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The Wall Street Journal - March 29, 2018

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THURSDAY, MARCH 29, 2018 ~ VOL. CCLXXI NO. 73
* * * * * *
DJIA 23848.42 g 9.29 0.04%
NASDAQ 6949.23 g 0.9%
STOXX 600 369.26 À 0.5%
10-YR. TREAS. À 4/32 , yield 2.777%
OIL $64.38 g $0.87
GOLD $1,324.20 g $17.10
Adieu to a French Hero
What’s
News
he clobbering that
technology shares
have taken in recent days
has magnified how much
sway they have gained in
global stock markets. A1
U.S. stocks continued to
struggle, with major indexes
ending lower. The Dow fell
9.29 points to 23848.42. B11
T
Equifax named Mark Begor as CEO, the second change
to the post since the disclosure of a big data breach. B3
Uber’s head of freight
trucking, Lior Ron, who
helped work on autonomous-vehicle technology,
is leaving the company. B4
Concho Resources has
agreed to buy RSP Permian in a deal valued at
roughly $9.5 billion. B6
CME has offered to buy
U.K. financial-technology
firm NEX in a bid valuing
it at about $5.4 billion. B10
CACI withdrew its bid
for CSRA, paving the way
for a General Dynamics
deal to continue. B3
Hospital systems Ascension and Providence St.
Joseph have halted talks
about a possible merger. B2
World-Wide
The U.S. wants to step
up NATO readiness to ensure that European allies
can quickly get more forces
to trouble spots, amid rising tensions with Russia. A1
Trump said he had
ousted Shulkin as VA secretary and tapped the White
House physician, Ronny
Jackson, to replace him. A4
The president’s shake-up
of his national-security
team is likely to reshape the
role played by Kushner. A4
Trump campaign adviser
Gates was in touch in the
fall of 2016 with a person he
said was a Russian former
spy, Mueller’s office said. A6
The Justice Department’s
internal watchdog unit will
probe how warrants were
obtained to surveil former
Trump aide Page. A4
Some clients of Cambridge Analytica say the
firm struggled to make
good on CEO Nix’s claims
about its voter profiling. A9
North Korea’s Kim has
taken his first, tentative steps
onto the world diplomatic
stage with his Beijing trip. A7
British investigators said
they believe that the nerve
agent used against a Russian
ex-spy had been applied to
the front door of his house. A9
The Treasury plans to use
laws designed for national
emergencies to block Chinese firms from acquiring
advanced U.S. technology. A6
The Supreme Court appeared far from consensus in
a gerrymandering case. A3
Died: Peter Munk, 90,
founder of Barrick Gold. B6
CONTENTS
Business News...... B3
Capital Account.... A2
Crossword.............. A14
Heard on Street. B12
Life & Arts....... A11-13
Management.......... B6
Markets............. B11-12
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News............. A2-6
Weather................... A14
World News. A7-9,18
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
PHILIPPE LOPEZ/AGENCE FRANCE-PRESSE/GETTY IMAGES
Facebook is curbing the
information it exchanges
with companies that collect and sell consumer
data for advertisers. B4
YEN 106.85
BY STEVEN RUSSOLILLO
SOMBER HONOR: French President Emmanuel Macron presided over a national ceremony Wednesday to honor Lt. Col. Arnaud Beltrame,
a gendarme who was killed after offering himself as a hostage during a terrorist attack in southern France on Friday. A9
NATO Braces for Russian Threat
U.S. leads effort for
European allies to get
more troops quickly to
potential trouble spots
ships, can reach a trouble
spot within 30 days of NATO
commanders putting forces on
alert, current and former allied officials say.
Tensions between Russia
and the West are as high as
they have been in years. This
week, NATO joined the U.S.,
Canada and a dozen European
countries in the largest expulsion of Russian diplomats
since the Cold War, a coordinated protest to a nerve-agent
attack on a former Russian spy
in the U.K. Washington and its
allies have also imposed sanctions over Moscow’s military
intervention in Ukraine and alleged meddling in the 2016
BY JULIAN E. BARNES
BRUSSELS—If Europe came
into conflict with Russia, only
several thousand of the more
than one million troops in its
armies would be ready for
rapid deployment, military
planners fear.
The U.S. now wants to step
up readiness and ensure that
at least 30,000 troops, plus
additional aircraft and naval
Trump Names
New VA Head
U.S. presidential election.
Russia denies any role in
the nerve-agent attack or election meddling. The Kremlin
has painted the moves as a
concerted campaign against
the country as it reclaims its
place among the world’s great
powers and has vowed to respond forcefully.
Boosting allied readiness in
the face of resurgent threats
from Russia has become a priority of U.S. Defense Secretary
Jim Mattis. He has told the
North Atlantic Treaty Organization it must speed decisionmaking, improve its ability to
move forces and ensure it has
units ready to deploy with little
notice, alliance officials said.
NATO officials are debating
the issue. Officials say there is
general acceptance of the U.S.
position and allies hope to
reach an agreement before a
summit of leaders in July. A
U.S. proposal would have the
alliance commit to having 30
battalions, 30 fighter squadrons and 30 naval ships ready
to deploy. That would translate
to roughly 30,000 troops and
more than 360 fighter planes.
During the Cold War, American plans foresaw moving 10
Please see NATO page A8
U.K. traces poison to former
spy’s front door........................ A9
The clobbering that tech
shares have taken in recent
days has magnified not only
how influential these companies have become in people’s
everyday lives, but how much
sway they have gained in
global stock markets.
Investors are concerned that
the tech giants have grown so
much and so fast in recent years
that they now carry outsize
weight. Combined, the five largest U.S. technology and internet
companies account for more
than 14% of the S&P 500 index’s
weighting. Their rapid gains
have come alongside heavy inflows into passive funds that
track indexes like the S&P 500,
leaving millions of investors
susceptible to greater downside.
Tech shares came under
more pressure Wednesday amid
fears of increased regulatory
oversight. The NYSE FANG+ Index—which tracks 10 global tech
heavyweights—fell 2.4%, extending losses after suffering its
worst one-day drop on Tuesday.
Major U.S. indexes continued to slump as well in another volatile session that saw
the tech-heavy Nasdaq Composite slip 0.9% and underperform the S&P 500 and Dow
Jones Industrial Average,
which posted modest losses.
The S&P 500 technology sector
is down 6% so far this month.
Amazon.com Inc. and Tesla
Inc., both components of the
NYSE FANG+ Index, were
among the weakest performers
Please see TECH page A2
Tesla’s bonds, stock continue
to tumble...................................... B1
Lawsuits over iPhones begin
to cluster....................................... B1
James Mackintosh: Market
awakens to tech’s risks........ B1
State Budgets Face Historic Squeeze
Medicaid, pensions consume highest proportion of nonfederal tax revenues since 1960s
BY CEZARY PODKUL AND HEATHER GILLERS
MANUEL BALCE CENETA/ASSOCIATED PRESS
Heavy selling of Tesla
shares and bonds persisted,
posing a new challenge for
the electric-car maker. B1
EURO $1.2310
Tech Slide
Hits Wide
Swath of
Investors
Business & Finance
Japan’s Takeda said
that it is weighing a bid for
London-listed Shire. The
potential deal would create
a global drug giant. A1
HHHH $4.00
WSJ.com
The only speaker standing between state
budget officers and the opening cocktail hour
at a Washington conference was the U.S. Secretary of Health and Human Services. What he
said left no one in a celebratory mood.
Medicaid costs, said then-Secretary Michael Leavitt, were projected to grow so fast
that within 10 years they would “crowd out
virtually every other category of spending.”
State spending on higher education, infrastructure and safety, he predicted, would all
get squeezed.
Nearly 10 years after that October 2008
speech, Mr. Leavitt’s prediction—part of HHS’s
first-ever annual projection of Medicaid’s
costs—is looking prescient.
As state and local officials prepare their
next budgets, many are finding that spending
SWITCH: Donald Trump ousted Dr.
David Shulkin as Veteran Affairs
secretary; the president nominated
Rear Adm. Ronny Jackson, above,
his doctor, to the post. A4
Considering #DeleteFacebook?
First, Write a Post About It
i
i
i
Abandoning the network brings joy,
agony and relief, if users get that far
BY BETSY MORRIS
Matt Carter is trying to end a
relationship he suspects has run
its course. But breaking up with
Facebook is hard to do.
He discovered that on his
drive home from his senior
product manager job
at Idexx Laboratories
Inc.
in
Westbrook, Maine, last
week. As he listened
to the latest news
about the social-media giant, he thought
seriously for the first time:
Maybe I will delete Facebook.
Almost
instantaneously,
though, “I began to think I
should probably tell people” on
Facebook, he recalls. Then, “I
thought I should probably wait
and see how they react.” Simultaneously he began to laugh at
“what a ridiculous chain of
thought—that Facebook had
gotten so far into the fabric of
how we are” and realized it
was…perfect for a Facebook
post.
He wrote it when he got
home.
#DeleteFacebook? It’s complicated. For most people, a breakup with
Facebook is socially
messy and psychologically
fraught.
Even contemplating
the move reveals the
deep and unanticipated ways in which the relationship has worked its way like
tentacles into one’s social and
professional affairs.
Facebook has issued mea culpas for its botched handling of
user data that landed it in the
hands of an analytics firm tied
to President Donald Trump’s
Please see DELETE page A10
decisions have already been made for them
by two must-fund line items that barely mattered when baby boomers such as Mr. Leavitt
were growing up: Medicaid, the state-federal
health insurance program for the poor and
disabled, and public-employee health and retirement costs.
These days, they consume about one out
of every five tax dollars collected by state
and local governments. That is the highest
share since Medicaid was created in 1965.
Postretirement health benefits, which are
harder to quantify, add to that burden and
have cumulatively cost states more than
$100 billion since 2008, according to government financial disclosures compiled by Merritt Research Services.
Please see BUDGET page A10
Crisis Point
Greg Ip: U.S. borrows, may pay dearly later... A2
THE WALL STREET JOURNAL.
Japan Giant
Looks West
For Possible
Major Deal
Takeda Pharmaceutical Co.’s
potential pursuit of Shire PLC
would rank as one of the biggest-ever attempts by a Japanese company to take over a
Western rival, as a strengthening yen helps fuel ambitious
overseas expansion.
By Peter Landers
in Tokyo and Noemie
Bisserbe in Paris
Takeda said on Wednesday
it is weighing a bid for London-listed Shire, whose drugs
include Adderall, for attention
deficit hyperactivity disorder.
The potential deal would create a global drug firm worth
more than $80 billion and
add to a torrid run for mergers and acquisitions so far
this year—much of it in
health care as companies in
the industry respond to a rapPlease see DEAL page A8
Per capita growth for state and
local governments since 1966*
Medicaid
spending
2,000%
1,500
1,000
Pension
contributions
500
0
1967
Tax receipts
’10
*Inflation-adjusted figures
Sources: Bureau of Economic Analysis;
Centers for Medicare and Medicaid Services
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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.
.
A2 | Thursday, March 29, 2018
THE WALL STREET JOURNAL.
* *
U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip
U.S. Borrows Now, and May Pay Dearly Later
If you think
the federal
debt is bad,
the bigger picture is worse.
A recent report from Moody’s Investors
Service shows why. Moody’s
is to governments what Experian is to individuals: a monitor of creditworthiness. The
U.S., Moody’s report shows, is
blessed with extraordinary
advantages when it comes to
borrowing. Yet it is about to
experience a dramatic loss of
financial freedom because it
is shrinking its tax base just
as interest expenses surge
and social programs get
harder to cut. It is like someone who borrows freely
thanks to his rich parents but
can’t keep a steady job and
won’t curb his lifestyle.
No, the U.S. isn’t about to
turn into Greece. Indeed,
Moody’s rates U.S. government credit as AAA, the highest possible, which means the
probability a Treasury bondholder gets back less than 100
cents on the dollar is effectively zero. Moody’s notes the
U.S. capacity to borrow is in a
class of its own: trading in
Treasury bonds exceeds that
of the rest of the Group of
Seven major industrial countries together. The dollar’s
share of global currency reserves is double that of all
others combined. All this
means that there are ample
lenders when the U.S. wants
to borrow.
The U.S.’s underlying economic prowess is also without
peer: it is rich and diversified,
produces most of its own
food and energy, has a growing population, and it is entrepreneurial and competitive.
B
ut those assets are all
legacies of the U.S.’s
past, and some are
eroding: business dynamism
by some measures and economic growth have both declined, and the population is
aging. If the U.S. pivots toward less trade and immigration, the ratings company
warns, that may “swing the
balance of risks for long-term
growth to the downside.”
Slow growth can be managed with the right fiscal
policies. This is where it
gets worrisome. In the U.S.,
interest swallowed 8% of
federal revenue last year,
the highest of all AAA-rated
countries. As interest rates
return to normal and debt
keeps rising, Moody’s thinks
it will hit 21.4% in 2027. This
severely limits the government’s flexibility to respond
to emergencies, whether a
financial crisis, a recession,
or a war, not to mention
longer-term priorities such
Credit Check
Interest swallows a growing share of federal revenue, more than in
similar countries.
Interest on U.S. debt as a
percentage of federal revenue
Interest as a percentage of
revenue in 2017
Moody's credit rating
Aaa
25%
Projections
20
15
10
5
0
1970 ’80 ’90
00
’10
’20
Source: Moody's Investors Service
as education and research.
“As interest is rising, that
crowds out other spending,”
says William Foster, an analyst at Moody’s.
U.S. taxes are relatively
low, which in theory leaves
plenty of room to raise them
if needed. But creditworthiness depends not just on the
ability but the willingness to
pay. No country’s voters like
Aa2, A1
Baa2
Italy
8.3%
U.S.
8.1
Canada
7.3
U.K.
6.5
Japan
5.3
New Zealand
4.6
Australia
4.3
France
3.6
Germany
2.8
Denmark
2.5
Netherlands
2.3
Norway
1.4
Sweden
0.8
Luxembourg
0.7
Switzerland
0.5
Singapore
0
THE WALL STREET JOURNAL.
to pay taxes but Americans
are much more resistant than
their counterparts in, for example, Scandinavia, where
high government spending
corresponds to high taxes.
While Moody’s doesn’t address partisan divisions in the
U.S., those have also narrowed fiscal options. Republicans adamantly oppose tax increases, and indeed just
passed a tax cut on party
lines that is projected to slash
revenue to just 16% of GDP, a
level normally seen only when
the economy is weak, not at
full strength as it is now.
Democrats have proposed
rolling back some of those tax
cuts—to fund new spending.
Republicans have long argued the solution to deficits is
less spending, not higher
taxes. This, however, vastly
oversimplifies matters. Much
of the upward pressure on
federal social spending comes
from aging, which can’t be reversed, which means benefits
would have to be cut.
Moody’s says in a crisis
wealthy countries in theory
can tolerate lower social benefits because that doesn’t impoverish people. But it goes
on to note that income inequality and poverty are both
higher in the U.S. than among
its wealthy peers, and thus “it
may have less flexibility” to
cut entitlements.
E
ven Republicans have
little appetite for cutting spending. President
Donald Trump threatened Friday to veto a bill funding the
government for the rest of
the fiscal year because it
didn’t spend enough on a border wall.
“We’re in a full-blown era
of free-lunch economics
U.S. WATCH
Search for Missing Teens Turns Up 2 Bodies in Abandoned Utah Mine
ECONOMY
Revision Puts GDP
At 2.9% in 4th Quarter
LAURA SEITZ//THE DESERET NEWS/ASSOCIATED PRESS
The U.S. economy entered
2018 with stronger momentum
than earlier thought, though corporate profits weakened at the
end of 2017 against a backdrop
of significant changes to the tax
code. Gross domestic product, a
broad measure of the goods and
services produced across the
U.S., rose at a 2.9% annual rate
in the fourth quarter, adjusted
for seasonality and inflation, the
Commerce Department said
Wednesday. That was up from a
previous estimate of 2.5%.
—Ben Leubsdorf
NASSAR ABUSE SCANDAL
Mediation Planned
In Suits by Victims
GRIM DISCOVERY: Police believe they have found the bodies of teenagers Riley Powell and Breezy Otteson of Eureka, Utah, who have
been missing since Dec. 30. Police say they have persons of interest. Mr. Powell’s Jeep was found abandoned at a reservoir.
TECH
Continued from Page One
Wednesday. Amazon fell 4.4%
and closed in correction territory—off more than 10% from
its March 12 high—amid speculation that the White House
wants to clamp down on the ecommerce giant’s growing
dominance.
White House press secretary Sarah Huckabee Sanders
said on Wednesday that President Donald Trump wants “a
level playing field “for all businesses but noted “there aren’t
any specific policies on the table at this time.”
Tesla, meanwhile, slumped
7.7%, extending its Tuesday’s
tumble, amid an investigation
into a fatal Tesla crash and following a Moody’s Investors Service rating downgrade on the
electric auto maker’s debt. Selling in Tesla bonds also intensified, driving the price of its unsecured debt to new lows.
Facebook Inc. has been the
worst performer among the big
tech companies, falling 13% this
year amid controversy over how
it handles users’ data. Chief Executive Mark Zuckerberg expects to testify before Congress
about the company’s privacy
and data-use standards, in what
would be his first public testimony before lawmakers.
Shares of Apple Inc. and
Google parent Alphabet Inc.
are also down for the year, faltering in recent weeks on concerns that tech firms face
tighter regulation.
The declines illustrate a
rapid shift in investor confi-
dence in the sector, which until recently had been a reliable
generator of big returns and a
major driver of the market’s
run. It isn’t yet clear whether
the selloff marks a permanent
shift from tech stocks’ leadership of the market, or a temporary hit to the companies’
reputations.
Up
until
recently
“these … names have been as
close as one can get to a stabilizing force in the market,” said
Mike O’Rourke, chief market
strategist at U.S. brokerage firm
JonesTrading.
Highflying companies including Microsoft Corp., Alphabet and Facebook were
among the most widely held
last year by institutional investors, such as pension funds
and endowments, according to
eVestment data. Apple Inc. and
Amazon, technically a consumer stock, also cracked the
top 10 in ownership breadth.
As of March 12, Facebook,
Amazon, Apple, Microsoft and
Alphabet accounted for 45% of
the S&P 500’s year-to-date gain,
he said, indicating just how central they have become to stock
index moves.
The overall tech sector now
has a 27% weight in the S&P
500, making it by far the largest
component. Financial stocks, in
second place, account for 17%,
according to Thomson Reuters.
“Due to Facebook’s privacy
scandal, the tech-lash theme has
been gaining momentum,” Mr.
O’Rourke said.
Plenty of investors remain
confident tech companies can
maintain strong growth rates.
Nearly 90% of U.S. tech
companies beat consensus rev-
Sharp Bite
NYSE FANG+ Index, which tracks
10 of the biggest global tech
stocks, fell 5.6% on Tuesday, its
worst drop on record.
NYSE FANG+ Index, daily change
3%
2
1
0
–1
–2
–3
–4
–5
–6
January
February March
Source: Thomson Reuters
THE WALL STREET JOURNAL.
enue estimates in the fourth
quarter, noted Toni Sacconaghi, a tech analyst at Sanford
C. Bernstein. That is the best
beat rate for any sector and
the highest for tech companies
in the past five years.
Expectations for tech spending growth for 2018 were the
highest in the 14-year history of
a Bernstein survey of chief information officers.
The tech sector’s growing
clout isn’t just a U.S. story.
Tech stocks have become so
dominant in emerging markets
that for the first time since
2004, the industry last year
overtook finance as the biggest
sector in the MSCI Emerging
Markets Index.
Tech had a 28% weighting
near the end of 2017, more
than double its level six years
ago, according to data provided by MSCI.
Samsung Electronics Co.
carries a roughly one-fourth
weighting in South Korea’s
benchmark Kospi stock index.
As the country’s biggest exporter, it has fallen 4.4% this
year, largely due to concerns
about heightened global trade
tensions.
Asia’s most valuable company, Tencent Holdings Ltd.,
holds nearly a 10% weighting in
Hong Kong’s Hang Seng Index.
Its share price is close to slipping into the red for the year after disappointing earnings last
week and news that an early
shareholder was selling a stake
in the Chinese internet giant. A
two-day selloff last week wiped
out $52 billion of the company’s
market value.
Tencent’s stock more than
doubled last year, catapulting
its market value above $500
billion.
The company’s sheer size has
prompted caution among some
investors. Eric Moffett, a portfolio manager for T. Rowe Price in
Hong Kong, said his fund has
owned shares since he started
managing it in 2014.
But the fund has sold some
of it stake in Tencent for the
past six months due to valuation concerns, he said. He said
the shares, trading at 40 times
projected earnings, look “priced
for perfection”—meaning investors expect flawless performance by the company. This can
prompt sharp pullbacks, like the
selloff seen last week.
—Ben Eisen
contributed to this article.
where no one says no to anyone anymore,” says Maya
MacGuineas, president of the
Committee for a Responsible
Federal Budget, a watchdog
group.
Does it matter? Japan’s
debts are higher and the
country long ago lost its AAA
rating, yet it has no problem
whatsoever borrowing. After
Moody’s competitor Standard
& Poor’s Corp. stripped the
U.S. of its AAA in 2011, interest rates went down, not up.
As Moody’s says, the global
pool of savings from which
the U.S. borrows tends to
grow in times of stress.
There are at least two reasons it matters. First, when
the next recession hits, the
U.S. may want to open the fiscal taps but instead have to do
the opposite as tax collections
sink and deficits mount. Second, while markets and the
Federal Reserve both doubt
interest rates will go much
above 3% for the foreseeable
future, the U.S. is acutely vulnerable if they are wrong because the debt is so large and
so much of it comes due each
year, and would have to be refinanced at higher rates.
“We are the greatest country with the strongest economy yet we seem intent on
finding out when we can’t
borrow any more in a painless
way,” Ms. MacGuineas says.
Mediation talks between hundreds of alleged victims of Dr.
Larry Nassar and the various
parties they say are responsible
for his decades of sexual abuse
could begin in the coming
weeks, according to court filings
and the parties involved.
In a motion filed in Michigan
federal court Tuesday, lawyers
for about 250 plaintiffs, Michigan State University, USA Gymnastics and other defendants
asked the judge to extend deadlines regarding pretrial document
production and efforts to dismiss the suits, saying they had
found a mediator and agreed to
resume talks.
—Melissa Korn
MASSACHUSETTS
Utilities Cut Ties
To Power-Line Project
Electric utilities in Massachusetts broke ties with Eversource
Energy’s Northern Pass powerline project in New Hampshire
that was envisioned to connect
New England’s most populous
state to hydroelectric dams in
Canada.
The Massachusetts utilities
instead are pressing ahead with
a different power line planned
through Maine. That $950 million, 145-mile Maine project by
an Avangrid Inc. unit is shorter
in length and would cost less
than Eversource’s $1.6 billion
Northern Pass but will take two
years longer to complete.
—Jon Kamp
CORRECTIONS AMPLIFICATIONS
In a video on Water-Gen
Ltd.’s website, Israeli Prime
Minister Benjamin Netanyahu
said that Moses “brought water from a rock.” In some editions Wednesday, a U.S. News
article about the Environmental Protection Agency signing
a deal to test technology from
the Israeli company incorrectly gave the quote as
“brought water from Iraq.”
Remington Outdoor Co. is
being advised by Alvarez &
Marsal North America LLC.
In some editions Monday, a
Business & Finance article
about the firearms maker’s
bankruptcy-protection filing
incorrectly said Alvarez &
Marsal Capital Partners.
A graphic with a World
News article on Friday about
Nafta negotiations on auto-industry rules showed U.S. imports of passenger cars and
parts in billions of dollars. The
graphic was incorrectly labeled in millions of dollars.
The name of the National
Association of State Budget
Officers was incorrectly given
as the National Association of
Budget Officers in a U.S. News
article on March 19 about
state spending on teachers’
pensions.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A3
* *
U.S. NEWS
Consensus
Eludes
Justices on
Districts
WASHINGTON—The
Supreme Court appeared far from
consensus on cracking the constitutional conflict of interest
presented by politicians drawing their own electoral districts, in its second gerrymandering case of the term.
Wednesday’s case involved
Maryland’s Sixth Congressional
District, which justices across
the spectrum agreed was
drawn to push the seat into the
Democratic column.
The evidence was “pretty
damning,” Justice Sonia Sotomayor told Maryland’s lawyer,
Steven Sullivan. “Your own
governor [said] that he felt
duty-bound to ensure that his
party won.”
And it did so, with Democrats picking up a seat to hold
seven of Maryland’s eight
votes in the U.S. House.
Mr. Sullivan, the state solicitor general, said the district
was drawn to be “competitive,” and observed that Maryland voters rejected a Republican-led voter referendum to
junk the map.
While Mr. Sullivan took flak
for partisan motives the Democratic former governor, Martin
O’Malley, has acknowledged,
the challengers’ lawyer, Michael Kimberly, fared no better
with his claim that the Maryland map violated Republican
voters’ free-expression and political-association rights.
Justice Samuel Alito said he
had difficulty making sense of
Mr. Kimberly’s theory. “But, if
understand it, I really don’t see
how any legislature will ever be
able to redistrict,” Justice Alito
said. “Hasn’t this court said
time and again you can’t take
all consideration of partisan
advantage out of districting?”
Mr. Kimberly’s approach
was developed in part to address First Amendment concerns that Justice Anthony
Kennedy, a pivotal vote on
gerrymandering issues, has
raised regarding partisan redistricting practices. While
Justice Kennedy appeared
sympathetic to the theory, he
questioned whether it was appropriate to throw out Maryland’s congressional map so
close to the 2018 elections.
“People are planning campaigns and so forth,” he said.
“Are you suggesting that it
would not be disruptive...for
this court to remand to consider whether the map should
be changed at this late date?”
Mr. Kimberly said that “I
think it would perpetuate the
same sort of uncertainty,
frankly, that’s been hanging
over Maryland politics from the
pendency of this suit all along.”
M. SCOTT BRAUER FOR THE WALL STREET JOURNAL
BY JESS BRAVIN
College admissions officers generally say it isn’t easier to get in by early admissions, but rather that the early applicant pool includes particularly strong candidates.
Apply Early, It’s the New Normal
At Harvard, Yale and
other elite schools,
growing numbers try
for early admittance
Playing the Odds
Senior Stress Test
Ivy League schools take a much higher share of applicants during
early-admission rounds. Admission rates for class of 2021:
Early admit
BY MELISSA KORN
Brown
The odds of getting into
Harvard and other elite universities are slimmer for students
who apply in the regular pool
than for those who apply in
early rounds.
This harsh reality was
driven home when Harvard,
Yale, Penn and other Ivy
League institutions released
their regular-decision admission notices Wednesday evening: Large proportions of their
incoming first-year classes
were locked in months ago under early-admittance programs.
High-school seniors desperate for a leg up in the brutal
competition for spots at selective colleges have increasingly
been applying through binding
early-decision or more flexible
early-action programs, rather
than meeting Jan. 1 application
deadlines and waiting until
spring for an answer.
The admission rate for earlyround candidates, who typically
learn their fates in December, is
often two or three times that of
regular applicants. Harvard last
year admitted 14.5% of earlyaction applicants and about
3.3% of regular-decision applicants. Many institutions fill
40% or more of their incoming
classes with early applicants.
Dartmouth College expects
Columbia*
Regular admit
21.9%
6.9
5.8
Cornell
Dartmouth
Harvard
Princeton
28.0
8.5
14.5
3.3
6.1
Penn
Yale
25.8
11.0
15.4
22.0
7.0
5.0
17.0
*Columbia's admission rate combines early- and regular-round admission figures.
Source: the schools
THE WALL STREET JOURNAL.
students admitted through its
early-decision process to make
up nearly half its first-year
class next fall. The school received 2,270 early applications, compared with roughly
20,000 in the regular cycle.
Early-decision applicants make
up 53% of Northwestern University’s current freshman
class, and just over half at
Vanderbilt University.
“It’s staggering,” said Brennan Barnard, director of college counseling at the Derryfield School in Manchester,
N.H. This year, 62 of his 65 seniors submitted an application
by Dec. 1 and about three-quarters of the class had an acceptance coming out of the early
rounds. Many apply early not
necessarily because they are
attached to one particular
school, but because they fear
missing out on the chance to
get in somewhere, he said.
Students see schools’ single-digit acceptance rates,
worry about their chances and
apply early, perpetuating the
rush for another year, says
Stephen Friedfeld, chief operating officer at Newton, Mass.based admission-consulting
firm AcceptU.
Early-round applicants are
either accepted, rejected or deferred to be reconsidered in the
general pool.
College admissions officers
generally say it isn’t easier to
get in by early admissions, but
rather that the early applicant
pool includes particularly stellar candidates who have shown
Hannah Strauss, a 17-yearold senior at Edgemont High
School in Scarsdale, N.Y., applied early decision to Cornell
University in part because a
number of family members
had attended and she was familiar with the school. She also
worried her chances of getting
in would decrease if she
waited for the regular application cycle, she said.
“There’s a lot of pressure to
find a place to apply early because everyone wants to be
settled,” she said. She was accepted at Cornell.
Harvard said in December it
commitment to the school.
Early-round figures can also include recruited athletes, which
skews the numbers, they say.
Critics of early admissions
say the system creates a disadvantage for students who aren’t
quite sure where they want to
go, need to compare financialaid offers or haven’t received
extensive counseling on the college-application process.
Officials for the schools said
their deans of admissions
weren’t available for comment.
Josh Coan, director of school
counseling at Wheaton North
High School near Chicago, says
applying to a school early gives
his roughly 500 seniors—and
his office—peace of mind.
“We don’t want them to
wait as their college or univer-
received a record 6,630 “restrictive early action” applications for the class that will enter next fall.
Students who apply in the
early round aren’t required to
enroll if admitted. While they
can’t apply to early-admissions
programs at other private
schools, they can do so at public or foreign universities.
In a press release announcing the previous year’s earlyaction admits, the admissions
dean at Harvard called early
admission the “new normal.”
Binding early-decision applications were up by double digits on a percentage basis this
year at schools including
Brown, Dartmouth and Duke.
sity fills the freshman class,”
he said.
Securing a big portion of the
class early lets schools better
plan their regular admissions
decisions and predict yield, or
the share of admitted students
who actually enroll. At Colorado College, the number of
students admitted through
early rounds has doubled over
the past decade, while the class
size has been steady.
In 2006, Princeton and Harvard dropped their early-decision options, citing them as
barriers for low-income and
minority applicants.
When peer schools didn’t
follow suit and continued snapping up top students early, they
reintroduced slightly more flexible versions of the programs.
Transportation Grants Get Rural Shift
BY TED MANN
The Trump administration
has more than tripled the
amount of money flowing
from an Obama-era transportation program to projects in
rural areas, shifting aid to localities that the White House
says have been left behind in
years of postrecession economic expansion.
The $211 million swing toward rural communities in the
Transportation Department
grant program is one of the
most concrete policy shifts in
the agency’s stated goal of
helping less densely populated
areas of the country—most of
them regions that voted for
President Donald Trump in
2016.
The 2017 grants announced
this month under the program,
called Transportation Investment Generating Economic Recovery, or Tiger, total nearly
$500 million in funding for
highway and transit projects
across the country. Some $314
million of those grants, or
about 64% of the total, will go
to projects in rural locations,
defined as those outside areas
with 50,000 or more residents.
About 19% percent of the U.S.
population lives in those rural
areas.
The funding is more than
three times the $100 million
minimum required to be set
aside for rural areas under the
most recent appropriation for
the grants; in the final year of
Country Roads
Nearly two-thirds of the 2017
Tiger transportation grants went
to projects in rural parts of the
country. That reverses the trend
of the Obama administration.
Percentage of Tiger grant
money allocated
Rural projects
Urban projects
100%
75
50
25
0
2009
’11
’13
’15
’17
Source: Transportation Department
THE WALL STREET JOURNAL.
Barack Obama’s presidency,
$103 million in grants went to
rural projects.
Under Mr. Obama, the
Transportation Department
sent more than $1 billion total
in Tiger grants to rural areas,
slightly more than 21% of the
$5 billion distributed through
the program during his presidency.
And the program is set to
get bigger. Mr. Trump had
proposed eliminating the
grant program altogether, cutting funding to zero in both of
his budget proposals. But Con-
gress rebuffed those cuts, tripling the size of the Tiger program to $1.5 billion this year
in the spending bill enacted
last week. The program hasn’t
been funded at that level since
2009, when it was conceived
as part of the Obama administration’s effort to stimulate
the economy and pull out of
recession.
The Trump administration
says it is shifting the government’s focus to areas of the
country that have been neglected in the years since. “We
put a real focus on rural projects,” a senior official said.
The administration has
made caring for rural areas a
central tenet of its plans for
funding infrastructure improvements. That includes its
long-stalled bid to generate
more than $1 trillion in public
works over 10 years, funded
primarily by state and local
governments, but with a designated federal funding stream
for projects in rural locations.
“For years and years and
years, for decades, rural America has been ignored and forgotten,” Transportation Secretary Elaine Chao said in a
recent House committee hearing, one of several frosty exchanges with representatives
of suburbs and cities, who
warn that the administration
is shortchanging densely populated areas. “This infrastructure proposal tries to address
the needs in rural America,”
she said.
Some transit advocates and
lawmakers were alarmed by the
2017 grant awards, which they
said would skew the program
away from the regions that
hold the majority of citizens
and away from transportation
modes, such as mass transit,
that serve the most people.
“This is driven by political
retribution,” said Rep. Mark
DeSaulnier, a California Democrat, who argues that the
Trump administration’s approach saps support from the
most congested areas of the
country. “It’s clearly meant to
benefit the Trump-supporting
areas.”
The shift in grants will benefit some regions that voted
for Hillary Clinton in 2016.
But, on balance, it is a benefit
to regions that supported Mr.
Trump.
Of the 28 all or partly rural
projects funded in the current
round, more than two-thirds
are in counties that voted for
Mr. Trump.
A Transportation Department official noted that eligibility criteria for the grants
are publicly available and said
the 2017 awards were unrelated to the results of the 2016
presidential election.
The administration says its
approach helps the program
cover more of the country; in
2017, grants were awarded to
projects affecting 43 states.
“No one state can unduly
bow out other states in the Tiger program,” Ms. Chao said.
HAPPY DIAMONDS
N ew Yo r k | B al H ar bou r S h op s | B r ick ell C it y C en t re
S ou t h C oas t P laz a | W y n n H ot el & Res or t
R iv er O ak s D is t r ict
1 - 8 0 0 - C H O PA R D www.ch op ard.com / u s
.
A4 | Thursday, March 29, 2018
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THE WALL STREET JOURNAL.
U.S. NEWS
President Ousts Shulkin as VA Secretary
Trump says he will
nominate White
House physician to
lead veterans agency
WASHINGTON—President
Donald Trump on Wednesday
said he had ousted his Veterans Affairs secretary, David
Shulkin, and tapped the White
House physician, Ronny Jackson, as his replacement.
“I am pleased to announce
that I intend to nominate
highly respected Admiral
Ronny L. Jackson, MD, as the
new Secretary of Veterans Affairs,” Mr. Trump tweeted
Wednesday. He said Robert
Wilkie, who currently serves
as under secretary of defense
for personnel and readiness at
the Department of Defense,
would serve as acting secretary “in the interim.”
In a statement issued by
the White House, Mr. Trump
praised Dr. Shulkin’s work and
“the many great things we did
together at Veterans Affairs,
including the VA Accountability Act that he was helpful in
getting passed.” The president
called Dr. Shulkin a “great
supporter of veterans across
the country and I am grateful
for his service.”
Dr. Shulkin didn’t return a
MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
BY REBECCA BALLHAUS
AND BEN KESLING
President Donald Trump considered replacing VA Secretary David Shulkin for weeks.
request for comment on
Wednesday.
Dr. Jackson is a U.S. Navy
rear admiral who has served
as a White House physician
during the past three administrations. In that role, he has
overseen health care for the
cabinet and senior staff,
served as a physician supervi-
sor at Camp David and led the
White House Medical Unit, the
White House said.
Dr. Jackson, if confirmed by
the Senate, would take over
the second-largest federal
agency, which has more than
370,000
employees.
The
agency has struggled in recent
years following a 2014 scandal
over wait-times for VA hospital appointments.
At a White House briefing
in January, Dr. Jackson
praised the president’s “incredible genes,” saying he was
“very healthy and will remain
so for the duration of his
presidency.”
Top
veterans
groups
praised Dr. Shulkin on
Wednesday, while some expressed concerns about his replacement.
“We’re really surprised at
this nominee,” said Joe
Chenelly, national executive
director of Amvets, a veterans advocacy group. “Looking
at his background we don’t
see anything that indicates
he’s capable of running a
$200 billion agency. The VA
is a lot more than just a medical system.”
Mr. Trump considered replacing Dr. Shulkin for weeks,
following an inspector general’s report last month that
said the secretary had misspent taxpayer money during
an official trip to Europe last
year.
Within minutes of tweeting
his decision to replace Dr.
Shulkin, the president called
Sen. Johnny Isakson (R., Ga.),
according to an aide to the
senator. Mr. Isakson serves as
chairman of the Senate Committee on Veterans’ Affairs,
which will be charged with
confirming Dr. Jackson.
Dr. Shulkin was the only
cabinet-level holdover from
President Barack Obama’s administration, having served as
the head of the VA’s healthcare arm under the former
president.
Dr. Shulkin was initially
praised for moving quickly to
improve veterans’ access to
private-sector health care and
overhaul systems like the department’s antiquated electronic health-records system.
But in recent months, the
secretary drew criticism on a
variety of fronts. As a result,
Dr. Shulkin had been on the
defensive, even going so far as
to call reporters to plead his
case and defend himself,
claiming that the VA’s public
affairs section wasn’t serving
his interests.
In the fall, the department
sent a proposed bill to Capitol Hill that would have overhauled the VA’s massive program known as Veterans
Choice, a multibillion-dollar
proposal to allow veterans to
seek care with private-sector
doctors. Some top lawmakers
on the House and Senate
committees on veterans’ affairs balked at the measure,
saying it went too far toward
privatization.
Surveillance of Ex-Trump Adviser Faces Investigation
WASHINGTON—The Justice
Department’s internal watchdog unit will investigate how
the FBI and federal prosecutors obtained warrants from
the nation’s secret spy court
to surveil a former Trump
campaign adviser, the inspector
general’s
office
said Wednesday.
The statement confirms an
investigation that Attorney General Jeff Sessions had requested
and disclosed last month.
The inspector general will
examine the Justice Department and the Federal Bureau
of Investigation’s compliance
with legal requirements in its
application for warrants from
the Foreign Intelligence Surveillance Court, the inspector
general, Michael Horowitz,
said in the statement.
Republican
lawmakers
have alleged abuses in how
top law-enforcement officials
sought in 2016 to monitor the
former campaign adviser,
Carter Page.
They have alleged that officials didn’t properly disclose
to the court the partisan motivations of information they received from an ex-British spy,
whose work in gathering the
information was being funded
by Democratic Party intermediaries.
A separate memo from
Democrats defended federal
investigators’ handling of the
surveillance.
It said the FBI had relied on
information beyond what the
ex-spy, Christopher Steele,
provided, had corroborated
some of his report and had
told the court about Mr.
Steele’s motivations.
The inspector general will
also look at what information
the FBI and Justice Department knew about a source that
provided information used in
the application, the statement
said.
Separately, the inspector
general has been reviewing
the FBI’s handling of its probe
into Hillary Clinton’s use of a
private email server when she
was secretary of state.
Some of its findings led to
the dismissal of former FBI
deputy director Andrew McCabe this month.
Mr. Sessions’ referral of the
issue to the inspector general
raised
President
Donald
Trump’s ire last month. “Why
is A.G. Jeff Sessions asking
the Inspector General to in-
vestigate potentially massive
FISA abuse,” he tweeted, adding the decision was “DISGRACEFUL!”
Complaints about alleged
wrongdoing by Justice Department personnel are generally
referred to the inspector general to examine.
At the time, Mr. Sessions
said he would continue to discharge his duties with “integrity and honor” and the
agency would work in a “fair
and impartial manner.”
Shift Remakes Kushner Role
BY PETER NICHOLAS
AND FELICIA SCHWARTZ
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WASHINGTON—President
Donald Trump’s shake-up of his
national-security team is likely
to reshape the role played by
Jared Kushner, a key counselor
whose global portfolio created
friction with departing Secretary of State Rex Tillerson, administration officials and others close to him said.
But the arrival of Mike
Pompeo as Secretary of State
and John Bolton as national
security adviser could curb
Mr. Kushner’s sway if foreign
diplomats, who have been
courting the president’s sonin-law as an alternative to Mr.
Tillerson, turn more to the
traditional U.S. diplomatic machinery. Policy differences
could also emerge.
In talking with friends, Mr.
Kushner has joked about the
hawkish Middle East views of
Mr. Bolton, who has said he
opposes a two-state solution
for achieving peace in the region in favor of Egypt and Jordan absorbing the Palestinian
territories.
The “Orthodox Jews” working toward a Middle East
peace deal—himself, White
House chief negotiator Jason
Greenblatt and U.S. ambassador to Israel David Friedman—
are now looking like “the moderates,” Mr. Kushner told his
friends, according to a person
familiar with the matter.
Mr. Pompeo must still be
confirmed in his post by the
U.S. Senate.
He and Mr. Bolton are expected to be immediately
thrust into negotiations over
a meeting between North Korea leader Kim Jong Un and
Mr. Trump, a historic session
the president wrote he
looked “forward to” in a
Wednesday tweet.
“Now there is a good
chance that Kim Jong Un will
do what is right for his people
and for humanity,” the president said Wednesday.
Mr. Kushner is helping craft
a Middle East peace plan and is
also a conduit to Mexican leaders and to Saudi Crown Prince
Mohammed bin Salman, who is
currently visiting the U.S.
Mr. Kushner’s ability to do
his job was hampered some-
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY ARUNA VISWANATHA
Foreign diplomats had courted the president’s son-in-law, left.
what when White House chief
of staff John Kelly downgraded
his security clearance last
month, giving him less access
to government secrets.
Coming off the latest
White House shake-up, Mr.
Kushner is engaging in diplomacy of a more personal sort
as he and Messrs. Bolton and
Pompeo carve out their respective roles.
Mr. Kushner’s dealings with
the incoming Secretary of
Jared Kushner has
made clear he wants
to collaborate with
Mike Pompeo.
State should improve in no
small part because his relationship with Mr. Tillerson
had significantly frayed, people close to Mr. Kushner said.
As Mr. Tillerson’s tenure
wore on, he spoke less and
less to Mr. Kushner, though
White House officials said
the former Exxon Mobil CEO
was growing increasingly isolated in the job and wasn’t
talking much to people outside his circle.
The departing secretary
would complain about Mr.
Kushner’s interactions with
Mexican government leaders,
objecting that he hadn’t heard
about agreements reached on
security, crime and other issues, a person familiar with
the matter said. That complaint mystified White House
aides, who said Mr. Kushner
was working closely with State
Department officials who had
been in a position to alert Mr.
Tillerson had he wanted the
information.
Others who watched the
duo said that Mr. Tillerson
was unhappy about what he
considered to be Mr. Kushner’s
freelancing: straying into foreign-policy matters that are
the State Department’s realm.
Foreign diplomats have
courted Mr. Kushner because
of his close ties to Mr. Trump,
another source of tension inside the State Department. But
several have expressed optimism that Mr. Pompeo will be
more representative of the
president’s views.
Mr. Kushner has made
clear he wants to work collaboratively with Mr. Pompeo, a
person familiar with the matter said. Over the past year,
when Mr. Pompeo served as
director of the Central Intelligence Agency, Mr. Kushner
would brief Mr. Pompeo about
his work.
Mr. Kushner has a longer
history with Mr. Bolton, having dealt with the new national security adviser during
the 2016 presidential campaign. When Mr. Bolton would
visit the White House he
would often stop in to see Mr.
Kushner.
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A5
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THE WALL STREET JOURNAL.
A6 | Thursday, March 29, 2018
U.S. NEWS
Mueller Links Gates With Ex-Spy U.S. Looks to Curb
China’s Tech Access
BY ARUNA VISWANATHA
BY BOB DAVIS
MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
WASHINGTON—A Trump
campaign adviser was in touch
in the fall of 2016 with a person he said was a Russian former spy, special counsel Robert Mueller’s office said in a
court filing that links cases
against top former Trump
aides with the wider probe
into Moscow’s election meddling.
Richard Gates, the campaign adviser, told Londonbased lawyer Alex van der
Zwaan that his longtime business associate in Ukraine was
a “former Russian intelligence
officer,” with the GRU, Russia’s
military-intelligence agency,
prosecutors on Mr. Mueller’s
team wrote in a memo filed in
federal court late Tuesday. The
three men communicated in
September and October 2016,
when Mr. Gates worked with
Donald Trump’s campaign, according to the prosecutors’
document.
Mr. van der Zwaan has admitted he hid from prosecutors the fact that the three
men were in touch that recently. The conversations
among the men concerned the
potential criminal prosecution
in Ukraine of Mr. van der
Zwaan and others, according
to court documents.
The disclosure helps connect the dots between the
cases against Mr. Gates and
former Trump campaign chairman Paul Manafort and Mr.
Mueller’s inquiry into Russian
Richard Gates, a Trump campaign adviser, is now cooperating with the Mueller investigation.
interference in the 2016 presidential election. Messrs. Gates
and Manafort were accused of
alleged financial misdeeds
connected to their political
consulting work for a pro-Russian political party in Ukraine
before the 2016 campaign. Mr.
Manafort also faces tax and
bank-fraud charges relating to
actions he took as recently as
January 2017.
Mr. Mueller, appointed in
the wake of Mr. Trump’s firing
of James Comey as FBI direc-
tor, has been examining potential links between Russia and
Mr. Trump’s campaign apparatus. U.S. intelligence has determined Russia interfered in the
U.S. election. Moscow has denied the accusation, and Mr.
Trump has also denied colluding with Russia.
Mr. Gates pleaded guilty
last month in connection with
the case and agreed to cooperate in Mr. Mueller’s inquiry.
Mr. Manafort has denied the
charges. Mr. van der Zwaan
pleaded guilty last month to
lying to Mr. Mueller’s investigators about his contacts with
Mr. Gates and the business associate in Ukraine.
The new details about the
connections among Messrs.
van der Zwaan and Gates and
a business associate identified
as a former spy and referred
to as “Person A” were laid out
in a memo filed by Mr. Mueller’s office urging a court to
sentence Mr. van der Zwaan to
jail. He faces up to six months.
Judge Declines to Dismiss Suit Against Trump
BY BRENT KENDALL
WASHINGTON—A federal
judge declined to dismiss a
lawsuit alleging President
Donald Trump is violating the
Constitution because his businesses are benefiting from his
presidency, the first ruling to
find a litigant can sue the
president on the issue.
The Wednesday ruling by
U.S. District Judge Peter Messitte found the state of Mary-
land and the District of Columbia had standing to bring
claims against Mr. Trump, who
hasn’t divested his business
holdings. The plaintiffs allege
Mr. Trump is violating constitutional clauses that prohibit the
president from receiving emoluments—things of value—from
foreign or state governments.
Judge Messitte, a Clinton
appointee, said Maryland and
Washington had sufficiently alleged that the two jurisdictions
and their residents were being
harmed by the Trump International Hotel and related operations in the nation’s capital.
Restaurants, hotels and hospitality workers “are being affected and will continue to be
affected when foreign and state
governments choose to stay,
host events, or dine at the hotel rather than at comparable
Maryland or District of Columbia establishments, in whole or
in substantial part simply be-
cause of the President’s association with it,” the judge wrote.
Judge Messitte said his ruling resolved only one preliminary issue and that other arguments for the suit’s dismissal
would need to be addressed.
White House press secretary
Sarah Huckabee Sanders declined to comment. The Justice
Department is representing the
president. “As we argued, we
believe this case should be dismissed,” a spokeswoman said.
WASHINGTON—The Treasury Department is planning
to use laws designed to address national emergencies to
block Chinese firms from acquiring advanced U.S. technology, part of a Trump administration initiative to thwart
what it sees as Beijing’s efforts to attain an economic
and military edge, according
to administration officials.
The Trump administration
is looking to use a number of
legal measures in its arsenal,
including the International
Emergency Economic Powers
Act of 1977, or IEEPA, which
gives the president broad authority in the case of an “unusual
and
extraordinary
threat,” according to a senior
official familiar with administration plans.
The law was widely employed after the Sept. 11, 2001,
terrorist attacks to impose
sanctions on other countries,
and observers say courts haven’t questioned the usage of
the law.
Gary Hufbauer a trade expert at the Peterson Institute
for International Economics,
said in a report that the strategy could give President Donald Trump “a free hand” to
address the administration’s
concerns over Chinese trade
and investment practices.
The plan to expand restrictions on Chinese investment
comes on top of both existing
export-control regulations and
a congressional effort to
strengthen national-security
approvals by the Committee
on Foreign Investment in the
U.S., a multiagency watchdog
that reviews foreign acquisitions in the U.S. for nationalsecurity risks.
Mr. Trump signaled the
new restrictions last week,
when he announced the U.S.
would levy tariffs on up to
$60 billion on Chinese imports.
The Treasury has been
working on the investment
project for several months, an
administration official said.
The U.S. would argue that Beijing’s investment rules are
fundamentally unfair to U.S.
companies and that China has
slid backward in its reform efforts. Its licensing requirements, subsidized financing,
involvement of state-owned
firms and pressure on U.S.
firms to transfer technology
are all increasingly harming
U.S. technology firms, the official said.
“The hope was that China
would develop into a fair, re-
The U.S. and China
have quietly begun
negotiations to head
off a trade war.
ciprocal and market-oriented
partner for trade and investment,” said Treasury Undersecretary David Malpass at the
Foreign Policy Association
earlier this month, foreshadowing the Treasury effort. “Instead, China’s market liberalization has stalled and even
reversed, with the role of the
state increasing.”
Despite the threats of tariffs from the U.S. and retaliation from China, the two sides
have quietly begun negotiations aimed at heading off a
trade war. If those talks bear
fruit, it is possible that none
of the restrictions being discussed will be put into effect—or only some of them,
U.S. officials say.
Myron Brilliant, executive
vice president of the U.S.
Chamber of Commerce, which
has been warning about Chinese trading practices and
technology plans, said it was
important to address Beijing
policies “that prop up Chinese
companies and harm U.S.
firms’ ability to operate in
China.” But he warned about
going too far.
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THE WALL STREET JOURNAL.
WORLD NEWS
Kim Takes First Step Onto World Stage
North Korean leader’s
diplomatic overture in
China prepares way
for summit with U.S.
Pyongyang, Beijing
Portray State Visit
In Different Lights
SEOUL—With a clandestine
trip to Beijing this week,
North Korean leader Kim Jong
Un has taken his first, tentative steps onto the world diplomatic stage.
Long shunned as a pariah
by the international community, Mr. Kim and his regime
have sought legitimacy and
recognition as a nuclear-weapons state as the country’s dilapidated economy has faced
ever-tougher sanctions.
Like his father, it took Mr.
Kim six years from becoming
leader to venture outside
North Korea. His meeting this
week in Beijing with President
Xi Jinping, conducted in secrecy after a ride on an armored train to the Chinese
capital, lays the groundwork
for his biggest diplomatic date
yet: a summit with U.S. President Donald Trump.
Mr. Trump said Wednesday
morning on Twitter that
“there is a good chance that
Kim Jong Un will do what is
right for his people and for
humanity. Look forward to our
meeting!” The president also
said that in the meantime,
economic sanctions need to be
“maintained at all cost!”
After taking control of
North Korea after his father’s
death in 2011, outsiders wondered about Mr. Kim’s grip on
power and his relative inexperience—questions that were
reinforced by his lack of direct
contact with foreign leaders,
and his apparent unwillingness to stray too far from
Pyongyang. Compared with his
father, Kim Jong Il, the current dictator had little lead
time before taking the reins.
But in three months this
year, Mr. Kim has executed a
diplomatic offensive that ex-
KCNA/KNS/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY JONATHAN CHENG
Kim Jong Un, center left, in Beijing on Monday. His visit allowed China a hand in efforts to deal with Pyongyang’s nuclear weapons.
perts say reflects growing confidence.
Last month, he sent his
younger sister to the Winter
Olympics in South Korea, and
invited South Korea’s president to Pyongyang. He hosted
senior Seoul officials at a banquet, where he extended an invitation to Mr. Trump for a
summit meeting.
This week’s journey to
China, his treaty ally, showed
the North Korean leader positioning himself ahead of a potential meeting with the U.S.
president. The visit also allowed Beijing, with which relations had soured, to play a
central role in efforts to find a
solution to the nuclear standoff.
“He’s turning his attention
toward showing that he can
play the role of international
statesman,” Jean H. Lee, a
North Korea expert at the Wilson Center in Washington said
of Mr. Kim.
In Beijing, Mr. Kim and his
wife met Mr. Xi and his wife
during a lunch that “was overflowing with a harmonious
and intimate atmosphere from
its beginning to the end,” according to North Korea’s official account. Mr. Kim also invited Mr. Xi to Pyongyang for
an official visit, which North
Korean state media said was
accepted “with pleasure”—
though Chinese state media
didn’t mention the invitation,
one of several differences that
hinted at enduring tensions
between the neighbors.
“Just looking at the body
language, he seems very comfortable meeting with Xi,” said
Jung Pak, a North Korea expert at the Brookings Institution and a former Central Intelligence Agency officer
tasked with analyzing the dictator.
Mr. Kim’s willingness to
bring his wife to dinners with
the South Korean envoys and
with the Chinese president
helps to make him “look like a
fuller leader—a three-dimensional person, not this caricature,” she said.
