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The Wall Street Journal December 16 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.
Room With
A Digital
Preview
Mr. Trump’s
Traffic
Problem
REVIEW
OFF DUTY
VOL. CCLXX NO. 142
WEEKEND
* * * * * * * *
HHHH $5.00
WSJ.com
SATURDAY/SUNDAY, DECEMBER 16 - 17, 2017
GOP Poised to Pass Tax Overhaul
Two holdout senators
say they will support
the bill, clearing way
for votes next week
A judge blocked administration birth-control rules that
create broad exemptions for
employers that oppose contraceptive health coverage. A2
Trump said he wouldn’t
“yet” discuss whether he
would pardon ex-national
security adviser Flynn. A5
A U.S. Army study found
flaws in the decisive battle
to retake Mosul from Islamic State militants. A6
Tillerson said North Korea must “earn its way” back
to the negotiating table by
ceasing nuclear tests. A6
A Russian court sentenced
a former economy minister
to eight years in prison for
taking a $2 million bribe. A7
The number of people applying to law school for next
fall is up nearly 12% compared with a year earlier. A3
Business & Finance
The Trump administration
is advancing a strategy that
could derail Boeing and Airbus efforts to sell hundreds
of jets to Iranian airlines. A1
P&G said it would add activist investor Peltz to its
board, ending weeks of intrigue after a proxy fight. A1
CSX lost about $4 billion in market value after
the railroad’s CEO was
placed on medical leave. B1
MetLife said it had failed
to pay monthly pension
benefits to possibly tens of
thousands of retirees. B1
U.S. Mulls
Plan That
Threatens
Boeing’s
Iran Deals
Silver Lake is backing
Broadcom in its hostile bid for
Qualcomm, an unusual move
for a private-equity firm. B1
U.S. stocks rose on expectations that the tax bill
will pass. The Dow climbed
143.08 points to 24651.74. B11
Lockheed said it is considering a joint venture
with Aerion to build a supersonic business jet. B2
Harvard will spin out its
real-estate investment team
into a new unit of Bain. B4
Inside
WASHINGTON—The Trump
administration is advancing a
strategy that could derail efforts by Boeing Co. and Airbus
SE to sell hundreds of jetliners
to Iranian airlines, U.S. officials said.
The two aerospace giants
have lined up deals over the
past 15 months that have been
left in limbo as the White
House reassessed its Iran policy and has threatened to walk
away from an international nuclear deal if Congress and European partners don’t address
concerns, with only a handful
of Airbus planes so far delivered.
Any effort to scuttle these
deals, by accident or design,
could have far-reaching consequences, both for the nuclear
accord and the jet makers. Under the 2015 nuclear deal, Iran
agreed to curb its nuclear program in exchange for significant sanctions relief, and supporters of the accord fear it
would fall apart if Iran doesn’t
see the benefits it was promised.
President Donald Trump’s
team hasn’t yet presented him
with options for addressing
the sales, but months of interagency discussions have grown
Please see IRAN page A6
Airbus plans for ‘orderly
succession’................................... B3
NOONAN A13
Alabama
Teaches America
A Lesson
CONTENTS
Business News.. B3,9
Design & Decor... D1,4
Food......................... D8-9
Heard on Street...B12
Obituaries................. A8
Opinion............... A11-13
BOOKS OF THE
Sports....................... A10
Style & Fashion D2-3
Travel....................... D6-7
U.S. News............ A2-5
Weather.................. A10
Wknd Investor....... B4
World News....... A6-8
YEAR..... C5-C16
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
CURRENT 2018
Married, filing jointly
PROPOSED 2018
CURRENT 2018
Income
Income
Rate
Rate
Income
Over $426,700
39.6%
37%
Over $500,000
35% $200,001-500,000
$424,951-426,700 35%
$195,451-424,950
33%
$93,701-195,450
28%
$38,701-93,700
25%
32% $157,501-200,000
10%
Up to $9,525
39.6%
$424,951-480,050 35%
$237,951-424,950 33%
Rate
Income
37%
Over $600,000
35% $400,001-600,000
32% $315,001-400,000
$156,151-237,950 28%
24%
22%
$82,501-157,500
12%
10%
$9,526-38,700
$77,401-156,150
25%
$19,051-77,400
15%
Up to $19,050
10%
$38,701-82,500
15%
$9,526-38,700
Over $480,050
PROPOSED 2018
Rate
Up to $9,525
24% $165,001-315,000
22% $77,401-165,000
12%
10%
$19,051-77,400
Up to $19,050
Sources: Internal Revenue Service (current); Conference Committee (proposed)
THE WALL STREET JOURNAL.
picked up the backing of Sens.
Marco Rubio (R., Fla.) and Bob
Corker (R., Tenn.). Mr. Corker
was the only Republican who
voted no on the Senate’s first
version. The bill needs a simple
majority to clear the 100-member Senate and Mr. Corker’s
support makes it possible that
Republicans could get 52. The
House will vote first, on Tuesday, and the Senate could follow
as soon as Tuesday night to
send it to President Donald
Trump’s desk.
The bill largely follows an
BY LAURA SAUNDERS
The dream of tax simplicity
is proving elusive.
In 2016, as Republican lawmakers kicked off one of the
largest tax reform drives in
our
country’s
history,
they
TAX
REPORT
said the overhaul would bring
“Simple,
Fair
‘Postcard’ Tax Filing” for
many. They promised to reduce the income-tax return to
14 lines for many filers and to
“simplify the broken tax code.”
Now that the finish line is
near, with Congress poised to
enact reform within a week,
whether you get a simpler tax
filing depends largely on who
you are.
Tens of millions of wage
Please see FILING page A4
outline Republicans had been
working off all year, marked by
a sweeping overhaul of the regime for business taxation and
Please see TAXES page A4
Heard on the Street: Gauging
the value of a tax cut........ B12
Anatomy of a Mission: U.S. Study Finds Flaws in Mosul Assault
BY FELICIA SCHWARTZ
AND IAN TALLEY
no
KKR is buying Unilever’s
margarine and spreads business in a deal that values
the unit at $8.03 billion. B1
WASHINGTON—Republicans stood on the verge of delivering the most significant
changes to the U.S. tax code in
more than three decades, after a
series of last-minute deals appeared to remove the last big
obstacles to passage next week.
The plan would deliver $1.5
trillion in tax cuts over a decade
and reorder large chunks of the
U.S. economy. The GOP, ending a
year in full control of the Congress and White House, is delivering lower tax rates for individuals, business owners and
corporations. However, those individual cuts would expire after
2025, the end of some deductions will sting residents of
high-tax states and independent
analysts say the plan will increase budget deficits.
On Friday, Republicans
Unmarried individuals
What’s Simple
For Some Is
Complicated
For Others
TACTICAL CRITIQUE: A new U.S. Army study of American military units in the battle for Mosul against Islamic State militants identified
significant deficiencies such as the response to drone threats, the reliance on private contractors and inadequate training for urban warfare. A6
One Striver’s Small-Town Regrets
Caity Cronkhite chased opportunity far from Kingman, Ind.; now she sees what she left behind
BY MICHAEL M. PHILLIPS
KINGMAN, Ind.—It took months for
Caity Cronkhite to get up the nerve to
go home again.
Ms. Cronkhite, 27 years old, had
stormed out of Indiana after graduating from high school a year early,
searching for horizons wider than a
town of 500 residents could offer.
She found a life in the San Francisco
Bay Area, where her friends were
sometimes jarringly different from
people back home. And despite the distance and time away, she couldn’t
leave behind Kingman’s dramas—who
was on food stamps, who got arrested,
who overdosed. She found herself still
admired by some for getting out, and
vilified by others for her angry exit.
In the yawning divide between
America’s urban and rural communities, Ms. Cronkhite struggled with the
push and pull of both.
Peer Pressure Defined: Shrinking the House of Lords
i
i
i
Parliament wants to cut 200 members; ‘a kick up the backside’
BY JENNY GROSS
LONDON—The U.K.’s House
of Lords has been called a lot of
things over the years. “Swift” or
“decisive” are seldom among
them.
Yet these days, the nearly
800 members of the upper
house of Parliament have been
roused by a pressing yet unpleasant task. They must figure
out how to get rid of some of
their colleagues.
A set of proposals to downsize the unelected body known
for civility, endless debate and
NOE FALK NIELSEN/NURPHOTO/ZUMA PRESS
ACA enrollments are expected to fall from last year
due to a shorter sign-up window, likely leading to higher
insurance premiums. A4
BY RICHARD RUBIN
AND SIOBHAN HUGHES
Republicans’ proposed tax revisions would mean new rates and thresholds for millions of tax filers.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
T
he GOP appeared
poised to deliver the
most significant changes to
the U.S. tax code in more
than three decades after a
series of last-minute deals. A1
n-
World-Wide
Rates and Brackets
ly
.
What’s
News
afternoon tea
we would not
has set off a
miss them belord-againstcause they conlord scramble to
tribute nothmaintain meming,”
says
bership in one
William Bradof the world’s
shaw, an 81most pampered
year-old lord.
legislative bodThe Counties. The talk has
ess of Mar, 77,
turned decidsays she has
edly uncivil—fogrown resentful
A lord
cusing on the
of some of her
sensitive topic of, well, who is fellow lords. “There are people
actually working.
who come here, read the news“There are some people here paper and have a snooze,” says
Please see LORDS page A8
who, if they never came again,
Ms. Cronkhite and her boyfriend arrived in Indianapolis this summer on
the red-eye from California. Her father
drove them the 80 miles to Kingman.
They stopped at Cracker Barrel for
breakfast, like old times. They followed
Kingman’s main street, still and quiet
in the way of no-stoplight towns whose
best days are past.
They passed the Oasis ice cream
stand, where Ms. Cronkhite ordered
Please see TOWN page A9
P&G Concedes Defeat,
Gives Peltz Board Seat
BY SHARON TERLEP
AND DAVID BENOIT
Procter & Gamble Co. said
Friday it would add activist investor Nelson Peltz to its
board, ending weeks of intrigue after the biggest and
most expensive proxy battles
ever fought essentially finished with a tie.
The consumer-products giant said an official vote tally
showed its 11 directors were
re-elected but Mr. Peltz won
nearly 50% of the votes cast by
shareholders for one of those
seats. Following discussions
with the billionaire, the company agreed to add him to the
board starting March 1.
After months of debate and
furious campaigning by both
sides, shareholders sent a message that the Cincinnati giant
needed to move faster to improve its results but were
evenly split on whether it
needed the activist inside the
boardroom. The vote kept flipping with each count because
of the razor-thin difference.
At an October shareholder
Please see P&G page A5
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 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* *****
U.S. NEWS
Birth-Control Rule Is
Temporarily Blocked
THE NUMBERS | By Jo Craven McGinty
A federal judge in Pennsylvania has temporarily blocked
implementation of the Trump
administration’s new birth-control rules, which create broad
religious and moral exemptions
for employers seeking not to
provide employees contraceptive health coverage.
U.S. District Judge Wendy
Beetlestone became the first to
move on the new rules, which
were issued in October and immediately implemented. The
rules created a sweeping exemption for employers who object to the Obama-era mandate
that employers must cover contraception without copayments
or other out-of-pocket costs.
The judge, appointed by
former President Barack
Obama, said the exemptions
the administration created to
the contraceptive mandate
were likely unlawful because
they were too broad and had
been implemented using improper procedures.
Trump
administration
health officials hadn’t provided
a compelling reason why the
rules should take effect immediately rather than going
Once autumn leaves
are down,
landscapers
with leaf
blowers
strapped to their backs pour
into America’s neighborhoods like hornets from a
hive.
Which raises an interesting question: How much
pollution does a leaf blower
emit?
If it’s gas-powered, the
short answer is more than a
car, a truck or any other
modern passenger vehicle.
But because vehicles outnumber the nation’s 12 million leaf blowers by about
224 million, they still beat
out the dirtier engines in
total emissions.
“These small engines are
notoriously high polluters.
But because there are fewer
of them compared to cars
and trucks, they don’t emit
as much total pollution,”
said John Volckens, a professor of mechanical engineering at Colorado State
University.
The U.S. Environmental
Protection Agency and Quiet
Communities, a nonprofit
that advocates for quieter
and cleaner lawn maintenance, estimated that in
2011 there were nearly 11
million leaf blowers and
vacuums in the country, a
figure they projected would
grow to about 12 million by
2018.
The EPA has regulated
leaf blowers and other
small, nonroad spark-ignition engines since 1997. The
machines are divided into
two categories: hand-held
equipment, such as leaf
blowers and chain saws; and
non-handheld equipment,
such as lawn mowers and
generators.
Emissions standards limit
how many grams of carbon
monoxide, nitrogen oxides
and hydrocarbons the engines can produce per hour,
taking the size of the engine
into account. The pollutants
are measured in laboratory
tests that simulate how the
engines would be used in
the real world.
Blowing Leaves, and Pollution
Smoke Signals
Here are the actual U.S. emissions inventory estimates for 2014 in U.S. tons
Emissions Categories*
Small Nonroad Spark-Ignition Engines
(Leaf blowers, string trimmers, chain saws and
other engines at or below 25 horsepower)
Onroad Light-Duty Vehicles
(Passenger cars, SUVs and light trucks)
Total U.S. Emissions
(Includes additional emissions categories and is not
a sum of the previous rows)
NOx
VOC
PM2.5
CO
137,545
973,597
43,442
10,651,229
2,289,305
14,455,000
1,811,376
59,301
20,029,797
55,239,000 6,248,000 70,089,000
Source: Environmental Protection Agency
*NOx = Nitrogen Oxides, VOC = Volatile Organic Compounds, PM2.5 = Particulate Matter 2.5 micrometers or
less in size, CO = Carbon Monoxide
The California Environmental Protection Agency
estimated that operating a
commercial leaf blower for
one hour would emit more
pollution than driving a
2016 Toyota Camry for
about 1,100 miles.
Overall, EPA figures show
that the small, nonroad
spark-ignition engines contribute 1% of nitrogen oxides to total U.S. emissions,
compared with 16% contrib-
The reason leaf
blowers are so dirty is
because many use
two-stroke engines.
gine rotates the crankshaft
once in one cycle of internal
combustion, producing
power every second stroke.
A four-stroke engine rotates the crankshaft twice in
one cycle of internal combustion, producing power
with every fourth stroke.
Four-stroke engines are
more efficient, but twostroke engines are inexpensive and pack more power.
They also run in any position—even sideways or upside down—a feature made
possible by the way they
are lubricated.
Four-stroke engines must
operate in a generally upright position because their
lubricating system would
spill oil if the engine were
turned upside-down
Two-stroke engines lack a
separate lubrication system;
their oil is mixed in with
the gasoline used for fuel.
Some of it lubricates the engine, and some of it burns
up, but a significant amount
escapes through the exhaust.
All gasoline engines expel
some unburned fuel in their
exhaust, but two-stroke engines release a higher percentage.
Still, improvements in
recent years have reduced
emissions, according to
George Klein, an outdoorpower-equipment instructor
at Walla Walla Community
College in Washington state.
New ignition systems
help two-stroke engines
crank more easily, idle at
slower speeds and acceler-
uted by passenger cars; 2%
of volatile organic compounds, compared with 3%;
15% of carbon monoxide,
compared with 29%; and 1%
of particulate matter, the
same amount as passenger
cars. The data, which are
the latest available, are
from 2014.
The pollutants contribute
to a variety of health problems and cause smog, acid
rain and other environmental hazards.
T
he reason leaf blowers and related devices are so dirty is
because many use twostroke engines.
Stroke refers to the distance a piston travels in its
cylinder. A two-stroke en-
ate more quickly, contributing to reductions in exhaust, Mr. Klein said.
Synthetic oils burn better
and allow the engines to operate with less oil in the
fuel mixture. And new
styles of engines use buffers
of air to reduce fuel losses.
Today, two-stroke engines
are up to 85% cleaner than
before the emissions were
regulated.
N
onetheless, communities such as Palm
Springs, Calif. and
Maplewood, N.J., have
banned gas-powered leaf
blowers because of concerns
over noise and pollution
that is emitted in front
yards, according to Jamie
Banks, the executive director of Quiet Communities.
She and her organization
have counted at least 107
communities with different
levels of restrictions.
The National Association
of Landscape Professionals
opposes efforts to ban the
gas-powered machines and,
in some cases, the industry
is fighting back.
The New Jersey Landscape Contractors Association and nine individual
landscape companies filed a
civil suit in October claiming Maplewood’s ban discriminates against the businesses because residents
and some other groups can
still use gasoline-powered
leaf blowers.
Why should they turn
over a new leaf, they argue,
when others don’t have to.
ly
.
through a more typical public
comment period, she said.
Officials in other states, including California, have also
sued the administration over
the contraception rules.
The Pennsylvania suit was
filed by state Attorney General
Josh Shapiro.
The administration in October issued two separate rules:
one for religiously affiliated institutions such as Catholic hospitals, charities and universities;
and
another
for
nonreligious employers who
voiced moral, rather than theological, objections to contraceptive coverage.
The administration concluded that because free or
low-cost contraception was
widely available through various other means, including
government programs, there
was no compelling need for the
government to override religious beliefs.
The Department of Health
and Human Services on Friday
referred questions on the lawsuit to the Justice Department.
A spokesman for the Justice
Department, which is defending the rules, didn’t respond to
a request for comment.
co Fo
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ci on
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on
BY MICHELLE HACKMAN
HOW DOES YOUR
JEWELRY MAKE YOU FEEL?
COURTS
SAN FRANCISCO
Sexual-Harassment
Probe of Judge Set
Crime-Fighting Robot
Gets Taken Off Duty
Alex Kozinski, a prominent
federal appellate judge, is under
investigation following sexualharassment allegations from former law clerks.
The chief judge of the Ninth
U.S. Circuit Court of Appeals initiated a judicial misconduct
complaint Thursday against
Judge Kozinski, citing reporting
from the Washington Post and
other articles.
Six former Ninth Circuit clerks
or externs told the paper that
Judge Kozinski made inappropriate, sexual comments at work,
including calling one clerk into
his chambers multiple times to
show her pornographic images
and ask if they turned her on.
Judge Kozinski, who is based
in Pasadena, Calif., declined to
comment Friday. Last week, he
told the Post that he would
“never intentionally do anything
to offend anyone.”
—Sara Randazzo
Last month, the San Francisco Society for the Prevention
of Cruelty to Animals deployed a
400-pound robot to help combat a sharp rise in car break-ins
and other crime at one of its animal shelter facilities here.
On Thursday, the Knightscope
K5 was benched amid complaints that it was being used to
harass the neighborhood’s sizable homeless population.
The shelter’s officials said in
local news reports that break-ins
and discarded drug needles had
decreased at the campus after
the robot was deployed. The
white, Weeble-shaped robot
rolled along snapping photos
that it relayed to human guards.
“It’s scaring a lot of homeless,
because they think it’s taking
pictures of them,” said Moon
Tomahawk, an unemployed 38year-old man who frequents the
homeless encampments nearby.
The SPCA said it was pulling
the plug on the K5 after the facility became the target of vandalism and threats over complaints the homeless were being
victimized.
—Jim Carlton
SAN FRANCISCO MAYOR MOURNED: The casket of Edwin Lee,
who died suddenly Tuesday, is carried into City Hall, where his
body lay in repose in the rotunda. A public memorial is Sunday.
ECONOMY
Energy Sector Lifts
Industrial Production
U.S. industrial production rose
slowly in November, with the increase entirely from a post-hurricane recovery in oil and gas extraction.
Industrial production—a measure of output at factories,
CORRECTIONS AMPLIFICATIONS
One of a kind
Emerald and Diamond
Collection
NEW YORK - PORTO MONTENEGRO
(212) 371-7050
www.misahara.com
In collaboration with
The WSJ U.S. prime rate of
4.50%, the federal funds discount rate of 2.00% and the
federal funds target rate of
1.25-1.50% became effective
Thursday, Dec. 14, 2017. The
readers’ notes on the “Money
Rates” table and the “Consumer Rates and Returns to
Investor” table published in
Thursday’s Business & Finance
section incorrectly said the
rate changes were effective on
Wednesday.
A World News article
Thursday about U.S. Mideast
policy said Iran’s military expansion in the Middle East is
of increasing concern in Washington, Tel Aviv and Riyadh.
While Israel’s military is based
in Tel Aviv, the country considers Jerusalem to be its capital.
The title of the 2005 film
“V for Vendetta” was incorrectly given as “V is for Vendetta” on Thursday in a Life &
Arts article about the television drama “Gunpowder.”
The Senate tax-overhaul
package would curb tax deductions on debt carried by U.S.
affiliates of multinationals as
well as U.S. companies. A Dec.
1 Business News article about
how U.S. tax-overhaul proposals affect foreign companies
incorrectly said U.S. firms
were excluded.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
mines and utilities—rose a seasonally adjusted 0.2% in November from the prior month, the
Federal Reserve said Friday. This
was slightly below the 0.3% rise
forecast by economists.
October industrial production
was increased to a 1.2% gain
from an initial estimate of a
0.9% increase.
From a year earlier, industrial production rose 3.4% in
November.
Capacity utilization, a measure of slack in the industrial
economy, increased 0.1 percentage point to 77.1% in November.
—Sarah Chaney
SANTIAGO MEJIA/ASSOCIATED PRESS
no
n-
U.S. WATCH
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THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | A3
* * * *
DREW ANGERER/GETTY IMAGES
U.S. NEWS
Attack Prompts Questions
About ISIS Material Online
BY ZOLAN KANNO-YOUNGS
AND SCOTT CALVERT
Akayed Ullah, the 27-yearold Bangladeshi who allegedly
tried to set off a bomb in one
of New York’s busiest transit
hubs this week, accessed radical Islamic teachings through
everyday internet searches,
according to law-enforcement
officials.
Mr. Ullah told investigators
that he read al Qaeda’s propaganda magazine, Inspire, according to two senior law-enforcement
officials,
and
learned online how to build
the pipe-bomb he strapped to
his body and detonated Monday, injuring three passersby
and himself.
