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The Wall Street Journal - March 30, 2018

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DJIA 24103.11 À 254.69 1.1%
NASDAQ 7063.44 À 1.6%
WSJ.com
FRIDAY, MARCH 30, 2018 ~ VOL. CCLXXI NO. 74
* * * * * *
STOXX 600 370.87 À 0.4%
10-YR. TREAS. À 10/32 , yield 2.741%
OIL $64.94 À $0.56
GOLD $1,322.80 g $1.40
Deal with health
insurer would mark
new direction for
world’s biggest retailer
Business & Finance
almart is in preliminary
talks to buy insurer
Humana, a deal that would
mark a dramatic shift for the
retailer and the latest in a recent flurry of major mergers
in health-care services. A1
W
Trump lashed out at Amazon over its business practices and economic impact,
escalating his long-running
feud with the company. A1
Microsoft is downgrading
the role of Windows as it reorganizes around its cloudcomputing operations and Office productivity business. B1
Major U.S. stock indexes
posted gains. The Dow
added 254.69 points to
24103.11 but was down 2.5%
for the quarter. B11, B12
Tesla is recalling about
123,000 Model S sedans after
discovering that corrosion
of certain bolts could lead to
a power-steering failure. B1
Walmart Inc. is in preliminary talks to buy insurer Humana Inc., according to people familiar with the matter,
a deal that would mark a
dramatic shift for the retail
behemoth and the latest in a
recent flurry of major mergers in health-care services.
It isn’t clear what terms the
companies may be discussing,
and there is no guarantee they
will strike a deal. If they do,
the deal would be big: Humana
currently has a market value
of about $37 billion.
It also would be Walmart’s
largest deal by far, eclipsing
By Dana Mattioli,
Sarah Nassauer
and Anna Wilde Mathews
its 1999 acquisition of the U.K.
retailer Asda Group Ltd. for
$10.8 billion. Walmart, which
in addition to being the
world’s biggest retailer is also
a major drugstore operator,
has a market value of about
$260 billion.
The two companies are discussing a range of options, including an acquisition, one of
the people familiar said.
Shares of Humana surged
10% to $297 in after-hours
trading after The Wall Street
Journal first reported the
talks. Walmart shares slipped
1% to $88.10 in late action.
Should there be a deal—and
should regulators and shareholders bless it—the move
would transform Walmart into
one of the nation’s largest
health insurers. It would im-
merse the company in a complicated industry, one that
continues to evolve eight
years after the Affordable Care
Act was enacted and as Washington remains deeply divided
over health-care policy.
The talks come as healthservice providers are rapidly
pairing off and retailers—particularly pharmacy chains—are
looking to diversify and bulk
up in the face of the competitive threat from e-commerce
giant Amazon.com Inc.
In December, CVS Health
Corp. agreed to buy Humana
rival Aetna Inc. in a $69 bil-
Prime Growth
$800B
Amazon.com’s transformation into a $178 billion-ayear business is built on an online retail operation
that has given the U.S. Postal Service a lot of
packages to deliver.
Annual revenue
2017
$177.9B
Amazon’s estimated share of 2017
U.S. e-commerce Total U.S. retail
43.5%
600
3.9%
Vanguard faces a perception problem as customers
say its size and record inflows
are causing service issues. B1
Consumer spending in
the U.S. rose at a muted
pace in February for the
second month in a row. A2
Barclays agreed to pay
$2 billion in civil penalties to
resolve Justice Department
claims of fraud in the sale of
mortgage securities. B10
A law firm hired by the
family of a woman who died
after being struck by a selfdriving Uber vehicle said the
issue “has been resolved.” B4
A judge ruled that coffee in
California must carry a cancer warning, a blow to Starbucks and other retailers. A3
World-Wide
North and South Korea
failed to agree on whether
the North’s nuclear program would be a part of
talks between their leaders, raising fresh doubts
about Kim’s willingness to
give up the weapons. A1
Russia will expel U.S.
and European diplomats in
response to measures taken
against Moscow over its alleged role in the poisoning
of a former double agent. A6
Saudi Arabia’s crown
prince called on the international community to squeeze
Iran economically and politically to avoid a military confrontation in the region. A16
The IRS audited 1 in about
160 individual tax returns in
2017, the lowest since 2002
and the sixth straight year
that audits have declined. A2
Sessions has rejected calls
to appoint a second special
counsel to investigate the handling of probes involving Clinton and a Trump ex-aide. A5
FirstEnergy is asking the
administration to intervene to
keep struggling nuclear and
coal-fired power plants running across the Midwest. A5
Prosecutors ordered
former French President
Sarkozy to stand trial on
charges of influence-peddling and corruption. A7
Egypt’s Sisi is set to be
re-elected after a campaign
in which major opponents
were jailed or sidelined. A16
Students at public colleges in more than half of
all U.S. states are paying
more in tuition than the
government contributes. A3
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1
Technology............... B4
U.S. News............. A2-5
Weather................... A11
World News. A6-7,16
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
EURO $1.2301
YEN 106.44
Walmart in Talks to Buy Humana
What’s
News
CONTENTS
Business News B3,5-6
Crossword.............. A10
Heard on Street. B12
Life & Arts....... A10-11
Mansion.............. M1-12
Markets............. B11-12
HHHH $4.00
lion deal aimed at allowing the
drugstore-chain to capture
more of what consumers
spend on health care. In
March, health insurer Cigna
Corp. agreed to buy Express
Scripts Holding Co., the biggest administrator of prescription-drug benefits in the U.S.,
for $54 billion.
Walmart has a vast pharmacy business, with locations
in most of its roughly 4,700
U.S. stores and in many of it
Sam’s Club warehouse locations. Humana is a Medicarefocused insurer that could
Please see DEAL page A5
Koreas’
Nuclear
Summit
Agenda
In Limbo
BY ANDREW JEONG
AND FELICIA SCHWARTZ
400
ing into traditional brick-andmortar retail, as seen in last
year’s acquisition of grocer
Whole Foods Market—has
fueled concern about its increasing clout.
Brands worry about its
shopping dominance and its
sale of its own private-label
goods, while investors fear the
potential for regulation targeting the company. Those concerns crystallized this week as
Please see AMAZON page A4
SEOUL—North and South
Korea failed to agree on
whether the North’s nuclear
program would be a part of
talks between their leaders,
raising fresh doubts about Kim
Jong Un’s willingness to give
up the weapons.
A statement by both Koreas
on Thursday didn’t refer to
the North’s nuclear arsenal, or
whether it would be discussed
at a summit between Mr. Kim
and South Korean President
Moon Jae-in, set for April.
That meeting is to precede
a planned encounter between
Mr. Kim and President Donald
Trump, agreed to after the
North Korean leader said he
was open to denuclearization
of the Korean Peninsula and
would halt missile tests during
any negotiations.
“Maybe it’ll be good and
maybe it won’t,” Mr. Trump
said during an appearance in
Ohio. “If it’s no good, we’re
walking, and if it’s good, we
will embrace it. But it’s going
to be very interesting.”
Mr. Trump also warned he
might hold up a trade agreement with South Korea “until
after a deal is made with
North Korea,” adding: “You
know why? Because it’s a very
strong card.”
Please see KOREA page A6
Amazon helps buoy postal
service............................................ A4
Dow and S&P 500 rise, but
end quarter lower.................. B11
All smiles in new national
security team............................ A4
Trump suggests delay in
trade talks with Seoul.......... A6
U.S. Postal Service revenue
$30B
First class mail
20
Packages*
1997
10
200
$150M
0
2009
’17
*Includes Priority Mail; percentage of Amazon-related packages isn't disclosed.
Sources: the company; eMarketer (Share of retail, e-commerce); U.S. Postal Service (USPS revenue); FactSet (market cap)
Market capitalization
May 1997 Initial public offering
2018
Trump Steps Up Feud With Amazon
BY LAURA STEVENS
RICHARD RUBIN
AND
President Donald Trump
lashed out at Amazon.com Inc.
over its business practices and
economic impact, escalating
his long-running feud with the
e-commerce giant at a time of
intensifying political and public
agitation over the power of big
technology companies.
In a Thursday morning
tweet, Mr. Trump took aim at
Amazon’s role in people’s everyday lives, from where they
shop to the taxes the company
collects from sales to how it
delivers packages to them.
It was the latest in a line of
attacks the president has levied
against the online retailer since
before his election, a series that
also has targeted Amazon’s
chief executive, Jeff Bezos, who
owns the Washington Post.
Mr. Trump, who has carried
on a fight with the Post and
other media companies, has
tweeted more than a dozen
times mentioning Amazon, frequently suggesting that the
company should pay more in
taxes. He pressed that case
again Thursday, adding that
the company is taking advantage of the U.S. Postal Service.
“They pay little or no taxes
to state & local governments,
use our Postal System as their
Delivery Boy (causing tremendous loss to the U.S.), and are
putting many thousands of retailers out of business!” Mr.
Trump tweeted.
An Amazon spokeswoman
declined to comment about the
tweet. Amazon says it now collects sales taxes on its own inventory in all 45 states that
have such a tax, and has voluntarily started collecting taxes in
some municipalities.
Amazon’s rapid growth from
an online bookseller to a dominant provider of cloud services
and smart devices—and extend-
Russia
Counters,
Expelling
Envoys
Exxon Designed
Deal to Skirt
Scrutiny
COLD FRONT: Police
outside the U.S.
consulate general
building Thursday in
St. Petersburg,
which Moscow is
closing in response
to the West’s
expulsion of Russian
diplomats earlier
this week. A6
Oil giant was excited about Africa prospect
but worried about U.S. laws
Negotiators for Exxon Mobil Corp., gathered in a London hotel room, faced a problem. The government of
Liberia suspected that oil
rights the energy giant coveted were tainted by corruption.
By Scott Patterson,
Bradley Olson
and James V. Grimaldi
It was the winter of 2011,
and crude-oil prices were
surging. Exxon and then-Chief
Executive Rex Tillerson were
battling rivals to win access
to fresh deposits around the
globe. They wanted a deal.
The drilling rights the
company sought in Liberia,
however, appeared to be
linked to former officials from
the West African nation, according to internal Exxon documents reviewed by The Wall
Street Journal and people familiar with the negotiations. An Exxon presentation
from the London meeting indicated the company had
“concern over issues regarding U.S. anticorruption laws.”
An idea took shape. A Canadian company would
buy the rights from a Liberian
oil operator whose ownership
was murky. Then Exxon would
buy a controlling stake in the
project from the Canadian
outfit, according to the London presentation, documents
outlining the deal and people
familiar with the matter.
Exxon completed the deal for
$120 million in 2013.
There is a growing body of
U.S. and European laws aimed
at stamping out corruption
around the world, and they
have been aggressively enforced. The Exxon transaction
shows the extent to which
companies are structuring
deals to try to minimize the
risks of government scrutiny.
This account of what Exxon
learned about potential red
Please see EXXON page A8
ANTON VAGANOV/REUTERS
Zoos Seek Affection for Overlooked Species
i
i
i
‘Ambassadors’ are popular, but not all draw crowds
BY CLARE ANSBERRY
PITTSBURGH—For $40, a
visitor can spend 30 minutes,
one on one, with Willy, a Southern three-banded armadillo,
who runs around in circles in a
small fenced enclosure, sniffing
and eating crickets and worms
at the National Aviary in Pittsburgh.
On a recent day, Willy had
only one visitor. His neighbor,
Vivien, a two-toed sloth, was
booked solid for the day at $150
per half-hour.
Both are animal “ambassa-
dors”—tasked with public relations for their entire species.
Some are more successful than
others. Willy works hard, but
doesn’t always draw the crowds
Please love me
like sloths, owls or penguins—
especially popular celebrities as
namesakes of the city’s hockey
team.
“They are definitely overlooked,” Robin Snider says of
little armadillos, which she
finds fascinating.
Willy lives at the aviary with
fellow armadillo ambassador,
Wonka. Among their charms:
the ability to roll up completely
in a ball the size of a cantaloupe, something the other 20
armadillo species can’t.
Ms. Snider, of Pittsburgh,
Please see ZOOS page A8
.
A2 | Friday, March 30, 2018
THE WALL STREET JOURNAL.
* *
U.S. NEWS
Americans Hold Off on Spending Extra Tax Dollars
BY HARRIET TORRY
WASHINGTON—Americans
last month saved their extra
money from the recent tax
overhaul rather than spent it,
which likely held back economic growth in the first quarter.
Consumer spending rose at
a muted pace in February for
the second month in a row, despite gains in household incomes both before and after
taxes.
Personal income, reflecting
Americans’ pretax earnings
from salaries and investments,
rose 0.4% in February. Meanwhile, personal-consumption
expenditures, a measure of
household spending on everything from dishwashers to
books, increased at a slower
pace, rising a seasonally adjusted 0.2% in February from
the prior month, the Commerce Department said on
Thursday.
Consumers have reined in
their spending so far this year.
The 0.2% increase in spending
in January and February reflects a pullback from a 0.5%
increase in December and 0.7%
in November.
“Consumers are dialing
back on their spending spree
of last year,” said Robert Frick,
Fed’s Harker Lifts
Outlook for Rates
PHILADELPHIA—Federal Reserve Bank of Philadelphia President Patrick Harker said he expects officials will need to raise
short-term interest rates a total
of three times this year, up from
his earlier projection of two because of stronger inflation.
Fed officials voted unanimously last week to raise their
benchmark federal-funds rate by
a quarter percentage point to a
range between 1.5% and 1.75%,
and they penciled in two more
such increases for this year.
“We saw some firming of
corporate economist with Navy
Federal Credit Union, adding,
“Americans may be feeling
stretched by the credit they
took on last year, and are putting more money into savings.”
With incomes up and
spending relatively weak in
February, Americans saved
more. The personal saving rate
in February was 3.4%, up from
3.2% in January and the highest rate since August.
Consumer spending accounts for more than two-
inflation,” Mr. Harker said in an
interview with The Wall Street
Journal, explaining his new projection.
Updated forecasts released
last week showed Fed officials
project faster economic growth,
higher inflation and lower unemployment in coming years than
they anticipated in December.
Some Fed officials have cited
potentially stronger economic
growth from tax-policy changes
and increased federal spending.
Mr. Harker said he placed
greater emphasis on inflation
data than on fiscal policy in revising his outlook.
Inflation has firmed in recent months after a downtick
last year that defied the Fed’s
thirds of U.S. economic output
and is a key driver of economic
growth.
Sales at U.S. retailers
dropped in February for the
third month in a row. February
was also a rocky month for
stocks, with the Dow Jones Industrial Average falling about
4%.
The Federal Reserve Bank of
Atlanta estimates economic
output has expanded at a 2.4%
annual rate in the first quarter,
a slowdown from 2.9% in the
forecasts. Consumer prices rose
1.8% in February from a year
earlier, according to the central
bank’s preferred inflation gauge.
So-called core prices, which exclude volatile food and energy
categories, rose 1.6%.
“It’s more the firming of inflation that has moved me from
two to three” projected rate increases this year, he said. Mr.
Harker said he had penciled in
three rate increases for 2019, in
line with the median projection
released last week.
Mr. Harker said he expects
inflation to rise slightly above the
Fed’s 2% target in coming years.
Inflation has run below that level
for most of the past six years.
Mr. Harker said the risk of
fourth quarter and 3.2% in the
third.
Economists said that lower
outlays in early 2018 were
payback for a bumper 4% increase in inflation-adjusted
spending in the fourth quarter.
That was driven by a 13.7% increase in spending on durable
goods—expensive items like
cars and appliances—as consumers spent lavishly for the
holidays and replaced property
damaged by last year’s hurricanes.
increased trade tariffs and
other barriers presented one
source of uncertainty about current projections of the interestrate path. “Trade tariffs increase costs,” he said.
Mr. Harker said it was too
early to judge the effect of potential trade actions. An escalation in tariffs between the U.S.
and its trade partners “is a risk”
that could require higher interest rates, he said, though it
isn’t his current expectation.
Mr. Harker isn’t a voting
member of the Fed’s rate-setting committee this year, but,
like other nonvoting regional
Fed bank leaders, participates
fully in its policy meetings.
—Nick Timiraos
Still, many economists believe households have a solid
financial foundation on which
to keep spending. Unemployment has been at a low 4.1%
for the past five months, and
many Americans recently saw
the tangible impact of the $1.5
trillion tax cut signed into law
late last year. Tax withholdings
fell, increasing take-home pay.
Disposable personal income,
or after-tax income, rose 0.4%
on the month in February.
That was a moderation from
Emotions Flow at Funeral of Unarmed Man Shot by Sacramento Police
ICE Ends Policy for
Pregnant Detainees
JEFF CHIU/ASSOCIATED PRESS
The Trump administration
said it would treat pregnant immigrant women the same as
any other detainees and decide
who should be released on a
case-by-case basis. The policy
reverses an Obama-era policy
that ordered immigration officials to release pregnant women
from immigration jails in most
cases.
Philip Miller, the Immigration
and Customs Enforcement official in charge of enforcement
and removal operations, described the policy change as an
effort to align ICE practices with
presidential directives on immigration. Deputy ICE Director
Thomas Homan signed the new
directive on detaining pregnant
women in December. It replaces
a 2016 policy, also signed by Mr.
Homan, that said pregnant
women not required by law to
be detained should be released
from ICE jails.
—Alicia A. Caldwell
Audit Rate Hits Lowest Level in Years
BY LAURA SAUNDERS
The IRS audited 1 in about
160 individual tax returns in
2017, the lowest since 2002
and the sixth consecutive
year that audits have declined, as budget cuts have
reduced the number of staff
at the federal agency.
The Internal Revenue Service—which has lost nearly a
third of its enforcement employees since a 2010 peak,
when it audited 1 in 90 individual
returns—audited
0.62% of individual returns in
the fiscal year that ended
Sept. 30, according to IRS
data released Thursday.
The audit rate declined
the most for high-income
households, although they
were still audited at a higher
rate than filers of other income levels.
In 2017, the IRS audited
4.37% of returns with income
of $1 million and higher, less
than half the 9.55% audit rate
for such returns in 2015. It
marked the lowest rate of audits for that income group
since 2004, when the data
were first released. In late
2015, the Treasury inspector
general said that high earners should be an enforcement
priority for the IRS.
The audit rate for other
income groups also declined,
but not as much. For taxpayers earning less than
$200,000, the percentage of
returns audited dropped to
0.59% in 2017 from 0.76% in
2015.
Andy Mattson, a certified
public accountant at Moss
Adams LLP in Silicon Valley
with many wealthy clients,
said he has noticed the de-
Less Scrutiny
Share of tax returns that were audited,
by income group
$1 million and higher
12%
All incomes
$200,000 and higher
Under $200,000
10
8
6
4
2
0
2008
’09
’10
’11
’12
’13
’14
’15
’16
’17
Note: Figures reflect audits in each fiscal year as a percentage of returns in the prior calendar
year. The ‘$200,000 and higher’ income group includes the ‘$1 million and higher’ group.
THE WALL STREET JOURNAL.
Source: Internal Revenue Service
cline in audits of high earners. “We get far more state
audits of our clients than IRS
audits,” he said.
An IRS spokesman said the
drop in audits of high earners reflects the continuing
decline in IRS compliance
personnel. These filers often
have more complex returns
that take longer to examine
and require more highly
skilled staff. In addition, the
number of taxpayers reporting income above $1 million
rose nearly 25% between
2015 and 2017.
In 2017, IRS funding was
$11.2 billion, down nearly 8%
from its high in 2010, although the number of individual returns grew nearly
5% over the same period. For
fiscal 2018, the IRS’s funding
rises slightly, to $11.4 billion.
From a revenue stand-
Shrinking Staff
IRS enforcement personnel
25,000
20,000
15,000
10,000
5,000
0
2008
’10
’12
’14
’16 ’17
Source: Internal Revenue Service
THE WALL STREET JOURNAL.
point, filers earning over $1
million in tax year 2015 accounted for 28% of total income taxes, up from 25% in
2013, according to the latest
available IRS data. For 2015,
filers
earning
between
$200,000 and $500,000 paid
nearly 21% of the total. Filers
earning between $100,000
and $200,000 paid 22%.
The IRS’s audit statistics
don’t include the results of
document-matching requests,
which are typically generated
by computer. Such requests
ask the taxpayer to explain
discrepancies between the
tax return and information
reported by a third party like
a bank or broker. In 2017, 3.3
million cases in this program
brought in revenue of $6.6
billion, which was lower than
in the prior year, according
to IRS data.
Revenue from individual
income taxes is the single
largest source of federal receipts and has been growing
as a percentage of the total.
In fiscal 2017, it accounted
for nearly 48% of federal revenue, up from 45% a decade
earlier, according to data
from the Joint Committee on
Taxation, a nonpartisan committee of Congress with professional experts on staff.
The revenue from corporate taxes accounted for 9%
of total revenue in 2017,
down from 12% a decade ago,
the committee’s data show.
Business audits declined in
2017 for the second consecutive year. The audit rate for
all businesses dropped to
0.44% in 2017 from 0.71% in
2012, the peak for the decade, according to the IRS.
The only category of businesses for which audits
didn’t drop in 2017 was partnerships. That audit rate was
0.38% for both 2016 and
2017.
Personal-consumption expenditures, change from a year earlier
6%
5
4
3
2016
’17
’18
Note: Seasonally adjusted
Source: Commerce Department
THE WALL STREET JOURNAL.
the revised 1% month-overmonth gain in January, which
reflected the impact of tax-law
changes that reduced tax withholding.
Dustin Hill, a 31-year-old
manager at a security company in Washington, D.C., said
the extra money he has received from the tax cut has
gone toward “bills, normal
bills that may have been put
on the back burner that I’m
now able to address,” like student-loan obligations.
U.S. WATCH
IMMIGRATION
GRIEF: Stevante Clark speaks at the funeral of his brother Stephon, who was killed March 18 when officers mistook a cellphone for a
gun and fired 20 rounds. His death has sparked protests and calls for police reform in California and beyond.
Recent Easing
FLORIDA SCHOOL SHOOTING
Fan Mail, Cash Sent
To Nikolas Cruz
The suspect in the Florida
high-school shooting that killed
17 is getting letters of support
in jail including fan mail and pictures of scantily-clad women in
addition to $800 in contributions
to his commissary account.
Teenage girls, women and
men are sending letters and
photographs of themselves and
Facebook groups have been
started to discuss how to help
Nikolas Cruz, the South Florida
Sun-Sentinel reports.
Mr. Cruz, who is on suicide
watch at the Broward County
Jail, hasn’t seen any of the letters, which are opened by the
jail.
—Associated Press
COSBY TRIAL
Judge Rejects Call
For His Recusal
The judge in Bill Cosby’s sexual assault trial rejected demands Thursday from the comedian’s defense lawyers that he
step aside because his wife is a
social worker and advocate for
assault victims.
Judge Steven O’Neill said
that he is “not biased or prejudiced” by his wife’s work and
that the assertion that he
shares the same views as his
wife or has let his rulings be influenced by her profession “is
faulty, plain and simple.” Jury selection is set to begin Monday.
—Associated Press
CORRECTIONS AMPLIFICATIONS
A chart with a Page One article on Monday about General Electric Co. showed the
assets of GE Capital in billions
of dollars. The label of the
vertical axis incorrectly omitted the word billions.
For a house purchased in
2018 with a $1 million mortgage and $60,000 in annual
mortgage-interest payments
that is rented out for three
months of the year, the homeowner can deduct $48,750 in
mortgage interest under the
new tax law. And the tax savings from this rental strategy
would be $1,387.50 for someone in the 37% bracket, $1,200
for the 32% bracket and $900
for the 24% bracket. An article
about short-term rentals that
appeared Monday in the Journal Report on Wealth Management incorrectly said the
homeowner could take mortgage deductions totaling
$60,000 and would save
$5,550, $4,800 or $3,600 from
this strategy, depending on tax
bracket.
Seoul-based bitcoin exchange Youbit on Dec. 1 purchased a one-year cyber insurance policy with damage
coverage up to about $2.8 million from DB Insurance Co., a
South Korean firm. A World
News article on Dec. 21 about
a heist at Youbit incorrectly
said the damage coverage was
about $2.8 billion.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL.
Friday, March 30, 2018 | A3
* * * *
U.S. NEWS
In California’s Orange
County, officials offer
apology after residents
criticize ‘tent cities’
during challenges of getting
people off the streets: Few
communities will agree to
house them.
The question of where to
shelter the homeless is now
pitting Orange County’s 34 cities against one another, with
each arguing that temporary
homeless shelters don’t belong
there and blaming the county
for failing to tackle the problem until it was too late.
In response to a federal
lawsuit filed in January, a
judge ordered county officials
to find shelter for hundreds of
people who were cleared out
of an encampment along the
Santa Ana riverbed last month.
The county agreed to provide 30-day motel vouchers for
nearly 700 people and hoped to
move them into shelters and
other housing within the
month. Many of the motel
vouchers expire this week, and
officials aren’t sure where those
staying in the motels will go.
Shawn Nelson, an Orange
County supervisor, said the
hope was that after the judicial
order, local cities would help
the county address the crisis,
“but there are no volunteers.”
All three cities where tem-
BY IAN LOVETT
SANTA ANA, Calif.—Faced
with a growing homeless population and a federal judge’s
order to find shelter for hundreds of people living on the
streets, Orange County lawmakers recently devised a
plan: Open as many as three
temporary shelters across this
coastal county.
It didn’t last a week.
On Tuesday, county supervisors scrapped the plan for the
shelters, following days of furious blowback from residents
who accused them of trying to
erect “tent cities” that would
turn upscale neighborhoods
into skid rows.
As homeless populations
continue to climb in cities
along the West Coast—fueled
by the dwindling stock of affordable housing—the battle in
Orange County, a wealthy enclave south of Los Angeles,
demonstrates one of the en-
FREDERIC J. BROWN/AGENCE FRANCE-PRESSE/GETTY IMAGES
Homeless
Shelter Plan
Is Scrapped
In Southern California, Orange County workers cleared a homeless encampment beside the Santa Ana River in Anaheim last month.
porary shelters had been proposed—Irvine,
Huntington
Beach and Laguna Niguel—
threatened to file their own
lawsuits against the county if
the plan were enacted, arguing
that it placed an unfair burden
on their communities.
On Tuesday, more than
1,000 protesters surrounded
the county’s Board of Supervisors meeting in Santa Ana—
the latest in a series of heated
meetings on the issue this
month—waving signs that
read: “No Tent City in Irvine”
and “No Drugs Near Our
Schools.”
During the meeting, officials
from cities throughout the
county argued that they, too,
shouldn’t host temporary shelters, citing the proximity of
proposed sites to public parks,
schools, day-care facilities and
libraries.
“We’ve taken the brunt,”
said Valerie Amezcua, president of the school board in
Santa Ana, one of the less affluent cities in the county,
where homeless encamp-
ments already dot sidewalks.
“Our kids can’t use the libraries. Our kids go to school
in the morning, and somebody
is sleeping in front of our
schools,” Ms. Amezcua said at
the meeting.
Christina L. Shea, the mayor
pro tem of Irvine, said in an
interview that Orange County
had waited too long to deal
with the crisis. “Because the
county has chosen to close
their eyes and not solve the
problem, all of a sudden
they’re saying, ‘Just build a
tent here next to $1 million
homes,’” she said.
Ultimately, county officials
not only backed away from the
plan they had supported last
week, but also apologized for
it.
“I’m sorry—we’re all sorry,”
said Todd Spitzer, a county supervisor who represents Irvine. “We need to put roofs
over people’s heads, not tents.”
County and city officials
will meet with the federal
Judge David O. Carter next
week to discuss options.
Matzo Wants to Be So Much S’More Students’ Share of
Bakers and chefs strive to give the Passover holiday staple a culinary makeover
BY CHARLES PASSY
BY DOUGLAS BELKIN
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2)
Adrienne Sherman expects
more than 20 guests at her
home for the elaborate Seder meal that marks the
start of Passover. She will
prepare dishes ranging from
chicken soup to brisket to
her famous carrot soufflé.
But at some point during
the eight-day holiday, Ms.
Sherman will break out the
matzo and marshmallows.
Ms. Sherman, of Bridgewater, N.J., uses a s’moresmaking kit, which also includes chocolate, from
Manischewitz Company,
called “S’more Matzo.”
“Just plain matzo gets
old,” she said.
Matzo isn’t your typical
epicurean delight. In its purest form, the unleavened
bread, central to the Jewish
holiday of Passover, consists
of nothing more than flour
and water. The resulting
product, known as the
“bread of affliction,” has
been compared with everything from toasted cardboard to hardtack.
Enterprising outfits, bakers and chefs are trying to
reverse tradition and give
the holiday staple a culinary
makeover. Some are using
matzo in unexpected ways,
trying to make it a yearround snack food like potato
chips or slathering it with
everything from garlic to
toffee. Not all the matzo
products are kosher for
Passover.
At the Naga Bakehouse, a
family-run bakery in the Vermont town of Middletown
Springs, matzo gets the artisan treatment. Husband-andwife founders Doug Freilich
and Julie Sperling use locally sourced wheat in their
flour and bake their matzo—
or “Vermatzah,” as they call
it—in a wood-fired oven.
Pieces are wrapped in
parchment paper and tied
with yarn before being
Matzo Project co-founder Kevin Rodriguez, above, says his Brooklyn, N.Y., company’s recipe allows
for a lighter matzo than the traditional version. Below, he holds a bag of the company’s matzo chips.
boxed. The taste is a bit
nutty, Ms. Sperling said,
with a “hint of the fire.” The
price—$18 for six pieces—
puts Vermatzah in a different category from standard
matzo in supermarkets,
which often sells for a few
dollars per box.
Heidi Silverstein, a retiree who lives in Stamford,
Conn., has been buying Vermatzah for the past several
years for her Passover table.
“It actually has taste,” she
said, noting it has an earthy
flavor.
The Matzo Project, a
Brooklyn, N.Y., company
launched in 2016, makes its
gourmet version with the
addition of sea salt and sun-
flower oil in the dough. The
recipe allows for a lighter
matzo than the traditional
version, said company cofounder Kevin Rodriguez.
The boxes show a caricature
of a Jewish grandmother
with the caption: “Would it
kill you to try something
new?”
Hoping for year-round appeal, the company also has a
line of matzo chips, packaged like other bagged
snacks, in flavors including
salt and cinnamon sugar.
Manischewitz, which bills
itself as the largest marketer
of kosher foods in North
America, markets its s’mores-making kit. “Once you
melt the marshmallows and
the chocolate, you don’t miss
the graham crackers that
much,” said Shani Seidman,
Manischewitz’s marketing
director.
Rabbi Moshe Elefant,
chief operating officer of OU
Kosher, an agency that certifies kosher products, said:
“Just because it’s the bread
of affliction doesn’t mean
you have to be afflicted
when you eat it.”
California Judge Rules for Coffee Warning
BY SARA RANDAZZO
LOS ANGELES—Coffee in
the state of California must
carry a cancer warning, a
judge here ruled, in a blow to
Starbucks and other retailers
which had argued that a state
law meant to protect consumers shouldn’t apply to them.
The
proposed
ruling
Wednesday from Los Angeles
Superior Court Judge Elihu
Berle found that Starbucks and
other companies failed to
prove their case that a chemical found in coffee posed no
Public Tuition Rises
significant harm.
A nonprofit called the
Council for Education and Research on Toxics sued coffee
sellers in 2010, claiming the
presence of acrylamide, a
chemical created during the
roasting process, is carcinogenic and requires a warning
under the state law known as
Proposition 65.
After losing an earlier
phase, the companies argued
at a trial last fall that they
should be allowed to come up
with an alternative risk level
for acrylamide in coffee.
Judge Berle said in the ruling the companies “did not offer substantial evidence to
quantify any minimum amount
of acrylamide in coffee that
might be necessary to reduce
microbial contamination or
render coffee palatable.” He
also found the defendants’ arguments that coffee itself has
some health benefit “was not
persuasive.”
A Starbucks spokeswoman
referred a request for comment to the National Coffee
Association, which said the
coffee industry is considering
legal options. “Cancer warning
labels on coffee would be misleading,” the association’s
president and chief executive,
William Murray, said. “This
lawsuit has made a mockery of
Prop 65, has confused consumers, and does nothing to improve public health.”
Under Proposition 65, businesses must warn about the
presence of any of more than
900 chemicals on a list of
those known to the state of
California to cause cancer,
birth defects or other reproductive harm.
For the first time, students
in more than half of all U.S.
states are paying more in tuition to attend public colleges
or universities than the government contributes.
The privatization of public
education has been under way
for decades but this inflection
point was hastened by deep
cuts states made to their
higher-education appropriations after the 2008 recession.
Funding levels since then have
only tepidly recovered, according to a report released Thursday by the State Higher Education
Executive
Officers
Association.
The recovery has been hampered by increased demands
states face to fund Medicaid,
the state-federal health insurance program for the poor and
disabled, and rising public-employee health and retirement
costs. States haven’t increased
tax revenue to keep up with
those rising costs.
The average annual tuition
for a four-year public college
or university was $6,572 in
2017, up from $4,784 in 2008,
adjusted for inflation.
Public spending per student
declined 24% between 2008
and 2012. Appropriations began ticking back up in 2012,
but their recovery has been
uneven across the country.
“After the Great Recession,
appropriations
increased
around 4%, but that percentage is going down now, and it
seems now we’re coming to
the end of the recovery,” said
Sophia Laderman, co-author of
the report.
In 2016, students in 24
states paid more than half of
the cost of their education at
public schools. In 2017,
through a combination of budget cuts and tuition increases,
students in Kentucky, Louisiana, Oklahoma and Mississippi
also passed that mark, according to the report. The average
Footing the Bill
States spend less on each
university student than they did
before the 2008 recession, even
as tuition fees have risen.
State educational appropriations
Average net tuition
$10,000
7,500
5,000
2,500
0
2000 ’04
’08
’12
’16
Note: Constant 2017 dollars adjusted by
SHEEO Higher Education Cost Adjustment.
Source: State Higher Education Executive
Officers
THE WALL STREET JOURNAL.
Acceptance Rates
Fall at Harvard, Ivies
Harvard hit a new low
this year—in terms of its acceptance rate.
The university admitted
4.6% of applicants, or 1,962
students for the class set to
begin this fall. Last year, it
admitted 5.2% of applicants.
The eight campuses making up the Ivy League notified
applicants on Wednesday
evening about who will make
up their first-year undergraduate class come fall. Seven of
the eight posted record-high
application numbers, while
Dartmouth had its highest
number in five years; seven
recorded their lowest-ever acceptance rates, with Yale tying with its prior record.
Many of the applicants
looked perfect on paper. At
Princeton, more than 14,200
of the 35,370 applicants had
a 4.0 grade point average.
Yale officials were “impressed
and humbled” by the volume
of qualified candidates, said
Jeremiah Quinlan, dean of undergraduate admissions.
The elite schools noted
they are becoming less elitist,
with generous financial-aid
packages to lure diverse candidates: More than 20% of
Harvard’s admissions and 23%
of Princeton’s are eligible for
federal Pell grants aimed at
low-income students.
—Melissa Korn
amount that states pay per
student nationwide, however,
remains above tuition costs.
During economic downturns, public universities traditionally have been hit harder
by state funding cuts than
other sectors, because the
schools can offset cuts with tuition increases. As of last year,
states still allotted nearly
$2,000 less a student than
they did in 2001 and $1,000
less than they did in 2007, according to the report.
“It’s really been a double
whammy,” said Andrew Carlson, the report’s co-author.
“We had two recessions back
to back.”
Only six states have reached
or surpassed their prerecession crests in 2008; 19 states
remain at least 20% below
their prerecession level.
Higher education is the
third-largest budget outlay in
state spending from state and
local tax sources, behind K-12
and Medicaid, according to the
report. In fiscal 2017, 9.9% of
state general funds were allocated to higher education,
down from 12.9% in 1995.
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THE WALL STREET JOURNAL.
U.S. NEWS
All Smiles in New National Security Team
BY NANCY YOUSSEF
WASHINGTON—Defense
Secretary Jim Mattis met incoming national security adviser John Bolton at the steps
of the Pentagon on Thursday and jokingly told him that
he had heard Mr. Bolton was
the “devil incarnate.”
“And I wanted to meet
you,” Mr. Mattis said as the
two men walked in the building, drawing a chuckle out of
Mr. Bolton.
It was an unusual start for
two men who are strangers to
each other and will be the
nexus of the U.S. strategy
heading into potential talks
with North Korean leader Kim
Jong Un, the Iran nuclear deal
and the continuing war
against Islamic State.
As Messrs. Bolton and Mat-
tis met, President Donald
Trump suggested to a crowd
in suburban Cleveland that the
U.S. would withdraw its more
than 2,000 troops from Syria.
The forces have been working
with local fighters to defeat
Islamic State, which remains
lodged in the eastern half of
that country.
“We will be coming out of
Syria, like, very soon,” Mr.
Trump said. “Let the other
people take care of it now.”
Mr. Mattis is one of the last
remaining members of Mr.
Trump’s original national security team, while Mr. Bolton
is a decadeslong Washington
veteran who advocated for the
2003 U.S. invasion of Iraq,
which Mr. Trump has criticized. Last week, the president
announced that Mr. Bolton
would succeed Army Lt. Gen.
H.R. McMaster, becoming the
third national security adviser in 14 months.
Messrs. Bolton and Mattis
disagree on key national security issues. Mr. Bolton has said
he supports pre-emptive
strikes in North Korea and
Iran, while Mr. Mattis has said
that a war with North Korea
would be “tragic on unbelievable scale.” He also supports
the U.S. staying in the Iran
deal, which the U.S. struck
with that country and five
other world powers.
The Pentagon said the purpose of Thursday’s meeting
was to build a “productive
partnership” but offered no
details on what the two men
discussed.
Mr. Bolton stayed nearly
two hours at the Pentagon,
meeting first with Mr. Mattis
and then with Marine Corps
Gen. Joseph Dunford, chairman of the Joint Chiefs of
Staff.
Just two days earlier, Mr.
Mattis dismissed fears that he
and Mr. Bolton wouldn’t get
along.
“I hope that there are some
different worldviews. That’s
the normal thing you want,
unless you want groupthink,”
Mr. Mattis said. “We’re going
to sit down together. I look
AARON P. BERNSTEIN/REUTERS
Partnership between
Defense Secretary
Mattis and Bolton
starts on a light note
Defense Secretary James Mattis, right, met John Bolton outside the Pentagon on Thursday.
Continued from Page One
Amazon found itself once
again
in
Mr.
Trump’s
crosshairs.
Thursday’s missive came
amid a fierce backlash against
Facebook Inc. and other big internet companies that has
helped fuel broader discussions
about privacy and added regulation of the industry.
Mr. Trump’s tweet followed
a report Wednesday by the online news site Axios that said
he has been looking at more
strictly regulating Amazon, including through antitrust law.
The report caused the company
to lose billions of dollars in
market cap as investors worried it might become a target.
Amazon last year contributed about 4% of total U.S. retail sales, while its portion of ecommerce totaled about 43%,
according to eMarketer. The
company’s revenue grew 31% to
$177.87 billion last year.
“I think Amazon faces a day
of reckoning with or without
Trump,” said Donald Hambrick, a professor of management at Pennsylvania State
University. “They have built up
this monolithic entity which a
lot of America benefits from,
but is also annoyed by and
skeptical of.”
Amazon shares rebounded
along with other tech stocks
Thursday, adding 1% to
$1,447.34 after finishing down
4.4% the day before.
The U.S. Justice Department
has no active antitrust investigations of Amazon, according
to people familiar with the
matter.
Even before the 2016 election, Messrs. Trump and Bezos
ANDREW HARRER/BLOOMBERG NEWS
AMAZON
Packages have been a source of growth for the Postal Service.
exchanged barbs. Mr. Trump
accused Amazon’s CEO of purchasing the Post to influence
politics. “If I become president,
oh do they have problems,” Mr.
Trump said in a speech on the
campaign trail.
The criticism, though, appears to have had no actual impact on regulation of the company.
Amazon’s collection of state
sales taxes has long been a
point of contention for traditional retailers and state and
local governments.
Amazon for years didn’t collect sales taxes in states where
it didn’t have a physical presence through a warehouse or
office, as permitted under federal law, creating the perception of lower-priced merchandise that helped fuel its
growth.
But the company shifted its
strategy in recent years, building more warehouses closer to
consumers. That has triggered
the need for it to collect taxes
in more states due to its physical presence.
Still, analysts estimate a majority of sales on Amazon’s site
stem from smaller merchants
on its site. Many of those small
businesses don’t collect sales
taxes outside of the states
where they are based, despite
being part of Amazon’s logistics network, which can allow
their merchandise to be
shipped to warehouses across
the U.S.
Amazon in January started
collecting sales taxes for sellers
in Washington due to a new
state law, and will do so in
April in Pennsylvania. It has
also started turning over some
seller data to state tax officials.
The Supreme Court will hear
arguments in April on a case
from South Dakota challenging
the standard of a physical presence as the way to determine
whether to collect sales taxes.
Brick-and-mortar retailers
and state governments have
been urging the court to overturn its 1992 precedent. A
court ruling in South Dakota’s
favor would upend the online
retail landscape.
The president also took aim
at Amazon’s use of the U.S.
Postal Service for deliveries.
Amazon is one of its largest
customers, contracting with
the quasigovernmental agency
forward to working with him.
Last time I checked, he’s an
American. I can work with an
American, OK?”
Before Mr. Bolton’s arrival,
Mr. Mattis met with CIA Direc-
tor and Secretary of State
nominee Mike Pompeo, Attorney General Jeff Sessions and
Sen. Lindsey Graham (R., S.C.).
The Pentagon said the foursome met to discuss routine
matters, but conceded they
don’t routinely meet. A U.S.
defense official said the U.S.
prison at Guantanamo Bay was
among several issues that they
discussed.
to deliver packages from the
post office to customers’ doorsteps—the so-called last mile.
The Postal Service is mandated by Congress to charge
enough to cover its costs, and
must typically seek regulatory
approval on pricing changes.
But some critics have said
the Postal Service has underpriced this type of delivery, essentially subsidizing its lastmile deliveries because the
agency already must deliver to
U.S. addresses six days a week.
The president also blamed
Amazon for putting thousands
of retailers out of business.
While many retail store locations have closed in recent
years, it isn’t known how large
a role Amazon may have played
in the development.
Some people in the business
community, including those
who know Mr. Trump well,
have said that antitrust law has
failed its historical purpose
when it comes to Amazon, focusing too much on pricing and
not enough on concerns that
integrated businesses can be
anticompetitive, people familiar with the matter have said.
A White House spokeswoman Thursday said that “the
president has expressed his
concerns with Amazon. We
have no actions at this time.”
Amazon’s retail chief, Jeff
Wilke, said in an interview last
year that the company has
grown horizontally and still
has a tiny fraction of the market in most of the segments in
which it does business. Professors on antitrust and competition say that this, combined
with Amazon’s tendency to
lower prices to benefit consumers, helps protect the company under current law.
Still, Amazon spent $13 million on federal lobbying last
year, up from $2.5 million in
2012. Its team of 95 internal
and external lobbyists includes
former Senate Majority Leader
Trent Lott and Brian Ballard, a
Republican fundraiser who is
close to Mr. Trump.
Amazon has also highlighted
its positive impact on the U.S.
economy, touting the small
businesses that sell on its site
as well as its job creation. Last
year, the company said it was
creating more than 130,000 fulland part-time jobs domestically
through the middle of this year.
Amazon also launched a
search for a second headquarters last year, promising it
could bring as many as 50,000
jobs and more than $5 billion
in investment to the winning
city. More than 238 cities and
regions applied, and Amazon
selected three of its 20 shortlisted entries in the Washington, D.C., area.
—Julie Bykowicz, David
Benoit and Brent Kendall
contributed to this article.
Donald Trump said in a tweet
about Amazon that they “use
our Postal System as their Delivery Boy (causing tremendous
loss to the U.S.).” The sentiments echoed previous tweets.
Former Postmaster General
Jack Potter said delivering packages for companies like Amazon Inc. and FedEx Corp. has
been a boon to the Postal Service. “That’s actually the solution right now,” said Mr. Potter,
who held the top job from 2001
to 2010. “It’s well justified that
they deliver those packages,
and they make money on it.”
The Postal Service has been
losing money overall for years,
recording a net loss of $2.7 billion for the most recent fiscal
year ended in November. The
agency doesn’t break out prof-
its by delivery. But its earnings
releases for that year show a
sharp decline in revenue from
first-class mail delivery of 6.9%
to $25.6 billion, a $1.87 billion
decline that service insiders
concede is an important source
of the agency’s challenges.
The agency, however, has
recorded strong growth in package delivery—the category that
would account for Amazon, and
many other online retailers.
Revenue rose last year more
than $2 billion, or 11%, to $19
billion. The number of parcels
delivered rose from 5.1 billion to
5.7 billion, an increase of 11.7%
A postal spokesman declined to comment on the
tweet. Amazon wasn’t immediately available for comment.
—Heidi Vogt, Paul Ziobro
Amazon Helps
Buoy Post Office
WASHINGTON—A presidential tweet Thursday suggested
Amazon Inc. is exploiting the
public mail system for its own
gain. The company has benefited from the U.S. Postal Service’s cheap and vast delivery
network, but the online retail giant also has bolstered the
agency’s struggling operations.
The Trump administration
and Congress have also been
slow to fill senior leadership positions at the Postal Service
and to push forward with legislation that could address the
service’s financial difficulties.
Early Thursday, President
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | A5
* * * *
U.S. NEWS
Senators Seek
More From Pick
MANUEL BALCE CENETA/ASSOCIATED PRESS
WASHINGTON—Capitol Hill
lawmakers reacted guardedly to
President Donald Trump’s nomination of the White House physician to head the Department
of Veterans Affairs, with key
members noting they know little about him.
Dr. Ronny Jackson, a U.S.
Navy rear admiral who has
served as a White House physician during the past three
administrations, is slated to
succeed Secretary David
Shulkin, who was ousted
Wednesday. Mr. Trump indicated on Thursday that he removed Dr. Shulkin because
change at the agency was coming too slowly.
The lead Republican and
Democratic senators who will
decide whether to confirm Dr.
Jackson said they didn’t yet
know enough to form an opinion about his ability to lead a
bureaucracy of 370,000 employees. The department, which
is the second-biggest government agency, is also still recovering from a 2014 scandal in
which employees were found to
have falsified records to hide
delays in patient care.
“I look forward to meeting
Adm. Jackson and learning
more about him,” said Sen.
Johnny Isakson (R., Ga.), chair-
man of the Committee on Veterans’ Affairs, which will vote
on confirmation.
Sen. Jon Tester of Montana,
the top Democrat on the panel,
offered a near-identical sentiment, adding that he is looking
forward to “seeing if he is up to
the job.”
Veterans service organizations and some other lawmakers have expressed skepticism
about Dr. Jackson, raising concern over the propriety of an
active-duty military officer
holding a political appointment,
and saying his biography
showed scant experience at
running a bureaucracy on the
scale he would inherit.
It is unclear how Dr. Jackson
would address the issue of his
active military status, including
whether he would seek to relinquish it before securing confirmation to the new job.
Dr. Jackson’s confirmation
will come as senators are debating legislation that would
increase veterans’ ability to
seek nongovernment medical
care.
Past and present White
House officials have praised Dr.
Jackson as a steady force, deft
in caring for different presidents and cabinet members.
They said they found him
knowledgeable about medicine,
including on issues specifically
affecting veterans.
Ronny Jackson, above, is slated to succeed Secretary David Shulkin.
DEAL
Continued from Page One
deepen Walmart’s relationship
with a key demographic—seniors—at a time when the retailer is being threatened by
Amazon on several fronts.
For Walmart, a deal would
hand it a new role in health
care, as well as a rich trove of
data. In addition to its pharmacies, Walmart already operates some primary-care
clinics and recently said it
would work with a major laboratory company to begin offering lab-testing services in
some of its stores.
In announcing that partnership last June, a Walmart executive said the company was
“not only focused on providing
accessible, affordable health
care, but also working to extend our offerings—truly making our stores a one-stop shop
for our customers’ everyday
health and wellness needs.”
The Bentonville, Ark., retailer is the country’s largest
private employer, with about
1.5 million U.S. workers, and a
deal with Humana could allow
the retailer to save money on
its own insurance plan.
Humana, which had $53.8
billion in revenue last year, is
the second-biggest provider of
the private Medicare plans
known as Medicare Advantage.
The Louisville, Ky.-based company has about 17% of the
Medicare Advantage market,
according to a tally by analysts at Wells Fargo, with
about 3.5 million participants.
Medicare is viewed as a
growth engine in the insurance industry, as the baby
boomers age into the program.
Humana also owns its own
pharmacy-benefit manager,
In addition to its
pharmacies, Walmart
already has some
primary-care clinics.
which itself had revenue of
about $21 billion last year,
and Walmart and Humana already partner on Medicare
drug plans. Humana has
about 4.9 million people enrolled in its Medicare drug
plans, known as Part D plans,
and is the third-biggest provider of them, according to
Wells Fargo.
Humana has been expanding into the business of providing health care, working
closely with doctors. The insurer has said it aims to get
BY DEL QUENTIN WILBER
JUSTIN MERRIMAN/BLOOMBERG NEWS
BY LOUISE RADNOFSKY
AND PETER NICHOLAS
Sessions:
No New
Special
Counsel
FirstEnergy has sought relief from the Trump administration. Above, a coal-fired power plant in Ohio.
Utility Seeks Federal Help
BY TIMOTHY PUKO
WASHINGTON—Power company FirstEnergy Corp. is asking President Donald Trump’s
administration to intervene to
keep struggling nuclear and
coal-fired power plants running
across the Midwest, escalating
a fight over which fuels power
the nation’s electric grid.
The move puts the issue in
the hands of a president and
energy secretary who have
promised to help the region’s
energy industry, especially its
struggling coal mines that have
closed by the dozens in recent
years. Earlier this year, an independent government energy
agency rejected a similar request from the Energy Department.
FirstEnergy delivered the
new request hours after the
company said Wednesday evening it plans to close three nuclear-power plants in Ohio and
Pennsylvania by 2021 if it can’t
sell them. FirstEnergy’s fleet of
coal and nuclear plants has
been tottering on bankruptcy,
hit like many of its peers nationwide by aggressive competition from cleaner gas-fired and
renewable power generators
deeper into managing the care
of its members, as a means of
curbing costs and meeting
quality goals. Last year, the
company said it would take a
stake in a big home-health and
hospice-care provider.
Meantime, Amazon has
loomed ever larger in the
health-care industry, especially after its January announcement that it would
partner with Berkshire Hathaway Inc. and JPMorgan
Chase & Co. on a venture to
reduce their employees’
health-care costs.
Amazon also has been eyeing an entry into the pharmacy-services industry, and
recently expanded its Prime
discount program to beneficiaries of Medicaid, the government health-coverage program
for lower-income people, a key
demographic for Walmart.
A Walmart-Humana deal
would cap a rapid-fire series
of transactions that could
transform the business of
managing health care. Many of
the biggest health insurers are
pairing up with others outside
their industry to create behemoths with a far larger role in
the health-care industry after
two attempted health-insurance mergers were blocked in
early 2017 by courts on antitrust grounds: Aetna-Humana
and Anthem Inc.-Cigna.
Health Care Revamp
A Walmart-Humana deal would cap a series of transactions that could transform the business
of managing health care.
Walmart*
Humana
Annual revenue, in billions
$500
CVS
Aetna
+
$185
$61
+
$54
Announced
in December
UnitedHealth
$201
Market capitalization
Cigna
$42
Express Scripts
+
$100
Walgreens Boots†
Announced
in March
$264 billion
+
$37
$124
Anthem
$90
*Fiscal year ended Jan. 31 †12 months ended Feb. 28
Sources: S&P Capital IQ (revenue); FactSet (market cap)
THE WALL STREET JOURNAL.
that have become cheaper to
run in the past decade.
The request goes to the Republican president’s energy secretary, Rick Perry, who has said
several times that these plants
are vital to stable prices and a
reliable electric grid. Late last
year, Mr. Perry pitched a plan to
guarantee profits for these
plants, which would keep them
open by ensuring they wouldn’t
have to compete in electricity
markets. The Federal Energy
Regulatory Commission rejected
that plan, saying it didn’t appear
necessary. FirstEnergy has said
Mr. Perry can use emergency
powers to enact a similar plan.
Thursday’s request will “go
through our standard review
process,” Mr. Perry’s spokeswoman, Shaylyn Hynes, said.
FirstEnergy’s request would
avoid the regulatory commission, which is still reviewing
market changes that would affect these plants. It asks the Energy Department to use the
Federal Power Act to force grid
operator PJM Interconnection
LLC to guarantee profits for nuclear and coal-fired plants
across PJM’s territory, which
stretches from Newark, N.J., to
Chicago.
PJM leaders are already considering better rewards for
plants like coal and nuclear that
can run steadily for days at a
time. FirstEnergy said PJM isn’t
moving fast enough.
It cites research from the Energy Department that suggests
the country does face a risk of
more volatile prices and fuel
shortages if nuclear and coalfired plants continue to close
without replacements.
As the Energy Department
“is undoubtedly aware, threats
to the nation’s power supply
and grid are real and can no
longer be ignored,” FirstEnergy’s lawyers said in their application. “The nation’s security
is jeopardized if DOE does not
act now.”
A PJM executive and critics
of FirstEnergy pointed out that
FirstEnergy’s move isn’t immediate either. All of the closings
FirstEnergy promised Wednesday are more than two years
away. PJM said its reserve capacity is around an all-time
high.
“We have concluded repeatedly that the system is reliable
and we expect to maintain reliability,” said Vince Duane, PJM’s
general counsel.
WASHINGTON—Attorney
General Jeff Sessions has rejected calls from Republican
lawmakers to appoint a second
special counsel to investigate
how the Justice Department
and FBI handled probes involving Hillary Clinton and a former Trump campaign adviser.
Instead, Mr. Sessions has
tapped the top federal prosecutor in Utah, John Huber, to review the high-profile investigations, according to a letter Mr.
Sessions sent Thursday to Republican committee chairmen.
“I am confident that Mr.
Huber’s review will include a
full, complete, and objective
evaluation of these matters in
a manner that is consistent
with the law and the facts,”
Mr. Sessions wrote.
In his letter to lawmakers,
Mr. Sessions said the matters
didn’t yet rise to the level necessary of appointing a special
counsel and the Justice Department’s inspector general
has the necessary tools to conduct a thorough investigation.
He added that Mr. Huber will
provide him with regular updates and will make recommendations on whether further
investigative
steps,
including the appointment of a
special counsel, are necessary.
Mr. Huber is conducting his
review in conjunction with the
inspector general’s office, Mr.
Sessions wrote. The inspector
general has spent a year examining the department’s federal
investigation into Mrs. Clinton’s
use of a private email server.
That office announced this
week it would also investigate
how the Justice Department
and FBI obtained warrants
starting in 2016 from the secret Foreign Intelligence Surveillance Court to monitor
Carter Page, a former Trump
campaign adviser.
.
A6 | Friday, March 30, 2018
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
Lashing Back, Russia Expels Diplomats
Blaming Washington
for ‘campaign of
slander,’ Moscow kicks
out 60 U.S. envoys
MOSCOW—Russia will expel
U.S. and European diplomats
and close the U.S. consulate
general in St. Petersburg in response to measures taken
against Russia over its alleged
role in the poisoning of a former double agent in England.
The Russian measures, announced Thursday by the Russian Foreign Ministry, follow
the coordinated expulsion ordered this week of more than
130 Russian diplomats from
the U.S. and European countries, after the U.K. government said Russia was responsible for the use of a militarygrade nerve agent in an
attempt to murder Sergei Skripal and his daughter, Yulia.
