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The Wall Street Journal December 12 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.
TUESDAY, DECEMBER 12, 2017 ~ VOL. CCLXX NO. 138
* * * * *
DJIA 24386.03 À 56.87 0.2%
NASDAQ 6875.08 À 0.5%
STOXX 600 389.05 g 0.1%
10-YR. TREAS. g 1/32 , yield 2.387%
HHHH $4.00
WSJ.com
OIL $57.99 À $0.63
GOLD $1,243.70 g $1.50
Business & Finance
provision in the Senate tax plan could lead
to a higher tax bill for millions of individual investors
and cause many to unload
stocks before year-end. A1
A
BY MICHAEL WURSTHORN
AND VERONICA DAGHER
A little-discussed provision
in the Senate tax plan could
lead to a higher tax bill for
millions of individual investors
and cause many to unload
stocks before year-end to
avoid those costs.
Under the Senate’s $1.4 trillion tax overhaul, investors
would lose the ability to
choose which shares they can
sell to reduce a position. Instead, investors selling partial
stakes in a company would
have to unload their oldest
shares first, a process known
as selling on a “first-in, firstout” basis.
Selling those shares usually
brings a higher tax bill if the
stock’s price has been rising.
Some small investors are fuming that the new rule would
cause them to pay much more
in taxes.
Troy Jenkins, a 39-year-old
engineer in Auburn, Pa., expects to sell his remaining
stocks before the end of the
year because of the tax proposal.
“It doesn’t have the interest
of all Americans in it,” he said.
The impact could be even
greater for his 93-year-old
grandmother who has been
living off income from her
AT&T stock that her late husband accumulated when he
worked for its Western Electric unit. Mr. Jenkins said the
proposal would force his
Please see TAXES page A6
Web-driven comparison
shopping has helped keep a
lid on inflation, complicating
the Fed’s rate decisions. A1
SoftBank has agreed to
invest roughly $500 million
more in satellite broadband provider OneWeb. B1
HSBC is set to be released
from its deferred-prosecution agreement with the Justice Department. B10
Mario Batali stepped
down from operations at his
restaurant firm after sexualmisconduct allegations. B6
Mattel warned of another
gloomy holiday season as its
key toy brands struggle. B3
World-Wide
A Bangladeshi immigrant
inspired by Islamic State set
off a pipe bomb at a New York
City transit hub, but the explosive fizzled, burning him
and injuring three others. A1
Alabama’s special election
to fill Sessions’ former Senate
seat comes to a high-stakes
conclusion on Tuesday. A3
A judge denied a renewed
bid by the administration to
prevent transgender people
from joining the military. A3
ly
.
Botched attack creates
rush-hour snarl; suspect
cites Islamic State as
he, three others hurt
A 27-year-old Bangladeshi
immigrant inspired by Islamic
State internet propaganda set
off a pipe bomb strapped to
By Zolan KannoYoungs, Melanie
Grayce West and Paul
Berger
his body as he blended with
rush-hour commuters in one
of New York City’s busiest
transit hubs Monday morning,
authorities said, but the explosive fizzled, burning him and
injuring three others.
Akayed Ullah, an electrical
worker, detonated the lowtech device at about 7:20 a.m.
in a crowded passageway that
connects the massive Port Authority Bus Terminal and Manhattan’s
crowded
Times
Square subway station, police
said. He had taken the subway
from his home in Brooklyn.
Other than a traffic violation,
the former livery car driver
had not appeared on authorities’ radar.
Such an attack has long
been feared in the packed subways that keep America’s most
populous city running, but
Bitcoin Leaps Into the Future
The anticipated launch of bitcoin futures trading fueled exuberance
for the digital currency. Contracts expiring in January rose through
the day, settling 24% higher than the first recorded trade. B1
Value of bitcoin in dollars, at one-minute intervals
The planned overhaul of
U.S. corporate tax law came
under attack from finance
ministers in Europe. A8
Trump’s chief trade adviser issued his first detailed
criticism of the WTO. A8
Putin paid a surprise visit
to a military air base in Syria,
a bid to showcase Russia’s
rising Mideast influence. A7
The administration will
nominate as envoy to Seoul a
Korea expert who favors a
tough line on Pyongyang. A11
The White House opposed
fresh calls for Congress to investigate allegations of sexual misconduct by Trump. A4
Lawmakers are moving
to change procedures for
reporting sexual harassment on Capitol Hill. A4
The FDA plans new medical-device approval processes
to speed market entry. A5
Saudi Arabia lifted a decades-old prohibition on
movie theaters. A9
CONTENTS
Business News B3,5-6
Capital Journal...... A4
Crossword.............. A15
Heard on Street. B12
Life & Arts...... A13-15
Markets............. B11-12
Opinion.............. A17-19
Sports........................ A16
Streetwise............. B10
Technology............... B4
U.S. News............. A2-6
Weather................... A15
World News...... A7-11
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
Terror Suspect
Akayed Ullah, age 27, of
Bangladesh
Came to the U.S. legally
in 2011 on immigrant visa
for relatives of U.S. citizens
In custody at hospital
with burns from explosion
New York was fortunate Monday: there was mainly inconvenience.
President Donald Trump
took aim at the type of visa
used by Mr. Ullah, which is
granted to siblings of immigrants, while also calling on
Congress to make changes to
U.S. immigration policy.
“America must fix its lax
immigration system, which allows far too many dangerous,
inadequately vetted people to
Please see ATTACK page A2
Suspect described as ‘always
on edge’........................................ A2
High-Tech Hedge Fund Finds
Limit of Robot Stock Picking
Using machine learning to invest is hard, two quants with Ph.D.s discover
Trading halts
18,000
BY BRADLEY HOPE AND JULIET CHUNG
17,000
16,000
Schools, employers look to
retain tuition break................ A6
House plan lets charities be
political.......................................... A6
U.S. tax changes draw ire
abroad............................................ A8
End-of-year passage can spell
trouble for paychecks............ B1
Futures contract expiring in January
$19,000
Spot price
no
A wildfire in Southern
California threatened new
areas as it pushed west into
Santa Barbara County. A3
Bomber Jolts New York Commute
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Icahn plans a new board
fight with Xerox in an attempt to find a new CEO. B2
Officials stepped up security following Monday’s attempted bombing in New York, a city that experts called a ‘soft target.’ New York
Police Department officers stand guard, above, near the bus terminal where the attacker tried to detonate a pipe bomb.
n-
Tech and energy shares
lifted the Dow and S&P 500
to records. The industrials
rose 56.87 to 24386.03. B11
DREW ANGERER/GETTY IMAGES
Comcast ended its pursuit
of 21st Century Fox assets,
leaving Fox in position to finalize a deal with Disney. B1
Bitcoin futures expiring
in January settled at $18,545,
up 24% from the first trade
value, in the debut of futures
on the digital currency. B1
Bitcoin exchanges and
brokerages have experienced
service outages amid surging
interest among investors. B4
YEN 113.56
Stock
Investors
Face New
Tax Hit
What’s
News
Verizon’s new streaming
deal with the NFL trades mobile exclusivity for rights on
Yahoo and other platforms. B1
EURO $1.1771
15,000
14,000
6 p.m. Sunday
Monday
6 a.m.
Noon
Sources: SIX Financial (futures); Cboe (halts); CoinDesk (bitcoin)
Online Price Wars
Vex Fed on Inflation
BY HARRIET TORRY
AND LAURA STEVENS
Holiday shoppers with
smartphones can retrieve instant price comparisons that
make bargain hunting easier—
and the Federal Reserve’s job
tougher.
Web-driven
comparison
shopping complicates Fed decisions on how much and how
fast to raise interest rates.
Consumer knowledge is keeping a lid on prices that retailers can charge on a wealth of
goods, a small but growing
factor holding down inflation
in the U.S., Japan and other
advanced economies
The Fed is likely to announce Wednesday the raising
of its benchmark short-term
rate by a quarter percentage
point, to a still-low range of
1.25% to 1.50%. Officials also
will release their latest projections for the likely path of
rates in the years ahead,
which will influence mortgages, credit cards and other
consumer loans, business borrowing and global financial
markets.
Fed officials, along with
central bankers in Europe and
Japan, want inflation to rise to
an annual rate of around 2%,
considered a healthy level for
spending, business investment
and higher wages. With the
U.S. economy expanding, and
very low unemployment, an
interest-rate increase would
help forestall asset bubbles or
other financial dangers.
Most Fed policy makers
agree they should keep gradually raising short-term rates in
the months ahead to prevent
the buoyant U.S. economy
from overheating. But some
are hesitant because inflation
remains puzzlingly weak, runPlease see RATES page A11
Retailers simplify prices by
doing markdown math......... B3
BERKELEY, Calif.—For Michael Kharitonov, building a hedge fund based on machine learning has been a rule of threes: It
was three times as hard, and it took three
times as long, as anticipated.
“Most of the things we’ve tried have
failed,” said the co-founder of a little-known
firm called Voleon Group.
Machine learning, a set of techniques that
empowers computers to find patterns in
data without using rules prescribed by humans, has been producing advances in a
range of fields, from robotics to weather
forecasting to language translation. The
INSIDE
technique is at the heart of efforts to build
self-driving cars.
Why not use it to crack financial markets?
The notion has led to an arms race of sorts,
as multibillion-dollar investment firms that
already were mathematically focused have
been signing up the smartest computer scientists and statisticians they can find.
The gambit seems to be working for two
of this year’s top-performing hedge funds.
Quantitative Investment Management LLC,
up 68% this year in its biggest fund, attributes its success to the technique. Teza Capital Management LLC credits machine learning in part for its more than 50% gain so far
Please see ROBOTS page A12
Florida Sleuths Investigate the
Mystery Ships of Hurricane Irma
i
i
i
Storm churns up a Soviet relic, an ancient
canoe and a sailboat crewed by dummies
PLEASE HUG
AN EAGLES
FAN
JASON GAY, A16
TASMANIAN
TIGER’S
GENETIC TALE
WORLD NEWS, A9
BY JOHN CLARKE
The day after Hurricane
Irma hit Florida, Randy Lathrop jumped on his bike at first
light to assess the damage.
He soon spotted
something exceedingly peculiar. The
62-year-old photographer from Cocoa,
Fla., was pedaling
along Indian River
Drive under swirling clouds, he says,
when he saw a
rough wooden object resembling a
canoe.
He took a photograph and
texted it to an archaeologist
friend, writing “WTF!!!!” His
friend replied that it looked
like an ancient dugout.
Was that even possible?
The mystery ships had ar-
rived. Mr. Lathrop’s find,
which set off an official effort
to trace its provenance, was
among a barrage of vessels
and assorted flotsam half-sunk
and washed up along southern
Florida’s coast
after the Category 4 hurricane in September.
An enigma
washed up on
Sept. 12 at Dania Beach in a
state park near
Miami, a 12Cuki
foot buoy with
rust-colored vertical stripes.
Park employees who dragged
it off the beach noticed Russian writing on the side.
No one on the spot could
translate it fully, says park
spokesman John Frosbutter.
Please see SHIPS page A12
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 | Tuesday, December 12, 2017
THE WALL STREET JOURNAL.
* ***
U.S. NEWS
CK
CE EF
NT EL
ER LER
Mad
38th St.
W
R
N
Q
ay
dw
34th St.
32nd St.
Sources: Metropolitan Transit Authority; The
Port Authority of New York and New Jersey;
Times Square District Management
Association; Grand Central Terminal; Amtrak
Renée Rigdon/THE WALL STREET JOURNAL.
Akayed Ullah, the Bangladeshi man accused of detonating an explosive device in an
underground passage near Port
Authority Bus Terminal, is a legal U.S. resident angry about
“the plight of Muslims” in the
Middle East, according to a senior law-enforcement official.
A lawyer for Mr. Ullah
couldn’t be identified.
Police on Monday investimost foreigners from six majority-Muslim countries, North Korea, and government officials
from Venezuela is one step to
helping ease security concerns.
The ban doesn’t affect citizens
from Bangladesh. But he added
gated a home on East 48th
Street in Brooklyn’s Old Mill Basin neighborhood.
Alan Butrico, who owns the
house next door, described Mr.
Ullah as “unfriendly.” Mr.
Butrico, who also owns a hardware store on the block, said
Mr. Ullah never said hello and
“would have an attitude” if he
was asked to move his car because it was blocking the
neighboring driveway.
Mr. Butrico’s cousin, Ross
Faillace, who runs a part-time
car detailing shop in the back of
Mr. Butrico’s property, said of Mr.
Ullah: “He was always on edge.”
Police also investigated a
three-story brick building in
Brooklyn’s Windsor Terrace
neighborhood. A neighbor said
the suspect’s family lived on
the block for about a year, but
had moved out about a year
ago. Neighbor Arlene Jograj
said Mr. Ullah’s family seemed
to be observant Muslims.
Ms. Jograj said Mr. Ullah
looked “very Americanized.” She
said she had seen no strange
behavior from the suspect.
“Nothing extremist at all.”
—Corinne Ramey
Congress needs to end familybased immigration.
The administration has
made cracking down on immigration—both legal and illegal—a priority, and officials repeatedly have argued that
vetting for foreigners trying to
come to the U.S. hasn’t been
stringent enough in the past.
Homeland Security Secretary Kirstjen Nielsen said in a
statement that the administration will “fight back” against
terrorists targeting the U.S.
The explosion disrupted
thousands of commuters during
the morning rush hour. Multiple
subway lines were evacuated,
and the Port Authority of New
York and New Jersey closed the
bus station temporarily.
New York Gov. Andrew
Cuomo described Mr. Ullah as a
disgruntled “lone wolf.” Mr.
Cuomo said the suspect downloaded information from the internet on how to make a bomb.
Dressed in cargo pants, a
coat and a sweatshirt on a subfreezing morning, Mr. Ullah was
walking in a crowd of commuters when the device was detonated, according to a Port Authority surveillance camera
video that was confirmed by a
federal law-enforcement official. After the detonation, the
suspect is surrounded in smoke,
before he drops to the ground,
based on the video footage.
Chelsea LaSalle, a 28-yearold graphic designer, was in
Port Authority heading into the
A, C, E subway when dozens of
people started rushing at her.
“People were screaming ‘Get
out, get out’ and some were
yelling ‘Bomb!’” she said.
But the device—which authorities described as a pipe bomb
affixed to the suspect with Velcro
and zip ties—only partially detonated, limiting the damage, officials said. Mr. Cuomo said the explosive chemical in the bomb
went off as planned, but the pipe
didn’t explode.
When police officers arrived
on the scene, they saw wires
trailing between Mr. Ullah’s
jacket and pants, the official
said. When they searched him,
they found that he was carrying a nine-volt battery.
Investigators said Mr. Ullah
described “the plight of Muslims” in the Middle East to investigators, specifically mentioning the Gaza strip, Iraq and
Syria, a senior law-enforcement
official said.
With the exception of the
traffic summonses, Mr. Ullah,
who was taken to Bellevue Hospital to treat his burns, had no
criminal history in New York
City, according to the senior
law-enforcement official.
The police are investigating
reports that he traveled back to
Bangladesh in September of this
year, the senior official said.
—Leslie Brody, Joseph De
Avila and Alicia Caldwell
contributed to this article.
ly
.
Suspect Described
As ‘Always on Edge’
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
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CORRECTIONS AMPLIFICATIONS
Kaiser Permanente is a
nonprofit operator of hospitals. A graphic with a Page
One article Monday about
merger talks between Ascension and Providence St. Joseph Health incorrectly listed
Kaiser Permanente as forprofit.
The name of Ventura, Calif., restaurant Café Zack was
misspelled as Café Zach in a
Page One article Saturday
about California wildfires.
A caption for a photo illustration published Saturday
with a Style & Fashion article
about dresses with sleeves incorrectly referred to a Valentino dress that wasn’t pictured. The caption also failed
to say that the image was a
photo illustration.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
no
© Verdura. All rights reserved.
n-
By email: customreprints@dowjones.com
By phone: 1-800-843-0008
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(Eastern Edition ISSN 0099-9660)
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(Western Edition ISSN 0193-2241)
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42nd St.
.
Ave
Penn Station
More than 650,000
7th
40th St.
8th
THE WALL STREET JOURNAL
daily visitors
ison
.
Ave
Subway
entrances
Ave.
6th
Area of
explosion
5th
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Grand Central
Terminal
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52nd St.
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About 230,000
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In addition to the 200,000 passengers daily who pass through New York’s City’s busiest subway
station at Times Square, the site of the botched bombing is at the center of several high-volume
transit hubs.
.
Ave
AVA I L AB LE AT L A G O S . C O M
BLOOM I NGDALE’S 59TH ST
Continued from Page One
access our country,” he said in
a statement.
A proliferation of Islamic
State-inspired attacks has created new challenges for a police
force that is among the most
sophisticated in counterterrorism, said William Bratton, former New York police commissioner. He said the city of 8
million is a prime “soft target.”
“The reality is that if someone wants to take time to plan
an attack, there’s no shortage
of places they can plan an attack on and in New York City,”
Mr. Bratton said. The pace of
the attacks “has accelerated
which is naturally a concern.”
The investigation into the
incident is being led by the
Joint Terrorism Task Force, a
law enforcement group formed
in 1980 that includes members
of the NYPD and the Federal
Bureau of Investigation.
The attack came just weeks
after an Islamic State-influenced immigrant from Uzbekistan drove a rented truck down
a Manhattan bike lane killing
eight people and injuring 12
more. A New Jersey man was
convicted this fall for planting
homemade time bombs in Manhattan’s Chelsea neighborhood
in September 2016 that injured
dozens of people.
Terrorists “yearn to attack
New York City,” said New York
Mayor Bill de Blasio.
Mr. Ullah came to the U.S.
legally on an immigrant visa for
relatives of U.S. citizens in 2011,
and is a legal permanent resident, said Tyler Houlton, a
spokesman with the Department of Homeland Security.
Mr. Trump said a third version of his disputed travel ban
that limits travel to the U.S. for
In the Heart of the City
9th
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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.
Tuesday, December 12, 2017 | A3
U.S. NEWS
Alabama Race Goes to Wire
Democrats hope for a
rare pickup in South;
GOP tries to preserve
its Senate majority
For Republicans, a victory
by Roy Moore would preserve
their narrow Senate majority
but could prompt calls for a
Senate ethics investigation of
their newest member, who has
been accused of sexual misconduct with teenaged girls, including one who was 14, when
he was in his 30s. He has denied the allegations.
“This man is volatile,” said
Kim Dowdle of Mr. Moore. She
is an Alabama Republican who
is supporting the Democratic
candidate, former U.S. Attorney
Doug Jones. The GOP nominee
“is a ticking time bomb, and he
is going to destroy the party.”
President Donald Trump is
testing the strength of his political coattails by endorsing
the Moore candidacy, albeit belatedly. “We need Roy voting
for us,” Mr. Trump said in a
call recorded to spur GOP turn-
BY JANET HOOK
AND JOSHUA JAMERSON
MONTGOMERY, Ala.—Alabama’s Senate special election
comes to a high-stakes conclusion on Tuesday, after dueling
endorsements from the president and his predecessor in the
Oval Office and $40 million in
campaign spending.
For Democrats, the race to
fill the seat of Republican Attorney General Jeff Sessions is
a rare opportunity to win in
the Deep South and gain another vote in the Senate, where
GOP leaders already struggle to
muster legislative majorities.
out. He added that “if Alabama
elects liberal Democrat Doug
Jones, all of our progress will
be stopped cold.”
Former President Barack
Obama recorded a call for Mr.
Jones to drive turnout for the
unusual pre-Christmas special
election. “This one’s serious,”
Mr. Obama said. “You can’t sit
it out.”
Some Jones supporters
worry the intense national attention to the race might be
helping Mr. Moore. “Down
here, they think Washington is
against them,” said Tony Hill,
an African-American who was
at a soul food restaurant in
Montgomery when Mr. Jones
stopped by on Monday. “So no
matter what they say Roy
Moore did or whatever, as long
as Washington stuck [its] nose
in it…they gonna go on out and
they will vote for Roy Moore.”
State of Play
These counties will give clues to the preferences of several
important voter groups in Tuesday’s special election for a U.S.
Senate seat in Alabama.
Florence
One dot per
100 people
Huntsville
Decatur
A
L
A
B
A
M
African-American Turnout:
Democratic candidate Doug Jones
needs big turnout from these
counties, where African-Americans
account for 50% or more of the
population. This ribbon of counties
backed the Democrat in every
presidential election since 2000 and
each gave Hillary Clinton 59% or
more of their vote in 2016..
A
Birmingham
Hoover
Auburn
Montgomery
Dothan
Mobile
Romney/Not-Moore Counties:
In 2012, nine counties voted for
Mitt Romney for president and
rejected Mr. Moore for the state
Supreme Court on the same ballot.
A weak showing here would be a
bad sign for Mr. Moore.
Upscale, Establishment Republicans: Mr. Moore lost these three
counties in his September primary
win. All have higher incomes and
college education rates than the
state average. Mr. Moore wants to at
least be close in vote-rich Madison
County (Huntsville), where residents
are among the state’s wealthiest.
Sources: U.S. Election Atlas
Atla (results); Alabama Secretary of State (election);
Association of Re
Religion Data Archives (base); U.S. Census (density)
Gulf Shores
THE WALL STREET JOURNAL.
Transgender People Can Join Military
no
WASHINGTON—A federal
judge denied a renewed bid by
the Trump administration to
prevent transgender people
from joining the U.S. military,
ordering Monday that such recruits be allowed to join beginning Jan. 1.
The military announced it
would begin admitting transgender recruits in light of the
latest order by U.S. District
Judge Colleen Kollar-Kotelly,
which upholds an earlier ruling. But hours later, the Justice
Department on Monday night
filed an emergency request
with an appeals court asking
to keep the ban for now.
While the Justice Department attempts further court
intervention, Sarah Huckabee
Sanders, the White House
spokeswoman, said at a news
briefing that the Pentagon is
“preparing to implement a
previous policy to remain in
compliance” with Judge Kollar-Kotelly’s order.
Advocates for open service
praised the ruling, saying the
Pentagon has had plenty of
time to prepare to allow transgender individuals in the military. “Today’s announcement
that the U.S. military will accept
transgender
appli-
n-
BY GORDON LUBOLD
AND BRENT KENDALL
California Fire Grows,
Threatens More Homes
BY JIM CARLTON
AND ALEJANDRO LAZO
A Southern California wildfire exploded to 230,000 acres
over the weekend and threatened new areas Monday as it
pushed west into Santa Barbara County, including toward
the upscale town of Montecito.
The sprawling blaze known
as the Thomas fire has roared
from the Ventura area northwest of Los Angeles into the
rugged mountains of Santa Barbara
County—surging
to
230,000 acres Monday from
148,000 acres on Saturday, according to estimates by the California Department of Forestry
and Fire Protection, or Cal Fire.
It is fanned by Santa Ana winds
that have set much of Southern
California ablaze since Dec. 4.
With about 800 homes already destroyed in Ventura
County, the fire Monday continued to threaten 18,000 more, including in Santa Barbara County
coastal communities.
Mandatory evacuation orders were issued Sunday in
parts of communities including
Montecito, where a message
posted Sunday on actor Rob
Lowe’s Twitter account said:
“Praying for my town. Fires
closing in. Firefighters making
brave stands. Could go either
way. Packing to leave now.”
A celebrity neighbor, talkshow star Ellen DeGeneres, also
THE NEW HOME & ACCESSORIES
COLLECTION
800 843 3269
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Tuscaloosa
Selma
Moore’s Base: Republican candidate
Roy Moore wants high turnout from
four northwest counties that gave
Mr. Trump at least 73% of the vote in
2016. Nearly half of residents here
identify as evangelical Christian.
The two candidates were
holding election-eve rallies on
Monday with big-name celebrities—former basketball star
and Auburn University graduate Charles Barkley at the
Jones rally; former Trump
strategist Steve Bannon at the
Moore rally.
The latest polls underscored
the unpredictability of the
race. One poll by Fox News
gave Mr. Jones a 10-percentage-point lead. Another by Emerson College gave Mr. Moore a
nine-point edge. The Real Clear
Politics average of recent polls
puts Mr. Moore in the lead by
2.2 points.
In an email to supporters,
Mr. Moore applauded the Emerson College poll that showed
him in the lead and dismissed
the Fox poll as an “outlier.”
The drama is remarkable
because the election initially
had been expected to be a
slam-dunk GOP victory.
The bright GOP prospects
dimmed when Republicans, after two rounds of voting, nominated Mr. Moore and rejected
sitting Sen. Luther Strange,
who was endorsed by Mr.
Trump in the primary.
Mr. Moore had built a core
following statewide as chief
justice of the state Supreme
Court, a job he lost twice because he refused to obey court
orders to take down a Ten
Commandments monument on
state property and to allow
same-sex marriage. That made
him a hero to evangelical conservatives in the state, but limited his appeal among establishment Republicans.
Then, in early October, his
campaign was upended by multiple allegations of sexual misconduct and assault against
minors.
Mr. Jones is less known, but
with significant credentials.
While serving as U.S. attorney,
he made a big splash when he
prosecuted Ku Klux Klansmen
for the 1963 bombing of a Birmingham church that killed
four black girls.
—Julie Bykowicz
contributed to this article.
©T&CO. 2017
* * * *
said Sunday on Twitter that
her home was threatened. “We
just had to evacuate our pets.
I’m praying for everyone in our
community and thankful to all
the incredible firefighters.”
Over the weekend, progress
was made on many of the other
five major fires throughout
Southern California, with significant containment reached
on three fires in Los Angeles
County and one in San Diego
County, fire officials said. The
Liberty Fire in Riverside County
was completely contained.
But the Thomas fire that
started in Ventura County remains stubbornly out of control.
It damaged homes, businesses,
farmland and infrastructure.
One fatality has been reported.
Disruptions include the indefinite closure of Aera Energy LLC’s big oil field just
outside the city of Ventura.
The fire burned through
part of the seven-square-mile
field last week, forcing Aera,
of Bakersfield, Calif., to suspend its production of 12,000
barrels a day until lost power
can be restored, spokeswoman
Michele Newell said Sunday.
The Santa Ana wind conditions are expected to end by
Friday, with a return to cool,
moist air from the Pacific, according to the National
Weather Service. Weakened
winds slowed the fire’s advance most of the day Monday.
cants…reflects a simple reality:
military and civil servants in
the Pentagon have been preparing for accession for transgender Americans for more
than two years,” said Aaron
Belkin, director of the Palm
Center, an advocacy institution
in San Francisco.
President Donald Trump
first announced on Twitter in
the summer that transgender
individuals wouldn’t be allowed to serve in the military,
a reversal of the Obama administration policy.
Judge Kollar-Kotelly in October blocked implementation
of Mr. Trump’s planned ban,
ruling it was likely unconstitu-
tional. She said challengers to
the ban had made strong
claims that Mr. Trump’s order
wasn’t based on legitimate
concerns about military effectiveness but instead was driven
by a desire to express disapproval of transgender people.
The administration recently
filed an appeal of that ruling
and asked Judge Kollar-Kotelly
to delay the effect of her earlier injunction against denying
admission to transgender individuals. The judge on Monday
declined, rejecting the administration’s argument that the
military would be irreparably
harmed if it were required to
begin admitting such people.
|
TIFFANY.COM
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THE WALL STREET JOURNAL.
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.
A4 | Tuesday, December 12, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
A Window Opens for North Korea Diplomacy
CAPITAL JOURNAL
By Gerald F. Seib
It isn’t clear how many
more windows of opportunity
there will be to resolve the
confrontation over North Korea’s nuclear weapons program peacefully, but one is
opening right
now.
Whether
North Korean
leader Kim
Jong Un is interested in taking advantage of this chance
to avoid disaster is, of course,
a different question entirely.
Despite an increasingly ominous public atmosphere, diplomats and Korea-watchers
actually see a moment of opportunity—perhaps a fleeting
one—at hand. After a flurry of
activity in the first half of this
year, the pace of nuclear and
missile tests by North Korea
has slowed considerably in recent weeks.
North Korea mounted 23
nuclear or missile tests
through August of this year,
according to a tally kept by
the Center for Strategic and
International Studies, a rush
of action that seemed designed to challenge the newly
inaugurated President Donald
Trump. But it has staged only
three such acts since September, the latest a missile firing
on Nov. 28.
Though the reasons for the
slowdown are impossible to
discern, the history of North
Korean behavior suggests the
lull might continue for several
more months. A CSIS log of all
North Korea’s provocative acts
since 1984, including nuclear
and missile activity, shows a
sharp drop-off in the months
of December, January and
February. That traditional lull
seems tied to, among other
things, military training
schedules.
North Korea’s provocative
behavior then tends to pick up
in March and April, often in
response to springtime military exercises conducted by
the U.S. and South Korea. But
as long as a slowdown lasts it
cools the international political climate and makes it easier
for all sides to slide into talks.
“The space for dialogue
War Games
The frequency of North Korea's
missile and nuclear tests in 2017
has declined since mid-year.
Short-and-medium range missiles
Intermediate-range ballistic missile
Intercontinental ballistic missile
Unknown
Nuclear test
5 tests
4
3
2
1
0
J F M A M J J A S O N
Source: Center for Strategic and
International Studies
THE WALL STREET JOURNAL.
may therefore be limited to
the next three months when
we can expect fewer provocations from North Korea,” concludes an analysis by CSIS Korea expert Lisa Collins.
This winter, the traditional
lull may be affected by a new,
unique factor. South Korea
hosts the Winter Olympic
Games in February, followed
by the Paralympic Winter
Games in March. South Korea
clearly wants the Olympics to
go smoothly, so it is unlikely
to sanction any joint pre-emptive military actions with the
U.S. until after the Games are
finished.
It’s harder to determine
how North Korea will behave
during the Olympics. A clear
signal will come when Pyongyang reveals whether two
North Korean athletes who
have qualified for the Olympics are allowed to travel to
South Korea to take part.
In any case, a flurry of
quiet diplomatic efforts are
under way right now to use
the slowdown in provocative
behavior, as well as recently
applied economic pressure, to
open diplomatic doors that
might bring North Korea into
negotiations.
Jeffrey Feltman, a former
American diplomat who now
is the United Nations undersecretary general for political
affairs, just finished a visit to
North Korea, a rare trip there
by a top U.N. official. In addition, diplomats say, the British, Canadians and Swedes are
sending out feelers.
And Chinese President Xi
Jinping, who may have the
best chance of either coaxing
or badgering North Korea to a
negotiating table, sent a special envoy to Pyongyang several weeks ago.
There is another avenue for
getting diplomacy started: socalled Track 2 diplomacy. That
term refers to sporadic, unofficial conversations between
Americans who aren’t in government and North Korean officials who can talk more candidly because they aren’t
engaged in formal negotiations.
These Track 2 talks have
been held sporadically in recent years, including since the
Trump administration took office. But diplomats say an effort to hold a new round recently in London wasn’t
successful because North Korean representatives weren’t
interested.
As that suggests, the real
obstacle to diplomatic efforts
lies in Pyongyang, not in
Washington. Though most experts think President Trump’s
periodic schoolyard-style
taunting of North Korea’s
leader isn’t helpful, his administration has been open to negotiations with North Korea.
Mr. Trump has made that
clear, as has Secretary of State
Rex Tillerson.
The U.S. still has ample reason to hope that diplomatic
efforts can stop the North Korean nuclear program where it
stands now. Despite North Korea’s boast that its most recent missile test marked
the “completion of the rocket
weaponry system,” it still
hasn’t accomplished all the
technical feats necessary to
have a fully functional nuclear-weapons capability.
While Pyongyang has
launched missiles that apparently have the ability to reach
the U.S., it hasn’t shown they
can travel that far carrying
the heavy payload of a nuclear
weapon, or that they can reenter the atmosphere carrying
such a weapon without breaking up. Nor has Pyongyang
shown it can fire a ballistic
missile from one of its submarines, which it would need to
do to have a nuclear arsenal
that could survive an American strike.
So there remains reason to
hope diplomacy combined
with economic pain can prevent the worst outcome. A
window is open—for now.
Expert with hawkish bent is
in line as envoy to Seoul.... A11
Congress has shielded itself
from oversight through the
years, exempting itself from
open-records laws and setting
up a way for taxpayers to pick
up the tab for lawmakers who
settle misconduct cases. To report sexual harassment, employees must report to the Office of Compliance, where the
accuser must go through a 90day “mandatory dispute resolution process,” the first step
of which is counseling.
Lawmakers are looking at
overhauling the system for filing and settling harassment
claims from congressional employees. A bipartisan bill
dubbed the “Me Too Congress
Act,” has 115 bipartisan sponsors. The bill eliminates requirements that complainants
sign nondisclosure agreements
as a condition for filing,
waives the requirements for
counseling and mediation, and
creates an online system to
initiate complaints.
The bill would also require
lawmakers to pay out of
pocket for any settled claim
where they are identified as
the harasser.
Other lawmakers have also
introduced legislation to block
lawmakers from using taxpayer dollars to settle claims.
Taxpayer dollars have been
used to pay settlements for at
least three House lawmakers
accused of sexual harassment.
“I’m just outraged that taxpayer dollars were used for
this,” said Rep. Mike Coffman
(R., Colo.), who introduced legislation to ban the use of taxpayer funds to settle harassment cases.
His co-sponsor, Rep. Mia
Love (R., Utah) called for Rep.
Blake Farenthold (R., Texas) to
resign after reports that Mr.
Farenthold used taxpayer
funds three years ago to settle
a sexual-harassment claim by
an employee for $84,000.
ANDREW KELLY/REUTERS
situation. Last month, both the
Senate and House of Representatives passed measures requiring annual sexual-harassment training for lawmakers
and staff.
With just two weeks until
the Christmas holiday, and
Congress focused on a tax
overhaul and a spending bill, it
could be difficult to pass
something by the end of the
year. A spokeswoman for the
House administration committee, which is handling the review, said the chairman plans
to make policy recommendations to Mr. Ryan in the coming weeks.
no
n-
WASHINGTON—Lawmakers are moving to change procedures for reporting sexual
harassment on Capitol Hill and
how settlements are funded,
after Congress was shaken last
week by more allegations of
improper behavior and three
resignations.
Lawmakers are looking inward at their own policies in
the wake of the “Me Too”
movement, which has created
a national outpouring of personal stories involving sexual
harassment and assault in the
workplace.
“When I got here, I didn’t
even think about, I just assumed the House had it all
buttoned up,” said Rep. Bradley Byrne (R., Ala.). “When I
started digging into it a few
weeks ago when all of these allegations came up, as a labor
employment professional, my
first reaction was, ‘Oh my god,
they don’t have a lot of this
buttoned up.’ ”
Among the changes he
wants: a formal rule that lawmakers cannot have sexual relationships with their staff.
House Speaker Paul Ryan
(R., Wis.) has promised a
“comprehensive review” of the
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BY NATALIE ANDREWS
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Lawmakers Vow Changes Amid Sex-Harassment Furor
Rachel Crooks, left, a former receptionist in Trump Tower in 2005, Jessica Leeds and Samantha
Holvey, a former Miss North Carolina, spoke at a news conference in New York on Monday.
White House Rejects Inquiry
On Trump’s Sexual Conduct
BY REBECCA BALLHAUS
CLASSIC FUSION
RACING GREY
The White House on Monday opposed fresh calls for
Congress to investigate allegations of sexual misconduct by
President Donald Trump and
demands from Democratic
lawmakers that he resign, saying any questions about Mr.
Trump’s behavior were answered by last year’s election.
During the 2016 campaign,
more than a dozen women
publicly alleged sexual misconduct by Mr. Trump. In October
2016, a 2005 videotape
emerged of Mr. Trump making
lewd comments about groping
women. At the time, Mr.
Trump said his comments in
the video amounted to
“locker-room talk” and said
they didn’t reflect real actions.
At Monday’s briefing, White
House Press Secretary Sarah
Huckabee Sanders was pressed
repeatedly about the administration’s stance that Mr.
Trump’s accusers are lying.
“The president has addressed these accusations directly and denied all of these
allegations,” she said. “And
the people of this country, at a
decisive election, supported
President Trump, and we feel
like these allegations have
been answered through that
process.”
The renewed focus on Mr.
Trump comes as Washington
has been shaken by claims of
mistreatment of women, part
of a broader phenomenon that
has rippled through media, entertainment and other businesses. On Capitol Hill, sexualmisconduct allegations led to
Three women urged
Congress to investigate
their allegations
against the president.
resignation announcements
from three lawmakers last
week, including Sen. Al Franken (D., Minn.).
Three women who accused
Mr. Trump of sexual misconduct held a news conference
Monday in New York to press
Congress to investigate the allegations against the president. Rachel Crooks—who said
she was forcibly kissed by Mr.
Trump while working at
Trump Tower as a receptionist
in 2005—said: “I ask that Congress put aside their party affiliations and investigate Mr.
Trump’s history of sexual misconduct.”
In recent days, a growing
number of Democratic senators have called for Mr. Trump
to resign over the allegations.
Sen. Kirsten Gillibrand (D.,
N.Y.) on Monday said in an interview that the women’s allegations were “credible.” She
said that “President Trump
should resign.”
Sexual-misconduct claims
have also threatened to derail
Republican Roy Moore’s Alabama Senate run. He has denied allegations of sexual misconduct by women who say
they were teenagers and Mr.
Moore was in his 30s when he
pursued them. The election is
Tuesday.
Any investigation into the
president’s behavior would
likely be handled by the judiciary committees in each
chamber. The Republican-controlled Congress has shown no
interest in investigating the
misconduct claims against Mr.
Trump.
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.
Tuesday, December 12, 2017 | A5
* *
U.S. NEWS
BY ARUNA VISWANATHA
AND DEL QUENTIN WILBER
A telecom software company agreed to resolve a criminal investigation of its use of
uncleared Russian nationals in
Russia to work on a U.S. defense project. The company
will implement a security plan
that U.S. officials hope will
serve as a new industry model.
The Justice Department
said Monday it had agreed not
to prosecute Netcracker Technology Corp., of Waltham,
Mass., in a long-running investigation of its contract with
the Defense Information Systems Agency. That agency provides telecommunications infrastructure for classified and
other networks for the Defense
Department around the world.
In providing services for a
contract that it began negotiating in 2007, Netcracker used
some Russian nationals who
hadn’t gotten security clearances and stored some information on a server in Moscow,
potentially exposing it to Russia security services, according
to a statement of facts released in connection with the
agreement. An extensive background-check system is typically required to clear someone to have access to classified
U.S. government data.
The settlement comes as
companies are trying to address vulnerabilities in their
networks that come from connections with suppliers and
other business partners, in
many cases tightening cybersecurity requirements for
members of supply chains.
U.S. officials have sounded
the alarm about using vendors
with ties to Russia, in particular, because under Russian law,
any data that transits through
that country could be made
available to Russian intelligence agencies.
In September, the Department of Homeland Security
took the step of banning all
federal agencies from using a
popular antivirus software
made by the Moscow-based
Kaspersky Lab, in part because
of Russia’s ability to access
any data on its networks.
In resolving the investigation, Netcracker agreed to implement new security proto-
cols for developing and
implementing software for its
clients and to better regulate
remote access to U.S. client
networks and transfers of sensitive data.
Under the plan, the company will move servers to the
U.S., will not access American
customers’ communications infrastructure from any location
outside the “physical control”
of the customer without written consent, and will limit sensitive data from being routed
outside the U.S., among other
requirements.
Andrew Feinberg, Netcracker’s chief executive, said:
“We appreciate the government’s support of Netcracker’s
program to implement higher
levels of security.”
U.S. WATCH
MONUMENTS
Glitches Seen as
Deadline Approaches
GOP Feud With
Retailer Continues
WASHINGTON—The Food
and Drug Administration plans
new medical-device approval
processes to speed products’
entry to the market, mirroring
the desires of industry and
President Donald Trump to
clear barriers to new business.
FDA Commissioner Scott
Gottlieb, who has long espoused speedier steps to promote innovation, in an interview called for “progressive,”
or stepped, approvals of certain devices that would allow
them to go to market with initial approvals, with further evidence to assess performance
coming later. That would entail
more risk to patients initially
than current procedures where
clinical trials or other evidence
come before market launch.
Some doctors are expressing reservations.
“This change would put
more patients at risk for having
permanently implanted dangerous devices,” said Rita F. Redberg, editor of JAMA Internal
Medicine and a cardiologist and
researcher at the University of
California, San Francisco.
The agency plans to spell
out which products involve
“acceptable uncertainty” about
health risks, said Dr. Gottlieb.
Some examples that he and
other FDA officials pointed to
are ultrasounds and cholesterol blood tests, whose technologies are long understood.
Medical devices are already
regarded as involving more lenient approvals than drugs,
sometimes with bad effects on
patients. In recent years, there
have been health consequences from devices like
metal-on-metal hips that degenerated, uterine-surgery devices called power morcellators that spread cancer and
defibrillator wires that fractured, causing deaths.
A 2015 article in the medical journal JAMA from researchers at Yale University
and elsewhere reported that
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Interior Secretary Ryan Zinke
and House Republicans have escalated their feud with Patagonia after the outdoor retailer
told Americans that President
Donald Trump “stole your land”
in his move to shrink two Utah
national monuments.
The dispute pitting the GOP
against a private company raised
questions about whether Republicans are trying to stop Patagonia sales weeks before the
Christmas holiday.
In a tweet, the House Natural
Resources Committee said Patagonia is “lying” and making the
allegation about Trump’s plan “to
sell more products to wealthy
elitist urban dwellers from New
York to San Francisco.”
The Republican-led committee also sent out a widely distributed email with the subject
line, “Patagonia: don’t buy it.”
A committee spokesman said
Monday the email wasn’t urging
a boycott of Patagonia, but rather
was telling consumers, “Don’t buy
the lies” about Trump’s plan.
—Associated Press
BY THOMAS M. BURTON
A GOOD CAUSE: Craneville School students in Dalton, Mass.,
watched as their fellow student Jack Curtiss, 10, got his head
shaved by his dad Frank as part of a fundraising effort for St.
Baldrick’s Foundation, a cancer charity, on Monday.
JOBS
three and a half years. The rate
improved to 3.8% in October from
3.6% in September, the Labor Department said Monday. That increase matched a postrecession
high achieved three previous
times since late 2015. It has yet
to match prerecession peaks.
The relatively slow pace of
hiring could suggest employers
can’t find the workers they want.
—Eric Morath
Hiring Rate Still
Doesn’t Break Out
The unemployment rate has
fallen to a 17-year low, but the
rate at which employers are hiring has yet to break out.
The hiring rate, or the share of
newly filled jobs to total employment, has remained steady for
no
n-
Consumer advocates reported
some glitches Monday in the final days for “Obamacare” signups, although the Trump administration largely seemed to be
keeping its promise of a smooth
enrollment experience.
In Illinois, some consumers
who successfully completed an
application for financial assistance through HealthCare.gov
got a message saying they
would likely be eligible to buy a
health plan, “but none are available to you in your area.”
That information was incorrect because every county in the
nation currently has at least one
health insurer offering plans under the Affordable Care Act for
next year.
Friday is the last day to enroll
for subsidized private coverage
in 39 states served by the federal HealthCare.gov website.
Consumer interest has remained
brisk, even as the Trump administration cut the sign-up season
in half, reducing it from roughly
90 days to 45 days.
—Associated Press
GILLIAN JONES/THE BERKSHIRE EAGLE/ASSOCIATED PRESS
AFFORDABLE CARE ACT
FDA Backs Fewer
Device Hurdles
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just 13% of postapproval safety
and effectiveness studies of
high-risk medical devices were
completed within three to five
years. Dr. Gottlieb disputes
that the new program will increase risk in a major way.
“We must provide more opportunity to enhance traditional products with new advances and to use these same
innovations to develop fundamentally novel devices altogether,” he said. “We must do
this all while taking steps to
strengthen FDA’s gold standard
for safety and effectiveness.”
Janet Trunzo, senior executive vice president of AdvaMed, a medical-device indus-
FDA Commissioner
Scott Gottlieb has long
espoused speedier steps
to promote innovation.
try group, said, “We commend
FDA’s commitment to promoting patient access to medical
technologies through innovative regulatory pathways.”
Dr. Gottlieb is also urging
another change in the way devices are approved. Thousands
of moderate-risk devices get
approved each year by showing they are substantially
equivalent to other products
on the market.
Under a voluntary program,
companies now will be able to
get devices approved by meeting what he terms “objective
safety and performance criteria.” He says many devices are
as much as 40 years old and
that comparisons to such technologies can be difficult.
Dr. Gottlieb thinks this step
could enhance safety. Instead of
comparing new devices to decades-old technology, the FDA,
he said, will be able to “conform its framework for evaluating new products to international consensus standards.”
ly
.
Firm Settles Russia Probe
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 | Tuesday, December 12, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
Tax Bill
Loosens
Charities’
Restraints
MIKE KANE/BLOOMBERG NEWS
BY JULIE BYKOWICZ
A group of universities and companies including Starbucks, above, are lobbying to include a tax-free tuition benefit in the final version of the Republican tax bill.
Universities and companies
are joining forces to lobby
Congress to keep a provision
that allows employers to give
staff members as much as
$5,250 in yearly tax-free tuition help.
The tax-overhaul package
passed by the Senate this
month includes the provision,
which has been part of U.S.
tax law since the late 1970s.
The House version would require employees to pay taxes
on the benefit.
Congressional leaders are
working to send a final bill to
President Donald Trump by
Christmas.
Hewlett Packard Enterprise Co., Starbucks Corp.
and others say offering taxfree tuition assistance makes
it easier for them to keep and
train employees. Schools say
they could lose thousands of
students if the tuition program is taxed.
The nation’s economic development would be stunted
if employees shy away from
pricey training programs,
they say.
“It becomes a huge disin-
TAXES
Treasury: Growth
Could Pay for Cuts
If the U.S. economy
achieves the rapid growth the
Trump administration says is
possible under its economic
policies, that expansion will
generate enough money to pay
for more than $1.5 trillion in
tax cuts, according to a onepage Treasury Department
memo released Monday.
The memo didn’t analyze
the economic effects of the tax
plan. Instead, it started with the
administration’s assumption of
a steady 2.9% growth rate,
from the president’s budget released in May. Treasury’s Office
of Tax Policy calculated that
such growth—which in the budget depended on a tax plan
along with a range of other fiscal policy changes—would yield
additional tax revenue.
The missing link is how
much growth the latest tax
plan itself might cause, and
Treasury’s tax experts didn’t
assess that claim in the document.
The Joint Committee on
Taxation, the nonpartisan tax
analysts in Congress, said the
House and Senate version of
the tax bill won’t pay for themselves with faster growth and
would instead lead to $1 trillion
in additional budget deficits
over a decade even after assuming economic growth.
Trump administration officials have often said that tax
cuts would pay for themselves
by spurring economic growth.
“The latest Treasury ‘analysis’ is nothing more than one
page of fake math,” said Senate
Minority Leader Chuck Schumer
(D., N.Y.). “It’s clear the White
House and Republicans are
grasping at straws to prove the
unprovable and garner votes for
a bill that nearly every single
independent analysis has concluded will blow up the deficit
and generate almost no additional economic activity to
make up for it.”
—Kate Davidson
and Richard Rubin
centive to take advantage of
postsecondary education and
training opportunities,” said
Terry Hartle, senior vice president of government and public
affairs at the American Council on Education.
The association, which represents nearly 1,800 schools
and education groups, is also
part of a coalition of more
than 80 schools, companies
and trade associations—including Emory University, the
United Auto Workers and
Texas Instruments Inc.—that
is lobbying to include the tax-
free tuition benefit in the final
version of the tax bill.
Many of these same groups
had been pushing to increase
the amount of tuition assistance that could be provided
tax-free.
The benefit has been set at
$5,250 since 1986.
Arizona State University,
which is in the coalition, has
been highlighting the economic case for the program, in
meetings with its local congressional delegation.
More than 9,000 Starbucks
employees attend Arizona
State online through its Starbucks College Achievement
Plan, launched in 2014.
The company covers full tuition for all four years of a
bachelor’s degree in more than
60 subjects for employees who
work an average of at least 20
hours a week.
United Parcel Service Inc.
covers as much as $25,000 in
college expenses for employees working at least part time.
The company said that since
the program began in 1999, it
has provided more than $200
million in tuition assistance to
upward of 120,000 college students.
UPS said it supports the
Senate language maintaining
tuition assistance.
The House bill also would tax
tuition breaks that many colleges and universities offer the
families of employees, including
administrators, faculty members and cafeteria workers.
That tax-free benefit would
also apply to graduate students whose tuition is covered
by their schools.
“The janitor is collateral
damage,” Mr. Hartle said.
co Fo
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BY MELISSA KORN
It’s All in the Timing
n-
The Senate tax bill would do away with an accounting option
that has benefited investors for years. In the example below,
selling the shares purchased most recently—a practice known as
Last In, First Out, or LIFO—results in a reduction in taxes owed.
Stock price
$100
2
no
Continued from Page One
grandmother to sell twice the
amount of stock she normally
would have just to maintain
her income.
“It’s upsetting,” he said.
After the money-management industry argued that the
change would make markets
less efficient, the Senate said
the provision wouldn’t apply
to the firms that manage mutual funds and exchangetraded funds—only to their individual clients.
The House’s tax proposal
doesn’t include the first-in,
first-out provision, and some
lawmakers are trying to kill it.
In a letter to Senate leaders on
Thursday, 41 House Republicans urged their colleagues to
drop the provision, saying it
would amount to “massive,
fundamental change that inhibits investor autonomy.”
Proponents point to a Joint
Committee on Taxation estimate that the rule would raise
as much as $2.4 billion over
the next 10 years, starting in
2018. The JCT also said the
Senate bill would lead to $1
trillion in additional budget
deficits over a decade, even after
assuming
economic
growth.
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.
Firms, Schools Try to Keep Benefit
75
50
1
25
’14
Under current rules, an investor
can choose when selling shares
which lots to designate for
sale—a choice that can sharply
reduce taxes owed on any sale.
TAXABLE
ACCOUNT
0
2012 ’13
3
’15
’16
OUTCOME OF
SELLING AT
$100 PER SHARE
’17
1 Investor buys a stock
at $50 a share
2 Investor buys a second lot of
the same stock at $110 a share
Taxable gain
of $50 per share
Loss of
$10 per share
3 Investor decides to sell
some shares at $100
If the Senate bill takes effect as currently written, all investors would have to
sell shares on a First In, First Out basis, or FIFO—a shift that would raise tax
payments and potentially prompt increased share sales by some investors.
THE WALL STREET JOURNAL.
The Senate recently voted
to start formal tax-bill negotiations with the House, hoping
to get a final bill to the president by Christmas.
Some money managers and
analysts say there has been so
little discussion of the Senate
provision that investors may
be surprised to learn that the
new rule could reduce—or
even wipe out—what they
would save from an incometax reduction.
“If someone thinks their tax
bill is going to get cut next
year, some investors may wait
until 2018 to sell stocks and
then have this huge tax bill”
since they will be forced to sell
their oldest holdings first, said
JJ Kinahan, chief market strategist at TD Ameritrade.
His firm last month sent a
letter to Congress saying the
proposal “inexplicably and unfairly discriminates against the
typical Main Street investor
using a buy and hold strategy.”
Another concern for small
investors: The first-in, firstout provision will make it
more expensive to perform
regular portfolio rebalancing
to keep their mix of stocks and
bonds constant, since the provision will raise the amount of
taxes they pay.