He didn’t go through encrypted websites, officials said
based on the investigation thus
far. Instead they believe he
found the materials easily
through ordinary browser
searches. That pattern fits with
other recent suspects in terrorist attacks, according to officials. In October, an Uzbek im-
migrant charged with carrying
out a truck attack that killed
eight in New York closely followed instructions laid out in
an issue of Islamic State’s magazine, Rumiyah, according to
prosecutors.
How Mr. Ullah was radicalized is important to law enforcement because of recent
terror plots by lone-wolf actors
like Mr. Ullah. Counterterrorism efforts like intercepting
communication and financial
transactions work when investigating a group but they are
not as effective when a suspect
is a lone-wolf actor, police said.
New York police are concerned about how easily these
materials are available, saying
that tech companies like
Google, and academics that
host copies of the information
on their websites should take
responsibility and stop providing access. New York Gov. Andrew Cuomo has also called on
internet companies to better
police their content.
“You err on the side of free
speech but some of this stuff,
there’s no erring,” said Stephen Davis, New York Police
Department deputy commissioner of public information.
“It’s crystal clear that this has
one and only one purpose. You
can’t make the argument that,
well, maybe some scientist
wants to learn this.”
Aaron Zelin, an expert in extremist Islamic terrorists who
manages a website called Jihadology that posts editions of
Inspire and Rumiyah, said restricting extremist information
on the internet won’t make
much difference.
“Most jihadis get their content from the accounts that
[Islamic State] pushes out,”
said Mr. Zelin, a fellow at the
Washington Institute for Near
East Policy, a think-tank with
no affiliation to Jihadology.
“The reality is if I stop publishing my website tomorrow,
there will still be people trying
to plan attacks.”
His website and others have
posted an issue of Inspire that
has a section titled, “Make a
bomb in the kitchen of your
Mom.” The section has instructions for constructing a bomb
that one senior law-enforcement official said is akin to the
device used by Mr. Ullah. The
magazine advises using a
Christmas tree light as a component, and Mr. Ullah used
such a light in his bomb, according to prosecutors.
David Kelly, former NYPD
counterterrorism
assistant
commissioner, said instructions on carrying out attacks
have long been easily available.
“Jihadists are particularly adept [at] putting out content
that lures people in,” said Mr.
Kelly, who now works for K2
Intelligence, a private investigative firm.
He doubted that there
would be movement to force
websites to take down the
content because of concerns
about free speech. He said a
better counterterrorism effort
would be to post online material that counters the message
of the terrorists.
Google said it has added human reviewers and invested in
software to pull extremist videos from YouTube. It said it
also has instructed contractors
who rate search results to
mark extremist content as low
quality, to lower their likelihood of appearing in Google
search results.
The NYPD’s Mr. Davis said
sites should exclude certain
sections of the magazines, such
as instructions on carrying out
a truck attack, noting that social media sites have made efforts to filter their content.
“You can’t just say people
can get it other ways,” Mr.
Davis said.
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New York’s governor
and investigators
want internet firms to
police radical content
n-
Let the Record Show
First-year enrollment at
nationally accredited law schools
has been in steady decline, but a
12% jump in applications this fall
could reverse that trend next
year.
no
It’s cool to go to law school
again.
After years of plummeting
enrollment and hand-wringing
over the value of a law degree, interest in law school is
starting to rebound. The number of people applying to law
school for next fall is up
nearly 12% compared with the
same period a year earlier,
and around 14% more applications have been submitted, according to the Law School
Admission Council.
That marks the first significant uptick since before the
last economic downturn. Law
school deans and prelaw advisers offer several theories for
the rise: a political climate
that has thrust legal issues
into the spotlight, the recovery
of the broader economy and
legal job market, and law
schools continuing to offer discounts to lure top performers.
“Everybody’s starting to
sense this is turning,” said
Gregory Shaffer, prelaw advising coordinator at the University of Maryland.
As of early December,
17,962 applicants had sent in
104,260 applications, LSAC
data shows. Twenty-three law
schools reported application
increases of 40% or more.
The number of applicants
for fall 2018 could reach
61,000 to 63,000, according to
an early projection from Jerome Organ, a law professor at
Minnesota’s University of St.
Thomas who analyzes the law
school market. That would be
the highest figure in five
years—though still far below
prerecession highs.
50,000
40,000
30,000
20,000
10,000
0
2011 ’12 ’13 ’14 ’15 ’16 ’17
Source: American Bar Association
Discounts Help
Draw Applicants
The value proposition of going to law school has improved
as employment rates rise and
scholarship money flows.
The market for entry-level
legal jobs grew stronger for
the third year in a row with
the class of 2016, which had
an 87.5% employment rate 10
months after graduation, according to the National Association for Law Placement,
which tracks law school outcomes. The employment rate
has ticked higher as the number of graduates has fallen.
Law school is still expensive, with tuition often costing
upward of $45,000 a year. But
schools have doled out more
scholarships in recent years to
lure applicants.
The proportion of law
school enrollees receiving grants
rose from 49.9% in 2011 to 67%
in 2015, according to an analysis from Pepperdine University
School of Law professor Derek
Muller.
The percentage receiving
grants covering at least half of
their tuition rose in the same
period from 16% to 27.4%.
Some law schools cautioned that discounts could
lessen as rising applicant numbers increase competition.
things that have really come
up in the last year.”
Matthew Diller, dean of
Fordham Law School, said he
attributes part of the 20% increase in applications the
school has seen so far to “a renewed appreciation in the importance of law and the importance of lawyers in a
functioning democracy.”
Jordan Riger, a 22-year-old
senior at the University of
Delaware, first thought seriously about law school a few
summers ago after reading
about political scandals and
incidents with the police. “I
saw instances of people getting let off that I thought
shouldn’t have been, and instances of people getting punished or going to prison who
shouldn’t have been,” she said.
“That really confirmed it for
me.” Ms. Riger, who would like
to become a judge.
The surge in applicants
could level out as the admissions cycle continues into the
spring, though those in the legal academy say they are
hopeful the trend will stick.
Around a quarter of the applicant pool is typically recorded
by early December.
Not all schools are seeing a
turnaround. A quarter of the
roughly 200 nationally accredited law schools have seen no
change or decreases in applications, LSAC reported.
Schools seeing an increase
say it’s not just volume improving, but the strength of
applicants, as measured by average grades and test scores.
“We’re seeing really quality
students, who aren’t just doing this willy-nilly because
they don’t know what else to
do,” said Kris Tina Carlston,
prelaw adviser at Brigham
Young University.
THE WALL STREET JOURNAL.
Total J.D. enrollment at nationally accredited law schools,
at around 110,160, is the lowest
it has been in decades and has
fallen 25% since 2010, according to American Bar Association data.
Students and prelaw advisers attribute at least part of
the spike to the legal tumult
that has accompanied the first
year of the Trump presidency,
including the special counsel
investigation into Russian
meddling in the 2016 election.
The news has influenced college students, advisers say,
with many citing a desire to go
into immigration, civil-rights or
constitutional law.
“Virtually everyone talks
about wanting to be an immigration attorney,” said Charles
Davidson, director of the
prelaw institute at John Jay
College of Criminal Justice.
“They’re thinking about these
Starting at
$1,950
New force leads terror fight
in Bangladesh............................ A6
Politics Piques Law School Interest
BY SARA RANDAZZO
ly
.
Police stood guard earlier this week in the New York Port Authority Bus Terminal after a Bangladeshi man allegedly tried to set off a bomb.
Free Engraving
www.baume-et-mercier.com
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A4 | Saturday/Sunday, December 16 - 17, 2017
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*******
U.S. NEWS
Short Window Restrains ACA Sign-Ups
Drop in enrollments is
expected, putting
more pressure on
insurance markets
Strong Demand
Despite enrolling more people than last year through the first six
weeks, the Affordable Care Act’s federal exchanges won’t meet last
year’s total due to a shortened enrollment window. Every state but
Louisiana and West Virginia saw gains in enrollment.
Total cumulative ACA sign-ups
BY STEPHANIE ARMOUR
8
10
Mont.
N.D.
Ore.
2018 enrollment ended Friday
Idaho
Nev.
2017 enrollment
2018 enrollment
6
0%
20
ended Jan. 31
through Dec. 9
9.2 million
4.7 million
4
Utah
Calif.
Ariz.
Wyo.
Neb.
Colo.
Kan.
Okla.
N.M.
Texas
0
N.H.
Vt.
Minn.
Wis.
S.D.
2
Iowa
Dec.
Mo.
Ark.
Note: Data for first six weeks ended Dec. 10 for 2017 exchanges and Dec. 9 for 2018 exchanges.
said that runs ahead of last
year at this time by about
650,000 people.
The federal exchange,
HealthCare.gov,
performed
well Friday despite the rampup in activity, according to
CMS officials and consumer
advocates. People who contacted the call center were being asked in some cases to
leave contact information, but
all consumers who left contact
information will be able to enroll in a plan with coverage
starting Jan. 1, they said.
States that run their own
exchanges generally have longer enrollment windows this
year, and some have extended
them further.
“It’s almost certain HealthCare.gov will have lower enrollment than last year—prob-
Pa.
Ohio
W.Va. Va.
Ky.
N.C.
Tenn.
S.C.
Ala. Ga.
La.
Miss.
Highest
Jan.
Source: Centers for Medicare & Medicaid Services
Maine
N.Y.
Mich.
Ill. Ind.
Alaska
Nov.
State exchanges
30
Wash.
10 million enrollees
The end of open enrollment
under the Affordable Care Act
on Friday saw an uptick in
people selecting health plans,
but with a shorter window for
sign-ups, this year’s tally is expected to fall short of last
year’s, an outcome that could
further imperil the fragile individual insurance market.
Less robust sign-ups on the
federal health exchange are
likely to lead to higher premiums and bolster critics who
say that the law is failing. Supporters say the enrollment
pace has defied expectations,
given that the Trump administration shortened the sign-up
window and cut millions of
dollars in outreach funding.
Nearly 4.7 million people
had signed up for coverage by
Dec. 9 on the ACA federal exchange, according to the Centers for Medicare and Medicaid Services. ACA supporters
Percentage change in total ACA sign-ups on the federal exchange
through the first six weeks of the 2017 and 2018 enrollment periods
Mass.
R.I.
Conn.
N.J.
Del.
Md.
D.C.
Fla.
37.2%
Hawaii
ably considerably lower,” said
Caroline Pearson, senior vice
president for policy and strategy at consulting firm Avalere
Health. “But the state exchanges could over-perform
last year.”
The final numbers for the
federal exchange won’t be
known until next week at the
earliest. Figures for states that
opt to run their own insurance
TAXES
THE WALL STREET JOURNAL.
marketplaces will likely come
early next year.
The federal and state exchanges allow people who
don’t get health insurance on
the job, or through federal
programs like Medicare or
Medicaid, to buy coverage and
obtain eligibility for tax credits
that reduce premium costs. Almost 85% of consumers who
buy plans on the ACA ex-
changes get tax credits.
The ACA’s smooth operation
depends on a hefty number of
people signing up for coverage
because insurers rely on
healthy and younger people to
offset the higher costs of older,
sicker consumers.
Tepid enrollment could lead
insurers to raise premiums in
2019 for individual plans sold
on the health law’s exchanges.
Lower enrollment tallies are
expected because the Trump
administration reduced funding this year by $116 million
for the outreach and advertising that informs people about
the enrollment period. The administration also cut the enrollment period to 45 days
from 90. The Obama administration had proposed cutting
the period, but not as much.
Some Democrats, including
Sens. Patty Murray of Washington and Ron Wyden of Oregon, called on the Trump administration to extend the
open-enrollment period. They
worry that battles in Washington over repealing the health
law, along with well-publicized
Trump administration actions
to weaken the ACA, have depressed sign-ups.
Race to the Bottom
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40
35
Continued from Page One
earners, retirees and young
workers, especially in low- or
no-tax states, will indeed find
their taxes are much simpler.
Millions of others—self-employed professionals such as
doctors, lawyers, accountants
and architects, business owners and even workers in the
gig economy—could get more
complicated taxes.
Most of the tax overhaul’s
simplification springs from a
historic change in one provision: the near-doubling of the
“standard deduction” to about
$12,000 per individual and
$24,000 per married couple.
The standard deduction is
the write-off filers get if they
don’t list “itemized” amounts
for mortgage interest, charitable donations, and the like
separately on Schedule A.
France
30
25
Japan
U.S.
U.K.
Germany
Canada
Ireland
20
15
10
5
0
2000
’05
’10
Source: OECD
House Ways and Means Committee Chairman Kevin Brady (R., Texas) spoke after Republicans
signed the conference committee report to advance the GOP tax bill in Washington on Friday.
How Parts of the
Bill Would Hit Home
Current: Itemized deduction for
expenses above a certain percentage of income
Proposed: Temporarily lowers
that income percentage
DEDUCTIONS, EXEMPTIONS
Standard Deduction
Current for 2018: $13,000
(married); $9,550 (head of
household); $6,500 (single)
Proposed: $24,000 (married);
$18,000 (head of household);
$12,000 (single)
Personal Exemption
Current: $4,150
Proposed: Repealed
Child Tax Credit
Current: $1,000, starts phasing
out for married couples at
$110,000 in income; $75,000
for others
Proposed: $2,000, $1,400 of
which is refundable; starts
phasing out at $400,000 for
married couples filing jointly,
$200,000 for all others
State and Local Taxes
Current: Deductible for taxpayers who itemize, with limits
Proposed: Caps at $10,000
amount that can be deducted
Mortgage-Interest Deduction
Current: Itemized deduction on
loans up to $1 million
Proposed: Itemized deduction
on loans up to $750,000
Alternative Minimum Tax
Current: A parallel tax system
that disallows personal exemptions and state deductions for
high-earning households
Proposed: Preserves AMT but
significantly narrows it
Medical Expenses
would pay more. The bill would
cap that deduction at $10,000.
The GOP plan also would nearly
double the standard deduction
for individuals while repealing
the personal exemption. That
combination would in turn reduce incentives to use mortgage
and charitable deductions that
help to fuel American borrowing
and giving.
Republicans appear poised to
overcome objections from home
builders, real-estate agents,
charities and lawmakers from
high-tax states opposed to the
changes.
Republicans also aim to use
the tax bill to achieve a healthpolicy goal, repealing starting in
2019 the individual mandate to
have health insurance, a center-
piece of the Affordable Care Act.
That could lead to millions
fewer people getting insurance.
Republicans also added a provision allowing oil drilling in the
Arctic National Wildlife Refuge.
The final version jettisoned
some controversial provisions
Republicans had considered advancing. Those include the taxfree status of graduate student
Under current law, only
about 30% of tax filers, or 45
million, itemize. The doubling
of the standard deduction
could shrink that number
by 25 million or more, depending on other changes.
The switch to the standard
deduction would greatly simplify millions of filers’ tax
lives. No longer would they
need to have the right letter in
hand before taking a charitable deduction, or to save receipts and keep logs to prove
other deductions.
The resource-strapped Internal Revenue Service would
also be freed from having to
police deductions for these filers.
The overhaul also ends two
complex backdoor tax increases known as PEP and
Pease. PEP stands for Personal
Exemption Phaseout, which
limits personal exemptions
taken by higher earners.
Pease—named for Donald
Pease, the late Congressman
who sponsored it—can raise
taxes by clipping some writeoffs.
But—and there’s a big
“but”—the proposed overhaul also adds significant complexity for some individuals.
Much of it flows from tax
cuts for businesses. Republican lawmakers plan to reduce
the top corporate tax rate to
21% from 35%. They also want
to drop the top rate on business income earned by socalled pass-through firms such
as partnerships and S corporations to about 30% from 39.6%.
Unlike corporations, passthroughs owe only one layer of
tax. Their net income flows directly to the owner’s return
and is taxed at the individual’s
rate.
The lower rate on passthrough income would mean
that, for the first time, the
wages earned by many employees will be taxed at higher
rates than the net income of
business owners.
The overhaul’s sponsors
hope the tax cuts for businesses will spur economic
growth. Many tax specialists
worry that the changes will
spur complex gaming by tax-
The core of the GOP tax bill
is in line with versions that
passed the House and Senate.
Here’s how parts of the bill
would affect individual filers:
n-
TAX BRACKETS, RATES
The highest-earning Americans
will get a tax rate of 37%,
which is lower than today’s
39.6% and lower than the top
rate in each of the bills that
passed the House and Senate.
no
FILING
ly
.
45%
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
Continued from Page One
lower tax rates for individuals
that would be partially offset by
the end of some deductions.
The plan would sharply lower
business taxes, cutting the 35%
corporate tax rate to 21% to the
acclaim of business groups who
have spent years pushing for
such a cut. Multinational corporations would get a new regime
for paying U.S. taxes on their
foreign income and a one-time
tax on profits they have stockpiled overseas. That tax would
be 8% on illiquid assets and
15.5% on cash, higher than many
companies hoped.
Pass-through
businesses,
such as partnerships and S corporations, would get a steep tax
rate cut in one of the most
novel—and potentially porous—
pieces of the GOP tax plan. They
would get a 20% deduction applied to taxable income, available to all businesses owned by
individuals making less than
$157,500 and joint filers making
less than $315,000. The break
would be phased out above
those thresholds for professional service businesses such
as law or accounting firms.
Business owners in other industries above those income
thresholds could qualify for tax
breaks based partly on their
capital investment.
For individuals, the top rate
would come down, too, from
39.6% to 37%, kicking at
$500,000 for individuals and
$600,000 for married couples.
The other brackets would be
10%, 12%, 22%, 24%, 32% and
35%. An exemption on the 40%
estate tax would be doubled to
more than $11 million per person, though Republicans fell
short of repealing the tax as
some wanted.
The bill would cut taxes for
most households, though those
reductions wouldn’t be universal or permanent. Many of the
individual tax cuts are expected
to expire after 2025. Republicans say future Congresses
would extend them, making the
actual fiscal cost larger.
But not everybody wins.
Some households, particularly
residents of high-tax states who
would lose the ability to fully
deduct state and local taxes,
Nations have been moving their corporate tax rates lower for years.
The Republicans’ proposal has the U.S. corporate rate dropping to 21%
in 2018. Headline national rates, excluding regional or state levies:
ALIMONY
Current: Deductible for people
making alimony payments
Proposed: Not deductible to the
payer for agreements signed after 2018
ESTATE TAX
Current: 40% on estates over
$5.6 million per individual
Proposed: 40% on estates over
$11.2 million per individual
CAPITAL GAINS, DIVIDENDS
Current: Top rate of 23.8%
Proposed: No change
529 PLANS
Current: Proceeds from such
accounts can be used for postsecondary education
Proposed: Proceeds can be
used for K-12 and for post-secondary education
Whether you get a
simpler tax filing
depends largely on
who you are.
payers, who will try to reorganize businesses to take maximum advantage of the tax
changes.
“At country clubs people
are going to be ready to kill
each other over who has the
lowest tax rate,” says Michael
Graetz, a former Treasury official under President George
’15
THE WALL STREET JOURNAL.
tuition waivers and private activity bonds and deductions for
medical expenses, student loan
interest and teachers’ out-ofpocket expenses. A provision
imposing capital gains taxes on
some home sales, potentially of
top earners, was left out.
The bill also preserves the
ability to use tax-exempt bonds
for sports stadiums—a priority
for Mr. Trump, a GOP aide said.
Official estimates of the
House and Senate bills showed
that the plans would modestly
accelerate economic growth,
though not enough to pay for
the tax cuts. After accounting
for the added revenue the bill is
expected to produce by boosting
overall economic growth, the
GOP plans would add more than
$1 trillion to budget deficits
over the next decade, according
to the Joint Committee on Taxation, the official nonpartisan
scorekeeper for tax legislation
in Congress.
Those estimates had caused
Mr. Corker to cite deficit concerns this month when he voted
no on the bill. On Friday, he reversed course, even though he
said he thinks it is possible that
the bill could add $500 billion to
deficits.
“Every bill we consider is imperfect and the question becomes: Is our country better off
with or without this piece of
legislation,” he said. “I think we
are better off with it. I realize
this is a bet on our country’s enterprising spirit, and that is a
bet I am willing to make.”
One of the final changes was
a boost in the child tax credit to
secure the vote of Mr. Rubio.
The Senate bill already doubled
the credit to $2,000 per child
from $1,000 and made $1,100 of
that refundable, meaning it was
available to households that
don’t pay income taxes.
Mr. Rubio and Sen. Tim Scott
(R., S.C.) negotiated a change to
increase the amount of refundability to $1,400. They didn’t
make another change Mr. Rubio
wanted, to make more of the
credit available to the lowest-income families.
To offset the cost, they decided to make the credit unavailable for parents of 17-yearolds. That is the same as
current law, but it would reverse the Senate’s plan for expansion. The child credit would
begin phasing out for married
couples making $400,000 and
individuals making $200,000, up
from $110,000 and $75,000 in
current law.
Democrats watched from the
sidelines and seem unlikely to
provide any votes in the House
or Senate next week. They
warned that the bill was a fiscally irresponsible giveaway to
GOP donors and the product of
a rushed, closed process.
“Republicans approved an
agreement for a tax plan that
until now they have refused to
share with the American public,” said Rep. Richard Neal (D.,
Mass.) the top Democrat on the
House Ways and Means Committee.
H.W. Bush who is now at Columbia University’s law school.
These complexities will affect taxpayers at all income
levels, including “gig workers”
who aren’t employees, he
adds. Tax professionals won’t
lack for business.
The overhaul also preserves
that pinnacle of complexity,
the Alternative Minimum Tax,
after nearly repealing it. The
AMT is a parallel tax system
that rescinds the benefit of
some breaks.
For most, the good news is
that this levy will apply at
much higher income levels
than the current AMT, which
tends to hit filers earning between $200,000 and $600,000.
The upshot is that while the
overhaul would simplify taxes
for many, it would make them
more complex for many others.
The overhaul is also a reminder of how and why the
U.S. tax code is complex. Most
of the time, complexity isn’t a
matter of multiple tax rates or
brackets, which are fairly simple to apply.