Russia has denied it was behind the attack.
The foreign ministry said
Thursday it had summoned the
U.S. ambassador, Jon Huntsman, and told him that 58 U.S.
envoys in Moscow and two in
St. Petersburg would have to
leave Russia by April 5.
“It was recommended to
the U.S. authorities, who are
encouraging and fanning a
campaign of slander against
KOVALEV PETER/TASS/ZUMA PRESS
BY JAMES MARSON
Russia ordered the U.S. consulate general in St. Petersburg closed, echoing Western actions after a nerve-agent attack in England.
our country, to come to their
senses and put a stop to reckless actions that are destroying bilateral relations,” the
ministry said in a statement.
The nerve-agent attack and
the subsequent sanctions have
deepened a rift between Rus-
sia and the West over Moscow’s alleged interference in
the 2016 U.S. presidential election and its military interventions in Ukraine and Syria.
The U.S., Canada and more
than a dozen European countries expelled scores of Rus-
sian diplomats and intelligence officers on Monday. The
ejections of 60 Russians that
the U.S. identified as intelligence officers—48 from the
Russian embassy and 12 from
the permanent mission to the
United Nations—was the larg-
est number of expulsions since
the end of the Cold War.
Foreign Minister Sergei
Lavrov described the measures
taken by the U.S. and other
Western countries last week
as “unacceptable actions that
are taken under the toughest
KOREA
PRESS POOL
Continued from Page One
The U.S. earlier this week
said it had reached a preliminary agreement to grant South
Korea a permanent exemption
to new steel tariffs.
The president’s remarks appeared to imply he is expecting South Korea to help pressure the rival North into
making concessions.
South Korean President
Moon has been working for
months to bring Pyongyang to
the negotiating table, while
standing by Washington in a
“campaign of maximum pressure” aimed at isolating
Pyongyang and squeezing its
economy.
Thursday’s talks between
officials from North and South
Korea followed Mr. Kim’s return from Beijing, where he
met Chinese President Xi Jinping this week and told him
about his willingness to denuclearize, according to Chinese
state media.
South Korea’s chief negotiator, Cho Myoung-gyon, said
Seoul would certainly raise
the “denuclearization of the
Korean Peninsula” at the
April 27 summit between the
two leaders.
But he conceded that fur-
Trump Suggests
Potential Delay on
Talks With Seoul
pressure of the U.S. and the
U.K. under the pretext of the
so-called ‘Skripal case,’ ” state
news agency RIA reported.
In Washington, the State
Department criticized Russia’s
moves Thursday as regrettable
and unwarranted.
“We don’t see this as a diplomatic tit for tat. Russia is responsible for that horrific attack,”
State
Department
spokeswoman Heather Nauert
said, in reference to the poisoning. “They don’t need to
act like a victim.”
Ms. Nauert added that the
U.S. reserved the right to respond further to Russia’s recent moves.
The British government
considered the Trump administration’s response to the poison attack “very strong,” Mark
Sedwill, British Prime Minister
Theresa May’s national security adviser, said in Washington on Thursday.
Accusing Moscow of a pattern of aggressive covert behavior, Mr. Sedwill also said
other steps to penalize Russia
might be ahead.
“We are introducing a
range of other restrictions to
essentially dismantle this capability as we discover other
components of it,” he said.
“We are encouraging other
countries to do the same.”
—Felicia Schwartz and
Gerald F. Seib in Washington
contributed to this article.
President Donald
Trump floated the idea of delaying trade negotiations with
South Korea to use them as
leverage for reaching a deal
with North Korea.
Speaking in Richfield, Ohio,
on Thursday, Mr. Trump said of
renegotiating the U.S.’s trade
deal with South Korea: “I may
hold it up until after a deal is
made with North Korea.…You
know why? Because it’s a very
strong card.”
The U.S. earlier this
week reached a preliminary
agreement to grant South Korea a permanent exemption to
new steel tariffs in return for
trade concessions, amending a
2012 trade pact in response to
U.S. concerns about its $18 billion merchandise trade deficit
with Seoul.
The two countries have
been working toward summits
between South Korean President Moon Jae-in and North
Korean leader Kim Jong Un,
followed by a meeting with Mr.
Kim and Mr. Trump.
—Rebecca Ballhaus
Trump has suggested the
meeting could take place before the end of May.
Former officials said North
Korea might not want to reveal much about its position
on denuclearizing ahead of the
meeting with Mr. Trump.
“Why give away that
card?” said Sue Mi Terry, a
Korea expert at the Center for
Strategic and International
Studies in Washington who is
a former CIA analyst and National Security Council staffer.
The North Koreans were
likely surprised by Mr.
Trump’s quick acceptance of a
meeting, and are trying to
figure out their own negotiating position.
“They’re probably scrambling and strategizing as well,
they don’t want to lock themselves down, they want to be
able to hedge,” Ms. Terry said.
North Korea’s diplomatic
outreach on talks comes as
countries have stepped up enforcement of sanctions that
penalize Pyongyang for its
weapons development.
The
restrictions
have
started to bite North Korea’s
economy, diplomats and economists said.
—Charles Hutzler in Beijing
contributed to this article.
The North and South Korean delegations shook hands in Panmunjom after their Thursday meeting.
ther talks with North Korea
would be needed to clarify
what would be discussed. Mr.
Cho said the two Koreas
“agreed we needed more time
to better coordinate the specific terms of the agenda.”
Trump administration officials said Thursday they continue to plan for a summit
meeting between Mr. Kim and
Mr. Trump.
The inter-Korean meeting,
and the lack of any specific
reference to denuclearization,
comes against the backdrop of
Mr. Trump’s choice of two relative
hard-liners,
Mike
Pompeo and John Bolton, for
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Mr. Bolton has advocated
pre-emptive strikes on North
Korea and expressed deep
skepticism over Pyongyang’s
willingness to part with a nuclear program that it has
spent decades building up.
The announcement from
North and South Korea on
Thursday setting a date for
the inter-Korean summit
“moves us closer to the point
where the United States can
sit down with North Korea and
have a meeting,” said Heather
Nauert, the acting under sec-
FEEL
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LIVE
retary of state for public diplomacy and public affairs.
Ms. Nauert said the U.S. is
moving ahead, albeit cautiously, as it has received signals that North Korea is willing to discuss denuclearization
with Washington.
“North Korea has stated to
South Korea certainly, and to
China, that it is committed to
denuclearize,” Ms. Nauert
said. “We are planning to go
ahead with meetings to have
conversations with them about
that at this point.”
No date has yet been set for
a summit between Mr. Trump
and Mr. Kim, though Mr.
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China Keeps Tight Rein
As Vatican Deal Looms
BY EVA DOU
BEIJING—Chinese officials
allowed an underground Catholic bishop to celebrate Holy
Thursday Mass after concerns
about his treatment risked upsetting efforts by Beijing and
the Vatican to end a decadeslong rift.
Communist Party officials
had summoned Bishop Vincent
Guo Xijin on Monday, worrying his followers that he
would be detained through
Holy Week, as he was at this
time last year.
After two days of tense negotiations, the two reached a
compromise over Bishop Guo’s
Easter appearances, and he
quietly celebrated Mass on
Holy Thursday, also known as
Maundy Thursday, with priests
in his diocese, people familiar
with the matter said.
The role of Bishop Guo has
loomed large in the broader
negotiations over the appointment of bishops and the
pope’s role in China’s Catholic
Church. Bishop Guo is one of
two Vatican-appointed bishops
who have been asked by the
Holy See to step aside and
make way for Beijing-backed
clerics, according to people
with knowledge of the talks.
He has said he would step
down if the pope commands it.
The Vatican and Beijing
have agreed on the terms of a
deal on the appointment of
bishops that would help end
the rift, according to people
familiar with the negotiations.
A Vatican spokesman said
Thursday that the signing of
an accord wasn’t imminent.
A Chinese Foreign Ministry
spokesman expressed optimism the negotiations would
“lead to positive outcomes.”
Last year, Bishop Guo was
held in a house on a mountain
for 20 days. Some priests and
other followers of the bishop
warned local officials they
would face unfavorable publicity this year if he was mistreated with a Vatican deal on
the horizon, the people familiar with the arrangement said.
Ever since Beijing set up a
government-backed church in
the 1950s it has tussled with
the Vatican over bishop appointments, with each side
sometimes appointing separate bishops and not recognizing each other’s picks.
After the Mass on Thursday, officials with the United
Front Work Department took
Bishop Guo to the port city of
Xiamen, 186 miles to the
south, in part to keep him
away from reporters who have
descended on Luojiang with
Easter’s approach and the Vatican-Beijing compromise looming, the people said.
—Kersten Zhang in Beijing
and Francis X. Rocca
in Rome contributed
to this article.
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | A7
NY
WORLD NEWS
CARACAS, Venezuela—The
families of 68 people who died
in a jail fire demanded Thursday that President Nicolás Maduro’s government explain
what happened when the overcrowded facility in the central
Venezuelan city of Valencia
erupted in violence and flames.
“They need to give us justice, real justice, because what
happened has no name,” said
Jose Hernandez, who said his
24-year-old son, Jefferson, was
killed. “They treated human
beings like they are garbage.”
Late Wednesday, hours after
the flames tore through the
detention center of a police
station, the country’s attorney
general, Tarek William Saab,
announced the death toll and
said four prosecutors had been
appointed to “clarify these dramatic events.” But few details
had been provided as of Thursday afternoon, and government officials didn’t respond
to requests for comment.
Relatives of the prisoners
said their loved ones called
from inside the jail, telling
them that shots were being
fired and then that a fire was
roaring out of control.
A Window to Freedom, a
group that monitors conditions
in the country’s jails, said the
trouble began when a prisoner
wrested a gun from a police officer and shot him in the leg in
a failed attempt to take two
police officers hostage. Prisoners then set fire to mattresses,
spreading smoke and flames in
the confined space. Officials
tried to break through and
save prisoners who had been
burned or were suffering from
smoke inhalation.
“The victims were all killed
by asphyxia,” said Carlos Alberto Nieto, director of A Window to Freedom.
BY MATTHEW DALTON
PARIS—Prosecutors ordered
former French President Nicolas Sarkozy to stand trial for
allegedly attempting to obtain
confidential information about
a police inquiry into his campaign finances, compounding
the politician’s legal woes as
he faces two other criminal investigations.
Mr. Sarkozy is suspected of
using his influence in 2013 as
a former head of state to help
a senior French court official
seek a plum job in Monaco. In
return, prosecutors allege Mr.
Sarkozy sought access to information about a separate police inquiry into whether the
late L’Oréal heiress Liliane Bettencourt illegally financed his
2007 presidential campaign.
Mr. Sarkozy faces charges
of influence-peddling and corruption, an official familiar
with the investigation said
Thursday. A date for the trial
hasn’t been set.
The move is another blemish on Mr. Sarkozy’s political
legacy. Last week, prosecutors
brought preliminary charges of
campaign-finance violations
and corruption against him for
allegedly accepting potentially
tens of millions of euros in
cash from the regime of the
late Libyan dictator Moammar
Gadhafi to finance Mr.
Sarkozy’s 2007 campaign.
Nicolas Sarkozy
is suspected of
using his
influence to
help a court
official seek a
plum job.
He also has been ordered to
stand trial for allegedly breaking campaign-financing rules
in his failed re-election bid in
2012. The charges against Mr.
Sarkozy related to financing
by Ms. Bettencourt were dismissed after prosecutors concluded they didn’t have
enough evidence to move
ahead. Mr. Sarkozy had faced
preliminary charges that he
took advantage of the frailty of
the elderly heiress.
Mr. Sarkozy has denied
wrongdoing in all three investigations. Mr. Sarkozy’s lawyers, Pierre Haik and Jacqueline Laffont, said he has
challenged the order to stand
trial. “He has no doubt that
once more, the truth will win
out,” they said.
Previously, Mr. Sarkozy said
that he didn’t attempt to influence the court official, Gilbert
Azibert, and noted that Mr.
Azibert was never given a job
in Monaco. Mr. Azibert
couldn’t be reached to comment; he previously has denied
any wrongdoing.
“Where is the influencepeddling? Where is the corruption?” Mr. Sarkozy said on
French television in 2014. “It’s
scandalous.”
Among the evidence gathered by investigators are recordings of phone conversations between Mr. Sarkozy and
Thierry Herzog, one of his
lawyers, in which they allegedly discussed the possibility
of influencing Mr. Azibert, according to French officials familiar with matter. Those
wiretaps were authorized under the investigation examining Mr. Sarkozy’s ties to Libya.
Mr. Herzog didn’t respond to
requests to comment. He has
denied any wrongdoing.
WORLD WATCH
IRELAND
CANADA
Spring Referendum
On Abortion Is Set
GDP Slips Amid
New Lending Rules
Ireland will vote this spring
on whether to overturn a constitutional abortion ban, in a referendum likely to be hotly contested as the country moves
away from the conservatism of
a Catholic Church tarnished by a
sex-abuse scandal and other
controversies.
With opinion polls pointing to
a narrow vote in favor of
change, the government’s announcement that the referendum will be held May 25 marks
the official start of a campaign
over whether to allow abortion
in one of the few European
countries that still outlaws it.
The ban was added to Ireland’s
constitution in a 1983 vote. But as
Irish opinion has appeared to shift,
the government began paving the
way to a referendum, bringing together an assembly of 99 citizens
who voted in favor of recommending the ban be removed.
The country has steadily
changed laws rooted in Catholic
doctrine, including in a recent
referendum in which voters
overwhelmingly chose to legalize
same-sex marriage.
—Paul Hannon
The Canadian economy contracted slightly in January, falling
short of expectations as tougher
mortgage-lending rules contributed to the biggest decline in
real-estate agents and brokers’
output in more than nine years.
Lower output of nonconventional oil extraction also contributed to the overall decline in
January.
Canada’s gross domestic product, or the broadest measure of
goods and services produced in
an economy, fell 0.1% in January
from the previous month to a
seasonally adjusted 1.76 trillion
Canadian dollars ($1.36 trillion),
Statistics Canada said.
Statistics Canada said the
economy expanded 0.2% in December, up from an earlier estimate of a 0.1% gain. On a oneyear basis, the economy grew
2.7% in January.
The weaker-than-anticipated
report shows the economy got
off to a slow start in 2018 after
gaining 3% in 2017. It could tamp
down expectations that the Bank
of Canada will raise its benchmark rate in coming months.
—Kim Mackrael
Malala Yousafzai, in orange dress, was honored by Pakistan Prime Minister Shahid Khaqan Abbasi.
PAKISTAN
Nobel Winner Visits
Amid Heavy Security
Nobel Peace Prize winner
Malala Yousafzai returned to her
homeland of Pakistan for the
first time since being shot by
the Taliban more than five years
ago and pledged to continue her
campaign to promote education
for girls.
Ms. Yousafzai and her family
were shuttled under tight security to be welcomed a Prime
Minister Shahid Khaqan Abbasi’s
residence. In a tearful speech
she talked about how she
thought of home and will continue to fight to promote
women’s empowerment, health,
education, democracy and peace.
Ms. Yousafzai wrote a blog
under a pseudonym that documented the rule of the Pakistani
Taliban. In 2012, when she was
15, two gunmen stopped her
school van and shot her in the
head. The Taliban later claimed
responsibility. She was flown to
the U.K. for treatment.
Since the attack, Ms.
Yousafzai has pursued her studies and continued to speak out
against extremism. She became
the youngest person yet to be
awarded the Nobel Prize.
—Waqar Gillani
Sirchaï'17
BY MAYELA ARMAS
AND KEJAL VYAS
France’s Sarkozy to Stand Trial
PRESS INFORMATION DEPARTMENT/REUTERS
Families
Demand
Answers
After Fire
.
A8 | Friday, March 30, 2018
THE WALL STREET JOURNAL.
* *
EXXON
Continued from Page One
flags, and what it did in response, is based on interviews
with three people directly involved in the negotiations and a
review of transaction and bank
documents detailing the movement of funds. Some of the
documents were provided by
Global Witness, a London-based
organization that investigates
corruption, which released a report on the deal Thursday. The
Journal independently corroborated information from the
Global Witness documents.
The bank documents reveal
that hundreds of thousands of
dollars in payments were made
to Liberian government officials
involved in the deal, including
the son of the country’s former
president,
Ellen
Johnson
Sirleaf, who was awarded the
Nobel Peace Prize in 2011.
Exxon spokeswoman Rebecca Arnold said the company is “confident that the
agreement complies with local
Liberian law and international
anticorruption laws….Exxon
Mobil has an unwavering commitment to honest and ethical
behavior wherever we do business. We have a longstanding
commitment to compliance
with the U.S. Foreign Corrupt
Practices Act and the anticorruption laws of the countries
and territories in which we do
business.”
Mr. Tillerson, President Donald Trump’s recently ousted
secretary of state, declined
through a spokesman to comment.
Christopher Neyor, who was
chief executive of the Liberian
state oil company at the time of
the London meeting, said “it
was comfortable for” Exxon to
deal with the Canadian company as part of the transaction.
He said the state oil company
and the Liberian “government at large did not know the
truth” regarding the true owner
of the Liberian oil stake.
President’s son
Robert Sirleaf, Ms. Sirleaf’s
son and a former chairman of
the state oil company, defended
the payments to Liberian officials, saying they were bonuses
for completing what was then a
landmark deal in an impoverished country.
Global watchdogs see transparency as one of the best ways
to reduce corruption, believing
that when companies disclose
payments to governments,
money will be less likely to flow
illegally to public officials. The
U.K. in 2010 passed a law called
the Bribery Act, a close cousin
to the U.S. Foreign Corrupt
Practices Act, which bars public
companies from bribing government officials to gain an advantage over competitors.
In 2010, as Exxon’s chief executive, Mr. Tillerson lobbied
against a new federal requirement that required energy and
mining companies to disclose
payments to foreign governments, arguing that it put U.S.
companies at a disadvantage to
foreign rivals. Last year, U.S.
lawmakers scrapped the requirement, which was part of
the Dodd-Frank law.
Interest in potential oil
riches off Liberia’s shores blossomed in the mid-2000s as the
country emerged from a long
civil war. During a chaotic transitional period before the 2006
election of Ms. Sirleaf, there
was a scramble among Liberians, including some members
of the government, to get a
piece of the possible oil-exploration boom, say people involved in Liberia’s oil industry.
“There were a lot of suggestions that contracts were not
signed in the way they would
be under a more stable government,” said Jeffrey Wood, a
U.S. lawyer who has worked
with the Liberian government
on natural-resource oversight
and helped it with the Exxon
deal.
In 2005, when the contest
for oil rights was gaining
steam, a company called Broadway Consolidated PLC, registered on the Isle of Man, signed
a contract with Liberia’s staterun oil company, the National
Oil Company of Liberia, or Nocal, for drilling rights to an offshore expanse known as Block
13. Another company, Oranto
Petroleum Ltd., also obtained licenses from Nocal. Oranto said
in a written statement that
“multiple inquiries have concluded that Oranto’s activities
in Liberia were carried out in
accordance with all laws and
regulatory
requirements.”
Broadway is now defunct.
Broadway investors have included an energy fund operated
by RAB Capital, a U.K. investment fund. Several Liberians
have also been linked to the
company, including David Jallah,
a
politically
connected lawyer listed in corporate
filings
as
a
shareholder. Mr. Jallah, the former dean of the country’s law
school, didn’t respond to requests for comment.
Bank documents
reveal that payments
went to Liberian
government officials.
Adolph Lawrence, a Liberian lawmaker who was chairman of the committee that
oversees the country’s oil-andgas deals, once held contracts
giving him the right to buy a
stake in Broadway, according
to a 2011 document related to
a separate, scuttled transaction. He held his position at
the time of the Exxon deal, although it isn’t known whether
he retained his Broadway interests after he began serving
as a lawmaker in 2012. Mr.
Lawrence didn’t respond to requests for comment.
Jonathan Mason, minister
of Liberia’s lands, mines and
energy department in the
2000s, helped launch several
companies in the 1990s whose
names included the word
Broadway, according to documents reviewed by the Journal. In an interview, Mr. Mason said he worked as a
consultant for Broadway Consolidated but never owned a
stake in it.
The discovery of an enormous oil field off nearby
Ghana’s shores in 2007
touched off a rush to explore
for oil off West Africa’s coast,
including
in
Liberia.
Exxon, Chevron Corp. and
other Western companies angled to gain access to potentially lucrative concessions.
THIERRY GOUEGNON/REUTERS
IN DEPTH
Interest in potential oil riches off the coast of Liberia, whose capital is Monrovia, above, blossomed in the mid-2000s.
They struggled to compete
with state-backed firms from
China and Russia that often
didn’t adhere to the same anticorruption standards as the
U.S. and European Union.
Complicated Transaction
How Exxon Mobil structured a deal to
buy oil rights off the coast of Liberia.
First strike
Chevron, the second-largest
U.S. oil company, struck first
in Liberia, inking a deal in
2010 with Oranto for three
deep-water blocks. Chevron
spokeswoman Isabel Ordóñez
said the company applies “full
due diligence” to all potential
partners and follows all laws
in the countries where it operates, which it did in Liberia.
A 2011 investigation by Liberia’s General Auditing Commission found that in 2006 and
2007, Nocal disbursed more
than $100,000 to legislators.
Some members of Nocal’s
board had concerns the payments were made “to influence
the passage of the petroleum
contracts” of Broadway and
Oranto and were “a form of
bribery,” the commission said.
Chevron had concerns similar to Exxon’s about securing
Block 13, including about the
owners of Broadway, which
had changed its name to Peppercoast Petroleum, according
to a former Liberian government oil minister and a person
familiar with Chevron’s review
of the block.
Peppercoast, meanwhile, had
failed to move ahead on an exploration program. The Liberian government pushed it to
sell.
Canadian Overseas Petroleum Ltd., a Calgary, Canada, oil
company, began negotiating to
purchase a stake in the block
from Peppercoast. But Nocal
blocked the bid amid concerns
that Canadian Overseas didn’t
have experience drilling deepwater wells, according to Mr.
Neyor.
Enter Exxon. In December
2011, a team of Exxon officials
met in London with several Liberian government officials, including then-President Sirleaf’s
son, Mr. Sirleaf, who was soon
to be appointed chairman of
Nocal, according to documents
reviewed by the Journal and
people who attended the meeting.
Keeps 20%
of Block 13
oil rights
100% of
Block 13
oil rights
sadors, says Jim Nemet, of the
Cleveland Metroparks Zoo. Exotic or novel animals small
enough to handle and transport
are often good choices. When
zoos heard that several tawny
frogmouth birds were available,
“Everyone went crazy,” he says.
Commonly mistaken for owls,
the tawny frogmouth has a big
mouth and assumes a stick-like
posture when threatened.
Some ambassadors travel
across the country for appearances. Burley, a nine-year-old
koala from the San Diego Zoo,
recently flew to New York with
three zoo staff members for
several media appearances, in-
cluding one at The Wall Street
Journal. Rick Schwartz, who
heads the zoo’s ambassador
program, brought a portable
eucalyptus tree with a perch
and installed it in their hotel
room.
“There’s a lot of advance
work for these trips,” says Mr.
Schwartz. While koalas are popular, it’s hard to predict which
ambassador will strike a chord.
People might meet a hedgehog
for the first time and fall in
love, he says.
Erin Gray, who oversees the
79 animal ambassadors at the
Nashville Zoo, never expected
people to bond with skunks, but
National Oil
Company of Liberia
(Nocal)
$45
million
Bonus payments
Ecobank
Exxon officials outlined their
concerns about potential corruption tied to the block, according to the people and a
PowerPoint presentation made
by Exxon at the meeting.
Exxon detailed a two-step
transaction: Canadian Overseas
would purchase the rights to
Block 13 from Peppercoast, then
Exxon would buy a controlling
stake in the block from Canadian Overseas, according to the
people and the PowerPoint presentation. Putting Canadian
Overseas in the middle of the
transaction would allow Exxon
to avoid dealing directly with
Peppercoast.
Canadian Overseas said in a
written statement that it “adheres to the highest levels of
corporate governance as a public company,” and that it “carried out meticulous due diligence over a two-year period
before completing the Liberian
acquisition and sought legal advice in the UK, Liberia, Canada
and United States. No evidence
was ever found to suggest Liberian government officials were
linked to shareholdings in Peppercoast.”
Mr. Wood, who attended the
meeting on behalf of the Liberians, said Exxon was “extremely
careful to be seen as doing
things that were correct” in the
deal.
Sixteen months later, the Liberian government approved a
deal that public and internal Liberian records show was close
to what had been outlined in
the London hotel, with an important added detail outlined in
the production-sharing agreement.
Exxon insisted that it
wouldn’t pay any cash to Peppercoast, nor would partner Canadian Overseas Petroleum. Instead, the money for
the deal would go to the state
oil company, Nocal, which had
agreed to act as an intermediary. Nocal secured a short-term
loan from an African bank
called Ecobank Transnational
Weeks after the money
was transferred, Nocal made
payments totaling more than
$500,000 to more than 100
Nocal employees, according to
Mr. Sirleaf and bank records
provided by Global Witness.
He received $35,000, the bank
records show.
There is no indication
Exxon, Mr. Tillerson or Canadian Overseas was aware of
the payments.
The Liberian government,
under newly elected president
George Weah, is reviewing Nocal’s audit reports and the bidding processes that led to the
auctioning of oil blocks, said
Eugene Nagbe, Liberia’s minister of information, culture and
tourism, in an email. “If any
corruption activity is found to
have taken place, the perpetrators will be brought to justice,” he said.
Mr. Sirleaf, who said he has
worked for 24 years in finance
for several U.S. banks,
stands by the deal.
“It was the right thing to
do at the right time, and it
still is,” he said. He compared
the payments to year-end bonuses and said they were paid
to all Nocal employees.
It was ultimately not the
right deal for Exxon. The well it
drilled to test the site’s prospects came up dry. Exxon gave
up its rights to the prospect
last year.
they do. “It’s amazing how excited people get,” she says. “It’s
all about changing perceptions.”
Karyn Locke, a Pittsburgharea travel writer, has met the
National Aviary’s sloths and armadillos, and says they may attract different fans. Vivien, the
six-month-old sloth, has a gentle and kind face, she says,
which might appeal more to little girls. Wonka digs in the dirt,
eats dead bugs and can turn
into a ball like a Transformer.
“He might appeal to younger
boys,” she says.
Training an animal to be an
ambassador takes time, says
Cathy Schlott, who is in charge
of the National Aviary’s program. Before going to visit a
school or local TV station, Ms.
Schlott or her staff take their
birds and Willy and Wonka on
short drives to get them used to
being in a car. They brought
along Willy’s favorite feeding
bowl for a recent TV appearance.
The two armadillos are easy
to train, Ms. Schlott said, because they are so focused on
smelling for bugs that distractions like lights and background
music don’t bother them. They
take turns starring in Amazon
Adventures, a show featuring
13 animals and birds. At one
point, a fiberglass termite
mountain is rolled onto the
stage. Willy or Wonka climbs up
the mountain, following a path
of previously laid bugs. They
eat their way up and down before retreating back into their
carrier.
Ms. Schlott says animals
aren’t forced to perform or
visit, although they are encouraged and rewarded. If Willy or
Wonka are napping and it’s
show time, Ms. Schlott will
wave a dead cricket in front of
their nose to wake them up.
“It’s like the smell of coffee to
them,” she says.
Last year, as a present to
himself for his 44th birthday,
John Santore paid $150 to
spend a half-hour with the aviary’s first two-toed sloth, Valentino. This year, he decided to
mark his birthday by meeting
the baby sloth, Vivien, in the
morning and Willy, the armadillo, in the afternoon. “They
were very different experiences,” says Mr. Santore, who
works in information technology.
Vivien had eight visitors, a
capacity sloth crowd, including
Jordan McMullen, a 27-year-old
mother of three with a tattoo of
a sloth hanging from a doughnut on her calf. She woke at 4
a.m. and drove with her hus-
band from Baltimore to Pittsburgh to spend a half-hour with
Vivien as a Valentine’s Day gift.
Ms. McMullen, who wore a shirt
with the sloth on it, took selfies
and cried. Sloths aren’t just
adorable but remarkable, she
says. Moss grows on their fur,
which camouflages them in the
rain forest. “I’ve loved them
since childhood,” she says.
Mr. Santore, Willy’s only
guest, said armadillos aren’t as
cute as sloths. Willy has a long
skinny pointed face. His eyes
are small and close together.
His ears are big and look like
trumpets. But he is much more
active. Willy ran in circles
around him, ignoring him and
the worms in his hand. “He reminds me of my cat,” he said.
With no one else there, he
was able to ask the trainer
many questions. Willy’s age
(about 10 months) and his longevity (up to 15 years.) Has an
ambassador ever refused to
come out of the carrier to meet
people? Yes, once when the fire
alarm sounded, a sloth wouldn’t
budge so they had to reschedule
the encounter. He learned that
the reason they sit on the floor
is because the Southern threebanded armadillo has poor eyesight and might run off a table.
“It was worth every penny,”
he says.
Liberia
Finance
Ministry
Provided bridge
loan and received
$1.5 million in fees
$68.5
million
Peppercoast Petroleum
(original owner of Block 13 oil rights)
Sources: Loan agreement; sale and purchase agreement;
asset purchase agreement; bank transfer receipts;
company news releases; Nocal meeting minutes.
HOUSTON ZOO
Encounters are available with the mole rat at the Houston Zoo.
Keeps
$5 million
Canadian
Overseas
Petroleum
ZOOS
Continued from Page One
loves armadillos but has only
seen dead ones, which is why
she jumped at the opportunity
to spend time with a lively one.
Animal ambassadors are
popular at zoos, aquariums and
aviaries across the country, but
some are more popular. Encounters with red pandas are
sold out at the Houston Zoo,
but are available with the zoo’s
naked mole rat, which has large
buck teeth.
When people spend time
with an animal, they are more
likely to care more about them
and do their part to conserve
places like the rain forest for
species like armadillos, says
Tarah Jacobs, senior supervisor
of ambassador animals at the
Houston Zoo, which has 60 ambassadors, representing 44 species.
They also make money for
the zoos. A chance to walk with
a cheetah on the leash before
the Houston zoo opens costs
$195 for zoo members.
The Ambassador Animal Scientific Advisory Group, part of
the Association of Zoos and
Aquariums, connects zoos with
animals that make good ambas-
$120
million
80% of
oil rights
Inc. to pay Peppercoast to
transfer the oil block. On April
5, 2013, Nocal used the loan to
pay $68.5 million to Peppercoast, which transferred Block
13 to Canadian Overseas, which
then transferred an 80% stake
to Exxon, bank records and deal
documents show.
That same day, Exxon paid
$120 million from a New York
bank account to the African
bank used by Nocal, satisfying
the short-term loan, the documents show. The Liberian government got $45 million from
the deal, Nocal got $5 million
as a bonus, and the African
bank received $1.5 million in
fees, the documents show. A
spokeswoman for EcoBank
didn’t respond to a request for
comment.
THE WALL STREET JOURNAL.
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A9A | Friday, March 30, 2018
NY
THE WALL STREET JOURNAL.
* ***
GREATER NEW YORK
Subway Upgrade Could Be Fast-Tracked
New transit chief’s
plan would require
billions of dollars and
weekend outages
BY PAUL BERGER
Andy Byford, New York
City’s new transit chief, believes he can slash decades
from the timeline for modernizing the subway system. But
he admits, his aggressive plan
would cost billions of dollars
and years of rider pain in the
form of weekend outages.
“This plan will need money, it
will need time, it will need political will, and it will need the forbearance of New Yorkers,” Mr.
Byford said in an interview with
The Wall Street Journal. “It will
not be without inconvenience.”
Nine weeks into his new role,
Mr. Byford is crafting a turnaround plan for New York City
Transit, which he hopes to release in May. The most pressing
challenge for the city’s 5.6 million weekday subway riders is
to rapidly update a signal system that largely was installed
between 40 and 80 years ago.
Outdated signals, one of the
leading causes of subway delays, also are a barrier to running more trains each hour
across the system’s 27 lines.
According to recent estimates, it would take about 40
years to resignal the entire system. Mr. Byford believes it
could be done in 10 to 15 years.
He said the agency must
change its priorities and fix the
signaling systems on the busiest lines sooner and faster,
which would improve speed
and reliability for 80% of passengers within a decade. He estimated the total cost at between $8 billion and $15 billion.
To achieve this, the Metropolitan Transportation Authority, which oversees New York
City Transit, would need a significant, short-term publicfunding commitment and a sacrifice from riders—specifically,
many more weekend outages.
Resignaling the system is
“the most disruptive, the most
difficult, but ultimately the
most transformative thing that
we can do,” Mr. Byford said.
Jaqi Cohen, campaign coordinator for the Straphangers
Campaign, said riders already
are used to evening and week-
$15B
Top estimate of Andy Byford’s
proposal for subway overhaul.
end closures for upgrade work.
“If this is a plan that can aggressively turn around service
in a reasonable amount of time,
then that’s great,” she said.
Finding funds for the sig-
nals upgrade won’t be easy.
Even taking into account budgeted fare increases, the MTA
projects a $400 million deficit
by 2020.
Scott Rechler, an MTA
board member appointed by
New York Gov. Andrew Cuomo,
said the agency has to find
new, dedicated sources of revenue. “There’s a clear recognition that we are in a crisis and
that something has to happen
here,” he said.
As head of the agency that
runs the subway and city
buses, Mr. Byford faces myriad
challenges—from overhauling
the MTA with a staff of
50,000, to stemming bus passenger declines and making
more subway stations accessi-
N.J. Drops Some
Gun Investments
Mets Defeat Cardinals 9-4 on Opening Day
KATHY WILLENS/ASSOCIATED PRESS
BY JOSEPH DE AVILA
HOMESTRETCH: Todd Frazier, making his debut with the New York Mets on Thursday at Citi Field, slid into home plate ahead of the
throw to St. Louis Cardinals catcher Yadier Molina in the fifth inning. The run on Adrian Gonzalez’s double gave the Mets a 5-4 lead.
NYPD Wins Case on Shielding Records
BY ZOLAN KANNO-YOUNGS
New York’s highest court
ruled that the New York Police
Department doesn’t have to acknowledge to two Muslim men
who made public-records requests whether or not it has evidence of investigating them.
The ruling Thursday by the
New York Court of Appeals
gives the NYPD a Cold War-era
tool to shield information from
the public, disappointing lawyers and others who said the
decision would hurt efforts to
hold the police accountable.
The case centered on requests in October 2012 from
Talib Abdur-Rashid, an imam in
New York City, and Samir
Hashmi, a Rutgers University
student, for records showing
whether the NYPD investigated
or surveilled them or their affiliated organizations.
Chief Judge Janet DiFiore
said the NYPD could refuse to
confirm or deny information in
“the rare case” because those
submitting the request sought
investigative information on
themselves, which the NYPD
said could risk public safety.
“That is not going to protect
the public against NYPD abuse,”
ble to people with disabilities.
He met Tuesday with operations staff and senior MTA
officials and asked them to rethink the agency’s signal-modernization strategy.
Today, all but one of New
York City’s subway lines use a
block-signaling system in
which the track is divided into
block sections. When a train
enters one section, other
trains are prevented from entering the same stretch of
track until the train in front
has moved on. A modern system, known as “communications-based train control,” allows trains to run closer
together. Mr. Byford said that
system could increase subway
line capacity by 20% or more.
said Omar Mohammedi, the attorney for both petitioners.
An NYPD spokeswoman said
the department would only use
the response “on a very limited
basis and where appropriate.”
The tactic was first used by
the Central Intelligence Agency
in 1976 to shield whether it was
using a ship, the Hughes Glomar
explorer, to retrieve a sunken
Soviet Union submarine.
New Jersey sold off its investments in gun manufacturers that make automatic and
semiautomatic weapons for civilian use, state officials said
Thursday.
The state Department of
the Treasury dumped its investments in gun makers after
reviewing risks to New Jersey’s pension fund following
the February school shooting
in Parkland, Fla., that claimed
the lives of 17 people.
“After the tragedy in Parkland, we examined our holdings to identify companies
which might be adversely financially impacted by a changing landscape as it relates to
certain types of firearms,” said
Chris McDonough, director of
the department’s investment
division.
New Jersey has been winding down investments in gun
makers for some time, officials
said. The state sold its remaining position in Vista Outdoor,
which makes semiautomatic
rifles, Mr. McDonough said.
The division’s decision to
unload its $1.9 million investment in the company was in
the best interest of the pension’s participants, state officials said. The fund still holds
$33.1 million worth of investments in gun firms that make
products for the military and
law enforcement, and other
firearms manufacturers that
make nonautomatic and nonsemiautomatic weapons.
Vista Outdoor didn’t respond
to a request for comment.
Gov. Phil Murphy, a Democrat, applauded the move.
“Military-grade weapons do
not belong in the hands of civilians,” he said in a tweet.
Some public-pension funds
divested investments in gun
makers following the deadly
2012 shooting at Sandy Hook
Elementary School in Newtown, Conn. California’s teacher
and public-worker pension fund
sold investments in firms that
made firearms that are illegal
in the state. Three New York
City pension funds also
dropped their holdings in civilian-firearms manufacturers.
GREATER NEW YORK WATCH
NEW YORK CITY
NEW JERSEY
City Probes if Club
Can Exclude Men
Officers Won’t Face
Charges in Shooting
The city is investigating
whether a private club founded as
workspace and networking hub
exclusively for women violates
the city’s antidiscrimination law by
barring men. A lawyer representing The Wing said it doesn’t violate any city or state laws.
—Associated Press
Four New Jersey police officers
won’t be charged for fatally
shooting a gunman who authorities say fired at them first.
Ocean County prosecutors said
Thursday that the Brick Township
officers were justified in shooting
Keshawn Wilson on Aug. 20.
—Associated Press
Old Fish Makes the Best Sushi, Some Top Chefs Say
BY CHARLES PASSY
The newest sushi fad in
New York City is old, preferably days old.
A number of Japanese
restaurants in New York City
are offering an aged version
of their popular
FOOD &
specialty. Sushi
CULTURE
prepared in this
manner is more
authentic, and
its roots go back hundreds, if
not thousands, of years, they
say. Time is a friend to raw
fish, giving it a richer texture and flavor, they add.
The concept isn’t an easy
sell.
“A big goal is to dispel the
myth that aged fish is
gross,” says Joshua Foulquier, a co-owner of Sushi
Noz, a Japanese restaurant
on Manhattan’s Upper East
Side set to open this weekend. The high-end dining
spot is making aged sushi
the cornerstone of its menu,
charging $300 (tip included)
for a multicourse spread (or
omakase) that includes several varieties of fish.
Sushi Ginza Onodera, the
Michelin-starred restaurant
in Midtown, takes a similar
approach, with multicourse
menu options that run as
high as $400 (tip included).
Three Ways to Age
Fish to Perfection
At Sushi Noz, almost every
fish gets its own aging process. Here are some examples:
Pink snapper: Fish is
lightly salted, inside and out,
and aged for five to 11 days.
Tuna: Fish is cut into a
small block and aged for one
week. The surface, which becomes oxidized, is removed.
Gizzard Shad: Fish is
sprinkled with salt, which is
rinsed off. It is marinated in
vinegar and aged for three to
five days.
Chef Masaki Saito says aged
sushi is simply better sushi.
The fish is tenderized and
transformed during the process, he notes.
“The umami comes up,”
he says, referring to the socalled “fifth taste,” a signature savory element of Japanese and other cuisines.
“If we were to use a tuna
that had been caught an
hour ago, the texture would
be firm and probably nice.
But if we age that fish for a
week or so, the texture will
become delicate and the fla-
vor much more complex,”
says Neal Covington, whose
title is maritime liaison at
Sushi Nakazawa, a Japanese
restaurant in Greenwich Village that also ages sushi.
Aging sushi isn’t as simple
as just letting some fish sit
around for a few days, chefs
note. The process is more
akin to curing. The fish is
typically treated with salt,
soy sauce or vinegar and is
sometimes wrapped in seaweed. From there, it is
chilled for periods that can
range from a couple of days
to slightly beyond a week.
The particulars go beyond
that for truly fussy chefs. At
Sushi Noz, chef Nozomu Abe
uses a special icebox, imported from Japan, for aging
his fish, rather than a refrigerator.
“Electricity cools the fish
too much,” he says.
Hasaki, an East Village sushi spot in Manhattan,
stands out because it has offered sushi in this style since
it opened in 1984. Owner
Bon Yagi admits customers
always have been a bit hesitant about the idea of aged
sushi. “But once they try it,
they say it’s so flavorful.”
Not so, say even some
people with adventurous palates. “If I wanted aged sushi,
Sushi Noz’s Chef Nozomu Abe
prepared 10-day aged tuna,
left, and 11-day aged pink
snapper, above. Below, aged
snapper is served at Sushi
Ginza Onodera in Manhattan.
I could go buy gas-station
maki for $1.99,” says Allen
Salkin, a veteran food writer.
New York City’s Department of Health and Mental
Hygiene says that dining
spots offering the specialty
must adhere to certain rules,
such as those pertaining to
raw fish and cured food
products.
The city also may require
restaurants to submit a plan
outlining the steps they take
to ensure the food is safely
prepared.
MICHAEL TULLPAN; BESS ADLER FOR THE WALL STREET JOURNAL (2)
‘A big goal is to dispel the myth that aged fish is gross’
.
THE WALL STREET JOURNAL.
* *
Friday, March 30, 2018 | A9B
NY
Doctors see us for what we are:
Human.
It doesn’t matter where we’re from,
or what we believe;
when we’re cut, we bleed.
When we’re sick, we suffer.
All of us.
That’s what a doctor sees.
That’s what a doctor heals.
And that’s why we’re so fortunate to have them.
Today, on National Doctors’ Day, NewYork-Presbyterian
would like to thank our doctors and doctors everywhere.
nyp.org
NYP Allen Hospital | NYP Brooklyn Methodist Hospital | NYP/Columbia University Irving Medical Center | NYP Hudson Valley Hospital | NYP Lawrence Hospital
NYP Lower Manhattan Hospital | NYP Morgan Stanley Children’s Hospital | NYP Queens | NYP/ Weill Cornell Medical Center | NYP Westchester Division
.
THE WALL STREET JOURNAL.
A10 | Friday, March 30, 2018
LIFE&ARTS
WARNER BROS.
Aech and Parzival,
two of the avatars in
Steven Spielberg’s
‘Ready Player One’
JUST IN TIME for Easter, Steven
Spielberg gives us “Ready Player
One,” an extravagant action adventure, set in the not-so-distant future of 2045, with an Easter egg at
the center of its plot. The egg is
virtual, one of those secrets hidden in computer games, and most
of the action takes place in the Oasis, a virtual-reality game that
gives players around the globe an
addictive alternative to real-world
squalor. At many points along the
way, the film bears its maker’s
masterly mark—vertiginous
chases, startling vistas, beguiling
humor, bright flashes of young romance. Yet Mr. Spielberg serves
both as sorcerer and apprentice.
The technology that enabled him
to conjure up all this spectacular
stuff seems to have taken on a life
of its own. Though the multilayered script has a lot on its mind,
ideas as well as feelings must compete with a relentless succession
of computer-generated sequences
that don’t differ all that much
from what audiences see on multiplex screens every summer.
The story begins in a trailer
park in Columbus, Ohio. (Zak Penn
and Ernest Cline based the screenplay on the latter’s young-adult
novel.) It’s a vertical park, a soaring jungle gym of a housing development called the Stacks, and
Janusz Kaminski’s camera peers at
some of its residents, VR headsets
strapped on their heads, as they
twist, turn, leap, writhe or punch
in the confines of their dismal
apartments. They are simultaneously elsewhere, of course, as avatars roaming the Oasis. “These
days reality is a bummer,” explains
FILM REVIEW | By Joe Morgenstern
In ‘Player,’ Motion
Trounces Emotion
Wade Watts (Tye Sheridan), the
nerdy, sweet-spirited narrator/hero
whose avatar, Parzival, is a variant
of Perceval, one of the knights who
found the Holy Grail.
The grail Wade seeks is the ultimate Easter egg, hidden in the
deepest recesses of the game by
its creator, James Halliday (Mark
Rylance). A lonely genius in life,
Halliday is worshiped in death as
something between a cybersaint
and a godhead. In the three-part
quest he devised, whoever manages to find the prize inherits the
Oasis and the matchlessly powerful corporation that owns it.
Part of the fun of this scheme
lies in anonymity—no one knows
who’s behind the avatars in real
life—and the slow reveal of identities. Wade’s companions in the
treasure hunt wear, in addition to
VR visors, haptic suits, boots and
gloves to register tactile experience. They call themselves the High
Five, and they include a whimsical
colossus called Aech, and a feisty
female street fighter named
Art3mis, which is a variant of Artemis, the goddess of the hunt.
She’s a dazzler, as avatars go—
her exquisite triangular face is
topped by an electrified upsprouting of auburn hair—who turns out
to be a lovely young woman
named Samantha, played by Olivia
Cooke. (Ms. Cooke was the girl of
the title in “Me and Earl and the
Dying Girl.”) The High Five’s evil
rival, Sorrento (Ben Mendelsohn),
runs another huge company in the
cyberspace industry, so it’s a contest between corporate greed and
gamer purity, though you have to
wonder how pure the kids will remain if they inherit the Oasis and
all the wealth that comes with it.
Another source of fun—maybe
the main source, depending on
one’s level of residual geekdom—
comes from nostalgia. Wade wishes
he’d grown up in the 1980s, during
the flowering of cool technology
that was enshrined in now-classic—or classically silly—motion
pictures. “Ready Player One,”
whose title derives from the opening display on an Atari screen, is a
living museum that Easter-eggs us
on with countless ’80s references,
many obscure and others as obvious as Parzival’s DeLorean (from
everyone knows what Robert Ze-
THEATER REVIEW | By Terry Teachout
DECLINE AND TRIUMPH
BRIGITTE LACOMBE
The WSJ Daily Crossword | Edited by Mike Shenk
PUZZLE
CONTEST
54 Prepare to
advance
14
15
16
56 Corrida cheer
57 Flexible wood
17
18
19
58 Tractor name
18 Mulligan
20
21
22
23
22 Ayers Rock,
60 Squeal (on)
alternatively
62 What state
24 25
26 27
28
capital is known 24 Fish and chips
29
30 31
32
fish
for its vast tree
canopy?
25 Be behind
33
34
35
36
A) Little Rock;
27 Exciting
37 38
39
B) Providence;
28 One may be
C) Carson City;
sworn
40 41 42
43
44 45 46 47
D) Sacramento
31 Some are fine
66 Toiling
48
49
50
51
34 “Memoirs of a
67 Bitter-___
Geisha” setting
52
53
54 55
68 Kind of
36 Nashville
69 Salty septet
university
56
57
58 59
70 Brainy bunch
38 Vehicle with
60
61
62
63
64 65
71 Island grains
voltage
Down
39 Lipstick color
66
67
68
40 Tecate
1 Noted 19th
69
70
71
alternatives
2 MSN, e.g.
41 Inquiry from the
3 Playground
frazzled
poppers
MULTIPLE CHOICE TEST | By Matt Gaffney
42 Abuja’s nation
4 Short period
The answer to
19 Guru Granth
37 What element
5 Closer’s success 45 It’s close to rose
this week’s contest
Sahib studier
has atomic
46 Obama cabinet
6 Contract law
number 70?
crossword is a unit
20 Bygone
member
figure
you might encounter
A) tellurium;
toothpaste
47 Egyptian menace
7
Swimmer
on a geometry test.
B) americium;
21 Lucy of “Chicago”
49 Colorless gas
sometimes
C) ytterbium;
23 Wide size
Across
smoked
50 Article
D)
ruthenium
24 Might
1 Little jerks
53 Ruhr city
8 Curved sword:
40 Quiet craft
26 Which of these
5 Project deets
Var.
55 Sectors
43
Green
and
others
men never won
10 Alternative to
9 Navarre setting
59 Eavesdropping
44 Summer camp
Wimbledon?
-ville
pair
10 King and others
letters
A) Bjorn Borg;
14 “Yesterday!”
61 Some scans
11 Sets right
B)
Ivan
Lendl;
48
Drops
15 Have gotten out
63 LT’s superior
12 Cleared
C) Yvon Petra;
49 Shiitake kin
of bed
64 Darken
13 Play with
D)
Fred
Perry
51 Spa sounds
16 Grill link
Venetians
65 Not normal
29 Hold
17 What was the
52 What opera title
30
Sanctuary
colonial name of
Previous Puzzle’s Solution
character is a
32 Up to
F O R K
R E T R O
A G E S
Burkina Faso?
court jester?
O
B I E
I V I E S
Y O R E
33 School piece
A) Tanganyika;
A) Rigoletto;
R A C E
C A L F L A N D O N
35 Fighter in gray
A D O P T E D
S OW S T A
B) Cape Colony;
B) Lohengrin;
G I T
O R E L
A C E I T
C) Upper Volta;
36 San Joaquin
C) Don Carlos;
E A T I N
A B E Y A N C E
S H A N K A A R O N
R D A
D) Basutoland
Valley city
D) Agrippina
1
2
3
4
5
6
7
8
9
10
11
12
13
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, April 1. A solver selected at random
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Complete contest rules at WSJ.com/Puzzles. (No purchase necessary.
Void where prohibited. U.S. residents 18 and over only.)
s
EDWARD ALBEE may have been one of
whole vistas—of decline, of obsolescence, peAmerica’s greatest playwrights, but he was
culiarity, but really interesting!”
box-office poison between 1975, when he won
Ms. Jackson, who is returning to Broada Pulitzer Prize for “Seascape,” and 1994,
way after a 30-year hiatus, gives an acrid,
when the off-Broadway premiere of “Three
wised-up performance that is as pointed as
Tall Women” brought him a third Pulitzer afyou’d expect from so celebrated an actor. It’s
ter a string of flops. That “Three Tall
no better, though, than that of Ms. Metcalf,
Women” subsequently failed to move to
who’s as memorable here as she was in
Broadway remains an impenetrable mystery,
“Lady Bird,” while Ms. Pill acquits herself
but it’s there now at last, staged with no-non- well as their foil. Mr. Mantello has opted to
sense clarity by Joe Mantello and starring
perform “Three Tall Women” without an inGlenda Jackson, Laurie Metcalf and
Alison Pill. I trust you’ll need no
urging to buy a ticket, assuming you
can snag one: It’ll be a long time before “Three Tall Women” is performed by a better cast.
“Three Tall Women” is a conversation piece set in the bedroom of a
rich, senile woman (Ms. Jackson)
who is looked after by a long-suffering paid companion of a certain age
(Ms. Metcalf) and is being visited by
a young lawyer who takes care of
her estate (Ms. Pill). In the first part
of the play, Ms. Jackson’s character
Alison Pill, Glenda Jackson and Laurie Metcalf
gabbles randomly, incessantly and
revealingly about her long and
eventful life. Then she has a stroke, at which
termission, a smart decision that makes it
point the three actors suddenly metamoreven tauter, though Miriam Buether’s secondphose without authorial explanation into heract set, which adds a surrealistic touch to the
self when young, middle-aged and very old.
play, is over-elaborate in a way that would
Each of her three selves talks, this time more
probably have irked the author. I have no
directly, about a different phase of her life,
other caveats, though: This revival is entirely
after which the lights go out, both literally
worthy of a play that may come in time to be
and figuratively. That’s all there is to “Three
seen as the best thing Mr. Albee ever wrote.
Tall Women,” but it’s enough. Mr. Albee has
Three Tall Women
given his three women (whom he acknowlJohn Golden Theatre, 252 W. 45th St. ($49edged to constitute a group portrait of his
$149), 212-239-6200, closes June 24
own adoptive mother) fascinating things to
say about the character whom they collecMr. Teachout is the Journal’s drama critic.
tively embody, never more so than when Ms.
Write to him at tteachout@wsj.com.
Metcalf reflects on middle age: “It opens up
meckis film); a Rubik’s cube that’s
called a Zemeckis cube; John
Hughes films; a terrific riff on “The
Shining”; a lyrical riff on “Saturday
Night Fever”; Duran Duran; Michael
Jackson’s “Thriller”; Chuckie;
“Buckaroo Banzai” and on and on.
All of it culminates in a race,
derived from the Atari game “Adventure,” that brings together not
only the Iron Giant, an interloper
from Brad Bird’s 1999 animated
feature, but such deathless denizens of the action genre as King
Kong and Mechagodzilla, and
sends everyone and everything careening through Manhattan landmarks that warp and unfold like
the cityscapes in Christopher Nolan’s “Inception.”
But what is wrong with this
part of the picture, aside from the
mind-numbing jumble of images
that constitutes its pride and its
heavy burden? (In fairness I
should note that the critics screening I attended was in 2-D; maybe I
missed something in the 3-D version.)
A clue can be found in the Amblin Entertainment logo that opens
the show. It’s the stark and unfor-
gettable silhouette from Mr. Spielberg’s 1982 masterpiece, “E.T.”—
the boy on his bike with the
extraterrestrial hidden in plain
sight on the handlebars. You don’t
have to be a geek to remember
how your heart soared when that
bike lifted magically into the sky,
or how the director’s other action
films of the decade—which are understandably scanted in the copious references of this new one—
provided such pleasures as the
wry charm of Harrison Ford’s
whip-snapping adventurer in
“Raiders of the Lost Ark”; the
swooping and coursing of terrified
crowds in “Empire of the Sun”; or
the roller-coaster simplicity of the
minecart ride in “Indiana Jones
and the Temple of Doom.”
One of the oddities of Mr.
Spielberg’s direction this time
around is that a filmmaker often
faulted for a sentimental streak
has made a film mainly, though
not entirely, notable for emotional
remove. That’s the nature of the
production, to be sure, and it
misses the point to ask, as some
have recently, whether he’s still
able to have fun at the age and
status he has attained. Sure he is.
He must have had great fun making this immense Tinker Toy of a
movie, but there’s a fundamental
mismatch between artist and material. Haptics weren’t needed to
feel the emotional pull of his best
films; they aimed for the heart
and hit much more often than
they missed. “Ready Player One”
aims for the adrenal gland.
Whether it reaches its target, and
its young target audience, remains
to be seen.
O
R
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N
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P A L MG
A
V E I
R P A S S
T O
H
R I M
S T B A K
A
I D E
S
S E A
R I E
N D I
G
A S H
T U T
E R
A L
M Y
R
E S E
L A D
M I
T U T
I R O
F A R
F I S
L
E
T
S
N
O
T
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | A11
NY
TELEVISION REVIEW | By John Anderson
The Trauma of
The Missing
IT’S A HAZARD OF the acting trade that the more emotionally painful or profound a
role, the more attuned an audience will be to the forced,
false note. So there’s something near-miraculous about
the performances in “The
Child in Time,” Sunday’s
“Masterpiece” presentation
featuring Benedict Cumberbatch and Kelly Macdonald in
a story that both viewer and
do. They do it splendidly.
Director Julian Farino,
known mostly for his work on
television, can handle actors,
it seems, but he’s also an exemplar of economic visual
storytelling: the eloquence of
Stephen’s single toothbrush
occupying the erstwhile family bathroom; his pained
glances at other people’s children; an exchange with a
neighbor, who cautions Ste-
Beatrice White and Benedict Cumberbatch, above; Kelly
Macdonald and Mr. Cumberbatch, top
performer might approach
with trepidation: During a
routine trip to the supermarket, the 4-year-old daughter
of the well-known children’s
book writer Stephen Lewis
(Mr. Cumberbatch) simply
disappears. He loses sight of
her for just a moment. The
moment devours his life.