“This discourages investment rather than encourages
it,” Mr. Kinahen said. “That’s
dangerous.”
Many investors may now
sell shares in the next couple
of weeks to avoid the risk of
paying higher taxes, analysts
say, especially those who expect to need cash in the next
few years.
Take the case of an investor
GOP Plan
Could Hit
Robo Advisers
The Senate’s proposed tax
change could also hurt digital
wealth advisers who rely on algorithms to make investment
decisions for investors.
Betterment LLC, a robo adviser with $10 billion in assets
under management, said its
tax-loss harvesting service is a
significant contributor to investors’ gains by prioritizing sales
of share lots that have decreased in value to offset taxes.
But under the tax proposal,
that service would be less effective since the oldest shares
in a position would have to be
sold.
“Investors would be deprived of choice and opportunity
to plan efficiently for retirement
and other important financial
who owns lots of shares in
electric-car maker Tesla Inc.
The first lot was purchased in
early 2013, when Tesla’s stock
had traded at $35.36 a share.
The more recent lot was purchased in June at $360.75 a
share.
This investor wants to sell
some of Tesla stake to withdraw cash from the market on
Dec. 1, when the car marker’s
shares traded at $306.53. If
the Senate tax provision was
already in effect, this person
would be required to sell the
shares bought first before selling any of the shares in the
more recent lot, forcing him or
her to incur a taxable gain of
$271.17 per share.
But under current rules, the
investor would have the option
of selling the shares bought
last. That would generate a
WASHINGTON—A provision
in the tax-code overhaul before
Congress could lead to an infusion of new players in elections,
including churches and charities, and prompt a significant
shift in the way political campaigns are financed.
The House tax bill would allow churches and other nonprofits to advocate for candidates and take political
positions without jeopardizing
their tax-exempt status, rolling
back what is known as the
Johnson Amendment. The Senate plan doesn’t take that step,
meaning it will be one of many
items up for debate as Republican lawmakers work to pass a
law that President Donald
Trump can sign before the end
of the year. The conference
committee is set to hold its first
meeting Wednesday.
Some Republican senators
have expressed interest in
adopting the House’s approach
to the Johnson Amendment.
Sen. James Lankford, an Oklahoma Republican, said Vice
President Mike Pence in a meeting last week had again
“brought it up to me” that the
House change should be included in the final tax legislation.
“The president and vice
president speak often about this
being corrected, in public and
private settings,” Mr. Lankford
said in an interview.
“If Congress is able to use
the tax bill as a vehicle to repeal the Johnson Amendment,
the White House would support
it,” White House spokeswoman
Lindsay Walters said.
It is unclear if Republican
senators will agree to add it to
the final bill, but if they do,
Democratic senators are preparing to fight the move by invoking the Byrd Rule, which
prohibits the Senate from considering nonrevenue matters as
part of any reconciliation bill.
The tax plan is being legislated
under the budget reconciliation
process.
The 1954 amendment, named
after the late President Lyndon
Johnson when he was a senator
from Texas, provides a hard line
against charities endorsing political candidates, campaigning
or participating in political activities. Crossing it means the
Internal Revenue Service can
revoke the valuable tax-exempt
status. However, churches and
other groups can engage in
voter-registration drives, and
some have found ways to make
clear their preferred candidate
without an outright endorsement.
Nonpartisan tax analysts anticipate that the proposed
changes to the Johnson Amendment would actually cost the
U.S. government $2.1 billion in
lost tax revenue over five
years—the result of a billiondollar-per-year shift in political
money to nonprofits.
“It is a diversion of some of
the substantial growth in political contributions into a deductible form that is not deductible
today,” Joint Committee on
Taxation chief of staff Thomas
Barthold told the House Ways
and Means Committee last
month, explaining the fiscal impact of the Johnson Amendment proposal.
The JCT estimates that between $1.2 billion and $1.6 billion of giving a year would
move from traditional political
operations such as campaigns
and party committees into
newly nontaxable entities.
“This is a radical proposal to
change campaign finance laws,”
said Tim Delaney, president of
the National Council of Nonprofits, which has been lobbying against changes to the
Johnson Amendment.
“Charities and foundations
have worked for years, decades
and centuries to build the public’s trust, and we don’t want to
be dragged down by toxic partisanship,” Mr. Delaney said.
Ralph Reed, chairman of the
Faith & Freedom Coalition, said
the Johnson Amendment is
“draconian” and has had a chilling effect on speech.
Mr. Reed said conservative
evangelicals have been particularly wary of the existing rule
and argued that opponents
overstate the potential impact
of rolling it back.
—Richard Rubin
contributed to this article.
goals,” said Joe Ziemer, a vice
president of communications
at Betterment.
It would also limit taxpayers’ ability to maximize the
value of charitable donations
of appreciated shares by forcing them to give the first stock
they acquired. Currently, investors can avoid paying capitalgains taxes on donated shares
by getting a deduction for
their full-market value.
Financial advisers also rely
on managing investment taxes
to eke out as much as 1% to
2% annually in additional gains.
While the S&P 500 is up
16% for the year, those additional returns help wealth
managers justify the fee they
charge—usually about 1% of an
investor’s portfolio.
“We’re talking about saving
people thousand of dollars,”
said Paul Pagnato, founder of
PagnatoKarp, a $3.8 billion
wealth-management firm.
—Michael Wursthorn
loss of $54.22 a share, which
could be used to offset other
gains.
The provision would allow
investors in funds and dividend-reinvestment plans the
choice of selling at the average
cost of all the shares they
bought. But that average-cost
method doesn’t apply when
selling specific shares of a
company’s stock.
Some advisers, worried that
the new rule will pass, have
been urging clients to donate
their older shares.
“We have clients in their
80s and they have had stock
for a long time,” said Allan
Flader, a financial adviser with
RBC Wealth Management who
manages more than $700 million in assets. “There’s no reason for them to be paying
more in taxes.”
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.
Tuesday, December 12, 2017 | A7
NY
WORLD NEWS
Vladimir Putin, right, said Russia would retain the Hmeimim air base and a naval station at Tartus in Bashar al-Assad’s Syria.
as a major foreign-policy victory.
Speaking on the national
Rossiya 24 channel, top Russian war correspondent Evgeny Poddubnyy described the
Russian intervention as a successful campaign.
“Three years ago, no one
could have believed in a victory over ISIS,” he said, referring to Islamic State.
Despite
Monday’s
announcement of a Russian withdrawal, rebel commanders and
pro-regime media reported
that Russian warplanes remained heavily involved in
backing the ground advance
by the Syrian army and allied
Shiite militias toward northwest Idlib province.
Idlib, along with small
pockets of neighboring provinces, is one of the opposition’s last strongholds.
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After leaving Syria, Mr. Putin flew to Turkey for talks with President Recep Tayyip Erdogan.
ALEXEI DRUZHININ/PRESS POOL
MOSCOW—Russian President Vladimir Putin paid a
surprise visit to a military air
base in Syria, in an effort to
showcase his country’s rising
influence in the Middle East
months ahead of a presidential
election.
Mr. Putin landed Monday at
Hmeimim air base, a military
outpost in Syria’s Latakia
province that has been the
main launching point for Russian warplanes backing the
forces of Syrian President
Bashar al-Assad. In remarks to
Russian troops, Mr. Putin
claimed victory, saying Russian
forces and their allies had “defeated the most battle-ready
grouping of international terrorists” opposing Mr. Assad.
The Russian president said
he was ordering the bulk of
the Russian military contingent in Syria to begin withdrawing, but added that Moscow would maintain two
permanent bases in Syria—the
Hmeimim air base and a naval
station in Tartus.
“If the terrorists raise their
heads again, we will strike
them with blows, the likes of
which they have never seen,”
Mr. Putin said.
U.S. military officials responded to Mr. Putin’s comments with skepticism, noting
Russia has said before that it
would reduce its forces in
Syria.
“Russian comments about
the removal of their forces do
not often correspond with actual troop reductions, and
they don’t impact our—U.S.—
priorities in Syria,” Army Col.
Rob Manning, a Pentagon
spokesman, told reporters.
Monday’s visit comes as
Mr. Putin works to shape postconflict outcomes in Syria as
ly
.
BY NATHAN HODGE
Islamic State is ousted from
its final strongholds.
Last month, Mr. Putin
hosted heads of state from
Iran and Turkey to align positions before the start of Syria
peace talks in Geneva. In October, the Kremlin leader hosted
Saudi Arabia’s King Salman in
Moscow, a historic trip that
advertised Russia’s burgeoning
influence in the region.
The Russian government intervened directly on the side
of Mr. Assad in the fall of
2015, reversing the course of
the war and rescuing the Damascus government from near
defeat. Mr. Putin billed military intervention as a campaign against extremist groups
such as Islamic State, but U.S.
officials and international observers said his warplanes often targeted opposition rebel
groups, some of which have
been supported by the U.S.
and its allies.
Russian observers say Moscow’s robust support for Damascus has come at a time
when the Trump administration is recalibrating its policy
in the Middle East, sometimes
causing new friction with
longstanding allies such as
Saudi Arabia.
“Russia is making friends
across the region; we’ve won
their respect,” said Ivan Konovalov, a defense analyst.
The U.S. has approximately
2,000 troops in Syria, and
Pentagon officials have spoken
of an open-ended military
commitment there to prevent
the resurgence of Islamic State
or other terrorist groups. Russian officials have condemned
the presence of U.S. forces in
Syria after the defeat of Islamic State.
Mr. Putin’s visit to Syria
comes three months ahead of
Russia’s presidential elections
scheduled for mid-March, and
days ahead of a nationally
televised news conference. Mr.
Putin is widely expected to
win a fourth term, and Monday’s visit has been portrayed
on state-dominated airwaves
co Fo
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President visits air
base in Syria as he
promotes Russia’s
clout in Middle East
MIKHAIL KLIMENTYEV/SPUTNIK/KREMLIN, PRESS POOL
Putin Declares Victory Over Assad’s Foes
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.
A8 | Tuesday, December 12, 2017
WORLD NEWS
U.S. Tax Plan Draws Ire
The Trump administration’s
planned overhaul of U.S. corporate tax law came under attack Monday from finance
ministers of Europe’s five largBy Andrea Thomas in
Berlin and Todd Buell
in Frankfurt
Nations have been moving their corporate tax rates lower for years.
Headline national rates, excluding regional or state levies:
45%
40
35
U.S.
France
30
25
Japan
20
U.K.
Germany
Canada
Ireland
15
10
U.S. post-reform tax rate 20%
5
0
2000
’05
Source: OECD
’10
’15
THE WALL STREET JOURNAL.
vene the U.S.’s double-taxation
treaties and may risk having a
major distortive effect on international trade.” The U.S. is
the European Union’s single
most important trade and investment partner.
“We appreciate the views of
the finance ministers,” a Treasury spokeswoman said in response to the letter.
The Senate earlier this
month passed a tax overhaul
plan that would result in
about $1.4 trillion in tax cuts.
The proposal would deeply reduce the corporate rate, reshape international businesstax rules and temporarily
lower individual taxes for
some individuals.
Two provisions in particular have prompted pushback
from foreign executives, overseas trade bodies and politicians. One, contained in the
House version, proposes a 20%
excise tax on U.S.-based affiliates of foreign firms. Another
provision, in the Senate version, attempts to shore up
“base erosion”—or the decrease in a country’s tax base
when firms shift profits to jurisdictions with lower taxes.
Critics say a proposal to raise
taxes on many cross-border financial transactions would hit
foreign firms hardest.
All those provisions could
have an impact on foreign
manufacturers that sell their
wares in the U.S., such as Japanese auto makers or German
pharmaceutical companies.
The excise-tax and baseerosion-tax provisions “appear
to have the greatest impact on
certain sectors, particularly
those with heavy sales in the
U.S. but relying on integrated
supply chains,” said Albert
Liguori, a tax expert at New
York-based tax advisory firm
by the Federal Reserve, people
with knowledge of the matter
said. What they fear is a double
whammy sapping money out of
China by making the U.S. a moreattractive place to invest.
Under the plan, these people
said, the People’s Bank of China
stands ready to deploy a combination of tools—higher interest
rates, tighter capital controls and
more-frequent currency intervention—to keep money at home
and support the yuan.
An official involved in Beijing’s
deliberations called Washington’s
tax plan an obvious danger that
shouldn’t be ignored. “We’ll likely
have some tough battles in the
first quarter,” the official said.
Central to officials’ fear is
the yuan, which has just regained its footing after enormous government efforts to
prop it up. Should the yuan lose
steam again, the thinking goes,
it could further exacerbate capital outflows in a vicious cycle.
Under the tax plan now
going through the U.S. legislative process, America’s corporate levy could drop to about
20% from 35%. Over the next
few years, economists say,
that could spur manufacturers
to opt to set up plants in the
U.S. rather than China, where
total tax burdens on companies
are among the highest of major
economies.
co Fo
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est economies, voicing growing
anxiety among foreign executives and officials that the proposals would give American
firms unfair tax advantages.
In a letter sent to Treasury
Secretary Steven Mnuchin, the
finance ministers said the U.S.
overhaul contains protectionist measures that could violate
double-taxation treaties and
breach world trade rules. They
zeroed in on several technical
points that tax experts say
could have greater impact internationally than the proposed headline corporate tax
cut—from 35% currently to
20%—that has become the
centerpiece of the initiative.
That sharp proposed cut
has separately prompted business and political leaders in
many countries to assess their
own prospects for tax reductions to keep them competitive
with the lower American rates.
The ministers—from France,
Germany, Italy, Spain and the
U.K.—made no reference to the
headline rate, however.
The ministers’ letter said
some provisions of the Senate
and House bills “could contra-
Race to the Bottom
Beijing Budgets
For Any Overhauls
Officials study contingency
plan to combat consequences
BEIJING—As the U.S. prepares to take China to task
over trade imbalances, economic
mandarins in Beijing are focusing on a potentially more immediate threat from Washington—
Donald Trump’s tax overhaul.
Beijing officials are putting
in place a contingency plan to
combat consequences for China
of U.S. tax changes as well as
expected interest-rate increases
Alvarez & Marsal Taxand LLC.
Last week, the BDI Federation of German Industry, Germany’s biggest business lobby,
said some provisions of the
bills had “clearly a protectionist character.”
Foreign car makers, which
have big manufacturing facilities in the U.S., are among
those potentially most vulnerable to the changes. Daimler
AG, which this year announced
a $1-billion investment in its
Alabama manufacturing operations, said it supported “the
overall concept of tax reform”
but was waiting for the final
proposal from Congress before
passing judgment.
European plane maker Airbus SE, which assembles some
planes in Alabama, said it
would await the outcome of
congressional efforts to reconcile the House and Senate proposals before commenting on
the tax plan.
Even without the provisions
the finance ministers attacked
as protectionist, U.S. tax
changes could leave American
businesses with lower domestic-tax rates than their foreign
peers, pressuring other governments to reciprocate.
Businesses are particularly
concerned in Germany, where
prospects for corporate tax
cuts faded after the collapse of
coalition talks involving Chancellor Angela Merkel and the
pro-business Free Democratic
Party last month. Germany’s
average effective corporate tax
rate is roughly 30%, compared
with 19% in the U.K. and 12.5%
in Ireland.
—Richard Rubin in
Washington contributed to
this article.
ly
.
Tax proposals may
breach treaties,
Europe warns, but
could also spur cuts
Under the contingency plan
now being prepared, one course
of action China’s central bank
could take involves gradually
guiding up costs for bank-tobank borrowing, which has significantly added to financial
risks in recent years, while leaving unchanged benchmark interest rates so as not to make
it too difficult for companies to
borrow or pay back debt, both
of which could hurt growth.
The officials involved in the
discussion underlined that the
planned measures may not be
needed if the U.S. tax plan or interest-rate moves have limited
impact on Chinese outflows.
—Lingling Wei
Trump’s Trade Envoy Takes Aim at WTO
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President Donald Trump’s
chief trade adviser issued his
first detailed criticism of the
World Trade Organization on
Monday, blasting the global
commercial arbiter for “losing
its essential focus” and becoming “a litigation-centered
organization” that has failed
to pay sufficient attention to
enforcing existing rules.
While U.S. Trade Representative Robert Lighthizer didn’t
mention China by name, he
made Beijing a clear target in
his speech to fellow trade ministers of the 164-member body
at its biannual meeting this
week in Argentina.
Mr. Lighthizer said he felt
the Geneva-based organization
needed to focus its agenda on
Chinese economic practices
that critics often blame for
giving the country unfair advantages and for prompting its
companies to flood global
markets with cheap exports.
WTO rule-making committees,
Mr. Lighthizer said, should
tackle new challenges such as
“chronic overcapacity and the
influence of state-owned enterprises.”
Messrs. Lighthizer and
Trump have both long been
critics of the WTO, accusing it
of treating the U.S. unfairly in
many legal cases, for infringing on American sovereignty,
and for failing to address the
challenges from China’s hybrid
communist-capitalist mercantilist system.
But the two have so far said
very little about how, if at all,
the U.S. would translate that
disaffection into a new American policy toward the WTO,
which enjoyed stronger support from Mr. Trump’s predecessors.
Mr. Lighthizer’s brief remarks on Monday offered the
most detailed rundown to date
on how the Trump administration views the global trade
EITAN ABRAMOVICH/AGENCE FRANCE-PRESSE/GETTY IMAGES
no
n-
BY JACOB M. SCHLESINGER
Robert Lighthizer, left, said the World Trade Organization had become a ‘litigation-centered’ body.
overseer. He alluded in particular to the breakdown in the
WTO’s ability to negotiate new
rules—the last major round
took effect in 1995—and its
members’ growing focus on
the WTO’s courts.
“The WTO is losing its essential focus on negotiation,
and is becoming a litigationcentered organization,” he
said. “Too often members
seem to believe they can gain
concessions through lawsuits
they could never get at the negotiating table.”
Mr. Lighthizer also said the
U.S. wondered “whether the
current litigation structure
makes sense,” echoing Trump
administration complaints that
WTO courts too often issue
rulings it believes go beyond
the written rules—and against
Washington. To back up that
position, the Trump adminis-
tration is blocking the WTO’s
ability to fill vacancies on its
main trade court, aggravating
a case backlog.
Mr. Lighthizer was one of
the few delegates speaking at
Monday’s session who didn’t
endorse the official agenda for
negotiations this week—new
rules in areas like curbing
fishing subsidies or covering
digital commerce. “It’s impossible to negotiate new rules
when many of the current
ones are not being followed,”
he said.
The U.S. sets a higher priority on creating new rules requiring countries to do a better job of reporting trade
policies and subsidies, he said,
an area where Americans say
the Chinese have repeatedly
fallen short.
Trade ministers from other
member countries who spoke
on Monday didn’t criticize
Messrs. Trump or Lighthizer
directly, but many voiced
veiled criticism of the new U.S.
“America First” trade policy,
which questions the value of
the WTO and multilateral
trading system it governs.
“There is a need to preserve and to reinforce the
WTO,” the Swiss delegate said,
noting the current “challenging environment” for trade.
Hong Kong’s trade minister
said he was “troubled to see
that the multilateral trading
system is being cast in doubt
and under attack.”
“Trade protectionism is on
the rise,” said Zhong Shan,
China’s commerce minister.
“The multilateral trading system is a critical safeguard for
prosperity and development.”
—Taos Turner
contributed to this article.
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THE WALL STREET JOURNAL.
Tuesday, December 12, 2017 | A9
NY
* * * *
WORLD NEWS
Devil in the DNA:
Tasmanian Tiger’s
Demise Is Mapped
Saudis Greenlight Movie Theaters
By Nicolas Parasie
in Dubai, Margherita
Stancati in Riyadh,
Saudi Arabia, and
Erich Schwartzel
in Los Angeles
be to screen movies in Saudi
Arabia and whether unrelated
men and women will be able to
mix in the new cinemas. Segregation by gender is widely
practiced in the kingdom.
Currently, Saudis can watch
movies that aren’t censored on
satellite television or via the
internet. Censorship in the
theaters may turn away some
potential Saudi moviegoers.
“I love movies but I won’t
go here,” said Abdullah, a 28year-old man who declined to
give his last name. “A twohour movie here will only last
40 minutes because they will
cut everything—they will cut
kisses, and maybe even hugs.”
Hollywood already adjusts
to foreign markets, whether
through greenlighting movies
executives know will appeal to
overseas audiences or cutting
multiple versions after the fact.
In China and parts of the Middle East, government boards
approve imported movies prior
to release, and can request
specific cuts or edits.
By allowing theaters into
the country, Saudi Arabia is
offering a rare opportunity for
theater owners, who struggle
to find such untapped markets
in a world saturated with
screens.
Saudi Arabia has about 32
million people, which makes it
a slightly smaller market than
Poland, which in 2016 had a
box office of about $200 million, according to the Motion
Picture Association of America.
Opening cinemas could also
spur construction and hiring,
and contribute to economic
activity in malls, according to
industry executives. The introduction of a Saudi commercial
cinema industry is expected to
contribute $24 billion to the
country’s gross domestic product and will create 30,000 permanent jobs by 2030, according to the government.
The last known Tasmanian tiger died in captivity in 1936.
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OLIVIER HOSLET/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY
The move is the latest effort
to diversify the oil-dependent
economy and coincides with
Crown Prince Mohammed bin
Salman’s efforts to attract
more foreign investment. But
it also risks deepening tensions
between Saudi Arabia’s religious conservatives and those
who take a more liberal view
of Islam’s place in daily life.
Commercial cinemas will
start operating early next year
and by 2030 the kingdom expects to have 300 cinemas
with over 2000 screens, according to the Saudi ministry
of culture and information.
“Opening cinemas will act
as a catalyst for economic
growth and diversification,”
said Awwad Alawwad, who
heads the ministry.
The lifting of the ban, which
was widely expected, is part of
an effort to encourage Saudis
to spend on entertainment at
home rather than traveling to
neighboring countries.
“It is a beautiful day in
Saudi Arabia!” tweeted Haifaa
Al Mansour, a leading female
Saudi filmmaker.
At the same time, movies
shown in Saudi cinemas will be
subject to censorship to ensure
content is “in line with values
and principles in place and do
not contradict with Shariah
laws and moral values in the
kingdom,” the ministry said.
The ministry didn’t immediately respond to requests to
clarify what the guidelines will
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Saudi Arabia lifted a decades-old ban on movie theaters on Monday, paving the
way for Hollywood-style entertainment in the conservative
kingdom.
no
Israeli Premier Benjamin Netanyahu with EU foreign-policy chief Federica Mogherini in Brussels Monday
European Officials Warn U.S.
Against Solo Mideast Efforts
BY LAURENCE NORMAN
BRUSSELS—European
Union officials warned the
Trump administration not to
go it alone in its Middle East
peace efforts as the bloc’s foreign ministers said they
wouldn’t follow the U.S. decision to recognize Jerusalem as
the Israeli capital.
EU foreign ministers on
Monday morning met with Israeli Prime Minister Benjamin
Netanyahu, who was making
his first official trip to the
bloc’s capital, to discuss the
situation in the Middle East.
The U.S. has been working
on a peace plan, which officials say it intends to present
in 2018.
Jared Kushner, the president’s son-in-law and senior
adviser, and Jason Greenblatt,
the president’s chief negotiator, have spent months meeting with the Israelis, Palestinians and other Arab officials
to get input for the plan they
are crafting.
EU foreign-policy chief Federica Mogherini on Monday afternoon said the U.S. is an indispensable player in any
peace process but warned that
Washington must secure international backing for its eventual proposals.
“There can be no illusion
from the United States side that
a United States initiative alone
would be successful,” she said.
The EU has a role in the
peace process as one of the
members of the Quartet group,
which also includes the U.S.,
the United Nations and Russia,
tasked with advancing the
peace process.
Any peace proposal would
need buy-in from regional
Foreign ministers
said they wouldn’t
recognize Jerusalem
as Israel’s capital.
countries willing to eventually
recognize Israel in exchange
for peace. It would also need
strong international backing
to help enforce and implement
any agreement.
Ms. Mogherini, who spoke
last week about U.S. peace
plans with Mr. Kushner, said
Europe could help craft “an international and regional
framework” for credible negotiations to resume.
While President Donald
Trump has said he is open-
minded on whether a two-state
solution is the best outcome to
peace talks, other international
actors are strongly committed
to a solution that delivers Israeli and Palestinian nations
living side-by-side with Jerusalem as a shared capital.
With Mr. Trump in office
for almost a year, there have
been signs of impatience with
Washington to advance IsraeliPalestinian talks, which have
been on hold since 2014.
French Foreign Minister
Jean-Yves Le Drian warned on
Monday that if Washington
doesn’t come forward with
proposals, the EU will have to
work up its own initiative.
French President Emmanuel
Macron has so far shelved an
initiative led by his predecessor that sought to fix parameters for a solution to the conflict and set a time limit on
talks, an approach Israel
strongly opposed.
During a trip to Cairo on
Monday, Russian President
Vladimir Putin also called for
talks to resume soon.
While Ms. Mogherini said
there were no plans for an EU
initiative, she warned that Mr.
Trump’s decision to recognize
Jerusalem as the Israeli capital could imperil the U.S.’s
ability to play honest broker.
11.29ct F/VS1 radiant cut diamond 3 stone ring
125 Greenwich Avenue, Greenwich
(203) 622-6205
www.shrevecrumpandlow.com
TASMANIAN MUSEUM AND ART GALLERY
Saudi women attended a film festival in Riyadh in October. Lifting a ban on movie theaters is part of efforts to diversify the economy.
CANBERRA, Australia—The
Tasmanian tiger is the subject
of one of the most enduring
wildlife legends: an extinct
wolflike marsupial that some
Australians believe still exists
in the dense forests of its last
island stronghold.
A new map of the tiger’s genetic code has provided one of
the most complete blueprints
of an extinct animal—adding
to those of mammoths and
passenger pigeons, along with
Neanderthal man. It found the
striped predator was anything
but fearsome—it was in poor
genetic health before it was
hunted to extinction.
The tiger, or thylacine, was
the world’s largest marsupial
carnivore. It was named after a
cat, and though it looked more
like wild dogs, foxes or wolves,
it was more closely related to
kangaroos and Tasmanian devils. The marsupial’s fearsome
appearance and ability to splay
open its jaws at a 120-degree
angle frightened European settlers, and bounties were put on
the animals’ heads for hunters.
The last known animal died in
captivity in 1936.
Andrew Pask, a biosciences
associate professor at the University of Melbourne, led an
Australian-American
team
studying the animal’s genome.
A genome is the complete DNA
map of an organism, containing
the genetic information to produce it. Mr. Pask said mapping
the tiger’s genetic secrets had
cast new light on the role genetics can play in the extinction
of a species, and how environmental factors such as climate
change might affect evolution.
Previous thinking, Mr. Pask
said, blamed the decline of thylacine tigers on genetic isolation
after rising seas cut their Tasmanian home off from the Australian mainland about 10,000
years ago, with inbreeding and
hunting then killing off the
small population. But the genome map showed the animals
were in poor genetic health long
before their isolation.
“When we look back in the
genetic history, we see that
[the Tasmanian tiger] had this
big decline long before that,”
Mr. Pask said. That suggested
factors such as climate change
had also affected the tiger
gene pool, he said.
The study, published in the
journal “Nature Ecology and
Evolution,” also explored the
mystery of how different species can evolve to be uncannily
alike despite having almost no
genetic link.
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FAYEZ NURELDINE/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY ROB TAYLOR
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THE WALL STREET JOURNAL.
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A10 | Tuesday, December 12, 2017
JESSICA DONATI FOREIGN CORRESPONDENT
The Face of Real News
In 2013, Jessica Donati arrived in Kabul at the tail end of the U.S.’s
transfer of security to the Afghanistan government. Despite the dangers,
she traveled with and without military escort to report on the country’s
dramatic upsurge in violence. Over the next four years, Ms. Donati
provided WSJ readers the full scope of the unending corruption,
bombings and kidnappings that has encapsulated America’s longest war.
Real journalists and real news from America’s most trusted newspaper.
WATCH HER STORY AT WSJ.COM/JESSICA
#TheFaceOfRealNews
Source: Pew Research Center, Political Polarization & Media Habits, 2014
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THE WALL STREET JOURNAL.
Tuesday, December 12, 2017 | A11
WORLD NEWS
Academic who favors
tough line with North
Korea is U.S. choice for
ambassador to South
BY JAKE MAXWELL WATTS
BY JONATHAN CHENG
Philippine President Rodrigo Duterte asked legislators
to extend martial law in the
southern Philippines for a
year, sticking with a policy he
said was necessary to fight Islamic extremism despite vehement opposition from rights
groups.
The Philippine president,
known for his strongman style
of governance and defiance of
establishment politics, said in
a letter to Congress that martial law had helped the government combat a long list of
violent acts. He said the violence had been perpetrated in
the past year by several armed
groups, including some inspired by Islamic State, and
that an extension was necessary to quell the rebellion of
communist
and
Islamist
groups in the restive south.
Mr. Duterte first declared
martial law on the southern
island of Mindanao in May after the city of Marawi was attacked by hundreds of Islamic
State-linked fighters who authorities said sought to capture it and declare a caliphate.
The military struggled to dislodge the heavily armed fighters, only declaring the city liberated in October after a fivemonth siege.
The extension of martial
law to the end of 2018 is necessary “not only for the sake
of security and public order,
but more importantly to enable the government and the
people of Mindanao to pursue
the bigger task of rehabilitation” and development, Mr.
Duterte said in the letter,
dated Dec. 8 but made available to the media on Monday.
Martial law allows the military to search and arrest suspects without the usual need
for a warrant. The Philippine
Congress, which Mr. Duterte
and his allies dominate, has
previously been sympathetic
to Mr. Duterte’s call for martial law.
Human-rights groups have
expressed concern that the imposition of martial law for
such a long period, especially
after the end of hostilities in
Marawi, is unnecessary.
SEOUL—The Trump administration will nominate as ambassador to Seoul a prominent
Korea expert who favors a
tough line on Pyongyang, filling a yearlong vacancy at the
front lines of President Donald
Trump’s biggest foreign-policy
challenge.
The appointment of Victor
Cha, a Georgetown University
professor who served in the
George W. Bush White House,
would bring a well-established
Korea hand with a hawkish
reputation to Seoul at a time
of concern in South Korea
about Mr. Trump’s assertive
approach to dealing with
Pyongyang’s weapons program.
The U.S. has formally notified South Korea that it intends to nominate Mr. Cha,
and, depending on the diplomatic and congressional approval process, he could be in
place in time for the Winter
Olympics in South Korea in
February, according to people
familiar with the matter. Mr.
Cha didn’t reply to a request
to comment.
If approved, Mr. Cha’s arrival would fill a yearlong hole
at the head of the U.S. Embassy in South Korea, one of
the U.S.’s closest allies in Asia
and a bulwark against North
Korea and its advancing nuclear and missile programs.
One of Mr. Cha’s most immediate challenges would be
to ease strains in Washington’s alliance with Seoul,
which has been tested by Mr.
Trump’s suggestion that the
U.S. could rip up a bilateral
free-trade agreement and demand more compensation for
the U.S. military presence in
the South, which hosts
roughly 28,500 U.S. troops.
Ambassador Mark Lippert,
a highly regarded Obama appointee, stepped down on inauguration day in January, in
line with an edict from the incoming Trump administration.
Mr. Lippert’s deputy, Marc
Knapper, a career diplomat
and fluent Korean speaker on
his third posting to Seoul, has
served as acting ambassador
in the meantime.
YONHAP NEWS/NEWSCOM/ZUMA PRESS
Expert in Line as Envoy to Seoul
Victor Cha has pressed for continued sanctions on Pyongyang.
Mr. Knapper has made a
point of reaching out to a diplomatic community in Seoul
that is jittery about the Trump
administration’s approach to
North Korea, rounding up ambassadors for one-on-one debriefings in the days after the
U.S. president’s visit to Seoul
last month.
Even so, experts say, there
is no substitute for the U.S.
posting an ambassador in
Seoul at a time of global concern about North Korea.
“Having an ambassador
sends a very positive signal to
Korea that America is committed to this relationship and focused on this issue,” said Ben
Forney, a research associate at
the Asan Institute for Policy
Studies in Seoul.
Mr. Forney said Mr. Cha’s
prominent profile in Seoul and
Washington, and his years of
relationships with South Korean policy makers would send
a critical message of reassurance.
“He has a reputation for being hawkish, but he’s also a
pragmatist: He knows what
you can get away with and
what you can’t,” Mr. Forney
said.
In many ways, Mr. Cha
would be a good fit for Mr.
Trump’s Korea policy. Mr. Cha
has long called for tougher
sanctions on North Korea,
which dovetails closely with
the White House’s maximumpressure campaign.
Mr. Cha said in congressional testimony in February that
“North Korea, under the current regime, will not give up
its nuclear weapon” and argued that the U.S. was best
served continuing to press
sanctions against North Korea,
even in the face of public
skepticism over their effectiveness.
“We need to keep the pressure on and expand the
scope,” Mr. Cha told the House
Foreign Affairs Committee.
If confirmed, Mr. Cha would
become the second U.S. ambassador to Seoul of Korean
descent. Sung Kim was the
U.S.’s top envoy to South Korea from 2011 to 2014.
—Andrew Jeong in Seoul
and Felicia Schwartz
in Washington
contributed to this article.
WORLD WATCH
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Philippine
Martial
Law to Get
A Hearing
UNITED KINGDOM
YEMEN
U.N. Official Warns
Of Impending Famine
PEDRO PARDO/AGENCE FRANCE-PRESSE/GETTY IMAGES
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May Gives Update
About Brexit Talks
CELEBRATED PROCESSION: Pilgrims made their way to the Basilica of Guadalupe in Mexico City on
Monday, the day before the festival commemorating the apparition of the Virgin of Guadalupe.
Prime Minister Theresa May
said there is a new sense of optimism about negotiations over
Britain’s departure from the European Union, insisting that a
preliminary deal has given the
talks fresh impetus.
She told the House of Commons that Britain will be able to
leave the European Union “in a
smooth and orderly way.”
Mrs. May updated lawmakers
on the agreement reached Friday
with the EU that covers issues including the rights of citizens affected by Brexit, Britain’s financial
obligations to the EU and how to
keep open the border between
Northern Ireland, which is part of
the U.K., and the Republic of Ireland, an EU member.
Leaders of the other 27 EU
members are expected to ratify
the agreement this week, allowing talks to move on to trade
and security cooperation.
—Associated Press
Warring sides must let more
aid get through to 8.4 million
people who are “a step away
from famine” in Yemen, a senior
United Nations official said.
A Saudi-led military coalition
fighting the Iran-aligned Houthi
movement in Yemen’s civil war
blockaded ports in November after a missile was fired toward Riyadh.
Jamie McGoldrick, humanitarian coordinator for Yemen, said
the blockade has been eased,
but the situation remained dire.
“The lives of millions of people, including 8.4 million Yemenis
who are a step away from famine, hinge on our ability to continue our operations and to provide health, safe water, food,
shelter and nutrition support,” he
said. The U.N. says food shortages caused by the warring parties blocking supplies have created the humanitarian crisis.
—Reuters
FROM PAGE ONE
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Continued from Page One
ning below 2% for most of this
year. Moving too quickly could
stall growth.
Persistently weak inflation
has stumped Fed Chairwoman
Janet Yellen and her colleagues. Some Fed officials
have argued for holding rates
low a bit longer to give inflation a nudge. Most, though,
want to raise them.
Economists attribute feeble
inflation across developed
economies to several causes,
including aging populations,
slow productivity growth and
globalization, which have
reined in the ability of companies to raise prices and wages.
With consumer spending accounting for more than twothirds of the U.S. economy, the
explosion in e-commerce has
been added the list.
Stacy Peterson, 34 years
old, of North Little Rock, Ark.
said she started her holiday
shopping in October, researching and comparing prices online. On Thanksgiving Day, she
sprang for a trampoline she
had been eyeing. It was
marked down online at Academy Sports + Outdoors to
$129.99 from $179.99.
The mother of two plans to
check the holiday sales at her
local stores, she said, but
mostly will look online and
buy from “whoever has it
cheapest.”
In a nod to the growing
practice, Ms. Yellen said in
September that increased
competition created by online
retailers “may have reduced
price margins and restrained
the ability of firms to raise
prices in response to rising
demand.”
Ms. Yellen said in October
that online shopping “could be
helping to hold down inflation
in a persistent way in many
countries.” The Bank of Japan
n-
RATES
in has attributed part of the
price declines at supermarkets
to online shopping.
Kayla Weaver Blake of Lufkin, Texas, frequently researches prices online. On a
trip to buy diapers at a Toys
“R” Us Inc. store, she pulled
out her phone and noticed a
carton of 128 Pampers Swaddlers was $34 on Amazon.com
Inc., or roughly 20% cheaper
than in the store. The mother
of three showed the screenshot to the cashier. Paired
with a $10-off coupon, Toys R
Us sold the diapers to her for
a net price of $24.
“I do that with everything,”
said Ms. Blake, 29, who price
checks such items as laundry
detergent and toilet paper. “If
it’s full price, I’m not going to
buy it.”
The same applies for holiday shopping. Ms. Blake saw a
PJ Masks toy set for $89 in
Wal-Mart Stores Inc. It was
$59 on Amazon. Every retailer, she said, is “competing
with every other business out
there.”
The growth of e-commerce
is well understood, tracking
the smartphone’s ubiquity and
a global supply chain that delivers consumer goods quickly
and cheaply. Its impact on inflation—the so-called Amazon
effect—is still being explored
by economists.
Research by Goldman Sachs
found that online price competition may be subtracting as
much as a tenth of a percentage point from core inflation,
which strips out volatile energy and food prices, and
quarter of a percentage point
from core-goods inflation, as
measured by the personal-consumption expenditures index.
It may not sound like much
but with annual core inflation
at just 1.4% in October, it is
significant.
Alberto Cavallo, an economist at the Massachusetts Institute of Technology’s Sloan
School of Management, said
the expanding ability of consumers to comparison shop
has constrained retailers’ ability to charge different prices
online and in stores, according
to data compiled in MIT’s Billion Prices Project.
Retail’s share of e-commerce is growing, another
consideration for Fed policy
makers. Online shopping accounted for 9.1% of U.S. retail
spending in the third quarter,
according to the Census Bureau, up from 3.6% in the same
quarter of 2008. It comprises
most retail growth: More than
half the sales of books, music,
videos and DVDs are done online, according to retail data
analysis firm Boomerang
Commerce Inc. Sales of sporting goods and consumer electronics are getting close to
Consumer knowledge
is keeping a lid on
prices, holding down
U.S. inflation rates
that level.
Consumer prices for many
of those goods fell in the year
to October: Books were down
2.7%; sporting goods fell 1.9%;
televisions dropped 10.3%;
toys declined 8%, the Labor
Department said.
The consumer-price index
for commodities, excluding
food and energy, dropped 1%
over that time. It has shown
deflation, compared with a
year earlier, nearly every
month since early 2013,
though that partly reflects a
drop in import prices from the
strengthening dollar.
By contrast, the annual rate
of inflation for services hasn’t
dipped below 2% in six years,
largely driven by the rising
costs of rent, health care and
education.
With more sales conducted
online, retail pricing now mirrors gas stations, where prices
are clearly marked and competitors quickly match their rivals, said Tracy Issel, Microsoft Corp.’s general manager
of world-wide retail and consumer goods. “It’s a race to
the bottom.”
The competition helps drive
innovation and productivity,
according to economists, while
giving consumers more for
their money. And some believe
it will have a growing influence over central bank policy.
“If the Amazon effect is big,
or more broadly if structural
forces pushing down on inflation are big, then at the margin that means an easier monetary policy” going forward,
said Goldman Sachs economist
Jan Hatzius.
Central bankers should rethink their inflation targets,
given the continued downward
pressure on inflation from
globalization and technological change, said Claudio Borio,
chief economist at the Bank
for International Settlements,
a Switzerland-based consortium of central banks.
Amazon captures more than
40 cents of every dollar spent
online, according to a panel of
5 million U.S. shoppers tracked
by Slice Intelligence. The internet giant chooses which
categories it leads and
matches on pricing by electronically checking thousands
of websites a day, according to
former employees.
Some economists are skeptical of the Amazon effect. European Central Bank
President Mario Draghi said
his economists “do not see
much evidence to suggest that
e-commerce is depressing inflation in the euro area today—at least to extent that we
can measure it.”
Accurately measuring the
impact of the Amazon effect is
indeed a problem. Few statistical agencies collect extensive
online price data.
Bargain Basement
Aggregate prices for the consumer shopping basket that includes
clothes, shoes, household appliances, sporting goods and many forms
of electronic pastimes have been falling, thanks, in part, to an efficient
global supply chain, online retailers and price-conscious shoppers.
Consumer price index, excluding food and energy, change from a
year earlier
3%
All items
2
1
Goods
0
–1
2013
’14
from a year earlier
Recreational products*
3.0%
’16
’17
Personal computers*
Toys*
8.0%
’15
from a year earlier
Source: Federal Reserve Bank of St. Louis,
CPI data through October 2017
3.3%
from a year earlier
Books
2.7%
from a year earlier
THE WALL STREET JOURNAL.
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.
A12 | Tuesday, December 12, 2017
Mr. Kharitonov, 54 years
old, and co-founder Jon McAuliffe, 43, have Ph.D.s. in computer science and statistics, respectively. Both went
into finance and became researchers at D.E. Shaw Group,
one of the oldest and
most successful “quant” hedge
funds. Mr. Kharitonov at one
point reported to a young Jeff
Bezos, before his boss left to
found Amazon.com.
For several years, Messrs.
A New Breed
Some hedge funds have moved to use machine
learning in their trading, with varying results.
Traditional Quant
Machine Learning Quant
Researcher has hypothesis about
markets (patterns, connections…).
Quant aims to predict market
moves, but without hypothesis.
Runs test on data to confirm.
Writes code for a machine
learning system.
If yes, writes an algorithm
to capture it.
Trains the system
using historical data.
Tests it against historical data.
n-
Tests system on live data to
see if it makes good predictions
or has faults.
no
If performs well,
puts into live trading.
Puts into live trading
if it works well.
THE WALL STREET JOURNAL.
SHIPS
Continued from Page One
Eventually, local media published a translation, which The
Wall Street Journal corroborated: “Hydrometrical Service
of the USSR.”
Several federal agencies
called about the enigmatic
buoy, says Mr. Frosbutter, but
no one from Russia called. The
going theory, he says, is that it
was blown 350 miles from
Cuba, a Soviet stronghold during the Cold War.
The park set the buoy under a tarp without solving its
secret, Mr. Frosbutter says. “I
have no idea what we’re going
to do with it.”
Monroe County, covering
the 113 miles of the Florida
Keys, had thousands of
wrecked vessels after Irma,
says county sheriff spokeswoman Becky Herrin. U.S.
Coast Guard satellite imagery
taken after Irma showed more
than 2,570 distressed vessels
throughout the state. The
Coast Guard says 2,127 have
been recovered or removed.
Among the guard’s strangest finds was on a boat named
Cuki. On Sept. 19, a jogger
happened upon the 45-foot
sailboat resting on its port
side on Melbourne Beach
southeast of Orlando.
Some locals reported to po-
Jon McAuliffe, a statistics Ph.D., co-founded Voleon, which uses machine learning to trade stocks.
sell a stock.
“A lot of people simply
weren’t interested,” said Mr.
Kharitonov. “But we found a
few who understood the potential of machine learning.”
Live trading began in fall
2008, the depths of the financial crisis. For the following
two full years, the firm lost
money, despite the U.S. stock
market’s gradual recovery
from its low in March 2009.
The Voleon founders plowed
ahead, believing it would take
time to hone their system
enough to earn profits.
Voleon vs. the Market
Results at Voleon, which invests using machine learning, often vary
widely from other hedge funds and the overall stock market.
Voleon*
Hedge funds†
S&P 500‡
50%
40
30
20
10
lice they thought they saw human figures aboard, says Matt
Culver, the Brevard County
Boating & Waterways coordinator responsible for postIrma boat removal. “People
thought there were bodies,
like something weird happened.”
The Coast Guard boarded
Cuki to check for survivors. In
the cockpit were mannequins.
Photographer Ian Gronosky,
who lives nearby in South
Melbourne Beach, says he was
one of the first to arrive at
Cuki and saw mannequin parts
everywhere. A torso and head
lay under some life jackets,
fishing nets and lines. A leg
was nearby with a second near
the rail.
“It was definitely creepy,”
he says.
The boat’s hail port indicated on the stern was New
Rochelle, N.Y., 1,109 nautical
miles away—sparking speculation that it had floated that
far.
Authorities from multiple
agencies tracked down the
1974 fiberglass boat to a Floridian who bought it from a
New York owner and kept it in
Key West, according to vesselregistration records. The
Coast Guard speculates it
broke free and washed ashore
340 miles to the north.
The owner can’t collect his
boat, Monroe County police
say, because he is an inmate at
0
Too much noise
The basic problem they
faced was that markets are so
chaotic. Machine-learning systems have been best applied
so far to situations where patterns are more of a repeating
nature, and thus easier to discern, such as in playing the
ancient game of Go or even
guiding a driverless car. The
financial markets are “noisier”—continually being affected by new events, the relationships among which are
frequently shifting.
The protean nature of the
markets also means yesterday’s relationships can vanish
as investors figure them out
and move to take advantage
of them. This isn’t a problem
faced by machine learning in
other fields, such as converting human speech to text.
Even though the success of
machine learning in other
fields was partly what persuaded them to try it in investing, by late 2011 the Voleon founders had thrown out
most of the techniques from
other applications. Replacing
them was the founders’ own,
custom-designed system for
the unruly markets.
Books with titles such as
“Elements of Large-Sample
Theory” and “BDA3” lined the
bookshelves in the tidy office
of Mr. McAuliffe on a recent
visit. Mr. Kharitonov’s office
sported a circuit board he had
taken apart and a jumble of
Monroe County Detention Facility on Stock Island outside
Key West.
One lost treasure that reappeared post-Irma was the
much-loved sign that has
greeted visitors on U.S. 1:
“Welcome to Key West, Paradise USA.”
The sign went missing after
the storm. It turned out to be
nearly 300 miles away in Fort
Myers, Fla. A couple had found
the sign blown down and took
it.
yond U.S. and European stocks
and has expanded into another
building near the University of
California, Berkeley, campus.
Some investment firms that
have tried machine learning
use it only for limited tasks,
among them AQR Capital Management LLC, which is experimenting with the technique to
find the optimal time to roll
over futures contracts. Voleon
not only is fully focused on
machine
learning—trading
more than $1 billion worth of
stocks a day using the technique—but stands out for its
complete lack of interest in
the reason its system buys one
stock and sells another.
The more predictive a machine-learning system is, the
more difficult it is for people
to comprehend what it is up
to, according to Mr. Kharitonov. “You can have maximum explainability or maximum predictive power,” he
said, paraphrasing the late
Berkeley statistician Leo Breiman.
At the root of this, mathematicians say, is that the human mind is set up to understand scenarios with about
three dimensions, while dozens or hundreds are within the
grasp
of
machine-learning systems. Their power
comes in discovering connections, often nonlinear, among
those dimensions.
This “doesn’t mean we
don’t think about what’s going
on,” Mr. McAuliffe said. Volean
researchers sometimes design what they call “perturbations” to study the importance
of various inputs into the prediction system.
ly
.
D.E. Shaw veterans
–10
2009
2010
2011
2012
2013
2014
2015
2016
2017
*Returns for its flagship fund through October †Average of hedge funds ‡With dividends
reinvested
Sources: Voleon investors; HFR Inc; WSJ Market Data Group THE WALL STREET JOURNAL.
boxes overflowing with papers.
One challenge the two faced
was the need to run 15-year
simulations of the stock market using every “tick” of the
price of every share. This involved terabytes of data. Voleon needed to run the simulations in hours, but they were
taking days and weeks.
At the time, the whole company was around 10 or 12 people. The team tried buying
more computing power and
using special chips built for
computer gaming known as
graphics processing units, or
GPUs. But it still took too long.
Mr. McAuliffe spent months
alone in his office working the
problem through in a painstaking process, focusing on intricate details. Finally he
cracked it, and Voleon was
able to launch a second-generation platform in July 2012.
“The brute-force approach
didn’t work,” Mr. Kharitonov
said. “The standard techniques
didn’t work.”
Their new trading system
brought in much better profits, and more investor interest.
After modest 2011 returns in
its
flagship
fund,
Voleon notched gains of 34.9% in
2012 and 46.3% in 2013, acA month later, the remorseful couple returned it, says Albert Gonzalez, president of the
Rotary Club of Key West,
which had donated the $8,000
sign. No charges were pressed,
Key West police say.
On Biscayne Bay, four sailboats ranging from a 35-foot
cruiser to a 48-foot, 40-ton pirate-style ship wound up on
David Ivler’s manicured lawn
in Miami’s Coconut Grove
neighborhood.
There they remain, leaking
cording to an investor.
Still, following two more up
years, Voleon suffered a loss
of more than 9% in 2016,
prompting concern among
some of its investors.
“Nothing focuses your mind
like a drawdown,” Mr. Kharitonov said, referring to the
loss. “We learned a lot from
last year.”
For trading, machine
learning’s advances
in other fields have
proved of little use.
This year has been better.
The firm, which has about $1.8
billion under management,
was up about 4.5% through
October in its flagship fund,
one investor said. Its annualized return since inception is
about 10.5%.
The firm’s uneven results,
complicated strategy—and Mr.
Kharitonov’s habit of occasionally pausing client meetings to
hold phone conversations in
Russian—haven’t stopped Voleon from growing. It is broadening its investing target be-
sewage, gas and rotten food,
says Mr. Ivler, smelling “unbelievably putrid.”
Salvage operators are seeking up to $75,000, he says, to
remove them. “It’s been an absolute nightmare.”
Questions still surround the
vessel Mr. Lathrop found while
on his bike. It had no motor,
mast or sails. It was 15 feet
long and weighed almost 700
pounds, he says. It had a
pointed bow with a squared
stern, and its nails were of
RANDY LATHROP
Continued from Page One
this year.
Yet instances of parlaying
machine learning into investing success over a sustained
period are rare. Much of the
reason can been seen in the
yearslong struggle of Voleon,
one of the first investment
firms to commit itself fully to
the kind of machine learning
that is producing many advances in other fields.
One early lesson: Those
other advances might not apply to trading, a messier environment where patterns are
often muffled. “The idea that
we could just take the machine-learning
techniques
in speech recognition and
computer vision to generate
better forecasts just didn’t
work,” said Mr. Kharitonov, a
computer scientist who immigrated from Russia with his
family when he was 18. “That
was our initial idea.”
co Fo
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ROBOTS
Kharitonov and McAuliffe believed the tools of machine
learning, which both studied,
were too crude for investing.
The methodology was sound,
but computers weren’t fast
enough and there weren’t
enough data sets to comb.
In contrast to the more
common case where a scientist has a hypothesis and
writes an algorithm for a computer to carry out, in machine
learning a person seeds the
computer with vast quantities
of data and asks it to figure
out patterns all by itself.
The computer, in effect,
writes its own algorithm, and
uses it to make predictions.
How it came up with these, it
doesn’t say.
By 2007, new data sets and
more-powerful computers had
persuaded Mr. Kharitonov,
who is known as Misha, and
Mr. McAuliffe to start their
own firm devoted to investing
via machine learning. They
formed Voleon, picking the
name because the domain for
the website was available
to register.
