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The Wall Street Journal December 08 2017

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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
FRIDAY, DECEMBER 8, 2017 ~ VOL. CCLXX NO. 135
* * * * *
DJIA 24211.48 À 70.57 0.3%
NASDAQ 6812.84 À 0.5%
STOXX 600 386.41 À 0.02%
10-YR. TREAS. g 13/32 , yield 2.374%
OIL $56.69 À $0.73
GOLD $1,249.80 g $13.00
Remembering Pearl Harbor, 76 Years After the Japanese Attack
What’s
News
Business & Finance
itcoin mania reached
new highs Thursday as
the price of the digital currency jumped about 40%
in about 40 hours, surging
past the $16,000 mark. A1
Some big banks are telling customers they won’t offer them access to the first
bitcoin futures market when
it goes live on Sunday. B11
B
A Caterpillar unit admitted that it cheated customers by performing unnecessary repairs to their rail cars,
court documents show. B3
Shares of Boeing and other
industrial firms pushed major indexes higher. The Dow
gained 70.57 to 24211.48. B11
Morgan Stanley fired
an ex-congressman as a
senior adviser to the firm
after investigating a claim of
inappropriate conduct. B10
World-Wide
Minnesota Sen. Franken
said he would resign in the
face of sexual misconduct
allegations. Rep. Franks of
Arizona announced that he
too would be resigning. A1
Congress passed a twoweek stopgap spending
bill, avoiding a partial government shutdown while
deferring a broader fight. A4
Clashes between Israelis
and Palestinians erupted a
day after Trump said the
U.S. would recognize Jerusalem as Israel’s capital. A8
The devastating wildfires
in Southern California have
been fanned by unusually
powerful winds. A2
Germany’s largest opposition party said it would
enter talks with Merkel’s
conservatives over forging
a new government. A9
Turkish leader Erdogan
criticized the status of
Muslims in Greece during
his state visit to Athens. A9
The House ethics panel
ended an inquiry into Rep.
Nunes, saying it found no evidence he released classified
information to the public. A4
BY NATALIE ANDREWS
AND JANET HOOK
WASHINGTON—Sen.
Al
Franken said Thursday he
would resign in the face of
sexual-misconduct allegations,
underscoring how deeply the
Capitol is being shaken by the
national reassessment of how
men treat women and raising
anxiety about which lawmakers could be next to go.
Mr. Franken made his announcement in a speech in the
Senate that put the Minnesota
lawmaker face to face with
Democratic colleagues who a
day earlier had praised his work
and friendship but called on
him to step aside nonetheless.
“Nothing I have done as a
senator—nothing—has
U.S. Shift on Israel Spurs Clashes
brought dishonor on this institution,” Mr. Franken said, repeating his past statements
that he remembered some of
the alleged transgressions differently and denying some of
the other allegations outright.
But he said it was time to
leave. “Today I am announcing
that in the coming weeks I will
be resigning as a member of
the United States Senate.”
Hours after Mr. Franken’s
speech, Rep. Trent Franks (R.,
Ariz.) announced that he too
would be resigning due to sexual-harassment allegations.
Capitol Hill has been awash
in claims of sexual misconduct
and harassment in recent
months. Rep. John Conyers (D.,
Mich.) this week said he would
be leaving Congress, after facing calls to step down over allegations of inappropriate behavior toward female staff
Please see SENATE page A4
By Shane Harris in
Washington, Kelly
Crow in Miami and
Summer Said in Dubai
Israeli forces stood watch near a checkpoint in the West Bank city
of Bethlehem as Palestinians protested on Thursday. A8
Minnesota governor to name
Franken’s successor............... A4
Saudi Crown Prince
Splurges on da Vinci
Saudi Arabia’s Crown Prince
Mohammed bin Salman, who is
leading an austerity drive at
home, is the bidder who paid a
record $450.3 million for a
Leonardo da Vinci portrait of
Jesus Christ, settling one of the
art world’s biggest mysteries.
Prince Mohammed, known
by his initials MBS, was identified as the buyer of the 500-
year-old painting, “Salvator
Mundi,” in U.S. intelligence reports, according to people
with direct knowledge of the
information. American officials have closely watched the
activities of the 32-year-old,
who is trying to portray himself as a reformer determined
to root out corruption in the
oil-rich kingdom.
“The image of the crown
prince spending that much
money to buy a painting when
he’s supposed to be leading an
anticorruption drive is stagPlease see SAUDI page A8
In China, Chat Group Banter Can Lead to Jail
Censors scour messaging apps for blacklisted words, sensitive images; ‘provoking trouble’
BY EVA DOU
PUYANG, China—One night this September, construction supervisor Chen
Shouli fired off a joke in a chat group.
“Haha,” he typed on his black iPhone
7, followed by an off-color wisecrack
about a rumored love triangle involving
a celebrity and one of China’s most senior government officials.
Four days later, he says, the police
telephoned, ordering him in for questioning.
TOMORROW
An ex-South Carolina policeman who fatally shot an
unarmed black motorist
received a sentence of 20
years in federal prison. A3
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
In China’s swiftly evolving new world
of state surveillance, there are fewer and
fewer private spaces. Authorities who
once had to use informants to find out
what people said in private now rely on a
vast web of new technology. They can
identify citizens as they walk down the
street, monitor their online behavior and
snoop on cellphone messaging apps to
identify suspected malcontents.
Years ago, in the Mao Zedong era,
people were sent to prison, labor camps
Please see CENSOR page A11
Am I Too Old to Stage Dive? A Punk Icon’s Dilemma
i
BY JOHN JURGENSEN
Opinion.............. A15-17
Sports....................... A14
Streetwise................. B1
Technology............... B4
U.S. News............. A2-6
Weather................... A13
World News..... A8-10
>
“I thought, I haven’t done anything
wrong, have I? I’m law-abiding,” recalls
Mr. Chen, a wiry 41-year-old. “So I went
in. Once I arrived, they wouldn’t let me
leave.”
Mr. Chen was locked in a cell for five
days, he says. According to the police report, his comment on the WeChat messaging app was deemed “picking quarrels
and provoking trouble,” a broad offense
that encompasses gang fighting and destruction of public property and is punishable by detention without trial.
i
i
David Yow, 57, avoids beer, hits the gym for Jesus Lizard reunion
The former doctor for the
U.S. women’s gymnastics team
was sentenced to 60 years on
child pornography counts. A14
CONTENTS
Business News.. B3,6
Crossword.............. A13
Heard on Street. B12
Life & Arts...... A12-13
Mansion............. M1-16
Markets..................... B11
YEN 113.08
Bitcoin’s
Wildest
Rise Yet:
40% in
40 Hours
WSJ.
MAGAZINE
eternal st yle
One of the last times his
punk band, the Jesus Lizard,
put on a concert, David Yow
decided to go crowdsurfing.
In his glory days in the
1990s, this was a standard
practice. The singer was renowned for doffing his shirt
and ripping around onstage like
the Tasmanian Devil before
leaping into the crowd to float
on a bed of hands.
This time, though, it was
2009. The Chicago audience
fumbled the reception and Mr.
Yow fell roughly 8 feet onto a
wood floor. “They toted me off
in the ambulance that night,”
he recalls.
Flash forward to 7 a.m. one
recent morning and Mr. Yow,
now 57, is working up a sweat
again—this time at the YMCA.
Wearing an extra sweatshirt to
help trim back the old gut, he
David Yow
tackled a brutal exercise circuit
that includes five sets each of
push-ups, crunches and squats
plus several miles on a tread-
Bitcoin mania reached new
highs Thursday as the price of
the digital currency jumped
about 40% in 40 hours, smashing through five separate
$1,000-barriers and surging
past $16,000.
At one point Thursday, the
price briefly jumped above
$19,000 on some exchanges,
before quickly retreating. At 5
p.m. in New York, bitcoin was
trading at $16,109, up 17% for
the day before it bounced
above $17,000 again in evening
trading.
Even for bitcoin, which is
notoriously volatile, the upward lurch was jarring, astounding outsiders and thrilling those who have piled into
the digital currency in recent
weeks. The rally has been
sparked by the collision of bit-
ly
.
Senator will resign amid
allegations of sexual
misconduct; Arizona’s
Franks also to leave
no
Saudi Arabia’s crown
prince, who is leading an
austerity drive at home, was
the bidder who paid $450.3
million for a da Vinci. A1
Franken Bows to Pressure
co Fo
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Yu’e Bao, the world’s
largest money-market
fund by assets, will limit
the daily amount that individuals can invest in it. B1
SOMBER CEREMONIES: Armando ‘Chick’ Galella, a 96-year-old Pearl Harbor survivor, joined others at a wreath-laying ceremony Thursday
aboard the Intrepid Sea, Air & Space Museum in New York City. Other survivors honored their fellow servicemen in Honolulu. A2
n-
Hospitals, universities
and nursing homes across the
U.S. are rushing to borrow
money tax-free amid the taxoverhaul drive in Congress. B1
Family-owned businesses
are worried that tax legislation could leave them at a
disadvantage to big corporations and other rivals. B2
STEPHANIE KEITH/GETTY IMAGES
Global finance officials
agreed on banking rules for
how to measure the riskiness of lenders, the last piece
of the Basel III package. B10
EURO $1.1774
BY PAUL VIGNA
AND STEVEN RUSSOLILLO
THOMAS COEX/AGENCE FRANCE-PRESSE/GETTY IMAGES
GE will cut 12,000 jobs in
its power business, or nearly
18% of the unit’s workforce,
as the company slashes costs
and battles overcapacity. B1
HHHH $4.00
WSJ.com
mill.
The first time he tried a grueling group class with a personal trainer, he says, “I
thought I was going to die and
then throw up.”
It’s become routine for music legends to rock on far beyond the age at which many
folks retire to mind their stamp
collections. It’s no secret that
this requires vigilant exercise:
At 74, Mick Jagger does miles
worth of dancing and prancing
during Rolling Stones concerts.
Mr. Yow isn’t quite on the
senior circuit yet. But as he
prepares for a run of reunion
concerts starting Dec. 8, he has
been forced to confront an issue that’s unique to his cohort
Please see TOUR page A11
Bitcoin
$16,109
As of Thursday 5 p.m.
Source: CoinDesk
13,500
Dec. 1
CFTC says it will allow
two exchanges to launch
bitcoin futures
11,000
Nov. 29
Bitcoin breaks through
$10,000, as heavy
volume prompts
exchange service
problems
8,500
Oct. 2
WSJ reports Goldman Sachs
considering bitcoin trades
July 24
CFTC approves bitcoin
options
6,000
April 1
New Japan
rules promote
bitcoin use
March 10
SEC denies bitcoin
ETF effort
3,500
1,000
March
June
Sept.
Dec.
coin’s sudden faddish reputation and the anticipation of institutional investors entering
the market for the first time.
“They are on the main stage
now,” said Charles Hayter, the
CEO of research firm CryptoCompare.
Bitcoin crossed the $15,000
milestone Thursday morning
just shy of 6 a.m. New York
time and a few hours later
surpassed $16,000. This was
about 40 hours after it first
crossed the $12,000 level.
The most recent moves
brought bitcoin’s year-to-date
gain to about 1,560%. For
skeptics, that only is proof bitcoin is a massive bubble.
“It’s clear that people are
putting money in simply because they think other people
are going to put in money,”
said Tim Swanson, the founder
and research director at Post
Oak Labs, a San FranciscoPlease see BITCOIN page A10
JPMorgan, others put off
bitcoin futures......................... B11
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
* ***
U.S. NEWS
Wildfires Take Los Angeles by Surprise
LOS ANGELES—Payam Manavi, standing in front of his
blackened childhood home in
Bel-Air on Thursday, surveyed
the damage left by the fires
A firefighter battling a wildfire in Ventura County, Calif., north of Los Angeles, on Thursday. The blaze advanced toward populated areas in Ojai, a renowned retreat.
zones for Ventura County’s
Thomas Fire. In Los Angeles
County, another $6.4 billion of
homes—with a median value
of $2.9 million—stood in the
path of the Skirball Fire, according to Zillow.
Los Angeles Mayor Eric
Garcetti said late Thursday
that fires in Bel-Air and other
parts of the city have eased to
the point he is allowing most
evacuees to return to their
homes that evening. He cautioned that the emergency for
Los Angeles wasn’t over.
“This is still quite an insecure time, though,” the mayor
said in a press briefing. “We
have winds that can pick up
with hardly any notice.”
In Washington, Republican
leaders have pledged federal
assistance to victims of the
Southern California wildfires.
Fire perimeter
Oxnard
n-
no
Waves of cold dense air are
spilling over mountain ridges
and down into the coastal valleys of the Los Angeles region
to fan the flames of at least
four devastating wildfires this
week, in an unusually powerful
Santa Ana wind storm that
shows no sign of abating soon,
several meteorologists said.
In the folklore of Southern
California, the seasonal Santa
Ana winds are often called the
“devil wind.” The arid windstorms can topple palm trees
and roll trash cans like dice
down suburban streets.
But the fierce winds typically owe their power not to
desert heat, but to the cold air
that builds up in early winter
storm systems over Nevada’s
Great Basin. That heavy dense
air sinks and spreads, only to
slosh against the mountains
that rim so much of California.
Pushed against the mountains, the air picks up speed as
it is channeled through passes
and canyons. As the chilly air
slides down the slopes toward
the sea, it is compressed by its
own weight and that creates
heat, raising the air temperature. At the same time, the air
is squeezed dry, giving the
wind its signature aridity.
“It is cold; it is dense; it hits
the mountains; it tries to find a
way through,” said Robert Fovell, an atmosphere scientist at
the University at Albany, SUNY,
who studies the Santa Ana
winds. “Compressed air heats
up at a very fast rate. The relative humidity becomes very
small at the same time.”
For all their strength,
though, this year’s Santa Ana
winds might be nothing out of
the ordinary, except that they
are encountering soil and vegetation already sucked dry by
years of sustained drought, Dr.
Fovell said.
“We are in this pattern for
at least the next seven days,”
said meteorologist Eric Boldt at
the Los Angeles Office of the
National Weather Service.
—Robert Lee Hotz
Thousand Oaks
Median home value
By Census tract
Burbank
Beverly Hills
Malibu
$250,000 $500,000 $750,000 $1 million
Skirball
Fire
High Value Threat
The Skirball fire in Los Angeles is burning near some of the region’s most
expensive properties and has destroyed several multi-million dollar homes.
Values of select
destroyed homes
1/2 mile
‘Devil Wind’ Is
Fierce This Year
LOS ANGELES
Thomas Fire
FFirre
ly
.
tained. Hours later, a brush
fire that ignited north of San
Diego grew to consume 500
acres in three hours.
Fire conditions eased somewhat Thursday as winds subsided, but top fire officials say
they expect the hazardous fire
weather to continue for days.
About 590 people are in 12
Red Cross and community
shelters throughout Ventura
and Los Angeles counties. Over
200 are sheltered in a building
at the Ventura County Fairgrounds, which also has spaces
for pets and livestock.
Officials haven’t released
estimates on how many people
have died or been injured.
According to the online
property site Zillow, $10.4 billion worth of residential real
estate and about 14,300 homes
were in mandatory evacuation
co Fo
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that have raced across Southern California this week: collapsed ceilings, a destroyed attic and extensive damage from
water used by firefighters.
His mother had managed to
escape the morning before as
flames closed in. “We weren’t
prepared,” he said.
Across the greater Los Angeles area on Thursday, many
found themselves surprised to
be evacuating for a wildfire, or
driving into dense smoke surrounded by walls of orange
flame on morning commutes
in a major city. Fueled by historic drought, 80-mile-an hour
gusts have carried embers for
miles, causing fires sparked in
thick brush to alight in neighborhoods that haven’t burned
in years, or ever.
The California blazes this
year are the deadliest and
most destructive wildfires on
record, killing at least 43 people. The Southern California
toll will add to losses in the
October wildfires that the California Department of Insurance on Thursday said totaled
$9.4 billion in residential and
commercial claims.
In Ventura County, north of
Los Angeles, the largest blaze
in the region grew to 96,000
acres and continued to advance toward populated areas
in Ojai, a renowned retreat.
The fire has torched more than
100 homes along the Ventura
County coast and sent more
than 100,000 people across
Southern California fleeing.
As firefighters struggled to
control the fire burning near
Bel-Air and further north in
Sylmar, new fires popped up. A
fire that broke out in Malibu in
the morning was quickly con-
NOAH BERGER/ASSOCIATED PRESS
By Jim Carlton,
Erica E. Phillips
and Nour Malas
Structures
BEL AIR
Linda
Flora Dr.
$6.7 million
$5.8 million
N. Sepulveda
Blvd.
405
Skirball Fire
Evacuation
Area
405
$3.4 million
Roscomare Rd.
$3.0 million
$4.2 million
Moraga Dr.
Casiano Rd.
BEL
AIR
$2.5 million
Vista
Moraga
Linda
Flora Dr.
500 feet
Sources: Census Bureau (home values); Zillow (destroyed home values); CAL FIRE (fire perimeters, evacuation areas); Los Angeles Fire
Department (Skirball fire perimeter); Los Angeles County (buildings)
THE WALL STREET JOURNAL.
U.S. WATCH
FBI
PEARL HARBOR
NEW MEXICO
Wray Defends Agency Victims Remembered High School Student
After Trump Criticism 76 Years After Attack Kills Two Classmates
Federal Bureau of Investigation
Director Christopher Wray defended the bureau’s reputation in
his first public appearance since
President Donald Trump criticized
the agency over the weekend
over the weekend.
“What I can tell you is that
the FBI that I see is tens of
thousands of agents and analysts and staff working” to keep
Americans safe, Mr. Wray told
the House Judiciary Committee.
Mr. Wray spoke days after
Mr. Trump tweeted that the
FBI’s reputation was “in tatters.”
—Del Quentin Wilber
TENNESSEE
Ex-Governor to Seek
Corker’s Senate Seat
Former Tennessee Gov. Phil
Bredesen said he is running for
the seat opened by the retirement of Republican Sen. Bob
Corker.
Mr. Bredesen, 74 years old,
had been wooed by Democratic
leaders because, having been
twice elected governor, he was
seen as one of the few potential
candidates who could compete
in the Republican-leaning state.
In the primaries, Mr. Bredesen
is considered the favorite for
Democrats and Rep. Marsha
Blackburn is the front-runner
among Republicans.
—Janet Hook
Survivors gathered Thursday
at the site of the Japanese attack on Pearl Harbor to remember fellow servicemen killed in
the early-morning raid 76 years
ago, paying homage to the
thousands who died with a solemn ceremony marking the
surprise bombing that drew
America into World War II.
Gilbert Meyer, who lived
through the Dec. 7, 1941, bombing, said he returned to pay his
respects to his shipmates from
the USS Utah—and say a
prayer for them.
The 94-year-old, who lives
near Lytle, Texas, was an 18year-old fireman first class
when a torpedo hit the port
side of the Utah. He said he is
alive today because he happened to be on the ship’s starboard side.
“I think about my shipmates
and how they were killed. It reminds me that we’re lucky we
got off, and we’ve made a good
country for them,” Mr. Meyer
said.
More than 2,300 servicemen
were killed in the assault by
Japanese airplanes. Nearly half
were on the USS Arizona,
which exploded and sank after
it was hit by two bombs.
Most of the Arizona’s fallen
are entombed in the battleship,
which lies at the bottom of the
harbor.
—Associated Press
Students hid in their classrooms, some behind locked
doors, as a shooter opened fire
Thursday inside a New Mexico
high school, killing two classmates before ending up dead.
Authorities and other officials in the small town of Aztec
near the Colorado border said
the shooter and the two victims all attended Aztec High
School. No other injuries were
reported, and it wasn’t clear if
the shooter died by suicide or
was killed by police.
Sophomore Garrett Parker
told Albuquerque television station KOAT that he was upstairs
in history class when he heard
what he initially thought was
students banging on lockers.
CORRECTIONS AMPLIFICATIONS
Fidelity Nasdaq Composite
Index Fund ETF (ONEQ) had
total net assets of $1.48 billion
for the period ending Oct. 31.
The “Tracking ExchangeTraded Portfolios” table in the
Nov. 6 Journal Report incorrectly listed the fund’s net assets at $209.10 billion.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
As the noise got louder and
closer, school officials issued a
warning over the loud speaker.
“When they called over the
intercom that it was not a drill,
we went to the corner of the
room out of sight from the
door and just started hiding,”
he said.
—Associated Press
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THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A3
©T&CO. 2017
U.S. NEWS
Ex-Police
Officer Is
Sentenced
To 20 Years
TIFFANY SOLESTE®
Above, people viewing the solar eclipse from atop Rockefeller Center in Manhattan in August.
Below, an image of a New York woman’s damaged eye after she watched without adequate safeguards.
Solar Eclipse Offers
A Cautionary Tale
BY ROBERT LEE HOTZ
n-
patient’s treatment. “The pattern of the injury is that same
crescent shape that you would
see viewing the eclipse.”
In August, a solar eclipse
swept across the continental
U.S. for the first time since
1918. For months beforehand,
astronomers and eye specialists urged spectators to use
the proper protective eyewear
to avoid damage.
Widespread reports about
the sale of counterfeit viewing
glasses fanned pre-eclipse
anxiety, yet there were few reports of injuries afterward.
“We definitely did not have
an epidemic of injuries,” said
Ralph Chou, a professor emeritus at the University of Waterloo’s School of Optometry &
Vision Science and president
of the Royal Astronomical Society of Canada.
Kavita Bhavsar, a retina expert at the Casey Eye Institute
at the Oregon Health & Science
University, said, “We were definitely prepared to get lots of
no
Last summer’s solar eclipse
was a momentary spectacle for
millions of people. But for one
New Yorker, the sight of the
moon crossing the sun is a vision that may never leave her
view, burned as a crescentshaped scar into her retina.
Close-ups of her damaged
eye tissue—reportedly the
most detailed of their kind—
were published online Thursday in the journal JAMA Ophthalmology
by
solar
retinopathy specialist Avnish
Deobhakta and his colleagues
at the New York Eye and Ear
Infirmary of Mount Sinai.
Eye specialists at major
medical centers in Oregon,
Kansas and Pennsylvania said
this week that they encountered cases of eclipse-related
eyestrain, but none so severe
as in the New York woman who
in August borrowed sunglasses
to watch the celestial show.
Now she sees the dark blot of
the eclipse wherever she looks.
“It’s amazing,” said retinal
specialist Sunir Garg at the
Wills Eye Hospital in Philadelphia, who has studied the images but wasn’t involved in the
referrals [of patients] from
different groups across Oregon. I saw less than 10 cases,
and none of these patients had
any sign of retinal damage.”
In New York, about 22 people came into the Eye and Ear
Infirmary after the eclipse,
worried that they had stared
at the sun without the proper
protection. Among them was
the young woman whose case
was reported Thursday. Her
name was withheld to protect
her medical privacy.
She told the doctors that
she watched the eclipse for six
seconds or so without any eye
protection and then, using a
pair of borrowed glasses,
watched it for 15-20 seconds.
Within hours, her vision had
blurred, colors were distorted
and a black spot had appeared
in her left eye.
“She said she had a hole in
her vision,” said Dr. Deobhakta.
To diagnose the damage,
Dr. Deobhakta and his colleagues used a new technique
called adaptive optics scanning light ophthalmoscopy,
which offers an unusually
clear and precise view of retina cells. They could see that
the lesion resembled the solar
rim during a partial eclipse.
“It is a leap forward in our
imaging ability,” he said. “This
is one of the first times we
can see individual photoreceptors damaged in that pattern.”
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Woman who lacked
proper protection is left
with crescent-shaped
mark on her retina
A former South Carolina
police officer who fatally shot
an unarmed black motorist
two years ago was sentenced
Thursday to 20 years in federal prison.
A federal judge ordered the
sentence for Michael Slager, a
white 36-year-old formerly
with the North Charleston police force. Mr. Slager pleaded
guilty last year to a federal
charge of violating the civil
rights of Walter Scott by
shooting him in the back after
a traffic stop in April 2015. A
cellphone video showed Mr.
Slager repeatedly firing his gun
at Mr. Scott as he ran away.
Mr. Slager had requested a
shorter prison sentence than
the federal guidelines of 121
months to 151 months, or
roughly 10 to 12 years. He said
in court filings that he deserved less time because he
would likely have to spend
much of it under the “onerous
conditions” of solitary confinement for his own protection. As a former police officer
and because of the notoriety
of the shooting, he might be
vulnerable in the general
prison population, he said.
Federal prosecutors had requested a longer sentence
than the federal guidelines
recommended.
They said more time was
warranted because Mr. Slager
attempted to obstruct justice
by giving false statements to
investigators before the video
surfaced. Mr. Slager had told
local- and state-police detectives that Mr. Scott was running at him with the police officer’s Taser, leaving him no
choice but to fire his gun.
U.S. District Judge David C.
Norton sentenced Mr. Slager
to 20 years based on his determination that Mr. Slager’s
actions constituted second-degree murder and his subsequent conduct constituted obstruction of justice.
“Law enforcement officers
have the noble calling to serve
and protect,” Attorney General
Jeff Sessions said in a statement. “Officers who violate
anyone’s rights also violate
their oaths of honor, and they
tarnish the names of the vast
majority of officers, who do
incredible work.”
This week’s sentencing
hearing closed more than two
years of legal wrangling. A
jury failed to reach a verdict
in a five-week murder trial in
late 2016. But in May, Mr.
Slager agreed to a federal plea
deal that resolved other
charges pending in federal and
state courts, and precluded a
likely retrial on murder
charges.
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A4 | Friday, December 8, 2017
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U.S. NEWS
Congress Passes Two-Week Spending Bill
Step averts shutdown
of government, but it
leaves a fight over
funding for year’s end
BY KRISTINA PETERSON
WASHINGTON—Congress
on Thursday passed a twoweek stopgap spending bill, deferring until later in the month
a fight over what issues should
be resolved before lawmakers
leave Washington for the year.
The spending patch, which
will keep the government
funded through Dec. 22, avoids
a partial government shutdown
a little more than a day before
current funding expires at
12:01 a.m. Saturday morning.
The bill passed in a 235-193
vote in the House, with 221
Republicans supporting it and
18 opposed. That marks a victory for House GOP leaders,
who spent much of the week
wrangling with conservatives
who had initially balked at a
two-week spending bill. House
Democrats opposed the bill
175-14. It later passed 81-14 in
the Senate.
“We’ll be working together
in the next two weeks to find a
long-term solution to our funding needs while maintaining
fiscal
discipline,”
House
Speaker Paul Ryan (R., Wis.)
said in a statement after the
House vote.
Both Republicans and Democrats are trying to make sure
they are in the best position to
wrest legislative victories out
of a frenzied push in the final
weeks of the year.
Congressional leaders are
working on a two-year budget
agreement with President Donald Trump that would raise
both military and nonmilitary
spending above the levels,
known as the sequester, established in a 2011 budget and
debt-limit fight. Those lower
spending levels kicked in in
2013, but lawmakers have since
then passed two budget deals
bumping spending higher.
The last budget deal ended
in September, but lawmakers
have kept the government running at that level, as of Thursday evening, through Dec. 22.
House Minority Leader
Nancy Pelosi (D., Calif.), Senate
Minority
Leader
Chuck
Schumer (D., N.Y.) and Senate
Majority Leader Mitch McConnell (R., Ky.) met with Mr. Ryan
and Mr. Trump on Thursday
and worked on where to set
spending levels for the next
two-year deal, an aide said. Republicans are pushing for $54
billion more in defense funding
a year. Democrats want to en-
sure a comparable increase for
nondefense spending, according to aides.
“Nothing specific has been
agreed to, but discussions continue,” Mr. Schumer and Mrs.
Pelosi said in a joint statement
after the meeting.
Once that budget deal has
been reached, lawmakers can
write the detailed spending bill
that would fund the government through the rest of the
fiscal year, which ends Sept. 30.
But with no deal in hand,
lawmakers will likely not have
enough time to write that full
spending bill before the year
ends, Mr. Ryan said Thursday.
“That takes weeks to do and
you want to do it right,” Mr.
Ryan said.
That means that Congress
will likely have to pass another
stopgap spending bill in late
December funding the government through some portion of
January.
That is not the only fight
congressional leaders could
have on their hands on the
next short-term spending bill.
Democrats in both the
House and Senate have said
they won’t support any spending bill that doesn’t include
protections for so-called
Dreamers, young people living
in the U.S. illegally who were
brought here as children.
JACQUELYN MARTIN/ASSOCIATED PRESS
co Fo
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Sen. Al Franken left the Capitol after announcing Thursday his plans to resign over a number of sexual misconduct allegations.
Minnesota Governor
To Name Successor
in Minnesota politics. Because
Mr. Dayton isn’t running for reelection in 2018, the open governor’s seat has attracted a phalanx of candidates in both
parties. The state’s other senator, Amy Klobuchar, is also on
the ballot, although she is considered a safe bet for re-election.
Other Democrats considered
possible appointees are Attorney
General Lori Swanson, and members of the House delegation including Reps. Betty McCollum
and Keith Ellison. Rep. Tim Walz
has thrown his hat in the governor race, but is also seen as a
potential Senate pick.
Minnesota voters typically
back Democrats in statewide
races, and have sided with the
Democratic candidate in presidential races going back decades.
Still, there are signs the 2018
race could be competitive. In the
2016 presidential race, Democrat
Hillary Clinton won the state by
just 1.5 percentage points over
Republican Donald Trump. The
nonpartisan Cook Political Report is initially rating the race a
tossup, at least until the field of
candidates takes shape.
The Republicans have a
52-48 advantage in the Senate,
so Democrats need to pick up a
net of three seats to flip control.
—Janet Hook
than 30 Democrats publicly
called for him to resign.
“I think Al’s a terrific guy
and everybody should be entitled to their day in court, but
for too long we’ve ignored accusations and made people
afraid to even raise the possi-
bility,” said Sen. Heidi Heitkamp (D., N.D.).
Democrats have long cast
theirs as the pro-women party,
and 2016 presidential nominee
Hillary Clinton made cracking
the “highest, hardest” glass
ceiling a central, personal part
of her campaign in a direct appeal to women voters.
Democrats have regularly
called Republican President
Donald Trump unfit for office
because of his crude remarks
about women and accusations
that he sexually mistreated
women, which he has denied.
Democratic senators were expected to join some Republicans who have vowed to move
to expel Alabama GOP Senate
candidate Roy Moore, should
he win next week’s special
election. Mr. Moore has denied
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Ethics Panel
Clears Nunes
BY BYRON TAU
WASHINGTON—The House
Ethics
Committee
has
ended an investigation into
California Republican Devin
Nunes, saying Thursday it
found no evidence he released
classified information to the
public earlier this year.
In a statement, the committee said it had sought guidance
from intelligence agencies and
determined that Mr. Nunes
didn’t release any classified information to the public. Democrats alleged his actions as
House Intelligence Committee
chairman were part of an effort to protect President Donald Trump.
The California Republican
stepped back in April from
leadership of the panel’s investigation into Russian meddling
in the 2016 election to handle the ethics accusations. It is
unclear whether he will resume his role.
In a statement after the
committee’s announcement,
Mr. Nunes lashed out at unspecified political opponents
he said had ginned up the accusations against him.
“While I appreciate the
Ethics Committee’s work, I
need to reiterate that the allegations against me were obviously frivolous and were
rooted in politically motivated
complaints filed against me by
left-wing activist groups,“ he
said.
JIM LO SCALZO/EPA/SHUTTERSTOCK
n-
Sen. Al Franken’s decision to
resign clears the way for another potentially competitive
Senate race in 2018, adding to
the nation’s midterm battlefield.
Mr. Franken’s temporary successor will be appointed by Minnesota’s Democratic governor,
Mark Dayton, who said Thursday he would make his decision
“in the next couple of days.”
The seat would then be subject
to a special election in November 2018 to fill the remaining
two years of Mr. Franken’s term,
which expires in January 2021.
A key question is whether
the governor picks a temporary
successor who has no interest in
running for the seat, or someone
who will use the next year to get
a leg up as an incumbent.
Lt. Gov. Tina Smith, a longtime associate of Mr. Dayton’s,
is considered a likely pick. Local
newspapers speculate that she
would be picked as a short-term
“caretaker” who would serve
only until the special election.
If a caretaker were named to
the post, that would turn the
special election into a wide-open
contest in an already busy year
no
Continued from Page One
members, which he denied.
Other lawmakers also face accusations of sexual harassment and misconduct.
The steady stream of allegations, culminating in the
toppling of Mr. Franken,
showed no sign of abating.
In a new development, Arizona’s Mr. Franks, a conservative House member, said he
would be leaving Congress in
January, after allegations surfaced that his discussion of surrogacy had made two female
employees uncomfortable.
“Due to my familiarity and
experience with the process of
surrogacy, I clearly became insensitive as to how the discussion of such an intensely personal topic might affect
others,” Mr. Franks said, noting that he has two children
through a surrogate.
House Speaker Paul Ryan
(R., Wis.) quickly issued a
statement after Mr. Franks
saying once he was briefed on
the reports, he found them
credible and encouraged the
lawmaker to resign.
Amid the accusations and
resignations, anxiety is rippling through the Capitol
about who might be next.
“I firmly believe that some
people will be captured in this
that aren’t guilty of something
because [that’s] the way the
stampede starts,” Sen. Richard
Burr (R., N.C.) said at a Council on Foreign Relations interview this week.
“People are conflicted,” said
said Steve Elmendorf, a Democratic strategist and former adviser to House Democratic leaders. “It’s coming so fast and it’s
not clear what the standards are
or what they are going to be.”
The continued flow of allegations against Mr. Franken
put his Democratic colleagues
in a difficult position. They ultimately decided to push him
out rather than wait for the
outcome of an Ethics Committee investigation that Mr.
Franken said he would cooperate with. On Wednesday more
ly
.
SENATE
allegations of sexual misconduct with teenage girls. With
Mr. Franken gone, Democrats
believe the contrast between
the parties’ handling of sexual
misconduct would be stronger.
Mr. Franken nodded to that
dynamic in his speech. “There
is some irony that I am leaving
while a man who bragged on
tape about his history of sexual assault sits in the Oval Office, and a man who preyed on
young girls runs for Senate
with the full support of his
party,” Mr. Franken said, alluding to allegations of misconduct
against
Messrs.
Trump and Moore.
By drawing a line on Mr.
Franken, the party signaled
that it would put women’s
rights ahead of its own lawmakers.
“Nothing is easy or pleasant about this,” said Sen. Amy
Klobuchar, Mr. Franken’s Democratic colleague from Minnesota, “but we all must recognize that our workplace
cultures—and the way we
treat each other as human beings—must change.”
Asked if he worried that
drawing a hard line against
any type of misconduct could
backfire, Sen. Tom Carper (D.,
Del.) explained why he called
on Mr. Franken to resign. “I
think for a number of us, the
deciding factor in our decision
to urge Al to step down came
from the repetition. Not just
one isolated or two or three
isolated incidents that might
be explained away.”
The same senators who said
it was time for Mr. Franken to
leave also lined up to embrace
the senator after his speech
Thursday, some wiping their
eyes. Sen. Kirsten Gillibrand
(D., N.Y.) who led the call for
Mr. Franken to step down,
stood in line.
One Republican, Sen. Jeff
Flake of Arizona, was in attendance for the speech and
walked over to shake Mr.
Franken’s hand afterward.
“He’s my friend and he did the
right thing,” Mr. Flake said.
Mr. Franken beat a Republican in 2008 by a narrow 312
votes, the closest margin in
Senate history.
The size of Bears Ears National Monument in Utah was slashed Monday by President Donald Trump.
Businesses Fight for Monuments
BY JIM CARLTON
In the West’s storied land
battles, conservation groups
and Indian tribes often team
up to fight industries over
policies they deem harmful to
the environment.
After President Donald
Trump downsized two Utah
national monuments this
week, they were joined by one
industry on their side: the outdoor-recreation business.
Almost immediately after
Mr. Trump reduced by twothirds the Bears Ears and
Grand Staircase-Escalante national monuments on Monday, outdoor-apparel giant
Patagonia Inc. posted a withering message on its website,
“The President Stole Your
Land,” and on Wednesday
filed suit against the Trump
administration as part of a
coalition of environmental
and other groups.
Another
retailer,
REI,
posted “We [heart emoticon]
Our Public Lands—despite the
loss of millions of acres of
protected land,” while vowing
to ramp up its political outreach to better protect public
lands. REI asked customers to
“join us in solidarity by changing your social profile pic to
the We [heart] Our Public
Lands photo.”
So far, at least 1,300 employees of companies represented by the Outdoor Industry Association sent letters of
protest to 426 members of
Congress.
Earlier this year, Outdoor
Retailer, an outdoor sports
show operated by Emerald Expositions LLC of San Juan
Capistrano, Calif., moved its
big trade show out of Salt
Lake City for the first time in
20 years, to protest Utah’s ef-
forts to get Mr. Trump to
abolish Bears Ears.
Bears Ears was created last
year by President Barack
Obama, and Grand StaircaseEscalante was designated by
President Bill Clinton.
Supporters of the monuments—land and sea preserves
that often limit or ban commercial or other activity that
could potentially damage the
environment—say the support
of a big industry for their
cause could be a game
changer.
Interior Secretary Ryan
Zinke, a former Montana congressman who recommended
the monument changes, said
the lands being removed from
monument status would remain under federal ownership
and protection. Mr. Zinke
added that the remaining
monuments are larger than
some national parks.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
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Friday, December 8, 2017 | A5
RALPHLAUREN.COM/COLLECTION
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A6 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
U.S. NEWS
ChristiansPush Israel Shift Fewer Big Cities
President Donald Trump, flanked by Vice President Mike Pence,
said Wednesday he would recognize Jerusalem as Israel’s capital.
Most Jews in U.S.
Backed Status Quo
BY LAURA MECKLER
AND DANTE CHINNI
The nature of urban leadership is changing as the number
of black mayors in the nation’s
big cities declines, a trend that
risks diminishing prominent
African-American voices in the
public debate.
In 2000, nine of the nation’s
25 largest cities had black mayors. Today, just four do. Over
the same span, the number of
white mayors jumped to 18
from 14.
Analysts point to a range of
possible explanations. An influx
of young, white voters into cities and movement of AfricanAmericans to the suburbs
changed the electorate in some
places. In others, a sense that a
city was struggling led black
voters to consider a broader
set of candidates. And across
the country, the excitement and
political empowerment that
came from electing a black
mayor may simply have waned.
“When I was growing up, it
was a big thing to get a black
mayor,” said the Rev. Al Sharpton, president of the National
Action Network, a civil-rights
group. “Now, young people are
used to a black president.”
The shifting racial politics
played out this week in Atlanta,
which isn’t in the top 25 by
population, but where AfricanAmerican mayors have governed for more than four decades. After a runoff election
on Tuesday, a black city councilwoman, Keisha Lance Bottoms, held a slim lead over a
white colleague, Councilwoman
Mary Norwood. Ms. Norwood
has called for a recount.
Experts say the shift away
from black mayors has both
symbolic and economic ramifications. Cities have long served
as a political power base for
African-Americans, with mayors able to command attention
to their priorities. Black mayors
also have ensured that AfricanAmericans get a larger share of
city contracts, grants and jobs.
co Fo
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A September survey, conducted by the American Jewish Committee, found that only
16% of U.S. Jews wanted to
move the embassy from Tel
Aviv to Jerusalem immediately,
while 36% said it should be
moved only in conjunction with
peace talks, and 44% said it
shouldn’t be moved at all.
Jeremy Ben-Ami, president
of J Street, a liberal Jewish
lobbying organization, noted
that most Jews fall on the left
of the political spectrum. Only
23% of Jews voted for Donald
Trump, according to exit polls.
Mr. Ben-Ami said the push
to immediately recognize Jerusalem as the capital was
driven by evangelical Christians
and a small group of Jews.
Some of the Jewish groups
that have pushed to recognize
Jerusalem are hugely influential within the Republican
Party. Sheldon Adelson, the casino magnate and megadonor
to GOP candidates, has long
pushed to move the U.S. Embassy in Israel.
Mr. Adelson, through a
spokesman, declined to comment on Thursday.
Orthodox Jewish leaders
also largely supported the
move. Orthodox Jews make up
about 10% of Jews in the U.S.
And the influential American Israel Public Affairs Committee, known as AIPAC, also
kept up pressure on Mr. Trump
not to delay making the move
any longer, according to an
AIPAC official.
Have Black Mayors
cal advisers have visited Jerusalem dozens of times.
Mr. Moore said recognizing
Jerusalem as the capital has
been a frequent topic of conversation when evangelical
leaders visit the White House,
which under Mr. Trump has
been almost daily. In June, he
said, Jerusalem was the subject
of an hourlong discussion between religious leaders and administration officials.
“There was a lot of agreement that there was unfinished
business with respect to the
United States and Israel,” Mr.
Moore said. “There was a lot of
Palestinian anger erupts over
Jerusalem stance.................... A8
“It’s not just about one black
mayor but hundreds of other
jobs,” said Christina Greer, a
political scientist at Fordham
University in New York. She
said black leaders are also
more likely to emphasize issues
that are resonant in the black
community, such as policing
practices. “We want a representative democracy, and we
can’t go back to the old days
just having white men as our
elected leaders.”
In 2000, nine of the
25 largest U.S. cities
had black mayors.
Today, just four do.
Philadelphia, Dallas, Detroit,
San Francisco, Memphis, Tenn.,
and Columbus, Ohio, all had
black mayors in 2000. Today,
five of them have white mayors
and one, San Francisco, has an
Asian leader. The nation’s largest cities—New York, Los Angeles and Chicago—have all
elected black mayors in the
past, but today have white men
at the helm.
Just three of the biggest U.S.
cities that had black mayors in
2000 do today: Washington,
D.C., Denver and Houston,
though in Washington, the city
council is now majority white.
One city, Charlotte, N.C.,
elected a new black mayor this
year.
In Memphis, Mayor Jim
Strickland, who is white, defeated the African-American incumbent in 2015.
Otis Sanford, a black professor at the University of Memphis who wrote a book on racial politics in the city, said
voters didn’t feel the same
yearning for a black mayor after having elected two black
men. “They have already
proved the point,” he said.
“They can elect a black candidate whenever they want to.”
n-
President Donald Trump’s
announcement on Wednesday
that he will recognize Jerusalem as Israel’s capital followed
a sustained push by evangelical
Christians that began before he
was in office.
While the American Jewish
community has been split in its
support of recognizing Jerusalem as the capital—a politically
fraught issue, with far-reaching
implications for any peace
agreement with the Palestinians—evangelicals have been
almost uniform in support of
the move, which many see as a
biblical imperative.
Evangelical leaders have
urged supporters to email the
White House about moving the
embassy from Tel Aviv to Jerusalem. They have advocated
on television. And since Mr.
Trump took office, they have
spoken about it frequently with
him and other White House officials, according to multiple
evangelical leaders close to Mr.
Trump.
“While this decision was not
made exclusively in response to
evangelicals, it would not have
been made without the evangelical influence,” said Johnnie
Moore, a member of Mr.
Trump’s evangelical advisory
board and founder of Kairos
Co., which does public-relations
work for many evangelical and
Jewish leaders.
Like Jews and Muslims,
Christians prize Jerusalem as a
holy city, with special status as
the place of Christ’s death and
his awaited return.
Many evangelicals believe
that the land was given to the
Jews by God, who promises in
the Bible to bless those who
bless Israel—and that designating Jerusalem as capital is a reflection of evangelical solidarity with the Jewish people.
Some of Mr. Trump’s evangeli-
JONATHAN ERNST/REUTERS
BY IAN LOVETT
discussion around the table
about the timing and when it
should happen.”
Hogan Gidley, a White
House spokesman, said moving
the embassy to Jerusalem was
discussed with religious leaders, as was religious liberty.
“The president listened to
the stakeholders on this issue,
like he does on many issues,
but this was 100% his decision,” Mr. Gidley said. “I am
sure this president is not the
first to hear from stakeholders
who support moving the embassy to Jerusalem, but he is
the first president to take control of the situation.”
Past presidents such as Bill
Clinton and George W. Bush
promised to recognize Jerusalem as Israel’s capital, but then
repeatedly delayed any change
once in office.
Many Jews were satisfied
with this state of affairs, and
considered the ambiguity of
the U.S. position useful for
peace negotiations.
Other religious groups—
ranging from Muslim organizations in the U.S. to Pope Francis—criticized Mr. Trump’s
decision to recognize Jerusalem as the capital.
Whereas for most Jews,
whether to move the embassy
is a policy question, for many
evangelicals it is a question of
faith. More than 80% of white
evangelicals believe Israel was
given to the Jews by God, according to a 2013 Pew Research
Center survey; only 40% of
Jews hold that belief.
Evangelicals, who voted
overwhelmingly for Mr. Trump,
are a core constituency for the
president, who has followed
through on a number of campaign promises he made to religious conservatives.
“Promise made. Promise
kept,” said Paula White, an
evangelical pastor and spiritual
adviser to Mr. Trump. “Evangelicals are ecstatic, for Israel
is to us a sacred place and the
Jewish people are our dearest
friends.”
ly
.
Evangelicals have
lobbied Trump hard to
recognize Jerusalem
since the ’16 campaign
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THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A7
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changes the brain — that’s why
quitting is so hard.
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THE WALL STREET JOURNAL.
A8 | Friday, December 8, 2017
WORLD NEWS
U.S. Shift on Jerusalem Sparks Clashes
Israeli-Palestinian
fighting erupts as
American allies decry
Trump’s embassy move
Clashes between Israelis
and Palestinians erupted on
Thursday, a day after President Donald Trump said the
U.S. would recognize Jerusalem as the capital of Israel and
ordered the first steps toward
moving the American embassy
to the holy city.
Palestinians protested near an Israeli border officer on Thursday at the Damascus Gate of the Old City of Jerusalem.
moves “irresponsible and unwarranted.” The kingdom
urged the White House to reverse the policy, warning it
would lead to “a drastic regression” in peace prospects.
Jordan, one of the most
moderate U.S. allies in the region, said the White House’s
decision “fuels anger and inflames the passions of Muslims and Christians throughout the Arab and Muslim
worlds.” Iraq’s foreign ministry summoned the U.S. ambassador to protest.
Elsewhere, Turkey warned
the move threatened regional
stability. “Taking such a step
throws this region into a ring
of fire,” President Recep
Tayyip Erdogan said.
Arab leaders had repeatedly
warned the White House
against the Jerusalem decision
in phone calls and public
statements over the past
week. But it was still unclear
whether their statements reflect a major change in ties
with the U.S.
Mr. Trump called the leaders on Tuesday to inform them
of the coming announcement,
and senior White House officials said they expected fallout
from the move in the short
term. But they also said they
expect that Palestinians and
other stakeholders eventually
will return to talks. In the
short run, they said, they believe recognizing Jerusalem
gives Mr. Trump credibility,
because it shows he keeps his
promises.
Officials from both Saudi
Arabia and the United Arab
Emirates have been discussing
the issue of Jerusalem with
U.S. officials ever since the
Trump administration first
floated the idea to move the
embassy, according to a per-
ly
.
militia fighting in Iraq and
Syria said the decision provided “a legitimate reason to
target the U.S.”
As the civil unrest spread,
there were signs that the
Trump administration’s policy
shift was already straining relations with America’s closest
Arab allies—an indication that
the U.S. risks alienating potential partners in the pursuit of
Middle East peace and in
building a coalition to counter
Iran.
In a rare public rebuke to
its most important ally, Saudi
Arabia called Mr. Trump’s
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The Palestinian Islamist
movement Hamas, which controls the Gaza Strip, called for
a new uprising against Israel. A
rocket fired from Gaza landed
inside the country, but no one
was hurt. It drew Israeli artillery fire and an airstrike in response, the military said.
Battles broke out in a number of West Bank cities and
near Gaza, according to Palestinian authorities, who said
about 50 Palestinians were injured. Youths burned tires and
threw stones at Israeli soldiers, who responded by firing
tear gas and rubber bullets.
The Israeli military said it
had beefed up security with
hundreds of soldiers in the
West Bank and put reserve
forces on standby. Largely
peaceful protests were held in
East Jerusalem, a mostly Palestinian area, as well as in
Jordan, Turkey and Egypt.
Jihadist groups in the region meanwhile called for violence. An Iran-backed Shiite
OREN ZIV/DPA/ZUMA PRESS
By Rory Jones in Tel
Aviv and Margherita
Stancati in Riyadh,
Saudi Arabia
son familiar with Saudi and
Emirati thinking.
Behind the scenes, Saudi
and Emirati officials forcefully
warned against it, indicating it
would be counterproductive to
peace talks and a distraction
from bigger regional problems
by sparking violence, according to this person.
Prince Khalid bin Salman,
Saudi Arabia’s ambassador to
Washington, had personally
pushed back hard against the
White House plan, this person
said.
Palestinian Authority President Mahmoud Abbas on
Wednesday said the U.S. decision all but ended any role the
White House could play in future peace talks. Mr. Abbas
traveled to Amman on Thursday to discuss the situation
with Jordan’s King Abdullah II,
according to a statement from
the Jordanian leader’s office.
Palestinian officials said
they felt blindsided by the
White House decision, believing that the U.S. wanted to
work on a overarching peace
plan before addressing the Jerusalem embassy issue. Jared
Kushner, Mr. Trump’s son-inlaw and senior adviser, had
been working on such a peace
effort.
Israeli officials, who have
welcomed the U.S. decision,
estimated tensions would simmer for days but eventually
calm. Israeli forces command
parts of the West Bank while
Palestinian Authority security
forces maintain order in Palestinian cities in the territory.
—Suha Ma’ayeh in Amman,
Nuha Musleh in Ramallah
and Abu Bakr Bashir
in Gaza City
contributed to this article.
Continued from Page One
gering,” said Bruce Riedel, a
former CIA officer and leading
expert on Saudi politics.
Prince Bader bin Abdullah
bin Mohammed, a lesserknown figure and a distant
relative of the crown prince,
was the nominal winner of the
auction, held at Christie’s in
November, a Middle East artworld figure familiar with the
purchase said, “but he is a
proxy for MBS.”
“It is a fact that this deal
was done via a proxy,” the
person said.
Prince Bader emerged a little over a year ago in the auction arena, winning works
from several major houses.
While it is unclear which
pieces he won in bidding, people familiar with the matter
say they suspected he wasn’t
buying for himself. Collectors
often assign an agent or adviser to line up the paperwork
and do the actual bidding on
artworks.
The sources with knowledge of U.S. intelligence said
that Prince Bader may be
named as the buyer on paper,
but they added that Prince
Mohammed is the ultimate
customer. Prince Bader has
collaborated with MBS in the
past on business ventures and
charitable causes.
The purchase—the most
money ever paid for a single
Israel’s prime minister is making his first-ever official visit to the EU.
Regular
political-level
meetings of EU and Israeli officials have been frozen for
the past five years because of
the bloc’s concern about Israel’s approach to the peace
talks. Israeli officials say Mr.
Netanyahu has repeatedly
sought to resume talks with
Palestinian Authority leader
Mahmoud Abbas.
EU foreign-policy chief Federica Mogherini learned of the
prime minister’s visit only at
the last minute, officials said.
She swiftly tried to take control of the process, announcing she would chair the meeting. This week she also
announced Mr. Abbas would
come in January to meet foreign ministers.
CARL COURT/GETTY IMAGES
SAUDI
no
BRUSSELS—Israeli Prime
Minister Benjamin Netanyahu
makes his first-ever official
visit to the European Union’s
capital on Monday. He brings
the air of someone holding the
upper hand, but translating
that into diplomatic progress
will be a challenge.
Mr. Netanyahu’s trip follows
U.S. President Donald Trump’s
announcement
ANALYSIS on Wednesday
that the U.S.
would recognize
Jerusalem as Israel’s capital,
underscoring the support the
prime minister has in Washington. Israel also enjoys good
ties with Moscow, and its relations with Saudi Arabia and
some other Gulf Arab countries, although unofficial, have
rarely been better.
Europe, by contrast, remains beset with international
and internal problems. Relations are chilly with Mr.
Trump and Russian President
Vladimir Putin. The bloc is increasingly divided over its approach to Mr. Netanyahu and
to what extent cooperation
should hang on progress in
stalled Palestinian peace talks.
Israeli officials hope this
context will help them move
conversations beyond the
stalled peace process onto Israel’s top concerns: curtailing
Iran’s regional influence and
advancing bilateral projects.
“Israel is in its best position ever to talk or to deal or
to negotiate…with the EU,”
said Yoaz Hendel, a former
spokesman for Mr. Netanyahu.
Mr. Netanyahu has generally eschewed invitations to
EU headquarters because of
the bloc’s criticism of Israel,
which he has used to rally political support at home. This
time, however, he was invited
here to meet with the bloc’s
foreign ministers by Lithuanian Foreign Minister Linas
Linkevicius, who said the visit
would help the two sides reengage after a hiatus.
n-
BY LAURENCE NORMAN
GALI TIBBON/AGENCE FRANCE-PRESSE/GETTY IMAGES
Netanyahu to Visit Brussels With Wind in His Sails
The painting was shown in London in October before the November auction at Christie’s in New York.
artwork at auction—amounts
to the crown prince’s artworld debut, placing him atop
a shortlist of wealthy newcomers who are willing to pay
more than $100 million for a
piece of art.
It reflects the trophy-hunting atmosphere dominating
the international art market
lately, as billionaires from
China, the Middle East and beyond compete for a handful of
masterpieces on the block. The
sale also marks a new front in
the battle among Middle East
royal families for cultural
prowess.
For more than a decade,
Qatar has reigned as the Gulf
region’s undisputed art power,
with former emir Sheikh
Hamad Bin Khalifa Al-Thani
erecting a $300 million Museum for Islamic Art, designed
by I.M. Pei, in Doha in 2008.
Under the direction of the
emir’s daughter, the Qataris
paid top dollar for pieces by
Mark Rothko and Paul Cézanne. Two years ago, her private purchase of Paul Gauguin’s Tahitian scene, “When
Will You Marry?” for roughly
$300 million, stood as the
most-expensive painting ever
sold—until now.
Within art circles, Riyadh
and Jeddah aren’t yet cultural
While Mr. Netanyahu is facing problems at home, including a probe into corruption allegations he denies, he has
been staging a diplomatic offensive, observers say, visiting
capitals in Africa, Latin America and Europe.
Gilad Erdan, Israel’s minister of public security and strategic affairs, said in Brussels on Wednesday that Mr.
Netanyahu’s primary goal for
the trip is rallying European
cooperation for limiting Iran’s
role in Lebanon and Syria,
above all along the Israeli-Syrian border.
Mr. Erdan said Mr. Netanyahu’s message would be that
Europe could face unwanted
consequences—including
a
fresh wave of migrants—if
conflict intensifies in Syria between Israel and Iran and its
proxies. Israel wants Europe to
use the economic leverage it
has gained since the Iran nuclear deal to press Tehran to
stay out of Israel’s reach.
European trade with Iran
has boomed since sanctions
were lifted as part of the 2015
nuclear agreement.
Mr. Netanyahu is also expected to renew his call for
the EU to blacklist all of Hezbollah as a terrorist group, not
just what Brussels calls its
military wing.
There will be some receptiveness to these points.
France, Germany and Britain
have increased warnings about
Iran’s regional role and missile
program.
“We have to talk, we have
to re-engage, to discuss,” said
Mr. Linkevicius, the Lithuanian foreign minister.
Yet limits remain to Israel’s
ties to the EU. Countries including France, Ireland and
Sweden want any stepped-up
cooperation tied to the peace
process. And the bloc stands
united behind the EU’s fundamental peace-process demands: a two-state solution
for Israelis and Palestinians
and an end to building new
settlements.
hotbeds on par with Qatar’s
Doha or the Emirates’ Dubai
and Abu Dhabi. Yet in buying
the da Vinci, dealers say, Saudi
Arabia has managed to lock in
cultural bragging rights and
swivel attention to its own
emerging art scene.
And, in a twist, a former
adviser to the Qataris said Sotheby’s offered the family a
chance to buy the da Vinci six
years ago for around $80 million, but the family turned the
house down. The piece later
sold to Russian billionaire
Dmitry Rybolovlev, who resold it last month at Christie’s. The Qataris didn’t bid on
the work at the November
auction, the former adviser
said.
Christie’s declined to comment. Qatar officials didn’t respond to requests for comment.
Prince Mohammed’s extravagant purchase of “Salvator Mundi,” the only da Vinci
in private hands, comes at a
time of deep economic and
political uncertainty in Saudi
Arabia.
The favorite son of King
Salman has overseen austerity
measures on government ministries to cope with oil-price
declines, although some of
those measures were reversed
this summer. The crown
prince, who only became the
second in line to the throne in
June, has recently launched an
anticorruption crackdown that
netted other Saudi princes,
government ministers and
prominent businessmen.
The painting may not immediately be heading for a wall in
Prince Mohammed’s palace.
The recently opened Louvre
Abu Dhabi tweeted Wednesday
that “Salvator Mundi,” would
be displayed there, without
providing a timeline for the arrangement. Often, a masterpiece can drive crowds to a cultural destination. The Louvre in
Paris said it estimates that 80%
of its 7.4 million visitors last
year came at the outset to see
the “Mona Lisa.”
A spokeswoman for the museum declined Thursday to
give further details. But the
painting’s destination may
help explain the crown
prince’s political motives in
acquiring it.
Abu Dhabi is the capital of
the United Arab Emirates,
which has deepened ties with
Saudi Arabia during Prince
Mohammed’s rise. The U.A.E
has long tried to establish itself as a cultural hub to compete with political rival Qatar.
Both Saudi Arabia and the
U.A.E. cut diplomatic ties with
Qatar in June because of a
long-simmering tensions between them.
Abu Dhabi’s ruler, Mohammed Bin Zayed, has acted as a
mentor for Prince Mohammed
as the young Saudi leader has
laid out grandiose economic
visions for the kingdom and
sought to attract hundreds of
billions of dollars in foreign
investment.
—Asa Fitch in Dubai
contributed to this article.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A9
NY
WORLD NEWS
BERLIN—Germany moved a
small step closer to a potential
solution to its political crisis
on Thursday after the country’s largest opposition party
said it would enter talks with
Chancellor Angela Merkel’s
conservatives over forging a
new government.
Ms. Merkel’s attempt to
form an unprecedented alliance of conservatives, freemarket libertarians and environmentalists collapsed in late
November, leaving Europe’s
largest economy with a caretaker administration more
than two months after an election that yielded no majority.
On Thursday, delegates
from the Social Democratic
Party—Ms. Merkel’s junior
ruling partner over the past
four years, which has been
poised for the opposition after a bruising electoral defeat—met in Berlin to debate
whether to open talks with
Ms. Merkel’s conservative alliance. Together, the two blocs
could command a majority of
seats in parliament, or the
SPD could give limited support to a minority Merkel
government.
It isn’t clear what arrangement will emerge from the
talks. “We want to talk openmindedly and see which solutions we could bring about,”
SPD Chairman Martin Schulz
told the convention. “We don’t
have to rule at any price. But
we also mustn’t want not to
govern at any price. The key is
what we can push through.”
The decision to open talks
was backed by a clear majority
of the roughly 600 delegates
and marks an about-turn for
the party, which last month
rejected governing with Ms.
Merkel again. Polls suggest a
remake of coalition would be
deeply unpopular among
grass-roots SPD members, who
would have to approve any coalition deal at the end of the
talks.
Only 27.9% of SPD members
support a grand coalition, according to a poll of 5,066 peo-
Prime Minister Tsipras, left,
greets President Erdogan.
nno
LUKAS COCH/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY
Australia Lawmakers Approve Same-Sex Marriage
JOYFUL RECEPTION: Liberal MP Warren Entsch and Labor MP Linda Burney celebrated Parliament’s 145-4
vote to legalize same-sex marriage. Most voters endorsed gay marriage in a nationwide ballot last month.
WORLD WATCH
LIBERIA
High Court Dismisses
Poll-Result Challenge
The country’s Supreme Court
upheld the results of October’s
first-round presidential elections,
paving the way for a runoff expected to bring the West African
nation’s first democratic transfer
of power since 1944.
The Supreme Court on Thursday dismissed claims of widespread fraud by the third-place
finisher in the Oct. 10 presidential election, Charles Brumskine.
Former soccer star George
Weah won 39% of the vote,
ahead of Joseph Nyumah
Boakai, who gained 29%.
“There isn’t sufficient evidence to merit a rerun of the
election,” Supreme Court Justice
Philip Banks told the courtroom
in the capital, Monrovia.
—Nicholas Bariyo
KENYA
World Bank Cuts
Growth Forecast
A long, messy election and
detrimental policies will slow
growth in one of Africa’s most
FELIPE TRUEBA/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY
BY ANDREA THOMAS
Social Democratic Party leader Martin Schulz after speaking Thursday at a Berlin party conference.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ATHENS—Turkish President
Recep Tayyip Erdogan criticized the status of Muslims in
Greece during a state visit to
Athens that aired long-running
tensions between the two
countries.
On the first day of a twoday trip to Greece, Mr. Erdogan said the 1923 Lausanne
Treaty, which defined the borders of the modern Turkish
Republic and determines the
rights of Greece’s Muslim minority, isn’t fairly applied and
requires revision.
“This is an agreement
signed 94 years ago,” Mr. Erdogan said. “Many things have
changed and new issues have
emerged between Turkey and
Greece in this period.”
Mr. Erdogan said Greek authorities have failed to ensure
the rights of Muslims living in
the country, most of whom are
of Turkish origin. The Lausanne Treaty, which helped
regulate a massive exchange of
religious minorities between
the two countries in the wake
of the end of the Ottoman Empire, says that Greece’s Muslim minority and Greeks in Istanbul should be able to
maintain their traditions.