The dread is unleashed;
the pain is unthinkable. And
Stephen and his wife, Julie
(Ms. Macdonald), are
wretched, of course, especially in the immediate aftermath of the vanishing. But
the actors are convincing,
honest and heartbreaking. It’s
the hardest kind of thing to
phen about the note he’s taping to his door—something
that, we immediately understand, he posts whenever he
leaves the apartment. “You
don’t want to advertise you’re
out,” the neighbor says cheerily. But Stephen does: In his
absence, someone might
come with news of his daughter. Or his daughter.
“The Child in Time” is in
no way a conventional story.
It’s not a search or pursuit;
it’s not a mystery, per se. The
novel, by Ian McEwan, was
published in 1987, a period of
generalized paranoia about
child abductions, exemplified
by missing kids on milk car-
tons. Mr. McEwan,
something of a
modernist, created
a book that, within
its covers, experiences its own grief
and rationalization:
It looks for distractions, and for other
characters to follow.
Stephen’s friend, the
overachieving politician Charles Darke
(Stephen Campbell
Moore), for instance, who is
slowly coming
apart. Or Stephen’s
parents, who seem
incapable of mentioning their granddaughter’s name.
The tangential
stories always lead
away from thoughts
of the missing Kate
(Beatrice White),
but then they always double back, somehow,
to the idea of children and
childhood: Stephen is an author of children’s books who
sits on a government panel
devoted to childhood education. During a trip to see Julie, several years after their
daughter’s vanishing, Stephen
looks through a pub window
and sees his youthful parents—at the time, his mother
later tells him, that she was
pregnant with Stephen. His
friend Charles, in his mania,
is “searching for a child”—
that child being himself.
There’s a bit of compression in this otherwise faithful adaptation by Stephen
Butchard. And a more
straightforward line between
the abduction, shown in
flashback, Stephen and Julie
leading their separate lives,
and the only conclusion possible in a film that aims for
emotionally honesty without
leaving its audience suicidal.
Several of the book’s incidental male characters are
made female, which makes
no difference, though
Charles’s wife, Thelma (Saskia Reeves)—a physicist
whose intelligence so intimidates Stephen in the book—
has been made a standardissue worried wife.
Ms. Reeves is fine as always, though; likewise Ms.
Macdonald, of whom one
never sees enough. And despite all the “Cumberbunny” nonsense, Mr. Cumberbatch is a first-rate actor
who carries most of the
movie on Stephen’s weary
shoulders. It seems necessary to point out that “The
Child in Time” is neither
bleak, nor overly involved
with its own metaphysics,
though at the same time it’s
really not just about one
missing child. It’s about the
idea of the child that everyone was, or is, and which exists without regard for time.
The Child in Time
Sunday, 9 p.m., PBS
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
30s
40s
0s
Seattle
<0
30s
10s
Calgaryy
50s
Vancouver
0s
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Bismarckk
Helena
Salt Lake
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80s
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Angeles
Los A
Angel
80s
San Diego
90s
Phoenix
Ph
Topeka
hit
Wichita
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40s
Ft. Worth
A
ti
Austin
70s
U.S. Forecasts
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
36 22 pc 35 22 s
Atlanta
68 43 pc 69 48 s
Austin
77 55 s
82 59 s
Baltimore
64 35 r
61 45 s
Boise
65 43 pc 63 42 pc
Boston
60 38 r
55 43 s
Burlington
48 28 r
51 37 pc
Charlotte
76 41 pc 69 48 s
Chicago
50 38 pc 52 22 sh
Cleveland
42 31 pc 53 28 sh
Dallas
74 57 s
80 60 s
Denver
64 33 pc 54 27 c
Detroit
48 33 pc 51 25 r
Honolulu
83 69 s
82 70 pc
Houston
79 55 s
81 61 s
Indianapolis
51 35 pc 53 28 sh
Kansas City
57 46 pc 54 26 c
Las Vegas
83 61 s
87 64 pc
Little Rock
67 45 pc 75 49 pc
Los Angeles
78 57 pc 76 58 pc
Miami
83 70 pc 82 70 c
Milwaukee
47 35 pc 49 20 sh
Minneapolis
44 29 c
30 15 sf
Nashville
60 40 pc 70 45 pc
New Orleans
75 57 pc 76 56 s
New York City
62 40 r
58 45 s
Oklahoma City
67 50 s
72 36 c
70s
80s
90s
100+
70s
C
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Columbia
Warm
Rain
Cold
T-storms
Stationary
Snow
Showers
Flurries
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Mobile
70s
Houston
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San
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Anchorage
A h g
Memphis
hi
Atlanta
Atl
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Birmingham
Dallas
D
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New
ew Orleans
80s
50s
60s
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on D.C.
DC
Washington
p i gfi ld
Springfield
Kansas
Ch
Charleston
h
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Richmond
City
St.. Louis Lou
LLouisville
ill
l i h
Raleigh
Nashville
h ill
Charlotte
Ch
Oklahoma City
Tucson
El P
Paso
40s
Mpls./St.
pls / Pa
Paul
50s
Santaa FFe
A
b q q
Albuquerque
30s
50s
Buffalo
Detroit
t
60s
C
d
Colorado
p g
Springs
A
Augusta
T
Toronto A
b y Boston
Albany
t d
Hartford
k
Milwaukee
wY
New
Yorkk
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ll
Sioux
Philadelphia
Philad
h d ph
Cleveland
Cleve
d
Chicago
h
g
50s
Pittsburgh
g
60s
h
Omaha
es Moines Indianapolis
Des
d
p
40s
Pierre
Reno
Sacramento
Ottawa
30s
Billings
i
Boise
70s
20s
40s
Montreal
Eugene
70s
10s
ip
Winnipeg
20s
Portland
P
d
60s
0s
20s
Orlando
l d
Ta
p
Tampa
80s
Miami
80s
Ice
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Hi
57
88
63
89
44
56
60
80
55
68
74
64
56
50
65
Today
Lo W
38 pc
65 pc
38 r
64 s
28 r
33 r
45 c
53 pc
43 pc
47 pc
52 pc
35 pc
43 c
24 c
40 pc
Tomorrow
Hi Lo W
41 24 pc
78 65 t
61 44 s
92 69 pc
55 31 pc
51 38 pc
64 42 pc
81 51 pc
57 30 sh
70 49 c
69 53 pc
70 39 pc
60 40 pc
30 19 pc
64 49 s
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
54
67
76
93
65
50
54
86
95
46
42
Today
Lo W
39 pc
53 pc
56 s
78 pc
48 pc
35 pc
39 sh
63 s
74 s
37 sh
36 r
Tomorrow
Hi Lo W
51 35 c
69 58 pc
78 57 s
89 78 pc
73 51 pc
43 34 r
53 37 t
84 61 pc
92 75 s
45 36 pc
42 28 pc
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei City
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
56
51
87
80
55
92
57
81
49
53
88
73
76
60
34
90
50
86
101
65
81
67
70
88
85
81
61
45
53
55
58
Today
Lo W
40 sh
38 r
60 s
72 s
47 s
75 pc
49 c
58 pc
39 r
41 c
75 s
52 pc
49 pc
47 t
25 pc
79 pc
38 sh
75 s
73 pc
53 r
73 s
46 s
54 pc
77 t
70 s
68 pc
47 s
29 c
39 pc
37 pc
37 r
Tomorrow
Hi Lo W
54 38 pc
54 38 t
84 65 pc
80 70 s
64 53 pc
90 76 t
65 50 s
79 60 pc
51 39 sh
57 39 pc
88 75 pc
76 54 s
77 48 pc
56 41 pc
38 32 c
91 77 pc
54 40 t
88 75 c
86 67 pc
61 46 t
81 73 pc
64 48 s
73 57 pc
87 77 t
76 68 c
82 66 s
61 52 s
48 23 r
53 39 pc
54 44 sh
50 35 sh
FILM REVIEW | By Joe Morgenstern
EARTHY, YEASTY, LOVELY
MUSIC BOX FILMS (2)
PINEWOOD TELEVISION/SUNNYMARCH TV/MASTERPIECE (2)
LIFE & ARTS
Ana Girardot, Pio Marmaï and François Civil, above; Mr. Civil, Mr. Marmaï and Ms. Girardot, below
BEFORE I EXPLAIN my slightly conditional affection for “Back to Burgundy” I
should declare my unconditional admiration for Cédric Klapisch, the man who directed it, and who wrote it with Santiago
Amigorena. With a strong sense of such
traditional values as family (thus his lovely
chamber piece “Family Resemblances”)
and a sharpness of eye that might befit an
ethnologist (his comedy “When the Cat’s
Away” is as much about urban renewal and
Parisian neighborhoods as it is about a lost
kitty), Mr. Klapisch always has interesting things to say. As for his
latest film, I suspect—indeed j’accuse—him of cobbling some wellworn plot elements together just
to be able to make a movie about
wine, and to shoot it in Burgundy.
But that’s a perfectly reasonable,
not to mention admirable, thing
for a French filmmaker to do.
The story is set in motion when
Jean (Pio Marmaï) returns to the
town of his birth, and the winemaking domain of his family, after
his father falls ill; he’s been away
for a decade in Australia, making
his own wine. Does that lead to
tensions and resentments among Jean, his
sister and brother? Well, yes, absolutely,
that’s another element of the plot. They’ve
been doing fine without him, thank you
very much, and Jean’s unexpected arrival
comes at a delicate moment when his sister, Juliette (Ana Girardot), and his
brother, Jérémie (François Civil), must decide on what day to begin their vendange—
the harvest that will determine the character and fate of this year’s wine.
And wait, there’s even more plotty stuff
to contend with: the vagaries of nature
(the domain manager says it won’t rain
and a smartphone app agrees, so it rains),
plus the pressures of a globalizing economy on real-estate values. (The most profitable solution would be to stop messing
with fussy grapes and simply sell the land,
though that’s complicated by the terms of
a family trust. In other words, intersecting
plot elements that were dealt with in two
movies by Alexander Payne, “Sideways”
and “The Descendants.”)
Still, the family dynamics work out beautifully, and Jean’s return also leads to a
deeply affecting revelation of his father’s
feelings for him. As far as winemaking is
concerned, “Back to Burgundy” is rich in
vistas of the fabled côtes; stuffed with oenophile info (who knew how directly de-stemming affects a wine’s structure?); and studded with casual tastings of wines that most
of us can only dream of. A 1990 Pommard?
A 1995 Meursault Perrières? Stop the projector for a short salivation.
.
THE WALL STREET JOURNAL.
A12 | Friday, March 30, 2018
SPORTS
NBA
Harden’s Stepback Is a Step Ahead
The Rockets star has
found a shot that’s
basically unguardable
Houston
THE MOST spectacular play of
this NBA season began like so
many other Houston Rockets possessions. James Harden isolated
his defender on the perimeter. The
Rockets spread themselves across
the court to let him do the one
thing he does better than anyone
in the history of basketball.
Before he could take yet another stepback 3-pointer, though,
something oddly exciting happened: absolutely nothing.
Harden lowered his right shoulder, drove to his left, stopped and
inched behind the 3-point line. But
he didn’t shoot. He stared. Los Angeles Clippers forward Wesley
Johnson was supposed to be
guarding him. Instead he was on
the court splayed like a crab.
Harden’s stepback gave him
enough time and space to glare at
Johnson for two full seconds before he finally deigned to shoot.
It was the perfect encapsulation
of a season in which Harden has
stumbled upon a weapon the rest
of the NBA is powerless to stop.
Harden’s stepback 3-pointer is as
revolutionary as Stephen Curry’s
deep, off-the-dribble 3-pointer. It’s
a shot that’s basically unguardable.
It’s the reason he’s likely to be the
league’s most valuable player. It’s
something extraordinary that only
he could make ordinary.
“He’s a step ahead of the game,”
Rockets coach Mike D’Antoni said.
Harden takes more stepback 3pointers than any NBA player. But
that doesn’t even begin to describe
how much of an outlier this shot
makes him. Because it doesn’t
make sense to compare him with
NBA players. Harden has attempted more stepback 3-pointers
this year than any NBA team.
There are six whole teams that
haven’t taken as many combined as
Harden has taken by himself. The
league average this season excluding
the Rockets is 60. The Denver Nuggets lead the NBA with 113. James
Harden alone has attempted 157.
“It’s actually crazy,” Rockets
general manager Daryl Morey said.
Here’s what’s especially crazy:
not how many Harden takes but
how many Harden makes.
These are shots that require him
to be fading away from the basket
several feet behind the line with a
NATHANIEL BUTLER/NBAE/GETTY IMAGES
BY BEN COHEN
Houston Rockets guard James Harden shoots the ball over Kevin Durant during a game against the Golden State Warriors on Jan. 20.
hand in his face and some impossibly large man lunging at him. And
yet Harden is shooting a remarkable
45.9% on his stepback 3-pointers.
He’s shooting 32.5% on his catchand-shoot 3-pointers, according to
NBA data, and even on his open 3pointers he’s only shooting 39.1%.
Let’s take a step back to understand exactly how bananas that is.
Harden gets 0.75 points of value
per shot attempt in the mid-range,
1.1 points behind the 3-point line
and 1.26 points around the rim—
layups and dunks that should
carry the highest returns. Except
they don’t for Harden. And that’s
because he is getting 1.38 points
on his stepback threes.
His stepback 3-pointer is a useful window on how and why the
Rockets have won 31 of their last
33 games with the best record in
the league and the best offense in
the history of the league. It’s both
a reflection of the way they think
off the court and the result of everything they do on the court.
Harden may be the only player
in the league with the lower-body
strength to make the stepback an
essential part of his game. When
he visited the Peak Performance
Project sports laboratory two
years ago for biomechanical tests,
Harden learned that he ranked in
the 99th percentile of professional
athletes in one peculiar area: how
quickly he stopped his downward
momentum after jumping. Harden
was the fastest at slowing down.
That braking system is the secret
to his stepback. Curry has the sublime hand-eye coordination to shoot
3-pointers from previously unimaginable distances. Dirk Nowitzki was
tall enough to sneak his one-legged
fadeaway over any defender.
Harden uses his superior deceleration to create the space he requires
for his stepback 3-pointers.
The Rockets, the first team to
shoot more 3-pointers than 2-pointers, love things not a lot of people
think they should be doing. But
they didn’t enter this season writing on the erasable walls in D’Antoni’s office that Harden should
break his own existing record for
stepback 3-pointers. This idea was
as much serendipity as strategy.
Here’s the way D’Antoni himself de-
scribes the process by which he realized Harden taking a stepback 3pointer was a good shot: “Ooooh,
look at that! That looks good.”
Harden is meticulous about creating and exploiting mismatches
whenever and wherever he can
find them. He usually picks one
player to isolate—either his own
defender or a big man who
switches onto him—and then picks
on him. The guy stuck guarding
Harden finds himself on an island.
The other Rockets and their defenders are standing far enough
away that if they were standing
any farther they would have to pay
for their seats. They become useful
by disappearing. Because he no
longer needs his teammates at that
point: All but two of Harden’s stepback threes have been unassisted.
What becomes painfully obvious when you re-watch his 157
stepbacks is that it doesn’t seem
to matter who’s guarding Harden
once he’s isolated. He counts
guards, wings and even the game’s
defensive stars like Draymond
Green and Paul George among the
victims of his stepbacks. But there
is no one he enjoys roasting more
than a big man.
He’s shooting 55% on his stepback 3-pointers over the rim-protectors he drags out to the perimeter,
according to The Wall Street Journal’s analysis. The incomplete list of
bigs who couldn’t stop his stepback
3-pointers this season includes Anthony Davis, Giannis Antetokounmpo, Nikola Jokic, Marc Gasol, Al
Horford, LaMarcus Aldridge, Myles
Turner and Towns three times.
Give him too much space, and
he shoots. Get too close to him,
and he drives. Do everything right,
and he drills a stepback three.
That’s what happened in a game
against Portland last week. Harden
isolated Damian Lillard directly in
front of the Trail Blazers’ bench.
Portland coach Terry Stotts could
see the inevitable coming and
begged for help. Al-Farouq Aminu
rushed to double-team Harden. It
was all useless. Harden took one
bunnyhop and made his fifth stepback 3-pointer of the night over
both of them.
How do you guard that?
“You don’t,” D’Antoni said.
GOLF
Top, Feng Shanshan poses with the Chinese flag. Below,
Li Haotong is set to make his Masters debut next week.
BY BRIAN COSTA
LI HAOTONG has been playing golf
in the U.S. for about three years,
long enough to notice just how
much this country imports from his
home country.
“You guys are going to die without China,” he joked. “Toothbrush,
everything. Everything you can
think of: made in China.”
Except, until recently, elite professional golfers. That is changing
quickly.
On Thursday, Feng Shanshan
will begin the first women’s golf
major of the year, the ANA Inspiration in Rancho Mirage, Calif., as the
top-ranked player in the world. She
became the first Chinese golfer to
earn that coveted status last fall.
One week later, Li will tee off at
the Masters as the highest-ranked
Chinese male golfer ever, at No. 41
in the world. Last summer, at age
21, he finished third at the British
Open. Earlier this year, he edged
Rory McIlroy to win the Dubai
Desert Classic.
“We can show the world the Chinese can play golf,” Li said, though
people in the business of golf see
much more than a point of pride in
their ascent. They see the potential
to awaken the sport’s sleeping giant.
For all its wealth, and a population of 1.4 billion, China has never
particularly taken to golf. Mao Zedong banned the sport while leading China’s socialist transformation
starting in 1949, viewing golf as
too elitist. There was a course construction boom in the early 2000s,
though that stalled in recent years
amid government crackdowns on
corruption, which made golf-play-
ing by officials a taboo and on the
overbuilding of golf courses, which
was seen as wasteful.
The more Chinese golfers ingrain themselves in the upper echelon of the sport, the more hope
golf executives see in a country
where growth has been plodding
and uneven at best.
“Given the expanding middle
class in China and the number of
people, if there is even a fraction
of interest from there that compares to Japan or Korea, the future has a high potential,” said Ty
Votaw, the PGA Tour’s head of
global business affairs.
The precedent both the PGA
Tour and the LPGA can look to is
just east of China. Golf was not
widely popular in South Korea until Pak Se-ri became a force on the
LPGA in the late 1990s. The country has since become a hotbed for
the sport, and its corporations
have become essential to the financial health of the LPGA.
But the obstacles are greater in
China, where more than 200
courses have been closed as part
of President Xi Jinping’s war on
government corruption and gaudy
symbols of wealth. Fewer than 500
courses remain in the country.
Gareth Winslow, a New Zealandborn golf coach who works in
Shanghai, lost two jobs in recent
years when a course and a driving
range where he worked were
abruptly shut down. “The bulldozers come in and just knock everything down, so there aren’t a lot of
options after that,” he said.
Li, Feng and the Chinese golfers
coming up behind them can’t
change policies, but they can raise
the profile of the sport. Feng, now
T-B: ZHE JI/GETTY IMAGES; SADIQ ASYRAF/ASSOCIATED PRESS
THE NEXT CHINESE
TRADE ADVANTAGE
28, picked up golf at the age of 10
from her father, who worked for
the Chinese Golf Association. At
the time, most of her friends
didn’t even know what golf was.
“I would say that I finished like
second in the national junior championship,” Feng said at a news conference in November. “They will be
like, ‘Oh, that’s super,’ but they
don’t know actually what golf is.
They don’t know I only had like
three competitors in my group.”
Likewise, Li started out caddying for his father, a golf fanatic
who owned a car dealership in Hunan. “He said if one day you take
me down, I’ll quit and you can
play,” Li said. “One and a half years
later, I beat him and he quit.”
Li’s parents now travel the
world with him as he splits time
between the European and PGA
tours. His mother became an internet sensation last summer when
she waded into a water hazard at
the French Open to retrieve a putter her son had thrown into it in
frustration. Only after she was
nearly waist-deep in a pond did
she realize Li had snapped the putter in half before he chucked it.
Easing the transition to tour life
for both Feng and Li is the fact that
they learned to speak English relatively quickly. Li said he picked up
the language by listening to other
players’ conversations and asking
them to type words he didn’t know
into a translation app on his phone.
On an errant tee shot, he will now
even yell at his ball in English.
Still, the rise of Feng and Li was
fueled more by how much golf covets China than the other way
around. Feng got an offer from a
top American coach, Gary Gilchrist,
to train with him as a teenager. Li
got on the PGA Tour China—which
returns this year after struggling
to obtain approval for tournaments
in 2017—at the age of 14.
Winslow, the coach, said junior
golf academies have become more
popular among affluent parents
who view the sport as a path to a
scholarship at a U.S. college. But
even courses that haven’t been
shut down are typically high-end
and ultra-expensive. Few offer
greens fees below $200.
If Chinese professionals continue to make headlines overseas,
it may draw more wealthy Chinese
to the game, Winslow said, “but if
China wants to become a global
power in golf, there needs to be
more accessibility.”
.
Friday, March 30, 2018 | A13
THE WALL STREET JOURNAL.
OPINION
In for a Penny, in for Impound
Plenty of Republicans remain bitter
that
their
party passed
that bloated
POTOMAC $1.3 trillion
omnibus—alWATCH
most as bitter
By Kimberley
as President
A. Strassel
Trump, who
felt pressured
to sign it. But this fight
doesn’t have to be over.
Across Washington, principled conservatives are noodling with an idea that—if
done right—could be a political winner. It’s a chance for
Republicans to honor their
promises of spending restraint and redeem themselves with a base turned off
by the omnibus blowout. It’s
an opening for the GOP to
highlight the degree to
which Democrats used the
bill to hold the military hostage to their own domestic
boondoggles. And it’s a
chance for Mr. Trump to
present himself again as an
outsider, willing to use unconventional
means
to
change Washington’s spending culture.
It’s called the 1974 Impoundment Act, which allows
the president to order the
rescission of specific funds,
so long as Congress approves
those cuts within 45 days.
The act hasn’t seen a lot of
use in recent decades. Barack
Obama never saw a spending
bill he didn’t like, and
George W. Bush never sent
any formal rescission proposals to Congress—likely because he took the position
that presidents ought to have
a fuller line-item veto power.
Many conservatives agree,
though Ronald Reagan used
rescission where he could
and holds the title for most
proposals. Even so, the total
amount all presidents since
1974 have put forward for rescission ($76 billion) and the
amount Congress ultimately
approved ($25 billion) remains pathetic.
Republicans could change
that. Their control of the
White House and both
chambers gives them an unusual opportunity to cut big.
Under the Impoundment
Act, a simple majority is
enough to approve presidential rescissions—no filibuster. It’s a chance to take a
hacksaw to the $128 billion
by which the omnibus exceeded the 2011 domesticspending caps—everything
from carbon-capture technology to pecan producers to
the Gateway Tunnel Project
to the Environmental Protection Agency.
The political danger here
rests in Mr. Trump moving
unilaterally, with a rescission package that shames
his fellow Republicans in
Congress and puts them at
greater risk in the midterms. The trick is instead
for House Speaker Paul
Ryan and Senate Majority
Leader Mitch McConnell to
request Mr. Trump go the
impoundment route, or for
the White House and congressional leaders to make a
joint announcement.
Which gets to the other
trick—getting congressional
Republicans to come on
board and take credit for
spending cuts. The GOP is
correct that most of the
spending hikes were at Democratic demand, but many
Republicans used that as an
excuse to stuff in their own
pork. Messrs. Ryan’s and
McConnell’s job is to explain
that, with midterms at stake,
the party needs to prove it
can do a better job with the
How Trump and the
congressional GOP
can undo the worst
of the omnibus.
federal fisc.
They can sweeten the deal
by reminding members that a
successful rescission allows
them not only to brag that
they are working on spending-restraint promises, but to
highlight the Democratic role
in pumping up the original
numbers, and to emphasize
specific Democratic outlays
that they stopped. Wholesale
cuts in domestic agencies—
like the EPA or the Education
Department—would also put
them closer in line with Mr.
Trump’s proposed budget, a
huge winner with conservative voters.
Most important, this is a
vivid way for the GOP to explain to voters the importance of allowing it to continue to hold both chambers
of Congress. Democrats will
continue raising their outrageous spending demands, and
holding out the threat of
shutdown whenever the GOP
doesn’t comply. Let them. If
Republicans show they can
successfully use rescission to
fix the damage, that threat is
neutralized.
This is the kind of victory
the GOP needs to show it can
govern, and to motivate voters
to turn out in November.
Mr. Trump, meanwhile,
gets to revive an overlooked
tool as part of his campaign
to upend Washington culture.
He was clearly undecided
whether to sign this ugly bill,
and this allows him to follow
up with a strategy to kill its
most offensive pieces. And
you can bet Mr. Trump, who
is never happier than when
bragging, will make much of
that win on the midterm
campaign trail.
No, the GOP can’t use this
to insert policy riders they
failed to get the first time
round. And yes, there had
better be some thought put
into this before anyone pulls
the pin. If Messrs. Ryan and
McConnell aren’t willing to
strong-arm their majorities
to yes, they’d best not
bother. Failing after floating
the possibility of rescission
would be worse than sitting
still.
But in a Congress that has
little left of substance it is
willing to tackle in a midterm year, this is a fight
worth having. Adding a
substantial spending victory
to tax reform, deregulation
and a growing economy
could make the difference in
November.
Write to kim@wsj.com.
To Appreciate Freedom, Remember Slavery
HOUSES OF Re-enacting Why commemorate a repetitive compelled to commemorate the death camps, but the national
WORSHIP
slavery is not history of bondage?
unprecedented brutality of the resolve of the Jewish people in
By Ruth Wisse e v e r yo n e ’s
idea of a
good time,
but this is how Jews celebrate
Passover. Eating matzo—the
bread of affliction—and horseradish, Jews gather at the ceremonial Seder to recall their enslavement under Pharaoh in
ancient Egypt. Every family and
household recreates the text of
the Haggada, the narration, in
its own way, to ensure that
each participant experiences
the national ordeal.
It might seem strange that
people who prepare challah for
the Sabbath and welcome the
New Year with apples and
honey choose to mark the low
point of their history. Slavery
is emotionally humiliating,
physically harmful and psychologically degrading. It includes having sons killed at
birth and daughters at the
mercy of rapists, eating only
bitterness and providing sweetness for slaveholders.
And many families need no
reminder national enslavement
recurs for the Jewish people.
Benjamin Ferencz, who helped
prosecute the major Nazi war
criminals at Nuremberg, named
his 1979 book about Jewish
forced labor “Less Than Slaves.”
Whereas slaves are generally
well-maintained to ensure they
remain productive, concentration-camp inmates were worked
to death as another means of
annihilation. The Haggada is
mild compared with the Jewish experience under Hitler.
The answer lies in the prescribed rhythm of the Seder,
which passes from slavery
through stages of gratitude to
the Almighty to songs of liberation. Jews tell the hard truth
about their past because they
might otherwise take freedom
for granted. Like athletes who
know they must train for the
marathon, Jews rehearse the
Exodus to practice overcoming
slavery.
There is no ambiguity in
Passover about the object of
freedom. After the carefully
prescribed order of meal and
celebration, the Seder concludes with prayer asking the
Holy One “to lead the offshoots of Thy stock, redeemed, to Zion.” The Seder
ends with the vow, “Next year
in Jerusalem!”
That oath is why the scholar
Zelig Kalmanovich, who was incarcerated with tens of thousands of fellow Jews in the
Vilna Ghetto, could say of the
Nazi executioners: “I laugh at
you. I am not afraid of you. I
have a son in Eretz Isroel!”
Knowing that his son had
reached the Land of Israel made
him confident that Jewish civilization would rise from the
ashes. Kalmanovich was deported and worked to death in
a slave-labor camp but his son,
Shalom Lurie, on a kibbutz in
Israel, later edited and published his father’s diary.
The Passover story should
never be left half told. Understandably, American Jews felt
Holocaust and its victims. They
erected museums and memorials and insisted the subject be
taught to schoolchildren. But
the 1940s witnessed another
event equally unparalleled in
human history. Zionism, the
Jewish movement for self-liberation, took off in Europe at
the same time as German antiSemitism, too late for the rescue of European Jewry but in
time to shelter its survivors.
Echoes of Exodus
in the rise of modern
Israel from the
Holocaust’s ashes.
recovering its freedom dwarfs
the miracles that are recorded
in the biblical story. This is
not triumphalism but quite the
opposite—a refusal to stay
sunk in fear and trouble,
mourning and misery, servitude and dependency.
There is an aching part of
America that knows the history of slavery at first hand.
“When Israel was in Egypt’s
land, let my people go! Oppressed so hard they could not
stand, let my people go!” Singing this spiritual, African-Americans anticipated their own
genuine emancipation. Highlighting the enslavement at the
expense of the Exodus runs the
danger of encouraging a culture of victimhood. Jews owe it
to fellow Americans to move
from the suffering through to
the strength, the gratitude and
celebration.
Our family Seder follows
the traditional Haggada with
two addenda—a ceremony
commemorating the uprising
in the Warsaw Ghetto on the
first night of Passover 1943,
and the singing of the Jewish
national anthem “Hatikvah,”
along with “America the Beautiful.” Anthems require that
we stand upright. We are
thankful that for us the complete Passover story corresponds to reality.
This was not compensation
for the slaughters, God forbid,
but the people’s fulfillment of
an ancient pledge. The assurance that slavery could be
overcome inspired Jews to recover sovereignty in their
homeland, which had been under foreign domination for
two millennia.
The Holocaust records the
triumph of anti-Semitism and
the failure of Jewish political
strategy in Europe. The reclamation of Israel—which began
well before Hitler—records the
accomplishment of a people
against all odds. Telling about
the Holocaust as an end in itMs. Wisse, a senior fellow at
self hallows the slavery with- the Tikvah Fund, is author of
out the Exodus. American and “Jews and Power” (Schocken,
Soviet troops liberated the 2007).
What the Fed Could Learn From Bitcoin
By Max Raskin
S
hortly after Ronald Reagan was elected president,
former Federal Reserve
Chairman Arthur Burns paid a
visit to then-Fed Chairman Paul
Volcker. Burns brought a warning: The president-elect’s advisers, led by Milton Friedman,
wanted to replace the Fed
chairman with a computer. He
might have been biased, but Mr.
Volcker opposed the idea that a
complex monetary system
should be governed by simple,
mechanical rules, and the idea
never caught on.
Decades later the Fed remains unnecessarily unpredictable. The central bank’s
new leadership should consider ways to leverage recent
technological innovations into
a more predictable monetary
policy. This isn’t a particularly
radical idea: Economists like
Milton Friedman favored the
certitude that comes with preannounced rules. His “k-percent rule” called for the money
supply to increase at a fixed
rate each year, regardless of
politics.
Technological innovations,
including blockchains and smart
contracts, have made Friedman’s vision even more plausible. Bitcoin, the world’s most
successful digital currency, was
The cryptocurrency is
committed to passive
monetary policy.
issued on a decentralized
blockchain. Bitcoin is precommitted to a certain inflation
rate, and unless a significant
portion of the network agrees,
it won’t change. No more than
21 million bitcoins will be
minted, and the inflation rate
will halve approximately every
four years. This precommitment is effected through the
network’s rules, which have
prohibitively high costs to
change after the fact.
Countries interested in
adopting a passive monetary
policy could use bitcoin as a
model. Such a policy would
have some of the benefits of
passive investing. Index funds
save investors from the significant management fees active
funds charge. The Fed and other
central banks have their own
fees, known as budgets. More
significant is the macroeconomic cost of uncertainty. Businesses delay investment, and
long-term planning becomes
more difficult, with unknowns
from the government.
Defenders of the status quo
warn that it would be dangerous to commit the economy to
one path, given uncertainty
about the future. The solution:
introduce a measure that allows for discretion if certain
red lines are crossed. Quantitative easing, if policy makers
find it appropriate, can be
written in code ahead of time,
allowing for purchases of specific assets that fall below predetermined price levels.
Whatever the case may be
for passive monetary policy in
the U.S., it is much stronger
for states with a history of unstable monetary policy. Countries like Argentina and Zimbabwe should study tethering
their monetary policy to a
blockchain and using smart
contracts to precommit to
certain rules. Unlike economically more-influential nations,
the flexibility of a small nation’s countercyclical monetary policy should not be a
factor in making the decision
to go passive.
Moving away from central
banks is a nice analogue to the
recent trend of taking money
away from poor-performing
active managers and placing it
in index funds. No one can
deny that many active managers can’t justify their fees—
whether they’re bonuses or
budgets.
Mr. Raskin is an adjunct
professor of law at New York
University.
BOOKSHELF | BY Adam O’Neal
From Rap
To Riches
3 Kings
By Zack O’Malley Greenburg
(Little, Brown, 307 pages, $28)
D
onald Trump was once a prominent feature on the hiphop landscape, where his penchant for ostentatious
displays of wealth paired well with hip-hop’s embrace of
conspicuous consumption. But lately his politics have made him
toxic. In only a few years, he has evolved from hero to heel.
Who will replace him as hip-hop’s favorite billionaire
businessman? Expect an internal hire.
Earlier this month, Forbes updated its list of hip-hop’s
wealthiest artists. The three men at the top have something in
common: They earned substantial wealth and fame through
music but eventually transformed themselves into even
wealthier business executives. In “3 Kings: Diddy, Dr. Dre, Jay-Z,
and Hip-Hop’s Multibillion-Dollar Rise,” Zack O’Malley
Greenburg—who compiles the Forbes hip-hop wealth list—
provides a quick chronicle of how each man did it.
Hip-hop in the 1980s was a nascent but fast-growing music
genre. Def Jam Recordings, the label that signed such pioneers
as LL Cool J and the Beastie Boys, was started out of a New
York University dorm room in 1984. Between that year and
1987 only 10 hip-hop albums sold one million copies; from 1988
to 1993 about 10 albums achieved this feat every
year. As the fan base grew, artists quickly
discovered that they had a burgeoning
image to leverage into brand
endorsements. In 1986, the members of
Run-D.M.C. could be seen stomping their
Adidas shell-toe shoes to the tune of $1
million—“hip-hop’s first seven-figure
branding pact,” Mr. Greenburg notes—a
deal brokered by Def Jam’s co-founder
Russell Simmons.
This was the scene onto which the first
of Mr. Greenburg’s kings, Sean “Diddy”
Combs, arrived in the late 1980s, dropping
out of Howard University to work at Uptown
Records. There, Mr. Greenburg tells us, Mr. Combs
“applied his brand of urban panache to acts on Uptown’s
roster,” blending hip-hop and R&B and making sure that his
performers maintained enviable lifestyles. After being fired
from Uptown, Mr. Combs started his own label, Bad Boy
Records—featuring, most significantly, the Notorious B.I.G. Mr.
Combs reinvented himself as a rapper, selling millions of
records and again conveying, with flashy images of success and
riches, an aspirational message. He also invested in the Sean
John clothing label, Revolt TV and any other product that
reflected his way of life, to cash in on the brand and his
endorsement. “Whatever was in the realm of entertainment or
lifestyle, or curator of cool, that’s what I do,” Mr. Combs once
said. His earnings from an interest in Cîroc vodka topped $60
million in 2014, according to Mr. Greenburg.
Forbes estimates Mr. Combs’s net worth at $825 million, and
for years he sat atop the list of hip-hop’s richest artists. This
year he was overtaken by Shawn “Jay-Z” Carter. Mr. Carter took
a more circuitous route to the top, learning his earliest business
lessons selling crack cocaine in Brooklyn, N.Y. One of Mr.
Greenburg’s sources estimates that by the early 1990s Mr.
Carter was moving about a kilogram of cocaine a week, a
business so lucrative he almost gave up his music career.
Eventually, though, he committed himself to hip-hop full-time,
co-founding Roc-A-Fella Records in 1995 to release his first
album. From there he would co-found Rocawear clothing in
Hip-hop’s richest artist is almost a
billionaire, but he didn’t make his
money just by cutting hit records.
1999 and become president of Def Jam in 2004. Along the way,
according to Mr. Greenburg, Mr. Carter would persuade
multibillion-dollar companies “to cough up a nine-figure sum
for a generic product upon which he’d sprinkled his stardust.”
But he also developed a knack for monetizing his career in
innovative ways. Samsung paid the rapper $5 million for a
million copies of his 2013 album “Magna Carta Holy Grail,”
which the company’s Galaxy smartphone users could then
download early. Last year Mr. Carter signed a $200 million, 10year concert deal with the events promoter Live Nation. Today
Mr. Carter is close to becoming hip-hop’s first billionaire, with
an estimated net worth of $900 million.
Andre “Dr. Dre” Young is the last of Mr. Greenburg’s kings.
Now worth an estimated $770 million, he first gained fame in
the late 1980s as a member of the West Coast hip-hop group
N.W.A. But Mr. Young recognized that he needed to tone down
his rough public persona if he was to gain mainstream
acceptance. He later admitted that “making money is more
important to me than talking about killing police.” He took
himself out of the spotlight and spent years focused on being a
music producer and the founder of the Aftermath record label,
signing such major hip-hop names as 50 Cent, Eminem and
Kendrick Lamar. More so than in the case of Messrs. Carter and
Combs, Mr. Young’s sonic taste and obsession with perfection is
the central part of his appeal. It helped him build Beats, the
headphones and music-streaming brand that Apple bought in
2014 for $3 billion in a deal that also saw Mr. Young join the
tech company as an executive. Mr. Greenburg estimated in 2015
that the deal brought Mr. Young a $500 million payout.
Mr. Greenburg does an admirable job uncovering details
about each man’s finances. His interviews with the kings’
acquaintances and business partners are usually insightful and
often amusing. Some of his reporting on how the major deals
went down will be of interest to business-oriented readers,
particularly his dissection of Mr. Young’s former partnership—
and falling out—with audio-equipment executive Noel Lee. Yet
we never get a full sense of the three kings—their personal
lives, family relations, cultural views—apart from their deal
making and commercial success. Mr. Greenburg sometimes
substitutes such insight with awkward and broad descriptions:
“If anyone who knew the trio well had to cast them as Marvel
superheroes, or Disney princesses, or Teenage Mutant Ninja
Turtles, all three would inevitably end up in disparate roles.”
Even so, the book’s primary observation is well-taken: Hip-hop
is not becoming more corporate. If anything, corporations are
becoming more hip-hop.
Mr. O’Neal is an assistant editorial features editor at the
Journal.
Coming in BOOKS this weekend
Rodgers and Hammerstein’s wonderful partnership • The
perils of positive thinking • Faith, politics and Jimmy
Carter • An authoritative history of Judaism • London’s
Savoy Hotel • Sam Sacks on new fiction • & much more
.
THE WALL STREET JOURNAL.
A14 | Friday, March 30, 2018
OPINION
D
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Trump Targets Amazon
The Democrats, Catholics, God and Caesar
onald Trump slammed Amazon on ing the Obama years for targeting conservative
Twitter Thursday, and its stock price nonprofits with extra scrutiny.
went up. Maybe investors are figuring
Alternatively, Mr. Trump could try to gin up
out that deploying federal
antitrust regulators at the
The President’s tweets Federal Trade Commission
power against the online retailing behemoth isn’t as easy
and Justice Department. But
make any regulatory
as pressing “Tweet”—for
the federal government would
action seem political. struggle to prove consumer
which Americans should be
grateful no matter what they
harm, the most basic criterion
think of Amazon.
for an antitrust case. Amazon
On Wednesday the Axios website reported has disrupted the retailing business by deliverwhat was hardly a secret—that Mr. Trump ing online consumer goods conveniently and ofdoesn’t like Amazon and its CEO Jeff Bezos, ten at lower prices.
who also owns the relentlessly anti-Trump
One place Amazon likely does enjoy an unfair
Washington Post. Amazon shares fell about competitive advantage is due to federal inter4.4% on the day, amid the general investor angst vention. The Obama Justice Department
over political anger aimed at Facebook and the brought an antitrust case against Apple for trybig tech companies.
ing to compete with Amazon’s e-books domiThen on Thursday Mr. Trump, perhaps boil- nance. These columns called the case “quartering over after a calm week, tweeted: “I have baked,” but liberal judges approved.
stated my concerns with Amazon long before the
Amazon has been the main beneficiary, and
election. Unlike others, they pay little or no taxes today it accounts for around 75% of all e-book
to state & local governments, use our Postal Sys- sales. Mr. Trump’s appointees at the Justice Detem as their Delivery Boy (causing tremendous partment should review that case, though the
loss to the U.S.), and are putting many thousands President’s social-media outbursts will make
of retailers out of business!”
any such intervention now seem politically moAmazon wisely declined to respond, and the tivated. Mr. Trump’s tweets have already cast
President is wrong to target a private company. a political pall on Justice’s legally dubious antiThat’s what Democrats do—as Barack Obama trust case against the AT&T-Time Warner
did against Staples for executive compensation merger.
(2015), Anthem for raising insurance premiums
Mr. Trump’s other big gripe is that taxpayers
(2010), and the Koch brothers for opposing re- are on the losing end of Amazon’s deal with the
newable fuels (2015), among others. But Ama- U.S. Postal Service. But that story is also more
zon shares popped back 1.1% Thursday in a ris- complicated. The Post Office has often operated
ing market.
at a net loss, but package volumes grew in fiscal
The reality is that Mr. Trump and the execu- 2017 by more than 11%, making it a rare growth
tive branch can’t do much to hurt Amazon—at market. Many of the additional 589 million boxes
least not legally, or without an effort to build delivered last year came from Amazon.
a far better case than his tweets offer.
Though imperfect, the deal is mutually beneMr. Trump complains about Amazon’s state ficial. The Post Office arguably needs Amazon
and local tax payments, but Amazon has col- more than Amazon needs the Post Office. The
lected billions of dollars in sales tax in the Post Office could drop Amazon as a delivery
states that require it. It's true that cities and partner, but it would likely have to raise prices
states competing for Amazon’s second head- elsewhere or endure higher losses. Would Mr.
quarters have offered an embarrassment of tax- Trump take credit for that?
payer subsidies. But however regrettable, such
Mr. Trump can rail against anyone he wants,
corporate dowries aren’t the concern of the fed- but America is still a nation of laws, as Mr.
eral government.
Obama also discovered. This is a lesson Mr.
Mr. Trump could try to unleash the Internal Trump’s critics forgot as they cried wolf over
Revenue Service, though that would be a scan- a fascist takeover. The political reality is that
dal that could be an impeachable offense. The the more Mr. Trump publicly assails Amazon,
press and prosecutors would not give the the harder it will be to take regulatory action,
Trump IRS the pass they gave Lois Lerner dur- deserved or not.
C
Barclays Foils Bank Heist
ongratulations to Barclays PLC, which Barclays was defrauding itself.
was vindicated Thursday for its DecemThe feds also claimed that Citigroup was a
ber 2016 decision to fight the Obama Barclays victim, though Citi had previously paid
Administration’s attempt to
$7 billion as a punishment for
The British bank saves its sales of fraudulent mortstage one last bank robbery.
The British bank agreed to pay
gage securities. Citi: victim
$3 billion by fighting
$2 billion to settle the Justice
and villain at the same time.
a late Obama hit.
Department charges without
The Obama gamble was that
admitting guilt.
its charges would never be
The $2 billion is the
tested in court because the
amount Barclays had previously told Justice banks would settle.
was the most it would pay, and it is much less
And while Barclays did settle to get the disthan the $5 billion Justice demanded. It is also pute over with and save on legal costs, Justice
much less than the $7 billion that Deutsche acted Thursday as if the department has surBank and $5 billion that Credit Suisse paid in rendered. Justice unrolled the charges with
2016 when they declined to fight similar much fanfare in 2016, as was the Obama-era
charges. Barclays refused to roll over, and its habit against unpopular business targets. But
shareholders are better off for it.
on Thursday Justice slunk away with a twoBarclays knew it had a strong case because page press release that included: “These are alJustice’s original complaint was what we called legations only, which the Defendants dispute,
at the time “a 198-page flight from logic.” The and there has been no trial or adjudication or
feds accused Barclays of defrauding investors judicial finding of any issue of fact or law.”
by selling mortgage-backed securities in the
The Obama bank heists were politically moyears before the 2008 financial panic, but Bar- tivated, fact-free assaults, and Justice was right
clays was also an investor in most of those se- to settle before it suffered an embarrassing lecurities. The Justice theory apparently was that gal defeat.
D
A Republican Pulse in Connecticut
espite years of zombie sightings, the erty that have served Americans of all faiths so
Connecticut Republican Party is not well for so long.” Mr. McDonald was forced to
dead. On Tuesday 18 GOP state sena- drop the idea.
tors voted as a bloc to defeat
Ahead of Tuesday’s vote,
Democratic Gov. Dannel Mal- A judicial victory shows Mr. Malloy and his Demoloy’s nominee for Chief Justice
cratic allies railed against
a political opening in
of the state Supreme Court. A
what they called the “politicithe ill-governed state. zation” of the judicial nomilone Democratic defector provided the margin of victory in
nation process. But Mr.
the Legislature’s evenly diMcDonald is nothing if not
vided upper chamber.
political. He was the city of Stamford’s director
Democrats in the deep-blue Nutmeg State of legal affairs and corporation counsel while
own the governorship, the lieutenant governor- Mr. Malloy was mayor. Before being nominated
ship, the state House of Representatives and the to the court, Mr. McDonald was the Governor’s
congressional delegation (5-0). The national chief counsel.
Republican Party has all but written off the
Mr. Malloy politicized the debate himself by
“land of steady habits” and bad economic pol- accusing opponents of fighting Mr. McDonald
icy. Yet in 2016 the GOP managed to pick up because he is gay. Some Republicans, he said,
three seats in the state Senate, turning a 21-15 “don’t believe that a gay person should be on
Democratic advantage into an 18-18 tie. This the Supreme Court.”
week’s court victory is a sign the party wants
That line might have worked had 11 of the
to make the state more competitive again.
Senate’s then 14 Republicans not voted to eleMr. Malloy is the most unpopular Governor vate Mr. McDonald to the state’s high court in
in the country, so opposing him doesn’t take 2013, despite his lack of judicial experience.
much political courage. But his choice of nomi- Connecticut is among the more culturally tolernee, current Associate Supreme Court Justice ant corners of America, and Mr. McDonald’s hoAndrew McDonald, motivated GOP opposition mosexuality played no role in the nomination
and helped Senate Republican leader Len Fa- until the Governor raised it.
sano keep his caucus in line.
The question is whether this show of GOP reMr. McDonald is a political lightning rod. In solve is a harbinger of a 2018 electoral come2009 as a state senator, he made national head- back. Democrats under Mr. Malloy have made
lines and triggered huge protests when he in- Connecticut a wholly owned subsidiary of govtroduced a bill to regulate the financial opera- ernment unions. Rising taxes, the worst econtions of Connecticut’s Roman Catholic parishes omy in the Northeast and unsustainable pension
—and only its Catholic parishes. The United obligations are driving people and businesses
States Conference of Catholic Bishops called the out of the state. A united GOP can make an exbill an attack “not only on the Catholic Church cellent case to retake the governorship this year
in Connecticut, but on the Church nationwide, and save the state from the decline brought by
on the foundational principles of religious lib- progressive union governance.
Regarding “The Democrats Abandon Catholics” by Cardinal Timothy
Dolan (Houses of Worship, March 23):
Among many other issues, the U.S.
Conference of Catholic Bishops has
stressed the need for gun control, accepting immigrants and refugees, extending DACA and CHIP, the right to
health care for all, progressive taxation, raising the minimum wage, supporting Black Lives Matter and increasing welfare given to low-income
families. These are all positions the
bishops’ conference shares with the
Democratic Party.
I disagree with the cardinal’s point
on education. Universal primary education wasn’t something the U.S. provided while Archbishop John Hughes
was alive, so his efforts to educate
those outside the system were admirable. Today, any child can go to public school at no additional cost and
attend Confraternity of Christian
Doctrine (CCD) programs at their
church to get a religious education.
Being able to afford sending a child
to elementary and high school is no
longer an issue in America and
should not be treated as one. However, removing funding from public
schools could make it harder for already underfunded public schools to
continue to offer a holistic education
to all children.
It is very clear that the Democratic
Party is by no means abandoning the
Roman Catholic Church when 15 of
the 24 Catholic senators are Democrats, 75 of the 140 Catholic representatives are Democrats, our last vice
president, as well as the 2016 Democratic nominee for vice president, not
to mention the chairman of the Democratic Party are all Catholic Democrats. To say Catholics are abandoning
the party is only hurting the work on
causes they share with the Democrats.
EDDIE ZAKRESKI
Duquesne University
Pittsburgh
I don’t know where the good cardinal has been for the past 20 years,
but the Democrats abandoned Catholics, and dare I say Christians in general, a long time ago.
THOMAS MCNAUGHTON
Pearl River, N.Y.
Numerous Democratic politicians
have consistently promoted abortion
while loudly proclaiming their Catholic identity: Mario Cuomo, Ted Kennedy, Nancy Pelosi, Tim Kaine, John
Kerry, Joe Biden, to name a few. Yet
they face no consequences from the
Catholic Church. Rarely does a bishop
publicly reprove them. They continue
to receive communion and to trumpet
their Catholic bona fides. When they
die, a splendid Catholic funeral follows (see Ted Kennedy, Mario
Cuomo).
The church’s indulgence of proabortion Catholic politicians has
gone on for decades. With all respect
to Cardinal Dolan, it should come as
no surprise that we are where we are
today.
FRANCES BROWN
Newburgh, Ind.
While Cardinal Dolan states: “I’m a
pastor, not a politician,” yet writes
that “Democrats Abandon Politics”
and “If you value religious education
or life’s sanctity, you’re not welcome
in the party,” in my view he is dipping his toe into politics. Cardinal
Dolan has crossed over into becoming
a politician.
MIKE HAMMER
Westfield, N.J.
My parents, who were strong Democrats, would be sadly disappointed
at today’s Democratic Party as Cardinal Dolan says his grandmother
would be. It sure isn’t the party of
JFK any more.
DON GLENN
Elizabeth, Colo.
Golden State’s Carcinogen Policy Is Rational
Regarding your editorial “A Cancer
Scare Defeat in California” (March 15):
The statement that California’s Office
of Environmental Health Hazard Assessment found the herbicide glyphosate is “unlikely to pose a cancer
hazard to humans” is misleading, as it
quotes an 11-year-old drinking-water
assessment that has limited relevance
for glyphosate exposures to consumers
and workers.
In 2017 when glyphosate was added
to California’s Proposition 65 list, our
office estimated glyphosate’s potency
for causing cancer in humans. We used
studies cited in the 2015 glyphosate
monograph by the International
Agency for Research on Cancer, which,
despite the unfair criticisms in your
editorial, is a respected authority that
the federal government and 18 states
have relied on for decades to identify
cancer hazards. Our assessment should
be finalized in the next few weeks.
Our assessment identifies a level of
glyphosate exposure that doesn’t
cause a significant cancer risk and
wouldn’t require warnings. This is intended to help businesses determine
for themselves whether they need to
provide warnings to Californians for
glyphosate exposures. Your statement
that California is requiring “new cancer warnings on food products” is premature and overlooks the likelihood
that many of these products won’t require warnings. This is the case with
many other chemicals subject to Proposition 65.
Since its approval by California voters in 1986, Proposition 65 has
prompted the reduction or elimination
of toxic chemicals in a variety of products including prenatal and children’s
vitamins, imported candies, cola
drinks, cookies, jewelry, snack foods,
car seats and bottled water, to name
just a few.
ALLAN HIRSCH
Office of Environmental
Health Hazard Assessment
Sacramento, Calif.
Medicare Advantage Not a Good Bet for Most
As a registered nurse and office
manager of a small subspecialty (pulmonary) physician practice, I am
amazed at “Republicans’ Quiet Health
Victory” by Bobby Jindal (op-ed,
March 22) endorsing how wonderful
Medicare Advantage plans are. He
mentions the Mayo Clinic, but fails to
mention it will not see patients with
advantage plans.
I have traditional Medicare and a
supplemental policy. If I have a rare
brain tumor, I can more easily go to
the best neurosurgeon in the country.
In many “advantage” plans the copay
to see a specialist is often double the
amount to see a primary-care provider. I guess the plans are so “consumer oriented” they want enrollees
to see the physician with three to six
years less training.
It’s clear that the patient is vastly
ahead with traditional Medicare.
COLLEEN DAVIS STINAR, BSN, MS
Silver City, N.M.
Mr. Jindal presents Medicare Advantage as beneficial for patients just
because it is “private.” It introduces a
new layer of bureaucracy with highly
paid executives at the expense of the
taxpayer and sick people.
WALTER M. GERHOLD, M.D.
Osprey, Fla.
the healthiest, less risky seniors.
Medicare Advantage is inconvenient for those with chronic illnesses
(the more costly patients). Those enrolled in Medicare Advantage consume 66% of the average Medicare
dollars of traditional Medicare patients. Conversely, patients leaving
Medicare Advantage go on to spend
180% of the cost of patients enrolled
in traditional Medicare during the
first year after leaving. This indicates
that when patients get sick they
leave Medicare Advantage, possibly
due to higher copays and out-ofpocket costs, and perhaps less access
to care as well.
If Medicare Advantage becomes
the “default plan” and insurers lose
the ability to cherry pick the healthiest, most profitable seniors, insurance companies will leave in droves.
Doctors who don’t want to be paid
less than they are under traditional
Medicare will likely exit as well.
PAUL J. SCHILLING, M.D., FACRO
St. Augustine, Fla.
Pepper ...
And Salt
THE WALL STREET JOURNAL
Advantage plan companies receive
12% to 19% more money than those in
traditional Medicare. Seniors enrolled
in Medicare Advantage are faced with
higher deductibles and copays. More
than 50% of Medicare Advantage
plans pay physicians below prevailing
Medicare rates. Insurers cherry pick
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“Then it’s agreed – we let the
Russians handle our ad campaign.”
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | A15
OPINION
By Lenore Skenazy
I
f you send your kid out to play
in the park for an hour, or buy
a carton of milk, or even walk
to school, guess what? If you’re
in Utah, you won’t get arrested
for negligence. Woo hoo!
You don’t have to worry about a
trial, fines, mandatory parenting
classes, jail time or even losing custody, all thanks to a new law passed
unanimously by the Utah Legislature
and signed this month by Gov. Gary
Herbert. It goes into effect in May.
It’s called the Free-Range Parents
Law, named after the movement I
started, Free-Range Kids.
A new Utah law means
they no longer need to fear
the cops if they let kids
walk to school alone.
I’m the New York mom who let
her 9-year-old ride the subway alone
and wrote a column about it for the
late, great New York Sun. That was
10 years ago April 1 (and no, it
wasn’t a joke). Two days later I
found myself on NBC’s “Today”
show, MSNBC, Fox News Channel
and National Public Radio. The hosts
all asked the same question: “But Lenore, how would you have felt if he
never came home?”
Well, I did have a spare son at
home. But seriously, that very
question was the reason parents
were going crazy with worry. Paranoia about abduction by strangers—
among the rarest of crimes—was
the whole reason kids were being
supervised every second. The No. 1
cause of death for children is car
accidents. Yet you don’t hear talkshow hosts saying: “Oh my God, you
drove your son to the dentist? How
would you have felt if you got Tboned by a truck?”
I started the Free-Range Kids blog
the weekend after the media
firestorm, to explain that I am all for
safety. I love helmets, car seats, seat
belts. If you’re having a baby, my
shower gift is a fire extinguisher. But
I let my son go out into the big wide
world without me because that’s
what kids, certainly 9-year-olds,
have been doing since the beginning
of time.
It’s good for them. When you’re
on your own, you develop curiosity,
bravery and self-reliance. I am almost positive that you, dear reader,
spent part of your own childhood—
the best part, most likely—running
around your neighborhood, hanging
out with friends, playing games, riding your bike, and staying out till the
streetlights came on. If that was in
the ’60s, ’70s, ’80s, or ’90s, it was
actually less safe then than it is now.