Raising money, they faced
deeply skeptical institutional
investors. Big quant firms
can explain fairly well what
their algorithms are doing,
having built them. In machine
learning, only the computer
knows why it did what it did.
The inherent mystery of the
approach, where computers
detect patterns too subtle for
humans to easily comprehend,
gave the Voleon principals little hope of being able to explain to potential investors
why their firm would buy or
JASON HENRY FOR THE WALL STREET JOURNAL
IN DEPTH
Randy Lathrop with the enigmatic vessel he found after Hurricane Irma. It may be from the 1600s.
Don’t Overfit
This testing also helps them
figure out whether, in certain
cases, it might be too tuned to
historical data to be useful for
forecasts. In statistics, this is
known as the problem of
“overfitting.”
Voleon’s computers look for
relationships in not just financial information but also nonfinancial data sets. Broadly,
these could include anything
from analyses of satellite images and shipping manifests to
credit-card receipts and social-media sentiment about
particular companies. Successfully analyzing such data is a
goal of quants and non-quants
alike as they look for a headsup about changes in the health
of an industry or the supply of
a commodity.
The Voleon principals won’t
reveal what data they feed
into their system, to say nothing of how they have trained it
to assess the data. Like other
quant firms, Voleon guards its
techniques and strategies.
Frosted glass on its quarters
provides privacy. No sign on
the property identifies the
firm.
Investors uncomfortable
with the mystery of it all have
“self-selected” out of the firm,
Mr. Kharitonov said. While he
understands their discomfort,
he believes computers make
fewer mistakes than people.
“The application of machine
learning science to financial
prediction is still in its early
stage,” he said. “We are just
scratching the surface.”
square iron.
Mr. Lathrop suspected it
was a canoe hollowed out of a
cypress trunk using fire and
tools. His research suggested
the style dated to the 1700s.
“Look what Irma kicked
up,” he wrote on Facebook.
About 100,000 people shared
the photos, some offering theories: It was a movie prop; it
used to hang above the bar in
a Trader Vics.
Florida’s Division of Historical Resources retrieved the
vessel and placed it in a water
bath for preservation. The
agency said it might have been
long buried and dislodged
from the ocean bottom during
Hurricane Irma.
The DHR’s initial public verdict was that the canoe “is at
maximum several hundred
years old and minimum probably several decades old.”
Then carbon-dating tests
came back, putting its construction in the 1600s. It was
made from cedar, which is
rare, says the DHR. It plans
dendrochronology—testing the
wood’s tree rings to determine
age—for a more definitive
date.
“This canoe is unique in
that the radiocarbon dating indicates the wood is very old,
but it has features that indicate it is more modern,” says
DHR spokeswoman Sarah Revell.
“So it is a bit of a mystery.”
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.
Tuesday, December 12, 2017 | A12A
NY
* * * * *
GREATER NEW YORK
PORT AUTHORITY TERRORIST ATTACK
Security Beefed Up at Key Locales Commuters
Carry On
After Bomb
Incident
Once again, New Yorkers
are confronting the reality of
terrorism at home.
City residents expressed fear,
bewilderment and a sense of
resignation to the inevitable as
they spoke of Monday’s incident
near the Port Authority Bus
Terminal where Akayed Ullah
allegedly detonated an explosive device during the morning
rush hour. Three people suffered minor injuries, police said.
“I’m trying not to think
about what happened,” said
Chelsea LaSalle, a 28-year-old
graphic designer who was in
the Port Authority when the
low-tech bomb went off.
She described a scene of
panic and confusion. “People
were screaming, ‘Get out, get
out,’ and some were yelling
‘Bomb!’ When you hear those
words you feel like this is not
OK and you should do what
they say,” said Ms. LaSalle,
who was on her way to work.
Alarm spread through the
city, particularly because a major transit hub was targeted. “I
could’ve been in that tunnel,”
said Scott Farbish, a 28-year-old
attorney who lives in Chelsea.
Some city residents said
they might change their transit
routines in light of the incident. Gina Giacomantonio, a
publicist who lives in Midtown,
says she is going to avoid the
subway—at least for the next
few weeks. “I feel safer walking on the street than being
underground,” she said.
Hanan Kolko, a 57-year-old
labor lawyer who lives in
Montclair, N.J., said his NJ
Transit bus from Clifton to the
Port
Authority
crawled
through the Lincoln Tunnel. He
said it took him 2 hours and 20
minutes to get to work, more
than double the usual commute.
When his bus arrived at
about 9:40 a.m., he saw scores
of law-enforcement officers in
the terminal. “It was eerie because the Port Authority was
empty except for people being
escorted out,” he said.
“It was a moment when I was
proud to be a New Yorker,” he
said, noting that police captured
the alleged attacker quickly.
“We were going to carry on our
day, regardless of whether some
guy tried to plant a bomb.”
Not that commutes were
necessarily easy. The incident
forced the shutdown of the
Port Authority Bus Terminal
for hours, creating headaches
for travelers.
Some tourists took note of
how quickly New Yorkers resumed their routines. Fernando DeBrum, a visitor from
Providence, R.I., was standing
on the street near the Port Authority a couple of hours after
the incident.
“You look at New Yorkers,
they’re just going about their
daily routines,” said Mr. DeBrum, who was visiting the
city with family to celebrate
his 60th birthday.
He said he comes to New
York about twice a year, and
Monday’s incident won’t
change anything. Terrorism,
he said, is just a reality we
have to accept. “This is unfortunately the time we live in,”
he said.
—Leslie Brody
contributed to this article.
ly
.
ANDRES KUDACKI/ASSOCIATED PRESS
BY CHARLES PASSY
Extra police deployed
at transit centers, large
events; ‘New Yorkers
won’t be deterred’
BY LESLIE BRODY
AND MIKE VILENSKY
The incident, which occurred
during the morning rush hour
in an underground tunnel that
links the Port Authority bus depot and the Times Square subway hub, reminded many New
Yorkers of just how vulnerable
such a vast city can be, even as
many vowed to go about their
business. Mayor Bill de Blasio’s
office underscored the need for
resilience, and late Monday afternoon his office tweeted a
photo of him riding the Q subway line, with the caption “New
Yorkers won’t be deterred.”
As a global symbol of commerce, culture and diversity,
the city has repeatedly been a
target of terrorist acts, including one on Halloween, when
authorities said an Islamic
State-influenced immigrant
from Uzbekistan drove a truck
down a bike lane, killing eight
people and injuring 12 more.
Six million people are expected to visit New York City
between Thanksgiving and
New Year’s Eve, up 10% from
2016, said NYC & Co., the city’s
official tourism organization.
The months of October, November and December are the
busiest travel period, it said.
Michael O’Neil, former commanding officer of the New
York Police Department Coun-
Deadly Attacks
In Area Since 9/11
borhood, injuring dozens of people, while another bomb didn’t
detonate. He was convicted in
October 2017.
JUNE 25, 2014: College student Brendan Tevlin was shot
eight times at a traffic light in
New Jersey. Authorities found
links to three earlier killings in
Seattle and charged a man with
all four.
OCT. 31, 2017: Eight people
were killed and at least a dozen
injured when a truck mowed
down pedestrians and cyclists
on a lower Manhattan bike path.
SEPT. 17, 2016: A New Jersey man planted two bombs in
Manhattan: one exploded near a
dumpster in the Chelsea neigh-
Dec. 11, 2017: Three people
were slightly injured in a botched
bombing near New York City’s
Port Authority Bus Terminal.
—Source: CATO Institute
and staff reports
terterrorism Division, said it is
a challenge to safeguard New
Yorkers when threats come
from a wide spectrum of actors, from homegrown extremists acting alone to sophisticated organizations. “You have
to protect against all of it,” he
said. “It’s like wrapping your
arms around Jell-O.”
Metropolitan Transportation Authority Chairman Joseph Lhota said that recent
simulation drills among public
officials helped them coordinate quickly on Monday. “If
you play football, you do exercises on Monday through Fri-
day and then on game day you
put on the uniform,” he said.
“In this case, it’s a game day
you hope never happens.”
Mr. Lhota said the MTA’s
motto, “If you see something,
say something,” played a key
role, noting that witnesses
called 911 within seconds of
the explosion, which helped
authorities get to the scene
rapidly. The transit hub has
many cameras, so the explosion was also caught on tape.
Mr. Cuomo said he directed
the state police to double the
number of troopers assigned
to the major transportation
hubs in New York City, where
they have been on a heightened state of alert since before
the start of the holiday season.
He said the New York National
Guard and Port Authority Police doubled their presence at
key sites as well, and customers would see more checks of
bags, buses, trucks and trains.
The MTA’s police department has stepped up its uniformed and plainclothes presence in New York Penn Station
and Grand Central Terminal as
well as other major stations in
the Metro-North Railroad and
Long Island Rail Road network.
John Miller, the NYPD’s
deputy commissioner of intelligence and counterterrorism,
said that since the World
Trade Center attacks in 2001,
there have been about 26 attempted attacks that officials
can discuss publicly that were
stopped through intelligence
and law-enforcement action.
“We have prevented a significant number of plots…but this is
a fact of life whether you’re in
New York or London or Paris,”
he said. “The question is can it
happen here, and the answer is
it can happen anywhere.”
—Zolan Kanno-Youngs
and Melanie Grayce West
contributed to this article.
n-
Officials implored New
Yorkers to be vigilant and help
law-enforcement agencies keep
them safe, after a suspect tried
to set off a crude pipe bomb
near the Port Authority Bus
Terminal Monday, just as the
city is welcoming millions of
tourists for the holiday season.
New York Gov. Andrew
Cuomo said he directed state
agencies to boost security at
high-profile locations around
the state while the investigation
progresses. He said additional
law-enforcement
personnel
were deployed in high-density
areas, transit hubs and large
public gatherings as a precaution, not based on any specific
intelligence on ongoing threats.
“Today we are reminded
yet again that the principles of
freedom and democracy that
New York represents have
made us a target for those
who seek to disrupt our way
of life,” Mr. Cuomo said.
co Fo
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Law-enforcement officials at work Monday after a man tried to detonate a bomb in a passage linking the Port Authority Bus Terminal and the Times Square subway hub.
As frightened pedestrians
ran from an explosion near the
Port Authority Bus Terminal
Monday, 28-year-old Port Authority Police Officer Anthony
Manfredini ran toward the area
where the device detonated,
said agency and union officials.
Mr. Manfredini, a former
canine-bomb technician in the
Marines, was the first of four
Port Authority officers who
apprehended the terror suspect after the morning rushhour blast, said Paul Nunziato,
president of the Port Authority
Police Benevolent Association.
Mr. Manfredini, was at his
post when he saw people running near the area where
Akayed Ullah, a 27-year-old
PORT AUTHORITY POLICE BENEVOLENT ASSOCIATION
BY MIKE VILENSKY
AND ZOLAN KANNO-YOUNGS
no
Hero Officers Likely ‘Saved a Lot of People’
Port Authority police officers, from left: Sean Gallagher, Drew
Preston, Jack Collins and Anthony Manfredini subdued the suspect.
immigrant from Bangladesh,
allegedly attempted to set off
a homemade pipe bomb
strapped to his body, authorities said. The explosive fiz-
zled, burning the suspect and
slightly injuring three others.
Mr. Manfredini took the device off the suspect, Mr. Nunziato said.
He then alerted the Port
Authority police desk and
three more officers, Jack Collins, Sean Gallagher and Drew
Preston, were sent to the
scene, Mr. Nunziato said.
The officers saw the suspect surrounded by smoke and
all four moved to restrain him,
he said.
“They saw wires, a cellphone,” Mr. Nunziato said.
“They didn’t know if he had
more devices on him. At that
moment, they made a splitsecond decision. They jumped
on him so he couldn’t detonate
anything else.”
“They all could have been
dead,” Mr. Nunziato said.
“They’re heroes…They saved a
lot of people tonight.”
Mr. Collins is a 45-year-old
attorney and 18-year veteran
with the Port Authority police;
Mr. Gallagher is a 26-year-old
former Marine; and Mr. Preston is a 36-year-old former
Army soldier who served two
tours in Iraq and one in Afghanistan, according to Mr.
Nunziato.
The officers couldn’t immediately be reached for comment.
The Port Authority on Monday praised their work as
rapid and decisive.
“Thanks to the quick response of these officers….
there were no serious injuries,
and the [bus terminal] was secured without further incident,” said Port Authority
Chairman Kevin O’Toole in a
statement. “Our officers put
themselves in harm’s way to
protect the public.”
OYSTER PERPETUAL
SUBMARINER DATE
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are ® trademarks.
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.
A12B | Tuesday, December 12, 2017
NY
* ***
THE WALL STREET JOURNAL.
GREATER NEW YORK
Fifth Ranks No. 2 in Rents
BY KEIKO MORRIS
BY JEANETTE SETTEMBRE
3 and Main Street in Cambridge, Mass., at No. 4.
Average office asking rents
for the Greenwich Avenue corridor, also home to hedge
funds and private-equity
firms, was $86.53 a square
foot, with prices on the upper
end hitting $101 a square foot,
according to the report.
The avenue will always
have some of the most expensive real estate in Fairfield
County, said George Walker a
JLL executive vice president,
but the greater Central Greenwich office market faces competitive pressure from surrounding markets such as
Stamford, Conn.
neighborhood restaurant in
New York City can cost between
$10,000 to $50,000, according
to creative agency Brandfire.
Family-owned Selena Rosa,
formerly Selena Rosa Mexicana on the Upper East Side,
paid $50,000 after international chain Rosa Mexicano
threatened to sue if it didn’t
change its name and logo.
Owner Sammy Musovic said
he had little choice. His family
already had spent more than
$100,000 to establish the
brand and market it.
“I had a trademark, but
there was really nothing we
could do; it was a big company
trying to take a small guy
down,” said Mr. Musovic, who
had to put a disclaimer on his
menu and website saying Selena Rosa isn’t affiliated with
Rosa Mexicano.
Rosa Mexicano didn’t respond to a request for comment.
Next Governor Meets
With State’s Senators
New Jersey Gov.-elect Phil
Murphy has met with the
state’s two U.S. senators to discuss working together when Mr.
Murphy takes office next
month.
Mr. Murphy spoke Monday
with Sens. Bob Menendez and
Cory Booker in Newark.
The three Democrats discussed issues including gun
safety, health care, transportation and the federal tax over-
haul bill currently in Congress.
Mr. Murphy has said he
would be solidly behind a longanticipated project to build a
new rail tunnel under the Hudson River.
He and Mr. Menendez
strongly criticized a bill recently
passed by the House that would
make it easier for gun owners
to legally carry concealed weapons across state lines. Mr. Murphy made gun safety a prominent issue in his campaign.
Mr. Murphy will succeed Republican Chris Christie, who was
term-limited from running again.
—Associated Press
Atla in NoHo, is sometimes confused with Alta in the West Village.
to buy a wedding suit.
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
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BORN TO DARE AND BLACK BAY ARE ® TRADEMARKS. NEW YORK.
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no
Prosecutors have dropped a
breach of peace charge filed
against conservative commentator Lucian Wintrich after a confrontation with protesters last
month at the University of Connecticut.
Mr. Wintrich, the White
House correspondent for the
right-wing website Gateway
Pundit, was accused of grabbing
a woman who allegedly took his
notes from the lectern as he
prepared to give a speech titled
“It’s OK To Be White.”
The woman, 33-year-old
Catherine Gregory, of Willimantic, turned herself in Sunday to
face charges of attempted larceny and disorderly conduct.
She didn’t immediately return
phone and email messages seeking comment. Ms. Gregory, who
is free on a $1,000 bond, is due
in court on Wednesday.
Mr. Wintrich, who had argued
he had every right to retrieve his
property, said outside the courthouse Monday he was pleased
“the system corrected itself.”
—Associated Press
TUDOR
Also in the New York metropolitan area, Greenwich Avenue in Greenwich, Conn.,
ranked among the most expensive office streets. The stretch
between Route 1 and the
Greenwich train station fell
one spot from fourth to fifth,
coming in behind Mission
Street in San Francisco at No.
n-
Charge Is Dropped
Against Commentator
A slew of similarly
named New York City
restaurants have
experienced mix-ups.
BLACK BAY
BRONZE
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
co Fo
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Fifth Avenue in Manhattan includes such high-profile towers as the General Motors building, left.
GREATER NEW YORK WATCH
UCONN
Alex Daniel was eager to try
the ceviche verde at Atla, a
Mexican-inspired tapas newcomer in Manhattan’s NoHo
neighborhood. But when the
25-year-old venture capitalist
arrived in an Uber car to meet
a friend for dinner recently he
quickly realized he was at Alta,
a Mediterranean small-plates
restaurant in the West Village.
“It was a simple mistake,
the names are so similar,” said
Mr. Daniel, noting that he entered the wrong restaurant
name in the Uber app. “It
could happen to anyone.” He
ended up walking about 15
minutes to Atla.
The Alta vs. Atla confusion is
the latest dining dilemma in
which a slew of similarly
named New York City restaurants have experienced mix-ups.
Earlier this year, a lawyer
representing Little Italy pastry-shop owner John “Baby
John” Delutro of Caffé Palermo
sent a cease-and-desist letter
asking the Broadway show “A
Bronx Tale” to remove a sign
from its stage set that referred
to another pastry shop as “The
Cannoli King,” infringing on
his trademark registration.
The show complied.
The most confusion in restaurant names in New York
City food history goes to Ray’s
Pizza. The original, at 27
Prince St., inspired dozens of
independently owned outposts
such as “Ray’s Original Pizza,”
“Famous Ray’s Pizza” and
“World-Famous Original Ray’s
Pizza.” Customers wondered
who the real Ray was.
The original location closed
in 2011. By then, there were
nearly 50 restaurants with
some variation of the Ray’s
Pizza name in New York City
including a place called Not
Ray’s Pizza in Brooklyn.
“People tend to use a similar restaurant name to one
with a good reputation on purpose because they know they
can capitalize on it. They want
to be able to associate with
another brand, but you end up
just confusing the customer,”
restaurant consultant Jason
Kaplan said.
Both the Alta and Atla restaurants have been caught up
in the customer confusion.
“We get guests showing up
when they don’t have a reservation,” said Ian Nal, a manager at Alta, a West Village staple for 15 years. “Sometimes
they’re half here, and half
there…It is confusing.”
Atla, a casual NoHo venture
from the Mexican-food chef
Enrique Olvera and Daniela
Soto-Innes, also has diners arriving at the wrong restaurant.
They usually end up staying,
but sometimes must wait until
a table opens up, owner Santiago Gomez said.
“I don’t think we’ll put a
disclaimer up on the site. Our
name is in all capital letters,”
Mr. Gomez said. He said he
and Alta’s owners have agreed
to redirect confused patrons
to the correct restaurant.
Changing the name of a
ly
.
ALEXANDER COHN/THE WALL STREET JOURNAL
Office rents on Midtown
Manhattan’s Fifth Avenue are
living up to the street’s pricey
reputation, according to a new
ranking of the nation’s most
expensive office strips.
Fifth Avenue came in second
behind California’s Sand Hill
Road in Menlo Park, recording
an average asking rent of $116.04
a square foot, and top asking
rents as high as $185 a square
foot, according to real-estate
services firm JLL’s 2017 Most
Expensive Streets. Sand Hill
Road’s average asking rent
reached $119.38 a square foot.
Popular with high-end investment and law firms, the office neighborhood along Fifth
Avenue from 50th Street to 61st
Street moved up from its third
place in JLL’s previous ranking
of expensive office streets in
2015, according to JLL.
The corridor, probably more
recognized for its expensive
retail rents, includes such
high-profile towers as the General Motors Building at 767
Fifth Ave., 9 West 57th St., and
745 Fifth Ave., home to Bergdorf Goodman’s men’s store.
“When you think about
Fifth Avenue buildings, they’re
comprised of a subset that are
all proximate to the park [Central Park] and have stellar
park views,” said Mo Beler, a
JLL managing director.
The Fifth Avenue office corridor’s vacancy rate of 11.9% in
the third quarter was higher
than Manhattan’s overall rate
of 10.2%, but Mr. Beler said
the almost 2 percentage point
difference is the norm.
In recent years, a number of
high-profile hedge funds and financial firms have signed leases
to relocate from Manhattan’s
traditional high-price office
neighborhoods, which includes
the stretch of Fifth Avenue
above 50th Street in Manhattan, to the emerging mixedused development called Hudson Yards on the far West Side.
Still, some of the building
owners are generational landlords who can afford to hold
out for premium rents and the
right tenant, Mr. Beler said.
Diners’ Dilemma:
Is It Atla or Alta?
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.
ART OF THE YEAR | By Karen Wilkin
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FROM LEFT: ROYAL COLLECTION TRUST/HER MAJESTY QUEEN ELIZABETH II 2017; MUSÉE DU LOUVRE, PARIS; PRIVATE COLLECTION
LIFE&ARTS
Tuesday, December 12, 2017 | A13
n-
no
MOST SPECTACULAR exhibition
of 2017? “Michelangelo: Divine
Draftsman and Designer,” at the
Met Fifth Avenue (through Feb. 12,
2018). Carmen C. Bambach, the
Met’s drawings curator, has assembled an astonishing group of
works—studies of limbs, agitated
figures from a Resurrection, urgent
drawings for the Sistine Chapel, an
exquisite portrait of a beloved boy,
and much more—that follows the
Florentine master’s evolution from
precociously talented student to
mature virtuoso. A stunning selection, from searching, early drawings
after Masaccio’s St. Peter in Santa
Maria del Carmine to fiercely articulated, muscular nude studies for a
late fresco in the Vatican, makes
Michelangelo come vividly alive. It’s
almost overwhelming.
Equally exciting, albeit quieter, is
“Vermeer and the Masters of
Genre Painting: Inspiration and
Rivalry,” at the National Gallery of
Art, Washington, the first study of
cross-fertilization among the leading painters of 17th-century Holland. The show’s 10 glorious Vermeers are revealed in new ways
through proximity to paintings with
similar subjects and compositions
by such contemporaries as De
Hooch, Metsu, Steen, and Ter Borch
(the most senior and, it turns out,
most inventive of the group).
Through Jan. 21, 2018, we can
slowly discover evidence of fruitful
exchanges and challenges, enriching and transforming our understanding of the Dutch Golden Age.
“Della Robbia: Sculpting With
Color in Renaissance Florence,”
at the National Gallery
earlier this year, combined charm and scholarship. The beautifully
installed show examined
the work of three generations of the Tuscan
family who invented a
new kind of glazed polychrome terra cotta in
the 15th century and became international superstars. The gleaming
white figures against
rich blue backgrounds,
amid colorful garlands
of leaves and fruit, were
irresistible, but these visual delights were also
fascinating revelations
of the range and significance of the Della Robbias’ works, contrasted
with the competition’s
efforts. We’ll never take
those delectable reliefs for granted
again.
“Seurat’s Circus Sideshow,” at
the Met Fifth Avenue, showcased
the artist’s eerie night scene, with
its flaring gaslights and stylized
performers, conjured up by drifts of
dots beginning in 1887, four years
CLOCKWISE FROM LEFT: KIMBELL ART MUSEUM, FORT WORTH; THE METROPOLITAN MUSEUM OF ART/JOSEPH PULITZER BEQUEST, 1921; COLLECTION OF PITT AND BARBARA HYDE
Clockwise from top left:
Michelangelo’s ‘Archers Shooting
at a Herm’ (1530-33); Johannes
Vermeer’s ‘The Astronomer’
(1668); Medardo Rosso’s ‘Ecce
puer (Behold the Child)’ (1906);
below: Andrea Della Robbia’s
‘Prudence’ (c. 1475)
Above: François Boucher’s ‘Juno
Asking Aeolus to Release the Winds’
(1769); left: Marsden Hartley’s ‘The
Lighthouse’ (1940-41)
before the artist’s death at age 31.
The sharply focused show explored
the painting’s origins through Seurat’s preparatory drawings and related works, contextualized by vernacular images that might have
inspired him and circus paintings
by his contemporaries, plus works
by later artists, from Bonnard to Picasso. We began to see how “Circus
Sideshow” evolved and how radical
it must have seemed when first
shown in 1888, a startling combination of timelessness, up-to-date
subject matter, and unprecedented
painting methods.
At the Pulitzer Arts Foundation,
St. Louis, “Medardo Rosso: Experiments in Light and Form”
surveyed the career of the maverick Italian sculptor (Seurat’s muchlonger-lived contemporary), with
an emphasis on his Paris years. A
fine selection of Rosso’s mysterious, blurred heads and figures,
along with drawings and photographs (like his friend and neighbor Degas, he was an early enthusiast of the new medium),
presented the idiosyncratic modernist whole and underscored his
lifelong experimentation with varied materials and techniques.
Overshadowed in his day by his
admirer Rodin, Rosso is still little
known. Let’s hope this fine retrospective corrects that.
An American maverick was the
subject of “Marsden Hartley’s
Maine,” at the Met Breuer, an inquiry into the resonance of the peripatetic artist’s native state, from
youthful plein-air studies to later,
deeply felt images of hunky male
bathers and economical views of
Mount Katahdin. Hartley’s admiration for Albert Pinkham Ryder and
Winslow Homer was evident in his
waves and woodpiles, but so was
his habit of aggressively front-facing composition and taste for saturated color. It was impossible not to
feel the absence of Hartley’s works
made in Germany; Gloucester,
Mass.; or Nova Scotia, Canada. But
the thematically limited selection
provided a welcome portrait of a
great, underrated American original.
The powerful effect of nonWestern art on Pablo Picasso, after
he visited the Ethnographic Museum of the Trocadéro, in Paris, in
1907, is a fundamental assumption
of the history of modern art. At
the Nelson-Atkins Museum of Art,
Kansas City, Mo., through April 8,
2018, “Through the Eyes of Picasso” showcases some of the artifacts he encountered at the museum and in friends’ collections,
and many of the more than 100 African, Oceanic and Meso-American
works he collected and lived with,
set among paintings, drawings and
sculptures he made in response.
The informative combination replaces speculation with hard evidence, clarifying our perceptions
of Picasso’s innovations.
Most delicious show of the year?
“Casanova: The Seduction of Europe,” a whirlwind tour of the arts
and culture of 18th-century Europe,
as experienced and commented on
by the Venetian-born rake Giacomo
Casanova in his autobiography. Not
just a paradigmatic libertine, he
was, among many other things, a
brilliant conversationalist who
knew everyone from Benjamin
Franklin to the librettist of “Don
Giovanni.” As installed at the Kimbell Art Museum, in Fort Worth,
Texas, through Dec. 31, a dazzling
selection of paintings, drawings,
furniture, decorative arts and costumes evokes Casanova’s restless
travels across Europe, as well as
his amorous adventures, imprisonment and escape. And yes, there is
an X-rated section.
Ms. Wilkin is an independent
curator and critic.
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 | Tuesday, December 12, 2017
LIFE & ARTS
BEST ARCHITECTURE OF 2017 | By Julie Iovine
Buildings of Quiet Ambition
FROM TOP: ALBERT VECERKA/ESTO/SOM ARCHITECTS (2); ALBERT VECERKA/ESTO/LEERS WEINZA; BRUCE FORSTER; ZELIG FOK AND HAYLIE CHAN (2)
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traditions with a modern sensibility often involving water and stone,
Mr. Kuma is also designing the stadium for the 2020 Tokyo Olympics.
Conceived in the 1950s as a healing cultural space, the Portland Japanese Garden is the most authentic
such garden outside of Japan. The
new visitor center functions as a
village-like portal to the gardens,
which now get over 350,000 visitors
a year. The approach follows a steep
path rising through Japanese maples and towering native Douglas
firs and wending upward to a formal stone stair. Visitors arrive at a
plaza surrounded by three bambooclad structures with low-swept
roofs stacked picturesquely. While
the structures house exhibitions,
horticulture classes, a gift shop and
a tea house that are too busy to
achieve much serenity, the visual
composition of mossy green roofs—
their edges curling out toward the
dense, ancient-echoing forest that
surrounds the clearing—is unrivaled
as a romantically exotic setting.
In March, the 2017 Timber Innovation Act was introduced in Congress to support research into using wood for structures over 85
feet tall. Considerable research already shows how composites such
as cross-laminated and glue-laminated timber can be more sustain-
no
THIS YEAR IN architecture saw
no major buildings launched with
the kind of hoopla that in 2016
greeted Santiago Calatrava’s World
Trade Center Transportation Hub
(the Occulus) and David Adjaye’s
National Museum of African American History and Culture. And
that’s probably a good thing.
Aspirational plays for iconic status can miss the mark. The standout
buildings completed over the
past 12 months
were instead
notable for focusing on concrete needs,
not dazzling
form. Longterm planning and a smart use of
innovation served a purpose.
In the Bronx, a new 911 emergency call center designed by Skidmore, Owings & Merrill is a cubeshaped fortress of shimmery
recycled aluminum serrated to
catch light and nestled into a sloping landscaped berm. Basically a
stronghold slotted with only a few
strategically placed windows, the
Public Safety Answering Center
II, or PSAC II (an older one is located in Brooklyn), is the most
technically advanced building
owned by New York City. Here is
where the police and fire departments coordinate emergency responses and it has been organized
with keen sensitivity both to intense security requirements and
the highly stressful nature of the
work, featuring not only a generator capable of supplying uninterruptible power but also workstations that can be customized for
sitting or standing. Workers get no
views, but the ceilings are high,
the indirect light is ample, and a
plant-filled green wall freshens the
air. Attention has been paid as
well to the forces’ different customs: The police prefer bright
lights and shared TV monitors; the
fire department wanted a dimmer
ambience and more individual
screens (two or three per desk).
PSAC II will handle over 10 million emergency calls a year, but for
drivers passing it on the Hutchinson
River Parkway at dawn or dusk, this
450,000-square-foot monolith looks
more like a pink-purple mirage gentled by a waving sea of grass.
On the West Coast, the Portland
Japanese Garden’s new visitor
center opened in April, the first
U.S. project by one of Japan’s most
eminent younger architects, Kengo
Kuma. Known for weaving old craft
ly
.
The Public Safety Answering
Center II, or PSAC II, in the
Bronx, designed by Skidmore,
Owings & Merrill, left, and its
plant-filled green wall, above.
The John W. Olver Design
Building at the University of
Massachusetts, Amherst,
designed by Boston-based Leers
Weinzapfel Associates, below
The Portland Japanese Garden’s new visitor center, designed by Kengo Kuma, above, and this year’s Jim Vlock
First Year Building Project, a 1,000-square-foot house for the homeless in New Haven, Conn., below
able, fire resistant, lightweight and
seismically viable than concrete or
steel. The new John W. Olver Design Building at the University of
Massachusetts, Amherst, designed
by Boston-based Leers Weinzapfel
Associates, is a forerunner. At only
four stories, it’s no timber sky-
scraper, but it is the first crosslaminated timber academic building in the country, housing the
university’s architecture, landscape
and building technology departments. Wrapped in copper-toned
aluminum panels on the outside,
its presence on the street is not especially glamorous. But its interiors radiate with the saturated
warmth long associated with
woodwork. Here it’s engineered
wood used in exposed beams, columns, braces, ceilings—even the
stairwells and elevator shafts. For
the flooring, an innovative wood
and concrete composite developed
right on campus is used here for
the first time. The Design Building
is helping to lay the foundations
for the smart use of mass timber in
ways that will soon enrich, and
transform, our built environment.
Not every year delivers major architectural stunners, but sometimes
there’s something even better—
buildings that contribute to a more
promising future. Since 1967, the
Yale School of Architecture has required first-year students to set
aside theoretical and academic
course work to actually build something that benefits the community.
Over the years (and depending on
available funds), students in the
Jim Vlock First Year Building
Project have designed and built—
hands-on—community centers,
bandstands, park pavilions and,
most recently, affordable housing.
This year, the 50th project was
completed: a 1,000-square-foot
house for the homeless. Clad in cedar with a standing-seam metal
roof and several window-seat-deep
gables, the prefabricated structure
contains one studio and a twobedroom apartment with abundant
built-in storage. Columbus House,
a New Haven nonprofit organization, will identify and provide additional support for tenants.
The Building Project has always
been highly commendable (and imitated at other schools), but this
year’s house is particularly sophisticated and handsome—worthy of
inspiring pride of place in whoever
is lucky enough to dwell there.
Ms. Iovine reviews architecture for
the Journal.
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.
Tuesday, December 12, 2017 | A15
CLOCKWISE FROM TOP LEFT: FOX SEARCHLIGHT PICTURES; WARNER BROS.; HBO; FX; NETFLIX; A24
LIFE & ARTS
Sally Hawkins, left, and Octavia Spencer in ‘The Shape of Water.’ Above,
director Christopher Nolan, left, and Kenneth Branagh on the set of ‘Dunkirk.’
TV AND FILM
‘Shape of Water’ Sweeps
Golden Globe Nominations
“THE SHAPE OF WATER,” an
amphibious love story between a
mute woman and a captive merman, emerged strong as the
awards season started Monday
with the Golden Globe nominations—a list that affirmed many
establishment names and snubbed
some critically lauded newcomers.
The lyrical movie by Mexican
filmmaker Guillermo del Toro received seven nominations, more
than any other film. “This was a
solution to a quest for a love story
that started when I was six years
old and watching ‘Creature from
the Black Lagoon’ for the first
time on TV and hoping that the
two lovers would end up together,”
Mr. del Toro said Monday. Unlike
the 1954 classic, his film delivers a
romantic ending: “In order to
make a movie like this, you have
to go at it unafraid.”
In the race for best director, often seen to predict movies that will
dominate the Oscars, filmmakers
who have enjoyed Hollywood’s embrace in the past did well, including Mr. del Toro, Steven Spielberg
for “The Post,” Christopher Nolan
for “Dunkirk” and Ridley Scott for
“All the Money in the World.” But
the Hollywood Foreign Press Asso-
ciation, which presides over the
awards, ignored lauded newcomers
in that category, such as Jordan
Peele, who was shut out of the directing and screenplay nominations
despite the critical and commercial
sensation stirred by his allegorical
horror film “Get Out.”
At a time when the fairness of
the playing field is under scrutiny,
no women directors were nominated, including Greta Gerwig. Reviewers had hailed Ms. Gerwig’s
filmmaking debut, “Lady Bird,” an
intimate story of the battle between a daughter on the cusp of
adulthood and her mother.
Both “Get Out” and “Lady Bird”
were nominated for best musical
or comedy motion picture. (Studios may choose a somewhat controversial categorization, to improve their films’ chances of
nominations and wins.) Ms. Gerwig received a nod for best screenplay. Daniel Kaluuya in “Get Out”
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over sexual-harassment accusations in the industry. The effect of
the tense climate on the awards
season is unclear. Jeffrey Tambor,
the star of the Amazon series
“Transparent,” who recently was
named in a sexual-harassment controversy, was snubbed along with
the show, which had been nominated every year since its 2014 debut and won for best comedy or
musical TV series in its first year.
In other possible signs of the
recent turmoil, “All the Money in
the World,” a psychological thriller
about the 1973 kidnapping of John
Paul Getty III that most U.S. critics
haven’t seen yet, landed a bestacting nomination for Christopher
Plummer. Last month, he took over
the role of J. Paul Getty after sexual-harassment allegations arose
against previous star Kevin Spacey.
Scenes were reshot with Mr. Plummer. Mr. Scott received a best-director nod for the film and Michelle Williams was nominated for
best actress in a drama.
“Despite the unexpected challenges we encountered after shooting was completed, we were determined that audiences around the
world would be able to see our
film,” Mr. Scott said in a statement. “Hundreds of people associated with the project put their
hearts and souls into every frame
to ensure that could happen.”
33
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City
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Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
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41
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28 pc
40 s
25 pc
50 s
15 sf
29 sn
32 s
32 s
27 s
23 s
45 s
21 s
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Tomorrow
Hi Lo W
50 27 r
60 39 s
32 24 pc
75 46 s
27 21 sf
31 13 pc
48 34 pc
62 34 s
53 30 pc
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63 46 s
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International
Tomorrow
Hi Lo W
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66 51 s
67 41 pc
90 77 pc
33 16 s
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80 64 s
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60 52 s
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41
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6 They’re often
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10 “___ live and
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11 Tie the knot
52
58
60
LIGHT SHOW | By Maxine Cantor
28 Fellow who
works at home
49 It has lights
31 Equivalent of
five carats
32 Beginning, as a
hobby
34 Lobster part
35 Add to the
payroll
36 Fall mo.
37 Profoundly
impress
40 Prime
42 Kidman of
“Moulin Rouge!”
12 Holy folks:
Abbr.
56
59
Across
1 Admitted
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5 Manipulative
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9 “Hurry up!”
57
43 “Hold on...”
14 Position for
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44 Least common
15 Some are
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48 Swallows
19 Twin-hulled
craft
47 Desire
49 River
movement
31 Be amused by
53 Lens covers,
of a sort
7 Colorful parrots
33 Eagle’s nest
56 Intimate
13 Be in charge of
34 It has lights
57 It has lights
15 It has lights
37 Rap sheet
datum
58 Lilac and
lavender
24 Busy buzzer
38 Youngest son on
TV’s “Empire”
59 Like many
streets
26 Carpal bones
location
54 Springy wood
39 Amiable quality
60 Cut out, as
part of an
organ
27 Towel
embroidery
55 Music producer
Brian
16 “Don’t be
ridiculous!”
17 The “curiously
strong mints”
18 It has lights
20 Felt contrite
about
41 Tears
42 Neither’s
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21 Arrangement
holder
45 Lamb’s mom
22 Bug catcher
46 McGregor of
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25 Blazed a trail
26 Stimulate, as the
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48 “Jane the
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Solve this puzzle online and discuss it at WSJ.com/Puzzles.
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Brussels
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Edinburgh
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64 51 s
66 42 s
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29 11 pc
43 31 c
37 33 pc
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78 65 s
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Istanbul
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Jerusalem
Johannesburg
London
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Manila
Melbourne
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Moscow
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Rome
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Singapore
Sydney
Taipei
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Vancouver
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30
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60s
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t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
41 34 sh 38 29 i
Atlanta
47 28 pc 48 35 s
Austin
63 30 s
66 37 pc
Baltimore
49 23 pc 32 22 pc
Boise
28 22 c
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Boston
46 28 i
32 21 pc
Burlington
34 23 sn 24 11 sn
Charlotte
53 23 pc 46 31 s
Chicago
24 15 pc 31 23 sn
Cleveland
30 16 sn 26 21 sf
Dallas
59 38 s
73 42 s
Denver
65 34 s
56 32 pc
Detroit
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and Saoirse Ronan in “Lady Bird”
received best acting nominations,
with Laurie Metcalf making the
best–supporting actress list for
“Lady Bird.”
The Hollywood Foreign Press
Association will announce the winners at its televised ceremony on
Jan. 7. Shortly after that, on Jan.
24, the Oscar race kicks into higher
gear with the announcement of the
nominees. On the TV side of the
Golden Globes list, HBO’s limited
series “Big Little Lies” received six
nominations, more than any other
small-screen contender. Following
that miniseries in the nomination
count were two FX limited series,
“Feud: Bette and Joan” and
“Fargo,” as well as the NBC show
“This is Us.” Also recognized: the
Hulu drama “The Handmaid’s
Tale,” which like “Big Little Lies”
won eight Emmys earlier this year.
In the TV categories, the Globes
reveal an industry split between
praising the same favorites—Liev
Schreiber, nominated for the fifth
straight year for Showtime’s “Ray
Donovan,” for example—and honoring newcomers such as Showtime’s
“SMILF,” a comedy series about a
single mom in south Boston, and
Amazon’s show about a female
stand-up comedian in 1950s New
York, “The Marvelous Mrs. Maisel.”
The Golden Globe nominations
arrive amid tumult in Hollywood
The WSJ Daily Crossword | Edited by Mike Shenk
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Among series and movies that drew nominations, clockwise from above, Emilia
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Ansari in ‘Master of None’ and Saoirse Ronan in ‘Lady Bird.’
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names fare better than some newcomers as awards season opens
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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.
A16 | Tuesday, December 12, 2017
SPORTS
NFL | By Jason Gay
ly
.
controls of a stellar operation.
Jeff Hostetler, anyone? The
Hoss famously led the Giants to a
Super Bowl win after Phil Simms
went down in the 1990 season.
But Foles is not Wentz, who was
both the spiritual and actual center
of the universe for this Eagles team.
The 24-year-old preternaturally
grasped and embraced his leadership role in a hard-to-please football
town. That was not a small development, especially for a newish pro.
He’s also just really, really good
at playing quarterback. It’s obvious to anyone.
It’s been that kind of year in the
NFL. Quarterback injuries had already reshaped seasons in Green
Bay, Houston, Arizona, Indianapolis and Miami. There have been
season-ending blows to other stars
(J.J. Watt, Odell Beckham Jr.) and
last week’s alarming spinal injury
to Pittsburgh Steelers linebacker
Ryan Shazier, who is still in the
hospital, prognosis uncertain.
On Sunday, the Houston backup
quarterback Tom Savage appeared
to suffer a concussion and some
kind of seizure—only to be allowed
back into the game.
This is football. Don’t buy all
that happy talk about precautionary measures and building a safer
game—there’s only so much that
can be done for a competition in
which high-velocity bodily collision is an essential constant. Everyone on the field is at risk. Very
few get through unscathed.
For Eagles fans, an injury to
Wentz is a painful way to be reminded of this fact. There’s a silver
lining somewhere in here, that numerous players have recovered
from ACL injuries, and that Wentz’s
leadership intangibles will probably
be sharpened by the perspective of
lost time. But that’s not great consolation amid a Philadelphia season
that looked outrageously promising—until, suddenly, it doesn’t.
In the meantime, doughnuts!
Get them. Your Eagles friends need
them. Now.
co Fo
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If you’re a Philadelphia Eagles fan,
I’ll assume you woke
up Monday morning
in a foggy, tormented
state. If you have a
dog, or a cat, you
didn’t speak to the dog, or the cat.
It felt like a hangover, even if you
didn’t have a hangover.
If you did have a hangover, I’m
sorry.
And I’m really sorry now—now
that it’s officially confirmed that
Philadelphia quarterback Carson
Wentz is out for the season. This
stinks.
If you’re friends with a Philadelphia Eagles fan, be kind to them
this week. Even if they’ve been
bristly or hard to deal with in the
past—show some good old-fashioned empathy for your Philly pals.
Get them a comfy blanket, and a
cup of coffee. Buy them a doughnut or two, to anxiety-eat.
Actually, make it two boxes of
doughnuts. It’s probably going to
be that kind of week.
Sunday was torturous for Eagles
Nation. Philadelphia won again, doing it on the road versus the newlyformidable Los Angeles Rams, 43-35.
The team is now 11-2, tops in the
NFC, and has clinched an otherwiseforgettable NFC East division over
Dallas, Washington and New York.
The bad news: UUGHHHHHHHH.
Carson Wentz—Philadelphia’s
second year quarterback and a lead
candidate for NFL MVP—tore the
anterior cruciate ligament (ACL) in
his left knee. Wentz left Sunday’s
game in the second half and was
replaced by backup Nick Foles.
A full diagnosis has yet to be
revealed before Sunday, allowing
optimistic Eagles fans (they do exist) about 12 hours of denial.
Maybe it’s a pop, or a twitch, or a
tweak, and not the type of tear that
will make Wentz miss the remainder
of the season. Maybe he misses a
few games, and is back for the playoffs. That’s good. We’ll take that.
Philadelphia would have thrown
KEITH BIRMINGHAM/SCNG/ZUMA PRESS
Please Hug a Philadelphia Eagles Fan
Philadelphia Eagles quarterback Carson Wentz walks off the field after injuring his knee against the Los Angeles Rams.
a parade if it had played out like
that. But it didn’t play out like
that. Eagles coach Doug Pederson
confirmed the ACL injury Monday.
Wentz is done for the season.
UGGGGGHHHHHHHHHHH
This (maybe) was going to be
Philadelphia’s year! Even if traditionally sky-is-falling Eagles fans
told themselves not to believe—to
fear something exactly like this injury was bound to happen—the
dreamy notion of Philadelphia as
possibly a Team of Destiny had to
cross their minds, especially after
the Eagles flew out of the gates 10-1.
They were a team with a brilliant young quarterback and without a glaring weakness. Even if
that loss in Seattle a couple of
Sundays ago exposed a few faults,
it was generally agreed the Eagles
would be a handful in the playoffs.
Now…what?
This moves us over to grim acceptance. Which is the hardest
stage, because it forces the fan to
consider A Life Without. For the Eagles, A Life Without means Foles,
who isn’t a disastrous backup option—he’s just 28, a former starter
himself who once had a shiny moment as the Philadelphia Quarterback of the Future. Football is a Next
Man Up business, and Foles will be
motivated by the chance to seize the
NBA
HARDEN, PAUL ARE STAGGERING
n-
Manchester City’s Nicolas Otamendi scores a goal against Manchester United.
PREMIER LEAGUE
no
MAN CITY PLAYS GUARDIOLA-BALL
BY JOSHUA ROBINSON
PEP GUARDIOLA has long said that
his ultimate soccer fantasy is to watch
his team have 100% possession—a
perfect, 90-minute game of keep-ball.
Just to be clear, this is impossible.
But that hasn’t stopped him from
chasing it since his earliest days as
Barcelona manager and then through
his years in charge of Bayern Munich. It was only when he took over
Manchester City last season that the
soccer world expected him to put the
dream on hold. The rough-and-tumble Premier League was supposed to
be inhospitable to Guardiola-ball, too
fast and too physical to pass the ball
around for minutes at a time.
Guardiola heard all of this. And
in classic Guardiola fashion, he
simply doubled down.
Now his undefeated side leads
the Premier League by 11 points
and is riding a 14-game winning
streak, a record within a single
season. But what is happening in
Manchester should worry the rest
of the English game far beyond the
current title race. Man City is on
the way to becoming the most
Guardiola team there’s ever been.
“This kind of play, we can do it
in England. That’s why I’m so
happy,” a downright giddy Guardiola said after City’s 2-1 victory
over Manchester United on Sunday. “The people said, ‘No, the way
we tried to play in Barcelona, in
England, it’s not possible.’ It’s possible. Always it’s possible to play
football, to try to keep the ball.”
Well, it’s possible if you’re City.
The club is averaging 66% posses-
sion, the most in Europe’s top five
leagues, and it is completing more
than 700 passes per game. (Consider that 18 of the 20 Premier
League clubs average fewer than
600.) Keeping the ball doesn’t necessarily translate to goals—but for
Guardiola’s City squad, it absolutely does. The team averages a
European-best 7.5 shots on target
per game, putting it on pace to
score 114 times in the league, exploding Chelsea’s record of 103.
Those kind of numbers are so
mind-boggling that the only teams
that bear comparison are other
versions of Guardiola clubs. At the
height of Barcelona’s pomp in
2010-11, the Catalan club averaged
67% possession and 7.3 shots on
target in a championship that is
widely regarded as less defensively
rigorous than the Premier League.
To Guardiola, those are the signatures of one fundamental objective every time his teams take the
field. “That means we want to
play,” he said.
Yet for all the intricacy of Barcelona’s style between 2008 and
2012, much of the system was designed with a simple conclusion in
mind: get the ball to Lionel Messi.
Barcelona lulled opponents out of
their formations and switched the
field with ruthless precision, all so
they could hit Messi in the space
just in front of the defenders.
The beauty of Messi and Barcelona in those years is that everyone knew what they would do and
still couldn’t stop them.
City’s attack is less laser-focused—which makes it that much
harder to predict. Already this sea-
son, Gabriel Jesus, Leroy Sane,
Sergio Aguero and Raheem Sterling have taken turns as the club’s
most lethal weapon in front of
goal. Each member of that quartet
has at least six goals in 16 games.
Just as defenses catch on to how
Guardiola uses one of them, he
pivots and chances start falling to
someone else. In other words, defending against City has turned
into a game of Whack-a-Mole.
It was even more telling that
the decisive moments in Sunday’s
win over United weren’t centered
on any of those four players. City
scored from two set pieces, with
goals by defender Nicolas Otamendi and midfielder David Silva.
Manchester City has now posted
victories against four other teams
in the top six, beating United,
Chelsea, Liverpool and Arsenal by
a combined score of 11-2. And if it
beats 19th-placed Swansea City on
the road on Wednesday night, it
will break the all-time record for
consecutive wins in the league.
Guardiola’s players refuse to
discuss locking up the title and he
won’t admit the possibility of going undefeated. From February,
they’ll also have the Champions
League to worry about again,
starting with a home-and-away
matchup against Swiss club FC Basel. But 18 months into Guardiola’s
transformation, it’s hard to imagine anything slowing down the
Manchester City steamroller.
“I knew that last season. I always believed we could do it,”
Guardiola said. “We showed that
this kind of football can be played
in England.”
THE HOUSTON ROCKETS made
a bold decision this summer to
build around two players who more
or less play the same position. It
already looks brilliant.
The results of their latest basketball experiment were delayed when
Chris Paul was injured and the
Rockets only had James Harden.
But for the last nine games, they’ve
had the incredible luxury of both
All-Star point guards, and this is
where the rest of the league might
want to stop reading. Because the
Rockets were 9-0 in those nine
games. They had the No. 1 offense
and the No. 1 defense in the league.
And it’s not only because of
how Paul and Harden are playing
together. It’s also because of
how—and how much—Paul and
Harden are playing apart. The
wildest part of this streak is that
Houston has not played a meaningful possession without Harden
or Paul. The way that Houston has
staggered its stars has been nothing short of staggering.
Paul and Harden have played together for 176 minutes in this run
that has given the Rockets the
NBA’s best record. Harden played
without Paul for 142 minutes, and
Paul played without Harden for 93
minutes. In the remaining 22 minutes, it didn’t matter who was
playing for the Rockets. They were
up by so many points with so little
time left that coach Mike D’Antoni
could’ve put himself at point guard
and Houston still would have won.
Too many NBA teams still resist
staggering their best players even
though every shred of information
suggests they should. And that’s because it’s trickier than it appears on
paper. The only way that staggering
works is when each player is willing
to do things a little differently.
Paul now comes out with roughly
seven minutes left in the first quarter, which is right around the time
when he used to settle into a
rhythm, and he comes back for
Harden about four minutes later,
even though Harden has traditionally rested at the beginning of the
second quarter. That first substitution is the key. It’s what allows the
Rockets to set their rotations for
the whole game. Paul and Harden
can start the first and third quarters
and end the second and fourth
quarters together, and it’s all because they alternate orchestrating
the team in between.
“We try to play a core group of
eight or nine guys,” D’Antoni said
in an interview before the season,
“and make sure our second team is
as good as our first.”
It’s working. The Rockets outscore their opponents by 14.7
points per 100 possessions with
Paul and Harden. Their lineups
with Harden but without Paul are
even better (25.7), and their lineups with Paul but without Harden
are somehow even better (31.6).
To put that another way: Harden
would run away with the MVP
award if the voting were held today, and yet the Rockets are destroying teams when he’s sitting
because his nominal backup is a
guy who is so good at point guard
that his nickname is The Point God.
ANDREW D. BERNSTEIN/NBAE/GETTY IMAGES
DARREN STAPLES/REUTERS
BY BEN COHEN
The Rockets have a winning formula with James Harden, left, and Chris Paul.
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.
