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The Wall Street Journal 7 September 2017

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* * * * * *
DJIA 21807.64 À 54.33 0.25%
NASDAQ 6393.31 À 0.3%
THURSDAY, SEPTEMBER 7, 2017 ~ VOL. CCLXX NO. 57
STOXX 600 373.95 À 0.1%
10-YR. TREAS. g 11/32 , yield 2.108%
OIL $49.16 À $0.50
Business & Finance
T
rump is seen as unlikely
to nominate Cohn as the
next Fed chief, adding to uncertainty over the central
bank’s leadership. Vice Chairman Fischer is resigning. A1
WASHINGTON—President
Donald Trump stunned Republicans on Wednesday when he
overrode pleas from GOP congressional leaders and sided
with Democrats on a proposal
to attach emergency aid for
Hurricane Harvey victims to
measures to keep the government funded and its borrowing
limit suspended until mid-December.
Many homeowners hit by
Hurricane Harvey may soon
find out they are on the hook
for extra payments under
their insurance policies. A1
Facebook said it found “inauthentic” accounts responsible for $100,000 in ad spending that it believes have ties
to Russia, after a review in response to election concerns. A2
By Kristina Peterson,
Siobhan Hughes
and Louise Radnofsky
Drugmaker Insys was
faulted in a Senate panel’s
report stemming from an
investigation into the nation’s opioid crisis. B1
Intel’s appeal of a $1.26
billion EU antitrust fine in
2009 was backed by the
bloc’s highest court. B4
U.S. stocks rebounded,
boosted by energy shares.
The Dow rose 54.33 points
to close at 21807.64. B11
Toys “R” Us has retained
lawyers from Kirkland & Ellis
to help restructure $400 million in debt due next year. B3
World-Wide
Trump struck a deal with
Democrats on attaching Harvey aid to measures to keep
the government funded and
its borrowing limit suspended until mid-December,
stunning Republicans. A1
The president called on
Democrats to support him in
overhauling the tax code. A4
House Speaker Ryan said
he would work to find a
compromise to protect
“Dreamers” following the
decision to end DACA. A4
Hurricane Irma walloped
several Caribbean islands,
while officials in Florida
pressed residents to follow
calls for evacuations. A6
A U.S. proposal for new
U.N. sanctions on North Korea would block oil and textile trade and freeze assets
of Kim and other officials. A7
China is boosting its monitoring for signs of radioactive fallout from North Korea’s latest nuclear test. A7
The White House told
lawmakers it is stepping
back from ending a freetrade pact with Seoul. A7
The EU’s top court ruled
that Central European states
have no legal grounds to reject
a refugee-relocation policy. A8
Senators conducted a
hearing on proposals to repair, rather than repeal, the
Affordable Care Act. A4
The U.S. military apologized for dropping leaflets
in Afghanistan with an image offensive to Muslims. A7
Qatar officially opened a
major seaport to help secure
imports after its Arab neighbors cut off trade routes. A9
CONTENTS
Business News.. B3,6
Capital Account.... A2
Crossword.............. A14
Heard on Street. B12
Life & Arts....... A11-13
Markets............. B11-12
Middle Seat............ A9
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News............. A2-6
Weather................... A14
World News........ A7-9
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
ALEX WONG/GETTY IMAGES
Sanofi has ended its development of two Zika virus
vaccines, citing a decline in
new infections and limits on
U.S. government funding. B1
Amazon’s bid to revive
Whole Foods sales is showing
some signs of success, but
prices on many items still
top those of competitors. B3
GOLD $1,333.90 g $5.30
EURO $1.1917
YEN 109.22
Trump Makes
Deal on Debt,
Irking GOP
What’s
News
Peltz laid out a detailed
case for why P&G should give
him a board seat, deeming
the firm incapable of navigating a changing landscape. B3
HHHH $4.00
WSJ.com
Senate Minority Leader Chuck Schumer with President Donald Trump at the White House Wednesday.
Mr. Trump’s decision to
strike a deal with Democrats
upended the partisan alliances
that have long set the boundaries of congressional policy-making, opening up new possibilities for bipartisan deal-making
if Democrats can again persuade Mr. Trump to bypass Republican leaders.
For months, Mr. Trump had
suggested that he might work
with Democrats if Republicans
couldn’t advance his legislative
priorities, but he always pulled
back at the last minute. The Republican president’s move
Wednesday raised questions
about whether he will now turn
to Democrats to reach deals on
tax reform and immigration.
The startling deal Wednesday, reached after a meeting between Mr. Trump and congressional leaders in the Oval Office,
was driven by an urge to present a unified government at a
time of crisis, as millions of
Americans braced for Hurricane
Irma’s wrath and others struggled to rebuild after Harvey,
GOP leaders said.
If approved by Congress, the
agreement would defer the
threat of a partial government
shutdown and a default on the
country’s debt until Dec. 15 and
dispatch the first $7.85 billion
installment of Harvey relief,
clearing the three most pressing items from the crowded
September legislative agenda.
“We had a great meeting,”
Mr. Trump said during a North
Dakota speech Wednesday.
“And we walked out, and everybody was happy. Not too happy,
Please see TRUMP page A4
Speaker Ryan seeks a
‘Dreamer’ accord...................... A4
Bipartisan health-law fix gets
airing............................................... A4
Facebook says political ads
linked to Russia........................ A2
Cohn Now Seen as Unlikely The Puzzle of Low Inflation
Pick to Be Fed Chairman
The world’s major nations are reporting stronger economic growth.
Yet what was once thought to be growth’s constant companion is
strangely missing: inflation. B1
BY MICHAEL C. BENDER
AND HARRIET TORRY
WASHINGTON—President
Donald Trump is unlikely to
nominate Gary Cohn, his top
economic adviser, as the next
Federal Reserve chairman, according to people familiar
with the president’s thinking,
adding to the uncertainty over
the U.S. central bank’s leadership and policies next year.
Mr. Trump told The Wall
Street Journal in July that he
was considering Mr. Cohn as a
Hurricane
Policy Rules
Set to Hit
Homeowners
BY NICOLE FRIEDMAN
AND LESLIE SCISM
Tens of thousands of homeowners hit by Hurricane Harvey may soon find out they are
on the hook for extra payments
under their insurance policies,
and that number could rise into
the millions if Hurricane Irma
sweeps through Florida.
The storms are expected to
trigger widespread use of
“hurricane deductibles,” littleknown provisions that allow
insurers to shift thousands of
dollars of damage costs per
home onto consumers.
Homeowners’
insurance
policies in coastal states often
allow insurers to charge consumers a higher deductible if
certain catastrophes like hurricanes occur.
These deductibles were
widely put in place after Hurricane Katrina in 2005 and
have been standard in many
states for years. But they have
rarely been triggered on a
large scale because few hurricanes have landed in the U.S.
over the past decade.
Harvey made landfall as a
Category 4 hurricane last
month before weakening to a
tropical depression as it moved
inland. Irma, a Category 5 hurricane, made landfall in the
northeast
Caribbean
on
Wednesday and could reach
the U.S. later this week. Florida
Please see INSURE page A6
Irma heads toward Florida... A6
Heard on the Street: Hurricanes
push Fed off course..................... B1
potential successor to Fed
Chairwoman Janet Yellen,
whose term as central bank
chief expires in early February.
The change in thinking
comes at a time of great uncertainty over the top ranks of
the world’s most important
central bank. Fed Vice Chairman Stanley Fischer said
Wednesday he will resign in
mid-October for personal reasons, adding another vacancy
to the three others on the
powerful seven-member Fed
board of governors. His depar-
ture accelerates Mr. Trump’s
opportunity to put his stamp
on the central bank.
Candidate Trump was critical of the central bank and Ms.
Yellen last year, publicly chiding her during the campaign
for keeping interest rates too
low, which Mr. Trump said
benefited Democrats.
The shift in Mr. Cohn’s
prospects for the top Fed job
Please see COHN page A2
Change from a year earlier
Gross
4%
domestic
2
product,
adjusted
0
for inflation
–2
2011
Consumer
prices,
excluding
food and
energy
U.S.
’12
Eurozone
’13
’14
’15
’16
’17
’15
’16
’17
2%
1
0
2011
’12
’13
Sources: U.S. Commerce Department; Eurostat
’14
THE WALL STREET JOURNAL.
Greg Ip: Why the U.S. economy
shrugs off politics....................... A2
NORTH KOREA’S PH.D. STRATEGY
How did Pyongyang advance its nuclear weaponry? The answer may lie in scientists it sends abroad
BY JEREMY PAGE AND ALASTAIR GALE
HARBIN, China—When North Korea
tested what it said was a domestically
produced hydrogen bomb on Sunday—a
week after launching its 18th ballistic
missile of the year—it was a reminder of
a conundrum at the heart of the country’s nuclear program. How has it advanced so rapidly despite concerted international efforts to keep weapons-
related technology out of its hands?
The answer may lie in expertise
brought home by North Korean scientists
who studied abroad, especially in China,
sometimes in apparent violation of 2016
United Nations sanctions that ban teaching North Koreans certain subjects.
Hundreds of North Korean scientists
have studied outside the country in recent years, according to a Wall Street
Journal review of official figures, aca-
Hey, Hey, Ho, Ho! This Bland
Maple Syrup Has Got to Go
i
i
i
Colleges pamper picky eaters with local,
sustainable fare; aeroponic microgreens
BY QUINT FORGEY
AND PATRICK MCGROARTY
Students returning to the
University of Texas at Austin
this fall will have twice as much
help wrestling with
some of the big
questions that college presents.
For instance, does
water contain gluten? And, is all food
genetically modified?
Those are among
a growing list of
food-related student
queries
that
prompted UT Austin A bunch
to hire a second campus dietitian ahead of the fall
semester. The first, Lindsay Wilson, was overwhelmed with requests to craft personalized
menus for picky eaters, to debunk urban myths about the
contents of food the school
serves and to recommend
healthier lifestyle choices.
“I have had a little pushback
from some very feisty vegans,”
she said.
College students
across the U.S. are
making some precise
demands of school
chefs and dining
halls. For a generation animated by a
desire to make a difference and raised to
believe
personal
wellness is paramount, a meaningful
of carrots academic experience
begins with minding
what you eat.
That’s inspired the University
of Houston to spend $6,500 to
build two hydroponic grow towers, vertical gardens that use
Please see FOOD page A10
demic papers and data from universities,
many in areas the U.N. says could help
Pyongyang’s weapons programs.
Early in its six-decade quest for a nuclear arsenal, North Korea relied on technology and experts from the Soviet
Union, then later from Iran and Pakistan.
That it can now draw on its own scienPlease see SCIENCE page A10
U.S. pushes North Korea oil embargo.... A7
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12.4%
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oracle.com/applications
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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
A2 | Thursday, September 7, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip
Why the U.S. Economy Shrugs Off Politics
war fall in the category of
unprecedented and unthinkable. Faced with such risks,
the usual reaction is to assume they won’t happen. Yet
that assumption becomes a
risk in itself: It alleviates the
pressure to prepare for either and multiplies the damage if they do occur.
B
ecause political risk
has been a constant, it
has lost some of its
shock value. Investors have
in effect built that risk into
their assumptions; their demand for safety is one reason government bond yields
around the world are so low.
Since 2009, hedge funds
as a group have positioned
themselves for another meltdown like the subprime bust,
says Jason Thomas, head of
economic research at Carlyle
Group, a private-equity manager. But “the same psychological factors that make
‘next subprime’ investment
strategies seem more appealing,” he says, have also led
businesses to favor cash retention or share buybacks
over capital expenditure, and
policy makers to regulate
more. That depresses growth
but also makes the economy
less vulnerable to sudden
shifts in sentiment.
As a result, hedge-fund
Facebook: Political
Ads Linked to Russia
BY SHANE HARRIS
AND DEEPA SEETHARAMAN
WASHINGTON—Facebook
Inc. said it has identified
about 500 “inauthentic” accounts
responsible
for
$100,000 in advertising spending that it believes have ties to
Russia, following a review of
ad buying on the site in response to intelligence community concerns about Russian
activity during the 2016 U.S.
election.
The findings mark the first
time that Facebook has acknowledged that Russian actors may have used its platform during the presidential
campaign. The conclusion is a
shift from July, when a Facebook spokesman said the company had no evidence that
Russian entities bought ads
targeted at Americans on the
platform during the election
season.
The social-media giant said
Wednesday that the ads it
identified didn’t typically reference any particular political
candidate.
Rather, the company’s re-
view found that the ads focused on “amplifying divisive
social and political messages
across the ideological spectrum—touching on topics from
LGBT matters to race issues to
immigration to gun rights.”
Facebook officials provided
their findings to House and
Senate investigators looking
into Russian interference in
the presidential election, according to people familiar
with the matter.
For months, congressional
investigators have been probing potential links between
Russian actors and the Trump
presidential campaign’s efforts
to direct messages and ads to
key voters.
Moscow has denied meddling in the U.S. election, and
President Donald Trump has
denied his campaign colluded
with Russia.
Facebook has been under
fire since the 2016 campaign
for what critics described as
its lax attitude toward fabricated news reports that
claimed, for example, that
Pope Francis had endorsed Mr.
Trump.
Political Anxiety, Financial Calm
Uncertainty about economic policy has been elevated for the past
decade even as financial anxiety plumbs new lows.
Index of economic policy
uncertainty*
Chicago Board Options Exchange
Volatility Index (VIX)**
250
100
200
80
150
60
100
40
50
20
0
0
2000
2010
2000
2010
*Index is based on newspaper mentions of economic policy uncertainty. **VIX is based on the
cost of derivatives that hedge against large stock market moves.
Sources: Scott Baker, Nicholas Bloom & Steven Davis (economic policy uncertainty); CBOE (VIX)
THE WALL STREET JOURNAL.
performance has suffered
from strategies designed to
profit from a meltdown that
has yet to happen. With bearish psychology already so
prevalent, actual selloffs have
been brief and the VIX, the
market’s so-called fear gauge,
has been subdued.
Those who watch politics
and policy for a living—a
sizable contingent on Wall
Street and in Washington—
tend to overestimate how
many ordinary people do the
same, and thus how much
their behavior will change
because of politics.
In market economies, the
natural rhythm of the business cycle easily drowns out
politics. Big policy actions
such as rising trade barriers
or reduced immigration do
take their toll, as the latest
British data suggest, but
slowly, not in a spasm of
panic selling and recession.
What would overwhelm
these coping mechanisms?
Something previously unfathomable, like nuclear war.
No atomic weapons have
been used since the U.S.
dropped them on Hiroshima
and Nagasaki. The public assumes global leaders won’t
let it happen again. As Capital Economics notes in a recent report, the market
barely sold off during the Cuban missile crisis in 1962, the
closest the world has come
to nuclear war since 1945.
A nuclear attack on a U.S.
ally, city or electrical grid via
electromagnetic pulse is so
alien to a business’s frame of
reference that it can’t be
planned for.
But North Korea may be a
less rational actor than the
Soviet Union was in 1962. Mr.
Trump’s willingness to go to
war is also being underestimated, says Marc Sumerlin, a
former economic aide to
President George W. Bush
who runs Evenflow Macro.
T
o say there is no military solution is to say
Americans must accept living within missile
range of a country whose
leader may be unstable, he
says: “That’s not as easy a
decision for someone who’s
taken an oath to defend the
country as it is for someone
sitting in a think tank.”
As with nuclear war, the
assumption the U.S. won’t default is based on the fact that
it hasn’t done so since 1814,
at least deliberately. It delayed payment on some Treasury bills in 1979 because of a
technical glitch. Its refusal to
repay some bonds in gold in
1933 also is considered by
some a type of default.
The Fed and Treasury in
2011 drew up contingency
plans if the debt ceiling
wasn’t raised to prioritize
debt payments over other
obligations such as Social
Security benefits. Yet the
deepening dysfunction of
U.S. lawmaking means default by accident is a recurrent threat.
Political risk is part of a
new normal. It takes its toll
slowly and at the margin as
decisions to hire or invest
are deferred, rethought or
resized. But until the unthinkable happens, don’t expect it to tank the economy.
Students Balk at Flag Ban at Minnesota School Parking Lot
DAVE SCHWARZ/ASSOCIATED PRESS
Just how
much political
risk can the
U.S. economy
tolerate? Quite
a bit, it seems.
The federal government
could shut down in a few
weeks for lack of a budget. It
could default on its obligations if the debt ceiling isn’t
raised. Trade treaties with
Mexico, Canada and Korea
may be torn up. North Korea
has tested an apparent Hbomb and threatened to use
it. And overseeing these
challenges is an unpredictable and often-divisive president with associates embroiled in an investigation
over ties to Russia.
Yet economic growth has
remained largely unperturbed and, judging by the
latest gross domestic product numbers, may have even
accelerated ahead of two major hurricanes. Stock prices
remain near record highs.
The reason for the dichotomy is that the impact of political risk depends on the
risk. Government shutdowns,
protectionism, scandals, even
conventional wars have happened before and are thus
knowable and sometimes
quantifiable to businesses,
consumers and investors.
Federal default or nuclear
STAR-SPANGLED PROTEST: Rocori High School students in Cold Spring objected to a ban on all flags and banners in vehicles,
imposed after Confederate flags began showing up last spring. Officials don’t plan to discipline the students for the protest.
COHN
Continued from Page One
arises largely from his criticism of Mr. Trump’s response
to the violence in Charlottesville, Va., the people familiar
with the matter said.
The president said in the
Journal interview that he was
also considering whether to
nominate Ms. Yellen for a second term. Mr. Trump has told
people that he is impressed
with Ms. Yellen, leaving them
with the sense he might ask
her to serve another term.
The change in Mr. Cohn’s
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chances potentially bolsters
her odds. Other names that
have been discussed by Mr.
Trump and his team as possible nominees to top Fed posts
include former governors Lawrence Lindsey and Kevin
Warsh, former BB&T Bank
chief executive John Allison,
and Stanford University economist John Taylor, according
to people familiar with the
discussions. The White House
has been considering nominating Marvin Goodfriend, a former research director at the
Richmond Fed who is a professor at Carnegie Mellon University, to the Fed’s board, the
people familiar said. One possibility would be to nominate
an incoming board member,
such as Mr. Goodfriend, or a
current board member, such
as Fed governor Jerome Powell, to the vice-chair post.
Mr. Cohn, director of the
National Economic Council,
has been running the White
House search for Fed chief. A
senior administration official
said “the president is considering several candidates.” Mr.
Cohn’s office directed questions to the White House.
White House spokeswoman
Natalie Strom said Mr. Cohn is
“focused on his responsibilities…including a once-in-a-lifetime opportunity to deliver
meaningful tax reform that
creates jobs and grows the
economy.” Mr. Cohn may have
doomed his chances for the
top Fed job with comments he
made to the Financial Times
last month, according to people close to the president.
The former investment
banker had told associates
that he was disgusted by Mr.
Trump’s performance immediately after the president’s
combative news conference on
Aug. 15 about the Charlottesville events, according to a
person familiar with the matter. Mr. Cohn stood near Mr.
Trump at the news conference
in the lobby of Trump Tower.
Asked if he considered resigning after the news conference, Mr. Cohn told the Financial Times that he was
“reluctant to leave my post.”
He also said the Trump administration “can and must do better” to condemn hate groups.
“Citizens standing up for
equality and freedom can never
be equated with white supremacists, neo-Nazis and the KKK,”
Mr. Cohn told the newspaper.
Mr. Trump wasn’t aware
such a blunt critique was coming, said one person familiar
with the president’s thinking.
One White House official said
the president visibly bristles
at the mention of his economic adviser. Mr. Trump had
been eager to talk about the
possibility of appointing Mr.
Cohn as the next Fed chairman
when he spoke about it during
the Journal interview. At the
time, the president said he
had “gained great respect for
Gary” during their time together in the West Wing.
A White House official said
that Mr. Cohn, a former Goldman Sachs executive, may be
able to repair his relationship
with the president.
Mr. Cohn is one of the key
White House hands shepherding an overhaul of the federal
tax code through Congress. If
successful, Mr. Cohn may find
himself in better standing, the
person said.
Meanwhile, Mr. Trump has
nominated Randal Quarles, a
private-equity executive who
served in the Bush administrations, for one opening on the
Fed board, but has yet to
name his other picks.
A Senate committee is set
to vote on Mr. Quarles’ nomination as the Fed’s vice chair
for bank regulation on Thursday, and he is expected to ultimately win confirmation.
Nominations for all board
positions, including the chair
and vice chair, are subject to
Senate confirmation.
Mr. Fischer’s departure
gives the White House a wider
range of options in considering how to remake the Fed,
but it also adds to the challenge Mr. Trump faces in managing the leadership turnover
without roiling markets.
—Nick Timiraos contributed
to this article.
CORRECTIONS AMPLIFICATIONS
The name of payment-processing company Vantiv Inc.
was misspelled as Vantic in a
Banking & Finance article on
Wednesday about a new Citi-
group Inc. services unit.
The Deferred Action for
Childhood Arrivals program
began in 2012. In some edi-
tions Wednesday, a photo caption with a Page One article
about the ending of the program incorrectly suggested it
began in 2014.
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.
Thursday, September 7, 2017 | A3
* * * *
JAKE PARRISH/ASSOCIATED PRESS
U.S. NEWS
A dearth of teachers has plagued U.S. public schools. All 50 states and Washington, D.C., have reported teacher shortages since 2005.
States Lower the Bar for Teachers
Nationwide shortage
forces some districts
to loosen requirements
to step into classroom
BY JOSEPH DE AVILA
AND TAWNELL D. HOBBS
In the face of a worsening
teacher shortage, several
states around the country are
loosening requirements for
credentials that will make it
easier to teach in publicschool classrooms.
Minnesota, Arizona and Illinois each revamped their licensing process this year to
deal with a scarcity of educators. Utah did so last year, and
Connecticut now is weighing
whether to overhaul its certification process for the first
time in two decades.
Kansas has relaxed the requirement for public-school
teacher candidates in certain
fields, no longer requiring
them to complete a preparatory program before licensing
as long as they have a bachelor’s degree, relevant work experience and a job offer from
a school district. Arizona and
Utah have given more discretion to local districts.
Oklahoma and California
have turned to issuing more
emergency teaching certificates
as a way to fill vacancies. “This
is something that absolutely is
growing exponentially,” said
Joy Hofmeister, Oklahoma’s
elected state school superintendent, a Republican.
A dearth of teachers has
plagued U.S. public schools
across the nation for the past
two decades, mainly in hardto-fill disciplines such as math,
science, special education and
English as a second language.
All 50 states and Washington,
D.C., have reported teacher
shortages since 2005, according to federal figures.
Rural Towns Hit
In Colorado, where the unemployment rate is the second
lowest in the country, rural
towns are having an especially
hard time finding teachers.
Kendra Anderson, superintendent of schools in Otis,
Colo., said it was particularly
tough this year to fill positions
in her district in a ranching
town in the northeast corner
of the state.
She had no luck finding
candidates at job fairs this
year, which in the past turned
up several good prospects.
“This was by far the most
difficult” year, she said.
The shortages come at a
time of low unemployment,
with industries from construction to trucking to prisons
struggling to find workers.
Recruitment is especially difficult for teaching, known for
its low salaries and difficult
state-issued credentials, say
experts and state education
Opioids Take a Toll on
Worker Participation
BY BEN LEUBSDORF
New research suggests a
significant portion of the
post-1990s decline in laborforce participation among
Americans in their prime working years could be linked to the
opioid epidemic.
Conducted by Princeton University economist Alan Krueger, the study found that a national increase in opioid
painkiller prescriptions between 1999 and 2015 may have
accounted for about 20% of the
decline in workforce participation among men ages 25 to 54,
and roughly 25% of the drop in
prime-age female workforce
participation.
“The opioid epidemic and
labor-force participation are
now intertwined,” Mr. Krueger
said. “If we are to bring a large
number of people back into the
labor force who have left the
labor force, I think it’s important that we take serious steps
to address the opioid crisis.”
Mr. Krueger, who was the
top White House economist for
several years under President
Barack Obama, described the
research as provocative and
speculative, and said he
couldn’t prove cause and effect
due to limitations in the available data. But, he added: “It’s
certainly something that deserves serious attention.”
He will present his findings Thursday at the Brookings
Institution in Washington. An
earlier version of the paper
was presented at a Federal Reserve Bank of Boston conference last fall, showing that
nearly half of prime-age American men not in the labor force
were taking pain medication.
His analysis more broadly
attributes the postrecession
decline in the U.S. labor-force
participation
rate—which
stood at 62.9% in August, according to the Labor Department, down from a peak of
67.3% in early 2000—to an aging population and other
trends that predate the
2007-09 downturn.
That’s in line with other research that has assigned primary responsibility for the decline to demographics and
other structural forces, though
some economists argue that
lingering weakness in the economy has continued to depress
labor-force participation.
But Mr. Krueger’s latest
findings suggest that a surging
addiction to painkillers may be
affecting the economy in a
meaningful way.
“Labor-force participation is
lower in areas of the U.S. with
a high rate of opioid prescriptions, and labor-force participation fell more over this 15year period in areas with a
high rate of opioid prescriptions,” he wrote in the paper.
Senate report faults Insys... B1
The district, which has 245
students, ended up hiring two
teachers on substitute licenses
who are in the process of applying for emergency credentials, said Ms. Anderson. A third
teacher she hired has a substitute license and is pursuing full
teacher credentials, she said.
The Colorado Department
of Education has held town
halls across the state to solicit
feedback on the shortage.
State education officials are
now considering proposing legislation that would institute a
state minimum wage for entrylevel teacher positions or a
statewide salary schedule to
help close the pay gap.
—Joseph De Avila
officials. Some school administrators say that higher
teacher wages could help offset vacancies, but such a recurring cost could strain already tight budgets.
Typically states require certification for public-school
teachers to ensure that educators have proper qualifications.
But enrollment in teacher
preparation programs has also
plunged 42% to 418,573 in the
2014-15 school year from six
years earlier, according to the
latest figures from the U.S. Department of Education.
The drop in qualified applicants has forced states to take
action. Arizona’s Republican
Gov. Doug Ducey signed legislation in May giving local
school administrators the
power to determine teacher
certification. The new system
allows candidates who have a
higher-education degree and
significant experience in a
subject matter, including having taught a related course
for the past two years, to get
credentials.
The measure was opposed
by the state’s elected superintendent of public instruction,
Diane Douglas, a Republican.
“In my opinion, lowering
the standards for new teachers is not the way to correct
the problem,” she said in a
statement before the bill’s
passage. “Instead, I have recommended that we focus on
increasing teacher salaries to
help retain and attract the
best candidates.”
With no end in sight for
Connecticut’s teacher shortage
that has been worsening for
the past five years, Dianna
Wentzell, commissioner of
Connecticut’s Education Department, said she wants to
simplify the teacher certification process, such as allowing
teachers to instruct more than
one subject in science.
Ms. Wentzell said it is important for every teacher to be
prepared to teach, but added it
is equally important to make
sure students have enough
teachers.
“Right now we aren’t getting that right,” Ms. Wentzell
said. “We’re erring on the side
of caution at the certification
level.”
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A4 | Thursday, September 7, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Bipartisan Health Fix Gets Airing
Senators hold hearing
to discuss proposals to
improve Obamacare,
not terminate it
formally authorize subsidy
payments to insurers and
loosen requirements governing
the law’s state waivers.
Mr. Alexander hopes to pass
legislation with the panel’s top
Democrat, Sen. Patty Murray
of Washington, before the end
of the month, when insurers
must sign contracts to participate in next year’s markets.
If Mr. Alexander succeeds,
it would mark the first major
bipartisan action on health
care following seven years of
partisan conflict over the
health-care law that was
championed by former President Barack Obama, a Democrat. It must first overcome
stiff opposition from some Republicans, who view the subsidies as bailouts propping up a
failing law.
At the same time, conservative lawmakers, still hoping to
repeal the law, are focusing on
a proposal by Sens. Bill
Cassidy (R., La.) and Lindsey
BY MICHELLE HACKMAN
WASHINGTON—A hearing
that unfolded Wednesday in a
Senate office building marked
a first on Capitol Hill in seven
years: a bipartisan discussion
on ways to repair, not repeal,
the Affordable Care Act.
Convened by U.S. Sen. Lamar Alexander (R., Tenn.),
chairman of the Senate health
committee, the hearing was
the first of four such gatherings on options to stabilize the
2010 law’s insurance marketplaces, where people who
don’t get coverage through
work purchase insurance.
Mr. Alexander’s proposal,
laid out at the beginning of
Wednesday’s hearing, would
Graham (R., S.C.) that would
leave major health-care decisions to the states. Messrs.
Cassidy and Graham also face
a deadline at the end of the
month because a legislative vehicle allowing senators to pass
the bill with a simple majority,
rather than the 60 votes usually required, expires Sept. 30.
A bipartisan proposal would
also need to win approval
from President Donald Trump,
a Republican who has threatened to end the subsidies the
bill is designed to preserve.
Democrats support the subsidies, but they are balking at
Mr. Alexander’s suggestion
that his package include more
flexibility for states to opt out
of the law’s rules.
That leaves Mr. Alexander’s
bill with a narrow path to passage. But on Wednesday, he
cast it as a reasonable compromise that has benefits and
costs for both sides.
“To get a result, Democrats
will have to agree to something…that some may be reluctant to support,” Mr. Alexander said in an opening
statement. “And Republicans
will have to agree to something—additional
funding
through the Affordable Care
Act—that some may be reluctant to support.”
At the center of the debate
are state insurance commissioners, and Mr. Alexander and
Ms. Murray invited five who
generally support continuing
cost-sharing subsidies. Though
they are elected or appointed
by governors, state commissioners often consider themselves in the mold of civil servants.
The commissioners, from
states including Pennsylvania
and Oklahoma, told senators
that the cost-sharing subsidies, which lower out-ofpocket costs for low-income
consumers, are needed to
guarantee stability next year.
In Virginia, Another
Insurer Scales Back
Virginia became the latest
state at risk of having regions that will lack Affordable
Care Act exchange plans next
year, after a small insurer announced it will scale back the
area where it expects to offer
marketplace insurance.
The area currently with no
2018 exchange insurer includes
48 counties and parts of six
more, as well as 15 cities that
are independent of counties,
according to a state regulator.
The decision by Optima
Health, owned by major hospital system Sentara Healthcare, follows earlier exchange
withdrawals by national players Anthem Inc., Aetna Inc.
and UnitedHealth Group Inc.
—Anna Wilde Mathews
ACA Outreach Groups Brace for Challenge
Democrats and activists are
trying to promote the Affordable Care Act’s open-enrollment period and raise money
for outreach following a
Trump administration decision
to cut millions of dollars from
programs that help people
sign up for health coverage.
That outside effort, unfolding alongside a push on Capitol Hill to restore some of the
funds, includes more than
1,500 volunteers organizing on
social-media sites under the
name Indivisible ACA Signup
Project, seeking to promote
the open-enrollment season
beginning Nov. 1.
Such efforts are likely to
fall far short of the outreach
campaigns undertaken by the
Obama administration, which
spent $100 million for last
year’s open signup period. But
they reflect an attempt to leverage the ACA’s rising popularity and keep up enrollment
on the federally run health exchanges at a time when the
groups say the administration’s actions could cause the
markets to fall.
Organizations such as Protect Our Care, a coalition focused on bolstering the ACA,
are helping lead the effort.
Andy Slavitt, former acting
administrator of the Centers
for Medicare and Medicaid
Services in the Obama administration, is also involved, people close to the planning said.
Outside efforts to boost the
ACA gained urgency after the
CHRIS URSO/TAMPA BAY TIMES/ZUMA PRESS
BY STEPHANIE ARMOUR
A health navigator, right, worked with a college student at a health-insurance enrollment event in Tampa, Fla., last November.
Trump administration last
week said it was reducing advertising for the open-enrollment period by 90%, from
$100 million last year. The
Health and Human Services
Department also said it would
reduce grants to outreach
groups, called navigators, that
help people sign up for coverage and tax credits.
That has forced the naviga-
tor groups to suspend training
and weigh layoffs, their leaders said, adding that they had
initially been told by federal
officials their funding levels
would be similar to last year.
“We have a staff meeting
Friday, and I don’t know if
we’ll have staff,” said Shelli
Quenga, program director at
the Palmetto Project, a nonprofit in North Charleston,
S.C., that received about $1
million last year.
This year’s open enrollment, which extends through
Dec. 15, could be crucial for
the health of the ACA’s individual insurance markets.
Lackluster signups could cause
insurers to raise customers’
premiums if they don’t get
enough younger, healthier consumers to offset the costs of
TRUMP
Trump Appeals to
Democrats on Taxes
ALEX WONG/BLOOMBERG NEWS
Continued from Page One
because you can never be too
happy, but they were happy
enough. And it was nice to see
that happen for a change.”
However, Mr. Trump’s decision to align with Democrats
over the objections of GOP leaders and a member of his cabinet
is likely to inflame tensions between the president and his fellow Republicans. Just hours
earlier, House Speaker Paul
Ryan (R., Wis.) had called Democrats’ proposal to combine
Harvey aid and a three-month
debt limit increase “ridiculous”
and “unworkable.”
Former Senate Majority
Leader Trent Lott said it was
“terrible” for Mr. Trump to undercut his fellow Republicans,
particularly when their partisan
adversaries were witnesses to
it. “The president should not do
that,” Mr. Lott, a Republican,
said. “It is embarrassing to Republican leadership and it
shows a split.”
During the Oval Office meeting, Mr. Ryan, Senate Majority
Mitch McConnell (R., Ky.),
House Majority Leader Kevin
McCarthy (R., Calif.) and Treasury Secretary Steven Mnuchin
all pushed for a longer suspension of the debt limit increase,
according to people briefed on
the meeting, with Mr. Trump
cutting off Mr. Mnuchin at one
point.
Republicans initially advocated for an 18-month extension, pushing the next vote on
the debt limit until after next
year’s midterm elections. When
Democratic leaders, Sen. Chuck
Schumer of New York and Rep.
Nancy Pelosi of California, rejected that, the GOP leaders
suggested a six-month exten-
older and sicker people.
President Donald Trump has
said that in light of the Republican Congress’s failure to repeal
the law, his administration
could act to let the law implode.
The law’s critics say the administration is boosting accountability for the ACA outreach efforts. “There’s been so
little oversight of the program,”
an HHS official said last week.
President Donald Trump met Wednesday with a bipartisan group of congressional leaders and
members of his economic team, including Treasury Secretary Steven Mnuchin, in middle at left.
sion.
With congressional leaders
at a standstill, they planned to
agree to disagree, according to
a person briefed on the meeting. Instead, the president accepted the deal from Democrats
and later singled out only those
two leaders in announcing the
deal. “We had a very good
meeting with Nancy Pelosi and
Chuck Schumer,” he said.
Democrats said Mr. Trump
had simply decided they were
more persuasive. “To his credit,
he went with the better argument,” Mr. Schumer told reporters. “Today was a good day in a
generally very partisan town.”
On Capitol Hill, Republicans
publicly muted their frustration
over the deal and accepted Mr.
Trump’s decision, with some
dismissing any suggestion that
a rift had opened between the
president and GOP lawmakers.
“The president can speak for
himself, but his feeling was that
we needed to come together, to
not create a picture of divisiveness at a time of genuine national crisis,” Mr. McConnell
told reporters.
But privately, Senate Republican aides said the deal registered as a rebuke, following a
stormy summer in which Senate
Republicans failed to repeal the
Affordable Care Act and chastised Mr. Trump for his remarks
equating white nationalists with
counterprotesters in Charlottesville, Va. Mr. Trump, who later
condemned white supremacists,
continued the feuding in tweets
attacking GOP senators.
Mr. Trump picked a sensitive
subject on which to take his
stand Wednesday. Republicans
have made addressing debt and
deficits a cornerstone of their
governing philosophy.
Former House Speaker John
Boehner (R., Ohio) was vilified
by conservatives for his budget
and debt limit deals with President Barack Obama, a Democrat, which helped build pressure leading to Mr. Boehner’s
resignation in September 2015.
The prospect of having to
vote again in three months to
raise the borrowing limit—and
to do so less than a year before
the 2018 elections, and at a
time when Democrats will seek
to extract concessions on mustpass items like a new spending
bill—represented a major concession, some GOP lawmakers
said. “The Pelosi-SchumerTrump deal is bad,” Sen. Ben
Sasse (R., Neb.) said in a statement.
If the Senate makes changes
Ryan
Seeks a
‘Dreamer’
Accord
BY LAURA MECKLER
AND BYRON TAU
WA S H I N G T O N — H o u s e
Speaker Paul Ryan said he
would work to find a compromise that protects young undocumented
immigrants
brought to the U.S. as children, suggesting the measure
may be paired with additional
border security.
But a key question is whether
Republicans will insist any border security move include funding for President Donald
Trump’s promised wall with
Mexico, a proposal that Democrats have pledged to block. Mr.
Ryan (R., Wis.) didn’t say.
The speaker’s comments on
Wednesday came in the wake
of Mr. Trump’s decision Tuesday to end an Obama-era program called Deferred Action
for Childhood Arrivals, or
DACA, that gives some
800,000 young, undocumented
immigrants work authorization and protections from deportation. The Republican
president gave lawmakers six
months to act before the protections begin to expire.
“It’s only reasonable and
fitting that we also address
the root cause of the problem,
which is borders that are not
sufficiently controlled, while
we address this very real and
very human problem that’s
right in front of us,” Mr. Ryan
told reporters.
That echoes the views of
many in his party who are reluctant to grant a long-sought
Democratic priority without
adding some of the enforcement measures Republicans
favor. But Republicans are divided, with some opposing any
action to legalize those in the
U.S. illegally, others supporting the idea without conditions and many in between.
Democratic congressional
leaders insisted on an up-ordown vote for the Dream Act,
which would offer legalization
and a path to citizenship for
young people brought to the
U.S. as children who meet certain qualifications, the so-called
Dreamers. If there is no action
this month, Democrats said
they would try to attach the
provision to other legislation.
“Congress has an ability and
obligation to act,” Senate Minority Leader Chuck Schumer
(D., N.Y.) said at a news conference Wednesday alongside at
least 50 Democratic lawmakers
from both houses of Congress.
President Donald Trump
called on Democrats to support
him in overhauling the tax code
on Wednesday, fresh off a
debt-ceiling and spending deal
with the party leaders that
amounted to an end-run around
top Republican lawmakers.
Speaking in North Dakota,
Mr. Trump was joined onstage
by Sen. Heidi Heitkamp, a rare
Democratic senator who has
signaled she could back his
still-forming tax proposal.
While Republican leaders in
Congress emphasize a broader
tax overhaul that would lower
tax rates while removing some
tax breaks, Mr. Trump homed
in on tax cuts, promising lower
burdens on businesses, estates
and individuals. The Trump ad-
ministration has released few
details on the plan and top
policy makers huddled with the
president earlier this week.
The GOP-controlled Senate
could pass a tax bill as long as
it secured support from 50 or
51 of the Republican party’s 52
senators there, using a parliamentary procedure known as
reconciliation, rather than the
60 votes usually needed to advance legislation.
But Sen. John Cornyn, a
Texas Republican and member
of the Senate leadership team,
said Wednesday that he preferred to focus on getting
votes from some Democrats,
adding that such an approach
would free lawmakers from
some of the limits of the reconciliation procedure.
Asked if he thought that
was possible, he replied: “We’re
going to try.”
—Louise Radnofsky
to the House’s Harvey bill to
add the debt-ceiling and funding provisions and passes it, the
House must then approve the
same version before sending it
to the White House for Mr.
Trump’s signature. A Senate
vote is expected Friday. “The
speaker has said the House will
take up what the Senate can
produce,” AshLee Strong, a
spokeswoman for Mr. Ryan said
Wednesday.
It wasn’t clear Wednesday
whether the deal would allow
Treasury Officials to take “extraordinary measures” to continue paying the government’s
bills beyond the new Dec. 15
deadline. But a Senate GOP aide
said Wednesday evening that
the deal wouldn’t constrain
Treasury officials’ ability to
manage the debt.
Democrats had said Wednes-
day that their offer was designed in part to maintain their
leverage in other negotiations
over issues including health
care and Mr. Trump’s decision
Tuesday to end after six months
an Obama-era program that
shields undocumented immigrants who entered the U.S. as
children.
Mr. Trump has made no secret of the possibility he would
work with the Democrats. In
March, frustrated that House
Republicans had stumbled in
their initial efforts to pass a
health-care bill, Mr. Trump
threatened to work across party
lines on health legislation before dropping that idea and attacking Mr. Schumer as the
Democrats’ “head clown.”
—Michael C. Bender
and Janet Hook
contributed to this article.
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A5
A6 | Thursday, September 7, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Hurricane Heads Toward Florida
Hurricane Irma walloped
several islands in the northeast Caribbean on Wednesday
while officials in Florida
braced for a historic storm
and pressed residents to follow calls for evacuations.
BY NANCY A. YOUSSEF
ALVIN BAEZ/REUTERS
By Jon Kamp,
Scott Calvert
and Dudley Althaus
The “potentially catastrophic” Category 5 storm,
one of the most powerful ever
recorded over the Atlantic
Ocean, packed maximum-sustained winds of 185 miles an
hour, according to the National Hurricane Center. The
center said it was too soon to
forecast the timing and magnitude of a potential Florida hit,
though recent forecasts indicated almost the entire state,
including Miami, is at risk.
Florida Gov. Rick Scott
called the storm “extremely
dangerous and deadly” and
warned that Irma could hit the
state even harder than Andrew, a Category 5 hurricane
that slammed into the state’s
southern region in 1992. “This
storm has the potential to
devastate our state,” he said.
Authorities also advised
there could be a storm impact
in Georgia and South Carolina,
where Gov. Henry McMaster
declared a state of emergency
Wednesday. North Carolina
Gov. Roy Cooper also declared
a state of emergency for all
100 counties.
The storm’s center made
landfall over the island of Barbuda early Wednesday, the
hurricane center said, and
passed over St. Martin.
French authorities linked at
least two deaths and two serious injuries in French territories to the storm. French President Emmanuel Macron said
damage on the islands was
considerable.
Communication to the island of Barbuda, which has
1,500 residents, was cut off after the storm hit. Gaston
Browne, the prime minister,
Civil defense workers in Fajardo, Puerto Rico, Wednesday as Hurricane Irma slammed across the Caribbean and headed toward Florida
flew over the island by helicopter and reported Wednesday afternoon that 90% of the
buildings were damaged.
“There is widespread damage and destruction in terms
of houses and buildings,” said
Midcie Francis, a spokeswoman for Barbuda’s disasterservices agency. She said there
was one fatality confirmed by
the prime minister and said
there was no indication of
widespread loss of life.
The hurricane’s eye was
skirting just north of Puerto
Rico, home to about 3.4 million people, early Wednesday
evening, according to the hurricane center. Hurricane and
tropical-storm conditions were
forecast to continue spreading
westward over the U.S. territory Wednesday night.
Earlier, Gov. Ricardo Rosselló urged residents to evaluate their situation and go to
shelters if necessary. Over
Twitter late Wednesday, he
said more than 4,200 people
Airlines Slash
Flight Schedules
Airlines are scrubbing
scheduled flights to and from
Florida as Hurricane Irma bears
down on the state.
American Airlines Group
Inc. said Wednesday that it
would wind down operations at
its busy Miami hub by Friday
afternoon. The largest carrier in
the region said it would also
suspend operations at Fort
Lauderdale, Fort Myers, Sarawere in shelters.
In Florida, Mr. Scott asked
the state’s roughly 20 million
residents to stock up on supplies and urged residents to
make evacuation plans. He
said he was working to keep
provisions stocked, citing fuel
shortages in the Florida Keys
and
empty
supermarket
sota and Palm Beach airports
throughout the weekend.
Flights from Europe and
South America that were due
to land in Miami on Friday have
been canceled, American said,
and passengers have been offered waivers to move back
their flights without change
fees or fare-increase penalties.
American controls more than
two-thirds of passenger traffic
at Miami International Airport,
offering about 320 daily flights.
Delta Air Lines Inc., another
big operator to the region, said
it has waivers available cover-
ing 27 cities, including 16 in
Florida. JetBlue Airways Corp.,
which has a big presence in
Fort Lauderdale, has waivers
out for 17 Caribbean airports
and eight in Florida.
As people try to get out of
harm’s way, JetBlue pledged to
offer remaining seats on flights
out of the region for reduced
fares of $99 to $159 through
Sept. 13. A search of other airlines’ websites shows some remaining seats on flights out of
the region this week going for
$1,000 or more.
—Susan Carey
shelves.
On Wednesday afternoon,
Isabel Lopez exited a WalMart near the Miami airport
where she had stocked up on
some final hurricane supplies,
including canned beans, sandwich meat and batteries. But
she said she struck out once
again in her quest to find bot-
tled water.
Miami-Dade County ordered
evacuations of roughly 150,000
residents in certain coastal areas and on barrier islands, and
for all mobile homes.
—Arian Campo-Flores,
Sam Schechner
and Brian Baskin
contributed to this article.
Irma Evacuees Drain Gas Stations’ Pumps
BY ALISON SIDER
Gasoline stations in Florida
are running out of fuel as drivers there scramble to fill their
tanks and get out of town as
Hurricane Irma barrels toward
the state.
Nearly 26% of stations in
the Miami-Fort Lauderdale
area don’t have fuel, according
to GasBuddy, which tracks fuel
supplies and prices. The figure
is similar in the West Palm
Beach-Fort Pierce area. In Fort
Myers-Naples, more than 18%
of stations are dry.
Irma comes on the heels of
Harvey, another powerful hurricane that battered Texas refineries that supply much of
the U.S., including Florida,
with fuel.
“There’s no gas anywhere,”
said Santiago Archiere, a student at Florida International
University in Miami. On Tuesday, he got stuck in a traffic
jam as drivers lined up to refuel. “It was just a line going
down three blocks of people
waiting to get into the gas station because it was the one
INSURE
Continued from Page One
Gov. Rick Scott on Monday declared a state of emergency in
all of the state’s 67 counties.
Proponents say hurricane
deductibles make insurers
more willing to offer policies
in high-risk areas and encourage homeowners to take steps
to prevent storm damage.
But consumer advocates say
hurricane deductibles can be
confusing and prohibitively
expensive for homeowners.
Unlike a typical deductible,
which requires consumers to
pay a flat amount to cover
losses before the insurance
company will pay out for a
claim, these special deductibles
are calculated as a percentage.
Consumers can be required to
pay anywhere from 1% to about
10% of the total insured value
of the building or its contents,
not a percentage of the claim
amount. Insurers will only pay
for damage that exceeds the
deductible amount.
For example, a homeowner
whose house is insured up to
$200,000 with a 5% hurricane
Training
In Navy
Fleet Is
Deficient
Running Dry
Percentage of gas stations that do not have fuel in Florida
by metropolitan area
Miami - Ft. Lauderdale
25.9%
West Palm Beach Ft. Pierce
25.8
Ft. Myers - Naples
18.4
Tampa - St. Petersburg
9.8
Orlando - Daytona
Beach - Melbourne
6.6
Gainesville
5.8
Mobile-Pensacola
Panama City
Jacksonville
Tallahassee Thomasville
4.7
2.6
2.3
1.6
Source: GasBuddy
THE WALL STREET JOURNAL.
station that had gas.”
Nationwide, prices at the
pump are still rising, with the
national average increasing to
a fresh two-year high of
$2.667, up 32.8 cents from a
week ago. In Florida, a gallon
of regular gasoline costs
$2.713, on average—up 32.4
cents from last week’s average,
according to GasBuddy.
Analysts and officials say
there is fuel in Florida, but
there are logistical hurdles
getting it to stations that have
run dry. The state typically
has a seven-day supply on
hand, and shipments are still
deductible would be responsible for the first $10,000 of
hurricane-related damage to
the building.
This type of deductible can
be triggered by hurricanes,
high wind speeds, earthquakes
or other disasters. The triggers vary depending on region
and insurer. Nineteen states
and the District of Columbia
have hurricane deductibles,
according to the Insurance Information Institute.
In 2012, Hurricane Sandy
didn’t trigger hurricane deductibles across the East Coast
because the storm weakened
from a hurricane to a tropical
storm before it made landfall.
Harvey, on the other hand,
arrived on Aug. 25 as a hurricane. The Texas Wind Insurance Association, the insurer of
last resort on the Texas coast,
had received more than 42,000
claims from policyholders as of
late Monday, a spokeswoman
said. A majority of TWIA residential policies have a hurricane deductible of 1% or 2%.
Allstate Corp., one of the
top home insurers in Texas,
has different deductible criteria depending on the policy,
but they were all triggered by
Harvey, a spokesman said.
In Florida, the typical homeowners policy has a 2% hurricane deductible, and the average insured value is $250,000,
according to a spokeswoman
for the state’s Office of Insurance Regulation. That means
the average Florida homeowner needs to pay about
$5,000 to cover the deductible,
which “may be problematic for
some homeowners,” she said.
Some insurers began adding
hurricane deductibles to policies after Hurricane Andrew in
1992, the second-costliest hurricane for insurers in U.S. history
behind Katrina.
“It was a strategy employed
by the national carriers to at
least maintain their presence in
Florida” as many were sharply
cutting back their footprint in
the state, said Kevin McCarty, a
founder of Celtic Global Consulting LLC and a former Florida insurance commissioner. “It
gave insurance companies more
capacity to sell additional policies” in Florida, he said.
Many households in the Caribbean islands in Irma’s path
are uninsured or underinsured
compared with U.S. households, meaning that residents
coming in: Tankers are unloading at ports such as
Tampa, and barges are traveling along the Gulf Intracoastal
Waterway. But there are bottlenecks emerging—trucks are
having to wait in long lines at
fuel racks, waiting for gasoline
to deliver to local stations.
Because of Irma’s unknown
path, panic buying has been
widespread in the state, rather
than confined to a few counties, said James Miller, communications director for the
Florida Retail Federation.
“You basically had all 67
counties with a run,” Mr.
Miller said.
Florida Gov. Rick Scott has
said the state is working to
get more fuel delivered around
the state. But Mr. Scott cautioned all drivers not to take
too much at once.
“We’re moving as much
through the system as fast as
possible,” he said at a news
conference Wednesday. “Be
considerate of neighbors. Take
what you need to evacuate,
don’t take extra.”
That Irma is following Hur-
Damage Done
Costliest U.S. hurricanes
Estimated insured
Hurricane Year loss, in billions*
Katrina
2005
$49.8
Andrew
1992
24.5
Sandy
2012
19.9
Ike
2008
14.0
Wilma
2005
12.5
Charley
2004
9.3
Ivan
2004
8.9
Hugo
1989
7.3
Rita
2005
6.8
Frances
2004
5.7
*All data are in 2016 dollars.
Source: Property Claim Services
via Insurance Information Institute
THE WALL STREET JOURNAL.
could be on the hook for relatively higher recovery costs.
Hurricane activity has been
subdued in Florida over the
past decade, so for many
homeowners Irma could mark
the first time that their hurricane deductibles are triggered.
Yet about one-third of
homeowners in five coastal
states, including Florida and
Texas, are unaware that hurri-
ricane Harvey adds an extra
challenge. Supplies were already tight throughout the
Southeast even before worries
about Irma began to mount.
Florida doesn’t make any of
its own fuel—the state has no
refineries. Instead, gasoline
gets there by tanker and barge
from plants on the Gulf Coast
and abroad, and some is
trucked in from nearby states.
“The state is a peninsula,
but as far as fuel supply is
concerned, it’s an island,” said
Mark Anderle, director of supply and trading at TAC Energy,
a fuel marketer.
Still, some supplies have
been reaching Florida. Fuel
cargoes from New York Harbor
were shipped to ports in Florida last week as Harvey cut off
supplies from Texas, shipping
analysts and traders said.
Genscape Inc., an energy
market data provider, said two
European cargoes have been
diverted to Florida since Harvey hit, something that rarely
happens.
—Amrith Ramkumar
contributed to this article.
cane deductibles exist, according to a 2017 survey by the Insurance Research Council.
About one-fourth of survey respondents in those states said
they didn’t know whether their
home-insurance policies included hurricane deductibles.
“The problem is, a lot of
people end up getting nothing
because of percentage deductibles,” said Amy Bach, executive director of consumer-advocacy organization United
Policyholders. “People tend not
to pay attention to their insurance until it’s really too late.”
Danielle Hoffman of Deltona, Fla., learned that her insurance includes a hurricane
deductible of several thousand
dollars after Hurricane Matthew in 2016 caused some minor damage in her home.
“We were shocked at how
high it was,” said Ms. Hoffman, 31 years old.
Ms. Hoffman said she and
her husband paid out of
pocket for some repairs but
propped up the fence around
their home instead of getting
it fixed. “I guarantee with this
storm coming, it will be the
first thing to go down,” she
said about the fence.