Mr. Kim arrived in the Chinese capital with a strengthened hand in the nuclear dis-
pute, having spent the
previous year testing North
Korea’s first intercontinental
ballistic missiles and its sixth
nuclear device. In addition, he
had already secured an agreement from the U.S. president
to meet—a diplomatic accomplishment that eluded his father and grandfather.
North Korea’s state media
portrayed the Beijing visit as
unofficial, though it made
clear that Mr. Kim was accorded the trappings of a
guest of honor, including a
motorcade, a grand banquet at
the Great Hall of the People
and gifts from the Chinese
president and his wife.
—Andrew Jeong
contributed to this article.
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BEIJING—Differences in
official accounts of North Korean leader Kim Jong Un’s
trip to China—some glaring
and others subtle—hint at enduring friction between Beijing and Pyongyang, despite
the fence-mending visit.
Wednesday’s accounts
from Chinese and North Korean state media, which serve
as official takes on such
meetings, featured a number
of discrepancies, though both
hailed the visit as a new
chapter in their countries’
friendly relations.
While Chinese accounts
focused on the two leaders’
discussions of relations and
tensions on the Korean Peninsula, North Korean accounts
played up the pageantry and
atmosphere of the visit,
which was made public only
after Mr. Kim had left.
Chinese state-media reports said Mr. Kim told President Xi Jinping that he was
committed to denuclearization and is willing to hold a
North Korea-U.S. summit.
Those remarks have yet to
appear in accounts from
Pyongyang.
While Pyongyang’s statecontrolled news agency said
Mr. Xi accepted Mr. Kim’s invitation to visit North Korea,
official Chinese accounts
didn’t mention it, saying only
that Mr. Kim hopes to “have
opportunities to meet the
Comrade General-Secretary
[Xi] regularly.”
Although both sides characterized this week’s visit as
amiable, Chinese state media
portrayed Mr. Kim as a supplicant, casting Mr. Xi as an
elder statesman exerting a
calming hand over tensions
on the Korean Peninsula.
—Chun Han Wong
.
A8 | Thursday, March 29, 2018
THE WALL STREET JOURNAL.
* ***
WORLD NEWS
Continued from Page One
U.S. divisions—about 200,000
troops—to Europe in 10 days.
The new proposal instead focuses on European allies’ ability to mobilize, with a less ambitious target of 30 days.
“The idea is to get a readiness mind-set, to identify
forces where readiness needs
to be enhanced, but spread
that out among the nations,”
said Hans Binnendijk, a former
Clinton administration official
and co-author of a report on
NATO responsiveness.
Questions about the alliance’s ability to deploy rapidly
prompted NATO last year to
put 4,600 troops on forward
deployment in Poland and the
Baltic states, near the Russian
border. NATO also has a 5,000troop spearhead force meant
to serve as quick-reaction
team to come to the aid of
those troops within 10 days.
Those forces need backup
from the 30 ready battalions,
said Alexander Vershbow, a
former NATO deputy secretary-general, because they are
deployed not to engage in prolonged combat but only to
trigger deployment of more
troops, planes and ships.
“Reinforcements are still
the indispensable element,”
Mr. Vershbow said. “And it is
DEAL
Continued from Page One
idly changing landscape.
A bid would represent
Takeda’s biggest-ever deal,
capping a string of smaller acquisitions in recent years
aimed at broadening its international footprint. Takeda,
founded in 1781 and Japan’s
largest drugmaker by revenue
and market capitalization,
needs to keep expanding overseas to make up for a slowing
market at home, analysts said.
If Takeda did nothing,
“they’d only be waiting to
die,” said Masayuki Kubota,
chief strategist Rakuten Securities in Tokyo.
Shares of Shire gained 14%
PA IMAGES VIA GETTY IMAGES
NATO
A training area in Estonia; Nato allies are stepping up readiness in the event of Russian aggression.
clear that NATO’s capacity to
reinforce is still far less than
is required.”
Even the proposed NATO
rapid-reaction reinforcements
aren’t designed to win a
large-scale conventional invasion by Russia. They are
meant instead to be deployed
if Moscow attempts a creeping annexation of a NATO
ally’s territory. The nightmare scenario for the alliance: that such an incursion
occurs when the U.S. has
committed its ready forces,
such as the Fort Bragg, N.C.based 82nd Airborne Division, to a crisis in Asia.
Building up NATO’s ready
forces would put more teeth in
the alliance’s recent deterrent
efforts. Front-line allied troops
in place would slow any incursion by Russian forces, and the
quick and sustained reinforcement of those forces with aircraft, ships and troops would
confront Moscow with a
choice: withdrawal or a high-
cost conventional war.
The push for the buildup
comes in the wake of a long
decline in European military
budgets for decades after the
Cold War, until the Russian
annexation of Crimea in 2014.
In those years, many army
units became underequipped
and inadequately trained. Until
Crimea, NATO also prodded
many countries to shed their
tank formations and invest
more in light infantry troops
suited for training missions in
on Wednesday following the
disclosure, boosting its market
value to £32 billion, or about
$45 billion. Takeda’s shares
fell about 6% in early Thursday trading in Tokyo, bringing
its market value down to
about $39 billion.
The recent rise in the yen, to
its highest level against the
dollar since November 2016,
provides a tailwind for Japanese companies looking to
boost their global presence.
The yen they earn at home can
now buy more in dollars or
pounds than just a year ago.
Takeda described its interest
in Shire as “preliminary and
exploratory.” Yet it laid out an
aggressive case for a deal, listing six motivations, including
bolstering its position in the
U.S. pharmaceutical market and
replenishing its drug pipeline.
Shire’s group headquarters
is in Ireland, and it runs its U.S.
business—which accounts for
about two-thirds of total
sales—out of Lexington, Mass.
Though best-known in the
U.S. for Adderall, the company
has more recently developed
into one of the world’s biggest
makers of drugs for rare diseases, expanding quickly under the leadership of Chief Executive Flemming Ornskov.
In a statement, Shire said it
had noted Takeda’s disclosure
but confirmed no approach
had been made, adding there
was no certainty an offer
would ensue. Takeda said that
under U.K. takeover rules, it
must announce by April 25
whether it intends to make an
offer for Shire.
News of Takeda’s interest
came just a day after GlaxoSmithKline PLC said it would
pay Novartis AG $13 billion for
its 36.5% stake in their consumer health-care joint venture.
Shire has regularly been involved in deal talks in recent
years. In 2014, a $54 billion
takeover of Shire by Illinoisbased AbbVie Inc. was called
off because of new U.S. tax
rules aimed at deterring
American companies from
moving their legal headquarters to lower-tax countries.
A deal for Shire would place
Takeda among the world’s biggest pharmaceutical companies, with annual revenue of
more than $30 billion.
—Kosaku Narioka
and Adam Clark
contributed to this article.
Afghanistan.
Now NATO is asking allied
governments to invest once
again in forces for the collective defense of Europe against
Russia, but building up those
forces will take time—and
more money.
The Trump administration
has made increasing European
military spending a headline
goal. As countries work to
boost their spending to the
NATO target of 2% of gross
domestic product, Mr. Vershbow said, they should focus on
enhancing the readiness of allied forces.
The new initiative embraces ships and planes as
well as ground troops. NATO
officials believe improving
how the alliance fights as a
joint force, combining land,
air and sea assets, is critical
to deterring any military move
by Russia.
Defense experts say having
enough fighter planes ready to
push forward is critical to
speeding NATO’s response. But
readying planes isn’t just
about allies investing in more
training and maintenance of
their fighter fleet; it also involves building up airfields
and other infrastructure.
The alliance is also working
with the European Union to
improve military mobility, so
troops, tanks, artillery and
other equipment can travel
more quickly on European
roads, bridges and railways.
Assessments of how many
of each nation’s combat units
can move quickly are closely
guarded secrets in all armed
forces.
But current and former allied officials said there is
hardly a European ally that
doesn’t have a readiness
problem.
Smaller Western European
militaries, such as Belgium
and Romania, have cut their
land forces and face calls from
NATO to create new brigades
that could contribute to a
ready force. But questions remain about whether defense
budgets will rise enough to
fund new formations.
NATO’s bigger, more reliable allies also have problems.
France’s well-trained and
equipped forces have been
badly overstretched by deployments in Africa.
On paper, Germany has the
heavy tank and artillery forces
to move into a fight, but German government watchdogs
have said the army lacks some
necessary equipment. And
while an influential report by
RAND last year said the U.K.
could quickly shift heavy
forces to a fight, it noted that
the British Army has been
shrinking.
Spending on land forces has
been under pressure as Britain
brings two aircraft carriers
into service.
Big Pharma
Top drug companies by revenue
COMPANY
2017 REVENUE, IN BILLIONS
$0
$20
$40
$60
$80
Johnson & Johnson
Roche Holding
Pfizer
Novartis
Sanofi
GlaxoSmithKline
Merck
Takeda* + Shire
AbbVie
Abbott Laboratories
*Takeda's fiscal year ends March 31
Source: the companies
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THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A9
* * * * *
WORLD NEWS
By Sam Schechner,
Jenny Gross
and Rebecca Ballhaus
Clients of the company, including Donald Trump’s presidential campaign, said Cambridge Analytica struggled to
make good on Mr. Nix’s claims.
Among the data Mr. Nix’s
team crunched was information on 50 million Facebook
users obtained and allegedly
stockpiled in violation of Facebook policies, former Cambridge Analytica worker Christopher Wylie told the New
York Times and the U.K.’s Observer this month.
The ensuing scandal has
sheared $80 billion off the market value of Facebook and led
to calls for Mr. Nix to testify
again before U.S. and U.K. lawmakers. Investigators from Britain’s data-privacy watchdog last
week searched the Cambridge
Analytica’s London offices.
The company has said it followed Facebook rules and
didn’t use the data in question
during the 2016 U.S. election
Scandal
Bowls Over
Australian
Cricket
BY ROB TAYLOR
Australia’s national sport,
cricket, is embroiled in a scandal rivaling “Deflategate”—the
controversy that engulfed the
New England Patriots for using a deflated football to gain
an advantage in the NFL.
The captain of the nation’s
cricket team, Steve Smith, and
two teammates were sent
home from South Africa after
an Australian player was
caught by cameras using sandpaper to scuff the ball during
a weekend match, a strategy
used to make it harder for opposition batsmen to hit.
Down Under’s “Tom Brady
moment” has reverberated all
the way to the top. “This has
been a shocking affront to
Australia,” Prime Minister
Malcolm Turnbull said Tuesday. “How many of us as children, how many of us as fathers and mothers have had
children who have looked up
to the Australian team, who
have looked up to their role
models, their idols?”
Cricket is held up as an embodiment of Australian national identity and fair play. It
is often said, only half-jokingly, that the two most important jobs are held by the
prime minister and the captain
of the cricket team—not necessarily in that order.
As a result, this so-called
ball-tampering scandal has
raised the unthinkable specter
of cheating, triggering something of an existential crisis
across the country.
Former Australian batsman
Jimmy Maher called it “a national day of shame.” Steve
Waugh, a former skipper, said
he had received thousands of
messages from “heartbroken
cricket followers world-wide.”
The events bear the hallmarks of the “Deflategate”
scandal, which rocked the U.S.
when New England Patriots
quarterback Tom Brady served
a four-game suspension in 2016
after being accused of conspiring to deflate footballs ahead of
the AFC Championship.
It comes as a survey last year
by Roy Morgan Research found
the number of cricketers had
fallen 10% since 2001, with people turning to sports including
basketball and baseball.
—Mike Cherney
contributed to this article.
Alexander Nix, the chief executive of Cambridge Analytica, arriving at the company’s offices in central London last week.
ing to Daniel Kreiss, an associate professor at the University
of North Carolina at Chapel
Hill who has studied political
campaigns’ use of data. People
close to the company said Mr.
Nix didn’t understand the data
work he talked about.
“The pitch was always about
getting rid of the Mad Men
style approach and moving toward understanding people’s
personalities,” said a person
who worked closely with Mr.
Nix in recent years. “That’s a
good pitch, but you have to be
able to deliver.”
Beginning in 2012, Mr. Nix
launched a series of U.K. and
U.S. companies, one of which
was Cambridge Analytica LLC,
according to corporate filings.
He attracted backing from
New York’s Mercer family,
known for financing conservative causes. Rebekah Mercer,
the daughter of hedge-fund billionaire Robert Mercer, is on
Cambridge Analytica’s board.
Most of the 20 organizations that reported having
hired Cambridge Analytica to
the Federal Election Commission also received donations
from Mr. Mercer, commission
records show. According to former officials of several campaigns, hiring Cambridge Analytica came to be seen as
almost a prerequisite for candidates seeking the Mercers’
support. The Mercers didn’t respond to requests to comment.
Mr. Nix’s clout rose significantly during the 2016 U.S.
election cycle. Three Republican presidential campaigns—
those of Mr. Trump, Sen. Ted
Cruz and neurosurgeon Ben
Carson—hired his firm, FEC
records show.
But some clients were dis-
patched a team to work with
the Trump campaign’s digital
operation in San Antonio. But
according to the people in the
company and the Trump campaign, the company didn’t perform what it touted as its expertise: building psychographic
profiles of likely voters to tailor ads to their personalities.
Instead, the company’s work
with the Trump campaign focused on placing tens of millions of dollars’ worth of digital
ads and on building data models that could predict voter
turnout and candidate preference, the people said.
“These are the things that all
campaigns end up doing,” said
Patrick Ruffini, a conservative
political strategist who runs an
analytics firm.
appointed. Cambridge Analytica built a data model for the
Cruz campaign intended to
predict which voters would
back Mr. Cruz. The campaign
tested the model in Oklahoma
and found it was less than
60% accurate, a former member of the Cruz campaign said.
The company also built psychographic models to target
voters. The campaign used the
models in three nominating
contests—Iowa, New Hampshire and South Carolina—but
stopped when testing showed
they didn’t work, the former
campaign official said.
Mr. Nix first met with Trump
advisers in May 2016, at the introduction of Steve Bannon,
who sat on Cambridge Analytica’s board, according to people
familiar with the conversations.
In the summer of 2016,
Cambridge Analytica dis-
Facebook restricts data to
brokers amid uproar.............. B4
U.K. Traces Poison to House of Former Spy
BY JENNY GROSS
LONDON—After combing
through hours of securitycamera footage and speaking
to hundreds of witnesses, British investigators said Wednesday they believe that the
nerve agent used to poison a
former Russian spy and his
daughter had been applied to
the front door of their house.
Earlier in the day, the government of Prime Minister
Theresa May stepped up its
rhetoric against the Kremlin,
which it says is likely responsible for the attack in the English town of Salisbury, saying
it would review hundreds of
visas granted to wealthy Russians living in the U.K.
The ex-intelligence officer,
Sergei Skripal, and his daughter, Yulia, were found slumped
on a park bench earlier this
month after the first known
use of a chemical weapon in
Europe since World War II.
They remain hospitalized in
critical condition.
In the wake of the attack,
the U.K., the U.S. and more
than a dozen European countries have expelled a total of
more than 100 Russian diplomats and intelligence officers,
deepening tension between
Moscow and the West. Russia
denies any involvement.
Dean Haydon, deputy assistant commissioner and senior
national coordinator for U.K.
counterterrorism policing, said
that after finding evidence the
Skripals were exposed to the
nerve agent from their front
door, “we are therefore focusing much of our efforts in and
around their address.”
Police didn’t comment on
how the poison was delivered
or by whom.
Mrs. May has pledged to
freeze Russian state assets if
they pose risks to the life or
Home Secretary Amber Rudd
said visas are being reviewed.
property of people in Britain,
but she has been criticized for
not going further, including by
imposing financial sanctions
on people with close ties to
Russian President Vladimir
Putin. Some have invested
large amounts of money in
British real estate and institutions.
Asked by a lawmaker about
the some 700 Russians who
came to the U.K. between
2008 and 2015 on wealthy-investor visas, Home Secretary
Amber Rudd said the government is reviewing individual
cases and what changes it
could make to the program.
In late 2014, the U.K. tightened visa requirements, doubling the minimum investment
to £2 million ($2.8 million)
and imposing tougher checks.
Russians were overtaken as
the program’s main beneficiaries by the Chinese in 2016.
“I have asked my officials
to look at what reforms we
might continue with and also
to take a look at previous ones
over the past few years” and
see if any actions need to be
taken, Mrs. Rudd told a parliamentary committee.
U.K. governments have historically taken a fairly handsoff approach to the regulation
of foreign money flowing into
London, which has helped support its legal, financial and
real-estate industries.
Some critics say a focus on
Russian money neglects the
wider issue of the U.K. becoming a magnet for questionable
foreign wealth.
“I really hope the U.K. government will go after all the
corrupt wealth in the U.K., not
just Russian,” said Rachel Davies, head of advocacy for
Transparency International in
the U.K.
Russia has reacted angrily
to the coordinated expulsions,
which could seriously dent its
ability to gather intelligence in
the U.S. and Europe. But on
Wednesday, the Kremlin said
Mr. Putin was still open to
holding a summit with President Donald Trump.
WORLD WATCH
FRANCE
ETHIOPIA
National Homage
For Slain Gendarme
Choice of New Leader
Aims at Reconciliation
The slain hero of last week’s
extremist attack in southern
France was honored in a daylong
national homage led by French
President Emmanuel Macron.
The coffin of Lt. Col. Arnaud
Beltrame was driven in a procession across Paris. Mr. Macron delivered a eulogy calling for national solidarity after the attack.
The president posthumously
awarded the gendarme the Legion of Honor. Schools and police stations around the country
held minutes of silence.
The tribute came amid questions about possible failures by
officials in tracking the gunman,
who had been on a watch list
before Friday’s rampage.
—Associated Press
Ethiopia’s ruling party chose a
new prime minister, selecting a
young politician from one of the
country’s most marginalized ethnic groups in a bid for national
reconciliation in the world’s fastest-growing economy.
After weeks of negotiations,
the Ethiopian People’s Revolutionary Democratic Front—the power
behind the country’s one-party
authoritarian rule—late Tuesday picked Abiy Ahmed, a 42year-old engineer, to lead the
party and the nation.
Mr. Ahmed is relatively untested, having served just one
year as a minister of science and
technology under the departing
prime minister. But he has represented the Oromos, an ethnic
group that is Ethiopia’s largest,
but most marginalized, in regional parliament.
His selection ends a process
that unnerved Ethiopia’s neighbors and investors, coming nearly
two months after the resignation
of Prime Minister Hailemariam
Desalegn. The EPRDF imposed a
draconian state of emergency
soon after the resignation.
The choice of Mr. Ahmed
could reassure those worried that
Ethiopia—a major Western ally in
terrorism and migration and the
target of large-scale Chinese investment—would succumb to
ethnic conflict.
—Matina Stevis-Gridneff
and Yohannes Anberbir
Tensions at March to
Honor Murder Victim
Tensions over the killing of an
elderly Jewish woman spilled
over during a march in Paris in
her memory, as leaders of the
far-right National Front were
met with catcalls when they
tried to join the demonstration.
Mireille Knoll was found
stabbed to death and burned
Friday at her Paris home. French
prosecutors have pressed preliminary charges against two men
for voluntary homicide motivated by the real or supposed
AIKIN DANIL/TASS/ZUMA PRESS
LONDON—Cambridge Analytica CEO Alexander Nix’s sales
pitch was simple and powerful:
his firm’s personality-profiling
ability would let politicians win
votes by tapping into people’s
deepest fears and desires.
campaign. It also suspended
Mr. Nix, pending an internal investigation, after he was caught
on video by a British broadcaster describing tactics that
included entrapping clients’ opponents with bribes and sex.
Mr. Nix said his comments
were taken out of context as he
was entertaining “a series of ludicrous hypothetical scenarios.”
Acting CEO Alexander Tayler
has told employees in recent
weeks that he thinks Mr. Nix is
unlikely to return, according to
a person close to the company.
Mr. Nix and a representative for
Cambridge Analytica didn’t respond to requests to comment.
Mr. Nix’s sales pitch boiled
down to two essential claims.
First, he said Cambridge Analytica has developed a way to
use publicly available data—on
demographics, purchases, voting history—to predict an individual’s personality traits.
Second, Mr. Nix has said,
Cambridge Analytica can make
ads more effective by tweaking
them to appeal to specific personality types—delivering an
emotional ad, for instance, to
someone disposed to resonate
with that approach.
“We can use ‘big data’ to
understand exactly what messages each specific group
within a target audience need
to hear,” Mr. Nix said in a talk
dubbed “From Mad Men to
Math Men” at a marketing
conference last year.
There is little public evidence or scholarship to show
that attempts to tailor ads
that way is effective, accord-
KIRSTY O’CONNOR/PA WIRE/ZUMA PRESS
Campaign aides say
Cambridge Analytica
CEO Alexander Nix
failed to deliver results
HENRY NICHOLLS/REUTERS
Firm’s Profiling
Of Voters Didn’t
Work, Clients Say
SIBERIA IN MOURNING: Funerals began on Wednesday for victims of Sunday’s shopping-mall fire in
Kemerovo, Russia. At least 64 people were killed, including many children.
religion of the victim, a judicial
official said.
French President Emmanuel
Macron said the suspects killed
“an innocent and vulnerable
woman because she was Jewish.”
Officials from both the National Front and the leftist
France Unbowed were forced to
pull back from the front of a
march in honor of Ms. Knoll after their leaders were booed.
National Front leader Marine
Le Pen sparked controversy during last year’s election campaign
when she claimed the French
state wasn’t responsible for the
1942 roundup of Jews, in which
more than 13,000 people were arrested and held in the Vel d’Hiv
cycling stadium to be deported to
Nazi concentration camps. Yet
she has also tried to eradicate the
party’s anti-Semitic reputation.
Marchers objected to representatives of France Unbowed
because the leftist party has
criticized Israel.
The killing of 85-year-old Ms.
Kroll has underscored rising antiSemitic violence in France. The
number of violent anti-Semitic
acts recorded by French police
rose last year to 97 from 77 in
2016.
—William Horobin
MALAYSIA
Parliament Clears
Redistricting Plan
Malaysia’s Parliament approved plans to redraw the electoral map amid protests that it
provides Prime Minister Najib
Razak an unfair advantage in
coming elections. Opposition politicians say the changes squeeze
voters in their camp into fewer
districts, giving disproportionate
weight to rural constituencies,
which tend to back the ruling
National Front coalition.
—Yantoultra Ngui
.
THE WALL STREET JOURNAL.
A10 | Thursday, March 29, 2018
IN DEPTH
Budget crunch
Medicaid costs have transformed state budgets. In 1964,
states’ top three spending items
were education, highways and
public welfare, according to
data from the Council of State
Governments. As of 2014, public
welfare, which includes Medicaid, had moved into the No. 2
position.
“Governments are spending
less on what they want so they
can spend more on what they
must spend,” says Don Boyd, a
senior research fellow at Rockefeller College in Albany, N.Y.
“There’s been a lot of crowding
out.”
Public-employee pensions
are legally protected in most
states. With Medicaid, states
can set criteria for coverage,
but then must pay for anyone
who qualifies.
“Whatever that bill is, you
have to cover it,” says John
Nixon, a former state budget di-
Michigan Gov. Rick Snyder, center, tapped John Nixon, left, to run the state’s budget and help close a $1.5 billion gap.
rector for Utah. In 2010, Michigan Gov. Rick Snyder tapped
him to run that state’s budget.
At the time, Michigan was
spending about $1.5 billion
more than it collected, Mr.
Nixon says. The governor
wanted to close the gap and
boost funding for the state’s underfunded pension and retiree
health plans, among other priorities.
Mr. Nixon couldn’t touch
Medicaid, which then took up
almost a quarter of Michigan’s
general fund. So he and lawmakers looked for savings elsewhere as they wrote the state’s
2012 budget. Eventually, they
agreed to cut $222 million from
higher education, $452 million
from K-12 education and $105
million from statutory tax revenue sharing with Michigan cities. Mr. Snyder, a Republican,
said “tough decisions” were
necessary to close Michigan’s
fiscal gap.
State and local governments
nationwide shed 286,000 employees from 2008 to 2016,
shrinking to 19.4 million, according to the U.S. Census Bureau’s public-employment survey.
Over the past two years, Mississippi closed 10 of its 95
county health clinics, eliminating 153 positions and two inpatient drug-treatment centers.
Nonprofit drug-treatment providers also lost funding.
“We have an opioid crisis going on,” says Amy Turner, who
runs a nonprofit drug-treatment center near Biloxi. Mississippi cut Ms. Turner’s grant for
treating female drug addicts by
33%.
Nationwide, state spending
on higher education and local
tax revenue sharing, adjusting
for inflation, have both declined
since 2008, according to the
Journal’s analysis. So has state
and local spending for infrastructure.
For college students, shrinking state higher-education budgets mean paying more to attend public universities. In 1980,
48 of 50 states funded their college budgets mostly through
annual appropriations of tax
revenues, not from tuition. By
2017, that was true in just 20
states, as tuition had become
the larger funding source in 28
states, according to data from
DELETE
The rising cost of Medicaid and pension obligations has strained state and local budgets
and forced public officials to look elsewhere for cuts.
Medicaid's share of federal aid
to state and local governments
Annual city and state
government contributions to
major public pension plans
70%
$120 billion
60
50
40
30
Thomas Parisot worried about
changing his mind after deleting.
social media at Topic, a New
York-based media company. He
is philosophical about the career
change. “I was barely making a
living as it was,” he says. He
now has the freedom to pursue
art without worrying about “the
network effects and fiscal considerations,” he says. That’s
good, he says, since much of the
art he chooses to work on now
is “deeply unmarketable.”
Denise Stirk, a writer and
blogger in Parkland, Fla., struggled with the decision to remove
the Facebook app from her
phone when she realized it was
interfering with her parenting.
“I love Facebook. Like a Lot,”
she wrote in a blog post on Pop-
10%
80
5
0
–5
20
10
0
0
1993
100
40
20
2000
’10
2001
–10
’05
’10
’15
1999
Sources: Bureau of Economic Analysis; Bureau of Economic Analysis (Medicaid share, infrastructure);
Public Plans Database (annual pension contributions)
the State Higher Education Executive Officers’ Association.
“For the first time in our nation’s history, we are at the cusp
of college students and their
families paying the majority of
college costs,” Robert Anderson,
the group’s president, testified
at congressional hearing in February.
For cities, the budget
squeeze means they must rely
less on state aid to balance their
books. The Lincoln Institute of
Land Policy, which tracks the
budgets of 150 U.S. cities, found
that 85 received less state aid in
2015 than they did in 2005. In
54 cities, aid declined by more
than 10%.
Last summer, a legislative
standoff over Connecticut’s
debt and pension costs delayed
the state budget and froze aid
to municipalities. In the state’s
capital, Hartford, Mayor Luke
Bronin warned he would seek
bankruptcy protection if the
city didn’t receive additional aid
from the state.
The aid finally arrived when
lawmakers reached a budget
deal in October. To find money
for Hartford, lawmakers took
aid away from other cities,
prompting some towns to
shelve infrastructure projects
and consider tax increases.
“State and local governments
made big commitments, particularly on pensions and retiree
health care, but didn’t adequately fund those liabilities,”
says Mr. Bronin, a Democrat.
Connecticut has just 31.7% of
what it needs to pay its employees’ future retirement benefits,
If you just need a break
from Facebook, you can “Deactivate” your account. It’s easy
to reactivate, and you won’t
delete any info.
Choose the downward arrow at the top right corner of
your page. Go to Settings, then
Manage Account. Scroll down
to Deactivate Your Account.
Facebook will flash a screen
of all the people who will miss
you and ask if you’re sure
about the decision. Don’t worry.
I deactivated my account and
reactivated it five minutes later.
Sugar at the time.
She didn’t close her account
completely, but since she could
read it only on her desktop,
checking it became an infrequent annoyance. In the end, she
says, it wasn’t that big a deal.
The biggest issue was people
saying in shock, “You mean you
don’t have Facebook?” she recalls. She would tell them,
“Nope, and I’m fine.” She says
she returned to Facebook recently to keep up with news
about the shootings at the local
Marjory Stoneman Douglas High
School.
For others, a Facebook divorce can weigh heavily on the
psyche. Thomas Parisot, a
Bleak picture
Per capita gross investment in
new infrastructure by state and
local governments, change from
a year earlier*
60
How Do I Delete?
THOMAS PARISOT
Continued from Page One
electoral campaign. “We take
this really seriously,” a Facebook
spokesman says. Nonetheless,
angry users are waging a movement to drop Facebook that is
spooking advertisers and worrying Wall Street.
For some, the anti-Facebook
tide is a chance to close accounts they were considering
closing anyway. Derek Sivers, an
entrepreneur and author in Wellington New Zealand, deleted his
three Facebook pages last week
because he was using them only
for promotion, and they made
him feel “icky,” he says. “My real
friends were never on Facebook.”
Still, he says he has three
new books coming out soon—
one on advice for musicians. It’s
OK—he has more than 300,000
followers on Twitter.
When Man Bartlett deleted
his Facebook account in 2012,
the New York City artist thought
he was making a statement
about the social-media giant’s
growing power. But Facebook
was one of the main ways he
reached his audience and marketed his art. When he deleted
it, he lost about 50% of his collectors, fans, curators and gallery dealers, he says.
He is now deputy director of
Sticker Shock
’05
’11
’15
THE WALL STREET JOURNAL.
according to state financial reports. A fund for teachers has
52.3%. Together, that adds up to
more than $37 billion in unfunded pension liabilities, or
about $10,300 per Connecticut
resident.
Connecticut’s unfunded pension liabilities resulted from
nearly 40 years of politicians
making promises about benefits
without adequately funding
them, according to a 2015 study
by the Center for Retirement
Research at Boston College.
After the long bull market of
the 1990s, seemingly flush with
cash, Pennsylvania, California,
New Jersey and many other
states sweetened retirement
benefits. In 2008, stock markets
plunged and those promises became harder to fund. To balance
budgets, many governments
skimped on annual pension contributions. The average funding
level of large public pensions
dropped from 100% in 2001 to
72% in 2016, according to the
Public Plans Database, which
tracks 170 large public plans.
Cost was an afterthought
when Medicaid was enacted in
1965 under President Lyndon
Johnson, who championed free
health care for the poor and elderly as part of his “Great Society” program. “I’ll go a hundred
million or a billion on health or
education,” Johnson told his
vice president in a March 1965
phone call, according to a recording in his presidential library. “I’ll spend the goddamn
money. I may cut back some
tanks, but not on health.”
The Medicaid legislation
didn’t levy taxes to pay for the
program. Most states copied
that approach, tapping general
funds as the main revenue
source and sharing some costs
with local governments.
Cost wasn’t a problem in the
1960s, when health care wasn’t
as sophisticated. “People used
to go to the hospital to die back
then,” said Joseph Califano,
who served as President Johnson’s chief domestic policy aide
in 1965. As treatments and longevity improved, many states
also expanded Medicaid eligibility. Enrollment and costs rose.
Since 1967, the state and local share of Medicaid has grown
Once you deactivate, people
can’t find you on search, and
your friends will see your name
in their friend list labeled “This
account has been deactivated.”
Keep in mind, this move
doesn’t deactivate Facebook’s
Messenger app.
If you are ready to get serious and truly “Delete,” I suggest you first download a copy
of your Facebook data—which
includes pictures, posts, messages, timeline and then some.
Go to the same General Account Settings page where you
can “Deactivate” and scroll to
the bottom of the choices.
Facebook says it delays de-
letion “a few days after it’s requested.” It also says it takes
90 days “to delete data stored
in backup systems,” during
which time your account will be
inaccessible. And things that
aren’t part of your account—
such as messages you’ve exchanged with friends—don’t
disappear when you delete.
Once you’re ready to pull
the plug, go to Facebook’s Help
Center, which is under the
question mark symbol. From
here, chose Managing Your Account, then Deleting Your Account. Follow the instructions,
and you’re done. Really done.
—Katherine Bindley
France-based web developer, decided to leave Facebook at the
end of 2014 because he had begun to feel like he was “consuming people like you consume
news,” he recalls.
But the decision was fraught.
What if he was being impulsive?
What if he changed his mind?
“It would be like, ‘I’m going vegan,’ and then two weeks
later saying, ‘oh, now I’m eating
meat again,’ ” he says.
What would that say about
his attitude toward his friends?
Delete the data and then “you’re
digitizing your friendships
again, trying to re-create them,”
he remembers thinking.
As he started deleting his ac-
count, the social-media giant
tormented him with warnings
that aggravated his doubts. Was
he sure he wanted to leave? It
showed pictures of friends he
would no longer be connected
with. At one point, he remembers thinking: “Oh s—, maybe
I’m making a mistake and my
life really will be over.”
A commitment to leave takes
emotional strength, he says, because Facebook “gives you the
feeling you are entering something that’s really not normal.”
He finally pulled the trigger
as he was about to take off for a
2014 New Year’s Eve party. Almost immediately, he felt the
sting of life without Facebook.
MICHELLE MCLOUGHLIN FOR THE WALL STREET JOURNAL
Continued from Page One
Those costs are outpacing
growth in tax revenue year after
year. In 2016, state and local
governments collected about
$136 billion more in taxes than
they did in 2008, adjusting for
inflation. Two-thirds of those
additional dollars went to fund
pensions and Medicaid, according to a Wall Street Journal
analysis of Commerce Department spending data.
“The more we stare at the
data, the more we realize all
roads lead back to Medicaid and
pensions,” says Dan White, a director at Moody’s Analytics who
has studied the issue.
The
resulting
revenue
squeeze is making it harder for
governments to pay for core
services such as education, infrastructure, police and fire protection.
It also is fueling bitter state
budget battles. Twenty-two
states faced budget shortfalls in
2017. Ten couldn’t agree on a
new budget before the start of
their next fiscal year. Illinois’s
credit rating was downgraded
nearly to junk status.
To save money, states are
sending less aid to cities. Many
cities, in turn, are increasing
fees and fines on everything
from garbage collection to parking tickets. Others, such as
Hartford, Conn., have teetered
on the brink of bankruptcy.
The cash crunch is likely to
get worse. Federal actuaries
predict that Medicaid’s annual
cost, which was $595 billion in
2017, will exceed $1 trillion in
2026. States and many localities
pay about 38% of that tab. The
remainder is covered by the
federal government.
Policy makers in Washington
have talked about revamping
entitlement programs such as
Medicaid, but so far their efforts have gained little traction.
That leaves it up to states to try
to contain spending—and make
do with less.
Nearly 70 million Americans,
about one-fifth of the population, depend on Medicaid for
health coverage, including more
than 28 million children. The
biggest financial beneficiaries
are the disabled, the elderly and
poor working-age adults.
AL GOLDIS/ASSOCIATED PRESS
BUDGET
Hartford Mayor Luke
Bronin said the city
might have to seek
bankruptcy protection.
at a compound annual rate of
about 7%, exceeding the 3% annual growth in their tax revenues, adjusting for inflation, according to the Journal’s
calculations.
The math can overwhelm
states when they hit a rough
patch in tax growth. Declining
tax revenue is what led to Michigan’s budget cuts in 2011.
Today, the state is doing better. It has a “rainy day” fund of
$889 million and is gradually
increasing
transportation,
higher-education and K-12 funding. Michigan even expanded
Medicaid under the Affordable
Care Act, bringing health coverage to an additional 675,000
adults through federal matching
funds that President Donald
Trump wants to scale back.
John Walsh, the state budget
director, says Medicaid expansion has been “physically
healthy for the individuals and
financially healthy for the
state,” since it helps lower
Michigan’s
uncompensated
health-care costs. One out of every four Michiganders now benefits from Medicaid.
The financial picture is
bleaker for many Michigan cities, including East Lansing,
home of Michigan State University. Since 2009, annual state
funding for the city and the
school has fallen by about 17%
each, adjusting for inflation. To
offset the cuts, the university
has increased tuition repeatedly. The city, which is struggling with almost $125 million
in unfunded pension and retiree
health-care liabilities, has been
cutting services because state
law caps property tax increases.
Things came to a head last
summer when East Lansing
asked MSU to pony up $100
million over 20 years to help
shore up the city’s underfunded
pension plan. The alternative,
the city said, was asking voters
to approve a 1% income tax that
would hit university employees
and working students.
After negotiations went nowhere, the city brought the income-tax proposal before voters
in a referendum last November.
Undergraduate student body
president Lorenzo Santavicca,
21 years old, said the measure
would take away from his generation. “We are getting the
short end of the stick because
of commitments that were
made years ago,” he said.
When his 53-year-old father
attended Eastern Michigan University in the 1980s, state support for higher education was
so generous that he was able to
cover his tuition with the
money he made raking hay on
his grandmother’s farm during
summers and selling it for $3 to
$4 a bale. He graduated debtfree in 1987.
Mr. Santavicca says that to
pay for his four years at MSU,
he and his father have borrowed
about $63,000. He expects to
graduate this spring with a degree in international relations
and would like to someday work
in government, but he is unsure
he can afford to.
On Nov. 7, East Lansing residents shot down the income-tax
referendum, forcing the city to
debate what services to cut to
save money for the pension obligations.
He had forgotten to write down
the address of the party and
didn’t know where to go.
Mr. Carter, the biotech product manager in Westbrook,
struggled with the decision. If
he quit Facebook, he might have
more time, he reasoned. On the
other hand, “my [social] circle
will shrink dramatically.” He
would miss news from past acquaintances and distant relatives. They would “all be gone
the minute I hit the delete key,”
he says.
As one friend wrote to him,
“It’s like that awful thing that
happened when we were teenagers on the phone…‘You hang up
first. No, you hang up first.’ ”
For now, Mr. Carter has decided to take a half step. He dialed his Facebook use way back
and intends to post only occasionally to keep in touch with
relatives. He suspects, though,
that he will be postponing the
inevitable, because “it will always be there begging for my
attention.”
The validation Facebook provides is a strong temptation. At
last count, Mr. Carter’s post
about why he hadn’t yet deleted
Facebook had 60 “Likes,” “Hahas” and “Loves,” plus 12 comments.
One, from his friend David: “I
was going to delete FB, but then
I couldn’t comment on this to let
you know I agree with you, and
disagree…”
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A10A
NY
* *
GREATER NEW YORK
Cuomo Faces Flap Over Harassment Talks
Female senator says
the governor hasn’t
kept pledge to include
her in all-male meetings
BY MIKE VILENSKY
ALBANY—As Gov. Andrew
Cuomo and three male lawmakers meet to hash out a state sexual-harassment policy as part of
the annual budget, they are facing calls to include the state’s
only female caucus leader in the
talks.
Mr. Cuomo vowed in February to include Senate Minority
Leader Andrea Stewart-Cousins,
a Democrat, in the otherwise
all-male group amid calls for her
inclusion from women’s-rights
groups. But with just a few days
left before the budget deadline,
Ms. Stewart-Cousins said Mr.
Cuomo hasn’t followed through
on that pledge.
“I’m not in the meetings, and
I have not been included in
other ways,” she said in an interview this week.
Asked about Ms. StewartCousins’ exclusion, Mr. Cuomo
on Wednesday told reporters
that a “working group” of
women in government was
helping to negotiate the sexual-harassment policy and that
her caucus had a representative to the group.
Mr. Cuomo’s counsel, Alphonso David, said that he has
met with two attorneys who
represent Ms. Stewart-Cousins’
caucus in recent weeks to
negotiate the
budget, and
that
Mr.
Cuomo has
Andrea
spoken with
Stewart-Cousins her by phone.
“That’s not
a negotiation, that’s a briefing,”
Ms. Stewart-Cousins said, adding that Mr. Cuomo only spoke
to her about “generalities.”
Mr. David said Ms. StewartCousins hasn’t been included in
the four-way talks among legislative leaders because those
have historically included only
majority conference leaders. “If
a woman was representing a
[legislative] majority, that
would be great,” he said.
Ms. Stewart-Cousins’ supporters say this year is different
because sexual-harassment policy is expected to be part of the
budget, and a woman’s voice
should be at the table.
Of the four men in the group,
Senate Majority Co-Leader Jeffrey Klein, a Bronx Democrat, is
under state investigation for allegedly sexually harassing a former staff member. Mr. Klein has
denied kissing Erica Vladimer,
the former staffer, and said he
welcomes the probe.
Meanwhile, Mr. Cuomo is being sued for allegedly ignoring
complaints that his former aide
sexually harassed Lisa Marie Cater, a former state employee.
Mr. Cuomo’s office has said it
investigated Ms. Cater’s claims
but she was uncooperative.
Lawmakers Near
Budget Deadline
New York lawmakers on
Wednesday continued haggling
over the state’s $160 billion
budget, with issues including a
possible government pay raise
added to the mix.
They are running up
against an April 1 deadline, but
Gov. Andrew Cuomo said lawmakers are expecting to leave
Albany for religious holidays on
Friday and he wants the budget passed by then.
The governor told reporters
that he wanted certain highranking state government emThe other two men at the
budget meetings are Senate
GOP Leader John Flanagan, of
Long Island, and Democratic
Assembly
Speaker
Carl
Heastie, of the Bronx.
ployees to be paid more and
that the budget could establish
a commission to evaluate compensation for both government
workers and legislative salaries.
A similar commission ruled
against pay increases in 2016,
with Mr. Cuomo’s appointees
outvoting legislative appointees.
Mr. Cuomo suggested, however, that he didn’t believe lawmakers deserve a raise if they
don’t pass the budget on time.
Other issues still being negotiated among the GOP-led
Senate and Democratic-led Assembly include a tax overhaul
to offset the effects of the
federal-tax law and new laws
regarding sexual harassment.
Ms. Vladimer and a group of
other women who said they
were sexually harassed in Albany by state officials wrote a
letter to Mr. Cuomo earlier this
month urging him to include
Ms. Stewart-Cousins in the leaders’ meetings.
A spokesman for the Senate
GOP said female members of its
conference have been “very involved on this issue,” pointing
to legislation this year to end
taxpayer settlements for sexual
harassment.
The talks are complicated by
the power dynamics of the state
Senate. Republicans hold power
in a conference that includes
eight Democrats who caucus
with the GOP. But under pressure from liberal advocates, Mr.
Cuomo earlier this year backed
a deal in which Democrats could
reclaim control of the Senate if
they win a special election on
April 24 that would also require
the eight Democrats to caucus
with their party.
Asked if she would include
minority conference leaders in
budget talks should she become
a majority leader, Ms. StewartCousins said that decision appears to rest with the governor.
“It’s not my room,” she said.
BY CORINNE RAMEY
BRENTWOOD, N.Y.—On a
recent chilly March afternoon,
Federal Bureau of Investigation agent Geraldine Hart and
Suffolk County Police Lt.
Thomas Zagajeski drove
around the Long Island police
precinct where the gang MS-13
is linked to at least 10 murders
within the past two years.
“My guys,” said Ms. Hart, get
much of their gang intelligence
through proffers, or when gang
members share information
with prosecutors in exchange
for shorter prison sentences.
“My guys,” said Lt. Zagajeski,
who leads the Suffolk County
police gang team, get most of
Geraldine Hart has
been tapped to lead
one of the nation’s
largest suburban forces.
their intelligence on the street.
Ms. Hart, who heads the
FBI’s Long Island office, said
she hopes their teams can
work more closely together. “If
you guys can trust each other
that’s half the battle,” she said.
Ms. Hart, 50 years old, is
the nominee for commissioner
of the Suffolk County Police
Department, whose approximately 2,500 members place it
among the largest suburban
police forces in the U.S. If confirmed by the county’s legislature in April, she would make
a rare jump between two
agencies that have had a fractured relationship for years.
Nominated by Suffolk
County Executive Steve Bellone, Ms. Hart would be the
first woman to hold the job.
Her nomination comes as
Suffolk County’s battle against
MS-13 is drawing national attention, with President Donald
Trump visiting the area last
summer and pledging to deport
gang members, many of whom
have roots in El Salvador. It
also comes on the heels of what
county officials have called a
crisis in local law enforcement.
In 2016, former police chief
James Burke pleaded guilty to
a civil-rights violation and
conspiracy to obstruct justice.
Federal prosecutors said he
beat up a suspect accused of
stealing his duffel bag, which
contained pornographic videos
and sex toys, and then sought
to cover up his actions.
Former Suffolk County District Attorney Thomas Spota
and Christopher McPartland, a
prosecutor who ran the office’s
government-corruption unit,
have been accused of federal
crimes related to the incident’s
coverup. An attorney for Mr.
McPartland declined to comment. A lawyer for Mr. Spota
didn’t respond to a request for
comment. Mr. Burke is serving
a 46-month prison sentence.
Ms. Hart said as commissioner, her priorities would include working to address the
opioid epidemic, which killed
333 people in Suffolk County
in 2016, compared with 188 in
neighboring Nassau County.
HEATHER WALSH FOR THE WALL STREET JOURNAL (2)
FBI Agent Poised
To Take Reins
At Suffolk Police
Geraldine Hart, who has been touring local police precincts and facilities, received a demonstration on bomb-detection equipment.
The crisis, she said, is a public-health issue and not just a
law-enforcement problem.
When an officer sees a drug
user, “in the past it would just
be another collar,” she said. “But
is it now a better opportunity
for us to identify them as someone eligible for treatment?”
Ms. Hart said she wants to
see school programs expanded
to educate teenagers about the
dangers of opioids. To combat
MS-13, she said she wants to
better aggregate and disseminate intelligence and work to
prevent young people from
joining gangs.
The daughter of a New York
Police Department sergeant,
Ms. Hart grew up in Suffolk
County. She became interested
in the FBI during a gradeschool trip to the agency’s
Washington, D.C., headquarters.
“My fifth-grade dream was to
be an FBI agent,” she said.
Ms. Hart graduated from St.
John’s University School of Law
in Queens. In 1996, she joined
the FBI in New York City,
where as an agent she worked
on health-care fraud and organized crime matters. Among
her cases was that of the socalled mafia cops, two NYPD
detectives who did work for
the Lucchese crime family. Both
were sentenced to life in
prison. In 2014, she took charge
of the FBI’s Long Island office.
When her nomination was
announced earlier this year,
the headlines about her gender took her by surprise.
While the roughly 30-member
FBI Long Island Gang Task
Force is mostly male, being a
woman has never been an issue, she said. She believes she
gained the respect of her coworkers because she put in
years as a case agent.
In an interview, Mr. Bellone
said Ms. Hart is a steady, serious consensus builder. When
Mr. Burke was police chief, she
helped bridge the gap between
police and the FBI by quietly
finding officers and agents who
would work with each other on
an unofficial basis, he said. “I
think she’s never thought of
herself as a woman leading
men,” Mr. Bellone added.
William Sweeney Jr., assistant director in charge of the
FBI’s New York division, recalled watching Ms. Hart when
the authorities last year
charged MS-13 members for
the killings of two teenage girls
in Brentwood. “I remember everybody was focused on the indictments, and I remember her
saying she needed to meet
with the families,” he said.
“Putting someone first like
that makes a big difference.”
To prepare for her new job,
Ms. Hart has been touring local police precincts and facilities. On that recent afternoon,
she checked out helicopters,
drones and a bomb-disposal
robot at a regional airport.
Asking detailed questions in
her Long Island accent she
broadcast local authenticity
and knowledgeable authority.
‘Tina Fey Factor’ Boosts Preview Sales for ‘Mean Girls’
JOAN MARCUS
BY CHARLES PASSY
The show tops many favorites.
It’s mean season on Broadway.
“Mean Girls,” the musical
based on the 2004 movie of
the same name, has drawn capacity crowds and grossed
nearly $2.6 million during the
first two weeks of previews before its official opening on
April 8, according to trade
group Broadway League.
The show is topping many
long-running favorites at the
Broadway box office. For the
seven-day period ended Sunday, it grossed $1.26 million,
which put it ahead of “Beautiful,” “Come From Away,”
“Kinky Boots,” “School of
Rock,” “The Book of Mormon,”
“The Phantom of the Opera”
and “Waitress,” among other
hit musicals, for the week.
Broadway insiders and ob-
servers say the show’s early
success speaks to the enduring
popularity of the movie, a
sharp-eyed take on the contemporary social landscape for
high-school girls. But just as
important, they say, it speaks
to the broader popularity of
Tina Fey, who wrote the
screenplay for the film and the
book for the musical. Ms. Fey
has been heavily involved in
bringing “Mean Girls” to
Broadway.
“The Tina Fey factor is a
major one,” said Chris
McKittrick, a writer with Daily
Actor, a website that covers
the performing arts.
Ms. Fey, a writer and actress
who gained fame on “Saturday
Night Live,” has become a popculture juggernaut behind a
range of TV and film projects.
She is also the author of the
best-selling book “Bossypants.”
“Mean Girls” isn’t the only
show that is off to a strong
start in previews. “Harry Potter and the Cursed Child,” the
much-anticipated
two-part
play that brings the world of
Harry Potter to Broadway, took
in $1.54 million in its first
week, according to the Broadway League. The production,
which opens on April 22,
played to sold-out crowds for
the week.
OYSTER PERPETUAL
sky-dweller
rolex
oyster perpetual and sky-dweller
are ® trademarks.
.
A10B | Thursday, March 29, 2018
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Manhattan Apartment Market Sags
Buyers deterred by high asking prices for new luxury units but developers are slow to respond
NEW YORK CITY
BY JOSH BARBANEL
Racial Divide Shows
In First Lady’s Poll
A Quinnipiac University poll
Wednesday found that 57% of
black voters approve of the job
Mayor Bill de Blasio’s wife is doing as first lady, compared with
39% of white voters. Among
Hispanic voters, 47% approved.
The poll comes weeks after
Chirlane McCray said she is considering running for elected office. Ms. McCray has taken an
increasingly high-profile role in
her husband’s administration.
Earlier this month, Mr. de Blasio said he believed she should
be paid for her work. A slight
majority of voters, 46%, said Ms.
McCray should be paid for her
work on behalf of the city, compared with 45% who didn’t.
—Mara Gay
MICHAEL NAGLE/BLOOMBERG NEWS
Sales of Manhattan apartments eased during the first
quarter to the slowest pace
in five years, according to an
analysis by The Wall Street
Journal.
Brokers said sales were
damped by a slowdown in
closings in new luxury buildings, as well as a rebellion
by condo buyers against high
asking prices.
PROPERTY
As sales
slowed, the
number of
available listings rose, compared with the same period
last year.
“I think prices have gone
up too far, and there is
straight-up buyer resistance,” said Donna Olshan, a
broker who tracks contracts
signed in the luxury market.
“It has slowed the market
down.”
This was especially true in
new developments and expensive older buildings, brokers said.
Overall, apartment sales
were down more than 10%
compared with the first
quarter of 2017, according to
a Journal analysis of city records of closed sales. That is
the slowest pace since the
first quarter of 2013.
Sales of co-ops, which include many lower-priced
apartments, fell only slightly,
by 2.3%, but sales of new
condominiums were down by
more than 35%.
Some of the decline in
closings of new condominium sales reflect the vagaries
of construction schedules.
But brokers said it also follows a slump in the pace of
contract signings—especially
on new high-end developments—that continued for
much of 2017.
Last year, many market
analysts attributed the slowdown to uncertainty over
governance in Washington,
concerns about potential
conflicts around the world or
GREATER NEW
YORK WATCH
CONNECTICUT
GOP Urged to Revisit
Vote for Top Justice
Apartment sales in the first quarter were down more than 10% compared with the same period in 2017, the slowest pace since 2013.
worries about changes to
federal tax laws. More recently, they said, many sellers of individual apartments
have made deep cuts in asking prices, to make deals in a
less favorable environment.
Developers, however,
faced constraints from lenders and equity partners, and
are slower to cut prices on
new apartments, Ms. Olshan
said.
Median prices of the
apartments that sold fell
slightly, by 1.5%, from the
same quarter in 2017. But average prices dropped by 10%
in the same period.
The Journal’s analysis,
based on sale documents
filed with the city’s Department of Finance as of March
23, put the median price of a
Manhattan apartment at
$1.095 million, about 8% below the all-time peak price
recorded in the second quarter last year.
The median price for a
condominium in the first
quarter was $1.625 million,
down 4.6% from the yearearlier quarter. The median
price of a co-op was
$810,000, up 7.3% during the
same period. Sales of co-ops
above $4 million rose by
more than 30%, while sales
below $1 million were down
7.4%.
Pamela Liebman, president of the Corcoran Group,
said these numbers show
there is plenty of activity in
the market, but only if sellers price their properties
properly. “We have plenty of
good stories where there are
still bidding wars and stories
where things don’t sell because they are just overpriced,” Ms. Liebman said.
“Buyers are much more
aggressive, and in a lot of
circumstances they are getting what they want,” she
added. “The good news is
there are a lot of buyers, and
they have plenty of cash and
are ready to make deals.”
Many sales that closed
during the first quarter were
negotiated last year, but
there are some signs that
weakness is continuing.
The number of contracts
signed on Manhattan properties priced at $4 million or
more fell 15% in the first
quarter, compared with the
first quarter of 2017, according to data compiled by Ms.
Olshan. Many of those won’t
close for months. Ms. Olshan
found the average price drop
on these properties was 10%
from the original asking
price.
The top sale in the first
quarter to date—a red-brickand-limestone mansion on
East 69th Street near Central
Park—illustrates this pattern
of price cutting. The house
sold for $39 million in midMarch. It was listed for as
much as $55 million in 2016,
before several price cuts. It
had previously sold for $48
million in 2011.
Sales inventory is also increasing. A new report by
Brown Harris Stevens found
that inventory in Manhattan
is up 14% in March, compared with a year earlier.
The biggest increase in supply is among studio and onebedroom apartments.
A day after the Connecticut
Senate rejected Gov. Dannel
Malloy’s choice to lead the state
Supreme Court, Democratic lawmakers on Wednesday asked
their GOP colleagues to reconsider their vote.