Tuesday, December 12, 2017 | A17
OPINION
These developments, alas,
have encouraged two horrible
responses from Republicans.
The first is the call for Mr.
Trump to sack Mr. Mueller, an
idea news reports say is gaining traction inside the White
House. The other is for a new
special counsel to investigate
the existing special counsel.
Either would make a bad
situation worse. If the president fires Mr. Mueller now, it
will look as though he has
something to hide; if another
special counsel is appointed, it
will further diminish the
proper investigative authority
here—i.e., Congress. There are
better ways forward.
The special counsel’s
team raises questions
about its own fairness
and impartiality.
Start with the president. If
it’s true that there is no obstruction or Russian collusion,
his overriding interest lies in
full transparency. In a recent
piece for National Review, former federal prosecutor Andrew McCarthy asks why Mr.
Trump doesn’t just order the
declassification of material
such as the FBI’s application
for Foreign Intelligence Surveillance Court warrants to
wiretap Trump associates, so
Americans can see for themselves whether the FBI used or
misused information from the
infamous Steele dossier. Good
question.
My colleague Kim Strassel
has suggested the president
might create a temporary position at Justice for an appointee whose only job would be to
ensure Justice and FBI compliance with congressional oversight. Again, a good idea. But
even without a point man, Mr.
Trump as president has the
authority to declassify documents and have information
made public.
Here Donald Sr. might follow
the example of Donald Jr. Back
in July, amid reports that he
met with a Russian after being
offered dirt on Mrs. Clinton, the
first son released his email exchanges. He was similarly forthcoming last month, releasing
his direct-message exchanges
with WikiLeaks founder Julian
Assange after news broke they
had been in touch.
Then there’s Congress, which
has been rightly frustrated to
find the Trump Justice Department as obstructionist as the
Obama Justice Department. In
testimony last week, FBI Director Christopher Wray advanced
the extraordinary claim he can
hold back information from the
elected representatives of the
American people on the
grounds that it is classified or
that he’s waiting for an inspector general’s report and so, presumably, should they.
The message for Congress
is this: Why should an FBI director take you seriously
when you don’t take yourselves seriously? During the
IRS scandal, Lois Lerner rode
off into the sunset without
testifying because Congress
allowed the Obama Justice
Department to determine her
fate. Ditto for John Koskinen,
the IRS commissioner who
happily served out his time
when Congress should have
impeached him for his falsehoods and obstructionism.
In its 1821 decision affirming
the right of the House to hold
people in contempt and jail
them, the Supreme Court noted
that depriving Congress of this
authority would mean “the total annihilation of the power of
the House of Representatives”
to prevent people from just
flipping it the bird. Isn’t that
just what government officials
from Ms. Lerner to Mr. Wray
have been doing?
If executive branch officials
continue to play games with
subpoenas, Congress needs to
give them a taste of the legislature’s powers, whether by
cutting agency budgets, impeaching directors or holding
uncooperative officials in contempt. In this regard it’s good
to know Devin Nunes, chairman of the House Intelligence
Committee, is still pursuing
contempt citations for Mr.
Wray and Deputy Attorney
General Rod Rosenstein. A
contempt vote by the full
House would of course depend
on Speaker Paul Ryan, who
complained in October about
FBI “stonewalling.”
So forget firings and new
special prosecutors. Let the
president use his executive authority to make public the evidence that would tell the American people what really
happened. And let Congress
start acting like the coequal
branch of government the
Founders intended—and get to
the bottom of a story that involves the legitimacy of the
presidency, the 2016 election
and our federal institutions.
Write to mcgurn@wsj.com.
Fracking Our Way to Mideast Peace
W
no
hatever you think of
President Trump’s decision to recognize
Jerusalem as Israel’s capital, it
points to the most important
strategic reality in the Middle
East: Arab power has collapsed in the face of low oil
prices and competition from
American frackers.
The devastating oil-price
shocks of the 1970s, orchestrated by the Organization of
the Petroleum Exporting
Countries, nearly wrecked the
world economy. Ever since, the
U.S. has looked for ways to
break OPEC’s parasitic and
rent-seeking grip on the oil
market—and thereby to reduce
America’s geopolitical vulnerability to events in the Middle
East.
Victory did not come easily.
Intense conservation efforts
made the U.S. much more energy-efficient. New oil discoveries in Africa and elsewhere
significantly broadened the
available supply. Renewable
energy sources added to the
diversification. But the most
decisive development was that
decades of public and private
research and investment unleashed an American oil-andgas boom, leading to a revolution in energy markets that
has sent geopolitical shocks
through world affairs.
The consequences reverberate in the Middle East and beyond. Future oil revenues to
countries like Saudi Arabia,
Iran, Venezuela, Russia and
Iraq will fall trillions of dollars
short of what once might have
been expected. The shift in energy markets will benefit consumer economies like Japan,
China, India and the nations of
the European Union. The U.S.
and similarly situated nations,
like Australia and Canada, can
look forward to faster growth
and greater foreign investment, since they will capture
much of the oil revenue that
Russia and OPEC lose.
Low energy prices already
have given the EU’s struggling
southern countries a chance to
return to growth. They have
limited Russia’s prospects and
forced Vladimir Putin onto a
tight budget. They have largely
offset the gains Iran had
hoped to make from signing
the nuclear deal and escaping
Western sanctions.
But the greatest consequences are being felt in the
Arab world, where the longterm decline in oil revenues
threatens the stability of
many states. It is not only the
oil producers that will suffer;
the prosperous Gulf economies have been a major
source of opportunity for
Egyptians, Pakistanis, Palestinians and many other Middle Easterners.
The shining cities that rise
where the desert meets the
Gulf may be in for harder
times. The sheikhdoms’ glassy
skyscrapers, gleaming malls
and opulent apartment complexes were conceived for a
n-
By Walter Russell Mead
world in which runaway energy
demand and limited sources
(remember “peak oil”?) led to
inexorably rising prices. These
fragile and artificial economies
require hothouse conditions
that a weakened OPEC can no
longer provide. Now the great
Gulf Bubble seems set to slowly
deflate.
Low oil prices have so
eroded Arab states’
power, they now see
Israel as a protector.
OPEC states become apparent,
their diplomatic and economic influence across the
West can be expected to wane
even further.
Many analysts look at the
frustrations of America’s policy in the Middle East and conclude that the U.S. is in retreat
and hegemonic decline. That
misses the deeper truth.
American diplomacy has had
its share of failures, but the region is now being fundamentally reshaped by drillers in
Texas, Pennsylvania, North Dakota and elsewhere.
Even with OPEC’s hold broken, the Middle East will remain a problem for American
policy. Moreover, not all the
consequences of OPEC’s decline are good. In the short
term, Russia and Iran are
likely to double down on adventurous foreign policies as a
way of distracting their populations from the tough challenges ahead. Instability in
America’s key Gulf allies and
in Egypt could create major
headaches for the U.S.
Nevertheless,
reducing
OPEC’s ability to capture rents,
while forcing more corrupt
petrostate oligarchies to contemplate reform, is likely over
time to reduce both the costs
and the risks of American foreign policy. This is what winning looks like.
There’s more. The staggering affluence of the Gulf countries during the OPEC era concealed the Arab world’s failure
to develop states and economies capable of competing effectively in the 21st century.
As their dream of revival
through oil riches fades, they
are waking to a new era of
weakness and dependency.
The Gulf states increasingly
see Israel not as an insect to
be crushed by resurgent Arab
power, but as a lion that can
defend them from Iran. Syria,
once a citadel of Arab nationalism, now haplessly hosts
Russian, American, Iranian and
Turkish forces that the Assad
dynasty can neither control
nor evict.
Arab diplomats, lobbyists
Mr. Mead is a fellow at the
and financiers must brace for Hudson Institute and a profesmore bad news: As the declin- sor of foreign affairs at Bard
ing long-term prospects of the College.
Hooray for Bitcoin (but Don’t Buy It)
By Lawrence Baxter
T
he price of bitcoin broke
$19,000 last week, and
traders and speculators
are giddy. Fortunes are being
made. But in the long run, the
smart bet is against bitcoin,
for at least four reasons.
First, bitcoin is too volatile
to be a reliable store of value.
National currencies rest on the
real productivity and fiscal capacity of citizens. With bitcoin
there is no there there—only
some kind of euphoric trust.
But this trust is undermined
by hackers who have breached
bitcoin repositories.
Second, the bitcoin community is using breathtaking
amounts of electricity—about
as much as all of Denmark, according to one recent estimate.
The currency is built so that
recording transactions, and
thereby generating new bitcoin, requires solving complex
mathematical problems. This
keeps bitcoin scarce, but it
also means that massive
How the Richest
Got That Way
A Century of Wealth in America
By Edward N. Wolff
(Belknap/Harvard, 865 pages, $39.95)
L
ike Thomas Piketty’s “Capital in the Twenty-First
Century,” the book that it will inevitably be compared
with, Edward Wolff’s “A Century of Wealth in America”
is a massive tome. Its dense 865 pages come replete with
statistical tests, tables and equations describing the patterns
and history of wealth-holding in the United States. Very little
thought, however, has been given to making the presentation
interesting and engaging for the lay reader. This is a work for
specialists. Yet Mr. Wolff’s magnum opus is also a highly
timely book, for it contains a trove of interesting material
that is highly germane to a political moment when the issue
of wealth inequality is on everyone’s lips.
Drawing heavily for recent
years on the Federal Reserve
Board-sponsored Survey of
Consumer Finances, Mr. Wolff
finds evidence of a long-run
growth in wealth inequality in
the United States from 1946
on—though a much more
muted rise than other
researchers, such as Mr. Piketty,
have claimed. His evidence
suggests that the United States
now has the greatest wealth
inequality among developed
economies and that the recovery
from the recession of 2008 is
manifesting itself, in part, in a renewed
growth in the wealth of the richest.
Despite the liberal background of the author, however, “A
Century of Wealth in America” offers comfort and support to
those who favor less wealth taxation. A core element of Mr.
Piketty’s indictment of contemporary wealth inequality was
his claim that inheritance is the major source of wealth; he
estimated that, given the slower economic growth that most
economists anticipate in the future, inherited wealth would
soon constitute 90% of wealth in economies such as that of
the United States. But Mr. Wolff finds that, for modern America, wealth inheritance explains a much more modest share of
private wealth: In 1989-2013, it was 23% on average. In other
words, more than three-quarters of all wealth is created anew
in each generation in the U.S. From what activities that new
wealth comes, however, Mr. Wolff’s sources do not reveal.
The book is no guide to getting rich in modern America.
Even more surprising, inherited wealth is much more
important in the lives of those who have relatively little
wealth than it is in the lives of the super rich. For the top 1%
of wealth holders from 1989 to 2013, inherited wealth
accounted for only 17% of their assets. (The 1%, in this analysis, is an overwhelmingly self-made group.) By contrast, for
those with assets of just $25,000-$50,000, inherited wealth
accounted for 52% of their worth.
As a bizarre consequence of this pattern, African-Americans, who have low levels of net worth on average, are the
social group for which inherited wealth represents the largest
share of their net worth. Another odd implication is that
inheritances tend to make overall wealth-holding more equal.
Were inherited wealth to be completely abolished, the wealth
of the poor would decline more than that of the rich. Inherited wealth is the great equalizer. Who knew?
co Fo
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At a moment
when the special counsel’s
team is busy
calling
its
own fairness
and impartialMAIN
ity into quesSTREET
tion,
why
By William
would Donald
McGurn
Trump even
think of firing
Robert Mueller?
When the special counsel
picked his team, almost half
the lawyers he selected had
donated to Hillary Clinton. Legally that may not be disqualifying. It was, however, highly
imprudent for a man presiding
over the nation’s most sensitive investigation. Not a single
Mueller prosecutor had contributed to Mr. Trump.
Those donations now provide the context for more recent revelations about the partisan preferences of Team
Mueller. Start with the lead
FBI agent, Peter Strzok, who
exchanged anti-Trump, proHillary text messages with his
mistress, an FBI lawyer named
Lisa Page—who was then also
working for Mr. Mueller. Andrew Weissmann, the lead
prosecutor, not only attended
Mrs. Clinton’s election-night
soiree but turns out to have
cheered an Obama holdover at
the Justice Department, Sally
Yates, for her refusal to carry
out a presidential order. Meanwhile we learn that a senior
Justice official, Bruce Ohr, met
with both Trump dossier author Christopher Steele and
Fusion GPS co-founder Glenn
Simpson during the 2016 campaign—and that his wife
worked for Fusion GPS.
BOOKSHELF | By Gregory Clark
ly
.
Let Mueller Keep Digging
server farms are tasked with
essentially wasteful calculations. When environmentalists
begin to understand this, there
will be a firestorm.
Third, the currency is a vehicle for criminal transactions
and for avoiding government
restrictions on moving capital.
This is why bitcoin has been so
popular in Venezuela and
China, and why such countries
are cracking down.
Fourth and most important,
bitcoin is on a collision course
with sovereign states. Bitcoin
was founded on a libertarian
ethos, and its proponents zealously resist licensing and regulation. Taken to its logical conclusion, this philosophy would
entail the elimination of central banks.
So far, the volume of actual
bitcoin transactions has been
minuscule. Western governments are dozing. But if bitcoin ever grew to critical mass,
politicians around the world
would wake up.
King Philip IV of France
once could not repay his debts
to his bankers, the Knights
Templar. So in 1307 he had
their leaders arrested on
trumped-up charges and then
burned at the stake. No modern sovereign will give up the
power of the purse without a
similar fight, if perhaps a less
bloody one.
The price reached
$19,000 last week. It
is certain to hit zero.
fools to wonder where their
supposed wealth went and demand that government do
something about it.
All the same, the bitcoin
bubble is doing some good.
How can this be? The high
price of bitcoin, though wildly
fluctuating, is attracting attention to the underlying platform, called blockchain. This
technology could revolutionize
future transactions of many
kinds, providing secure execution of “smart contracts,” as
well as fast, efficient claims
processing that eliminates expensive middlemen.
Eventually those platforms
will be stable and secure. But
it will take a lot longer than
the frenzied bitcoin market
suggests. Before this frontier is
reached, bitcoin itself—neither
stable nor secure—will have
crashed to zero.
At the first serious (and
likely coordinated) move by
governments to regulate or
bank the digital currency, bitcoin’s price will crash to zero.
Panicked owners will rush to
exit and the bubble will burst.
Bitcoin futures and options
may just as well be based on
pixies and fairies. Nothing will
Mr. Baxter is a law profesbe able to save them. Specula- sor at Duke University, where
tors will depart for the next lu- he also co-directs the Global
nacy, leaving behind the greater Financial Markets Center.
In the U.S. more than three-quarters of all
wealth is created anew in each generation, and
the ‘1%’ is an overwhelmingly self-made group.
Why is inheritance so unimportant as a source of wealth
among the rich? Is it that children and other inheritors tend
to dissipate their inheritances quickly, so that newly created
wealth dominates in each generation? Or do the super
wealthy in the U.S. tend to bequeath much of their wealth not
to their children or collateral relatives but to charitable foundations? Unfortunately, Mr. Wolff’s sources are mute on these
questions as well.
Another intriguing correlation that Mr. Wolff’s sources
illuminate but do not explain is that between health and
wealth. While the top 1% of wealth holders are, on average,
20 years older than the typical person in the Survey of
Consumer Finances, they report themselves to be in much
better health than the average respondent. In 2013, for
example, 45% reported “excellent” health, and only 1%
reported “poor” health, compared with 24% and 6% for the
population as a whole. What is going on here? Does health
make wealth, or vice versa?
Finally, Mr. Wolff calculates that the rich are not systematically generating higher returns on their assets than more
modest wealth holders. The top 1% had a real return on net
worth of around 3% over the 30 years from 1983 to 2013—the
same return as the average wealth holder. Though the contents
of typical asset portfolios varied by wealth, the less-well-off
individuals with more of their investments in housing were
actually more highly leveraged than richer ones. In these years,
borrowing to invest turned out be mostly a good idea, helping
them generate average real net returns as great as those for
the richest. (In this calculation, Mr. Wolff has to assume that
the rich don’t have ways to generate higher returns on equity
than typical investors, or that any extra returns generated by
hedge funds and other investment vehicles that only the rich
have access to are consumed in management fees.)
The final chapter of “A Century of Wealth in America”
turns to tax policy. The corporate tax cut currently making its
way through Congress will benefit primarily the wealthy,
since they are the main holders of corporate stock, and Mr.
Wolff’s book illustrates well what a strange political moment
it is for Congress to be writing laws in favor of the wealthy.
But what would its author propose instead? Here the rich can
rest easy. Mr. Wolff argues for a Swiss-style levy on wealth—
i.e., assets, not income—that would average around 0.19% a
year, but only for assets above a generous threshold. And yet
the rather drastic measures the author proposes, he admits,
would “make barely a dent in overall wealth inequality,”
reducing the annual investment yield on wealth by about 6%.
“A Century of Wealth in America” could equally well serve
as a rallying document for supporters of the current tax bill
as for those favoring wealth taxation. An America where the
great bulk of wealth springs fresh from enterprise in each
generation, and where meritless inheritance is only a minor
source of riches, is one that is politically congenial for those
who propose incentivizing further wealth creation.
Mr. Clark, a professor of economics at UC Davis, is the
author of “The Son Also Rises: Surnames and the History of
Social Mobility.”
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.
A18 | Tuesday, December 12, 2017
OPINION
LETTERS TO THE EDITOR
The GOP’s Capital-Gains Tax Hike
GOP’s Tax Cuts Show Democracy Is Working
S
Macron’s Polling Revival
n-
omething remarkable is happening in thing Presidents such as Mr. Sarkozy had promFrance: Emmanuel Macron is becoming ised but never delivered.
popular again. Recent polls show the
Much of the credit goes to Mr. Macron. InFrench President’s approval
stead of concealing his reCould free-market
ratings rising from their lateform intentions before the
summer trough, a rare feat in
election, he created an elecreform actually be
French politics.
toral mandate for his ideas.
popular in France?
The Ifop-Fiducial poll reThat allowed him to roll the
leased last week is most strikunions and other special ining, with Mr. Macron’s apterests that in the past
proval rating now back to 50%, up six blocked labor reforms. He can now show voters
percentage points from November. Neither of a raft of new laws to help deal with the 9.7%
Mr. Macron’s two immediate predecessors, unemployment rate that consistently tops
François Hollande or Nicolas Sarkozy, managed their list of concerns.
to claw back to that level after they fell below
Mr. Macron’s revival in the polls also says
it. A similar trend appears in last week’s less something important about French voters. They
dramatic YouGov poll. Mr. Macron’s approval may have surprised themselves by electing a rein that survey stands at 35%, from a low of 30% former in the spring and seemed to suffer
in September. He won 24% of the first-round buyer’s remorse over the summer. But as Mr.
vote in the election last April.
Macron charges ahead, the French may not be
Mr. Macron still has a lot to prove, both as averse to market-based reforms as convenabout his policy ideas and his political acumen, tional wisdom suggests. If they see results,
but these results show that those who wanted they’ll support more reform.
to write his political obituary over the summer
This is a signal for Mr. Macron to seize this
were off the mark. Voters balked at early politi- political opening to push for further reforms
cal gaffes, but Mr. Macron turned things around that will liberate France from its long economic
when he released bold labor reforms—some- lethargy.
New York Gets Lucky Again
no
F
I started to buy into Tom Steyer’s
criticism of the pending GOP tax reform until he blamed the 2008 crash
on “dramatic deregulation coupled
with revenue-draining tax cuts”
(“This Tax Plan Puts Another Knife
Into American Democracy,” op-ed,
Dec. 6). It wasn’t deregulation, but
overregulation, that forced banks to
approve loans to people who were
poor credit risks. The Obama administration doubled down on regulation,
over-taxation and profligate spending. Deregulation and tax relief are
exactly what Americans need.
TED YEAGER
Daytona Beach, Fla.
The late Hugo Chávez seduced
Venezuelans with promises to address the inequality tugging at the
seams of their society by providing
free or subsidized goods and services.
In 1999 Venezuela was one of the
most prosperous countries in South
America. Mr. Chávez found it necessary to take an ax to Venezuela’s democracy so that he could create a
workers’ paradise before the private
sector collapsed. Affluent Venezuelans fled. Many of them headed to
Florida, where they may help keep it
from turning into a blue state.
The heart of Mr. Steyer’s case
against the GOP tax plan is publicsector versus private-sector control
of resources, not rich versus middle
class and poor. When the public sector wins in a rout, you get Venezuela
or Cuba. Mr. Steyer and his ilk argue
that this time is different because of
globalization, technology or a stacked
deck that favors the privileged, but
the historical record is that “this
time” is never different.
TIM LIVINGSTON
Alexandria, Va.
I find it amusing that Tom Steyer
is worried about the GOP tax reform
putting a knife in American democracy when he is spearheading a
movement intended to overturn the
results of a democratic election.
MICHAEL FREEMAN
Sanger, Calif.
Mr. Steyer predicts the collapse of
the U.S. financial system if the GOP
tax cuts pass since we can’t afford
another $1 trillion of debt, yet he was
silent when President Obama added
almost $9 trillion to our debt.
JOE NOVAK
Chardon, Ohio
Only a big-government socialist
could describe tax cuts as “revenuedraining.” To the people keeping
more of their hard earned money, it
is called revenue-enhancing.
DAVID MURPHY
Travelers Rest, S.C.
There will always be people who
choose to view the world in a zerosum manner. Congress must resist
these misguided voices and continue
its efforts to simplify and flatten the
nation’s tax code.
ERIC WAINWRIGHT
Boulder, Colo.
Alabama’s Voters Face a Very Hard Choice
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epublicans are on final approach to land investment company” such as mutual fund outtheir tax bill out of House-Senate confer- fits. Vanguard, Fidelity and friends won a disence, and for the most part the winds pensation because they convinced Congress
look favorable. Yet one surpristhat the rule would be costly
The Senate bill
ing provision in the Senate bill
and inefficient. That’s true,
would gratuitously harm indibut then why impose it on
would make you sell
vidual investors, and the GOP
Aunt Millie who has held her
long-held stocks first. shares in Procter & Gamble for
ought to eliminate this de facto
increase on capital-gains taxes.
a generation?
The Senate bill creates a
The answer appears to be a
“first-in, first-out” requirement for investors money grab as the Senate scrambled to stay unwho sell their stock investments. Stephen Entin der its $1.5 trillion fiscal limit over 10 years. But
at the Tax Foundation describes it this way: A the first-in first-out provision would yield
person buys 100 shares of a company at $25 a about $2.7 billion over 10 years, which is a pitshare in 1990. Then in 2005 he buys a 100 more tance; the child tax credit expansion would cost
for $50 a share. Now he wants to sell 100 shares $584 billion. The $2.7 billion estimate is almost
at the current price of $100. The Senate bill surely wrong in any case because investors will
would force this investor to sell the older shares change their behavior, and capital-gains realizafirst, which would expose the investor to a tions are especially sensitive to changes in tax
higher tax liability on the capital gain—a gain rates.
of $7,500 versus $5,000.
Ronald Reagan’s 1986 tax overhaul increased
This is a lousy idea for several reasons. One the maximum capital-gains rate to 28% from 20%.
is that older shares tend to have more gains, as Realized gains as a share of the economy shot upcompanies grow and the market rises over time. ward in 1986, as investors rushed to cash in
Markets can benefit from investors who buy ahead of the higher rate. Realizations promptly
and hold stocks even amid the occasional cor- fell once the higher rate hit. The reverse haprection and recession, and the Senate punishes pened when George W. Bush cut the rate in 2003.
this behavior.
And even though the increase will produce little
Some gains on long-held shares are also the for Treasury, “it will affect the management of
result of inflation, so forcing their sale would several trillion of dollars of individual and mutual
make investors pay taxes on those artificial fund assets,” as Mr. Entin notes.
gains before they might want to. Some invesThis measure will also hit many of the same
tors also like to balance their gains in some folks who are losing the state-and-local tax destocks against their losses in others to minimize duction with no commensurate relief in the top
their tax liability. This is especially important income-tax rate for individuals (38.5% in the
given that investors can only write off $3,000 Senate bill, down from the current 39.6%).
in losses net of gains in any one year.
These filers tend to claim a higher proportion
More than 40 House Republicans noted in a of their income in investment. The irony is that
letter last week that the move would reduce the bill continues to be attacked as a sop to Mr.
market liquidity by locking investors into Moneybags even as many provisions hit the 1%
shares they don’t want to hold. This could also with tax increases.
slam retirees who cash in on investments for
By the way, all of this would be a mess for
income or employees who are offered compen- tax compliance, though the ostensible purpose
sation in the form of stock.
of reform is to simplify the code. But the larger
Even worse, and this is hard to believe, the principle is that investors should be allowed to
provision applies only to retail investors. The manage their own assets as they fit, which is
Senate language exempts sales by “a regulated something we thought Republicans believed.
ly
.
R
REVIEW & OUTLOOK
or years after the 9/11 destruction of the about police surveillance. In 2007 Mitch Silber,
World Trade Center towers, it was a then the NYPD’s top terrorism analyst, issued
point of civic pride among New Yorkers a detailed report, “Radicalization in the West:
and their stellar police departThe Homegrown Threat.” Mr.
Three homegrown
ment that no serious terrorist
Silber and co-author Arvin
attack had succeeded again in
Bhatt were prescient, but civil
jihadists
have
struck
America’s foremost urban tarliberties groups denounced
the city in 14 months. his report for its “stigmatizget. Now that may be changing, which raises questions
ing effects” and supposed reabout whether the post 9/11
ligious profiling.
status quo needs to be re-examined.
Then in 2011 a series by the Associated Press
Monday morning’s failed pipe bombing by described an NYPD program, the so-called “DeBangladeshi Akayed Ullah at rush hour near the mographics Unit,” which surveilled Muslim
Port Authority bus terminal is the third attack neighborhoods and mosques for information on
in New York City by an Islamic terrorist in the where a terrorist might seek a job off the books
past 14 months.
or a cheap place to stay. Under the same presOn Halloween day this year, Sayfullo Saipov, sure brought to bear on the Silber report, the
a New Jersey resident, drove a truck down a department shut down this covert surveillance
lower Manhattan bicycle path and killed eight program in 2013.
people. A year before, Ahmad Khan Rahimi, also
Though bicycle-path killer Sayfullo Saipov
of New Jersey, detonated a pressure cooker attended the same mosque in Paterson, N.J.
filled with ball bearings on a street in the down- surveilled by the NYPD years before, the autown Chelsea neighborhood. Rahimi planted thorities conveyed to the public after the Octotwo other bombs, one nearby in Chelsea and an- ber attack that his mosque attendance was irother in Seaside, N.J. No one died but he relevant. The NYPD’s current anti-terror
wounded 30.
specialists insist nothing material has altered
The fact that no one died in two of these inci- their ability to collect information or data
dents is little solace. Make no mistake: On Mon- about potential attacks.
day New York City averted a major calamity.
What a comfort it would be to be confident
In won’t do to dwell on the New York terror- that this repeated reassurance is true. But the
ists’ bomb-detonation ineptitude. That’s dumb patience of New Yorkers—and of all Ameriluck. The driver who plowed through pedestri- cans—is being pressed. After the bike-path atans in Nice on Bastille Day last year killed 86, tack, Mayor Bill de Blasio ordered more concrete
and the United Kingdom’s Manchester Arena barriers erected, a thumb-in-the-dike gesture
suicide bomber this May killed 23 and injured that New Yorkers mocked as feckless.
more than 500 people.
What we know as fact is that homegrown
New York Governor Andrew Cuomo said terrorists who lived in Muslim neighborhoods
Monday morning, “This is one of my worst have slipped through the city’s security apparanightmares—a terrorist attack in the subway tus three times in just over a year. With all resystem.” That’s right, Governor, as it is con- spect to the city’s multiple political sensitivistantly for all the millions of New Yorkers sit- ties, we suggest the time to have a debate about
ting in those subway cars every day.
expanding surveillance is before a local terrorAfter 9/11, two of the most significant ter- ist kills many more innocent pedestrians or
ror-related incidents were political disputes commuters, not the day after.
Your editorial “Judging Roy Moore”
(Dec. 6) finds the complaints against
Mr. Moore persuasive. But Democratic
candidate Doug Jones’s name doesn’t
appear in your editorial. Mr. Jones believes children may be killed even as
they are being born, as he supports
partial-birth abortion. The real issue
is: Between these two candidates, who
is most problematic?
As for the Senate “investigating”
Mr. Moore, should he win, this is theater. The only constitutional requirement to run for the Senate is age and
citizenship.
GEORGE J. DANCIGERS
Sarasota, Fla.
Treasury Is Working Toward
More Rational Regulation
Regarding Peter J. Wallison’s “The
Trump Treasury’s Disturbing Regulatory Turn” (op-ed, Dec. 7): Over the
past six months the Treasury Department has issued a series of reports that
chart a course for meaningful reform
of U.S. financial regulation. The proposed reforms seek to foster growth
and vibrant financial markets by making regulation efficient and tailored.
In its latest report, Treasury proposes substantial reforms to the Financial Stability Oversight Council’s process for designating financial firms for
heightened regulation. I was surprised
to read that my distinguished predecessor understands Treasury to favor
an “expansion” of the FSOC’s designation power. Not so. In fact, the Treasury recommendation in question addresses not designation (Section 113 of
Dodd-Frank), but rather the FSOC’s authority to make nonbinding recommendations to a firm’s primary regulator
(Section 120)—a less burdensome alternative to designation.
To be clear, Treasury does not endorse expanded use of the FSOC’s designation authority. Treasury’s report
says the FSOC designation is a “blunt
instrument” that may impose “unnecessarily burdensome regulatory requirements” and should be used only
as a last resort. We propose that,
rather than designating firms, the
FSOC should defer more to firms’ primary regulators to address activities
that could threaten financial stability.
Treasury recommends reserving designation for “the rare instance” in which
a firm “could pose a threat to financial
stability, but a primary regulator hasn’t
taken or cannot take adequate steps to
address the risk.” We also believe that
the designation process needs to be
more transparent and subject to
greater analytical rigor, including costbenefit analysis, while providing a
clear off-ramp for designated firms.
Given the Dodd-Frank Act’s Byzantine complexity, confusion is inevitable.
But it is important to set the record
straight regarding Treasury’s firm
commitment to financial regulatory reforms that promote growth, protect
the taxpayer and enable American
businesses to prosper.
BRENT MCINTOSH
General Counsel
U.S. Department of the Treasury
Washington
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.
Roy Moore has been a high-profile
force in Alabama politics for a long
time. Where have all these accusers
been? If they wanted to expose Judge
Moore, they should have come forward during the primary and encouraged the people of Alabama an opportunity to choose a different
Republican candidate.
FRED FISHER
Milton, Fla.
I would welcome a Senate Ethics
Committee investigation of Roy
Moore after his election. Presumably
his accusers would have to publicly
present some evidence, and he could
make his case directly without the
media bias.
CRAIG BURTON JR.
Northport, Ala.
So Roy Moore is guilty because
some women say so. End of story.
Then we owe the clerics and magistrates of Salem of the 1690s a huge
apology—all they did was “believe the
women.” Evidence? Proven character?
Presumption of innocence? Irrelevant
once the PC mob gets going.
We don’t convict pickpockets on
this basis in our country.
ELIZABETH MULGREW
Upper Darby, Pa.
Regarding your editorial “Trump’s
Frankenmoore Nightmare” (Dec. 7):
Not too long ago the same people who
tossed Sen. Al Franken under the bus
were drinking the good stuff with
Harvey Weinstein at fundraisers and
blushing like women in love when
they had a chance to get a picture
with Bill Clinton.
I don’t envy the job of the citizens
of Alabama. However, neither party
should pretend that the people don’t
see through them.
GILBERT R. SANDGREN
Green Bay, Wis.
Sunshine Is the Disinfectant
For Federal Sexual Harassers
Regarding “House to Expand Harassment Training” (U.S. News, Nov.
30): Rather than mandate the entire
Congress attend yearly seminars
about sexual harassment, the publication of all the facts of the settlements
of the past 15 years would do more to
prevent harassment than anything
else. It would be much cheaper also.
JANE GUNDY
Huntsville, Ala.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“So, when we left off last week you
were expressing your shame over
not having granite countertops…”
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.
Tuesday, December 12, 2017 | A19
OPINION
Round Up the Usual Tax-Reform Suspects
hedged against market risk, most
hedge funds are less risky than a
typical market index fund. With
more than $3 trillion of capital,
they are now an important and
common part of the investment
landscape. It has been decades since
they could plausibly be described as
exotic investment choices only
available to rich people. Instead,
hedge-fund investors are now primarily pension funds and other
large institutions that badly need
diversification.
Hedge funds are managed by asset managers of many stripes.
Some of the smallest funds are
ly
.
Hedge-fund managers
are an easy target, but
we don’t even benefit
from the status quo.
unabated. We also expect America’s world-leading money-management business, with its huge
number of high-paying and
high-taxed jobs, to grow more
slowly than it could. The very
things tax reform is intended to
do—but actually does only for
favored industries—will happen
in reverse for the disfavored.
This is not the stated intention
of the GOP plan, but it is a consequence of its indifference to
the global market in which
these businesses compete. By
carving out some pass-through
businesses, like asset management, for higher rates than others, lawmakers decided to use
tax reform to pick winners and
losers. In the process they are
generating headwinds for a dynamic and competitive industry
in which the U.S. holds a substantial edge—for now.
We don’t believe investment
managers need lower rates to
remain competitive, and we’re not
campaigning for them. But rate increases of as much as 7 percentage
points, as appear to be in the offing, could easily be enough to make
U.S.-based hedge funds substantially less competitive. Few are actually going to pick up and move
soon, but America’s increasingly—
and selectively—progressive tax
code will shift growth incentives
toward the friendlier tax regimes of
other major financial centers like
Hong Kong and, odd as this may
sound, post-Brexit London.
Of all the industries in all the
towns in all the world, tax reform
had to walk into ours.
MICHAEL OCHS ARCHIVES/GETTY IMAGES
L
ike Captain Renault in
“Casablanca,” the politics
of American tax policy
features a lineup of the
usual suspects. In recent
years those parts have been played
by hedge-fund managers. Some criticism of the business practices and
performance of asset management,
and hedge funds in particular, is deserved. We have frequently been
critical ourselves. Nevertheless, the
constant claims about tax dodging
by hedge funds are false.
The term “hedge fund” is a loose
one. Think of it as an investment
vehicle that is fairly unconstrained,
typically invests in liquid securities,
holds long and short positions, and
is often leveraged. While not fully
composed of three employees
and a Bloomberg terminal.
More-established players manage tens of billions or more and
have 1,000 employees. They are
diversified alternative investment firms or giant traditional
managers that offer clients the
opportunity to invest in everything from index funds to other
hedge funds.
Nearly all hedge-fund managers have one thing in common: If they are successful,
they face—and actually pay—
large tax bills at high marginal
rates. They have historically
situated themselves in high-tax
jurisdictions like New York,
Connecticut, New Jersey and
California because these are
places where the largest number of suitably trained employees can be found. Moreover,
their income tends to be what
the tax code calls “ordinary” Captain Renault (second from left) in ‘Casablanca.’
rather than “long-term capital
gains.” Much of what they earn as passed by both the House and
As it stands today, the Republicomes from management fees that the Senate, which claims to address can pro-business tax reform apare always treated as ordinary in- the carried-interest question, pears to be very good for certain
come. The rest is from performance misses the mark. It does hit hedge businesses and very bad for others.
fees on investments that mostly funds by extending from one to It’s good for multinational corporaaren’t held long enough to qualify three years the time required to tions, which will get big rate reducfor the preferred treatment.
get the favorable treatment, but tions, but bad for asset managers
With all the current emphasis on most hedge funds hold only a small and some other similarly structured
reducing the tax burden on busi- number of investments that long. nonfinancial businesses, which will
nesses, you might think hedge-fund The real beneficiaries are private- see their combined total tax rates
managers eagerly await the final equity managers, who tend to hold jump to well over 50% in some jupassage of tax reform. They don’t. positions for longer than three risdictions. Our guess is that hedgeAnd it isn’t because Congress is years.
fund managers would gladly suffer
trying to eliminate the so-called
To the delight of cynics every- the abuse they take over how they
carried-interest loophole in the fi- where, it looks as if private-equity are currently taxed if they actually
nal bill. Most hedge-fund managers managers will retain their large benefited from the status quo. But
don’t actually get much benefit benefit while hedgies and other ac- paying at the highest rates while
from the carried-interest provision tive managers will lose their small being accused of dodging taxes alof the tax code because relatively one. It’s the “Casablanca” approach: together is too much to ask anyone
little of their income is both eligi- identify unsympathetic parties and to endure.
ble to be called “carry” and held hassle them a bit, just to show
We expect criticism of hedgelong enough to be considered you’re doing something, even if it’s fund managers and their supposed
“long-term gains.” So the tax bill a complete diversion.
artful dodging of taxes to continue
Mr. Asness is managing and
founding principal and Mr. Mendelson a principal of AQR Capital
Management LLC.
co Fo
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By Clifford Asness
And Michael Mendelson
China’s Chilling ‘Social Credit’ Blacklist
A
pple CEO Tim Cook looks forward to a “common future in
cyberspace” with China, he
told the Chinese government’s World
Internet Conference earlier this
month. This was an embarrassing
gesture toward a state that aggressively censors the internet and envisions a dystopian future online.
A lawyer is barred from
buying a plane ticket
because a court found
his apology ‘insincere.’
no
The experience of lawyer Li
Xiaolin may give a taste of what
that future looks like. During a 2016
work trip inside China, he tried to
use his national identity card to
purchase a plane ticket. To his surprise, the online system rejected it,
saying he had been blacklisted by
China’s top court. Mr. Li checked
the court’s website: His name was
on a list of “untrustworthy” people
for having failed to carry out a
court order in 2015. He thought he
had resolved the issue, but now he
was stranded more than 1,200 miles
from home.
Mr. Li’s dilemma was due to the
Chinese government’s ambitious “social credit system.” Launched by the
government in 2012, it vows to
“make trustworthy people benefit everywhere and untrustworthy people
restricted everywhere” by the time it
is fully implemented in 2020.
This is no anodyne credit score.
By rating citizens on a range of behaviors from shopping habits to online speech, the government intends
to manufacture a problem-free society. Those with low scores will face
obstacles in everything from getting
government jobs to placing their
children in desired schools. It remains unclear exactly who will run
the system, whether or how one
could dispute scores, or even
whether the system is legal.
As part of this scheme, the Supreme People’s Court has published
lists of people who have failed to
carry out local court orders since
2013. These untrustworthy “chronic
cheats” are named, shamed and
barred from flights and fast trains.
Some local governments even put
their pictures, full names and addresses on billboards. By 2017 it imposed such punishments more than
seven million times.
How did Mr. Li get on the list? In
2013 he defended a man accused of
rape. The lawyer gave a copy of his
defense statement to the man’s family. Unknown to him, they posted it
online. The alleged victim sued Mr.
Li for defamation and won, and in
2015 a Beijing court ordered him to
apologize. Mr. Li sent the court a
written apology. He had forgotten
the incident until he found himself
blacklisted. He learned that the
court inexplicably dismissed his
apology as “insincere,” in part because he had dated it April 1.
In 2013 investigative journalist
Liu Hu published an article alleging
someone was an extortionist. Two
years later the man successfully
sued Mr. Liu for defamation. The
court said it would issue an apology
in a newspaper on his behalf and at
his expense. He wired money to the
court, but months later Mr. Liu
abruptly found that he couldn’t buy
plane tickets. Only then did a court
official say the payment had not
been received. Mr. Liu immediately
corrected the mistake.
There is nothing wrong about
authorities enforcing legitimate
court orders, but in the case of
Messrs. Li and Liu, penalties were
exacted in wildly arbitrary and unaccountable manners. And the
courts failed to notify them, leaving
them no chance to contest their
treatment. While both found a loophole—using their passports to buy
tickets in person—their lives were
initially upended, and they have
faced enormous difficulties challenging the designation.
When Mr. Li, the lawyer, was first
blacklisted in 2016, it took three
weeks before an official talked to him.
n-
By Maya Wang
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The court requested a second apology, which he wrote, leading to his
removal from the travel blacklist.
But he remains on another list,
about which he had not been previously informed, this one prohibiting
him from applying for credit cards.
The court has told Mr. Li to write
another apology.
The journalist, Mr. Liu, remains
blacklisted. The court now requires
a payment several times the going
rate for a newspaper apology in
comparable cases. He sued the court
for having abused its power but has
had no response.
Chinese government authorities
clearly hope to create a reality in
60 YEARS OF ADVENTURE
AND DISCOVERY
which bureaucratic pettiness could
significantly limit people’s rights.
As President Xi Jinping’s power
grows, and as the system approaches full implementation, more
abuses will come.
Ms. Wang is a senior China researcher for Human Rights Watch.
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.
A20 | Tuesday, December 12, 2017
co Fo
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ci on
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us l,
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on
ly
.
Expanding
credit access
responsibly.
Dear Lenders, Policymakers and Consumer Advocates,
FICO has been the independent standard in credit scoring,
trusted by lenders and securitization investors for decades.
FICO is not owned by the credit bureaus.
We are an independent company committed to fair lending
and science-based credit evaluation.
INDEPENDENCE
Weakening scoring standards harms
consumers and the lending system. FICO grows credit access
while upholding the highest standards in the industry.
no
n-
SOUND PRACTICES
FICO continues to invest in new products,
partnerships and advanced scoring analytics that empower
lenders to safely and responsibly approve more loans.
PRODUCT INNOVATION
Drawing on reliable new sources of data,
FICO scores more creditworthy people unable to obtain
traditional credit using credit bureau data alone.
ALTERNATIVE DATA
Learn more at FICO.com/independent
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.
TECHNOLOGY: EX-GAWKER STAFFERS HOPE TO RESURRECT WEBSITE B5
BUSINESS & FINANCE
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THE WALL STREET JOURNAL.
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LIBOR 3M 1.563
Tuesday, December 12, 2017 | B1
NIKKEI (Midday) 22945.80 À 0.03%
Web Satellite Startup Powers Up
Japan’s SoftBank Group
Corp. has agreed to invest
roughly $500 million more in
satellite broadband provider
OneWeb Ltd., according to a
person familiar with the details, boosting the U.S.
startup’s plan to offer significantly faster internet connections world-wide than most
traditional systems, either
space-based or terrestrial.
The latest commitment
Comcast
Ends Its
Pursuit of
Fox Assets
The planned cash infusion brings
SoftBank’s total to $1.5 billion
ously announced initial fleet
of more than 700 small, lowaltitude satellites is “generally
on schedule” for launches beginning next year, starting to
market service over Alaska in
inexpensive internet links relying on light, versatile antennas
to impoverished communities,
schools and small businesses in
developing countries.
With support from other investors such as Qualcomm
Inc., Airbus SE and British billionaire Richard Branson, OneWeb appears to be the furthest along among a group of
high-profile projects aiming to
launch swarms of hundreds—
or even thousands—of satellites at altitudes substantially
below those currently used for
the largest, most advanced
commercial communications
spacecraft. Boeing Co. and
Elon Musk’s Space Exploration Technologies Corp., separately backing two proposed
Please see ONEWEB page B2
The National Football League’s pact is valued at more than $2 billion. A football virtual-reality zone at a wireless store in California.
n-
Verizon Bets on Yahoo in NFL Deal
no
BY JOE FLINT
Verizon Communications
Inc. has struck a more than $2
billion deal to show NFL football games on the company’s
mobile network as well
as its Yahoo, Yahoo Sports
and go90 mobile platforms.
Verizon will make national
games on Monday, Thursday
and Sunday nights—in addition to the playoffs and Sunday afternoon games from a
user’s home market—available
on its apps for smartphones
regardless of a customer’s mobile carrier, company and NFL
officials said. The national
TAX REPORT | By Laura Saunders
Late Tax Plan Can Spell
Trouble for Paychecks
The largest
payroll group
in America is
raising a big
concern about
the new tax
plan: There simply isn’t
enough time to figure out
withholding for 2018.
In a letter sent Friday, the
American Payroll Association, or APA, issued a warning to lawmakers in both the
House of Representatives
and Senate working on a final tax bill. The APA’s 21,000
members are “starting to
panic, on behalf of themselves and millions of em-
$500M
2019 and expanding virtually
around the globe by the end of
2020, according to Mr. Wyler.
During a weekend interview,
he also said deployment of
roughly 900 second-generation, higher-orbiting satellites
by the mid-2020s—intended
to create the first such largescale, hybrid constellation in
orbit—is projected to increase
speeds roughly fivefold to 2.5
gigabits per second.
In October, Mr. Wyler told
the Senate Commerce Committee that OneWeb’s network portends “a brighter future for the
nearly half of Americans with
substandard internet connections, primarily in rural areas.”
His ultimate goal is to “fully
bridge the global digital divide,”
he told the panel, by bringing
CASEY RODGERS/INVISION FOR VERIZON WIRELESS/ASSOCIATED PRESS
BY JOE FLINT
Comcast Corp. said it is no
longer pursuing an acquisition
of several key media and entertainment assets from 21st
Century Fox, leaving Rupert
Murdoch’s media empire in position to finalize a deal with
Walt Disney Co.
The Philadelphia-based cable and programming giant
had approached 21st Century
Fox about assets that included
its international properties,
movie and television studios
and some U.S. cable networks,
The Wall Street Journal had
previously reported, citing
people familiar with the matter.
“When a set of assets like
21st Century Fox’s becomes
available, it’s our responsibility to evaluate if there’s a strategic fit that could benefit our
company and our shareholders,” Comcast said in a statement. “That’s what we tried to
do and we are no longer engaged in the review of those
assets. We never got the level
of engagement needed to make
a definitive offer.”
Meanwhile, Disney’s talks to
acquire assets from 21st Century Fox continue to progress,
and a deal could be announced
as soon as this week, people
familiar with the matter said.
Wall Street Journal parent
company News Corp and 21st
Century Fox share common
ownership.
Besides its Sky and Star
Please see FOX page B2
said, agreed in principle on the
cash infusion during recent discussions, with the caveat that
SoftBank’s stake in OneWeb
would remain less than 50%.
Work on OneWeb’s previ-
ployees” about the “herculean task” that lawmakers
are poised to hand up to 155
million workers, and the
companies that employ
them.
Congress could pass a bill
by the end of December.
Even so, many provisions
would take effect Jan. 1,
2018. That would leave just a
few days for workers and
their employers to figure out
how to adjust take-home pay
to reflect the new rules.
“People know when their
paycheck goes down by a
penny. We’re going to have
Please see TAX page B10
games will also be available on
tablets, but not Sunday afternoon games.
Terms of the deal weren’t
disclosed. According to people
familiar with the pact, the
agreement runs for five
years, and Verizon’s annual
rights and sponsorship fee to
the National Football League
will increase from its current
$250 million to more than
$450 million.
Unlike its previous agreements with the NFL, Verizon will no longer have the exclusive
mobile
rights
to distribute national and inmarket games to its wireless
INSIDE
customers. Games will continue to be available via the
NFL’s mobile app. The partnership starts in January with the
postseason, when games, including the Super Bowl, will
be expanded to Verizon-owned
platforms such as Yahoo and
Yahoo Sports.
Verizon was willing to give
up exclusive mobile rights in
return for NFL content for its
other platforms. In its previous deal, exclusivity was
viewed as crucial for Verizon
to attract new wireless customers and keeping existing
ones. Now the focus is on
building its other plat-
RETAIL, B3
PIPELINE
SHUTDOWN
DRIVES UP OIL
ENERGY, B11
0%
forms, particularly since Verizon bought Yahoo earlier this
year for $4.5 billion.
“We want to be the first
screen for live sports,” said
Brian Angiolet, Verizon’s senior vice president and global
chief media and content officer, who called the new deal a
“game-changer” that would elevate its media platforms.
Games will be free to
watch, and will appear with
advertisements.
Verizon will continue to be
aggressive in its pursuit of
sports for its platforms, Mr.
Angiolet said.
Please see NFL page B2
20
40
Entertainment
Social
Networking
Web Browsing
Communications
Tunneling*
Other
*A type
of secure
movement
of data
Source: Sandvine
THE WALL STREET JOURNAL.
FCC Vote
Promises
To Reprice
The Net
BY JOHN D. MCKINNON
AND RYAN KNUTSON
WASHINGTON—With the
rules governing internet services set to be rolled back this
week, service providers and
their detractors are envisioning new models that could
translate into a wider range of
fees—both lower and higher.
The current rules, expected
to be all but eliminated by the
Federal Communications Commission, require that internetservice providers treat all traffic on their networks equally, a
concept known as net neutrality. The FCC’s vote, scheduled
for Thursday, has far-reaching
implications for the way consumers experience the internet, how they pay for it and,
potentially, which companies
will dominate it.
One example of how things
could work is the mobile wireless market, where some providers already have used pricing tactics to favor certain
websites and services over
others.
The 2015 Obama-era rules
didn’t explicitly prohibit these
tactics, which generally allow
customers to access certain
websites without having it
count against their monthly
data cap. Wireless carriers,
which often subject their users
to strict data limits, were aggressive in experimenting with
such plans, also known as
“zero rating.”
Deals began emerging several years ago for inexpensive
plans that offer unlimited
high-speed access to popular
services such as Facebook or
Twitter, but limited or even rePlease see NET page B2
Bitcoin Soars as Futures Start
BY ALEXANDER OSIPOVICH
AND GUNJAN BANERJI
MATTEL GIRDS
FOR BATTLE
THIS SEASON
Types of web traffic most
accessed during peak periods for
mobile devices by percentage.
ly
.
BY ANDY PASZTOR
AND MAYUMI NEGISHI
would boost SoftBank’s total
investment in the project to
about $1.5 billion, even as
Greg Wyler, OneWeb’s founder
and executive chairman, disclosed over the weekend that
his company already is designing and seeking suppliers for a
more powerful new generation
of satellites. He said those
eventually are slated to deliver
ultra-high-speed connectivity,
including across rural or developing regions, approximately as fast as typical fiberoptic networks.
The precise size and structure of SoftBank’s additional investment could change, said the
person familiar with the details
and others close to the talks.
But Mr. Wyler and SoftBank
founder Masayoshi Son, they
Traffic Lanes
co Fo
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er rs
ci on
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e
on
SoftBank to increase
its backing for OneWeb,
which aims for faster
internet connectivity
See more at WSJMarkets.com
Bullish bitcoin traders overpowered bearish ones on Monday, as the much-heralded
launch of bitcoin futures further fueled exuberance for the
nine-year-old digital currency.
Bitcoin futures expiring in
January settled at $18,545 on
Monday, up 24% from the first
trade value of $15,000, recorded when Chicago-based
exchange operator Cboe
Global Markets Inc. booted up
the new market at 6 p.m. ET
on Sunday evening.
In the lead-up to the debut
of bitcoin futures, traders said
that futures contracts would
help reduce the volatility of
bitcoin by drawing in both
bullish and bearish players.
With futures, “long” traders
bet on a price increase while
“short” traders bet on a fall in
the price of bitcoin.
But in fact, the rollout of
Cboe’s futures actually sparked
intense volatility and appeared
to pull the price of bitcoin itself higher. The digital currency was trading at $17,135.29
when the first day of futures
trading ended at 4:15 p.m. ET
on Monday, compared with
$14,605.91 just before trading
in futures began.