WASHINGTON—The majority of ships operating in the
U.S. Navy’s Seventh Fleet,
where two destroyers have
been involved in fatal collisions
since June, weren’t certified to
conduct basic operations at sea
related to war fighting, according to U.S. Navy records.
As of late June, eight of the
11 cruisers and destroyers in the
Seventh Fleet, and their crew
members, weren’t certified by
the U.S. Navy to conduct “mobility seamanship,” or basic
steering of the ship, according
to Navy records provided to two
House Armed Services subcommittees. The Navy also said
seven of those ships had expired
training certification in the areas of cruise-missile defense
and surface warfare, which test
a crew’s ability to defend a ship
or to conduct attacks.
The USS Fitzgerald collided
with a Philippine-flagged vessel on June 17, killing seven
crew members. The USS John
S. McCain collided with a Liberian-flagged vessel Aug. 21,
killing 10 sailors. Neither the
Fitzgerald nor the McCain was
certified for the majority of
the mission-operation requirements the Navy periodically
evaluates.
The Seventh Fleet’s destroyers and cruisers generally
met certification in other areas, such as maintenance,
communications, navigation,
explosive safely and search
and rescue. It is unclear what
role the lack of proper certification played in the collisions,
and Pentagon investigations
are under way both into the
collisions and into larger questions of naval operations.
But the certification reports
suggest the Navy may have
knowingly sent ships to sea
that weren’t fully certified for
the missions they were conducting, said Bryan Clark, a
senior fellow at the Washington-based Center for Strategic
and Budgetary Assessments.
“This appears to be endemic
of a systemic problem,” Mr.
Clark said. The Seventh Fleet
destroyers and cruisers “may
not have had sufficient practice
to do the difficult transits they
were doing,” given the crowded
waters they operate in.
Adm. Bill Moran, the vice
chief of naval operations, and
Rear Adm. Ronald Boxall, the
Navy’s director of surface war-
Two admirals are
scheduled to testify
on Thursday about
recent collisions.
fare, were scheduled to appear
before two House Armed Services subcommittees Thursday
on the collision of the USS
Fitzgerald and USS John S. McCain. Lawmakers received the
records earlier this week, ahead
of Thursday’s joint hearing.
Also testifying will be John
Pendleton, who has written
extensively about the U.S.
Navy for the Government Accountability Office, including
warning about overworked
sailors and shortened training
schedules.
After a ship has undergone
maintenance, the Navy periodically conducts monthslong
tests of its sailors on their
ships to ensure they can properly maneuver the ship and
conduct military operations.
The Navy has acknowledged
cutting back on certification
procedures in the face of
growing demand, according to
past GAO reports.
The Navy repeatedly has
said increased demand on the
Seventh Fleet has resulted in
cutbacks on training and certifications. That pressure has
only increased in recent
months with each North Korean missile or weapons test,
as the fleet conducts more exercises and patrols with the
same number of ships.
Navy Cmdr. Bill Speaks declined to comment on the certification records but said the
review of naval operations begun after the two fatal collisions would encompass training, professional-development
and operational certifications.
THE WALL STREET JOURNAL.
NY
Thursday, September 7, 2017 | A6A
Building Our
Community Together
It is with heartfelt gratitude that we celebrate the vision of our
benefactors who have committed to enhancing the community’s
health. The extraordinary generosity shown by these individuals
and organizations is transforming Saint Barnabas Medical Center.
LEADERSHIP GIVING COOPERMAN FAMILY PAVILION
CORNERSTONE
Leon and Toby Cooperman Family
Cooperman Family Pavilion
PILLAR
Eric F. and Lore Ross
Eric F. and Lore Ross Lobby
ARCHITECT
The Schonbraun Family
The Schonbraun Family Registration
BUILDER
Canastra and Hammer Families
Canastra and Hammer Rehabilitation Gym
and Visitors Lounge
Community Advocates
Community Advocates Lounge
The Kogan Family
Kogan Family Non-Invasive Diagnostic Testing
The Gebroe Family
Gebroe Family Nurses Station
The Healthcare Foundation of New Jersey
The Healthcare Foundation of New Jersey
Private Room & Isolation Suite
The Kreitchman Family Foundation
The Lilyan and Morton Kreitchman
Hybrid Operating Suite
FRAMER
Helen and Roy G. Beck Family
Helen and Roy G. Beck Family Lobby
Dr. Michael and Jayne Marano
and Family
Barbara Freid Gottesman
Larry and Nancy Pantirer
The Blanche and Irving Laurie Foundation
Michael and Toby Rekoon
New Jersey Perinatal Associates
New Jersey Perinatal Associates Infant
Care Pod
Dr. Gary and Camille Rogal
Anonymous
Donna & Mark Rosen
Family Foundation
Ryan and Samantha Schinman
PATRON
Terri and Michael Goldberg
Terri and Michael Goldberg Visitors Lounge
Lori and Gregg Gottsegen
Imaging Consultants of Essex
The Mauriello Family
Mauriello Family Clinical Touchdown Station
Robert S. Schultz
Wallerstein Foundation for
Geriatric Life Improvement
Arthur and Joanne Weinbach Family
Kathryn Zizza and MaryAnn Zizza
Bobbi and Barry Ostrowsky
Bobbi and Barry Ostrowsky Seating Area
in the Physicians Lounge
Susan and Evan Ratner
PARTNER
Vincent Apruzzese and Apruzzese,
McDermott, Mastro, & Murphy
Dr. John F. and Suzanne Bonamo
Andrea and Anthony Melchiorre
Guy and Judi Collette and Family
Miracle Walk
Miracle Walk Welcome Lobby
Stephanie Fein and Peter Hollander
94 Old Short Hills Road
John F.X. Graham and Family
Livingston, New Jersey
www.rwjbh.org/cooperman
Neonatal Associates at Saint Barnabas
Medical Center
Neonatal Associates Central Nurses Station
Saint Barnabas Medical Center
Anesthesiologists
Saint Barnabas Medical Center
Anesthesiologists Waiting Area
The Rosanne H. Silbermann Foundation
The Rosanne H. Silbermann Foundation
Family Lounge and Sibling Play Area
Dr. Shyan and Annette Sun
Dr. Shyan C. Sun Newborn Intensive
Care Floor
Louis V. Henston
Dr. Fred and Miriam Jacobs and Family
Henni and John Kessler
Jeffrey and Alisa Kigner
Livingston Pathology Associates
A6B | Thursday, September 7, 2017
NY
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THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A7
* * * *
WORLD NEWS
U.S. Pushes North Korean Oil Embargo
Administration’s U.N.
sanctions proposal
also targets assets of
Kim and key officials
White House Steps
Back From Ending
Korea Trade Pact
BY FARNAZ FASSIHI
MIKHAIL METZEL/ZUMA PRESS
UNITED NATIONS—A U.S.
proposal for new United Nations sanctions against North
Korea would clamp an embargo on its oil and textile
trade and slap a full asset
freeze and world-wide travel
ban on leader Kim Jong Un
and key regime members and
institutions, according to a
draft of the proposal.
If adopted, the resolution
would significantly escalate
political and diplomatic pressure on Pyongyang as it continues to defy U.N. resolutions
with its nuclear and ballisticmissile tests.
The U.S. circulated a draft
of the resolution, reviewed by
The Wall Street Journal, to all
15 members of the Security
Council, and diplomats said
they expect a vote on Sept. 11.
Negotiations have expanded
from talks between the U.S.
and China to all members of
the council, diplomats said.
“This is an ambitious and
hard-hitting resolution,” said a
Security Council diplomat.
“We will be open to negotiations but there must be a
strong resolution.”
The new sanctions resolution was designed to cripple
the heart of the regime, from
Mr. Kim to the military and
key ministries, in an effort to
use diplomacy to halt the
country’s accelerating nuclearweapons program.
Following North Korea’s sixth
and most powerful nuclear test
Sunday, the Trump administration denounced Pyongyang and
WASHINGTON—The
Trump administration told top
lawmakers that it has put on
the back burner discussion of
terminating a free-trade
agreement with South Korea,
according to people familiar
with the matter, after intense resistance from Capitol
Hill and business groups.
White House officials told
some senior members of
Congress that a plan to end
the five-year-old bilateral
pact, known as Korus, was no
longer an immediate priority.
The officials didn’t say
the termination idea had
been scrapped permanently,
only that it was no longer being considered as an imminent action, according to congressional aides.
A White House spokesman didn’t immediately respond to requests to comment.
—Jacob M. Schlesinger
Russian President Vladimir Putin, left, and South Korean President Moon Jae-in attended an exhibition on Russky Island on Wednesday.
pledged to draw up new sanctions to further isolate the regime. Russia and China, by contrast, have pushed for direct
talks with North Korea.
The resolution faces hurdles in winning the backing of
China and Russia. Both vetoholding countries are allies of
North Korea and have said
they don’t favor sanctions that
would cripple the economy to
the brink of collapse, or contribute to the suffering of civilians. Russian President
Vladimir Putin said Wednesday that cutting off oil exports
to North Korea would violate
humanitarian norms.
In a phone call with President Donald Trump on
Wednesday, Chinese President
Xi Jinping said China was
working “unswervingly” to denuclearize the Korean peninsula, according to state broadcaster
China
Central
Television. Mr. Xi said that a
peaceful resolution to the
North Korean nuclear issue
could only be solved through
dialogue, CCTV reported.
In a meeting with South Korean President Moon Jae-in in
the Pacific port of Vladivostok,
Mr. Putin batted aside Seoul’s
demand that countries cut off
oil supplies to the regime.
“We are worried that cutting off oil exports will inflict
damage on North Korea’s hospitals and on ordinary people,”
Mr. Putin said, according to a
readout from South Korea’s
presidential office.
Under the resolution, member states and their citizens
and vessels would be prohibited from exporting to North
Korea all crude oil, refined petroleum products and liquefied
natural gas.
North Korea would also be
banned from selling or trans-
China Tests for Nuclear-Blast Leaks
BY JEREMY PAGE
BEIJING—China is amping
up monitoring for signs of radioactive fallout from North
Korea’s latest nuclear test, concerned that contamination
could provoke a public outcry
and force Beijing to harden its
approach to Pyongyang, diplomats and analysts say.
Beijing put an extensive radiation-monitoring network on
emergency level of operations
Sunday, after sensors detected
a 6.3-magnitude tremor from
North Korea’s sixth and largest
nuclear test.
Minutes later, they registered a second, smaller tremor,
possibly caused by a structural
collapse. Nuclear and seismological experts said that underground atomic blasts can cause
tunnels to collapse or terrain to
shift, potentially allowing radiation to vent into the atmosphere.
Chinese government agencies said no radiation has been
detected thus far but they will
continue to test air, water and
soil samples in a network of radiation-monitoring stations
that has steadily expanded
since 2013 and is due to grow
by at least two more stations in
the next few months.
The slightest risk of a leak is
of huge concern, with more
than 100 million people living
in China’s three northeastern
provinces bordering or near
North Korea. The Punggye-ri
test site, where the blast took
place, is less than 50 miles
from China’s border. Nuclear
blasts produce radioactive
forms of elements such as iodine, exposure to which can
cause cancer in humans—or
even death in extreme cases.
Sunday’s test shook buildings in Chinese cities near the
border and could be felt hundreds of miles away. Some people ran into the streets and
posted videos of shaking chandeliers in their apartments.
Others have since taken to social media to express alarm.
A key concern for Chinese
leaders, according to diplomats
and analysts, is that any environmental contamination could
quickly turn into a political
problem, with people demanding that Beijing hold Pyongyang accountable as its biggest
investor, trade partner and aid
donor.
“If it turns out that there is
fallout, and some leaking that
threatens northeastern China,
it will likely change China’s
stance,” said Zhu Feng, an international security expert at
China’s Nanjing University. “It
would need to tell people that
it will keep [North Korea] un-
der check.”
Chinese authoritarian leaders are sensitive to public opinion and wary of anything that
could provoke protests, dent
the image of the Communist
Party, or otherwise diminish
their power. Such sensitivities
are especially high with China’s
leadership heading into a key
Beijing is worried any
radioactive fallout
might spark a political
backlash in China.
political meeting next month to
shuffle top portfolios—and
with the government under
pressure from the U.S. to bring
North Korea to heel.
China has never publicly reported contamination from
North Korean nuclear testing.
In private Chinese officials
have expressed increasing concern about the environmental
impact, according to diplomats
and analysts.
After a meeting in 2013,
then-South Korean President
Park Geun-hye said that Chinese Premier Li Keqiang told
her that Pyongyang’s test that
year contaminated the Yalu
River that forms the border
with China, said a South Korean presidential representative. China’s foreign and environment ministries didn’t
respond to requests to comment.
North Korea’s state-controlled news agency said on
Sunday that the test didn’t result in leaking of radioactive
materials and had no “adverse
impact on the surrounding ecological environment.”
Daily notices from China’s
nuclear safety and environmental agencies said no traces of
radiation have been detected.
Japanese nuclear regulators
also said on Tuesday that radiation-sensing aircraft found no
abnormal readings over the Sea
of Japan, just east of the Korean Peninsula.
Pyongyang performs its nuclear tests in solid rock beneath a steep mountain. The
depth of the blast would make
a large radiation leak unlikely
even if there were a cave-in,
said Steven Gibbons, a seismologist at Norwegian geological
monitoring agency Norsar who
specializes in nuclear testing.
It will likely take days or
weeks before radiation from
this test is detected, if at all, he
said, noting that radioactivity
was detected only after two
previous North Korean nuclear
Seven key government institutions that help prop up
the North Korean regime and
its control of the public are
blacklisted in the resolution.
They include the Central Military Commission, the army
and propaganda and state-media ministries. The list of
sanctioned entities would also
be expanded to Air Koryo,
North Korea’s national airline.
North Korea’s mission to the
U.N. and Air Koryo didn’t respond to requests to comments.
—Jonathan Cheng
and Nathan Hodge
contributed to this article.
ferring textiles, including fabrics and apparel products and
member states prohibited
from procuring textiles originating from North Korea.
Individuals targeted under
the proposed asset and travel
freeze include: Hwang Pyong
So, vice chairman of the State
Affairs Commission; Kim Ki
Nam, director of the Workers’
Party of Korea Propaganda
and Agitation Department,
which controls all media; his
Vice Director Kim Yo Jong;
and Pak Yong Sik, a member of
the Workers’ Party of Korea
Central Military Commission.
Fallout Fears
China has added several radiation-monitoring stations since 2013
amid rising fears of contamination from North Korea's nucleartesting program.
Radiation-monitoring stations
New stations since 2013
CHINA
RUSSIA
100 miles
100 km
NORTH
KOREA
Beijing
Punggye-ri
nuclear
test site
Pyongyang
SOUTH
KOREA
THE WALL STREET JOURNAL.
Source: China’s Ministry of Environment
ety level.
A resident of Yongji, a city
200 miles from the border,
wrote on his Sina Weibo microblog that his family ran down
from their 10th floor apartment
when they felt the tremor. Such
fears, he said, could easily turn
into outright panic.
tests, in 2006 and 2013.
Residents of border areas
have grown accustomed to tensions with North Korea, and
periodic nuclear or missile
tests. But Sunday’s blast, which
was estimated to be as much as
10 times as powerful as the last
test a year ago, raised the anxi-
U.S. Apologizes for
Indonesians Protest Violence in Myanmar
Leaflets in Afghanistan
KABUL—The U.S. military in
Afghanistan apologized for
dropping leaflets in a northern
province of the country that it
said mistakenly contained an
image deeply insulting to Muslims.
Maj. Gen. James Linder,
commander of the Special Operations Joint Task Force in
Afghanistan, didn’t describe
the derogatory image on
Wednesday, saying in a statement only that it was “highly
offensive to both Muslims and
the religion of Islam.”
But photographs of the leaflet, airdropped by U.S. forces in
Parwan province on Tuesday,
quickly circulated on social-media platforms here. While the
Afghan government had no immediate comment, the Taliban—the Islamist militant
group that the Afghan govern-
ment, the U.S. and their allies
have been fighting since 2001—
quickly seized on it. “American
invaders are enemies of religion,” Taliban spokesman Zabiullah Mujahid said on Twitter.
The leaflet shows a lion,
symbolizing the U.S.-led military coalition in Afghanistan,
chasing a dog whose flank is
emblazoned with the Taliban
flag. The standard features the
Islamic text known as the Shahada, a declaration of the oneness of God and the acceptance
of Muhammad as his prophet.
The portrayal of Islamic religious scripture on a dog, an
animal many Muslims consider
haram, or unclean, is likely to
be seen as highly offensive.
The leaflet dropped Tuesday urged readers to “take
back their freedom from the
terrorist dogs.”
Gen. Linder described the
error as inexcusable, saying a
review would be conducted.
JAKARTA,
Indonesia—
Thousands of Indonesians protested on Wednesday against a
military campaign in Myanmar
that has forced the exodus of
about 125,000 Rohingya Muslims, fueling a global wave of
Muslim anger at Myanmar and
its Nobel Prize-winning leader,
Aung San Suu Kyi.
Protests in countries from
Indonesia, Turkey and elsewhere are raising pressure on
governments to intervene to
stop the violence in Myanmar,
where members of a long-persecuted ethnic Muslim minority have been fleeing to neighboring Bangladesh in the wake
of village-burning clearances
and fighting since Aug. 25
that have left hundreds dead.
In Jakarta, capital of the
world’s largest Muslim-majority country, police said around
5,000 people joined the rally.
Protesters called for the clo-
DITA ALANGKARA/ASSOCIATED PRESS
BY HABIB KHAN TOTAKHIL
AND CRAIG NELSON
BY BEN OTTO
AND ANITA RACHMAN
Demonstrators at Myanmar’s embassy in Jakarta on Wednesday.
sure of Myanmar’s embassy
and an end to the violence.
The politically influential,
hard-line Islamic Defenders
Front said it was prepared to
declare an “open war” on
Myanmar. “If the Indonesian
and Myanmar governments
cannot stop the slaughtering
of Rohingya Muslims…we will
send jihadists to defend our
brothers,” spokesman Slamet
Maarif told reporters.
Security analysts largely dismissed the possibility of a mass
Indonesian jihad in Myanmar;
the two Southeast Asian countries share no land border, for
example. But the government
was quick to ban a threatened
protest by the group at Borobudur, an ancient Buddhist temple
complex in central Java, underscoring fears of Myanmar’s sectarian rift spilling over into the
country.
Myanmar has come under
widespread criticism for its
response to attacks by ethnic
Rohingya insurgents against
security forces in northern Rakhine state, a border region
where many members of the
stateless Muslim minority live.
Around 400 mostly insurgents
have been killed since Aug. 25,
Myanmar’s military says. The
United Nations estimates that
nearly 125,000 Rohingya have
fled to Bangladesh.
Myanmar considers the estimated one million Rohingya
people within its borders to be
illegal immigrants from Bangladesh and subjects them to
travel restrictions and other
curbs.
—Myo Myo
in Yangon, Myanmar,
contributed to this article.
A8 | Thursday, September 7, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
EU Court Orders States to Accept Refugees
Divisive Policy
Few EU countries are living up to their commitments on relocating
asylum seekers who arrived in Italy and Greece.
Legal commitment
Poland
Hungary
Czech Republic
Austria
Slovakia
Bulgaria
Croatia
Spain
Romania
France
Belgium
Germany
Slovenia
Netherlands
Cyprus
Estonia
Portugal
Sweden
Lithuania
Latvia
Luxembourg
Ireland
Finland
Malta
Percentage met
6,182
1,294
2,691
1,953
902
1,302
968
9,323
4,180
19,714
3,812
27,536
567
5,947
320
329
2,951
3,766
671
481
557
600
2,078
131
The European Union’s top
court ruled that Central European states have no legal
grounds to reject a refugee-relocation program, backing the
bloc on a policy that has roiled
politics across the region since
By Valentina Pop in
Brussels and Drew
Hinshaw in Warsaw
0%
20%
40%
60%
80%
100%
Note: EU members Denmark and the U.K. aren't parties to the resettlement agreement
Source: European Commission
THE WALL STREET JOURNAL.
a major influx of people two
years ago.
Wednesday’s ruling reopened deep disagreements
about immigration policy amid
already simmering tensions
over the rule of law and the
extent to which Brussels
should have a say in enforcing
controversial policies.
The Luxembourg-based European Court of Justice ruled
that the EU’s mandatory plan
to relocate refugees among the
bloc’s members, hammered out
in September 2015 as hundreds of thousands of Syrians
entered the continent via Turkey and Greece, was legal.
It dismissed arguments
brought by Hungary and Slo-
vakia, which had voted against
the program and refused to
take part in it. Poland and the
Czech Republic—where nationalist, anti-immigration politicians are in power—have also
refused to participate.
The original plaintiffs have
meanwhile drifted apart in
their approaches.
On Wednesday, Slovakia’s
foreign minister said his government “fully respects the
verdict.” The European Commission, the EU’s executive
arm, said Slovakia was preparing to take in a first batch of
refugees from Italy, which
along with Greece has borne
the brunt of the arrivals. Under
the EU plan, Slovakia is being
asked to resettle 902 people.
“We will actively work to
express solidarity with countries most affected by the
problem of migration,” Foreign
Minister Miroslav Lajcak said,
adding the caveat that Slovakia would try to find a solution
“other than accepting migrants
who have no desire or intention to remain in our country.”
Hungary, which has refused
to take in the 1,294 refugees allotted by the plan, had a much
sharper reaction to the ruling.
Foreign Minister Peter Szijjarto called the verdict “outrageous and irresponsible.”
“Our first goal in connection with the future of the EU
is to continue to guarantee the
security of Hungarians,” he
said. “Politics has raped Euro-
The European Court
of Justice dismissed
Hungary’s and
Slovakia’s arguments.
pean laws and values.”
Asked about the ruling, Poland’s Prime Minister Beata
Szydlo said she had expected
the outcome and her government’s
position
hadn’t
changed. The country’s foreign
ministry said the relocation
program “doesn’t solve the
EU’s migration problem.”
EU migration commissioner
Dimitris Avramopoulos gave
Hungary, Poland and the Czech
Republic a few weeks to
change course or be taken to
court to force compliance with
the EU plan. “Member states
are obliged, legally and politically, I would say even morally,
to do their part,” Mr. Avramopoulos said.
For two years, the migrantresettlement program has
given nationalist leaders on
the bloc’s eastern edge a provocative issue to rally around.
Hungarian Prime Minister
Viktor Orban fenced off his
country’s southern border and
contracted guards called “border hunters.” Billboards in his
capital bear government messages, including, “Did you
know that Brussels wants to
settle a city’s worth of illegal
immigrants in Hungary?”
Other political leaders have
copied Mr. Orban’s playbook.
Poland’s Law and Justice party
and Slovakia’s Direction-Social
Democracy have both cemented power by campaigning
to keep out refugees, saying
they could be terrorists.
BY ANDREA THOMAS
BERLIN—Germany’s rapidly
worsening relations with Turkey could scramble long-established voting patterns among
the roughly one million German voters of Turkish origin,
throwing a wild card in an
election polls suggest is nearly
certain to deliver a fourth term
to Chancellor Angela Merkel.
In a country of 81 million
with some 61.5 million registered voters, even a sharp shift
among these voters in the Sept.
24 vote is unlikely to cost Ms.
Merkel her victory, pollsters say,
but it could be bad news for
some of her smaller rivals and
potential coalition partners.
Turkish President Recep
Tayyip Erdogan caused an uproar in Germany last month
when he called on German
Turks not to vote for Ms.
Merkel’s Christian Democratic
Union, the center-left Social
Democratic Party, and the
smaller Green party, calling
them enemies of Turkey.
Ms. Merkel on Friday called
Mr. Erdogan’s attempts to influence the German election unacceptable. “The people in our
country decide for themselves,”
she said. SPD leaders have
lashed out at Mr. Erdogan, with
Foreign Minister Sigmar Gabriel
and Justice Minister Heiko Maas
calling his comments “a threat
to Germany’s democratic culture” in a joint column last
month in Spiegel magazine.
But Mr. Erdogan’s call likely
struck a chord in parts of a
diaspora increasingly dissatisfied with its political treatment.
“German Turks no longer trust
German parties as they used to
because they don’t get treated
as equals,” said Umit Karakas,
co-head of Data4U opinion-research institute.
For Remzi Aru, the Turkish
president’s boycott appeal was
great news. The Berlin-based,
Turkish-born
businessman
founded the Alliance of German Democrats, which targets
immigrant voters. Polls show
the party is unlikely to reach
the 5% threshold required to
enter the German parliament,
but it could still inflict some
pain on its competitors, espe-
JAN WOITAS/ASSOCIATED PRESS
Germany’s Turks Face Quandary in Coming Election
Turkey’s leader urged a boycott
of parties including Ms. Merkel’s.
cially the Social Democrats,
Ms. Merkel’s main rivals.
A 2015 poll of 1,003 German
voters of Turkish origin by
market-research firm BIK Aschpurwis Behrens GmbH
showed 69.8% considered the
Social Democrats their favorite
party. But a survey of 1,000
such voters commissioned
early this year by the Union of
European Turkish Democrats—
a group linked to Mr. Erdogan’s
AKP party—showed a strong
shift. it found that less than
half of the 46% of responders
who said they voted for the
SPD in the 2013 elections intended to do so again this year.
“We don’t feel at home with
any party right now,” said Zafer
Sirakaya, president of the UETD.
“Nobody has any chance to become active in German politics
unless they’re critical of Turkey
and critical of Erdogan.”
The two countries’ ties
started fraying last year, after
Germany’s parliament adopted
a resolution branding the killing of more than a million Armenians by Ottoman Turkey in
1915 and 1916 as genocide,
sparking protests in Ankara.
Since then the relationship
between the two North Atlantic
Treaty Organization allies has
gone from bad to worse. The low
point came in July, when Turkish
security officers arrested a German human-rights activist in Istanbul, prompting Berlin to issue
a travel advisory for the country
and threaten aid cuts. On Friday,
the German Foreign Ministry
said Turkey had arrested two
more German citizens. One has
since been released.
Cassini’s Last Dance With Saturn
A look at the probe's key discoveries of the planet and its rings and moons
NASA's Cassini spacecraft makes its final tour of Saturn this month. Cassini was
launched in 1997 to seek evidence of water and capture the first close-up views of the
ringed planet. It reached Saturn in 2004 and has been probing the mysteries of the
planet ever since.
The interplanetary spacecraft is one of the largest, heaviest and most complex
ever built. It was composed of two piggybacked spacecraft: NASA’s Cassini orbiter
and the European Space Agency's Huygens probe, which landed on Titan in 2005.
Loaded with a dozen powerful instruments and cameras, it has been taking measurements and detailed images in a variety of conditions and wavelengths.
Saturn is unique among the planets, for no other world has such spectacular rings.
The swirling dynamics of its immense icy rings mirror the forces at work when our solar
system and stars likely formed. Surrounded by 53 confirmed and nine provisional
moons, Saturn is home to some of the most fascinating landscapes in our solar system.
—Robert Lee Hotz and Yaryna Serkez
CASSINI’S GRAND FINALE
In late August, NASA's Cassini spacecraft entered its final
mission phase. This Grand Finale, as NASA mission managers
call it, ends Sept. 15 when the spacecraft is programmed to
plunge into the atmosphere of Saturn. Mission managers
ordered its destruction to avoid contaminating any of
Saturn’s large moons that might be hospitable to life.
JET STREAM
Saturn’s polar regions surprised scientists. They found a
long-lived hexagonal-shaped jet stream in the north and
hurricane-like storms at both poles. In 2013, the entire
interior of the hexagon was covered in yellowish smog,
likely caused when the sun's ultraviolet light triggered
photochemical aerosols.
ENCELADUS
Enceladus—310 miles across—is the brightest moon in
the solar system. Cassini revealed that Enceladus hides
a global ocean of salty water beneath its crust, with
geysers of volatile gases, water vapor, carbon dioxide
and carbon monoxide, as well as organic materials.
Scientists consider Enceladus a possible habitat for life.
GIANT STORM
RINGS
An immense hurricane swirls inside the
hexagon around Saturn's north pole. Its eye
is 1,250 miles across, with winds four times
as fast as hurricane-force winds on Earth.
This Saturnian storm has likely raged for years.
TITAN
IAPETUS
Titan, one of Saturn’s moons, is the only
place in the solar system other than Earth
that we know has stable liquid on its surface.
The Huygens probe’s 2-hour and 27-minute
descent on Jan. 14, 2005, revealed Titan to
be remarkably like Earth before life evolved.
Photos: JPL-Caltech/NASA (Cassini); Cornell/ASI/JPL-Caltech/NASA (Titan); Space Science Institute, JPL-Caltech/NASA
The spacecraft discovered
propeller-like formations and
witnessed the possible birth of
a new moon. The objects in
Saturn's rings range in size from
dust-sized particles to moonlets
more than 18 miles wide.
Astronomers have long wondered
why Saturn's third-largest moon
has one side darker than the
other. The Cassini spacecraft
showed that dust in Iapetus's
orbital path is swept up and lands
on the leading face of the moon.
Erik Brynildsen/THE WALL STREET JOURNAL.
On its last day, Cassini
is expected to continue
transmitting until the
force of Saturn’s
atmosphere overpowers
the spacecraft’s thrusters
and it can no longer point
its antennas precisely
enough to maintain
contact with Earth.
All told, more than
5,000 people worked
on the mission. It may
take a decade or more
for scientists to
analyze all of the
data it collected.
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A9
WORLD WATCH
Pope Arrives on Tour
To Encourage Peace
Pope Francis arrived in Bogotá on Wednesday to help Colombians mend relations after a
long guerrilla conflict and show
support for a peace process that
led the FARC rebel group to disarm and transform itself into a
political party.
The pontiff arrived late in the
afternoon on a flight from Rome
and was greeted by President
Juan Manuel Santos, first lady
María Rodríguez and the apostolic nuncio to Colombia, Ettore
Balestrero, at the air base adjacent to Bogotá’s international
airport
Pope Francis is scheduled to
pray for the victims of violence
in the capital on Thursday.
—Juan Forero
and Kejal Vyas
SPAIN
an opposition-held town that
killed at least 83 people and
called it a war crime.
The U.S. and other Western
nations immediately blamed
President Bashar al-Assad’s regime for the April 4 attack on
the town of Khan Sheikhoun in
rebel-held Idlib province. But this
was the first time the U.N.
echoed the allegation.
“The chemical bomb released
a cloud which spread over a distance between 300 and 600
meters from the impact point
and killed at least 83 persons, including 28 children and 23
women,” the U.N. said.
The attack was carried out by
a Sukhoi 22 warplane, an aircraft
that only the regime operates. It
conducted four airstrikes on
Khan Sheikhoun, dropping three
conventional bombs and one
chemical bomb, according to the
report by the U.N.’s independent
Commission of Inquiry on Syria.
—Raja Abdulrahim
NOUSHAD THEKKAYIL/EUROPEAN PRESSPHOTO AGENCY
COLOMBIA
WORLD NEWS
CAMBODIA
Court Asked to Block
Vote on Catalan Split Hun Sen Vows to Rule
For 10 More Years
SYRIA
U.N. Blames Regime
For April Sarin Attack
A United Nations report
blamed the government in Damascus for a sarin gas attack on
Speaking to thousands of garment-factory workers on the outskirts of Phnom Penh, Prime Minister Hun Sen said he had decided
to run for another two terms.
“I have decided to continue my
job for another 10 years,” the 65year-old said.
In power for 32 years, Mr. Hun
Sen is the world’s longest-serving
prime minister and among its longest-serving leaders. In 2007, he
said he wanted to retire at 90 but
backtracked in 2015.
—Associated Press
TANG CHHIN SOTHY/AGENCE FRANCE-PRESSE/GETTY IMAGES
The government asked a top
court to block the Catalan regional government’s attempt to
hold a referendum on independence, the latest clash in what
has become Spain’s most pressing political issue.
Lawmakers in Catalonia’s regional parliament were debating
proposed legislation to convene
a referendum on independence
when Spain’s deputy prime minister said in televised remarks
that the government wouldn’t
allow measures that courts have
previously ruled violate the
country’s constitution.
“The government has asked
the Constitutional Court to declare null and void the adopted
agreements,” Deputy Prime Minister Soraya Sáenz de Santamaría said.
“We are defending the rule of
law in Spain and democracy in
Catalonia,” she added.
—Jeannette Neumann
Prime Minister Hun Sen poses
with workers in Phnom Penh.
Container ship MSC São Paulo docks at Qatar’s Hamad Port in the Persian Gulf. The terminal can accommodate the biggest vessels.
Qatar Opens Big Seaport
BY NICOLAS PARASIE
DUBAI—Qatar, faced with
dwindling supplies of essentials such as food, officially
opened a major seaport, which
will help the Gulf state secure
imports after its Arab neighbors cut off trade routes in an
intensifying diplomatic standoff.
The move is Qatar’s latest
riposte to a blockade by its
Arab neighbors and another
sign of how a monthslong
diplomatic spat is starting to
alter the region’s trade flows
in significant ways.
Saudi Arabia, the United
Arab Emirates, Bahrain and
Egypt in June severed diplomatic ties and closed their air
routes and land and sea borders with Qatar to protest its
alleged support for regional
extremist organizations and
terrorist groups.
That month, imports fell
nearly 40% year to year, according to government data.
They recovered slightly in
The Face
of Change
July but were still down
about 35% on the year.
To cope with the transportation ban, Qatar has rapidly
established alternative trade
routes. It has used nearby
Oman’s ports and Iranian airspace while turning to Iran
and Turkey for food imports.
On Tuesday, Qatar’s ruler,
Sheikh Tamim bin Hamad AlThani, inaugurated a $7.4 billion seaport that will allow
Doha to further circumvent
the blockade.
As the dispute drags out,
Doha has been digging in its
heels. Late last month, Qatar
said it is sending back its ambassador to Iran, a move that
irked its main regional rival,
Saudi Arabia. Also in August,
Saudi royals met with a littleknown Qatari royal to discuss
easing access for Qatari citizens in the annual hajj pilgrimage, which some commentators saw as an attempt
to set in motion regime
change.
“We have proven beyond
any doubt how much we are
flexible but steadfast when it
comes to facing challenges,”
Transport Minister Jassim
bin Saif al-Sulaiti said.
Hamad Port has helped secure Qatar’s vital supplies, he
added.
“After just one year of operations, 27% of trade in the
Middle East now passes
Gulf state partially
sidesteps blockade
with a new gateway
for essential supplies.
through Hamad Port,” he
added. “We have established
direct shipping lines with major ports in several countries,
including China, India and
Pakistan, and plans are in
place to open two new direct
lines to Malaysia and Taiwan.”
Hamad Port can receive the
world’s largest vessels, allowing container ships to go directly to Qatar, bypassing the
U.A.E. where they traditionally stopped to refuel and to
unload cargo. The port has
three terminals with a combined annual capacity of 7.5
million containers.
Work on Hamad Port,
named after the current emir’s
father, began about a decade
ago as part of efforts to diversify the economy beyond energy. It became fully operational late last year but a
Qatari official said the port
was never used to full capacity in the first months because
of existing agreements between Doha and the U.A.E.’s
Jebel Ali port through which
its largest container ships
went.
But after ties between the
two countries were cut, those
restrictions on Hamad Port
were lifted and the port is using more of its capacity than
initially planned for, he said.
Menisha McCallum
Accelerated Development
Program Associate
Nashville, TN
Understanding the issues impacting healthcare today, while developing insights for the future.
That’s Menisha’s focus. It’s the kind of thinking that ensures our customers get to better – faster.
And the kind of passion that can make a positive impact on the world. It’s just one way our
people are helping to accelerate the transformation to a value-based healthcare system.
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©2017 Change Healthcare Operations, LLC. All rights reserved.
A10 | Thursday, September 7, 2017
* *
THE WALL STREET JOURNAL.
IN DEPTH
Continued from Page One
tists indicates it will only become harder to contain Pyongyang’s nuclear ambitions.
“We should be very concerned about North Korean researchers abroad, particularly in
China,” said Katsuhisa Furukawa, a member from 2011-2016
of the U.N. panel of experts
monitoring sanctions enforcement on North Korea.
Among those scientists is
Kim Kyong Sol, who was still at
China’s elite Harbin Institute of
Technology more than a year after the U.N. introduced its sanctions, doing a Ph.D. in mechatronics—a blend of mechanical
engineering, electronics and
programming—according to
university staff. In March this
year, he published a paper in
China co-written by a senior engineer in Beijing’s military-run
space program.
After reviewing Mr. Kim’s paper at the Journal’s request, Mr.
Furukawa concluded it fell into
a category banned by U.N. sanctions. Foreign-educated North
Koreans’ work in multiple disciplines, said Mr. Furukawa, now
an independent analyst, has
“surely contributed to the accumulation of scientific know-how
and information relevant to its
weapons program.”
North Korea’s technological
advances go beyond nuclear science. Any research or contacts
abroad that could help North
Korea launch objects into space
is of concern to the U.S.
Pyongyang has launched
Earth-observation satellites,
which can be used for reconnaissance and targeting. It has
also test-fired missiles from a
submarine and said it could conduct an electromagnetic-pulse
attack, designed to cripple electric grids by detonating a nuclear device on a satellite.
The technology Mr. Kim studied, called MR damping, can be
used to stabilize spacecraft and
absorb shock in missile-launch
systems, including in submarines, and to reduce vibration in
cars, buildings and helicopters,
U.S. experts in the field said.
Mr. Kim returned home in
June, university staff said. He
didn’t respond to emails. China’s
foreign ministry said Beijing
was “strictly implementing” all
U.N. resolutions on North Korea.
It didn’t respond to questions
about Mr. Kim, nor did Harbin
Institute of Technology.
The concern among U.S. officials is that Pyongyang exploited
TAO ZHANG/NURPHOTO/ZUMA PRESS
SCIENCE
a lack of strict education sanctions before the 2016 U.N. ban to
dispatch scientists and bring
back “dual use” expertise—with
civilian and military applications—and could continue to
benefit from any lax enforcement of the ban.
Some of those officials said
they fear that even with strict
sanctions enforcement, Pyongyang may already have sufficient indigenous know-how for
its nuclear goals. There is evidence North Korea produces its
own rocket engines, the Journal
reported in August, citing a U.S.
intelligence official, contradicting a recent think-tank report
suggesting its engines are from
Ukraine or Russia.
Kim Jong Un made a point of
bragging that his claimed hydrogen bomb was indigenous: “All
components of the H-bomb
were homemade and all the processes ranging from the production of weapons-grade nuclear
materials to precision processing of components and their assembling,” the nation’s official
Korean Central News Agency
quoted him as saying.
China’s Harbin Institute of Technology, here during an aerospace-day celebration in 2016, has hosted North Korean graduate students.
U.N. sanctions
Following North Korea’s second nuclear-bomb test in 2009,
the U.N. in a package of sanctions called on countries to
“prevent specialized teaching or
training” within their territories
or by their nationals that could
help Pyongyang’s nuclear and
missile development.
The U.N. imposed the 2016
ban on teaching specific subjects in response to a fourth nuclear test in January of that year
and broadened it to encompass
disciplines such as advanced engineering and materials science
after another test last September.
In a report this February, U.N.
experts said they found several
North Koreans studying physics
in Italy and four studying material science, engineering and
electronic communications in
Romania last year after the ban.
The report said all were redirected to permitted subjects.
The institutions didn’t respond
to requests for comment.
In 2016, U.N. experts said two
North Koreans were training
that year before the ban at an
Indian space technology center
where 32 others had attended
since 1996, including one who
recently headed Pyongyang’s
satellite control center. The Indian center said it no longer accepts North Koreans.
China in recent years has accounted for the bulk of North
Advanced Studies
Hundreds of North Korean scientists have studied abroad or collaborated with foreign scholars.
in recent years, particularly in China, some in fields subject to 2016 U.N. sanctions.
North Korean postgraduates in China, 2006-2015
With Chinese government scholarship
1,000
Research fields of North Korean academics in
the Web of Science Core Collection*, 2011-2016
Materials science (23)**
Without Chinese government scholarship
Mathematics, applied (20)
Mathematics (20)
800
Optics (19)
Physics applied (13)**
600
Engineering, electrical/electronic (13)**
Metallurgy/metallurgical engineering (11)**
400
Physics, multidisciplinary (10)**
200
Mathematics applications (9)
Geology (9)
0
2006 ’07
Other 75 fields (174)
’08 ’09 2010 ’11
’12 ’13
’14
’15
*The Web of Science Core Collection is a database of information from more than 18,000 major academic journals **All or partly banned by the U.N.
for training or teaching to North Korean nationals
Source: Ministry of Education of China (North Korean postgraduate numbers ); Source: Geum Hee Jeong and Sun Huh; Hallym University (research
fields);U.N. Security Council Resolutions (U.N. banned subjects)
THE WALL STREET JOURNAL.
Korean scientists abroad, the
Journal found in a review of official figures and data from universities in countries where the
most North Koreans typically
have studied. In China, 1,086
North Korean postgraduates
studied in 2015, the last year for
which official data are available,
according to a Chinese Ministry
of Education publication, up
from 354 in 2009. The publication doesn’t show which schools
they attended or what they
studied. The ministry didn’t respond to requests for comment.
China accounted for 60% of
research papers by North Koreans in foreign journals from
2011 through 2016, mostly in
physics, engineering, math, metallurgy and materials science, a
study of academic databases by
researchers from South Korea’s
Hallym University found.
Papers published by North
Koreans in China since the 2016
U.N. sanctions span civilian
fields such as medicine and mining and also fields now prohibited, including metallic foams
that protect against radiation.
Sending more scientists
Kim Kyong Sol’s expertise is in
MR damping, which experts say
can reduce vibration in cars but
also absorb shock in missilelaunch systems. How the North
Korean scientist planned to use
what he studied at Harbin Institute of Technology, or HIT, isn’t
clear.
“Could it be turned into military applications? Possibly,” said
Mehdi Ahmadian, a Virginia Tech
professor who said he had done
Kim Kyong Sol’s entry in a registration book at his former
similar research on MR damping
accommodation block at Harbin Institute of Technology.
in space structures, which could
include satellites, antennas or mir- tions shortly before defending his
cooperative agreement of the
Ph.D. thesis. “I tried to comfort
rors.
type several Chinese universities
him a little,” he said.
Footnotes in the paper Mr.
have signed since 2010 with
He said Mr. Kim didn’t have
Kim published show funding came
North Korean universities, includaccess to secret Chinese defense
from a project led by his Chinese
ing two that U.N. experts have retechnology but said his former
supervisor, Chen Zhaobo, on hyported provide personnel and
student’s work, with further devel- technology for Pyongyang’s nupersonic vehicles, which can fly at
more than 3,800 mph and are be- opment, had potential civilian and
clear-weapons program. They are
ing developed by China, Russia
military uses, including in space.
Kim Il Sung University and Kim
and the U.S. to deliver nuclear or
He and two other professors who Chaek University of Technology,
conventional weapons.
worked with Mr. Kim said they
Mr. Kim’s alma mater.
Prof. Chen said that, after four learned of the 2016 U.N. sanctions
David Albright, a former U.N.
years in Harbin on a Chinese govfrom students and colleagues only weapons inspector and expert in
ernment scholarship, Mr. Kim rearound May or June of this year.
nuclear proliferation, said it is comturned home because of the sancMr. Kim arrived as part of a
mon among nations seeking to
develop weapons of mass destruction to seek knowledge abroad.
China’s engineering schools and
training programs, he said, offer
“opportunities to mingle with people who may have sensitive information, such as Chinese who have
been in military programs.”
HIT is one of China’s top engineering schools and conducts
classified defense and space-related research, as well as regular
civilian studies. It has cooperation
agreements with Kim Chaek and
Kim Il Sung universities, which in
2013 sent the first group of 12
doctoral and postdoctoral students to enroll there, according to
the HIT website. That number increased to 28 by 2015.
Mr. Kim was in the first group.
Born in 1975, he studied mechanical engineering in North Korea before enrolling in HIT’s School of
Mechatronic Engineering, according to his research papers.
Mr. Kim and the other North
Koreans at HIT kept low profiles,
sharing two-bedroom apartments
and rarely socializing, university
staff said. “They were easy to recognize from their clothes and their
looks,” said one Chinese postgraduate student at HIT. They appeared to be supervised by one
individual, other students said.
Prof. Chen, a vibration-control
expert, has worked on defense
projects. He said he now focuses
on civilian research because “military project management is very
strict and not conducive to academic exchanges.”
In 2007, Prof. Chen co-wrote a
paper on designing composite
laminates to control vibration in
spacecraft. From 2012-2015, he
ran a project on vibration control
for hypersonic vehicles, according
to his profile and the National
Natural Science Foundation of
China. That project sponsored Mr.
Kim’s paper in March, whose coauthors included Wang Xiaoyu
from the Beijing Institute of
Spacecraft System Engineering,
which has worked on Chinese satellites and China’s manned spacecraft and lunar rover. Ms. Wang
declined to comment.
Prof. Chen said Mr. Kim’s work
was more directly related to helicopters but could be used in multiple fields. He and Mr. Kim applied
for a patent in February, saying
their technology has applications
in areas including aerospace, according to China’s patent registry.
Norman Wereley, a University
of Maryland aerospace-engineer-
moment,” she said.
Some schools say the costs
or the hassles to compete can
be more trouble than they are
worth. A quarter-acre vegetable
garden at St. Norbert College in
De Pere, Wis., withered after its
student founder graduated.
“We’re not going to be out
there weeding,” said Mary Jo
Morris, the school’s director of
dining and conference services.
But many others say they
have no choice but to keep up.
“If universities aren’t doing this,
they’re behind,” said David
McDonald, senior business director of housing and dining at
Rice University in Houston.
One of the first schools to
address such requests was Yale
University, where students
plowed a corner of the campus
gardens in 2003 to learn more
about what they were eating.
Today the 1-acre garden is a hybrid farm and living-history lab-
oratory, where students thresh
wheat to lend context to readings of Anna Karenina and grind
grain into a flatbread dough
made from a recipe in Yale’s
Beinecke Rare Book & Manuscript Library. And some flour
from the farm is baked into pizzas served at weekly food symposiums called Knead 2 Know.
“It gives our pizzas certain
nutty and incredibly light grain
notes that are so special,” says
Jeremy Oldfield, Yale’s manager
of field academics.
The free-trade coffee movement played an early part in influencing campus dining. When
Virginia Tech students demanded more free-trade coffee
in 2008, dining-services head
Ted Faulkner booked a trip to
Nicaragua, where he helped pick
beans at an organic, birdfriendly coffee estate that now
supplies the school. A churrascaria, a gelateria and a sushi
FOOD
Continued from Page One
nutrient-rich waters to cultivate
cilantro and oregano indoors,
without soil. The University of
California, Los Angeles has installed aeroponic grow towers
that grow plants with just mist.
Thyme, butter lettuce and microgreens are flourishing in the
breeze on the roof of UCLA’s
Bruin Plate dining hall.
“If you’re not eating good
things, how do they expect your
brain to grow?” said Hannah Logan, a senior at the University
of Massachusetts Amherst majoring in sustainable food and
farming.
UMass Amherst and other
schools say passing that test is
increasingly important as the
college-age population plateaus
and competition for the best
students intensifies. “A strong
dining program can attract top
students,” said Garett Distefano,
UMass Amherst’s director of
residential dining and sustainability.
He pointed to a survey from
2016 that showed 70% of more
than 1,200 UMass Amherst students said the quality of the
school’s food was an important
factor in their decision to attend. The school increased
spending on local and sustainably grown foods to $4.9 million
in the year through June, from
$2.7 million three years ago.
Some students and parents
balk at such spending after
watching college tuition climb
nearly 400% nationwide over
the past 30 years. UMass Amherst and other schools say they
offset the cost by cutting back
on food waste and striking deals
directly with local farmers. They
are keen to appeal to students
who say food is front and center
in their college decision.
“For me to see myself going
to a school, I also had to see
myself being able to eat there,”
said Ally Roberts, an aspiring
neuroscientist who started her
freshman year last week at the
University of Colorado Boulder.
“I see a huge correlation between what I eat and how I
think.”
Some schools are encouraging students to get their hands
dirty. Livia Marrs, a 21-year-old
senior at The College of William
& Mary in Williamsburg, Va., is
a “sustainability intern” who
spends more than 15 hours a
week tending rows of zucchini
and sweet potatoes at a farm 17
miles from campus. Ms. Marrs
recalls pulling a bunch of carrots from the ground that she
had grown herself this spring.
“The first time that happened
was just, like, a very fulfilling
JEREMY PAGE/THE WALL STREET JOURNAL
A North Korean’s
Education in China
abroad and giving them perks at
home has been central to Kim
Jong Un’s policy of byungjin, or
parallel progress, to develop nuclear weapons and the economy—a policy he introduced
publicly after taking power on
his father’s 2011 death.
North Korea began its nuclear-arms program with Soviet
backing in the 1950s and for
years had small exchanges of
scientists with the Eastern Bloc.
After the Cold War’s end,
Pyongyang traded for nuclear
and missile expertise, mainly
with Iran and Pakistan, according to historians.
Since North Korea’s first nuclear test in 2006, U.S. and U.N.
sanctions have focused on curbing the flow of money and dualuse materials to Pyongyang’s
weapons programs. The regime
has compensated by trying to
develop more indigenous weapons know-how, experts on North
Korea said.
Kim Jong Un’s byungjin policy has helped Pyongyang develop a wide spectrum of technical
expertise—including
metallurgists to make strong,
lightweight alloys for rockets,
mathematicians to help guide
missiles and satellite engineers
to improve targeting and reconnaissance, said experts and
Western government officials.
—Daniel Stacey
and Kersten Zhang
contributed to this article.
ing professor and MR-damping
expert, said Mr. Kim’s research
was fairly basic but would allow
him to do more sophisticated
work at home. “He could think
about, ‘well, hey if I want to do vibration control in a missile system,
I have a much better understanding of how to do that,’ ” he said. “I
don’t think he’s getting this education for scholarly reasons.”
At least 11 other North Korean
Ph.D. students left HIT in June,
while others switched to subjects
such as management studies that
aren’t banned by the U.N., university staff said.
Some may have taken home a
little extra know-how. North Koreans are suspected of violating library regulations by downloading
tens of thousands of papers from
subscription-based databases in
recent months at at least two
Chinese schools, including HIT, according to university staff and
students. On May 16, 57,000 papers were downloaded by nine
foreign students from the mechatronics and other faculties at HIT,
according to a notice from its library. Staff and students said the
culprits were North Korean.
—Jeremy Page
and Alastair Gale
bar are among Virginia Tech’s
other campus dining options.
“You’ve got to keep pace with
their expectations,” Mr. Faulkner said.
The bar is always rising, he
said. At a student dining committee meeting this spring,
Taqua Elleithy, a marketing and
psychology major, complained
that Virginia Tech’s pancake
syrup was too bland. Soon dining staff summoned Ms. Elleithy
and other student leaders and
presented them with french
toast sticks and a lineup of 13
sticky sauces. “They were like,
‘Yo, rank them,’ ” said Ms. Elleithy, a junior. The winner was
sweet and flavorful, with a
“good dipping and pouring consistency.” The university’s efforts impressed her.
“It’s one thing to like, listen,
but it’s a whole ’nother to follow through,” she said. “I think
it validates students’ opinions.”
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A10A
NY
* *
GREATER NEW YORK
Free Lunch Offered to All City Students
Federal program will
pay for the expansion,
which takes effect
on first day of school
New York City Public Schools, By the Numbers
STEVE REMICH FOR THE WALL STREET JOURNAL
As about 1.1 million students return to the classroom in the city, a snapshot of its public school system:
BY LESLIE BRODY
All New York City public
school students can get free
lunch starting Thursday, the
first day of classes, city officials said.
Chancellor Carmen Fariña on
Wednesday revealed the plan
for the nation’s largest school
system, which has more than
1.1 million students.
Officials said “free lunch for
all” wouldn’t require more city
spending. Instead, the district
this summer was able to prove
its eligibility for a federally
funded program that enables all
children in a community to get
lunch at no charge if more than
62.5% of the students are certified as poor enough to qualify.
“Students need healthy
meals to stay focused,” the
chancellor said.
Last year 75% of New York
City’s public school students
were eligible for free lunch, although some didn’t take advantage of it. City officials estimated about 200,000 more
students would get free lunch
this school year, and families
could save about $300 a year
per child.
Advocates for broader access
to free meals have long said
that some low-income children
are bullied for getting them. In
Chancellor Carmen Fariña
some districts across the country, advocates also said other
children whose parents had unpaid debts for cafeteria meals
suffered “lunch-shaming.”
The administration of
Mayor Bill de Blasio, a Democrat who is up for re-election
this fall, cast universal free
lunch as part of his equity
agenda. Some critics, however,
balked at giving meals to
wealthy students who could afford the $1.75 per lunch fee last
year in school cafeterias. Ms.