The crime rate today is back to what
it was before color TV. And it’s down
not because we’re helicoptering kids.
The crime rate against adults is
down too, and we don’t “helicopter”
them—at least once they’ve finished
college.
CHAD CROWE
Parents, You Can Stop Helicoptering
If it wasn’t negligent for our parents to let us play outside when the
crime rate was higher, it certainly
shouldn’t be considered negligent
now, should it? Yet somehow it is.
Over the years I have received
many emails from parents, usually
moms, usually time-stamped around
3 a.m., that go something like this:
“Dear Lenore, I am shaking. Today
I let my child [go to the park / walk
to the pizza parlor / wait in the car
for three minutes], and someone
called 911. Now Child Protective Services is coming to investigate me. I
love my children more than anything. They are my whole life. Are
they going to be taken away?”
Kari Anne Roy of Austin, Texas,
let her 6-year-old son play about 150
feet from her house. A lady marched
him home, rang the bell, and yelled
at Ms. Roy for not supervising him.
The stranger also called the authorities. A week later, Child Protective
Services arrived to interview each of
Ms. Roy’s kids separately. Her 8year-old daughter was asked if she’d
seen movies with people’s private
parts—something she’d never heard
of. “Thank you, Child Protective Services,” said Ms. Roy.
In Evanston, Ill., Julie Koehler
was driving her three daughters, 8, 5
and 4, to a bouncy house when she
stopped at Starbucks. She let the
girls wait in the van for three minutes and returned to find a cop
threatening to have her kids taken
away. A Child Protective Services
worker arrived the next day and demanded the girls be examined by a
doctor for signs of abuse.
Wallingford, Conn., mom Maria
Hasankolli overslept one morning and
her son missed the bus, so he decided
to walk the two miles to school. When
police were alerted to an 8-year-old
outside on his own, they raced over,
drove him the rest of the way, then
went to his home and arrested Ms.
Hasankolli—in handcuffs.
The Utah law redefines neglect to
exclude letting kids walk to school,
play outside, remain briefly in a vehicle under certain conditions, stay
at home as a latchkey kid, or engage
in any “similar independent activity.” It adds that children should be
of “sufficient age and maturity to
avoid harm or unreasonable risk of
harm,” which could leave the door
open for overzealous officials. But
clearly the law leans in the direction
of giving Free-Range parents the
benefit of the doubt.
In America, we keep talking about
how we need to raise a generation of
kids who are smart, resilient problem-solvers ready to take on the chaotic, robotic economy ahead. We can’t
do it by standing always by their side,
solving all their problems.
It is not negligent to believe our
kids are ready for the childhood independence that made us who we
are. It is negligent to deprive them
of it.
Ms. Skenazy is president and cofounder of the new nonprofit Let
Grow.
Britain’s Monetary ‘Stimulus’ Has Fed the Pension Crisis
The Bank of England wants you to
know that the monetary pyrotechnics
it set off after the
2008 global finanPOLITICAL cial panic have
ECONOMICS worked splendidly
to rescue the econBy Joseph C.
omy. The big BritSternberg
ish business stories
from the past decade, including one that reached its
climax this week, say otherwise.
On Thursday the shareholders of
GKN, a centuries-old engineering
firm, voted in favor of an £8.1 billion
hostile takeover bid from Melrose,
another industrial powerhouse. GKN
holds a cherished place in Britain’s
history as manufacturer of the Spitfire planes that saved the country
from the Blitz.
The fight between Melrose and
management centered mainly on
dueling plans to restructure the
company, but one would be remiss
not to mention the role GKN’s pension mess has played in the saga.
The company’s defined-benefit program had fallen into a deficit estimated, as of this winter, anywhere
between £400 million and more
than £1 billion.
The company has tried to dig itself
out. For years it has enrolled new
hires in a defined-contribution program, and last year it froze the accrual of further benefits within the
old pensions. Management last summer announced that GKN would pour
another £250 million into the definedbenefit plan to narrow its deficit. But
none of that is enough when it’s not
possible to ditch the legacy plan immediately—and when the central
bank is working against you.
Interest rates are at the heart of
all this. In theory, ultralow rates and
central-bank bond purchases under
quantitative easing have helped the
asset side of pension funds’ balance
sheets by inflating the stock and
bond markets. Until the bubble
bursts, anyway.
Yet the one unambiguous consequence of low rates for pension
funds is negative: a widening gap between assets and liabilities as the expected rate of return plummets.
Monetary policy since 2007 has
helped open a total pension funding
deficit of some £300 billion in Britain’s defined-benefit pension plans,
or 15% of annual gross domestic
product.
Which brings us back to GKN. A
striking feature of the debate over
the takeover bid is how concerns
over its defined-benefit pension plan
shaped the broader argument over
the company’s future.
Ultralow interest rates
widen the gap between
assets and liabilities as
expected returns plummet.
Melrose promised to pump up to
£1 billion into the pension fund. It
also warned that management’s
competing plan to split off various
units of GKN would leave some of
the resulting pension funds dangerously short. Management replied
with its own dire warning that Melrose’s debt would cripple the pension plan.
The pension, the pension, the pension. Fretfulness over its future long
has hemmed in strategic planning. “A
GKN financial presentation would not
be complete without a bit on pensions,” the company’s then finance
director, Adam Walker, quipped on a
conference call with investors last
July after years of promises to reduce its financial drag.
A working paper last month from
the Bank of England lays out the extent to which such pension woes at a
range of British companies are starting to stifle the economy. The more
strenuously companies must work to
refill their pension coffers, the more
both dividends and business investment suffer. The paper suggests dividend payouts are 3% lower than they
otherwise would be, and business investment is 2.5% lower, due to efforts companies have had to undertake to stabilize pension funds since
2007.
The oddity is that a separate
Bank of England study this week
claimed households are better off
thanks to the central bank’s monetary policies. That research’s headline conclusion was that low rates
and QE didn’t exacerbate inequality,
but the core of the case is that the
bank’s heroic exertions helped drive
post-2007 wage growth, anemic as
it has been.
The study argues this in part by
presenting dire guesses about how
poorly the economy might have performed without monetary intervention. That’s in line with the theory in
the pension paper that the economy
overall is only slightly worse off due
to pension shortfalls because monetary policy has been such effective
stimulus otherwise.
Do these people not read their own
working papers? Bank officials have
professed for years to be puzzled that
investment has stagnated, and productivity growth along with it, despite
healthy economic growth. Last
month’s pension research is part of
the answer, describing one vector
through which poorly conceived monetary policy can trigger a round of
malinvestment. The bank will find
plenty of other vectors if it looks.
Business investment and household welfare are not distinct phenomena. Nowhere do their strands entwine quite so closely as in a pension
fund, whose deficit can silently stunt
investment and wage growth before,
in the worst case, collapsing entirely
and depriving desperate retirees of
their income. As GKN’s investors are
but the latest to discover.
The U.S. Olympic Monopoly Needs Accountability
By Steven Sexton
S
hortly after criticizing leaders
of the U.S. Olympic Committee
in a local television interview
earlier this month, rapid-fire pistol
shooter Keith Sanderson was booted
from the men’s national team and
kicked out of the U.S. Olympic Training Center in Colorado Springs, Colo.
USA Shooting, the organization approved by USOC to manage the sport,
accused the three-time Olympian of
multiple violations of its code of conduct. Mr. Sanderson, who was elected
by fellow elite athletes to represent
them on the Athletes’ Advisory Council, claims he’s being punished for his
outspokenness.
I believe him, because something
similar happened to me. I was removed in 2016 from my role as an
elected athlete representative at USA
Triathlon after I lobbied congressional
staff for reforms to the USOC. If this
is how whistle-blowers are treated, is
it any wonder Larry Nassar’s reign of
sexual abuse at USA Gymnastics
lasted as long as it did?
A growing chorus of past Olympians is calling for reform. Only Congress can fix the problem.
The USOC and the 47 national
sport governing bodies it oversees
operate as government-granted monopolies by virtue of the Amateur
Sports Act of 1978. Were Mr. Sanderson in a different line of work, he
could take his talents to another employer. But the only path to an Olympic berth for American citizens—
short of defecting to another country
—runs through the USOC. The USOC
is a monopsonist employer of Olympic athletes. For most, it is the only
buyer of their talents.
The USOC’s indifference toward
athletes extends beyond gymnastics,
shooting, and triathlon. The 16-member board and the boards of its sport
governing bodies routinely award
high six-figure salaries to administrators but consign most athletes to
meager stipends as they train for
Olympic competition. For example,
only 10% of USA Triathlon’s budget
is used to develop athletes in the
Olympic pipeline. As much as three
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times more is spent to subsidize insurance for triathlon race organizers
across the country.
The current system is responsible
not only for the tragic sex abuse
scandals of USA Swimming and USA
Gymnastics but also for diminished
performance on the field of play.
Team USA failed to meet expectations in Pyongchang last month. At
the Sochi games in 2014, subpar performance in speed-skating finally
compelled the USOC to acknowledge
athletes’ claims of emotional and
physical abuse by coaches and the
federation’s one-time president.
When governments grant exclusive licenses to operate—as they do
for electric utilities, for instance—
there is no threat of competition to
discipline monopolies. In such circumstances oversight is paramount
to ensure the public interest. Consequently, electric utilities’ actions
are heavily scrutinized and regulated by public utility commissions
employing full-time staffs. These
commissions typically fund ratepayer advocates who are charged
expressly with representing customers’ interests.
No such commission oversees the
USOC to guarantee athletes’ safety
and rights, or even to maximize
Team USA’s medal haul in each
Olympics. The Senate Committee on
Commerce, Science, and Transportation is charged with supervising the
USOC but hasn’t held hearings on
the subject since 2003.
There can be only one
Team USA, so Congress
must provide oversight
and force changes.
The current rules governing Olympic sports in the U.S. are sufficient
only if the USOC and sport administrators can be trusted not to put their
own power, wealth and prestige above
the interests of Team USA athletes.
They can’t. Too many suffer from
“five ring fever”—the condition that
Notable & Quotable: Census
Seth Lipsky writing in the New
York Post, March 29:
A letter from New York’s Attorney General Eric Schneiderman, and
officers of 19 states . . . was dispatched last month to Commerce
Secretary Wilbur Ross, who oversees the Census. . . .
It alleges that adding a citizenship question “would significantly
depress participation,” slighting
states and cities “with large immigrant communities.” . . .
This would follow from the
prospect that a depressed Census
could “threaten our states’ fair
representation in Congress” and
“dilute our states’ role in the Electoral College.”
If that were true, though, one
would think that New York’s representation in Congress would have
improved when the federal Census
takers stopped asking about citizenship—in 1950, the last year the citizenship question was in the constitutionally mandated 10-year Census.
At the time, the New York delegation in the House had 45 members. Today, it has 27. That means
the state’s representation in the
Electoral College has also collapsed
to little more than half of what it
was when the Census was asking
about citizenship.
It’s not my intent here to suggest
that dropping the citizenship question caused the collapse in the
state’s representation in Congress
and the Electoral College. Just that
it didn’t help much, if any.
infects sports leaders carried away by
illusions of their own importance.
The Athletes’ Advisory Council to
which Mr. Sanderson was elected is
comprised of athlete volunteers from
all Olympic sports. Their job is to ensure athletes are safe and equipped
to compete at the highest level. But
its members, many of them in active
training, often lack the time, funds,
and expertise to grapple effectively
with more powerful interests.
Athletes are also supposed to be
protected by an ombudsman, but the
office is accountable to and funded
by the USOC. So when Mr. Sanderson
appeals his removal, the case will be
heard by a committee selected by his
accusers within USA Shooting. With
the paltry stipend he earns as an
Olympian, he can only hope to have
a pro bono attorney or a handful of
law students in his corner. His accusers will use the organization’s relatively vast funds to fight him—funds
that could otherwise be used to realize more Olympic dreams.
Americans surely don’t want competing U.S. Olympic teams, and the
International Olympic Committee
would never allow a competitor to
the USOC, so the solution is for Congress to exercise its oversight role
and make institutional changes. The
athlete ombudsman should be made
accountable only to the athlete council, not the USOC. The USOC should
be compelled to allocate at least a
small fraction of its $140 million
budget to an athlete legal fund managed by the ombudsman. And athletes should be allowed greater and
more direct representation on the
USOC board of directors.
Awakened to problems at the
USOC by the abuse of gymnasts,
Congress will be complicit in the
next scandal if it doesn’t intervene
to fix Olympic sport.
Mr. Sexton, a former member of
the national triathlon team and athlete director of USA Triathlon, is an
assistant professor of public policy
and economics at Duke University.
.
A16 | Friday, March 30, 2018
THE WALL STREET JOURNAL.
WORLD NEWS
Saudi Prince Urges More Pressure on Iran
An opponent of the
West’s nuclear deal,
leader says alternative
is military conflict
Saudi Arabia’s crown prince
called on the international
community to squeeze Iran economically and politically to
avoid a direct military confrontation in the region.
Sanctions “will create more
pressure on the regime,”
Crown Prince Mohammed bin
Salman told The Wall Street
Journal this week.
Saudi Arabia has been a
critic of the deal the Obama
administration and other nations made in 2015 to lift some
crippling economic sanctions
on Iran in exchange for limits
on its nuclear program.
Under Prince Mohammed,
Saudi Arabia has severed diplomatic ties with Iran and
pressed countries in the Middle East and Africa to curtail
their relationships with Tehran, accusing it of meddling in
Arab affairs.
“We have to succeed so as
to avoid military conflict,”
said Prince Mohammed, who
is Saudi Arabia’s day-to-day
ruler. “If we don’t succeed in
what we are trying to do, we
will likely have war with Iran
in 10-15 years.”
Iran has emerged as a more
potent force in the Middle
East since the nuclear deal
and the dismantling of Islamic
CLIFF OWEN/ASSOCIATED PRESS
BY MARGHERITA STANCATI
Crown Prince Mohammed, who is on an extended tour of the U.S., met with President Trump and top officials in Washington last week.
State, building its influence in
Syria and Iraq and allegedly
supplying Yemeni rebels with
weaponry used against Saudi
Arabia in a three-year war.
Iran denies giving arms to
Yemeni rebels and says Saudi
Arabia is the one playing a destabilizing role in the region.
The 32-year-old prince’s father, King Salman, appointed
him as heir to the throne in
June last year, consolidating
his position as de facto ruler.
President Donald Trump,
who met Prince Mohammed in
Washington last week, has
threatened to scrap the nuclear
deal and nominated critics of
the pact to top posts recently,
including Mike Pompeo as secretary of state and John Bolton
as national security adviser.
European allies have pushed to
keep the deal in place.
Riyadh has applied eco-
nomic pressure in its pursuit
of political goals before, with
mixed results. It temporarily
blocked the flow of basic goods
to Yemen, but that deepened a
humanitarian crisis there.
Along with its three closest
Arab allies, Saudi Arabia severed ties and imposed an economic boycott on Qatar. But
Qatar rejected calls from the
Saudi-led block to change its
foreign policy and take steps
such as ending its support for
the Muslim Brotherhood, an
influential political Islam
movement in the Middle East.
Members of the group,
whose leader was ousted from
power in Egypt in a 2013 military coup, say they oppose violence and they want to rule
democratically. But countries
like Saudi Arabia consider the
group a terrorist organization.
“The Muslim Brotherhood
How Middle East’s Conflicts Shut Down Its Skies
Roundabout Way
Recent flights that have taken indirect routes because of geopolitical issues in the Mideast:
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
Qatar Airways | Doha to Khartoum
Until last year, the flight was a direct
route across Saudi Arabia. It now
takes 50% longer as the Saudis,
U.A.E., Bahrain and Egypt have
closed their airspace to the airline.
El Al | Tel Aviv to Mumbai
Israeli airlines can’t fly over
most Arab and Muslim
countries.
Beirut SYRIA
Tel Aviv IRAQ
BAHRAIN
EGYPT
DUBAI—If you want to see
what a tangle of geopolitical
conflicts the Middle East has
become, just look at its convoluted air routes.
The Qatar Airways flight
from Doha to Khartoum, Sudan, travels in a semicircle
and takes 5½ hours. A year
ago it took
two hours less
and flew
across Saudi
Arabia—but
that was before the Saudis
cut relations with Qatar.
If you’re flying to Mumbai
from Tel Aviv on Israeli carrier El Al, it will take you
eight hours as the plane doglegs past Saudi Arabia and Yemen. A direct path would take
around five hours. That detour is the result of the longest and most intractable
Mideast conflict—between Israel and the Palestinians.
Airspace over many Arab
and Muslim nations remains
closed to El Al; at the same
time, the region’s giant carriers such as Emirates Airline,
Etihad Airways and Qatar
Airways can’t fly over Israel
Emirates | Dubai to Beirut
Saudia | Jeddah to Beirut
Israeli airspace is closed to the
region’s major airlines. As the Syrian
war continues, most airlines don’t fly
over the country for safety reasons.
SAUDI
ARABIA Doha
SYR.
ISRAEL
U.A.E.
Dubai
Khartoum
IRAN
SAUDI
ARABIA
AFG.
OMAN
PAK.
Mumbai
YEMEN
Jeddah
SOMALIA
THE WALL STREET JOURNAL.
Source: FlightAware (flight paths)
as they head west to Europe
and beyond.
As the seven-year war in
Syria drags on, its airspace
remains out of bounds for
most international airlines,
with the notable exception of
Lebanon’s plucky national carrier, Middle East Airlines.
Add to this war-related disruptions of flights over Iraq
and Yemen and the latest dispute, between Qatar and
Saudi-led Gulf states, in which
Qatar Airways was barred
from airspace over United
Arab Emirates, Bahrain and
Egypt as well as Saudi Arabia.
“Few regions of the world
are as fractious and riven by
airspace wars as the Middle
East,” said Oliver Lamb, managing director of Ailevon Pacific Aviation Consulting.
Airspace closures exact significant costs on the region’s
economies (and airlines) as
travel takes longer and becomes more expensive due to
higher fuel costs.
For example, the popular
Emirates flights from Dubai to
Beirut usually take a J-shaped
path as they head west to
Egypt, veer sharply right over
the Sinai Peninsula and then
right again once past Israel.
This means at least an hour
more than the direct route
Emirates used to fly over Syria
before the war there began.
T
he environment of
shrinking access to airspace explains why an
inaugural Air India flight from
New Delhi to Tel Aviv last
week was such a big deal. The
link transits Saudi Arabia and
Oman, making it, according to
Israel’s Prime Minister Benjamin Netanyahu, a huge
“breakthrough” with geopolitical implications.
It was the first time Saudi
Arabia allowed an Israelbound commercial flight
through its airspace, a testament to the tacit rapprochement between the two countries and to the growing
regional influence of India.
“This development has
much greater importance
than most people note,” said
Dore Gold, president of the
Jerusalem Center for Public
Affairs and until 2016 the director-general of Israel’s foreign ministry.
Other Asian air carriers are
interested in following suit
now that fuel-efficient flight
connections to Israel can be
established, he added. “Israel’s trade with the Far East
has expanded enormously,
and to sustain it you need
enough air routes.”
So far, this airspace detente only concerns third-
country airlines, with Israeli
and Saudi carriers barred
from each other’s air. Such
discrimination has led to protests from El Al, which fears
it won’t be able to compete if
its lucrative Asian routes are
challenged by carriers offering cheaper and, crucially,
much shorter flights.
Irrational routes aren’t
unique to the Middle East.
China is notorious for restrictions that close much of the
country to commercial air
traffic. And, until 2008, flights
between mainland China and
Taiwan (which Beijing considers a renegade province) had
to go through Hong Kong’s
airspace, nearly doubling
flight times from Shanghai.
Opening up airspace can
also be one of the easiest
steps countries can take as
they seek to end squabbles. It
is a kind of rapprochement
that—unlike, say, tourist visits
or trade—remains largely invisible, and doesn’t elicit as
many emotions, one of the
reasons the U.S. has been
pushing for an airspace detente as a confidence-building
measure between Israel and
Gulf monarchies such as Saudi
Arabia and the U.A.E.
There is a precedent: In
August 1994, months before
Israel and Jordan signed a
peace treaty, a Jordanian
Boeing 727 was allowed to fly
over Tel Aviv and Jerusalem
from London to Amman. The
pilot: Jordan’s King Hussein,
whose radio conversation
with Israeli Prime Minister
Yitzhak Rabin was broadcast
around the world.
BY JARED MALSIN
CAIRO—Egypt’s Abdel Fattah Al Sisi is set to be reelected as president, capping a
campaign in which his major
opponents were jailed or sidelined and some voters were enticed to the polls with offers of
cash and threats of fines.
Mr. Sisi won about 90% of the
vote, according to initial results
reported by the official MENA
news agency, winding down an
election in which he faced no
significant competition.
Mr. Sisi is on course to maintain his leadership for another
four years. His first term came
to be defined by a clampdown
on political opponents and an
effort to rescue the economy
from the turmoil that followed
a 2011 uprising that toppled former President Hosni Mubarak.
Although Mr. Sisi’s victory
had been expected, he had
urged voters to turn out in high
numbers, hoping to claim a
popular mandate for his rule,
which followed a military coup
in 2013. The opposition called
for a boycott of the election.
In the months leading to the
election, authorities detained
candidates who came forward
to challenge Mr. Sisi. Two, including former military chief of
staff Sami Anan, remain in
prison. Mr. Anan was charged
with incitement against the military after he announced a presidential campaign in January, a
charge his associates dismiss.
The results will be announced Monday, according to
the election commission. There
were no official turnout figures.
Mr. Sisi, who won the last
election in 2014 with nearly
97% of the vote, has faced criticism over the economy. He
floated the currency and cut
subsidies as a part of a $12 billion loan program signed with
the International Monetary
Fund in 2016. But he now faces
discontent over rising prices of
basic goods and unemployment.
Egyptian institutions used
carrots and sticks to encourage participation. Some gov-
ISLAM SAFWAT/NURPHOTO/ZUMA PRESS
Little Opposed, Sisi Nears Finish Line in Re-Election
Results of the vote are to be announced Monday. Above, a ballot count in Cairo on Wednesday.
ernment employees said they
were ordered to vote at work.
On Wednesday, the election
commission threatened to enforce an obscure law imposing
a fine of 500 Egyptian pounds
($28) for not participating.
Engineering student Ahmed
Hamza, 20, voted in Cairo “only
because of the fine,” but decided
to vote for Mr. Sisi because of
the government’s plans to
launch infrastructure projects.
Mr. Sisi “is the painful medi-
cine we need for all of our diseases—economic, social, and
cultural,” said Abdo Abbas, a
businessman who voted in
Cairo on Tuesday.
—Amira El Fekki in Cairo
contributed to this article
is an incubator for terrorists,”
Prince Mohammed said. “We
have to get rid of extremism.
Without extremism no one can
become a terrorist.”
Under Prince Mohammed,
who also serves as defense
minister, Saudi Arabia leads a
military coalition that has
been fighting a war in Yemen
for three years, since Iranaligned Houthi rebels ousted
from the capital the internationally recognized government of Yemeni President
Abed Rabbo Mansour Hadi.
Saudi Arabia’s war effort,
which is supported by the U.S.,
has drawn criticism because of
its devastating humanitarian
consequences. Some 10,000
people have died so far, according to the United Nations,
and the conflict has pushed
Yemen to the brink of famine.
Prince Mohammed said failure to intervene in Yemen
would have caused a bigger
crisis. “If we didn’t act in 2015
we would have had Yemen divided in half between the
Houthis and al Qaeda,” he said.
Over the weekend, rebels
fired a barrage of missiles into
Saudi Arabia, including three
aimed at Riyadh, resulting in
one death. It was the first
time missiles fired from Yemen caused casualties in the
Saudi capital. The prince dismissed the attacks. “They
want to do whatever they can
do before they collapse,” he
said of the Houthis.
Saudi stocks to join major
index next year ..................... B11
Antiquity
Trade Tied
To Terror
Snares Two
BY GEORGI KANTCHEV
Spanish police are holding
two men suspected of trading
in antiquities looted by groups
linked to Islamic State, the
first publicly announced detentions by Western authorities working to dismantle the
terrorist group’s trade in plundered art.
The objects, which included
ancient mosaics and sarcophagi,
were stolen from archaeological
sites in Libya by groups linked
to Islamic State, Spanish police
said late Wednesday. The two
suspects, who weren’t identified
by name, were being held while
a judge decides whether to try
them on charges of terrorism financing and other crimes.
This would be the first time
authorities anywhere have detained alleged traders of Islamic State-linked antiquities,
Spanish police and international experts said. In December, U.S. authorities identified numerous antiquities they
said were looted by Islamic
State and have filed a complaint to seize the items.
“If confirmed, [this] will be
a smoking gun that ‘blood antiquities’ are reaching the international art market, and
will hopefully serve as a wakeup call,” said Deborah Lehr,
chairwoman of the Antiquities
Coalition, a Washington, D.C.based nonprofit organization.
Western law-enforcement
officials and experts say antiquities have been looted from
the Middle East and North Africa on an industrial scale, often to finance terrorist organizations, particularly Islamic
State. Some of these objects
have already entered the international art market, but most
objects may not surface for
decades, according to these officials and experts.
Some of the artifacts originally came from the Libyan
coastal region of Cyrenaica, an
important Greco-Roman site
that was under Islamic State
control from 2011 to 2016, according to the police statement. The Libyan Embassy in
Madrid didn’t respond to a request for comment.
Spanish police said the
two suspects led an international network based in Barcelona, dedicated to the trading
of works taken from territories plundered by groups
linked to Islamic State. The
men, both 31-year-old Spanish
citizens, used intermediaries
to purchase the objects and
conceal their origin by shipping them through Asia and
the Middle East, police said.
.
PERSONAL TECHNOLOGY: FIND OUT WHAT FACEBOOK KNOWS ABOUT YOU B4
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Microsoft Looks Beyond Windows
Vanguard
Clients
Gripe at
Snafus
BY JAY GREENE
BY SARAH KROUSE
Its iconic business
loses organizational
clout as cloud
computing takes hold
harnessed, the software giant
will reorganize its business
around its growing Azure
cloud-computing operations
and its stalwart Office productivity business.
Executive Vice President
Terry Myerson, who ran the
Windows business, will leave
the company, according to an
internal email from Microsoft
Chief Executive Satya Nadella
on Thursday.
The move is designed to focus Microsoft on its biggest
areas of growth. In its latest
quarter Azure revenue jumped
98% while Office 365 grew
Microsoft Corp. is downgrading the role of Windows,
the storied franchise that put
the company atop the personal-computer market at a
time when cloud computing
didn’t exist.
Now, amid the massive shift
in the way computing power is
41%, though the company
doesn’t give totals for those
segments. In the same period,
the More Personal Computing
unit, which includes Windows,
gained 2% to $12.17 billion.
“Having a deep sense of
customers’ unmet and unarticulated needs must drive our
innovation,” Mr. Nadella said
in the email he sent to employees Thursday morning. “We
can’t let any organizational
boundaries get in the way of
innovation for our customers.
This is why a growth-mindset
culture matters.”
Microsoft declined to make
erating system.
That Mr. Nadella is willing
to shift the company’s focus
away from Windows illustrates
the irreversible migration
from personal computing to
mobile devices and the web. It
also shows how Mr. Nadella is
putting his own imprint on the
tech giant.
“He’s clearly not handcuffed
by history,” said Stifel Nicolaus
& Co. analyst Brad Reback.
Mr. Nadella is able to break
from the past because, during
his four years as chief executive, Microsoft has emerged as
Please see AZURE page B2
executives available for comment.
In a post on Microsoft’s
LinkedIn page, Mr. Myerson,
who has run the Windows
business since 2013, said the
day was an “emotional” one
for him but expressed his “ongoing enthusiasm for Microsoft.”
For most of its 43 years,
Microsoft and Windows have
been nearly synonymous. Under Mr. Nadella’s predecessor,
Steve Ballmer, products were
sometimes stalled, or even
killed, because they didn’t help
expand the market for the op-
Bangladesh Still Grapples With Safety Lapses
DHAKA, Bangladesh—Five
years after a factory collapse
killed 1,100 workers in Bangladesh’s worst industrial disaster, organizations representing
Western brands say that authorities in the country aren’t
ready to go it alone to ensure
safety standards are up to
scratch.
Shortly after the Rana Plaza
tragedy, North American and
European retailers established
two parallel organizations to
inspect Bangladeshi factories
and mandate safety repairs.
Both groups initially planned to
phase themselves out in 2018.
Instead, the Bangladesh Accord on Fire and Safety,
backed by European brands
such as Hennes & Mauritz AB
and Zara owner Inditex SA,
has announced plans to extend
its efforts for up to three more
years.
The Alliance for Bangladesh
Worker Safety, which includes
North American companies
such as Walmart Inc. and Gap
Inc., will wind down its operations this year. It plans to establish a smaller safety monitoring organization to ensure
the factories the Alliance’s
brands source from that are
already up to code continue to
maintain rigorous inspections.
“The national safety regulatory body that’s supposed to
be doing the work that we’ve
been doing over the last five
years is nowhere near prepared,” said Rob Wayss, executive director of the Accord.
Bangladesh’s government
tried to upgrade its monitor-
MEHEDI HASAN/NURPHOTO/ZUMA PRESS
BY JON EMONT
Five years after 1,100 workers died in a factory collapse, big retailers say that authorities have yet to resolve many safety concerns.
ing and inspection regime for
factories after the disaster, but
progress has been plodding,
according to data compiled by
the International Labor Organization from Bangladesh government sources.
Of 754 garment factories
that are part of the Bangla-
Tesla Issues Recall
For 123,000 Sedans
BY TIM HIGGINS
Tesla Inc. is voluntarily recalling about 123,000 Model S
sedans globally after discovering that corrosion of certain
bolts in cold-weather climates
could lead to a power-steering
failure.
The Silicon Valley auto
maker on Thursday said the
recall, believed to be the company’s largest ever, applies to
Model S sedans built before
April 2016.
Tesla had sold about
280,000 total vehicles, including the company’s other models, through the end of last
year.
“There have been no injuries or accidents due to this
component, despite accumu-
lating more than a billion
miles of driving,” Tesla said in
an email being sent to customers.
The recall to retrofit the
power-steering component
adds to the string of challenges Chief Executive Elon
Musk is dealing with as he
tries to boost production of
Tesla’s mass-market Model 3
sedan and conserve the company’s cash supply.
Moody’s Investors Service
this week downgraded Tesla’s
credit rating, concerned that
the company won’t meet its
first-quarter goal of making
2,500 Model 3s a week.
The milestone is important
because further production
problems could crimp Tesla’s
Please see TESLA page B4
INSIDE
SHELL DIPS
TOES INTO
POWER SECTOR
SAUDI STOCKS
JOIN EMERGING
INDEX
ELECTRICITY, B3
INVESTING, B11
deshi government’s safety program, just 109 have resolved
more than half of the safety
issues identified, which relate
to structural, fire, and electrical safety—a significantly
slower rate than factories covered by the Accord and Alliance. The Accord covers
for factories currently being
monitored by the Accord and
Alliance. He said he didn’t
agree with the Accord’s views
on the matter. “We believe
that DIFE is capable of conducting the inspections. A
good number of engineers
Please see SAFETY page B2
around 1,600 factories and the
Alliance, 666, although there
is significant overlap.
Md. Shamsuzzaman Bhuiyan, Inspector General for the
Department of Inspection for
Factories and Establishments,
said his unit has the resources
to take over the inspections
Louise Robbins bought
shares in an exchange-traded
fund last Friday afternoon as
markets fell, knowing that she
had enough money in her Vanguard Group settlement fund
to pay for the trade.
Tuesday morning, the 60year-old Boston book editor
received an erroneous email
saying her settlement account
didn’t have sufficient funds to
pay for the transaction. A Vanguard spokesman confirmed
that other retail clients received similar messages and
the problem would be resolved
without customers having to
take any action.
The recent settlement-fund
snafu is part of a larger perception problem facing the
$5.1 trillion money manager:
Customers say Vanguard’s size
and record inflows are increasingly putting strains on
an enterprise known for its
devoted customer following
and low costs.
Vanguard is one of the biggest beneficiaries of an investor shift over the past decade
to cheaper passively managed
investment products that track
the performance of indexes. It
pulled in a record $369.3 billion in new investor money in
2017. It has long had a nearly
pristine reputation among customers attracted to the firm’s
principles of low-cost, longterm investing.
Over the past year, some
customers have complained
via Twitter, investment discussion forums and interviews
with The Wall Street Journal
of technical problems, administrative foibles and service
across Vanguard’s brokerage
and retirement businesses.
Some of these complaints
were aired on bogleheads.org,
a popular online investing
website named after Vanguard
Please see FUNDS page B2
Notice to
Readers
U.S. financial markets are
closed for Good Friday.
STREETWISE | By James Mackintosh
Beware a Tectonic Shift in Tech Shares
Stock-market rotations
sometimes
work out well
for investors,
but the historical echoes in the recent
selloff of highflying technology stocks are worrisome.
It is too early to be sure
that the shift of the past few
days out of the most fashionable tech stocks will continue, but if it does the
wider market faces some big
challenges.
The five biggest components of the S&P 500 at the
end of February were all
tech stocks: Apple Inc., Microsoft Corp., Amazon.com
Inc., Facebook Inc. and Alphabet Inc. (formerly
Google). At their peak value
two weeks ago, those five
made up 15% of the S&P’s
market value, more than the
entire financial, health-care
or industrial sectors.
Because of their size,
drops in their shares have a
disproportionate effect on
the wider market. The problem shows up in the difference between the ordinary
S&P, in which each stock is
given a weight based on its
adjusted market value, with
some adjustments, and the
equal-weighted version. The
S&P is down 5.3% since Facebook began to fall two weeks
ago, while the equal-weight
S&P has lost 4.2%.
This leads directly to the
second problem: It is hard
Scaling Up
The technology sector's value has not been such a big
proportion of the S&P 500 since the dot-com bubble burst.
Tech stocks have fallen back, but
mostly have beaten the market.
S&P 500 sectors, market value as proportion of total
Stock and index performance
Telecoms
Materials
Utilities
Consumer
staples
Industrials
Consumer
discretionary
Health care
Energy
Financials
Real estate*
Information
technology
March ’18: 24.7%
100%
80
60
40
20
0
1995
2000
’05
’10
’15
Note: Real Estate split from Financials in 2016
Source: Thomson Reuters Datastream
for the rest of the market to
make up for the losses
among the fashionable
stocks. Many of the trendy
tech companies command
extremely high valuations, so
even if their underlying business were to be won back by
traditional companies, the
lower multiple of profits investors assign to old-line
stocks should mean a lower
overall valuation for the
market, and so a lower S&P.
That doesn’t make it impossible, as part of Wednesday’s market moves showed.
Reports that President Donald Trump wanted to hit Amazon pushed its shares down
200%
Netflix
Amazon.com
Apple
Facebook
Alphabet
(A shares)
S&P 500
150
100
50
0
–50
2016
’17
’18
THE WALL STREET JOURNAL.
4.4%, and that was great
news for its competitors.
(Amazon is defined as a retailer by index compilers.)
Most retail stocks rose. It
was a zero-sum move, so
while some investors lost
out, others gained.
This creates a third problem: Companies such as Walmart Inc. don’t set investor
pulses racing. The story of
companies like Amazon,
Google or Facebook—or
smaller companies such as
Tesla Inc. and Netflix Inc.—
setting out to disrupt businesses and conquer the
world with ambitious research spending is exciting
and sucks in investor dollars.
If that narrative disappears,
perhaps the money won’t go
into stocks at all.
Put another way, the market has been led up by these
tech stocks. If the narrative
is changing, what will take
their place? History is full of
examples of sectors and
story stocks coming in and
out of fashion, but the really
big sector rotations bode ill
for the wider market.
The demise of the bluechip Nifty Fifty in the early
1970s; the technology, media
and telecom implosion in
2000; and the blowup of
Please see STREET page B11
.
B2 | Friday, March 30, 2018
* ***
INDEX TO BUSINESSES
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
B
Baidu ........................... B3
Barclays ............. B10,B12
Bellah Perez................B4
BTC Korea.Com.........B10
Ecobank Transnational
.....................................A8
Eli Lilly......................B12
Elliott Management ... B3
Emirates Airline.......A16
Etihad Airways.........A16
Exxon Mobil...........A1,B3
Netflix..................B1,B11
New Enterprise
Associates ................ B2
NEX Group ................ B10
Norwest Venture
Partners....................B2
Nvidia........................B11
F
O-R
Facebook.........B1,B4,B11
Felicis Ventures..........B2
Fidelity Investments..B2
Onion...........................B3
Open Door Labs..........B2
Royal Dutch Shell.......B3
G-H
S
Gap .............................. B1
General Electric..........A2
GGV Capital.................B2
GKN ............................. B3
Hennes & Mauritz......B1
HSBC Holdings............B5
Sanofi........................B12
Shire..........................B12
Silicon Ranch .............. B3
Sonangol ..................... B5
Standard Chartered....B5
Sterling Organization.B6
Sunac China Holdings B6
Suzuki Motor..............B4
C
I-K
Cambridge Analytica..B4
Canadian Overseas
Petroleum.................A8
Charles Schwab .......... B2
Chevron.......................A8
Citigroup....................B12
CME Group................B10
Comerica....................B12
Concorde Garments....B2
Conviviality ............... B12
Credit Suisse.....B10,B12
Inditex.........................B1
iQIYI.............................B3
Khosla Ventures.........B2
D-E
Dana ............................ B3
DB Insurance.......A2,B10
Deutsche Bank .. B10,B12
L
LeEco Holdings ........... B6
Leshi Internet
Information &
Technology Corp.
Beijing.......................B6
LVMH...........................B6
M-N
Maruti Suzuki India....B4
Melrose Industries ..... B3
Microsoft.....................B1
MSCI..........................B11
T
Takeda Pharmaceutical
...................................B12
Tesla.....................B1,B11
Toyota Motor..............B4
U-V
Uber Technologies ...... B4
Under Armour.............B2
Univision
Communications.......B3
Vanguard Group..........B1
W-Y
Walmart......................B1
Yapian........................B10
INDEX TO PEOPLE
B
Bair, Jennifer..............B2
Bhuiyan, Shamsuzzaman
.....................................B1
Bogle, John.................B2
Hoffman, Garrett......B11
Hongbin, Hongbin.......B6
Pozsar, Zoltan...........B10
I-J
Rabois, Keith .............. B2
Islam, Sayeeful...........B2
Jha, Rajesh..................B2
R
S
Silva, Valter Filipe da.B5
Staley, Jes.........B10,B12
C
K
Caproni, Valerie .......... B3
Carroll, John..............B10
Kosoy, Brian................B6
T
M
Tchir, Peter................B10
Thomas, John ........... B11
E
El Kuwaiz, Mohammed
...................................B11
H
Hayer, David................B2
Hesano, Cristina Perez
.....................................B4
Mattson, Andy............A2
Menefee, Paul...........B10
Murray, William..........A3
Musk, Elon..................B1
Myerson, Terry............B1
W
Wayss, Rob.................B1
Wetselaar, Maarten ... B3
Wu, Xiaohui................B5
N-P
X
Nette, Anna-Sterre.....B2
Xu, Sean......................B5
Flagging Feeling
Sentiment expressed about Vanguard on Twitter has been less
favorable recently than opinions about rivals.
Average sentiment score*
16
Schwab
14
Fidelity
12
Vanguard
10
8
6
4
2
0
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March
*Recorded over a 20-day period, adjusted for volume of tweets sent. Higher scores reflect
more positive sentiment.
Source: Social Market Analytics
THE WALL STREET JOURNAL.
FUNDS
Continued from the prior page
founder John C. Bogle. The full
scope of the service issues at
Vanguard isn’t known.
Over the past year, sentiment expressed about Vanguard on Twitter has been less
favorable than opinions about
rival brokerage firms such as
Charles Schwab Corp. and Fidelity Investments, according
to Social Market Analytics,
Inc., a company that uses information on social media to
analyze how companies are
perceived.
Issues flagged by Vanguard
customers include incorrect
cost-basis information—what
investors paid for shares in a
fund—shown on their accounts, and problems with required minimum distributions
for retirees, incorrect account
balances displayed online, long
customer-service wait times
and login troubles. Some of
the problems identified by
customers have the potential
to trigger tax consequences
for investors.
A company spokesman said
“these are periodic systems issues unrelated to our growth.”
He added that “Vanguard is increasingly focused on investing in the people and technology to serve our clients more
effectively and efficiently, protect investor assets, and enhance fund performance.”
Vanguard isn’t the only investing firm to experience
technical problems of late.
Earlier this year, it was one of
several brokerage and mutualfund firms that suffered outages and slowdowns as market
turmoil sent individual investors scrambling to access their
accounts.
“It’s kind of a shame that
Mr. Bogle’s creation, which is
extraordinary, has been somewhat sullied by their performance administratively,” said
former Vanguard client Barry
Bergsman.
The retired Los Angeles media and marketing executive
said he experienced problems
last year when he decided to
move his Vanguard accounts
to a more “hands-on” wealth
management firm.
Mr. Bergsman said he instructed Vanguard to transfer
some fund positions to a custodian that would complete
the account transition and instead those positions were liquidated, leaving him with a
“substantial” tax bill.
He said Vanguard didn’t
quickly resolve the issue and
he lost patience, ultimately
paying the tax bill.
Some Vanguard clients who
have 403(b) retirement plans
have complained about administrative problems after Vanguard outsourced some of its
record-keeping duties to the
Newport Group in 2017. A
spokeswoman for Newport
Group declined to comment. A
403(b) plan is typically offered
to teachers, clergy and some
medical workers.
Chris Herbert, who manages four accounts at Vanguard including his wife’s
403(b) retirement plan, noticed last year that the value
of his wife’s 403(b) account
appeared to be $120,000 less
than it was supposed to be.
Four of the eight funds in the
account were missing in both
online and print statements.
Mr. Herbert, who is retired
and lives in Tempe, Ariz., said
he corresponded with customer-service representatives
by phone and online for several weeks before the problem
was resolved.
“I don’t want to leave Vanguard, but problems like these
lead you to ask if this is going
to continue to occur,” he said.
Earlier this week, a new
technical problem surfaced at
Vanguard that hadn’t occurred
before: some customers who
made new investments received emails erroneously informing them that there were
insufficient funds in their relevant settlement accounts.
Home Reseller Seeks Funds Under
BY ROLFE WINKLER
Open Door Labs Inc., which
buys and resells houses, is in
talks with investors to raise at
least $200 million at a roughly
$2 billion valuation, a deal
that would help it purchase
more homes and expand to
new cities, according to people
familiar with the company.
The target funding amount
would bring the company’s total equity capital raised to
over $500 million since its
founding in 2014. It also has
raised more than $1 billion of
debt to help finance its purchases of homes, said a person
familiar with the matter.
The new money is intended
to help fund an expansion of
its business in its six U.S.
metro areas, where it needs
additional equity to finance
the purchase of more homes,
and to enter new markets
across the U.S., these people
said.
Previous investors include
Access Industries, Felicis
Ventures,
GGV
Capital,
Khosla Ventures, New Enterprise Associates and Norwest
Venture Partners.
The company, which does
business as Opendoor, is the
largest of a new class of com-
panies that offer cash to buy
homes online, and then seek to
resell them at a slightly higher
price after making basic improvements. Smaller companies include OfferPad LLC and
Knockaway Inc.
By growing quickly, Opendoor hopes to achieve economies of scale that will help it
squeeze more profits out of
each house flip, according to
the people familiar with the
company. It borrows about
$2B
Valuation of Opendoor, which aims
to raise at least $200 million
90% of the purchase price of
the home, a person familiar
with the matter said.
The company makes more
money the faster it can buy
and sell homes. It now also
makes money by offering title
insurance services and helping
to secure mortgages.
A key risk, these people say,
is if the housing market cools,
which is a growing concern as
the Federal Reserve lifts bor-
rowing costs. In that situation,
Opendoor might be stuck
holding more homes on its
balance sheet, potentially eating into the company’s equity
if they decline substantially in
value.
Opendoor executives have
said they could spot a decline in the market earlier
than others and decrease
their offer prices to manage
risk. They argue that they
might also be able to raise
their fee for buying a home,
which today is about 7% to
8%, since the service they
provide might be more valuable with fewer buyers in the
market. Opendoor also hopes
to spread risk by diversifying
across more local housing
markets, said people familiar
with the matter.
The company is on the cusp
of moving into Charlotte, N.C.,
and San Antonio, these people
said, with plans to reach a total of 20 metro areas by early
next year, said one of these
people.
Executive Chairman Keith
Rabois said at a recent technology conference that Opendoor bought $1 billion of real
estate in 2017 and plans to
buy $3 billion to $4 billion
this year.
Armour
AppHacked
BY SARA GERMANO
AND MARIA ARMENTAL
Under Armour Inc. said
someone improperly accessed
data from one of its fitnesstracking apps in late February,
affecting some 150 million users
on its MyFitnessPal platform.
User data such as emails,
usernames and passwords were
exposed, but government-issued identifiers like Social Security and driver’s license numbers, as well as credit-card
information, weren’t compromised, the athletic-wear company said. Under Armour said it
has enlisted data-security firms
and law enforcement to investigate the scope of the breach.
Under Armour urged users of
the MyFitnessPal app, which
tracks workouts and nutrition
plans, to change their passwords immediately.
The company’s investigation hasn’t found evidence that
unauthorized people have used
the exposed usernames or
passwords to access the MyFitnessPal accounts, a person
familiar with the matter said.
SAFETY
Continued from the prior page
have been recruited,” he said.
Bangladeshi authorities have
“got their hands pretty full,”
said Jennifer Bair, associate
professor of sociology at the
University of Virginia, who has
researched the Bangladesh apparel industry. “It’s going to be
a really tall order to both complete the remediation of the existing factories and also assume responsibilities that are
currently under the jurisdiction
of the Accord and Alliance.”
Since the garment industry
took off in Bangladesh in the
1980s, it has been plagued by
industrial disasters, including
the Tazreen fire of 2012,
which killed more than 100
people after managers prevented workers from leaving
their stations when a fire
alarm sounded.
Industry analysts say garment factories have become less
dangerous since 2013, though
the Bangladeshi government
doesn’t compile comprehensive
statistics on factory injuries and
deaths. Still, deadly incidents
continue, including a boiler explosion at a garment factory
last year that killed 10 workers
and injured dozens more.
Under the Alliance and Accord, factories that don’t invest
in safety improvements are
blacklisted from selling to major Western retailers, a move
designed to protect the roughly
3 million Bangladeshis making
garments for the brands.
Western retailers have continued these efforts also because
their biggest investors want to
ensure that factory improvements made after the Rana
Plaza collapse are maintained to
lower the reputational risk of
doing business in Bangladesh.
“You have to make sure that
everything you have worked so
hard for doesn’t fall flat the moment you leave,” said AnnaSterre Nette, senior adviser for
responsible investment and governance, to MN, a major Dutch
pension-fund manager that invests in the apparel sector.
The Accord and Alliance report that more than 80% of
AZURE
Continued from the prior page
a leader in cloud computing.
Its Azure operations is No. 2
behind Amazon.com in the
cloud-infrastructure market.
And its Office 365 productivity
apps and its Dynamics business-software services are rapidly growing, multibillion-dollar businesses.
“The Microsoft of old could
never have made this move,”
Mr. Reback said. “But the
pieces were not in place to
make the move.”
Mr. Myerson, a 21-year Microsoft veteran, will leave the
company and help with the
transition “over the coming
months,” Mr. Nadella wrote.
The company is breaking
Windows in pieces. The platform technology, on which Microsoft’s partners build their
own devices, apps and services, will now fall under Scott
Guthrie, who runs the Azure
WONG MAYE-E/ASSOCIATED PRESS
A
AbbVie.......................B12
Academy Securities..B10
Access Industries ....... B2
Ally Financial............B12
Alphabet .............. B1,B11
Amazon.com
.................. A1,B1,B2,B11
Anbang Insurance Group
.....................................B5
Apple...........................B1
Ariad Pharmaceuticals
...................................B12
Bangladesh tried to upgrade its inspection policies for factories after the Rana Plaza tragedy.
State of Repairs
Western retailers are helping to fix safety problems in Bangladesh but there is room for improvement.
Remediation progress of
safety issues*
Completion rates of selected common remediation items
Removal of lockable and collapsible gates
100%
97%
Overall adequate cables and wiring
80
82
60
Lightning protection system
72
40
Detailed engineering assessment approved by Accord
58
20
0
2015
’16
’17
Installation of fire detection and prevention systems
39
Note: As of March 1, 2018 *Identified during initial inspections by the Accord
Source: Accord on Fire and Building Safety In Bangladesh
factory safety issues identified
in safety inspections, such as
inadequate fire escapes and
dangerous electric wiring,
have been fixed.
Such efforts have “helped
to establish a culture of
safety,” said David Hayer, senior vice president of global
sustainability at Gap, a member of the Alliance.
Walmart, a founding member of the Alliance, said its
goal was to transition to a “locally run safety-monitoring organization” that will maintain
Lagging Legacy
Microsoft's More Personal
Computing segment, which
includes Windows, has been a
slow grower.
$30 billion
Q2 FY 2018
25
All other
revenue
20
$16.7B
15
10
More
Personal
Computing
5
$12.2B
0
FY 2017
’18
Source: the company
THE WALL STREET JOURNAL.
business. Mr. Guthrie’s unit,
called Cloud + AI Platform, will
also include the company’s
mixed-reality business, including Microsoft’s Hololens device, as well as its artificial-in-
THE WALL STREET JOURNAL.
factory safety programs pioneered by the organization,
such as a worker helpline.
The Accord has said it extended its efforts partly because it needed more time to
complete its mandate. While
it has successfully removed
lockable and collapsible gates
from nearly all factories that
had them, preventing factory
owners from locking their
workers in during the workday, more expensive and complex operations are taking
longer. For example, only 39%
of Accord factories that had
inadequate fire systems during initial inspections have
since installed fire detection
and prevention systems that
are fully up to code.
Bangladesh still needs help
when it comes to monitoring
safety, said Sayeeful Islam, the
managing director of Concorde
Garments, a company that sells
to a range of Western retailers
including Walmart. If the Accord and Alliance were to leave
Bangladesh, “I would be worried for my country.”
telligence business.
Microsoft’s devices business, including its Surface
lineup of computers, will fall
to Rajesh Jha, who has been in
charge of Microsoft’s Office
group. The new, bigger unit,
called Experiences & Devices,
will also include Microsoft’s
efforts to develop new features
in Windows.
In his note, Mr. Nadella
called the future of Windows
“bright,” as the company
pushes to develop features
that take advantage of new
types of devices and emerging
technologies such as artificial
intelligence. Nearly 700 million devices run Windows 10,
the software’s latest version.
All told, some version of Windows is on more than 1.5 billion devices world-wide. In the
most recent quarter, the More
Personal Computing unit accounted for 42% of Microsoft’s
revenue.
“This is the most sweeping
reorg that I can recall,” said
Brad Silverberg, who ran the
Windows division when Microsoft launched its seminal Windows 95 operating system.
In the 1990s, Windows was
so dominant that a federal
judge ruled that it was a monopoly. The U.S. Department of
Justice sought to break up Microsoft, accusing the company
of abusing its dominance in
the PC operating system market to crush rivals. The company ultimately signed a consent decree in 2002, agreeing,
in part, to make Windows interoperable with non-Microsoft software.
While Microsoft is still focused on building the platform
upon which other tech companies run their technology, that
focus is now on Azure, said
Mr. Silverberg, a venture capitalist who co-founded Fuel
Capital, a San Francisco-based
firm. He praised Mr. Nadella’s
acknowledgment of Windows’
reduced importance.
“He recognizes the world
for what it is, not what it used
to be,” Mr. Silverberg said.
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | B3
* * * *
BUSINESS NEWS
Shell Makes Power Play in Electricity
Its recent deals are
part of a long-term
strategy for its huge
natural-gas output
Exxon Fails to Stop
Climate Inquiries
LONDON—Royal
Dutch
Shell PLC is on a spree of
small but strategic acquisitions in an area oil companies
have long avoided: the power
sector.
In the past few months, the
British-Dutch oil giant bought
a utility, an electric-car charging business and a stake in a
solar-power company, part of
a broader long-term plan to
marry its huge natural-gas
output with a futuristic utility
business.
Shell is making a bet it can
profit from changes to the
power market as renewables
begin to play a bigger role,
combining its large energytrading division and massive
natural-gas
supply—the
world’s largest from a nonstate-backed company—to fill
gaps when the sun doesn’t
shine or wind doesn’t blow.
Eventually, Shell said it could
even compete with tech companies, crunching data about
how and when customers use
electricity to give them a better deal.
If all goes according to plan
over several decades, Shell
said it would produce gas at
the well, use it to produce
electricity and then sell power
to homes, businesses and electric-vehicle charging stations—a similar model to its
oil-rig-to-gas-station petroleum business.
It “makes us future-proof in
a world where electricity becomes the biggest game in
town,” said Maarten Wetselaar, Shell’s head of gas and
new energies, in a recent interview.
Shell last month bought a
midsize U.K. power supplier,
First Utility, for an undisclosed amount, giving it direct
SEONGJOON CHO/BLOOMBERG NEWS
BY SARAH KENT
Big oil companies like Shell are anticipating shifts in energy consumption as many governments try to reduce fossil-fuel consumption.
access to retail electricity consumers for the first time. Last
year, the company bought one
of Europe’s biggest electric-vehicle charging companies, New
Motion, also for an undisclosed sum.
The company is in a partnership with Ionity—a joint
venture of large car manufacturers established to create a
network of fast-charging
points across Europe. In January, Shell announced plans to
acquire a nearly 44% stake in
U.S. solar company Silicon
Ranch Corp. in a deal valued
at about $200 million.
Shell has said it plans to
spend between $1 billion and
$2 billion a year in what it
calls its “New Energies” division through 2020—more than
many other large oil companies are setting aside for renewables and electricity generation. The company is
building wind farms off Europe’s coast and has said future investments could also
include
gas-fired
power
plants.
The moves reflect Shell’s
need to find an outlet for its
prodigious natural-gas output,
Powering Up
Big oil companies are eyeing the power sector, anticipating a sharp increase
in electricity demand and a growing market for their natural-gas production.
Primary energy demand
Millions of metric tons of oil equivalent
5
Electricity generation
Terawatt hours
Forecasts
40,000
Oil
Natural gas
Coal
Bioenergy,
hydro,
other
renewables
4
3
2
30,000
20,000
10,000
1
Nuclear
0
2010
0
’20
’30
’40
2010
Note: Forecasts from 2016 based on current and announced global energy policy commitments
Source: International Energy Agency
which grew with the company’s roughly $50 billion acquisition of BG Group in 2016.
They also show how Shell
and other large oil companies
are anticipating shifts in energy consumption, as many
governments try to reduce fossil-fuel consumption under the
2015 United Nations Paris
agreement to fight climate
change. Whether oil demand
will level off in the coming decades is up for debate, while
electricity consumption is
widely expected to increase.
By 2050, power consumption is expected to outstrip de-
Hostile Bid for U.K.’s GKN Prevails
LONDON—British
turnaround specialist Melrose Industries PLC on Thursday won
a bruising takeover battle for
GKN PLC, thwarting a $6.1 billion bid by Ohio-based autoparts maker Dana Inc. to combine with its U.K. rival.