Instead, it usually has to do
with definitions. What is income, and what isn't? Which
earnings or expenses deserve
favored treatment, and which
don’t? How should rules apply
to dividends, or mortgage interest, or college tuition, or
nursing-home bills?
The tax code is also complex because life is complex,
and the law has to apply to every situation. In a blended
family, deciding who counts as
a “dependent” can be very
complicated.
Congress and lobbyists also
bear a share of blame for tax
complexity. Simpler rules
wouldn’t provide as many opportunities for special breaks,
or for campaign contributions.
The truth is, many of us
don’t mind tax complexity—if
it lowers our bills.
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.
Saturday/Sunday, December 16 - 17, 2017 | A5
* * * * * * *
U.S. NEWS
Trump Won’t Talk About Pardon
The Education Department is
cutting staff at its Office for Civil
Rights as part of a push to reduce Washington’s footprint in education. But critics say the move
will blunt the office’s response to
issues like sexual assault on college campuses and racial discrimination in public schools.
The department has offered
voluntary buyouts overall to 207
employees as part of a broad
staff reduction, officials say. Of
those, 45 offers were made in
the civil-rights office, the most
for any unit in the department.
Department officials say the
offers are aimed at employees
reaching retirement age. Liz Hill,
a department spokeswoman,
also said the numbers reflect the
fact that the civil-rights office is
the single largest in the agency.
“Keep in mind, these positions
can be backfilled as the workload demands,” Ms. Hill said.
—Michelle Hackman
SEXUAL HARASSMENT
Women Lawmakers
To Take Bigger Role
Congressional leaders are tapping additional female lawmakers to help adjudicate cases in
front of the House Ethics Committee, as Capitol Hill contends
with a growing number of sexual-harassment allegations.
In recent weeks, Republican
and Democratic leaders have
designated 10 extra members to
be part of the pool of members
of Congress who could serve on
subcommittees that investigate
and punish alleged ethics transgressions.
Typically, 20 members are
chosen for the pool at the beginning of a new Congress. It has
now been expanded to 30, with
a focus on adding more women.
The additions came at the request of House Ethics Committee chairwoman Susan Brooks,
according to a congressional aide.
—Natalie Andrews
BY REBECCA BALLHAUS
AND ARUNA VISWANATHA
WASHINGTON—President
Donald Trump on Friday said
he wouldn’t “yet” discuss
whether he would pardon his
former national security adviser and took another swing at
federal investigators probing
Russian interference in the
2016 election.
The former aide, Mike Flynn,
recently pleaded guilty to lying
about calls with Moscow’s ambassador a month before Mr.
Trump’s inauguration. Asked
Friday whether he would pardon Mr. Flynn, Mr. Trump said,
“I don’t want to talk about pardons of Michael Flynn yet.”
In comments as he left the
White House for a graduation
ceremony for police officers at
the FBI National Academy in
Quantico, Va., Mr. Trump criticized the Federal Bureau of Investigation and the Justice Department. “I can say this, when
you look at what’s going on
with the FBI and the Justice
Department, people are very,
very angry,” he said.
At the FBI ceremony, Mr.
Trump called for the nation to
“do a better job of showing the
respect” to law-enforcement officers.
“The president of the U.S.
has your back 100%,” he told
the graduates. “America’s police will have a true friend and
loyal champion in the White
House—more loyal than anyone
else can be.”
In recent weeks, Mr. Trump
and House Republicans have
stepped up their complaints
about the FBI and Special
Counsel Robert Mueller, who
was tapped earlier this year to
lead an investigation of
whether Trump associates colluded in Russia’s interference in
the 2016 presidential election.
Those complaints intensified
this week following the release
JONATHAN ERNST/REUTERS
Civil-Rights Staff
Cuts Draw Criticism
The president said it
was too early when
questioned about
helping Mike Flynn
President Trump told police officers during a graduation ceremony at the FBI academy that the nation should have better respect for them.
of politically tinged text messages sent by an FBI agent who
had been involved in the probe
and the disclosure that a Justice Department official had
met in 2016 with the author of
a controversial dossier on allegations of Mr. Trump’s links to
Russia.
Top Justice Department officials have defended the integrity of the agency and its investigation. At a press conference
Friday, Attorney General Jeff
Sessions said the agency “is doing a great job around the
country.”
“We will not be reluctant to
admit error,” he said. “We will
not hide and be excessively defensive.” But he added: “Sometimes, things that might appear
to be bad...have more innocent
explanations.”
Mr. Trump, who has denied
any collusion by him or his
campaign, has openly criticized
Mr. Mueller’s investigation and
has expressed skepticism about
U.S. intelligence agencies’ report that Russia interfered in
the 2016 election, which Moscow has denied doing. On Friday, he said Democrats had invented the notion of Russian
interference as an “excuse for
losing the election.”
Democrats criticize such
complaints from Mr. Trump
and his allies as politically motivated attempts to distract
from a legitimate probe.
“The president has resisted
the objective reality that Russia
meddled in the 2016 elections,”
Sen. Richard Blumenthal (D.,
Conn.) said on CNN Friday. “In
fact, he’s firmly rejected any
suggestion that Russia attacked
our democracy, which, plainly,
it did. All of the intelligence
agencies have reached unanimity in that conclusion, and it
impairs our ability to resist and
stop this kind of meddling and
interference in the future.”
Flynn Probe Looks
Into Transactions
Mr. Flynn pleaded guilty this
month to lying to the Federal
Bureau of Investigation about
Russian contacts and is cooperating with Mr. Mueller’s probe.
A lawyer for Mr. Flynn declined to comment. A Deutsche
Bank spokesman said the bank
“takes its legal obligations seriously and remains committed to
cooperating with authorized investigations into this matter.”
Mr. Flynn resigned in February for failing to disclose conversations with a Russian ambassador. Mr. Mueller has been
investigating whether he improperly concealed financial ties
to Turkey and to Russia.
Jay Sekulow, a spokesman
for Mr. Trump’s legal team, said,
“Deutsche Bank hasn’t received
subpoenas on the president, the
president’s businesses or the
president’s family.”
—Jenny Strasburg
ly
.
EDUCATION DEPARTMENT
Deutsche Bank AG has been
asked by U.S. government authorities to hand over information about transactions that
could be linked to former national security adviser Mike
Flynn or entities connected to
him, according to people familiar
with the matter.
The request was part of
Special Counsel Robert Mueller’s
probe into Russia’s meddling in
the 2016 U.S. presidential election, the people said. The Wall
Street Journal reported Thursday that Deutsche Bank has received several subpoenas in the
probe, and the German lender is
continuing to provide information to authorities, according to
people familiar with the matter.
co Fo
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WASHINGTON
WIRE
nno
MIKE BLAKE/REUTERS
FROM PAGE ONE
Nelson Peltz, founding partner of Trian Fund Management, speaking in Laguna Beach, Calif., in 2016.
P&G
Continued from Page One
meeting, the company had initially claimed victory in the
high-profile proxy fight. An independent tally last month
showed the activist had won
about 42,000 more votes than
a P&G director, a margin of
0.0016% of the total shares
outstanding.
P&G said Friday that a certified vote count showed the
results were “extremely close”
and because so many shareholders had voted for Mr.
Peltz, it decided to add him to
the board. According to the
certified tally released Friday,
Mr. Peltz lost by nearly
500,000 shares. There were
nearly 2 billion votes cast.
Mr. Peltz, whose Trian Fund
Management has invested
about $3.5 billion in P&G, had
called upon the company to
end the dispute and appoint
him to its 11-person board. The
company spent several weeks
reviewing the ballots before
deciding whether to contest
the results.
The two sides have battled
about the best structure and
strategy for the world’s biggest consumer-products company. Mr. Peltz argued it needs
to streamline it businesses and
bring in outside talent.
P&G Chief Executive David
Taylor countered that Mr.
Peltz would disrupt a turnaround that is under way at
the maker of Tide detergent
and Gillette razors after a decade of market-share losses
and stagnating profits.
In an interview, Mr. Taylor
said Mr. Peltz took on a more
cooperative tone following the
proxy vote, which led P&G to
drop its vigorous opposition to
his candidacy.
“I found him, in the conversations we’ve had in the last
many weeks, to be construc-
‘I found him…to be
constructive and
forward-looking,’
P&G’s CEO said.
tive and forward-looking,” Mr.
Taylor said. “We’ve both tried
to find a way to build a bridge
to move forward.”
Strong shareholder support
for Mr. Peltz was a key factor
in adding Mr. Peltz, the CEO
said. “The shareholders did
communicate a pretty strong
message advocating for Nelson,” he said.
The company said it and Mr.
Peltz have agreed that the
company wouldn’t take on excessive leverage, substantially
reduce R&D spending or break
up the company. From the outset, Mr. Peltz had said he
wouldn’t seek a breakup.
“David Taylor and I have
developed a strong relationship and I look forward to
working with him and the rest
of the board,” Mr. Peltz said.
P&G also will change its
stock-performance program to
dole out awards based on sales
growth and shareholder returns so that incentives are
based on P&G’s performance
overall and not how it fares
relative to peers, something
Mr. Peltz argued for throughout the fight. The company is
considering further changes.
In addition, P&G said it
would add Novartis AG CEO
Joseph Jimenez to its board on
March 1. The changes will increase the size of the board to
13 members.
P&G is the biggest U.S. company by market value to face a
proxy contest. The two sides
spent at least $60 million and
crisscrossed the country for
weeks to win support from
shareholders, major index fund
managers and P&G retirees. At
the end of the campaign, the
company’s shareholders were
essentially evenly split.
Mr. Peltz, a 75-year-old billionaire, typically has sought a
board seat at companies in
which he invests. He personally joined Mondelez International Inc., the maker of Oreos,
and H.J. Heinz Co.
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A6 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
WORLD NEWS
U.S. Study Finds Flaws in Mosul Battle
Assessment of pivotal
assault faults U.S.
forces for ‘suboptimal
combat effectiveness’
U.S. airstrikes in July targeting Islamic State positions in Mosul, the militants’ last urban stronghold in Iraq, in the final push of the nine-month battle to retake the city.
the city were retaken by Iraqi
forces in July in a campaign
that lasted nearly nine
months, killed thousands of
people and displaced nearly a
million civilians. Though
costly, the victory was a turning point that eventually led to
the collapse of Islamic State’s
self-declared caliphate.
American and allied efforts
to advise Iraqi forces were
largely successful, the report
notes. Gen. Townsend’s decision to authorize U.S. personnel near the front lines to call
in airstrikes facilitated many
of the Iraqi gains.
Some low-tech programs
helped as well. The U.S. provided armored bulldozers to
the Iraqis to bust through Islamic State fortifications and
clear away roadside bombs.
But the report, which focused more on battlefield tactics than the development of
the overall strategy, identified
significant deficiencies as well.
The Army, it noted, was slow
to respond to the threat posed
by Islamic State’s drones. “The
U.S. Army lacks a comprehensive approach to urgent,
emerging battlefield challenges,” the report stated.
Another potential vulnerability was the Army’s reliance
on contractors, the report
notes. The study questioned
whether it is too risky to use
them to service teams of military advisers on a dangerous
battlefield.
The Army’s standard training for urban warfare, the report added, didn’t adequately
replicate the difficulty in maneuvering through Mosul’s
narrow streets against a dugin and well armed enemy. “Urban training scenarios are too
limited and sterile to replicate
conditions such as those expe-
rienced in Mosul,” it states.
The intense fighting inside
Mosul also posed a challenge
for medical care. It was difficult for Medevac helicopters to
land safely in the city and the
rubble-strewn streets sometimes made it hard to transport the wounded by vehicle.
The study is sharply critical
of the use of leaflets to communicate with Mosul’s civilians. Many of the leaflets
weren’t tailored for the tribes
and communities that might
receive them. Other leaflets
failed to reach their target audience.
ly
.
U.S.
Lt.
Gen.
Stephen
Townsend, who led the force
that fought the militants during the Mosul campaign and
ultimately succeeded in evicting Islamic State. The Wall
Street Journal reviewed an unclassified version of the report
that hasn’t yet been disseminated.
When the battle for Mosul
began in October 2016, the city
was defended by 3,000 to
5,000 well-armed Islamic State
fighters who had more than
two years to prepare elaborate
defenses.
The last neighborhoods of
co Fo
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WASHINGTON—American
military units that participated
in the decisive battle for Mosul against Islamic State militants were hampered by difficulties in sharing imagery and
sometimes had different understandings of what was happening on the battlefield, according to a new U.S. Army
study of the operation.
That conclusion is part of a
broader military assessment
that raises concerns about the
military’s response to Islamic
State’s drone threat, the use of
private contractors, the Army’s
training for urban warfare and
how American forces communicated with Mosul’s trapped
residents.
“A common operational and
intelligence picture is critical,”
the report said, referring to
the problems in sharing imagery. “Different imagery databases resulted in inefficiencies
and suboptimal combat effectiveness.”
It is common for the military to analyze the lessons of
its operations, but its examination of the hard-fought Mosul
campaign has particular relevance. The battle was a test of
a new type of warfare the U.S.
has employed in Iraq, Syria
and Afghanistan in recent
years—one in which most
ground combat is done by indigenous forces with Americans providing advisers and
firepower.
Prepared by American and
British military officers, the
study was commissioned by
FELIPE DANA/ASSOCIATED PRESS
BY MICHAEL R. GORDON
A Bangladeshi policeman keeps guard following a terrorist attack and siege in Dhaka in 2016.
IRAN
Continued from Page One
out of administration concerns
that Iranian airlines could use
the new jets, or old ones, to
ferry weapons and military
personnel into Syria, the U.S.
officials said.
Boeing and engine maker
General Electric Co. are the
only major U.S. companies to
pursue Iranian business.
The options to be presented
to Mr. Trump include banning
sales, imposing stringent conditions that could halt any aircraft deliveries, or slow-walking approvals, according to the
U.S. officials and other people
familiar with the matter.
Since the deal took effect in
2016, Airbus, based in Toulouse, France, has delivered
three jets to Iran Air but could
be restricted by any U.S. ban
because of the large U.S. content on its aircraft.
Boeing and Airbus have announced deals to sell almost
300 planes to Iranian airlines
valued at $40 billion altogether before industry discounts. Boeing signed a proposed sale to privately owned
Iran Aseman Airlines in April,
the only proposed deal since
Mr. Trump took office. Boeing,
unlike Airbus, hasn’t added
Iranian deals to its official order book.
The 2015 nuclear deal between Iran and world powers
allowed for the aviation sales
by both companies to go
ahead, pending approval from
the U.S. Treasury’s Office of
Foreign Assets Control. Those
approvals to export planes
were granted by the Obama
administration.
Mr. Trump in October refused to certify to Congress
that Iran was complying with
the deal, but the administration remains a party to it.
Mr. Trump faces a mid-January deadline to extend sanctions relief to Iran and is expected to again tell Congress
he won’t certify Iran’s compliance with the deal. The Treasury hasn’t issued any Iran-related aviation licenses under
the Trump administration.
A spokesman for the White
House National Security Council declined to comment on individual licenses issued by the
Treasury Department, but
said, “The administration’s position is clear: We will not issue export licenses unless we
are convinced the aircraft will
be used exclusively for commercial passenger aviation.”
past decade, according to the
World Bank, have lifted millions out of poverty, and the
government is hoping to set
Bangladesh on the same path
as India or China.
“It’s still something that’s
new for Bangladesh,” one
Western security official in the
country said, commenting on
the government’s reluctance to
link a pattern of attacks to
global terrorist groups. “They
don’t want to inspire fear in
the local population and the
expat community.”
A local Islamic State branch
claimed responsibility for 18
VAHID SALEMI/ASSOCIATED PRESS
paratively small in the secular,
mostly Sufi Muslim country of
around 160 million people,
which had been spared the extremism and sectarian conflict
that has plagued neighbors
such as Pakistan.
Economic growth rates averaging around 6% over the
no
WASHINGTON—The
botched terror attack in New
York this week has created a
fresh test for a new counterterrorism force tackling a
growing U.S. concern: international extremism in Bangladesh, home of the suspect.
The
Bangladesh-based
Counter-Terrorism and Transnational Crime unit, set up
with U.S. help last year, was
expected to focus on crime.
But it was given a broad mandate to fight terrorism after an
attack last year on a bakery in
the capital of Dhaka killed 20
people, mostly foreigners, including one U.S. citizen.
The crime unit now is working alongside the Federal Bureau of Investigation to determine if the New York suspect,
Akayed Ullah, had any links to
local militant groups, putting
an unwelcome spotlight on a
problem the government has
sought to play down in recent
years. Mr. Ullah said he was inspired by Islamic State.
Until recently, the influence
of transnational terrorist
groups was considered com-
n-
BY JESSICA DONATI
ROBERTO SCHMIDT/AGENCE FRANCE-PRESSE/GETTY IMAGES
Ties
New Force Leads Terror Fight in Bangladesh Tillerson
Conditions to
An Iran Air pilot waved from a new Airbus plane in Tehran in January.
New Customers
Boeing and Airbus have found Iranian airlines eager buyers.
Intended sales
Iran Air
Boeing
737 Max
Airbus
A320
50
777-300ER
15
A330
777-9
15
A350
46
38
16
Aseman Airlines*
737 Max
*preliminary
60
Source: the companies
A Boeing spokesman said,
“We are authorized to deliver
[aircraft], but we will continue
to follow our government’s
lead with regards to all of our
activities with Iran.” Airbus
THE WALL STREET JOURNAL.
had no comment but previously said it had U.S. approvals
to deliver the plane and would
fully comply with U.S. and
other regulatory requirements.
The U.S. Treasury didn’t re-
attacks in Bangladesh last
year, according to the State
Department’s counterterrorism
bureau, while Al Qaeda waged
an assassination campaign
against secular activists and
bloggers, and claimed two attacks, including the killing of a
local U.S. embassy employee.
The emergence of a small
group of extremists claiming
allegiance to either a local
branch of Al Qaeda or Islamic
State has rattled the government and unnerved the country’s huge aid and business
community.
Sheikh Hasina Wajed, the
prime minister, has led an effective but brutal crackdown
on alleged militants that has
helped remove Islamic State
leaders from the country.
“Terrorist organizations are
losing their strength,” deputy
counterterrorism
commissioner Saiful Islam said in an
interview this week.
Mr. Islam’s forces are investigating whether the New York
bomber had any ties to local
groups. He said nothing suspicious has emerged. The
bomber had probably been
radicalized abroad, he said.
UNITED
NATIONS—U.S.
Secretary of State Rex Tillerson told the Security Council
on Friday that Pyongyang
must “earn its way” back to
the negotiating table by ceasing its nuclear tests, adding
that the U.S. would accept no
precondition for talks.
The comments, at a session
called to discuss North Korea,
marked a shift for Mr. Tillerson, who earlier this week said
the U.S. was ready for talks
whenever North Korea wanted
with no preconditions.
The Trump administration
has at times given mixed signals on whether or not it
would be open to talk with
North Korea if the status quo
persists.
The U.S. position is at odds
with the view of Council members China and Russia, which
say that coaxing North Korea’s
leader Kim Jong Un back to
talks requires all sides to refrain from provocative actions.
spond to a request for comment.
The scrutiny of the planned
jet sales is emblematic of the
broader concerns about Iran
from Trump administration officials and some lawmakers,
over the country’s support of
terrorism and wider conflicts
in the region such as in Syria,
Yemen and Lebanon.
The U.S. “should not be in
the business of selling aircraft
to the world’s leading state
sponsor of terrorism,” said
Rep. Roger Williams (R.,
Texas), vice chairman of the
House Financial Services subcommittee on trade. He sponsored legislation that requires
more stringent scrutiny of aircraft sales to Iran. The House
on Thursday approved the bill,
which has backing in the Senate.
Administration officials said
they were unsure what Mr.
Trump would decide. Mr.
Trump has forged close ties
with Boeing, championing its
role as America’s largest exporter. While Boeing wants to
tap Iran’s thirst to replace its
aging jetliners and not cede
the market to Airbus, the urgency has been tempered by
its recent success in finding
other buyers for its twin-aisle
777 jet. Iran Air wants to buy
15 of the planes.
Losing the Iranian plane
deals wouldn’t be financially
crippling to either Boeing or
Airbus, but both are eager to
build a relationship in a country with a large population underpinning potentially major
demand for travel. Years of
sanctions have left Iran with
one of the world’s oldest airliner fleets.
Any move against the airline deals might also drive a
wedge between the Trump administration and Europe if Airbus plane sales don’t proceed.
European officials have frequently complained that Europe took more of a hit from
sanctions levied on Iran before
the deal was reached.
A senior diplomat familiar
with Trump administration
discussions said one consideration is allowing a slow delivery to ensure Iran isn’t using
the planes for illicit purposes,
or that the old aircraft, parts
and maintenance aren’t being
used for other airlines such as
Mahan Air, the firm sanctioned
by the U.S. Treasury for its
support of terrorism. Mahan
Air couldn’t be reached for
comment.
—Doug Cameron,
Robert Wall and Asa Fitch
contributed to this article.
Korea Talks
BY FARNAZ FASSIHI
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.
Saturday/Sunday, December 16 - 17, 2017 | A7
* * * * * *
WORLD NEWS
BY JAMES MARSON
MOSCOW—A Russian court
sentenced a former economy
minister to eight years in
prison for taking a $2 million
bribe in a trial that has cast a
spotlight on infighting among
elites and the power of the
country’s oil czar.
A judge in Moscow
said Friday that Aleksey Ulyukayev was guilty of taking the
bribe in November last year in
exchange for approving the
sale of a state-controlled oil
company to PAO Rosneft, Russia’s largest oil firm.
Mr. Ulyukayev denied the
charges, saying he had been
framed by Rosneft chief Igor
Sechin, a confidant of Russian
President Vladimir Putin.
Mr. Ulyukayev said he
thought a bag, given to him by
Mr. Sechin in a sting operation, contained wine, not
money. In a speech in court
last week, Mr. Ulyukayev
called the case “a monstrous
and cruel provocation.”