By design, every long bet in
futures has an offsetting short
bet, meaning the market
doesn’t function unless there
are both. If long traders have
more conviction and bid more
confidently than the shorts,
that leads the price to rise.
Bitcoin longs were more as-
sertive than shorts on the new
contract’s first day, said Bill
Baruch, president of Blue Line
Futures, a Chicago-based futures brokerage.
“I don’t think anyone wants
to go in and fight the trend,”
Mr. Baruch said. “We’re in the
enthusiasm phase now."
It was unclear why the futures were trading at a premium to the price of bitcoin itself—more than $1,400 higher
than the CoinDesk price when
the market closed. In mature
futures markets, the futures
tend to track the underlying
“spot” price more closely.
Still, trading was too thin
on the first day of trading to
Please see FUTURES page B4
Bitcoin trading overwhelms
exchanges .................................. B4
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 | Tuesday, December 12, 2017
* ***
INDEX TO BUSINESSES
B
Batali & Bastianich
Hospitality Group.....B6
Bitfinex ....................... B4
bitFlyer........................B4
Blackstone Group ....... B6
Bob Quinn ................... B2
Boeing....................B1,B4
BP..............................B11
Broadcom .................. B12
C
Carlyle Group............B12
Cboe Global Markets
............................... B1,B4
CBS..............................B2
Centennial Resource
Development...........B12
Citigroup....................B12
Cobalt 27...................B10
Coinbase......................B4
Comcast.................B1,B2
Conduent.....................B2
Corning........................B4
D
Daewoo Shipbuilding &
Marine Engineering..B5
Daimler........................A8
E-F
Elliott Management . B12
Exiger ........................ B10
Fortress Investment
Group.......................B12
Freedom Acquisition.B12
FS Investment............B6
Passport Capital....... B10
Qualcomm............B1,B12
Quantitative Investment
Management ............ A1
G
R
Gawker Media.............B5
Gemalto.......................B4
GLG............................B12
Global X Funds..........B10
Goodyear Tire & Rubber
.....................................B2
Riverstone Energy....B12
Royal Dutch Shell.....B11
H
Hewlett Packard
Enterprise.................A6
HSBC Holdings..B10,B11
Hyundai Heavy
Industries..................B5
I-J
Ineos..........................B11
J.C. Penney..................B3
K
KKR..............................B6
Kohl's...........................B3
M
Macy's.........................B3
Man Group ................ B12
Mattel..........................B3
Moelis..........................B5
N-O
National Football
League.......................B1
Netflix.........................B2
News Corp...................B1
Nvidia........................B11
NXP Semiconductors
...................................B12
OneWeb.......................B1
P-Q
Pala Investments......B10
S
Samsung Electronics..B5
Samsung Heavy
Industries..................B5
Shazam Entertainment
.....................................B4
SoftBank Group..........B1
Space Exploration
Technologies.............B1
Spotify.........................B4
Sprint .......................... B2
Standard Chartered..B10
Starbucks....................A6
Steinhoff International
Holdings....................B5
T
Tencent Holdings......B11
Teza Capital
Management ............ A1
3M ............................... B4
T-Mobile US................B2
TPG............................B12
21st Century Fox........B1
U-V
United Parcel Service.A6
Verizon Communications
............................... B1,B2
VISA .......................... B12
Voleon Group..............A1
Vox Media...................B6
W-X
Walt Disney................B1
Xerox ........................... B2
INDEX TO PEOPLE
A
Einhorn, David .......... B12
Alderson, Sandy........B12
Angiolet, Brian............B1
Firestone, Jaffrey.......B2
Q-R
G
Qiao, Helen ............... B12
Read, Randolph...........B2
Baruch, Bill ................. B1
Besh, John .................. B6
Bhatia, Ashok...........B12
Branson, Richard ........ B1
Brenner, Menachem ... B6
Breton, Thierry ........... B4
Buchta, Scott............B11
Burbank, John...........B10
Butler, Jonathan.......B11
Gill, Steven ............... B10
Goodell, Roger ............ B2
Guillemette, Yvan.....B10
Gulliver, Stuart.........B10
I-J
Icahn, Carl...................B2
Izhakian, Yehuda.........B6
Jacobs, Jay................B10
C
K-L
Cherkasky, Michael...B10
Christodoro, JonathanB2
Clayton, Jay ................ B4
Cozza, Keith................B2
D-E
Khandpur, Ashish ....... B4
LaForge, John............B10
Lazaridis, George........B5
Lipow, Andy..............B11
Lizza, Ryan..................B6
Daly, Kevin................B12
Del, James .................. B5
Menon, Vasu.............B12
M
$30
25
20
15
Company
splits
10
5
0
2015 2016
2017
Source: FactSet
THE WALL STREET JOURNAL.
pany and the activist. Mr. Icahn
then named his four director
nominees in a securities filing.
Shares of Xerox are up 29%
from its last day of trading before the split, though a big
chunk of that gain came on
the first day of trading as a
separate company. The S&P
500, meanwhile, has risen 19%
this year.
Monday was the company’s
deadline to nominate directors, and Mr. Icahn said he had
sought to extend the date in
discussions with Xerox, which
could have avoided a public
fight, but Xerox wouldn’t extend it. A date has yet to be
announced for Xerox’s annual
shareholder meeting.
Xerox said Monday its
Continued from the prior page
channels in Europe and India
and its Twentieth Century Fox
television and movie studios,
21st Century Fox is also expected to sell several cable
networks including almost two
dozen regional sports channels
and entertainment networks
FX and National Geographic
Channel.
Not for sale are the Fox
News and Fox Business channels, the Fox broadcast network and its local television
stations, which would remain
part of a stand-alone company.
Its national sports channel Fox
Sports 1 also isn’t part of any
deal with Disney, according to
people familiar with the
matter.
Comcast was primarily interested in 21st Century Fox
for its international platforms,
according to people familiar
with the matter, given that the
pay-TV market in the U.S. is
saturated.
In Monday’s statement,
Comcast said it has a “strong
portfolio of businesses” on its
own and will continue its focus
on “driving growth” and creating content for its customers.
It was unclear how regulators would have even received
a combination involving Comcast and 21st Century Fox
assets, particularly in the wake
of the Justice Department’s
lawsuit to try to block AT&T
Inc.’s takeover of Time Warner
Inc., which similarly would
combine distribution and
content.
W-Z
Wyckoff, Jim.............B11
Wyler, Greg.................B1
Zisk, Brian...................B4
neurs bypass usual fundraising
rounds.
Since its official launch in
May with the backing of investors such as Saudi Arabia’s
sovereign-wealth fund, the
fund has invested hundreds of
millions of dollars in companies that SoftBank’s Mr. Son
believes will corner key technologies in a future of smarter,
interconnected, and automated
devices. OneWeb’s satellites
are geared to help serve as the
backbone for those applications, Mr. Son has said.
SoftBank, which has a 40%
stake in OneWeb based on a
prior investment, walked away
from merger talks between its
U.S. wireless carrier Sprint
Corp. and rival T-Mobile US
Inc., unwilling to relinquish
control as the top shareholder
of a spectrum Mr. Son believes
will be valuable as everyday
objects from cars to refrigerators increasingly communicate
with one another.
Mr. Wyler, for his part, has
long advocated the advantages
of combining satellites circling
the earth at different altitudes, arguing such synergies
dramatically increase capacity
and efficiencies. But unlike Mr.
Musk’s concept, he doesn’t favor laser links between satellites on the grounds that such
add-ons unduly increase
weight and complexity.
A spokesman for SpaceX, as
Mr. Musk’s company often is
called, has declined to respond
to questions about details or
progress of the entrepreneur’s
proposed satellite project.
KIM SHIFLETT/PLANET PIX/ZUMA PRESS
Continued from the prior page
The mobile-rights deal
marks a significant increase for the NFL, despite a
second straight season of
declining
ratings,
showing that content distributors
still view professional football
as a must-have property.
Xerox share price since Carl Icahn
announced he had accumulated a
7.1% stake in Nov. 2015.
agreement with Mr. Icahn was
terminated as part of Jonathan Christodoro’s resignation
from the board.
Mr. Christodoro, a longtime
employee and director nominee of Mr. Icahn who left the
Icahn firm earlier this year,
had been named to Xerox’s
governance and finance committees, but the agreement
barred Mr. Icahn from fighting
publicly with the company
while he was on the board.
The new slate Mr. Icahn is
introducing would include Mr.
Christodoro and Keith Cozza,
both of whom have previously
served on boards representing
Mr. Icahn’s interests, according to a securities filing. The
other two on the slate are
Prodigy Pictures Inc. Chief Executive Jaffrey Firestone and
Nevada Strategic Credit Investments CEO Randolph
Read.
Mr. Icahn’s firm has a 9.7%
stake in Xerox, and before his
resignation, Mr. Christodoro
was the only Icahn affiliate on
its board. Mr. Icahn has a 9.4%
stake in Conduent, and three
Icahn affiliates still sit on that
firm’s board.
Since the company split in
two, Xerox focuses on its legacy copier business, and Conduent is made up of a group of
services businesses that legacy
Xerox acquired in 2010.
Mr. Icahn has long sought
to shake up management
teams at companies, and to
have a role in selecting their
chief executives.
V
A model of a OneWeb satellite was displayed this past March.
NFL
Activist investor Carl Icahn
plans to launch a new board
fight with Xerox Corp. in an
attempt to find a new chief executive, his second offensive
against the copy-machine
maker in roughly two years.
“The CEO is the most important person in the company. We believe Xerox still
has potential, but it will go the
way of Kodak if there aren’t
major changes,” Mr. Icahn said
in an interview. “Times have
changed but not the old guard
that controls the board.”
Jeff Jacobson has been
chief executive of Xerox since
the beginning of this year,
when the legacy Xerox split
into two companies: the current iteration of Xerox and
Conduent Inc.
He has been with Xerox
since 2012 and was previously
president of its technology
business.
Xerox Chairman Robert
Keegan was a longtime executive at Kodak, before becoming CEO and chairman of
Goodyear Tire & Rubber Co.
Xerox didn’t comment on
Mr. Icahn’s criticism, but it said
in a statement earlier Monday
that it was “ahead of plan” on
its strategic transformation and
reiterated its financial goals.
The path for a new fight
was opened when Mr. Icahn’s
representative on the Xerox
board resigned, terminating an
agreement between the com-
Rough Riding
Vulanovic, Milos ....... B12
no
Continued from the prior page
systems, are still seeking final
regulatory approvals related to
spectrum and satellite designs,
according to industry officials.
By contrast, Mr. Wyler’s
project has final approval from
the Federal Communications
Commission to turn on domestic service within two years,
barring major technical or
manufacturing problems. The
approval also is contingent on
other conditions.
According to Mr. Wyler, his
team also is “trying to lead
the charge” in reducing orbital
debris stemming from potential satellite collisions or failures. OneWeb’s satellites,
weighing hundreds of pounds
and expected to cost less than
$1 million apiece, are designed
to be “as high or higher in
quality and reliability” than
much larger models costing
$150 million or more, he said.
An early financial backer of
some of the largest internet
companies on both sides of
the Pacific, SoftBank continues
to seek synergies with mobilephone businesses and the
portfolio of assorted technology companies it has assembled over the years. SoftBank
also has created the world’s
biggest tech investment fund,
worth nearly $100 billion. The
Vision Fund has been roiling
the venture community with
its sheer scale, lifting valuations and helping entrepre-
S
Sanders, Steven ......... B4
Sclater-Booth, Stuart
...................................B12
See, Garrett................B4
Sen, Anik...................B11
Sirimanne, Erika.........B5
Son, Masayoshi .......... B1
Soss, Neal.................B10
Spiers, Elizabeth.........B5
n-
ONEWEB
Murdoch, Rupert.........B1
Musk, Elon..................B1
BY DAVID BENOIT
AND ALLISON PRANG
co Fo
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B
F
Icahn Is Taking on Xerox FOX
“We have been confident in
the value of our content,” said
NFL Commissioner Roger
Goodell.
Mr. Angiolet said the NFL
“remains the marquee sport”
for reaching a mass audience.
While viewing on traditional
platforms is slowing, “the
viewership on mobile continues to grow,” he said. Verizon
also receives commercial inventory to sell on its plat-
LUCY NICHOLSON/REUTERS
A
Airbus .................... A8,B1
AlixPartners................B5
Altura Mining............B10
Amazon.com ............... B2
Apple.............B4,B11,B12
AQR Capital
Management .......... A12
Atos.............................B4
AT&T............................B2
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.
THE WALL STREET JOURNAL.
The FCC is expected to all but eliminate rules that require internet service providers to treat all traffic on their networks equally.
NET
Continued from the prior page
stricted access to the rest of
the internet.
T-Mobile US Inc. announced
in late 2013 that its GoSmart
Mobile brand had “become the
first wireless provider…to offer
free access to Facebook and
Facebook Messenger for all of
its wireless customers, even
those without monthly data service.” The GoSmart Mobile
plans started at $25 a month for
“unlimited talk” with no other
data service. T-Mobile has since
transferred the GoSmart brand
to another wireless firm.
In 2014, Virgin Mobile USA,
a unit of Sprint Corp., offered
a wireless plan that cost $12,
but users were only allowed to
access one website: either
Facebook, Twitter, Instagram
or Pinterest. If they wanted all
four, it was $10 more a month.
Another $5 and they could access any online music streaming service.
Big internet providers also
used zero-rating plans to favor
their own content. AT&T Inc.
gave paying customers unlimited usage of its own online
video service DirecTV Now,
while other video sites
counted against monthly data
caps. Verizon Communications Inc. did the same for its
mobile video app, called go90.
When the zero-rating plans
were first offered up, they
drew criticism from some netneutrality advocates. The practice became so widespread
that Obama administration
regulators, in one of their final
actions, sought to declare several plans illegal, including
those offered by AT&T and Verizon.
Critics said the plans let corporations create powerful incentives to shape what consumers accessed on the web.
Supporters said it made accessing the web more affordable,
even if it was just to a slice.
The plans “have enhanced
competition in the wireless
marketplace,” FCC Chairman
Ajit Pai said in winding down
the FCC’s investigation into
the practice earlier this year.
Mr. Pai contends the rollback of net-neutrality rules
will return the internet to the
light-touch regulation that
helped it flourish. He says the
FCC under his plan will require
broadband providers to disclose their practices in detail,
including any services they are
blocking, throttling (meaning
to degrade the site’s quality)
or prioritizing.
The FCC and its sister
agency, the Federal Trade
Commission, announced a
memorandum of understanding Monday that puts the FCC
in charge of overseeing those
disclosures. The FTC—which
was basically shut out of regulating internet providers by
the Obama-era rules—will return to its traditional role of
policing privacy practices, as
well as any unfair or deceptive
trade practices or anticompetitive behavior.
Several of the big internet
service providers have pushed
in particular for eliminating
the rule on paid prioritization,
or fast lanes, saying an outright ban is unjust and could
hinder some pro-consumer
services.
AT&T executives have said
paid prioritization could be
useful for high-definition video
teleconferencing and multiplayer online gaming, among
other possibilities. Comcast
Corp. said paid prioritization
could be used “to issue severe
weather and Homeland Security warnings and for emergency services purposes, as
well as…systems for the hearing-impaired, telemedicine,
and autonomous vehicles.”
—Drew FitzGerald
contributed to this article.
forms as part of the contract
and will remain an official
sponsor of the NFL.
Verizon’s properties aren’t
the only place that cord-cutters will be able to turn for
NFL content. The NFL has
broadened the number of
platforms where its games are
available, in an effort to keep
up with changing viewing habits among viewers, particularly
those in the 18- to 34-year-old
demographic. This season,
Amazon.com Inc. agreed to
pay $50 million to the NFL for
rights to stream 10 Thursday night games to its Amazon
Prime members.
“It was important to us to
make our games more accessible to our fans,” Mr. Goodell said. “Verizon understood
we needed to go cross-carrier.”
The next rights contract
that comes up is the Thursday night package, which is
currently shared by Comcast
Corp.’s NBC, CBS Corp.’s CBS
and the NFL-owned NFL Network, along with the Amazon
streaming deal. There have
been calls for eliminating, or
at least reducing, the number
of Thursday games, but the
NFL hasn’t indicated if it
would reduce the package. The
current pact expires after this
season.
The Verizon renewal comes
just days after Mr. Goodell
signed an extension to remain
as commissioner of the league
through the 2023 season. That
means Mr. Goodell will oversee negotiations of the major
broadcast and cable rights
deals that pay the league an
average of $5 billion annually and are set to expire after
the 2021 season.
ISPs Vow Openness;
Critics See Harm
Internet providers say they
intend to adhere to net neutrality’s core principle of openness. “We will not block websites, we will not throttle or
degrade internet traffic based
on content, and we will not unfairly discriminate in our treatment of internet traffic,” AT&T
senior executive vice president
Bob Quinn wrote in a November blog post.
Yet some experts believe
practices will become even
more commonplace and more
elaborate. Lifting the rules,
they say, could encourage big
telecommunications providers
to prioritize specific sites and
services, potentially warping
the open internet into something more like cable TV,
where consumers must pay for
access to bundles of content.
Under the new regime, internet providers would be allowed to prioritize their own or
other companies’ services by
delivering them at higher
speeds. Net-neutrality advocates worry that if content
companies start paying for
faster delivery, they will pass
those costs onto consumers.
That means that AT&T
couldn’t only exempt DirecTV
Now from monthly data caps,
but it could also ensure DirecTV Now always loads faster
and has a clearer picture quality than a rival like Netflix—unless those rivals pay for faster
delivery, too.
The net-neutrality rules
never applied to internet service offered by coffee shops
and many other businesses.
Ending the rules could encourage more businesses to seek
online-service deals that give a
boost to particular content.
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.
Tuesday, December 12, 2017 | B3
BUSINESS NEWS
$41.24
Final price listed for a $79.99
Kohl’s item after markdowns
no
n-
“You shouldn’t need a Ph.D.
in math to figure out our
prices,” Greg Revelle, Kohl’s
chief marketing officer, told
reporters last month during a
preview of its holiday plans.
Kohl’s has been testing a
“Your Price” feature that
shows the final cost after all
discounts, according to Mr.
Revelle. For example, a Disney
Princess Palace, regularly
priced at $79.99, was on sale
on Kohl’s website earlier this
month for $54.99 and eligible
for an extra 25% off. The “Your
Price” was $41.24.
Like Kohl’s, Penney this
year started showing online
shoppers the sale price, after
all discounts, on the product
page and increasingly has
been advertising sales with final dollar amounts, rather
than percentage discounts.
The retailer also has been
A Barbie exhibition in Paris in 2016. Mattel, the maker of Barbie dolls and other toys, said its sales challenges are growing.
Mattel’s Troubles Increase
Toy maker expects
to take write-down
on weak holiday sales;
debt rating is lowered
BY PAUL ZIOBRO
Mattel Inc. warned of another gloomy holiday season
as key brands struggle and toy
retailers tighten the amount of
inventory they are willing to
buy upfront.
The toy maker, whose biggest brands include Barbie,
Fisher-Price and Hot Wheels,
said in a securities filing Monday that it will likely have to
write down inventory and
spend heavily to offer discounts as a result of gross
sales that are now expected to
decline by at least a mid- to
high-single-digit percentage
range versus last year, when
they fell 3%.
The revised outlook, just
two weeks before Christmas,
is the latest sign of the worsening situation inside Mattel,
which has suffered from years
of declining sales, loss of market share and leadership
changes. On Monday, all three
major credit-rating firms
downgraded the company after it filed to raise an additional $1 billion in debt.
The El Segundo, Calif., company this year turned to its
third chief executive in as
many years, former Google executive Margo Georgiadis, who
has started a more dramatic
overhaul inside the organization than past turnaround attempts. Ms. Georgiadis is
seeking to drop an unspecified
number of smaller, underperforming brands, outsource
manufacturing of some toys
and implement zero-based
budgeting to keep costs low.
Mattel shares rose 2.2%, or
33 cents, to $15.37 on Monday.
The stock is off 44% this year.
The Wall Street Journal reported last month that Hasbro
Inc. made a takeover offer for
Mattel, a potential tie-up of
the two biggest U.S. toy makers that has long been discussed by investors and analysts. The discussions followed
Toys “R” Us Inc.’s decision in
September to file for bankruptcy protection.
On Monday, S&P Global
Ratings, Moody’s and Fitch
Ratings, downgraded Mattel’s
debt, citing the company’s
weak financial performance
and plans to sell $1 billion in
high-yield unsecured notes
that mature in 2025. All three
firms now rate Mattel below
investment grade.
Because Mattel’s shrinking
sales will pinch its cash flow
in the critical holiday quarter,
the new debt would fund operations and help repay a $250
million note that matures in
2018. Mattel suspended its
dividend earlier this year to
help free some of the company’s cash flow.
While revenue is expected
to decline about 8% this year,
Mattel’s earnings before interest, taxes, depreciation and
amortization, or Ebitda, are
expected to drop by about half
from roughly $800 million last
year, according to Fitch.
“The company has also
been challenged by the phenomenon of children—in particular, girls—outgrowing traditional toys at a younger age,
with greater interest in consumer electronics, beauty,
sports, and social media,”
Fitch said in a news release.
Mattel has other problems
affecting operations, too.
A new distribution center in
Pennsylvania, meant to serve
the eastern U.S., has been having startup issues since opening this summer. The facility
has been operating below its
expected capacity, requiring
Mattel to tap into two existing
distribution centers in California and Texas to fulfill orders,
adding costs, a person familiar
with the matter said.
ly
.
Retailers have a gift for discount-obsessed holiday shoppers: simpler pricing.
Macy’s Inc. is scaling back
overlapping promotions. A
host of other chains, such as
Kohl’s Corp. and J.C. Penney
Co., are making price reductions easier to understand.
Some stores are even distributing cards that convert the
discounts for shoppers.
The moves are in reaction
to a surge in discounts in recent years, often with promotions layered on top of one another. That layering has
confused shoppers and made
them numb to the deals, according to the retailers.
posting sale-conversion charts,
intended to help shoppers figure out prices. At its New York
City store, charts on top of
racks of women’s clothing
listed a range of regular
prices, from $12 to $200, and
their corresponding sale price.
For instance, a blouse that was
originally priced at $37 was
listed at $14.80 after a 60%
discount. Taxes are usually
calculated at checkout and
vary by store.
Christine Dunne of the
Bronx, N.Y., said she noticed
the changes. “It makes shopping so much easier,” said the
25-year-old. “In the past, I’d
get to the register and realize
the price I’d calculated in my
head was wrong.”
Not all retailers have simplified their pricing, and marketing experts say that is by
design. “Multiple mental deductions based on promotions
can result in consumers perceiving that their costs are
lower than they actually are,
which can increase spending,”
said Cynthia Cryder, an associate professor of marketing at
Washington University.
The number of stackable
promotions on coupon site RetailMeNot more than doubled
from Nov. 24 through Nov. 28,
compared with the same period from Black Friday
through Cyber Monday a year
ago, according to the site.
Retailers also have gotten
into trouble when they have
tried to scale back promotions.
For example, Penney several
years ago attempted a switch
to everyday low prices, a move
that precipitated a disastrous
drop in sales. The company
later reintroduced discounts
and promotions.
“People don’t judge prices
absolutely; they judge them
relative to some comparison,”
said Barbara Kahn, a marketing professor at the University
of Pennsylvania’s Wharton
School.
co Fo
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BY SUZANNE KAPNER
MUSTAFA YALCIN/ANADOLU AGENCY/GETTY IMAGES
Retailers Simplify
Prices by Doing
Markdown Math
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 | Tuesday, December 12, 2017
THE WALL STREET JOURNAL.
* *
TECHNOLOGY
WSJ.com/Tech
Bitcoin Trading Overwhelms Exchanges
cent days has been the rally
around the start of futures
trading on Cboe Global Markets over the weekend. The
availability of futures lets investors take leveraged or short
bets on the currency, and
marks its entry into the mainstream financial system. The
Chicago-based exchange re-
ported outages to its website
Sunday due to heavy traffic.
BitFlyer, Japan’s biggest
cryptocurrency exchange, said
Sunday that some of its users
were unable to log on as a result of “erroneous deposits
made to a portion of users accounts,” an issue which it has
now resolved. The company
didn’t respond to requests for
comment.
Coinbase, the cryptocurrency brokerage which shot to
the second-most-downloaded
app in Apple’s App Store for
the U.S. on Thursday, said it
was experiencing “significant
backlog” in processing some
bitcoin withdrawals.
“Despite the sizable and ongoing increases in our technical infrastructure and engineering staff, we wanted to
remind customers that access
to Coinbase services may become degraded or unavailable
during times of significant volatility or volume,” its cofounder and chief executive
Brian Armstrong wrote in a
blog post on Friday.
Bitfinex said twice this
month it came under so-called
distributed denial-of-service
attacks, in which attackers try
to overwhelm a website with
traffic. The issue has since
been resolved. The company
didn’t respond to requests for
comment.
by the WSJ Market Data
Group—still a tiny market
compared with the billions of
dollars worth of daily trading
volume in bitcoin itself.
“People are cautiously trading in a very small and limited
capacity, not really taking huge
bets,” said Garrett See, chief
executive of DV Chain, a proprietary trading firm focused
on cryptocurrencies.
The digital currency has
posted an extraordinary price
surge, running up more than
1,500% since the start of the
year. Part of that rally has
been fueled by how difficult it
has been to short bitcoin, traders have said.
Shorting bitcoin futures can
be potentially ruinous for a
trader because it can lead to
unlimited losses if bitcoin
keeps rocketing higher.
That was the reasoning of a
major online brokerage, Interactive Brokers Group Inc.,
when it announced last week
that it would provide its customers with access to Cboe’s
bitcoin futures—but only if
they were going long.
That decision might have
contributed to the early price
run-up in bitcoin futures, some
market participants said.
Interactive Brokers disputed
that its decision led to the
120 megabytes
100
80
BY GREGOR STUART HUNTER
FUTURES
Continued from page B1
draw firm conclusions about
how the new futures market
will play out, traders said.
On their first day of trading,
3,969 of Cboe’s main January
futures contracts had changed
hands, worth about $68 million, according to calculations
40
20
0
2016
’17
THE WALL STREET JOURNAL.
Source: Blockchain.info
WASHINGTON—Wall
Street’s top regulator on Monday raised alarms about the
money flooding into bitcoin
trading and other cryptocurrency markets, warning the
red-hot corner of less-regulated
finance is burning with risk for
retail investors.
Securities and Exchange
Commission Chairman Jay
Clayton issued a statement
spelling out his concerns about
bitcoin, which the agency
doesn’t regulate, and other
deals that piggyback off excitement about the cryptocurrency.
The SEC has come down particularly hard on initial coin offerings, in which startups raise
money—sometimes by soliciting bitcoin—from investors in
exchange for giving them a
new digital coin that may be
traded or grow in value.
“The world’s social media
platforms and financial markets are abuzz about cryptocurrencies and initial coin offerings,” Mr. Clayton said. “There
are tales of fortunes made and
dreamed to be made. We are
hearing the familiar refrain,
‘this time is different.’”
Mr. Clayton’s alert came on
the same day the SEC intervened to halt a $15 million initial coin offering that it said
should have been conducted
under the regulator’s longstanding rules for securities
sales.
A person familiar with Mr.
Clayton’s thinking said he
voiced his views now because
the run-up in bitcoin’s price has
captivated retail investors and
because the commission’s prior
statements on bitcoin and
ICOs have generated substantial interest.
—Dave Michaels
price surge. Big trading firms
have the opportunity to go
short if bitcoin futures surge
too high, said Steven Sanders,
an executive vice president at
the firm. “If it was really out
of whack, they’d take advantage and dive in until it fell in
line,” Mr. Sanders said.
Many large futures-clearing
firms, including JPMorgan
Chase & Co. and Bank of America Merrill Lynch, told their
customers they would sit out
Sunday’s launch of bitcoin futures, The Wall Street Journal
reported last week.
The absence of large clearing firms likely damped volumes on the first day of trading, traders said. Such firms
can suffer losses if their customers’ bets go bad. That
made them hesitant about
clearing bitcoin futures, given
the volatility of bitcoin.
co Fo
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Some of the world’s biggest
cryptocurrency
exchanges
have experienced disruptions
in recent days as interest in
bitcoin surged in the weeks
leading up to Sunday’s launch
of bitcoin futures.
Bitcoin exchanges and brokerages including bitFlyer,
Bitfinex and Coinbase have all
reported service outages in the
past week. The digital currency
has increased in value by more
than 16 times since the start of
the year and lured more customers into the market.
The latest problems at bitcoin exchanges followed similar outages when the digital
currency
crossed
above
$10,000 late last month. The
impetus for disruptions in re-
60
SEC Chairman
Warns on Rush to
Cryptocurrencies
ly
.
Disruptions follow a
A Bit of a Crunch
jump in the value of the Aggregated size of
currency and the launch bitcoin transactions
waiting to be confirmed
of futures trading
BUSINESS WATCH
ADVERTISEMENT
Legal Notices
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Apple Inc. said it has acquired Shazam Entertainment
Ltd., giving it ownership of one
of the popular song-recognition
apps at a time the iPhone maker
is looking to boost its musicsubscription service. Financial
terms of the deal weren’t disclosed.
Apple said Monday it has “exciting plans” for Shazam but declined to disclose more. Shazam
said Apple would enable it to
“continue innovating.”
The acquisition gives Apple
ownership of an app that helps
users identify unfamiliar songs.
Users are often directed to listen to those songs at Apple Music or Spotify, helping those services possibly reach new
subscribers. Such referrals could
help Apple boost the number of
subscribers to its streaming-music service from its current 30
million. Spotify AB says its service has 60 million paid subscribers.
Shazam, which made its debut as an app in 2008, also
gives Apple access to extensive
data and insight on people’s musical interests.
“If you have the direct integration of Shazam as part of
Apple, and people find out what
a song is [by] using Apple, then
they go buy it using Apple. It
creates a full ecosystem,” said
Brian Zisk, the executive producer of the SF MusicTech Summit, an annual conference.
—Tripp Mickle
Apple’s purchase of Shazam gives it access to wide data and insight on users’ musical interests.
BOEING
Dividend Rises 20%
To $1.71 a Share
Boeing Co. boosted its quarterly dividend to $1.71 a share, a
20% increase and above the
Wall Street consensus for a
raise.
Boeing, which in October
gave a bullish outlook citing demand for its single-aisle jets,
also replaced its share-repurchase program with an $18 billion authorization, targeting buybacks over the next 24 to 30
months.
Boeing had $8.57 billion in
cash as of Sept. 30, the most
recent figures released.
Shares rose 1.4% to $286.98
in extended trading Monday.
—Maria Armental
ATOS
French IT Company
Bids for Gemalto
French information-technology
services firm Atos SA is making
an unsolicited bid to buy smartcard maker Gemalto NV for €4.3
billion ($5.1 billion), part of a
broader wave of deals in the payment space as rivals join forces
to cut costs.
Atos, which offers services
such as infrastructure and cloud
Corning to Buy 3M Optical Fiber, Copper Cable Unit
applications for businesses, said
Monday that it had made a
friendly all-cash offer for Gemalto two weeks ago. The offer
was for €46 a share, representing a premium of 36% over Gemalto shares at Monday’s close
and 42% over the company’s
one-month weighted average
price, Atos said.
Thierry Breton, Atos’s chief
executive, said in a conference
call Monday that he hadn’t received a response from Gemalto
on the bid. He said he went public with the offer because of recent gyrations in Gemalto’s
shares. An Atos spokesman declined to say whether there have
been any negotiations since the
offer was made. A Gemalto
spokeswoman didn’t respond to
requests for comment.
Atos’s bid comes comes as
firms in the payments space join
forces to cut costs, develop new
products and add customers as
greater regulatory scrutiny and
rising competition from technology start-ups squeeze fees.
—Sam Schechner
FARM EQUIPMENT
Sales Increase
At Cooler Pace
XINHUA/ZUMA PRESS
BANKRUPTCIES
iPhone Maker
Acquires Shazam
SIMON DAWSON/BLOOMBERG NEWS
To advertise: 800-366-3975 or WSJ.com/classifieds
Corning Inc. said Monday it
agreed to buy almost all of 3M
Co.’s optical fiber and copper cable business for $900 million.
3M’s communications markets
division, based in Austin, Texas,
generates about $400 million a
year in sales, the company said.
About 500 3M employees will
join Corning as part of the deal,
which is expected to be com-
pleted in 2018.
[Above is a photo from the
Corning Museum of Glass in
New York, dedicated to the art,
history and science of glass.]
“After completing a thorough
strategic review, we believe that
this business will be well positioned with Corning,” said Ashish
Khandpur, 3M’s executive vice
president for its electronics and
energy business group.
The deal will add to Corning’s
2019 per-share earnings by between 7 cents and 9 cents, it
said. 3M expects to realize a
gain of 40 cents a share from
the divestiture. Corning plans to
spend between $1 billion and $3
billion on acquisitions as part of
a capital-allocation plan.
—Allison Prang
Retail sales of large farm
tractors and harvesting combines rose at a more moderate
pace in November after months
of big gains against depressed
year-earlier sales volumes.
Sales of high-horsepower, twowheel-drive tractors in the US
and Canada increased 5% from
last November, said the Association of Equipment Manufacturers.
U.S. sales alone were up 3%.
November is typically the
slowest month of the year for
sales of big tractors, says JPMorgan, which expects retail sales to
be up about 10% in 2018. Yearto-date, sales of high-horsepower, two-wheel-drive tractors
are down 6%. Combine sales increased 14% in November against
a weak comparison last year.
—Bob Tita
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.
Tuesday, December 12, 2017 | B5
THE WALL STREET JOURNAL.
BUSINESS NEWS
Samsung Heavy Industries shipyard in Geoje, South Korea. A slump in the offshore-drilling market has taken a toll on the company.
Shipyard Giant CEO Exits
BY COSTAS PARIS
Samsung Heavy Industries
Co., the world’s third-biggest
shipyard by capacity, replaced
its chief executive on Monday
after having warned last week
of heavy losses that wiped
away nearly a third of its market value.
The South Korean company’s president and CEO,
Park Dae-young, resigned and
took responsibility for widely
missing targets for sales and
the trimming of jobs. Its order
book has slumped to roughly
$20 billion this year from $45
billion in 2013.
Samsung Heavy shares fell
29% last week after the company said it expected an operating loss of 490 billion won
no
Steinhoff’s operations, which include this furniture store in Johannesburg, span five continents.
Steinhoff Adds Outside Help
To Fight Financial Problems
BY ALEXANDRA WEXLER
JOHANNESBURG—Steinhoff International Holdings
NV has appointed additional
outside advisers as it battles a
financial crisis that has engulfed the retailer since it disclosed possible accounting irregularities last week.
Shares of Steinhoff, which
owns America’s Mattress Firm
and has operations on five
continents, plunged 82% last
week after the company said
its chief executive had resigned and that it had identified possible accounting problems that could affect some $7
billion in assets.
The warning put a fresh
spotlight on allegations the
company’s management used
off-balance-sheet entities to
hide losses in its operations
and artificially pump up its
valuation. Prosecutors in Oldenburg, Germany, announced a
probe into those allegations in
August.
The situation has humbled
what was a rapidly growing
global furniture and clothing
retailer dubbed “Africa’s
IKEA,” although Steinhoff says
its business continues to operate as normal.
Steinhoff said Monday that
its focus was on stabilizing its
($450 million) this year and a
loss of 240 billion won in
2018.
Analysts were expecting a
profit of 90 billion won for
2017. Its shares fell 1.31% Monday.
The company also said it
needs to raise 1.5 trillion won
in new shares, after issuing 1.1
trillion won in new paper last
year, further diluting the value
of its existing shares.
Tech giant Samsung Electronics Co. is Samsung
Heavy’s biggest holder, with a
16.9% stake.
A 40-year veteran of Samsung Heavy, Mr. Park has been
replaced by another longtime
employee, Joonou Nam. He
will be under pressure to distance the shipyard from the
struggling offshore-drilling industry as it attempts to compete with Hyundai Heavy Industries Co. and Daewoo
Shipbuilding & Marine Engineering, local rivals who are
the two biggest shipyards in
the world, and other yards in
China and Singapore.
“Park fell on his sword,
having failed to diversify Samsung Heavy from offshore
projects and cut costs,” said
finances so it could fund its
operations and that it was
asking for and required the
continued support of its lenders.
It has appointed Moelis &
Co. to support its discussions
with lenders and hired AlixPartners to assist on liquidity
management and operational
measures. The company has
also created a board subcommittee composed of independent nonexecutive directors to
bolster governance.
Shares of Steinhoff jumped
more than 20% in early trading Monday before giving up
some gains to close up 11% in
Frankfurt, where it is listed.
The measures are in addition to an existing investigation by consulting firm PwC
into the allegations of accounting irregularities.
Steinhoff said it can’t comment further on the issue until
it gets feedback from the investigation.
The retailer’s audit committee is working with Deloitte to
facilitate the release of the
company’s audited financial
statements, which were delayed because of the accounting probe.
Steinhoff said it hopes to
provide an update on its operational and financial situation
at an annual lender meeting
on Dec. 19.
The meeting had initially
been scheduled to take place
on Monday.
To bolster its finances
Steinhoff said last week it
plans to extract about €1 billion, or roughly $1.18 billion,
through a refinancing of its
separate Africa-focused retail
business listed in Johannesburg. It also plans to seek an
additional €1 billion through
asset sales.
Last week’s disclosures
have led the South African
government, international investors, lenders and bondholders to try to gauge any exposure to the company.
“The pressure will be on
PwC to complete their investigation as quickly as possible,”
said Erika Sirimanne, head of
home and garden research at
market-research firm Euromonitor
International.
“Steinhoff’s bankers and
shareholders are likely eager
to understand the depth of the
alleged financial irregularity,
including achieving clarity on
Steinhoff’s real earnings and
to what extent financial results need to be restated, if at
all. It is only at this point that
we will know whether or not
Steinhoff faces total collapse.”
ing from high-end ships, such
as natural-gas tankers.
Its expected losses for this
year and next are due to weak
order demand, expected losses
from some contracts and
higher material costs, the
company said. “We expect the
situation to improve in 2019,”
it added.
Samsung Heavy has 3.3 trillion won of debt maturing
within the next 12 months,
compared with 451 billion won
in cash, according to its latest
earnings report. State-run Korea Development Bank is its
main creditor.
Shipyards across the world
are suffering from a decadelong down cycle, marred by an
overcapacity of ships in the
water.
Hyundai Heavy split into
four companies earlier this
year in a painful restructuring
exercise, and Daewoo Shipbuilding has received $6.5 billion in state bailouts since
2015 to stay afloat.
ly
.
Shares of Samsung
Heavy fell 29% last
week after company
issued profit warning
n-
WALDO SWIEGERS/BLOOMBERG NEWS
Former
employees
of
Gawker.com’s defunct publisher are raising money
through a new crowdfunding
campaign in a bid to purchase
the blog out of bankruptcy and
relaunch the website.
The campaign was launched
Monday on the crowdfunding
website Kickstarter and seeks
to raise at least $500,000.
Gawker ceased publication in
August 2016 after losing a lawsuit brought by wrestler Hulk
Hogan.
“This is a testing of the waters,” said James Del, a former
vice president of programming
at Gawker Media LLC who is
organizing the crowdfunding
drive. Gawker’s founding editor, Elizabeth Spiers, is also
advising, while other former
employees are providing input
on the project.
If successful in acquiring
Gawker, Mr. Del said the blog
would be operated by a nonprofit foundation. If they reach
their funding target but someone else purchases the blog in
bankruptcy, Mr. Del, 30 years
old, said they plan to launch a
new publication intended to
capture the “Gawker ethos,”
which he described as publishing unbiased and unfiltered gossip, news articles and writing.
The Gawker Foundation,
which would operate the site,
was formed in November, according to Delaware’s Division
of Corporations. Ms. Spiers, 41,
said she has agreed to join the
foundation’s board. The legal
framework mirrors that of
ProPublica and other nonprofit
journalism
organizations,
though the editorial direction
of a relaunched Gawker would
be significantly different.
The proposal comes as more
journalism projects use crowdfunding to get off the ground,
according to the Pew Research
Center. The amount raised on
Kickstarter for such projects,
though still relatively small, increased from $49,256 to more
than $1.7 million during the
first nine months in 2015, Pew
said in a 2016 report.
“There are some people
who feel [Gawker] filled a certain space journalistically and
there were other people who
were fans of it and there are
some people who don’t like a
billionaire putting them out of
business,” Ms. Spiers said
when asked who might donate
to the project. “So, I think
there is a range of motivations.”
Their long-term ambition is
to relaunch Gawker using a
new membership model that
will fund the site’s operation.
Money from readers would be
used to pay editors and writers as well as legal and administrative costs, Mr. Del said,
and there would be no advertising or paywalls.
“There are no shareholders.
It really belongs to the people
it should belong to: the readers and editors,” Mr. Del said.
Mr. Del left Gawker in 2015 after more than seven years at
the company.
Gawker founder Nick Denton said Monday in an email
he was working on a new project in Europe and hasn’t been
following
proposals
for
Gawker.com.
A settlement with Mr. Hogan bars administrators from
selling Gawker to Mr. Denton
without the wrestler’s consent.
Mr. Denton wrote in Gawker’s
final post that the blog “lingers on the web like a ghost
ship, the crew evacuated.”
The funding drive is starting weeks after venture capitalist Peter Thiel said he was
interested in bidding on
Gawker. Mr. Thiel financed Mr.
Hogan’s case against Gawker.
Representatives for Mr.
Thiel didn’t respond to messages seeking comment.
Its order book has
fallen to about $20
billion this year from
$45 billion in 2013.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY JONATHAN RANDLES
SEONGJOON CHO/BLOOMBERG NEWS
Gawker Ex-Staffers
Raise Funds, Look
To Restart Website
George Lazaridis, research
head at Athens-based Allied
Shipbroking. “The offshore
market has substantially
shrunk, with new orders going
to yards in Singapore that
have lower labor costs, by employing workers from across
Southeast Asia.”
In past years, Samsung
Heavy relied on offshore projects for about two-thirds of its
sales, with the remainder com-
Your wealth
may not last
forever.
But it could.
We know,
because we know you well.
Knowing our clients well gives us the
insight to help with their wealth—
and their lives. From wealth planning
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844-239-7710 | bnymellonwealth.com | @BNYMellonWealth
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York Mellon Corporation. All rights reserved.
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.
B6 | Tuesday, December 12, 2017
THE WALL STREET JOURNAL.
* ***
BUSINESS & FINANCE
Market Shows a Sign of Unease
An indicator of anxiety
Ample Ambiguity
over stocks reaches
A new measure of risk that isn’t captured by traditional
records despite a very gauges of volatility, called ambiguity, suggests investors
low volatility measure aren't as complacent as they seem.
3.0
BY BEN EISEN
Recession
2.5
Two academics are rolling
out a new measure of market
fear that suggests investors
aren’t nearly as complacent as
they seem.
The gauge of so-called ambiguity, meant to chronicle the
degree of uncertainty investors have in the probabilities
they use to make decisions,
has been at all-time highs in
recent months, indicating that
there is more fear built into
the stock market than common measures of volatility
suggest. The Cboe Volatility
Index, a popular metric for
tracking fear in the market,
has been idling near record
lows this year.
In separating out ambiguity
from common measures of
risk, Menachem Brenner of
2.0
1.5
1.0
0.5
0
2004 ’05 ’06 ’07 ’08 ’09 ’10
’11
’12
Note: Data are monthly.
Source: Menachem Brenner and Yehuda Izhakian
New York University and Yehuda Izhakian of Baruch College are picking up on a concept that traces back nearly a
century.
Economist Frank Knight in
1921 wrote about the difference between risk and uncertainty.
If volatility measures the
uncertainties for which one
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
can determine a probability, or
the “known unknowns,” ambiguity measures the “unknown
unknowns,” to use a term popularized by former Defense
Secretary Donald Rumsfeld,
according to Mr. Brenner.
Mr. Brenner, an early pioneer
of
volatility
research whose work was profiled in The Wall Street
Journal in March, and Mr.
Izhakian are turning the concept into a gauge of current
market conditions that they
hope will be useful for market
watchers. They came up with
the measure by analyzing market returns in five-minute increments. Their research is to
be published in the Journal of
Financial Economics.
In October, the gauge hit
2.42, its highest reading in
monthly data that extends
back to 1993.
That is above the gauge’s
previous peak of 2.41 at the
height of the financial crisis in
October 2008.
Last month, it retreated a
bit to 2.28, the third-highest
reading on record, the data
show.
That is in sharp contrast to
the Cboe Volatility Index, or
VIX, an options-based measure
of expected stock swings over
the next 30 days.
The decline in the VIX this
year has befuddled investors
and traders of all stripes,
given the host of geopolitical
uncertainties in locations like
North Korea and political skirmishes in Washington.
Not to mention, stocks have
been rising relentlessly for
years, unnerving some investors who say that stocks are
trading too high relative to expected earnings.
Mr. Brenner, however, notes
that is part of the point. Their
research found that ambiguity
tends to rise alongside the
market.
In other words, the higher
stock prices climb, the more
uncertainty investors feel
about where it is going in the
future.
In that sense, the high levels of ambiguity don’t necessarily suggest an imminent decline in the stock market.
In some ways, Mr. Brenner
says, ambiguity looks a lot like
it did between 2004 and 2006,
when the measure was on the
rise alongside stocks, Mr.
Brenner says.
The main difference, however, is that ambiguity is a lot
higher now.
who has faced other workplace complaints in the past.
In 2012, Mr. Batali and his
business partner agreed to a
$5.25 million settlement in a
case brought by waiters and
other staffers who alleged that
a portion of their tips were
seized at many of the pair’s
New York restaurants.
Separately, the New Yorker
magazine said Monday it cut
ties with well-known political
reporter Ryan Lizza for alleged sexual misconduct.
Mr. Lizza is also a contributor on CNN. A spokeswoman
for the cable network said he
won’t appear on air while it
looks into the matter.
Mr. Lizza called that the
New Yorker's decision a “terri-
NICHOLAS KAMM/GETTY IMAGES
Celebrity chef and television host Mario Batali has
stepped down from the day-today operations of his restaurant-management company after
sexual-misconduct
allegations.
Vox Media’s Eater website
reported that multiple women
had told the food-industry site
that Mr. Batali had touched
them inappropriately and that
he was reprimanded for inappropriate behavior in the
workplace as recently as two
months ago.
“Much of the behavior described does, in fact, match up
with ways I have acted. That
behavior was wrong and there
are no excuses,” Mr. Batali said
Monday. “I want any place I am
associated with to feel comfortable and safe for the people
who work or dine there.”
Mr. Batali said he would
“step away” from operations
of Batali & Bastianich Hospitality Group, which runs a
number of restaurants around
the country and world, including New York City’s Eataly.
ABC said it asked Mr. Batali
to also step away as host of
the show “The Chew” as it reviews the allegations, saying it
was unaware of any inappropriate behavior.
Two of the unidentified
women in the Eater piece said
the incidents occurred while
they worked for Mr. Batali,
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY AUSTEN HUFFORD
BY MATT WIRZ
KKR & Co. has struck a deal
to boost its direct lending
business by $14 billion in a
move that furthers the private-equity firm’s transformation into a high-yield debt
powerhouse.
Asset managers have been
piling into direct lending in recent years as a way to expand
business while making higheryielding investments. Banks
pulled out of the so-called middle market after the financial
crisis, creating an opportunity
for investment firms to fill the
gap with high-yielding loans of
their own. Such loans have become more attractive for investors as low interest rates have
dragged down yields in public
high-yield debt markets.
KKR is replacing Blackstone Group LP as the managers of about $14 billion in assets under management for FS
Investment Corp., an operator
of business development corporations, or BDCs, the companies said Monday. The publicly listed investment vehicles
make tax-exempt loans to
small and medium-size companies with below-investmentgrade credit ratings. They pay
out the high yields they receive on the loans to shareholders in dividends.
KKR already operates two
BDCs with about $4.5 billion of
assets under the Corporate Capital Trust brand, and the firm will
seek shareholder approval to
merge them into the FS Investment BDCs. The resulting $18
billion fund would be the largest
BDC in operation, accounting for
30% of the total $59.2 billion
BDC assets, according to data
from Wells Fargo Securities.
Separately, EIG Global Energy Partners will take over
investments of a $4.4 billion
FS Investment BDC focused on
energy and power companies.
ly
.
Batali Steps Down and Calls
Workplace Behavior ‘Wrong’
KKR Acts
To Bolster
Its Direct
Lending
Chef Mario Batali faces accusations of sexual misconduct.
ble mistake” made without a
full investigation.
Messrs. Lizza and Batali are
the latest in a string of celebrities to face such allegations.
New Orleans chef John
Besh resigned as chief executive of his Besh Restaurant
Group in October after female
employees reported being vic-
tims of sexual harassment at
work, according to media reports. Matt Lauer was fired as
co-anchor of NBC’s “Today”
show last month after the
company said it received a report of inappropriate sexual
behavior in the workplace.
—The Associated Press
contributed to this article.
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Monday, December 11, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
AMLP
10.64
2.31 –15.6
CnsmrDiscSelSector
XLY
97.46
0.22
19.7
Closing Chg YTD
Symbol Price (%) (%)
ETF
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
XLP
XLE
XLF
RSP
56.58
69.78
27.94
100.60
–0.02
0.72
–0.25
0.09
9.4
–7.4
20.2
16.1
This announcement appears as a matter of record only.
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© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
ETF
Closing Chg YTD
Symbol Price (%) (%)
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$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
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
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
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
83.36
74.54
109.26
104.61
122.39
65.67
55.78
62.44
268.22
188.77
76.04
60.92
109.15
99.16
72.62
52.91
11.94
121.07
87.37
115.47
106.43
71.88
70.02
63.32
46.17
43.68
59.80
106.23
110.43
134.29
148.17
123.84
184.18
151.35
125.68
157.62
207.35
88.83
215.40
152.83
113.65
38.51
113.60
83.93
105.84
126.43
119.93
101.69
155.90
48.16
23.08
36.78
118.01
34.32
64.34
63.61
244.17
344.12
266.31
96.51
64.15
56.21
21.51
165.41
132.29
158.97
101.28
44.46
44.43
58.47
70.11
54.03
140.41
154.99
85.63
84.04
87.47
122.36
154.12
110.97
84.02
244.68
79.22
79.47
146.77
81.56
55.20
56.10
136.80
73.67
106.02
64.74
58.85
32.11
0.42
–0.20
–0.07
–0.03
–0.07
0.16
0.58
0.26
0.34
–0.11
–0.28
0.28
–0.04
0.12
–0.10
0.11
–0.42
0.07
0.02
–0.05
–0.10
0.38
0.26
0.09
0.50
–0.07
0.34
0.15
–0.12
0.31
0.28
0.28
–0.08
–0.04
–0.14
0.25
–0.02
0.05
–0.15
0.40
0.25
–0.08
–0.08
–0.05
–0.07
–0.21
–0.09
0.02
0.78
0.19
0.09
0.05
–0.40
0.23
0.28
0.30
0.23
–0.07
0.30
–0.12
0.86
0.61
–0.78
0.80
–0.14
–0.14
0.10
0.20
0.66
0.09
–0.27
0.28
0.39
0.24
0.35
–0.06
–0.02
0.33
0.03
0.02
–0.01
0.32
–0.06
...