State Sen. Martin Looney, the
top-ranking Democrat in the
chamber, called on at least one
of the 19 lawmakers that voted
against confirming Justice Andrew McDonald as chief justice
of the state’s highest court to
have a change of heart. That
would effectively cancel the vote
under Connecticut Senate rules.
Eighteen Republicans and one
Democratic senator voted no on
elevating Justice McDonald, who
has served on the state Supreme Court since 2013, to the
top spot.
“The State Senate already
voted on this issue,” said State
Sen. Len Fasano, the chamber’s
top-ranking Republican. “Both
Republicans and Democrats
voted against the governor’s
nominee. The vote is done.”
—Joseph De Avila
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A11
LIFE&ARTS
Nonstop Growth
Baltimore Flies West
New airlines, new competitors and customers’ eagerness to avoid connections have led to significant growth in transcontinental flights in recent years.
Airlines have added several nonstop
transcontinental flights at BaltimoreWashington International Thurgood
Marshall Airport in recent years.
Number of city pairs linked with direct flights in 2017 compared with 1982
1982
2017
Flights per week from Baltimore to ...
July 2018
July 2013
Los Angeles
41
27
San Diego
35
14
Seattle
21
13
Oakland, Calif.
20
0
San Francisco
20
13
Portland, Ore.
Daily nonstops
53
Daily nonstops
16
63
14
321
Routes
0
San Jose, Calif.
7
0
Sacramento, Calif.
7
0
Routes
Sources: Airline/Aircraft Projects Inc.; Maryland Aviation Administration
THE MIDDLE SEAT | By Scott McCartney
The Rare Case Where
Airlines and
Passengers Both Win
What the surge of nonstop coast-to-coast flights says about the state of
flying in the U.S., and why you can expect even more of it
American all swallowed
about $9,100 worth of
smaller competitors and
fuel on the same trip;
closed hubs in the midfor a 737-800 MAX, fuel
dle of the country like
costs about $7,800.
Cleveland, Cincinnati
Third, population
and Memphis, Tenn.,
shifts have moved more
smaller airlines saw oppeople to the East Coast
portunities to pick up
and West Coast, boostpassengers by offering
ing traffic at lots of
nonstops.
coastal airports.
United has the most
“We’re going through
coast-to-coast flights,
a new phase in the inMr. Jenks says. But in
dustry,” says John
1997 it flew 41% of all
Kirby, Alaska’s vice
transcon trips, compresident of capacity
pared with 25% this
planning. Airlines are
year. Alaska, with its
now financially healthy.
Virgin America acquisiDeeper pockets mean
San Diego ranks among the cities to see a boost in
tion, now offers 20% of
they can invest in new
transcontinental U.S. commercial air traffic.
transcon flights; JetBlue
markets.
15% and Southwest 4%,
Los Angeles-Orlando
Mr. Jenks says. Spirit and Frontier
The newest versions, the 737 MAX
is perhaps the most hotly conare adding routes, too.
and the A320neo, are even more
tested route in the country, with
“We’re not through with this ex- fuel efficient, making it cheaper
six airlines going head-to-head.
pansion,” Mr. Jenks says. He
for airlines to fly transcon.
The number of travelers flying
thinks discounters will launch
Second, fuel is relatively inexthat route nonstop has increased
more coast-to-coast flights, which
pensive, lowering trip costs. That
more than 15% each of the past
will trigger more flights from com- makes many long flights profitable
three years.
petitors. “These markets are too
even with low fares.
Virgin America had the smallest
important for the big guys to igIt costs about $12,000 at today’s market-share—its new owner
nore.”
prices to fly a Boeing 757 2,600
Alaska decided it will drop that
There are three big facilitators
miles, according to International
route in July. Alaska added 44 new
of the transcon boom.
Civil Aviation Organization data.
routes in 2017 and Virgin America
First, smaller jets like the BoeWith more seats to fill than a 737,
added 38, so dropping Los Angeing 737 and Airbus A320 and A321
it is poorly suited for thinner
les-Orlando was a minor change,
have coast-to-coast nonstop range.
routes. A 737-800 would burn
Alaska’s Mr. Kirby says.
SAM HODGSON/BLOOMBERG NEWS
BALTIMORE’S AIRPORT used to
beg airlines for more nonstop
flights to the West Coast, but carriers said no. Now BWI may have
too many on some routes.
Southwest Airlines flies nonstop
to seven West Coast cities from
Baltimore-Washington International Thurgood Marshall Airport.
Alaska flies to five West Coast airports from BWI, Spirit to four. You
can pick from five daily flights to
San Diego on three different airlines.
“We have more service to San
Diego than we ever imagined,”
says Ricky Smith, the airport’s
chief executive.
Coast-to-coast flights linking
secondary cities are letting travelers in places like Baltimore, San
Diego, Seattle, Orlando, Fla., and
Oakland, Calif., bypass midcontinent hubs.
There were 158 daily transcontinental nonstops 20 years ago,
mostly between the New York area
and Los Angeles and San Francisco. Now there are 321 daily nonstops across the country, linking
airports as small as Charleston,
S.C. And more are coming.
Fuel costs, more efficient new
planes and population shifts have
let smaller airlines play in the airline big leagues. Transcon flights
carry high percentages of business
travelers and garner loyalty from
customers because they shrink the
country in travel time. For airlines,
they are high-profile, high-risk and
high-reward. “These are really important markets,” says Marty St.
George, JetBlue executive vice
president of commercial and planning.
Coastal travelers have benefited
not only from the greater convenience of more nonstop flights, but
also more fare competition, even
as the industry has consolidated.
Industry consultant Craig Jenks,
president of Airline/Aircraft Projects Inc., thinks mergers among
big airlines have created more
fragmentation of coast-to-coast
flying. While Delta, United and
Mike Sudal/THE WALL STREET JOURNAL.
JetBlue says financial results on
transcon routes often trailed the
rest of the airline’s network, especially when fuel prices were high.
That changed in 2014 when
JetBlue added its Mint cabin—lieflat seats with 15-inch seat-back
touch screens and meal service.
The added revenue from premium
passengers who typically pay $549
to $1,639 each way turned
transcon routes into profit machines, Mr. St. George says.
The airline has engineered a
transcon surge since 2014. The
New York-based carrier grew to
27% of passengers flying between
New York-Kennedy and Los Angeles International last year, up from
15% in 2014, according to
PlaneStats.
Alaska doesn’t offer lie-flat
business-class like Delta, United,
American and JetBlue. Other carriers say it’s critical to profitability
for long-haul flights. But Mr. Kirby
says Alaska doesn’t want to get
into that fight. Instead, Alaska is
updating its domestic first class
with new seats and is content to
use its first-class cabin largely as
an upgrade inducement for frequent fliers. “We’re old-school in
how we treat our elites,” Mr. Kirby
says.
All-coach Southwest says it has
added coast-to-coast flights where
it’s the largest airline at one end
or both. The airline, traditionally a
short-hop carrier, isn’t wild about
transcontinental flying because it
takes up so much aircraft time.
But local business and leisure
travelers want to get to the other
coast nonstop, and Southwest has
found it needs to stretch to keep
customers loyal. “We’ve added it
methodically where it makes
sense, not as a surge,” says Andrew Watterson, chief revenue officer.
One advantage of transcon
flights: Adding nonstops opens up
seats on shorter Southwest flights,
because passengers who would
have stopped at one or two airports are now flying straight on.
TELEVISION
‘JESUS CHRIST
SUPERSTAR’
IN A LIVE
TV REVIVAL
SINCE ITS BIRTH in 1970 as a rock-opera
album, “Jesus Christ Superstar” has
taken form on Broadway, in a feature
film, thousands of community productions, a hit concert tour with a
Jesus chosen via reality show, and a
failed concert tour starring former
members of the Sex Pistols and
Destiny’s Child.
Somehow there’s room for another first in the musical’s 48-yearold existence, this time as a live production on broadcast television.
Airing on NBC in prime time on Easter
Sunday, the show features stars from across
the spectrum of pop music (John Legend as
Jesus, Sara Bareilles as Mary Magdalene, Alice Cooper as King Herod) and musical theater, including “Hamilton” star Brandon Victor Dixon as Judas.
The once-controversial rock opera about
NBC (2)
BY JOHN JURGENSEN
Above, John Legend will play Jesus in the live NBC production, with an ensemble cast; left, Alice Cooper as King Herod.
the last week of Jesus’ life, written by
lyricist Tim Rice and
composer Andrew Lloyd
Webber, adds to NBC’s unlikely repertoire of musicals. Starting with “The Sound of Music Live!” in 2013,
the broadcaster mounted a new exclamationpointed production every year: “Peter Pan,”
“The Wiz,” “Hairspray.” A “Bye Bye Birdie”
with Jennifer Lopez is expected next year.
Networks, including Fox, have used the
mix of classic show tunes, big stars and the
without-a-net element of live TV to try to
harness mass audiences that now tend to
gather only for major sports showdowns
and rare television events. They’ve had
mixed results in ratings and execution.
Led by NBC Entertainment chairman and
theater buff Robert Greenblatt, producers
choose musicals based on name recognition,
their ability to attract a heavy-hitting cast
and the most important factor: “Is it appropriate for a family to gather around and
watch the show together,” says executive
producer Neil Meron, who has helped over-
see all of NBC’s live musicals.
Though it’s a staple, “Superstar” takes
the broadcaster into somewhat edgier territory. “Sound of Music” had its Nazis and
“Hairspray” its racial tensions. “Superstar”
is, of course, the first NBC musical that will
enact a crucifixion.
“Superstar” ranks as one of the most influential pop-culture phenomena of the
early 1970s. Like The Who’s “Tommy,” it
was among the first rock operas, and introduced funk guitars and gravelly vocals into a
Please see SUPERSTAR page A12
.
THE WALL STREET JOURNAL.
A12 | Thursday, March 29, 2018
LIFE & ARTS
TELEVISION
A New Beginning for ‘Howards End’
Now a four-part miniseries on Starz, the 1910 novel’s themes ‘are always with us,’ screenwriter Kenneth Lonergan says
BY CARYN JAMES
tween Margaret and Henry. “He’s
got a friendly, unmalicious quality
in the novel that I probably made
a bit more of,” Mr. Lonergan says.
Casting Mr. Macfadyen was crucial, says Ms. Macdonald. “Henry
needed not to be a sad old person.
He has to have swagger. The Wilcoxes are all incredibly confident,
and it’s very seductive.”
Henry is easily demonized but
also given his due. “He’s insensitive, he’s a man of action and not
of thought,” Mr. Lonergan says,
“but he also is engaged in what really makes the world run,” which
Margaret admires.
The question of how money affects character runs through all
the novel’s relationships, Mr. Callender says, even more than “a
traditional upstairs-downstairs
view of class” does. When Margaret tells Henry that he lacks poetry, “he challenges her and says
he sees poetry in a different way.”
Ms. Macdonald deliberately
worked against the staid visual
style of many period dramas. “I
tried to keep the camera moving,
which gives a physical energy,” she
says. And she rooted each scene in
a character’s point of view, most
often Margaret’s, “rather than sitting back and showing off all your
carriages and long dresses.”
SUPERSTAR
Continued from page A11
genre where the unbridled rock sound was
still viewed as heretical. It also brought
biblical icons down to earth, especially Jesus. First embodied by Deep Purple singer
Ian Gillan, Christ was reimagined as “red
blooded and full of spunk, not some bloke
in a white robe clasping a baby lamb,”
wrote Mr. Lloyd Webber in his recent
memoir, “Unmasked.”
It was released first as a double album,
which was Billboard’s best-selling album of
1971, topping landmark releases from that
year like Carole King’s “Tapestry” and the
Rolling Stones’ “Sticky Fingers.” The concept record was also adapted into a Broadway production that ran for more than two
years. A 1973 feature film, like the record,
helped bring the music into communities far
from Broadway.
“It was the ‘Hamilton’ of its time, though
‘Hamilton’ wasn’t nearly as controversial,”
says Gary Kline, a professor of musical theater at Carnegie Mellon University’s School
of Drama (near where the first authorized
performance of “Superstar” took place in
Pittsburgh in 1971).
Mr. Kline, raised in a conservative Christian household where popular music was
forbidden, first became aware of “Superstar” because his father, a fundamentalist
minister, railed against it from the pulpit as
blasphemous. “It was the word ‘Superstar’
that really got to him—humanizing Christ in
a horrible piece of music which, by the way,
he hadn’t heard either,” the 61-year-old professor recalls.
He finally heard the album when, in
high school, an English teacher played it in
class. He recalls being “mesmerized and
terrified” by the 39 lashes endured by Jesus as heard in the song “Trial Before Pilate.” Many years later, Mr. Kline would
play Pontius Pilate in a “Superstar” production in Pittsburgh.
Because it was conceived as an album,
not a theatrical production, “Superstar” has
been open to interpretation on stage, Mr.
Lloyd Webber said in a recent interview.
“It was freeing for us because we didn’t
Sara Bareilles plays Mary Magdalene in the
NBC production that airs Easter Sunday.
write a piece that was being fashioned by
a stage director. Instead, I was able to use
my musical dramatic instincts on the record. You never know, if ‘Superstar’ had
made it to the stage first we might not be
having this conversation today,” said the
composer, whose recent 70th birthday was
marked by NBC with a tribute special on
Wednesday.
“Superstar” has endured through many
shifts in musical trends and interpretations.
In 2012, Mr. Lloyd Webber produced a British TV series in which contestants competed
to play Jesus in a concert tour that toured
the U.K. and Australia. Another tour,
planned for 54 U.S. cities and starring
rocker Brandon Boyd as Jesus, singer Michelle Williams as Mary Magdalene and
Johnny Rotten as Herod, was canceled be-
The TV adaptation of ‘Howards End’ stars Matthew Macfadyen and Hayley Atwell,
above, and Philippa Coulthard, left. Below, behind the scenes of the production.
STARZ (3)
Me”) and stage (his play “Lobby
Hero” opened on Broadway earlier
this week). “Those issues are always with us, under totally different circumstances.”
Margaret and Helen, living at
the height of the women’s suffrage
movement, “are in a previously
unavailable position to get themselves out into
this culture, but
it’s still not the
same as the avenues open to
men,” he says.
“They’re trying
to navigate that.”
He did make
small adjustments to the
story. “There’s a
certain amount
of contempt that
Forster has for
Mr. Bast, which I
didn’t care for,”
Mr. Lonergan says of the impoverished clerk who longs for culture.
Bast’s wife, a former prostitute, “is
meant to be a grotesque” in the
book. Mr. Lonergan made the characters stronger and more sympathetic, which also makes them
seem less trapped in the past.
He enhanced the attraction be-
The novel’s famous epigram,
“Only Connect,” comes from Margaret’s attitude toward Henry,
whom she doesn’t intend to alter
but to accept, and from her idea
about how the poetry and the
prose of life should mingle.
“If you think more globally, we’re
in a world now where people are
fore it started due to poor ticket sales.
Mr. Meron says that aborted 2014 tour
wasn’t a warning sign for the NBC production. “No, it didn’t give me pause. The TV
audience is different from a concert audience, and the tour didn’t have John Legend,
Sara Bareilles and Alice Cooper.”
The original Broadway production
earned five Tony nominations, yet its glitz
mortified the musical’s composer. NBC’s
version hews more to the creators’ intent,
“quite rough and raw,” says Mr. Lloyd
Webber.
At a former armory building in Brooklyn, Sunday’s live “Superstar” will be performed in front of cameras and an audience of 1,200 people. A stripped-down set
and rock concert vibe (including an area
Mr. Meron refers to as “a mosh pit”) is designed to bring the show back to its roots
and accentuate timely themes, including
“forgiveness, love and trying to get a message out without it being squashed,” the
producer says.
Preparations took place in the basement
of a Catholic church in Manhattan, a cavernous space where the Rockettes also rehearse. Last week, during a run-through of
the song “The Arrest,” Mr. Dixon’s Judas
kissed the cheek of an actor standing in for
Mr. Legend, and a chorus of singers acting
the part of journalists mobbed Jesus.
During the cast’s lunch break, Ms. Bareilles recalled her introduction to “Superstar” with the home-video version of the
1973 film, which brought two worlds together for her as a Catholic and budding
musical theater fan. “I went to Catholic
school so the story of Jesus and the crucifixion was very vibrant in my mind anyway.
Then to see it so humanized seemed magical
to me.”
A chart-topping pop singer who has
crossed over to Broadway by writing music
for shows such as “Waitress” (which she also
starred in), Ms. Bareilles now contemplates
how to mix the mediums of theater and television. For Mary Magdalene’s big number—“I
Don’t Know How To Love Him,” first made
famous by singer Yvonne Elliman—she says,
“There’s a knee-jerk reaction to fill the space
with gestures and other stuff because it’s TV,
but actually that moment is really reflective,
sort of like a prayer.”
shutting down their borders,” Ms.
Macdonald says. Forster’s novel is
“about people who are outsiders, or
feel that they’re trapped in a box
and can’t get out.”
She adds: “That’s why I think
‘only connect,’ is relevant today. It
can apply anywhere there’s a line
that needs to be crossed.”
On-Air Ups and Downs
In 1957, a live CBS production of Rodgers and
Hammerstein’s “Cinderella” drew more than
100 million viewers. Broadcasters have returned to live musicals in hopes of harnessing
audiences even a fraction of that size. These
intended spectacles have had mixed success,
with some suffering live drubbings on social
media. Here are some of the hits and misses.
“The Sound of Music
Live!” (NBC, 2013)
18.6 million viewers
The broadcast musical
trend kicked off with
country-singer Carrie
Underwood (left) in a
dirndl. Though her performance paled next to
Audra McDonald and
other theater vets, the
show hit big ratings.
“Peter Pan Live!” (NBC, 2014)
9.2 million viewers
Allison Williams (Peter Pan), Christopher
Walken (Captain Hook) and company put on
a clunky show, and viewers rendered their
sarcastic critiques on Twitter in real time.
“The Wiz Live!” (NBC, 2015)
11.5 million viewers
A slicker production and seasoned cast, including Uzo Aduba and Mary J. Blige as the good
and wicked witches, respectively, resulted in
one of the network’s strongest live shows.
“Grease: Live” (Fox, 2016)
12.2 million viewers
As TV musicals felt a little lifeless without an
audience on set, this show integrated spectators. The special won five Emmy awards.
“Hairspray Live!” (NBC, 2016)
9 million viewers
The John Waters movie-turned Broadway
show-turned Hollywood film-turned TV musical
drew the fewest viewers of any NBC musical.
“A Christmas Story Live!” (Fox, 2017)
4.5 million viewers
Judging by the smaller audience for this musical about a BB gun-obsessed boy (narrated by
Matthew Broderick), perhaps TV watchers
were content to stick with the 1983 film.
FROM LEFT: NBC; NBCU PHOTO BANK/GETTY IMAGES
“ONE SOUND MAN of business
does more good for the world than
a dozen of your social reformers,”
Henry Wilcox says in the television
adaptation of “Howards End,” set
to begin airing April 8 on Starz.
The line is lifted almost exactly
from E.M. Forster’s 1910 novel
about three families in turn-of-thecentury England, in which characters grapple with such 21st-century issues as the ethics of getting
and giving money, the disparities
of class and women’s rights.
The four-part series never wavers from its Edwardian setting,
but when it was shown last fall in
the U.K., reviews cited how topical
those issues are today. The Evening Standard said the new version suits this “post-Crash, postausterity” moment, “in the midst
of Brexit, Trump and a growing
debate around sexual inequality.”
The creative team behind the TV
adaptation, including writer Kenneth Lonergan and director Hettie
Macdonald, sought to liven up the
book’s enduring themes. In the
process they created a more likable
Henry—played this time by Matthew Macfadyen, Mr. Darcy in
2005’s “Pride & Prejudice.”
“We didn’t want this to be Merchant Ivory redux,” says Colin Callender, an executive producer of the
TV series, referring to the 1992 film
starring Anthony Hopkins as Henry
and Emma Thompson as the independent-minded Margaret Schlegel.
The goal was, he says, “to be true
to Forster but give the piece an energy and freshness and wit.”
As in the movie and novel, Margaret (played on
TV by Hayley
Atwell) and her
socially conscious
siblings are intellectuals living on
inherited money.
She marries the
much wealthier
Henry despite
their philosophical differences.
Helen Schlegel
(Philippa
Coulthard) takes
up the cause of
the working-class
Leonard Bast (Joseph Quinn), with
both tragic and hopeful results.
“Issues of feminism, different
levels of society interacting or failing to interact—I didn’t think specifically, ‘Aha! This particularly
speaks to things that are going on
today,’ ” says Mr. Lonergan, known
for his work on screen (“Manchester by the Sea,” “You Can Count on
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A13
CLOCKWISE FROM LEFT: RMN-GRAND PALAIS (MUSÉE D’ORSAY); MUSEUM OF FINE ARTS, BOSTON; NATIONAL GALLERY OF ART, WASHINGTON
LIFE & ARTS
ART REVIEW
Cézanne’s Colorful Coterie
BY LANCE ESPLUND
Washington
PAUL CÉZANNE (1839-1906) was predominantly a landscape painter, but he also created still lifes, bathers and portraits. “Cézanne Portraits,” at the National Gallery of
Art (the last stop on its globetrotting tour),
is among the most enthralling and dignified
Cézanne exhibitions I have ever seen. Comprising 59 of the French artist’s nearly 160
extant oil portraits, many of them masterpieces, the show is the largest-ever gathering of his portraits, and the first to focus
exclusively on them.
Organized by John Elderfield, chief curator emeritus of painting and sculpture at
New York’s Museum of Modern Art, with
Mary Morton, head of the Gallery's department of French paintings, and Xavier Rey,
director of the museums of Marseille, the
canvases in this beautiful show span Cézanne’s career and are installed chronologically and thematically on blue- or rose-colored walls in a suite of seven skylighted
galleries. As the natural light changes, Cézanne’s shimmering forms and crystalline
colors—especially his infinite range of
blues—pulse and breathe and shift in hue.
The painted subjects—family and friends,
adults and children, laborers, peasants, his
dealer and Cézanne himself—come alive and
beckon you to come closer.
The exhibition opens with early rugged,
tonal works from the 1860s, inspired by
Spanish and Dutch old masters and the
modernists Gustave Courbet and Édouard
Manet. Some of these—cake-icing-thick—are
painted with a palette knife and heavily impastoed, proof that Cézanne was among the
original expressionists.
Here is Cézanne’s first portrait—of him-
self—an intense
seated in a golden
study in browns and
chair, floats like a
yellow-greens, puncballoon, buoying the
tuated by hot reds,
space. She rises and
as if Cézanne were
glides forward like a
smoldering beneath
goddess. The porthe somber surface.
trait is almost surBy 1875, wallpaper
real. A flower held
patterns in one selfin her lap flutters
portrait take on abcinematically, like a
stract lives of their
Futurist bird, as a
own; in another that
set of Cubist andyear, his palette
irons shatters the
brightens and twininterior.
kles, as ImpressionIn the next galistic brushstrokes
lery is “Boy in a Red
free themselves from
Waistcoat”
descriptive contours
(1888-90). It’s a
and sculptural mass.
swaggering fusion of
These first poradolescent sexuality
traits alert us to the
and pathos not seen
fact that Cézanne
again until Balthus;
was always an exa portrait in which
‘Boy in a Red Waistcoat’ (1888-90), above,
tremely inventive,
his hip is cocked like
‘Self-Portrait’ (c. 1875), top left, and ‘Madame
intuitive and emoa gunslinger’s, but
Cézanne in a Red Armchair’ (1877), top right, by his small, youthful
tionally driven, as
Paul Cézanne
well as metaphoric,
face betrays the frapainter. In “The Artgility of a porcelain
ist’s Father, Reading L’Événement” (1866),
doll. Further on is the breathtaking “Woman
the son appears to solve his Oedipus comWith a Coffee Maker (Cafetière)” (c. 1895), a
plex. Paul places the older Cézanne—a
stunning, life-size, three-quarter portrait of a
wealthy banker who wanted Paul to follow
woman in a blue dress. Like “Madame Céin his footsteps—in an imposing armchair,
zanne,” though seated, she appears to rise
in front of one of the artist’s still lifes and
up and to hover magically above her chair—
a view into his studio. The chair envelops
as if she and her large working hands are unthe father and rotates, as if backing away
easy when at rest. A synthesis of Madonna
and attempting to dump him—suggesting
and peasant, she is pensive and stern yet
throne, cloud, monument and headstone.
humble and sturdy. Though guarded, there is
Among the many highlights is a grouping
something erotic and tender about her; her
of four unique, monumental depictions of
pleated bodice expands, opening her chest
“Madame Cézanne in a Red Dress” (all
like an accordion, as wallpaper flowers be1888-90). In the largest and greatest of these, come volumetric, lift off and dance.
the interior lists; the artist’s wife, though
Cézanne is often presented as rather ce-
rebral and dry, unfeeling. “Cézanne Portraits” magnificently challenges these textbook notions about the painter, whom both
Matisse and Picasso referred to as the father of modern art. The individual portraits
are commanding, but the show has unexpected, exponential power.
It reveals that Cézanne developed tremendously as a painter. He moved from predominantly dark and heavy realism through
lighter, brighter and freer paint-handling,
arriving, in the late work, at nearly abstract
patchworks of vibrant color—thus charting
a course from tonal expressionism, into Impressionism and then Post-Impressionism.
He simplified his forms into almost pure geometry; and he fractured and flattened his
spaces—inspiring Cubism and abstraction.
But “Cézanne Portraits” also reveals that he
always had numerous impulses, which he indulged at different times for different metaphoric purposes.
In the last gallery is a suite of very late
portraits of “The Gardener Vallier.” In some,
dissolving figure and ground, presaging the
abstractions of Robert and Sonia Delaunay,
Cézanne weaves him and his surroundings
into a nearly flat and abstract decorative
membrane of tessellating colored light, like
leaves rustled by wind. In others, channeling
Rembrandt and Courbet, it’s as if Cézanne
returns to his own expressionistic roots;
fusing portrait and landscape, Cézanne
transforms his gardener into a dense, luminous mountain of foliage, rock and earth.
Cézanne Portraits
National Gallery of Art, through July 1
Mr. Esplund writes about art for the
Journal. His book “The Art of Looking: How
to Read Modern and Contemporary Art” will
be published this fall by Basic Books.
MUSIC REVIEW | By Jim Fusilli
Knoxville, Tenn.
MUSICIANS eager to improvise
and experiment ruled the day
again at the latest installment of
the annual Big Ears Festival, held
here last week. There were multiple jazz performances by Roscoe
Mitchell, Jason Moran, Tyshawn
Sorey, Craig Taborn and others.
Appalachian folk and country music were represented by Anna &
Elizabeth, the Jerry Douglas Band,
Rhiannon Giddens and Abigail
Washburn and her husband, Béla
Fleck. Delivering rock were Algiers, Godspeed You! Black Emperor, Meshell Ndegeocello, Suuns
and, from Niger, Tal National. Sitarist Anoushka Shankar presented
her 2016 “Land of Gold” album;
the banjoist Mr. Fleck played with
Brooklyn Rider, a string quartet;
Wu Fei, master of the guzheng, a
Chinese zither, jammed with jazz
musicians; Bang on a Can All-Stars
and the choir SONUS performed
Julia Wolfe’s Pulitzer Prize-winning “Anthracite Fields”; and the
Knoxville Symphony Strings and
bass-baritone Davóne Tines offered a program of hymns and
spirituals. Thus, as is the custom
at Big Ears, boundaries between
forms were obliterated.
So where did that leave modern
electronic composer-producers,
whose music is preprogrammed to
a degree and who typically perform without such meritorious
competition for attention? In good
stead, it turned out, as their originality, affinity for improvisation
and avoidance of pop clichés gave
several acts standing in the broad
spectrum of music offered here.
Electronic music has long been
a staple of Big Ears, which has
emerged as one of the most vital
music festivals. Now in its seventh year, it wisely presents veterans who shaped the genre. Long
an innovator in New York’s downtown scene, by shifting readily
among art rock, trip-hop and electronica, Yuka Honda embodies the
Big Ears ethos. Early in her Saturday set, she sang above modernist
orchestral sounds while shifting
among electronic keyboards and a
device that altered her voice.
About 20 minutes in, she shook up
the serene mood with “I Dream
ANDY VINSON
BIG EARS GOES
ELECTRONIC
Kid Koala performing at the Big Ears Festival
About You,” a track from 2004’s
“Eucademix” album. Happily jolted
by lively percussion she seemed to
compose on the spot—imagine
Gene Krupa reincarnated in a
drum machine—the audience began to bob and shuffle in place.
If Big Ears attendees wanted to
dance, they could have done so later
that evening. Four Tet, the stage
name of English musician Kiernan
Hebdan, offered a program of subtle
dance music. He carefully built
highly textured percussion tracks on
the fly, then folded over them music
from his “Beautiful Rewind” (2013)
and “New Energy” (2017) albums.
On Sunday afternoon, he returned
with Mats Gustafsson, the Swedish
saxophonist of jazz trio the Thing,
to offer a program of pure improvisation. At one point, Mr. Gustafsson
blew aggressively; Mr. Hebdan responded by creating complex electronic beats that ducked under the
sheets of sound.
Jenny Hval and Laurel Halo took
similar approaches in their separate, satisfying sets. The recordings
of Ms, Hval, a Norwegian singercomposer, are finely wrought, yet
here she was in an improvisational
mood. Over persistent beats and
synthetic waves of sound, Ms. Hval
sang, and sometimes screamed, as
she unveiled impressionistic stories
that were charming and tense.
Michigan-born but now based in
Berlin, Ms. Halo had drummer Eli
Keszler nearby, and their music
veered toward free-jazz meets electronic experimentalism. Somber
and thoughtful, she added chords
and tones via synthesizers, and
sang with alluring restraint as the
duo transformed tracks from her
2017 album, “Dust.”
Taking electronic improvisation
to a delightful extreme, Eric San,
the Canadian who records as Kid
Koala, enlisted the aid of festival
attendees by placing them at turntable stations and inviting them to
use color-coded discs to reinvent
tracks largely drawn from his
misty 2017 album, “Music to Draw
To: Satellite.” At the event I attended, one of five Mr. San held
over the weekend, it was difficult
to determine what we amateur
turntablists were contributing, but
we were all deeply engaged as
electronica became less abstract
and not so mysterious.
Once again providing music fans
with concert experiences that both
enlighten and entertain, Big Ears
2018 showed that electronic artists
are just as willing to bend genre as
their musical peers.
Mr. Fusilli is the Journal’s rock
and pop music critic.
.
THE WALL STREET JOURNAL.
A14 | Thursday, March 29, 2018
SPORTS
BASEBALL
The Data Wonk
Who Became a Coach
T-B: ARATI MEJDAL; CLAIRE GREENWAY/GETTY IMAGES
The Houston Astros wanted to learn more about what happens
on the field. So they put their stats guru in the dugout.
The Houston Astros sent Sig Mejdal, one of baseball’s most respected quantitative analysts, to spend the 2017 season with the Tri-City ValleyCats.
a bona fide member of the field
staff. In doing so, the Astros provided a proof-of-concept for a potentially paradigm-altering idea
with far-reaching implications.
“Since ‘Moneyball,’ the presentation of analytics in baseball was
‘us versus them,’” said Mejdal, referring to Michael Lewis’s seminal 2003 book. “It’s understandable that with
one of the ‘thems’
coming in, there is
going to be pushback.”
Mejdal is cautious about predicting how far
the “thems” will
advance, but
some around him
are not.
“The reality is
this is going to be the
norm in baseball,” said
Ensberg, an eight-year majorleague veteran. “We see what the
future is going to be. Other teams
may see that as something that’s
silly. But if other teams really look
at what the future’s going to look
like, it’s going to be having an analyst on the bench.”
The idea is indeed expanding
around the sports world. During
spring training this year, both the
Philadelphia Phillies and Tampa
Bay Rays experimented with putting an analyst in uniform for an
exhibition game. In the NFL last
BY JARED DIAMOND
THE DATA revolution that reshaped
baseball and sparked innovation far
beyond sports also inspired an element of distrust. In marched an
army of Ivy League-educated math
whizzes, whose devotion to numbers threatened to upend decades of
tradition and conventional wisdom
that the longtime residents of this
hidebound ecosystem held dear.
The Houston Astros, the defending World Series champions, believe narrowing that chasm could
afford them a competitive advantage. True to their reputation as
perhaps the most unorthodox organization in the major leagues,
they embarked on an unprecedented experiment: They turned a
wonk into a coach.
The Astros sent Sig Mejdal, one
of baseball’s most respected quantitative analysts, to spend the 2017
season with the Tri-City ValleyCats, a Single-A affiliate near the
bottom of the minor-league ladder.
Mejdal, who entered baseball after
jobs at Lockheed Martin and
NASA, worked alongside manager
Morgan Ensberg, offering statistical information to assist in the decision-making process and the development of young talent.
He filled that role not as a highranking member of the front office, but by crossing the sacred
threshold of the dugout, serving as
season, Philadelphia Eagles coach
Doug Pederson spoke with analysts on headset during games to
help with strategic decisions. The
Eagles won the Super Bowl.
Upon taking over as the Astros’
general manager in December
2011, Jeff Luhnow quickly learned
that the people on the field
don’t always respond
positively to radical
new concepts. The
Astros frequently
faced what Luhnow described
as “implementation challenges that we
didn’t anticipate.” An early
adopter of the
defensive shift,
for instance, Luhnow remembers
“pitchers that would
glare at the dugout” when
groundouts in a normal alignment
scooted through the reconfigured
infield.
To combat that problem, the
Astros added full-time “development coaches” in the minors, a hybrid position between typical baseball training and analytics. The
candidates for that job, Luhnow
said, needed “to be able to throw
batting practice, hit a fungo and
program a SQL.”
That went so well that Luhnow
went a step further and tapped Me-
Weather
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
30s
40s
0s
d
Edmonton
0s
C
ry
Calgary
Helena
Por
P
d
Portland
60s
60s
70s
30s
30s
i
Boise
Salt La
Lake Cit
C
Lake
City
30s
Sacramento
30s
n Francisco
San
ta FFe
Santa
Ange
l
Los A
Angeles
San Diego
90s
P
Pierre
Ph
Phoenix
80s
50s
40s
Lou
St.. Louis
D
ll
Dallas
Ft. Worth
A
ti
Austin
JJackson
k
Houston
80s San
an Antonio
A t
60s
U.S. Forecasts
Tampa
80s
Miami
90s
24
25
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.
Tomorrow
Hi Lo W
56 44 pc
88 64 pc
64 39 r
90 64 s
45 30 c
57 34 r
61 45 c
80 53 pc
56 42 pc
66 47 pc
72 53 pc
66 36 pc
57 43 c
48 27 c
67 42 pc
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Today
Hi Lo W
48 39 sh
66 51 s
100 65 c
92 79 c
67 42 s
46 31 pc
50 40 pc
84 60 s
95 74 s
44 37 t
46 35 pc
Tomorrow
Hi Lo W
54 37 pc
67 52 pc
76 57 s
93 79 sh
67 48 s
51 37 pc
53 37 sh
85 62 s
96 75 s
45 37 sh
44 35 r
29
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
7
8
9
10
12
13
19
22
31
27
32
40
42
43
47
50
51
52
Cold
T-storms
Stationary
Snow
64
65
66
Flurries
67
68
69
Showers
Today
Tomorrow
Hi Lo W Hi Lo W
50 34 sh 55 39 sh
53 37 sh 50 37 r
86 63 s
87 64 s
78 70 pc 79 69 s
51 41 r
55 47 pc
91 75 t
90 75 t
60 49 pc 57 48 c
79 56 s
81 58 s
48 40 r
48 40 r
60 41 pc 52 38 sh
91 76 c
89 76 pc
75 55 pc 73 51 pc
81 53 pc 74 48 t
59 47 t
60 47 t
33 14 s
32 25 pc
92 79 pc 91 78 pc
53 42 pc 53 39 sh
88 75 s
88 75 s
99 73 s 100 69 pc
64 54 pc 64 52 r
81 72 s
81 72 s
65 46 pc 65 45 s
76 53 c
69 54 c
90 77 t
90 78 t
82 68 s
84 70 s
83 68 s
78 66 s
70 50 s
60 46 s
47 33 r
46 29 c
50 42 sh 53 39 c
45 34 sn 53 38 pc
49 32 pc 58 37 r
60
45
53
Rain
56
61
57
58
62
59
63
BODY BUILDERS | By Judith Seretto
Across
1 Food sticker
5 Reminiscent of
earlier times
10 A month of
Sundays
14 “Hamilton” won
one in 2015
25 Hurler Hershiser
27 Crush the
midterm
54 Boolean operator
31 Suspended state
58 Expresses
disapproval
15 Penn and others
37 Vitamin fig.
16 Long ago
38 Handy
blaxploitation
movie star?
17 Drag, say
18 Leggy losing
candidate of
1936?
40 Fidelity offering
42 Bloody action
movie star?
20 Like Jane Eyre
and Princess Leia 46 Cloverleaf
feature
22 Litter bearer
23 BART stop
24 “Scram,
varmint!”
53 Where Ben
Bernanke got his
Ph.D.
29 Like some
kitchens
34 Leggy baseball
slugger?
40 Title knight of
literature
6 Skirt
8 Field marshals
41 “An Unkindness
of Ravens”
author
9 Jo Nesbø’s
birthplace
44 Pros with prose
7 Up to, for short
Warm
55
44
48
49
39 Octal base
5 Holey gizmo
39
41
46
36 Home of college
football’s
Cyclones
4 Castle
stronghold
37
38
35 Middle name in
the National
Inventors Hall
of Fame
3 Cannoli
contents
28
33
36
33 Geraint’s wife
Down
1 Lives off the
land, in a way
2 Book with a
single chapter
23
26
35
11
16
30
34
100+
Ice
Today
Hi Lo W
48 32 c
86 63 s
67 58 c
85 61 s
62 38 r
49 40 c
61 43 pc
81 49 s
50 36 r
59 44 pc
75 51 s
60 30 s
56 45 c
42 30 pc
78 62 pc
6
18
40s
55 Crater feature
60 Jazz trumpeter
with pronounced
pecs?
43 Military noble
10 Writer Rand
45 “I think we
should say no”
11 Boon
12 Album on
whose cover
Madonna’s
features were
appropriately
blue
46 Source of wise
counsel
13 House neighbor
52 Bearish
19 On vacation
56 Creature sacred
to Thoth
47 Left on an
ocean voyage
51 Elite squad
21 Big name in
small trucks
57 Whipped up
59 Row
26 Goodly
61 Carrier with the
EuroBonus
frequent flyer
program
28 Library fixture
30 To a degree
63 Monopoly token 32 Tombstone
replaced with the
word
62 Mauna ___
cat in 2013
Previous Puzzle’s Solution
64 Showgirl of song
65 Shining example
66 Game akin to
monte bank
48 Tree-ringed tract
67 Snaky swimmers
49 Ultimately cost
68 Hardly reputable
50 Jumble
69 Duke, so to speak
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
37 24 pc 36 21 pc
Atlanta
73 56 c
68 44 pc
Austin
83 50 pc 75 51 s
Baltimore
72 60 c
65 37 pc
Boise
59 39 pc 64 44 pc
Boston
55 47 c
60 37 r
Burlington
54 42 r
50 29 r
Charlotte
78 63 c
76 44 pc
Chicago
47 31 r
50 36 pc
Cleveland
54 33 r
43 32 pc
Dallas
73 47 pc 72 56 s
Denver
51 28 sf 62 35 pc
Detroit
50 31 r
50 33 pc
Honolulu
83 68 pc 83 70 s
Houston
83 59 sh 80 57 s
Indianapolis
55 35 r
51 34 pc
Kansas City
51 30 pc 58 44 pc
Las Vegas
79 58 s
82 61 s
Little Rock
68 44 r
68 45 pc
Los Angeles
77 55 s
78 56 pc
Miami
81 70 pc 83 69 pc
Milwaukee
44 29 pc 47 34 pc
Minneapolis
43 29 pc 42 28 c
Nashville
68 47 t
62 38 pc
New Orleans
76 59 t
77 58 pc
New York City
54 50 c
62 40 r
Oklahoma City
54 35 pc 64 47 s
ew
w Orleans
New
17
54
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Orlando
5
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Jacksonville
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Mobile
4
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Richmond
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Atlanta
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Birmingham
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80s
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Charlotte
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2
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D.C.
DC
Washington
70s
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Charleston
h
Nashville
70s
Honolulu
l l
LLo
Louisville
Memphi
p
Memphis
60s
70s 80s
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Indianapolis
1
14
30s
50s
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Boston
rtford
Hartford
ew Y
New
Yorkk
Ph
hil d lphi
Philadelphia
P
b h
Pittsburgh
60s
Kansas
Cityy
h
Wichita
klahoma
homa C
Cityy
Oklahoma
A
b q q
Albuquerque
T c
Tucson
40s
p
fi ld
Springfield
Topekk
Topeka
El Paso
30s
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Omaha
Denver
A g t
Augusta
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Albany
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Buffalo
40s
50s
10s
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Detroit
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Chicago
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Cleveland
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p g
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Vegas
50s
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Toronto
Mpls./St. Pa
Paul
20s
Montreal
Ottawa
30s
oux Falls
Sioux
Reno
80s
Bismarckk
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Billings
40s
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Eugene
80s
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Winnipeg
Seattle
60s
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Vancouver
jdal as a coach despite his unusual
background—two master’s degrees
earned, zero baseball games played
past Little League. A man who initially joined the Astros with the
eyebrow-raising title of “director of
decision sciences” would now embed himself on the frontlines.
“So much of our knowledge is
still theoretical,” said Mejdal, who
the Astros now call a special assistant for “process improvement.”
For almost three months, the
length of the New York-Penn
League season, Mejdal lived like a
minor leaguer, not a top official.
Instead of a polo shirt and khaki
pants, he wore a uniform for the
first time since childhood, donning
No. 21 as an homage to his past as
a blackjack dealer. He coached first
base, helped with batting practice
and hit grounders to anybody who
requested extra work. He endured
the six-hour bus rides from Lowell,
Mass., to Williamsport, Pa., living
in cheap motels and subsisting on
late-night drive-throughs and convenience stores.
“The first time we were driving
around this tiny town looking for
food, where fast food was a plus if
that was open, was eye opening,”
Mejdal said. “The notes and ideas
started.”
Mejdal struggled to shake the
feeling that as an analyst from the
front office, he didn’t belong in
this world. At first, he compared it
to sneaking into a movie theater
without a ticket—“you’re half expecting someone to come tap you
on the shoulders and say, ‘OK,
enough of that.’”
It helped that he had the unwavering support of Ensberg, who said
that a manager put into that situation unwillingly could “completely
Deep Six” an intruder like Mejdal.
Ensberg instead embraced Mejdal and used him as a resource.
Frequently, Ensberg would consult
with Mejdal for statistical advice
about how to handle in-game decisions, such as whether to bring the
infield in. Mejdal would then explain what the numbers revealed.
Sometimes, Ensberg would pose
additional questions, asking how the
speed of the runners or the style of
the pitcher might affect the outcome. In those cases, Mejdal would
write everything down and insert
the variables into his statistical
model after the game, adding better
data that would lead to more precise decision-making the next time.
“If I were ever blessed enough
to become a major-league manager,
I would have an analyst on the
bench,” Ensberg said. “The person
that needs to push this through
and believe it is the manager.”
With Ensberg’s blessing, the
players—many of whom had been
drafted days before arriving—
bought in. The Astros chose the
ValleyCats for this project thinking
that prospects at an introductory
level wouldn’t question Mejdal the
way more seasoned players might.
In reality, most of the players
knew little about Mejdal. Parker
Mushinski, a 22-year-old pitcher,
said that he learned about him during a particularly long bus ride,
when sheer boredom prompted him
to punch Mejdal’s name into Google.
Mushinski can speak personally
to Mejdal’s value and how traditional baseball coaching and data
analysis can work in tandem. During the season, Mejdal presented
Mushinski with data showing that
he took upward of 1.5 seconds to
deliver the ball to the plate with
men on base, frequently allowing
runners to steal.
Earning the trust of players also
enabled Mejdal to survive when he
messed up. He recalled a game in
Batavia when, during a long inning, he forgot the number of outs
while coaching first base. When
his erroneous instructions to a
runner led to a double play, Mejdal
said he “felt sick.”
It is exactly that kind of experience Luhnow wanted for Mejdal at
Tri-City, hoping to create a better
understanding between the field
staff and the front office. This season, Mejdal will spend time at all
four of the Astros’ full-season minor-league affiliates to continue
the learning process.
Whether that ultimately leads
to somebody like Mejdal joining
the major-league staff remains to
be seen. “The idea is not to have
this separation between us and
them,” Luhnow said. “Just because
one person stopped playing baseball in middle school and another
person played 10 years in the big
leagues doesn’t mean they can’t
work together collaboratively to
help players get better.”
E
T
A
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A
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E
A
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A
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P
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S H I P
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N E O N
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E E D S
D D Y E
T I N E
O P E N
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THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A15
OPINION
Is Facebook a Frankenstein?
Like
Mark
Zuckerberg,
Doctor Frankenstein was a
good
guy
whose experiment just got
WONDER
out of hand.
LAND
Now the mobs
By Daniel
are howling
Henninger
after
Facebook,
Mr.
Zuckerberg’s creature.
It is true that Facebook’s release of personal “friend data”
into the ozone through Cambridge Analytica remains in the
news only because of the prevailing superstition that the
Facebook monster allowed
Donald Trump to be elected
president. The idea that omnipotent technology manipulated
the 2016 election has greater
appeal to advanced progressive
thinking than Hillary Clinton’s
explanation that married white
women sold her out.
But really, all that is a sideshow. The backlash against
this technology, the belief that
the creature must be controlled, has been building for
several years. Along with
Google, Facebook is the biggest web target, so Mark Zuckerberg is about to get torched
by Congress and any regulator
within reach for abusing
“data.”
Data is the oxygen of the internet. Any online click for any
reason inputs data. In the beginning this data, organized
into things like family Facebook groups or Google Maps
or Wikipedia, was seen as
good.
For several years BTTP—
BTTP being human history
Before The Trump Presidency
—articles and books poured
forth describing the dark side
of this technology. In the past
year, that criticism has
reached critical mass.
Researchers and parents
agree that social media is distorting the lives of young people, especially adolescent girls.
No one knows what to do
about it.
Web forums fill with millions
of young men exchanging sexual and political rants. No one
knows what to do about it.
Terrorists wallow in jihadist
videos on YouTube, brainwashing themselves into acts of
mass murder. No one knows
what to do about it.
People write articles saying
they have forgotten how to
read books.
Major advertisers accuse
social-media companies of allowing their ads to appear
alongside pornography, a bog
beyond anyone’s control.
The cyberwarfare spies of
Russia’s Internet Research
Agency ran around the U.S. uncaught for years.
Social media’s contribution
to the Arab Spring and
Ukraine’s Orange Revolution
was an era ago. The technology has been captured since by
dictators who use it as an instrument of surveillance and
control that would startle
Philip K. Dick.
In one week, Facebook the
good communitarian has become Facebook the abuser of
everyone’s privacy.
The story of Frankenstein
endures as a metaphor of good
intentions gone haywire because it keeps happening.
Some people used to argue
that because Albert Einstein
explained how energy could be
released from atoms, he bore
responsibility for the atomic
bomb. By this logic blame
should fall on Tim BernersLee, the inventor of the World
Wide Web, for electing Donald
Trump.
Mark Zuckerberg, the
biggest web target, is
about to get torched
by the U.S. Congress.
Do not for a moment think
that Mr. Zuckerberg, Mr. Berners-Lee or any of the others
who created modern life online
are unaware that history may
conclude their creations were
a mistake.
Mr. Berners-Lee, reacting to
the Facebook mess, accused
social-media companies of
abusing his creation: “The fact
that power is concentrated
among so few companies has
made it possible to weaponize
the web at scale.”
“Weaponize” evokes the
idea of dual-use technology,
which is tech that can be put
to both a peaceful and military
purpose, such as rocket guidance systems. The internet has
finally been recognized as a
dual-use technology, good and
bad.
Tim Cook, Apple’s CEO and
inheritor of Steve Jobs’s creations, weighed in this week,
ironically from China, the
global leader in Orwellian surveillance systems. “The ability
of anyone to know what you’ve
been browsing about for
years,” said Mr. Cook, “who
your contacts are, who their
contacts are, things you like
and dislike and every intimate
detail of your life—from my
own point of view it shouldn’t
exist.” Of course, the iPhone
became the universal gateway
into this dystopia.
One can imagine that when
Sergey Brin and Larry Page
created Google’s early motto,
“Don’t Be Evil,” they sensed
what Robert Oppenheimer and
his colleagues on the Manhattan Project knew: The power of
what they had created might
be a problem.
Back when superstition
ruled the world, the solution
to a larger-than-life problem
was known as forcing the genie back into the bottle. Today,
when algorithms rule the
world, one would think that an
industry with aggregate IQ
greater than any ever assembled could figure this out. But
maybe IQ correlates with the
problem.
If the issue is privacy, why
does every app and site incentivize users to scroll past
pages of legal boilerplate to hit
“I Agree,” rather than writing
up top in large type: “THIS IS
THE ONE SENTENCE YOU’VE
GOTTA THINK ABOUT BEFORE
YOU AGREE”?
There is another alternative
to trying to dam up the internet torrent with regulation:
Every time anyone clicks into
an app or search engine, they
should see this more needed
personal motto for our times:
Don’t Be Stupid.
Write henninger@wsj.com.
The Illuminati Embrace Protectionism
By Karl Rove
I
recently received a dossier concerning an emergency meeting by some of
America’s trading partners at
the Illuminati headquarters in
Venice. The document came to
me by sources and methods of
intelligence I’m not at liberty
to share. But for the record,
Fusion GPS and its agents
played no role in procuring or
preparing this dossier.
What united the 138 nations
gathered in Venice? Each
country imports more from
the U.S. than it exports. Together they formed the international advisory group known
as Countries Shafted by Bad
Trade Deals with the U.S., or
Cosbatdus. They were meeting
to discuss how to respond to
President Trump’s protectionist actions.
A representative from Hong
Kong, which has the largest
trade deficit with the U.S., led
the meeting. His vice chairmen—from the United Kingdom, United Arab Emirates
and Belgium, other large-deficit nations—assisted. The
agenda and recommendations
were prepared by the Cosbatdus executive committee. It
consists of Australia, Chile,
Egypt, Ethiopia, Honduras, Iceland, Mongolia, Morocco, the
Netherlands and Vatican City—
with all of which the U.S. has a
trade surplus.
Some countries proposed
duties on imported American
goods, as a response to Mr.
Trump’s imposition of steel
and aluminum tariffs. But
speaker after speaker pointed
out that consumers in countries levying the tariffs, not
American companies producing the goods, would pay the
tariffs. Why raise prices on
your own people?
Another hot topic was
whether Cosbatdus countries
should pursue free-trade agreements with the U.S., lowering
barriers to importation of
American goods and services if
the U.S. reciprocated. But after
There are 138 nations
that run trade deficits
with America. What
if they got together?
extensive discussion, there was
agreement that by leveling the
playing field such trade agreements appear advantageous to
America. In 2016 the combined
U.S. deficit with the 20 countries with which it had a freetrade agreement was a $3.7
billion. (These countries imported $851.8 billion from the
U.S. while the U.S. bought
$855.5 billion from them.) By
comparison, countries without
such agreements imported
$1.352 trillion in American
goods and services while selling the U.S. $1.737 trillion in
return—a U.S. trade deficit of
$385 billion.
There was discussion about
Mr. Trump’s refusal to acknowledge U.S. service exports
to Canada. These offset America’s deficit in imported goods
and create an overall U.S.
trade surplus with its neighbor. Should Cosbatdus follow
Mr. Trump and ignore the
value of services when calculating trade deficits? This approach was opposed by the 112
countries that have a trade
deficit with the U.S. in goods
alone, and for which the U.S.
doesn’t track sales of services
like banking, travel, computer
software, film and television
distribution, management consulting and data processing.
These countries pointed out
the U.S. would eventually demand services be included in
calculating total trade since
dropping sales of services
would increase the overall U.S.
trade deficit.
Also present was the Five
to One Caucus, consisting of
the 65 nations that import at
least five times as much from
the U.S. as America buys from
them. They pushed for mandatory purchase requirements
that would obligate America
to buy enough of a nation’s
leading products to narrow
the U.S. trade surplus to a 2to-1 ratio. Delegates could not
agree on how to select what
commodities or products
America would be forced to
purchase. Nor could they decide whether U.S. purchases
had to be simultaneous with
the member country’s importation of American goods or
could be done later to balance
the books.
This led to a discussion of
repealing the law of comparative advantage, first articulated by Adam Smith in “The
Wealth of Nations” (1776). “If
a foreign country can supply
us with a commodity cheaper
than we ourselves can make it,
better buy it of them with
some part of the produce of
our own industry employed in
a way in which we have some
advantage.”
Delegates were confused
about how to repeal comparative advantage, wondering
whether it was a statute, law
of nature or international
agreement. Nor could anyone
discern how to force the U.S. to
build more expensive aircraft
or construction equipment,
create fewer good movies or
pharmaceuticals, and provide
less-attractive financial and insurance services.
The Cosbatdus meeting
ended in disarray, its final action to reject the proposed
motto of “Make America’s
Trading
Partners
Great
Again.” Member countries
worried about trademark infringement complaints from
Trump attorney Michael Cohen. They also weren’t convinced President Trump is
correct that the only fair trade
deal is where the other guy
buys more from you than you
do from him.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
This Warning May Cause Severe Anxiety
By Peter Funt
B
ig Pharma has had many
grand successes—from
correcting erectile dysfunction to masking bald spots
on the president’s head. But
its TV commercials are starting to make me sick. Across
the dial, but especially on cable news, it’s hard to avoid
drug ads in which the dominant theme seems to be a risk
of sudden death. Worse, if the
prescription doesn’t kill you,
there’s a chance you’ll simply
kill yourself.