Mr. Sechin has told state
television that Mr. Ulyukayev,
a 61-year-old technocrat who
has served in various government roles over almost two
decades, had “demanded an illegal payoff for his regular
work,” and added, “That’s a
crime.”
The court ordered Mr. Ulyukayev to pay a fine of 130 million rubles ($2.3 million).
Prosecutors had asked for 10
years in jail for Mr. Ulyukayev
and a fine of 500 million rubles. Mr. Ulyukayev’s lawyers
said they would appeal.
U.S. Orders Screening
For Visa-Waiver States
BY LAURA MECKLER
WASHINGTON—The Trump
administration is putting new
requirements on the 38 nations
whose citizens are allowed to
travel to the U.S. without visas,
including better screening for
terrorists inside their own
countries, officials said Friday.
The administration is also
requiring some of these countries to initiate public information campaigns to dissuade
their nationals from staying in
the U.S. past their required departure dates.
The new requirements will
apply to the U.S.’s closest allies, such as Australia, France,
South Korea and the U.K. To
participate in the Visa Waiver
MHLONGO FAMILY
RAJESH JANTILAL/AGENCE FRANCE-PRESSE/GETTY IMAGES
openly about specific cases of
corruption and violence. “It is
like a pig that is eating its own
piglets.”
The two principal contenders
for the party leadership—Nkosazana Dlamini-Zuma, Mr.
Zuma’s ex-wife and a former
chairwoman for the African
Union, and Cyril Ramaphosa, a
firebrand-union-leader-turnedmultimillionaire who is Mr.
Zuma’s deputy—have offered
sharply contrasting visions for
South Africa.
Ms. Dlamini-Zuma has
picked up her ex-husband’s populist rhetoric, railing against
“white monopoly capitalism”
and pledging to use state institutions for “radical economic
transformation” of a society in
which the white minority still
controls an overwhelming proportion of the country’s wealth.
Mr. Ramaphosa has called for
an investigation into allegations
of corruption at state-owned
companies and by Mr. Zuma’s
political allies and promises to
revive lackluster economic
growth.
In the communities of KwaZulu-Natal, where unemployment is rampant and government jobs and tenders present
a quick path to relative wealth,
the battle of ideas is more of a
struggle for power and money.
“It’s a literal scramble for resources,” said Lukhona Mnguni,
a political analyst at the University of KwaZulu-Natal in Durban.
When Mr. Mhlongo—a 34year-old rising ANC star—ad-
dressed the cameras just yards
from where his party comrade
had been gunned down, it was
to make a point.
“This must stop now,” Mr.
Mhlongo said of the killings, three days before he himself was shot. “We are so tired
to see ANC members dying.”
Both men were among 5,000
delegates, nominated by ANC
branches countrywide, who will
elect a new leader for the party
that has ruled South Africa
since 1994 as soon as Sunday.
Since the ANC has won an absolute majority in all postapartheid national elections, the winner is likely to become the
country’s next president when
Mr. Zuma’s term ends in 2019,
even as opposition parties have
gained ground in recent years.
ly
.
leadership or by competitors
seeking their lucrative party
posts. Whatever the motive, the
deaths spotlight an increasingly
deadly battle for power and patronage inside Africa’s most revered liberation party.
ANC officials have played
down political motives for the
killings, saying they are crimes
that need to be investigated by
the police.
As with Mr. Zuma, many of
the slain politicians had been
caught up in corruption allegations—as whistleblowers or alleged perpetrators—officials,
activists and academics following the killings said.
“The ANC is killing itself,”
said Thabiso Zulu, one of the
few ANC activists in KwaZuluNatal who is speaking out
Former Minister
Convicted of
Bribery in Russia
no
lian bishops, said it would
work with another organization of Catholic leaders to review the report and respond
within months.
The Vatican issued a response calling the report the
product of “thorough efforts
over the past several years,”
and saying it “deserves to be
studied seriously.”
The brief Vatican statement,
which didn’t mention the confession or celibacy issues, said
the church was committed to
the “protection of all children
and vulnerable adults” and to
working in Australia for “healing and justice” for sex abuse
victims and survivors.
The
recommendations,
made by Australia’s Royal
Commission into Institutional
Responses to Child Sexual
Abuse, were among dozens
made in a 17-volume report released Friday. It was the conclusion to a five-year inquiry.
Sthembiso Mhlongo, right, is one of 40 politicians killed since last year in KwaZulu Natal. Durban, above, is the province’s largest city.
Program, countries must meet
a high bar for terror screening
and cooperation with U.S. vetting of their citizens.
Already, the U.S. uses membership in the program as a carrot to persuade other countries
to take various security steps,
and the new requirements
amount to more of the same.
Under the new rules, the
U.S. will require participating
countries to systemically
screen travelers who cross
into their own countries
against data that the U.S. provides about threats and suspected terrorists. In addition,
nations will be required to vet
workers at their airports to
guard against insider threats
to aviation security.
Mr. Ulyukayev, who had
been under house arrest, was
taken into custody in the
courtroom and led away in
handcuffs. He is the highestlevel government official convicted of corruption in postSoviet Russia.
Mr. Sechin, 57 years old, is
a security-services veteran
who has increased his clout in
recent years, turning Rosneft
into the world’s largest listed
crude producer by taking over
smaller companies.
Mr. Ulyukayev, along with
some other government ministers, spoke out against a sale
of the state’s controlling stake
in PAO Bashneft to Rosneft in
August 2016, but the next
month said Rosneft could bid.
Mr. Sechin defied the court
by not appearing to give evidence. Mr. Putin said at a
press
conference
Thursday that Mr. Sechin had done
nothing wrong by not appearing.
A Kremlin spokesman told
state news agency RIA Novosti
that he couldn’t comment on a
court decision.
“A terrible, baseless verdict,” Alexei Kudrin, a former
finance minister who worked
with Mr. Ulyukayev in government, wrote on Twitter. “Alas,
many today encounter such injustice.”
The U.S. Treasury Department noted Mr. Sechin’s ties
with the Kremlin when it imposed sanctions on him in
2014, saying that he “has
shown utter loyalty to Vladimir Putin—a key component
to his current standing.”
SERGEI CHIRIKOV/EPA-EFE/REX/SHUTTERSTOCK
Churches would have
to report sex abuse
that comes to light
through confession.
MPOPHOMENI, South Africa—Sthembiso Mhlongo, a
governing-party councilor in
the province of KwaZulu-Natal,
last month briefed reporters at
the scene where his colleague
was shot and killed in his
pickup truck while delivering
food to a school.
Three days later, Mr. Mhlongo was dead as well, shot in
the back of the head at his
home, as his wife cowered in
their bedroom.
The killings of the two members of South Africa’s ruling African National Congress, both
set to cast crucial ballots at the
party’s leadership conference
this weekend, mark the latest in
a violent spree that has left at
least 40 local politicians dead
since the start of last year.
The killings, concentrated in
the home province of scandalplagued President Jacob Zuma,
often involve multiple attackers
firing automatic weapons.
There hasn’t been a single conviction for the killings, which
accelerated ahead of local elections in August 2016, although
police say they have arrested
several alleged hitmen.
The killings are roiling the
party of Nelson Mandela as it
prepares to elect a new leader
and chart the course of Africa’s
most-developed economy for
the next decade.
Experts and party officials are divided on whether the
victims were killed because of a
factional battle for the national
Aleksey Ulyukayev, in custody in Moscow on Friday, called the case ‘a monstrous and cruel provocation.’
NATO Chief Backs
U.S. Missile Work
Amid Kremlin Spat
BRUSSELS—The NATO secretary-general supported a U.S.
move to start research into
building missiles banned by a
Cold War-era pact, a plan meant
to pressure Russia to abandon
what the U.S. says is its development of such weapons.
The State Department said
last week that design work on
support for the U.S. and the
treaty. Some allies have held different views on whether Russia
has violated the treaty, and it
wasn’t clear whether NATO as a
whole would support the U.S.
campaign. “The United States is
not walking away from the INF
Treaty,” NATO Secretary-General
Jens Stoltenberg said.
The INF prohibits the production and testing of intermediate, ground-launched missiles,
but it doesn’t ban research or
design work on such weapons.
—Julian E. Barnes
ground-launched intermediate
missiles had started, a decision
Defense Secretary Jim Mattis
had began briefing allies on.
The Cold War-era accord,
known as the Intermediaterange Nuclear Forces Treaty, or
the INF, prohibits such missiles,
but the U.S. believes Russia is
violating that pact. Russia President Vladimir Putin accused
Washington on Thursday of
backing out of the agreement.
Ambassadors from the North
Atlantic Treaty Organization on
Friday issued a statement of
WORLD WATCH
AUSTRIA
Conservatives to Rule
With Nationalists
Austrian Chancellor Sebastian
Kurz on Friday night announced
his conservative party had cemented terms to form a government with the country’s anti-immigrant Freedom Party, in
Europe’s latest shift to the right.
The deal comes exactly two
months after the country’s parliamentary election, in which migration played a central role.
Mr. Kurz said the two parties
had agreed to govern on a platform of tax cuts, social welfare
and an increasingly tough fight
against illegal immigration.
Mr. Kurz, who at age 31 will
become the world’s youngest national leader, was foreign minister
in the last government, led by
the center-left Chancellor Christian Kern, a member of the Social
Democrats. Mr. Kurz’s center-right
Austrian People’s Party toppled
its former governing partner in
the vote, winning 31.5%.
—Zeke Turner
YEMEN
Houthis Strike Back
At Government Forces
Yemen’s Shite rebels, known
as Houthis, on Friday stepped up
VICTORIA JONES/PA WIRE/ZUMA PRESS
SYDNEY—An Australian investigation into decades of
child sex abuse, involving tens
of thousands of victims, called
for sweeping changes in the
Roman Catholic Church and
other organizations, including
making celibacy voluntary for
clergy and forcing ministers to
report abuse concerns that
come to light through confession.
The broad-ranging probe
urged Australia’s Catholic
Church to request the Vatican
make changes to canon law, including removing limits on the
time in which the church can
take action on child sex abuse
cases, as well as removing a
requirement to destroy documents relating to criminal
cases in matters of morals.
It recommended the government make it a criminal offense for someone to fail to report knowledge or suspicions
of abuse disclosed in a religious confession.
The report said confession
had “contributed to both the
occurrence of child sexual
abuse in the Catholic Church
and to inadequate institutional
responses to abuse.”
“Church
leaders
have
viewed child sexual abuse as a
sin to be dealt with through
private absolution and penance rather than as a crime to
be reported to police. The sacrament of reconciliation enabled perpetrators to resolve
their sense of guilt without
fear of being reported,” it said.
In response, Catholic Archbishop of Sydney Anthony
Fisher warned against making
changes to confession. He said
focusing “on something like
confession is a distraction.”
“Any proposal to effectively
stop the practice of confession
in Australia would be a real
hurt to all Catholics and Orthodox Christians, and I don’t
think would help any young
person,” Archbishop Fisher
told reporters.
But the Catholic Bishops
Conference, a group of Austra-
BY GABRIELE STEINHAUSER
AND NTHABISENG GAMEDE
co Fo
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BY ROBB M. STEWART
Killings Shake South Africa’s ANC
n-
Australia
Callsfor
Changesby
Catholics
TIGHT SPOT: A Mercedes C Class car crashed into a luxury
apartment block in London early Friday. The driver exited unaided.
fighting with forces loyal to the
internationally recognized government of President Abed Rabbo
Mansour Hadi along the Red Sea
coast and western Yemen, forcing aid workers to withdraw from
the port city of Hodeida.
Mr. Hadi’s forces, backed by a
Saudi-led coalition, have made advances over the past week, capturing several rebel-held areas.
Fighting has escalated since the
killing of Yemen’s ex-president
earlier this month at the hands of
his onetime allies, the Houthis.
Yemeni officials said Friday
that foreign humanitarian workers with the United Nations and
other international organizations
have left Hodeida because of intensified fighting.
The Houthis claimed they ere
able to regain control of some areas captured by Mr. Hadi’s forces.
—Associated Press
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A8 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
OBITUARIES
H I L DA E I S E N
1917 — 2017
CHARLES R. JENKINS
1940 — 2017
Polish Holocaust Survivor
Heeded Brutal Advice
Army Deserter Fled
To North Korea
I
girlhood. “We had a good life,”
dancing to Jewish music and occasionally going to movies, she said.
“We didn’t know better.”
After the invasion of Poland in
1939, Jewish businesses were shut
down. Belongings were smashed or
stolen. Religious rites had to be
concealed. “We just closed ourselves up in the house,” she said.
Later, while other Jews were being rounded up, she escaped with
her first husband. He had blond
hair, looked “like a goy” and could
find odd jobs as a mechanic. They
moved from city to city.
“I
C
G . C R A I G S U L L I VA N
1940 — 2017
Executive Revved Up
Growth at Clorox
W
hen G. Craig Sullivan
was named chief executive of Clorox Co. in May
1992, the bleach maker’s stock
price dropped 5%. Analysts said
investors had hoped Clorox would
bring in an outside star rather
than handing the controls to a
company veteran.
The new boss, who studied accounting at Boston College, proceeded to surprise Wall Street by
accelerating growth and boosting
profitability at Clorox during his
11 years as CEO. He cleared out
executives who weren’t performing to his standards and ended a
tradition under which bonuses
were almost automatic and
spread evenly among executives.
He gave up his entire bonus
one year and generally cut down
on executive perks. His own office
shrank to the same space given
other managers, leaving just
enough room for a desk and a
small table. He did without a
driver and had no designated
parking space.
Mr. Sullivan’s boldest move
was the $1.6 billion purchase of
First Brands Corp. completed in
early 1999. It proved disappointing but brought in brands including Glad plastic bags and Scoop
Away cat litter.
In homage to the product that
made him rich, Mr. Sullivan had a
22-foot motor boat Bleachcraft.
He died Dec. 7 of cancer at his
home in San Francisco. He was 77.
—James R. Hagerty
co Fo
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n her early 20s, Hilda Gimpel
lost her parents and five siblings to the Holocaust. She
survived by fleeing with her husband, David, into a Polish forest
where they joined Jewish resistance forces, sleeping on the
ground in rain and snow through
two winters.
Near the end of World War II,
after her husband died, she
pleaded with a Russian military officer to provide an escort so she
could visit his grave. Cursing her
in the vilest terms, the officer said
her husband was lucky anyone
would weep for him. No one would
cry for her, he said. So why bother
visiting graves?
She later decided the Russian
had a point and was like a psychiatrist delivering brutal truths. She
had no time for crying, she told
herself: “You’re going to see what
the next day is going to bring.”
After the war she remarried another survivor, Harry Eisen. They
moved to Southern California and
made a fortune raising chickens to
produce eggs for supermarkets.
After selling the business, they
had time in old age to donate
money to Jewish causes and play
cards with other Holocaust survivors in Los Angeles.
The Russian was proved wrong:
When she died Nov. 22 at the age
of 100 at her home in Beverly
Hills, Calif., there were three children to grieve her, along with
eight grandchildren and seven
great grandchildren.
Hilda Gimpel was born April 25,
1917, in the Polish village of Izbica
Kujawska, about 100 miles west of
Warsaw. Her father was a baker.
Her mother bought grain from
farmers and sold it to mills.
In a video interview recorded by
the USC Shoah Foundation in
2001, she remembered a peaceful
struation in freezing weather without cloths or tissues.
When the war ended, she found
her childhood home in ruins and
reconnected with a young man she
had known as a girl: Harry Eisen.
He had survived the Auschwitz
death camp, and nearly all of his
family was gone. They decided to
marry.
“I’ll tell you the truth: I got
married out of fear, being scared
to be alone in this world, no family, no friends,” she said in the
video interview. “He had the same
feeling. He didn’t love me, I didn’t
love him.”
After three years in refugee
camps, they sailed to New York in
May 1948 aboard the SS Marine
Flasher. They took a train to Los
Angeles, where Mrs. Eisen had a
cousin. Mr. Eisen found a job
cleaning meat barrels in a hot-dog
plant.
Once they had saved enough
money, the Eisens bought 100
chickens and started a backyard
farm in Arcadia, near Los Angeles.
He managed despite a poor command of English. “I talked Jewish
to my chickens and they laid eggs,”
he told a California newspaper.
Mrs. Eisen washed and packaged
the eggs. Her husband loaded them
onto his bicycle and sold them on
street corners.
In the late 1950s, they moved to
Norco in Riverside County to expand their company, which became
Norco Ranch Inc. When they sold
the business in 2000, it had about
450 employees and annual sales of
$100 million.
Mr. Eisen died in 2012.
What others saw as big problems often looked minor to them.
“They always said, ‘Thank god we
live in America,’” said Mary Cramer, one of their daughters.
nese woman abducted by North
Korean agents in 1978, turned
him into a minor celebrity in
Japan, where he spent the last 13
years of his life.
The last survivor among four
American soldiers who crossed
into North Korea in the early
1960s, he died of heart failure
Dec. 11 at age 77.
Mr. Jenkins spent his final
years selling cookies at a store on
Japan’s Sado Island, the home of
his wife.
“If I did not do what I did, I
would not have my wife and my
girls, the three most important
people in my life,” he wrote in a
memoir.
—Jonathan Cheng
and Andrew Jeong
ly
.
BY JAMES R. HAGERTY
harles Robert Jenkins, a
U.S. Army soldier, suffered
decades of hunger and beatings after deserting to North Korea in 1965. At the end of his life,
he wasn’t sure he regretted it.
In the late hours of Jan. 4,
1965, Mr. Jenkins, who was stationed in South Korea, drank 10
beers and crossed the border into
the communist North.
For the next four decades, the
high-school dropout lived under
the close watch of his Pyongyang
captors—and appeared as an
American villain in North Korean
films and television shows—before his release and U.S. courtmartial in 2004.
Mr. Jenkins’s life story, and his
marriage to Hitomi Soga, a Japa-
t was filth, it was hunger,
fear,” she said. She shook
her head and added, “You
just couldn’t believe your eyes,
what’s happened around you.”
They ended up in the Parczew
forest with one of the ragtag
groups called partisans waging
guerrilla warfare against Nazi
forces. The men went on raids to
grab food or sabotage the Nazis by
blowing up bridges and rail tracks.
The women made potato soup in
buckets. One ordeal for women,
she recalled, was enduring men-
Read a collection of in-depth
profiles at WSJ.com/Obituaries
no
Continued from Page One
the countess, the 31st member
of her family to hold the title.
“But that shouldn’t be what it’s
for.”
The House of Lords, the second-biggest legislative body in
the world after China’s National
People’s Congress, helps the
elected House of Commons
shape laws. It is made up mostly
of politicians and others appointed for life by prime ministers. Members include political
donors, religious leaders and academics. There are 683 such
“life peers,” 91 “hereditary
peers” who inherit their titles,
and 24 bishops.
Next week, the Lords will begin debate on a set of proposals
to cut 200 members over the
next decade. Under the proposed plan, if not enough volunteer to retire, each political
party will have to choose lords
and ladies to send to the chopping block.
The debate has its peers in a
spot of bother. Will the chamber
get its first human-resources
department since it originated
in the 11th century? Will it vote
people out, like in a reality
show? Or will people be pushed
out under peer pressure?
n-
LORDS
If it is up to the political parties, “that’ll be bloody,” says Colin Low, 75, Lord Low of Dalston. “It obviously is tricky,
forcing colleagues to resign.”
Elizabeth Barker, 56, predicts
members will start to up their
game ahead of the cuts. “It’ll be
a kick up the backside for some
people to increase their work
rate,” says Baroness Barker.
The lords don’t receive salaries, but they get a £300, taxfree stipend for each day they
attend—plus access to plush,
red-carpeted hallways, dining
rooms and an elegant, woodpaneled tea room.
Over the last century, the
chamber has staved off most efforts to decrease its size, although there was a big cull of
hereditary peers at the end of
the 20th century under thenPrime Minister Tony Blair. In
post-Brexit-vote Britain, the
lords are sensing the anti-elite
tide of public opinion and taking
the matter into their own hands.
“We don’t want people from
outside coming and telling us
what to do, because they’ll mess
it up,” says Anthony Greaves, a
75-year-old lord.
Lord Greaves says the first to
go should be the hundreds who
don’t show up at all or who
come mostly because they enjoy
the convivial atmosphere. Each
political group should confront
CARL COURT/GETTY IMAGES
WORLD NEWS
The State Opening of Parliament in the House of Lords, which will debate cutting 200 members.
lords who don’t show up regularly and put pressure on them
to resign, however distressing,
he says. “This is an active working legislature. It’s not an oldpeople’s home.”
He hopes it doesn’t come to
voting—but it might. “Then it
gets a bit like ‘Strictly Come
Dancing,’” he says, referring to a
popular British reality show.
“Who goes this week?”
John Montagu, the 11th Earl
of Sandwich, suggests the cham-
ber restructure like a business.
To avoid pitting lords against
one another, the legislature
could institute a human-resources department, says the
74-year-old earl, who descended
from the man who popularized
the sandwich. Members should
be given some sort of pension
or severance packages, he says,
and be reminded they can still
use Parliament’s facilities.
While in session, the Lords
are supposed to scrutinize legis-
lation and conduct in-depth reviews on subjects ranging from
Brexit to the theater industry.
Legislation must pass through
both the Lords and the Commons to become law, but the
two chambers don’t hold equal
weight, and haven’t for more
than a century. Commons can
override the Lords.
Many lords say the biggest
problem is that prime ministers
keep appointing new ones,
whether to reward donors or
government service. In some offices, as many as 10 or 11 lords
and ladies sit side by side, making telephone calls and sending
emails.
Sally Hamwee, or Baroness
Hamwee, 70, says her office,
which she shares with eight others, is so congested she sometimes puts on orange earmuffs
to drown out the noise. She has
a mental list of 18 members she
thinks should go.
Mr. Blair expelled 666 hereditary lords in 1999. “It was a very
cruel act,” says Adrian Palmer,
himself a hereditary peer.
David Stoddart, 91, acknowledges he is a prime target because of his age, but he isn’t
budging yet. “I’ve had one or
two letters telling us how you
can resign,” he says. As a longtime Brexit supporter, Lord
Stoddart of Swindon will hang
around at least until the chamber votes on a controversial
Brexit bill. After that, he says,
he will think about it.