GKN, one of Britain’s oldest
businesses, in January rejected
an unsolicited £7.4 billion
($10.5 billion) takeover offer
from Melrose, saying it undervalued the company, which
makes components for General
Motors Co., Boeing Co. and Airbus SE. Melrose took its cashand-stock proposal to GKN
shareholders, winning backers
such as Elliott Management
Corp., which thought the business would fare better under
Melrose management.
While GKN was fending off
Melrose, it unveiled a restructuring plan and an agreement
to sell its car-parts business to
Dana. That cash-and-stock
deal, announced this month,
would have created the world’s
largest supplier of axles and
other driveline components.
On Thursday, which was a
deadline under British takeover
rules, Melrose said 52.43% of
GKN shareholders had accepted
its offer of £1.4 billion in cash
and 1.69 of its own shares for
each GKN share. To appease
CHRIS RATCLIFFE/BLOOMBERG NEWS
BY ROBERT WALL
The supplier of plane parts is being bought by Melrose Industries.
the British government, Melrose also promised to keep the
business based and listed in
the U.K. for at least five years.
“We are delighted and
grateful to have received support from GKN shareholders
for our plan to create a U.K industrial powerhouse,” Melrose
Chairman Christopher Miller
said.
Melrose buys struggling
businesses that make diverse
industrial components and
equipment and tries to whip
them into shape for a sale, not
unlikely private equity.
GKN, in acknowledging defeat, said it would work with
Melrose “to ensure the success
of the enlarged company.”
With its offer, Dana planned
to re-establish itself in the U.K.
even though its physical headquarters would remain outside
Toledo. It said it expected to
lower its tax bill by becoming a
U.K. company.
The company promised to
seek a U.K. listing for the
merged company to help win
support from British institu-
tional investors. It also boosted
the cash portion of the transaction this week to win over
GKN shareholders.
“We are, of course, disappointed by today’s outcome,”
Dana Chief Executive James
Kamsickas said. The proposed
deal with GKN was an opportunity, he said, “not a required or
critical asset.”
The outcome is also a setback for European plane maker
Airbus, which had questioned
Melrose management’s willingness to invest—a charge Melrose rejected. Airbus declined
to comment Thursday.
GKN, which is based in Redditch, England, has maintained
its status as a giant of British
industry through a series of reinventions and changes in focus. At one time or another,
the company once known as
Guest, Keen and Nettlefolds
has made products as diverse
as cannonballs, skillets, troop
carriers and scaffolding. More
recently, it has invested heavily
in making plane parts, capitalizing on a boom in demand for
commercial airliners.
GKN shares slumped last
year after the company issued
profit warnings and said its
CEO-designate, Kevin Cummings, was leaving amid problems in the aerospace division,
which he ran. The stock rose
9.5% on Thursday.
’20
’30
’40
A federal judge has
thrown out a lawsuit that
Exxon Mobil Corp. had filed
to stop government investigations into its assertions
about climate change.
Manhattan U.S. District
Judge Valerie Caproni on
Thursday dismissed the case
with prejudice, meaning the
complaint cannot be refiled.
“Exxon’s allegations that
the [state attorneys general]
are pursuing bad faith investigations in order to violate
Exxon’s constitutional rights
are implausible and therefore
must be dismissed for failure
to state a claim,” she wrote.
In 2015, New York Attorney General Eric Schneiderman subpoenaed Exxon Mobil, seeking documents about
its research on and response
to climate change over several decades. About six
months later, Massachusetts
Attorney General Maura Healey filed a similar demand.
Exxon, in a civil complaint
initially filed in Texas, had
asked federal courts to stop
the New York and Massachusetts attorneys general from
investigating whether the oil
giant misled investors and
the public by playing down
the impact of global warming,
saying the investigations
were politically motivated.
A company representative
couldn’t be reached for comment Thursday after regular
business hours.
—Maria Armental
THE WALL STREET JOURNAL.
mand for Shell’s core business
of oil and gas, said Mr. Wetselaar. The company’s most recent of several potential scenarios, published Monday,
foresees a world in which demand for oil and gas peaks in
the next 50 years, driven by
successful efforts to meet
global climate goals. Reliance
on electricity, by contrast, is
expected grow from around
20% of energy consumption to
closer to 50% by midcentury.
“To be an energy major by
then, we’d better play in that
sector,” Mr. Wetselaar said of
electricity.
Baidu’s Video-Streaming
Unit Falls in Market Debut
BY AUSTEN HUFFORD
The Netflix-like unit of Chinese search-engine giant
Baidu Inc. closed nearly 14%
below its offering price in its
stock market debut.
The American depositary
shares of video streamer iQiyi
Inc. opened trading Thursday
at $18.20, slightly above the $18
offering price. The initial public
offering, which sold 125 million
shares and raised $2.25 billion,
priced at the midpoint of its
$17-to-$19 marketed range.
IQiyi shares, trading on the
Nasdaq Global Market under
the ticker IQ, closed at $15.55.
IQiyi was the most heavily
traded stock on Nasdaq.
The unprofitable company
has been looking to raise money
to stay ahead in the competitive
Chinese video-streaming sector.
It plans to spend half of the
proceeds raised from the IPO to
“expand and enhance” its content offerings, according to a
securities filing.
Robin Li, Baidu co-founder
and chief executive, is retaining more than 93% of voting
control in iQiyi, the filing said.
IQiyi, founded in 2010, reported 60.1 million subscribers
at Feb. 28, roughly 59 million
of whom pay for the service.
Onion Staff to Unionize in Face of Cuts
BY LUKAS I. ALPERT
For the folks at the Onion,
labor relations are no laughing
matter.
Editorial and video staffers
at the humor website and its
sister sites, Clickhole and A/V
Club, have announced that
they are unionizing, at a time
when controlling shareholder
Univision Communications
Inc. is exploring extensive cost
cuts at its digital properties.
In a statement, employees
of the three Chicago-based
sites said they are organizing
with the Writers Guild of
America, East. The collective
bargaining unit will represent
about 100 people across the
three sites.
The organizing effort began
in earnest late last year but
accelerated in recent weeks as
Univision pulled plans for an
initial public offering and The
Wall Street Journal reported
that a business review was under way to cut costs across the
company, including significant
layoffs.
Organizers said they were
mainly focused on establishing
greater transparency in decision-making at the websites
and better communication between staffers and management.
“Most people are satisfied
working here, but we are seeking to set in stone the things
we like and preserve what we
have,” said Onion staff writer
Devin Schiff, who served on
the organizing committee.
“The digital world is a precarious place and it is good to
have protections.”
A spokesman for Onion Inc.
said the company was ready to
begin negotiations with the
union.
“We are dedicated to providing an environment where
all our employees can thrive
and we respect their right to
unionize. We have begun having discussions with the
WGAE about the path forward
and hope to arrive at an arrangement in short order,” the
spokesman said.
Univision acquired a 40.5%
stake in Onion Inc. in January 2016 for $27.1 million, as
the Spanish-language broadcaster sought to expand its
holdings into English-language digital properties. The
deal included rights to acquire the rest over time, for
as much as $50 million.
Following the acquisition,
the humor website became
part of Univision’s Fusion Media Group, which also includes
the Root, Splinter and former
Gawker Media properties like
Gizmodo, Jezebel and Deadspin. The Onion properties are
the only Fusion Media Group
sites that haven’t already been
unionized.
Univision, which is saddled
with billions in debt since private-equity firms took it private in 2007, has hired outside
consultants to review its business operations. The firm’s
initial recommendations proposed cutting Fusion Media’s
budget by as much as a 35%,
the Journal reported, though
final amounts will be settled
over the coming months.
.
B4 | Friday, March 30, 2018
* *
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
WE’RE
BULLISH ON Find Out What Facebook Knows
F
COMFORT
The
to work.
With leather-lined interior, padded
collar and custom soles — the world’s
most comfortable shoe is now
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Y
ou can request a
folder of the things
you have uploaded to
or shared on Facebook from
all your sessions on various
devices—plus other curious
information—to save on your
computer. You’ll find the option on the general account
settings page. Once you unzip the folder, open the “index.htm” file in a browser,
and start looking around.
Right now, you’ll see every Facebook friend and all
your videos, pictures, events,
liked pages, private messages and timeline posts.
Soon, Facebook will have an
improved download tool, and
include more information
such as posts you’ve liked,
your reactions and comments, even your search and
location history.
What isn’t in this single
download is a lot of the behind-the-scenes data that
You can get a folder of your personal data from the social-media firm.
Facebook may use to increase engagement and target ads. For instance, it
doesn’t list people who
might have uploaded your
phone number or other information when syncing
their contacts with Facebook. It doesn’t say what ads
third-party data providers
have targeted at you.
That doesn’t mean there
aren’t some interesting
things in this download. You
may have already heard of
users downloading their accounts and coming upon
alarming information.
One of the more shocking
things some users discovered in their files was a list
of phone calls and text messages. The furor prompted
Facebook to post an explanation: Calls and texts were
logged as part of an opt-in
contact-syncing “feature”
available to Android users
who have Facebook’s standalone Messenger app or the
Facebook Lite app.
Contact uploading is “a
way to more easily find the
people you want to connect
with,” says Facebook, which
insisted it was always optin: “People have to expressly agree to use this
feature.” Call and text logging was only part of contact syncing on Android. On
Apple’s iPhones, Facebook
never had access to log
calls, yet still offered contact syncing.
You can turn off the feature, and the data will be deleted if you do, says Facebook. (Go to Messenger, click
on your profile picture, then
click People. Look for the
Synced Contacts button.)
In your downloaded file,
there is a list of companies
that Facebook says have
your contact info. (In your
file, click on Ads.)
Your list could be long,
and you may be confused by
some of the brands that appear. My own included 11
companies. Some, like Uber,
weren’t a surprise. I’ve
never signed onto Uber
with Facebook, but I do
have the app.
acebook’s website explains: “When you
share information like
your phone number or email
address with a business, they
may add it to a customer list
that can be matched to your
Facebook profile.”
One mystery company on
my list: a fitness app called
Aaptiv. While I’m certainly in
the target market, I’ve never
downloaded its app or
clicked on its ads.
The company told me it
doesn’t have my contact information, but that it may
have used an outside data
broker to target me. Yet the
mystery persists, since Facebook’s list purports to show
only companies in possession of my information.
Another section of your
download names the apps
you log into with Facebook.
It is not a complete history.
If you are planning on deleting your Facebook account, make a note of all the
apps you have linked to—because they all obtained some
of your personal data from
Facebook. Facebook says developers might keep information about you even after
you removed them.
Last but not least, click Security to check your list of Active Sessions (machines currently logged into your
Facebook account) and Account Activity. This is a
lengthy log of all of the “sessions” you’ve had on Facebook,
and their associated times, devices and Internet Protocol addresses. While the list doesn’t
name actual locations, every IP
address correlates to some
geographical location. Facebook even says it uses IP addresses to target ads to you,
even if you don’t let the app itself track you via GPS.
Settlement
Is Reached
In Fatal
Uber Crash
BY ALLISON PRANG
ANGEL NAVARRETE/BLOOMBERG NEWS
Un-Sneaker™ goes
Social-media users have
long known
that Facebook
knows a lot
about them.
In the wake of the Cambridge Analytica scandal,
people are starting to ask,
specifically, how much personal information are we
talking about here?
Facebook is taking steps
to curb the amount of data
that is shared about us: It is
rolling out new tools for better controlling your privacy
settings in the coming weeks
and it is ending certain adtargeting options that have
been available to third-party
data brokers. While waiting
for these changes to take effect, there is something you
can do to get some answers:
Download your Facebook data.
ILLUSTRATION: DADO RUVIC/REUTERS
PERSONAL TECHNOLOGY | By Katherine Bindley
The recall to retrofit the power steering component adds to challenges Elon Musk is dealing with.
TESLA
Continued from page B1
cash and undermine Tesla’s
bid to build electric cars for
the masses.
The downgrade, along with
news this week that federal investigators were probing a fatal crash of a Tesla car, have
led to a heavy selloff of the
company’s shares and bonds,
making it potentially more difficult to raise capital.
On Thursday, Tesla’s stock
rose 3.2%, to $266.13, during
the regular trading session,
and fell slightly in after-hours
trading following the recall
news. It has been a rough
month for the stock, which has
fallen about 20% over the 30day period.
Tesla is expected to reveal
Japanese Car Makers
Join Hands in India
TOKYO—Toyota Motor
Corp. and Suzuki Motor Corp.
said they would team up in
India, swapping models to
capture a bigger share of the
rapidly growing market.
Toyota said it would
provide its locally made Corolla
sedan to Suzuki. In return,
Toyota will get two of Suzuki’s
popular models to sell, the
Baleno hatchback and the new
Vitara Brezza sport-utility
vehicle.
The deal helps fill holes in
first-quarter production results early next week.
The recall on Thursday involves only the Model S. Tesla
said its service center in Montreal began noticing the issue
in the sedans and attributed
the corrosion to the calcium
or magnesium salts used to
treat roadways during the
winter months. If the bolts
fail, the car can still be
steered but requires additional force.
“This primarily makes the
car harder to drive at low
speeds and for parallel parking, but does not materially
affect control at high speed,
where only small steering
wheel force is needed,” the
company said.
The cost of the recall is expected to be minimal, Tesla
said, with the supplier paying
for the new part.
their lineups in India.
Suzuki has largely failed to
move upmarket with pricier
cars. The Corolla is considered
a high-end vehicle in a country
dominated by small, fuelsipping models. Conversely,
Toyota has had trouble making
headway in the country’s mass
market for autos.
Toyota’s share of overall
sales hovers around 5%, while
Suzuki’s local unit, Maruti
Suzuki India Ltd., has 47% of
India’s passenger-car market.
The deal is one of the first
fruits of a business partnership
that Toyota and Suzuki began
exploring in late 2016.
—Sean McLain
A law firm hired by the
family of an Arizona woman
who died after being struck by
a self-driving Uber Technologies Inc. vehicle said Thursday the issue “has been resolved.”
The Uber vehicle, which
was in self-driving mode but
had a human operator behind
the wheel, hit 49-year-old
Elaine Herzberg while she was
walking her bike outside of a
crosswalk March 18, Tempe
police said. She ultimately
died from her injuries.
Terms of the settlement
weren’t available.
“The daughter and the husband of the late Ms. Herzberg
have no further comments on
this matter as it has been resolved,” Cristina Perez Hesano, an attorney for Glendale, Ariz.-based Bellah Perez
PLLC, said in an email to The
Wall Street Journal.
Uber declined to comment.
In the wake of the first
known fatality involving a
self-driving vehicle, Uber has
suspended its autonomous car
program in the four cities
where it was testing it.
The San Francisco-based
company also decided not to
renew its permit to test those
kinds of vehicles in California.
Additionally, an Uber executive who worked on technology for autonomous vehicles,
Lior Ron, is leaving the company.
About a year ago, shortly
after a self-driving Uber vehicle was involved in a crash in
Tempe, law firm Bellah Perez
wrote on its website the concept of negligence will have to
evolve as autonomous vehicles
become more prevalent on
roadways.
“As personal injury attorneys, we at Bellah Perez want
to ensure any victims of negligence out on the road receive
justice for their suffering,” the
post said.
In the March 2017 accident,
Tempe police said the accident wasn’t the Uber vehicle’s
fault and that there were also
no major injuries.
—Cara Lombardo
contributed to this article
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | B5
* * * * *
BUSINESS NEWS
Angolan Elite Suspected of Fraud
A son of ex-president
and others are linked
to an alleged illegal
transfer of $500 million
One of a former Angolan
president’s sons and a former
central banker are suspected
of using accounts at HSBC
Holdings PLC and Standard
Chartered PLC in an attempt
to defraud the country’s central bank by transferring $500
million through the U.K.-based
lenders, people familiar with
the matter said.
The prosecutor’s office in
Angola said the money was
transferred from Angola’s central bank, allegedly to guarantee a $30 billion financing
deal, according to a statement
posted on the government
website Wednesday.
According to one of the
people familiar with the matter, a document showed the
$500 million went to a Credit
Suisse account, but that document was forged. Instead, the
money turned up at an account
at HSBC, where it was flagged
to authorities and frozen, said
the people familiar with the
matter.
Earlier this week, Angolan
prosecutors named as suspects
in the allegedly illegal transfer
from the central bank, José Filomeno dos Santos, the son of
former President José Eduardo
dos Santos, and four others,
including the former Angolan
central bank governor, Valter
Filipe da Silva, according to
the government statement.
Mr. da Silva couldn’t be
reached for comment, but has
previously denied wrongdoing.
Representatives of Angola’s
central bank couldn’t be
reached for comment. José Filomeno dos Santos couldn’t be
reached for comment.
In a statement read during
ED CROPLEY/REUTERS
By Margot Patrick,
Patricia Kowsmann
and Gabriele
Steinhauser
Prosecutors said $500 million was transferred from Angola’s central bank in Luanda allegedly to guarantee a $30 billion deal.
an Angola news-channel
broadcast on Tuesday, José Filomeno dos Santos, who until
January ran the country’s sovereign-wealth fund, said he
voluntarily reached out to the
prosecutor’s office in late February “to collaborate in finding
the truth.” He confirmed that
he has been named on March 6
as a suspect in the case. “Mr.
dos Santos remains available
to continue to cooperate with
authorities to completely and
satisfactory resolve this process,” said the statement that
the news presenter read.
The documents that indicated the $500 million went to
a Credit Suisse account are
now being investigated by the
Angolan central bank, according to one of the people familiar with the matter.
In a statement, Credit
Suisse said it “has no record of
the alleged fraud, which involved falsified documentation, and has not received any
funds in relation to it.” The
company also said it “has provided available information to
relevant law enforcement
agencies.”
Standard Chartered said
Wednesday the funds used in
the alleged attempted fraud
came from the Angolan central
bank’s Standard Chartered account. It said it is working
closely with the central bank
and U.K. law enforcement.
The U.K.’s National Crime
Agency said this week it is investigating the “potential $500
million fraud” and that it froze
the entire sum in December. It
said it is preparing to return
the money to Angola, while it
continues its investigation in
cooperation with authorities
there.
Both HSBC and Standard
Chartered have previously
been sanctioned by authorities
in the U.S. and elsewhere over
lax money-laundering controls,
but in recent years have
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strengthened their ability to
detect such crimes, a necessity
to avoid the possibility of losing a banking license. The U.K.
also has strengthened its financial crime-fighting powers
and was able to freeze the Angolan money because of new
laws that came in last year.
The prosecutor’s naming of
José Filomeno dos Santos as a
suspect comes at a time when
Angola’s new president, João
Lourenço is escalating a purge
of family members and allies
of his predecessor from government posts.
José Filomeno dos Santos
was named as chairman of Angola’s sovereign-wealth fund
by his father in 2013 to oversee the investment of $5 billion on behalf of the country.
Mr. Lourenço replaced the
fund’s entire board in January.
José Eduardo dos Santos,
who remains the leader of Mr.
Lourenço’s ruling MPLA party,
stepped down in September af-
ter 38 years at the helm of the
southern African country.
After ending three decades
of civil war in 2002, José Eduardo dos Santos oversaw an
oil boom that turned Angola
into the continent’s secondlargest crude producer, behind
Nigeria. Yet his tenure was
marred by allegations of nepotism and widespread looting of
public coffers while the majority of Angola’s 30 million citizens continued to live in poverty. Mr. dos Santos and his
appointees have denied the allegations.
In November, Mr. Lourenço
dismissed Isabel dos Santos,
one of the former president’s
daughters and Africa’s richest
woman, according to Forbes
magazine, as the head of the
state oil company, Sonangol.
Angolan authorities have said
they are investigating Ms. dos
Santos in connection with
missing funds from Sonangol.
She has denied the allegations.
China Trial
ShowsHazy
Regulating
SHANGHAI—When Chinese
insurance magnate Wu Xiaohui
appeared in court this week to
face fraud charges, his case
spotlighted how the country’s
financial sector is built on
shifting legal foundations.
During Wednesday’s trial in
Shanghai, Mr. Wu, the former
chairman of Anbang Insurance Group Co., expressed remorse and asked for leniency
after prosecutors accused him
of falsifying documents to raise
billions of dollars and lining
his own pockets along the way.
The tycoon’s response: “I
don’t understand law.”
Mr. Wu’s comment, contained in an official court summary, resonated in China
among those who see pitfalls
in a rapidly evolving financial
sector where rule making and
justice often appear haphazard. “Regulations in China can
be fairly random and simply
serve as a tool in some cases,”
said Sean Xu, an attorney at
Shanghai Highper Law Firm.
Mr. Wu remains in custody
and his lawyers didn’t respond
to questions. The Shanghai No.
1 Intermediate People’s Court
didn’t say when a verdict
might be handed down.
Mr. Wu has epitomized Chinese financial trends in recent
years. Today, a dizzying array
of cash-management choices
are available, including by mobile phone, though who is policing it isn’t always clear.
On the same day last month
that prosecutors charged Mr.
Wu, the government seized
control of Anbang, citing a need
to protect the firm’s customers.
By late 2016, Mr. Wu and
other upstart financiers were
being derided by regulators as
financial “crocodiles” for their
ability to navigate murky legal
waters, taking advantage of
loopholes. This month, China’s
legislature agreed to plug holes
now blamed for allowing firms
like Anbang to expand virtually
unchecked. —James T. Areddy
and Stella Yifan Xie
.
B6 | Friday, March 30, 2018
* *
THE WALL STREET JOURNAL.
BUSINESS NEWS
Chinese Tycoon Acknowledges Failure
Sun Hongbin says he
would be a ‘moron’ to
put more money into
video-streaming firm
BEIJING—Property tycoon
Sun Hongbin has played the
white knight for troubled companies. Now he is giving up on
one, saying that he wasn’t able
to restore a debt-plagued
video-streaming venture.
Mr. Sun, chairman of developer Sunac China Holdings
Ltd., said his company’s investment of 15 billion yuan, or $2.4
billion, in Leshi Internet Information & Technology Corp.
was a “failure.”
“For Leshi, how could I now
give more money?” Mr. Sun
said Thursday at a press conference for Sunac’s annual results in Hong Kong. “Lend
them another 10 billion [yuan]?
Am I a moron?”
Mr. Sun’s blunt acknowledgment contrasted with his earlier efforts to rescue Leshi, part
of heavily indebted LeEco
Holdings, a company founded
by entrepreneur Jia Yueting.
JEROME FAVRE/BLOOMBERG NEWS
BY DOMINIQUE FONG
Mr. Sun’s property firm, Sunac China Holdings, invested $2.4 billion in a unit of LeEco Holdings.
The technology conglomerate’s
range of businesses includes
smartphones and electric vehicles.
Sunac’s investment in January 2017 gave it an 8.6% stake
in Leshi, making the real-estate
developer the second-largest
shareholder, after Mr. Jia, of
the Shenzhen-listed tech company. The deal offered Leshi a
reprieve as it faced a cash
crunch. Mr. Sun was later
elected Leshi’s chairman.
In subsequent months,
LeEco’s own debts began piling
up, affecting Leshi. In December, a Beijing court seized Mr.
Jia’s bank deposits, 1 billion
shares of Leshi and two of his
properties in the Chinese capital. A month later, the freeze
scuttled a proposal to sell off
some of those assets and re-
structure Leshi.
Two weeks ago, Mr. Sun
stepped down as Leshi’s chairman.
Sunac’s full-year results
showed that Leshi was a drag
on earnings. The developer
said losses related to its investment in the tech company
prompted a write-down of 16.5
billion yuan ($2.62 billion), according to regulatory filings.
Representatives for Leshi
couldn’t be reached for comment.
Investors reacted to Mr.
Sun’s comments Thursday by
sending Leshi’s already battered shares falling more than
6%.
However, thanks to last
year’s booming housing market, Sunac reported a net profit
of 11 billion yuan—more than
four times that of the year before—and revenue of 66 billion
yuan, mostly from residential
and commercial real-estate
sales. Sunac’s Hong Kong-listed
shares rose 1.3%.
The developer said it was
“still optimistic” about other
big- and small-screen operations in which it has invested,
predicting growth at two other
LeEco divisions, television
maker New Leshi Zhijia and
film studio Le Vision Pictures,
to help offset losses.
The Leshi deal wasn’t the
first time Mr. Sun has attempted to come to the rescue
of fellow tycoons. Three years
ago, Sunac made a bid to acquire rival Kaisa Group Holdings Ltd. after it defaulted on
loans and bond payments, but
the deal didn’t go through.
In July 2017, Sunac, which
itself is among China’s most indebted developers, scooped up
theme-park and other tourism
projects of property conglomerate Dalian Wanda Group—
controlled by billionaire Wang
Jianlin—after the group’s borrowings came under the scrutiny of Chinese regulators.
After the Leshi and Wanda
deals, Sunac’s own debt load
began to draw attention for
possible risks. The deal with
Leshi, in particular, piled on
new and—for Sunac investors—unanticipated risks.
“I don’t care what people
say about this [failure],” Mr.
Sun said Thursday. “Please do
not mention Leshi in the future.”
—Yang Jie
contributed to this article
BY ESTHER FUNG
A unit of LVMH Moët Hennessy Louis Vuitton SE paid
$110 million for a store on Los
Angeles’s ritzy Rodeo Drive, in
a sign that values of property
in the country’s most fashionable shopping districts haven’t
succumbed to the malaise hitting retail real estate.
The seller of the empty,
6,200-square-foot, single-story
building at 456 N. Rodeo Drive
was Sterling Organization, a
real-estate private-equity firm
based in Palm Beach, Fla.
Sterling had purchased the
property recently for $55 million, said President and Chief
Executive Brian Kosoy.
LVMH, which has a portfo-
lio of upscale brands including Louis Vuitton and Loewe,
owns two other stores on Rodeo Drive, where lavishly decorated stores cater to a clientele of big spenders.
The Paris-based company
didn’t respond to a request for
comment.
The deal, which amounts to
about $17,750 a square foot, is
a sign that investors are still
willing to pay top dollar for
real estate along tony strips—
known as “high streets” in the
retail world—despite turmoil
in the retail industry from online shopping. The values of
many other types of retail
property have been falling as
brick-and-mortar stores contract or fail.
In the 12 months to February, the property values of
malls and strip centers fell 11%
and 6%, respectively, according to real-estate research
firm Green Street Advisors’
Commercial Property Price Index.
Retail rents on Rodeo Drive
in 2017 were $875 a square
foot a year, the second highest
in the U.S. after upper Fifth
Avenue in New York, according
to a November report by realestate-services firm Cushman
& Wakefield. Rodeo Drive
rents in 2016 were $800 a
square foot.
Upper Fifth Avenue rents
stayed constant at $3,000 a
square foot in 2016 and 2017,
the report said.
“Most retailers are not
turning their backs on high
street locations,” the report
said.
This week, Brookfield Property Partners LP reached a
deal with GGP Inc. to buy the
remaining stake of the mall
company that it doesn’t already own, for a lower-thanexpected price. The deal sent
shock waves through the retail
world because GGP owns some
of the most upscale malls in
the country.
But, so far, some high
streets have avoided major
damage. Demand for these locations remains healthy from
the world’s top retailers for
branding purposes, even if
they don’t generate high sales.
STERLING ORGANIZATION
LVMH Pays High Price on Los Angeles’s Rodeo Drive
The building at 456 N. Rodeo Drive sold for $110 million.
FEATURED SPEAKERS MAY 8, 9, 10 NEW YORK, NY
STEWART BUTTERFIELD NATHAN MYHRVOLD
Co-Founder and CEO, Slack
Founder and CEO, INTELLECTUAL VENTURES
MORGAN DEBAUN CORTNEY NOVOGRATZ
LARRY GAGOSIAN MARCELA SAPONE
GARRY KASPAROV DAN SCHULMAN
Designer, The Novogratz
Founder and CEO, Blavity, Inc.
Co-Founder and CEO, Hello, Alfred
Founder and Owner, Gagosian Galleries
Author and Former World Chess Champion
President and CEO, PayPal
MAYE MUSK TINA TCHEN
Partner, Buckley Sander; a leader of
the Time’s Up Legal Defense Fund
Model, Dietician, Mother, Grandmother, and Entrepreneur
...AND 75 MORE
Buy Tickets: FOEFESTIVAL.WSJ.COM
Festival Proudly Sponsored By:
Festival Day Proudly Sponsored By:
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© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6435
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24103.11 s 254.69, or 1.07%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 25.46 21.15
P/E estimate *
16.24 17.72
Dividend yield
2.22
2.35
All-time high 26616.71, 01/26/18
Current divisor 0.14523396877348
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
Nasdaq Composite Index
Last
2640.87 s 35.87, or 1.38%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio * 24.51 24.52
P/E estimate *
16.85 18.27
Dividend yield
1.95
1.97
All-time high 2872.87, 01/26/18
Last Year ago
7063.44 s 114.22, or 1.64%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 25.21
25.97
P/E estimate *
19.97
20.34
Dividend yield
1.04
1.12
All-time high: 7588.32, 03/12/18
26800
2900
7500
26000
2825
7300
25200
2750
7100
24400
2675
6900
65-day moving average
6700
2600
23600
65-day moving average
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
24314.30 23928.13 24103.11 254.69
Industrial Average
1.07
Transportation Avg 10480.51 10223.88 10396.56 208.37
695.62
Utility Average
Total Stock Market
Barron's 400
690.23
2.05
4.00
0.58
27565.28 27077.18 27383.00 363.98
716.33
705.26
9.93
711.59
1.35
Nasdaq Stock Market
Nasdaq Composite
7120.46
Nasdaq 100
6640.76
692.63
6935.78
6435.67
1.42
7063.44 114.22
6581.13 120.32
1.64
1.86
26616.71 20404.49
16.3
-2.5
10.8
11373.38
8783.74
13.6
-2.0
6.1
774.47
647.90
-0.4
-4.2
6.1
29630.47 24125.20
757.37
610.89
11.6
13.3
-1.0
0.1
8.2
8.1
7588.32
7131.12
5805.15
5353.59
2.3
2.9
19.4
21.0
2659.07
2609.72
2640.87
35.87
1.38
2872.87
2328.95
11.5
-1.2
8.6
MidCap 400
SmallCap 600
1888.61
945.00
1860.47
933.28
1878.77
938.46
24.99
9.16
1.35
0.99
1995.23
979.57
1681.04
815.62
9.3
11.4
-1.1
0.2
7.6
9.5
Other Indexes
Russell 2000
1540.02
1513.31
1529.43
16.40
1.08
1610.71
1345.24
10.6
-0.4
7.2
12512.00 12356.08 12452.06 143.16
1.16
13637.02 11324.53
8.1
-2.8
4.6
5.2
-2.8
2.5
NYSE Composite
549.44
Value Line
540.16
546.67
6.51
1.21
589.69
503.24
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.
Volume, Advancers, Decliners
Company
Volume
(000)
Symbol
SPDR S&P 500
Last
Net chg
19,859.1 262.61
SPY
6,075.0
GE
General Electric
PwrShrs QQQ Tr Series 1 QQQ
13.50
0.02
-0.36
-0.22 160.50 158.26
52.10
-0.04
-0.08
52.15
48.41 0.1300
0.27
48.41
48.07
Intel
3,745.6
51.81
-0.27
-0.52
52.16
50.80
3,582.6
42.89
...
unch.
42.92
42.19
3,536.5
21.98
...
unch.
21.98
21.87
INTC
CSCO
Cisco Systems
VanEck Vectors Gold Miner GDX
Senseonics Holdings
SENS
108.0
3.41
0.41
13.67
3.70
3.03
Quorum Health
QHC
285.4
8.78
0.60
7.30
8.78
8.07
UnitedHealth Group
UNH
445.2 218.61
4.61
2.15 220.87 213.99
VS 2x VIX Short Term
TVIX
1,063.1
9.59
0.17
1.80
9.74
9.42
134.7
4.24
0.07
1.68
4.24
4.17
CBL Assocs Properties CBL
4504.23
6.67
0.15
4939.86
3449.61
26.6
6.7
3.8
528.95
2.01
0.38
593.12
498.46
3.6
-2.9
-2.7
...And losers
KBW Bank
SYNNEX
SNX
79.8 106.15 -12.25
Tesla
TSLA
89.1 256.50
-9.3 -10.6
Chegg Inc.
CHGG
199.2
6.1
80.9
Under Armour Cl C
UA
Under Armour A
UAA
1.37
1.30
116.52
88.02
14.5
-0.2
14.3
1.48
1.85
93.26
76.42
-2.6
-4.9
PHLX§ Oil Service
81.12
6.2
136.36
132.87
135.69
3.34
2.53
171.55
117.79
-19.6
1340.66
23.05
1300.08
19.60
1328.90
19.97
2.24
1445.90
37.32
960.01
9.14
31.3
73.1
PHLX§ Semiconductor
Cboe Volatility
29.08
-2.90 -12.68
Nasdaq PHLX
Region/Country Index
-3.62 266.26 256.10
20.00
-0.66
-3.19
20.66
20.00
108.5
13.94
-0.41
-2.86
14.43
13.66
160.0
15.98
-0.37
-2.26
16.55
15.59
Close
Percentage Gainers...
Net chg
3021.23
391.74
262.29
18.31
3.15
0.69
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
634.00
Sao Paulo Bovespa 85365.56
S&P/TSX Comp
15367.29
S&P/BMV IPC
46124.85
Santiago IPSA
4173.22
8.54
1491.43
197.35
…
56.93
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
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
24.2
9.8
The Global Dow
DJ Global Index
DJ Global ex U.S.
370.87
373.99
3857.10
888.52
5167.30
12096.73
1436.22
22411.15
529.52
1246.98
55474.52
9600.40
559.67
8740.97
114844.56
7056.61
19460.47
S&P/ASX 200
5759.40
Shanghai Composite 3160.53
Hang Seng
30093.38
S&P BSE Sensex
32968.68
Nikkei Stock Avg
21159.08
Straits Times
3427.97
Kospi
2436.37
Weighted
10845.92
SET
1766.92
1.61
2.63
4.73
…
36.86
156.02
1.79
79.79
2.52
20.18
710.55
45.40
7.03
–15.15
715.26
11.87
103.88
Latest
% chg
YTD
% chg
0.61
0.81
0.27
–2.1
–1.4
–1.7
1.36 –1.3
1.78 11.7
1.30 –5.2
Closed
–6.5
1.38 –0.9
0.44
0.71
0.12
Closed
0.72
1.31
0.12
0.36
0.48
1.64
1.30
0.48
1.27
–0.17
0.63
0.17
0.54
–30.10 –0.52
1.22
38.24
0.24
70.85
Closed
…
0.61
127.77
1.34
45.19
0.71
17.08
–0.18
–19.74
–18.07 –1.01
–4.7
–3.0
–3.0
–4.2
–2.7
–6.4
–4.9
2.6
–2.8
8.0
–6.8
–4.4
–1.6
–6.8
–0.4
–8.2
–6.1
–5.0
–4.4
0.6
–3.2
–7.1
0.7
–1.3
1.9
0.8
Sources: SIX Financial Information; WSJ Market Data Group
Company
Symbol
Galectin Therapeutics
NTN Buzztime
Unit Corp
Zion Oil Gas
Titan Machinery
GALT
Avid Bioservices
Movado Group
SharpSpring
Biofrontera ADR
Spectrum Brands Holdings
CDMO
HRG Group
VirTra
CarGurus Cl A
Foamix Pharmaceuticals
NeoPhotonics
HRG
Latest Session
Close Net chg % chg
52-Week
Low
% chg
High
6.74 1.28
8.85 3.01
26.82 15.29
6.90 1.09
25.09 11.68
133.5
-19.3
-16.1
290.2
60.2
LongFin Cl A
Zosano Pharma
Forward Pharma ADR
AgEagle Aerial Systems
Remark Holdings
LFIN
2.92 0.44
MOV
38.40 5.20
SHSP
6.37 0.85
BFRA
16.52 2.20
SPB
103.70 13.58
17.74
15.66
15.40
15.36
15.07
5.78 2.24
42.25 20.50
6.95 3.07
17.98 11.25
146.09 89.37
-37.9
58.0
40.0
...
-26.0
Acxiom
Aemetis
MediciNova
Internet Gold-Golden
VS 2x VIX Short Term
ACXM
16.49
6.30
38.47
5.13
6.85
14.83
14.55
14.32
14.00
13.98
20.17 14.22
...
...
39.94 25.85
7.45 4.03
9.78 4.56
-14.0
57.5
...
5.3
-24.7
iQIYI ADR
Sunlands Online Educ ADR
Akcea Therapeutics
Quorum Health
Nova Lifestyle
IQ
UNT
ZN
TITN
VTSI
CARG
FOMX
NPTN
2.13
0.80
4.82
0.63
0.84
Most Active Stocks
Company
Symbol
Neovasc
SPDR S&P 500
iShares MSCI Emg Markets
iQIYI ADR
General Electric
NVCN
PwrShrs QQQ Tr Series 1
Bank of America
Facebook Cl A
Finl Select Sector SPDR
Micron Technology
QQQ
SPY
EEM
IQ
GE
BAC
FB
XLF
MU
Volume % chg from Latest Session
(000) 65-day avg Close % chg
233,601
104,182
80,144
79,517
68,417
1186.8
-9.2
9.7
...
-26.4
63,232
62,308
57,886
56,932
56,384
36.1
-14.8
88.3
-8.6
10.4
52-Week
High
Low
Five-year ARM, Rate
5-year adjustablerate mortgage
t (ARM)
4.00%
3.00
1.00
Family Federal Savings
Fitchburg, MA
3.25%
978-353-0000
East Cambridge Savings Bank
3.38%
Cambridge, MA
866-354-3272
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.50-1.75 1.25-1.50
Prime rate*
4.75
4.75
Libor, 3-month
2.29
2.31
Money market, annual yield
0.35
0.35
Five-year CD, annual yield
1.65
1.66
30-year mortgage, fixed†
4.49
4.40
15-year mortgage, fixed†
3.95
3.87
Jumbo mortgages, $424,100-plus† 4.66
4.78
Five-year adj mortgage (ARM)† 4.12
4.50
New-car loan, 48-month
3.62
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
1.29
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
Thursday
t
1.50
4.75
2.31
0.36
1.66
4.49
3.95
4.96
4.50
3.67
1.50
1.50
2.04
-0.07
0.17
0.50
0.62
0.31
0.75
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
One year ago
1
3 6
month(s)
1 2 3 5 710
years
maturity
AKCA
QHC
NVFY
Nasdaq
NYSE Arca
Total volume*2,546,897,725 296,547,294
Adv. volume*1,733,663,533 250,236,103
Decl. volume* 780,311,509 41,556,483
Issues traded
3,092
1,358
Advances
2,047
1,147
Declines
916
196
Unchanged
129
15
New highs
45
5
New lows
80
11
Closing tick
437
3
Closing Arms†
1.01
1.05
Block trades*
11,236
1,394
* 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.
CMCT
5
1.50
0
0.75
–5
0.00
–10
30
17.26 -16.45 -48.80
5.04 -4.13 -45.04
2.17 -0.61 -21.94
4.33 -1.14 -20.84
5.68 -1.45 -20.34
142.82
41.60
30.00
28.75
15.10
52-Week
Low
% chg
4.69
3.61
2.02
2.75
1.93
...
-86.9
-91.9
-53.2
89.3
-18.2
33.9
69.8
-47.7
-72.2
22.71
1.70
10.22
5.35
9.42
-5.34
-0.30
-1.74
-0.87
-1.50
-19.04
-15.00
-14.55
-14.04
-13.74
32.93 18.60
3.12 0.45
14.50 4.40
11.51 5.00
47.19 4.66
15.55
8.30
25.61
8.18
2.16
-2.45
-1.27
-3.75
-1.19
-0.31
-13.61
-13.27
-12.77
-12.70
-12.55
...
14.08
33.99
9.73
3.10
...
...
...
53.2
27.8
...
8.25
8.10
2.54
1.06
ACXM
MOSC
FFBC
CSA
MOV
BYBK
XTL
FTSD
Volume % chg from Latest Session
(000) 65-day avg Close % chg
324
17,429
256
6,901
109
3298
2909
2236
1754
1533
6.80 21.93
22.71 -19.04
9.75
...
29.35 2.80
45.42 1.34
143
1,281
95
344
87
1233
1198
1174
1119
1116
12.65
38.40
13.35
68.88
95.24
52-Week
High
Low
8.85 3.01
32.93 18.60
9.90 9.49
29.65 22.80
49.00 40.36
2.85
15.66
...
1.35
0.11
20.45
42.25
14.85
74.86
99.69
11.75
20.50
6.75
65.10
93.46
CURRENCIES & COMMODITIES
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
15%
2.25
High
* Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
10
Latest Session
Close Net chg % chg
Ranked by change from 65-day average*
CIM Commerical Trust
Movado Group
Bay Bancorp
SPDR S&P Telecom
Franklin Short Dur US
Euro
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Yen
Vietnam dong
Argentina peso
.0497 20.1347 8.2
Brazil real
.3025 3.3060 –0.2
Canada dollar
.7761 1.2885 2.5
Chile peso
.001656 603.90 –1.9
Ecuador US dollar
1
1 unch
Mexico peso
.0550 18.1872 –7.5
Uruguay peso
.03522 28.3900 –1.4
Venezuela b. fuerte .00002049600.0001 479504.7
Europe
s
WSJ Dollar index
2017
2018
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1440.808
2.604
2.668
2.736
1.818
2.741
3.703
3.130
6.265
3.320
2.491
2.832
3.785
3.180
6.246
3.350
2.502
2.943
3.814
3.230
6.319
3.410
2.520
2.058 –0.626 –0.437
2.879 2.440 2.202
2.380 1.183 1.237
4.948 2.743 3.495
2.660 0.860 1.184
1.736 2.008 1.820
n.a.
n.a.
6.062
n.a.
n.a.
0.583 0.294
n.a.
n.a.
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7677 1.3026
China yuan
.1590 6.2901
Hong Kong dollar
.1274 7.8486
India rupee
.01538 65.035
Indonesia rupiah .0000727 13746
Japan yen
.009395 106.44
Kazakhstan tenge .003132 319.24
Macau pataca
.1237 8.0850
Malaysia ringgit
.2586 3.8675
New Zealand dollar
.7234 1.3824
Pakistan rupee
.00866 115.500
Philippines peso
.0192 52.217
Singapore dollar
.7627 1.3111
South Korea won .0009407 1063.08
Sri Lanka rupee
.0064226 155.70
Taiwan dollar
.03434 29.118
Thailand baht
.03199 31.260
Commodities
1.7
–3.3
0.5
1.8
1.9
–5.6
–4.0
0.5
–4.8
–1.9
4.4
4.5
–2.0
–0.4
1.4
–1.9
–4.1
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
10-yr Treasury, Ryan ALM 1689.370
DJ Corporate
372.895
Aggregate, Barclays Capital 1916.400
High Yield 100, Merrill Lynch 2825.614
Fixed-Rate MBS, Barclays 1964.970
Muni Master, Merrill
516.274
EMBI Global, J.P. Morgan
STG
175.21 130.38
33.05 22.07
195.32 138.81
30.33 22.89
63.42 26.36
Corporate Borrowing Rates and Yields
Treasury, Ryan ALM
TVIX
1.83
2.04
4.42
1.36
1.26
160.13
29.99
159.79
27.57
52.14
Forex Race
3.00
Close
IGLD
NTN
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Bond total return index
MNOV
Symbol
Country/currency
3.75%
3.00%
800-826-7490
Fall River Five Cents Savings Bank
3.13%
Fall River, MA
800-679-4420
0.00
AM J J A S ON D J FM
2017
2018
Langley FCU
Newport News, VA
3.00%
877-369-3331
AMTX
NTN Buzztime
Acxiom
Mosaic Acquisition Cl A
First Finl Bancorp OH
VicSh US SC Vol Wtd
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
4.12%
2.00
t
5-year Treasury
note yield
Foxboro Federal Savings
Foxboro, MA
MARK
Company
Track the Markets
notes and bonds
Bankrate.com avg†:
UAVS
1.89
0.05
286.63 232.51
52.08 38.71
...
...
30.54 12.73
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
A consumer rate against its
benchmark over the past year
FWP
0.06 -49.17
263.15 1.28
48.28 2.09
15.55 -13.61
13.48 -1.46
s
Selected rates
ZSAN
Volume Movers
s
U.S. consumer rates
Symbol
25.40
21.93
21.08
20.20
19.29
Benchmark
Yields
Treasury yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
0.96
1.22
3.44
0.80
3.81
4.74
6.80
19.76
4.76
23.56
NTN
Total volume* 995,464,507 11,600,326
Adv. volume* 795,482,620 6,763,314
Decl. volume* 190,579,076 4,454,186
Issues traded
3,073
330
Advances
2,332
196
Declines
648
120
Unchanged
93
14
New highs
33
3
New lows
59
15
Closing tick
217
2
Closing Arms†
0.83
1.19
Block trades*
6,933
167
Percentage Losers
CREDIT MARKETS
Interest rate
-10.35 121.00 106.00
-9.63
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
51.84
Percentage gainers…
525.82
106.50
13.45
4,092.3
4466.14
79.70
13.50
4,436.6
MU
Micron Technology
531.34
105.04
0.15
iShares MSCI Emg Markets EEM
4554.30
81.21
Low
-0.21 264.28 259.84
5,415.3 159.77
NYSE Arca Biotech
107.22
After Hours
% chg
High
-0.54
NYSE Arca Pharma
PHLX§ Gold/Silver
NYSE NYSE Amer.
Most-active issues in late trading
13.0
14.9
S&P
500 Index
Late Trading
.00004384
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
22810
0.4
.04844 20.645
.1650 6.0603
1.2301 .8130
.003939 253.86
.010128 98.74
.1275 7.8414
.2922 3.4222
.01746 57.284
.1196 8.3598
1.0456 .9564
.2537 3.9422
.0378 26.4875
1.4018 .7134
–3.0
–2.3
–2.4
–2.0
–4.6
–4.5
–1.6
–0.7
2.1
–1.8
3.9
–5.9
–3.6
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 17.6315 –0.8
.2852 3.5058 0.8
3.3362 .2997 –0.6
2.5974 .3850 0.01
.2746 3.642 –0.2
.2667 3.7500 –0.01
.0845 11.8393 –4.2
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 83.84 –0.11–0.13 –2.49
Sources: Tullett Prebon, WSJ Market Data Group
Thursday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
631.07
5.34
195.36
64.94
2.733
1322.80
1.06
0.56
0.035
-1.40
0.85
% Chg
YTD
% chg
645.87
532.01
11.34
0.91
0.55 200.52
66.14
0.87
3.63
1.30
-0.11 1362.40
166.50
42.53
2.55
1208.60
5.31
28.98
-14.35
6.25
0.77
7.48
-7.45
1.26
Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com
.
THE WALL STREET JOURNAL.
B8 | Friday, March 30, 2018
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
2.9900
3.0360
2.9900
3.0190 0.0250
April
May
3.0010
3.0490
2.9945
3.0255 0.0235
Gold (CMX)-100 troy oz.; $ per troy oz.
April
1323.60 1327.10
1321.70 1322.80 –1.40
June
1329.30 1332.60
1325.40 1327.30 –2.70
Aug
1334.60 1338.50
1331.60 1333.30 –2.80
Oct
1343.30 1343.30
1338.40 1339.30 –2.70
Dec
1349.70 1351.20
1344.60 1345.80 –2.80
Dec'19
1384.30 1384.30
1384.10 1384.90 –2.90
Palladium (NYM) - 50 troy oz.; $ per troy oz.
964.00
968.15
t 934.40
943.80 –19.40
June
Sept
960.50
960.50
t 933.00
938.65 –19.55
Platinum (NYM)-50 troy oz.; $ per troy oz.
938.00
938.00
t 928.00
927.30 –7.40
April
July
942.70
946.60
t 931.90
932.60 –8.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.250
16.250
16.210
16.223 0.018
April
May
16.265
16.340
16.195
16.268 0.015
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
64.68
65.26
64.16
64.94
0.56
May
June
64.64
65.19
64.12
64.87
0.52
July
64.31
64.88
63.83
64.54
0.48
Sept
63.26
63.81
62.86
63.48
0.41
Dec
61.76
62.22
61.31
61.91
0.32
Dec'19
57.29
57.61
57.00
57.37
0.09
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
2.0195
2.0355
1.9988
2.0284 .0136
April
May
2.0185
2.0363
1.9956
2.0210 .0071
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
2.0154
2.0292
2.0052
2.0179 .0063
April
May
2.0249
2.0397
2.0098
2.0206 .0014
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.700
2.764
2.698
2.733
.035
May
June
2.753
2.810
2.752
2.778
.027
July
2.809
2.862
2.807
2.832
.024
Sept
2.810
2.857
2.808
2.833
.024
Oct
2.825
2.871
2.822
2.846
.024
Jan'19
3.074
3.113
3.073
3.095
.021
Settle
Open
interest
Chg
Agriculture Futures
Open
interest
Corn (CBT)-5,000 bu.; cents per bu.
2,788
150,123
May
July
373.75
382.75
389.25
397.50
373.75
382.00
387.75
396.25
May
July
222.75
230.50
228.25
236.25
221.50
230.25
225.00
233.75
May
July
1019.50
1029.25
1050.75
1060.75
1012.50
1023.00
1044.75
1055.50
26.75 341,978
26.75 256,100
May
July
371.80
373.70
386.20
388.00
367.80
370.20
384.00
386.30
12.70 188,568
12.60 125,306
May
July
31.62
31.88
32.15
32.40
31.42
31.67
31.87
32.13
.25 231,378
.25 126,158
May
July
1242.50
1261.50
1247.00
1261.50
1233.50
1252.00
1235.50
1252.50
May
July
447.50
465.00
455.75
472.50
441.50
459.00
451.00
468.50
Oats (CBT)-5,000 bu.; cents per bu.
6,397
380,815
52,927
7,314
47,067
3,451
t
Soybeans (CBT)-5,000 bu.; cents per bu.
Soybean Meal (CBT)-100 tons; $ per ton.
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
22,423
1,292
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
599
73,282
Wheat (CBT)-5,000 bu.; cents per bu.
361
154,870
Wheat (KC)-5,000 bu.; cents per bu.
496,529
364,465
155,872
178,965
255,020
135,964
461.25
482.50
May
July
471.50
490.75
456.00
475.50
t 575.00
578.50
t 583.25
586.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
March
136.050 136.175
135.500 135.600
May
138.700 139.925
t 134.000 134.025
Cattle-Live (CME)-40,000 lbs.; cents per lb.
April
116.200 116.975
t 113.150 113.750
June
105.750 106.925
t 102.575 102.575
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
April
57.050
57.500
56.900
57.250
June
76.400
76.750
75.475
76.550
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
May
510.90
517.10
510.90
515.70
July
499.50
506.00
499.40
505.40
589.25
597.00
4,277
136,045
6,403
167,627
400,613
98,158
158,313
100,185
132,063
71,952
3.25
3.25
592.00
600.00
4,598
1,272
–9.00
–9.00
5,637
1,426
6.25 106,394
6.25 84,010
–.375
–4.475
16.2800
12044
Other metals
LBMA Platinum Price PM
*939.0
Platinum,Engelhard industrial
939.0
Platinum,Engelhard fabricated
1039.0
Palladium,Engelhard industrial
975.0
Palladium,Engelhard fabricated
1075.0
Aluminum, LME, $ per metric ton
*2009.0
Copper,Comex spot
3.0190
Iron Ore, 62% Fe CFR China-s
63.1
Shredded Scrap, US Midwest-s,m
366
Steel, HRC USA, FOB Midwest Mill-s
870
Metals
Fibers and Textiles
Gold, per troy oz
1326.40
1425.88
1323.85
1469.47
*1341.05
*1332.45
1376.23
1389.47
1389.47
1603.50
1300.10
1389.47
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.2800
19.5360
16.3220
20.4030
£11.5800
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6100
0.8046
*91.30
65.000
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
Grains and Feeds
n.a.
87
3.5250
108.8
520.0
320
98
295
2.6250
25.50
8.3088
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
U.S. consumer price index
0.45
0.45
248.991
255.783
All items
Core
2.2
1.8
International rates
Latest
Week
ago
52-Week
High
Low
Prime rates
4.75 4.75 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
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
2,669
20,487
March
June
114-225 114-237
114-102 114-160
114-225
114-095
114-235
114-147
3.2
6,935
3.5 3,382,887
June
106-090 106-102
106-087
106-097
.5 1,907,325
… 121,786
… 361,784
5,358
875
387.50
9.9150
7.2850
4.5200
4.5725
5.5000
195.81
185.60
1.0613
2.2150
144.00
153.00
69.00
2834
1.1873
1.3881
2.6550
15.20
n.a.
57.32
n.a.
0.8599
121.00
162.50
Fats and Oils
—52-WEEK—
High Low
28.0000
0.2200
n.a.
0.3022
0.2475
n.a.
2.05
0.76
Discount
2.25
2.25
1.50
1.7100
1.8125
1.6500
1.7000
1.7200
1.6800
1.8125
1.6000
1.6700
1.6900
1.7100
1.9000
1.6500
1.7000
1.7200
0.8400
1.0625
0.7000
0.8100
0.8200
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
9.37
101.29
52.63
67.41
27.57
99.48
81.40
74.29
107.24
103.80
120.62
65.88
58.40
63.04
265.37
187.57
77.01
60.46
107.25
95.12
73.69
51.93
105.92
50.93
12.73
117.39
85.64
112.82
104.64
71.70
44.88
69.68
65.19
48.28
43.35
60.68
106.74
108.93
136.09
146.86
119.96
190.57
151.83
121.88
156.34
206.44
86.43
218.33
155.07
1.30 –13.2
2.6
1.40
0.69 –7.5
2.11 –6.7
1.36 –1.2
1.27 –1.5
0.76 –1.5
1.46 –1.8
0.17 –1.8
0.04 –0.7
0.11 –1.3
1.10 –0.3
2.6
2.12
1.29 –0.1
1.43 –1.3
1.38 –1.2
0.3
0.94
1.41 –1.1
0.29 –1.9
1.04 –3.5
1.0
0.74
0.99 –1.6
2.7
1.63
0.2
0.02
1.8
...