Consider Chantix, which
calls itself “the #1 prescribed Rx
quit-smoking aid.” Its commercials mention the usual side effects, such as weight gain.
Then, while happy-go-lucky
background images roll, the announcer also warns of “suicidal
thoughts or actions.” Talk about
a dilemma: Die from smoking,
or kill yourself because you finally tried to quit.
This raises many vexing
questions: How serious does a
malady have to be to risk suicide while curing it? Why are
so many drugs prompting this
anyway? And why are the dire
TV warnings always accompanied by gorgeous, happy people gardening, dancing or frolicking with cute dogs?
It’s a wonder anyone
takes drugs given all
those side effects.
It was roughly 25 years ago
that the Food and Drug Administration opened the
floodgates for “product claim”
drug ads aimed at consumers.
Now companies spend more
than $5 billion a year on
them. The FDA’s rules say the
ads must include a “major
statement” of the drug’s risks,
and “this presentation must
be spoken.”
That has created lucrative
gigs for voice-over announcers capable of mellifluously
mentioning that, by the way,
you might kill your cat or your
neighbor, but don’t let it distract you from this footage of
Hawaiian sunsets.
In 2003 I conducted an experiment on “Candid Camera”
with a fictitious pill we called
“Fabloxiline.” Our claim was
that it strengthened fingernails, and we recruited a dozen
or so college students to test
the product.
Before they began treatment, our fake announcer, using his best Hawaiian-sunset
voice, explained that side effects included “uncontrolled
flatulence” as well as “decrease in weight or height.” No
one cared. Who pays attention
to that sort of verbal fine
print?
A few years later Kristen
Wiig did a Chantix ad spoof on
“Saturday Night Live” in which
she was warned about “a powerful, overwhelming desire to
kill the person you love most.”
Other side effects: “jazz hands”
and “Robert De Niro face.”
Did I mention I’ve been taking a wonder drug for 10 years
whose warning includes a risk
of death? My doctor put me on
Enbrel with a brief chat about
risks, but no mention of mortality, which is why I left his
office happy and confident.
Now the nightly ads are
stressing me out. The FDA
wants to warn patients considering new drugs, overlooking
the frightening effect on millions of people already taking
them.
Fact is, short-form TV ads
are better suited to extolling,
say, Pepsi than explaining the
risks of powerful pharmaceuticals. Doctors complain they
spend time fielding questions
about TV warnings, and the
American Medical Association
has long lobbied against such
ads. Perhaps the FDA should
require a new warning about
the side effects of too many
drug commercials.
Mr. Funt is a writer and
host of “Candid Camera.”
BOOKSHELF | BY Katherine A. Powers
Is the National
Pastime Passé?
Why Baseball Matters
By Susan Jacoby
(Yale, 200 pages, $26)
S
usan Jacoby’s book on baseball is part of the Yale
University Press series “Why X Matters,” each volume
of which presents, as the Press puts it, “a concise
argument for the continuing relevance of an important
person or idea.” In other words, Ms. Jacoby is not to blame
for a title that promises metaphors and mawkishness of the
sort that baseball, considered abstractly, routinely elicits.
“Why Baseball Matters” is relatively free of all that, owing,
perhaps, to its not having very much to do with why baseball
matters. Instead, what we have here is part memoir, part
discussion of the game’s evolution and current predicament,
and part jeremiad against the age of distraction.
The most frequently heard complaints about baseball today
are that the games are too long and the pace is too slow. And,
certainly, the length of games has crept up over the years. In
the 1950s they ran about 2½ hours while in 2017 they clocked
in at 3 hours, 5 minutes (and 11
seconds). A number of factors
contribute to this: longer commercial breaks, replay reviews, more
pitching changes, more trips to the
mound and general dawdling.
These things lengthen and slow
the pace of games, but what people
usually mean when they grumble
about the slow pace of baseball is
that it is, in fact, a slow-paced
game. This complaint is not new
but it has more force now that the
rising generation of hoped-for
baseball fans has been nurtured—if
that is the word—by digital media
that deliver instantaneous, everchanging stimulation. While most baseball
games provide moments of high drama,
explosions of power and feats of grace and derring-do, the big
moments take place in the course of a leisurely—though
suspenseful—period of time ungoverned by the clock.
And that is what Ms. Jacoby, an independent scholar who
writes widely about American culture, appreciates and wants to
preserve, as do countless other true fans, this one included. For
her part, Ms. Jacoby came to know and love baseball as a child
in the 1950s by watching the White Sox on television in her
grandfather’s bar outside Chicago. While looking back to this
time with pleasure, she does not idealize it as an era of
sweetness and light, noting that racism was far more overt and
the reserve clause made playing professional ball a form of
indentured servitude. But, she says, “part of the reason I love
baseball as much as I did when I was a child is the game’s
periodic ability to reinvent itself and transcend some of its selfinflicted abominations as well as external social pressures.”
There are plenty of innovations—some of them true
abominations—in the works, all intended to shorten and hot
up the game. Already an intentional walk can merely be
signaled rather than pitched, and there are new limits on
visits to the mound. If owners have their way, there will soon
be restrictions on the number of pitching changes, on throws
to first, on time between pitches and times a batter can step
out of the box. A grotesque change in the rules, that of
placing a runner on second to begin an inning once a game
reaches 10 innings, has already been employed in the minor
leagues, and a variation on this has been floated for use in
the next All-Star Game. It’s a slippery slope, portending such
loathsomeness as extra-inning games ending with a homerun derby—as has also been proposed.
Today’s digitally distracted youth show little
enthusiasm for a game ‘that requires intense,
sustained concentration from its fans.’
But, as Ms. Jacoby points out again and again in different
ways, the length and pace of a baseball game are not the
problem. Major League Baseball has “the oldest, whitest fan
base of any major sport.” Although there is an encouraging
increase in the number of Hispanic fans, undoubtedly the
result of the increase in Hispanic players, African-American
fans are dwindling, reflecting the makeup of the rosters. (In
1986, 18.3% of the players were African-American while in
2017 it was down to 7.7%.) She is pleased to note that, to
counter this, MLB is employing several strategies to cultivate
young, black baseball players.
The most serious threat to the game, however, continues
to gather force: Young people don’t care about baseball;
their tastes are shaped by electronic entertainment. Ms.
Jacoby points out repeatedly that today’s enslavement to
social media and digital entertainment—fragmented,
distracting and offering immediate gratification—threatens a
game “that requires intense, sustained concentration from
its fans.” She is happy that MLB has courted the favor of the
young with At Bat, an app that delivers game highlights,
scores, statistics and the like; still, she doesn’t think it
creates a desire to watch whole games.
And she is exceedingly unhappy about MLB’s foray in the
digital world through its embrace of fantasy-baseball
gambling. In what is truly a pact with the devil, MLB has
become a partner with DraftKings (“Daily Fantasy Sports for
Cash”), making the company MLB’s “Official Daily Fantasy
Game.” In this form, online gambling, odious and often ruinous in itself, also reduces players to isolated generators of
statistics and the games and actual teams to an irrelevance.
Toward the end of this short, heartfelt book, Ms. Jacoby
finally takes on the title with an assist from Bill “Spaceman”
Lee. She quotes him as saying, “Baseball is the belly-button
of our society. Straighten out baseball, you’ll straighten out
the rest of the world.” For Ms. Jacoby this twaddle somehow
suggests that “baseball matters because it provides genuine
nourishment rather than junk food.” This means—should you
wonder—that baseball calls for concentration and a
sustained attention span, and, as such, is salutary in an age
of distraction. This has been her point throughout the book,
but, as she has also noted repeatedly, it is why the game is
threatened. So we’re going in circles. The simple truth is
that baseball matters because—as she also maintains,
though less didactically—the game has, for better or worse,
“played a role in American history that goes far beyond
amusement or entertainment.” Put another way, baseball,
the greatest of all games, matters because it links us to the
past and is part of our identity.
Ms. Powers, a recipient of the National Book Critics Circle’s
Nona Balakian Citation for Excellence in Reviewing, is the
editor of “Suitable Accommodations: An Autobiographical
Story of Family Life: The Letters of J.F. Powers, 1942-1963.”
.
THE WALL STREET JOURNAL.
A16 | Thursday, March 29, 2018
OPINION
LETTERS TO THE EDITOR
The Political Judges of Gerrymanders
Airline Travel: Two Legs Good, Four Legs Bad
he Supreme Court on Wednesday heard his district by 14 points. The Maryland Solicitor
its second challenge this term to parti- General noted that independents in 2012 oversan gerrymanders, this time in a case whelmingly favored Democrats “because of the
brought by Republicans. The
views of those voters and the
The Supreme Court
GOP argument isn’t any better
strength of that candidate,”
than the Democratic case last
lines.
may dive into a divisive notInthethedistrict
fall from Wisconsin, and both
Gill case the Court
and partisan thicket.
argue strongly against judicial
heard last fall, Democrats adintervention.
vocated a convoluted formula
In Benisek v. Lamone, Recalled an “efficiency gap” to
publicans in Maryland’s 6th Congressional dis- measure partisanship. But the efficiency gap
trict contend that the Democratic legislature re- varies from election to election as voting shifts
taliated against them when redrawing the on an individual and district level. More than
House map in 2011. Lawmakers lopped off half of all maps drawn in the last 45 years had
65,000 GOP voters and packed 30,000 Demo- an efficiency gap in one election greater than
crats into the 6th district, which helped Demo- the 7% standard that Democrats proposed as a
crat John Delaney in 2012 defeat 10-term GOP bright illegal line.
Rep. Roscoe Bartlett by 21 points. The new disMaryland’s map had an efficiency gap of 6.7%
trict lines “disrupted and depressed Republican in 2012 but exceeded 12% in 2016. So Maryland’s
political engagement in the area, and manifestly map could have been constitutional in 2012 but
diminished their opportunity for political suc- struck down four years later under the Gill stancess,” the GOP plaintiffs allege, thus violating dard. Establishing an arbitrary standard would
their First Amendment rights.
invite endless parade of partisan gerrymander
The Court has long held that drawing dis- challenges, politicizing the judiciary.
tricts inherently implicates political questions.
Consider what happened when the DemoBut in Davis v. Bandemer (1986), the Court cratic majority on the Pennsylvania Supreme
opened a crevice for judges to review political Court last month struck down the state’s Congerrymanders even though a majority couldn’t gressional map as violating the state Constituagree on a standard for determining how much tion. The partisan judges redrew the map in a
politics is too much. None has emerged.
way that favored Democrats. Republican apWhile the GOP plaintiffs say any map that peals to the U.S. Supreme Court for an injunchas more than a “de minimis” effect on voter tion were denied. But why is a partisan map
engagement and dilution is discriminatory, Jus- drawn by Democratic judges better than a partitice Ruth Bader Ginsburg asked, “What falls in san map drawn by GOP legislators?
the de minimis category?” Neither the ConstituPartisan gerrymanders are ugly and contribtion nor federal law offers an answer, and law- ute to political polarization. But recent Republiyers in the case disagree. Judges would identify can defeats in special elections and the increaspartisan discrimination when they see it.
ing number of House seats projected to be
Under the plaintiffs’ “de minimis” standard, competitive this fall show that political gerryeven redrawn districts that make elections manders are best cured by—politics.
more competitive could be unconstitutional. As
In January Democrats picked up a Wisconsin
Justice Anthony Kennedy mused, natural popu- Senate seat the GOP had held for 17 years. This
lation shifts could impel a state legislature to month Democrat Conor Lamb won Pennsylvaredraw a district in a way that dilutes a partisan nia’s 18th district, which Republican Tim Murmajority. Would that be retaliation?
phy had held since 2003 and Donald Trump won
Chief Justice John Roberts wondered about by nearly 20 points. The Pennsylvania map had
independent voters, who often turn elections in- an efficiency gap of 20% in 2016.
cluding in Maryland’s 6th. While Mr. Delaney
Both parties will have a chance to redraw
won by 21 points in 2012, he squeaked by with districts after the 2020 election. Judges
1.5% in 2014 when GOP Gov. Larry Hogan carried shouldn’t usurp voters and legislators.
D
We understand that
companion animals are
playing an increasingly
central role in the lives
of their families. The
ARK at JFK works together with shippers,
airlines, ground handlers and pet owners to
provide information, services and accommodations for pets pre- and posttravel. As an organization committed
to promoting safe, humane and responsible transportation of all animals, it’s our responsibility to ensure
their well-being from gate to gate.
Apart from recreational travel,
there are many instances where animals must take flight. Planning and a
thorough understanding of the process can ameliorate many of the risks
associated with animal travel. It isn’t
as simple as jumping on a flight with
one’s pet in a carrier. In light of recent events, more must be done. All
major hubs and ports of entry should
be addressing the need for approved
animal reception and care facilities.
This will facilitate better animal care
while addressing public health and
security issues.
ELIZABETH A. SCHUETTE
Managing Director, the ARK at JFK
Jamaica, N.Y.
Our love of pets and animals is one
thing, but when we decide to inflict
our animals on others for purely selfish or questionable emotional dependencies we cross the line. Service animals, yes, absolutely. “Emotional
support” animals—not so much. I volunteer at Denver International Airport and am amazed at the number
of dogs being dragged around like
they were just another human member of the family. Pet-relief stations
are available, but sometimes not easy
to find. They constitute one more expensive line item airports have to design, develop, install and maintain
that the entire flying public has to
pay for.
MICHAEL MARSH
Lakewood, Colo.
G-Men Under Subpoena
irector Christopher Wray said Tuesday National Security Adviser Michael Flynn. He
that he is doubling to 54 the number and Mr. Strzok knew each other, so Mr. Strzok
of FBI agents working to respond to and Ms. Page were excited when Judge Contredocuments subpoenaed by
ras was appointed to the ForChristopher Wray
House Judiciary Chairman Bob
eign Intelligence Surveillance
Goodlatte, and it’s about time.
Court in 2016.
promises Congress a
Mr. Goodlatte is looking
Mr. Strzok and Ms. Page
more cooperative FBI. went on to scheme about how
into the FBI’s investigation of
Hillary Clinton’s private
they might arrange to talk
server and its use of the
with the judge without “placSteele dossier to spy on former Trump cam- ing him into a situation where he’d have to repaign associate Carter Page, among other cuse himself.” When Justice originally sent the
things. The FBI has been notably uncoopera- Strzok-Page text messages to Congress, this
tive, and news reports say Mr. Wray’s latest content was blacked out. Members only
cooperation came only after Attorney General learned about the Strzok-Contreras relationJeff Sessions told him no more slow-walking ship when Congressional investigators went to
information.
Justice and were able to view the unredacted
What matters now is whether the FBI pro- texts. Meantime, Judge Contreras in December
vides Congress the records in a timely way— had recused himself from the Flynn case.
and without the sneaky redactions that have
Mr. Wray’s statement pledges the FBI will
been used to keep the American people in the be “transparent and responsive to legitimate
dark. One example: the text messages between congressional requests.” If not, Mr. Goodlatte
FBI paramours Peter Strzok and Lisa Page re- and the House leadership must be willing to
garding Rudolph Contreras. Federal Judge Con- use their powers of contempt and impeachtreras presided over the case against former ment to impose consequences.
T
Having shared a three-seat row
with a couple and their medium-size
dog on a 6.5-hour cross-country
flight, I cannot agree more with “The
Middle Seat: On Your Next Trip,
Leave the Pets at Home” (Life & Arts,
March 21). The dog I shared the row
with wasn’t a lap dog and didn’t have
any visible indication that it was a
service dog. The dog appeared to be
sedated although it did get somewhat
animated when its owners moved
around the cabin and when snacks
were distributed. I support the concept of working service dogs traveling with their owners anywhere they
reasonably need to be. Those of us
who aren’t dog people are subjected
to “comfort” dogs and
other comfort animals
on all modes of travel,
in retail establishments
and restaurants and
other public accommodations. I pity the people with allergies who
are required to suck it
up. What about their
comfort?
WILLIAM BAILEY
Tacoma, Wash.
ISTOCK/GETTY IMAGES
T
REVIEW & OUTLOOK
Mr. Lighthizer’s Managed Trade
he Trump Administration is celebrating opening for U.S. farm goods or other exporters.
its revised trade agreement with South By focusing so much on autos and steel, Mr.
Korea, and the news is how little the Lighthizer missed an opportunity to expand
deal will change. The U.S.
trade in services, where the
The revised Korea deal U.S. runs a $12.3 billion annual
wisely backed away from
threats to blow up the pact
with South Korea.
favors Detroit and steel surplus
with its sixth largest trading
Mr. Lighthizer is also trumover U.S. consumers.
partner, but the price is more
peting Seoul’s acceptance of a
politically managed trade.
30% cut in its steel exports to
Donald Trump once called
the U.S. This is a defeat for
the 2012 bilateral pact “horrible” and threat- American steel users who are already paying
ened to withdraw if Seoul refused to renegoti- higher prices despite the country-specific exate. But after the melodrama, the new pact’s emptions from Mr. Trump’s world-wide 25%
main revisions are a change in the terms of tariff on imported steel. Reducing supply can
trade for vehicles and a quota on Korean steel have the same effect as a tariff in raising doexports to the U.S. Neither is likely to make mestic prices.
much difference to the U.S. trade deficit with
This is another step toward politicians manSouth Korea, which is supposedly the goal of aging trade flows, as if Mr. Lighthizer in his wisthis exercise.
dom can judge the right supply for tens of thouThe biggest changes are in vehicles trade, for sands of buyers and sellers. This seems to be
good and ill. The good news is a doubling of the the U.S. trade rep’s household remedy. The U.S.
annual U.S. car and truck exports that are ex- bludgeoned Mexico into accepting sugar quotas,
empt from South Korean safety standards per and he’s now doing the same with steel supplimanufacturer to 50,000 from 25,000. U.S. stan- ers around the world.
dards will now be enough. Ford and General
The creation of the World Trade OrganizaMotors exported fewer than 10,000 vehicles to tion was supposed to put an end to these soSouth Korea in 2017, according to Reuters, so called voluntary export restraints. But Mr. Lighthe problem has been as much consumer prefer- thizer negotiated them with Japan in the 1980s,
ence as trade barriers.
and he wants to try again. His problem is that
The Trump Administration is also claiming global business supply chains are more complex
victory for extending the 25% U.S. tariff on Ko- than 30 years ago, trade is dominated by interrean truck exports for another 20 years through mediate goods, and the U.S. is no longer as dom2041. This is the upside down world of Trump inant a market for finished goods. Negotiated
trade logic in which punishing American con- quotas will damage U.S. competitiveness and do
sumers with higher prices is a virtue. The tariff little to alter the trade balance.
had been scheduled to phase out by 2021. KoIn that sense the Korean renegotiation is less
rean companies will probably evade the tariff a triumph than lost opportunity. By focusing on
by building more trucks in the U.S. and export- trade in industrial-age goods, the U.S. missed
ing the parts instead.
a chance to open South Korea further to the serThe U.S. also won some concessions on vices and products of the future. But at least the
South Korea’s onerous customs clearances, Administration didn’t blow up a mutually benewhich have been a protectionist tool. But trade ficial pact with an important ally, and for that
negotiator Robert Lighthizer failed to win a new we can be grateful.
Use Magnitsky Act to Fight Russian Thuggery
In “Kremlin Revenge in Guatemala”
(Americas, March 26) Mary Anastasia
O’Grady rightly draws attention to
the determination of Vladimir Putin’s
cronies to hurt those who defy their
corruption. The yearslong ordeal of
the Bitkov family—their harassment,
persecution and ultimate imprisonment in a Guatemalan jail after fleeing Russia—is astonishing because of
its cruelty. However, the story also
reveals a much larger truth about the
global web of complicity that the
Kremlin will weave to suppress the
rule of law and human rights outside
its own borders.
As chairman and former chairman
of the U.S. Helsinki Commission,
which works to advance international
human rights, we are encouraged by
the release of the first-ever sanctions
list under the Global Magnitsky Act
late last year. We ask that the administration put those responsible for
the harm done to the Bitkovs on this
list. These individuals should be held
accountable for the flagrant torture
and oppression they have inflicted
upon this family, once at the helm of
a thriving paper-mill company and
now unjustly sentenced to years in a
Guatemalan jail.
Russia’s message of intimidation to
the Bitkovs is a familiar one. We’ve
seen before what the kleptocracy will
do to those who challenge its crimes.
We know the stories of Mikhail
Khodorkovsky and Sergei Magnitsky.
In 2012, we championed the Magnitsky Act for the wrongful punishment and death of Magnitsky, who
uncovered massive fraud at the hands
of Russian authorities. Under the law,
those who were complicit in his
death would have their U.S. assets
frozen and any travel to the U.S. denied. The Global Magnitsky Act,
passed four years later, broadens
America’s response to human-rights
offenders around the world.
We have refused to respond to
these stories with silence, and we
cannot tolerate impunity now.
SEN. ROGER WICKER (R., MISS.)
SEN. BEN CARDIN (D., MD.)
Washington
Legal Case Against China’s Trade Is Complex
Your editorial “Tackling China’s
Protectionism” (March 21) discusses
several of China’s “predatory” policies, and then concludes that “all of
these policies violate World Trade Organization agreements.” Unfortunately, that’s not true as the most relevant WTO rules—written in 1994
and for China in 2001—don’t prohibit
the behavior being complained about.
Identifying “strategic emerging industries” and giving them loans on easy
terms isn’t necessarily a violation of
the WTO subsidies agreement. Similarly, for China to give its companies
government help in making foreign
acquisitions isn’t itself prohibited. A
requirement on foreign companies to
license intellectual property in return
for greater access to the Chinese
market isn’t an obvious violation of
any WTO rule. Abusing domestic antitrust law is also not a WTO violation
as the WTO contains little international antitrust law.
The WTO judicial system began issuing rulings against China in 2009,
and but for the counterproductive actions taken by the Obama and Trump
administrations to block appointments to the WTO appellate tribunal,
the WTO’s judicial system could be
functioning well today in making
China more accountable.
You endorse the “tougher line” by
the Trump administration, but inLetters 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.
stead of the unilateral tariffs (e.g.,
steel) the administration has authorized, you propose more targeted tariffs. International trade law prohibits
this sort of self-help by the U.S. alone
or in cooperation with its trade allies.
We should’t allow the trade policies of the Trump administration to
undermine the basic principle of the
WTO’s judicial system, which is the
independent adjudication of disputes.
There are many normative mechanisms inside the WTO and alongside
it that can be used to put pressure on
China, and these should be tested
and exhausted before the blunt instrument of non-WTO-approved trade
sanctions is called on.
PROF. STEVE CHARNOVITZ
George Washington University
Law School
Washington
Pepper ...
And Salt
THE WALL STREET JOURNAL
“I have my own door.”
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | A17
OPINION
Monetary Reform Would Rebalance Trade
By Sean Rushton
C
ontrary to claims coming
from some trade hawks,
America’s large and persistent trade deficit is not
caused primarily by bad
trade deals. The U.S. dollar’s status
as the global reserve currency is at
least as responsible as any free-trade
agreement or unfair practices. High
demand for dollars has tilted the
playing field against American exporters and workers. Those arguing
against tariffs—including Republicans courting blue-collar voters in
the industrial Midwest—should be
leading the charge for international
monetary reform.
The dollar’s status as
global reserve currency
is as responsible as bad
agreements for the deficit.
Before World War I the international gold standard amounted to an
independent, relatively stable and
universally accepted global currency.
That system broke down during the
interwar years. Then, at the Bretton
Woods conference after World War
II, the victorious Allies decided that
the U.S. dollar, backed by gold, would
be the international reserve currency
to which exchange rates would be
fixed. But this “gold exchange standard” was fatally flawed: The world’s
need for dollar reserves soon outstripped America’s gold supply.
In the 1950s and ’60s, the U.S. ran
big trade deficits with its Cold War
allies Japan and Germany, as they rebuilt their manufacturing bases and
stockpiled dollars. By the early
1970s, American policy makers were
fed up. They severed the dollar’s link
to gold and allowed the greenback’s
value to float relative to other currencies, in the hope that it would depreciate and smoothly reduce the
trade deficit.
The opposite happened. No longer
bound by fixed exchange rates and
dollar convertibility, the U.S. government’s fiscal discipline broke down.
Federal debt as a percentage of gross
domestic product, which had been
falling since the end of World War II,
soon began rising steadily. As a matter of national income accounting,
Johns Hopkins economist Steve
Hanke has explained, a rising fiscal
deficit means a rising trade deficit.
The nearby chart shows how the U.S.
trade balance dropped sharply into
negative territory.
In the bedlam of floating exchange
rates, demand for dollars soared.
Many nations abhorred having their
currencies—and thus their economies—jerked up and down because of
decisions made by central bankers in
the U.S. and other large economies.
To defend against crises, especially
at times of major U.S. monetary easing or depreciation, foreign governments stockpiled dollars. In 1973 the
world held $500 billion in foreign-exchange reserves (in 2017 dollars); last
year it was $11 trillion, a 22-fold increase. About two-thirds of total reserves are now denominated in dollars. Because of high global demand,
Whence the Deficit?
Merchandise trade balance and current account balance as a share of GDP
Floating exchange rates
the dollar’s international position is
always stronger and U.S. interest
rates are lower than they would be
otherwise. This, in turn, means that
America’s budget and trade deficits
swell in tandem, while U.S. exports
are costlier and imports are cheaper,
regardless of trade practices.
Such a dynamic has made it difficult for American companies to add
manufacturing jobs inside the U.S.
Meantime, the finance industry—
driven by profits from trading currencies and hedging the associated
risk—has grown from about 2% of
GDP to more than 9%.
Leveling the playing field will require reducing global demand for
dollars, first by stabilizing the dollar
and other major currencies, then by
establishing a new international reserve currency. Here’s how to do
that:
First, to guide monetary policy,
Federal Reserve appointees should
commit to targeting the real-time
prices of an index of commodities,
plus foreign currencies and bonds.
Such an approach would have prevented the Fed’s biggest recent errors. Easy money in the 1970s and
2000s led to large increases in world
dollar holdings, price bubbles and
crashes.
Second, the U.S. should invite
other major currencies—starting
with the second-largest, the euro—to
stay steady with the dollar. A dollareuro stability pact, later including
Japan and other democracies, would
stabilize demand for dollars. A recent
International Monetary Fund communiqué expressed positive sentiments
on this front: “We recognize that excessive volatility or disorderly movements in exchange rates can have adverse implications for economic and
financial stability. We will refrain
from competitive devaluations, and
will not target our exchange rates for
competitive purposes.”
Third and most controversial, the
U.S. and other leading economies
should establish a new international
currency for pricing global commodities and settling trade accounts. Nations would keep their own currencies for domestic use, exchanging
them for the international currency
at fixed rates.
The Nobel laureate Robert Mundell
suggested such an international currency, to be backed 50% by gold and
50% by the world’s five leading currencies. Rep. Jack Kemp once proposed solving the “reserve currency
curse” with a return to the full international gold standard. Other ideas,
such as expanded use of the IMF’s reserve asset, the Special Drawing Right,
are also worth considering.
If the U.S. has reached the end of
its rope and is unwilling to feed the
world’s demand for dollars through
its trade deficit, then international
monetary reform is the answer. It
would put U.S. trade on a more level
playing field, enforce fiscal discipline
in Washington, and help millions of
American workers.
Mr. Rushton is director of the Project on Exchange Rates and the Dollar
at the Jack Kemp Foundation.
Republicans Remain Silent as Mulvaney’s CFPB Ducks Oversight
By Elizabeth Warren
F
rom the moment Congress created the Consumer Financial
Protection Bureau, Republican
critics ranted about the CFPB’s supposed lack of accountability. Now
that one of those critics, Mick Mulvaney, has assumed control of the
bureau, the attackers have fallen silent—even as Mr. Mulvaney disregards legal mandates and dodges
congressional oversight. This turnabout shows Republicans never really cared about accountability. They
only wanted the agency to be less effective at stopping financial firms
from cheating people.
Congress designed the CFPB to be
the government’s most accountable
bank regulator and created strict
guidelines for its mission and operations. Every bank regulator is funded
outside the regular appropriations
process, but the CFPB has unique additional checks. The bureau is legally
required to report to Congress twice
a year on its activities, and its director must testify before Congress four
times each year. The CFPB’s rules
can be overruled by the Financial
Stability Oversight Council, a veto
that applies to no other federal
agency.
Since Mr. Mulvaney took control,
he has ignored congressional mandates, turning the CFPB into the politicized rogue agency he accused it of
being before. Example: The law requires the CFPB to create an Office of
Fair Lending and Equal Opportunity,
which “shall have such powers and duties . . . including providing oversight
and enforcement of Federal laws”
against discrimination in lending. That
language is unambiguous, but Mr.
Mulvaney, long an opponent of the office’s work, summarily stripped it of
oversight and enforcement powers.
Republicans remained silent.
Mr. Mulvaney also flouted DoddFrank’s mandate that the CFPB “require reports and conduct examinations” of banks under its jurisdiction.
In December he halted collection of
confidential information by the bureau, temporarily stopping bank examinations. Mr. Mulvaney claimed
that two reports by the bureau’s inspector general showed severe vulnerabilities in the bureau’s cyber defenses. Instead they found CFPB’s
cybersecurity was better than other
regulators and steadily improving.
When I pressed Mr. Mulvaney on
this point in an oversight letter, he
did not defend his interpretation of
the reports and offered no legitimate explanation for halting bank
examinations. Republicans remained
silent.
Mr. Mulvaney also threatened the
credibility of the agency’s workforce.
To insulate the CFPB from politics,
Congress gave it only one political
The acting director has
undermined the bureau’s
work defending the public.
appointee—the director—and mandated that it hire all other employees
based on merit. When Mr. Mulvaney
arrived, he sought special authority
to hire political allies to oversee the
bureau’s divisions—an unprecedented move among financial regulatory agencies. He has also reassigned
some duties from experienced senior
officials to political staff, claiming
that many career staffers “were political anyway.” Republicans remained silent.
Mr. Mulvaney has skirted other
limits, too. Before he took over, the
CFPB finalized a rule to stop abusive
payday-lending practices. The bureau
spent five years completing the legally mandated rule-making process,
compiling an extensive factual record by meeting with stakeholders,
reviewing more than a million comments, and conducting a cost-benefit
analysis. Mr. Mulvaney summarily
killed the rule when he arrived, even
though he was legally required to
provide a detailed justification for
his decision. The move was carried
out without any formal fact-finding
or solicitation of public comments—
just a two-paragraph press release.
Republicans remained silent.
I’ve written Mr. Mulvaney several
letters containing a total of 125
questions about these and other decisions he’s made at the CFPB. Mr.
Mulvaney has failed to respond to
more than 100 of those questions. If
Republicans truly cared about the
accountability of the CFPB, they
would have pressed Mr. Mulvaney to
respond to congressional oversight
questions. Instead, they remained
silent.
Republicans have ignored other
oversight tools as well. The Senate
confirmation process helps ensure
that agencies adhere to Congress’s
priorities. Yet Mr. Mulvaney has
served as acting director for four
months, and not a single Republican
has called on the president to nominate a permanent director.
Congress designed the CFPB to be
a nimble watchdog for America’s
consumers, accountable to Congress
in the execution of its duties. Under
the leadership of former Director
Richard Cordray, it was exactly
that—returning $12 billion to families who were cheated, issuing new
rules to clean up the mortgage market, and responding to congressional
oversight from both parties.
Mr. Mulvaney has undermined the
bureau’s work on behalf of consumers and has repeatedly failed to comply with legal mandates, while the
Republicans who control Congress
have refused to use the tools available to them to rein him in. I intend
to use every tool available to me to
make sure the CFPB follows the law
and stands up for consumers.
Ms. Warren, a Democrat, is a U.S.
senator from Massachusetts.
When a Ballplayer Earned $50,000—and It Was a Dirty Secret
By Bob Greene
F
inally, after years of searching,
I’d found it. It was like coming
across the Dead Sea Scrolls,
baseball edition:
“The truth is that life in the major
leagues is far from a picnic. I’m explaining, not complaining, but believe
me, even though deep down I know it
isn’t true, I feel that I’d be just as
happy if I never played another baseball game again. . . . With endorsement fees, my salary and my winning
World Series share, I earned about
$50,000 last season. You can put up
with a lot for that kind of money. I
did. I mean, the pay is good, but they
take it out of you in sweat and worry.
Baseball in the big leagues isn’t like
the baseball you play when you’re a
kid.”
The words belonged to Duke
Snider, the great center fielder for
the Brooklyn Dodgers. With a new
Major League Baseball season opening Thursday, I tried once again to
find the Snider essay. Long forgotten,
it was a stark demarcation point between the gauzy, time-honored childhood fantasy of big-league ballplayers competing because they adored
the game, and everything coldly cashand contract-centered that would follow. How controversial were Snider’s
words? Fathers would deny to their
baseball-loving sons that the essay
even existed. The magazine in which
it was published was hidden away at
the bottom of those dads’ shirt drawers. Young minds, the fathers feared,
would be unable to process Duke’s
message.
The first-person essay—as told to
sportswriter Roger Kahn—was featured in the May 25, 1956, issue of
the now-defunct Collier’s magazine.
I’d always heard it was in the Saturday Evening Post, which explains why
I had been unable to find it for so
long. When I finally hunted down the
issue, there were the words splashed
across the cover: “I play baseball for
money—not fun. By Duke Snider.”
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In those years, the idea of a beloved ballplayer saying he was in it
for the money was as jarring a notion
as Dwight D. Eisenhower saying he
was a communist, or John Wayne
saying his real passion was collecting
Russian nesting dolls. It sounded unAmerican.
So no wonder dads concealed the
essay from their kids, or tried to dismiss the rumor by saying Duke had
been joking. This was in the pre-freeagency era, before Marvin Miller, as
executive director of the Major League
Baseball Players Association, revolutionized the economics of professional
athletes’ compensation. In 1967, the
year before Miller began negotiating
on behalf of players, the average major-league salary was $19,000, and the
minimum salary was $6,000. This year,
the average salary for a player—the
average salary—will be north of $4
million. The minimum salary will be
$545,000. That’s for the last player off
the bench on a last-place team.
A direct line can be drawn between
Snider’s shocking-at-the-time confession and the modern professional athlete’s demand, immortalized in the
1996 movie “Jerry Maguire”: “Show me
the money!” Yesterday’s blasphemy is
today’s mantra.
Back then it was common for bigleague ballplayers to work construction jobs or sell insurance in the offseason. The gap between how
ballplayers and fans lived was not so
wide. Major leaguers routinely rode
‘I play baseball for money,’
Duke Snider confessed
in 1956. Today the average
player makes $4 million.
the bus to the ballpark, side by side
with ticket holders. After hitting
baseball’s most fabled home run, “the
shot heard ’round the world,” to beat
the Dodgers for the 1951 National
League pennant, the New York Giants’
Bobby Thomson took the ferry home
to Staten Island, stopping off to say
hello to his older brother Jim at the
firehouse where he worked.
Baseball was much more popular
then, truly the national pastime. By
contrast, the most recent Gallup poll
measuring the public’s devotion to
spectator sports found that baseball
has fallen behind basketball for the
first time. Only 9% of respondents
said baseball is their favorite (football
remains at the top, with 37%).
Still, baseball’s rewards are enormous. Center fielder Mike Trout of
the Los Angeles Angels will earn
more than $34 million this season.
Snider, who died in 2011, won’t be
around to watch Mr. Trout play, but
something else irked him about baseball life in the 1950s. Dodgers manager Charlie Dressen once raged at
the players for ordering cauliflower
with their meals in the dining room
of the team’s hotel:
“Creamed cauliflower? You [blanking] wise guys got nothing better to
do than order creamed cauliflower at
75 cents extra?”
Duke wrote that he volunteered to
let Dressen deduct the 75 cents from
his paycheck. “Show me the cauliflower!” may not have quite the same
ring to it as “Show me the money!”
But such was life in the big leagues.
Mr. Greene’s books include “Chevrolet Summers, Dairy Queen Nights.”
Notable & Quotable: Paradox of ‘Privilege’
From “The Privilege Paradox” by
Samuel Biagetti, Quillette.com,
March 27:
Antipathy to ‘privilege’ has become de rigueur among precisely the
social class that would previously
have been considered among the
most privileged.
This apparent irony is not an accident. Rather, the re-definition of
‘privilege’ in terms of identity
rather than wealth serves precisely
to protect privilege in the older
sense. Privilege talk forms an integral part of the worldview that contemporary colleges propagate, and
that students often fiercely advance
and defend on their campuses—and
the more elite the college, the more
aggressive the defense. As Richard
V. Reeves and Dimitrios Halikias of
the Brookings Institution have
shown, the more a college’s student
body is dominated by high-income
students, the more likely that college is to disinvite speakers whose
views the students reject. When an
elite college refuses to disinvite a
speaker, as Middlebury did with regard to Charles Murray, the resulting violence left a professor in a
neck-brace.
A conservative critic might view
the Middlebury incident last year as
an instance of liberal political correctness run amok—but this neglects
the crucial question of motivation.
Why would largely affluent college
students, seated near the peak of the
global social pyramid, turn so fiercely
against a speaker like Murray? Cui
bono? Students’ ideological crackdowns on their opponents do not actually suppress the views that they
abhor. Instead, they serve to dominate social and political debate, fueling the constant media and academic
furor over symbolic identity issues—
and shifting the focus away from
wealth and economic inequality.
.
A18 | Thursday, March 29, 2018
* ****
THE WALL STREET JOURNAL.
WORLD NEWS
Myanmar Grapples With Aging Leaders
The ruling party lacks
new blood to inherit
power and keep check
on its military rivals
Two years after taking office, the graying leadership of
Myanmar’s ruling party lacks
a new generation to inherit
power, jeopardizing the prodemocracy camp’s ability to
check the power of its military rivals.
Over the past two weeks,
Myanmar’s 71-year-old president resigned, citing a desire
for rest; Aung San Suu Kyi, 72,
the country’s pre-eminent civilian leader, canceled a speaking engagement, citing ill
health; and the Nobel Prize
winner’s party was forced to
address swirling rumors she
may soon retire.
Win Myint, a 66-year-old
Suu Kyi loyalist was picked
Wednesday as the new president—effectively a ceremonial
role. Two-thirds of the ruling
National League for Democracy’s elite Central Executive
Committee is over the age of
65—the male life expectancy
in Myanmar—according to
REUTERS
BY JON EMONT
Civilian leader Aung San Suu Kyi, right, with Win Myint, who was chosen as president on Wednesday.
party data.
Many experts say the party,
which won Myanmar’s first
relatively free and fair elections since the military took
power in 1962, risks losing its
struggle with the institution if
it fails to groom a new generation of leaders. The military
retains control of key government ministries and a quarter
of seats in parliament.
“It is a serious problem for
Myanmar, for the NLD, and for
Aung San Suu Kyi,” said Aaron
Connelly, research fellow in
the East Asia Program at the
Lowy Institute, on the lack of a
new crop of leadership talent.
“The leadership of those
around her, who refuse to tell
her hard truths, has been
wanting.”
The NLD came to power
with the hope of reforming the
economy and education system, and even amending the
constitution to curb the mili-
tary’s power. But critics say
Ms. Suu Kyi and the party have
failed to deliver on their
promises, in part because of a
highly centralized leadership
style that places all decisions
in the hands of the Nobel laureate and her confidants.
The NLD’s leadership is
viewed by some as a symptom of a larger issue: Party
leaders are chosen based
largely on their loyalty to Ms.
Suu Kyi, and often stay past
their prime.
On Sunday, Win Htein, 76
years old, a central executive
committee member and former Suu Kyi aide, returned to
Myanmar from a vacation in
Australia to announce that Ms.
Suu Kyi had rejected his offer
of resignation.
In a recent shuffling, Zaw
Myint Maung, 66, a Suu Kyi
loyalist who serves as chief
minister of the Mandalay region, as well as in a regional
legislature, was formally made
one of the national party’s
chief spokesmen.
“The NLD at present seem
to be recycling the same top
leaders,” said Soe Myint
Aung, founder of the Tagaung
Institute of Political Studies,
a policy research institute in
Yangon.
Ecuador Punishes WikiLeaks Founder for Meddling in Politics
FRANK AUGSTEIN/ASSOCIATED PRESS
BY RYAN DUBE
AND WIKTOR SZARY
Julian Assange at the Ecuadorean Embassy in London in May.
Ecuador cut Julian Assange’s internet connection at
its London Embassy after the
WikiLeaks founder criticized
Britain and its allies for expelling Russian diplomats following the poisoning of a former
Russian spy.
Ecuador’s Foreign Relations
Ministry said Wednesday that
Mr. Assange had violated a
written agreement with Ecuador preventing him from meddling in the political affairs of
other nations. The ministry
said Mr. Assange’s social-media posts risked undermining
Ecuador’s relations with Britain, other nations, and the European Union.
Mr. Assange has been living
in the London Embassy since
2012, when ex-President Rafael Correa granted him political asylum. Ecuador’s current
President Lenín Moreno has
broken with Mr. Correa and
looked to improve relations
with several countries that Mr.
Assange has criticized.
Ecuador’s move comes after
the U.S., Canada and over a
dozen European nations expelled Russian diplomats and
intelligence officers in response to the poisoning of former Russian spy Sergei Skripal
and his daughter in Salisbury,
England.
U.K. Prime Minister Theresa
May has said it was highly
likely that Russia was behind
the use of a military-grade
nerve agent against the former
double agent. Russia has denied involvement.
On Monday, Mr. Assange
criticized on Twitter the expulsions of the Russian officials as “poor diplomacy,” calling the evidence against
Moscow circumstantial. He
said it would help Russia “further a narrative that is under
conspiratorial siege led by the
U.S.”
A British minister criticized
Mr. Assange for his tweets.
“It is of great regret that Julian Assange remains in the Ecuador Embassy,” Alan Duncan,
a foreign affairs minister, told
Parliament on Tuesday. “It is of
deeper regret that even last
night he was tweeting against
Her Majesty’s government for
their conduct in replying to the
attack in Salisbury.”
Ecuador has been looking
for ways to have Mr. Assange
leave the embassy. In December, Ecuador granted Mr. Assange citizenship. But the British government said that
wouldn’t prevent his arrest if
Mr. Assange were to step outside the embassy.
.
TECHNOLOGY: FACEBOOK CURBS INFORMATION IT EXCHANGES WITH DATA BROKERS B4
BUSINESS & FINANCE
© 2018 Dow Jones & Company. All Rights Reserved.
S&P 2605.00 g 0.29%
S&P FIN À 0.16%
S&P IT g 0.87%
Thursday, March 29, 2018 | B1
THE WALL STREET JOURNAL.
* * * *
DJ TRANS À 0.07%
WSJ $ IDX À 0.73%
LIBOR 3M 2.308
NIKKEI 21031.31 g 1.34%
See more at WSJMarkets.com
Tesla’s Shares, Bonds Fall Further Telecoms’
Pay Gap
BY SAM GOLDFARB
AND TIM HIGGINS
Heavy selling of Tesla Inc.
shares and bonds persisted
Wednesday, posing a new
challenge to the electric-car
maker that has relied on the
faith of investors to meet
pressing cash needs.
The company’s shares fell
$21.40, or 7.7%, to $257.78, extending a weekslong decline
that deepened Tuesday amid
broad weakness among tech-
STREETWISE
By James Mackintosh
The Market
Awakens
To Risks
Facing Tech
The highflying technology stocks
had been ignoring rising
threats for a
while. Reality reasserted itself on Tuesday.
The immediate cause for
plummeting tech shares was
company-specific: Chip
maker Nvidia Corp. halted
road tests of driverless vehicles after an Uber Technologies Inc. test car was involved in a fatal crash, and
Facebook Inc. CEO Mark
Zuckerberg will be hauled
before Congress. The announcements highlighted the
risks to two of the biggest
tech disruption themes, selfdriving cars and social media.
But the market fall wasn’t
just about Facebook and
Nvidia, or even self-driving
cars and social media, although the themes mattered,
with Tesla Inc. dropping
more than Nvidia and Twitter Inc. losing more than
Facebook.
Instead, the market is
waking up to an even
broader threat: politics. It
might also be sniffing another danger from economics.
The political risk is obvious for Facebook, which
stands at the unpleasant intersection of privacy fears
and fake news. Facebook is
accused of unwittingly aiding the manipulation of the
U.S. election by Russian
agents, of helping swing the
Brexit referendum and,
linked to both cases, failing
to notice that the personal
details of 50 million users
had been snatched.
The arguments about who,
what, where and why are far
from being resolved, but
Facebook highlights the
forces gathering against tech
investors. Disruptive companies are bound to make powerful enemies in old industries, but the tech companies
have alienated many natural
supporters among the wider
public through their swagger, wealth and tax avoidance.
Cities and states were
first to flex their muscles,
forcing companies such as
Uber and Airbnb Inc. to follow local rules and pay
taxes. The threats now are
much bigger.
The European Commission
is pushing for a 3% tax on
the revenue of internet giants, while pressure is increasing for “gig economy”
workers to be treated as employees.
The rush by companies to
pull their ads from Facebook
may be merely temporary,
but it shows just how far the
social network has slumped
in public opinion and how
Please see STREET page B10
nology stocks, increased scrutiny of the company’s semiautonomous driving system, and
a credit-rating downgrade
from Moody’s Investors Service.
Tesla’s 5.3% unsecured
bonds that mature in 2025, issued last August when the
company’s stock price was
near its height, touched a low
of 86 cents on the dollar—
translating to a 7.8% yield—before ticking up to 88 cents, according to MarketAxess.
The concerns about Tesla’s
value come as investors take a
harsher look at some other
companies that helped drive
stock indexes to records earlier this year, including tech
giants Facebook Inc. and
Google parent Alphabet Inc.
The situation is especially
noteworthy, because Tesla’s
near-term financial viability
depends on its access to the
capital markets. The company,
Elon Musk has
defied skeptics
with his ability
to create
enthusiasm for
an electric-car
brand.
investing heavily to bring out
its mass-market Model 3 sedan, burned through on average about $1 billion in cash
each quarter last year, and an-
alysts expect a similar pace
this year until production
kicks into a higher gear and
generates new revenue.
Tesla’s $1.8 billion unsecured bond issuance last August was part of a wide-ranging search for cash that has
also involved repeated equity
raises and sales of convertible
bonds and asset-backed securities. Unlike most corporatebond offerings, which are marketed based on credit metrics
such as free cash flow and
debt-to-earnings ratios, Tesla’s
bonds originally met strong
demand from investors in part
because of the company’s eyepopping stock valuation,
which suggested it could always raise cash from other
sources.
Tesla’s latest run as a stockmarket darling has only recently met turbulence. Its
shares soared 46% last year,
pushing its market value above
that of Ford Motor Co. and General Motors Co.—profitable auto
makers with more than 100
years of experience and far
more sales.
Investors endorsed Chief
Executive Elon Musk’s vision
that Tesla will be at the vanguard of a world with all-electric cars that drive themselves.
That vision, however, is
Please see TESLA page B2
Heard on the Street: Tesla is
running short on time..........B12
As Europe Prospers, Stocks Fizzle
European stocks have returned slightly more than their U.S.
peers in dollar terms but have underperformed in euro terms...
...and eurozone economic data are now coming in lower than
analyst estimates.
Total return of equity indexes in the last 12 months
Citigroup Economic Surprise Index
30%
100
20
Stoxx Europe
600 (dollars)
s15%
10
S&P 500
s14%
0
Stoxx Europe
600 (euros)
s0.3%
–10
2017
50
U.S.
0
–50
t
Economic data
below expectations
–100
2018
2016
’17
’18
...as analysts have lowered their expectations
for European earnings.
Difference between S&P 500, Stoxx Europe 600 price/earnings ratios*
Forecasts for earnings per share in 2018, change since Dec. 2015
0%
s
European stocks
more attractive
3
S&P 500
–5
2
–10
1
–15
0
Stoxx Europe 600
–20
2016
’17
’18
2016
’17
*12-month forward-looking earnings
Sources: FactSet (S&P 500, Stoxx Europe 600, p/e ratios, forecasts); Citigroup via FactSet (Economic Surprise Index)
BY JON SINDREU
AND MIKE BIRD
Europe’s economic boom
and its stable politics have fulfilled investors’ deepest wishes
over the past year. All bar one:
European stocks have barely
made them a single euro.
In the past 12 months, the
Stoxx Europe 600 has delivered
only 0.3% gains in local-currency
terms, accounting for both
share-price appreciation and
dividends, compared with a 14%
total return for the S&P 500.
That is mainly because Europe’s rosier outlook has
boosted the euro 14% against
INSIDE
the dollar during the same period, eroding the value of overseas earnings from domestically listed companies. About
half the revenue of the Stoxx
Europe 600 comes from
abroad, FactSet data show. For
the S&P 500, it is 30%.
Investors are also striking a
cautious note about European
stocks, unsure whether profits
can continue to surprise on
the upside and concerned
about the potential threat of
protectionism on the region’s
indexes, which contain many
companies that export goods.
So, after a period of upward
revisions, some investors and
banks are beginning to downgrade their expectations for
European stocks this year.
“We came into the year
quite excited about Europe.
But in the past month and a
half we have scaled back” exposure to European stocks,
said Eric Freedman, chief investment officer at U.S. Bank
Wealth Management, which
manages $151 billion.
Even measured in dollars, the
Stoxx Europe 600 has returned
15% over the past year, only 1
percentage point more than the
S&P 500. Yet most analysts and
investors say there is a bigger
risk that the U.S. expansion will
BY THEO FRANCIS
To many consumers, Verizon Communications Inc. and
AT&T Inc. look a lot alike: two
telecom giants with national
footprints that sell mobile
phone, internet, landline telephone and even television service. To their rank-and-file
workers, however, the two
firms are a world apart.
At least that is what it
looks like from newly disclosed pay figures, which show
Verizon paid its median employee nearly $127,000 last
year while AT&T’s median
worker made about $78,000.
Does Verizon really pay
rank-and-file employees about
60% more than its closest rival? The gap illustrates fundamental differences in the way
the rivals operate that filter
down to how workers are paid.
But it also highlights some of
the limitations of a new requirement from the Securities
and Exchange Commission
that U.S. publicly traded companies disclose what they pay
their median workers.
Eurozone
Stocks in Europe are cheaper than in the U.S.,
but the gap has narrowed...
4
Hides Full
Picture
’18
THE WALL STREET JOURNAL.
slow in the near term than that
Europe’s will.
Stripping out the surge that
followed the victory of promarket candidate Emmanuel
Macron in France's presidential elections last year, European stocks have severely underperformed their U.S. peers
in dollar terms.
Economists expect the eurozone’s gross domestic product to expand 2.3% this year,
compared with 2.8% growth in
the U.S., according to an average of forecasts compiled by
FocusEconomics.
The Citigroup Economic
Please see FIZZLE page B2
Pay figures for
Verizon, AT&T point
to basic differences in
how each operates.
First, the differences between the two companies:
AT&T is based in Texas,
where salaries for similar jobs
tend to be lower than they are
in the Northeast, where Verizon is based.
In addition, both firms grew
out of Ma Bell’s breakup in
1984, but since have focused
to different degrees on parts
of the phone business that require different types of workers. What is now AT&T started
life as Southwestern Bell and
expanded in part by acquiring
other landline operators. By
contrast, Verizon—heir to
Northeastern “Baby Bells” as
Bell Atlantic—focused more on
expanding wireless service,
and in recent years has shed
some wireline assets.
That leaves AT&T with
more so-called pole climbers—
the installation, repair and
maintenance workers that
make up much of the telecom
industry—as well as more regional office staff, said Jeffrey
Moore, a telecom-industry analyst and principal of Wave7
Research.
“It’s much more of a physical
business,” Mr. Moore said.
Please see PAY page B2
Lawsuits Over iPhones Begin to Cluster
BY TRIPP MICKLE
AND KIRSTEN GRIND
VIEWERS MAKE
‘ROSEANNE’
GREAT HIT AGAIN
TELEVISION, B3
BARRICK GOLD’S
FREEWHEELING
FOUNDER, 90
OBITUARY, B6
Dozens of iPhone owners
are taking Apple Inc. to court
over its disclosure that it
slowed down old phones to
preserve battery life, in what
could become one of the biggest legal challenges involving
the company’s smartphone
since its 2007 debut.
Some five dozen iPhone
customers have filed at least
59 separate lawsuits since December accusing Apple of
slowing their phones to spur
people to buy new iPhones, according to court records. Apple
said in December that its software update introduced at the
start of 2017 reduced the performance of older phone models. The suits seek an unspecified financial award, attorneys’
fees and free iPhone battery
replacements, as well as a corrective advertising campaign.
The lawsuits also seek
class-action status. Efforts to
combine the cases will kick off
at a March 29 legal meeting in
Atlanta, setting in motion an
effort to have the class certi-
BLAINE MCCARTNEY/THE WYOMING TRIBUNE EAGLE/ASSOCIATED PRESS
Its stock slides 7.7%,
debt touches a low
amid concerns about
the company’s value
The complaints stem from a software update that reduced the performance of older phone models.
fied. A lead attorney and a
court location also will be chosen.
Class-action lawsuits are
frequently filed against big
companies, but the large number of individual suits concerning a single issue is unusual,
say legal experts. It is also
roughly triple the number of
suits filed in 2010 over the
iPhone 4’s tendency to drop
calls.
Apple settled the resulting
class-action lawsuit in 2012,
agreeing to either pay iPhone
4 owners $15 or give them a
free case, according to Ira
Rothken, an attorney who represented the plaintiffs. The to-
tal
potential
settlement
amount was $315 million.