Alexander Carlile, 69, Lord
Carlile of Berriew, says he plans
to vote in favor of the proposals—but won’t be arguing fervently.
“We recognize that something needs to be done, but
we’re not a group of lemmings
heading for the cliff edge,” he
says. “The Mother of All Parliaments looks after her children.”
BY LAURENCE NORMAN
AND JENNY GROSS
BRUSSELS—European leaders agreed to advance Brexit
negotiations but called on U.K.
Prime Minister Theresa May to
tell them quickly what her government wants from a future
trade agreement so serious
talks can start in March.
A week after reaching an
agreement on the terms of Britain’s departure from the bloc,
EU leaders decided on Friday
afternoon to allow talks to
progress to the bloc’s future relationship with the U.K.
That immediately opens up
an intense debate in the U.K.
and Mrs. May’s Conservative
Party about Britain’s economic
policy after Brexit.
“Today is an important step
on the road to delivering a
smooth and orderly Brexit and
forging our deep and special future partnership,” Mrs. May responded on Twitter.
Maltese Prime Minister Joseph Muscat said the next step
is for the U.K. to say “very
clearly what it wants” from a
future trade agreement with
the bloc. “I think if this happens in the next few weeks, we
can start [talks] in earnest and
by March we can have a very
clear European position.”
The U.K. government has
been divided over what sort of
relationship it wants with the
EU, and what compromises proBrexit forces are willing to
make to maintain close trade
ties with the bloc.
Mrs. May is set to hold the
first of what is expected to be
several cabinet meetings on
Tuesday to decide the shape of
Britain’s demands for a future
trade agreement.
Until now, the government
has been clear it wants Britain
to leave the EU’s single market
and customs union, and to narrow the influence in Britain of
EU courts.
Dutch Prime Minister Mark
Rutte said Friday that if Britain
maintained those red lines, the
economic consequences could
be “huge.” He said leaving the
single market would place the
U.K.’s financial sector—which
would lose its ability to operate
automatically across the bloc—
at a considerable disadvantage.
Mrs. May has in recent
months struggled to quell dissension from members of her
top team, made up of both proand anti-EU politicians.
Foreign Secretary Boris
Johnson, one of the leaders of
the campaign to leave the EU,
in September undercut a major
Brexit speech Mrs. May was
planning by laying out his own
Brexit vision, including a definitive break from EU rules.
Supporters of a clean break
argue that only through a shift
away from the bloc’s rules can
Britain regain control of its future and lock in the trade deals
Britain will need once it leaves
the bloc. Mrs. May hasn’t said
where she stands on the issue.
The bloc also released negotiating guidelines that fixed a
timeline. They said formal talks
on a transition can begin in
January but that negotiations
on the future trade agreement
must wait until March, when
leaders will give a more detailed negotiating mandate to
the EU’s chief negotiator,
Michel Barnier.
ZUMA PRESS
EU, Backing Talks, Presses May on Trade Stand
Mrs. May plans cabinet meetings next week to outline U.K. demands.
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.
Saturday/Sunday, December 16 - 17, 2017 | A9
* * * *
IN DEPTH
TOWN
Continental Divide
Fountain
County, Ind.
Continued from Page One
chocolate soft-serve cones as a
child. They drove by the Fountain Trust Co., which sponsored the bagpipe band Ms.
Cronkhite joined in high
school to embellish her college
application, part of her escape
plan from the dismal prospects that hobbled many in
her rural generation.
Two miles out of town, they
passed the spot where Ms.
Cronkhite waited for the bus
to schools she felt discouraged
her ambition. “All growing up,
if we were too smart or too
successful or too anything,
there was always someone
ready to say, ‘Don’t be so
proud of yourself,’” she said.
Ms. Cronkhite had left with
a chip on her shoulder. Driving
past the landmarks of her
childhood, she wondered if she
could ever move home again.
Did she still hate Kingman?
Did Kingman still hate her?
Fountain Co. $45,925
San Francisco Co.
$87,701
Bachelor’s degree or higher
14.5%
54.8%
Unemployment rate, September
PRESTON GANNAWAY FOR THE WALL STREET JOURNAL
4.1%
2.9%
Change in business employment,
2014–15*
-7.0%
6.6%
Median value of owner-occupied
housing units, 2012-2016
$88,300
$858,800
*Excludes farm and government
employment.
Sources: Labor Department (unemployment);
U.S. Census (others)
THE WALL STREET JOURNAL.
University. Out-of-state rejections piled up.
Then came a fat envelope
from Carnegie Mellon University. The acceptance letter included a handwritten note:
“We love your background and
hope you’ll join us this fall.”
After Ms. Cronkhite arrived
at the Pittsburgh campus, she
found herself ill-prepared.
Math classes felt impenetrable. She struggled through biology tests her classmates
found easy. “I don’t even understand what I don’t understand,” she told a friend while
crying in her dorm.
Ms. Cronkhite found her
talent in her junior year, when
she learned Carnegie Mellon
offered a technical writing
program. She became its only
major in the Class of 2012,
which earned her the stage to
speak at the English Department graduation ceremony.
She landed a writing job
with Salesforce, a customerrelationship management software company, and moved to
the Bay Area. A year ago, she
became a freelance writer. “I
don’t know what it is,” she
said, “but I really love writing
a good user manual.”
She found a rent-controlled
one-bedroom in Oakland, Calif., for $1,500 a month and
hung her Carnegie Mellon diploma on the wall.
on heroin and passed out
while driving. Medics saved
him, but the friend overdosed
again a few weeks later.
Mr. Jeffries talked about
chasing a driver who was
swerving drunkenly. They
ended up at the man’s house,
where Mr. Jeffries had to subdue him with a Taser. It
turned out to be someone he
had known for years.
That night, Ms. Cronkhite
thought about Mr. Jeffries’
stories and saw them not as
more evidence of Fountain
County’s decay, but as a testimonial to someone who had
stayed and was working to
make it better.
Her friend Ms. Allen was
settled down with a hardworking millwright and no longer
overwhelmed by financial
troubles. The couple had two
children and another on the
way. She was doing haircuts
and color on the side.
Ms. Cronkhite and her boyfriend had fun camping in
Shades State Park. They went
with her parents to the MoonGlo bar across the Illinois line.
At home, though, things got
confusing. Ms. Cronkhite’s
mother, worn down by hard
Indiana winters, had persuaded her husband to buy a
house in Alabama, not far
from the Gulf of Mexico.
Would they be selling the
farm? Ms. Cronkhite wanted
to know. She couldn’t imagine
her father ever leaving Fountain County.
Mr. Cronkhite, 69 years old,
grew up nearby, as did his father and grandfather. He was
drafted out of high school and
served a year in Vietnam. Mr.
Cronkhite returned to Indiana
to care for his parents before
becoming a long-haul trucker.
While on the road, Mr.
Cronkhite was eager to return
home, where he would meet
his buddies at the Marathon
gas station for morning coffee.
He drove by Niagara Falls dozens of times and never
stopped to look at the view.
Ms. Cronkhite’s mother,
Martha Cronkhite, was the one
who always stopped to look.
She was born in Columbus,
Ind., and left as soon as she
turned 18. She attended a twoyear business school in Indianapolis and worked her way
up the ladder at a shoppingmall company.
Mrs. Cronkhite, 66, met her
future husband at a party in
1987. They were, in some ways,
opposites. She rarely indulged
in a chuckle. Once Gus Cronkhite got laughing, he would
keep it up until he cried.
With her parents’ move
now a certainty, Ms. Cronkhite
and her boyfriend settled onto
the back porch one night and
talked about the land that
stretched out before them. It
turned out, she wasn’t ready
to let it all go. “If I ever have
kids, they’re never going to
understand this huge part of
me,” she said. “I want there to
be a reminder of where I come
from and who I am.”
Ms. Cronkhite asked her
parents if she could keep the
farm, an idea that died with
the spreadsheet that showed
its low yields and high costs.
Instead, her parents decided to sell her about 10
acres, near a grove of poplar,
sycamore and cedar. They set
the same per-acre price Mr.
Cronkhite had paid in 1972.
Ms. Cronkhite plans to
build a small house on the lot.
She doesn’t intend to move
back now. But someday she
might. “I’m still a rural American,” she said.
co Fo
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AJ MAST FOR THE WALL STREET JOURNAL (2)
ly
.
Caity Cronkhite graduated from Carnegie Mellon University and found work as a technical writer in the San Francisco Bay Area.
Old wounds
In early 2015, Ms. Cronkhite
wrote a 5,300-word essay
about her battles with the Indiana public schools, an outpouring of resentment from
“an angry, forgotten, gifted
student in an educational system that asked nothing more
of me than that I fail.”
She posted the essay on the
blog site Medium, she said, to
spotlight the disadvantages
faced by rural youth. “My academic background at a lowranking, rural public school in
a backwater town wasn’t good
enough for admissions committees to take a chance on
me,” she wrote of her many
rejection letters.
Ms. Cronkhite didn’t think
people at home would care or
even notice. Her mother knew
Fountain County better. After
she read the post, she thought,
Oh goodness. What is this going to stir up?
“How dare you blame our
community for your misfortune,” one woman responded
after the essay surfaced on
Facebook. “How dare you belittle the people of the place I
call home.”
Some people empathized
with Ms. Cronkhite and
praised her candor. But the
vitriol of her critics was hard
for her to take. She called her
mother, crying. “I can’t even
no
The Cronkhites raised Caity,
their only child, in a white
farm house on 86 acres of
grazing and alfalfa land, fields
they rented to a local farmer.
Kingman was too small to
support its own public
schools, so Ms. Cronkhite commuted a half-hour to Covington, Ind., a town of 2,500. The
Cronkhite farm sat at the end
of the No. 9 school-bus route.
Ms. Cronkhite was the first
student picked up each morning and the last dropped off
each afternoon.
Quick and eager, she was labeled a gifted student, only to
discover, she said, that meant
receiving less attention from
teachers. When she asked for
challenging work or encouragement, she said, some
teachers warned her about being too big for her britches.
Before her freshman year at
Covington High, she wrote in
her diary: “I do want to get
out of here as soon as possible, & everyone knows it.”
The teenager set her sights
on the Indiana Academy for
Science, Mathematics, and Humanities, a state-sponsored
boarding school for bright
high school juniors and seniors. Her mother was immovably opposed.
Martha Cronkhite had aspirations for her daughter. When
Caity was still in grade school,
Mrs. Cronkhite had bought a
painting of a young woman in
a bonnet, her hand raised to
her brow, gazing across a
field, seemingly in search of
something more.
Yet Mrs. Cronkhite didn’t
want to lose her girl so soon.
“You may as well not fill out
the application,” she said.
“You’re not going.”
Ms. Cronkhite was inconsolable. “They always tell you
that you can do anything you
put your mind to, & I’ve put
my mind to this,” she wrote in
her diary that summer. “…I
want this desperately & have
been wishing & working &
praying for it since I was 11.”
Looking back, Ms. Cronkhite said, she was partly driven
by what she feared would happen if she stayed.
“I don’t remember a time
when my area wasn’t a hotbed
for meth labs, and then right
after that it was opioids, and
then the Great Recession hit
and all of the little factories
closed, and all the jobs went,”
Ms. Cronkhite said.
Fountain County’s population, which nearly reached
20,000 in the late 1970s, has
since fallen to less than
16,500. Kingman and the rest
of the county used to rely on
factory jobs across the state
line around Danville, Ill. Over
a span of decades, several of
the big employers closed or
shrank, a fate common to Midwestern industrial centers.
As Danville’s fortunes declined, so did Fountain
County’s, along with the
chances that a high-school education was enough to reach
the middle class. Just 14% of
Fountain County residents
have college degrees.
With no chance at boarding
school, Ms. Cronkhite decided
to graduate a year early from
Covington High, in 2008.
School administrators at first
resisted. The school gave in,
the family said, but at a price.
Despite her top grades, she
would be barred from contention for class valedictorian.
Ms. Cronkhite had her eye
on Harvard and the University
of Chicago, but she received
acceptance letters only from
Indiana schools: Purdue, Indiana University and DePauw
Median household income, 2016
n-
‘You’re not going’
San Francisco
County, Calif.
A basketball hoop off the main street in Kingman, Ind., Ms. Cronkhite’s hometown.
come back to Kingman because they just don’t want me
there anymore,” she said.
“You were born and raised
here just like they were,” her
mother replied, “and you have
a right to your feelings, too.”
During a visit home for
Thanksgiving in 2015, she met
her friend Holly Allen for
drinks at Noble’s Bar & Grill.
Ms. Allen, 27, had played flute
in the Covington High School
band, alongside Ms. Cronkhite,
who played clarinet.
Ms. Allen was pregnant at
19. She and the baby’s father,
an Iraq war veteran, parted
ways after several years together. When Ms. Cronkhite
graduated from Carnegie Mellon, Ms. Allen enrolled in
beauty school.
Ms. Allen talked about her
financial worries. She had
lived on food stamps. After
graduating
from
beauty
school, she couldn’t afford the
$150 to get her license.
Ms. Cronkhite returned to
California depressed about
Kingman. She had fallen hard
for the Bay Area. She felt her
own politics sliding left, merging with her surroundings. She
liked the racial diversity and
gay pride parades.
To her disappointment, she
found that the inclusiveness
didn’t extend to white, smalltown America. Friends at work
one day called her over to ask
about Cracker Barrel. “It’s just
like a chain restaurant we go
to treat ourselves,” Ms.
Cronkhite said.
A co-worker jumped in: “It’s
this really white-trash restaurant that overweight Midwesterners go to.”
Then came the invitation to
join some friends at Butter.
The San Francisco bar is decorated as a sendup of rural
white America, complete with
the front end of a Winnebago
RV. The menu included such
cocktails as the Whitetrash
Driver, vodka and SunnyD;
Bitchin’ Camaro, spiced rum
and Dr Pepper; and After
School Special, vodka and
grape soda.
“It was, all of the sudden, in
my face,” she said. “Things at
home we thought were nice or
parts of our culture were
treated with open scorn and
disdain and like a joke.”
Ms. Cronkhite sensed bigotry where she had sought tolerance and animosity where
she thought she had found a
welcome. The more she saw
big-city small-mindedness, the
more she softened on Kingman.
‘I just didn’t want to
go back and face all
the sadness,’ Caity
Cronkhite said.
Her ambivalence about the
Bay Area deepened after the
2016 presidential election.
More than 85% of San Francisco County voters cast their
ballots for Hillary Clinton; in
Fountain County, Donald
Trump got more than 75%.
When Mr. Trump won, she
watched her Bay Area friends
reel in dismay and spew anger
at those parts of the U.S. that
had delivered his victory.
She posted a Facebook message urging more dialogue between the coasts and the center of the country. “I am part
of the problem,” she wrote. “I
could have made a difference;
I could have engaged civilly
with the people I grew up
with—MY people, for better or
for worse—rather than shutting them out and putting myself on an ivory tower.”
To her hometown, she
wrote, “Growing up with you
gave me insights that my East-
Big-City Feeder School
Seven in ten of Carnegie Mellon’s
alumni live in one of these large
metro areas.
Percentage of Carnegie Mellon
University alumni by metro area
22.4%
Pittsburgh
13.6
New York
10.4
San Francisco*
5.9
Washington
Boston
3.8
Los Angeles
3.8
Philadelphia
2.9
Seattle
2.8
Chicago
2.4
San Jose
2.2
*Includes Oakland, Calif.
Source: Esmi
THE WALL STREET JOURNAL.
Holly Allen holds her daughter Piper at home in Hillsboro, Ind.
and West-Coast friends will
never understand, and I’m
glad to have those insights. I
am sorry that I didn’t try to
understand you better.”
Ms. Cronkhite was in a bar
in San Francisco when the angry responses began arriving
from back home. She ran into
the alley and cried.
The wife of her father’s
best friend suggested Ms.
Cronkhite wasn’t welcome
back in farm country.
“We are too busy anyway
working our asses off for 12-16
hours every day to feed you
‘coastal’ people and everyone
else in this world and I know
this may come as a surprise to
you, but that even includes
Blacks,
LGBTs,
Muslims,
Women and on and on,” wrote
Jahn Songer.
In an interview, Ms. Songer
said Ms. Cronkhite made
“Midwestern people sound ignorant.” Worse still, Ms.
Songer said, everyone knew
the post was written by Gus
Cronkhite’s daughter, a humiliation for a man who had spent
his life in that part of Indiana.
Ms. Cronkhite called her father to ask, “Is it true? Are
you ashamed of me?”
Gus Cronkhite didn’t want
to talk about it. Finally, he
said, “No, I’m not ashamed of
you. I’ve always been proud of
you.”
‘Who I am’
On Ms. Cronkhite’s return
to Kingman this summer, she
brought her boyfriend, Jake
Burkhead, a 27-year-old software engineer who was raised
in San Francisco.
“I want you to understand
how hard it was” growing up
in a place she had fought to
leave, she told him. When her
father picked them at the airport, though, Ms. Cronkhite
found herself wanting Mr. Burkhead to like Kingman.
The couple spent an evening with Ms. Allen, the single
mom, and Kevin Jeffries, 27,
who had played euphonium in
the school band.
Mr. Jeffries, an Indiana
state trooper, had long believed Ms. Cronkhite was destined for something bigger
than Kingman. He studied aviation at Indiana State University and flew helicopters in
the Army National Guard. He
didn’t want to meet for drinks
in Covington because he had
arrested several local bartenders and their customers. “The
frequent fliers,” he joked.
They decided instead on the
Buffalo Wild Wings in Crawfordsville, Ind., where Mr. Jeffries shared news from the police blotter. One friend from
Covington High had overdosed
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
SPORTS
SOCCER
Premier League Squabbles Over Spoils
Amid a resurgent season, club owners are arguing about financial changes that could upend the league’s competitive balance
BY JOSHUA ROBINSON
AND JONATHAN CLEGG
Kyle Walker of Manchester City, right, in action against Manchester United. Manchester City is among the clubs arguing for a bigger slice of revenues.
has existed in English soccer since people
first started kicking a ball into a net. But it
also came up with an economic framework
for that culture to thrive in with a visionary
agreement drawn up in 1992.
When the Premier League first formed, the
league’s owners agreed on a revenue-sharing
model that divided 50% of any money received
for U.K. television rights equally among all the
clubs, with a 25% share awarded based on the
final standings each season, and the other 25%
based on how often clubs appeared in live TV
games. Any money from foreign rights, meanwhile, was split evenly.
The result was that even as the flow of
money into English soccer exploded over
the following 25 years, the ratio between
the payments to the league’s top club and
those to its 20th-placed team would always
remain around 1.6. The equivalent ratio in
Spain’s La Liga or Germany’s Bundesliga,
meanwhile, has swelled to around 3.
The simple formula behind it was drafted
on a single sheet of Ernst & Young note paper in 40 minutes at the end of a meeting
that ran unexpectedly short. It became
known as the Premier League “Founders’
Agreement” and, until now, has always been
treated as Scripture.
n-
But the reality is that when it was written up, no one paid much attention to the
overseas income, according to Rick Parry,
the league’s first chief executive and the architect of the agreement. In fact, the league
was losing money overseas back then as it
paid broadcasters to carry its games.
“Nobody envisaged that it would be as
big as it is, so sharing those rights equally
was a concession they thought wouldn’t
matter,” Parry said.
Last season, however, those equal shares
from overseas TV money were worth $52 million per club. For a club like Sunderland,
which finished at the bottom of the standings
last season, that represented the largest individual payout of the $125 million total windfall
it received from the league. That is more than
twice as much as Real Madrid earned from
UEFA for winning the Champions League, the
most prestigious trophy in Europe.
But the Big Six argue that nobody in the
U.S. or Asia is tuning in to watch Sunderland.
According to several people in the room at
recent owners’ meetings, the league’s top
clubs are adamant that they deserve a larger
share of the overseas payments, because they
are the ones who drive overseas viewership.
Leading the charge is Manchester City,
THE COUNT
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
20s
V
Vancouver
40s
Calgary
30s
ttl
Seattle
20s
Portland
Por
P
d
Helena
l
20s
g
Eugene
no
d
t
Edmonton
Reno
10s
Ottawa
Bismarckk
Mpls./St.
Paul
p s / . Pa
oux FFalls
ll
Pierre Sioux
20s
Salt Lake
L
City
C
20s
10s
20s
40s
Billings
g
50s
60s
0s
0s
ip
Winnipeg
Boise
20s
<0
-0s
T
Toronto
k
Milwaukee
Buffalo
Detroit
40s
50s
60s
Hartford
rtford
New
Yorkk
ew Y
70s
Cleveland
Cl
Cleve
l d
Chicago
C
h
Des
es Moines
i
Ph
hil d lph
hi
Philadelphia
Pittsburgh
g
Indianapolis
d
p
Sacramento
p g
Springfield
Denver
Washington
hington
hi
gton D.C.
