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The Wall Street Journal December 13 2017

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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
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
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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.
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
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
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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 wsjcontact@wsj.com or by calling 888-410-2667.
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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
|
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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
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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
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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.
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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:
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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
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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
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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
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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
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Capital Gains on the Sale of a Home: Retain current law on
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Home Mortgage Interest Deduction: Retain current law
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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
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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.
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A8B | Wednesday, December 13, 2017
THE WALL STREET JOURNAL.
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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
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THE WALL STREET JOURNAL.
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
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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.
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A12 | Wednesday, December 13, 2017
THE WALL STREET JOURNAL.
* ****
IN DEPTH
no
eral
Energy
Regulatory
Commission and Securities and
Exchange Commission.
One 369-word comment supporting the Obama-era net-neutrality rules was posted on the
FCC website more than 300,000
times. 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
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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
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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.
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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
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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.
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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!’ ”
anne.kadet@wsj.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
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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 wsjcontact@wsj.com 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
jfusilli@wsj.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
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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
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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
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
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
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.
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
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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
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Portland
Helena
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Eugene
20s
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30s
Billings
10s
10s
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Ottawa
Bismarckk
30s
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Montreal
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40s
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30s
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60s
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U.S. Forecasts
20
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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
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64 s
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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
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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
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44 31 pc
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57 44 sh
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44 34 sh
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43 35 c
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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
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Milwaukee
Detroit
Buffalo
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Jack
Jackson
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50s
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Austin
10s
Stationary Snow
t
Houston
20s
l d
Orlando
ew Orleans
New
Tampa
an Antonio
San
70s 80s
40s
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14
50s
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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
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
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;
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EDITORIAL AND CORPORATE HEADQUARTERS:
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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
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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:
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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
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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
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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
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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.
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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,
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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
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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.
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | 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
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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
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‘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.
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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
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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
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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
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THE WALL STREET JOURNAL.
B8 | Wednesday, December 13, 2017
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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
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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.
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INSIGHTS
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B10 | Wednesday, December 13, 2017
THE WALL STREET JOURNAL.
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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
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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
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er rs
ci on
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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
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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
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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
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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
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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
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2.2
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5.2
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0.85 –14.8
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55.44
62.31
268.63
188.30
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11.96
120.98
87.33
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106.40
71.88
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105.76
110.40
134.28
148.42
124.18
183.25
150.88
125.67
157.81
206.88
88.69
215.03
152.87
114.04
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113.69
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105.75
126.38
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101.66
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36.78
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245.44
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132.13
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155.54
85.83
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87.41
122.58
153.86
110.91
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136.95
73.69
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64.86
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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
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38.10
145.69
21.30
29.78
26.92
44.35
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206.66
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56.83
68.50
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0.72
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25.24
19.45
25.80
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52-Wk %
Sym Hi/Lo Chg
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52-Wk %
Sym Hi/Lo Chg Stock
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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
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SS&C Tech
SSNC
SchwabC
SCHW
ScottsMiracleGro SMG
SecondSightWt EYESW
SensataTech
ST
SiebertFin
SIEB
SigmaDesigns
SIGM
Sigmatron
SGMA
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SKX
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USAT
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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
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52-Wk %
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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-
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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:
humanresources@endicott.edu
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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
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& 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
ehedrick@pcrmc.com
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Travel tip: comfortable feet make everything
more fun. The Un-Sneaker combines the comfort
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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
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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
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+ , ' OHIO
CALIFORNIA
NEW YORK
! " #$ %& '
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(800) 366-3975
sales.realestate@wsj.com
For more information visit: wsj.com/classifieds
© 2017 Dow Jones & Company, Inc. All Rights Reserved.
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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
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
no
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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
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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: heard@wsj.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.
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