The latest spate of iPhone
lawsuits could present Apple
with unique challenges. The
company is already working
hard to convince consumers
that its newest devices are
worth $1,000 or more, as
Please see APPLE page B4
.
B2 | Thursday, March 29, 2018
INDEX TO BUSINESSES
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
BAIC Motor...............B12
Barrick Gold.........B6,B12
Bioverativ....................A8
BlackRock....................B2
BMW ........................... B4
Boeing ......................... B4
B&S International.....B11
BYD............................B12
C
CACI International......B3
Cambridge Analytica..B4
CBS..............................B3
Chevron ....................... B6
Cigna ........................... A8
CME Group................B10
Comcast.......................B3
Concho Resources.......B6
Contemporary Amperex
Technology..............B12
Credit Karma.............B10
CSRA ........................... B3
D-E
Daimler........................B4
Daoine Centric ............ B6
Deutsche Bank .... B2,B10
ENI...............................B3
Epilson Data
Management.............B4
Equifax ........................ B3
Express Scripts Holding
.....................................A8
Exxon Mobil................B6
F-G
Facebook
.............A1,A2,B1,B4,B11
Fair Isaac.....................B3
4C Insights..................B4
Geely Automobile
Holdings..................B12
General Dynamics.......B3
General Electric .......... B3
GlaxoSmithKline.........A8
Google.........................A2
H-I
HCA Healthcare..........B2
HireVue........................B6
Intercontinental
Exchange.................B10
J-L
Janus Henderson Group
...................................B11
Jefferies Group...........B6
London Stock Exchange
Group.......................B10
Lyft..............................B4
Hospital Giants Halt Merger Talks
P-R
Panasonic..................B12
Providence St. Joseph
Health ....................... B2
Remington Outdoor....A2
Royal Dutch Shell.......B3
RSP Permian...............B6
BY MELANIE EVANS
Two major hospital systems
halted talks about a possible
merger, shelving for now the
prospect of a combination that
would have created the nation’s largest owner of hospitals, according to people familiar with the discussions.
Ascension, the largest U.S.
nonprofit hospital system, and
Providence St. Joseph Health,
also a major nonprofit hospital
owner, put talks on hold to restructure as more medical care
moves outside of hospitals,
putting pressure on their core
operations, according to the
people. A big, complex merger
would split attention between
restructuring and combining
the two giants, the people said.
Should merger talks resume, it likely wouldn’t be
soon, the people said.
Providence is focused on
improving its financial performance and increasing its investment in digital, retail and
ambulatory health care, one of
the people said.
In 2016, Providence Health
& Services and St. Joseph
Health System merged, creating a regional hospital giant
with an operating loss that
year of $225 million, financial
filings show. The system
roughly broke even in 2017.
Ascension’s directors recently endorsed a new strategic direction to boost growth
and labor productivity, which
one of the people cited as a
reason for why the timing of
the merger didn’t work.
The new strategy is a response to continued pressure
S
Sanofi..........................A8
Shire............................A1
Silver Lake................B10
Social Finance...........B10
SoftBank Group...B4,B10
Synchrony Financial....B3
Syndio..........................B6
T
Takeda Pharmaceutical
.....................................A1
Tencent Holdings........A2
Tesla.....................B1,B12
Twitter ........................ B1
U
Uber Technologies
........................ B1,B4,B10
Ulferts International B11
Ultimate Software
Group.........................B6
UOB Kay Hian
Securities (Thailand)
...................................B11
M-N-O
V-W
Most Kwai Chung.....B11
Netflix.......................B11
Newmont Mining......B12
NEX Group ................ B10
Novartis ...................... A8
Nvidia..........................B1
Oracle .......................... B4
Verizon Communications
.....................................B1
Walt Disney................B3
Warburg Pincus .......... B3
Wells Fargo...............B10
WeWork .................... B10
WikiLeaks ................. A18
INDEX TO PEOPLE
A
Goodman, John...........B3
Asbury, Kenneth.........B3
J
P
B
Johnson, Brian............B2
John Williams...........B10
Jun, Ying.....................B3
Padovani, Chiara.........B3
C
Cardinalle, Anthony..B12
Cheung, Alvin............B11
Cook, Tim....................B4
Cryan, John...............B10
D
do Rego Barros, Paulino
.....................................B3
E
Everson, Carolyn.........B4
F-G
Formica, Andrew.......B11
Freedman, Eric............B1
K
Keeney, Tasha.............B2
L
Langan, Colin .............. B2
Latif, Wasif...............B11
Leung, Steven...........B11
Levandowski, Anthony
.....................................B4
Lin, Kenneth..............B10
M-N
MacKenzie, Gwen.......B2
McCormick, Mark......B11
Metcalf, Laurie............B3
Meyhofer, Eric ............ B4
Moore, Jeffrey............B1
Munk, Peter................B6
Musk, Elon...........B1,B12
FIZZLE
Continued from the prior page
Surprise Index, a broadly
tracked measure of how expectations are being met, has
edged down in the U.S. but remains at multiyear highs,
meaning U.S. data are still
broadly matching forecasts.
In the eurozone, the index
has dropped to its lowest level
since March 2016.
“We still have the synchronized recovery in the global
economy,” said Ewout van
Schaick, head of multiasset at
Dutch asset manager NN Investment Partners, which has
€246 billion ($305.2 billion)
under supervision. “But, at
least for the moment, it can’t
surprise more to the upside.”
Mr. Van Schaick removed
his fund’s bias in favor of European stocks after purchasing
managers’ surveys released
last week showed that the eurozone economy expanded in
March at its slowest pace
since the start of 2017.
After that data, Citigroup’s
strategists also downgraded
their expectation of where
they believe the Stoxx Europe
600 will finish this year, to
420 points from 460. On
Wednesday, the index rose
0.5%, to 369.26.
TESLA
Continued from the prior page
now being tested. On Tuesday, Waymo, the self-driving
unit of Alphabet, said it
would buy as many as 20,000
all-electric SUVs from Jaguar
Land Rover to deploy as part
of a robot taxi fleet. The deal
is a direct threat to a Tesla
self-driving technology unit
that already has been racked
with turnover.
Also on Tuesday, the National Transportation Safety
Board opened a second investigation into a Tesla crash,
this one a fatal incident last
week near Mountain View,
Calif. The agency said it is
unsure if Tesla’s semiautonomous system was in operation during the crash. Tesla,
while touting the record of its
Autopilot system, said it
hadn’t been able to access the
vehicle’s computer logs to understand what happened.
The Waymo announcement
and NTSB investigation both
help “reinforce our view that
[Tesla] is behind the curve in
autonomous driving,” undercutting the bullish case for its
stock, Brian Johnson, a longtime automotive-industry analyst for Barclays, wrote in a
R
Raedler, Sebastian......B2
Repetto, Rich............B10
Robinson, Peter..........B3
Ron, Lior......................B4
S
Sherman, Rob ............. B4
Smith, Richard............B3
So, Daniel..................B11
Son, Masayoshi .......... B4
Steel, James.............B12
Stoeckle, Mark..........B12
T
Ascension and Providence St. Joseph suspended talks to form a
hospital system spanning the country.
States where the operators are present:
Ascension
Providence St. Joseph Health
Both
Wash.
Mont.
Minn.
Ore.
Wis.
N.Y.
Mich.
Conn.
Md.
D.C.
Ill. Ind.
Kan.
Calif.
Ariz.
Okla.
N.M.
Mo.
Ark.
Ky.
Tenn.
Miss. Ala.
Texas
Ga.
Source: the hospital operators
from insurers seeking to reduce reimbursement, as well
as a changing landscape with
new competitors and patients
who want to avoid costly hospitals, Ascension’s Chief Executive Anthony Tersigni said
in a briefing to employees,
according to a transcript
viewed by The Wall Street
Journal.
Ascension’s operating margin declined in fiscal 2017,
ended June 30, its financial
statements show. Its operating
margins continued to shrink in
the first half of this fiscal year.
Ascension has cut executive
pay, is adjusting its nurse
staffing, and will slash $61
million from its administrative
costs in 2019, after prior efforts squeezed $400 million
Ascension-Providence
deal would have
created largest owner
of hospitals in U.S.
La.
Fla.
Alaska
THE WALL STREET JOURNAL.
from administrative overhead,
Mr. Tersigni told employees.
In Michigan, Ascension is expected to reduce its local market workforce by about 600
jobs, or 2.3%, according to an
Ascension email sent this
month and reviewed by the
Journal. Crain’s Detroit Business earlier reported the layoffs.
Job cuts come “as we see
changes in the number of patients we are caring for,” said
the email, which was sent on
behalf of Gwen MacKenzie, Ascension’s Michigan market executive. Ascension is also integrating its six separate
Michigan hospital systems.
The St. Louis-based nonprofit operates across 22 states
and the District of Columbia
and includes 153 hospitals after
The larger footprint and bigger scale—Ascension and Providence would have had annual
revenue of $45.8 billion, according to the most recent financial
statements—would
have displaced HCA Healthcare
Inc. as the largest pure operator of hospitals in the nation.
In December, Catholic
Health Initiatives, of Englewood, Colo., and Dignity
Health, of San Francisco, announced an agreement to
merge their hospitals, now a
total of 138. Chicago-based Advocate Health Care and Milwaukee-based Aurora Health
Care also announced plans in
December to combine their 27
hospitals. And in February,
Bon Secours Health System
Inc., based in Marriottsville,
Md., and Cincinnati-based
Mercy Health unveiled a
merger to form a nonprofit,
43-hospital, seven-state health
system.
Turnill, Richard ........... B2
V
PAY
van Schaick, Ewout....B2
Velis, John ................ B11
Z
Zuckerberg, Mark ....... B1
Continued from the prior page
“You’ve got to have a lot of lowpaid people to roll trucks and
establish phone connections.”
While both firms have thousands of retail stores, many
are so-called dealer stores,
owned and staffed by other
firms. AT&T owns more of its
own stores: just under 40%,
compared with just over 20%
at Verizon, by Mr. Moore’s figures. Retail workers tend to
have lower pay.
Another factor is outsourcing. Low-wage jobs are typically the first to be farmed out
to contractors. Despite similar
geographic footprints, Verizon
has a significantly smaller
workforce: about 155,000 employees to AT&T’s roughly
250,000 last year.
That leaves the mechanics
of the median-pay figure itself.
First, a technical point:
Companies aren’t exactly disclosing a median pay figure,
which is the point at which
half their workers make more
and half less. Rather, they are
disclosing the total pay of a
specific individual identified
as their median worker.
SEC disclosure rules are
firm about how companies calculate the total pay figure. It
has to match the method set
in regulations years ago for
calculating CEO pay.
But firms have much more
leeway in identifying that median worker. They can pick
Last week, Deutsche Bank
AG analyst Sebastian Raedler
downgraded his forecast of fair
value for the index, from 400
to 360 this summer, citing declining economic momentum.
Stocks still look cheaper in
Europe than in the U.S., with
the Stoxx Europe 600 trading
at 13.9 times the earnings it is
expected to generate over the
next 12 months, compared with
16.3 times for the S&P 500. But
the gap has narrowed considerably in the past two months.
On top of large selloffs in U.S.
shares, analysts have steadily
downgraded their expectations
for European earnings this
year, while upgrading the S&P
500’s, according to data provider FactSet.
“We’ve been relatively cautious on the U.S. versus the
rest of the world for some
time,” said Richard Turnill,
global chief investment strategist at BlackRock Inc. “We’ve
changed that view.”
Investors also worry about
negative impacts for exporters
if new U.S. policies trigger a
full-blown trade war. Concerns
for exporters would heighten
if the euro gets a boost when
the central bank bond buying
that has kept the currency
lower, and stocks higher, is
withdrawn in September.
—Georgi Kantchev
contributed to this article.
AT&T owns more of its own stores than does Verizon, and retail workers tend to have lower pay.
various measures of pay to
line up workers from highest
to lowest, before choosing the
person in the middle.
AT&T’s approach is fairly
typical, using cash compensation to line workers up. It says
in its proxy that the initial
employee identified at the median had an unusual pension
benefit. So the firm instead
used a different employee
with lower total pay for its
calculation.
Verizon, by contrast, starts
with what it calls gross earn-
ings, then adds estimates for
company contributions to
401(k) and supplemental-retirement plans, as well as an
estimate of the present value
of any annual gains in the
employee’s future pension
benefits.
Representatives for AT&T
and Verizon generally declined
to discuss what could account
for the disparity. An AT&T
spokeswoman said differences
in how the companies identified their median workers
could have contributed. A Verizon spokesman noted that it
included company-paid healthcare benefits in identifying its
median employee.
—Drew FitzGerald
contributed to this article.
ADVERTISEMENT
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
Skidding
BUSINESS OPPORTUNITIES
Price of Tesla’s 5.3% bond due 2025
98 cents on the dollar
96
94
92
90
88
86
84
January
February March
)6 47..7000 89:'()";
THE WALL STREET JOURNAL.
Moody’s cited a ‘significant shortfall’ in Tesla’s production of its
Model 3 car in lowering its ratings on the company one notch.
note to investors on Tuesday.
Adding to Tesla’s woes,
Moody’s on Tuesday lowered
its ratings on the company by
one notch to B3. It cited
Tesla’s “large negative freecash flow,” looming debt maturities and “significant shortfall” in the production of its
Model 3 car.
Investors should get better
insight into Tesla’s operations
next week, when the company
is expected to release firstquarter production numbers.
Tesla will continue burning
cash until it maintains the
5,000-a-week pace for an entire quarter, UBS analyst Colin
Langan has calculated.
Mr. Musk has long defied
skeptics with his ability to create enthusiasm for an electriccar brand. “Tesla is absurdly
overvalued if based on the
past, but that’s irrelevant,” he
wrote on Twitter last April
when the auto maker overtook
Ford in market value. “A stock
price represents risk-adjusted
future cash flows.”
Many investors remain optimistic about Tesla’s prospects. Despite recent declines,
Tesla’s 5.3% bonds still trade
comfortably above levels that
would suggest investors are
concerned about an imminent
Source: MarketAxess
! " #$
! "#$% &' ! (
" ) ! *+,,, ( -. / / $ +,01 ( 2/
/
34, / 4 0+5*0501 $
PATRICK T. FALLON/BLOOMBERG NEWS
Barr, Roseanne ........... B3
Begor, Mark ................ B3
Bergen, Candice..........B3
Bingle, Mike..............B10
Buffett, Warren........B12
Neuhauser, Lance.......B4
recent acquisitions. A merger
with Providence would have expanded the system significantly
along the West Coast and
Southwest. Renton, Wash.based Providence operates 51
hospitals in seven states, including Alaska, California, Montana,
New Mexico and Oregon, where
Ascension has no hospitals.
Nationwide Network on Hold
DAVID PAUL MORRIS/BLOOMBERG NEWS
A
Acxiom.........................B4
Advanced Micro Devices
...................... B1,B11,B12
Airbnb..........................B1
Alphabet .............. B4,B11
Amazon.com......B10,B11
Anbang Insurance Group
...................................B10
Apple...............B1,B4,B11
Ascension Health ....... B2
AT&T............................B1
AUX International
Holdings..................B11
THE WALL STREET JOURNAL.
* ***
liquidity crisis.
This week’s selloff “doesn’t
make us question the longterm thesis of the company,”
said Tasha Keeney, an analyst
at Ark Investment Management, a New York-based investment firm focused on disruptive technologies that has
been adding Tesla shares to
funds in recent days.
Ark’s projection is that falling lithium ion battery costs
will make electric vehicles
cheaper than gasoline-powered cars by the early 2020s—
enough, Ms. Keeney said, to
cause Tesla’s stock to double
over the next five years.
AUCTION
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THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | B3
BUSINESS NEWS
Shell Targets Former Top Official
Oil giant suspects that
ex-executive may
have taken kickbacks
from Nigerian sale
BY ANNAMARIA ANDRIOTIS
BY SARAH KENT
Equifax Inc. has appointed
former General Electric Co.
executive Mark Begor as chief
executive, the second change
to the position since the
credit-reporting company disclosed a large cyberattack in
September.
Mr. Begor will succeed Paulino do Rego Barros Jr. on
April 16, ending the tenure of
the interim chief who took
over several weeks after the
hack was disclosed last year.
The move comes after a
monthslong search that began
shortly after Mr. Barros took
over from Richard Smith, the
company’s longtime chief who
retired in the wake of the
breach.
Mr. Begor, who will also
join Equifax’s board, will take
control of a company that
faces mounting challenges.
Equifax
recently revised
higher the number of U.S. consumers whose information
was compromised in the
hack—its second such revision—bringing the total to
147.9 million. The company is
under investigation by federal
and state regulators, is a defendant in a number of lawsuits, and is working to regain
the trust of the public and its
clients, including lenders who
are questioning whether to renew contracts with the firm.
On Wednesday, Equifax’s
shares rose 2.3%, to $119.04.
Equifax has also come under renewed congressional
scrutiny in recent weeks after
the disclosure that additional
consumer information beyond
what was previously publicly
disclosed was also compromised in the breach. Then, in
March, a former technology
executive of the firm was indicted on criminal insidertrading charges regarding allegations he sold company stock
after learning about the
breach last year before it was
made public. Equifax wasn’t
accused of wrongdoing in the
matter. The executive, Jun
Ying, has pleaded not guilty to
the charges.
LONDON—Royal
Dutch
Shell PLC has referred a former senior executive to Dutch
legal authorities, and a person
familiar with the matter said
the move was based on suspicion he may have received
kickbacks from the 2011 sale of
the company’s interest in an
oil-producing area in Nigeria.
The British-Dutch oil giant
said Wednesday it has filed a
criminal complaint in the
Netherlands against Peter
Robinson, who served as the
company’s commercial vice
president for sub-Saharan Africa from 2008 to 2011. Mr.
Robinson left the company in
2014. Based on an internal
Shell probe, the company said
Wednesday “we suspect a
crime may have been committed” during the sale of Shell’s
interest in the oil-producing
area—or bloc—known as OML
42 in 2011.
Mr. Robinson is already facing criminal prosecution in Italy, one of several former Shell
employees set to stand trial
beginning in May in one of the
oil industry’s biggest-ever corruption cases. That case relates to a separate Nigerian oil
bloc called OPL 245, which
Shell and Italian rival Eni SpA
acquired in 2011. Prosecutors
in Italy allege the two companies and their executives engaged in a wide-ranging bribery scheme to secure the bloc.
Dutch authorities have said
they are conducting a criminal
probe into the OPL 245 bloc
In his first interview as incoming
chief
executive,
Mr. Begor, 59 years old, touted
his experience turning around
two embattled GE divisions as
preparing him for the new
role. The executive is a managing director in the industrial
and business-services group at
private-equity firm Warburg
Pincus LLC. He is also a board
member at Fair Isaac Corp.,
the creator of the credit scores
used in most U.S. consumer
lending decisions.
Before leaving in January
2016, Mr. Begor had spent
about 35 years at GE, where
he was chief executive of several divisions. These included
GE Capital’s retail-finance
unit, which is now Synchrony
Financial, the largest U.S.
store credit-card issuer by
outstanding balances.
At Equifax, Mr. Begor said
his priorities will include regaining customers’ and the
public’s trust and improving
the company’s data security.
Another top goal: maintain
Equifax’s role in collecting
consumer data, an activity
that was scrutinized by lawmakers for what was perceived as the company’s overreach
into
consumers’
personal information.
Mr. Begor said he isn’t a cybersecurity expert, but that
many of the positions he has
held have dealt with technology and cybersecurity. As a
board member at Fair Isaac,
he said he has been closely involved with investments the
company has made in cybersecurity and information technology. He added that his history helping to expand GE
Capital’s credit-card division
included managing data on
more than 60 million accounts. “I don’t have cybersecurity experience directly, but
I’ve been around it” for more
than a decade, he said.
The company filed a criminal complaint in the Netherlands against its former commercial vice president for sub-Saharan Africa.
transaction.
Shell and Eni have denied
wrongdoing in the OPL 245
deal.
Mr. Robinson couldn’t be
reached for comment. Chiara
Padovani, a lawyer who is representing him in the Italian
case, didn’t respond to several
requests for comment.
Mr. Robinson held a key
commercial role in Shell’s subSaharan African operations
during the negotiations for
both the OML 42 and OPL 245
deals. A Shell spokesman said
the company believes the two
matters are unrelated. In
terms of the Italian criminal
prosecution, “we continue to
believe, from our review of the
prosecutor of Milan’s file and
all of the information and
facts currently available to us,
there is no case to convict
Shell or its former employees,”
the spokesman said.
Evidence turned up in the
course of international authorities’ investigations into
the OPL 245 transaction made
Shell suspicious of Mr. Robinson’s other activities, according to the person familiar
leged existence of Mr. Robinson’s Swiss accounts, the person said.
While its internal investigation is still proceeding, it decided to officially take the
matter to Dutch authorities
last week, the person added.
The Dutch Public Prosecutor said officers were aware of
the facts and circumstances
mentioned in Shell’s complaint
as part of its investigation of
the company’s acquisition of
OPL 245.
—Eric Sylvers in Milan
contributed to this article.
with the matter. The company
began an internal investigation late last year into
whether Mr. Robinson may
have used two Swiss bank accounts and a Seychelles-based
firm to funnel kickbacks from
the sale of OML 42, the person said.
Shell informed Dutch authorities of its suspicions in
January. The company also informed the Securities and Exchange Commission and U.S.
Department of Justice when
investigations into the OPL
245 deal alerted it to the al-
BY JOE FLINT
The 1990s hit sitcom “Roseanne” was a hit once again for
ABC on Tuesday night.
The season premiere of the
rebooted working-class comedy, starring the original cast
including Roseanne Barr and
John Goodman, averaged 18.2
million viewers over two
back-to-back episodes, according to data from Nielsen. It
was the second most-watched
entertainment program of the
television season, trailing only
an episode of NBC’s drama
“This Is Us” that aired after
the network’s coverage of the
Super Bowl.
The episodes of “Roseanne,” which started at 8
p.m., provided the biggest audience for ABC’s prime-time
entertainment lineup since
2006. The premiere also garnered more viewers than the
original series finale in 1997,
which averaged about 16 million viewers.
The success shows that new
episodes of old sitcoms can
still attract substantial audiences and speak to modern issues, and is another indication
that the trend of bringing back
vintage shows isn’t going
away anytime soon.
Comcast Corp.’s NBC has
done well this season with its
reboot of the 1990s comedy
“Will & Grace,” and CBS Corp.
is developing a new version of
“Murphy Brown,” in which
Candice Bergen will reprise
her role as the pioneering TV
newswoman.
In the case of “Roseanne,”
there was particular interest
in how viewers would respond
to the show given that both
Ms. Barr and her character,
Roseanne Conner, are vocal
fans of President Donald
Trump. In addition, Roseanne’s sister, Jackie, played by
ADAM ROSE/ABC/ASSOCIATED PRESS
TV Viewers Make ‘Roseanne’ Great Hit Again
Roseanne Barr and John Goodman revive their roles in the reboot.
Laurie Metcalf, is a Hillary
Clinton fan, and one of the
other characters on the new
episodes is a gender-nonconforming grandchild.
While “Roseanne” never
shied away from politics or social issues during its first run
two decades ago, television
audiences have become much
more fragmented since then,
and broadcast networks are
often wary of potentially
alienating viewers.
Last month, ABC shelved an
episode of its comedy “Blackish” that included a debate
about athletes kneeling during
the national anthem after a
disagreement with the show’s
creative team over the show’s
tone.
ABC ordered nine episodes
of “Roseanne.” The network
hasn’t said if the show will get
renewed. But the initial numbers are a good indicator, even
if initial curiosity wears off,
particularly given the sitcom’s
strong showing among viewers under the age of 50.
For Walt Disney Co.’s ABC,
it is the third success of the
new season. The network has
the most popular new broadcast drama in “The Good Doctor,” and the revival of “American Idol”—originally on Fox—
has also averaged solid
ratings.
independence
FRANCISCO LEONG/AGENCE FRANCE-PRESSE/GETTY IMAGES
Mark Begor will take
the helm as the
company faces a
series of probes.
GEORGE OSODI/BLOOMBERG NEWS
New CEO
At Equifax
Aims to
Build Trust
integrity
best
interests
CACI International’s withdrawal clears the way for General Dynamics to proceed with its own deal.
Contractor Drops CSRA Bid
BY AUSTEN HUFFORD
CACI International Inc.
withdrew its bid for CSRA
Inc., paving the way for a General Dynamics Corp. deal to
continue.
Last week, General Dynamics raised its offer for CSRA
after CACI submitted an unsolicited bid for the rival federal
information technology provider.
CACI was trying to prevent
a tie-up between General Dynamics and CSRA as companies supplying the Pentagon
and other government agencies with IT and analytic services search for greater scale.
While the deal is now back
on track, General Dynamics
was forced to up its offer for
CSRA.
“We will continue our aggressive pursuit of strategic
opportunities, judiciously and
without engaging in auctions
at uneconomic levels,” CACI
Chief Executive Kenneth Asbury said.
General Dynamics’ latest
bid was for $41.25 a share in
cash, valuing its target at $6.9
billion.
CACI wasn’t able to
overcome the bid from the
much-larger General Dynamics, which has a market capitalization of about $65.9 billion, compared with CACI’s
$3.67 billion.
Investors also expressed
concerns about the debt CACI
would have had to take on to
finance its deal.
General Dynamics has already secured antitrust approval for its proposed deal,
which would create one of the
largest government IT providers, with annual sales of almost $10 billion.
Some analysts have said
that more deal making in the
already consolidated sector
would continue as government
departments opt to award
larger, enterprisewide contracts.
CSRA shares fell 0.1% while
CACI was inactive and General
Dynamics shares shed 1.7%.
For a future that amounts to more,
change the equation.
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B4 | Thursday, March 29, 2018
THE WALL STREET JOURNAL.
* ***
TECHNOLOGY
WSJ.com/Tech
Uber Executive
Who Worked on
Driving Tech Exits
The company has been pressed to explain how personal data was improperly obtained by a data analytics firm in the U.K.
Facebook Restricts Data
To Brokers Amid Uproar
Facebook Inc. is curbing
the information that it exchanges with companies that
collect and sell consumer data
for advertisers, as the socialmedia giant tries to calm an
uproar over its handling of
By Deepa
Seetharaman,
Georgia Wells
and Suzanne Vranica
personal information.
The measures, part of
which Facebook announced
late Wednesday, affect a group
of so-called data brokers such
as Acxiom Corp. and Oracle
Corp.’s Oracle Data Cloud, formerly known as DataLogix,
that gather shopping and
other information on consumers that Facebook for years
has incorporated into the adtargeting system that is at the
core of its business.
Facebook said it is ending an
ad-targeting option called Partner Categories that lets such
data brokers target specific
groups of Facebook users—
people who buy a certain product, for example—on behalf of
their ad clients. Facebook believes shutting that system
down “will help improve people’s privacy on Facebook,”
Graham Mudd, product marketing director at Facebook,
said in a post Wednesday.
In addition, Facebook is
halting its practice of providing
anonymized data from its platform to such information brokers that they use to measure
the effectiveness of their ad
campaigns, said people familiar
with the matter. But the company is trying to find more secure ways to share data with
these brokers to measure ad
performance, one of the people
said, at a time when advertisers are clamoring for data that
proves that Facebook ads work.
Facebook is making the
changes as part of a broader internal review of how it handles
user information. The company
is reviewing its relationship
APPLE
Continued from page B1
global demand for smartphones stagnates and people
hold on to their devices longer.
While legal experts say the
plaintiffs face an uphill battle,
a multiyear court fight over
the phone-throttling issue
could force the secretive company to disclose sensitive information about its software
development process, according to analysts.
Plus, a decision against Apple could require it and other
tech companies to be more
transparent about how their
software or hardware features
affect power or performance,
said Mr. Rothken, who isn’t involved in this legal action.
An Apple spokeswoman declined to comment. The company has previously said it
would never do anything to intentionally shorten or degrade
the life of any of its devices,
adding that Apple’s goal is to
make iPhones that last as long
as possible.
Social-Media Site
Helps Its Users
Cover Their Tracks
Facebook Inc. says it will
make it simpler for users to
examine and change some of
the data about them that the
social network tracks.
The tweaks, announced
Wednesday and set to roll out
in the coming weeks, include a
new, central hub in the Facebook app settings that contains existing tools for users to
review and, if desired, delete
traces of their Facebook activity such as past posts and
search terms. Some other data,
such as which ads users
clicked on, still won’t be erasable. Facebook says any information users delete is wiped
from its servers.
Facebook will also redesign
its settings menu for mobile devices, now spread out across almost 20 different screens, and
consolidate its privacy and security options in a single place.
The moves are part of
broader changes Facebook is
planning to bolster privacy, said
Rob Sherman, Facebook’s deputy privacy officer. They come
amid intensifying scrutiny from
users, regulators and lawmak-
ers over Facebook’s admission
on March 16 that user data
was improperly obtained by
Cambridge Analytica, a dataanalytics firm that worked for
the 2016 Trump campaign.
The backlash has shaken
Facebook and hammered its
stock, cleaving more than $95
billion off its market value in
just over a week.
“It’s been a very intense
week,” Mr. Sherman said in an
interview. “One thing that’s
been really clear is that we’ve
lost people’s trust and need to
do a lot of work right away to
work on regaining it.”
The Cambridge Analytica
revelation showed limits to
Facebook’s enforcement of
rules governing outsiders’ handling of user data and its ability to see how third parties
may have used Facebook data.
Facebook says the firm obtained the data, involving potentially tens of millions of users, in violation of its rules
from an app developer that
was allowed to have the information but not to sell it. It is
investigating whether Cambridge Analytica kept the data
after Facebook demanded it be
deleted in 2015. Cambridge Analytica has said it followed
Facebook’s policies.
—Deepa Seetharaman
with data brokers in part because it is concerned about how
those firms are obtaining their
data and how accurate it is, one
of the people said.
Acxiom on its website says
that it takes a “proactive approach in protecting consumer
privacy,” and looks for ways
“to protect and assure appropriate use of information related to consumers and to promote policies within the
industry that do the same.”
Oracle declined to comment.
Facebook has battled criticism over its user-data practices since it said on March 16
that personal information was
improperly obtained by Cambridge Analytica, a data-analytics firm that worked for the
2016 Trump campaign.
Chief Executive Mark Zuckerberg apologized last week
for a “major breach of trust”
in that episode and outlined
steps the company has taken
and plans to take to better
protect user data.
Curbing its relationships
with data brokers could affect
Facebook’s value proposition
to advertisers, removing a
layer of information that has
helped some marketers target
ads with greater precision. But
Suitable for Many
iPhone ownership has surged
since Apple settled a smartphone
class-action suit in 2012.
U.S. iPhone users
80 million
78.8M
60
40
20
0
2014
’15
’16
’17
Source: Kantar Worldpanel
Apple CEO: Privacy
Lacks Protection
the impact is likely to be limited, industry executives said.
Facebook’s partnership with
data providers has particularly
helped brands that lacked detailed customer data, such as
consumer
packaged-goods
makers, said Lance Neuhauser,
CEO of 4C Insights, a digitalad service provider. However,
he said, advances in Facebook’s own targeting capabilities have “made the need for
some of this third party targeting a little less important.”
Facebook and other internet companies also are under
pressure from European Union
authorities to make sure all of
its targeting data is collected
with user permission, as part
of the EU’s General Data Protection Regulation scheduled
to take effect in May.
In a memo to advertising
agencies, Carolyn Everson,
Facebook’s vice president of
global marketing solutions,
said the data-broker relationships would be phased out in
six months.
While Facebook has a huge
amount of data on users—sites
they’ve liked, their interests
and detailed demographic information, even their chat history—brokers such as Acxiom,
Oracle Data Cloud, and Epsilon
Data Management LLC have
reams of information on people’s purchases, household income and other characteristics.
That information is matched
to Facebook profiles, allowing
brands to target ads at people
who have bought certain products—and extend those campaigns to Facebook users with
similar characteristics.
The extent of the possible
impact on Facebook of removing third-party data isn’t clear.
The company’s trove of data is
hugely valuable on its own. And
many marketers have their own
consumer data that they upload
to Facebook and use in ad campaigns--a practice not affected
by the new changes.
—Douglas MacMillan
contributed to this article
Apple Inc. Chief Executive
Tim Cook on Wednesday called
for privacy regulation, saying
people should have more visibility into not only what personal information they share
online but also how companies
mine that information to better understand consumers.
“We’ve never believed that
these detailed profiles of people that have incredibly deep
personal information that is
patched together from several
sources should exist,” he said
during a taping of an MSNBC
show slated to air April 6.
Mr. Cook said he is generally averse to regulation, “however, I think we’re beyond that.
It’s time for a set of people to
think about what can be done.”
Apple has sought to protect
user privacy on its devices, encrypting text messages and
storing sensitive information
such as facial profiles on devices
rather than remotely.
Its business model, which relies on sales of iPhones, iPads
and other devices, stands in
contrast to Alphabet Inc. and
Facebook Inc., which rely on
selling advertising.
—Tripp Mickle
ment and Securities and Exchange Commission over
potential securities violations
related to its disclosure of the
software updates that slowed
older iPhones. It has faced
questions from consumer and
watchdog groups in France, Italy and China.
Apple’s predicament started
after the company, prompted
by questions from users and
analysts, said it introduced the
software update to prevent
older iPhones with aged batteries from unexpectedly shutting down. In late December,
Apple apologized and said it
would reduce the out-of-warranty cost of battery replacement to $29 from $79 for most
customers.
THE WALL STREET JOURNAL.
The lawsuits could also prolong the negative publicity
surrounding Apple’s slowing of
the phones. “It’s the brand
damage that is even more
risky and expensive for Apple,”
said Holger Mueller, a technology analyst with Constellation
Research.
Apple also is being investigated by the Justice Depart-
Uber Technologies Inc.’s
head of freight trucking, Lior
Ron, who helped work on autonomous-vehicle technology,
is leaving the company, a
prominent departure in the
wake of a controversial crash
involving one of its self-driving vehicles.
Mr. Ron doesn’t appear to
have a job lined up, according
to an internal email reviewed
by The Wall Street Journal.
“You have been through a
lot of change, and that is not
easy,” the email to staff read.
“I assure you that we remain
bullish on Freight,” wrote Eric
Meyhofer, head of the Advanced Technologies Group,
which oversees Freight and
Uber’s self-driving vehicle programs. He thanked Mr. Ron for
his “contributions to our selfdriving efforts and the Freight
team.”
Mr. Ron’s departure wasn’t
related to last week’s fatal accident involving one of Uber’s
self-driving sport-utility vehicles in Tempe, Ariz., said a
person familiar with the matter. Though he helped with
some self-driving truck development, he wasn’t involved
with the autonomous passenger vehicles, this person said.
In a statement, Uber said:
“We remain fully invested in
and excited about the future of
Uber Freight. Since launching
in Texas, we have introduced
Freight to all states in the continental U.S. We believe it will
continue to grow as we use
our network and technology to
transform the trucking industry.”
Mr. Ron co-founded selfdriving truck startup Otto,
which was acquired by Uber in
2016. He was a figure in the
recent trial concerning Uber’s
acquisition of the Otto, which
Alphabet Inc.’s Waymo alleged
was used as a means to obtain
self-driving vehicle trade secrets. Uber denied the claims
and settled the case with
Waymo in February in exchange for equity worth about
$245 million.
Uber’s Freight division
matches truck drivers looking
for work with commercial
shippers who have loads to
haul. Uber operates as the broker, setting prices for various
loads and routes and paying
drivers after a load has
reached its destination.
Earlier this month, Uber
said its self-driving trucks
were making limited runs in
Arizona for the Freight division. It showed how the
trucks, which have a safety
driver in the front seat,
worked by transferring cargo
to and from traditional big-rig
trucks. Uber and others believe
driverless technology could
one day save costs and lives by
operating on long-haul runs
that typically require an alert
human driver at the wheel.
Mr. Ron, who previously
worked at Google and Motorola, co-founded Otto with Anthony Levandowski, who was
fired by Uber last year ahead
of the Waymo trial. Otto was
focused on designing self-driving big-rig trucks.
During the trial, Mr. Ron
testified that Otto had fielded
buyout offers from Lyft Inc.
The trial evidence showed that
he and Mr. Levandowski had
also pitched the idea of a selfdriving truck company to Alphabet CEO Larry Page.
KRISZTIAN BOCSI/BLOOMBERG NEWS
JOSH EDELSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY GREG BENSINGER
The German joint venture aims to bolster on-demand services.
BMW, Daimler Join
To Fight Silicon Valley
BY WILLIAM BOSTON
BERLIN—Daimler AG and
BMW AG, rivals in the luxurycar business, are joining forces
to bolster their on-demand
transportation entries against
competition from tech giants
like Uber Technologies Inc.
The German auto makers
said Wednesday they will form
a joint-venture company that
combines Daimler’s Car2Go
and BMW’s DriveNow carsharing providers, as well as
ride-hailing services such as
Daimler’s Moovel and MyTaxi
and others.
Earlier this year, Daimler
and BMW separately bought
out minority shareholders in
their car-sharing businesses,
paving the way to merge them
and fueling speculation that
the combination might list on
the stock exchange.
Although their latest move
creates a single premium carsharing brand, the success of
the Daimler-BMW venture is
far from certain. While some
of the mobility services they
offer are well established in
Germany and in some European cities, they have little
presence elsewhere.
Uber, the global ride-hailing
leader, has a hefty valuation as
investors speculate on the future growth of such services
as more people opt to share
rides and vehicles instead of
owning their own cars.
—Chester Dawson
in New York
contributed to this article.
BUSINESS WATCH
SOFTBANK GROUP
Solar Project Planned
With Saudi Fund
Saudi Arabia’s sovereignwealth fund and Japan’s SoftBank Group Corp. plan to undertake the world’s biggest solarpower-generation project.
The development would start
this year with a $1 billion investment from the joint Saudi-SoftBank Vision Fund, Masayoshi
Son, chief executive of SoftBank,
said on Tuesday. He said it is expected to grow into a $200 billion behemoth that provides
about 200 gigawatts of power
by 2030, more than Saudi Arabia would need to light up the
entire country by then.
“It’s by far the biggest solar
project ever,” Mr. Son said at a
news conference in New York,
after signing a nonbinding agreement with Saudi Crown Prince
Mohammed bin Salman.
—Margherita Stancati
and Michael Amon
BOEING
Malware Intrusion
Is Reported
Boeing Co. said Wednesday
its cybersecurity operations center “detected a limited intrusion
of malware that affected a small
number of systems.”
The airplane maker, in a
statement posted on Twitter,
said: “Remediations were applied
and this is not a production or
delivery issue.” A representative
declined to elaborate.
—Andrew Tangel
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | B5
Special Advertising Section
Empowering
Tomorrow’s Workplace
Make your business future-ready with
8th Gen Intel Core vPro processors
I
t’s easy to envision the workplace of the future.
Perhaps there’s a gleaming, open-plan office,
where human workers and artificial intelligence
join together in the spirit of collaboration. Or perhaps there’s no office at all, but rather a network
of remote employees clocking in from around
the globe.
In either scenario, the key themes are
clear. On the one hand, there’s a surging
demand for flexibility. According to a
survey by the London Business School’s
Global Leadership Summit, 34 percent
of business leaders predict that more
than half of their workforce will be remote by 2020. And on the other hand,
there’s a gathering storm of data, pushing companies to the brink of their processing power as they attempt to stay
ahead of the curve.
That’s where 8th Gen Intel® Core™
vPro™ processors come in. The newest
generation of Intel processors offers
the power and versatility the evolving
technology ecosystem demands, giving
businesses the tools they need to work
smarter, faster and more efficiently.
“Our 8th Gen line of Core vPro processors is designed to help businesses
stay ahead of what’s next, particularly
in spaces like advanced analytics and
business intelligence workloads,” says
Kaitlin Murphy, director of marketing
for the business client platform division
at Intel. “It goes back to performance,
it goes back to time and money, and it
goes back to extracting those insights
that let your company outperform
its competition.”
FUTURE-READY PERFORMANCE
With mobility top of mind, the
8th Gen line offers amazing processing power in a versatile package tailor-made for an always-on workforce.
This year alone will see the release of
more than 100 platforms running on
8th Gen Core vPro processors, with
designs running the gamut from notebooks and tablets to innovative two-inone form factors. Even with a notebook
that’s as thin as a magazine, end users
can expect the same performance, features and capabilities they’d get from a
full-fledged workstation powered by the
Intel vPro platform.
“Businesses are collecting so much
information they don’t even know what
to do with it, and the future of work is
only going to have more data than today,” Murphy says. “Processing power is
central in determining how businesses
make sense of that chaos and turn the
flood of data into meaningful insights.
This isn’t just true for data scientists —
it runs across the line of businesses that
need to make smarter decisions, do it
more quickly and influence others using their data.”
But for tomorrow’s workforce (to say
nothing of today’s), power means little
without mobility. It’s a need reflected in the long battery life of Intel Core
vPro processor-based platforms, giving
workers the flexibility to do their best
work anywhere and anytime. But, as
Murphy explains, the technology’s true
power doesn’t lie in its base specs alone.
Rather, it’s what it is able to do with
them — like maintaining battery life
and lightning-fast performance even
with features like high-speed multitasking, which makes swapping between
apps and programs a breeze.
“What good is an amazing car, for
example, if you let it sit there and never
use it?” Murphy says. “You want to be
able to take advantage of what’s inside.”
MANAGING TOMORROW
While the workforce looks toward
employers to deliver on their promise
of enhanced mobility, trends favoring
remote work can take a toll on IT man-
agers — who not only have to manage
more devices, but also cover product
health and data needs across an increasingly disparate network. According to
Intel, today’s workers use an average of
3.5 devices on the job, with around 80
percent of the cost of a product’s ownership coming from aftermarket expenses
like tech support and repairs.
But the 8th Gen line of Core vPro
processors allows IT managers to actively manage devices even when an
operating system is down or the device
itself is powered off. By diagnosing a
problem remotely, businesses could
more than halve the cost of repairing a
device — from $187 down to $60 — with
Intel Active Management Technology
supported by the Intel vPro platform.
“We can deliver mobility, we can
deliver performance and we can deliver manageability all in a single package,” Murphy says. “And by being able
to collaborate with partners like CDW
and give IT the tools to manage an increasingly complex network, we can
help them focus on other areas that can
givetheircompanyastrategic advantage.”
The Wall Street Journal news organization was not involved in the creation of this content.
Intel, Core and vPro are trademarks of Intel Corporation or its subsidiaries in the U.S. and/or other countries.
Be great, from wherever
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©2018 CDW®, CDW•G® and PEOPLE WHO GET IT® are registered trademarks of CDW LLC.
.
THE WALL STREET JOURNAL.
B6 | Thursday, March 29, 2018
MANAGEMENT
New Tools Tell Bosses How You’re Feeling
Companies use artificial intelligence to get instant insights from employee surveys that once took months to process
Human-resource departments are becoming a bit
less human as companies
turn to artificial intelligence
for help with hiring and firing—and to learn how employees really feel about
their bosses.
Every year at SPS Cos.,
most of the steel processor’s
600 employees, from warehouse staffers to top executives, fill out a 30-minute
confidential survey that asks,
among other things, whether
they feel micromanaged and
whether they feel their managers support their professional growth. One question
challenges survey-takers to
gauge how respected and
valued they feel within the
organization.
This year, for the first
time, the Manhattan, Kan.based company tapped an
artificial-intelligence tool
called Xander to analyze responses. Xander can determine whether an employee
feels optimistic, confused or
angry, and provide insights
to help manage teams, the
tool’s developers at Ultimate
Software Group Inc. said.
From a block of text, the
software analyzes answers to
open-ended questions based
on language and other data,
assigning attitudes or opinions to employees.
One top executive at SPS
learned from recent survey
analysis that he needed to
work on his temper. “One of
my lowest-scoring items was
maintaining my composure
under stress,” he said of the
feedback from his direct reports. On the bright side,
Xander reported that the
manager’s staff felt he was
fair and honest.
Research shows that emotions are key to understanding what motivates employees. How people feel often
determines if they go above
and beyond in the workplace
or underperform, said Jason
THOMAS FUCHS
BY IMANI MOISE
Hite, chief people strategist
at HR consultancy Daoine
Centric LLC. It can also explain why people leave.
Companies have used
technology to track employee actions and help
boost productivity for years,
but now some are turning to
software to sniff out differences between what employees say and how they feel.
At First Horizon National
Corp., a regional bank based
in Memphis, it once took a
team of six human-resource
personnel three months to
pore over 3,500 surveys.
Managers would take an additional five months to submit action plans based on
the data.
“By the time they got
started we were getting
ready to do another survey,”
said Mario Brown, manager
of leadership assessment and
development at First Horizon.
Using Xander, First Horizon could slice and dice the
feedback as soon as the survey closed. One insight the
company gained from the
survey was that it needed to
work on its training program.
Steel company SPS
streamlined its health-care
plan offerings after survey
results showed the options
confused and overwhelmed
employees. HR staffers have
used some of the time saved
processing survey results to
start new mental and physical health initiatives for employees, including a wellness
blog.
More than 40% of employers world-wide have implemented artificial intelligence
processes of some kind, according to a recent study
from Deloitte.
But as AI tools infiltrate
HR departments, regulators
are struggling to keep up.
A number of software
companies including HireVue Inc. and Syndio offer artificial-intelligence tools to
help make decisions about
hiring, firing and compensation. That worries employees
who are wary of being psychoanalyzed by software,
and some employment lawyers fret that AI programs
might contain biases that
could lead to workplace discrimination.
“I’m fully aware of a
handful of people who didn’t
want to take the survey because they had a fear of being tracked,” said Corey
Kephart, vice president of
human resources at SPS.
Since most emotions are
communicated nonverbally,
programs that solely rely on
text can miss the bigger picture, said Julie Albright, a
digital sociologist at University of Southern California.
Artificial intelligence might
one day be trained to recog-
Software can sniff out
differences between
what people say and
what they are thinking.
nize signs of depression and
other emotions in facial expressions and voice tones,
she said, but the technology
isn’t there yet.
Any algorithmic bias is
likely to have an outsize impact on minorities and other
protected classes of employ-
ees, said Garry Mathiason,
an attorney at Littler Mendelson PC who specializes in
artificial intelligence and
employment law. A hiring algorithm might notice a
higher rate of absences for
people with disabilities and
recommend against employing them, for example.
The Equal Employment
Opportunity Commission,
the U.S. regulator that enforces laws preventing workplace discrimination, hasn’t
issued official rules determining how artificial intelligence can be used in humanresource decisions, but a
panel convened by the
agency in 2016 concluded
that the technology can potentially create new barriers
for opportunities.
Mr. Mathiason said he expects official guidelines from
the EEOC in the near future.
Meanwhile, companies can
avoid legal gray areas by
keeping human review as
part of any AI-enabled decision-making process and by
disclosing how the AI is being used, he said.
Though confidential, the
surveys aren’t anonymous.
Xander can take into account
an employee’s demographic
data, previous surveys, and
other background information when analyzing responses. Ultimate Software
said the tool has safeguards
in place to protect confidentiality. For example, a manager may need a certain
number of direct reports to
respond to a survey before
gaining access to verbatim
responses—which makes it
harder to identify who said
what.
The company said Xander
can’t always get it right—but
neither do people.
It still requires humans to
pick up body language cues,
and “even humans only catch
sarcasm half the time,” said
Suhail Halai, Ultimate Software’s head of customer experience.
BY ALISTAIR MACDONALD
AND JAMES R. HAGERTY
Peter Munk escaped Nazioccupied Hungary to become a
freewheeling international entrepreneur and founder of
Barrick Gold Corp.
Aside from building Barrick
through takeovers into the
world’s largest
OBITUARY gold miner, he
PETER
helped create a
MUNK
maker of stylish
1927-2018
stereo equipment,
made
abortive efforts
to enter the auto-manufacturing business, developed hotels
in the South Pacific and built a
marina for giant yachts in
Montenegro.
Mr. Munk died Wednesday
in Toronto, Barrick said. He
was 90.
He was born in Budapest on
Nov. 8, 1927, into an affluent
Jewish family whose fortune
derived from real estate and
distribution of Viennese chocolates.
In 1944, when the Nazis invaded Hungary, he escaped to
Switzerland on a train that
would prove one of the last
routes out of the country for
Jews. His mother, who survived the Auschwitz concentration camp, wrote him after
the camp was liberated
and told him he shouldn’t stay
in Europe but go instead to
North America. “Get a decent,
nice job and earn a lot of
money,” she wrote.
Mr. Munk arrived in Canada
with a single suitcase and supported himself as a student in
Toronto partly by selling
Christmas trees.
He earned a degree in electrical engineering at the University of Toronto and met fellow student David Gilmour. In
1958, they founded Clairtone
Sound Corp., which put highend turntables and stereo
speakers into sleek, Scandinavian-style cabinets.
The company established
the founders as dashing young
entrepreneurs but was chronically short of cash. Seeking
greater scale, they diversified
into making television sets and
persuaded the province of Nova
Scotia to finance a new factory
in the town of Stellarton.
MARK BLINCH/REUTERS
Freewheeling Barrick Gold Founder Dies at 90 in Toronto
Peter Munk, seen here in 2014, skied into his 80s in Switzerland.
The business floundered,
partly because of the factory’s
remote location and lack of a
workforce skilled in manufacturing. The provincial government took over the business in
1968 and it closed down several years later.
Mr. Munk’s guiding principle was that the “only thing in
life that is constant is change,”
and that helped him adapt and
move into new businesses, Mr.
Gilmour said in a 2012 interview. Grateful to have been
welcomed into Canada as a
young man, he also was determined to succeed in his adopted country.
Mr. Munk tried unsuccessfully to enter the automotive
industry, first with a plan to
assemble Japanese cars in
Canada and then with an abor-
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
March 28, 2018
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always
represent actual transactions.
Week
Latest ago
Inflation
Feb. index
level
Chg From (%)
Jan. '18 Feb. '17
U.S. consumer price index
248.991
255.783
All items
Core
0.45
0.45
2.2
1.8
International rates
Latest
Week
ago
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
4.75 4.50 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.83
0.76
Federal funds
Effective rate
High
Low
Bid
Offer
1.78
1.48
1.4800
1.6500
1.4000
1.4200
1.4700
0.8400
1.0625
0.7000
0.8100
0.8200
2.00
2.25
Secondary market
1.88688
2.30800
2.44403
2.65950
1.86125
2.27108
2.43422
2.67638
1.88688
2.30800
2.45380
2.67700
0.98222
1.14678
1.39072
1.69511
One month
Three month
Six month
One year
-0.407
-0.374
-0.328
-0.251
-0.409
-0.389
-0.332
-0.253
-0.391
-0.356
-0.249
-0.119
-0.420
-0.389
-0.339
-0.263
Euro interbank offered rate (Euribor)
30-year mortgage yields
One month
Three month
30 days
60 days
4.017 4.109 4.109 3.253
4.048 4.139 4.139 3.281
Other short-term rates
Week
Latest ago
3.25
3.50
90 days
2.20
2.18
2.25
-0.371 -0.370 -0.366 -0.375
-0.329 -0.329 -0.325 -0.332
-0.271 -0.272 -0.241 -0.279
-0.191 -0.191 -0.109 -0.194
Six month
One year
Latest
Value
Traded
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.809
1.844
46.000 1.836 0.791
89.640 1.852 0.794
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Mar
Treasury Apr
Treasury May
98.345 0.010 2126 1.655
98.230 0.010 1748 1.770
98.225 unch. 825 1.775
Notes on data:
2.75
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
and is effective March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective March 22, 2018. DTCC GCF Repo Index is Depository
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US.
0.95
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
52-Week
high
low
Call money
3.50
1.50
One month
Three month
Six month
One year
Euro Libor
Commercial paper (AA financial)
2.25
—52-WEEK—
High Low
Fannie Mae
U.S. government rates
Discount
1.7000
1.9000
1.6000
1.6700
1.7000
1.705 1.720 1.720 0.695
1.760 1.780 1.780 0.780
1.895 1.950 1.950 0.905
4 weeks
13 weeks
26 weeks
Week
Latest ago
Libor
1.7000
1.9000
1.6000
1.6700
1.7000
Treasury bill auction
Overnight repurchase
U.S.
—52-WEEK—
High Low
tive effort to buy the dying
maker of Studebaker cars.
He and Mr. Gilmour rebounded to create South Pacific
Properties Ltd., which opened
hotels in Fiji, Tahiti, Australia,
New Zealand and elsewhere.
After Egyptian President Anwar
Sadat halted South Pacific
Properties’ attempt to build a
resort near the pyramids outside Cairo, Mr. Munk sold the
company in 1981.
In 1983, Messrs. Munk
and Gilmour teamed up again,
this time betting that gold
prices—long in the doldrums—
were ready to rebound. They
formed Barrick, listed its
shares on the Toronto Stock
Exchange and bought a half interest in an Ontario mine. Riding a boom in the price of gold,
the company quickly gobbled
up mines. By 2006, Barrick
owned 27 mines world-wide.
In 2011, Barrick paid $7.65
billion for copper miner Equinox Minerals Ltd. just as copper prices started to slide. A
sharp decline in gold prices hit
profits, and the company was
plagued by cost overruns as it
tried to extract gold and silver
from beneath glacial ice at the
Pascua-Lama project in the
Andes on the border of Argentina and Chile. Those setbacks
hammered Barrick’s share
price and turned some investors against Mr. Munk.
He clung to his role as chairman as the company sold assets
and slimmed down. But gold
prices continued to fall and in
2014 he stepped down from
Barrick’s board at age 86.
In mining, the fedora-wearing Mr. Munk stood out as a
flamboyant and energetic entrepreneur. He skied into his
80s and had a home in the
Swiss ski village of Klosters.