Fariña said she hoped many
families with resources would
donate savings to their schools
through parent associations.
Robin Broshi, who has an 8year-old son and a 12-year-old
daughter, applauded the program’s expansion, saying it
would remove the stigma that
some students attach to getting free lunch.
“There shouldn’t be class and
income politics while kids are
Test Scores
Graduation Rates
Charter Schools
Spending
Test scores have risen. Tests
changed in 2016, with fewer
questions and no time limits, but
most district students still don’t
achieve proficiency.
Graduation rates edged up. The
state has eased criteria for getting
diplomas, however, through new
career paths and options for
disabled students.
Charter schools have outpaced
district schools in enrollment, and
advocates say demand outstrips
supply. Charters expect 114,000
enrollees this year.
Prekindergarten growth, aid to
troubled schools and staff costs
have led to increased funding.
Percentage of students in grades 3
through 8 at or above proficiency:
Percentage of entering ninth-graders
who graduated in four years:
Percentage change in enrollment by
school type:
City public school budget for
programs:
50%
100%
100%
$25 billion
80
80
20
60
60
15
40
40
10
20
20
40
Math
30
20
English language arts
10
5
Charter schools
All public schools
0
2013
0
0
’14
’15
’16
’17
2012
’13
’14
’15
’16
2013
0
’14
’15
’16
’17
waiting on line” in the cafeteria,
Ms. Broshi said. Even so, she
said her “picky eaters” would
still want to make their own
lunches of turkey sandwiches,
edamame and cucumbers.
Officials said the expansion
didn’t reflect an increase in
children in poverty, but an improvement in a state data process that identifies the number
getting “direct certification”
for food stamps and Medicaid.
Officials said the state matching process had become more
efficient, enabling New York
City to join other school systems nationwide benefiting
from the so-called Community
Eligibility Provision.
Doug Turetsky, spokesman
for the city’s Independent
Budget Office, said his office
still had to examine the details
but questioned the city’s assertion that the expansion
would be cost-neutral, but he
noted that if it added expenses, “it may well be worth
any additional cost.”
Sculpture Damaged in 9/11 Attacks Rises Again
The city Department of Education said last year it received federal and state reimbursement of $384 million for
150 million breakfasts and
lunches. A department spokeswoman said the new program
lets the district get full reimbursement for all meals.
Baltimore also gives all students free lunch through this
program, as do many New York
districts, including Buffalo,
Rochester and Syracuse.
Some residents questioned
TED WARREN (L) MARK LENNIHAN (R)/ASSOCIATED PRESS
PLACE OF HONOR: Fritz Koenig’s ‘The Sphere,’ which once graced the World Trade Center plaza, is shown in the wreckage on Sept.
24, 2001. The 25-ton bronze artwork is now in its permanent home at the new Liberty Park, overlooking the 9/11 Memorial.
Amazon Will Open Facility on Staten Island
Amazon.com Inc. will open
a fulfillment center on Staten
Island and bring 2,250 fulltime jobs to the area, as the ecommerce giant works to
speed up delivery times in one
of the nation’s largest metropolitan areas and throughout
New York state.
The Staten Island facility,
expected to open next year,
would be Amazon’s first fulfillment center in New York, the
company said Wednesday. Employees at the 855,000-squarefoot facility—nearly the size of
15 football fields—would work
alongside robots to find and
ship
products,
including
household staples, books and
toys, the company said.
Gov. Andrew Cuomo’s administration helped broker the
deal through Empire State Development, the state’s economic-development arm.
The Seattle-based company
was awarded $18 million in tax
incentives, but won’t see the
money until after it has created the 2,250 jobs over a
five-year period, New York
state officials said.
Amazon said it would invest $100 million in the Staten
Island operation. The company
has committed to keeping 886
jobs elsewhere in New York
state, state officials said.
“New York continues to
demonstrate that we have the
workforce, technology, and the
pro-business climate to help
companies grow and succeed,”
Mr. Cuomo said.
An Amazon spokeswoman
declined to comment on tax
incentives the company was
awarded to build the facility.
She also wouldn’t say how
2,250
Jobs the company plans to
create at its fulfillment center
much the jobs will pay, on average, but noted that the company’s fulfillment-center positions typically pay 30% more
than traditional retail roles.
Good Jobs First, a group
that is critical of corporate tax
credits, said Amazon has re-
’15
’16
’17
’18*
THE WALL STREET JOURNAL.
why New York City didn’t join
sooner. A spokesman for the
State Education Department
said the agency hired a contractor last year to develop a
statewide data system to more
accurately identify eligible
children.
In New York City, free lunch
will be available to all children
in traditional public schools,
as well as those in the charter
schools and private schools
that participate in the school
lunch program.
Teen Jailed for Months
Has Charges Dropped
BY ZOLAN KANNO-YOUNGS
BY CARA LOMBARDO
AND MARA GAY
2013 ’14
Note: Dates for education data are academic years ending in year shown. Dates for budget are fiscal years ending June 30. *Adopted.
Source: New York State Education Department (test scores, graduation rates); New York City Charter Schools Center (charter enrollment); New York City
Department of Education (overall enrollment); Independent Budget Office (budget)
ceived more than $1 billion in
incentives since 2000 from
state and local governments to
help build its warehouses.
The Staten Island center
will be built by Matrix Development Group on the borough’s West Shore. The facility
will be a few miles from the
Goethals Bridge, which connects Staten Island with New
Jersey, in the Matrix Global
Logistics Park.
“It is the biggest jobs bonanza this borough has seen
in a long, long time,” Borough
President James Oddo said.
The borough president said
he worked with Mayor Bill de
Blasio’s administration and
Matrix Development for more
than a year to help ease zoning issues to pave the way for
Amazon to build the facility.
Charges were dropped
Wednesday against a Bronx
teenager who was jailed for
more than a year after he was
unable to make bail for a shooting he said he didn’t commit.
Pedro Hernandez’s case
gained national attention
when he refused to accept a
plea deal, choosing instead to
stay at the Rikers Island jail
complex and await trial. He
maintained that witnesses had
been coerced into making false
accusations against him.
Bronx District Attorney Darcel Clark said she dismissed
the gun possession and assault
charges against Mr. Hernandez,
now 18 years old, after a witness stopped cooperating and
evidence originally provided to
her office proved to be “inconsistent and contradictory.”
“Further, the victim of the
shooting is unable to identify
who shot him,” Ms. Clark said.
Mr. Hernandez was arrested
10 months after the Sept. 1,
2015, shooting of a 15-year-old
Bronx teenager, Shaun Nardoni, who was hit in the ankle.
Mr. Hernandez spent more
than 12 months in the Rikers
Island jail complex. During that
time, he completed his high
school requirements with honors behind bars and was nominated for a college scholarship.
“We appreciate the steps
that the district attorney’s office took to investigate the
case and meet with me over
the last several weeks,” said
Alex Spiro, Mr. Hernandez’s
attorney. “We’re thankful they
reached this just decision.”
Mr. Hernandez’s case drew
comparisons to that of Kalief
Browder, who was held at Rikers for three years without
trial on a robbery charge before the case was dismissed.
He later committed suicide.
Mr. Hernandez was released
in July when an international
human rights organization
paid his $105,000 bail.
“This validates exactly what
we were saying all along and
why the money bail system in
this country is so fundamentally unjust in the first place,”
said Wade McMullen, the managing attorney for the organization, Robert F. Kennedy Human Rights.
Mr. Hernandez still faces a
charge in a separate 2015 robbery. He has pleaded not guilty.
“We will answer the charges in
court,” Mr. Spiro said.
While he was in Rikers, Mr.
Hernandez’s family hired a private investigator who found evidence they said proved police
and Bronx prosecutors coerced
witnesses into making false accusations in the shooting.
In an interview with WNBC
last month, a 20-year-old
Bronx man said a New York
Bronx District
Attorney Darcel
Clark said that
inconsistent
evidence led
her to dismiss
the charges.
Police Department detective,
David Terrell, forced him to
identify Mr. Hernandez as the
man who shot Mr. Nardoni.
Mr. Hernandez sued Detective Terrell and New York City,
alleging he was framed. Detective Terrell is currently on
modified duty in a separate
case. His attorney didn’t return
a request for comment, but has
said previously that the accusations were based on lies by
people the detective arrested.
Ms. Clark said her office is
investigating the matter and
“will not tolerate misconduct.”
OYSTER PERPETUAL
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A10B | Thursday, September 7, 2017
NY
* ****
THE WALL STREET JOURNAL.
GREATER NEW YORK
New Lap of Luxury on Park
Tower going up next to church has 50-foot pool, asks $50 million for the penthouse
BY JOSH BARBANEL
A new Manhattan boutique
condo at 1010 Park Ave., where
prices start at $15 million, is
coming to market after a summer in which luxury sales have
been slowing.
Kirk Henckels, director of
Stribling Private Brokerage, said
contracts signed on Manhattan
listings of $5 million or more
have been sliding since May
A rendering of the new condo tower 1010 Park Ave., built on a site where there once was a rectory.
dozen sales of lower-priced,
lower-floor apartments that
went on the market for the
first time last year.
Some brokers said the list
prices at 1010 Park Ave.
might be hard to achieve at
a time when the luxury market has been weak, in a
building, at 206 feet tall,
that lacks the cloud-high
views that appeal to many
international buyers.
Donna Gargano, a senior
vice president of development at Extell, said that after previewing the building
with the brokerage community, she felt the prices are
“achievable” given the
tower’s fine finishes and the
limited availability of condos
in the area.
The building was designed
by architecture firm Beyer
Blinder Belle to complement
the classic look of the co-ops
that line Park Avenue, Ms.
Gargano said, but with large,
modern condominium apartments that lack the restrictive rules imposed by many
older cooperatives.
“We are seeing a gamut of
interest from people who
have been living on Park Avenue for decades and buyers
looking to live along Park
Avenue,” she said.
The Park Avenue Christian
Church was loosely modeled
on a 13th-century chapel,
Sainte-Chapelle in Paris.
Preservationists and occupants of nearby buildings
opposed the demolition of
compared with recent years, after showing signs of recovery
earlier this year.
Figures provided by Mr.
Henckels showed that sales in
downtown condominiums, as
well as co-ops on Central Park
West and the Upper East Side
priced at $5 million or more,
rose 25% in the first four
months of 2017 compared with
the same period the year before.
Since May, however, they
fell by 41% compared with the
same period last year. The tally
includes sales through Aug. 8.
Uptown co-op sales for $5
million or more fell more
sharply than condominium
sales. On Central Park West,
contracts on co-ops costing $5
million or above were listed as
signed on only two units since
May, compared with eight during the same period last year
and 14 in 2014.
On the Upper East Side
there were 11 comparable co-op
sales, compared with 20 last
year and 29 in 2014.
—Josh Barbanel
the existing rectory before
the Landmarks Preservation
Commission in a dispute that
pitted the financial needs of
a religious institution
against preservation principles.
In the end, the commission approved the demolition after Extell dropped
plans to have the tower cantilever over the steep church
roof. The developer agreed
to clad the bottom of the
new tower in the same local
stone and limestone trim
used in the rectory. Above,
the new building will be clad
in hand-cut Indiana limestone, with 5-foot by 8-foot
windows.
Dolly Lenz, a Manhattan
broker, said prices on the
major avenues on the Upper
East Side generally are soft,
particularly on Park Avenue,
and that 1010 Park Ave.
might have “come out of the
gate too high.”
“I think their timing probably could not have been
worse,” she said.
But Wendy Maitland, a
broker at Brown Harris Stevens, said the building was
priced properly “as long as
the seller is patient.”
“Everything is cyclical,”
she said, “and historically
speaking, New York City has
always continued to upcycle.”
As a long-anticipated corruption trial opened Wednesday in New Jersey, Sen. Bob
Menendez’s lawyer argued that
his client accepted expensive
gifts from a wealthy doctor out
of friendship, and he pushed
for government action that
might benefit his pal because
of sincere policy beliefs.
Defense attorney Abbe
Lowell laid out that argument
in Newark federal court during
opening statements in the
trial, which is expected to last
at least six weeks.
Mr. Menendez, a 63-year-old
two-term Democratic senator,
faces a 12-count indictment including fraud and bribery
charges, which carry penalties
of between five and 20 years
in prison.
Prosecutors contend he accepted $1 million in gifts and
campaign contributions in exchange for political favors for
Florida ophthalmologist Salomon Melgen, his co-defendant.
The senator has maintained
he did nothing wrong and
that the government is seeking to criminalize his longstanding friendship with Mr.
Melgen.
“I started my public career
fighting corruption and I have
always acted in accordance
with the law,” Mr. Menendez
said Wednesday outside the
courthouse. “I believe when all
of the facts are known, I will
be vindicated.”
In a case in which the evidence is largely circumstantial, the two sides laid out opposing interpretations of the
facts during opening remarks.
“This case is about a corrupt politician who sold his
Senate office for a life of luxury he couldn’t afford,” prosecutor Peter Koski told the jury.
Between 2006 and 2013, Mr.
Menendez accepted gifts, including a luxury hotel room in
Paris, stays in a resort in the
Dominican Republic, private
and first-class flights, and more
than $750,000 in campaign
contributions, Mr. Koski said.
Mr. Menendez returned the
favors, the prosecutor said, by
using his office to try to help
Mr. Melgen in three ways: securing travel visas for the doctor’s girlfriends, pressuring officials to resolve an $8.9
million medical-billing dispute
in the doctor’s favor, and seeking to block a U.S. government
donation of equipment to the
Dominican Republic, for the
benefit of a port-security business the doctor had invested in.
“Make no mistake about it.
Robert Menendez was Salomon Melgen’s personal U.S.
senator,” Mr. Koski said.
The prosecutor promised to
show jurors emails and documents laying out a tight timeline of gifts from the doctor,
and resulting actions from the
senator. And he sought to rebut
the claim that the defendants
were simply friends. “Friends
can bribe each other,” Mr. Koski said. “There’s no friendship
exception to breaking the law.”
Mr. Lowell said the prosecution’s case ignores the fact
The two sides laid
out opposing
interpretations of the
facts on Wednesday.
that the defendants have a relationship that stretches back
to the early 1990s. The evidence will show that Mr. Menendez never took any improper action as a senator, the
defense attorney said.
The jury will see that Mr.
Menendez could have taken
legislative action to help his
friend, but instead only lobbied
the executive branch, with little benefits to show for it, Mr.
Lowell said. “The one thing I
am asking you today to pay the
closest attention to is what you
will not see,” Mr. Lowell told
jurors. The prosecution won’t
present a single piece of evidence showing a quid-pro-quo
agreement, he said.
LOUIS LANZANO/BLOOMBERG NEWS
Sales Have Slowed
In High-End Market
BY THOMAS MACMILLAN
WILLIAMS NEW YORK
The 1911 Gothic Revival
Park Avenue Christian
Church, citing financial pressure a few years ago, sold off
its adjacent rectory to make
way for a limestone condominium tower that soon will
soar above the 70-foot-high
steeple on the corner of East
85th Street.
Now, the
PROPERTY 16-story building, its concrete framework protruding above the
surrounding Park Avenue coops, is coming on the market. It houses only 11 opulent
apartments, with some of
the highest asking prices in
Manhattan. The smallest
unit has four bedrooms and
4½ baths.
The new condo, known as
1010 Park Ave., offers a large
package of amenities, including a subterranean 50-foot
lap pool, which rarely is seen
in a boutique building.
The church was paid just
under $25 million by Extell
Development Co. in 2014, in
a deal in which it was promised a street-level entrance
and two below-grade community spaces in the new
building.
Prices for the condos start
at $15 million and go up to
$50 million for the four-bedroom penthouse, with 6,745
square feet of space in addition to a terrace overlooking
Park Avenue.
If the building sells out at
its average asking price of
just under $5,000 a square
foot, it would set a new
benchmark for the Upper
East Side. It would rank as
the fourth most expensive of
all New York City condos
based on the past 12 months
of sales, according to the
CityRealty 100 list of condos.
It would trail notable Midtown buildings 15 Central
Park West, 432 Park Ave.
and the north tower of the
Time Warner Center.
At current prices, 1010
Park Ave. would outshine recent sales at Extell’s 1,005foot-tall One57 Midtown skyscraper, which includes a
Lawyers Spar About
Perks of Friendship as
Menendez Trial Opens
Sen. Robert Menendez arrived Wednesday at federal court in
Newark with his children, Alicia Menendez and Robert Menendez Jr.
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MANHATTAN
NEW YORK CITY
Host on Radio Show
Charged With Fraud
Police Shoot and Kill
Man Holding a Knife
Sports radio talk show host
Craig Carton and a business associate were arrested Wednesday
for allegedly bilking millions of
dollars from investors in a concert ticket-selling scheme.
In a criminal complaint filed in
Manhattan federal court, Mr. Carton, co-host of WFAN’s “Boomer
and Carton,” and Michael Wright
are accused of lying to investors
and claiming they had connections with artists’ management
companies and venue operators.
The two men have been charged
with securities fraud, wire fraud
and conspiracy.
Mr. Wright, 41 years old, denied involvement in any criminal
activity through a lawyer. Mr.
Carton, 48, and his lawyer
couldn’t be reached for comment.
Prosecutors say Messrs. Carton and Wright and an unidentified person told investors they
could secure large blocks of tickets to concerts of such performers as British singer Adele.
Messrs. Carton and Wright, prosecutors say, claimed the tickets
could be resold at higher prices,
turning a profit for investors.
Despite those promises, authorities say, the men used investors’ money to repay earlier investors and to cover personal
expenses, such as gambling debts.
CBS Radio, owner of WFAN,
said Mr. Carton has been suspended pending an investigation.
—Maria Armental
New York Police Department
officers shot and killed a man
armed with a knife and toy gun
in the Bronx on Wednesday, authorities said, in the first police
shooting in the city captured on
body-worn cameras.
Officers were sent to 3700
Pratt Ave. around 4 p.m. after
the landlord of the apartment
building called expressing concerns about one of his tenants,
Chief of Department Carlos
Gomez said. Police found the
tenant, a 31-year-old man, inside
a third-floor apartment.
Chief Gomez said the man
was brandishing a knife in his
left hand and held what appeared to be a gun in his right
hand, concealed behind his back.
The officers asked him several
times to drop the knife and
asked if the gun was real, Chief
Gomez said.
He said the man raised the
gun at the officers, prompting
one officer to use a stun gun
and two officers to fire their pistols. The man was declared dead
at the scene.
Police recovered the knife and
a toy gun with “red laser sights”
at the scene, Chief Gomez said.
Chief Gomez said NYPD Commissioner James O’Neill would
consult with legal officials before
deciding whether to release the
footage captured by four of the
officers’ body-worn cameras.
—Zolan Kanno-Youngs
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A11
LIFE&ARTS
PAUL SCHIRALDI/HBO (3)
‘The Deuce,’ co-creator George
Pelecanos, at right, with Gbenga
Akinnagbe, tried not to glamorize or
exploit the old Times Square. James
Franco, above, and Maggie Gyllenhaal,
above and below, star in the series.
TELEVISION
‘The Deuce’ Explores
New York’s Seedy Underbelly
BY RICHARD TURNER
GEORGE PELECANOS, a crime
novelist and TV writer who
came of age in Washington,
D.C., in the 1970s when it was a
majority African-American city,
loves the music of soul/funk
singer Curtis Mayfield.
“He’s a hero of mine, a spiritual hero,” he says. “I had the
‘Super Fly’ soundtrack on the
eight-track in my Camaro, and
I played it around the clock.”
Mr. Pelecanos is thrilled
that a Mayfield track is the
theme song for HBO’s series
“The Deuce,“ which premieres
Sept. 10 (the pilot episode was
quietly made available late last
month). His “(Don’t Worry) If
There’s a Hell We’re All Gonna
Go” plays during the opening
credits of the show, about the
skeezy nadir of New York’s Times
Square from 1971 through the ‘80s.
Mr. Pelecanos co-created the series with David Simon, for whom
he worked as a writer-producer on
“The Wire” and “Treme.” Unlike
those two shows, contemporary
dramas about race and class in
Baltimore and New Orleans, “The
Deuce”—while also about race and
class—is a period piece.
Will people care about a squalid
memory? The old Times Square of
pimps, prostitutes, peep shows,
porn flicks and paddy wagons is
gone, replaced by a different kind
of hustle, aimed at tourists.
It’s no longer like the place Rob-
ert De Niro’s Travis Bickle railed
against in the 1976 classic “Taxi
Driver.” “Scorsese had it easy,”
says Mr. Pelecanos. “All he had to
do was turn on the camera. We
had to rebuild Times Square.”
(Which they did, using the less altered Washington Heights neighborhood of Manhattan, with computer-generated imagery.)
Historical dramas have been a
staple of high-end cable TV for
years, as Borgias, Tudors and Vikings romped toplessly through
time. But period pieces have a
spotty track record, and critics
complain they often get show-offy
about the details at the expense of
character and plot. For every “Mad
Men” and “Downton Abbey” there
are a host of failures, including
HBO’s big Sunday-night rollout of
last season, “Vinyl.” “Boardwalk
Empire” and “Deadwood” conferred prestige on HBO, but nothing like the attention for the contemporary “The Sopranos” or the
fantasy “Game of Thrones.”
Mr. Simon’s layered style, weaving myriad characters and
plotlines, has generated more critical acclaim than blockbuster ratings. Even though some New Yorkers profess to miss the old Times
Square, the producers knew that
to seem to glamorize or exploit it
would be fatal. “We were aware
we were walking through a mine-
field,” Mr. Pelecanos says.
Sex is all over the show, but
it is mostly grim and transactional. There are characters to
root for: James Franco plays
the manager of the Hi-Hat bar,
and his twin brother, trying not
to sink too deep into corruption. Maggie Gyllenhaal is an
independent-minded hooker
and mom trying to get off the
streets. In real life, these stories almost always ended in a
slag heap of drugs, violence,
AIDS and death. Whether the
show will reflect these unhappy
endings will be clear when it
finishes its run, which producers hope will be three seasons.
The writing team was eclectic. Novelists Megan Abbott and
Lisa Lutz were on the writing
staff. There was also a transgender writer. Michelle MacLaren (“Breaking Bad”) directed
the first and last episodes. Two
more of the eight episodes had female directors. The producers gave
Ms. Gyllenhaal extraordinary latitude in shaping the show from a
woman’s perspective, Mr. Pelecanos
says. “They had to trust us, but if
they were going to trust us we had
to let them in.” Arguments in the
writers’ room were fierce.
What would carry the show was
always going to be the writing—
the streetwise style and supercool
patois Messrs. Simon and Pelecanos are known for, along with
Richard Price, another novelist
writing for the show. They’re famous for gritty, authentic chroni-
cling of life on the urban margins.
The language is colorful, the humor is cynical. A Dickens novel becomes a subplot.
In one scene, Ms. Gyllenhaal’s
character is trying to learn about
dirty moviemaking from a
schlubby, pornstached director. He
asks her how she got into the life:
“Daddy stuff?”
“Not in the way you think,” she
says. “You think like a f---ing degenerate.”
“I am a degenerate,” he says
with a shrug.
It’s one thing to avoid romanticizing the era: The other trick was
not to impose anachronistic political correctness at the same time.
Trying to stay grounded, they interviewed multiple people who had
survived the period, and based
some characters on them. They
read Gail Sheehy’s writings about
streetwalkers from the time, which
partly inspired a journalist’s character in the show.
Some of what was going on in
Times Square had positive undercurrents. Amid new sexual freedoms, the women’s movement was
picking up steam. Gay communities were solidifying—although
they would soon be devastated by
AIDS. But the legacy of ubiquitous
porn lingers today, he says.
“When I was a kid, you went
looking for the Playboy under your
dad’s bed, and all it was, was a picture of a woman’s breasts. There
wasn’t anything being done to her,
violence being committed. Now a
12-year-old boy opens a laptop—
and it’s not pretty. It gives you a
bad attitude toward women.”
Pretty much everything about
the old Times Square had a seedy
underbelly, sometimes in subtle
ways. Mr. Pelecanos was among
those who obsessed over the music, the cars—including pimpmobiles—and the clothes, which were
celebrated in the blaxploitation
films of the era, but which hid
some of the realities.
“I would tell the costume people,
‘I want these guys to look fly from
far away, but I want to make sure
their collars are kind of frayed, the
cuffs are dirty. Their cars, too. These
guys didn’t make much money. It
was all about the show. They were
never going anywhere. This was
when their lives were going to end.”
The same thing applied to the
women working for the pimps. “I
mean, none of them ended up marrying an older rich guy and moving to Westchester,” says the cocreator. “It just didn’t happen.”
THE MIDDLE SEAT | By Scott McCartney
WHY SALES OF A ROOMIER PLANE AREN’T TAKING OFF
Swiss is
using the
Bombardier
CS100 on
short-haul
routes.
DENIS BALIBOUSE/REUTERS
Mirabel, Quebec
THERE’S A NEW PASSENGER jet
with wide seats, ample overhead
bin space and an extra-quiet engine.
It isn’t selling well.
Four years after its maiden
flight, only two small European
airlines fly the Bombardier C Series of 100- and 145-passenger
planes. Delta will begin flying the
plane next year. While there are
many reasons for the slow sales,
the lack of interest highlights the
low priority airlines and passengers place on comfort.
The two airlines currently flying the C Series—Swiss and Air
Baltic—say most coach passengers won’t pay higher fares for
comfy cabins. For a small fare difference, they’ll still pick less-comfortable airplanes. Airlines say
cost is the No. 1 factor when evaluating new airplanes.
“Passengers get into anything
that flies if the ticket is cheap,”
says Martin Gauss, chief executive
of Air Baltic, based in Riga, Latvia.
He says flying the new plane has
brought attention to his brand. Pas-
sengers notice how quiet the C Series is and that you can pass by a
trolley in the aisle without getting
blocked. Overhead bins are large,
and since there are only five passen-
gers in a row instead of six, there’s
more bin space per passenger.
The CS100, which seats 100 to
125 people, and its sister CS300,
with up to 145 seats, were de-
signed to bring the low per-seat
costs of big planes into the smallplane arena, usually dominated by
cramped regional jets.
Bombardier, a longtime pro-
ducer of regional jets, saw a gap in
the aircraft market and decided to
venture into larger planes. Boeing
and Airbus have made their popular single-aisle jets longer so airlines can pack in more seats. Bombardier figured many markets with
service on 50-, 70- and 90-seat regional jets would get bigger, too.
In aviation, there’s usually a
trade-off between comfort and
cost. Making an airplane wider requires a beefier fuselage. Flying
more weight burns more fuel, adds
cost and can reduce how far the
plane can fly.
But with new fuel-efficient engines and lighter airframe materials, Bombardier found ways to keep
operating costs low and still offer a
wide cabin. The C Series cabin at
its widest point is 129 inches, only
10 inches narrower than a Boeing
737. But the Boeing has six seats in
an aisle; the C Series only five.
That means each passenger can
have an 18.5-inch-wide seat, roomier than any other coach singleaisle airplane. Alternatively, BomPlease see SEATS page A12
THE WALL STREET JOURNAL.
A12 | Thursday, September 7, 2017
LIFE & ARTS
ART REVIEW
ANTON VIDOKLE (TOP); THE GREEK STATE MUSEUM OF CONTEMPORARY ART, THESSALONIKI
Immortality and the Cosmos
A Wider Berth
Bombardier's C Series seats are wider than those in similar planes
made by Boeing and Airbus.
Seat
18.5”
Bombardier C Series
129”
Cabin
17”
Boeing 737
139”
18”
of the need to colonize other planets, since the billions of humans
brought back to life would make
the New York subway at rush hour
seem like midnight in the Sahara.
Federov realized the magnitude
of Cosmism’s central task, and
called upon everybody in every
profession and enterprise to make
material immortality humanity’s
“common project.” After all, he
reasoned, we struggle to overcome
hunger and disease, so why don’t
we all struggle equally to over-
zakhstan and back to Moscow for
traces of Cosmism’s influence. The
camera pans over a cemetery, a
Berlin
man swims with his dog, while
THIS IS A horizontal city whose
quotes from Federov are heard in a
cultural institutions enjoy lots of
deadpan voiceover. The books in
floor space. That is especially true
Arseny Zhilyaev’s 2017 installation,
of the Haus der Kulturen der Welt
“Intergalactic Mobile Fedorov Mu(“House of the World’s Cultures”),
seum-Library, Berlin,” strain for
whose building was a gift from the
connections to the movement,
U.S. Opened in 1957 and designed
which the exhibition tries to mainby Hugh Stubbins—who would go
tain on art-historical life-support.
on to create the slant-roofed Citi“Art Without Death” is the sixth
corp Center in New York—the ediin HKW’s 15-part series of events
fice is known by locals as “the
under the rubric “100 Years of
pregnant oyster.” To this
Now.” The whole project, the inwriter, it looks more like a
stitution says, is “an analysis of
late-’50s sci-fi spaceship.
the present time by linking back
The now retro-futuristic
to historical utopias.” The series
HKW is the perfect venue for
seems to those of us who’ve seen
the grandiosely packaged and
Wim Wenders’s high-minded
staged, but somehow poi1987 film, “Wings of Desire” (angnantly slight, “Art Without
gels who look like average guys
Death: Russian Cosmism.” It’s
come down to Earth to give adnot really an art exhibition as
vice), both typical of a German
such—with just one big darkbent to philosophize somewhat
gray room sparsely installed
opaquely about everything, and a
with 55 mostly small paintings
desire, particularly in Berlin, to
and drawings, two of those
come to terms with the conse“black box” video chambers,
quences of the fall of the Wall.
and a large star-shaped platGiven the exhibition’s digging
form in the lobby, on which
around in Cosmism’s ruins, it
rest allegedly relevant books
would have been better had
Film still from Anton Vidokle’s ‘Immortality for there been more than one room
in both German and English.
All,’ top, and Ivan Kliun’s ‘Red Light. Spherical
(An ancillary timeline punctuof art from its time, all from the
Composition’ (1923), above
ated by little TV screens
collection of the Moscow-born
shows the likes of Lenin’s fuGreek diplomat George Costakis
neral and Yuri Gargarin going into
come the ultimate bummer, death
now housed in the Greek State Muorbit.) Rather, “Art Without Death”
itself? Such pie-in-the-sky (or
seum of Contemporary Art.
is an explication-by-artifact of the
borscht-in-the-cosmos) appealed to
As it is, there’s an oddly forlorn
influence of the philosophy of Nithe likes of Aleksandr Rodchenko
feeling to an exhibition about
colai Federov (1829-1903) on ideal(whose “Construction on White
something so wildly optimistic at
istic early modern Russian artists.
[Robots],” 1920, is one of the betits inception. In the surprisingly
As the press release puts it,
ter works in the paintings gallery),
empty HKW (especially for an
Federov’s “Russian Cosmism was a
Maria Ender (the fully abstract
opening weekend) it was clear that
movement that called for material
“Transcription of Sound,” 1921),
nobody at all was ever materially
immortality and resurrection, as
and Gustavs Klucis (whose 1922
resurrected. It also seemed like the
well as travel to outer space. It delogo design reflects Cosmism’s onentire population of Berlin was
veloped out of the spirituality of
ward-and-upward imperative).
someplace else, too.
nineteenth-century Russia and a
Alas, Cosmism predictably fell
strong fascination with science and afoul of Stalin, who had no use for
Art Without Death:
technology.” Yet Federov was an
artists’ dreams of eternity. Many
Russian Cosmism
atheist—or at least he had a big
adherents were imprisoned or exeHaus der Kulturen der Welt,
falling-out over religion with onecuted. A 2014-17 film trilogy, “Imthrough Oct. 3
time admirer Leo Tolstoy.
mortality for All” by Anton Vidokle
Federov’s brand of immortality
(on constant cycle in those video
Mr. Plagens is an artist and writer
would be accomplished without
rooms) looks around, in sunlighted
in New York.
God or a spiritual afterlife. Think
melancholy, from Siberia to KaBY PETER PLAGENS
Airbus A320
146”
Source: The airplane manufacturers
SEATS
Continued from page A11
bardier is also offering a unique
option for the poor souls stuck in
the middle: a 19-inch-wide seat,
while window and aisle seats get
18 inches.
The C Series, built at Bombardier’s factory here at the Montreal airport, also has larger windows than rival narrow-bodies,
and more of them—1.5 windows
per row on average. The cabin
feels open and roomy, especially
when daylight pours in.
“I think it’s as strong a selling
point as we thought it would be,”
says Fred Cromer, Bombardier’s
president of commercial aircraft,
says of the plane’s cabin.
Which is to say, secondary.
Sales were so bad that Bombardier took a $3 billion write-down
on the C Series program and
needed a bailout in the form of
an investment from the Canadian government. Problems
were many, from delays in the
flight-test program to analysts
suggesting Bombardier was pricing the aircraft too high.
Firm orders currently total
about 350, Mr. Cromer says. By
comparison, Boeing has 3,816 orders for its newest 737 and Airbus has 5,167 orders for the newengine option of the A320 family.
Mr. Cromer, a former airline
executive, says orders will pick
up now that the plane is in service and proving to be both economical and reliable. With that,
the passenger comforts will sway
WALL
STREET
JOURN
THETHE
WALL
STREET
JOURNAL.
airlines. “We’re starting to check
all the boxes,” he says.
United President Scott Kirby,
whose airline canceled an earlier C
Series order, says he’ll probably
examine the 100-seat market again
someday. But he prefers bigger
planes. Even if you can’t fill a 737
on a route today, he says, in 10
years you’ll likely be able to, and
the airline will own the plane for
20 years. “We’re in a world where
flying bigger and bigger planes is
just better and better,” Mr. Kirby
said at the Boyd Group conference
in Las Vegas last week.
Asked later about the benefits
of passenger comfort, Mr. Kirby
said, “All that stuff matters. But I
would have a hard time giving
the C Series a passenger preference premium to a 737 or 320sized aircraft.”
Bombardier’s list prices are
close to or even higher than list
prices for larger airplanes. The
CS100 lists for $79.5 million and
the CS300 for $89.5 million. The
current list price of a Boeing
737-700 is $82.4 million. But analysts say Bombardier is now
more willing to discount prices.
At Swiss, the fuel burn on its
C Series planes has been 4% better than Bombardier predicted
and the jets have been reliable,
with few cancellations, says Peter
Koch, Swiss C Series fleet chief.
Mr. Koch says the new plane
can upend the basic airline strategy to cram in more seats to improve profitability. “The C Series is
breaking that chain. It has a good
amount of seat comfort. However,
we’re getting big savings from fuel
and maintenance,” he says.
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THE WALL STREET JOURNAL.
NY
Thursday, September 7, 2017 | A13
LIFE & ARTS
MOVIES
Envy Triggers a Midlife Crisis
IN THE MOVIE “Brad’s Status,”
Ben Stiller’s character lies in bed
wondering how he fell behind his
college buddies who became rich
and famous.
“It felt like the world was rubbing my nose in something,” he says
in a voiceover in the film, which
opens Sept. 15. Brad runs a nonprofit and has a wife who works in
government and a son looking at
Harvard. By objective measures, life
is good. But is it too late to boost
his net worth? When his in-laws
die, Brad speculates, maybe his family will inherit their house.
The fictional stream of consciousness reflects a real ocean of
societal envy that seems to be roiling. It’s being fed by social-media
posts that put our lives on display
and have a way of turning friends,
family members and high-profile
strangers into competitors.
Envy has long been a favorite
deadly sin of filmmakers, a powerful motive for characters who
covet other people’s power (“Wall
Street”), spouses (“Fatal Attraction”) or talent (“Amadeus”). With
“Brad’s Status,” writer and director Mike White says he wanted to
get inside a modern and pervasive
kind of jealousy, in which mundane
things—a crummy seat on a plane,
someone’s vacation photos on
Facebook—turn into referendums
on self worth.
The film rides Brad’s seesaw of
self-esteem as he tours colleges
with his musician son (played by
Austin Abrams). Through narration and comedic fantasy sequences he compares his middleclass life with those of former
friends, including Luke Wilson as a
hedge-fund founder, Michael Sheen
as a best-selling author and TV
talking head, and Jemaine Clement
as a tech entrepreneur who retired
in his 40s.
Informed that his son has a good
shot at Harvard, Brad’s pride swells
in his accomplishment as a father.
That feeling sours when he pic-
AMAZON STUDIOS (2)
BY JOHN JURGENSEN
Ben Stiller, in dark shirt, left, stars in
‘Brad’s Status,’ by Mike White, above.
tures himself becoming jealous of
his son’s future accomplishments.
“In his mind, you feel like his
whole sense of self is at stake
from moment to moment,” Mr.
White says of the title character.
The director says the film was a
way to sort out his own feelings of
competition and covetousness in
Hollywood, where box-office
grosses, TV ratings and celebrityfueled promotions serve as highly
visible measuring sticks.
The 47-year-old Mr. White built
his career in the 2000s with films
he wrote and sometimes acted in.
They include “Chuck & Buck,” “Orange County,” “The Good Girl” and
the Jack Black vehicles “School of
Rock” and “Nacho Libre”—comedies that touched on ambition and
being on the flip side of success.
More recently, Mr. White appeared
on HBO in the acclaimed series
“Enlightened.” He co-created it
with Laura Dern, who starred as
an idealistic and delusional corporate whistle-blower.
“In Hollywood, I’ve been lucky
enough to have had a career that
has lasted a while. That means
each year I come into contact with
more people who are super successful, and they become part of
your barometer,” Mr. White says.
He once measured himself
against high-school classmates but
the comparison shifted after professional gigs such as writing on
“Freaks and Geeks,” a 1999 TV sitcom that launched the careers of
Hollywood heavyweights including
Judd Apatow, James Franco, Seth
Rogen and others.
“I’m embarrassed by the part of
me that is Brad,” says Mr. White,
adding that he swore off Instagram
because he started resenting his
friends—and himself—for curating
life through personal photographs.
Inevitably, there are relapses.
Mr. White was hired to work on
the screenplay for “The Emoji
Movie,” a high-paying job that he
says involved three weeks of “restructuring” a script about sentient
icons living in a smartphone. He
got a writing credit on the movie,
which was released in July—and
received a unanimous beating from
critics. Having his name tied to the
flop was an ego blow to the part of
himself “chasing the respect of the
world,” Mr. White says. Yet the
money he earned from “The Emoji
Movie” gig bought him time to
write “Brad’s Status” and another
film, “Beatriz at Dinner.” Released
in cinemas in June, “Beatriz at Dinner” starred Salma Hayek as a holistic healer at odds with the
wealthy guests at a party hosted
by her client.
“For me to keep doing the things
I want, you have to become more
of a mercenary [with jobs like ‘The
Emoji Movie’]. It sounds sellout but
I don’t know any other way, because ‘Beatriz at Dinner’ is not going to pay my bills, that’s for sure.”
In “Brad’s Status,” the title
character’s status anxiety is amplified by his son’s college application, one of life’s first major ranking processes. As the movie
unfolds, Brad gains perspective
through some cringe-worthy interactions. Still, it’s hard for him to
shake the worry that contentment
is just a rationale for complacency.
“Ambition is a drug. You have
your moment and then it starts to
fade and you need it again,” Mr.
White says. “You need to slap the
surface of the water and see the
ripples and feel like you achieved.
For me, as I get older I try to separate that motivation from the
creative pleasure [of writing]. It
becomes more important to my
own sanity.”
The director also may have
found some satisfaction in casting
himself in “Brad’s Status” as a
wildly successful Hollywood director whose decadent home is
splashed in an issue of Architectural Digest, much to the annoyance of his old college friend.
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THE WALL STREET JOURNAL.
A14 | Thursday, September 7, 2017
GETTY IMAGES (3)
SPORTS
The NFL wants to showcase young superstars like Dak Prescott, left; allow players like Seattle’s Rodney Smith, above, to celebrate more; and show fewer commercials and more Tom Brady.
FOOTBALL
The NFL’s Plan to Win You Back
pushed for more divisional and intra-conference games aiming “to
return Monday Football to the position where we think it should be.”
The league had little choice but
to grant many of those wishes this
season, not just because ESPN pays
the NFL $1.9 billion a year on average for the Monday night games.
Even though NFL games remained
the most popular shows on televi-
thorough, and very sincere,” said
Burke Magnus, ESPN’s executive
vice president for scheduling and
programming.
The stakes are high for a league
that has been secure in its supreme status for decades.
“This season is really a big indication of was last year just a
misnomer, or is that the trend
moving forward?” said Steve Rosner, partner of 16W Marketing,
which represents NFL broadcasting talent such as Phil Simms and
Boomer Esiason.
Network chiefs are as anxious as
their league counterparts. NBC
Sports president Mark Lazarus, who
hopes to use the NFL as a launching
pad for the Winter Olympics in February, said it was important that
ratings bounce back this year.
“Every Sunday night I am up all
night waiting to see what our
numbers are,” he said. “We get our
report card every Monday morning
and I want high marks.”
Designing a more appealing
schedule is a key part of the fix.
Brian Rolapp, chief media and
business officer for the NFL, said
the league tries to heed its media
partners’ wishes every year,
though it’s difficult to give each
network all the matchups it wants.
“I enter every season optimistic but a lot depends on what happens on the field,” Rolapp said.
For 2017, Magnus said ESPN demanded more support for Monday
Night Football, once the league’s
premier showcase. The network
BY MATTHEW FUTTERMAN
AND ANDREW BEATON
The National Football League
has never had an off-season like
2017.
League officials spent a nervous
spring and summer plotting to ensure that the season beginning
Thursday is nothing like 2016, a
year when the NFL’s aura of invincibility cracked. Television audiences
declined and empty seats dotted
stadiums as the league confronted
problems including increased media
competition, continuing questions
about player safety, and controversial player protests during the national anthem.
Suddenly desperate to right its
ship, the league sought advice
from its media partners to design
a season they hope will start
strong and gain momentum. The
schedule is packed with attractive
games in prime-time slots, especially in September and October, to
get fans hooked early.
The league and its television
partners also moved forward with
a plan to cut the number of commercial breaks and made several
other moves to improve the flow
of the game. The networks shuffled announcers in search of voices
that would appeal to younger fans.
On the field, penalties for innocuous touchdown celebrations—moments tailor-made for viral videos—were done away with.
“This was very detailed, very
The stakes are high for
a league that has been
secure in its supremacy
for decades.
sion, ratings plummeted for the
first half of the season before rebounding somewhat over the final
two months. Average viewership
per game fell 8% overall. Ratings
for Monday night games on ESPN
and Thursday night games on the
NFL Network dropped 12% and 14%,
respectively. NBC Sunday Night
Football’s audience dropped 10%.
The NFL has some built-in security: The league’s $27.9 billion deal
with CBS, Fox and NBC runs
through 2022. However, its $450
million deal with the NBC and CBS
for its slate of Thursday night
games, which can also be seen on
the NFL Network, ends after this
season, providing additional urgency for a rebound. A one-year
Weather
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50
13
30
36
49
12
22
29
57
59
61
62
63
Stationary
Snow
66
67
68
Showers
Flurries
69
70
71
Today
Tomorrow
Hi Lo W Hi Lo W
67 54 pc 67 54 c
67 48 pc 71 52 s
90 74 pc 88 75 t
88 81 sh 88 80 c
80 67 s
83 67 s
91 76 c
91 77 pc
82 66 s
89 70 s
81 57 s
83 55 s
66 57 pc 64 50 r
89 58 s
91 59 s
93 79 pc 93 78 t
58 43 sh 53 45 pc
68 57 pc 69 56 pc
83 62 pc 76 61 pc
65 50 pc 60 48 c
88 81 c
89 80 pc
66 55 pc 66 52 c
81 64 s
83 67 s
106 77 s 106 81 s
79 64 t
78 62 pc
87 80 r
89 79 t
81 66 pc 82 66 pc
83 72 r
86 74 pc
87 76 c
88 78 t
67 51 s
66 47 pc
94 80 sh 91 79 pc
83 70 c
81 70 sh
64 47 pc 63 44 pc
73 61 c
72 54 pc
58 50 r
66 55 pc
67 48 pc 71 50 pc
11
16
21
43
48
7
18
100+
T-storms
5
15
28
70s
Rain
4
20
E-MOBILITY | By Mark MacLachlan
28 Louis le Grand,
par exemple
29 Fine-tune
6 Plays in the
30 Big pistachio
street
producer
31 Reelection
11 CEO’s degree
seekers
14 Discombobulated
32 Neophyte, in
15 Designer of
Internet gaming
Doha’s Museum
lingo
of Islamic Art
33 Military
16 Middle-earth’s
command center,
Azog, e.g.
for short
17 Harrison mate
35 Like some
larcenies
18 Banana without
a peel?
37 [not my error]
20 Place
39 Storyteller of the
6th century B.C.
22 They’re scored
on a 1 to 5 scale
43 Chum
23 Croquet and
45 Zip along
badminton?
47 Jack’s
27 Say no to
predecessor
Across
1 Crossed one’s
fingers
48 Screen makeup
51 It can drip or
drop
53 Beats Music VIP
54 Show with
booths
55 Salon request
for My Little
Pony?
57 Scholarly sort
59 Unwritten exam
60 Despise
greetings from
the queen?
63 Boot
66 Cheer for a
charge
67 Make ___ in
(reduce
somewhat)
68 First choice
word?
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
56 48 c
58 47 s
Atlanta
76 56 s
79 60 s
Austin
86 57 s
86 60 s
Baltimore
74 54 pc 74 52 s
Boise
93 66 pc 90 63 pc
Boston
76 58 r
73 55 pc
Burlington
70 52 sh 66 50 sh
Charlotte
76 54 s
77 56 s
Chicago
68 54 pc 67 49 pc
Cleveland
67 53 sh 66 52 sh
Dallas
85 64 s
87 65 s
Denver
87 57 s
88 59 pc
Detroit
65 50 sh 65 46 c
Honolulu
88 74 pc 88 75 sh
Houston
85 62 s
86 63 s
Indianapolis
71 53 pc 75 51 pc
Kansas City
76 56 s
82 60 s
Las Vegas
101 78 s
93 73 pc
Little Rock
78 56 s
80 59 s
Los Angeles
85 67 pc 82 66 pc
Miami
93 81 t
93 81 pc
Milwaukee
66 51 pc 64 52 pc
Minneapolis
71 52 pc 70 52 s
Nashville
74 53 s
78 55 s
New Orleans
82 67 s
84 68 s
New York City
74 58 pc 73 56 pc
Oklahoma City
82 60 s
83 62 s
3
17
80s
Ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Omaha
78 56 s
84 62 pc
Orlando
90 76 t
88 75 pc
Philadelphia
74 58 pc 73 56 pc
Phoenix
106 82 s 100 81 pc
Pittsburgh
65 51 pc 64 47 pc
Portland, Maine 73 53 r
72 50 pc
Portland, Ore.
81 62 pc 78 56 pc
Sacramento
79 60 s
85 59 pc
St. Louis
76 57 s
82 58 s
Salt Lake City
94 70 s
91 68 t
San Francisco
74 62 pc 72 60 pc
Santa Fe
83 54 t
84 54 t
Seattle
79 62 pc 75 55 c
Sioux Falls
77 50 s
77 58 pc
Wash., D.C.
74 58 pc 75 57 pc
2
90s
80s
40s
50s
60s
1
14
30s
Montreal
Augusta
A
Hartfordd
Milwaukee
k
Detroit Buffalo
New
ew York
Y k
Ch
Reno 80s
Philadelphia
Philad
h
lphi
es Moines Chicago
Des
Salt
alt Lake
L e City
C
City
Cheyenne Omaha
Cleve
d
Cleveland
h
Pittsburgh
P b h
Pitt
d
p
Indianapolis
Sacramento
Denver
60s
Springfield
Washington
hington
ton D.C.
DC
San
n Francisco
Ch l
Charleston
Topeka
Colo d
C
Colorado
Richmond
h
d
p g
Springs
Kansas St.. Louis
Lou
L
90s Las
Louisville
L
Lou
ill
Vegas
Veg
hit
Wichita
City
City
l igh
h
Raleigh
Nashville
h ill
Los Angeles
A
Ange
Charlotte
Ch l tt
Santa
anta Fe
Memphis
Memphi
p
C
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Columbia
70s
100s Phoenix
Albuquerque
Ph
homa City Little
Oklahoma
L e Rockk
Warm
San Diego
Atlanta
A
T c
Tucson
i h
Birmingham
El Paso
P
Dallas
D
ll
Jack
Jackson
Ft. Worth
Cold
70s
of its challenges. The league and
the networks blamed much 2016’s
audience decline on the oxygensucking presidential election. While
the election may be long over,
President Donald Trump continues
to dominate national attention.
Michael Nathanson, a media analyst, said “the expectations that
the news cycle post-election would
dissipate clearly has not yet come
to fruition.”
The league’s dicier problems
also have not abated.
The controversy over quarterback Colin Kaepernick, whose decision to kneel during the national
anthem to protest racial injustice
sparked boycotts, has lingered, if
not grown. Kaepernick is currently unsigned and groups of
players in multiple NFL cities knelt
during the anthem in the weeks
following the white supremacist
rally in Charlottesville.
This summer, days after the
league’s billion-dollar concussion
settlement with former players
went into effect, a damning new
study in the Journal of the American Medical Association moved the
issue of player health and safety
back to the fore.
More than anything, perhaps,
the league needs to find a new
narrative that will capture casual
fans—“Who Can Beat the Patriots?” has been around for 15
years—and a new generation of
stars to fill the void left by the
Peyton Manning and, eventually,
Tom Brady.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
V
Vancouver
pact with Amazon to stream
Thursday night games also expires
after this year.
This season kicks off Thursday
night with a match-up between the
Super Bowl champion New England Patriots and Kansas City
Chiefs, a division champ last year.
Five of New England’s games are
scheduled for prime-time slots, including a week seven Super Bowl
rematch with the Falcons on a
Sunday night.
The Dallas Cowboys are in
prime slots five times, including a
first-week showdown with the
New York Giants. The Atlanta Falcons and Green Bay Packers, who
met in the last season’s NFC
Championship game, face off in
week two. ESPN’s Monday Night
Football matchups in September
feature the Cowboys, Denver Broncos and New York Giants.
Meanwhile, the perennially awful Cleveland Browns and Jacksonville Jaguars aren’t slotted in
prime time at all.
To keep things moving during
broadcasts, the NFL has standardized halftime at 13 minutes, 30
seconds, rather than allowing it to
fluctuate in certain games and stadiums; introduced a 40-second
play clock after a touchdown and
prior to extra point; and centralized replay review in New York
City. Networks can use what is
known as “double-box advertising,” allowing fans to watch the
field during a commercial.
The NFL can’t manage away all
69 Paris’s Pont ___
Invalides
70 Like many D&D
players
71 Links legend
Sam
Down
1 Orders at the
diner
2 National League
RBI leader in
1934
3 David, for one
4 Chilling
5 Challenge St.
Nick to go down
a chimney?
6 Dribble catcher
7 She was Emma
in 1998’s “The
Avengers”
8 Some smoked
fish
9 Follows strictly
10 Free of
coarseness
11 Working cat
12 Gillian Jacobs’s
“Community”
character
13 Pursues, as a
police tip
19 Polish text, say
21 Beehive, e.g.
23 Klutzy move
24 Primo
25 Alejandro’s eyes
26 Add insult to
injury
34 Perform some
pruning?
36 Item with an
airplane mode
38 Gospel singer
Winans
40 Source of extra
income
41 Creole staple
42 Furtive look
44 Tangy
quencher
46 Additionally
48 System
49 Yoga class
instruction
50 Deliberately
hurts
52 Thanksgiving
dinner VIP
56 Poetic “fowl
whose fiery eyes
now burned into
my bosom’s core”
58 Skater Michelle
61 Wrap up
62 Fairground
enclosure
64 Bourne’s former
employer
65 Tycoon Turner
Previous Puzzle’s Solution
P
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S H I N
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A N EW
V E R
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A15
OPINION
The Immigration Morass
After the Mayflower landed
at Plymouth
Rock in 1620,
ships of people kept coming from EuWONDER
rope. As a
LAND
result of this
By Daniel
uncontrolled
Henninger
influx, the region’s native
tribes voted unanimously to
pass the Immigration Control
Act of 1632. As we know, it
didn’t work.
Fast-forward 354 years and
the tribal council known as
the U.S. Congress passed the
Immigration Reform and Control Act of 1986. That one
didn’t work either.
There must be a lesson in
here somewhere for President
Trump, who tweeted a demand that Congress legislate
a solution for the immigrant
children called Dreamers.
Don’t bet your 401(k) gains on
Congress getting the job
done.
Immigration control has
become modern America’s
version of Prohibition, which
should have proved that some
tides of human behavior are
so strong that no legislation
can shut them down. This is a
truth normally associated
with conservatives, except on
immigration.