During a tense exchange
with the Greek president,
Prokopis Pavlopoulos, Mr. Erdogan said the Muslims, who
were exempted from the population exchange and live in
Western Thrace, a region on
the Turkish border, don’t enjoy such control.
In response, Mr. Pavlopoulos said, “This treaty, to us, is
not negotiable, this treaty
does not have any gaps, does
not need a review nor an update. This treaty is valid as it
is.”
The Muslim minority living
in Western Thrace makes up
about 0.9% of Greece’s total
population, but about a third
of the population in the region. There have been tensions
recently over the application
of Shariah law instead of
Greek civil law for family issues among the Muslims living
there. Mr. Erdogan will visit
the area Friday.
In an interview with Greek
television Wednesday, the
Turkish president had also
called into question the legitimacy of the borders defined
by the Lausanne Treaty.
“In the Aegean, there are
distances between some islands which are quite problematic,” Mr. Erdogan told local SKAI TV. “The airspace and
the territorial waters and the
different measurements can be
improved.”
In a separate meeting with
Greek Prime Minister Alexis
Tsipras, Mr. Erdogan said, “we
do not eye the territorial integrity of any of our neighbors.”
During a news conference
with Mr. Erdogan later Thursday, Mr. Tsipras said international agreements, including
the Lausanne Treaty, should
be respected and he ruled out
a revision.
“I think that it has not been
very clear what he has been
calling for,” Mr. Tsipras said.
“If he was asking for a revision we would probably have
to ask the other nine countries
that signed it, we would have
to look for Japan to agree.”
Other signatories include Britain, France and Italy.
ALKIS KONSTANTINIDIS/REUTERS
BY NEKTARIA STAMOULI
Merkel, Opposition to Talk
important economies to its
weakest in five years, the World
Bank said.
The bank now predicts
Kenya’s gross domestic product
will expand by 4.9% in 2017, instead of the nearly 6% originally
expected.
Presidential elections were
held in August, but the Supreme
Court annulled the results citing
procedural irregularities; a repeat
election was held in late October
that handed incumbent Uhuru
Kenyatta another five years in
power. The poll was marred by
an opposition boycott, with only
one-third of the country voting.
Clashes between opposition supporters and police have led to at
least 100 deaths since August.
A pre-election policy that
capped interest rates in September 2016 has brought lending to
a near standstill, with credit
growth recorded at just 1.6% in
August and sending at least four
lenders into the red this year.
“Removing the interest-rate
cap can help jump start domestic credit to the private sector,”
the World Bank said Thursday,
adding that reversing the policy
was “critical to preserving medium-term growth prospects.”
—Matina Stevis-Gridneff
ZIMBABWE
Harare Takes Steps
To Spur Investment
The government acted to
undo parts of former President
Robert Mugabe’s economic legacy, proposing an end to rules
limiting foreign investment and
broaching the subject of payments to white farmers whose
land had been seized.
As he unveiled a $5 billion
budget, Finance Minister Patrick
Chinamasa declared the country
open for business after more
than a decade of isolation during
Mr. Mugabe’s 37-year reign. Mr.
Mugabe’s rule ended last month
under pressure from the military
and his party, with his former
deputy Emmerson Mnangagwa
succeeding him as president.
The budget proposal took aim
at two of Mr. Mugabe’s signature policies: Requiring that all
companies be majority-owned by
indigenous people and expropriating land from European settlers. Mr. Mnangagwa, who hails
from the same ZANU-PF party
as Mr. Mugabe, has a largeenough majority in the country’s
parliament for the budget to
pass.
—Bernard Mpofu
dling share of the votes, the
parties have been reduced to
working together twice since
2005.
After Ms. Merkel failed to
cobble together a disparate
four-party coalition of archconservatives, free-marketeers
and left-leaning Greens, the
country’s president, himself a
Social Democrat, put pressure
on the SPD to enter talks with
Ms. Merkel.
The parties’ leaders are set
to meet next week to start
preliminary talks. A coalition
agreement—or one that would
see a minority Merkel government rule with limited SPD
support—could take months to
emerge. Should the talks collapse or one of the parties reject the final agreement, the
outcome would be snap elections some time in 2018.
Many grass-roots SPD
members dislike the notion of
a renewed alliance with Ms.
Merkel’s conservatives, which
they think has weakened their
party. The SPD has shed almost half of its voters since
first joining forces with the
chancellor 12 years ago.
Others say the party should
at least discuss forms of support to prevent snap elections.
ly
.
Erdogan Abroad
Airs Grievances
ple conducted Nov. 30-Dec. 5
for Spiegel Online. The party
is at odds with Ms. Merkel’s
Christian Democrats on issues
ranging from immigration to
security and economic policy.
“We have reached a point
where a [grand coalition] can
no longer be justified,” said
Aljoscha Dalkner, a 24-yearold student from Göttingen
and SPD convention delegate.
“We need renewal.”
The September election
marked a low for the country’s
two dominant parties, which
both scored their worst scores
in decades. With their dwin-
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Friday, December 8, 2017
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
An undercover operative for
the National Anti-Corruption
Bureau of Ukraine was discussing a $30,000 bribe with a
senior official when agents
from two other law-enforcement bodies that answer to
Ukraine’s president swooped
in and detained him.
Neither side disputes that
account, according to officials
at NABU and the two law-enforcement bodies. But the incident is now at the center of a
feud among three Ukrainian
law-enforcement agencies that
Western officials say could undermine U.S.-backed efforts to
fight corruption in a country
on Europe’s eastern edge.
The Security Service of
Ukraine, or SBU, and the General Prosecutor’s Office accused
the operative of illegal entrapment and publicly unmasked
several agents, wrecking the
operation that was launched in
April following a tip that a ring
Employees of the FBI-backed National Anti-Corruption Bureau of Ukraine took the oath of office in February 2016.
son was charged for alleged
embezzlement and also released on bail. Both deny the
accusations against them.
NABU Director Artem Sytnyk said the bureau’s recent
endeavors might have triggered
the intervention, which comes
after months of intensifying efforts to block its work by some
government agencies that accuse it of illegal activity.
“What we’re seeing is an
attempt to stop all anticorruption reforms in Ukraine,” Mr.
Sytnyk said in an interview in
Washington on Tuesday.
NABU was established as an
independent agency, with its
director selected by the president from a choice of two presented by an independent commission. It is largely funded by
the state budget, in addition to
funds it has received from the
U.S. and its allies.
Two lawmakers from progovernment parties proposed
a draft law on Wednesday that
would make it easier to fire
the head of NABU.
Mr. Sytnyk said the disrupted operation, which he described as a joint FBI-NABU
Force Buildup
The U.S. Army has expanded combat forces in Europe since
Russia's 2014 intervention in Ukraine.
Soldiers
assigned
Tanks/
Bradleys
Helicopters
40 thousand
300
200
31,700
ARNO BURGI/DPA/ZUMA PRESS
20
Lt. Gen. Ben Hodges revamped the U.S. Army’s posture in Europe.
240
150
0
2014
’14
4
137
100
0
’17
Equipment
storage sites
2
0
’17
Source: U.S. Department of Defense
’14
4
0
’17
’14
’17
THE WALL STREET JOURNAL.
Cold Warrior’s Lessons for the Future
no
For much of this year, a display in the headquarters of Lt.
Gen. Ben Hodges, the commander of U.S. Army forces in
Europe, featured a quote from
a German admiral predicting
America would never enter
World War I.
“This is what failed deterrence looks like,” Gen. Hodges
said recently as he glanced at
the quote at his base in Wiesbaden, Germany. His goal during his three years in his post
has been to make sure any adversary of the U.S. and its allies has no excuse for making
such a dangerous miscalculation today.
Gen. Hodges, 59 years old,
will retire this month after
overseeing the first buildup of
America’s military posture in
Europe since the Cold War. He
helped bring additional U.S.
tanks to Poland and crafted a
procedure for moving those
forces around Eastern Europe.
He pushed Washington to send
more helicopters, rebuilt
weapons stocks and reopened
closed Cold War storage facilities.
Gen. Hodges took command
in November 2014, a few
months after Russia annexed
Crimea and as the U.S. and Europe began to recalibrate their
security posture following
Moscow’s military shift. Since
then, tensions between Russia
and the North Atlantic Treaty
Organization have increased
markedly across the region,
from the Baltic Sea in the
north to the Black Sea in the
east.
The army commander’s
mission, he has often said, was
to make America’s 30,000 sol-
n-
BY JULIAN E. BARNES
effort, is the starkest example
yet of high-level resistance.
Mr. Sytnyk said he suspects
that the SBU learned of the
undercover operation at the
State Migration Service after
NABU requested wiretaps.
NABU isn’t allowed to carry
out its own wiretaps and has
to channel requests to the
SBU.
The General Prosecutor’s
Office said the senior migration-service official reported
the attempt to bribe her on her
own initiative. Both the office
and the state migration service
diers in Europe look like the
300,000 deployed during the
Cold War.
“Ben Hodges has been the
most consequential American
Army commander in Europe
since the end of World War
II,” said retired Gen. B.B. Bell,
who held the post from 2002
to 2005.
Whoever gets the post next
will take command of a force
Gen. Hodges has sought to
prepare for any future Europe
conflict in part by finding lessons in wars of the past.
As a young officer during
the Cold War, Gen. Hodges
served on the inter-German
border, studying the territory
he would be called on to defend in any war with the Soviet Union.
The experience, along with
his study of the Napoleonic
wars and World War I, guided
him decades later.
Looking at U.S. Gen. John
Pershing’s struggle to supply
American forces 100 years
ago, Gen. Hodges made Army
forces practice supplying
frontline troops. The aim, he
said, was to discourage Russia
from thinking it could attack
in the Baltics without triggering a swift response.
“You have to demonstrate
the ability to move across Europe,” he said, “So any potential adversary says, ‘They can
move fast with a lot of stuff.’ ”
Allied cooperation is vital
to any effective defense of Europe, Gen. Hodges said.
If a war breaks out in Europe today, young American
officers will need to act creatively.
“The junior leader should
have the courage to retask
himself,” Gen. Hodges said.
deny NABU’s allegations that a
ring of migration officials furnished passports for cash.
Lawmakers and other critics of the prosecutor’s office
and the SBU say they are riddled with corruption and are
more focused on enriching
themselves and pursuing political opponents than fighting
crime. Both agencies deny this.
In a speech to prosecutors
last week, Mr. Poroshenko appeared to stand above the fray,
saying the agencies should be
fighting corruption rather
than each other.
ly
.
By Jessica Donati in
Washington and James
Marson in Moscow
of officials at the State Migration Service allegedly furnished
passports and other documents
illegally for cash.
The intervention drew an
unusually stern rebuke from
the U.S., which is supporting
Ukrainian President Petro Poroshenko in his government’s
war against Russia-backed insurgents in eastern Ukraine.
“These actions appear to be
part of an effort to undermine
independent anticorruption institutions that the United
States and others have helped
support. They undermine public trust and risk eroding international
support
for
Ukraine,” the U.S. State Department said on Monday.
The FBI helped set up the
fledgling NABU in 2015 and
has operated an office at the
headquarters of the independent agency for almost two
years. It has detained highprofile figures, including the
country’s top tax official and
the interior minister’s son, and
targeted lawmakers with its
investigations. But it has yet
to score a major conviction
against a high-ranking official,
which it blames on a court
system critics say is open to
bribery and political pressure.
The tax official was arrested for alleged abuse of office and was then released on
bail by a court. The minister’s
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Ukrainian anticorruption
operatives, aided by agents
from the U.S. Federal Bureau
of Investigation, were closing
in on an alleged criminal gang
of government officials in November when the tables were
suddenly turned.
VASYL SHEVCHENKO/PACIFIC PRESS/ZUMA PRESS
Ukraine Agencies
Feud, Thwarting
Corruption Probe
Polish Prime Minister
Szydlo Steps Down
BY DREW HINSHAW
Poland’s Prime Minister
Beata Szydlo resigned on
Thursday and Finance Minister Mateusz Morawiecki was
nominated to replace her.
The ruling party, Law and
Justice, had long discussed
changing prime ministers before the end of this year—the
midpoint in parliament’s fouryear term—in a bid to revitalize its posture ahead of local
elections next year and legislative elections in 2019.
There would be no other
immediate cabinet changes in
the government Ms. Szydlo
has led since November 2015,
a Law and Justice spokeswoman said.
The change in leadership elevates Mr. Morawiecki, a former economics lecturer and
banker who presided over an
increase in social spending
during his two years as finance minister. Under Mr.
Morawiecki, the government
allowed Poles to claim retirement benefits as early as age
60 and launched a monthly
welfare stipend of 500 zloty
($140) per child for many Polish families. The latter program, which aims to boost Poland’s population, has fueled
the ruling party’s commanding
lead in opinion surveys, pollsters say.
More recently, however, Mr.
Morawiecki has expressed
concerns to other cabinet ministers about the long-term effect of those popular measures
on Poland’s budget deficit, according to two of his advisers.
The deficit was last projected
at 2.6% of gross domestic
product for this year.
In coming days, Law and
Justice is set to push through
enormous changes to the
country’s judicial and electoral
laws. About a third of the
country’s Supreme Court
judges will be forced to retire
almost immediately, easing the
promotion of several younger
judges the ruling party considers more amenable to its conservative, nationalist program.
Under the legislation, parliament, where Law and Justice
holds an absolute majority,
would also win a greater say
in appointing future judges,
including to a new chamber of
The ruling party is
set to push through
huge judicial and
electoral changes.
the court that would oversee
election-related issues.
Mr. Morawiecki has voiced
support for those bills, even as
the European Union is weighing legal proceedings against
Poland on the grounds that
the judiciary overhaul violates
the union’s rule-of-law standards. Mr. Morawiecki only
last year joined the ruling
party, whose leaders have accused the EU of meddling with
Poland’s democratic institutions and have been critical of
its decisions on other issues.
FROM PAGE ONE
BITCOIN
Continued from Page One
based advisory firm. “We’re
seeing the actual illustration
of speculation. Somebody
should take a snapshot of this
and put it in the dictionary.”
The gains were even causing alarm among some bitcoin
proponents. “I’m 90% certain
this is a bubble,” said Stephen
Pair, the CEO of BitPay, a firm
that facilitates bitcoin payments for businesses. “I just
don’t know if it reverses itself
at $20,000 or $100,000.”
Even though he was anxious about the gains, Mr. Pair
said he was also seeing growth
at his own firm. BitPay’s revenue has quadrupled this year,
he said, and the firm this week
announced a $30 million fundraising round to help manage
the growth.
Still, Mr. Pair said he wasn’t
sure what was pushing the
price up so dramatically right
now. “It’s not something we
are necessarily happy about,”
he said. “I don’t like this crazy
unsustainable volatility.”
Neither do some big banks.
Many are balking at offering
customers access to derivatives that will be based on bitcoin, largely because of the
currency’s volatility.
Plenty of investors aren’t
scared off, though. Bitcoin’s
momentum has drawn in new
buyers, many of whom are
regular folks attracted by talk
of huge gains.
“Two of my members
bought houses,” with the
money they have made from
bitcoin this year, said Brian
Hoffman, the CEO of OpenBazaar, an online retail site that
uses bitcoin. “When you’ve got
friends and family buying cars
and buying houses, it becomes
very enticing to get in.”
Daily trading volumes have
been above 400,000 for most
of the past week, well above
an average of around 250,000
for much of the year, according to cryptocurrency services
firm Blockchain.info.
Wednesday and Thursday’s
gains were so stunning they
had bitcoin specialists struggling to explain them. Sheer
momentum remains the big-
1,560%
Bitcoin’s year-to-date gain as of
Thursday afternoon
gest driver to many.
Beyond this, there are some
internal developments related
to bitcoin. One was the release
Wednesday of a software program called Lightning Network
that is designed to increase
bitcoin’s transaction capacity,
something that has been limited. That could help increase
the flow of bitcoin trading.
Another is the looming
launch of bitcoin futures by
CME Group and Cboe Global
Markets. Trading of these contracts, expected within the
next two weeks, holds the
promise of bringing more institutional investors into the
bitcoin market because it
would allow them to hedge
their exposures and bet
against the price of the currency.
Currently, it is difficult to
make such wagers or protect
holdings of bitcoin from price
swings. This has kept many
bigger investors out of the bitcoin market.
And then there were explanations that sound silly, but
underscore the mania surrounding bitcoin: an online
game called CryptoKitties.
Launched over the weekend, this online game allows
players to bid for computergenerated images of cats. Bids
are made using ethereum, a
virtual currency similar to bitcoin.
While the game seems insignificant, OpenBazaar’s Mr.
Hoffman said it quickly went
viral and could be construed
as one of the first mainstream
applications of cryptocurrencies. CryptoKitties said the
highest bid topped $100,000.
“Within my team, nobody is
talking about anything else,”
Mr. Hoffman said.
No matter how crazy an explanation sounds, anything
that indicates the bitcoin network may be able to reach a
larger scale in terms of capacity and utility is viewed as a
positive for the currency and
its price.
Meanwhile, bitcoin is also
entering new markets. A year
ago, Japan and South Korea
were minor in terms of bitcoin
transaction volume. Now,
Japan alone comprises about
60% of all bitcoin trading.
South Koreans have also
rushed into bitcoin, pushing
the price on exchanges in that
country even higher than on
U.S. ones. On Bithumb, the
largest exchange in Korea, bitcoin on Friday morning in
Seoul was trading at $20,280,
well above where it was trading in the U.S.
Traders say the younger
generation in Korea is playing
a prominent role in driving the
price higher there.
“Koreans have been more
comfortable with technology
and digital assets for longer
than most,” said Arthur Hayes,
founder and chief executive of
BitMEX, a bitcoin-derivatives
exchange in Hong Kong.
Such interest is growing despite questions about just how
bitcoin works and security issues around it.
Bitcoin’s price shrugged off
news Wednesday of the theft
of nearly $70 million worth of
bitcoin from a cryptocurrencymining service called NiceHash following a security
breach.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A11
IN DEPTH
EVA DOU/THE WALL STREET JOURNAL
Continued from Page One
and death for opinions expressed in private. In the decades since China launched economic reforms after Mao’s
death, prosperity and social
mobility created room for more
personal freedom and expression. Now China appears to be
reverting to old form, empowered by new digital surveillance
tools.
That means ordinary people
such as Mr. Chen increasingly
find themselves investigated
and punished for imprudent
comments they thought were
private. It is now easy for a regular citizen to step over the
brink, with a stray comment to
family or friends screenshotted
into evidence, without the need
for an informant.
Marked as trouble
‘I thought, I haven’t done anything wrong, have I? I’m lawabiding. So I went in. Once I arrived, they wouldn’t let me leave.’
Chen Shouli, construction supervisor
Percentage of censored WeChat posts* that contained the following
words:
Corruption
18.2%
Communist
17.2
Rape
11.9
Rule of law
11.7
Socialism
11.6
Illegal
11.3
Mao Zedong
Corrupt
Xi Jinping
Human rights
9.6
9.0
8.8
8.2
*Based on 511 censored posts found in an analysis of 36,000 unique public-account posts
between June 2014 and March 2015
THE WALL STREET JOURNAL.
Source: The Citizen Lab
found 4% were censored.
Software employed by
WeChat appears to automatically scrub posts containing
words on a blacklist, which is
continually amended by human
censors, according to Citizen
Lab. The technology has now
advanced to identify images
deemed sensitive, which are
then removed during transmission without the sender being
alerted to the disruption.
The government has introduced rules and judicial interpretations making it a crime
punishable by up to three years
oyuan more than a decade ago,
after he was accused of embezzling a payment from an applejuice factory, says his wife, Sun
Wenjuan. Mr. Wang denied the
accusation and called his dismissal unjust. He spent years
petitioning government offices
from Zhaoyuan to Beijing for
redress, landing him repeatedly
in detention and alienating local
officials in the process, she
says.
After he called President Xi
Jinping a “baozi”—a steamed
dumpling—in one WeChat post,
and Chairman Mao a “bandit”
department ruled that several
posts endangered national security, disbarring him as punishment.
The Zhaoyuan People’s
Court, which sentenced Mr.
Wang, didn’t respond to a request for comment, nor did the
Shandong provincial justice department, which disbarred Mr.
Zhu.
Stern treatment is now being
meted out to ordinary people
without records of prior offenses, according to Mr. Zhu
and other lawyers.
“In the past, there were
stage, it looks really cool.”
David Wm. Sims, the bass
player for the Jesus Lizard,
said his younger self would be
surprised to know he would
still be performing songs like
“Mouth Breather” and “Bloody
Mary” at age 54—and even
more surprised that people still
showed up to hear them.
“There was no model for
this,” he says.
At the YMCA, where Michael
Jackson’s “Beat It” and other
peppy pop hits played over the
loudspeakers, Mr. Yow called
out treadmill settings to his
girlfriend, running on a nearby
machine.
When he’s not exercising or
howling lyrics onstage, Mr. Yow
is soft-spoken and droll. He
wears hearing aids in both
ears. In Los Angeles, he is an
actor and has a full-time job
digitally retouching images for
the movie and television industry.
He lives with his girlfriend,
Ellen Philips, a punk-musicianturned-real-estate agent, and
their three cats. His diet now is
mostly paleo. Beer has been
(almost) eradicated, ending his
former routine of quaffing
beers throughout rehearsals.
The Jesus Lizard was resurrected once before, in 2009.
During a concert in Nashville,
Mr. Yow made a mock apology
to the audience about his
paunch, then executed some
sit-ups mid-song. Now he’s doing some 300 crunches a day,
but says his belly has proved
stubborn.
Mr. Yow says some recent
vocal training is helping the
singer better hit the correct
key, but the kind of workout he
gets onstage is hard to replicate. “I should be yelling and
screaming the whole time I’m
running at the gym, because
that’s what’s going on” during
the concerts.
The band’s five upcoming
concert dates, plus a music festival in Houston, are all sold
out. Band members say they
decided against additional gigs
because of commitments to
their post-Lizard families and
careers. Mr. Sims, for example,
is a CPA in New York and controller of a music management
company.
A longer tour would also increase the chances of injury for
their singer. “It puts David ultimately at too much risk, no
matter how much he bears
down and prepares for it,” says
the band’s longtime booking
agent and manager, David “Boche” Viecelli.
Launched in Chicago in 1989,
the Jesus Lizard was a peer of
Nirvana, Sonic Youth and other
forces in the alternative-rock
movement that erupted in popularity in the early ’90s.
The group, which also included guitarist Duane Denison
and drummer Mac McNeilly,
had a sound that stood out:
menacing yet intricate instrumentals combined with unhinged vocals by Mr. Yow. Before disbanding in 1999, the
group released six albums and
played about a thousand concerts, widely cited as some of
the most intense rock performances of the era.
That reputation owes much
to Mr. Yow’s performance style.
Typically shirtless by song two,
he crawled on all fours and
draped himself on audience
members and security personnel.
He often tried surfing on the
hands of audience members to
the rear of the club, where the
band’s sound man was stationed. “That can be exhausting, like swimming upstream,”
he says.
One of the only Jesus Lizard
mementos displayed in his
house is a black-and-white photograph of his mother and father watching him perform in
n-
Mo Shaoping, rights lawyer
Police grilling
Mr. Chen says officers grilled
him for hours on everything
from whether he has religious
beliefs to what he thinks about
China’s leaders and blacklisted
dissidents. He says he wasn’t
mistreated.
He and several cellmates
took turns taking cold showers
in the hot weather, then sat
around on stools because lying
down wasn’t allowed for most
of the day, he says. At night, unable to sleep, he ruminated
about his situation. His cellmates, he says, thought it hilarious that he was there for a
WeChat comment.
After his release, Mr. Chen
says, relatives, friends and officials all told him to learn his
lesson and move on. Still, his
detention nagged at him more
than he anticipated. “I’ve lost
some friends,” he says. “Some
Stern treatment is
being meted out to
ordinary people with
no prior offenses.
people now speak to me with
reserve.”
Security cameras were installed outside his apartment
building. Mr. Chen doesn’t believe they are there because of
him.
He and some other villagers
discussed his detention recently
over a lunch of dumplings and
fiery baijiu grain liquor. A
neighbor said it was Mr. Chen’s
own fault for writing the comment. “There are things you can
say, and things you can’t say,”
another neighbor piped in.
“If you were punished, you
surely did something wrong,”
said the ruddy-faced village
chief, Yang Cunfu. “That online
post had too big an impact on
society.”
Mr. Chen responded that a
post that starts with “haha”
shouldn’t create such a stir: “I
still don’t think I did anything
wrong.”
—Josh Chin contributed to
this article.
ROGER KISBY/GETTY IMAGES
Continued from Page One
of aging punk, heavy metal and
aggressive rock musicians. If
you want to leap around onstage like a maniac while delivering throat-shredding vocals
at machine-gun tempos, you
will need to hit the gym—hard.
During the Jesus Lizard’s
heyday, working out was never
part of the routine. Lugging
equipment on tour and playing
full tilt for an hour-plus almost
nightly kept the young band
members sufficiently fit. Now,
Mr. Yow says, “I can’t do stuff
that I could do when I was 34.”
At some shows in the 1990s,
just escaping hospitalization
was a victory of sorts. Mr. Yow
was once laid out by a bottle
thrown from the audience in
Dallas and knocked out after
stage-diving in Zurich. He got
stitches in his scalp in Norfolk,
Va., after an unfortunate headbanging incident.
“All of a sudden everything
on one side of the world turned
red. Gushing,” Mr. Yow recalls.
“I don’t want to get hurt and I
don’t have respect for people
who intentionally do it. But if
you do end up bleeding on
in another, Mr. Wang was arrested, court records say. A local court in April sentenced him
to two years in prison, a term
that was reduced to 22 months
after a retrial last month.
The prison sentence “was
clearly motivated by retaliation,” Ms. Sun says. “The local
officials had their eyes on him.”
Mr. Wang sobbed after the
initial verdict, shocked that
WeChat comments could draw
such a harsh penalty, says Mr.
Zhu, his lawyer. Shortly after
the first sentencing, Mr. Zhu began criticizing the justice system in posts on the Weibo microblog. The provincial justice
Bad Words
no
TOUR
of prison time to spread what
officials deem “false rumors.” A
new rule this fall made any individual who forms a private
chat group legally responsible
for comments posted there by
others.
Most people caught posting
objectionable content just see it
deleted and sometimes receive
a warning. Heavier punishment
usually is reserved for people
already targeted by authorities
for being known political critics
or social activists, or for having
a record of past offenses.
Wang Jiangfeng lost his job
at a local agricultural cooperative in the eastern city of Zha-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
nological
difficulties
of
monitoring text messages,
emails, blogs and chat sites.
Messaging apps, and WeChat in
particular, are its latest challenge.
WeChat is China’s most popular social-media platform, by
far, with users sending 38 billion messages each day. It isn’t
clear how many private WeChat
messages get deleted by Tencent because of government
censorship
requirements.
WeChat also has a function to
post publicly. Citizen Lab, an internet research center at the
University of Toronto, examined
36,000 public posts in 2015 and
EVA DOU/THE WALL STREET JOURNAL
Mr. Chen is now marked as a
troublemaker by local officials
and police, who have warned
him to mind what he does.
Some friends, he says, now keep
their distance.
One recent afternoon, he argued with his wife about the
detention in their cramped onebedroom apartment on the
edge of the small eastern city of
Puyang.
“This incident is over,” she
told him.
“You don’t understand,” he
shot back. “It’s far, far from
over.”
Police in Puyang didn’t respond to a request for comment, nor did Tencent Holdings
Ltd., which owns WeChat.
In September, amid a
drunken-driving clampdown in
the city of Jieshou, auto mechanic Yang Qingsong used an
expletive in a WeChat post to
question the intelligence of police for doing checks in the rain.
Police detained Mr. Yang for
five days, saying his post to a
group with 241 people “created
negative social effects,” according to an account of the incident the police posted on
Weibo, China’s equivalent of
Twitter.
“Had I known it would be so
serious, I wouldn’t have sent it,”
says Mr. Yang, 24, who set up
his own auto-repair shop last
year.
Unlike postings to a blog or
Twitter-like microblog, which
are generally public platforms,
chats on messaging apps such
as WeChat are more private,
limited to members accepted
into a group. Larger ones have
to meet stricter registration
conditions imposed by the company, and WeChat caps groups
at 500.
Zhu Shengwu was an intellectual-property lawyer in cases
involving technology firms such
as search engine Baidu Inc. before taking on a free-speech
case this year. He says that
monitoring closed chats is akin
to eavesdropping in someone’s
home.
“We already can’t speak on
blogs,” says Mr. Zhu. “Can we
draw a bottom line somewhere?
Can we speak a little bit in our
living rooms?”
Chinese dissidents and foreign academics had predicted
that information dispersed over
the internet and through mobile
communications would loosen
the government’s grip. But Chinese authorities have surmounted, one by one, the tech-
she sells insurance.
After first his father and
then his mother were diagnosed
with cancer, the family’s savings
were drained paying medical
bills. His unhappiness with the
medical system drove him to
seek information in WeChat
groups, he says. He wondered
whether the factory pollution
ravaging the surrounding countryside caused his parents’ cancers. He says he began calling
the local environment bureau to
report violations.
As he read and chatted more
on his phone, he learned that
some major nations had free
universal health care and that,
also unlike many other world
powers, China had autocratic
rule.
“Gradually I became aware
of it all,” says Mr. Chen. “My
thinking didn’t develop in a day
or two. It slowly, slowly accumulated.”
When Mr. Chen reported to
the local police station on Sept.
19, he says, officers made it
clear they had seen his WeChat
post. They asked him to confirm that his WeChat name was
“The Flash of a Thought.” Then
they asked him to pull up the
chat group on his phone.
ly
.
CENSOR
these kinds of cases at times,”
says Mo Shaoping, a prominent
human-rights lawyer. “But it
wasn’t like now, where they are
seizing people so blatantly and
confidently.”
China’s Public Security Ministry, Justice Ministry and Cyberspace Administration didn’t
respond to requests for comment.
Mr. Chen, the construction
supervisor in Puyang, says that
while he wasn’t an activist, he
was interested in politics and
social issues—frequent topics of
the chat group “Drips of Water
Wear Through Stone.” Some
talk in the group touched on
Guo Wengui, a self-exiled billionaire living in New York who
frequently used Twitter and
other social media outside
China to accuse senior Chinese
officials of misconduct. Mr. Guo
says he wants to expose what
he calls China’s “kleptocrats”
and bring rule of law to the
country.
Censors and police wanted
to squelch comments from Mr.
Guo that leaked through the
firewall and to prevent any disruption to a critical Communist
Party congress in October to reappoint Mr. Xi as China’s top
leader.
Politically minded Chinese
complained of a tide of chatgroup shutdowns. Mr. Mo, the
rights lawyer, said his WeChat
account was suspended in October, after he forwarded a news
report about Mr. Guo to a few
friends in one-on-one chats.
Though he has defended many
dissidents, including the writer
and eventual Nobel Peace Prize
winner Liu Xiaobo, he says he
never before lost his WeChat
account.
Mr. Chen typed his joke at
10:45 p.m. on Sept. 15, starting
with “Haha.” Alluding to an allegation made by Mr. Guo, he
wrote that if the rumors are
true about an affair between a
TV singing-competition star
and someone surnamed Meng,
then that would make the
singer’s husband a cuckold.
Mr. Chen named the singer
and her husband, but only used
the official’s surname. For politically minded Chinese, the
“Meng” clearly referred to
Meng Jianzhu, who oversaw the
nation’s law-enforcement system. Mr. Meng didn’t respond
to a request for comment submitted for him through China’s
Foreign Ministry.
Mr. Chen doesn’t know how
his comment got flagged. While
police often monitor the socialmedia accounts of known social
activists, Mr. Chen had no previous run-ins with authorities,
he says. He thinks the official’s
name he mentioned may have
been on a watch list, or perhaps
someone among the chat
group’s 453 members tattled.
Mr. Chen, who stands shy of
5 feet tall, recalls growing up
poor, feeling hunger pangs and
scrounging for food. Donggancheng village, outside Puyang, had no electricity, and the
family home was made of
blocks of mud mixed with
wheat stalks. His father, one of
only three college graduates in
the village of 3,000, was the local doctor.
Like many of his neighbors,
Mr. Chen now has a car and a
smartphone. He and his wife
live in a two-story apartment
building near where Donggancheng village once stood.
Together they run a small shop
selling smartphones, while he
works construction jobs and
David Yow of the Jesus Lizard performs in 2009 in Monticello,
N.Y. ‘I can’t do stuff that I could do when I was 34,’ he says.
Austin, his hometown, in 1996.
“Miraculously, my pants always
stayed up in Austin,” he says.
Does he feel some obligation
to perform the physical equivalent of his greatest hits? “I’ve
wrestled with it for a long time,
even back in the old days,” he
says. “How much of a responsibility do I have to try and fulfill
what the people in the audience would like to see?”
The singer has hesitations
about plunging back into the
role of rock ’n’ roll stuntman.
On the eve of the Jesus Lizard’s
previous reunion concerts, he
told Mr. Sims he’d be toning it
down. The bassist assured the
singer, then 48, that was OK.
The group didn’t want him doing anything unsafe.
“He was so relieved and so
happy. It was an emotional moment and he was a little choked
up about it,” Mr. Sims says.
Onstage, however, Mr. Yow’s
old reflexes kicked in. “The
first notes of the first song,”
the bassist recalls, “I look up
and see the bottoms of David’s
boots sailing away.”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A11A | Friday, December 8, 2017
NY
THE WALL STREET JOURNAL.
* *
GREATER NEW YORK
City Struggles to Place Teachers From Excess Pool
Education department
hoped to find jobs for
hundreds since Oct. 15,
but slots didn’t open up
BY LESLIE BRODY
New York City found classroom jobs since mid-October
for only a fraction of the
teachers in a pool of excess
faculty that cost $150 million
last year, despite predicting
there would be up to 400 vacant positions for them.
Only 41 teachers from the
pool were assigned to classrooms in yearlong spots since
Oct. 15. The city Department of
Education had warned princi-
pals that it would send such
teachers to fill openings after
that deadline. Officials said
Thursday that there were
fewer slots than expected because some schools lost enrollment and didn’t need more
staff, or had teachers returning
from leaves.
City officials sparked an outcry last summer by announcing
they planned to use a muchcriticized pool of roving substitutes to fill yearlong spots. Opponents said many weak
teachers would be forced on
students and principals, over
their objections. On Thursday
they reiterated their concerns,
and said teachers from this
pool were sent disproportionately to schools where students
need the most help.
The Education Trust-New
York, which advocates for
equal access to quality instruction, said its analysis showed
the schools getting assignments from the pool had, on
average, higher percentages of
students who are low-income,
black or academically struggling than the city as a whole.
“This raises major equity concerns,” said executive director
Ian Rosenblum.
Department officials said it
made sense to fill vacancies
from this pool of tenured
teachers already on the payroll,
who often serve as substitutes
in monthly rotations. The fluctuating pool, which had about
1,200 teachers on the first day
of school in September and
884 on Dec. 1, is made up
largely of teachers who lost positions when schools closed or
downsized, or following disci-
The officials said schools
had chosen to hire another 318
teachers from the pool since
mid-August in permanent posts
or provisional ones that could
be lasting if the teachers get
good reviews.
Some principals say they
have hired good teachers from
this pool, but caution that
many teachers who linger in it
for years are poor performers
or don’t even try to get jobs.
Randy Asher, the department’s adviser for talent management, said the placements
since Oct. 15 were a service to
students who needed qualified
teachers and stability, and he
“worked hand in hand” with
principals in deciding on assignments in subjects where
41
Pool teachers who got yearlong
classroom jobs since mid-October
plinary cases. Department officials said none of the 41 placed
since Oct. 15 had entered the
so-called Absent Teacher Reserve after a legal matter or
disciplinary case.
teachers are licensed.
Jenny Sedlis, executive director of StudentsFirstNY, a
pro-charter group that pushes
for stringent teacher ratings,
objected to this deployment
from the pool. “Parents don’t
want them. Principals don’t
want them,” she said by email.
Charter schools, which are
publicly funded but run independently of the district, do
their own hiring and aren’t assigned any teachers from the
pool.
The 41 teachers were placed
in 20 of the city’s 32 districts,
with the highest number, six, in
Manhattan’s District 2, which
includes the Upper East Side,
and south of 59th Street on the
West Side.
Airports
To Receive
$1.1 Billion
In Funding
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CAITLIN OCHS FOR WALL STREET JOURNAL; CAROL ROSEGG (BELOW)
ly
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BY PAUL BERGER
Magician Scott Silven, above, stars in ‘At the Illusionist's Table.’ During ‘The Dead, 1904’ by the Irish Repertory Theatre, below, the audience joins the cast at the main table.
Dinner and a Show—Performed at Your Table
no
At some New York City theaters these days, it is hard to
tell which is the bigger sell:
the show or the supper that
accompanies it.
A number of theatrical presenters are combining food
and drama as an immersive experience with a gourmet twist.
The meal is essentially part of
the script, with performers
and audience members sometimes feasting side by side.
Take “At the Illusionist’s Table,” a show at the McKittrick
Hotel, the Chelsea venue that
also is home to
FOOD &
the long-running
CULTURE
immersive hit,
“Sleep
No
More.” Billed as
“an evening of culinary delight
interwoven with illusion, mentalism and storytelling,” the
production runs through Jan.
14. It stars Scott Silven, a magician who has gained a following in the United Kingdom.
Mr. Silven performs a series
of tricks as a three-course
meal is served to an audience
of 28, which is seated at a dining table. The food is loosely
connected to the magic and
storytelling—the main course
of roast chicken paired with
root vegetables has a rustic
feel that is intended to tie in
with Mr. Silven’s tales of
growing up in Scotland.
But for Mr. Silven, who
doesn’t eat himself during the
show, the point is more that
the dining table affords an intimacy that a traditional stage
simply lacks. “It seemed like
such an opportunity to connect with an audience on a
deeper level,” he said.
Other show-supper hybrids
are rooted in a similar upclose spirit. In the case of
“The Dead, 1904,” an adaptation of the James Joyce story
“The Dead,” which is being
presented by Irish Repertory
Theatre through Jan. 7, the
cast and audience gather in a
dining room to share a holiday
meal central to the drama. A
select number of the 57 patrons even join the actors at
the main table.
Irish Rep co-founder Ciarán
O’Reilly concedes it would be
possible to do the show without feeding the audience. “But
n-
BY CHARLES PASSY
On Stage and on the Menu
“At the Illusionist’s Table”
“The Dead, 1904”
“Sweeney Todd”
What you see: A one-man
show with illusionist Scott Silven that combines magic and
storytelling.
What you eat: A three-course
meal that runs the gamut from
seafood risotto to roast chicken
to chocolate torte.
Info: At the McKittrick Hotel’s
Heath space; mckittrickhotel.com.
What you see: A theatrical adaptation of James Joyce’s story,
“The Dead.”
What you eat: A holiday-style
meal with turkey and sides, inspired by dishes mentioned in
the Joyce story; pre-dinner beverages include Irish whiskey.
Info: Presented by the Irish
Repertory Theatre at the
American Irish Historical Society, 991 Fifth Ave.; irishrep.org.
What you see: A revival of
Stephen Sondheim’s Tony
Award-winning musical about a
murderous barber whose victims are turned into meat pies.
What you eat: A meat or vegetarian pie and mashed potatoes. From Dec. 19-31, a special
holiday pie will be on the menu.
Food is a separate, optional
purchase.
Info: At the Barrow Street Theatre; sweeneytoddnyc.com.
that would seem mean-spirited,” he said.
For at least one presenter,
the supper-and-a-show concept
is becoming an entire business
model. The Spring Street Social
Society is a membership club
that regularly stages dinners
with theatrical elements. Last
month, the group put on its
most elaborate event to date, a
full-production musical, billed
as “Secret Supper: The Musical,” held at a Harlem space.
Even the waiters joined in the
proceedings, dancing as they
served the audience their meals.
“This is the project we’ve
been building to,” said Spring
Street Artistic Director Amy
Virginia Buchanan.
These food-and-theater im-
mersive events aren’t new to
the New York scene. Consider
“Tony n’ Tina’s Wedding,” the
Italian wedding-as-drama extravaganza, replete with pasta,
that became a sensation in the
’80s. Or “The Song of Singapore,” a swing-inspired musical that played in the early
’90s and had audiences drinking and dining in keeping with
LEFT TO RIGHT: CAITLIN OCHS FOR WSJ; CAROL ROSEGG; JOAN MARCUS
New York theaters pair gourmet food and performances in an immersive experience
the story’s nightclub setting.
As to why the concept is
coming back, theater and dining-industry insiders say it
speaks to the current interest
in immersive events: “Sleep
No More,” for example, will
mark its seventh anniversary
next year. But that doesn’t
mean the events are any easier to stage because presenters
are offering both a meal and
entertainment.
Moreover, in an era when
so many diners have dietary
restrictions of one sort or another, the meal part of the
equation can become all the
more complex, presenters say.
“You’ve got to have everything
from gluten-free alternatives
to kosher meals,” said Cesar Hawas, the McKittrick Hotel’s special envoy.
And in the case of “The
Dead, 1904,” the Irish Rep had
to nix the idea of offering
goose, even though it was the
holiday-meal centerpiece in
the Joyce story. The concern
was that New Yorkers are just
not as familiar with the oldschool fowl favorite. “You have
to grow up with it,” said Mark
Russell, chef with Great Performances, the catering company that is working with Irish
Rep on the production. The caterer substituted turkey.
In combining supper and
show, presenters can charge a
much higher ticket price:
Seats for these events typically go well above $100. In
the case of “The Dead, 1904,”
general admission is $300 and
“premium” seating—meaning
at the performers’ dining table—is $1,000. The show also
offers performance-only tickets, with no food, for $150.
Still, presenters say they
don’t necessarily turn a
greater profit than they would
with a non-dinner show because expenses are higher.
Spring Street Social Society
says it didn’t make any money
on its recent musical, which
cost $170,000 to produce.
Not that the Spring Street
team has any regrets, saying
they appreciated the opportunity to think big and explore
this burgeoning genre of
show-meets-supper. “This has
been a really incredible and
satisfying experiment for us,”
Ms. Buchanan said.
The Port Authority of New
York and New Jersey on
Thursday approved more than
$1 billion to be spent next year
on construction at the region’s
airports.
Commissioners on the bistate agency’s board passed an
$8 billion budget for 2018
which includes $3.4 billon for
capital expenditure, $3.2 billion for operating expenses
and $1.3 billion to service
debt.
In addition to the region’s
three major airports, the
agency’s assets include six
bridges and tunnels, the 16acre World Trade Center site
and the Port of New York and
New Jersey, the largest port
on the East Coast.
Next year, one-third of the
agency’s capital budget will be
directed toward the airports.
At a press conference following the meeting, the agency’s
vice chairman, Jeffrey Lynford, noted that the airports
are a major source of revenue
and need to be updated.
Profits from the airports—
as well as bridges and tunnels,
such as the George Washington Bridge and the Lincoln
Tunnel—help finance the Port
Authority’s capital program.
They also help to offset
losses from facilities such as
the PATH rail system, which is
expected to run at a deficit
next year of $313 million.
The agency anticipates net
operating income in 2018 of
$1.5 billion.
The largest airport capital
expenditures next year will be
$578 million toward an $8 billion redevelopment of LaGuardia Airport in New York, and
$167 million toward a $2.3 billion redevelopment of Terminal A at Newark Liberty International Airport in New
Jersey.
During the board meeting
in Jersey City, N.J., the Port
Authority’s Executive Director,
Rick Cotton, said the agency is
projecting a record number of
airline passengers this year:
133 million people, up 1.7%
over last year.
The agency’s chief financial
officer, Libby McCarthy, told
commissioners that the Port
Authority expects agencywide
operating expenses in 2018 to
grow by $61 million, or 1.9%,
compared with 2017.
Ms. McCarthy said the
agency could cover those increased expenses due to a projected increase in revenues of
2.5%, or $127 million.
Commissioners approved a
dozen other spending items at
the board meeting.
They also approved an increase in the budget to raise
the roadway of the Bayonne
Bridge so that a larger class of
container ship can call at the
port’s busiest terminals in
Elizabeth and Newark—both in
New Jersey.
The budget was raised to
$1.69 billion from $1.3 billion.
The Port Authority’s chief
of major capital projects, Steven Plate, said the Bayonne
Bridge project’s design hadn’t
been well thought through,
while the agency’s chairman,
Kevin O’Toole, described the
project as a “fiasco.”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A11B
NY
* *
GREATER NEW YORK
he sought to cover up the
more than $400,000 he embezzled from foreclosure accounts. He used these funds to
pay for his unsuccessful 2005
bid for Brooklyn district attorney, according to prosecutors.
Mr. Sampson, 52 years old,
was also indicted on embezzlement charges, but the trial
judge ruled these occurred beyond the statute of limitations.
The government is appealing
this ruling.
Earlier this year, Mr. Sampson, who previously served as
Senate minority leader and
chairman of the Senate’s ethics committee, was sentenced
to five years in prison and is
now incarcerated in Cumberland County, N.J.
Outside
the
courtroom Thursday, his lawyer
said Mr. Sampson “was hoping
for an appropriate result on
this appeal.”
On Thursday, a three-member panel of judges from the
FIRE ALARM: Firefighters battled a blaze Thursday morning at a four-story building in the Bedford-Stuyvesant section of Brooklyn.
GREATER NEW YORK WATCH
CONNECTICUT
Gov. Malloy Warns
About Fund Shortfall
Gov. Dannel Malloy is sounding the alarm about the projected solvency of Connecticut’s
transportation account, warning
that the state may not have the
money to pay for many road and
bridge-improvement projects.
Lawmakers, he says, must
take steps to replenish the Special Transportation Fund, which
was hit by a loss in gas-tax revenue, a shift to more fuel-efficient
vehicles, increased debt payments and other factors.
The Democrat’s administration released a 10-page report on
Thursday that highlights how
the Special Transportation Fund
is projected to be in deficit for a
number of years beginning in
2019.
The report includes a long list
of projects potentially at risk
throughout Connecticut.
Mr. Malloy says higher bus
and rail fares, staff reductions
and cutbacks in highway maintenance, including snow plowing,
could be imposed if nothing is
done.
—Associated Press
EDUCATION
n-
SETH WENIG/ASSOCIATED PRESS
Teacher Fired Over
Bathroom Incident
no
Former state Sen. John Sampson is serving a five-year sentence.
SIT LIKE AN ASTRONAUT
A state arbitrator has fired a
tenured teacher in New Jersey
for confining two students in a
bathroom.
The arbitrator found Donna
DeMarco was guilty of conduct
unbecoming for using the con-
KATHLEEN PHALEN-TOMASELLI/POST STAR/ASSOCIATED PRESS
The court that heard
the appeal vacated
the convictions of two
other state lawmakers.
ly
.
Lawyers for former New
York state Sen. John Sampson
argued to a federal appeals
court Thursday that his public-corruption
conviction
should be overturned and his
prison sentence was unreasonable.
Mr. Sampson, a Democrat
who represented Brooklyn
neighborhoods including East
New York and Canarsie, was
convicted of obstruction of
justice and lying to investigators in 2015. Prosecutors said
U.S. Court of Appeals for the
Second Circuit heard the government’s appeal of the dismissal of the embezzlement
charges and Mr. Sampson’s
lawyers’ appeal of his conviction. A lawyer for Mr. Sampson argued that the government didn’t provide sufficient
evidence Mr. Sampson intended to deceive, so he
couldn’t be convicted of obstruction of justice.
“The fact is, they charged
the wrong crime,” said his
lawyer, Nick Akerman.
Assistant U.S. Attorney Paul
Tuchmann argued that the
government had proved the
obstruction of justice charge
and that Mr. Sampson was
convicted of trying to obtain
law-enforcement information
about a cooperating witness.
Among other issues raised
in court documents was bribery. Mr. Sampson’s lawyers
wrote that the government repeatedly argued that Mr.
Sampson committed bribery,
but said the crime’s definition
had changed since his trial.
The U.S. Supreme Court’s
ruling last year in the case of
former Virginia Gov. Bob McDonnell, a Republican, narrowed the definition of bribery, raising the bar for what
counts as an official government action.
“The government’s proof
also unquestionably failed to
show Sampson performed an
official act pursuant to McDonnell as part of an illegal
exchange,” defense lawyers
wrote in court documents.
The appeals court that
heard Mr. Sampson’s case vacated the convictions of two
other New York lawmakers,
Dean Skelos, a Long Island Republican, and Sheldon Silver, a
Manhattan Democrat.
Federal prosecutors have
said they would retry both
cases.
co Fo
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BY CORINNE RAMEY
BESS ADLER FOR THE WALL STREET JOURNAL
Arguments Heard Residents Roused From Beds by Inferno but Everyone Escapes Safely
In Ex-Lawmaker’s
Corruption Appeal
Paul Thompson poses with a nearly 12-foot metal statue of Bigfoot outside his business in upstate
New York. He says motorists have been pulling over to gawk at the towering ape-like figure.
finement as a means of punishment or behavioral control.
Ms. DeMarco was a teacher
at Packanack Elementary School
in Wayne. Half of her class of 16
were special-needs students or
had autism.
The teacher testified she used
bathroom confinement as a deescalation technique for two students during the 2015-16 school
year.
She also said she referred to
the children using derogatory
terms in front of colleagues as a
means of venting.
The arbitrator said the namecalling was unprofessional, but
not grounds for termination.
Ms. DeMarco was hired in
2006 and granted tenure in
2009. Her lawyer declined to
comment.
—Associated Press
NEW YORK
Archdiocese Tallies
Abuse Payouts
The Archdiocese of New York
says it has paid slightly more
than $40 million in compensation to 189 people who identified
themselves as victims of clergy
sexual abuse.
The Independent Reconciliation and Compensation Program
ended on Nov. 30, but some additional claims are still being processed.
Mediators evaluated claims
and determined the amount of
compensation.
A spokesman for the Roman
Catholic archdiocese didn’t have
a breakdown on the specific
amounts of payments to each
recipient.
Some of the victims’ claims
date back decades.
The archdiocese also issued
an eight-page report detailing
the efforts it is making to prevent future cases of abuse.
U.S. Catholic leaders have
grappled with a clergy sexual
abuse crisis since 2002.
Dioceses in Brooklyn and on
Long Island also are participating
in victim-compensation programs.
—Associated Press
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THE WALL STREET JOURNAL.
A12 | Friday, December 8, 2017
LIFE&ARTS
THEATER REVIEW
NEON (2)
JOAN MARCUS
Myth
Without
Power
The cast of ‘Once on This Island.’
BY EDWARD ROTHSTEIN
FILM REVIEW | By Joe Morgenstern
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‘I, Tonya’:
We, Fascinated
IMPRESSIVE IN ITS own right,
“I, Tonya” offers an antidote to
those feel-good films about innately noble athletes who manage
to triumph over impossible odds.
This is a feel-real film, a sharpwitted, tough-minded biopic about
Tonya Harding, the 1991 U.S. figure
skating champion and two-time
Olympian who skated rinks around
most of her rivals but never became America’s sweetheart. In the
first of many straight-to-the camera, faux-documentary interviews,
Tonya, played with dazzling ferocity by Margot Robbie, says “I’m a
real person.” That’s never in
doubt, even when the movie trips
or falters. She is really talented
and really wounded, a foulmouthed heroine driven by hurt
and a simmering anger that can
rise to focused fury.
Tonya Harding was a vividly troubled
young woman from a poor, broken family.
She lacked social graces, to say the least. On
the ice, though, she could outdo, outspin
and, in her eccentric way, outgrace almost
anyone of her generation with a formidable
athleticism that found its apotheosis in the
legendarily difficult triple axel. (In the film,
which was directed by Craig Gillespie from a
screenplay by Steven Rogers, the camera
sometimes catches Ms. Robbie’s Tonya pivoting dreamily while she’s standing in shoes
on solid ground.) But her career, along with
the rest of her tumultuous life, was blighted
by scandal when an assailant wielding a police baton attacked her fellow skater, Nancy
Kerrigan, and Tonya, found guilty of hindering the prosecution of the crime, was banished from competitive skating for life.
All of that makes her an unusual subject
for a mainstream film, and a fine one. The
filmmakers use a succession of those
straight-to-the-camera sequences as counterpoint to a smart and painfully funny narrative that follows Tonya from childhood
through celebrity to ignominy and beyond.
As a child she is guided, goaded, prodded
and punched by a mother from hell with a
no
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New York
‘WHY DO WE TELL the story?” asks the
concluding song of the one-act musical
“Once on This Island,” which is now receiving its first Broadway revival since
1990, when it had its premiere to much
acclaim. With a book and lyrics by Lynn
Ahrens and music by Stephen Flaherty
(who later joined forces on “Ragtime” and
“Anastasia”), this 90-minute show begins
as if recounted by storytellers offering a
mythic tale about doomed love in the
French Antilles (drawn from a novel by
Rosa Guy); it ends with an attempt to justify itself. We tell this story, the song assures us, to stir grief, hope and faith. But
this is an unsatisfactory answer given the
story we hear and the drama we watch.
It may be simpler, first, to ask that
question of this imaginative revival at Circle in the Square Theatre. The musical is
being staged again because the score and
book are so often sweet, clever and touching; because they offer a drama that
sounds on contemporary themes in recounting the fate of a love reaching across
race and class; and because this musical,
with its Caribbean-accented score and
characters, could lure a diverse following.
This production is also, on first impression, immediately involving. Director
Michael Arden presents it in a central
arena covered with sand and abutted by
the beginnings of a lagoon, where a boat
lies inverted. The theater’s walls are lined
with blankets, clothes and sandals hung
to dry. A live rooster is in a cage. A goat
is brought by. But this is not some idyllic
retreat. In Dane Laffrey’s scenic design,
this beach is strewn with detritus and
wreckage. A telephone pole, marked with
graffiti, is on the ground. A medic treats
the beach’s residents. Clearly, a hurricane
has hit. This is, as we are told, a place
“eternally at the mercy of the wind and
the sea,” and inhabited by gods who toy
with their human charges.
Then, as the story begins to unfold,
four potently envisioned gods stand over
the action—Agwe, god of the waters
(Quentin Earl Darrington); Erzulie, god of
love (Lea Salonga); Asaka, mother of the
earth (a compelling Alex Newell); and
Papa Ge, demon of death (fearsomely incarnated by Merle Dandridge)—the last
two bending presumed genders.
For this occasion, the 1990 score has
been given a greater nativist twist by the
original orchestrator, Michael Starobin,
joined by AnnMarie Milazzo.
And so we follow the fortunes of a Little Girl (Emerson Davis) orphaned by a
storm and adopted by two marvelously realized residents, Tonton Julian (Phillip
Boykin) and Mama Euralie (Kenita R.
Please see THEATER page A13
Margot Robbie as Tonya Harding,
above, and Sebastian Stan as Jeff
Gillooly, left.
dry-ice affect, Allison Janney’s LaVona.
(When the adult Tonya, in the depths of distress, asks her mother if she ever loved her,
LaVona’s scornful response is, “You think
Sonja Henie’s mother ever loved her?”) As a
skating sensation on a national stage, Tonya
blights her own life by throwing herself into
a love affair with, and then an on-again-offagain marriage to, Jeff Gillooly, the mastermind of the attack on Nancy Kerrigan and,
as portrayed by Sebastian Stan, a violent
notwit—a notch above a nitwit—who
brought out matching violence that Tonya
had learned at her mother’s knee.
The movie burns brightly at its core, and
digital wizardry makes the skating scenes
thrilling. Ms. Robbie never seeks our love
for her tortured character. To the contrary,
she goes all the way with the flinty façade
that Tonya has erected, the defiant pride
she takes in her scruffy blue-collar roots.
Playing against what’s tender and vulnerable in Tonya’s psyche, she creates a fleshand-blood heroine who, as an extra added
attraction, is endearingly funny—and essentially innocent, at least in the film’s judgment, of helping to plan the Kerrigan hit.
“I, Tonya” also covers a lot of territory
that isn’t frozen and shiny on the
surface. Its primary subtext is
class, with unforced emphasis on
economic disparity. Given Tonya’s
hardscrabble background and fractious personality, she will never
be—not that she ever wanted to
be—the ladylike creature idealized
at the time by the world of professional figure skating, and embodied, at least outwardly, by the
lovely and lissome figure of Nancy
(who, ironically under the circumstances, also came from a bluecollar family). More than that, the
movie is astute on the link between aggressiveness and athleticism, and the toxic dependency
spawned by domestic violence.
Just as Tonya in childhood had sought refuge
in the unavailable love of an unconscionable
mother, she keeps returning in what passes
for maturity to the husband who would just
as soon wallop her as caress her.
The film, which was shot stylishly by Nicolas Karakatsanis and edited crisply by Tatiana S. Riegel, is far from flawless. Ms. Janney’s LaVona—who keeps a little parrot
perched on her shoulder as she sits talking
to the camera—is brilliantly bilious, deliciously dry, but she is also, as written, a
one-note harpy who makes you wonder
what in hell’s name could have made her so
malevolent. Several of those interviews
cross the line from drollery into self-enchantment. And as clever—and affecting—as
Mr. Rogers’s script is, it runs temporarily
out of steam during an extended contemplation of the stupidity shared by Jeff Gillooly,
his associates and friends. Yet these bozos
are wondrously, almost definitively dim, especially Shawn Eckhardt (Paul Walter
Hauser), Tonya’s blob of a bodyguard who
tries to pass himself off as an expert on international counterterrorism. It’s the gang
that can’t think straight, led by a guy who
can’t feel without using his fists.
TELEVISION REVIEW | By John Anderson
NETFLIX
MESSY FAMILY
AFFAIRS
Claire Foy
as Queen
Elizabeth II
in ‘The
Crown’
QUEEN ELIZABETH II has enjoyed,
if that’s the word, an astounding 65
years on the throne, making her
Britain’s longest-reigning monarch.
Lois Griffin has spent 16 seasons
ruling the equally dysfunctional
realm of “Family Guy,” which is a
remarkable achievement, too,
though she’s really the Prince
Charles of animated royalty. (Marge
Simpson was installed some three
decades ago and isn’t abdicating
anytime soon.) Still, both Elizabeth
and Lois have been islands of reason
in tempests of insanity; both are
surrounded by chaos, disorder and
an uncertain future. And their mutual problem is men.
That’s certainly the subtext percolating under “The Crown,” whose
highly anticipated second season arrives Friday on Netflix, and whose
central personage is rarely amused.
Why would she be? The series,
scripted by Peter Morgan (“The
Queen”), has thus far portrayed the
young wife, mother and sovereign
(Claire Foy) as beset by faithless,
ego-driven males who sow burdock,
hemlock and nettles in her dynastic
garden.
Chief among her plagues, naturally, is her husband, Philip (Matt
Smith). As the new season begins—
six in all are planned—the Duke of
Edinburgh is sent on a lengthy
goodwill tour of British territories.
During the five-month, seagoing
“stag party,” as someone later dePlease see TELEVISION page A13
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A13
LIFE & ARTS
FILM REVIEW | By Joe Morgenstern
PJ, Christine’a and Christopher ‘Quest’ Rainey.
long with his subjects—starting in
the fall of 2007—his film evokes
the peerless “Hoop Dreams” and
qualifies as a sort of longitudinal
study. But there’s nothing academic
about it. To the contrary, “Quest” is
intimate, warm yet unsentimental
and agreeably rambling, at least for
a while. It’s an extended visit,
squeezed into 104 minutes, with intensely likable people who are doing their best to hold things together, and, if possible, get a bit
ahead. But “Quest” is also a case
study—without claiming to be—of
how one random event can mark a
whole family for the rest of their
lives.
Before that event, the Raineys
seem to be thriving, even though
their finances are chronically
frayed. Chris works at various jobs
in addition to his paper route while
maintaining a basement sound stu-
(see season 1). But he also kicks off “Margo’s”
considerable career of public scandal.
Would Elizabeth trade places with Lois
Griffin? It would be hard to wish Peter Griffin
on any woman. In what passes for a “Family
Guy” holiday special—titled, quaintly, “Don’t
Be a Dickens at Christmas”—there are jokes
about PTSD, strokes, the homeless, stillborn
babies, Matthew McConaughey’s Lincoln commercials and Peter’s perpetual poverty of paternal instinct. (Quagmire: “Your kids getting
a lot from Santa?” Peter: “They’d better ’cause
I didn’t get ’em anything.”) Peter’s lack of holiday spirit will summon up the ghost of Patrick Swayze, who’ll escort Peter through the
Christmases of his past and future. We laugh
in spite of ourselves.
The viewer won’t laugh much at the latest
“Crown,” which suffers, as did the first season, from great swaths of tedious speechifying broken up by electric moments. One of the
latter involves Lord and Lady Mountbatten
(Greg Wise, Lucy Russell) passing each other
on a staircase and sharing such a venomous
exchange of marital recrimination it nearly
takes the breath away. The cause? Edwina
Mountbatten’s affair with the Indian Prime
Minister Jawaharlal Nehru, a story successfully suppressed for decades, but which Mr.
Morgan casually drops into his script, along
n-
Continued from page A12
scribes it, the duke’s crew engages in a riot of
misbehavior. Then, in a gesture of imperial
stupidity, Phil’s best pal and secretary, Mike
Parker (Daniel Ings), writes a letter to their
men’s club regaling its members with the virtues and availability of South Pacific women.
The letter is leaked—the recipients including
Parker’s already unhappy wife, Eileen (Chloe
Pirrie), who’s about to sue for divorce and indict the Windsors by association.
On the political front, there’s no shortage of
feckless Etonians bumming Lilibet out.