Mr. Munk is survived by his
wife of 45 years, Melanie Bosanquet. His first marriage, to
Linda Gutterson, a professor
of English literature, ended in
divorce. She died in 2013. He
also is survived by five children and 14 grandchildren.
A bronze bust of Mr. Munk
gazes imperiously on the reception hall in Barrick’s Toronto headquarters. On its
base are the words: “Peter
Munk, founder, builder, visionary.”
Shale Deal Could Signal
Consolidation in Permian
BY CHRISTOPHER M. MATTHEWS
AND BRADLEY OLSON
Concho Resources Inc.
has agreed to buy RSP
Permian Inc. in a deal that
could herald the start of a
consolidation push in America’s most active shale-drilling region.
The companies are valuing
the all-stock deal at roughly
$9.5 billion, including net
debt from RSP, they said
Wednesday. That would make
it the largest-ever deal in the
Permian Basin, the area of
Texas and New Mexico where
Exxon Mobil Corp., Chevron
Corp. and other big companies are now ramping up
production
along
with
smaller independent shale
drillers.
The deal could mean it is
“game on in the Permian,”
investment bank Jefferies
Group LLC said in a note to
investors, as other producers
in the region could move to
snatch up smaller competitors.
The acquisition of RSP
will make Concho the region’s biggest current active
driller, the companies said.
“We’re now getting more
into the development phase”
of the U.S. shale boom, said
Tim Leach, chief executive of
Concho Resources. “The efficiency that you can gain by a
bigger balance sheet and a
bigger program is really
what’s driving this transaction.”
Shares of Concho fell 8.8%
Wednesday following the announcement, while RSP
shares gained 16%.
The deal is expected to
close in the third quarter
and still requires shareholder
and regulatory approval.
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23848.42 t 9.29, or 0.04%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 25.19 21.08
P/E estimate *
16.20 17.72
Dividend yield
2.24
2.36
All-time high 26616.71, 01/26/18
Nasdaq Composite Index
Last
2605.00 t 7.62, or 0.29%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio * 24.91 24.52
P/E estimate *
16.92 18.27
Dividend yield
1.93
1.97
All-time high 2872.87, 01/26/18
Last Year ago
6949.23 t 59.58, or 0.85%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 25.75
25.97
P/E estimate *
20.02
20.34
Dividend yield
1.01
1.12
All-time high: 7588.32, 03/12/18
Session high
Current divisor 0.14523396877348
UP
Close
t
DOWN
Session open
Open
t
Close
26800
2900
7500
26000
2825
7300
25200
2750
7100
24400
2675
6900
23600
2600
Session low
65-day moving average
65-day moving average
6700
65-day moving average
6500
2525
22800
Bars measure the point change from session's open
2450
22000
Dec.
Jan.
Feb.
Dec.
Mar.
Jan.
Feb.
Mar.
6300
Dec.
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
High
52-Week
Low
% chg
% chg
YTD 3-yr. ann.
Dow Jones
24092.47 23728.67 23848.42
-9.29
Transportation Avg 10290.06 10109.47 10188.19
6.77
Industrial Average
-0.16
27280.01 26896.69 27019.02 -75.13
706.91
698.99
701.66 -1.11
-0.28
683.52
Nasdaq Stock Market
Nasdaq Composite
7036.09
Nasdaq 100
6559.88
688.63
2632.65
2593.06
2605.00
-7.62
MidCap 400
SmallCap 600
1863.25
934.82
1844.00
925.07
1853.78
929.30
2.03
1.44
Other Indexes
Russell 2000
1521.35
1505.64
1513.03
-0.54
12399.23 12271.03 12308.90
6.36
543.69
Value Line
-0.16
6949.23 -59.58 -0.85
6460.81 -69.03 -1.06
6901.07
6410.04
S&P
500 Index
NYSE Composite
0.07
-1.10
691.80
Utility Average
Total Stock Market
Barron's 400
-0.04
538.73
540.16
-0.50
NYSE Arca Biotech
4529.39
4438.03
4497.57
21.53
NYSE Arca Pharma
532.78
524.40
526.94
7.41
KBW Bank
26616.71 20404.49
15.4
-3.5
10.4
11373.38
8783.74
12.3
-4.0
5.4
774.47
647.90
-1.6
-4.8
5.9
29630.47 24125.20
757.37
610.89
10.4
12.6
-2.4
-1.3
7.7
7.6
7588.32
7131.12
-0.29
0.11
0.16
-0.04
0.05
-0.09
0.7
1.0
17.8
19.0
2872.87
2328.95
10.3
-2.6
8.1
1681.04
815.62
8.4
11.3
-2.5
-0.7
7.1
9.2
1610.71
1345.24
10.3
-1.5
6.8
13637.02 11324.53
7.1
-3.9
4.2
4.3
-3.9
2.1
503.24
Volume
(000)
Symbol
SPDR S&P 500
SPY
Net chg
11,379.5 260.40
After Hours
% chg
High
Low
0.57
0.22 260.70 259.58
Brookdale Senior Living BKD
6,763.0
6.90
0.08
1.13
PwrShrs QQQ Tr Series 1 QQQ
5,777.1 157.85
0.60
0.38 158.30 157.19
VanEck Vectors Gold Miner GDX
5,525.7
21.62
-0.04
-0.18
21.69
21.61
4,498.1
35.59 0.0300
0.08
35.76
35.50
Industrial Select Sector XLI
3,985.3
73.22
...
unch.
73.22
73.21
Bank of America
BAC
3,979.8
29.33
-0.06
-0.20
29.51
29.20
iShares MSCI Emg Markets EEM
3,739.0
47.31
0.02
0.04
47.41
47.29
T
AT&T
6.90
6.82
Percentage gainers…
Immunogen
IMGN
669.2
11.21
0.47
4.38
11.22
10.64
Nutrien
NTR
76.8
47.79
1.98
4.32
47.79
46.00
PVH Corp.
PVH
231.0 148.30
4.28
2.97 152.00 141.00
GameStop Cl A
GME
1,039.6
14.44
0.29
2.05
15.60
14.11
Tyson Foods Cl A
TSN
200.2
74.38
1.45
1.99
74.38
72.93
25.8
6.5
3.7
2.8
-3.3
-2.8
...And losers
RSP Permian
RSPP
134.2
38.92
-6.08
-13.51
45.33
38.92
Vale ADR
VALE
187.5
12.07
-0.38
-3.04
12.52
12.07
Church Dwight
CHD
121.7
48.16
-1.08
-2.19
49.58
48.16
American Intl Group
AIG
92.2
53.36
-1.16
-2.13
54.52
53.36
Cigna
CI
156.5 164.90
-3.42
-2.03 168.87 164.90
0.07
105.13
0.07
116.52
88.02
15.0
-1.5
13.8
79.32
-1.60
-1.97
93.26
76.42
-5.3
-6.6
PHLX§ Oil Service
79.64
5.5
135.38
131.87
132.35
-2.87
-2.13
171.55
117.79
-21.7
1331.80
24.94
1294.31
21.71
1299.82 -28.12
0.37
22.87
-2.12
1445.90
37.32
1.64
-11.5 -11.3
960.01 29.1
3.7
9.14 100.3 107.2
23.2
14.9
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Region/Country Index
Close
Percentage Gainers...
Latest
% chg
Net chg
YTD
% chg
3002.92
388.14
261.00
–19.23
–2.70
–2.86
–0.64
–0.69
–1.08
–2.7
–2.3
–2.2
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
625.39
Sao Paulo Bovespa 83874.14
S&P/TSX Comp
15169.94
S&P/BMV IPC
46124.85
Santiago IPSA
4116.29
–1.91
66.08
–46.24
–668.73
–10.31
–0.30
–2.6
9.8
–6.4
–6.5
–2.2
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
The Global Dow
DJ Global Index
DJ Global ex U.S.
–0.30
–1.43
–0.25
369.26
1.69
371.36
0.97
3852.37
27.95
888.52
6.38
5130.44
14.70
11940.71
–0.25
–30.12
1434.43
–14.07 –0.97
22331.36
121.61
527.00
1.24
1226.80
–17.19 –1.38
54763.97 –1286.82 –2.30
9555.00
81.40
552.64
0.48
8756.12
117.70
114129.30 –2067.24 –1.78
7044.74
44.60
–0.17
19356.59
–32.54
S&P/ASX 200
5789.50
Shanghai Composite 3122.29
Hang Seng
30022.53
S&P BSE Sensex
32968.68
Nikkei Stock Avg
21031.31
Straits Times
3382.78
Kospi
2419.29
Weighted
10865.66
SET
1784.99
0.08
0.46
0.26
0.73
0.72
0.29
0.55
0.24
0.86
0.09
1.36
0.64
–5.1
–3.7
–3.2
–4.2
–3.4
–7.6
–5.0
2.2
–3.2
6.3
–8.0
–4.9
–2.8
–6.7
–1.0
–8.4
–6.6
–4.5
–5.6
0.3
–3.2
–7.6
–0.6
–2.0
2.1
1.8
–0.73
–42.80
–44.36 –1.40
–768.30 –2.50
–0.62
–205.71
–286.01 –1.34
–56.57 –1.64
–32.77 –1.34
–121.13 –1.10
–17.59 –0.98
Sources: SIX Financial Information; WSJ Market Data Group
Company
Symbol
RH
Argan
Homology Medicines
RSP Permian
LaSalle Hotel Prprts
RH
Ever-Glory Intl Group
Cocrystal Pharma
ITUS
Sears Hometown Outlet
Quorum Health
EVK
Sears Holdings
Shire ADR
Lilis Energy
OP Bancorp
Unifirst
SHLD
Latest Session
Close Net chg % chg
High
52-Week
Low
% chg
41.52
37.75
...
28.76
24.10
111.2
-30.7
...
9.6
-1.3
Edge Therapeutics
InspireMD
Sorrento Therapeutics
Zosano Pharma
Flex Pharma
EDGE
0.50
0.75
0.44
0.35
1.04
14.93
14.25
13.13
12.73
12.48
3.90
6.58
6.43
4.10
9.43
1.96
0.17
0.60
1.38
2.54
40.0
...
23.3
-20.5
71.6
Geron
TOP Ships
Nortech Systems
Professional Diversity
Innovate Biopharm
GERN
2.81 0.31
SHPG 144.53 15.66
LLEX
3.92 0.40
OPBK
12.24 1.24
UNF
159.65 14.75
12.40
12.15
11.36
11.27
10.18
14.32 1.99
192.15 123.73
5.69 2.96
...
...
176.15 133.45
-75.6
-18.9
-0.8
68.8
13.2
Pareteum
Zion Oil Gas
PTC Therapeutics
Ability
Arcadia Biosciences
TEUM
FIXX
RSPP
LHO
3.85
5.97
3.79
3.10
9.37
COCP
ITUS
SHOS
QHC
Most Active Stocks
Company
Symbol
General Electric
SPDR S&P 500
VS 2x VIX Short Term
PwrShrs QQQ Tr Series 1
Finl Select Sector SPDR
GE
Bank of America
iShares MSCI Emg Markets
ProSharesUltVIXST
Advanced Micro Devices
Micron Technology
BAC
SPY
TVIX
QQQ
XLF
EEM
UVXY
AMD
MU
Volume % chg from Latest Session
(000) 65-day avg Close % chg
136,642
135,007
91,519
83,456
82,427
48.8
19.0
149.1
83.9
33.5
75,252
74,402
68,017
64,225
62,582
3.1
2.6
59.4
5.1
23.0
13.68 1.79
259.83 -0.30
10.92 4.40
157.25 -1.15
27.20 0.18
29.39
47.29
20.67
9.81
51.49
52-Week
High
Low
30.54 12.73
286.63 232.51
47.19
4.66
175.21 130.38
30.33 22.89
-0.44
-0.50
2.84
-1.90
-1.74
33.05
52.08
87.00
15.65
63.42
22.07
38.71
8.52
9.70
26.36
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
t
30-year fixed-rate
mortgage
t
10-year Treasury
note yield
BankPlus
Belzoni, MS
4.00%
800-881-7587
2.00
Manasquan Bank
Manasquan, NJ
4.00%
732-292-8400
1.00
El Dorado Savings Bank
South Lake Tahoe, CA
4.13%
800-874-9779
3.00
0.00
A M J J A S O N D J FM
2017
2018
3.88%
800-922-8429
Carolina Equity Services, Inc.
4.25%
Apex, NC
919-467-6192
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.50-1.75 1.25-1.50
Prime rate*
4.50
4.75
Libor, 3-month
2.27
2.31
Money market, annual yield
0.35
0.35
Five-year CD, annual yield
1.65
1.66
30-year mortgage, fixed†
4.46
4.44
15-year mortgage, fixed†
3.92
3.89
Jumbo mortgages, $424,100-plus† 4.69
4.75
Five-year adj mortgage (ARM)† 4.19
4.27
New-car loan, 48-month
3.61
3.67
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.75 l
l
4.00
l
1.15
0.25 l
l
1.28
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.75
2.31
0.36
1.66
4.49
3.95
4.96
4.50
3.67
1.50
1.50
2.03
-0.07
0.17
0.54
0.64
0.34
0.82
0.70
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
Wednesday
t
One year ago
1
3 6
month(s)
1 2 3 5 710
years
maturity
15%
10
2.25
5
1.50
0
0.75
–5
0.00
–10
30
Euro
Yen
s
WSJ Dollar index
2017
2018
Corporate Borrowing Rates and Yields
Yield (%)
Last Week ago
52-Week
High
Low
1436.969
2.634
2.722
2.736
1.818
10-yr Treasury, Ryan ALM 1683.983
DJ Corporate
371.538
Aggregate, Barclays Capital 1912.090
High Yield 100, Merrill Lynch 2824.395
Fixed-Rate MBS, Barclays 1961.870
Muni Master, Merrill
516.019
2.777
3.737
3.150
6.286
3.330
2.497
2.901
3.814
3.230
6.172
3.410
2.520
2.943
3.814
3.230
6.319
3.410
2.520
2.058 –1.218 –0.543
2.879 1.890 2.077
2.380 1.125 1.165
4.948 2.978 3.480
2.660 0.875 1.133
1.736 1.925 1.804
791.196
6.033
6.076
6.104
5.279
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
Close
TOPS
NSYS
IPDN
INNT
ZN
PTCT
ABIL
RKDA
4.23
2.07
2.97
2.75
24.35
-0.92
-0.45
-0.64
-0.57
-4.55
6.68
-17.86
-17.86 217800.00
6.24
-17.73
11.23
-17.17
32.99
-15.74
1.74
1.30
2.87
2.45
3.43
88.8
-99.9
-18.9
-71.8
91.7
2.60
3.96
27.04
3.31
22.65
-0.48
-0.73
-4.88
-0.59
-3.86
-15.58
-15.57
-15.29
-15.13
-14.56
0.50
1.09
8.62
2.64
3.60
132.1
235.6
209.4
-84.4
64.1
3.59
6.90
33.22
21.50
66.56
Ranked by change from 65-day average*
Edge Therapeutics
OP Bancorp
Virtus Newflt Dyn Credit
Azure Power Global
ProShares Sh 7-10 Yr Tr
EDGE
OPBK
BLHY
AZRE
TBX
IBD
Inspire Corp Bd Impact
IWL
iShares Russell Top 200
MGNX
Macrogenics
VanEck NDR CMG Long/Flat LFEQ
ISMD
Inspire Sml/MC Impact
Volume % chg from Latest Session
(000) 65-day avg Close % chg
31,409
1,651
668
253
803
20070
14587
3802
2807
2795
440
377
4,223
317
134
2279
2060
1435
1432
1334
US$vs,
YTDchg
Wed
in US$ per US$ (%)
52-Week
High
Low
1.31 -91.60
12.24 11.27
24.71 -0.41
13.41 -1.11
29.04 0.14
24.54
59.79
23.51
25.80
25.87
17.77 1.15
...
...
25.49 24.43
22.00 12.53
29.70 27.55
0.42
-0.08
-0.38
0.43
0.18
29.30
66.19
32.74
28.49
27.86
24.07
53.27
14.36
24.98
23.78
Vietnam dong
Argentina peso
.0496 20.1455 8.3
Brazil real
.3012 3.3204 0.2
Canada dollar
.7739 1.2922 2.8
Chile peso
.001655 604.10 –1.9
Ecuador US dollar
1
1 unch
Mexico peso
.0546 18.3062 –6.9
Uruguay peso
.03534 28.3000 –1.7
Venezuela b. fuerte .00002049600.0001 479504.7
Europe
Total Return (%)
52-wk
3-yr
0.097 0.205
2.756 5.397
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7662 1.3051
China yuan
.1588 6.2979
Hong Kong dollar
.1274 7.8473
India rupee
.01536 65.115
Indonesia rupiah .0000724 13804
Japan yen
.009359 106.85
Kazakhstan tenge .003133 319.20
Macau pataca
.1237 8.0826
Malaysia ringgit
.2593 3.8570
New Zealand dollar
.7211 1.3868
Pakistan rupee
.00865 115.550
Philippines peso
.0191 52.284
Singapore dollar
.7620 1.3124
South Korea won .0009394 1064.52
Sri Lanka rupee
.0064230 155.69
Taiwan dollar
.03430 29.151
Thailand baht
.03197 31.280
Commodities
1.9
–3.2
0.4
1.9
2.4
–5.2
–4.1
0.5
–5.0
–1.6
4.4
4.6
–1.9
–0.2
1.4
–1.7
–4.0
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Bond total return index
-84.6
-96.0
13.6
-75.9
10.6
U.S.-dollar foreign-exchange rates in late New York trading
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
1.15
1.33
1.50
3.61
2.68
Currencies
Forex Race
3.75%
17.77
36.75
10.65
41.60
8.98
FLKS
Symbol
Country/currency
notes and bonds
1.31 -14.28 -91.60
1.35 -1.05 -43.75
4.60 -1.70 -26.98
9.17 -2.97 -24.46
5.13 -1.60 -23.77
ZSAN
52-Week
Low
% chg
CURRENCIES & COMMODITIES
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
t
4.00%
Cathay Bank
Los Angeles, CA
* 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.
High
SRNE
Company
Track the Markets
4.44%
Bankrate.com avg†:
NYSE Arca
* 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
s
Selected rates
Nasdaq
Total volume*2,469,465,866 369,001,464
Adv. volume* 886,105,038 162,468,679
Decl. volume*1,553,404,930 204,309,572
Issues traded
3,059
1,344
Advances
1,305
633
Declines
1,615
685
Unchanged
139
26
New highs
26
2
New lows
113
29
Closing tick
74
58
Closing Arms†
1.42
1.15
Block trades*
8,982
1,409
Latest Session
Close Net chg % chg
NSPR
Volume Movers
s
U.S. consumer rates
Symbol
109.53
72.70
...
47.17
31.75
Benchmark
Yields
Treasury yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
22.48
17.28
16.63
15.62
15.33
92.24 16.93
44.80 6.60
18.66 2.66
45.00 6.08
28.13 3.74
AGX
Total volume* 926,991,053 10,303,243
Adv. volume* 463,412,684 3,102,106
Decl. volume* 453,459,032 6,835,179
Issues traded
3,075
330
Advances
1,536
135
Declines
1,426
175
Unchanged
113
20
New highs
19
2
New lows
114
22
Closing tick
19
17
Closing Arms†
1.08
2.31
Block trades*
6,994
142
Percentage Losers
CREDIT MARKETS
Interest rate
Last
498.46
103.87
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
Company
3449.61
80.75
World
NYSE NYSE Amer.
4939.86
106.07
Nasdaq PHLX
Volume, Advancers, Decliners
1.43 593.12
PHLX§ Gold/Silver
PHLX§ Semiconductor
Cboe Volatility
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 50,000 shares.
Most-active issues in late trading
12.4
14.2
1995.23
979.57
589.69
0.48
5805.15
5353.59
Late Trading
.00004382
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
22819
0.5
.04834 20.686
.1652 6.0542
1.2310 .8124
.003939 253.87
.010131 98.71
.1272 7.8639
.2928 3.4150
.01732 57.749
.1197 8.3515
1.0455 .9565
.2494 4.0102
.0380 26.2965
1.4076 .7104
–2.8
–2.4
–2.5
–2.0
–4.7
–4.2
–1.8
0.1
2.0
–1.8
5.7
–6.6
–4.0
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
.0567 17.6490 –0.7
.2850 3.5083 0.8
3.3377 .2996 –0.6
2.5974 .3850 0.01
.2738 3.652 0.1
.2666 3.7503
...
.0849 11.7751 –4.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 83.94
Wednesday
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.
625.73
-3.15
194.31
64.38
2.698
1324.20
-1.26
-0.87
-0.016
-17.80
0.61 0.73 –2.37
Sources: Tullett Prebon, WSJ Market Data Group
-0.50
% Chg
YTD
% chg
645.87
532.01
10.54
0.06
-0.65 200.52
66.14
-1.33
3.63
-0.59
-1.33 1362.40
166.50
42.53
2.55
1208.60
4.91
30.03
-15.02
5.65
0.23
6.55
-8.64
1.37
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 | Thursday, March 29, 2018
COMMODITIES
Futures Contracts
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
2.9655
2.9980
2.9645
2.9940 0.0020
April
May
2.9830
3.0100
2.9685
3.0020 0.0015
Gold (CMX)-100 troy oz.; $ per troy oz.
1345.00 1346.40
1322.40 1324.20 –17.80
April
June
1351.10 1352.20
1327.70 1330.00 –17.90
Aug
1356.80 1358.30
1334.00 1336.10 –18.00
Oct
1362.60 1363.10
1341.90 1342.00 –18.10
Dec
1369.20 1370.90
1347.00 1348.60 –18.00
Dec'19
1399.00 1399.00
1389.50 1387.80 –18.90
Palladium (NYM) - 50 troy oz.; $ per troy oz.
967.70
972.65
959.75
963.20 –8.60
June
Sept
964.25
965.60
t 955.55
958.20 –8.45
Platinum (NYM)-50 troy oz.; $ per troy oz.
944.50
947.70
t 933.40
934.70 –12.00
April
July
950.20
953.60
t 938.80
940.80 –11.60
Silver (CMX)-5,000 troy oz.; $ per troy oz.
April
16.450
16.450
16.195
16.205 –0.292
May
16.515
16.560
16.220
16.253 –0.288
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
May
64.70
65.13
63.72
64.38 –0.87
June
64.66
65.08
63.68
64.35 –0.83
July
64.32
64.76
63.39
64.06 –0.80
Sept
63.41
63.67
62.42
63.07 –0.76
Dec
61.89
62.23
60.95
61.59 –0.70
Dec'19
57.33
57.68
56.60
57.28 –0.39
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
April
2.0120
2.0295
1.9969
2.0148 –.0076
May
2.0128
2.0304
1.9960
2.0139 –.0103
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
April
2.0139
2.0270
1.9940
2.0116 –.0019
May
2.0188
2.0343
2.0012
2.0192 –.0018
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.720
2.731
2.690
2.698 –.016
May
June
2.769
2.780
2.740
2.751 –.015
July
2.825
2.835
2.795
2.808 –.014
Sept
2.826
2.836
2.800
2.809 –.014
Oct
2.839
2.848
2.810
2.822 –.014
Jan'19
3.094
3.095
3.061
3.074 –.011
374.25
382.75
375.00
383.25
Oats (CBT)-5,000 bu.; cents per bu.
372.00
380.50
226.00
233.25
Open
interest
Chg
t
t
12.48
12.61
12.18
12.32
12.21
12.34
–.33 403,088
–.32 247,558
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
t
24.45
24.45
t
24.91
24.95
Cotton (ICE-US)-50,000 lbs.; cents per lb.
May
82.00
82.13
80.67
80.74
Dec
77.35
77.50
76.97
76.99
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
138.00
141.45
137.55
141.10
May
July
138.70
141.30
137.90
141.20
24.45
24.91
May
July
4,016
150,625
37,534
374,407
50,555
7,466
46,254
3,342
24.45
25.09
–.03
…
–1.28 113,091
–.63 73,302
3.40
3.20
9,560
1,988
Interest Rate Futures
22,779
1,191
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
5,427
70,072
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
362
149,212
June
Sept
145-230 146-100
145-030 145-110
June
Sept
121-000 121-090
120-250 120-300
145-130
144-300
120-250
120-235
145-280
144-290
8.0 799,319
8.0
80
120-290
120-215
… 3,502,447
1.0
454
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
512,247
357,399
159,602
175,723
255,928
135,687
March
June
114-225 114-312
114-137 114-197
March
June
106-200 106-200
106-110 106-127
114-225
114-082
114-202
114-112
–1.2
3,096
–.7 3,383,281
106-175
106-092
–1.0
9,681
–1.5 1,904,380
98.498
98.325
… 122,271
… 363,372
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
106-185
106-082
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
16,207
132,923
March
April
98.500
98.325
June
95.000
May
Sept
98.1000
97.8350
98.500
98.325
98.498
98.320
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
95.000 s
94.625
98.1000
97.8425 s
98.0925
97.8350
94.734
.109
27,223
98.0925 –.0100
97.8450 –.0200
1,419
104
1 Month Libor (CME)-$3,000,000; pts of 100%
18,323
163,771
Eurodollar (CME)-$1,000,000; pts of 100%
400,625
98,340
156,546
99,655
132,106
71,657
97.7425
97.7300
97.5500
97.2350
April
June
Dec
Dec'19
97.7425
97.7400
97.5750
97.2700
97.7125
97.7000
97.5100
97.2000
373.50
382.25
97.7250 –.0150 315,833
97.7150 –.0150 1,789,818
97.5200 –.0200 2,068,572
97.2200
… 2,159,579
Currency Futures
–.50 646,134
–.25 490,016
226.75
233.25
–4.25
–3.00
.9486
.9531
April
June
.7764
.7774
April
June
1.4183
1.4219
June
1.0633
.9501
.9542
.7770
.7786
1.4200
1.4244
–3.50 224,069
–3.75 132,355
44,585
–.0026
1,377
–.0025
529
–.0026 101,836
–.0027
644
–.0026
370
23854
23872
24075
24053
23707
23753
S&P 500 Index (CME)-$250 x index
3,133
19,901
2610.70
June
2633.00
2593.50
Mini S&P 500 (CME)-$50 x index
2612.75
2615.25
June
Sept
.575 43,025
.325 159,907
2633.75
2638.00
2593.00
2597.25
June
1851.00
June
Sept
6550.3
6570.0
1865.50
1842.20
Mini Nasdaq 100 (CME)-$20 x index
6582.3
6613.5
6421.0
6454.5
Mini Russell 2000 (ICE-US)-$100 x index
1516.00
June
1526.80
1506.40
Mini Russell 1000 (ICE-US)-$100 x index
June
1451.40
June
Sept
88.97
88.73
1451.40
1445.10
U.S. Dollar Index (ICE-US)-$1,000 x index
43 109,767
46 76,744
89.82
89.40
88.90
88.60
–1.20 140,358
–1.20 59,897
23860
23890
1 103,075
…
648
2607.60
–8.10
2607.50
2612.25
50,228
–8.25 2,884,080
–8.00 59,939
1856.20
4.30
6477.3
6508.5
1517.30
78,993
Natural gas (bcf)
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
1,189,520
...
429,949
239,593
24,577
48
24,529
215,016
1,400
...
-2,100
...
...
...
428
243
25
0
24
219
1,446
...
41,131
128,954
10,304
118,650
34,236
257,264
...
-1,600
...
...
...
...
Net crude, petroleum
products, incl. SPR
1,854,978
1,191 1,336
...
Current
Total petroleum
product
Year
ago
34,449
935
4-week
avg
5-year
avg
42
133
11
122
33
253
40
134
13
121
39
235
147
150
21
129
280
732
...
...
...
...
...
...
51 176
122 115
7
19
93
95
239 114
732 1,291
143
190
15
159
237
800
106
190
51
139
170
867
2,368 4,394
3,327
5,730
Natural gas storage
1,524
3,917
549
1,242
4,120
1,733
4,222
133
1,169
3,093
1,770
4,013
296
1,435
3,873
1,473
3,940
353
...
...
4250
3250
t
2250
Five-year average
for each week
1250
250
J A S O N D
J F M
2018
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
ETF
Wednesday, March 28, 2018
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
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
9.25
99.89
52.27
66.02
27.20
98.23
80.79
73.22
107.06
103.76
120.49
65.16
57.19
62.24
261.62
185.02
76.29
59.62
106.94
94.14
73.15
51.42
104.22
50.92
12.73
116.86
85.35
112.22
104.52
70.75
43.54
0.11 –14.3
1.2
–1.22
1.38 –8.1
–1.95 –8.6
0.18 –2.5
–0.12 –2.8
0.54 –2.3
–0.34 –3.2
0.05 –2.0
–0.03 –0.7
–0.04 –1.4
0.48 –1.4
0.5
–0.45
0.14 –1.3
–0.27 –2.7
0.19 –2.5
0.13 –0.7
–0.25 –2.5
0.06 –2.2
... –4.5
0.2
0.54
0.27 –2.6
1.1
–0.61
0.2
–0.05
1.8
–1.39
0.27 –3.9
–0.05 –2.2
0.26 –3.3
0.05 –1.9
0.07 –1.9
7.6
0.44
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
BKLN
JNK
GLD
SCHF
SCHB
SCHD
69.05
64.52
47.29
42.94
59.92
105.98
108.91
133.99
144.79
118.49
188.12
150.31
121.00
154.19
203.74
85.37
215.11
152.67
108.08
37.49
110.32
112.81
83.53
102.98
121.20
101.57
157.25
23.08
35.77
125.73
33.34
62.97
48.42
0.58
...
–0.50
0.44
1.13
0.82
0.15
–0.52
–0.27
–0.03
–0.49
–0.03
0.48
–0.27
–0.14
0.15
–0.24
–0.54
0.08
0.24
–0.01
...
0.01
–0.02
–0.53
...
–1.15
–0.09
–0.06
–1.38
0.57
–0.24
0.35
–1.8
0.0
0.4
–1.0
–0.0
–0.7
–1.7
–0.5
–2.6
–4.7
0.8
–1.4
–3.8
–2.5
–2.1
–4.2
–0.3
–0.1
–5.4
–1.5
0.1
–1.1
–0.4
–2.5
0.5
0.0
1.0
0.2
–2.6
1.7
–2.1
–2.4
–5.4
Long term
4.440 3.990 4.530
516.02
-1.2
Muni Master
2.497 1.736 2.520
556.56
-2.1
Double-A-rated
3.250 2.470 3.320
358.70
-1.9
7-12 year
2.593 1.744 2.635
704.07
-2.5
Triple-B-rated
4.070 3.340 4.120
405.37
-1.6
12-22 year
2.863 2.213 2.905
393.44
-1.7
22-plus year
3.247 2.716 3.296
3753.40 -4.7
High Yield Bonds Merrill Lynch
413.57
-1.0
High Yield Constrained 6.417 5.373 6.417
Global Government J.P. Morgan†
0.5
422.32
-0.04
U.S Agency Bloomberg Barclays
Global Government 1.490 1.300 1.650
1627.26
-0.6
U.S Agency
2.570 1.690 2.650
290.30
0.6
Japan
0.360 0.340 0.460
1456.32
-0.4
10-20 years
2.460 1.490 2.530
562.27
0.3
Netherlands
0.610 0.390 0.830
0.2
U.K.
1.540 1.340 1.830
3320.24
-2.0
20-plus years
3.190 2.730 3.400
932.32
2420.74
-1.7
Yankee
3.450 2.610 3.500
791.20
-2.1
Emerging Markets ** 6.033 5.279 6.104
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
Closing Chg YTD
Symbol Price (%) (%)
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
62.21
238.28
337.08
259.83
90.35
64.15
21.66
167.42
128.05
161.78
99.79
43.77
46.14
57.75
68.59
53.74
139.60
152.30
81.53
81.58
84.58
119.48
152.13
108.03
75.56
238.64
78.40
78.34
145.15
79.73
54.67
55.92
133.88
72.73
101.94
55.70
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
2.250
2.750
4.500
Australia 2
10
0.750
0.000
0.500
0.050
2.000
0.100
0.100
1.400
1.400
0
1
l
l
1.990 t
2.601 t
l
l
France 2 -0.495 s
10 0.734 s
l
Germany 2 -0.607 s
10 0.505 t
l
l
l
Italy 2 -0.316 t
10 1.841 t
l
Japan 2 -0.151 t
10 0.036 t
l
Spain 2 -0.308 s
10 1.214 t
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
U.S. 2 2.290 s
10 2.776 t
2.250
0.000
Latest(l)-2 -1
l
l
l
0.835 t
1.369 t
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.274
2.777
2.250
2.862
1.305
2.420
2.043
2.008
1.746
-30.0
-23.1
44.0
2.665
2.794
2.711
-17.6
-11.2
29.1
-0.500
-0.453
-178.9
0.924
-0.483 -278.5
0.971
-204.3
-277.4
0.733
-204.5
-144.9
-0.612
-0.596
-288.6
-200.3
0.505
0.657
-0.698 -289.8
0.391
-227.2
-227.2
-202.9
-0.312
-0.195
-0.078
-260.7
-258.6
-138.3
1.873
1.975
2.154
-93.6
-90.5
-26.5
-0.148
-0.159
-0.261
-244.1
-242.2
-156.7
0.039
0.052
0.060
-274.1
-273.8
-236.0
-0.332
-0.370
-0.212
-259.8
-260.6
-151.8
1.234
1.461
1.659
-156.2
-154.4
-76.1
0.889
0.690
0.183
-145.5
-138.6
-112.3
1.419
1.504
1.195
-140.7
-135.8
-122.5
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Natural gas,
lower 48 states
Largest 100 exchange-traded funds, latest session
Freddie Mac (FHLMC) 3.340 2.680 3.420
Investment-grade spreads that tightened the most…
Billions of cubic feet; weekly totals
A M J
2017
Fannie mae (FNMA) 3.320 2.670 3.410
-1.3
0.520 0.210 0.740
1.11
.72
42
153
10
143
40
261
...
...
...
...
...
-1.3
1773.04
0.820 0.690 1.090
41
131
11
120
33
254
1,812
4,375
128
1,326
4,068
1151.08
3.490 2.530 3.550
Germany
...
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
3.800 3.030 3.860
Intermediate
0.2
...
8,910
U.S. Corporate
-1.6
508.55
38
...
9,363
-2.6
2576.73
1.050 0.956 1.311
...
9,524
2725.67
France
...
...
3.330 2.660 3.410
0.7
2
9,324
-1.4
715.72
2
...
1925.73
Europe High Yield Constrained 2.852 1.897 3.145
2
9,208
Mortgage-Backed
Ginnie Mae (GNMA) 3.320 2.630 3.410
-0.5
2
motor gasoline
Kerosene-type
-1.3
304.75
9,030
7,671
636
60
0
60
576
Finished
U.S. Corporate Indexes Bloomberg Barclays
1961.87
–1.50
7,703
615
37
0
37
578
20,748 19,021
3.150 2.380 3.230
U.S. Aggregate
2.130 1.570 2.340
7,077 8,224
564 521
123
8
0
0
123
8
441 513
19,874
Mortgage-Backed Bloomberg Barclays
EMU§
...
...
...
...
...
...
3,823
Yield (%)
Latest Low High
Index
1.3
1445.50 –29.90
89.72
89.29
-1.7
YTD total
return (%)
375.39
8,148
685
8
0
8
677
20,675
Index
Total
return
close
Global High Yield Constrained 5.755 4.934 5.755
464
229
32
0
32
197
...
Yield (%)
Latest Low High
-0.8
429
245
25
0
25
220
20,917
YTD total
return (%)
375.99
534
240
24
0
24
216
5-year
avg
Total
return
close
Canada
9,749
4-week
avg
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
0.2
9,854
Year
ago
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
543.87
8,934 10,604
Expected Previous
change
week
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 3/27
Source: WSJ Market Data Group
** EMBI Global Index
...
31.9000
0.2200
n.a.
0.2997
0.2475
n.a.
756.44
...
Weekly Demand, 000s barrels per day
16.3800
19.6560
16.3060
20.3830
£11.6300
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
6.286 4.948 6.319
10,314
1,902
n.a.
87
3.4000
108.8
520.0
320
98
295
2.5925
25.50
8.0538
374.80
10.799 9.640 11.091
1,208
1,861
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
SoybeanMeal,Cent IL,rail,ton48%-u
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6100
0.7974
*91.05
n.a.
n.a.
High Yield 100
1,195
1,857 2,029
1335.92
1436.11
1332.45
1479.02
*1350.65
*1341.45
1378.62
1391.88
1391.88
1606.28
1302.35
1391.88
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
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Expected Previous
change
week
Current
Fibers and Textiles
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
198.88
189.34
1.0613
2.1850
147.50
153.00
69.75
2892
1.1982
1.3943
2.6550
15.00
n.a.
58.33
1.0838
0.8799
120.00
162.50
Triple-C-rated
t
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
5-year
avg
Metals
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
-1.3
Imports, 000s barrels per day
4-week
avg
LBMA Platinum Price PM
*949.0
Platinum,Engelhard industrial
942.0
Platinum,Engelhard fabricated
1042.0
Palladium,Engelhard industrial
982.0
Palladium,Engelhard fabricated
1082.0
Aluminum, LME, $ per metric ton
*2035.0
Copper,Comex spot
2.9940
Iron Ore, 62% Fe CFR China-s
63.1
Shredded Scrap, US Midwest-s,m
366
Steel, HRC USA, FOB Midwest Mill-s
868
9.7000
7.3950
4.4600
4.5100
5.5025
2824.40
Inventories, imports and demand for the week ended March 23. Current figures are in thousands of barrels or
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import
Natural-gas import and demand data are available monthly only.
Year
ago
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
–84.0 228,360
–84.3
6,101
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Expected Previous
Current change
week
Wednesday
16.4550
12001
Other metals
Gold, per troy oz
1912.09
Source: SIX Financial Information
Inventories, 000s barrels
0.8048
0.9126
2.640
2.590
2.520
2.000
1.980
2.090
2.460
63.000
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
–.0096
1,589
–.0096 503,876
Mini S&P Midcap 400 (CME)-$100 x index
–.825 24,141
2.600 100,458
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Broad Market Bloomberg Barclays
Index Futures
June
Sept
Wednesday
Energy
.00028 199,946
Mini DJ Industrial Average (CBT)-$5 x index
32,190
12,863
4,240
3,370
1.0519 –.0113
.7700
.7696
.7704
.7702
.7708
–3.00 107,448
–3.50 81,975
.01
–.06
1.0505
1.4092 –.0075
1,045
1.4127 –.0074 173,671
t
.7658
.7662
t
.7660
.7663
t
.7655
.7663
t
.7664
.7668
t
.7662
.7675
Mexican Peso (CME)-MXN 500,000; $ per MXN
June
.05371
.05429 s
.05357
.05409
Euro (CME)-€125,000; $ per €
April
1.2425
1.2426
1.2315
1.2325
June
1.2478
1.2492
1.2369
1.2381
.7692
.7693
.7687
.7698
.7670
April
May
June
Sept
Dec
5,750
1,354
5,340
869
1.4082
1.4113
1.0639
Wednesday, March 28, 2018
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
.7748 –.0022
227
.7756 –.0022 120,670
Australian Dollar (CME)-AUD 100,000; $ per AUD
.04 236,459
.03 125,244
.10
1.10
.7741
.7743
Swiss Franc (CME)-CHF 125,000; $ per CHF
–1.10 189,325
–1.40 124,981
.550
2.150
.9368 –.0121
856
.9406 –.0122 159,521
British Pound (CME)-£62,500; $ per £
–1.50 348,391
–1.50 249,161
–3.75
–3.75
.9356
.9393
Canadian Dollar (CME)-CAD 100,000; $ per CAD
4,534
1,171
…
.50
April
June
Cash Prices
3,218
2,673
Japanese Yen (CME)-¥12,500,000; $ per 100¥
t 221.50
221.75
t 230.00
230.50
Soybeans (CBT)-5,000 bu.; cents per bu.
1019.50 1023.25
1015.00 1018.00
May
July
1030.25 1033.75
1026.00 1028.75
Soybean Meal (CBT)-100 tons; $ per ton.
372.10
376.10
369.50
371.30
May
July
374.60
378.50
372.10
373.70
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
31.58
31.89
31.40
31.62
May
July
31.85
32.14
31.66
31.88
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
May
1246.50 1252.00
1243.00 1244.50
July
1264.00 1265.50
1263.50 1261.50
Wheat (CBT)-5,000 bu.; cents per bu.
May
449.50
452.50
444.50
445.50
July
466.75
469.75
462.00
462.75
Wheat (KC)-5,000 bu.; cents per bu.
May
466.50
467.00
457.75
461.00
July
486.25
486.50
477.50
480.00
Wheat (MPLS)-5,000 bu.; cents per bu.
593.50
594.75
586.50
589.50
May
July
601.75
603.75
594.75
598.00
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
135.600 136.125
135.300 135.975
March
May
136.750 139.325
136.525 138.500
Cattle-Live (CME)-40,000 lbs.; cents per lb.
April
115.450 116.425
114.825 116.000
June
105.225 106.425
t 104.500 105.575
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
April
56.850
57.400
t 56.750
56.925
June
72.950
76.925
t 72.950
76.625
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
May
507.00
511.90
498.60
507.10
July
492.00
499.00
489.10
496.00
Milk (CME)-200,000 lbs., cents per lb.
14.21
14.25
14.21
14.23
March
May
14.43
14.45
14.29
14.33
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,570
2,603
2,490
2,597
May
July
2,596
2,634
2,521
2,629
Coffee (ICE-US)-37,500 lbs.; cents per lb.
119.15
119.20
117.35
117.75
May
July
121.30
121.30
119.50
119.80
May
July
12.48
12.58
May
July
Open
interest
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Settle
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Metal & Petroleum Futures
May
July
Contract
High hilo
Low
Open
WSJ.com/commodities
–0.29
–0.00
0.21
–0.30
0.58
–0.67
–1.50
–0.99
0.40
–0.25
0.07
0.48
–0.69
0.64
0.28
0.28
–0.56
0.38
0.11
–0.04
0.08
–0.30
–0.40
–0.12
2.51
–0.28
–0.04
0.03
0.06
–0.01
...
0.34
–0.23
–0.04
...
2.77
–2.5
–3.7
–2.4
–2.6
–4.4
0.3
–6.8
1.6
–3.6
0.6
–2.2
–2.4
0.5
–2.4
–2.1
–1.8
–0.7
–1.2
–4.8
–2.7
–3.2
–2.5
–1.7
–3.2
–8.9
–2.7
–0.9
–1.2
–1.8
–2.3
0.6
–1.6
–2.5
–2.1
–4.1
–6.1
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
American Express
AXIS Specialty Finance
Microsoft
Baxalta*
AXP
AXS
MSFT
SHPLN
2.200
5.875
2.650
2.875
Oct. 30, ’20
June 1, ’20
Nov. 3, ’22
June 23, ’20
70
93
32
93
–22
–17
–12
–12
83
n.a.
38
99
92.21
…
89.39
...
0.86
…
–0.09
...
Norfolk Southern
Royal Bank of Scotland
General Electric
Berkshire Hathaway Energy
NSC
RBS
GE
BRKHEC
3.000
8.625
5.000
2.375
April 1, ’22
Aug. 15, ’49
Jan. 21, ’49
Jan. 15, ’21
51
282
227
57
–11
–11
–10
–9
n.a.
247
227
n.a.
133.97
7.36
13.68
...
0.28
0.82
1.79
...
…And spreads that widened the most
Bank of America
VMware
National Rural Utilities Cooperative Finance
Toyota Industries
BAC
VMW
NRUC
TOYAUT
4.100 July 24, ’23
2.300 Aug. 21, ’20
4.750 April 30, ’43
3.566 March 16, ’28
89
120
130
83
25
24
16
16
90
n.a.
n.a.
n.a.
29.39
119.95
...
...
–0.44
–2.77
...
...
Viacom
Toronto–Dominion Bank*
International Business Machines
Mylan
VIA
TD
IBM
MYL
3.875
2.500
3.375
5.250
110
76
70
211
15
14
12
12
n.a.
70
66
200
38.90
56.10
152.52
40.50
...
–0.30
0.40
2.45
Dec. 15, ’21
Dec. 14, ’20
Aug. 1, ’23
June 15, ’46
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Last week
1.78
1.38
1.25
1.25
79.125
n.a.
96.750
116.500
9.76
...
...
9.19
101.250
53.500
94.250
97.000
...
...
...
...
78.000
95.250
92.875
69.750
...
...
257.78
...
...
...
–7.67
...
n.a.
103.000
80.375
94.000
...
4.86
7.24
...
...
–0.61
0.98
...
Issuer
Symbol
Transocean
Valeant Pharmaceuticals International
Halcon Resources
McClatchy
RIG
VRXCN
HKUS
MNI
6.800 March 15, ’38
6.125 April 15, ’25
6.750 Feb. 15, ’25
6.875 March 15, ’29
78.531
87.375
98.500
119.750
Rackspace Hosting
Claire's Stores
International Wire
Endeavor Energy Resources
RAX
8.625 Nov. 15, ’24
CLE
9.000 March 15, ’19
ITWG
10.750
Aug. 1, ’21
ENDENR 5.500
Jan. 30, ’26
99.250
58.500
95.250
99.709
1.25
1.00
1.00
0.96
Stock Performance
Close ($)
% chg
–0.91
...
...
–1.16
...
...
...
...
…And with the biggest price decreases
Talen Energy Supply
CEC Entertainment
Tesla
Acosta
TLN
CEC
TSLA
ACOSTA
6.500
8.000
5.300
7.750
June 1, ’25
Feb. 15, ’22
Aug. 15, ’25
Oct. 1, ’22
Murray Energy
Sprint
Frontier Communications
First Quantum Minerals
MURREN 11.250
S
7.875
FTR
11.000
FMCN
6.875
April 15, ’21
Sept. 15, ’23
Sept. 15, ’25
March 1, ’26
71.250 –6.13
–4.13
89.750
–3.25
88.000
–2.50
63.500
38.500
102.120
75.438
95.000
–1.50
–1.38
–1.31
–1.25
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
.
THE WALL STREET JOURNAL.
Thursday, March 29, 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.
Stock
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Fortis
FTS
Fortive
FTV
FortBrandsHome FBHS
Franco-Nevada FNV
t FranklinRscs BEN
FreeportMcM FCX
FreseniusMed FMS
Stock
Stock
Net
Sym Close Chg
Net
Sym Close Chg
BankofMontreal BMO 74.66 -0.17
BankNY Mellon BK 50.61 -0.11
BkNovaScotia BNS 60.73 -0.18
BankofOzarks OZRK 47.32 0.34
Barclays
BCS 11.76 0.06
BarrickGold ABX 12.39 -0.17
BaxterIntl BAX 63.85 -1.02
BectonDicknsn BDX 212.43 -0.59
BeiGene
BGNE 164.01 -1.09
Berkley
WRB 72.61 1.39
BerkHathwy A BRK.A 295041391.00
BerkHathwy B BRK.B 196.67 0.52
BerryGlobal BERY 54.04 -0.09
BestBuy
BBY 68.56 0.82
Bio-RadLab A BIO 247.62 -1.96
Biogen
BIIB 271.82 6.66
BioMarinPharm BMRN 79.62 1.58
BlackKnight BKI 46.70 -0.25
BlackBerry BB 12.20 -0.20
BlackRock BLK 528.03 -4.08
Blackstone BX 31.52 -0.25
BlueBuffaloPet BUFF 39.77 -0.01
bluebirdbio BLUE 172.15 -3.05
Boeing
BA 320.02 -1.10
BookingHldgs BKNG 2054.69-22.87
BorgWarner BWA 48.65 -0.55
BostonProps BXP 123.40 3.33
BostonSci BSX 26.68 -0.35
Braskem
BAK 26.86 -0.56
BrightHorizons BFAM 97.69 -0.17
t BrighthouseFin BHF 51.04 0.41
Bristol-Myers BMY 62.57 0.16
BritishAmTob BTI 57.33 1.75
Broadcom AVGO 236.68 -7.69
BroadridgeFinl BR 107.14 -0.20
BrookfieldMgt BAM 38.77 -0.03
BrookfieldInfr BIP 41.05 0.10
Brown&Brown BRO 51.02 0.46
Brown-Forman B BF.B 53.82 0.47
Brown-Forman A BF.A 52.48 0.56
BuckeyePtrs BPL 37.97 0.25
Bunge
BG 73.06 0.45
s BurlingtonStrs BURL 130.49 0.48
CA
CA 33.48 0.05
CBD Pao
CBD 19.56 -0.24
CBRE Group CBRE 46.70 0.02
CBS A
CBS.A 51.96 -1.08
CBS B
CBS 51.88 -0.47
CDK Global CDK 62.74 -0.10
CDW
CDW 69.93 -0.28
CF Industries CF 36.49 -1.01
CGI Group GIB 56.70 -0.12
CH Robinson CHRW 91.69 0.13
CIT Group CIT 51.53 0.11
CME Group CME 158.84 -0.16
CMS Energy CMS 45.07 0.32
CNA Fin
CNA 49.83 0.68
CNOOC
CEO 147.15 -0.31
CPFLEnergia CPL 14.69 0.18
CRH
CRH 33.78 0.51
CSRA
CSRA 41.23
...
CSX
CSX 54.31 -0.39
CVS Health CVS 62.71 2.11
CabotOil
COG 23.72 -0.07
CadenceDesign CDNS 36.14 -0.26
CaesarsEnt CZR 10.90 -0.10
CamdenProperty CPT 84.06 2.53
CampbellSoup CPB 43.41 0.72
CIBC
CM 87.36 -0.29
CanNtlRlwy CNI 71.57 -0.10
CanNaturalRes CNQ 30.51 -0.15
CanPacRlwy CP 174.36 0.41
Canon
CAJ 36.28 0.38
CapitalOne COF 94.27 0.65
CardinalHealth CAH 62.56 1.34
Carlisle
CSL 103.23 -0.11
Carlyle
CG 21.00 -0.30
CarMax
KMX 60.64 0.89
Carnival
CCL 64.64 -1.09
Carnival
CUK 64.69 -0.91
Caterpillar CAT 145.16 -1.83
Cavium
CAVM 79.44 -2.71
CboeGlobalMkts CBOE 111.91 -0.15
Celanese A CE 99.74 0.99
Celgene
CELG 88.41 2.60
Cemex
CX
6.52 -0.30
CenovusEnergy CVE 8.18 -0.01
Centene
CNC 100.35 -0.79
CenterPointEner CNP 26.95 -0.14
CentraisElBras EBR 6.31 -0.33
CenturyLink CTL 16.21 0.08
Cerner
CERN 58.64 0.99
t CharterComms CHTR 306.26 -3.96
CheckPoint CHKP 99.04 -0.06
Chemours CC 46.20 -0.42
CheniereEnergy LNG 52.30 -0.76
CheniereEnerPtrs CQP 28.51 0.30
CheniereEnHldgs CQH 27.48 -0.10
Chevron
CVX 112.10 -2.56
ChinaEastrnAir CEA 35.33 -1.68
t ChinaLifeIns LFC 13.92 0.09
ChinaLodging HTHT 125.80 2.66
ChinaMobile CHL 45.65 -0.10
ChinaPetrol SNP 85.72 -0.46
ChinaSoAirlines ZNH 50.29 -3.31
ChinaTelecom CHA 43.67 1.22
ChinaUnicom CHU 12.54 0.03
Chipotle
CMG 319.51 -3.45
Chubb
CB 138.26 2.27
s ChunghwaTel CHT 38.50 0.35
Church&Dwight CHD 49.24 1.08
Cigna
CI 168.32 2.78
CimarexEnergy XEC 92.75 -0.88
CincinnatiFin CINF 73.86 0.73
Cintas
CTAS 169.05 -0.54
CiscoSystems CSCO 41.66 -1.02
Citigroup
C
68.26 -0.02
CitizensFin CFG 41.55 -0.04
CitrixSystems CTXS 91.70 -0.76
Clorox
CLX 130.31 3.93
Coca-Cola KO 43.32 0.43
Coca-Cola Euro CCE 41.43 0.88
Coca-Cola Femsa KOF 65.59 0.80
Cognex
CGNX 50.77 -2.56
CognizantTech CTSH 79.67 -0.41
ColgatePalm CL 70.80 1.52
Comcast A CMCSA 33.28 0.29
Comerica
CMA 94.27 -0.16
CommerceBcshrs CBSH 59.21 0.49
CommScope COMM 38.65 -0.74
A B C
ABB
ABB 23.56 0.31
ADT
ADT 7.60 0.04
AES
AES 11.23 0.28
Aflac
AFL 43.55 0.07
AGNC Invt AGNC 18.81 0.01
ANGI Homesvcs ANGI 13.53 0.01
Ansys
ANSS 154.87 -2.18
ASML
ASML194.53 -5.76
AT&T
T
35.56 0.66
AbbottLabs ABT 59.23 -1.05
AbbVie
ABBV 94.27 2.26
Abiomed
ABMD 282.99 -3.44
Accenture ACN 147.41 -1.45
ActivisionBliz ATVI 65.97 0.02
AcuityBrands AYI 137.01 1.06
AdobeSystems ADBE 212.54 -1.26
AdvanceAuto AAP 115.98 0.97
AdvMicroDevices AMD 9.81 -0.19
AdvSemiEngg ASX 7.30 0.11
Aegon
AEG 6.76 0.11
AerCap
AER 50.17 0.21
Aetna
AET 169.43 1.07
AffiliatedMgrs AMG 185.00 -0.23
AgilentTechs A
66.40 -0.60
AgnicoEagle AEM 41.42 -0.49
AirProducts APD 158.18 -0.45
AkamaiTech AKAM 70.05 -0.70
AlaskaAir ALK 61.57 0.08
t Albemarle ALB 89.56 -3.87
Alcoa
AA 44.42 -0.48
AlexandriaRlEst ARE 123.56 2.48
AlexionPharm ALXN 110.61 2.28
Alibaba
BABA 178.91 -2.98
AlignTech ALGN 244.42 -3.88
Alkermes ALKS 59.23 0.18
Alleghany Y
604.96 14.15
Allegion
ALLE 83.13 -0.87
Allergan
AGN 165.65 5.33
AllianceData ADS 221.90 2.78
AlliantEnergy LNT 40.62 0.09
Allstate
ALL 94.61 1.22
AllyFinancial ALLY 26.59 0.37
AlnylamPharm ALNY 129.87 -1.31
Alphabet C GOOG 1004.56 -0.54
Alphabet A GOOGL 1005.18 -1.76
Altaba
AABA 72.64 -0.39
AlticeUSA ATUS 18.19 0.27
Altria
MO 62.45 1.73
AlumofChina ACH 13.44 0.07
Amazon.com AMZN1431.42-65.63
Ambev
ABEV 7.11 0.03
Amdocs
DOX 66.19 0.51
Amerco
UHAL 342.78 1.21
Ameren
AEE 55.94 0.06
AmericaMovil AMX 18.84 -0.26
AmericaMovil A AMOV 18.83 -0.26
AmerAirlines AAL 50.85 -0.05
AEP
AEP 68.66 0.23
AmerExpress AXP 92.21 0.79
AmericanFin AFG 112.19 1.83
AIG
AIG 54.52 0.74
AmerTowerREIT AMT 144.30 -0.16
AmerWaterWorks AWK 81.19 0.50
Ameriprise AMP 146.96 -0.35
AmerisourceBrgn ABC 85.11 1.10
Ametek
AME 74.95 -0.12
Amgen
AMGN 170.46 -0.69
Amphenol APH 84.85 -0.74
AnadarkoPetrol APC 58.90 -1.90
AnalogDevices ADI 89.91 -1.14
Andeavor ANDV 99.03 -2.49
AndeavorLog ANDX 43.66 0.50
AB InBev BUD 109.63 2.16
AnnalyCap NLY 10.31 0.01
AnteroResources AR 19.21 -0.01
Anthem
ANTM 221.48 2.04
Aon
AON 139.46 0.64
Apache
APA 37.35 -0.13
ApartmtInv AIV 40.58 1.03
ApolloGlbMgmt APO 29.62 -0.61
Apple
AAPL 166.48 -1.86
ApplMaterials AMAT 54.06 -1.38
Aptiv
APTV 82.82 -1.51
AquaAmerica WTR 33.59 0.25
Aramark
ARMK 39.68 0.08
ArcelorMittal MT 30.36 -0.28
ArchCapital ACGL 85.80 1.33
ArcherDaniels ADM 42.80 -0.07
Arconic
ARNC 22.70 -0.35
AristaNetworks ANET 245.14 -8.56
ArrowElec ARW 75.73 -0.04
AspenTech AZPN 77.54 -1.21
AstraZeneca AZN 35.13 0.46
AthenaHealth ATHN 140.76 -0.16
Athene
ATH 47.55 -0.69
Atlassian
TEAM 52.16 -1.85
AtmosEnergy ATO 83.70 0.57
Autodesk ADSK 124.55 -3.76
Autohome ATHM 83.35 -1.05
Autoliv
ALV 142.12 -5.46
ADP
ADP 111.76 -0.50
AutoZone AZO 637.25 2.73
Avalonbay AVB 164.05 4.88
Avangrid
AGR 50.75 0.20
AveryDennison AVY 104.05 -0.40
AxaltaCoating AXTA 30.16 -0.46
BB&T
BBT 51.53 -0.05
BCE
BCE 42.75 0.22
BHPBilliton BHP 43.49 -0.61
BHPBilliton BBL 38.79 -0.45
BOK Fin
BOKF 98.12 0.45
BP
BP 39.60 -0.37
t BRF
BRFS 6.70 -0.24
BT Group BT 15.99 0.26
BWX Tech BWXT 64.50 -1.05
Baidu
BIDU 223.10 -7.86
BakerHughes BHGE 28.07 -1.13
Ball
BLL 39.19
...