A conservative minority,
citing the death of the culture
and rule of law, has turned
immigration into a political
and legislative morass. An incomplete list of Congress’s recent efforts to regulate illegal
immigration includes the 1996
Illegal Immigration Reform
and Immigration Responsibility Act, the 2002 Enhanced
Security and Visa Reform Act,
the 2002 Homeland Security
Act, the 2004 Intelligence Reform and Prevention Act and
the 2005 Real ID Act.
Until the late 19th century,
the U.S. had virtually no controls on immigration. Still, the
human animals resented incursions into their turf. Ethnic
gangs slugged it out on city
streets. You will be fired today
if you say or write the slurs
used then for Italians, Jews,
Chinese, Poles, Hungarians,
Slovaks, Irish, blacks or Germans. But somehow America
boomed as immigrants flowed
in from all over the world.
During World War II, with
so many men away fighting
the war, the nation’s agriculture industry needed workers
to get produce from the fields
to market. Congress enacted
the Bracero Program, which
created temporary work permits mainly for Mexicans—in
effect, a guest-worker program. President Lyndon Johnson ended the program in
1965, which is the last time
the U.S. had a system that allowed market demand to decide how many foreigners the
economy needed.
Immigration—legal or illegal—is propelled everywhere
almost entirely by economic
forces as strong and inexorable as the currents of the sea.
In the 1980s, two things happened simultaneously to create the current obsession with
immigrants: The Latin American debt crisis hammered the
region’s economies, most notably Mexico’s; and Ronald
Reagan’s supply-side economics—tax cuts and deregulation—created a boom in the
U.S., which extended through
the Clinton presidency.
Two decades of U.S. economic vitality pulled workers
out of floundering Latin
American economies and into
jobs here in agriculture, construction, fisheries, textiles,
restaurants and hotels.
This issue has turned
into a deadweight
loss by the day for
the Republican Party.
This
great
migration
peaked and began to fall
around 2005 as Mexico’s
economy stabilized. In other
words, the only thing that will
ever reduce immigration
flows is jobs-producing economic policies in Latin and
South America, which should
be a self-interested U.S. policy
priority, but isn’t. Mr. Trump’s
threat to terminate the North
American Free Trade Agreement would re-create the regional economic imbalances
of the 1980s and guarantee a
second great migration of illegal immigrants that no wall
will stop.
The 800,000 so-called
Dreamers are essentially bystanders to Congress’s refusal
since 1986 to allow 11 million
stranded illegal immigrants to
leave the U.S. when their jobs
are over and come back if
their help is needed.
Attorney General Jeff Sessions, announcing Tuesday
that the Deferred Action for
Childhood Arrivals program
was being rescinded, said it
had “denied jobs to hundreds of thousands of Americans.”
I’m open to proof that
American workers are willing
to pack fish in Massachusetts, clean bathrooms at a
Motel 6 in Georgia or tar
roofs during the summer in
Texas—at any wage. But I
don’t believe it. I don’t believe Mr. Sessions and his allies would support a guestworker program, such as the
state-run visa program proposed by Wisconsin’s Sen.
Ron Johnson, to normalize
the in-and-out flow of foreign
workers and create an immigration law with any hope of
compliance. They just want
them out.
A Wall Street Journal/NBC
News poll this week had 64%
of respondents agreeing that
“immigration strengthens the
U.S.” Even a plurality of rural
voters agreed. Immigration is
becoming a deadweight loss
by the day for the Republican
Party and conservative politics.
Most likely, the House’s
anti-immigrant members will
make Republican-led DACA
reform impossible. What an
astonishing irony it will be to
see people seeking a life in
the private sector driven into
the ranks of the public-sector
Democrats.
Write henninger@wsj.com.
Obama’s Deplorable DACA Decision
By Karl Rove
I
believe that “Dreamers”—
foreign-born men and
women, age 15 to 36,
brought here illegally when
they were children—should be
allowed to stay in America, the
only country most of them remember. That’s why I find
President Obama’s recent attack on President Trump so
deplorable.
Mr. Trump announced Tuesday that in six months he would
end Deferred Action for Childhood Arrivals, the program that
temporarily shelters Dreamers
from deportation. Shortly afterward Mr. Obama called the decision “cruel,” “self-defeating”
and “contrary to our spirit.”
This needlessly inflamed the
situation, making a solution
harder to achieve. Besides, Mr.
Obama knows that federal
courts appeared ready to strike
down DACA on the ground that
suspending immigration laws
for a whole class of people is
unconstitutional.
Take it from Mr. Obama
himself. Before establishing
DACA in 2012, Mr. Obama said
on at least 22 occasions that
he lacked the power to act unilaterally. In July 2010 he declared that simply ignoring the
laws and ending deportation
“would be both unwise and unfair.” The next April he said: “I
know some here wish that I
could just bypass Congress and
change the law myself. But
that’s not how democracy
works.” As late as September
2011, Mr. Obama was saying
“this notion that somehow I
can just change the laws unilaterally is just not true.”
After President Trump’s announcement, Mr. Obama could
have been constructive. He
could have said that he disagreed with ending DACA but
understood the legal concerns.
Mr. Obama then could have encouraged lawmakers to pass
legislation to settle the issue,
playing off Mr. Trump’s comment that “hopefully now Congress will be able to help.” Instead Mr. Obama decided to
scorch his successor.
His attack on Trump
needlessly inflames
the situation, making
it worse for Dreamers.
Comity is essential to resolving this dilemma. A standalone measure for Dreamers
can’t pass this Congress. Neither can a comprehensive immigration-reform bill. What
might pass is a bill that makes
trade-offs to satisfy immigration advocates and restrictionists alike. But with other legislative
deadlines
rapidly
approaching, it might be
months before Congress can
take up immigration.
Funds for disaster relief
need to be replenished following Hurricane Harvey. The Federal Emergency Management
Agency will run out of money
as soon as Friday, two days before Hurricane Irma is expected to hit Florida.
To avoid a government shutdown, a federal budget—covering at least part of the coming
fiscal year—must be passed by
Oct. 1. That’s also the deadline
for reauthorizing the Children’s
Health Insurance Program, the
Federal Aviation Administration and federal flood insurance. Then the debt ceiling
must be raised by mid-October.
Oh, and Congress has yet to
pass a budget resolution.
The first three reauthorizations can be bipartisan. Mr.
Trump caved to demands by
House Minority Leader Nancy
Pelosi and Senate Minority
Leader Chuck Schumer to combine Harvey relief with just a
three-month debt ceiling increase. Some Republicans will
grumble, preferring instead to
link the debt ceiling to further
spending restraint, and GOP
congressional leaders preferred an increase that would
last through the midterm elections. But this at least pressures those Republicans and
Democrats inclined to vote irresponsibly against any debtceiling increase.
Most Democrats will oppose
whatever budget resolution
Republicans offer, since its
passage would create a procedural opening for tax reform to
pass the Senate with only 51
votes under the reconciliation
process. Even if this allows
Majority Leader Mitch McConnell to dodge a filibuster on
tax reform, he still must limit
defections to only two of the
GOP’s 52 senators.
Even then, tax reform isn’t a
lock to pass the House. After
demanding regular order for
months, the Freedom Caucus
now threatens to bypass the
Ways and Means Committee by
offering its own tax package.
Such conflicts inside the House
caucus could prevent Republican legislative victories.
Some Democrats might vote
to fund the government—but
not if the legislation includes
money for Mr. Trump’s border
wall. Yet a Republican-only
spending bill could fail in the
House because of Freedom
Caucus defections. Or it might
fall short in the Senate if more
than a pair of GOP senators
walk away.
Congress has a lot it must
do in a short time, and more to
deal with soon thereafter. Success will require lawmakers
and their constituents to be patient. It doesn’t help the country to raise passions as Mr.
Obama’s comments did.
In the end, Republicans have
the most to lose, which may explain why Mr. Obama chose to
speak up. Democrats understand voters will blame the GOP
if Congress fails to act, and
they know Republican leaders
will be hard-pressed to keep
their fractious caucuses together. Republicans need to understand they must cooperate,
compromise and move forward
together or risk losing their
congressional majority.
F
or a conservative allergic
to political correctness,
there couldn’t be a worse
time to make the case for Harriet Tubman on the $20 bill.
Recall that the Obama administration backed a new note to
replace Andrew Jackson’s visage with Tubman’s. Asked
about the idea last month,
Treasury Secretary Steven
Mnuchin was lukewarm. “People have been on the bills for a
long period of time,” he said.
“Right now, we’ve got a lot
more important issues to focus
on.”
Leftists are already waging
total war against the villains of
history. They won’t be happy
until babies are no longer
named David after the Israelite
king—who, in addition to killing Goliath, also committed
adultery and second-degree
murder. But one hates to make
the case of Jackson vs. Tubman
about political correctness, so
let’s make it partisan:
Andrew Jackson? It is hard
to find a more colorful American life in any age. A survivor of
battles, duels and an assassination attempt, he disdained Congress and the courts, much like
Mr. Trump and Mr. Obama. He
beat the British on the field in a
war that was basically a draw.
The seventh president
disliked paper money.
Put him on Bitcoin.
He held slaves and created the
Trail of Tears. Like most antiabolitionists, he was a Democrat, although unlike them he
invented the party. Jackson was
a foe of the Electoral College,
which has served Republicans
so well recently.
Harriet Tubman? She was
one of the most self-reliant and
heroic women in American history. Born in 1820 into slavery
in Maryland, she went on to
work for the Union Army, first
as a cook and nurse, then as a
scout and spy. She carried a
gun while raiding plantations,
and were she around today you
can bet she’d be a member of
the National Rifle Association.
She was a Republican who fled
from the Democratic slave
state of her birth.
Jackson’s current image on
the $20 bill is rather dramatic,
showing his flowing mane.
Tubman, who stood just above
5 feet, doesn’t have the same
physical glamour. She was
beaten from a young age and
was hit in the head by a metal
weight thrown at another
slave—an injury that caused
her seizures and headaches
her entire life. In a country obsessed with superficial beauty,
what a fabulous respite to feature someone whose notoriety
is based on her accomplishments and character.
I have been carrying a faux
Harriet Tubman $20 bill in my
wallet for the past two years
while awaiting the real deal. I
printed a bunch of them at
Why We Need
Fewer Lawyers
Rebooting Justice
By Benjamin H. Barton and Stephanos Bibas
(Encounter, 231 pages, $23.99)
‘T
he first thing we do, let’s kill all the lawyers.”
Proposed by Dick the Butcher, a nefarious rebel in
“Henry VI, Part 2,” the line often gets a laugh. But it
also makes a serious point: Fewer lawyers would make it
easier to overthrow the king and install a new regime.
Lawyers, Shakespeare implies, are the guarantors of justice.
Or are they? According to Benjamin Barton and Stephanos
Bibas, law professors at the University of Tennessee and the
University of Pennsylvania, respectively, the answer is “not
necessarily.” In their brief and accessible “Rebooting
Justice,” Messrs. Barton and Bibas observe that, when it
comes to securing justice in an efficient and affordable
fashion, lawyers can in fact be the primary obstacle.
As the authors note, the legal profession presents a “paradox.” “America has more lawyers than any country in the
world,” they write, “and law schools are graduating more
new lawyers than there are
jobs. Yet legal education and
legal advice are horrifically
expensive.” Even basic legal
services at small or mid-size
firms may cost more than
$200 an hour, placing meaningful legal representation beyond
the reach of many Americans.
Why are legal services so
expensive if there is an ample
supply of lawyers? The costs of
legal education and guildlike
restrictions on entry to the profession play a role. More significant, however, is the increasing
complexity of legal processes, particularly those that are contested. Few legal matters can be handled quickly; given hourly rates, this means
that few can be handled cheaply. The result, as the authors
note, is that many legal issues “are too complicated to handle without a lawyer but too expensive to handle with one.”
Some indigent clients can find relief from legal-aid
programs, law-school clinics and pro bono representation,
but the reach of these resources is limited. Messrs. Barton
and Bibas report that funding for legal aid is down 63% from
its high in the 1980s. They also observe that the qualification
criteria for this support are stringent in the extreme. In
Tennessee, for example, the income cap to qualify for local
legal aid was so low that even a full-time worker earning the
$7.25-an-hour federal minimum wage would make too much
money to qualify. Given that legal representation for a basic
child-custody or property dispute can easily cost thousands
of dollars, many low- and middle-income families are left to
fend for themselves.
Confronting the system “pro se”—choosing to represent
oneself—is, as Messrs. Barton and Bibas note, on the rise.
Unfortunately, while some pro se litigants may achieve their
goals, the overwhelming majority of them are at a severe
disadvantage. During courtroom proceedings, judges report,
pro se litigants often fail to raise objections or properly
introduce evidence. Procedural rules and requirements
demand an experienced guide, all the more so when there
are lawyers on the other side.
Like nurse practitioners in medicine,
paralegals and notaries can cut costs in the
legal profession by providing basic services.
home to give as storytelling
props during our Passover Seder. The point was to highlight, with great pride, the various ways the Passover story
has been culturally expropriated by everything from the
American founding and the
Civil War to the 1960s civilrights marchers and the Russian refusenik movement.
Few are a better fit for
Passover than Harriet Tubman,
whose nickname in the Underground Railroad was Moses.
She alone guided several hundred slaves to freedom. What
better emblem for the $20 bill
than a woman who threw off
the yoke of oppression and
took it upon herself to fight for
others?
With his hatred of a national bank and disdain for paper money, Jackson would be
the perfect icon for the virtual
currency Bitcoin. Tubman deserves to be on the $20 bill.
One commonly proposed solution to these problems is
simply to expand publicly funded representation—in other
words, to load the system with more lawyers. According to
Messrs. Barton and Bibas, this approach is neither probable
nor preferable. State legislatures already resist providing
public defenders the resources they need; they’re not about
to open their coffers for divorce lawyers. And even if
resources were available to subsidize lawyers for civil
matters, it’s not clear that this would be an improvement.
Increasing the number of lawyers would increase complexity
and costs, with no guarantee of improved outcomes.
A large portion of “Rebooting Justice” is devoted to the
authors’ ideas for systemic changes aimed at reducing the
reliance on lawyers. They note that in medicine, for example,
paraprofessionals like nurse practitioners and physician
assistants increasingly provide basic services at lower costs.
There’s no reason that paralegals, notaries, social workers and
others with relevant training could not do the same in law.
Messrs. Barton and Bibas are also hopeful that evolving
technologies can fill many legal-service needs. Web-based
databases have expanded public access to once-arcane legal
rules and judgments, and companies like LegalZoom offer
inexpensive, download-able forms to cover basic legal matters,
like living wills or articles of incorporation. One promising
technological innovation, the authors note, is computerassisted mediation of the sort used by PayPal and eBay. When
conflicts arise between buyers and sellers, these companies
employ automated online dispute resolution (ODR) systems
that algorithmically identify areas of agreement and propose
solutions. While far from perfect, ODR is able to resolve
roughly 90% of reported disputes, reducing costs and allowing
human facilitators to focus on the most difficult cases. Applied
to the legal system, ODR could address many disputeresolution needs at a fraction of the cost of hiring lawyers.
As exciting as technology is, Messrs. Barton and Bibas
recognize that it will not be enough to fix what ails our legal
system. Their more radical suggestion is to restructure the
system so that many processes are specifically designed to
omit lawyers. For example, instead of trying to fund lawyers
for litigants who might otherwise represent themselves,
legal processes could be made more friendly to pro se
representation.
The biggest obstacle to such reforms could well come
from the legal profession itself. Legal practice remains
regulated at the state level, and state bar authorities are
good at squelching competition. They would almost certainly
resist reforms that would lower barriers to entering the
legal market or make lawyers’ services less necessary.
How exactly to get around this obstacle is just one of the
important areas inadequately addressed in “Rebooting Justice.”
Nor are all the answers that Messrs. Barton and Bibas provide
convincing. They are, however, asking the right questions. And
regardless of whether one accepts all of its recommendations,
“Rebooting Justice” does jump-start a much-needed
conversation about the future of the practice of law.
Mr. Weiss is a carpet salesman in Pittsburgh.
Mr. Adler is a professor of law at the Case Western
Reserve University School of Law.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
Tubman Beats Jackson on the $20 Bill
By Lou Weiss
BOOKSHELF | By Jonathan H. Adler
THE WALL STREET JOURNAL.
A16 | Thursday, September 7, 2017
OPINION
T
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Pelosi-Schumer-Trump Congress
U.S. Afghanistan Policy Faces Many Variables
he American people may think they Ryan and Mitch McConnell, but is he trying to
elected a Republican government last elect Speaker Pelosi? As Nebraska Sen. Ben Sasse
November, but it’s increasingly hard to put it in a press release: “The Pelosi-Schumertell. The latest evidence came
Trump deal is bad.”
The Republican gang
Wednesday when President
Part of the problem is that
Trump accepted a Democratic
Congressional
Republicans
that can’t even shoot
offer to raise the federal debt
once again helped put themat each other straight. selves in this box. Congress
ceiling for a mere three months
in return for $8 billion for Hurcan’t let the U.S. default on its
ricane Harvey relief.
debt, so the majority party has
“We had a very good meeting with [Demo- to raise the debt ceiling whether it likes it or not.
cratic leaders] Nancy Pelosi and Chuck The smart GOP play was to attach a long-term
Schumer. We agreed to a three-month extension debt increase to some other must-pass legislaon debt ceiling, ” Mr. Trump said Wednesday tion and get it over with. One and done.
aboard Air Force One on his way to a rally in
In familiar self-defeating fashion, the usual
North Dakota.
House suspects refused, insisting that the debt
“So we have an extension, which will go out ceiling get a stand-alone vote. House Freedom
to December 15. That will include the debt ceil- Caucus Chairman Mark Meadows and Republiing, that will include the CRs [to fund the gov- can Study Committee leader Mark Walker also
ernment] and it will include Harvey—the claim to be miffed that the debt-limit increase
amount of money to be determined, but it will won’t include spending cuts.
include—because everyone is in favor obviously
Yet most of these same Members won’t vote
of taking care of that situation,” he added. “So to raise the borrowing limit no matter what
we all very much agree.”
they’re offered. They find the actual work of
Ah, dogs and cats living together.
governance beneath their dignity. Their mutiny
What really happened is that Mr. Trump means that Mr. Ryan lacked a GOP majority to
overruled his Treasury Secretary and GOP lead- raise the debt ceiling, which meant he had to
ers who wanted a debt-ceiling increase to run go hat in hand to Mrs. Pelosi for Democratic
past the 2018 election. Mr. Trump instead gave votes. She and Mr. Schumer came up with their
Democrats exactly what they want, which is to three-month gambit, which Mr. Ryan immediset up an even steeper fiscal cliff on debt and ately labeled “ridiculous” and “unworkable,”
spending in December when Republicans hope only to be sandbagged by Mr. Trump.
to be focusing on tax reform.
This may all sound like inside baseball, but
Republicans will now have to take at least it’s politically relevant because it illustrates the
two difficult votes to raise the debt ceiling, Republican inability to govern. The Senate
while Democratic leverage will increase when killed health-care reform. The House can’t pass
the day of reckoning comes. The chances of a a budget resolution that is essential for tax regovernment shutdown in December have now form. Mr. Trump is sore that Republican leaders
risen sharply, or at least they have if Mr. Trump failed on health care, so he now undermines
wants to pass something with more than a few their fiscal strategy and all but hands the gavels
Republican votes.
to Democrats. Readers might take note and hold
Mr. Trump may not like GOP leaders Paul off on spending that tax cut.
P
Teen-Pregnancy Subsidy Panic
rogressives defend some government
Senate Democrats fired off a letter in July
programs as so inexpensive they aren’t to HHS Secretary Tom Price condemning the
worth cutting (the National Endowment “short-sighted” cut that “puts at risk the health
for the Arts) and the rest as
and well-being of women and
The feds don’t need to our most vulnerable youth.”
too large and important to
touch (Medicaid). Witness the spend $200 million on a Remember this program has
meltdown over the Trump Adexisted for a mere seven
failed sex-ed program. years. HHS’s Office of Adolesministration’s decision to redeploy funding for teen-pregcent Health—there is such a
nancy prevention.
thing—allowed grantees anEarlier this summer the Health and Human other year to wrap up projects.
Services Department decided to wind down the
The letter notes that the rate of teen pregObama Administration’s Teen Pregnancy Pre- nancy has dropped precipitously in recent devention Program, which offers grants to locali- cades, and the birth rate among 15- to 19-yearties and organizations, ostensibly to import olds dipped to around 22 per 1,000 women in
proven methods of preventing teen pregnancy 2015, down from roughly 40 in 2007. Academics
or experiment with fresh approaches, mostly can debate the reasons for this good news, but
through education about birth control. HHS everyone can agree no credit is owed to these
certifies “evidence-based” curricula for teens HHS programs, which reach fewer than 1% of
or underwrites new ideas. The program has American teenagers. Zeroing out the program
handed out more than $800 million since its two years before the grants expire saves about
start in 2010.
$200 million.
So how’s that working out? The Obama AdThe Senate hasn’t confirmed the assistant
ministration last year evaluated 18 programs health secretary who would oversee such Title
that replicated allegedly tested approaches: X grants, and President Trump’s nominee is
Three yielded mixed results and 11 had no Texas pediatrician Brett Giroir. Sen. Patty Murray
lasting effect on behavior. Three had a nega- (D., Wa.) asked Mr. Giroir about the teen-pregtive effect, meaning they increased the likeli- nancy funding in his confirmation hearings. She
hood of teens engaging in sex or becoming later said she’s “unconvinced” he would fight the
pregnant, which takes some doing in the cur- Trump Administration’s “ideological attacks on
rent culture.
women,” as if no one of good faith can disagree
A single curriculum showed positive results, about the benefit of federal subsidies to teach 11but a second study then showed no discernible and 12-year-olds about sex when local sex-ed
effect. Supporters insist results will improve courses can already do the same.
over time, and it’s hard to imagine they could
Mr. Giroir deserves a prompt confirmation,
get worse. Yet the next round of grants include and HHS deserves credit for allocating this pubsome of the same curricula.
lic money to more productive uses.
A
Trump’s Malaysia Swamp
visit to the White House is a diplomatic chose to ignore the prosecution of Mr. Anwar
plum that world leaders covet. So why when he made the first visit by a U.S. President
is President Trump bestowing this in 60 years to Kuala Lumpur in April 2014. Eight
honor on Malaysian Prime
months later, he invited Mr.
Did Tillerson tell his
Minister Najib Razak, who
Najib for a showy round of golf
jailed an opposition leader and
in Hawaii.
boss
he’s
repeating
is a suspect in a corruption
But that precedent is not
an Obama mistake?
scandal that spans the globe?
consistent with Mr. Trump’s
Mr. Najib will visit the
promise to “drain the swamp”
White House next week for a
of Washington politics. Two
presidential photo-op that could help him win months after that golf round Mr. Anwar was
the next general election and imperil Malaysia’s jailed again. And shortly after Mr. Obama made
democracy. Yet it isn’t clear that Mr. Trump and nice with Mr. Najib, Frank White Jr., who served
Secretary of State Rex Tillerson are getting any- as co-chair of President Obama’s re-election comthing in return for associating with a leader mittee before becoming a lobbyist for Malaysia,
their own Justice Department is investigating. sold a stake in a 1MDB-linked solar technology
This could set them up for a repeat of the way firm back to the fund for $69 million.
Mr. Najib humiliated Barack Obama.
The benefits of communing with Mr. Najib
Mr. Najib oversaw the creation of 1MDB, a aren’t obvious. Perhaps Mr. Tillerson thinks
state-owned fund that was supposed to attract Malaysia will help tighten the financial screws
foreign investment. The U.S. Justice Depart- on North Korea, which has long used the counment alleges that the Prime Minister and his as- try as a business hub. But Mr. Najib isn’t likely
sociates looted the fund of $4.5 billion. The DOJ to stop his strategic drift toward China. Keeping
has filed civil lawsuits to freeze more than $1.6 1MDB afloat will require cash infusions, and
billion of assets allegedly stolen from the fund. China, eager to help fellow authoritarians, can
Five other nations are also investigating, and deploy its One Belt, One Road slush fund. Mr.
Singapore has convicted five financiers of Najib can then buy off the opposition and conmoney laundering and fraud. Mr. Najib hasn’t solidate power.
been charged and denies wrongdoing, and MaIf Malaysia slides into dictatorship, it will allaysia’s Attorney General cleared him.
most surely fall into Beijing’s orbit. The U.S. reUnder Mr. Najib, Malaysian authorities also lationship depends on Malaysia remaining a viconducted a six-year prosecution against oppo- able democracy. That’s why helping Mr. Najib
sition leader and former Deputy Prime Minister at this critical moment is a mistake.
Anwar Ibrahim on dubious charges of sodomy,
Mr. Trump will be told that it’s too late to
for which he was sentenced to five years in cancel the meeting, but the U.S. can find a diploprison. That legal farce helped Mr. Najib’s party matic excuse in Hurricanes Harvey and Irma or
win a narrow victory in the 2013 election.
congressional battles. Any embarrassment is
So how should the U.S. engage a troubled better than giving a scandal-tainted leader a
Malaysia? Mr. Obama cozied up to Mr. Najib and White House photo-op.
Your balanced editorial “Trump’s
Afghan Commitment” (Aug. 23)
rightly points out that Mr. Trump’s
most significant shift is the challenge
to Pakistan. As many observers have
stated, Pakistan is unlikely to modify
its Afghan policy under threats, especially since it now has strong support
from the second most powerful country in the world—China.
For Pakistan, there is an almost existential issue, namely the boundary
with Afghanistan. The boundary in
the form of the Durand Line was negotiated (“imposed” according to the
Afghans) by the British in 1893 and
was inherited by Pakistan in 1947. The
line has never been recognized by Afghanistan, which claims the whole of
Pakistan’s Khyber Pakhtuntwa province because its population is Pashtun, the largest ethnic group in Afghanistan. Afghanistan was the only
country to oppose Pakistan’s U.N.
membership in 1947. Even the Taliban,
a Pakistani creation dependent on
Pakistan for military and other vital
support, has refused to recognize the
line. According to Ahmed Rashid in
his book “Descent Into Chaos,” the
then-president of Afghanistan, Mohammed Najibullah, offered to recognize the Durand Line during the U.N.led negotiations in the late 1980s, but
Pakistan refused the offer. One possible reason for that is Pakistan would
prefer to leave the border undefined
so it couldn’t be accused of violating
an international border.
A lasting solution to the Afghan
crisis won’t be possible unless the
boundary issue is settled to the satisfaction of both sides.
CHINMAYA GHAREKHAN
Scarsdale, N.Y.
Mr. Gharekhan is a former ambassador of India to the U.N.
The U.S. has virtually no economic
or financial leverage over Pakistan.
There are only 23 U.S. companies that
are full members of the U.S.-Pakistan
Business Council, which is virtually
dormant. I have served in Washington
the past six years as an honorary investment counselor for the Pakistan
Board of Investment, but in that time
there has been literally no U.S. investment in Pakistan and not a single Pakistani or U.S. trade event, program or
delegation either way, to or from Pakistan. China is now the overwhelming
economic lifeline for Pakistan. And
frankly, few if any U.S. firms have or
will choose to engage in the Pakistani
rather than the five-times-larger India
market.
CHARLES KESTENBAUM
Senior foreign service officer (Ret.)
Vienna, Va.
The president might learn something from another leader who got
mired in “the graveyard of empires.”
At a Nov. 13, 1986 Politburo meeting,
Mikhail Gorbachev said it is time to
go: “We have been fighting in Afghanistan for already six years. If the approach is not changed, we will continue to fight for another 20-30 years.
. . . What, are we going to fight endlessly as a testimony that our troops
are not able to deal with the situation? We need to finish this process
as soon as possible.” Moscow got out
of its hole and never looked back.
We should leave it to the neighboring countries—Pakistan, Iran, China
and Russia—which have a stake in
cauterizing the malignant ISIS and
other terrorist cancers that would
emerge in a collapsed Afghanistan and
threaten their security. They should
fashion a regional containment policy
as the U.S., offshore, allocates air
power and special forces to knock out
terrorist cells as they emerge. Anything more risks our staying in the
hole we’ve been in for 16 years. It is
time to stop digging.
BENNETT RAMBERG
Los Angeles
The Trouble With ‘Off the Shelf’ Hearing Aids
Regarding your editorial “Hearing
Aid Breakthrough” (Aug. 26): As a
board certified ear, nose and throat
doctor, I share some of your enthusiasm about increasing competition and
decreasing cost in the hearing aid
market. Many patients of mine have
struggled with the costs of hearing
aids. I would temper the argument
though and disagree with a few
points. We always recommend a medical evaluation before wearing hearing
aids, as there are many treatable
forms of hearing loss. Also, there are
conditions where hearing loss may be
a symptom of something else. While
this isn’t true for a majority of patients, direct purchase of hearing aids
could delay a diagnosis.
Another concern I have is that many
patients will buy an “off the shelf”
hearing aid at a deep discount, but
without the proper fitting and programming they will find it unusable
and end up buying another (higher
quality) hearing aid in the end. I already see this with patients who buy
discounted hearing aids at big-box retailers such as Sam’s Club and Costco.
Finally, I would disagree that hearing
aids have lagged behind other electronic innovations. The current iteration of hearing aids are Bluetooth-enabled, Wi-Fi-enabled, communicate
with your smartphone and are packed
in a device the size of a postage stamp.
JASON ACEVEDO, M.D.
Abilene, Texas
One can see how far we have slid
as a nation when we are thankful for
the government giving us permission
to buy a hearing aid. And what a pitiful people we have become to put up
with such nonsense. I hope we are on
a roll and can continue with other
strides toward freedom and personal
responsibility.
An occasional Valium at night does
wonders for my back pain and yet I
have to go beg a doctor for every 10
doses. This is because regulators
somehow have superior judgment?
How are hearing aids like dope? It
is not the substance, it is the hijacking
of our ability to reason by a regulatory state that has turned us into a
nation of idiots.
FRITZ GROSZKRUGER
Dumont, Iowa
Democrats’ Race Ploy Is a Poor Political Plan
I think that Shelby Steele’s diagnosis of the left is pretty accurate
(“Why the Left Can’t Let Go of Racism,” op-ed, Aug. 28). There really
isn’t a better explanation for liberals
hurrying to play the race card every
time they find themselves losing an
argument or an election.
What’s worse than the party of tax
and spend? It’s the party of hate and
racism. Liberals can’t shake the label
of tax and spend because it’s true, so
they attempt to label conservatives
as hateful and racist. There are too
many blacks and Hispanics who are
conservatives for that to work on
anyone except liberals. How is wanting an orderly immigration system
hateful? How is wanting to provide
jobs for all Americans hateful? How
is wanting to provide for the defense
of our country hateful? How is wanting all Americans to have the opportunity to build a life for themselves
hateful?
The Democratic Party better find
something else besides gay rights,
abortion and race-baiting to run on
or it is going to lose more Senate
seats in 2018. The anti-Trump Republicans better get moving on solving
health care, tax cuts, immigration and
infrastructure or they will be looking
for new jobs in 2018.
TERRY LARSON
Seffner, Fla.
moral bullying and stigmatizing that
the left heaps on us dirty masses on a
daily basis: “race fatigue.” It’s possible it put Donald Trump in the White
House after Hillary Clinton raised
broad-brush smearing to new heights
by painting Trump supporters as deplorable racists, among other things.
Although most of us understand that
not identifying as members of the liberal victim class incurs risks of being
called “racist,” most of us brush off
these vile accusations.
THOMAS O’HARE
Charlestown, R.I.
Shelby Steele’s article would have
been much more interesting had it
been entitled: “Why America Can’t
Let Go of Racism.”
TIMOTHY KAMINSKI
St. Louis
Pepper ...
And Salt
THE WALL STREET JOURNAL
Mr. Steele elegantly describes what
many people feel about the constant
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.
“Delivered by a stork? Don’t be silly,
sweetie. A drone brought you.”
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | A17
OPINION
By George Melloan
T
he political commentariat
has unleashed a torrent of
words since the 2016 election analyzing what befell
the Democrats. Donald
Trump won because of his TV fame;
he tweeted his way into the White
House; the Russians did it; etc.
Why not spend a few more
words on the current demeanor of
the Democratic Party? It was losing
badly in elections at all levels as
early as 2010, well before Mr.
Trump came along. Despite its
deeply flawed candidate, Hillary of
the indiscreet emails, it won the
popular vote for the presidency
and therefore still has to be taken
seriously.
The party’s environmental
extremism puts it at odds
with working people whose
aspiration is prosperity.
Its members and backers, particularly at influential media organizations like the New York Times, the
Washington Post and MSNBC, have
been heaping abuse on the new
president, suggesting Mr. Trump’s
victory was illegitimate. When they
hurl the words “fascist” and “plutocrat” wildly, their anger begins to
sound pathological.
We know that the Democrats have
been, since the New Deal, the party
of government. Some of the outrage
at Mr. Trump comes from federal
bureaucrats who fear for their jobs.
That’s understandable enough—simple economic determinism, as the
Marxists might say.
But recent history reveals something else that may help explain the
Democratic
Party’s
problems.
Whereas it became the party of labor in the late 1930s and then
snatched the civil-rights banner out
of Republican hands in the 1960s, of
late it has veered in a direction that
does not particularly suit the interests of either working people or
people of color with ambitions to
climb the economic ladder. It has
become, in essence, America’s Green
Party, eclipsing the tiny party that
bears that name.
Underlying the Green philosophy
is a distrust of economic growth.
That’s what distinguishes Greens
from garden-variety environmentalists who simply want a safe and
clean environment, as everyone
does. Although the Greens operate
under the flag of environmentalism,
they have greater ambitions. They
are a modern manifestation of a
back-to-nature movement, feeding
on the guilt and anxiety that accompany scientific advance.
Greens adopted the Democratic
Party precisely because it is the
party of government. They see government power as the way to suppress the animal spirits of private
enterprise that produce innovation
and new wealth.
Under Green influence, Democratic lawmakers, when they controlled Congress, designated large
tracts of the American West as new
“wilderness areas.” They fostered
the Endangered Species Act, which
has been an effective barrier to industrial or agricultural development
DREW ANGERER/GETTY IMAGES
Democrats Have the Green Party Blues
Protesting a planned Scott Pruitt speech at New York’s Harvard Club, June 20.
in more than a few states, often on
specious claims of endangerment.
They vastly expanded the amount of
private property officially designated
as “wetlands,” thus restricting its
use. Other examples abound.
And of course the Democrats,
with Al Gore as their Joan of Arc,
took up arms against fossil fuels
with the fantastic claim that burning them endangers the planet. If
that isn’t a call for a return to the
dark ages—literally—what is?
Without oil, coal and gas to run the
power plants that supply electricity
for lights, household appliances
and factories, the economy would
shut down. In Australia, Green attacks on coal have in fact caused
blackouts.
To demonstrate how Green the
Democrats have become, one need
go no further than President
Obama’s statement last year that
climate change (the new code word
for global warming) is the nation’s
No. 1 problem. He also claimed 97%
of scientists agree that “climate
change is real, man-made and dangerous.” But actual scientists don’t
agree 97% on much of anything.
The modern Green movement got
traction from the 1968 founding of
the Club of Rome at that city’s Accademia dei Lincei. Describing itself as
a global think tank concerned with
the “future of humanity,” it produced a global best seller called
“The Limits to Growth,” predicting,
inaccurately, that at the then-current
rate of development mankind would
soon exhaust the Earth’s natural resources. Maurice Strong, a self-described socialist and former oil tycoon, imported the Club of Rome’s
philosophy into the United Nations,
launching the U.N.’s propagation of
the global warming theory.
The Democrats still claim to be
the party of labor, but their attack
on the energy sources that keep the
economy running can hardly be described as pro-worker. Government
employee unions still adhere to the
Democrats, but the leaders of industrial unions, who now represent
only a single-digit percentage of the
workforce, are belatedly beginning
to have second thoughts.
Working people, fed up with the
diktats of the Greens who infest
their farms and factories, were a
major factor in the election of Mr.
Trump. The Greens, concentrated in
coastal blue states, were shocked
that anyone would question their
motives. But to many Americans it
looked like the Greens were disdainful of the aspirations of working
people to live the good life—and
there may have been some truth to
that. When Mrs. Clinton described
them as “deplorables,” that was the
last straw.
If the Democrats want to make a
comeback, they should think about
purging their ranks of these zealots. Greens want to deprive the
economy of its basic energy
sources, and they have little regard
for the consequences, mainly because they don’t think they will be
among the victims. It might take
some doing, but ditching the
Greens is, if you’ll excuse the expression, Democrats’ best path out
of the wilderness.
Mr. Melloan is a former deputy
editor of the Journal editorial page
and author of “Free People, Free
Markets: How the Wall Street Journal Opinion Pages Shaped America”
(Encounter, 2017).
Why Corporate Tax Reform Is a Bipartisan Cause
By Laura Tyson
C
orporate tax reform is one of the
few issues that attract bipartisan support in Washington.
Lawmakers from both sides agree that
the current system is deeply flawed.
Because the U.S. hasn’t updated its
tax code in 31 years, Congress has a
once-in-a-generation opportunity to
level the playing field for American
businesses and workers.
When U.S. multinationals sell products abroad, it spurs production, employment and income at home. Facing
the highest corporate tax rate in the
developed world—38.9% on average,
including state taxes—and a system of
taxation that follows them wherever
they go, U.S. companies are at a disadvantage in global markets. This discourages investment, innovation and
job creation back home.
In 2013, U.S.-based multinationals
directly employed 23 million Americans and supported another 53 million
American jobs through their domestic
supply chains and employees’ spending. To serve global markets, U.S. multinationals locate significant shares of
their world-wide economic activities
in the U.S.—more than two-thirds of
their value added, their capital expenditures, and their research and development, and just under two-thirds of
their employment in 2014.
U.S. multinationals face increasing
global competition from businesses
in developed and emerging-market
economies. Between 2000 and 2016,
the number of U.S.-headquartered
companies in the Forbes 500 declined
more than 25%. The outdated U.S.
corporate tax system was partly to
blame.
The U.S. corporate tax rate was
among the lowest among developed
countries after the 1986 tax reform.
It is now the highest. A recent study
confirms that even after accounting
for deductions, credits and other
tax-reducing provisions, U.S. multinationals face among the highest effective tax rates in the world. Many
U.S. companies opt out of the corporate tax system by organizing as
partnerships and “pass through”
businesses. In 2013, corporations accounted for only 44% of business income in the U.S. compared with
about 80% in 1980.
The world-wide American corporate tax system subjects U.S. companies’ foreign earnings to the U.S.
corporate tax, with the amount
owed offset by credits for taxes paid
in foreign jurisdictions. In contrast,
29 of the 35 countries in the Organization for Economic Cooperation
and Development have adopted territorial systems, which largely exempt the foreign business earnings
of their multinationals from homecountry taxation. This puts U.S.
The number of Forbes 500
companies that have their
headquarters in the U.S.
has fallen 25% since 2000.
multinationals at a competitive disadvantage when doing business
abroad. They face the high U.S. corporate rate on their earnings in foreign markets while their global
competitors face the much lower local rates. This difference translates
into a sizable cost advantage for
foreign multinationals, allowing
them to charge lower prices and
capture market share from U.S.
companies.
Current law allows U.S. multinationals to defer U.S. tax payments on
foreign earnings until they are repatriated. Most American companies
take advantage of this option for at
least some of their foreign earnings.
As foreign earnings have grown and
foreign corporate tax rates have plummeted, the deferral option has become
more attractive. An estimated $2.6
trillion of U.S. companies’ foreign
earnings is now trapped abroad. This
is money that might otherwise be
used to finance investment, job creation and domestic growth.
Tax considerations also influence
corporate decisions about how acquisitions are financed and where
merged or acquired entities are headquartered. The combination of a high
corporate tax rate and an outdated
world-wide system has caused some
U.S. companies to move their headquarters overseas or pursue an acquisition by a foreign competitor. It
has also reduced U.S. companies’
competitiveness in cross-border acquisitions.
In such acquisitions, a U.S. purchaser of a foreign company owes
U.S. tax on the resulting foreign income stream. That’s tax that wouldn’t
be owed by a foreign purchaser headquartered in a country with a territorial tax system. According to an analysis of Thomson Reuters data, foreign
acquisitions of U.S. companies were
more than three times as great in deal
value than U.S. acquisitions of foreign
companies in 2015. That suggests the
U.S. is no longer the country of choice
for global companies’ headquarters
and activities.
The competitive dynamics of the
global economy were different in 1986,
when the U.S. last reformed its tax
code. It is time for comprehensive reform that reduces the corporate rate,
broadens the tax base, simplifies the
system, and adopts a modern territorial approach with safeguards to protect the U.S. tax base. Lawmakers on
both sides should work together to
craft reforms that will benefit America’s workers, companies and economy.
Ms. Tyson is a distinguished professor of the Graduate School at the
University of California and serves as
an economic adviser to the Alliance
for Competitive Taxation. She headed
the Council of Economic Advisers and
the National Economic Council during
the Clinton administration.
Congress Can Rescind the CFPB’s Gift to Trial Lawyers
By Ted Frank
D
o Americans need more lawsuits? They’ll get them if the
Consumer Financial Protection Bureau has its way. The CFPB—
created by the Dodd-Frank Act of
2010 and still run by an Obama appointee—issued a rule in July barring financial institutions from including arbitration clauses in their
contracts with customers. That
means disputes would have to be
settled by class-action lawsuits,
which mostly benefit lawyers.
The agency justifies its rule by
claiming it found that 79% of money
paid in class-action settlements goes
to consumers. The statistic is bogus.
Lawyers publicize the handful of settlements in which cash actually goes
to consumers but hide the overwhelming majority of settlement results from public view.
A Florida federal district court, for
example, has in recent years approved several settlements with
banks concerning mortgage-insurance
practices. Lawyers collected tens of
millions of dollars. But the claims
process for mortgage-holder class
members was so arduous that consumers were certain to receive only a
fraction of that. Class members, who
have no say over who is appointed as
their attorney, objected repeatedly.
The court refused to consider how
much class members would actually
receive in the settlements—or even
require its disclosure.
How did the CFPB study treat settlements like these, in which there is
no public information about how
much the class received? It assumed
every class member got paid, then
calculated its ratio based on that fictional “gross relief” number. The
agency also calculated a “net relief”
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ratio based on actual payments—but
that ratio ignored all settlements in
which the actual payments were not
disclosed, as well as those in which
the class received no cash at all and
the attorneys got 100% of the proceeds.
My legal team at the Competitive
Enterprise Institute got involved in
a recent class-action settlement involving Duracell batteries. (The
CFPB rule only applies to financial
businesses, but the rules for what
lawyers can take from class-action
settlements are the same for batteries as for banks.) The plaintiffs attorneys in the Duracell case received more than 16 times as much
as their clients. They countered that
since the majority of class-action
settlements fail to compensate more
than 99.7% of the class, their 0.5%
compensation rate was above average. We regularly litigate against
settlements with even worse ratios
than that.
Class-action attorneys fees often
total thousands of dollars an hour.
And even that number understates
the windfall to lawyers because, as
The bureau’s rule against
arbitration won’t help
consumers, but it will lead
to many more lawsuits.
The Wall Street Journal reported in
2013, many cases involve $25-anhour temps with law degrees doing
menial tasks that are billed to class
members at over $500 an hour.
The CFPB’s study also ignored the
millions of dollars spent on lawyers
to defend against lawsuits even
when the defendants prevail—costs
eventually passed to consumers.
Congress has a chance to undo
this CFPB regulation, thanks to the
Congressional Review Act of 1996.
The law requires federal agencies to
submit new rules to Congress, which
then has 60 “session days” to disapprove such rules with a simple majority vote and presidential signature.
The House voted in July to repeal the
CFPB rule. The Senate can save consumers billions by following suit.
Trial lawyers are a major source of
Democratic funding and can expect
lockstep Democratic opposition to efforts to repeal the rule, as happened
in the House. Senate Republicans
need to unify and get the 50 votes required to perform the consumer-protection role the CFPB has abdicated.
Mr. Frank is an attorney at the
Competitive Enterprise Institute.
Notable & Quotable: Is Weather Climate?
Scott Adams blogging at Dilbert.com, Sept. 6:
It wasn’t that long ago that climate scientists and their supporters
mocked the critics who looked out
their window, saw snow in the winter, and declared “global warming” to
be a ridiculous hoax.
The climate scientists were right
about that. You can’t predict the future by looking at today’s weather,
even when the weather is setting
records. . . .
If the recent hurricanes and
weather extremes are meaningful in
terms of climate change, we really,
really, really need to know that.
THAT is NEWS. In fact, no news is
bigger than that news. Even the risk
from North Korea is smaller than the
risk of total climate catastrophe. So if
the current weather extremes are
statistically meaningful, and science
confirms, why-the-hell isn’t that the
lead story everywhere?
On the flip side, if climate scientists do NOT believe our current
weather extremes are meaningful in
terms of climate predictions, I’d say
THAT should be the lead story too,
simply because so many people believe they are seeing the beginning of
the end times, climate-wise.
So why is the biggest story in the
world conspicuously missing from
the news? Keep in mind that climate
change is still the biggest story even
if the hurricanes are NOT telling us
something new. The public wants to
know how big the threat is. We’re
scared!!!
Instead of that news, we get
mostly crickets. . . .
My working hypothesis is that science doesn’t know one way or another whether the current weather
extremes are predictive of things to
come. And if they are not yet sure,
they would say as much. And that
would be a problem for news organizations dedicated to reporting climate science risks as real and dire. If
you think the world is best served by
convincing the public that climate
risks are real, your most socially responsible play in this case is to ignore climate scientists at the moment
and let the public believe (without
the benefit of scientific support, at
least right now) that current temperature extremes are a clear sign of climate collapse.
A18 | Thursday, September 7, 2017
THE WALL STREET JOURNAL.
Customer Satisfaction:
The Only Thing That Matters.
“LG has received more J.D. Power awards for
Kitchen & Laundry Appliances than any other manufacturer”
LG is honored to receive J.D. Power top rankings
in 7 out of 11 home appliance categories:
French Door Refrigerators | Top-Mount Freezer Refrigerators
Front-Load Washers I Top-Load Washers
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LG received the highest numerical score in the respective segments of the J.D. Power 2017 Laundry and Kitchen Appliance
Satisfaction Study, based on 14,745 (kitchen) and 6,241 (laundry) total responses, measuring customer opinions about their new
appliance purchased in the previous 12 months, surveyed February-March 2017. Your experiences may vary. Visit jdpower.com.
TECHNOLOGY: INTEL WINS REPRIEVE ON EU ANTITRUST FINE B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2465.54 À 0.31%
S&P FIN À 0.24%
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S&P IT À 0.18%
Thursday, September 7, 2017 | B1
THE WALL STREET JOURNAL.
DJ TRANS À 0.46%
WSJ $ IDX g 0.02%
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Inflation and Growth Go Separate Ways
Economies pick up but
prices stall in shift with
broad policy-making,
market implications
BY JON SINDREU
The world’s biggest economies are chalking up stronger
growth. Yet what was once
thought to be growth’s constant companion is puzzlingly
missing: inflation.
The U.S. economy grew at
an annualized 3% in the second
quarter, but in July consumerprice inflation advanced only
1.7% from the previous year.
Japan’s economy grew by
an annualized 4% in the same
quarter, for its longest expansion since 2006. Yet inflation
hovers around zero, as it has
for most of two decades. Eurozone inflation is stuck at 1.5%
despite the bloc’s recovery.
Standard economics teaches
that prices are ultimately set
by supply and demand. When
growth is strong, people demand more products and companies need to offer better pay
to hire more workers, and so
prices go up.
But there are signs the relationship is broken. If it is, the
consequences are vast for economic policy making and financial markets.
“There’s no question this is
a very fundamental challenge
to our knowledge and our policy making,” said Adam Posen,
president of the Peterson Institute for International Economics.
The growth-inflation relationship is the fulcrum of central banking: Central banks set
an inflation target—usually
around 2%—and then lower interest rates to help prices adjust whenever demand falters.
If there is a risk that excessive
spending pushes inflation over
the target, they raise rates to
retard growth.
It is essential to investors’
decisions about where to put
money: Bonds do well when interest rates fall, and falling interest rates traditionally are
taken as signaling concerns
about growth, so stocks and
bonds typically cushion each
other.
Yet in 2017, and for much of
the postcrisis period, bonds
and stocks have been going in
the same direction. This year,
the S&P 500 has risen almost
10%, while 10-year Treasury
prices have gained 6%, pushing
the benchmark U.S. bond yield
down near 2%—a level typically associated more with fi-
1.7%
Year-on-year increase in U.S.
consumer price index in July
nancial distress than with improving growth.
Explanations
for
the
breakup of the growth-inflation marriage abound. European Central Bank President
Mario Draghi argued in June
that statistics miss people in
temporary jobs or outside the
labor force—in other words,
the economy isn’t necessarily
as strong as the numbers suggest.
In a speech Tuesday, Federal Reserve governor Lael
Brainard said that “one simple
explanation may be the experience of persistently low inflation”: Because inflation has
been low and often falling for
much of the past decade,
households and firms now expect low inflation in the future
as well.
Paul Donovan, chief economist at UBS Wealth Management, believes the bond market is giving the wrong signal
about inflation. “Bond markets
are rigged,” he said, by extraordinary demand for safe
India’s Market and Economy Stand Out From Rest of the Crowd
debt, created by an aging population, regulation and centralbank buying.
But it is also possible, investors say, that something
deeper has changed. Candidates include globalization, the
decline of labor unions and the
rise of big multinationals holding down consumer prices in
an effort to grab market share.
Bond markets aren’t imagining low inflation. Unemployment across the developed
world has fallen to where it
was before 2008, so in theory
companies should be offering
more generous pay increases
to attract workers and increasing prices to offset the cost.
Neither is happening.
A partial explanation is that
workers can’t demand pay
Please see SHIFT page B2
BY RACHAEL KING
Sanofi
Ends Zika
Vaccine
Testing
When Meg Whitman declared to Hewlett-Packard investors at an annual meeting in
2012 that it would take five
years to turn around the troubled hardware maker, there
was an audible gasp in the
room, the chief executive recalled.
“They were like, ‘You’ve got
to be kidding me. Five years?’”
Ms. Whitman said in a recent
interview. “I think they just
didn’t quite understand how
deep the hole H-P had dug itself.”
The 61-year-old chief has
since carved up one of Silicon
Valley’s most-storied technology companies in a series of
splits and sales. A fourth major
deal completed Friday—the
$8.8 billion spinoff of its software business—is the culmination of a controversial turnaround plan that went off
script. It involved the largest
split in corporate history, tens
of thousands of layoffs, $18 billion in write-offs and a nearly
entire recasting of the executive ranks.
The results are mixed, analysts say, delivering billions of
dollars to shareholders and
erasing some debt but arguably
without the innovation needed
to effectively compete in declining markets for corporate
hardware.
Now that the five years are
over, the question is what is
next for Ms. Whitman, who
previously served as chief executive of eBay Inc. and ran for
governor of California in 2010.
Speculation about Ms. Whitman’s possible exit from Hewlett Packard Enterprise Co.
revved up over the past several
weeks following reports she
was interviewing for Uber
Technologies Inc.’s top job.
Some people familiar with her
thinking say she has begun to
make plans to leave HPE—
which split from HP Inc. in
2015—as soon as this fall.
Asked about whether she is
leaving the company, Whitman
Please see CEO page B4
Drugmaker Sanofi SA has
ended its development of two
Zika virus vaccines, citing a decline in new infections and limits on U.S. government funding,
a move that illustrates the challenges in sustaining research in
emerging infectious diseases
after major outbreaks subside.
A division of the U.S. Department of Health and Human Services, the Biomedical Advanced
Research and Development Authority, or Barda, informed the
French company’s Sanofi Pasteur vaccine unit in August that
the agency had reviewed the
Zika projects it was funding
and “decided to focus on a
more limited set of goals and
deliverables,” Sanofi said in a
statement posted on its website
last week.
As a result, the company
said it is discontinuing its development of the Zika vaccine
it had been testing in partnership with the U.S. Army since
last year. The Walter Reed
Army Institute of Research
originally developed that vaccine, which contains an inactivated virus, and Sanofi had
been helping to study whether
it was safe and effective in people, with a $43 million Barda
grant.
Jon Heinrichs, associate vice
president and Zika project
leader at Sanofi, said in an interview that Sanofi’s development of the Army vaccine was
going to take several years longer than expected because of
the need to evaluate new vaccine doses manufactured by the
company, and because of the
decline in infection rates. He
said Barda was unable to commit to additional funding to accommodate the longer timeline.
“The driving forces behind
this are change in epidemiology
and lack of additional funding,”
Mr. Heinrichs said.