Churchill’s successor, Anthony Eden (a flawless Jeremy Northam), launches an ill-conceived foray into the Suez Canal crisis, embarrassing the nation; his successor, Harold
Macmillan (Anton Lesser)—whom Elizabeth all
but gelds during a surgical assessment of Macmillan’s own Suez complicity—is simply not to
be trusted; the photographer Anthony Armstrong-Jones (Matthew Goode) will put an end
to the funk under which Princess Margaret
(the marvelous Vanessa Kirby) has dwelt ever
since the queen put the royal kibosh on her romance with the ex-RAF flier Peter Townsend
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U.S. Forecasts
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Today
Lo W
25 pc
63 t
33 pc
43 s
22 s
23 pc
32 s
35 pc
28 s
22 s
47 pc
18 s
34 s
20 c
35 c
Tomorrow
Hi Lo W
38 24 s
64 39 r
39 30 sn
74 50 s
37 21 sf
38 25 sn
50 33 pc
63 35 s
39 21 pc
39 23 s
64 49 s
52 19 s
50 35 pc
31 21 pc
42 31 pc
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Flurries
Showers
Ice
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41
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43
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39
48
62
42
39
63
46
48
34
45
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41
62
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41
40
89
79
38
37
Today
Lo W
34 sh
49 pc
38 s
73 c
27 s
31 sh
28 sh
67 pc
67 pc
28 pc
28 pc
Tomorrow
Hi Lo W
39 30 sh
63 54 pc
64 38 s
87 72 s
48 32 pc
38 30 pc
37 30 pc
93 60 s
78 65 s
38 31 pc
37 27 s
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
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60
84
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43
41
Peter in ‘Don’t Be a Dickens at Christmas.’
with much else that lathers up “The Crown”
into the soap opera it wants to be.
There may not be many similarities between the worlds of “The Crown” and “Family
Guy.” One is a venerable cartoon. The other
airs Sunday nights on Fox. But the politics of
gender inform both. The way sex is treated on
“Family Guy” seems guaranteed to extinguish
the ardor of all but the most infantile. “The
Crown,” on the other hand, attains genuine
Once on This Island
Circle in the Square Theatre, 235 W.
50th St., $59.50-$169.50,
800-447-7400.
sexiness without sex. Margaret smolders, as
does Elizabeth, at least on occasion: Beckoning Philip back to bed one morning, the tousled queen becomes a flesh-and-blood woman,
rather than the ornamental thing many
around her would like her to be.
What’s disturbing, perhaps on purpose, is
the paradoxical element in Mr. Morgan’s gender dynamics: Unlike Lois Griffin, the women
of “The Crown” long for strong men; weakness repels them. At the same time, they require acquiescence. Margaret, whose story
dominates episode 4 of the new season, is fascinated by Armstrong-Jones because he regards her dismissively. Elizabeth simply
wishes she had a husband strong enough to
accept what he himself describes as a life with
“no room for mistakes, no room for scandal,
no room for humanity.” The tragedy of “Family Guy” is that it makes us laugh too much.
The tragedy of “The Crown” is that its central
characters might have been very decent people, if their instincts hadn’t been smothered
by accidents of birth.
The Crown
Friday, Netflix
Family Guy
Sunday, 9:30 p.m., Fox
Today
Lo W
27 sn
31 r
68 c
56 c
51 s
75 c
38 s
54 t
30 pc
37 c
78 sh
52 pc
39 pc
36 s
21 sf
70 pc
29 sh
71 r
35 pc
44 t
76 s
27 s
33 s
76 pc
65 t
57 r
38 r
26 pc
31 pc
30 sh
27 r
Tomorrow
Hi Lo W
35 28 sh
35 22 sh
75 59 r
66 59 pc
61 54 pc
90 76 c
59 42 s
79 56 sh
40 31 pc
52 41 pc
90 77 pc
72 53 c
63 36 pc
50 25 s
33 29 c
88 73 pc
39 34 pc
82 72 pc
64 35 s
52 33 sh
86 74 s
40 34 c
48 36 c
82 76 t
76 63 pc
65 59 r
50 39 s
34 18 sn
48 37 pc
36 30 c
33 24 sf
PUZZLE
CONTEST
72 General delivery?
73 Homer’s neighbor
14
15
16
74 December visitor
75 Dmitri’s denials
17
18
19
33 Word between
Down
20
21
22
“once” and
1 Abscam org.
“twice”
2 Pitchers try to
23 24
25
26
27 28
37 Business end of
keep it low
29
30
31
32 33
34
a hornet
3 Northernmost
province of South 40 “___ con Dios!”
35
36
37
38
41 JPEG alternative
Africa
39 40
41
4 “Too soon of ___ 42 Another creature
named with a
were bereft”:
42 43 44
45
46 47 48 49
numerical prefix
Wilde
50
51
52
53
5 Maker of Phaser 43 Fell behind
schedule
printers
54
55
56
57
58
44 Paid a premium
6 Decide
for
59
60 61 62
63
64
7 Tibia’s spot
8 Holder of scoops 47 Served with ice
65
66
67
68 69
cream
9 Flying harpist
70
71
72
10 “Michael Collins” 48 Singapore sling
ingredient
actor
73
74
75
49 When you’ll be
11 Creature with
there, briefly
eight arms
51 Bee follower
12 Title setting
CHANGES WERE MADE | By Matt Gaffney
55 ___ Loa
for an Agatha
The answer to
22 Zilch
52 Glimpsed
Christie mystery 57 Has way too
this week’s contest
23 2016 Olympics
53 Narrow opening
much of
13 Feature of
crossword is a
city
54 Jeans line
whistle or
61 “So true!”
common
25 Sixteen, at times 56 Partners in
mortgage
62 Border
interjection.
27 Add to an email
Health, e.g.
18 Party host, e.g.
64 “There wasn’t ___
chain
58 See 74-Across
Across
22 Tacit approval
eye in the house!”
29 Ball callers
59 A crossword
1 One half of TV’s
23 Massage
66 Words of
31 Film lovers’ site,
editor has to be
“Odd Couple”...
24 Letters before a
rejection
for short
very careful when
6 Hollywood
viewpoint
67 Govt. arm with a
34 No minor
changing one—
statuette
26 Pictures
flower logo
unlike this
35 Part 2 of the quip
11 NBA extras
28 Words sworn by 68 It hangs on a
puzzle’
s
editor,
36
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of
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14 Rainbow ___
30 Enjoy
hoop
who was careless
Way”
(cartoon girl)
Breckenridge
69 Workplaces for
four
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38 Prepared
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32 Lorna ___ cookies
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39 Part 3 of the quip 60 Towing org.
16 Letter after phi
63
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in
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42
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17 Part 1 of a quip
Previous Puzzle’s Solution
wax
by Steven Wright 45 “Isn’t that true
H AWK E WE S T
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65 Propel a shell
about me?”
19 ___ Aviv
B I R D I E F L A T
A S I S
66 Part 5 of the quip
L E E S
M E I R
U N I T E
46 Call over the
20 Office drudge
A S H
B U R S T I N G R A Y
70 Hwy.
loudspeaker
21 Originally with
A B Y S S
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the last name of 50 Politico Pelosi
71 Surpass
1
2
3
4
5
6
7
8
9
10
11
12
13
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, Dec. 10. A solver selected at random
will win a WSJ mug. Last week’s winner: Verve, Ithaca, NY. Complete
contest rules at WSJ.com/Puzzles. (No purchase necessary. Void where
prohibited. U.S. residents 18 and over only.)
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
32 23 c
32 28 c
Atlanta
39 30 c
46 26 s
Austin
54 29 s
65 29 s
Baltimore
44 26 c
39 26 sn
Boise
35 19 s
36 22 c
Boston
41 31 pc 39 28 sn
Burlington
37 24 pc 37 25 pc
Charlotte
43 32 c
47 25 pc
Chicago
37 27 pc 31 17 sf
Cleveland
35 24 s
36 20 sn
Dallas
54 34 s
61 33 s
Denver
57 31 pc 60 28 s
Detroit
35 25 pc 36 17 sn
Honolulu
82 67 pc 84 68 pc
Houston
50 30 pc 62 34 s
Indianapolis
36 24 s
35 17 sn
Kansas City
42 26 pc 40 25 s
Las Vegas
63 41 s
64 42 s
Little Rock
45 26 pc 53 23 s
Los Angeles
76 55 pc 79 55 pc
Miami
86 73 pc 77 49 r
Milwaukee
36 25 c
31 16 sf
Minneapolis
29 15 sn 25 17 pc
Nashville
42 24 pc 45 21 c
New Orleans
43 33 r
54 40 s
New York City
42 33 pc 37 31 sn
Oklahoma City
52 27 s
54 25 s
Miami
40s
60s
dersen’s intriguing complications.
We know little of Daniel’s character other than that there is little
to like. His family mutters racist
comments at Ti Moune and kicks
sand in her face. This love involves no mutual recognition or
even tragic misunderstanding.
Why then do we tell this
story? Maybe because it makes
us feel morally sensitive without
the labor of being so. It seems to
stand against racism, with a
strong woman ready to prove her
love. We relish, as the song says,
“the anger and the sorrow.”
But Ti Moune is strong only
because she doesn’t mind being a
victim. Little about this love is
admirable, and its self-sacrifice is
unconvincing. As is, she is blind,
the gods are cruel, the wealthy
are racist, which is how things
apparently remain. The story,
though, insists it is something
different, as if it were wisely advocating brotherhood and love,
which may be one reason why it
dabbles in sentimentality and has
been—in its original and its revival—so broadly acclaimed.
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.
d
t
Edmonton
Continued from page A12
Miller); that girl grows into Ti
Moune (Hailey Kilgore, in a finegrained star debut). A wealthy
young denizen of the island, Daniel (Isaac Powell), associated with
the privileged, mixed-race heirs to
the colonial French, wrecks his car
on the wrong side of the tracks
and is nursed by Ti Moune. She
falls hopelessly in love with the
boy, who remains unconscious,
saving him by promising Papa Ge
that she will offer her life in place
of his. Alas, Daniel knows nothing
of this. He is brought back to his
family behind locked iron gates. Ti
Moune recklessly leaves home to
seek him, but he does not recall
her. Still, she becomes his lover
and they fantasize about their future together. Thanks to Papa Ge’s
mischief and Daniel’s venality,
things don’t work as planned.
If this is myth, it is weak stuff,
its power and mystery insisted
upon but not felt. If it means to
offer a moral lesson, it is even
weaker. Supposedly based on
Hans Christian Andersen’s “Little
Mermaid,” this imitation breaks
away from its model before An-
FOX
TELEVISION
Weather
THEATER
co Fo
m rp
m e
er rs
ci on
al a
us l,
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on
‘QUEST,” a debut documentary by
Jonathan Olshefski, plays out
across almost a decade in North
Philadelphia, or “beautiful North
Central Philadelphia,” as a local
AM radio host calls it. Those of us
with an outsider’s eye may have to
look closely for the beauty of this
poor African-American neighborhood. Yet it’s there in plain sight:
kids playing joyously on the sidewalks, neighbors tending a patch
of community garden, a guy walking down the middle of a street
tossing rolled-up coupon circulars
onto front porches with the casual
accuracy of a hoop star. That
guy—that thoughtful, eloquent,
loving man, as it turns out—is
Christopher Rainey, aka Quest, a
pillar of the community who, with
his wife and family, occupies the
vital center of this beautiful film.
Because Mr. Olshefski spent so
Lea Salonga, Emerson Davis, Alex Newell, Quentin Earl Darrington and
Merle Dandridge.
ly
.
JONATHAN OLSHEFSKI
dio for the benefit of aspiring hiphop artists in the neighborhood;
he’s a combination recording engineer, guidance counselor and surrogate father to young men who,
as he puts it, “need someone to
talk to.” His wife, Christine’a, aka
Ma Quest, works at a women’s
shelter and is devoted to their
daughter, PJ, a sweet and studious
teen who wants to be a DJ, and to
her adult son, William, who, struggling with brain cancer, has gotten
a tattoo in the form of a biohazard
symbol because he feels like “infectious waste.”
As for the nature of the event, it
is terrible, but, as the Rainey family and their friends say with anguish and philosophy, it could have
been worse. If that doesn’t sound
like much solace, it isn’t, and it is;
life will go on, which is more than
can be said when some tragedies
strike poor families. The randomness is what’s so stunning; one moment life is flowing placidly, then
its course is cruelly changed.
That’s not all “Quest” reveals
about how the Raineys and people
like them make it through their
days. They get no help from politicians, whether local or national.
Shortly after the film begins, Barack Obama comes into office.
Shortly before the film ends, Donald Trump is in full campaign cry
on TV. Yet nothing much has
changed in the neighborhood, and
no changes are expected. The
Raineys remain hopeful, though,
and their hope gets an occasional
boost from promising events: PJ’s
proud graduation from high
school, William’s surprising remission from cancer. If things keep
going his way, he may want to get
rid of that tattoo.
JOAN MARCUS
Beauty in Plain Sight
B I R T H
MA S S E
D
B U R B A
I T A L Y
T I N E
E C O N
S A N D
I
N
O
N
N
E
C
K
W
B E
I A
D R
G S
T
C
L O
A I
R N
G O
O P
T O C O
V E N
R E D O
A N
A
N
I V
I E C A
P O I
I N L
M E
T S
L
A
P
S
E
I
N
S
E
T
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A14 | Friday, December 8, 2017
SPORTS
COLLEGE FOOTBALL | By Jason Gay
BY REBECCA DAVIS O’BRIEN
THE FORMER doctor for the U.S.
women’s gymnastics team was
sentenced Thursday to 60 years in
federal prison on child pornography counts, an effective life term
that prosecutors requested to reflect admitted decades of sexual
abuse against dozens of young
girls, ranging from family friends
to decorated Olympic athletes.
Larry Nassar, 54 years old,
pleaded guilty in July to two
child-pornography counts and one
count of obstruction of justice.
Nassar has also pleaded guilty to
state charges of criminal sexual
abuse in Michigan, where he lives,
and will be sentenced on those
counts at a later date.
Nassar’s lawyers, who had
asked for leniency in sentencing,
declined to comment. In a court
filing last week, they said Nassar
The former U.S.
gymnastics doctor was
sentenced on child
pornography charges.
They’ll be thrilled. They can field
punts and roll around in the grass
until they’re 40.
I’m not going to demand my own
private plane, either. I mean: I’ll use
the school’s private plane, but I will
only use it for recruiting, media appearances, booster visits, speeches,
camps and occasional friends and
family trips to Vegas, Hawaii, the
Maldives, Italy, France, the Canary
Islands, Antarctica, Wimbledon, the
Masters, the Running of the Bulls,
solar eclipses and maybe to go to
my mom’s for Christmas.
Oh, can you throw in a job for
my mom, too? How’s $600,000
sound?
Actually mom wants $675,000,
plus a nice Benz. Let’s make this
happen.
I know this may sound like a lot
of spending, but this is what matters
now. Football is the only way for a
modern university to be truly great.
Yeah, yeah, yeah—there are admissions standards, classes, research
and maybe even Nobel Prizes and
stuff, but those are pretty boring.
You know what’s not boring?
Hosting “College GameDay.” You
know what’s better than a Nobel
Prize? Making the College Football
playoff semifinal. Do they show
the Nobel Prizes on FS1? I didn’t
think so.
Still, I really do want to make
this work for your school. I’m not
going to shake you down for every
last penny. Let’s talk about my bonuses. Do you read USA Today’s
Steve Berkowitz? You really should.
He keeps a running tab of insane
college coach bonuses, and he’d recognize I’m being reasonable here.
I only want bonuses for the
following:
National Championship: $1 million.
Playoff semifinal: $500,000.
Winning the conference: $250,000.
Beating local community college
in practice game: $150,000.
Preparing orange slices: $100,000.
Getting tweeted at by Jim
Harbaugh: $3 million.
Nice haircut: $50,000
Graduating athletes: $1.50
If you want me to wear a specific brand of shoe, or a host a radio show where guys named Duck
get to yell at me, that’s going to
cost you another half million.
Again, this is less than the going
rate. I’m basically a steal.
Should you decide to terminate
me prematurely, naturally I’ll be
due the remainder of my contract.
In addition to giving Jimbo all that
coin, Texas A&M is paying its excoach, Kevin Sumlin, the remaining $10.4 million it owes him. That
sounds great to me.
If I get a contract offer from another school, you are obligated to
match it, even if I have no intention of taking the job. Suckers.
If I do wind up leaving, the
school that’s poaching me will give
you a “buyout,” which you can use
to overpay some other idiot.
And I promise to stay on the
job…for at least one full season.
Sound good? I’ll start Monday.
Nah: let’s make it Tuesday.
FIGURE SKATING
OLYMPICS MIGHT LOOK RADICALLY DIFFERENT
BY LOUISE RADNOFSKY
Evgenia Medvedeva
has won back-to-back
world championships.
FIGURE SKATING, the marquee
event of the Winter Olympics, is
going to look very different in 2018
if Russian athletes stay away from
Pyeongchang following the International Olympic Committee’s ban
of the country’s athletes over the
country’s manipulation of doping
results.
Some Russian skaters may be invited to compete under a neutral
banner under terms the IOC laid out
this week, and Russian President
Vladimir Putin said Wednesday it is
up to athletes to decide. But some
top skaters—chiefly reigning world
champion Evgenia Medvedeva—are
threatening to opt out regardless.
If they do, it will deliver a sharp
blow to a once all-powerful sports
dynasty. And the banner ladies
competition in Pyeongchang would
become a free-for-all among Canadian, American and Japanese skaters, but no one capable of commanding a definitive victory.
The Soviet Union topped the figure skating medal count at every
Winter Games from 1968 through
1988. The streak broke in 1992 in
the wake of the Soviet Union’s
breakup. Russia’s dominance resumed in 1994 and continued at
nearly every Olympics through
2014.
Russia will be unable to defend
the first skating gold medal it took
triumphantly in the inaugural team
event in Sochi, which pitted national
figure skating programs against
each other by combining the scores
of male and female singles skaters,
pairs and ice dance couples.
Meanwhile, a conveyor belt of
female Russian skaters that has
established itself as a worlddominant force in figure-skating
is hitting an insurmountable
ATSUSHI TOMURA/ISU/GETTY IMAGES
no
“deeply regrets the pain that he
has caused the community, as
well as his family and friends.”
McKayla Maroney, an Olympic
gold-medal winning gymnast who
was among Nassar’s victims, attended Thursday’s sentencing in
Grand Rapids, Mich. In a statement
submitted to the court before the
hearing, Maroney said Nassar “deserves to spend the rest of his life
in prison.”
As part of Nassar’s guilty plea,
prosecutors agreed not to bring
charges against him in connection
with four of the children he
abused, including Maroney, who
was identified anonymously in
court filings.
Maroney’s mother, Erin Maroney, who was also in court, said
in a statement that the abuse and
its aftermath “shattered” her
daughter. “She has transformed
from a bubbly, positive, world class
athlete into a young adult who was
deeply depressed, at times suicidal,” Erin Maroney wrote.
Erin Maroney and the gymnast’s father have sued USA
Gymnastics and the U.S. Olympic
Committee in California state
court, under pseudonyms, seeking damages stemming from
their daughter’s abuse.
Allegations against Nassar first
became public in September 2016,
a year after USA Gymnastics
forced him out amid an internal
investigation into athlete concerns
about his treatment. In November
2016, the Michigan attorney general charged him with first-degree
state sexual abuse counts.
The following month, federal
prosecutors charged him with child
pornography counts, later adding
the obstruction charge to reflect
Nassar’s efforts to destroy and
conceal evidence. As outlined in
court filings, law-enforcement recovered his hard drives only because the trash truck was late the
day a search warrant was executed
on his home.
In their sentencing memorandum filed last week, prosecutors
said that Nassar had more than
37,000 images of child pornography, depicting children as young as
infants and videos of prepubescent
children being raped by adult
males, among other sex acts.
Maroney, now 21 and retired
from the sport, wrote in a Twitter
post in October that Nassar had
abused her for years, starting
when she was 13, under the pretense of providing treatment, including when she was competing
at the 2012 Games. Two of her
Olympics teammates, Aly Raisman
and Gabby Douglas, have also
come forward with allegations
against Nassar.
Jimbo Fisher speaks during a news
conference at Texas A&M on Dec. 4.
roadblock in the ban.
Eighteen-year-old Medvedeva,
the back-to-back world champion,
said Tuesday that she did not
want to compete for herself alone
in Pyeongchang.
The decision on whether to participate is likely to be heavily influenced by the Russian skating
federation, which was set to finalize its Olympic options around the
time of the Russian national championships in late December. That’s
when Medvedeva is expected to recover from an ankle injury, and
when her prowess would have
been compared to those of half a
dozen different skaters who could
also command Olympic entries.
Medvedeva is most obviously
replaceable by two other Russian
teenagers due to compete this
weekend in the Grand Prix Final in
Nagoya, Japan, the major annual
international testing ground to establish the top six skaters in the
world. Alina Zagitova, a 15-yearold, is in her first season competing at the senior level; Maria
Sotskova is a 17-year-old who is
also relatively new to senior ranks.
“Of course we have Medvedeva,
of course we have Zagitova, many,
many right now…beautiful girls,
strong, powerful, consistent,” said
Evgeni Plushenko, the four-time
Olympic medalist whose final
medal came at the 2014 team
event in Sochi, now a coach to another talented Russian teenager,
Serafima Sakhanovich.
In the last four skating seasons,
10 Russian women have won almost 60% of the major international medals. Among them: the
2014 Olympic singles title, and the
world championship title, the
Grand Prix final title, and the Junior Grand Prix final title for every
single year since 2015.
“It’s like fabric, they’re always
coming,” said Alena Leonova, the
2012 world silver medalist who at
27 years old is still trying to compete alongside the teenagers.
Russian prowess had actually
dipped in recent years in ice dance
and men’s singles skating, though
competitors in both disciplines
were performing at a level that
would have put the squad in a
strong position to repeat the gold
medal in the team event.
Canada, the only squad with the
ability to rival them for gold in the
team event, is likely to benefit
most directly from the Russia’s absence in Pyeongchang.
The U.S., the other squad with a
strong claim to the podium, will
likely move up, and the bronze
medal is suddenly open to the
more uneven squads from China
and Japan.
In the ladies event, Canadians
Kaetlyn Osmond and Gabrielle Daleman, Japan’s Satoko Miyahara or a
compatriot who secures the country’s second Olympic berth, Italian
veteran Carolina Kostner or perhaps
Americans Ashley Wagner or Karen
Chen could now add a gold medal
to their podium aspirations—but
none would have the clear claim.
In pairs skating, Russia’s Evgenia
Tarasova and Vladimir Morozov and
Ksenia Stolbova and Fedor Klimov
are seen as medal contenders,
though the Chinese pair of Sui
Wenjing and Han Cong are the gold
medal favorites.
DAVE MCDERMAND/COLLEGE STATION EAGLE/ASSOCIATED PRESS
NASSAR GETS
60-YEAR
SENTENCE
ly
.
GYMNASTICS
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Larry Nassar in court on Nov. 22.
You must know that
I love my Journal job—
what’s not to love; this
distinguished newspaper lets me scratch out
950 words of drivel a
couple of times a week about obscure European cyclists and Wisconsin football—but I have to say,
after careful consideration with
my family, I’m willing to give it up.
I’m willing to give it up to be a
college football coach.
I say this every few years, but
this time, I mean it for real. I’m
ready.
It’s time to make the move. I’m
sure you’re thinking about making
the move, too. College football coach
is now one of the most highly compensated jobs in America—right up
there with CEO and heart surgeon
and weirdo who opens presents for
dogs on YouTube.
Surely you saw the eye-popping
contract that Texas A&M just gave
to former Florida State football
coach Jimbo Fisher: $75 million over
10 years. That’s the richest deal ever
awarded to a college football coach
in history. It’s more total money
than even handsome Nick Saban
gets to be the Emperor of Alabama.
I also think it may make Fisher
the best-paid Jimbo on Earth.
So I’m putting all the remaining
universities and colleges on notice:
I’ll coach your football team for
just half of what Jimbo’s getting.
I’m a bargain, I really am. I’m
leaving $37.5 million on the table.
Think of what you can do with the
rest of that money! You could add
hot tubs and panic rooms to the corporate luxury boxes. You could build
a practice facility with a butler, an
IMAX theater and a wine cellar.
Or: you could even take that
$37.5 million and give it to some
of your underpaid professors and
teaching assistants on campus.
Ha! Just kidding. Nobody cares
about those underpaid professors
and teaching assistants. Losers!
When have you ever seen them at
the ESPY awards?
Not only am I asking for just
half of what Jimbo’s getting, but I
won’t ask you to give fat deals to a
bunch of my assistants, either.
That’s something today’s college
coaches do—they bring along a flotilla of coaches when they move.
And those dudes cost bank, too.
There are growing number of assistant football coaches in America
clearing seven figures now.
But I don’t need a bunch of assistants. I just want you to hire my
children. I’ve got a 4-year-old and
a 2-year-old, both deadbeats. Give
them $400,000 each. That’s it.
n-
JEFF KOWALSKY/AFP/GETTY IMAGES
Please Hire Me to Coach!
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Friday, December 8, 2017 | A15
THE WALL STREET JOURNAL.
OPINION
And Mr. Mueller—who is
well aware the House is
probing all this, and considered the Strzok texts relevant enough to earn the
agent a demotion—nonetheless did not inform Congress
about the matter. Why? Perhaps Mr. Mueller feels he’s
above being bothered with
any other investigation. Or
perhaps his team is covering
for the FBI and the Justice
Department.
When Deputy Attorney
General Rod Rosenstein appointed Mr. Mueller, he
stressed that he wanted a
probe with “independence
from the normal chain of command.” Yet the Mueller team
is made up of the same commanders who were previously
running the Trump show at
the Justice Department and
the FBI, and hardly distant
from their old office.
Andrew Weissmann, Mr.
Mueller’s deputy, is chief of
the Justice Department’s
criminal fraud section and
was once FBI general counsel.
Until Mr. Strzok’s demotion,
he was a top FBI counterintelligence officer, lead on the
Trump probe. Michael Dreeben is a deputy solicitor general. Elizabeth Prelogar, Brandon Van Grack, Kyle Freeny,
Adam Jed, Andrew Goldstein—every one is a highly
placed, influential lawyer on
loan from the Justice Department. Lisa Page—Mr. Strzok’s
mistress, with whom he exchanged those texts—was on
loan from the FBI general
counsel’s office.
Does anyone think this
crowd intends to investigate
Justice Department or FBI
misdeeds? To put it another
way, does anyone think they
intend to investigate themselves? Or that they’d investigate their longtime colleagues—Andrew McCabe, or
Mr. Ohr or Mr. Strzok? Or
could we instead just acknowledge the Mueller team
has enormous personal and
institutional interests in
justifying the actions their
agencies took in 2016—and
therefore in stonewalling
Congress?
The Strzok texts raise the
additional question of whether
those interests extend to
taking down the president.
Mr. Strzok was ejected from
Mueller, the Justice
Department and the
FBI aren’t helping the
lawmakers’ probe.
Team Mueller for exhibiting
anti-Trump, pro-Clinton behavior. By that standard, one
has to wonder how Mr. Mueller has any attorneys left.
Judicial Watch this week
released an email in which
Mr. Weissmann gushed about
how “proud and in awe” he
was of former acting Attorney General Sally Yates for
staging a mutiny against the
Trump travel ban. Of 15 publicly identified Mueller lawyers, nine are Democratic
donors—including several
who gave money to Mrs.
Clinton’s 2016 campaign.
Jeannie Rhee defended the
Clinton Foundation against
racketeering charges, and
represented Mrs. Clinton
personally in the question of
her emails. Aaron Zebley
represented Justin Cooper,
the Clinton aide who helped
manage her server. Mr. Goldstein worked for Preet Bharara, whom Mr. Trump fired
and who is now a vigorous
Trump critic. The question
isn’t whether these people
are legally allowed (under
the Hatch Act) to investigate
Mr. Trump—as the left keeps
insisting. The question is
whether a team of declared
Democrats is capable of impartially investigating a Republican president.
Some want Attorney General Jeff Sessions to clean
house, although this would
require firing a huge number
of career Justice Department
lawyers. Some want Mr.
Trump to fire Mr. Mueller—
which would be counterproductive. Some have called
for a special counsel to investigate the special counsel, but that way lies infinite
regress.
There is a better, more
transparent way. Mr. Sessions (or maybe even Mr.
Trump) is within rights to
create a short-term position
for an official whose only job
is to ensure Justice Department and FBI compliance
with congressional oversight.
This person needs to be a
straight shooter and versed
in law enforcement, but with
no history at or substantial
ties to the Justice Department or FBI.
It would be a first, but we
are in an era of firsts. Congress is the only body with
an interest and ability to get
the full story of 2016 to the
public, thereby ending this
drama quickly. But that requires putting an end to the
obstruction.
Write to kim@wsj.com.
India’s Imaginary ‘Love Jihad’
HOUSES OF
New Delhi protect herself—the court or- conversion to Islam. Promi- Anyone seeking to meet HadWORSHIP
This is the dered Hadiya, then 24, to nent members of India’s rul- iya, including her husband,
move in with her parents. It
also barred her husband from
contacting her.
The court described Hadiya’s professed interest in Islam as “out of the ordinary,”
since “the normal youth is indifferent towards religion and
religious studies.” The judges
observed that she was “not a
very bright student” and concluded that her conversion to
Islam after “merely attending
a [religious] course of two
months’ duration” was not
credible. The court added—
with no supporting evidence—
that “she has no idea as to
what she wants in life.” In
other words, she was too stupid to convert freely.
Hadiya’s husband appealed
the annulment of the marriage
to India’s Supreme Court,
which agreed to hear the case.
Yet at the same time, the court
ordered the country’s antiterrorist agency to investigate the
husband’s political activities.
The government contends,
without offering incriminating
evidence, that he is a Muslim
radical. But the agency’s involvement—and its incendiary
assertion that Hadiya’s is a
case of “psychological kidnapping”—has helped to feed a
growing hysteria about religious conversions.
Hindu fundamentalists have
alleged that Muslim men are
waging a “love jihad,” in
which they lure gullible Hindu
women into marriage and
no
story of Hadiya, currently
the most famous woman
in India. Like any person of
modest profile rocketed into
national headlines, she’d
rather be leading an anonymous life. But her parents—
and the Supreme Court of India—will not let her.
Hadiya, a medical student,
was born 25 years ago into a
Hindu family in the southern
state of Kerala. In 2015 she
converted to Islam, and last
year she married a Muslim
man. In the process, she
changed her Hindu given name
from Akhila Ashokan to the
adoptive Muslim Hadiya.
Her parents, appalled by the
decision, urged the courts to
annul her marriage in December 2016. They contended that
she had converted to Islam under duress. Worse, they alleged
that their daughter’s husband,
Shafin Jahan, was involved in
terrorism and intended to traffic her to Syria.
In a judgment that was
startling in its paternalism
and sexism, the Kerala High
Court annulled Hadiya’s marriage, holding that she could
not possibly have converted
and married of her own free
will. There had to have been
brainwashing and “indoctrination.” Exercising its parens
patriae jurisdiction—which
gives it power to safeguard a
citizen deemed unable to
n-
By Tunku
Varadarajan
ing Bharatiya Janata Party—
which is pro-Hindu and
nationalist—use the phrase
freely, as they rage against an
imagined demographic terrorism being waged to increase
Muslim numbers in Hindu-majority India.
The Supreme Court of India
did Hadiya no favors last
week. The bench had to be
shamed by her lawyers into
even granting her the chance
Judges break up
the marriage of a
Hindu woman who
converted to Islam.
now needs her principal’s permission.
The Hadiya case has drawn
attention to two ugly problems
in Indian society. The first is
the unabashed infantilization
of women by its official institutions. The Kerala High
Court, in its judgment ordering Hadiya to return to her
parents, wrote: “[She] is the
only child of her parents.
There are no other persons in
this world who would consider
the welfare and well-being of
their daughter to be of paramount importance than her
parents.” They wrote this referring to an adult woman.
The second problem is the
profound Hindu paranoia
about religious conversion.
For many centuries before the
arrival of the British, Hindus
of the lower castes converted
to Islam in massive numbers
to escape an oppressive religious hierarchy. Under the
British, and even after independence, many hundreds of
thousands converted to Christianity for the same reasons.
Hindu revivalists today see an
opportunity for a great and
glorious reversal of that demographic loss. This has made
them aggressively defensive of
their faith, and of “their” people. Hadiya is but a pawn in
their game.
to speak in court, and then
proceeded to ignore her assertions. “I want to go with my
husband, nobody forced me to
convert,” she said in open
court. For their part, the
judges spoke of the need to
“deprogram” her.
The court, which had ruled
only three months ago that
privacy was the fundamental
right of every Indian citizen,
proceeded to ignore its own
landmark judgment. It effectively held that Hadiya has no
right to privacy—or autonomy.
Instead it has offered its own
brand of paternalism, transferring Hadiya’s guardianship
Mr. Varadarajan is a fellow
from her father to the princi- at Stanford University’s Hoopal of her medical college. ver Institution.
Tear Down the Littlest Trade Barrier
By Christine McDaniel
W
ith trade talks regarding the World Trade
Organization
and
North American Free Trade
Agreement under way, the
Trump administration can
help American exporters, especially small businesses, by urging other countries to relax a
barrier on small trades.
The de minimis threshold
is a valuation ceiling governments set on imported
goods. Shipments costing
over that amount are subject
to duties, taxes and clearance
procedures. The U.S. has one
of the highest thresholds in
the world, at $800, which is
beneficial to American consumers and other countries
that want to export goods to
the U.S.
But the duty-free thresholds vary widely. China’s is as
low as $8, Canada’s around
$20, and Mexico’s $300. A U.S.
Another Reason
To Rejoice Greatly
Messiah
By Jonathan Keates
(Basic, 165 pages, $25)
I
t is a December evening, and you’re trapped in a school
auditorium for the holiday concert. The long-suffering
music director raises a baton, the violins screech horribly
and some petrified high-school tenor, all puberty and nerves,
squeaks out the first few notes of “Comfort Ye,” the opening
aria of Handel’s “Messiah.” Your soul convulses as you realize
just how long a night lies ahead. Or you’ve taken your seat at
an expensive symphonic concert of the same work. Faced by
an enormous and prestigious orchestra and chorus, you realize
in the first bars of the opening sinfonia that the conductor has
established a glacial pace, determined to give each 16th note
its wooden due. This is “Messiah” as cliché and “Messiah” as
chore: a great work trotted out annually, drained of life and
very nearly ruined.
As far back as 1891, the Irish playwright George Bernard
Shaw railed against “the custom of singing Handel as if he
meant nothing.” In Shaw’s day the fashion was to mount epic
“Messiah” festivals in celebration of England itself, with performances featuring as many as 3,000 singers and 460 orchestra members. The stage and the spirit groaned under
such excess. Additional orchestrations were added to the
score, and spectacle drowned
out the music. Someone,
Shaw said, should put
together “a thoroughly rehearsed and exhaustively
studied performance . . . with a
chorus of twenty capable artists. Most of us would be glad
to hear the work seriously
performed before we die.”
Shaw may or may not have
gotten his wish, but, as Jonathan
Keates observes, greater focus
and clarity in Handel interpretation did emerge in the mid-20th
century. Scholarly conductors like
Christopher Hogwood and John Eliot
Gardiner stripped away the cultural baggage of
“Messiah” like curators restoring a painting. Their brisk
tempos meant engaging elite musicians who could keep up
during the piece’s challenging melisma runs. (Mr. Gardiner’s
“Messiah” is almost 20 minutes shorter than some
interpretations on offer.) The music became fast and light
and breathed once more. Listening to such a performance
can be a profound experience that reveals “Messiah” not as a
feat of obligation but as a work of art.
Mr. Keates quotes Shaw and deplores “big-band Handel”
in his delightful “Messiah: The Composition and Afterlife of
Handel’s Masterpiece.” This richly illustrated book is like a
lively performance of the piece itself. At 130 pages, it is not a
word too long and manages to capture the essence of
Handel’s magic. Mr. Keates celebrates the “emotional range”
and “incomparable universality” of “Messiah” and writes of
“the directness of its engagement with our longing, our
fears, our sorrows, our ecstasy and exaltation.”
Handel composed “Messiah” at a sprint in 1741 in London.
He then took his manuscript to Dublin in a sojourn that was
part sabbatical and part theatrical preview. The yet-untitled
score needed work, and Handel wanted to test it out on Irish
audiences before facing the discerning patrons of Covent
Garden. In one of many such passages, Mr. Keates finds a
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The
media
echo chamber
spent
the
week speculating about
whether SpePOTOMAC cial Counsel
Robert MuelWATCH
ler can or will
By Kimberley
nab President
A. Strassel
Trump on obstruction-ofjustice charges. All the while
it continues to ignore Washington’s most obvious obstruction—the coordinated
effort to thwart congressional
probes of the role law enforcement played in the 2016
election.
The news that senior FBI
agent Peter Strzok exchanged
anti-Trump, pro-Hillary text
messages with another FBI official matters—though we’ve
yet to see the content. The
bigger scandal is that the Justice Department, the Federal
Bureau of Investigation and
Mr. Mueller have known about
those texts for months and
deliberately kept their existence from Congress. The
House Intelligence Committee
sent document subpoenas and
demanded an interview with
Mr. Strzok. The Justice Department dodged, and then
leaked.
The department also withheld from Congress that another top official, Associate
Deputy Attorney General
Bruce Ohr, was in contact
with ex-spook Christopher
Steele and the opposition-research firm Fusion GPS. It has
refused to say what role the
Steele dossier—Clinton-commissioned oppo research—
played in its Trump investigation. It won’t turn over files
about its wiretapping.
BOOKSHELF | By Michael O’Donnell
ly
.
Obstruction of Congress
business selling a new gadget
for $50 would need to pay a
duty on an order from Canada
or China, and the company
faces entirely different taxes,
regulations and trade policies
in each country. To make matters more complicated, some
The U.S. duty-free
threshold is $800.
Canada’s is only $20.
regions, such as the European
Union, have different thresholds for a duty and a valueadded tax.
Higher de minimis thresholds in other countries would
ease the burden and expand
export markets for hundreds
of thousands of U.S. businesses. Commerce Department
data show that 304,223 American companies export, among
which 297,343, or 97.7%, are
classified as small or mediumsize. The tax and regulatory
burden tends to fall more
heavily on smaller businesses
because they lack the resources for compliance.
Today, online platforms and
innovative financial technology enable more companies
than ever to conduct secure
business transactions with foreign markets. One study found
that 95% of sellers on eBay export, compared with less than
5% of all U.S. businesses.
Wider access to international markets enables small
companies to grow and
weather the ups and downs
of the local marketplace. A
wide body of evidence conveys that companies that export, whether large or small,
tend to outlast their nonexporting counterparts, have
higher revenues and growth,
are more productive, and
pay their employees higher
wages.
President Trump’s recent
trip to Asia landed deals
worth a reported $250 billion—a welcome move for
large businesses like General
Motors and Boeing. But barriers still exist for small
businesses. The U.S. National
Trade Estimate Report identifies barriers to digital
trade in 24 of the country’s
largest export markets. Removing these barriers and
encouraging other countries
to raise the duty-free threshold are two places for Mr.
Trump and his trade team to
begin making headway for
small businesses in the
global marketplace.
Ms. McDaniel, a former senior economist with the White
House Council of Economic
Advisers and deputy assistant
Treasury secretary, is a senior research fellow with the
Mercatus Center at George
Mason University.
A great work of music, long drained of life, has
undergone a modern renewal thanks to scholarly
conductors and their clear, brisk performances.
telling anecdote about Handel’s year abroad. At a Dublin
performance, concertmaster Matthew Dubourg lost his way
during a violin cadenza. A contemporary account said that “he
wandered about in different keys a great while, and seemed
indeed a little bewildered and uncertain of his original.” When
he finally found his way back, the composer himself called out
to general delight, “You are welcome home, Mr. Dubourg.”
“Messiah” is an oratorio: a large-scale work for orchestra
and chorus that dramatizes a religious story. Handel himself
had introduced London audiences to the form with works in
the 1730s like “Saul” and “Israel in Egypt.” A newspaper
advertisement for one of his concerts in 1732 tried to head
off audience disappointment: “NB There will be no Action on
the Stage, but the House will be fitted up in a decent Manner
for the Audience.” Mr. Keates explains that Handel’s great
contribution to the oratorio was to expand the role of the
chorus, making it an active participant in the drama.
As a commercial composer in the 1740s and 1750s, Handel
had to do his share of hustling on behalf of “Messiah.” He
was largely responsible for coordinating ticket sales and
selling copies of the score. Mr. Keates describes Handel as
somewhat “calculating and opportunistic” and notes the way
he reworked arias based on available performers. His
treatment of the sacred text as a route to profit caused
tension with his pious librettist Charles Jennens, who
groused about the finished product: “ ’Tis after all, in the
main, a fine Composition, notwithstanding some weak parts,
which he was too idle & too obstinate to retouch.” Mr. Keates
writes that Handel’s own favorite movement was “He trusted
in God,” an intense minor-key fugue.
The greatest of all choral composers, J.S. Bach, looms
over this story. In the book’s only weakness, Mr. Keates
approaches Bach defensively on Handel’s behalf in an
attempt to forestall criticism of his man as the lesser artist.
The two were contemporaries of the baroque, but while the
rich and famous Handel wrote for the paying public, Bach
composed for the church and would find his greatest
renown posthumously. Mr. Keates resists comparisons of
“Messiah” with Bach’s two Passions (St. John and St.
Matthew) or his Mass in B minor. That is just as well, for
Bach’s choral masterworks were more musically audacious,
structurally complex and artistically satisfying. But reasonable minds can differ, and in Mr. Keates Handel has an able
champion. He has dusted off “Messiah” and reminded us of
all it can be.
Mr. O’Donnell is a lawyer in the Chicago area whose writing
appears in the New York Times, the Atlantic and the Nation.
Coming in BOOKS this weekend
Attacking and defending Darwin • The rise and fall of
William Fox • The birth of cyberculture • W.M.
Spackman and the decay of criticism • The editor who
made D.H. Lawrence and Joseph Conrad • & more
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A16 | Friday, December 8, 2017
OPINION
LETTERS TO THE EDITOR
Jerry Brown’s Pension Epiphany
Conyers, the Constitution and Disorderly Acts
A
Merkel’s Not-So-Grand Coalition
n-
ngela Merkel’s leftward drift cost her cen- September that voters want an opposition party
ter-right party seats in September’s Ger- that opposes.
man election, and her center-left coaliOn the policy merits a grand coalition is likely
tion partners fared even worse
to be a bad deal. Some SPD
To duck a new election, leaders think the party can
for having governed with her.
Yet now she proposes to move
the political fallout
she may move further mitigate
even further left at the behest
from cooperation with Mrs.
left on policy.
of that losing partner so she
Merkel by striking a harder
can form another unpopular
bargain than it has in the past,
coalition with them? Go figure.
and Mrs. Merkel might go
Mrs. Merkel has failed to form a government along to keep power.
since September’s murky result in which her
That would mean less tax relief than the €15
center-right Christian Democrats (the CDU and billion ($18 billion) cuts to personal income taxes
Bavarian CSU) lost 65 seats. Her first try at a co- Mrs. Merkel promised before the election, or a
alition, with the free-market Free Democrats further retreat from modest pension reforms
(FDP) and the urban leftist Greens, fell apart that raised the retirement age. The SPD also
when the FDP refused to bend on energy policy could pull Mrs. Merkel away from a more realistic
and migration.
approach to Middle Eastern migration.
Yet Mrs. Merkel is resisting a new election or
The bigger consequences of another grand
a minority government, on the theory that either coalition would be political. Mrs. Merkel, having
would be a post-War novelty in Germany and been punished by voters for her milquetoast cenwould echo a less stable and more frightening trism, would be bowing to the policy wishes of
time in the country’s history. Instead she’s trying a center-left party that now has even less of a
to browbeat the center-left Social Democrats mandate than it did before the election. This will
(SPD) into negotiating another grand coalition be worse than the instability of a minority govafter months of SPD resistance.
ernment or another election because it signals
The SPD has participated in such coalitions that voter dissatisfaction doesn’t matter in Berfor eight of the 12 years that Mrs. Merkel has lin. That, and not a second election, is what crebeen in office and seemed to have concluded af- ates opportunity for political extremists on the
ter winning their lowest post-1949 vote share in left and right.
Al Franken’s Non Sequitur
no
A
Regarding your editorial “The
Conyers Standard” (Dec. 2): Not to
nitpick, but it’s imprecise (and thus
misleading) to say that the Constitution allows Congress to expel a
member for “bad behavior,” meaning the sexual misconduct alleged
against Rep. John Conyers, Sen. Al
Franken or Roy Moore, etc. Rather,
the Constitution gives each house
the power to punish the “disorderly
behavior” of its members, including
expulsion (Article I, Section five).
Historically “disorderly behavior”
has been restricted to conduct that
took place during the member’s
term of office and which related directly to the duties or function of
the office, viz.: bribery, treason, corruption, and during the Civil War,
aiding the enemy.
As despicable as sexual misconduct is, acts predating one’s term of
office or not directly related to the
work of Congress aren’t a good fit
for that intentionally narrow historical framework. Words mean something in our Constitution, and elections count too. We should resist
the temptation to undo either, even
when we feel we have the moral
right.
JOHN DIZZIA
Cranford, N.J.
When Rep. Nancy Pelosi says that
“John Conyers is an icon in our
country,” it is clear that Ms. Pelosi
has yet to learn the difference between an icon and a relic.
PHIL PEPE
Delray Beach, Fla.
Some Inconvenient Truths of Wind and Solar
Your editorial “Alaska Drilling
Dividend” (Dec. 1) questioning the
opposition of advocacy groups to
drilling in the Arctic National Wildlife Refuge doesn’t mention the hypocrisy of major environmental
groups toward wind and solar power
in natural places. Disturbing a very
remote area of Alaska is verboten.
Yet the 52,000 U.S. wind turbines
(the Cuisinarts of the air) grind up
protected and unprotected birds and
bats and produce low-frequency
sounds and light flicker that disturb
wildlife. Turbines and solar farms in
rural or wilderness settings require
intrusive access roads and transmission lines. Yet these are blessed by
the D.C.-based intelligentsia.
Dense mineral energies can be
considered more environmentally
benign than dilute, intermittent renewables. Peter Huber has written
that “the greenest fuels are the ones
that contain the most energy per
pound of material that must be
mined, trucked, pumped, piped, and
burnt.” He notes that “extracting
comparable amounts of energy from
the surface would entail truly monstrous environmental disruption.”
His conclusion: “The greenest
possible strategy is to mine and to
bury, to fly and to tunnel, to search
high and low, where the life mostly
isn’t, and so to leave the edge, the
space in the middle, living and
green.”
ROBERT L . BRADLEY JR.
Founder & CEO
Institute for Energy Research
Houston
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
epublican plans to slash the state-and- state laws in court, is notable. Since Mr. Becerra
local tax deduction are already reaping is up for re-election next year, he may have faced
benefits in high-tax states. Democrats in pressure from unions to deliver a less than vigorthe Northeast say they’re havous defense.
Reality bites as the
ing second thoughts about
“Treating laws as contracts
raising taxes. And lo and becreates
knotty constitutional
state and local tax
hold, California Gov. Jerry
problem,” Mr. Brown’s brief
deduction may vanish. notes, since “policies are ‘inherBrown is arguing that public
pensions aren’t ironclad.
ently subject to revision and reLast month the Governor
peal’ and one Legislature ‘may
intervened in a state Supreme Court case re- not bind future Legislatures.’ Yet finding that a
garding the constitutionality of his modest 2012 law creates a contractual commitment does just
pension reforms. Several unions have challenged that.” What’s more, “even a law substantially imthe reform’s limitations on pension “spiking,” pairing a contract will generally stand if it was
including a provision that prevents workers reasonable and necessary to serve an important
from buying pension credit—known as “air- public purpose,” in which case offering a compartime”—at up to 40% below cost for years they ative advantage is not necessary.
haven’t worked. The perk, which Democrats
“The Union’s attempt to radically expand the
granted unions in 2003, has allowed workers to scope of the vested rights doctrine should be reretire early with handsome pensions.
jected,” he asserts, since such a rule “would inUnions claim that workers are entitled to troduce an inflexible hardening of the tradikeep buying airtime because the U.S. Constitu- tional formula for public employee pension
tion forbids states from impairing contracts. modifications,’ rendering pension systems incaThey also point to a California Supreme Court pable of adapting to changed fiscal or factual
ruling half a century ago holding that pensions circumstances.”
once vested cannot be modified unless workers
Mr. Brown’s argument is particularly noteare given a comparable, offsetting benefit.
worthy because unions in other states have cited
But two state appellate courts have recently the “California Rule” that says pensions can’t be
upheld the reform’s limitations and cast doubt modified under any circumstance unless workon this radical interpretation of contract law. ers are offered a comparable benefit in exThe state’s First District Court of Appeal held change. This would make it difficult to realize
last August that “short of actual abolition, a rad- substantial savings from reform.
ical reduction of benefits, or a fiscally unjustifiRepublicans in high-tax states say that abolable increase in employee contributions,” public ishing the state-and-local tax deduction is unfair
worker pensions may be modified.
since lawmakers are legally barred from reducAnother panel ruled last December that ing government pensions and thus have no
“while plaintiffs may believe they have been dis- choice but to raise taxes to pay for them. But
advantaged by these amendments, the [2012] nearly every state court faced with the issue has
law is quite clear that they are entitled only to upheld modifications.
a ‘reasonable’ pension, not one providing fixed
The real problem is political, not legal. Demoor definite benefits immune from modification.” crats don’t want to renege on promises to their
In other words, benefits for current workers union friends and financiers. Mr. Brown isn’t
may be trimmed.
running for re-election, so he may feel liberated.
Gov. Brown barged into the debate with a 56- But perhaps other Democrats will be more motipage brief. His usurpation of the state Attorney vated if their wealthy denizens raise a ruckus
General Xavier Becerra, whose job is to defend and leave their states.
ly
.
R
REVIEW & OUTLOOK
l Franken announced his resignation
“Serving in the United States Senate has been
from the Senate on Thursday, and after the great honor of my life. I know in my heart
listening to his exit address our question that nothing I have done as a Senator—nothis why? The Minnesota lefting—has brought dishonor on
The Minnesota Senator this institution. And I am conhander said he did nothing
wrong, claimed the Ethics
fident that the Ethics Commitsays he’s innocent
Committee would vindicate
tee would agree.
but resigns anyway.
him, and assailed his oppo“Nevertheless, today I am
nents as far worse than he is.
announcing that, in the coming
So why not stick around and
weeks, I will be resigning as a
clear his name?
member of the United States Senate.”
Mr. Franken started off by saying how “exNevertheless? Talk about a political non secited” he had been a couple of months ago that quitur. Mr. Franken has behaved with “honor,”
America had finally begun a “conversation” in the Ethics Committee would clear him, but he’s
which men listened “to women about the ways still resigning?
in which men’s actions affect them.”
The closest Mr. Franken came to a remotely
But then, he said, “the conversation turned plausible explanation is when he said, “This deto me. Over the last few weeks, a number of cision is not about me. It’s about the people of
women have come forward to talk about how Minnesota. And it’s become clear that I can’t
they felt my actions had affected them. I was both pursue the Ethics Committee process and,
shocked. I was upset. But in responding to their at the same time, remain an effective Senator for
claims, I also wanted to be respectful of that them.”
broader conversation, because all women deYet plenty of Members of Congress have enserve to be heard, and their experiences taken dured an ethics investigation while conducting
seriously.
normal business. And if Mr. Franken really did
“I think that was the right thing to do. I also nothing wrong, he is doing Minnesota voters a
think it gave some people the false impression disservice by letting himself be run out of the
that I was admitting to doing things that, in fact, body half way through the term they elected him
I haven’t done. Some of the allegations against to serve. By defending himself he would also be
me are simply not true. Others, I remember very helping others, in Congress and out, who are acdifferently.”
cused unfairly.
In other words, Mr. Franken thinks some of
The truth is that Mr. Franken is being run out
his eight accusers are mistaken and the others of town by fellow Democrats in large part for
may be lying. His only admission is that he is a their own political purposes. They want him
great advocate for women.
banished so they can claim to have cleaned their
He continued: “I am proud that, during my own stables so they can attack Republicans who
time in the Senate, I have used my power to be support Alabama Senate candidate Roy Moore
a champion for women—and that I have earned and Donald Trump. Mr. Franken is political bala reputation as someone who respects the last who had to go.
women I work alongside every day. I know there’s
We’d even have a little sympathy for him had
been a very different picture of me painted over he not chosen the disingenuous exit of claiming
the last few weeks. But I know who I really am. innocence but resigning anyway.
Legal Sport Hunting in Africa Is Destructive
The argument made by Terry L.
Anderson and Hannah H. Downey
that hunting can be good for African
elephants and lions suffers from the
same defects of many Trump tweets:
Both are unsubstantiated and full of
misinformation (“Hunting Can Be
Good for Lions and Elephants,” oped, Nov. 29). In truth, legal sporthunting reduces the overall chance
these species can continue to survive
in the wild. Legalized hunting falsely
suggests that funds are being used to
ensure wild populations are being
protected and that the species is recovering. It also reinforces the belief
that exotic animal trophies should be
desired. Moreover, studies show that
legalized hunting of these animals is
directly correlated to increased demand and further illegal poaching.
As evidenced by predictions that
many African animals will disappear
from the wild this century, legal
hunting has done little to protect
these amazing animals. It is simply
time to end the myth that species
can be “conserved” through legal
hunting.
MICHAEL R. HARRIS
Friends of Animals
Centennial, Colo.
The money we hunters have paid
for the privilege of hunting in Africa
has probably preserved more habitat,
saved more animals and provided the
people with more jobs, food and
medical care than the anti-hunters
have or ever will.
MARY M. LEPP
Yankton, S.D.
Expensing Business Meals and Three Martinis
Regarding Andy Kessler’s “The
Expense-Account Racket” (Inside
Views, Dec. 4): Hold it. For all the
exaggerated examples cited, there
are certainly real-life examples
enough to make a good case. But my
main reason for taking clients to
lunch was to be able to talk business in a proper, pleasant setting
away from their phone, secretary
and interruptions. This was business, after all, and the time was
limited. A three-martini meal was
too time consuming usually. The client governed the time. Outings after
work for the same purpose could be
more costly, but if you were a road
warrior away from home and didn’t
want to eat alone, it served two
worthwhile purposes.
BOB HALL
New York
I was a journalist in those frivo-
Thailand Fulfills Its Duties
On North Korea Sanctions
Regarding “Asian Nations Squeeze
Pyongyang” (World News, Nov. 18),
Thailand also has been following the
situation in the Korean Peninsula
closely and remains very concerned
with North Korea’s actions in violation of United Nations Security Council resolutions. As such, we have consistently complied with U.N.
resolutions sanctioning North Korea,
including restrictions on trade and
investment. Our trade with North Korea during the first nine months of
this year has fallen more than 94%
from a year earlier to around $1.6
million and now represents a mere
0.0004% of Thailand’s total trade
with the world. Thailand also has
been consulting with the U.N. Panel
of Experts to ensure full compliance.
BUSADEE SANTIPITAKS
Ministry of Foreign Affairs
of Thailand
Bangkok
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.
lous expense days, and the issue of
lunching with a corporate pal wasn’t
so much how to disguise the bill
from the tax collector, but whether
to let the companion pick up the
tab. If you did and then wrote about
what you learned during the lunch,
you might be accused of losing your
vaunted sense of journalistic impartiality. Better to expense the meal
yourself, and let the taxman decide
if you were really doing business.
FREDERIC GOLDEN
Santa Barbara, Calif.
Public Shaming by the Left
Provoking Non-PC Backlash
Crispin Sartwell clearly hits the insincere shamming nail square on its
publicly self-righteous head (“The
Modern Epic of Denunciation,” op-ed,
Nov. 24).
Last year I was told that if I wasn’t
ashamed of Donald Trump I certainly
“should be.” Kind of a doublewhammy guilt trip. Public shaming
was big last year—so was Hillary
Clinton’s loss.
For this reason I am happy to see
the left is doubling down on the very
tactic that did so much to get president Trump elected.
WILLIAM MORSE
Grosse Ile, Mich.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“We couldn’t see Santa. Her braces
set off the metal detector.”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | A17
OPINION
The Incredible Shrinking Workforce
W
hen the latest jobs report comes out Friday, look beyond the
top-line number. For
months now economists have suggested that the low
unemployment rate—4.1% as of last
month’s report—implies that America is at or near full employment.
Yet the labor market is still below
its prerecession peak, with about
two million jobs missing. Many of
those workers have joined the disability rolls. Others have simply
dropped out of the workforce in favor of leisure time.
The U.S. is two million
workers short of where it
should be. Many are on
disability—or the couch.
The best evidence that the economy isn’t at full employment is that
it is creating too many jobs. When
the economy is recovering from a
recession, employment grows faster
than the population does, making
up for jobs previously lost. In contrast, at full employment, job
growth equals population growth,
keeping employment rates steady.
Which situation holds today? During the past three months, the U.S.
economy has added jobs at a rate
that is about double what’s needed
to keep up with population growth.
This implies the labor market is still
recovering.
Another indicator is the employment rate, defined as the proportion
of Americans 16 and older who are
working. It is always less than 100%
because some people of working age
are retired, in school, or in other
nonmarket activity. Just before the
2007 recession, the employment
rate peaked at 63.4%, meaning in
that boom time over one-third of
the working-age population wasn’t
working. The rate reached a low of
58.2% in November 2010, and it has
now recovered to 60.2%. Still, that’s
more than 3 percentage points shy
of the prerecession peak.
Some of the difference reflects
changing demographics. As the large
baby boomer cohort enters retirement, a greater fraction of the working-age population will be out of the
labor force for natural reasons. This
could account for about two-thirds
of the gap.
But one statistic makes clear that
the missing jobs are not solely a reflection of demographics. The employment rate of people age 25 to 54
is lower than at the prerecession
peak by 1.3 percentage points. Even
adjusting for demographics, the
overall employment rate is still
about 0.8 percentage points shy of
where it would have been in prior
peaks. There are about 256 million
Where Have All the Workers Gone?
Number of new disability applications (left scale) and unemployment rate (right
scale), 2006-2016
3.5 million
12%
10
3.0
8
2.5
6
2.0
4
New applications (left scale)
Unemployment rate (right scale)
1.5
2
1.0
’06
0
’07
’08
’09
’10
’11
Sources: Social Security Administration; Bureau of Labor Statistics
Americans who are 16 and older, so
the job deficit works out to about
two million.
A prime suspect is the increased
number of people declaring that they
are disabled. The correlation is almost perfect between unemployment
and new applications for payments
from government-provided disability
insurance. When the unemployment
rate rises, the number of applications for disability rises correspondingly. As unemployment falls, disability applications do too.
But this drop in new applications
when the economy recovers does
not necessarily bring down the number who receive disability benefits.
Recipients often stay on the rolls
’12
’13
’14
’15
’16
THE WALL STREET JOURNAL.
even when market conditions improve because their skills depreciate
and re-entering the workforce becomes increasingly difficult. As a
consequence, the number of people
on disability has risen from a bit
more than seven million in 2007 to
almost nine million now. Normal
growth associated with a larger population may account for a share of
that, but about three-quarters of the
increase, 1.5 million, represent missing jobs.
Are these new disability recipients cheaters? The statistics here
don’t imply that, but they do suggest
that people respond to incentives.
When the economy is strong, people
work through their disabilities.
When the economy weakens, people
rationally decide to accommodate
their disabilities, rather than continuing to work or to seek low-paying jobs.
This does not, however, explain
the entire problem. Among young
men, whose employment is low by
historical standards, disability is not
a major factor. Evidence suggests
that many young men are opting to
spend their time at home in leisure
activities, perhaps because their job
opportunities are poor. That reflects
a lack of skills suitable for a modern
economy.
Many analysts, along with President Trump, have argued for increased vocational training, which
brings to mind blue-collar professions in manufacturing and the
trades. This is too narrow a view.
American schools could provide people who don’t go on to college with
skills that are more useful in a modern service economy, instead of the
watered-down and impractical academic curriculum currently offered.
Better skills-based training would
raise worker productivity and
wages, reducing the incentive to go
on disability or to choose leisure
over work.
Mr. Lazear, who was chairman of
the president’s Council of Economic
Advisers from 2006-09, is a professor at Stanford University’s Graduate School of Business and a Hoover
Institution fellow.
ly
.
By Edward Lazear
Trump Recognizes That Humiliating Israel Didn’t Bring Peace
F
Jerusalem
or nearly seven decades, the
state of Israel has endured an
unusual humiliation: Alone
among the nations of the world, it
has been denied the sovereign right
to determine its own capital. Israel
has regarded Jerusalem as its capital since its War of Independence
in 1948. It is the seat of Israel’s
president, prime minister, Knesset
(parliament), Supreme Court and
most government ministries. Yet
for the better part of a century, the
U.S. has led what is effectively an
international boycott of Jerusalem
as Israel’s capital, keeping its embassy in Tel Aviv as part of a fiction that the status of Jerusalem
remains undetermined.
The roots of this policy go back
to the first half of the 20th century,
when European diplomats set their
sights on making Jerusalem an “international city”—a kind of second
Vatican, controlled by responsible
Europeans rather than by Jews or
Arabs. When Jewish forces took the
western half of the city in 1948, and
especially after Jerusalem was
united under Israeli rule in 1967, this
fantasy of a Euro-Jerusalem disappeared forever. But rather than recognizing Israeli sovereignty, the international community decided to
leave Jerusalem’s status for “future
negotiations.”
Yet now half a century has
passed, and still there is nothing but
Jewish sovereignty over Jerusalem
anywhere in sight. In a dramatic address Wednesday, President Trump
brought to an end the fiction that
something else is going to happen.
“Today we finally acknowledge the
obvious,” he said. “Jerusalem is Israel’s capital. This is nothing more
or less than a recognition of reality.
It is also the right thing to do.”