–0.04
–0.07
0.04
0.21
0.23
0.24
0.27
0.09
0.48
0.31
20.9
19.8
1.0
–0.3
–0.1
22.4
31.4
23.7
19.2
14.2
10.6
18.8
1.0
12.0
18.6
17.0
7.8
3.3
0.9
4.8
0.1
21.5
21.3
27.0
31.9
26.2
22.4
20.1
2.1
28.0
19.1
10.5
19.6
12.2
5.7
18.5
15.9
10.4
18.2
25.5
12.1
3.5
0.4
–0.6
1.0
6.1
23.1
0.4
31.6
15.8
–1.2
0.9
7.7
24.0
18.8
19.4
23.6
14.0
19.1
12.8
32.7
15.7
2.8
36.1
9.3
19.4
18.9
21.7
24.2
22.0
18.1
22.3
26.0
22.3
13.0
1.2
2.1
19.5
17.1
14.2
1.8
19.2
–0.3
0.1
13.8
1.0
1.7
22.3
18.6
20.8
14.0
12.8
18.8
14.4
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.
Tuesday, December 12, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24386.03 s 56.87, or 0.23%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.47 21.59
P/E estimate *
19.93 18.43
Dividend yield
2.16
2.44
All-time high 24386.03, 12/11/17
Nasdaq Composite Index
Last
2659.99 s 8.49, or 0.32%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.85 24.87
P/E estimate *
19.78 18.45
Dividend yield
1.90
2.09
All-time high: 2659.99, 12/11/17
Last Year ago
6875.08 s 35.00, or 0.51%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.26
24.02
P/E estimate *
21.05
19.25
Dividend yield
1.06
1.23
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
52-Week
Low
High
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
24389.72 24314.74 24386.03
0.23
56.87
-0.30
Transportation Avg 10416.00 10345.71 10370.83 -31.68
762.97
Utility Average
Total Stock Market
Barron's 400
762.59
4.90
27510.65 27443.08 27508.61
705.38
702.45
703.55
73.37
-0.58
Nasdaq Stock Market
Nasdaq Composite
6879.80
Nasdaq 100
6394.43
754.74
6844.88
6347.91
0.65
0.27
-0.08
0.51
35.00
49.32
6875.08
6393.89
Standard & Poor's
500 Index
2660.33
2651.47
2659.99
8.49
MidCap 400
SmallCap 600
1893.20
930.37
1886.13
923.99
1888.20
925.32
-2.66
-2.79
Other Indexes
Russell 2000
1527.47
1518.30
1519.84
-1.88
19763.53 12643.06 12668.21
25.15
0.78
0.32
-0.14
-0.30
23.2
23.4
10402.51
8783.74
11.2
14.7
5.1
774.47
645.05
16.9
15.6
8.1
27508.61 23276.73
708.56
600.24
17.2
16.4
18.2
16.9
9.2
9.9
6912.36
6422.56
5383.12
4863.62
27.0
31.2
11.5
27.7
31.5
13.5
14.6
2659.99
2238.83
17.9
18.8
9.3
1899.18
944.10
1660.58
815.62
12.2
9.0
13.7
10.4
9.9
11.2
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.
Volume, Advancers, Decliners
Company
Volume
(000)
Symbol
557.01
555.99
NYSE Arca Biotech
4255.20
4187.54
NYSE Arca Pharma
544.24
539.24
543.60
3.98
KBW Bank
106.98
105.86
106.17
-0.48
77.97
76.68
76.99
0.06
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
Cboe Volatility
-0.12
1544.14
0.20
0.10
0.58
556.57
4188.94 -43.81 -1.04
136.50
134.14
136.05
1.95
1248.81
10.08
1236.71
9.28
1245.58
9.34
7.33
-0.24
0.74
-0.45
0.07
1345.24
10.7
12668.21 11056.89
-2.51
12.0
9.2
13.3
14.6
5.8
559.05
503.24
8.0
10.0
4.4
4304.77
3075.02
33.8
36.2
6.5
After Hours
% chg
High
Region/Country Index
0.09
F
Ford Motor
10,850.1 12.58
iShares MSCI Hong Kong EWH 6,538.4 25.28
AAPL 5,466.1 172.70
Apple
…
unch.
12.60
12.56
0.01
0.04
25.28
25.27
0.03
0.02 172.80 169.17
SPY
0.03 266.77 265.48
CTL
CenturyLink
VanEck Vectors Gold Miner GDX
4,640.5
15.88
0.01
0.06
15.96
15.84
3,941.6
21.52
0.01
0.05
21.53
21.48
iShares Russell 2000 ETF IWM
3,733.5 151.60
0.25
0.17 152.01 151.22
Microsoft
3,410.3
85.38
0.15
0.18
777.2
3.35
1.00
42.55
4.40
2.39
7.2
19.14
1.24
6.90
19.14
17.90
MSFT
85.50
Percentage gainers…
Kala Pharmaceuticals
KALA
85.21
Investors Real Estate Tr IRET
12.0
6.25
0.37
6.29
6.29
5.88
KMG Chemicals
KMG
66.5
58.56
3.37
6.11
59.94
55.13
Verastem
VSTM
93.2
3.79
0.19
5.28
3.91
3.60
34.5
16.45
-0.93
-5.35
17.38
16.45
141.3 116.10
-5.15
-4.25 122.06 116.00
...And losers
560.52
469.13
14.3
12.9
0.0
88.02
15.7
15.7
13.2
96.72
73.03
-4.1
-2.4
3.2
117.79
-28.8
-26.0 -11.9
SCYNEXIS
SCYX
5.0
2.21
-0.09
-3.91
2.30
2.21
885.46 40.7
9.14 -26.1
37.4 22.2
-33.5 -22.5
Oasis Petroleum
OAS
307.4
9.70
-0.36
-3.58
10.14
9.68
Myomo
MYO
7.3
3.01
-0.11
-3.53
3.20
3.01
1341.69
16.04
Solaris Oilfield A
SOI
Casey's General Stores CASY
Close
Percentage Gainers...
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
637.16
Sao Paulo Bovespa 72800.04
S&P/TSX Comp
16103.51
S&P/BMV IPC
47699.04
Santiago IPSA
3801.70
1.86
68.20
7.44
126.18
97.13
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
389.05
391.21
4019.19
5386.83
13123.65
1460.50
22690.98
548.41
1144.35
10306.90
579.27
9314.76
7453.48
–0.20
–0.77
–6.56
–12.26
–30.05
14.82
–82.82
1.19
24.81
–14.20
3.13
–4.40
59.52
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5998.30
Shanghai Composite 3322.20
Hang Seng
28965.29
S&P BSE Sensex
33455.79
Nikkei Stock Avg
22938.73
Straits Times
3460.45
Kospi
2471.49
Weighted
10473.09
3.90
32.20
325.44
205.49
127.65
35.81
7.49
74.47
–0.05
–0.20
–0.16
–0.23
–0.23
–0.36
–0.14
–0.05
YTD
% chg
0.34
0.41
0.54
19.5
20.0
21.7
0.29
0.09
0.05
0.27
2.62
17.9
20.9
5.3
4.5
17.9
1.03
0.22
2.22
0.54
0.80
7.6
11.7
11.4
10.8
14.3
–0.7
18.0
13.5
–0.7
10.2
8.4
13.3
4.3
no
n-
10.38
1.62
1.39
The Global Dow
DJ Global Index
DJ Global ex U.S.
Latest
% chg
Net chg
3024.28
391.38
260.36
0.07
0.98
1.14
0.62
0.56
1.05
0.30
0.72
5.9
7.0
31.7
25.6
20.0
20.1
22.0
13.2
Company
Symbol
arGEN-X ADR
Seven Stars Cloud Group
Riot Blockchain
Marathon Patent Group
Sunesis Pharmaceuticals
ARGX
Arcimoto
U.S. Global Investors A
Net Element
Famous Dave's of America
Xunlei ADR
FUV
Blueprint Medicines
Overstock.com
Clearside Biomedical
bluebird bio
Chicken Soup Soul Ent A
BPMC
High
52-Week
Low
% chg
U.S. consumer rates
Selected rates
A consumer rate against its
benchmark over the past year
Money market accounts
...
182.0
450.8
2.3
-8.0
Spark Therapeutics
Syros Pharmaceuticals
Technical Communications
Wins Finance Holdings
Verastem
ONCE
1.02
1.38
1.41
1.70
3.52
37.92
35.02
34.99
32.08
29.38
6.35
6.90
15.40
9.65
27.00
2.54
1.25
2.56
3.38
3.11
...
272.7
-39.6
44.3
272.6
Long Island Iced Tea
Juno Therapeutics
bebe stores
Co-Diagnostics
Trillium Therapeutics
LTEA
88.32 16.46
OSTK
55.00 9.93
CLSD
7.05 1.16
BLUE 201.80 30.65
CSSE
9.48 1.38
22.91
22.02
19.69
17.91
17.04
92.00 25.34
65.70 13.75
10.46 5.44
222.03 60.95
13.26 6.79
241.3
228.4
-18.8
188.3
...
Arsanis
Novan
Ovid Therapeutics
Hornbeck Offshore
LM Funding America
ASNS
RIOT
MARA
SNSS
3.71
GROW
5.33
NETE
5.44
DAVE
7.00
XNET
15.50
Most Active Stocks
Company
Symbol
SPDR S&P 500
General Electric
LendingClub
Bank of America
iShares MSCI Emg Markets
SPY
Finl Select Sector SPDR
Snap
Valeant Pharm Intl
CenturyLink
Ford Motor
XLF
GE
LC
BAC
EEM
SNAP
VRX
CTL
F
Volume % chg from Latest Session
(000) 65-day avg Close % chg
61,445
57,591
54,653
53,402
45,942
-6.4
-21.8
568.3
-22.4
-10.8
266.31 0.30
17.65 -0.34
3.89 10.83
28.94 -0.38
46.17 0.50
42,582
34,632
33,646
32,579
31,834
-24.4
39.4
145.2
122.6
-9.6
27.94 -0.25
16.22 7.63
20.55 4.31
15.87 8.18
12.58 -0.24
52-Week
High
Low
266.80 222.73
32.38 17.46
6.79
3.29
29.31 21.77
47.93 33.94
28.20
29.44
20.73
27.61
13.27
22.00
11.28
8.31
13.16
10.47
t
Federal-funds
target rate
0.75
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
0.50
t
0.25
0.00
J F MAM J J A S O N D
2017
American Express Bank, FSB
1.25%
New York, NY
866-215-8754
Barclays
Wilmington, DE
3.75%
3.00
Capital One 360
Glen Allen, VA
1.30%
877-464-0333
UFB Direct
San Diego, CA
1.41%
844-678-2718
1
3 6
month(s)
0
–5
One year ago 0.75
–10
0.00
–15
1 2 3 5 710
years
maturity
Euro
5
1.50
t
1.30%
888-720-8756
10%
2.25
Monday
30
s
Yen
s
WSJ Dollar index
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
1.51
1.56
Money market, annual yield
0.33
0.34
Five-year CD, annual yield
1.49
1.49
30-year mortgage, fixed†
3.90
3.88
15-year mortgage, fixed†
3.32
3.30
Jumbo mortgages, $424,100-plus† 4.30
4.29
Five-year adj mortgage (ARM)† 3.70
3.65
New-car loan, 48-month
3.18
3.74
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.96 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
1.56
0.36
1.49
4.33
3.50
4.88
4.03
3.74
1.00
1.00
1.32
-0.09
-0.03
-0.08
0.08
0.01
0.10
0.58
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
1461.262
2.231
2.221
2.237
1.818
3.188 1.607
10-yr Treasury, Ryan ALM 1730.900
DJ Corporate
380.771
Aggregate, Barclays Capital 1942.140
High Yield 100, Merrill Lynch 2856.926
Fixed-Rate MBS, Barclays 1986.110
Muni Master, Merrill
521.331
2.387
3.146
2.700
5.590
2.900
2.149
2.379
3.150
2.700
5.502
2.910
2.201
2.609
3.390
2.790
5.890
3.120
2.419
2.058
2.879
2.380
4.948
2.660
1.736
3.115
6.430
3.839
6.846
2.532
4.890
804.461
5.566
5.567
6.221
5.279
9.862 6.920
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.253
3.835
2.235
4.974
1.887
2.471
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
TCCO
WINS
VSTM
JUNO
BEBE
CODX
TRIL
NOVN
OVID
HOS
LMFA
Latest Session
Close Net chg % chg
High
52-Week
Low
% chg
47.72 -25.66 -34.97
8.45 -3.92 -31.69
5.00 -1.35 -21.26
48.01 -9.80 -16.95
3.60 -0.73 -16.86
91.75 41.06
24.38 6.30
9.30 2.15
465.00 19.80
5.71 1.08
-9.3
-48.5
112.8
-56.6
207.7
1.70
50.24
4.80
3.80
9.75
-0.31
-8.41
-0.77
-0.60
-1.50
-15.59
-14.34
-13.82
-13.64
-13.33
6.68 1.70
63.45 17.52
7.00 3.02
6.85 3.50
13.30 4.15
-65.7
178.5
-16.4
...
58.5
12.22
4.30
10.45
2.79
3.32
-1.75
-0.54
-1.29
-0.34
-0.40
-12.53
-11.16
-10.99
-10.86
-10.75
19.73 12.21
28.90 3.52
15.93 5.28
9.07 1.51
6.65 1.11
...
-84.6
...
-66.1
-32.4
Ranked by change from 65-day average*
Company
Symbol
Franklin FTSE Europe Hdg
Franklin FTSE Japan Hdg
Famous Dave's of America
Spark Therapeutics
arGEN-X ADR
FLEH
iShares Morningstar MC
Syros Pharmaceuticals
Goldman Sachs Trea 0-1Y
SPDR SSGA US SC Low Vol
Easterly Govt Properties
JKG
Country/currency
FLJH
DAVE
ONCE
ARGX
SYRS
GBIL
SMLV
DEA
Volume % chg from Latest Session
(000) 65-day avg Close % chg
8361
4876
3629
2996
2848
775
1,094
1,054
14,750
1,498
186
4,973
816
217
6,787
US$vs,
YTDchg
Mon
in US$ per US$ (%)
52-Week
High
Low
24.83 0.49
26.16 0.21
7.00 32.08
47.72 -34.97
54.47 78.88
25.19
26.39
9.65
91.75
54.47
24.37
25.23
3.38
41.06
17.33
2340 184.37 -0.05
8.45 -31.69
2299
1785 99.99 0.01
1764 96.82 -0.37
1750 21.78 0.83
185.81
24.38
100.15
100.14
22.00
157.18
6.30
99.96
88.01
19.00
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0580 17.2355 8.6
Brazil real
.3026 3.3049 1.5
Canada dollar
.7779 1.2856 –4.4
Chile peso
.001524 656.10 –2.0
Ecuador US dollar
1
1 unch
Mexico peso
.0525 19.0623 –8.1
Uruguay peso
.03442 29.0500 –1.0
Venezuela b. fuerte .099338 10.0667 0.7
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
.7527 1.3286
China yuan
.1512 6.6116
Hong Kong dollar
.1281 7.8063
India rupee
.01554 64.361
Indonesia rupiah .0000738 13557
Japan yen
.008806 113.56
Kazakhstan tenge .002974 336.25
Macau pataca
.1243 8.0419
Malaysia ringgit
.2453 4.0770
New Zealand dollar
.6909 1.4474
Pakistan rupee
.00930 107.500
Philippines peso
.0199 50.364
Singapore dollar
.7399 1.3516
South Korea won .0009184 1088.84
Sri Lanka rupee
.0065172 153.44
Taiwan dollar
.03331 30.020
Thailand baht
.03066 32.620
Vietnam dong
.00004394 22759
Commodities
–4.3
–4.8
0.7
–5.3
0.2
–2.9
0.8
1.6
–9.1
0.2
3.0
1.5
–6.6
–9.9
3.4
–7.5
–8.9
–0.1
.04595 21.761 –15.3
.1581 6.3237 –10.5
1.1771 .8496 –10.6
.003740 267.39 –9.1
.009536 104.87 –7.2
.1193 8.3820 –3.0
.2802 3.5691 –14.8
.01697 58.923 –3.8
.1176 8.5029 –6.6
1.0084 .9917 –2.7
.2606 3.8367 8.9
.0369 27.1125 0.1
1.3339 .7497 –7.5
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6515 .3771 –0.01
.0561 17.8235 –1.7
.2833 3.5298 –8.3
3.3100 .3021 –1.1
2.5973 .3850 0.01
.2718 3.679 1.1
.2666 3.7505 –0.01
.0735 13.6025 –0.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.32
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
0.03 0.03 –6.05
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Monday
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
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
notes and bonds
1.25%
877-247-2559
NYSE Arca
Currencies
Forex Race
t
Money market
account yields
Ally Bank
Midvale, UT
Nasdaq
Total volume*1,777,938,404 196,294,944
Adv. volume*1,097,122,860 130,669,762
Decl. volume* 627,218,725 64,861,957
Issues traded
3,117
1,343
Advances
1,393
850
Declines
1,585
462
Unchanged
139
31
New highs
87
63
New lows
52
21
Closing tick
44
59
Closing Arms†
0.50
1.00
Block trades*
5,955
1,054
* 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
s
1.00%
SYRS
Volume Movers
* Volumes of 100,000 shares or more are rounded to the nearest thousand
0.34%
Bankrate.com avg†:
Symbol
54.47 17.33
4.84 1.10
24.00 3.02
10.03 0.50
4.45 1.82
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
78.88
47.35
45.52
42.86
38.71
54.47 24.02
3.61 1.16
23.08 7.22
6.30 1.89
3.44 0.96
SSC
Total volume* 781,190,817 13,899,299
Adv. volume* 469,125,266 8,901,551
Decl. volume* 289,532,706 4,770,689
Issues traded
3,096
333
Advances
1,595
162
Declines
1,374
155
Unchanged
127
16
New highs
115
2
New lows
26
11
Closing tick
20
1
Closing Arms†
0.71
0.60
Block trades*
6,090
156
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
21,549.6 266.40
SPDR S&P 500
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Interest rate
Net chg
106.84
1.45 192.66
0.59
Philadelphia Stock Exchange
Last
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
NYSE Composite
NYSE NYSE Amer.
Most-active issues in late trading
Proteostasis Therapeutics PTI
Value Line
World
24386.03 19732.40
Late Trading
ly
.
Major U.S. Stock-Market Indexes
599.10
2.92
185.49
57.99
2.828
1243.70
0.48
0.63
0.056
-1.50
0.49
616.58
532.01
0.26 195.14
58.95
1.10
3.93
2.02
-0.12 1346.00
166.50
42.53
2.56
1127.80
% Chg
4.50
YTD
% chg
5.61
-4.06 -3.65
7.95
9.77
-19.36 -24.06
8.15
6.89
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 | Tuesday, December 12, 2017
COMMODITIES
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
2.9505
2.9930
2.9400
2.9880 0.0330
March'18 2.9815 3.0190
2.9635
3.0115 0.0330
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1248.40 1249.20
1239.90 1243.70 –1.50
Feb'18
1249.20 1253.40
1242.40 1246.90 –1.50
April
1255.00 1257.40
1247.20 1251.30 –1.50
June
1259.80 1261.90
1252.20 1255.60 –1.50
Aug
1262.90 1266.00
1256.00 1260.10 –1.50
Dec
1272.90 1275.00
1265.00 1269.10 –1.40
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1012.30 1012.60
1011.65 1012.10
2.35
March'18 998.50 1005.25
993.25
998.75
2.35
June
993.50
996.50
985.55
990.25
1.85
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
891.90
9.10
Jan'18
890.00
893.30
883.70
892.80
9.10
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
15.775
15.800
15.625
15.697 –0.039
March'18 15.845 15.905
15.700
15.785 –0.038
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Jan
57.25
58.08
56.91
57.99
0.63
Feb
57.32
58.12
57.00
58.05
0.61
March
57.36
58.11
57.05
58.04
0.58
April
57.35
58.05
57.08
58.01
0.55
June
57.16
57.78
56.92
57.72
0.49
Dec
55.55
55.99
55.39
55.94
0.32
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9287
1.9584
1.9187
1.9506 .0218
Feb
1.9280
1.9588
1.9183
1.9508 .0228
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.7158
1.7368
1.7064
1.7266 .0100
Feb
1.7277
1.7531
1.7213
1.7426 .0118
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.831
2.848
2.793
2.828
.056
Feb
2.862
2.862
2.808
2.847
.055
March
2.819
2.831
2.781
2.816
.049
April
2.727
2.737
2.702
2.722
.024
May
2.738
2.738
2.706
2.723
.019
Oct
2.827
2.828
2.796
2.813
.015
Open
interest
2,803
142,601
2,178
346,207
27,883
37,135
11,009
15,563
37
32,671
1,152
3
64,041
805
157,603
357,318
352,722
326,607
165,221
241,263
267,576
111,523
84,738
116,241
77,997
327,578
208,902
241,030
150,878
120,290
82,812
Contract
High hilo
Low
Settle
Open
interest
Chg
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
340.00
340.00
336.00
336.50 –3.50
Dec
March'18 352.00 352.25
t 348.25
349.00 –3.75
Oats (CBT)-5,000 bu.; cents per bu.
...
...
...
227.50
1.25
Dec
March'18 242.75 246.50
239.00
243.75
1.75
Soybeans (CBT)-5,000 bu.; cents per bu.
989.00
989.00
981.50
982.50 –7.25
Jan
March
1000.75 1001.00
993.25
994.00 –7.50
Soybean Meal (CBT)-100 tons; $ per ton.
326.00
327.70
325.90
326.00 –4.00
Dec
March'18 335.80 335.80
330.90
331.80 –3.90
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.38
33.51
33.31
33.40
–.14
Dec
March'18
33.73
33.88
33.52
33.61
–.18
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1210.50 1223.00
1203.50 1222.00 15.50
Jan
March
1240.00 1252.50
1233.00 1252.00 15.50
Wheat (CBT)-5,000 bu.; cents per bu.
386.50
387.25
t 386.50
387.75 –4.25
Dec
March'18 418.00 418.75
t 410.75
413.50 –5.50
Wheat (KC)-5,000 bu.; cents per bu.
398.25
398.25
t 397.00
395.25 –5.50
Dec
March'18 417.50 418.25
t 410.50
412.75 –5.25
Wheat (MPLS)-5,000 bu.; cents per bu.
...
596.75
596.75
596.75 –1.00
Dec
March'18 611.50 613.75
606.75
608.75 –2.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
145.350 146.275
144.450 145.450
.225
Jan
March
143.375 144.350
142.550 143.325
…
Cattle-Live (CME)-40,000 lbs.; cents per lb.
115.450 116.150
115.075 115.175 –.400
Dec
Feb'18
118.300 118.875
117.575 117.725 –.575
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
63.900
64.050
63.525
63.600 –.075
Dec
Feb'18
68.750
69.125
66.925
67.025 –1.825
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
429.70
432.70
426.20
429.90
.20
Jan
March
421.20
423.30
417.50
421.40
1.50
Milk (CME)-200,000 lbs., cents per lb.
Dec
15.58
15.65
15.58
15.61
.01
Jan'18
14.35
14.48
14.23
14.34
–.04
1,206
843,236
14
5,376
244,410
224,079
898
147,554
293
152,116
6,155
3,761
345
304,631
35
208,420
89
45,490
19,979
19,184
12,268
138,017
13,521
98,159
4,214
1,768
4,074
3,773
Monday, December 11, 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.
Monday
Monday
15.8350
11852
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
0.9663
1.0350
2.800
2.800
3.770
2.410
2.540
2.280
2.680
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
*892.0
Platinum,Engelhard industrial
887.0
Platinum,Engelhard fabricated
987.0
Palladium,Engelhard industrial
1012.0
Palladium,Engelhard fabricated
1112.0
Aluminum, LME, $ per metric ton
*1992.0
Copper,Comex spot
2.9880
Iron Ore, 62% Fe CFR China-s
69.0
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
630
Gold, per troy oz
1250.27
1344.04
1247.15
1384.34
*1245.85
*1250.65
1294.96
1307.41
1307.41
1509.28
1223.50
1307.41
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.
15.7700
18.9240
15.7500
19.6880
£11.8400
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Monday
322.70
9.4700
n.a.
4.1700
3.9575
5.1850
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
185.64
165.48
0.8568
2.1900
167.00
145.75
68.25
2132
1.2034
1.4065
1.7650
15.40
0.73
64.76
n.a.
0.8318
n.a.
165.75
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
0.6125
0.7225
*84.70
66.000
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
4.85
103
3.1750
96.3
476.4
233
92
213
2.6875
390.00
n.a.
8.0175
Fats and Oils
34.0000
0.2300
0.3800
0.3246
0.2650
0.3200
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 12/8
Source: WSJ Market Data Group
December 11, 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
U.S. consumer price index
–0.06
0.28
2.0
1.8
0.50
0.50
0.50
0.25
Treasury bill auction
Australia
1.50
1.50
1.50
1.50
4 weeks
13 weeks
26 weeks
Overnight repurchase
Latest
Prime rates
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Euro zone
Switzerland
Discount
0.00
0.50
0.00
0.50
0.00
0.50
Key Interest Rates
1.38
0.24
0.00
0.50
1.15
1.16
1.75
1.75
1.00
0.41
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
1.26
1.30
1.36
1.18
1.26
1.32
1.26
1.30
1.36
0.50
0.61
0.71
1.29
1.37
1.42
1.23
1.30
1.36
1.29
1.37
1.42
0.50
0.63
0.75
Discount window primary credit
1.75
1.75
1.75
1.00
n.a.
n.a.
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.17
1.29
1.47
1.66
1.80
1.93
2.14
2.28
2.36
2.57
1.15
1.28
1.44
1.62
1.77
1.87
2.10
2.26
2.36
2.60
1.17
1.30
1.47
1.66
1.80
1.93
2.14
2.37
2.55
2.91
0.37
0.51
0.60
0.80
1.12
1.39
1.65
1.90
2.07
2.43
30 days
60 days
Effective rate 1.1700 1.1700 1.2000 0.4200
High
1.3125 1.3125 1.3125 0.5625
1.1600 1.1600 1.1700 0.4000
Offer
1.1700 1.1700 1.1900 0.4200
–1.60
253
–2.60 122,012
Dec
March'18
1.3394
1.3434
1.3434
1.3482
1.3333
1.3380
1.3343 –.0058 157,786
1.3389 –.0059 32,729
–.10 392,002
–.10 154,050
Dec
March'18
1.0076
1.0151
1.0108
1.0182
1.0071
1.0149
1.0091
1.0166
.7511
.7506
.7513
.7507
.7517
.7545
.7543
.7541
.7541
.7531
.7506
.7506
.7512
.7503
.7515
.7531
.7531
.7529
.7528
.7527
.05
.14
2,770
2,258
–.72 170,582
–.62 44,102
–1.85
–1.70
5,293
3,717
1-month
3-month
6-month
52-Week
High
Low
1.15
1.27
1.44
1.13
1.26
1.41
1.15
1.27
1.44
0.36
0.50
0.59
0.41
0.47
0.49
0.67
0.71
0.39
0.50
0.52
0.72
0.76
0.41
0.50
0.63
0.97
0.97
-0.02
0.20
0.28
0.60
0.65
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Corporate bonds, Moody's seasoned
Aaa
Baa
n.a.
n.a.
3.460 3.494 3.865 3.253
3.478 3.520 3.899 3.281
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Swiss Franc (CME)-CHF 125,000; $ per CHF
n.a.
n.a.
.0009 131,171
.0009 12,346
Australian Dollar (CME)-AUD 100,000; $ per AUD
Dec
Jan'18
Feb
March
June
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
.05278
.05283
March'18 .05202 .05207
Euro (CME)-€125,000; $ per €
Dec
1.1776
1.1816
March'18 1.1849 1.1890
.0013
.0012
74,925
16,585
.0026 138,789
.0026
1,246
.0026
671
.0026
9,677
.0026
260
.05238
.05164
.05247 –.00025 165,475
.05170 –.00025 25,932
1.1769
1.1843
1.1791
1.1865
.0018 385,103
.0018 89,588
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
24325
24350
24404
24424
24321
24337
S&P 500 Index (CME)-$250 x index
24401
24419
Dec
2653.00 2662.00 s
2652.00 2661.60
March'18 2655.40 2664.30
2652.60 2664.50
Mini S&P 500 (CME)-$50 x index
Dec
2652.00 2662.00
2649.25 2661.50
March'18 2655.00 2665.00
2652.25 2664.50
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1892.10 1894.00
1885.60 1888.00
March'18 1894.60 1897.90
1890.00 1893.20
Mini Nasdaq 100 (CME)-$20 x index
Dec
6343.0
6409.8
6339.8
6397.5
March'18 6363.5 6427.8
6359.0
6416.0
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1520.70 1528.00
1517.20 1522.30
March'18 1526.10 1531.50
1520.50 1525.70
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1470.90 1474.20
1470.40 1474.30
March'18 1473.30 1475.20 s 1473.30 1475.80
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
93.86
93.96
93.65
93.84
March'18
93.48
93.59
93.25
93.47
83 100,691
83 66,731
10.60
10.60
75,239
19,831
10.50 2,336,063
10.50 1,392,934
–2.10
–.80
57,416
38,260
57.5 236,586
57.5 100,813
1.30
1.50
63,744
5,142
4.90
5.00
328
22
–.03
–.02
31,714
12,376
Source: SIX Financial Information
3.3
1942.14
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
2.700 2.380 2.790
U.S. Aggregate
1986.11
1951.95
U.S. Corporate Indexes Bloomberg Barclays
2.3
Mortgage-Backed
1.7
Ginnie Mae (GNMA) 2.860 2.630 3.090
2.900 2.660 3.120
2.5
Fannie mae (FNMA) 2.910 2.670 3.120
2.6
Freddie Mac (FHLMC) 2.930 2.680 3.130
3.260 3.030 3.520
1165.14
2618.02
3.8 Intermediate
2.870 2.530 3.010
1794.20
3895.82
10.8 Long term
4.080 4.030 4.710
521.33
4.5 Muni Master
2.149 1.736 2.419
2.710 2.470 2.870
364.68
5.0 7-12 year
2.181 1.744 2.516
3.560 3.340 3.870
410.35
6.4
12-22 year
2.482 2.213 2.923
398.13
7.3
22-plus year
2.852 2.716 3.508
2788.33
5.9
U.S. Corporate
4.3 Double-A-rated
568.01
6.6
720.25
Triple-B-rated
High Yield Bonds Merrill Lynch
7.3
416.90
High Yield Constrained 5.775 5.373 6.293
Global Government J.P. Morgan†
Triple-C-rated
10.685 9.584 11.642
546.09
1.7
Global Government 1.390 1.300 1.560
2856.93
6.5
High Yield 100
5.590 4.948 5.890
761.42
1.1
Canada
1.940 1.570 2.190
378.49
7.5
Global High Yield Constrained 5.234 4.934 5.939
375.68
1.8
EMU§
0.958 0.933 1.363
306.29
6.7
Europe High Yield Constrained 2.417 1.897 3.514
720.06
1.9
France
0.700 0.690 1.210
Germany
0.380 0.210 0.620
8.8
418.54
512.64
U.S Agency Bloomberg Barclays
-0.4
1638.22
2.0
U.S Agency
2.160 1.690 2.160
288.41
0.1
Japan
0.400 0.340 0.460
1462.82
1.1
10-20 years
2.020 1.490 2.020
566.82
0.1
Netherlands
0.480 0.360 0.760
20-plus years
2.920 2.730 3.460
927.79
U.K.
1.530 1.340 1.790
2.940 2.610 3.090
804.46
8.3
3385.04
4.9 Yankee
2460.73
1.6
8.8
Emerging Markets ** 5.566 5.279 6.221
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Week
Latest
ago
3.00
3.00
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.36
1.44
1.45951
1.56347
1.73535
2.01356
1.39181
1.50849
1.69313
1.98169
1.45951
1.56347
1.73535
2.01356
0.69472
0.95872
1.29822
1.65400
-0.404
-0.386
-0.318
-0.258
-0.399
-0.383
-0.312
-0.258
-0.376
-0.329
-0.223
-0.083
-0.405
-0.387
-0.322
-0.259
-0.369
-0.327
-0.271
-0.191
-0.368
-0.326
-0.272
-0.190
Value
Traded
-0.366
-0.313
-0.216
-0.081
-0.375
-0.332
-0.276
-0.192
52-Week
High
Low
1.114
1.130
16.200 1.366 0.264
97.670 1.506 0.284
98.690 0.010 2495 1.310
98.560 -0.005 1486 1.440
98.560 unch. 624 1.440
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
l
1.806
1.807
1.779
0.5
0.7
l
2.537
2.607
2.825
18.3
16.1
35.8
France 2 -0.595 s
10 0.621 t
l
-0.612
-0.582
-241.1
-178.9
l
0.625
0.623
-0.652 -242.2
0.809
-176.3
-175.0
-165.8
Germany 2 -0.730 s
10 0.298 t
l
-0.740
-0.751
-253.9
-189.5
l
0.309
0.381
-0.758 -255.7
0.368 -208.7
-206.7
-209.9
Italy 2 -0.341 s
10 1.653 s
l
-0.355
-0.204
-0.098
-216.8
-215.3
-123.5
l
1.648
1.814
2.038
-73.1
-72.7
0.100
-42.9
Japan 2 -0.150 s
10 0.051 s
l
-0.151
-0.199
-0.180
-197.7
-194.9
-131.7
0.100
l
0.049
0.029
Spain 2 -0.370 t
10 1.405 s
l
-0.370
-0.321
-0.251
-219.7
l
1.389
1.536
1.506
-98.0
0.473 t
1.206 t
l
0.500
0.475
0.149
l
1.281
1.265
1.336
1.750
U.K. 2
4.250
10
0.055 -233.4
-135.4
-117.8
64.2
-232.7
-241.1
-216.8
-138.8
-98.6
-96.0
-129.9
-98.8
-109.5
-113.0
in that same company’s share price.
Open Implied
Settle Change Interest Rate
Treasury Dec
Treasury Jan
Treasury Feb
1.832 s
2.567 s
10
Investment-grade spreads that tightened the most…
DTCC GCF Repo Index Futures
Eurodollars
1.137
2.467
0.72
DTCC GCF Repo Index
State and local bonds
n.a.
1.43
Latest
Treasury
MBS
1.641
2.397
Source: Tullett Prebon
Euro interbank offered rate (Euribor)
One month
Three month
Six month
One year
1.799
2.375
Australia 2
0.750
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
l
2.750
0.000
Year ago
U.S. 2 1.827 s
10 2.384 s
2.750
0.000
Month ago
l
Corporate Debt
Euro Libor
One month
Three month
Six month
One year
1.750
2.250
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
2.25
Libor
One month
Three month
Six month
One year
Country/
Coupon (%) Maturity, in years
1.450
52-Week
high
low
Call money
90 days
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
2.750
Commercial paper (AA financial)
TIPS
5-year
7-year
10-year
20-year
Long-term avg
.8812
… 181,011
.8859 –.0002 52,565
British Pound (CME)-£62,500; $ per £
.7782
.7794
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
0.050
3.00
Week Ended
Dec 8
Dec 1
1 month
3 month
6 month
.7772
.7783
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
2.050
Other short-term rates
1.0500 1.0500 1.1600 0.2500
Bid
Treasury yields (secondary market)
1.16
.8798
.8847
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Open
interest
.7794
.7806
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.8834
.8881
Chg
.7780
.7790
154-040 154-210
154-010 154-050
5.0 17,940
Dec
March'18 153-000 153-190
152-280 153-010
5.0 752,684
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
124-155 124-235
124-155 124-160
–.5 84,613
Dec
March'18 124-085 124-175
124-070 124-085
… 3,218,431
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-192 116-225
116-170 116-170
–2.0 60,002
March'18 116-122 116-162
116-092 116-097
–2.0 2,931,835
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-117 107-122
107-100 107-100
–1.5 33,584
March'18 107-055 107-067
107-037 107-040
–1.5 1,726,324
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.710
98.710
98.708
98.708
… 118,669
Jan'18
98.600
98.605
t 98.595
98.600 –.005 350,585
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
100.891 100.891
100.609 100.625 –.031 14,173
March'18 98.313 98.328
98.031
98.094 –.031 12,748
1 Month Libor (CME)-$3,000,000; pts of 100%
Dec
98.5100 98.5100
98.5100 98.5075
…
2,465
Jan'18
98.4850 98.4850
t 98.4850 98.4875
…
4,039
Eurodollar (CME)-$1,000,000; pts of 100%
Dec
98.4050 98.4125
98.3975 98.4000 –.0025 1,646,026
March'18 98.2400 98.2450
98.2300 98.2300 –.0050 1,543,271
June
98.0900 98.1000
98.0750 98.0800 –.0100 1,334,592
Dec
97.9100 97.9250
97.8950 97.9000 –.0150 1,671,261
.8808
.8853
Settle
Dec
March'18
Interest Rate Futures
Dec
March'18
Contract
High hilo
Low
Open
25
42
25 131,824
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
0.500
Fannie Mae
Federal funds
52-Week
High
Low
Federal funds (effective)
1.180 1.170 1.300 0.340
1.320 1.290 1.320 0.505
1.460 1.450 1.460 0.590
Secondary market
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
Week Ended
Dec 8
Dec 1
—52-WEEK—
High Low
30-year mortgage yields
1.75
Low
Policy Rates
1.13
no
U.S.
Canada
Japan
1.09
U.S.
U.S. government rates
52-Week
High
Low
Week
Latest ago
Britain
International rates
Week
ago
—52-WEEK—
High Low
n-
246.663
253.638
All items
Core
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
1,856
1,884
1,856
1,917
March'18
1,904
1,953
1,901
1,912
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
121.00
121.00
121.00
119.00
March'18 122.30 122.80
t 119.55
120.00
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.05
14.14
13.90
13.95
May
14.00
14.06
13.84
13.87
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
March
26.99
27.00
26.97
27.00
May
27.23
27.23
27.23
27.23
Cotton (ICE-US)-50,000 lbs.; cents per lb.
March
73.72
73.83
72.80
73.00
May
74.17
74.17
73.36
73.58
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Jan
153.10
154.30
150.45
151.00
March
152.25
154.05
151.00
151.55
Open
interest
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Oct. index
level
Chg
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Fibers and Textiles
Metals
Settle
Currency Futures
Cash Prices | WSJ.com/commodities
Energy
Contract
High hilo
Low
Open
ly
.
Futures Contracts
WSJ.com/commodities
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.
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Viacom
Qualcomm
Bank of America
Pacific Gas And Electric
VIA
QCOM
BAC
PCG
5.875
3.250
5.000
5.125
Feb. 28, ’57
May 20, ’27
May 13, ’21
Nov. 15, ’43
373
113
12
123
–14
–11
–8
–8
357
126
13
n.a.
34.20
65.18
28.94
…
0.59
1.46
–0.38
…
21St Century Fox America
W.W. Grainger
Marathon Oil
Starbucks
FOXA
GWW
MRO
SBUX
6.150
4.600
6.600
2.200
Feb. 15, ’41
June 15, ’45
Oct. 1, ’37
Nov. 22, ’20
134
124
195
24
–7
–7
–7
–7
165
125
207
30
33.66
223.54
15.15
59.07
1.08
–0.17
...
0.78
61
46
205
n.a.
52.77
…
29.59
59.07
–0.23
…
...
0.78
n.a.
61
n.a.
n.a.
123.30
86.77
…
58.58
0.40
0.08
…
0.55
…And spreads that widened the most
Morgan Stanley
John Deere Capital
Xerox
Starbucks
MS
DE
XRX
SBUX
5.450 July 15, ’49
2.800 Jan. 27, ’23
3.625 March 15, ’23
2.100
Feb. 4, ’21
105
59
207
16
United Technologies
AmerisourceBergen
General Motors Financial
NetApp
UTX
ABC
GM
NTAP
4.500 April 15, ’20
3.500 Nov. 15, ’21
3.150 Jan. 15, ’20
3.300 Sept. 29, ’24
35
63
64
110
14
12
11
9
9
8
6
5
High-yield issues with the biggest price increases…
Bond Price as % of face value
Current
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol
Coupon (%)
Park Aerospace Holdings
Altice Luxembourg S.A.
CenturyLink
ACE Cash Express
AVOL
ATCNA
CTL
AACE
5.500 Feb. 15, ’24
7.625 Feb. 15, ’25
5.800 March 15, ’22
12.000 Dec. 15, ’22
100.875
94.500
96.375
102.250
1.50
1.38
1.38
1.25
101.375
92.250
95.595
n.a.
...
...
15.87
...
...
...
8.18
...
Denbury Resources
Valeant Pharmaceuticals International
Jones Energy Holdings
Noble Holding International
DNR
VRXCN
JONE
NE
9.250 March 31, ’22
6.125 April 15, ’25
6.750
April 1, ’22
5.250 March 15, ’42
99.500
90.125
74.063
62.000
1.25
1.25
1.06
1.00
n.a.
87.625
70.250
61.063
1.72
...
0.83
…
–1.15
...
–5.14
…
100.500
87.000
62.500
64.500
15.37
...
…
2.03
2.19
...
…
3.57
n.a.
74.250
81.250
n.a.
51.68
...
…
…
1.61
...
…
…
Maturity
Last week
…And with the biggest price decreases
Mattel
PetSmart
Revlon Consumer Products
Windstream Services
MAT
PETM
REV
WIN
6.200
5.875
6.250
6.375
Oct. 1, ’40
June 1, ’25
Aug. 1, ’24
Aug. 1, ’23
94.000
83.063
62.000
62.125
Sotheby's
Iheartcommunications
Mallinckrodt International Finance S.A.
Endo Finance
BID
IHRT
MNK
ENDP
4.875
9.000
4.750
7.250
Dec. 15, ’25
Dec. 15, ’19
April 15, ’23
Jan. 15, ’22
98.750
73.438
79.500
86.000
–5.00
–2.94
–1.80
–1.38
–1.00
–1.00
–0.88
–0.75
*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.
Tuesday, December 12, 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.
A B C
ABB
ABB 26.00 -0.20
AECOM
ACM 38.51 -0.06
AES
AES 10.86 0.10
Aflac
AFL 88.48 0.32
AGCO
AGCO 72.49 0.03
AGNC Invt AGNC 20.31 -0.06
Ansys
ANSS 146.39 0.26
ASML
ASML 175.13 3.15
AT&T
T
36.90 0.17
AbbottLabs ABT 54.94 0.30
AbbVie
ABBV 96.47 0.52
Abiomed
ABMD 193.43 2.07
s Accenture ACN 150.69 0.16
ActivisionBliz ATVI 63.17 0.74
AcuityBrands AYI 173.62 1.97
Adient
ADNT 79.69 0.81
AdobeSystems ADBE 174.31 0.74
AdvanceAuto AAP 100.85 0.54
AdvMicroDevices AMD 10.16 0.22
AdvSemiEngg ASX 6.43 0.04
Aegon
AEG 6.20 0.01
AerCap
AER 52.06 -0.30
Aetna
AET 181.57 -1.16
AffiliatedMgrs AMG 198.00 -2.43
AgilentTechs A
67.00 -0.38
AgnicoEagle AEM 42.53 -0.31
Agrium
AGU 108.01 1.88
AirProducts APD 163.12 2.20
AkamaiTech AKAM 56.55 0.05
AlaskaAir ALK 69.72 -0.02
Albemarle ALB 131.14 0.54
Alcoa
AA 42.24 0.84
s AlexandriaRlEst ARE 130.19 0.19
AlexionPharm ALXN 111.90 -2.56
Alibaba
BABA 179.29 1.67
AlignTech ALGN 233.66 -4.77
Alkermes ALKS 52.16 -0.72
Alleghany Y
585.50 -0.22
Allegion
ALLE 82.17 -0.29
Allergan
AGN 172.76 4.96
AllianceData ADS 234.28 1.23
AlliantEnergy LNT 45.08 0.14
AllisonTransm ALSN 41.90 0.12
Allstate
ALL 102.37 -0.13
s AllyFinancial ALLY 28.77 0.12
AlnylamPharm ALNY 128.20 -2.69
Alphabet A GOOGL 1051.97 2.59
Alphabet C GOOG 1041.10 4.05
Altaba
AABA 71.53 0.28
AlticeUSA ATUS 19.21 0.13
Altria
MO 71.65 0.11
AlumofChina ACH 16.15 0.46
Amazon.com AMZN 1168.92 6.92
Ambev
ABEV 6.34 -0.01
Amdocs
DOX 65.39 0.24
Amerco
UHAL 380.33 -0.79
Ameren
AEE 63.66 0.47
AmericaMovil A AMOV 17.14
...
AmericaMovil AMX 17.19 0.05
AmerAirlines AAL 51.30 0.28
AmCampus ACC 43.43 0.15
AEP
AEP 77.08 0.15
AmerExpress AXP 99.00 0.45
AmericanFin AFG 104.73 -0.06
AmerHomes4Rent AMH 21.84 0.07
AIG
AIG 59.79 0.28
AmerTowerREIT AMT 144.05 1.58
s AmerWaterWorks AWK 92.25 0.73
s Ameriprise AMP 167.78 -2.08
AmerisourceBrgn ABC 86.77 0.07
Ametek
AME 71.91 0.17
Amgen
AMGN 176.83 1.42
Amphenol APH 89.24 -0.10
AnadarkoPetrol APC 48.30 0.38
AnalogDevices ADI 85.80 0.28
Andeavor ANDV 110.96 -0.08
AndeavorLog ANDX 46.18 1.17
AB InBev BUD 111.42 -0.26
AnnalyCap NLY 11.99 0.08
AnteroResources AR 19.00 0.77
Anthem
ANTM 226.02 1.17
Aon
AON 138.30 -0.19
Apache
APA 40.19 -0.51
ApartmtInv AIV 44.26 0.13
ApolloGlbMgmt APO 32.38 0.48
Apple
AAPL 172.67 3.30
ApplMaterials AMAT 51.62 0.19
Aptiv
APTV 85.89 0.67
AquaAmerica WTR 38.13 -0.05
Aramark
ARMK 42.92 0.23
s ArcelorMittal MT 31.68 0.37
ArchCapital ACGL 92.57 0.56
ArcherDaniels ADM 41.90 0.39
Arconic
ARNC 24.43 -0.04
AristaNetworks ANET 223.69 0.90
ArrowElec ARW 78.30 0.42
AstraZeneca AZN 33.12 0.38
Athene
ATH 51.16 -0.34
Atlassian
TEAM 47.11 0.65
AtmosEnergy ATO 91.91 0.11
Autodesk ADSK 106.83 -0.33
Autohome ATHM 59.04 2.44
Autoliv
ALV 127.75 -0.90
ADP
ADP 117.82 1.80
AutoZone AZO 708.61-13.28
Stock
Net
Sym Close Chg
Avalonbay AVB 182.81 0.59
Avangrid
AGR 52.52 0.39
s AveryDennison AVY 114.98 1.25
AxaltaCoating AXTA 32.57 0.16
BB&T
BBT 49.75 -0.06
BCE
BCE 48.65 0.27
BHPBilliton BHP 41.63 0.57
BHPBilliton BBL 36.64 0.68
BOK Fin
BOKF 87.95 -0.40
BP
BP 39.93 0.29
BRF
BRFS 11.18 0.02
BT Group BT 18.06 0.02
BWX Tech BWXT 60.96 -1.02
Baidu
BIDU 233.54 -1.05
BakerHughes BHGE 30.59 0.33
Ball
BLL 39.60
...
BancoBilbaoViz BBVA 8.53 0.04
BancodeChile BCH 84.00 2.89
BancoMacro BMA 120.24 1.47
BcoSantChile BSAC 27.84 0.82
BancoSantander SAN 6.63 0.02
BanColombia CIB 39.78 0.79
BankofAmerica BAC 28.94 -0.11
BankofMontreal BMO 78.36 -0.07
BankNY Mellon BK 54.54 -0.13
BkNovaScotia BNS 64.74 -0.26
BankofOzarks OZRK 45.90 -0.65
Barclays
BCS 10.57 0.06
Bard CR
BCR 332.06 -0.74
BarrickGold ABX 13.65
...