BancoBilbaoViz BBVA 7.78 0.12
BancodeChile BCH 98.99 1.75
BancoMacro BMA 106.94 -1.08
BcoSantChile BSAC 32.94 0.47
BcoSantMex BSMX 7.12 0.01
BancoSantander SAN 6.47 0.03
BanColombia CIB 41.59 -0.35
BankofAmerica BAC 29.39 -0.13
Mutual Funds
Net
Sym Close Chg
Stock
SABESP
SBS 10.32 -0.25
ConagraBrands CAG 36.32 0.02
ConchoRscs CXO 143.25-13.75
ConocoPhillips COP 58.73 -0.41
ConEd
ED 77.56 -0.06
ConstBrands A STZ 220.49 2.02
ContinentalRscs CLR 57.31 0.05
Cooper
COO 225.15 0.06
Copart
CPRT 49.83 -0.16
Corning
GLW 27.35 -0.39
CoStar
CSGP 356.03 -3.96
Costco
COST 183.61 0.46
Coty
COTY 18.25 -0.04
Credicorp
BAP 224.65 2.97
CreditAcceptance CACC 324.61 -4.15
CreditSuisse CS 16.58 0.03
CrownCastle CCI 110.88 0.21
CrownHoldings CCK 50.15 0.03
Ctrip.com CTRP 46.17 -0.13
Cullen/Frost CFR 104.69 1.43
Cummins
CMI 159.67 0.92
CurtissWright CW 131.53 -2.79
CypressSemi CY 16.62 -0.42
D E F
DISH Network DISH 37.44
DTE Energy DTE 104.00
DXC Tech DXC 100.60
Danaher
DHR 96.52
Darden
DRI 84.38
DaVita
DVA 66.00
Deere
DE 151.48
DellTechs DVMT 72.10
DeltaAir
DAL 53.93
DentsplySirona XRAY 49.95
t DeutscheBank DB 13.76
DevonEnergy DVN 31.20
DexCom
DXCM 73.28
Diageo
DEO 135.11
DiamondbkEner FANG 124.67
DigitalRealty DLR 105.04
DiscoverFinSvcs DFS 70.28
DiscovComm C DISCK 19.27
DiscovComm A DISCA 21.17
Disney
DIS 98.54
DolbyLab
DLB 62.75
DollarGeneral DG 92.94
DollarTree DLTR 93.91
t DominionEner D
67.79
Domino's
DPZ 233.87
Donaldson DCI 43.71
DouglasEmmett DEI 36.78
Dover
DOV 96.21
t DowDuPont DWDP 62.41
DrPepperSnap DPS 118.36
DropBox
DBX 30.98
DukeEnergy DUK 77.42
DukeRealty DRE 26.27
ENI
E
34.82
EOG Rscs EOG 103.82
EPAM Systems EPAM 111.53
EQT
EQT 46.59
E*TRADE ETFC 53.60
EastWestBncp EWBC 61.82
EastmanChem EMN 104.18
Eaton
ETN 79.05
EatonVance EV 54.50
eBay
EBAY 40.11
Ecolab
ECL 135.31
Ecopetrol
EC 18.67
EdisonInt
EIX 63.07
EdwardsLife EW 136.77
ElectronicArts EA 119.33
EmersonElec EMR 67.30
EnbridgeEnPtrs EEP 9.36
Enbridge
ENB 30.36
Encana
ECA 10.52
EnelAmericas ENIA 11.38
EnelChile
ENIC 6.36
EnelGenChile EOCC 24.47
s Energen
EGN 60.78
EnergyTransferEq ETE 14.25
EnergyTransfer ETP 16.09
Entergy
ETR 79.00
EnterpriseProd EPD 24.06
Equifax
EFX 119.04
Equinix
EQIX 417.02
EquityLife ELS 87.21
EquityResdntl EQR 61.55
Ericsson
ERIC 6.36
EssexProp ESS 239.63
EsteeLauder EL 146.03
EverestRe RE 258.33
EversourceEner ES 58.47
Exelixis
EXEL 22.36
Exelon
EXC 38.54
Expedia
EXPE 106.32
ExpeditorsIntl EXPD 61.62
ExpressScripts ESRX 69.73
ExtraSpaceSt EXR 87.36
ExxonMobil XOM 72.81
F5Networks FFIV 142.61
FMC
FMC 73.11
Facebook
FB 153.03
FactSet
FDS 198.44
Fastenal
FAST 53.18
FederalRealty FRT 116.66
FedEx
FDX 234.80
Ferrari
RACE 119.62
FiatChrysler FCAU 19.94
FibriaCelulose FBR 19.25
FidNatlFin FNF 39.81
FidNatlInfo FIS 95.32
FifthThirdBncp FITB 31.56
58.com
WUBA 77.60
FirstAmerFin FAF 58.11
FirstData
FDC 15.83
FirstHorizonNatl FHN 18.62
FirstRepBank FRC 91.51
FirstSolar FSLR 69.32
FirstEnergy FE 34.39
Fiserv
FISV 70.74
FleetCorTech FLT 196.63
Flex
FLEX 16.31
FlirSystems FLIR 49.17
Fluor
FLR 55.85
FomentoEconMex FMX 90.44
FordMotor F
10.86
Fortinet
FTNT 52.28
GGP
GGP 20.55
Gallagher AJG 68.20
Gaming&Leisure GLPI 33.67
Gap
GPS 30.90
GardnerDenver GDI 30.05
Garmin
GRMN 58.21
Gartner
IT 116.81
Gazit-Globe GZT 9.60
GeneralDynamics GD 217.28
GeneralElec GE 13.68
t GeneralMills GIS 44.35
GeneralMotors GM 35.47
Genpact
G
31.59
Gentex
GNTX 22.60
GenuineParts GPC 88.68
Gerdau
GGB 4.45
Gildan
GIL 28.60
GileadSciences GILD 74.78
GSK
GSK 39.38
GlobalPayments GPN 110.08
GoDaddy
GDDY 58.93
Goldcorp
GG 13.51
GoldmanSachs GS 249.37
Goodyear GT 26.36
Graco
GGG 44.59
Grainger
GWW 277.48
GreatPlainsEner GXP 31.33
Grifols
GRFS 21.02
GrubHub
GRUB 99.11
GpoAvalAcc AVAL 8.34
GpoFinGalicia GGAL 65.10
GrupoTelevisa TV 15.81
Guidewire GWRE 79.21
HCA Healthcare HCA 97.15
HCP
HCP 23.39
HDFC Bank HDB 96.84
HD Supply HDS 37.47
HP
HPQ 21.69
HSBC
HSBC 47.73
Halliburton HAL 46.05
Hanesbrands HBI 18.38
HarleyDavidson HOG 42.68
Harris
HRS 159.78
HartfordFinl HIG 51.73
Hasbro
HAS 83.82
Heico A
HEI.A 70.75
Heico
HEI 86.98
Helm&Payne HP 64.58
HenrySchein HSIC 66.27
Herbalife
HLF 97.17
Hershey
HSY 98.25
Hess
HES 48.73
HewlettPackard HPE 17.66
Hexcel
HXL 64.16
Hilton
HLT 78.31
HollyFrontier HFC 47.56
Hologic
HOLX 37.39
HomeDepot HD 174.76
HondaMotor HMC 34.42
Honeywell HON 143.26
HormelFoods HRL 33.66
DR Horton DHI 43.28
HostHotels HST 18.57
HowardHughes HHC 136.34
HuanengPower HNP 26.61
Hubbell
HUBB 119.87
Humana
HUM 267.55
JBHunt
JBHT 114.92
HuntingtonBcshs HBAN 15.02
HuntingIngalls HII 253.18
Huntsman HUN 28.89
HyattHotels H
76.67
IAC/InterActive IAC 154.11
ICICI Bank IBN 8.71
IdexxLab
IDXX 188.79
IHSMarkit INFO 47.95
ING Groep ING 16.92
Invesco
IVZ 31.48
IPG Photonics IPGP 225.78
IQVIA
IQV 98.62
IRSA Prop IRCP 44.50
IcahnEnterprises IEP 57.17
Icon
ICLR 118.36
IDEX
IEX 140.52
IllinoisToolWks ITW 153.86
Illumina
ILMN 234.99
ImperialOil IMO 26.16
Incyte
INCY 84.96
Infosys
INFY 17.69
Ingersoll-Rand IR
83.95
Ingredion
INGR 127.15
Intel
INTC 49.60
InteractiveBrkrs IBKR 65.72
ICE
ICE 71.45
InterContinentl IHG 61.12
IBM
IBM 152.52
IntlFlavors IFF 135.06
IntlPaper
IP
52.38
Interpublic IPG 22.85
Intuit
INTU 170.93
IntuitiveSurgical ISRG 402.39
InvitatHomes INVH 22.67
IonisPharma IONS 45.93
IronMountain IRM 32.71
IsraelChemicals ICL
4.16
ItauUnibanco ITUB 15.22
0.19
0.19
-1.37
-0.57
0.16
0.66
-0.08
-1.58
-0.33
0.01
-0.01
-0.51
3.29
2.09
-4.51
2.33
0.05
-0.46
-0.51
-0.82
-0.83
0.51
0.28
-1.43
2.29
-0.36
0.95
-1.90
-1.23
0.08
1.08
0.32
0.24
-0.33
-2.51
-1.78
-0.86
-0.47
1.04
-0.82
-0.66
-0.06
-0.11
0.33
-0.40
0.52
-1.34
-0.65
-0.62
0.01
-0.08
-0.60
0.01
0.08
-2.01
2.48
0.05
0.03
-0.29
-0.17
2.62
7.14
1.90
2.20
...
7.54
-0.66
7.63
-0.12
-0.08
0.07
0.73
JD 40.01
-0.01 JD.com
-0.64 JPMorganChase JPM 108.00
1.81 JackHenry JKHY 119.54
-0.89 JacobsEngg JEC 56.87
-2.35 JamesHardie JHX 17.43
-2.01 JanusHenderson JHG 32.47
0.81 JazzPharma JAZZ 147.66
JBLU 20.17
-3.29 JetBlue
JNJ 127.45
0.33 J&J
JohnsonControls
JCI 34.29
3.18
0.16 JonesLang JLL 173.44
-0.08 t JuniperNetworks JNPR 24.05
-0.42 KAR Auction KAR 53.82
KB 56.43
-0.02 KB Fin
KKR 20.20
-0.85 KKR
0.64 KLA Tencor KLAC 106.57
KT 13.41
0.38 KT
-1.75 KSCitySouthern KSU 107.59
K
63.90
-0.12 Kellogg
KEY 19.27
0.04 KeyCorp
KeysightTechs
KEYS
51.23
0.27
1.11 KilroyRealty KRC 71.40
-2.19 KimberlyClark KMB 109.46
-0.14 KimcoRealty KIM 14.53
0.46 t KinderMorgan KMI 14.81
-1.98 Knight-Swift KNX 45.50
KSS 64.56
-0.35 Kohl's
-0.76 KoninklijkePhil PHG 38.01
0.09 KoreaElcPwr KEP 14.87
1.20 KraftHeinz KHC 61.37
KR 23.62
0.03 Kroger
KYO 56.17
-1.05 Kyocera
Fund
SrsGroCoRetail
SrsIntlGrw
SrsIntlVal
TotalBond
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each.
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.
Fund
American Century Inv
Ultra
43.99
American Funds Cl A
32.07
AmcpA p
39.31
AMutlA p
26.51
BalA p
12.61
BondA p
60.22
CapIBA p
50.61
CapWGrA
EupacA p
56.10
FdInvA p
60.90
50.22
GwthA p
10.18
HI TrA p
39.28
ICAA p
22.58
IncoA p
43.48
N PerA p
46.32
NEcoA p
NwWrldA
66.89
SmCpA p
55.91
12.80
TxExA p
44.28
WshA p
Baird Funds
10.62
AggBdInst
10.96
CorBdInst
BlackRock Funds A
GlblAlloc p
19.48
BlackRock Funds Inst
21.95
EqtyDivd
19.60
GlblAlloc
7.65
HiYldBd
StratIncOpptyIns 9.92
Bridge Builder Trust
CoreBond
-0.37
-0.27
-0.01
-0.04
-0.01
+0.24
-0.02
-0.10
-0.28
-0.52
-0.01
-0.05
+0.02
-0.30
-0.31
-0.44
-0.32
+0.01
-0.07
NA
...
NA IntlIdxPrem r
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
...
...
...
...
...
...
...
...
...
...
...
...
...
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
1.3 Dimensional Fds
1.8
-3.2
-2.0
-1.7
-3.4
-0.6
-0.2
-1.9
1.4
-0.5
-2.4
-2.7
0.7
3.8
...
0.2
-1.2
-2.6
+0.01 -1.7
... -1.7
-0.03 -1.1
... -3.6
-0.03 -1.1
... -0.6
... 0.4
5GlbFxdInc
EmgMktVa
EmMktCorEq
IntlCoreEq
IntlVal
IntSmCo
IntSmVa
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
102.87 -0.06
13.37 -0.03
13.49
...
45.02 +0.04
194.65 -0.23
DoubleLine Funds
NA
...
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 30.97 -0.20
Federated Instl
5.68 +0.03
StraValDivIS
Fidelity
91.47 -0.25
500IdxInst
500IdxInstPrem 91.47 -0.25
500IdxPrem 91.47 -0.25
ExtMktIdxPrem r 61.39 -0.08
-2.3
-3.5
-1.0
-2.8
-3.0
NA
4.8
-6.9
-2.1
-2.1
-2.1
-1.1
Net YTD
NAV Chg % Ret
42.44
SAIUSLgCpIndxFd 13.98
74.90
TMktIdxF r
TMktIdxPrem 74.89
USBdIdxInstPrem 11.32
Fidelity Advisor I
31.61
NwInsghtI
Fidelity Freedom
16.39
FF2020
FF2025
14.23
FF2030
17.83
Freedom2020 K 16.37
Freedom2025 K 14.21
Freedom2030 K 17.81
Freedom2035 K 15.02
Freedom2040 K 10.55
Fidelity Invest
23.54
Balanc
88.78
BluCh
Contra
122.13
ContraK
122.08
10.09
CpInc r
39.00
DivIntl
184.98
GroCo
184.99
GrowCoK
InvGB
7.75
11.00
InvGrBd
53.49
LowP r
104.17
MagIn
111.11
OTC
Puritn
23.10
SrsEmrgMkt 21.62
0.20
-0.15
0.03
-3.01
-0.27
-0.49
0.47
0.47
0.67
0.61
0.38
-0.35
0.07
-0.80
0.05
-3.79
0.24
-0.96
0.60
0.14
-0.04
0.08
-0.03
0.37
0.67
0.99
-1.04
-1.09
-0.26
2.11
-0.37
-0.01
4.45
0.19
0.71
-4.23
0.08
-0.31
-0.01
-0.76
-0.28
0.60
-0.16
0.04
-0.08
0.12
-0.83
-0.41
0.66
-0.57
0.62
-0.25
-1.10
-1.01
-1.90
1.19
0.80
0.46
-1.14
0.10
-0.41
-0.48
-1.42
-0.24
0.08
0.69
-1.08
0.09
-0.49
0.44
0.11
0.33
0.32
0.40
-0.04
0.09
-1.60
-0.17
-0.36
-2.96
0.01
-2.11
-0.65
0.27
0.12
-3.98
-1.44
0.22
0.39
-2.22
-0.99
-1.00
-2.38
-0.16
-0.07
-0.03
-1.05
-0.38
-1.59
-0.98
-0.35
0.17
0.61
-0.34
0.25
0.10
-2.32
-2.83
0.21
0.13
0.81
-0.04
0.17
J K L
Data provided by
Wednesday, March 28, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
33.68
76.65
58.30
67.01
34.11
16.75
50.48
G H I
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Wednesday, March 28, 2018
Net
Sym Close Chg
+0.24
-0.04
-0.19
-0.19
...
-1.7
-2.1
-1.9
-1.9
-1.7
-0.24
0.8
...
-0.01
-0.01
...
-0.01
-0.01
-0.01
...
-1.1
-1.2
-1.3
-1.1
-1.2
-1.2
-1.2
-1.3
-0.05
-0.88
-0.99
-0.99
-0.03
+0.08
-1.54
-1.54
...
...
+0.07
-0.70
-1.39
-0.09
-0.16
-0.8
1.2
1.3
1.3
-1.2
-2.5
3.5
3.6
-1.6
-1.6
-1.9
-0.4
1.1
-1.4
1.0
-0.70
-0.17
-0.18
0.64
-0.18
-0.17
1.15
0.22
0.24
-0.03
-0.87
-0.20
0.57
0.25
-0.17
-1.24
0.04
0.60
-0.48
...
-0.11
1.85
1.96
0.40
-0.28
-0.18
1.76
0.41
0.41
0.67
0.15
1.64
Net
Sym Close Chg
Stock
LATAMAirlines LTM 15.02
L Brands
LB 37.67
LG Display LPL 12.02
LINE
LN 38.16
LKQ
LKQ 37.50
L3 Tech
LLL 202.64
LabCpAm LH 161.53
LamResearch LRCX 196.21
LamarAdv LAMR 64.16
LambWeston LW 56.39
LasVegasSands LVS 70.78
Lazard
LAZ 51.53
Lear
LEA 180.66
Leggett&Platt LEG 43.90
Leidos
LDOS 64.26
Lennar A
LEN 58.76
Lennar B
LEN.B 47.45
LennoxIntl LII 200.73
LeucadiaNatl LUK 22.45
LibertyBroadbandA LBRDA 82.96
LibertyBroadbandC LBRDK 83.91
LibertyGlobal C LBTYK 30.81
LibertyGlobal A LBTYA 31.85
LibertyQVC A QRTEA 25.03
LibertyFormOne C FWONK 30.87
LibertyFormOne A FWONA 29.23
LibertyBraves A BATRA 22.70
LibertyBraves C BATRK 22.79
LibertySirius A LSXMA 40.83
LibertySirius C LSXMK 40.71
LibertyProperty LPT 39.74
EliLilly
LLY 77.01
LincolnElectric LECO 88.79
LincolnNational LNC 72.01
LiveNationEnt LYV 41.92
LloydsBanking LYG 3.72
LockheedMartin LMT 335.33
Loews
L
49.44
LogitechIntl LOGI 36.62
LogMeIn
LOGM 111.65
Lowe's
LOW 85.88
s lululemon LULU 85.96
LyondellBasell LYB 103.15
0.11
-0.44
0.34
0.20
-0.09
-1.88
-1.20
-6.41
0.88
0.39
-0.88
-0.24
-4.41
0.28
-0.24
0.09
-0.11
-1.09
0.30
-0.14
0.07
-0.55
-0.51
0.04
0.06
0.22
-0.46
-0.48
0.18
0.18
0.52
1.35
-0.26
0.05
-0.12
0.04
-3.52
0.34
0.20
-3.95
-0.08
7.25
-0.99
M N
M&T Bank MTB 180.59 0.26
MGM Resorts MGM 34.10 -0.76
MKS Instrum MKSI 111.35 -3.50
MPLX
MPLX 32.62 -0.33
MSCI
MSCI 150.55 -3.49
Macerich
MAC 56.91 1.41
Macy's
M
29.07 1.21
MadisonSquGarden MSG 242.52 -1.08
MagellanMid MMP 57.16 0.08
MagnaIntl MGA 54.41 -0.29
Manpower MAN 112.46 -0.56
ManulifeFin MFC 18.31 -0.04
MarathonOil MRO 15.32 -0.50
MarathonPetrol MPC 71.82 -1.06
Markel
MKL 1154.68 5.64
MarketAxess MKTX 212.98 -4.30
Marriott
MAR 133.90 -1.69
Marsh&McLen MMC 81.89 0.50
MartinMarietta MLM 201.79 -3.64
MarvellTech MRVL 20.52 -0.81
Masco
MAS 39.83 -0.64
Mastercard MA 170.35 -2.17
MatchGroup MTCH 43.16 -1.07
MaximIntProducts MXIM 58.95 -0.46
McCormick MKC105.95 -1.40
McCormickVtg MKC.V 105.82 -1.08
McDonalds MCD 158.41 0.93
McKesson MCK 140.66 1.91
Medtronic MDT 78.46 0.30
MelcoResorts MLCO 28.14 -0.57
MercadoLibre MELI 341.22-10.99
Merck
MRK 55.09 1.34
MetLife
MET 45.90 0.41
MettlerToledo MTD 571.90 -1.31
MichaelKors KORS 61.21 -0.30
MicroFocus MFGP 14.14 0.42
MicrochipTech MCHP 91.16 -3.24
MicronTech MU 51.49 -0.91
Microsemi MSCC 64.31 -1.20
Microsoft MSFT 89.39 -0.08
MidAmApt MAA 90.94 2.74
Middleby
MIDD 123.46 0.73
MitsubishiUFJ MTU 6.62 0.02
MizuhoFin MFG 3.67 0.01
MobileTeleSys MBT 11.27 0.17
MohawkInds MHK 228.89 0.99
MolsonCoors B TAP 75.41 1.18
Momo
MOMO 35.61 -0.41
Mondelez MDLZ 40.59 -0.10
Monsanto MON 116.75 -0.83
MonsterBev MNST 56.24 -0.01
Moody's
MCO 158.94 -0.60
MorganStanley MS 52.91 -0.24
Mosaic
MOS 23.57 -0.63
MotorolaSol MSI 103.96 -1.97
MuleSoft
MULE 43.70 -0.09
Mylan
MYL 40.50 0.97
NICE
NICE 91.72 -0.07
NRG Energy NRG 30.27 0.27
NTTDoCoMo DCM 25.35 -0.25
NVR
NVR 2977.89-50.24
NXP Semi NXPI116.26 -5.26
Nasdaq
NDAQ 83.49 1.57
NationalGrid NGG 56.69 2.04
NatlInstruments NATI 49.25 -0.47
NatlOilwell NOV 35.93 -0.99
NatlRetailProp NNN 38.98 1.04
NektarTherap NKTR 105.01 0.50
NetApp
NTAP 59.47 -1.72
Netease
NTES 274.54 -6.22
Netflix
NFLX 285.77-14.92
Neurocrine NBIX 82.83 1.55
NewOrientalEduc EDU 86.25 -1.48
NewResidInvt NRZ 16.65 -0.12
NY CmntyBcp NYCB 12.95 0.08
NewellBrands NWL 25.28 0.09
NewmontMin NEM 38.39 -0.64
NewsCorp B NWS 15.80 -0.15
NewsCorp A NWSA 15.43 -0.15
NextEraEnergy NEE 162.27 -0.32
Nike
NKE 65.44 -0.73
NiSource
NI
23.72 -0.07
NobleEnergy NBL 29.36 -0.85
Nokia
NOK 5.43 -0.01
NomuraHoldings NMR 5.77 0.04
Nordson
NDSN 134.00 -0.65
Nordstrom JWN 47.90 0.53
NorfolkSouthern NSC 133.97 0.38
NorthernTrust NTRS 101.13 -0.45
NorthropGrum NOC 344.71 -4.58
NorwegCruise NCLH 52.48 -0.39
Novartis
NVS 81.25 1.80
NovoNordisk NVO 49.12 0.56
Nucor
NUE 59.32 -0.53
Nutanix
NTNX 47.94 0.58
Nutrien
NTR 45.81 -1.00
NVIDIA
NVDA 221.35 -4.17
O P Q
OGE Energy OGE 32.33
ONEOK
OKE 55.63
OReillyAuto ORLY 242.72
OccidentalPetrol OXY 63.15
OldDomFreight ODFL 142.11
OldRepublic ORI 21.41
Net YTD
NAV Chg % Ret Fund
17.28 -0.14
15.99 +0.01
10.47 +0.05
10.43
...
First Eagle Funds
57.91 +0.04
GlbA
FPA Funds
34.15 -0.08
FPACres
FrankTemp/Frank Adv
2.25
...
IncomeAdv
FrankTemp/Franklin A
7.30
...
CA TF A p
2.27
...
IncomeA p
RisDv A p
58.66 -0.24
FrankTemp/Franklin C
Income C t
2.30
...
FrankTemp/Temp A
GlBond A p
11.96 +0.11
Growth A p
26.34 +0.02
FrankTemp/Temp Adv
GlBondAdv p 11.91 +0.11
Harbor Funds
71.04 -0.95
CapApInst
IntlInst r
66.45 +0.37
Harding Loevner
IntlEq
NA
...
Invesco Funds A
10.60 -0.02
EqIncA
John Hancock Class 1
15.03 -0.01
LSBalncd
15.91 -0.02
LSGwth
John Hancock Instl
22.93
...
DispValMCI
JPMorgan Funds
39.14 +0.20
MdCpVal L
JPMorgan R Class
11.36
...
CoreBond
Lazard Instl
20.13 -0.16
EmgMktEq
Lord Abbett A
ShtDurIncmA p 4.20 -0.01
Lord Abbett F
4.20
...
ShtDurIncm
Metropolitan West
10.44
...
TotRetBd
3.9
-1.0
-2.1
-1.4
-1.9
-1.6
-3.4
-1.7
-3.4
-4.1
-3.5
1.3
-3.4
1.3
2.3
-1.6
NA
-2.9
-1.1
-1.1
-1.6
-2.8
-1.3
0.5
-0.3
-0.3
-1.6
TotRetBdI
TRBdPlan
0.07
-1.33
3.75
-2.67
-0.64
0.30
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
RELX 20.75 0.19 SmithAO
AOS 62.52 0.04 ThermoFisherSci TMO 205.92 -0.70 VirtuFinancial VIRT 32.53 -1.18
-0.08 RELX
RPM 47.41 0.11 Smith&Nephew SNN 38.45 0.38 t ThomsonReuters TRI 38.53
... s VistraEnergy VST 21.13 0.27
-1.15 RPM
SJM 123.30 0.89 ThorIndustries THO 112.39 0.22 VMware
VMW 119.95 -3.42
-0.02 s RSP Permian RSPP 45.00 6.08 Smucker
MMM 216.54 0.67 Vodafone VOD 27.67 0.08
SNAP 15.95 -0.25 3M
-0.40 RalphLauren RL 110.04 0.95 Snap
TIF 98.03 1.49 VornadoRealty VNO 67.52 1.56
SNA 147.22 0.84 Tiffany
0.13 RandgoldRscs GOLD 82.32 -1.34 SnapOn
... VoyaFinancial VOYA 50.07 0.18
-0.09 RaymondJames RJF 87.76 0.11 SOQUIMICH SQM 46.90 -0.55 TimeWarner TWX 94.20
TOL 42.67 -0.73 t VulcanMatls VMC 111.30 -3.43
RTN 211.06 -4.05 Sony
SNE 48.08 0.21 Toll Bros
0.22 Raytheon
51.76 1.44 Southern
-0.81 RealtyIncome O
SO 44.64 0.11 Torchmark TMK 83.70 0.53
TTC 60.46 0.04
RHT 146.20 -8.22 SoCopper SCCO 52.43 -0.95 Toro
1.13 RedHat
-0.70 RegencyCtrs REG 59.02 1.93 SouthwestAir LUV 56.25 -0.44 TorontoDomBk TD 56.10 -0.17
WABCO
WBC 132.61 0.58
TOT 56.20 -0.36
0.87 RegenPharm REGN 338.48 9.24 SpectraEnerPtrs SEP 32.94 0.33 Total
WEC Energy WEC 62.28 -0.02
0.27 RegionsFin RF 18.28 -0.01 SpiritAeroSys SPR 82.57 -0.80 TotalSystem TSS 84.85 -0.74
WEX
WEX 152.57 -0.33
RGA 154.77 1.27 Splunk
SPLK 95.94 -3.85 ToyotaMotor TM 129.37 1.33
-0.49 ReinsGrp
W.P.Carey WPC 62.16 1.31
S
4.86 -0.03 TractorSupply TSCO 60.00 0.56
-1.94 RelianceSteel RS 83.13 -1.13 t Sprint
WPP
WPP 79.72 1.17
0.27 RepublicSvcs RSG 65.85 -0.09 Square
SQ 47.39 -3.67 t TransCanada TRP 40.25 0.04
Wabtec
WAB 80.03 -0.68
RMD 96.25 -1.03 StanleyBlackDck SWK 150.84 -1.56 TransDigm TDG 300.79 -4.35
-1.75 ResMed
WalgreensBoots WBA 67.59 1.63
0.86 RestaurantBrands QSR 55.61 -0.96 Starbucks SBUX 57.90 0.44 TransUnion TRU 56.52 -0.65
Walmart
WMT 87.77 1.72
TRV 138.79 2.04
RIO 50.20 -0.49 StateStreet STT 98.28 -0.68 Travelers
0.62 RioTinto
TRMB 34.77 -0.20 WasteConnections WCN 71.18 0.04
-1.14 RobertHalf RHI 56.83 0.42 Statoil
STO 23.27 -0.32 Trimble
ROK 174.70 1.49 SteelDynamics STLD 42.70 -0.14 TurkcellIletism TKC 9.15 -0.15 WasteMgt WM 83.18 -0.11
0.39 Rockwell
Waters
WAT 198.57 -1.95
-0.36 RockwellCollins COL 135.30 -0.67 STMicroelec STM 22.15 -0.70 TurquoiseHill TRQ 3.02 -0.23
Watsco
WSO 176.09 0.63
RogersComm
B
RCI
44.27 0.31 Stryker
-2.54
SYK 157.97 -0.10 21stCenturyFoxA FOXA 35.88 -0.60
W 65.14 -1.40
ROL 50.47 0.05 SumitomoMits SMFG 8.47 -0.06 21stCenturyFoxB FOX 35.50 -0.58 Wayfair
-2.21 Rollins
Weibo
WB
115.09 -3.14
TWTR 28.45 0.38
0.40 RoperTech ROP 276.49 -0.92 SunComms SUI 91.05 1.20 Twitter
TYL 206.27 -2.81 WellCareHealth WCG 190.27 -0.18
0.76 RossStores ROST 76.16 -0.76 SunLifeFinancial SLF 40.59 -0.23 TylerTech
WellsFargo
WFC
51.48 0.38
-2.44 RoyalBkCanada RY 76.32 -0.34 SuncorEnergy SU 33.93 -0.50 TysonFoods TSN 72.93 -1.10
Welltower WELL 54.86 1.58
-1.25 RoyalBkScotland RBS 7.36 0.06 SunTrustBanks STI 66.56 -0.13 UBS Group UBS 17.59 0.12
UDR 35.60 0.90 WestPharmSvcs WST 86.50 0.23
-0.10 RoyalCaribbean RCL 116.53 -1.77 Symantec SYMC 25.64 0.13 UDR
UGI 44.18 0.57 WestarEnergy WR 51.94 0.25
-0.29 RoyalDutchA RDS.A 63.08 -0.99 SynchronyFin SYF 33.11 0.44 UGI
WestAllianceBcp WAL 57.36 0.49
RoyalDutchB
RDS.B
64.80
-0.84
-0.39
Synopsys SNPS 82.30 -0.59 US Foods USFD 32.94 -0.35
RYAAY 120.87 -1.40 SynovusFin SNV 49.36 0.73 USG
USG 40.38 0.31 WesternDigital WDC 90.80 -0.88
0.17 Ryanair
t
WesternGasEquity WGP 32.50 -0.40
SAP 103.98 0.95 Sysco
1.54 SAP
SYY 59.37 0.01 UltaBeauty ULTA 205.11 0.19
UltSoftware ULTI 237.64 -1.97 WesternGasPtrs WES 41.52 0.02
-0.65 S&P Global SPGI 187.28 -0.59
t UltraparPart UGP 21.01 0.23 WesternUnion WU 19.22 0.33
0.67 SBA Comm SBAC 170.46 0.36
UnderArmour A UAA 16.33 -0.11 WestlakeChem WLK 108.01 -5.33
0.89 SEI Investments SEIC 72.96 -0.43
TAL Education TAL 36.88 -0.21 UnderArmour C UA 14.19 -0.13 WestpacBanking WBK 21.97 0.05
Sina
SINA
99.73
-4.58
-0.20
TD
Ameritrade
AMTD
57.23
-0.23
SHI 61.15 0.89
Unilever
UN 55.81 1.99 WestRock WRK 63.16 -0.29
-0.18 SINOPEC
TE Connectivity TEL 96.34 -1.46 Unilever
UL 55.10 2.11 Weyerhaeuser WY 35.02 0.12
0.29 SK Telecom SKM 23.75 0.49
Telus
TU 34.80 0.22 UnionPacific UNP 130.76 -0.54 WheatonPrecMet WPM 20.07 -0.23
3.06 SLGreenRealty SLG 97.99 3.03
Ternium
TX
31.41
-0.43
UnitedContinental UAL 67.91 -0.27 t Whirlpool WHR 151.17 -1.63
-1.38 SS&C Tech SSNC 51.54 -0.76
WMB 24.78 -0.37
TSU 20.94 -0.28 UnitedMicro UMC 2.59 0.02 Williams
SIVB 235.81 -3.40 TIM Part
0.04 SVB Fin
TJX 80.69 0.25 UPS B
SABR 21.27 -0.14 TJX
UPS 102.68 0.51 WilliamsPartners WPZ 34.44 -0.29
-0.18 Sabre
WillisTowers
WLTW 151.29 0.51
T-MobileUS
TMUS
60.87
0.53
UnitedRentals URI 169.11 -8.04
0.10 SageTherap SAGE 158.81 4.26
WIT 5.12
...
TRowePrice TROW 105.79 -0.31 US Bancorp USB 50.07 0.51 Wipro
-4.07 Salesforce.com CRM 112.88 -0.93
SNY 39.96 0.62 TableauSftwr DATA 79.20 -2.30 US Steel
X
33.54 -0.13 WooriBank WF 40.83 -0.41
... Sanofi
WDAY 123.77 -2.67
TaiwanSemi TSM 42.69 -0.60 UnitedTech UTX 124.45 -0.83 Workday
SantanderCons
SC
16.04
0.13
-0.17
SSL 33.02 -0.39 TakeTwoSoftware TTWO 97.46 -0.58 UnitedHealth UNH 218.50 0.54 Worldpay WP 80.44 -1.22
-0.08 Sasol
TPR 52.51 -0.60 UniversalHealthB UHS 121.38 0.94 Wyndham WYN 112.79 -0.14
Schlumberger SLB 63.21 -1.27 Tapestry
0.26
SchwabC
SCHW 50.90 -0.63 TargaResources TRGP 43.74 -1.72 UnumGroup UNM 47.29 -0.18 WynnResorts WYNN 176.04 -1.69
-1.95
TGT 69.18 0.67 VEREIT
Seagate
STX 56.89 -0.48 Target
VER 6.93 0.23 XPO Logistics XPO 98.23 -0.43
0.61
SealedAir SEE 42.22 0.05 TataMotors TTM 25.42 -0.21 VF
VFC 73.67 -0.06 XcelEnergy XEL 45.34 0.23
1.05
XRX 28.85 0.10
SeattleGenetics SGEN 51.68 0.48 TechnipFMC FTI 28.69 -0.31 VICI Prop VICI 18.27 -0.05 Xerox
0.15
XLNX 71.35 -0.73
SemicondctrMfg SMI 6.44 -0.10 TeckRscsB TECK 24.58 -0.70 Visa
V
116.99 -0.41 Xilinx
0.49
XYL 75.81 -0.51
SempraEnergy SRE 110.33 -0.85 TelecomArgentina TEO 31.09 -0.01 VailResorts MTN 223.73 0.90 Xylem
0.24
YPF 21.41 -0.10
9.57 0.18 Vale
ServiceCorp SCI 37.57 0.14 TelecomItalia TI
VALE 12.45 0.22 YPF
0.34
YY 101.27 -1.97
ServiceMaster SERV 50.31 -0.29 TelecomItalia A TI.A 8.26 0.17 ValeroEnergy VLO 90.28 -1.99 YY
0.54
YNDX 39.25 -0.48
ServiceNow NOW 159.68 -3.14 TeledyneTech TDY 183.59 -2.45 VarianMed VAR 121.53 -0.31 Yandex
0.04
TFX 253.10 -4.55 Vedanta
ShawComm B SJR 19.23 0.32 Teleflex
VEDL 17.23 -0.33 YumBrands YUM 84.25 0.37
4.02
SherwinWilliams SHW 385.25 -5.47 TelefonicaBras VIV 14.83 -0.30 VeevaSystems VEEV 71.47 -1.34 YumChina YUMC 40.72 -0.04
-0.15
ShinhanFin SHG 42.07 0.12 Telefonica TEF 9.78 0.13 Ventas
VTR 50.46 1.45 ZTO Express ZTO 14.64 -0.07
-0.04
Shire
SHPG 144.53 15.66 t TelekmIndonesia TLK 26.24 0.11 VeriSign
VRSN 116.40 -1.08 ZayoGroup ZAYO 33.44 -0.11
-1.69
Tenaris
TS
33.56
-0.53
Shopify
SHOP 121.60 -7.22
VeriskAnalytics VRSK 101.76 0.10 ZebraTech ZBRA 135.95 0.49
-0.14
TER 44.83 -0.93 Verizon
ZG 53.41 -0.43
VZ 48.00 0.69 Zillow A
SignatureBank SBNY 141.16 -0.59 Teradyne
-0.44
TSLA 257.78-21.40 VertxPharm VRTX 159.58 -0.76 Zillow C
Z
53.47 -0.23
SimonProperty SPG 155.91 5.45 t Tesla
SiriusXM
SIRI 6.18 -0.03 TevaPharm TEVA 17.04 0.36 Viacom A VIA 38.90
... ZimmerBiomet ZBH 108.16 -0.08
SkechersUSA SKX 38.36 -0.14 TexasInstruments TXN 101.91 -0.65 Viacom B VIAB 30.48 -0.25 ZionsBancorp ZION 52.17 0.15
RENX 20.66 0.22 Skyworks SWKS 98.87 -2.65 Textron
ZTS 81.00 -0.86
TXT 57.60 0.15 Vipshop
VIPS 16.20 -0.63 Zoetis
Omnicom OMC 72.64
ON Semi
ON 23.81
OpenText OTEX 34.04
Oracle
ORCL 44.98
Orange
ORAN 16.99
OrbitalATK OA 132.52
Orix
IX
88.44
Oshkosh
OSK 76.24
OwensCorning OC 81.60
PG&E
PCG 43.24
PLDT
PHI 28.05
PNC Fin
PNC 149.45
POSCO
PKX 77.31
PPG Ind
PPG 109.97
PPL
PPL 28.17
PTC
PTC 77.04
PVH
PVH 144.02
Paccar
PCAR 64.50
PackagingCpAm PKG 111.18
PacWestBancorp PACW 48.91
PagSeguroDig PAGS 37.10
PaloAltoNtwks PANW 176.90
ParkerHannifin PH 168.15
ParsleyEnergy PE 27.34
Paychex
PAYX 60.60
PaycomSoftware PAYC 105.18
PayPal
PYPL 75.06
Pearson
PSO 10.53
PembinaPipeline PBA 30.59
Pentair
PNR 67.89
People'sUtdFin PBCT 18.46
PepsiCo
PEP 109.18
PerkinElmer PKI 74.87
Perrigo
PRGO 82.60
PetroChina PTR 69.84
PetroleoBrasil PBR 13.76
PetroleoBrasilA PBR.A 12.70
Pfizer
PFE 35.30
PhilipMorris PM 99.79
Phillips66 PSX 94.33
PilgrimPride PPC 24.90
PinnacleFoods PF 53.79
PinnacleWest PNW 79.47
PioneerNatRscs PXD 167.52
PlainsAllAmPipe PAA 21.61
PlainsGP
PAGP 21.42
PolarisIndustries PII 112.70
Pool
POOL 143.76
Praxair
PX 142.16
PrincipalFin PFG 59.40
Procter&Gamble PG 78.84
Progressive PGR 60.44
Prologis
PLD 62.53
Proofpoint PFPT 112.30
PrudentialFin PRU 102.90
Prudential PUK 51.65
PublicServiceEnt PEG 49.36
PublicStorage PSA 202.12
PulteGroup PHM 29.08
Qiagen
QGEN 32.16
Qorvo
QRVO 68.54
Qualcomm QCOM 54.70
QuestDiag DGX 99.51
W X Y Z
T U V
R S
RELX
New Highs and Lows | WSJ.com/newhighs
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.
Wednesday, March 28, 2018
52-Wk %
Sym Hi/Lo Chg Stock
Stock
Highs
AddusHomeCare ADUS
AssurantPfdD AIZP
BisonCapAcqn BCAC
BisonCapAcqn BCACU
BurlingtonStrs BURL
ChunghwaTel CHT
ConvergeOneWt CVONW
Crocs
CROX
DSW
DSW
DriveShackPfdC DSpC
DynegyUn
DYNC
Dynegy
DYN
EducDev
EDUC
Energen
EGN
Ever-Glory
EVK
FRONTEO
FTEO
1stConstBncp FCCY
GDL Fd PfdC GDLpC
HailiangEduc
HLG
Independence IHC
InfuSystems
INFU
Joint
JYNT
LeisureAcqnWt LACQW
lululemon
LULU
MarroneBioInnova MBII
MudrickCapWt MUDSW
Napco Security NSSC
Neogen
NEOG
OpesAcquisition OPES
Pfenex
PFNX
PlayAGS
AGS
QuorumHealth QHC
RSP Permian RSPP
RayonierAdvMatls RYAM
RayonierAdvPfdA RYAMpA
ShotSpotter
SSTI
SotherlyHotels SOHO
SoundFinBancorp SFBC
TheStreet
TST
TriStateCapPfA TSCAP
UtdCmntyBcp UCBA
UsanaHealth USNA
UtahMedProducts UTMD
VistraEnergy VST
Walker&Dunlop WD
WillisLease
WLFC
48.35 0.7
105.00 1.1
9.99 0.1
10.81 1.8
133.16 0.4
38.59 0.9
1.22 ...
16.36 0.9
22.77 1.0
26.08 4.9
88.04 1.2
13.92 1.3
27.93 4.9
61.96 4.3
3.90 14.9
15.41 0.2
22.53 4.9
50.80 ...
77.18 -1.8
35.75 3.0
2.80 8.5
6.87 7.8
0.75 15.4
87.98 9.2
2.42 -10.3
1.50 1.6
11.50 5.1
67.46 1.6
9.79 0.4
6.59 4.8
22.63 2.6
9.43 12.5
47.17 15.6
22.07 1.1
152.65 0.9
28.73 -1.6
7.02 3.7
36.50 1.4
1.94 17.0
25.99 -0.2
25.65 -0.8
86.00 1.7
99.70 1.8
21.44 1.3
59.68 6.2
33.63 3.9
Lows
ACADIA Pharm
A10Networks
Adecoagro
Adtran
ACAD
ATEN
AGRO
ADTN
22.28
5.64
7.24
15.15
1.9
-0.9
-1.5
0.3
52-Wk %
Sym Hi/Lo Chg Stock
AdvEnergyInds AEIS
Advaxis
ADXS
AkariTherap
AKTX
Albemarle
ALB
AlimeraSciences ALIM
AllianceMMA AMMA
Allstate PfdC ALLpC
Altimmune
ALT
AmHomes4RentPfdE AMHpE
Ampco-Pitt
AP
AnadarkoPeteUn AEUA
AnteroMidstream AMGP
AnteroMidstream AM
AntheraPharm ANTH
AnworthMtgPfdA ANHpC
ApolloInv
AINV
ApricusBiosci APRI
ArgosTherap
ARGS
AscentCapital A ASCMA
AsteriasBiotherap AST
AutoWeb
AUTO
AxovantSciences AXON
AxsomeTherap AXSM
B&G Foods
BGS
BRF
BRFS
BigLots
BIG
Birks
BGI
BlueApron
APRN
BlueknightEner BKEP
BoardwalkPipe BWP
BrighthouseFin BHF
BroadwindEnergy BWEN
BurconNutraSci BUR
CDTI AdvMat CDTI
CHF Solutions CHFS
CedarRealtyPfB CDRpB
CellectBiotech APOP
CescaTherap
KOOL
CharterComms CHTR
ChinaLifeIns
LFC
CidaraTherap CDTX
CirrusLogic
CRUS
Coherent
COHR
CompassPfd
CODIpB
ConsldComm CNSL
CorMedix
CRMD
CorpAmAirports CAAP
CyclacelPharm CYCC
DDR PfdJ
DDRpJ
DDR PfdK
DDRpK
61.47 -1.1
1.69 -2.8
1.70 -2.7
89.28 -4.1
1.02 ...
0.40 -2.8
25.49 ...
1.03 -13.0
24.65 -1.6
8.90 ...
29.00 -2.2
15.62 -0.8
24.59 1.9
0.30 -6.6
24.46 0.3
5.19 -1.6
0.39 -33.6
0.81 -16.5
3.56 -6.9
1.45 -6.3
2.88 1.7
1.33 -1.5
2.35 -6.9
24.00 -2.0
6.69 -3.5
42.36 -0.8
1.10 -7.3
1.83 -5.5
4.05 ...
9.96 -0.8
49.62 0.8
2.16 -0.9
0.39 -4.7
0.78 -7.0
2.70 -6.8
22.88 -0.1
6.12 -1.9
1.95 -1.0
306.06 -1.3
13.76 0.7
4.00 -7.0
39.22 -3.1
178.42 -5.1
23.65 ...
10.76 -0.4
0.17 -3.5
11.89 -3.6
1.28 -0.8
22.95 0.4
22.20 0.5
52-Wk %
Sym Hi/Lo Chg
DareBioscience DARE
DelTaco
TACO
Dermira
DERM
DeutscheBank DB
DeutschBkTruPS DKT
Digimarc
DMRC
Digirad
DRAD
DominionEner D
DominionEnerMid DM
DowDuPont
DWDP
ECA Marcellus ECT
EP Energy
EPE
EPRPropPfdE EPRpE
EQT Midstream EQM
EdgeTherap
EDGE
EdgewaterTech EDGW
EnLinkMid
ENLC
EnLinkMidPtrs ENLK
EnzoBiochem ENZ
EstreAmbWt ESTRW
EuronetWorldwide EEFT
Evolus
EOLS
ExtractionOil XOG
FTD
FTD
Ferrellgas
FGP
Finisar
FNSR
FiveOaksInvt OAKS
FranklinRscs
BEN
GAMCO Investors GBL
GabelliUtilityRtWi GUTrw
Gafisa
GFA
GeneralMills
GIS
GenesisEnergy GEL
GlobalPtnrs
GLP
GolarLNGPartners GMLP
GoldenStarRscs GSS
GoldmanSachsBDC GSBD
GreentreeHospital GHG
GpoAeroportSur ASR
GulfIslandFab GIFI
HSBCPfd
HSEA
HamiltonBeach HBB
HeartlandExp HTLD
HeatBiologics HTBX
HebronTech
HEBT
HighPointResources HPR
HimaxTechs
HIMX
HoeghLNG Ptrs HMLP
HudbayMineralsWt HBM.WS
IDT
IDT
Dividend Changes
Company
Symbol
Amount
Yld % New/Old Frq
DOX
UDR
1.5 .25 /.22 Q
3.6 .3225 /.31 Q
Apr20 /Mar30
Apr30 /Apr09
0.4
Mar29 /Mar28
Initial
Reinhart Int Bd NextSh
RPIBC
.03557
M
Stocks
Ability
ABIL
Net YTD
NAV Chg % Ret Fund
10.44
...
9.83 +0.01
MFS Funds Class I
39.00 +0.05
ValueI
MFS Funds Instl
24.95 +0.13
IntlEq
Mutual Series
30.74 +0.17
GlbDiscA
Oakmark Funds Invest
31.39 -0.01
EqtyInc r
82.31 -0.21
Oakmark
OakmrkInt
27.60 +0.04
Old Westbury Fds
14.23 -0.05
LrgCpStr
Oppenheimer Y
DevMktY
43.60 -0.22
43.40 -0.01
IntGrowY
Parnassus Fds
42.04 +0.05
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
10.07 -0.01
TotRt
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
100.01 -1.04
BlChip
CapApp
28.21 -0.03
32.08
...
EqInc
69.89 -0.19
EqIndex
Growth
64.04 -0.58
70.76 +0.26
HelSci
38.16 -0.35
InstlCapG
18.51 +0.09
IntlStk
IntlValEq
14.85 +0.08
89.51 -0.53
MCapGro
29.90 +0.02
MCapVal
54.98 -0.22
N Horiz
N Inc
9.27
...
11.19 +0.05
OverS SF r
NA
...
R2020
R2025
NA
...
NA
...
R2030
-1.5 R2035
-1.4 R2040
-4.0
-2.0
-3.3
-2.5
-2.4
-3.4
-1.6
1.5
-0.5
-1.5
NA
-1.4
NA
NA
NA
3.8
-0.2
-3.4
-2.2
2.2
0.6
3.4
-0.9
-1.8
2.9
-1.6
4.6
-1.7
-1.1
NA
NA
NA
/Mar23
Net YTD
NAV Chg % Ret Fund
NA
...
NA
...
36.10 -0.07
PRIMECAP Odyssey Fds
AggGrowth r 48.90 -0.36
Growth r
39.74 -0.19
Principal Investors
13.64 +0.02
DivIntlInst
Prudential Cl Z & I
14.23 +0.01
TRBdZ
Schwab Funds
S&P Sel
NA
...
TIAA/CREF Funds
19.26 -0.05
EqIdxInst
IntlEqIdxInst 19.85 +0.11
Tweedy Browne Fds
27.85 +0.04
GblValue
VANGUARD ADMIRAL
500Adml
240.49 -0.66
33.94 -0.04
BalAdml
11.58 +0.01
CAITAdml
CapOpAdml r 154.02 -0.74
38.46 -0.27
EMAdmr
74.66 +0.03
EqIncAdml
ExplrAdml
90.72 -0.57
ExtndAdml
83.60 -0.12
GNMAAdml 10.26 +0.01
71.84 -0.44
GrwthAdml
HlthCareAdml r 86.70 +0.68
...