Sanofi had been part of a big
push by drug companies and
government and private researchers to find new vaccines
Please see ZIKA page B2
Whitman
Deflects
Talk of
An Exit
BY PETER LOFTUS
BOOMING BUSINESS The country’s stocks and currency have outperformed most large economies in the past six months. B11
Raking It In
$4 billion
Investors have been pouring funds into India at a time when
many other Asian nations have received much smaller
inflows or even outright withdrawals.
2
0
–2
ESTIMATED CUMULATIVE FLOWS, WEEKLY
India
China
–4
Others (Hong Kong, Thailand, Indonesia,
Philippines, Vietnam, Taiwan and Malaysia)
Jan.
Feb.
March
April
–6
May
June
July
Sources: EPFR Global (data); Dhiraj Singh/Bloomberg News (photo)
Aug.
THE WALL STREET JOURNAL.
Opioid Report Faults Drugmaker
BY JOSEPH WALKER
A representative of Insys
Therapeutics Inc. misled a
health insurer into approving
payment for a prescription of
the company’s addictive fentanyl painkiller, and 14 months
later the woman who received
the prescription was dead at
age 32 from complications related to the drug, according to
a report by a U.S. Senate committee investigating the opioid
crisis.
The report released Wednesday is the first to stem from an
investigation into the soaring
INSIDE
rate of opioid deaths in the U.S.,
one being led by Sen. Claire
McCaskill, the top-ranking
Democrat on the Senate Homeland Security and Governmental
Affairs Committee. The investigators said they have been reviewing “thousands of pages”
of documents to learn how
companies marketed the drugs
and what steps they have taken
to prevent opioids from being
diverted onto the black market.
Wednesday’s report provides
new details on the operation of
the Insys Reimbursement Center, or IRC, which was tasked
with helping patients and doc-
tors secure prior authorization
from insurers for prescriptions
of Subsys, an inhaled form of
fentanyl.
The Senate investigation
comes as Insys is already facing
multiple state, federal and civil
lawsuits over allegations that it
defrauded insurers and paid
kickbacks to doctors. Federal
prosecutors have alleged that
IRC staff, under the direction of
Insys executives and managers,
frequently misrepresented their
identities and patient diagnoses
to defraud insurers who paid
for Subsys, which can cost tens
of thousands of dollars a
month.
Insys is seeking to reach a
legal settlement with the U.S.
attorney’s office in Boston to
resolve allegations related to
the company’s sales and marketing practices and the IRC,
the company has said. The Boston prosecutors are investigating both civil and criminal allegations against the company,
according to people familiar
with the matter.
Insys, based in Chandler,
Ariz., has revamped its executive ranks over the past year,
and 90% of its sales force bePlease see INSYS page B2
HEARD ON THE STREET | By Justin Lahart
Hurricanes Push Fed Off Course on Rates
WIND WINS
CONVERTS
IN RURAL U.S.
BURGER CHAINS
TO TEST
IPO MARKET
ENERGY, B2
FINANCE, B10
The devastation Hurricane Harvey
brought to
Houston, and
any further
destruction Hurricane Irma
could cause, pose little longterm threat to the U.S. economy. But the Federal Reserve’s plans to raise rates
one more time this year may
not weather the storms.
One of the peculiarities of
how we gauge the economy
is that natural disasters end
up looking like a wash. When
people are unable to buy
things or go to work, and
when businesses are forced
to close, gross domestic
product gets dinged. But the
effort to rebuild what was
lost can more than offset
those drags. And property
that is permanently lost
doesn’t show up at all in
growth measures. The timing
of these pluses and minuses
is what matters for the Fed.
Any boost that comes after this year’s hurricanes
probably won’t show up until sometime in the fourth
quarter. Hurricane-related
losses, on the other hand,
will show up earlier. The lost
oil, natural gas and chemical
production in the Houston
area, in particular, will
weaken GDP. So, too, will the
higher gasoline prices that
have come as a result of the
storm, which will leave consumers with less to spend.
Economists at Barclays estimate Harvey will shave as
much as 1 to 1.5 percentage
points off GDP growth in the
third quarter. Irma could
make a further dent.
The Fed has been aiming
to raise rates for the third
time this year at its mid-December meeting. At that
point, it will know how much
GDP weakened in the third
quarter, but it won’t have
much certainty about the
scope of any rebound.
With a weaker economy,
the only thing that would get
the Fed to raise rates would
be inflation heating up
quickly. The hurricanes could
cause that as supplies shrink
and demand rises, but the
Fed will likely see any price
increases as temporary.
The Fed has paused its
rate-increase campaign
whenever there have been
doubts about growth. The
hurricanes are big enough to
convince all but the biggest
doubters. Wait til next year.
B2 | Thursday, September 7, 2017
THE WALL STREET JOURNAL.
* ***
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Exxon Mobil..............B11
Ahold Delhaize............B3
Alphabet......................B2
Amazon.com..........B2,B3
American Airlines Group
.....................................A6
Anbang Insurance Group
...................................B12
A.P. Moller-Maersk...B12
Apple...........................B4
F
P
Facebook ..................... A2
Fat Brands.................B10
Foxconn Technology....B4
Pactera Technology
International...........B10
Procter & Gamble..B3,B4
Q
Goldman Sachs Group
...................................B10
Qualcomm...................B4
H
Sanofi..........................B1
Social Finance...........B11
Square.......................B11
T
Tencent Holdings......B11
Toshiba........................B4
Total .......................... B12
Trian Fund Management
.....................................B3
21st Century Fox........B6
C
I
Celtic Global Consulting
.....................................A6
Chevron ..................... B11
China Merchants Bank
...................................B12
Chipotle Mexican GrillB3
CSX..............................B3
Icera.............................B4
Insys Therapeutics ..... B1
Intel.............................B4
K
Uber Technologies ...... B1
United Continental
Holdings..................B11
D
Kansas City Chiefs...A14
KBS Realty Advisors B10
Keppel........................B10
Kirkland & Ellis...........B3
Vantiv..........................A2
Varo Money...............B11
Vornado Realty Trust.B3
Dalian Wanda Group B11
Delta Air Lines...........A6
Deutsche Bank..........B10
DONG Energy............B12
E
eBay.............................B1
Expedia........................B4
J
JetBlue Airways.........A6
U
V
M
W
Manulife Financial....B10
Metromedia Restaurant
Group.......................B10
Walt Disney................B4
Western Digital..........B4
Whole Foods...............B3
INDEX TO PEOPLE
A
G
Adams, Jon...............B11
Arpaia, Mary Lu..........B3
Goodwin, Lewis ........ B11
Grünwald, Stefan......B11
An Indiana wind farm. The industry has powerful allies, including Energy Secretary Rick Perry, a booster while Texas governor.
Murdoch, James ......... B6
Murdoch, Lachlan ....... B6
N
B
H
Neri, Antonio..............B4
Bach, Amy...................A6
Benson, Richard........B11
Bertels, Robb..............B3
Blankfein, Lloyd C.....B11
Borowski, Didier.........B2
Bright, Rick.................B2
Harrison, Hunter.........B3
Heinrichs, Jon.............B1
Helfstein, Jason..........B2
P
J
Peltz, Nelson...............B3
R
Jianlin, Wang............B11
Reses, Jacqueline.....B11
Rice, Peter...................B6
C
K
S
Cloherty, Michael......B11
Cornell, David............B11
Cryan, John...............B10
Kapoor, John N...........B2
Khosrowshahi, Dara ... B4
Komninos, Assimakis.B4
Smith, Kathleen........B10
Speranza, Luigi.........B12
D
L
Thoresen, Erik.............B3
Donovan, Paul.............B1
Dorsey, Jack..............B11
Linzner, Ryan..............B2
W
F
Maloni, David..............B3
McCarty, Kevin ........... A6
Motahari, Saeed.........B2
Fauci, Anthony S........B2
Flay, Bobby................B10
M
INSYS
Continued from the prior page
fore 2014 is no longer with the
company, CEO Saeed Motahari
said in a letter to Sen. McCaskill included in the report. The
“mistakes and unacceptable actions of former Insys employees” do not reflect the company’s current culture, he said.
In an emailed statement
Wednesday, Insys said it cooperated extensively with Sen.
McCaskill’s investigation, but
“we respectfully disagree with
certain characterizations” in
the report. “The report relates
to activities of former employees of our company and matters that the company has addressed in its own efforts and
in connection with investigations by” state and federal officials, the company said.
Mr. Motahari, a former exec-
Several former Insys
executives and
managers have been
charged with crimes.
utive at Oxycontin-maker Purdue Pharma, took over as Insys
CEO earlier this year and serves
on the company’s board of directors. Despite the organizational changes at the company,
the majority of its directors
have been with the firm since
before its launch of Subsys in
2012. The directors include former CEO John N. Kapoor, the
company’s co-founder and largest shareholder.
According to the Senate report, a doctor prescribed Subsys to New Jersey resident
Sarah Fuller in January 2015 to
treat her back pain and other
ailments. But because of the
drug’s high price tag, combined
with its high potential for abuse
and overdose, insurers like Ms.
Fuller’s had restricted its use to
patients who suffered from severe cancer pain, the only use
approved by the Food and Drug
Administration.
An Insys representative
called Ms. Fuller’s insurance administrator, EnvisionRx, to get
clearance for the prescription,
and said she was “calling with
[Ms. Fuller’s] doctor’s office,”
according to a transcript of the
January 2015 call included in
Wednesday’s report. The Insys
representative provided the
doctor’s national provider identifier number, or NPI.
When the EnvisionRx representative asked if the Subsys
prescription was for cancer
pain, “the Insys employee
avoids responding directly and
instead explains ‘there’s no
T
Weisler, Dion .............. B4
Whitman, Meg............B1
Wiederhorn, Andrew B10
Wu, Xiaowei..............B11
code for breakthrough cancer
pain,’” according to the Senate
report. The Insys representative
later says, “it’s for breakthrough pain, yeah,” according
to the report.
A spokeswoman for EnvisionRx didn’t respond to a request for comment.
Ms. Fuller’s prescription was
approved, and “the result…was
death due to allegedly improper
and excessive Subsys abuse,”
the report says. In a wrongfuldeath suit filed against Insys
and others in New Jersey state
court, Ms. Fuller’s family alleges she died in March 2016 as
“a result of an adverse reaction
to prescription drugs,” including Subsys and the antianxiety
medication known by the brand
name Xanax.
Insys has said it is defending
itself vigorously against the
lawsuit.
In an interview Wednesday,
former Insys employee Patty
Nixon said the IRC misrepresented Subsys prescriptions,
and that this played a vital role
in expanding the use of Subsys
to patients without cancer.
Many of them, she said, didn’t
need the drug and their insurers wouldn’t have paid for it
otherwise.
“The only way to get it into
the patient’s hands was it had
to get through the IRC, otherwise the patient had to figure
out how to pay thousands of
dollars to pay for this medication,” said Ms. Nixon.
Several former Insys executives and managers, including
ex-CEO Michael Babich, have
been charged with crimes related to their work at the company. Mr. Babich has pleaded
not guilty to charges including
racketeering conspiracy, mail
fraud and violations of the antikickback statute. Elizabeth Gurrieri, the former head of the
IRC, pleaded guilty in June to
wire-fraud conspiracy and is cooperating in a federal investigation into Insys, according to
court records.
Rise and Fall
Annual sales for Subsys, the
fentanyl painkiller made by Insys
Therapeutics.
$350 million
First half
300
250
200
150
100
50
0
2013
DAVID KASNIC FOR THE WALL STREET JOURNAL
Hewlett Packard
Enterprise.................B1
HNA Group................B10
Hon Hai Precision
Industry.....................B4
S
’14
’15
’16
Source: the company
THE WALL STREET JOURNAL.
’17
Wind Powers Rural U.S.
BY ERIN AILWORTH
FOWLER, Ind.—BP PLC
does big business harvesting
energy in and around this farm
town. But it isn’t oil and gas—
it’s wind.
Hundreds of wind turbines
ring Fowler, their white towers
rising for miles amid the
golden-tipped cornfields and
leafy soybean plants blanketing much of Benton County,
population 8,650. More than
half of the county’s 560 turbines are operated by BP,
which has three wind farms
here.
“Turbines as far as you can
see,” said Ryan Linzner, who
manages the BP wind farms.
Wind developers have made
$17 million in payments to the
county and have spent $33
million on roads, a boon for an
economically struggling community that about a decade
earlier considered hosting a
waste dump to generate jobs
and government revenue.
The wind farms took hundreds of construction workers
to build and created 110 permanent jobs, mostly wind
technicians—in charge of servicing and maintaining wind
turbines—who, according to
federal data, earn about
$51,500 a year in Indiana.
“Benton County didn’t see
the recession until 2011,” said
the county commission’s president, Bryan Berry, who has
three turbines on his farmland.
“The wind industry helped
keep things open.”
As wind becomes a bigger
part of the U.S. electricity mix,
it is becoming an economic
force in rural communities
such as Fowler, a development
that is changing the political
conversation around renewable energy in many parts of
ZIKA
Continued from the prior page
and medicines after the mosquito-borne virus spread rapidly in Brazil and elsewhere in
the Americas in 2015 and 2016.
The Zika virus was linked to
causing defects in many babies
and fetuses of women infected
by the virus.
The rate of new infections
has declined, and in November
2016 the World Health Organization lifted the public-health
emergency for the outbreak it
had declared earlier last year.
The decline in infection rates
may prolong vaccine development time lines because researchers may have to enroll
more people in clinical trials to
get enough data to demonstrate
safety and efficacy, Anthony S.
SHIFT
Continued from the prior page
raises. In its annual report in
June, the Bank for International Settlements found a
“positive and significant” link
between wages and the
strength of unions. Unionization has dropped by half over
four decades.
Enrique Martínez-García,
economist at the Federal Reserve Bank of Dallas, published
research in July showing that
globalization is part of why inflation has been low and unresponsive to growth.
Political Winds
Nearly 90% of the wind capacity brought online in 2016 was in states
that voted for Donald Trump.
Percentage of vote won by Trump
70%
Oklahoma
60%
Texas
Kansas
50%
Iowa
Minnesota
Illinois
40%
Total wind energy
capacity by state (MW)
10,000 MW
30%
5,000 MW
1,000 MW
California
Won by Trump
Won by Clinton
20%
20%
30%
40%
50%
60%
70%
Percentage of vote won by Clinton
Note: Only states with at least 1 MW capacity are shown
Sources: American Wind Energy Association (capacity); David Leip’s Atlas of U.S. Presidential
Elections (vote share)
THE WALL STREET JOURNAL.
and lowers the nation’s need
for foreign oil. “It helps us to
be energy independent,” he
said, adding that wind’s growing competitiveness with traditional energy sources has diminished the need for wind tax
credits, which are being
phased out.
Excluding subsidies, it costs
about $47 per megawatt hour
to generate electricity from
wind in North America over
the full lifetime of a facility,
compared with $63 for natural
gas and $102 for coal, according to a 2016 analysis by Lazard Ltd.
Wind produces more than
36% of Iowa’s electricity,
nearly 7 gigawatts of capacity
in all, second only to Texas’ 21
gigawatts.
The falling price of wind
power, along with its environmental benefits, helped persuade companies such as Facebook Inc., Microsoft Corp. and
Alphabet Inc.’s Google to open
data centers in the state, said
Debi Durham, director of the
Iowa Economic Development
Authority.
“We use this wind portfolio,
this renewable portfolio, as a
calling card when we are talking to companies,” she said.
Indiana is an up-and-coming wind competitor, with
nearly 2 gigawatts of wind capacity. More than half that capacity is in Benton County,
where there is roughly one
turbine for every 15 residents.
In addition to BP, which
owns wind farms here with
Dominion Energy Inc. and
Sempra Energy, the area’s
wind developers include Orion
Energy Group LLC, Pattern
Energy Group Inc., and the
North American subsidiary of
Électricité de France SA’s EDF
Énergies Nouvelles.
the U.S. Wind supplied just
over 6% of the country’s electricity last year, and the industry employed close to 102,000
people—nearly double the
number working in coal mining, according to federal data.
President Donald Trump
campaigned in part on reviving the U.S. coal industry and
has been critical of renewableenergy subsidies. But heavily
Republican states such as Indiana, Iowa, Texas and Wyoming
have embraced wind for the
work and revenue it brings.
Nearly 90% of the wind capacity brought online in 2016
was in states that voted for
Mr. Trump, according to the
American Wind Energy Association, a trade group.
In the process, the industry
has developed powerful allies,
including Energy Secretary Rick
Perry, who presided over a
wind-turbine boom as governor
of Texas, and Sen. Chuck Grassley, the Iowa Republican who
chairs the Judiciary Committee.
While some in Congress
have argued against the federal subsidies that wind energy receives, Mr. Grassley
said that support helped build
an industry that creates jobs
Fauci, director of the National
Institute of Allergy and Infectious Disease, said in an interview.
Development of vaccines for
such unpredictable pathogens
is “a risky business,” Dr. Fauci
said. “It’s unlike the development of drugs and therapeutics
for predictable diseases. It’s
tenuous.”
“Zika remains a public
health threat and we remain
committed to working with industry on Zika diagnostics and
vaccines,” Barda Director Rick
Bright said in a statement
Wednesday. He said the agency
continually evaluates the projects it is funding, which led to
revising the contract with
Sanofi. He added that Barda
continues to fund the development of several Zika diagnostics and blood-screening tests
and three other vaccines.
Part of Miami Beach’s effort last year to control the Zika virus
Companies can outsource
production or import if the
wage bill starts to get too high,
rather than raise prices. China
has flooded international markets with cheaper goods, ultimately pushing down prices.
BIS data show that in the
U.S., 10% of the change in labor
costs between 2006 and 2016
was determined by the price of
labor abroad, compared with
2% between 1995 and 2005.
For the world overall, it is
22%, up from 11%.
The Dallas Fed has started
“to seriously consider the impact of globalization on inflation,” Mr. Martínez-García said.
What makes the problem
difficult to solve is that inflation hovered around policy
makers’ targets for more than
two decades until 2008, after
shooting up in the 1970s. Central banks were then credited
with subduing inflation by
raising rates and cooling the
economy, but many investors
now doubt they can manage
the effect in reverse.
“Inflation is not a leading
indicator” of growth anymore,
said Didier Borowski, head of
macroeconomic research at
Amundi, Europe’s largest asset
manager. He said “much more
competition at the global
level” is leading producers to
price more aggressively.
JOE RAEDLE/GETTY IMAGES
B
Bain Capital ................ B3
Bobby's Burger Palace
...................................B10
BP................................B2
G
Mission Produce ......... B3
Indeed, the focus of many
analysts is now on the market
power of superstar firms, especially technology giants such
as Alphabet Inc. or Amazon.com Inc., rather than on
traditional supply-and-demand
explanations.
“When Amazon enters a
market, it drives prices down,”
said Jason Helfstein, a techsector analyst at Oppenheimer
& Co.
Federal Reserve Bank of
Chicago President Charles Evans referred to Amazon’s purchase of Whole Foods Market
Inc. as an example of “disruptive technology” that keeps inflation down.
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | B3
* *
BUSINESS NEWS
Peltz
Details
His Fixes
For P&G
Price Check
Whole Foods has cut prices on some items, but they are still
cheaper at Wal-Mart.
Price at Whole Foods
Large dozen
eggs (brown)
DAVID PAUL MORRIS/BLOOMBERG
Kale
(bunch)
Some shoppers said prices would have to fall by 20% for them to spend more at the grocery chain.
Haas
avocado
Almond Milk
(32 oz)
$7.98
$4.49
$3.99
$2.38
$3.49
$2.99
$0.89
$3.49
$3.49
$0.98
$2.50
$1.49
$0.99
$2.19
$1.99
$1.94
*As of Aug. 26 †As of Aug. 28-29 ‡As of Aug. 26-28
Source: Customer Growth Partners
THE WALL STREET JOURNAL.
Whole Foods Becomes Less Pricey
Some cuts under
Amazon’s ownership;
‘10 cents here and
there,’ says shopper
BY HEATHER HADDON
AND LAURA STEVENS
Amazon.com Inc.’s bid to
revive sales at Whole Foods is
showing some signs of success,
though the natural grocer’s
prices on many items still exceed those of competitors.
Shoppers interviewed at
Whole Foods stores in New
York, Chicago and the Bay
Area said they hadn’t seen
much of a change in their grocery bills since Amazon completed its roughly $13.5 billion
takeover of the grocer last
week.
“It’s like 10 cents here and
there,” said Erika Feehan, a 35year-old mother of two from
Brooklyn, who noticed lower
prices on a few products including avocados and eggs.
Several Whole Foods employees said they have noticed
an increase in sales at their respective stores since the
merger, beyond the expected
back-to-school rush.
A J.P. Morgan & Chase Co.
analysis of four days of car
traffic to Whole Foods stores
found visits were up compared
with averages before the
merger and during comparable
periods over the previous
three years.
But the chain’s prices remain higher than those at WalMart Stores Inc. or deep-discounters such as Aldi and
Trader Joe’s, analysts have
found.
A comparable basket of
Wal-Mart goods is still 37%
cheaper than at Whole Foods,
according to a store survey by
Consumer Growth Partners.
Whole Foods had narrowed the
gap by 3 percentage points
from before the merger, the
market research firm found.
“Wal-Mart will not see a
major short-term competitive
threat even from a repriced
Whole Foods Market,” said
Craig Johnson, the firm’s president. A Wal-Mart spokesman
said the company felt confident of its position in the industry.
Whole Foods stores in different regions of the country
are also holding routine sales
that go beyond the Amazon
markdowns, a spokeswoman
for the grocer said. She said
Whole Foods would continue
to cut prices, adding that its
products are superior to those
sold by its competitors. Amazon declined to comment.
Amazon’s takeover of Whole
Foods has heightened the competition among grocery stores.
An increase in the number of
businesses that sell food has
contributed to an extended period of lower food prices, just
at a time when large chains
are racing to invest in e-commerce operations. Grocery
stocks are down 18% this year,
according to FactSet.
A spokeswoman for Ahold
Delhaize NV, owner of U.S.
grocery chains such as Food
Lion and Stop & Shop along
with the Peapod online grocery service, said the company
is investing more in e-commerce and private-label brands
to compete.
Monique Kofoid, a 52-yearold stay-at-home mother shopping at a Whole Foods in Chicago on Tuesday, said she
believes Amazon will transform grocery shopping as it
has buying other consumer
goods. She said she hopes to
buy more of her groceries
through Amazon Prime as the
company sells more products
through the online membership service.
Whole Foods hasn’t added
to its list of items marked
down after the merger last
49
Cents per pound for conventional
bananas at Whole Foods stores
week, but some stores have
placed larger orange signs advertising the discounts. A
Goldman Sachs survey of
roughly 90 items at a Whole
Foods in New York City found
that one-fifth were marked
down last week, with a 31%
price drop for discounted produce, 20% for packaged goods
and 19% for refrigerated items,
compared with before the
merger.
The Trader Joe’s in Emeryville, Calif. was selling some
items for less than the Whole
Foods in nearby Berkeley on
Tuesday and was touting its
low prices.
“Our bananas have been
priced at 19 cents for 17 years,”
one sign read. Whole Foods’
conventional bananas now cost
49 cents a pound.
“I love the shopping experience here,“ said Carol Dreher,
a nurse shopping for items including flowers, bananas and
potatoes at Trader Joe’s. “And
I love the prices.”
But Whole Foods had undercut Trader Joe’s on some products. Two pounds of organic
Driscoll strawberries were
$6.49 at Whole Foods, compared with $6.99 at Trader
Joe’s. Organic red, seedless
grapes sold for $2.49 per pound
at Whole Foods compared with
$2.99 at Trader Joe’s.
Cutting prices on a few
items isn’t likely to replenish
the ranks of Whole Foods customers that have been declining
for nine consecutive quarters,
Barclays analysts said. Some
shoppers said prices would
have to fall by 20% for them to
shop more at Whole Foods.
—Sarah Nassauer
and Annie Gasparro
contributed to this article.
Holy Guacamole! Avocados Get Scarce Toys ‘R’ Us
Seeks Help
To Rework
Its Debt
BY BENJAMIN PARKIN
BY PAUL ZIOBRO
DAVID DE LA PAZ/GETTY IMAGES
Meager avocado harvests
have caused a shortage of the
fatty fruit, pushing prices to
record highs.
Avocado farming is a volatile business. Output from avocado trees alternates from
year to year, with a high-yield
season one year typically followed by a leaner one the
next. Packers and distributors
usually offset a bad harvest in
California, the largest U.S.
growing state, with fruit from
elsewhere in the Americas.
This summer a smaller crop
in California coincided with a
tough season in Mexico after a
lack of rain delayed the main
harvest there. As a result,
wholesale prices have soared
75% since mid-July to around
$80 for a case of 48 Hass avocados, according to the American Restaurant Association
Inc. Average retail prices for
avocados rose 35% in the first
half of this year to $1.21 per
avocado, according to the Hass
Avocado Board, pushed higher
by strong demand.
“There’s just not enough
supply out there,” said David
Maloni, president of the American Restaurant Association.
That is threatening the bottom line at restaurants like
Chipotle Mexican Grill Inc.
The burrito maker spends 10%
U.S. consumption of avocados has quadrupled since 2000.
of its food costs on avocados,
Credit Suisse estimates, meaning the price surge could hurt
Chipotle’s earnings for the remainder of the year.
Chipotle declined to comment in detail ahead of its next
earnings report in October.
The company said it believes
the impact of rising avocado
prices would be temporary.
U.S. Vice President Mike
Pence said on an August trip
to Latin America that the U.S.
would allow imports of Hass
avocados, the most common
variety, from Colombia to
widen its supplier base. Scientists are also working to make
crop cycles more uniform by
developing strains of the fruit
that grow more consistently.
“The market is growing
faster than the supply,” said
Mary Lu Arpaia, a biologist
breeding new avocado varieties at the University of California at Riverside.
U.S. consumption of avocados has quadrupled since
2000, the Hass Avocado Board
said. Demand is also increasing in Europe and Asia.
Glowing publicity of the
fruit’s high nutrient and beneficial-fat content has driven its
popularity, analysts say. Highend restaurants and food
trucks increasingly use the
fruit, said Erik Thoresen of
restaurant consultancy Technomic, helping make it a staple
in more than just guacamole.
The Whole Foods chain
slashed prices for its avocados
and many other products last
month as Amazon.com Inc. assumed ownership of the natural-food grocer. Not many
other retailers or restaurants
can afford to follow suit with
wholesale prices so high.
“We’re paying a lot more
for the product,” said Robb
Bertels, vice president of marketing at Mission Produce Inc.
in Oxnard, Calif., one of the
world’s largest avocado distributors. “We’re hoping production will ramp up.”
ating ratio is the percentage of
revenue consumed by operating costs, so the lower the better for a company.
CSX also scaled back its
per-share profit growth to between 20% and 25% this year,
instead of being in the higher
end of that range.
Mr. Harrison took over in
March and promised to run the
company’s 21,000-mile network more efficiently by idling
excess equipment, closing
some freight yards and running trains on a tighter schedule. However, the changes have
caused congestion, delays and
erratic service, according to
customers, some of whom have
complained to rail regulators.
In a statement Wednesday,
Mr. Harrison said the bulk of
the service challenges are behind CSX, and that key metrics, including train velocity
and so-called car dwell, are improving.
At an industry conference
Wednesday, CSX finance chief
Frank Lonegro said the railway
will likely soon win back
freight volume it lost to trucks
or other railroads after working through the disruption
caused during the summer.
ANDREW HARRER/BLOOMBERG NEWS
CSX Corp. on Wednesday
lowered some of its financial
targets after a summer of railway congestion and service
woes as its chief executive,
Hunter Harrison, implemented
his railroading strategy.
The railroad said due to
various operating challenges in
July and August, it now expects its 2017 operating ratio,
a closely watched metric, to
register “around the high end
of the mid-60s” percentage
range, instead of being
squarely in the mid-60s. Oper-
Wal-Mart price‡
$13.99
CSX Says Service Woes Took Toll
BY PAUL ZIOBRO
New†
$9.99
Organic apple
juice (64 oz.)
BY SHARON TERLEP
AND DAVID BENOIT
Activist investor Nelson
Peltz on Wednesday laid out a
detailed case for why Procter
& Gamble Co. should give him
a board seat, painting a picture of a company impenetrable to outsiders and incapable
of navigating the changing
consumer landscape.
In a 94-page presentation,
Mr. Peltz’s Trian Fund Management LP criticized the company as having lost its position
as a consumer-goods leader
and settled for “mediocrity,”
urging a restructuring of its
businesses, the hiring of outsiders and branching out into
smaller, local brands to attract
coveted millennial shoppers.
The blueprint is the latest
salvo in Mr. Peltz’s attempt to
win a board seat at the maker
of Tide and Pampers, the largest company to ever face a
proxy fight. It is Trian’s response to the company’s
monthslong argument that Mr.
Peltz brings no new ideas to
the table and therefore hasn’t
earned a seat.
Both sides are courting investors who are set to decide
at the company’s Oct. 10 shareholder meeting whether to add
Mr. Peltz to the board. P&G executives say the company already is bringing in outsiders,
simplifying its governing
structure and cutting costs to
free up cash to create and
market new products.
“The problem is that they
have lost and are continuing to
lose market share,” Mr. Peltz
said in an interview last week.
“Once you’ve had a consumer
and he’s left you, it’s very hard
to bring that consumer back.”
P&G has said Mr. Peltz’s
ideas are either ill-informed or
retreads of work that is already under way. “We’re already doing something and
he’s jumping on and saying,
‘Do more of it,’” P&G Chief Executive David Taylor said in an
interview last week.
Trian, which owns a $3.5
billion stake, says P&G should
organize itself into just three
business units, down from 10,
by combining businesses, such
as beauty, grooming and
health care. The units would
operate autonomously and
have total control over sales,
marketing, manufacturing and
other major functions. P&G
downsized to 10 business units
from 16 as part of a restructuring effort carried out before
Mr. Taylor took over in late
2015. The company has no
plans to further reduce that
number.
In a statement Wednesday,
P&G said its board and management team would review
Trian’s presentation but added
that the investor “has an outdated view of our company.
The fact is P&G is a profoundly
different Company than it was
just a few years ago.”
The company’s structure is
one of the thorniest points of
debate between the two sides.
While Trian criticizes P&G’s
overly complex “matrix” structure, P&G executives say a major restructuring in the last
year has created autonomous
units with control over all
parts of their business. They
say functions still controlled by
regional and corporate chiefs,
such as negotiating with retailers like Wal-Mart Stores Inc.
and Target Corp., are best handled at higher levels.
In its presentation, Trian
calls for P&G to set a goal of
having about 25 of the company’s top 100 executives with
significant outside experience.
Old*
Organic
rotisserie
chicken
The railroad operator has lowered some of its financial targets.
Toys “R” Us Inc. has retained lawyers from Kirkland
& Ellis LLP to help restructure
$400 million in debt due next
year, a person familiar with
the matter said, the latest
move by the toy chain as it
struggles with online competition.
The Wayne, N.J.-based retailer has been burdened with
debt since private-equity owners Bain Capital, KKR & Co.
and Vornado Realty Trust
took it private in 2005 for $6.6
billion. It has swapped debt
coming due this year and next
for longer-term debt with a
higher interest rate, and analysts had expected it to do the
same with a $400 million
bond due next year.
Toys “R” Us could successfully restructure its debt without seeking bankruptcy protection, Wells Fargo & Co.
analyst Tim Conder said in a
research note. But he added
lenders are becoming leery
working with retailers given
the number of bankruptcies
and online competition from
Amazon.com Inc. and others.
Toys “R” Us, which operates
about 875 stores in the U.S.
and another 765 abroad, has
previously indicated it was
working with bankers at Lazard Ltd. on a potential debt
refinancing.
Kirkland & Ellis’s restructuring group, with more than
100 lawyers, has long been one
of the go-to law firms for companies looking to revamp operations or to restructure
their finances.
The law firm has represented a number of troubled
retailers that have sought
bankruptcy protection within
the past year. CNBC earlier reported that Toys “R” Us had
hired Kirkland.
THE WALL STREET JOURNAL.
B4 | Thursday, September 7, 2017
TECHNOLOGY
WSJ.com/Tech
Intel Wins Reprieve on EU Antitrust Fine
BY NATALIA DROZDIAK
BRUSSELS—The European
Union’s highest court on
Wednesday backed Intel Corp.’s
appeal of a €1.06 billion ($1.26
billion) EU antitrust fine in
2009, referring the case back to
a lower court and dealing a
blow to a regulator that has
taken a hard line on U.S. tech
giants.
The decision could embolden
companies challenging the European Commission, the bloc’s
antitrust authority, in court
over competition decisions—
cases the regulator typically
wins. It could also force the
commission to re-examine its
strategy in several cases.
The Intel case centers on
whether an industry-dominant
company abuses its commercial
power by offering rebates to
business customers to retain its
market position. The commission in 2009 argued that the
chip maker violated the bloc’s
abuse of dominance,” said Assimakis Komninos, a Brusselsbased partner at law firm
White & Case. “While the Intel
case is about rebates, all major
corporates being investigated
by the commission can take
this as a positive sign.”
The ruling could have ramifications for other abuse-of-dominance cases, including the regulator’s antitrust probe into
Qualcomm Inc., which is accused of illegally paying Apple
Inc. to exclusively use its chips
and selling chips below cost to
force a competitor, Icera Inc.,
out of the market.
Most recently, the EU levied
a record €2.42 billion fine
against Alphabet Inc.’s Google
in June for abusing its market
position with its shopping service. Google has said it is considering an appeal.
“The commission takes note
of today’s ruling by the European Court of Justice and will
study the judgment carefully,”
the commission said.
Intel welcomed the ruling.
“While this case concerns
events that happened more
than a decade ago, we have always believed that our actions
were lawful and did not harm
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
NOTICE OF SALE
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Continued from page B1
said in the Aug. 23 interview
with The Wall Street Journal:
“I originally told the board I
would stay five years; it’s been
six in September. What I would
tell you is that there’s more
work to be done here.” Ms.
Whitman repeated those words
on Tuesday following the release of HPE’s third-quarter results and denied she is exiting
in the fall.
Ms. Whitman said in August
that she wouldn’t run for public office again, but would consider serving in the government. “When I graduated from
Harvard Business School and
went to [Procter & Gamble] in
Cincinnati, I never dreamed 10
years later I’d be at the Walt
Disney Co.,” Ms. Whitman said
of her career, including a brief
stint at the entertainment company. “If there’s something interesting next to do, it will reveal itself.”
Ms. Whitman, one of only a
few women running a prominent Silicon Valley company,
had ruled herself out of contention for Uber. But she appeared before Uber’s board as a
finalist ahead of a vote in late
August, said people familiar
with the matter. Ms. Whitman
denied she was ever a candidate, saying she only met with
directors in the final weekend
as a courtesy to the board.
Other people familiar with the
board deliberations say she
pursued the role and prepared
a comprehensive presentation.
Uber selected former Expedia Inc. head Dara Khosrowshahi as its new leader. But the
dust-up over Ms. Whitman’s involvement in the CEO race has
created an awkward situation
for the sitting chief of HPE.
Some former managers who
worked for Ms. Whitman say it
is difficult to imagine she
would be sufficiently challenged by running HPE for
much longer. The business she
now heads is just a fraction of
the size of what she took the
reins of six years ago.
Back then H-P was one of
the largest tech companies,
with about $127 billion in annual revenue and 350,000 employees. HPE—which mainly
sells corporate computing
hardware after divesting PCs
Meg Whitman as chief executive of eBay in 2006.
Tech Transfer
Since Hewlett-Packard broke in two, the market value of the
corporate-hardware business has shrunk through asset sales while
the PC and printer company has surged.
Market capitalization since the spilt
$40 billion
35
Hewlett Packard
Enterprise
30
25
20
HP Inc.
15
HPE sells services business
HPE spins
to Computer Sciences off software
business to
Micro Focus
10
2015 2016
2017
THE WALL STREET JOURNAL.
Source: FactSet
and printers, outsourcing services and software—has 52,000
employees and is projected to
report about $34 billion in revenue this year.
When Ms. Whitman took
over H-P in September 2011, it
had suffered from a rapid succession of CEOs and scandals
that damped employee morale.
The company was laden with
debt and investors were unhappy with its $10.3 billion acquisition of startup Autonomy.
Her first major decision
came within 30 days: Ms. Whitman would keep the PC business rather than spin it off as
her predecessor Leo Apotheker
wanted. If she had ripped the
H-P brand away from either the
PC or printer business, it would
have cost about $1 billion dollars to create a new brand, she
said.
For the next two years, Ms.
Whitman said H-P was stronger together, focusing instead
on repairing its financial
health. She said she tried to instill what she calls “founder
DNA,” making internal moves
that weren’t always popular.
She moved executives out of
their offices to sit in cubicles
so they would collaborate
more. She also tore down the
fence between executive parking and employee parking, trying to create a more egalitarian
environment.
Current and former executives describe Ms. Whitman’s
grueling work ethic. She was
known to respond to emails at
4 a.m., and during her first
year, she said she worked 48
out of 52 Saturdays.
! "!! ! ! !
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Ms. Whitman reversed
course after more than a year
of discussions with the board
and several quarters of sharply
lower revenue. In the fall of
2014, she and the board concluded the PC and printer unit
would be better off on its own.
That business, HP Inc., has enjoyed a resurgence under CEO
Dion Weisler, while HPE has
struggled to right the ship under Ms. Whitman.
Breaking up H-P has shored
up HPE’s balance sheet and allowed the company to focus on
its core corporate hardware
market. Investors also applaud
Ms. Whitman for the stockprice appreciation since her arrival six years ago. Those who
bought H-P stock on the day
Ms. Whitman started in September 2011 have received an
annualized return of 19%, outpacing a 14% return from the
S&P 500 over the same period,
according to an analysis from
Robert W. Baird & Co.
Still, Ms. Whitman hasn’t
been able to consistently spur
revenue growth at the rate of
gross domestic product as she
predicted. HPE also struggled
to keep up with a shift to cloud
computing as servers became
rapidly commoditized. Innovation has “taken a back seat to
pretty much everything else”
at HPE, said Rob Enderle, principal analyst of the Enderle
Group.
Ms. Whitman defended her
innovation record, saying the
H-P companies have brought
notable products to the market,
such as the Sprout PC, which
combines a projector, touch
mat and 3-D scanner, and HPE
Synergy, which combines storage, compute and networking.
But she admitted the
printer, PC and server markets
were tougher than expected.
“Frankly, it’s taken a little bit
longer to get our organization
and the innovation engine and
the sales organization to consistently deliver,” she said.
Ms. Whitman said she won’t
leave HPE until a succession
plan is in place. In July, she
promoted veteran executive
Antonio Neri to president.
“I think Meg and the board
have to decide what is the best
leadership for the future,” Mr.
Neri said in an interview. “I am
incredibly committed to this
company and obviously I will
do what is the right thing for
the company. Time will tell.”
Foxconn
Gets Boost
At Toshiba
ADVERTISEMENT
Franchising
To advertise: 800-366-3975 or WSJ.com/classifieds
FRANCHISE OPPORTUNITIES
BY TAKASHI MOCHIZUKI
AND YOKO KUBOTA
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competition,” said Steven Rodgers, the company’s general
counsel.
In the Intel case, the commission penalized the company
over rebates it granted to four
major computer manufacturers—Dell Inc., Hewlett-Packard
Co., NEC Corp. of Japan and Lenovo Group—for using its microchips between 2002 and
2007. The antitrust authority
found that Intel had used the
rebates, coupled with its dominant position, to lock rival Advanced Micro Devices Inc. out
of the market, reducing choice
for consumers.
CEO
ADVERTISEMENT
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antitrust rules because the use
of rebates by dominant companies necessarily hurts competition.
The European Court of Justice said in a statement that the
lower court failed to examine
whether Intel’s rebates to other
companies in fact restricted
competition. The decision
means that regulators may now
have to prove in each case that
the rebate offers would cause
economic harm.
“This is certainly a defeat for
the European Commission and
indicates a certain relaxation of
the formalistic case law on
JAE C. HONG/ASSOCIATED PRESS
Ruling by bloc’s
highest court could
blunt regulatory action
against U.S. tech firms
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TOKYO—Some
Toshiba
Corp. board members are
pushing to accept Foxconn
Technology Group’s bid for
Toshiba’s memory-chip unit.
Foxconn, the Taiwan-based
iPhone assembler formally
known as Hon Hai Precision
Industry Co., is offering more
than ¥2 trillion ($18.4 billion)
for Toshiba’s flash-memory
unit, people directly involved
in the discussions said. That is
slightly higher than the two rival bids, one from a group that
includes U.S.-based Western
Digital Corp. and another
from a group that includes
private-equity firm Bain Capital, they said.
Inside Toshiba, the Foxconn
consortium is getting a vocal
boost from some board members, people involved in the
talks said. These board members say that Toshiba would
be better off keeping the chip
unit, because it is the conglomerate’s biggest profit
maker, but they argue that if it
must be sold, Toshiba needs to
get a maximum price so its remaining parts can survive.
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | B5
Special Advertising Feature
Surface Runs Deep
Microsoft’s versatile Surface Pro is a game-changer for the modern mobile workforce
In
our always-on, hyperconnected age, it’s not just flexibility that workers want. It’s
not a glossy workspace, subsidized lunches or even a great benefits package.
It’s mobility.
The mobile workforce is set to grow
to 1.87 billion by 2022, states a report
from Strategy Analytics, accounting for
42.5 percent of the entire global workforce. To stay ahead of the curve, employers in every industry will need to
undergo a digital transformation and
think mobility-first to put themselves
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That transformation begins with a
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With enhanced battery life, two-in-one
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“Both current employees and younger people entering the workforce demand the ability to work from anywhere,
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“A 9-to-5 workday isn’t necessarily the
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that they need to meet the demands of
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GOING MOBILE
With the flexibility of a tablet and the
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ORCHESTRATING SUCCESS
There’s no one-size-fits-all approach
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The Wall Street Journal news organization was not involved in the creation of this content.
All in one, and one for all.
Orchestrated by CDW.
In a workplace that demands more flexibility than ever, you need a device
that adapts. All-portable, all-powerful, the Microsoft Surface Pro can help
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CDW.com/surface
©2017 CDW®, CDW•G® and PEOPLE WHO GET IT® are registered trademarks of CDW LLC.
B6 | Thursday, September 7, 2017
THE WALL STREET JOURNAL.
NY
BUSINESS NEWS
Do Free Business Courses Pay Off?
More people are flocking online for no- or low-cost M.B.A. courses, but the career benefits are still unclear
BY KELSEY GEE
BY JOE FLINT
JOHN BOAL FOR THE WALL STREET JOURNAL
An explosion of online business courses is prompting
some students to ask: What’s
the ROI for free classes?
Schools like the University
of Pennsylvania’s Wharton
School and the University of
Illinois at Urbana-Champaign
College of Business have attracted thousands of people to
free or lowBUSINESS
cost digital
EDUCATION versions of
courses taken
by full-time,
two-year M.B.A. students.
Classes such as “Selling Ideas”
and “People Analytics,” two
current Wharton offerings,
have helped schools win attention and revenue at a time of
waning interest in the flagship
M.B.A. degree.
“It used to be the case that
an M.B.A. from a top school
was a golden passport to professional success, and a few
universities had a monopoly
on the credential,” said Bill
Aulet, who teaches entrepreneurship at the Massachusetts
Institute of Technology’s Sloan
School of Management, which
offers a suite of free classes
online. Those credentials matter less now that online learning and nonuniversity training
have widened access to skills
that once came only with an
M.B.A., he said.
For learners, though, the
career payoff remains unclear
as many new certificates have
been untested in the job market, giving the credential less
sway than a traditional Bschool degree.
Still, students in massive
open online courses, or
MOOCs, tend to be further
along in their careers and not
immediately interested in an
M.B.A., said Anne Trumbore,
Wharton’s senior director of
online learning. In a recent
survey of 4,650 of the
school’s online learners,
roughly two-thirds were located outside the U.S., and
Rice Adds
Presidency
At 21st
Century Fox
Over three years Laurie Pickard amassed multiple certificates, but no degree, taking free online courses from schools like Wharton.
around 60% were seeking to
advance their careers.
Wharton has enrolled
nearly one million professional
learners since 2015. Around
100,000 of those have taken
individual courses or strung
together a series of classes to
earn credentials such as a professional certificate in digital
marketing, paying up to $600
a course. By contrast, the
school each year graduates
900 M.B.A. students, who pay
about $250,000 for their degrees.
Harvard Business School,
meanwhile, charges up to
$1,500 for eight-week classes
like “Becoming a Better Manager” via HBX, its online
learning platform. HBX revenue doubled to $10 million
last year, according to the
school’s most recent financial
statement.
“MOOCs have found their
audience, and it’s professional
learners seeking career-related
credentials,” said Dhawal
Shah, who has run the course
search engine Class Central
since 2011. The strong brands
of top business schools like
Harvard and Wharton carry
special weight in the increasingly crowded online educational market, he added.
Laurie Pickard began taking
free M.B.A.-level courses online while working as an international development specialist in Rwanda in 2013. Ms.
Pickard, now 36 years old,
chronicled her free coursework from schools like Wharton and University of Michigan’s Ross School of Business
on her blog, No-Pay M.B.A.
Over three years, she
amassed an online following,
along with multiple certificates, but no degree. In 2015,
Ms. Pickard was promoted—in
part, she says, because her
employers were impressed by
her new business acumen.
M.B.A. grads get a median
base salary boost of around
$30,000, according to the
Graduate Management Admission Council, which administers the traditional B-school
entrance exam. Calculating the
return on low-cost online
classes is harder.
“There seems to be a certification for everything these
days, from facilitation to surface engineering, and it’s
harder and harder to gauge
what someone has learned,”
said Anthony Gagliardo, director of human resources at
NASA’s Jet Propulsion Laboratory.
A study of more than 17
million online job listings
found that of 2,500 certifications requested by employers,
the most commonly sought
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were those awarded by industry associations, not schools.
“The fact that employers almost never ask for most certificates raises questions about
whether people are pursuing a
credential that actually has
currency in the market,” said
Matt Sigelman, chief executive
of Burning Glass Technologies,
a labor-market data firm that
conducted the analysis.
Even so, business-school
leaders are pushing further
with online courses to raise
both revenue and visibility. A
recent GMAC survey found
that 8% of prospective business school students said they
had completed at least one online course, compared with 6%
the year before.
“We’re reaching people who
would never show up on our
doorstep if Wharton only had
an in-person program,” Ms.
Trumbore said.
Fox Networks Group Chairman and Chief Executive Peter
Rice has been promoted to the
newly created position of president of 21st Century Fox, the
company said Wednesday.
Mr. Rice will continue to
oversee all of Fox’s broadcast
and cable television operations
with the exception of Fox
News, which continues to report to 21st Century Fox Executive Chairman Rupert Murdoch. Mr. Murdoch is also
executive chairman of the news
unit.
As part of his new role, Mr.
Rice will work with 21st Century Fox leadership on strategic initiatives to help the media
company compete in a rapidly
shifting entertainment landscape.
Fox’s cable channels, including Fox News and sports networks, are solid performers,
benefiting from growth in subscription fees from pay-TV providers. They helped boost the
company’s top line in the most
recent quarter, even as the
broadcast unit and film studio
weighed on results, which
modestly beat analysts’ earnings estimates.
The Fox network, which has
been mired in a ratings slump,
recently tapped Michael Thorn
to replace the departing president of entertainment, David
Madden.
Mr. Rice is seen as one of
the top executives at the entertainment conglomerate and is
close to not only Mr. Murdoch
but also his sons Lachlan and
James, to whom he reports.
Lachlan Murdoch is executive
co-chairman of 21st Century
Fox alongside his father, while
James Murdoch is the company’s chief executive.
21st Century Fox and Wall
Street Journal parent News
Corp share common ownership.
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
21807.64 s 54.33, or 0.25%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 19.96 20.08
P/E estimate *
18.53 17.96
Dividend yield
2.37
2.52
All-time high 22118.42, 08/07/17
Nasdaq Composite Index
Last
2465.54 s 7.69, or 0.31%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 23.86 24.71
P/E estimate *
18.85 18.57
Dividend yield
2.00
2.11
All-time high: 2480.91, 08/07/17
Last Year ago
6393.31 s 17.74, or 0.28%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 25.75
23.87
P/E estimate *
21.59
19.98
Dividend yield
1.11
1.23
All-time high: 6435.33, 09/01/17
Current divisor 0.14523396877348
Session high
Open
t
Close
65-day moving average
2500
6500
22000
2475
6400
21600
2450
6300
21200
2425
6200
20800
2400
6100
UP
Close
t
DOWN
Session open
22400
65-day moving average
Session low
65-day moving average
2375
20400
6000
Bars measure the point change from session's open
July
5900
2350
20000
June
June
Aug.
July
June
Aug.
July
Aug.
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
Transportation Avg
54.33
0.25
9237.46
9310.15
42.76
0.46
744.56
737.91
738.50
-4.31
25534.25 25428.93 25489.83
643.11
639.82
641.85
71.50
1.23
Utility Average
Total Stock Market
Barron's 400
Nasdaq Stock Market
Nasdaq Composite
6407.40
Nasdaq 100
5964.38
Standard & Poor's
500 Index
6356.20
5909.92
2469.64
6393.31
5951.13
2459.20
-0.58
0.28
0.19
0.28
17.74
18.40
2465.54
7.69
0.31
Volume, Advancers, Decliners
17.7
10.3
8.4
9742.76
7755.40
15.5
2.9
2.7
Most-active issues in late trading
748.16
625.44
8.7
12.0
9.1
25692.25 21514.15
661.93
521.59
12.5
14.8
9.5
6.7
6.7
6.0
High
9346.72
21849.24 21794.07 21807.64
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Late Trading
22118.42 17888.28
6435.33
5988.60
0.31
2480.91
MidCap 400
SmallCap 600
1724.40
842.54
1716.90
837.78
1719.67
839.94
1.33
2.01
0.08
0.24
1791.93
876.06
Other Indexes
Russell 2000
1406.02
1399.27
1402.20
2.54
0.18
1450.39
5046.37
4660.46
18.8
22.4
21.0
23.2
2085.18
11.7
13.3
12.8
10.1
1476.68
703.64
8.7
9.7
3.6
0.2
6.1
7.7
1156.89
11.2
3.3
6.2
7.1
NYSE NYSE Amer.
Volume
(000)
Last
VanEck Vectors Gold Miner GDX
8,165.9
24.95
0.03
0.12
24.96
24.91
General Electric
GE
7,065.3
24.92
…
unch.
24.95
24.85
Micro Focus Intl ADR
MFGP
6,332.5
31.73
…
unch.
31.83
31.60
Scorpio Tankers
STNG
5,020.4
3.55
0.04
1.14
3.60
3.50
SPDR S&P 500
SPY
4,915.3 246.41
-0.49
Company
Symbol
Net chg
After Hours
% chg
High
Low
-0.20 247.01 246.20
Cnsmr Staples Sel Sector XLP
4,405.2
55.28
…
unch.
55.28
55.18
Industrial Select Sector XLI
4,404.4
67.90
…
unch.
67.96
67.86
ExxonMobil
2,990.8
78.78
…
unch.
78.85
78.46
XOM
Percentage gainers…
RH
RH
1,881.2
66.70
17.28
34.97
70.40
48.92
Cabelas
CAB
1,634.3
61.10
7.66
14.33
61.40
53.44
Envision Healthcare
EVHC
13.3
52.40
3.63
7.44
52.40
48.52
Verint Systems
VRNT
91.8
41.60
2.15
5.45
42.00
38.85
Alder BioPharmaceuticals ALDR
26.9
9.70
0.40
4.30
10.00
9.30
45.77
0.39
9.0
7.4
2.4
516.91
514.40
516.07
1.67
0.32
533.62
455.65
5.5
2.0
0.8
NYSE Arca Biotech
4237.22
4176.80
4214.63
6.34
0.15
4232.90
2834.14
24.1
37.1
10.9
NYSE Arca Pharma
549.20
463.78
1.1
10.0
0.1
...And losers
99.33
69.71
27.3
-0.3
8.4
NCI Building Systems
NCS
9.9
15.05
-1.75
-10.42
16.80
14.70
101.08
73.03
-9.6
15.8
-1.4
Kemet
KEM
98.4
21.60
-1.47
-6.37
23.25
21.01
192.66
117.79
-18.8
-30.8 -23.9
CDK Global
CDK
108.8
59.86
-3.59
-5.66
63.45
59.86
1138.25
22.51
768.37
9.36
38.4
-2.6
22.0
-17.2
TripAdvisor
TRIP
52.1
42.28
-2.03
-4.58
44.32
42.28
Builders FirstSource
BLDR
26.3
16.30
-0.47
-2.80
16.77
16.30
11889.27 11855.15 11872.92
NYSE Composite
Value Line
530.52
527.12
529.59
3.88
KBW Bank
92.05
91.08
0.15
PHLX§ Gold/Silver
91.53
92.80
90.62
-1.06
PHLX§ Oil Service
91.35
127.96
125.75
127.22
2.10
1110.56
12.59
1099.88
11.35
1105.76
11.63
PHLX§ Semiconductor
CBOE Volatility
0.74
0.16
-1.14
1.67
0.19
2.13
-0.60 -4.91
Philadelphia Stock Exchange
Region/Country Index
Close
Percentage Gainers...