Mr. Trump is right about this. But
he also understands that there is
more to it. The dream of rebuilding
Jerusalem, destroyed in Roman
times, is the linchpin that holds Jewish faith and nationhood together.
Three times each day, Jews bless
God as Boneh Yerushalaim, “the
Builder of Jerusalem.” When Jews
read, at every wedding, “If I forget
you, Jerusalem, may my right hand
lose its strength” (Psalm 137:5), we
are teaching a subtle truth: We Jews
cannot give up on restoring our ancient capital without giving up the
source of our strength.
Would we really be giving up on
restoring Jerusalem if Israel negotiated a “deal” to share sovereignty in
the city? Consider the options: Israel will never agree for Jerusalem
construction project, excavation,
restoration or economic initiative
favored by Israel would be subject
to an Arab veto (and probably also
to a European one). This is a formula for reducing Jerusalem to
wretchedness.
For Israelis, then, any conceivable
“deal” over Jerusalem does indeed
mean giving up on the hope of restoring the only capital we’ve ever
had to sanctity and splendor.
Like it or not, this means that foreign powers have to choose—
whether to stand by the project of
establishing a fully sovereign Jewish
state with the right to make Jerusalem its capital, or to limit permanently Israeli sovereignty, while effectively internationalizing Jerusalem
under cover of peace talks with the
Arab states and the Palestine Liberation Organization.
For 70 years, the U.S. and most
other nations have declined to stand
with the Jewish people on this, believing that peace would somehow be
forthcoming if Israel were humiliated
in this way. But this approach has
not brought peace. It has only encouraged Israel’s enemies. This week,
Mr. Trump announced that America
will therefore stand by the Jewish
state. All over the world, Jews are
saying shehehianu, the traditional
blessing thanking God for letting us
live to see this day.
We have been warned by enemies
and by friends that this historic moment will be met with violence. That
is quite possible. Every significant
step in the return of the Jews to Israel and Jerusalem since the Balfour
Declaration has been met with acts
of vengeance. But if this pattern has
a clear lesson for us, it is this: If the
American administration holds firm,
this storm will pass.
Many disparaging things have
been said about President Trump’s
fitness to lead. But this week, on the
issue of Jerusalem, Mr. Trump has
withstood the howling dismay of the
world’s nations, to perform one of
those rare deeds that truly have the
potential to change history for the
better.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
By Yoram Hazony
The president withstands
the howling dismay of the
world’s nations to abandon
a failed 70-year-old policy.
to be divided as Berlin was, with
mutually hostile police forces on either side of a security barrier. Jerusalem was divided in this way from
1948 to 1967, and anyone who lived
through that time of snipers on the
city walls knows that such a scheme
amounts to destroying Jerusalem,
not rebuilding it. The other choice
is to govern the city by committee—which would mean that every
Mr. Hazony is president of the Jerusalem-based Herzl Institute. His
book “The Virtue of Nationalism” will
be published next year by Basic.
End the Alternative Minimum Tax, Don’t Mend It
T
no
here are many unfortunate provisions in the tax-reform bills
recently passed by the House
and Senate, but at least one good one:
The House bill would repeal the Alternative Minimum Tax. The Senate bill,
in an effort to find a little revenue,
would preserve the AMT but somewhat reduce its bite.
As a professor of tax law, I am
aware of many terribly defective tax
rules. But no feature of the Internal
Revenue Code seems to me less rational than the modern AMT. Congress created the AMT in 1969 to impose at least some income tax on
what committee reports described as
“a small minority of high-income individuals” who had manipulated the
then-current rules “to escape tax on
a large proportion of their income.”
Lawmakers revised the rules to target deductions of “tax preference
items,” such as mineral depletion allowances, intangible drilling costs,
and accelerated depreciation, as well
as a special deduction then available
for capital-gains income.
The core idea was to impose a
lower tax rate, but on a broader tax
base, stripped bare of most deductions. For a while, this mostly worked.
The AMT was a nuisance to a few
high-income people—never more than
0.5% of all taxpayers in the early
years—but otherwise was largely
harmless. Yet by a series of small and
unintentional steps, the AMT became
both broader and less focused on
wealthy tax-avoiders.
In 1978, Congress effectively removed capital-gains preferences
from the AMT’s reach. Since very
high-income taxpayers take more
than half their income as capital
gains, this largely made them immune from the AMT.
In 1981, Congress indexed the regular tax brackets and exemptions to
adjust automatically for inflation,
but did not add comparable indexing
to the AMT. In 1986, Congress dramatically reduced regular tax rates,
but not the AMT rates.
The result is that the AMT’s effect
today is quite at odds with its expressed intent. In 2015, about 4.5
million taxpayers—roughly 3% of total filers—paid it, according to official IRS estimates. Most of these
people were well-off but not superrich. Less than 20% of taxpayers with
n-
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Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
adjusted gross incomes above $1 million paid the AMT, compared with
about 60% of those with incomes between $200,000 and $500,000.
The afflictions of this latter group
do not quickly bring any hankies to
tear-soaked eyes. Nonetheless, even
high earners deserve a tax that is fair
and based on some rational theory,
and the AMT is neither.
Though supposedly aimed at very
wealthy taxpayers, the AMT creates
collateral damage. Consider David
and Margaret Klaassen, whose income in 1994 was only $83,000. They
were hit by the AMT simply because
they made state and local tax payments, and because they had 10 children. Regular tax computations allow
deductions for state and local taxes
and personal exemptions, but the
AMT does not. The result was that
the Klaassens’ AMT exceeded their
regular tax by 20%. They contested
the AMT assessment and fought the
IRS. Although a federal court agreed
that it was grossly unfair to impose
the AMT on taxpayers who were obviously not its original targets, it
ruled that the Klaassens had to pay
it nonetheless.
It started as a levy on
superrich tax avoiders.
It metastasized into
something quite different.
The AMT is a compliance nightmare, too. It imposes alternative
computations on a wide range of
items, requiring taxpayers (or their
accountants) to grapple with two
separate sets of tax rules. IRS Form
1040 instructs that if taxpayers aren’t
sure whether they owe an AMT, they
should fill out a 16-line worksheet to
make a preliminary determination. If
the worksheet suggests the answer
may be yes, taxpayers are instructed to fill out Form 6251, which
has 64 lines and is even more convoluted. Thus even many taxpayers
who do not pay the AMT in the end
are obligated to grapple with its
complexities.
In the interest of full disclosure, I
should note that my wife and I have
paid the AMT for over a decade. But
even if a tax bill that eliminates the
AMT leaves me paying the same
amount, that would be a win for me
and millions of other Americans.
As the conference committee begins negotiating to reconcile the two
bills, the better approach is obvious.
The House plan eliminates these
problems by eliminating the AMT.
The Senate bill offers a little relief,
but does nothing fundamentally to
fix a tax provision that badly needs
to be repealed.
Mr. Schmalbeck is a professor of
tax law at Duke University.
Notable & Quotable: Who’s Killing Brexit?
Joseph C. Sternberg in his Political
Economy column on WSJ.com:
Who is trying to kill Brexit? Brussels is the likeliest suspect, but it’s a
tough case to make. Immediately after Britain voted to leave the EU in
last year’s referendum, the European
Commission seemed set to take a punitive approach to negotiations,
turning the screws on Britain to discourage other member states from
departing.
Events have unfolded differently.
Brussels was savvier than Brexiteers
expected in taking the domestic political temperature of the EU’s 27 other
member states and building a position more realistic than punitive. The
only red line, and it’s a big one, is
this: The U.K. must not leave the EU
with a more generous arrangement
than it had as a member state, enjoying similar or better trade benefits
but fewer of the costs. This is an entirely sensible position, and shouldn’t
surprise anyone.
Within that red-line constraint,
Michel Barnier, the French politician
who is the EU’s chief Brexit negotiator, has proved as flexible as is reasonable to expect. Rather than driving the hardest possible bargain in
the early rounds of talks, he has
pushed aggressively for EU members
to discuss the possibility of a future
trade agreement with the Brits. Britain has failed to avail itself of Mr.
Barnier’s flexibility because it still
can’t decide what exactly it wants to
ask him for. . . .
Perhaps it’s the so-called bitter Remainers at home who are engaging in
a last-gasp bid to derail Brexit? Conservative Remainers, especially those
in Parliament, have frequently been
vilified by pro-Brexit campaigners and
media outlets. But did Brexiteers think
that the 48% of the voters who chose
Remain in the referendum would simply disappear? The challenge for Brexiteers was always going to be devising
some method of divorcing the EU that
wouldn’t alienate the large chunk of
the Remain vote that both parties will
need to win the next parliamentary
election. Brexit’s 52% margin means
little here since there’s no telling how
deep that support would run for any
of the individual Brexit options now
on the table.
Which is why Prime Minister Theresa May herself also isn’t a viable
suspect in the Brexit murder mystery.
. . . Any prime minister would struggle to represent all the factions currently in play in Britain.
What’s killing Brexit, then, isn’t a
person. It’s a fact: EU membership
has always embodied the political
and economic trade-offs that Brits
and other Europeans are broadly
prepared to make with each other.
Britain’s membership in the single
market has given it economic benefits—for instance, a large supply of
freely moving labor to make up for
Britain’s difficulties stimulating investment in improved productivity—
that compensate for the domesticpolicy shortfalls.
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THE WALL STREET JOURNAL.
no
n-
co Fo
m rp
m e
er rs
ci on
al a
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ly
.
A18 | Friday, December 8, 2017
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TECHNOLOGY: ANHEUSER-BUSCH ORDERS TESLA ELECTRIC BEER TRUCKS B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2636.98 À 0.29%
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THE WALL STREET JOURNAL.
* * * *
S&P IT À 0.65%
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WSJ $ IDX À 0.29%
Friday, December 8, 2017 | B1
LIBOR 3M 1.536
NIKKEI (Midday) 22772.53 À 1.22%
GE Power Cuts About 18% of Jobs
Cost-reduction effort
in struggling business
is part of new CEO’s
broader reorganization
Reduced Demand
Traditional fuels at GE are
expected to contribute less to
future electricity generation.
Electricity generation by source
(terawatt hours)
BY THOMAS GRYTA
Projections
Coal
10,000
5,000
0
Gas
10,000
5,000
0
Oil
10,000
5,000
0
Nuclear 10,000
0
Renew- 10,000
ables
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
5,000
0
2000 ’15
’25 ’30
Source: IEA World Energy Outlook, 2017
A GE Power plant in Hungary. The conglomerate’s power unit produces a third of the world’s electricity.
THE WALL STREET JOURNAL.
been revamped since then,
merging with GE’s Energy
Connections division and selling water assets and other operations.
Its biggest rival, Siemens
AG, said last month it would
cut about 6,900 jobs to combat
by GE.
“This decision was painful
but necessary for GE Power to
respond to the disruption in
the power market, which is
driving significantly lower volumes in products and serPlease see GE page B2
weak demand.
Former CEO Jeff Immelt expanded GE’s power business
through acquisitions, including
the 2015 purchase of assets
from Alstom. The deal was a
big bet on coal-fueled power,
nearly doubling GE’s fleet of
large turbines in coal plants to
more than 1,500 world-wide.
But industry preferences were
changing, with the growth in
electricity generation shifting
toward wind and solar, technologies that don’t rely on the
large turbines manufactured
In China, Sam’s Goes Up Market and Scores
no
SHENZHEN, China—Some
foreign businesses have a hard
time being as successful in
China as they are at home. It’s
the opposite for Sam’s Club,
the membership chain owned
by Wal-Mart Stores Inc.
Sam’s Club has struggled in
the U.S. to attract higher-income consumers it covets, analysts say, in part because the
chain is closely associated
with Wal-Mart, which focuses
on budget-minded households.
That association hasn’t
been an issue for Sam’s in
China, which is home to three
of the top five Sam’s Club
stores world-wide as measured by sales. Since 2008, the
top Sam’s Club store globally
is one in Shenzhen, a tech center near Hong Kong.
What’s different about
China? For starters, Sam’s
Club has positioned itself
there as a place for imported
goods and high-quality foods,
not bulk items and closeouts.
And in China, the chain has no
on-the-ground competition
from its main U.S. rival, retailer Costco Wholesale Corp.
In the U.S., Sam’s Club
stores have struggled to attract the kind of well-off shoppers who keep sales humming
at Costco, analysts say. Sam’s
Club stores are heavily concentrated in the Southeast,
while Costco stores are densest along the wealthier West
Coast. In China, Sam’s Club
stores are positioned in some
of the country’s most affluent
and densely populated cities.
“The quality here is guaranteed,” said 47-year-old Yu Yufang as she shopped at the No.
1 Shenzhen store. “A lot of
Chinese products, I feel, aren’t
trustworthy.”
n-
BY WAYNE MA
Crowd Pleasers
Sam's Club has a relatively small presence in China, but world-wide
three of the chain’s top five stores by sales are in the country.
Sam’s Club stores by country
U.S.
Mexico
Brazil
China
0
100
Note: Data as of Dec. 4
200
300
Source: Wal-Mart
Another shopper, Zhou
Rong, 39, fits squarely in the
demographic Sam’s Club caters to in China: affluent
moms. Ms. Zhou, whose 2year-old daughter plunked on
the keys of a digital piano as
they shopped, said Sam’s carries imported products Chinese stores don’t stock.
400
500
600
700
THE WALL STREET JOURNAL.
Sam’s now has nearly 1.9
million members in China,
which is home to 19 of its 866
stores globally. About half of
its members in China joined in
the past five years as the retailer added outlets and sharpened its focus on affluent
women with young children.
“That target core member is
STREETWISE | By James Mackintosh
Tax Bill
Stirs Up
Issuance
Of Bonds
BY HEATHER GILLERS
AND MELANIE EVANS
Hospitals, universities and
nursing homes across the U.S.
are rushing to borrow money
tax-free—while they still can.
Last week, borrowers issued
more than $4 billion in new
“private-activity” bonds, which
allow nonprofits and some forprofit firms to raise money for
development projects perceived to have a public benefit.
That was triple the amount
issued during the same week
in 2016, according to a Municipal Market Analytics analysis
of Bloomberg data, and one of
the highest weekly issuances in
the past two years. Prices on
private-activity bonds have increased this week alongside
other municipal bonds.
The borrowing outbreak is
happening as Congress debates
whether to do away with longheld tax exemptions on these
bonds beginning Jan. 1. A
House bill would eliminate the
benefit altogether, while a bill
that passed the Senate would
leave the bonds untouched.
The Senate and House are
working to send President
Donald Trump an agreed-upon
version by Christmas. House
Ways and Means Committee
Chairman Kevin Brady (R.,
Texas), the lead negotiator
from the House, this week suggested he might favor limits.
“I’m convinced their mission has drifted quite a bit,” he
said. “They should be focused
on infrastructure projects that
help build and enhance the national infrastructure because
they’re receiving national subsidies from every taxpayer in
Please see BONDS page B2
ly
.
5,000
AKOS STILLER/BLOOMBERG NEWS
General Electric Co. said
Thursday it was cutting 12,000
jobs in its power business, or
nearly 18% of the unit’s workforce, as the conglomerate
slashes costs and battles overcapacity in an industry in upheaval.
GE’s power unit has been a
drag on earnings for the struggling company as global demand has dropped in tandem
with GE integrating its acquisition of power assets from
France’s Alstom SA. GE has
said it misjudged the market
as volume dropped in traditional coal and gas-fired
power, while renewable energy
sources grew.
The shrinking of the power
business is part of a broader
reorganization at GE under
new Chief Executive John
Flannery, who last month cut
the once-sacred dividend in
half and sharply lowered profit
targets.
The power business, which
makes turbines for coal and
gas-fired power plants, is one
of the 125-year-old company’s
original businesses and produces one-third of the world’s
electricity. It is GE’s largest by
both revenue and number of
employees. It generated about
$27 billion in revenue last year
and employed 57,000 at the
start of the year. But it has
See more at WSJMarkets.com
a mom around 35 to 40 years
old,” said Andrew Miles, president of Sam’s in China. “She
wants better-quality products.
She’s concerned about food
safety and quality. She’s willing to pay for premium products, but she wants value.”
Sam’s success is a reminder
that retailers must tailor
brands and products to meet
the needs of specific groups,
said Ben Cavender of China
Market Research Group.
“They’ve done a good job of
segmenting the market and
being choosy about who they
market to and where they
open their stores,” Mr. Cavender said of Sam’s.
Sam’s in the U.S. also is
sharpening its focus. During
an investor presentation in
October, Chief Executive John
Furner said the chain served
too many types of customers
Please see RETAIL page B2
INSIDE
LEFT AND
RIGHT BLUR
ON AT&T DEAL
REGULATION, B6
Growth Still Beats Value in Stock Fight
Big Money Fund Sets
Daily Investment Limit
Critics of
the Trump tax
plan accuse
Republicans
of a giveaway
to billionaires,
but the stock market gets
more granular: Which billionaires? The immediate
conclusion was that the winners were the Wall Street
elite and the losers the Silicon Valley elite, as bank
shares soared and tech
stocks tumbled last week.
Under the surface there
are two much deeper
changes under way, and the
important question is
whether the tax plan marks
the start of a long-run shift
in prospects for stocks or
was merely a trigger for an
overdue rotation.
The scale of the rotation
itself was phenomenal. Over
the five days up to Monday,
cheap U.S. stocks beat those
with faster earnings growth
by 3.7 percentage points, the
most in such a period since
the 2007-09 recession ended
in the summer of 2009. Investors again began looking
for value in the market,
rather than paying up for expensive go-go growth stocks.
SHANGHAI—The world’s
largest money-market fund by
assets will limit the daily
amount individuals can invest
in it, taking further steps to
slow inflows after Chinese
regulators raised concerns
about its rapid growth.
Yu’e Bao, a $235 billion online money-market fund run
by an affiliate of Alibaba
Group Holding Ltd., will cap
daily investments to 20,000
yuan ($3,024) starting Friday,
its manager said Thursday.
Beijing-based Tianhong Asset Management Co. this past
summer imposed a 100,000
yuan limit on the size of new
individual accounts in the
fund, lowering that limit twice
this year.
Tianhong said it aims to
maintain stable operations at
the money-market fund and
adhere to its purpose as a
cash-management vehicle. The
manager said the latest
changes were voluntary and
wouldn’t affect the vast majority of its roughly 370 million
account holders because 98%
of them invest under its limit.
Yu’e Bao, whose name
means “leftover treasure” in
Chinese, draws funds from users of Alipay, an online and
mobile-payments
network
Rotation, Rotation, Rotation
The FANGs of Facebook, Amazon, Netflix and Google parent Alphabet,
outperformance vs. S&P 500 financials
40 pct. points
30
20
10
0
J
F
M
A
M
Source: Thomson Reuters
It is easy to assume this
was purely about a lower
corporate-tax rate. The biggest growth stocks are multinational tech companies
that have ruthlessly exploited international tax
dodges, so they won’t gain
much from a lower headline
rate.
Alphabet, the parent of
Google, set aside just 18% of
pretax income to pay taxes
so far this year, already below President Donald
Trump’s hoped-for 20% cor-
J
J
A
S
O
N
THE WALL STREET JOURNAL.
porate rate.
The Russell 1000 Value index of cheap stocks is dominated by domestically oriented or physical-assetowning sectors where it is
harder to avoid taxes, including financial services, health
care and utilities. All would
see a tax cut.
Yet taxes are only part of
the story. Just as important
are the correction of shortterm excesses in the market
and the potential acceleration of the economy, and so
of interest-rate rises.
One indicator that taxes
weren’t the only thing that
matters comes from looking
at cheap and expensive
stocks within sectors. Andrew Lapthorne, head of
quantitative equity research
at Société Générale, says
value stocks also beat pricey
stocks by the most since
2009 within sectors, and
there is no decent tax explanation for why cheap financials or techs should beat expensive financials or techs.
“This was a value rotation,” he says.
It seems obvious that the
Senate tax approval was the
trigger, but the market was
ready for some froth to be
blown off the biggest gainers.
Excess enthusiasm was
obvious in growth stocks,
and particularly the “FANG”
group of Facebook, Amazon,
Netflix and Google, up an
average 59% this year by the
start of this month. The S&P
500 tech sector was up 39%
before the selloff began, and
had an unusually rapid and
smooth period of gains toward the end of its rise. One
popular measure of shortPlease see STREET page B2
used by many Chinese.
Thanks in large part to the
fund’s generous investment
yields—which were 3.99%
Thursday on an annualized basis—its assets have doubled
over the past year. Yu’e Bao’s
returns have been significantly
higher than Chinese bank deposit rates because the fund
invests in many high-yielding
assets such as Chinese bank
certificates of deposit.
The fund’s rapid asset
growth has sparked concerns
from China’s securities regulator, which oversees the country’s $1 trillion money-market
fund industry. The China Securities Regulatory Commission
this past fall tightened liquidity rules and investment
guidelines for money-market
funds to tame what it called
“unruly growth” in the industry.
Growth in Yu’e Bao’s assets
slowed in the third quarter,
increasing 9% after the fund
twice lowered its maximum investment limits for individuals
and shifted some of its portfolio into more liquid assets. The
fund’s third-quarter growth
rate was down from 41% and
25% in the first two quarters
of this year, respectively.
—Yifan Xie
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B2 | Friday, December 8, 2017
INDEX TO BUSINESSES
A
D
S
ABN AMRO Group....B11
Alaska Air Group......B11
Alibaba Group .. B1,B2,B4
Allergan.......................B4
Alstom.........................B1
American Airlines Group
...................................B11
Amgen.........................B4
Anheuser-Busch InBev
.....................................B4
Ant Financial Services
Group.........................B4
AstraZeneca................B4
AT&T............................B6
Deutsche Bank..........B12
Samsung Bioepis........B4
Samsung Electronics B12
Shoprite Holdings.......B3
Siemens.......................B1
SK Hynix ................... B12
Société Générale
........................... B11,B12
Southwest Airlines .. B11
Steinhoff Africa Retail
.....................................B3
Steinhoff International
Holdings....................B3
Sun Art Retail Group.B2
B
Bain Capital ................ B6
Bank of America.......B11
Beijing Bikelock
Technology................B4
Beijing Mobike
Technology................B4
BlackRock..................B10
BNP Paribas..............B12
Boeing ....................... B11
Bristol-Myers Squibb . B4
C
Caterpillar............B3,B11
Cboe Global Markets B11
Citigroup....................B11
CME Group................B11
Comcast.......................B6
Costco Wholesale.......B1
Credit Suisse Group . B10
Fannie Mae ............... B12
Freddie Mac .............. B12
G
General Electric...B1,B12
Goldman Sachs Group
...................................B11
Greenbrier...................B3
H-J
Hobby Lobby Stores...B2
HSBC Holdings..........B10
JD.com.........................B2
JPMorgan Chase.......B11
K-L
KKR..............................B6
Love's Travel Stop......B2
M-N
Merck...........................B4
Micron Technology....B12
Morgan Stanley.B10,B11
NiceHash...................B11
P
Pfizer...........................B4
Ping An Insurance
(Group) of China .... B10
Prudential..................B10
T
Tencent Holdings........B4
Tesla............................B4
The Louvre..................A8
Tianhong Asset
Management.............B1
Time Warner...............B6
TTX..............................B3
U
UBS Group.................B10
V
Visa..............................B4
Volkswagen.................B6
Vornado Realty Trust.B6
W
R
Wal-Mart Stores.........B1
Roche Holding.............B4
Royal Bank of Canada
...................................B11
XPO Logistics..............B3
Yihaodian .................... B2
X-Y
INDEX TO PEOPLE
C
I
P
Cargill, Jon..................B2
Corridore, Jim.............B2
Immelt, Jeffrey R.......B1
Peruzzi, Larry............B11
F
Flannery, John.....B1,B12
Ford Jr., Harold.........B10
G-H
Green, David ............... B2
Gulliver, Stuart.........B10
Hayes, Arthur...........B11
R
Roth, Tony.................B11
K
T
Kobal, Marko.............B11
Kovner, Bruce.............M2
Škraba, Andrej P.......B11
Thiam, Tidjane..........B10
Tisch, James.............B12
M
Ma, Pony.....................B4
GE
W
Wang, Gang ................ B4
Wiegand, Eric............B11
WASHINGTON—Familyowned businesses including grocery stores, craft shops, small
manufacturers and others are
worried tax legislation in Congress could leave them at a disadvantage to big corporations
and other competitors.
At issue for these businesses
is their structure as trusts, established to preserve an enterprise for succeeding generations, protect against estate
taxes or a divorcing spouse or
other claimants who might try
to seize a stake. Some familyowned firms say the Senate version of the tax bill holds risks
for them because it excludes
trusts from a new tax deduction.
Family-owned businesses are
a slice of the universe of “pass
through” companies—partnerships, limited liability companies and S Corporations—that
pay taxes through individual
rather than corporate returns.
Trusts in this category of business include Hobby Lobby
Stores, the arts-and-crafts chain
founded by billionaire David
Green, and Love’s Travel Stop.
They also include such small
businesses as grocery stores,
packaging makers, wholesalers
and beer distributors.
Tax writers in the Senate
BONDS
Continued from the prior page
America.”
Private-activity bonds allow
nonprofits and some for-profit
firms to do what state and local governments do: borrow
money at cheaper rates. Investors don’t demand as much interest because they don’t have
to pay taxes on their earnings.
Their name refers to their
use: Proceeds pay for a variety
of projects that benefit private
entities like charter schools,
museums, private universities,
hospitals and nursing homes.
Proceeds have averaged about
$110 billion annually over the
past decade.
Many borrowers and investors aren’t waiting to see what
happens in Washington. Bond
buyers last week rushed to
purchase
private-activity
bonds for a railroad planned
along Florida’s coast, putting
in bids for approximately $2
billion worth of bonds even
though only $600 million was
Senate Version
Entails Big Effect
On Certain Trusts
Trusts can vary in form,
and the tax treatment is complicated. But for a certain type
of trust known as an “electing
small business trust, or ESBT,”
created by a 1996 law, the consequences of the tax bill could
be profound if the Senate version of the tax bill becomes
law.
Earnings generated by such
trusts are taxed as ordinary income—even if that income is
retained with the company to
be reinvested later. Every dollar
of income is taxed at the top
marginal rate, currently 39.6%,
but 38.5% under the Senate
bill. The Senate bill creates a
crafted the bill in a way that
prevents trusts and estates that
operate businesses from reaping
the benefits of new low business
tax rates. Republican tax writers
haven’t explained their motives,
but the move could save billions.
The issue isn’t about the tax
levied at death on large estates
that Republicans are trying to
for sale, said Wes Edens, chairman of Fortress Investment
Group, which is leading construction of the project. The issuer was Florida Development
Finance Corp.
“Pricing was probably a little bit better than we thought
it would be,” Mr. Edens said.
One borrower in North Dakota decided to seek buyers for
$363 million in bonds three
weeks earlier than planned.
The proceeds would help pay
for a new Trinity Health hospital and replace two buildings
constructed about 100 years
ago. Preliminary documents
were filed Tuesday to avoid
the risk of being shut out of
the tax-exempt markets, said
Dennis Empey, chief financial
officer for Trinity Health.
Another hospital operator,
Mercy Health in Cincinnati,
also rushed a planned $585
million issuance to market
while the congressional tax debate unfolded, said Jerome
Judd, Mercy’s senior vice president of treasury and investment. The system, which operates 23 hospitals in Ohio and
new rule for pass-through
businesses that gives those
that qualify up to a 23% deduction on their tax rate.
Trusts wouldn’t get that deduction.
In contrast, other qualifying
pass-through businesses would
receive a top tax rate of just
under 30%, when factoring in
the new deduction.
The tax rate applied to
corporations would drop to
20% under both House and
Senate tax bills. In other
words, businesses held in trust
would have to pay taxes of
from 10 to 20 percentage
points more than other types
of companies.
Rewriting the portion of
the tax bill that deals with
pass-through entities is one of
the biggest hurdles remaining
for Republican lawmakers.
reduce. It is about the income
taxes due when a trust or an estate owns a business.
“This is potentially devastating to myself and others,” said
Deborah Jacob, chairman of
MJS Packaging, which employs
more than 100 people to design,
make and distribute packaging
and containers.
Ms. Jacob would like to keep
On the Rise
position in France and involved a long review process
and negotiations to win political support. GE also had to
outmaneuver German and Japanese rivals and agreed to create jobs in France.
The job cuts will happen
over the next 18 months with
about half of them in Europe,
where the power business has
large factories in France, Germany and Switzerland, according to a person familiar with
the matter. The company still
expects to meet its obligations
to the French government under the Alstom deal, which included a promise to create
1,000 high-skilled jobs by the
end of 2018, the person said.
The unit has 153 manufacturing, repair and service sites
around the globe. Two of its
biggest U.S. facilities are in
Schenectady, N.Y., and Greenville, S.C. Several hundred
workers at those sites have
been notified of layoffs, the
person said.
“We are not certain these
efforts will be enough to turn
around Power,” said Jim Corridore, an analyst with CFRA
Research. He said the power
sector pressures are real but
GE made it worse with poor
execution and by consistently
telling investors that things
would get better.
“GE made promise after
promise,” he said. “There was
always a reason for why there
was no reason worry.”
—Allison Prang
and Russell Gold
contributed to this article
Private-activity bonds account for
a significant part of the high-yield
bond market, which has rallied in
recent weeks.
S&P Municipal Bond High Yield Index
272
271
270
269
268
Oct.
Nov.
the Livonia, Mich., company going to hand it down to a new
generation, but “it takes a lot of
hard work” and “it’s going to be
made almost impossible given
the uneven playing field that’s
being presented.”
Bigger companies are also
worried about being put at risk.
“It does put us at a competitive
disadvantage,” said Jon Cargill,
chief financial officer of Hobby
Lobby.
The subject came up at a
closed-door lunch among Senate
Republicans last week.
“We’ve singled them out to
be mistreated,” complained Sen.
Ron Johnson (R., Wis.), about
the motives of tax writers. “We
couldn’t offer that kind of discount to everybody so let’s cut
out trusts because they’re an
easy one to pick off—we always
hear about trust babies.”
Mr. Johnson plans to press
for trusts to be entitled to the
same treatment as any other
pass-through when a conference
committee resolves differences
between House and Senate bills.
Mr. Johnson added that Republican tax writers were constrained by their commitment
to keep the cost of the bill at
$1.5 trillion over a decade before accounting for economic
growth, meaning not everybody
could get a break.
ing will be used for outpatient
investment and refinancing existing debt, he said.
Congress first established
rules for these bonds in 1968,
offering a specific list of approved projects, including airports and low-income housing.
In the 1980s, Congress added
new types of private-activity
bonds and capped how much
nonprofits could issue, but that
cap was lifted in the 1990s.
Some critics of the bonds
have argued certain borrowers
shouldn’t be able to benefit
from the exemption. A Congressional Budget Office report
in December found that some
projects financed with privateactivity bonds “probably would
take place without a subsidy”
and others likely wouldn’t be
worth the cost.
Hospitals, universities, engineers, airports, bond lawyers
and public officials have argued that ending the tax exemption for these bonds would
make it more difficult to complete vital projects.
—Richard Rubin
contributed to this article.
Dec.
Source: S&P Dow Jones Indices
THE WALL STREET JOURNAL.
Kentucky, said the bonds are
expected to be priced next
week instead of next year’s
first quarter.
Loss of access to tax-exempt
financing would raise Mercy’s
borrowing costs, leaving less
money for capital investments
and community outreach, Mr.
Judd said. The planned financ-
STREET
Continued from the prior page
term momentum, the relative strength index, showed
the S&P tech sector at its
most overbought since at
least 1990 late last month.
The best hope for those
who like value stocks would
be a shift to faster U.S.
growth and inflation. Mr.
The best hope for
value stocks would be
a shift to faster U.S.
growth and inflation.
Trump’s economic team insist that tax cuts will feed
through into higher wages,
which in turn should boost
inflation and prompt the
Federal Reserve to raise
rates more quickly. Even if
critics are right that the
White House calculations
make no sense, the Fed is already planning to keep lifting rates, the labor market is
tight, inflation is close to the
target 2% and commodity
prices have been rising since
the summer. Investors still
believe in low inflation for a
very long time, but it is easy
to see why that might
change and push up bond
yields.
This matters to tech and
value stocks because tech
and other growth companies
tend to have their earnings
far in the future.
With higher rates, future
earnings discounted back to
today look less valuable,
while the long-term problems faced by old-economy
companies become less important as the focus shifts to
how much they will make in
the short term.
In other words, higher
rates ought to make growth
less appealing and value
more appealing, all else
equal.
Last week’s tumble happened without any pickup in
investors’ inflation expectations, with Treasury bonds
implying just 1.88% inflation
over the next decade.
If the market comes to believe in inflation, it would
create a fundamental reason
for value to start performing.
Without that, the depressing truth for value investors
is that the market’s obsession with new technology
has probably had only a brief
interruption.
QILAI SHEN/BLOOMBERG NEWS
no
Continued from the prior page
vices,” GE Power Chief Executive Russell Stokes said in
prepared remarks. He said the
company anticipates those
challenges continuing.
Mr. Flannery, who took over
in August, is focusing on GE’s
power, aviation and healthcare divisions as he implements a sweeping turnaround
effort at the 125-year-old conglomerate. At the end of 2016,
GE had around 295,000 employees.
In a presentation last
month, Mr. Flannery highlighted GE’s mistakes in the
power business, saying it was
a tough market “and we have
exacerbated the market situation with some really poor execution. It’s fixable.”
Executives warned then
that the business was sitting
on too much unsold inventory
and that its operating profits
would fall 20% this year and
an additional 25% in 2018.
They also pledged to reduce
costs and shrink its factory
footprint.
Beyond the broader market
challenges, GE didn’t move
quickly enough to make cuts
and other changes on top of its
effort to integrate the Alstom
assets, people at the company
and industry observers say.
Mr. Flannery also has said the
deal was overpriced and was
hurt by its delayed closing.
The deal was met with op-
S
Sembrot, James..........B4
Stokes, Russell...........B2
BY SIOBHAN HUGHES
co Fo
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Edens, Wes.................B2
Empey, Dennis............B2
J
Jacob, Deborah ........... B2
Johnson, Ron .............. B2
Joly, Stéphane............B2
Judd, Jerome...............B2
Tax Shifts Unsettle Family Shops
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E
BUSINESS & FINANCE
ly
.
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.
F
THE WALL STREET JOURNAL.
* ***
A Sam’s Club in Zhuhai in southeast China. Wal-Mart has 19 of the stores in the country and plans to double the number by 2020.
RETAIL
Continued from the prior page
in the U.S. and would now focus on suburban families with
household incomes between
$75,000 and $125,000 a year,
the fastest-growing segment
of its membership.
Despite its solid record in
China, Sam’s faces challenges
with the potential entry of
Costco, which has operated in
neighboring Taiwan for two
decades. And online rivals
pose an increasing threat.
Chinese e-commerce giant Alibaba Group Holding
Ltd., which is adding more imported goods, is also making
bets on bricks and mortar.
Last month, Alibaba said it
would pay $2.88 billion for a
36% stake in Wal-Mart rival
Sun Art Retail Group Ltd.
Costco this year launched its
own storefront on Alibaba’s
Tmall marketplace, after selling
some products on the platform
since 2014. Retail consultant
Stéphane Joly at Altavia Group
in Shanghai said he expects
Costco to build physical stores
within the next two years.
“We continue to explore the
market” in China, Costco Chief
Financial Officer Richard Galanti said.
Eager to maintain its edge,
Sam’s plans to “put our foot on
the gas” in China by doubling
the number of clubs to 40 by
2020, Mr. Miles said. The company also is selling products
through Alibaba rival JD.com.
Wal-Mart owns a stake of
about 10% in JD.com, including
a 5% stake it received from the
site last year in exchange for
control of struggling Chinese
online grocer Yihaodian.
Wal-Mart focused on building giant hypermarkets when
it entered China in 1996, and
they now number at least 430
here. Sam’s Club grew more
slowly over the same stretch,
opening fewer than one club a
year on average.
Wal-Mart doesn’t break out
revenue for China. According
to Wal-Mart’s earnings calls,
sales growth for China stores
open at least a year, including
hypermarkets and clubs, has
been roughly flat on average
for the past 11 quarters.
Mr. Miles said Sam’s membership numbers in China
slipped last year after the chain
raised its annual membership
fee to about $40 from $22. Mr.
Miles said membership is back
up again but declined to offer
specifics. The customers who
let their memberships lapse
“probably were the ones who
couldn’t come with us on the
journey,” he said.
Sam’s doesn’t break out
other memberships by country and hasn’t given an update on its global membership since 2013, when it stood
at 47 million.
Visiting a Sam’s Club here
means a blizzard of pitches.
Food samples abound, and
there are dozens of product
demos for shoppers to watch,
for Dyson vacuum cleaners,
Bose speakers and Oster juicers—many more than are
found in a typical U.S. store,
Mr. Miles said.
The retailer also makes an
effort to describe its products
to Chinese customers, advertising that its “black pork” specialty meat is reared for at least
200 days among the mountains
and pine forests of northeastern China. Fresh eggs are guaranteed to be no more than 12
days old, and each egg has a
printed serial number members
can type into their smartphones to learn production
date, origin and other details.
Last year, clubs began to offer carts big enough to seat
two children, partly to reflect
the loosening of China’s “onechild” policy.
Mr. Miles added the topgrossing store benefits from
another feature that would be
familiar to U.S. customers:
parking. The store became No.
1 shortly after it moved to a
new location with more parking spaces, he noted.
“Our target members pretty
much all drive to the club,”
Mr. Miles said. “The car park
is crucial.”
—Chunying Zhang in
Shanghai and Sarah
Nassauer in New York
contributed to this article.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | B3
NY
* *
BUSINESS NEWS
Three customers of unit
will receive $20 million
in restitution for
unnecessary repairs
BY JAMES R. HAGERTY
AND BOB TITA
A unit of Caterpillar Inc. admitted that it cheated customers by performing unnecessary
repairs to their railcars and
pleaded guilty to dumping
brake shoes and other parts
into the ocean to hide evidence,
according to court documents.
United Industries LLC, part of
Caterpillar’s Progress Rail Services unit, agreed to pay a criminal fine of $5 million as well as a
total of $20 million in restitution to three railcar-owning
companies: TTX Co., Greenbrier
Cos. and the Pacer International
unit of XPO Logistics Inc.
The fine and restitution are
modest for a large company
like Caterpillar, but the case
represents a blow to its reputation for quality service.
The Illinois-based manufacturing giant entered its guilty
plea in U.S. District Court for
the Central District of California Thursday afternoon.
Caterpillar said it had
“taken
corrective
action
against employees involved in
this matter” and “enhanced its
compliance program.” The
company said it hadn’t found
any “safety issues related to
this matter.”
The Wall Street Journal reported three years ago that
some workers at the Caterpillar unit had resorted to
smashing brake parts with
hammers, gouging wheels with
chisels or using chains to yank
handles loose, according to
current and former employees.
United Industries employees
told federal investigators that
they were encouraged by certain
supervisors to increase revenue
by making unneeded repairs.
United at the time operated a
repair facility at the Port of
Long Beach, a business from
which it has since withdrawn.
The company’s duties included
inspecting railcars passing
through the Southern California
port to see whether any parts
needed to be repaired or replaced under industry guidelines, according to an exhibit at-
NATALIE BEHRING/BLOOMBERG NEWS
Caterpillar Pleads Guilty in Railcar Case
Equipment maker Greenbrier is among those to be compensated. Caterpillar also will pay a $5 million fine.
tached to the plea agreement,
filed in federal court last month.
Employees sometimes replaced parts on railcars even
when those parts didn’t show
signs of damage sufficient to
require replacement under industry standards, according to
court documents. They “would
also knowingly pick random
repairs to make on the railcars
without conducting an inspection” meeting those standards,
the documents said.
Inspectors from the Federal
Railroad Administration and
the Association of American
Railroads make periodic visits
to rail-repair yards to check
whether proper procedures are
being followed and to inspect
parts removed from cars to de-
termine whether they were
broken or worn. To conceal evidence from those inspectors,
the documents said, employees
threw such parts as roof liners,
roller bearing adapters and
brake shoes into the harbor.
After getting a tip from an
unidentified whistleblower, divers working for the port police
found those parts on the ocean
floor near the repair facilities.
The dumping described in
the plea agreement occurred in
2008 and 2009. Mark A. Williams, an assistant U.S. attorney
in Los Angeles, said the case
dragged on for years because of
the complexity of the investigation and calculations regarding
restitution to the railcar owners.
Mr. Williams added that the
case was particularly serious
because the improper repair
practices had the potential to
cause railroad accidents.
The plea agreement specifies that United Industries violated federal law by dumping
refuse in navigable waters.
Caterpillar disclosed in November 2013 that it was subject to a criminal investigation
of charges that it made “improper or unnecessary” inspections and repairs of railroad
cars but provided few details.
Greenbrier and XPO Logistics had no immediate comment on the railcar case. TTX
declined to comment. TTX,
which is owned by the major
freight railroads, replaced
Progress as the railcar service
provider at Long Beach and at
other West Coast rail hubs.
JOHANNESBURG—Shares
of Steinhoff International
Holdings NV continued to sink
Thursday after the retail giant
said accounting irregularities
it disclosed the day before, together with its chief executive’s resignation, could affect
the valuation and “recoverability” of as much as €6 billion
($7.09 billion) worth of assets.
The stock, listed in both Johannesburg and Frankfurt, has
declined 78% over two days to
65 European cents. Steinhoff
had a capitalization earlier in
the week of more than $14 billion, making it one of Africa’s
biggest companies.
South Africa’s finance minister, Malusi Gigaba, said
Thursday that the country’s
Financial Services Board has
begun an investigation, while
the Johannesburg Stock Exchange is also probing.
Mr. Gigaba said authorities
are “mindful that many retirement and savings funds may
be adversely affected by the
loss in the value of Steinhoff
shares.” Members of retirement funds “should be reassured that current regulations
limit the extent to which any
one fund may be invested in
any one company,” he said.
Steinhoff also said it was
seeking to raise funds to support current operations and
reduce debt. It said Wednesday that its CEO, Markus
Jooste, had resigned and that
it was probing unspecified ac-
counting irregularities.
The developments come
months after German prosecutors
began
investigating
whether the company used offbalance sheet entities to hide
losses and artificially pump up
its valuation. Steinhoff had previously denied those allegations, but on Wednesday said it
had hired outside accountants
to look into its books.
The company owns retail
brands around the world—including Sleepy’s mattresses in
the U.S. and U.K. discount retailer—and operates chains
across Europe and Australia.
Steinhoff’s dive also pulled
down companies associated
with the retailer and Mr.
Wiese. Shares of separately
listed Steinhoff Africa Retail
Ltd., or STAR, are down 34%
this week, while shares of grocer Shoprite Holdings Ltd.—
Africa’s largest retailer whose
largest shareholder is Mr. Wiese—are 6.7% lower.
On Thursday, Steinhoff said
the company had “given further consideration to the issues
subject to the investigation and
to the validity and recoverability of certain non-South African
assets of the company which
amount to circa €6 billion.”
Steinhoff said it was working to raise fresh funding to finance existing operations and
reduce debt, including potentially the sale of noncore assets “that will release a minimum of €1 billion of liquidity.”
Steinhoff didn’t respond to requests for additional comment.
Off-Price
Steinhoff International’s accounting disclosures this week have
undercut its shares and those of two separate companies associated
with the retailer or its biggest shareholder.
co Fo
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BY ALEXANDRA WEXLER
ly
.
Retail Giant Steinhoff Rattles Investors With Warning
25%
Shoprite
Holdings
0
–25
Steinhoff
Africa Retail
–50
–75
Steinhoff
International
–100
Sept.
Oct.
Nov.
Source: Factset
Dec.
THE WALL STREET JOURNAL.
no
n-
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
TECHNOLOGY
WSJ.com/Tech
CHINA CIRCUIT | By Li Yuan
A commuter rode past a large group of Mobike bicycles in Beijing this year. Tencent is a top investor in the bike-sharing app.
Tencent, created a monopoly
in ride-hailing by first merging with rival Kuaidi, which
was backed by Alibaba, and
then taking over UberChina.
“The ending is as predictable
as Hollywood movies,” Ms.
Zeng said. “They will merge!”
This week, the prospect
for an Ofo-Mobike merger
became more complicated after Ant Financial announced
a two billion yuan ($302 million) investment in Hellobike, a smaller player.
With a new competitor on
the horizon, Ofo and Mobike
will need to raise more funding to defend their user
base. It’s especially tough on
Ofo, which now finds that its
backer Ant is funding a rival.
Alibaba says its investment is meant to encourage
healthy growth of the bikesharing industry. Tencent
didn’t respond to requests to
comment. Mobike says it
sees no value in an acquisition or a merger. Ofo declined to comment.
Alibaba and Tencent dominate their core businesses,
own the biggest online video
sites and have stakes in the
biggest meal-delivery apps.
Critically, the two handle
about 94% of mobile-pay-
ment transactions in China.
What’s really going on
with Ant’s Hellobike investment, according to investors
and industry people, is the
latest evolution in Alibaba
and Tencent’s contest over
mobile payments.
After the news of the Hellobike deal, Tencent founder
Pony Ma took to WeChat,
saying that the bike-sharing
apps “are being used as marketing tools for payment.”
A few hours later, Alibaba
founder Jack Ma told Chinese media that he knows
that Tencent wants the bikesharing companies to merge.
Alibaba won’t do deals “for
the sake of a monopoly or
making a quick profit,” he
was quoted as saying.
Tencent was once an alsoran in the mobile-payment
business, until its proxy war
with Alibaba over ride-hailing. As Tencent-backed Didi
gobbled up competitors, Tencent’s share of the mobilepayment market in China
ballooned from 19% in the
third quarter of 2015 to 40%
two years later, while Alipay’s market share fell from
70% to 54%, said iResearch.
In bike-sharing services,
the dynamics favor Alibaba.
Bike-sharing companies usually require deposits between 100 yuan and 299
yuan ($15 and $45). Alibaba
now wants to do away with
those deposits, taking advantage of Alipay’s Sesame
Credit service. Sesame
Credit mines data on a consumer’s e-commerce activity
to derive a credit score. Ofo
users with high scores won’t
need to pay a bike deposit.
Tencent is behind in offering a similar product. With
its investment in Hellobike,
Ant Financial will have more
users for Sesame Credit.
Startups are getting used
to their role as pawns. Many
see that, if they do well,
they’ll have to choose at
some point whether to take
Tencent’s or Alibaba’s investment. If they don’t, their
competitors will.
“Startups used to have the
chance to grow into skyscrapers,” says a venture investor. “Now they only grow
to be a few stories tall.”
ly
.
from tens of thousands in
mid-2016 to more than 40
million each in October.
Both companies deny they
want to merge, despite good
reasons for doing so. A few
investors have become vocal
about a merger so the two
can stop burning cash.
Wang Gang, an early investor in Ofo, says he is all
for a merger. So is Jenny
Zeng, a Mobike investor. Mr.
Wang and Ms. Zeng saw it
happen previously. He was an
investor in Didi Chuxing
Technology, and she in Uber
Technologies and its China
operation. Didi, backed by
co Fo
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ci on
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China’s
tech world
doesn’t believe in the
story of David
and Goliath.
Startups and investors are
abandoning the dream that a
smarter, nimbler upstart can
topple a gargantuan company. Instead, internet behemoths Alibaba Group Holding and Tencent Holdings,
among the world’s biggest
companies by market value,
use their deep pockets to
swallow startups and guard
against potential disrupters.
Their ability to turn deeprooted David-and-Goliath
gospel in the tech world on
its head was again on display this week in China’s saturated, competitive bikesharing market.
In recent months, speculation has been rife about a
possible merger between the
two leading bike-sharing
apps: Ofo, formally named
Beijing Bikelock Technology, and Mobike, or Beijing
Mobike Technology.
Tencent is a top investor
in Mobike, while Alibaba and
its finance affiliate Ant Financial Services Group back
Ofo. Tencent and Alibaba
have backed the two to access their rapidly increasing
user numbers, in their latest
proxy war to dominate mobile payments.
Ofo and Mobike have each
raised more than $1 billion
since early 2016. They’ve
flooded Chinese cities with
millions of their orange (Mobike) and yellow (Ofo) bikes
while charging as low as 7
cents for a ride. At times,
they’ve given rides away free
of charge. They increased
their monthly active users
KEVIN FRAYER/GETTY IMAGES
Alibaba, Tencent Turn Startups Into Pawns
Follow Li Yuan on Twitter
@LiYuan6 or write to
li.yuan@wsj.com.
Sales of Roche’s cancer drug
Rituxan are down in Europe since
biosimilars launched this year.
500 million Swiss francs
400
300
200
100
0
2016
’17
Note: 1,000 Swiss francs = $1,010
Source: the company
THE WALL STREET JOURNAL.
cluding cancer and arthritis.
To counter all that competition, Roche has bet big on immunotherapy
medicines.
Those include a range of treatments that harness a patient’s
own immune system to target
cancer. The approach doesn’t
work in all patients, but its
success against some hard-totreat cancers makes it one of
the most closely watched areas in cancer pharmaceuticals.
Still, these new drugs come
at a steep price: Tecentriq
costs around $12,500 a month
in the U.S.
Roche is betting its push
into immunotherapies can take
up the slack from an expected
sales downturn as three of its
best-selling cancer drugs face
new competition. Cancer
drugs Herceptin, Avastin and
Rituxan account for more than
$20 billion in annual sales, or
no
Roche Holding AG said
Thursday that its immunotherapy drug Tecentriq slowed the
progression of lung cancer and
helped patients live longer in a
late-stage study, offering hope
for patients and bolstering the
Swiss drugmaker’s defense
against a wave of lower-priced
competition.
Basel-based Roche said patients who received Tecentriq,
in combination with its older
cancer drug Avastin and chemotherapy, showed a 38% reduced risk of their disease
worsening, compared with patients who were given only
Avastin and chemotherapy.
Tecentriq is already approved for patients suffering
from advanced bladder cancer,
but becoming a treatment for
lung cancer would significantly widen its market.
Tecentriq is pivotal to
Roche’s strategy of bringing
new drugs to market to replace older medicines, whose
sales are set to decline as they
lose patent protection and as
rivals launch cheaper, copycat
versions.
The company has in years
past been a global leader in
rolling out blockbuster cancer
drugs, but many of its best
sellers have lost—or soon face
losing—patent protection in
key markets.
They also face new competition in the form of “biosimilar” medicines.
Biosimilars are near-replicas of biologic drugs, which
are made out of living cells
and are typically targeted
against complex diseases, in-
Biosimilars’ Bite
n-
BY NOEMIE BISSERBE
Announcement for Public Bidding
São Paulo State Police Department,
Brazil, announces to the companies
concerned in this area of activity, the
opening
of
INTERNATIONAL
TRADING
SESSIONS
WITH
PRESENTIAL ATTENDANCE, type:
lowest price, to REGISTER PRICE.
Subject: multiband transceiver with
analog modulation and digital,
encrypted,
compatible
with
conventional networks in VHF and
UHF 800 MHz according to the
norms of the standard P25 (APCO
Project 25). The attendance meeting
of the public bidding will take place
on January 10th, 2018, at Avenida
Água Fria, 1.923, Água Fria, (CTel)
São Paulo/SP - Brazil at 09:10 AM.
The official announcement and our
attachments are available to whose
are interested, without charge on the
websites: <www.e-negociospublicos.
com.br> or requesting e-mail:
<cteluge@policiamilitar.sp.gov.br>;
Phone Number: (+55) 11-2990-2900.
Vladimir Goulart de Carvalho Captain Tenders and Contracts
Section’s Chief.
over 40% of the company’s total revenue. Analysts estimate
that the three account for
around 65% of the company’s
annual profit.
But competition from biosimilars has begun eroding
revenue.
Rituxan
sales
dropped by more than 13% in
Europe after it lost patent protection, and rivals launched biosimilar versions of the drug
this year.
Last month, European regulators approved a breast-cancer biosimilar competitor to
Herceptin, made by Samsung
Bioepis Co. Ltd., the South Korean group’s new biotechnology company. Copies of Avastin are also on the way.
Amgen Inc. and Allergan PLC are readying a
biosimilar version, which
could be available in the
U.S. as soon as
2019.
Roche hopes Tecentriq can help it
maintain its leadership and defend its
margins in the increasingly competitive oncology market.
There have been
setbacks. Roche’s
hopes of protecting
its $7 billion breast-cancer
franchise with a new drug
cocktail were dealt a blow in
June after a separate trial
showed the combination was
only slightly better than an
older medicine made by
Roche. In September, Lampalizumab, a drug that Roche
hoped would prevent loss of
vision and be a top seller,
failed a late-stage trial.
Days later, Roche said its
skin-cancer treatment Zelboraf
didn’t reduce the risk of recurrence in patients who had undergone surgery to cut out tumors and had a genetic
mutation called BRAF.
But there has also been
good news. Roche’s multiplesclerosis treatment Ocrevus,
which was approved by the U.S.
Food and Drug Administration
in March, is quickly gaining
traction. It clocked in sales of
500 million Swiss francs ($506
million) through the first nine
months of the year.
Analysts have said they expect Tecentriq, which is being
tested for a wide range of cancers, will rack up annual
sales of around $3.6 billion by 2025. Sales for
lung cancer, one of the
most common and serious types of cancer, should account
for a significant
share of that revenue. The company
hopes to receive
FDA approval as
the first treatment
for lung cancer,
meaning the one
the agency recognizes as the best
treatment.
Tecentriq enters a crowded
market of immunotherapies.
Bavencio, co-developed by
Germany’s Merck KGaA and
Pfizer Inc., and AstraZeneca
PLC’s Imfinzi have showed
mixed results so far. But Bristol-Myers Squibb Co.’s Opdivo
and Merck & Co.’s Keytruda
could prove to be serious contenders, according to preliminary trials.
Visa Wants to Be Seen, and Heard
BY ALEXANDRA BRUELL
Several months ago, 10 Visa
Inc. marketing employees and
agency staffers met to debate
the merits and nuances of
sounds that could represent
the Visa brand.
One of the finalists was
eliminated for sounding “angry,” and a couple elicited “visceral reactions,” recalled Visa’s
marketing chief, Lynne Biggar.
The winner: a less-than-a-second sound that signals “speed
and convenience.”
People will hear the signature sound when they make a
payment through a mobile device or at a cash register. The
company is also launching a
unique vibration and adding
animation to its logo.
The creation and selection
process, which took a little
over a year, involved focus
groups, three specialist agencies and rounds of elimination
to whittle down 200 different
sounds.
The unique tone is part of
Visa’s effort to usher in a new
era of mobile payments.
With fewer people seeing
the company’s logo on cash
registers or using logo-carrying credit cards at checkout,
Visa wants to be heard when
consumers make in-app purchases and use their phones to
make payments in stores.
The sound will be revealed
in an ad campaign featuring
Olympic athletes making payments in a number of ways—
swiping a credit card, tapping
a phone at the checkout, and
completing online mobile purchases.
While sound branding is
hardly new—Ms. Biggar noted
signature sounds from Intel
and NBC—it is gaining importance as consumers increasingly rely on voice assistants
like Amazon’s Alexa and
Google Home. Visa also wanted
a brand presence at the pointof-sale, and not just in TV ads
or other marketing materials.
TESLA/EPA/SHUTTERSTOCK
Roche Drug Shows Added Benefit
Tesla’s electric Semi trucks won’t be available until 2019.
Anheuser-Busch
Orders 40 of Tesla’s
All-Electric Trucks
BY JENNIFER SMITH
Forget the Clydesdales. Anheuser-Busch has reserved 40
of Tesla Inc.’s all-electric Semi
trucks, as the maker of Budweiser seeks to reduce fuel
costs and vehicle emissions.
The U.S. subsidiary of Anheuser-Busch InBev NV plans
to use the trucks for shipments to wholesalers within
150 to 200 miles of its brewery locations—well within the
500-mile range that Tesla
Chief Executive Elon Musk has
promised. The vehicles would
be deployed among the
brewer’s so-called dedicated
fleets of about 750 trucks,
which bear the company’s
branding but are owned and
managed by outside carriers.
One of the largest known
reservations since the Semi
was unveiled last month, Anheuser-Busch’s preorder is still
tiny relative to the broader
heavy-duty-truck
market,
which produces 250,000 to
300,000 big rigs a year.
Anheuser-Busch hasn’t decided whether to buy the vehicles or lease them, said James
Sembrot, the company’s senior
director of logistics strategy.
It could ask one of its dedicated carriers to buy or lease
the trucks. The Semi won’t be
available until 2019. “We put
the reservations down so we
can prioritize our place in
line,” he said. “We don’t know
who the carrier is going to be
in two to three years.”
He declined to discuss the
cost for the reservation, which
he said was made before Tesla
introduced the Semi in California last month. Tesla had set
deposits at $5,000 at the time
of the November announcement but has since raised the
amount to $20,000. Tesla expects the trucks to list for
$150,000 to $200,000; a new
diesel-powered heavy-duty
truck can sell for $150,000.
The Semi tractors are designed to travel as much as
500 miles on a single charge.
Some question whether electric vehicles are a viable option for long-haul trucking,
citing concerns about range
and battery weight.
500
The miles Tesla expects its Semi
trucks to travel on one charge
Still, companies looking to
trim transportation costs are
seeking to test out the Tesla
truck. J.B. Hunt Transport Services Inc. and Wal-Mart Stores
Inc., which each operate thousands of trucks, have reserved
Semis, as has truck-leasing
and fleet-management company Ryder System Inc.
Anheuser-Busch
spends
$120 million on fuel each year
for its dedicated fleets and
long-haul transportation by
for-hire carriers moving beer
between breweries and wholesalers, Mr. Sembrot said. The
company wants to cut its carbon footprint by 30% by 2025,
and has invested in alternative-fuel vehicles, such as leasing delivery trucks that run on
compressed natural gas.
—Brian Baskin
contributed to this article.
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THE WALL STREET JOURNAL.
Friday, December 8, 2017 | B5
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B6 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
BUSINESS NEWS
‘R’ Us
AT&T Fight Flips Political Script Toys
Creditors
Sen. Elizabeth Warren, a Massachusetts Democrat, supports the Justice Department’s lawsuit.
March 19 Is Chosen
As Trial Start Date
The judge presiding over
the Justice Department’s antitrust challenge to AT&T Inc.’s
proposed acquisition of Time
Warner Inc. has set March 19
as the trial’s start date, warning the companies he can’t
reach a decision by the time
their merger agreement expires
on April 22.
“It’s just not realistic to be
done on the 22nd,” U.S. District
Judge Richard Leon said Thursday during a first preliminary
court hearing.
The judge aims to reach a
decision in the case by late
April or May, he said, and he
advised lawyers for the companies to talk to their clients
about extending the merger
agreement. “That would be in
everyone’s interests,” he said.
For a decision of this complexity and magnitude, the
judge said, he will need a significant amount of time after
the trial concludes to formulate
his decision.
At one point, Judge Leon
suggested the companies consider extending their merger
agreement by 60 or 90 days.
The judge estimated the
trial would take three weeks.
The companies had proposed starting the trial on Feb.
20, while the Justice Department sought a start date of
May 7. Judge Leon said he had
two other trials on his calendar
during that period.
After the agreement’s expiration date, either company
could unilaterally terminate the
deal, and Time Warner would
be in line for a $500 million
breakup fee from AT&T.
AT&T said it would talk to
Time Warner about extending
the deal’s deadline.
—Brent Kendall
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
AT&T Inc.’s bid to buy Time
Warner Inc. is blurring some
of the ideological lines that
usually split free-market conservatives from liberal skeptics of big business.
On the left, some Democratic U.S. senators who questioned the deal earlier this
year have avoided addressing
the issue since the Justice Department sued to stop the $85
billion combination. State attorneys general who joined a
similar campaign against
Comcast Corp.’s 2011 takeover
of NBCUniversal have likewise
sat out the latest government
effort to thwart corporate concentration, at least for now.
On the other side, the politically conservative head of the
department’s antitrust division, Makan Delrahim, decided
to move forward with the lawsuit. President Donald Trump
has echoed the agency’s arguments and called the deal “not
good for the country.”
“There is a general unease
overall, at least from the conservative side, that big media
is consolidating with an eye
toward shutting out conservative points of view,” said Rick
Manning, president of the conservative group Americans for
Limited Government.
Mr. Manning said he was
surprised more conservative
activists hadn’t decried the
deal. He said some of them say
privately that they oppose it
but avoid going public with
their concerns for fear of
crossing other members of
their organizations.
“Everybody in Washington
is a bit tangled in knots
around the politics of this
deal,” said Gene Kimmelman,
head of left-leaning consumeradvocacy group Public Knowledge, which co-signed a letter
with Americans for Limited
REYNOLD/EPA/SHUTTERSTOCK
BY DREW FITZGERALD
the government’s lawsuit despite concerns about the man
leading it. “I’m glad that the
Justice Department has filed
suit to stop the AT&T and
Time Warner deal,” she said in
a speech to the Open Markets
Institute, according to prepared remarks. “It’s essential
that the courts and the public
approach this case as they
would any other—based on
the law and the facts, and not
on President Trump’s repeated
efforts to punish his enemies.”
Political differences extend
to the companies themselves.
AT&T Chief Executive Randall
Stephenson has personally donated to candidates of both
parties but more often backs
Republicans. The telecommunications company in August
hosted Rep. Kevin Brady (R.,
Texas) at its Dallas headquarters to discuss efforts to cut
the federal corporate tax rate.
Time Warner CEO Jeff
Bewkes more often donates to
Democratic candidates, according to Federal Election
Commission records. Its CNN
brand is also a frequent target
of criticism from Republicans
aside from Mr. Trump who say
the news organization has a
liberal slant. CNN has defended its coverage as fair.