DC
40s
San
an Francisco
Kansas
Charleston
Charle
h
Colorad
C
d
Colorado
T
p k
Topeka
City
h
d
Richmond
p
Springs
St.. Louis
L
Lou
LLouisville
Lou
ill
hit
Wichita
Las
l igh
h
Raleigh
Nashville
h
ill
Vegas
V
Angeles
Los A
Ange
l
Charlotte
C
h l tt
50s
60s
Santaa FFe
Memphis
phi
70s
C
b
Columbia
Atlanta
Albuquerque
b
Phoenix
Ph
i
Oklahoma City
Warm
San Diego
Atl
t
70s
Little Rock
T
c
Tucson
Birmingham
i
h
El P
Paso
Dallas
ll
Jackson
Jack
Ft. Worth
th D
Cheyenne
20s
60s
bil
Mobile
Austin
A
ti
Anchorage
A
h
30s
40s
San
an Antonio
A
Honolulu
l l
60s
U.S. Forecasts
Rain
Cold
T-storms
Stationary
Snow
Showers
Flurries
Jacksonville
Orlando
l d
Tampa
90s
100+
70s
Miami
80s
60s
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
37 24 sn 28 16 sn
Atlanta
56 37 s
59 51 t
Austin
55 38 r
67 50 c
Baltimore
45 28 pc 46 34 pc
Boise
35 20 pc 33 26 pc
Boston
35 19 pc 32 24 pc
Burlington
28 12 sf 20 10 c
Charlotte
54 31 s
60 45 c
Chicago
44 30 pc 43 35 c
Cleveland
38 23 sf 42 34 c
Dallas
64 44 pc 65 48 pc
Denver
51 22 pc 40 24 c
Detroit
31 25 sn 38 31 c
Honolulu
79 71 pc 81 69 sh
Houston
59 48 c
69 56 pc
Indianapolis
49 33 s
45 37 r
Kansas City
59 39 pc 50 37 r
Las Vegas
60 43 s
58 35 pc
Little Rock
60 41 pc 58 40 c
Los Angeles
71 49 s
69 47 s
Miami
80 68 s
82 70 pc
Milwaukee
39 31 c
39 32 pc
Minneapolis
31 20 c
33 21 c
Nashville
56 37 s
52 45 r
New Orleans
60 55 pc 74 59 r
New York City
38 27 pc 37 33 pc
Oklahoma City
60 41 s
56 32 pc
60s
Houston
t
New
ew Orleans
70s
20s
80s
Omaha
h
10s 0s
Ice
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.
Hi
52
73
42
68
42
32
44
62
60
36
62
47
46
43
48
Today
Lo W
27 pc
53 pc
28 pc
51 pc
26 sf
12 sf
39 c
43 s
40 s
24 sf
48 s
21 pc
41 c
23 c
34 pc
Tomorrow
Hi Lo W
41 24 c
79 58 pc
40 32 pc
62 44 sh
43 36 r
28 14 pc
46 42 c
65 37 s
52 43 r
34 24 s
62 45 s
44 19 pc
48 44 r
38 22 c
51 38 pc
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
42
66
71
90
35
36
40
93
78
43
37
Today
Lo W
34 sh
57 r
43 s
70 s
18 s
30 c
32 sn
61 t
63 pc
39 pc
31 pc
Tomorrow
Hi Lo W
43 38 pc
65 49 sh
70 42 s
85 62 s
42 24 s
34 28 pc
40 36 pc
73 54 pc
75 64 c
51 37 c
48 33 sh
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
Hi
39
39
84
64
63
87
61
85
42
50
76
77
70
45
40
90
42
89
67
55
85
28
47
85
86
67
58
25
42
35
37
Today
Lo W
32 c
29 c
68 pc
53 r
56 pc
75 sh
46 s
61 s
34 s
28 pc
74 c
57 pc
46 pc
30 pc
38 r
75 pc
33 pc
76 s
43 s
39 sh
78 pc
12 pc
26 pc
77 pc
72 c
55 r
42 pc
9 pc
38 c
31 c
30 c
THE EAGLES ARE GOING TO MISS WENTZ
30s
Montreal
A
Augusta
Boston
A
b y
bany
Albany
30s
which has been owned by the oil-rich royal
family of Abu Dhabi since 2008, according to
several people with knowledge of the negotiations. City and its chief executive, Ferran
Soriano, feel particularly aggrieved, those
people said, because the club considers itself
the chief exporter of the Premier League—
the City Football Group umbrella company
owns stakes in five other clubs around the
world from Melbourne to New York.
Manchester City declined to comment on
the television rights negotiations.
Reaching an agreement will be difficult
because changes to Premier League rules
must be ratified by 14 clubs, or a two-thirds
majority. Any proposal that funneled more
money to the already dominant Big Six
would be unlikely to pass.
But one idea gaining traction is creating a
sliding scale that would see the top 10 clubs
increase their share based on their final
league positions. As many as 12 teams are
believed to be in support of this compromise, according to several people familiar
with the negotiations.
In the event of a stalemate, the Big Six
still have a nuclear option: break away and
form a new league, possibly with other European superpowers.
Tomorrow
Hi Lo W
39 33 pc
36 24 pc
86 66 s
62 53 c
60 48 sh
87 75 sh
66 50 s
88 62 pc
50 39 sh
49 27 s
82 75 r
80 59 pc
72 49 pc
46 26 s
42 30 sn
91 74 pc
44 40 pc
93 76 s
64 43 s
53 32 s
86 77 pc
28 19 s
41 29 s
84 76 sh
79 72 c
59 57 c
48 36 pc
25 22 pc
44 37 r
35 27 c
34 24 pc
At first glance, the Philadelphia Eagles
(11-2) seem to have an offense that is so high
powered that they can withstand the seasonending injury to quarterback Carson Wentz.
Eagles coach Doug Peterson expressed
confidence this week, “It’s been the next-manup mentality and that’s how we approach it.”
The next man up is Nick Foles, who led
Philadelphia to an 8-2 record in 2013 with a
league-high 119.2 passer rating but has otherwise been mediocre in his six seasons in the
NFL. Will mere competence be good enough
for the Eagles or will Foles need to somehow
reclaim the magic he displayed previously in
his career-best season?
Wentz was a leading MVP candidate for
good reason. He constantly had to bail out the
Philadelphia offense on third downs and especially third-and-long at rates far exceeding the
league average. The Eagles have faced third
down needing 6 yards or more 115 times this
year, a number surpassed by only the lowpowered offenses of the Broncos, Colts and
Bills. Despite that, Philadelphia leads the
league in scoring by a wide margin because
Wentz
Foles
Wentz seemed to simply shrug off being in
third-and-long. Wentz converted 40% of the
time in that situation compared with the
league average of 28%, according to Pro-Football-Reference. Foles’s career rate on third
down (with 6 or more yards) is just 26.3%. In
2013, however, he converted at 34.4%—which
is more within Wentz’s range.
The problem is that on shorter third-down
situations, Wentz was also superhuman at
68% compared with the NFL average of 54.5%.
Foles during his career has been subpar in
these spots (43%) and was below average
(50%) even in 2013.
When you add up the difference between
Wentz in 2017 and Foles in his career on third
downs, you get 26 more possessions ending
on third downs. That’s a lot of points to lose
considering the Eagles are scoring 2.6 points
per possession, according to Football Outsiders. So don’t be surprised to see Eagles punter
Donnie Jones getting a bit more action. It
turns out there might be a really big gap between a possible league MVP and the next
man up.
—Michael Salfino
The Long and Short
How the Eagles fared with quarterback Carson Wentz
compared with projected numbers for Nick Foles:
WENTZ 2017
STAT
FOLES*
39
36
17
193.5
119
312.5
Conversions: 3rd down (6+ yds.)
Conversions: 3rd down (1-5 yds.)
1st- and 2nd-down TD passes
Points on 3rd down
Points on 1st- and 2nd-downs
Estimated points
26
23
15
126.4
105
231.4
*Eagles with Foles based on Foles’s career rates
Source: Pro-Football-Reference, WSJ projections
MATT ROURKE/ASSOCIATED PRESS
Weather
DARREN STAPLES/REUTERS
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
LONDON—No sports organization in the
world celebrates the holiday season with
quite as much extravagance as the English
Premier League.
As the other major European soccer
leagues wind down for a winter hiatus, the
Premier League is gearing up for its annual
television extravaganza, a marathon of 40
matches in 13 days, broadcast in over 200
countries to an audience of billions.
But while viewers across the world are
captivated by action on the pitch, simmering tensions off the field are threatening the
very thing that makes the Premier League
so popular: its competitive balance.
In a series of tense meetings between the
league and the 20 club owners dating back
to last season, the so-called “Big Six”
clubs—Manchester United, Manchester City,
Chelsea, Arsenal, Liverpool and Tottenham—
have argued that they deserve a larger share
of the money the Premier League receives
for the sale of its foreign TV rights.
The dispute is rocking the league at a time
when its clubs are resurgent on the European
stage, qualifying a record five clubs for the
Champions League round of 16. But more
than that, it represents the first major challenge to the 25-year peace that has allowed
the Premier League to become the richest
purveyor of the world’s favorite sport.
“I think it’s just greed,” said David Sullivan, the co-owner of West Ham United.
“They’re very wealthy anyway.”
The Premier League’s foreign rights deals
are the envy of the rest of the sports world.
The most recent agreements, which covered
games from the 2016-17 season to 2018-19,
sold for a total of $4.3 billion among 80
broadcasters. The league’s U.S. deal with
NBC Universal, running from 2016 to 2022,
is worth $1 billion on its own. For the first
time in the league history, the next auction
could see revenue from the sale of overseas
rights exceed those from UK rights, which
went for $7.8 billion in 2015.
The Premier League declined to comment.
Unlike American leagues such as the NFL,
NBA and Major League Baseball, which rely
on the draft, salary caps and luxury taxes to
ensure parity, the Premier League doesn’t
have any official mechanisms to level the
playing field. And while English soccer is
dominated by a small handful of clubs, the
Premier League is, by some distance, the most
competitive of the major European leagues.
Over the past five years, the Premier
League champion has failed to win an average of 11.2 out of its 38 games, while the
champion of Spain only failed to win eight
times per season. In 2015-16, English soccer
also produced the greatest upset in the
sport’s modern history when lowly Leicester
City overcame 5,000-to-1 odds and lifted the
Premier League trophy.
“The Premier League works because everyone has got a bit of money to buy the big
names and pay their wages if they want to. So
there’s no easy games in the Premier League,”
Sullivan said. “What [the Big Six] don’t want
to be is under threat from the lower clubs.”
How the league developed this balance is
down in part to a never-say-die culture that
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.
Saturday/Sunday, December 16 - 17, 2017 | A11
* * * *
OPINION
THE WEEKEND INTERVIEW with Kemper Freeman | By Stephen Moore
Mr. Freeman’s bullishness on
brick-and-mortar makes him an
outlier. This past week Westfield
Corp., which operates some of
America’s biggest high-end malls,
sold out to a European rival, a
move said to have been motivated
by brutal e-commerce competition. “If Amazon were an animal it
would be an octopus,” a Journal
tech reporter recently observed—
its tentacles reaching just about
everywhere in the consumer economy, from products like pharmaceuticals, groceries and cars to
services like housecleaning. A CNN
report recently said that with anchor stores like JC Penney, Sears
and Macy’s shutting down, “America’s malls are rotting away” and
“the worst is yet to come.” But
not at Bellevue Square, where Mr.
Freeman says retailers are lining
up to pay $100 a square foot for
store space, about three times the
industry average.
His company is family owned
and has employed tens of thousands of people over three generations. It was Mr. Freeman’s grandfather who, 71 years ago, bought
10 acres in Bellevue, a town of
6,000, and developed 16 stores.
“The challenge is to find a place
where retail isn’t overbuilt.” If
he’s right, a severe real-estate
contraction is coming, and weak
stores and malls will get eaten
alive. Can Macy’s survive? Probably not: “They are run by bean
counters”—lawyers and accountants, not entrepreneurs.
How can a retailer flourish in
such a daunting environment? By
providing “emotional fulfillment,”
which is one of Mr. Freeman’s favorite phrases. He means the joy
customers take in seeing, touching, sniffing and testing the product before they pull out the credit
card. A computer can’t match that
experience, Mr. Freeman insists:
“We are social animals. We aren’t
robots who are going to make all
our purchases from robots.”
Who else? Apple! You can buy
your phone online, and they can
ship it to your house. But the Apple Store almost everywhere does
giant business. Microsoft—same
thing. Peloton is another one. They
make exercise equipment and have
just opened a store next to Nordstrom, highest sales in the country. They’re killin’ it.”
With a twinkle in his eyes, he
tells the story of Bellevue Square’s
1,800-square-foot Tesla showroom. Tesla is largely an internetbased company, but it helped produce one of the biggest days in
the mall’s history when Mr. Freeman says it sold close to $16 million worth of cars in 12 hours.
“There were lines 10 blocks long,
and the average person waited
five hours,” he recalls, “the way
people used to wait outside stores
on Black Friday. There was even a
sign in front of the store that read
‘limit of two cars per customer.’ ”
If that isn’t enough, he adds:
“Guess what’s one of our most
successful stores we just opened
up three months ago? Amazon.
They already mastered online
book sales. Why are they creating
a physical presence? Because they
know they need to connect and
fuse with you as a consumer.”
That’s what he means by emotional fulfillment.
He sketches out a strategy for
retail in the digital age. It starts
with making the mall an appealing place to visit. Parking is free,
he says, and the stores are full of
helpful employees. “We tell our
retailers that one of the primary
value added of retail shopping is
the expertise that the salesclerks
can offer customers,” he says,
“They better be knowledgeable
about what they are selling, or
people will go online or to a discount store.” He urges his tenants
to pay well more than the minimum wage to attract better employees, and he says most of
them do.
Mr. Freeman thinks too many
retailers have ignored the timehonored principle that the customer is king. He spends an hour
or two a day walking through
stores—“it’s my daily exercise routine”—and watching and chatting
with customers. “You can’t believe
the kind of intelligence I pick up
from these folks,” he says.
Just as Amazon is expanding
into services, shopping centers are
branching out into sports, exercise
and entertainment. “We have billiards, and Lucky Strike bowling,”
he says. “Top Golf simulated driving ranges is the latest big thing
out there.” For decades Bellevue
Square has hosted one of the largest art fairs on the West Coast.
“All of these activities are social
experiences that are big hits with
millennials,” the critical age cohort if malls are going to survive.
ly
.
The secret, says Bellevue
Square’s owner, is
to provide customers with
‘emotional fulfillment.’
Mr. Freeman’s father turned it into
a multimillion-dollar shopping complex before handing it off to Kemper, who has expanded it in what is
now a city of 140,000 across Lake
Washington from Seattle.
Early this month Mr. Freeman
and I stood on the roof deck of the
new Westin Hotel (which he owns)
and gazed down at tens of thousands of shoppers lining the fourblock stretch of Bellevue Way that
has become known as Snowflake
Lane. At 7:00 each night during
the Christmas season, artificial
snow starts falling as a light show
blankets the sky in brilliant colors.
Down the way comes a Rose Bowllike parade of floats, drummers
and sleigh-riding Santa Clauses.
“It’s the biggest outdoor Christmas
celebration in the country, and we
do it every night of the week,” Mr.
Freeman says with glee. “It’s the
kind of thing that brings people to
the mall. I pay for it all myself.”
Over the holiday season he estimates the parade attracts some
500,000 customers, who shop or
eat dinner in one of the mall’s dozens of restaurants.
Mr. Freeman insists that reports
of retail’s demise have been
greatly exaggerated, and he’s prepared to make the case with numbers. He tells me that a 2016 government report totaled retail sales
(excluding restaurants, gasoline
and automobiles) at $3.4 trillion
nationwide. He asks me to guess
how much of that was online. I say
15%. “No,” he says, “it’s 11%, or
$400 billion. And the online sales
is less than 10% when including
restaurants. Now, it used to be 3%,
so it’s growing, and it’s not
capped. But it’s still only a fraction
of the business. It may someday go
to 20% or 30%, but it’s not going
to take over the world.”
Mr. Freeman concedes that
shopping centers are tremendously overbuilt in America, but
he says that’s owing to a real-estate frenzy that long preceded the
online-sales phenomenon. By his
estimate, the U.S. has at least 50%
more retail space per person than
Canada—and Canada’s figure is
50% higher than Germany’s. “It’s
Germany that has it about right,”
he concludes—which would mean
the optimal amount of retail space
is less than half the current American total. “I’ve traveled all over
the country,” Mr. Freeman says.
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Bellevue, Wash.
f you prefer to do your
Christmas shopping the oldfashioned way—dressing up
and driving to the mall, or
strolling down New York’s
Fifth Avenue or Chicago’s Miracle
Mile—Kemper Freeman has some
holiday cheer. Despite the growth
of online commerce, retail stores
and shopping malls aren’t going
the way of the dodo.
Mr. Freeman, 76, owns Bellevue
Square, a multilevel mall east of
downtown Seattle, which features
scores of restaurants, hotels, department stores and novelty
shops. Foot traffic is up 21% this
year, Mr. Freeman says, and he is
planning a multimillion-dollar expansion—a bet that even in the
age of Amazon, Americans won’t
give up in-person shopping.
KEN FALLIN
How Retailers Can Thrive in the Age of Amazon
S
omewhat counterintuitively,
he argues that e-commerce is
“not our enemy” but is becoming complementary to retail.
Here’s his challenge to anyone who
thinks digital sales are set to crush
the old analog kind: “Explain Blue
Nile. They were one of the first to
sell online jewelry. Blue Nile
comes in and blows the door off as
one of our most successful stores.
M
r. Freeman has been working since age 9 and has
been in sales for just short
of 50 years. Would he consider going the way of Westfield by selling
out to a conglomerate? “Are you
kidding?” he asks, “I wake up every morning like it’s Christmas
Day. Even those days I’m getting
the crap kicked out of me, I always love the interaction with the
tenants, the employees and the
customers. You couldn’t blow me
out of here with dynamite.” Are
shopping malls here to stay? Mr.
Freeman certainly is.
Mr. Moore is a senior fellow at
the Heritage Foundation and a
consultant with FreedomWorks.
Washington Commuters Ask: For Whom Does the E-ZPass Toll?
n-
The end to the clean-exemption
finally arrived this month. Under
the new rules, which went live Dec.
4, any vehicle occupied by one person can use I-66 at any time. But
single drivers must pay a fluctuating toll, which rises with volume in
order to keep traffic flowing at 55
miles an hour. Legacy clean-plate
holders are not exempt, meaning
their drivers are now treated just
like everyone else.
Washingtonians have gone berserk over this change. The papers,
airwaves and interwebs have been
flooded with emotional stories
about drivers of clean-plate cars
suddenly faced with a cruel choice:
pay anywhere from $5 to $40 each
way on I-66, take slower alternative
routes, carpool, or abandon their
vehicles and take the bus or Metrorail. The toll is presented as a slap
in the face of environmentally responsible citizens and an example
of the privileges of the 1%.
Missing among this anecdotal
no
Washington
The big scandal
dominating conversations inside the
Beltway lately involves not indictments or forced resCROSS
but
COUNTRY ignations,
rather the new toll
By Brian E.
lanes on Interstate
Finch
66. During rush
hour, the one-way
tolls, which adjust on the fly according to traffic volume, have at
times risen above $40. “Clean” cars
such as hybrids also no longer have
a free pass. To believe the local media—social and mainstream—the
new system is a loss for fairness
and environmental justice, and a
win for rich commuters, who can
buy their way out of gridlock.
First, a quick primer on the vehicular hell known as I-66. Originating in Northern Virginia and terminating near the Watergate Hotel,
I-66 is one of the main arteries
serving downtown Washington. An
exurban driver heading into the city
during morning rush hour will first
encounter four eastbound lanes of
pure traffic headache. Upon reaching the famed Beltway—the ring of
interstates encircling Washington—
I-66 narrows to two perpetually
choked eastbound lanes. The reverse holds for a commuter heading
west after work.
To control traffic volume, Virginia
historically banned cars with only
one person in them from the inner
portion of I-66 during the morning
and afternoon rush hours. Since the
1990s, however, these high-occupancy rules have had a small but
popular exception. Owners of hybrids and other clean-fuel cars could
obtain a special license plate giving
them a pass to drive alone on I-66
during the restricted hours.
But when gasoline prices rose
dramatically in the early 2000s,
the number of cars qualifying for
the clean-plate exception grew
quickly. Other drivers and carpoolers revolted, angered by the sight
of solo Volt, Prius and Tesla drivers merrily winging their way to
work. The state stopped issuing
clean plates after 2011, but roughly
18,000 drivers with them, more
than a few of whom used I-66
daily, were grandfathered in.
outrage is any dispassionate analysis of the new system. Few reports
have noted that the toll has freed
thousands of single drivers from
threat of serious fines—up to
$1,000—for violating the defunct
rush-hour ban. Few consider the
An irrational subsidy
ends and traffic is moving
faster—so naturally
people are up in arms.
time and carbon being saved. The
Virginia Department of Transportation reported that during morning rush hour the first day after
the switch, speeds on I-66 averaged 57 miles an hour, up from 37
last year. That means “dirty” cars
spend less time revving in stopand-go traffic.
Also oddly absent are discussions
about the toll revenue. Estimates
vary widely, but conservative forecasts suggest about $18 million will
be collected each year. In an era
when anything resembling a tax cut
on the rich brings out pitchforks
and torches, it’s strange to see such
violent opposition to letting fat cats
voluntarily surrender their money
on I-66 every day.
Instead, much of the conversation has focused on the plight of
drivers with clean-plate cars, a tiny
segment of the commuting public
that has coasted on an exemption
granted decades ago. Some Virginia
lawmakers have called for capping
the tolls or even suspending the
program until adjustments can be
made, such as lowering the target
speed to 45 miles an hour. Questions have been raised about
whether the public was misled into
thinking the tolls wouldn’t run
much higher than $17. But the peak
toll is an outlier. The average morning toll the first day was $10.70.
Reinstituting the clean-plate exemption doesn’t make sense: That
would turn the old tertiary traffic
benefit—a waiver from rush-hour
restrictions—into a monetary subsidy worth thousands of dollars.
Neither does it seem reasonable to
suspend the tolls generally.
Even for folks like me who, as a
matter of principle, generally oppose giving government access to
more taxpayer money, the I-66
“scandal” is a pure head scratcher.
In a town where being referred to
as a numbers wonk is considered a
badge of honor, it is shocking to see
how quickly people dismiss rigorous
analysis on the merest suggestion
that the rich are pushing aside longtime enviro-friendly citizens.
Then again, little is surprising in
Washington these days. Especially
the traffic, which will inevitably
stink, regardless of tolls.
Mr. Finch is an attorney in
Northern Virginia.
LSU’s ‘Lazy River’ and the Student-Fee Sham
By Naomi Schaefer Riley
T
here may be no better symbol of American higher education’s wasteful indulgence
than Louisiana State University’s
lazy river. Part of a recently opened
$85 million recreation center, the
lazy river is where students ride
inflatable tubes on a water current
in the shape of the school’s initials.