BaxterIntl BAX 64.14 0.09
BectonDicknsn BDX 218.31 -1.37
Berkley
WRB 70.49 0.09
BerkHathwy B BRK.B 196.70 0.26
BerkHathwy A BRK.A 2954791094.65
BerryGlobal BERY 60.24 0.04
BestBuy
BBY 63.62 -0.17
Bio-RadLab A BIO 253.18 -1.90
Biogen
BIIB 328.03 2.26
BioMarinPharm BMRN 88.11 6.12
BlackKnight BKI 45.60 0.05
BlackBerry BB 10.56 0.31
BlackRock BLK 512.13 -3.36
Blackstone BX 32.17 -0.02
s BlueBuffaloPet BUFF 32.49 0.54
s bluebirdbio BLUE 201.80 30.65
Boeing
BA 283.16 -2.74
BorgWarner BWA 53.56 -0.20
BostonProps BXP 125.05 0.39
BostonSci BSX 25.50 -0.27
Braskem
BAK 26.74 0.49
BrightHorizons BFAM 91.77 0.21
BrighthouseFin BHF 59.97 -0.23
Bristol-Myers BMY 63.02 0.60
BritishAmTob BTI 67.15 0.39
Broadcom AVGO 259.95 0.04
BroadridgeFinl BR 89.80 0.27
s BrookfieldMgt BAM 43.38 0.03
BrookfieldInfr BIP 43.88 -0.09
Brown&Brown BRO 51.60 -0.33
Brown-Forman B BF.B 65.94 -0.54
Brown-Forman A BF.A 65.34 -0.60
BuckeyePtrs BPL 47.54 0.98
Bunge
BG 69.67 -0.12
BurlingtonStrs BURL 112.14 -0.75
CA
CA 33.33 -0.15
CBD Pao
CBD 22.66 0.15
CBRE Group CBG 43.35 -0.27
CBS B
CBS 57.68 0.21
CBS A
CBS.A 58.05 0.30
CDK Global CDK 70.78 0.05
CDW
CDW 70.27 0.51
CF Industries CF 39.40 0.14
CGI Group GIB 52.90 -0.40
CH Robinson CHRW 87.97 -0.41
CIT Group CIT 51.07 1.23
CME Group CME 152.71 -0.11
CMS Energy CMS 50.09 0.22
CNA Fin
CNA 53.27 -0.24
CNOOC
CEO 136.75 1.26
t CPFLEnergia CPL 10.94 -0.38
CRH
CRH 35.43 -0.24
CSX
CSX 56.97 0.51
CVS Health CVS 73.08 -0.01
CabotOil
COG 28.33 0.58
CadenceDesign CDNS 43.50 -0.06
CaesarsEnt CZR 12.75 0.15
CalAtlantic CAA 54.99 -0.41
CamdenProperty CPT 92.36 0.20
CampbellSoup CPB 48.55 -0.40
CIBC
CM 93.15 0.15
CanNtlRlwy CNI 79.89 -0.18
CanNaturalRes CNQ 34.61 -0.03
CanPacRlwy CP 178.01 -2.20
Canon
CAJ 38.48 0.13
CapitalOne COF 95.97 0.18
CardinalHealth CAH 60.24 1.35
Carlisle
CSL 112.89 -1.23
Carlyle
CG 22.25 0.10
CarMax
KMX 67.97 0.49
Carnival
CCL 67.03 0.12
Carnival
CUK 66.92 -0.03
Caterpillar CAT 143.77 -0.09
Cavium
CAVM 85.34 -0.23
CboeGlobalMkts CBOE 126.35 1.08
Celanese A CE 105.66 -0.88
Celgene
CELG 108.00 1.91
Cemex
CX
7.49 0.02
CenovusEnergy CVE 9.58 0.14
Stock
Net
Sym Close Chg
Centene
CNC 99.70
CenterPointEner CNP 28.85
CentraisElBras EBR 5.72
CenturyLink CTL 15.87
Cerner
CERN 70.13
CharterComms CHTR 331.49
CheckPoint CHKP 105.85
Chemours CC 48.14
CheniereEnergy LNG 47.70
CheniereEnerPtrs CQP 28.34
CheniereEnHldgs CQH 27.14
Chevron
CVX 120.42
ChinaEastrnAir CEA 29.97
ChinaLifeIns LFC 15.94
ChinaLodging HTHT 121.00
t ChinaMobile CHL 48.91
ChinaPetrol SNP 71.10
ChinaSoAirlines ZNH 49.80
ChinaTelecom CHA 48.40
ChinaUnicom CHU 13.59
Chipotle
CMG 313.39
Chubb
CB 150.24
ChunghwaTel CHT 35.03
Church&Dwight CHD 47.96
Cigna
CI 209.16
CimarexEnergy XEC 112.72
CincinnatiFin CINF 74.56
s Cintas
CTAS 158.33
s CiscoSystems CSCO 37.96
Citigroup
C
75.85
CitizensFin CFG 41.42
CitrixSystems CTXS 87.02
Clorox
CLX 145.05
Coca-Cola KO 45.33
Coca-Cola Euro CCE 39.29
Coca-Cola Femsa KOF 68.74
Cognex
CGNX 63.50
CognizantTech CTSH 71.56
Coherent
COHR 290.81
ColgatePalm CL 73.17
ColonyNorthStar CLNS 12.21
Comcast A CMCSA 38.44
Comerica
CMA 84.67
CommerceBcshrs CBSH 55.01
CommScope COMM 38.43
SABESP
SBS 10.12
ConagraBrands CAG 37.24
ConchoRscs CXO 141.15
ConocoPhillips COP 51.69
s ConEd
ED 89.66
ConstBrands A STZ 219.37
ContinentalRscs CLR 48.07
Cooper
COO 228.45
Copart
CPRT 43.90
Corning
GLW 32.57
CoStar
CSGP 290.50
Costco
COST 188.86
Coty
COTY 17.91
Credicorp
BAP 208.83
s CreditAcceptance CACC 322.28
s CreditSuisse CS 17.43
CrownCastle CCI 110.91
CrownHoldings CCK 58.62
Ctrip.com CTRP 43.16
Cullen/Frost CFR 94.68
Cummins
CMI 170.77
-1.64
-0.06
0.03
1.20
-0.29
6.99
1.07
0.50
0.30
0.37
0.35
0.50
1.03
0.03
-2.44
-0.25
0.17
3.30
0.32
0.09
-2.51
0.19
0.07
-0.44
-0.81
0.82
0.16
-0.85
0.35
0.14
-0.32
-0.57
-0.18
0.02
0.52
0.57
-0.88
-0.26
-2.14
-0.15
0.03
0.49
-0.73
-0.68
0.52
0.06
-0.01
0.94
0.12
0.74
1.39
0.14
1.89
-0.06
0.22
-1.84
0.79
0.13
-0.24
3.00
...
1.41
-0.18
0.18
0.15
-0.11
D E F
DISH Network DISH 49.43
DTE Energy DTE 115.99
DXC Tech DXC 95.77
Danaher
DHR 93.21
Darden
DRI 86.55
DaVita
DVA 69.51
Deere
DE 151.33
DellTechs DVMT 79.29
DeltaAir
DAL 54.37
DentsplySirona XRAY 65.02
DeutscheBank DB 19.30
DevonEnergy DVN 38.49
Diageo
DEO 141.67
DiamondbkEner FANG 111.30
DigitalRealty DLR 114.95
s DiscoverFinSvcs DFS 74.35
DiscovComm C DISCK 18.44
DiscovComm A DISCA 19.77
Disney
DIS 106.83
DolbyLab
DLB 61.89
DollarGeneral DG 93.35
DollarTree DLTR 107.07
DominionEner D
84.14
Domino's
DPZ 180.96
Donaldson DCI 49.32
DouglasEmmett DEI 40.44
Dover
DOV 96.78
DowDuPont DWDP 70.81
DrPepperSnap DPS 94.52
DukeEnergy DUK 88.37
DukeRealty DRE 27.71
ENI
E
32.95
EOG Rscs EOG 101.21
EQT
EQT 57.13
E*TRADE ETFC 49.64
EXACT Sci EXAS 51.96
EastWestBncp EWBC 59.73
EastmanChem EMN 92.80
Eaton
ETN 77.77
s EatonVance EV 56.57
0.84
0.50
-0.16
0.03
0.14
1.80
-0.25
2.04
0.91
0.12
-0.08
0.44
-0.15
0.53
0.14
0.55
0.04
0.11
2.60
0.10
-0.03
-1.60
0.26
-2.95
0.51
-0.19
-1.82
0.08
0.37
0.32
-0.20
0.20
0.82
0.75
-0.74
-1.87
-0.62
0.62
0.48
-0.27
New Highs and Lows | WSJ.com/newhighs
Monday, December 11, 2017
52-Wk %
Sym Hi/Lo Chg Stock
Highs
ATA
ATAI
Ablynx
ABLX
Accenture
ACN
AdtalemGlbEduc ATGE
AEGONNotes AEK
AlexandriaRlEst ARE
AllenaPharm
ALNA
AllyFinancial
ALLY
AmerWaterWorks AWK
Ameriprise
AMP
ApolloMedical AMEH
ArcelorMittal MT
ArchCoal
ARCH
ArenaPharm
ARNA
arGEN-X
ARGX
ArmstrongWorld AWI
AspenAerogels ASPN
AveryDennison AVY
BGC Partners BGCP
BRT Apartments BRT
BigRockPtrsAcqnUn BRPAU
BigRockPtrs
BRPA
BioanalyticalSys BASI
Biomerica
BMRA
BlueBuffaloPet BUFF
bluebirdbio
BLUE
BlueprintMed BPMC
BrookfieldMgt BAM
BrookfieldBusPtr BBU
CONSOL Energy CEIX
CVR Energy
CVI
CVR Refining CVRR
CambridgeBncp CATC
CapitalOnePfdH COFpH
CarpenterTech CRS
Carters
CRI
Cintas
CTAS
CiscoSystems CSCO
CitiTrends
CTRN
ConEd
ED
CreditAcceptance CACC
CreditSuisse
CS
DiscoverFinSvcs DFS
DovaPharm
DOVA
EPR PropPfdG EPRpG
EatonVance
EV
Ecopetrol
EC
EldoradoResorts ERI
6.62
24.25
151.14
44.80
26.89
130.54
15.40
29.08
92.37
170.35
11.00
31.81
88.00
32.18
54.47
60.55
5.14
115.31
16.97
11.17
10.50
10.93
2.95
4.10
32.57
222.03
92.00
43.49
33.34
30.24
34.63
13.65
81.40
27.19
52.21
112.53
159.83
38.04
27.87
89.70
324.08
17.45
74.68
31.67
24.73
57.03
12.48
33.40
9.1
...
0.1
0.9
-0.3
0.1
1.8
0.4
0.8
-1.2
8.4
1.2
2.3
-2.8
78.9
0.1
0.6
1.1
0.4
0.2
-0.2
0.2
...
9.9
1.7
17.9
22.9
0.1
4.1
16.3
2.2
3.5
9.0
...
-1.8
-0.6
-0.5
0.9
-2.5
0.8
0.9
...
0.7
0.3
0.2
-0.5
2.2
1.8
52-Wk %
Sym Hi/Lo Chg Stock
EmclaireFin
EMCF
EssentGroup ESNT
Etsy
ETSY
FamousDave's DAVE
Fanhua
FANH
Fauquier
FBSS
FederatedInvest FII
Ferroglobe
GSM
FirstAmerFin FAF
FirstRepBkPfdH FRCpH
FirstSolar
FSLR
FleetCorTech FLT
FreseniusMed FMS
Freshpet
FRPT
FullHouse
FLL
FusionTelecom FSNN
GabelliGlSMidPfdA GGZpA
GasLogPfdA
GLOGpA
GlbBloodTherap GBT
GreatPlainsEner GXP
GrubHub
GRUB
GpoSupervielle SUPV
H&E Equipment HEES
HMG Court
HMG
HailiangEduc
HLG
HalozymeTherap HALO
HoeghLNG PfdA HMLPpA
HollyFrontier
HFC
HoulihanLokey HLI
Hydrogenics
HYGS
Invesco
IVZ
IRSA
IRS
InnovativeIndProp IIPR
InteractiveBrkrs IBKR
InterContinentl IHG
IntersectENT XENT
InvestorsRE PfdC IRETpC
KB Home
KBH
KeyTechnology KTEC
KeyCorp
KEY
LGI Homes
LGIH
LKQ
LKQ
LRAD
LRAD
LambWeston LW
LasVegasSands LVS
Leidos
LDOS
LendingTree
TREE
LifeStorage
LSI
LincolnNatlWt LNC.WS
LincolnNational LNC
lululemon
LULU
31.75
47.29
19.96
9.65
24.98
22.25
34.94
17.51
56.62
25.97
71.80
189.31
51.85
19.40
4.07
4.08
26.21
26.95
45.85
34.72
70.74
28.70
38.19
12.45
47.50
19.95
26.18
46.91
45.30
11.50
37.85
31.87
21.55
61.49
59.95
34.40
26.05
31.48
19.99
20.07
72.47
41.25
2.27
57.20
71.42
64.48
319.95
91.36
75.41
78.74
74.78
1.2
0.4
3.2
32.1
-0.3
5.1
-1.8
3.5
0.9
-0.2
...
1.4
-0.1
0.8
4.7
-0.5
-0.3
0.6
-2.0
0.5
3.1
-0.3
1.1
4.7
0.4
-0.6
0.3
2.0
0.6
10.7
-0.7
-6.1
4.6
-0.8
-0.3
14.5
...
-0.8
12.0
-0.8
-1.6
0.3
-0.4
1.2
1.0
0.2
-2.0
1.0
1.3
-1.7
-0.2
Net
Sym Close Chg
HOLX 43.82
-0.13 Hologic
-0.66 HomeDepot HD 182.25
0.27 HondaMotor HMC 33.33
1.18 Honeywell HON 153.21
0.15 HormelFoods HRL 36.99
0.21 DR Horton DHI 50.47
2.65 HostHotels HST 19.83
-0.14 HuanengPower HNP 25.05
HUBB 130.74
0.26 Hubbell
HUM 253.03
0.21 Humana
JBHT 111.30
-0.03 JBHunt
0.12 HuntingtonBcshs HBAN 14.62
-0.23 HuntingIngalls HII 234.10
-0.04 Huntsman HUN 31.07
71.90
0.14 HyattHotels H
0.54 IAC/InterActive IAC 121.03
9.71
0.55 ICICI Bank IBN
IDXX 159.70
1.12 IdexxLab
-2.81 IHSMarkit INFO 45.13
... ING Groep ING 18.51
0.11 s Invesco
IVZ 37.39
0.11 IPG Photonics IPGP 206.65
4.85 IQVIA
IQV 101.68
-0.16 IRSA Prop IRCP 55.90
5.19 IcahnEnterprises IEP 52.77
0.48 Icon
ICLR 111.18
-0.69 IDEX
IEX 132.31
0.87 IllinoisToolWks ITW 165.03
0.29 Illumina
ILMN 214.11
-0.30 ImperialOil IMO 30.56
0.24 Incyte
INCY 97.25
1.54 Infosys
INFY 15.86
0.37 Ingersoll-Rand IR
87.82
0.41 Ingredion
INGR 139.68
0.83 Intel
INTC 43.66
0.04 s InteractiveBrkrs IBKR 60.67
1.98 ICE
ICE 70.81
0.04 s InterContinentl IHG 59.59
-0.50 IBM
IBM 155.41
-2.12 IntlFlavors IFF 152.30
0.60 IntlPaper
IP
57.32
0.28 Interpublic IPG 20.20
-0.13 Intuit
INTU 155.68
0.55 IntuitiveSurgical ISRG 373.55
-0.14 InvitatHomes INVH 23.67
-0.07 IonisPharma IONS 53.14
1.86 IronMountain IRM 40.70
0.50 IsraelChemicals ICL
4.06
-0.10 ItauUnibanco ITUB 12.90
-1.10
0.03
0.31 JD.com
JD 38.46
0.11 JPMorganChase JPM 105.62
2.70 JackHenry JKHY 116.89
0.23 JacobsEngg JEC 68.38
-0.15 JamesHardie JHX 16.66
-0.25 JanusHenderson JHG 36.82
1.00 JazzPharma JAZZ 140.00
-0.03 JetBlue
JBLU 22.19
0.04 J&J
JNJ 141.14
0.27 JohnsonControls JCI 37.71
-0.08 JonesLang JLL 149.20
-0.68 JuniperNetworks JNPR 28.39
-0.10 JunoTherap JUNO 50.24
-1.50 KAR Auction KAR 50.99
-0.57 KB Fin
KB 54.99
0.05 KKR
KKR 20.18
-0.06 KLA Tencor KLAC 103.85
J K L
G H I
GGP
GGP 23.39
Gallagher AJG 65.48
Gaming&Leisure GLPI 36.33
Gap
GPS 33.60
GardnerDenver GDI 32.03
Garmin
GRMN 61.96
Gartner
IT 120.01
Gazit-Globe GZT 10.11
GeneralDynamics GD 199.64
GeneralElec GE 17.65
GeneralMills GIS 55.89
GeneralMotors GM 41.67
Genpact
G
32.12
Gentex
GNTX 20.41
GenuineParts GPC 93.49
Gerdau
GGB 3.51
Gildan
GIL 32.02
GileadSciences GILD 75.88
GSK
GSK 35.31
GlobalPayments GPN 100.22
GoDaddy
GDDY 48.95
t Goldcorp
GG 11.84
GoldmanSachs GS 250.13
Goodyear GT 31.41
Graco
GGG 130.87
Grainger
GWW 223.54
s GreatPlainsEner GXP 34.70
Grifols
GRFS 21.57
s GrubHub
GRUB 70.34
GpoAeroportuar PAC 104.25
GpoAvalAcc AVAL 8.30
GpoFinGalicia GGAL 64.88
GpFinSantMex BSMX 7.72
GrupoTelevisa TV 18.64
HCA Healthcare HCA 84.97
HCP
HCP 26.72
HDFC Bank HDB 96.98
HD Supply HDS 38.97
HP
HPQ 21.30
HSBC
HSBC 50.20
Halliburton HAL 45.16
Hanesbrands HBI 20.65
HarleyDavidson HOG 50.79
Harris
HRS 142.64
HartfordFinl HIG 55.42
Hasbro
HAS 91.67
HealthcareAmer HTA 30.58
Heico A
HEI.A 75.00
Heico
HEI 90.76
Helm&Payne HP 58.44
HenrySchein HSIC 68.32
Herbalife
HLF 69.81
Hershey
HSY 112.80
Hess
HES 45.76
HewlettPackard HPE 14.58
Hilton
HLT 77.47
s HollyFrontier HFC 46.61
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
eBay
EBAY 37.52
Ecolab
ECL 134.67
s Ecopetrol
EC 12.43
EdisonInt
EIX 72.98
EdwardsLife EW 118.18
ElbitSystems ESLT 135.41
ElectronicArts EA 107.92
EmersonElec EMR 66.41
EnbridgeEnPtrs EEP 14.45
Enbridge
ENB 38.55
Encana
ECA 11.76
EnelAmericas ENIA 9.93
EnelGenChile EOCC 24.37
EnergyTransferEq ETE 16.03
EnergyTransfer ETP 16.61
Entergy
ETR 84.58
EnterpriseProd EPD 25.49
Equifax
EFX 118.52
Equinix
EQIX 449.58
EquityLife ELS 91.26
EquityResdntl EQR 65.92
Ericsson
ERIC 6.39
EssexProp ESS 249.16
EsteeLauder EL 125.47
EverestRe RE 217.47
EversourceEner ES 65.70
Exelixis
EXEL 26.42
Exelon
EXC 41.92
Expedia
EXPE 117.83
ExpeditorsIntl EXPD 64.16
ExpressScripts ESRX 68.39
ExtraSpaceSt EXR 87.82
ExxonMobil XOM 83.03
F5Networks FFIV 133.15
FMC
FMC 89.64
Facebook
FB 179.04
FactSet
FDS 204.05
Fastenal
FAST 53.82
FederalRealty FRT 129.79
FedEx
FDX 238.61
Ferrari
RACE 106.44
FiatChrysler FCAU 17.89
FibriaCelulose FBR 14.12
FidNatlFin FNF 40.63
FidNatlInfo FIS 95.71
FifthThirdBncp FITB 30.30
58.com
WUBA 71.34
s FirstAmerFin FAF 56.54
FirstData
FDC 16.42
FirstRepBank FRC 91.69
s FirstSolar FSLR 70.05
FirstEnergy FE 33.14
Fiserv
FISV 131.83
s FleetCorTech FLT 189.13
Flex
FLEX 18.07
FlirSystems FLIR 46.24
Fluor
FLR 50.13
FomentoEconMex FMX 94.44
FordMotor F
12.58
ForestCIty A FCE.A 24.15
Fortinet
FTNT 42.22
Fortis
FTS 36.81
Fortive
FTV 73.01
FortBrandsHome FBHS 68.12
Franco-Nevada FNV 76.36
FranklinRscs BEN 44.10
FreeportMcM FCX 15.02
s FreseniusMed FMS 51.59
Stock
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
Stock
Net
Sym Close Chg
1.13 LogitechIntl LOGI 33.00 -0.10 Nordson
NDSN 125.02 -2.29 RalphLauren RL 101.19
LOGM 117.30 0.30 Nordstrom JWN 45.84 0.06 RandgoldRscs GOLD 90.83
-1.16 LogMeIn
LOW 85.54 -0.06 NorfolkSouthern NSC 141.55 0.73 RaymondJames RJF 89.04
0.04 Lowe's
LULU 73.64 -0.13 NorthernTrust NTRS 97.56 -0.17 Raytheon RTN 187.08
-0.45 s lululemon
55.42
-0.25 s LyondellBasell LYB 107.51 0.37 NorthropGrum NOC 304.56 -1.11 RealtyIncome O
RHT 126.62
-0.31
NorwegCruise NCLH 54.72 -0.31 RedHat
RegencyCtrs
REG
67.68
-0.01
Novartis
NVS 83.80 -0.16
-0.01 M&T Bank MTB 170.51 -1.21 s NovoNordisk NVO 52.42 0.29 RegenPharm REGN 381.32
-0.01 s MGIC Investment MTG 15.42 0.04 Nucor
NUE 61.27 1.10 s RegionsFin RF 16.98
RGA 160.33
-3.46 MGM Resorts MGM 33.34 0.16 NVIDIA
NVDA 194.66 3.17 ReinsGrp
RelianceSteel RS 83.66
-1.21 MPLX
MPLX 37.06 1.35
RepublicSvcs
RSG 65.25
-0.23 MSCI
MSCI 128.34 0.63
ResMed
RMD 86.44
-2.91 Macerich
MAC 63.29 -2.46 OGE Energy OGE 34.55 0.09
RestaurantBrands QSR 60.45
0.62 Macy's
M
25.89 0.09 ONEOK
OKE 53.40 0.39
RioTinto
RIO 47.95
-0.39 MagellanMid MMP 67.94 0.84
OReillyAuto ORLY 247.24 -3.83
RobertHalf RHI 54.56
-2.88 MagnaIntl MGA 56.04 -0.12
OccidentalPetrol OXY 69.50 0.63
Rockwell
ROK 191.47
0.08 Manpower MAN 127.62 -0.34
OldDomFreight ODFL 128.61 -1.89
RockwellCollins COL 134.52
-0.87 ManulifeFin MFC 20.78 -0.11
Olin
OLN 34.85 0.06
RogersComm B RCI 50.29
-0.46 MarathonOil MRO 15.15
... Omnicom
OMC 74.44 0.96 Rollins
ROL 45.34
-0.04 MarathonPetrol MPC 64.46 -0.29
ON Semi
ON 19.48 0.06 RoperTech ROP 256.46
-0.28 Markel
MKL 1118.46 7.52 OpenText OTEX 32.90 0.37
RossStores ROST 76.76
1.39 MarketAxess MKTX 196.82 0.82
Oracle
ORCL 50.47 0.87 RoyalBkCanada RY 79.20
0.33 Marriott
MAR 128.57 -0.75 Orange
ORAN 17.26
... RoyalBkScotland RBS 7.61
-0.88 Marsh&McLen MMC 83.93 -0.20
OrbitalATK OA 132.31 -0.24 RoyalCaribbean RCL 125.45
-0.16 MartinMarietta MLM 208.68 -5.42
Orix
IX
83.84 -0.15 RoyalDutchA RDS.A 63.94
-0.73 MarvellTech MRVL 22.05 0.01
Oshkosh
OSK 88.46 -0.32 RoyalDutchB RDS.B 65.41
-0.33 Masco
MAS 42.42 -0.30 OwensCorning OC 87.91 -0.68
Ryanair
RYAAY 117.55
-1.46 Mastercard MA 150.88 0.99
PG&E
PCG 53.71 0.25 SAP
SAP 112.03
-3.54 MatchGroup MTCH 28.93 -0.45
PLDT
PHI 28.68 -1.23 s S&P Global SPGI 171.70
-0.17 MaximIntProducts MXIM 52.19 0.30
PNC Fin
PNC 143.29 -0.51 SBA Comm SBAC 166.61
0.67 McCormickVtg MKC.V 99.43 -2.93
POSCO
PKX 76.81 0.47 SEI Investments SEIC 71.15
0.18 McCormick MKC 100.52 -0.64
PPG Ind
PPG 115.68 -0.24 Sina
SINA 99.59
0.21 McDonalds MCD 173.25 0.10
PPL
PPL 34.62 0.12 SINOPEC
SHI 58.10
-0.21 McKesson MCK 153.81 1.24
PTC
PTC 61.44 -0.26 SK Telecom SKM 27.89
0.31 Medtronic MDT 81.27 0.20
PVH
PVH 134.56 -0.84 SLGreenRealty SLG 102.60
-0.47 MelcoResorts MLCO 26.37 0.52
Paccar
PCAR 71.74 -0.23 SS&C Tech SSNC 41.38
-0.12 MercadoLibre MELI 288.80 12.35
PackagingCpAm PKG 118.13 -0.21 SVB Fin
SIVB 232.39
-0.15 Merck
MRK 56.34 0.77 PacWestBancorp PACW 48.59 1.27 SageTherap SAGE 163.33
0.60 MetLife
MET 53.64 -0.12 PaloAltoNtwks PANW 144.16 0.27 Salesforce.com CRM 104.54
-0.74 MettlerToledo MTD 624.67 1.48
ParkHotels PK 28.37 -0.04 Sanofi
SNY 43.70
0.41 MichaelKors KORS 61.04 -0.77
s ParkerHannifin PH 191.94 -1.04 SantanderCons SC 18.19
-0.02 MicroFocus MFGP 32.49 0.13
SSL 31.11
ParsleyEnergy PE 26.58 0.48 Sasol
0.45 MicrochipTech MCHP 87.39 -0.02
s Paychex
SCG 42.38
PAYX 69.02 0.01 Scana
-6.06 MicronTech MU 43.01 -0.20
PayPal
PYPL 73.29 0.38 Schlumberger SLB 64.56
0.02 Microsemi MSCC 51.17 0.14
SCHW 50.72
Pearson
PSO 9.89 0.02 SchwabC
-1.46 Microsoft
MSFT 85.23 1.07
PembinaPipeline PBA 35.19 0.01 s ScottsMiracleGro SMG 102.66
0.58 MidAmApt MAA 102.88 -0.25
Pentair
PNR 69.77 -0.18 ScrippsNetworks SNI 81.81
0.03 Middleby
MIDD 124.98 -0.63
STX 40.47
People'sUtdFin PBCT 18.66 -0.18 Seagate
0.03 MitsubishiUFJ MTU 7.02 0.06
PepsiCo
PEP 117.39 0.82 SealedAir SEE 47.77
MizuhoFin MFG 3.61 -0.01
PerkinElmer PKI 70.81 -0.22 SeattleGenetics SGEN 55.27
MobileTeleSys MBT 8.84 0.11
Perrigo
PRGO 85.59 -0.01 SemicondctrMfg SMI 6.93
0.45 MohawkInds MHK 277.37 -3.20 PetroChina PTR 66.93 0.61 SempraEnergy SRE 118.03
MolsonCoors
B
TAP
80.79
0.65
-0.31
PetroleoBrasil PBR 9.74 0.04 SensataTech ST 47.90
-0.40 Mondelez MDLZ 42.87 0.22 PetroleoBrasilA PBR.A 9.32 0.02 s ServiceCorp SCI 37.85
-0.13 Monsanto MON 117.73 0.43 Pfizer
PFE 36.21 0.47 s ServiceMaster SERV 50.36
-0.03 MonsterBev MNST 62.94 -0.28 PhilipMorris PM 106.04 -0.55 ServiceNow NOW 123.09
MCO 152.39
...
0.69 Moody's
s Phillips66 PSX 99.72 0.17 ShawComm B SJR 22.96
1.03 MorganStanley MS 52.77 -0.12 PilgrimPride PPC 35.90 -1.25 SherwinWilliams SHW 407.76
Mosaic
MOS
23.84
0.22
0.11
PinnacleFoods PF 56.91 0.22 ShinhanFin SHG 44.27
0.55 MotorolaSol MSI 92.33 -0.19 PinnacleWest PNW 91.22 0.47 Shire
SHPG 148.50
MYL 39.49 0.82
0.30 Mylan
SHOP 104.11
PioneerNatRscs PXD 158.67 2.77 Shopify
-0.89 NRG Energy NRG 29.13 0.88 PlainsAllAmPipe PAA 20.41 0.63 SignatureBank SBNY 136.39
NTTDoCoMo
DCM
25.59
0.17
0.01
PlainsGP
PAGP 21.01 0.38 SimonProperty SPG 162.26
NVR 3423.26 30.58
-8.41 NVR
SIRI 5.64
s PolarisIndustries PII 129.50 -4.20 SiriusXM
NXP
Semi
NXPI
115.84
0.55
-0.26
Potash
POT 19.27 0.35 Skyworks SWKS 96.98
NDAQ 79.22 0.44
SmithAO
AOS 61.36
0.35 s Nasdaq
Praxair
PX 152.26 0.85
Smith&Nephew SNN 35.47
0.19 NationalGrid NGG 59.33 -0.24
Priceline
PCLN 1715.52 -4.32
Smucker
SJM 117.26
-0.13 NatlOilwell NOV 33.29 0.67
PrincipalFin PFG 71.53 -0.23
Snap
SNAP 16.22
0.18 NatlRetailProp NNN 41.84 -0.24
Procter&Gamble PG 90.23 -0.14
s
NektarTherap
NKTR
55.21
1.24
SnapOn
SNA 171.33
-1.11
Progressive PGR 54.88 -0.11
s
NetApp
NTAP
58.58
0.32
SOQUIMICH
SQM 51.92
0.02
Prologis
PLD 65.73 -0.43
NTES 344.77 23.26
Sony
SNE 44.90
-0.16 Netease
PrudentialFin PRU 116.26 -0.89
NFLX 186.22 -2.32
Southern
SO 51.68
-1.12 Netflix
Prudential PUK 49.18 -0.12
SoCopper SCCO 42.33
0.11 Neurocrine NBIX 70.59 -3.16
PublicServiceEnt PEG 52.40 0.47
SouthwestAir LUV 63.32
-1.62 NewOrientalEduc EDU 90.24 0.23
PublicStorage PSA 211.68 0.84
SpectraEnerPtrs SEP 42.21
-0.18 NY CmntyBcp NYCB 13.19 -0.16
PulteGroup PHM 33.81 -0.20
NewellBrands
NWL
30.92
-0.04
SpectrumBrands SPB 113.75
0.17
Qiagen
QGEN 31.26 -0.15
SpiritAeroSys SPR 83.82
-0.35 NewfieldExpln NFX 30.36 0.97
Qorvo
QRVO
68.62 0.74
Splunk
SPLK 81.39
0.68 NewmontMin NEM 34.67 -0.73
Qualcomm
QCOM
65.18 0.94
Sprint
S
5.44
-0.15 NewsCorp B NWS 16.90 0.10
s QuantaServices PWR 39.17 -0.23
Square
SQ 38.30
0.10 NewsCorp A NWSA 16.59 0.04
QuestDiag DGX 97.10 0.01
s
NextEraEnergy
NEE
159.25
0.22
StanleyBlackDck
SWK
166.90
-0.11
Starbucks SBUX 59.07
-0.10 NielsenHoldings NLSN 37.89 -0.06
NKE 61.91 0.61
StateStreet STT 97.41
-0.31 s Nike
RENX 22.75
... Statoil
NI
27.18 0.04 RELX
STO 20.21
0.10 NiSource
RELX 23.37 -0.03 SteelDynamics STLD 40.70
0.71 NobleEnergy NBL 26.88 -0.06 RELX
RPM
RPM
52.88
-0.68
NOK 4.58 -0.06
Steris
STE 87.83
-0.02 Nokia
0.29 NomuraHoldings NMR 5.82 -0.02 RSP Permian RSPP 37.00 0.37 STMicroelec STM 21.78
M N
O P Q
-1.15
-0.87
-0.45
-0.99
-0.16
1.33
0.10
0.54
-0.10
-1.53
0.59
0.11
0.07
-0.26
0.78
-0.12
-1.39
-0.09
-0.13
-0.66
-4.12
-0.13
-0.44
-0.03
0.22
0.48
0.52
-2.76
-0.52
0.49
1.42
-0.07
2.57
0.11
0.48
...
0.75
0.12
-4.01
1.10
0.46
0.37
0.31
-2.79
1.02
-0.67
1.18
-0.04
-0.02
-0.02
-4.00
0.11
1.34
-0.15
0.08
0.04
1.28
0.13
-1.09
-0.03
0.50
3.34
-1.18
0.01
...
0.70
-0.86
-0.66
-1.35
1.15
-0.86
0.97
-0.89
0.62
0.34
-0.01
1.21
-0.72
-1.13
0.97
...
0.21
-0.76
0.46
-0.26
0.08
...
-0.62
0.38
Net
Sym Close Chg
Stock
Stryker
SYK 152.71
s SumitomoMits SMFG 8.36
s SunComms SUI 95.47
SunLifeFinancial SLF 40.87
SuncorEnergy SU 34.76
s SunTrustBanks STI 64.62
Symantec SYMC 29.22
SynchronyFin SYF 37.59
Syngenta SYT 92.39
Synopsys SNPS 89.56
SynovusFin SNV 48.45
Sysco
SYY 61.98
T U V
Stock
Net
Sym Close Chg
0.78 UnitedTherap UTHR 135.61
0.13 UnitedHealth UNH 222.77
-0.13 UnivDisplay OLED 171.60
0.13 UniversalHealthB UHS 110.98
0.34 s UnumGroup UNM 56.65
VEON 3.82
-0.58 VEON
VER 7.91
1.24 VEREIT
VFC 72.60
0.09 VF
V
112.37
0.01 Visa
-0.95 VailResorts MTN 224.62
VALE 10.84
-0.46 Vale
-0.66 s ValeantPharm VRX 20.55
s ValeroEnergy VLO 87.20
Vantiv
VNTV 74.62
1.28 VarianMed VAR 111.18
VVC 69.38
-0.67 Vectren
VEDL 18.26
0.22 Vedanta
0.25 VeevaSystems VEEV 56.64
Ventas
VTR
63.32
0.19
VRSN 114.32
-0.23 VeriSign
-0.58 VeriskAnalytics VRSK 94.32
VZ 51.84
0.53 Verizon
-0.90 VertxPharm VRTX 141.68
0.37 Viacom B VIAB 29.46
1.42 Viacom A VIA 34.20
-0.87 VistraEnergy VST 18.11
VMW 121.09
0.88 VMware
VOD 31.25
0.39 Vodafone
0.26 VornadoRealty VNO 77.01
s
1.24 VoyaFinancial VOYA 46.32
0.27 VulcanMatls VMC 122.92
TAL Education TAL 30.32
TD Ameritrade AMTD 52.08
TE Connectivity TEL 95.04
Telus
TU 37.65
Ternium
TX 29.38
TIM Part
TSU 18.02
TJX
TJX 73.30
T-MobileUS TMUS 63.07
TRowePrice TROW 101.85
TaiwanSemi TSM 39.37
TakeTwoSoftware TTWO 108.23
Tapestry
TPR 41.39
TargaResources TRGP 46.24
Target
TGT 61.76
TataMotors TTM 31.84
TechnipFMC FTI 28.59
TeckRscsB TECK 23.27
TelecomArgentina TEO 37.65 0.17
TelecomItalia TI
8.94 0.09
TelecomItalia A TI.A 7.53 0.12 WABCO
WBC 144.65
TeledyneTech TDY 177.35 -3.23 WEC Energy WEC 69.17
Teleflex
TFX 252.18 -0.58 W.P.Carey WPC 70.14
WPP 91.77
TelefonicaBras VIV 15.04 -0.12 WPP
WAB 77.30
Telefonica TEF 10.03 -0.04 Wabtec
TelekmIndonesia TLK 30.80 0.06 Wal-Mart WMT 96.93
Tenaris
TS 30.74 0.99 WalgreensBoots WBA 71.88
Teradyne
TER 40.46 -0.05 WasteConnections WCN 68.83
Tesla
TSLA 328.91 13.78 s WasteMgt WM 85.37
WAT 197.76
TevaPharm TEVA 16.44 0.38 Waters
WSO 168.23
TexasInstruments TXN 98.83 0.81 Watsco
W 74.59
Textron
TXT 54.63 -0.21 Wayfair
WB 104.00
ThermoFisherSci TMO 189.49 1.53 Weibo
ThomsonReuters TRI 44.35 0.09 WellCareHealth WCG 205.50
ThorIndustries THO 150.15 -0.95 WellsFargo WFC 58.87
3M
MMM 239.30 1.17 Welltower HCN 65.92
Tiffany
TIF 96.34 0.59 WestPharmSvcs WST 99.08
TimeWarner TWX 90.82 0.11 WestarEnergy WR 56.75
Toll Bros
TOL 47.74 -0.13 WestAllianceBcp WAL 57.94
Torchmark TMK 89.63 -0.32 WesternDigital WDC 81.20
Toro
TTC 65.22 -0.71 WesternGasEquity WGP 36.97
TorontoDomBk TD 56.55 -0.08 WesternGasPtrs WES 47.35
Total
TOT 55.67 -0.01 WesternUnion WU 19.53
TotalSystem TSS 76.62 0.04 s WestlakeChem WLK 100.64
ToyotaMotor TM 123.93 -0.52 WestpacBanking WBK 23.83
TractorSupply TSCO 67.15 -0.51 WestRock WRK 64.42
TransCanada TRP 48.87 -0.09 Weyerhaeuser WY 35.44
TransDigm TDG 274.38 -0.24 WheatonPrecMet WPM 21.25
TransUnion TRU 55.71 0.10 Whirlpool WHR 167.87
WMB 28.90
Travelers
TRV 133.16 -0.59 Williams
Trimble
TRMB 41.19 -0.02 WilliamsPartners WPZ 37.39
s TurkcellIletism TKC 9.90 0.21 WillisTowers WLTW 155.28
WIT 5.36
TurquoiseHill TRQ 3.06 0.05 Wipro
21stCenturyFoxA FOXA 33.66 0.36 WooriBank WF 42.88
WDAY 104.81
21stCenturyFoxB FOX 33.27 0.30 Workday
Twitter
TWTR 22.05 0.95 Wyndham WYN 112.74
TylerTech TYL 182.89 -0.76 s WynnResorts WYNN 164.26
TysonFoods TSN 82.60 -1.02 XPO Logistics XPO 76.40
UBS Group UBS 17.80 0.32 XcelEnergy XEL 51.44
XRX 29.59
UDR
UDR 39.23 0.20 Xerox
XLNX 68.38
UGI
UGI 49.40 -0.20 Xilinx
s US Foods USFD 30.95 -0.05 Xylem
XYL 67.28
YPF 22.20
UltaBeauty ULTA 216.14 -8.40 YPF
UltSoftware ULTI 214.77 0.89 YY
YY 107.34
UltraparPart UGP 21.55 0.09 Yandex
YNDX 33.29
Unilever
UN 57.43 -0.26 YumBrands YUM 82.45
Unilever
UL 56.15 -0.16 YumChina YUMC 40.80
UnionPacific UNP 129.05 -0.06 ZTO Express ZTO 15.52
UnitedContinental UAL 64.24 0.69 ZayoGroup ZAYO 35.30
UnitedMicro UMC 2.53 0.06 ZebraTech ZBRA 107.71
UPS B
UPS 118.05 -1.51 Zillow A
ZG 40.85
s UnitedRentals URI 163.82 -0.18 Zillow C
Z
40.85
US Bancorp USB 55.27 -0.09 ZimmerBiomet ZBH 113.51
US Steel
X
33.42 0.19 ZionsBancorp ZION 49.94
UnitedTech UTX 123.30 0.49 Zoetis
ZTS 71.77
52-Wk %
Sym Hi/Lo Chg
LutherBurbank LBC
LyondellBasell LYB
MGIC Investment MTG
Maximus
MMS
MerchantsBancorp MBIN
Meredith
MDP
MeridianBank MRBK
IndxPlus 03-1 IPB
Moelis
MC
Morningstar
MORN
NCI BuildingSys NCS
Nasdaq
NDAQ
NationalVision EYE
NationwideMaxDivUS MXDU
NektarTherap NKTR
NeptuneTech NEPT
NetApp
NTAP
NewRelic
NEWR
NewtekBusSvcs NEWT
NextEraEnergy NEE
Nike
NKE
NovoNordisk
NVO
PSBusParksPfdY PSBpY
ParkerHannifin PH
Paychex
PAYX
PeabodyEnergy BTU
PerformanceFood PFGC
Phillips66
PSX
PolarisIndustries PII
ProPetro
PUMP
PublicStoragePfD PSApD
PublicStoragePfB PSApB
QuantaServices PWR
Quanterix
QTRX
RadianGroup RDN
RayonierAdvPfdA RYAMpA
RayonierAdvMatls RYAM
RedLionHotels RLH
RedRockResorts RRR
RegionsFin
RF
Remark
MARK
RiverNorthMktPfA RMPLp
S&P Global
SPGI
SabineRoyalty SBR
ScottsMiracleGro SMG
SecondSightWt EYESW
ServiceCorp
SCI
ServiceMaster SERV
ShakeShack
SHAK
ShoreBancshares SHBI
SkechersUSA SKX
12.30
108.05
15.64
71.19
21.97
72.08
19.24
28.91
49.05
95.46
21.20
80.14
35.03
26.29
56.35
1.95
58.99
60.85
19.09
159.35
62.22
52.60
24.85
193.49
69.26
35.28
31.80
100.25
134.67
19.67
25.41
26.69
39.53
19.34
22.66
139.21
19.58
9.45
32.67
17.18
10.34
25.55
172.30
45.08
102.78
0.79
38.10
50.65
46.90
18.49
36.51
2.6
0.3
0.3
0.1
4.4
0.2
6.6
-0.9
-0.8
2.5
3.0
0.6
5.5
1.3
2.3
16.1
0.5
4.8
2.6
0.1
1.0
0.6
0.4
-0.5
...
2.8
0.6
0.2
-3.1
0.3
-0.2
...
-0.6
5.0
0.9
2.9
3.1
2.2
1.8
-0.6
10.4
0.4
0.3
2.0
1.2
10.2
0.2
0.1
0.4
-1.1
2.2
-0.04
-0.21
0.12
0.11
-0.30
-0.31
-0.70
-0.04
-1.43
-0.06
0.05
-0.35
-0.43
-0.03
-1.36
0.02
-0.09
1.66
0.14
0.85
0.07
-0.12
-0.22
-0.34
0.79
-0.37
0.18
-0.33
2.12
0.99
-0.04
-0.10
-0.08
-0.04
0.13
-0.06
1.38
-0.35
0.23
0.83
1.17
-0.10
-0.40
-0.61
0.25
0.31
0.04
0.35
0.88
0.43
0.42
0.24
-0.40
0.27
0.24
-0.91
0.92
KT
KT 15.49
KSCitySouthern KSU 110.63
Kellogg
K
66.55
s KeyCorp
KEY 19.73
KeysightTechs KEYS 42.23
KilroyRealty KRC 75.38
KimberlyClark KMB 118.49
KimcoRealty KIM 18.11
KinderMorgan KMI 17.96
Knight-Swift KNX 42.76
Kohl's
KSS 50.46
KoninklijkePhil PHG 38.28
KoreaElcPwr KEP 17.58
KraftHeinz KHC 78.37
Kroger
KR 26.58
Kyocera
KYO 68.79
LATAMAirlines LTM 12.18
L Brands
LB 57.99
LG Display LPL 13.59
LINE
LN 44.00
s LKQ
LKQ 40.34
L3 Tech
LLL 193.41
LabCpAm LH 155.79
LamResearch LRCX 185.56
LamarAdv LAMR 76.91
s LambWeston LW 56.88
s LasVegasSands LVS 71.07
Lazard
LAZ 50.69
Lear
LEA 175.29
Leggett&Platt LEG 46.12
s Leidos
LDOS 64.29
Lennar A
LEN 61.68
Lennar B
LEN.B 49.59
LennoxIntl LII 206.50
LeucadiaNatl LUK 26.06
LibertyBroadbandA LBRDA 85.56
LibertyBroadbandC LBRDK 86.28
LibertyGlobal C LBTYK 30.71
LibertyGlobal A LBTYA 31.55
LibertyLiLAC A LILA 21.54
LibertyLiLAC C LILAK 21.26
LibertyQVC A QVCA 24.52
LibertyVenturesA LVNTA 57.42
LibertyFormOne C FWONK 35.36
LibertyFormOne A FWONA 33.77
LibertyBraves A BATRA 21.89
LibertyBraves C BATRK 22.06
LibertySirius C LSXMK 42.45
LibertySirius A LSXMA 42.63
LibertyProperty LPT 44.22
EliLilly
LLY 86.67
LincolnElectric LECO 92.29
s LincolnNational LNC 77.17
LionsGate A LGF.A 31.33
LionsGate B LGF.B 29.68
LiveNationEnt LYV 43.59
LloydsBanking LYG 3.62
LockheedMartin LMT 316.17
Loews
L
50.05
52-Wk %
Sym Hi/Lo Chg Stock
SkyWest
SKYW
SmithMicro
SMSI
SpiritRealtyPfdA SRCpA
SterlingBancorp SBT
Strats GSG GJS GJS
SumitomoMits SMFG
SunComms
SUI
SunTrustBanksWtA STI.WS.A
SunTrustBanks STI
SuperiorUniform SGC
TransportadGas TGS
TurkcellIletism TKC
US Concrete
USCR
US Foods
USFD
UnitedRentals URI
UnitedSecBcshrs UBFO
USBrentOilFd BNO
UnivLogistics ULH
UnumGroup
UNM
UTStarcom
UTSI
ValeantPharm VRX
ValeroEnergy VLO
VikingTheraWt VKTXW
VikingTherap VKTX
VoyaFinancial VOYA
WasteMgt
WM
WestlakeChem WLK
WildHorseResource WRD
WillScotWt
WSCWW
Wingstop
WING
Winnebago
WGO
WW Ent
WWE
WynnResorts WYNN
53.90
2.50
24.75
13.79
20.49
8.38
95.83
31.97
65.50
26.94
23.30
9.95
86.35
31.50
165.65
11.00
17.50
24.45
57.55
6.20
20.73
88.12
2.74
4.28
47.04
85.87
101.66
17.96
1.15
41.47
56.85
30.78
165.23
2.6
10.7
-0.1
1.0
0.7
1.6
-0.1
1.5
-0.9
-1.2
5.2
2.2
-4.0
-0.2
-0.1
-0.9
2.0
3.9
-1.5
13.9
4.3
-0.5
-5.4
-2.7
0.4
0.9
0.9
1.6
5.7
1.8
-1.2
1.2
3.0
Lows
A-MarkPrecMetals AMRK
ANGI Homesvcs ANGI
AchillionPharm ACHN
Affimed
AFMD
Alexanders
ALX
AmeriWt
AMRHW
AmericanLorain ALN
AnavexLifeSci AVXL
AquaMetals
AQMS
AquinoxPharm AQXP
Arcimoto
FUV
Argan
AGX
Arsanis
ASNS
AsankoGold
AKG
AurynResources AUG
BellatrixExplor BXE
Bsquare
BSQR
CMSevenStarAcqn CMSS
CMSevenStarWt CMSSW
CPFLEnergia
CPL
CPI Card
PMTS
CTI BioPharma CTIC
Curo
CURO
12.51 5.0
10.54 -2.1
2.85 -1.4
1.30 -23.1
392.22 0.8
0.25 -58.8
0.18 -9.1
3.01 -10.6
1.84 -5.1
10.05 -4.6
2.54 37.9
42.33 -7.6
12.21 -12.5
0.50 0.5
1.32 -2.1
1.49 -3.3
4.10 2.3
9.59 -0.4
0.24 1.9
10.74 -3.4
0.75 -2.8
2.61 -1.9
13.80 -2.5
R S
0.63
0.21
-0.77
2.14
1.07
0.38
0.33
0.17
0.80
-1.53
-1.25
0.64
3.76
-2.45
-0.44
-0.40
-0.55
-0.01
-1.03
-0.27
0.29
1.05
0.14
0.86
0.08
...
0.01
0.26
-1.83
0.35
0.51
-0.18
0.12
-0.55
-0.04
-0.31
4.72
-0.87
0.24
...
-0.16
-0.91
0.13
1.49
0.40
-0.87
-0.01
0.24
0.88
-0.20
0.63
0.67
0.13
-0.99
-0.11
0.12
-0.44
-0.47
-0.90
0.34
0.68
0.71
Amount
Amount
Payable /
Payable /
-0.59 Company
Symbol Yld % New/Old Frq
Company
Symbol Yld % New/Old Frq
Record
Record
-1.78
Initial
-0.18 Increased
ERIE 2.8 .84 /.7825 Q
SRCpA
0.16 Erie Indemnity Cl A
Jan23 /Jan08
Spirit Realty 6% Pfd A
.36667
Dec29 /Dec19
GGG 0.4 .1325 /.12 Q
-0.50 Graco Inc
Feb07 /Jan22
Stocks
VAC
1.2 .40 /.35 Q
Jan04 /Dec21
-0.47 MarriottVacations
GGG
Graco Inc
3:1
Dec27 /Dec28
MORN
1.1 .25 /.23 Q
Jan31 /Jan05
-0.16 Morningstar
NEOG
Neogen
4:3
Dec29 /Jan02
BFS 3.3
.52 /.51 Q
Jan31 /Jan17
-0.04 Saul Centers
SYK 1.2 .47 /.425 Q
Jan31 /Dec29
1.77 Stryker Corp
1.61
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
Reduced
0.84
GE 2.7
General Electric
.12 /.24 Q
Jan25 /Dec27
S2:1: stock split and ratio; SO: spin-off.
0.78
0.38
0.37
-0.27
Net YTD
Net YTD
0.94
Fund
NAV Chg %Ret Fund
NAV Chg %Ret
0.73
PIMCO Funds D
TotIntBdIdxAdm 22.06 +0.02 2.8
0.71
NA
... NA TotIntlAdmIdx r 30.10 +0.09 24.6
IncomeFd
0.12
Data provided by
TotStAdml 66.59 +0.17 20.3
PIMCO Funds Instl
0.29
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share
14.27 +0.03 24.0
NA
... NA TxMIn r
IncomeFd
0.30 classes. NAV is net asset value. Percentage performance figures are total returns,
41.36 +0.11 16.3
ValAdml
PIMCO Funds P
0.29 assuming reinvestment of all distributions and after subtracting annual expenses.
-0.56 Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change
NA
... NA WdsrllAdml 71.26 +0.27 15.5
IncomeP
WellsIAdml 66.21 +0.07 9.6
Price Funds
0.22 in NAV from previous trading day. YTD%RET is year-to-date return. f-Previous day’s
-0.10 quotation. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. tBlChip
NA
... NA WelltnAdml 75.41 +0.16 14.0
-1.37 Footnotes p and r apply. NA-Not available due to incomplete price, performance or
NA
... NA WndsrAdml 81.30 +0.18 18.4
CapApp
cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-0.23
NA
... NA VANGUARD FDS
EqInc
Fund didn’t exist at start of period.
27.30 +0.07 18.3
-0.28
NA
... NA DivdGro
EqIndex
0.24
NA
... NA HlthCare r 214.29 +0.77 19.2
Growth
Monday, December 11, 2017
-0.01
NA
... NA INSTTRF2020 22.81 +0.04 13.3
HelSci
Net YTD
Net YTD
Net YTD InstlCapG
0.32
NA
... NA INSTTRF2025 23.12 +0.04 15.0
NAV Chg %Ret Fund
NAV Chg %Ret Fund
NAV Chg %Ret
0.21 Fund
NA
... NA INSTTRF2030 23.34 +0.04 16.4
IntlStk
52-Wk %
Sym Hi/Lo Chg
ChemoCentryx CCXI
ChinaMobile
CHL
ContraVirPharm CTRV
CoreCivic
CXW
DynagasLNG DLNG
EP Energy
EPE
8x8
EGHT
ErytechPharma ERYP
EssaPharma
EPIX
Essendant
ESND
Evogene
EVGN
FibrocellScience FCSC
Fred's
FRED
GeniusBrands GNUS
GigCapital
GIG.U
Glaukos
GKOS
Goldcorp
GG
GreatPanthrSlvr GPL
HeatBiologics HTBX
iBio
IBIO
IconixBrand
ICON
ImmunoCellular IMUC
Intersections INTX
Intevac
IVAC
JMU
JMU
JonesEnergy
JONE
Libbey
LBY
LongIslandIcedTea LTEA
MaidenHldg6.7%PfdD MHpD
MaidenHldgsPfdC MHpC
MaidenHldgsPfdA MHpA
Medigus
MDGS
MedleyCapital MCC
MilestoneSci
MLSS
MongoDB
MDB
MotorcarParts MPAA
Netlist
NLST
NewSeniorInvt SNR
OnTrackInnov OTIV
OnconovaTherap ONTX
PhaseRx
PZRX
RMG Networks RMGN
RexEnergy
REXX
RubiconProject RUBI
SandRidgePermian PER
Sanmina
SANM
SkylineMedical SKLN
SparkTherap
ONCE
StellarBiotech SBOT
SyrosPharm
SYRS
TOR Minerals TORM
TPG PaceEnergy TPGE.U
TeleNav
TNAV
US Geothermal HTM
US12mthNtlGas UNL
UnivElectro
UEIC
Vivus
VVUS
WideOpenWest WOW
YingliGreenEner YGE
-0.60
-1.14
-1.10
-0.58
-0.84
0.07
-0.02
-0.75
-0.23
-0.87
0.06
0.85
-0.40
-0.14
-0.80
0.29
0.24
0.58
0.01
1.34
-1.84
0.75
-1.93
0.17
0.20
0.36
1.52
0.03
0.02
0.17
-2.96
W X Y Z
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Net
Sym Close Chg
Net
Sym Close Chg
n-
Stock
no
Monday, December 11, 2017
Stock
ly
.