HYCorAdml r 5.76
25.24 -0.01
InfProAd
IntlGrAdml
97.52 -0.69
ITBondAdml 11.04 -0.01
...
ITIGradeAdml 9.48
LTGradeAdml 10.03 +0.02
MidCpAdml 188.39 -0.75
11.21 +0.01
MuHYAdml
MuIntAdml
13.87
...
MuLTAdml
11.40 +0.01
10.82
...
MuLtdAdml
...
MuShtAdml 15.70
PrmcpAdml r 133.76 -0.39
RealEstatAdml 107.05 +2.58
SmCapAdml 69.57 +0.08
STBondAdml 10.27 -0.01
Value
1:10
InspireMD
NSPR
Intellicheck
IDN
Invitae
NVTA
Iteris
ITI
J.Jill
JILL
JMP
JMP
JuniperNetworks JNPR
KeryxBiopharm KERX
KimballElec
KE
KinderMorgan KMI
KinderMorganPfdA KMIpA
Knowles
KN
LM Funding
LMFA
LegacyAcqnWt LGC.WS
LibertyLatAmA LILA
LibertyLatAmC LILAK
LibertyOilfield LBRT
LifewayFoods LWAY
LinkMotion
LKM
Macom Tech MTSI
MatinasBioPharma MTNB
MeetGroup
MEET
MelintaTherap MLNT
MerrimackPharm MACK
MexcoEnergy MXC
MicrobotMed MBOT
MilestoneSci
MLSS
MoneyGram
MGI
MYndAnalytics MYND
NanoDimension NNDM
NaviosMaritime NM
NaviosMaritimeMid NAP
NebulaAcqnWt NEBUW
NexGenEnergy NXE
NortechSystems NSYS
NuSTAREnergy NS
ObalonTherap OBLN
OnconovaTherap ONTX
OpGen
OPGN
OrexigenTherap OREX
OrthoPediatrics KIDS
PBF Logistics PBFX
PacBiosciCA
PACB
PacificEthanol PEIX
PacGE pfH
PCGpH
ParkerDrilling PKD
PennREITPfdC PEIpC
PerionNetwork PERI
PetroQuestEner PQ
Pixelworks
PXLW
PrudentialNts PFK
Pulmatrix
PULM
PurpleInnovation PRPL
RPC
RES
RaPharm
RARX
Radisys
RSYS
RangerEnergySvcs RNGR
RedViolet
RDVT
Symbol
1.33 -43.8
1.50 2.5
4.35 -13.1
4.43 -4.4
4.17 ...
5.04 0.6
23.85 -0.8
3.94 -0.2
15.75 -1.9
14.76 -1.9
30.00 -1.6
12.26 -0.7
0.75 -11.0
0.33 -2.8
19.61 -6.0
19.29 -6.3
16.18 -2.5
6.02 -0.2
1.56 -12.0
15.50 -5.0
0.77 -9.1
1.85 -1.6
7.35 -2.3
7.63 -1.5
3.00 -5.0
0.67 -2.8
0.71 -5.0
8.49 -1.7
1.26 -8.8
1.82 -2.1
0.86 -1.2
3.80 -3.2
0.91 -18.6
1.73 -4.9
2.87 -17.7
19.22 2.0
3.17 2.1
0.80 -6.7
1.63 -8.4
0.17 8.0
14.47 -3.8
17.75 -1.6
2.16 -5.2
2.75 -8.9
18.65 -2.5
0.62 -6.7
19.44 -0.5
0.77 1.1
0.66 -11.3
3.71 -4.6
24.92 -0.2
0.71 -18.0
8.22 -6.9
16.97 -4.2
5.23 -3.8
0.62 -4.3
7.60 1.7
5.23 -7.6
52-Wk %
Sym Hi/Lo Chg
RegulusTherap RGLS
Resonant
RESN
resTORbio
TORC
RevenHousingREIT RVEN
RexAmerRes REX
RoadrunnerTrans RRTS
SCYNEXIS
SCYX
SellasLifeSci
SLS
SafetyIncome SAFE
SandRidgePermian PER
ScorpioTankers STNG
SearsHoldingsWt SHLDW
Semgroup
SEMG
SeresTherap
MCRB
ShellMidstream SHLX
SignetJewelers SIG
Silicom
SILC
Smart&FinalStores SFS
SocketMobile SCKT
Sohu.com
SOHU
SolidBiosci
SLDB
SotherlyHotelsPfB SOHOB
Sprint
S
SteelPartners SPLP
SunlandsOnline STG
SunstoneHotelPfE SHOpE
Sunworks
SUNW
SuperiorIndsIntl SUP
THL Credit
TCRD
TakungArt
TKAT
TarenaIntl
TEDU
TatTechnologies TATT
TeekayLNG PfdB TGPpB
TelekmIndonesia TLK
Tellurian
TELL
Tesla
TSLA
The9
NCTY
ThomsonReuters TRI
Tintri
TNTR
TransCanada TRP
TrueCar
TRUE
Tuniu
TOUR
US Concrete
USCR
UltraparPart
UGP
VeriFoneSystems PAY
Vivus
VVUS
VoceraComm VCRA
VulcanMatls
VMC
WesternCopper WRN
WesternGasEquity WGP
WestmorelandCoal WLB
WestwaterRscs WWR
WheelerREITPfdD WHLRD
Whirlpool
WHR
WhiteHorseNts WHFBL
YatraOnline
YTRA
Amount
Yld % New/Old Frq
0.72 -9.3
3.26 -0.9
10.16 -6.0
2.72 -14.5
70.48 0.4
2.61 -11.5
1.29 -0.7
3.43 -7.9
15.65 -0.3
1.80 -5.1
1.92 -4.0
0.21 -36.0
20.20 -2.4
7.40 -5.4
20.08 ...
37.20 0.7
33.50 -5.9
5.45 -0.9
3.21 -3.9
29.66 -7.3
7.08 -10.6
24.85 0.4
4.81 -0.6
17.50 -1.1
9.56 -10.5
25.01 0.2
0.90 -10.9
13.28 -2.2
7.74 0.1
1.96 -2.3
10.83 1.0
9.00 -5.5
23.10 0.4
25.96 0.4
6.45 -2.1
252.10 -7.7
0.45 -10.4
38.22 ...
1.82 -11.6
40.02 0.1
8.88 1.8
5.82 -4.7
58.60 -4.1
20.60 1.1
15.41 -0.8
0.36 -3.0
22.43 2.9
110.23 -3.0
0.78 -3.3
32.24 -1.2
0.36 -6.0
0.52 -4.1
14.66 0.3
150.22 -1.1
25.21 -0.2
5.93 -4.1
Payable /
Record
Foreign
Payable /
Record
Increased
Amdocs
UDR
0.82 -6.6
10.16 -2.3
7.78 0.4
13.67 -0.1
25.45 -0.1
24.50 -1.0
1.50 -3.1
66.99 -2.1
15.25 -3.2
62.33 -1.9
1.85 -2.6
1.27 -8.6
33.65 2.5
55.40 2.7
1.15 -91.6
5.38 -1.8
14.05 -0.7
12.75 1.6
5.38 -0.2
0.52 -4.8
76.06 -8.2
8.05 -10.9
11.09 -2.4
3.65 -1.8
2.89 -1.0
15.07 -3.9
2.82 0.7
33.58 -0.8
24.55 -1.0
0.16 -22.3
5.53 -1.3
43.96 -2.1
18.42 1.8
15.21 -0.6
16.82 -2.8
0.59 -4.0
18.91 0.4
12.52 0.2
165.93 -0.8
7.00 -3.4
26.23 -0.3
21.15 -0.5
17.76 -1.3
1.67 -6.6
1.45 -17.6
4.71 -1.8
6.02 -6.3
15.33 -2.2
0.05 -9.7
6.42 -1.5
Company
Dividend announcements from March 28.
52-Wk %
Sym Hi/Lo Chg Stock
Stock
Arcos Dorados Holdings A
Arcos Dorados Holdings A
Brasil DistrGrupo Pao ADR
Ecopetrol ADR
Nam Tai Property
Nokia ADR
PLDT ADR
ARCO
ARCO
2.3
2.3
CBD
EC
NTP
NOK
PHI
2.2
3.5
.05
.05
.1064
.63737
.07
.23644
.5342
Q
Q
Q
Apr05 /Apr02
Oct05 /Oct02
Jun04 /Apr06
Apr27 /Apr18
Apr20 /Mar31
Jun18 /Jun01
May08 /Apr12
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
NA STIGradeAdml 10.50
... -0.6 PrmcpCor
26.47 -0.09 -1.6 VANGUARD INSTL FDS
33.94 -0.05 -1.7
NA TotBdAdml
10.50
... -1.7 SelValu r
29.62 +0.02 -5.3 BalInst
-3.3 TotIntBdIdxAdm 21.84 +0.01 0.8 STAR
26.51 -0.05 -1.1 DevMktsIndInst 14.08 +0.05 -2.1
TotIntlAdmIdx r 30.00 +0.04 -1.5 STIGrade
10.50
... -0.7 DevMktsInxInst 22.01 +0.08 -2.1
83.60 -0.11 -1.1
10.3 TotStAdml
65.17 -0.15 -1.9 TgtRe2015
15.16 -0.01 -1.1 ExtndInst
71.85 -0.43 -0.4
6.7 TxMIn r
14.06 +0.05 -2.1 TgtRe2020
30.99 -0.02 -1.2 GrwthInst
InPrSeIn
10.28
... -1.1
ValAdml
39.77
... -3.4 TgtRe2025
18.24 -0.01 -1.4
237.35
-0.65 -2.1
InstIdx
-1.9 WdsrllAdml
64.39 +0.02 -4.1 TgtRe2030
33.15 -0.02 -1.4
237.36 -0.66 -2.1
62.93
... -3.0 TgtRe2035
20.38 -0.01 -1.5 InstPlus
WellsIAdml
57.93 -0.14 -1.9
InstTStPlus
-1.7 WelltnAdml
70.24 +0.06 -2.7 TgtRe2040
35.21 -0.02 -1.6
MidCpInst
41.62 -0.16 -1.3
77.64 -0.17 -1.7 TgtRe2045
22.13 -0.02 -1.6
WndsrAdml
MidCpIstPl
205.24 -0.82 -1.3
NA VANGUARD FDS
35.62 -0.02 -1.6
TgtRe2050
69.56 +0.07 -1.4
SmCapInst
26.01 +0.05 -2.0 TgtRetInc
13.38 -0.01 -0.9
DivdGro
SmCapIstPl 200.79 +0.21 -1.4
-2.0 HlthCare r
205.55 +1.61
... TotIntBdIxInv 10.92
... 0.8 STIGradeInst 10.50
... -0.6
-1.6 INSTTRF2020 22.25 -0.01 -1.2 WellsI
25.98
... -3.0 TotBdInst
10.50
... -1.7
40.67 +0.03 -2.7 TotBdInst2
INSTTRF2025 22.55 -0.01 -1.4 Welltn
10.47
... -1.7
-2.2 INSTTRF2030 22.79 -0.01 -1.4 WndsrII
36.28
... -4.1 TotBdInstPl
10.50
... -1.7
INSTTRF2035 23.02 -0.02 -1.5 VANGUARD INDEX FDS
TotIntBdIdxInst 32.77 +0.01 0.8
-2.1 INSTTRF2040 23.25 -0.02 -1.6 500
240.49 -0.66 -2.1 TotIntlInstIdx r 119.97 +0.18 -1.4
-1.7 INSTTRF2045 23.41 -0.02 -1.6 ExtndIstPl
206.31 -0.28 -1.1 TotItlInstPlId r 119.99 +0.18 -1.4
-1.1 IntlVal
39.29 +0.05 -1.5 SmValAdml
54.99 +0.21 -3.1 TotStInst
65.18 -0.15 -1.9
0.3 LifeCon
19.66
... -1.2 TotBd2
10.47
... -1.7 ValueInst
39.76 -0.01 -3.4
0.9 LifeGro
33.16 -0.02 -1.5 TotIntl
17.94 +0.03 -1.4 Western Asset
-3.7 LifeMod
NA
... NA
26.78 -0.01 -1.3 TotSt
65.15 -0.15 -2.0 CorePlusBdI
2.6
-1.1
-1.2
-0.5
... Performance of IPOs, most-recent listed first
% Chg From
% Chg From
-1.5
Wed3s Offer 1st-day Company SYMBOL
Wed3s Offer 1st-day
-1.1 Company SYMBOL
close ($) price close IPO date/Offer price
close ($) price close
2.0 IPO date/Offer price
-2.2 Bilibili
11.24
... Sunlands Online Edu Grp 9.57 –16.8 –13.8
–2.3
STG March 23/$11.50
-2.1 BILI March 28/$11.50
-4.9 Homology Medicines
18.66
... Golden Bull
4.50 12.5 –2.6
16.6
-1.3 FIXX March 28/$16.00
DNJR March 20/$4.00
-1.1
OneSmart Intl Edu Grp 10.80
... Senmiao Technology
5.89 47.3
4.2
–1.8
-1.2
ONE March 28/$11.00
AIHS March 16/$4.00
-1.5
0.2 Tiberius Acquisition
10.09
0.7
–6.9
0.9
-0.2 GreenTree Hospitality Grp 13.03
TIBRU March 16/$10.00
0.3 GHG March 27/$14.00
0.1
30.98
8.8 Zscaler
27.53 72.1 –16.6
47.5
-8.0 Dropbox
ZS March 16/$16.00
-1.4 DBX March 23/$21.00
-0.6
IPO Scorecard
Sources: WSJ Market Data Group; FactSet Research Systems
.
B10 | Thursday, March 29, 2018
THE WALL STREET JOURNAL.
BANKING & FINANCE
Fed Hopeful to Keep Course CME Bids to Buy
U.K.’s NEX Group
If made New York Fed
boss, Williams would
probably continue
policies incumbent set
BY ALEXANDER OSIPOVICH
The front-runner for president of the Federal Reserve
Bank of New York has a regulatory record similar to its current leader, suggesting his appointment
would
bring
continuity in the regulator’s
relationship to Wall Street.
John Williams, the Federal
Reserve Bank of San Francisco
president in line for a transfer
to New York, and current New
York Fed President William
Dudley both have supported
restrictions on banks imposed
after the 2008 bailouts, criticized bank executives for riskmanagement failures, and
sought to put distance between their staffs and the
bankers they oversee.
They also have seen major
bank misbehavior occur on
their watch. Mr. Williams’s
role in overseeing Wells Fargo
& Co. triggered criticism of his
regulatory record because of
the California-based bank’s
risk-management failures and
customer abuses.
When the Fed hit Wells
Fargo with an unprecedented
enforcement action this year,
it was both a rebuke of the
firm and an acknowledgment
that regulators had allowed
risk-management deficiencies
to fester.
As San Francisco Fed president, Mr. Williams oversees
teams of bank examiners responsible for firms including
Wells Fargo. In a March 2017
Wall Street Journal interview,
he said the bank’s phony-accounts scandal, fueled by a
sales culture heavily focused
on getting customers to sign
up for more services, showed
the bank had broad problems
that many observers missed.
“Supervision is not just,
ANDREW HARRER/BLOOMBERG NEWS
BY RYAN TRACY
San Francisco Fed President John Williams has a regulatory record like his New York counterpart’s.
again, about stress tests and
capital, but it’s also about the
management, the governance,
and culture,” he said. “Clearly
in the Wells Fargo case, the
culture was part of the problem. What’s striking, of course,
is Wells Fargo is well-known
to, thought to, have had a very
strong culture.”
‘We really need to
make sure that the
largest banks have...
lots of liquidity.’
The Fed’s 12 regional reserve banks enforce rules for
private-sector banks in their
area. The New York Fed is especially powerful given New
York’s importance in finance.
Here are some other things
Mr. Williams has said about
regulatory policy.
On postcrisis regulations:
Mr. Williams in August 2017
praised strict rules on big
banks, while also saying that
rules on small and mediumsize banks were too strict. Mr.
Dudley and other Fed officials
have made similar statements.
“We really need to make
sure that the largest banks
have lots of capital, lots of liquidity,” he said. “You don’t
need to have this huge burden
on smaller banks.”
On bank culture: Mr. Dudley has said Wall Street firms
need to change their culture.
Bankers, he has said, need to
make sure their employees
don’t have incentives to take
excessive risks.
Mr. Williams in the March
2017 interview expressed a
similar view. “What we’ve
learned over and over again is
when the incentives are just so
skewed, [that is going to] have
a negative effect on culture
and have negative consequences,” he said.
On the regulation of financial technology: “It’s not that
regulators are here to call the
cops on the party; we’re here
to make sure no one jumps off
the roof,” Mr. Williams said in
a 2016 speech about the benefits and pitfalls of financial innovation. “It’s important that
we have a level playing field,
regardless of how institutions
prefer to describe themselves
or what kind of charter they
hold.”
On the Fed’s role in keeping the financial system stable: Mr. Williams said in 2015
the Fed should use monetary
policy to stabilize the financial
system only as a last resort,
after first trying regulatory
measures. He pointed to U.S.
regulators’ crackdown on leveraged loans to heavily indebted companies as an example of how regulators should
address
financial-stability
risks.
“We should instead supplant the focus on individual
institutions’ financial soundness, based on traditional
measures of regulatory capital,
with a more systemic view of
the financial system’s overall
health,” he said.
CME Group Inc. offered to
buy U.K. financial-technology
company NEX Group PLC, a
deal that would put the Chicago futures-exchange giant in
a commanding position in the
vast market for U.S. government debt.
NEX said in a statement on
Wednesday that it had received a nonbinding takeover
offer of £10 a share, the equivalent of $14.08. That would
value the London-based company at about $5.4 billion.
NEX said discussions were
at an “advanced stage.” There
is no certainty as to whether
an offer will be made, or what
terms of an offer would be,
NEX said.
A NEX spokeswoman declined to comment further. A
CME spokeswoman declined to
comment.
The two companies confirmed earlier this month that
CME had made a preliminary
takeover approach to NEX.
The news set off speculation
that other bidders could
emerge for NEX, such as Intercontinental Exchange Inc.,
owner of the New York Stock
Exchange, or London Stock
Exchange Group PLC. It also
triggered a surge in NEX’s
stock price, which is up 45%
since reports of the talks
emerged on March 15.
NEX owns the biggest electronic platform for U.S. Treasury bonds trading, called BrokerTec, while CME dominates
the market for interest-rate
futures linked to U.S. government bond prices. Combining
the two would put CME in a
powerful position, as it would
control the plumbing that underpins both Treasury futures
and a swath of the underlying
“cash” market.
“We believe combining the
underlying cash securities
with the trading of the listed
Deutsche Bank CEO Reaffirms Strategy
Deutsche Bank AG’s chief
executive, John Cryan, told
employees Wednesday he is
“absolutely committed” to
serving the bank, in a memo
posted to the lender’s website
a day after reports that its
chairman has sounded out potential CEO candidates from
outside the bank.
“I just wanted to reaffirm
that I am absolutely committed to serving our bank and to
continuing down the path on
which we started some three
years ago,” Mr. Cryan said in
the memo, presented on
Deutsche Bank’s website as “a
message from John Cryan on
the current situation.”
“We all know that we have
a lot of work to do: our programs are ambitious, but the
financial results have so far
ANDREAS ARNOLD/BLOOMBERG NEWS
BY JENNY STRASBURG
Supporters of CEO John Cryan say he deserves more time.
not been what all of us would
want them to be,” he said in
the memo. He cites a “destabilizing effect” from “wide-
spread rumors” about the
bank.
The memo doesn’t specify
the “widespread rumors.” The
Silver Lake Purchases STREET
Stake in Credit Karma
BY PETER RUDEGEAIR
Buyout shop Silver Lake is
purchasing a roughly $500
million stake in Credit Karma
Inc. in a deal that makes the
company behind the popular
personal-finance portal one of
the most highly valued in the
financial-technology sector.
Credit Karma isn’t receiving
any proceeds or issuing any
new shares as part of the
transaction, Chief Executive
Kenneth Lin said in an interview. Rather, Silver Lake is
amassing common shares from
earlier investors and employees in a secondary sale that
values the 11-year-old company at roughly $4 billion, according to a person familiar
with the matter.
Such deals are in vogue
among Silicon Valley startups
that want to postpone listing
shares on public markets but
also want to give shareholders
a way to cash out. Last year,
as part of multibillion-dollar
investments in ride-hailing
firm Uber Technologies Inc.
and shared-office-space company WeWork Cos., Japanese
conglomerate SoftBank Group
Corp. committed to buying
significant stakes on the secondary market.
“We’re over a decade old,”
Credit Karma’s Mr. Lin said.
“We do think it’s important to
give investors an opportunity”
to take money out of the firm.
Given the latest financing,
Credit Karma is likely to delay
a public offering until at least
late 2019, according to a person familiar with the matter.
Mr. Lin said the company evaluates an IPO periodically but
that he doesn’t have a firm
sense of timing.
As part of the deal, Silver
Lake managing partner Mike
Bingle will join Credit Karma’s
board. Mr. Bingle is also on
the board of Social Finance
Inc., the online lender that received a $500 million investment last year from a group of
investors led by Silver Lake.
Credit Karma offers consumers access to their credit
scores and borrowing history,
alerts to possible data
breaches, credit monitoring,
and tax preparation and filing.
The company said it has over
80 million users in the U.S.
and Canada.
The company generated
$500 million in revenue in
2016, and Mr. Lin said revenue
has been increasing at a double-digit-percentage pace since
then.
Continued from page B1
much privacy is becoming an
issue for Americans.
T
here also is a backlash
to the sheer scale of
many of the big internet companies. Earnest discussion among economists
about the new monopolies is
unlikely to lead directly to
government intervention,
but a change in public perception makes antitrust action more likely.
There is a further danger
from the economy. A stronger economy should mean
more companies are able to
demonstrate rising sales. Investors who want growth
will be able to buy businesses exposed to the economic cycle, and the fast-expanding tech companies will
lose some of their exclusivity
in the minds of shareholders.
The same point can be seen
by looking at interest rates.
As rates rise, profits far in
the future look less attractive, which should compress
the valuation of disrupters
reinvesting all their earnings
in the hope of future returns.
If—and it is a big if—you expect the economy to improve
and bond yields to rise, disruptive tech stocks should be
less appealing.
communication is the first
public comment from Mr.
Cryan after media, including
The Wall Street Journal, reported Tuesday that Deutsche
Bank Chairman Paul Achleitner has reached out externally
to potential candidates to be
the bank’s next CEO.
The Journal, citing people
briefed on the discussions,
said the outreach has been informal and raises the possibility that Mr. Cryan could leave
before his contract ends in
2020. Messrs. Cryan and
Achleitner didn’t respond to
requests for comment, and a
Deutsche Bank spokeswoman
said they wouldn’t comment.
The bank didn’t immediately
respond to a request for comment Wednesday about the
memo.
Mr. Cryan said in the memo
that the bank needs “to focus
on executing on the strategy
that was agreed and signed off
by both the management and
supervisory boards. There is
no difference of opinion here.”
The Journal reported Tuesday that members of Deutsche
Bank’s supervisory board
aren’t all in agreement on CEO
succession planning, citing
people familiar with board deliberations.
Deutsche Bank is coming
under pressure from investors
after a string of losses, and after recently missing cost-cutting targets.
Mr. Cryan has been CEO
since the summer of 2015. He
is credited with addressing
major legal issues and bolstering the bank’s relationship
with regulators, and supporters say he deserves more time
to follow through on strategy
plans the bank has announced.
Chomp
Tech stocks have fallen hard, but remain well ahead of the market.
200%
NYSE FANG+ index*
175
March 17, 2018
Reports that data firm Cambridge
Analytica improperly kept
Facebook user data for years.
150
125
100
Facebook
75
50
25
S&P 500
0
–25
2015
’16
’17
*Comprises 10 big tech companies
Sources: Thomson Reuters (FANG+); FactSet (FB, S&P)
Tech stocks rode high in
the past three years, ignoring all these concerns as investors focused on the extraordinary profits and
dominant market shares
many were producing.
I
t isn’t always true that
highflying stocks fall further, but it certainly was
on Tuesday.
Out of the top 100 stocks
in the S&P 500 for the year
to Monday, 39 were in the
bottom 100 on Tuesday,
about double what would be
expected by chance. It
worked the other way, too,
with just over one-third of
’18
THE WALL STREET JOURNAL.
the bottom 100 stocks for
the year in the top 100 on
Tuesday.
In the short run, the drop
means the overly fast upward momentum of the big
tech stocks has abated, leaving them less exposed to further selling driven by technical factors, although
Amazon.com Inc. led more
falls on Wednesday after a
report that President Donald
Trump wants to target the
company.
In the longer run, expect
lots of contrition from tech
company CEOs as they try to
head off political pressure on
the bottom line.
futures would be a first in the
exchange industry and…would
set a unique precedent,” Rich
Repetto, an analyst at Sandler
O’Neill + Partners, said in
March 19 research note about
the deal.
That could bring greater efficiencies to bond trading.
Currently, Wall Street firms
active in both cash Treasurys
and interest-rate futures need
to post cash to back their
trades in two separate places.
Bringing BrokerTec and CME’s
futures under the same roof
could lead to one unified
clearing system for both kinds
of trades, freeing up cash that
traders could use for other
purposes.
$5.4B
The amount at which CME
Group’s offer values NEX Group.
U.S. government bonds are
the world’s biggest debt market, with some $14.5 trillion in
Treasury securities outstanding. About $535 billion of
Treasurys traded each day on
average in the week ended
March 14, according to Federal
Reserve data.
According to the rules of
the London Stock Exchange,
CME has until April 12 to either make a firm offer or announce that it doesn’t intend
to bid for NEX.
If completed, such a deal
would likely be the biggest acquisition for CME since 2008,
when it acquired the New York
Mercantile Exchange for about
$10 billion. That deal helped
cement CME’s status as the
world’s largest exchange operator.
—Daniel Kruger
contributed to this article.
Anbang’s
Wu Seeks
Leniency
BY JAMES T. AREDDY
SHANGHAI—Wu Xiaohui,
who built a small insurer into
China’s third-largest and a
global deal maker, asked for
leniency in court amid charges
that he falsified financial reports to exaggerate business
assets and mask benefits to
himself.
At the conclusion of his
one-day trial, Mr. Wu expressed remorse and indicated
he understood the charges
against him relating to his former position as chairman of
Anbang Insurance Group Co.,
according to a summary published by the Shanghai No. 1
Intermediate People’s Court.
The court didn’t specify
whether Mr. Wu entered a plea
to the charges, which included
forging documents, raising
over $10 billion using fraudulent means and abusing power
to appropriate company funds
and hide his control of Anbang. Mr. Wu’s lawyers didn’t
respond to requests for comment.
The charges are considered
severe and follow a government takeover last month of
Anbang after regulators found
that unspecified illegal registration filings by the insurer
could “seriously threaten the
solvency of the company.” In
China, the government intervention was interpreted as evidence authorities consider the
firm with $300 billion in assets too big too fail, after just
14 years of operation. Prosecutors told the court the takeover kept Mr. Wu’s actions
from harming policyholders.
Anbang’s reorganization
and Mr. Wu’s trial are part of a
government offensive against
brash private firms, some of
which seemed to operate at
times with official support.
Tycoons have disappeared into
investigations or been forced
to backpedal on acquisitions.
Mr. Wu remains in custody.
Guilt is virtually assured in
Chinese criminal cases, though
the court didn’t announce a
date the verdict will be handed
down.
—Liyan Qi in Beijing and
Chunying Zhang in Shanghai
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, March 29, 2018 | B11
* * * *
MARKETS
U.S. Stocks Continue to Struggle
Consumer-discretionary
and tech sectors are
the worst performers
so far this week
BY AMRITH RAMKUMAR
AND GEORGI KANTCHEV
BY DANIEL KRUGER
The U.S. dollar gained after
a report showed the economy
expanded faster than originally measured in the fourth
quarter of 2017.
The WSJ Dollar Index, which
measures the currency against
a basket of 16 others, rose 0.7%,
the biggest gain since Feb. 2, to
83.94. The
CURRENCIES
dollar advanced 0.8%
against the
euro, to $1.2310, and 1.4% versus the yen, to ¥106.85.
Gross domestic product, a
broad measure of the goods and
services produced across the
U.S., rose at a 2.9% annual rate
in the fourth quarter, adjusted
for seasonality and inflation,
the Commerce Department said
Wednesday. That exceeded
economists’ expectations.
The U.S. dollar is also being
supported by concerns that the
synchronous global growth may
be slowing, even as the U.S. continues to expand. Those worries
have been fueled by concerns
about the potential for rising
trade tensions to slow international commerce, putting a brake
on growth. European growth has
showed signs of cooling, reinforcing those concerns.
Other signs of anxiety in financial markets have also
boosted the dollar, analysts
said. Those include gains in
the U.S. government-bond
market, the rising cost of dollar funding in Europe, and $1.5
trillion in U.S. tax cuts, which
are forcing the government to
increase its short-term borrowing, leading to a greater
scarcity for the currency.
“There are all of these things
that are happening that are
negative for risk sentiment,”
said Mark McCormick, a currency strategist at TD Securities.
Amazon was among Wednesday’s biggest decliners on worries the White House wants to clamp down on it.
Trying to Stabilize
Some technology and internet firms such as Twitter rose
Wednesday, though others, including Apple and
Amazon.com, extended recent declines.
4%
2
Twitter
0
Apple
–2
–4
Amazon.com
–6
–8
10 a.m. 11
noon
1
2
or less than 0.1%, to 23848.42,
while the S&P 500 shed 7.62
points, or 0.3%, to 2605.00. All
three indexes have fallen in
five of the past six sessions.
Shares of Facebook, down
14% this month, rose 81 cents,
or 0.5%, to $153.03, after the
company said it would make it
simpler for users to examine
and change some of their data
3
4
THE WALL STREET JOURNAL.
Source: WSJ Market Data Group
tracked by Facebook.
Amazon was among the
worst performers Wednesday in
the S&P 500, losing 65.63, or
4.4%, to 1431.42, amid speculation that the White House
wants to clamp down on the ecommerce giant’s growing dominance. Axios reported President Donald Trump is “obsessed
with Amazon” and has dis-
cussed changing its tax treatment due to concerns about
how the company is affecting
mom-and-pop businesses.
Netflix, meanwhile, declined
14.92, or 5%, to 285.77, and Apple was down 1.86, or 1.1%, to
166.48, after Goldman Sachs
analysts lowered their estimates of iPhone demand for
the March and June quarters.
Dozens of iPhone owners are
also taking Apple to court over
the company’s disclosure that
it slowed down old phones to
preserve battery life.
Tesla lost 21.40, or 7.7%, to
257.78, extending Tuesday’s
tumble, amid an investigation
into a fatal Tesla crash and following a Moody’s Investors
Service ratings downgrade on
the electric-auto maker’s debt.
Energy stocks fell alongside
oil prices after data showed inventories rose in the week
ended March 23. The S&P 500
energy sector shed 2%.
With some riskier investments falling, some investors
put money into bonds.
The yield on the 10-year
Treasury note fell to 2.777%
from 2.790%, its lowest close
since Feb. 6. Yields fall as
prices rise.
Stocks hit records in late
January, but have since been
dragged down by concerns
over inflation, the prospect of
tightening monetary policy by
central banks and the possibility of a global trade war.
Still, many investors aren’t
convinced that markets have
turned, citing strong economic
growth around the world.
On Wednesday, fourth-quarter U.S. economic growth was
revised to 2.9%, higher than the
previous estimate of 2.5%.
Meanwhile, a survey showed
that consumer sentiment in
Germany, Europe’s largest economy, was set to rise in April.
“The macro fundamentals
haven’t dropped off the table.
They’re where they’ve been
over the last several years, and
that’s been a good place to be,”
said John Velis, macro strategist
at State Street Global Markets.
Mr. Velis said he expects
optimism about the global
economy to contribute to further market swings.
In early Asian trading
Thursday, Japan’s Nikkei was
up 0.6%, while Hong Kong’s
Hang Seng was down 0.6%.
Hong Kong Firm Pops in Debut
BY JOANNE CHIU
Global stocks may be on the
retreat again, but a Hong Kong
satirical publisher was still
able to post serious gains in
its stock-trading debut.
In the latest small initial
public offering to see large retail demand, Most Kwai
Chung Ltd. opened Wednesday
seven times higher than the
company’s 1.20 Hong Kong
dollars (15 U.S. cents) IPO
price. Shares rose as high as
HK$11.76 before closing at
HK$6.38, up 432% on the day.
Most Kwai Chung’s publications include weekly Chinese
magazine 100Most and online
video platform TVMost, which
pokes fun at celebrities and
public figures. Its investors
are typical IPO investors, analysts say. Many of them “look
just for short-term gains with
no plan to hold for long,” said
Daniel So, a strategist at China
Merchants Bank International.
The offering set a record as
Hong Kong’s most oversubscribed IPO, with demand
6,289 times the 6.75 million
shares initially offered in the
public portion of the deal. The
previous record was held by
club operator AUX International Holdings Ltd., which
went public in January 2014.
Just two weeks ago, bubbletea seller B&S International
Holdings Ltd. had 2,600 times
more orders than shares available in its HK$100 million
deal. Its share price nearly
Star Turn
Top five Hong Kong IPOs
by first-day performance
Most Kwai Chung
2018
B&S International
2018
KATHY WILLENS/ASSOCIATED PRESS
Dollar
Advances
As Growth
Revised Up
BY AKANE OTANI
BARTEK SADOWSKI/BLOOMBERG NEWS
Shares of big technology
firms came under more pressure Wednesday amid fears of
increased regulatory oversight,
pulling major indexes lower in
another volatile session.
After powering the broader
market for the past year, technology and internet stocks
have fallen
WEDNESDAY’S r e c e n t l y,
MARKETS
dragging
the broader
m a r k e t
down with them. The S&P
500’s information-technology
sector has been the index’s
worst performer over the past
week. The consumer-discretionary sector, which houses
such tech-focused giants as
Amazon.com and Netflix, has
also been hit hard.
Backlash over how socialmedia firms manage user data
and doubts that Facebook and
Alphabet, the parent company
of Google, can extend their
dominance in digital advertising have hurt sentiment in recent sessions. Those challenges have cropped up at a
time when the prospect of
higher interest rates and trade
disruptions had already made
investors nervous about the
tech sector, which is still up
24% over the past year.
“Those are the triggers that
finally will force investors to
look at the high valuations
they’ve been paying for those
stocks,” said Wasif Latif, vice
president of equity investments
at USAA Asset Management,
who prefers industrial, healthcare and consumer stocks.
“Technology has been the
poster child for growth, innovation and greater earnings,
but has also been the poster
child for higher [valuations],”
he added.
The tech-heavy Nasdaq
Composite dropped 59.58
points, or 0.9%, to 6949.23, underperforming the Dow Jones
Industrial Average and the S&P
500. The Dow fell 9.29 points,
Treasurys
Climb as
Investors
Shun Risk
Alibaba
2007*
193%
Ulferts
2018
186%
432%
298%
Microware 174%
2017
Note: Only includes listings on main board
of Hong Kong stock exchange with deal
values over $10 million *Delisted in 2012
Source: Dealogic
THE WALL STREET JOURNAL.
U.S.
government-bond
prices rose again Wednesday
as shaky trading in global
stocks increased investors’ appetite for the safety of government debt.
The yield on the 10-year
Treasury note settled at
2.777%, compared with 2.790%
Tuesday.
Yields, which fall as bond
prices rise, have largely slid
over the past week, as sharp
swings in stocks
CREDIT
from the U.S. to
MARKETS Europe to Hong
Kong have sent
investors into
the safety of assets that tend
to fare well during periods of
market volatility.
The yield on the 10-year
note took a leg lower early
Wednesday after the government said the U.S. trade deficit widened to $75.4 billion in
February, slightly more than
economists had expected and
up from a revised $75.3 billion
in January.
The 10-year yield then
pared much of its decline for
the day after the Treasury Department’s auction of sevenyear notes—the latest in a series of nearly $300 billion of
issuance this week—was met
with tepid demand.
2.777%
10-year Treasury yield Tuesday,
from 2.790% the day before
The government auctioned
off $29 billion of seven-year
notes at a yield of 2.27%, 0.017
percentage point above where
the yield traded before the
auction.
And the bid-to-cover ratio,
a gauge of overall demand,
came in at 2.34, below the average of 2.54, according to
BMO Capital Markets.
Concerns that a wave of
new debt could weigh on the
prices of outstanding bonds
had kept many investors on
edge heading into the week.
Still, Treasurys managed to
hold their ground, with the
yield on the 10-year note
notching its fourth decline in
five trading sessions.
Continued swings in the
stock market should keep
pressure on bond yields heading into the end of the quarter,
analysts say, even as many investors believe a pickup in inflation will ultimately stall the
bond rally.
“While the bond market is
not likely to regain its horns
anytime soon, it does indicate how vulnerable the equity market is to bad news,
and how quickly investors
will seek the safety of U.S.
Treasurys when that bad
news hits the tape,” said
Kevin Giddis, head of fixedincome capital markets at
Raymond James.
Bubble tea seller B&S International’s shares also surged on the first day but have pulled back since.
quadrupled in the first day of
trading, but has fallen 22%
since.
Furniture retailer Ulferts
International Ltd.’s share
price tripled on its opening
day to HK$1.60 after selling
HK$112 million of stock in late
January; the retail portion of
that deal was more than 1,600
times oversubscribed. Its
shares are back to HK$0.69,
versus an offer price of
HK$0.52.
“The eye-popping oversubscription” rates generated
even bigger initial demand for
the stocks given the limited
supply of shares, said Steven
Leung, an executive director in
Hong Kong for investment
bank UOB Kay Hian Securities PCL. The recent rallies are
“beyond their fundamentals
and unsustainable,” he said.
“Investors are advised not to
chase these stocks if they’re
not allotted IPO shares in the
first place.”
Alvin Cheung, an associate
director at Prudential Brokerage, says Most Kwai Chung’s
IPO was priced at a modest 10
times earnings. While that will
support valuation over time,
he said that Wednesday’s
surge is destined to correct.
Mr. Cheung said it is common
for once-hot IPOs to drop
more than 50% from their initial peak.
The big oversubscription
rates also could be inflating
potential demand, Mr. Cheung
said.
China Merchants’ Mr. So
said there are a number of
threats that Most Kwai Chung
faces amid a rapidly changing
advertising and online-media
market. The company reported
a 62% rise in net profit for the
year through last March, to
HK$36.3 million. But earnings
in the following eight months
sank 84% on weaker margins
and listing expenses.
AUCTION RESULTS
Here are the results of Wednesday's Treasury
auctions. All bids are awarded at a single price at the
market-clearing yield. Rates are determined by the
difference between that price and the face value.
ONE-YEAR, 10-MONTH FRNs
$44,323,487,900
Applications
$17,642,362,900
Accepted bids
$16,131,000
" noncompetitively
0.000%
Spread
47.55%
Bids at clearing yield accepted
9128283T5
Cusip number
The floating-rate notes, dated April 2, 2018, mature on
Jan. 31, 2020.
SEVEN-YEAR NOTES
$72,973,986,500
Applications
$34,108,590,900
Accepted bids
$22,525,000
" noncompetitively
$0
" foreign noncompetitively
99.398415
Auction price (rate)
(2.720%)
2.625%
Interest rate
4.76%
Bids at clearing yield accepted
9128284F4
Cusip number
The notes, dated April 2, 2018, mature on March 31,
2025.
What Fund Managers Can Learn From Vacuum Cleaners
BY MIKE CHERNEY
As investors increasingly
turn to low-fee, so-called passive funds that track an index,
one leader of a global fund
company says actively managed funds should learn from
a vacuum-cleaner maker.
Andrew Formica, co-chief
executive at Janus Henderson
Group PLC, an active manager
that has about $370 billion in
assets under management,
says the level of customer service in his industry is poor—
and that U.K.-based appliance
manufacturer Dyson provides
a blueprint for a better model.
“I don’t know if you’ve ever
had a broken Dyson,” Mr. Formica told journalists on a visit
to Sydney. Dyson, which manufactures appliances including
vacuum cleaners and hair dryers, would send replacement
parts to customers who call
about repairs, Mr. Formica
said, adding that the company
would call back to make sure
it is working. “No questions,
no quibbles. That is client experience,” Mr. Formica said.
He outlined how his firm
and other fund managers
could apply that approach:
Talk to clients more about
what is going on in the markets instead of focusing solely
on investment returns.
“That is our role, to go back
and say: ‘There is volatility.
Don’t be surprised. We anticipated it, we’re positioning
your portfolio, we’re working
through what it is, these are
the changes we’re making.’ ”
Last year, clients withdrew
$10 billion from the fund manager. Mr. Formica said that
was within expectations given
the recently completed merger
between U.S.-based Janus Capital Group Inc. and U.K.-based
Henderson Group PLC.
The merger highlighted the
pressures that active managers face amid the shift to passive index funds. A larger geographic footprint could help
active managers attract more
clients and lower costs.
Mr. Formica said he aims
for Janus Henderson to post
net inflows of about 1%—the
current industry average—in
2019, which would mean inflows of about $3 billion to $5
billion. He said that would be
difficult to achieve this year.
.
B12 | Thursday, March 29, 2018
THE WALL STREET JOURNAL.
MARKETS
Gold Gets Bearish Signal From Stocks
Some investors worry
as mining shares alter
their usual pattern
with the metal’s price
BY AMRITH RAMKUMAR
Shares of gold miners have
fared worse than the precious
metal itself over the past
year—a development that is
fueling concern about bullion’s
ability to keep climbing.
Gold is up 1.4% so far this
year, outpacing the S&P 500,
which is down 2.6%, and the
NYSE Arca Gold Miners Index,
which has fallen 7%. The divergence between gold and companies that mine it became
particularly pronounced starting in late January, when
stocks in other sectors attracted more interest from investors. Among the largest
producers, Barrick Gold Corp.
has fallen 12% year to date.
Typically,
gold-mining
stocks tend to be more volatile
than gold itself. But that usually occurs in a different fashion: Miners tend to experience
outsize losses when the gold
price is falling and typically
overshoot when prices rally.
The current deviation from
that trend is a worrying development for investors who are
bullish on gold, as it suggests
metal prices might not keep
rising as interest rates increase.
It also is concerning bullish
investors that gold, a haven
during market turbulence, is
struggling despite recent stock
slides on worries about trade
disruptions and a decline in
long-term bond yields.
While both should be positive for gold, prices fell 1.3% to
$1,324.20 a troy ounce Wednesday in a second straight session
of declines. That creates uncertainty about gold’s ability to
sustain this year’s gains.
“As soon as angst leaves the
market on something like
trade or geopolitical tensions,
then gold begins to accommo-
Gold-mining stocks have fallen this year, even as the metal has climbed higher.
Some large gold miners have
fared better than others.
Percentage change since 2016
Percentage change since 2016
22%
Newmont Mining
20
18
Barrick Gold
20
16
Gold
14
10
12
0
10
–10
8
6
–20
4
NYSE Arca
Gold Miners
Index
2
–30
–40
0
2017
’18
2017
’18
The VanEck Vectors Gold Miners ETF had
two straight months of money inflows.*
Investors have favored other commodities
such as cobalt, copper and oil.
Stocks have fallen recently after an impressive
run, but that hasn't led to a big jump in gold.
Monthly inflows/outflows
Percentage change since 2016
Percentage change since 2016
Cobalt
$1.0 billion
Copper
Oil
MSCI AC World excluding U.S.
200%
30
150
25
125
0
–0.5
100
20
75
15
50
10
25
–1.0
5
0
–25
–1.5
Jan. 2017
June
Jan. ’18
0
2017
’18
2017
*Data through Tuesday
Note: Cobalt price is based on LME three-month ask contract.
Sources: WSJ Market Data Group (gold, copper, oil); FactSet (fund flows, stocks, indexes); Thomson Reuters (cobalt)
date the fact that we’re in a
tightening cycle,” said James
Steel, chief precious metals analyst at HSBC.
Higher interest rates tend to
buoy Treasury yields and make
gold less attractive by comparison. The dollar has been rebounding, which has cooled
some optimism for gold bugs,
S&P 500
35%
175
0.5
analysts said. A stronger dollar
makes commodities denominated in the currency more expensive for overseas buyers.
Gold miners have underperformed despite a strong
fourth-quarter earnings season
and upbeat 2018 projections.
One reason is that some of the
companies still aren’t generat-
ing as much cash as miners of
other metals such as copper,
analysts said.
In 2017, gold prices had
their best year since 2010, allowing many miners to repair
their balance sheets. Barrick
Gold, the world’s largest producer, said it paid down $1.5
billion in debt, exceeding its
’18
THE WALL STREET JOURNAL.
target, while Newmont Mining
Corp. reported an 8% rise in
production from a year earlier.
But the companies still haven’t caught up in free cash
flow relative to market value, a
commonly used metric for
evaluating performance, according to Citigroup research.
“It takes some momentum
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Tesla Is Running Short on Time
Tesla will soon need
money again. The trouble is,
raising it suddenly looks a
lot more challenging.
Moody’s Investors Service
downgraded Tesla’s debt on
Tuesday, citing persistently
negative cash flow and continued production issues
with the Model 3 sedan.
Moody’s is keeping a negative outlook on the credit
due to “the likelihood that
Tesla will have to undertake
a large, near-term capital
raise in order to refund maturing obligations and avoid
a liquidity shortfall.”
Tesla’s bonds due in 2025,
issued just last summer,
were quoted near 86 cents
on the dollar on Wednesday.
Meanwhile, the stock is
down 28% in about a month,
making equity more expensive. There are numerous
reasons that Tesla’s magic
touch with the capital markets is fading rapidly.
For starters, Tesla’s financial statements paint an
alarming picture of the
group’s long-term viability.
Tesla had $3.4 billion in cash
and equivalents at the end of
Goldcorp
30%
Tailspin
Wednesday
257.78
t17.2% YTD
Tesla share price
$350
325
300
275
250
January
February
March
THE WALL STREET JOURNAL.
Source: WSJ Market Data Group
2017 and raised an additional $550 million from
bonds backed by lease payments in February. Not all of
that is available for spending. Mostly refundable customer deposits topped $850
million at last count.
Tesla burned more than
$3.4 billion last year in free
cash, defined as operating
cash flow less capital expenditures. If that pace were to
keep up, Tesla would run out
of its usable cash before this
year ends. Worse still, there
is reason to believe the figure on free cash burn was
understated due to the unusual treatment of solar energy-related payments and a
cut in working capital that
will be hard to repeat. Suppliers on the other side of
that working-capital equation won’t be comfortable if
Tesla can’t meet its forecast
production rate of 2,500
Model 3 cars a week by the
end of the first quarter.
Production issues are only
one part of the problem. The
Model 3 doesn’t seem to be
in as high demand as Chief
Executive Elon Musk once
promised investors. Analysts
at Bernstein said in a research note last week that
fewer than 30% of customers
who have been invited to
take delivery of the Model 3
have done so.
Meanwhile, the company
has racked up about $10 billion in long-term debt and
has $23 billion in total liabilities. To survive in the long
term, Tesla must stop overpromising and to scale back
its ambitions to goals it can
achieve. Right now, though,
it needs more money.
Debt isn’t a practical solution given recent bondholder
losses. An equity raise is still
possible, but the recent selloff across the tech sector
won’t help—nor will the unsettling news about the
Model 3. If next week’s delivery update is worse than
feared, the odds of keeping
the lights on through this
year will get a lot longer.
—Charley Grant
OVERHEARD
Just when you thought
they were out…
A New Jersey landmark of
sorts, the Satin Dolls gentleman’s club in Lodi, had been
threatened since 2011 with a
loss of its liquor license,
which would have taken
some of the spark out of its
live entertainment. The club,
whose exterior is known to
fans of the HBO series “The
Sopranos” as the Bada Bing,
was finally shut down.
The fictional Tony Soprano
got up to no good within its
confines. New Jersey state
officials alleged years ago
that the man who ran the actual establishment, Anthony
“Tony Lodi” Cardinalle, was a
convicted racketeer and associated with the Genovese
crime family so he couldn’t
own a liquor license. The club
stayed open anyway until December 2017. According to
Northjersey.com, Satin Dolls
reopened two weeks ago under new management. Mr.
Cardinalle has no involvement
whatsoever—other than collecting rent, as he still owns
it.
Don’t Get Too Alarmed About This Banking Warning Sign
A crisis-era red light is
flashing and provoking old
fears about banks. But the
world has changed a lot
since 2008. This signal no
longer means banks are
struggling to find cash.
The basic cost of money
lent between banks has seen
a sharp rise over recent
weeks. In the U.S., the cost to
borrow over three months
has risen much faster than
the Federal Reserve has
raised interest rates.
Libor, this measure of how
much banks charge to lend to
each other, is the rate that
shot up during the crisis
when a complete failure of
trust between banks froze
the money markets.
Safety Switch
Total assets in money-market
funds by type
$2.5 trillion
2.0
1.5
1.0
0.5
0
2015
Government
Prime
’16
’17
Source: Haver Analytics
However, there are several
prongs to Libor’s recent rise.
One is underlying interestrate raises; another is an expected flood of U.S. Treasury-bill selling.
Then there is the cost of
short-term borrowing in
commercial-paper markets,
which is where people get
worried because banks use
these for some of their funding.
Some point to the shrinking investor base for socalled prime money-market
funds, which are key buyers
of commercial paper. However, outflow isn’t as damaging as it seems. Prime money
funds haven’t made their biggest cuts in holdings of commercial paper. Instead they
have pulled much more out
of certificates of deposit.
In fact, the commercialpaper market hasn’t shrunk
much overall since the end of
2015—but crucially it has
shrunk since late January
when U.S.-dollar Libor has
seen its most dramatic rises.
Domestic and foreign issuance of financial sector commercial paper also has
shrunk in this time, indicating banks are tapping this
channel for less funding.
Within this, foreign banks’
U.S. arms also have cut commercial-paper issuance,
which seems to rule out another theory: that the rate
rise is because foreign banks
are raising more funding onshore to avoid being caught
by some of last year’s taxlaw changes, designed to
stop companies relocating
revenues to low-tax jurisdictions.
For banks everywhere, the
2008 crisis was a brutal lesson in the dangers of shortterm funding. The share of
Deutsche Bank’s marketbased funding that has to be
repaid in a year or sooner
was down to 38% at the end
of 2017 from 52% in 2013.
Barclays cut short-term market funding to 36% from 44%
over the period.
If Libor keeps rising that
will prove a problem for indebted companies and
households whose interest
costs are linked to it. If defaults rise, that would lead to
pain for lenders too. But for
banks’ own funding, this red
light no longer signals imminent danger. —Paul J. Davies
to get people to come back to
a sector that has been beaten
as badly as mining has,” said
Matt Badiali, research analyst
at investment research firm
Banyan Hill Publishing.
Mr. Badiali said he spoke at
a convention in Toronto this
month, pointing out that gold
miners are cheap following a
yearslong slump.
“This crowd was so mad,” a
sign that sentiment needs to
improve before the sector’s
outlook can brighten, he said.
Sentiment for gold miners
has been negative, while investors have largely remained
positive on the broader stock
market and been drawn to
other commodities, from cobalt to oil. “Speculative money
has other places to go,” Mr.
Badiali said.
Still, some think gold’s
climb will continue as money
managers seek hedges against
inflation and market swings,
eventually leading to better
performance by the beatendown miners of the yellow
metal.
Gold futures are still 30%
below their 2011 all-time highs
even after a 14% gain last year,
and the VanEck Vectors Gold
Miners ETF is almost 70% below its 2011 record.
Bouts of volatility have
boosted the exchange-traded
fund, which recorded inflows
in six straight sessions
through Tuesday. And some
select gold miners such as
Newmont, which is up 13%
since the start of last year,
have attracted investor interest by demonstrating future
production will be steady.
But others think the goldmining sector will have to
demonstrate more consistency
to close the gap on gold.
“It’s in a very tough spot,”
said Mark Stoeckle, CEO and
senior portfolio manager of
Adams Funds. “What some
people are doing is assuming
that because [mining stocks
are] beaten up, they will come
back—not necessarily.”
WSJ.com/Heard
EV Maker
BYD Has a
Rough Road
China, electric vehicles
and Warren Buffett have
made BYD an investor darling for years, but it is struggling to stay in the fast lane.
Shares of the Chinese car
maker plunged 11% Wednesday after it said it expects
net profit to slump 75% to
92% this quarter. The dive is
mostly due to Beijing’s decision to cut subsidies for new
energy vehicles by 30%—at
least until June, when it will
bring in a new, stricter regime. Subsidies accounted
for nearly one-quarter of
BYD’s pretax profit last year.
BYD will likely have to
clear out some older models
at discounted prices. Beijing’s new rules aim to encourage car makers to make
better electric cars with longer ranges and higher energy
density, meaning BYD may
have to lift investments.
BYD faces another problem: Its rivals are catching
up. BYD sold 15% more new
energy vehicles last year
than a year before, but the
whole Chinese market grew
by 53%. Conventional auto
makers like BAIC Motor and
Geely have jumped into the
market. Local giant Contemporary Amperex Technology has overtaken Panasonic as the world’s largest
EV-battery supplier.
BYD has thrived for years
as a unique electric-vehicle
play in China, but it was
never a pure play: 40% of
profits came from handset
components in 2017 and it
still sells quite a lot of gasoline-powered cars. Yet it
fetches 21 times forward
earnings, while car makers
like BAIC are trading at single-digit multiples.
As investors now have
more ways to bet on the
world’s largest EV market,
BYD may shed its premium.
—Jacky Wong
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