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. WEDNESDAY, DECEMBER 13, 2017 ~ VOL. CCLXX NO. 139 * * * * * * DJIA 24504.80 À 118.77 0.5% NASDAQ 6862.32 g 0.2% STOXX 600 391.63 À 0.7% 10-YR. TREAS. g 5/32 , yield 2.403% HHHH $4.00 WSJ.com OIL $57.14 g $0.85 GOLD $1,238.50 g $5.20 Jones takes Senate seat, beating GOP’s Moore in race that went down to wire Business & Finance BY JANET HOOK AND JOSHUA JAMERSON estfield agreed to a $15.7 billion takeover by European giant Unibail, the latest move by mall owners to join forces as their tenants reel from the growth of e-commerce. A1, B2 W Oil inventories in the industrialized world—a proxy for the world-wide glut—have dropped to a two-year low. A1 Saudi Aramco unveiled a plan to invest more than $40 billion a year in projects over the next decade. B3 JUSTIN SULLIVAN/GETTY IMAGES GE recently conducted an internal review of the flying of a spare jet to accompany Immelt when he was CEO. B1 Insured losses from natural disasters could set a record this year as a result of the California wildfires. B1 A blast at a gas hub in Austria led to a state of emergency in Italy and the highest U.K. gas prices in three years. B2 Facebook plans to book more revenue in countries where it sells ads, bending to foreign pressure. B3 The SEC named five new PCAOB members, overhauling the audit regulator. B18 Toshiba and Western Digital agreed to settle a dispute over Toshiba’s planned sale of its memory-chip unit. B4 World-Wide Trump, GOP Face Political Reckoning BY GERALD F. SEIB Results Alabama Senate race As of 11:35 p.m. EST Tuesday, 100% of precincts reporting Jones (D) 50% Moore (R) 48 Write-ins 2 Source: Associated Press in control of the party but could use their rebellious, antiestablishment message to drive their new version of the Republican Party to victory. Instead, Roy Moore, the candidate Messrs. Trump and Bannon fully supported, lost in a state Republicans had controlled comfortably for most of the past two decades. Mr. Moore was a seriously flawed candidate, controversial enough THE WALL STREET JOURNAL. The Donald Trump/Steve Bannon takeover of the Republican Party will have to be put on hold. ANALYSIS T u e s d a y ’s Senate race in Alabama represented an attempt by the president and Mr. Bannon, his foremost political strategist, to show that they weren’t only A comment posted on the Federal Communications Commission’s public docket endorses a Trump-administration plan to repeal a “net neutrality” policy requiring internet providers to treat all web traffic the same. Calling the old Obama-era policy an “exploitation of the open Internet,” the comment was posted on June 2 by Donna Duthie of Lake Bluff, Ill. It’s a fake. Ms. Duthie died 12 years ago. The Wall Street Journal has uncovered thousands of other fraudulent comments on regulatory dockets at federal agencies, some using what appear to be stolen identities posted by computers programmed to pile comments onto the dockets. no A top FBI agent and an FBI lawyer who were involved in both the Clinton email and Russian meddling investigations traded texts disparaging then-candidate Trump. A2 BY JAMES V. GRIMALDI AND PAUL OVERBERG n- The man accused of detonating a homemade pipe bomb in a New York City transit hub faces federal terrorism charges. A3 Trump reiterated his call to end what he and allies term “chain migration,” which the president blamed for this week’s New York attack. A3 The president criticized Sen. Gillibrand (D., N.Y.), who has called for his resignation over allegations of sexual misconduct, dismissing the accusations as “fabricated.” A6 The U.S., the EU and Japan agreed to increase pressure on countries like China that subsidize domestic companies. A8 U.S. law-enforcement officials are probing allegations of corruption in the awarding of the 2016 Olympic Games to Brazil. A6 A report on North Korea concluded its international financing web is more sophisticated than previously believed but remains vulnerable to sanctions. A8 Died: Edwin Lee, 65, San Francisco mayor and first Asian-American in the job. A3 Opinion.............. A17-19 Property Report. B12 Sports........................ A16 Technology............... B4 U.S. News............. A2-6 Weather................... A16 World News...... A8-11 > to have been tossed off his own state’s Supreme Court twice, and more recently accused of having made improper sexual advances on teenage girls. Thus, much of the loss to Democrat Doug Jones will be laid at the candidate’s feet. Still, the loss is a huge blow to Mr. Trump personally. He now has backed three straight candidates for statewide office Please see GOP page A4 Turnout in the election is a worrisome sign for GOP..... A4 How a tumultuous campaign unfolded........................................ A4 Fake Comments High-End Mall Owner Hit Rule Making Makes a Dash for the Exit The owner of some of America’s most successful malls is getting out of the business. Phony submissions target net neutrality Democrat Doug Jones of Alabama scored an upset win over Republican candidate Roy Moore, capturing a Senate seat in a special election that drove a wedge within the GOP and gave Democrats another burst of momentum. A1, A4 BIRMINGHAM, Ala.—Democrat Doug Jones of Alabama Tuesday scored an upset win in a deeply Republican state, capturing the U.S. Senate seat here in a special election that drove a wedge within the Republican party and gave Democrats another burst of momentum ahead of the 2018 midterm races. The result was a defeat for President Donald Trump, who had endorsed Republican Roy Moore, and for his former White House strategist, Steve Bannon, who had made this the first major test of his strategy of supporting anti-establishment candidates to challenge the GOP old guard. It was the second potent signal, after Democrats swept the Virginia legislature races a month ago, that Democratic enthusiasm in the midterms could produce the sort of wave election that could flip control of Congress. Mr. Jones, a 63-year-old former federal prosecutor, won in part by appealing to voters who believed the allegations of sexual misconduct and assault on teenage girls when Mr. Moore was in his 30s were an embarrassment to the state and disPlease see JONES page A4 ly . The S&P 500 and the Dow set records, buoyed by shares of banks and other financial firms. The blue chips rose 118.77 points to 24504.80. B19 Democrat Doug Jones won the Alabama Senate seat in a hotly contested special election Tuesday over Republican Roy Moore. co Fo m rp m e er rs ci on al a us l, e on Bitcoin’s surge has been driven by millions of individual investors in Asia. B1 Passport is closing its main hedge fund to focus only on cryptocurrencies. B18 s Copyright 2017 Dow Jones & Company. All Rights Reserved YEN 113.54 Democrat Wins in Alabama Upset What’s News CONTENTS Banking & Finance.... B18 Business News... B3,7-10 Crossword.............. A16 Heard on Street B20 Life & Arts...... A13-15 Markets............ B19-20 EURO $1.1743 Oil Supplies Retreat, Bolstering Producers BY GEORGI KANTCHEV AND BENOIT FAUCON LONDON—A wave of oil-supply disruptions, rising demand and OPEC’s production cuts have raised hopes among investors and producers that global crude inventories are finally falling back in line with demand. Oil inventories in the industrialized world—a proxy for the world-wide glut—have dropped to their lowest levels in two years. Brent crude for February delivery, the international benchmark, rose past $65 a barrel in volatile trading Tuesday for the first time since June 2015 before falling to settle at $63.34 a barrel on ICE Futures Europe, Please see OIL page A2 Saudi Aramco to pump up its spending........................................ B3 By Mike Cherney in Sydney, Noemie Bisserbe in Paris and Saabira Chaudhuri in London Reports earlier this year of fraudulent comments on the FCC docket prompted the Journal to investigate the phenomenon there and at other federal agencies. After sending surveys to nearly 1 million people—predominantly from the FCC docket—the Journal found a much wider problem than previously reported, including nearly 7,800 people who told the Journal comments posted on federal dockets in their names were fakes. The Journal found instances of fakes that favored antiregulation stances but also comments mirroring consumergroups’ pro-regulation talking points, posted without permission of people whose names were on them. Such distortions, often unknown even to the agencies involved, cut against an imporPlease see FAKE page A12 Westfield Corp., which operates marquee malls from California to New York’s World Trade Center, agreed to a $15.7 billion takeover offer from European shopping-center giant Unibail-Rodamco SE. The deal is the latest of several recent moves by mall owners to join forces as their tenants—brickand-mortar retailers—reel from the growing dominance of ecommerce sites like Amazon.com Inc. Until recently, the pressure has been focused on mall and shopping-center operators in smaller, less well-heeled markets, where the bargains and convenience of online shopping has been a bigger draw. But in the past year, the stock prices Who Found the Millennium Falcon? Real-Life Star Wars Reporters i i i Fan journalists scoop world on movie news, including storage site of Han Solo’s freighter BY ANDREW BEATON But Mr. Burns, and the staff at his website, Jedi News, aren’t typical sci-fi fanatics. They are investigative journalists, diggers whose passion is to break news about Wookiees, lightsabers and starships. Tens of thousands of readers flock each day to the site and others like it because they Solo routinely beat traditional news media to the hottest Star Wars scoops. Some fan journalists have become so knowledgeable that Lucasfilm, the company that created Star Wars, now a unit of Walt Disney Co., has hired them away, inPlease see FALCON page A6 Staring at a satellite image on Google Maps, James Burns could hardly believe his eyes. There in plain sight was a Hollywood legend—shielded on all sides by seven shipping containers, half covered in a lavender tarp Han and just yards away from a golf course in Surrey, England. Mr. Burns, a software coder in London by day, is a Star Wars zealot. He has the requisite galactic bona fides: a trove of memorabilia, an encyclopedic knowledge of the Star Wars universe and even a website where he sneaks away from his day job Joe Morgenstern reviews to write about his obsession. ‘The Last Jedi’......................... A15 Mall Madness Share of combined portfolio value by region France 37% U.S. Central Europe 22% 8% U.K.* 7% Spain 6% Unibail Westﬁeld Nordics 6% Germany 6% Austria 4% Netherlands 3% *Includes Milan shopping center at cost Source: the companies THE WALL STREET JOURNAL. of some of the toniest mall owners and operators have been under pressure, too. Shares of Westfield—with its portfolio of glitzy arcades in places like Seattle, Los Angeles and Chicago—had fallen 9% this year before the disclosure of the deal Tuesday. Westfield has been reducing its retail exposure for years, venturing into residential and entertainment properties. Still, Tuesday’s decision is an acknowledgment from one of the industry’s biggest players of the formidable challenges ahead. It also could herald more dealmaking, as landlords seek to add scale and cut costs. The deal follows a series of big consolidation moves on both sides of the Atlantic. Another giant U.S. mall owner, GGP Inc., received a $14.8 billion bid last month from realestate company Brookfield Property Partners LP for the roughly two-thirds of the company it doesn’t already own. Westfield competes in the U.S. with the likes Simon PropPlease see MALLS page A11 Deal catapults Unibail into the spotlight............................... B2 Heard on the Street: A bet on the future of megamalls... B20 NBA IS LIVE. Powered by SAP HANA®, the NBA gives fans a live, statistical experience that spans from 1946 to the most recent play. While ﬁnancial, travel, and HR solutions from SAP help the NBA run live—on and off the court. sap.com/nbalive 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 | Wednesday, December 13, 2017 * ***** THE WALL STREET JOURNAL. U.S. NEWS FBI Agent, Lawyer Disparaged Trump BY BRENT KENDALL AND ARUNA VISWANATHA SHAWN THEW/EPA/SHUTTERSTOCK ted Mr. Strzok: “Wow, Donald Trump is an enormous d*uche,” to which Mr. Strzok responded: “How was Trump, other than a douche?” Ms. Page also briefly worked with Mr. Mueller’s office. Mr. Strzok and Ms. Page haven’t responded to requests for comment. FBI Director Christopher Wray was asked repeatedly about Mr. Strzok’s texts at a House Judiciary Committee hearing last week but declined to answer, citing an ongoing U.S. WATCH investigation by the Justice Department’s inspector general, or in-house watchdog. Deputy Attorney General Rod Rosenstein is scheduled to face the same committee Wednesday morning and is likely to face questions about the text messages. About 375 texts, which had been flagged by the inspector general as the most relevant, were provided in advance of his hearing. Mr. Strzok was reassigned to a supervisory job in the bu- A lawyer for Donald Trump Jr., President Donald Trump’s eldest son, on Tuesday asked the House Intelligence Committee to open a “formal inquiry” into what he said were leaks by committee members or staff following the younger Mr. Trump’s interview with the panel earlier this month. The lawyer, Alan Futerfas, in a letter sent to House Intelligence Committee Chairman Rep. Mike Conaway (R., Texas), asked the panel to investigate in particular “whether any members or staff members of this committee intentionally disseminated inaccurate information to the media,” according to a copy of the letter viewed by The Wall Street Journal. Mr. Futerfas said such an investigation was necessary “to maintain the credibility of the investigation.” A spokesman for Mr. Conaway didn’t return a request to comment. The letter comes as Mr. Trump Jr. is set to hold his third interview with congressional investigators later this week, this time with the Senate Intelligence Committee, according to a person familiar with the schedule. Congress, along with Special Counsel Robert Mueller, is examining whether Trump associates colluded in Russian efforts to intervene in the 2016 U.S. election. The president and the younger Mr. Trump have denied collusion by him or his campaign, and Moscow has denied meddling in the election. —Rebecca Ballhaus reau’s human-resources division after Mr. Mueller learned about the text messages, the Wall Street Journal and others reported earlier this month. The texts date to 2015, including one in which Mr. Strzok refers to Mrs. Clinton’s rival for the Democratic nomination, Bernie Sanders, as “an idiot like Trump.” In one 2016 message, Ms. Page said: “God, Trump is a loathsome human.” In response, Mr. Strzok said: “Yet he may win,” adding, “Good for Hillary.” Mr. Trump’s allies have raised ethical concerns about some Justice Department and FBI staff, including Mr. Strzok, as Mr. Mueller’s investigation proceeds. Supporters of Mr. Mueller’s investigation have dismissed the criticisms as politically motivated attempts to distract from a legitimate probe. A career Justice Department lawyer who specializes in organized-crime issues was recently transferred from the deputy attorney general’s office to another division because he failed to inform officials of a September 2016 meeting with the author of a controversial dossier on thencandidate Trump, people familiar with the matter said. The lawyer, Bruce Ohr, was never involved in the Justice Department’s probe into Russia’s meddling in the 2016 election, according to current and former Justice Department officials. Feast of Our Lady of Guadalupe Is Celebrated Across the U.S. Divide Narrows In GOP Tax Plans Bel Air Fire Traced To Homeless Site Republicans reconciling House and Senate tax bills say they are narrowing their differences, putting a $1.4 trillion tax cut on track to be unveiled by Friday and passed by both chambers next week. Tuesday evening, Senate Republicans were preparing to send their latest offer back to their House counterparts, in a negotiation that centered on whether to set the corporate tax rate at 21% or 22%, or to maintain a goal of cutting the tax to 20% from its present 35% level. Negotiators were making movement on a number of other issues. For example, they were leaning toward adopting and refining a Senate-developed tax regime for pass-through businesses, which include businesses that pay taxes through individual returns. As a way to address concern from high-tax states hurt by repeal of state and local individual income-tax deductions, they were also talking about setting the top individual tax rate lower than the House’s 39.6% level or the Senate’s 38.5% level. “The rates, both the business level, the corporate level and individual level, are issues that are in play,” said Sen. John Thune (R., S.D.), one of the conferees. —Siobhan Hughes The blaze that ripped through sprawling estates in the hillsides of Bel Air was sparked by an illegal cooking fire at a nearby homeless encampment nestled in scrubland, Los Angeles Fire Department officials said. The fire, now largely under control but still burning nearly a week after it started, charred more than 400 acres, shut down a critical portion of the 405 freeway and prompted the closure of hundreds of schools. It destroyed six Bel Air homes with an estimated value around $20 million, according to real-estate data provider Zillow. Four other fires are still burning across Southern California in one of the state’s most severe fire seasons, fed unusually late in the year by very dry weather and unrelenting winds. In Los Angeles, local officials said the homeless encampment where the fire originated had been in the area for about three years. The encampment wasn’t previously on the radar of fire authorities, local officials said. Smaller brush fires in the city have started at homeless encampments before, typically in the summertime, but none to the scale of the Bel Air neighborhood fire, fire officials said. —Nour Malas n- no JAY JANNER/AUSTIN AMERICAN-STATESMAN/ASSOCIATED PRESS CALIFORNIA co Fo m rp m e er rs ci on al a us l, e on CONGRESS ly . A top FBI agent and an FBI lawyer, who were involved in both the investigation into Hillary Clinton’s email arrangement and the probe into Russian electoral meddling, exchanged texts disparaging then-candidate Donald Trump, including calling him an “idiot,” according to copies of the messages the Justice Department provided Congress late Tuesday. Peter Strzok, 47 years old, was one of the highest-ranking agents at the Federal Bureau of Investigation. He was removed from his post with Special Counsel Robert Mueller’s investigation of Russian meddling this past summer after a Justice Department watchdog launched an inquiry into the texts. The messages between Mr. Strzok and FBI lawyer Lisa Page include Ms. Page telling Mr. Strzok in August 2016: “Maybe you’re meant to stay where you are because you’re meant to protect the country from that menace.” In July 2016, during the GOP convention, Ms. Page tex- Trump Jr. Lawyer Calls for Leak Probe COLORFUL COSTUMES: Children participated in a procession to mark the Feast of Our Lady of Guadalupe in Austin, Texas, on Tuesday. OIL Continued from Page One down 2.1% on the day. Oil-industry participants are preparing for a more stable price of about $60 a barrel or higher, after a three-year roller coaster when the price fell from more than $100 a barrel in 2014 to less than $28 a barrel in 2016. The price has stagnated in the $40-$60 range for much of this year. “It’s actually tempting us to revise our price forecasts higher,” said Amrita Sen of consulting firm Energy Aspects, which predicts Brent will average $64 a barrel next year. “We had a big drawdown of inventories this year and demand has been very strong. The recovery is well under way.” The rise in oil prices comes with a quirk that could help U.S. exporters: American crude prices haven’t gained as fast as Brent and remain more than $6 Sinking Supply Crude prices have risen this year as supply waned. Crude-oil stockpiles, OECD 1.26 billion barrels Brent crude-oil price $65 a barrel 1.24 60 1.22 55 1.20 50 1.18 45 1.16 1.14 40 J F M A M J J A S* J F MAMJ J A S O N D *Preliminary Sources: FactSet (price); International Energy Agency (supply) THE WALL STREET JOURNAL. a barrel cheaper. That makes U.S. oil more attractive to ship globally. The last time the price differential was this wide, in October, U.S. oil exports climbed to two million barrels a day, a record, according to German bank Com- CORRECTIONS AMPLIFICATIONS Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: email@example.com; By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS merzbank AG. On Tuesday, West Texas Intermediate crude for January delivery fell 1.5%, to $57.14 a barrel on the New York Mercantile Exchange. “This is definitely good news for U.S. exporters, who have already been ramping up” sales abroad, said Tom Pugh, a commodities economist at Capital Economics. U.S. oil exporters and shale drillers have been locking in sales of crude at higher prices just as production in the U.S. is forecast to reach record levels in 2018. The oil-price surge gives big Western oil companies like BP PLC, Exxon Mobil Corp. and Royal Dutch Shell PLC more financial breathing room than they have had in years. Many have already taken steps that show they can make money at prices below $60 a barrel. France’s Total SA on Tuesday scrapped the discount it will offer shareholders that opt to receive their dividend payment in stock, a signal that the company is more confident it can haul in enough cash to pay investors. Meanwhile, Saudi Arabian officials on Tuesday said that state-owned Saudi Arabian Oil Co. would invest $414 billion over the next decade, investments they said were needed for the kingdom to maintain its world-leading ability to produce 12 million barrels a day. About one million barrels a day of oil—more than 1% of global supply—have been lost to the market since October because of disruptions to exports, pipelines and production in the U.S., the U.K., Venezuela and Iraq. Meanwhile, the Organization of the Petroleum Exporting Countries and a coalition of big producers like Russia have renewed their pledge to withhold 2% of global oil supply from the market through 2018. The most recent jolt to the market came from Great Britain, where one of Europe’s most important pipeline systems sprung a leak last week. About 450,000 barrels a day of North Sea oil production is shut off for the next two to three weeks for repairs to the Forties Pipeline System, said its owner, Ineos, the British chemicals and refining company. The oil-supply cuts and disruptions have coincided with healthy oil demand this year. To be sure, oil prices are likely to fall after the U.K. pipeline system returns this month. Also, higher prices could cause the OPEC production deal to collapse as some try to cash in by releasing more output. Analysts have warned that higher prices could cause a flood of new production from the U.S. But the sheer amount of oil coming off the market in recent weeks may be too much even for the U.S. to make up for. Shale producers are under pressure to show profits instead of just pumping as much as possible. —Neanda Salvaterra, Sarah Kent and Summer Said contributed to this article. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Wednesday, December 13, 2017 | A3 * * * * ©T&CO. 2017 U.S. NEWS DREW ANGERER/GETTY IMAGES TIFFANY HARDWEAR New York police officers stood guard during morning rush hour at an entrance to New York Port Authority Bus Terminal on Tuesday. Terror Charges for Suspect the complaint. He is charged with providing material support to a terrorist organization, use of weapons of mass destruction, bombing a place of public use, destruction of property by means of an explosive and use of a destructive device. Mr. Ullah faces up to life in prison. A lawyer for Mr. Ullah, a 27year-old Bangladeshi immigrant, couldn’t be identified. “We are heartbroken by this attack on our city today and by the allegations being made against a member of our family,” the Ullah family said. Mr. Ullah constructed the pipe bomb in his Brooklyn BY CORINNE RAMEY AND ZOLAN KANNO-YOUNGS protect your nation.” Mr. Ullah last traveled to Bangladesh on Sept. 8, and a senior official of the Dhaka Metropolitan Police said Mr. Ullah has traveled back to Bangladesh several times since he immigrated to the U.S. Mr. Ullah got married in Dhaka three years ago and has an infant son. Police haven’t publicly identified them. Bangladesh’s elite counterterrorism force said agents interviewed his wife and parents, who lived in the same home in the capital. The interviews indicated that Mr. Ullah became radicalized during his time in the U.S. 800 843 3269 | TIFFANY.COM co Fo m rp m e er rs ci on al a us l, e on The man accused of detonating a homemade pipe bomb strapped to his body in one of New York City’s busiest transit hubs faces federal terrorism charges, according to a complaint filed Tuesday. “I did it for the Islamic State,” suspect Akayed Ullah told investigators, according to apartment about one week prior to Monday’s attack, according to the complaint. He used Christmas tree lights, wiring and a nine-volt battery to detonate the bomb, it says. He filled the bomb with metal screws to cause maximum damage, then affixed the bomb to his body with zip ties, prosecutors say. The explosive fizzled but burned Mr. Ullah, injured three others and disrupted morning commutes for thousands of New Yorkers. The complaint says that on Monday morning, Mr. Ullah posted on his Facebook account: “Trump you failed to ly . Ullah, accused in New York transit bombing, has a wife and infant son in Bangladesh GOP Targets Family Immigration BY LAURA MECKLER AND ALICIA A. CALDWELL whether the definition of family is too generous, and whether the U.S. should reduce the total number of legal immigrants by cutting back family immigration. On Tuesday, President Trump reiterated his call to end “chain migration,” which he blamed for the foiled terrorism attack this week in New York. The suspect, Akayed Ullah, emigrated to the U.S. in 2011 from Bangladesh, winning a green card based on his family ties. Mr. Trump also again attacked the diversity visa lottery program, which admits 50,000 people chosen at random from countries that are underrepresented in U.S. immigration. The suspect in the recent deadly New York truck attack was admitted through this lottery. “There have now been two terrorist attacks in New York n- WASHINGTON—Family relationships have long formed the core of the U.S. immigration system. These preferences are now being targeted by Republicans led by President Donald Trump, who wants to reduce legal as well as illegal immigration to the U.S. Mr. Trump and his allies have begun using the term “chain migration” to describe the system that allows U.S. citizens to sponsor relatives to come to the U.S., and then allows those immigrants to become citizens and sponsor other relatives. The U.S. immigration system has centered on family ties ever since a landmark 1965 overhaul, so narrowing the rules would mark a major shift. Debate, driven by Republicans, is under way over City in recent weeks carried out by foreign nationals here on green cards,” Mr. Trump said Tuesday. Defenders of family-based visas say the existing system works well. Rep. Luis Gutierrez (D., Ill.) said blocking people from bringing their parents to the U.S. is “insanely cruel” and “pretty un-American.” He added: “This to me is just an excuse to stop legal immigration and to make it harder for people of color to come to this country.” About two-thirds the people awarded green cards each year get them based on family ties. The bulk go to close family, not far-flung relatives. More than a half-million green cards last year—about half of all green cards issued—went to spouses, minor children and parents of U.S. citizens. Siblings and adult children are also eligible, but there are nu- merical caps and the wait can be decades long. Mr. Trump has proposed changing the law so that citizens can sponsor only spouses and minor children, eliminating the ability to bring adult children, parents or siblings. The push to end family and diversity visas comes amid a congressional debate over providing legal status for socalled Dreamers, young undocumented immigrants who were protected by an Obamaera program that Mr. Trump ended. Democrats have pushed hard for those protections to be extended. Most Republicans want those protections paired with border security and other enforcement measures, but some have suggested changes to the legal immigration system could be included in a deal. Democrats oppose such changes. SAN FRANCISCO—Mayor Edwin Lee, who helped usher in a technology development boom here and was the city’s first Asian-American mayor, died unexpectedly on Tuesday at the age of 65. The mayor arrived at the Zuckerberg San Francisco General Hospital after 10 p.m. Monday in critical condition by ambulance, and doctors tried to revive him for several hours, said Susan Ehrlich, the hospital’s chief executive officer. He died after 1 a.m. on Tuesday. Mr. Lee suffered a cardiac arrest while he was out shopping late Monday, former San Francisco Mayor Willie Brown told ABC 7 News. Board of Supervisors President London Breed has become acting mayor, the mayor’s office said. Mr. Lee, who was in his second term as mayor, was “surrounded by his family and his friends and the colleagues who loved him,” when he died, Ms. Breed said, describing the mayor as a man who “lived a life of service…cut short far too soon.” Ms. Breed will hold the position of acting mayor until an election is held June 5, unless the city supervisors vote on a successor. The board isn’t required to do so. DAVID PAUL MORRIS/BLOOMBERG NEWS BY ZUSHA ELINSON AND ALEJANDRO LAZO no San Francisco Mayor Lee Dies at 65 Edwin Lee, the son of Chinese immigrants, was San Francisco’s first Asian-American mayor. As mayor, Mr. Lee, a Democrat, presided over an unprecedented boom in San Francisco’s economy that sent unemployment plunging and housing costs soaring. He persuaded Twitter Inc. and other tech companies to make their home in one of the dingiest parts of San Francisco on the edge of the Tenderloin by offering them payroll tax breaks. For Mr. Lee, it was an opportunity to retain a burgeoning, homegrown technology industry while revitalizing one of the city’s poorest zones. But he was assailed by critics for the rising housing costs that put buying a home in San Francisco beyond the grasp of many working- and middleclass residents. Mr. Lee was born in Seattle, one of six children of Chinese immigrants. His father was a cook and his mother was a seamstress. Mr. Lee began working for the city of San Francisco in 1989, holding various positions before being appointed as city administrator in 2005. He was appointed interim mayor in 2011 after Mayor Gavin Newsom was elected lieutenant governor. He pushed through measures to raise the minimum wage and fund more affordable housing. Mr. Lee continued the tradition of San Francisco mayors as liberal standard-bearers, pushing back against President Donald Trump’s rhetoric and policies on immigration. San Francisco was the first city to sue the Trump administration over its policies on sanctuary cities. Mr. Lee is survived by his wife, Anita, and two adult daughters, Brianna and Tania. Starting at $1,950 www.baume-et-mercier.com For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A4 | Wednesday, December 13, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X THE WALL STREET JOURNAL. ****** THE ALABAMA SENATE RACE Turnout Is Worrisome for Republicans BY DANTE CHINNI Democrat Doug Jones’s improbable victory in one of the nation’s reddest states is sure to fuel Republican anxieties about next year’s midterm elections, as it offers more evidence that Democrats in the era of President Donald Trump are eager to vote, while GOP voter turnout is muted. Mr. Jones eked out a narrow win in his U.S. Senate race due to high turnout among African-Americans, who over- whelmingly backed the Democrat, and low turnout in the largely white, rural counties that Republicans have counted on as a large part of their base. More broadly, Mr. Jones held on to 98% of voters within his own party, exit polls reported by various news media showed, besting even then-President Barack Obama, who held 90% of Alabama Democrats in the 2012 presidential election. By contrast, Republican Roy Moore held 91% of Republicans, lower than the 98% that his party’s presidential nominee won in 2012. Officials in both parties will sort through the numbers to determine whether to draw broad lessons from the Republican defeat, or whether it was due to the uniquely weakened state of their nominee, as Mr. Moore was buffeted by accusations of sexual misconduct with teenage girls, one as young as 14. Mr. Moore denied the allegations. Democrats will argue that their victory, in a state that Mr. Trump carried by more than 27 percentage points last year, builds on signs that their party enters the midterm election year with their voters eager to curb the president’s power. Their win in Alabama builds on a 9-point Democratic victory in the Virginia gubernatorial election last month, the product of a surge in Democratic voting. African-American turnout was an important factor on Tuesday. Blacks made up about 29% of the total vote, about equal to their presence in the electorate in 2012, when Mr. Obama, an African-American, was on the ballot. Votes cast in heavily African-American Sumter and Greene counties, to pick two examples, equaled 62% and 71% of their totals, respectively, in the presidential election of 2012. By contrast, Winston and Marion counties, part of the Mr. Moore’s rural, white base, produced lower shares of their 2012 vote totals—57% and GOP 54%, respectively. (There were no exit polls in Alabama in 2016.) In another warning sign for the GOP, Mr. Jones won 51% of independent voters, exit polls showed, a big boost from the 23% his party won in the 2012 presidential contest in Alabama. But an energized black turnout may not help Democrats in next year’s midterm elections. African-Americans will be less of a factor in most of the 60 or so House races considered competitive. Party Shift 1977 S.C. ALA. GA. LA. 1997 S.C. MISS. ALA. GA. ly . DAN ANDERSON/EPA/SHUTTERSTOCK MISS. Republican Roy Moore told supporters Tuesday night that he won’t concede until all votes are in. LA. co Fo m rp m e er rs ci on al a us l, e on How a Tumultuous Campaign Unfolded 2017 n- tion of voters that propelled the party to victory in the Virginia governor’s race last month also emerged in Alabama. Exit polls showed that women made up a slight majority of the electorate and went for the Democratic Mr. Jones over the Republican Mr. Moore 58% to 41%. Nonwhite voters, principally AfricanAmericans, made up one-third of the electorate and went for the Democrat 88% to 11%. And Add sparkle to her season. Wave Pendant with Genuine Hawaiian Koa Wood Inlay and Shimmer Diamond in 14K Yellow, White or Rose Gold $699 Chain included Matching Earrings available HAWAII: Oahu, Maui, Kauai, Big Island of Hawaii BOSTON: Natick Mall, Northshore Mall CHICAGO: Woodﬁeld Mall, 600 N. Michigan Avenue DALLAS: NorthPark Center • DENVER: Cherry Creek Shopping Center LAS VEGAS: Grand Canal Shoppes at The Venetian NEW YORK: Roosevelt Field • ORLANDO: Disney Springs PHILADELPHIA: The Plaza at King of Prussia PLEASANTON: Stoneridge Mall • PORTLAND: Washington Square ROSEVILLE: Galleria • SAN DIEGO: Fashion Valley SAN FRANCISCO: PIER 39 • SAN JOSE: Valley Fair SEATTLE: Bellevue Square • WASHINGTON, D.C.: Tysons Corner Center NaHoku.com • 1-866-296-9374 FREE FEDEX SHIPPING ON ALL ORDERS OF $200 OR MORE MISS. EPA/JIM LO SCALZO Nov. 18, 2016: Presidentelect Donald Trump announces his intention to nominate Alabama Sen. Jeff Sessions as U.S. attorney general. Feb. 9: Alabama’s governor appoints state Attorney General Luther Strange to temporarily fill Mr. Sessions’ Senate seat. Aug. 8: Mr. Trump endorses Mr. Strange in a GOP primary. Aug. 15: GOP primary voters send the top two finishers—Roy Moore and Luther Strange—to a runoff. Sept. 26: Mr. Moore wins the runoff. Nov. 9: The Washington Post publishes an article in which Mr. Moore is accused of sexual misconduct with teenage girls, including one who was 14, no Continued from Page One who have lost. He backed the loser in the Virginia governor’s race. He backed the loser in the Alabama Republican Senate runoff. And, in the past two weeks, he threw his full support behind the man who lost in the Alabama Senate general election. The implications are enormous. If Mr. Trump’s message and personal power aren’t enough to win a state in the deep-red South, then mainstream Republicans will have little reason to think they can rely on those factors elsewhere. Nor will they think they are compelled to follow the lead of their own president on matters political. That, in turn, will drive a further wedge between the president and Republican leaders—particularly Senate Majority Leader Mitch McConnell—who never wanted the party to throw its support behind Mr. Moore in the first place. Similarly, Mr. Bannon’s pledge to field and fund nationalist, rabble-rousing Republicans to challenge a whole series of Republican senators up for re-election next year will strike less fear in the hearts of the party’s mainstream. His ability to act as a kind of Pied Piper leading a long string of candidates formed in his image to the front ranks of the party now is in doubt and will be resisted with new vigor by party regulars who fear he could lead the party to a broader disaster. For Democrats, the victory in a state they never dreamed of winning just a few months ago delivers a jolt of energy— and, perhaps as important, could encourage balky donors who have left the party’s national machinery seriously underfunded this year. Heading into a crucial midterm election year, that combination of energy and dollars—and a belief in actually being able to win races in what last year was Trump country—is essential for Democratic hopes. Perhaps most encouraging for Democrats, the same coali- Once a Democratic stronghold, Alabama and the rest of the Deep South states had been represented exclusively by Republicans in the U.S. Senate. Democrat Doug Jones won Alabama’s race Tuesday. Senators by party Two Democrats Two Republicans Split S.C. ALA. GA. LA. Jeff Sessions was sworn in as U.S. attorney general in February, setting off an eventful race to fill his Senate seat. Democrats Deep South Senators over time Republicans 10 when he was in his 30s. Nov. 13: Senate Majority Leader Mitch McConnell calls on Mr. Moore to quit the race. Nov. 14: The Republican National Committee cuts off its fundraising agreement with the Moore campaign. Nov. 21: Mr. Trump starts tweeting against Mr. Moore’s Democratic opponent, Doug Jones. Dec. 4: Mr. Trump endorses Mr. Moore by name. Dec. 10: Alabama’s senior senator, Richard Shelby, voices opposition to Mr. Moore. Dec. 11: Mr. Trump urges voters to support Mr. Moore in an automated phone call. Dec. 12: Mr. Jones wins the Senate race in an upset. voters under the age of 30 went for Mr. Jones by a 60%to-38% margin. Democrats now will try to ride that combination of voters—women, minorities and young voters—to victory in race after race next year. They now will need to pick off a net of only two Republican Senate seats to win the majority there, though that actually will be a tough assignment in light of the large number of Senate seats Democrats have to defend, several in GOP-leaning states. Another key question Alabama’s results bring to the fore is whether Democrats can take control of the House of Representatives next year. That, too, remains an uphill climb. The key numbers to keep in mind as Democrats approach that challenge are 24, 23 and 12. Democrats need to turn 24 House seats from Republican to Democrat to take control. Their best chance at winning that number starts with the 23 House seats held by Republicans from congressional districts that Hillary Clinton won in last year’s presidential election. They will have to pick off most of those to win the House. Meantime, they have to de- fend the seats of 12 Democratic House members from districts Mr. Trump carried last year. In short, it’s still a tough task for Democrats in the contest that really will determine the contours of Washington in the era of Mr. Trump. They will need a national wave. The results in Alabama certainly don’t guarantee such a wave. But they do suggest it’s possible. crat that Alabamians have sent to the U.S. Senate in more than two decades. His pending arrival in the nation’s capital will trim the GOP’s Senate majority from 52-48 to 51-49, loosening the Republicans’ grip on power in the chamber after a year of struggling to give Mr. Trump’s agenda a legislative boost. The GOP attempt to repeal the Affordable Care Act failed earlier this year by one vote because of defections within its own ranks. The Jones victory puts the Democrats one seat closer to picking up a majority in the Senate in the 2018 midterm elections. They had needed a net gain of three seats to get to 51 seats, a target that had been hard for them to envision reaching. Now they only need a net gain of two seats, and there are two GOP seats ripe for flipping—in Arizona and Nevada. The special election was for the seat that was held by Jeff Sessions, the Republican who left the Senate to become Mr. Trump’s attorney general. Mr. Trump had endorsed Mr. Moore, albeit after first endorsing primary rival Luther Strange, who had been appointed Mr. Sessions’ temporary successor. Mr. Moore’s loss raises questions about the power of the president’s political coattails. Mr. Trump campaigned close to the Alabama border in Pensacola, Fla., last Friday and called on voters to back Mr. Moore to help push his agenda forward. The president posted a tweet Tuesday night congratulating Mr. Jones on “a hard fought victory,” and added: “The people of Alabama are great, and the Republicans will have another shot at this seat in a very short period of time.” Both camps were on edge throughout the night as the votes were being counted. Mr. Moore led for most of the night, but by a margin that narrowed steadily as more votes in major cities—Jones strongholds—were among the last to report their ballot counts. One factor in the outcome was the significant number of ballots cast for write-in candidates, which likely hurt Mr. Moore because those votes were expected to come more from disaffected GOP voters than Democrats. The state’s senior GOP senator, Richard Shelby, led the way by announcing in advance of the election that he would cast a write-in ballot for an unnamed Republican because didn’t believe that Mr. Moore was fit to serve. Coming amid a national debate over sexual harassment of women, the race was unusually competitive for a state as conservative as Alabama, where Republicans routinely win their races by landslide margins. Mr. Jones’s own allies say he wouldn’t have had a chance to win if not for the allegations surrounding Mr. Moore, a former Alabama Supreme Court Chief Justice. After the allegations surfaced, Mr. Jones’s campaign seized on the opportunity by upping its outreach to AfricanAmerican voters and trying to woo white Republicans who never fully backed Mr. Moore. Many in the Alabama business community were concerned that a Moore victory would undermine efforts to attract new investments. —Kristina Peterson contributed to this article. JONES Continued from Page One qualifier for office. “This entire race has been about dignity and respect,” Mr. Jones said at his boisterous victory rally in Birmingham. “This campaign has been about the rule of law. This campaign has been about common courtesy and decency.” The vote was close enough that Mr. Moore refused to concede, saying that there may be a recount required if, when the vote is certified, the margin of victory is less than one-half of one percentage point. With 99% of the vote tallied on Tuesday, Mr. Jones held a lead of 1.5%— well outside of the range of a mandatory recount. “When the vote is this close, it is not over,” Mr. Moore said. Alabama Secretary of State John Merrill said on CNN it was “highly unlikely” that the outcome would be overturned, but the final vote count—including military ballots that hadn’t yet been counted wouldn’t be certified until after Dec. 26, but no later than Jan. 3. Mr. Jones pulled off his win due to high turnout by black Democratic voters and suburban Republicans who were put off by the Moore campaign’s travails. The sexual-misconduct allegations also seemed to create a drag for Mr. Moore as turnout dipped in the largely white, rural counties that Republicans have counted on as a large part of their base. Mr. Jones is the first Demo- 8 6 4 2 0 1977 ’81 ’85 ’89 ’93 Source: ProPublica Congress API In the Red Margin of victory in previous Alabama Senate races DEMOCRATIC WIN REPUBLICAN WIN 1980 1984 1986 1990 1992 1996 1998 1902 2004 2008 2010 2014 2016 40 pct. pts. 30 Jeff Sessions ran unopposed 20 10 0 Source: U.S. House of Representatives Ofﬁce of the Clerk 10 20 30 40 THE WALL STREET JOURNAL. ’97 2001 ’05 ’09 ’13 ’17 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. Wednesday, December 13, 2017 | A5 ABI 3 Month INDIVIDUAL Support/Resistance (40 Day) Trade Alert ABI Arbine Industries 80.4399 84.65 0.3199 (0.40%) 83.38 S 83.35 B 80.42 x 1 A 80.44 x 3 V 1.655.125 EQUITY SUMMARY SCORE BULLISH 82.11 Social Sentiment for ABI 80.84 80.4399 S-Score 0 BCO 81 BPO 79 78.29 PROVIDED BY SOCIAL MARKET ANALYTICS 7.1 3 As of 09/24 View Details Provided by S EARNINGS 79.56 Neutral 0.840 1 Q1 Expected Report Date 09/25/2017 Consensus Estimate EPS Estimate Low/High Range View Details 0.8 77.02 DIVIDENDS E 75 74 Ex Dividend Date 08/28/2017 Trade Confirmation: N 1,250 shares of ABI Commission: Images are for illustrative purposes only. co Fo m rp m e er rs ci on al a us l, e on ly . $4.95 THIS IS WHAT REAL VALUE LOOKS LIKE. Be in control Great value for trades Identify new investment opportunities with independent, expert research and innovative data visualization tools. 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There is an Options Regulatory Fee from $0.04 to $0.06 per contract, which applies to both option buy and sell transactions. The fee is subject to change. *Trade Armor® is available to customers on Active Trader Pro® and Fidelity.com. Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2017 FMR LLC. All rights reserved. 818916.1.0 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 | Wednesday, December 13, 2017 * * THE WALL STREET JOURNAL. U.S. NEWS Trump Hits Gillibrand Over Call To Resign CARL DE SOUZA/AGENCE FRANCE-PRESSE/GETTY IMAGES BY REBECCA BALLHAUS The Maracanã Olympic Stadium during the closing of the 2016 Games in Rio de Janeiro. U.S. officials are investigating allegations of corruption surrounding the Games. U.S. Probes Awarding of Olympics Olympics, according to Brazilian prosecutors and people familiar with the matter. That investigation has already yielded charges—including the arrest in October of Carlos Nuzman, the former president of the Brazilian Olympic Committee—in what Brazilian and French authorities also are investigating alleged criminal activity. was released from jail about two weeks after his arrest. They didn’t respond to a request for comment Tuesday. The subpoena, which was sent in August to a Brazilian businessman in Key Biscayne, Fla., asked him to testify before the grand jury in Brooklyn and to provide the FBI with communications related to the IOC’s 2009 vote on the 2016 Games. Prosecutors were also seeking details on financial transactions related to Rio de Janeiro’s bid to host the Games, communications with former top IOC officials and contracts the businessman received to provide services at the Rio Olympics. Mark Adams, a spokesman for the IOC, said the organization hadn’t been contacted by U.S. authorities regarding the probe but is in touch with Brazilian and French authorities. “It is hypothetical, but should justice decide that some individuals have misbehaved for the 2016 vote, then the IOC would of course take its responsibility,” Mr. Adams said. The recipient of the U.S. subpoena, Arthur Cesar de Menezes Soares Filho—known as Arthur Soares—had multimillion-dollar contracts with the state government of Rio de Janeiro and a stake in a planned Trump hotel project that had a contract to provide rooms for the Rio Olympics, according to Brazilian prosecution documents. In October, French and Brazilian prosecutors charged Mr. Soares with funneling at least $2 million in bribes to the son of a Senegalese IOC official in 2009 at the request of Brazilian officials. A lawyer for Mr. Soares couldn’t be reached. —Aruna Viswanatha and Sara Germano contributed to this article. ly . U.S. law-enforcement officials are investigating allegations of corruption in the awarding of the 2016 Olympic Games to Brazil, according to people familiar with the matter. The probe is being led by the Federal Bureau of Investigation’s New York field office, along with prosecutors from the U.S. attorney’s office in Brooklyn, according to a U.S. grandjury subpoena and two of the people familiar with the matter. The U.S. probe is in addition to investigations by Brazilian and French authorities into alleged criminal activity connected to the Rio de Janeiro Games and other international athletic competitions. A federal grand jury in Brooklyn was seeking testimony and documents in connection with the Olympics investigation as recently as this summer, according to the subpoena, which was reviewed by The Wall Street Journal. The subpoena, as well as accounts of people familiar with the matter, indicate that the U.S. investigation is focused on alleged vote buying and possible corruption in contracting for the 2016 Olympics, including for lucrative media and marketing rights. The probe is being led by the same FBI squad and group of federal prosecutors that in 2015 brought charges alleging wideranging corruption in international soccer, and who for two years have been investigating alleged state-sponsored Russian doping in the Olympics, according to the subpoena and people familiar with the matter. For more than a year, U.S. authorities have been asked to assist in a joint investigation by Brazilian and French authorities into alleged corruption surrounding the Rio co Fo m rp m e er rs ci on al a us l, e on BY PAUL KIERNAN AND REBECCA DAVIS O’BRIEN Brazilian prosecutors allege was a scheme by Brazilian officials to bribe members of the International Olympic Committee to support Rio de Janeiro’s bid for the 2016 Olympics. Mr. Nuzman’s lawyers have repeatedly denied the allegations against their client, who President Donald Trump on Tuesday criticized a Democratic U.S. senator who has called for his resignation over allegations of sexual misconduct as a “total flunky” while dismissing the accusations as “fabricated.” In tweets Tuesday morning, Mr. Trump accused Democrats of promoting the allegations of more than a dozen women that he engaged in sexual misconduct. He targeted New York Sen. Kirsten Gillibrand, who on CNN Monday said the allegations against Mr. Trump were credible and heartbreaking and said he should resign. “Lightweight Senator Kirsten Gillibrand, a total flunky for Chuck Schumer and someone who would come to my office ‘begging’ for campaign contributions not so long ago (and would do anything for them), is now in the ring fighting against Trump,” Mr. Trump said on Twitter. Asked about the president’s tweet, White House Press Secretary Sarah Huckabee Sanders said Mr. Trump “is not alleging anything. He’s talking about the way our system functions, that politicians repeatedly beg for money.” Regarding Mr. Trump’s suggestion that Ms. Gillibrand would “do anything” for campaign cash, Ms. Sanders said, “There’s no way this is sexist at all.” On Tuesday, Ms. Gillibrand replied to Mr. Trump on Twitter: “You cannot silence me or the millions of women who have gotten off the sidelines to speak out about the unfitness and shame you have brought to the Oval Office.” On Tuesday, women Democratic House lawmakers met at the Capitol to call for an investigation into the accusations. Russia won’t bar athletes from the Games.................... A16 The world’s first zero-crease carry-on no n- Unlike current luggage systems that fold your suit up to three times and create creases along the way, VOCIER’s patented zero-crease system keeps your suits pristine and completely wrinkle-free. All aspects of the suitcase are designed to make life easy for busy professionals. Start your smooth travels now. SAVE $50 Code VOC50 Continued from Page One cluding creative executive Pablo Hidalgo. “Next thing you know, you’re at Skywalker Ranch,” he said, referring to the famous California workhub of series creator George Lucas. These citizen reporters submit public record requests to uncover key information about the movies, such as the legal names of the entities producing the films. The information in turn helps Mr. Burns’s team track filming locations and studios, where they hunt for leads. In 2013, such a request from Jedi News led to a major story. Lucasfilm was using the pseudonym Foodles Productions Limited to produce “The Force Awakens,” the 2015 film that brought the Star Wars franchise back to prominence. This June, Jedi News landed arguably the most enviable scoop in Star Wars history. It revealed to the world the real-life location of a treasure from a long time ago in a galaxy far, far away: The Millennium Falcon, Han Solo’s famed spaceship. For Mr. Burns, this was a newsroom triumph. “We do a lot of investigative journalism,” the Jedi News editor said. “To find that was magic.” The Jedi News masthead consists of eight writers and editors. They have day jobs—two are IT workers and two are teachers, among other occupations—but spend up to a few hours a day on Jedi business. (Mr. Burns’s 8-year-old daughter was on the red carpet last year interviewing stars at the London premier of “Rogue One.”) The reporters have specialties but their beats often necessitate expanding their horizons. “You can’t just stay within your comfort zone and say, ‘I’m only going to report on Star Wars ac- Order by “Anyone who flies frequently will see why this new carry-on is a sensation” 12 /20 for the Holidays Jury German Design Award VOCIER.com Your Children’s Names hand-crafted in sterling silver with brilliant Swarovski crystals set in solid gold - $390 JOHN-CHRISTIAN.COM 888.646.6466 GOOGLE MAPS FALCON The Millennium Falcon parked in a field near Longcross Studios. tion figures,’ ” said Justin LaSalata, a Jedi News reporter who works in IT at a medical school. The universe of Star Wars obsessives is so vast that the history of nearly every actor, prop and artifact has been exhaustively chronicled. Fans know Bantha milk is blue and can recite Mr. Lucas’s life story. If there’s one icon that has captivated die-hards, it is the freighter Han Solo—played by Harrison Ford—claimed could make the Kessel Run in less than 12 parsecs. Mr. Burns dreamed about Hunting through Google’s satellite images uncovered the ‘pot of gold.’ finding the Millennium Falcon. He spent hours combing through Google Maps, looking at filming locations. He drilled a lot of digital dry holes, never finding anything, until last June. That’s when an email arrived from a tipster and Jedi News reader he didn’t know. It contained a bombshell: precise instructions for how to find the Millennium Falcon on Google Maps. Mr. Burns said the loyal Star Wars fan’s own hunting through Google’s satellite images uncovered the “pot of gold” he had always sought. “We were flabbergasted. It was hiding in plain sight,” Mr. Burns said. The satellite images show it parked, unceremoniously, in a field near Longcross Studios, about 20 miles southwest of London, where parts of “The Last Jedi,” which releases Friday, were filmed. Jedi News published a post about the discovery. Their tweet was coy: “Something fun. Go on Google maps. Type in LONGCROSS studios. Zoom in. See what you can find…” These days, a search for “Millennium Falcon UK” brings up its own pinpoint on the satellite image—and a click on the Street View icon brings up a rendering of the interior of the cockpit, posted by a user. A spokeswoman for Lucasfilm said the Falcon needed a parking spot, and it was a simple matter of storage. Lucasfilm declined to say if the ship will be used in future movies. The Falcon isn’t an easy spacecraft to put in dry dock. It’s over 70 feet in diameter and about 18 feet tall at its center, according to the film company. This version of the ship— which was used in the 2015 and 2017 movies—hasn’t actually existed for very long. For the original, 1977 film, the Falcon was partially created and the rest was done in painting and models. It was completed for “The Empire Strikes Back” and “Return of the Jedi,” but afterward, most of it was destroyed. When the franchise was resurrected with “The Force Awakens,” half of the Falcon’s exterior structure was built at Pinewood Studios in England, where that film was shot. The whole exterior was finally finished for “The Last Jedi.” According to Lucasfilm, there is one detail of the Falcon that is far too small to see on the satellite images: signed notes on the exterior from J.J. Abrams and Rian Johnson, the directors of the last two Star Wars movies in the sequel trilogy. 