As F. King Alexander, LSU’s president, said before the ribbon-cutting: “We’re here to give you everything you need. . . . I don’t want
you to leave the campus ever.” And
why would they?
When asked to defend the water
ride, the administration was quick to
respond that the students voted for
it. As the Chronicle of Higher Education reported in October, “a student
government resolution, passed in
2011, authorized a $135 fee increase
over three years to finance the project.” Kurt J. Keppler, vice president
for student affairs, explained, “I
didn’t have a dog in the hunt. We
could have built half as large an expansion. But when we talked to the
students, we’re seeing they want a
climbing wall, they want an outdoor
aquatic center.”
College student fees have been
rising for some time now. In a 2016
paper for the Review of Higher Education, Robert Kelchen of Seton
Hall University, found that between
the 1999–2000 and 2012–13 academic years, inflation-adjusted fees
grew faster than tuition—95% at
four-year public colleges.
The rise, he tells me, was driven
largely by state legislative caps on
tuition increases. So, for instance,
when Georgia started offering
merit-based HOPE scholarships to
state residents, the University of
Georgia lost tuition dollars. But
since the scholarships did not
cover fees, the school increased
those by as much as $500 a year,
according to Mr. Kelchen. Similarly, in 2007 the Missouri Legislature required that state schools
could not raise tuition by more
than the rate of inflation. In response, the schools raised fees by
138% between 2009 and 2015, according to a state audit.
But those fees were levied by
the administration. It’s even easier
to see the appeal of getting students to raise the fees themselves.
The university wants nicer facilities to recruit better and wealthier
students. And they can use a
“third-party payer” system to do it,
says Richard Vedder, an economist
at Ohio University.
Like Congress, universities
hand future generations
the bill for boondoggles.
Mr. Vedder recalls how his own
school took a vote of the student
body before building a $26 million
recreation center in the late 1990s.
In reality, though, the fee increases were mostly covered by either parents or student loans.
Moreover, because the universities
are usually taking out 30- or 40year bonds to pay for the building,
students today are actually saddling future students with higher
fees. “The university said building
the rec center was the ‘will of the
students,’ but I don’t think it was
a very informed electorate,” notes
Mr. Vedder.
Occasionally students push back.
At first in 2010 students at the University of Wisconsin rejected a proposal for a new $223 million recreation center funded in part by fees.
But in 2014, the plan was approved,
adding more than $100 a year to
each student’s bill. Only a third of
students actually cast a ballot, and
those for whom such fees are a burden are a minority.
If this sounds familiar, it’s because universities are acting like
Washington. U.S. representatives
spend money on unnecessary programs and projects all the time,
and taxpayers absorb the cost because each item individually seems
small. Much of the cost will be
passed down to future generations.
But like citizens, college students
(and parents) who are paying these
bills do “have a dog in this hunt.”
There are a lot of higher education
costs students can’t control, but
this is one they can.
Ms. Riley is a visiting fellow at
the Independent Women’s Forum.
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.
A12 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
OPINION
LETTERS TO THE EDITOR
A Tax Reform for Growth
Not Much Comfort in the Kate Steinle Verdict
Jason L. Riley (“San Francisco
Wasn’t a Sanctuary for Kate Steinle,”
Upward Mobility, Dec. 6) suggests
that jury nullification (jurors disliking
the president to the point that they
ignored the judge’s instructions) may
have accounted for the acquittal of
Kate Steinle’s killer on manslaughter
charges, among others. There is a
more straightforward explanation that
assumes the jurors did, in fact, act as
they were instructed.
California’s standard involuntary
manslaughter instruction (Calcrim
581) requires that the jury find beyond a reasonable doubt that the defendant acted with “criminal negligence,” which is explained as follows:
“[A] person acts with criminal negligence when the way he or she acts is
so different from the way an ordinarily careful person would act in the
same situation that his or her act
amounts to disregard for human life
or indifference to the consequences of
that act.”
To not find that the defendant
acted with criminal negligence, the jurors, thus, would have had to conclude that there was reasonable doubt
with respect to both “disregard for
human life” and “indifference to the
consequences of that act.”
The jury could have reached such
conclusions based on an assessment
that the defendant was shooting at
something other than people or that
the gun discharged accidentally.
I was as shocked as everyone else
at the verdict, but an unexpected outcome doesn’t mean that the jury
didn’t do its job properly.
DANA SHULTZ
Piedmont, Calif.
San Francisco released José Ines
Garcia Zárate despite a request from
federal agents to hold him for deportation. If their request was a legal request and San Francisco officials ignored it, why aren’t the city and the
officials involved responsible civilly,
in that the release of Mr. Zárate was
negligent. Why can’t the victims or
families of victims sue the jurisdictions that allowed their attackers to
have remained illegally in the U.S.?
ALBERT A. HAAB
Sarasota, Fla.
Perhaps it is time for President
Trump to send a message back to the
jurors and to San Francisco. The Navy
has a ship scheduled to be named the
USNS Harvey Milk after the late San
Francisco city supervisor. President
Trump should rename the ship the
USNS Kate Steinle.
KEVIN BURNS
Federal Way, Wash.
Executive Monuments Order Violates the Law
Regarding your editorial “The
Right Move on Monuments” (Dec. 6):
If President Trump, Interior Secretary
Ryan Zinke, Sen. Orrin Hatch or other
members of Utah’s congressional delegation are sufficiently troubled by
President Obama’s ill-advised designation of the Grand Staircase-Escalante
and Bears Ears national monuments,
the exclusive constitutional remedy is
to pass a bill for President Trump’s
signature to abolish or amend the
proclamation. Congress has always
handled the problem thusly, and no
president has ever lawfully reduced
the size of a previously designated
national monument with the stroke of
a pen. The Antiquities Act does not
empower President Trump to disturb
a prior national monument proclamation in any respect. The words of the
statute are as clear as a high desert
sunset—a president’s powers are
strictly limited to “declar[ing]” national monuments.
President Trump’s reduction of
these national monuments embodies
“federal overreach” by the executive
branch in derogation of the Constitution. This action by President Trump
parrots and furthers the rampant executive overreach of the Obama administration. Process is the heart and
soul of our constitutional order. Even
noble ends don’t justify unconstitutional means.
W. BRUCE DELVALLE
Crownsville, Md.
Staircase-Escalante has existed for
more than a decade. During that time
many small businesses have sprung
up, along with a vibrant tourism and
recreation economy. There was no apparent consideration of these economic interests.
This move reeks of the same special interest-driven swamp politics
that Mr. Trump campaigned against,
ignoring millions of public comments—many from the affected businesses mentioned above.
This does not represent, as the
Journal implies, a case of similar
stewardship but different steward.
The Stewart/Curtis bills rig local control to those who have long opposed
the conservation priorities that come
with national monument designation.
This action by the president represents nothing short of a full abandonment of the conservative conservation ethic championed by the great
Republican who proclaimed America’s
first national monument, Theodore
Roosevelt.
DAVID JENKINS
President
Conservatives for
Responsible Stewards
Oakton, Va.
F
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ouse and Senate conferees signed their bubble bracket that slammed some folks with
tax agreement on Friday, and the bill a 45.6% top rate. The 2.6-point top rate cut
that seems headed for passage next won’t increase the incentives to work by all
week is—Minor Miracle
that much, though the move
The GOP bill will spur is significant as a matter of
Dept.—better than what either body first passed. The investment and make the principle that tax reform
bill’s corporate reform is far
means lower rates for everyU.S. more competitive. one. And lowering the top
superior to its muddled rewrite of the individual code,
rate took political courage
but on balance this is the most
amid tendentious attacks
pro-growth tax policy in decades.
from left and right.
The bill’s biggest achievement is reforming at
A lower top rate also offers relief to produclong last the self-destructive U.S. corporate tax tive earners in high-tax states who will lose
code. The top U.S. rate of 35%—highest in the de- most of the state-and-local tax deduction. That
veloped world—will fall to 21% on Jan. 1. Cash subsidy for progressive politicians in Sacracurrently held overseas will be taxed at a 15.5% mento and Albany will be capped at a $10,000
one-time “deemed” repatriation rate, and Amer- write-off for property, income and sales tax. A
ica will move to a territorial system that allows full repeal would have been better policy, but
money to be taxed where it is earned. The bill in- the accommodation brings along Republican
cludes rules to prevent companies from conceal- Members in New York and California.
ing taxable income, especially on intangible asThe worst individual tax policy is the dousets such as intellectual property. And it sweeps bling of the tax credit for children to $2,000
away billions of dollars worth of industry-spe- from $1,000. This costs half-a-trillion dollars
cific loopholes that misallocate capital.
and contributes nothing to growth because it
All of this will go a long way to restoring doesn’t change incentives. Up to $1,400 of the
American competitiveness that has eroded over credit will also be refundable after Florida Senseveral administrations. Even Barack Obama ac- ator Marco Rubio staged a hostage crisis on
knowledged this problem, though he declined Thursday, and this means checks in the mail to
to do anything lest some large business end up households with no income tax liability. Mr. Ruwith a tax cut.
bio demanded this change as the price of his
The same economists who presided over the vote even after his child-credit amendment lost
weakest recovery since World War II now say on the Senate floor, 29-71.
none of this is needed with the economy finally
The long-term politics of the credit are worse.
growing at 3%. But the faster growth never ma- Mr. Rubio concedes such households don’t owe
terialized when they were in power, and this ex- income taxes but says they need relief from paypansion has been notable for slow business in- roll taxes, which fund Social Security and Medivestment and weak productivity growth.
care. But the way to do that is to propose cutting
This GOP tax reform—including five years of payroll tax rates. Mr. Rubio’s backdoor raid
100% immediate business expensing—is aimed means the payroll tax will be the new pot of cash
directly at that weakness to keep the expansion to redistribute income, and entitlement reform
going even as the Federal Reserve raises inter- could become that much harder.
est rates. This isn’t a demand-side “sugar high.”
The House and Senate compromised on the
These business tax changes are supply-side re- mortgage-interest deduction, which will now be
forms that will increase the economy’s produc- capped at $750,000, down from $1 million under
tive capacity.
current law. This is a small victory over the
Reducing the cost of capital should raise housing lobby, but Republicans couldn’t even
business investment and invite a capital inflow eliminate the deduction for second homes. Reto the U.S. More investment means more hiring publicans also won’t repeal the death tax,
and more productive workers, which is what in- though the exemption will be doubled to about
creases wages. Especially with a tight labor $11 million. A menu of energy subsidies surmarket, the share of income that goes to work- vives, and so does the loathsome alternative
ers should increase. After eight years of trying minimum tax that requires families to calculate
to redistribute income through higher taxes and two sets of tax assumptions.
more subsidies, why not try a return to growth
Some of these survive due to political supeconomics?
port and others are ways to pay for cuts elsei
i
i
where and comply with the Senate’s budget
The individual tax reform isn’t nearly as am- rules. One asterisk is that the cuts for individubitious. The GOP has rearranged some furniture als expire after 2025, though the political presto try to give everyone a tax cut while trying sure to extend them will be immense, especially
not to change the distribution tables of who for middle-income families.
pays taxes. The one bow toward simplification
In better news, the bill will repeal the Affordis nearly doubling the standard deduction to able Care Act’s individual mandate that pun$24,000 for married couples, which means most ishes Americans for declining to buy health intaxpayers will elect not to itemize.
surance that they can’t afford or don’t want.
Far more confusing is the reform for busi- This chips away at ObamaCare’s command-andness owners who declare income on personal control model, and may open the door for larger
returns, known as “pass-throughs,” which won reform.
i
i
i
a 20% deduction for some business income.
Republicans have been promising to reform
Smaller businesses deserve tax relief but the
deduction contains considerable risk of gaming. the tax code for decades, and Speaker Paul Ryan
For instance: A salaried manager at a corpo- deserves particular notice for years of intellecration would pay a top marginal rate of 37%, yet tual and political spadework. The House cama store owner gets a lower rate. This favors paigned on tax reform with its Better Way
some industries over others, and the better agenda, and Donald Trump made it a 2016
route would have been cutting the top rate to theme. This bill fulfills that promise.
For eight years the Democrats put income
the 1986 reform rate of 28%. Some lawyers, accountants and other professional services can equality over growth and ended up with less of
claim some income against the deduction. And both. Now Republicans are poised to enact a tax
you bet they will: Look out for the college bas- bill that on the whole makes broad prosperity
the priority. Next week the House and Senate
ketball coach who tries to become an LLC.
Yet Republicans deserve credit for at least will call the roll and we’ll see which politicians
trimming the top rate on individuals to 37% in Washington still think America is one of the
from 39.6%. The conferees dumped the House’s world’s great underdeveloped countries.
ly
.
H
REVIEW & OUTLOOK
Florida’s Legal Tourism
lorida has attracted high earners and ments to inflate pricing, perform unnecessary
businesses with its zero income tax, but repairs to homes following a storm, for examas night follows day the state has also be- ple, and then sue insurers when the exorbitant
come a paradise for plaintiff atcharges are questioned.”
Judges and politicians
torneys. That’s the dispiriting
The number of flood insurnews from the American Tort
ance assignment-of-benefit
turn
the
state
into
a
Reform Association’s annual
claims have soared to 28,000
trial-lawyer paradise. in 2016 from 405 in 2007.
survey of state legal climates.
The Sunshine State ranks
Lawsuits by auto-glass comas the top destination for litipanies against insurers have
gation abuse for the first time since ATRA com- increased by more than 1300% since 2012.
menced its annual report in 2002. Mainly to
A hotspot of legal abuse is the tony Miami
blame are plaintiff attorneys who won’t let an enclave Coral Gables, which sued the utility
accident or disaster go to waste, and they have Florida Power & Light Company after Hurricane
friends in high places of government.
Irma for a power outage. The city has a history
The Florida Supreme Court this year blocked of resisting the utility’s tree-trimming efforts,
a state law that limited attorney fees in medical and excessive foliage increased damage to
liability lawsuits against public hospitals. The power lines. Coral Gables this year also sued
4-3 majority ruled that law firms were constitu- short-term home-rental site FlipKey for listing
tionally entitled to a 25% cut of their client’s re- properties in the city as well as Facebook for
covery. In another case, the same court over- publishing user posts that criticized the city’s
turned a statutory limit on noneconomic employment of private security guards.
damages in malpractice cases—including claims
The forecast for Florida’s legal climate isn’t
for inconvenience and lost enjoyment of life.
bright. Bipartisan legislative majorities this year
The state Supreme Court has twice ruled killed bills to curb assignment-of-benefit and
that arbitration agreements between doctors workers compensation abuses, among other legal
and patients are invalid unless they include pro- reforms. GOP House Speaker Richard Corcoran,
visions that require health-care providers to who is expected to run for Governor next year,
first concede liability. This subverts the pur- has raked in donations from trial lawyers.
pose of arbitration and encourages more classThree justices comprising the state Supreme
action lawsuits. It may also violate the Federal Court’s current trial lawyer majority will be reArbitration Act, as one hospital has argued in quired to retire on Jan. 8, 2019—Gov. Rick
a cert petition to the U.S. Supreme Court.
Scott’s last day in office. Plaintiff attorneys
A legal racket has also developed involving have challenged Mr. Scott’s authority to appoint
assignment-of-benefit claims that allow policy- their replacements, and the case will be decided
holders to sign over their rights to third parties by the same judges. Florida has become a haven
(e.g., contractors and attorneys) who are later for taxpayers tired of being fleeced by politirepaid by insurers. The report notes that “some cians, but people may stop coming if they keep
attorneys and contractors then use these agree- getting pick-pocketed by plaintiff attorneys.
Consider the impact this rollback
will have on the businesses that depend on these monuments. Grand
Good Ways, Better Ways
To Donate Your Collection
Well-heeled or not, art collectors
have many points to consider when
planning the future of a private collection if the interest is beyond tax
implications and name recognition
(“An Alternative to Donating Art,”
Journal Report, Dec. 11). In reality, as
time goes on and the initial rush of
excitement fades from friends and
relatives, there may be little or no interest in the collection and a private
museum becomes a very expensive
storage facility.
If serious about the long game, go
for a brutally honest opinion and assessment of the value of and interest
in your collection from professionals
with no stake in your project. Include
a long-term comprehensive projection
of expenses and business scenarios.
IRS rules are constantly shifting and
no one knows the future, but I
wouldn’t look for the IRS to allow
more advantages for art collectors.
Many collectors don’t realize that
it is possible to negotiate very satisfying terms with museums, educational institutions or other nonprofits
for exhibiting, care and recognition,
i.e., control. This association can actually elevate a collection.
JAN LEONARD
Kansas City, Mo.
U.S. Should Help the Muses,
Revise Idiotic Ivory Policy
Regarding the letters of Dec. 8 on
the import of animal trophies: It is
paradoxical that the U.S. Fish and
Wildlife Service would consider lifting a ban on trophy hunting while at
the same time keeping an import ban
on antiques made with African elephant ivory, even those which are
over 100 years old. Although the Endangered Species Act allows antique
ivory items to be traded in interstate
commerce in all 50 states, objects of
historical, artistic or cultural importance are prohibited from entering
the U.S. since President Obama’s executive order was signed in 2014. As
a member of the Convention on International Trade in Endangered Species, the U.S. ought to first consider
lifting a ban on ivory antiques, which
has no nexus with the poaching crisis.
SCOTT DEFRIN
New York
Trade Commoditizes Labor
Regarding Nancy McLernon’s “Protectionism Is a Negative-Sum Game”
(op-ed, Dec. 11): Ms. McLernon is absolutely correct when she says trade
protectionism is a negative-sum
game. What she neglects to mention
is that free trade essentially commoditizes labor. It’s an issue of average
income versus income distribution.
JERRY JUNG
Birmingham, Mich.
Pepper ...
And Salt
THE WALL STREET JOURNAL
CORRECTION
Alexander Litvinenko was assassinated using polonium. A Monday Arts
in Review story on the best television
of the year, “Sex, Lies and Lots of
Spies,” misstated the substance.
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be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
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letters can be neither acknowledged nor
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“Sorry, but I need to curate
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* * * *
OPINION
I
n 2018, we have to do better,
all of us. We need to improve.
In the area of politics this
means, in part: sober up, think
about the long term, be aware
of the impression you’re making, of
what people will infer from your
statements and actions. So much
hinges on the coming year—who is
in Congress and what they think they
were sent there to do, the results of
the Mueller investigation. If the latter finds crimes and the former goes
Democratic there will be moves for
impeachment in 2019. There will be
international crises as always, but
2018 may produce one of unprecedented historical gravity in nuked-up
North Korea.
All of us need to sober
up, think about the long
term, and be aware of the
impression we’re making.
This is a dead-serious time, and
we keep forgetting it because the
times have been serious so long.
It might help if all public actors,
from leaders and investigators to
journalists and voters, made a simple vow to make it a little better,
not a little worse. The other night a
dinner partner marveled at the expensive new fitness monitor he
wears on his wrist. I wish there
were an Ethical Fitbit that could report at the end of each day that
you’d taken 12,304 constructive
steps, some uphill, or 3,297 destructive ones, and appropriate action is
warranted.
Alabama’s Senator-elect Doug Jones celebrates in Birmingham, Dec. 12.
When a candidate is equable and experienced it is not a sign of cynicism
and not evidence that he is “establishment.” It’s a sign he can maybe
do a good job—and win. Conservatives who are real conservatives
don’t ape the social-justice left and
make politics a daily freak show.
They keep their cool, argue their
case, build broad appeal and become,
in this way, politically deadly.
Which gets us as always to President Trump. The Alabama number
that should scare him was in the exit
polls. In 2016 Mr. Trump won the
state with 62% of the vote, to Hillary
Clinton’s 34%. Tuesday night the exits had him at 48% approve, 48% disapprove. And this within a national
context of good economic news.
Mr. Trump’s political malpractice
has been to fail, since his election, to
increase his popularity and thus his
power. He has a core but it remains a
core. He could have broadened his position with a personal air of stability
and moderation, and with policies
that were soft-populist. He has failed
to do so, primarily due to his self-indulgence—his tendency to heat things
up when he should cool them down;
his tendency always to make the situation a little worse, not a little better.
His tweets, his immaturity, his screwball resentments and self-pity alienate and offend.
Trumpism led by a competent or
talented Trump would have been
powerful and pertinent to the moment. It would have reoriented the
Republican Party in terms of understanding that its own base was
increasingly populist, yet also ideologically moderate. That new understanding hasn’t developed.
The great and fateful question
now, the one to which we may well
get an answer in 2018, is: Can this
man lead through a crisis? That is
the question that has to be on your
mind when you think about North
Korea. Can he be credible, persuasive; will Americans feel they can
follow him? Will the West? No one
looks forward to finding the answers
to these questions.
As to his foes in the other party,
the biggest silence in American political life is not from the Republicans,
who can’t stop arguing. It is from the
ly
.
By Peggy Noonan
Democrats when they are asked what
they stand for. What economic policy
do they want? What is the plan, the
arrangement they hope to institute?
What philosophy are they trying to
put in place? What in terms of foreign policy do they want?
Domestically the only thing
they’re clear on is identity politics.
Who’s going to unite or find the place
of common ground between the rising left and the older middle? What
program can accomplish that?
Donald Trump has been a great
gift to the Democrats. Opposition to
him is the one thing that keeps them
united. But he won’t be there forever—they’ll try to see to that!—and
when he’s gone, the squirrels will really begin to fly.
Finally the FBI, the Justice Department and the special counsel
look dinged right now. Those who
support serious probes to answer big
questions and thus support the Russia investigations, as I do, hope
whatever findings come from the
special counsel are and can be
treated with respect. To earn it the
investigators must appear every day
to be clean as a hound’s tooth. Is
that how it’s looking? Or are critics
getting ammunition?
Snotty, partisan text messages between FBI investigators, including
one in which an agent said he could
“smell” the Trump supporters at Walmart, expressed anti-Trump biases.
Government employees have a right
to political opinions, but the FBI, Justice Department and special counsel
should be running a tighter ship. During the Clinton-Lewinsky wars, the
left went after Independent Counsel
Ken Starr, sliming him as surrounded
by Republican operatives. It did him,
and America, no good.