0.45 –3.4
–1.9
0.34
0.53 –2.8
0.11 –1.8
1.34 –0.5
3.08 11.0
0.91 –0.9
1.1
1.04
2.5
2.09
0.95 –0.1
1.3
1.27
0.72 –0.0
0.02 –1.6
1.0
1.57
1.43 –1.2
1.24 –3.5
2.1
1.30
1.01 –0.4
0.73 –3.1
1.39 –1.2
1.33 –0.8
1.24 –3.1
1.2
1.50
1.5
1.57
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
March
April
98.500
98.325
98.500
98.325
98.498
98.320
98.498
98.325
June
94.875
94.953
94.688
94.906
April
May
98.1075
98.1000
98.1075
98.1000
98.1075
98.1000
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
1.705 1.720 1.720 0.695
1.760 1.780 1.780 0.780
1.895 1.950 1.950 0.905
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
BKLN
JNK
GLD
SCHF
SCHB
SCHD
SCHX
DIA
MDY
SPY
SDY
XLK
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
DXJ
Week
Latest ago
52-Week
high
low
April
June
Dec
Dec'19
28,160
98.1025 –.0075
98.0925
…
4,096
1,419
97.7250
97.7150
97.5150
97.2150
97.7250
97.7150
97.5200
97.2300
97.7075
97.6900
97.4900
97.2000
97.7100
97.7000
97.5050
97.2150
–.0150
–.0150
–.0150
–.0050
301,599
1,752,787
2,070,546
2,162,214
Settle
Chg
Open
interest
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
April
June
.9373
.9409
.9416
.9457
.9367
.9398
.9406
.9444
.0038
864
.0038 149,409
April
June
.7744
.7751
.7770
.7786
.7736
.7738
.7754
.7763
.0006
225
.0007 119,105
April
June
1.4080
1.4125
1.4091
1.4138
1.4021
1.4054
1.4022 –.0070
1,156
1.4058 –.0069 173,437
June
1.0518
1.0540
1.0499
1.0514 –.0118
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
47,633
t
.7649
.7675 .0013
1,388
t
.7647
.7676 .0013
630
t
.7644
.7676 .0013 107,611
t
.7652
.7681 .0013
754
t
.7661
.7687 .0012
371
Mexican Peso (CME)-MXN 500,000; $ per MXN
June
.05402
.05439 s
.05389
.05431 .00022 203,791
Euro (CME)-€125,000; $ per €
April
1.2322
1.2345
1.2299
1.2302 –.0023
2,050
June
1.2380
1.2404
1.2352
1.2359 –.0023 492,471
.7654
.7656
.7662
.7660
.7661
April
May
June
Sept
Dec
.7685
.7688
.7691
.7691
.7687
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
June
Sept
23889
23950
24288
24318
23797
23839
24147
24178
June
2610.40
2658.50
2601.60
2643.00
35.40
June
Sept
2606.25
2615.00
2659.50
2664.00
2601.00
2606.00
2643.00
2647.75
35.50 2,918,961
35.50 62,020
June
1859.50
1890.90
1852.70
1883.10
June
Sept
6490.8
6518.0
6653.8
6682.0
6443.8
6477.0
6594.0
6627.0
June
1520.40
1543.50
1514.60
1532.10
14.80
June
1459.10
1473.10
1459.10
1467.80
22.30
36
June
Sept
89.73
89.27
89.84
89.40
89.58
89.18
89.81
89.39
.09
.10
30,787
967
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
287 103,579
288
635
26.90
52,423
78,385
116.8 238,007
118.5
6,613
8,716
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
1916.40
-1.5
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.130 2.380 3.230
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1964.97
-1.2
Mortgage-Backed
1928.90
-1.3
Ginnie Mae (GNMA) 3.320 2.630 3.410
3.320 2.660 3.410
2734.54
-2.3
U.S. Corporate
3.760 3.030 3.860
1152.92
-1.1
Fannie mae (FNMA) 3.320 2.670 3.410
2580.72
-1.5
Intermediate
3.470 2.530 3.550
1775.79
-1.2
Freddie Mac (FHLMC) 3.330 2.680 3.420
Long term
4.390 3.990 4.530
516.27
-1.2
Muni Master
2.491 1.736 2.520
558.08
-1.8
Double-A-rated
3.230 2.470 3.320
358.89
-1.8
7-12 year
2.587 1.744 2.635
706.63
-2.1
Triple-B-rated
4.030 3.340 4.120
405.73
-1.5
12-22 year
2.853 2.213 2.905
393.87
-1.6
22-plus year
3.233 2.716 3.296
3779.02 -4.0
High Yield Bonds Merrill Lynch
413.77
-0.9
High Yield Constrained 6.403 5.373 6.417
Global Government J.P. Morgan†
Triple-C-rated
10.789 9.640 11.091
544.62
0.1
Global Government
1.480 1.300 1.650
2825.61
-1.2
High Yield 100
6.265 4.948 6.319
757.93
0.4
Canada
2.110 1.570 2.340
376.21
-0.7
Global High Yield Constrained 5.742 4.934 5.755
n.a.
304.87
-0.5
Europe High Yield Constrained 2.844 1.897 3.145
716.19
0.5
422.39
n.a.
EMU§
n.a. n.a. n.a.
0.8
France
0.820 0.690 1.090
508.49
0.2
Germany
0.520 0.210 0.740
1629.21
-0.5
U.S Agency
2.550 1.690 2.650
290.13
0.5
Japan
0.370 0.340 0.460
1457.17
-0.4
10-20 years
2.450 1.490 2.530
562.25
0.3
Netherlands
0.610 0.390 0.830
3335.61
-1.6
20-plus years
3.150 2.730 3.400
933.29
0.3
U.K.
1.530 1.340 1.830
2424.61
-1.6
Yankee
3.430 2.610 3.500
n.a.
U.S Agency Bloomberg Barclays
n.a.
Emerging Markets **
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
n.a. n.a. n.a.
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
109.34
37.56
110.37
113.05
83.56
103.19
122.95
101.55
160.13
23.13
35.85
125.79
33.71
63.79
49.03
63.08
241.40
341.73
263.15
91.20
65.42
21.98
171.00
129.42
163.95
101.05
44.25
46.98
58.15
69.47
54.37
141.88
153.53
82.49
81.77
84.84
121.21
154.21
109.39
75.47
242.08
78.44
78.43
146.92
79.93
54.73
56.55
135.72
73.63
103.18
56.01
1.17
0.19
0.05
0.21
0.04
0.20
1.44
–0.02
1.83
0.22
0.22
0.05
1.11
1.30
1.26
1.40
1.31
1.38
1.28
0.94
1.98
1.48
2.14
1.07
1.34
1.26
1.10
1.82
0.69
1.28
1.17
1.63
0.81
1.18
0.23
0.31
1.45
1.37
1.26
–0.12
1.44
0.05
0.11
1.22
0.25
0.11
1.13
1.37
1.24
1.22
0.56
–4.3
–1.3
0.1
–0.9
–0.3
–2.3
1.9
–0.0
2.8
0.4
–2.4
1.7
–1.1
–1.1
–4.2
–1.1
–2.4
–1.1
–1.4
–3.5
2.3
–5.4
3.8
–2.5
1.9
–1.0
–1.4
2.3
–1.7
–0.8
–0.6
0.9
–0.4
–3.7
–2.5
–2.9
–1.1
–0.4
–2.0
–9.1
–1.3
–0.8
–1.1
–0.6
–2.0
0.7
–0.5
–1.1
–0.8
–3.0
–5.6
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
4.500
Australia 2
2.250
10
0.000
0.500
3.50
3.50
3.50
2.75
2.25
2.24
90 days
2.25
0.95
1.400
1.400
1.88313
2.31175
2.45240
2.66263
1.87150
2.28557
2.44730
2.67700
1.88688
2.31175
2.45380
2.67700
0.98278
1.14761
1.39072
1.69511
One month
Three month
Six month
One year
-0.407
-0.371
-0.325
-0.246
-0.409
-0.386
-0.330
-0.251
-0.391
-0.356
-0.249
-0.121
-0.420
-0.389
-0.339
-0.263
Euro interbank offered rate (Euribor)
-0.372
-0.328
-0.271
-0.190
One month
Three month
Six month
One year
Latest
-0.371
-0.329
-0.271
-0.191
Value
Traded
-0.366
-0.325
-0.241
-0.109
-0.375
-0.332
-0.279
-0.194
52-Week
High
Low
DTCC GCF Repo Index
2.068 52.400 2.068 0.791
1.971 115.350 1.971 0.794
Treasury
MBS
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Mar
Treasury Apr
Treasury May
98.345 unch. 2077 1.655
98.230 unch. 1848 1.770
98.230 0.005 835 1.770
Weekly survey
Latest
Week ago Year ago
Freddie Mac
30-year fixed
15-year fixed
Five-year ARM
4.44
3.90
3.66
4.45
3.91
3.68
4.14
3.39
3.18
Notes on data:
U.S. prime rate is the base rate on corporate
loans posted by at least 70% of the 10 largest
U.S. banks, and is effective March 22, 2017.
Other prime rates aren’t directly comparable;
lending practices vary widely by location;
Discount rate is effective March 22, 2017. DTCC
GCF Repo Index is Depository Trust & Clearing
Corp.'s weighted average for overnight trades in
applicable CUSIPs. Value traded is in billions of
U.S. dollars. Federal-funds rates are Tullett
Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe
US.
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
1
l
2.024 s
2.608 s
l
l
Germany 2 -0.610 t
10 0.498 t
l
l
l
Italy 2 -0.326 t
10 1.792 t
l
Japan 2 -0.137 s
10 0.041 s
l
Spain 2 -0.350 t
10 1.163 t
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
l
l
Libor
One month
Three month
Six month
One year
0
France 2 -0.499 t
10 0.721 t
2.000
0.100
Latest(l)-2 -1
U.S. 2 2.270 t
10 2.742 t
2.250
2.750
0.100
Call money
Euro Libor
Closing Chg YTD
Symbol Price (%) (%)
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdRealEst
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrJapanHdg
.172
1 Month Libor (CME)-$3,000,000; pts of 100%
0.050
Commercial paper (AA financial)
Largest 100 exchange-traded funds, latest session
ETF
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
0.750
4.012 4.058 4.109 3.253
4.041 4.086 4.139 3.281
30 days
60 days
Other short-term rates
Treasury bill auction
ETF
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
0.000
Fannie Mae
Federal funds
Effective rate
High
Low
Bid
Offer
—52-WEEK—
High Low
30-year mortgage yields
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Thursday, March 29, 2018
Closing Chg YTD
Symbol Price (%) (%)
Week
Latest ago
Secondary market
U.S. government rates
4 weeks
13 weeks
26 weeks
Interest Rate Futures
7.5 3,510,467
7.0
504
8.60
9.40
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
9,362
2,068
121-045
120-285
March 29, 2018
1.48
2.25
…
.35
120-255
120-170
Food
Overnight repurchase
2.05
.72 112,279
.62 73,521
120-260 121-060
120-170 120-285
22,521
98,944
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
3,218
2,669
Contract
High hilo
Low
Open
Global Government Bonds: Mapping Yields
Week
Latest ago
U.S.
.05
–.04
June
Sept
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.
Chg From (%)
Jan. '18 Feb. '17
.14 400,867
.12 255,741
32,185
13,439
Thursday
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Feb. index
level
.40 138,986
.40 60,076
24.0 793,058
24.0
80
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 3/28
Source: WSJ Market Data Group
Inflation
–41 107,250
–45 76,704
146-200
145-210
.325
–.075
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
4,231
3,343
145-190
145-190
–2.250 40,416
–3.000 159,567
Thursday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
…
–.06
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Eurodollar (CME)-$1,000,000; pts of 100%
Thursday
0.8009
0.9094
2.750
2.670
2.770
2.120
1.910
2.420
2.570
63.000
12.400
Milk (CME)-200,000 lbs., cents per lb.
14.24
14.24
14.23
14.23
March
May
14.35
14.36
14.21
14.27
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,581
2,607
2,545
2,556
May
July
2,613
2,635
2,573
2,584
Coffee (ICE-US)-37,500 lbs.; cents per lb.
117.80
118.75
117.40
118.15
May
July
119.80
120.75
119.45
120.20
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
12.25
12.38
12.19
12.35
May
July
12.38
12.49
12.33
12.46
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
24.45
24.50
t
24.45
24.50
May
July
24.92
25.05
t
24.90
24.98
Cotton (ICE-US)-50,000 lbs.; cents per lb.
80.74
82.20
80.68
81.46
May
July
81.18
82.51
81.08
81.80
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
140.90
141.30
139.85
141.10
May
July
140.90
141.50
140.00
141.55
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
–11.00
–11.50
Open
interest
Chg
145-220 146-240
145-210 145-210
Thursday, March 29, 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.
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
Settle
June
Sept
Cash Prices | WSJ.com/commodities
Energy
Contract
High hilo
Low
Open
5.50 221,933
5.75 136,147
467.25
486.25
Wheat (MPLS)-5,000 bu.; cents per bu.
May
July
14.25 626,251
14.00 498,006
WSJ.com/commodities
l
l
l
l
0.822 t
1.353 t
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.294
2.785
2.250
2.862
1.274
2.379
1.990
2.008
1.751
-24.7
-30.4
2.601
2.794
2.725
-13.4
-18.4
34.6
-0.495
-0.453
-0.506 -276.9
0.927
-202.1
-278.9
-178.0
-205.1
-145.1
-290.2
-202.1
-228.0
-203.4
-136.0
47.7
0.734
0.924
-0.607
-0.596
0.505
0.657
-0.747 -288.0
0.344
-224.4
-0.316
-0.195
-0.087
-259.7
-261.1
1.841
1.975
2.131
-95.0
-94.4
-24.8
-0.151
-0.159
-0.251
-240.7
-244.5
-152.4
0.036
0.052
0.055
-270.1
-274.9
-232.3
-0.308
-0.370
-0.212
-262.0
-260.2
-148.6
1.214
1.461
1.635
0.835
0.690
1.369
1.504
-157.9
-157.0
-74.3
0.143
-144.9
-145.9
-113.0
1.152
-138.9
-141.6
-122.7
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Maturity
ING Groep NV*
JPMorgan Chase
International Paper
AT&T
INTNED
JPM
IP
T
6.000
2.400
4.800
4.100
Gilead Sciences
MetLife
Abbott Laboratories
Viacom
GILD
MET
ABT
VIA
4.150 March 1, ’47
5.875 March 15, ’49
2.900 Nov. 30, ’21
3.875 Dec. 15, ’21
April 16, ’49
June 7, ’21
June 15, ’44
Feb. 15, ’28
Current
Spread*, in basis points
One-day change
158
–29
57 –24
–16
171
–16
140
121
260
75
100
–12
–12
–11
–11
Last week
Stock Performance
Close ($)
% chg
179
78
n.a.
161
...
109.97
53.43
35.65
...
1.82
2.00
0.25
126
278
82
n.a.
75.39
45.89
59.92
39.60
0.82
–0.02
1.16
1.80
87
119
243
n.a.
93.28
95.92
13.48
10.89
1.16
1.69
–1.46
–0.73
69
n.a.
306
91
…
42.62
47.67
219.70
…
1.43
–0.13
–0.80
…And spreads that widened the most
American Express
Phillips 66
General Electric
Pitney Bowes
AXP
PSX
GE
PBI
2.200 Oct. 30, ’20
3.900 March 15, ’28
5.000 Jan. 21, ’49
4.700
April 1, ’23
89
135
240
356
Citibank NA
Air Lease
HSBC Holdings
Anthem
C
AL
HSBC
ANTM
2.100 June 12, ’20
3.000 Sept. 15, ’23
6.250 March 23, ’49
2.500 Nov. 21, ’20
76
130
295
90
18
15
10
10
8
7
7
6
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
PetSmart
Royal Caribbean Cruises
Charter Communications Operating
Crown Castle International
PETM
RCL
CHTR
CCI
7.125 March 15, ’23
3.700 March 15, ’28
5.375
May 1, ’47
4.875 April 15, ’22
57.625
96.805
97.119
106.062
DISH DBS
Reynolds Issuer
Harland Clarke Holdings
Post Holdings
DISH
REYNOL
HARCLA
POST
7.750
July 1, ’26
7.000 July 15, ’24
9.250 March 1, ’21
5.000 Aug. 15, ’26
94.500
104.875
103.375
95.000
Last week
Stock Performance
Close ($)
% chg
1.13
1.12
1.10
1.06
56.000
95.418
94.962
104.677
...
117.74
…
109.61
...
1.04
…
–1.15
1.00
1.00
0.88
0.88
92.750
104.813
102.000
94.000
…
...
...
75.76
…
...
...
1.90
105.750
n.a.
92.600
58.375
295.35
...
266.13
1.41
3.35
...
3.24
–2.08
99.750
33.000
95.335
n.a.
…
34.01
24.61
20.46
…
–1.10
–1.16
2.76
…And with the biggest price decreases
Netflix
Talen Energy Supply
Tesla
Windstream Services
NFLX
TLN
TSLA
WIN
LPL Holdings
FirstEnergy Solutions
Pilgrims Pride
Commercial Metals
LPLA
FE
PPC
CMC
5.875
10.500
5.300
6.375
Feb. 15, ’25
Jan. 15, ’26
Aug. 15, ’25
Aug. 1, ’23
104.750
86.000
87.250
57.250
5.750 Sept. 15, ’25
6.800 Aug. 15, ’39
5.875 Sept. 30, ’27
4.875 May 15, ’23
98.720
32.500
94.000
99.483
–1.00
–1.00
–1.00
–1.00
–0.78
–0.75
–0.75
–0.55
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | B9
BIGGEST 1,000 STOCKS
WSJ.com/stocks
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE American and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq BX
(formerly Boston), Chicago Stock Exchange,
Cboe, NYSE National and Nasdaq ISE.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Thursday, March 29, 2018
Net
Stock
Sym Close Chg
A B C
ABB
ABB 23.74 0.18
ADT
ADT 7.93 0.33
AES
AES 11.37 0.14
Aflac
AFL 43.76 0.21
AGNC Invt AGNC 18.92 0.11
ANGI Homesvcs ANGI 13.58 0.05
Ansys
ANSS 156.69 1.82
ASML
ASML 198.56 4.03
AT&T
T
35.65 0.09
AbbottLabs ABT 59.92 0.69
AbbVie
ABBV 94.65 0.38
Abiomed
ABMD 290.99 8.00
Accenture ACN 153.50 6.09
ActivisionBliz ATVI 67.46 1.49
AcuityBrands AYI 139.19 2.18
AdobeSystems ADBE 216.08 3.54
AdvanceAuto AAP 118.55 2.57
AdvMicroDevices AMD 10.05 0.24
AdvSemiEngg ASX 7.26 -0.04
Aegon
AEG 6.77 0.01
AerCap
AER 50.72 0.55
Aetna
AET 169.00 -0.43
AffiliatedMgrs AMG 189.58 4.58
AgilentTechs A
66.90 0.50
AgnicoEagle AEM 42.07 0.65
AirProducts APD 159.03 1.95
AkamaiTech AKAM 70.98 0.93
AlaskaAir ALK 61.96 0.39
Albemarle ALB 92.74 3.18
Alcoa
AA 44.96 0.54
AlexandriaRlEst ARE 124.89 1.33
AlexionPharm ALXN 111.46 0.85
Alibaba
BABA 183.54 4.63
AlignTech ALGN 251.13 6.71
Alkermes ALKS 57.96 -1.27
Alleghany Y
614.44 9.48
Allegion
ALLE 85.29 2.16
Allergan
AGN 168.29 2.64
t AllianceData ADS 212.86 -9.04
AlliantEnergy LNT 40.86 0.24
Allstate
ALL 94.80 0.19
AllyFinancial ALLY 27.15 0.56
AlnylamPharm ALNY 119.10-10.77
Alphabet C GOOG 1031.79 27.23
Alphabet A GOOGL 1037.14 31.96
Altaba
AABA 74.04 1.40
AlticeUSA ATUS 18.48 0.29
Altria
MO 62.32 -0.13
AlumofChina ACH 13.92 0.48
Amazon.com AMZN1447.34 15.92
Ambev
ABEV 7.27 0.16
Amdocs
DOX 66.72 0.53
Amerco
UHAL 345.10 2.32
Ameren
AEE 56.63 0.69
AmericaMovil AMX 19.09 0.25
AmericaMovil A AMOV 19.00 0.17
AmerAirlines AAL 51.96 1.11
AEP
AEP 68.59 -0.07
AmerExpress AXP 93.28 1.07
AmericanFin AFG 112.22 0.03
AmerHomes4Rent AMH 20.08 0.30
AIG
AIG 54.42 -0.10
AmerTowerREIT AMT 145.34 1.04
AmerWaterWorks AWK 82.13 0.94
Ameriprise AMP 147.94 0.98
AmerisourceBrgn ABC 86.21 1.10
Ametek
AME 75.97 1.02
Amgen
AMGN 170.48 0.02
Amphenol APH 86.13 1.28
AnadarkoPetrol APC 60.41 1.51
AnalogDevices ADI 91.13 1.22
Andeavor ANDV 100.56 1.53
AndeavorLog ANDX 44.81 1.15
AB InBev BUD 109.94 0.31
AnnalyCap NLY 10.43 0.12
AnteroResources AR 19.85 0.64
Anthem
ANTM 219.70 -1.78
Aon
AON 140.33 0.87
Apache
APA 38.48 1.13
ApartmtInv AIV 40.75 0.17
ApolloGlbMgmt APO 29.62
...
Apple
AAPL 167.78 1.30
ApplMaterials AMAT 55.61 1.55
Aptiv
APTV 84.97 2.15
AquaAmerica WTR 34.06 0.47
Aramark
ARMK 39.56 -0.12
ArcelorMittal MT 31.81 1.45
ArchCapital ACGL 85.59 -0.21
ArcherDaniels ADM 43.37 0.57
Arconic
ARNC 23.04 0.34
AristaNetworks ANET 255.30 10.16
ArrowElec ARW 77.02 1.29
AstraZeneca AZN 34.97 -0.16
AthenaHealth ATHN 143.03 2.27
Athene
ATH 47.81 0.26
Atlassian
TEAM 53.92 1.76
AtmosEnergy ATO 84.24 0.54
Autodesk ADSK 125.58 1.03
Autohome ATHM 85.94 2.59
Autoliv
ALV 145.94 3.82
ADP
ADP 113.48 1.72
AutoZone AZO 648.69 11.44
Avalonbay AVB 164.46 0.41
Avangrid
AGR 51.12 0.37
AveryDennison AVY 106.25 2.20
AxaltaCoating AXTA 30.19 0.03
BB&T
BBT 52.04 0.51
BCE
BCE 43.04 0.29
BHPBilliton BHP 44.43 0.94
BHPBilliton BBL 39.73 0.94
BOK Fin
BOKF 98.99 0.87
BP
BP 40.54 0.94
BT Group BT 16.16 0.17
BWX Tech BWXT 63.53 -0.97
Baidu
BIDU 223.19 0.09
BakerHughes BHGE 27.77 -0.30
Ball
BLL 39.71 0.52
BancoBilbaoViz BBVA 7.90 0.12
BancodeChile BCH 100.58 1.59
BancoMacro BMA 107.97 1.03
BcoSantChile BSAC 33.51 0.57
BcoSantMex BSMX 7.17 0.05
Stock
Net
Sym Close Chg
BancoSantander SAN 6.55 0.08
BanColombia CIB 42.02 0.43
BankofAmerica BAC 29.99 0.60
BankofMontreal BMO 75.57 0.91
BankNY Mellon BK 51.53 0.92
BkNovaScotia BNS 61.70 0.97
BankofOzarks OZRK 48.27 0.95
Barclays
BCS 11.82 0.06
BarrickGold ABX 12.45 0.06
BaxterIntl BAX 65.04 1.19
BectonDicknsn BDX 216.70 4.27
BeiGene
BGNE 168.00 3.99
Berkley
WRB 72.70 0.09
BerkHathwy B BRK.B 199.48 2.81
BerkHathwy A BRK.A 2981103069.00
BerryGlobal BERY 54.81 0.77
BestBuy
BBY 69.99 1.43
Bio-RadLab A BIO 250.08 2.46
Biogen
BIIB 273.82 2.00
BioMarinPharm BMRN 81.07 1.45
BlackKnight BKI 47.10 0.40
BlackBerry BB 11.50 -0.70
BlackRock BLK 541.72 13.69
Blackstone BX 31.95 0.43
BlueBuffaloPet BUFF 39.81 0.04
bluebirdbio BLUE 170.75 -1.40
Boeing
BA 327.88 7.86
BookingHldgs BKNG 2080.39 25.70
BorgWarner BWA 50.23 1.58
BostonProps BXP 123.22 -0.18
BostonSci BSX 27.32 0.64
Braskem
BAK 28.99 2.13
BrightHorizons BFAM 99.72 2.03
BrighthouseFin BHF 51.40 0.36
Bristol-Myers BMY 63.25 0.68
BritishAmTob BTI 57.69 0.36
Broadcom AVGO 235.65 -1.03
s BroadridgeFinl BR 109.69 2.55
BrookfieldMgt BAM 39.00 0.23
BrookfieldInfr BIP 41.64 0.59
t Brown&Brown BRO 25.44 -0.07
Brown-Forman B BF.B 54.40 1.58
Brown-Forman A BF.A 53.33 1.85
BuckeyePtrs BPL 37.39 -0.58
Bunge
BG 73.94 0.88
s BurlingtonStrs BURL 133.15 2.66
CA
CA 33.90 0.42
CBD Pao
CBD 20.20 0.64
CBRE Group CBRE 47.22 0.52
CBS A
CBS.A 51.44 -0.52
CBS B
CBS 51.39 -0.49
CDK Global CDK 63.34 0.60
CDW
CDW 70.31 0.38
CF Industries CF 37.73 1.24
CGI Group GIB 57.64 0.94
CH Robinson CHRW 93.71 2.02
CIT Group CIT 51.50 -0.03
CME Group CME161.74 2.90
CMS Energy CMS 45.29 0.22
CNA Fin
CNA 49.35 -0.48
CNOOC
CEO 147.87 0.72
CPFLEnergia CPL 15.00 0.31
CRH
CRH 34.02 0.24
CSRA
CSRA 41.23
...
CSX
CSX 55.71 1.40
CVS Health CVS 62.21 -0.50
CabotOil
COG 23.98 0.26
CadenceDesign CDNS 36.77 0.63
CaesarsEnt CZR 11.25 0.35
CamdenProperty CPT 84.18 0.12
CampbellSoup CPB 43.31 -0.10
CIBC
CM 88.28 0.92
CanNtlRlwy CNI 73.13 1.56
CanNaturalRes CNQ 31.47 0.96
CanPacRlwy CP 176.50 2.14
Canon
CAJ 36.45 0.17
CapitalOne COF 95.82 1.55
CardinalHealth CAH 62.68 0.58
Carlisle
CSL 104.41 1.18
Carlyle
CG 21.35 0.35
CarMax
KMX 61.94 1.30
Carnival
CCL 65.58 0.94
Carnival
CUK 65.50 0.81
Caterpillar CAT 147.38 2.22
CboeGlobalMkts CBOE 114.10 2.19
Celanese A CE 100.21 0.47
Celgene
CELG 89.21 0.80
Cemex
CX
6.62 0.10
CenovusEnergy CVE 8.54 0.36
Centene
CNC 106.87 6.52
CenterPointEner CNP 27.40 0.45
CentraisElBras EBR 6.35 0.04
CenturyLink CTL 16.43 0.22
Cerner
CERN 58.00 -0.64
t CharterComms CHTR 311.22 4.96
CheckPoint CHKP 99.34 0.30
Chemours CC 48.71 2.51
CheniereEnergy LNG 53.45 1.15
CheniereEnerPtrs CQP 29.10 0.59
CheniereEnHldgs CQH 27.61 0.13
Chevron
CVX 114.04 1.94
ChinaEastrnAir CEA 36.80 1.47
ChinaLifeIns LFC 13.99 0.07
ChinaLodging HTHT 131.71 5.91
ChinaMobile CHL 45.75 0.10
ChinaPetrol SNP 88.48 2.76
ChinaSoAirlines ZNH 52.63 2.34
ChinaTelecom CHA 44.48 0.81
ChinaUnicom CHU 12.83 0.29
Chipotle
CMG 323.11 3.60
Chubb
CB 136.77 -1.49
s ChunghwaTel CHT 38.86 0.36
Church&Dwight CHD 50.36 1.12
Cigna
CI 167.74 -0.58
CimarexEnergy XEC 93.50 0.75
CincinnatiFin CINF 74.26 0.40
Cintas
CTAS 170.58 1.53
CiscoSystems CSCO 42.89 1.23
Citigroup
C
67.50 -0.76
CitizensFin CFG 41.98 0.43
CitrixSystems CTXS 92.80 1.10
Clorox
CLX 133.11 2.80
Coca-Cola KO 43.43 0.11
Coca-Cola Euro CCE 41.66 0.23
Coca-Cola Femsa KOF 66.43 0.84
Cognex
CGNX 51.99 1.22
Mutual Funds
Net
Sym Close Chg
Stock
CognizantTech CTSH 80.50 0.83
ColgatePalm CL 71.68 0.88
Comcast A CMCSA 34.17 0.89
Comerica
CMA 95.93 1.66
CommerceBcshrs CBSH 59.91 0.70
CommScope COMM 39.97 1.32
SABESP
SBS 10.59 0.27
ConagraBrands CAG 36.88 0.56
ConchoRscs CXO 150.33 7.08
ConocoPhillips COP 59.29 0.56
ConEd
ED 77.94 0.38
s ConstBrands B STZ.B 229.65 10.44
ConstBrands A STZ 227.92 7.43
ContinentalRscs CLR 58.95 1.64
Cooper
COO 228.81 3.66
Copart
CPRT 50.93 1.10
Corning
GLW 27.88 0.53
CoStar
CSGP 362.68 6.65
Costco
COST 188.43 4.82
Coty
COTY 18.30 0.05
Credicorp
BAP 227.04 2.39
CreditAcceptance CACC 330.41 5.80
CreditSuisse CS 16.79 0.21
CrownCastle CCI 109.61 -1.27
CrownHoldings CCK 50.75 0.60
Ctrip.com CTRP 46.62 0.45
Cullen/Frost CFR 106.07 1.38
Cummins
CMI 162.09 2.42
CurtissWright CW 135.07 3.54
CypressSemi CY 16.96 0.34
D E F
DISH Network DISH 37.89
DTE Energy DTE 104.40
DXC Tech DXC 100.53
Danaher
DHR 97.91
Darden
DRI 85.25
DaVita
DVA 65.94
Deere
DE 155.32
DellTechs DVMT 73.21
DeltaAir
DAL 54.81
t DentsplySirona XRAY 50.31
DeutscheBank DB 13.98
DevonEnergy DVN 31.79
DexCom
DXCM 74.16
Diageo
DEO 135.42
DiamondbkEner FANG 126.52
DigitalRealty DLR 105.38
DiscoverFinSvcs DFS 71.93
DiscovComm C DISCK 19.52
DiscovComm B DISCB 37.00
DiscovComm A DISCA 21.43
Disney
DIS 100.44
DolbyLab
DLB 63.56
DollarGeneral DG 93.55
DollarTree DLTR 94.90
DominionEner D
67.43
Domino's
DPZ 233.56
Donaldson DCI 45.05
DouglasEmmett DEI 36.76
Dover
DOV 98.22
t DowDuPont DWDP 63.71
DrPepperSnap DPS 118.38
s DropBox
DBX 31.25
DukeEnergy DUK 77.47
DukeRealty DRE 26.48
ENI
E
35.33
EOG Rscs EOG 105.27
EPAM Systems EPAM 114.52
EQT
EQT 47.51
E*TRADE ETFC 55.41
EastWestBncp EWBC 62.54
EastmanChem EMN 105.58
Eaton
ETN 79.91
EatonVance EV 55.67
eBay
EBAY 40.24
Ecolab
ECL 137.07
Ecopetrol
EC 19.33
EdisonInt
EIX 63.66
EdwardsLife EW 139.52
ElectronicArts EA 121.24
EmersonElec EMR 68.30
EnbridgeEnPtrs EEP 9.64
Enbridge
ENB 31.47
Encana
ECA 11.00
EncompassHealth EHC 57.17
EnelAmericas ENIA 11.62
s EnelChile
ENIC 6.40
EnelGenChile EOCC 23.79
s Energen
EGN 62.86
EnergyTransferEq ETE 14.21
EnergyTransfer ETP 16.22
Entergy
ETR 78.78
EnterpriseProd EPD 24.48
Equifax
EFX 117.81
Equinix
EQIX 418.14
EquityLife ELS 87.77
EquityResdntl EQR 61.62
Ericsson
ERIC 6.40
EssexProp ESS 240.68
s EsteeLauder EL 149.72
EverestRe RE 256.82
EversourceEner ES 58.92
EXEL 22.15
Exelixis
Exelon
EXC 39.01
Expedia
EXPE 110.41
ExpeditorsIntl EXPD 63.30
ExpressScripts ESRX 69.08
ExtraSpaceSt EXR 87.36
ExxonMobil XOM 74.61
F5Networks FFIV 144.61
FMC
FMC 76.57
Facebook
FB 159.79
FactSet
FDS 199.42
Fastenal
FAST 54.59
FederalRealty FRT 116.11
FedEx
FDX 240.11
Ferrari
RACE 120.52
FiatChrysler FCAU 20.52
FibriaCelulose FBR 19.50
FidNatlFin FNF 40.02
FidNatlInfo FIS 96.30
FifthThirdBncp FITB 31.75
58.com
WUBA 79.86
FirstAmerFin FAF 58.68
0.45
0.40
-0.07
1.39
0.87
-0.06
3.84
1.11
0.88
0.36
0.22
0.59
0.88
0.31
1.85
0.34
1.65
0.25
1.05
0.26
1.90
0.81
0.61
0.99
-0.36
-0.31
1.34
-0.02
2.01
1.30
0.02
0.27
0.05
0.21
0.51
1.45
2.99
0.92
1.81
0.72
1.40
0.86
1.17
0.13
1.76
0.66
0.59
2.75
1.91
1.00
0.28
1.11
0.48
0.34
0.24
0.04
-0.68
2.08
-0.04
0.13
-0.22
0.42
-1.23
1.12
0.56
0.07
0.04
1.05
3.69
-1.51
0.45
-0.21
0.47
4.09
1.68
-0.65
...
1.80
2.00
3.46
6.76
0.98
1.41
-0.55
5.31
0.90
0.58
0.25
0.21
0.98
0.19
2.26
0.57
Stock
FirstData
FDC 16.00
FirstHorizonNatl FHN 18.83
FirstRepBank FRC 92.61
FirstSolar FSLR 70.98
FirstEnergy FE 34.01
Fiserv
FISV 71.31
FleetCorTech FLT 202.50
Flex
FLEX 16.33
FlirSystems FLIR 50.01
Fluor
FLR 57.22
FomentoEconMex FMX 91.43
FordMotor F
11.08
Fortinet
FTNT 53.58
Fortis
FTS 33.77
Fortive
FTV 77.52
FortBrandsHome FBHS 58.89
Franco-Nevada FNV 68.39
FranklinRscs BEN 34.68
FreeportMcM FCX 17.57
FreseniusMed FMS 51.08
G H I
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.
American Century Inv
44.75
Ultra
American Funds Cl A
32.53
AmcpA p
39.74
AMutlA p
26.72
BalA p
12.64
BondA p
60.53
CapIBA p
51.09
CapWGrA
56.75
EupacA p
61.73
FdInvA p
51.00
GwthA p
10.19
HI TrA p
39.72
ICAA p
22.75
IncoA p
44.08
N PerA p
46.99
NEcoA p
67.76
NwWrldA
SmCpA p
56.54
TxExA p
12.81
WshA p
44.82
Baird Funds
AggBdInst
10.64
CorBdInst
10.99
BlackRock Funds A
+0.76
+0.46
+0.43
+0.21
+0.03
+0.31
+0.48
+0.65
+0.83
+0.78
+0.01
+0.44
+0.17
+0.60
+0.67
+0.87
+0.63
+0.01
+0.54
+0.02
+0.03
19.61
GlblAlloc p
3.1 BlackRock Funds Inst
21.98
EqtyDivd
3.3 GlblAlloc
19.73
-2.1 HiYldBd
7.64
-1.2 StratIncOpptyIns 9.92
-1.5 Bridge Builder Trust
-2.9 CoreBond
NA
0.3 Dimensional Fds
0.9 5GlbFxdInc
10.83
-0.5 EmgMktVa
31.92
2.9 EmMktCorEq 23.61
-0.4 IntlCoreEq
14.40
-1.3 IntlVal
20.18
-2.0 IntSmCo
21.19
2.1 IntSmVa
22.45
5.3 US CoreEq1
22.60
1.3 US CoreEq2
21.30
1.3 US Small
35.33
-1.1 US SmCpVal 37.03
-1.4 US TgdVal
24.31
38.03
USLgVa
-1.5 Dodge & Cox
-1.4 Balanced
103.70
13.49
GblStock
+0.13 -0.5 Income
KB Fin
KB 57.94
KKR
KKR 20.30
KLA Tencor KLAC 109.01
KT
KT 13.70
KSCitySouthern KSU 109.85
Kellogg
K
65.01
KeyCorp
KEY 19.55
KeysightTechs KEYS 52.39
KilroyRealty KRC 70.96
KimberlyClark KMB 110.13
KimcoRealty KIM 14.40
KinderMorgan KMI 15.06
Knight-Swift KNX 46.01
Kohl's
KSS 65.51
KoninklijkePhil PHG 38.31
KoreaElcPwr KEP 15.39
KraftHeinz KHC 62.29
Kroger
KR 23.94
Kyocera
KYO 56.74
LATAMAirlines LTM 15.39
L Brands
LB 38.21
LG Display LPL 12.10
LINE
LN 39.01
LKQ
LKQ 37.95
L3 Tech
LLL 208.00
LabCpAm LH 161.75
LamResearch LRCX 203.16
LamarAdv LAMR 63.66
LambWeston LW 58.22
LasVegasSands LVS 71.90
Lazard
LAZ 52.56
Lear
LEA 186.09
Leggett&Platt LEG 44.36
Leidos
LDOS 65.40
Lennar A
LEN 58.94
Lennar B
LEN.B 47.69
LennoxIntl LII 204.37
LeucadiaNatl LUK 22.73
LibertyBroadbandA LBRDA 84.80
LibertyBroadbandC LBRDK 85.69
LibertyGlobal C LBTYK 30.43
LibertyGlobal A LBTYA 31.31
LibertyQVC A QRTEA 25.17
LibertyFormOne C FWONK 30.85
LibertyFormOne A FWONA 29.29
LibertyBraves A BATRA 22.73
LibertyBraves C BATRK 22.82
LibertySirius A LSXMA 41.10
LibertySirius C LSXMK 40.85
LibertyProperty LPT 39.73
EliLilly
LLY 77.37
LincolnElectric LECO 89.95
LincolnNational LNC 73.06
LiveNationEnt LYV 42.14
LloydsBanking LYG 3.72
LockheedMartin LMT 337.93
Loews
L
49.73
LogitechIntl LOGI 36.73
LogMeIn
LOGM 115.55
Lowe's
LOW 87.75
s lululemon
LULU 89.12
LyondellBasell LYB 105.68
0.48
1.97
1.41
2.28
0.45
0.62
3.33
0.15
0.70
0.95
1.20
0.28
0.38
Net YTD
NAV Chg % Ret Fund
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
16.49
14.33
17.98
15.18
10.66
+0.12
+0.12
+0.17
+0.16
+0.11
-0.4
-0.3
-0.3
-0.2
-0.3
23.76
Balanc
90.41
BluCh
Contra
124.27
124.22
ContraK
CpInc r
10.13
39.33
DivIntl
GroCo
187.99
187.99
GrowCoK
7.76
InvGB
11.02
InvGrBd
53.94
LowP r
MagIn
105.82
113.18
OTC
Puritn
23.35
SrsEmrgMkt 21.91
SrsGroCoRetail 17.56
16.15
SrsIntlGrw
SrsIntlVal
10.55
10.45
TotalBond
+0.22
+1.63
+2.14
+2.14
+0.04
+0.33
+3.01
+3.00
+0.01
+0.02
+0.45
+1.65
+2.07
+0.25
+0.29
+0.28
+0.16
+0.08
+0.02
0.1
3.0
3.1
3.1
-0.8
-1.7
5.2
5.2
-1.5
-1.4
-1.1
1.2
3.0
-0.3
2.3
5.6
...
-1.3
-1.2
-0.9
-2.1
-1.7
NA
6.5
-6.5
-0.8
-0.8
-0.8
0.1
-0.9
-0.8
-0.6
-0.6
-1.5
2.3
-0.4
-0.3
-0.3
First Eagle Funds
58.38 +0.47
FPA Funds
FPACres
34.35 +0.20
FrankTemp/Frank Adv
IncomeAdv
2.27 +0.02
FrankTemp/Franklin A
CA TF A p
7.31 +0.01
2.29 +0.02
IncomeA p
59.55 +0.89
RisDv A p
FrankTemp/Franklin C
2.31 +0.01
Income C t
FrankTemp/Temp A
GlbA
-1.2
-1.0
-2.5
-1.5
-2.6
-2.6
-3.1
GlBond A p
Growth A p
Net
Sym Close Chg
Stock
PrincipalFin PFG 60.91
Procter&Gamble PG 79.28
Progressive PGR 60.93
Prologis
PLD 62.99
Proofpoint PFPT 113.65
PrudentialFin PRU 103.55
Prudential PUK 51.13
PublicServiceEnt PEG 50.24
PublicStorage PSA 200.39
PulteGroup PHM 29.49
Qiagen
QGEN 32.31
Qorvo
QRVO 70.45
Qualcomm QCOM 55.41
QuestDiag DGX 100.30
O P Q
M&T Bank MTB 184.36 3.77
MGM Resorts MGM 35.02 0.92
MKS Instrum MKSI 115.65 4.30
MPLX
MPLX 33.04 0.42
MSCI
MSCI149.47 -1.08
Macerich
MAC 56.02 -0.89
Macy's
M
29.74 0.67
MadisonSquGarden MSG 245.80 3.28
MagellanMid MMP 58.35 1.19
MagnaIntl MGA 56.35 1.94
Manpower MAN 115.10 2.64
ManulifeFin MFC 18.58 0.27
MarathonOil MRO 16.13 0.81
MarathonPetrol MPC 73.11 1.29
Markel
MKL 1170.25 15.57
MarketAxess MKTX 217.44 4.46
Marriott
MAR 135.98 2.08
Marsh&McLen MMC 82.59 0.70
MartinMarietta MLM 207.30 5.51
MarvellTech MRVL 21.00 0.48
Masco
MAS 40.44 0.61
Mastercard MA 175.16 4.81
MatchGroup MTCH 44.44 1.28
MaximIntProducts MXIM 60.22 1.27
McCormick MKC 106.39 0.44
McDonalds MCD 156.38 -2.03
McKesson MCK 140.87 0.21
Medtronic MDT 80.22 1.76
MelcoResorts MLCO 28.98 0.84
MercadoLibre MELI 356.39 15.17
Merck
MRK 54.47 -0.62
MetLife
MET 45.89 -0.01
MettlerToledo MTD 575.03 3.13
MichaelKors KORS 62.08 0.87
MicroFocus MFGP 14.04 -0.10
MicrochipTech MCHP 91.36 0.20
MicronTech MU 52.14 0.65
Microsemi MSCC 64.72 0.41
Microsoft MSFT 91.27 1.88
MidAmApt MAA 91.24 0.30
Middleby
MIDD 123.79 0.33
MitsubishiUFJ MTU 6.64 0.02
MizuhoFin MFG 3.70 0.03
MobileTeleSys MBT 11.39 0.12
MohawkInds MHK 232.22 3.33
MolsonCoors B TAP 75.33 -0.08
Momo
MOMO 37.38 1.77
Mondelez MDLZ 41.73 1.14
Monsanto MON 116.69 -0.06
MonsterBev MNST 57.21 0.97
Moody's
MCO 161.30 2.36
MorganStanley MS 53.96 1.05
Mosaic
MOS 24.28 0.71
MotorolaSol MSI 105.30 1.34
MuleSoft
MULE 43.98 0.28
Mylan
MYL 41.17 0.67
NRG Energy NRG 30.53 0.26
NTTDoCoMo DCM 25.57 0.22
NVR
NVR 3029.08 51.19
NXP Semi NXPI 117.00 0.74
Nasdaq
NDAQ 86.22 2.73
NationalGrid NGG 56.43 -0.26
NatlInstruments NATI 50.57 1.32
NatlOilwell NOV 36.81 0.88
NatlRetailProp NNN 39.26 0.28
NektarTherap NKTR 106.26 1.25
NetApp
NTAP 61.69 2.22
Netease
NTES 280.39 5.85
Netflix
NFLX 295.35 9.58
Neurocrine NBIX 82.93 0.10
NewOrientalEduc EDU 87.65 1.40
NY CmntyBcp NYCB 13.03 0.08
NewellBrands NWL 25.48 0.20
NewmontMin NEM 39.07 0.68
NewsCorp B NWS 16.10 0.30
NewsCorp A NWSA 15.80 0.37
NextEraEnergy NEE 163.33 1.06
Nike
NKE 66.44 1.00
NiSource
NI
23.91 0.19
NobleEnergy NBL 30.30 0.94
Fund
Net
Sym Close Chg
Stock
NOK 5.47 0.04
1.51 Nokia
0.10 NomuraHoldings NMR 5.85 0.08
NDSN 136.34 2.34
2.44 Nordson
0.29 Nordstrom JWN 48.41 0.51
2.26 NorfolkSouthern NSC 135.78 1.81
1.11 NorthernTrust NTRS 103.13 2.00
0.28 NorthropGrum NOC 349.12 4.41
1.16 NorwegCruise NCLH 52.97 0.49
NVS 80.85 -0.40
-0.44 Novartis
0.67 NovoNordisk NVO 49.25 0.13
NUE 61.09 1.77
-0.13 Nucor
NTNX 49.11 1.17
0.25 Nutanix
NTR 47.26 1.45
0.51 Nutrien
NVDA 231.59 10.24
0.95 NVIDIA
0.30
0.52
0.92 OGE Energy OGE 32.77 0.44
0.32 ONEOK
OKE 56.92 1.29
0.57 OReillyAuto ORLY 247.38 4.66
0.37 OccidentalPetrol OXY 64.96 1.81
0.54 OldDomFreight ODFL 146.97 4.86
0.08 OldRepublic ORI 21.45 0.04
0.85 Omnicom
OMC 72.67 0.03
0.45 ON Semi
ON 24.46 0.65
5.36 OpenText
OTEX 34.80 0.76
0.22 Oracle
ORCL 45.75 0.77
6.95 Orange
ORAN 17.08 0.09
-0.50 OrbitalATK OA 132.61 0.09
1.83 Orix
IX
89.86 1.42
1.12 Oshkosh
OSK 77.27 1.03
1.03 OwensCorning OC 80.40 -1.20
5.43 PG&E
PCG 43.93 0.69
0.46 PLDT
PHI 28.37 0.32
1.14 PNC Fin
PNC 151.24 1.79
0.18 POSCO
PKX 78.85 1.54
0.24 PPG Ind
PPG 111.60 1.63
4.15 PPL
PPL 28.29 0.12
0.28 PTC
PTC 78.01 0.97
1.84 PVH
PVH 151.43 7.41
1.78 Paccar
PCAR 66.17 1.67
-0.38 PackagingCpAm PKG 112.70 1.52
-0.54 PacWestBancorp PACW 49.53 0.62
0.14 s PagSeguroDig PAGS 38.32 1.22
-0.02 PaloAltoNtwks PANW 181.52 4.62
0.06 ParkerHannifin PH 171.03 2.88
0.03 ParsleyEnergy PE
28.99 1.65
0.03 Paychex
PAYX 61.59 0.99
0.27 PaycomSoftware PAYC 107.39 2.21
0.14 PayPal
PYPL 75.87 0.81
0.39 Pearson
PSO 10.53
...
0.36 PembinaPipeline PBA 31.23 0.64
1.16 Pentair
PNR 68.13 0.24
1.05 People'sUtdFin PBCT 18.66 0.20
0.22 PepsiCo
PEP 109.15 -0.03
... PerkinElmer PKI 75.72 0.85
2.60 Perrigo
PRGO 83.34 0.74
0.29 PetroChina PTR 69.74 -0.10
0.11 PetroleoBrasil PBR 14.14 0.38
3.90 PetroleoBrasilA PBR.A 12.99 0.29
1.87 Pfizer
PFE 35.49 0.19
3.16 PhilipMorris PM 99.40 -0.39
2.53 Phillips66
PSX 95.92 1.59
M N
Fidelity Invest
Net YTD
NAV Chg % Ret
13.51 +0.02
45.33 +0.31
Intl Stk
197.11 +2.46
... -3.5 Stock
+0.13 -0.4 DoubleLine Funds
NA
...
... -0.8 TotRetBdI
+0.01 0.4 Edgewood Growth Instituti
EdgewoodGrInst 31.49 +0.52
... NA Federated Instl
5.70 +0.02
StraValDivIS
+0.01 -0.4 Fidelity
92.73 +1.26
+0.33 2.2 500IdxInst
+0.31 1.7 500IdxInstPrem 92.73 +1.26
+0.15 -1.0 500IdxPrem 92.73 +1.26
+0.23 -1.3 ExtMktIdxPrem r 62.14 +0.75
+0.20 -0.4 IntlIdxPrem r 42.77 +0.33
+0.19 -2.3 SAIUSLgCpIndxFd 14.17 +0.19
75.91 +1.01
+0.30 -0.6 TMktIdxF r
+0.29 -1.0 TMktIdxPrem 75.91 +1.02
11.34 +0.02
USBdIdxInstPrem
+0.39 -1.5
+0.38 -2.3 Fidelity Advisor I
32.08 +0.47
+0.29 -2.2 NwInsghtI
+0.57 -2.4 Fidelity Freedom
FF2020
16.51 +0.12
14.35 +0.12
+0.83 -1.5 FF2025
18.00 +0.17
+0.12 -2.7 FF2030
Net
Sym Close Chg
Stock
J K L
JD.com
JD 40.49
JPMorganChase JPM 109.97
JackHenry JKHY 120.95
JacobsEngg JEC 59.15
JamesHardie JHX 17.88
JanusHenderson JHG 33.09
JazzPharma JAZZ 150.99
JetBlue
JBLU 20.32
J&J
JNJ 128.15
JohnsonControls JCI 35.24
JonesLang JLL 174.64
JuniperNetworks JNPR 24.33
KAR Auction KAR 54.20
Data provided by
Thursday, March 29, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
0.17
0.21
1.10
1.66
-0.38
0.57
5.87
0.02
0.84
1.37
0.99
0.22
1.30
0.09
0.87
0.59
1.38
0.57
0.82
0.60
GGP
GGP 20.46 -0.09
Gallagher AJG 68.73 0.53
Gaming&Leisure GLPI 33.47 -0.20
Gap
GPS 31.20 0.30
GardnerDenver GDI 30.68 0.63
Garmin
GRMN 58.93 0.72
Gartner
IT 117.62 0.81
Gazit-Globe GZT 9.82 0.22
GeneralDynamics GD 220.90 3.62
GeneralElec GE 13.48 -0.20
GeneralMills GIS 45.06 0.71
GeneralMotors GM 36.34 0.87
Genpact
G
31.99 0.40
Gentex
GNTX 23.02 0.42
GenuineParts GPC 89.84 1.16
Gerdau
GGB 4.66 0.21
Gildan
GIL 28.89 0.29
GileadSciences GILD 75.39 0.61
GSK
GSK 39.07 -0.31
GlobalPayments GPN 111.52 1.44
GoDaddy
GDDY 61.42 2.49
Goldcorp
GG 13.82 0.31
GoldmanSachs GS 251.86 2.49
Goodyear GT 26.58 0.22
Graco
GGG 45.72 1.13
Grainger
GWW 282.27 4.79
GreatPlainsEner GXP 31.79 0.46
Grifols
GRFS 21.20 0.18
GrubHub
GRUB 101.47 2.36
GpoAvalAcc AVAL 8.31 -0.03
GpoFinGalicia GGAL 65.76 0.66
GrupoTelevisa TV 15.96 0.15
Guidewire GWRE 80.83 1.62
HCA Healthcare HCA 97.00 -0.15
HCP
HCP 23.23 -0.16
HDFC Bank HDB 98.77 1.93
HD Supply HDS 37.94 0.47
HP
HPQ 21.92 0.23
HSBC
HSBC 47.67 -0.06
Halliburton HAL 46.94 0.89
Hanesbrands HBI 18.42 0.04
HarleyDavidson HOG 42.88 0.20
Harris
HRS 161.28 1.50
HartfordFinl HIG 51.52 -0.21
Hasbro
HAS 84.30 0.48
Heico A
HEI.A 70.95 0.20
Heico
HEI 86.81 -0.17
Helm&Payne HP 66.56 1.98
HenrySchein HSIC 67.21 0.94
Herbalife
HLF 97.47 0.30
Hershey
HSY 98.96 0.71
Hess
HES 50.62 1.89
HewlettPackard HPE 17.54 -0.12
Hexcel
HXL 64.59 0.43
Hill-Rom
HRC 87.00 1.10
Hilton
HLT 78.76 0.45
HollyFrontier HFC 48.86 1.30
Hologic
HOLX 37.36 -0.03
HomeDepot HD 178.24 3.48
HondaMotor HMC 34.73 0.31
Honeywell HON 144.51 1.25
HormelFoods HRL 34.32 0.66
DR Horton DHI 43.84 0.56
HostHotels HST 18.64 0.07
s HowardHughes HHC 139.13 2.79
HuanengPower HNP 26.85 0.24
Hubbell
HUBB 121.78 1.91
Humana
HUM 268.83 1.28
JBHunt
JBHT 117.15 2.23
HuntingtonBcshs HBAN 15.10 0.08
HuntingIngalls HII 257.76 4.58
Huntsman HUN 29.25 0.36
HyattHotels H
76.26 -0.41
IAC/InterActive IAC 156.38 2.27
ICICI Bank IBN 8.85 0.14
IdexxLab
IDXX 191.39 2.60
IHSMarkit INFO 48.24 0.29
ING Groep ING 16.93 0.01
Invesco
IVZ 32.01 0.53
IPG Photonics IPGP 233.38 7.60
IQVIA
IQV 98.11 -0.51
IRSA Prop IRCP 44.50
...
IcahnEnterprises IEP 57.04 -0.13
Icon
ICLR 118.14 -0.22
IDEX
IEX 142.51 1.99
IllinoisToolWks ITW 156.66 2.80
Illumina
ILMN 236.42 1.43
t ImperialOil IMO 26.50 0.34
Incyte
INCY 83.33 -1.63
Infosys
INFY 17.85 0.16
Ingersoll-Rand IR
85.51 1.56
Ingredion
INGR 128.92 2.37
Intel
INTC 52.08 2.48
InteractiveBrkrs IBKR 67.24 1.52
ICE
ICE 72.52 1.07
InterContinentl IHG 61.21 0.09
IBM
IBM 153.43 0.91
IntlFlavors IFF 136.91 1.85
IntlPaper
IP
53.43 1.05
Interpublic IPG 23.03 0.18
Intuit
INTU 173.35 2.42
IntuitiveSurgical ISRG 412.83 10.44
InvitatHomes INVH 22.83 0.16
IonisPharma IONS 44.08 -1.85
IronMountain IRM 32.86 0.15
IsraelChemicals ICL
4.24 0.08
ItauUnibanco ITUB 15.60 0.38
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each.