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. Wednesday, December 13, 2017 | A7 PAID ADVERTISEMENT STRENGTHEN THE TAX BILL FOR A STRONGER HOUSING MARKET The 1.3 million members of the National Association of REALTORS® urge the members of the House – Senate conference committee for “The Tax Cuts and Jobs Act” to consider these provisions that will create a better outcome for current and prospective homeowners, communities and the economy. Capital Gains on the Sale of a Home: Retain current law on Theproposedchangeincreasestheamountoftimehomeowners co Fo m rp m e er rs ci on al a us l, e on are required to live in their homes, creating hardships for ly . the capital gains exclusion for the sale of a principal residence. many who must sell their homes because of legitimate and pressing needs, such as a job relocation or change in family size. This change could also put further strain on the already tight housing supply in many markets. Home Mortgage Interest Deduction: Retain current law that allows homeowners to deduct the interest on mortgages up to $1 million. Lowering the cap to $500,000 will have an immediate and negative impact on families in high cost markets. Keeping this deduction, as is, helps maintain stability in the marketplace. State and Local Tax Deductions: Expand the proposed n- limits on the deductibility of state and local taxes (SALT) and include income or sales taxes. If property taxes are the only no deductible levies, state and local governments will likely shift more of the tax burden onto owners of real property. By improving these critical housing provisions, the conferees can support economic growth and provide opportunity for homeowners. To learn more, log on to www.nar.realtor/tax-reform REALTOR® is a registered trademark that identifies members of the National Association of REALTORS®. PAID FOR BY THE NATIONAL ASSOCIATION OF REALTORS® 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. A8 | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. WORLD NEWS Iraqi Areas Freed of ISIS Remain at Risk U.N. identifies five mainly Sunni regions that need fresh aid to avoid sliding into chaos Problems Follow U.S. Military Wins The U.S. has a history of military victories in Iraq, only to see them eroded by the political and economic challenges that follow. In 2003, the Bush administration toppled Saddam Hussein but was unprepared for occupying the country. After American forces were withdrawn from Iraq in 2011, the Obama administration boasted violence was at a historic low only to see Islamic State rampage across the country less than three years later. More recently, President Donald Trump asserted in October that the fighters were giving up. But military experts expect many of those fighters to return to their guerrilla roots. “The reasons for the creation of Daesh are still there,” Osama al-Nujaifi, one of Iraq’s three vice presidents, said, using an Arabic acronym for Islamic State. —Michael R. Gordon Tens of billions of dollars is needed to restore Iraq’s infrastructure, officials say. Above, a neighborhood in Mosul in April 28 areas. The projects are supposed to draw on Iraqi labor and include clearing debris, restoring water and electricity, building schools and fixing hospitals. The U.S. has contributed about $265 million of this sum. (Since 2015, it also has contributed another $112 million for removing mines, IEDs and other explosives.) But to meet the additional needs identified by the U.N. in the five newly reclaimed Sunni areas, another $289 million is needed, pushing the stabilization requirements to more than $1 billion. “Iraq has come so far, but if we don’t stabilize the areas that have been newly liberated, the gains against ISIS could be lost,” said Lise Grande, the deputy special representative for Iraq for the United Nations secretary-general. While the additional funds that are being sought are dwarfed by the costs of waging the military campaign, they come as the international community is also confronted by humanitarian crises in Yemen, Libya and Syria. The funding appeal also comes as some coalition members ap- pear to be distracted by political developments at home. The coalition’s working group on stabilizing war-torn areas in Iraq and Syria is led by the United Arab Emirates and Germany, which is struggling to form a new government. “The U.N is concerned it will run out of money,” the U.S. official said. “We need some nations to bring their money forward.” The longer-term stakes are huge. Nearly 50% of Iraq’s population is less than 19 years old, the U.N. says. Deepmala Mahla, who oversees programs in Iraq for Mercy Corps, an aid organization, said much of Iraq’s youth cohort will be unemployed and vulnerable to entreaties from militants unless more schools and businesses are reopened. “Young people are a fulcrum on which Iraq’s future turns,” she said. “The recovery and reconstruction process should not only aim to repair the physical damage done to places but also transform them into more peaceful areas with stable livelihoods.” —Nancy A. Youssef contributed to this article. ly . pledges and new investment. In crafting a strategy to take on Islamic State, the U.S. made it clear it wasn’t going to take on the burden of rebuilding Iraq. But it has backed the more-limited mission of stabilization, which American officials have defined as making areas livable enough that people could return to their homes. So far, about $770 million has been pledged by the antiIslamic State coalition so that the United Nations Development Program can carry out more than 1,500 programs in co Fo m rp m e er rs ci on al a us l, e on WASHINGTON—Iraq’s prime minister is celebrating the collapse of the Islamic State’s selfdeclared caliphate, but American and Iraqi officials are confronting a gnawing recognition that much more is needed to stabilize newly reclaimed areas and prevent militants from making a comeback. The United Nations has identified five predominantly Sunni areas in Iraq where nearly $300 million in fresh aid is needed over the next year to resettle civilians and re-establish some semblance of normal life. The regions notably include western Mosul, the scene of the Iraqi military’s most hard-fought triumph against Islamic State but an area so battered the vast majority of its residents have yet to return. American officials said they agree with the basic U.N. assessment, which was presented at a meeting last month in Amman of the U.S.led coalition that has been fighting the militants. “Things can fray,” one senior U.S. official said. “There are requirements. There are needs, and those needs have to be met. The responsibility is shared by all of us.” The urgently needed aid is just a down payment on the tens of billions Iraqi officials say is needed over the next decade to restore Iraq’s infrastructure, including its oil sector. Kuwait is planning to host an international conference in February in the hope of eliciting billions of dollars in GABRIEL ROMERO/ZUMA PRESS BY MICHAEL R. GORDON How North Korea’s Finance Web Dodges Sanctions A port in North Korea’s Rason Special Economic Zone, where coal is stranded by U.N. sanctions. n- Corp., according to the report. Foreign financial institutions maintain correspondent accounts at their U.S. counterparts to process U.S. dollar transactions. The reseller didn’t know it was doing business with Pyongyang, researchers said. Bank of America said Tuesday, “We take our obligations under federal anti-money- no Researchers in Washington and South Korea have identified a number of business transactions that they say show North Korea’s international financing web is more sophisticated than what was widely known previously. A report by the researchers also concluded that Pyongyang’s illicit global financial network remains highly vulnerable to international sanctions, meaning the West may have broad leverage to wield. That conclusion is expected to be cited by advocates for toughening sanctions against companies doing business with North Korea. As an example, the report cites a transaction in which a military equipment supplier run by North Korea’s intelligence agency used a front company in Hong Kong to purchase components from an East Asian electronics reseller. The payment was cleared through a correspondent account at Bank of America ED JONES/AGENCE FRANCE-PRESSE/GETTY IMAGES BY KATE O’KEEFFE AND IAN TALLEY laundering laws seriously.” Details of the transaction show how North Korea’s intelligence agency has been able to use the U.S. financial system to facilitate military sales banned by U.S. law and United Nations resolutions. The report, released Tuesday, was compiled by experts at C4ADS, a Washington-based research organization, and the Sejong Institute, a think tank based in Seongnam, South Korea. Sen. Cory Gardner (R., Colo.), an advocate of stronger sanctions against Pyongyang, commended the research by the nonpartisan groups, speaking at an event accompanying the report’s release. “It’s time the United States gives nations that aid North WORLD WATCH UNITED KINGDOM Alliance Adds Two Years to Chief’s Term Inflation Hit Six-Year High in November NATO extended the term of Secretary-General Jens Stoltenberg on Tuesday, paving the way for him to become the longestserving chief since the Cold War. The two-year extension, approved unanimously by the 29 NATO ambassadors at the North Atlantic Council meeting, was unusual. Recent leaders of the North Atlantic Treaty Organization have had their terms augmented by a single year. The administration of President Donald Trump has said it appreciates Mr. Stoltenberg’s embrace of Washington’s call for more European military spending. The alliance chief has also won over Europeans with his work to balance increased defenses against the Russian military with a steady diplomatic push with Moscow. During his first three years in office, Mr. Stoltenberg has overseen the creation of a NATO military force in Poland and the Baltic States aimed at deterring Russia. He has also pressed European capitals to increase military spending. He won European support for Consumer prices in the U.K. rose in November at the fastest pace in almost six years, intensifying a squeeze on household budgets that shows little sign of letting up. Annual inflation hit 3.1% last month, the Office for National Statistics said Tuesday, fueled by higher prices for products including computer games, as well as higher airfares than a year earlier. —Jason Douglas and Wiktor Szary FABRIZIO BENSCH/REUTERS NATO FESTIVAL OF LIGHTS: Europe’s largest menorah was lit at the Brandenburg Gate in Berlin on Tuesday to celebrate Hanukkah. an American initiative to require detailed funding plans and commitments that new money go to military weapons. With the NATO decision Tuesday, Mr. Stoltenberg will serve through September 2020. On Tuesday, Mr. Stoltenberg said he plans to use the next three years to build the alliance’s cyber preparations. He also said more must be done to strengthen NATO’s maritime forces to counter a rising threat from Russian submarines. —Julian E. Barnes IRAN Earthquakes Cause Injuries, Damage Multiple strong earthquakes struck Iran’s southeastern province of Kerman on Tuesday and Wednesday, injuring at least 18 people and damaging some 20 houses, state media reported. On Monday, a temblor hit western Iran, where last month an earthquake killed hundreds of people. —Reuters MEXICO Industrial Production Declined in October Mexican industrial production slipped a seasonally adjusted 0.1% October, and was 1.1% lower than October 2016, the National Statistics Institute said Tuesday. Output had been expected to rise 0.7% from a year earlier, according to economists polled by The Wall Street Journal. —Anthony Harrup Korea’s economy a clear choice—do business with the United States or do business with North Korea,” he told The Wall Street Journal. The U.S. Treasury and Justice Department have intensified an enforcement campaign targeting North Korea’s facilitators and President Donald Trump has redesignated the regime as a state sponsor of terror. But some U.S. officials, lawmakers and analysts believe more needs to be done, particularly in light of North Korea’s latest intercontinental ballistic missile launch on Nov. 29, which U.S. officials and experts said demonstrated technical advancements. Since last year, C4ADS has issued a series of reports spotlighting parts of North Korea’s financial network that were later sanctioned by the U.S. Treasury. The group has been influential in shaping legislation on Capitol Hill and has won public praise from U.S. officials, including Secretary of State Rex Tillerson. The latest report, based in part on the recovery of trans- action records, shows the deals are taking place in an environment North Korea does not control. “However, it is an environment that the international community does control,” the report says. The transaction detailed in the report describes actions by Malaysia-based Glocom, which has been identified by U.N. investigators as a military equipment supplier run by North Korea’s Reconnaissance General Bureau, the country’s top intelligence agency. The report said Glocom used a firm called Shengang Trade & Investment as a front to conduct international transactions such as the electronics purchase. According to the researchers, Shengang bought components later used in military communications equipment from the electronics reseller, an apparently legitimate firm that wasn’t named in the report. Representatives for Glocom didn’t respond to requests to comment, but the firm earlier denied the U.N. allegations. —Joanne Chiu in Hong Kong contributed to this article. EU and Japan Join U.S. In Criticism of China BY TAOS TURNER BUENOS AIRES—The U.S., the European Union and Japan agreed on Tuesday to increase pressure on countries like China that subsidize domestic companies and require foreign firms to transfer technology to local counterparts. In a joint statement issued at a World Trade Organization summit here, the three parties didn’t refer to China by name, but two people familiar with the statement said it was aimed squarely at influencing policy in Beijing. Negotiated on the sidelines of the summit, the statement showed unusual multilateral support for the Trump administration, which has been criticized here for taking a more skeptical approach to global trade rules than previous U.S. administrations. The three parties said they would join forces to create a more level economic playing field in countries where state policies and funding create “severe excess capacity in key sectors.” They also agreed to target “market-distorting subsidies” and local-content requirements, saying they pose serious concerns for the global trade system. “We, to address this critical concern, agreed to enhance trilateral cooperation in the WTO and in other forums, as appropriate, to eliminate these and other unfair market-distorting and protectionist practices by third countries,” the statement said. It was signed by Cecilia Malmström, the EU’s trade commissioner; Hiroshige Seko, Japan’s economy minister; and Robert Lighthizer, the U.S. trade representative. The agreement comes as the WTO’s 164 members struggle to agree on updating global trade rules ranging from e-commerce to fishing. The common stance among the three represents a potentially significant shift in how larger economies deal with China, whose trade practices U.S. President Donald Trump has harshly criticized. 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. NY Wednesday, December 13, 2017 | A8A REAL-TIME NETWORK PERFORMANCE DATA ACROSS ALL YOUR LOCATIONS, co Fo m rp m e er rs ci on al a us l, e on ly . IN THE PALM OF YOUR HAND. Introducing the Comcast Business ActiveCore SM mobile app for SD-WAN management. A gamechanging tool that monitors your network’s health, offers proactive, actionable insights, and delivers real-time data across all your locations to a single, intuitive interface. SD-WAN from Comcast Business offers up-to-theminute information on your network’s performance, down to the site level. So there’s no more calling around to multiple locations to troubleshoot WAN issues. And now it’s available in the palm of your hand. It’s Gig-ready, powered by an advanced IP network, and only from Comcast Business. Restrictions apply. May not be available in your area. Actual speeds vary. ©2017 Comcast. All rights reserved. no n- comcastbusiness.com/sdn 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. A8B | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. NY no n- co Fo m rp m e er rs ci on al a us l, e on ly . We Deliver. Meals. Nutrition. Dignity. Hope. Love. #FoodIsMedicine godslovewedeliver godslovenyc godslovenyc God’s Love We Deliver is the New York City metropolitan area’s leading provider of nutritious, individually tailored meals to people who are too sick to shop or cook for themselves. All meals are provided free of charge, without regard to income, and we have never had a waiting list. To donate or volunteer your time, visit us at godslovewedeliver.org. If you are in the NYC metropolitan area and would like to become a client, please email firstname.lastname@example.org or call 212.294.8102. 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. Wednesday, December 13, 2017 | A9 WORLD NEWS Paris Meeting Hears Pledges To Cut Fossil-Fuel Investments PARIS—Global institutions committed to cutting financing of fossil-fuel projects at a summit in Paris, backing French President Emmanuel Macron’s call for the private sector to do more to combat greenhouse-gas emissions after President Donald Trump said the U.S. would withdraw from the Paris climate agreement. One of the largest pledges at the One Planet Summit on Tuesday came from French insurer AXA, which said it would pull €2.4 billion ($2.8 billion) from the coal industry, shed all investment in oil sands and no longer insure new projects in either sector. Dutch lender ING said it would cut its exposure to coal power to zero by 2025 and the World Bank said it would no longer finance upstream oil and gas after 2019. Other institutions had already announced plans to step back from financing fossil fuels before the summit, as the sector comes under mounting pressure from investors. Mr. Macron called the meeting of some 50 heads of state, chief executives and film stars in reaction to President Donald Trump’s decision to quit the Paris agreement, which the French leader said had “weakened” the 195-nation pledge to limit the rise in global temperatures. Mr. Trump wasn’t invited to the summit Tuesday. —William Horobin Theresa May has rejected Norway’s ‘satellite’ model for EU trade. She has ruled out as insufficient a preferential-trade deal on the lines the EU struck with Canada in 2016. That eliminates tariffs on most goods. But it still leaves the need for significant border checks on goods imports to ensure they meet the required standards and provides only limited access to trade in services—hugely important to the British economy. She has also rejected the so-called Norway model. For most purposes, Norway is part no of the EU’s single—or internal—market. But the price is big financial contributions to the EU, acceptance of EU rules without a say in the legislation and accepting judgments of the EU courts, all of which Mrs. May has ruled out. Even with all this, Norway has a customs border with neighboring Sweden, an EU member, because Norway isn’t part of the EU’s customs union. In last week’s deal, both sides agreed that to avoid the re-creation of a customs border between EU member Ireland and Northern Ireland— which is part of the U.K.—the U.K. would, if necessary, “maintain full alignment with those rules of the internal market and the customs union.” To explain the apparent contradiction with Mrs. May’s statements, Brexit Secretary David Davis said on Sunday that full alignment doesn’t mean the U.K. plans to accept EU regulation post-Brexit. Instead, it aims to create its own regulation. “We’ll meet the outcomes, but not do it by just copying or doing what the European Union does,” he told the British Broadcasting Corp. World leaders attending the One Planet Summit cruised on the Seine river on Tuesday. LUDOVIC MARIN/PRESS POOL At the EU’s insistence, negotiations have until now focused on the terms of separation. But the two sides progressed on that last week. At a summit this week, EU leaders may finally authorize negotiations on the next steps: a temporary transitional arrangement that will immediately follow Brexit in March 2019 and the outlines of a future trade deal. That remains a crucial unknown for exporters across the U.K. and the European Union, the destination for almost half of British trade. The delay has allowed the British government to sidestep its own divisions between those who want to hug the EU close and those who want to push it away to allow the U.K. to forge stronger ties with the rest of the world. In the com- n- Hub blast crimps European natural gas.................................. B2 By Emre Peker in Brussels and Jason Douglas and Stephen Fidler in London ing week, Prime Minister Theresa May’s cabinet will formally hold its first in-depth discussions on the “end state,” her spokesman said. Mrs. May has said the U.K. will leave the EU’s single market—its common zone of regulation—and its customs union, which sets uniform external tariffs for imports to the bloc. Membership of both allows trade between EU members to carry on almost free of border checks. If the U.K. leaves either one without replicating the same arrangements from outside the EU, the likelihood is that a whole new raft of border bureaucracy will be required, creating delays at ports and disrupting international supply chains. For the EU, Mrs. May’s vision has raised as many questions as it answers. “We need more clarity on how the U.K. sees our future relations, after it has left the single market and customs union,” European Council President Donald Tusk said after meeting Mrs. May last week. Mrs. May has also said she wants trade with the EU to be free of tariffs and “as frictionless as possible.” EMMANUEL DUNAND/AGENCE FRANCE-PRESSE/GETTY IMAGES WASHINGTON—The top State Department official overseeing Europe offered harsh words for Germany over the country’s continued support for a new Russian gas pipeline to Europe, while praising Denmark for passing a law that could hamper the project. A. Wess Mitchell, assistant secretary of State for European and Eurasian affairs, on Tuesday said the formation of a new government in Germany offers an opportunity for the U.S. to make a renewed case against the Russian pipeline, known as Nord Stream 2, which Washington says will give Moscow more leverage over Europe’s energy supply. The pipeline would double Russia’s export capacity by adding a second link between Russia and Germany. He said the new government gives the U.S. a chance to call on Germany “to show responsibility in a European context.” “On energy security, Germany gets it wrong,” Mr. Mitchell said in testimony to the Senate Foreign Relations Committee, referring to the country’s support for the Russian gas pipeline. “And it gets it wrong in a way that hurts other EU member states.” A spokeswoman for the German economics ministry declined to comment on Mr. Mitchell’s criticism of Germany. “For us, Nord Stream 2 is a corporate project,” spokeswoman Tanja Alemany said. Mr. Mitchell praised Denmark for a law allowing the country to block pipelines from traversing its territorial waters on foreign-policy or security grounds. The biggest economic question posed by Brexit—trade— hangs unresolved almost 18 months after Britain voted to leave the European Union. ly . BY PAUL SONNE EU, U.K. Approach Trade Talks co Fo m rp m e er rs ci on al a us l, e on U.S. Slams Support For Russia Pipeline 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. A10 | Wednesday, December 13, 2017 Luxury Card is the industry leader versus the competition for airfare and cash back redemptions. Cardmembers enjoy a first-class experience including a 24/7 concierge service, patented metal cards, a members-only magazine and VIP travel benefits at over 3,000 exclusive destinations around the world. 2% 1.5% 1.25% 1% MASTERCARD® GOLD CARDTM MASTERCARD® BLACK CARDTM MASTERCARD® TITANIUM CARDTM CHASE® SAPPHIRE RESERVESM CITI® PRESTIGE® CARD AMERICAN EXPRESS® PLATINUM CARD® Information as of November 2017. 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Wednesday, December 13, 2017 | A11 * * * * * WORLD NEWS Australia Tests New Path in China Relations MALLS dollars (US$7.55) a share, a nearly 18% premium over Monday’s close. After being halted Tuesday, the shares jumped about 14% to A$9.68 on Wednesday in Sydney. More consumers are shopping online, abandoning the malls and department stores they once frequented. As foot traffic dries up, many brands have been closing stores after years of flooding malls and smaller shopping centers with outlets. Amid that retreat, mall operators have been looking for tenants and novel ways to attract shoppers—like wooing gym chains or creating community spaces. Retail landlords have been slashing rents, while property owners and managers have tried to unload assets. The environment in Europe hasn’t been as tumultuous. That is partly a reflection of a slower takeup of online shopping in parts of Europe. Online transactions accounted for 13.9% of U.S. retail sales in 2016, while Europe’s online market share was just 8%, according to the Center for Retail Research. There are also structural issues that make Europe a better B ut a dose of honesty could also lead to a more sustainable relationship, one based on a frank acknowledgment of differences rather than hopes for an East-West merger based on common values. That mythical prospect— that China will become “more like us”—has held up debate in the liberal West about the larger questions posed by China’s economic and military ascendancy. What is the appropriate response to an increasingly predatory Chinese state that takes advantage of Western openness to acquire technology even as it shelters its own markets behind protec- tionist barriers? How do free societies push back against an authoritarian system that advances its geopolitical interests with clandestine influence campaigns? China co-opts the elites in target countries like Australia by offering them corporate sinecures and consultancy contracts. It buys up Chinese-language news outlets and infiltrates the Chinese diaspora through Communist Party agencies—all the while blocking Western media content at home with its Great Firewall and restricting Western influence by placing foreign NGOs under police administration. Chinese President Xi Jinping has hastened this reckoning. At a party congress a few weeks ago, he made clear that China is supremely confident in its own ways and proclaimed a “new era” in which it will move “closer to the center of the world.” Western politicians are finally coming to view China for what it is, not the country they wish it to be. A ustralia will be a test of how far Western countries will to go to defend democratic values. The People’s Daily attacked the new laws on foreign interference as “hysterical paranoia.” A Foreign Ministry spokesman accused Mr. Turnbull of poisoning ties. Mr. Turnbull said Australians will stand up for their sovereignty. Once China gets over its outrage, a reset of relations with the West is attainable, this time based on candor and pragmatism, not wishful thinking. Gone Shopping Unibail and Westﬁeld will create one of the world's biggest shopping mall operators, with ﬂagship stores in the U.S. and Europe. Portfolio value Number of malls Flagship malls Average annual trafﬁc per ﬂagship location 69 35 15.2 million 16.9 million Unibail-Rodamco €43B Westﬁeld €18.1B Notable ﬂagship mall locations Le Carousel du Louvre, (Paris) Forum des Halles (Paris) THE WALL STREET JOURNAL. Note: €1 = $1.1771 Source: the companies market right now. Retailers didn’t expand as aggressively in Europe as they did in the U.S., a move that has left them with less of a glut of retail space. Those stores—often the anchor retailers for many U.S. malls—have been hard-hit by the shift to e-commerce. Macy’s Inc. and Sears Holdings Corp., for example, are slashing staff and closing stores. Unibail, meanwhile, has a 95% occupancy rate at its malls in Europe. Revenue in the first half of 2017 was 670 million euros ($786 million), up 4.1% from the same period last year. Uni- Century City (Los Angeles) World Trade Center (New York) bail’s retail tenants reported sales growth of 2.7% this year through May. Westfield in recent years had tried to stay focused on the higher end of the market, selling off some of its lower-quality assets in 2015. The company says 17 of its 35 malls are considered flagship properties, comprising more than 80% of its portfolio value. These types of properties have been more successful in keeping shoppers in the age of e-commerce, analysts say. Some recent bets haven’t paid off as hoped. Westfield’s $1.4 billion World Trade Center mall opened last year. The company expected brisk pedestrian traffic from tourists and the thousands of office workers in the mixed-use complex. But the project has faced challenges amid the choppy retail environment and disappointing traffic. Unibail executives said they saw an opportunity to boost the company’s own portfolio of flagship centers. Unibail operates malls across Europe, including the Forum des Halles and Les 4 Temps malls in Paris and Gropius in Berlin. Unlike Westfield, whose name has become an international brand, the French firm runs a collection of malls under different names. Unibail said it would rebrand under the Westfield name, in part to squeeze out marketing costs. That is another big bet that a U.S.branded mall chain will resonate in Europe’s highly localized markets. “For our main assets, it would make sense to use the Westfield brand,” said Unibail CEO Christophe Cuvillier, who will lead the combined group. “There’s money to be saved by advertising only one brand.” no n- Continued from Page One erty Group Inc., CBL & Associates Properties Inc. and Washington Prime Group. The new firm would become the world’s second-largest mall owner by market value, behind Simon Property. The transaction, if approved by shareholders, would cap the decadeslong career of Frank Lowy, chairman of Sydney, Australia-based Westfield. A Holocaust survivor, he started in the business with a deli in a western Sydney suburb. Mr. Lowy will retire as chairman, and his sons Peter and Steven will step down as Westfield’s co-chief executives. The family owns about 10% of Westfield stock. It plans to hold on to about 2.5% of the combined company once the transaction is complete. Shares in Westfield were halted in Sydney Tuesday. The Lowys said they saw the transaction as an opportunity to recover value for shareholders. The deal values Westfield at an equivalent of 10.01 Australian L ast week’s trip to China by Justin Trudeau, the Canadian prime minister whose father engineered his country’s opening to the People’s Republic, will likely go down as one of the last in a series of largely futile Western efforts to “shape” China’s rise by encouraging its adoption of liberal Western ideas. He arrived with ern disillusion gives rise to such strong anti-China sentiment that it derails ties. ly . SHANGHAI—For decades, the relationship between China and the West rested on illusion and pretense. Western politicians fooled themselves into thinking the Chinese system, centrally directed and authoritarian, would in time resemble their own, open and democratic. plans to open talks on a “progressive” free-trade agreement that stresses gender equality, labor protections and environmental rights. He was politely shown the door. At the same time, Australian Prime Minister Malcolm Turnbull was underscoring a new era of realism. With China in mind, he introduced legislation to limit foreign interference in the country’s political life. The impact has been swift: On Tuesday, Labor party senator Sam Dastyari pledged to resign over his links to a real-estate billionaire affiliated with the Communist Party. Australia exemplifies both the advantages and potential hazards of a more hardnosed approach to China. Some predict a new Cold War. That’s possible, if West- co Fo m rp m e er rs ci on al a us l, e on CHINA’S WORLD By Andrew Browne For its part, China camouflaged its global ambitions. Obeying Deng Xiaoping’s maxim to “hide our capabilities and bide our time,” it built itself into a manufacturing colossus and the world’s largest trader, amassed “hard” military power and projected “soft” influence, sometimes covert and bought with cash. This game of make-believe is winding down. With PowerShares QQQ, you have the power to help fortify your portfolio with 100 of the largest, most innovative companies on the Nasdaq. In fact, Lipper ranks PowerShares QQQ the #1 large cap growth ETF over 10 years. If that’s the kind of core strength your clients’ portfolios could use, learn more at powershares.com/QQQ. NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE The Lipper 1-year rank (91 out of 658), 5-year rank (11 out of 532) and 10-year rank (1 out of 387) as of 09/30/17, based on total returns, excluding sales charges and including fees and expenses, and are vs. mutual funds, ETFs and funds of funds in the category. Past performance is not a guarantee of future results. 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One of those was attributed to Gloria Burney, 87, a retired speech therapist in Los Angeles. She isn’t in favor of repealing those rules, she said, “but I never wrote that.” A comment from “Elzor The Blarghmaster” at 9632 Elm Road, Maywood, Ill., was among the 818,000 identical FCC comments backing the Trump policy. No such address could be found, said Jimmie Thompson, a U.S. Postal Service carrier in Maywood. Comments filed with the SEC on the proposed sale of the Chicago Stock Exchange include one submitted by “Jason Blake, commentator, The Wall Street Journal.” The Journal has had no employee by that name, Journal spokesman Steve Severinghaus said. The SEC said it removed the comment. Asked what it does to verify commenters’ identities, the SEC said letters not attributable to known people or entities “are assessed during the course of the rule-making process.” CFPB spokesman John Czwartacki said: “Director [Mick] Mulvaney is concerned about any inauthentic data that comes to the Bureau. We intend to look into this matter further.” An The FCC fakes The largest number of comments the Journal confirmed as phony were to the FCC, one of few agencies to routinely post email addresses with comments. Its net-neutrality rule has generated 23 million comments. Suspicions of fakery in netneutrality comments emerged in May, when thousands of emails Payday Problems Quid also analyzed 200,000 comments about payday lending that the Consumer Financial Protection Bureau deemed 'unique'—not products of templates often used by advocacy groups. Sentence length (characters) 600 500 400 300 200 100 0 The Wall Street Journal and Quid Inc., a San Francisco ﬁrm that specializes in analyzing large collections of text, examined comments submitted to the FCC before July 20 about ‘net neutrality’ rules. Millions of posts 10.1 million comments collected 6.6 million comments from ‘distinct’ voices 5.6 million templated comments 818,000 comments with the same text 3.5 million comments from ﬁlers with multiple submissions discarded 1 million ‘unique’ comments ‘Random’ sentences The Journal analyzed nearly 1,000 net-neutrality comments that began the same way as a comment attributed to Donna Duthie, who died in 2005. The analysis of the text of comments that begin 'FCC: Hi, I'd like to comment on Internet Freedom' shows how bots can generate seemingly unique sentences by selecting phrases from a dictionary. FCC: Hi, I’d like to comment on Internet Freedom. I strongly demand the FCC to repeal the Obama/Wheeler scheme to regulate the web Tracing anomalies President Obama's order to take over the web the FCC to rescind the Obama/Wheeler decision to regulate the internet I request the commissioners to reverse FCC: Hi, I'd like to comment on Internet Freedom. Tom Wheeler’s power grab to take over broadband decision to regulate broadband power grab to take over the internet Ashley Mireles says her comment was fake. It included this statement, which appeared in 74 other comments: 'Payday loans have helped me on multiple occasions when I couldn't make an insurance payment.' Clusters of similar-length sentences Carla Morrison of Rhodes, Iowa, says her comment was fake. It included this statement, which appeared in 295 other comments: 'This is my only good option for borrowing money, so I hope these rules don't happen.' 200 400 Times a sentence appears (across 200,000 comments) Sources: Consumer Financial Protection Bureau; Quid Inc. 600 THE WALL STREET JOURNAL. to rescind the Obama/ Wheeler plan to control the web to reverse the Obama/ Wheeler order to control the web to repeal the Obama/ Wheeler scheme to regulate the web the commission I strongly demand the FCC to rescind Sources: WSJ analysis of Federal Communications Commission data, Quid Inc. Shane Shifflett/THE WALL STREET JOURNAL. Barack Obama’s order to take over the web Jack Hirsch says his name was on a phony submission to the FCC. poured into the FCC after HBO’s “Last Week Tonight with John Oliver” urged viewers to support the Obama policy. They were followed by thousands backing repeal. Chicago programmer Chris Sinchok said he spotted a sharp increase in comments that began: “The unprecedented regulatory power the Obama administration imposed on the internet is smothering innovation.” He found a near-constant rate—1,000 every 10 minutes— punctuated by periods of zero comments, as if web robots were turning on and off. He determined many were from hacked accounts. After Mr. Sinchok and a pronet-neutrality group, Fight for the Future, blogged that they found indications thousands of FCC comments might be fakes using stolen identities, New York Attorney General Eric Schneiderman in May began a criminal investigation. The Journal examined those “unprecedented regulatory power” comments. Duplicates of it exceeded any other comment, according to Quid Inc., a San Francisco tech firm that analyzes massive amounts of content and studied the data at the Journal’s request. The comment has been posted on the FCC website more than 818,000 times. The Journal sent surveys to 531,000 email accounts associated with that comment. More than 7,000 bounced back, the accounts defunct. Of the 2,757 who responded, 1,994, or 72%, said the comment was falsely submitted. The survey’s margin of error was plus or mi- nus 1.86% points. The survey’s results are “a very significant indication of fraud,” Mercury Analytics CEO Ron Howard said. “Generating tens and sometimes hundreds of thousands of fake posts on public comment websites for the purpose of swaying public opinion and impacting the opinions of political decision makers is widescale,” he said, “not limited to a party, not limited to an issue,” Though a majority of those who responded agreed with the comments attributed to them, many were alarmed their identities had been misappropriated. “How the hell is this possible ??????” Jessica Lints of Blossvale, N.Y., wrote the Journal. “And if these people are so damn concerned about this issue that I know nothing about why are they not using their own names?” Mrs. Lints, an assistant Boy Scout scoutmaster, said she is careful about not expressing political opinions. The Journal also examined 2.8 million of the 23 million comments in four clusters and sent surveys to 956,000 of those addresses—including the 531,000 sent to the “unprecedented regulatory power” commenters— seeking to verify the people made the comments. Based on the responses, three batches expressing anti-regulatory viewpoints were 63%, 72% and 80% bogus comments. The fourth set, in favor of the old rules, was 32% bogus. Mr. Hart, the FCC spokesman, said the “most suspicious activity has been by those supporting Internet regulation.” He said the FCC received more than 7.5 mil- IssueHound played a role in anomalies the Journal found on the CFPB’s site seeking comment on its proposal to tighten payday-lending rules, set to take effect July 2019. Quid reviewed the 200,000 “unique” comments the CFPB posted on its payday-lending proposal. They weren’t entirely unique. More than 100 sentences opposing the payday rule each appeared within more than 350 different comments. This sentence was embedded in 492 comments: “I sometimes wondered how I would be able to pay for my high power bill, especially in the hot summer and cold winters.” The Journal emailed about 13,000 surveys to those posting comments to the CFPB site. About 120 completed surveys. Four out of 10 said they didn’t send the comment associated with them. These comments opposed the new regulations. Ashley Marie Mireles, 26, said she didn’t write the comment posted on the CFPB’s website under her name but had clues how it got there. Her former employer, payday lender California Check Cashing Stores, told branch personnel in Clovis, Calif., to fill out an online survey after too few customers did, she said. In the survey, she said she received a payday loan for “car bills.” She had borrowed $50 to patch a tire. On July 8, 2016, a 217-word comment with Ms. Mireles’s name and email was sent to the CFPB, reading, in part: “I had no idea the bill would be as expensive as it was after I took my car to the shop. To help me pay for everything, I went to get a cash loan.” Untrue, she said. Her family owns an auto shop where she doesn’t pay. Bridgette Roman, spokeswoman for California Check Cashing, denied Ms. Mireles’ account, saying customers were offered a computer that walked them through creation of “a customized comment” on the rule and were told it would be submitted to the CFPB. “The former employee was mistaken or confused.” Ms. Mireles’s comment showed it originated from IssueHound and TelltheCFPB.com, a site used by a payday-lending trade group. The trade group, Community Financial Services Association of America, used IssueHound and TelltheCFPB.com to send comments on the payday-lending rule, said Dennis Shaul, the group’s CEO. Told of the Journal findings, he said: “We cannot begin to speculate as to why that is.” He said he had asked member lenders not to use coercion or gimmicks in the campaign and that they generated tens of thousands of handwritten notes. “I’m very disappointed to hear this, and it is not at all the outcome we expected.” IssueHound’s Mr. Smith said: “There is little more I can say about the letters as we simply license the platform.” The late Ms. Duthie’s phony comment was among copy-andpaste-style comments that dominate the FCC docket. One under Ms. Duthie’s name was submitted with the email address of her ex-husband, Peter Duthie. It began: “FCC: Hi, I’d like to comment on Internet Freedom.” That sentence, including two spaces after the colon, opened 974 comments. Mr. Duthie said he didn’t submit it. He did file, he said, a comment opposing the Trump-administration plans. ly . Barack Obama’s ERIC KAYNE FOR THE WALL STREET JOURNAL It is a federal felony to knowingly make false statements to a U.S. agency. Government Accountability Office seeking an investigation. The GAO said it already had plans next year to begin examining the FCC’s information-security controls, including over internet comments. It is difficult to determine who is behind phony comments. The Journal found clues in data embedded in online documents, which showed more than 4,000 fake comments had been submitted to the CFPB through IssueHound, a Richmond, Va., firm. It charges interest groups to use its software and create websites to gather hundreds and thousands of like-minded people to write unique comments or send prewritten statements to lawmakers and regulators. Its website says it “randomly selects related paragraphs and generates unique letters.” Jay Thomas Smith, an IssueHound spokesman, said clients “use our program because it affords greater flexibility for letterwriters, more accurately expressing the writer’s views on an issue,” adding that the software “requires human input.” He declined to comment on CFPB-rule work. Dubious Opinions co Fo m rp m e er rs ci on al a us l, e on Continued from Page One tant element of democracy, the public’s ability to participate in federal rule-making. The publiccomment process, mandated by law, can influence outcomes of regulations affecting millions. It is a federal felony to knowingly make false, fictitious or fraudulent statements to a U.S. agency. The scope of the fake comments is evident on the FCC website in 818,000 identical postings backing its new internet policy. The agency is expected on Thursday to roll back President Barack Obama’s 2015 rules, which telecommunication companies have called onerous. Consumer groups and Internet giants such as Alphabet Inc.’s Google and Facebook Inc. back the Obama rules and have fought efforts by FCC Chairman Ajit Pai to nix them. In a random sample of 2,757 people whose emails were used to post those 818,000 comments, 72% said they had nothing to do with them, according to a survey the Journal conducted with research firm Mercury Analytics. “It makes me feel like our democracy is broken,” said Jack Hirsch, chief executive of software startup Butter.ai, who learned from the Journal his name was on a fake submission supporting the Trump-administration position, which he opposes, saying it would harm his San Francisco firm. Agencies generally accept public comments via email, mail or hand delivery. Some let people post directly onto their websites. Some require registration first or collect comments and then publicly post them later. The Journal heard from people reporting fraudulent postings under their names and email addresses at the FCC, Consumer Financial Protection Bureau, Fed- n- FAKE agency official said the bureau doesn’t verify each comment and doesn’t require commenters to submit the type of information that might assist in authenticating their comments. FERC spokeswoman Mary O’Driscoll, asked what the agency does to verify commenters’ identities, said: “If someone believes that they have been misrepresented in comments filed with us, they should contact us to let us know.” FCC spokesman Brian Hart said questionable comments on its net-neutrality rule included some “submitted in the name of Superman and Batman, among others. These comments, however, are generally not substantive so thus have no impact on a rulemaking.” Asked what the FCC does to verify identities, he said: “We err on the side of keeping the public record open and do not have the resources to investigate every comment that is filed.” Under the Administrative Procedure Act, agencies must take comments under consideration but needn’t pay heed to them. The impact often comes afterward, when the regulated parties appeal to the next administration, the courts or Congress, which can alter a rule or slow its implementation. Failure to consider comments has become a factor in litigation, with judges sometimes forcing an agency to address comments it ignored. “Astroturf lobbying”—typically when an interest group gins up support from individuals and characterizes it as a grass-roots movement—has been around Washington for decades. Agencies were already swamped with comments from these mass emailings of duplicate comments, which aren’t considered fraud if groups submitting them have authorization from individuals named. The CFPB last year had such a hard time managing the 1.4 million comments on its payday-lending rule that it fired one contractor and hired a new one to process them, according to internal emails released under the Freedom of Information Act. As with many agencies, the CFPB opts not to put many of the duplicative comments online. It posted 200,000 “unique” comments out of the 1.4 million on its payday-lending proposal. But postings the Journal uncovered went beyond being merely duplicative. They included comments from stolen email addresses, defunct email accounts and people who unwittingly gave permission for their comments to be posted. Hundreds of identities on fake comments were found in an online catalog of hacks and breaches. While many fakes were antiregulatory, the Journal also found pro-regulatory comments on the FCC and FERC websites where people said they didn’t post them. In most of those cases, the people surveyed said they agreed with the comments, indicating that while they didn’t authorize them, a group or individual might have had their names in a list of like-minded people, possibly from the organization posting it. Some of these people said they were angry that someone who had access to their email address would post it, even though they agreed. lion comments consisting of the same short-form letter supporting the current rules, “all generated by a single fake e-mail generator website.” He said the FCC received more than 400,000 comments supporting the old rules “from the same address in Russia.” A review of the FCC comments by data-analytics firm Emprata determined that 36% of the docket, 7.75 million comments, were attributable to FakeMailGenerator.com, a site that generates one-time emails and can’t receive emails. The analysis was commissioned by a group of telecommunications firms that support the Trump-administration proposal. These contained nearly identical comments, virtually all opposing the proposal, Emprata said. Emprata CEO Paul Salasznyk said “our analysis was conducted in an independent fashion.” Efforts to locate FakeMailGenerator.com representatives weren’t successful. Reports of the fake FCC comments have led some lawmakers to demand probes. After Fight for the Future said it found about 24 people saying they hadn’t posted the “unprecedented regulatory power” comment, Rep. Frank Pallone Jr. of New Jersey asked the Justice Department to investigate those comments as criminal acts. The Justice Department hasn’t responded to the request, Mr. Pallone’s spokesman said. Justice spokeswoman Lauren Ehrsam confirmed the letter was received, declining to comment further. Mr. Pallone and 10 other members last week wrote the 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. Wednesday, December 13, 2017 | A12A NY * * GREATER NEW YORK Attacks Show ‘Lone Wolf’ Problem Cuomo Wants Suspects acting alone are harder to foil, experts say, because they have a low profile Extremist Content Restricted BY MIKE VILENSKY BY JACK NICAS YANA PASKOVA FOR THE WALL STREET JOURNAL An officer watched commuters Tuesday in an underground tunnel where a day earlier suspect tried to set off an explosive device. alienate people and create division that’s counterproductive,” he said. It is easier for police to foil a terror plot involving a group or network of suspects, law enforcement experts said. Officials have become skilled at picking up signs that individuals may be involved in such a network, such as traveling back and forth between certain countries, engaging in large financial transactions and communicating with one another, experts said. Former NYPD commissioner Raymond Kelly said lone wolves aren’t a new phenomenon but are becoming a bigger concern. “It’s much more difficult to stop an individual like this,” he said. “The profile is lower and difficult to identify before they attack.” After Monday’s attack, New York Gov. Andrew Cuomo suggested internet providers consider changing their policies to respond when users visit extremists sites. Former NYPD counterter- rorism assistant commissioner David Kelly said Tuesday that technologies to monitoring internet activity for terror suspects will likely be enhanced to thwart lone wolves. But that, too, can be tricky. “These are controversial issues” that would pit civil rights versus safety tactics, he said. “There’s no perfect solution to finding every one of these people.” —Zolan Kanno-Youngs, Mara Gay and Corinne Ramey contributed to this article. n- no Turning to a novel fix to address a vexing problem, New York City Mayor Bill de Blasio said he is prepared to use eminent domain to buy apartments that already house homeless people and turn them into permanent affordable housing. “We have a very powerful tool and we’re ready to use it,” Mr. de Blasio said at a news conference Tuesday in the Bronx. “Addressing homelessness is a public good.” The mayor said the city would seek to buy 25 to 30 apartment buildings, mostly in the Bronx, and convert them into rent-stabilized housing by the end of 2018. Included in the initiative are buildings in which at least 50% of tenants are homeless and living in apartments paid for by the city, an arrangement known as a cluster site. Jack Freund, executive vice president of the Rent Stabilization Association, a business group, said he believed the proposal could be tied up in litigation for years. “The city would probably have a good case for eminent domain, but that doesn’t make it right,” he added. More than 72,000 people are living in shelters across the city, according to data compiled by the U.S. Department of Housing and Urban Development. Homelessness has long been a political challenge for Mr. de Blasio, a Democrat elected vowing to address income inequality in the city. He sharply criticized former Mayor Michael Bloomberg, a Republican turned independent, for the steep rise in homelessness during his tenure, but the trend has continued in Mr. de Blasio’s first term. BEBETO MATTHEWS/ASSOCIATED PRESS Eminent Domain Could Help City House Homeless BY MARA GAY An apartment building in the Bronx where housing has been made available for homeless people. In February, Mr. de Blasio laid out a plan to build 90 new shelters during the next five years. He has said the city would end the use of private apartments to house homeless people by 2021. There are about 2,300 such sites across the city. Critics of the practice, including Mr. de Blasio, say the apartments offer no services to vulnerable communities that need them most, and that in some cases millions in taxpayer dollars have been given to landlords who fail to make their buildings livable. Housing homeless families in the private buildings costs about $71 million every year. Mr. de Blasio declined to provide a cost estimate for the new initiative, saying that doing so would hinder the city’s negotiation with landlords. City officials said they had begun approaching building owners with proposals. Mr. de Blasio said Tuesday that acquiring the buildings would allow the city to make improvements for those who live in them, and add to the city’s affordable-housing supply. He said the city would negotiate “in good faith,” but he is willing to use eminent domain to buy the buildings in cases where the owner refused to sell. A nonprofit eventually would manage the buildings. “We’re asking them to do the right thing,” Mr. de Blasio said. But, he added: “One way or another we will achieve the goal.” Mayor, City Council Reach Deal on NYPD Stops BY MARA GAY The New York City Council and Mayor Bill de Blasio have reached an agreement on legislation to tighten restrictions on police stops, ending years of negotiations and angering activists who said the measure doesn’t go far enough. One bill would require New York Police Department officers to identify themselves by name, rank and command to anyone they stop based on suspicion of criminal activity. Initially, the requirement would have applied to virtually every interaction between officers and civilians. Another bill would require officers to get consent from individuals before conducting a street search without probable cause or a warrant. The measures collectively are known as the Right to Know Act. The mayor, a Democrat who came to office promising to curb police abuses, had long opposed the legislation, saying he feared it would impede the ability of police to do their job. On Tuesday he said he supported the compromise, and would sign the bills if they are approved by the City Council. The narrowing of the legislation drew withering criticism from Communities United for Police Reform, which pushed for tougher measures. Monifa Bandele, the group’s spokeswoman, said Councilman Ritchie Torres, a Bronx Democrat who sponsored the bill, had “entirely disregarded communities and New Yorkers most impacted by police abuses.” Mr. Torres said some policereform advocates were unwilling to compromise. “Nothing short of abolishing policing will New York Gov. Andrew Cuomo urged internet companies to reassess their approach to extremist content following the revelation that the man accused of detonating a homemade pipe bomb in New York City downloaded bomb-making information from the internet. Akayed Ullah, a 27-year-old electrical worker from Bangladesh, detonated the explosive device in an underground tunnel that connects to the crowded Times Square subway hub, police said. The explosive fizzled and injured three people in addition to Mr. Ullah. Internet companies should re-examine their policies regarding how best to respond when users visit extremist websites, Mr. Cuomo said. Mr. Ullah told investigators he had followed Islamic State writings on the internet, a senior law-enforcement official said. While it is unclear where exactly Mr. Ullah found bombmaking instructions, such content isn’t hard to find on the internet. ly . NYPD in trouble over civil rights. The department faced two lawsuits that alleged it had illegally surveilled Muslims. In a March settlement, the NYPD didn’t admit wrongdoing but agreed to add greater civilian oversight to its surveillance program. On Tuesday, New York Mayor Bill de Blasio said he had no plan to rethink the city’s current approach to fighting terrorism. “Going back to the broken approach to surveillance would only co Fo m rp m e er rs ci on al a us l, e on Recent “lone wolf” attacks in New York present a challenge for law-enforcement officials and government agencies: how to identify terrorists acting alone before they strike. The suspect in this week’s attack near the Port Authority Bus Terminal, Akayed Ullah, read pro-ISIS materials and researched how to build a bomb online before detonating one strapped to his body, according to a federal complaint filed Tuesday. Officials believe he acted alone. His alleged path to terror is similar to other recent suspects. In October, officials said a man who drove a rented truck along a lower Manhattan bike path, killing eight, was radicalized in the U.S. and acted alone. A man convicted of planting bombs in Manhattan’s Chelsea neighborhood and New Jersey last year didn’t appear to have formal links to terror networks. Preventing lone wolf attacks is “very difficult and it’s getting harder,” John Miller, deputy commissioner for intelligence and counterterrorism for the New York Police Department, said in a CBS television interview Tuesday. Past tactics for thwarting such attackers have gotten the satisfy them,” he said. The council is expected to vote on the bills next week. Patrolmen’s Benevolent Association President Patrick Lynch said he remained opposed to the Right to Know Act. The legislation, he said, is part of a “continuous piling on of new burdens.” An NYPD spokesman didn’t respond to a request for comment. Google says it only removes content from search results because of legal issues. Google, the world’s most popular search engine and a unit of Alphabet Inc., says it generally only removes content from search results because of legal issues. For example, it pulled bomb-making content from the U.K. because such information is illegal there. In the U.S., Google has said it instructs reviewers to mark violent or hateful content as low quality, which will likely move such sites lower in search results. Technology companies in general have taken recent steps to better police extremist content on their platforms, but they still struggle to catch it all. Extremists post their videos, photos and messages on a variety of internet sites, and their followers often download the content and re-upload it after it is pulled down, said Lara Pham, deputy director of the Counter Extremism Project, which tracks such content online. Following criticism from authorities and researchers this year, Google has pulled down thousands of extremist videos on YouTube, including most footage of the late Anwar alAwlaki, the radical American cleric who has been the leading English-language terrorist recruiter. Still, extremist videos that have been pulled from YouTube often are also still available on the internet-archival site archive.org, Ms. Pham said. Extremists also share content in the so-called dark web, or websites that aren’t indexed by internet search engines, she said. Officials from archive.org didn’t immediately respond to requests for comment. —Joseph De Avila contributed to this article. OYSTER PERPETUAL LADY-DATEJUST 28 rolex oyster perpetual and DATEJUST 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 | Wednesday, December 13, 2017 NY * * THE WALL STREET JOURNAL. GREATER NEW YORK METRO MONEY | By Anne Kadet The other day, right in my own neighborhood, I stumbled across a rare and wonderful find: A $1 cup of coffee. It was like finding a unicorn in my backyard. And this 10-ounce brew, from Iris Café Store #7, a small Brooklyn Heights grocery, wasn’t the watery nonsense one expects in a cheap coffee. This was a good, strong cup made with a fancy local bean brand. The exact same coffee costs $2.76 at another cafe just blocks away. How was this miracle happening? “I lose on the coffee,” says owner Radi Hamdan. But Mr. Hamdan, who grew up in the area and drove a wholesale produce and mozzarella truck before launching his business nearly a decade ago, says a $1 coffee just feels right. “There is something, you know, neighborhoody about ROB WILSON FOR THE WALL STREET JOURNAL A $1 Cup of Coffee in NYC? Fuhgeddaboudit it,” he says. I’m with Mr. Hamdan. A small coffee should cost $1. Too bad that typically is unrealistic, especially in New York City. Mike Kruszewski, founder of recently shuttered Manhattan cafe Pourt, and a fellow who shares my fascination with coffee economics, took time to crunch the numbers. The ingredients in a small cup of high-end, direct-trade, “sustainable” coffee cost 62 cents, he says. That includes 43 cents for the beans, 14 cents for the cup, sleeve, lid, and stirrer, and 5 cents for milk and sugar. But a cafe owner also has to pay rent on a New York City storefront, not to mention wages, insurance, supplies, utilities, trash service, software and payment processing. All told, says Mr. Kruszewski, expenses easily reach $600 a day. If a cafe only sold $1 coffee, he says, it would have to sell 2,150 cups a day to just break even. That’s 3.5 cups a minute. The barista would have to serve faster than humanly possible. At $2 a cup, the cafe would have to sell 500 cups a day, or one cup a minute— still too much volume for a small business. “At $3.50,” says Mr. Kruszewski, “we get to a doable 250 cups a day.” Cafes offer a wide range of food and drink, of course, so they don’t need to charge $3.50 for drip coffee. Curious about the typical price for a small takeout coffee in Manhattan, I surveyed 40 spots in the Financial District, chosen because the area caters to a wide worker demographic and offers relatively reasonable retail rents. I included everything from kebab carts and delis to Starbucks. While prices ranged from $1 to $3, the average cost for a small coffee was a pricey $1.86. The median was even higher: half cost $2 or more. The best price predictor was whether the business billed itself as a coffee joint. The average price at a specialty shop—be it Starbucks or a local outfit such as Gregorys Coffee—was $2.46. The deli average, meanwhile, was just $1.46. Delis pay less for their coffee, of course—about $6 a pound compared with the $12-a-pound coffee offered by a typical cafe. And delis often offer a weaker brew. While the recommendation is to extract 30 10-ounce servings from a pound of coffee, many delis go for 38, says Jonathan White, executive vice president of White Coffee, a Queens roaster supplying beans to thousands of area businesses. Still, the delis’ cost adds up to about 40 cents for a small cup, says food-service consultant Dimitri Kafchitsas of Jet Set Communications. Given the rule that ingredi- ent cost should not exceed 30% of the menu price, you’ll seldom find coffee selling for less than $1.25, he notes. The exceptions: Street carts, which pay no rent, and mega chains such as McDonald’s and 7-Eleven that enjoy massive economies of scale. If anyone else offers $1 coffee, says Mr. Kafchitsas, it is likely a marketing gimmick. Indeed, Mr. Hamdan of Iris Café says he was hoping his $1 coffee deal—which he advertises on a sidewalk sign outside his store—would lure new customers. Alas, that isn’t happening. Most people in Brooklyn Heights, “can’t wait to get their grande-vente-withcoco-cappuccino-and-doublesleeves and pay their $7,” Mr. Hamdan says. “They’re like, ‘Dollar coffee? What’s wrong with that coffee? Forget it! I don’t want that!’ ” email@example.com GREATER NEW YORK WATCH SON OF SAM Lawmaker Launches Gubernatorial Run Bergen Prosecutor Is Serial Killer Berkowitz Attorney General Pick Is Moved to Hospital The leader of the New York Assembly Republican conference, Brian Kolb, announced Tuesday he is running for governor, the first Republican to enter the 2018 race against Democratic Gov. Andrew Cuomo. Mr. Kolb has represented the Finger Lakes Region as a state assemblyman for nearly 18 years. He was elected to lead the minority GOP conference in 2009. He believes “we can do better,” he said in an interview. “Whenever I ask the question is New York government working for you, 98% of people say it is not.” —Mike Vilensky Democratic Gov.-elect Phil Murphy on Tuesday announced his nominee for attorney general, picking a Chris Christie-appointed prosecutor who Murphy said would stand up to President Donald Trump. Mr. Murphy said that Bergen County Prosecutor Gurbir Grewal would be the first Sikh attorney general in the state and country. Mr. Grewal is a former assistant U.S. attorney in the criminal division in the New Jersey district and served as a prosecutor in the Eastern District of New York. —Associated Press co Fo m rp m e er rs ci on al a us l, e on The “Son of Sam” serial killer who terrorized New York City 40 years ago is in the hospital. New York state prison officials said Tuesday that 64-yearold David Berkowitz was transferred to a hospital from the upstate maximum-security prison where he is serving a life sentence. The New York Post and the Times-Union of Albany reported that he was transferred to undergo heart surgery. Berkowitz set the city on edge with late-night shootings that killed six people and wounded seven before his 1977 arrest. —Associated Press MICHAEL NOBLE JR. FOR THE WALL STREET JOURNAL NEW JERSEY ly . NEW YORK STATE Sandra Di Capua of Co.create NYC at a cereal cafe the company is opening in Manhattan with Kellogg. Snap, Crackle, Pop Beyond Breakfast For many Americans, the morning bowl of cereal is a simple affair, perhaps topped with a sprinkle of sugar or fruit and consumed quietly at the kitchen table. But at Kellogg’s NYC, a cereal “cafe” set to open Thursday in Manhattan’s Union Square neighborhood, that bowl is designed to be a template for gourmet creativity. At the 5,000-square-foot space, customers can enjoy their cereal with toppings that range from candied kumquats to rum-roasted bananas to peanut-butter chips. The seating speaks to a similar break-the- mold approach, with options that include couches, beanbag chairs and even hammocks. And in case all that isn’t enough to capture a diner’s attention, the cafe will offer Nintendo, board games and free Wi-Fi. The cafe is owned and operated by the Michigan-based Kellogg Co. and hospitality firm Co.create NYC. It replaces a 1,000-square-foot store the partnership launched last year in the Times Square area and ran until this past summer. In developing the new space, Kellogg and Co.create NYC officials say they sought to build on the strong response to the previous cafe by offering more amenities and no n- BY CHARLES PASSY menu options such as Pop-Tart ice cream sandwiches. The goal is to encourage customers to see cereal as a food option well beyond breakfast. Behind the goal is a stark reality: Cereal consumption has been on the decline for several years, as Americans turn to other foods such as Greek-style yogurt, for their morning meal. In the past year alone, Kellogg has seen quarterly sales in its “morning foods” segment decline by 3% to $710 million. Ultimately, the cafe is about pushing cereal “forward to the modern age,” said Aleta Chase, a Kellogg marketing executive. Kellogg and Co.create NYC officials declined to say how much they are paying in rent. Restaurant-industry insiders say the rent easily could top $1 million annually, which, in turn, could make turning a profit a challenge. That is especially true given the relatively low pricing of the cafe’s menu items—a bowl of cereal runs $1.50-$7.50. Adding to its challenges: Other cereal-themed establishments have opened in the city. Among the latest is Milk & Cream Cereal Bar, a Little Italy spot that offers blended cereal and ice cream. CORRECTIONS AMPLIFICATIONS 3 D AYS A U TO M AT I C ORO ROSSO - Ø 42MM / 4 5MM ( R E F. 67 7 - R E F. 67 5 ) AMERICANA MANHASSET . TEL. 516 627 7475 EAST HAMPTON . TEL. 631 329 3939 Andres Kudacki of the Associated Press shot the photograph of law-enforcement officials outside the Port Authority Bus Terminal in Manhattan after an attempted terrorist bombing, which was published Tuesday with an article about increased security in the city. In some editions, the image was incorrectly credited to Drew Angerer of Getty Images. Real-estate agent Paula Del Nunzio of Brown Harris Stevens represented the sellers in an approximately $80 million deal for a Manhattan townhouse. An article Monday about the deal incorrectly said Ms. Del Nunzio represented the buyer. WESTFIELD AT WORLD TRADE CENTER . TEL. 212 381 9455 Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. 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. BEST MUSIC OF 2017 | By Jim Fusilli Sounds Both Familiar and Fresh n- environment is ideal for the troubling lyrics of the disc’s dual themes of lost love and a society under threat. Since 1996, Thievery Corporation has employed dub and reggae in its down-tempo trip-hop, and with “The Temple of I & I” (ESL) it does so again in a big way. Percolating tracks feature a pleasing mix of vocalists and rappers whose contributions, along with the versatility of Rob Garza and Eric Hilton’s band, give it the feel of an easy-flowing mixtape with a Jamaican heart. On “The Iceberg” (Mello Music), Oddisee delivers his raps in a crisp, textured setting that taps into funk, Go-Go, hiphop, jazz, pop and R&B for its propulsion, aided ably by bassist Dennis Turner and guitarist Olivier St. Louis. Oddisee, a Sudanese-American artist whose birth name is Amir Mohamed el Khalifa, tops the music with provocative, up-to- the-minute commentary about racism, sexism and xenophobia. A form of electronica that came to the fore in the 1990s, footwork has been liberated from its definition as frantic dance music by Jlin, stage name of composer-producer Jerrilynn Patton. On “Black Origami” (Planet Mu), she explores Middle Eastern and South Asian modes, African percussion and chants, and a variety of tempos and unexpected interludes that at times drive her compelling tracks to sound like minimalism filtered through house music and the rattle of Chicago’s L. The subtle insistence of Moses Sumney’s longawaited and gorgeous debut, “Aromanticism” (Jagjaguwar), is the result of his patient application of his falsetto, often layered to create a choir, that’s supported by his guitar and lightly applied brass, clarinets, flutes, harp and strings. There are elements of the blues, chamber music, folk, folktronics and soul in “Aromanticism,” but they meld into a feathery work that is as distinct as it is beautiful. On “I See You” (Young Turks), the xx blossoms from a quiet, introspective ensemble into a trio that creates music that has the vitality of unbridled electronica, magnetic appeal of from-the-heart ballads, and undeniable vitality of pop. Oliver Sim and especially Romy Madley Croft emerge as powerful singers amid the seductive, subtly unorthodox settings by producer Jamie Smith. Twenty-two years between albums hasn’t diminished the impact of Slowdive’s atmospheric shoegaze. On their superb self-titled return on the Dead Oceans label, Neil Halstead and Rachel Goswell’s voices are bathed in creamy clouds of synths, guitars and Nick Chaplin’s rounded bass. Great pop for grownups is a rare commodity, but on “Fake Sugar” (Virgin) Beth Ditto delivers; the former singer of the punk-meets-dance-music band Gossip doesn’t so much burst into song here as slyly slink in until the music requires her to let go. With producer Jennifer Decilveo, Ms. Ditto sands away her former punk edge but keeps intact her natural defiance. “Reflections of a Floating World” (Stickman) by Elder is brooding, powerful metal-meetsprog rock that builds deliberately to its roaring peaks and, despite flawless unison playing and abrupt tempo changes, has the feel of improvisational music. Drummer Matt Couto and bassist Jack Donovan are the brutal engine that drives guitarist Nick DiSalvo, who is full of tricky, thoughtful surprises. Mr. Fusilli is the Journal’s rock and pop music critic. Email him at email@example.com and follow him on Twitter @wsjrock. CLOCKWISE FROM TOP: TOM HINES; INGRID POP; MAHDUMITA NANDI no IN 2017, the most intriguing and satisfying popular music was both familiar and fresh, a result of talented musicians embracing risk and blurring the lines between genres to explore new sonic modes. Here are a dozen of my favorites among the great works by veteran artists and compelling newcomers who excelled in rock and pop. Now in its 25th year, Spoon marries customarily assured performances and Britt Daniel’s smart, traditional rock songwriting with adventures in arrangements on its “Hot Thoughts” (Matador). If the Beatles come to mind while the album unfolds, it isn’t merely as an influence but as a sign of the recording’s superior quality. On “Prisoner” (Pax-Am), his 16th studio disc as solo artist, Ryan Adams writes of the time when a man realizes his marriage has ended but he isn’t ready to move on. Far from weepy, its 12 songs are conveyed with a powerful, determined mix of Americana, arena rock and pop that suggests Mr. Adams leaned hard on his ample gifts in a quest for equilibrium. With “The Lonely, the Lonesome & the Gone” (ATO), Lee Ann Womack places her pure, powerful voice and knowing, bittersweet delivery amid a loose, occasionally nasty—snarling rock guitars, crunchy drums—mix of traditional country, gospel and roots music. The album bristles with a “take me as I am” attitude that’s a gutsy reflection of Ms. Womack’s maturity and hard-won independence some 20 years after her debut. Though Grizzly Bear retains its gorgeous vocal harmonies and gift for unconventional song structures, on “Painted Ruins” (RCA), its first album in five years, the quintet inches away from light folk-rock and projects a tougher, heavier sound that’s no less melodic. Informed by bassist and producer Chris Taylor, the darker co Fo m rp m e er rs ci on al a us l, e on ly . LIFE&ARTS Wednesday, December 13, 2017 | A13 PHOTO ILLUSTRATION BY SEAN McCABE; PHOTOS: NOAH ABRAMS; ZACKERY MICHAEL; TIM BUGBEE; MARY MCCARTNEY; JEN MALER; EBRU YILDIZ; GETTY IMAGES (3) THE WALL STREET JOURNAL. Jlin, above left, Slowdive, above right, and Grizzly Bear, above center; top, clockwise from center: Beth Ditto; Rob Garza and Eric Hilton of Thievery Corporation; Lee Ann Womack; Moses Sumney; Romy Madley Croft of the xx; Michael Risberg, Jack Donovan, Matt Couto and Nick DiSalvo of Elder; Ryan Adams; Oddisee; and Britt Daniel of Spoon 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 | Wednesday, December 13, 2017 LIFE & ARTS MY RIDE | By A.J. Baime A ’64 Chevy Still at Work in Big Sky Country Hannibal Anderson, a school administrator living in Mountain Village, Alaska, and his son Daniel, a contractor from Bozeman, Mont., on their 1964 Chevrolet C10 pickup, as told to A.J. Baime. From top left: son-in-law Andres Ramirez, son Daniel, father Hannibal and mother Julie in Tom Miner Basin, Mont., with their 1964 Chevrolet C10. Daniel hauls wood, below right. Hannibal’s granddaughter, Esme Ramirez, below left. ly . associate this truck with our family ranch. This past summer the truck came into a whole new chapter of its life. We got it running once again, and we used it for work and fishing trips. A filmmaker shot a short fly-fishing film here in Tom Miner Basin and Old Blue got some camera time, so it is getting kind of famous. It symbolizes struggle, resilience, grace and rebirth. To us as a family, that means a heck of a lot. co Fo m rp m e er rs ci on al a us l, e on Daniel Anderson: My father bought “Old Blue” from his father right around the time I was born. Growing up on our ranch in Montana, my siblings, my cousins, we would all get in the truck and pretend to drive it. Sometimes it would die and it would be left in a field for a couple years, then someone would get inspired to get it running again. When I got my driver’s license, the truck was one of the first vehicles I drove. Both my parents, my uncles, my brother-in-law, siblings, ranch workers, all of us have driven the truck at different points in time, and we have all come to LOUISE JOHNS FOR THE WALL STREET JOURNAL Hannibal Anderson: In the mid-1970s, my father needed a truck for utility work on the family ranch in Tom Miner Basin in Montana and for another ranch he had in the Mojave Desert in California. My early memories of the truck are of driving it back and forth between the ranches and of the work we had to do: hauling firewood, and pulling horses in a trailer to and from cattle work. The truck had a 292 straight-six engine with pretty good torque, a really good engine for the kind of work we needed to do. Over the years, the family grew a special affection for the truck. Our family never viewed objects as things that you use and discard. The truck became meaningful in terms of our interaction with our work and our landscape. It was like a horse. The relationship went beyond the mechanical experience. I bought the truck from my father around 1980, for somewhere around $500. Contact A.J. Baime at Facebook.com/ajbaime ADVERTISEMENT Showroom To advertise: 800-366-3975 or WSJ.com/classiﬁeds AVIATION LEASE ; 46 ) ; < 6 4+ ; = ; / 78 , 98 )68 (& : -7 7 Nationwide delivery. We offer all current makes & models for less. Call 7 days. Trades accepted. ! " ## $%& ' ($ ) * ($ +, - ' n- no Buy or Lease for Less LUXURY ./ ( , - ' ./ 0 - % ) / ' -1 (2' -1 - !3" ## $%& -1 - ' -4546 3 $ (- ' $ (-' ' 3 $ (- 3 $ (- ! " ## $%& $ ( ! " ## $%& $ * & $ & %5 % %5 % / 877.989.1500 www.LEASEFAX.com THEMART ADVERTISE TODAY (800) 366-3975 firstname.lastname@example.org © 2017 Dow Jones & Company, Inc. All Rights Reserved. FERRARI !" # ! 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"! ! ! ! 02) +2 , +$0 # " ' ' /#) ' ' -1 4) . 02) 4) . ! ..! .! 1! .! /63/(7*, 3//(/6*((* " ' *89'&+ " # $% # " ! /(/3*,/ For more information visit: wsj.com/classifieds 3#) : & (800) 366-3975 email@example.com "1! /#) ' .! " ! !" !##$ % © 2017 Dow Jones & Company, Inc. 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. THE WALL STREET JOURNAL. Wednesday, December 13, 2017 | A15 LUCASFILM LTD. (3) LIFE & ARTS WITH DUE RESPECT to all the FILM REVIEW | By Joe Morgenstern spectacular stuff that will feed the planet’s appetite for a new episode—and to the solemnity of Mark Hamill’s battle-weary Luke— “Star Wars: The Last Jedi” lives most vividly in two of its women: General Leia Organa, who’s played by Carrie Fisher for the last time (mostly, and poignantly, in the film’s turbulent present, though also in a flash of hologram that reminds us how bright and dear Princess Leia was when we first met Top to bottom: John Boyega her all those decades as Finn and Gwendoline ago); and Daisy RidChristie as Captain Phasma; ley’s Rey, the former Daisy Ridley as Rey; Mark scavenger of unknown Hamill as Luke Skywalker. parentage who is the story’s driving force— as distinct from Force. Unswerving in her courage and touching in her simplicity, Rey has the most moving line: “I need someone to show me my place in all of this.” It’s an irresistible invitation for us to care in a narrative that mixes, not always successfully, stirring moments and sensational action with angst and grim conflictedness on a galactic scale. The film, which Rian Johnson directed with great resourcefulness from his own screenplay, starts where “The Force Awakens” left off. (Literally, “Star Wars” themes, bomber pilot cries of course, it starts with the first though with striking early on. That’s very triumphant phrase of the John Wilsurprises about who’s much what people liams theme that must have taken on which side for do, whether they’re up residence in our genes by now, what reasons); and Dark or Light, nasty given the sense of anticipation it Rey’s obsessive conor nice. Oscar Isaac’s triggers.) The rebels are in full recerns about where intrepid fighter pilot treat verging on extinction. Rey has she came from as Poe Dameron sets a sought out and found Luke Skywell as where she bejaunty tone in a walker, a monkish self-isolate on a longs and what she’s quirkily virtual confaraway island of a really faraway destined for. During frontation with planet. The question is what comes one of many stunning Domhnall Gleeson’s next—will Luke return to the cause sequences in the proHux, a First Order he once championed and become duction, which was general with a tremuits savior? designed by Rick lous upper lip. That’s only the most pressing Heinrichs and photoSnoke’s regal blackquestion, and pressing is putting it graphed by Steve and-red chamber mildly, since the hateful First Order, Yedlin, Rey seeks her looks like a set from under its Supreme Leader Snoke— parents’ identities in the glory days of Andy Serkis, digitally uglified once a subterranean hall MGM musicals. An again—is about to obliterate what’s of mirrors, which reflects on her and his debut film “Brick,” a noir exploration of the shattered relaleft of the rebel fleet. Larger issues well but not all that helpfully. (No crime drama set in a high school, tionship between Luke and his in “The Last Jedi” include the naAncestry.com for her, poor baby.) were notable for their visual ennephew, the malefic warrior Kylo ture of heroism (Luke being a great Mr. Johnson has put his distincergy and precocious mastery of Ren (Adam Driver), recalls man who has rejected the greatthe movie medium. “The Last tive imprint on the franchise—no “Rashomon.” The filmmaker man theory of history); the paradox small achievement, considering the Jedi” extends his reach and, stretches time to explore the drama of power (Luke has rejected that thanks to the resources at his disenormous stakes of the enterprise, of grabbing a gizmo to push a buttoo); the Light-and-Dark duality of posal, his grasp. but no surprise either; his previton to drop a payload of bombs on our species (a Golden Oldie among “Look alive!” a young female ous features, especially “Looper” an enemy dreadnought, and no n- co Fo m rp m e er rs ci on al a us l, e on ly . Action and Angst of Galactic Proportions stretches it again when Laura Dern’s Vice Admiral Holdo, who has seemed to be a descendant of Captain Queeg, takes equally explosive action. At other points in the 152-minute film, time should have been compressed, and wasn’t. The storytelling bogs down in a middle section having to do with finding a codecracker who can gain access to an enemy destroyer. (A dubious character played by Benicio Del Toro isn’t sufficiently amusing.) Kylo’s inner conflicts, while central to the plot, leave him looking awfully mopey for long periods of time as he struggles to resolve them. (Those who live by the lightsaber should live by it rather than talk about it.) It’s hard to keep track of Finn, the charming renegade Stormtrooper played by John Boyega; he’s off on his own in several sections of a script that’s far from a model of organization. It’s harder still to know what to feel about a screechy species of toy-store merchandise called Porgs, even if one of the allegedly cute creatures gets to share, in an altered state, a funny scene with a salivating Chewbacca. (I’ll never forget the moment, in the fall of 1976, when I saw Chewy at the controls of the Millennium Falcon in the first “Star Wars” trailer. What? An ape flying a space ship? My bewilderment was joyous, and complete.) Taken as a whole, this eighth episode of the franchise will be porgnip for the faithful, though the answer to one of its Big Questions seems disappointing, and generously entertaining for the rest of us. After 40 years of rooting for Mr. Hamill’s Luke to prevail, it’s a shock, and an affecting one, to see him looking like Moses come down from the mountain, and sounding like a philosopher king. Mr. Johnson’s script gives us someone new to root for, a roundfaced maintenance worker named Rose (Kelly Marie Tran) who practices her own particularly resolute form of heroism. And his direction gives us a grand finale that’s truly grand, though hardly final: The last Jedi may not have been seen. FILM REVIEW | By Joe Morgenstern LOTS OF PEOPLE who were kids when the original “Jumanji” came out in 1995 remember the film with great affection: for its tale of a boy getting sucked into a junglehabitat board game, and for its computer-generated images—pioneering efforts at the time that look quaint to modern eyes. Now that digital wizardry can do anything but reform Congress, you might expect “Jumanji: Welcome to the Jungle” to be awash in special effects. Well, it is, up to a point; all sorts of wild fauna charge through lush flora. Yet this sequel turns out to be a comedy of manners, of all things, and an agreeable one, a movie that will get you laughing and suck you in. The set-up proceeds briskly, by the numbers—not such a bad thing, given what follows. The time is the present, and for a short while the only element of fantasy is the absence of iPhones and Apple computers—it’s a Sony film, so all electronic products have been placed accordingly. We’re introduced to four high-school kids who represent familiar archetypes: a painfully shy girl who doesn’t think she’s pretty; an insufferable princess who knows she’s beautiful; a scholastically challenged jock and a nerdy hypochondriac. So far so soso, but when the kids get sucked into an old videogame version of Jumanji—you knew that was coming, right?—something promising happens; they find themselves inhabiting the physiques of four avatars who represent, in special powers and specific weaknesses, everything they are not. That means kids embodied by the extravagantly bemuscled Dwayne Johnson, the vociferous and diminutive Kevin Hart, the deliciously droll Jack Black and the SONY PICTURES WHEN A BODY MEETS A NEW BODY Kevin Hart, Karen Gillan, Jack Black and Dwayne Johnson in ‘Jumanji: Welcome to the Jungle.’ exceedingly alluring Karen Gillan. I could tell you which kid gets stuck in which body, but I don’t want to spoil the fun. Suffice it to say that the match-ups give rise to surprising behavior—that’s where the comedy of manners comes in—and all four stars play their roles with a finesse that takes them right up to, but never into, the dead zone of self-parody. That’s a tribute to the director, Jake Kasdan, who worked from a script by Chris McKenna, Jeff Pinkner, Scott Rosenberg and Erik Sommers. It may have taken four writers, but the movie combines action with the very special effect of wit. 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 | Wednesday, December 13, 2017 SPORTS OLYMPICS L-R: ERIC CHRISTIAN SMITH/ASSOCIATED PRESS; STEVEN RYAN/GETTY IMAGES; JEFF WHEELER/TNS/ZUMA PRESS RUSSIA WON’T BAR ATHLETES FROM THE GAMES BY THOMAS GROVE AND SARA GERMANO MOSCOW—Russia’s Olympics authorities opted against a boycott of the 2018 Winter Games Tuesday, saying they would support athletes who choose to participate in the coming games under the Olympic flag. The International Olympic Committee banned Russia last week from participating in the Games in Pyeongchang, South Korea, because of a state-sponsored doping program and efforts to cover it up. Some individual Russian athletes, proven to be clean, will be able to compete by invitation. Speaking after the Russian Olympic Assembly, the honorary president of Russia’s Olympic Committee dismissed the idea floated by some politicians of a ban on taking part in the Games in response to the IOC’s unprecedentedly hard-line decision. “A boycott of the Olympic Games is a dead-end, it’s a path to nowhere,” said the committee’s honorary president, Vitaly Smirnov. “Participation in the 2018 Games is a possibility for us to resurrect our status, our position and our good name,” he said. Russia was shocked by the IOC decision, with some commentators saying the ban had been a political decision designed by Russophobic officials in the U.S. and Europe. In its decision last week to suspend the Russian Olympic Team, the IOC said that Russian acquiescence to its terms is a condition of its potential future reinstatement. Still unclear are specifics about which Russian athletes may be cleared to compete in Pyeongchang. The IOC said it would name a panel to review cases of individual Russian athletes who have met stringent criteria, including subjection to extra drug testing, who may then be allowed to compete neutrally. Dmitry Peskov, a spokesman for Russian President Vladimir Putin, said Putin endorsed the Russian Olympic Committee’s decision. Left to right, the Texans’ J.J. Watt, the Giants’ Odell Beckham Jr. and the Packers’ Aaron Rodgers have all missed significant time due to injury this season. FOOTBALL ly . The NFL’s Injury Catastrophe co Fo m rp m e er rs ci on al a us l, e on Carson Wentz is the latest to go down—in a year in which several stars have been lost for the season It’s not just well-established stars, either. Injuries have also ravaged some of the game’s youngest and brightest stars. Houston’s Deshaun Watson looked like one of the best rookie quarterbacks in ages until he went down with an ACL tear. Fellow rookie star and Vikings running back Dalvin Cook is done for the year too. Now the injury to Wentz, who was reviving the Eagles franchise in his second NFL season, has upended the playoff race. The team with the best record in the NFC may no longer be the best team in the NFC. These players aren’t just good— they’re also some of the NFL’s most popular stars. According to a March study by The Q Scores company, Rodgers had the highest likability rating among NFL players. Watt was the fifth. The upshot is that the team that wins this year’s Super Bowl may not be the one with the best players. It could be the only one with some semblance of healthy players left. Yet for all the high-caliber casualties, there is no clear evidence that indicates injuries, on the whole, have spiraled out of control this season. A total of 420 players have been placed on injured reserve through Week 14 of this season. That’s actually fewer than over the same period during the previous two years, BY ANDREW BEATON n- DAVID J. PHILLIP/ASSOCIATED PRESS PHILADELPHIA Eagles quarterback Carson Wentz joined one of the NFL’s most elite groups on Sunday. An ACL tear that ended his breakout season added him to a Pro Bowl-worthy squad with injuries that have sidelined them for the duration of 2017. Injuries in the NFL aren’t necessarily up this year—it just seems that way because so many highprofile stars have gone down. And that has made the story of this NFL season more about the players on the sidelines than the ones on the field. The roster of injured players includes a collection who have claims to be the best at their positions. There’s Packers quarterback Aaron Rodgers, out since Week 6 with a broken collarbone; Cardinals running back David Johnson, out since Week 1 with a wrist injury; and Giants receiver Odell Beckham Jr., out since Week 5 with a fractured ankle. And that’s only the beginning. Colts quarterback Andrew Luck has missed the entire season. J.J. Watt, the Texans lineman who is perhaps the best defensive player in the world, is done too. Two key cogs from Seattle’s famous Legion of Boom—cornerback Richard Sherman and safety Kam Chancellor—are in the same bucket. Weather C l ry Calgary 10s 20s Por P tl d Portland Helena g Eugene 20s 0s 30s Billings 10s 10s 0s Ottawa Bismarckk 30s 20s Montreal A g t Augusta T Toronto p s / . Paul P Mpls./St. i Boise 50s <0 -0s ip Winnipeg ttl Seattle 40s no d t Edmonton 30s 30s Anchorage A h g 60s Honolulu l l 40s 60s U.S. Forecasts 20 t Boston rtford Hartford ew Y New Yorkk 40s 23 Showers Flurries City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. Tomorrow Hi Lo W 41 23 sf 73 55 pc 38 22 sf 75 47 s 30 16 sf 28 7 s 48 32 pc 64 34 s 40 28 pc 40 24 c 64 46 s 45 15 sn 48 35 pc 37 23 sf 45 28 pc International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 43 66 68 92 34 38 45 89 80 42 41 Today Lo W 36 r 53 s 42 s 77 pc 18 pc 35 c 36 r 62 pc 64 s 35 r 29 r Tomorrow Hi Lo W 42 34 c 66 49 pc 67 42 s 91 75 pc 33 20 c 40 33 c 41 35 sh 92 62 s 80 68 pc 42 36 sh 38 29 c City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Today Hi Lo W 40 37 sh 41 39 sh 75 52 pc 69 65 pc 60 54 s 84 73 c 64 50 pc 79 57 pc 48 38 r 50 35 pc 88 76 pc 95 69 pc 72 45 pc 44 31 pc 38 26 c 82 68 pc 49 40 r 81 70 pc 73 45 s 57 44 sh 86 74 pc 26 9 s 50 43 pc 85 77 t 85 71 s 67 63 r 48 36 s 21 6 c 44 34 pc 37 29 pc 39 36 sh Tomorrow Hi Lo W 44 34 sh 47 39 sn 75 56 s 70 63 c 60 52 pc 84 74 t 59 47 pc 85 55 s 43 35 c 53 45 pc 88 73 pc 77 54 pc 74 44 pc 44 31 sh 33 31 sn 84 70 pc 46 36 sh 85 70 s 79 44 pc 58 51 r 87 75 pc 31 18 pc 50 45 c 88 76 pc 96 71 t 69 63 c 49 38 s 23 15 c 45 36 pc 40 33 c 44 37 sn 4 5 8 18 9 25 30 35 36 31 38 42 44 49 50 54 26 27 28 58 59 39 46 51 55 60 64 13 43 45 48 53 12 32 37 41 47 11 22 24 34 10 19 21 40 63 7 16 29 33 6 15 60s Ice Today Hi Lo W 49 26 pc 62 41 s 32 27 pc 75 46 s 29 24 sn 30 14 pc 47 34 pc 61 33 s 55 28 pc 39 24 c 62 45 s 55 22 s 47 34 pc 40 21 c 36 31 pc 3 17 52 56 61 65 57 62 66 67 68 69 70 71 72 73 COMPANY DIRECTORS | By Morton J. Mendelson Across 1 Corp. high-ups 4 Steamer trunk feature 9 “Happy Birthday” writers, often 14 Sitcom planet 15 Computer character code 16 Block 17 Susan of “L.A. Law” 18 With 59-Down, means of riding the waves off of Brighton? 20 Kremlin coin 22 Harry of Blondie 23 High points 25 With 59-Down, piece of an ebony dining room set? 29 Incite to action 31 Fawn nurser 32 Driver’s lic. datum 33 Bi- quadrupled 36 Mystifier Geller 38 Rib 40 With 59-Down, computer component for a referee? 44 Home of a lion killed by Hercules 45 Chiang ___-shek 46 An arm and a leg, perhaps 47 Before, to Byron 48 Mauna ___ 51 Surrender 53 With 59-Down, Scarlett O’Hara’s closet? 56 Fruitcake 60 Between-shows airing 62 Budget-friendly, in brand names 63 With 59-Down, highway sign promoting the Sabres? 67 Supporter’s call 68 All-purpose conjunction 69 Kemper of “Unbreakable Kimmy Schmidt” 70 ___ anglais (English horn) 71 Partner of 24-Down 72 Parceled 73 Objective Solve this puzzle online and discuss it at WSJ.com/Puzzles. s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 41 27 c 32 18 c Atlanta 49 37 s 54 34 s Austin 65 38 pc 65 36 s Baltimore 34 24 pc 40 22 pc Boise 30 23 c 34 24 c Boston 32 22 pc 32 16 s Burlington 23 10 sn 19 5 c Charlotte 47 34 s 55 31 s Chicago 36 20 sn 31 20 c Cleveland 27 22 sn 27 12 sf Dallas 75 41 s 61 36 s Denver 55 26 pc 48 23 pc Detroit 25 12 sn 22 12 sf Honolulu 80 69 pc 80 68 s Houston 63 41 pc 66 42 s Indianapolis 42 23 pc 33 22 sf Kansas City 55 28 s 43 28 c Las Vegas 67 43 s 68 40 s Little Rock 63 35 s 52 30 s Los Angeles 81 53 s 78 52 s Miami 69 48 s 73 55 s Milwaukee 33 17 sn 28 18 c Minneapolis 31 16 sn 28 17 sf Nashville 53 35 s 45 26 pc New Orleans 62 45 s 67 45 pc New York City 32 27 pc 34 22 sf Oklahoma City 67 33 s 53 27 pc Miami 70s 2 30s k Milwaukee Detroit Buffalo 70s Ch Chicago Pitts b h Pittsburgh es Moines Des 60s Reno Salt Lake Lake C City City 30s Cheyenne Cl l d Cleve Cleveland y Ph hil d lphi Philadelphia 80s h Omaha 30s Sacramento d p Indianapolis Kansas 50s 90s hington hi gton D.C. DC Washington Denver p i fi ld Springfield an Francisco i San k City Topeka Ch l t Ch Charleston 100+ h d Richmond Las C l d Colorado Lou St.. Louis LLouisville Lou ill Vega Vegas p Springs l igh h Raleigh hit Wichita h Nashville 40s CCharlotte Ange Los A Angeles h l tt Santaa F Fe 70s 60s phi Memphis 80s C b Columbia Alb q q Albuquerque Ph Phoenix Oklahoma City Warm Rain San Diego A Atlanta Little Rock Tucson i h Birmingham ll Dallas Jack Jackson Ft. Worth D Cold 50s T-storms El P Paso 70s Jacksonville bil Mobile A ti Austin 10s Stationary Snow t Houston 20s l d Orlando ew Orleans New Tampa an Antonio San 70s 80s 40s 1 14 50s Ab n Albany 20s oux FFalls Pierre Sioux these injuries. The Colts were eliminated from the playoffs from the moment it was announced Luck would never take the field. The Texans’ chances were dashed by the absences of Watson and Watt. The Cardinals, without quarterback Carson Palmer and Johnson, their running back, are now extreme longshots. The Packers, once a favorite to win it all, are scrambling to stay afloat, hoping their two-time MVP quarterback, Rodgers, makes it back. The Vikings have been the rare team that has managed to not miss a step throughout all of this. They lost quarterback Sam Bradford and Cook, their running back, too. Still, they’re 10-3 because it turns out journeyman quarterback Case Keenum—who went undrafted in 2012—might actually be the unlikeliest MVP contender in league history. But that’s the exception, not the rule. Philadelphia fans hope that Nick Foles can step in for Wentz. Asked if the Eagles can overcome this coach Doug Pederson emphatically said “heck yeah.” Others are more skeptical: Despite pulling off one of the most impressive wins of the entire NFL season Sunday, against the Rams, Philadelphia’s Super Bowl odds went from 6-to-1 to 9-to-1, according to oddsmaker Bovada.lv. The WSJ Daily Crossword | Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. V Vancouver according to Stats LLC. The 3,483 games missed is the fewest since 2011. The long-term trend still indicates that injuries are generally up. Research from Football Outsiders found that injury rates spiked about 10% from 2007 through 2015. The 2017 injuries have created a complicated puzzle for fans trying to sort out the playoff picture. The two favorites to win the Super Bowl, according to oddsmakers, are the New England Patriots and Pittsburgh Steelers. And those teams are most notable for the fact that their best offensive players have stayed mostly healthy— Tom Brady and Rob Gronkowski for the Patriots, and Ben Roethlisberger, Le’Veon Bell and Antonio Brown for the Steelers. But while the Steelers explosive offense is intact, they also experienced arguably the scariest injury of the season when linebacker Ryan Shazier was taken off the field on Dec. 4 in a Monday night game. As Shazier, a Pro Bowl linebacker, laid barely moving, tension built and the NFL’s injury problem was never more apparent. Shazier has now been placed on injured reserve after undergoing spinal stabilization surgery. Without Shazier on defense, the Steelers barely escaped the Ravens 39-38 Sunday. Then there are the teams who have seen their hopes stymied by Down 1 Screwdriver component 2 Before going under? 3 Chat face-toface? 4 Off-site infiltrator 5 Hibachi byproduct 6 Large quantity 7 Had longings 8 Legendary voyager 9 “That sounds fun!” 10 Docket items 11 Creature on the Australian coat of arms 12 Sci-fi play of 1921 13 Lotion letters 19 River through Aragon 21 Hard-hitting investigative report 24 Partner of 71-Across 26 It shares a 45-mile border with British Columbia 27 Vitamin quantities 28 1975 Pulitzer winner for criticism 30 Anthony Anderson’s “Black-ish” role 33 Totally defeated 34 Suisse sweetie 35 Dealer in secondhand items? 37 Nettle 39 “...and much more of the same” 41 Join 42 Many a bunt, for short 43 Bearing 49 Green sci. 50 Went by roadster, say 52 Settled a score, in a way 54 Supports 55 Chilean poet Neruda 57 “Dubliners” writer 58 Status after a triple 59 See 18-, 25-, 40-, 53- and 63-Across 61 Tzatziki sauce ingredient 63 “Oh, nonsense!” 64 Arles article 65 U.S. vitamin overseer 66 Inventive account Previous Puzzle’s Solution G O G I R L A V E N U E V E T T E D E R R E D G C H R A L I A WA R M EWE F E Y E L M E N O TWOW U S E R W R I S T L I R A P E E A L S E C V A H E T I N A S T M H A H R EWA Y I N D S A H Y F A T S T A K I N G U P MA C AW I L M S E L T O I D I O N E WE UM P I R A E R I S T R E E E E M P S N O G I N S A U C E P C L O S U R P L E R E S E C S T S B E E R A R E S T For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Wednesday, December 13, 2017 | A17 OPINION 150-plus specific “behavioral” commitments for a period of seven years. A more “free-market” solution, says legendary trial lawyer and Justice Department ringer Don Kempf, is the one Mr. Delrahim is following in the AT&T case: Block a problematic merger or force the parties to make therapeutic divestitures, so managements can be free to compete in the marketplace without nitpicky DOJ oversight. Comcast-type decrees may be a kludge, but they help to dissipate the political heat. Which would be right, and even extort our wholehearted agreement, if antitrust were what it pretends to be—an objective, clinical analysis of competitive conditions without a predisposition to meddle for bureaucratic or political reasons. But here’s the thing: In the antitrust world we have made for ourselves, at least Comcast-style settlements let deals that are merely politically controversial go forward. At least companies get to try the new asset combinations that make for capitalist progress. As it is, expect the same head-of-a-pin, jargon-filled analysis in court that was leveled at Comcast’s deals. How many subscribers might other carriers lose (“departure rate”) if AT&T were to withhold or overcharge for Time Warner content? How many of these would then accrue as new subscribers to AT&T’s satellite, DSL or wireless platforms (“diversion rate”)? AT&T’s answers will be the same as Comcast’s: All such calculations grotesquely ignore the rate of change in the video marketplace. Even more so because the underlying concern in earlier cases was the power enjoyed by a local cable monopolist—which AT&T isn’t. Many commentators, for some reason, fail to recognize AT&T is not a cable company—it’s a technologically disadvantaged but sporty rival to cable’s generally superior local TV and broadband infrastructure. Never mind that nobody can figure out how it would really pay AT&T to fulfill Justice’s scare stories, holding back Time Warner’s flat-lining cable channels, including CNN, from competing TV suppliers. A related concern supposedly is Justice’s chagrin at how Comcast has honored its own 2011 consent decree. To which the right answer might be: So what? The video-market “innovation” that the Comcast decree was meant to foster has exploded in any case. Only Mr. Delrahim can say what was in his mind when, on arriving at the Justice Department, he chose to outbid the resident Obama holdovers who are said to have been leaning toward a Comcast-style solution. His stance makes it harder, though, to dispel the impression that AT&T is being treated differently from Comcast because Mr. Trump doesn’t like CNN. And don’t kid yourself: AT&T loves the “Trump meddled” meme as it now heads to court. Wiser presidents usually keep their mouths shut about antitrust, but Mr. Trump is playing a different game. Which is all the more reason for Mr. Delrahim to recall FDR’s own inspired choice of a law professor to run the antitrust division. Yale’s Thurman Arnold, with admirable skepticism, had previously written that trustbusting sprees tended to be “entirely futile but enormously picturesque and . . . paid big dividends in terms of personal prestige.” Arnold was farseeing. In our own day, the Microsoft case of the 1990s, not to mention the IBM case of the 1970s, to which the AT&T case is being likened, were both colossal wastes. They also launched a lot of careers. Mr. Delrahim, after his tumble through the AT&T briar patch, has been reminded of Arnold’s larger point. He is inevitably a political actor given the flimsy and inconstant precedents by which antitrusters apply their flexible doctrines from one political mood swing to the next. His performance would benefit from a bit more of Thurman Arnold, and a bit less of the antitrust pedant. Especially so because he may soon face a deluge of giant media deals guaranteed to generate more political heat than they do genuine antitrust concern. Partisanship and the Battle of the Sexes n- nipiac University Poll, said, “We can reasonably assume that the world is more conscious of workplace harassment and assault so therefore there’s less of it.” But he also noted that the results might reflect the fact that women older than 34 have simply been in the workplace longer than younger women. Another data source helps resolve this ambiguity. In 1994 and again in 2016, the U.S. Merit Systems Protection Board asked federal employees whether they had experienced at least one instance of harassment during the previous two years. Unlike Quinnipiac’s survey, which asked whether interviewees had “ever” been subject to harassment, the Board’s question produced snapshots of particular historical periods, separated by more than two decades. In 1994, 44% of women said they had been subject to harassment during the preceding two years. By 2016, this figure had declined by more than half, to 18%. Unwelcome sexual comments fell from 37% to 9%, suggestive looks and gestures from 29% to 9%, pressure for dates from 13% to 3%, and pressure for sexual favors from 7% to 1%. In the federal government, it appears, the environment for female employees has measurably improved, and this may well be the case for a wider range of workplaces. Heightened concern about sexual harassment is part of a broader debate about changing gender roles, in which parti- no The recent wave of sexual h a ra s s m e n t charges has sparked a long-overdue POLITICS national conversation. & IDEAS Men who had By William n a i v e l y A. Galston thought this problem was largely behind us (I include myself) have had instructive conversations with their wives and close female friends. This effort to find out what is going on has also produced a growing quantity of survey research. Some of the results are surprising. On Dec. 6, Quinnipiac released a poll finding that almost half of American women—47%—say they have been sexually assaulted, which the survey defined as being touched in an inappropriate, sexual manner without their consent. This headline number was shocking, and it was depressing to learn that the pattern was consistent across all age groups. Young people were no less likely to report being assaulted than people in their parents’ or even their grandparents’ generation. There was a glimmer of hope: Quinnipiac reported that among respondents age 18 to 34 who had been assaulted, only 20% said they had experienced assault in the workplace, compared with 40% or more of those in older generations. In an interview, Tim Malloy, the assistant director of the Quin- sanship matters even more than gender. A recent Pew Research Center survey found that 51% of Democratic women report experiencing genderbased discrimination, compared to 34% of Republican women. Perhaps Republican men are better-behaved than their Democratic counterparts or, more plausibly, Democratic women have a more capacious standard for what counts as discrimination. Republican and Democratic attitudes differ more than men’s and women’s. In general, Republican women are more ambivalent about changing roles surrounding work and family than are Democrats. By a margin of 53% to 24%, Democratic women say that these changes have made it easier for women to lead satisfying lives. By contrast, Republican women are divided: 37% think it is easier, 37% harder. Among Democratic women 51% believe these changes have made it easier for marriages to be successful; just 30% of Republican women agree. Republican women are more likely than their Democratic counterparts to think differences between men and women are a good thing and that childrearing should reflect this belief. For example, 48% of Republican women think there should be more emphasis on boys becoming leaders, compared with 29% for Democrats. When it comes to encouraging boys to talk more about their feelings or encouraging girls to be leaders, the gap runs in the other direction. GOP partisans—women as well as men—typically attribute gender differences to biology and nature, Democrats to nurture and social expectations. Democratic and Republican women agree that differences in physical abilities are biologically based. But in other respects—including parenting styles and ways of expressing feelings, majorities of Republican women opt for the biological explanation. Moreover, 73% of Republican women think it is a good thing that most people look up to “manly” or “masculine” men, compared with only 45% of Democratic women. Although there is broad agreement across party lines on the principle of equal rights for women, the political parties disagree about the extent of progress toward achieving it. And here again, partisanship dominates gender differences. Seventy-four percent of Democratic women believe that we need to go further; only 33% of Republican women agree. Sixty-four percent of Democratic men think we need to go further, compared with just 20% of Republican men. These partisan sentiments help explain Donald Trump’s remarkable victory and continuing but divisive appeal. Is There a Cure for the Curating Craze? By Stephen Miller D o you curate? An increasing number of Americans are busy doing just that. In the past month I’ve read about people who curate wine, beer, tea and coffee beans. Facebook, a professor of psychology says, is “curating news and information that will keep you watching.” In his book “Curationism: How Curating Took Over the Art World and Everything Else” (2014), David Balzer writes that “playlists, outfits, even hors d’oeuvres are now curated.” If you join Delta Air Lines’ Sky Club you will be given the opportunity to “curate your own unique culinary experience using grains, proteins, and vegetables”—that is, partake of a salad bar. The Oxford English Dictionary’s first citation of “curate” as a verb is from 1934. For 40 years it referred mainly to someone working at a museum—e.g., an exhibition West Paciﬁc Showdown Crashback By Michael Fabey (Scribner, 305 pages, $27) I n December 2013, just as China began testing its newly launched aircraft carrier, the Liaoning, in the hotly contested seas to the south of the country, the U.S. Navy decided to conduct a test of its own. The skipper of a Ticonderoga-class cruiser, one of the most powerful ships in America’s fleet, ordered his crew to shut down its radar and go into EmCon Delta, the stealthiest of its operational states, hoping to approach the Chinese carrier undetected for a sly bit of reconnoiter. To say that things didn’t go as expected would be an understatement. The American ship, the Cowpens, was itself being shadowed by a Chinese submarine, and with the carrier coming into view, the Liaoning’s crew contacted the cruiser by radio, angrily demanding that the American ship leave the area immediately. The American captain, Greg Gombert, insisted initially—and correctly— that the Cowpens was operating in international waters and was therefore well within its rights. But the Chinese escalated the incident by sending smaller vessels across the bow of the Cowpens at unusually close distances. Capt. Gombert was forced to undertake a rare emergency maneuver—a jarring reversal of his engines known as a “crashback”—and then to abandon his observation mission. “I am very sorry for what’s happened,” he told his Chinese counterpart, Capt. Zhang Zheng, who must have been delighted. “I didn’t mean to disturb your operations.” “For the first time,” notes journalist Michael Fabey, “the Chinese navy [had] openly confronted a U.S. Navy combatant ship on the high seas—a cruiser, no less—and forced it to back down.” In “Crashback: The Power Clash Between the U.S. and China in the Pacific,” the Cowpens incident serves as the backbone of a narrative tracing the recent history of China’s swift rise as a maritime force and of what the author sees as its increasingly overt ambition to replace the U.S. as the predominant naval power of the western Pacific. Unbeknownst to the broad public, Mr. Fabey writes, there are, on any given day, “tens of thousands of young American sailors and scores of navy ships out there in the Pacific, steaming hundreds of thousands of miles here and there, showing the flag at port calls, displaying ‘presence’ and ‘posture.’ ” Even less suspected by most Americans is Mr. Fabey’s arguably alarmist sense that the U.S. is already locked in a conflict over the high seas with China—a conflict he characterizes as a “warm war,” to contrast it with the decades-long competition with the former Soviet Union. co Fo m rp m e er rs ci on al a us l, e on With the AT&T and Time Warner case moving to court, some still can’t BUSINESS get over the WORLD idea that By Holman W. D o n a l d Jenkins, Jr. Trump is dictating the government’s opposition to the merger. That’s the story they like, and you can’t prove a negative. Besides, didn’t Mr. Trump say during the campaign the deal should be squashed? Isn’t the new head of the Justice Department’s antitrust division a former Trump White House lawyer? Well maybe, but as we have tiresomely pointed out, this case actually has precedents related to cable-TV-like services, including two big deals (one of them aborted) involving Obama trustbusters and Comcast. The real pivot of this latest episode is not the precedented if misguided nature of the Justice Department’s objections to the deal. It’s a particularly gratuitous insertion of Mr. Trump’s new antitrust chief, a former Pepperdine law professor. Enter Makan Delrahim. He introduced himself in his new job by espousing the academic view that consent decrees, like the one that finally allowed the 2011 Comcast-NBCUniversal merger to go through, are a bad idea. They put Justice in the role of a continuing regulator, in Comcast’s case overseeing BOOKSHELF | By Howard W. French ly . How Justice Went Wrong on AT&T being curated. In the 1980s “curate” began to have a broader meaning, and by 2011 the OED said it meant “to select the performers or performances to be included in (a festival, album, programme, etc.)” and “to select, organize, and present (content), as on a website.” This definition is out of date. To curate now mainly means to select something— probably food or drink, but it could also be clothes, vacations, friends, whatever. For 700 years “curate” was not a verb. It was a noun that signified (the OED says) a person “entrusted with the cure of souls; a spiritual pastor.” It comes from the Latin word cura, meaning care, concern and responsibility. A Spanish tapas restaurant in Asheville, N.C., is called Cúrate, which in Spanish means “get well.” The noun “curate” is connected to the noun “curator,” a 700-year-old word that the OED says signifies “one who has the care or charge of a person or thing.” A curator often referred to a guardian appointed for a minor or an insane person. “Curator” has followed the same lexical path of broadening meaning. One journalist recently wrote that George Saunders, the author of “Lincoln in At the salad bar, you can ‘curate’ a ‘unique culinary experience.’ the Bardo,” had come “to see his role as a novelist expanding to include the role of ‘curator.’ ” He means, I think, that a novelist selects material from a variety of sources. Let’s face it: We are all curators. We try to take care of the people we love and make wise choices about a variety of things. We curate our profiles online, choosing to present our best face. One columnist ob- serves that “so much social interaction takes place between disembodied avatars and curated selves.” A website named ArtOfCurating.com has as its motto: “A well-curated life is a happy life.” A well-curated life? To me this sounds comically pompous. Yet the notion of curating has a certain appeal. Who doesn’t want to be known as a person with discriminating taste? Or is “curating” a linguistic fad, like “groovy”? A few years ago Katherine Connor Martin, head of U.S. dictionaries for Oxford University Press, told the author of “Curationism” that “it’s entirely possible that in, say, 2018 someone will look at [the use of curate as a verb] and say, ‘Ugh, that’s so dated, nobody says that anymore.’ ” Don’t bet on it. Mr. Miller’s latest book is “Walking New York: Reflections of American Writers from Walt Whitman to Teju Cole” (Fordham, 2014). Spurred by three decades of economic growth, Beijing is beefing up its navy in the South China Sea. Should the U.S. be more concerned? This accessibly written book, built around stories like the Cowpens showdown, and drawing upon both the access and expertise the author gained as naval editor of Aviation Week, provides much useful information about the relative capabilities of the Chinese and American navies, as well as their rather different trajectories. Mr. Fabey describes China’s massive shipbuilding efforts, the personalities of some of its leading naval officers and its crash efforts to improve the quality of its sailors, most of whom, only recently, were high-school graduates at best. The American struggles that Mr. Fabey highlights, meanwhile, are those of a long-reigning incumbent superpower: how to sustain public and political support for a hugely expensive force in need of more ships and substantial modernization. He walks readers through the introduction of new types of American vessels and examines the Navy’s lack of long-range, ship-borne missiles. He also ponders whiz-bang technologies like laser weapons that, he optimistically suggests, could make defending the U.S. fleet from China both technically and economically feasible in the near future. In one key area Mr. Fabey’s book goes wrong. “To win this warm war requires only that the United States force China to peacefully operate within the very system that made China’s economic rise possible in the first place,” he writes early on. “In other words, America must require China to respect and maintain the status quo.” There is no quibble here over the importance of international rules, respect for which provides the best prospect of avoiding hot conflict in the future. But Mr. Fabey’s definition of victory is unrealistic. Throughout the book he expresses frustration that the U.S. doesn’t simply stand up more robustly to China at sea. He repeatedly berates excessive accommodation by the Obama administration, including its apparent unwillingness to confront Beijing around the artificial islands it has built in the South China Sea. “Crashback” was completed soon after the victory of Donald Trump, and in its closing pages the author expresses the hope that the new administration will be more assertive. So far, this has not happened; Mr. Trump, as any president, has had to weigh a broad range of issues with Beijing—starting with the threat posed by North Korea—before deciding how forceful to be with China at sea. China’s flouting of international law around maritime territorial claims is a serious matter. But what has changed the longstanding status quo in the western Pacific, most of all, is China’s three decades of high economic growth, which enabled Beijing to build an increasingly world-class navy. James Stavridis, the retired four-star U.S. Navy admiral who spent over half his career in the Pacific Fleet, recently estimated that, in military terms, China is already at rough parity with the U.S. in East Asia. “Crashback” provides a telling picture of the operational challenges the U.S. Navy faces in the western Pacific. More ships and better weapons systems, however, are merely part of the complex puzzle that America must solve in its relations with this vital and fast-changing part of the world, and Mr. Fabey devotes too little attention to the others. These include prosaic things like fostering better seamanship and shoring up alliance relationships with Asian countries, to make sure that weak countries like the Philippines do more for themselves and that richer ones, like Japan and South Korea, do more together. Mr. French is the author, most recently, of “Everything Under the Heavens: How the Past Helps Shape China’s Push for Global Power.” 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. A18 | Wednesday, December 13, 2017 * * THE WALL STREET JOURNAL. OPINION REVIEW & OUTLOOK LETTERS TO THE EDITOR A Google vs. Amazon Antitrust Lesson Aluminum Market: Holding China to Account n- merican Democrats are following Bernie stances, patients may also have to forgo” wages Sanders in embracing single-payer while they await treatment. health care on the Canadian model. But Demand for diagnostic technology also outwhen they get sick, our neighstrips supply, creating shortBernie Sanders’s model ages in the form of lines: “This bors to the north increasingly find that the only way to get Canadians could expect to system makes patients year, “free” medical care is to wait wait 4.1 weeks for a computed wait and wait and . . . tomography (CT) scan, 10.8 for weeks or months. The Fraser Institute’s new weeks for a magnetic resoreport, “Waiting Your Turn: nance imaging (MRI) scan, and Wait Times for Health Care in Canada” in 2017, 3.9 weeks for an ultrasound.” CT scan waits have documents the problem. The Vancouver-based increased while the nationwide average for MRI think tank surveyed physicians in 12 specialties and ultrasound waits decreased this year. across 10 provinces and found “a median waitSome provinces perform better than others. ing time of 21.2 weeks between referral from “The shortest specialist-to-treatment waits are a general practitioner and receipt of treat- found in Ontario (8.6 weeks)”—still longer than ment.” This is worse than 2016’s wait of 20 reasonable—“while the longest are in Manitoba weeks, making it the longest in the history of (16.3 weeks),” says the report. Waits between Fraser’s annual survey and 128% longer than the general-practitioner referral to treatment in first survey in 1993. Ontario and Newfoundland & Labrador shortThe wait to see a specialist for a consultation ened this year but the nationwide wait went up is now 177% longer than in 1993, while the wait as access in the other eight provinces worsfrom consultation to treatment is 95% longer ened. In New Brunswick the median wait from than in 1993. At 10.9 weeks it is more than three general practitioner to treatment is an appallweeks longer than the 7.2-week wait considered ing 41.7 weeks. clinically reasonable. The shortest waits are in The lesson is that Canada hasn’t repealed the radiation and oncology. But long waits for or- basic law of economics that scarce resources thopaedic surgery, neurosurgery and ophthal- must be rationed by price or by time. Ottawa’s mology, among others, far exceed what’s recom- decision to mandate a single-payer system in mended and aren’t benign. 1984 has consigned ailing Canadians to queues. Author Bacchus Barua says the negative con- Some 1,041,000 patients are in line waiting for sequences can include “increased pain, suffer- treatment, a 6.9% increase in 2017. ing, and mental anguish” and sometimes Free treatment isn’t much good if it’s not “poorer medical outcomes—transforming po- available and nearly 63,500 Canadians proved tentially reversible illnesses or injuries into that when they went abroad for care in 2016, chronic, irreversible conditions, or even perma- according to a separate Fraser report. The Canent disabilities.” He adds that “in many in- nadian model is no cure for U.S. health care. Illinois Drives People Away no I Trade actions like these are an internationally recognized and World Trade Organization-sanctioned means for addressing unfairly traded imports. Until China agrees to play by the rules, we will continue to rely on strong and consistent enforcement of U.S. unfair trade laws. HEIDI BROCK President & CEO The Aluminum Association Arlington, Va. Critical of your casting “the Bush [administration’s] steel tariffs in a negative light,” Dale Fruman insists that those tariffs “saved not only the U.S. steelmaking industry, but innumerable steel fabricators” (Letters, Dec. 7). Mr. Fruman’s case for tariffs rests on the presumption that consumer choices that destroy existing industries are to be regretted and therefore to be obstructed. We should all be grateful that people such as Mr. Fruman didn’t have their way a century ago when Henry Ford’s inexpensive automobiles destroyed the American liverystable industry, or a century and a half ago when John D. Rockefeller’s inexpensive kerosene destroyed the American whaling industry. Were the likes of Mr. Fruman to have had their way back then, we Americans would still be riding in horse-drawn buggies and lighting our homes with whale oil. PROF. DONALD J. BOUDREAUX George Mason University Fairfax, Va. co Fo m rp m e er rs ci on al a us l, e on A Canada’s Health-Care Queues The Commerce Department should be commended—not condemned—for its recent actions enforcing U.S. unfair trade laws in the aluminum market. Your editorial “The Coming Aluminum War” (Dec. 4) reports that domestic aluminum producers satisfy only 8% of total demand for aluminum sheet. But China’s long-term practice of market-distorting policies is well known and well documented. For years, China has been producing billions of pounds of metal that the world doesn’t need, thanks to massive government subsidies. The Journal’s reporting (“Chinese State Money Linked To Massive Metal Cache,” May 12) has highlighted how Chinese overcapacity has led to huge distortions in the marketplace. These distortions have contributed to capacity cutbacks and closures up and down the aluminum value chain—from primary smelters to rolling mills. That is why the Aluminum Association has consistently called for a government-to-government agreement to address structural overcapacity in China. But until or unless that happens, these acute unfair trade practices must be addressed. The aluminum industry supports free and fair trade. And businesses around the world need to know that the rules governments agree to will be enforced. In that respect, the Commerce Department’s decision to self-initiate a trade case against Chinese imports of illegally dumped and subsidized aluminum common alloy sheet is entirely appropriate. ly . T he Justice Department’s antitrust lawsuit Perhaps. But greater competition in content to block AT&T’s merger with Time War- production and distribution is reducing leverner seemed dubious from the start and it age all around. Consider: Two years ago, Amanow looks worse amid Google’s zon stopped selling Apple TVs tit-for-tat with Amazon for Their content spat shows after complaining that they blocking Google devices from didn’t “interact well” with why AT&T’s merger Amazon’s online store. Prime Video. Apple and Amadeserves approval. Last week Google alerted zon reached a detente last YouTube users that the app week, as the two companies will go dark on Amazon Fire now have an incentive to coTV and Echo Show on January 1. Google is pull- operate against Google. ing YouTube in retaliation for Amazon’s refusal In any case, Google and Amazon customers to sell its streaming device Chromecast and caught in the middle of the fight have myriad other Google Home products such as its Nest streaming options. YouTube can still be smart thermostat. Amazon has also withheld its streamed the old-fashioned way on the web, as Prime Video app from Google devices, ostensi- can Prime Video. Consumers can also purchase bly to drive customers to Fire TV. a Roku, which has YouTube, Prime Video and Amazon, which knows its audience, re- other popular apps. sponded: “Google is setting a disappointing Enter AT&T, which wants to buy Time Warner precedent by selectively blocking customer ac- to better compete with the likes of Amazon, cess to an open website.” This is a jab at Google’s Google, Apple and Facebook that are fast exsupport for “net neutrality” and “open Internet” panding into new lines of business. The merger rules prohibiting companies from blocking con- would enable AT&T to better target ads at Time tent. But Amazon is engaged in the same conduct Warner viewers. as Google, so who’s blocking whom? Yet Justice says that AT&T, whose DirectTV Google and Amazon are both vertically inte- makes up a mere 20% of the national multichangrated companies that create software and nel video-programming market, could withhold hardware as well as produce and distribute con- Time Warner content from cable companies and tent. YouTube ranked as the top video streaming “emerging online competition” such as Google mobile app (in average monthly time spent and and Amazon. In other words, it could do what Amaverage monthly users) last year. Yet Amazon’s azon and Google are now doing. But Time Warner voice-activated Echo device has outsold would lose hundreds of millions of dollars in cable Google’s Home. subscriptions and ad revenue if it did so. In other words this is like Floyd Mayweather Google’s tiff with Amazon doesn’t require fighting Manny Pacquiao; there’s no clear favor- government intervention, and increasing comite. Google is betting that withholding YouTube petition from other players will hasten a resolufrom Fire TV and Echo will infuriate their exist- tion as it has in Amazon vs. Apple. This is all the ing and potential users. Amazon might then sell more reason for Justice to approve the AT&T Google products. merger with Time Warner. f Republicans succeed in limiting the state-and-local tax deduction, one hope is that this could finally inspire a come-toJesus moment in prodigal high-tax states. Democrats in Illinois ought to be especially chastened by new IRS data showing an acceleration of out-migration. The Prairie State lost a record $4.75 billion in adjusted gross income to other states in the 2015 tax year, according to recently IRS data released. That’s up from $3.4 billion in the prior year. Many of the migrants were retirees who often flock to balmier climes. But millennials accounted for more than a third of the net outflow in tax returns. While Florida with zero income tax was the top destination for Illinois expatriates, the Illinois Policy Institute notes that Illinois lost income and people on net to all of its neighbors—Wisconsin (6,000 people based on claimed exemptions), Indiana (8,200), Iowa (1,900), Missouri (2,000) and Kentucky (1,100). What’s the matter with Illinois? Too much for us to distill in one editorial, but suffice to say that exorbitant property and business taxes have retarded economic growth. Illinois’s corporate tax rate is 9.5%, and passthrough business owners pay 6.45%. Though Illinois’s flat 4.95% income tax rate is relatively low compared to its neighbors, Democrats have found other ways to clobber their citizens. Property taxes in Cook County and Chicago’s “collar” counties are the highest in the country outside of California and the Northeast. The average homeowner who moves from Lake County, Illinois, across the border to Kenosha County, Wisconsin would receive an annual $3,200 annual property tax cut. Taxes may increase as Democrats scrounge for cash to pay for pensions. Fitch Ratings reported this week that Illinois’s unfunded pension liabilities equalled 22.8% of residents’ personal income last year, compared to a median of 3.1% across all states and 1% in Florida. This helps explain why Illinois’s economy has been stagnant, growing a meager 0.9% on an inflation-adjusted annual basis since 2012—the slowest in the Great Lakes and half as fast as the U.S. overall. This year nearly 100,000 individuals have left the Illinois labor force. The University of Illinois Flash Economic Index, which measures corporate earnings and investment as well as personal income, hit a fiveyear low in October. (See nearby for the recent labor force trend in Illinois.) Illinois taxpayers have seen the warnings on the wall, which became even more stark after the Democratic legislature this summer overrode GOP Gov. Bruce Rauner’s tax hike veto. Democrats in Springfield and Chicago think they can defeat Mr. Rauner next year and raise taxes again, but they may succeed mainly in driving more people out of state. The ASA BDS Vote Was as Open as Could Be Jesse M. Fried and Eugene Kontorovich’s op-ed “Anti-Israel Activists Subvert a Scholarly Group” (Dec. 4) offers some lurid fantasies about the process by which the American Studies Association resolved to boycott Israeli academic institutions. They claim that “a small cadre” conspired to deceive the association and push through a boycott resolution in what they melodramatically describe elsewhere as “an illegal, hostile takeover.” The charge of a “takeover” is ludicrous, labeling democratic deliberation and advocacy suspect and sanctionable activities. Longstanding members of the ASA like myself find it most peculiar to be accused of “infiltrating” the organization. Several years of very public and open grassroots organizing preceded the resolution’s passing, including numerous advertised panels on the topic. Scholarly inquiry informed the deliberations that took place before the vote. A number of the plaintiffs in the present suit attended and spoke at the open meeting where the resolution was debated. Their gripe appears to be that they lost in open debate. In the end, it was the association’s membership that voted to boycott by a two-thirds majority in an exceptionally public process. The lawsuit Expectations of What the Fed Can Do Exceed Reality Martin Feldstein makes it clear that he believes that the Federal Reserve’s extremely easy monetary policy for the past decade has contributed to asset overvaluation and therefore to the risks of financial instability, but he offers no clues as to how the new Fed regime will carry out its new “financial stability” mandate (“New Priorities for a New Fed Regime,” op-ed, Nov. 30). It’s curious that he blames the Fed in large part for the S&P 500’s high P/E ratios, then goes on to describe the hit our GDP would likely take if P/E ratios declined to historic levels. Given the low GDP growth trend we’ve had for several years, would growth have been even lower if equity valuations had remained closer to historic P/E ratio levels? If we agree that the Fed should try to temper market manias, we should be realistic about how successful its efforts will be. Alan Greenspan started saying the stock market was too high in 1995, and the market continued its sometimes crazy march up until the bubble burst in 2000. Perhaps we expect too much of the Fed when it comes to the economy. Just looking at the Fed’s record on achieving both price stability and full employment at the same time suggests we shouldn’t be too optimistic that the Fed can do much, if anything new, to achieve the new financial stability objective Mr. Feldstein suggests. I would like to know what he recommends. STEPHEN WIERHAKE Punta Gorda, Fla. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. against individual members is an obvious effort at coercion and intimidation through the abuse of legal means. The boycott campaign, by contrast, is a civil-society movement that has no other means than those of argument and participatory organizing. Those means have proved remarkably successful, and to the dismay of those who still defend Israel’s documented violations of basic Palestinian rights, the movement continues to gather strength in the face of all their efforts to suppress it. DAVID LLOYD University of California, Riverside Riverside, Calif. No Freedom Without SelfRestraint, Common Morals Regarding Daniel Henninger’s “The Death of Self-Restraint” (Wonder Land, Dec. 7): As a baby boomer, I’ve lived through the sexual revolution, the “new morality,” situational ethics, “sex, drugs and rock ’n’ roll,” the international student revolution, the “naked public square” (thanks, Richard John Neuhaus) and the “nones.” All these remarkably came to life in the shadow of the Greatest Generation. Certainly the people of any era aren’t inherently more moral than those of another time. But those who are the progeny of the folks who knew the Great Depression and the sands of Iwo Jima own one great difference: Their parents believed in absolutes, that there was right and wrong and that humankind didn’t own the final say. Those who created the most eminent society in history sinned, might hide their sins, might lie or shift blame. But unlike today, their thoughts and actions didn’t operate in a cultural moral vacuum. RAYMOND J. BROWN Londonderry, N.H. Mr. Henninger assumes that the culture wars of the 1980s and ’90s created the forces that led to Harvey Weinstein and the others. This premise is mistaken. It seems far more likely that the Harvey Weinsteins of the world have been around since forever, and it is only the #MeToo movement and support for it that are now shining a focused light on some of the more famous perpetrators. ADAM J. SAFER New York Pepper ... And Salt THE WALL STREET JOURNAL “When you’re finished with the particle collider, please turn off the light.” 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. Wednesday, December 13, 2017 | A19 OPINION The Qatar Quarrel Benefits the U.S. There is concern at Foggy Bottom and the Pentagon that the spat might disrupt the military campaign to dislodge Islamic State from Iraq and Syria. Indeed, all the countries involved in this disagreement are part of the 73-member coalition to combat ISIS. There are further concerns that the Gulf rupture could detract from the battle against the Taliban in Afghanistan or in other theaters where the U.S. military is engaged. The sprawling Al Udeid Air Base in Qatar is the primary nerve center for American-led air operations across the Middle East. Yet when I visited the Arabian Gulf recently, senior U.S. military officials there confirmed that the dispute hasn’t led to a disruption in regional military operations. The campaign has continued apace, and the ejection of ISIS from its so-called caliphate is nigh. Qatar’s defenders might point out that earlier this year the other Arab states ejected Qatar from the biannual U.A.E.-based Iron Falcon military exercises, which traditionally involve the Gulf states and a handful of other allies. The U.S. withdrew in protest, but it now appears that this issue has been resolved. The Arab states have agreed to include Qatar in future exercises. Officials from the U.A.E. and Bahrain have also conveyed a remarkably similar message in recent weeks: They have no interest in breaking apart the Gulf military alliance. The current spat, they say, is political, and they want to keep those problems separate from the military coordination they view as crucial to fighting Sunni extremist groups and deterring Iran. This is a message that resonates with U.S. military officials, who quietly lament that the Gulf rift may be the “new normal,” but add that the current equilibrium is one they can live with. None of this helps solve the root cause of the Gulf crisis—Qatar’s policies. Doha continues to provide a headquarters for violent Sunni groups like Hamas and the Taliban. Financiers of al Qaeda in Syria continue to operate inside Qatar with impunity. The country stands accused of meddling in the politics of unstable and vulnerable countries like Libya and Somalia, in an effort to promote its Islamist agenda. All the while, Doha remains a top patron of the Muslim Brotherhood, the Islamist group that is widely disdained by governments across the Arab world. The Arab states also accuse Qatar of colluding with Iran. This is a charge that Doha has denied vehemently. Mr. Schanzer, a former terrorism finance analyst at the U.S. Treasury, is senior vice president at Foundation for Defense of Democracies. Do Black Students Need White Peers? importance of the role white students play in the education of black students. “There’s no doubt there are benefits for students who attend racially diverse schools,” he said, but “we take issue with the assumption that black and brown children can’t learn unless they attend school alongside white children.” A news report worries about the racial makeup of charter schools, despite their better performance. n- Mr. Jeffries’s criticism was almost mild in comparison to that of Amy Wilkins of the National Alliance of Public Charter Schools, who took personal umbrage at the implication that school-choice proponents like herself have made common cause with the racial segregationists of yesteryear. Ms. Wilkins hails from what could accurately be described as civilrights royalty. She is the daughter of Roger Wilkins, the black political activist, journalist and academic, who served in the Kennedy and Johnson administrations. And she is the niece of Roy Wilkins, who led the NAACP in the 1950s and ’60s, two of the most consequential decades in the effort to abolish Jim Crow oppression. Ms. Wilkins has spent her adult life as an outspoken advocate for no The Associated Press published a hit piece earlier this month that blamed charter schools for perpetrating racial segregation. No UPWARD MOBILITY shock there. The mainstream press By Jason L. has long been symRiley pathetic to left-wing critiques of school choice, and racial imbalance in the classroom is regularly trotted out by union leaders like Randi Weingarten of the American Federation of Teachers as a reason to ban charter schools, however high-performing. More interesting (and somewhat encouraging) was the backlash to the AP “analysis” from others on the political left. Shavar Jeffries of Democrats for Education Reform, an outfit that advocates school choice, faulted the reporters’ methodology, among other issues. The AP makes “apples-to-oranges comparisons that contrast the demographics of individual charter schools to those of entire cities,” he said. “This ignores the blatantly obvious fact that charter schools are concentrated in neighborhoods with high proportions of students of color to provide them an alternative to the low-performing traditional public schools they previously had no choice but to attend.” But Mr. Jeffries seemed even more taken aback by the premise of the AP story. To wit: the supposed black children, and after the AP story appeared she wrote a response in the education-news website The 74 that pulled no punches. The problem, wrote Ms. Wilkins, “isn’t one article, however off-base it may be. The problem is the mindset of revanchists who peddle stories like these—professional anti-reformers who go nuts when approaches other than those they sanction and control deliver results for the students . . . they insist cannot learn at high levels.” Black parents simply want better schools, and the strong demand for education choice among low-income families stems from the persistent failure of traditional public-school systems to provide a decent education for their children. “There is no comparison—none— between the enforced segregation of the pre-Brown v. Board era and the choices black families make when they enroll their children in better schools,” wrote Ms. Wilkins. “It’s ludicrous to suggest the two are in any way similar. In fact, it’s far closer to the spirit of Jim Crow to tell a black student that she has to go to her dismal neighborhood school because the better charter school up the street is not white enough to satisfy the defenders of the status quo.” It isn’t obvious from the media coverage of school choice, but education reform is less a left-right issue than it is an internal debate among Democrats, who are torn be- tween carrying water for organized labor and prioritizing the interest of low-income minorities. The primary obstacle to advancing school choice for liberals like Mr. Jeffries and Ms. Wilkins is not conservative Republicans. Rather, it’s liberal Democrats, who tend to control the levers of power in urban centers populated by the black poor. Even the AP report acknowledged that “on average, children in hypersegregated charters do at least marginally better on tests than those in comparably segregated traditional schools.” Charter schools are also less violent and produce higher rates of graduation and college completion. As the Shavar Jefferieses and Amy Wilkinses and others on the school reform left understand, parental choice scares defenders of the status quo not because it’s ineffective or somehow harmful but because it works. “To the people trying to fabricate a segregation story to deny black students educational opportunity, I have a simple message: Don’t you dare,” wrote Ms. Wilkins. “Don’t you dare try to take away choices black families have fought for. Don’t you dare tell black families that you know better than they do what kind of school their children should attend. Don’t you dare call yourself social justice warriors while undermining the work of black school leaders and educators who are building something better for their communities.” When It’s Illegal to Ask, ‘How Much Do You Make?’ By Gerald Skoning C alifornia has become the fourth state—after Delaware, Massachusetts and Oregon—to prohibit inquiries into a job applicant’s salary history. Puerto Rico, New York City and Philadelphia have similar laws on the books. The professed goal is to increase pay equity between men and women, and Eleanor Holmes Norton, the District of Columbia’s nonvoting delegate to the House, has introduced a bill that would take the idea nationwide. Banning discussion of salary history is wrongheaded, counterproductive and wasteful. The exchange of such information promotes transparency in the hiring process and helps manage candidates’ expectations. Most important, it saves recruiting time. If both an employer and prospective employee keep salary details hidden until the end of the interview process, an applicant’s salary requirements may turn out to be out of line with what the employer is prepared to offer—so the entire process was a waste of time. PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Gerard Baker Editor in Chief Matthew J. Murray Executive Editor Karen Miller Pensiero Managing Editor Jason Anders, Chief News Editor; Thorold Barker, Europe; Elena Cherney, Coverage Planning; Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; Alex Martin, Writing; Mike Miller, Features & Weekend; Christopher Moran, Video; Shazna Nessa, Visuals; Rajiv Pant, Technology; Ann Podd, News Production; Matthew Rose, Enterprise; Michael Siconolfi, Investigations; Nikki Waller, Live Journalism; Stephen Wisnefski, Professional News; Carla Zanoni, Audience & Analytics Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES By Jon Leibowitz T he rhetoric over net neutrality has reached a fever pitch, with each side predicting dire consequences if opponents get their way. There is a critical need for protections from anticompetitive practices online, but both sides are exaggerating. Just as the sky did not fall when the FCC imposed its current Title II version of net neutrality in 2015, it also won’t fall if the FCC reclassifies broadband as an information service later this week—that is, if it follows through with the repeal of so-called net neutrality that has so many up in arms. The FCC’s vote this week only restores power to the Federal Trade Commission, whose record is strong. That’s because the FCC plan would restore power to police the internet to the Federal Trade Commission. The FTC, my former agency, is an experienced cop on the beat in this area. It protected internet users from unfair, deceptive and anticompetitive practices for the two decades before the FCC’s 2015 rule, which removed its jurisdiction. Consider the core principles of net neutrality, which I have long supported: unfettered access of the entire (lawful) internet and transparency about broadband providers’ practices. The FTC worked on those issues for years. In 2000, it conditioned AOL’s acquisition of Time Warner on the combined company’s commitment to treat competing internet providers operating on its network fairly. Since then, the FTC has defended the rights of municipalities to provide broadband competition and helped drive the public debate about the importance of neutrality rules, even taking action in 2014 against AT&T Mobility for allegedly slowing down the bandwidth of mobile users with “unlimited” data plans. With its authority restored—and assuming the agency prevails in a challenge to its power pending in a federal appellate court, as is likely— the FTC can hold internet providers to their public promises to maintain an open internet. Every major broadband provider has committed not to block, throttle or unfairly discriminate against lawful content. The FCC’s plan would compel providers to give customers clear and detailed information about their practices—commitments both the FTC and state attorneys general will be able to enforce, since false public disclosures violate the law. Further, the FTC has used its enforcement authority to bring actions against other corporate practices that harm consumers. It has already done so against many of the biggest companies operating online, including edge providers (Google, Facebook, Apple, Amazon, Microsoft and Twitter), broadband providers (Comcast, AT&T) and distributors (Dish Network and DirecTV). The FTC and the Justice Department can also prohibit unfair competition by enforcing the Sherman Antitrust Act—a formidable hammer against anyone who would harmfully block, throttle or prioritize traffic. Perhaps most important, the plan to restore FTC jurisdiction is good for consumers because it puts the nation’s foremost privacy cop back on the beat after a two-year absence. The FTC brought more than 500 privacy and data-security cases against companies large and small. It used this authority against broadband providers selling sensitive personal data without permission or failing to protect customer data from hackers and cyber criminals. The Obama administration called for the FTC to be the sole federal privacy enforcement agency as part of its much-vaunted 2012 Privacy Bill of Rights. Lawmakers on both sides of the aisle are now expressing interest in pursuing net-neutrality legislation. If they can get beyond partisanship and focus on practical solutions, Congress could cement a meaningful and permanent resolution to an issue that should have been resolved a long time ago. In the meantime though, the sky isn’t falling. Consumers will remain protected, and the internet will continue to thrive. co Fo m rp m e er rs ci on al a us l, e on It’s not exactly a battle between moderates and radicals, but it could have a moderating effect. DAVID KLEIN I t is no secret that Secretary of State Rex Tillerson has been at odds with President Trump on a range of issues. One of them is the U.S. response to the spat that erupted in early June between Qatar and four other Arab states. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt all accuse Qatar of funding extremists and fomenting instability in the Middle East. Mr. Tillerson has stated repeatedly that he views this fracas—in which Qatar has found itself increasingly isolated, politically and economically—as counterproductive to U.S. interests. The White House, by contrast, seems to be tacitly encouraging the Saudis and their allies to keep up the pressure. But recent reports suggest that Doha has signed an agreement with IRNA, Iran’s state news agency, to team up with Qatar’s Al Jazeera. This will not go over well with Qatar’s Arab neighbors, who are increasingly alarmed over Iran’s regional aggression. Qatar’s Arab adversaries are not angels. They all suffer from democracy deficits. Some of them, notably Saudi Arabia, have their own troubling history of spreading extremism. But that does not negate their valid criticisms of Qatar’s behavior. Nor does it render the Gulf feud illegitimate. Over the years, foreign-policy analysts of all political stripes have developed a consensus: The U.S. alone cannot win the war against extremist ideologies in the Middle East. Rather, there must be a battle within Islam that ultimately renders those ideologies counterproductive, or even exposes them as corrupt. A battle along those lines is taking place in the Gulf right now. This is not exactly a battle between moderates and radicals. The politics of the Gulf do not afford a binary equation. But this is undeniably a battle about the role of political and radical interpretations of Islam and their place in the Middle East. Washington should let the Gulf states fight this one out. This dispute does not undermine America’s core interests in the Middle East. If anything, to the extent that the players can finally agree on standards and norms, it might advance them. ly . By Jonathan Schanzer Everybody Calm Down About Net Neutrality William Lewis Chief Executive Officer and Publisher DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Christina Van Tassell, Chief Financial Officer; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head When it comes to matching employees with employers, more information is always better. The more employers know about potential employees, and the more job The question saves time if an applicant’s salary needs are out of line with what the employer can offer. seekers know about potential employers, the more likely there will be a successful match. Previous pay indicates employees’ value to their past employers. Often, pay is more telling than education or experience. For the same reason that potential employees should be able to ask the pay of positions they apply for, employers should also be able to ask potential hires about their previous pay. The issue of pay equity, meanwhile, is already addressed by multiple layers of federal, state and local equal-pay laws. And a comprehensive federal investigation suggests that claims of a “pay equity gap” by sex are grossly overstated. From 2009 through 2014, the Labor Department’s Office of Federal Contract Compliance Programs investigated the pay practices of 23,734 federal contractor facilities on a wall-to-wall basis. The agency’s goal was to find discrimination. The agency found such discrimination in only 0.5% of its audits. That is, 99.5% of all contractors paid women fairly. That shouldn’t come as a surprise to human-resources professionals and leaders of American industry. Equal pay for women has been the law of the land for more than half a century. The Labor Department’s investigative findings are compelling evidence of employers’ compliance with those laws. To the extent that sex discrimination in pay is still a problem, these new salary-history laws address it only at the fringes. A more sensible approach would be to step up enforcement of existing laws such as the federal Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, and Executive Order 11246 of 1965, which prohibits discrimination by federal contractors. Those federal laws, along with state and local equivalents, provide broad and effective remedies for unequal pay without trammeling the hiring process. Salary-history laws, moreover, would expose employers to liability even when they pay equally for equal work. They are a redundancy that will unnecessarily complicate the hiring process, foment wasteful litigation, and line the pockets of plaintiffs’ lawyers in the process. Mr. Skoning is a Chicago lawyer who specializes in labor and employment. Mr. Leibowitz was a Democratic commissioner at the FTC from 2004-13 and chairman beginning in 2009. As a partner at the law firm Davis Polk & Wardwell, he represents both technology companies and broadband providers. 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 | Wednesday, December 13, 2017 Mobile security made for the way people really work. no n- co Fo m rp m e er rs ci on al a us l, e on Defense-grade security for an open world. ly . Humans will be humans. Naturally they’ll want to work from the nearest unsecure coffee shop wiﬁ they can ﬁnd. But don’t worry. We’ve built mobile security from the chip up, to make things easier for you. Because why attempt to change your employees’ behavior, when you can simply change their mobile security? VPN conﬁguration required. Samsung Knox solutions utilizing VPN conﬁguration sold separately. samsung.com/samsungknox 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: WESTERN DIGITAL AND TOSHIBA END FEUD B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2664.11 À 0.15% S&P FIN À 1.02% * * * * S&P IT g 0.26% THE WALL STREET JOURNAL. DJ TRANS g 0.03% WSJ $ IDX À 0.08% Wednesday, December 13, 2017 | B1 LIBOR 3M 1.574 NIKKEI (Midday) 22806.48 g 0.26% GE Digs Deeper Into Use of Jets Board wants to know who was aware that backup aircraft flew on Jeff Immelt’s trips BY THOMAS GRYTA General Electric Co. recently conducted an internal review of the flying of a spare business jet to accompany Jeff Immelt when he was chief executive, as the company delves into an unusual practice that went on for years and surprised investors when they learned of it in October. The investigation was discussed at a GE board meeting last week, people familiar with the matter said. William “Mo” HEARD ON THE STREET By Dan Gallagher Cowan, GE’s vice president of litigation and legal policy, led an effort in recent weeks to find out who knew about the extra plane and when they knew it, one person said. It is unclear whether any findings would be made public. Mr. Immelt has said, including in a recent letter to GE’s board, that he wasn’t aware of the backup jet and that he ended the practice when he discovered it in 2014. GE has said that the two-plane practice was discontinued in 2014 and that it was limited to overseas trips with security risks and so-called business critical itineraries. An extra plane was used until at least this past spring, according to flight records and peo- ple familiar with the matter. Mr. Immelt, senior executives and at least one GE board member were aware of the practice, some of the people said. The company spent Ex-CEO Jeff Immelt said he ended the practice of using a backup jet when he learned of it. several million dollars a year on aircraft travel for Mr. Immelt, the people said. A spokesman for Mr. Immelt declined to comment beyond the letter the former CEO recently sent to the board. At an event hosted by media startup Axios last month, Mr. Immelt said “it was a practice that, in retrospect, I wish we hadn’t done.” Mr. Immelt has told The Wall Street Journal that the practice was set up by the company’s corporate air team and that it wasn’t something he had requested or approved. The industrial conglomerate has lost more than $125 billion in market value this year as its finances have deteriorated, forcing it recently to slash thousands of jobs and halve its annual dividend as part of a broader reorganization. Mr. Immelt was replaced this summer with John Flannery, one of his lieutenants, who grounded most of the company’s corporate jets. Mr. Cowan, a onetime aide to former Massachusetts Gov. Deval Patrick and an interim U.S. senator for Massachusetts in 2013, joined GE in April to oversee litigation, enforcement proceedings, investigations and compliance. He reports to the company’s general counsel, Alex Dimitrief. Mr. Cowan didn’t respond to a request for comment. After the Journal this year published two articles about the spare jet, Mr. Immelt sent a letter to Jack Brennan, GE’s lead independent director and former head of mutual-fund giant Vanguard Group, saying the operation was overseen by Please see GE page B2 Canada’s Combat-Aircraft Plans Put Boeing on Notice CHRISTOPHER GAINES/PLANET PIX/ZUMA PRESS co Fo m rp m e er rs ci on al a us l, e on DOGFIGHT: Ottawa indicated that a trade complaint by the U.S. aircraft maker could hurt its chances for a supply contract. B10 n- INSIDE no Walt Disney isn’t the only company with a lot riding on the new Star Wars movie this week. Electronic Arts could really use a boost from the Force. The videogame publisher launched “Star Wars Battlefront II” last month in a haze of controversy. The company pulled microtransactions from the game at the last minute following an outcry by early players, who complained that the design of the system was set up to favor those who paid a lot. Such transactions are an important part of the continuing revenue stream big videogames need to establish these days. EA hoped that shutting down the transactions would quell the controversy and give the game a healthy early launch. That didn’t happen. In the first two weeks after going on sale in mid-November, “Battlefront II” sold less than 900,000 copies through U.S. retail stores, according to Drew Crum of Stifel Nicolaus, who cited NPD’s tracking data. That doesn’t include digital downloads, which EA says now account for about 35% of a console game’s initial purchase. It still represents a 49% plunge from the initial retail sales of EA’s first Battlefront game, released two years ago, Mr. Crum says. That leaves EA to hope for a lift from the release of “Star Wars: The Last Jedi” in movie theaters on Friday. The company got a similar lift two years ago with its first Battlefront game following the release of “The Force Awakens.” Expectations are high, with many analysts still expecting “Battlefront II” to sell around 13 million units by the end of EA’s fiscal year in March. That may be beyond even the powers of the Jedi. Disaster Losses Close In On Record BY NICOLE FRIEDMAN Raging wildfires in Southern California could push the amount of insured losses from natural disasters this year to a record. Insurers and reinsurers are already on track for one of the largest ever annual losses for the industry from natural catastrophes. Hurricanes Harvey, Irma and Maria, along with two Mexican earthquakes, caused between $66 billion and $111 billion in damage, according to estimates from catastrophe-modeling firms. Wildfires in California in October caused $9.4 billion in insurance claims, the state insurance commissioner said last week. Insurers have yet to estimate the scope of damage from the more recent fires in Southern California. The Thomas Fire in Ventura County had burned 230,500 acres as of Monday morning and was 15% contained, according to estimates by the California Department of Forestry and Fire Protection, or Cal Fire. At that size, it is one of the five biggest wildfires in state history. ly . Electronic Arts Needs The Force To Awaken See more at WSJMarkets.com ARAMCO PUMPS UP BEFORE LISTING ENERGY, B3 SAIGON BEER ATTRACTS THAI TYCOON DEALS, B11 Bitcoin Lures Asia Investors Behind bitcoin’s stunning rise lies a new force in global financial markets: millions of individual Asian investors. Despite the attention foBy Steven Russolillo in Hong Kong and Eun-Young Jeong in Seoul cused on the launch of bitcoin futures in the U.S. last weekend, the center of gravity for trading the virtual currency, measured by volumes, has been in the East—starting in China, before shifting earlier this year to Japan and recently to South Korea as the latest hot spot. Unlike past financial frenzies—such as the dot-com bubble of the late 1990s, when U.S. retail investors only piled in at the later stages of the rally—individual investors have been first to the party, fueling bitcoin’s 1,600% rise this year. “Bitcoin is one of the few markets we’ve ever had in history where you’ve seen these astronomical gains around the world and the retail investors in Asia are the ones driving it,” said Chris Weston, chief mar- East Wind Share of bitcoin trading based on currency involved Asia* 100% U.S. dollar Euro Others 75 50 25 0 July Aug. Sept. Oct. Nov. Dec. *Includes Japanese yen, South Korean won and Vietnamese dong Sources: CryptoCompare THE WALL STREET JOURNAL. ket strategist at IG Group, one of the world’s largest online trading platforms. “It feels like this whole thing is being driven by the average Joe who isn’t nearly as financially literate as a professional fund manager.” Various forces have stoked Asia’s bitcoin fever. While individual wealth has been growing in recent years, particularly in China and South Korea, lucrative investment opportunities can be hard to find, with property markets expensive and stock markets fully valued. Anecdotal evidence suggests that Asians are more comfortable with the concept of virtual currencies such as Please see ASIA page B18 Passport fund founder shifts to cryptocurrencies.............. B18 $130B Projected insured losses from natural disasters this year “My sense is most records are going to be broken” for insured catastrophe losses this year, said Cathy Seifert, equity analyst at CFRA Research. Once the Southern California fires are factored in, total insured losses from natural disasters this year could reach a record $130 billion, Wells Fargo Securities LLC said Sunday. The global insurance and reinsurance industry’s worst year was 2011, when companies paid out $126 billion in inflation-adjusted dollars following earthquakes in Japan and New Zealand and floods in Thailand, according to Wells Fargo. One of the reasons the California fires have been so devastating for insurance companies this year is that much of the damage was done to homes worth millions of dollars each. The average value of burned homes in Southern California is likely to be more than double the value of the Northern California homes that burned in October, said Tom Jeffery, senior hazard scientist at analytics firm CoreLogic. Fire damage is covered by typical policies for homeowner and commercial-property insurance, meaning most of the economic losses from the California fires should be insured, Ms. Seifert said. In contrast, much of the hurricane damage this year wasn’t insured because standard homeowner insurance doesn’t cover flooding. Portions of Ventura and Santa Barbara counties were evacuated due to the Southern California fires, which will add to the insurance toll. HomePlease see FIRE page B18 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 | Wednesday, December 13, 2017 INDEX TO BUSINESSES B Bain Capital ................ B4 Beijing Sinnet Technology................B7 Bialow Real Estate...B12 Boeing ....................... B10 Bombardier................B10 BP................................A2 Brookfield Property Partners...........A11,B20 C-D CBL & Associates Properties...............A11 Comcast.....................B19 Connect Austria..........B2 CoStar Group ............ B12 Daily Mail & General Trust........................B12 DeNA...........................B4 E eCobalt Solutions.....B19 Electronic Arts............B1 Elliott Management . B12 Equity Commonwealth ...................................B12 Exxon Mobil...........A2,B3 Glencore...............B7,B19 Global X Lithium & Battery Tech...........B19 Goldman Sachs Group ...................................B19 Groupon.....................B12 GungHo Online Entertainment..........B4 I IG Group Holdings......B1 Ineos......................A2,B2 Interpublic Group........B9 J JetBlue Airways ......... B4 J.G. Wentworth ........ B10 Jones Lang LaSalle.....B4 JPMorgan Chase.......B19 L-M Lockheed Martin.......B10 LoopNet.....................B12 Lucasfilm .................... A1 Macy's.......................A11 Martin Agency............B9 N Netflix.........................B4 News Corp.................B19 Ningxia Western Cloud Data Technology.......B7 Nintendo......................B4 Royal Dutch Shell . A2,B3 S Saigon Beer Alcohol Beverage.................B11 Samsung Electronics B20 Scentre Group.............B2 Sears Holdings ......... A11 Simon Property Group ......................A11,B2,B12 SoftBank Group..........B4 Starbucks..................B12 T Taubman Centers......B12 Tesla..........................B19 Thai Beverage...........B11 T-Mobile US................B4 Toshiba.................B4,B20 Total............................A2 TÜV Austria Holding..B2 21st Century Fox......B19 U Unibail-Rodamco ........................A1,B2,B20 UniCredit...................B20 V Verizon Communications ...................................B19 ViaSat..........................B4 W G R Wal-Mart Stores.........B9 Walt Disney ... B1,B9,B19 Washington Prime Group ...................... A11 Western Digital...B4,B20 Westfield........A1,B2,B20 Westinghouse Electric .....................................B4 General Electric .......... B1 GGP....................A11,B20 Ritholtz Wealth Management...........B18 Xceligent...................B12 F Facebook......................B3 First Cobalt...............B19 P Passport Capital....... B18 PG&E ......................... B18 Phillips 66...................B7 PricewaterhouseCoopers ...................................B18 X INDEX TO PEOPLE A G R Alexander, Joe............B9 Glasenberg, Ivan.........B7 Rosenthal, Steven......B3 B H S Bialow, Corey............B12 Bornstein, Jeff............B2 Brennan, Jack ............. B1 Brown, Joshua..........B18 Burbank, John...........B18 Buterin, Vitalik.........B18 Hamm, Kathleen.......B18 Harris, Steven...........B18 C Jakob, Olivier..............A2 Jeanson, Cedric.........B18 Jeffery, Tom................B1 Seifert, Cathy ............. B1 Sen, Amrita ................ A1 Shaub, Michael.........B18 Simmons, Bill..............B9 Singer, Paul...............B12 Spalding, Seth .......... B18 Stahl, Murray............B18 Stockdale, Stewart...B10 D Dankberg, Mark..........B4 Davis, Eric...................B9 DesParte, Duane.......B18 Doty, James..............B18 E J K Kleinbard, Edward ...... B3 Kushner, Julie.............B7 L Litt, Jonathan...........B12 Lowy, Frank.......A11,B20 M Evans, Heath...............B9 McNabb, Donovan.......B9 Milstein, Larry..........B19 F N-P Faulk, Marshall...........B9 Ferguson, Lewis........B18 Franzel, Jeanette......B18 Novogratz, Michael...B18 Peters, Susan..............B2 Powell, Jerome.........B20 T W Wehner, Dave ............. B3 Weinberger, Eric.........B9 Weston, Chris.............B1 Wiegand, Eric............B19 Williams, Geisha ...... B18 Williams, Matt ........... B9 Z Zell, Sam...................B12 A trip taken by then-GE CEO Jeff Immelt in September 2016 used two private planes: one to ﬂy Mr. Immelt and a spare that followed behind. A look at the route: Singapore Kuala Lumpur Bangkok THAILAND Tokyo JAPAN Vladivostok Helsinki RUSSIA FINLAND P a c i ﬁ c O ce a n Anchorage Atlan A ce a n Atla n ttic O cea Boston Bost B Bo osston onn Plane A: 3:05 p.m. Note: Note No te: All All times times Eastern Eastern Source: Sour rce: FAA and ﬂight-tracking ﬂightt-tracki ﬂigh tracking ng website website websi te records records recor ds GE Continued from the prior page the senior human-resources manager. GE recently said the head of its human-resources department, Susan Peters, would retire at the end of the year. Her departure isn’t related to the spare jet or related review, a GE spokeswoman said, adding that Ms. Peters is retiring at the age of 65 “after 38 years of dedicated service.” Her exit is the latest in a series of executive changes since Mr. Immelt was replaced. Ms. Peters was part of an executive committee that in 2014 reviewed an internal complaint about the spare jet, according to people familiar with the matter. Other executives involved, they said, included Jeff Bornstein, who was replaced as finance chief on Nov. 1, and former general counsel Brackett Denniston III, who retired from the company in 2015. The committee reviewed the complaint and recommended changes, including using locally chartered planes as backups instead of flying two GE-owned planes, one person said. The committee reported its findings to independent director Douglas “Sandy” Warner, at the time the head of the board’s audit committee, this person said. Mr. Warner, a former chair- sales were 3%. Retailers also didn’t expand as aggressively in Europe as they did in the U.S., a move that has left them with less of a glut of retail space there. And U.S. brands have tended to depend more on selling ‘For our main assets, it would make sense to use the Westfield brand.’ wares in vast, multifloor department stores. Those stores, often the anchor retailer for many U.S. malls, have been especially hard-hit by the shift to e-commerce. Just like Westfield’s properties, Unibail’s malls are huge. The Forum des Halles, in central Paris, packs in 123 stores, 23 restaurants and a cinema. The Mall of Scandinavia in Stockholm houses a cin- ema and 224 stores and restaurants. Unibail started in 1968 as a property-leasing company in France, moving into property ownership in the 1990s. Ten years ago, it acquired Dutch rival Rodamco, in a $15 billion all-share deal that made it the giant it is today. Unibail operates across 11 European countries and focuses on buying large shopping centers in major European cities. It also owns offices as well as 10 convention and exhibition centers in and around Paris. The company has a 95% occupancy rate at its malls. Revenue in the first half of 2017 was €670 million ($788.7 million), up 4.1% from a year earlier. In 2014, after Westfield’s Australian and New Zealand malls were spun off into the Scentre Group, a company listed on the Australian stock exchange, Mr. Cuvillier started exploring a possible takeover. The details of Tuesday’s deal came together over the past six weeks. The explosion at the Baumgraten an der March site, Austria’s largest gas import hub, led Italy to declare a state of emergency. Hub Blast Crimps Europe Natural Gas BY ZEKE TURNER An explosion Tuesday at Austria’s largest import hub for natural gas left one dead, a state of emergency in Italy and the highest gas prices in three years in the U.K. just as the cold winter months set in. Local police blamed the explosion at the Baumgarten an der March site on a technical defect at the gas artery some 30 miles from the capital Vienna. Despite a complete shutdown of the hub, which is critical to Italy’s supply, and a fire that scorched 2.5 acres of land, there was no immediate environmental impact detected, police spokesman Edmund Tragschitz said. But Italy’s industry ministry declared a state of emergency—standard procedure when part of the country’s supply is cut off. Almost onethird of the country’s supply flows through the hub, according to analysts and Gas Con- nect Austria GmbH, the company that runs the site. The explosion also compounded existing gas-supply concerns in the U.K., coming one day after a major supplier to the British market announced that it was shutting down an important section of Scottish pipeline. Ineos, a privately held chemical company, said Monday it was shutting down for repair a cracked section of its Forties Pipeline System, a spokesman for the company said. The pipeline helps deliver North Sea gas through Scotland into the U.K. market. U.K. natural-gas prices jumped by close to one-fifth following news of the explosion. The U.K.’s NBP gas price benchmark later pared gains but was still trading at its highest since 2014, up 9.2% on the day. Tuesday’s blast left 21 people injured—employees and contractors for the company that included one U.S. citizen, Plane B: 10:38 a.m. Sept. 25 in Newburgh, N.Y. no Plane B: 3:38 p.m. Return arrival: Plane A: 7:15 p.m. Sept. 24 in Boston n- Departure from Boston: Sept. 17, 2016 One of the world’s bestknown mall operators just agreed to be bought by one of its least known. Westfield Corp.