Liberal groups are hardly
united against the deal, however. The Communications
Workers of America has
backed the transaction, arguing it would give more Time
Warner workers collectivebargaining rights. The union
represents nearly half of
AT&T’s over 250,000 workers.
“A vertical integration like
AT&T and Time Warner would
allow the new company to better compete with platforms
like Google and Facebook,”
CWA President Chris Shelton
wrote last month in a letter to
Democratic attorneys general.
“Upending that merger puts a
company like AT&T under
even more pressure to outsource U.S. jobs or seek benefit concessions in order to
compete with these nonunion
or simply anti-union companies.”
Government and other groups
asking the Justice Department
to block the deal.
Spokesmen for AT&T and
Time Warner declined to comment.
Things weren’t always so
complicated. Several Democratic U.S. senators in June
urged the Justice Department
to look at AT&T’s attempt to
buy the entertainment company, arguing the combination
would stifle competition and
put too much power in the
hands of a wireless, satellite
and media empire.
Other officials who otherwise would support the department’s aggressive challenge
to
corporate
consolidation must also consider lingering questions
about whether the White
House is meddling in the process. Those doubts offer Democrats a potential political
weapon against Mr. Trump.
“You always see lobbying
from companies,” a Democratic Senate staffer said,
though AT&T and Time War-
Clearing out your
surplus stock?
no
n-
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profits with your overstock!
ner “may have a more compelling story to tell” because of
the public concerns about Mr.
Trump’s role in the case.
Sens. Richard Blumenthal,
Sherrod Brown, Ed Markey
and Elizabeth Warren have
cheered the Justice Department’s lawsuit while warning
against any White House interference that could tarnish
the case.
Sen. Warren (D., Mass.),
who held up Mr. Delrahim’s
confirmation for months, said
Wednesday she still supports
BY EMRE PEKER
BRUSSELS—European
Union officials agreed to expand the bloc’s powers to police and fine auto makers,
seeking to prevent a repeat of
the diesel-emissions scandal
that exposed abuses by many
local manufacturers.
Negotiators for EU governments and the European Parliament clinched a deal Thursday after almost two years of
talks, agreeing to allow the
bloc’s executive body—the European Commission—to audit
national regulators. The move
follows failure by EU members
to enforce rules for the auto
industry, as Volkswagen AG
cheated on emissions tests
and other manufacturers produced cars that didn’t comply
with standards.
The deal introduces spot
checks on new vehicles hitting
European roads and empowers
the commission to issue EUwide recalls and fine auto
makers as much as €30,000
($35,394) per noncompliant
‘Dieselgate has
revealed the
weaknesses of our
regulatory…system.’
car. The revamp by Brussels is
part of a broader push to restore the credibility of European auto makers and regulators after U.S. authorities
uncovered a long-running
scheme to trick emissions
Legal Notices
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BY LILLIAN RIZZO
AND SOMA BISWAS
Toys “R” Us Inc.’s unsecured creditors want to take a
deeper look into the troubled
retailer’s hefty and complex
debt load.
In court papers filed Tuesday, the creditors are seeking
permission from Judge Keith
Phillips to obtain more documents related to the numerous
debt transactions that took
place in the years leading up
to the company’s September
bankruptcy filing, including
several transfers of intercompany notes, its 2005 leveraged
buyout and fees paid to its private-equity backers.
At the time of its filing,
Toys “R” Us had $5.3 billion in
debt, unchanged from when it
was taken private by privateequity firms Bain Capital LLC
and KKR & Co. and real-estate
investment trust Vornado Realty Trust in a $6.6 billion
deal.
The company has consented
to allow the investigation to
move forward, according to
court papers.
The creditors are investigating whether any transactions could be cause for any
claims against the company,
court papers show.
Between 2013 and 2017,
Toys “R” Us went through a
number of intercompany debt
transactions, including several
2016 transactions in which the
company created at least five
new entities, transferring equity interests from one to the
other and issuing nearly $583
million of new debt.
The creditors also said in
court papers they planned to
investigate the many fees Toys
“R” Us paid to its private-equity owners.
A Toys “R” Us representative declined to comment on
the matter.
EU Tightens Checks on Autos
ADVERTISEMENT
New York City businesses send 3.3 million tons of garbage to
landfill every year—but much of it can be reused.
Seek Look
Into Debt
ly
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Conservatives show
‘unease’ as the offer
for Time Warner puts
Washington in knots
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NOTICES
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All Rights Reserved.
tests in order to sell diesel
cars that failed to meet environmental standards.
Last month, the EU mandated a 30% cut in carbon-dioxide emissions from cars and
vans in the decade through
2030. The move aims to force
a transition by European motor companies into electric
and hybrid vehicles, a market
Chinese and U.S. competitors
dominate.
“Dieselgate has revealed the
weaknesses of our regulatory
and market-surveillance system,”
said
Elżbieta
Bieńkowska, the EU’s internal
market and industry commissioner. “We know that some
car manufacturers were cheating and many others were exploiting loopholes. To put an
end to this, we are overhauling the whole system.”
Under the new system, the
commission every five years
will assess national regulators
that approve new car models.
The EU executive and the
bloc’s members will also regularly audit technical services
that run the tests on prototype vehicles.
However, member countries, led by Germany, resisted
a proposal to empower the
commission to suspend services with poor performance
records. “They thought this
would be an overreaction that
would create additional burdens and would not necessarily improve the system,” an EU
official said.
Each year, EU members will
have to run various tests on
one in every 40,000 new vehicles sold in their country and
check the emissions performance of at least 20% of those
autos. Countries with low
new-vehicle registrations will
have to run checkups on at
least five autos.
The compromise on monitoring new vehicles fell well
short of the European Parliament’s initial proposal, as well
as calls by environmentalist
and consumer groups. Still,
policy makers and advocacy
groups said more robust surveillance would help reverse
years of national-level inaction
throughout the EU.
The deal is expected to be
approved by EU governments
and the European Parliament.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24211.48 s 70.57, or 0.29%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.32 21.40
P/E estimate *
19.82 18.02
Dividend yield
2.17
2.45
All-time high 24290.05, 12/04/17
Nasdaq Composite Index
Last
2636.98 s 7.71, or 0.29%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.94 24.22
P/E estimate *
19.72 18.41
Dividend yield
1.90
2.12
All-time high: 2647.58, 11/30/17
Last Year ago
6812.84 s 36.47, or 0.54%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.25
23.45
P/E estimate *
21.01
18.96
Dividend yield
1.07
1.25
All-time high: 6912.36, 11/28/17
Current divisor 0.14523396877348
24600
2640
6900
24000
2600
6750
23400
2560
6600
22800
2520
6450
22200
2480
6300
2440
6150
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
65-day moving average
21600
Bars measure the point change from session's open
Oct.
Nov.
6000
2400
21000
Sept.
Sept.
Dec.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
3-yr. ann.
YTD
% chg
Dow Jones
Industrial Average
24262.88 24101.24 24211.48
0.29
70.57
1.31
Transportation Avg 10380.21 10205.90 10361.39 133.58
2.05
0.27
27334.18 27169.22 27295.05 103.24
703.68
697.48
4.85
702.59
0.38
Total Stock Market
Barron's 400
748.30
Nasdaq Stock Market
Nasdaq Composite
6829.29
Nasdaq 100
6333.29
Standard & Poor's
500 Index
755.18
6778.20
6290.65
2640.99
2636.98
7.71
MidCap 400
SmallCap 600
1887.13
932.42
1869.98
923.02
1883.50
928.53
12.40
5.19
Other Indexes
Russell 2000
1524.00
1508.15
1520.47
11.59
12581.43 12512.03 12568.98
36.55
NYSE Composite
555.06
550.98
553.96
2.92
4194.17
4102.74
4181.77
69.43
Value Line
NYSE Arca Biotech
NYSE Arca Pharma
534.91
531.58
533.94
-0.03
KBW Bank
106.33
104.69
105.96
0.61
76.88
75.65
76.46
0.04
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
Cboe Volatility
133.09
131.69
132.65
1248.44
11.32
1236.63
10.12
1244.52
10.16
0.55
22.5
8783.74
10.0
14.6
4.2
774.47
640.75
17.9
14.5
8.2
27433.82 23276.73
708.56
600.24
16.5
15.0
17.3
16.8
8.2
9.1
6912.36
6422.56
0.29
2647.58
0.66
1899.18
944.10
0.56
5383.12
4859.19
26.6
29.9
25.8
30.0
2238.83
1660.58
815.62
10.5
17.4
17.8
11.0
8.6
13.4
10.8
12.5
13.6
8.3
9.3
10.8
Volume, Advancers, Decliners
0.77
0.29
0.53
1.69
Most-active issues in late trading
Company
Volume
(000)
Symbol
CenturyLink
CTL
30,270.8
Last
Net chg
After Hours
% chg
High
14.15
0.05
0.35
Close
14.01
SPDR S&P 500
SPY
9,928.0 264.34
0.27
0.10 264.37 263.24
Intel
INTC
6,594.8
43.16
0.08
0.19
43.29
42.95
Wells Fargo
WFC
5,044.5
59.45
0.09
0.15
59.86
59.30
iShares Russell 2000 ETF IWM
4,584.0 151.56
0.29
0.19 151.56 151.20
BAC
Bank of America
Coca-Cola European Ptrs CCE
3,995.8
28.85
0.07
0.24
28.86
28.72
3,905.8
39.32
...
unch.
39.32
39.31
Microsoft
3,841.3
82.54
0.05
0.06
82.54
82.39
4.80
MSFT
Percentage gainers…
1544.14
1345.24
12634.89 11056.89
9.7
12.0
8.7
Sigma Designs
SIGM
33.5
6.75
1.15
20.54
6.90
Diana Containerships
DCIX
22.8
6.45
0.43
7.14
6.51
6.00
Forescout Technologies FSCT
6.6
24.60
1.63
7.10
25.00
22.97
12.7
13.7
4.6
559.05
503.24
6.9
9.4
3.5
4304.77
3075.02
33.2
36.0
6.6
VSTM
Verastem
Science Applications Intl SAIC
11.2
4.20
0.23
5.79
4.25
4.03
30.6
78.98
3.55
4.71
79.77
75.34
587.5
12.68
-2.25
-15.07
14.93
12.00
29.8 231.00
-7.80
-3.27 239.35 230.60
560.52
463.83
15.1
10.9
-1.2
...And losers
106.84
88.02
14.0
15.4
12.4
American Outdoor Brands AOBC
0.05
96.72
73.03
-7.4
-3.0
2.9
Cooper Cos
COO
117.79
-29.4
-27.8 -14.3
Corning Inc
GLW
31.13
-0.60
-1.89
37.3
-27.6
PPG Industries
PPG
11.0 114.00
-2.11
-1.82 116.11 114.00
Delphi Technologies
DLPH
61.1
-0.91
-1.72
0.41
192.66
0.99
1341.69
16.04
885.46 38.9
9.14 -19.6
21.0
-4.9
353.4
2997.94
387.80
257.75
The Global Dow
DJ Global Index
DJ Global ex U.S.
Percentage Gainers...
Latest
% chg
Net chg
DJ Americas
631.99
Sao Paulo Bovespa 72487.46
S&P/TSX Comp
16015.68
S&P/BMV IPC
46987.01
Santiago IPSA
3704.57
0.28
1.79
–780.90 –1.07
0.67
106.90
0.03
13.71
–0.02
–0.73
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5977.70
Shanghai Composite 3272.05
Hang Seng
28303.19
S&P BSE Sensex
32949.21
Nikkei Stock Avg
22498.03
Straits Times
3388.14
Kospi
2461.98
Weighted
10355.76
0.09
1.10
14.98
9.51
46.30
–0.19
–2.73
152.23
1.74
–11.87 –1.05
78.60
1.47
–39.42 –0.42
–27.28 –0.37
32.00
–21.91
78.39
352.03
320.99
–9.07
–12.39
–38.16
0.02
0.28
0.38
0.18
0.36
0.68
0.32
0.77
0.26
0.54
–0.67
no
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
YTD
% chg
0.09
0.23
0.11
2.70
0.90
0.29
386.41
389.77
3994.73
5383.86
13045.15
1445.68
22459.51
544.51
1119.51
10262.60
572.85
9270.57
7320.75
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
52.00
18.4
18.9
20.5
17.0
20.4
4.8
2.9
14.9
6.9
11.3
10.8
10.7
13.6
–1.7
16.8
12.7
–2.8
9.7
7.2
12.8
2.5
0.28
1.08
1.45
–0.27
–0.50
–0.37
5.5
5.4
28.6
23.7
17.7
17.6
21.5
11.9
Company
Symbol
Sage Therapeutics
Entellus Medical
Marinus Pharmaceuticals
Digital Power
Viking Therapeutics
SAGE
SeaChange Intl
eGain Corp.
LM Funding America
Tel Instrument Elec
At Home Group
SEAC
31.90
31.13
53.35
52.00
Greif A
Greif B
Foresight Autonomous ADR
Nuverra Envtl Solutions
Quanterix
GEF
High
52-Week
Low
% chg
U.S. consumer rates
Selected rates
A consumer rate against its
benchmark over the past year
New car loan
169.58 44.55
24.13 11.47
8.90 0.82
5.10 0.40
3.80 0.88
203.0
25.1
819.1
390.4
233.3
Argan
Astrotech
Duluth Holdings Cl B
LendingClub
VelocityShares 3x Lg Nat
AGX
3.46
4.65
3.83
2.50
29.36
0.66
0.85
0.69
0.40
4.66
23.57
22.37
21.97
19.05
18.87
3.65 2.16
4.70 1.30
6.65 1.11
6.25 2.10
30.00 13.30
31.6
116.3
-18.3
-47.9
107.5
IDT Corp B
21Vianet Group ADR
Ameri Holdings
PPDAI Group ADR
ReTo Eco-Solutions
IDT
64.87 10.04
69.15 10.65
4.13 0.59
14.75 2.09
17.47 2.47
18.31
18.21
16.67
16.51
16.47
64.99 50.70
74.35 54.70
11.70 3.54
21.00 9.25
...
...
18.5
-3.8
...
...
...
OptimumBank Holdings
Hooker Furniture
ProSh Ult Bloombg Nat Gas
Methode Electronics
Xplore Technologies
OPHC
LMFA
TIK
HOME
GEF.B
FRSX
NES
QTRX
Most Active Stocks
Company
Symbol
Bank of America
VelocityShares 3x Lg Nat
iShares MSCI Emg Markets
SPDR S&P 500
Finl Select Sector SPDR
BAC
General Electric
LendingClub
Micron Technology
TOP Ships
Digital Power
GE
UGAZ
EEM
SPY
XLF
LC
MU
TOPS
DPW
Volume % chg from Latest Session
(000) 65-day avg Close % chg
28.78 0.49
6.39 -14.80
45.41 0.29
264.07 0.32
27.84 0.32
52-Week
High
Low
76,659
76,298
68,171
67,175
58,190
10.8
240.2
33.6
3.2
1.9
53,633
47,855
42,826
38,100
36,782
-27.6 17.71 0.28
32.38
561.4 3.59 -15.53
6.79
13.7 43.20 3.90
49.89
307.1 0.43 15.14 89100.00
764.0 3.41 24.45
5.10
29.31 21.77
52.49
6.26
47.93 33.94
266.80 222.73
28.20 22.00
17.46
3.29
19.49
0.32
0.40
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
t
Prime rate
3.50
t
2.50
2.00
D J F MAM J J A S O N D
2017
2.24%
800-578-4270
TrustCo Bank
Orlando, FL
2.37%
407-422-7129
De Witt Savings Bank
Clinton, IL
2.45%
217-935-6342
Broadway National Bank
San Antonio, TX
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
2.50%
210-283-6500
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
3.00
Thursday
t
10%
0
1.50
One year ago
0.75
–5
1 2 3 5 710
years
maturity
Euro
5
2.25
0.00
1
3 6
month(s)
s
Yen
–10
s
WSJ Dollar index
–15
30
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.49
1.54
Money market, annual yield
0.33
0.34
Five-year CD, annual yield
1.49
1.49
30-year mortgage, fixed†
3.90
3.87
15-year mortgage, fixed†
3.31
3.30
Jumbo mortgages, $424,100-plus† 4.28
4.28
Five-year adj mortgage (ARM)† 3.67
3.75
New-car loan, 48-month
3.17
3.21
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.95 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.25
4.25
1.54
0.36
1.49
4.33
3.50
4.88
4.03
3.36
1.00
1.00
1.30
-0.09
-0.08
-0.13
0.04
-0.22
0.09
0.05
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1461.630
2.217
2.233
2.237
1.818
2.688 1.920
10-yr Treasury, Ryan ALM 1732.379
DJ Corporate
380.523
Aggregate, Barclays Capital 1942.640
High Yield 100, Merrill Lynch 2854.134
Fixed-Rate MBS, Barclays 1988.570
Muni Master, Merrill
524.000
2.374
3.142
2.690
5.602
2.870
2.071
2.417
3.170
2.710
5.552
2.940
2.275
2.609
3.390
2.790
5.890
3.120
2.419
2.058
2.879
2.380
4.948
2.660
1.736
2.427
5.956
3.311
6.965
2.291
5.162
804.645
5.557
5.573
6.221
5.279
9.546 6.095
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.679
3.998
2.390
4.378
2.019
2.756
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
DLTH
LC
UGAZ
VNET
AMRH
PPDF
RETO
HOFT
BOIL
MEI
XPLR
Latest Session
Close Net chg % chg
High
52-Week
Low
% chg
44.15 -13.35 -23.22
3.94 -0.95 -19.43
16.01 -3.28 -16.99
3.59 -0.66 -15.53
6.39 -1.11 -14.80
76.70 44.00
9.00 2.24
37.49 16.00
6.79 3.29
52.49 6.26
-37.2
-49.8
-56.8
-36.2
-86.5
10.96
6.02
2.50
7.16
7.46
-1.63
-0.87
-0.32
-0.90
-0.88
-12.95
-12.63
-11.34
-11.17
-10.50
22.78 10.48
8.52 4.17
9.00 2.15
14.63 6.88
12.75 6.60
-46.2
-25.1
-61.6
...
...
4.56
46.70
5.97
41.40
2.64
-0.52 -10.24
-5.10 -9.85
-0.65 -9.82
-4.10 -9.01
-0.25 -8.65
13.96 1.85
52.75 29.75
20.34 5.89
48.44 36.05
4.20 1.54
23.6
45.3
-68.6
-2.7
15.8
Ranked by change from 65-day average*
Company
Symbol
Entellus Medical
Matlin Ptrs Acqn Cl A
Limbach Holdings
Gores Holdings II Cl A
First Trust CEF Incm Opp
ENTL
Argan
Duluth Holdings Cl B
Franklin FTSE Japan Hdg
Davis Select Worldwide
Natl Storage Affiliates
AGX
Country/currency
MPAC
LMB
GSHT
FCEF
DLTH
FLJH
DWLD
NSA
Volume % chg from Latest Session
(000) 65-day avg Close % chg
9,491
2,120
530
1,239
179
7125
4534
3989
2296
2243
23.99
9.70
13.82
9.90
21.79
2,358
3,050
203
571
4,443
1509
1364
1277
1273
1271
44.15 -23.22
16.01 -16.99
25.86 -0.60
25.30 0.66
25.51 -4.24
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
49.84
-0.31
0.99
0.10
0.11
52-Week
High
Low
24.13 11.47
10.02 9.65
15.22 11.14
11.24 9.30
23.93 19.75
76.70
37.49
26.39
25.83
26.93
44.00
16.00
25.23
20.00
20.31
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0579 17.2750 8.9
Brazil real
.3039 3.2906 1.1
Canada dollar
.7780 1.2854 –4.4
Chile peso
.001526 655.30 –2.2
Ecuador US dollar
1
1 unch
Mexico peso
.0527 18.9696 –8.5
Uruguay peso
.03447 29.0100 –1.2
Venezuela b. fuerte .095421 10.4799 4.9
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
Asia-Pacific
Australian dollar
.7512 1.3312
China yuan
.1511 6.6194
Hong Kong dollar
.1281 7.8070
India rupee
.01549 64.554
Indonesia rupiah .0000738 13557
Japan yen
.008843 113.08
Kazakhstan tenge .002989 334.55
Macau pataca
.1242 8.0485
Malaysia ringgit
.2454 4.0754
New Zealand dollar
.6833 1.4635
Pakistan rupee
.00949 105.415
Philippines peso
.0197 50.639
Singapore dollar
.7398 1.3517
South Korea won .0009144 1093.60
Sri Lanka rupee
.0065193 153.39
Taiwan dollar
.03331 30.025
Thailand baht
.03066 32.620
Vietnam dong
.00004403 22713
Commodities
–4.1
–4.7
0.7
–5.0
0.2
–3.4
0.3
1.7
–9.2
1.3
1.0
2.1
–6.6
–9.5
3.3
–7.5
–8.9
–0.3
.04603 21.727 –15.4
.1582 6.3217 –10.6
1.1774 .8494 –10.7
.003738 267.50 –9.1
.009557 104.63 –7.4
.1203 8.3159 –3.8
.2798 3.5743 –14.6
.01690 59.173 –3.4
.1178 8.4856 –6.8
1.0059 .9941 –2.4
.2589 3.8631 9.6
.0368 27.1480 0.2
1.3475 .7421 –8.4
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6520 .3771 –0.03
.0562 17.8010 –1.8
.2843 3.5168 –8.6
3.3109 .3020 –1.2
2.5974 .3850 0.01
.2746 3.641 0.02
.2666 3.7504 –0.01
.0728 13.7355 0.3
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.19
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
0.25 0.29 –6.19
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Thursday
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
* 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.
U.S.-dollar foreign-exchange rates in late New York trading
Forex Race
3.75%
t
3.00
New car loan
UniBank for Savings
Whitinsville, MA
NYSE Arca
Currencies
s
4.00%
Nasdaq
Total volume*1,894,845,278 235,148,300
Adv. volume*1,338,363,150 142,641,702
Decl. volume* 530,015,889 91,840,009
Issues traded
3,089
1,326
Advances
1,865
826
Declines
1,065
470
Unchanged
159
30
New highs
76
11
New lows
66
29
Closing tick
91
19
Closing Arms†
0.69
1.17
Block trades*
6,878
1,330
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.21%
ASTC
Volume Movers
notes and bonds
Bankrate.com avg†:
Symbol
70.04
49.84
39.58
24.45
23.75
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
156.27 64.37
23.99 7.98
MRNS
8.64 2.45
DPW
3.41 0.67
VKTX
3.70 0.71
ENTL
EGAN
Total volume* 822,550,897 16,414,200
Adv. volume* 524,595,198 10,710,858
Decl. volume* 279,897,454 5,331,749
Issues traded
3,084
329
Advances
1,848
145
Declines
1,097
159
Unchanged
139
25
New highs
80
2
New lows
48
12
Closing tick
301
17
Closing Arms†
0.90
0.44
Block trades*
6,534
147
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
14.16
0.58
-0.005
n-
Region/Country Index
Interest rate
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
0.37
12.25
-0.86 -7.80
Philadelphia Stock Exchange
World
0.54
36.47
23.22
6812.84
6316.28
2626.53
0.69
23.4
10368.58
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.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
755.20
Utility Average
24290.05 19614.81
Late Trading
ly
.
Major U.S. Stock-Market Indexes
593.84
-1.86
184.47
56.69
2.763
1249.80
-0.25
0.73
-0.159
-13.00
-0.31
616.58
532.01
-0.14 195.14
58.95
1.30
3.93
-5.44
-1.03 1346.00
166.50
42.53
2.56
1127.80
% Chg
4.69
YTD
% chg
4.69
-3.63 -4.18
5.53
11.51
-25.22 -25.81
8.68
6.84
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B8 | Friday, December 8, 2017
COMMODITIES
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
2.9510
2.9680
2.9290
2.9405 0.0040
Dec
March'18 2.9640 2.9960
2.9515
2.9645 0.0030
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1262.30 1262.40
1243.90 1249.80 –13.00
Feb'18
1265.20 1266.80
1245.80 1253.10 –13.00
April
1269.80 1271.00
1250.40 1257.50 –13.00
June
1273.60 1274.80
1254.70 1261.80 –13.10
Aug
1275.50 1275.50
1259.70 1266.30 –13.10
Dec
1286.00 1286.00
1267.90 1275.10 –13.20
Palladium (NYM) - 50 troy oz.; $ per troy oz.
1004.95 1021.00
1004.95 1016.30 14.75
Dec
Jan'18
…
… s
… 1013.75 14.75
March
987.25 1011.90
985.00 1002.95 16.00
June
979.00 1003.90
979.00
994.20 14.85
Platinum (NYM)-50 troy oz.; $ per troy oz.
915.40
915.40
915.40
893.60 –8.30
Dec
Jan'18
901.40
904.00
t 891.50
894.50 –8.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
15.880
15.885
15.600
15.715 –0.153
Dec
March'18 15.970 16.005
15.660
15.802 –0.153
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
56.00
56.78
55.82
56.69
0.73
Jan
Feb
56.09
56.83
55.88
56.75
0.72
March
56.11
56.86
55.93
56.76
0.71
April
56.16
56.86
55.96
56.76
0.69
June
55.96
56.62
55.77
56.52
0.66
Dec
54.50
55.13
54.37
55.06
0.61
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8644
1.8994
1.8597
1.8970 .0357
Jan
Feb
1.8620
1.8995
1.8615
1.8971 .0335
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.6667
1.7026
1.6620
1.7000 .0391
Jan
Feb
1.6816
1.7167
1.6808
1.7148 .0349
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.910
2.922
t
2.747
2.763 –.159
Jan
Feb
2.909
2.924
t
2.769
2.782 –.142
March
2.882
2.895
t
2.750
2.761 –.137
April
2.796
2.802
t
2.701
2.705 –.099
May
2.798
2.802
2.710
2.713 –.091
Oct
2.878
2.878
2.801
2.807 –.077
Contract
High hilo
Low
Settle
Open
interest
Chg
Agriculture Futures
Open
interest
Corn (CBT)-5,000 bu.; cents per bu.
Dec
339.00
340.00
337.50
338.75
–.50
3,179
March'18 352.25 353.50
350.50
351.50 –1.25 850,824
Oats (CBT)-5,000 bu.; cents per bu.
March
249.50
249.50
242.75
245.00 –2.75
5,671
May
253.50
253.75
249.50
251.75 –2.50
1,063
Soybeans (CBT)-5,000 bu.; cents per bu.
Jan
1003.50 1006.50
988.25
992.00 –10.75 271,116
March
1015.00 1018.25
1000.25 1004.25 –10.50 210,239
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
340.90
340.90
333.30
333.50 –6.90
1,595
Jan'18
342.50
342.70
334.60
335.20 –7.10 141,244
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
33.10
33.26
32.81
33.25
.16
756
Jan'18
33.19
33.39
32.80
33.33
.16 150,888
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Jan
1215.00 1219.00
1212.00 1213.00 –5.50
6,497
March
1245.00 1248.50
1242.00 1243.00 –5.50
3,416
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
396.25
397.25
t 394.00
394.25 –4.25
165
March'18 425.25 425.75
t 419.50
421.50 –3.75 298,278
Wheat (KC)-5,000 bu.; cents per bu.
Dec
403.00
403.25
t 403.00
403.00 –3.00
33
March'18 424.00 425.00 s
418.50
420.75 –2.75 208,010
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
598.75
598.75
598.75
598.75 –5.00
89
March'18 614.00 616.25
610.00
611.00 –2.75 45,118
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Jan
146.025 146.675
144.900 146.325
.300 22,982
March
144.125 144.675
143.050 144.500
.400 17,991
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Dec
115.925 116.375
115.475 115.625 –.275 15,320
Feb'18
119.275 119.875
118.425 118.675 –.600 144,456
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
63.975
64.300
63.500
63.575 –.250 16,601
Feb'18
68.775
69.300
68.150
68.475 –.475 101,143
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Jan
423.60
429.50
423.60
425.90
1.50
4,513
March
412.90
418.80
412.50
415.50
1.50
1,495
Milk (CME)-200,000 lbs., cents per lb.
Dec
15.39
15.55
15.38
15.51
.09
4,242
Jan'18
14.23
14.42
t
14.15
14.39
.15
3,934
3,458
148,878
2,383
358,052
27,189
37,727
10,668
14,912
58
32
32,525
936
3
63,623
877
155,640
483,234
277,082
306,499
163,206
240,067
266,115
124,327
72,598
135,391
73,396
390,096
172,673
229,056
144,732
120,184
84,542
Cash Prices | WSJ.com/commodities
Thursday, December 07, 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.
Thursday
Thursday
15.9100
11866
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
0.9748
1.0170
2.810
2.780
3.950
2.420
2.560
2.310
2.700
59.850
12.100
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
Other metals
LBMA Platinum Price PM
*907.0
Platinum,Engelhard industrial
903.0
Platinum,Engelhard fabricated
1030.0
Palladium,Engelhard industrial
1018.0
Palladium,Engelhard fabricated
1118.0
Aluminum, LME, $ per metric ton
*2028.5
Copper,Comex spot
2.9405
Iron Ore, 62% Fe CFR China-s
66.4
Shredded Scrap, US Midwest-s,w
276
Steel, HRC USA, FOB Midwest Mill-s
631
Metals
Fibers and Textiles
Gold, per troy oz
1256.28
1350.50
1255.00
1393.05
*1268.55
*1263.70
1301.04
1313.55
1313.55
1516.33
1229.23
1313.55
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
15.8300
18.9960
15.7550
19.6940
£11.9400
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
330.20
9.5700
7.3350
4.2600
3.8375
5.1825
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
186.75
165.95
0.8590
2.2375
161.00
147.00
69.75
n.a.
1.2320
1.4393
1.7650
15.65
0.72
63.69
n.a.
0.8323
117.00
165.75
Settle
Chg
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
1,863
1,863
1,863
1,885
March'18
1,910
1,931
1,868
1,880
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
126.00
126.10
125.00
120.85
March'18 126.20 126.40
t 122.10
122.90
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.52
14.59
14.19
14.31
May
14.51
14.55
14.13
14.24
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March
26.66
26.66
26.66
26.95
May
27.23
27.23
27.23
27.23
Cotton (ICE-US)-50,000 lbs.; cents per lb.
March
72.84
74.27
72.10
74.23
May
73.48
74.71
72.78
74.64
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Jan
156.05
156.30
152.40
153.45
March
156.50
156.55
152.90
153.85
Open
interest
–26
101
–26 133,405
–4.00
487
–3.20 114,612
–.14 378,544
–.22 145,535
.29
.09
2,770
2,258
0.6125
0.7348
*82.95
72.500
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
Grains and Feeds
4.85
103
3.2050
96.3
476.4
233
92
213
2.6200
392.00
25.00
8.0625
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
Fats and Oils
34.7500
0.2300
0.3800
0.3233
0.2650
0.3300
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 12/6
Source: WSJ Market Data Group
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
December 7, 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.
Week
Latest ago
Inflation
Chg From (%)
Sept. '17 Oct. '16
2.0
1.8
Latest
Week
ago
Prime rates
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
1.75
Federal funds
1.75
1.00
Effective rate 1.1700 1.1100 1.2000 0.4200
High
1.3125 1.3125 1.3125 0.5625
Low
Bid
Offer
0.00
0.50
0.25
1.50
1.0500 1.0000 1.1600 0.2500
1.1700 1.1800 1.1900 0.4200
Treasury bill auction
1.51 170,206
1.25 42,481
–4.25
–4.10
6,448
3,098
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Dec
154-310 155-170
154-000 153-310 –1-06.0 22,198
March'18 153-280 154-140
152-270 152-280 –1-06.0 755,040
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-215 124-275
124-165 124-165 –10.0 100,652
March'18 124-170 124-205
124-085 124-090 –10.0 3,201,686
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-205 116-230
116-185 116-185
–3.0 72,035
March'18 116-130 116-157
116-107 116-110
–3.0 2,913,201
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-107 107-112
107-105 107-107
–.2 41,642
March'18 107-050 107-057
107-045 107-047
–.5 1,705,847
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.708
98.710
98.708
98.708
… 120,884
Jan'18
98.600
98.605
t 98.600
98.605
… 342,405
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
100.844 101.094
100.750 100.703 –.359 20,687
March'18 98.375 98.547
98.172
98.172 –.359
6,297
1 Month Libor (CME)-$3,000,000; pts of 100%
Dec
98.5225 98.5225
98.5225 98.5100 –.0175
2,463
Jan'18
98.5000 98.5000
t 98.5000 98.5075 .0050
2,176
Eurodollar (CME)-$1,000,000; pts of 100%
Dec
98.4225 98.4250
98.4125 98.4150 –.0100 1,652,587
March'18 98.2450 98.2500
98.2400 98.2400 –.0050 1,547,055
June
98.0950 98.1050
98.0850 98.0900 –.0100 1,341,854
Dec
97.9200 97.9350
97.9100 97.9150 –.0150 1,606,076
Currency Futures
Dec
March'18
.8911
.8959
.8915
.8962
.8841
.8890
.8843 –.0066 201,204
.8891 –.0065 34,569
Dec
March'18
.7818
.7829
.7822
.7833
.7772
.7783
.7776 –.0038 139,741
.7786 –.0038
6,968
Dec
March'18
1.3382
1.3427
1.3490
1.3535
1.3323
1.3371
1.3471
1.3518
Dec
March'18
1.0111
1.0191
1.0135
1.0210
1.0059
1.0134
1.0062 –.0043
1.0137 –.0043
.7561
.7563
.7547
.7557
.7536
.7569
.7565
.7564
.7565
.7562
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
AMLP
XLY
XLP
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
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
10.40
96.79
56.44
68.65
27.84
99.89
82.09
74.37
109.39
104.65
122.47
65.16
54.86
61.85
265.85
188.30
76.30
60.46
109.23
98.39
72.41
52.63
11.99
121.13
87.26
115.51
106.56
71.20
69.47
63.04
45.41
43.48
59.32
104.05
111.14
133.19
146.95
122.80
183.98
151.27
125.86
156.42
206.22
88.22
214.93
151.46
112.71
38.54
113.74
1.96 –17.5
0.26 18.9
9.1
–0.97
0.29 –8.9
0.32 19.7
0.45 15.3
0.02 19.1
0.92 19.5
1.1
–0.02
0.02 –0.3
–0.09 –0.0
0.23 21.5
0.07 29.2
0.29 22.5
0.30 18.2
0.70 13.9
0.50 11.0
0.37 17.9
1.1
–0.13
0.38 11.1
0.12 18.3
0.10 16.4
8.2
–1.32
3.4
–0.20
0.8
0.05
4.8
–0.21
0.2
–0.07
0.27 20.3
0.26 20.3
0.56 26.5
0.29 29.7
0.39 25.7
0.64 21.4
1.43 17.6
2.7
–0.09
0.48 27.0
0.34 18.1
9.6
0.24
1.10 19.5
0.70 12.2
5.8
0.39
0.38 17.6
0.68 15.3
9.7
0.58
0.76 18.0
0.42 24.4
0.18 11.2
3.6
0.21
0.5
–0.13
26 weeks
1.450 1.435 1.450 0.590
One month
Three month
Six month
One year
83.97
105.99
126.68
119.45
101.67
154.02
47.88
23.06
36.74
118.49
34.07
63.84
63.08
242.36
343.07
264.07
96.20
63.30
55.69
21.58
163.48
132.09
158.65
100.60
44.12
43.64
58.08
69.96
53.51
139.29
152.90
84.85
84.17
87.53
121.27
153.11
110.08
83.60
242.57
79.26
79.50
146.49
81.65
55.16
55.64
135.77
73.06
105.02
64.52
58.12
31.79
0.01
–0.18
–0.78
0.83
...
0.34
...
0.04
0.08
–1.32
0.32
0.39
0.37
0.31
0.65
0.32
0.21
0.62
0.18
–0.51
0.72
0.66
0.96
0.14
0.30
0.14
0.28
0.29
0.21
0.47
0.26
0.08
–0.11
–0.13
0.32
0.70
0.58
0.25
0.33
0.03
0.04
0.81
–0.13
–0.07
0.25
0.40
0.32
0.19
0.33
1.22
0.57
–0.6
1.1
6.3
22.7
0.3
30.0
15.2
–1.3
0.8
8.1
23.1
17.8
18.4
22.7
13.7
18.1
12.4
30.9
14.7
3.2
34.6
9.2
19.2
18.1
20.7
22.0
21.2
17.9
21.1
24.9
20.6
12.0
1.3
2.1
18.5
16.3
13.3
1.3
18.1
–0.2
0.2
13.6
1.1
1.6
21.3
17.7
19.8
12.9
12.4
17.3
13.3
1.33
1.41
90 days
Libor
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
3.00
2.25
Dec
Jan'18
Feb
March
June
1.43185
1.53606
1.72250
1.99731
1.37188
1.48738
1.66800
1.95169
1.43
1.43185
1.53606
1.72250
1.99731
0.69
0.66389
0.95306
1.29322
1.64456
Euro Libor
-0.403
-0.379
-0.314
-0.256
One month
Three month
Six month
One year
-0.402
-0.382
-0.318
-0.252
-0.376
-0.329
-0.220
-0.083
-0.405
-0.383
-0.322
-0.259
Euro interbank offered rate (Euribor)
-0.366
-0.325
-0.271
-0.190
One month
Three month
Six month
One year
Latest
-0.371
-0.329
-0.272
-0.188
Value
Traded
-0.366
-0.313
-0.216
-0.078
-0.375
-0.332
-0.276
-0.192
52-Week
High
Low
DTCC GCF Repo Index
1.142
1.168
Treasury
MBS
30.000 1.366 0.264
93.450 1.506 0.284
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Dec
Treasury Jan
Treasury Feb
98.670 unch. 2490 1.330
98.565 0.005 1286 1.435
98.555 -0.010 577 1.445
Weekly survey
Latest
Week ago Year ago
Freddie Mac
30-year fixed
15-year fixed
Five-year ARM
3.94
3.36
3.35
3.90
3.30
3.32
4.13
3.36
3.17
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;
Tullett Prebon Information, Ltd.
.7503
.7505
.7504
.7501
.7526
t
t
.7505
.7505
.7503
.7502
.7501
Mexican Peso (CME)-MXN 500,000; $ per MXN
.05290
.05294
Dec
March'18 .05212 .05214
Euro (CME)-€125,000; $ per €
1.1809
1.1821
Dec
March'18 1.1885 1.1895
75,119
6,791
–.0055 133,068
–.0055
1,134
–.0055
829
–.0055
5,550
–.0055
262
.05258
.05181
.05269 –.00020 173,649
.05192 –.00018
7,367
1.1777
1.1852
1.1779 –.0020 449,890
1.1854 –.0018 42,142
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
24167
24169
24263
24274
24073
24086
S&P 500 Index (CME)-$250 x index
24231
24246
Dec
2631.40 2639.80
2626.80 2639.50
March'18 2642.40 2643.70
2630.50 2642.20
Mini S&P 500 (CME)-$50 x index
2630.50 2641.25
2626.25 2639.50
Dec
March'18 2633.25 2643.75
2629.00 2642.25
Mini S&P Midcap 400 (CME)-$100 x index
1870.90 1887.90
1867.90 1883.60
Dec
March'18 1878.40 1891.60
1872.30 1887.30
Mini Nasdaq 100 (CME)-$20 x index
6298.0
6335.5
6288.8
6323.0
Dec
March'18 6316.3 6354.0
6307.3
6341.8
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1513.30 1526.00
1507.20 1520.70
March'18 1515.90 1528.50
1510.60 1523.70
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1456.00 1463.40
1455.30 1462.50
U.S. Dollar Index (ICE-US)-$1,000 x index
93.57
93.78
93.50
93.77
Dec
March'18
93.24
93.43
93.15
93.41
74 155,152
76
7,814
10.30
10.30
71,392
8,608
10.25 3,018,724
10.25 522,726
12.70
12.40
90,126
3,003
30.0 289,542
30.0 13,856
12.50
12.60
68,303
1,254
5.00
333
.19
.18
32,737
10,518
Source: SIX Financial Information
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
3.4
1942.64
2.690 2.380 2.790
U.S. Aggregate
5.9
U.S. Corporate
1988.57
1955.17
U.S. Corporate Indexes Bloomberg Barclays
2786.90
Total
return
close
YTD total
return (%)
2617.65
3.8 Intermediate
3890.79
10.6 Long term
4.2 Double-A-rated
567.76
6.5
719.80
3.250 3.030 3.520
1166.51
2.860 2.530 3.010
1795.96
4.090 4.030 4.710
524.00
2.700 2.470 2.870
367.05
3.560 3.340 3.870
Triple-B-rated
High Yield Bonds Merrill Lynch
7.2
416.48
8.7
418.24
6.4
2854.13
Index
Yield (%)
Latest Low High
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
2.4
Mortgage-Backed
1.9
Ginnie Mae (GNMA) 2.810 2.630 3.090
2.6
Fannie mae (FNMA) 2.890 2.670 3.120
2.7
Freddie Mac (FHLMC) 2.910 2.680 3.130
High Yield Constrained 5.794 5.373 6.293
Triple-C-rated
High Yield 100
2.870 2.660 3.120
5.0 Muni Master
2.071 1.736 2.419
7-12 year
2.080 1.744 2.516
413.51
7.2
12-22 year
2.374 2.213 2.923
400.99
8.0
22-plus year
2.737 2.716 3.508
5.7
Global Government J.P. Morgan†
10.698 9.584 11.785
545.76
1.6
Global Government 1.400 1.300 1.560
5.602 4.948 5.890
760.77
1.0
Canada
1.950 1.570 2.190
EMU§
0.956 0.933 1.363
France
0.690 0.690 1.210
Germany
0.370 0.210 0.620
378.16
7.4
Global High Yield Constrained 5.243 4.934 5.949
375.66
1.8
306.30
6.7
Europe High Yield Constrained 2.401 1.897 3.589
720.62
2.0
512.85
U.S Agency Bloomberg Barclays
-0.3
1638.37
2.1
U.S Agency
2.140 1.690 2.150
288.21
0.02
Japan
0.410 0.320 0.460
1463.05
1.1
10-20 years
2.000 1.490 2.020
567.05
0.1
Netherlands
0.480 0.360 0.760
20-plus years
2.920 2.730 3.460
922.34
1.0
U.K.
1.580 1.340 1.790
2.930 2.610 3.090
804.64
8.2
3384.07
5.0 Yankee
2461.58
8.9
Emerging Markets ** 5.557 5.279 6.221
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.750
2.250
2.050
0.100
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.798
2.339
1.645
2.317
1.100
2.341
1.781 t
2.520 s
l
1.786
1.794
1.749
l
2.514
2.592
2.806
France 2 -0.622 t
10 0.609 t
l
-0.604
-0.621
l
0.618
0.554
Germany 2 -0.763 t
10 0.295 t
l
-0.735
-0.764
l
0.295
0.328
Italy 2 -0.354 t
10 1.678 t
l
-0.334
l
Japan 2 -0.143 t
10 0.055 t
l
l
0.056
0.031
Spain 2 -0.376 t
10 1.409 t
l
-0.368
-0.394
-0.189
-218.3
l
1.427
1.413
1.443
-96.2
-91.2
-89.8
0.509 s
1.255 s
l
0.493
0.437
0.103
-130.5
-99.7
l
1.231
1.234
1.229
-110.9
-111.2
10
0.050
Year ago
l
Australia 2
0.000
Month ago
l
2.750
0.750
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.807 s
10 2.372 s
2.750
2.750
Commercial paper (AA financial)
1.290 1.285 1.290 0.490
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
3.00
.0092 177,476
.0094 17,092
Tracking Bond Benchmarks
0.100
3.00
1.180 1.170 1.300 0.340
Closing Chg YTD
Symbol Price (%) (%)
52-Week
high
low
Open
interest
Bonds | WSJ.com/bonds
0.500
Call money
13 weeks
ETF
Week
ago
Latest
4 weeks
Largest 100 exchange-traded funds, latest session
ETF
Other short-term rates
Chg
Australian Dollar (CME)-AUD 100,000; $ per AUD
Interest Rate Futures
0.000
3.455 3.477 3.865 3.253
3.473 3.497 3.899 3.281
1.1600 1.1600 1.1700 0.4000
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Thursday, December 7, 2017
Closing Chg YTD
Symbol Price (%) (%)
Fannie Mae
30-year mortgage yields
no
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
0.24
30 days
60 days
1.75
52-Week
High
Low
1.38
U.S. government rates
Discount
International rates
—52-WEEK—
High Low
Secondary market
1.05
1.13
n-
–0.06
0.28
246.663
253.638
All items
Core
Week
Latest ago
Overnight repurchase
U.S.
U.S. consumer price index
—52-WEEK—
High Low
Settle
Japanese Yen (CME)-¥12,500,000; $ per 100¥
** EMBI Global Index
Oct. index
level
Contract
High hilo
Low
Open
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Energy
Thursday
Contract
High hilo
Low
Open
ly
.
Futures Contracts
WSJ.com/commodities
1.750
U.K. 2
4.250
10
-2.5
14.9
-0.615 -242.8
0.750
-176.3
-1.3
64.8
17.5
46.5
-240.2
-171.5
-172.1
-159.1
-0.673 -257.0
0.355 -207.7
-253.3
-177.3
-204.4
-198.6
-0.251
-0.019
-213.3
-111.9
1.724
1.702
1.905
-69.4
-61.6
-43.6
-0.140
-0.190
-0.190
-194.9
-193.8
-129.1
-228.4
-230.5
-216.6
-128.9
-216.0
0.036 -231.6
-129.8
-111.7
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Capital One Financial
Westpac Banking
Bank of America
Dr Pepper Snapple
Union Electric
Boeing
Boston Scientific
AT&T
COF
WSTP
BAC
DPS
AEE
BA
BSX
T
Maturity
3.750 March 9, ’27
2.600 Nov. 23, ’20
5.625
July 1, ’20
3.130 Dec. 15, ’23
3.500 April 15, ’24
3.375 June 15, ’46
3.375 May 15, ’22
3.900 Aug. 14, ’27
Current
Spread*, in basis points
One-day change
108
–13
34 –11
–8
19
–8
69
–7
35
–7
75
–7
75
–7
152
Last week
Stock Performance
Close ($)
% chg
122
46
52
n.a.
n.a.
n.a.
n.a.
156
95.07
...
28.78
94.10
…
281.97
25.04
36.17
1.28
...
0.49
–0.90
…
1.33
–0.79
0.17
187
137
55
334
n.a.
311
183
n.a.
74.98
32.54
17.71
34.25
16.62
…
90.37
169.32
–0.61
0.43
0.28
0.74
1.71
…
–0.01
0.18
…And spreads that widened the most
Citigroup
Healthcare Realty Trust
General Electric
Viacom
Energy Transfer
Teva Pharmaceutical Finance Netherlands III
Time Warner
Apple
C
HR
GE
VIA
ETP
TEVA
TWX
AAPL
5.950
3.625
5.300
5.875
4.900
3.150
4.850
2.500
May 15, ’49
Jan. 15, ’28
Feb. 11, ’21
Feb. 28, ’57
Feb. 1, ’24
Oct. 1, ’26
July 15, ’45
Feb. 9, ’25
199
133
49
387
144
321
187
49
15
20
14
13
12
12
11
10
High-yield issues with the biggest price increases…
Issuer
Symbol
Chemours
Microchip Tech
California Resources
Altice Financing S.A.
Jones Energy Holdings
Denbury Resources
McClatchy
Altice Luxembourg S.A.
CC
MCHP
CRC
ALTICE
JONE
DNR
MNI
ATCNA
Coupon (%)
Maturity
5.375 May 15, ’27
1.625 Feb. 15, ’25
5.500 Sept. 15, ’21
7.500 May 15, ’26
9.250 March 15, ’23
4.625 July 15, ’23
6.875 March 15, ’29
7.625 Feb. 15, ’25
Bond Price as % of face value
Current
One-day change
Last week
2.40
2.14
1.88
1.63
1.31
1.00
1.00
0.75
104.500
167.750
74.000
104.500
n.a.
62.512
92.250
91.625
47.93
87.39
16.69
...
0.92
1.72
9.00
...
3.41
1.25
–0.36
...
–6.59
–1.15
0.11
...
78.500
92.750
n.a.
59.005
108.000
105.250
98.691
97.402
…
9.15
...
...
5.46
…
...
1.90
…
4.21
...
...
–4.04
…
...
–2.56
106.398
169.554
81.500
106.000
73.063
67.000
95.250
93.250
Stock Performance
Close ($)
% chg
…And with the biggest price decreases
CHS/Community Health Systems
Frontier Communications
Tapstone Energy
Intelsat Luxembourg S.A.
Sprint
MPT Operating Partnership
Vine Oil & Gas
Windstream Services
CYH
FTR
TAPENE
INTEL
S
MPW
VRI
WIN
7.125 July 15, ’20
8.500 April 15, ’20
9.750
June 1, ’22
8.125
June 1, ’23
7.875 Sept. 15, ’23
5.250
Aug. 1, ’26
8.750 April 15, ’23
8.625 Oct. 31, ’25
77.000 –2.50
–1.75
90.250
–1.75
85.500
–1.50
52.500
–1.45
107.430
–1.23
104.502
–1.13
97.750
–1.03
95.970
*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
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | B9
BIGGEST 1,000 STOCKS
WSJ.com/stocks
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.
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.
Stock
Net
Sym Close Chg
A B C
ABB
ABB 25.81 0.16
AECOM
ACM 38.09 0.21
AES
AES 10.70 -0.13
Aflac
AFL 87.94 0.33
AGNC Invt AGNC 20.40 0.14
Ansys
ANSS 146.31 1.59
ASML
ASML 172.17 1.50
AT&T
T
36.17 0.06
AbbottLabs ABT 54.69 0.03
AbbVie
ABBV 94.24 -0.16
Abiomed
ABMD 187.91 0.91
s Accenture ACN 148.60 0.33
ActivisionBliz ATVI 61.57 0.82
AcuityBrands AYI 165.35 1.30
Adient
ADNT 79.14 0.88
AdobeSystems ADBE 174.61 1.09
AdvanceAuto AAP 97.61 0.11
AdvMicroDevices AMD 10.04 0.04
AdvSemiEngg ASX 6.37 0.02
Aegon
AEG 6.12
...
AerCap
AER 52.30 0.53
Aetna
AET 178.83 -0.07
AffiliatedMgrs AMG 198.21 0.22
AgilentTechs A
66.71 0.82
AgnicoEagle AEM 42.15 0.73
Agrium
AGU 105.89 1.29
AirProducts APD 160.98 0.56
AkamaiTech AKAM 56.44 0.67
AlaskaAir ALK 69.37 1.54
Albemarle ALB 129.08 1.60
Alcoa
AA 40.60 -0.71
AlexandriaRlEst ARE 128.17 1.32
AlexionPharm ALXN 106.78 -2.64
Alibaba
BABA 174.47 1.84
AlignTech ALGN 241.38 8.37
Alkermes ALKS 52.78 0.02
Alleghany
Y 584.41 7.53
Allegion
ALLE 83.11 1.32
Allergan
AGN 164.87 -3.13
AllianceData ADS 232.45 2.59
AlliantEnergy LNT 44.64 0.10
AllisonTransm ALSN 41.44 0.32
Allstate
ALL 102.11 -0.54
s AllyFinancial ALLY 28.37 0.48
AlnylamPharm ALNY 128.73 4.16
Alphabet A GOOGL 1044.57 11.85
Alphabet C GOOG 1030.93 12.55
Altaba
AABA 70.22 0.81
AlticeUSA ATUS 18.41 0.28
Altria
MO 71.50 -0.16
AlumofChina ACH 15.16 -0.33
Amazon.com AMZN 1159.79 7.44
Ambev
ABEV 6.21 -0.13
Amdocs
DOX 64.40 -0.19
Amerco
UHAL 378.27 3.50
Ameren
AEE 62.67 -0.04
AmericaMovil A AMOV 16.90 0.06
AmericaMovil AMX 16.92 -0.10
AmerAirlines AAL 50.88 1.27
AmCampus ACC 42.99 0.06
AEP
AEP 76.61 -0.12
AmerExpress AXP 98.58 0.37
AmericanFin AFG 104.33 -0.07
AmerHomes4Rent AMH 21.42 0.11
AIG
AIG 59.55 -0.16
Stock
Net
Sym Close Chg
AmerTowerREIT AMT 144.11
AmerWaterWorks AWK 91.08
s Ameriprise AMP 167.60
AmerisourceBrgn ABC 85.93
Ametek
AME 71.40
Amgen
AMGN 173.96
Amphenol APH 88.14
AnadarkoPetrol APC 47.32
AnalogDevices ADI 86.11
Andeavor ANDV 108.92
AndeavorLog ANDX 44.77
AB InBev BUD 111.26
AnnalyCap NLY 11.99
AnteroResources AR 18.20
Anthem
ANTM 223.64
Aon
AON 138.46
Apache
APA 40.63
ApartmtInv AIV 43.85
ApolloGlbMgmt APO 30.72
Apple
AAPL 169.32
ApplMaterials AMAT 52.30
Aptiv
APTV 84.38
AquaAmerica WTR 37.83
Aramark
ARMK 42.54
ArcelorMittal MT 31.04
ArchCapital ACGL 91.85
ArcherDaniels ADM 41.31
Arconic
ARNC 24.59
AristaNetworks ANET 219.86
ArrowElec ARW 77.50
AstraZeneca AZN 32.22
Athene
ATH 47.89
Atlassian
TEAM 45.52
AtmosEnergy ATO 91.56
Autodesk ADSK 109.61
Autohome ATHM 59.16
Autoliv
ALV 128.41
ADP
ADP 115.88
AutoZone AZO 702.34
Avalonbay AVB 179.96
Avangrid
AGR 52.09
AveryDennison AVY 112.35
AxaltaCoating AXTA 32.31
BB&T
BBT 49.58
BCE
BCE 48.21
BHPBilliton BHP 41.04
BHPBilliton BBL 35.81
BOK Fin
BOKF 88.39
BP
BP 39.31
BRF
BRFS 10.90
BT Group BT 17.75
BWX Tech BWXT 61.76
Baidu
BIDU 233.01
BakerHughes BHGE 30.37
Ball
BLL 40.81
BancoBilbaoViz BBVA 8.45
BancodeChile BCH 80.64
BancoMacro BMA 114.90
BcoSantChile BSAC 26.77
BancoSantander SAN 6.48
BanColombia CIB 38.98
BankofAmerica BAC 28.78
BankofMontreal BMO 78.28
BankNY Mellon BK 54.22
BkNovaScotia BNS 64.43
BankofOzarks OZRK 46.43
Barclays
BCS 10.28
Bard CR
BCR 332.07
t BarrickGold ABX 13.66
2.31
0.14
2.83
-0.06
0.36
-2.26
0.36
0.21
0.70
1.18
0.63
-1.74
0.04
0.02
0.93
-0.65
0.06
0.25
0.43
0.31
1.29
-0.98
0.20
0.07
0.31
-1.01
0.09
0.46
7.00
0.46
0.13
-0.17
0.35
0.13
2.69
1.15
1.50
0.59
3.69
0.58
0.33
0.84
-0.04
0.20
-0.12
-0.07
-0.10
1.02
-0.27
-0.54
0.48
0.47
1.86
-0.14
0.01
0.11
-0.93
1.94
-0.20
0.05
-0.10
0.14
-0.40
0.20
0.52
0.27
0.14
0.19
0.11
Net
Sym Close Chg
Stock
BaxterIntl BAX 63.52 -0.20
BectonDicknsn BDX 217.81 -0.36
Berkley
WRB 69.87 0.16
BerkHathwy A BRK.A 294100-46.00
BerkHathwy B BRK.B 196.34 0.33
BerryGlobal BERY 60.24 -0.11
BestBuy
BBY 61.49 0.52
Bio-RadLab A BIO 254.97 1.34
Bio-RadLab B BIO.B 255.25 -0.35
Biogen
BIIB 319.57 4.91
BioMarinPharm BMRN 80.90 0.08
BlackKnight BKI 45.05 0.70
BlackBerry BB 10.29 0.08
BlackRock BLK 512.41 0.59
Blackstone BX 31.93 0.17
BlockHR
HRB 27.39 -1.60
s BlueBuffaloPet BUFF 31.70 0.27
bluebirdbio BLUE 167.90 8.50
s Boeing
BA 281.97 3.70
BorgWarner BWA 53.68 0.63
BostonProps BXP 123.95 -1.46
BostonSci BSX 25.04 -0.20
Braskem
BAK 27.35 -0.37
BrightHorizons BFAM 92.05 1.63
BrighthouseFin BHF 58.63 0.46
Bristol-Myers BMY 61.84 0.87
BritishAmTob BTI 66.51 -1.33
Broadcom AVGO263.89
...
BroadridgeFinl BR 89.27 0.62
BrookfieldMgt BAM 42.97 0.96
BrookfieldInfr BIP 43.99 0.08
Brown&Brown BRO 51.64 -0.03
Brown-Forman B BF.B 66.03 0.18
s Brown-Forman A BF.A 66.08 0.64
BuckeyePtrs BPL 46.49 0.79
Bunge
BG 69.21 0.88
BurlingtonStrs BURL 110.50 1.92
CA
CA 33.17 -0.13
CBD Pao
CBD 22.56 -0.54
s CBRE Group CBG 43.82 0.27
CBS B
CBS 57.20 -0.23
CBS A
CBS.A 57.63 -0.72
s CDK Global CDK 69.95 0.65
CDW
CDW 69.02 0.59
CF Industries CF 38.22 1.67
CGI Group GIB 53.08 0.28
CH Robinson CHRW 87.42 0.27
CIT Group CIT 49.30 0.15
CME Group CME 152.07 -0.02
CMS Energy CMS 49.58 0.17
CNA Fin
CNA 53.67 -0.23
CNOOC
CEO 134.29 1.27
CPFLEnergia CPL 11.41 -0.19
CRH
CRH 35.20 0.72
CSX
CSX 56.16 0.53
CVS Health CVS 71.09 -0.29
CabotOil
COG 27.78 -0.27
CadenceDesign CDNS 43.55 0.65
CaesarsEnt CZR 12.55 0.05
CalAtlantic CAA 54.98 0.61
CamdenProperty CPT 91.94 0.50
CampbellSoup CPB 49.28 -0.91
CIBC
CM 93.01
...
CanNtlRlwy CNI 80.06 0.56
CanNaturalRes CNQ 34.57 0.03
CanPacRlwy CP 176.93 1.83
Canon
CAJ 38.20 0.15
CapitalOne COF 95.07 1.20
CardinalHealth CAH 58.50 -1.22
New Highs and Lows | WSJ.com/newhighs
Thursday, December 7, 2017
42.82
AAR
AIR
AXIS CapPfdE AXSpE 25.85
Accenture
ACN 148.66
Agilysys
AGYS 12.98
28.52
AllyFinancial
ALLY
11.91
AmRltyInv
ARL
Ameriprise
AMP 168.29
4.40
AmeriServFin ASRV
Analogic
ALOG 88.45
AnaptysBio
ANAB 89.89
3.88
AptevoTherap APVO
ArchCapitalPfdE ACGLP 25.23
AspenInsPfd
AHLpD 26.60
Astronics
ATRO 43.95
BB&T Pfd H
BBTpH 27.25
Bandwidth
BAND 24.79
BankofAmPfdEE BACpA 27.14
BankofAmPfdL BACpL1351.50
BayBancorp
BYBK 12.45
BigRockPtrsWt BRPAW 0.44
9.70
BigRockPtrs
BRPA
BigRockPtrsAcqnUn BRPAU 10.17
BlueBuffaloPet BUFF 31.77
284.79
Boeing
BA
40.00
BoiseCascade BCC
BootBarn
BOOT 15.55
BostonBeer
SAM 190.80
66.41
Brown-Forman A BF.A
63.40
C&F Fin
CFFI
44.04
CBRE Group
CBG
70.25
CDK Global
CDK
CampingWorld CWH 47.62
111.62
Carters
CRI
Cimpress
CMPR 123.95
CitiTrends
CTRN 26.81
CoastwayBancorp CWAY 21.08
ComtechTel
CMTL 23.90
Conn's
CONN 37.80
Copart
CPRT 43.97
CreditAcceptance CACC 314.12
96.60
DollarGeneral DG
DollarTree
DLTR 108.07
DovaPharm
DOVA 30.92
4.74
ENDRA LifeSci NDRA
ENDRA LifeWt NDRAW 1.45
EatonVance
56.76
EV
4.70
eGain
EGAN
31.85
EldoradoResorts ERI
0.5
0.8
0.2
2.6
1.7
-0.1
1.7
-1.2
7.8
8.4
0.5
0.2
0.4
3.0
0.3
-4.5
...
0.4
-0.2
14.3
0.4
1.6
0.9
1.3
2.4
2.4
0.7
1.0
1.3
0.6
0.9
2.1
1.1
-0.5
3.9
0.5
3.6
6.2
1.1
1.7
2.8
1.7
2.1
4.8
45.0
1.0
22.4
1.9
48.70
90.81
24.13
91.78
19.09
34.74
41.76
68.70
68.10
67.10
188.85
39.98
44.30
33.30
64.99
62.45
19.58
42.55
130.94
26.85
37.82
0.98
20.00
60.95
18.45
68.97
61.66
55.16
316.60
15.22
73.84
14.91
15.55
10.30
98.35
8.90
62.05
71.58
48.87
60.51
19.40
26.47
18.13
2.67
18.49
191.38
68.75
22.00
22.87
54.84
98.55
5.9
0.9
49.8
0.8
1.2
1.0
0.8
8.2
0.9
2.2
0.7
-0.5
8.8
1.4
18.3
4.6
4.6
2.0
2.5
-0.9
0.7
4.2
2.9
1.9
0.7
...