Fund
Net
Sym Close Chg
PilgrimPride PPC 24.61
PinnacleFoods PF 54.10
PinnacleWest PNW 79.80
PioneerNatRscs PXD 171.78
PlainsAllAmPipe PAA 22.03
PlainsGP
PAGP 21.75
PolarisIndustries PII 114.52
Pool
POOL 146.22
Praxair
PX 144.30
-0.29
0.31
0.33
4.26
0.42
0.33
1.82
2.46
2.14
1.51
0.44
0.49
0.46
1.35
0.65
-0.52
0.88
-1.73
0.41
0.15
1.91
0.71
0.79
R S
RELX
RENX 20.79
RELX
RELX 20.89
RPM
RPM 47.67
RSP Permian RSPP 46.88
RalphLauren RL 111.80
RandgoldRscs GOLD 83.24
RaymondJames RJF 89.41
Raytheon RTN 215.82
RealtyIncome O
51.73
RedHat
RHT 149.51
RegencyCtrs REG 58.98
RegenPharm REGN 344.36
RegionsFin RF 18.58
ReinsGrp
RGA 154.00
RelianceSteel RS 85.74
RepublicSvcs RSG 66.23
ResMed
RMD 98.47
RestaurantBrands QSR 56.92
RioTinto
RIO 51.53
RobertHalf RHI 57.89
Rockwell
ROK 174.20
RockwellCollins COL 134.85
RogersComm B RCI 44.68
Rollins
ROL 51.03
RoperTech ROP 280.69
RossStores ROST 77.98
RoyalBkCanada RY 77.29
RoyalBkScotland RBS 7.40
RoyalCaribbean RCL 117.74
RoyalDutchA RDS.A 63.81
RoyalDutchB RDS.B 65.53
Ryanair
RYAAY 122.85
SAP
SAP 105.16
S&P Global SPGI 191.06
SBA Comm SBAC 170.92
SEI Investments SEIC 74.91
Sina
SINA 104.27
SINOPEC
SHI 61.32
SK Telecom SKM 24.17
SLGreenRealty SLG 96.83
SS&C Tech SSNC 53.64
SVB Fin
SIVB 240.01
Sabre
SABR 21.45
SageTherap SAGE 161.07
Salesforce.com CRM 116.30
Sanofi
SNY 40.08
SantanderCons SC 16.30
Sasol
SSL 34.03
Schlumberger SLB 64.78
SchwabC
SCHW 52.22
Seagate
STX 58.52
SealedAir SEE 42.79
SeattleGenetics SGEN 52.34
SemicondctrMfg SMI 6.60
SempraEnergy SRE 111.22
0.13
0.14
0.26
1.88
1.76
0.92
1.90
4.76
0.19
3.31
-0.04
5.88
0.30
-0.77
2.61
0.73
2.22
1.31
1.33
1.06
-0.50
-0.45
0.41
0.56
4.20
1.82
0.97
0.04
1.21
0.73
0.73
1.98
1.18
3.78
0.46
1.95
4.54
0.17
0.42
-0.35
2.10
4.20
0.18
2.26
3.42
0.12
0.26
1.01
1.57
1.32
1.63
0.57
0.66
0.16
0.89
Net
Sym Close Chg
Stock
ServiceCorp SCI 37.74
ServiceMaster SERV 50.85
ServiceNow NOW 165.45
ShawComm B SJR 19.26
SherwinWilliams SHW 392.12
ShinhanFin SHG 42.40
Shire
SHPG 149.39
Shopify
SHOP 124.59
SignatureBank SBNY 141.95
SimonProperty SPG 154.35
SiriusXM
SIRI 6.24
SkechersUSA SKX 38.89
Skyworks SWKS 100.26
SmithAO
AOS 63.59
Smith&Nephew SNN 38.15
Smucker
SJM 124.01
Snap
SNAP 15.87
SnapOn
SNA 147.54
SOQUIMICH SQM 49.15
Sony
SNE 48.34
Southern
SO 44.66
SoCopper SCCO 54.18
SouthwestAir LUV 57.28
SpectraEnerPtrs SEP 33.64
SpiritAeroSys SPR 83.70
Splunk
SPLK 98.39
Sprint
S
4.88
Square
SQ 49.20
StanleyBlackDck SWK 153.20
Starbucks SBUX 57.89
StateStreet STT 99.73
Statoil
STO 23.65
SteelDynamics STLD 44.22
STMicroelec STM 22.29
Stryker
SYK 160.92
SumitomoMits SMFG 8.50
SunComms SUI 91.37
SunLifeFinancial SLF 41.12
SuncorEnergy SU 34.54
SunTrustBanks STI 68.04
Symantec SYMC 25.85
SynchronyFin SYF 33.53
Synopsys SNPS 83.24
SynovusFin SNV 49.94
Sysco
SYY 59.96
T U V
TAL Education TAL 37.09
TD Ameritrade AMTD 59.23
TE Connectivity TEL 99.90
Telus
TU 35.16
Ternium
TX 32.49
TIM Part
TSU 21.67
TJX
TJX 81.56
T-MobileUS TMUS 61.04
TRowePrice TROW 107.97
TableauSftwr DATA 80.82
TaiwanSemi TSM 43.76
TakeTwoSoftware TTWO 97.78
Tapestry
TPR 52.61
TargaResources TRGP 44.00
Target
TGT 69.43
TataMotors TTM 25.70
TechnipFMC FTI 29.45
TeckRscsB TECK 25.76
TelecomArgentina TEO 31.33
TelecomItalia TI
9.57
TelecomItalia A TI.A 8.30
TeledyneTech TDY 187.17
Teleflex
TFX 254.98
TelefonicaBras VIV 15.36
Thursday, March 29, 2018
52-Wk %
Sym Hi/Lo Chg Stock
Highs
Ablynx
ABLX
AddusHomeCare ADUS
Ameresco
AMRC
AmericoldRealty COLD
Azul
AZUL
BGStaffing
BGSF
BancSanBrasil BSBR
Bandwidth
BAND
Bilibili
BILI
Bio-Techne
TECH
BroadridgeFinl BR
BurlingtonStrs BURL
CMSevenStarWt CMSSW
CMSevenStarUn CMSSU
Caleres
CAL
CambiumLearning ABCD
CarGurus
CARG
CentralGarden CENT
ChunghwaTel CHT
ColliersIntl
CIGI
ConsldWater CWCO
ConstBrands B STZ.B
Crocs
CROX
DSW
DSW
DropBox
DBX
EnelChile
ENIC
Energen
EGN
Energizer
ENR
EsteeLauder
EL
FlowersFoods FLO
HowardHughes HHC
Independence IHC
InfuSystems
INFU
Joint
JYNT
KornFerry
KFY
Lindsay
LNN
LivePerson
LPSN
lululemon
LULU
LunaInnov
LUNA
MDU Rscs
MDU
MGPIngredients MGPI
55.01
49.55
13.20
19.28
35.05
19.45
12.05
33.23
11.80
151.89
110.05
133.91
0.35
10.25
34.47
11.35
39.94
43.28
38.93
69.70
15.35
230.55
16.50
22.78
34.37
6.55
63.29
64.00
150.40
21.95
139.62
36.36
2.90
7.25
52.17
100.40
16.60
89.54
3.27
28.23
90.62
1.3
5.0
9.7
2.4
2.9
3.2
5.2
1.8
-2.1
2.4
2.4
2.0
12.9
0.5
-0.6
11.8
14.3
3.8
0.9
2.4
-1.1
4.8
1.2
0.7
0.9
0.6
3.4
12.4
2.5
2.1
2.0
-0.1
3.8
2.7
0.5
2.3
4.1
3.7
1.9
1.0
1.7
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
94.40 2.1
42.25 15.7
11.90 3.5
67.80 0.5
13.05 1.7
9.06 1.7
39.97 3.3
14.25 6.1
6.77 -9.0
61.86 5.1
23.69 3.5
53.09 0.5
9.73 -12.7
14.45 4.0
52.03 1.4
6.95 15.4
7.08 ...
36.75 0.7
9.23 2.8
39.05 -0.4
20.26 3.0
75.29 10.3
1.95 -7.3
25.09 19.3
8.15 -3.2
0.36 ...
0.36 -2.9
25.75 -0.2
87.50 0.8
101.45 -0.3
29.00 9.8
134.45 ...
59.93 0.5
30.70 0.7
17.70 0.7
34.00 1.4
35.33 2.9
5.05 5.4
ADDvantage
AEY
Advaxis
ADXS
AlimeraSciences ALIM
AllianceData
ADS
AmElecTch
AETI
AmHomes4RentPfdE AMHpE
Ampco-Pitt
AP
AntheraPharm ANTH
ApolloInvNts2043 AIY
ApricusBiosci APRI
ArcusBiosci
RCUS
AsteriasBiotherap AST
Atento
ATTO
AxovantSciences AXON
AxsomeTherap AXSM
B&G Foods
BGS
BRF
BRFS
Biocept
BIOC
Birks
BGI
BluerockResPfD BRGpD
BrightSphereNts31 BSA
BroadwindEnergy BWEN
Brown&Brown BRO
CSS Industries CSS
CalitheraBiosci CALA
CedarRealtyPfB CDRpB
CescaTherap
KOOL
CharterComms CHTR
ChipMOSTechs IMOS
CloudPeakEnergy CLD
ConsldComm CNSL
CorpAmAirports CAAP
DDR PfdK
DDRpK
Danaos
DAC
DentsplySirona XRAY
DiffusionPharm DFFN
Digimarc
DMRC
DiversicareHlthcr DVCR
DominionEnerMid DM
DowDuPont
DWDP
ECA Marcellus ECT
ACADIA Pharm ACAD 21.81 -2.8 EP Energy
EPE
ActiniumPharm ATNM 0.35 -2.0 EPR PropPfdG EPRpG
Acxiom
ACXM 18.60 -19.0 EchoStar
SATS
Medifast
MED
Movado
MOV
Napco Security NSSC
Neogen
NEOG
OPBancorp
OPBK
PFSweb
PFSW
PagSeguroDig PAGS
ParTechnology PAR
Pfenex
PFNX
Plantronics
PLT
PlayAGS
AGS
Quidel
QDEL
QuorumHealth QHC
RadNet
RDNT
Seacor
CKH
SharpSpring
SHSP
SotherlyHotels SOHO
SoundFinBancorp SFBC
SunRun
RUN
Surmodics
SRDX
TechTarget
TTGT
TexasCapWt
TCBIW
TheStreet
TST
TitanMachinery TITN
TownSports
CLUB
UnionAcqnRt LTNr
UnionAcqnWt LTN/WS
UtdCmntyBcp UCBA
UsanaHealth USNA
UtahMedProducts UTMD
Vicor
VICR
WD-40
WDFC
Walker&Dunlop WD
WellesleyBancorp WEBK
Wendy's
WEN
WeycoGroup WEYS
WillisLease
WLFC
XenonPharms XENE
Lows
1.28
1.66
1.01
205.61
0.95
24.63
8.85
0.30
25.24
0.38
14.81
1.40
7.60
1.32
2.05
23.43
6.67
0.25
1.01
20.84
23.65
2.14
25.16
17.28
6.25
22.80
1.92
303.78
15.63
2.76
10.72
11.87
22.17
1.24
49.60
0.54
23.90
7.16
14.85
62.31
1.71
1.26
22.36
52.08
-1.5
-3.4
-1.0
-4.1
-8.3
0.6
-1.7
4.1
0.3
2.0
-3.6
-3.3
-4.3
-1.5
4.3
-2.5
3.3
-7.8
-3.0
0.1
-0.8
...
-0.3
-1.0
-4.5
-0.5
1.5
1.6
...
-9.3
1.4
3.4
-0.4
...
0.7
-3.4
-3.2
-0.2
...
2.1
-8.7
5.5
0.3
0.3
Verizon
VZ 47.82
VertxPharm VRTX 162.98
Viacom A VIA 39.60
Viacom B VIAB 31.06
Vipshop
VIPS 16.62
VirtuFinancial VIRT 33.00
VistraEnergy VST 20.83
VMware
VMW 121.27
Vodafone VOD 27.82
VornadoRealty VNO 67.30
VoyaFinancial VOYA 50.50
VulcanMatls VMC 114.17
EdgeTherap
EDGE
EnzoBiochem ENZ
EuroTech
CLWT
EuronetWorldwide EEFT
FTD
FTD
FedAgricMtgPfdB AGMpB
Ferrellgas
FGP
ForesightEnergy FELP
ForwardPharma FWP
GabelliUtilityRtWi GUTrw
GameStop
GME
GlobalPtnrs
GLP
GlobusMaritime GLBS
Gogo
GOGO
GoldenStarRscs GSS
GreentreeHospital GHG
GulfIslandFab GIFI
HamiltonBeach HBB
HeatBiologics HTBX
HillmanGroupPfd HLMp
HimaxTechs
HIMX
IDT
IDT
ImperialOil
IMO
InspireMD
NSPR
IntegratedMedia IMTE
InternetGold
IGLD
KimcoRealtyPfdM KIMpM
LandmarkInfrPfdA LMRKP
Lazydays
LAZY
Libbey
LBY
LibertyLatAmA LILA
LibertyLatAmC LILAK
LibertyOilfield LBRT
LifewayFoods LWAY
MatinasBioPharma MTNB
MelintaTherap MLNT
MicrobotMed MBOT
MilestoneSci
MLSS
Mind CTI
MNDO
MYndAnalytics MYND
NanoDimension NNDM
NatlCineMedia NCMI
NaviosMaritimPf NMpG
NaviosMariPfdH NMpH
NaviosMaritime NM
Neovasc
NVCN
Netlist
NLST
Netshoes
NETS
NexGenEnergy NXE
OneStopSystems OSS
OrchidsPaper TIS
OriginAgritech SEED
1.12 -9.9
5.35 0.9
2.50 -11.0
74.65 2.6
3.63 -2.2
25.93 0.7
2.87 4.0
3.38 0.6
2.02 -21.9
0.13 -14.2
12.20 -10.8
15.20 ...
0.71 -11.8
8.45 0.5
0.58 -1.5
12.28 -2.1
6.90 0.7
21.02 -2.1
1.63 -4.1
29.63 -8.0
5.97 0.7
5.94 -4.6
25.91 1.3
0.99 -23.0
3.19 -5.6
5.00 -14.0
21.93 0.4
24.50 0.6
9.46 -0.5
4.87 -9.6
19.00 -1.1
18.65 -1.1
16.00 4.1
5.91 -0.8
0.71 -3.2
7.30 -1.0
0.66 -2.2
0.70 -5.9
2.19 -3.9
1.15 -11.9
1.80 1.6
5.11 -3.2
12.18 -10.8
12.10 -7.4
0.86 0.9
0.05 -49.2
0.21 -4.7
4.59 -4.7
1.68 -1.7
4.40 -6.2
8.15 -3.1
0.74 -4.0
-0.18
3.40
0.70
0.58
0.42
0.48
-0.30
1.32
0.15
-0.22
0.43
2.87
W X Y Z
WABCO
WBC 133.87
WEC Energy WEC 62.70
WEX
WEX 156.62
W.P.Carey WPC 61.99
WPP
WPP 79.55
Wabtec
WAB 81.40
WalgreensBoots WBA 65.47
Walmart
WMT 88.97
WasteConnections WCN 71.74
WasteMgt WM 84.12
Waters
WAT 198.65
Watsco
WSO 180.97
Wayfair
W 67.53
Weibo
WB 119.54
WellCareHealth WCG 193.63
WellsFargo WFC 52.41
Welltower WELL 54.43
WestPharmSvcs WST 88.29
WestarEnergy WR 52.59
WestAllianceBcp WAL 58.11
WesternDigital WDC 92.27
WesternGasEquity WGP 33.12
WesternGasPtrs WES 42.67
WesternUnion WU 19.23
WestlakeChem WLK 111.15
WestpacBanking WBK 22.18
WestRock WRK 64.17
Weyerhaeuser WY 35.00
WheatonPrecMet WPM 20.37
Whirlpool WHR 153.11
Williams
WMB 24.86
WilliamsPartners WPZ 34.43
WillisTowers WLTW 152.19
Wipro
WIT 5.16
WooriBank WF 41.37
Workday
WDAY 127.11
Worldpay WP 82.24
Wyndham WYN 114.43
WynnResorts WYNN 182.36
XPO Logistics XPO 101.81
XcelEnergy XEL 45.48
Xerox
XRX 28.78
Xilinx
XLNX 72.24
Xylem
XYL 76.92
YPF
YPF 21.62
YY
YY 105.20
Yandex
YNDX 39.45
YumBrands YUM 85.13
YumChina YUMC 41.50
ZTO Express ZTO 14.99
ZayoGroup ZAYO 34.16
ZebraTech ZBRA 139.19
Zillow A
ZG 54.00
Zillow C
Z
53.80
ZimmerBiomet ZBH 109.04
ZionsBancorp ZION 52.73
Zoetis
ZTS 83.51
52-Wk %
Sym Hi/Lo Chg Stock
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
in the latest session. % CHG-Daily percentage change from the previous trading session.
Net
Sym Close Chg
Stock
0.17 Telefonica TEF 9.87 0.09
0.54 TelekmIndonesia TLK 26.42 0.18
5.77 Tenaris
TS 34.67 1.11
0.03 Teradyne
TER 45.71 0.88
6.87 t Tesla
TSLA266.13 8.35
0.33 TevaPharm TEVA 17.09 0.05
4.86 TexasInstruments TXN 103.89 1.98
2.99 Textron
TXT 58.97 1.37
0.79 ThermoFisherSci TMO 206.46 0.54
-1.56 ThomsonReuters TRI 38.65 0.12
0.07 ThorIndustries THO 115.17 2.78
0.53 3M
MMM 219.52 2.98
1.39 Tiffany
TIF 97.66 -0.37
1.07 TimeWarner TWX 94.58 0.38
-0.30 Toll Bros
TOL 43.25 0.58
0.71 Torchmark TMK 84.17 0.47
-0.08 Toro
TTC 62.45 1.99
0.32 TorontoDomBk TD 56.85 0.75
2.25 Total
TOT 57.69 1.49
0.26 TotalSystem TSS 86.26 1.41
0.02 ToyotaMotor TM 130.37 1.00
1.75 TractorSupply TSCO 63.02 3.02
1.03 TransCanada TRP 41.31 1.06
0.70 TransDigm TDG 306.94 6.15
1.13 TransUnion TRU 56.78 0.26
2.45 Travelers
TRV 138.86 0.07
0.02 Trimble
TRMB 35.88 1.11
1.81 TripAdvisor TRIP 40.89 0.28
2.36 TurkcellIletism TKC 9.56 0.41
-0.01 TurquoiseHill TRQ 3.07 0.05
1.87 21stCenturyFoxA FOXA 36.69 0.81
0.38 21stCenturyFoxB FOX 36.37 0.87
1.52 Twitter
TWTR 29.01 0.56
0.14 TylerTech
TYL 210.96 4.69
2.95 TysonFoods TSN 73.19 0.26
0.03 UBS Group UBS 17.66 0.07
0.32 UDR
UDR 35.62 0.02
0.53 UGI
UGI 44.42 0.24
0.61 US Foods USFD 32.77 -0.17
1.48 USG
USG 40.42 0.04
0.21 UltaBeauty ULTA 204.27 -0.84
0.42 UltSoftware ULTI 243.70 6.06
0.94 UltraparPart UGP 21.62 0.61
0.58 UnderArmour A UAA 16.35 0.02
0.59 UnderArmour C UA 14.35 0.16 t
Unilever
UN 56.39 0.58
Unilever
UL 55.56 0.46
0.21 UnionPacific UNP 134.43 3.67
2.00 UnitedContinental UAL 69.47 1.56
...
3.56 UnitedMicro UMC 2.59
UPS 104.66 1.98
0.36 UPS B
UnitedRentals
URI
172.73
3.62
1.08
0.73 US Bancorp USB 50.50 0.43
X
35.19 1.65
0.87 US Steel
0.17 UnitedTech UTX 125.82 1.37
2.18 UnitedHealth UNH 214.00 -4.50
1.62 UniversalHealthB UHS 118.41 -2.97
1.07 UnumGroup UNM 47.61 0.32
VER 6.96 0.03
0.32 VEREIT
VFC 74.12 0.45
0.10 VF
VICI 18.32 0.05
0.26 t VICI Prop
V
119.62 2.63
0.25 Visa
0.28 VailResorts MTN 221.70 -2.03
VALE 12.72 0.27
0.76 Vale
1.18 ValeroEnergy VLO 92.77 2.49
0.24 VarianMed VAR 122.65 1.12
VEDL 17.57 0.34
... Vedanta
0.04 VeevaSystems VEEV 73.02 1.55
VTR 49.53 -0.14
3.58 Ventas
VRSN 118.56 2.16
1.88 VeriSign
0.53 VeriskAnalytics VRSK 104.00 2.24
New Highs and Lows | WSJ.com/newhighs
Stock
Net
Sym Close Chg
Stock
1.26
0.42
4.05
-0.17
-0.17
1.37
-2.12
1.20
0.56
0.94
0.08
4.88
2.39
4.45
3.36
0.93
-0.43
1.79
0.65
0.75
1.47
0.62
1.15
0.01
3.14
0.21
1.01
-0.02
0.30
1.94
0.08
-0.01
0.90
0.04
0.54
3.34
1.80
1.64
6.32
3.58
0.14
-0.07
0.89
1.11
0.21
3.93
0.20
0.88
0.78
0.35
0.72
3.24
0.59
0.33
0.88
0.56
2.51
52-Wk %
Sym Hi/Lo Chg
OutfrontMedia OUT
PacBiosciCA
PACB
ParkerDrilling PKD
ParkerVision
PRKR
PartnerComms PTNR
PA Reit Pfd B PEIpB
PetroQuestEner PQ
PioneerPwrSols PPSI
Pulmatrix
PULM
PurpleInnovation PRPL
RAIT Financial RAS
RaPharm
RARX
ReataPharm
RETA
RedViolet
RDVT
RegulusTherap RGLS
Resonant
RESN
resTORbio
TORC
RevenHousingREIT RVEN
RoadrunnerTrans RRTS
SafetyIncome SAFE
SapiensInt
SPNS
SaulCentersPfdD BFSpD
scPharm
SCPH
SenecaFoods A SENEA
SenesTech
SNES
SeresTherap
MCRB
Silicom
SILC
Smart&FinalStores SFS
SocketMobile SCKT
SolidBiosci
SLDB
SolitarioZinc
XPL
Starrett A
SCX
SteelPtrsPfdA SPLPpA
SuburbanPropane SPH
SunlandsOnline STG
SunstoneHotelPfE SHOpE
SuperiorIndsIntl SUP
TatTechnologies TATT
TVA Bds D
TVC
Tesla
TSLA
Tintri
TNTR
Tuniu
TOUR
UnionAcqn
LTN
VICI Prop
VICI
VeriFoneSystems PAY
Vivus
VVUS
WesternCopper WRN
WestmorelandCoal WLB
WestwaterRscs WWR
Williams
WMB
xGTechnology XGTI
XpresSpa
XSPA
YatraOnline
YTRA
18.47 0.3
2.03 -6.0
0.61 1.4
0.76 ...
4.59 -3.2
20.21 4.6
0.58 -15.8
4.75 -4.3
0.45 -30.3
8.22 -1.9
0.16 -12.7
5.03 0.2
19.31 2.6
5.05 6.5
0.63 -1.4
3.17 -2.7
9.35 -9.3
2.65 -1.0
2.54 -3.1
15.64 0.7
8.48 -2.1
23.17 -0.6
11.11 6.7
27.60 -2.3
0.50 -7.3
7.31 -1.1
32.00 2.7
5.20 -1.8
2.92 0.3
6.83 4.3
0.44 1.3
6.70 -1.5
20.30 1.1
21.85 0.4
8.25 -13.3
24.96 0.4
13.25 -1.5
8.20 -3.6
24.58 -1.2
248.21 3.2
1.70 -6.6
5.81 2.6
9.58 -0.2
17.86 0.3
15.37 -0.5
0.35 -3.4
0.77 1.3
0.36 11.6
0.51 7.5
24.59 0.3
0.66 -19.4
0.71 -11.1
5.63 10.0
Dividend Changes
Dividend announcements from March 29.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
Banner
Friedman Industries
FS Bancorp
Nasdaq
Oxford Industries
BANR
FRD
FSBW
NDAQ
OXM
2.5
0.7
1.0
2.0
1.8
.35 /.25
.02 /.01
.14 /.11
.44 /.38
.34 /.27
Q
Q
Q
Q
Q
Apr19 /Apr10
May25 /Apr27
May14 /Apr30
Jun29 /Jun15
May04 /Apr20
Stocks
Cemtrex 10% Pfd.
5.00%
CETXP
Apr05 /Apr02
Foreign
China Mobile ADR
China Petroleum ADR
Net YTD
NAV Chg % Ret Fund
11.97 +0.01
26.51 +0.17
FrankTemp/Temp Adv
GlBondAdv p 11.92 +0.01
Harbor Funds
CapApInst
72.44 +1.40
67.13 +0.68
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.69 +0.09
EqIncA
John Hancock Class 1
NA
...
LSBalncd
LSGwth
NA
...
John Hancock Instl
23.22 +0.29
DispValMCI
JPMorgan Funds
39.59 +0.45
MdCpVal L
JPMorgan R Class
11.38 +0.02
CoreBond
Lazard Instl
20.43 +0.30
EmgMktEq
Lord Abbett A
ShtDurIncmA p
NA
...
Lord Abbett F
NA
...
ShtDurIncm
Metropolitan West
NA
...
TotRetBd
NA
...
TotRetBdI
NA
...
TRBdPlan
MFS Funds Class I
39.42 +0.42
ValueI
MFS Funds Instl
IntlEq
25.11 +0.16
Mutual Series
30.92 +0.18
GlbDiscA
Oakmark Funds Invest
31.67 +0.28
EqtyInc r
CHL
SNP
11.5
1.00817
5.09814 SA
Net YTD
NAV Chg % Ret Fund
1.4 Oakmark
83.59
-2.8 OakmrkInt
27.78
Old Westbury Fds
1.4 LrgCpStr
14.40
Oppenheimer Y
4.3 DevMktY
44.22
-0.6 IntGrowY
43.69
Parnassus Fds
NA ParnEqFd
42.40
PIMCO Fds Instl
-2.1 AllAsset
NA
10.08
TotRt
NA PIMCO Funds A
NA IncomeFd
NA
PIMCO Funds Instl
-0.4 IncomeFd
NA
PIMCO Funds P
-1.7 IncomeP
NA
Price Funds
-1.1 BlChip
101.80
28.40
CapApp
2.0 EqInc
32.47
70.85
EqIndex
NA Growth
65.05
HelSci
71.30
NA InstlCapG
38.74
18.72
IntlStk
NA IntlValEq
14.94
NA MCapGro
90.55
NA
30.20
MCapVal
N Horiz
55.85
-3.0
9.29
N Inc
11.28
OverS SF r
-1.4
NA
R2020
NA
R2025
-2.8
R2030
NA
NA
R2035
-1.6
NA
R2040
Jul09 /May24
Jun21 /May25
Company
China Unicom HK ADR
Diana Ship 8.875 Pfd B
Embotell Andina A ADR
Embotell Andina B ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
CHU
DSXpB
AKO.A
AKO.B
AVAL
AVAL
AVAL
AVAL
AVAL
AVAL
Amount
Yld % New/Old Frq
0.6
9.1
3.3
3.2
4.2
4.2
4.2
4.2
4.2
4.2
.0826
.55469
.21167
.23284
.02878
.02878
.02878
.02878
.02878
.02878
A
Q
Q
Q
M
Payable /
Record
Jun22 /May16
Apr16 /Apr13
/May25
/May25
Apr16 /Apr09
May09 /May01
Jun11 /May31
Aug09 /Jul31
Jul11 /Jul02
Sep11 /Aug31
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
36.53 +0.43
+1.28 -0.9 Value
+0.18 -2.8 PRIMECAP Odyssey Fds
AggGrowth r 49.44 +0.54
40.25 +0.51
+0.17 -0.4 Growth r
Principal Investors
NA
...
+0.62 3.0 DivIntlInst
+0.29 0.2 Prudential Cl Z & I
NA
...
TRBdZ
+0.36 -0.3 Schwab Funds
40.87 +0.55
S&P Sel
... NA TIAA/CREF Funds
19.52 +0.26
EqIdxInst
+0.01 -1.3
IntlEqIdxInst 20.02 +0.17
Tweedy Browne Fds
... NA
27.89 +0.04
GblValue
VANGUARD ADMIRAL
... NA
243.81 +3.32
500Adml
34.23 +0.29
BalAdml
... NA
CAITAdml
11.58
...
CapOpAdml r 156.27 +2.25
+1.79 5.7
EMAdmr
38.90 +0.44
+0.19 0.4 EqIncAdml
75.57 +0.91
+0.39 -2.2 ExplrAdml
92.10 +1.38
+0.96 -0.8 ExtndAdml
84.64 +1.04
+1.01 3.8 GNMAAdml
10.27 +0.01
+0.54 1.4 GrwthAdml
73.02 +1.18
+0.58 5.0 HlthCareAdml r 84.70 -2.00
+0.21 0.3 HYCorAdml r
5.76
...
+0.09 -1.2 InfProAd
25.28 +0.04
+1.04 4.1 IntlGrAdml
98.85 +1.33
+0.30 -0.7 ITBondAdml 11.06 +0.02
+0.87 6.2 ITIGradeAdml 9.50 +0.02
+0.02 -1.4 LTGradeAdml 10.04 +0.01
+0.09 -0.3 MidCpAdml 190.95 +2.56
11.22 +0.01
... NA MuHYAdml
13.88 +0.01
... NA MuIntAdml
11.41 +0.01
... NA MuLTAdml
10.82
...
... NA MuLtdAdml
15.70
...
... NA MuShtAdml
Symbol
Net YTD
NAV Chg % Ret Fund
-2.1 PrmcpAdml r 135.78
RealEstatAdml 106.97
11.5 SmCapAdml 70.42
8.1 STBondAdml 10.28
STIGradeAdml 10.51
NA TotBdAdml
10.52
TotIntBdIdxAdm 21.84
NA TotIntlAdmIdx r 30.30
66.05
TotStAdml
-0.8 TxMIn r
14.20
40.22
ValAdml
-0.7 WdsrllAdml
65.16
-0.7
WellsIAdml
63.29
70.80
WelltnAdml
-2.1
WndsrAdml
78.59
VANGUARD FDS
-0.8
DivdGro
25.97
-0.9
200.85
HlthCare r
-1.1
22.40
INSTTRF2020
1.7
2.1 INSTTRF2025 22.73
-2.5 INSTTRF2030 22.99
4.2 INSTTRF2035 23.24
0.2 INSTTRF2040 23.49
-1.1 INSTTRF2045 23.67
39.63
1.2 IntlVal
19.76
0.2 LifeCon
33.48
-1.5 LifeGro
26.98
-0.9 LifeMod
26.85
3.4 PrmcpCor
29.92
-2.0 SelValu r
-1.8 STAR
26.75
-4.5 STIGrade
10.51
... TgtRe2015
15.25
-1.0 TgtRe2020
31.20
-1.1 TgtRe2025
18.39
-1.4 TgtRe2030
33.44
-0.2 TgtRe2035
20.57
0.3 TgtRe2040
35.58
+2.02
-0.08
+0.85
+0.01
+0.01
+0.02
...
+0.30
+0.88
+0.14
+0.45
+0.77
+0.36
+0.56
+0.95
1.6
-8.1
-0.2
-0.5
-0.5
-1.5
0.9
-0.5
-0.6
-1.1
-2.3
-2.9
-2.4
-1.9
-0.5
-0.04
-4.70
+0.15
+0.18
+0.20
+0.22
+0.24
+0.26
+0.34
+0.10
+0.32
+0.20
+0.38
+0.30
+0.24
+0.01
+0.09
+0.21
+0.15
+0.29
+0.19
+0.37
-1.1
0.2
-0.6
-0.6
-0.6
-0.6
-0.6
-0.5
-0.6
-0.7
-0.6
-0.6
-0.2
-4.3
-0.2
-0.6
-0.5
-0.6
-0.6
-0.6
-0.6
-0.5
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg % Ret
22.37 +0.24
36.00 +0.38
13.44 +0.06
10.92
...
26.13 +0.15
41.00 +0.33
36.72 +0.44
VANGUARD INDEX FDS
243.81 +3.32
500
208.86 +2.55
ExtndIstPl
55.60 +0.61
SmValAdml
10.48 +0.01
TotBd2
18.11 +0.17
TotIntl
66.03 +0.88
TotSt
VANGUARD INSTL FDS
34.24 +0.30
BalInst
DevMktsIndInst 14.22 +0.14
DevMktsInxInst 22.22 +0.21
84.63 +1.03
ExtndInst
73.03 +1.18
GrwthInst
10.30 +0.02
InPrSeIn
240.63 +3.28
InstIdx
InstPlus
240.64 +3.28
58.71 +0.78
InstTStPlus
MidCpInst
42.18 +0.56
208.04 +2.80
MidCpIstPl
SmCapInst
70.42 +0.86
SmCapIstPl 203.26 +2.47
STIGradeInst 10.51 +0.01
10.52 +0.02
TotBdInst
TotBdInst2
10.48 +0.01
10.52 +0.02
TotBdInstPl
TotIntBdIdxInst 32.77
...
TotIntlInstIdx r 121.16 +1.19
TotItlInstPlId r 121.18 +1.19
66.06 +0.88
TotStInst
40.22 +0.46
ValueInst
Western Asset
NA
...
CorePlusBdI
-0.6
-0.6
-0.5
0.9
-2.4
-1.9
-2.9
-0.8
0.2
-2.1
-1.6
-0.5
-0.6
-0.9
-1.1
-1.1
0.2
1.2
-0.9
-0.8
-0.8
-0.6
...
...
-0.2
-0.2
-0.5
-1.5
-1.6
-1.5
0.9
-0.5
-0.4
-0.6
-2.3
NA
.
THE WALL STREET JOURNAL.
B10 | Friday, March 30, 2018
BANKING & FINANCE
Barclays CEO Jes Staley
first-quarter results and that
its already-announced 2018
dividend of 6.5 pence (9.2
cents) remains unchanged.
Barclays shares closed 0.2%
higher in London.
The two former Barclays executives agreed to $2 million
in combined penalties, Paul
Menefee and John Carroll, said
through statements from their
lawyers that the allegations
were baseless, noting that they
didn’t admit to wrongdoing.
Both men left Barclays in
2008. A person familiar with
the matter said Barclays, not
the individuals, paid their penalties.
“Throughout his career, Mr.
Carroll has worked honestly
and honorably in the interests
of his employers and investors,
and now, he looks forward to
putting this experience behind
him,” according to a statement
Thursday from Mr. Carroll’s
lawyer.
“Mr. Menefee worked tirelessly, diligently and in good
faith at all times on behalf of
Barclays and its investors,” according to a statement from
his lawyer. It said Mr. Menefee
settled “solely to put this matter behind him.”
For Barclays, the mortgage
settlement removes one of
several big legal worries hanging over the bank and Mr. Staley. He is awaiting the outcome
of a long-running investigation
by the U.K.’s Financial Conduct
Authority into his efforts to
reveal the identity of a whistleblower. The resolution of
that probe initially was expected by the end of 2017, people close to the matter said
last year. Mr. Staley has apologized for his handling of the
whistleblower complaint.
The mortgage settlement
announced Thursday capped
prolonged on-and-off discussions between the bank and
Justice Department that
spanned two presidential administrations. At first, some
Barclays investors worried
that a protracted legal battle
could result in a worse deal
than the lender initially faced.
Mr. Staley was vocal about refusing to accept what he considered an unfair penalty.
—Adam Clark
and Aruna Viswanatha
contributed to this article.
Heard on the Street: Barclays
settlement is a relief. ........ B12
SEONGJOON CHO/BLOOMBERG NEWS
Barclays PLC agreed to pay
$2 billion in civil penalties to
resolve U.S. Justice Department claims that the U.K.
lender fraudulently sold mortgage securities that helped
fuel the financial crisis, causing investors “enormous
losses,” the government said
Thursday.
Two former Barclays executives also agreed to $2 million
in civil penalties to resolve individual claims, the Justice Department said.
The agreements came 15
months after the Justice Department took the unusual
step of suing Barclays over the
allegations. Barclays sought to
have the suit dismissed, calling
the claims “disconnected from
the facts.” Within hours of
when that December 2016 lawsuit was filed, the government
separately agreed to multibillion-dollar settlements with
two other European lenders,
Credit Suisse Group AG and
Deutsche Bank AG, in parallel
mortgage-backed securities
probes.
The Justice Department’s
civil action against Barclays
accused the bank of causing
billions of dollars in losses to
investors in deals involving
more than $30 billion of mortgage securities from 2005 to
2007. The bank “systematically
and intentionally misrepresented key characteristics of
the loans,” including the credit
weakness of borrowers, lead-
ing to higher-than-expected
default rates, according to the
government.
The 2016 lawsuit didn’t
quantify the damages it sought
from the bank. At the time,
Barclays was being asked to
pay around $5 billion, The
Wall Street Journal reported
at the time, citing a person familiar with the matter. A portion of that proposed amount
likely would have been in consumer relief such as loan modifications.
In the end, Barclays’s settlement is solely a financial penalty, with no additional
amount for consumer relief.
Last year, Attorney General
Jeff Sessions said the Justice
Department would no longer
include provisions in corporate
settlements that require payments to third parties not directly involved in legal disputes.
“I am pleased that we have
been able to reach a fair and
proportionate
settlement,”
Barclays Chief Executive Officer Jes Staley said in a statement Thursday.
“Today’s settlement holds
accountable those who waste,
steal or abuse funds” overseen
by the Federal Housing Finance
Agency,
Laura
Wertheimer, the agency’s inspector general, said in a joint
statement with the Justice Department.
The agreement didn’t include an admission of wrongdoing. The bank said it would
recognize the penalty in its
Youbit says it lost 17% of its total assets in the cyberattack last year. Prices on the rival Bithumb exchange in early February.
Insurer Rejects Claim for Cyberheist
BY EUN-YOUNG JEONG
SEOUL—A South Korean insurance company denied a
claim by a cryptocurrency exchange that suffered a cyberattack in December, the exchange operator said.
That month, Seoul-based
Youbit was hacked for the second time in eight months, losing an unspecified amount it
said represented 17% of its total assets. Youbit’s operating
company, Yapian Corp., filed a
claim with DB Insurance Co.,
one of South Korea’s four biggest property-and-casualty in-
surers, under a policy that had
taken effect just weeks before.
It covered up to $2.8 million
in damages for an annual premium of about $244,400.
A spokesman for DB Insurance confirmed Thursday that
the company had rejected Yapian’s claim, for the maximum
$2.8 million, in early February.
He declined to disclose a reason.
Yapian said DB Insurance
had accused it of trying to
rush getting its insurance and
failing to disclose important
information while negotiating
the policy. Yapian denies this,
Comforting Spread
The premium global investors pay to swap their currencies for U.S.
dollars has decreased significantly this year, even as U.S. borrowing
costs have risen.
Three-month cross-currency basis swaps
Sterling
Euro
0 points
–0.5
–1.0
2013
’14
’15
’16
’17
’18
Short-term dollar borrowing costs have risen more rapidly in the past
six months, but costs in other currencies haven’t reacted.
Three-month London interbank offered rate
2%
U.S. dollar
Yen
Euro
1
0
–1
2013
’14
’15
Sources: Thomson Reuters (swaps); FactSet (Libor)
’16
’17
’18
THE WALL STREET JOURNAL.
saying DB Insurance is using it
as an excuse not to cover the
loss.
DB declined to comment on
whether it had made those accusations.
Security has become a concern for the nascent cryptocurrency industry, which is
facing tightened regulations
around the world, including in
the U.S. This month, Japanese
regulators shut down two exchanges, citing weak procedures to protect customers’
assets.
In South Korea, a cryptocurrency hotbed, few regula-
tions protect investors. In February, prosecutors raided
three exchanges in Seoul as
part of an investigation into
alleged embezzlement. Last
year, the government fined
BTC Korea.Com Co., operator
of cryptocurrency exchange
Bithumb, after a hack compromised the personal information of thousands of its users.
Yapian, which is being acquired by another domestic
digital-currency trading firm,
Coinbin, said it had intended
to use the insurance payment
to compensate customers for
losses from the cyberheist.
SIMON DAWSON/BLOOMBERG NEWS
BY JENNY STRASBURG
SIMON DAWSON/BLOOMBERG NEWS
Barclays Penalty: $2 Billion
Buying NEX will make CME a critical player in trading Treasurys.
CME’s Duffy Returns
To Deal-Making Days
With NEX Purchase
BY ALEXANDER OSIPOVICH
AND PHILIP GEORGIADIS
Terrence Duffy spearheaded
a series of deals that turned
CME Group Inc. into the
world’s biggest exchange operator. On Thursday, the chairman
and chief executive showed he
is still in the game with a $5.4
billion agreement to acquire
the U.K.’s NEX Group PLC.
The deal is poised to
strengthen CME’s dominance in
the exchange business, which
has become consolidated in recent years. The company’s market capitalization is $53.7 billion, while its next-biggest rival,
Intercontinental Exchange Inc.,
is $41.7 billion.
The NEX acquisition is expected to be completed in the
second half of 2018, subject to
approval by regulators and
NEX shareholders, the two
companies said.
In an interview, Mr. Duffy,
59 years old, said the deal took
shape during a series of
lunches and dinners with NEX
Group CEO Michael Spencer in
New York restaurants, lubricated by French wine.
“A lot of the discussions
happened over a nice glass of
red,” Mr. Duffy said, adding
that he had let Mr. Spencer—
one of Britain’s richest men
and a famed bon vivant who
has invested in fine-wine businesses—choose the bottle. “Me
being from the South Side of
Chicago, I have no idea what it
is and I just drink it,” Mr.
Duffy said.
A spokeswoman for NEX
Group declined to comment.
A former floor trader, Mr.
Duffy used political savvy to
rise to the top of the Chicago
Mercantile Exchange, which became a publicly traded company in 2002. As chairman, he
oversaw tie-ups with crosstown
rival Chicago Board of Trade,
the New York Mercantile Exchange and the Kansas City
Board of Trade. Those deals
turned CME into an exchange
giant with markets ranging
from energy to wheat to gold.
The firm ruffled feathers
along the way. CME faces a
long-running antitrust lawsuit,
which was filed nearly 15 years
ago and is set to go to trial in
June, from a subsidiary of Germany’s Eurex exchange. Eurex
contends that its effort to
break into U.S. Treasury futures in 2003 was foiled by collusion between CME and CBOT.
CME denies the allegations.
Buying NEX will make CME
a critical player in the trading
of U.S. government debt—the
world’s biggest bond market,
with $14.5 trillion of Treasury
securities outstanding. NEX
owns the largest electronictrading platform for Treasurys,
BrokerTec, at which an average
of $143 billion is traded daily,
according to the NEX website.
That complements CME’s
heavily traded U.S. interest-rate
futures, a closely related market
in which CME has an effective
monopoly. The firm cemented
that position through a previous deal led by Mr. Duffy, the
2007 merger of CME and CBOT.
Mr. Spencer stands to make
hundreds of millions of dollars
from the sale. He told reporters
Thursday that he would become
a “large and happy shareholder” in CME under the terms
of the cash-and-stock deal. He
will join the CME board and remain with the company as an
adviser, the companies said.
The 62-year-old Mr. Spencer
is one of the City of London’s
most high-profile figures and
has built himself a fortune and
significant political influence
Previous deals
by Mr. Duffy
made CME an
exchange giant
in markets
ranging from
energy to gold.
out of the expansion of the derivatives markets over the past
35 years.
In the 1980s, having been
fired from two previous jobs in
finance, he pulled together
$60,000 with three partners to
make a play on the increasing
demand for brokers to help
banks trade derivatives products.
The company he founded,
ICAP PLC, became one of the
world’s biggest participants in
the over-the-counter derivatives markets, built on a core
business of brokering trades
by telephone. But in 2016,
faced with technological shifts
in the markets, ICAP sold its
voice-brokering unit to rival
Tullett Prebon PLC. The remainder of ICAP rebranded itself as NEX Group and refocused on electronic trading.
Mr. Spencer was a prominent backer of the U.K.’s Conservative Party under its previous leader, former Prime
Minister David Cameron, and
was the party’s treasurer between 2006 and 2010.
ICAP’s charity days became
an iconic feature of the City of
London’s calendar, with celebrities manning the phones to
raise money for charity.
Cost to Borrow Dollars Is Shrinking
BY MIKE BIRD
While short-term U.S. borrowing costs have surged in
recent months, borrowers of
dollars abroad are unexpectedly getting some long-delayed relief.
The London interbank offered rate, or Libor, hit 2.3%
this week, up from 2% at the
end of February and 1.7% at
the end of 2017, sparking concerns about U.S. financial conditions even as the economy
remains strong.
The spread, or difference,
between Libor and the overnight index swap rate, which
is usually close to the federalfunds rate, also has risen. In
the past, that has been a sign
of funding stresses.
However, the cross-currency basis—a measure of the
expense of swapping another
currency
for
dollars—is
shrinking. Investors abroad
aiming to swap their euros
and yen for dollars for three
months are paying the lowest
premium since 2014.
Investors in sterling are
even better positioned. The
three-month sterling-dollar
Investors are paying
the lowest premium
since 2014 to swap yen
and euros for dollars.
cross-currency basis moved
into positive territory this
month, meaning that investors
are paying a premium to swap
dollars for British pounds.
Of course, those global investors still bear the costs of
rising U.S. interest rates, too.
But unlike domestic investors,
that rise is blunted by the nar-
rowing basis.
Libor is the interest rate at
which global banks lend to one
another and acts as the benchmark for $200 trillion in financial contracts around the
world.
To be sure, the use of crosscurrency swaps is often sensitive to seasonal effects. At the
end of last year, the basis blew
out as international banks
scrambled for dollars, and the
coming end of the first quarter may be playing a part in
the recent tightening.
Still, some analysts say the
lower premium for dollar borrowing abroad is a sign that
the climb in short-term U.S.
interest rates is not a sign of a
broader funding squeeze.
There is also no sign of an increase in funding costs in
three-month Libor rates in
other currencies.
“If it was a true funding
problem, I’d expect borrowers
to borrow anywhere they
could, driving up all spreads,
like we saw when there was an
actual crisis,” said Peter Tchir,
head of macro strategy at investment bank Academy Securities Inc. Mr. Tchir identifies several factors as drivers
for a move in the U.S. but not
elsewhere. U.S. tax repatriation is one of them.
“Much of the offshore
money was being lent out to
high-quality institutions for
relatively short amounts of
time. As those loans come due,
they are being shifted into either T-bills, deposits, or being
used to pay taxes or buy back
stocks,” said Mr. Tchir. As a
result, less money is available
in wholesale funding markets,
driving interest rates higher.
The narrowing of the crosscurrency basis could be due to
other U.S. tax changes, said
Credit Suisse Group AG analyst Zoltan Pozsar.
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | B11
* * * *
MARKETS
Tech Rout
Makes Day
Traders
Nervous
The selloff in technology
stocks is making a group of
usually bullish short-term investors nervous.
Day traders have been posting increasingly bearish messages on StockTwits, the popular messaging forum, data
from the company show.
An aggregate of messages
about seven big technology
stocks, weighted by volume,
shows just 54% were bullish,
down from nearly 90% at the
beginning of the year. Bearishness increased sharply over
that span.
That is one sign of just how
far-reaching the recent selloff
in technology stocks has been.
The views generally reflect
the broad investment landscape, where everyone from
hedge funds to retirees is rethinking their exposure to
these companies after years of
rapid stock-price growth.
In 2017, the average level of
bullishness on these seven
stocks was 75%, and never
dropped below 63%, according
to Garrett Hoffman, a data scientist at StockTwits.
The S&P 500 technology
sector climbed 37% that year,
and it is up another 1% in
2018.
But the S&P 500 was down
6% in the month of March as
of Wednesday. The index’s
technology sector dropped
0.9% on Wednesday, for its
ninth day of declines in 12 sessions.
Hot stocks that aren’t in the
S&P 500 technology sector,
but often associated with the
tech industry, fared the worst
in Wednesday’s session. Amazon.com shares dropped
4.4%, Netflix slid 5% and
Tesla tumbled 7.7%.
The sharp turnabout in recent sessions followed a growing controversy about Facebook’s handling of user data,
which sparked broader questions about whether the technology industry could face
heavier regulation.
On Wednesday, Amazon fell
amid speculation that the
White House wants to clamp
down on the e-commerce giant’s growing dominance.
The StockTwits measure of
bullishness dipped to the
mid-70s as stocks sold off in
February, rebounded a bit
along with the broader stock
market, and then plunged
again in recent days.
Bulls in Retreat
Share of StockTwits
messages about seven
tech stocks that are bullish
90%
85
80
75
2017 Avg.
70
65
60
55
50
January
February March
Note: Volume-weighted aggregate of
Facebook, Amazon, Apple, Netflix,
Alphabet, Twitter, Microsoft.
Source: StockTwits
THE WALL STREET JOURNAL.
STREET
Continued from page B1
banks and energy stocks in
2008 make awful precedents.
After the dot-com bust in
March 2000, the rise of
other sectors—financials,
health care, industrials and
energy—was able to offset
the effect of the plummeting
tech, media and telecom
stocks for six months. But it
didn’t last once it became
clear that the economy was
in trouble.
It is worrying that the
tech sector’s value reached
25% of the S&P’s value last
month for the first time
since the deflation of the
dot-coms. Yet in 2000, tech
peaked at 35% of the S&P,
and together with media and
telecoms made up more than
40%. Even with tech companies in other sectors added
in, today’s tech stocks are a
SAUDI ARAMCO/REUTERS
BY BEN EISEN
Saudi Aramco trucks ply the desert in search of oil. The state-owned company plans to list 5% of its shares on the kingdom’s Tadawul exchange.
Saudi Stocks Emerge to World
Shares to join a FTSE
index next year, helping
to grease the skids for
IPO of Saudi Aramco
BY NICOLAS PARASIE
Saudi Arabia’s stock market
will join a major emergingmarkets index for the first
time in 2019, in a move that is
set to channel billions of dollars in investment into the
kingdom.
Index compiler FTSE Russell said late Wednesday that
the kingdom’s exchange, the
Tadawul, will be classified as a
secondary emerging market in
March of next year, joining a
group of countries that includes Russia and China.
The Tadawul is set to have
a weight of 2.7% in the FTSE
Emerging Markets Index, but
that could rise to 4.6% if the
government proceeds with the
planned initial public offering
of 5% of state-owned Saudi
Arabian Oil Co., according to
the index compiler. With an
estimated $200 billion of assets tracking the index, Saudi
Arabia could attract $5.4 billion in investor funds, it said.
Mohammed El Kuwaiz,
chairman of Saudi Arabia’s
Capital Market Authority, said
the FTSE inclusion “represents
a point of nonreversal” for the
Saudi market.
“Once you open up the door
to foreign investors, I think
there’s only one direction you
can move in, the direction of
accommodating more investors and an increasing level of
standards for our market to
compete for that capital,” Mr.
El Kuwaiz said in an interview
in New York on Wednesday.
The Saudi stock market
closed slightly lower Thursday
after rising nearly 10% this
year ahead of the announcement.
The inclusion of the Arab
world’s largest stock market,
with a market capitalization of
about $500 billion in listed
shares, marks a welcome
boost for the Saudi government’s
economic-overhaul
plans, which include opening
up the country to foreign investors to reduce its dependence on oil revenue.
The Persian Gulf’s major oil
exporters have introduced
some far-reaching and often
painful overhauls in the past
few years, such as scrapping
energy subsidies and raising
taxes to cope with the drop in
oil revenue.
Saudi Crown Prince Mohammed bin Salman, who is
spearheading the revamp, is
touring the U.S., touting potential investment opportunities in the kingdom to business leaders from New York to
Silicon Valley.
His visit comes weeks after
scores of Saudi businessmen
and officials were released
from detention in a luxury hotel in Riyadh, as part of what
the government described as a
crackdown on corruption.
Those events startled some
foreign investors.
Tadawul executives and
other officials have spent
more than a year meeting with
international investors in the
U.S., Europe and Asia to discuss the Saudi market and the
changes they have been making to attract more foreign investment.
Boosting investment in
Tadawul-listed companies may
help pave the way for a domestic offering of the stateowned oil company, known as
Saudi Aramco, one of the central pillars of the kingdom’s
economic overhaul.
Aramco’s IPO preparations
have been slowed down by
concerns over where to list.
Saudi officials have said that
the Tadawul is the one venue
where Aramco will list its
shares.
Mr. El Kuwaiz said listing
Aramco on the Tadawul and
other privatizations of stateowned companies will give the
exchange the opportunity “to
become the main capital market for the Middle East and
hopefully one of the main capital markets in the world.”
The FTSE inclusion could
be a prelude to a potentially
bigger market classification
upgrade pursued by the
Tadawul. MSCI Inc., another
index firm, will decide in June
whether to add Saudi Arabia
to
its
emerging-markets
benchmark, which could attract additional billions of dollars in funds.
Both the Tadawul and the
Capital Market Authority have
been making changes to ensure they meet the criteria for
these upgrades.
The stock exchange implemented a new settlement cycle
and gradually lifted restrictions on foreign ownership of
Saudi stocks.
—Maureen Farrell
contributed to this article.
Dow, S&P 500 Rise but End Quarter Lower
BY MICHAEL WURSTHORN
AND RIVA GOLD
The Dow Jones Industrial
Average rose more than 250
points Thursday as investors
sought to take advantage of depressed valuations among some
of the marTHURSDAY’S ket’s
most
MARKETS
sought-after
technology
stocks.
Investors bought shares of
companies including Facebook, Google parent Alphabet,
Nvidia and Amazon.com on
the final trading day of the
quarter ahead of the Good Friday holiday.
The rally helped cut the
blue-chip index’s quarterly
loss—its first in more than
two years—to 2.5%.
The index rose as much as
466 points earlier in the session before paring gains in the
final hour of trading. The damage from two months of uncertainty over how rising interest
rates will affect stock prices
and the ramifications of trade
tariffs, along with doubts
whether shares of technology
companies can continue to
lead major indexes higher,
smaller proportion.
There have been plenty of
smaller rotations between
sectors that had little effect
on the wider market. Biotechnology stocks—together
valued at more than $1 trillion at their peak—quadrupled in the four years to
2015, before falling more
than one-third in a year, and
the wider market barely noticed. But the S&P’s tech sector alone is more than six
times as big, and the wider
Nasdaq Composite Index
more than 10 times.
B
ig losses could pose a
threat to the economy,
as in 2000. The Federal Reserve hoped buying
bonds would boost consumer
spending via what economists call the “wealth effect,” by increasing the value
of investors’ portfolios, but
had mixed results. Perhaps a
“loss-of-wealth” effect will
be equally weak, but I sus-
proved too severe to overcome.
The S&P 500 fell 1.2% for
the quarter, the first time in
10 quarters that either the
S&P 500 or Dow posted a loss
for a three-month period. The
Nasdaq Composite, meanwhile,
rose 2.3%, its weakest gain
since the last quarter of 2016.
Investors’ willingness to
buy stocks that have fallen
sharply has helped to avoid
exacerbating the market selloff over the past two months.
And several money managers
said the return of volatility,
along with worries of an economic slowdown, has elevated
the strategy of picking individual stocks rather than broadly
investing in an index.
“These are the drops you
wait for,” said John Thomas,
chief investment officer of
Global Wealth Management, a
Fort Lauderdale, Fla.-based financial-advisory firm that manages $350 million. “If you don’t
own some of these great growth
names, you should be looking at
them as they come down.”
That helped the broad S&P
500 add 35.87 points, or 1.4%,
to 2640.87 on Thursday, while
the Nasdaq Composite gained
114.22 points, or 1.6%, to
pect losses are a stronger influence on spending than
gains.
One way to think of recessions is that they happen
when assets have been misallocated on a large scale
and can’t be reallocated
quickly to maintain growth.
The same is true for bear
markets, which are a painful
way of reallocating what is
left of investors’ capital. We
should hope that the premise
for Amazon’s valuation of
175 times this year’s estimated earnings isn’t horribly
mistaken
For now, the rotation remains small, and it isn’t hard
to imagine the tech damage
being limited to just a few
company-specific problems.
But if the highflying stocks
that led the market up keep
on falling, it will be hard to
offset, particularly when
doubts are already being
voiced about global economic growth.
A Wild Ride
The S&P 500 surged in January before falling into correction territory
for the first time in two years on Feb. 8 as market volatility roared back.
Year-to-date performance
10%
8
6
4
2
S&P 500
tech sector
0
S&P 500
–2
S&P 500
financials
sector
–4
–6
S&P 500
energy
sector
–8
January
February
Source: FactSet
7063.44. The Dow rose 254.69
points, or 1.1%, to 24103.11.
However, technology’s recent stumble, is a reminder to
avoid the risk of overexposure
to those stocks. “You don’t
want them taking over such a
large part of your portfolio
that you end up overweight,”
Mr. Thomas added.
On Thursday, shares of
technology companies in the
March
THE WALL STREET JOURNAL.