—the Australian operator of glitzy shopping centers stretching from California to Florida to New York—said Tuesday that it agreed to a $15.7 billion takeover by Paris-based UnibailRodamco SE. Even in its home market of France, Unibail-Rodamco isn’t a well-known corporate name. But it is Europe’s largest listed landlord. And if it consummates a deal with Westfield, it also will be the world’s second-largest mall operator by market capitalization, behind Simon Property Group Inc. Westfield, run by Australian billionaire Frank Lowy and his sons, created an anomaly in U.S. mall culture, a name on shopping centers that is almost as recognizable as the shoes and designer clothes sold by the stores inside. That cachet is what attracted Unibail. It owned 71 shopping centers across Europe as of June 30. Almost every one of them has a different name, well known by locals but carrying little crossmarket recognition. “For our main assets, it would make sense to use the Westfield brand,” said Unibail Chief Executive Christophe Cuvillier. “There’s money to be saved by advertising only one brand.” The deal is a big bet on U.S. retailing, when online shopping is reshaping the U.S. retail scene. The pain has been less severe in Europe, partly reflecting a slower takeup of online shopping in some countries. Online transactions accounted for 14% of U.S. retail sales in 2016, while Europe’s online market share was just 8%, according to the Center for Retail Research. But penetration rates vary widely. U.K. online sales made up 17% of that country’s retail market last year, while Italy’s online Taylor, Ike....................B9 Taylor, Tim..................B7 Teichert, Armin...........B2 Tobin, Bruce..............B12 In Tandem M A L AY S I A BY SAABIRA CHAUDHURI AND NOEMIE BISSERBE co Fo m rp m e er rs ci on al a us l, e on Cantor, Jami................B9 Cowenhoven, Anna.....B7 Cuvillier, Christophe ............................. A11,B2 I Immelt, Jeff................B1 Unibail Deal to Create Behemoth said the company was investigating whether ongoing inspections at the hub were related to the explosion. —Georgi Kantchev and Eric Sylvers contributed to this article. Borrow, Earn, Spend & Invest at Lower Costs and Higher Returns1 ● Borrow against your account at 1.41% to 2.66% APR.2 ● Earn interest of 0.66% APR on your qualifying idle balances and extra income by lending your fully paid shares.3 ● Spend and borrow directly against your account with Interactive Brokers Debit Mastercard® anywhere Debit Mastercard is accepted around the world. ● Invest in stocks, options, futures, forex and bonds on over 100 global exchanges at lower cost.4 THE WALL WALL STREET STREET JOURNAL. JOURN JO URNAL. man of J.P. Morgan & Co. who spent 24 years on the GE board, didn’t respond to request for comment, nor did Ms. Peters or Mr. Bornstein. Mr. Denniston declined to comment. The internal complaint was addressed to the board, but the entire board wasn’t informed, the people said. Several directors, along with investors and employees, were surprised when the Journal first reported in October on the empty backup plane, the people said. Years before the 2014 internal complaint, the company was questioned about the spare plane. In September 2010, an anonymous Montana political blogger wrote that two GE jets flew into Butte, Mont., when Mr. Immelt came to an economic summit hosted by then-Sen. Max Baucus. The blogger reported that airport staff said the second jet was an extra, empty plane. Former GE spokesman Peter O’Toole responded, according to the blog post, that the board required the CEO to use corporate jets for security reasons and that the claim of “some sort of ‘chase plane’ scenario is wrong.” When asked by the Journal about the Montana incident this week, Mr. O’Toole, who left GE in 2010, said “our responses were based on the information available at the time.” —Joann S. Lublin contributed to this article. a spokesman for Gas Connect said. The single casualty was an employee working for TÜV Austria Holding AG, a quality and safety controlling company. Armin Teichert, a spokesman for Gas Connect, why did the turtle cross the ocean? To ttransfer T f your accountt visit: i it ibkr.com/ibcard One World, One Account Discover a world of investment opportunities with Ariel’s international and global strategies. We offer mutual funds and separate accounts spanning the market cap spectrum and covering the globe. arielinvestments.com/think-global Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800.292.7435. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a whollyowned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation. WSJ ©2017 Slow and steady wins the race. Margin borrowing is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. Interactive Brokers LLC is a member of NYSE, FINRA, SIPC.  Lower investment costs will increase your overall return on investment, but lower costs do not guarantee that your investment will be proﬁtable.  Annual Percentage Rate (APR) on USD margin loan balances as of 9/06/17. Interactive Brokers calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. For additional information on margin loan rates, see ibkr.com/interest.  Credit interest rate as of 9/06/2017. USD credit interest is paid on balances over USD 10,000 in accounts with Net Asset Value exceeding USD 100,000. For more information, see ibkr.com/interest.  According to Barron’s Broker Survey 2017: How They Stack Up, March 20, 2017. For complete information, see ibkr.com/info Margin loan rates and credit interest rates are subject to change without prior notice. BY USING THIS CARD YOU AGREE WITH THE TERMS AND CONDITIONS OF THE CARDHOLDER AGREEMENT AND FEE SCHEDULE, IF ANY. This card is issued by Metropolitan Commercial Bank (Member FDIC) pursuant to a license from Mastercard International. “Metropolitan Commercial Bank” and “Metropolitan” are registered trademarks of Metropolitan Commercial Bank © 2014. All interest and borrowing activity is through Interactive Brokers LLC. Please see your customer agreement with Interactive Brokers LLC for further details. Card program marketed and administered by Interactive Brokers LLC, the Program Manager of the Interactive Brokers Debit Mastercard. 09-IB17 1130CH1125 JOE KLAMAR/AGENCE FRANCE-PRESSE/GETTY IMAGES A 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. Alexander Babbage.....B4 Alibaba Group...........B18 Amazon.com .................... A1,B3,B4,B7 Apple....................B4,B18 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. Wednesday, December 13, 2017 | B3 THE WALL STREET JOURNAL. BUSINESS NEWS Saudi Aramco to Pump Up Its Spending Plan calls for outlays of over $40 billion a year in next decade, bucking industry trend The energy company, which is planning a public listing, will boost investments in offshore fields and in drilling and well services. through all of 2018 to reduce a long-built-up global oversupply of petroleum. Saudi Aramco’s announcement came on the same day that Brent crude, the international benchmark for oil prices, topped $65 a barrel for the first time since June 2015. Oil prices have risen by over onethird since their summer lows, thanks to OPEC’s production cuts, rising demand and supply disruptions in the U.K., the U.S., Iraq and Venezuela. Saudi Aramco’s plans to in- crease spending buck a general trend in the global oil industry. Big publicly listed oil companies like Royal Dutch Shell PLC and Exxon Mobil Corp. have either pulled back expenditures or maintained current levels as they weather the market downturn. The Aramco plan was disclosed at an industry event in Saudi Arabia’s Eastern Province, where most of its oil sector is based. About $134 billion will be spent on drilling and well services, and $78 bil- ly . DUBAI—Saudi Arabian Oil Co. Tuesday unveiled a plan to invest more than $40 billion a year in projects over the next decade, a significant expansion for the world’s largest energy company ahead of its expected public listing next year. The $414 billion proposal is up almost 25% from a 10-year spending plan outlined last year by Saudi Aramco, as the company is commonly known. The increased spending is being driven by its goal of maintaining production capacity at about 12 million barrels of oil a day, the most of any company in the world. Saudi Aramco’s spending plan coincides with the Saudi government’s efforts to prop up oil prices with coordinated supply cuts via the 14-nation cartel it leads, the Organization of the Petroleum Exporting Countries, and an alliance of 10 other producers led by Russia. The producer group last month reaffirmed its commitment to limiting oil output SAUDI ARAMCO/REUTERS BY SUMMER SAID lion will be invested to maintain oil output potential, according to a presentation by Nassir Al Yami, Saudi Aramco’s general manager for procurement. More than half of the $334 billion previously announced by Aramco will be invested in offshore fields. The spending also represents a boost to sectors like refining, as the Saudis try to process more of their own crude into fuel, a more lucrative enterprise than exporting pure petroleum. “Our numbers compared to the previous business plan have increased…we expanded into other sectors,” the company’s chief executive, Amin Nasser, told reporters Tuesday. “We are into so many sectors…before we used to talk about oil and gas but now we are in renewables and infrastructures.” Saudi Aramco is planning potentially the world’s largestever public offering, with a domestic and international listing next year. More recently Riyadh has considered scrapping the international listing and selling a private placement to a Chinese consortium including pension and sovereign-wealth funds and state oil companies, according to people familiar with the matter. Facebook Bends to Foreign Pressure on Taxable Income tentially offset any new taxable income. “Moving to a local selling structure will provide more transparency to governments and policy makers around the world,” Dave Wehner, Facebook’s chief financial officer, said in a blog post. There is a lot of money at issue for Facebook, which is making its shift more broadly than some other tech firms. In the third quarter, Facebook generated 57%, or $5.85 billion, of its revenue overseas. Moreover, the bulk of the company’s revenue comes from mature markets that have advertising offices of the type that will be included in the shift announced Tuesday. There is a caveat that could reduce the impact: The change won’t affect Facebook’s selfservice ads, bought directly on its website by millions of advertisers. A Facebook spokesman declined to break out what portion of its revenue would be redirected under the plan. Facebook’s announcement is the latest example of multinational companies, particularly U.S. tech giants, changing tax practices to cope with tighter rules and pressure from governments, especially in Europe. The United Kingdom in 2015 passed a tax on profits that the tax authority deems have been inappropriately shifted to lowtax regimes. More recently, France, Germany and other big European countries have proposed a tax on internet companies to make up for the income tax they would pay if they were to report profit in the countries where they do business. A spokeswoman for the French Finance Ministry, which proposed the new tax, declined to comment on Facebook’s plan. Facebook’s change also comes as U.S. lawmakers and the Trump administration work on a tax-code overhaul meant, in part, to encourage U.S. firms to repatriate their profits so they can be taxed in the U.S. Amazon.com Inc. in 2015 began collecting revenue from units in individual European countries, rather than through Luxembourg. Google made a similar change in 2016 in the U.K., and Facebook has started booking some revenue locally in the U.K., Australia and Brazil. In the U.K., where Facebook made the change partway through 2016, the company saw its tax payments rise 22% to $6.8 million. no REUTERS n- PARIS—Facebook Inc. plans to book more revenue in the countries where it sells ads, becoming the latest U.S. tech giant to bow to pressure from foreign governments to simplify its tax structure and potentially pay more income tax overseas. The social-networking company on Tuesday said it plans over the next year to start recording advertising sales made through local representatives in the countries where they are located, rather than funneling that money directly to Ireland, which has a lower corporate income-tax rate than many other countries. The move would significantly boost Facebook’s revenue recorded in the 27 countries where it plans to make the change, including Germany, Japan and Argentina. It hopes to complete the move by the first half of 2019. It isn’t clear, though, how much the change will boost Facebook’s tax bills. The company also will start booking costs locally, including for the use of intellectual property, a spokesman said. That could po- co Fo m rp m e er rs ci on al a us l, e on BY SAM SCHECHNER A Harrisburg, Pa., audience listened to a speech in October by President Trump about tax changes. 20% vs. 22%: Tensions Arise Over New Corporate Tax Rate BY THEO FRANCIS Two percentage points are generating a big tussle in the debate over the right corporate tax rate. As House and Senate lawmakers continue hashing out differences between their taxoverhaul bills, the prospect lingers that they could push the new corporate tax rate to 22%. Both chambers passed bills that would cut it to 20%, down from 35%, as part of a broader package of tax-law changes, and lawmakers are eager to keep it there. Still, President Donald Trump has raised the possibility of such a change, and pressure is growing in some quarters to find money for a variety of interests, from lower-income workers to small grocers. A 22% corporate rate instead of a 20% one is significant, amounting to about $200 billion in tax revenue over 10 years, based on a rule of thumb that puts each percentage point of corporate tax at about $100 billion over that period, experts say. For U.S.-based companies, either cut would be sharply lower than today’s 35% statutory corporate rate, and push the U.S. rate below that of most major developed countries. “In the end, Corporate America will write a lovely thank-you note to the Congress of the United States, regardless which of those tax rates ends up being imposed,” said University of Southern California law professor Edward Kleinbard. Moody’s Corp., the bond-rating giant, offered a glimpse of that contrast in a presentation to investors and analysts last week. The company’s effective tax rate under current law is about 30%, Chief Financial Officer Linda Huber said. Each percentage-point reduction in that figure would increase earnings by 7 cents to 8 cents a share. So cutting the firm’s effective tax rate to 20% would raise earnings by 70 to 80 cents a share, Ms. Huber said, or between $134 million and $153 million using the company’s Sept. 30 share count. She suggested the difference between that and a 22% rate would mean giving up between 14 cents and 16 cents of that benefit. In 2016, Moody’s reported earnings of $1.36 a share, or about $267 million. Lawmakers are seeking to give companies a reason to invest in the U.S. rather than overseas, and they worry that effort will fail if they adopt a rate that isn’t low enough—particularly because other countries are likely to cut rates in response. “That’s the whole idea, is to come in at below the average,” Sen. Rob Portman (R-Ohio) told reporters last week. “If we go ahead and take it up to the average or above, then we’re not giving our workers the competitive advantage we’re trying to provide here.” Companies might be more amenable to a slightly higher rate if that means lawmakers ditch other tax-overhaul provisions they don’t like. That could include a Senate proposal to maintain the corporate alternative minimum tax, or AMT, or provisions that postpone some tax cuts—the Senate bill puts off the corporate cut until 2019— and make others temporary. Delays encourage gaming the tax system, as companies consider putting off or accelerating spending to maximum effect, while temporary provisions complicate corporate-tax planning, said Steven Rosenthal, senior fellow at the Tax Policy Center, a nonpartisan think tank run by a former Obama administration official. —Richard Rubin contributed to this article. Evolved over billions of years... Protecting your enterprise in one hour. The immune system has evolved over billions of years. But it takes just one hour to install one in your enterprise. Using artiﬁcial intelligence, Darktrace can tell friend from foe, and catches threats that others miss. Even if they’ve never been seen before. From quiet insider threats and zero-day attacks, to hacks of connected devices or industrial networks, our software sees it and responds. Find out what’s lurking inside your systems. darktrace.com World-Leading Cyber AI 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 | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. * *** TECHNOLOGY WSJ.com/Tech Western Digital, Toshiba End Feud Net neutrality doesn’t apply to in-flight Wi-Fi. The FCC exempted businesses that offer Internet access to their customers as a perk. A Study in Net Neutrality BY RYAN KNUTSON If you have taken a flight recently on JetBlue Airways, you might have noticed something that looks a lot like a net-neutrality boogeyman: prioritization of Amazon.com Inc.’s videos over other services, such as Netflix or HBO, on the airline’s in-flight Wi-Fi network. It actually isn’t a violation of net neutrality, which requires all web traffic to be treated equally. But it helps explain why some fear lifting such rules will harm the internet, and why others aren’t worried at all. The Federal Communications Commission is voting to repeal the rules on Thursday. Net neutrality has never applied to in-flight Wi-Fi. The FCC specifically exempted businesses such as airlines, coffee shops and hotels because they simply offer internet access to their customers as a perk. JetBlue is among the first U.S. airlines to use a new satellite service that delivers real high-speed internet on airplanes. Speeds are similar to what one might get with a strong LTE connection on a smartphone in a city. Meanwhile, Amazon has a marketing partnership with the airline that helps make the internet free for all passengers, a spokeswoman for JetBlue Airways Corp. said. Amazon’s logo is featured prominently on the Wi-Fi signup page, and customers are encouraged to stream Amazon Video. But Amazon’s marketing deal with JetBlue doesn’t have anything to do with the quality of the video stream, both companies say. Amazon’s service doesn’t get preferential treatment over other internet traffic, they add. Instead, Amazon optimizes its videos on JetBlue flights so it doesn’t use up so much bandwidth. Typically, that means subtly reducing the picture quality so it is less dataintensive. Amazon also modified its video stream to better handle the time it takes for the sig- Amazon reduces its videos’ picture quality so it is less data-intensive. Other providers are welcome to make the same tweaks, and Netflix Inc., another supporter of net neutrality, said it recently made similar adjustments. This sort of optimization is similar to what T-Mobile US Inc. did with all video on its wireless network. Videos stream at a lower picture quality—which is difficult to notice on a small smartphone screen—but they don’t count against a customer’s data limit. Mark Dankberg, chief executive of ViaSat Inc., the satellite company that provides JetBlue’s internet, said that even though net neutrality doesn’t apply to the skies, there isn’t a market incentive to prioritize one video service over another. “Our strategy for in-flight Wi-Fi is to offer the best service, at the lowest cost, to as many passengers as possible,” Mr. Dankberg said. “So, we’re motivated to support all content in a fair and neutral way,” he added. co Fo m rp m e er rs ci on al a us l, e on JetBlue-Amazon deal isn’t subject to the FCC internet rules; optimizing bandwidth TOKYO—Toshiba Corp. and Western Digital Corp. agreed to settle a dispute over Toshiba’s planned sale of its memory-chip unit, people involved the discussions said, clearing a major hurdle to the nearly $18 billion deal. Directors at both companies separately voted to drop legal cases that they brought against each other, the people said. Lawyers are preparing documents and a formal announcement is expected as soon as this week, they said. In September, Toshiba agreed to sell its NAND flashmemory manufacturing unit to a group led by U.S. private-equity firm Bain Capital LLC for about $18 billion. Apple Inc. and other U.S. companies provided funding for the deal. The Japanese industrial conglomerate was eager to raise money after a March bankruptcy filing by its U.S. nuclear affiliate, Westinghouse Electric Co., left it with liabilities in excess of assets. Western Digital acquired SanDisk, Toshiba’s longtime flash memory business partner, in 2016. It said it had a right of refusal over any sale of the Toshiba unit and filed arbitration claims earlier this year challenging the sale plans. nals to traverse the satellites that carry the traffic. “Our agreement with JetBlue is for marketing purposes. We did not pay for faster delivery of our content and nothing in the agreement impacts the delivery of other video streams,” an Amazon spokeswoman said. “Amazon has long supported net neutrality.” Under the proposed settlement, Toshiba would keep its joint-venture ties with Western Digital, the people involved in the discussions said. The two companies would continue jointly investing in the chip unit to expand manufacturing capacity and Western Digital would continue to have rights to sell part of the unit’s output. Toshiba raised ¥600 billion ($5.3 billion) this month by issuing new shares. Closing the chip deal would put Toshiba’s balance sheet more firmly in the black. If the Western Digital dispute is resolved, the main remaining hurdle to Toshiba’s deal with Bain is antitrust reviews, particularly by authorities in China. NAND flash memory chips, used in smartphones, computer servers and other electronic devices to store data, are in high demand. Toshiba is a distant second to Samsung Electronics Co. in terms of revenue from these products, according to research firm IHS Markit, and analysts say Toshiba must complete the sale as soon as possible to keep the South Korean maker from further cementing its dominance. ly . REUTERS BY TAKASHI MOCHIZUKI Heard on the Street: Truce turns foes into allies............B20 Tracking Shopping Habits Competition in the notoriously low-tech commercial realestate services business is shifting into high-tech arenas. Jones Lang LaSalle Inc., the world’s second-largest commercial property services company by revenue, has cut a deal with a firm that tracks shopping habits of consumers by analyzing the locational pings sent by their mobile devices and apps. JLL executives said this type of “geofencing” analysis by At- lanta-based Alexander Babbage will be valuable to landlords, retailers and others. The technology shows “where you’re going, how much time you spend there and where you go after,” said Greg Maloney, chief executive of retail at JLL. “We can develop patterns to figure out what we need to bring to our shopping centers in order to keep you there longer.” —Peter Grant How to Speak Italian without saying a word? Drape yourself in a necklace you will call “bellisimo”. Handcrafted by Italian artisans, the look is “magnifico”...as is the price. Raffinato ™ no n- AKIO KON/BLOOMBERG NEWS ——— Italy he enduring legacy of family. In the 1960s at just 15 years old, Ferrini Pietro and Grotti Rodolfo began their journey as goldsmiths, honing their metalworking skills at a major workshop in Arezzo known for mentoring some of the best artisans in the world. T For over fifty years they’ve created unsurpassed artisan jewelry that combines age-old Etruscan metalsmithing techniques with innovative design. Today, we bring their talents to America. No questions asked, money back guarantee. 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It is the perfect length, lightweight and is the type of quiet quality that is instantly noticed no matter where or what I wear it with.” — Angie, El Cajon, CA Raffinato™ 18K Gold-Finished Sterling Silver Aria Necklace Stunningly affordable $95 with FREE SHIPPING Also available Raffinato™ 14K Yellow Gold Aria Necklace Stunningly well-priced at $595 with FREE SHIPPING (a $1,295 value) Save $700 • Made in Arezzo, Italy • Available as sterling silver finished in 18K yellow gold or 14K real yellow gold • 18"; lobster clasp Call today. There’s never been a better time to let your elegance shine. 1-888-444-5949 Offer Code: RFA191-01. You must use the offer code to get our special price. Raffinato ™ 14101 Southcross Drive W., Dept. RFA191-01, Burnsville, Minnesota 55337 www.raffinatoitaly.com A collection of impeccable design & craftsmanship from Italy. ‘Pokémon Go’ players try Nintendo’s augmented-reality game on their smartphones in Japan. Nintendo Searches for Help With Its Smartphone Games BY TAKASHI MOCHIZUKI TOKYO—Nintendo Co. is looking to expand tie-ups with software developers to strengthen its smartphonegame lineup after an early alliance aimed at cracking the fast-growing mobile market fell behind schedule, people familiar with the matter said. Nintendo took a 10% stake in smartphone game maker DeNA Co. in 2015, and the two companies said they would introduce five smartphone games by March 2017. They have introduced only four so far, with the latest, “Animal Crossing: Pocket Camp,” coming in November. By collaborating with other software developers in addition to DeNA, Nintendo believes that it could raise the pace of new titles, said people familiar with the efforts. It isn’t planning to take stakes in its new partners, they said. Kyoto-based Nintendo long shunned smartphones, preferring to produce games for its own machines. More recently, company executives have said they see smartphones as a gateway to introduce casual gamers to Nintendo’s franchises and encourage them to Switching Up Nintendo's revenue comes mostly from its Switch console, but it wants to expand in mobile games. Smartphone content and royalties 17.9 Other 0.8 Other videogame machines 31.4 TOTAL ¥374 billion* Switch console ¥245.8 billion 3DS handheld 78.1 *For six months ending Sept. 30 Note: $1 = ¥113.56. Each business platform includes related software and accessories Source: the company THE WALL STREET JOURNAL. trade up to its Switch console. The global market for smartphone games rose 40% in 2016 to about $50 billion, according to Japanese data provider Famitsu, with Japan and China together accounting for more than 60% of the market and the U.S. about 20%. The rapid growth has put pressure on Nintendo to build its presence in mobile games, even though the area is usu- ally less lucrative than its traditional core business of selling consoles for hundreds of dollars and game software at roughly $60 a pop. Among the companies that have held discussions about smartphone games with Nintendo is GungHo Online Entertainment Inc., the Tokyobased maker of the hit “Puzzle & Dragons” smartphone game, said people knowledgeable about the talks. GungHo denied that talks with Nintendo took place. GungHo, a publicly traded company, has released versions of “Puzzle & Dragons” for Nintendo’s 3DS hand-held game devices and was allowed to use characters from the marquee Mario franchise for one of those titles. GungHo has also said it is developing games for the Switch. SoftBank Group Corp. used to have a 39.9% stake in GungHo but now owns only 2.8%. Taizo Son, a brother of SoftBank Chief Executive Masayoshi Son, separately owns a 25.9% stake and has a title as a part-time director, but the company said Taizo Son isn’t actively involved in management. 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. no n- co Fo m rp m e er rs ci on al a us l, e on ly . Wednesday, December 13, 2017 | B5 What is the true meaning of Christmas? It’s more than unwrapping presents, decorating trees, hanging lights, or eating large meals. Listen and you’ll hear it in the voices of children who feel in their hearts that Christmas means something deeper. They sense that Christmas is about closeness—as we gather close with loved ones and grow closer to God through the gift of Jesus. We can show them that Christmas is about giving, by offering our time to serve side-by-side with others. By connecting in special ways with friends and family. And by providing a feeling of belonging to those who need it most. We invite you to take the time to experience true closeness this Christmas. And join us as we unwrap the true meaning at RethinkChurch.org/Christmas. Unwrap the true meaning with us this Christmas at RethinkChurch.org/Christmas. 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. B6 | Wednesday, December 13, 2017 A groundbreaking look at the lives of George H.W. Bush and George W. Bush, the most consequential father-son pair in American history, often in their own words. A gorgeous, authorized celebration of Wonder Woman—from her origins as a founding member of the Justice League to her evolution in television and film. #1 International Bestseller Discover the life-changing phenomenon of giving fewer f*cks. Over 2 million people have… Just in time for the next blockbuster, Star Wars: The Last Jedi, this unique and beautifully designed compendium with removable features traces one of the franchise’s most iconic characters— the stormtrooper. THE STO RY D co Fo m rp m e er rs ci on al a us l, e on LAN T ENG OUGH ILL BR HURCH NK HOW C HE BRI T M O FR BACK ly . BEH IND THE TIO N MA JOR MO PIC TUR E The #1 National Bestseller Simple, scrumptious recipes for crazy busy lives from #1 bestselling author and Food Network host Ree Drummond. The Story Behind the Major Motion Picture “Stands alongside any of the great studies of Churchill.” —Phil Reed, Director Emeritus, Churchill War Museum Instant National Bestseller A powerful collection of essays about gender, sexuality, race, beauty, Hollywood, and what it means to be a modern woman. The New #1 International Bestseller His Holiness the Dalai Lama addresses a divided world, outlining the path to peace and unity. GIVE THE GIFT OF READING n- HarperCollinsPublishers “Rollins’ latest Sigma Force novel is one of the best in the series. Go with him, and you’ll agree that he pulls it off beautifully.” —Booklist (Starred Review) From Gregory Maguire, the national bestselling author of Wicked, comes the imaginative story of the famous Nutcracker and the mysterious oneeyed toymaker who carves him. #1 Wall Street Journal Bestseller* Now in Paperback “Destined to take its place as not only one of the masterworks on Eisenhower, but as one of the classics of presidential history.”—Jay Winik #1 Wall Street Journal Bestseller** Use the seven universal elements of powerful stories to clarify your message, connect with customers, and grow your business. A festive, modern-day reimagining of Charles Dickens’ A Christmas Carol from New York Times bestselling author Cynthia Hand. National Book Award Finalist “Zoboi urges us to examine the American dream to see if there is room within it to hold the ones we love.” —Ebony Magazine U.S. National Champion Karen Chen tells the amazing story of her rise to the top, including never-before-seen photos and behind-the-scenes details from her journey on and off the ice! no New York Times Bestseller “The best new memoir I’ve read in a decade is Amy Tan’s breathtaking highwire act of memory and imagination, Where The Past Begins.” —Mary Karr Discover great authors, exclusive offers, and more at hc.com. © and TM 2017 LUCASFILM LTD WONDER WOMAN and all related characters and elements are trademarks of and © DC Comics. (s17) * 1/20/17 ** 10/20/17 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. Wednesday, December 13, 2017 | B7 * * BUSINESS NEWS Glencore Hitches Itself to Electric Cars copper production to gain 25% by 2020 from 2017, cobalt—of which it is the world’s No. 1 producer—to more than double and nickel to rise 23%. The company said it has completed an $880 million upgrade of one of its massive copper-mining operations in Congo—Katanga Mining— which will help it benefit from rising demand for copper and cobalt. Glencore had suspended production at Katanga in September 2015 so it could refurbish the mine and double annual production of copper to 300,000 metric tons, a goal it expects to reach in 2019. It said Katanga is expected to produce 34,000 tons of cobalt by then, likely making it the most productive cobalt mine in the world. A CRU Group report commissioned by Glencore fore- FactSet. Shares of Glencore are up 26% this year and have risen more than fivefold since investors fled the stock in 2015 amid concerns that tumbling commodity prices could strain the miner’s debt-laden balance sheet. Since then, Glencore has slashed its net debt to $13.9 billion from nearly $30 billion. Cobalt, a byproduct of copper and nickel mining, is expected to see the biggest increase in demand from electric vehicles. Cobalt demand from electric vehicles could surge to 314,000 tons by 2030, a more than fourfold increase from global supply in 2016, according to the report by CRU, a London-based commodities researcher. Mr. Glasenberg said he doubts there is enough cobalt in the world to meet that demand. Glencore is benefiting from rising demand for cobalt, copper and nickel. cast that by 2020, electric-vehicle-related demand— including grid infrastructure and storage, electricity generation, charging stations and the vehicles themselves—could require an additional 390,000 tons of copper, 85,000 tons of nickel and 24,000 tons of cobalt. Year-to-date, copper prices have gained 19%, nickel is up 8.5% and cobalt has more than doubled, according to co Fo m rp m e er rs ci on al a us l, e on ly . BROOKS KRAFT/CORBIS/GETTY IMAGES LONDON—Glencore PLC, long known as one of the world’s dominant coal traders, is finding itself a beneficiary of the greening of the global economy. The Swiss mining giant is benefiting from a coming boom in electric-vehicle production, which is driving up the value of copper, cobalt and nickel—whose demand is expected to surge from production of the vehicles and the lithium-ion batteries that will power their growing fleets. “Electric vehicles will be disruptive to the world,” Chief Executive Ivan Glasenberg said on an investor call Tuesday, and will boost demand for those three commodities. The shift toward commodities that are likely to benefit from policies meant to curb global warming is a noteworthy shift for a company that once bet its future on coal. Mr. Glasenberg said days after Glencore’s 2013 purchase of Xstrata PLC that the deal— the mining sector’s largest ever—was a “a big play” on coal. But tumbling coal prices later dinged Glencore’s earnings, raising concerns that Mr. Glasenberg’s bet had gone bust. Coal prices have rallied in the past year along with most other commodities. Now, commodities involved in the production of electric vehicles are becoming a primary earnings driver for Glencore. On Tuesday, the company forecast strong production growth in all three metals over the next few years, primarily due to electric-vehicle demand. It expects DIANA ZEYNEB ALHINDAWI FOR THE WALL STREET JOURNAL BY SCOTT PATTERSON Some Harvard University students want to form a union. Harvard’s Appeal On Vote Is Denied BY MELISSA KORN The National Labor Relations Board on Tuesday upheld a ruling that Harvard University had prevented a proper union election last year for graduate-student workers, denying the school’s appeal of a regional board decision that called for a new election. The NLRB’s regional director determined in July that Harvard violated a rule regarding an employer’s responsibility to share with a union a list of eligible voters, and invalidated the election. The university “unintentionally omitted” 533 people from the list, according to a letter by Harvard’s provost last month. The November 2016 vote by Harvard students who work as teaching assistants and researchers was deemed too close to call. An NLRB tally last December counted 1,456 votes against unionization and 1,272 for, with 314 ballots challenged over voter eligibility. (Another “no” vote was later added.) Julie Kushner, a regional director at the UAW, called the NLRB’s latest decision “a shot in the arm to this growing movement.” Harvard spokeswoman Anna Cowenhoven said Tuesday that the school still believes the November 2016 election was fair, and that “well-informed students turned out in high numbers to vote.” She called the NLRB’s decision “disappointing.” AMAZON.COM ter, known as its Beijing region, operates in partnership with Beijing Sinnet Technology Co. —Liza Lin no Second Cloud Center Opens in China n- BUSINESS WATCH Amazon.com Inc. opened a second cloud-computing datacenter complex in China on Tuesday, underlining the importance of the market to its cloudcomputing unit, Amazon Web Services. The unit, known as AWS, is joining with Ningxia Western Cloud Data Technology Co. for the new center, based in the northern Chinese city of Ningxia. China is now the only country outside the U.S. where AWS operates two separate clusters, or technology-infrastructure regions, which host cloud-services facilities such as data storage and networking. Its first Chinese clus- PHILLIPS 66 Refiner’s President To Retire This Month Phillips 66 President Tim Taylor will retire later this month, the refiner said Tuesday. Mr. Taylor was named president in 2014 and also serves as president and a member of the board of directors of Phillips 66 Partners, the company’s pipeline business. Phillips, one of the country’s largest refiners, has turned its focus to chemicals and pipelines in recent years as concerns over long-term fuel demand grow. —Christopher M. Matthews Linda Bannister, CFA, CFP® Senior Analyst - Healthcare Equity Research THE BEST OF BOTH WORLDS: AUTONOMY, WITH WORLD-CLASS SUPPORT. THE MORE YOU KNOW, THE MORE WE MAKE SENSE. Our 14,000 financial advisors run their own offices and make their own decisions. But they have vast resources at their disposal, from a dedicated Branch Office Administrator to the most advanced technological tools and resources in the industry. It’s a unique business model that’s helped us become one of the largest financial services firms in the country. Maybe it’s time to grow your practice here. Maybe it’s time you got to know Edward Jones. Visit edwardjones.com/knowmore ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds INTERNATIONAL NOTICES LEGAL NOTICES ADVERTISE TODAY (800) 366-3975 sales.legalnotices @wsj.com For more information visit wsj.com/classifieds © 2017 Dow Jones & Company, Inc. All Rights Reserved. !" ! # $$ $$! % & ' $ & & ($!) $ *# + ! ,-,( . ( ,//01 “HIGHEST IN EMPLOYEE ADVISOR SATISFACTION AMONG FINANCIAL INVESTMENT FIRMS” Edward Jones received the highest numerical score in the Employee Advisor Segment in the J.D. Power 2017 Financial Advisor Satisfaction Study, based on 1,761 total responses from 10 companies in the segment measuring experiences and perceptions of financial advisors, surveyed January–April 2017. Your experiences may vary. Visit jdpower.com For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. B8 | Wednesday, December 13, 2017 co Fo m rp m e er rs ci on al a us l, e on ly . For tomorrow’s business leaders, class is in. no n- SIR MART I N SOR R EL L C E O, WPP It takes many skills to succeed as a business leader. Lessons in Leadership, from Dow Jones and London’s Cass Business School, gives you insights from some of the world’s foremost CEOs through video masterclasses and ﬁrst-hand experience. To take the next step or sign up your team visit masterclasses.dowjones.com © 2017, Cass Business School, Dow Jones, and Ptwo Publishers. All rights reserved. 6DJ6182 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. Wednesday, December 13, 2017 | B9 THE WALL STREET JOURNAL. BUSINESS NEWS NFL Network Suspends Three Employees PAT GRENNHOUSE/BOSTON GLOBE/GETTY IMAGES BY JOE FLINT Kristen Cavallo Interpublic Appoints New Chief At Martin The NFL Network has suspended three members of its on-air team in response to allegations of sexual harassment made in a lawsuit by a former employee. Marshall Faulk, Ike Taylor and Heath Evans, all former National Football League players, won’t appear on the NFLowned channel while the network investigates the allegations of verbal and physical harassment, a spokesman for the network said. The suit’s impact extended to sports commentator Bill Simmons’s media company, the Ringer, and to Walt Dis- ney Co.’s ESPN. Former NFL Network employees at the Ringer and ESPN also were suspended or put on leave. Former NFL Network wardrobe stylist Jami Cantor said in the suit she was subject to harassment by Messrs. Faulk, Taylor and Evans, as well as from former NFL Network executive Eric Weinberger and Donovan McNabb and Eric Davis, both former players who had worked at the network as on-air talent and are now at ESPN. Mr. Weinberger now works for the Ringer. Mr. Weinberger has been placed on leave, a spokesman for the Ringer said. ESPN said it was suspending Messrs. Mc- Nabb and Davis, who both work for its radio unit, while it conducts its own investigation into the matter. Ms. Cantor’s suit—which was initially filed in October in California Superior Court in Los Angeles County and claimed wrongful termination—was amended Monday to include the harassment allegations. Ms. Cantor said the NFL Network fired her in October 2016, claiming she had stolen clothes. She denied the accusation. Representatives for Messrs. Faulk, Evans and Taylor didn’t respond to a request for comment. Mr. Weinberger also didn’t respond to a request for comment. A representative for Mr. McNabb didn’t immediately respond to a request for comment and Mr. Davis couldn’t be reached for comment. Mr. Faulk, a Hall of Fame running back, is accused by Ms. Cantor of fondling her breasts on one occasion and, on another, dropping his pants and “pointing to his crotch and asking Plaintiff, ‘When are you gonna get on this already?’ He also pinned Plaintiff against a wall, demanding oral sex while he pulled his pants down,” the suit said. Mr. Taylor is accused of sending Ms. Cantor photos of a sexual nature and a video in which he is masturbating in the shower, according to the suit. Mr. Evans is alleged to have sent nude pictures of himself to Ms. Cantor and propositioned her on multiple occasions, the suit said. Mr. Weinberger, a former executive producer at the NFL Network, is accused of sending Ms. Cantor nude photos of himself as well as trying to coerce her to have sex with him and rubbing himself against her, according to the suit. The Ringer spokesman called the allegations “very disturbing” and said Mr. Weinberger is on indefinite leave while the company conducts an internal investigation. BY SUZANNE VRANICA co Fo m rp m e er rs ci on al a us l, e on ly . Interpublic Group of Cos. is installing new leadership at the Martin Agency after the departure of the ad agency’s top creative executive following allegations of sexual harassment. Interpublic named Kristen Cavallo as the first female chief executive officer of the Martin Agency, according to people familiar with the matter. Ms. Cavallo had worked at the Martin Agency for about 13 years and was most recently U.S. chief strategy officer at MullenLowe, another Interpublic-owned agency. The current CEO of the Martin Agency is Matt Williams, and it isn’t clear what role he will have. A spokesman for the Martin Agency referred calls to Interpublic. Mr. Williams didn’t immediately return calls for comment. no Earlier this month, the Martin Agency dismissed its chief creative officer, Joe Alexander, who helped put the agency on the map with popular ads for such companies as Geico and Wal-Mart Stores. The dismissal followed an internal investigation of an allegation of sexual harassment. Last week, Adweek reported details of accusations of sexual harassment and alleged inappropriate behavior by Mr. Alexander. Some individuals said they complained about the executive’s conduct several years ago but were told to resolve their issues with Mr. Alexander directly, according to the article. In a memo to the staff dated Dec. 7 and reviewed by The Wall Street Journal, the agency said, “The behavior that Martin’s former [chief creative officer], Joe Alexander, is accused of is inexcusable.” The memo also apologized to staffers, saying: “We’re deeply sorry that any of you ever felt unsafe or unheard.” Attempts to reach Mr. Alexander were unsuccessful. He has said the allegations of sexual misconduct are false. “Rather than a drawn-out, hurtful investigation, resigning was the proper thing to do to protect my family and all the people I’ve worked so closely together with in my 26 wonderful years,” he told Adweek. Based in Richmond, Va., the Martin Agency has been behind popular ad characters, such as Geico’s gecko and its cavemen. n- Kristen Cavallo is the first female chief executive officer of the Martin Agency. TRUSTED NEWS AND INSIGHTS ON THE GO. WSJ APP FOR iOS. DOWNLOAD NOW ©2017 Dow Jones & Co., Inc. All rights reserved. 1DJ2461 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 | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. NY BUSINESS NEWS try the best pure cotton white non-iron dress shirt UNBEATABLE INTRODUCTORY OFFER reg IAN HITCHCOCK/GETTY IMAGES $24.95 $89.50 you save • FREE monogramming reg $10.95 • add this pure silk tie for just $19.95 reg $72.50 blue, black, red, yellow, green, orange Canada Says Boeing Risks Failing in Fighter Contest BY PAUL VIEIRA AND DOUG CAMERON OTTAWA—Canada fired a shot across Boeing Co.’s bow on Tuesday, saying it intends to launch a fighter-jet competition next year that would penalize bidders that cause “harm” to the economy, a reference to the U.S. aircraft maker and its trade complaint against Canada’s Bombardier Inc. In the meantime, Canada intends to buy 18 secondhand jet fighters from Australia to augment its aging fleet of Boeing F/ A-18s and allow it to complete NATO missions. The stopgap measure will substitute for original plans to acquire from Boeing brand-new models of the combat jet, dubbed the Super Hornet, at a cost of $5.2 billion. Canada said it plans to launch a bidding process for 88 new jet fighters with a tender out in mid-2019, to replace its fleet of 76 F/A-18 aircraft, which were acquired between 1982 and 1988. According to officials, a winner would be unveiled in 2022—or 12 years after the previous Conservative government pledged to buy 65 F-35s from Lockheed Martin Corp. The F-35 purchase was put on hold in 2012 due to a political uproar over how much the acquisition would eventually cost taxpayers. As part of his winning election platform in 2015, Canadian Prime Minister Justin Trudeau vowed not to proceed with the F-35 acquisition. Canadian defense officials said the Australian planes are of similar age and design to the Canadian fleet, and the aircraft should be rather straightforward to integrate. Canada’s plan to buy new aircraft envisages delivery beginning as early as 2025. Officials said the trade feud with Boeing has prompted Ottawa to include a new test in the tender co Fo m rp m e er rs ci on al a us l, e on white 100% wrinkle-free cotton / easy non-iron care 4 collar styles / button or french cuffs regular, big & tall or slim fit sizes Maintenance on a Super Hornet. Ottawa had planned to update its fleet with the aircraft’s latest model. paulfredrick.com/best 800-309-6000 use promo code T7HPWB FREE EXCHANGES. ADVERTISEMENT new customer offer. limit 4 shirts. imported. shipping extra. expires 1/31/18. The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds BUSINESS OPPORTUNITIES ! 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Ross-Simons Item #865049 First & Business www.cooktravel.net (800) 435-8776 THEMART ADVERTISE TODAY (800) 366-3975 firstname.lastname@example.org For more information visit: wsj.com/classifieds To receive this special offer, use offer code: LUSH33 1.800.556.7376 or visit www.ross-simons.com/LUSH © 2017 Dow Jones & Company, Inc. All Rights Reserved. process. Officials said would-be bidders responsible for harm to Canada’s economic interests would be at a “distinct disadvantage.” Boeing’s complained this year to U.S. authorities that Bombardier’s commercial-aircraft production and sales benefited from state subsidies. Following a probe, the Commerce Department slapped preliminary tariffs of roughly 300% on Bombardier’s CSeries commercial aircraft. Canadian officials reiterated Tuesday the complaint and resulting tariffs are without merit. Carla Qualtrough, Canadian minister for public services and procurement, said Boeing has time to rethink its approach toward Canada as the tender won’t be issued until mid-2019. A spokesman for Boeing said it would review Canada’s tender once it is released and make a decision on whether to bid at that time. ly . 70% Finance Firm Seeks Protection BY BECKY YERAK J.G. Wentworth Co., known for its “877-Cash-Now” television ads, filed for bankruptcy protection on Tuesday, citing challenges ranging from unsustainable debt obligations to new competition that is easily able to find customer leads online. It marked the second bankruptcy filing in less than nine years for J.G. Wentworth, which last month announced a debt-for-equity swap with lenders that the specialty finance company warned would involve another chapter 11 reorganization. Earlier this month, the Chesterbrook, Pa.-based company, which offers mortgages and buys life-insurance policies and other hard-to-sell assets, began conducting voting on a restructuring deal that it had reached last month with lenders. J.G. Wentworth said in court filings on Tuesday that its prepackaged reorganization plan has received enough votes from lenders and others. In a prepackaged bankruptcy, a company negotiates with key creditors and solicits votes on its plan before actually filing its chapter 11 petition. Prepacks allow companies to shorten the often costly bankruptcy process. During the proceedings in U.S. Bankruptcy Court in Wilmington, Del., J.G. Wentworth will get a new revolving credit facility from one of its prebankruptcy lenders, which will help the company maintain ongoing business operations with virtually no interruption, according to a declaration filed with the court Tuesday by J.G. Wentworth Chief Executive Stewart Stockdale. J.G. Wentworth said its operating units, which also include a mortgage-lending business that does business with the U.S. government, won’t be part of the bankruptcy filing. “The restructuring is a pure balance sheet restructuring at the corporate level and is not an operational restructuring of the company,” Mr. Stockdale said. 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. Wednesday, December 13, 2017 | B10A PAID ADVERTISEMENT CHINA DAILY ALL YOU NEED TO KNOW This supplement was paid for and prepared solely by China Daily, an official publication of the People’s Republic of China.The Wall Street Journal news organization and advertising department were not involved in the creation of this content. INSIGHT FROM OUTSIDE COUNTRY SCHOOLS GET A HELPING HAND, P2 Political, business and academic leaders from around the world met for the Fortune Global Forum in Guangzhou, Guangdong province, from Dec. 6 to 8. In a message of congratulations at the start of the forum, Chinese President Xi Jinping said the country will become increasingly open, such as in business, which will become more transparent and better regulated. FENG YONGBIN / CHINA DAILY When Ma and Ma Went Head to Head “We don’t rent the counter to let you do business. Instead, we help you build the house. Once completed, the house is yours.” A l i ba ba i s b est k n ow n a s a n e-commerce company and Tencent as a social networking and gaming company. Competition between the two has intensified in recent years as both have extended their reach to business activities such as entertainment and internet ﬁnance. “Tencent is a great company and Pony deserves my respect,” Jack Ma said. “We will compete with it.” Pony Ma said,“I have knownJack Ma for many years. The bad thing is that there is so much competition that we often run up against one another.” co Fo m rp m e er rs ci on al a us l, e on FROM AFAR THEY CAME JESUITS IN CHINA HELD GREAT SWAY IN HIGH PLACES, P4 Money Memorabilia Is Given Bigger Bite By CHEN WEIHUA I am especially excited to introduce this product, because I was born in the Year of the Dog.” LEONARD OLIJAR DIRECTOR OF THE U.S. BUREAU OF ENGRAVING AND PRINTING n- decorative Chinese symbolism and is packaged in a symbolic, red folder with embossed, gold foil. It features an uncirculated $1 Federal Reserve note with a serial number beginning with”8888,” the number Chinese associate with luck and fortune. A total of 108,888 of the products were to be available for sale, more than in previous years, Olijar said. They cost $5.95 each. There will be a discount for bulk sale but a limit of 250 units was imposed for the first week of release for household quantity purchase. Since 2000, the bureau has put 29 Lucky Money products on the market and sold 2 million items. The last 25 products all sold out. Olijar said he expected the same to happen this time. no Leonard Olijar, director of t h e U.S. B u re a u of Engraving and Printing, seemed like a happy man on the morning of Nov. 14 as he announced the release of the bureau’s Year of the Dog 2018 product to celebrate the upcoming Chinese Lunar Year of the Dog. It was the latest addition of the bureau’s Lucky Money Collection products, introduced in 2000. “I am especially excited to introduce this product, because I was born in the Year of the Dog, which tells you a little bit about how old I am,”Olijar said, adding that President Donald Trump was also born in the Year of the Dog. “The dog carries traits of loyalty and honesty. Those born under the dog sign are extremely friendly, faithful, smart, industrious and have a strong sense of responsibility.” The dog is one of the 12 zodiac signs associated with the Chinese lunar calendar. The Year of the Dog begins on Feb. 16. Over the past century the dog years were 2006, 1994, 1982, 1970, 1958, 1946, 1934 and 1922. The Year of the Dog 2018 product is designed with The founders of China’s two biggest technology companies seem to agree that artiﬁcial intelligence will revolutionize the world, but how to make it happen and supportsmallbusinessessetstwoofAsia’s richest men apart. At the 2017 Fortune Global Forum in Guangzhou on Dec.6Jack Ma,the founder of Alibaba Group Holding Ltd., said he was optimistic about the development of technologies such as AI and that he is willing to use it to empowerAlibaba and its customers.