Net chg
2842.17
369.62
250.55
The Global Dow
DJ Global Index
DJ Global ex U.S.
DJ Americas
594.99
Sao Paulo Bovespa 73412.41
S&P/TSX Comp
15059.83
S&P/BMV IPC
50515.60
Santiago IPSA
3859.43
Americas
Brazil
Canada
Mexico
Chile
19.3
-1.3
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
12000.02 10289.35
Latest
% chg
YTD
% chg
0.21
0.18
0.07
6.08
0.66
0.17
0.34
1.99
1.75
1261.54
–0.20
–30.32
0.43
214.21
–39.95 –1.02
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
373.95
373.55
3890.55
5101.41
12214.54
1393.31
21814.56
516.47
1106.70
10131.00
552.77
8859.47
7354.13
0.24
0.95
6.86
14.85
90.83
1.00
76.87
1.01
5.87
–48.80
–2.20
–10.09
–18.79
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5689.70
Shanghai Composite 3385.39
Hang Seng
27613.76
S&P BSE Sensex
31661.97
Nikkei Stock Avg
19357.97
Straits Times
3232.47
Kospi
2319.82
Weighted
10547.86
–16.50
1.07
–127.59
–147.58
–27.84
–18.79
–6.80
–69.98
0.06
0.25
0.18
0.29
0.75
0.07
0.35
0.20
0.53
–0.48
–0.40
–0.11
–0.25
–0.29
12.3
13.4
17.1
10.1
21.9
–1.5
10.7
19.7
3.5
6.6
7.9
4.9
6.4
–5.3
13.4
6.9
–4.0
8.3
3.4
7.8
3.0
0.4
9.1
25.5
18.9
1.3
12.2
14.5
14.0
0.03
–0.46
–0.46
–0.14
–0.58
–0.29
–0.66
Company
Symbol
Verastem
Voyager Therapeutics
Skyline Corp
Professional Diversity
G1 Therapeutics
VSTM
Tyme Technologies
Opiant Pharmaceuticals
Fred's
Yangtze River Development
Griffon
TYME
Aspen Group
Babcock Wilcox Ents
Tellurian
Sarepta Therapeutics
Lifevantage
ASPU
SKY
IPDN
GTHX
OPNT
FRED
YERR
GFF
BW
TELL
SRPT
LFVN
High
52-Week
Low
% chg
Symbol
Delcath Systems
Finl Select Sector SPDR
Bank of America
SPDR S&P 500
VanEck Vectors Gold Miner
DCTH
General Electric
iShares MSCI Emg Markets
Ford Motor
Hewlett Packard Ent
iPath S&P 500 VIX ST Fut
GE
XLF
BAC
SPY
GDX
EEM
F
HPE
VXX
28.13
24.70
21.40
21.19
19.74
5.55 1.05
18.25 8.10
17.35 5.07
13.90 3.74
25.72 12.04
267.2
8.9
16.3
-5.2
...
LM Funding America
trivago ADR
Immuron ADR
Pulmatrix
Flex Pharma
LMFA
8.95
44.00
6.74
12.98
21.05
1.45
6.56
0.98
1.80
2.80
19.33
17.52
17.01
16.10
15.34
8.99 1.01
44.43 5.00
21.77 5.62
16.40 3.50
27.15 15.88
98.9
477.4
-38.7
205.4
23.2
Payment Data Systems
Dave Buster's Ent
Xenetic Biosciences
Aptevo Therapeutics
At Home Group
PYDS
6.70
3.01
10.82
46.73
5.02
0.85
0.37
1.33
5.65
0.60
14.53
14.02
14.01
13.75
13.57
7.75 5.35
17.72 1.61
21.74 4.70
63.73 25.47
12.86 2.86
...
-82.3
89.8
64.2
-59.7
Ominto
Xenon Pharmaceuticals
Kingsway Fincl Svcs
Kadmon Holdings
Kona Grill
OMNT
Volume % chg from Latest Session
(000) 65-day avg Close % chg
145,333
76,993
62,806
52,862
50,636
37.4
29.4
-9.8
-18.0
11.4
0.12 17.50
24.30 0.25
23.41 0.43
246.90 0.34
24.92 -1.54
47,958
44,026
40,791
40,345
35,555
24.3
-10.9
15.6
291.1
58.7
24.92 0.65
44.86 0.65
11.50 1.23
13.77 -1.92
47.58 -2.28
52-Week
High
Low
Five-year ARM, Rate
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
4.00%
(ARM)
3.00
2.75%
724-327-0010
2.00
Garden State Home Loans
2.88%
Cherry Hill, NJ
609-216-7912
1.00
The Washington Trust Company
2.88%
Westerly, RI
401-348-1200
t
0.00
S ON D J FMAM J J A S
2016
2017
Standard Bank, PaSB
Murrysville, PA
Oritani Bank
Twp of Washington, NJ
3.00%
888-674-8264
Wednesday
t
5-year Treasury
note yield
Orange Countys Credit Union
2.75%
Santa Ana, CA
714-755-5900
1
3 6
month(s)
Interest rate
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.32
1.32
Money market, annual yield
0.26
0.27
Five-year CD, annual yield
1.45
1.45
30-year mortgage, fixed†
3.78
3.76
15-year mortgage, fixed†
3.03
3.00
Jumbo mortgages, $424,100-plus† 4.28
4.27
Five-year adj mortgage (ARM)† 3.26
3.23
New-car loan, 48-month
2.90
3.04
HELOC, $30,000
4.59
4.66
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.83 l
0.24 l
1.17 l
l
3.44
l
2.70
l
4.22
l
3.13
l
2.85
l
4.57
1.25
4.25
1.32
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.22
1.00
1.00
1.08
-0.13
0.10
-0.40
-0.26
-0.29
-0.21
-0.18
0.28
1.50
–5
0.75
One year ago
0.00
–10
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
s
WSJ Dollar index
Euro
Yen
Country/currency
WSJ
.COM
52-Week
Low
% chg
-0.45
-2.44
-0.99
-0.37
-0.54
-17.24
-16.34
-15.25
-14.98
-13.81
8.40 2.15
24.27 10.43
10.00 4.47
6.98 0.50
12.07 3.01
-73.0
...
...
39.1
-69.7
1.85
51.41
2.35
1.94
23.04
-0.25
-6.73
-0.29
-0.23
-2.59
-11.90
-11.58
-10.98
-10.60
-10.11
3.80 1.17
73.48 37.60
5.90 2.21
3.09 1.15
26.40 10.19
10.8
14.4
-47.8
-15.7
77.9
3.21
2.90
5.45
2.54
3.05
-0.35
-0.30
-0.55
-0.25
-0.30
-9.83
-9.38
-9.17
-8.96
-8.96
23.05
9.95
6.50
9.42
14.44
7.0
-63.8
-5.9
-72.8
-77.9
XENE
KFS
KDMN
KONA
2.50
2.25
5.35
2.05
1.50
Ranked by change from 65-day average*
IBDR
HFXI
VYGR
LDR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
638
650
4,169
3,625
969
11934
5203
3288
3123
2546
3,507
6,917
93
213
20,066
1699
1615
1572
1563
1407
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Americas
Argentina peso
.0580 17.2418 8.6
Brazil real
.3226 3.1002 –4.8
Canada dollar
.8178 1.2229 –9.0
Chile peso
.001617 618.30 –7.7
Colombia peso
.0003432 2913.53 –2.9
Ecuador US dollar
1
1 unch
Mexico peso
.0562 17.7905 –14.2
Peru new sol
.3091 3.235 –3.5
Uruguay peso
.03473 28.7900 –1.9
Venezuela b. fuerte .099031 10.0979 1.0
2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1477.487
1.863
1.895
2.237
1.314 –1.862 2.879
2.108
2.921
2.400
5.120
2.660
1.759
2.145
2.920
2.440
5.094
2.730
1.757
2.609
3.390
2.790
6.448
3.120
2.516
1.539
2.520
1.920
4.948
2.000
1.429
1.631
1.270
0.410
7.814
0.706
1.132
805.981
5.329
5.400
6.290
5.134
3.971 5.419
2.997
4.109
2.824
3.663
2.534
3.027
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.8002 1.2497 –10.0
China yuan
.1533 6.5249 –6.0
Hong Kong dollar
.1278 7.8255 0.9
India rupee
.01562 64.035 –5.8
Indonesia rupiah .0000750 13330 –1.4
Japan yen
.009156 109.22 –6.7
Kazakhstan tenge .002928 341.49 2.3
Macau pataca
.1243 8.0428 1.6
Malaysia ringgit
.2366 4.2268 –5.8
New Zealand dollar
.7200 1.3889 –3.8
Pakistan rupee
.00949 105.340 0.9
Philippines peso
.0196 51.007 2.8
Singapore dollar
.7407 1.3501 –6.7
South Korea won .0008827 1132.85 –6.2
Sri Lanka rupee
.0065501 152.67 2.8
Taiwan dollar
.03323 30.096 –7.3
52-Week
High
Low
0.00
-0.28
-0.05
24.70
10.35
24.83
25.45
20.92
18.25
67.85
24.58
23.56
17.42
8.10
41.00
10.00 -0.50
38.45 0.87
13.35 -3.96
17.35 2.97
12.49 -16.34
10.20
39.86
21.75
17.70
24.27
9.75
31.90
13.05
11.09
10.43
24.60
24.73
20.34
13.63
67.70
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
.03017 33.150 –7.4
.00004400 22725 –0.2
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04566 21.902 –14.7
.1602 6.2430 –11.7
1.1917 .8392 –11.7
.003890 257.09 –12.6
.009406 106.32 –5.9
.1281 7.8038 –9.7
.2805 3.5653 –14.8
.01745 57.318 –6.4
.1253 7.9802 –12.4
1.0456 .9564 –6.1
.2919 3.4257 –2.8
.0384 26.0100 –4.0
1.3042 .7668 –5.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6529 .3770 –0.1
.0567 17.6420 –2.7
.2818 3.5491 –7.8
3.3175 .3014 –1.4
2.5963 .3852 0.1
.2709 3.691 1.4
.2667 3.7502 –0.01
.0783 12.7751 –6.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 85.28 –0.02–0.02 –8.24
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Wednesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
High
2.16
12.49
5.50
2.10
3.37
Asia-Pacific
2016
10-yr Treasury, Ryan ALM 1765.009
DJ Corporate
379.036
Aggregate, Barclays Capital 1949.450
High Yield 100, Merrill Lynch 2846.491
Fixed-Rate MBS, Barclays 1991.830
Muni Master, Merrill
524.026
EMBI Global, J.P. Morgan
Latest Session
Close Net chg % chg
U.S.-dollar foreign-exchange rates in late New York trading
Corporate Borrowing Rates and Yields
Treasury, Ryan ALM
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
Currencies
–15
30
Close
NYSE Arca
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
5
0
Bond total return index
HOME
EAGL
Double Eagle Acqn Cl A
Deutsche X MSCI Japan Hdg DBJP
Wayside Technology Group WSTG
ULH
Universal Logistics
TRVG
trivago ADR
24.15
33.94
10.47
12.00
43.64
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
APVO
32.38
45.18
13.27
14.86
169.64
10%
2.25
1 2 3 5 710
years
maturity
XBIO
IBCC
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
t
5-year adjustablet rate mortgage
PLAY
iSh iBds Mar2018 Cp xFin
iSh iBonds Dec 2026 Corp
IQ 50% Hdg FTSE Intl
Voyager Therapeutics
Landauer
Forex Race
3.75%
3.26%
FLKS
4.31
0.02
25.59 18.94
25.80 14.81
248.91 208.38
28.65 18.58
* Volumes of 100,000 shares or more are rounded to the nearest thousand
notes and bonds
Bankrate.com avg†:
PULM
Symbol
s
A consumer rate against its
benchmark over the past year
IMRN
Company
s
Selected rates
TRVG
Volume Movers
CREDIT MARKETS & CURRENCIES
U.S. consumer rates
Symbol
1.08
2.70
2.39
1.02
4.24
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor
Company
4.92
13.63
13.56
5.84
25.72
Most Active Stocks
Company
Nasdaq
Total volume*1,878,240,033 246,711,480
Adv. volume*1,112,437,861 168,495,214
Decl. volume* 742,681,992 77,454,899
Issues traded
3,061
1,285
Advances
1,619
915
Declines
1,272
344
Unchanged
170
26
New highs
106
69
New lows
45
12
Closing tick
160
20
Closing Arms†
0.85
1.19
Block trades*
9,713
1,537
Percentage Losers
Latest Session
Close Net chg % chg
VYGR
Total volume* 813,244,002 8,833,460
Adv. volume* 545,861,932 4,738,384
Decl. volume* 254,552,166 3,891,571
Issues traded
3,076
334
Advances
1,823
173
Declines
1,114
136
Unchanged
139
25
New highs
110
3
New lows
24
5
Closing tick
148
49
Closing Arms†
0.78
0.82
Block trades*
6,686
74
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
588.38
2.39
183.00
49.16
3.000
1333.90
0.66
0.50
0.028
-5.30
0.41
589.81
515.72
0.36 195.14
54.45
1.03
3.93
0.94
-0.40 1344.30
166.50
42.53
2.56
1127.80
% Chg
13.41
YTD
% chg
3.72
0.29 -4.94
8.04 -8.49
12.11 -19.44
-0.77 15.99
THE WALL STREET JOURNAL.
B8 | Thursday, September 7, 2017
COMMODITIES
Futures Contracts
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1075
3.1385
3.1075
3.1315 0.0240
Sept
Dec
3.1300
3.1605
3.1250
3.1515 0.0235
Gold (CMX)-100 troy oz.; $ per troy oz.
1340.00 1340.30 s
1332.60 1333.90 –5.30
Sept
Oct
1341.00 1343.50
1332.70 1335.20 –5.40
Dec
1345.00 1347.70
1336.40 1339.00 –5.50
Feb'18
1348.70 1351.10
1341.40 1343.00 –5.40
June
1356.60 1356.60
1348.10 1350.10 –5.40
Dec
1366.10 1366.10
1360.30 1361.10 –5.30
Palladium (NYM) - 50 troy oz.; $ per troy oz.
963.50
963.50
941.50
938.15 –24.90
Sept
Dec
955.55
963.95
930.15
931.90 –25.10
March'18 956.35 956.45
925.80
926.80 –24.10
Platinum (NYM)-50 troy oz.; $ per troy oz.
Sept
991.20 1006.90 s
991.20 1005.60 –1.80
Oct
1009.40 1017.50
1003.60 1007.10 –1.90
Silver (CMX)-5,000 troy oz.; $ per troy oz.
17.915
17.970
17.800
17.816 –0.029
Sept
Dec
17.980
18.070
17.885
17.910 –0.031
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
48.59
49.42
48.52
49.16
0.50
Oct
Nov
49.04
49.84
48.96
49.62
0.48
Dec
49.40
50.18
49.31
50.00
0.47
Jan'18
49.68
50.45
49.62
50.31
0.45
June
50.30
50.89
50.21
50.83
0.33
Dec
50.43
50.96
50.34
50.92
0.26
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.7385
1.7645
1.7374
1.7595 .0115
Oct
Nov
1.7232
1.7481
1.7224
1.7462 .0139
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Oct
1.6835
1.6940
1.6430
1.6733 –.0258
Nov
1.5751
1.5930
1.5702
1.5879 –.0007
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.970
3.019
2.960
3.000
.028
Oct
Nov
3.045
3.097
3.034
3.069
.025
Dec
3.190
3.225
3.180
3.216
.027
Jan'18
3.285
3.320
3.279
3.315
.028
March
3.240
3.283
3.235
3.268
.024
April
2.914
2.933
2.907
2.925
.014
Open
interest
6,363
224,606
342.00
356.00
Oct
March'18
14.01
14.61
Nov
26.15
14.32
14.88
13.89
14.47
26.15
26.15
Cotton (ICE-US)-50,000 lbs.; cents per lb.
833
45,841
435,966
32,191
9,364
8,971
14.29
14.85
.26 349,272
.22 252,889
26.32
.13
Oct
Dec
75.79
75.00
Sept
Nov
146.70
145.80
75.79
75.65
75.00
74.04
75.26
74.50
147.50
149.90
146.70
135.45
…
168
–.38 143,622
145.45
140.80
–.05
–4.20
109
7,174
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
160
34,434
597
Sept
Dec
158-140 158-210
157-060 157-120
Sept
Dec
127-230 127-260
127-150 127-180
157-170
156-070
157-200
156-110
–21.0 29,104
–21.0 724,074
127-110
127-030
–10.5 120,990
–10.5 3,282,967
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
20
64,537
127-105
127-020
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
1,875
158,719
Sept
Dec
119-042 119-042
118-267 118-285
Sept
Dec
108-110 108-112
108-072 108-077
118-280
118-195
118-282
118-197
–6.2 74,705
–6.5 3,150,958
108-105
108-065
–.5 31,564
–1.0 1,459,018
98.845
98.770
… 89,388
–.005 371,624
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
518,140
266,459
332,585
183,907
156,931
191,542
108-100
108-060
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.848
98.780
Sept
Jan'18
98.848
98.785
98.845
98.765
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Sept
Dec
104.094
103.797
Sept
Oct
98.7650
98.7550
104.188 s
103.844
103.734
103.516
103.797
103.484
–.359
–.359
32,774
753
98.7650
98.7600
…
…
2,382
365
100,462
76,960
1 Month Libor (CME)-$3,000,000; pts of 100%
130,436
93,757
Eurodollar (CME)-$1,000,000; pts of 100%
Sept
Dec
March'18
Dec
298,804
144,010
94,966
141,471
107,298
121,893
98.6825
98.5950
98.5600
98.4150
98.7650
98.7550
98.6875
98.6000
98.5600
98.4250 s
98.7650
98.7550
98.6775
98.5800
98.5350
98.3750
98.6800 –.0025 1,358,901
98.5900
… 2,049,161
98.5350 –.0200 1,176,456
98.3800 –.0300 1,640,611
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.9203
.9243
Sept
Dec
.9226
.9265
.9145
.9186
.9152 –.0058 203,696
.9192 –.0058
8,189
Canadian Dollar (CME)-CAD 100,000; $ per CAD
347.00
361.00
Oats (CBT)-5,000 bu.; cents per bu.
232.00
235.00
230.00
233.75
Dec
March'18 239.00 242.00
238.50
242.00
Soybeans (CBT)-5,000 bu.; cents per bu.
Sept
960.50
968.25
960.00
964.50
Nov
967.00
976.75
964.75
971.00
Soybean Meal (CBT)-100 tons; $ per ton.
301.40
305.40
301.10
303.60
Sept
Dec
307.90
310.50
306.00
308.70
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Sept
35.22
35.40
34.91
35.21
Dec
35.38
35.77
35.19
35.56
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1244.50 1244.50
1244.50 1245.50
Sept
Nov
1271.50 1277.50
1264.00 1272.00
Wheat (CBT)-5,000 bu.; cents per bu.
425.00
428.00
421.00
421.75
Sept
Dec
441.00
448.00
439.25
445.75
Wheat (KC)-5,000 bu.; cents per bu.
Sept
415.00
423.00
415.00
423.25
Dec
442.75
449.75
440.25
448.75
Wheat (MPLS)-5,000 bu.; cents per bu.
Sept
614.75
616.25
614.75
628.50
Dec
629.00
645.00
629.00
644.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Sept
142.225 143.750
142.000 143.300
Oct
142.350 144.075
142.225 143.700
Cattle-Live (CME)-40,000 lbs.; cents per lb.
104.700 105.450
104.500 104.700
Oct
Dec
109.500 110.500
109.175 109.800
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
64.000
64.350
63.250
63.550
Oct
Dec
60.450
60.675
59.900
60.275
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Sept
394.00
394.70
389.00
390.00
Nov
385.30
385.80
378.10
379.30
Milk (CME)-200,000 lbs., cents per lb.
Sept
16.32
16.36
16.21
16.34
Oct
16.33
16.42
16.27
16.36
Cocoa (ICE-US)-10 metric tons; $ per ton.
Sept
1,940
1,940
1,940
1,954
Dec
1,951
1,951
1,888
1,917
Coffee (ICE-US)-37,500 lbs.; cents per lb.
127.50
127.50
127.50
126.60
Sept
Dec
128.00
128.85
126.75
127.90
2.50
3.00
1.3041
1.3085
.06
…
5,569
4,133
40,426
1,529
.7963
.7961
.7954
.7950
.7994
.7991
.7985
.7975
–.0002 156,578
–.0003
440
–.0002 10,757
–.0003
219
.05547
.05494
.05533 .00040
1.1923
1.1980
1.1958
1.2015
21,437
1.1910
1.1968
1.1919 –.0008 444,906
1.1976 –.0009 15,846
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
21781
21722
Sept
Dec
21844
21804
21740
21700
21812
21775
S&P 500 Index (CME)-$250 x index
Sept
Dec
2459.30
2462.50
2468.70
2466.30
2456.80
2457.00
Sept
Dec
2460.25
2458.25
2469.00
2467.25
48 147,245
53
2,352
2465.50
2463.70
Mini S&P 500 (CME)-$50 x index
.275 133,270
.425 85,910
542
3,506
.8020
.8015
.8009
.7992 s
.05502
Sept
Dec
3.75
318
3.75 147,765
–6.40
–4.90
1.0456 –.0030
1.0517 –.0031
Euro (CME)-€125,000; $ per €
–8.75
288
2.75 266,664
92,871
68,141
1.0444
1.0507
1.3045 –.0002 212,151
1.3083 –.0002
5,766
Mexican Peso (CME)-MXN 500,000; $ per MXN
129
9,223
–.200
.100
1.0503
1.0564
.7997
.8001
.7988
.7950
Sept
Oct
Dec
March'18
Dec
7,783
17,628
1.3024
1.3062
.0096 193,777
.0094
7,989
Australian Dollar (CME)-AUD 100,000; $ per AUD
.11
2,473
.12 208,074
1.250
1.200
1.3088
1.3125
1.0479
1.0537
Sept
Dec
.80
2,321
.70 190,741
88
42,968
.8177
.8180
Swiss Franc (CME)-CHF 125,000; $ per CHF
4.00
954
2.50 386,099
18.75
15.50
.8056
.8061
British Pound (CME)-£62,500; $ per £
Sept
Dec
4,659
899
–4.00
–5.50
.8246 s
.8242 s
.8083
.8086
Sept
Dec
2.75
2,981
2.50 799,417
2456.50
2454.75
5.80
5.80
2465.50
2463.75
69,320
688
5.75 3,120,167
5.75 196,874
Mini S&P Midcap 400 (CME)-$100 x index
Sept
Dec
1719.80
1719.00
1724.50
1724.20
1716.00
1715.90
1719.10
1718.80
Mini Nasdaq 100 (CME)-$20 x index
5943.5
5946.0
Sept
Dec
5965.8
5972.8
5909.3
5916.5
Mini Russell 2000 (ICE-US)-$100 x index
Sept
Dec
1399.00
1399.80
1407.80
1406.80
1397.90
1398.20
Mini Russell 1000 (ICE-US)-$100 x index
Sept
–20
118
–29 142,092
1366.50
1367.40
1361.90
U.S. Dollar Index (ICE-US)-$1,000 x index
92.20
91.96
Sept
Dec
.10
364
.05 116,554
92.34
92.11
1.60
1.60
5955.0
5962.3
.40 542,778
.60
2,488
1365.60
91.95
91.72
85,390
213
15.8 274,638
15.8
6,761
1401.60
1400.90
1.20
92.25
92.02
8,441
.03
.03
48,568
6,268
Source: SIX Financial Information
September 6, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Inflation
July index
level
Chg From (%)
June '17 July '16
U.S. consumer price index
–0.07
–0.03
244.786
251.936
All items
Core
1.7
1.7
International rates
Latest
Week
ago
1.300 0.960 1.300 0.160
1.020 1.020 1.180 0.250
1.115 1.115 1.140 0.420
Secondary market
Fannie Mae
52-Week
High
Low
Prime rates
30 days
60 days
Other short-term rates
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
1.16
1.12
1.38
0.15
3.00
Six month
One year
1.23
—52-WEEK—
High Low
1.45222 1.45333 1.46544 1.23361
1.70789 1.71178 1.82761 1.53922
Euro Libor
One month
Three month
Six month
One year
3.00
One month
Three month
Six month
One year
52-Week
high
low
-0.401
-0.373
-0.308
-0.210
1.27
-0.371
-0.329
-0.274
-0.163
Latest
-0.401
-0.373
-0.308
-0.208
-0.373
-0.319
-0.205
-0.071
-0.405
-0.378
-0.308
-0.210
-0.372
-0.330
-0.273
-0.161
Value
Traded
-0.366
-0.301
-0.198
-0.053
-0.375
-0.332
-0.274
-0.163
52-Week
High
Low
DTCC GCF Repo Index
3.00
2.25
Treasury
MBS
1.28
0.62
Libor
1.23222 1.23722 1.23889 0.51322
1.31722 1.31611 1.31778 0.83356
1.118 10.800 1.366 0.244
1.129 102.370 1.506 0.257
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
U.S. government rates
Week
ago
Call money
90 days
Overnight repurchase
U.S.
3.300 3.359 3.865 2.832
3.321 3.383 3.899 2.861
Latest
Week
Latest ago
Euro interbank offered rate (Euribor)
30-year mortgage yields
4.25 4.25 4.25 3.50
2.95 2.95 2.95 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
—52-WEEK—
High Low
Treasury bill auction
4 weeks
13 weeks
26 weeks
1.75
1.75
1.00
1.1700
1.3125
1.0500
1.1600
1.1700
1.2000
1.3125
1.1600
1.1700
1.1900
0.3300
0.5625
0.2000
0.2800
0.3000
Federal funds
Effective rate
High
Low
Bid
Offer
1.1700
1.3125
1.0000
1.1600
1.1700
Treasury Sep
Treasury Oct
Treasury Nov
98.835 unch. 2560 1.165
98.810 0.035 2483 1.190
98.810 0.025 1198 1.190
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 June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective June 15, 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;
General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Largest 100 exchange-traded funds, latest session
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
DeutscheXMSCIEAFE
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCI EAFE
AMLP
XLY
XLP
DGP
DZZ
DBEF
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
11.22
90.26
55.28
26.29
5.13
30.07
64.97
24.30
93.29
81.27
67.90
110.41
105.44
124.52
62.75
54.09
59.96
248.61
171.81
69.05
56.42
110.30
92.24
70.76
50.14
12.83
121.13
88.06
116.70
107.54
67.50
66.95
0.36 –11.0
0.62 10.9
6.9
0.42
–1.42 30.7
1.38 –25.2
7.2
0.70
1.63 –13.7
4.5
0.25
7.7
0.35
0.48 17.9
9.1
0.10
2.1
–0.17
0.5
–0.07
1.6
–0.23
0.56 17.0
0.65 27.4
0.67 18.8
0.33 10.5
3.9
0.12
0.4
0.31
0.30 10.0
2.1
–0.11
4.1
0.21
0.24 15.6
0.18 10.9
–0.47 15.8
3.4
–0.35
1.7
–0.07
5.9
–0.19
1.1
–0.10
0.46 14.1
0.62 16.0
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
60.29
44.86
42.09
54.48
334.34
111.46
123.50
137.33
115.63
169.69
139.46
115.77
145.99
192.29
82.94
195.10
142.08
104.98
38.90
114.72
84.66
108.25
127.97
110.19
101.69
145.13
45.24
23.09
37.03
126.81
32.68
59.54
58.96
Wednesday
LBMA Platinum Price PM
*1006.0
Platinum,Engelhard industrial
1014.0
Platinum,Engelhard fabricated
1114.0
Palladium,Engelhard industrial
961.0
Palladium,Engelhard fabricated
1061.0
Aluminum, LME, $ per metric ton
*2082.0
Copper,Comex spot
3.1315
Iron Ore, 62% Fe CFR China-s
77.2
Shredded Scrap, US Midwest-s,w
316
Steel, HRC USA, FOB Midwest Mill-s
624
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
1342.93
1443.65
1337.85
1485.01
*1331.15
*1335.55
1387.36
1400.70
1400.70
1616.40
1310.59
1400.70
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Grains and Feeds
Silver, troy oz.
17.9900
21.5880
17.9950
22.4940
£13.6200
17.7700
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
(U.S.$ equivalent)
0.6050
0.7451
*81.90
n.a.
4.55
4.70
64
3.2350
78.4
474.4
200
88
318
2.8025
370.00
23.75
7.7413
306.10
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
SoybeanMeal,Cent IL,rail,ton48%-u
9.3650
7.3700
4.2800
3.7875
5.0500
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers,dressed 'A'-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
Fibers and Textiles
Metals
Gold, per troy oz
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Other metals
0.8288
0.9811
2.930
2.870
2.420
2.700
2.700
1.320
2.840
53.250
11.500
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
Wednesday
13471
Coins,wholesale $1,000 face-a
167.50
164.40
n.a.
0.8944
2.4400
158.00
164.00
85.25
n.a.
1.2429
1.4714
0.9050
15.05
n.a.
67.24
n.a.
0.9885
n.a.
n.a.
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
36.7500
0.3450
0.3450
0.3455
0.3450
0.3550
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
*Data as of 9/5
Source: WSJ Market Data Group
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.7 U.S. Aggregate
1949.45
Total
return
close
2.400 1.920 2.790
U.S. Corporate Indexes Bloomberg Barclays
1991.83
2.6
Mortgage-Backed
1959.67
2.1
Ginnie Mae (GNMA) 2.640 1.920 3.090
2.660 2.000 3.120
3.070 2.780 3.520
1168.05
2.7
Fannie mae (FNMA) 2.670 2.030 3.120
2625.31
4.1 Intermediate
2.570 2.220 3.010
1798.67
2.8
Freddie Mac (FHLMC) 2.680 2.030 3.130
3810.04
8.4 Long term
4.160 4.000 4.710
524.03
5.0
Muni Master
1.759 1.429 2.516
568.13
4.3 Double-A-rated
2.510 2.130 2.870
367.21
5.7
7-12 year
1.772 1.437 2.618
3.370 3.180 3.870
409.68
6.2
12-22 year
2.249 1.757 3.047
393.98
6.2
22-plus year
2.819 2.190 3.622
5.4
2773.70
U.S. Corporate
5.8
714.58
Triple-B-rated
High Yield Bonds Merrill Lynch
6.3
413.13
High Yield Constrained 5.584 5.399 6.858
Global Government J.P. Morgan†
410.65
6.8
Triple-C-rated
10.554 9.584 13.459
546.40
2846.49
6.1
High Yield 100
5.120 4.948 6.448
752.45
374.97
6.5
Global High Yield Constrained 5.142 5.073 6.450
370.05
Europe High Yield Constrained 2.333 2.249 3.814
710.16
5.5
302.75
511.65
U.S Agency Bloomberg Barclays
1648.65
2.7
U.S Agency
1.730 1.260 1.960
289.04
1472.75
1.8
10-20 years
1.540 1.090 1.750
564.19
2.780 2.430 3.460
940.73
2.640 2.350 3.090
805.98
8.7 20-plus years
3398.62
5.0
2462.95
Yankee
1.8
Global Government 1.320 0.870 1.560
-0.1
Canada
2.040 1.240 2.120
0.3
EMU§
1.089 0.520 1.363
0.5
France
0.820 0.280 1.210
Germany
0.380 -0.100 0.620
Japan
0.360 0.150 0.460
Netherlands
0.530 0.030 0.760
U.K.
1.380 1.030 1.790
-0.6
0.3
-0.4
3.0
9.1 Emerging Markets ** 5.329 5.134 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
0.55
0.65
1.10
0.42
0.39
–0.03
0.20
0.34
0.42
0.07
0.21
0.28
0.28
0.18
0.23
0.03
0.31
0.38
0.21
–0.12
–0.01
–0.24
–0.61
0.15
–0.04
0.30
0.07
0.09
–0.08
–0.51
0.62
0.25
0.32
21.0
28.1
21.6
11.5
26.0
3.0
17.7
10.3
3.2
10.2
3.4
–2.7
9.8
7.5
3.1
7.1
16.7
3.6
4.5
1.4
0.2
3.3
7.4
13.1
0.4
22.5
8.8
–1.2
1.6
15.7
18.1
9.9
10.7
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.250
2.250
1.286
2.060
1.347
2.266
0.730
1.536
1.845 t
2.607 t
l
1.890
1.785
1.513
55.1
60.4
l
2.683
2.631
1.913
50.2
62.3
37.7
France 2 -0.541 t
10 0.658 s
l
-0.540
-0.473
-0.617
-182.6
-134.7
l
0.647
0.758
0.114
-141.3
-142.1
Germany 2 -0.762 s
10 0.349 s
l
-0.779
-0.682
l
0.340
Italy 2 -0.097 s
10 2.017 s
l
l
Japan 2 -0.152 s
10 0.010 s
l
l
0.003
0.064
Spain 2 -0.341 s
10 1.565 s
l
-0.368
-0.326
l
1.531
1.466
0.939
0.179 t
1.007 t
l
0.186
0.255
0.089
l
1.014
1.177
0.561
10
0.500
0.050
2.200
0.100
0.100
2.750
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
l
Australia 2
0.000
Year ago
U.S. 2 1.294 s
10 2.106 s
2.750
1.000
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
1.750
U.K. 2
4.250
10
-183.5
-144.7
78.3
-206.5
-139.6
0.471
-0.666 -205.6
-0.109 -175.7
-172.0
-164.4
-0.105
-0.015
-0.122
-139.1
-139.1
-85.2
1.994
2.021
1.100
-8.8
-0.153
-0.113
-0.189
-144.6
-6.7
-43.6
-143.9
-91.9
-0.021 -209.6
-205.8
-155.7
-0.188
-163.5
-165.4
-91.8
-54.1
-53.0
-59.7
-111.6
-110.0
-64.1
-109.9
-104.6
-97.5
Source: Tullett Prebon
Corporate Debt
Investment-grade spreads that tightened the most…
Spread*, in basis points
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Delphi Financial
Commonwealth Bank of Australia
Ford Motor Credit
Toronto–Dominion Bank
TOMARI
CBAAU
F
TD
7.875 Jan. 31, ’20
2.550 March 15, ’21
3.664 Sept. 8, ’24
1.800 July 13, ’21
60
38
136
29
–81
–11
–11
–10
140
n.a.
n.a.
30
...
...
…
54.45
...
...
…
0.70
Bank of America
Delphi
Statoil Asa
John Deere Capital
BAC
DLPH
STLNO
DE
5.000 May 13, ’21
4.150 March 15, ’24
5.100 Aug. 17, ’40
1.950 June 22, ’20
52
81
113
31
–8
–8
–8
–7
61
n.a.
121
31
23.41
96.73
...
…
0.43
0.14
...
…
Maturity
Current
Last week
…And spreads that widened the most
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Wednesday, September 6, 2017
Closing Chg YTD
Symbol Price (%) (%)
Wednesday
Energy
in that same company’s share price.
DTCC GCF Repo Index Futures
Discount
1.75
Wednesday, September 06, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Week
Latest ago
Cash Prices
3,246
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Agriculture Futures
347.25
362.00
Open
interest
Chg
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Corn (CBT)-5,000 bu.; cents per bu.
343.75
357.50
Settle
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Metal & Petroleum Futures
Sept
Dec
Contract
High hilo
Low
Open
WSJ.com/commodities
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
Closing Chg YTD
Symbol Price (%) (%)
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
218.25
313.70
246.90
89.24
58.31
54.69
24.92
150.06
121.83
92.54
42.60
44.60
56.96
52.13
131.70
151.14
79.22
85.43
88.37
113.42
143.87
102.94
84.32
226.80
80.12
80.20
135.40
82.41
54.89
54.13
126.64
69.61
97.25
62.21
51.63
0.27
0.12
0.34
0.30
0.09
–0.46
–1.54
0.15
0.29
0.19
0.73
0.72
0.78
0.68
0.35
0.46
0.39
–0.22
–0.25
0.32
0.17
0.19
0.26
0.35
...
–0.07
0.18
–0.17
–0.05
0.71
0.28
0.37
0.34
1.07
0.90
10.5
4.0
10.5
4.3
20.6
12.6
19.1
23.5
0.7
8.6
16.6
24.7
18.8
18.0
18.1
19.2
4.6
2.8
3.1
10.8
9.3
5.9
2.2
10.5
0.8
1.0
5.0
2.0
1.1
18.0
9.8
14.1
4.6
8.4
4.2
Bank of America
Citigroup
Morgan Stanley
PacifiCorp
BAC
C
MS
BRKHEC
8.000 Jan. 30, ’49
5.875 March 27, ’49
5.500 July 24, ’20
4.100
Feb. 1, ’42
80
149
76
99
28
16
14
13
65
n.a.
71
n.a.
23.41
67.32
45.07
...
0.43
0.24
0.36
...
Viacom
Bat Capital
Motorola Solutions
PPL Electric Utilities
VIA
BATSLN
MSI
PPL
5.875
3.557
3.500
4.750
328
131
99
105
10
9
9
9
311
126
n.a.
n.a.
38.30
...
85.72
…
1.59
...
–1.08
…
Feb. 28, ’57
Aug. 15, ’27
Sept. 1, ’21
July 15, ’43
High-yield issues with the biggest price increases…
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
EP Energy
Noble Holding International
Transocean
Denbury Resources
EPENEG
NE
RIG
DNR
8.000
6.200
7.500
9.000
Feb. 15, ’25
Aug. 1, ’40
April 15, ’31
May 15, ’21
68.770
63.250
86.900
91.250
CenturyLink
Bristow
Peabody Energy
Freeport–McMoran
CTL
BRS
BTU
FCX
5.800 March 15, ’22
6.250 Oct. 15, ’22
6.000 March 31, ’22
5.450 March 15, ’43
101.540
64.250
103.750
95.500
3.27
Last week
Stock Performance
Close ($)
% chg
68.000
59.250
n.a.
89.500
...
…
8.78
1.10
...
…
–0.11
1.85
99.500
63.750
102.500
92.750
19.00
8.94
30.08
15.06
–2.66
0.79
3.40
1.83
–1.50
–1.38
–1.06
106.500
75.500
86.030
94.250
...
...
...
7.30
...
...
...
–4.95
–1.02
–1.00
–1.00
–1.00
75.500
104.397
57.750
n.a.
13.95
…
...
...
1.31
…
...
...
2.25
1.78
1.50
1.45
1.25
1.25
1.25
…And with the biggest price decreases
Rackspace Hosting
Acosta
Monitronics International
Community Health Systems
RAX
ACOSTA
MONINT
CYH
8.625
7.750
9.125
7.125
Nov. 15, ’24
Oct. 1, ’22
April 1, ’20
July 15, ’20
106.250
73.500
82.625
93.750
Frontier Communications
CCO Holdings
Murray Energy
Safeway
FTR
6.875
CHTR
5.750
MURREN 11.250
SWY
7.450
Jan. 15, ’25
Jan. 15, ’24
April 15, ’21
Sept. 15, ’27
74.980
104.250
57.000
94.000
–2.63
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | B9
BIGGEST 1,000 STOCKS
WSJ.com/stocks
How to Read the Stock Tables
The following explanations apply to NYSE, NYSE
Arca, NYSE MKT and Nasdaq Stock Market listed
securities. Prices are composite quotations that
include primary market trades as well as trades
reported by Nasdaq OMX BXSM (formerly
Boston), Chicago Stock Exchange, CBOE, National
Stock Exchange, ISE and BATS.
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.
Stock
s
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Wednesday, September 6, 2017
Stock
Stock
Net
Sym Close Chg
NYSE
s
s
s
t
s
s
s
s
s
s
ABB
ABB 23.78
AES
AES 11.11
Aflac
AFL 81.68
AT&T
T
36.57
AbbottLabs ABT 51.19
AbbVie
ABBV 77.05
Accenture
ACN 131.12
AcuityBrands AYI 179.90
Adient
ADNT 72.56
AdvanceAuto AAP 95.61
AdvSemiEngg ASX
6.14
Aegon
AEG
5.58
AerCap
AER 49.19
Aetna
AET 158.76
AffiliatedMgrs AMG 172.99
AgilentTechs A
64.71
AgnicoEagle AEM 50.54
Agrium
AGU 99.18
AirProducts APD 144.50
AlaskaAir
ALK 73.68
Albemarle
ALB 118.66
Alcoa
AA
44.43
AlexandriaRealEst ARE 120.39
Alibaba
BABA 168.14
Alleghany
Y
544.06
Allegion
ALLE 80.26
Allergan
AGN 223.61
AllianceData ADS 220.38
AllianceBernstein AB
23.60
AlliantEnergy LNT 42.60
Allstate
ALL 87.50
AllyFinancial ALLY 22.56
AlticeUSA
ATUS 30.29
Altria
MO 63.27
AlumofChina ACH 18.62
Ambev
ABEV 6.45
Ameren
AEE 59.47
AmericaMovil AMX 18.35
AmericaMovil A AMOV 18.22
AmCampus ACC 48.19
AEP
AEP 73.30
AmericanExpress AXP 85.23
AmericanFin AFG 97.50
AmerHomes4Rent AMH 21.88
AIG
AIG 59.47
AmerTowerREIT AMT 146.07
AmerWaterWorks AWK 80.85
Amerigas
APU 42.62
Ameriprise AMP 135.10
AmerisourceBrgn ABC 80.72
Ametek
AME 63.46
Amphenol
APH 80.58
AnadarkoPetrol APC 42.35
Andeavor
ANDV 99.54
AB InBev
BUD 119.45
AnnalyCap
NLY 12.37
AnteroMidstream AM
33.59
AnteroResources AR
19.95
Anthem
ANTM 193.65
Aon
AON 140.23
Apache
APA 40.13
ApartmtInv AIV 45.34
ApolloGlobalMgmt APO 28.58
AquaAmerica WTR 33.62
Aramark
ARMK 40.35
ArcelorMittal MT
26.82
ArcherDaniels ADM 42.40
Arconic
ARNC 24.34
AristaNetworks ANET 172.73
ArrowElec
ARW 77.23
AstraZeneca AZN 30.34
Athene
ATH 52.86
AtmosEnergy ATO 86.73
Autohome
ATHM 65.19
Autoliv
ALV 108.85
AutoZone
AZO 540.65
Avalonbay
AVB 185.53
Avangrid
AGR 47.93
AveryDennison AVY 93.09
AxaltaCoating AXTA 29.02
BB&T
BBT 45.07
BCE
BCE 47.93
BHPBilliton BHP 44.54
BHPBilliton BBL 39.04
BP
BP
35.32
BRF
BRFS 14.41
BT Group
BT
18.83
BakerHughes BHGE 34.74
Ball
BLL 40.00
BancoBilbaoViz BBVA 8.68
BancodeChile BCH 87.26
BancoMacro BMA 106.07
BcoSantChile BSAC 28.81
BancoSantander SAN
6.36
BanColombia CIB 48.34
BankofAmerica BAC 23.41
BankofMontreal BMO 72.79
BankNY Mellon BK
51.27
BkNovaScotia BNS 62.64
Barclays
BCS
9.69
Bard CR
BCR 320.96
BarrickGold ABX 17.85
BaxterIntl
BAX 62.53
0.21
0.02
0.16
-0.52
0.16
1.80
1.35
3.34
0.31
-1.12
0.04
0.05
-0.34
0.50
-1.42
0.42
-0.89
2.02
0.03
0.63
1.99
0.01
-0.06
-1.78
0.45
0.86
-0.17
0.88
0.25
-0.31
1.01
0.14
0.28
0.40
0.06
0.16
-0.39
0.10
0.06
-0.22
-0.79
-0.08
-0.07
-0.13
-0.18
-0.87
0.03
0.53
-0.57
1.03
0.45
0.23
0.87
0.13
0.61
0.04
0.02
0.05
-3.53
-0.12
0.71
0.02
-0.03
0.11
0.04
0.19
0.46
-0.05
-2.50
-0.09
0.27
0.10
-1.29
0.18
-0.50
0.65
-1.15
-0.39
-1.71
-0.11
-0.31
0.44
0.47
0.34
0.37
0.24
-0.06
-0.23
0.01
0.09
-1.22
-1.40
-0.21
0.03
0.87
0.10
0.86
0.07
0.73
-0.02
-0.55
-0.37
0.35
s
s
s
s
s
s
s
s
s
s
Net
Sym Close Chg
BectonDickinson BDX 199.23 -0.84
Berkley
WRB 63.69 0.23
BerkHathwy A BRK/A 265420-324.00
BerkHathwy B BRK/B 176.79 -0.19
BerryGlobal BERY 56.00 -0.27
BestBuy
BBY 55.66 0.40
Bio-RadLab A BIO 216.68 0.70
BlackKnightFin BKFS 43.15 0.40
BlackRock
BLK 412.19 -1.46
BlackstoneGroup BX
32.01 -0.03
BlockHR
HRB 26.00 -0.39
BoardwalkPipe BWP 15.00 0.05
Boeing
BA 234.62 -2.38
BorgWarner BWA 46.42 0.46
BostonProperties BXP 120.93 0.56
BostonScientific BSX 28.22 0.65
Braskem
BAK 25.99 1.15
Bristol-Myers BMY 59.87 0.06
BritishAmTob BTI
62.79 0.64
BrixmorProp BRX 19.10 0.24
BroadridgeFinl BR
78.54 0.24
BrookfieldMgt BAM 38.91 0.25
BrookfieldInfr BIP 42.31 -0.81
Brown&Brown BRO 45.88 0.40
Brown-Forman A BF/A 56.19 0.77
Brown-Forman B BF/B 54.04 0.66
BuckeyePtrs BPL 55.95 -0.34
Bunge
BG
75.60 -0.08
BurlingtonStores BURL 88.05 0.14
CBD Pao
CBD 23.90 1.03
CBRE Group CBG 35.68 -0.31
CBS A
CBS/A 62.84 -1.18
CBS B
CBS 61.98 -1.66
CF Industries CF
31.20 2.12
CGI Group
GIB
51.48 0.30
CIT Group
CIT
44.58 0.30
CMS Energy CMS 48.18 -0.25
CNA Fin
CNA 47.62 0.02
CNOOC
CEO 120.33 0.66
CPFLEnergia CPL 17.46 0.11
CRH
CRH 34.78 -0.13
CVS Health CVS 79.88 1.19
CabotOil
COG 26.92 -0.04
CAE
CAE 16.70 0.12
CamdenProperty CPT 91.98 0.47
CampbellSoup CPB 47.53 0.86
CIBC
CM
85.89 1.80
CanNtlRlwy CNI
81.16 0.91
CanNaturalRes CNQ 32.73 1.01
CanPacRlwy CP 157.90 1.49
Canon
CAJ 34.93 0.33
CapitalOne COF 79.47 0.81
CardinalHealth CAH 68.61 1.09
Carlisle
CSL 95.03 0.88
CarMax
KMX 69.08 0.06
Carnival
CCL 66.96 -0.01
Carnival
CUK 67.51 -0.21
Caterpillar
CAT 116.98 -1.32
Celanese A CE
97.05 0.33
Cemex
CX
9.20 0.05
CenovusEnergy CVE
8.42 0.13
Centene
CNC 88.32 -0.31
CenterPointEner CNP 29.44 -0.18
CentraisElBras EBR
6.10 0.10
CenturyLink CTL 19.00 -0.52
Chemours
CC
47.96 -0.24
Chevron
CVX 111.79 2.35
ChinaEastrnAir CEA 26.85 0.39
ChinaLifeIns LFC 15.67 -0.07
ChinaMobile CHL 52.55 0.42
ChinaPetrol SNP 77.54 0.10
ChinaSoAirlines ZNH 38.28 0.22
ChinaTelecom CHA 51.49 -0.01
ChinaUnicom CHU 14.47 0.08
Chipotle
CMG 317.88 9.56
Chubb
CB 137.71 0.86
ChunghwaTelecom CHT 34.57 -0.02
Church&Dwight CHD 49.82 -0.57
Cigna
CI
182.10 -3.21
CimarexEnergy XEC 102.89 1.15
Citigroup
C
67.32 0.16
CitizensFin CFG 32.77 0.12
Clorox
CLX 136.37 -1.96
Coach
COH 41.52 0.15
Coca-Cola
KO
45.96 0.04
Coca-Cola Euro CCE 43.57 -0.10
Coca-Cola Femsa KOF 80.63 0.51
Colgate-Palmolive CL
71.49 0.38
ColonyNorthStar CLNS 13.05 -0.06
Comerica
CMA 66.88 0.14
SABESP
SBS 10.65 0.28
ConagraBrands CAG 34.24 0.55
ConchoRscs CXO 115.00 1.47
ConocoPhillips COP 45.06 0.67
ConEd
ED
84.05 -0.32
ConstBrands A STZ 202.52 1.43
ConstBrands B STZ/B 202.00 5.22
ContinentalRscs CLR 35.49 0.70
Cooper
COO 241.14 1.23
Corning
GLW 28.58 -0.04
Coty
COTY 16.49 0.11
Credicorp
BAP 206.76 5.78
CreditSuisse CS
14.65 0.20
CrestwoodEquity CEQP 25.35 0.15
CrownCastle CCI 106.01 -1.02
CrownHoldings CCK 58.11 -0.50
Stock
Net
Sym Close Chg
Cummins
CMI 159.48
s DCT Industrial DCT 58.52
s DTE Energy DTE 111.68
DXC Tech
DXC 84.01
Danaher
DHR 84.02
Darden
DRI 78.36
DaVita
DVA 57.42
Deere
DE 116.22
s DellTechnologies DVMT 74.68
DelphiAutomotive DLPH 96.73
DeltaAir
DAL 47.39
DeutscheBank DB
15.99
DevonEnergy DVN 32.68
Diageo
DEO 134.58
DigitalRealty DLR 119.69
DiscoverFinSvcs DFS 58.86
Disney
DIS 101.50
DollarGeneral DG
75.29
DominionEner D
77.99
Domino's
DPZ 182.63
Donaldson
DCI 46.57
DouglasEmmett DEI
38.73
Dover
DOV 85.96
t DowDuPont DWDP 64.87
DrPepperSnap DPS 92.08
DrReddy'sLab RDY 34.12
DukeEnergy DUK 86.99
DukeRealty DRE 29.44
ENI
E
32.28
EOG Rscs
EOG 87.85
EQT
EQT 62.92
EQT Midstream EQM 75.44
EastmanChem EMN 85.07
Eaton
ETN 71.33
Ecolab
ECL 130.89
Ecopetrol
EC
9.43
EdisonInt
EIX
79.55
EdwardsLife EW 112.23
EmersonElectric EMR 59.91
EnbridgeEnPtrs EEP 15.32
Enbridge
ENB 40.81
Encana
ECA
9.51
EnelAmericas ENIA 10.49
EnelChile
ENIC 5.87
EnelGenChile EOCC 25.29
EnergyTrfrEquity ETE 17.84
EnergyTransfer ETP 18.85
EnLinkMidPtrs ENLK 16.19
Entergy
ETR 78.73
EnterpriseProd EPD 26.17
t EnvisionHlthcr EVHC 48.77
Equifax
EFX 141.39
s EquityLife
ELS 90.32
EquityResdntl EQR 67.22
EssexProp
ESS 262.77
s EsteeLauder EL 108.07
EverestRe
RE 227.38
EversourceEner ES
62.61
Exelon
EXC 37.55
ExtraSpaceSt EXR 79.39
ExxonMobil XOM 78.78
FMC
FMC 86.30
FactSet
FDS 157.03
FederalRealty FRT 129.32
FedEx
FDX 211.91
s Ferrari
RACE 116.85
s FiatChrysler FCAU 16.39
s FibriaCelulose FBR 13.76
FidelityNatlFin FNF 45.77
FNFV Group FNFV 16.10
FidelityNtlInfo FIS
92.47
58.com
WUBA 62.88
FirstData
FDC 18.21
FirstRepBank FRC 94.46
FirstEnergy FE
32.30
FleetCorTech FLT 140.36
FomentoEconMex FMX 98.88
FordMotor
F
11.50
ForestCIty A FCE/A 24.40
s Fortis
FTS 37.06
Fortive
FTV 64.73
FortBrandsHome FBHS 63.32
s Franco-Nevada FNV 82.90
FranklinRscs BEN 41.61
Freeport-McMoRan FCX 15.06
FreseniusMed FMS 47.50
GGP
GGP 21.12
Gallagher
AJG 58.18
Gap
GPS 25.82
Gartner
IT
121.34
Gazit-Globe GZT
9.91
GeneralDynamics GD 196.74
GeneralElec GE
24.92
GeneralMills GIS
54.70
GeneralMotors GM
37.67
Genpact
G
28.05
GenuineParts GPC 85.31
Gerdau
GGB
4.08
Gildan
GIL
31.52
GlaxoSmithKline GSK 40.00
GlobalPayments GPN 94.77
GoDaddy
GDDY 43.70
Goldcorp
GG
13.83
GoldmanSachs GS 218.83
Graco
GGG 114.28
Grainger
GWW 163.94
0.41
-0.05
-1.09
-0.43
0.96
-2.83
0.19
0.69
-0.12
0.14
1.55
0.33
0.55
-0.04
0.51
0.42
-0.10
0.93
-0.20
0.13
0.18
0.05
0.96
-0.11
0.26
0.27
-0.42
-0.04
0.36
1.98
0.23
-0.51
-0.20
0.23
-2.34
0.10
-0.71
0.36
1.25
0.18
0.60
0.18
-0.04
0.05
-0.21
0.11
-0.32
-0.05
-1.06
0.36
-2.16
0.29
0.21
0.08
-3.32
0.12
-3.81
-0.34
-0.05
0.99
1.60
0.68
-0.48
1.68
-1.35
0.69
0.86
0.02
-0.64
-0.10
0.26
-0.27
0.13
0.25
-0.22
-0.93
1.93
0.14
0.17
0.19
-0.36
0.68
-0.98
-0.12
0.27
0.42
0.18
0.47
1.79
1.12
0.15
-1.99
0.16
0.98
0.44
-0.12
1.00
0.10
0.44
0.11
-0.08
-1.48
-0.24
1.05
-0.19
2.58
s
s
s
s
GreatPlainsEner GXP 30.53
GpoAeroportuar PAC 108.69
GpoAeroportSur ASR 202.28
GpoAvalAcciones AVAL 9.21
GpFinSantandMex BSMX 10.41
GrupoTelevisa TV
24.97
GuidewireSoftware GWRE 73.23
HCA Healthcare HCA 77.28
HCP
HCP 30.12
HDFC Bank HDB 95.72
HP
HPQ 19.37
HSBC
HSBC 47.58
Halliburton HAL 41.01
Hanesbrands HBI 25.23
HarleyDavidson HOG 46.65
Harris
HRS 122.72
HartfordFinl HIG 52.77
HealthcareAmer HTA 31.37
Heico
HEI
85.37
Heico A
HEI/A 72.40
Herbalife
HLF 69.21
Hershey
HSY 105.29
Hess
HES 41.04
HewlettPackard HPE 13.77
Hilton
HLT 63.67
HomeDepot HD 156.56
HondaMotor HMC 28.08
Honeywell
HON 136.55
HormelFoods HRL 30.85
DR Horton
DHI 36.10
HostHotels HST 17.98
HuanengPower HNP 25.84
Hubbell
HUBB 111.08
Humana
HUM 256.88
HuntingtonIngalls HII 211.60
Huntsman
HUN 26.39
HyattHotels H
58.98
ICICI Bank
IBN
9.19
ING Groep
ING 17.55
Invesco
IVZ
32.05
IDEX
IEX 117.24
IllinoisToolWks ITW 136.90
Infosys
INFY 14.62
Ingersoll-Rand IR
84.39
Ingredion
INGR 123.99
ICE
ICE
65.77
InterContinentl IHG 49.14
IBM
IBM 143.82
IntlFlavors
IFF 139.06
IntlPaper
IP
54.88
Interpublic
IPG
20.55
InvitationHomes INVH 22.60
IronMountain IRM 39.24
IsraelChemicals ICL
4.38
ItauUnibanco ITUB 13.57
JPMorganChase JPM 90.11
Jabil
JBL 30.43
JacobsEngineering JEC 54.49
JamesHardie JHX 14.50
JanusHenderson JHG 33.42
J&J
JNJ 130.67
JohnsonControls JCI
39.62
JonesLangLaSalle JLL 119.34
JuniperNetworks JNPR 27.50
KAR Auction KAR 45.63
KB Fin
KB
44.98
KKR
KKR 18.32
KT
KT
15.27
KSCitySouthern KSU 103.64
Kellogg
K
67.84
KeyCorp
KEY 16.91
KeysightTechs KEYS 40.11
KilroyRealty KRC 68.62
KimberlyClark KMB 120.31
KimcoRealty KIM 20.19
KinderMorgan KMI 19.33
KinrossGold KGC
4.68
Kohl's
KSS 42.37
KoninklijkePhil PHG 39.02
KoreaElcPwr KEP 18.38
Kroger
KR
22.55
Kyocera
KYO 60.11
LATAMAirlines LTM 12.98
L Brands
LB
37.40
LG Display
LPL 14.11
LINE
LN
35.10
L3 Tech
LLL 181.10
LabCpAm
LH 158.48
LambWeston LW
45.32
LasVegasSands LVS 63.26
Lear
LEA 153.04
Leggett&Platt LEG 46.54
Leidos
LDOS 57.96
Lennar A
LEN 50.05
Lennar B
LEN/B 42.11
LennoxIntl
LII
163.25
LeucadiaNatl LUK 22.84
Level3Comm LVLT 53.47
LibertyProperty LPT 42.81
EliLilly
LLY
80.51
LincolnNational LNC 67.16
LionsGate A LGF/A 30.57
LionsGate B LGF/B 29.33
LiveNationEnt LYV 40.22
LloydsBanking LYG
3.29
LockheedMartin LMT 301.45
Loews
L
46.17
Lowe's
LOW 77.47
LyondellBasell LYB 91.72
M&T Bank
MTB 145.16
MGM Resorts MGM 33.77
MPLX
MPLX 34.00
MSCI
MSCI 112.09
Macerich
MAC 54.38
MacquarieInfr MIC 73.40
Macy's
M
22.17
MagellanMid MMP 68.66
MagnaIntl
MGA 48.43
Manpower
MAN 110.25
ManulifeFin MFC 19.55
MarathonOil MRO 11.73
MarathonPetrol MPC 52.37
Markel
MKL 1028.50
Marsh&McLennan MMC 78.97
MartinMarietta MLM 209.11
Masco
MAS 36.80
Dividend announcements from September 6.