S&P 500 rose 2.2% to lead the
market higher, the sector’s
first gain in three trading sessions, as investors temporarily
shook off concerns of how
lawmakers may try to impose
new regulations to better protect the mountain of user data
held by social-media firms.
Shares of Facebook rose
$6.76, or 4.4%, to $159.79, cutting its monthly loss to 10%,
while Alphabet added 31.96, or
3.2%, to 1,037.14. Tesla rose
8.35, or 3.2%, to 266.13, and
Nvidia, which declined earlier
this week after it temporarily
suspended testing of its driverless-car technology, added
10.24, or 4.6%, to 231.59.
Shares of Amazon added
15.92, or 1.1%, to 1447.34.
In early Asian trading Friday, Japan’s Nikkei was up 1%,
while Hong Kong’s Hang Seng
rose 0.2%
Treasury Auctions
The U.S. Treasury Department
will auction $90 billion in securities next week. Details (all with
minimum denominations of
$100):
Monday: $48 billion in 13week bills, a reopening of an issue first sold on Jan. 4, 2018,
maturing July 5, 2018. Cusip
number: 912796PN3.
Also, $42 billion in 26-week
bills, dated April 5, 2018, maturing Oct. 4, 2018. Cusip number:
912796QB8.
Noncompetitive tenders for
both issues must be received by
11 a.m. EDT Monday and competitive tenders, by 11:30 a.m.
Treasury Prices Step Up for a Third Day
BY DANIEL KRUGER
Treasury prices advanced
as investors appeared to focus
on signs of slowing growth
amid mixed economic data.
The yield on the 10-year
Treasury note
CREDIT
fell Thursday for
MARKETS a third consecutive session to
2.741%, its lowest close since the end of January, from 2.777% Wednesday.
Yields fall as bond prices rise.
It was the largest three-day
decline in yields since May.
The yield rose 0.332 percentage point during the quarter
but fell 0.129 percentage point
in March.
Investors’ expectations for
inflation for the next 10 years
declined to the lowest level in
two months after the Commerce Department said Thursday that core inflation, which
excludes food and energy
prices, rose 1.6% from a year
ago. The Federal Reserve’s
preferred measure of inflation
rose 1.8% for the period, a rate
last exceeded in February
2017, when it climbed 2.2%. Inflation is a threat to the value
of bonds as it erodes the future purchasing power of their
fixed interest payments.
The difference between 10year yields for Treasurys and
Treasury inflation-protected
securities narrowed to 2.06
percentage points, down from
2.16 percentage points a
month ago. The spread is
known as the break-even inflation rate because investors
who bet on inflation by buying
TIPS and selling Treasurys
would need the consumerprice index to rise that much
on average during the period
to break even on the trade.
The gap between two- and
10-year Treasury yields shrunk
to its narrowest point since
2007 as investors continue to
bet that the Fed will raise interest rates at least three
times this year, even as the inflation expectations reflected
in bond yields ease. Some investors see a shrinking gap between the two yields as a sign
of weakening sentiment about
economic growth.
Meanwhile, initial claims
for unemployment compensation fell to 215,000, the lowest
level since 1973, the Labor Department said Thursday. Personal income, reflecting Americans’ pretax earnings from
salaries and investments, rose
0.4% in February. Personalconsumption expenditures increased at a slower pace, rising a seasonally adjusted 0.2%
in February from the prior
month, the Commerce Department said.
.
B12 | Friday, March 30, 2018
THE WALL STREET JOURNAL.
* ***
MARKETS
A Quarter in Three Acts
Stocks limped into the end of the first quarter, capping a volatile
run that sent major indexes tumbling from all-time highs.
10%
INDEX PERFORMANCE, YEAR TO DATE
February: Volatility Returns
8%
Major indexes lost more than 10% of their
value over nine trading sessions, while
the Cboe Volatility Index, or VIX, spiked,
shattering the tranquility that had
characterized markets last year.
6
Dow closes
above 25000
for the first time
Nasdaq Composite
sets all-time high
Concern
mounts over
Facebook’s
management
of user data
Dow and
S&P 500 set
all-time highs
4
Nasdaq
Composite
2
s2.3%
YTD
0
S&P 500
t1.2%
–2
The 10-year
Treasury yield hits
a four-year high
January: Risk On
–4
Stocks roared in January, setting
repeated highs, with the S&P 500
jumping more than 5% to surpass the
level that analysts at Goldman Sachs
had thought it would end the year.
The VIX
posts its
largest-ever
one-day
increase
–6
January
NUMBER OF RECORD CLOSES IN JANUARY
11 of 21 trading days
Tech stocks suffered a beating as
investors reassessed a sector that has
been considered the growth engine of
the global economy but now faces the
prospect of greater regulatory scrutiny.
Dow and S&P 500 enter
correction territory for
the first time in two years
February
CHANGE IN MARKET VALUE IN MARCH
Feb. 5
40
14
t2.5%
March
CBOE VOLATILITY INDEX
13
Dow Jones
Industrial
Average
March: Tech Wreck
$1.7B
30
20
–$31.5B
10
0
Dow
Nasdaq
2017
S&P 500
2018
–$53.8B
–$52.5B
Facebook
Apple
–$48.6B
Amazon.com
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Bank Investors Are Too Bearish
U.S. banks are doing far
better than their share prices
would suggest.
Banking stocks have been
among the hardest hit in recent market declines. Since
the end of January the KBW
Nasdaq Bank Index is down
8.8%, compared with a 7.7%
decline in the S&P 500.
Investors clearly are worried about a flattening yield
curve as short-term borrowing rates have shot up while
long-term rates have stagnated. In theory, this is negative for banks, but this concern shouldn’t be overplayed.
Under current conditions,
many banks are still net beneficiaries from higher shortterm rates. So far, most haven’t increased what they
pay depositors by much. At
the same time, many loans
are tied to short-term benchmarks like the London interbank offered rate, boosting
their yield.
Barclays analyst Jason
Goldberg points to a measure
called the one-year gap ratio,
defined as the difference between assets set to reprice
within one year and liabili-
Reversal
Banks have fallen on concerns that short-term
rates are closing in on long-term rates.
U.S. 10-year Treasury yield
Three-month Libor
Performance of the
KBW Nasdaq Bank Index
8%
3.00%
6
2.75
4
2.50
2
2.25
0
2.00
–2
1.75
–4
1.50
Jan.
Feb.
March
Jan.
Feb.
March
THE WALL STREET JOURNAL.
Sources: SIX Financial; FactSet
ties set to do the same, as a
percentage of total assets.
For 22 large-cap banks, the
median ratio stood at 31% in
2017, up from 27% five years
earlier. This indicates that
banks have been preparing
for higher interest rates by
shifting into short-term assets that reprice quickly.
Differences between banks
are important. Those with a
higher gap ratio should benefit more from rising rates
over the coming year. Mid-
size lender Comerica ranks
among the best on this measure, according to Barclays,
likely because it does lots of
short-term business lending.
Ally Financial has a negative
gap ratio. Most big commercial banks are bunched together, with Citigroup in the
lead because it does lots of
business lending.
The wild card for bank
earnings is the recent uptick
in market volatility. Banks
with trading arms like to see
some volatility because it
gets clients trading and generating commissions. Too
much can scare clients away
from trading, though.
Have the stock market’s
recent moves been the right
amount of volatility for
banks or too much? Early indications are positive. Following the sharp market declines in early February,
executives at several major
banks made positive comments about first-quarter
trading revenue.
“There certainly has been
a pickup in volatility in the
first quarter. And by and
large, that’s positive,” said
Citigroup Chief Financial Officer John Gerspach at a conference in early March.
More important, volatility
is likely to stay elevated for
some time, as central banks
wind down the quantitativeeasing policies that suppressed volatility for years.
Overall, the trend lines for
major bank fundamentals are
still heading in the right direction. That likely makes
their recent decline a buying
opportunity.
—Aaron Back
OVERHEARD
Everyone knows how a big
night on the town can go
wrong. You feel good early
on, dancing, downing too
many drinks, meeting new
folks—and then end up face
down in a pile of puke.
That about sums up the
past four months in the life
of U.K. liquor-store chain and
wholesaler Conviviality. The
company bought a rival chain
in December, then just two
months ago announced “robust results.”
Heads started spinning on
March 8, when the company
disclosed a “material error” in
financial forecasts and a 20%
slashing of profit forecasts.
On the morning of March
14, it disclosed a £30 million
($42 million) unpaid tax bill
that was due two weeks
hence.
That evening, they canceled the dividend.
Investors woke up early
Thursday morning to an announcement that Conviviality
would file for the British
equivalent of bankruptcy protection.
Bottoms up, shareholders.
Shire Would Be a Big Pill for Japan’s Takeda to Swallow
Japan’s largest drugmaker
wants to gobble up a big
American meal. Low rates at
home may make it easier to
swallow, but indigestion is
still likely.
Takeda Pharmaceutical
said Wednesday it is considering a bid for London-listed
rival Shire, which would create one of the world’s largest
drugmakers by sales, ahead
of AbbVie and Eli Lilly. The
deal, if it ever goes through,
would be the largest ever
outbound acquisition by a
Japanese firm, according to
Dealogic. Ireland-based
Shire, which owns hyperactivity drug Adderall, had a
market value of $45 billion
after a 14% jump Wednesday,
Closing the Gap
Market capitalization
$60 billion
Shire
50
40
Takeda
30
2016
Netflix
Alphabet
Peter Santilli/THE WALL STREET JOURNAL.
Sources: WSJ Market Data Group (indexes, records); FactSet (VIX, market value)
’17
’18
Source: FactSet
THE WALL STREET JOURNAL.
while Takeda is a bit smaller
at $39 billion.
Takeda has been expanding rapidly in the U.S. to offset decline in its home market. It bought U.S. cancer-
drug maker Ariad
Pharmaceuticals for about
$5 billion last year. Takeda
sells more prescription drugs
in the U.S. than in Japan.
Adding Shire would mean
nearly half of its revenue
would come from America.
Still, Takeda’s move looks
opportunistic. As recently as
late 2016, Shire’s market
value was 70% higher than
Takeda’s. Shire’s $32 billion
takeover of Baxalta in 2016
has loaded the company with
debt and sent its stock down
40% since the beginning of
last year.
Even though Shire is now
of similar size to Takeda, the
Japanese firm will likely still
have to take on tons of debt
to fund a deal. Cheap funding
rates in Japanese yen would
make that more palatable,
but it is still digesting the
borrowings it took on for the
Ariad acquisition. Although
Takeda’s net debt is now a
manageable 1.8 times earnings before interest, taxes,
depreciation and amortization, that would likely balloon if it has to borrow for
the Shire deal.
So Takeda would likely
have to offer its stock, at
least in part, to complete the
deal. It is now trading at
much higher earnings multiples than Shire is and has a
lower profit margin. It could
offer a high takeover premium to Shire, though that
would be dilutive for
Takeda’s shareholders—
which is likely one reason
that Takeda slumped 7% on
Thursday.
Takeda has until late April
to decide whether it will put
in a concrete bid for Shire,
but other bigger rivals like
AbbVie, which tried to buy
Shire in 2014, or Sanofi, may
sense the opportunity to
pounce in the meantime. U.S.
drugmakers have found it
tougher to push growth via
price increases recently—
their traditional recipe—so
they are eager to look for acquisitions. The hard work is
just beginning if Takeda
wants to secure a Shire deal.
—Jacky Wong
WSJ.com/Heard
Barclays
Settlement
Is a Relief
Finally, there is some good
news to put a spring in the
step of Barclays’s pressured
chief executive, Jes Staley.
His decision to stand up to
the U.S. Justice Department
over accusations that it improperly sold mortgage
bonds has paid off: The Justice Department had demanded $5 billion in December 2016, but Barclays is
paying a final settlement of
$2 billion.
That is one of the lowest
settlements among the large
banks pursued by the Justice
Department, and it is all
cash—a good thing. Many
other banks had a similar or
larger cash settlement plus a
commitment to fund billions
of dollars of consumer relief.
For example, Deutsche Bank
and Credit Suisse Group,
which both settled in December 2016, paid $3.1 billion
and $2.5 billion, respectively,
in upfront cash penalties,
plus $4.1 billion and $2.8 billion in consumer relief.
Barclays had no provisions
to cover the fine so the hit to
capital will push the bank below its targeted 13% common-equity ratio for now.
However, it should more than
make up that lost capital
through profits this year and
have enough to pay its
planned higher dividend for
2018.
The stock showed only a
small positive reaction to the
settlement, and that is understandable. Barclays has
other legal fights in the U.K.,
is facing questions over its
strategy and has a new activist investor about to start agitating for changes.
In terms of cash costs, the
U.S. mortgage-bond charges
were the bank’s biggest overhang. Investors—and Mr. Staley—can breathe a big sigh
of relief.
—Paul J. Davies
Producer Joel Silver
sells Malibu home
for $37 million
M2
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
.
‘Man, he’s just like
trippen-dicular, you know?’
—From ‘Valley Girl’ (1983)
|
SALES
|
FIXTURES
THE WALL STREET JOURNAL.
© 2018 Dow Jones & Company. All Rights Reserved.
|
BROKERS
Friday, March 30, 2018 | M1
A Turf War in the Valley
JOE SCHMELZER FOR THE WALL STREET JOURNAL; BEN PRUCHNIE/GETTY IMAGES (SILVER)
Long the suburban stepsister of luxury Los Angeles neighborhoods like Beverly Hills,
the San Fernando Valley is becoming more fashionable—and more competitive.
VALLEY LIVING After years living in the posh Los Angeles, Calif., neighborhood of Hollywood Hills, Arnie and Carol Kleiner moved to this house in Studio City in the Valley. Not only has the area become
more sophisticated and walkable, it offers a less-trafficked alternative to Hollywood, Ms. Kleiner says. Mr. Kleiner says the sushi in the area is excellent.
BY KATY MCLAUGHLIN
IN APRIL, Roger Ewing, owner of three Sotheby’s International Realty offices in Los Angeles’s San Fernando Valley, took meetings with six
of his top-producing agents, only to learn they
were all quitting to join a competitor.
“They put me out of business,” said Mr. Ewing. Ultimately, 15 agents left, stripping the company of its top 25% of producers, which “took all
the profit out of the company and put me in the
red,” said Mr. Ewing. Having closed two of his
offices in July and the third last month. Mr. Ewing is now working as an independent real-estate broker.
Turf wars in the competitive Los Angeles
real-estate market are nothing new, but this one
broke out in an unexpected place: the San Fernando Valley. Long considered the suburban
stepsister of neighborhoods like Beverly Hills,
Bel-Air and Malibu, the Valley has become more
fashionable, more expensive, and—as Mr. Ewing
discovered—more competitive.
The battles reflect the growing strength of
the market. Last year, there were 1,765 property
sales in the Valley for over $5 million, up 54%
from a decade ago, according to Zillow, a real
estate website. It also found the median price
for a single-family home in the Valley hit
$673,000 last year, above its precrash peak of
$627,000, in 2007.
Compass, the self-described real estate technology company to which Mr. Ewing’s agents
moved, recently opened two offices in the Valley
Please turn to page M4
SHHHH. THE PRICE IS A SECRET
INSIDE
In a risky move, some sellers tell prospective buyers that the asking price is ‘available upon request.’ The strategy is
meant to create mystique and result in a high purchase price, but some experts warn that sealed lips sink sales.
BY KATHERINE CLARKE
ALL-STAR SALE
Lopez and Rodriguez
buy NYC condo M2
BELGIAN BOOM
French ex-pats
flock to Brussels M3
ROBERTO CIGNA
REAL-ESTATE DEVELOPER
Arnon Katz was searching for
the mechanical system above
his Manhattan penthouse
when he discovered a huge,
underused attic overhead.
Four years later, with architectural plans in hand, he is
marketing the space as a
10,000-square-foot triplex
atop Hampshire House, located on Central Park South.
The asking price: Mr. Katz
isn’t telling.
The price of the apartment
is “available upon request,”
meaning that prospective buyers must call or even visit the
property before they can learn
the magic number or begin
negotiations. While his realestate agents say they have a
rough price point—or at least
a range—in their minds,
they’re waiting for the market
to help guide the exact price.
“Given its absolute rarity,
we didn’t want to presume
what a buyer would be willing
to pay,” said Mr. Katz, who is
working on the project with
his business partner Eli Bar.
“We decided a better approach would be to reach out
Please turn to page M12
A PRINCETON YEN
Early years of Mary
Chapin Carpenter M7
.
THE WALL STREET JOURNAL.
M2 | Friday, March 30, 2018
MANSION
PRIVATE PROPERTIES | KATHERINE CLARKE
Jennifer Lopez, Alex Rodriguez
Buy NYC Condo for $15.3 Million
PRODUCER
JOEL SILVER SELLS
MALIBU HOME
FOR $38 MILLION
Movie producer Joel Silver sold
his Malibu, Calif., home for $38
million on Thursday, according to
sources familiar with the transaction. Mr. Silver’s credits include the
“Lethal Weapon,” “Die Hard” and
“The Matrix” franchises.
The property was listed in 2016
for $57.5 million, then reduced to
$52 million last fall. The listing
agent was Judy Feder of Hilton &
Hyland, a Beverly Hills-based brokerage, and the agent for the buyer
was Kurt Rappaport of Westside
Estate Agency. Mr. Rappaport declined to name the buyer, citing a
non-disclosure agreement.
The 34% price drop is likely due
to the marketing strategy and condition of the home, and not a reflection of the overall market,
which is strong at the high end in
Malibu, said Madison Hildebrand,
an agent with Pacific Union International who specializes in highend Malibu homes but was not involved in this transaction.
“I think they priced it to get attention,” said Mr. Hildebrand, who
estimated that the property would
have needed about $15 million in
upgrades to make it worth the
original list price.
According to the listing, the
five-bedroom house, with a pool
and tennis court, sits on ¾-acre
with full frontage on Carbon Beach.
Mr. Silver bought the house in
2003 from another legendary
movie producer, Robert Chartoff,
who produced “Rocky” and “Raging Bull.”
Mr. Silver could not be reached
for comment.
—Katy McLaughlin
HIGH LIFE Above, 432 Park Avenue. Below, a bathroom inside Ms. Lopez’s other apartment, listed for $26.95 million.
See more photos of notable
homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
FAMED BALLERINA’S HAMPTONS HOME LISTED FOR $37 MILLION
The family of Sono Osato, once
a renowned ballet dancer, is listing
her Hamptons summer home for
$37 million.
The traditional-style home sits on
almost 4 acres on Quimby Lane in
Bridgehampton, a quiet lane overlooking Sagg Pond. The 7,200-square-foot
house has five bedrooms, all with fireplaces, and five full bathrooms and
three half-baths. The estate includes a
pool, a tennis court and 300-feet of
frontage on the pond, where a small
strip of sandy beach disappears and reappears with
the tide.
Listing agent Deborah Srb of Sotheby’s International Realty said
the property could be
torn down to make way
for a new build.
Ms. Osato, 98, was the
first American dancer to join the
Ballet Russes de Monte Carlo and
danced with the American Ballet The-
atre. She played the lead in
the original production of
“On the Town” on
Broadway in 1944. She
was married to Victor
Elmaleh, chairman of
World-Wide Group, a
real-estate development
firm. Mr. Elmaleh died in
2011.
Niko Elmaleh, 71, one of the
couple’s sons, said the family is selling
because his mother is getting older
and isn’t able to use the property as
regularly. He said his father renovated
the house, which dates back to 1917,
when he first purchased it in the
mid-1970s, but that it has not changed
substantially since.
“The whole joy of living there is
feeling like you’re not in 2018. There’s
a sense of tradition about it,” he said.
Estate of Cambridge Diet entrepreneurs lists for $37 million. M10
LUXU RY AU C T I O N S
®
OCEANFRONT ESCAPE
Previously $2.2M. Now Selling
WITHOUT RESERVE!
April 28 - Flagler Beach, FL
EQUESTRIAN ESTATE
Previously $8.7M. Now Selling
At or Above Only $3M!
May 5 - Wellington, FL
TROPHY RANCH
Previously $13.9M. Now Selling
At or Above Only $4M!
Occupancy:
Q4 2020
Topping Off:
Q1 2019
May 26 - Boulder, UT
12th Floor:
Completed Q4 2019
SEASIDE RETREAT
Foundation:
Completed Q4 2018
Previously $2.45M. Now Selling
WITHOUT RESERVE!
Groundbreaking:
April 2018
May 29 - Cape Cod, MA
EQUESTRIAN MANOR
Previously $8M. Now Selling
WITHOUT RESERVE!
June 1 - New Vernon, NJ
800. 262.5132
PlatinumLuxuryAuctions.com
Flagler Beach property listed & offered for sale exclusively by Platinum Luxury Auctions (FL RE Corp Lic# CQ1036963). Wellington property listed
& offered for sale by Southfields Realty. Listing agent Carlos Arellano (BK416282). MA property listed & offered for sale by Rand Atlantic Cape
Cod Realty. Listing Agent Priscilla Geraghty (Lic.#9056097). UT property listed & offered for sale by Summit Sotheby’s International Realty. Listing
AgentKathyMears(Lic#5464186-SA00).NJpropertylisted&offeredforsalebyKienlenLattmannSotheby’sInternationalRealty(Lic#0903100).
ListingAgentsBerlyTeele(Lic#0559674)&LisaGeoffroy(Lic#1539382).PlatinumLuxuryAuctionsLLCisalicensedFloridaRealEstateCorporation
(CQ1036963), licensed Florida Auction Business (AB2956), registered UT Foreign LLC (Entity#10748188-0161), and registered NJ Foreign LLC
(ID#0450234983) performing auction-marketing services as part of this transaction, & is not performing any real estate brokerage services where
prohibited. Sotheby’s International Realty, the Sotheby’s International Realty logo & affiliate logos are registered (or unregistered) service marks used
with permission. Neither Sotheby’s, Sotheby’s International Realty Affiliates LLC, nor any of their affiliated companies is providing any product or
service in connection with this event other than as required by applicable law.
(CLOCKWISE FROM TOP LEFT) EVAN AGOSTINI/ASSOCIATED PRESS; ANDREW LAMBERSON FOR THE WALL STREET JOURNAL; MARK SINGER; GETTY IMAGES; BRUNO SCHRECK; EVAN JOSEPH (CENTER)
Singer-actress Jennifer Lopez and
her boyfriend, retired Yankees slugger
Alex Rodriguez, paid $15.316 million
for an apartment at 432 Park
Avenue, the world’s tallest
residential tower, in a deal
that closed in February,
according to two people
with knowledge of the
deal.
Ms. Lopez and Mr.
Rodriguez’s new home
measures about 4,000
square feet with three bedrooms and 4½ bathrooms. The building, located on Park Avenue between
56th and 57th streets, has sweeping
views of the city and Central Park.
Residents have access to about
30,000 square feet of amenities, including a lounge, a private restaurant,
a 75-foot indoor swimming pool, a
fitness center and a screening and
performance venue, according to listings website StreetEasy.
The couple bought the unit
through a limited-liability company.
The listing agents were Shari Scharfer-Rollins, Richard Steinberg, Sabrina
Saltiel and Roger Erickson of Douglas
Elliman. Adam Modlin of the Modlin
Group represented the buyer.
Meanwhile, Ms. Lopez is listing her
former Manhattan home, a penthouse
at the Whitman building just north of
Madison Square Park. She purchased
that unit for $20.161 million in 2014,
records show, and is listing it for
$26.95 million.
It has four bedrooms and about
3,000 square feet of outdoor space
across four terraces and two floors,
according to the listing. That building
is also home to Chelsea Clinton, the
daughter of Bill and Hillary Clinton.
A spokesman for the developers,
CIM Group and Macklowe Properties,
declined to comment, as did a representative for Ms. Lopez.
Ms. Lopez, 48, is currently performing in Las Vegas as part of her
ongoing residency at Planet Hollywood.
Mr. Rodriguez, 42, retired in 2016
and has worked in broadcasting for
ESPN and Fox Sports.
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | M3
MANSION
THE MARKET
Brussels District Lures Affluent New Admirers
Prices rise in corner of Belgian-EU capital; some commute to Paris; home with indoor pool for $6 million
FINICKY FRENCH expatriates and
buyers reacting to Brexit are helping to boost prices in Belgium’s Ixelles municipality, southeast of the
center of Brussels.
Rich in 20th-century townhouses
and landmark Art Nouveau and Art
Deco architecture, Ixelles has seen
residential prices soar, says Bart
van Opstal, spokesman for Fednot,
Belgium’s national organization of
notaries, which reports on the
country’s real-estate transactions.
Mr. van Opstal says there was a
surge in 2016 after the U.K.’s vote
to leave the European Union, known
as Brexit. Prices for Ixelles’ singlefamily homes, which make up the
bulk of the district’s luxury-housing
stock, rose more than 15% since
2015, says Mr. van Opstal. With one
in 20 residential sales exceeding
€850,000, or about $1 million, Ixelles is the Brussels region’s most
expensive inner district, he adds.
Ixelles comprises several distinct
neighborhoods. East of Avenue
Louise, the leading upscale shopping thoroughfare in Brussels, are
Matonge and the formerly scruffy
Flagey. Both diverse neighborhoods
are seeing a wave of gentrification.
Near Matonge, a new 3,100-squarefoot, two-bedroom, eighth-floor
penthouse is on the market for
$2.27 million. The unit has a 1,500square-foot terrace.
“Flagey is ‘bobo,’ ” says Arnaud
Pitz, a longtime Ixelles resident, using the French expression for
“bourgeois bohemian” to describe
Flagey’s thriving nightlife, popular
produce markets and rising prices.
Mr. Pitz, 49, a photographer and
lighting designer, and his wife, Diane Maters, 47, a psychotherapist,
BELGIUM SOTHEBY’S INTERNATIONAL REALTY
Home for Sale
$2.67 million
Ixelles-Brugmann
Five bedrooms, three bathrooms
This 4,400-square-foot 1936 townhouse has a library in its master suite.
Agent: Bertrand de Moffarts, Belgium
Sotheby’s International Realty
FROM TOP: BEA UHART FOR THE WALL STREET JOURNAL; JASMINE VAN HEVEL FOR THE WALL STREET JOURNAL (2)
BY J.S. MARCUS
are selling their five-story Ixelles
townhouse for $2.89 million. The
6,600-square-foot 1905 home is on
the western side of Avenue Louise,
near Place Georges Brugmann.
Brugmann, as locals call it, has
been transformed by new arrivals
from France. In search of lower
taxes and a higher quality of life,
they are drawn to the Belle Époque
townhouses—which can rival those
in prime areas of Paris—plus a
bounty of small shops, fine restaurants and green spaces. Frequent
high-speed trains put Brussels less
than a 90-minute commute from
Paris, where some work. Mr. Pitz
says his yoga class is now 80%
French.
He and his wife spent about
$614,000 in 2006 to transform a
rundown, three-bedroom, twobathroom, 6,600-square-foot townhouse into a six-bedroom, fivebathroom home for the couple and
their four children. (Abraham de
Bettencourt, director of Lecobel
Vaneau, a real-estate agency with
offices in Ixelles, says similar properties were selling for about $1.1
million at the time of their original
purchase.)
Their update includes a new
open-plan kitchen on the second
floor, and getting rid of a servants’
back staircase for extra room. The
former basement kitchen is now a
FOR SALE Arnaud Pitz and Dianne
Maters have listed their Ixelles townhouse, above, for $2.89 million. Karin
de Ceuninck plans to stay in the area
after the sale of her home, left and
below, listed at $6 million.
party/playroom. The couple also
created a split-level master suite
on the third floor. The top floors
hold the children’s bedrooms.
Now that their two eldest children are grown, the couple and
their two teenagers plan to move
to Uccle, the villa district south of
Ixelles. Their new home will be half
as big but have a lot nearly five
times the size of the current one.
Karin de Ceuninck, 57, an Ixelles
native, has long had her eye on
Brugmann’s bucolic boulevard lined
with chestnut trees and imposing
townhouses. “I would love to live
on Louis Lepoutre, but parking is a
nightmare,” she says.
She and her partner, architect
Dominique Boniver, 50, are selling
their own Ixelles townhouse now
that their family of four children
from earlier marriages are grown.
They want to divide their time between their home in Provence and
a new place in Ixelles.
Ms. de Ceuninck has listed her
home, an urban mansion, for $6
million. The 7,500-square-foot
townhouse fronts a 1/8th-acre yard
with a new garden house. It also
has a luxurious indoor pool. She
bought the early-20th-century
home in 2012 and oversaw a gut
renovation. She expanded the firstfloor kitchen and added a floor on
top. The property, surrounded by
embassies, is in the Ixelles neighborhood named after the Bois de la
Cambre, a 19th-century public park
at the base of Avenue Louise.
A short walk away, Ixelles Ponds
is noted for its elegant apartment
buildings. A two-bedroom Ponds
duplex, in a 1930s building, is on
the market for $4.9 million. The
4,200-square-foot apartment has a
1,500-square-foot terrace.
.
M4 | Friday, March 30, 2018
THE WALL STREET JOURNAL.
NY / NE
MANSION
A TURF WAR IN THE VALLEY
GO NORTH
Carol and Arnie
Kleiner paid
nearly $2.6 million for their
home. The ‘Valley’ now offers a
growing quantity
of high-end construction. Left,
the living room.
Below left, the
bedroom also
has a fireplace.
Below right, the
couple with their
dog.
JOE SCHMELZER FOR THE WALL STREET JOURNAL (3)
Continued from page M1
with 40 agents between them.
Many of the company’s additional
420 Los Angeles-based agents also
do deals in the Valley, said Chief
Executive Robert Reffkin. In late
2017, New York-based Compass received a $450 million infusion
from SoftBank Vision Fund, a
Japan-based technology investor.
Pacific Union International, a
San Francisco, Calif.-based company, acquired three Los Angeles
brokerages within the past two
years, giving it an entree into the
market and branches in three Valley neighborhoods. The company
plans to open two offices in the
Valley—one in Burbank this year,
and possibly another in Hidden
Hills or Calabasas—said Nick Segal, president of Pacific Union International, Southern California.
Brokerages known for concentrating on luxury markets are also
making incursions. Last year, Hilton & Hyland, based in Beverly
Hills, transacted $156 million
worth of sales in the Valley. Five
years ago, it hardly did any business in the area, said estates director Donovan Healey, who specializes in the Valley and moved to
Hilton & Hyland from another brokerage in September.
The Agency, a luxury brokerage
based in Beverly Hills, opened offices in Sherman Oaks and Calabasas within the past 14 months.
Chief Executive Mauricio Umansky
is closely associated with Beverly
Hills; after all, his wife stars in the
reality-television show “Real
Housewives of Beverly Hills.” But
last year, the couple bought and
moved to an $8.5 million house in
Encino, in the Valley.
The majority of the San Fernando Valley lies within the city of
Los Angeles, but locals nonetheless
tend to refer to it as “the Valley”
and to the rest of Los Angeles as
“the city.” It is physically separated from the Los Angeles basin
to the South by the Santa Monica
Mountains, traversable by freeway
or canyon roads.
In the 1980s, pop culture took
aim at the Valley’s tract housing
and suburban culture in songs
such as Frank and Moon Zappa’s
“Valley Girl,” which featured vapid
lyrics spoken in an exaggerated
Southern Californian accent. The
1983 film “Valley Girl” juxtaposed
sheltered, materialistic Valley
teens with edgier punk-rock teenagers from Hollywood.
The changing attitudes toward
the Valley reflect the changing economics of Los Angeles real estate.
Some of the Hollywood types who
pioneered neighborhoods like Beverly Hills and Bel-Air can no longer
afford these areas, having been
priced out by technology executives,
foreign buyers and cash investors.
And while the West Side, an
area that includes Venice, Santa
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | M5
MANSION
MICHELLE DREWES FOR THE WALL STREET JOURNAL (3)
MAKING A
DEAL Jonathan
Mangum, an announcer on the
CBS television
show ‘Let’s
Make a Deal,’
and his wife,
Leah, a casting
director, paid $2.1
million for their
nearly 3,000square-foot Toluca Lake house.
With them are
their sons Chase,
left, and Austin.
Top left and
right, the kitchen
and a patio area.
Monica, Pacific Palisades and
Brentwood, long offered a cheaper
alternative, prices there have risen
over 59% since 2012, according to
an analysis by Tami Pardee,
founder of Halton Pardee & Partners, a brokerage with three offices on the West Side.
It has gotten to the point that
star-struck fans are starting to pop
up in more fashionable Valley
neighborhoods. “Young kids come
out here with their Instagram
shots with the sign ‘Hidden Hills,’”
said Jeff Biebuyck, an agent with
Compass who was one of the defectors from Sotheby’s. They know
the high-end gated community
from reality TV shows featuring
members of the Kardashian family,
from raps by resident Drake and
from television personality Kylie
Jenner’s clothing line, which features items appliquéd with the
words “Hidden Hills.”
“I’m getting more executives
from the studios, more actors and
musicians,” said Craig Strong, director of estates division for Pacific Union International. He recently sold a $2.1 million Toluca
Lake house to Jonathan Mangum,
an actor and comedian who works
as the announcer on the CBS television show “Let’s Make a Deal.”
His wife, Leah, is a casting director and their 14-year-old son
Chase is an actor on the Fox television show “Lethal Weapon.”
Mr. Mangum sees Toluca Lake
as “the place to go if you’re an actor doing well and don’t want to
live in Pacific Palisades, Brentwood or Santa Monica,” because
they can’t offer as much for the
money. His nearly 3,000-squarefoot house is in a quiet neighborhood that reminds Mr. Mangum of
his hometown of Mobile, Alabama.
At the same time the Valley—
long known for cookie-cutter suburbs and chain restaurants—offers
good schools, an improving restaurant and shopping scene and a
growing quantity of high-end construction. Many areas have urbanized, with more walkable streets, independent boutiques and eateries.
After years living in the posh
“city” neighborhood of Hollywood
Hills, Carol and Arnie Kleiner decamped for Studio City in the Valley, moving into a house they purchased for just under $2.6 million.
Not only had the area become
more sophisticated and walkable,
it offered a less trafficked alternative to Hollywood, Ms. Kleiner, 74,
said. Mr. Kleiner, 74, who worked
as the president of ABC Channel 7
before retiring, added that the sushi is excellent.
Tomer Fridman, another former
Sotheby’s agent now at Compass,
said he would list a new construction home in Hidden Hills for between $30 million and $35 million
in June. As expensive as the Hidden
Hills and Calabasas markets are,
prices rarely top $1,500-per-squarefoot, while comparable homes in
Bel-Air might fetch $3,000-persquare foot, Mr. Fridman said.
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.
THE WALL STREET JOURNAL.
M6 | Friday, March 30, 2018
May 22, 2018
|
Four Seasons Hotel
|
Washington, D.C.
How innovation is revolutionizing
the business of health
This spring, the editors of The Wall Street Journal will convene inluential business leaders, policy makers and experts
from across the health and health-care industries to focus on the innovations transforming this critical sector. Through
interactive interviews, we will cover topics ranging from new technologies and advanced analytics to Washington
policy and evolving private-sector business models.
SPEAKERS
Scott Gottlieb, M.D.
Commissioner,
U.S. Food and Drug Administration
Acting Director,
Centers for Disease Control
and Prevention
Steven H. Collis
Gail K. Boudreaux
Chairman, President and CEO,
AmerisourceBergen Corporation
President and CEO,
Anthem, Inc.
Mark T. Bertolini
Alex Gorsky
Chairman and CEO,
Aetna Inc.
Chairman and CEO,
Johnson & Johnson
David A. Ricks
Richard J. Gilillan, M.D.
Chairman and CEO,
Eli Lilly and Company
CEO,
Trinity Health
Michael A. Mussallem
Anthony S. Fauci, M.D.
Chairman and CEO,
Edwards Lifesciences
Director, National Institute of
Allergy and Infectious Diseases,
The National Institutes of Health
Mary E. Klotman, M.D.
Alexis Borisy
Dean, School of Medicine and Vice
Chancellor for Health Affairs
Duke University
Partner,
Third Rock Ventures
Peter B. Bach, M.D.
George M. Church, Ph.D.
Director, Center for Health Policy
and Outcomes and Faculty Member,
Department of Epidemiology and
Biostatistics,
Memorial Sloan Kettering Cancer Center
Professor of Genetics,
Harvard Medical School
Steven J. Corwin, M.D.
Stephanie Domas, P.E., C.E.H.
President and CEO,
NewYork-Presbyterian
Vice President of Research,
MedSec
Thomas McLellan, Ph.D.
David N. Osser, M.D.
Co-Founder and Scientiic Director
(19922015),
Treatment Research Institute
Associate Professor of Psychiatry,
Harvard Medical School
Deputy Director and Senior Scientist
(20092011), White House Ofice of
National Drug Control Policy
Director,
PersonalGenomes.org
Attending Psychiatrist, Domiciliary
Treatment Program for Homeless Veterans,
Veterans Affairs Boston Healthcare System
Eric Topol, M.D.
Sarah E. Wakeman, M.D.
Founder and Director,
Scripps Translational
Science Institute, Professor
of Molecular Medicine and
Executive Vice President,
The Scripps Research Institute
Medical Director, Substance
Use Disorders Initiative,
Massachusetts General Hospital
Feng Zhang, Ph.D.
Daphne Zohar
Core Institute Member,
Broad Institute of MIT
and Harvard
Co-Founder and CEO,
PureTech Health plc.
Request your invitation: healthforum.wsj.com
© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6393
Rear Adm. Anne Schuchat,
M.D.
Assistant Professor of Medicine,
Harvard Medical School
PROUDLY SPONSORED BY:
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | M7
NY
MANSION
HOUSE CALL | MARY CHAPIN CARPENTER
Lost Chords on a Leafy Street
The singer still pines for her family home in Princeton, N.J.; today, a Blue Ridge Mountains farmhouse
SLAVEN VLASIC/GETTY IMAGES (LEFT); MARY CHAPIN CARPENTER (2)
YEARNING Mary Chapin Carpenter at City Winery in Manhattan in January, left; with her dog, Rusty, in Princeton,
N.J., in 1965, above; and as an infant, held by her mother,
Bowie, in Marquand Park, Princeton, in 1958.
I still dream about the house I lived in for the
first 10 years of my life. In those dreams, I’m
flying over the house and can see me as a
child standing in front of my bedroom window.
My family lived in a beautiful
two-story white house on a leafy
street in Princeton, N.J. Everyone
was together there—my father, my
mother and my three sisters. My
father, Chapin, was an executive
on the business side at Life magazine. My mother, Bowie, worked at
our school.
The house was about 100 years
old and had large old trees out
front and in the back. We lived
just blocks from Princeton University. The attic was my favorite
room. All the toys we outgrew
were stored there. Hours were
spent going back in time, and my
friends and I could leave the place
a mess.
It was fun growing up in our
neighborhood. Across the street
was a wonderful family: the Erdmans. Mr. Erdman had a record
player and a great album collection. I’d show up in their living
room unannounced and play the
family’s Donovan records. Mr. Erdman would come in, look at me
and say, “Oh, it’s you again.”
When I was 6 or 7, I absconded
with my mother’s bass ukulele.
She played it along with her
smaller ukulele and a Spanish
acoustic guitar with nylon strings.
She and her friends liked to get
together to play and sing from
their Kingston Trio songbooks.
This was in the early 1960s, during what some called “the great
folk scare.”
Up in my room, I fooled around
on the bass ukulele. Eventually I
moved on to my mother’s guitar.
With that instrument in my lap, I
looked at the chord diagrams in
her songbooks. Then I’d put my
fingers on the fret board based on
what the diagrams said. The first
song I taught myself to play was
“Cielito Lindo.”
I memorized songs quickly and
soon began playing along with records by the Beatles, Judy Collins,
Joan Baez, Woody Guthrie, Bob
Dylan and The Band.
My parents were still youngsters in that house. They’d have
friends over for dinner and have
too much wine. Then they’d ask
me to come in and play and sing a
song. I often opened with “Try to
Remember” from the Fantasticks.
I’d close my eyes and sing earnestly. Then they’d ask for my biggest hit with dinner guests—“Leaving on a Jet Plane,” which John
Denver wrote and recorded in ’66.
Not everything was perfect in
our Princeton house. My parents
didn’t always get along. But while
we lived there, we were a family.
One night at dinner in 1968,
when I was 10, one of my parents
began telling a story: “So we know
this couple who was offered a
chance to go to Mexico or Japan.
Which would you choose?”
I was chewing my food. Without missing a beat, I said, “I
wouldn’t go anywhere. I’d stay
right here.”
At some point, that family in
B E A U T I F U L LY R E N O V A T E D ,
my parents’ story became us. My
father had been offered a choice
between Mexico City and Tokyo to
become the publishing director of
an international edition of Life. He
chose Tokyo. All I felt was dread.
Days later, I saw a real-estate ad
in the local paper for our house. I
was grief-stricken.
The image of the moving van
showing up never left me. They
wrapped our entire life in paper
and moved us away. I’ve mined
that vein in songs ever since.
We returned from Japan when I
was 15 and lived briefly in Princeton. I didn’t like driving past our
old house. It belonged to someone
else. My parents divorced a few
years later.
Today, I live in a two-story white
farmhouse on 100 acres in the Blue
Ridge Mountains of Virginia.
About 15 years ago, I performed in Princeton. After, a
childhood friend told me that the
people who lived in my old house
were away. They said it was OK if
we dropped by. We drove over,
and once inside, I went to my
bedroom alone. I stood in front of
the window where I stood as a
little girl.
At some point during the 10
minutes I was there, I touched the
screen. I wanted to feel it to make
sure I wasn’t making up the visit.
Not long after, I was on my tour
bus on a rainy cold morning in
New England. I was reading a design magazine when I came across
an ad for my childhood house with
a photo.
I wanted to buy it. I thought if I
owned it, living there would let
me fix everything that came after.
But it was crazy expensive and too
big for me to live there by myself.
And of course, the past is the
past.
I never went back inside my old
house. But whenever I perform in
Princeton, I walk over and stand in
front of it from across the street. I
feel like I’ve spent my entire life
trying to get back to that home.
It’s where I became me.
—As told to Marc Myers
Mary Chapin Carpenter, 60, is a
five-time Grammy-winning singersongwriter. Her latest album is
“Sometimes Just the Sky” (Lambent Light).
A TUSCAN PALACE WITH FEET OF WATERFRONT
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Lic. Assoc. R. E. Broker
O : 212.303.5353
M: 917.558.4477
roger.erickson@elliman.com
In cooperation with Sheryl Hodor,
Coldwell Banker Residential Real Estate, LLC
elliman.com/newyorkcity
575 MADISON AVENUE, NY, NY 10022. 212.891.7000 © 2018 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN
IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED
SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT
LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD
BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY.
Coldwell Banker Residential Real Estate, LLC
Property listed and offered for sale by Coldwell Banker Residential Real Estate, LLC. Listing agent Sheryl Hodor. Daniel DeCaro Real Estate Auctions, Inc., is a licensed Florida Real Estate Broker
(#AU3074) performing auction and auction-marketing services as part of this transaction. Coldwell Banker Residential Real Estate, LLC and affiliate logos are registered (or unregistered) service
marks used with permission. Neither Coldwell Banker Residential Real Estate, LLC, nor any of their affiliated companies is providing any product or service in connection with this event other than
as required by applicable law. Review the Terms and Conditions for further details at DeCaroAuctions.com.
.
THE WALL STREET JOURNAL.
M8 | Friday, March 30, 2018
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on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2
car garage, private elevator, and amazing rooftop terrace. Low HOA fees.
Walking distance to world-class restaurants, museums, shopping, parks,
marina, and Tampa Bay.
Beautifully situated on a secluded riverside site 384 feet wide, the
4,400-sq-ft coastal retreat at 328 Moon Tide Lane enjoys privacy in spades,
yet is just 8 minutes from the beach. Lush landscapes cradle it on both
sides, and no house can ever be built across the lane. Large outdoor living
spaces and huge windows in this pristine, recently built home frame the
wide tidal marsh and river.
Waterfront Homes from the High $400s
From the $800’s to $900’s
$2,795,000
OPHMintoUSA.com
www.RegentLane.com
kiawahisland.com/328-moon
One Particular Harbour by Margaritaville
NJR Property Investments LLC
Kiawah Island Real Estate
phone: 866.713.1319
phone: 727.515.5556 email: natalie@njrdevelopment.com
phone: 866.312.1780
WHITETAIL CLUB - MCCALL, IDAHO
HARTLAND, WISCONSIN
LAKEWOOD RANCH, FLORIDA
The Shore Lodge Cottages at Whitetail Club. Four spectacular cottage
models ranging in size from 1369–2490 sq. ft. plus 1-car & 1 cart garage.
The ultimate weekend getaway. The lakefront clubhouse, the single-track
mountain bike trail system, Nordic ski trails, indoor tennis & fitness center,
& the championship golf course are all outside your doorstep.
Pine Lake: Elegant 4,500-sq.ft. 8.5 car garage New England shingle-style
home. A unique home with lake views from every main room, including a
turret topped by a crow’s nest. Nestled on 6 acres, featuring 230’ of prime lake
frontage. Less than 30 minutes from downtown Milwaukee & 2 hours from
Chicago.
County Club East provides the perfect complement of private sanctuary and
social connection. A stunning golf course landscape provides the scenery for
this gated community while a full-time lifestyle director brings life, live music
and memorable events to the resident clubhouses and amenities.
Priced from $689,000 - $889,000
$2,850,000
WhitetailClub.com
patbolger.com
info@kiawahisland.com
From the $300s to over $1M
Whitetail Club Realty, LLC.
Joe Carter
Pat Bolger Realty Group
LWR Communities, Inc.
phone: 877.634.1725
phone: 262.313.8797
phone: 941.907.6000
Email: jcarter@whitetailclub.com
pat@pbrrealty.com
www.countryclubeast.com
info@lakewoodranch.com
CLE ELUM, WASHINGTON
NEWPORT, RHODE ISLAND
JOHN’S ISLAND – VERO BEACH, FLORIDA
Suncadia is Seattle’s backyard escape, a sunny mountainside
playground just 80 miles from the city. Tucked into a quiet cul-de-sac and
overlooking the golf course is this 5-bedroom, 3.5-bathroom, 3,921 sq. ft.
mountain home featuring stunning craftsmanship. Nearby are hike and bike
trails that lead into the forest, a new swimming facility and other amenities.
Ocean Drive Classic – ‘Hexagon House’ offers sweeping views of the
Atlantic and out to Block Island. A 2,950 sq. ft. contemporary-style on
Newport’s stunning Ocean Drive in a spectacular, private, and natural
setting directly on Lily Pond. Private walking paths and waterside pool.
Located where the “tropics begin” sits one of the most renowned
eastern coastal communities with 3 miles of pristine beach, 3 championship
golf courses, 17 Har-tru tennis courts, pickleball, squash & Beach Club.
Offering 130 feet of Intracoastal frontage, this 5BR/7.5BA retreat enjoys
8,306± GSF, .85± acres, 3-car garage pool, and new trex boat dock.
$1,650,000
$5,500,000
$6,700,000
suncadialisting.com
GustaveWhite.com
JohnsIslandRealEstate.com
Suncadia Real Estate Company
Jeff Rau
Gustave White Sotheby’s International Realty
John’s Island Real Estate Company
phone: 509.649.6110
phone: 401.849.3000
phone: 772.231.0900
BOCA/DELRAY BEACH, FLORIDA
PARK CITY/HEBER VALLEY, UTAH
AUSTIN, TEXAS
Ultimate luxury at Seven Bridges – brand new estate homes in a highly
amenitized non-golf community in Boca Raton/Delray Beach area. Generous
features include impact glass, granite or quartz countertops, gourmet kitchens
and a stunning 30,000 sq. ft. club. Low HOA fees, close to world-class
shopping, great schools. Experience Seven Bridges today!
Play Golf Magazine’s 2009 “Best New Private Course,” ski where
Olympians raced, and come home to the glorious views of your luxurious
5,284 sf Rocky Mountain home, being built today on a high plateau in Red
Ledges. As the most successful private community in the Park City area, Red
Ledges offers serious outdoor fun an easy drive from SLC’s hub airport.
Ultimate Luxury on Lake Travis – This 4,492 sq. ft. modern 4-bedroom
home sits on the shoreline of Austin’s favorite lake. Expansive views of
the water & Texas hill country can be seen from every angle of this estate
homesite tucked away on your own private peninsula. This exclusive gated
community is a lakeside opportunity you will not find again.
jrau@suncadia.com
From the $800’s to $2 million
glhomes.com/seven-bridges $2,895,000
www.RedLedges.com
$3,650,000
email: wj@johnsislandrealestate.com
PeninsulaLakeTravis.com
GL Homes
Red Ledges Realty
Exclusive On-Site Real Estate Office
The Peninsula at Rough Hollow
Loren Dickey
phone: 800.875.2179
phone: 877.733.5334
phone: 512.456.3756
email: info@RedLedges.com
To Advertise Call: 800-366-3975
Info@PeninsulaLakeTravis.com
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | M9
ADVERTISEMENT
Distinctive Properties
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
M10 | Friday, March 30, 2018
MANSION
PRIVATE PROPERTIES
RYAN ROSENE (2)
Diet Entrepreneurs’
Estate Seeks $37 Million
The trust of the late entrepreneurs
who brought the Cambridge diet to
the U.S. is listing an oceanfront estate in Pebble Beach, Calif., for $37
million.
Located on 17-Mile Drive, the 2.8-
acre compound dates back to the
mid-1920s and was designed by
George Washington Smith, who was
best known for his Spanish Colonial
Revival style, said listing agent Shelly
Mitchell Lynch of Carmel Realty Co.
The 15,418-square-foot main
house reflects the architecture of
southern Spain in its tile roof, large
central courtyard and carved wooden
ceilings. The main house has five
bedrooms, six full baths and seven
half baths. The home looks out at
the ocean as well as Point Lobos,
and stone steps lead down to the
water’s edge.
The property, known as Villa Eden
del Mar, also includes a 1,806-
square-foot guest house and a twobedroom caretaker’s house. There is
a detached office, and a covered
walkway connects the main house to
the 3,651-square-foot gym.
The seller is the trust of the late
diet and fitness entrepreneurs, Jack
and Eileen Feather. Mr. Feather died
in December at age 90. Mrs. Feather
died in 2016 at 89. The couple
bought the property in 1972, said
their son, John Feather.
Originally from Omaha, Neb., the
Feathers moved to California, where
they started a gym and then expanded to a chain of salons, a mailorder company and later introduced a
liquid diet called Cambridge Plan International, Mr. Feather said. He said
the family is no longer affiliated with
the diet, now known as Cambridge
Weight Plan.
Ms. Lynch shares the listing with
Bill Mitchell, also of Carmel Realty
Company.
—Sarah Tilton
ADVERTISEMENT
Distinctive Properties
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
CALIFORNIA
CALIFORNIA
FLORIDA
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FLORIDA
VIRGINIA
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AFFLUENT READERS WITH A
HOUSEHOLD NET WORTH OF $1M+
YOUR PROPERTY HAS A HOME IN MANSION.
For more information on advertising opportunities, please contact: sales.realestate@wsj.com | 800.366.3975
Source: 2015 Ipsos AffluentSur vey; Total Brand Footprint: Past 30 days, WSJ print, WSJDN website, mobile app, digital
edition/issue, social media websites and other electronic media.
© 201 Dow Jones & Company, Inc. All Rights Reserved.
.
THE WALL STREET JOURNAL.
Friday, March 30, 2018 | M11
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THE WALL STREET JOURNAL.
M12 | Friday, March 30, 2018
MANSION
SHHHHH. THE
PRICE IS A SECRET
MANHATTAN Developer Arnon Katz is marketing unfinished space atop Hampshire House with a price available upon request. Above, a rendering of a 10,000-square-foot penthouse.
websites such as Zillow, Trulia and
Realtor.com don’t accept unpriced
properties, the number of people
who see the listing is significantly
limited.
“I tell clients it’s like being half
pregnant,” said Bradley Nelson, senior vice president of marketing at
Sotheby’s International Realty,
noting that the model is more
common in commercial real estate.
“Do you want to sell your house or
do you not want to sell your
house? You have to decide.”
In Los Angeles, real-estate agents
Gloria Castellanos and Mauricio
Umansky say they’re marketing an
unfinished home that measures
nearly 12,000 square feet. The current owner, Daniela Frittella, began
construction of the eight-bedroom,
10-bathroom home several years
ago but didn’t finish it. Now, she is
looking for a buyer to come in and
finish it off, but decided to withhold
the asking price in an effort to get
the highest offer.
Ms. Castellanos says she believes
the approach has thus far cultivated
a level of intrigue and given her client the opportunity to test the market based on feedback from prospective buyers. They may choose
to attach a listing price later in the
process, she said. Mr. Umansky said
the tack was useful since the asking
price becomes a moving target
when factoring in a buyer’s budget
to complete the work.
Similarly, Charles Pence of Pence
Hathorn Silver, a real-estate agent
in Santa Monica, Calif., says he typically lists properties without formal price tags when they’re spec
homes that are still under construction and might take some time
to complete. “If you set a price and
then the market creeps up and you
have to reset it, it will look bad to
the buyer community,” he says.
“You want to avoid a paper trail.”
Although not new, the strategy is
seldom used today.
“It’s a throwback to an old marketing technique from when it used
to be unfashionable to talk about
your listing price. Like going to a
high-end restaurant with no prices
on the menu, if you had to ask what
it cost, you couldn’t afford it,” said
New York appraiser Jonathan
Miller. “It doesn’t fit with the current orientation of the market,
where there’s been no shame in
wildly overpricing your property
and parading it around.”
Despite misgivings, some owners have had unexpected success
with the strategy.
In Palo Alto, Calif., real-estate
agent Michael Dreyfus listed a
home in 2015 with a price available upon request. The seller
wanted more than $7.5 million. But
Mr. Dreyfus said that $5.5 million
was a more logical asking price
considering the size of the home—
at just 3,375 square feet.
However, the interiors, designed
by hospitality architect Robert Glazier, best known for designing Four
Seasons hotels, were stunning, Mr.
Dreyfus said. If he could just get
buyers through the door, he knew
someone would fall in love with
the home—and consider the
seller’s $7.5 million asking price.
“I didn’t want the price to
shape the opinion of the home,
and I felt that at $7.5 million—and
I did get laughed at a bit—I would
be playing defense rather than trying to create interest,” he said. “I
wanted someone to see the home,
have that experience and then tell
them the price.”
Indeed, one prospective buyer
returned several times even after
learning the asking price. He
bought the house for $7 million.
SPAN ARCHITECTURE AND VIEWPOINT (TOP); BERNARD ANDRE (2)
Continued from page M1
to a select group of agents and individuals around the world who
would be interested…and allow
them to come to us with what they
feel it’s worth.”
Reasons vary for the “priceupon-request” strategy. Like Mr.
Katz, some sellers want the market
to set the price. Others say they
want to maintain a degree of privacy from nosy friends and neighbors in an increasingly transparent
real-estate market.
Still others are trying to cultivate a sense of mystique or exclusivity around the property. And in
some instances, the tactic can also
reflect a disagreement between
the agent and the seller over the
listing price.
Still, some real-estate marketing
experts advise against the strategy, saying it creates an obstacle
to getting a deal. Since listings
PALO ALTO, CALIF. Real-estate agent Michael Dreyfus listed a home in 2015 with a price available upon request. The seller wanted more than $7.5 million, and the home sold for $7 million.
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by majestic oaks and dune grasses captures serene “Serengeti”
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Daniel DeCaro Real Estate Auctions, Inc., licensed Florida Real Estate Broker #AU3074
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