“AI is still in its infancy.Our goal is to be an enabler that continuously helps small businesses reach more consumers and apply technology in a very costeffective way.” Pony Ma, founder of Tencent Holdings Ltd., agreed on the key role AI will play in the future and highlighted its potential in health care. “The health care and medical sector will be very promising, and the market will be worth several hundreds of billions of dollars,” he said. But Pony Ma faulted Alibaba’s efforts to build infrastructure for small businesses, saying it will make them over-reliant on the internet company. “If all the channels are in someone’s hands, then your destiny is in his or her hands, and so is your proﬁt,” he said at the forum. Tencent is taking a different approach, empowering partners in a decentralized way so as to make them feel more secure, he said. ly . By OUYANG SHIJIA and MA SI On Other Side of the River, Robots Are on the March Shanghai locals brim with pride over gleaming skyscrapers of Pudong, but on the ground other dazzling things are happening. Li Yang reports T he old-timers of Shanghai’s Caoyang neighborhood reckon they know exactly h ow t h i n g s wo r k : t h e march of progress is so inexorable that land in the neighboring Pudong New District that lies empty will be that which commands by far the highest price. Caoyang, built in 1951, is in Puxi, which refers to the area west of the Huangpu River, an area that Westerners occupied in the mid-19th century. Puxi became a forest of foreign settlements, and for many, Pudong, on the other side of the river, was regarded as a something of a backwater. Caoyang itself was China’s first “new village for workers,” a residential community of matchbox apartment buildings designed by architects from the Soviet Union in the 1950s. Only those awarded honorary titles such as “model worker” or “advanced worker,” were allowed to live in the apartments, in which two homes shared one toilet while most locals used closestools. In 1993 China started developing Pudong, and it now contributes onethird of Shanghai’s GDP even though only one-ﬁfth of the population live there. The skyline marked by its high-rises has become a source of pride for the city. Though constantly renovated,Caoyang, once a high-end community, is now Our aim is to seek all-round innovations in materials, devices and assembly units...” YU YINGJIE DIRECTOR OF SHANGHAI ENGINEERING CENTER FOR MICROSATELLITES dwarfed by skyscrapers clad in flashy glass curtains in Pudong. The old workers of Puxi were skilled in traditional manufacturing, whereas today’s workers of Pudong make satellites, aircraft and engines, said Pei Lei,a self-employed electronic engineer in Pudong from Ma’anshan,Anhui province. “The Huangpu River seems like a boundary marking the old days and the future of Shanghai’s industrial development,” Pei said. Pei is one of the young people pursuing his dreams in Pudong, which attracts young skilled workers through a series of incentives including free housing, tax cuts and cash subsidies. The aging rate in Caoyang is nearly 35%, double that of Pudong. “I am proud to work in the ﬁrst matrix of China’s largest and the world’s thirdlargest synchrotronradiation lightsource,” said He You, a researcher in Shanghai Synchrotron Radiation Facility, a State high-tech project in Pudong. The luminance of the light source is 1,000 times that of common X-rays, making it possible to discern the structure of even a virus and a microstructure of some materials, He said. “It is like a super microscope, making some difficult problems easy,” He said. “Scientists from across the country have made more than 15,000 trips to do experiments with the equipment, and I am glad my work helps them.” Yu Yingjie, director of Shanghai Engineering Center for Microsatellites, said,“The average age of our researchers is 31. We have made 25 microsatellites since the center was established 14 years ago, and all of them have successfully been sent into space, and worked well.” T h e ce n te r i s wo r k i n g o n 3 0 microsatellites in the ﬁelds of dark matter research,global positioning,atmospheric pollution and climate change research, and quantum communication. “All of our satellites are ground-breaking in their respective fields,” Yu said. “Our aim is to seek all-round innovations in materials, devices and assembly units, so as to promote the upgrading of the whole industrial chain related to the satellite engineering.” SEE “HIGH-TECH” ON P2 Foreign Financial Firms Ready for Business By WU YIYAO Leonard Olijar, director of the U.S. Bureau of Engraving and Printing, holds a Year of the Dog 2018 product at a news conference. PROVIDED TO CHINA DAILY China’s ﬁnancial industry will become more competitive in the wake of the government’s decision to further open up the sector to foreign competition. Major new rules announced earlier by Zhu Guangyao, deputy ﬁnance minister, will give global investment banks and insurance companies unprecedented access to the world’s second-largest economy. Foreign ﬁnancial ﬁrms will be allowed to own up to 51% in mainland fund managers, securities ventures and brokerages. The current limit is 49%. A no-limit clause spread over three years takes force after that. “Following years of opening up and reforms, China’s competence in the financial sector has been significantly improved and is able to face more competition from the global market,” said Wang Jun, chief economist with Zhong Yuan Bank, a commercial lender in Zhengzhou, Henan province. Over the past 15 years red tape in the financial sector has been cut and regulations tweaked, lifting the foreign ownership limit from 33% to 49%. In the insurance sector, China plans to lift the overseas ownership cap to 51% for three years and remove the limit after ﬁve. Economists and analysts have welcomed the latest moves. “The country’s ﬁnancial sector is now operating in a stable manner, which provides excellent conditions for further opening up the industry,” said Lian Ping, chief economist with the Bank of Communications Ltd., one of the biggest lenders in China. SEE “INVESTORS” ON P2 China Watch materials are distributed by China Daily Distribution Corp., on behalf of China Daily Beijing, China. Additional information is on ﬁle with the Department of Justice, Washington, D.C. 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. B10B | Wednesday, December 13, 2017 PAID ADVERTISEMENT 2 | China CHINA DAILY Schools in Need Are Friends Indeed As rural schools struggle with a lack of staff members, teachers from outside are coming to the rescue. Li Lei reports O co Fo m rp m e er rs ci on al a us l, e on ly . Chen Chen, a Teach for China volunteer, teaches an English class at Xinhe Primary School in Dazhai village, Yunnan province. PHOTOS PROVIDED TO CHINA DAILY Left: Students of Xinhe Primary School at play. Right: He Liu (center) during a seminar with colleagues at Dazhai Middle School. Poor education in isolated areas compromises the quality of the rural workforce, and that could hamper the country’s development.” WANG LIWEI EDUCATION POLICY RESEARCHER n- “When I was young, the village seemed to be the entire world to me. It was He who made me realize that our village is so small and that I could go out and see the world if I worked hard.” Teach for China says that about 1,000 fresh graduates from China’s top universities joined its program between 2008 and 2016. In 2006 the marks in about 470 classes involved with the program rose, and in more than 420 the number of students who regularly scored no ver the past decade a nonprofit organization has been trying to reverse an imbalance in the quality of education provided in urban and rural areas. Since 2008,Teach for China has been sending graduate volunteers from some of the country’s top universities to teach in remote villages and tackle a shortage of talented teachers. The program is now beginning to reap rewards. When He Liu, now 29, arrived at the middle school in Dazhai village, Yunnan province, seven years ago, local children had probably never heard of Beethoven, Chopin or other composers, and often many looked confused when their new teacher played a nocturne in class or showed them DVDs of The Phantom of the Opera. For the students, anything from outside their isolated village was entirely unknown, and therefore hard to comprehend. “But as they listened to more songs and watched more movies, I saw signs that they were enjoying themselves,” said the graduate of Beijing Normal University. “Some would nod their heads to the music and pretend they were conducting.” After graduating in 2010, He traveled to the mountainous region to work as a history teacher. He discovered that most of the teachers in the village had graduated from vocational schools and could teach little more than the contents of textbooks. “In addition, the parents, who had been farmers all their lives,or worked in big cities and left their children in the care of their grandparents, could only provide limited knowledge. Those factors were taking a toll on the students.” Feng Qingli, who was head teacher during He’s time in the village, said the isolated location hampers the children’s progress. “Nearly all of them work hard, but the problem is that they have limited contact with the outside world.” Zhang Yue, one of He’s former students, followed in her old teacher’s footsteps and studied in Beijing,attending Beihang University. She said He had helped broaden her horizons and was a lasting inﬂuence on her life. Beijing’s ﬁnancial district has attracted major international banks and ﬁnance houses. BAO FAN / FOR CHINA DAILY Investors: Three More Are Granted Approval FROM PAGE 1 “Market liberalization will help meet foreign capital demand and attract more foreign capital to China in the long term.” Liberalization will also encourage Chinese-owned financial firms to become more competitive. Customers can expect a new array of products while management structures will be streamlined. “The move was unprecedented andfarbeyondmarketexpectations,” Wang said. Overall, the new policy is expected to be credit positive for the country as it will encourage foreign capital to ﬂowtoﬁnancialﬁrmsandstrengthen their risk management capabilities. “The lack of talented teachers means the better-off parents send their children to schools in nearby townshipsandbigcities,but,inreturn, the loss of students exacerbates the problem of teacher shortages because they also gravitate toward larger towns. It’s a vicious circle.” Pasinetti, a U.S.-Italian dual national, founded Teach for China in 2008, basing the organization on the model of Teach for America. Its Chinese name is Meili Zhongguo, meaning Beautiful China. Unlike other education assistance programs, Teach for China does not advocate a one-way street, whereby teachers become permanent fixtures in isolated spots. Instead, it emphasizes the mutual benefits the two-year program offers both teachers and students. Liu Pengze, director of the Beijing Lead Future Foundation, an NGO that provides most of the funding for Teach for China, said volunteer teaching programs are not a new phenomenon in China,which has had the Project Hope and other initiatives, but nearly all of them advocate a life-long devotion to teaching at the grassroots level. “The unequal access to quality education is a result of urbanization, so it’s unfair to expect these young skilled people to travel to unappealing, isolated villages and teach in them for the rest of their lives.” Before they enter the classroom, each graduate on the Teach for China program undertakes a training course that lasts four to six weeks. The course provides introductions to teaching methods, management skills and local customs, and helps the students to hone their skills through multiple trial lectures.During training they are paid a monthly stipend of 2,200 yuan, but once they are in the field they receive 2,800 yuan a month. Pasinetti said that while the financial rewards are low, the graduates benefit greatly from the experience. “Few employers would leave demanding tasks to new employees and let them assume huge responsibility, but in rural primary schools our graduates are like the CEOs of each class,” he said. He Liu, the teacher, said his experience in Dazhai helped to formulate a pattern of thinking that he has retained. “The teaching process is goals-oriented and requires a clear plan. It molded my thought pattern, which I apply to my everyday tasks.” Teach for China says the graduates become more willing to stay in the education sector as they progress through the two-year program. “Initially, only about 6% or 7% say they will stay in education after their placement, but the number rises to 70% when they ﬁnish the program,” Liu said. “This is in alignment with the regulator’s target to enhance overall risk management in the financial sector,” Moody’s Investors Service said in a note. Foreign financial firms have applauded the decision with major players, such as JPMorgan Chase & Co. and Morgan Stanley, saying they are committed to China. “We welcome this milestone policy change, which we believe will bring further investment to China and create new business momentum for the ﬁnancial services industry,” a Morgan Stanley spokesperson said. “Morgan Stanley is committed to growing our businesses in China, and we see this policy change as an important step in the further more than 80% in exams rose greatly. Since the reform and openingup policy started in the late 1970s, China’s economy has grown to become the world’s second-largest. However, the downside is that rapid urbanization has widened the urbanrural divide, and the gulf in education is one of the most worrying problems, experts said. Wang Liwei, a researcher at the 21st Century Education Research Institute, a nonproﬁt organization in Beijing that specializes in education policy research and advocacy, said the quality of rural education is signiﬁcant because a high proportion of the population still lives in the countryside. “Poor education in isolated areas compromises the quality of the rural workforce, and that could hamper the country’s development. People whose low educational status makes them unemployable also pose a threat to social stability.” Ove r t h e pa st d e ca d e t h e government has spent ever- development and opening-up of China’s capital markets,” the spokesperson said. Still, this latest move is in line with other key policies during the past few years to increase foreign capital in the country’s markets. The Wholly Foreign Owned Enterprises pilot program was introduced in selected free trade zones in the country,allowing foreign firms to have access to various ﬁnancial sectors. Since last year, more than 10 WFOEs have applied to launch privatefundmanagementﬁrms,with atleasthalfupandrunningbythefall. Last month three more WFOEs, Invesco Finance Plc, Neuberger Berman Group LLC and Value Partners Group Ltd., were approved by the regulator to operate in China. “Ahigher number ofWFOEs would mean the capital market will have more options and a wider range of products,” a research note from China Merchants Securities said. “ ( T h i s w i l l ) c re a t e m o re opportunities for investors to hold assets in a diversiﬁed manner.” In the long term, brokerages, i n s u ra n ce co m pa n i es, f u n d managers and banks look certain to benefit from this latest round of market liberalization, ShenwanHongyuan Securities said. “Opening up will come at its own pace and generate its own momentum with risk management and control as the bottom line,” ShenwanHongyuan Securities said in a note. “Both foreign (ﬁrms) and Chinese ﬁnancial services providers are going to be patient (during this period). But the trend is irreversible.” increasing sums on upgrading the infrastructure of rural schools, providing better buildings and facilities, and introducing incentives to attract skilled teachers to isolated areas. In 2012 central government spending on education reached 2.7 trillion yuan ($408 billion), surpassing 4% of national GDP for the first time, the Ministry of Education says. The ﬁgure has risen ever since, and last year was 3.8 trillion yuan, which was 5.2% of GDP. The increased investment means ruralstudentsnolongerhavetoworry about crumbling school buildings, and internet access and multimedia teaching are now commonplace. “Ifyoutakeatourofthecountryside now, it’s amazing to see that schools are always the fanciest buildings,” said Andrea Pasinetti, founder and chief executive of Teach for China. However, according to Wang, the researcher, despite the improved infrastructure, some rural areas are still experiencing severe shortages of skilled teachers. High-tech: Young Talent Floods in FROM PAGE 1 Also in the industrial zone is Shanghai PartnerX Robot Co., the world’s first educational robot research and development enterprise. Xu Jiping, 23, an employee of the company, said, “I dream of making a robot that can help people, and the company provides me with a platform to realize my dream. The company can make all the parts and devices needed for my dream, from electrical machinery to steering engine and controller.” Half a year after graduating from college, Xu has his own team, and he believes artificial intelligence represents the future of robots. Shanghai,with its open and healthy business environment, high-quality public services and solid industrial foundation, attracts young talent like magnets, said Zhang Weiwei, director of the China Institute of Fudan University in Shanghai. “The emerging strategic industries account for 26.7% of the total industrial output in the city. The inflow of young talent, one of the most valuable assets, lays a solid foundation for Shanghai to boost further development of these industries.” CONTACT US China Daily 15 Huixin Dongjie, Chaoyang, Beijing, China 100029 +86 (0) 10 64918366 email@example.com Advertising: +86 (0) 10 64918631; firstname.lastname@example.org Website: www.chinadaily.com.cn Follow us on: Facebook.com/chinadaily twitter.com/ChinaDailyUSA China Daily U.S.A. 1500 Broadway, Suite 2800, New York, NY 10036 +1 212 537 8888 email@example.com China Daily Asia Paciﬁc China Daily Hong Kong Room 1818, Hing Wai Centre, 7 Tin Wan Praya Road, Aberdeen, Hong Kong +852 2518 5111 firstname.lastname@example.org email@example.com China Daily U.K. 90 Cannon Street, London EC4N6HA +44 (0) 207 398 8270 firstname.lastname@example.org China Daily Africa P.O.Box 27281-00100, Nairobi, Kenya +254 (0) 20 2428589 email@example.com © 2017 China Daily 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. THE WALL STREET JOURNAL. Wednesday, December 13, 2017 | B10C PAID ADVERTISEMENT Conference special | 3 CHINA DAILY China Can Play Key Role in Setting 5G Standards By FAN FEIFEI co Fo m rp m e er rs ci on al a us l, e on GLOBAL EFFORTS FOR DIGITAL GROWTH Senior official calls on countries to build a fair and efficient governance system together. Ouyang Shijia reports “Working together, we should deepen global cooperation on cybersecurity, strengthen data protection and combat crimes in the field of digital economy,” Xu said. Digital economy is playing an increasingly significant part in driving China’s economic growth. The size of China’s digital economy hit 22 trillion yuan ($3.3 trillion) in 2016, accounting for 30% of the country’s gross domestic product. Yuan Jiajun, governor of Zhejiang province, said the digital economy is also increasingly becoming a key driver to boost global economic development. “The digital economy is experiencing a new phase of high growth, and is projected to be worth $16 trillion in China by 2035,” Yuan added. Seeing the big potential, the Chinese government has attached great importance to the development of the digital economy and introduced a wide range of strategies and operations, including the national IT development strategy, the national big data n- C hina is willing to deepen global cooperation in the digital economy to gain new momentum and expand global economic growth, the head of the country’s internet regulatory body said earlier this month. Xu Lin, minister of the Cyberspace Administration of China, reiterated that China would further open its economy and would work with other countries to develop an integrated global digital market with mutual beneﬁts. “We will actively implement the G20 Digital Economy Development and Cooperation Initiative and deepen international cooperation related to the Belt and Road Initiative,”Xu said at the fourth World Internet Conference held in Wuzhen, Zhejiang province from Dec. 3 to 5. According to Xu, countries should strengthen cooperation in policy making and regulation on network facilities, information technology, cross-border e-commerce, data distribution and other digital related fields to build a fair and efficient governance system. strategy and the “Internet Plus” action plan. Statistics from the China Internet Network Information Center back up this internet boom. By June this year, the country had about 750 million netizens, accounting for one-ﬁfth of the global total. “To promote and support the development of the digital economy, it is necessary for global leaders, governments, related industries and academia to reach a consensus,” said Wang Binying, deputy directorgeneral of the World Intellectual Property Organization. She added that the digital economy will accelerate transformation and upgrading in various industries, and have a huge impact on people’s daily life. Zhang Yong, CEO of Chinese e-commerce giant Alibaba Group Holding Ltd., agreed, saying the integration of the digital and real economies offers a promising blueprint for future development. “It offers enormous opportunities for China to catch up with leading countries,” he said. no Joint Response for Kids’ Protection By ZHAO XINYING T h e i n t e r n e t h a s b ro u g h t great benefits to young people, p a r t i c u l a r l y t h o s e w h o a re marginalized or live in remote communities. Yet it also presents serious risks to child safety, according to a top international expert. Children worldwide face threats from cyberbullying, internet fraud and invasions of privacy and only the joint efforts of governments, tech companies and NGOs can protect them, said Rana Flowers, China representative of the United Nations Children’s Fund, also known as UNICEF. “Protecting children online goes beyond borders and requires better international cooperation,” she said in an email exchange ahead of the fourth World Internet Conference. UNICEF has treated the protection of children online as a priority for many years, she said, adding that this year’s edition of The State of the World’s Children, the organization’s annual report, will focus on the beneﬁts and risks young people face in the digital age. Authorities and tech enterprises in China are actively working with UNICEF to make the internet safer for children, according to Flowers. “We commend the efforts of the Chinese government to introduce l aws a n d g u i d e l i n es fo r t h e protection of children online and offline,” she said. “The willingness to investigate and introduce better ly . Officials and business leaders at the opening ceremony of the fourth World Internet Conference and the Light of Internet Expo on Dec. 3 in Wuzhen, Zhejiang province. ZOU HONG / CHINA DAILY China is now at the forefront of research and development when it comes to 5G technology. Industry leaders underlined the country’s role in helping to lay the foundations of a unified global standard for the next generation of mobile technology. Telecom carriers have invested heavily in 5G, carrying out tests in several major cities, Bi Qi, chief technical officer at the China Telecom Research Institute, told a forum at the fourth World Internet Conference on Dec. 4. “ T h e gove r n m e n t s h o u l d formulate corresponding policies to encourage them,” he said. “Meanwhile, other players involved in the telecom sector should also participate.” Wang Jianya, president of Nokia Shanghai Bell, is confident that China will pioneer 5G research and development before it is rolled out in the next few years.This in turn will help develop a standard blueprint across the sector. “The key issue for 5G is producing a unified global standard,” Wang said. A joint venture of Nokia Corp. and State-owned investment ﬁrm China Huaxin, Nokia Shanghai Bell has been promoting the commercialization of 5G with domestic telecom carriers. China Mobile Communications Corp., the world’s largest telecom carrier by subscribers, has stepped up efforts to develop 5G technology. It plans to launch a pre- commercial service in 2019 before launching a fully commercialized 5G network in 2020. “With the rapid development of 5G, internet of things (IoT) and big data,we are entering the digital era,” said Sha Yuejia, vice-president of China Mobile. “As intelligent manufacturing, smart transportation and health care become more popular, this will promote the economic momentum to achieve a new leap forward in our society,” Sha said. So far, the company has established more than 2.23 million base stations with more than 900 million mobile users and 200 million IoT connections. It has also worked on intelligent s o l u t i o n s c ove r i n g m o b i l e authentication, home security, smart cities and logistics. High-tech companies, such as Huawei Technologies Co. Ltd. and ZTE Corp., are also keen to help formulate 5G global standards and promote its commercial use. China is expected to become the world’s largest 5G market before 2025,according to a report released by GSMA Intelligence, a global mobile think tank, and the China Information and Communications Technology Academy. The report also forecasts that 5G connections here will reach 428 million by 2025. John Hoffman, CEO and director of GSMA, estimated that global telecom carriers will invest 3.3 trillion yuan ($499 billion) in mobile infrastructure by 2020. Up to 500 billion yuan will come from China. Rana Flowers (center), China representative of the United Nations Children’s Fund, visits a show for protecting children online during the World Internet Conference. ZOU HONG / CHINA DAILY safeguards where needed is recognized.” She cited as an example China’s proactive engagement with the WeProtect Global Alliance to end child sexual exploitation online, which “entails the development of a coordinated national response.” “Concrete actions are underway, and I am sure that as recommendations for changes to legislation, policy or practices are identified, action will follow,” she said. As the internet industry plays a crucial role in protecting young minds, UNICEF has been building a strategic partnership with Tencent, the tech company behind China’s most popular messaging tool, WeChat. Together, they will promote child rights and protection online through research and policy advocacy, industry coalition building and engagement, and public awareness and communication, according to Flowers. “ U N I C E F i s a l so p rov i d i n g technical assistance and a child rights perspective to Tencent’s policies, processes and practical tools on child online safety,” she said. “Our goal is to extend this engagement to all Chinese technology companies, to have a systemwide protection for children.” China is expected to become the world’s largest 5G market before 2025, according to a report released by GSMA Intelligence. PROVIDED TO CHINA DAILY E-commerce Shoppers Embrace Smart Apps By HE WEI Chinese e-retailers are using artificial intelligence or AI to enhance and redefine the entire shopping experience for the consumer. In doing so,they are dispelling the notion that the new-age technology is all about driverless cars,futuristic robots and supercomputers such as the Alpha Go (that beat human players in a complex board game). For instance, Tencent Holdings Ltd., known for its WeChat and video game apps, is deploying AI to recommend products and services to users of its mobile walletWeChat Pay. Such users win virtual red packets containing real cash for offline purchases, which can be redeemed later in online shopping at partner sites. Ac c o rd i n g t o Re n Yu x i n , Tencent’s chief operating officer, the company is also empowering partner merchants to personalize their virtual storefronts for individual visitors. The idea is to offer real-time,tailor-made product recommendations based on a variety of factors like age, gender, location and purchasing power. Tencent has also teamed up with China’s second-largest online site JD.com, offering merchants customized content marketing opportunities via WeChat’s Moments, an information-sharing function, banking on algorithms that analyze a person’s interests, location and purchasing power. Alibaba Group Holding Ltd., the world’s largest e-commerce site by transaction volume,has embedded AI into its digital infrastructure, aiming to provide more precise search results and relevant product recommendations to users, and thus drive sales. The tech giant has developed a so-called “E-commerce Brain” to understand people’s needs and deliver relevant holistic recommendations. By adopting real-time online data to build models to predict what consumers want, the system generates recommendations for not only products they have shown an interest in but related products and other information. “Alibaba’s Brain can home in on a consumer’s predilections for certain products, price ranges, brands, product speciﬁcations and other key parameters,” said Zhao Binqiang, an algorithm expert at Alibaba who now leads the ﬁrm’s digital marketing unit. The software works in tandem with Alibaba’s vast social media networks. Algorithms allow the system to determine correlations between content consumption and purchasing behavior. For example, if a mother has purchased diapers via Alibaba’s Taobao site, she is likely to receive maternity and child-care related content from Weitao, a microblogging service for brands, or from Taobao Headlines, a sister newsfeed. Via such online destinations, she might receive sponsored content on products s u c h a s i n fa n t fo r m u l a o r supplements. Alibaba also introduced an AI-powered electronic assistant or chatbot called Ali Xiaomi (Ali Assistant) to handle up to 95% of general inquiries ranging from refunds to complaints. According to Alibaba, the chatbot, when provided with a text or voice description or even a photo, can even help users find products, returning a list of recommendations that they could filter by brand, color and other characteristics. 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. B10D | Wednesday, December 13, 2017 PAID ADVERTISEMENT 4 | Life CHINA DAILY L From left: Jesuit missionaries to China Johann Adam Schall von Bell (Germany), Matteo Ricci (Italy) and Ferdinand Verbiest (Belgium). PHOTOS PROVIDED TO CHINA DAILY MEN ON A MISSION ly . Jesuits who arrived in China over the centuries to preach the gospel left an indelible mark on the country. Zhao Xu reports eyed by powerful foes and who may have felt he needed heaven’s help more than ever before, must have experiencedmomentsofamazement and profound lamentation. Seven decades later, when the French Jesuit missionaries including PierreJartouxandGuillaumeBonjourFavre traveled all over what was then the Empire of Qing (1644-1911), working on the most comprehensive and accurate map ever produced of the Middle Kingdom, they may still have had their predecessors in mind. However, the iconoclastic nature of their work, especially in areas that directly challenged the conventional Chinese view of the cosmos, made themtargets for attack,often by court officialswhofeltthattheirownholdon the emperor’s imagination — and on power — was being undermined by these latecomers. Late in his life, the Qing court sentenced Schall von Bell to death. This was after the death of Emperor Shunzhi (1638-1661), father of Kangxi, who died at the young age of 23 and whose respect for Schall von Bell’s counsel was such that he called the old man “mafa,” or grandpa. The sentence was never carried out. An earthquake in Beijing sent an alarm to the powerful Empress Dowager Xiaozhuang, mother of Shunzhi and grandmother of Kangxi, who intervened on Schall von Bell’s behalf. “The incident that ultimately led to Schall von Bell’s death, soon after, in 1666, is believed to have had a lot to do with the intense power struggle triggered by the death of Emperor Shunzhi ﬁve years earlier,” Li said. “A few years later, Schall von Bell saw a posthumous restoration of fame, partly thanks to his peer Ferdinand Verbiest, who was triumphant in a showdown with the Chinese scholar and astronomer Yang Guangxian, and partly because of a change of the political climate at court.” The contest, in which the two sides were required to predict the length of the sun’s shadow at midday, went ahead at the order of Emperor Kangxi. Verbiest’s win heralded a 200year period during which Western missionaries in effect controlled what was known as the Qing Empire’s Astro-Calendric Bureau. Whilethe74-year-oldSchallvonBell was in prison,Verbiest was at his side. He still is today,since the tombstones of the pair are separated only by Ricci’s. Almost without exception, the tops of the tombstones are occupied by two writhing dragons, the symbol of royalpower.Justbelow,asifprotected by the ferocious animals, is a cross. co Fo m rp m e er rs ci on al a us l, e on i Xiumei loves snow. “It purifies and silences everything, especially in this part of the campus,” said the associate law professor at the Beijing Administration Institute. “After one snowy night I came here early in the morning to sink my footsteps into the spotless white sponge cake, footsteps that took me to a group of men that has occupied my imagination and much of my time for the past decade.” To be precise, it is repeat visits to the tombstones of these men that have kept Li in their thrall. These tombstones, standing quietly on a patch of land measuring about 250 square yards, are in tight formation. The intimacy is evocative, because centuries ago, when those to whom these monuments are dedicated arrived in China after months, or even years, at sea, they were essentially alone, with almost no one to turn to but themselves and their God. They were Jesuit missionaries who journeyed to China from Europe between the 16th and 19th centuries, and they had at least two things in common:undoubtedtalent,including personal and diplomatic skills, and unwavering dedication to spreading the gospel. “The Society of Jesus, a religious congregation of the Catholic Church whose members are known as Jesuits, was founded by Ignatius of Loyola, a nobleman from northern Spain, in the mid-16th century,” Li said. “More than 1,000 Jesuits, not to mention other missionaries who had come under different banners within the Catholic Church, came to China. But most of those buried here are either the forerunners of the Jesuit mission or its most active members.” Of all the 63 gravestones on the campus, three stand relatively apart, on a lot separated with the rest by a low wall. Their prominent position is indicated by the symbolic earth mounds behind each monument. “The middle one belongs to Matteo Ricci,the Italian believed to have been the ﬁrstJesuit to enter Beijing,” Li said. “To its left is that of Johann Adam Schall von Bell, a German whose eventful life mirrors the tumults of his time; and to its right is that of Ferdinand Verbiest, a Belgian who became a de facto mentor for Kangxi, one of Chinese history’s greatest emperors and a contemporary of the Sun King of France. “They shared not only legends, myths and anecdotes, but also triumphs and travails, and here, their ﬁnal resting place.” Li Xiumei, associate law professor at the Beijing Administration Institute, on her repeat visits to the tombstones of the Jesuit missionaries. JIANG DONG / CHINA DAILY Zhang Xiping, a professor at Beijing Foreign Studies University, has spent most of his academic life researching theculturalexchangesbetweenChina andtheWestandhaspublishedbooks on the Jesuit mission in the country’s history. “From the very beginning they realized that in recruiting in the name of God they had to be very ﬂexible, to ‘become all things to all,’ to use the words of Loyola himself,” Zhang said. Ricci, the Italian who in the eyes of Emperor Kangxi set an example for all missionaries who wished to stay in China, understood these words. Having learned Chinese in Macao, he went on to live in Guangdong province, where Buddhism had a strong tradition, for more than a decade, before moving north to the cities of Nanchang and Nanjing, and ultimately to Beijing. “Before reaching Nanchang, where he would acquaint himself with members of the local literati, Ricci slipped out of his monk’s gown and into an official robe,” Zhang said. “If nothingelse,thisprovidesametaphor for his entire career in China, and for those who considered themselves his followers.” Theseattemptsatgainingattention were followed by signiﬁcant and often prolonged efforts, efforts aimed at “bringing down the arrogance of the Chinese and bringing them into God’s fold,” Li said. When Emperor Chongzhen (16111644), the last emperor of the Ming Dynasty (1368-1644) peered into the inﬁnity of the universe through a telescope in about 1641, with Schall von Bell at his side, the beleaguered man, whose vast empire was being Chinese TV Shows Win Foreign Fans no China’s rapidly developing television industry is offering ever more genres to overseas markets. Netflix has recently acquired an online Chinese detective drama series, Day and Night, and plans to distribute it in more than 190 markets around the world where its service is available, according to hollywoodreporter.com. Foreign buyers once had few choices with Chinese TV programs and they mainly focused on documentaries and animated productions, but now they are also paying attention to Chinese historically themed dramas. Yang Le, a distributor, has observed these changes over the past 10 years. When she was in Cannes to promote Chinese television dramas in 2006, she was disappointed with her first visit to MIPCOM, the world’s largest trade show for entertainment content held in the French city each October. Only a few Chinese companies were there, and they struggled to hold the attention of prospective foreign buyers. But Yang’s recent trip to Cannes for this year’s trade show, held from Oct. 16 to 19, was a pleasant surprise. More than 200 prospective foreign buyers visited her company’s exhibition area, which featured imperial-style costumes and ornaments used by lead characters in three upcomingTVseries: Zhao Ge, StoryofYanxiPalace and Untouchable Lovers. Zhao Ge, named after an ancient dynasty’s capital, is based on heroes and romances going back about 3,000 years; Story of Yanxi Palace is set in the reign of the 18th century Emperor Qianlong and chronicles the rise of a royal maid to be the ruler’s most loved concubine; and Untouchable Lovers is about a fake princess who is dragged into controversy in ﬁfth-century China. “The prospective buyers were not just interested in the stories, but also in the Chinese culture and history behind them,” said Yang, now chief executive of Dongyanghuanyu Film & Television Culture Co. Ltd. Besides the display of the props, a documentary on exquisite embroidery and ornament making n- By XU FAN was shown at the exhibition, attracting a lot of interest. This year more than 13,900 delegates and 4,800 buyers from more than 110 countries attended MIPCOM to market programs and formats for international distribution. More than 100 Chinese companies and agencies comprising 400 delegates attended. China has translated more than 1,600 domestic movies and television productions into 36 languages, including English, French, Russian, Spanish, Arabic and Portuguese, and they are being aired in more than 100 countries, the State Administration of Press, Publication, Radio, Film and Television said. China’s exports of TV series earned 510 million yuan ($77.2 million) last year, accounting for 68% of earnings from exported television content, the administration said. Yang Zheng, deputy director of the administration’s television regulation division, said Chinese television content has already earned a reputation around the world. China’s television industry has seen an improvement in its storytelling Chinese popular TV series are ﬁnding a ready market overseas. PROVIDED TO CHINA DAILY skills and filming techniques in recent years, paving the way for local producers to expand into overseas markets and seek collaboration with top players in the West,Yang said. In 2015 the series Empresses in the Palace was released in the United States and in 2016 Nirvana in Fire — a revenge story — was aired by mainstream broadcasters in Africa. Earlier this year, the drama The Journey of Flower was shown in the United Kingdom and France. Even as China is active in taking its small screen content to the rest of the world, potential buyers and industry watchers outside China have pointed to potential challenges. Anke Redl, founder of China Media Management Inc., the representative inBeijingofMIPevents,saidmostfans of Chinese television dramas abroad are limited to the Chinese community and Western audiences will get lost while following the same plots. Redl said stories coproduced by Chinese and Western teams, especially with professionals who understand both sides, will work with foreign audiences. CHINA DAILY, YOUR ESSENTIAL GUIDE NOW ON IPAPER KINDLE, NOOK AND SMARTEDITION TRY BEFORE YOU BUY A SELECT E-READER SMART EDITION 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. Wednesday, December 13, 2017 | B11 NY BUSINESS & FINANCE Saigon Beer Draws Thai Bidder SIT LIKE AN ASTRONAUT SINGAPORE—A Thai tycoon is looking to buy a quarter of Vietnam’s largest beer maker in a deal worth at least $2.25 billion, making his company the sole bidder for a substantial stake through a government auction. If successful, the bid by Charoen Sirivadhanabhakdi would mark one of the largest foreign investments in the Asian frontier market and could boost investor confidence in the communist government’s plans to reform its state-owned enterprises. Vietnam Beverage Co., a unit of Singapore-listed Thai Beverage PCL, has submitted a bid to acquire at least a 25% stake in state-owned Saigon Beer Alcohol Beverage Corp., known as Sabeco, according to Vietnam’s Ministry of Industry and Trade on Tuesday. In its statement, the ministry said that, as of Monday, Vietnam Beverage was the “one investor registered” to buy a large volume of Sabeco’s shares. Thai Beverage is owned by Mr. Charoen, one of Thailand’s richest men. The tycoon has been on an acquisition spree in recent years, buying stakes in companies ranging from hyper- Relieve Back Pain KHAM/REUTERS BY P.R. VENKAT Feel tension melt away in the zero gravity position! The state-owned brewer, which Hanoi aims to sell, controls about 40% of Vietnam’s beer market. New Highs and Lows | WSJ.com/newhighs 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. Tuesday, December 12, 2017 Highs Aflac Accenture AdtalemGlbEduc AlexandriaRlEst AllyFinancial Alteryx AmerEagle AmEqtyLf AmRltyInv AndinaAcqnIIRt ApolloMedical ArcBest arGEN-X ArmadaHoffler ArmstrongWorld AveryDennison BBVABancoFr BRT Apartments BankofAmWtA BankofAmWtB BankofAmerica BerkHathwy A BestBuy BlackRock BlueBuffaloPet Boeing BrookfieldMgt BrookfieldBusPtr CDK Global CF Industries CIT Group CONSOL Energy Calpine CambridgeBncp CanadaGoose Carters CboeGlobalMkts AFL ACN ATGE ARE ALLY AYX AEO AEL ARL ANDAR AMEH ARCB ARGX AHH AWI AVY BFR BRT BAC.WS.A BAC.WS.B BAC BRK.A BBY BLK BUFF BA BAM BBU CDK CF CIT CEIX CPN CATC GOOS CRI CBOE 89.15 152.80 45.20 131.72 29.32 28.69 17.92 32.54 14.22 1.33 18.44 38.75 57.39 15.75 60.60 115.56 23.40 11.20 17.49 2.20 29.50 299790 64.16 518.55 32.67 292.80 43.89 33.38 71.63 41.80 51.73 30.53 15.16 86.20 28.89 112.89 128.32 0.3 0.9 0.9 0.9 1.4 -1.4 -2.5 0.1 3.4 1.5 53.8 3.4 1.0 -0.1 -0.7 -0.5 2.5 0.2 2.2 12.2 1.3 1.1 -0.2 1.1 -0.8 2.4 1.0 -0.3 -0.8 3.0 0.9 1.1 0.1 4.7 ... 0.9 1.0 52-Wk % Sym Hi/Lo Chg Stock CiscoSystems CSCO Clorox CLX CoastwayBancorp CWAY CollectorsUniv CLCT ConcertPharm CNCE Copart CPRT Corning GLW CreditAcceptance CACC CreditSuisse CS Cutera CUTR DaVita DVA DigitalTurbine APPS DiscoverFinSvcs DFS DollarTree DLTR DominionEner D EPR PropPfdG EPRpG Ebix EBIX Ecopetrol EC EldoradoResorts ERI EmclaireFin EMCF EmergentBiosol EBS EntellusMedical ENTL Etsy ETSY EvercoreA EVR ExtraSpaceSt EXR FNBBancorp FNBG FactSet FDS Ferroglobe GSM FirstAmerFin FAF FirstCash FCFS FleetCorTech FLT Fortinet FTNT ForumMergerRt FMCIR FreseniusMed FMS FullHouse FLL GAMCO PfdA GNTpA GasLog GLOG GlMedREIT PfdA GMREpA GlycoMimetics GLYC Exchange-Traded Portfolios GoldmanSachs GrubHub GpoFinGalicia GpoSupervielle HVBancorp HoeghLNG PfdA HollyFrontier HoulihanLokey ICU Medical InteractiveBrkrs IssuerDirect KAR Auction KMG Chem KeyTechnology LKQ LPL Financial LRAD Leidos LifeStorage lululemon LyondellBasell MBFinPfdC Markel Maximus MedallionFinNts MercadoLibre Meredith MeridianBank Methanex MetropolitanBk MitsubishiUFJ MorganStanley Morningstar NationalVision NeptuneTech NevadaGold NewResidInvt NewtekBusSvcs NextEraEnergy GS GRUB GGAL SUPV HVBC HMLPpA HFC HLI ICUI IBKR ISDR KAR KMG KTEC LKQ LPLA LRAD LDOS LSI LULU LYB MBFIO MKL MMS MFINL MELI MDP MRBK MEOH MCB MTU MS MORN EYE NEPT UWN NRZ NEWT NEE 258.20 71.22 65.67 29.51 15.20 26.22 47.50 45.86 218.68 62.33 18.32 51.49 63.58 20.50 41.42 56.51 2.45 64.55 91.72 74.99 108.13 26.05 1124.48 71.30 25.51 298.80 72.25 21.37 56.45 50.16 7.24 54.10 96.22 35.82 2.20 2.86 18.15 19.22 159.40 3.0 -0.7 0.6 3.5 1.2 0.2 1.4 1.0 2.3 2.0 2.3 0.2 14.8 1.0 0.6 2.2 10.4 -0.2 ... 0.9 -0.5 0.3 0.3 0.1 ... 2.2 -0.8 9.3 4.9 4.6 2.8 2.0 1.4 0.5 3.3 0.6 0.2 1.0 -1.4 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg 18.49 -0.7 GreatPanthrSlvr GPL USDieselHeatingOil UHN 34.00 0.3 HeatBiologics HTBX UrbanOutfitters URBN 6.25 4.2 HugotonRoyalty HGT UTStarcom UTSI IPCI 113.73 1.0 Intellipharm Visa V INTX 22.15 6.4 Intersections ValeantPharm VRX NVIV 31.54 ... InVivoTherap Vodafone VOD JONE WellsFargo Wt WFC.WS 26.96 6.4 JonesEnergy 60.56 2.5 LegacyAcqnWt LGC.WS WellsFargo WFC TAX 64.87 -0.7 LibertyTax WestRock WRK 1.30 7.1 MaidenHldgsPfdC MHpC WillScotWt WSCWW 42.74 1.5 MaidenHldg6.7%PfdD MHpD Wingstop WING MDGS 31.00 -0.5 Medigus WW Ent WWE MCC 37.01 3.3 MedleyCapital ZayoGroup ZAYO MilestoneSci MLSS NaturalHlthTrends NHTC Netlist NLST 81.66 0.8 NeuroMetrixWt NUROW Amcon DIT 10.53 -2.4 Nevro ANGI Homesvcs ANGI NVRO 2.80 -1.0 NewSeniorInvt AchillionPharm ACHN SNR 1.20 -16.7 NightstarTherap NITE Affimed AFMD 10.02 1.9 Nxt-ID Wt AquinoxPharm AQXP NXTDW 0.18 -5.3 OnconovaTherap ONTX ArcadiaBiosci RKDA 12.00 -0.8 PCM Arsanis ASNS PCMI 0.47 -7.5 PatriotTransport PATI AsankoGold AKG 1.29 -1.5 PershingGold AurynResources AUG PGLC 1.45 -2.0 PetroQuestEner PQ BellatrixExplor BXE 10.67 -1.3 Pfenex CPFLEnergia CPL PFNX 2.52 -2.3 ProQR Therap CTI BioPharma CTIC PRQR 13.50 -0.9 Prothena Curo CURO PRTA 22.95 -1.3 Reed's Caesarstone CSTE REED 1.25 -3.8 RelivIntl CanFiteBiopharm CANF RELV 0.96 -7.7 ResearchFrontiers REFR Celgene Rt CELGZ 0.10 -28.4 RexEnergy CellectarBiosciWt CLRBW REXX 5.66 -0.9 RosettaGenmcs ROSG ChemoCentryx CCXI 0.31 -4.3 SandRidgePermian PER ComstockMining LODE 0.33 -5.1 SenesTech ContraVirPharm CTRV SNES 21.41 -1.2 SigmaLabsWt CoreCivic CXW SGLBW 0.24 0.8 SkylineMedical CytoriTherap CYTX SKLN 0.08 -35.0 Sphere3D DexteraSurgical DXTR ANY 15.51 -3.7 TanRoyExplr DuluthHoldings DLTH TRX 10.66 -0.4 TeleNav DynagasLNG DLNG TNAV 67.28 -6.0 TopImageSys EdisonInt EIX TISA 13.98 ... TurtleBeach 8x8 EGHT HEAR 14.75 -0.5 UltragenyxPharm RARE EllingtonFin EFC 3.37 -2.5 US NatGas Evogene EVGN UNG 0.61 -6.1 US12mthNtlGas UNL FibrocellScience FCSC 3.50 -8.8 UnvlTechInst ForwardPharma FWP UTI 4.63 -8.4 WideOpenWest WOW GNC Holdings GNC 11.64 -0.5 YogaWorks Goldcorp GG YOGA 1.06 0.30 1.35 0.75 1.90 0.72 0.75 0.45 10.70 23.66 21.53 1.31 5.38 0.91 16.77 0.25 0.02 65.00 7.62 13.52 0.08 1.32 9.40 17.23 2.55 1.55 2.08 2.75 37.77 1.30 3.72 0.86 1.50 0.58 2.50 0.71 0.21 1.05 1.90 0.24 4.50 1.02 0.46 43.38 5.32 8.84 2.50 8.64 2.25 0.9 10.1 -1.8 -4.9 -3.5 -14.4 -6.0 -11.8 -0.9 ... -0.7 -2.9 -0.6 3.7 -0.8 -5.2 -13.5 0.5 -0.7 -7.0 -0.6 2.2 -2.6 ... -8.2 -4.8 -4.1 -3.4 -5.2 -15.2 5.2 -2.2 -3.2 -0.7 -3.8 -1.5 ... -6.9 -18.4 -2.3 ... ... -6.8 -1.6 -3.6 -4.0 -1.5 0.2 -1.7 Lows 0.85 –14.8 0.04 19.8 9.4 0.02 –0.27 –7.6 1.00 21.4 0.01 16.1 0.40 21.4 0.11 19.9 1.0 –0.02 ... –0.3 –0.04 –0.1 0.13 22.6 –0.61 30.6 –0.21 23.4 0.15 19.4 –0.25 13.9 –0.24 10.3 0.11 18.9 1.0 –0.05 –0.42 11.5 0.17 18.8 0.04 17.0 7.9 0.17 3.2 –0.07 0.9 –0.05 4.8 0.03 0.1 –0.03 ... 21.5 0.13 21.4 –0.03 27.0 –0.67 31.0 –0.14 26.1 0.18 22.6 –0.44 19.6 2.1 –0.03 –0.01 28.0 0.17 19.3 0.27 10.8 –0.50 19.0 –0.31 11.9 5.7 –0.01 0.12 18.7 –0.23 15.7 –0.16 10.3 –0.17 18.0 0.03 25.5 0.34 12.5 3.1 –0.36 0.5 0.08 ... –0.6 0.9 –0.09 6.1 –0.04 –0.36 22.7 0.3 –0.03 –0.13 31.4 –0.35 15.4 ... –1.2 0.9 ... 7.8 0.12 0.12 24.1 0.11 18.9 0.16 19.6 0.52 24.3 –0.26 13.8 0.18 19.3 –0.10 12.7 –0.03 32.6 –1.71 13.8 2.4 –0.42 –0.25 35.8 9.2 –0.12 –0.37 19.0 –0.03 18.9 0.07 21.8 –0.72 23.3 0.09 22.1 0.87 19.2 –0.04 22.2 –0.02 25.9 0.35 22.7 0.23 13.3 1.1 –0.05 2.0 –0.07 0.18 19.7 –0.17 16.9 –0.05 14.1 2.3 0.49 0.17 19.4 –0.01 –0.3 0.1 –0.05 –0.31 13.5 0.9 –0.01 1.6 –0.11 –0.04 22.2 0.11 18.8 0.03 20.8 0.37 14.4 0.19 13.0 0.34 19.2 0.12 14.6 CAREERS CAREERS ; 00;, 2 0# ++0 ' ; 00;, . / $ -' % $- 2 % ' @ # ,1 21 2" >1 >1 A1 >1 2" % % 8 ! % 8 ! ; ; # ,1 8 ! / &% " B& $ -' B$-# ,1 8 ! / % %C C % % % % % C &' &# ' ' % " / $-C ' 00;, %%>' 6 "% 1% &C 2 A! 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Shipping • 90 Day Risk Free Return • Free Foot Massager ($350 value) FIRST CLASS TRAVEL FOR YOUR FEET To advertise: 800-366-3975 or WSJ.com/classiﬁeds Tuesday, December 12, 2017 Closing Chg YTD Symbol Price (%) (%) AMLP XLY XLP XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VBK VIG VEA VWO VGK VFH VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ DBEF 62.53 51.00 53.41 28.95 146.24 84.89 24.90 35.53 74.18 36.82 55.81 20.46 39.67 19.85 26.50 7.45 61.25 19.95 9.60 32.81 17.39 33.27 12.98 174.07 46.25 42.50 51.98 103.36 1.02 51.87 4.75 7.00 11.61 36.54 54.18 2.59 18.93 24.80 25.09 8.63 41.07 21.70 65.88 6.35 23.76 37.45 9.55 165.85 17.52 844-697-8246 Svagorelief.com 844-MY-SVAGO Career Opportunities Largest 100 exchange-traded funds, latest session ETF -0.1 0.1 -0.5 1.8 3.1 -0.5 0.2 1.2 0.3 4.7 1.3 6.5 1.0 -0.8 -0.8 0.3 -0.1 1.5 1.1 ... 3.1 0.7 1.4 1.0 ... 6.4 ... -4.2 -0.8 0.2 0.1 -0.1 1.0 0.7 -2.0 0.4 1.8 0.2 14.9 ADVERTISEMENT WSJ.com/ETFresearch AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFE iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500 iShCoreS&P MC iShCoreS&P SC iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCI ACWI iShMSCI EAFE iShMSCI EAFE SC iShMSCIEmgMarkets iShMSCIEurozone iShMSCIJapan iShNasdaqBiotech iShNatlMuniBd iShRussell1000Gwth iShRussell1000 iShRussell1000Val iShRussell2000Gwth iShRussell2000 iShRussell2000Val iShRussell3000 iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500Value iShUSPfdStk iShTIPSBondETF 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 38.10 145.69 21.30 29.78 26.92 44.35 32.82 327.48 17.53 47.40 70.58 1.95 75.51 109.00 84.84 24.75 78.40 12.71 33.70 31.93 45.81 24.75 20.25 90.90 88.40 38.79 206.66 17.61 56.83 68.50 191.00 42.59 0.72 51.98 4.10 25.24 19.45 25.80 18.25 52-Wk % Sym Hi/Lo Chg n- Stock 52-Wk % Sym Hi/Lo Chg Stock Nike NKE NortelInversora NTL NovoNordisk NVO Oppenheimer A OPY PNC Fin PNC PRA HealthSci PRAH PSBusParksPfdY PSBpY PeabodyEnergy BTU PeabodyEnerPfdA BTUp Pfizer PFE Progressive PGR ProPetro PUMP QuantaServices PWR Quanterix QTRX RBB Bancorp RBB RCM Tech RCMT RMR Group RMR RayonierAdvMatls RYAM RedLionHotels RLH RedRockResorts RRR RegionsFin RF RiotBlockchain RIOT RosettaStone RST S&P Global SPGI SPX FLOW FLOW SS&C Tech SSNC SchwabC SCHW ScottsMiracleGro SMG SecondSightWt EYESW SensataTech ST SiebertFin SIEB SigmaDesigns SIGM Sigmatron SGMA SkechersUSA SKX SkyWest SKYW SmithMicro SMSI SolarisOilfield SOI SpiritRealtyPfdA SRCpA Stoneridge SRI SumitomoMits SMFG SunLifeFinancial SLF SunTrustBanksWtB STI.WS.B SunTrustBanks STI TelInstrElec TIK TransportadGas TGS TrinityIndustries TRN USA Tech USAT UnitedRentals URI USBrentOilFd BNO Co. and Asahi Group Holdings Ltd., have shown interest in buying a chunk of Sabeco, people familiar with the process had said earlier. Kirin and Asahi declined to comment on whether they had submitted a bid for Sabeco. Vietnam, which has a population of more than 90 million, is one of Asia’s fastest-growing economies; it is expected to grow more than 6% this year. Its stock market is one of the best performers in Asia, with the Ho Chi Minh Stock Index up about 38% this year. —Megumi Fujikawa in Tokyo contributed to this article. co Fo m rp m e er rs ci on al a us l, e on 52-Wk % Sym Hi/Lo Chg Stock beco, has been looking to shed most of its stake in the beer maker for more than three years. But it was only last month that the government started an auction process, offering to sell a 53.6% stake. It had set a base price of 320,000 Vietnamese dong ($14.06) a share. Sabeco has a market capitalization of about $9 billion, making it one of the biggest listed firms in the country. It sells beer brands including 333 and Saigon Beer and has about a 40% share of the nation’s beer market. Many foreign companies, including Japan’s Kirin Holdings ly . markets to milk producers. Thai Beverage owns the Chang Beer and Oishi green-tea brands in Thailand and has been looking to expand its business in Southeast Asia. In October, Mr. Charoen paid close to $700 million for a majority stake in Myanmar Distillery Company Group, that country’s largest spirits maker. Mr. Charoen’s Fraser & Neave Ltd. has also been aggressively buying into Vietnam’s largest milk producer, Vinamilk, or Vietnam Dairy Products JSC, and now owns a stake of nearly 20%. The Vietnamese government, which owns about 90% of Sa- ! ! ! " # $ % &''!$($#)$ '*+ ',-'#)' ***.' */0*12234415$ ! " # $ % % %&% " % ' %% # ( " % )*+ %& )" ,& -" . / , . % ' ' ' 0 % 0" % # ,1 21 % 3 !# ) % % $ # 4, ,5 263 789 :" ; <=" ># ?99?:# " # Professor of Finance Endicott College is accepting applications for the School of Business at the Beverly, MA campus. Must have extensive work exp in finance - e.g. inv banking, private equity, consulting, asset mgmt, etc - in a client facing position. College level teaching exp desirable. Masters in Finance, MBA with a concentration in Finance, CFA or preferably a PhD in Economics or Finance. Please send CV to: firstname.lastname@example.org !"# $ ! % &'((# ) # $ * + , - # ; D% $ 2 B $ # ' ; D% $ ' D% ' " " >1 & ?:9999G D% %' )0# )% H$) D% %' # ) 1 - "1 A1 0 % % = ! % 0 A1 # ) 1 = ! / ! D% )0 3 %% '% & / =99 )0C ! 8 " 002 %' &% 1 ; -! C ! % % C ! & " ' C $6$+&% # ) 1 3 ! /" ! %& ' &" # 6 "//## /&/ / "#" % 3?9?<<I E.& &F ' E " @&#F # AA Interested candidates send resume to: Google LLC., PO Box 26184 San Francisco, CA 94126 Attn: A. Johnson. Please reference job # below: HR Bus Partner (New York, NY) Assist w/ ops strategy & rep tools to meet bus needs. #1615.28270 Exp Incl: spreadsheets sw, data analysis tools, & Excel spreadsheets; HR sys & tools; impl of hum res prg & initiatives; proj mgmt; collab & inter w/ diverse tech & non-tech grps, spanning all org levels; global impl prj w/ intr stakeholder grps; op strategy; dev of an impl roadmap; action plan & quart rev; collab w/ sr exct on HR policy &strategy; analysis of HR data & trends & prov recomd for action based on that analysis; dev & exct HR strategy that meets corp obj; & pov prj mgmt of HR prog. Phelps County Regional Medical Center in Rolla , MO is looking for a General Cardiologist. Send CV to Beth Hedrick email@example.com H) 6 " +% 2 B $ # ' H )% 6 " +% "% #A6/05 % % ; $ @ / B& D" 2 &# ,1 - "1 0 A1 0 % % = ! % = ! A1 )1 $6 2 0 # ,1 = ! / ' 05 D& C D0>C *+ 899=899:C . C .*C 462+ 1C 05C % % % & &% /& '% %& " -8 2*+ C % % C ' @ +0C ($ 2%% 6 %&# ,1 3 ! / ' J2+C H 89?9/89?8/89?=C .C D&;C 4"0"C #A6 3#=/<#9C 6 C 3% ($ 6' 0; $ # ,1 8 ! / ' ; ?C 3C ( 6 2* K .# ,1 ? ! / ' H 0 B 6C BC ; 8 "/D)># 6 "//## / &/ / "#" % 3?9?3<9 E.& &F ' E " @&#F # AA# A ' # A " % %1# % # # ,# 21 0# ;# 0# $6# A# # % G 3 # !# @& % ;# # D # . # $6 0 # # , - "1 0# ;# 0# $6# A# # % G = # !# @& % ;# # D # . # $6 0 # # ,# 3 # !# / # 1# "" " @# C % % %& / $ #C 0 .C .8AA .-0C .2C 2H0 # ,# 8 # !# / ,A6 ;) &% # . J2+ C . 2 'C 4& 2-# ,# ? # !# / -8 2*+C ; " 6 C +! ($J C 0 & "C 2 ;C %# 6 "// #@ "# @& 5?I9???:7L# AA ;;A 2/>//H# .)2 0" 0# ; " %# #@ "# Travel tip: comfortable feet make everything more fun. The Un-Sneaker combines the comfort of a sneaker with the style of a shoe. Travel well! Free shipping and returns. Order online or call 844.482.4800. 