Symbol
Yld %
Amount
New/Old
Frq
Payable /
Record
GJT
2.3 .0383 /.03933 M
Oct02 /Oct01
Funds and investment companies
CS X-Links Multi-Asset Hi
DE Enhncd Glbl Div Inco
Delaware Grp Div & Income
Delaware Invest Colo
Delaware Invest Minn
Delaware Invest Ntl Muni
Dividend & Income Fund
Dreyfus Mun Bd Infr Fd
Flaherty & Crumrine
Flaherty & Crumrine Dyn
Flaherty & Crumrine Pfd
Flaherty & Crumrine Pfd
Flaherty & Crumrine TR Fd
iSh Conservative Allocat
iSh Int Rate Hdgd Corp Bd
iSh Int Rate Hi Yield Bd
iSh Interest Rate Hdg 10+
iSh Interest Rate Hdg EM
iSh Yield Optimized Bd
iShrs Mrnngstr Multi Asst
NexPoint Credit Strat Fd
PCM Fund
PennantPark Floatg Rt Cap
PIMCO California Mun II
PIMCO California Mun III
PIMCO California Muni
PIMCO Corporate & Incm
PIMCO Corporate & Incm
PIMCO Dynamic Credit
PIMCO Dynamic Income Fund
PIMCO Global StocksPLUS
PIMCO HiInco
PIMCO Incm Strategy Fd II
PIMCO Inco Str Fd
PIMCO Income Opportunity
Pimco Muni Inc II
PIMCO Muni Inc III
PIMCO MuniFd
PIMCO NY Muni
PIMCO NY Muni II
PIMCO NY Muni III
PIMCO Strat Income Fund
Pioneer Divers Hi Incm Tr
Pioneer Floating Rate Tr
Pioneer High Income Trust
Pioneer Mun Hi Inc Adv Tr
Pioneer Mun Hi Incm Tr
MLTI
DEX
DDF
VCF
VMM
VFL
DNI
DMB
PFD
DFP
FFC
PFO
FLC
AOK
LQDH
HYGH
CLYH
EMBH
BYLD
IYLD
NHF
PCM
PFLT
PCK
PZC
PCQ
PCN
PTY
PCI
PDI
PGP
PHK
PFN
PFL
PKO
PML
PMX
PMF
PNF
PNI
PYN
RCS
HNW
PHD
PHT
MAV
MHI
3.3
5.5
4.6
4.4
3.5
4.4
4.8
4.8
6.6
7.1
6.8
6.8
7.0
1.7
2.2
4.9
2.8
3.8
3.3
2.5
10.8
8.1
8.1
5.5
4.9
5.3
8.0
9.3
8.7
8.7
10.6
11.5
9.0
8.8
8.7
5.8
5.5
5.1
5.2
4.9
5.1
8.7
8.4
6.1
7.9
5.2
5.0
.0784
.0525
.04
.055
.0425
.05
.15
.053
.082
.155
.119
.069
.126
.04753
.17659
.36756
.05853
.08246
.06942
.0528
.20
.08
.095
.0473
.045
.077
.1125
.13
.16406
.2205
.14668
.0807
.08
.09
.19
.065
.05575
.05967
.057
.05069
.04225
.072
.115
.06
.065
.05
.05
M
M
M
M
M
M
Q
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Sep22 /Sep14
Sep29 /Sep15
Sep29 /Sep15
Sep29 /Sep15
Sep29 /Sep15
Sep29 /Sep15
Sep29 /Sep18
Oct02 /Sep19
Sep29 /Sep22
Sep29 /Sep22
Sep29 /Sep22
Sep29 /Sep22
Sep29 /Sep22
Sep11 /Sep07
Sep11 /Sep07
Sep11 /Sep07
Sep11 /Sep07
Sep11 /Sep07
Sep11 /Sep07
Sep11 /Sep07
Sep29 /Sep22
Oct02 /Sep11
Oct02 /Sep20
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Oct02 /Sep11
Sep29 /Sep18
Sep29 /Sep18
Sep29 /Sep18
Sep29 /Sep18
Sep29 /Sep18
Foreign
CS X 2x Alerian MLP ETN
CS XLinks Month Pay 2xLev
Prudentl 6.5% Perp Sub Cp
s
t
s
s
s
s
Net
Sym Close Chg
Mastercard MA 132.89
McCormick MKC 97.54
McCormickVtg MKC/V 96.30
McDonalds MCD 158.22
McKesson
MCK 152.09
Medtronic
MDT 79.87
Merck
MRK 64.00
MetLife
MET 47.95
MettlerToledo MTD 605.47
MichaelKors KORS 42.65
MidAmApt MAA 106.37
MitsubishiUFJ MTU 6.06
MizuhoFin
MFG 3.44
MobileTeleSys MBT 10.37
MohawkIndustries MHK 255.56
MolsonCoors B TAP 88.72
Monsanto
MON 117.54
Moody's
MCO 134.24
MorganStanley MS
45.07
Mosaic
MOS 19.74
MotorolaSolutions MSI 85.72
NRG Energy NRG 23.94
NTTDoCoMo DCM 23.17
NVR
NVR 2704.00
NationalGrid NGG 64.11
NatlOilwell
NOV 31.83
NatlRetailProp NNN 41.90
NewOrientalEduc EDU 83.28
NY CmntyBcp NYCB 11.99
NewellBrands NWL 47.03
NewmontMining NEM 38.38
NextEraEnergy NEE 148.25
NielsenHoldings NLSN 38.98
Nike
NKE 52.76
NiSource
NI
26.79
NobleEnergy NBL 25.22
Nokia
NOK
6.16
NomuraHoldings NMR 5.37
Nordstrom
JWN 46.72
NorfolkSouthern NSC 122.44
NorthropGrumman NOC 265.27
Novartis
NVS 83.86
NovoNordisk NVO 47.84
Nucor
NUE 55.31
NuSTAREnergy NS
40.37
OGE Energy OGE 35.70
ONEOK
OKE 56.34
OccidentalPetrol OXY 61.62
Och-Ziff
OZM 2.86
OmegaHealthcare OHI 32.34
Omnicom
OMC 73.10
Oracle
ORCL 51.01
Orange
ORAN 16.64
OrbitalATK OA 107.80
Orix
IX
79.43
Oshkosh
OSK 73.75
OwensCorning OC
75.20
PG&E
PCG 69.68
PLDT
PHI
33.55
PNC Fin
PNC 123.56
POSCO
PKX 74.05
PPG Ind
PPG 104.20
PPL
PPL 39.12
PVH
PVH 129.11
PackagingCpAm PKG 111.63
PaloAltoNtwks PANW 144.73
ParkHotels PK
26.55
ParkerHannifin PH 160.07
ParsleyEnergy PE
25.34
Pearson
PSO
7.77
PembinaPipeline PBA 32.94
Pentair
PNR 61.74
PepsiCo
PEP 116.35
PerkinElmer PKI
67.59
Perrigo
PRGO 78.33
PetroChina PTR 64.13
PetroleoBrasil PBR 10.01
PetroleoBrasilA PBR/A 9.67
Pfizer
PFE 33.99
PhilipMorris PM 118.62
Phillips66
PSX 83.36
PinnacleFoods PF
59.58
PinnacleWest PNW 89.00
PioneerNatRscs PXD 133.08
PlainsAllAmPipe PAA 21.87
PlainsGP
PAGP 22.72
PolarisIndustries PII
99.78
PostHoldings POST 85.25
Potash
POT 17.67
Praxair
PX 131.77
PrincipalFin PFG 61.29
Procter&Gamble PG
92.72
Progressive PGR 44.94
Prologis
PLD 63.14
PrudentialFin PRU 100.58
Prudential
PUK 46.02
PublicServiceEnt PEG 45.90
PublicStorage PSA 207.89
PulteGroup PHM 25.63
QuestDiag
DGX 107.26
QuintilesIMS Q
96.25
RELX
RENX 21.03
RELX
RELX 22.05
RPM
RPM 48.97
RalphLauren RL
90.55
RaymondJames RJF 76.15
Raytheon
RTN 180.25
RealtyIncome O
58.18
RedHat
RHT 106.34
RegencyCtrs REG 64.72
RegionsFin RF
13.62
ReinsuranceGrp RGA 129.79
RepublicServices RSG 64.47
ResMed
RMD 77.66
RestaurantBrands QSR 60.51
RiceEnergy RICE 27.68
RioTinto
RIO 49.15
RobertHalf RHI 44.39
Rockwell
ROK 162.32
RockwellCollins COL 130.55
RogersComm B RCI
52.26
Rollins
ROL 44.43
RoperTech
ROP 229.59
RoyalBkCanada RY
74.29
RoyalBkScotland RBS
6.44
RoyalCaribbean RCL 118.82
0.23
1.27
0.12
-0.88
4.27
0.05
0.38
0.64
2.22
0.20
-0.12
0.02
0.03
0.40
0.80
-0.16
0.52
1.18
0.16
0.43
-0.94
-0.46
0.17
-0.95
0.04
0.50
-0.08
2.36
0.07
-1.69
-0.37
-2.01
0.17
-0.25
-0.08
0.86
0.06
-0.05
0.52
1.33
-2.80
0.06
0.86
0.52
0.37
0.12
1.49
0.90
-0.05
0.32
1.37
0.08
0.01
-2.20
-0.38
0.01
0.73
-0.16
0.57
-0.23
-0.19
0.76
-0.05
0.61
-0.26
0.70
0.36
0.31
0.08
0.05
0.44
0.17
0.48
0.39
0.27
0.51
0.47
0.45
0.19
0.95
0.12
0.02
-0.69
1.95
0.08
0.04
3.09
-0.52
0.41
1.47
-0.53
...
0.83
-0.37
-0.16
0.08
-0.47
1.23
-0.02
-0.16
-0.70
-0.13
-0.10
0.14
1.05
-0.12
-2.83
-0.14
-0.47
0.20
-0.02
-0.30
-0.16
1.06
-0.18
0.09
0.31
-0.23
-1.09
-0.45
0.28
0.11
0.58
0.97
-0.05
-0.22
Stock
t
s
s
t
s
s
s
s
s
s
s
t
s
s
s
s
s
s
Net
Sym Close Chg
RoyalDutchA RDS/A 56.55
RoyalDutchB RDS/B 57.88
SAP
SAP 106.07
S&P Global SPGI 151.20
SINOPECShanghai SHI
60.64
SK Telecom SKM 23.68
SLGreenRealty SLG 96.54
Salesforce.com CRM 95.82
Sanofi
SNY 49.42
Sasol
SSL 30.95
Scana
SCG 60.03
Schlumberger SLB 65.72
SchwabC
SCHW 38.93
ScottsMiracleGro SMG 93.89
SealedAir
SEE 43.44
SempraEnergy SRE 117.20
SensataTech ST
44.82
ServiceCorp SCI
34.70
ServiceMaster SERV 46.71
ServiceNow NOW 114.68
ShawComm B SJR 22.56
SherwinWilliams SHW 342.96
ShinhanFin
SHG 42.61
Shopify
SHOP 110.22
SimonProperty SPG 158.73
SmithAO
AOS 55.53
Smith&Nephew SNN 36.35
Smucker
SJM 106.21
Snap
SNAP 14.50
SnapOn
SNA 145.70
SOQUIMICH SQM 48.70
Sony
SNE 39.33
Southern
SO
49.28
SoCopper
SCCO 41.24
SouthwestAirlines LUV 51.67
SpectraEnerPtrs SEP 44.59
SpectrumBrands SPB 104.95
SpiritAeroSys SPR 74.37
Sprint
S
8.13
Square
SQ
26.05
StanleyBlackDck SWK 142.53
StarwoodProp STWD 22.07
StateStreet STT 91.63
Statoil
STO 19.20
Steris
STE 86.99
STMicroelec STM 18.02
Stryker
SYK 141.12
SumitomoMits SMFG 7.44
SunCommunities SUI
90.90
SunLifeFinancial SLF 38.31
SuncorEnergy SU
32.54
SunTrustBanks STI
53.82
SynchronyFin SYF 29.96
Syngenta
SYT 92.08
Sysco
SYY 52.91
TAL Education TAL 31.37
TE Connectivity TEL 79.15
Telus
TU
36.49
Ternium
TX
31.27
TIM Part
TSU 18.09
TJX
TJX 73.03
TableauSoftware DATA 72.12
TaiwanSemi TSM 37.27
TargaResources TRGP 45.63
Target
TGT 58.02
TataMotors TTM 30.21
TechnipFMC FTI
26.24
TeckRscsB
TECK 24.20
TelecomArgentina TEO 31.30
TelecomItalia TI
9.29
TelecomItalia A TI/A
7.46
Teleflex
TFX 225.41
TelefonicaBras VIV 15.66
Telefonica
TEF 10.57
TelekmIndonesia TLK 35.43
Tenaris
TS
28.18
Teradyne
TER 35.62
TevaPharm TEVA 15.52
Textron
TXT 48.79
ThermoFisherSci TMO 189.41
ThomsonReuters TRI
45.56
ThorIndustries THO 111.11
3M
MMM 202.05
Tiffany
TIF
93.48
TimeWarner TWX 100.80
Toll Bros
TOL 38.90
Torchmark
TMK 76.05
Toro
TTC 59.54
TorontoDomBk TD
54.45
Total
TOT 52.77
TotalSystem TSS 68.92
ToyotaMotor TM 113.73
TransCanada TRP 50.99
TransDigm
TDG 250.43
TransUnion TRU 48.38
Travelers
TRV 117.73
TurkcellIletism TKC
9.46
TurquoiseHill TRQ
3.32
Twitter
TWTR 16.83
TylerTech
TYL 170.10
TysonFoods TSN 64.95
UBS Group UBS 16.31
UDR
UDR 39.06
UGI
UGI 48.52
US Foods
USFD 27.26
UltraparPart UGP 23.73
UnderArmour A UAA 17.03
UnderArmour C UA
15.80
Unilever
UN
60.07
Unilever
UL
58.78
UnionPacific UNP 105.01
UnitedContinental UAL 60.33
UnitedMicro UMC 2.68
UPS B
UPS 113.81
UnitedRentals URI 121.16
US Bancorp USB 50.91
US Steel
X
27.51
UnitedTech
UTX 109.61
UnitedHealth UNH 198.38
UniversalHealthB UHS 107.47
UnumGroup UNM 47.77
VEREIT
VER
8.61
VF
VFC 63.37
Visa
V
103.18
VailResorts MTN 226.30
0.85
0.85
1.31
-1.98
0.13
-0.29
0.81
-0.36
0.61
0.45
0.18
0.62
0.16
-0.07
-0.79
-0.44
-0.41
-0.54
-0.31
-1.47
0.15
-2.02
0.02
-0.45
1.85
-0.01
0.07
0.13
0.01
1.03
0.70
...
0.12
0.55
0.53
0.32
-1.31
-0.06
-0.05
0.28
0.83
0.07
-0.16
0.09
-0.10
0.25
-0.49
0.04
-0.24
0.13
0.71
-0.02
0.09
0.07
-0.11
0.66
0.03
0.27
0.15
0.04
0.69
0.14
0.42
0.91
0.67
0.06
-0.33
0.40
-0.36
-0.05
-0.05
14.47
...
0.03
0.58
0.34
0.24
0.11
0.09
3.39
0.71
0.37
1.07
1.23
-0.42
0.36
0.18
0.15
0.38
0.58
0.05
0.11
0.62
-3.67
0.49
2.30
0.06
0.02
0.18
-0.46
0.48
0.15
-0.01
-0.52
-0.18
0.39
0.27
0.18
0.63
0.69
0.91
-0.77
-0.02
-0.11
2.07
0.04
0.28
-1.60
-0.93
-0.58
0.19
0.02
-0.58
0.17
-0.05
Wednesday, September 6, 2017
AMJL
REML
PUKpA
27.3
3.2
6.1
.4783
.0811
.40625
M
M
Q
Sep22 /Sep14
Sep22 /Sep14
Sep23 /Sep08
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
Stock
52-Wk %
Sym Hi/Lo Chg Stock
NYSE highs - 110
AbbottLabs
ABT
AbbVie
ABBV
Accenture
ACN
AlgonquinPwr
AQN
Allete
ALE
Ambev
ABEV
BBX CapitalA
BBX
BCE
BCE
BHPBilliton
BHP
BHPBilliton
BBL
BancoBradescoPf BBD
BancoBradesco BBDO
BanColombia
CIB
BkNovaScotia
BNS
Braskem
BAK
BroadridgeFinl
BR
Brown&Brown
BRO
CPFLEnergia
CPL
CamdenProperty CPT
CampingWorld CWH
CarMax
KMX
Catalent
CTLT
Caterpillar
CAT
ConstBrands B STZ/B
ConstBrands A STZ
Credicorp
BAP
DCT Industrial
DCT
DTE Energy
DTE
DarlingIngred
DAR
DellTechnologies DVMT
DianaShippingPfd DSXpB
DominionDiamond DDC
EaglePointNts27 ECCY
EtnVncNatMuniOpp EOT
EquityLife
ELS
EsteeLauder
EL
Ferrari
RACE
FiatChrysler
FCAU
FibriaCelulose
FBR
Fortis
FTS
Franco-Nevada FNV
GOLLinhas
GOL
GabelliEquity
GAB
GasLogPtrsPfdA GLOPpA
GettyRealty
GTY
GlShipLeasePfdB GSLpB
GraniteREIT
GRP/U
GreenDot
GDOT
GpoAvalAcciones AVAL
HudbayMinerals HBM
IamGold
IAG
KenonHoldings KEN
KinrossGold
KGC
KirklandLakeGold KL
KnightTransport KNX
KoninklijkePhil
PHG
Landauer
LDR
LatAmDiscv
LDF
Lear
LEA
51.42
77.46
131.38
11.07
78.12
6.47
7.75
48.25
44.62
39.12
11.08
10.75
48.74
63.22
26.25
78.67
45.97
17.47
92.48
39.45
69.39
42.05
119.19
202.00
202.71
208.05
59.02
113.00
17.82
75.14
23.72
14.17
25.90
23.51
90.80
108.60
118.10
16.46
14.02
37.54
84.64
20.89
6.37
26.70
28.29
22.81
41.65
48.51
9.38
9.35
7.15
16.77
4.74
13.73
41.15
39.12
67.85
12.02
153.41
0.3
2.4
1.0
0.8
-0.3
2.5
5.1
0.9
1.1
0.9
2.1
6.9
1.8
1.2
4.6
0.3
0.9
0.6
0.5
4.1
0.1
0.7
-1.1
2.7
0.7
2.9
-0.1
-1.0
0.1
-0.2
0.2
-0.2
0.4
0.7
0.2
0.1
0.6
5.5
0.1
0.5
-1.2
3.5
1.0
0.6
1.0
1.8
0.8
-1.9
1.2
1.7
-0.3
9.6
-0.2
-2.5
-1.1
0.4
10.4
1.6
1.3
52-Wk %
Sym Hi/Lo Chg Stock
LibertyProperty LPT
LionsGate B
LGF/B
LumberLiqu
LL
MerLynCapTr I MERpK
MicroFocus
MFGP
MohawkIndustries MHK
NavistarIntl
NAV
NextEraEnergy NEP
Norbord
OSB
NorthwestNatGas NWN
NovoNordisk
NVO
OsiskoGoldRoyal OR
OwensCorning
OC
PCM Fund
PCM
PVH
PVH
PolarisIndustries PII
QwestNts2057 CTDD
ScorpioBulkNt19 SLTB
ServiceMaster
SERV
ServiceNow
NOW
SolarisOilfield
SOI
SpiritAeroSys
SPR
Stantec
STN
STMicroelec
STM
SummitMaterials SUM
SunCommunities SUI
SunTrustBksPfA STIpA
SwiftTransport SWFT
Telus
TU
TelecomArgentina TEO
Teleflex
TFX
TelefonicaBras
VIV
TempltnDrgn
TDF
TerrenoRealty
TRNO
ThermoFisherSci TMO
Tidewater
TDW
TorontoDomBk TD
TransUnion
TRU
TravelportWorldwd TVPT
TremorVideo
TRMR
UMHPropPfdC
UMHpC
Unilever
UN
Unilever
UL
VF
VFC
VarianMed
VAR
Vedanta
VEDL
VirtusTRFd
ZF
WEC Energy
WEC
W.P.Carey
WPC
WestlakeChem WLK
XcelEnergy
XEL
43.04
29.40
40.00
26.21
32.19
256.33
36.90
43.40
36.38
67.70
48.08
14.37
75.86
11.85
130.75
100.17
25.85
25.70
47.38
116.70
15.74
74.99
28.55
18.19
30.60
91.87
25.01
29.59
36.94
31.83
227.92
15.80
22.45
37.03
189.49
29.15
54.90
48.62
15.39
3.68
26.40
60.13
58.81
64.51
107.19
20.15
12.99
65.79
70.13
79.13
49.77
0.2
0.3
0.6
...
8.7
0.3
7.0
0.8
4.1
-0.2
1.8
0.1
1.0
0.9
0.5
3.2
0.3
-0.5
-0.7
-1.3
5.9
-0.1
1.4
1.4
0.4
-0.3
...
-1.2
0.7
-1.1
6.9
...
0.7
-0.2
1.8
5.4
0.7
1.0
0.2
2.5
1.0
1.1
1.2
-0.9
0.6
1.2
0.5
...
-0.1
2.2
-0.2
NYSE lows - 24
AllianceOne
AOI
AlticeUSA
ATUS
AIG Wt
AIG/WS
AspenIns
AHL
BrinkerIntl
EAT
CedarRealty6.5%PfC CDRpC
CircorIntl
CIR
DowDuPont
DWDP
9.90
29.82
17.56
40.00
30.13
24.50
46.97
64.01
2.0
0.9
-1.1
-1.2
-0.2
-0.2
0.9
-0.2
Stock
s
s
s
s
t
s
s
52-Wk %
Sym Hi/Lo Chg
0.06 -49.2
EastmanKodakWt KODK/WS
48.26 -4.2
EnvisionHlthcr
EVHC
13.25 -2.0
FivePoint
FPH
12.13 -0.7
HerculesCapital HTGC
5.74 -24.3
CBTCS 01-31
XKE
19.24 2.2
Mosaic
MOS
5.41
...
NaturalGrocers NGVC
0.37 2.5
PacificDrilling
PACD
1.32 -1.5
PatriotNational PN
51.00 2.0
RLI
RLI
Scana
59.09 0.3
SCG
104.37 -1.2
SpectrumBrands SPB
15.22 0.7
TevaPharm
TEVA
13.07 -0.6
TriangleCap
TCAP
44.72 -0.1
Validus
VR
69.47 -3.4
Wabtec
WAB
NYSE Arca highs - 69
ALPSIntlDivDogs IDOG
CSOPFTSEChinaA50 AFTY
ColumbiaEMQualDiv HILO
ColumbiaIndiaSC SCIN
CurrShCAD
FXC
DeutschexFTSEDev DEEF
DeutscheXFTSEEmCmp DEMG
DeutscheXCSI500ChA ASHS
DirexCSI300CnABl2 CHAU
DirexEMBdBull3X EMBU
DirexLatinAmBl3 LBJ
FlexShSelBdFd BNDC
FlexShCurrHdgEM TLEH
FlexGlbUpstmNatRsc GUNR
FlexShIntQuDivDyn IQDY
GlbXBrazilConsumer BRAQ
GlbX BrazilMC
BRAZ
GuggBRIC
EEB
GuggChinaRE
TAO
GuggChinaSC
HAO
GuggFronMkts FRN
GuggS&PHiIncmInfr GHII
IQGlobalResources GRES
iPathAIGCarbon GRN
iShModAllocation AOM
iShEdgeMSCIMlIntSC ISCF
iShJPM EM LC Bd LEMB
iShLatinAmerica40 ILF
iShMSCIAllPeruCap EPU
iShMSCIBrazilCap EWZ
iShMSCICanadaETF EWC
iShMSCIChinaSC ECNS
iShMSCIFrontier100 FM
iShMSCIItalyCapped EWI
iShGlobalUtilities JXI
iShYdOptimizedBd BYLD
JanusVelVolLC
SPXH
JPMDivReturnEurope JPEU
KraneBoseraChinaA KBA
KraneEFdChina KCNY
PwrShCNYDimSum DSUM
PwrShIntlCorpBd PICB
PwrShS&PIntlDev IDHQ
Net
Sym Close Chg
NASDAQ
s
t
s
s
s
Net
Sym Close Chg
Stock
0.12 CheckPointSftw CHKP 111.02 1.00
0.06 ChinaLodging HTHT 113.18 -0.57
0.20 CincinnatiFin CINF 75.12 0.35
CTAS 133.40 0.11
0.09 Cintas
0.65 CiscoSystems CSCO 31.87 0.25
0.20 CitrixSystems CTXS 76.35 -0.64
CGNX 107.18 -0.24
0.24 Cognex
-0.48 CognizantTech CTSH 70.93 0.39
COHR 232.99 4.77
-0.58 Coherent
CMCSA 41.17 0.50
-0.45 Comcast A
0.02 CommerceBcshrs CBSH 53.67 -0.07
0.21 CommScope COMM 32.72 0.31
CPRT 32.40 -0.09
0.02 Copart
-0.19 CoStarGroup CSGP 281.47 -0.72
COST 158.86 -0.28
0.91 Costco
CTRP 50.30
...
0.81 Ctrip.com
s
CyrusOne
CONE 63.18 -0.69
0.02
-0.09 DISH Network DISH 57.60 0.45
-2.44 DentsplySirona XRAY 56.94 0.45
DXCM 75.13 -0.72
0.28 DexCom
-0.05 DiamondbackEner FANG 92.66 0.92
0.19 DiscoveryComm B DISCB 24.80 -0.30
1.01 DiscoveryComm A DISCA 21.86 0.24
-0.57 DiscoveryComm C DISCK 20.63 0.22
DLTR 82.73 0.24
-4.67 DollarTree
ETFC 40.12 0.18
-0.22 E*TRADE
-0.39 EastWestBancorp EWBC 54.92 0.62
EBAY 36.76 0.67
1.38 eBay
SATS 58.04 -0.46
-0.22 EchoStar
s
ElbitSystems
ESLT
139.46 0.66
0.28
0.33 ElectronicArts EA 117.00 -1.21
EQIX 463.52 0.03
-0.17 Equinix
ERIC 5.73 -0.02
1.69 Ericsson
Exelixis
EXEL 28.17 -0.05
-0.03
Expedia
EXPE 144.39 -3.22
-0.05
0.93 ExpeditorsIntl EXPD 56.47 -0.08
-0.31 ExpressScripts ESRX 62.69 0.94
-1.94 F5Networks FFIV 116.58 0.13
FB 172.09 1.37
-0.04 Facebook
FAST 42.37 0.33
0.21 Fastenal
0.06 FifthThirdBncp FITB 25.77 -0.02
Fiserv
FISV 122.41 0.55
0.36
FLEX 16.24 -0.16
0.34 Flex
FTNT 37.40 0.66
-0.99 Fortinet
-1.33 Gaming&Leisure GLPI 38.17 -0.67
Garmin
GRMN 52.11 0.65
-0.09
0.03 GileadSciences GILD 82.95 0.39
GT
30.44 0.03
0.12 Goodyear
GRFS 20.93 0.36
0.25 Grifols
HD
Supply
HDS
33.79 1.10
-0.11
HAS 93.66 -1.86
-0.73 Hasbro
0.36 HenrySchein HSIC 172.44 0.09
HOLX 39.06 0.14
-0.14 Hologic
JBHunt
JBHT 99.09 0.48
1.39
HuntingtonBcshs
HBAN 12.51 0.13
0.22
s IAC/InterActive IAC 115.44 2.25
IdexxLab
IDXX 156.87 1.06
IHSMarkit
INFO 47.35 0.10
-0.02 INC Research INCR 55.25 -3.15
-0.81 IPG Photonics IPGP 172.83 0.91
1.67 IcahnEnterprises IEP
53.18 1.11
1.10 Icon
ICLR 113.58 1.36
-1.05 s Illumina
ILMN 207.42 0.20
-0.52 Incyte
INCY 135.86 0.52
0.72 Intel
INTC 35.76 0.74
0.40 InteractiveBrkrs IBKR 41.66 -0.06
-2.70 Intuit
INTU 141.14 -0.40
0.27 s IntuitiveSurgical ISRG 1022.37 0.93
-0.78 IonisPharma IONS 55.17 0.32
0.54 JD.com
JD
41.64 0.24
-0.64 JackHenry
JKHY 101.49 -0.32
-0.54 JazzPharma JAZZ 148.60 0.98
2.53 JetBlue
JBLU 18.85 -0.31
-0.01 KLA Tencor KLAC 94.50 0.84
2.37 KitePharma KITE 178.12 0.14
0.39 KraftHeinz
KHC 81.33 0.18
1.64 LKQ
LKQ 34.83 -0.06
-0.49 LamResearch LRCX 165.01 0.91
-0.17 LamarAdvertising LAMR 65.08 -0.02
0.25 LibertyBroadbandA LBRDA 102.96 2.15
-0.41 LibertyBroadbandC LBRDK 103.55 2.04
0.38 LibertyGlobal A LBTYA 34.36 0.55
-0.51 LibertyGlobal B LBTYB 34.25 0.65
0.02 LibertyGlobal C LBTYK 33.30 0.46
1.62 LibertyLiLAC A LILA 25.50 0.29
1.67 LibertyLiLAC C LILAK 25.45 0.41
1.53 LibertyQVC B QVCB 22.70 0.36
-0.65 LibertyQVC A QVCA 22.96 0.49
0.81 LibertyVenturesA LVNTA 61.44 0.70
1.05 LibertyFormOne A FWONA 38.08 0.79
-0.90 LibertyFormOne C FWONK 39.04 0.78
0.33 LibertyBraves A BATRA 25.24 0.62
0.05 LibertyBraves C BATRK 25.25 0.48
1.53 LibertySirius A LSXMA 43.30 0.09
-0.47 LibertySirius C LSXMK 43.17 0.02
-0.51 LincolnElectric LECO 85.97 -0.17
0.98 LogitechIntl LOGI 34.96 0.11
2.96 LogMeIn
LOGM 112.80 -0.70
1.22 lululemon
LULU 61.49 -0.07
0.03 MarketAxess MKTX 176.58 -10.89
0.05 Marriott
MAR 101.80 -0.48
0.81 MarvellTech MRVL 17.61 -0.23
0.08 s MatchGroup MTCH 23.27 -0.13
9.18 t Mattel
MAT 15.69 -0.52
Vale
VALE 11.50
ValeantPharm VRX 13.16
ValeroEnergy VLO 68.11
Vantiv
VNTV 70.56
VarianMed
VAR 106.73
Vectren
VVC 66.20
Vedanta
VEDL 20.08
VeevaSystems VEEV 58.24
Ventas
VTR 68.35
Verizon
VZ
46.91
VistraEnergy VST 17.77
VMware
VMW 107.29
VornadoRealty VNO 74.37
VoyaFinancial VOYA 37.38
VulcanMaterials VMC 119.05
WABCO
WBC 141.96
WEC Energy WEC 65.58
W.P.Carey
WPC 69.16
Wabtec
WAB 69.70
Wal-Mart
WMT 80.08
WasteConnections WCN 66.00
WasteMgt
WM 76.13
Waters
WAT 183.91
Wayfair
W
73.06
WellCareHealth WCG 171.34
WellsFargo WFC 49.88
Welltower
HCN 73.67
WestPharmSvcs WST 88.91
WestarEnergy WR 50.43
WesternGasEquity WGP 40.15
WesternGasPtrs WES 51.44
WesternUnion WU 18.51
WestlakeChem WLK 78.33
WestpacBanking WBK 24.86
WestRock
WRK 56.79
Weyerhaeuser WY 33.23
WheatonPrecMetals WPM 20.63
Whirlpool
WHR 170.20
Williams
WMB 30.11
WilliamsPartners WPZ 39.75
Wipro
WIT
5.98
WooriBank WF
44.85
Workday
WDAY 108.50
Wyndham
WYN 97.61
XPO Logistics XPO 60.59
XcelEnergy XEL 49.56
Xerox
XRX 32.15
Xylem
XYL 62.02
YPF
YPF 20.40
YumBrands YUM 76.21
YumChina
YUMC 35.93
ZTO Express ZTO 13.90
ZayoGroup ZAYO 34.30
ZimmerBiomet ZBH 115.63
Zoetis
ZTS 63.39
AGNC Invt
AGNC 21.25
Ansys
ANSS 127.68
ASML
ASML 156.48
Abiomed
ABMD 151.61
ActivisionBliz ATVI 64.00
AdobeSystems ADBE 153.76
AkamaiTech AKAM 46.89
AlexionPharm ALXN 145.12
AlignTech
ALGN 176.63
Alkermes
ALKS 49.81
AlnylamPharm ALNY 86.02
Alphabet A GOOGL 942.02
Alphabet C GOOG 927.81
Altaba
AABA 63.32
Amazon.com AMZN 967.80
Amdocs
DOX 63.82
Amerco
UHAL 379.69
AmericanAirlines AAL 44.31
Amgen
AMGN 178.38
AnalogDevices ADI 82.51
Apple
AAPL 161.91
AppliedMaterials AMAT 44.73
ArchCapital ACGL 94.73
AthenaHealth ATHN 139.67
Atlassian
TEAM 34.39
Autodesk
ADSK 113.79
ADP
ADP 108.05
Baidu
BIDU 226.97
Biogen
BIIB 317.36
BioMarinPharm BMRN 89.84
Bioverativ
BIVV 56.42
bluebirdbio BLUE 126.50
BrighthouseFin BHF 53.18
Broadcom
AVGO 249.38
CA
CA
33.07
CBOE Holdings CBOE 103.73
CDK Global CDK 63.45
CDW
CDW 59.86
CH Robinson CHRW 72.77
CME Group CME 128.42
CSX
CSX 50.21
CadenceDesign CDNS 38.27
Carlyle
CG
20.70
Celgene
CELG 140.16
Cerner
CERN 67.63
CharterComms CHTR 402.50
Stock
t
s
s
s
s
Net
Sym Close Chg
MaximIntProducts MXIM 46.56
MelcoResorts MLCO 22.66
MercadoLibre MELI 257.88
MicrochipTech MCHP 86.12
MicronTech MU
32.25
Microsemi
MSCC 49.44
Microsoft
MSFT 73.40
Middleby
MIDD 120.42
Momo
MOMO 37.60
Mondelez
MDLZ 40.59
MonsterBeverage MNST 56.33
Mylan
MYL 32.24
NXP Semi
NXPI 112.16
Nasdaq
NDAQ 74.19
NationalBeverage FIZZ 120.20
NetApp
NTAP 38.85
Netease
NTES 271.07
Netflix
NFLX 179.25
NewsCorp A NWSA 13.39
NewsCorp B NWS 13.65
Nordson
NDSN 109.48
NorthernTrust NTRS 86.59
NorwegianCruise NCLH 57.12
NVIDIA
NVDA 165.81
OReillyAuto ORLY 202.28
OldDomFreight ODFL 100.11
ON Semi
ON
16.56
OpenText
OTEX 32.01
PTC
PTC 55.91
Paccar
PCAR 65.24
Paychex
PAYX 57.20
PayPal
PYPL 61.24
People'sUtdFin PBCT 16.45
PilgrimPride PPC 28.74
Priceline
PCLN 1842.45
Qiagen
QGEN 31.71
Qorvo
QRVO 73.32
Qualcomm
QCOM 50.45
RandgoldRscs GOLD 103.92
RegenPharm REGN 500.22
RossStores ROST 59.15
RoyalGold
RGLD 92.25
Ryanair
RYAAY 115.58
SBA Comm SBAC 150.50
SEI Investments SEIC 56.20
Sina
SINA 108.39
SS&C Tech SSNC 38.69
SVB Fin
SIVB 167.84
ScrippsNetworks SNI
85.45
Seagate
STX 32.79
SeattleGenetics SGEN 51.90
Shire
SHPG 155.40
SignatureBank SBNY 125.86
SiriusXM
SIRI
5.60
Skyworks
SWKS 106.17
Splunk
SPLK 67.99
Staples
SPLS 10.24
Starbucks
SBUX 54.31
SteelDynamics STLD 34.16
Stericycle
SRCL 70.50
Symantec
SYMC 29.60
Synopsys
SNPS 80.00
TD Ameritrade AMTD 42.97
TESARO
TSRO 129.77
T-MobileUS TMUS 63.79
TRowePrice TROW 82.78
TakeTwoSoftware TTWO 95.82
Tesla
TSLA 344.53
TexasInstruments TXN 82.07
TractorSupply TSCO 60.02
Trimble
TRMB 38.61
TripAdvisor TRIP 44.31
21stCenturyFoxA FOXA 26.43
21stCenturyFoxB FOX 25.97
UltaBeauty ULTA 228.00
UltimateSoftware ULTI 194.96
UnitedTherap UTHR 135.03
UniversalDisplay OLED 128.95
VCA
WOOF 92.97
VEON
VEON 4.18
VeriSign
VRSN 102.79
VeriskAnalytics VRSK 81.06
VertxPharm VRTX 157.08
Viacom A
VIA 38.30
Viacom B
VIAB 28.22
Vodafone
VOD 28.52
WPP
WPPGY 91.89
WalgreensBoots WBA 81.76
Weibo
WB 102.34
WesternDigital WDC 89.56
WillisTwrsWatson WLTW 147.62
WynnResorts WYNN 143.38
Xilinx
XLNX 64.11
Yandex
YNDX 32.10
Zillow A
ZG
39.08
Zillow C
Z
38.80
ZionsBancorp ZION 42.61
0.12
0.46
1.25
-0.37
0.18
-0.08
-0.21
-0.82
-0.33
-0.14
-0.02
0.65
-0.26
-0.19
0.62
0.87
1.99
4.73
0.11
0.10
0.33
0.08
0.43
-0.10
1.90
-0.13
-0.24
0.17
-0.02
-0.05
0.49
-0.03
0.05
0.21
-0.44
-0.22
-0.06
0.42
-1.55
5.86
0.32
-1.99
1.15
-0.66
-0.40
2.55
-0.05
0.66
0.24
0.04
0.02
2.93
0.57
0.01
-0.76
0.66
-0.01
-0.82
-0.03
0.16
-0.21
-0.01
0.47
-4.56
0.15
...
-1.27
-5.06
0.22
0.64
0.08
-0.24
-0.15
-0.12
4.10
-3.93
1.50
-0.75
0.01
0.05
0.25
0.44
-1.99
0.60
0.79
0.13
0.08
0.30
-0.56
0.06
0.15
0.88
-0.40
-0.25
-0.29
-0.24
-0.15
NYSE AMER
43.53 -0.17
28.04 0.34
25.38 0.18
30.61 0.47
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil
IMO
IPO Scorecard
Performance of IPOs, most-recent listed first
% Chg From
Wed3s Offer 1st-day
close ($) price close
Company SYMBOL
IPO date/Offer price
14.53
Ranger Energy Svcs
RNGR Aug. 11/$14.50
YogaWorks
YOGA Aug. 11/$5.50
Zealand Pharma
ZEAL Aug. 9/$17.87
Venator Materials
VNTR Aug. 3/$20.00
4.29
0.2
2.2
–22.0 –11.5
20.15
12.8
13.1
20.70
3.5
0.2
Clementia Pharmaceuticals 16.55
CMTA Aug. 2/$15.00
10.3
1.2
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
Redfin
RDFN July 28/$15.00
Sienna Biopharmaceutic
SNNA July 27/$15.00
RBB Bancorp
RBB July 26/$23.00
PetlQ
PETQ July 21/$16.00
25.86
72.4
19.2
24.30
62.0
26.2
23.05
0.2
–1.3
25.84
61.5
10.8
Calyxt
CLXT July 20/$8.00
20.28
153.5
80.3
Sources: WSJ Market Data Group; FactSet Research Systems
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT 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.
Reduced
STRATS Tr Allstate 2006-3
-0.19
0.86
2.35
0.11
0.21
0.03
-2.05
-1.03
-0.05
1.62
0.13
-0.08
1.18
0.55
0.72
-0.17
-0.11
0.16
-0.10
-0.55
0.24
0.63
0.98
-0.27
0.07
3.63
0.03
0.04
0.15
0.39
0.36
0.21
-0.21
-0.67
-1.74
-0.31
0.34
...
0.15
-0.21
...
0.45
-0.03
-0.39
0.01
0.82
-0.40
0.78
-0.20
0.09
0.34
-0.33
-0.32
0.04
0.47
0.60
-0.44
0.11
0.28
...
0.77
-0.38
-0.90
0.33
0.58
0.41
-0.04
-0.05
0.92
1.44
0.12
0.14
0.52
-2.60
0.39
-0.02
-0.01
1.98
0.15
-0.17
0.12
0.14
0.11
0.72
-0.13
-0.02
-1.75
1.48
-0.42
0.60
1.93
0.82
0.16
-0.99
-0.45
-2.89
-0.26
-0.65
0.08
0.69
0.31
0.09
0.10
-0.02
0.02
-0.75
0.33
1.79
2.33
-0.29
0.63
-0.05
-1.04
1.03
-0.10
1.16
0.96
0.31
-1.31
0.16
0.44
0.58
6.39
0.88
1.31
0.15
Stock
New Highs and Lows | WSJ.com/newhighs
Dividend Changes
Company
s
Net
Sym Close Chg
52-Wk %
Sym Hi/Lo Chg Stock
PwrShS&PIntlDev IDMO
ProShDJBrkGlIn TOLZ
REXGoldHdgS&P500 GHS
SPDRBloomBarEMLoBd EBND
SPDRCitiIntGovBd WIP
SPDREUROSTOXXSC SMEZ
SPDRS&PGlbNatRes GNR
SPDRSSgAIncmAllctn INKM
SPDREmMktSmlCp EWX
SpdrSPIntDiv
DWX
USGlbGOGold
GOAU
VanEckBrazilSC BRF
VanEckSMEChiNxt CNXT
VanEckEM AggBd EMAG
VanEckJPMEMLCBd EMLC
VanEckNatRscs HAP
VanEckRareEarth REMX
VanEckSolarEner KWT
VangdAWxUSSC VSS
WBITacticalIncome WBII
WisdTrEM LocDebt ELD
WisdTrBrazilReal BZF
WisdTrEmgCurr CEW
WisdTrEM SC
DGS
WisdTrGlbxUSREFd DRW
WisdTrIntDivxFin DOO
26.77 1.3 Calyxt
44.12 0.3 Celgene
32.59 -0.2 ChinaInternet
30.25 0.3 ClearBrDivStrat
58.44 0.3 ConstellationAlphaCap
60.92 0.8 Control4
45.41 1.0 CovenantTranspt
33.20 0.4 CryoPortWt
50.37 0.4 CryoPort
40.93 0.5 CyrusOne
13.87 -0.7 Descartes
25.09 2.2 EXACT Sci
35.07
... ElbitSystems
21.98 1.0 Exponent
19.53 0.2 ExtremeNetworks
34.72 0.9 FNBBancorp
24.55 3.5 FarmersBancp
45.39 1.3 FTBrazilAlphaDEX
113.80 0.4 FT CanadaAlpha
25.73
... FT DevMktsXUS
39.41 0.4 FT EM Alphadex
19.28 0.7 FTEurozoneAlpha
19.27 0.4 FT GerAlpha
49.79 0.6 FT NasdGlblAuto
31.68 0.9 FlexShRealAsset
42.49 0.9 G1Therapeutics
NYSE Arca lows - 12
27.61 0.8
17.38 -0.1
DirexCSI300CnA CHAD
15.30 2.0
20.61 1.6 DirexJrGoldMinBr3 JDST
81.31 1.3 DirexRussiaBr3 RUSS
28.38 0.7 GlbXMSCIPakistan PAK
29.38 0.1 iShiBondsDec2017Cp IBDJ
REK
37.01 0.3 ProShShtRE
27.51 0.3 ProShUltShGoldMin GDXS
ProShrUSHlthCr
RXD
26.33 0.4
36.90 6.5 ProShrUltraBrazil BZQ
ProShrUSRlEst
SRS
25.53 1.2
USOD
29.91 0.3 US3xShrtOilFd
31.24 0.9 WisdTrUSDBull USDU
27.75 0.9
17.81 3.1
11.59 1.3
AltisourceAsset AAMC
36.53 1.0
AmericasSilver USAS
28.57 0.7
CisionWt
CISN/WS
28.44 1.1
14.57 0.5
29.00 1.8
27.03 0.4 AdCareHealth
ADK
8.44 7.7 ContangoO&G
MCF
37.79
... Inuvo
INUV
30.20 0.8 TransAtlPetrol
TAT
48.98 0.2 Versar
VSR
35.57 2.0
38.51 1.3
42.07 2.2
28.41 1.1 AeroVironment AVAV
AKCA
49.32 1.2 AkceaTherap
ALGN
30.90 0.2 AlignTech
AnaptysBio
ANAB
30.67 1.2
ANIK
52.22 0.1 AnikaTherap
APPF
25.83 -0.1 AppFolio
APPN
36.82 0.3 Appian
59.45 0.3 AudentesTherap BOLD
AXGN
33.90 0.4 AxoGen
BPMC
35.11 0.3 BlueprintMed
BoingoWireless
WIFI
23.74 0.1
27.48 0.3 CBOE Holdings CBOE
CME
23.13 0.7 CME Group
52-Wk %
Sym Hi/Lo Chg Stock
32.72
41.81
25.21
14.25
24.79
16.03
12.32
32.14
9.12
29.98
21.18
25.42
-0.1
4.3
-4.2
-1.0
...