3.0
1.0
1.4
1.0
6.4
0.1
-0.8
0.1
2.0
39.6
3.5
1.4
3.1
0.2
14.8
0.5
0.8
4.8
2.6
2.7
0.2
0.5
-0.5
-0.1
-0.8
52-Wk %
Sym Hi/Lo Chg
PublicStoragePfZ PSApZ
PublicStoragePfA PSApA
PublicStoragePfB PSApB
PublicStoragePfD PSApD
PublicStoragePfE PSApE
PublicStoragePfdF PSApF
PublicStoragePfdG PSApG
PublicStoragePfV PSApV
RadianGroup RDN
RayonierAdvPfdA RYAMpA
SEI Investments SEIC
SageTherap
SAGE
Saia
SAIA
SeaChange
SEAC
ShakeShack
SHAK
ShoreBancshares SHBI
SleepNumber SNBR
SterlingBancorp SBT
SterlingCnstr STRL
StevenMadden SHOO
StitchFix
SFIX
SucampoPharm SCMP
SunComms
SUI
Sysco
SYY
TitanMachinery TITN
TotalSystem
TSS
21stCenturyFoxA FOXA
21stCenturyFoxB FOX
US Foods
USFD
UtdCmntyBcp UCBA
UnitedGuardian UG
UnitedSecBcshrs UBFO
Verso
VRS
VikingTheraWt VKTXW
VishayPrecision VPG
Vodafone
VOD
WasteMgt
WM
WellsFargo Wt WFC.WS
WellsFargo
WFC
WestRock
WRK
Wiley B
JW.B
Wiley A
JW.A
WolverineWwide WWW
WW Ent
WWE
XOMA
XOMA
no
Highs
52-Wk %
Sym Hi/Lo Chg Stock
EmpresaDisCom EDN
EnPro
NPO
EntellusMedical ENTL
EquityLife
ELS
Etsy
ETSY
FederatedInvest FII
FirstBancorpNC FBNC
FirstSolar
FSLR
FirstCash
FCFS
FiveBelow
FIVE
FleetCorTech FLT
GMS
GMS
GlbBloodTherap GBT
GreeneCnty
GCBC
Greif A
GEF
GpoFinGalicia GGAL
HalozymeTherap HALO
HiltonGrandVac HGV
Hubbell
HUBB
HuntingtonBcPfC HBANN
Invesco
IVZ
IndiaGlblCap
IGC
InnovativeIndProp IIPR
InteractiveBrkrs IBKR
InvescoMtg
IVR
JacobsEngg
JEC
KLX
KLXI
LambWeston LW
LendingTree
TREE
Limbach
LMB
lululemon
LULU
Luxfer
LXFR
MGIC Investment MTG
MI Acqns
MACQ
MagellanHealth MGLN
MarinusPharma MRNS
MellanoxTech MLNX
Meredith
MDP
MetropolitanBk MCB
MichaelKors
KORS
NCI BuildingSys NCS
NationRiskBasedUS RBUS
NewResidInvt NRZ
NewYork
NWY
NewtekBusSvcs NEWT
ParkerHannifin PH
Paychex
PAYX
PennyMacFinS PFSI
PlumasBancorp PLBC
Progressive
PGR
ProtoLabs
PRLB
27.50
27.79
26.69
25.36
25.30
25.69
25.63
25.67
22.24
135.33
71.77
169.58
68.75
3.65
45.76
18.08
38.11
13.02
18.90
44.48
25.38
17.70
95.81
61.30
23.12
76.56
34.75
34.34
31.28
23.00
21.33
10.70
12.82
2.30
28.60
31.23
83.95
26.50
60.00
63.76
63.43
64.10
29.89
30.40
34.18
0.9
0.7
0.1
0.2
0.2
0.5
0.6
0.9
...
2.1
0.2
70.0
1.1
23.6
7.9
2.2
-0.4
1.7
0.6
0.7
1.2
4.3
0.6
2.3
0.5
1.5
2.9
3.3
1.7
2.9
4.3
3.9
-7.5
26.7
2.6
1.8
0.5
2.6
1.3
0.2
4.9
4.9
0.5
2.1
13.4
Lows
ADOMANI
ADOM 3.04 -6.7
A-MarkPrecMetals AMRK 12.64 -2.9
2.30 ...
ARCDocumentSolns ARC
AXIS Capital
AXS
AchillionPharm ACHN
AdvantageOil AAV
AdvaxisWt
ADXSW
Alexanders
ALX
AquaMetals
AQMS
ArcadiaBiosci RKDA
Argan
AGX
Arsanis
ASNS
AsankoGold
AKG
AssuredGuaranty AGO
AtossaGenetics ATOS
AurynResources AUG
BallantyneStrong BTN
BarrickGold
ABX
BellatrixExplor BXE
BoardwalkPipe BWP
Bsquare
BSQR
CBL Assoc
CBL
CHF Solutions CHFS
CMSevenStarWt CMSSW
CTI BioPharma CTIC
CECO Env
CECE
Cemex
CX
ChinaMobile
CHL
CoeurMining
CDE
COPEL
ELP
Comstock
CHCI
ComstockMining LODE
CoreCivic
CXW
Curis
CRIS
CytoriTherap CYTX
DHT
DHT
DuluthHoldings DLTH
DynagasLNG DLNG
EPR Prop
EPR
Essendant
ESND
Evogene
EVGN
Ferrellgas
FGP
FibrocellScience FCSC
FiveStarSrLiving FVE
Francesca's
FRAN
Frank'sIntl
FI
Frontline
FRO
HeatBiologics HTBX
HeclaMining
HL
IDT
IDT
iBio
IBIO
InVivoTherap NVIV
K2MGroup
KTWO
KayneAnAcqnWt KAACW
KeryxBiopharm KERX
KnotOffshore KNOP
LTC Properties LTC
LegacyAcqnUn LGC.U
LendingClub
LC
Libbey
LBY
LiquiditySvcs LQDT
MaidenHldg6.7%PfdD MHpD
Data provided by
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes.
NAV is net asset value. Percentage performance figures are total returns, assuming
reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect
sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading
day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period.
Fund
Thursday, December 7, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
45.61
Ultra
American Funds Cl A
32.12
AmcpA p
42.07
AMutlA p
27.82
BalA p
12.91
BondA p
CapIBA p
63.43
CapWGrA
52.52
EupacA p
56.42
FdInvA p
64.50
51.99
GwthA p
10.40
HI TrA p
41.95
ICAA p
23.65
IncoA p
44.94
N PerA p
47.46
NEcoA p
66.07
NwWrldA
56.77
SmCpA p
TxExA p
13.09
WshA p
46.47
Baird Funds
AggBdInst
10.88
11.24
CorBdInst
BlackRock Funds A
+0.30 30.8 GlblAlloc p
20.37
BlackRock Funds Inst
+0.13 19.7 EqtyDivd
22.49
+0.01 15.9 GlblAlloc
20.51
+0.01 13.8 HiYldBd
7.81
-0.02 3.2 StratIncOpptyIns 9.94
-0.01 12.8 Bridge Builder Trust
+0.06 21.7 CoreBond
NA
+0.07 27.7 Dimensional Fds
+0.16 20.7 5GlbFxdInc
11.02
+0.25 23.7 EmgMktVa
29.82
... 6.6 EmMktCorEq 22.10
+0.04 17.1 IntlCoreEq
14.19
+0.03 11.5 IntlVal
19.90
+0.14 27.2 IntSmCo
21.41
+0.33 32.0 IntSmVa
23.17
-0.02 28.4 US CoreEq1
22.66
+0.33 23.5 US CoreEq2
21.51
-0.01 5.7 US Small
37.09
+0.06 17.8 US SmCpVal 39.38
25.62
US TgdVal
-0.03 4.0 USLgVa
40.11
-0.02 4.5 Dodge & Cox
Balanced
+0.04 15.3
+0.01 12.3
... 7.7
... 4.4
...
NA
...
-0.16
-0.06
+0.04
+0.05
+0.07
+0.06
+0.10
+0.10
+0.19
+0.20
+0.13
+0.13
2.2
26.2
29.2
23.9
21.5
25.2
22.5
19.0
16.9
10.4
5.8
7.6
16.0
Net YTD
NAV Chg % Ret
110.88 +0.27
14.00 +0.05
13.87
...
Income
45.64 +0.10
Intl Stk
207.02 +0.85
Stock
DoubleLine Funds
10.65 -0.01
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.82 +0.21
Federated Instl
StraValDivIS
6.10
...
Fidelity
92.55 +0.29
500IdxInst
500IdxInstPrem 92.55 +0.29
500IdxPrem 92.55 +0.29
ExtMktIdxPrem r 63.88 +0.50
IntlIdxPrem r 43.17 +0.08
SAIUSLgCpIndxFd 14.19 +0.05
76.70 +0.30
TMktIdxF r
TMktIdxPrem 76.69 +0.31
USBdIdxInstPrem 11.60 -0.02
Fidelity Advisor I
NwInsghtI
33.83 +0.21
Fidelity Freedom
+0.01 12.0 GblStock
-0.36
0.07
1.27
0.15
-0.25
-2.06
1.66
52-Wk %
Sym Hi/Lo Chg
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
0.86
1.05
0.42
0.12
0.03
2.55
0.39
0.78
0.24
0.56
0.13
0.20
2.39
-0.15
-0.14
0.26
0.36
2.58
-0.01
1.58
0.34
0.64
0.66
0.02
-0.31
0.06
4.69
-0.63
0.23
0.34
-0.89
-0.27
2.98
-1.43
0.44
0.34
1.79
0.78
-0.30
1.50
-0.01
-0.46
0.80
-0.22
-0.81
-0.67
-0.22
-0.35
1.20
0.11
4.83
-1.05
-0.06
-0.74
1.20
0.23
0.53
-0.18
0.17
2.24
0.16
0.02
-0.08
0.49
4.73
0.44
0.49
0.06
-1.39
-1.02
-0.03
1.62
5.34
0.10
0.53
-0.09
-1.52
1.24
3.92
D E F
DISH Network DISH 48.95
DTE Energy DTE 115.07
DXC Tech DXC 94.65
Danaher
DHR 92.68
Darden
DRI 85.28
DaVita
DVA 67.14
Deere
DE 151.11
n-
52-Wk %
Sym Hi/Lo Chg Stock
Carlisle
CSL 114.61
Carlyle
CG 21.75
CarMax
KMX 66.97
Carnival
CCL 66.18
Carnival
CUK 66.29
Caterpillar CAT 142.89
Cavium
CAVM 84.99
CboeGlobalMkts CBOE 124.19
Celanese A CE 105.85
Celgene
CELG 102.73
t Cemex
CX
7.32
CenovusEnergy CVE 9.48
Centene
CNC 100.90
CenterPointEner CNP 28.86
CentraisElBras EBR 5.80
CenturyLink CTL 14.10
Cerner
CERN 69.94
CharterComms CHTR 325.22
CheckPoint CHKP 103.53
Chemours CC 47.93
CheniereEnergy LNG 46.83
CheniereEnerPtrs CQP 27.56
CheniereEnHldgs CQH 26.56
Chevron
CVX 119.63
ChinaEastrnAir CEA 28.55
ChinaLifeIns LFC 15.54
ChinaLodging HTHT 119.03
t ChinaMobile CHL 49.16
ChinaPetrol SNP 70.05
ChinaSoAirlines ZNH 44.24
ChinaTelecom CHA 47.85
ChinaUnicom CHU 13.66
Chipotle
CMG 313.65
Chubb
CB 149.44
ChunghwaTel CHT 34.80
Church&Dwight CHD 48.13
Cigna
CI 206.00
CimarexEnergy XEC 110.88
CincinnatiFin CINF 74.16
Cintas
CTAS 158.00
CiscoSystems CSCO 37.40
Citigroup
C
74.98
CitizensFin CFG 41.43
CitrixSystems CTXS 87.17
Clorox
CLX 144.24
Coca-Cola KO 45.78
Coca-Cola Euro CCE 39.32
Coca-Cola Femsa KOF 67.85
Cognex
CGNX 63.19
CognizantTech CTSH 71.61
Coherent
COHR 289.03
ColgatePalm CL 73.20
ColonyNorthStar CLNS 12.09
Comcast A CMCSA 37.89
Comerica
CMA 84.43
CommerceBcshrs CBSH 55.85
CommScope COMM 37.41
SABESP
SBS 10.06
ConagraBrands CAG 37.25
ConchoRscs CXO 138.21
ConocoPhillips COP 50.54
ConEd
ED 88.49
ConstBrands A STZ 216.85
ContinentalRscs CLR 47.08
Cooper
COO 238.80
Copa
CPA 134.63
s Copart
CPRT 43.88
Corning
GLW 31.73
CoStar
CSGP 291.82
Costco
COST 186.20
Coty
COTY 17.60
Credicorp
BAP 206.92
s CreditAcceptance CACC 314.12
CreditSuisse CS 16.87
CrownCastle CCI 109.71
CrownHoldings CCK 59.25
Ctrip.com
CTRP 43.76
Cullen/Frost CFR 94.80
Cummins
CMI 169.30
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.
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
DellTechs DVMT 75.89
DeltaAir
DAL 53.41
DentsplySirona XRAY 64.99
DeutscheBank DB 18.85
DevonEnergy DVN 37.15
Diageo
DEO 141.36
DiamondbkEner FANG 108.95
DigitalRealty DLR 114.14
DiscoverFinSvcs DFS 73.45
DiscovComm C DISCK 18.34
DiscovComm A DISCA 19.53
Disney
DIS 105.26
DolbyLab
DLB 61.10
s DollarGeneral DG 93.37
s DollarTree DLTR 107.31
DominionEner D
83.68
Domino's
DPZ 179.51
Donaldson DCI 48.90
DouglasEmmett DEI 40.28
Dover
DOV 96.71
DowDuPont DWDP 71.37
DrPepperSnap DPS 94.10
DukeEnergy DUK 87.90
DukeRealty DRE 27.78
ENI
E
32.69
EOG Rscs EOG 99.72
EQT
EQT 55.80
E*TRADE ETFC 49.84
EXACT Sci EXAS 54.44
EastWestBncp EWBC 60.20
EastmanChem EMN 91.50
Eaton
ETN 77.26
s EatonVance EV 56.46
eBay
EBAY 36.85
Ecolab
ECL 135.92
Ecopetrol
EC 11.89
EdisonInt
EIX 71.77
EdwardsLife EW 117.45
ElbitSystems ESLT 135.52
ElectronicArts EA 104.37
EmersonElec EMR 65.78
EnbridgeEnPtrs EEP 14.14
Enbridge
ENB 38.45
Encana
ECA 11.68
EnelAmericas ENIA 9.62
EnelGenChile EOCC 24.50
EnergyTransferEq ETE 16.27
EnergyTransfer ETP 16.62
Entergy
ETR 83.70
EnterpriseProd EPD 24.69
Equifax
EFX 116.83
Equinix
EQIX 455.77
s EquityLife ELS 91.44
EquityResdntl EQR 65.15
Ericsson
ERIC 6.25
EssexProp ESS 240.61
EsteeLauder EL 125.18
EverestRe RE 210.36
EversourceEner ES 64.91
Exelixis
EXEL 26.90
Exelon
EXC 40.81
Expedia
EXPE 119.21
ExpeditorsIntl EXPD 64.18
ExpressScripts ESRX 67.41
ExtraSpaceSt EXR 85.25
ExxonMobil XOM 82.55
F5Networks FFIV 131.83
FMC
FMC 88.25
Facebook
FB 180.14
FactSet
FDS 200.00
Fastenal
FAST 53.84
FederalRealty FRT 129.84
FedEx
FDX 239.30
Ferrari
RACE 104.63
FiatChrysler FCAU 17.10
FibriaCelulose FBR 14.34
FidNatlFin FNF 39.76
FidNatlInfo FIS 95.87
FifthThirdBncp FITB 30.40
58.com
WUBA 70.28
FirstAmerFin FAF 55.57
FirstData
FDC 16.50
FirstRepBank FRC 92.79
s FirstSolar FSLR 68.43
FirstEnergy FE 32.72
Fiserv
FISV 131.20
s FleetCorTech FLT 185.72
Flex
FLEX 17.75
FlirSystems FLIR 46.19
FLR 49.54
0.83 Fluor
1.11 FomentoEconMex FMX 91.48
-0.51 FordMotor F
12.53
0.35 ForestCIty A FCE.A 24.08
0.27 Fortinet
FTNT 41.42
-1.21 Fortis
FTS 36.80
2.62 Fortive
FTV 73.60
1.50 FortBrandsHome FBHS 68.24
0.51 Franco-Nevada FNV 77.78
0.08 FranklinRscs BEN 44.50
0.09 FreeportMcM FCX 14.84
-0.20 FreseniusMed FMS 51.28
-0.07
2.52
1.79
GGP
GGP 23.40
0.15
Gallagher AJG 65.27
-1.66
Gaming&Leisure GLPI 36.03
0.54
Gap
GPS 33.68
0.36
GardnerDenver GDI 32.18
0.43
Garmin
GRMN 61.27
0.29
Gartner
IT 120.23
-0.85
Gazit-Globe GZT 10.33
-0.41
GeneralDynamics GD 200.17
0.40
GeneralElec GE 17.71
0.05
GeneralMills GIS 56.69
0.86
GeneralMotors GM 42.02
-1.38
Genpact
G
32.33
0.44
Gentex
GNTX 20.43
0.71
GenuineParts GPC 93.80
0.45
Gerdau
GGB 3.42
0.89
Gildan
GIL 31.61
1.47
GileadSciences GILD 72.72
0.54
GSK
GSK 34.84
0.02
GlobalPayments GPN 99.19
-0.96
GoDaddy
GDDY 48.15
0.15
Goldcorp
GG 12.02
3.05
GoldmanSachs GS 248.56
4.09
Goodyear GT 31.32
-0.48
Graco
GGG 128.77
1.19
Grainger
GWW 222.27
1.05
GreatPlainsEner GXP 34.16
0.26
Grifols
GRFS 21.97
0.31
GrubHub
GRUB 68.94
0.19
GpoAeroportuar PAC 103.63
-0.11
GpoAvalAcc AVAL 8.33
-0.28
s GpoFinGalicia GGAL 62.36
...
GpFinSantMex BSMX 7.75
0.28
GrupoTelevisa TV 18.59
0.11
HCA Healthcare HCA 85.06
0.36
HCP
HCP 26.77
1.14
HDFC Bank HDB 95.00
5.53
HD Supply HDS 39.23
0.71
HP
HPQ 20.97
-0.25
HSBC
HSBC 48.82
0.03
-1.35 Halliburton HAL 43.46
Hanesbrands
HBI 20.58
0.71
-0.70 HarleyDavidson HOG 51.18
HRS 143.20
-0.20 Harris
0.68 HartfordFinl HIG 54.77
Hasbro
HAS 91.35
-0.31
0.04 HealthcareAmer HTA 30.47
HEI.A 74.35
-0.16 Heico A
HEI 89.65
-1.16 Heico
Helm&Payne
HP 57.21
-0.19
0.27 HenrySchein HSIC 67.57
HLF 69.20
0.36 Herbalife
HSY 113.56
0.26 Hershey
Hess
HES 44.60
4.08
-2.14 HewlettPackard HPE 14.22
Hilton
HLT 77.28
0.41
-0.25 HollyFrontier HFC 45.32
HOLX 41.68
2.91 Hologic
0.06 HomeDepot HD 182.00
HondaMotor
HMC 33.35
0.15
-0.33 Honeywell HON 153.28
0.34 HormelFoods HRL 36.93
0.57 DR Horton DHI 50.16
-0.18 HostHotels HST 19.65
1.99 HuanengPower HNP 24.75
HUBB 130.79
0.79 s Hubbell
HUM 253.90
0.25 Humana
JBHT 111.60
-0.12 JBHunt
5.19 HuntingtonBcshs HBAN 14.71
HuntingIngalls
HII 235.86
0.35
0.64 Huntsman HUN 30.48
71.62
1.24 HyattHotels H
0.04 IAC/InterActive IAC 125.24
ICICI
Bank
IBN
9.51
0.03
IdexxLab
IDXX 159.78
IHSMarkit INFO 45.56
ING Groep ING 18.13
52-Wk % s Invesco
IVZ 37.34
Stock
Sym Hi/Lo Chg IPG Photonics IPGP 207.33
IQV 100.92
MartinMidstream MMLP 12.70 -1.1 IQVIA
IRCP 56.00
1.82 -1.1 IRSA Prop
McEwenMining MUX
Medicines
MDCO 25.40 -0.7 IcahnEnterprises IEP 53.44
ICLR 111.14
5.46 -2.1 Icon
MedleyCapital MCC
IEX 132.30
MerrimackPharm MACK 10.04 0.5 IDEX
3.01 -5.6 IllinoisToolWks ITW 166.49
NTN Buzztime NTN
ILMN 214.67
7.03 -0.8 Illumina
NanoStringTech NSTG
0.65 -5.3 ImperialOil IMO 30.88
Neovasc
NVCN
INCY 94.83
1.45 -3.2 Incyte
NeuroMetrix
NURO
Nevro
NVRO 65.40 1.8 Infosys
INFY 15.67
7.82 0.1 Ingersoll-Rand IR
NewSeniorInvt SNR
86.30
4.91 -1.0 Ingredion
NewYorkREIT NYRT
INGR 139.25
3.53 -4.5 Intel
NordicAmerTankers NAT
INTC 43.08
3.38 -2.9 s InteractiveBrkrs IBKR 60.20
NovaGoldRscs NG
1.40 -2.2 ICE
OnconovaTherap ONTX
ICE 70.39
1.30 -4.2 InterContinentl IHG 58.99
OrexigenTherap OREX
PanAmerSilver PAAS 13.99 -1.2 IBM
IBM 153.57
0.90 -1.6 IntlFlavors IFF 153.26
ParkerDrilling PKD
2.26 5.2 IntlPaper
PAVmed
PAVM
IP
56.80
PAVmedWt
PAVMW 0.64 -24.0 Interpublic IPG 20.19
0.29 -7.0 Intuit
PlatinumGrpMtls PLG
INTU 155.56
1.08 -0.8 IntuitiveSurgical ISRG 383.78
Precipio
PRPO
2.80 1.7 InvitatHomes INVH 23.24
ProQR Therap PRQR
Prothena
PRTA 37.99 3.7 IonisPharma IONS 53.93
RMG Networks RMGN 0.87 -5.8 IronMountain IRM 39.99
7.15 3.0 IsraelChemicals ICL
RaPharm
RARX
4.10
15.94 -3.3 ItauUnibanco ITUB 12.81
RangeResources RRC
RegalwoodGlbUn RWGE.U 9.99 ...
6.60 -10.5
ReToEcoSol
RETO
1.63 -6.8
RexEnergy
REXX
JD 38.13
0.28 2.4 JD.com
RitterPharm
RTTR
0.60 ... JPMorganChase JPM 104.62
RosettaGenmcs ROSG
0.51 -8.1 JackHenry JKHY 116.81
SPIEnergy
SPI
1.07 0.9 s JacobsEngg JEC 67.69
SandRidgeMS SDT
ScanSource
SCSC 33.55 -0.6 JamesHardie JHX 16.20
0.39
-0.61
0.15
0.04
0.13
-0.19
0.31
0.48
-0.42
0.21
0.49
0.28
G H I
Net
Sym Close Chg
Stock
JanusHenderson JHG 36.12
JazzPharma JAZZ 134.83
JetBlue
JBLU 21.87
J&J
JNJ 140.01
JohnsonControls JCI 37.36
JonesLang JLL 152.70
JuniperNetworks JNPR 28.42
JunoTherap JUNO 56.73
KAR Auction KAR 50.49
KB Fin
KB 54.54
KKR
KKR 19.66
KLA Tencor KLAC 104.58
KT
KT 15.66
KSCitySouthern KSU 111.59
Kellogg
K
67.27
KeyCorp
KEY 19.74
KeysightTechs KEYS 42.72
KilroyRealty KRC 75.11
KimberlyClark KMB 119.76
KimcoRealty KIM 18.16
KinderMorgan KMI 17.36
Knight-Swift KNX 43.11
Kohl's
KSS 48.88
KoninklijkePhil PHG 38.39
KoreaElcPwr KEP 17.79
KraftHeinz KHC 79.36
Kroger
KR 26.53
Kyocera
KYO 67.53
LATAMAirlines LTM 12.15
L Brands
LB 55.10
LG Display LPL 13.59
LINE
LN 43.52
LKQ
LKQ 39.75
L3 Tech
LLL 193.62
LabCpAm LH 155.26
LamResearch LRCX 189.16
LamarAdv LAMR 76.58
s LambWeston LW 54.98
LasVegasSands LVS 69.60
Lazard
LAZ 50.47
Lear
LEA 175.93
Leggett&Platt LEG 46.17
Leidos
LDOS 63.18
Lennar A
LEN 61.71
Lennar B
LEN.B 49.96
LennoxIntl LII 204.55
LeucadiaNatl LUK 26.00
LibertyBroadbandA LBRDA 84.60
LibertyBroadbandC LBRDK 85.53
LibertyGlobal C LBTYK 30.35
LibertyGlobal A LBTYA 31.24
LibertyLiLAC A LILA 21.31
LibertyLiLAC C LILAK 21.02
LibertyQVC A QVCA 24.95
LibertyVenturesA LVNTA 56.29
LibertyFormOne C FWONK 34.72
LibertyFormOne A FWONA 33.15
LibertyBraves A BATRA 21.93
LibertyBraves C BATRK 22.00
LibertySirius C LSXMK 42.22
LibertySirius A LSXMA 42.36
LibertyProperty LPT 44.60
EliLilly
LLY 85.87
LincolnElectric LECO 91.10
LincolnNational LNC 77.59
LionsGate A LGF.A 31.63
LionsGate B LGF.B 30.06
LiveNationEnt LYV 43.59
LloydsBanking LYG 3.52
LockheedMartin LMT 314.42
Loews
L
49.99
LogitechIntl LOGI 32.92
LogMeIn
LOGM 115.25
Lowe's
LOW 83.63
s lululemon LULU 72.01
LyondellBasell LYB 106.51
...
-0.56
0.28
0.28
0.71
-0.19
0.75
0.04
-0.04
0.05
-0.72
0.25
0.44
0.10
0.75
0.03
0.12
-0.57
0.18
2.00
1.37
-0.06
2.61
-0.04
0.15
0.84
0.16
0.10
0.52
0.08
0.15
2.73
0.01
...
1.96
0.16
0.41
0.59
-0.05
0.27
0.08
0.04
0.30
0.68
-0.15
0.54
0.14
0.65
0.64
0.74
-0.01
1.56
-0.20
-0.07
0.06
0.53
0.22
0.24
1.20
0.22
0.28
-0.17
0.45
0.04
-0.16 M&T Bank MTB 171.07
3.19 s MGIC Investment MTG 15.32
3.60 MGM Resorts MGM 33.34
1.19 MPLX
MPLX 36.06
0.19 MSCI
MSCI 128.21
2.21 Macerich
MAC 64.47
0.33 Macy's
M
25.28
0.51 MagellanMid MMP 66.98
2.43 MagnaIntl MGA 55.65
0.18 Manpower MAN 125.57
-0.21 ManulifeFin MFC 20.91
0.22 MarathonOil MRO 14.74
0.41 MarathonPetrol MPC 64.00
0.25 Markel
MKL 1098.66
4.68 MarketAxess MKTX 195.60
-0.09 Marriott
MAR 127.85
-0.98 Marsh&McLen MMC 83.73
1.09 MartinMarietta MLM 208.55
-0.62 MarvellTech MRVL 22.00
0.31 Masco
MAS 42.31
0.19 Mastercard MA 149.45
0.69 MatchGroup MTCH 29.85
-0.14 MaximIntProducts MXIM 52.16
1.04 McCormickVtg MKC.V 102.36
0.11 McCormick MKC 102.14
0.49 McDonalds MCD 172.91
0.09 McKesson MCK 150.01
-0.37 Medtronic MDT 80.57
1.15 MelcoResorts MLCO 25.86
-0.35 MercadoLibre MELI 272.68
-0.23 Merck
MRK 54.77
-0.53 MetLife
MET 53.62
-0.54 MettlerToledo MTD 620.15
... s MichaelKors KORS 59.95
-0.14 MicroFocus MFGP 32.57
-0.63 MicrochipTech MCHP 87.39
4.74 MicronTech MU 43.20
0.15 Microsemi MSCC 51.83
1.39 Microsoft
MSFT 82.49
-0.08 MidAmApt MAA 102.27
0.08 Middleby
MIDD 125.36
-0.13 MitsubishiUFJ MTU 6.96
Net
Sym Close Chg
Stock
-0.24 MonsterBev MNST 62.30 -0.97
MCO 151.73 -0.54
1.17 Moody's
0.25 MorganStanley MS 52.35 0.66
MOS 23.87 0.46
-1.05 Mosaic
0.12 MotorolaSol MSI 92.80 1.51
MYL 37.37 0.38
3.25 Mylan
0.46 NRG Energy NRG 27.73 0.44
2.17 NTTDoCoMo DCM 25.53 0.23
NVR 3387.93 14.09
0.20 NVR
-0.18 NXP Semi NXPI 115.13 0.80
NDAQ 77.79 -0.53
0.47 Nasdaq
1.84 NationalGrid NGG 59.68 0.36
0.04 NatlOilwell NOV 32.40 -0.26
0.17 NatlRetailProp NNN 41.59 0.10
-0.86 NektarTherap NKTR 54.83 5.14
0.36 NetApp
NTAP 57.53 0.32
0.64 Netease
NTES 320.35 2.07
NFLX 185.20 -0.10
0.83 Netflix
-1.43 Neurocrine NBIX 72.50 2.69
0.12 NewOrientalEduc EDU 88.89 0.01
0.25 NY CmntyBcp NYCB 13.36 0.03
0.46 NewellBrands NWL 30.81 -0.98
0.74 NewfieldExpln NFX 28.86 0.42
0.15 NewmontMin NEM 35.92 0.16
...
0.17 NewsCorp B NWS 16.55
-1.13 NewsCorp A NWSA 16.36 -0.03
0.12 NextEraEnergy NEE 158.18 0.40
0.71 NielsenHoldings NLSN 38.11 0.15
NKE 60.60 0.88
-0.12 Nike
NI
27.03 0.03
-0.11 NiSource
...
0.11 NobleEnergy NBL 25.90
NOK 4.63 -0.09
0.22 Nokia
...
0.43 NomuraHoldings NMR 5.86
NDSN 127.22 0.81
-1.02 Nordson
-0.25 Nordstrom JWN 44.98 -0.34
4.93 NorfolkSouthern NSC 141.03 2.30
0.53 NorthernTrust NTRS 97.32 0.82
0.53 NorthropGrum NOC 302.68 2.48
0.85 NorwegCruise NCLH 54.34 0.03
NVS 82.88 -0.30
0.49 Novartis
2.42 NovoNordisk NVO 51.52 -0.55
NUE 58.59 0.65
0.13 Nucor
NVDA 191.99 2.73
0.57 NVIDIA
0.80
0.75
-0.96 OGE Energy OGE 34.65 0.52
0.06 ONEOK
OKE 52.41 0.61
0.47 OReillyAuto ORLY 244.86 -0.97
0.34 OccidentalPetrol OXY 69.41 0.14
0.03 OldDomFreight ODFL 129.63 1.04
0.04 Olin
OLN 35.33 0.02
-0.21 Omnicom
OMC 73.09 -1.38
-0.15 ON Semi
ON 19.50 0.28
0.20 OpenText
OTEX 32.34 0.16
0.68 Oracle
ORCL 48.52 0.10
1.21 Orange
ORAN 17.14 0.36
1.18 OrbitalATK OA 132.15 -0.32
0.09 Orix
IX
83.24 -0.34
0.11 Oshkosh
OSK 88.00 0.09
0.58 OwensCorning OC 87.85 1.20
0.56 PG&E
PCG 52.96 -0.10
0.44 PLDT
PHI 29.84 0.03
0.55 PNC Fin
PNC 143.42 0.41
0.17 POSCO
PKX 76.31 -0.62
1.09 PPG Ind
PPG 116.11 -0.08
-0.05 PPL
PPL 35.02 0.01
-0.02 PTC
PTC 62.31 0.79
0.86 PVH
PVH 133.73 0.45
0.02 Paccar
PCAR 71.22 1.10
2.45 PackagingCpAm PKG 117.96 0.62
0.03 PacWestBancorp PACW 47.78 0.25
0.07 PaloAltoNtwks PANW 142.83 1.46
1.45 ParkHotels PK 28.45 0.07
1.23 s ParkerHannifin PH 191.33 5.00
4.35 ParsleyEnergy PE 25.69 0.35
1.82 s Paychex
PAYX 68.53 0.12
PayPal
PYPL 73.69 0.55
Pearson
PSO 9.84 0.26
1.56 PembinaPipeline PBA 35.07 0.12
PNR 69.42 0.19
-0.13 Pentair
0.24 People'sUtdFin PBCT 18.89 0.07
PEP 116.73 -2.17
0.37 PepsiCo
0.21 PerkinElmer PKI 70.11 0.57
PRGO 82.87 0.49
-0.37 Perrigo
0.19 PetroChina PTR 65.91 -0.23
0.88 PetroleoBrasil PBR 9.65 -0.28
0.63 PetroleoBrasilA PBR.A 9.25 -0.31
PFE 35.50 -0.06
0.45 Pfizer
0.05 PhilipMorris PM 106.70 -0.90
PSX 97.86 0.27
0.29 Phillips66
0.54 PilgrimPride PPC 37.27 -0.48
PinnacleFoods
PF 56.96 -0.49
-4.77
-1.43 PinnacleWest PNW 90.15 0.24
0.55 PioneerNatRscs PXD 154.25 3.59
-0.67 PlainsAllAmPipe PAA 19.73 0.54
PAGP 20.62 0.32
7.04 PlainsGP
0.18 PolarisIndustries PII 131.48 5.22
POT 18.89 0.25
0.16 Potash
PX 150.96 0.57
2.03 Praxair
PCLN 1719.62 0.58
1.17 Priceline
0.66 PrincipalFin PFG 70.99 0.17
Procter&Gamble
PG 90.10 -1.15
-0.59
-0.86 s Progressive PGR 54.52 -0.07
PLD 65.82 1.10
-0.57 Prologis
-0.46 PrudentialFin PRU 116.33 0.95
Prudential
PUK 48.50 0.14
-0.93
0.74 PublicServiceEnt PEG 51.98 -0.35
0.47 PublicStorage PSA 208.34 -3.46
0.42 PulteGroup PHM 33.59 0.49
QGEN 31.24 0.40
0.62 Qiagen
QRVO 68.72 -1.38
4.17 Qorvo
0.10 Qualcomm QCOM 65.23 0.25
QuantaServices
PWR 38.45 0.16
0.28
1.08 QuestDiag DGX 96.62 -0.77
O P Q
Net
Sym Close Chg
Stock
RegionsFin RF 16.97
ReinsGrp
RGA 160.88
RelianceSteel RS 81.80
RepublicSvcs RSG 65.24
ResMed
RMD 85.77
RestaurantBrands QSR 61.08
RioTinto
RIO 47.06
RobertHalf RHI 53.53
Rockwell
ROK 192.26
RockwellCollins COL 133.61
RogersComm B RCI 51.15
Rollins
ROL 46.46
RoperTech ROP 260.48
RossStores ROST 76.70
RoyalBkCanada RY 79.34
RoyalBkScotland RBS 7.49
RoyalCaribbean RCL 124.05
RoyalDutchA RDS.A 63.29
RoyalDutchB RDS.B 64.86
Ryanair
RYAAY 118.96
SAP
SAP 112.42
S&P Global SPGI 169.53
SBA Comm SBAC 166.68
s SEI Investments SEIC 70.70
Sina
SINA 96.05
SINOPEC
SHI 56.71
SK Telecom SKM 27.99
SLGreenRealty SLG 101.82
SS&C Tech SSNC 40.56
SVB Fin
SIVB 229.79
Salesforce.com CRM 104.07
Sanofi
SNY 43.29
SantanderCons SC 17.90
Sasol
SSL 30.66
Scana
SCG 44.35
Schlumberger SLB 62.07
SchwabC
SCHW 51.08
ScottsMiracleGro SMG 101.41
ScrippsNetworks SNI 81.67
Seagate
STX 39.58
SealedAir SEE 47.96
SeattleGenetics SGEN 57.27
SemicondctrMfg SMI 6.61
SempraEnergy SRE 116.43
SensataTech ST 47.69
ServiceCorp SCI 37.61
ServiceMaster SERV 50.24
ServiceNow NOW 121.00
ShawComm B SJR 22.81
SherwinWilliams SHW 406.47
ShinhanFin SHG 44.22
Shire
SHPG 143.36
Shopify
SHOP 99.79
SignatureBank SBNY 137.24
SimonProperty SPG 162.07
SiriusXM
SIRI 5.63
Skyworks SWKS 96.68
SmithAO
AOS 61.59
Smith&Nephew SNN 35.82
Smucker
SJM 118.47
Snap
SNAP 14.70
SnapOn
SNA 170.93
SOQUIMICH SQM 51.94
Sony
SNE 45.75
Southern
SO 51.33
SoCopper SCCO 42.25
SouthwestAir LUV 63.02
SpectraEnerPtrs SEP 40.83
SpectrumBrands SPB 115.70
SpiritAeroSys SPR 84.16
Splunk
SPLK 80.55
t Sprint
S
5.46
Square
SQ 38.73
StanleyBlackDck SWK 168.36
Starbucks SBUX 59.14
StarwoodProp STWD 21.73
StateStreet STT 96.92
Statoil
STO 19.95
SteelDynamics STLD 39.74
Steris
STE 88.74
SterlingBancorp STL 25.50
STMicroelec STM 21.32
Stryker
SYK 151.15
SumitomoMits SMFG 8.20
s SunComms SUI 95.15
SunLifeFinancial SLF 40.61
SuncorEnergy SU 34.31
SunTrustBanks STI 64.76
Symantec SYMC 27.56
SynchronyFin SYF 37.34
Syngenta SYT 92.38
Synopsys SNPS 90.33
SynovusFin SNV 48.98
s Sysco
SYY 60.91
co Fo
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Thursday, December 7, 2017
Stock
10.8
17.5
4.3
19.8
15.5
3.7
34.3
13.7
20.0
20.0
20.0
16.4
22.3
20.0
19.4
19.4
3.4
26.7
49.80 -0.9
2.89 -3.0
3.90 -5.9
0.68 15.2
394.05 -1.8
2.58 -6.1
0.20 -8.6
44.00 -23.2
12.33 2.7
0.56 -7.1
34.60 -1.8
0.29 4.4
1.37 3.4
4.05 -2.8
13.28 0.8
1.53 -3.0
12.79 0.8
4.35 -2.8
5.36 -1.1
2.87 -4.0
0.25 1.9
2.62 -1.5
4.91 -0.6
7.10 1.8
49.00 -1.3
6.71 -1.5
6.70 -2.8
1.28 -4.2
0.34 -1.9
22.21 0.8
0.78 2.6
0.24 0.7
3.55 1.4
16.00 -17.0
11.55 -5.0
66.21 0.3
8.70 -2.0
3.50 -6.5
4.10 2.3
0.68 -32.5
1.40 3.4
6.11 -5.8
5.97 0.8
4.80 -0.6
0.36 2.0
3.43 -2.3
10.48 -12.9
0.15 -5.1
0.95 -11.6
17.06 -1.3
0.73 -4.4
4.33 -0.2
19.15 2.3
44.91 0.2
9.90 -0.8
3.29 -15.5
6.04 -2.9
4.55 -4.2
22.63 -1.4
M N
J K L
ScorpioTankers STNG
2.99 -0.7
scPharm
SCPH 13.02 -3.6
SecureWorks SCWX 8.10 -8.5
0.71 -1.5
SenesTech
SNES
9.65 -0.2
SilverRunII
SRUN
9.87 -0.3
SocialCapHed IPOA
0.54 -1.9
SolitarioZinc
XPL
2.57 -0.3
SonicFoundry SOFO
9.84 -8.1
SperoTherap
SPRO
5.43 -4.0
Sprint
S
8.48 -3.4
Synchronoss
SNCR
4.15 -4.1
TahoeResources TAHO
TerraFormPower TERP 10.93 1.5
0.67 -2.2
The9
NCTY
TremontMortgage TRMT 14.80 -0.1
2.01 -3.3
USAutoPartsNtwk PRTS
5.47 -4.8
US NatGas
UNG
9.14 -3.0
US12mthNtlGas UNL
2.57 -3.4
UnvlTechInst UTI
0.61 -1.0
Vivus
VVUS
1.08 -6.0
WPCS Intl
WPCS
0.85 0.8
WesternCopper WRN
8.98 -2.8
WideOpenWest WOW
0.56 -4.7
ZosanoPharma ZSAN
Fund
Net YTD
NAV Chg % Ret Fund
FF2020
FF2025
FF2030
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
16.82
14.57
18.27
16.82
14.57
18.28
15.35
10.79
0.31
-0.31
0.93
...
-0.05
MizuhoFin MFG 3.60
MobileTeleSys MBT 8.94
MohawkInds MHK 280.32
MolsonCoors B TAP 79.95
MolsonCoors A TAP.A 80.39
Mondelez MDLZ 42.68
Monsanto MON 118.00
0.28
1.09
0.60
-0.04
0.59
-0.09
-0.39
0.45
1.67
0.38
-0.42
0.29
1.57
-0.09
0.15
0.07
1.03
-0.21
-0.24
-0.04
0.22
0.91
0.28
0.17
0.55
-0.14
0.11
-0.57
0.46
1.13
1.15
0.12
0.26
0.07
0.57
...
0.54
0.99
0.16
0.40
0.38
0.52
0.01
0.12
0.22
0.12
0.25
3.24
0.06
5.28
0.10
0.67
4.02
1.08
-0.69
0.03
0.21
0.19
-0.13
-0.44
0.10
2.31
1.74
0.84
0.44
0.06
1.90
0.66
1.11
0.52
0.10
-0.23
1.12
-0.11
-0.14
0.09
0.40
-0.07
0.53
-0.26
-0.15
-0.03
-0.61
0.04
0.61
0.24
0.27
0.32
0.20
-0.05
0.02
1.68
0.09
1.39
Net
Sym Close Chg
Stock
ThorIndustries THO 151.49
3M
MMM 240.30
Tiffany
TIF 95.52
TimeWarner TWX 90.37
Toll Bros
TOL 47.00
Torchmark TMK 89.17
Toro
TTC 65.50
TorontoDomBk TD 56.52
Total
TOT 55.74
s TotalSystem TSS 75.93
ToyotaMotor TM 123.39
TractorSupply TSCO 66.48
TransCanada TRP 49.14
TransDigm TDG 275.15
TransUnion TRU 55.59
Travelers
TRV 134.21
Trimble
TRMB 40.87
TurkcellIletism TKC 9.62
TurquoiseHill TRQ 3.00
s 21stCenturyFoxA FOXA 34.18
s 21stCenturyFoxB FOX 33.77
Twitter
TWTR 21.01
TylerTech TYL 184.11
TysonFoods TSN 82.82
UBS Group UBS 17.04
UDR
UDR 38.83
UGI
UGI 49.64
s US Foods USFD 30.62
UltaBeauty ULTA 221.59
UltSoftware ULTI 211.85
UltraparPart UGP 21.63
Unilever
UN 57.37
Unilever
UL 55.96
UnionPacific UNP 128.46
UnitedContinental UAL 63.53
UnitedMicro UMC 2.46
UPS B
UPS 119.73
UnitedRentals URI 162.38
US Bancorp USB 54.90
UnitedTech UTX 122.40
UnitedTherap UTHR 137.07
UnitedHealth UNH 220.15
UnivDisplay OLED 167.35
UniversalHealthB UHS 110.34
UnumGroup UNM 56.79
VEON
VEON 3.81
VEREIT
VER 7.84
VF
VFC 71.91
Visa
V
111.40
VailResorts MTN225.50
Vale
VALE 10.74
ValeantPharm VRX 17.63
ValeroEnergy VLO 85.59
Vantiv
VNTV 72.86
VarianMed VAR 111.96
Vectren
VVC 68.91
Vedanta
VEDL 17.82
VeevaSystems VEEV 55.53
Ventas
VTR 63.53
VeriSign
VRSN112.82
VeriskAnalytics VRSK 95.44
Verizon
VZ 50.42
VertxPharm VRTX 138.78
Viacom B VIAB 29.64
Viacom A VIA 34.25
VistraEnergy VST 17.77
VMware
VMW 117.22
s Vodafone VOD 31.04
VornadoRealty VNO 76.06
VoyaFinancial VOYA 44.16
VulcanMatls VMC 124.88
ly
.
How to Read the Stock Tables
1.62
0.73
-0.29
-0.06
-0.63
-0.02
-0.01
-0.53
2.65
-1.12
0.54
-0.65
-0.08
R S
RELX
RENX 22.85
RELX
RELX 23.51
RPM
RPM 53.48
RalphLauren RL 99.97
RandgoldRscs GOLD 90.42
RaymondJames RJF 88.46
Raytheon RTN 186.14
RealtyIncome O
54.83
RedHat
RHT 123.80
RegencyCtrs REG 67.45
RegenPharm REGN 373.61
-0.02
-0.02
0.25
2.67
...
0.74
0.94
0.13
1.86
0.11
-1.52
T U V
TAL Education TAL 29.75
TD Ameritrade AMTD 52.19
TE Connectivity TEL 93.89
Telus
TU 37.78
TIM Part
TSU 18.09
TJX
TJX 73.84
T-MobileUS TMUS 61.92
TRowePrice TROW 102.74
TaiwanSemi TSM 39.01
TakeTwoSoftware TTWO 106.54
Tapestry
TPR 41.98
TargaResources TRGP 45.01
Target
TGT 61.09
TataMotors TTM 31.09
TechnipFMC FTI 27.18
TeckRscsB TECK 22.77
TelecomArgentina TEO 37.22
TelecomItalia TI
8.73
TelecomItalia A TI.A 7.34
TeledyneTech TDY 180.06
Teleflex
TFX 251.19
TelefonicaBras VIV 15.21
Telefonica TEF 10.08
TelekmIndonesia TLK 30.89
Tenaris
TS 29.43
Teradyne
TER 40.30
Tesla
TSLA 311.24
TevaPharm TEVA 15.00
TexasInstruments TXN 97.78
Textron
TXT 54.79
ThermoFisherSci TMO 185.63
ThomsonReuters TRI 44.00
0.68
0.44
1.61
0.15
-0.44
-1.21
-0.20
0.95
0.33
1.65
0.61
1.36
0.37
0.49
-0.38
-0.02
0.20
0.17
0.10
-0.35
1.09
-0.09
0.08
0.06
0.20
0.34
-2.02
0.68
0.76
0.87
1.76
-0.03
2.98
1.63
0.33
-0.01
0.32
0.14
1.44
-0.08
-0.11
1.12
0.42
-0.53
0.36
1.15
0.53
-1.15
0.14
0.02
0.07
0.97
1.07
-0.08
2.15
-0.47
0.07
-0.04
0.37
0.51
-1.55
4.75
-0.34
-0.20
-0.11
0.51
1.34
-0.03
1.44
4.10
0.31
1.20
2.83
0.21
3.30
2.68
0.45
-0.04
0.05
0.69
1.66
4.32
-0.26
0.78
0.62
0.94
0.92
0.46
0.24
1.53
0.54
0.42
-0.43
-0.26
1.50
0.70
0.25
0.26
0.55
0.56
-0.36
-0.41
3.77
W X Y Z
WABCO
WBC 142.69
WEC Energy WEC 68.72
W.P.Carey WPC 70.52
WPP
WPP 89.04
Wabtec
WAB 75.47
Wal-Mart WMT 96.78
WalgreensBoots WBA 69.61
WasteConnections WCN 68.42
s WasteMgt WM 83.91
Waters
WAT 196.47
Watsco
WSO 168.45
Wayfair
W 74.92
Weibo
WB 100.71
WellCareHealth WCG 209.07
s WellsFargo WFC 59.36
Welltower HCN 66.19
WestPharmSvcs WST 99.61
WestarEnergy WR 56.41
WestAllianceBcp WAL 58.70
WesternDigital WDC 78.35
WesternGasEquity WGP 36.34
WesternGasPtrs WES 46.08
WesternUnion WU 19.52
WestlakeChem WLK 99.37
WestpacBanking WBK 23.61
s WestRock WRK 63.56
Weyerhaeuser WY 35.62
WheatonPrecMet WPM 20.90
Whirlpool WHR 170.49
Williams
WMB 28.47
WilliamsPartners WPZ 36.48
WillisTowers WLTW 155.42
Wipro
WIT 5.17
WooriBank WF 43.80
Workday
WDAY104.20
Wyndham WYN 112.77
WynnResorts WYNN 158.92
XPO Logistics XPO 76.71
XcelEnergy XEL 50.84
Xerox
XRX 29.59
Xilinx
XLNX 69.00
Xylem
XYL 68.38
YPF
YPF 22.29
YY
YY 109.61
Yandex
YNDX 33.02
YumBrands YUM 83.05
YumChina YUMC 40.18
ZTO Express ZTO 16.02
ZayoGroup ZAYO 34.41
Zillow C
Z
41.13
Zillow A
ZG 40.97
ZimmerBiomet ZBH 114.78
ZionsBancorp ZION 50.47
Zoetis
ZTS 71.64
2.32
0.30
0.45
0.56
0.61
0.01
-1.44
0.09
0.41
1.27
1.53
1.15
2.35
1.60
0.79
-0.10
0.42
0.32
0.61
0.49
0.37
1.28
0.12
1.68
0.22
0.14
0.38
0.02
1.38
0.08
0.46
-1.68
0.01
-0.08
1.85
...
1.07
0.68
-0.25
-0.05
0.61
0.40
-0.19
8.65
0.40
-0.19
0.22
0.25
0.30
0.32
0.32
-1.00
0.55
0.67
Dividend Changes
Dividend announcements from December 7.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
Medifast
One Liberty Properties
Universal Health Realty
W. P. Carey Inc.
MED
OLP
UHT
WPC
2.7 .48 /.32
6.8 .45 /.43
3.6 .665 /.66
5.7 1.01 /1.005
Q
Q
Q
Q
Feb08 /Dec22
Jan05 /Dec22
Dec29 /Dec18
Jan16 /Dec29
Initial
Gabelli Food All Nations
Pendrell
.2173
12.32
FOANC
PCO
Company
Symbol
Pentair PLC
Prudentl 6.5% Perp Sub Cp
Vina Concha y Toro ADR
Amount
Yld % New/Old Frq
PNR
PUKpA
VCO
2.0
6.2
1.3
.35
.40625
.10707
BKJ
PCAR
1.4
.10
1.20
Q
Q
Payable /
Record
Feb09 /Jan26
Dec23 /Dec08
/Dec22
Special
Bancorp of New Jersey
Paccar
Dec27 /Dec19
Jan04 /Dec14
Dec15 /Dec08
Dec27 /Dec15
Suspended
Jan08 /Dec20
Jan05 /Dec29
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Fred's
Q
FRED
Dec15 /
Foreign
Ambev ADR
FirstService
Net YTD
NAV Chg % Ret Fund
+0.03 14.0 FrankTemp/Franklin C
2.38 -0.01
+0.03 15.1 Income C t
+0.05 17.7 FrankTemp/Temp A
12.19
...
+0.02 NS GlBond A p
26.99 +0.05
+0.03 NS Growth A p
+0.05 NS FrankTemp/Temp Adv
+0.05 NS GlBondAdv p 12.15 +0.01
+0.04 NS Harbor Funds
CapApInst
76.10 +0.57
Fidelity Invest
70.13 +0.24
23.94 +0.07 15.4 IntlInst r
Balanc
Harding
Loevner
88.65 +0.83 34.3
BluCh
NA
...
128.20 +0.89 31.1 IntlEq
Contra
128.21 +0.89 31.2 Invesco Funds A
ContraK
11.43 +0.01
CpInc r
10.27 +0.01 10.7 EqIncA
41.22 +0.05 23.8 John Hancock Class 1
DivIntl
16.08 +0.03
184.60 +2.31 35.0 LSBalncd
GroCo
17.27 +0.05
184.57 +2.31 35.1 LSGwth
GrowCoK
John
Hancock
Instl
7.93 -0.01 3.8
InvGB
24.49 +0.13
DispValMCI
InvGrBd
11.28 -0.02 4.2
LowP r
53.93 +0.16 17.7 JPMorgan Funds
41.03 +0.20
LowPriStkK r 53.90 +0.16 17.8 MdCpVal L
102.89 +0.52 24.5 JPMorgan R Class
MagIn
CoreBond
11.63 -0.02
109.65 +0.90 37.6
OTC
Puritn
23.42 +0.09 17.4 Lazard Instl
19.33 -0.13
SrsEmrgMkt 20.91 -0.04 33.2 EmgMktEq
SrsGroCoRetail 18.14 +0.24 35.8 Loomis Sayles Fds
14.16 -0.01
LSBondI
16.26 +0.04 27.0
SrsIntlGrw
SrsIntlVal
10.79 +0.03 17.8 Lord Abbett A
4.26
...
ShtDurIncmA
p
TotalBond
10.67 -0.01 4.1
Lord Abbett F
First Eagle Funds
4.25 -0.01
60.69 -0.02 11.9 ShtDurIncm
GlbA
Metropolitan West
FPA Funds
10.66
-0.02
TotRetBd
FPACres
35.19 +0.30 9.2
10.66 -0.02
TotRetBdI
FrankTemp/Frank Adv
10.03 -0.02
2.33
... 7.2 TRBdPlan
IncomeAdv
MFS Funds Class I
FrankTemp/Franklin A
41.68 -0.01
ValueI
7.52
... 6.5
CA TF A p
MFS Funds Instl
2.35
... 7.0
IncomeA p
IntlEq
25.34
...
RisDv A p
60.00 +0.08 18.0
ABEV
FSV
0.7
.09583
.1225
Q
Net YTD
NAV Chg % Ret Fund
Mutual Series
6.9 GlbDiscA
32.42 +0.05
Oakmark Funds Invest
4.1 EqtyInc r
34.48 +0.12
14.6 Oakmark
86.22 +0.39
28.61
...
OakmrkInt
4.4 Old Westbury Fds
LrgCpStr
15.00 +0.03
34.3 Oppenheimer Y
20.1 DevMktY
40.90 -0.16
IntGrowY
43.16 +0.10
NA Parnassus Fds
42.49 +0.10
ParnEqFd
9.4 PIMCO Fds Instl
NA
...
AllAsset
13.9 TotRt
10.26 -0.01
17.5 PIMCO Funds A
NA
...
IncomeFd
14.1 PIMCO Funds D
IncomeFd
NA
...
12.7 PIMCO Funds Instl
IncomeFd
NA
...
3.7 PIMCO Funds P
NA
...
IncomeP
21.7 Price Funds
98.18 +0.77
BlChip
7.1 CapApp
30.12 +0.01
35.80 +0.14
EqInc
2.3 EqIndex
71.05 +0.22
70.58 +0.45
Growth
2.4 HelSci
74.56 +1.33
39.91 +0.31
InstlCapG
3.0 IntlStk
19.10 +0.02
3.3 IntlValEq
15.12 +0.02
3.3 MCapGro
93.62 +0.72
MCapVal
32.04 +0.10
16.3 N Horiz
56.27 +0.71
N Inc
9.49 -0.02
25.1 OverS SF r
11.27 +0.04
R2020
23.37 +0.03
18.04 +0.04
26.59 +0.06
R2030
19.45 +0.06
R2035
R2040
27.95 +0.08
39.83 +0.08
Value
PRIMECAP Odyssey Fds
Growth r
37.36 +0.40
Principal Investors
NA
...
DivIntlInst
Prudential Cl Z & I
TRBdZ
14.54 -0.04
Schwab Funds
41.31 +0.13
S&P Sel
TIAA/CREF Funds
19.80 +0.08
EqIdxInst
IntlEqIdxInst 20.27 +0.04
Tweedy Browne Fds
28.50
...
GblValue
VANGUARD ADMIRAL
244.38 +0.76
500Adml
BalAdml
34.58 +0.06
11.84
...
CAITAdml
CapOpAdml r 158.47 +1.12
EMAdmr
36.34 -0.06
78.22 +0.10
EqIncAdml
96.92 +0.87
ExplrAdml
ExtndAdml
83.92 +0.67
GNMAAdml 10.49 -0.01
71.69 +0.33
GrwthAdml
HlthCareAdml r 88.85 +0.30
HYCorAdml r 5.92 -0.01
25.88 -0.03
InfProAd
94.15 +0.40
IntlGrAdml
ITBondAdml 11.39 -0.02
ITIGradeAdml 9.78 -0.01
LTGradeAdml 10.73 -0.06
MidCpAdml 189.58 +1.21
11.49 -0.01
MuHYAdml
14.20 -0.01
MuIntAdml
7.8 R2025
13.3
19.0
26.0
16.9
28.7
24.5
15.5
NA
4.9
NA
NA
NA
NA
35.2
15.0
15.3
19.8
32.5
26.2
36.5
24.9
18.0
24.2
10.3
29.9
3.8
24.3
Net YTD
NAV Chg % Ret Fund
14.5
16.4
18.0
19.4
20.4
18.4
30.4
NA
6.1
20.0
19.3
22.5
13.8
20.0
12.8
5.3
27.5
24.5
16.7
20.5
16.4
2.1
26.2
17.2
6.7
2.5
39.8
3.8
4.2
10.9
17.5
8.1
5.0
Net YTD
NAV Chg % Ret Fund
11.76
MuLTAdml
10.92
MuLtdAdml
MuShtAdml 15.74
PrmcpAdml r 138.74
REITAdml r 118.47
SmCapAdml 70.16
STBondAdml 10.39
STIGradeAdml 10.65
TotBdAdml
10.77
TotIntBdIdxAdm 22.04
TotIntlAdmIdx r 29.82
66.07
TotStAdml
14.16
TxMIn r
ValAdml
40.96
WdsrllAdml
70.55
66.01
WellsIAdml
74.93
WelltnAdml
80.64
WndsrAdml
-0.01
...
...
+0.88
+0.32
+0.57
...
...
-0.01
...
+0.04
+0.26
+0.02
+0.08
+0.13
-0.07
+0.02
+0.29
6.8
2.3
1.2
27.5
4.1
14.6
1.2
2.2
3.5
2.7
23.4
19.4
23.0
15.2
14.3
9.3
13.2
17.4
VANGUARD FDS
DivdGro
27.07
210.60
HlthCare r
INSTTRF2020 22.71
INSTTRF2025 23.00
INSTTRF2030 23.21
INSTTRF2035 23.42
INSTTRF2040 23.63
INSTTRF2045 23.78
39.48
IntlVal
20.00
LifeCon
LifeGro
33.48
27.16
LifeMod
27.54
PrmcpCor
33.65
SelValu r
27.45
STAR
STIGrade
10.65
16.03
TgtRe2015
31.85
TgtRe2020
18.69
TgtRe2025
33.79
TgtRe2030
-0.03
+0.71
+0.03
+0.04
+0.05
+0.05
+0.06
+0.06
+0.08
+0.01
+0.07
+0.04
+0.16
+0.16
+0.05
...
+0.02
+0.04
+0.03
+0.06
17.3
17.2
12.8
14.4
15.8
17.1
18.5
19.1
24.3
10.0
17.2
13.6
24.2
16.9
16.7
2.1
10.5
12.7
14.3
15.7
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg % Ret
20.77 +0.05
35.79 +0.09
22.49 +0.06
36.18 +0.09
13.65 +0.01
11.02 -0.01
27.25 -0.02
43.38 +0.01
39.75 +0.07
VANGUARD INDEX FDS
244.33 +0.76
500
ExtndIstPl
207.10 +1.64
56.73 +0.38
SmValAdml
10.73 -0.01
TotBd2
17.82 +0.02
TotIntl
66.03 +0.26
TotSt
VANGUARD INSTL FDS
34.59 +0.06
BalInst
DevMktsIndInst 14.18 +0.02
DevMktsInxInst 22.17 +0.04
ExtndInst
83.92 +0.67
71.70 +0.34
GrwthInst
InPrSeIn
10.54 -0.01
241.11 +0.75
InstIdx
241.13 +0.75
InstPlus
59.26 +0.23
InstTStPlus
41.88 +0.27
MidCpInst
MidCpIstPl
206.55 +1.32
70.16 +0.57
SmCapInst
STIGradeInst 10.65
...
10.77 -0.01
TotBdInst
10.73 -0.01
TotBdInst2
10.77 -0.01
TotBdInstPl
TotIntBdIdxInst 33.07 -0.01
TotIntlInstIdx r 119.24 +0.14
TotItlInstPlId r 119.26 +0.14
TotStInst
66.08 +0.26
40.96 +0.08
ValueInst
Western Asset
NA
...
CorePlusBdI
17.1
18.5
19.1
19.1
7.8
2.6
9.3
13.1
14.2
19.9
16.4
10.5
3.4
23.3
19.3
12.8
23.1
23.1
16.4
26.2
2.5
20.0
20.0
19.4
17.6
17.6
14.6
2.2
3.5
3.5
3.5
2.7
23.4
23.5
19.4
15.2
NA
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B10 | Friday, December 8, 2017
BANKING & FINANCE
CORPORATE FOCUS
Credit Suisse Chief Pivots to Home Turf
Shrink to Grow
Credit Suisse has reduced the size of its toxic assets, while beefing up wealth management.
Risk-weighted assets in
strategic resolution unit
Assets under management
in wealth-managementrelated activities†
Credit Suisse's share price
80 billion Swiss francs
800 billion Swiss francs
30 Swiss francs
60
600
25
20
400
20
200
15
JASON ALDEN/BLOOMBERG NEWS
40
10
5
0
0
0
2013
’14
’15
’16
’17*
2013
’14
’15
’16
’17*
*Through September †Includes Swiss and international wealth-management private banking
as well as Asia-Pacific private banking.