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 | Wednesday, December 13, 2017 * * THE WALL STREET JOURNAL. THE PROPERTY REPORT JPMorgan Data Firms Lace Up Gloves Developer, Seek Groupon Building BY PETER GRANT pected revenue, according to company executives and regulatory filings. This fall, Xceligent Chief Executive and cofounder Douglas Curry and his wife, Erin Curry, the firm’s chief people officer, stepped down. Meanwhile, CoStar’s fortunes have soared. The company’s shares are trading above $290 a share, up from about $190 at the beginning of the year. CoStar has long stayed out in front of Xceligent partly because it got into the business first. CoStar Chief Executive Andrew Florance founded the company in 1987, more than a decade before Mr. Curry cofounded Xceligent. CoStar’s Mr. Florance also has been a tough player in the legal and public relations arena. Between 1999 and 2009, CoStar sued LoopNet three times and was sued by LoopNet twice before the two merged. All the lawsuits were settled out of court or dismissed. In its fight against Xceligent, CoStar timed its lawsuit with the execution of a searchand-seizure order issued by a regional trial court in the Philippines that was requested by CoStar. That order authorized CoStar to seize data in offices of Avion BPO Corp., a Filipino company that has been a contractor to Xceligent. This fall, just before Mr. stepped down shortly after the injunction was announced. Daily Mail said the departures had nothing to do with the legal dispute. On the public relations front, CoStar has sent numerous executives in the real-estate industry packages of documents on Avion and Xceligent, pointing out that another Avion client is Backpage.com, an online marketplace. The documents called attention to a report by the U.S. Senate Permanent Subcommittee on Investigations that said Backpage.com was involved in the “knowing facilitation of online sex trafficking.” Xceligent executives have said they had no knowledge of Avion’s other clients. An Avion executive declined to comment. Backpage declined to comment. In the past, Backpage has said it has long collaborated with law enforcement to prevent people from using the internet to commit crimes. Meanwhile, CoStar faces some challenges. This fall, the Federal Trade Commission requested additional information about CoStar’s plans to acquire ForRent, a Norfolk, Va.based company that is active in the apartment-rental business and similar to CoStar’s Apartments.com business. The action was disclosed by CoStar. An FTC spokeswoman declined to comment. ly . CoStar sued Xceligent alleging data theft. Xceligent countersued, charging it with antitrust practices. co Fo m rp m e er rs ci on al a us l, e on CoStar Group Inc. and Xceligent Inc., two of the world’s largest providers of commercial real-estate data, have gone back to the mattresses. Last week, the two rivals were just days away from announcing a settlement in a yearlong legal battle over alleged data theft, according to people familiar with the matter. But the deal has collapsed, and lawyers are gearing up for another round of depositions and filings, the people said. The breakdown was partly over CoStar’s insistence that Xceligent agree to steps that CoStar claims are necessary to protect its data in the future, the people said. Among the steps CoStar wants would be deletions of certain material in Xceligent’s database, the people said. The fight is being followed in the real-estate industry, which relies heavily on CoStar and Xceligent for critical market data like commercial property occupancy levels, tenants and rents. Large brokerage firms, lenders, owners and other businesses can pay hundreds of thousands of dollars a year for these services. The Federal Trade Commission could play a role as well. The regulator in 2012 put the brakes on CoStar’s $860 million acquisition of LoopNet Inc., another data firm, until CoStar agreed that the merged companies would sell LoopNet’s large stake in Xceligent. The FTC said at the time that requirement “preserves competition that otherwise would have been lost.” CoStar, the larger of the two companies with a market capitalization of more than $10.6 billion, fired the first shot in the legal battle when it sued Xceligent in federal court in Kansas City, Mo., last year alleging data theft. Xceligent countersued, charging CoStar with antitrust practices. Both sides have denied each other’s allegations. Apart from the lawsuit, Xceligent has been suffering severe business challenges. Daily Mail & General Trust PLC, which acquired the Xceligent stake from the combined CoStar and LoopNet, has written its value down to zero, in part because of lower-than-ex- COSTAR GROUP BY PETER GRANT A venture of one of Chicago’s most active real-estate developers and JPMorgan Asset Management are in advanced talks to buy Groupon Inc.’s headquarters for about $520 million from Sam Zell’s Equity Commonwealth, according to people familiar with the matter. The purchase by Sterling Bay and JPMorgan would be the latest sign that buildings with big floors are attractive to investors as well as technology companies. The 1.6-million-square-foot building at 600 W. Chicago Ave. was once a Montgomery Ward warehouse and is known for its floors that are 260,000 square feet each, the size of a small office tower. The deal also marks the latest chapter in the closely watched real-estate career of Mr. Zell, who is chairman of and a large shareholder in Equity Commonwealth, a Chicago-based real-estate investment trust. Mr. Zell is known for selling his office building company, Equity Office Properties, just before the 2008 financial crisis. Lately, Mr. Zell has been a seller again. Speaking at a real-estate conference last year, he warned that the longrunning bull market in commercial real estate was nearing an end. “If somebody needs a bell ringing to figure out that the real-estate market is pretty frothy right now, then I’m in the business of selling hearing aids,” he said. Others, however, continue to be bullish in their outlook on commercial real estate. Optimists have pointed out that interest rates remain low and economic growth continues to ADVERTISEMENT Curry resigned, a different Xceligent contractor with ties to India agreed to a stipulation in a lawsuit that CoStar filed against it in Pittsburgh federal court. The contractor, RE BackOffice, agreed that its operations team “used measures to circumvent CoStar’s security measures and thereby hack into CoStar,” according to court papers. After the Pittsburgh judgment, Xceligent denied it instructed any vendor to conduct illegal activity. “RE BackOffice simply chose to settle rather than fight an industry giant like CoStar,” Xceligent said. Mr. Curry and his wife boost rents. Commonwealth hired Eastdil Secured to sell 600 W. Chicago Ave. earlier this year. Sterling Bay’s other projects include a new headquarters for McDonald’s Corp., which is returning to the city after more than four years in the suburbs. Sterling Bay also purchased the old A. Finkl & Sons Steel plant on the North Branch of the Chicago River. The developer is planning to convert the 22-acre former plant site into $7 billion to $8 billion of office, retail and residential projects. The Sterling Bay and JPMorgan venture hasn’t yet signed a contract to purchase 600 W. Chicago, and the deal could still collapse. Buildings with big floors are popular with tech companies that like open seating, high ceilings, lounges and a lot of other amenities for young and creative workers. Another example is Google Inc.’s New York headquarters at 111 Eighth Ave., a 2.9-million-square-foot building in Chelsea. Google purchased the property for $1.9 billion in 2010. Nicknamed the “grave dancer,” Mr. Zell made a fortune buying discounted assets in the wake of the recession of the early 1990s. In 2007, he sold Equity Office for $39 billion in the largest leveraged buyout at the time. Mr. Zell got involved with Equity Commonwealth in 2014 when he was recruited by a group of activist investors who were trying to seize control of the company. Those investors also included Related Fund Management and Corvex Management LP. That takeover effort ultimately was successful. BRIAN MOLYNEAUX FOR THE WALL STREET JOURNAL CoStar and Xceligent prepare to continue legal battle as possible settlement is scrubbed The building was once a Montgomery Ward warehouse. n- Business Real Estate & Auctions To advertise: 800-366-3975 or WSJ.com/classiﬁeds % &! ! " # # $ $ $ $ INVESTMENT PROPERTIES ! " # $ % &'' ( ) * + , ' OHIO CALIFORNIA NEW YORK ! " #$ %& ' #( )% * * + ,, * ! " , * - #. $%& '( & NOTABLECOMMERCIALPROPERTIES (800) 366-3975 firstname.lastname@example.org For more information visit: wsj.com/classifieds © 2017 Dow Jones & Company, Inc. All Rights Reserved. ! "#$% &'( ) ''*+,' & #$ $( % &( *+ & MARK WILSON/GETTY IMAGES no AUCTIONS The Landmark Mall in Alexandria, Va., closed this year, as overbuilding has saturated the market. Mall Owners Look to Courts BY ESTHER FUNG When all else fails, sue. Decades of overbuilding have saddled property markets with too many malls as online shopping and changing consumer preferences are reshaping the retail sector. Now, landlords, tenants and investors are looking to the courts for relief. Friction between landlords and tenants usually centers on clauses that allow retailers to receive rent concessions if certain anchor tenants leave the mall or if occupancy levels fall below a certain threshold. A recent court ruling granting a preliminary injunction to prevent Starbucks Corp. from closing Teavana stores in 77 retail locations owned by mall landlord Simon Property Group Inc. is causing more tenants to scrutinize lease contracts as concerns mount that they could end up in the same boat. Some tenants, alarmed by the injunction, are demanding clauses in lease contracts that allow them to terminate early, said Corey Bialow, chief executive at Bialow Real Estate LLC, a firm that represents retail tenants. Court filings show that the landlord’s fear is that the departure of Teavana could result in a retail version of a bank run. “Each premature closure is viewed by tenants as an indication of a larger possible problem with the mall retail environment and emboldens other tenants to approach Simon and ask to close some or all of their stores,” according to court documents quoting testimony by Bruce Tobin, Simon’s senior executive vice president of leasing malls. Simon didn’t respond to requests for additional comment. Starbucks didn’t respond to requests for comment, but has said it was disappointed by the ruling. The uncertainty over occupancy and leasing success in malls, strip centers and other retail properties is also driving disputes between lenders and landlords. In particular, some owners of properties that are more highly leveraged and funded with riskier debt face a greater threat of their property getting repossessed by lenders if the owners are unable to meet their debt obligations. Activist investors also have been circling mall real-estate investment trusts, whose share prices have been sliding for the past year. Taubman Centers Inc. has spent roughly $12 million in legal and advisory services fees in the first nine months this year on activities related to a shareholder activist campaign launched by Jonathan Litt. Meanwhile, Paul Singer’s Elliott Management Corp., another firm known for agitating for change, recently took a stake in the luxury-mall operator. Taubman and Elliott declined to comment. Mr. Litt didn’t respond to requests for comment. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Wednesday, December 13, 2017 | B13 2 25325 84 /;5 3<5 2/535 3* 3/ ,1 3925 #$# % & 4# 1. 3 /" 2/ n- /& 0$ co Fo m rp m e er rs ci on al a us l, e on ly . 3 ,, 3 /& 0$ /& 0$ /0*1*+ %&) *+ ,* *. && no !"! -1 !+ / 8)(+! * 7.-. 2095 /& 0$ ' 5 ( . 6 2 5 /& 0$ "' ( 5%" 77 2 5 /& 0$ !'- ''"" * ! :+ % (( )( # (% ! %# +% !+"!+ ! % 222333445 ! " #$ !%$&&&' ( (%)" " *+ !) # ,-. .- 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. no n- co Fo m rp m e er rs ci on al a us l, e on ly . B14 | Wednesday, December 13, 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. Wednesday, December 13, 2017 | B15 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 24504.80 s 118.77, or 0.49% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.57 21.72 P/E estimate * 19.93 18.43 Dividend yield 2.15 2.38 All-time high 24504.80, 12/12/17 Nasdaq Composite Index Last 2664.11 s 4.12, or 0.15% 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: 2664.11, 12/12/17 Last Year ago 6862.32 t 12.76, or 0.19% 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 2700 6900 24000 2650 6750 23400 2600 6600 22800 2550 6450 22200 2500 6300 2450 6150 Session high UP Close t DOWN Session open Open t Close Session low 65-day moving average 65-day moving average 65-day moving average 21600 Bars measure the point change from session's open Oct. Nov. 6000 2400 21000 Sept. Sept. Dec. Oct. Nov. Sept. Dec. Oct. Nov. Dec. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. High Latest Close Low Net chg % chg High 52-Week Low % chg % chg 3-yr. ann. YTD Dow Jones 24552.97 24443.83 24504.80 118.77 Transportation Avg 10404.25 10346.20 10367.91 759.41 Utility Average 747.93 Nasdaq Stock Market Nasdaq Composite 6884.80 Nasdaq 100 6403.50 Standard & Poor's 500 Index 2669.72 6856.30 6371.69 24.78 -1.20 2659.78 2664.11 4.12 1891.65 929.28 1883.62 923.20 1883.94 923.35 -4.26 -1.97 Other Indexes Russell 2000 1525.11 1515.95 1516.12 -3.72 12717.08 12674.89 12697.78 Value Line NYSE Arca Biotech 557.81 555.24 4192.31 4133.93 548.99 545.60 547.91 4.31 107.77 106.33 107.33 1.16 76.99 76.45 76.90 -0.09 136.70 0.65 PHLX§ Semiconductor Cboe Volatility 138.20 136.36 1241.62 9.92 1232.20 9.21 -0.16 0.15 -0.21 5.5 774.47 645.05 13.5 13.4 7.8 27533.39 23276.73 708.56 600.24 16.6 16.0 18.3 16.7 9.8 10.4 5383.12 4863.62 2664.11 25.6 29.3 2238.83 1660.58 815.62 27.5 31.3 17.3 19.0 11.7 8.8 13.5 10.2 13.8 15.0 10.0 10.3 11.6 Volume, Advancers, Decliners Close Most-active issues in late trading Company Volume (000) Symbol Net chg 5.88 –0.08 –0.40 DJ Americas 637.75 Sao Paulo Bovespa 73813.53 S&P/TSX Comp 16114.03 S&P/BMV IPC 47699.04 Santiago IPSA 3817.79 0.59 1013.49 10.52 … 16.09 10.4 9.6 14.8 6.5 9.7 4.9 4304.77 3075.02 32.0 34.9 6.6 0.79 560.52 469.13 14.0 13.8 1.0 1.09 107.33 88.02 16.8 16.9 14.4 96.72 73.03 -5.3 -2.5 3.8 117.79 -29.0 -25.6 -11.2 894.28 37.7 9.14 -22.0 36.0 22.5 -29.3 -22.2 0.47 12697.78 11056.89 11.7 7.5 -0.12 -0.99 1345.24 13.0 192.66 1341.69 16.04 6.21 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 6013.20 Shanghai Composite 3280.81 Hang Seng 28793.88 S&P BSE Sensex 33227.99 Nikkei Stock Avg 22866.17 Straits Times 3465.54 Kospi 2461.00 Weighted 10443.28 YTD % chg 0.19 –0.02 –0.15 0.09 1.39 0.07 Closed 0.42 0.66 0.46 0.36 0.75 0.46 0.19 0.16 0.81 0.48 –0.18 0.30 0.50 0.63 0.25 14.90 –41.38 –1.25 –171.41 –0.59 –227.80 –0.68 –0.32 –72.56 0.15 5.09 –10.49 –0.42 –0.28 –29.81 no Stoxx Europe 600 Euro Stoxx Bel-20 CAC 40 DAX Tel Aviv FTSE MIB AEX RTS Index IBEX 35 SX All Share Swiss Market FTSE 100 Latest % chg 19.8 20.0 21.5 18.0 22.6 5.4 4.5 18.4 8.4 12.2 11.8 11.6 14.8 –0.5 18.2 14.4 –0.2 10.0 8.7 13.9 5.0 n- 2.58 1.79 14.39 40.36 59.88 2.72 36.34 4.46 5.53 –18.60 1.74 46.65 46.93 391.63 393.00 4033.58 5427.19 13183.53 1463.22 22727.32 552.87 1149.88 10288.30 581.01 9361.41 7500.41 EMEA Eurozone Belgium France Germany Israel Italy Netherlands Russia Spain Sweden Switzerland U.K. F Ford Motor 13,070.8 12.57 iShares Russell 2000 ETF IWM 6,327.9 151.03 VanEck Vectors Gold Miner GDX 3,905.4 21.42 -0.03 6.1 5.7 30.9 24.8 19.6 20.3 21.4 12.9 U.S. consumer rates Selected rates A consumer rate against its benchmark over the past year 5-year CDs -0.24 1.00 12.53 … unch. 21.42 6.67 … unch. 6.72 21.37 6.65 NiSource NI 2,898.3 26.39 … unch. 26.75 26.39 Pfizer PFE 2,859.5 36.74 0.16 0.44 36.76 35.80 Mondelez Intl Cl A MDLZ 2,676.6 42.80 -0.08 -0.19 42.88 42.79 Percentage gainers… Insmed INSM 8.8 32.57 2.96 10.00 32.57 29.61 Bill Barrett BBG 28.3 4.59 0.21 4.79 4.59 4.38 Pier 1 Imports PIR 8.5 5.70 0.24 4.40 5.70 5.46 Tel Instrument Elec TIK 5.9 3.65 0.15 4.29 3.70 3.40 Philip Morris Intl PM 428.7 111.17 3.87 3.61 111.17 107.30 ...And losers Nordic American Tankers NAT Fidelity Ntl Financial 194.9 3.08 -0.59 -16.08 3.67 3.04 41.3 34.51 -5.73 -14.23 40.50 34.51 FNF 51.5 135.23 -16.87 ACN Accenture Cl A British Amer Tobacco ADR BTI Proteostasis Therapeutics PTI Company Symbol Proteostasis Therapeutics Apollo Medical Holdings Tel Instrument Elec Payment Data Systems Riot Blockchain PTI Technical Communications Second Sight Medical Prod ShiftPixy Vital Therapies GlycoMimetics TCCO KMG Chemicals BSQUARE ENDRA Life Sciences Syros Pharmaceuticals Genco Shipping Trading KMG AMEH TIK PYDS RIOT EYES PIXY VTL GLYC BSQR NDRA SYRS GNK -11.09 152.32 135.23 11.3 62.38 -4.93 -7.32 67.30 62.38 636.7 5.75 -0.39 -6.35 6.15 5.36 6.14 16.67 3.50 2.91 28.20 3.79 161.28 5.83 53.79 1.20 52.17 0.59 25.43 5.12 22.18 6.10 2.35 2.49 5.70 16.45 1.10 0.35 0.36 0.75 2.13 63.34 5.10 4.06 9.52 13.51 8.15 0.60 0.47 1.07 1.50 High 52-Week Low % chg Symbol Oasis Petroleum Bank of America SPDR S&P 500 Finl Select Sector SPDR General Electric OAS VelocityShares 3x Lg Nat iShares MSCI Emg Markets AT&T Ford Motor Valeant Pharm Intl UGAZ BAC SPY XLF GE EEM T F VRX -44.0 156.5 -27.1 69.2 698.9 Yield10 Bioscience CASI Pharmaceuticals Peregrine Pharma Sphere 3D Oasis Petroleum YTEN 22.00 17.50 16.90 15.15 14.87 9.30 2.83 11.64 6.50 18.25 2.15 0.90 2.00 2.25 3.82 165.2 24.3 ... 18.8 172.4 OncoMed Pharmaceuticals Acer Therapeutics Global Blood Therapeutics Kosmos Energy Remark Holdings OMED 14.77 13.33 13.09 12.66 12.49 63.58 32.05 6.35 4.10 4.74 2.15 24.38 6.30 14.99 6.71 74.3 -16.4 ... -39.6 95.5 Avenue Therapeutics Diana Containerships VelocityShares 3x Lg Nat Casey's General Stores Social Reality Cl A ATXI Volume % chg from Latest Session (000) 65-day avg Close % chg 87,550 73,667 71,302 67,469 65,977 954.2 7.4 8.1 20.6 -10.7 8.33 -17.20 29.32 1.31 266.78 0.18 28.22 1.00 17.91 1.47 45,335 44,894 44,182 41,298 40,953 91.2 -12.9 23.8 16.4 189.7 5.80 -11.99 45.86 -0.67 38.10 3.25 12.60 0.16 21.87 6.42 52-Week High Low 16.73 6.69 29.50 21.77 267.32 222.73 28.33 22.00 32.38 17.46 52.49 47.93 43.03 13.27 22.15 5.68 33.94 32.55 10.47 8.31 Ally Bank New York, NY 2.35% 877-247-2559 Barclays Wilmington, DE 2.35% 888-720-8756 EverBank Jacksonville, FL 2.35% 855-228-6755 Home Savings Bank Salt Lake City, UT 2.35% 801-487-0811 M.Y. Safra Bank, FSB New York, NY 2.36% 212-652-7200 10% 0 1.50 One year ago 0.75 –5 1 2 3 5 710 years maturity Euro 5 2.25 0.00 1 3 6 month(s) s Yen –10 s WSJ Dollar index –15 30 2017 t 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 1.52 1.57 Money market, annual yield 0.34 0.34 Five-year CD, annual yield 1.49 1.49 30-year mortgage, fixed† 3.92 3.88 15-year mortgage, fixed† 3.36 3.30 Jumbo mortgages, $424,100-plus† 4.29 4.30 Five-year adj mortgage (ARM)† 3.71 3.72 New-car loan, 48-month 3.20 3.31 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 1.57 0.36 1.49 4.33 3.50 4.88 4.03 3.74 1.00 1.00 1.33 -0.09 -0.03 0.03 0.19 0.05 0.44 0.15 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 1459.978 2.242 2.215 2.242 1.818 3.089 1.391 10-yr Treasury, Ryan ALM 1728.549 DJ Corporate 380.742 Aggregate, Barclays Capital 1941.250 High Yield 100, Merrill Lynch 2860.206 Fixed-Rate MBS, Barclays 1985.630 Muni Master, Merrill 520.511 2.403 3.149 2.710 5.564 2.920 2.176 2.356 3.135 2.690 5.510 2.900 2.145 2.609 3.390 2.790 5.890 3.120 2.419 2.058 2.879 2.380 4.948 2.660 1.736 2.968 6.337 3.786 6.775 2.507 4.736 804.222 5.572 5.545 6.221 5.279 9.599 7.368 Treasury, Ryan ALM EMBI Global, J.P. Morgan 0.978 3.693 2.122 5.220 1.814 2.385 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Latest Session Close Net chg % chg High 52-Week Low % chg 4.20 2.68 4.35 1.91 8.33 -1.33 -0.67 -1.00 -0.43 -1.73 -24.05 -20.00 -18.69 -18.38 -17.20 9.30 4.84 5.78 14.00 16.73 1.82 0.91 1.97 1.90 6.69 ... 114.4 90.1 -84.1 -49.1 3.92 11.99 38.40 6.75 8.44 -0.72 -2.16 -6.38 -1.09 -1.32 -15.52 -15.27 -14.24 -13.90 -13.52 10.89 2.91 22.63 5.70 45.85 13.35 8.62 5.52 10.34 1.93 -50.1 25.9 125.9 15.0 136.4 4.23 -0.64 -13.14 8.58 3.50 5.17 -0.76 -12.82 188430.48 1.56 UGAZ 5.80 -0.79 -11.99 52.49 5.68 CASY 107.18 -14.07 -11.60 126.49 99.76 SRAX 5.31 -0.69 -11.50 7.95 1.11 ... -100.0 -84.8 -11.9 -21.9 CASI PPHM ANY OAS ACER GBT KOS MARK DCIX Ranked by change from 65-day average* Company Symbol Easterly Acquisition arGEN-X ADR SPDR Hlth Cr Eqp Riot Blockchain Reality Shares DIVS ETF EACQ Xtrackers MSCI Eurozone DLH Holdings First Tr Germ AlphaDEX Telecom Italia ADR RCM Techs DBEZ Country/currency ARGX XHE RIOT DIVY DLHC FGM TI.A RCMT Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 602 1,242 214 35,948 96 1861 1582 1364 1333 1290 10.10 55.00 65.00 28.20 26.52 0.00 0.97 0.08 22.18 0.25 11.85 9.25 57.39 17.33 67.11 49.55 33.27 3.02 26.95 24.22 143 155 111 485 144 1257 1185 1163 1156 1113 30.90 6.16 49.88 7.49 7.32 0.10 -0.32 -0.16 -0.53 6.09 31.50 26.35 6.83 4.10 50.65 35.29 8.45 6.27 7.45 4.51 US$vs, YTDchg Tues in US$ per US$ (%) Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets US$vs, YTDchg Tues in US$ per US$ (%) Country/currency Americas Europe Argentina peso .0577 17.3458 9.3 Brazil real .3024 3.3065 1.6 Canada dollar .7773 1.2866 –4.3 Chile peso .001529 654.10 –2.3 Ecuador US dollar 1 1 unch Mexico peso .0521 19.1776 –7.5 Uruguay peso .03452 28.9700 –1.3 Venezuela b. fuerte .096967 10.3128 3.2 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 .7558 1.3231 China yuan .1510 6.6216 Hong Kong dollar .1281 7.8069 India rupee .01549 64.551 Indonesia rupiah .0000738 13558 Japan yen .008807 113.54 Kazakhstan tenge .002988 334.72 Macau pataca .1244 8.0410 Malaysia ringgit .2451 4.0795 New Zealand dollar .6934 1.4422 Pakistan rupee .00914 109.455 Philippines peso .0198 50.428 Singapore dollar .7392 1.3528 South Korea won .0009150 1092.89 Sri Lanka rupee .0065317 153.10 Taiwan dollar .03332 30.016 Thailand baht .03067 32.610 Vietnam dong .00004403 22714 Commodities –4.7 –4.7 0.7 –5.0 0.2 –3.0 0.3 1.6 –9.1 –0.1 4.9 1.7 –6.5 –9.5 3.1 –7.5 –8.9 –0.3 .04581 21.827 –15.0 .1578 6.3381 –10.3 1.1743 .8516 –10.4 .003740 267.41 –9.1 .009515 105.10 –7.0 .1198 8.3455 –3.5 .2789 3.5856 –14.4 .01688 59.227 –3.3 .1188 8.4209 –7.5 1.0084 .9917 –2.7 .2599 3.8476 9.2 .0368 27.1509 0.3 1.3317 .7509 –7.3 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6518 .3771 –0.02 .0560 17.8545 –1.5 .2819 3.5475 –7.8 3.3096 .3022 –1.1 2.5970 .3851 0.02 .2724 3.672 0.9 .2666 3.7505 –0.01 .0731 13.6747 –0.1 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.39 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 0.07 0.08 –5.97 Sources: Tullett Prebon, WSJ Market Data Group COMMODITIES Tuesday 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 3.00 t NYSE Arca Currencies Forex Race 3.75% Tuesday Nasdaq Total volume*1,835,564,342 230,227,318 Adv. volume* 791,990,466 114,878,271 Decl. volume*1,008,191,417 112,312,726 Issues traded 3,081 1,302 Advances 1,290 633 Declines 1,633 629 Unchanged 158 40 New highs 97 146 New lows 52 39 Closing tick 150 38 Closing Arms† 1.01 0.90 Block trades* 6,401 1,369 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days * Volumes of 100,000 shares or more are rounded to the nearest thousand 1.49% Symbol Volume Movers notes and bonds Bankrate.com avg†: Company 16.67 1.41 18.44 10.00 6.35 2.10 4.10 1.17 33.27 3.02 Most Active Stocks Company Total volume* 853,100,849 13,114,507 Adv. volume* 475,912,586 6,540,571 Decl. volume* 367,620,802 6,241,904 Issues traded 3,090 329 Advances 1,354 136 Declines 1,616 173 Unchanged 120 20 New highs 119 4 New lows 26 11 Closing tick 161 18 Closing Arms† 0.68 0.76 Block trades* 6,676 133 Percentage Losers t 0.50 –0.50 WSJ .COM 12.64 0.10 151.57 150.81 3,409.5 s 1.50% 0.00 Interest rate 0.15 Low 0.01 266.96 263.11 CLF Latest Session Close Net chg % chg Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, Consumer Rates and Returns to Investor J F MAM J J A S O N D 2017 After Hours % chg High Cleveland-Cliffs CREDIT MARKETS & CURRENCIES Federal-funds target rate Net chg 0.04 SPY Sources: SIX Financial Information; WSJ Market Data Group t Last 13,819.3 266.82 SPDR S&P 500 Percentage Gainers... 3031.61 391.30 259.96 The Global Dow DJ Global Index DJ Global ex U.S. Five-year CD yields NYSE NYSE Amer. Sources: SIX Financial Information; WSJ Market Data Group Region/Country Index Americas Brazil Canada Mexico Chile 14.6 503.24 -1.00 International Stock Indexes World 12.3 10.9 559.05 0.23 -0.24 Philadelphia Stock Exchange 24.0 8783.74 1544.14 -0.24 1233.18 -12.39 0.58 9.92 23.1 10402.51 1899.18 944.10 -0.23 4146.91 -42.03 24504.80 19732.40 6912.36 6422.56 -0.19 -1.33 NYSE Arca Pharma PHLX§ Oil Service -0.17 29.57 555.24 KBW Bank PHLX§ Gold/Silver 0.09 6862.32 -12.76 6383.65 -10.24 MidCap 400 SmallCap 600 NYSE Composite -0.03 748.31 -14.28 -1.87 27598.50 27509.39 27533.39 705.13 702.28 702.35 Total Stock Market Barron's 400 0.49 -2.92 Trading Diary Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares. co Fo m rp m e er rs ci on al a us l, e on Industrial Average Late Trading ly . Major U.S. Stock-Market Indexes 593.00 -6.10 183.41 57.14 2.678 1238.50 -2.08 -0.85 -0.150 -5.20 -1.02 616.58 532.01 -1.12 195.14 58.95 -1.47 3.93 -5.30 -0.42 1346.00 166.50 42.53 2.56 1127.80 % Chg 3.66 YTD % chg 4.54 -5.19 -4.73 6.37 7.85 -22.91 -28.09 7.70 7.07 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. B16 | Wednesday, December 13, 2017 COMMODITIES Open Metal & Petroleum Futures Contract High hi lo Low Open Settle Open Chg interest Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 2.9900 3.0005 2.9830 2.9995 0.0115 March'18 3.0145 3.0285 3.0005 3.0230 0.0115 Gold (CMX)-100 troy oz.; $ per troy oz. 1241.30 1244.40 1236.50 1238.50 –5.20 Dec Feb'18 1243.90 1247.90 1238.30 1241.70 –5.20 April 1248.00 1251.60 1242.70 1246.10 –5.20 June 1253.20 1256.60 1247.20 1250.40 –5.20 Aug 1258.20 1260.20 1251.90 1254.90 –5.20 Dec 1266.80 1268.10 1260.90 1264.00 –5.10 Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 1017.50 1020.05 1009.80 1015.70 3.60 March'18 1000.05 1003.50 991.60 1002.35 3.60 June 988.80 995.60 984.40 994.60 4.35 Platinum (NYM)-50 troy oz.; $ per troy oz. Dec ... ... ... 874.80 –17.10 Jan'18 887.40 891.00 t 873.10 875.70 –17.10 Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 15.665 15.700 15.555 15.582 –0.115 March'18 15.730 15.830 15.635 15.668 –0.117 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Jan 58.02 58.56 56.85 57.14 –0.85 Feb 58.11 58.60 56.89 57.16 –0.89 March 58.11 58.58 56.87 57.13 –0.91 April 58.02 58.52 56.83 57.08 –0.93 June 57.69 58.16 s 56.55 56.78 –0.94 Dec 55.95 56.27 54.86 55.11 –0.83 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.9520 1.9812 s 1.9223 1.9336 –.0170 Jan Feb 1.9559 1.9808 s 1.9228 1.9335 –.0173 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Jan 1.7266 1.7589 1.6911 1.6976 –.0290 Feb 1.7470 1.7725 1.7069 1.7129 –.0297 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Jan 2.801 2.844 t 2.673 2.678 –.150 Feb 2.818 2.861 t 2.692 2.694 –.153 March 2.790 2.830 t 2.668 2.670 –.146 April 2.700 2.733 t 2.609 2.614 –.108 May 2.704 2.733 t 2.616 2.620 –.103 Oct 2.800 2.817 t 2.715 2.719 –.094 2,676 139,420 2,194 344,282 28,015 36,873 11,021 15,771 34 32,816 1,159 3 60,948 827 161,208 312,042 380,008 334,530 166,306 245,511 266,934 107,540 93,645 107,219 84,530 286,431 242,140 246,024 150,327 121,369 81,825 Contract High hilo Low Settle Open interest Chg Dec March'18 Corn (CBT)-5,000 bu.; cents per bu. 336.50 340.75 t 335.25 335.75 Dec March'18 349.25 353.00 t 347.50 347.75 Oats (CBT)-5,000 bu.; cents per bu. ... ... ... 227.25 Dec March'18 244.00 245.50 240.25 243.50 Soybeans (CBT)-5,000 bu.; cents per bu. 981.75 986.25 975.00 975.75 Jan March 993.50 997.75 986.75 987.25 Soybean Meal (CBT)-100 tons; $ per ton. 326.30 326.30 322.30 322.90 Dec March'18 331.80 332.50 328.20 328.90 Soybean Oil (CBT)-60,000 lbs.; cents per lb. 33.33 33.55 33.17 33.36 Dec March'18 33.57 33.90 33.36 33.60 Rough Rice (CBT)-2,000 cwt.; $ per cwt. 1220.00 1229.50 1215.50 1226.00 Jan March 1250.00 1259.00 1246.00 1256.00 Wheat (CBT)-5,000 bu.; cents per bu. 386.50 387.25 t 386.50 387.25 Dec March'18 413.25 418.75 t 410.50 410.75 Wheat (KC)-5,000 bu.; cents per bu. 395.25 395.75 t 395.25 394.00 Dec March'18 413.00 419.50 410.75 411.25 Wheat (MPLS)-5,000 bu.; cents per bu. ... 596.75 596.75 596.75 Dec March'18 608.50 611.25 605.00 605.50 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 145.700 148.000 145.275 147.100 Jan March 143.600 146.100 143.250 145.300 Cattle-Live (CME)-40,000 lbs.; cents per lb. 115.225 117.300 115.200 116.150 Dec Feb'18 117.700 120.450 117.675 119.150 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 63.725 63.925 63.600 63.750 Dec Feb'18 66.900 67.050 66.475 66.525 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 425.70 427.40 422.50 423.50 Jan March 417.50 418.60 415.70 417.40 Milk (CME)-200,000 lbs., cents per lb. 15.64 15.65 15.60 15.60 Dec Jan'18 14.33 14.36 14.18 14.27 Cocoa (ICE-US)-10 metric tons; $ per ton. 1,856 1,884 1,856 1,872 Dec March'18 1,913 1,924 1,863 1,867 –.75 884 –1.25 842,726 –.25 –.25 11 5,099 –6.75 218,831 –6.75 224,532 –3.10 624 –2.90 153,895 –.04 107 –.01 163,340 4.00 4.00 –.50 94 –2.75 303,603 –1.25 58 –1.50 206,027 … –3.25 89 43,644 1.650 1.975 18,871 19,923 .975 10,853 1.425 134,321 .150 –.500 12,886 96,307 –6.40 –4.00 3,995 1,951 –.01 –.07 3,962 3,805 –45 40 –45 132,814 Tuesday, December 12, 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. Tuesday 0.9371 1.0196 2.820 2.790 5.650 2.400 2.620 2.260 2.650 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 Metals LBMA Platinum Price PM *884.0 Platinum,Engelhard industrial 886.0 Platinum,Engelhard fabricated 986.0 Palladium,Engelhard industrial 1011.0 Palladium,Engelhard fabricated 1111.0 Aluminum, LME, $ per metric ton *1991.5 Copper,Comex spot 2.9995 Iron Ore, 62% Fe CFR China-s 69.6 Shredded Scrap, US Midwest-s,w 307 Steel, HRC USA, FOB Midwest Mill-s 641 Food 1244.76 1338.12 1240.90 1377.40 *1251.40 *1247.15 1289.60 1302.00 1302.00 1503.07 1218.45 1302.00 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. 15.7000 18.8400 15.6350 19.5440 £11.8200 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 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 0.6175 0.7216 *84.20 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 4.85 110 3.1650 96.0 473.4 233 92 223 2.6850 390.00 25.00 7.9950 184.89 165.59 0.8568 2.2075 167.00 144.50 68.00 2132 1.1738 1.3787 1.7650 15.10 0.78 64.07 n.a. 0.8390 n.a. 165.50 Fats and Oils Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u Borrowing Benchmarks | WSJ.com/bonds Money Rates 34.0000 0.2300 0.3800 0.3245 0.2650 0.3200 December 12, 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 U.S. consumer price index International rates Latest Week ago 1.240 1.180 1.300 0.400 1.320 1.290 1.320 0.505 1.460 1.450 1.460 0.590 4 weeks 13 weeks 26 weeks 0.00 0.50 0.50 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.50 1.50 0.00 0.50 0.25 1.50 Overnight repurchase 1.20 1.06 U.S. 1.38 0.24 Week Latest ago Discount 1.75 1.75 1.00 1.1700 1.3125 1.0500 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 0.4200 0.5625 0.2500 0.4000 0.4200 1.75 Federal funds Effective rate High Low Bid Offer 1.1700 1.3125 1.0500 1.1600 1.1700 52-Week high low -0.403 -0.380 -0.315 -0.258 -0.376 -0.329 -0.223 -0.083 -0.411 -0.387 -0.322 -0.259 -0.369 -0.327 -0.271 -0.191 Latest -0.367 -0.326 -0.271 -0.191 Value Traded -0.366 -0.313 -0.216 -0.081 -0.375 -0.332 -0.276 -0.192 52-Week High Low DTCC GCF Repo Index Call money 3.00 3.00 3.00 1.114 1.133 Treasury MBS 2.25 Commercial paper (AA financial) 1.47 1.43 1.47 14.600 1.366 0.264 83.634 1.506 0.284 Open Implied Settle Change Interest Rate 0.72 Libor DTCC GCF Repo Index Futures One month Three month Six month U.S. government rates One month Three month Six month One year Other short-term rates 90 days -0.411 -0.386 -0.322 -0.257 Euro interbank offered rate (Euribor) 3.488 3.485 3.865 3.253 3.511 3.506 3.899 3.281 Policy Rates Euro zone Switzerland Britain Australia One month Three month Six month One year 30-year mortgage yields 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 121.00 117.05 –1.95 Contract High hilo Low Open Interest Rate Futures 1.47195 1.40319 1.47195 0.70389 1.57352 1.51532 1.57352 0.96344 1.74769 1.71125 1.74769 1.29822 Treasury Dec Treasury Jan Treasury Feb 98.690 unch. 2495 1.310 98.565 0.005 1486 1.435 98.555 -0.005 624 1.445 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. Settle Chg Japanese Yen (CME)-¥12,500,000; $ per 100¥ Dec March'18 .8809 .8857 .8823 .8871 .8793 .8841 .8806 –.0006 161,965 .8855 –.0005 83,274 Dec March'18 .7779 .7790 .7805 .7817 .7756 .7768 .7770 –.0012 123,476 .7782 –.0012 24,154 Dec March'18 1.3346 1.3388 1.3383 1.3429 1.3304 1.3353 1.3318 –.0025 145,870 1.3367 –.0022 55,437 Dec March'18 1.0085 1.0162 1.0115 1.0190 1.0068 1.0144 1.0081 –.0010 1.0156 –.0010 .7526 .7529 .7520 .7522 .7546 .7580 .7578 .7576 .7575 .7569 .7519 .7520 .7517 .7516 .7517 Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF Australian Dollar (CME)-AUD 100,000; $ per AUD Dec Jan'18 Feb March June .7558 .7558 .7556 .7554 .7554 Mexican Peso (CME)-MXN 500,000; $ per MXN Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Dec 154-050 154-050 153-100 153-250 –12.0 16,508 March'18 152-310 153-060 152-050 152-210 –12.0 761,747 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 124-155 124-180 124-085 124-115 –4.5 76,776 March'18 124-080 124-110 124-000 124-040 –4.5 3,201,109 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 116-175 116-180 116-132 116-152 –1.7 56,023 March'18 116-100 116-110 116-057 116-077 –2.0 2,925,310 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-097 107-100 107-085 107-097 –.2 30,500 March'18 107-040 107-042 107-022 107-035 –.5 1,723,266 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.708 98.708 98.705 98.708 … 117,512 Dec Jan'18 98.600 98.600 t 98.595 98.600 … 349,563 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 100.578 100.578 100.328 100.500 –.125 10,929 March'18 97.875 98.016 t 97.813 97.953 –.141 15,934 1 Month Libor (CME)-$3,000,000; pts of 100% Dec 98.4975 98.4975 t 98.4950 98.4950 –.0125 2,466 Jan'18 98.4850 98.4875 t 98.4850 98.4825 –.0050 4,060 Eurodollar (CME)-$1,000,000; pts of 100% Dec 98.3975 98.3975 98.3875 98.3875 –.0125 1,615,687 March'18 98.2300 98.2300 98.2150 98.2200 –.0100 1,511,080 June 98.0800 98.0800 98.0600 98.0700 –.0100 1,328,422 Dec 97.8950 97.8950 97.8700 97.8900 –.0100 1,688,669 Open interest Currency Futures 98 t 118.30 118.45 –1.55 124,236 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 13.99 14.04 13.70 13.77 –.18 396,718 May 13.91 13.96 13.64 13.69 –.18 157,164 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March 27.00 27.00 26.90 26.90 –.10 2,821 May 27.10 27.15 26.75 27.00 –.23 2,257 Cotton (ICE-US)-50,000 lbs.; cents per lb. March 72.86 74.19 72.76 72.91 –.09 168,927 May 73.46 74.74 73.36 73.50 –.08 44,594 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Jan 150.00 152.20 149.55 149.95 –1.05 4,930 March 151.00 152.00 149.90 150.25 –1.30 3,990 Dec .05244 .05244 March'18 .05165 .05168 Euro (CME)-€125,000; $ per € Dec 1.1777 1.1797 March'18 1.1849 1.1871 69,485 22,882 .0027 132,562 .0027 1,364 .0027 650 .0026 21,366 .0027 273 .05195 .05120 .05207 –.00040 136,023 .05130 –.00040 75,405 1.1722 1.1797 1.1742 –.0049 358,281 1.1818 –.0047 124,567 Index Futures Mini DJ Industrial Average (CBT)-$5 x index 24556 s 24575 s 24526 24543 125 124 72,199 96,482 Dec 2662.50 2669.70 s 2662.00 2665.10 March'18 2665.00 2673.00 s 2663.50 2667.80 Mini S&P 500 (CME)-$50 x index Dec 2662.75 2670.25 s 2660.50 2665.00 March'18 2666.00 2673.00 s 2663.25 2667.75 Mini S&P Midcap 400 (CME)-$100 x index Dec 1891.90 1892.50 1883.30 1883.70 March'18 1896.20 1897.70 1887.40 1887.90 Mini Nasdaq 100 (CME)-$20 x index Dec 6404.3 6407.8 6371.8 6384.3 March'18 6422.5 6426.3 6390.0 6403.0 Mini Russell 2000 (ICE-US)-$100 x index Dec 1527.30 1527.50 1515.10 1516.10 March'18 1527.00 1529.70 1518.30 1519.40 Mini Russell 1000 (ICE-US)-$100 x index Dec 1474.50 1478.60 s 1474.50 1475.70 March'18 1479.60 1480.30 s 1477.60 1477.40 U.S. Dollar Index (ICE-US)-$1,000 x index Dec 93.90 94.21 93.75 94.08 March'18 93.54 93.83 93.38 93.70 3.50 3.30 75,239 26,675 Dec March'18 24428 24460 24398 24416 S&P 500 Index (CME)-$250 x index 3.50 1,764,137 3.25 2,071,077 –4.30 –5.30 30,271 69,898 –13.3 186,840 –13.0 157,263 –6.20 –6.30 62,080 9,459 1.40 1.60 352 22 .24 .23 24,422 16,188 Source: SIX Financial Information Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return close YTD total return (%) Yield (%) Latest Low High Index 3.3 2787.40 Total return close YTD total return (%) Index 2.710 2.380 2.790 U.S. Aggregate 1985.63 1951.43 2.3 Mortgage-Backed 1.7 Ginnie Mae (GNMA) 2.880 2.630 3.090 2.5 Fannie mae (FNMA) 2.930 2.670 3.120 2.6 Freddie Mac (FHLMC) 2.950 2.680 3.130 3.260 3.030 3.520 1164.88 Intermediate 2.880 2.530 3.010 1793.76 10.8 Long term 4.080 4.030 4.710 520.51 4.3 Muni Master 2.176 1.736 2.419 4.2 Double-A-rated 2.720 2.470 2.870 363.85 4.7 7-12 year 2.217 1.744 2.516 3.570 3.340 3.870 409.47 6.1 12-22 year 2.516 2.213 2.923 397.33 7.1 22-plus year 2.885 2.716 3.508 3.7 3895.31 567.80 6.5 Triple-B-rated High Yield Bonds Merrill Lynch 7.4 417.24 2.920 2.660 3.120 U.S. Corporate 5.9 2616.89 719.96 Yield (%) Latest Low High Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 1941.25 High Yield Constrained 5.758 5.373 6.293 Global Government J.P. Morgan† Triple-C-rated 10.674 9.584 11.642 545.56 1.6 Global Government 1.410 1.300 1.560 2860.21 6.6 High Yield 100 5.564 4.948 5.890 760.89 1.0 Canada 1.950 1.570 2.190 378.64 7.5 Global High Yield Constrained 5.230 4.934 5.939 374.82 1.6 EMU§ 0.985 0.933 1.363 306.32 6.7 Europe High Yield Constrained 2.414 1.897 3.433 718.78 1.7 France 0.720 0.690 1.210 Germany 0.390 0.210 0.620 Japan 0.390 0.340 0.460 Netherlands 0.500 0.360 0.760 U.K. 1.550 1.340 1.790 8.9 418.85 511.87 U.S Agency Bloomberg Barclays 1637.37 2.0 U.S Agency 2.170 1.690 2.170 288.61 1462.37 1.1 10-20 years 2.030 1.490 2.030 565.82 20-plus years 2.940 2.730 3.460 926.19 2.950 2.610 3.090 804.22 8.1 4.9 Yankee 2459.28 -0.5 0.2 -0.1 1.4 8.8 Emerging Markets ** 5.572 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 Global Government Bonds: Mapping Yields Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years 1.750 2.250 0.500 0.050 2.050 0.100 2.750 1.450 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago 1.823 2.392 1.641 2.397 1.145 2.472 1.833 s 2.531 t l 1.832 1.807 1.803 1.4 0.9 l 2.567 2.607 2.866 13.1 17.5 39.4 France 2 -0.588 s 10 0.642 s l -0.595 -0.582 -241.8 -178.7 l 0.621 0.623 -177.1 -159.3 Germany 2 -0.731 t 10 0.316 s l -0.730 -0.751 l 0.298 Italy 2 -0.317 s 10 1.705 s l l Japan 2 -0.152 t 10 0.045 t 10 0.750 Year ago l Australia 2 0.000 Month ago l 2.750 0.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous U.S. 2 1.819 t 10 2.400 s 2.750 0.100 Euro Libor Secondary market 30 days 60 days —52-WEEK— High Low 2.02825 1.98950 2.02825 1.65400 One year Fannie Mae 52-Week High Low Prime rates U.S. Canada Japan 2.0 1.8 Week Latest ago no –0.06 0.28 246.663 253.638 All items Core Treasury bill auction —52-WEEK— High Low n- Chg From (%) Sept. '17 Oct. '16 121.00 121.35 3379.14 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 12/11 Source: WSJ Market Data Group Oct. index level Open interest U.S. Corporate Indexes Bloomberg Barclays 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 Fibers and Textiles Gold, per troy oz 320.20 9.4150 7.3550 4.1400 3.9425 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 Other metals Chg co Fo m rp m e er rs ci on al a us l, e on Energy Tuesday 15.7800 11824 121.00 120.60 5,979 3,877 Cash Prices | WSJ.com/commodities (U.S.$ equivalent) Coins,wholesale $1,000 face-a Settle Coffee (ICE-US)-37,500 lbs.; cents per lb. Agriculture Futures Tuesday Contract High hilo Low Open ly . Futures Contracts WSJ.com/commodities -0.641 -240.7 0.879 -175.7 65.8 -255.3 -188.8 0.381 -0.743 -255.0 0.400 -208.4 -209.5 -207.2 -0.341 -0.204 -0.110 -213.6 -216.4 -125.5 1.653 1.814 1.999 -69.5 -73.9 -47.3 l -0.150 -0.199 -0.191 -197.3 -133.6 l 0.051 0.029 -234.2 -239.7 Spain 2 -0.371 t 10 1.458 s l -0.370 -0.321 -0.274 -219.0 -219.3 -141.9 l 1.405 1.536 1.510 -94.2 -98.8 -96.2 0.470 t 1.225 s l 0.473 0.475 0.125 -135.0 -102.0 l 1.206 1.265 1.331 -118.6 -114.1 1.750 U.K. 2 4.250 10 -197.1 0.075 -235.5 -134.9 -117.5 Source: Tullett Prebon Corporate Debt in that same company’s share price. Investment-grade spreads that tightened the most… Issuer Symbol Coupon (%) Morgan Stanley Arrow Electronics 21St Century Fox America Macy's Retail Holdings Bank of New York Mellon Anheuser–Busch Inbev Worldwide Applied Materials General Electric MS ARW FOXA M BK ABIBB AMAT GE 5.450 6.000 4.950 7.000 2.450 5.375 5.100 5.000 Maturity July 15, ’49 April 1, ’20 Oct. 15, ’45 Feb. 15, ’28 Nov. 27, ’20 Jan. 15, ’20 Oct. 1, ’35 Jan. 21, ’49 Current 86 77 120 365 30 24 71 120 Spread*, in basis points One-day change –17 –11 –10 –10 –9 –8 –7 –7 Last week Stock Performance Close ($) % chg 61 n.a. 130 n.a. n.a. 30 n.a. 127 53.85 78.36 … … 54.97 ... 50.47 17.91 2.05 0.08 … … 0.79 ... –2.23 1.47 53 357 n.a. n.a. 307 n.a. 63 260 106.85 33.95 12.60 ... … 51.02 … 28.62 1.16 –0.73 0.16 ... … 0.45 … –0.80 …And spreads that widened the most JPMorgan Chase Viacom Ford Motor ING Bank Nl* Teva Pharmaceutical Finance Netherlands III Harley–Davidson Enterprise Products Operating Murphy Oil JPM VIA F INTNED TEVA HOG EPD MUR 7.900 5.875 9.980 4.125 3.150 3.500 4.050 6.875 April 30, ’49 Feb. 28, ’57 Feb. 15, ’47 Nov. 21, ’23 Oct. 1, ’26 July 28, ’25 Feb. 15, ’22 Aug. 15, ’24 66 394 290 n.a. 301 78 68 283 22 22 13 12 11 9 8 8 High-yield issues with the biggest price increases… Dividend Changes Dividend announcements from December 12. Company Symbol Amount Yld % New/Old Frq Payable / Record Increased 4.65% Fltg. Rate STRATS AES Ashford Hospitality Pfd B Boeing Eli Lilly FortuneBrandsHome&Sec Ivy Focused Value Next Ventas Zoetis Inc. AES AHPpB BA LLY FBHS IVFVC VTR ZTS 2.1 4.9 6.7 2.4 2.6 1.2 0.6 5.0 0.7 .0399 /.03873 .13 /.12 .3438 /.34375 1.71 /1.42 .5625 /.52 .20 /.18 .1412 /.141 .79 /.775 .126 /.105 M Q Q Q Q Q Q Q Q Dec15 /Dec14 Feb15 /Feb01 Jan16 /Dec29 Mar02 /Feb09 Mar09 /Feb15 Mar14 /Feb23 Dec18 /Dec13 Jan12 /Jan02 Mar01 /Jan19 AHTpG 7.4 .4609 /.46094 Q 3.3 .0616 /.0637 M Jan16 /Dec29 Dec15 /Dec14 GJP Initial Ashford Hospitality Pfd I Ivy Focused Engy Next Symbol Amount Yld % New/Old Frq Payable / Record Foreign GJO Reduced Ashford 7.375% Pfd. G STRATS Dom Res Ser 05-06 Company AHTpI IVENC .22917 .1939 Jan16 /Dec29 Dec18 /Dec13 AXIS Capital Holdings AXIS Capital Pfd. D CABCO Tr SBC Com Fltg Rte AXS AXSpD GYC 3.1 5.4 3.5 .39 .34375 .20538 Q Q Q Jan16 /Dec29 Mar01 /Feb15 Dec15 /Dec14 UHAL IVFGC IVFVC 0.1 0.6 RCMT SHO WRI 1.2 4.7 .50 .045 .2678 1.00 .58 .75 Jan05 /Dec21 Dec18 /Dec13 Dec18 /Dec13 Dec28 /Dec22 Jan16 /Dec31 Dec29 /Dec26 Suspended CPI Card Group Symbol Genon Energy Altice Luxembourg S.A. CenturyLink Freeport–McMoran Park Aerospace Holdings TeamHealth Holdings Whiting Petroleum Valeant Pharmaceuticals International GENONE ATCNA CTL FCX AVOL TMH WLL VRXCN Coupon (%) Maturity 9.875 Oct. 15, ’20 7.625 Feb. 15, ’25 7.500 April 1, ’24 5.450 March 15, ’43 5.250 Aug. 15, ’22 6.375 Feb. 1, ’25 6.250 April 1, ’23 6.125 April 15, ’25 Bond Price as % of face value Current One-day change Last week Stock Performance Close ($) % chg 1.56 1.50 1.50 1.38 1.34 1.25 1.25 1.10 71.500 92.875 96.750 94.750 100.750 87.758 100.750 88.125 ... ... 15.70 15.71 ... ... 23.64 ... ... ... –1.07 4.59 ... ... –7.55 ... 66.500 –8.00 84.211 –7.29 52.000 56.500 111.000 104.500 103.875 73.250 76.000 94.750 56.500 n.a. 112.250 n.a. n.a. 71.000 ... 14.62 ... ... 71.03 31.89 … 0.78 ... –4.88 ... ... 0.44 0.16 … –6.01 77.000 96.000 99.000 95.750 101.250 88.000 101.250 90.350 …And with the biggest price decreases Special Amerco Ivy Focused Growth Next Ivy Focused Value Next RCM Techs Sunstone Hotel Investors Weingarten Realty Inv Issuer PMTS Q Dec07 / KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. PetSmart Mattel Tops Holding Eletson Holdings Ashland Dana Toll Brothers Finance Jones Energy Holdings PETM MAT TOMA ELETSN ASH DAN TOL JONE 8.875 June 1, ’25 5.450 Nov. 1, ’41 8.000 June 15, ’22 9.625 Jan. 15, ’22 6.875 May 15, ’43 6.000 Sept. 15, ’23 4.875 Nov. 15, ’25 6.750 April 1, ’22 –2.44 –2.00 –1.00 –0.88 –0.88 –0.81 *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. Wednesday, December 13, 2017 | B17 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. Stock s s Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Stock A B C s s s s s s s s s s s s s s s s s s s s s ChinaUnicom CHU 13.45 Chipotle CMG 318.38 Chubb CB 150.50 ChunghwaTel CHT 34.98 Church&Dwight CHD 48.39 Cigna CI 208.48 CimarexEnergy XEC 113.57 CincinnatiFin CINF 74.52 Cintas CTAS 157.19 CiscoSystems CSCO 37.91 Citigroup C 76.15 CitizensFin CFG 41.92 CitrixSystems CTXS 87.22 Clorox CLX 145.15 Coca-Cola KO 45.29 Coca-Cola Euro CCE 39.19 Coca-Cola Femsa KOF 68.18 Cognex CGNX 63.41 CognizantTech CTSH 71.45 Coherent COHR 286.80 ColgatePalm CL 72.49 ColonyNorthStar CLNS 12.28 Comcast A CMCSA 39.51 Comerica CMA 85.87 CommerceBcshrs CBSH 55.36 CommScope COMM 38.77 SABESP SBS 10.18 ConagraBrands CAG 37.55 ConchoRscs CXO 139.50 ConocoPhillips COP 51.96 ConEd ED 88.09 ConstBrands A STZ 220.01 ContinentalRscs CLR 48.05 Cooper COO 229.66 Copart CPRT 43.70 Corning GLW 32.64 CoStar CSGP 287.83 Costco COST 188.30 Coty COTY 18.62 Credicorp BAP 210.61 CreditAcceptance CACC 326.25 CreditSuisse CS 17.49 CrownCastle CCI 110.89 CrownHoldings CCK 58.41 Ctrip.com CTRP 43.34 Cullen/Frost CFR 95.00 Cummins CMI 169.22 -0.14 4.99 0.26 -0.05 0.43 -0.68 0.85 -0.04 -1.14 -0.05 0.30 0.50 0.20 0.10 -0.04 -0.10 -0.56 -0.09 -0.11 -4.01 -0.68 0.07 1.07 1.20 0.35 0.34 0.06 0.31 -1.65 0.27 -1.57 0.64 -0.02 1.21 -0.20 0.07 -2.67 -0.56 0.71 1.78 3.97 0.06 -0.02 -0.21 0.18 0.32 -1.55 s s s s s t 0.20 -1.98 -0.98 0.51 0.59 0.89 -0.26 -0.04 -0.75 -0.03 0.08 -0.08 -1.06 0.23 -0.05 0.74 -0.12 -0.12 0.60 -0.59 -2.12 -0.85 -0.71 -0.35 -0.81 0.13 0.41 -0.02 -0.36 -1.24 0.10 0.12 -0.93 -1.14 0.20 -1.74 0.30 0.22 -0.01 0.04 -0.08 0.18 0.19 -4.40 -2.61 -0.76 -0.26 0.26 0.04 -0.18 -0.01 -0.04 0.14 0.30 0.11 -1.32 0.24 -0.30 0.63 0.16 0.38 ... -0.01 -0.52 2.35 -1.49 0.42 -0.91 Mutual Funds | WSJ.com/fundresearch Explanatory Notes Data provided by Tuesday, December 12, 2017 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund American Century Inv 46.10 Ultra American Funds Cl A 32.43 AmcpA p 42.50 AMutlA p 28.02 BalA p 12.89 BondA p 63.87 CapIBA p 53.00 CapWGrA EupacA p 56.91 FdInvA p 65.18 GwthA p 52.41 10.40 HI TrA p 42.43 ICAA p 23.81 IncoA p 45.19 N PerA p 47.98 NEcoA p 66.65 NwWrldA SmCpA p 57.00 12.99 TxExA p 47.08 WshA p Baird Funds 10.88 AggBdInst 11.23 CorBdInst BlackRock Funds A GlblAlloc p 20.48 BlackRock Funds Inst EqtyDivd 22.69 20.62 GlblAlloc 7.82 HiYldBd StratIncOpptyIns 9.94 Bridge Builder Trust 10.17 CoreBond Dimensional Fds 5GlbFxdInc 11.01 29.94 EmgMktVa EmMktCorEq 22.29 14.31 IntlCoreEq 20.21 IntlVal 21.52 IntSmCo IntSmVa 23.34 US CoreEq1 22.82 US CoreEq2 21.65 US Small 36.95 US SmCpVal -0.03 32.2 US TgdVal USLgVa -0.01 +0.08 +0.06 -0.01 +0.11 +0.02 -0.12 +0.21 -0.03 ... +0.10 +0.03 -0.04 -0.26 -0.23 -0.25 -0.02 +0.18 ... -0.01 20.8 17.1 14.7 3.1 13.5 22.8 28.8 22.0 24.7 6.7 18.5 12.3 27.9 33.5 29.5 24.0 5.0 19.4 4.0 4.4 ... 12.7 ... 16.3 ... 12.9 +0.01 8.0 ... 4.5 ... 3.9 -0.01 -0.07 -0.09 +0.01 +0.08 -0.02 -0.02 +0.01 +0.01 -0.05 2.1 26.7 30.3 24.9 23.4 25.8 23.4 19.8 17.6 9.9 39.26 -0.04 5.5 GrowCoK 25.67 -0.01 7.8 InvGB 40.63 +0.16 17.5 InvGrBd Dodge & Cox Balanced GblStock Income Intl Stk Stock 111.92 +0.44 14.22 +0.06 13.86 +0.01 46.43 +0.14 210.21 +1.28 DoubleLine Funds NA ... TotRetBdI Edgewood Growth Instituti EdgewoodGrInst 29.98 +0.02 Federated Instl StraValDivIS 6.15 +0.02 Fidelity 93.52 +0.15 500IdxInst 500IdxInstPrem 93.52 +0.15 500IdxPrem 93.51 +0.14 ExtMktIdxPrem r 63.98 -0.13 IntlIdxPrem r 43.60 +0.10 SAIUSLgCpIndxFd 14.33 +0.02 TMktIdxF r 77.38 +0.07 TMktIdxPrem 77.37 +0.08 ... USBdIdxInstPrem 11.58 Fidelity Advisor I NwInsghtI 31.83 -0.03 Fidelity Freedom 16.90 -0.01 FF2020 FF2025 14.65 ... 18.39 -0.01 FF2030 Freedom2020 K 16.91 -0.01 ... Freedom2025 K 14.65 Freedom2030 K 18.40 -0.01 Freedom2035 K 15.47 -0.01 ... Freedom2040 K 10.88 Fidelity Invest Balanc 23.63 +0.01 87.26 -0.21 BluCh 122.21 -0.05 Contra 122.11 -0.05 ContraK CpInc r 10.30 ... 39.48 -0.02 DivIntl 185.75 -0.84 GroCo 11.8 19.4 4.2 21.9 17.3 NA 35.0 14.7 21.3 21.3 21.3 16.6 23.5 21.2 20.4 20.4 3.3 27.5 14.6 15.7 18.4 NS NS NS NS NS 16.0 35.3 32.0 32.1 11.1 24.9 35.8 s s t s GGP GGP 23.77 Gallagher AJG 64.79 Gaming&Leisure GLPI 35.92 Gap GPS 33.96 GardnerDenver GDI 31.68 Garmin GRMN 61.13 Gartner IT 120.65 Gazit-Globe GZT 10.10 GeneralDynamics GD 196.18 GeneralElec GE 17.91 GeneralMills GIS 56.06 GeneralMotors GM 41.53 Genpact G 32.18 Gentex GNTX 20.52 GenuineParts GPC 92.73 Gerdau GGB 3.62 Gildan GIL 31.80 GileadSciences GILD 76.09 GSK GSK 35.52 GlobalPayments GPN 100.14 GoDaddy GDDY 48.21 Goldcorp GG 11.78 GoldmanSachs GS 257.68 Goodyear GT 31.57 Graco GGG 129.31 Grainger GWW 222.39 GreatPlainsEner GXP 33.75 Grifols GRFS 21.50 GrubHub GRUB 69.83 GpoAeroportuar PAC 104.41 GpoAvalAcc AVAL 8.31 GpoFinGalicia GGAL 65.26 GpFinSantMex BSMX 7.85 GrupoTelevisa TV 18.72 HCA Healthcare HCA 86.45 HCP HCP 27.14 HDFC Bank HDB 97.41 HD Supply HDS 38.65 HP HPQ 20.98 HSBC HSBC 50.55 Halliburton HAL 45.24 Hanesbrands HBI 20.95 HarleyDavidson HOG 51.02 Harris HRS 141.42 HartfordFinl HIG 56.03 Hasbro HAS 92.02 HealthcareAmer HTA 30.80 Heico A HEI.A 74.95 Heico HEI 91.13 Helm&Payne HP 58.81 HenrySchein HSIC 67.81 Herbalife HLF 70.01 Hershey HSY 113.40 Hess HES 45.41 HewlettPackard HPE 14.50 Hilton HLT 77.00 HollyFrontier HFC 47.25 Hologic HOLX 43.57 HomeDepot HD 181.80 HondaMotor HMC 33.52 Honeywell HON 153.74 HormelFoods HRL 36.99 DR Horton DHI 50.00 HostHotels HST 19.85 HuanengPower HNP 24.79 Hubbell HUBB 130.49 Humana HUM 254.64 JBHunt JBHT 111.24 HuntingtonBcshs HBAN 14.81 HuntingIngalls HII 233.54 Huntsman HUN 31.72 HyattHotels H 70.75 IAC/InterActive IAC 119.13 ICICI Bank IBN 9.60 IdexxLab IDXX 159.27 IHSMarkit INFO 45.20 ING Groep ING 18.43 Invesco IVZ 37.17 IPG Photonics IPGP 204.98 IQVIA IQV 101.65 IRSA Prop IRCP 55.50 IcahnEnterprises IEP 52.30 Icon ICLR 112.72 IDEX IEX 131.33 IllinoisToolWks ITW 163.88 Illumina ILMN 212.64 ImperialOil IMO 30.55 Incyte INCY 95.40 Infosys INFY 15.91 Ingersoll-Rand IR 86.38 Ingredion INGR 138.39 Intel INTC 43.33 InteractiveBrkrs IBKR 61.88 ICE ICE 71.20 InterContinentl IHG 59.19 IBM IBM 156.74 Net Sym Close Chg IFF 152.26 0.86 IntlFlavors IP 56.63 0.19 IntlPaper Interpublic IPG 20.47 0.17 INTU 155.85 0.04 Intuit -0.27 IntuitiveSurgical ISRG 370.49 2.34 InvitatHomes INVH 23.68 0.51 IonisPharma IONS 53.35 -2.08 IronMountain IRM 37.80 4.04 -0.01 IsraelChemicals ICL -0.86 ItauUnibanco ITUB 13.22 0.71 0.89 0.21 JD.com JD 38.56 -0.11 JPMorganChase JPM 106.85 0.30 JackHenry JKHY 116.31 -0.40 JacobsEngg JEC 68.39 -1.47 JamesHardie JHX 16.63 0.15 JanusHenderson JHG 36.67 -2.41 JazzPharma JAZZ 140.55 -0.43 JetBlue JBLU 21.59 0.31 J&J JNJ 142.60 -0.11 JohnsonControls JCI 38.25 -1.14 JonesLang JLL 149.76 -0.48 JuniperNetworks JNPR 28.92 -0.63 JunoTherap JUNO 45.75 0.16 s KAR Auction KAR 51.10 0.08 KB Fin KB 53.70 0.66 KKR KKR 20.11 0.30 KLA Tencor KLAC 103.06 -0.14 KT KT 15.50 0.02 KSCitySouthern KSU 110.30 0.12 Kellogg K 65.95 -0.04 KeyCorp KEY 20.00 -0.28 KeysightTechs KEYS 42.03 -0.49 KilroyRealty KRC 75.44 -0.89 KimberlyClark KMB 116.40 -0.82 KimcoRealty KIM 18.41 0.05 KinderMorgan KMI 17.75 0.69 Knight-Swift KNX 42.99 0.35 Kohl's KSS 50.29 J K L G H I s s s s Fund Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period. Fund s D E F DISH Network DISH 49.63 DTE Energy DTE 114.01 DXC Tech DXC 94.79 Danaher DHR 93.72 Darden DRI 87.14 DaVita DVA 70.40 Deere DE 151.07 DellTechs DVMT 79.25 DeltaAir DAL 53.62 DentsplySirona XRAY 64.99 DeutscheBank DB 19.38 DevonEnergy DVN 38.41 Diageo DEO 140.61 DiamondbkEner FANG 111.53 DigitalRealty DLR 114.90 DiscoverFinSvcs DFS 75.09 DiscovComm C DISCK 18.32 DiscovComm A DISCA 19.65 Disney DIS 107.43 DolbyLab DLB 61.30 DollarGeneral DG 91.23 DollarTree DLTR 106.22 DominionEner D 83.43 Domino's DPZ 180.61 Donaldson DCI 48.51 DouglasEmmett DEI 40.57 Dover DOV 97.19 DowDuPont DWDP 70.79 DrPepperSnap DPS 94.16 DukeEnergy DUK 87.13 DukeRealty DRE 27.81 ENI E 33.07 EOG Rscs EOG 100.28 EQT EQT 55.99 E*TRADE ETFC 49.84 EXACT Sci EXAS 50.22 EastWestBncp EWBC 60.03 EastmanChem EMN 93.02 Eaton ETN 77.76 EatonVance EV 56.61 eBay EBAY 37.44 Ecolab ECL 134.85 Ecopetrol EC 12.62 EdisonInt EIX 68.58 EdwardsLife EW 115.57 ElbitSystems ESLT 134.65 ElectronicArts EA 107.66 EmersonElec EMR 66.67 EnbridgeEnPtrs EEP 14.49 Enbridge ENB 38.37 Encana ECA 11.75 EnelAmericas ENIA 9.89 EnelGenChile EOCC 24.51 EnergyTransferEq ETE 16.33 EnergyTransfer ETP 16.72 Entergy ETR 83.26 EnterpriseProd EPD 25.73 Equifax EFX 118.22 Equinix EQIX 450.21 EquityLife ELS 91.42 EquityResdntl EQR 66.30 Ericsson ERIC 6.39 EssexProp ESS 249.15 EsteeLauder EL 124.95 EverestRe RE 219.82 EversourceEner ES 64.21 Exelixis EXEL 26.84 Exelon EXC 41.01 n- s 0.03 0.31 -0.14 0.28 -0.79 -0.03 -1.06 -2.97 1.20 0.76 -0.17 -0.49 1.41 1.23 0.61 0.69 -1.77 2.18 -0.26 0.07 ... 0.48 -0.24 -1.25 0.06 -0.55 2.92 -0.23 0.47 0.08 -0.78 0.16 1.21 1.70 -4.65 0.71 -0.01 -2.54 -0.02 -0.89 4.06 -1.07 -0.50 1.17 0.39 -0.91 -3.20 -0.62 -1.76 -0.16 0.07 -0.50 -3.84 0.13 -0.48 -0.67 -1.84 -0.26 -0.12 -0.83 0.12 -1.06 0.37 0.57 0.04 0.14 -0.54 -2.93 0.82 1.05 0.22 -0.57 0.43 0.29 -0.32 -0.56 0.88 -0.30 0.07 -0.45 2.73 0.20 -0.47 -0.38 0.24 -0.97 -1.15 -0.22 -0.86 -0.65 0.05 -0.32 -0.13 0.22 -5.44 0.06 0.30 0.56 -1.65 -2.63 -0.50 -1.50 0.75 -0.77 2.44 0.83 -1.33 -0.52 -0.51 0.53 -0.05 0.28 0.17 0.42 0.73 BRF BRFS 11.34 0.16 BT Group BT 18.09 0.03 BWX Tech BWXT 60.82 -0.14 Baidu BIDU 232.73 -0.81 BakerHughes BHGE 30.95 0.36 Ball BLL 38.89 -0.71 BancoBilbaoViz BBVA 8.47 -0.06 BancodeChile BCH 84.31 0.31 BancoMacro BMA 120.92 0.68 BcoSantChile BSAC 27.77 -0.07 BancoSantander SAN 6.65 0.02 BanColombia CIB 39.32 -0.46 BankofAmerica BAC 29.32 0.38 BankofMontreal BMO 78.45 0.09 BankNY Mellon BK 54.97 0.43 BkNovaScotia BNS 64.57 -0.17 BankofOzarks OZRK 46.13 0.23 Barclays BCS 10.65 0.08 Bard CR BCR 332.09 0.03 BarrickGold ABX 13.64 -0.01 BaxterIntl BAX 64.31 0.17 BectonDicknsn BDX 218.99 0.68 Berkley WRB 71.02 0.53 BerkHathwy B BRK.B 199.07 2.37 BerkHathwy A BRK.A 2986303150.02 BerryGlobal BERY 59.80 -0.44 BestBuy BBY 63.52 -0.10 Bio-RadLab A BIO 253.35 0.17 Biogen BIIB 327.75 -0.28 BioMarinPharm BMRN 87.38 -0.73 BlackKnight BKI 45.10 -0.50 BlackBerry BB 10.66 0.10 BlackRock BLK 517.73 5.60 Blackstone BX 32.05 -0.12 BlockHR HRB 27.54 0.04 BlueBuffaloPet BUFF 32.24 -0.25 bluebirdbio BLUE 190.95 -10.85 Boeing BA 289.94 6.78 BorgWarner BWA 53.38 -0.18 BostonProps BXP 126.18 1.13 BostonSci BSX 25.61 0.11 Braskem BAK 26.95 0.21 BrightHorizons BFAM 91.27 -0.50 BrighthouseFin BHF 59.98 0.01 Bristol-Myers BMY 63.28 0.26 BritishAmTob BTI 67.30 0.15 Broadcom AVGO 258.70 -1.25 BroadridgeFinl BR 89.38 -0.42 BrookfieldMgt BAM 43.82 0.44 BrookfieldInfr BIP 44.05 0.17 Brown&Brown BRO 51.66 0.06 Brown-Forman A BF.A 63.92 -1.42 Brown-Forman B BF.B 65.45 -0.49 BuckeyePtrs BPL 48.47 0.93 Bunge BG 68.68 -0.99 BurlingtonStrs BURL 109.62 -2.52 CA CA 33.49 0.16 CBD Pao CBD 22.93 0.27 CBRE Group CBG 43.33 -0.02 CBS B CBS 57.97 0.29 CBS A CBS.A 58.21 0.16 CDK Global CDK 70.18 -0.60 CDW CDW 70.19 -0.08 CF Industries CF 40.60 1.20 CGI Group GIB 52.79 -0.11 CH Robinson CHRW 88.00 0.03 CIT Group CIT 51.51 0.44 CME Group CME 153.03 0.32 CMS Energy CMS 49.17 -0.92 CNA Fin CNA 53.25 -0.02 CNOOC CEO 139.41 2.66 CRH CRH 34.73 -0.70 CSX CSX 56.98 0.01 CVS Health CVS 72.85 -0.23 CabotOil COG 27.60 -0.73 CadenceDesign CDNS 43.29 -0.21 CaesarsEnt CZR 12.50 -0.25 CalAtlantic CAA 54.75 -0.24 CamdenProperty CPT 93.50 1.14 CampbellSoup CPB 49.76 1.21 CIBC CM 93.43 0.28 CanNtlRlwy CNI 80.09 0.20 CanNaturalRes CNQ 34.42 -0.19 CanPacRlwy CP 178.28 0.27 Canon CAJ 38.65 0.17 CapitalOne COF 96.21 0.24 CardinalHealth CAH 60.26 0.02 Carlisle CSL 111.90 -0.99 Carlyle CG 22.30 0.05 CarMax KMX 66.86 -1.11 Carnival CCL 66.55 -0.48 Carnival CUK 66.26 -0.66 Caterpillar CAT 143.42 -0.35 Cavium CAVM 85.75 0.41 CboeGlobalMkts CBOE 127.62 1.27 Celanese A CE 106.97 1.31 Celgene CELG 109.04 1.04 Cemex CX 7.50 0.01 CenovusEnergy CVE 9.39 -0.19 Centene CNC 100.86 1.16 CenterPointEner CNP 28.38 -0.47 CentraisElBras EBR 5.73 0.01 CenturyLink CTL 15.70 -0.17 Cerner CERN 70.36 0.23 CharterComms CHTR 329.99 -1.50 CheckPoint CHKP 105.43 -0.42 Chemours CC 48.07 -0.07 CheniereEnergy LNG 47.85 0.15 CheniereEnerPtrs CQP 28.50 0.16 CheniereEnHldgs CQH 27.01 -0.13 Chevron CVX 119.68 -0.74 ChinaEastrnAir CEA 29.61 -0.36 ChinaLifeIns LFC 15.70 -0.24 ChinaLodging HTHT 119.18 -1.82 ChinaMobile CHL 48.94 0.03 ChinaPetrol SNP 70.83 -0.27 ChinaSoAirlines ZNH 46.23 -3.57 ChinaTelecom CHA 48.04 -0.36 Net Sym Close Chg s Stock no s ABB ABB 26.03 AECOM ACM 38.82 AES AES 10.72 Aflac AFL 88.76 AGCO AGCO 71.70 AGNC Invt AGNC 20.28 Ansys ANSS 145.33 ASML ASML 172.16 AT&T T 38.10 AbbottLabs ABT 55.70 AbbVie ABBV 96.30 Abiomed ABMD 192.94 Accenture ACN 152.10 ActivisionBliz ATVI 64.40 AcuityBrands AYI 174.23 Adient ADNT 80.38 AdobeSystems ADBE 172.54 AdvanceAuto AAP 103.03 AdvMicroDevices AMD 9.90 AdvSemiEngg ASX 6.50 Aegon AEG 6.20 AerCap AER 52.54 Aetna AET 181.33 AffiliatedMgrs AMG 196.75 AgilentTechs A 67.06 AgnicoEagle AEM 41.98 Agrium AGU 110.93 AirProducts APD 162.89 AkamaiTech AKAM 57.02 AlaskaAir ALK 69.80 Albemarle ALB 130.36 Alcoa AA 42.40 AlexandriaRlEst ARE 131.40 AlexionPharm ALXN 113.60 Alibaba BABA 174.64 AlignTech ALGN 234.37 Alkermes ALKS 52.15 Alleghany Y 582.96 Allegion ALLE 82.15 Allergan AGN 171.87 AllianceData ADS 238.34 AlliantEnergy LNT 44.01 AllisonTransm ALSN 41.40 Allstate ALL 103.54 AllyFinancial ALLY 29.16 AlnylamPharm ALNY 127.29 Alphabet A GOOGL 1048.77 Alphabet C GOOG 1040.48 Altaba AABA 69.77 AlticeUSA ATUS 19.05 Altria MO 71.72 AlumofChina ACH 15.65 Amazon.com AMZN 1165.08 Ambev ABEV 6.47 Amdocs DOX 64.91 Amerco UHAL 379.66 Ameren AEE 61.36 AmericaMovil A AMOV 16.88 AmericaMovil AMX 17.07 AmerAirlines AAL 50.47 AmCampus ACC 43.55 AEP AEP 76.02 AmerExpress AXP 99.37 AmericanFin AFG 105.30 AmerHomes4Rent AMH 21.88 AIG AIG 59.93 AmerTowerREIT AMT 143.51 AmerWaterWorks AWK 89.32 Ameriprise AMP 168.60 AmerisourceBrgn ABC 87.82 Ametek AME 72.13 Amgen AMGN 176.26 Amphenol APH 89.67 AnadarkoPetrol APC 48.54 AnalogDevices ADI 85.48 Andeavor ANDV 110.40 AndeavorLog ANDX 47.06 AB InBev BUD 111.12 AnnalyCap NLY 12.06 AnteroResources AR 18.55 Anthem ANTM 228.75 Aon AON 138.50 Apache APA 39.72 ApartmtInv AIV 43.88 ApolloGlbMgmt APO 32.62 Apple AAPL 171.70 ApplMaterials AMAT 50.47 Aptiv APTV 85.67 AquaAmerica WTR 37.27 Aramark ARMK 42.27 ArcelorMittal MT 31.73 ArchCapital ACGL 92.25 ArcherDaniels ADM 41.77 Arconic ARNC 24.65 AristaNetworks ANET 218.25 ArrowElec ARW 78.36 AstraZeneca AZN 33.42 Athene ATH 51.72 Atlassian TEAM 45.46 AtmosEnergy ATO 89.28 Autodesk ADSK 106.33 Autohome ATHM 57.54 Autoliv ALV 128.50 ADP ADP 117.05 AutoZone AZO 711.05 Avalonbay AVB 183.64 Avangrid AGR 51.19 AveryDennison AVY 114.46 AxaltaCoating AXTA 32.06 BB&T BBT 50.28 BCE BCE 48.60 BHPBilliton BHP 41.91 BHPBilliton BBL 36.81 BOK Fin BOKF 88.37 BP BP 40.66 Net Sym Close Chg Stock Net Sym Close Chg Expedia EXPE 118.69 ExpeditorsIntl EXPD 64.35 ExpressScripts ESRX 68.56 ExtraSpaceSt EXR 87.86 ExxonMobil XOM 82.76 F5Networks FFIV 135.49 FMC FMC 90.15 Facebook FB 176.96 FactSet FDS 204.04 Fastenal FAST 52.96 FederalRealty FRT 130.50 FedEx FDX 239.50 Ferrari RACE 106.65 FiatChrysler FCAU 17.78 FibriaCelulose FBR 14.42 FidNatlFin FNF 40.23 FidNatlInfo FIS 94.24 FifthThirdBncp FITB 30.45 58.com WUBA 68.93 FirstAmerFin FAF 56.11 FirstData FDC 16.73 FirstRepBank FRC 91.58 FirstSolar FSLR 68.91 FirstEnergy FE 32.66 Fiserv FISV 131.20 FleetCorTech FLT 189.29 Flex FLEX 18.15 FlirSystems FLIR 46.90 Fluor FLR 50.43 FomentoEconMex FMX 94.30 FordMotor F 12.60 ForestCIty A FCE.A 24.27 Fortinet FTNT 42.18 Fortis FTS 36.53 Fortive FTV 72.52 FortBrandsHome FBHS 67.23 Franco-Nevada FNV 75.54 FranklinRscs BEN 44.15 FreeportMcM FCX 15.71 FreseniusMed FMS 51.94 Stock 0.38 -0.69 -0.41 0.36 -0.35 -0.83 0.64 -0.01 -3.46 0.26 0.17 -0.14 0.06 0.11 -0.76 0.11 -0.22 0.21 0.21 -0.08 -0.74 -0.06 7.55 0.16 -1.56 -1.15 -0.95 -0.07 -0.51 0.16 0.01 0.38 0.13 0.08 1.48 0.42 0.43 -0.32 -0.18 0.35 0.08 0.30 0.23 -1.22 0.61 0.35 0.22 -0.05 0.37 0.37 -0.51 0.20 0.60 -0.35 -0.01 -0.47 0.64 -0.25 -0.45 0.19 0.53 ... -0.47 0.02 -0.26 -0.25 1.61 -0.06 0.19 -0.56 0.65 -1.15 -1.90 -0.11 -0.43 0.07 -0.08 -0.22 -1.67 -0.03 -0.40 -0.47 1.54 -0.98 -1.15 -1.47 -0.01 -1.85 0.05 -1.44 -1.29 -0.33 1.21 0.39 -0.40 1.33 s s KoninklijkePhil PHG 38.73 KoreaElcPwr KEP 17.49 KraftHeinz KHC 78.95 Kroger KR 26.33 Kyocera KYO 67.66 LATAMAirlines LTM 12.27 L Brands LB 58.32 LG Display LPL 13.63 LINE LN 43.52 LKQ LKQ 40.59 L3 Tech LLL 194.39 LabCpAm LH 156.02 LamResearch LRCX 181.57 LamarAdv LAMR 77.41 LambWeston LW 55.75 LasVegasSands LVS 70.08 Lazard LAZ 50.86 Lear LEA 176.35 Leggett&Platt LEG 46.33 Leidos LDOS 64.14 Lennar B LEN.B 49.29 Lennar A LEN 61.43 LennoxIntl LII 206.68 LeucadiaNatl LUK 26.11 LibertyBroadbandC LBRDK 85.48 LibertyBroadbandA LBRDA 84.73 LibertyGlobal A LBTYA 32.00 LibertyGlobal C LBTYK 31.13 LibertyLiLAC C LILAK 21.25 LibertyLiLAC A LILA 21.57 LibertyQVC A QVCA 24.41 LibertyVenturesA LVNTA 56.96 LibertyFormOne C FWONK 35.74 LibertyFormOne A FWONA 34.06 LibertyBraves A BATRA 22.54 LibertyBraves C BATRK 22.56 LibertySirius C LSXMK 42.62 LibertySirius A LSXMA 42.79 LibertyProperty LPT 44.14 EliLilly LLY 86.71 LincolnElectric LECO 90.89 LincolnNational LNC 77.57 LionsGate A LGF.A 31.17 LionsGate B LGF.B 29.50 LiveNationEnt LYV 42.92 LloydsBanking LYG 3.64 LockheedMartin LMT 315.89 Loews L 50.32 LogMeIn LOGM 116.50 Lowe's LOW 84.99 lululemon LULU 74.31 LyondellBasell LYB 106.99 Stock Net Sym Close Chg -0.04 MolsonCoors B TAP 80.15 -0.64 -0.69 MolsonCoors A TAP.A 81.00 0.61 0.27 Mondelez MDLZ 42.88 0.01 0.17 Monsanto MON 117.66 -0.07 -3.06 MonsterBev MNST 62.91 -0.03 0.01 Moody's MCO 152.57 0.18 0.21 s MorganStanley MS 53.85 1.08 -2.90 Mosaic MOS 24.82 0.98 -0.02 MotorolaSol MSI 93.37 1.04 MYL 39.29 -0.20 0.32 Mylan NRG Energy NRG 28.70 -0.43 NTTDoCoMo DCM 25.38 -0.21 NVR NVR 3368.97 -54.29 0.10 NXP Semi NXPI 115.64 -0.20 1.23 Nasdaq NDAQ 79.27 0.05 -0.58 NationalGrid NGG 59.13 -0.20 0.01 NatlOilwell NOV 33.14 -0.15 0.07 NatlRetailProp NNN 42.18 0.34 -0.15 NektarTherap NKTR 54.87 -0.34 0.55 NetApp NTAP 57.80 -0.78 -0.60 Netease NTES 344.52 -0.25 1.46 Netflix NFLX 185.73 -0.49 0.54 Neurocrine NBIX 70.11 -0.48 0.56 NewOrientalEduc EDU 89.18 -1.06 0.53 NY CmntyBcp NYCB 13.23 0.04 -4.49 NewellBrands NWL 31.16 0.24 0.11 NewfieldExpln NFX 30.24 -0.12 -1.29 NewmontMin NEM 34.59 -0.08 -0.07 NewsCorp B NWS 16.55 -0.35 -0.79 NewsCorp A NWSA 16.22 -0.37 0.01 s NextEraEnergy NEE 157.07 -2.18 -0.33 NielsenHoldings NLSN 37.93 0.04 -0.60 s Nike NKE 62.17 0.26 0.27 NiSource NI 26.39 -0.79 -0.20 NobleEnergy NBL 26.85 -0.03 0.06 Nokia NOK 4.55 -0.03 -2.09 NomuraHoldings NMR 5.91 0.09 0.30 Nordson NDSN 124.22 -0.80 -0.21 Nordstrom JWN 45.74 -0.10 0.23 NorfolkSouthern NSC 141.46 -0.09 -0.17 NorthernTrust NTRS 98.55 0.99 0.45 NorthropGrum NOC 307.28 2.72 -0.09 NorwegCruise NCLH 53.65 -1.07 0.58 Novartis NVS 84.46 0.66 -0.25 s NovoNordisk NVO 53.32 0.90 -1.13 Nucor NUE 61.95 0.68 0.09 Nutanix NTNX 34.71 -1.28 0.33 NVIDIA NVDA 190.84 -3.82 0.04 -0.48 0.25 0.98 OGE Energy OGE 34.05 -0.50 OKE 53.40 ... 