-0.1
2.8
-1.2
-4.5
-0.3
-11.2
-0.2
NYSE American highs - 3
116.00 9.8
4.98 3.6
2.87 12.0
NYSE American lows - 5
0.86
4.26
0.91
0.66
0.65
3.2
-1.6
-1.1
-2.9
-12.8
Nasdaq highs - 106
51.04
24.68
180.36
31.00
55.21
43.85
25.26
22.89
18.25
56.93
21.37
104.10
129.31
-2.1
7.1
-1.5
3.9
2.8
1.2
5.0
1.7
-0.3
-3.6
-2.9
1.5
2.4
Galapagos
Gogo
GriffinIndlRealty
GpoFinGalicia
HeartlandExp
HimaxTechs
IAC/InterActive
IXYS
Illumina
Inogen
Insmed
IntecPharma
IntersectENT
IntuitiveSurgical
iPath2yearBull
iShGlbTimber
iShMSCIBrazilSC
KratosDefense
LandstarSystem
LeggMasonGlbInfr
LigandPharm
MER Telemgmt
MartenTransport
MatchGroup
MelroseBancorp
MonsterBeverage
MyriadGenetics
NatlResearch A
NeoGenomics
Neurocrine
OakValleyBncp
OpiantPharm
OramedPharms
Orbotech
OrigoAcquisition
PTC Therap
PatternEnergy
pdvWireless
PwrShDWA DevMkt
PwrShDWA EM
PwrShDWAMom
PwrShS&PSC Util
PrincipalHlthInnov
Pro-Dex
CLXT
CELG
CIFS
YLDE
CNAC
CTRL
CVTI
CYRXW
CYRX
CONE
DSGX
EXAS
ESLT
EXPO
EXTR
FNBG
FMAO
FBZ
FCAN
FDTS
FEM
FEUZ
FGM
CARZ
ASET
GTHX
GLPG
GOGO
GRIF
GGAL
HTLD
HIMX
IAC
IXYS
ILMN
INGN
INSM
NTEC
XENT
ISRG
DTUL
WOOD
EWZS
KTOS
LSTR
INFR
LGND
MTSL
MRTN
MTCH
MELR
MNST
MYGN
NRCIA
NEO
NBIX
OVLY
OPNT
ORMP
ORBK
OACQ
PTCT
PEGI
PDVW
PIZ
PIE
DWLV
PSCU
BTEC
PDEX
20.93
140.53
13.48
25.85
9.78
25.64
25.50
5.05
8.75
64.31
28.65
42.90
139.84
69.35
11.74
31.66
82.00
17.77
25.04
40.59
26.95
41.65
46.97
38.19
28.25
25.72
97.02
14.41
35.30
47.90
22.75
11.97
115.96
23.18
209.42
98.91
29.63
7.25
32.50
1029.00
65.27
64.31
17.19
13.93
95.45
30.09
133.98
1.99
17.95
23.99
18.75
57.25
33.20
33.70
10.87
60.00
16.49
44.43
9.74
41.09
10.81
22.00
25.60
32.15
26.60
19.13
29.21
55.00
30.46
7.30
5.6
0.6
3.0
0.7
0.4
2.8
0.9
15.6
6.1
-1.1
-0.2
2.5
0.5
1.5
-1.9
1.0
7.4
1.8
1.6
0.3
0.6
0.7
1.4
1.0
0.8
19.7
1.0
1.2
2.3
1.4
-0.2
-2.7
2.0
1.1
0.1
1.1
8.8
3.3
...
0.1
1.1
0.8
2.2
-2.0
-0.5
0.5
2.0
2.8
-0.3
-0.6
0.8
...
7.4
1.7
3.5
1.1
0.9
17.5
5.5
-0.8
...
-2.0
0.2
1.0
0.6
0.5
-0.5
-1.3
0.8
5.1
52-Wk %
Sym Hi/Lo Chg
PumaBiotech
PBYI
QAD A
QADA
Qualys
QLYS
RadNet
RDNT
RoyalGold
RGLD
Sina
SINA
SMART Global SGH
Saia
SAIA
SunHydraulics
SNHY
SupernusPharms SUPN
Tantech
TANH
TechTarget
TTGT
TiGenix
TIG
TymeTechs
TYME
UniversalDisplay OLED
Verastem
VSTM
WestportFuelSys WPRT
WisdTrChinaxSOE CXSE
WisdTrEM CpBd EMCB
XOMA
XOMA
ZAGG
ZAGG
ZK Intl
ZKIN
Zogenix
ZGNX
100.10
34.05
49.05
11.20
94.39
109.71
22.76
58.40
51.05
47.90
3.51
10.60
23.51
8.99
133.50
5.55
2.85
76.30
73.35
16.73
13.00
10.50
16.10
2.3
0.6
0.4
7.2
-2.1
2.4
7.2
1.0
5.8
-0.6
2.7
-2.3
-0.1
19.3
-0.6
28.1
1.7
0.9
0.4
-0.6
0.4
8.3
12.7
Nasdaq lows - 45
10.33 -0.2
Aceto
ACET
111.54 -0.6
AllegiantTravel ALGT
40.06 2.4
Ambarella
AMBA
11.36 2.4
AmTrustFinSvcs AFSI
AquaMetals
6.30 -2.2
AQMS
28.80 -2.7
BJsRestaurants BJRI
...
Baldwin&Lyons B BWINB 21.25
2.85 -1.6
BlackBox
BBOX
52.94 -1.7
BrighthouseFin BHF
97.86 -0.5
BuffWildWngs BWLD
0.58 -4.9
CapstoneTurbine CPST
99.76 1.6
CaseysGenStores CASY
39.13 -2.8
Cheesecake
CAKE
8.01 -3.4
ChickenSoupEntA CSSE
18.13 -0.5
Chuy's
CHUY
6.05 4.1
Conifer
CNFR
0.28 -9.8
CytoriTherap
CYTX
1.15 -10.2
DelMarPharm
DMPI
5.81 -1.3
DepoMed
DEPO
0.41
...
DianaContainer DCIX
3.40 -1.4
Digirad
DRAD
12.51 -2.3
FederatedNatl
FNHC
3.10 -3.1
Harmonic
HLIT
KBLMergerIVRt KBLMR
0.27
...
LM Funding
2.15 -17.2
LMFA
6.40 0.4
MaidenHoldings MHLD
15.60 -3.2
Mattel
MAT
2.04 -8.1
MidatechPharma MTP
40.22 -0.3
Mondelez
MDLZ
13.41 -1.2
MonroeCapital
MRCC
12.76 -3.8
NatlSecurity
NSEC
0.27 0.7
NetElement
NETE
1.06 -5.9
NovaLifestyle
NVFY
6.90
...
NovelionTherap NVLN
0.93
...
OHAInvestment OHAI
3.15 -5.2
Otonomy
OTIC
5.43 -1.6
RichardsonElec RELL
30.32 -1.3
SpiritAirlines
SAVE
15.60 -5.4
SpokHoldings
SPOK
57.22 0.2
StericyclePfdA
SRCLP
0.40 4.3
TOP Ships
TOPS
10.43 -16.3
trivago
TRVG
VistaGenTherap VTGN
1.56 5.4
0.86 -1.0
Vivus
VVUS
13.05 -4.0
WaysideTech
WSTG
THE WALL STREET JOURNAL.
B10 | Thursday, September 7, 2017
BANKING & FINANCE
Burger Chains Crave IPO
Bobby’s Burger Palace
and Fat Brands plans
come at challenging
time for the sector
BY JULIE STEINBERG
AND ANJANI TRIVEDI
BYRON SMITH FOR THE WALL STREET JOURNAL
BY JULIE JARGON
AND CORRIE DRIEBUSCH
Two gourmet hamburger
chains are betting investors
will have an appetite for their
companies’ shares, even as
America’s hunger for fancy
burgers is waning.
Los Angeles-based Fat
Brands, parent of the 162-unit
Fatburger chain, said it wants
to raise $24 million from an
initial public offering, according to regulatory filings made
with the Securities and Exchange
Commission
on
Wednesday. It said it wants to
use part of the IPO proceeds to
fund a planned $10.6 million
purchase of the Ponderosa and
Bonanza Steakhouse chains
owned by Metromedia Restaurant Group, retire debt and
finance future acquisitions.
Bobby’s Burger Palace, a
17-unit chain owned by New
York-based celebrity chef
Bobby Flay, has said publicly it
wants to raise up to $15 million in a flotation to fund domestic and international expansion. It hasn’t filed
paperwork with the SEC and
declined to provide further details.
The plans come amid struggles for fast-casual burger restaurants, which face fierce
competition and tightened
consumer spending.
Kathleen Smith, principal at
Renaissance Capital, an IPO investment advisory firm, said
fast-casual restaurants that
have gone public in recent years
have “really underperformed,
and it’s going to be challenging
when it comes to generating investor enthusiasm.”
Shake Shack Inc., the burger
joint that went public in January 2015, has seen declining
consumer traffic. Shares of
Shake Shack rose 119% on their
first day of trading from their
IPO price of $21, closing that
day at $45.90. On Wednesday,
Shake Shack shares closed at
$31.11.
Habit Restaurants Inc., another publicly traded fast-casual burger chain, reported a
second-quarter
same-store
Fatburger’s XXXL burger. Parent Fat Brands wants to raise $24 million in an initial public offering.
sales increase of just 0.1% amid
what it called a “choppy consumer environment.”
While Shake Shack and Habit
did traditional IPOs, Fatburger
and Bobby’s are looking to go
public under federal rules,
known as Regulation A+, that are
intended for small businesses.
Reg A+ allows companies to
raise up to $50 million by removing some hurdles and regulatory requirements.
In doing so, it has the potential to open investors up to
more risk, say some bankers
and analysts. June was the
first time a company used the
provision to list on a national
exchange, and since then several more companies have
tried to follow.
Last year was the slowest
for U.S.-listed IPOs since 2003
in terms of money raised, according to data provider Dealogic.
In 2017, things have perked
up, but there have been recent
disappointing performances by
some recent offerings, such as
Blue Apron Holdings Inc. and
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The chain already owns 19
Buffalo’s Café chicken wings
restaurants and 66 smaller
Buffalo’s Express restaurants
that are located together with
Fatburgers.
In its filing, Fat Brands
spelled out Mr. Wiederhorn’s
previous legal troubles. He formerly pleaded guilty to one
count of filing a false tax return and of violating the Employee Retirement Income Security Act of 1974 with regard
to a company he previously led.
He served a 14-month sentence
in 2004-2005 and paid $2 million in fines and restitutions.
Fat Brands plans to launch
its formal pitch to investors
next week and close the offering by the end of September,
according to Mark Elenowitz,
chief executive of TriPoint
Global Equities, which is underwriting Fat Brands’ offering.
Fatburger said it plans to
list on the Nasdaq Stock Market. Bobby’s said it hopes to list
on the New York Stock Exchange.
Burger Blues
Traffic to burger restaurants,
change from a year earlier
'Fast casual'
'Quick service'
20%
15
10
5
0
–5
2012 ’13
’14
’15
’16
’17
Note: Data are for the 12-month period ending
in June of each year. ‘Fast casual’ includes
places like Fatburger, Bobby’s Burger Palace
and Shake Shack. ‘Quick service’ includes
Burger King and McDonald’s.
Source: NPD Group
THE WALL STREET JOURNAL.
Snap Inc. Some analysts say
that could cause a chill in the
IPO market for the second half
of the year.
Fat Brands Chief Executive
Andrew Wiederhorn said in an
interview that he plans to diversify beyond burgers.
%%%&'()&*+,-
BY P.R. VENKAT
AND SAURABH CHATURVEDI
real-estate investment trust
later this year, the people said.
The new company, based in
Singapore, would have an initial portfolio of close to a
dozen properties, including office buildings in Seattle, Houston, Denver and other U.S. cities, said the people.
The company would be the
second Singapore-listed REIT
to give investors in the citystate exposure to U.S. commercial properties. Last year, Canadian insurer Manulife
Financial Corp. raised $470
million with a Singapore list-
SINGAPORE—KBS Realty
Advisors LLC, an Americanreal-estate investment firm, is
planning to raise about $500
million via a Singapore initial
public offering of some of its
U.S. office assets, people familiar with the matter said.
The Newport Beach, Calif.,
company is in talks with the
asset-management arm of
Singapore conglomerate Keppel Corp. to form a joint venture that they plan to list as a
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Data provided by
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t
reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous
trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return
annualized.
BUSINESS FOR SALE
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
Fund
Net YTD
NAV Chg % Ret
A
! "" #
$ % & FOR SALE
California C Corporation with
$5,600,000 of federal and state
loss carry-forwards expiring in
2017. Save $2,500,000 in taxes.
Call 203-879-2009,
ftownsend@snet.net
BUSINESS OPPORTUNITIES
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Blacktop Highway. Located Mill Spring, MO
Asking $3.7MM outright or $2MM 50% share.
Call (573) 776-3292
Email: johntomwebb@gmail.com
Goldman Sachs Group Inc.
has stopped working on the
potential listing of a Chinese
company owned by HNA
Group Co. because of concerns
about the conglomerate’s ownership structure, according to
a person familiar with the
matter.
Goldman in recent months
was tapped by HNA to arrange
financing for Pactera Technology International Ltd., a
Beijing-based
informationtechnology outsourcing firm,
ahead of a planned initial public offering.
However, the New York
bank last month told potential
investors in the fundraising
that it was suspending work
on the financing and on the
IPO itself, the person said. A
timetable and a venue for the
offering had yet to be determined, the person said.
Goldman’s bankers have
privately raised concerns
about HNA’s ownership structure, and the Chinese company
hasn’t provided enough information to satisfy the lender’s
concerns, according to people
familiar with the matter.
Closely held HNA this summer said a fledgling New York
charitable foundation would
be its single-largest shareholder following a series of
share transfers from several
individuals.
It said the rest of the company is owned by its founders
and executives, as well as a
charity in Hainan, where the
airlines-to-hotels conglomerate is based. Since that disclosure, bankers and investors
have stepped up scrutiny of
HNA’s still-opaque ownership
structure.
Goldman is suspending its
work on Pactera rather than
resigning outright from the
mandate. It could resume
work on the deal if its concerns are addressed, said one
of the people familiar with the
matter.
Bank of America Merrill
Lynch was previously selected
to handle the IPO before Goldman but also opted not to proceed because of similar concerns about HNA’s ownership,
according to people familiar
with the matter.
Deutsche Bank Chief Asks
ECB to Wind Down Stimulus
BY TODD BUELL
FRANKFURT—Deutsche
Bank AG’s chief said the European Central Bank should begin the process of ending its
accommodative monetary policy, regardless of the strength
of the euro.
Speaking at a banking conference Wednesday, Deutsche
Bank CEO John Cryan said
that while cheap money has
helped countries and banks escape the crisis, it has also led
to “ever greater upheavals.”
He noted record real-estate
prices in advanced economies.
“The stock market appears
only to know one direction,”
he said, adding “we are now
seeing signs of bubbles in
more and more parts of the
capital market, where we
wouldn’t have expected them.”
The comments further high-
light the discomfort among
many in Germany over the
ECB’s monetary policy, which
includes a negative interest
rate on deposits that banks
leave at the central bank overnight.
“The era of cheap money in
Europe should come to an end,
despite the strong euro,” said
Mr. Cryan. “I welcome the recent announcement by the
Federal Reserve and now also
from the ECB that they intend
to gradually bring their loose
monetary policy to an end.
“The central banks must,
however, plot a middle way
that averts massive losses on
the markets,” he said.
Speaking at the same conference, German Finance Minister Wolfgang Schäuble said
“everyone hopes world-wide
that we come to a normalization as soon as possible.”
U.S. Firm Readies REIT Listing in Singapore
The Mart
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Back From HNA
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TRAVEL
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First & Business
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American Century Inv
42.64
Ultra
American Funds Cl A
29.96
AmcpA p
39.68
AMutlA p
BalA p
26.80
13.05
BondA p
62.32
CapIBA p
50.06
CapWGrA
54.54
EupacA p
FdInvA p
60.57
48.77
GwthA p
10.45
HI TrA p
ICAA p
39.34
22.91
IncoA p
42.99
N PerA p
NEcoA p
44.40
63.80
NwWrldA
SmCpA p
53.99
13.08
TxExA p
43.43
WshA p
+0.05 22.2
+0.14
+0.14
+0.05
-0.03
+0.11
+0.15
+0.15
+0.26
+0.20
+0.02
+0.19
+0.05
+0.11
+0.17
+0.19
+0.07
+0.01
+0.14
11.6
8.8
9.3
3.9
9.9
15.5
23.4
13.1
16.0
5.6
9.4
7.3
21.7
23.5
24.0
17.4
4.9
9.6
B
10.98
11.33
BlackRock Funds A
20.01
GlblAlloc p
BlackRock Funds Inst
21.97
EqtyDivd
GlblAlloc
20.12
7.81
HiYldBd
StratIncOpptyIns 9.94
Bridge Builder Trust
10.28
CoreBond
-0.03
-0.02
+0.23 6.0
+0.05 13.8
-0.02 3.9
+0.18 18.5
+0.81 7.4
-0.02
-0.01
4.0
3.9
E
Edgewood Growth Instituti
EdgewoodGrInst 28.61 +0.06 28.8
F
4.3 Fidelity
4.6 500IdxInst
-0.02 10.1
+0.07 7.1
-0.03 10.2
+0.01 6.3
... 3.5
-0.02
4.2
+0.13
4.3
Del Invest Instl
20.34
Dimensional Fds
11.07
5GlbFxdInc
30.23
EmgMktVa
EmMktCorEq 22.06
13.70
IntlCoreEq
106.79
13.55
13.91
45.16
193.74
DoubleLine Funds
10.78
TotRetBdI
TotRetBdN
10.78
StraValDivIS
D
Value
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
Federated Instl
Baird Funds
AggBdInst
CorBdInst
Wednesday, September 6, 2017
Net YTD
Fund
NAV Chg % Ret
19.04 +0.10 15.7
IntlVal
20.81 +0.07 21.2
IntSmCo
IntSmVa
22.68 +0.06 19.6
20.87 +0.05 9.1
US CoreEq1
US CoreEq2 19.75 +0.05 6.9
33.70 +0.06
...
US Small
US SmCpVal 35.70 +0.08 -4.3
23.24 +0.08 -2.7
US TgdVal
37.04 +0.20 6.5
USLgVa
-0.01 2.7
+0.04 26.5
+0.07 27.8
+0.05 19.1
6.35 +0.02 10.0
86.52
500IdxInstPrem 86.53
500IdxPrem 86.52
ExtMktIdxPrem r 59.09
IntlIdxPrem r 41.54
71.27
TMktIdxF r
TMktIdxPrem 71.26
USBdIdxInstPrem 11.72
Fidelity Advisor I
31.52
NwInsghtI
Fidelity Freedom
16.30
FF2020
14.07
FF2025
17.52
FF2030
FreedomK2020 14.92
FreedomK2025 15.79
FreedomK2030 16.28
FreedomK2035 17.12
FreedomK2040 17.14
+0.27
+0.27
+0.27
+0.08
+0.02
+0.20
+0.20
-0.02
11.6
11.7
11.6
7.7
17.7
10.9
10.9
3.7
+0.06 18.0
+0.01
+0.01
+0.03
+0.01
+0.01
+0.02
+0.03
+0.03
10.5
11.1
12.8
10.5
11.2
12.9
14.0
14.1
ing of some of its U.S. office
properties under a real-estate
investment trust called Manulife US REIT.
Singapore is a sought-after
destination for REITs in Asia.
The country is home to more
than 40 REITs with a combined
market capitalization of nearly
$60 billion. Large and small investors are drawn to their
yields, which average 6% to 7%.
Founded in 1992, KBS Realty invests in, manages, develops and sells U.S. commercial
real estate on behalf of pension funds, sovereign-wealth
Fund
Net YTD
NAV Chg % Ret Fund
I
Invesco Funds A
EqIncA
10.95 +0.03
4.4
J
John Hancock Class 1
15.60
LSBalncd
LSGwth
16.55
John Hancock Instl
22.68
DispValMCI
JPMorgan Funds
MdCpVal L
38.54
JPMorgan I Class
11.74
CoreBond
JPMorgan R Class
CoreBond
11.75
L
+0.02 10.2
+0.04 12.6
+0.05
5.6
+0.08
5.9
-0.02
4.1
-0.02
4.1
CapApp
EqInc
EqIndex
Growth
HelSci
InstlCapG
IntlStk
IntlValEq
MCapGro
MCapVal
N Horiz
N Inc
OverS SF r
R2020
R2025
R2030
R2035
R2040
Value
funds and other institutional
investors. As of June 30, the
total value of KBS’s real estate
and real-estate-related investments stood at about $11 billion, according to the company’s website.
A spokeswoman for KBS declined to comment. A spokeswoman for Keppel Capital, the
asset-management arm of Keppel Corp., declined to comment
on the tie-up, but said the
company is always on the
lookout for opportunities to
expand its fund-management
business.
Net YTD
NAV Chg % Ret Fund
29.08
33.17
66.45
66.49
73.81
36.95
18.66
14.83
88.05
30.04
52.80
9.57
10.90
22.64
17.39
25.53
18.61
26.68
36.80
Principal Investors
13.41
DivIntlInst
Prudential Cl Z & I
TRBdZ
14.62
+0.05
+0.13
+0.21
-0.02
+0.07
-0.01
+0.06
+0.03
+0.28
+0.09
+0.08
-0.02
+0.03
+0.02
+0.02
+0.04
+0.03
+0.05
+0.09
11.0
6.3
11.5
24.9
24.9
26.4
22.0
15.8
16.8
3.4
21.9
4.0
20.2
10.9
12.2
13.3
14.2
15.0
9.4
Net YTD
NAV Chg % Ret
TxMIn r
ValAdml
WdsrllAdml
WellsIAdml
WelltnAdml
WndsrAdml
13.65 +0.05
37.93 +0.12
65.94 +0.23
64.54 +0.03
71.62 +0.15
74.60 +0.25
VANGUARD FDS
25.58 +0.08
DivdGro
211.41 +0.40
HlthCare r
INSTTRF2020 22.00 +0.02
INSTTRF2025 22.17 +0.03
INSTTRF2030 22.27 +0.03
INSTTRF2035 22.39 +0.05
INSTTRF2040 22.49 +0.06
INSTTRF2045 22.59 +0.06
37.59 +0.13
IntlVal
31.99 +0.07
LifeGro
LifeMod
26.24 +0.03
25.18 +0.10
PrmcpCor
SelValu r
31.26 +0.07
26.30 +0.03
STAR
10.73 -0.01
STIGrade
TgtRe2015
15.64 +0.01
30.86 +0.03
TgtRe2020
TgtRe2025
18.02 +0.03
32.44 +0.06
TgtRe2030
19.85 +0.04
TgtRe2035
TgtRe2040
34.07 +0.09
21.36 +0.05
TgtRe2045
TgtRe2050
34.37 +0.09
13.47
...
TgtRetInc
TotIntBdIxInv 10.96 -0.01
26.64 +0.01
WellsI
41.47 +0.09
Welltn
WndsrII
37.16 +0.13
VANGUARD INDEX FDS
228.46 +0.72
500
192.11 +0.25
ExtndIstPl
52.32 +0.11
SmValAdml
TotBd2
10.83 -0.02
17.35 +0.06
TotIntl
61.61 +0.17
TotSt
VANGUARD INSTL FDS
33.30 +0.03
BalInst
DevMktsIndInst 13.67 +0.05
DevMktsInxInst 21.37 +0.08
77.84 +0.10
ExtndInst
GrwthInst
67.78 +0.21
10.64 -0.01
InPrSeIn
225.48 +0.71
InstIdx
225.50 +0.71
InstPlus
55.33 +0.16
InstTStPlus
MidCpInst
39.37 +0.07
MidCpIstPl 194.16 +0.34
64.86 +0.11
SmCapInst
STIGradeInst 10.73 -0.01
10.87 -0.02
TotBdInst
TotBdInst2
10.83 -0.02
10.87 -0.02
TotBdInstPl
TotIntBdIdxInst 32.88 -0.03
TotIntlInstIdx r 116.08 +0.41
TotItlInstPlId r 116.11 +0.42
TotStInst
61.65 +0.17
37.93 +0.12
ValueInst
Net YTD Lazard Instl
+0.05 21.9
19.23 +0.07 21.1
NAV Chg % Ret EmgMktEq
Loomis Sayles Fds
-0.04 5.9
Fidelity Invest
14.31 +0.02 7.4
LSBondI
24.26 +0.04 11.0 Lord Abbett A
Balanc
S
... 2.3
84.46 +0.15 25.4 ShtDurIncmA p 4.30
BluCh
Schwab Funds
Contra
119.33 +0.20 22.0 Lord Abbett F
38.43 +0.12 11.7
4.29
... 2.4 S&P Sel
119.31 +0.20 22.1 ShtDurIncm
ContraK
10.16 +0.01 8.5
CpInc r
T
M
DivIntl
39.93 +0.11 19.9
TIAA/CREF Funds
171.86 +0.21 25.6 Metropolitan West
GroCo
18.40 +0.05 10.9
171.79 +0.21 25.7 TotRetBd
GrowCoK
10.75 -0.02 3.3 EqIdxInst
InvGB
7.99 -0.01 4.0 TotRetBdI
10.75 -0.02 3.6 IntlEqIdxInst 19.53 +0.07 18.0
11.38 -0.02 4.3 TRBdPlan
InvGrBd
10.12 -0.02 3.7 Tweedy Browne Fds
27.55 -0.06 10.0
GblValue
54.40 +0.07 9.9 MFS Funds Class I
LowP r
LowPriStkK r 54.39 +0.08 10.0 ValueI
39.10 +0.16 8.7
V
99.36 +0.22 15.1 MFS Funds Instl
MagIn
107.57 -0.07 29.1 IntlEq
OTC
24.46 +0.03 20.7 VANGUARD ADMIRAL
Puritn
22.85 +0.03 11.9 Mutual Series
228.50 +0.72 11.6
500Adml
NA
... NA GlbDiscA
SrsEmrgMktF
31.74 +0.06 5.5 BalAdml
33.30 +0.03 8.1
NA
... NA GlbDiscz
SrsInvGrdF
32.39 +0.07 5.7 CAITAdml
11.91 +0.01 5.1
TotalBond
10.77 -0.02 4.2
CapOpAdml r 145.60 +0.37 17.2
O
Fidelity Selects
36.94 +0.17 25.0
EMAdmr
228.37 +0.56 31.2 Oakmark Funds Invest
Biotech r
72.95 +0.29 8.1
EqIncAdml
First Eagle Funds
77.84 +0.10 7.7
32.60 +0.07 7.2 ExtndAdml
EqtyInc r
58.89 +0.10 8.5 Oakmark
GlbA
10.59
... 2.2
80.05 +0.38 10.4 GNMAAdml
FPA Funds
67.78 +0.22 19.0
27.61 -0.01 21.6 GrwthAdml
OakmrkInt
FPACres
33.93 -0.01 5.3 Old Westbury Fds
HlthCareAdml r 89.18 +0.17 17.6
FrankTemp/Frank Adv
14.43 +0.03 12.5 HYCorAdml r
LrgCpStr
5.97
... 6.1
NA
... NA Oppenheimer Y
IncomeAdv
26.12 -0.04 2.8
InfProAd
FrankTemp/Franklin A
41.06 +0.16 28.4 IntlGrAdml
DevMktY
89.97 +0.40 33.6
7.53
... 5.7 IntGrowY
CA TF A p
41.42 +0.13 19.4 ITBondAdml 11.57 -0.03 4.7
12.06
... 3.7
Fed TF A p
ITIGradeAdml 9.90 -0.02 4.6
IncomeA p
NA
... NA
P
LTGradeAdml 10.64 -0.07 8.7
56.96 +0.24 8.9 Parnassus Fds
RisDv A p
MidCpAdml 178.21 +0.31 10.1
FrankTemp/Franklin C
11.44
... 6.5
42.32 +0.12 8.3 MuHYAdml
ParnEqFd
Income C t
NA
... NA PIMCO Fds Instl
14.30 +0.01 4.9
MuIntAdml
FrankTemp/Temp A
11.74
... 5.6
MuLTAdml
NA
... NA
AllAsset
12.15 +0.08 3.1 TotRt
GlBond A p
11.04
... 2.9
10.39 -0.03 5.6 MuLtdAdml
Growth A p 26.19 +0.06 11.2 PIMCO Funds A
... 1.4
MuShtAdml 15.83
FrankTemp/Temp Adv
12.43
... 6.7 PrmcpAdml r 126.04 +0.40 15.8
IncomeFd
GlBondAdv p 12.10 +0.08 3.2 PIMCO Funds D
REITAdml r 119.50 +0.29 4.0
12.43
... 6.7 SmCapAdml 64.86 +0.11 5.5
IncomeFd
H
STBondAdml 10.51
... 1.8
PIMCO Funds Instl
Harbor Funds
IncomeFd
12.43
... 7.0 STIGradeAdml 10.73 -0.01 2.4
TotBdAdml
10.87 -0.02 3.7
71.15 +0.11 25.6 PIMCO Funds P
CapApInst
W
IntlInst r
68.88 +0.32 17.9 IncomeP
12.43
... 6.9 TotIntBdIdxAdm 21.91 -0.02 1.8
Harding Loevner
Price Funds
TotIntlAdmIdx r 29.03 +0.11 19.5 Western Asset
NA
NA
... NA BlChip
61.64 +0.17 10.9 CorePlusBdI
IntlEq
91.16 +0.08 25.5 TotStAdml
Fund
...
18.1
5.9
6.8
6.1
7.6
8.7
10.9
17.6
9.2
10.2
11.1
11.9
12.8
13.1
18.4
11.9
9.7
13.5
8.6
11.8
2.3
7.8
9.2
10.2
11.1
11.9
12.8
13.1
13.1
6.0
1.8
6.0
7.5
6.8
11.6
7.7
1.4
3.7
19.4
10.8
8.0
18.2
18.2
7.7
19.0
2.8
11.6
11.7
10.9
10.1
10.1
5.6
2.4
3.7
3.7
3.8
1.8
19.5
19.5
10.9
5.9
NA
THE WALL STREET JOURNAL.
Thursday, September 7, 2017 | B11
* * * *
MARKETS
India Separates Itself From Pack
Political stability, tax
overhaul help markets
draw ahead of other
emerging economies
Prime Minister Narendra Modi has pushed for economic revamps.
out from the emerging-market
peer group from a political
perspective and to some extent from a developed-market
perspective,” said David Cornell, chief investment officer
of Ocean Dial, which manages
$550 million in India.
The Indian rupee has
gained nearly 6% this year
against the dollar, and the
benchmark S&P BSE Sensex
index is up 19%. Only China’s
currency is outperforming the
rupee, and Hong Kong’s Hang
Seng Index is outpacing the
Sensex. The World Bank predicted that the South Asian
nation’s economic growth will
accelerate from an estimated
6.8% this year to 7.2% in 2018.
Low inflation positions the
central bank to possibly cut
interest rates again this year.
Other emerging markets such
as Russia and Brazil last year
suffered negative growth, and
the pace of growth of China
has slowed.
The positive outlook comes
despite some recent setbacks.
Prime Minister Narendra
gests it is pulling away. The
Sensex is up more than 80% in
the past five years, while
China’s Shanghai Composite
Index has risen about 66%.
One part of the positive
story is the “political stability
with the Modi government
coming into power and also
getting footholds in the states
so they could turn on the reform agenda,” said Stefan
Grünwald, a fixed-income specialist at Raiffeisen Bank International AG.
Mr. Modi’s tax-collection
push has begun to yield results. After the currency move,
direct tax revenue increased
19% from a year earlier to 1.9
trillion rupees ($30 billion)
from April to July.
The rollout of a long-delayed goods-and-services tax
this year is also expected to
increase compliance and eventually boost growth.
The market is pricing in the
expectation that Mr. Modi’s
party has enough support to
push through more change
and win the 2019 general election, “and that will help him to
legislate more reform which
will in turn lead to a stronger
economy,” said Mr. Cornell of
Ocean Dial.
MARK WILSON/GETTY IMAGES
MUMBAI—India’s stocks
and currency have outperformed those of most large
economies in the past six
months as renewed confidence
in the country’s relative economic and political stability
has made it an emerging-market haven.
The firm standing of the
ruling Bharatiya Janata Party,
good economic fundamentals,
a prime minister with an appetite for overhauls, and a potential demographic dividend
from a young population make
the country an attractive bet,
bullish investors say.
It is a turnaround from four
years ago, when Morgan Stanley bundled India with Brazil,
Indonesia, South Africa and
Turkey as one of the “fragile
five,” because of its weak currency and economic fundamentals.
“India seems to be standing
MARK SCHIEFELBEIN/POOL/REUTERS
BY CORINNE ABRAMS
AND DEBIPRASAD NAYAK
Modi’s move last year to cancel 86% of the currency in circulation in a bid to tackle corruption and tax evasion hurt
economic expansion in the
short run. India’s gross-domestic-product
expansion
slowed from first in the world
for large economies to second
behind China over the past
two quarters as the lack of
cash and confusion about the
goods-and-services tax led to
less spending by consumers
and companies.
Some analysts say Indian
shares look expensive. Stocks
on the Sensex are trading at a
price/earnings ratio of 23
times the expected profits for
this fiscal year, a 17-year high.
But Indian stocks and bonds
attracted about a net $27 billion from foreign investors
this year through August. Demand for offshore rupee-denominated bonds has been so
high that regulators shut
down new issues.
Foreign direct investment
hit a high of $60 billion for
the fiscal year that ended on
March 31.
Some optimists hope that
India is finally emerging from
China’s shadow. India’s longterm stock performance sug-
Vehicles line up at a Chevron gas station Wednesday in Florida as Hurricane Irma got closer. The S&P 500 energy sector added 1.6%, its largest rise in two months.
Energy Stocks Lift Markets After Downturn
BY AMRITH RAMKUMAR
AND GEORGI KANTCHEV
U.S. stocks rebounded from
their worst session in weeks,
boosted by shares of energy
companies.
Energy stocks rose alongside
oil prices as
WEDNESDAY’S Gulf Coast
MARKETS
re f i n e r i e s
continued
to restart
following Hurricane Harvey,
boosting demand for crude.
The Dow Jones Industrial
Average rose 54.33 points, or
0.2%, to 21807.64. The S&P
500 advanced 7.69 points, or
0.3%, to 2465.54 and the Nasdaq Composite climbed 17.74
points, or 0.3%, to 6393.31.
The three indexes had posted
their biggest one-day declines
since Aug. 17 on Tuesday.
“We remain overweight equities and don’t think [Tuesday] was a sign of things to
come,” said Jon Adams, senior
investment strategist with
BMO Global Asset Management. “Our bias has been to
buy the dips,” he said.
The S&P 500 energy sector
climbed 1.6%, its largest oneday advance in two months.
Chevron and Exxon Mobil
were two of the biggest gainers in the Dow industrials,
with shares of Chevron adding
$2.35, or 2.1%, to $111.79 and
Exxon Mobil shares climbing
1.60, or 2.1%, to 78.78. Together, the two stocks added
roughly 27 points to the bluechip index as U.S. crude oil
rose 1% to $49.16 a barrel.
News from Washington
drove some modest intraday
moves in stocks and U.S. government bonds. Stocks slightly
pared gains and Treasury
yields fell briefly after Federal
Reserve Vice Chairman Stanley
Fischer announced his intention to resign, months before
his term was set to expire.
Treasury yields then climbed
after news that President Donald Trump and congressional
leaders had agreed to raise the
federal government’s borrowing limit for three months.
Doubts about raising the debt
ceiling had weighed on markets
in recent weeks.
Financial stocks rose after
their worst day since mid-May,
with the KBW Nasdaq Bank Index, a measure of 24 of the
largest U.S. bank stocks, edging up 0.2%.
United Continental Holdings shares fell 77 cents, or
Rebounding
The S&P 500 energy sector posted its best five-day performance
since early December.
Percentage change over five trading sessions
6%
5
4
3
2
1
0
–1
–2
–3
–4
–5
2016
’17
Source: FactSet
1.3%, to 60.33 after the company said Hurricane Harvey
and price competition will
weigh on revenue in the current quarter. Investors are now
tracking Hurricane Irma, which
has grown into one of the most
powerful storms ever recorded
over the Atlantic Ocean,
prompting evacuations in Florida and disrupting travel.
Continuing tensions following North Korea’s recent nu-
THE WALL STREET JOURNAL.
clear test, its most powerful
yet, were also a concern for
investors.
“While the [market] outlook is generally positive,
there are a lot of risk factors
out there,” said Richard Benson, co-head of portfolio investments at Millennium
Global Investments. “I’m positive but worried.”
Solid earnings and economic growth around the
globe have supported stocks
this year, with U.S. indexes
hitting records over the summer even as investors have
grown anxious about how long
the bull run can last.
Goldman Sachs Group
Chairman Lloyd Blankfein on
Wednesday sounded a warning
about the markets, saying that
some of what he sees “unnerves” him. “Things have
been going up for too long,”
he told attendees at a Handelsblatt business conference
in Frankfurt.
Earlier, the Stoxx Europe
600 rose less than 0.1%, with
many investors looking ahead
to the monetary-policy meeting of the European Central
Bank on Thursday.
Most expect the ECB to wait
until next month to announce
the start of winding down its
€2.3 trillion ($2.74 trillion)
stimulus program.
In Hong Kong, the Hang
Seng
Index—among
the
world’s best-performing stock
benchmarks this year—ended
0.5% lower, while Japan’s Nikkei Stock Average fell 0.1%.
Early Thursday, the Hang Seng
Index and Nikkei were each up
0.5%, while South Korea’s
Kospi was up 1.2%.
Fintech Firm Square Seeks to Establish Bank
BY PETER RUDEGEAIR
Square Inc. is looking to get
into the banking business.
The San Francisco-based finance firm led by Jack Dorsey
plans to submit an application
Thursday to form a wholly
owned bank based in Utah, the
company said. The unit, to be
called Square Financial Services Inc. would offer loans
and deposit accounts to small
businesses and be capitalized
with $56 million.
Square would be the third
financial-technology company
pursuing a banking license in
recent months. In doing so, it
follows in the footsteps of online lender Social Finance Inc.
and mobile-banking startup
Varo Money Inc. Square’s application comes as federal regulators are giving their blessing to the most new banks
since the financial crisis.
Square had been offering
small-business loans and cash
advances through its lending
arm, Square Capital, since
2014 through a deal it had
with Celtic Bank, another
Utah-based lender. To date, the
company says it has extended
more than $1.8 billion in credit
to more than 141,000 firms.
“As we scale, it’s becoming
increasingly important that we
have direct relationships with
regulators,” said Jacqueline
Reses, who leads Square Capital and will be the chairman of
the bank. The acting chief executive of Square’s bank will
be Lewis Goodwin, who recently joined Square from
Green Dot Corp. where he
helped lead the banking subsidiary of the prepaid debitcard company.
Square’s consumer-facing
initiatives, including its digital
money-transfer service, Square
Cash, and its recently launched
installment-loan
business,
would remain separate from
the bank.
Square is applying for a
charter to form an industrial
loan company, an entity that
enjoys many of the same privileges as traditional banks and
can be part of a corporation
that does things other than
banking. Sixteen other industrial banks are licensed to operate in Utah, including one
owned by car maker BMW AG.
Ms. Reses said Square chose
to apply for an industrial-loan
company charter as opposed
to a traditional banking license
because aspects of its business, such as selling hardware
payment terminals and offer-
ing food delivery through its
Caviar subsidiary, are nonfinancial. Bank holding companies are prohibited from engaging in such activities.
Such charters have been
controversial in the past. Over a
decade ago, an application from
Wal-Mart Stores Inc. to form
an industrial loan company
met with a cascade of criticism
from bank lobbyists and community groups. They argued
that letting nonfinancial companies own banks would concentrate too much commercial
and economic power in one
place and could unduly influence lending decisions.
Treasurys
Turn Down
After Debt
Limit Step
BY SAM GOLDFARB
U.S. government bonds
pulled back as President Donald Trump and Democratic
leaders said they had agreed on
a short-term extension of the
federal government’s borrowing limit as part of a Hurricane
Harvey aid bill.
CREDIT
The yield on
MARKETS the
10-year
Treasury note
settled at 2.108%,
up from 2.072% Tuesday,
which was its lowest close
since Nov. 9. Yields rise when
bond prices fall.
Under an agreement reached
at the White House, lawmakers
would extend both the debt
limit and government funding
until Dec. 15. Though it isn’t
certain that Congress will pass
the measure, the apparent
progress led investors to pull
cash out of assets that previously benefited from the threat
of either a debt-ceiling breach
or a government shutdown.
Along with bonds, gold
prices fell, while the Japanese
yen weakened against the dollar. At the same time, four-week
Treasury bills rallied, reflecting
better odds that holders would
be paid on schedule.
Despite Wednesday’s increase, the yield on the 10year note is still much lower
than most analysts projected
at the start of the year, when
it stood at around 2.5%.
Now just a “chip shot away”
from 2%, the yield could easily
drop below that level, though
it would be difficult to hold
there without an event that
hurts the economy “rather
than simply fears of things,”
said Michael Cloherty, head of
U.S. interest-rate strategy at
RBC Capital Markets.
Treasurys have been bolstered this year by a surprising run of soft inflation data.
Low inflation helps preserve
the purchasing power of the
fixed payments and makes it
less likely that the Federal Reserve will raise interest rates.
Wanda
Sues Over
Reports
BY WAYNE MA
BEIJING—Dalian Wanda
Group, the property and entertainment giant controlled by
billionaire Wang Jianlin, has
filed defamation lawsuits
against at least 10 Chinese social-media accounts that published reports the company
says sent its shares and bonds
tumbling.
According to a copy of one
lawsuit reviewed by The Wall
Street Journal, Wanda is taking
issue with claims that Mr.
Wang was detained by police at
Tianjin’s airport last month and
barred from leaving China.
The lawsuit said the socialmedia reports were false but
widely read and forwarded online, “triggering a market
panic” that led to a drop in
Wanda’s bond prices and a
nearly 10% decline in the
shares of its publicly listed unit
in Hong Kong.
The reports also hurt
Wanda’s reputation and ability
to obtain financing and led to
the stagnation of its investment projects, according to the
lawsuit.
The other lawsuits make
similar claims, according to a
person familiar with the matter. In a statement, Wanda said
that the suits have been accepted by Chinese courts and
that the company is seeking 5
million yuan ($764,000) in
damages as well as a public
apology from the social-media
accounts.
In the suit that was reviewed by the Journal, Wanda
is also seeking data on the post
from Tencent Holdings Ltd.,
which operates China’s largest
social-media network.
A Tencent spokeswoman
didn’t reply to a request for
comment.
Wu Xiaowei, one of the defendants named by Wanda, said
he was merely sharing reports
he had read elsewhere in social
media and later deleted them
from his microblog account.
B12 | Thursday, September 7, 2017
THE WALL STREET JOURNAL.
* *
MARKETS
The Euro’s Brisk Advance Hinders ECB
Central-bank concerns Round Trip
include ‘overshooting’
The euro has surged 13% against the dollar this year, driven by an uptick in European growth and sinking U.S. inflation
exchange rate and
readings that may complicate Federal Reserve rate-increase plans. The gains have taken the euro’s value against a
below-target inflation basket of major currencies back to the level at which the common currency started nearly two decades ago.
BY MIKE BIRD
The euro is back to where
it began, partying like it’s
1999.
As the euro rallies to the
levels of its birth, its creator,
the European Central Bank,
may be getting nervous. And
some analysts think it could
climb higher.
On Jan. 4, 1999, the first
trading day of the euro’s existence, the euro reached
$1.1789, according to the ECB.
That is only roughly 1% from
its level of $1.1917 late
Wednesday in New York.
On a trade-weighted basis,
the euro is even closer to its
genesis. The European Central
Bank’s nominal effective exchange rate, which measures
the euro’s value against the
currencies of its 12 closest
trading partners, currently sits
at 103.6, almost exactly its
level of 103.8 in 1999.
The euro has been on quite
a ride since the ECB pressed
the button on the currency
that January. It hit a low of
$0.825 in late 2000 and
bounced to a high of $1.599
during 2008, when the dollar
went through a particularly
weak patch.
In more recent years,
through much of 2015 and
2016, the currency traded in a
much narrower range as investors despaired over weak
growth and anti-establishment politicians calling for
the euro’s end.
This year the euro has
been on a tear, rising 13%
against the dollar, helped by
a round of good economic
data and as concerns over political risk in the region decline. The dollar’s recent
broader weakness has also
helped.
The central bank’s govern-
Email: heard@wsj.com
Harvey Offers
Some Hope
For Detroit
Relief for the embattled
U.S. automotive industry is
coming from an unlikely
source: hurricanes.
Cox Automotive estimates
the number of vehicles damaged by Hurricane Harvey in
Texas at between 300,000
and half a million. Perhaps
20% will be repaired, and
most of the rest replaced
with secondhand vehicles. At
least some will drive newcar sales, though.
Brokerage Evercore ISI
puts the potential bump to
2017 new-car sales from Harvey at about 135,000, or a
little under 1%. That
wouldn’t be enough to restore the market to growth,
but it would cushion the decline. The impact on profits
in Detroit would also likely
be greater, as Texans favor
pickups in which U.S. manufacturers specialize.
Meanwhile, the storms
should support used-car
prices.
This is more significant
for manufacturers than it
sounds. Secondhand prices
have been falling as cars
leased three years ago hit
dealer lots in greater numbers. The residual values
that car makers’ finance
arms include in their models
are likewise falling, weighing
on profits. They are compensating for this by tightening
terms of leasing packages,
even as secondhand models
get cheaper. This is a reason
U.S. new-car sales are weakening despite near-record
consumer confidence. Any
support for used-car prices
should slow this erosion.
The storms won’t wash
away Detroit’s long-term
challenge—investing in electric and self-driving vehicles
as domestic demand stalls—
but they may give it a muchneeded late-year fillip.
—Stephen Wilmot
Euro against 12 trading partners, change from Jan. 4, 1999
20%
15
10
Greece joins the euro.
5
0
–5
–10
European Central
Bank President
Mario Draghi
delivers ‘whatever
it takes’ speech.
–15
–20
ECB begins campaign
of buying bonds to
stimulate growth.
–25
1999
2000
’05
’10
’05
’10
’15
’17
’15
’17
European Central Bank’s key interest rate
4%
3
2
1
0
–1
1999
2000
THE WALL STREET JOURNAL.
Source: European Central Bank
ing council meets Thursday,
and investors expect the
euro’s current strength to be
on the agenda. The minutes
of the ECB’s July meeting included concerns about the
currency’s exchange rate
“overshooting in the future.”
Among the possible concerns for a central bank: A
stronger currency drags down
import prices, reducing inflation at a time when regional
price-growth is still below
the ECB’s target.
But some analysts believe
that even given the recent
gains, the currency is either
trading at what they believe
it is worth or it may even be
undervalued.
Analysts use various methods to estimate what they see
as the appropriate level of exchange rates, based on factors such as the country’s
current-account surplus or
deficit, growth and inflation.
Deutsche Bank suggests
the euro is almost exactly
fairly valued at $1.19, while
BNP Paribas’s analysts believe
that the currency’s fair value
is more like $1.33.
The Big Mac index of London-based magazine The
Economist compares the purchasing power of different
currencies by looking at the
cost of a McDonald’s Corp.
burger. That suggests that
the euro is still undervalued
by around 13%.
There are other ways of
looking at the euro that suggest comfort with its current
trading position.
Three-month euro-dollar
risk reversals, a measure of
the cost of protection against
a drop in the currency, have
moved into positive territory
for the first time in several
years—meaning that the euro
is regarded as safer.
“A stronger euro is at least
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Why the Bank Stock Rally Is Over
Bank stocks are having a
hard time making the transition to autumn. The forecast
is for chilly conditions to
continue.
Following strong gains for
most of the summer, the
KBW Nasdaq Bank Index has
fallen about 6% over the past
month compared with a decline of less than 1% in the
S&P 500. The immediate
trigger appears to be a sharp
move downward in longterm interest rates. This certainly isn’t helpful to banks,
but their biggest problems at
the moment actually lie elsewhere.
The yield on 10-year Treasurys has fallen to 2.10%
from 2.22% over the same
period. One reason is that
North Korean weapons tests
have goosed demand for haven government bonds.
Other factors include weakening employment growth.
There is a case to be
made, though, that investors
in bank stocks focus too
much on the 10-year rate. Af-
Not Counting on Higher Rates
Probability implied by futures markets of a quarter-point
rate increase in December
50%
45
40
35
30
July
August
THE WALL STREET JOURNAL.
Source: CME Group
ter all, commercial banks
don’t typically hold many 10year assets. In the second
quarter, just 28% of total
bank assets had terms of
more than five years, according to data from the Federal
Deposit Insurance Corp.
In a note on Wednesday,
analysts at Goldman Sachs
Group argued for a bet on
bank shares. They pointed
out that 54% of loans at the
biggest lenders have floating
rates, meaning they adjust
automatically in line with
short-term benchmark rates.
As a result, movements in
short-term rates matter
more for most banks’ profitability than movements in
long-term rates. This explains why banks’ net interest margins have steadily ex-
panded this year despite a
flattening yield curve.
The big problem for banks
right now is that short-term
rates, which are largely controlled by the Federal Reserve, aren’t likely to go
higher for a while. Markets
are now pricing in a 36%
chance that the Fed will
raise rates at its December
meeting, according to CME
Group, down from more
than 50% in early July. Stubbornly low inflation, lukewarm employment reports
and the uncertain fallout
from one or possibly even
two disastrous hurricanes
have tempered rate bets.
Various other indicators
also are pointing in the
wrong direction for banks.
Loan growth continues to be
slow, capital markets activity
is weak, and defaults on consumer loans are ticking up.
The glorious bank rally following last year’s presidential election suddenly seems
like a long time ago.
—Aaron Back
partially a response to the
better growth outlook,” said
Luigi Speranza, head of European market economics at
BNP Paribas. “As the recovery
is domestic-led, it is less vulnerable to external shocks
than in the recent past.”
“Importantly, the euro is
still below its historical average in real terms,” Mr. Speranza added. “The eurozone
economy remains rather competitive.”
WSJ.com/Heard
OVERHEARD
It is a country best known
for fairy tales, Legos and environmentalism, but Denmark
is also home to two oil-andgas companies.
That is about to be one
and pretty soon zero. Partially
state-owned Dong Energy,
which stands for Danish Oil &
Gas, is about to complete the
sale agreed to earlier this
year of its oil-and-gas operations.
Dong, it appears, has already moved on. The company’s website shows lots of
pictures of windmills and not
a pump jack anywhere.
Its decision to exit from
its namesake industry started
something of a trend. Last
month, the only other Danish
oil-and-gas company of note,
a unit of shipping company
A.P. Moeller-Maersk, was
sold to France’s Total.
Dong shareholders are
happy with the stock outperforming the energy sector.
Now, it is time to do something about that name.
China Merchants Bank Is Deep Into the Danger Zone
Forget China’s debt binge,
piles of bad loans and billions in dodgy investment
products: Investors have
fallen in love with Chinese
banks again. Their favorite
object of affection is China
Merchants Bank, whose
Hong Kong-listed shares are
up nearly 60% this year to a
record.
Aside from the perennial,
and serious, concerns about
the Chinese financial system,
the crackdown on banks by
Chinese regulators should be
enough to make investors
nervous.
On the surface, China Merchants is doing well. Net
profit rose at a double-digitpercentage pace in the first
half, while its nonperforming-loan balance fell sharply.
Beneath the surface, there
Juiced Up
China Merchants Bank's
annualized return on equity
25%
20
15
10
5
0
2012 ’13
’14
*First half of the year
’15
’16
’17*
Source: Daiwa
are problems brewing. The
bank is deeply reliant on
wealth-management products, which are short-term
investments that promise
higher returns than ordinary
bank deposits. Chinese banks
have issued hundreds of billions of dollars of these
products in recent years,
much of which they have recorded off their balance
sheets, even though most
customers assume the banks
will guarantee them. China
Merchants has about 2.1 trillion yuan ($316 billion) of
these outstanding, the biggest exposure among its midsize bank peers, and is dependent on them for both fee
income and as a source of
funding.
Amid the regulatory crackdown, the bank issued fewer
wealth-management products than it did a year earlier.
If regulators step up efforts to force China Merchants to bring all of its
wealth-management products onto its books, it would
have to raise 100 billion yuan
in new capital, according to
analysts at Autonomous Research.
China Merchants’ balance
sheet isn’t all that it seems.
The bank has been a big user
of asset-management plans.
This tool allows banks to set
up unconsolidated entities
that buy their souring loans
and then issue securities to
investors. China Merchants’
exposure to such plans rose
nearly 20% to more than 400
billion yuan in the first half,
and that is likely where many
soured loans have been put.
The bank is also looking
squeezed when it comes to
income. One of its key customers is Anbang Insurance
Group, which owns New
York’s Waldorf Astoria hotel
as well as a 10% stake in
China Merchants. Anbang is
among the institutions Bei-
jing is scrutinizing following
a wave of overseas acquisitions.
There already are signs
that China Merchants is preparing for a capital crunch.
Last month, it said it would
issue bonds valued at up to
$5.3 billion. Last week, it
said it was injecting capital
into a fund-management subsidiary that deals with its
more than $150 billion assetmanagement business.
All of these issues suggest
its current valuation of 1.3
times book value is overly
generous, especially as other
comparable Chinese banks
trade below one times book.
As Chinese banks face a challenging period, China Merchants should be on top of
the worry list.
—Anjani Trivedi
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