1 Swiss franc = $1.01 Source: Credit Suisse
strengths, this ambition of being a leading wealth manager
was the right one,” Mr. Thiam
said in an interview last week.
“When we go abroad, being
Swiss is a positive for all our
potential clients.”
Mr. Thiam—who comes
from Ivory Coast, was educated in Paris and spent
much of his career in London, most recently as CEO of
U.K. insurer Prudential
PLC—would seem an unlikely champion of Swiss
banking, an industry as
closely associated with Switzerland as skiing and
watches.
Shrinking the bank was a
key first step.
At the bank’s investors’
day conference last week in
London, Credit Suisse announced cost-savings targets
and said it would return half
of its profit to shareholders
in 2019 and 2020 through
share buybacks and dividends, prompting a rise in
shares.
There are risks to the
bank’s focus on its home turf
while managing money globally. Credit Suisse is now
slimmer than it once was
and less exposed to trading
and investment banking,
which, though risky, can be
highly profitable. While
Switzerland is one of the
safest markets in the world,
the country also has negative interest rates and a
2013 ’14
’15
’16
’17
THE WALL STREET JOURNAL.
frothy housing market, both
of which could cause trouble
for its banks.
A U.S. tax overhaul is another uncertainty. Although
it could be a positive in the
long term by raising earnings and economic activity,
Credit Suisse and other
banks would see a decline in
the value of deferred tax assets, which are tax credits
and deductions from crisisera financial losses, if the
corporate tax rate is cut
from 35% to 20%. Credit
Suisse would have to take a
$2.1 billion charge against
profit the year the bill is
signed, though it
wouldn’t affect the bank’s
capital base.
Tidjane Thiam’s moves are starting to pay off for the lender.
Looking ahead, much depends on whether Credit
Suisse can pivot from what
Mr. Thiam dubbed the
“Greek tragedy” of 2016,
when the bank was beset by
heavy losses and internal
strife, to a “virtuous circle”
in which wealth management
and investment banking generate fees from rich clients.
A promising trend: Asia is
producing one new billionaire—or potential client—every other day.
Credit Suisse’s biggest
Swiss competitors, including
UBS Group AG, have pushed
aggressively into Asian
wealth management. Credit
Suisse’s 190 billion francs in
managed wealth there ac-
New Rules on Risk Set for Global Lenders
n-
‘It is time for implementation,’ said ECB President Mario Draghi, left, at the news conference Thursday on Basel III capital rules.
tors want banks to hold could
also give greater clarity on
dividend payments.
Still, question marks remain
over whether the nonbinding
recommendations will be watered down as they are passed
into law by governments.
Holding up the final rules
was the protracted spat between European authorities
and much of the rest of the
world—notably the U.S.—over
how their very different banking systems would adapt to
the international standards.
European banks rely heavily
on internal models to work out
how much capital to hold
against their loans. U.S. lenders, for instance, are constrained by a more simple leverage ratio, which measures
equity capital to total assets.
European politicians, mean-
no
FRANKFURT—Global
finance officials agreed on longawaited banking rules that
reach a compromise between
opposing European and U.S.
views about how to measure
the riskiness of lenders.
The agreement is the last
piece of the Basel III regulatory
package, a sweeping overhaul
introduced in the wake of the
financial crisis. The overhaul
forced banks around the world
to boost their capital cushion,
making them better prepared
to weather downturns without
taxpayer bailouts.
The last step has been to
make measures of riskiness
more transparent and comparable around the world. U.S.
officials have argued European
banks rely too much on internal models that might paint an
overly optimistic picture of
their balance-sheet health; European officials have said the
U.S. proposals unfairly disfavor
them for holding mortgages on
their balance sheets, a common practice on the Continent.
The compromise will likely
force banks, in particular in
Europe, to increase the
amount of capital they hold
against loans going sour. But
lenders will have years to build
up these buffers. The new
rules will be phased in between 2022 and 2027.
Mario Draghi, who was
chairman of the group of central-bank governors who signed
off on Basel III, said the agreement marked a final step in the
design of postcrisis rules for
banks. “It is time for implementation, not design,” he said.
Bolstering investor confidence in banks’ balance sheets
could also help spur a wave of
mergers, in particular in Europe’s fragmented banking
sector. More detailed guidance
on how much capital regula-
BABANI/EPA/SHUTTERSTOCK
BY PATRICIA KOWSMANN
AND MAX COLCHESTER
while, said tightening rules
would pinch lending and stymie
a nascent economic recovery.
The compromise agreement
will allow banks a degree of leeway to use their own risk models to calculate risk. The Group
of Central Bank Governors and
Heads of Supervision, which
oversees the standard-setting
Basel Committee, signed off on
a 72.5% floor to limit the extent
to which banks can use their
own internal models to compute the value of risk-weighted
assets. That means banks’ bespoke risk models are allowed
to vary from a standard model,
but by no more than 27.5%.
There should be no special exceptions to what types of assets
are included in this calculation,
which was a previous demand
by the French, who eventually
conceded.
“This is a compromise,” Mr.
Draghi said. “There were members who wanted a higher level
and members who wanted a
lower level.”
The phasing in of other
rules has also been softened.
Officials agreed to push back
the implementation of the socalled fundamental review of
the trading book, or FRTB,
which overhauls how banks
treat the risk of assets such as
stocks and bonds that they
hold in the short term. The
FRTB will kick in along with
the new Basel III rules years
down the road; it had been expected in 2019.
Still, pain will be felt in
some parts of the banking system. Analysts say European
banks with large mortgage
books are most likely to have
to bolster capital buffers.
count for only about 2% of
total wealth in the region,
Mr. Thiam said.
“There’s so much growth
to go for. There’s no way
we’re going to run into each
other,” he said.
To succeed, Mr. Thiam, 55
years old, must integrate his
smaller investment bank into
a one-stop shop for wealth
management, lending and
advisory services. An example: A client in Southeast
Asia invested $245 million
with Credit Suisse’s wealth
managers. He then hired it
to finance construction of an
$850 million factory. The investor is using the bank to
launch an initial public offering in two years’ time.
ly
.
LONDON—Tidjane Thiam
is putting the “Suisse” back
into Credit Suisse.
Two years into a threeyear overhaul, the Credit
Suisse Group AG chief executive has returned the bank
to its Alpine roots by building up its Swiss unit and,
more important, expanding
its management of wealthy
clients’ money, long a staple
of Swiss banks.
The process has been
rocky because it meant scaling back investment banking
and moving the bank’s power
centers from New York and
London to Zurich, while selling toxic assets and settling
years-old legal claims. As a
result, Credit Suisse posted
losses in 2015 and 2016.
But it has paid off recently,
with profit this year of 1.1 billion Swiss francs ($1.1 billion)
through Sept. 30 on 4% revenue growth. After battering
the bank’s stock price last
year amid doubts over its
strategy, investors have lifted
shares by nearly 70% since
mid-2016. Still, they remain
30% below from when Mr.
Thiam launched the strategy
in October 2015.
That is largely because of
$10 billion in new equity the
bank issued to boost capital,
partly so that it could hang
on to its prized Swiss unit.
Its total market capitalization is back where it was before the revamp began.
“Based on our heritage,
Swiss identity and our
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY BRIAN BLACKSTONE
While U.S. banks securitize a
large chunk of mortgages off
their balance sheets, European
banks usually hold on to them.
These lenders have traditionally assigned low probabilities
that homeowners will default,
thus reducing the amount of
capital they hold against mortgages. This could have to be
raised, in particular in Nordic
countries, analysts say.
Citigroup analysts have estimated that the 72.5% floor
would force European banks to
raise €162 billion ($191 billion).
However, investors are sanguine, saying the hit could be
offset by local regulators reducing discretionary buffers
they force banks to hold, the
analysts say.
Heard: Banks dodge a bullet
from global capital fight... B12
Bank Fires
Adviser on
Conduct
BY LIZ HOFFMAN
Morgan Stanley fired former
Congressman Harold Ford Jr. as
a senior adviser to the firm after
investigating a claim of inappropriate conduct.
A spokeswoman for the Wall
Street bank said Mr. Ford had
been fired for “conduct inconsistent with our values and in violation of our policies.” A person
familiar with the matter said the
firm had received and verified at
least one complaint he had behaved inappropriately toward a
woman.
The firm fired him after investigating a complaint that he
had made inappropriate forcible
advances toward a woman during a meeting several years ago,
according to the person familiar
with the matter. The woman
didn’t work at Morgan Stanley
but met with Mr. Ford in his
professional capacity at the firm,
and recently flagged the incident
to bank officials, this person
said.
Mr. Ford, whose firing was
earlier reported by the Huffington Post, said in a statement:
“This simply did not happen. I
have never forcibly grabbed any
woman or man in my life.” He
said that his accuser is a journalist and that he met her “at the
direction of [Morgan Stanley]
for business purposes.” A lawyer
for Mr. Ford called his firing “a
matter of convenience during a
hyper-sensitive time.” Mr. Ford
joined Morgan Stanley in 2011 as
a senior adviser, a role that typically involves communicating
with clients and appearing at
firm events. Mr. Ford also serves
as a political analyst for MSNBC.
A representative for MSNBC
wasn’t available to comment
—Peter Rudegeair contributed
to this article.
Chinese Insurer Ping An Becomes No. 2 Shareholder at HSBC
BY JULIE STEINBERG
One of China’s biggest insurers has become the secondlargest shareholder of HSBC
Holdings PLC, but it won’t influence how the U.K.-based
bank is run, HSBC’s departing
chief executive, Stuart Gulliver, said Thursday.
Ping An Insurance (Group)
Co. of China Ltd.’s investment
is a financial move and not a
strategic one, Mr. Gulliver told
reporters at an event in Shenzhen, after the Chinese insurer
said late Wednesday that its
stake in HSBC rose to more
than 5%.
Mr. Gulliver said the bank
welcomed the investment and
had been having regular conversations with Ping An, which
began building its stake in the
second quarter of last year.
The investment by Ping An’s
asset-management unit, which
wasn’t funded by the insurer’s
equity, makes Ping An HSBC’s
second-largest shareholder after BlackRock Inc.
The world’s largest insurer
by market capitalization said it
bought a total of 1.02 billion
HSBC shares through the
southbound Stock Connect
program, which allows mainland Chinese companies to buy
Hong Kong-listed shares. Ping
An said the investment was
driven by HSBC’s dividends
and reflects its principle of
matching assets and liabilities.
The investment also marks
a reversal of Ping An’s ties
with HSBC, which in 2012 sold
its 15.6% stake in the insurer to
a conglomerate controlled by
Thai tycoon Dhanin Chearavanont for $9.39 billion.
Mr. Gulliver also outlined
HSBC’s growth plans for
southern China’s Pearl River
Delta region, which is the fo-
cus of the bank’s Asia strategy.
HSBC plans to employ about
5,000 staff at its branches in
Guangdong province by 2020,
more than double its current
head count.
Separately, HSBC will boost
head count at its new securities joint venture in China to
about 300 employees, from
about 100 currently. The joint
venture with Qianhai Financial Holdings Co., in which
HSBC owns a 51% stake, allows
the bank to underwrite initial
public offerings and trade securities and bonds.
The planned expansion in
China is part of the bank’s
pivot to Asia announced in
2015. Mr. Gulliver said he expects the Pearl River Delta region to add $1 billion in profit
before tax in the next five
years and generate annual
profit before tax of $500 million subsequently.
HSBC Qianhai Securities
Ltd. is expected to provide a
positive return on equity in
five years, Mr. Gulliver said
during the joint venture’s
launch Thursday but declined
to provide figures.
HSBC was the first foreign
bank to win approval to oper-
ate a majority-owned jointventure securities company in
China. It did so under a special
arrangement for Hong Kongfunded financial institutions.
Last month, however, Chinese
authorities said all foreign
companies would be allowed
to hold majority stakes in Chinese securities firms.
Mr. Gulliver brushed off
suggestions of emerging competition from Western banks,
saying HSBC has a head start
in getting its joint venture off
the ground and hiring staff.
—Joanne Chiu
contributed to this article.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | B11
* * * *
MARKETS
Gold Slips
To Lowest
Point Since
Summer
7%
The industrial sector rose 0.9% Thursday in the S&P 500, and Boeing was one of the biggest contributors to the Dow industrials.
Stocks Get Lift From Industrials
BY MICHAEL WURSTHORN
AND GEORGI KANTCHEV
pected next week to raise interest rates for a third time
this year, and most economists expect multiple rate increases again next year.
The interest-rate outlook
has been one of the main factors that has pulled gold
nearly 7% off its year-to-date
highs from early September.
The dollar rebounding from
multiyear lows also has been
bearish for gold because gold
and other dollar-denominated
commodities become more expensive for overseas buyers
when the U.S. currency becomes stronger.
The WSJ Dollar Index,
which tracks the dollar
against a basket of 16 other
currencies, rose 0.3% Thursday.
Analysts have said they expect gold prices to fall ahead
of next week’s Fed meeting,
then rebound afterward, a
pattern they have seen when
the central bank had raised
rates previously.
“I’m absolutely not surprised we’re seeing a little bit
of weakness,” said George
Milling-Stanley, head of gold
strategy at State Street Global
Advisors. “This is a very well
established pattern,” he said.
Rising shares of Boeing and
other industrial companies
pushed major U.S. indexes
higher.
The gains Thursday put U.S.
stocks on the rebound after recent declines. The S&P 500
logged
deTHURSDAY’S clines in the
MARKETS
previous four
trading sessions, while
the Dow Jones Industrial Average had fallen for two consecutive sessions. The Nasdaq
Composite fell in three of the
past four.
Some analysts and investors
said they were optimistic that
Republicans would complete a
tax overhaul and lawmakers
would reach a deal to avoid a
government shutdown, issues
that they said have weighed on
stocks in recent days. Late
Thursday, Congress passed a
two-week stopgap spending bill,
avoiding an imminent shutdown.
“People are now coming in
to buy names that have been
under pressure,” said Larry Peruzzi, managing director of international equity trading at
Mischler Financial.
The Dow industrials gained
70.57 points, or 0.3%, to
24211.48. The S&P 500 rose 7.71
points, or 0.3%, to 2636.98,
while the Nasdaq Composite
added 36.47 points, or 0.5%, to
6812.84. It was the biggest gain
Gains in Caterpillar and Boeing gave U.S. stocks a boost Thursday.
2.5%
2.0
its way through Congress.”
Some analysts expect stocks
to continue to wobble until
there is a meaningful development on tax cuts. The Senate
voted Wednesday to start formal negotiations with the House
to advance final legislation.
Investors also are looking
for further clarity on the U.S.
economic picture, with monthly
employment data due Friday.
Economists polled by The Wall
Street Journal expect payrolls
rose by 195,000 last month.
The number of Americans filing
applications for new unemployment benefits fell last week, ac-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The decline in gold prices from
2017 highs in early September
Industrial Strength
Caterpillar
1.5
Boeing
1.0
0.5
0
S&P 500
–0.5
–1.0
9:30 a.m. 10
11
noon
1
Source: WSJ Market Data Group
in a week for all three indexes.
Shares of industrial companies rose 0.9% in the S&P 500.
Boeing gained $3.70, or 1.3%,
to $281.97, making it one of
the biggest contributors to the
Dow. Shares of Boeing have
jumped 81% this year on a series of upbeat profit reports,
fueling much of the blue-chip
index’s 2017 gain. Caterpillar
added 2.55, or 1.8%, to 142.89.
Several airliners also rose.
Southwest Airlines gained
1.90, or 3.1%, to 63.02, after it
said capacity and traffic for
November rose, boosting its
outlook for the fourth quarter.
American Airlines Group rose
1.27, or 2.6%, to 50.88, while
2
3
4
THE WALL STREET JOURNAL.
Alaska Air Group added 1.54,
or 2.3%, to 69.37.
Shares of technology companies in the S&P 500 rose 0.6%
to extend their gains through a
third consecutive day. Tech
companies had fallen in prior
sessions, as investors sold
those stocks and moved into
shares of companies they expected to benefit more from
Republicans’ sweeping tax
overhaul. Industrial firms also
had been struggling this month.
“The markets are in a treading-water phase,” said Tony
Roth, chief investment officer
for Wilmington Trust. “Markets are demonstrating some
patience as this tax bill makes
Treasury Plans to Sell $140 Billion in Debt
The Treasury Department will
auction $140 billion in securities
next week. Details (all with minimum denominations of $100):
Monday: $45 billion in reopened three-month bills, dated
Dec. 14, 2017, and maturing
March 15, 2018. The debt is a
reopening of an issue first sold
on Sept. 14, 2017. Cusip number:
912796NW5.
Also, $20 billion in reopened
nine-year, 11-month notes, dated
Dec. 15, 2017, and maturing Nov.
15, 2027. The debt is a reopening of an issue first sold on Nov.
15, 2017. The coupon is 2.250%.
Cusip number: 9128283F5.
For both securities, noncompetitive tenders must be received by noon EST Monday and
competitive tenders by 1 p.m.
Cryptocurrency
Miner Is Robbed
no
By Alexander
Osipovich,
Gunjan Banerji
and Julie Wernau
n-
JPMorgan, Others Put Off Bitcoin Futures
As investors rush into bitcoin, some big Wall Street
banks are hitting the brakes.
JPMorgan Chase & Co.,
Bank of America Corp.’s Mer-
rill Lynch, Citigroup Inc. and
Royal Bank of Canada are
telling customers that they
won’t offer them access to the
first bitcoin futures market
when it goes live Sunday, people familiar
with
the
CURRENCIES
matter said.
Goldman Sachs Group Inc., the
largest U.S. futures broker,
will offer access but only for
certain customers, a person
familiar with the situation
said. ABN Amro Group will
be handling trades for “a
small selected group of professional clients,” a spokeswoman for the Dutch bank
said in an email. Morgan
Stanley and Société Générale SA are still evaluating
their approach to bitcoin futures, other people said
Thursday.
Banks play a key role in facilitating futures trades for
hedge funds and other big
trading firms. If they don’t
provide access to the new
market, some of their customers might be unable to place
bets on bitcoin futures.
The banks may change their
minds and start offering the
service. Still, their hesitation
could put a damper on the
hotly anticipated launch of bit-
More than $70 million
worth of bitcoin was stolen
from a cryptocurrency-mining
service called NiceHash following a security breach, causing
the company to halt operations
for at least 24 hours.
Andrej P. Škraba, head of
marketing at NiceHash, said
that approximately 4,700 bitcoins had been stolen from a
bitcoin wallet, an online account
that stores the digital currency.
Bitcoin wallets, like other online
bank accounts, have been targets of hackers in the past.
“It was a professional attack,” Mr. Škraba said. He declined to elaborate, saying more
information will be disclosed at
a later date.
In a six-minute video posted
on Facebook, Marko Kobal, chief
coin futures, which proponents see as a huge step forward in the evolution of the
digital currency.
JPMorgan plans to assess
the liquidity and volatility
over the next few weeks and
may provide access at some
point, a person familiar with
the matter said.
Cboe Global Markets Inc.,
a Chicago-based exchange operator, plans to open the first
U.S. bitcoin futures market
this weekend, less than 10
days after regulators gave it
the green light—a tight timeframe for many firms to get
comfortable with the new
executive and co-founder of
NiceHash, said either a hacker
or group of hackers started infiltrating its internal systems
through a compromised company computer on Tuesday at
6:18 p.m. Eastern Time. Within
two hours, funds were stolen
from accounts, he said.
NiceHash has notified major
exchanges and mining pools
about the breach “to help us
track and possibly even recover
the stolen funds,” Mr. Kobal
said.
“We are doing really everything we can right now. However, this will take time,” he
said. “As soon as we have a solution in place, we’ll reach out,
hopefully in the next few days.”
The hack came as the price
of bitcoin surged again to a record. Through Thursday morning
in New York, the digital currency
soared 40% in about 40 hours,
hurdling through five separate
$1,000 barriers. Early Thursday
evening, it crossed above
$17,000, according to research
site CoinDesk. At current levels,
those stolen bitcoin would be
worth about $78 million.
“It’s a bad thing to happen,
but I think it’s going to be forgotten about pretty quickly,”
said Arthur Hayes, founder and
chief executive of BitMEX, a
bitcoin-derivatives exchange in
Hong Kong, of the theft. “Everyone is still high-fiving each
other” over the recent gains.
Bitcoin’s rise from around
$1,000 at the start of the year
has attracted crowds of eager
small-time investors to what
had originally been a curiosity
for techies.
NiceHash said it is investigating the breach and is cooperating with authorities as it
seeks to restore the service
“with the highest security measures at the earliest opportunity.”
—Steven Russolillo
product, market participants
say. Cboe’s larger crosstown
rival, CME Group Inc., is set
to launch a competing bitcoin
futures market on Dec. 18.
A Cboe spokeswoman said
Sunday’s launch would go
ahead as planned. The exchange declined to release a
list of banks prepared to handle trading in its bitcoin futures, citing confidentiality.
Bitcoin smashed through
the $16,000 mark on Thursday,
only a day after passing
$12,000, according to CoinDesk. It was trading at
$968.23 at the start of the
year.
The rapid increase has
made it difficult for more buttoned-up Wall Street firms to
ignore the digital currency, despite concerns over its uncertain legal status and links with
illicit activity.
Now, banks are trying to
catch up with surging investor
interest, while managing the
risks associated with bitcoin’s
volatility.
To access the futures market, a trader needs to open an
account with a brokerage. The
broker can be liable for losses
if that trader’s bets go wrong.
Many futures brokerages
are grappling with how to
cording to the Labor Department, suggesting the labor
market continues to tighten.
“We have a wonderful tailwind from strong corporate
earnings and a good economy,
but for now, the market will
take its cues from political developments,” said Eric Wiegand, senior portfolio manager
at U.S. Bank Private Wealth
Management.
After climbing 1.4% Thursday, the Nikkei was up 1.2% at
midday Friday, helped by a decline in the yen. Hong Kong,
South Korea and Australia
markets were up early Friday.
ly
.
Gold prices fell to their
lowest level since late July,
weighed down by a stronger
dollar and investor concerns
about higher interest rates.
Gold for February delivery
declined
COMMODITIES 0.8%
to
$1,256.10 a
troy ounce
on the Comex division of the
New York Mercantile Exchange on Thursday.
Prices had stayed between
roughly $1,265 and $1,300 for
much of the past month, but
analysts have said headwinds
for the precious metal are
coming into focus ahead of
the Federal Reserve’s meeting
next week.
Gold struggles to compete
with yield-bearing assets like
Treasurys as borrowing costs
rise. The Fed is widely ex-
JASON REDMOND/REUTERS
BY AMRITH RAMKUMAR
AND DAVID HODARI
Big Brokers
Banks dominate the list of the
largest U.S. futures brokers.
Futures broker market share
Goldman
Sachs
14.2%
JPMorgan
11.3
Merrill
Lynch
Morgan
Stanley
Société
Générale
9.5
9.3
8.5
Citigroup
5
UBS
4.9
Credit
Suisse
Barclays
Archer
Daniels
Midland
4
3.6
2.9
Note: Based on average customer assets
from January to September
Sources: Tabb Group; CFTC
THE WALL STREET JOURNAL.
handle the risks of bitcoin futures due to the volatility of
the digital currency, brokers
said.
Banks in their role as futures brokers act as a buffer
to counterparties, so they are
on the hook should their clients suffer losses they can’t
pay.
In assessing whether to
support bitcoin futures, brokers need to evaluate their relationship with clients and figure out whether to charge
higher amounts to backstop
bitcoin futures trades—an extraordinarily difficult task
given bitcoin’s volatility.
Also Monday, $39 billion in
six-month bills, dated Dec. 14,
2017, and maturing June 14,
2018. Cusip number: 912796PL7.
In addition, $24 billion in
three-year notes, dated Dec. 15,
2017, and maturing Dec. 15,
2020. Cusip number: 9128283L2.
For both securities, noncompetitive tenders must be received by 11 a.m. Monday and
competitive tenders by 11:30 a.m.
Tuesday: $12 billion in reopened 29-year, 11-month bonds,
dated Dec. 15, 2017, and maturing Nov. 15, 2047. The debt is a
reopening of an issue first sold
on Nov. 15, 2017. The coupon is
2.750%. Cusip number: 912810RZ3.
Noncompetitive tenders must
be received by noon Tuesday and
competitive tenders by 1 p.m.
Treasury
Prices Drop
As Shutdown
Worries Ease
BY DANIEL KRUGER
U.S.
government-bond
prices weakened after signs of
progress on efforts to avert a
government shutdown.
The yield on the 10-year
Treasury note rose to 2.374%
on Thursday from 2.330%
W e d n e s d a y.
CREDIT
Bond yields rise
MARKETS when prices fall.
The largest
one-day
yield
gain in almost a month came
after reports that congressional leaders were meeting to
discuss passing a temporary
spending plan that would
stave off a government shutdown. Some analysts said the
threat of a shutdown had
prompted recent buying.
The rise in yields also came
ahead of Friday’s jobs report
and next week’s meeting of
the Federal Reserve, when officials are expected to raise interest rates. The 10-year yield
has remained within a relatively narrow range in recent
sessions.
Central-bank officials have
signaled that they will raise
rates at their Dec. 13 meeting.
They also will release their
forecasts for the economy and
the path of interest-rate policy
in coming years. Investors will
be watching to see whether
central bankers revise the
forecast they issued at their
September meeting for three
interest-rate increases in 2018.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B12 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
* *
HEARD ON THE STREET
Email: heard@wsj.com
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Buying Stocks: The Case For and Against
Profit growth is strong, particularly outside of the U.S. where
many countries' economic recoveries are in early stages.
Profits, change from a year earlier*
35%
30
25
U.S. (rest of world)
U.S. (domestic)
Stoxx Europe 600
Japan Nikkei 225
20
15
10
5
0
–5
–10
–15
–20
–25
2015
’16
’17
U.S. stock-market valuations look increasingly stretched, but in other parts
of the world stocks don't appear as expensive relative to recent history.
Forward price/earnings ratio
20
18
ly
.
S&P 500
Nikkei 225
16
Stoxx Europe 600
14
12
10
8
2012
’13
’14
’15
’16
’17
The global equity risk premium—what investors get paid for taking on the extra risk of stocks—has
fallen as markets around the world have risen, but is still above its postcrisis lows.
MSCI World equity risk premium
7%
MSCI year-to-date performance by country, in U.S. dollars
50%
Austria
6
5
43
China
4
3
41
Korea
2
24
Germany
1
0
17
United States
1996
’05
2000
’10
’15
*Data are quarterly
Sources: Commerce Department (U.S. profits), FactSet (price/earnings ratio); Citigroup (premium); MSCI (performance)
THE WALL STREET JOURNAL.
n-
Samsung’s Rally Can’t Live on Memories
Flash Sale
Price for memory chips
no
Even memories can’t last forever—as investors in Samsung
Electronics should know.
Doubts about the Korean technology giant’s near-term prospects
rose last week after analysts at
Morgan Stanley pointed to some
issues that might crimp its growth.
Since then, Samsung’s shares have
dropped 8.5%.
The company, the world’s largest maker of memory chips, is still
enjoying strong demand from data
centers as companies use ever
more cloud services. Its profit and
share price have both doubled in
the past two years. But skepticism
that Samsung can continue to
forge ahead so quickly are justified, given the sector’s weakening
fundamentals.
The situation looks particularly
bad in one type of memory chip
called NAND, which is used for
$8
NAND
6
4
2
DRAM
0
2016
’17
Source: DRAMeXchange
THE WALL STREET JOURNAL.
storage. Samsung has been a leader
in using a technology called 3DNAND, which stacks chips over
each other to increase their capacity, but others like Korea’s SK
Hynix and Micron Technology in
the U.S. are catching up. As manufacturers pack more storage capacity into a single chip, global memory supply, in terms of gigabytes
per wafer, could grow by 45% next
year, outpacing demand growth,
analysts at Bernstein reckon. In
turn, NAND prices, which are up
41% this year, could start falling
next quarter, causing profits across
the NAND-producing industry to
slip by 3% next year.
The good news for Samsung is
that it still enjoys lower costs and
a bigger market share than its rivals, due to its technological edge.
Still, its profits seem unlikely to
keep growing at their current pace
given the backdrop. Samsung also
could be buoyed by the continued
strong sales of another type of
memory chip called DRAM used in
computer processing, which will
likely contribute over 42% of its
operating profit this year, according to Morgan Stanley. The market
there is more consolidated with
three dominant companies: Samsung itself accounts for half of
global production, meaning it can
be more disciplined on supply
growth.
Samsung’s enterprise value now
stands at 4.2 times its earnings before interest, taxes, depreciation
and amortization. It is still cheap
compared with global peers, but
above its five-year average of 3.5
times, according to S&P Global
Market Intelligence. New demand
for chips from artificial intelligence and cloud computing may
mean memory chip cycles are less
pronounced than before. This
means Samsung’s shares might not
fall back to their 2015 level soon,
but repeating their rally this year
will be a struggle.
—Jacky Wong
Banks Dodge a Bullet From Global Capital Fight
After years of intense analytical
work and high-level political
battles, reforms to global bank
capital rules are finished. And what
is the upshot? Most banks already
hold more than enough capital.
A small number of banks will
need to cut risk or raise capital, but
they have 10 years to do it. Most
European banks, including those
thought likely to be hardest hit—
Deutsche Bank, BNP Paribas and
Société Générale—saw their shares
rise after the announcement late
Thursday.
Investors and many top
executives will wonder whether it
was worth all the bother. Big
European banks were the main
target of the fight to tighten up the
so-called Basel III capital rules,
which were designed after the
Why buy stocks?
For the past year, investors
have had ready answers to that
question. Because a tax cut might
be coming. Because the U.S. economy was doing a little better, and
the global economy a lot better,
bolstering profits. Because low inflation was preventing the Federal
Reserve from tightening too
quickly. Because other central
banks were vacuuming up bonds.
Because there was no alternative.
But why buy stocks now? If the
market is to keep on rising, there
will need to be new answers.
The tax cut isn’t one of them.
Its passage, and the generous cut
to the corporate tax rate, now
seem all but a fait accompli, with
the only bone of contention
whether it goes into effect next
year or in 2019. Whatever boost
the cut will provide to earnings
and the economy should be all but
priced into the market.
Foreign profits can be taken off
the list too. The economic surprise
of 2017 hasn’t been how good the
U.S. economy is but how well the
rest of the world has done. Barclays economists estimate global
gross domestic product will rise
3.9% this year, better than last
year’s 3.3% gain and better than
the 3.5% they predicted at the outset of the year. That helped profits
at multinationals in particular.
But the profit boost from
abroad is unlikely to be as powerful next year. That is because it is
the early stages of an economic
upswing that profits really boom.
Scratch subdued inflation, too.
Although it remains low, pressures
are building. The pickup in global
demand and the dollar’s weakness
are pushing up commodity and import costs. And with the unemployment rate on pace to slip below 4% soon, wages are likely to
heat up. The Fed seems likely raise
rates at least three times next
year, and perhaps more.
The Fed also will continue the
process of shrinking its balance
sheet that it commenced in October. That has had little effect on
markets so far in part because the
initial amount of bonds and other
assets it has allowed to roll off is
so small, and in part because the
European Central Bank and Bank
of Japan have continued their asset-buying programs. But the Fed
plans to raise the amount it rolls
off next year, and the ECB expects
to wind down its asset-buying program by the end of 2018.
There is the possibility that
some new reason for stocks going
higher, such as surprisingly strong
growth, will emerge in coming
months. Until then, investors are
right to fret about the bull market’s staying power.
—Justin Lahart
co Fo
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Why buy stocks?
There are plenty of reasons to
wonder about the longevity of the
equity bull market. Given expensive markets, years of monetarypolicy experimentation and geopolitical uncertainty, it is possible to
concoct any number of unpleasant
scenarios. But there is also a niggling question out there: What if
stocks just keep going up?
After all, any number of challenges in 2017—the risk of a populist shock in a European election,
nuclear saber-rattling from North
Korea, or the fear of rising protectionism, for instance—have passed
without incident or failed to unsettle markets for more than a short
while.
Worriers would have gotten it
wrong. Stock-market returns have
raced far ahead of those on bonds.
In the U.S., the S&P 500 has a total
return of just under 20%, versus
2.5% for U.S. Treasurys.
And the environment still looks
friendlier for stocks than bonds.
Global growth is broad and momentum appears good. Earnings
have recovered and are forecast
to rise further around the world
in 2018. U.S. stocks may look
stretched based on rising earnings multiples, but in Europe, it
is earnings that are doing the
heavy lifting. Many emergingmarket economies are much earlier in the cycle too. Investors
might need to look further afield
for returns.
Importantly, equities remain a
place where investors still get paid
for taking risk. The MSCI World
equity risk premium has fallen, but
still stands at 3.8%, above its postcrisis lows and its 2007 level of
3.3%, according to Citigroup.
By contrast, low bond yields
and tight corporate-credit spreads
offer little room for error.
A very sharp correction in bond
markets would be a problem, but
so far financial conditions have remained very loose, supporting
risky assets such as stocks. And
while higher rates would raise the
cost of new funding for companies,
there has been ample opportunity
to refinance at ultralow yields.
Yet money has continued to pile
into bonds. The seemingly insatiable search for yield signals a persistent imbalance between demand
and supply. Equity flows, by contrast, have been more lackluster
since the crisis.
It is bonds, not equities, that
look more exuberant. That turns
the usual perception of the two asset classes on their head. It is hard
to see how bonds produce particularly strong returns from here. Equities might yet be the beneficiary,
and continue climbing the wall of
worry.
—Richard Barley
2008 financial meltdown. The
Europeans’ use of sophisticated
models to assess the risk of their
assets undermined the credibility
of the existing rules by assigning
wildly different capital requirements to similar types of loans.
These models also allowed them
to support much larger balance
sheets on less equity than U.S.
rivals, which many in the U.S. saw
as unfair. A big part of the transAtlantic difference is explained by
Europeans holding lots of safe,
prime mortgages on their balance
sheets, which require less capital,
while U.S. banks tend to sell those
to Fannie Mae and Freddie Mac.
But that hasn’t helped the
perception of Europeans somehow
cheating the rules.
The rule makers have reached
their goal of restricting the
benefits big banks can get from
using risk models. They have set
their floor on how big a capital
discount big banks can attain with
their techniques versus unsophisticated standard models. But they
managed to do this only by easing
the rules a little for everyone else.
The world’s 71 biggest banks are
short €27.6 billion ($32.6 billion) of
common equity to meet the
finalized rules if they were fully
implemented today, according to
the Basel Committee for Banking
Supervision, which sets the rules.
However, banks won’t have to begin
to think about meeting them until
2022 and then won’t have to hit
their targets fully until 2027.
For context, these 71 banks made
pretax profits of nearly €200
billion in just the second half of
2015. The banks making the most
profits and those most in need of
capital aren’t necessarily the same
ones. For example the 12 biggest
Europeans are together short of
€16.4 billion in equity. But everyone
has lots of time to adjust.
In the end, politics moved on.
The Trump White House focused on
lightening regulation for banks,
while European politicians, worried
about their slow economic
recovery, threatened to ignore the
changes if they didn’t like them.
What really matters now is that
politics doesn’t start pushing the
regulatory pendulum rapidly back
in the other direction. Debt levels
are still very high and banks take
on big risks. Another crisis is far
from impossible.
—Paul J. Davies
GE Addresses
Shareholders’
Frustrations
There still is little to celebrate
at General Electric Co., but new
management is passing early tests
in its bid to clean up the mess. GE
announced Thursday morning that
it is laying off 12,000 employees in
its power division.
The struggling conglomerate
cited numerous problems such as
overcapacity, lower utilization, and
greater use of renewable energy in
a news release and predicted that
those challenges would continue.
GE has exacerbated its financial
and credibility problems with
poorly timed acquisitions and forecasts that proved absurdly optimistic.
Shareholders have registered
their anger. The stock is down by
more than 40% this year in a raging bull market for industrial
shares.
But Thursday’s move, grim as it
is, is a solid first step in making
things right with investors.
Beyond its financial impact,
Thursday’s move is a sign that
new Chief Executive John Flannery
has gotten the message.
He acknowledged the company’s
mismanagement of power during
the company’s investor day last
month, while pledging to improve
the company’s “say/do ratio” and
noting there were steps that GE
would take to fix the problem.
Making investors forget this awful year will be a long-term project, but at least one insider seems
to think the future will be brighter
than the recent past.
GE director and noted value investor James Tisch bought $54
million in GE stock on the open
market last month, at roughly the
current stock price.
—Charley Grant
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Chef Daniel Boulud:
from farmhouse
to food empire
M3
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
‘What makes the desert beautiful,’
said the little prince, ‘is that
somewhere it hides a well.’
—Antoine de Saint-Exupery
|
SALES
THE WALL STREET JOURNAL.
FIXTURES
|
BROKERS
Friday, December 8, 2017 | M1
FROM LEFT: MICHAL CZERWONKA FOR THE WALL STREET JOURNAL; CHRISTOPHER MAYER PHOTOGRAPHY
© 2017 Dow Jones & Company. All Rights Reserved.
|
Luxury in No Man’s Land
ly
.
THE NEW PIONEERS Developers are taking advantage of the fact that many of today’s high-end buyers are less resistant to the harsher realities of urban living. Lawyers Jessica Alikin and Albert Alikin,
above left, moved to a less-gentrified section of Los Angeles for walkable commutes and to be part of a growing area; the lobby of Ten50, the Alikins’ building, above.
JASON HENRY FOR THE WALL STREET JOURNAL (2)
MATT FURMAN FOR THE WALL STREET JOURNAL (BOULUD PORTRAIT)
co Fo
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Developers in competitive urban real-estate markets are building in seedy
neighborhoods and pitching their projects as the next big thing; call it ‘grit-tastic.’
SETTLING IN Tanya Fruehe and husband Zachary Wesley, above right, rent an apartment for roughly $3,000 a month in San Francisco’s mid-Market neighborhood. Ms. Fruehe said she initially found her
neighborhood ‘frightening,’ but said the complex’s 1-acre public plaza, above left, its 24-hour security and the growing number of occupants in the area make her feel safe.
BY KATY MCLAUGHLIN
San Francisco-based developer Build means this
literally: “People defecate and urinate on our
building site every day,” he said. One positive
development: A nearby liquor store that sold
vodka-by-the-shot recently closed, he noted.
Please turn to page M8
n-
ONE OAK, A 39-STORY condominium building
proposed for San Francisco’s mid-Market Street
neighborhood, plans to offer over 300 luxury
condos in 2020. A 1,500-square-foot two bedroom within walking distance of the San Francisco Opera and Davies Symphony Hall will
likely list for over $2.5 million.
For now, though, said developer Loring Sagan, the place “truly stinks.” The co-founder of
DON’T PARK IT HERE
no
INSIDE
Car-share programs at some new high-end developments encourage homeowners to forego car ownership,
easing traffic and lowering building costs for developers; one building offers a fleet of four luxury vehicles and a boat
BY ALINA DIZIK
luxury vehicles parked near
the valet area. Rates run
from $12 to $22 per hour,
and the fleet gets about 100
rentals per month.
The program encourages
occasional drivers to forego
ownership and eases some
traffic within the garage,
says Carl Shannon, senior
managing director at Tishman Speyer. “It has made it
less imperative [for buyers]
to have their own private automobile, says Mr. Shannon
of the 656-unit building.
Luxury developers are inPlease turn to page M16
AFTER IRMA
Despite storm, nearly
$67 million sale M2
STEELBLUE (2); VIVIAN JOHNSON FOR THE WALL STREET JOURNAL (HOME MAKEOVER)
AT LUMINA, a 42-story
condo building in San Francisco, homeowners pay anywhere from $900,000 to $15
million for a luxury residence with a one-car limit
per unit. Alternatively,
homeowners can ditch the
car, get a credit of $10,000
and rent one of the building’s eight luxury cars when
the need arises.
The developer, Tishman
Speyer, partnered with Audi
on a pilot program called
Audi at Home, in which residents can use an app to rent
one of the building’s eight
LICENSE TO DRIVE At San Francisco’s Lumina, above, residents can use an app to rent a car from
the building’s private fleet of eight Audis, like the one at left.
HOME MAKEOVER
Inside a $2 million
renovation M10
THE BIG EASY
Luxury living in New
Orleans M4
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
M2 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
MANSION
PRIVATE PROPERTIES
PRIVATE BROKERAGE
Hurricane-Damaged Estate Sells
The Right Broker Makes All the Difference.
A SAVILLS
INTERNATIONAL
ASSOCIATE
STRIBLING.COM
FROM GAS EXPLOSION TO $32 MILLION TOWNHOME
It is a rare find: a newly constructed townhome in New
York’s Upper East Side Historic
District, which is protected by
the city’s landmarks laws.
Seeking $32.5 million, the
home was able to be built because its predecessor was destroyed by a highly publicized
gas explosion in 2006.
Nicholas Bartha, a 66-yearold internist, died as a result of
the blast, according to the Office of Chief Medical Examiner.
The medical examiner ruled the
incident a suicide. At the time,
Dr. Bartha was involved in a divorce battle with his wife over
who should keep the house, legal records show.
The Beaux Arts-inspired
mansion, at 34 East 62nd
Street, features a French limestone facade capped with a
mansard roof. The five-bedroom home, seen in a rendering here, spans 9,200 square
feet. It was built by developer
Woodbine & Co., who bought
the site for $11.9 million in
2015 from developer Janna
Bullock, records show.
Nikki Field and Patricia
Wheatley of Sotheby’s International Realty have the listing.
—Katherine Clarke
co Fo
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IT’S THE
DIFFERENCE
BETWEEN
LAUNDRY IN
THE APARTMENT
AND LAUNDRY
AROUND
THE CORNER.
Real Estate affiliate.
While the buildings on the
estate remained mostly intact,
the property’s lush grounds,
which included a coconut
grove, approximately 600 different species of plants and a
EAST HAMPTONS HOME WITH
DARK PAST FINDS A BUYER
A home in East Hampton,
N.Y., that was the site of a
high-profile 2001 murder has
sold for more than $8 million.
The sellers were twins
Greg and Alexa Ammon, who
were children when their
adoptive father, wealthy financier R. Theodore Ammon,
was found bludgeoned to
death in the home, according
to court documents. The late
Mr. Ammon had been a partner at private-equity firm
Kohlberg Kravis Roberts
(now known as KKR).
The twins hadn’t used the
house much and had been
renting it out; for a summer
no
n-
YOU KNOW WHICH IS
BETTER. REALTOR.COM HAS
20% MORE ACTIVE LISTINGS
IN NYC THAN STREETEASY.
EX-MIAMI HEAT STAR CHRIS BOSH
LISTS IN MIAMI FOR $18 MILLION
the property could fetch
about $250,000, according to
listing agent Judi A. Desiderio
of Town & Country Real Estate. They put the home on
the market about a year ago
for $12.7 million, Ms. Desiderio said. Most recently, it had
been asking $10.995 million,
and sold for somewhere “in
the mid 8s,” she said.
Greg and Alexa Ammon
couldn’t be reached for comment. Greg Ammon made a
2012 documentary film, “59
Middle Lane,” about the murder and the twins’ search for
their birth parents.
—Candace Taylor
Mr. Bosh paid $12.333 million for the property in 2010,
shortly after signing with the
Heat, property records show.
The power forward—one of
the Heat’s so-called Big Three,
which included Dwyane Wade
and LeBron James— left the
team last year; he had suffered from medical issues related to blood clots.
The listing agent, Diane
Lieberman of ONE Sotheby’s
International Realty, said Mr.
Bosh was selling for “personal
reasons.” He wasn’t available
for comment.
The interiors of the property are designed predominantly in a white palette,
which matches the exterior,
Ms. Lieberman said. She
noted that the furniture could
be sold with the property at
an additional cost.
—Katherine Clarke
See more photos of notable homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
THE LEGEND CONTINUES AT OCEAN REEF
©Compass Florida, LLC. Equal Housing Opportunity. All information furnished regarding property for
sale or rent or regarding financing is from sources deemed reliable, but Compass makes no warranty
or representation as to the accuracy thereof. All property information is presented subject to errors, omissions,
price changes, changed property conditions, and withdrawal of the property from the market, without notice.
DISCLAIMER Oral representations cannot be relied upon as correctly stating representations of the developer.
For correct representations, make reference to this brochure and to the documents required by section
718.503, Florida statutes, to be furnished by a developer to a buyer or lessee. Obtain the property report
required by federal law and read it before signing anything. No federal agency has judged the merits or value,
if any, of this property. This offering is made only by the prospectus for the condominium and no statement
should be relied upon if not made in the prospectus. This is not an offer to sell, or solicitation of offers to buy,
the condominium units in states where such offer or solicitation cannot be made.
Basketball star Chris Bosh,
who played for the Miami
Heat, is listing his Miami
Beach home for $18 million.
The waterfront estate on
North Bay Road was built in
2009 and features an infinityedge pool, a boat dock, a covered outdoor kitchen, a gym
and a separate guesthouse. It
comprises 12,368 square feet
of interior living space, with
seven bedrooms—including one
in the guesthouse—and eight
bathrooms.
27 ULTRA-LUXURIOUS RESIDENCES,
I N C L U D I N G S I G N AT U R E H O M E S
DESIGNED WITH RALPH LAUREN
AND BOTTEGA VENETA INTERIORS.
THE LEGEND OF OCEAN REEF CLUB®
SPANS OVER 70 YEARS AND NOW
THE LEGEND CONTINUES WITH
121 MARINA.
3-6 BEDROOMS, 3650 SF - 6600 SF
O C E A N
R E E F
PRICED FROM $4,900,900.
121 MARINA CONCIERGE: 305.367.8883 INFO@121MARINA.COM 121MARINA.COM
FROM TOP: PIERRE CARREAU; SEAN MACNINTCH/SPOTLESS AGENCY; TONY CALARCO/JUMP VISUAL; ONE SOTHEBY’S INTERNATIONAL REALTY
Breathtaking & exquisitely finished 4803 SF
duplex with 972 SF private fully landscaped
garden. Truly unique. 6 bedrooms, 5.5 baths,
eat-in kitchen & formal dining room. $18.995M.
Web 17397143. Inez Wade 212.452.4439
tate Giraso for close to its $67
million asking price.
The sale is one of the most
expensive ever recorded on the
island, said listing agent Christian Wattiau of Sibarth Real
Estate, a Christie’s International
ly
.
Trophy Townhouse-Style Condo at 135 E 79th
On the Caribbean island of
St. Barthélemy, a longtime vacation spot for the rich and famous that was rocked by Hurricane Irma in September,
retired hedge-fund manager
Bruce Kovner has sold his es-
collection of gazebos, were
badly damaged in the hurricane, with many trees downed,
Mr. Wattiau said. The hurricane
delayed the closing of the deal,
which had been lined up since
April, because a payout had to
be worked out with Mr.
Kovner’s insurance company
for the landscaping, he said.
The 7½-acre property, located on the north side of the
island, was originally built by
banker Benjamin de Rothschild,
according to marketing materials for the property. Mr. Kovner
purchased it in 2005 and completed an extensive renovation,
Mr. Wattiau said.
Mr. Kovner, who founded
New York hedge fund Caxton
Associates, retired in 2011. He
was looking to sell the property
because he had recently completed a new home in Florida,
Mr. Wattiau said. Mr. Kovner
declined to comment.
—Katherine Clarke
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Friday, December 8, 2017 | M2A
NY
Uptown.
1110 Park Avenue
130 East End Avenue
Masterfully renovated full-floor,
5-bedroom duplex facing the
East River. | $10,500,000.
Arlene S. Reed, 212.439.5180
Andrea Wernick, 212.439.5193
Glamorous duplex
penthouse with expansive
wrap terraces. | $6,900,000.
Jane R. Andrews, 212.439.4536
925 Park Avenue
1095 Park Avenue
Grand pre-war, 10-room corner
duplex with sunny open views,
oversized windows and 3 woodburning fireplaces. | $8,695,000.
Annie Gruenberger, 212.439.4527
Gracefully renovated, spacious
Classic 8 corner home with
WBF in a luxury white-glove
co-op building. | $5,750,000.
June L. Gottlieb, 917.826.9996
co Fo
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Palatial 5BR PH in a new boutique lxury building w/ one of the only private
rooftop pools on Park Avenue. | $25,950,000. | Lisa Chajet, 212.439.5199,
Bonnie Chajet, 212.439.4540, Ronnie Lane, 212.439.4541
4 Sutton Place
ly
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THE WALL STREET JOURNAL.
210 West 90th Street
210 Central Park South
119 East 84th Street
139 East 63rd Street
527 East 72nd Street
Gracious pre-war 3-bedroom
with WBF overlooking superb
landscaped garden. | $3,550,000.
Wendy Greenbaum, 212.439.4542
Investor-friendly, renovated 2BR w/
balcony & park views. | $3,500,000.
Steven Gottlieb, 917.575.1225
Allison Chiaramonte, 646.248.0193
Lovely renovated 2-bedroom,
convertible 3BR home on
a tree-lined block. | $2,100,000.
Linda M. Lawrence, 917.612.1279
Sprawling sun-filled 2BR home with
a corner terrace and incredible
city views. | $2,150,000.
Judith Thorn, 212.327.9601
Unique floor-through, 2BR duplex on
a charming cul-de-sac. | $1,395,000.
Claire Groome, 212.439.4524
Angela Wu, 212.439.3819
200 Chambers Street
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Downtown.
42 West 9th Street
Beautifully renovated
2-bedroom in pristine
condition. | $2,750,000.
Rebecca I. Edwardson, 212.300.1826
no
High-floor, triple mint 2-bedroom
luxury condo with amazing
views. | $2,950,000.
Kemdi Anosike, 832.655.2328
53 Jane Street
15 Broad Street
250 Mercer Street
Luxurious and sunny corner
2-bedroom loft on a
high floor. | $2,290,000.
Renaud de Tilly, 347.614.6070
Unique 1BR loft with home
office, 11 ft. ceilings, modern
renovations. | $1,250,000.
Sheila Trichter, 212.439.4535
Historical 4-story townhouse in the West Village with 5 bedrooms,
modern renovations, and a private garden. | $7,695,000.
Samantha Rose Frith, 646.706.3794, Joél E. Moss, 917.412.2326
warburgrealty.com
upper east side | 654 Madison Ave., NY, NY 10065 | 212.439.4500
flatiron | 18 West 21st Street, NY, NY 10010 | 212.300.1850
tribeca | 124 Hudson Street, NY, NY 10013 | 212.380.2400
Warburg Realty Partnership LTD, as the Exclusive Agent, represents the seller of this property. All information in this document is from sources deemed reliable but is subject to errors, omissions, or changes without prior notice. No representation is made as to the accuracy of
! "
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M2B | Friday, December 8, 2017
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M3
MANSION
HOUSE CALL | DANIEL BOULUD
From Farmhouse
To Food Empire
FROM TOP: MATT FURMAN FOR THE WALL STREET JOURNAL; DANIEL BOULUD (HISTORICAL)
The chef started at his family’s cafe on
their farm in France; today, a home above
his flagship New York restaurant
The first amazing thing I ever tasted was a
slice of ham. On my family farm in France, my
father cured hams through salting and smoking. When I was 3, he took a knife and cut me
a piece. The meat was sweet and lightly
smoky outside and had a strong rustic flavor
inside. I’ve not tasted ham like that since.
FRENCH HOST Daniel Boulud, above, working with chanterelles in the test kitchen of his New York flagship restaurant,
Daniel. Below, with his father, Julien, far left, and two unidentified men, at a fair in Beaucroissant, France, in 1965.
ers of Jimi Hendrix, Bob Dylan and
French rocker Johnny Hallyday.
A lot of my friends in the village
became so experienced in the
kitchen that they left
home to cook professionally in their midteens. At 14, I did the
same. Fortunately, I
had help. For years, I
brought milk, eggs
and chickens to a
wealthy countess who
lived nearby. She
liked me and my family very much. When
my parents told her I
wanted to become a
cook, she called Nandron, a twostar restaurant in Lyon, and asked
the chef to hire me. He did.
By 1980, there was already a
legacy of great French chefs in
American kitchens—Jean-Louis
Palladin in Washington and André
Soltner and Jean-Jacques Rachou
in New York. Stories of their success made their way back to the
kitchens of France. I dreamed of
following in their footsteps.
In 1980, when I was 25, I moved
to the U.S., to work as a private
chef in Washington, D.C. Two
years later, I moved to New York
to work at the Polo Lounge and
then Le Régence before becoming
executive chef at Le Cirque from
1986 to 1992.
Today, I live above my flagship
restaurant, Daniel, on New York’s
East Side. I moved into the 2,500square-foot space 20 years ago. It
has a garden and a terrace.
My wife, Katherine, and I renovated six years ago, expanding the
kitchen to 185 square feet.
When I finish work around 11
p.m. and arrive home upstairs, I
love to eat half an avocado with
either dry sausage or anchovy.
The dining space in our kitchen
is my favorite space in the apartment. I also love my cookbook den
and home office. I shut the door
and relax in my red Auckland chair
and footstool from Cassina.
Four times a year, I return to
France to visit my family. Next
year, my parents will celebrate 68
years of marriage and their respective 90th birthdays. I’m planning a huge party in Lyon.
My father still cures his own
ham and bakes his own bread.
When I’m there and we put those
two together, it’s like prayer. I feel
nothing has changed and life is
beautiful.
—As told to Marc Myers
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mother. Outside, it was my father.
My grandmother did the cooking for the cafe attached to our
house—Café Boulud. This was
fairly common. Every 3 or 4 miles,
farms had a social place to gather
and talk, make calls on the pay
phone or just have lunch.
My father, Julien, was hard
working and had a good sense of
humor. He also was handy. He
made all kinds of tools and machines. He was an inventor and engineer
without a diploma.
I began helping my
father when I turned
8. But to be honest, I
didn’t like going into
the field. So I became
useful in the kitchen
helping my grandmother. She taught
me how to cook.
What I remember
most were her soups.
They expressed the foods of the
seasons. She also made her own
bread.
My bedroom walls were covered
with posters of motorcycles. I was
crazy about them. By the late
1960s, my wall also included post-
co Fo
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Our family’s 60-acre farm is in
Saint-Pierre-de-Chandieu, about 45
minutes southeast of Lyon.
We raised animals, we had a big
garden for produce and a vineyard
for wine, and we made our own
cheese and ham.
I’m a middle child with two older
sisters and two younger brothers.
My grandmother lived with us,
while my uncles and cousins lived
nearby on their own farms. We all
helped each other during harvests.
Our farmhouse from the late
1800s was built of stone and earth
in the French adobe style. Brick
pillars supported the roof, and the
interior walls were quite thick. Everyone had their own bedroom except for my two sisters, who
roomed together in one. In the
back, large buildings sheltered the
cows, goats, pigs and chickens.
Every week there seemed to be
a big harvest. There were specific
times of the year to gather the
garlic, the greens, the hay, the walnuts, the chestnuts and so on. After the harvest, our food was sold
at the farmers market in Lyon.
My mother, Marie, raised us
and tended the animals. Inside our
house, the rule of law was my
Daniel Boulud, 62, is a French chef
and owner of 13 restaurants, five
in New York. He is the author of
eight books, including “Letters to a
Young Chef” (Basic).
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This material shall not constitute a valid offer in any state where prior registration is required. The facilities and amenities described and depicted are proposed, but not yet constructed. Photographs are for illustrative purposes only and are merely representative of current development plans.
Development plans, amenities, facilities, dimensions, specifications, prices and features depicted by artists’ renderings or otherwise described herein are approximate and subject to change without notice. © Minto Communities, LLC 2017. All rights reserved. Content may not be reproduced,
copied, altered, distributed, stored or transferred in any form or by any means without express written permission. One Particular Harbour and the One Particular Harbour logo are trademarks of Margaritaville Enterprises, LLC and are used under license. Minto and the Minto logo are trademarks
of Minto Communities, LLC and/or its affiliates. CGC 1519880. 12/2017.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
M4 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
MANSION
THE MARKET
Living Large in the Big Easy
A new crowd of developers and buyers are spicing up the New Orleans housing market
SARA ESSEX BRADLEY FOR THE WALL STREET JOURNAL (4)
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ACED IT The Ace Hotel, above, and luxury Standard condos, right, in rendering, in the emerging South Market District.
built 42 condos at 425 Notre Dame
Street, on land she inherited from
her mother.
“The bank asked me where my
marketing research [was], and I
said ‘Me, right here,’ ” Ms. Brennan
said. Units sold for $500 to $750 a
square foot, she said, and residents
moved in beginning October 2013.
By contrast, homes in the French
Quarter—the city’s most expensive
neighborhood—typically fetch
$400 a square foot, said Katie
Witry, of Gardner Realtors.
“That was the only new game in
town,” said Glennda Bach of Latter
& Blum Realtors, who is handling
the resale of a two-bedroom, onebathroom unit in the building
listed for $650,000.
Now, several projects are
planned downtown, including conversion of the long vacant World
Trade Center site into 100 highend condos and a Four Seasons hotel. Another incentive is a change
of rules allowing homeowners to
rent their units short-term—subject to certain limits.
Buyers at Eleven Hundred Annunciation, a 90-unit, 16-story
condo building due to be completed in 2019, can sign up for a
management company to handle
their short-term rentals, said sales
director Shaun Talbot of Talbot
Realty Group. Prices for the oneto four-bedroom units will range
from $425,000 to $2.45 million.
William B. Reily IV, the scion of
a family food business, is building
44 condos at 700 Magazine Street,
once a company garage. He is also
converting the company’s 1902
headquarters and former coffeeroasting plant into 33 rentals.
The Kalorama condos offer covered parking, 24-hour security, a fitness center and dog runs. They are
set to go on the market by year’s
end for $600 to $900 a square foot.
Mr. Talbot is handling sales.
“It was such an opportunity,”
Mr. Reily said, “because the neighborhood has become such a magnet in the city of New Orleans.”
n-
refurbishment of the MercedesBenz Superdome.
But the residential offerings
mostly had limited amenities: exercise rooms, street parking and runof-the-mill finishes. Those weren’t
enough to meet the demands of
the post-Katrina influx of newcomers to the city—lured, in part, by
the attention New Orleans was receiving and by the attractive business incentives being offered. They
wanted the same amenities found
in other urban new builds.
ESTUDIO/TRAPOLIN PEER ARCHITECTS (RENDERING)
POOL TO TABLE New restaurants, left, and galleries,
above, help lure buyers to high-end condos such as Eleven
Hundred Annunciation, below, in rendering.
“People were really looking for
that Class A, very high-end condo
product,” Mr. Schwartz said.
New Orleans native Susan Brennan ran up against the gap between inventory and demand. She
was looking for a three-bedroom
condo with high-end appliances
and perks like a pool, dog-walk,
doorman and fitness center.
Nothing for sale fit the bill, so
she decided to build her home herself. She had already developed a
couple of small residential projects
and built a film-production facility,
Second Line Stages, that she
opened in 2009. With a bank
loan—and no other investors—she
no
JOHN AND KIM ANDREWS of Laguna Hills, Calif., had all but given
up on finding a pied-à-terre in New
Orleans—where they had enjoyed
jazz and football for more than a
decade. After years of touring
apartments, most in former industrial buildings, “we didn’t see anything that really knocked us out,”
said Mr. Andrews, a 62-year-old
audio-video executive.
Then the couple walked by the
sales office of the Standard, still
under construction. The building,
designed by Morris Adjmi, offers
89 luxury condos, an outdoor pool,
outdoor kitchens, a concierge and
covered parking—features that reminded Mr. Andrews of properties
in New York or Los Angeles. They
signed a contract for a 1,407square-foot two-bedroom with two
baths for just over $1.1 million.
For the first time, New Orleans
has a critical mass of luxury condos set to enter the market, with
deluxe finishes and opulent amenities—and prices to match. Developers—some local business people
relatively new to real estate—are
betting they can lure a more discerning, affluent buyer: empty
nesters shedding suburban houses
for the city’s walkable downtown,
and newcomers ready to buy into
the Big Easy’s eclectic lifestyle.
Some 1,933 condos were listed
in 2017 as of late October, 51.7%
more than in all of 2016, according
to listings website Trulia. The median list price was $244,060, up
from $240,000 in 2016 and
$169,250 in 2015.
The Standard is the third of four
residential buildings planned for
the South Market District, a fiveblock development that will have
more than 1,000 luxury apartments, mostly rentals. About 40%
of the for-sale units have sold,
with asking prices ranging from
$575,000 to $3.475 million, said
Matt Schwartz, principal of the
Domain Companies, the developer.
Domain began assembling land
for the project in 2009, Mr.
Schwartz said. New Orleans was
experiencing a wave of post-Hurricane Katrina development while
the rest of the country was reeling
from a housing crisis.
Developers were using state and
federal tax credits to convert historic buildings, said Parke McEnery of the McEnery Company, a
real-estate services firm, typically
turning former warehouses into
rental apartments.
New restaurants, galleries, food
stores, hotels and museums drew
residents to the Warehouse and
Central Business districts, as did a
ARC MEDIA (RENDERING)
BY LEIGH KAMPING-CARDER
SHORT HILLS, NJ Gorgeous 7,000 sq ft
new construction designed by architect
Tom Baio AIA & built by highly respected builder, Cliff
Geissler, with the ideal open floor plan on magnificent
260’ deep level lot on .58 acres. $2,999,000
Arlene Gonnella – 201-306-1357 (cell)
Short Hills Office – 973-376-4545 ext. 7576
SUMMIT, NJ A stunning new construction
Colonial on a cul-de-sac built by Millennium
Custom Homes. Located on a.43-acre lot, with an open
floor plan; gourmet EIK opens to FR; 6BRs, 6.1BAs,
every amenity. $2,269,000
Arlene Gonnella – 201-306-1357 (cell)
Short Hills Office – 973-376-4545 ext. 7576
MANHATTAN, NY Inwood Manhattan,
4,500 square-foot investment property.