0.23 ONEOK -3.99 OReillyAuto ORLY 246.86 -0.38 0.50 OccidentalPetrol OXY 70.03 0.53 -1.13 OldDomFreight ODFL 129.07 0.46 OLN 34.29 -0.56 -0.99 Olin OMC 74.51 0.07 0.17 Omnicom ON 19.36 -0.12 1.06 ON Semi OTEX 32.60 -0.30 0.21 OpenText ORCL 50.39 -0.08 -0.15 Oracle ORAN 17.42 0.16 -0.30 Orange OA 132.15 -0.16 -0.25 OrbitalATK IX 84.82 0.98 0.18 Orix OSK 88.38 -0.08 0.15 Oshkosh -0.80 OwensCorning OC 86.98 -0.93 PCG 53.43 -0.28 -0.83 PG&E 0.45 PLDT PHI 28.30 -0.38 0.42 s PNC Fin PNC 145.85 2.56 -0.01 POSCO PKX 76.11 -0.70 0.03 PPG Ind PPG 115.89 0.21 -0.11 PPL PPL 34.04 -0.58 -0.46 PTC PTC 60.55 -0.89 0.38 PVH PVH 132.94 -1.62 0.29 Paccar PCAR 71.91 0.17 0.65 PackagingCpAm PKG 116.96 -1.17 0.50 PacWestBancorp PACW 48.65 0.06 0.17 PaloAltoNtwks PANW 143.49 -0.67 0.16 ParkHotels PK 28.28 -0.09 -0.08 ParkerHannifin PH 191.86 -0.08 0.04 ParsleyEnergy PE 26.66 0.08 -1.40 Paychex PAYX 68.71 -0.31 0.40 PayPal PYPL 73.62 0.33 -0.16 Pearson PSO 9.92 0.03 -0.18 PembinaPipeline PBA 35.04 -0.15 -0.67 Pentair PNR 69.68 -0.09 0.02 People'sUtdFin PBCT 18.74 0.08 PEP 117.40 0.01 -0.28 PepsiCo 0.27 PerkinElmer PKI 71.12 0.31 -0.80 Perrigo PRGO 85.92 0.33 -0.55 PetroChina PTR 67.03 0.10 0.67 PetroleoBrasil PBR 9.94 0.20 -0.52 PetroleoBrasilA PBR.A 9.49 0.17 s Pfizer PFE 36.58 0.37 PhilipMorris PM 107.30 1.26 Phillips66 PSX 99.07 -0.65 1.98 PilgrimPride PPC 35.55 -0.35 -0.63 PinnacleFoods PF 56.70 -0.21 0.27 PinnacleWest PNW 89.12 -2.10 -0.34 PioneerNatRscs PXD 158.99 0.32 3.18 PlainsAllAmPipe PAA 20.35 -0.06 -0.20 PlainsGP PAGP 21.08 0.07 0.47 PolarisIndustries PII 127.96 -1.54 0.14 Potash POT 19.81 0.54 -1.98 Praxair PX 151.34 -0.92 0.09 Priceline PCLN 1723.72 8.20 0.03 PrincipalFin PFG 70.78 -0.75 0.03 Procter&Gamble PG 89.85 -0.38 3.23 s Progressive PGR 55.15 0.27 0.39 Prologis PLD 66.17 0.44 0.19 PrudentialFin PRU 116.39 0.13 0.72 Prudential PUK 48.77 -0.41 -1.43 PublicServiceEnt PEG 52.01 -0.39 0.14 PublicStorage PSA 211.72 2.04 -0.23 PulteGroup PHM 33.69 -0.12 1.62 Qiagen QGEN 31.67 0.41 -0.56 Qorvo QRVO 67.69 -0.93 -0.74 Qualcomm QCOM 64.86 -0.32 1.36 s QuantaServices PWR 39.12 -0.05 0.55 QuestDiag DGX 97.01 -0.09 -1.02 0.74 0.73 RENX 22.67 -0.08 -0.25 RELX RELX 23.30 -0.07 6.32 RELX RPM 52.64 -0.24 0.73 RPM 0.03 RSP Permian RSPP 37.09 0.09 100.14 -1.05 0.34 RalphLauren RL 0.08 RandgoldRscs GOLD 90.47 -0.36 89.53 0.49 0.43 RaymondJames RJF RTN 186.89 -0.19 -1.55 Raytheon 55.74 0.32 -1.15 RealtyIncome O RHT 125.75 -0.87 -0.37 RedHat 0.35 RegencyCtrs REG 68.59 0.91 1.00 RegenPharm REGN 381.72 0.40 RF 17.31 0.33 2.55 s RegionsFin RGA 160.36 0.03 0.20 ReinsGrp 83.68 0.02 0.07 RelianceSteel RS 0.03 RepublicSvcs RSG 64.80 -0.45 RMD 85.84 -0.60 -2.03 ResMed Stock s s s s s O P Q s Net Sym Close Chg RestaurantBrands QSR 61.00 RioTinto RIO 47.70 RobertHalf RHI 54.36 Rockwell ROK 190.75 RockwellCollins COL 134.52 RogersComm B RCI 50.39 Rollins ROL 45.30 RoperTech ROP 255.42 RossStores ROST 76.41 RoyalBkCanada RY 79.35 RoyalBkScotland RBS 7.59 RoyalCaribbean RCL 123.83 RoyalDutchA RDS.A 64.50 RoyalDutchB RDS.B 66.20 Ryanair RYAAY 114.93 SAP SAP 112.67 S&P Global SPGI 172.57 SBA Comm SBAC 165.67 SEI Investments SEIC 71.12 Sina SINA 98.20 SINOPEC SHI 56.80 SK Telecom SKM 27.31 SLGreenRealty SLG 103.02 SS&C Tech SSNC 41.52 SVB Fin SIVB 234.90 SageTherap SAGE 160.44 Salesforce.com CRM 103.67 Sanofi SNY 43.96 SantanderCons SC 18.42 Sasol SSL 31.10 Scana SCG 42.79 Schlumberger SLB 64.18 SchwabC SCHW 51.56 ScottsMiracleGro SMG 102.70 ScrippsNetworks SNI 81.66 Seagate STX 42.12 SealedAir SEE 47.71 SeattleGenetics SGEN 54.61 SemicondctrMfg SMI 6.91 SempraEnergy SRE 114.69 SensataTech ST 51.66 ServiceCorp SCI 38.00 ServiceMaster SERV 49.72 ServiceNow NOW 121.01 ShawComm B SJR 23.17 SherwinWilliams SHW 407.02 ShinhanFin SHG 43.96 Shire SHPG 149.41 Shopify SHOP 101.40 SignatureBank SBNY 136.49 SimonProperty SPG 166.35 SiriusXM SIRI 5.69 SkechersUSA SKX 36.31 Skyworks SWKS 96.47 SmithAO AOS 61.06 Smith&Nephew SNN 35.53 Smucker SJM 117.95 Snap SNAP 15.93 SnapOn SNA 170.78 SOQUIMICH SQM 51.96 Sony SNE 44.63 Southern SO 51.19 SoCopper SCCO 42.28 SouthwestAir LUV 63.43 SpectraEnerPtrs SEP 42.37 SpectrumBrands SPB 110.78 SpiritAeroSys SPR 84.59 Splunk SPLK 80.17 Sprint S 5.68 Square SQ 38.08 StanleyBlackDck SWK 165.95 Starbucks SBUX 59.27 StateStreet STT 98.18 Statoil STO 20.77 SteelDynamics STLD 40.64 Steris STE 87.90 STMicroelec STM 21.70 Stryker SYK 153.67 SumitomoMits SMFG 8.59 SunComms SUI 95.45 SunLifeFinancial SLF 40.82 SuncorEnergy SU 34.88 SunTrustBanks STI 65.54 Symantec SYMC 28.92 Net Sym Close Chg Stock 0.55 SynchronyFin SYF 37.36 SYT 92.41 -0.25 Syngenta SNPS 87.58 -0.20 Synopsys -0.72 SynovusFin SNV 48.48 SYY 61.84 ... Sysco 0.10 -0.04 -1.04 TAL Education TAL 29.34 -0.35 TD Ameritrade AMTD 52.69 0.15 TE Connectivity TEL 95.65 -0.02 Telus TU 37.65 -1.62 Ternium TX 29.49 0.56 TIM Part TSU 18.28 0.79 TJX TJX 73.62 -2.62 T-MobileUS TMUS 63.48 0.64 TRowePrice TROW 102.64 0.87 TaiwanSemi TSM 39.30 -0.94 TakeTwoSoftware TTWO 107.62 -0.03 Tapestry TPR 41.51 -1.39 TargaResources TRGP 46.40 -1.30 Target TGT 61.02 -0.58 TataMotors TTM 31.51 0.42 TechnipFMC FTI 28.77 0.14 TeckRscsB TECK 23.42 2.51 TelecomArgentina TEO 37.71 -2.89 TelecomItalia TI 8.88 -0.87 TelecomItalia A TI.A 7.49 0.26 TeledyneTech TDY 178.39 0.23 Teleflex TFX 249.86 -0.01 TelefonicaBras VIV 15.40 0.41 Telefonica TEF 9.78 -0.38 TelekmIndonesia TLK 30.63 0.84 Tenaris TS 31.05 0.04 Teradyne TER 40.95 -0.15 Tesla TSLA 341.03 1.65 TevaPharm TEVA 16.52 -0.06 TexasInstruments TXN 98.43 -0.66 Textron TXT 54.57 -0.02 ThermoFisherSci TMO 189.49 -3.34 ThomsonReuters TRI 44.28 3.76 ThorIndustries THO 149.40 0.15 3M MMM 236.58 -0.64 Tiffany TIF 95.50 -2.08 TimeWarner TWX 90.65 0.21 Toll Bros TOL 47.09 -0.74 Torchmark TMK 89.77 -0.31 Toro TTC 64.59 0.91 TorontoDomBk TD 56.57 -2.71 Total TOT 56.03 0.10 TotalSystem TSS 77.00 4.09 ToyotaMotor TM 124.25 0.05 TractorSupply TSCO 67.84 -0.13 TransCanada TRP 48.58 -0.51 TransDigm TDG 270.00 -0.30 TransUnion TRU 55.00 0.06 Travelers TRV 134.35 0.69 Trimble TRMB 40.80 -0.29 TurkcellIletism TKC 9.88 -0.55 TurquoiseHill TRQ 3.01 0.04 21stCenturyFoxA FOXA 34.10 -0.27 21stCenturyFoxB FOX 33.60 -0.49 Twitter TWTR 21.65 -0.05 TylerTech TYL 181.50 0.11 TysonFoods TSN 82.67 0.16 UBS Group UBS 17.86 -2.97 UDR UDR 39.37 0.77 UGI UGI 48.32 -1.22 US Foods USFD 30.52 0.24 UltaBeauty ULTA 214.87 -0.22 UltSoftware ULTI 213.25 -0.95 UltraparPart UGP 22.17 0.20 Unilever UN 57.31 0.77 Unilever UL 56.08 0.56 UnionPacific UNP 130.70 -0.06 UnitedContinental UAL 63.36 0.07 UnitedMicro UMC 2.49 -0.08 UPS B UPS 118.16 0.96 s UnitedRentals URI 163.65 0.23 US Bancorp USB 55.50 -0.02 US Steel X 33.00 -0.05 UnitedTech UTX 123.48 0.12 UnitedTherap UTHR 135.22 0.92 UnitedHealth UNH 222.49 -0.30 UnivDisplay OLED 169.50 T U V co Fo m rp m e er rs ci on al a us l, e on Tuesday, December 12, 2017 Net Sym Close Chg Net YTD NAV Chg % Ret 185.72 -0.84 7.92 ... 11.26 -0.01 53.52 -0.03 LowP r LowPriStkK r 53.46 -0.03 103.83 +0.06 MagIn 109.66 -0.47 OTC 23.29 +0.01 Puritn SrsEmrgMkt 21.18 -0.17 SrsGroCoRetail 18.24 -0.09 SrsIntlGrw 16.38 -0.01 SrsIntlVal 10.94 +0.05 10.65 -0.01 TotalBond First Eagle Funds 61.07 +0.01 GlbA FPA Funds 35.44 +0.15 FPACres FrankTemp/Frank Adv IncomeAdv 2.35 +0.01 FrankTemp/Franklin A 7.45 -0.01 CA TF A p 2.37 +0.01 IncomeA p 60.41 -0.01 RisDv A p FrankTemp/Franklin C 2.40 ... Income C t FrankTemp/Temp A GlBond A p 12.18 -0.03 Growth A p 27.44 +0.12 FrankTemp/Temp Adv GlBondAdv p 12.14 -0.02 Harbor Funds 76.96 -0.17 CapApInst IntlInst r 70.66 -0.25 Harding Loevner IntlEq NA ... Invesco Funds A 11.55 +0.05 EqIncA John Hancock Class 1 16.14 -0.01 LSBalncd 17.37 ... LSGwth John Hancock Instl DispValMCI 24.64 -0.01 JPMorgan Funds 41.15 -0.06 MdCpVal L 35.9 3.7 4.1 18.5 18.6 25.6 38.4 18.1 34.9 36.5 28.0 19.4 3.9 12.6 9.9 8.2 5.5 8.0 18.8 7.8 4.1 16.5 4.3 35.9 21.0 NA 10.5 14.3 18.2 14.8 13.0 s s M N M&T Bank MTB 172.49 MGM Resorts MGM 32.71 MPLX MPLX 37.33 MSCI MSCI 128.00 Macerich MAC 66.47 Macy's M 25.69 MagellanMid MMP 68.41 MagnaIntl MGA 56.18 Manpower MAN 125.64 ManulifeFin MFC 20.87 MarathonOil MRO 15.18 MarathonPetrol MPC 64.49 s Markel MKL 1121.69 MarketAxess MKTX 197.21 Marriott MAR 128.76 Marsh&McLen MMC 84.65 MartinMarietta MLM 207.25 MarvellTech MRVL 22.19 Masco MAS 42.19 Mastercard MA 152.50 MatchGroup MTCH 28.37 MaximIntProducts MXIM 51.45 McCormickVtg MKC.V 100.79 McCormick MKC 101.07 McDonalds MCD 172.23 McKesson MCK 154.55 Medtronic MDT 82.00 MelcoResorts MLCO 26.12 s MercadoLibre MELI 295.12 Merck MRK 57.07 MetLife MET 53.67 MettlerToledo MTD 625.01 MichaelKors KORS 61.12 MicroFocus MFGP 32.92 MicrochipTech MCHP 85.84 MicronTech MU 41.86 Microsemi MSCC 50.80 Microsoft MSFT 85.58 MidAmApt MAA 103.88 Middleby MIDD 127.53 s MitsubishiUFJ MTU 7.22 MizuhoFin MFG 3.68 MobileTeleSys MBT 8.87 MohawkInds MHK 275.34 Net YTD NAV Chg % Ret Fund JPMorgan R Class CoreBond 11.62 ... Lazard Instl EmgMktEq 19.43 -0.08 Loomis Sayles Fds LSBondI 14.17 ... Lord Abbett A ... ShtDurIncmA p 4.26 Lord Abbett F 4.25 ... ShtDurIncm Metropolitan West 10.65 -0.01 TotRetBd 10.65 ... TotRetBdI 10.02 -0.01 TRBdPlan MFS Funds Class I 42.16 +0.25 ValueI MFS Funds Instl 25.56 +0.04 IntlEq Mutual Series 32.92 +0.13 GlbDiscA Oakmark Funds Invest 34.70 +0.07 EqtyInc r Oakmark 87.06 +0.19 OakmrkInt 28.97 +0.06 Old Westbury Fds LrgCpStr 14.28 -0.85 Oppenheimer Y 41.46 -0.18 DevMktY 43.28 +0.01 IntGrowY Parnassus Fds 42.83 -0.04 ParnEqFd PIMCO Fds Instl NA ... AllAsset NA ... TotRt PIMCO Funds A NA ... IncomeFd PIMCO Funds D NA ... IncomeFd PIMCO Funds Instl NA ... IncomeFd PIMCO Funds P NA ... IncomeP Price Funds BlChip 98.98 -0.14 CapApp 30.25 +0.03 EqInc 36.16 +0.11 EqIndex 71.79 +0.11 71.21 -0.10 Growth 75.24 -0.20 HelSci 40.24 -0.04 InstlCapG 19.28 ... IntlStk 15.27 +0.03 IntlValEq 93.49 -0.38 MCapGro 32.08 -0.10 MCapVal 56.23 -0.29 N Horiz 9.48 ... N Inc 11.39 +0.02 OverS SF r 23.48 ... R2020 18.13 ... R2025 R2030 22.4 7.2 2.3 2.4 2.9 3.2 3.2 17.7 26.2 9.4 14.1 20.1 27.6 17.9 30.4 24.8 16.5 NA NA NA NA NA NA 36.3 15.5 16.5 21.0 33.7 27.4 37.6 26.1 19.2 24.0 10.4 29.8 3.8 25.6 15.0 17.0 Net YTD NAV Chg % Ret Fund 26.75 ... 19.57 ... 28.14 ... R2040 40.21 +0.08 Value PRIMECAP Odyssey Fds 37.57 -0.13 Growth r Principal Investors 13.91 -0.01 DivIntlInst Prudential Cl Z & I 14.53 -0.01 TRBdZ Schwab Funds S&P Sel 41.74 +0.07 TIAA/CREF Funds 19.54 +0.02 EqIdxInst IntlEqIdxInst 19.90 +0.03 Tweedy Browne Fds 28.67 +0.07 GblValue VANGUARD ADMIRAL 246.93 +0.39 500Adml 34.75 +0.01 BalAdml 11.75 -0.02 CAITAdml CapOpAdml r 159.75 -0.43 EMAdmr 36.77 -0.20 EqIncAdml 79.06 +0.17 ExplrAdml 97.04 -0.22 84.04 -0.18 ExtndAdml GNMAAdml 10.46 -0.01 72.25 -0.03 GrwthAdml HlthCareAdml r 90.52 +0.11 HYCorAdml r 5.93 +0.01 25.87 +0.03 InfProAd 95.11 -0.45 IntlGrAdml ITBondAdml 11.37 -0.01 ITIGradeAdml 9.76 -0.01 LTGradeAdml 10.72 +0.01 MidCpAdml 190.54 -0.36 MuHYAdml 11.40 -0.02 14.10 -0.02 MuIntAdml 11.65 -0.02 MuLTAdml 10.90 -0.01 MuLtdAdml MuShtAdml 15.73 -0.01 PrmcpAdml r 139.82 -0.23 REITAdml r 119.65 +0.62 SmCapAdml 70.13 -0.18 STBondAdml 10.38 -0.01 ... STIGradeAdml 10.64 10.75 ... TotBdAdml TotIntBdIdxAdm 22.05 -0.01 TotIntlAdmIdx r 30.10 ... TotStAdml 66.65 +0.06 14.29 +0.02 TxMIn r 41.50 +0.14 ValAdml 71.55 +0.29 WdsrllAdml 66.27 +0.06 WellsIAdml 75.61 +0.20 WelltnAdml WndsrAdml 81.44 +0.14 VANGUARD FDS 27.36 +0.06 DivdGro 3.7 R2035 R S 18.7 20.1 21.2 19.5 31.2 26.5 6.1 21.3 20.4 23.6 14.5 21.3 13.4 4.5 28.6 25.9 17.9 20.7 16.5 1.8 27.2 19.4 7.0 2.5 41.3 3.7 4.0 10.8 18.1 7.3 4.3 5.9 2.1 1.1 28.5 5.2 14.6 1.1 2.1 3.4 2.7 24.6 20.5 24.1 16.7 15.9 9.7 14.3 18.6 18.6 Net YTD NAV Chg % Ret 214.56 HlthCare r INSTTRF2020 22.81 INSTTRF2025 23.12 INSTTRF2030 23.35 INSTTRF2035 23.58 INSTTRF2040 23.81 INSTTRF2045 23.97 39.94 IntlVal LifeCon 20.07 33.72 LifeGro 27.30 LifeMod PrmcpCor 27.78 33.86 SelValu r 27.62 STAR 10.64 STIGrade TgtRe2015 16.08 32.00 TgtRe2020 18.79 TgtRe2025 TgtRe2030 34.00 20.91 TgtRe2035 36.07 TgtRe2040 TgtRe2045 22.67 36.47 TgtRe2050 13.68 TgtRetInc TotIntBdIxInv 11.03 27.35 WellsI 43.78 Welltn 40.31 WndsrII +0.27 ... ... +0.01 +0.01 +0.01 +0.01 +0.12 +0.01 +0.01 +0.01 -0.02 -0.06 +0.01 ... ... +0.01 ... +0.02 +0.01 +0.02 +0.01 +0.02 +0.01 ... +0.02 +0.12 +0.16 VANGUARD INDEX FDS 246.87 +0.38 500 207.40 -0.44 ExtndIstPl SmValAdml 56.76 -0.09 10.71 ... TotBd2 17.99 ... TotIntl 66.62 +0.07 TotSt VANGUARD INSTL FDS 34.76 +0.02 BalInst DevMktsIndInst 14.31 +0.02 DevMktsInxInst 22.36 +0.02 84.04 -0.18 ExtndInst 72.25 -0.04 GrwthInst InPrSeIn 10.54 +0.01 243.62 +0.39 InstIdx 243.64 +0.39 InstPlus 59.79 +0.06 InstTStPlus MidCpInst 42.09 -0.08 MidCpIstPl 207.59 -0.39 70.13 -0.18 SmCapInst STIGradeInst 10.64 ... 10.75 ... TotBdInst 10.71 ... TotBdInst2 TotBdInstPl 10.75 ... TotIntBdIdxInst 33.08 -0.02 TotIntlInstIdx r 120.36 -0.01 TotItlInstPlId r 120.38 -0.01 66.66 +0.06 TotStInst 41.50 +0.14 ValueInst Western Asset CorePlusBdI NA ... 19.4 13.3 15.0 16.5 17.9 19.4 20.0 25.8 10.4 18.0 14.2 25.2 17.7 17.4 2.0 10.8 13.2 14.9 16.4 17.9 19.4 20.0 20.0 8.1 2.7 9.7 14.2 15.8 21.1 16.6 10.6 3.3 24.5 20.3 13.4 24.2 24.2 16.6 27.2 2.5 21.3 21.3 20.4 18.1 18.2 14.6 2.1 3.4 3.3 3.4 2.7 24.6 24.6 20.5 16.7 NA s s s Net Sym Close Chg Stock UniversalHealthB UHS 112.44 UnumGroup UNM 56.40 VEON VEON 3.88 VEREIT VER 7.86 VF VFC 72.53 s Visa V 113.46 VailResorts MTN 218.43 Vale VALE 11.06 -0.98 s ValeantPharm VRX 21.87 0.61 ValeroEnergy VLO 86.94 0.61 Vantiv VNTV 74.79 ... VarianMed VAR 111.45 0.11 Vectren VVC 67.70 0.26 Vedanta VEDL 18.28 0.32 VeevaSystems VEEV 55.87 0.41 Ventas VTR 63.82 0.79 VeriSign VRSN 114.37 -0.07 VeriskAnalytics VRSK 94.60 -0.61 Verizon VZ 53.19 0.12 VertxPharm VRTX 140.91 0.16 Viacom B VIAB 29.59 -0.74 Viacom A VIA 33.95 -0.33 VistraEnergy VST 18.07 0.18 VMware VMW 120.04 0.15 s Vodafone VOD 31.25 0.06 VornadoRealty VNO 77.71 -0.06 VoyaFinancial VOYA 46.30 -0.04 VulcanMatls VMC 121.51 -0.23 0.02 -1.98 0.03 -0.14 1.04 -2.32 0.36 -0.01 WABCO WBC 145.02 -0.17 WEC Energy WEC 67.66 0.31 W.P.Carey WPC 69.84 0.49 WPP WPP 90.83 12.12 Wabtec WAB 76.73 0.08 Wal-Mart WMT 96.70 -0.40 WalgreensBoots WBA 72.01 -0.06 WasteConnections WCN 69.07 ... WasteMgt WM 84.64 -0.07 Waters WAT 197.50 -0.75 Watsco WSO 168.82 -2.72 Wayfair W 72.45 -0.84 Weibo WB 101.69 -0.17 WellCareHealth WCG 205.90 -0.65 s WellsFargo WFC 60.33 0.14 Welltower HCN 66.12 -0.63 WestPharmSvcs WST 99.00 0.02 WestarEnergy WR 55.65 0.36 WestAllianceBcp WAL 58.55 0.38 WesternDigital WDC 81.77 0.32 WesternGasEquity WGP 37.31 0.69 WesternGasPtrs WES 47.81 -0.29 WesternUnion WU 19.50 -4.38 WestlakeChem WLK 100.88 -0.71 WestpacBanking WBK 23.84 1.19 s WestRock WRK 63.94 -0.39 Weyerhaeuser WY 35.63 -0.02 WheatonPrecMet WPM 20.88 -0.05 Whirlpool WHR 166.51 0.44 Williams WMB 29.08 0.33 WilliamsPartners WPZ 37.92 -0.40 WillisTowers WLTW 155.20 -1.39 Wipro WIT 5.30 0.07 WooriBank WF 42.91 0.06 Workday WDAY 102.49 0.14 Wyndham WYN 111.98 -1.08 WynnResorts WYNN 162.31 -0.43 XPO Logistics XPO 76.29 -1.27 XcelEnergy XEL 50.54 -1.52 Xerox XRX 29.74 0.62 Xilinx XLNX 67.68 XYL 67.54 -0.12 Xylem YPF 22.03 -0.07 YPF YY 106.31 1.65 YY YNDX 32.89 -0.88 Yandex -0.04 YumBrands YUM 81.99 YUMC 40.56 0.11 YumChina -0.17 ZTO Express ZTO 14.91 ZAYO 36.46 0.23 s ZayoGroup Z -0.42 Zillow C 40.52 ZG 0.18 Zillow A 40.39 -0.39 ZimmerBiomet ZBH 113.54 -0.28 ZionsBancorp ZION 50.46 ZTS 72.23 -2.10 Zoetis 1.46 -0.25 0.06 -0.05 -0.07 1.09 -6.19 0.22 1.32 -0.26 0.17 0.27 -1.68 0.02 -0.77 0.50 0.05 0.28 1.35 -0.77 0.13 -0.25 -0.04 -1.05 ... 0.70 -0.02 -1.41 W X Y Z ly . How to Read the Stock Tables 0.37 -1.51 -0.30 -0.94 -0.57 -0.23 0.13 0.24 -0.73 -0.26 0.59 -2.14 -2.31 0.40 1.46 0.20 -0.08 -1.10 0.61 0.57 0.34 0.46 -0.03 0.24 0.01 -0.48 0.19 -0.37 -1.36 0.18 0.53 -0.08 -0.06 0.03 -2.32 -0.76 -1.95 -0.11 -0.90 0.15 -0.70 0.26 -0.17 -1.03 -0.40 -0.46 -0.24 -0.61 1.16 -0.33 -0.46 0.03 0.52 0.46 BANKRATE.COM® MMA, Savings and CDs Average Yields of Major Banks Type Tuesday, December 12, 2017 MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR 0.13 0.26 0.07 0.07 0.07 0.08 0.13 0.14 0.20 0.22 0.36 0.38 0.50 0.54 0.47 0.49 0.94 0.99 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.01 0.00 -0.01 0.00 -0.01 -0.01 -0.02 National average Savings Jumbos Weekly change Savings Jumbos Consumer Savings Rates Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate, not an indication of financial strength or weakness. Information is believed to be reliable, but not guaranteed. High yield savings Bank/rank Phone number Minimum Yield (%) Money market and savings account $1 1.50 $100 1.35 $0 1.30 EH National Bank /5 $0 (888) 392-5265 M.Y. Safra Bank, FSB /NR $5,000 (212) 652-7200 VirtualBank /4 $10,000 (877) 998-2265 0.81 DollarSavingsDirect /4 (866) 395-8693 CIT Bank /5 (855) 462-2652 Barclays /5 (888) 720-8756 One-month CD 0.30 0.15 Two-month CD VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Bank/rank Phone number Yield Minimum (%) Six-month CD M.Y. Safra Bank, FSB /NR $5,000 (212) 652-7200 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 CD Bank /4 $10,000 (888) 201-8185 1.42 1.41 1.40 One-year CD Banesco USA /4 $1,500 (786) 552-0524 ableBanking,adivisionofNortheastBank/5 $1,000 (888) 426-2253 CD Bank /4 $10,000 (888) 201-8185 1.75 1.75 1.75 Two-year CD $10,000 0.15 $1,000 0.05 Three-month CD M.Y. Safra Bank, FSB /NR $5,000 (212) 652-7200 CD Bank /4 $10,000 (888) 201-8185 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 iGOBanking.com /NR $5,000 (800) 581-2889 Northern Bank Direct /4 $500 (844) 348-8996 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 2.10 2.00 1.88 Five-year CD 1.16 1.15 1.06 Capital One 360 /5 $0 (800) 289-1992 Goldman Sachs Bank USA /5 $500 (855) 730-7283 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 2.45 2.40 2.38 High yield jumbos - Minimum is $100,000 Money market and savings account ableBanking,adivisionofNortheastBank/5 (877) 505-1933 M.Y. Safra Bank, FSB /NR (212) 652-7200 BBVA Compass /3 (800) COMPASS 1.30 1.26 1.25 One-month CD EH National Bank /5 (888) 392-5265 M.Y. Safra Bank, FSB /NR (212) 652-7200 USAA /NR (800) 583-8295 0.30 0.22 1.41 1.40 MyeBanc,ADivisionofBACFloridaBank/4 (855) 512-0989 ableBanking,adivisionofNortheastBank/5 (888) 426-2253 EverBank /4 (855) 228-6755 1.77 1.75 1.72 Two-year CD 0.15 0.05 0.01 Three-month CD Luana Savings Bank /5 (800) 666-2012 M.Y. Safra Bank, FSB /NR (212) 652-7200 First Internet Bank of Indiana /4 (888) 873-3424 1.42 One-year CD 0.81 Two-month CD VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Citizens Trust Bank /4 (404) 659-5959 Six-month CD M.Y. Safra Bank, FSB /NR (212) 652-7200 First Internet Bank of Indiana /4 (888) 873-3424 Luana Savings Bank /5 (800) 666-2012 MyeBanc,ADivisionofBACFloridaBank/4 (855) 512-0989 First Internet Bank of Indiana /4 (888) 873-3424 Luana Savings Bank /5 (800) 666-2012 2.00 1.88 1.86 Five-year CD 1.21 1.16 1.06 First Internet Bank of Indiana /4 (888) 873-3424 M.Y. Safra Bank, FSB /NR (212) 652-7200 Synchrony Bank /5 (800) 903-8154 2.38 2.36 2.35 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields are based on method of compounding and rate stated for the lowest required opening deposit to earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of which may be checks. Rates are subject to change. Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408 Internet: www.bankrate.com For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. B18 | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. * *** BANKING & FINANCE Fund founder Burbank, who cashed in on subprime crisis, bets on cryptocurrencies BY ROB COPELAND AND PETER RUDEGEAIR John Burbank made millions spotting a bubble in subprime mortgages before the financial crisis. Now he is circling his next big score: cryptocurrencies. Mr. Burbank’s San Francisco-based hedge fund Passport Capital plans to pull back from much of its traditional macroeconomic trading in assets like stocks and bonds and launch a new arm that focuses only on cryptocurrencies such as bitcoin, according to people familiar with the plans. Passport has struggled for years to equal its crisis-era success and now manages a fraction of what was once a roughly $5 billion war chest. Several prospective investors approached about the new venture say the firm’s flagship fund was down by double digits last year and was down again in 2017. Passport said in a letter to investors late Monday it would close its main fund, having earlier told some investors it expected further redemptions by year-end, a person close to the firm said. In the same letter, Mr. Burbank alluded to “a new area in the coming months which we will communicate about when ready.” That effort is in cryptocurrencies, the people familiar with the plans said. Mr. Burbank wrote: “It’s very important to me to win.” Despite his recent performance, Mr. Burbank’s pronouncements remain closely followed by his peers. He would become one of the more prominent major investors to go big on bitcoin and the like, along with the former Fortress Investment Group hedge-fund manager Michael Novogratz and Horizon Kinetics Chief Investment Officer Murray Stahl. The rise in digital assets has been pronounced in recent weeks as bitcoin itself has marched up Wall Street’s undercard toward the main event. Originally conceived in 2008 as an alternative digital form of money that not by any RICK WILKING/REUTERS ‘Smart Money’ Shifts to Bitcoin John Burbank’s firm told investors it is closing its main fund. government, bitcoin got a bump in popularity this year after regulators in various countries approved more extensive trading in it. Now, bitcoin is the bestperforming financial asset of the year, up 1,600% in 2017. Trading in the first U.S. bitcoin futures began Sunday evening and was quickly halted as the exchange provider’s website experienced outages from heavy traffic. Coinbase, a digital wallet for bitcoin, became the most-downloaded smartphone app in Apple Inc.’s store earlier this month. A Duke University graduate, Mr. Burbank is in some ways an unlikely evangelist for digital currency. He made his name buying up credit-default swaps ahead of the financial crisis, resulting in a more-than 200% gain for his main fund in 2007. That year, he made $370 million personally, Forbes estimated. His predictions have mostly failed to pan out since. Passport bet big on gold-mining companies in 2014, but prices dropped thereafter, and slashed its overall exposure to rising stocks in early 2015, missing out on some of the subsequent rally. The new cryptocurrency-focused fund’s leadership will include longtime Passport executive Seth Spalding, the people said. He didn’t respond to a request for comment. Passport hasn’t told prospective investors much about its strategy but has scheduled a call for later this week to lay out more, a person said. “Technological progress and its non-linear enhancement or deflation of the biggest industries and markets in the world is my choice for what will have mattered most five years from now,” Mr. Burbank wrote in Monday’s letter. “I want to capture these extraordinary outcomes in new ways appropriate to the current era.” Passport will continue to operate its roughly $300 million special opportunities fund, which holds some of the firm’s more successful bets on companies such as Alibaba Group Holding Ltd. co Fo m rp m e er rs ci on al a us l, e on FRANCK ROBICHON/EPA/SHUTTERSTOCK Bitcoin usage is going wider in Japan, and numerous restaurants and stores are accepting payments with the digital currency. n- Now, I close shop when I have an appointment or leave early,” said Mr. Lee. He has hired two people at his shop since he started investing in bitcoin and bought his wife an expensive Chanel handbag for their wedding anniversary. “My goal is to accumulate as many bitcoin as I can,” Mr. Lee said, adding that he expects the virtual currency to replace standard currencies in the future. In Hong Kong, cryptocurrency fans gathered one recent Friday evening at what was advertised as a “Bitcoin Bubble Bash.” The Bitcoin Association of Hong Kong orga- no Continued from page B1 bitcoin, particularly younger people who have grown up in a world of e-commerce and mobile payments. China last year made up the bulk of trading volume before regulators clamped down. But by the end of November, Japan, South Korea and Vietnam accounted for nearly 80% of bitcoin trading activity globally, according to research firm CryptoCompare, while U.S. trading was about onefifth of the volume. In the past few weeks, the U.S. share of the overall total has increased. While the numbers can fluctuate significantly daily, South Korea at one point last week accounted for as much as a quarter of bitcoin trading activity, exceeding that of the U.S., according to Coinhills, a data firm that tracks digital currencies. South Korea has a population of about 51 million, compared with 323 million in the U.S. “Asia in general has a lot of interest in trading cryptocurrencies…[They] are the cool new thing that young people are excited about” said Vitalik Buterin, the creator of another type of cryptocurrency called ethereum, in a recent interview in Seoul. Lee Sang-chul, 32 years old, is one of the millions of South Koreans who have become enamored with bitcoin. Mr. Lee, who runs a car-detailing shop in the southern port city of Busan, invested 100 million South Korean won (about $92,000) into the virtual currency in October, a decision he describes as lifechanging thanks to the gains he has made. “Before bitcoin, I’d be at my shop from morning to evening. nized the meetup, with BitMEX, a trading platform, helping pay for pizza, wraps, beer and wine to celebrate “the most successful year of bitcoin history yet (again!),” according to the event invite. Nearly 200 people registered, with attendees including teachers, equity traders and insurance brokers. “I’ve doubled my money. It’s only going up. I’m getting rich so quick,” said one person who attended the event. It is people like these across Asia who have propelled bitcoin’s prices this year. Analysts reckon traditional Wall Street professionals won’t become the market’s main driving force for some time. “It’s the first ever bankerless bubble,” Joshua Brown, chief executive of New York investment-advisory firm Ritholtz Wealth Management, wrote on his blog this month. “There’s never been a phenomenon like this where the general public beats the ‘big money’…We have a full-blown mania on our hands and Wall Street is still at the drawing board.” Bitcoin’s popularity in South Korea has led to the cryptocurrency often trading at a higher price there than elsewhere. When bitcoin surged past $17,000 last week for the first time, according to CoinDesk, a research site that distributes the most widely quoted price across the cryptospace, it hit almost $25,000 on Bithumb, South Korea’s biggest cryptocurrency exchange. Two other South Korean exchanges, Coinone and Korbit, also displayed prices well above $20,000. Those spreads have since narrowed. “Every market had its own local rules and that creates all different types of discrepancies,” said Cedric Jeanson, founder and chief executive of BitSpread, a bitcoin-focused hedge fund. —Kwanwoo Jun contributed to this article. A Bad Year Several of California’s most destructive wildﬁres have occurred this year. Fire Structures destroyed Tubbs (October 2017) 5,643 Tunnel (October 1991) 2,900 Cedar (October 2003) 2,820 Valley (September 2015) 1,955 RYAN CULLOM/ASSOCIATED PRESS Witch (October 2007) 1,650 Nuns (October 2017) 1,003 Jones (October 1999) 954 Butte (September 2015) 921 *Not yet contained Source: Cal Fire Firefighters battled a blaze in California’s Ventura County last week. Continued from page B1 owner insurance typically covers additional living expenses, and in some cases those expenses are covered if homeowners are ordered to evacuate but their homes aren’t damaged. The top two homeowner insurers in California by premium revenue are State Farm and Farmers Insurance, which account for almost 36% of the market, according to ratings firm A.M. Best. State Farm had already received 1,050 homeowner claims and 160 auto claims stemming from the Southern California fires as of Sunday, a spokesman said. The insurer received 5,700 homeowner and auto claims from the October wildfires. A Farmers spokesman said the insurer had received almost 1,000 claims as of Monday related to the Southern California fires from all lines of business and more than 4,000 claims from the October wildfires, mostly from homeowners and mobile-home residents. Insurers could also face commercial liability claims if investigators find that any of the wildfires were sparked by power lines, transformers, or other equipment maintained by utility companies. California fire officials and utility regulators are still investigating the cause of the Northern California wildfires 1,355 Old (October 2003) Thomas (December 2017) * FIRE BY DAVE MICHAELS WASHINGTON—The nation’s No. 1 audit regulator is getting a full makeover. Five new members were appointed Tuesday to oversee the Public Company Accounting Oversight Board, a regulator of auditors who examine the books of publicly traded companies. The picks include William Duhnke, a Republican Senate aide who will be the board’s chairman, and James Kaiser, a PricewaterhouseCoopers partner, marking the first time an auditor has joined the regulator from a Big Four accounting firm. The changes show how the Securities and Exchange Commission’s new chairman, Jay Clayton, is putting his imprint on the PCAOB. Mr. Clayton, whose agency oversees the board, didn’t reappoint any of the board’s members, signaling a break with an era during which the PCAOB sometimes clashed with the SEC and the accounting firms over the pace and emphasis of its rule making. James Doty, the board’s exiting chairman, pushed rules that forced auditors to disclose more about their roles and critical judgments, which the audit profession often opposed. Under Mr. Doty’s watch, the PCAOB recently approved a rule that will require auditors to tell investors about any “critical audit matters”—areas of their audit that were especially challenging or complex. Some SEC officials had urged Mr. Doty to focus more on standards that govern the nitty-gritty of how auditors do their jobs. “Obviously there has been some tension that has built up over the years, particularly between the firms, the business lobby and the board,” said Michael Shaub, an accounting professor at Texas A&M University. “It looks like they are reconstituting it. It’s literally a reset.” Mr. Duhnke, a lawyer and former Navy officer, will occupy one of the most prized jobs in financial regulation. His position pays more than $672,000 annually. Board members earn about $547,000 a year. Unlike some of his predecessors, Mr. Duhnke isn’t a specialist in securities law or financial reporting, having worked on ly . ASIA SEC Chief Overhauls Auditing Regulator in October, which killed more than 40 people. Several lawsuits already have been filed against PG&E Corp., parent of the state’s largest investorowned utility, in connection with the October fires. PG&E Chief Executive Geisha Williams said in November that it was “simply too early to make an assumption about liability.” In an October financial filing, the company said it had about $800 million in liability insurance to cover any potential losses resulting from the 794 THE WALL STREET JOURNAL. fires, but warned that losses beyond that amount could have a material effect. The October wildfires destroyed or damaged more than 21,000 homes and 2,800 businesses, according to the state insurance commissioner. Residential property losses added up to $8.4 billion, or nearly 90% of the total insured loss, with commercial property, auto and other sectors accounting for the rest. —Erin Ailworth contributed to this article The changes show the new SEC chairman putting his imprint on the board. Senate panels as diverse as the Intelligence, Banking and Rules committees. The other board members include University of Denver law professor Jay Brown, Kathleen Hamm of Promontory Financial Group LLC and Exelon Corp. Controller Duane DesParte. Mr. DesParte is a former audit partner at accounting firm Deloitte, according to his LinkedIn profile. The SEC has never before declined to reappoint PCAOB members who were eligible to serve another term, said Lewis Ferguson, one of the departing board members. Current PCAOB member Jeanette Franzel had sought reappointment but wasn’t picked. Mr. Ferguson was in the middle of term that expires in 2019 and was told he would be replaced, he said, adding that he was told “it had nothing to do with me personally.” Board member Steven Harris had completed two terms that began in 2008 and wasn’t eligible for another term. “My sense is this administration and this SEC wanted to put their own stamp on the board, and frankly I feel honored that I got to serve as long as I did,” said Mr. Ferguson, an attorney who joined as a board member in 2011. The Sarbanes-Oxley law that created the PCAOB effectively barred a practicing public accountant from serving as chairman, a restriction intended to boost the regulator’s independence from the accounting industry. 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. Wednesday, December 13, 2017 | B19 * * * * MARKETS Treasurys Drop as Inflation Picks Up Bank Bounce Rising shares of Goldman Sachs Group and JPMorgan Chase pushed the Dow Jones Industrial Average toward its 67th record close of the year. 4% CHARLES MOSTOLLER/BLOOMBERG NEWS 3 BY DANIEL KRUGER The bills, dated Dec. 14, 2017, mature on Jan. 11, 2018. 29-YEAR, 11-MONTH BONDS $29,744,981,800 Applications $12,000,011,800 Accepted bids $7,551,800 " noncompetitively $0 " foreign noncompetitively 98.908728 Auction price (rate) (2.804%) 2.750% Interest rate 8.35% Bids at clearing yield accepted 912810RZ3 Cusip number The bonds, dated Dec. 15, 2017, mature on Nov. 15, 2047. –1 10 11 noon Sources: FactSet Corporate news and higher yields lift sectors; S&P 500 and Dow notch records Dow and the S&P 500 overcome declines in shares of technology and energy companies. Verizon Communications continued to get a boost after it said Monday that it struck a deal to show NFL football games on its mobile network, as well as Yahoo and its other platforms. Verizon climbed 1.35, or 2.6%, to 53.19. Shares of Comcast advanced 1.07, or 2.8%, to 39.51, after the cable and programming firm said it was no longer pursuing an acquisition of media and entertainment assets from 21st Century Fox. Meanwhile, Walt Disney’s talks to acquire assets from 21st Century Fox continued and a deal could be announced as soon this week, The Wall Street Journal reported. 3 4 The Dow Jones Industrial Average and the S&P 500 clinched records, buoyed by shares of banks and other financial firms. TUESDAY’S Bank stocks MARKETS have been rallying in recent weeks as Republicans in the House and Senate work to complete a sweeping tax overhaul this year. Rising government bond yields, which tend to boost bank profits, gave shares of fi- S&P 500’s 60th. The Nasdaq Composite fell 12.76 points, or 0.2%, to 6862.32, snapping a four-session winning streak. Goldman Sachs Group gained $7.55, or 3%, to $257.68, adding about 52 points to the blue-chip index and making it the biggest contributor to the Dow’s point gain. JPMorgan Chase rose 1.23, or 1.2%, to 106.85. Shares of financial stocks in the S&P 500 are up 8.9% this quarter, with much of its gains coming as Republicans have made progress on their tax proposal to make it the bestperforming sector of the broad index so far. A mix of corporate news also pushed telecommunications and media firms higher. The gains among financial and telecom stocks helped both the Shares of 21st Century Fox, which shares common ownership with Wall Street Journal parent News Corp, rose 44 cents, or 1.3%, to 34.10, while Disney gained 60 cents, or 0.6%, to 107.43. Boeing, a big contributor to the Dow’s gains this year, gained 6.78, or 2.4%, to 289.94, after the aerospace giant late Monday said it would boost its quarterly dividend by 20% and raise its buyback authorization to $18 billion. Elsewhere, the Stoxx Europe 600 rose 0.7%, while most indexes in Asia ended the session lower. Japan’s Nikkei 225 lost 1.2% and was down 0.3% at midday Wednesday. Hong Kong’s Hang Seng Index fell 0.6% Tuesday, dragged lower by Tencent Holdings. Early Wednesday, the index was up 0.3%. ly . BY MICHAEL WURSTHORN AND DAVID HODARI nancial firms an added lift on Tuesday ahead of the Federal Reserve’s expected interestrate increase on Wednesday. “Everything right now comes down to policy,” said Eric Wiegand, senior portfolio manager at U.S. Bank Private Wealth Management. “We’ll be watching what [Fed Chairwoman Janet] Yellen might say at her last press conference and any insights going forward. The other fixation in Washington is on the tax bill,” he added, saying that he and other investors are “looking for any signs of negotiations advancing.” The Dow industrials rose 118.77 points, or 0.5%, to 24504.80, while the S&P 500 added 4.12 points, or 0.2%, to 2664.11. It was the Dow’s 67th record close this year, and the Pakistani Rupee Falls as Central Bank Balks Pakistan’s rupee slumped to a four-year low against the U.S. dollar, the latest move downward in an effective devaluation of the currency that had been kept CURRENCIES s t e a d y against the greenback for much of the past two years. The rupee’s slide began Friday and continued after Pakistan’s central bank signaled a drop in its value could help the country’s economic growth. The rupee has fallen 3.7% in the past three trading days, with one U.S. dollar buying 109.45 rupees late Tuesday in New York, compared with 107.50 late Monday. With the exception of a plunge in July, the rupee had held at about 105 to the dollar since late 2015, with the State Bank of Pakistan regularly intervening to maintain the currency’s value by selling down its foreign-currency reserves to buy rupees, analysts said. But the policy has proved difficult to sustain as the country’s trade deficit has widened, thanks to a surge in imports. Net foreign-exchange reserves held by the central bank slumped to their lowest level in at least a year at the end of November. “They have allowed [the rupee] to devalue,” said Umair Naseer, deputy head of research at Topline Securities, a brokerage firm based in Karachi, referring to the central ABDUL MAJEED/AGENCE FRANCE-PRESSE/GETTY IMAGES BY SAUMYA VAISHAMPAYAN A shopkeeper in Peshawar makes garlands with Pakistani rupees and U.S. dollars. The rupee has dropped 3.7% in the past three days. bank. The rupee’s woes stand out in a year in which many emerging-market currencies have performed strongly, thanks to robust global growth and relative dollar weakness as the Federal Reserve refrains from sharp interest-rate increases. The South Korean won has surged 11% this year against the dollar, while the Indian rupee has gained 5.3%. Until recently, Pakistan’s government has resisted calls to allow the rupee to fall, hoping that a stable currency would increase confidence in the South Asian nation’s economy. A steady exchange rate has also been seen as a way to encourage the thousands of Pakistanis who work abroad to send money home. Pakistan received $19.8 billion in foreign remittances in 2016— equivalent to 6.9% of its gross domestic product—making it the fifth-largest destination of such flows globally, according to the World Bank. “A stable currency is seen as an electoral winner…so the authorities have been very reluctant to allow it to sell off,” said Charlie Robertson, global chief economist at Renaissance Capital. Pakistan is set to hold national elections in 2018 and has been plagued by ing houses, producers and consumers. The London Metal Exchange recently said it is planning to launch futures contracts for lithium and cobalt sulfate as early as the start of 2019. Considering the price of both metals has doubled in the last two years, that may be longer than some investors want to wait. The current LME cobalt contract, launched in 2010, is for physically settled refined metal—used as a component in making jet engines. One particularly bullish investor purchased more than a thousand metric tons of physical cobalt and stored it in a warehouse. Investors of more modest means can buy exchange traded funds such as The Global X Lithium & Battery Tech, an ETF that holds shares of lithium miners, as well as electric-car maker Tesla Inc. The fund’s shares are up around 57% this year. political scandals. But a sharp rise in imports in the fiscal year ended in June, driven by increased shipments of petroleum, machinery and transport equipment, and a decline in exports, have led to a widening of Pakistan’s current-account deficit, in which imports exceed exports. The Pakistani rupee could be overvalued by about 25%, Mr. Robertson estimates. Gold Prices Move Lower BY AMRITH RAMKUMAR JULIANA CASTILLA/REUTERS Prices for cobalt, lithium and a host of other lesser known-metals have surged in recent months, driven by growing global demand for electric veCOMMODITIES hicles. Unless you are a miner, metals-trading firm or auto maker, you probably won’t be able to get your hands on any. The metals are key components in electric-car batteries, and demand is expected to explode in the next decade. Of course, plenty could change between now and then. While most investors and analysts agree that demand for electric cars will rise, no one can say with certainty what the batteries used in those vehicles will be made of in 10 years’ time. For now, most lithium and cobalt changes hands between a handful of specialized trad- 2 THE WALL STREET JOURNAL. Electric-Car Battery Metals Offer Some Wagers BY IRA IOSEBASHVILI AND AMRITH RAMKUMAR 1 Financial, Telecom Stocks Gain no FOUR-WEEK BILLS $139,148,294,800 Applications $45,000,306,800 Accepted bids $499,994,300 " noncompetitively $0 " foreign noncompetitively 99.903556 Auction price (rate) (1.240%) 1.258% Coupon equivalent 5.64% Bids at clearing yield accepted 912796ML0 Cusip number Dow Industrials 0 co Fo m rp m e er rs ci on al a us l, e on AUCTION RESULTS Here are the results of Tuesday'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. JPMorgan 1 A Comcast control room in Philadelphia. Shares of the cable and programming firm advanced 2.8%. n- U.S. government bond prices fell after signs that solid economic growth may be starting to generate inflation. The yield on the 10-year Treasury note CREDIT rose Tuesday for MARKETS a fourth consecutive session, settling at 2.403% from 2.387% Monday. Bond yields rise as prices fall. Yields climbed after a gauge of U.S. business prices showed signs of inflation building within the economy. The producer-price index for final demand, which measures changes in the prices that U.S. companies receive for their goods and services, increased a seasonally adjusted 3.1% in November from a year earlier, the Labor Department said Tuesday. That is the biggest jump in nearly six years. Inflation is a threat to longterm government bond prices because it erodes the purchasing power of the debt’s fixed payments. The Labor Department releases data on the consumer-price index Wednesday, which economists expect to rise 0.4% in November from a month earlier. Bond yields have traded in a narrow range recently amid signs inflation remains muted. The Federal Reserve’s preferred inflation gauge rose 1.6% in October from a year earlier, according to the Commerce Department, and the annual inflation reading has remained below the Fed’s 2% target for about 5½ years. Fed officials are expected to raise their benchmark shortterm rate Wednesday by a quarter percentage point to a range between 1.25% and 1.5%. Investors are looking to see whether policy makers raise their projections for three rate increases in 2018. “We’re going to see higher rates and a Fed that’s a bit more aggressive,” said Larry Milstein, managing director of government and agency trading at R.W. Pressprich & Co. Should policy makers signal a desire to raise rates a fourth time in 2018, that could help push the 10-year yield above 2.42%, which served as an upward barrier for several months, and propel the yield into a range of 2.75% to 3% range, he said. Goldman Sachs 2 A brine pool used to extract lithium in Argentina. Demand is expected to soar in the next decade. Glencore is the world’s largest cobalt miner, although it is also a major producer of coal, copper and zinc. Purer plays can be found in smaller companies, most of which seek to mine the metal in Canada and Australia rather than the Democratic Republic of the Congo, where the lion’s share of the world’s cobalt is found. The stock prices of companies such as First Cobalt and eCobalt Solutions have soared this year, although their small market capitalization would make them undesirable for many investors. Gold prices fell for a fourth straight session with the Federal Reserve beginning its final meeting of the year. Gold for February delivery declined 0.4% to $1,241.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices recently have fallen to their lowest level since July, weighed down by a rebounding dollar and investor concerns over higher interest rates. A dollar-denominated commodity, gold becomes more expensive for overseas buyers when the U.S. currency grows stronger. It also struggles to compete with yield-bearing assets like Treasurys as borrowing costs rise. The Fed is widely expected to announce a third rate increase of 2017 following the conclusion of its two-day meeting Wednesday. 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. B20 | Wednesday, December 13, 2017 THE WALL STREET JOURNAL. MARKETS Quicker Fed Pace Could Rattle Markets By Ben Eisen, Daniel Kruger and Chelsey Dulaney 101.5 Financial conditions have loosened since the Federal Reserve began raising rates. Stocks have gained, the dollar has weakened and the yield on the 10-year Treasury has recently stalled near 2.4%. 101.0 Goldman Sachs Financial Conditions Index 100.5 100.0 LOOSER FINANCIAL CONDITIONS 99.5 99.0 98.5 2015 2016 2017 S&P 500 WSJ Dollar Index Yield on 10-year Treasury note 2600 94 2.6% 2.4 92 2400 2200 2000 2.2 90 2.0 88 1.8 1.6 86 1.4 84 1800 2015 ’16 ’17 1.2 2015 ’16 ’17 2015 ’16 ’17 Effective fed funds rate, monthly Expectations for level of fed funds rate in December 2018 6% 3.5% 5 3.0 4 Fed’s summary of economic projections WSJ survey of economists 2.5 3 2 co Fo m rp m e er rs ci on al a us l, e on shock if the central bank decides to ramp up the pace of rate rises next year. The Goldman Sachs Financial Conditions Index, a widely watched measure of how easily money and credit flow through the economy via financial markets, was this month at its lowest level since 2014. Financial conditions are now looser than they were before the Fed began lifting rates in 2015. Typically, the prospect of Fed rate increases tightens financial conditions by pushing up borrowing costs for companies and governments, lifting the value of the dollar against its peers and restraining a rise in the stock market. That hasn’t happened this time around. Two years into the Fed’s rate-rise cycle, stocks have been on a nearly uninterrupted climb and longer-term Treasury yields have barely budged and lingered near the technically important level of 2.4% for much of the past few months. The WSJ Dollar Index, a measure of the U.S. currency against 16 peers, is down 3% from its December 2015 level. Markets have rewarded investors who continued to take risks in large part because the Fed has lifted rates more slowly than in past cycles. After this week’s expected increase, the Fed will have lifted rates just five times in two years. By contrast, the Fed’s last tightening cycle stretched over a total of two years and included 17 increases. The Fed has been slow to move this time because the TIGHTER TIGHTE TIG HTER HTE R FINANC FIN ANCIAL ANC IAL FINANCIAL CONDITION CON IONS S CONDITIONS ly . Investors have greeted the Federal Reserve’s recent string of interest-rate increases with some of the most docile market conditions in years, a sign that they could be in for a 2.0 1 1.5 0 2004 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 2015 ’16 ’17 Sources: Goldman Sachs Global Investment Research (conditions index); WSJ Market Data Group (S&P, dollar); Ryan ALM (yield); Board of Governors of the Federal Reserve System (effective rate); Federal Reserve (projections); WSJ (survey) economy and financial markets have shown few signs of overheating. Though there are concerns in some corners that the prices of stocks and other assets have climbed too far, the economy has been muddling along and inflation re- mains below the Fed’s annual target of a 2% rise. That raises concerns about whether financial conditions will tighten abruptly if the Fed opts to lift rates at a faster pace in the new year. Jerome Powell is expected to take the helm of the central bank in 2018 and could shift course, particularly with a new batch of policy makers expected to favor faster rate increases. If inflation begins to accelerate next year, the pace of rate increases also could pick up, economists say. Investors and central bankers had a long face-off with very divergent expectations about how quickly growth and inflation would pick up and how much policy makers would need to do to address THE WALL STREET JOURNAL. improving conditions. After lowering their forecasts throughout 2016, Fed officials stuck to their guns in 2017, and the market has moved toward the Fed’s more recent, and less aggressive projections. HEARD ON THE STREET Email: email@example.com WSJ.com/Heard FINANCIAL ANALYSIS & COMMENTARY Shareholder returns, including dividends reinvested, in local currencies 300% Simon Property Unibail-Rodamco Westﬁeld 200 Hammerson GGP 100 0 –100 2008 ’09 no Toshiba and Western Digital have finally realized it is better to have an ally than an enemy in the memory-chip industry. The two companies, which own a joint venture that produces NAND flash-memory chips used to store data, have agreed to settle their dispute over Toshiba’s planned $18 billion sale of its memory-chip unit, according to The Wall Street Journal. Western Digital, which inherited a decadelong relationship with the Japanese technology conglomerate after its acquisition of SanDisk in 2015, has insisted it has veto rights over any sale of the unit. Western Digital may have hoped Toshiba’s financial woes would give it an upper hand in negotiations. But the $5.3 billion cash infusion Toshiba received from dozens of hedge funds last month has dashed that hope. The capital Toshiba raised means the sale of its memory-chip business is no longer so urgent. Rather than dragging the matter through litigation, Toshiba and Western Digital are right to focus their time and money on upgrading their technology. The two combined have a similar market share in NAND as industry leader Samsung Electronics. Samsung, however, has stayed far ahead in the production of 3-D NAND chips, which use stacking to enhance capacity. According to their settlement, Toshiba and Western Digital will continue to share the burden of the substantial investment required to stay in the race with Samsung. A tough battle still lies ahead, but at least the two partners are in it together. —Jacky Wong UniCredit Is Good Wager on Europe’s Banking Recovery Store of Value n- Chip Makers Should Gain From Truce ’10 ’11 ’12 Sources: FactSet ’13 ’14 ’15 ’16 ’17 THE WALL STREET JOURNAL. Westﬁeld shopping mall in West London, U.K. Deal Brews in U.S. Malls An octogenarian Australian billionaire wants to sell a chunk of his key U.S. and European assets as technology upends their future. The company is currently headed by two of his children as cochief executives, but now they seem to want to go separate ways. This isn’t the story of Rupert Murdoch’s talks to sell 21st Century Fox to Walt Disney, but that of Frank Lowy and his Westfield Group. Unibail-Rodamco, Europe’s largest real-estate investment trust, said Tuesday that it had agreed to pay $15.7 billion for the U.S. and U.K. mall owner—a figure that rises to $24.7 billion when debt is included. The deal would create a trans-Atlantic giant. It is a bet that the megamall has a future despite the encroachment of online retail. Deals only happen because of differences of opinion on the value of assets, and right now the future of malls is ripe for debate. The Lowys are tiptoeing out of the business while Unibail is betting the equivalent of its entire equity value on it. A similar divergence of opinion explains Brookfield Property Partners’ $14.8 billion offer for the shares it doesn’t already own in mall owner GGP. Both bids work out at roughly a 30% discount to the targets’ share-price peaks in mid-2016. The offer is supported by the Lowys even though only 35% of it comes in cash; the rest is Unibail stock. Based on Monday’s closing price, it worked out at $7.55 per Westfield share, a 18% premium to the last trading price. But Unibail stock slipped 4.1% Tuesday, depressing the implied offer price. Unibail’s offer for Westfield represents a bet that megamalls still have a future. The structure is reminiscent of the 2007 all-share merger that brought together French landlord Unibail with its Dutch peer Rodamco. The deal was successful in part because payment in stock meant Unibail entered the 2008 property crash with a robust balance sheet. This and an obsessive attention to reducing its cost of debt explain why Unibail has been a star performer among shopping center stocks. Its bid for Westfield is cleverly engineered to resemble the Rodamco deal, but it is financially riskier. The cash component would push its debt load up to at least 39% of the value of its assets, from 33% at the end of June. And that counts the planned issuance of €2 billion ($2.4 billion) in subordinated “hybrid securities” as equity, rather than debt. The European giant gets a foothold in the U.S., and the Westfield label—arguably the only one that a mall owner has ever turned into a consumer brand. The Lowys get an honorable retirement plan: about $527 million in cash, a stake in a more diverse portfolio and the brand they have nurtured emblazoned across Europe. Frank Lowy will be chairman of a new advisory board; one of his sons will join Unibail’s supervisory board. But the Lowys only own 9.5% of Westfield. Other shareholders, who have a history of opposing the Lowys in past deals, need to decide where they stand. Those with doubts about the future of megamalls get something of a premium exit. More bullish investors may wonder if Frank Lowy has undersold. —Stephen Wilmot The threat of higher capital charges isn’t over for European banks, but Italy’s biggest lender can take this in stride. Europe’s lenders got a good result in the end from the long battle to tighten global capital rules that ended last week. However, lesser-noticed new guidelines on how to recognize losses on loans that are turning sour will hit capital. UniCredit, Italy’s largest bank by assets, highlighted this in its strategy update Tuesday. It expects the guidelines, which were issued in November by the European Banking Authority, the region’s standard setter, to cut 1.8 percentage points from its common equity capital ratio by 2021. That is more than double the hit it expects from the tightening of the global capital rules known as Basel III. The new guidelines are designed to reduce differences in how European banks calculate expected losses on souring debts. One of the main effects will be to force large banks to recognize losses more quickly, particularly in markets where recovery processes can take years, such as Italy. UniCredit’s view of the charge was one dampener on an otherwise upbeat review of Chief Executive JeanPierre Mustier’s balancesheet cleanup strategy that launched a year ago. Recognizing the cost of the new guidelines now limits the bank’s dividend paying power slightly. The bank will lift its payout from 20% to 30% of earnings in 2019. Analysts at UBS Group had expected a level closer to 50%. However, UniCredit has already proved a winning trade for investors who backed its aggressive cleanup plan launched this time in 2016; the stock is up 46% since then. Mr. Mustier improved some of his targets Tuesday. More bad loans will be shifted by the end of 2019— an extra €4 billion ($4.7 billion) on top of the €30 billion cuts targeted. UniCredit will also wind down all the bad and unwanted assets in its noncore unit to zero by 2025. The bank will do this while still reaching a 12.5% common equity ratio in 2019 and absorbing the unexpected cost of the EBA guidelines. A lot has improved in Italian banking in the past year and at UniCredit in particular. However, its stock still trades at less than 70% of forecast book value, which undervalues its expected 9% return on equity in 2019. For investors, UniCredit should still be one of the recovery plays of choice in Europe. —Paul J. Davies Right Direction Relative one-year price UniCredit performance Intesa Sanpaolo Stoxx 600 Banks 50% 40 30 20 10 0 –10 2017 Sources: FactSet THE WALL STREET JOURNAL.