How to Read the Stock Tables
5.72 -1.0
48.70 -0.5
0.35 -12.2
22.05 -2.1
11.37 -3.3
1.54 2.6
14.05 -2.1
18.18 -4.7
0.20 -9.0
8.31 -2.0
3.42 -5.3
0.61 -3.7
3.70 5.6
2.61 -8.6
9.94 -0.5
23.08 -4.3
11.78 -1.0
1.08 -0.9
0.33 -7.8
0.14 -8.1
1.36 5.1
0.17 -15.8
1.95 -10.4
6.20 -0.7
0.92 -2.1
0.79 -5.1
5.81 1.5
1.70 -15.6
21.54 -3.5
23.67 -1.8
24.71 -0.2
1.40 -2.3
5.43 -4.1
0.95 -13.6
24.62 4.3
23.92 -0.8
0.28 -2.2
7.66 -1.3
1.01 -4.8
1.36 -7.4
0.50 -44.9
0.79 -5.0
1.51 -3.7
1.69 2.3
2.55 ...
30.75 -0.2
1.11 -5.0
41.06 -35.0
0.94 -2.7
6.30 -31.7
5.15 0.9
10.05 ...
4.53 -5.2
3.40 -1.4
8.90 1.1
47.90 0.2
0.55 -2.1
8.76 -0.6
1.73 -6.5
Dividend Changes
Dividend announcements from December 11.
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
American Century Inv
46.13 +0.21 32.3
Ultra
American Funds Cl A
32.44 +0.10 20.9
AmcpA p
AMutlA p 42.42 +0.13 16.9
BalA p
27.96 +0.05 14.4
12.90 -0.01 3.2
BondA p
63.76 +0.15 13.4
CapIBA p
CapWGrA 52.98 +0.13 22.7
57.03 +0.16 29.1
EupacA p
64.97 +0.17 21.6
FdInvA p
GwthA p
52.44 +0.17 24.7
10.40
... 6.6
HI TrA p
42.33 +0.14 18.2
ICAA p
IncoA p
23.78 +0.05 12.2
45.23 +0.06 28.0
N PerA p
48.24 +0.36 34.2
NEcoA p
NwWrldA 66.88 +0.32 30.0
57.25 +0.16 24.5
SmCpA p
13.01 -0.04 5.1
TxExA p
WshA p
46.90 +0.12 18.9
Baird Funds
... 4.0
AggBdInst 10.88
CorBdInst 11.24
... 4.5
BlackRock Funds A
GlblAlloc p 20.48 +0.04 12.7
BlackRock Funds Inst
22.69 +0.06 16.3
EqtyDivd
20.62 +0.04 12.9
GlblAlloc
HiYldBd
7.81
... 7.8
... 4.5
StratIncOpptyIns 9.94
Bridge Builder Trust
CoreBond
NA
... NA
Dimensional Fds
... 2.2
5GlbFxdInc 11.02
EmgMktVa 30.01 +0.08 27.0
EmMktCorEq 22.38 +0.12 30.8
IntlCoreEq 14.30 +0.02 24.8
IntlVal
20.13 +0.08 22.9
21.54 +0.04 25.9
IntSmCo
23.36 +0.07 23.5
IntSmVa
US CoreEq1 22.81 +0.04 19.8
US CoreEq2 21.64 +0.03 17.6
37.00 -0.09 10.1
US Small
US SmCpVal 39.30 -0.07 5.6
US TgdVal 25.68 +0.01 7.8
40.47 +0.09 17.0
USLgVa
Dodge & Cox
NA
... NA
Balanced
NA
... NA
GblStock
Income
13.85 -0.01 4.2
NA
... NA
Intl Stk
NA
... NA
Stock
DoubleLine Funds
TotRetBdI 10.64 -0.01 3.6
Edgewood Growth Instituti
EdgewoodGrInst 29.96 +0.02 34.9 Income C t
Federated Instl
StraValDivIS 6.13 +0.02 14.3
Fidelity
500IdxInst
500IdxInstPrem
500IdxPrem
ExtMktIdxPrem r
IntlIdxPrem r
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
93.37 +0.30
93.37 +0.30
93.37 +0.30
64.11 +0.01
43.50 +0.09
14.31 +0.04
77.31 +0.21
77.29 +0.20
11.58 -0.01
Fidelity Advisor I
NwInsghtI 31.86 +0.07
Fidelity Freedom
FF2020
16.91 +0.03
14.65 +0.03
FF2025
FF2030
18.40 +0.05
Freedom2020 K 16.92 +0.04
Freedom2025 K 14.65 +0.03
Freedom2030 K 18.41 +0.05
Freedom2035 K 15.48 +0.05
Freedom2040 K 10.88 +0.03
Fidelity Invest
Balanc
23.62 +0.04
87.47 +0.34
BluCh
122.26 +0.33
Contra
122.16 +0.32
ContraK
10.30 +0.02
CpInc r
39.50 +0.13
DivIntl
186.59 +0.94
GroCo
GrowCoK 186.56 +0.94
7.92 -0.01
InvGB
InvGrBd
11.27
...
53.55 +0.01
LowP r
...
LowPriStkK r 53.49
103.77 +0.21
MagIn
110.13 +0.55
OTC
23.28 +0.03
Puritn
SrsEmrgMkt 21.35 +0.18
SrsGroCoRetail 18.33 +0.09
SrsIntlGrw 16.39 +0.03
SrsIntlVal
10.89 +0.03
...
TotalBond 10.66
First Eagle Funds
61.06 +0.19
GlbA
FPA Funds
FPACres
35.37 +0.18
FrankTemp/Frank Adv
IncomeAdv 2.34
...
FrankTemp/Franklin A
CA TF A p
7.46 -0.03
2.36
...
IncomeA p
RisDv A p 60.42 +0.09
FrankTemp/Franklin C
21.1
21.1
21.1
16.8
23.2
21.0
20.3
20.3
3.2
27.6
14.6
15.7
18.5
NS
NS
NS
NS
NS
16.0
35.6
32.0
32.1
11.1
25.0
36.4
36.5
3.7
4.1
18.5
18.6
25.5
38.9
18.0
36.0
37.2
28.0
18.9
4.0
12.5
9.7
7.7
5.7
7.5
18.8
2.40 +0.01
FrankTemp/Temp A
GlBond A p 12.21 -0.02
Growth A p 27.32 +0.11
FrankTemp/Temp Adv
GlBondAdv p 12.16 -0.02
Harbor Funds
CapApInst 77.13 +0.43
70.91 +0.36
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
11.50 +0.02
EqIncA
John Hancock Class 1
LSBalncd
16.15 +0.02
17.37 +0.03
LSGwth
John Hancock Instl
...
DispValMCI 24.65
JPMorgan Funds
MdCpVal L 41.21 -0.04
JPMorgan R Class
11.62 -0.01
CoreBond
Lazard Instl
EmgMktEq 19.51 +0.11
Loomis Sayles Fds
LSBondI
14.17 +0.01
Lord Abbett A
...
ShtDurIncmA p NA
Lord Abbett F
NA
...
ShtDurIncm
Metropolitan West
10.66
...
TotRetBd
TotRetBdI 10.65 -0.01
...
TRBdPlan 10.03
MFS Funds Class I
ValueI
41.91 +0.04
MFS Funds Instl
25.52 +0.05
IntlEq
Mutual Series
32.79 +0.13
GlbDiscA
Oakmark Funds Invest
34.63 -0.01
EqtyInc r
Oakmark
86.87 +0.17
OakmrkInt 28.91 +0.02
Old Westbury Fds
LrgCpStr
15.13 +0.05
Oppenheimer Y
41.64 +0.41
DevMktY
43.27 -0.06
IntGrowY
Parnassus Fds
42.87 +0.13
ParnEqFd
PIMCO Fds Instl
AllAsset
NA
...
10.24 -0.02
TotRt
PIMCO Funds A
IncomeFd
NA
...
7.8 IntlValEq
4.3
16.0
4.5
36.2
21.4
NA
10.1
14.4
18.2
14.8
13.2
3.7
22.9
7.2
NA
NA
3.0
3.2
3.3
17.0
26.0
9.0
13.8
19.9
27.4
17.9
31.0
24.8
16.6
NA
4.7
NA
NA
...
NA
...
NA
...
NA
...
9.48 -0.01
NA
...
NA
...
NA
...
NA
...
NA
...
NA
...
NA
...
PRIMECAP Odyssey Fds
37.70
+0.09
Growth r
Principal Investors
DivIntlInst 13.92 +0.03
Prudential Cl Z & I
14.54 +0.01
TRBdZ
Schwab Funds
S&P Sel
41.67 +0.13
TIAA/CREF Funds
19.52 +0.05
EqIdxInst
IntlEqIdxInst 19.87 +0.04
Tweedy Browne Fds
28.60 +0.05
GblValue
VANGUARD ADMIRAL
500Adml 246.54 +0.79
34.74 +0.05
BalAdml
CAITAdml 11.77 -0.04
CapOpAdml r160.18 +0.66
36.97 +0.28
EMAdmr
EqIncAdml 78.89 +0.25
ExplrAdml 97.26 +0.01
ExtndAdml 84.22 +0.02
GNMAAdml 10.47 -0.01
GrwthAdml 72.28 +0.28
HlthCareAdml r 90.41 +0.33
HYCorAdml r 5.92
...
25.84 -0.03
InfProAd
IntlGrAdml 95.56 +0.63
ITBondAdml 11.38 -0.01
ITIGradeAdml 9.77 -0.01
LTGradeAdml 10.71 -0.02
MidCpAdml 190.90 +0.07
MuHYAdml 11.42 -0.04
MuIntAdml 14.12 -0.04
MuLTAdml 11.67 -0.05
MuLtdAdml 10.91 -0.01
...
MuShtAdml 15.74
PrmcpAdml r140.05 +0.46
REITAdml r 119.03 -0.10
SmCapAdml 70.31 -0.08
...
STBondAdml 10.39
STIGradeAdml 10.64 -0.01
TotBdAdml 10.75 -0.01
MCapGro
MCapVal
N Horiz
N Inc
OverS SF r
R2020
R2025
R2030
R2035
R2040
Value
NA
NA
NA
NA
3.7
NA
NA
NA
NA
NA
NA
NA
31.6
26.5
6.1
21.1
20.3
23.5
14.2
21.1
13.3
4.7
28.9
26.6
17.7
21.0
16.8
1.9
27.3
19.3
6.8
2.3
41.9
3.8
4.1
10.7
18.3
7.5
4.4
6.0
2.2
1.2
28.7
4.6
14.9
1.2
2.1
3.4
INSTTRF2035
INSTTRF2040
INSTTRF2045
IntlVal
LifeCon
LifeGro
LifeMod
PrmcpCor
SelValu r
STAR
STIGrade
TgtRe2015
TgtRe2020
TgtRe2025
TgtRe2030
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
23.57 +0.04
23.80 +0.05
23.96 +0.05
39.82 +0.08
20.06 +0.01
33.71 +0.07
27.29 +0.04
27.80 +0.09
33.92 +0.06
27.61 +0.05
10.64 -0.01
16.08 +0.02
31.99 +0.04
18.79 +0.03
33.98 +0.06
20.90 +0.04
36.05 +0.08
22.66 +0.05
36.45 +0.09
13.67
...
11.03
...
27.33 +0.03
43.66 +0.09
40.15 +0.15
VANGUARD INDEX FDS
500
246.49 +0.79
ExtndIstPl 207.84 +0.05
SmValAdml 56.85 -0.07
TotBd2
10.71 -0.01
17.99 +0.05
TotIntl
TotSt
66.55 +0.17
VANGUARD INSTL FDS
BalInst
34.74 +0.04
DevMktsIndInst 14.29 +0.03
DevMktsInxInst 22.34 +0.05
ExtndInst
84.22 +0.02
GrwthInst 72.29 +0.29
InPrSeIn
10.53 -0.01
243.23 +0.77
InstIdx
243.25 +0.77
InstPlus
InstTStPlus 59.73 +0.15
MidCpInst 42.17 +0.01
MidCpIstPl 207.98 +0.07
SmCapInst 70.31 -0.08
STIGradeInst 10.64 -0.01
10.75 -0.01
TotBdInst
TotBdInst2 10.71 -0.01
TotBdInstPl 10.75 -0.01
TotIntBdIdxInst 33.10 +0.02
TotIntlInstIdx r120.37 +0.37
TotItlInstPlId r120.39 +0.36
TotStInst
66.60 +0.17
41.36 +0.11
ValueInst
Western Asset
CorePlusBdI NA
...
17.9
19.4
20.0
25.4
10.4
18.0
14.1
25.3
17.9
17.4
2.0
10.8
13.2
14.9
16.4
17.8
19.3
20.0
19.9
8.0
2.7
9.6
13.9
15.4
21.0
16.8
10.7
3.3
24.5
20.2
13.3
24.0
24.0
16.8
27.3
2.4
21.1
21.1
20.3
18.4
18.4
14.9
2.1
3.4
3.3
3.4
2.8
24.6
24.6
20.3
16.3
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.
B10 | Tuesday, December 12, 2017
* ***
THE WALL STREET JOURNAL.
BANKING & FINANCE
TAX
STREETWISE | By James Mackintosh
Looking for a Productivity Miracle
bots and machine learning
are being adopted, capital
spending is picking up and
tight labor markets give
companies an incentive to
find better ways of working.
But productivity defies
forecasters, and the lesson of
the past is to be humble.
This is a story of how little
anyone really understands
about what moves productivity, even though it is the key
to long-run prosperity—and
to what happens to inflation
and share and bond prices.
Labor productivity is real
economic output divided by
A
gainst this, corporate
investment is finally
picking up, millennials
are in their prime working
years and interest rates are
rising, with futures traders
certain the Federal Reserve
will increase rates again on
Wednesday. Technologies
such as drones and self-driving vehicles are being adopted quickly, while memories of Lehman Brothers’
collapse have faded.
Unfortunately, economists
have been unsuccessful at
finding reliable links between any of these factors
and productivity.
“As far as I’m concerned
productivity is a miracle,”
says Neal Soss, vice chairman in research at Credit
Suisse and a former assistant to Fed Chairman Paul
Volcker. “We just don’t really
know where it comes from.”
This uncertainty may
leave the future clouded, but
it also leaves open the idea
that productivity might pick
up—an idea that many have
problem for forecasters is
that technological change
comes in unpredictable
waves. “In the long run productivity’s all about innovation. That is especially very
difficult to forecast,” he says.
“The best we can do is go
back over a very long history
and take an average.”
Working Harder, Not Smarter
Predictions of U.S. labor productivity growth have been too optimistic
3.5%
3.0
Actual productivity change
Forecasts
Recessions
2.5
2.0
1.5
T
he latest innovation
wave might never arrive in the economic
data. After all, the technology has brought us Twitter
trolls, full-time bitcoin traders and search engine optimization executives, none of
which obviously help productivity.
But productivity leapt 3%
in the third quarter of this
year, and while quarterly
data are volatile, it is plausible that a productivity
pickup is coming soon. It
will be critical to how both
the market and the Fed
should react to signs of wage
rises. Without productivity
growth, higher wages are
bad news for profits. Either
companies accept lower margins, immediately bad for
the stock price, or they pass
on higher wage costs into
prices, pushing up inflation
and prompting the Fed to
raise rates more quickly.
With productivity improvements that nasty choice can
be avoided, as the gains can
be passed on to workers
while maintaining margins.
Forecasters have spent a
decade unsuccessfully predicting that productivity
growth is about to return, so
it feels rather optimistic to
predict it now. A lesson
many economists take from
the past 10 years is that productivity has permanently
slowed. A better lesson is
that it is hard to forecast,
and investors need to be
open-minded about what will
happen.
1.0
0.5
0
–0.5
2000 ’02
’04
’06
’08
’10
’12
’14
’16
’18
U.S. labor productivity, five-year annualized change
5%
4
3
2
1
0
1965 1970
1980
1990
2000
2010
Sources: OECD (forecasts, growth); Thomson Reuters Datastream (five-year growth)
THE WALL STREET JOURNAL.
abandoned after years of disappointment.
For an example, look back
to the mid-1990s, the last
time overall U.S. productivity
was lower than last year’s
0.18%, according to the Organization for Economic Cooperation and Development.
Business productivity last
year equaled the grim year
of 1993, according to the Bureau of Labor Statistics, although was a little worse in
2011, the year the U.S. lost
its top credit rating.
The first half of the 1990s
had a “productivity paradox”
of technological change be-
ly
.
The latest wave of
business innovation
may never arrive in
the economic data.
the numbers of hours
worked, but it is easiest to
understand for a business:
How many gingerbread
lattes can each Starbucks
barista churn out per hour?
Give them a better machine
or better training and the
productivity rises.
By extension the same applies to the wider economy.
Many economists point to
years of weak corporate investment and a dire education system for poor U.S.
productivity growth. Making
it worse is an aging workforce, “zombie” companies
kept alive by low interest
rates and a debt overhang
from the 2008 financial crisis. A shift from high-productivity manufacturing to
low-productivity service sectors hurts the overall numbers, too.
ing highly visible but not
showing up in the economic
data. Just as with the past
decade’s development of
smartphones, apps, financial
technology and machine
learning, it took time for laptops and personal computers
to increase output. It happened suddenly, with productivity leaping 2.5% in
1996 and growing that rapidly on average over the next
decade, on OECD numbers.
Between 1996 and 2000, U.S.
stocks had their best five
years since the 1920s.
OECD Senior Economist
Yvan Guillemette says a big
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Economists
are often baffled by the
gyrations of
the stock market, but at the
moment shareholders and
the economic profession simply disagree on one of the
biggest assumptions forecasters have to make: productivity growth.
Shares of companies with
disruptive technologies have
soared on the basis that they
are shaking up industry after
industry, and fat profits lie
ahead. The flip side of replacing workers with robots
or algorithms should be
sharply improved labor productivity, but after a decade
of wrongly predicting a
pickup in productivity economists have scaled back forecast gains.
Perhaps 2018 will be the
year productivity begins to
pick up. Technologies such
as speech recognition, chat-
HSBC Set Free of Deferred-Prosecution Pact
REUTERS
no
LONDON—HSBC Holdings
PLC is to be released from an
agreement that let it avoid
U.S. criminal charges in 2012,
after it was judged to have
sufficiently improved its systems to keep out financial
criminals.
The expiration of the fiveyear
deferred-prosecution
agreement with the U.S. Justice Department is a win for
the bank and Chief Executive
Stuart Gulliver, who had
sought to have the case
cleared before he retires in
February. It also heralds the
end of a contentious relationship between HSBC and an independent monitor installed at
the bank as part of the pact.
“HSBC lived up to all of its
commitments, and, therefore,
under the DPA, the Department of Justice will file a motion with the U.S. District
Court for the Eastern District
of New York seeking the dismissal of the charges deferred
by the agreement,” the bank
said in a statement Monday.
The DOJ wasn’t immediately available for comment.
In December 2012, HSBC
paid a then-record $1.9 billion
to settle allegations it failed to
spot the laundered proceeds of
drug trafficking in Mexico and
that its employees stripped
data from transactions involving sanctioned nations such as
Iran to avoid detection.
n-
BY MARGOT PATRICK
CEO Stuart Gulliver sought to have agreement with U.S. cleared before his retirement in February.
HSBC admitted wrongdoing
but avoided a guilty plea or
prosecution of its executives.
A 2016 congressional report
on the settlement found that
Justice Department officials
overruled internal recommendations to pursue a criminal
prosecution, in part to avoid
disrupting the global financial
system. The DOJ at the time of
the report said it was committed to holding individuals and
corporations responsible for
their conduct.
To qualify for the corporate
probation in 2012, HSBC
agreed to bolster its compli-
ance controls and has spent
billions of dollars adding staff
and standardizing and connecting its systems. It overhauled its executive team and
corporate structure before the
agreement and tied annual bonuses for Mr. Gulliver and
other executives to the compli-
ance effort.
Failings in its systems continued to be found by the
monitor, former prosecutor
Michael Cherkasky, making it
far from a given that HSBC’s
agreement would expire without an extension. The monitor’s 2016 annual report to the
DOJ found “instances of potential financial crime” and
questioned whether HSBC was
meeting all of its obligations
under the pact.
Standard Chartered PLC,
which entered shorter delayedprosecution agreements with the
DOJ and the New York district
attorney the same year over
sanctions compliance, has had
its agreements extended twice,
most recently in November.
The monitorship turned out
to be one of the toughest conditions of the agreement for
HSBC, as hundreds of staff and
consultants
from
Mr.
Cherkasky’s compliance firm,
Exiger LLC, moved through
HSBC’s offices to assist with
oversight and systems checks.
The HSBC-Cherkasky relationship was almost immediately
tense, people familiar with the
matter said, with frequent
clashes and frustration over
the monitor’s downbeat assessment of HSBC’s progress
In the meantime, HSBC continued getting regulatory slaps
over its anti-money-laundering
controls and faced new allegations it let suspicious transactions slip through the net.
Electric-Vehicle Bulls Hope for Commodity Surge
BY AMRITH RAMKUMAR
AND IRA IOSEBASHVILI
As investors ramp up bets
that prices of raw materials
used in electric vehicles will
rise, some are hoping that the
next commodity supercycle
might not be far away.
Although skeptics say it is
far from clear which metals
will benefit the most from the
expected surge in electric-vehicle manufacturing, bullish
investors believe electric vehicles could drive a broad-based
commodity supercycle like the
one seen just last decade during a construction boom in
China.
“The scale of the impact is
the same, the difference is the
nuance in what opportunities
arise in raw materials,” said
Stephen Gill, managing partner at Pala Investments,
which owns nearly 20% of the
outstanding common shares of
minerals company Cobalt 27,
helped finance Australian lithium miner Altura Mining and
invests in shares of nickel
miners.
Analysts expect that electric vehicles will play a major
role in markets for rare metals
like cobalt and lithium that
are used in rechargeable batteries, and will also help support prices of more widely
used industrial metals including copper and nickel.
With demand from China,
the world’s largest consumer
of industrial metals, expected
to slow in coming years, some
investors think electric vehicles could support commodities that were beaten down
before this year’s rally. Copper
and nickel have each risen to
multiyear highs this year, and
some analysts think the electric-vehicle fervor is already
bolstering metals prices.
As some of the world’s largest countries and auto makers
have ramped up pledges this
year to phase out diesel cars,
the
electric-vehicle-driven
metals rally has accelerated
and raised expectations for a
major move higher for a wide
swath of the metals market.
“It’s going from that niche
space to something that’s kind
of inevitable at this point,”
said Jay Jacobs of the transition to electric vehicles. Mr.
Jacobs is director of research
at Global X Funds, which offers the Lithium and Battery
Technology exchange-traded
fund that is up more than 55%
this year. “I just can’t say
we’ve really seen something
recently that stacks up to
this,” he said.
Still, a potential supercycle
could face several hurdles, including uncertainty over
whether consumers will switch
to electric cars, substitutions
of different metals into batter-
Continued from page B1
screaming workers, screaming clients, phones ringing
off the hook,” said James
Paille, who is director of
compliance at myPay Solutions, a payroll processor
owned by Thomson Reuters
with 10,000 clients.
Mr. Paille said he fears
major disruptions from a
new withholding system that
is less flexible and could
have higher tax subtractions
from pay for many.
Under the law, both employers and employees have
legal responsibility for determining how much tax companies should withhold from
workers’ paychecks and send
to the Internal Revenue Service during the year. This enables both parties to avoid
penalties for under withholding, although employers bear
less legal burden than individual workers do.
Currently employees fill
out and sign W-4 forms that
claim allowances tied to personal exemptions that are
linked to withholding tables
published by the Internal
Revenue Service. The number of allowances on a taxpayer’s W-4 can be more or
less than the number of personal exemptions later
claimed on the tax return, if
the worker knows of other
factors that will raise or
lower the tax bill.
The current tax overhaul
is expected to repeal the personal exemption, however, in
favor of doubling the standard deduction and increasing some credits. If the personal exemption ends, the
IRS will need to revamp both
the W-4 form and the withholding tables.
The repeal of the personal
exemption would also technically invalidate current W-4
forms, said Mary Hevener, an
employee-benefits attorney
with Morgan, Lewis & Bockius. That would leave both
companies and workers in
the lurch, because they can’t
rely on prior-year filings.
In addition, the rules contain unanswered questions
about the withholding rate
for bonuses, commissions,
stock compensation and
other lump-sum payments
due to workers. The current
rate is 25% for most, but the
bill apparently would raise
that to 28%. Many details
are unclear and may remain
that way even after the bill
passes until the IRS clarifies
them through regulations. Ms. Hevener says that
such payments account for
about one-third of all withholding.
To avoid the problems the
proposed changes would
pose to the withholding system, the APA recommends
that employers be allowed to
rely on 2017 W-4 forms submitted by workers even
though they wouldn’t reflect
the new law. That would give
the IRS time to release new
forms, and employers and
employees time to understand how the new law affects them.
The IRS isn’t expected to
comment publicly on specific
changes to W-4 forms or
withholding until Congress
acts.
Earlier this month, the
agency said it wouldn’t update forms and tables for
2018 until pending legislation is resolved.
When Congress last
passed a major tax overhaul
in 1986, the law included a
provision requiring all employees to submit new W-4
forms by Oct. 1, 1987. A
thoughtful transition would
help here, too.
ies and a lack of charging infrastructure.
With so many possibilities
for which metals and mining
companies will potentially
benefit, some investors are
waiting to see higher adoption
of electric vehicles before
making any bets, let alone
hoping for a massive, broadbased rally.
“To make a gamble this
early just seems crazy to me,”
said John LaForge, head of
real asset strategy for the
Wells Fargo Investment Institute. “I think it’s going to take
a while for electric cars to really take off, probably longer
than most people realize,” he
said.
Passport Kills
Its Flagship
BY ROB COPELAND
John Burbank’s Passport
Capital, known for profitable
bets against subprime housing
ahead of the financial crisis,
will shutter its flagship fund
after persistent losses, according to a letter to investors.
Mr. Burbank wrote to investors Monday that “returns
over the past two years are
unacceptable and cause me to
rethink how to manage money
in this environment.”
Hedge fund Passport peaked
at about $5 billion but lately
managed a fraction of that after a double-digit loss last year
and further losses in 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.
THE WALL STREET JOURNAL.
Tuesday, December 12, 2017 | B11
* * * *
MARKETS
Oil prices rose and the
global benchmark hit its highest level since 2015 Monday after the owner of a major European pipeline said it is
shutting the system down for
weeks.
Ineos, the British refining
and chemiCOMMODITIES cals company, said it
would shut
down the Forties Pipeline System for a “matter of weeks”
after a hairline fracture discovered last week grew.
The outage raised the prospect of a supply shortfall and
comes as the global oil market
has already become tighter following nearly a year of production cuts by the Organization
of
the
Petroleum
Exporting Countries and other
major producers.
Brent crude rose $1.29, or
2.03%, to $64.69 a barrel on
ICE Futures Europe—its highest level since June 2015. U.S.
crude futures rose 63 cents, or
1.1%, to $57.99 a barrel on the
New York Mercantile Exchange.
The pipeline system carries
about 445,000 barrels of crude
a day through the North Sea.
The 235-mile pipeline connects 85 North Sea oil and gas assets to the mainland, about 40% of the U.K.’s North Sea production.
tend their production cuts by
nine months to the end of 2018.
Still, higher prices are motivating those outside of the agreement to boost production.
“Despite the renewed OPEC
commitment to rebalancing
the market, our fundamental
analysis shows moderate
global stock builds going into
2018, and we expect the bullish momentum to fade,” said
analysts at Société Générale in
a note published on Monday.
In addition, OPEC is set to
re-examine its efforts when it
meets in June, and signals
from some members that the
Energized
Shares of oil and gas companies rose with crude-oil prices Monday.
1.5%
S&P 500
S&P 500 energy sector
U.S. crude-oil price
1.0
ELIJAH NOUVELAGE/REUTERS
0.5
0
–0.5
9:30 a.m.
Visitors at Apple headquarters use iPads with augmented reality apps. Company shares rose 1.95%.
noon
Source: FactSet
THE WALL STREET JOURNAL.
Tech, Energy Stocks Propel Dow, S&P 500
no
Dollar Ekes
Out Small
Increase
BY IRA IOSEBASHVILI
The dollar edged higher
Monday as investors geared
up for the conclusion of the
Federal Reserve’s meeting
later this week.
The Wall Street Journal
Dollar Index, which measures
the U.S. currency against a
basket of 16 others, rose less
than 0.1% to 87.32 late Monday.
With many expecting the
central bank to raise interest
rates Wednesday, the focus
likely will shift to the Fed’s
economic and rates projections for 2018.
Some analysts believe the
economy could get a boost if
Republican lawmakers succeed
in passing sweeping tax cuts
in coming weeks, pushing the
Fed to raise rates at a faster
pace next year.
The euro was down less
than 0.1% to $1.1771.
notching its 59th record close
of the year. The Nasdaq Composite rose 35 points, or
0.5%, to 6875.08, while the
Dow Jones Industrial Average
added 56.87 points, or 0.2%,
to 24386.03, posting its 66th
closing high of the year.
Shares of oil-and-gas companies led advances in the
S&P 500, rallying as U.S.
crude oil futures notched
their third consecutive session of gains. The S&P 500
energy sector rose 0.7%,
while U.S. crude for January
delivery rose 1.1% to $57.99 a
barrel, its fifth highest settlement of the year.
Shares of financial and industrial companies in the
S&P 500 lagged behind, post-
ing losses for the day.
Meanwhile, advances in
technology shares lifted the
Nasdaq past other major indexes, with Apple jumping
$3.30, or 1.95%, to $172.67,
and Nvidia up 3.17, or 1.7%, to
194.66.
The European Central
Bank and Bank of England
also hold policy meetings
later this week. Few investors
expect any changes to be announced at this juncture. Instead, analysts said, they will
also watch for clues into
their analyses of the years
ahead, with the ECB set to
release forecasts for 2020 for
the first time.
The Stoxx Europe 600 fell
less than 0.1%, while Lon-
don’s export-heavy FTSE 100
rose 0.8%, among the biggest
gainers in Europe.
Asian stocks strengthened
Monday, with the Shanghai
Composite rising 1%. The Chinese central bank injected a
net 20 billion yuan ($3.02
billion) into money markets
Monday after draining liquidity for two weeks, providing
a lift to Chinese stocks. Early
Tuesday, the Shanghai index
was down 0.4%. Hong Kong’s
Hang Seng Index rose 1.1%
Monday, helped by gains in
HSBC and Tencent. It was up
0.1% early Tuesday. Japan’s
Nikkei rose 0.6% Monday to
its highest close since January 1992. It was flat at the
midday break Tuesday.
Gold Falls for Third Day in a Row
BY AMRITH RAMKUMAR
AND DAVID HODARI
Gold prices swung between
small gains and losses Monday
after closing at their lowest
level since July last week.
Gold for February delivery
closed down 0.1% at $1,246.90
a troy ounce on the Comex division of the New York Mercantile Exchange in a third
straight session of losses. The
dollar rebounding from multiyear lows and concerns about
higher interest rates have
pushed prices roughly 7.5% off
their year-to-date high from
early September.
A dollar-denominated commodity, gold becomes more expensive for overseas buyers
when the U.S. currency grows
stronger. The dollar fell
slightly Monday ahead of the
Federal Reserve’s two-day
meeting that begins Tuesday.
Many investors and analysts
have said they expect gold to
fall ahead of the Fed’s last
meeting of 2017, with the central bank widely expected to
TOBY MELVILLE/REUTERS
Rising technology and energy shares pushed the S&P
500 and Dow Jones Industrial
Average to reMONDAY’S cords Monday
MARKETS ahead of a series of central
bank meetings
this week.
Stock moves were muted,
with major indexes trading in
a narrow range shortly after
the opening bell and then
edging higher in the afternoon.
Some investors said there
were likely to be few swings
in the market ahead of an
meeting of the Federal Re-
serve. With many expecting
the central bank to announce
an interest-rate increase
Wednesday, investors said
they will focus on parsing the
Fed’s economic and rates
projections for 2018.
“There is broad disagreement in the market right now
in terms of the number of
rate hikes in 2018,” said Anik
Sen, global head of equities
at PineBridge Investments.
Although the backdrop for
stocks looks positive heading
into the new year, a pickup in
inflation that spurs the Fed
to raise rates more quickly
than expected could pressure
the stock rally, Mr. Sen said.
The S&P 500 climbed 8.49
points, or 0.3%, to 2659.99,
n-
BY AKANE OTANI
AND RIVA GOLD
Many say they expect gold to fall ahead of the Fed’s meeting.
raise interest rates for a third
time this year.
“Right now, the path of
least resistance for gold prices
is sideways to lower,” said Jim
Wyckoff, senior analyst at
Kitco Metals.
However, some have said
doubts about the Fed’s plans to
raise rates three times again
next year as inflation remains
sluggish could boost prices after the meeting. Friday’s jobs
report once again showed
tepid wage growth, another
sign that inflationary pressures remain muted.
“Gold and precious metals
tend to be bought on the fact
of a rate hike, having been sold
[off] previously,” Jonathan
Butler, a precious metals strat-
cuts could be phased out earlier if the market is rebalanced
by June have weighed on
prices at times.
—Sarah Mcfarlane
contributed to this article.
ly
.
BY ALISON SIDER
AND NEANDA SALVATERRA
Some of that crude is used to
create the Brent crude benchmark. The 235-mile pipeline
systems connects 85 North Sea
oil and gas assets to the U.K.
mainland, amounting to about
40% of the U.K.’s North Sea oil
and gas production.
The outage could prompt
more exports from the U.S. as
European refiners scour the
globe for crude to replace the
lost North Sea output, said
Andy Lipow, president of Lipow
Oil Associates. Prices could remain elevated until it becomes
clear how long the system will
remain offline, he said.
“It’s a significant supply
disruption,” he said. “This production is lost, and if refiners
want to maintain their rates,
they’ll have to pull crude oil
out of inventory somewhere in
the world.
A BP PLC spokesman said
the company was temporarily
shutting down production in
three hubs at the request of
Ineos. Royal Dutch Shell PLC
uses the Forties system to
transport oil from some of its
assets in the North Sea. “We
are aware and are assessing
the situation,” said a spokesman for the British-Dutch
company.
Oil prices have risen around
30% over the past six months
as efforts by OPEC and other
producers to cut output have
helped reduce global stocks.
Last month OPEC, along
with other major producers including Russia, agreed to ex-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Forties System in
North Sea to be shut
for weeks; Brent hits
highest since 2015
ANDY BUCHANAN/AFP/GETTY IMAGES
European Pipeline Outage Lifts Oil Prices
egist at Mitsubishi, said in a
note to clients.
Traders are also monitoring
signs of geopolitical turbulence that tend to boost haven
assets such as gold when investors believe markets might
turn rocky. Some have said the
continuing rise of major stock
indexes around the world and
recent popularity of cryptocurrencies have made gold a less
attractive investment vehicle.
Among base metals, copper
for March surged 1.1% to
$3.0115 a pound. Monday’s
gains came after the industrial
metal fell sharply last week
back below $3 and about 7%
off its three-year highs from
October on concerns that demand from China, the world’s
largest consumer, will slow
moving forward.
Still, prices are up nearly
20% for the year, with the Chinese economy having outperformed expectations in 2017.
Data released Friday showed
Chinese copper imports hit
their highest level of the year
in November.
Treasurys
Fall Before
Fed Meets
BY GUNJAN BANERJI
U.S.
government-bond
prices slipped Monday to open
a week that contains major
central-bank meetings around
the world.
The yield on the benchmark
10-year U.S. TreaCREDIT
sury note edged
MARKETS up to 2.387%
from 2.383% on
Friday.
Yields
rise as bond prices fall.
The muted move begins a
week that includes a Federal
Reserve meeting, at which investors expect officials to
raise interest rates, along with
meetings of the European Central Bank and Bank of England.
The yield on the 10-year
note early Monday dipped as
low as 2.356%, according to
Tradeweb, after a man set off
an explosive device near New
York City’s Port Authority Bus
Terminal near Times Square,
injuring himself and three others.
The 10-year yield pared the
decline in later trading.
Yields rose further as the
government sold three- and
10-year notes later in the day.
Auctions sometimes weaken
Treasurys because they add
supply to the market.
Yields have risen for two
consecutive weeks. Still, Treasurys likely will continue to
trade in a narrow range as investors watch tax-overhaul
plans move through Congress,
said Scott Buchta, head of
fixed-income strategy at Brean
Capital.
Some analysts expect that
progress on tax cuts could
lead to higher bond yields.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$134,523,031,200 $127,210,419,900
$45,000,441,200 $39,000,297,400
$593,001,200 $483,000,900
$200,000,000 $200,000,000
99.666333
99.261889
(1.320%)
(1.460%)
1.343%
1.491%
Coupon equivalent
83.02%
14.27%
Bids at clearing yield accepted
912796NW5
912796PL7
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Dec. 14, 2017. The 13-week bills
mature on March 15, 2018; the 26-week bills mature on
June 14, 2018.
THREE-YEAR NOTES
$75,582,119,500
Applications
$24,000,009,500
Accepted bids
$53,819,500
" noncompetitively
$100,000,000
" foreign noncompetitively
99.834636
Auction price (rate)
(1.932%)
1.875%
Interest rate
71.27%
Bids at clearing yield accepted
9128283L2
Cusip number
The notes, dated Dec. 15, 2017, mature on Dec. 15,
2020.
NINE-YEAR, 11-MONTH NOTES
$47,439,803,700
Applications
$20,000,012,700
Accepted bids
$9,354,700
" noncompetitively
$0
" foreign noncompetitively
98.820844
Auction price (rate)
(2.384%)
2.250%
Interest rate
91.12%
Bids at clearing yield accepted
9128283F5
Cusip number
The notes, dated Dec. 15, 2017, mature on Nov. 15,
2027.
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 | Tuesday, December 12, 2017
THE WALL STREET JOURNAL.
MARKETS
Emerging Markets Ready for Fed Move
Nonresident capital flows to emerging-market assets
Index performance
S&P 500
MSCI Emerging Market Index
50%
1.4
40
1.2
30
By Georgi Kantchev,
Steven Russolillo
and Ira Iosebashvili
1.0
20
0.8
10
0.6
0
0.4
–10
0.2
0
–20
2016
2000 ’02
’17
’04
’06
’08
Gross domestic product, change from a year earlier
MSCI Emerging Markets Currency Index
Advanced economies
8%
1700
Emerging market and developing economies
’12
’14
’16
’18
1650
Projection
6
’10
1600
1550
4
1500
2
1450
0
1400
2010
’11
’12
’13
’14
’15
’16
’17
’18
’19
’20
’21
’22
2012
’13
’14
Sources: WSJ Market Data Group (S&P 500); FactSet (MSCI indexes); Institute of International Finance (flows); International Monetary Fund (GDP)
pected to increase further next
year to $1.2 trillion.
A rare spurt of synchronized global growth has been
underpinning the rally. All 45
countries monitored by the Organization for Economic Cooperation and Development are
on track to grow this year.
That has only occurred three
times in the past 50 years, according to the OECD.
“Emerging markets can
grow even if the Fed is hiking,
provided that growth is playing ball. And right now, it is”
said Stuart Sclater-Booth,
emerging markets debt portfolio manager at Stone Harbor
Investment Partners.
A rise in the price of raw
materials also has boosted
many exporters, with copper
up 19% this year and Brent oil
gaining 10%. The International
Monetary Fund expects emerging economies as a whole to
grow by 4.9% in 2018, up from
4.6% this year, and more than
double the growth rate in advanced economies.
But despite the supportive
backdrop, many investors say
the bigger change comes from
within.
Back in 2013, emergingmarkets assets swooned after
then-Fed Chairman Ben Bernanke indicated that the central bank’s bond-buying pro-
gram might be wound down in
an episode that became known
as the “taper tantrum.” Higher
U.S. rates typically drive investors away from emerging markets by making their bonds,
stocks and currencies less attractive.
This time around, in a year
when the Fed has already
raised interest rates twice and
the European Central Bank indicated it will scale down its
massive bond-buying program,
there are few signs of stress.
“The Fed and other central
banks matter less now because
fundamentals have flipped,”
said Kevin Daly, portfolio manager for emerging-market debt
’15
’16
’17
THE WALL STREET JOURNAL.
at Aberdeen Asset Management.
That includes better governance and a drive by many
countries in recent years to
build up big foreign-currency
reserves and loosen their controls over exchange rates, allowing them to more easily absorb
economic
shocks,
investors say.
“These aren’t the same
emerging markets we had 10
years ago,” said Vasu Menon,
senior investment strategist in
wealth management at OCBC
Bank in Singapore.
For investors like Ashok
Bhatia, senior portfolio manager at Neuberger Berman,
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Wednesday, just as other central banks in the developed
world have recently started to
tighten monetary policy. But
investors in developing countries aren’t flinching, reflecting confidence in the growing
global economy and a changing investment landscape in
those countries, fund managers say.
“Everybody used to think if
the Fed tightens, all emerging
markets die,” said Helen Qiao,
managing director at Bank of
America Merrill Lynch in Hong
Kong. “I don’t think that is the
picture anymore.”
The reversal in fortunes
comes as emerging markets
are enjoying what some analysts call a “Goldilocks” moment—a combination of strong
global growth, stabilizing commodity prices and improving
domestic fundamentals. This
has fueled a rally dwarfing
gains made by U.S. stocks.
The MSCI Emerging Markets Index of stocks has risen
around 28% this year, more
than the 18% gained by the
S&P 500, and is on pace for its
best year since 2009. Currencies such as the Mexican peso
and Russian ruble have risen
this year and so have some developing-country government
bonds.
More money is also flowing
into the developing world. Investors will pour $1.1 trillion
into emerging-market assets
this year, the biggest flow of
funds in three years, according
to the Institute of International Finance. Flows are ex-
Projection
$1.6 trillion
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Blank-Check Firms on the Rise
Checks Out
Money raised by the top five SPACs globally in 2017
J2 Acquisition
$1.21 billion
1.03
n-
Silver Run Acquisition II
0.91
Sherborne Investors C
TPG Pace Energy
0.69
Social Capital Hedosophia
0.69
no
Would you invest in a
company that couldn’t tell
you what its business was
going to be?
Some would, in fact they
are doing so in record
amounts. Blank-check companies, otherwise known as
special purpose acquisition
companies, or SPACs, are
listed companies that raise
money from investors to go
and buy a company as yet
unidentified.
The returns to investors
can be stellar—but on average they aren’t great. Investing blindly looks to be as
high-risk as it sounds.
This year, there have been
almost $14 billion of new
listed shares in blank-check
companies, a record, outstripping 2007’s $12.3 billion
global issuance, and giving it
all a peak-of-the-markets
feel. Between 2007 and 2017,
listings were fewer and issuance averaged less than $3
billion a year.
Today’s SPAC boom is
driven by the same thing as
2007: vast sums of money
trying to find a home. And
private-equity deal makers,
THE WALL STREET JOURNAL.
Source: Dealogic
who already have more buyout money to invest than at
any time in history, are increasingly sponsoring SPACs.
Firms such as Carlyle, Fortress, Riverstone and TPG
have been all behind large
deals this year.
The performance of blankcheck companies vary. Plenty
close and hand back investors’ cash by reaching the
end of their typical two-tothree-year lifespan without
finding a deal. Of nearly 300
SPACs that have listed in the
U.S. since 2003, 80 have
closed and handed back cash,
while the total returns to
shareholders for the 151 that
have completed a deal up to
the end of last week amount
to an annualized average of
5.1%, according to specialist
website Spacanalytics. That
compares with 9.4% for the
S&P 500 over the same period. (Another 40 SPACs are
looking for their acquisition,
while 12 have announced a
deal but are yet to complete
it.)
However, the average for
SPACs covers a very wide
range of outcomes among a
relatively small sample. Milos Vulanovic, a professor at
Edhec business school in
Paris who studies SPACs,
says on average they perform
poorly, but he has found
common factors to some that
do well. SPACs focused on
the shipping industry, for example, happen to have performed particularly well, returning on average 154%. But
that is a small sample.
Some do very well: Centennial Resource Development, which began as a Riverstone-sponsored SPAC, has
delivered total returns of
107% since April 2016. Others
do poorly: Freedom Acquisition bought U.S. hedge-fund
manager GLG in 2007, but after losing roughly half its
value it was taken out threeyears later by U.K.-listed
Man Group.
The method to the SPAC
madness appears to be that
they are a high-risk play.
—Paul J. Davies
OVERHEARD
Growth stocks have
trounced value stocks this
year. The New York Yankees
clearly appreciate that. Maybe
their crosstown rival should
change its investing style.
On Monday, the Yankees
introduced their newest superstar, Giancarlo Stanton.
The National League MVP is
clearly a growth stock.
Across town, the New York
Mets are going in a different
direction, and not just in win
percentage. General manager
Sandy Alderson said the
team didn’t pursue Stanton
because of price and are instead looking for “value” in
the relief pitching market.
This year, growth stocks
trounced value by more than
17 percentage points.
Speaking of flashy stocks,
not flashy players, hedge-fund
manager and almost Mets
owner David Einhorn mused
in a letter to investors this
fall that the success of companies like Amazon.com and
Tesla mean that value investing may not be a viable strategy right now. Mr. Met needs
to mind Mr. Market.
It Is Time to Stop Talking About Bitcoin’s Market Cap
Bitcoin is taking over the
world. Its rapidly rising value
is making it bigger than
some major financial companies, some big currencies and
many of the world’s countries. Or so the bitcoin cheerleaders say.
Bitcoin’s market capitalization currently stands at
around $278 billion, according to coinmarketcap.com.
That puts it ahead of Citigroup Inc. and Visa Inc. and
the gross domestic products
of Finland and Greece.
These comparisons are dubious. Bitcoin’s market cap is
simply its current price in
dollars, times the total number of bitcoins in circulation.
But it makes little sense to
Who's Really Bigger?
Market capitalization vs. total
assets, end-September, in trillions
Market cap
Total assets
Bitcoin
JPMorgan Chase
Bank of America
Wells Fargo
Citigroup
$0
1
2
3
Sources: The companies; coinmarketcap.com
compare this to the market
capitalization of Citigroup or
Visa, currently $201 billion
and $255 billion, respectively. Market capitalization
measures the equity value of
a business, or what investors
are willing to pay for its future profits. Bitcoin isn’t a
business and has no profits.
This comparison gives an
exaggerated impression of
bitcoin’s relative size. For
Citigroup, the more apt comparison would be to its total
assets, which were $1.8 trillion at the end of September.
For Visa, the more interesting comparison would probably be the amount of payments processed by the card
network vs. bitcoin’s blockchain. There are currently
around 337,000 Bitcoin transactions a day, according to
blockchain.info. Visa processed 468 million transactions a day in the three
months through September.
Comparisons with national
GDP figures are the equivalent of comparing two random numbers. Tallying up all
of the timber and machinery
that Finland produces in a
year relative to the global
value of existing bitcoins is
meaningless.
What about major currencies? Total U.S. dollars in circulation amounted to $1.59
trillion as of Nov. 15, according to the Federal Reserve.
But this is a very narrow
measure of U.S. dollar supply, consisting primarily of
physical notes. A broader
measure of money supply
called M3, which includes
money-market funds, shortterm repurchase agreements
that means increasing exposure to some emerging-market
assets. The firm earlier this
year raised allocations in the
dollar-denominated bonds of
Brazil and Azerbaijan. It also
has added to positions in the
Peruvian sol.
History may be on emerging-markets investors’ side,
too. Over the past four decades, the average emergingmarket rally has run for 42
months and returned nearly
230%, according to a Bank of
America Merrill Lynch analysis.
Still, risks remain, particularly if the Fed raises rates
more aggressively than anticipated next year, the dollar
strengthens or the Chinese
economy wobbles. Recently,
assets have wavered amid political and economic turmoil in
key emerging markets such as
Turkey and South Africa, with
the MSCI Emerging Markets
Index broadly flat in the past
three months.
Most investors assume the
Fed’s tightening path will be a
gradual one, predicting two
rate increases next year, according to federal-funds futures tracked by CME Group.
The central bank, though, sees
at least three rate rises. Higher
U.S. interest rates tend to
strengthen the greenback,
which is typically bad news for
emerging markets, whose debt
and commodity exports are often denominated in dollars.
“Markets believe central
banks won’t do anything too
aggressive,” Mr. Menon said.
There is a risk “this quiet complacency is going to go out the
window and that could reverse
in a big way.”
For now,the upswing is expected to continue unabated.
“There is an argument to be
made that emerging markets
have become ‘crisis-proof,’”
analysts at Citigroup wrote in
a recent report. Barring any
nasty shocks, developing nations “can stay in a Goldilocks
zone.”
ly
.
Emerging markets, long vulnerable to the whims of central banks in the developed
world, now seem to be more
Fed-proof than ever.
The Federal Reserve is expected to raise interest rates
for the third time this year
and other liquid assets, stood
at $13.7 trillion at the end of
September. Even this is likely
too narrow, however, as it
excludes a multitude of U.S.dollar denominated assets.
The U.S. economy’s total assets in 2016 came to $220
trillion, according to Federal
Reserve flow of funds data.
There is confusion over
how to measure bitcoin because there is disagreement
over whether it is a currency,
a method of settling transactions or a speculative asset.
Each would suggest a different benchmark. For now it is
mostly just the latter. Beware
of specious comparisons that
overstate its importance.
—Aaron Back
WSJ.com/Heard
Qualcomm
IsPressured
OnNXPOffer
Qualcomm got a good
deal with NXP Semiconductors—perhaps too good.
That argument was made
on Monday in the form of a
letter from activist investor
Elliott Management Corp.
stating that NXP is worth
$135 per share—23% above
the $110 Qualcomm agreed
to pay for the chip maker
over a year ago.
Elliott’s timing is good.
Qualcomm’s need to diversify its business from mobile
phones has taken on new urgency given its escalating
war with Apple Inc. over
patent royalties. And Qualcomm—with $29 billion in
cash parked offshore—can
afford to pay more. With its
stock about 5% above Qualcomm’s offer price, NXP now
fetches around 16 times forward earnings. Elliott notes
this is below the average of
18.6 times for similar chip
stocks.
But Elliott’s case is complicated by the fact that no
other interested parties have
emerged as the deal has
been held up in regulatory
limbo. That is expected to
clear up, but now Qualcomm
itself has been targeted by a
hostile takeover offer from
Broadcom, which indicates
it wants Qualcomm with or
without NXP. That makes it
difficult for Qualcomm to
significantly raise its price
for NXP without looking like
it is trying to sabotage
Broadcom’s efforts.
Qualcomm, which calls its
current offer for NXP “full
and fair,” expects regulatory
approval for the deal to
come by the end of the year,
or perhaps by early next. A
raised offer seems unlikely
before then, so Elliott has
some time to make its case.
It has a strong hand, but one
it should be careful not to
overplay.
—Dan Gallagher
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The Wall Street Journal, newspaper
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