A three-story, English-Style, three-family residential
building. Live rent free or buy as investment. Visit soon
to lay claim to this rare find! $2,250,000
Pixie Yates – 917-319-2840 (cell)
Weichert Properties® Soho Office - 212-334-3011
HO-HO-KUS, NJ Big price improvement
on this young mini-estate Colonial manor,
featuring 5 bedrooms, 5 full- and 3 half- baths, great
room with FP, living room with FP, plus a master
bedroom suite, $2,950,000
Katia Atalla – 201-321-4222 (cell)
Ridgewood Office – 201-445-9500
JERSEY CITY, NJ The Liberty; New
Condo Development accessible via
PATH (5 blocks) and NY Waterway Ferry. 22 Units, 2
Bedrooms plus. Priced from the low $800,000s
JERSEY CITY, NJ Port Liberte on the water.
NYC Ferry commute. Condo townhome,
approx. 2,700 sq. ft., 3 BRs, 3.5 BAs. Virtual tour at
https://tour.davis-photography.net/915853. $899,999
WAYNE, NJ This Packanack Lake home
combines elegance with comfort. Offers
an open flr plan, cathedral ceilings, master en suite, 3
levels of living and an in-ground pool & spa. $985,000
WEST ORANGE, NJ A 4 BR, 4
full- & 2-half BA w/ renvtd kit.
(2016), FR w/ W/B FP, master suite, all BRs have BA,
back yard w/ patio $999,000
Desreane ‘Desi’ Daniels – 201-286-5742 (cell)
Jersey City Downtown Office – 201-333-4443
Pura V. Rios – 908-377-2122 (cell)
Fort Lee Office – 201-592-1400
Richard ‘Rick’ Moberg – 973-722-4892 (cell)
Mt. Lakes/Parsippany Office – 973-334-9400
Donna Walling – 908-246-1284 (cell) &
Denise Gueterman – 908-303-2472 (cell)
Chester/Long Valley Office –908-879-7010
R E A L T O R S
®
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M5
Special Advertising Feature
m
ART
T WEEK
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Pluto and Proserpina by Jeff Koons graces the outdoor breezeway that connects the Atlantic Ocean with vibrant Collins Avenue at Oceana Bal Harbour. Courtesy of Oceana Bal Harbour
steli fa
r gud
M
n-
iami holds its own among global art capitals, but for one week in December, it
alone rules the world. High-net-worth collectors and the merely curious descend
in droves to take a deep dive into the giddy, glitzy and altogether frenzied world
that is Miami Art Week.
The city’s busiest week for 20th- and 21st-century art is a chance to show off its status as a
flashpoint of imagination. Pop-up shows with eye-popping exhibits take over the land and the
sand. Deals are made. Careers are made.There’s always something new and cool.
Map your route with this rundown of the highlights of Miami Art Week’s satellite fairs. Then
hitch a ride on one of the free trolleys or shuttle buses to experience Greater Miami at its fairhopping best.
no
The Wall Street Journal news organization was not involved in the creation of this content.
Located in the elite enclave of Bal
Harbour, Oceana Bal Harbour is the
artful 240-unit luxury residence
that houses a residents-only poolside restaurant — Ballerina — which
recently opened its doors as an extension of the residents’ kitchens.
The Piero Lissoni-designed indooroutdoor eclectic dining experience,
with views of the graceful Jeff
Koons sculpture Seated Ballerina,
is run by the revered Starr Catering
Group’s culinary chef Mark Tropea
and offers a selection of seasonally
inspired contemporary cuisine
infused with Mediterranean influences. Residents and their guests
can indulge in breakfast, lunch
and dinner seven days a week
with pool-deck gourmet bites and
cocktails, in-condo room service
and dinner-party catering services
with on-site chefs and wait staff —
all with a touch of a button on the
Oceana Bal Harbour mobile app.
www.oceanabalharbour.com
(786) 414-2929
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
M6 | Friday, December 8, 2017
Special Advertising Feature
1530 COLLINS AVENUE • THROUGH DECEMBER 10
AQUAARTMIAMI.COM
Fifty-two international exhibitors take over the Aqua
Hotel in South Beach for this showcase of young, emerging and mid-career artists. Check out “Which Comes
First, the Art or the Fashion?” from Morphew, the lux
vintage clothing studio. Part art gallery, part shop, the
exhibition explores the ways the art and fashion worlds
converge. The space also features an installation dedicated to Keith Haring and his Pop Shop boutique, as
well as a collaboration between Kara Ross and her nonprofit Unleashed, which shines a light on a women’s
collective of hand-beading artisans from Bareilly, India.
a be im
5925 NE 2nd AVENUE • THROUGH DECEMBER 10
ARTBEATMIAMI.COM
Experience the pulse and flavor of Little Haiti at the
Little Haiti Cultural Complex, which transforms into
a pop-up gallery presenting multidisciplinary works
by more than 30 artists from Haiti and the Caribbean
Diaspora. Pulitzer Prize-winning photojournalist Carl
Juste curates the show here in yet another one of the
city’s emerging arts enclaves. Collectors venturing off
the beaten path will be rewarded with food, art and culture while gaining exposure to up-and-coming artists.
The works of Port-au-Prince-born painter/musician
Jude “Papaloko” Thegenus are among the highlights.
Celebrities will also be creating artwork, which will be
auctioned off to benefit hurricane relief efforts. Chef
José Andrés will be honored during the Chefs of the
Caribbean Celebrity Brunch for his humanitarian efforts.
a i
m
ik m ar a
Art Miami, the long-running, heavy hitter of art fairs,
is back for its 28th year at a new location. This destination for blue-chip collectors pulled up stakes from the
Wynwood Arts District and moved to a new location
on the former site of the Miami Herald on Biscayne
Bay. More than 85,000 visitors are expected to explore
works offered by more than 140 international galleries
from over 22 countries. It’s art on steroids, with names
like David Hockney, Joseph Alberts, Alexander Calder,
Roy Lichtenstein, Cy Twombly, Jean-Michel Basquiat
and Damien Hirst — nearly one thousand artists in all.
A benefit exhibition entitled RAWK features the multilayered paintings of Rock & Roll Hall of Fame inductee
and former Metallica bassist Jason Newsted.
This is the place to take in a diverse array of modern
and contemporary masterworks on paper, sponsored
by the International Fine Print Dealers Association, the
nonprofit organization of art dealers, galleries and publishers. Fifteen exhibition galleries will feature new and
noteworthy works on paper from the U.S. and abroad.
Tranquility isn’t easy to find during Miami Art Week,
but the site’s open-air courtyard offers visitors a quiet
place to relax, chat with collectors and meet with gallerists. Pennsylvania’s Durham Press debuts a series of new
prints by widely exhibited artist Polly Apfelbaum. This
series will be available on a donate-what-you-can basis
to benefit a grassroots organization for women.
ONE HERALD PLAZA • THROUGH DECEMBER 10
ARTMIAMI.COM
dsg i
m/
MERIDIAN AVENUE AND 19th STREET • THROUGH DECEMBER 10
MIAMI2017.DESIGNMIAMI.COM
Design Miami/ is where influential collectors, gallerists and designers come to exhibit, lecture and talk shop.
Situated in a tent adjacent to the Miami Beach Convention Center, this marketplace for exceptional 20th- and
21st-century furniture and objets d’art includes installations designed to celebrate culture and commerce. The
show is intimate with fewer than 50 exhibitors, including 11 Design Curios. These assemblages of objects are
otherwise known as “cabinets of curiosity.” Follow the
crowds to see furniture by Pierre Chap, a master wood
designer from France, and George Nakashima, considered a leader of the American studio craft movement, plus stunning interpretations of modernism from
Brazilian to desert.
for mi
m
A Proud Presenting Sponsor of
FRANK STELLA:
EXPERIMENT AND CHANGE
Frank Stella, Lettre sur les sourds et muets II, 1974 Synthetic polymer paint on canvas, 141 x 141 x 4 inches.
Private Collection, NY © 2017 Frank Stella/Artists Rights Society (ARS), New York, Photo Credit: Christopher Burke
NOVEMBER 12, 2017 - JULY 8, 2018
at NSU Art Museum Fort Lauderdale
nd im
1400 NORTH MIAMI AVENUE • THROUGH DECEMBER 10
NEWARTDEALERS.ORG
New Art Dealers Alliance (NADA) delivers a platform for new voices and new visions in contemporary
art. This long-running fair gives young, under-the-radar
artists big-time exposure. More than 100 galleries —
nearly a quarter new to the fair this year — will be parading the works of artists from 16 countries at Ice Palace
Studios in Downtown Miami. The Warsaw-based Dawid
Radziszewski Gallery is a recipient of the 2017 NADA
Miami Gallery Prize. The gallery will make its debut at
the show with an exhibit that juxtaposes the works of
two Polish artists from different generations — Adam
Rzepecki and Tomasz Kowalski.
pt i
m
2217 NW 5th AVENUE • THROUGH DECEMBER 10
PINTAMIAMI.COM
“Crossing Cultures” is the theme of this fair, which
throws a spotlight on art from Latin America and the
Iberian Peninsula and encourages dialogue across borders, cultures and genres. “Errant Geographies,” from
curators Dan Cameron and Jesus Fuenmayor, is a kind
of exchange between Latino and Latin American artists that seeks to confront truths and fictions that exist
in geopolitics. Buoyed by last year’s record-breaking attendance, the 2017 edition launches “Pinta Platforms,”
curated by Roc Laseca, which gives galleries a chance to
showcase their artists in innovative ways. Also new this
year is “Pinta Countries Sections,” offering a stage for the
works of artists from Peru and Argentina.
co Fo
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WASHINGTON AVENUE AND 17th STREET • THROUGH DECEMBER 10
FORMMIAMI.COM
1850 COLLINS AVENUE • THROUGH DECEMBER 10
INKARTFAIR.COM
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Introducing Four Seasons Private Residences Fort Lauderdale, a new oceanfront
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944 COLLINS AVENUE • THROUGH DECEMBER 10
FRIDGEARTFAIR.COM
Artist Eric Ginsburg, known for his painterly pooch
portraits, brings his show back for a fifth year with The
Art Bagel Edition — not to be confused with Art Basel,
of course. Ginsburg likes his art with a side of humor.
Fridge, a play on the Frieze Art Fair, originated on New
York’s Lower East Side. For this, the Miami husbandand-wife artist team of Ignacio and Jean Blackwell Font
has been called upon to curate the show at the art deco
Blue Moon Hotel in South Beach. New for 2017 is a craft
bazaar and video lounge. Look for a Doggy Wall of Fame,
honoring celebrity hounds, including Pluto, Lassie, Bingo, Benji and Snoopy. Portions of the show will benefit a
local no-kill pet rescue organization.
no
n-
BROKER PARTICIPATION WELCOME.
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER.
FOR CORRECT REPRESENTATIONS, REFERENCE SHOULD BE MADE TO THE DOCUMENTS REQUIRED BY SECTION 718.503 FLORIDA
STATUTES, TO BE FURNISHED BY THE DEVELOPER TO BUYER OR LESSEE.
PLANS, FEATURES AND AMENITIES SUBJECT TO CHANGE WITHOUT NOTICE. ALL ILLUSTRATIONS AND PLANS ARE ARTIST
CONCEPTUAL RENDERINGS AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. THESE MATERIALS ARE NOT INTENDED TO BE AN
OFFER TO SELL, OR SOLICITATION TO BUY A UNIT IN THE CONDOMINIUM. SUCH AN OFFERING SHALL ONLY BE MADE PURSUANT
TO THE PROSPECTUS (OFFERING CIRCULAR) FOR THE CONDOMINIUM AND NO STATEMENTS SHOULD BE RELIED UPON UNLESS
MADEIN THEPROSPECTUSORIN THEAPPLICABLEPURCHASEAGREEMENT.INNOEVENTSHALLANYSOLICITATION, OFFERORSALE
OF A UNIT IN THE CONDOMINIUM BE MADE IN, OR TO RESIDENTS OF, ANY STATE OR COUNTRY IN WHICH SUCH ACTIVITY WOULD
BE UNLAWFUL. FOR NEW YORK PURCHASERS ONLY, THE COMPLETE OFFERING TERMS ARE IN A CPS-12 APPLICATION AVAILABLE
FROM THE OFFEROR. FILE NO. CP17-0076. FORT PARTNERS IS NOT THE PROJECT DEVELOPER. THE PROJECT IS BEING DEVELOPED BY
MW LAUDERDALE, LP, A DELAWARE LIMITED PARTNERSHIP, WHICH HAS A LIMITED RIGHT TO USE THE TRADEMARKED NAMES AND
LOGOS OF FORT PARTNERS PURSUANT TO A LICENSING AND MARKETING AGREEMENT WITH FORT PARTNERS. FOUR SEASONS
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AFFILIATES (FOUR SEASONS). THE DEVELOPER, MW LAUDERDALE, LP, A DELAWARE LIMITED PARTNERSHIP, USES THE FOUR
SEASONS TRADEMARKS AND TRADE NAMES UNDER A LICENSE FROM FOUR SEASONS HOTELS LIMITED. THE MARKS “FOUR
SEASONS”, “FOUR SEASONS HOTELS AND RESORTS” ANY COMBINATION THEREOF AND THE TREE DESIGN ARE REGISTERED
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ELSEWHERE. EXCLUSIVE MARKETING & SALES DOUGLAS ELLIMAN DEVELOPMENT MARKETING. EQUAL HOUSING OPPORTUNITY.
The boutique fair that demonstrates innovation in
contemporary applied arts and design makes its inaugural appearance at Miami Art Week. FORM Miami — a
spin-off of its sister fair, SOFA Chicago — features a roster of 25 international galleries that will be presenting
statement-making works in ceramics, fiber, glass, metal,
studio jewelry, wearable art and wood. Keep an eye out
for the sculptures of Sweden’s most celebrated glass artist, Bertil Vallien, who is known for his innovative sandcasting glass technique. Vallien’s creations are in the
collections of museums worldwide. New York-based
jewelry specialist Charon Kransen Arts will also be on
hand with its collection of contemporary wearable art
jewelry from both known and soon-to-be-known artists.
Luxury Reimagined
on The Private Side of Miami Beach
By Master Architect Piero Lissoni | Starting at $2 Million
MOV E I N T HIS W I N TER
On-Site Sales Gallery Open Daily
4701 Meridian Avenue, Miami Beach | TheResidencesMiamiBeach.com | 305.783.2518
Douglas Elliman Real Estate, a Licensed Real Estate Broker, is the Exclusive Sales and Marketing Team. The Ritz-Carlton Residences, Miami Beach are not owned, developed or sold by The Ritz-Carlton Hotel Company, L.L.C.
or its affiliates (“Ritz-Carlton”). 4701 Meridian, L.L.C. uses The Ritz-Carlton marks under a license from Ritz-Carlton, which has not confirmed the accuracy of any of the statements or representations made herein.This graphic is an
“artist’s rendering” and is for conceptual purposes only for The Ritz-Carlton Residences, Miami Beach.
THIS IS NOT AN OFFER TO SELL, OR SOLICITATION OF OFFERS TO BUY, THE CONDOMINIUM UNITS IN JURISDICTIONS WHERE SUCH OFFER OR SOLICITATION CANNOT BE MADE OR ARE OTHERWISE
PROHIBITED BY LAW, AND YOUR ELIGIBILITY FOR PURCHASE WILL DEPEND UPON YOUR STATE OF RESIDENCY. THIS OFFERING IS MADE ONLY BY THE OFFERING DOCUMENTS FOR THE CONDOMINIUM AND
NO STATEMENT SHOULD BE RELIED UPON IF NOT MADE IN THE OFFERING DOCUMENTS.THE INFORMATION PROVIDED, INCLUDING PRICING, IS SOLELY FOR INFORMATIONAL PURPOSES, AND IS SUBJECT TO
CHANGE WITHOUT NOTICE.
ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND
TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. Additionally, for New York offerees, the complete offering terms are available
in an offering plan available from Sponsor. CD16-0120.=
pz
145 EAST FLAGLER STREET • THROUGH DECEMBER 17
PRIZMARTFAIR.COM
Artists from Africa and the African Diaspora shine
brightly at Prizm, the brainchild of Miami-born founder
Mikhaile Solomon. Artist talks, panels, films and performance pieces are part of the extended run of Prizm.
When other fairs close up shop, Prizm stays around another week for those who can’t get enough — and business is good. Prizm outgrew its old home and relocated
this year to a new event space in Downtown Miami.
Carve out time for “Universal Belonging,” an exhibit that
tackles the complexities of cross-cultural dialogue by
sharing stories of artists of color from places like Iran,
Egypt, Nigeria, South Africa and the Caribbean as well
as the challenges they face sustaining their identity in
a globalized world. Among the global exhibitors will be
six contemporary artists from Barbados: Akilah Watts,
Adrian Richards, Sheena Rose, Llanor Alleyne, Versia
Harris and Simone Asia.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M7
Special Advertising Feature
TM
Conceived as “The World’s Finest Residences at the World’s Finest Resort,” The Estates at
Acqualina is creating Miami’s most luxurious and amenitized oceanfront lifestyle. From unrivalled
outdoor and indoor activities and furniture-ready estate-size residences with the finest finishes and
appliances, to five-star hotel-style services and sweeping views of the Atlantic Ocean, The Estates
provides the perfect backdrop to an incomparable way of life. Set along over five acres of pristine
Florida beach, its central location places residents midway between Miami and Ft. Lauderdale international airports and just minutes from the famed Bal Harbour Shops, Miami Design District and
South Beach. And the lobbies have been designed by none other than Karl Lagerfeld.
www.estatesatacqualina.com
(786) 838-4294
Spotlight and Art Talks. Showgoers get a chance to interact with artists and, if history is any indicator, a showing at Spectrum is likely to catapult rookies into the big
leagues. This year’s theme is [FUSION], which represents a merging of mediums — video, acrylic and oil, for
instance — as well as a merging of exhibitors and collectors. Keep an eye out for the raw and spontaneous
portraits of pop culture icons, celebrities and athletes
from Oklahoma self-taught artist Robert Peterson. Photography enthusiasts can look forward to another compelling collection of works from abstract, contemporary
and realist photographers as part of Spectrum’s FOTO
SOLO exhibit. Returning is “ArtSpot Miami,” a show
within a show from art dealer and curator Aldo Castillo,
which puts a heavy emphasis on Latin American art.
p im beac
4601 COLLINS AVENUE • THROUGH DECEMBER 10
PULSEARTFAIR.COM
56 NE 29th STREET • THROUGH DECEMBER 10
SUPERFINE.WORLD
Pink Leopard
by Sabrina Rupprecht at Red Dot Miami.
“Art for all” is the buzz phrase for this easy-on-thewallet fair in which individual works are capped at
$10,000 and about 70 percent are priced under $5,000.
The lineup includes a Young Collectors’ Ice Cream
Social and a queer art film series in collaboration with
Miami’s OUTshine Film Festival. Expect to see the
works of more than 150 solo artists. The lineup includes
a collaboration between New York photographers Julia
Comita and TwistedLamb of surreal occult imagery as
well as a survey of South Florida artists, including street
artist CHNK. But not all artists are in it for the glory.
Abstract paintings created by dolphins from Dolphins
Plus, a marine mammal rescue facility in Key Largo,
will also have their works on display. Proceeds benefit
the nonprofit organization that rescues stranded dolphins, whales and other marine mammals.
Courtesy of Arte Collective.
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.
Tented headquarters for PULSE, a veteran of the
Miami Art Week scene, is oceanfront Indian Beach
Park. Collectors and enthusiasts come to discover the
next crop of emerging artists, hear from industry insiders and experience multimedia installations. This year’s
fair includes over 70 exhibitors from five continents and
features artist group shows, solo artist presentations and
dual-artist “conversation” booths, which highlight a visual and conceptual dialogue between two artists. Don’t
miss Ode to Paradise (Dancers) by Hector Arce-Espasas,
which uses palm trees, fruit and a sculptural focus on
the derrière to challenge the notion of tropical paradise. In the fair’s video showcase, nine works centered
on the theme of “Power” invite visitors to explore ways
in which artists use new media. Want a glimpse of the
future? Helen Toomer, former PULSE director, curates
“Searching,” which showcases the works of 15 alumni
of the National YoungArts Foundation.
1700 NE 2nd AVENUE • THROUGH DECEMBER 10
REDDOTMIAMI.COM
The curatorial theme for 2017 is [IMPACT], a concept
interpreted through individual expression and largescale exhibitions about how art reflects and influences
society. Red Dot is where serious collectors connect
with established artists. This juried show draws participants in the hundreds and attendees in the tens of thousands to Miami’s Arts & Entertainment District, with
gallery talks, workshops, panel discussions, site-specific
projects and dynamic portfolios. Highlights include the
work of Mexican artist Ricardo Cárdenas, who salvaged
concrete and steel from the September earthquake and
turned it into abstract art pieces. There are also dreamy
tapestries from French-Caribbean multimedia artist
Marielle Plaisir as well as signature works by award-winning artist Sergio “Valenz” Valenzuela from Guatemala,
known for his abstract pieces of acrylic on canvas that
portray chairs, ladders and beds.
stli r hw
7410 OCEAN TERRACE • THROUGH DECEMBER 10
SATELLITE-SHOW.COM
s im beac
801 OCEAN DRIVE • THROUGH DECEMBER 10
SCOPE-ART.COM
The beach beckons once again for SCOPE Miami
Beach, an Art Week institution. The 17th edition of this
high-energy fair (with killer ocean views) features 140
international exhibitors from 28 countries, who will be
providing a dynamic showcase of the contemporary art
market within SCOPE’s 135 galleries. Former New York
Knick-turned-art collector Amar’e Stoudemire will curate an installation and moderate a panel discussion.
His Melech Collection is a platform for educating and
promoting burgeoning artists. Then there are the hardto-miss new works by renegade artist WhIsBe, known
for his Vandal Gummy bear sculptures, that are in public venues around the world.
uned, r
OCEAN DRIVE AND 12th STREET • THROUGH DECEMBER 10
UNTITLEDARTFAIRS.COM
This year’s show is the largest in Untitled’s history,
featuring 137 exhibitors from 26 countries and a selection of performances, special projects and talks broadcast on Untitled, Radio. This year’s special projects and
programming explore the notions of structure, shelter
and national identity. Make tracks for Thiago Martins
de Melo’s “Deus Cortado,” a site-specific installation
consisting of paintings, sculpture and stop-motion animation; the works of French-Venezuelan artist Carlos
Cruz-Diez, which take the form of a mobile museum
with immersive installations outside the fair’s pavilion; and a new interpretation of Matta-Clark’s Garbage
Wall, originally created in 1970 for the first Earth Day.
Matta-Clark’s estate invited students from Florida
International University to reimagine the iconic work
with locally collected debris.
setu mim
1700 NE 2nd AVENUE • THROUGH DECEMBER 10
SPECTRUM-MIAMI.COM
Spectrum, sister fair to Red Dot, offers visitors an immersive experience in the form of live performances,
seminars and programs, such as Art Labs, LaunchPad,
no
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This raw, edgy alternative art fair is in a new home
for year three, taking over the abandoned Ocean
Terrace Hotel in North Beach. The artist-run collective is presenting a cross section of progressive programs driven by activism, curiosity and creative expression. Expect fresh and quirky. Brooklyn artist
AnnaLiisa Benston teams up with Susie Magazine for a
feminist multisensory installation that includes wear-
able art objects and live tattooing. Also worth catching
is “Duet” in which two artists from two different cities — in this case, St. Louis painter Caitlin Aasen and
New Yorker Shawn Powell — are paired up to demonstrate how the cultural landscape influences their work.
TM
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ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO
A BUYER OR LESSEE. All artist’s or architectural renderings, sketches, graphic materials and photos depicted or otherwise described herein are proposed and conceptual only, and are based upon preliminary development plans, which are subject to change. This is not an offering in any state in which
registration is required but in which registration requirements have not yet been met. This advertisement is not an offering. It is a solicitation of interest in the advertised property.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
M8 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M9
MANSION
MANSION
A FANCIER FUTURE A rendering of EchelonSeaport, an upscale mixed-use development under construction in Boston’s Seaport neighborhood.
gritty and fantastic. We talk about
them being ‘grit-tastic’.”
Crime rates vary. In some locations, such as Hudson Yards in New
York and Seaport in Boston, reported crime is low relative to other
parts of the same cities, according
to data provided by real estate website Trulia. In more populated areas
such as mid-Market and South Park,
crime is high relative to many other
parts of San Francisco and Los Angeles, respectively, and very high
relative to expensive residential
neighborhoods in those cities.
Greenland USA, a subsidiary of
Chinese developer Greenland Holding Group, started construction in
2014 on Metropolis in Los Angeles’s South Park neighborhood.
The first of four towers, with 308
condos, is almost 80% sold for an
average of $1,100 a square foot,
according to Mike Leipart, managing partner at the Agency, the
real-estate brokerage handling
sales. When the project is completed in 2019, there will be over
1,500 condos, in addition to a hotel and retail. Another Chinese developer, Oceanwide Holdings, is in
construction on nearby Oceanwide
Plaza, an over $1 billion, threetower project that will have 504
condos by 2019. Prices haven't yet
been released.
Downtown developers will likely
attract young people and empty
nesters in addition to foreign buyers, Mr. Leipart said. Such buyers
are often less sensitive to issues
such as schools and playgrounds.
Developers aim for the top end
of the market because they have
to, said Mr. Habibi. “The promise
of growth in the future is already
priced in” to the cost of the land,
Mr. Habibi said. Once developers
have paid top dollar for a parking
lot or defunct warehouse, they often cannot build mid-market housing and still turn a profit.
The most dramatic example of
high-end development on the
wrong side of the tracks may be
Hudson Yards in New York City,
which is being constructed over a
functioning rail yard. The 28-acre
development, which spans from
10th to 12th Avenues and from
30th to 34th Streets, broke ground
in 2012 and should be completed
by the late 2020s. It will add 4,000
residential units, in addition to
millions of square feet of commercial and retail space and will cost
campus, where 800 employees will
work by 2021. Developer Alex
Shing, founder and chief executive
of Cottonwood Management, is so
excited about GE’s move that he
timed himself walking from the
new headquarters to the site of his
development, EchelonSeaport.
“It’s a 7-minute walk,” said Mr.
Shing, whose project broke ground
in June. By 2020, Echelon will offer 448 luxury condos, 285 rental
apartments and 125,000 square
feet of retail space, he said. He
doesn’t yet know prices.
Another condo building, Pier 4,
will have 106 condos when the
project is completed by early 2019.
Two bedrooms will cost “$2 million-plus,” said Jeff Wechsler, a
managing director of Tishman
Speyer in Boston. Ten penthouse
units will have private roof decks
spanning 800 to over 2,500 square
feet. Pier 4 will include a one-acre
park, retail and a farm-to-table
restaurant, Mr. Wechsler said
When Tanya Fruehe, a 30-yearold executive assistant, moved
with husband Zachary Wesley, a
32-year-old banker, from Orange
County to San Francisco, mid-Market was “frightening,” she said.
Five years later, the couple
rents a roughly $3,000-a-month
one bedroom in Trinity Place, a
rental development that will consist of 1,900 rental units when it is
completed in 2020, said Walter
Schmidt, executive managing director of developer Trinity Properties. Three rental buildings—a
fourth is under construction—surround a one-acre public plaza. Ms.
Fruehe said the plaza, plus 24hour security and more occupants
in the area, make her feel safe.
“I don’t think we’ll be leaving
anytime soon, especially because
of the growth,” said Ms. Fruehe.
“In a couple more years, it’s going
to be a great place to live.”
-c F
om or
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not to walk at night unaccompanied on certain streets, while Mr.
Alikin noted the boarded-up shops.
But a quick commute, tons of new
restaurants and the excitement of
being a pioneering investor make
it worthwhile, he said. “We have
just accepted that these are growing pains,” Mr. Alikin said.
Their building, Ten50, from San
Francisco-based developer Trumark
Urban, launched sales in 2016; condos have sold for between
$500,000 and over $4 million, said
managing director Arden Hearing.
“Values in Gen X and Y buyers are
different from previous generations. They have a higher tolerance
for crime and grit, so long as amenities, culture, services, transit and
jobs are proximate,” said Mr. Hearing. “We have projects that are
roughly $25 billion, said Jay Cross,
president of Related Hudson Yards.
The developer, Related Companies, listed the first penthouse at
Hudson Yards for $32 million in
September. At One Hudson Yards, a
rental building that began leasing
this summer, the cheapest apartment currently on the market is a
$4,750-a-month one bedroom. As
required by New York City, Hudson
Yards will build 460 low-income
units, distributed by city lottery.
For developers, one sign that an
area will be appealing to condo
buyers is when high-profile employers move in. For Mr. Sagan in
San Francisco, when Twitter,
Dolby and Uber set up offices in
mid-Market “those were indications” that the area was ripe for
condo development. In Hudson
Yards, financial companies KKR
and BlackRock, luxury brands
L’Oréal and Coach and media companies including Time Warner
have already signed commercial
leases, Mr. Cross said.
“Commercial tenants increasingly
have a millennial workforce and
they work flexible hours and want a
live-work-play environment,” Hudson Yards’ Mr. Cross said.
Boston’s Seaport neighborhood,
which until 2006 mostly consisted
of surface parking lots, will be the
new home of General Electric’s
ly
.
COTTONWOOD MANAGEMENT, LLC (RENDERING)
FROM PARKING LOTS TO PENTHOUSES A rendering of Pier 4, a condo building in Boston’s Seaport neighborhood,
which mostly consisted of parking lots. Ten penthouse units will have roof decks of 800 to more than 2,500 square feet.
no
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Continued from page M1
Mr. Sagan’s goal—to help turn
San Francisco’s mid-Market neighborhood, long characterized by a
large homeless population, public
drug consumption and dirty streets
into a destination for upscale
condo living—might seem quixotic.
But developers in competitive urban real-estate markets in Los Angeles, Boston and New York are doing the same, building in seedy
neighborhoods and industrial sites
and pitching their projects as the
next big thing in luxury living.
This is hardly the first time rundown urban neighborhoods have
been transformed into luxury destinations. Such transformations,
however, usually happen gradually,
sparked by zoning changes that allow residential development and
infrastructure improvements. New
York’s Soho is a classic example:
Its industrial buildings were first
colonized by artists in the 1960s.
Then the area benefited from rezoning rules in the 1980s that allowed developers to convert commercial buildings into homes, said
Aaron Shkuda, author of “The
Lofts of Soho.” Today, Soho is one
of New York’s priciest districts.
The difference in this cycle is
the organic first phase—the colonization by artists and other real estate pioneers—is either brief or
nonexistent. Instead, developers in
some areas are creating new “upand-coming” neighborhoods out of
whole cloth, taking advantage of
the fact that many of today’s highend buyers are less resistant to the
harsher realities of city living. “Developers are selling authenticity
and the urban experience, which is
more in favor than 15 years ago,
when suburbia was viewed as the
utopia,” said Paul Habibi, a lecturer
in development at UCLA’s Ziman
Center for Real Estate.
Albert and Jessica Alikin, 33and 29-year-old lawyers, respectively, moved into a $906,000,
two-bedroom condo in a new
building in a downtown Los Angeles neighborhood known as South
Park in February. Ms. Alikin carries pepper spray and is careful
CLOCKWISE FROM TOP LEFT: STEELBLUE (RENDERING); RELATED-OXFORD (RENDERINGS, 2); SNØHETTA/SCB ARCHITECTS (RENDERING)
LUXURY IN NO MAN’S LAND
LOOK UP A rendering of One Oak in
San Francisco.
121 Marina- Penthouse 9 • $9,400,900
5 Bedrooms, 5.5 Baths
Marina Views • 1133
53 Tarpon Lane • $8,200,000
6 Bedrooms, 7 Full & 3 Half Baths
Canal Frontage • 1407
ON THE TRACKS A rendering of Fifteen Hudson Yards in New York, above; a
rendering of a penthouse that is listed for $32 million, below.
14 Sunrise Cay Drive • $15,500,000
6 Bedrooms, 6.5 Baths
101’ Ocean Frontage • 1033
39 Cinnamon Bark Lane • $2,500,000
6 Bedrooms, 6.5 Baths
Golf Course Frontage • 1129
Marina Slip ES-17 • $1,600,000
T-Head Location
70’ Dockage • 608
many posibilitie
ONE CLUB
27 Dilly Tree Park • $2,975,000
4 Bedrooms, 4.5 Baths
Golf Course Frontage • 1386
N EW
NE
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HO ME S
•
VILLA S
VILLAS
•
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CO
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DO
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•
MAR
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•
VIL LA & HOME R EEN
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Interested in learning more about the simple pleasures of this unique club? There are only two ways to
experience Ocean Reef Club – as a guest of a member or through the pages of Living magazine. Go to
OceanReefClubLiving.com or call 305.367.6600 to request your free copy and our Real Estate Guide.
William H. Dickinson, Managing Broker Lic. Real Estate Broker, Ocean Reef Club Real Estate Company® is An Equal Opportunity Company, Equal Housing
Opportunity. This material is based upon information that we consider reliable, but because it has been supplied by third parties, we cannot represent
that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions, changes, including price, or
withdrawal without notice. Offer not valid in some states.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
M10 | Friday, December 8, 2017
MANSION
BALANCE SHEET
Outside: Classic.
Inside? Dated.
FIXER-UPPER Gregor and Liz Watson, with their dogs, Grizzly and B.B., on the back terrace of their 1913 stucco mansion. They embarked on a $2 million renovation that increased the square footage and added two full bathrooms.
MAJOR
COSTS
Foundation
$350,000
Electrical and
plumbing
ly
.
$275,000
Backyard
$400,000
After opening several restaurants in northern California, Mr.
Watson switched to real-estate investing in 2007, buying thousands
of lots, and then homes, across the
country. Two years ago he founded
Roofstock, an online company that
matches investors with rental
homes occupied by tenants, and
then the financing company
1Sharpe Capital.
The Watsons moved to a rental
house in Piedmont from Oakland
Hills in 2012 and then bought a
house in Piedmont in 2013; they
liked the small-town feel of the
neighborhood and its public parks.
Piedmont is a wealthy area in
the East Bay, about 4 miles from
downtown Oakland and 13 miles
from downtown San Francisco. The
median home price was $2.1 million last year, compared with $1.25
million in San Francisco, $1.125
million in Berkeley and $690,000
in Oakland. Piedmont is known for
having good schools, quiet streets
and few shops.
Soon after they bought their
house, on a flight to Seattle, Ms.
Kitchen
$350,000
Windows
$75,000
Watson had pulled out schematic
plans to study the lighting options
for her renovation, when the
woman next to her, with one child
asleep on her lap and the other absorbed in a movie, asked if she
could offer some advice. That
woman was interior designer Caitlin Jones Ghajar, who started
working with the Watsons as she
did a walk-through of the house.
“It was clear from the beginning
they were going to put in the
money and the effort to do it
right,” says Ms. Ghajar.
n-
IT LOOKED PERFECT from the
curb: an 8,900-square-foot, 1913
stucco mansion on a hill in Piedmont, Calif., fronted by redbrick
stairs, old-fashioned lanterns, segmented arched windows and a redtile roof.
Inside was a different story. The
seven-bedroom, six-bathroom
house hadn’t been updated since
the 1950s and the back was mostly
concrete and weeds. It sat on
the market for a year
priced at $4.65 million.
Gregor and Liz
Watson knew it
would take a lot of
money to fix the imperfections, but they
bought the house for
$4.2 million in 2015
anyway because the
floor plan was solid, the
ceilings were over 9 feet high,
it had views of the Golden Gate
Bridge, and there was a lot of
light, making it possible to modernize the house and still keep
what attracted them in the first
place.
“Some homes have a fatal flaw.
This one didn’t,” says Ms. Watson,
39, a stay-at-home mom. She and
Mr. Watson, 37, a real-estate investor and high-tech entrepreneur,
then spent the next year and a half
on a recently finished $2 million
renovation that increased the
square footage to 9,192 and added
two full bathrooms.
Starting with the basics, the
couple put in steel beams for seismic support, installed new electrical and plumbing, and replaced the
roof. Upstairs, they created a master suite from two smaller bedrooms and added a laundry room
and a coffee station.
In the kitchen, they added a 12-
foot island, marble counters, two
sinks and two dishwashers. They
created a sitting area next to a
fireplace and put in a banquette.
On the side that faces the yard
they took down a wall and replaced it with a NanaWall glass
wall that opens completely to the
patio outside.
The other four rooms on the
first floor, some divided by interior arched doorways, are more
formal: a dining room, living room,
sitting room and second sitting
room they call the “gallery,”
all with the original classical molding, sisal
rugs and a blue-andwhite color scheme.
What was a former
ballroom in the
basement, used for
everything from
grown-up parties to
high-school dances, is
now a rec area with a
pool table, table tennis and a
media room area.
What needed the most work
was the area out back, which they
describe as feeling like a prison
yard, with cinder-block walls and a
patio 3 feet lower than the house.
They brought in dirt to raise the
patio, planted a large garden and
redid the swimming pool, adding a
bathhouse. There is now an outdoor kitchen with a pizza oven at
one end.
The Watsons met in 2003 at the
pool of the Hard Rock Café in Las
Vegas. (“Our parents were skeptical,” says Mr. Watson). Ms. Watson, a Seattle native who graduated from UCLA in 1996, had
moved to San Francisco for a biotech job in 2000. Mr. Watson, who
grew up in Santa Cruz, Calif., had
played baseball at Regis University
in Denver, studying for his real-estate license on the bus to and
from games.
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BY NANCY KEATES
VIVIAN JOHNSON FOR THE WALL STREET JOURNAL (6)
The buyers of a Piedmont, Calif.,
mansion tackle a 1950s interior
and a backyard of concrete and weeds
no
UPGRADES The master bathroom has a steam shower and heated floors; the master bedroom has a contemporary aesthetic; in the basement, the Watsons created a rec room and children’s playroom.
11 of the World’s Finest Properties. Each Selling Without Reserve.
Featured: South Florida Oceanfront
Projected Opening Bid Range $10M-$20M. Selling to the Highest Bidder.
1940 South A1A | One of America’s greatest estates, this gated oasis is recently-completed with 310ft of private oceanfront.
" @ A 4 ( A ' 7 7 A ' B C3 9 D A ' ( A E + + A '< 4 A * @ A ( $ 7 A ? @ A , * REGISTER TO BID AT CONCIERGEAUCTIONS.COM | 212.202.2940
!" # $ % &'() *+ , *- .#))) / 01 23 4 005511116 % 72- (( +-% 3 3 2- $ , - .#))) 72- 2
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M11
EXTRAORDINARY ART.
EXCLUSIVE HOMES.
BRIELLE, NEW JERSEY
CHATHAM, MASSACHUSETTS
NORTH PALM BEACH, FLORIDA
NORTH PALM BEACH, FLORIDA
JACKSON, WYOMING
31,000 sq. ft. estate on 3 acres overlooking the Manasquan River. $12.85M. The
Brian Church Group. bcgsold@gmail.com.
Web ID: www.818linden.com
+1 732 449 0671
“The Beechwood.” Historic 10-bedroom,
in-town, water-view estate parcel $11.7M.
Lori Fanning Smith.
+1 508 945 1186
Newly priced. Best deepwater view. 2
docks. Located in a prestigious private golf
community. Beautiful family home or build
new. $11.4M. Peter Erdmann.
+1 561 329 2383
Newly priced. 1+/- acre lot in private community. 4 beds, 5-full baths, 3 1/2 baths.
Perfect for entertaining. Pool, dock, sunset
views. $9.975M. Denice Sexton.
Desirable estate in the heart of the Nat’l
Elk Refuge. Fully furnished 5-bedroom residence w/ amazing Teton views. $8.85M.
Carol Linton.
carollinton@jhrea.com
Gloria Nilson & Co. Real Estate
Pine Acres Realty
Lost Tree Realty, Inc.
Lost Tree Realty
Jackson Hole Real Estate Associates
NORTH PALM BEACH, FLORIDA
DENVER, NORTH CAROLINA
RIDGEFIELD, CONNECTICUT
BORDEAUX, FRANCE
Smart home. Built in 2016. Contemporary
family home. 5-bed, 5 1/2 bath, office,
1-acre lot w/ private beach access, and
much more. $4.299M. Peter Erdmann.
+1 561 329 2383
Elegant & comfortable private gated estate
home with over 800 ft of shoreline and unrivaled 300 degree views. Susan Dolan
+1 704 560 7201 $3.85M. Reed Jackson
+1 704 713 3623
Exceptional mansion built in 2008. Prestigious in-town location, superb detailing,
elevator, library, wine room, theater. 70
min. to NYC. $3.795M. Karla Murtaugh.
karla@karlamurtaugh.com
Elegant 19th-century Palladian château in
outstanding condition set in 4 ha. of parkland near city of Bordeaux €3.5M. Maxwell-Baynes. Web ID: 1592163
info@maxwellbaynes.com
Lila Delman Real Estate +1 401 423 3440
Lost Tree Realty
Ivester Jackson Distinctive Properties
Neumann Real Estate +1 203 856 5534
ly
.
JAMESTOWN, RHODE ISLAND
Folly House c.1886 classic period detailed
harborfront cottage with modern day
amenities overlooking Narragansett Bay.
$4.5M. Bob Bailey. Web ID: 1173362
bobbailey@liladelman.com
co Fo
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Maxwell-Baynes
SOUTH TIVERTON, RHODE ISLAND
WATCH HILL, RHODE ISLAND
RIDGEFIELD, CONNECTICUT
SPRING LAKE, NEW JERSEY
Pease Field Farm - Exquisite family compound sited on 4.7 acres to take full advantage of breathtaking ocean views.
$3.1M. Kristin Parella. Web ID: 1165264
kristin.parella@liladelman.com
Stunning architectural details abound in
this fabulous 1.7-acre estate in Watch Hill.
Walk to one of the finest beaches in RI.
$3M. Lori Joyal. Web ID: 1172547
lori.joyal@liladelman.com
Sophisticated & stylish 6-bed architectural
gem. Stunning 2+ acres w/perfect indoor/
outdoor entertaining spaces. Top location,
70 min. to NYC $2.95M. Karla Murtaugh.
karla@karlamurtaugh.com
The ultimate beach house with private garden, patio, and pool, just one block from
the ocean. $2.849M. Brian Church. Web
ID: www.16atlantic
Long & Foster Real Estate, Inc.
Lila Delman Real Estate +1 401 848 2101
Lila Delman Real Estate +1 401 348 1999
Neumann Real Estate +1 203 856 5534
Gloria Nilson & Co. Real Estate
RIDGEFIELD, CONNECTICUT
DENVER, NORTH CAROLINA
TORONTO, ONTARIO
ORLEANS, MASSACHUSETTS
PORTSMOUTH, RHODE ISLAND
One of the Village’s most admired properties. Top Main St. location, 6-bed, beautifully appointed, 1.13 acres w/ pool. Approx 1hr to NYC. $2.8M. Karla Murtaugh.
karla@karlamurtaugh.com
Located on a private gated island. Unparalleled panoramic main channel view. Laura Pegram +1 704 728 5122. $2.425M.
Lori Ivester Jackson. Web ID: 3240993
+1 704 996 5686
Powell & Bonnell perfection. Double unit.
Almost 3,500 sq. ft. Spectacular loft-like
space w/ gourmet kitchen, 2 beds. 2 terraces. 2 parking spaces. US$2,291,262.
Jimmy Molloy +1 416 925 9191
Waterfront home with spacious interior
and boathouse on Town Cove. $1.895M.
Chris Rhinesmith.
+1 508 945 1186
Mintwater Cottage c.1750 former blacksmith’s cottage for the Moses Taylor estate
at Glen Farm. Lovingly restored. $1.75M.
Kendra Toppa. Web ID: 1166277
kendra.toppa@liladelman.com
Ivester Jackson Distinctive Properties
Chestnut Park Real Estate Limited, Brokerage
Pine Acres Realty
Lila Delman Real Estate +1 401 848 2101
no
Neumann Real Estate +1 203 856 5534
n-
VIRGINIA BEACH, VIRGINIA
On private 6-acre island. Water views from
each room. Smart-house technology, spalike master suite, pool, cabana, dock, boat
house, lift. $3.495M. Katie Zarpas.
+1 757 685 4400
RIDGEFIELD, CONNECTICUT
RIDGEFIELD, CONNECTICUT
ST. PETERSBURG, FLORIDA
JACKSON HOLE, WYOMING
RIDGEFIELD, CONNECTICUT
Updated architectural masterpiece. Private setting close to town, indoor saltwater pool, high-end appointments. Approx.
1 hr to NYC. $1.695M. Karla Murtaugh.
karla@karlamurtuagh.com
Expanded & renovated open-plan, 4-bed
home in spectacular parklike setting. Main
floor MBRS, library, pool. Approx 1hr to
NYC. Turnkey. $1.695M. Karla Murtaugh.
karla@karlamurtaugh.com
Contemporary 3-bed, 3-bath condo located in downtown with controlled access
elevator, great room plan and direct water
views. $1.399M. Gina Przyborowski.
+1 727 278 5347
Ranch Estates at Snake River Sporting
Club. 7 to 35 acres. Access to Snake River and National Forest. +1 307 200 3114.
Starting: $1,495,000. Jeff Heilbrun.
jheilbrun@srsportingclub.com
Beautifully maintained, 5-bed vintage
home on 3+ beautiful, park-like acres
close to town. Guest house, pool, barn &
paddocks. $1.275M. Karla Murtaugh.
karla@karlamurtaugh.com
Neumann Real Estate +1 203 856 5534
Neumann Real Estate +1 203 856 5534
Coastal Properties Group
Jackson Hole Real Estate Associates
Neumann Real Estate +1 203 856 5534
ST. PETE BEACH, FLORIDA
NORTH PALM BEACH, FLORIDA
COLTS NECK, NEW JERSEY
GREAT BARRINGTON, MASSACHUSETTS
CHATHAM, MASSACHUSETTS
Fall in love with this direct Gulf-front home
that offers a 2-car garage & separate guest
suite with private entrance.
historicpassagrille.com. Denise Reilly.
+1 727 458 6161
4-bed, 4-bath light filled garden home.
Large pool. Close to amenities in prestigious private community. Golf, tennis, fitness, beach. $2.495M. Peter Erdmann.
+1 561 329 2383
Private 6.52-acre estate on the Swimming
River. 7,000-square-foot masterpiece.
$2.349M. Web ID: www.10bowie.com.
Brian Church.
Modern Arts & Crafts masterpiece by
Kenneth Nadler. Set on 10 very private
acres with 5,500 sq. ft. $3.6M.
Maureen White.
Estate on Pleasant Bay on 1.18 acres
with private association Beach. $3.95M
Chris Rhinesmith.
+1 508 945 1186
Coastal Properties Group
Lost Tree Realty
Gloria Nilson & Co. Real Estate
Barnbrook Realty +1 413 528 4423
Pine Acres Realty
London
+44 20 3826 8908
Hong Kong
+852 5808 5310
New York
+1 877 727 1810
Los Angeles
+1 877 726 4304
Palm Beach
+1 877 726 2380
Moscow
+7 495 937 6364
christiesrealestate.com
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
M12 | Friday, December 8, 2017
ADVERTISEMENT
KIAWAH ISLAND, SOUTH CAROLINA
DOWNTOWN ST. PETERSBURG FLORIDA
AUSTIN, TEXAS
With 5,331 square feet, 5 bedrooms, 5 baths and 2 half baths, the home
at 15 Ocean Course Drive enjoys ocean views and overlooks The Ocean
Course, site of the “War by the Shore” Ryder Cup and 2012 and 2021 PGA
Championships. Enjoy abundant outdoor living spaces including a grilling
station and pool, fine interior finishes, and elevator. A Kiawah Island Club
Membership is available.
Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3
blocks from the water, artfully designed townhomes now under construction
on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2
car garage, private elevator, and amazing rooftop terrace. Low HOA fees.
Walking distance to world-class restaurants, museums, shopping, parks,
marina, and Tampa Bay.
Your Lakeside Farmhouse Awaits. This spacious one-story is situated
on a 1+ acre lot in a private, gated community on the Lake Travis shoreline.
Boasting 3 bedrooms plus casita, 4.5 bathrooms, exquisite pool/spa, outdoor
kitchen & high-tech conveniences, this home blends the comfort of the Texas
Hill Country with the sophistication of a custom home.
$4,850,000
From the $800’s to $900’s
$1,690,000
kiawahisland.com/15-ocean
www.RegentLane.com
PeninsulaLakeTravis.com
Kiawah Island Real Estate
NJR Property Investments LLC
The Peninsula at Rough Hollow
Loren Dickey
phone: 866.312.1780
phone: 727.515.5556 email: natalie@njrdevelopment.com
phone: 512.456.3756 info@PeninsulaLakeTravis.com
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info@kiawahisland.com
JOHN’S ISLAND – VERO BEACH, FLORIDA
MCCALL, IDAHO
NAPLES, FLORIDA
This private, Atlantic coastal community offers an abundance of water
sports, 3 miles of pristine beach, 3 championship golf courses, 17 Har-tru
courts, pickleball, squash & Beach Club. Private airport & cultural amenities
are minutes away. This renovated 4BR/3.5BA, Lake Reams retreat enjoys
5,402± GSF, a gourmet kitchen, luxurious master bath, pool & new spa.
Build your dream home at Whitetail Club in McCall, Idaho. Live life on
top of the world with over 2 acres of incredible valley and lake views from
the crest of Whitetail Club. The lakefront clubhouse, single-track mountain
bike trail system, Nordic ski trails, indoor tennis & fitness center & the
championship golf course are all outside your doorstep.
Minto Single-Family Estate Homes located in an area famous for
extraordinary golf communities. TwinEagles boasts not just one championship
course awarded “Best New Private Course in America” by Golf Magazine, but
two 18-hole, tour-quality courses and a spectacular 47,000 sq. ft. country
club lavished with every imaginable amenity. Best of all, golf membership
initiation fee is included with every Minto new home purchase.
$2,750,000
$604,000
From the mid $500s to over $1 million
JohnsIslandRealEstate.com
WhitetailClub.com
MintoUSA.com
Whitetail Club Realty, LLC.
Joe Carter
Minto Communities
phone: 877.634.1725 email: jcarter@whitetailclub.com
phone: 888.379.9868
CHARLESTON, SOUTH CAROLINA
GREAT LIFESTYLE IN NAPLES, FLORIDA
Great southern lifestyle in small NC city. Gorgeous house/bed and
breakfast/event venue located in the city center on 13 acres. 8,000 sq ft of
living area. Well-established, busy B&B. The city (population 20K) has country
club golf, 50 miles from the ocean, a minor league baseball team, and many
other attractions. Owner financing is available.
Nestled along the banks of the Clark Sound, this stunning estate
featuring two lots epitomizes Lowcountry living. Outdoor entertaining areas
include two large screened porches, a rooftop terrace and a large deck with a
pool overlooking the marsh. Eat-in kitchen, sunrooms, two master suites and
guest house. Shared dock with access to Charleston Harbor.
Live the lifestyle of your dreams in Naples, Florida! Gorgeous singlefamily residences up to 4,879 a/c sq. ft. Amazing six-acre recreation area
with 13,000 sq. ft. clubhouse, resort pool, fitness, tennis, indoor sports
court and much more - all included in low HOA fees. This is an incredible
opportunity in a great Naples, Florida location – call today!
$1,595,000
$3,950,000
From the $400’s to the $700’s
John’s Island Real Estate Company
phone: 772.231.0900
wj@johnsislandrealestate.com
no
n-
KINSTON, NORTH CAROLINA
www.1105FortLamar.com
www.glhomes.com
McConnell Holdings, Inc.
The Cassina Group
Robertson Allen
phone: 252.523.5200 email: jwardmc@yahoo.com
phone: 843.442.6534
BOCA/DELRAY BEACH, FLORIDA
SPENCERTOWN, NEW YORK
PARK CITY/HEBER VALLEY, UTAH
Ultimate luxury at Seven Bridges – brand new estate homes in a
highly amenitized non-golf community in Boca Raton / Delray Beach area.
Generous features include impact glass, granite or quartz countertops,
gourmet kitchens and stunning 30,000 sq. ft. club. Low HOA fees, close to
world-class shopping, great schools. Experience Seven Bridges today!
Crow Hill Manor is a magnificent 42 acre estate in Spencertown NY.
Early stone main house with newer dramatic, clearstory great room.
Chefs kitchen, 1st flr ensuite Master. Olympic size pool, pavilion, brick
guest house, caretakers apt. Pond & pond house. Traversed by 3 streams,
waterfalls & lawns. Corporate retreat, family compound, the great escape.
Build your dream mountain home in the neighborhood at the current
high point in Red Ledges, Summit Loop, and wake to this commanding view
of Mt Timpanogos or Deer Valley. As the most successful private community
in the Park City area, Red Ledges offers world class mountain, valley, water
and trail activities, all just 45 minutes from a major hub airport.
From the $800’s - $2 million
glhomes.com/seven-bridges $2,900,000
GL HOMES
email: RAllen@TheCassinaGroup.com
www.countryliferealestate.com
phone: 800.281.9239
$515,000
GL Homes
Country Life Real Estate
Linnea VanTassel
Red Ledges Realty
Bill Houghton
phone: 800.875.2179
phone: 518.392.6600
phone: 877.733.5334
Linnea@countryliferealestate.com
To Advertise Call: 800-366-3975
www.RedLedges.com
info@RedLedges.com
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THE WALL STREET JOURNAL.
NY/NE
Friday, December 8, 2017 | M13
ADVERTISEMENT
Distinctive Properties & Estates
VERMONT
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M14 | Friday, December 8, 2017
THE WALL STREET JOURNAL.
NY / NE
MANSION
RELATIVE VALUES
HOMES WITH THEIR OWN ICE RINKS
STEVE GIRARD (INSET); SAM GRAY
FROM LEFT: TOMMY ELLIS (2); ANNA PECORARO (2)
Luxury homes for sale that have places for skating or team sports; in Massachusetts, a two-story hockey house with a Zamboni garage
$8.3 million
$7.7 million
Dedham, Mass.
Seven bedrooms, seven full bathrooms, three half-baths
$1.35 million
Colorado Springs, Colo.
Six bedrooms, six full bathrooms, two half-baths
This classic shingle-style, three-story, 13,629-square-foot house
sits on more than 22 acres. The property features a covered outdoor ice rink. Overlooking the rink is a two-story hockey house
with a locker room, bathroom, living room with observation deck,
and Zamboni garage. There is also a pool. The home, built in
2007, has a wine cellar, billiards room and exercise room.
Agent: Jay Boyle, Landvest
A 1961 ranch house turned Tuscan villa in a 2008 renovation has
an ice-hockey arena with an electronic scoreboard and a skybox
viewing area with a bar and pool table. The property—more than
19 acres—also has a tennis court and saltwater pool. The 14,431square-foot home, with views of Pikes Peak, features four fireplaces; a fifth is located outdoors.
Agent: Tim Clark, LIV Sotheby’s International Realty
Bloomfield Hills, Mich.
Five bedrooms, four full bathrooms, two half-baths
This three-level, 6,828-square-foot Colonial, built in 1963 and remodeled in 2013, has an indoor ice rink with boards. The home
has a spacious kitchen with two granite-top islands. There are
fireplaces in the kitchen, living room, family room and outdoor patio. Boxwood hedges surround the outdoor, in-ground pool.
Agent: John Apap, Signature Sotheby’s International Realty
—Sandra Ward
ADVERTISEMENT
Distinctive Properties & Estates
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To advertise: 800-366-3975 or WSJ.com/classifieds
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Source: 2015 Ipsos AffluentSur vey; Total Brand Footprint: Past 30 days, WSJ print, WSJDN website, mobile app, digital
edition/issue, social media websites and other electronic media.
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THE WALL STREET JOURNAL.
Friday, December 8, 2017 | M15
NY / NE
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THE WALL STREET JOURNAL.
M16 | Friday, December 8, 2017
MANSION
MAKING WAVES San Diego’s Pacific Gate,
above, plans to offer residents a fleet of four
luxury vehicles and a boat, left.
n-
fering similar perks. In Manhattan, residents at the Solaire can use ReachNow, a
BMW-owned car-sharing service. The service, launched in
2015, has allowed Angeli Gianchandani to get rid of her
car and a nearby parking
spot that cost $700 per
month.
Ms. Gianchandani says the
car-sharing amenity is just
one of the environmentally
friendly offerings of the 293unit building, which already
uses solar energy and green
cleaning products. “It really
played into all of the values
of the building,” says Ms. Gianchandani, a marketing executive who pays about $90
per day for the service.
After moving into 50
West, a condo building in
New York’s Financial District, Birgit Gregori was hesitant to part with her car,
which she wanted to use for
weekend trips with her husband and two teenage sons.
So she uses DropCar, an appbased valet service that will
park residents’ cars within
4½ miles of their building
and deliver it to the front
entrance at a scheduled
time. The building’s developer, Time Equities, contracted with the valet
startup to offer the service
to residents at a reduced
rate. For Ms. Gregori, DropCar is far cheaper than paying $700 a month for her to
park her car in a nearby garage. In addition to valet service, DropCar offers a $15
per hour driver-waiting service. Ms. Gregori uses it
MARKET SHARE In Manhattan, residents at the Solaire can use
ReachNow, a BMW-owned car-sharing service.
when she needs a driver wait
with her car when she’s hopping in and out of her vehicle for errands. “This gives
me flexibility,” she says.
Some developers of buildings that offer transit amenities are already seeing a
downturn in parking interest
from residents, says Greg
West, president of Zom, an
Orlando-based luxury-apartment developer. Currently,
23% of residents opt to rent
at the developer’s 2,000 or
so downtown Miami-based
apartments without parking-a number that grows annually, he says. Zom’s parking
garages are now at least 30%
smaller than those in the developer’s previous buildings.
Front entrances offer larger
driveways to accommodate
car sharing, he adds.
At one of its buildings, the
developer recently turned
part of an underutilized
parking garage into a dog
run. “We really have to think
about our buildings with
people arriving more often
on their feet or in someone
else’s car,” he says.
Some developers are getting more creative about
how parking spots are used.
At Centro in Miami, developer Harvey Hernandez
worked with the city to allow residents to use about
300 parking spots at a
nearby office building that
sit empty on weeknights and
weekends—exactly when the
building’s residents need it
most. In hurricane-prone Miami, underground garages
can be especially costly to
construct, he said; by avoiding the expense, he was able
to keep sales prices lower
for units in the building.
Mr. Hernandez spent six
months negotiating with the
city to demonstrate that the
modification would not be a
drain on nearby parking
availability. It worked. Because of the competitive
pricing, units “basically flew
off the shelves,” says Mr.
Hernandez. Centro’s 352
units, which range from
$190,000 to $500,000 were
all sold pre construction for
nearly 20% less than comparable units in buildings with
on-site parking.
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CLOCKWISE FROM LEFT: BOSA DEVELOPMENT; HUNTER KERHART; REACHNOW
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
READY TO ROLL At 50 West, a condo building in New York’s financial district, Birgit Gregori, top left, uses DropCar, an app-based valet service, for running errands
with her husband and two teenage sons. Ms. Gregori, above, relaxes in her apartment with sons Max and Ben.
no
Continued from page M1
creasingly offering car-rental
and car-sharing services, as
well as creative parking solutions to their residents.
Touted as an amenity to upscale buyers, these services
benefit developers, too, since
they reduce the size of parking garages and lower building costs.
“For developers, it’s a
drain on economics” to build
parking garages, says Todd
Runkle, an Austin-based
principal at global design
firm Gensler, which specializes in commercial development. “We are in a transitory period to see how much
we can reduce parking.”
Gensler is also designing
some parking structures
with level floor slabs that
can more easily to convert to
office space or residential
living spaces once parking
ramps are removed, he adds.
Fueling the trend are municipalities—including New
York, Miami and Chicago—
that have eased minimum
parking requirements when
developers offer alternative
transportation options. The
goal is to reduce traffic congestion and free up street
parking.
At 1000M, a luxury 74story tower scheduled to begin construction next year in
Chicago, developer JK Equities will provide an average
1.3 parking spots per unit,
says Jordan Karlik, principal
at the New York-based developer. To encourage car sharing and ease traffic in the
garage, the building will provide a luxury SUV and driver
to transport homeowners to
places within a three-mile
radius.
Scheduled for completion
in 2021, 1000M will have 323
condo units that range from
$557,000 to $8.5 million,
based on preliminary pricing.
The SUV service will be
available on a first-come,
first-served basis. Anticipating that demand for the car
service will be strong, the
company plans to lease leftover parking spots in the garage to car-sharing services,
Mr. Karlik says. Still, the
units are more marketable
with the in-building parking
option, he adds. “People are
still attached to their cars.”
Likewise, Pacific Gate in
San Diego still offers two
parking spaces to buyers of
two- and three-bedroom
units, even as it offers a fleet
of four luxury vehicles and a
boat. The transportation amenity is offered to draw in buyers rather than reduce parking spots, says Bemi Jauhal,
director at San Franciscobased Bosa Development.
Buyers “want their cars, but
don’t realize they won’t use
their cars,” she says.
When Lisa Haile moves
into her three-bedroom condo
at Pacific Gate in March,
she’ll bring her Maserati but
sell her luxury SUV. Owning
two cars “won’t make sense
anymore,” says Ms. Haile, an
attorney who is relocating
from a single-family home in
San Diego.
Ms. Haile declined to disclose the price of her condo,
but similar units in the
building are listed for $2.8
million. While use of the
shared vehicles is free,
roughly $106 of residents’
monthly fees will go toward
the transportation amenity,
according to San Franciscobased Bosa Development.
Luxury rental units are of-
KELLY MARSHALL FOR THE WALL STREET JOURNAL (3)
DON’T PARK IT HERE
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