We are a divided country. The
special counsel’s findings could
prove momentous. Everyone involved should sober up, think about
the long term, and be aware of the
impression they’re making.
co Fo
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DECLARATIONS
There is inspiration in the Alabama outcome. To see it in terms of
the parties or Steve Bannon is to see
it small. The headline to me: American political standards made a comeback. Roy Moore’s loss was not a setback for the GOP; it was a setback
for freakishness. It was an assertion
of prudential judgment by the electorate, and came as a relief. A friend
landed at JFK on an international
flight on election night. As the plane
taxied to the gate, the pilot came on
the PA and announced that Doug
Jones was in the lead. The entire
plane, back to front, burst into applause. “A big broad nerve was hit in
this thing,” said the friend, an American and political conservative. He
meant not only here but around the
world.
Thirty-three states have U.S. Senate races next year. Primary voters
should absorb what happened to Alabama Republicans after they picked
Mr. Moore. They took it right in the
face. They misjudged their neighbors. They were full of themselves.
They rejected the sure victories offered by other contestants and chose
a man whom others easily detected
as not well-meaning. They weren’t
practical or constructive and they
didn’t think about the long term.
They didn’t, for instance, take into
account that there were independents in the state whose support
could be gained with the fielding of
a more serious Republican.
And now they’ve lost it all. Voters
in coming primaries should observe
and absorb. There is something we
have been saying in this space for almost a decade, since the Sarah Palin
experience. Something happened
when she ran. Suddenly to seem real
and authentic some Republican candidates thought they had to be polar
and extreme. They had to show umbrage, signal resentment, wave guns.
But these are not indications of authenticity. They are a sign voters are
being played, probably by a grifter.
NICOLE CRAINE/BLOOMBERG
Alabama Teaches America a Lesson
Identity Politics Began in the American Revolution
I
n the standard conservative telling, “identity politics” has its
roots in postmodernism and the
protest culture of the 1960s. But for
a broader understanding of the tribalism that today besets both ends of
the political spectrum, look back two
centuries earlier, to the American
Revolution and its aftermath.
That was when Americans grappled most intensely with the idea of
“representation”—the question of
how a politician could speak on behalf of people who were different
from him. The debates took place
among wealthy white males, but
they nonetheless prefigured the
more diverse identity war that dominates discussion today.
Can a politician represent
constituents of drastically
different backgrounds?
It’s a very old question.
no
What exactly is identity politics?
In his recent book “The Once and Future Liberal,” Mark Lilla offers the
following illustration: “Conversations
that once might have begun, I think
A, and here is my argument, now take
the form, Speaking as an X, I am offended that you claim B.” In this view,
“white men have one ‘epistemology,’
black women have another.” The contention is that people with different
backgrounds can’t fully understand
each other’s experiences.
There is some truth to that. But as
Max Diamond has pointed out in
Quillette, fully accepting this premise
poses a grave problem for representative institutions. If identity politics
is true, then someone can’t be fully
enfranchised if his elected representative comes from a different identity group. If a politician can’t understand his constituents’ interests, how
can he act on their behalf?
Americans wrestled with precisely
that knotty logic as they forged a
new republic. The colonists felt they
were not adequately represented in
the British Parliament, whose members did not understand the distinctive challenges and aspirations of
people in the New World. The Crown
tried to tamp down these concerns
by claiming colonists in fact benefited from “virtual representation.”
This idea was not so outlandish, as
Gordon Wood shows in his 1969 history, “Representation in the American Revolution.” Several townships
within Great Britain didn’t send anyone to Parliament, and most men in
Britain couldn’t vote anyway.
The colonists fought a war to establish a republic where they could
be represented directly rather than
virtually. But as Mr. Wood shows, the
revolutionary premises they had unleashed led to continued debate
about the meaning of representation.
After the war, the new American gentry, echoing the British, claimed they
could represent the whole of society—that educated men would pursue
a “common good” that superseded
any narrow group interest.
But populists soon started to level
critiques of the ruling class that are
redolent of identity politics today.
“Men from one class or group, however educated or respectable, could
never be acquainted with the ‘Situation and Wants’ of those of another
class or group,” as Mr. Wood paraphrases the anti-Federalist arguments ahead of the ratification of
the Constitution. “If the representatives were to know intimately the
people’s ‘feelings, circumstances,
and interest,’ they had to be truly of
them.”
A voter today might say “As a
woman, I don’t want male congressmen deciding whether I can get an
abortion,” or “How can multicultural
urban elites know what I am going
through as a downscale white Appalachian?” Similarly, an American in
1783 might have said, “I’m an artisan;
I don’t want landed elites who know
n-
By Jason Willick
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nothing about my way of life deciding the inflation rate.”
The revolutionary period brought
an upsurge in identitarian consciousness—from ethnic groups like Germans and religious ones like Presbyterians, but especially from the
different occupations, perhaps the
most salient category of identity for
enfranchised 18th-century white men
in America.
The Federalists, led by Alexander
Hamilton, were horrified by these
new divisions. They believed gentlemen could represent the interest of
the whole society, even if that meant
many identity groups didn’t have a
direct say. In other words, the Federalists wanted to bring back a measure
of virtual representation. The Federalist view won the day in 1787 in Philadelphia, but it has failed to last.
Today the American spirit is hyperdemocratic, and demands for
ever more precise representation
have generally succeeded. Hamilton’s idea of a unitary nation,
steered by a benevolent elite, has
given way to a fractious and pluralistic republic where industries have
their own narrow lobbies and members of Congress have separate ethnic caucuses.
Without squinting too hard, we
can trace some of today’s political divisions onto the 18th-century divide.
The identitarians, both left and right,
are inheritors of the anti-Federalists’
vision. Conservatives and dissident
liberals who are trying to articulate
a common American identity, sometimes at the cost of certain groups’
“lived experience,” hew to the Federalists’ classical republican view.
Today’s identity conflicts over
race, sex and class reflect contradictions in the idea of representation
that have been present since Americans parted ways with King George.
Elites who want to slow the spinning of the identity-politics centrifuge need to defend the philosophy
of faithful representation-by-proxy
against the new hyperdemocrats—
that is, they need to prove that they
can impartially advance a kind of
common good without being a perfect reflection of the people who
elected them.
But that argument won’t go very
far as long as many Americans are
convinced that the elites function as
an identity group of their own.
Mr. Willick is an assistant editorial features editor at the Journal.
Mueller Should Ask for Help
This column has
urged Robert Mueller to widen his
eyes to the ways
Russian intelligence
operations influenced the election
BUSINESS
and aftermath, esWORLD
pecially through
By Holman W.
their effect on the
Jenkins, Jr.
FBI.
That said, I’ve
seen no evidence that Mr. Mueller is
aiming to hang Donald Trump out to
dry. His indictments of Paul
Manafort and Rick Gates are unrelated to the Trump campaign. He
charged Mike Flynn and George Papadopoulos with lying to investigators—he needs witnesses who don’t
lie—but he did not seek to establish,
as prosecutors often do, underlying
crimes to be charged later against
higher-ups.
It might be worth looking back to
the investigation Mr. Mueller, as a
private lawyer, conducted for the
National Football League in the Ray
Rice case. He issued a report clearing the NFL on a very narrow matter: whether anybody in the league
office had seen or possessed a surveillance video of Mr. Rice slugging
his then-fiancée in a casino elevator. It fell to a separate fact finder,
retired federal judge Barbara Jones,
to fill in the larger, damning context
of the NFL’s botching of the entire
episode.
Now we learn that the Trump administration, at the same time that it
reportedly trusts Mr. Mueller to conduct his investigation fairly, is burbling about the possible need for another special counsel to investigate
the larger context of the Russian investigation.
Appointing special counsels is a
constitutionally dubious practice;
Congress already has plenty of potential investigative juice of its own
to expose larger contexts and facts.
And yet the Trumpian instinct is not
wrong.
Mr. Mueller was handed a counterintelligence investigation—a hunt
for the truth about Russia’s role in
the election, not a hunt for a Trump
crime. Still, it has become unrealistic
now to expect him to cover the widening gamut of matters that properly
come under the heading of Russian
influence—and it would help if he
publicly said so. Mr. Mueller would
clear the air by saying the following
The Russia special counsel
should say frankly what
he’s not investigating and
what others should.
things need to be investigated, even
if he’s not going to do it: James
Comey’s intervention in the Hillary
Clinton email matter; the Trump dossier; attempts by Democrats to use
the FBI to get the Trump dossier allegations into the press before Election
Day; after Election Day, the use of illegal intelligence leaks to destabilize
the incoming administration.
Mr. Mueller needs to say something, and not just because of the partisan proclivities of some of his investigators. Even more astonishing is
word that the wife of one ranking Justice Department official worked during the 2016 campaign for Fusion GPS,
the secretive firm Democrats paid to
assemble the Trump dossier.
Let me state my own intelligence
“estimate” regarding these matters:
During 2016, the counterintelligence
activities of the Obama administration elided, informally and erratically (and clumsily), into an attempt
to protect Hillary Clinton and keep
Mr. Trump out of the White House,
then to delegitimize his election
when its efforts all went absurdly
and embarrassingly awry.
Secondly, Mr. Mueller, like Mr.
Comey before him, can be expected,
for the sake of his ex-agency, to step
daintily around these minefields—
i.e., engage in a coverup—on his way
to clearing Mr. Trump of any allegation that he engaged in a conspiracy
with Russia to commit crimes.
Luckily, Americans have another
vessel of investigative juice to call
upon—the press. The media routinely rely on unnamed sources who
are willing to violate duties of confidentiality to make new facts available to the public. It’s time for some
in the press to do the same.
Who was the source or sources
that last week misled CNN about the
date of an email received by the
Trump campaign to make it seem
like the campaign was illegally in cahoots with WikiLeaks? No sooner
had CNN posted its false scoop than
CBS and MSNBC confirmed it. It’s
hard to believe CNN, CBS and
MSNBC don’t have Rep. Adam Schiff
on speed dial. And by the “circumstantial evidence” standard that Mr.
Schiff has applied to Trump collusion allegations, he would be my No.
1 suspect. Nobody’s reputation is
more at risk if the Trump-Russia
conspiracy fails to pan out.
Whoever it was, don’t underestimate the significance of this episode.
A source or sources the media has
apparently conditioned itself to rely
upon seems to have deliberately (and
desperately) planted a fake story
about Mr. Trump just as revelations
about the possibly tainted nature of
the FBI’s role in the 2016 election
were pouring forth.
Unfortunately, many in the press
are not as intrepid as they like to
think. They see only the stories they
are not afraid to see. To acknowledge that Mr. Trump, in some instances, has been unfairly maligned
is not to turn him into an admirable
character. As exit polls and Trump
supporter interviews show, even
many Trump supporters recognize
all the ways he falls short of admirable. But there are other truths that
also matter. The American people
deserve better than a coverup.
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EURO $1.1748
YEN 112.61
MetLife Discloses Pension Bungle CEO
BY LESLIE SCISM
MetLife Inc. said it had
failed to pay monthly pension
benefits to possibly tens of
thousands of workers in accounts that it has on its books
as part of its large retirement
business.
The New York insurer said
it is seeking to find the retirees who are owed money and
who generally have average
benefits of less than $150 a
month. It said it believes the
group represents less than 5%
of about 600,000 people who
receive certain benefits from
the firm.
The discovery of the overdue money and the process of
locating the missing people to
pay them would require
strengthening
reserves,
MetLife said in a filing. The
company also said the amount
“may be material to our results of operations.”
The workers affected by
Friday’s disclosure were likely
owed a defined amount of
monthly income when MetLife
took on responsibility for the
pensions from their employers, under a booming business
known as pension risk transfer. MetLife didn’t say in what
years it had acquired these
particular pension plans, how
many different plans the people were involved in, and how
many years of missing income
was owed.
Some Wall Street analysts
assumed that the payments
could be 10 or more years
overdue. At $150 a month for
30,000 people—5% of the
600,000—over 10 years, that
could be up to $540 million.
Analyst Thomas Gallagher
of Evercore ISI estimated that
The insurer said it
failed to pay monthly
benefits to possibly
thousands of retirees.
the fourth-quarter charge
against earnings would be in
the $200 million to $400 million pretax range.
Another analyst, Jay Gelb
of Barclays, estimated up to $1
billion pretax, which would assume many more years of
owed money.
In an investor outlook call
Friday, MetLife Chief Financial
Officer John C.R. Hele said
that the people owed money
were beneficiaries whom
MetLife had “sought to locate
over time unsuccessfully.”
Mr. Hele added that the disclosure won’t affect the firm’s
buyback plans in 2018, based
on what MetLife knows now.
The company’s disclosure
recalls a scandal that played
out across a large part of the
life-insurance industry in recent years when state insurance regulators identified that
there were billions of dollars
of overdue life-insurance policies on insurers’ books.
In 2012, MetLife agreed to
pay $40 million to settle a
multistate probe of its handling of death benefits, in a
deal that was expected to pay
more than $400 million to
heirs of life-insurance policyholders.
In Friday’s filing, MetLife
said that it is “improving the
process used to locate a small
subset of our total group annuitant population of approximately 600,000 that have
moved jobs, relocated or otherwise can no longer be reached
via the information provided
for them.” It said it is using “a
wider set of search techniques”
made available through advances in data technology. The
company said it would provide
more disclosure when it reports fourth-quarter results.
The business of pensionrisk transfer, in which employers with old-fashioned pension
plans cut deals with insurers
to take responsibility for retirees’ monthly benefits, has
surged in recent years.
co Fo
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Private-Equity Firm Breaks From the Pack
It's rare for private-equity firms to participate
in hostile takeover bids.
Silver Lake has reaped more than $4 billion in gross proceeds
from its investment in Broadcom.
BY MIRIAM GOTTFRIED
AND DAWN LIM
Broadcom Ltd. has drawn
a lot of attention with its
$105 billion hostile takeover
bid for rival chip maker Qualcomm Inc. Behind the scenes,
Silver Lake is playing a major
role backing Broadcom, in an
unusual move that breaks
with an unwritten code
among private-equity firms.
Silver Lake and other buyout shops have always tended
to work constructively with
management teams, concerned that unwelcome moves
will alienate prospective partners. Only nine deals have
been completed in the U.S. in
which a private-equity firm
participated in a hostile bid
since data provider Dealogic
began keeping records in
1995. None was done by Silver
Lake and all have been under
$2 billion.
But private-equity firms
are under pressure to find
new ways to earn the rich returns they have historically
Please see SILVER page B2
THE INTELLIGENT
INVESTOR
By Jason Zweig
Broadcom’s share price (formerly Avago)
$300
200
5
4
3
100
1
0
2009
1
Target
Aquirer(s)
Year
WinsLoew
Furniture
Trivest
Furniture
1999
$255M
Quintiles
Transnational
Pharma
Services
2002
$1.7B
Plains
Resources
Vulcan Capital
Management
2003
$432M
Register.com
RCM
Aquisition
2005
$189M
SuperValu
(minority share)
Yucaipa Cos.
2006
$680M
Kellwood
Sun Capital
Partners Group
2007
$544M
Citadel
Broadcasting
Cumulus Media;
Crestivew Partners
2010
$1.6B
Talbots
Sycamore
Partners
2011
$178M
2016
$538M
2
’10
’11
’12
’13
’14
’15
’16
’17
Aug. 6, 2009: Silver Lake reaps a return of more than five times
its original investment, or $2.1 billion, through a gradual sale of
shares following Avago’s IPO.
2 May 6, 2014: Avago closes acquisition of LSI Corp., using $1
billion in convertible financing from Silver Lake.
3 Feb. 2, 2016: Avago completes acquisition of Broadcom,
changing its name. Silver Lake converts its debt investment to
Broadcom equity.
4 Nov. 6, 2017: Broadcom makes unsolicited bid for Qualcomm,
backed by a $5 billion commitment from Silver Lake.
5 Nov. 17, 2017: Broadcom closes deal for Brocade
Communications Systems.
SciClone
GL Capital Group,
Pharmaceuticals Bank of China
Group Investment,
Ascendent Capital
Partners, CDH
Investments
Health
Worries
Hit CSX
BY PAUL ZIOBRO
AND JACQUIE MCNISH
CSX Corp. lost about $4 billion in market value Friday after Chief Executive Hunter Harrison was placed on medical
leave, a stark reversal for investors who had shrugged off
concerns earlier this year about
the health of the renowned
railroad turnaround artist.
Mr. Harrison, 73 years old,
became ill last week after one
of his regular, multiday peptalks
with
management,
known as Hunter Camps, according to acting CEO Jim
Foote. The illness “led to medical complications,” he told investors on a call Friday.
Mr. Foote, who was appointed to his new role Thursday, declined to discuss details
of Mr. Harrison’s condition or
when he might return.
The railroad maverick, who
has struggled with respiratory
issues, has been using an oxygen tank in recent months and
was largely working from his
home in Wellington, Fla.
“I expected to be working
for Hunter for four years, and,
God, I hope he comes back and
we can continue to work together some more,” Mr. Foote,
63, said in an interview.
Mr. Harrison’s absence
leaves an executive team that
is still in the process of rebuilding after the exodus last
month of three senior executives, including chief operating
Please see CSX page B2
ly
.
Some Wall Street
analysts assumed that
payments could be 10
or more years overdue
Deal Value
Sources: WSJ Market Data Group (Broadcom share price); Dealogic (deals)
THE WALL STREET JOURNAL.
Stocks Push
To Records
The Dow, S&P 500 and
Nasdaq hit fresh highs on
tax-overhaul prospects...... B11
BY JACK NICAS
AND GREG BENSINGER
no
With the
U.S. stock
market brushing highs
again this
week, many
investors are chasing further
gains, and some are trying to
truncate potential losses.
You can do that with
what’s called a fixed indexed
annuity, a cross between an
insurance contract and a market-tracking index fund. Such
a product typically offers a
minimal guaranteed annual
return along with an assurance of no losses in years
when the stock market drops.
In exchange, it delivers less
than the full gain on stocks in
years when the market goes
up. It may also assure retirement income and some protection against inflation to
boot.
Unfortunately, these annuities are often marketed so aggressively that you could be
fooled into thinking you can
get stocklike returns at no
risk. You can’t.
According to Limra, a research group funded by the
insurance industry, sales of
fixed indexed annuities totaled $42.9 billion for the
first nine months of 2017.
That was down 9% from the
Please see INVEST page B4
In June 2016, Uber Technologies Inc. contractors
trained by the Central Intelligence Agency allegedly spied
on another firm’s executives
and sent live video to thenChief Executive Travis Kalanick in the company’s “War
Room.”
That summer, an Uber contractor allegedly began using
hacked phones and “signal-intercept equipment” to collect
data about phone calls between Uber’s opponents, poli-
ticians and regulators.
And several months later,
Uber employees allegedly
hacked into a rival’s systems
and collected “the license,
name and contact information” of all of its drivers—information allegedly delivered
directly to Mr. Kalanick.
These
allegations
are
among the claims made by a
former Uber official in a 37page letter delivered in May to
management that paints the
ride-hailing firm as a paranoid
company with a sophisticated
intelligence apparatus designed to gain an edge on ri-
vals and trick regulators.
The letter, written by the
former attorney of Richard Jacobs, a former manager of
global intelligence, was made
public Friday in a legal dispute
between Uber and Alphabet
Inc.’s driverless-car unit,
Waymo. The letter’s existence
surfaced days before the
scheduled start of the trial,
and portions of it were read
aloud at a hearing last month.
Known as the Jacobs Letter,
the document alleges Uber
employees and contractors
surveilled other companies’
executives and foreign offi-
cials, hacked into competitors’
systems to lift trade secrets,
impersonated protesters and
taxi drivers to undermine protests against Uber, and tapped
into a database of 35,000 taxidriver records to recruit new
drivers.
An Uber spokesman said in
an email: “While we haven’t
substantiated all the claims in
this letter—and, importantly,
any related to Waymo—our
new leadership has made clear
that going forward we will
compete honestly and fairly,
on the strength of our ideas
and technology.”
A spokesman for Mr. Kalanick didn’t respond to a request
for comment.
Uber last month confirmed
its security team did surveil
rival executives and said it ordered the team to stop, if it
hadn’t already. Uber CEO Dara
Khosrowshahi, who was hired
in August after months of
scandals, wrote to staff last
month that there was “more
than enough there [in the letter] to merit serious concern.”
Attorneys for Mr. Jacobs
didn’t respond to requests for
comment.
Please see UBER page B2
Regulators Eye ‘Influencers’ KKR to Buy Unilever
Unit for $8 Billion
BY MATTHEW DALTON
Influencers, the social-media stars courted by fashion,
beauty and luxury brands for
their legions of internet followers, are attracting a new
crowd—regulators.
These stars offer their fans
on Instagram, Facebook and
other platforms what might
seem like unscripted glimpses
into their daily lives, complete
with products and brand mentions—but sometimes without
disclosing that companies have
paid them in cash, goods or
services.
Regulators say such financial rewards—even those given
to influencers without explicit
demands in return—can run
afoul of longstanding rules
against deceptive marketing if
they aren't disclosed. Authorities in the U.S., the U.K.,
France and elsewhere are po-
BY BEN DUMMETT
AND SAABIRA CHAUDHURI
VALERIE MACON/GETTY IMAGES
The Fallacy of
Believing
Some Returns
Are Risk-Free
n-
‘Jacobs Letter’ Says Uber Hacked, Spied on Rivals
Actress Shay Mitchell has been asked about her endorsements.
licing social media to ferret
out potential offenders.
The Federal Trade Commission in September sent warning letters to 21 social-media
influencers asking them to disclose any financial arrangements with brands mentioned
in recent posts on Instagram.
Supermodel Naomi Campbell and “Pretty Little Liars”
actresses Shay Mitchell and
Lucy Hale, as well as bloggers
and reality-TV personalities,
were among those contacted
by the FTC.
“There are tons and tons of
Please see SOCIAL page B2
U.S. private-equity giant
KKR & Co. agreed Friday to acquire Unilever PLC’s margarine-and-spreads business in a
deal valued at €6.83 billion
($8.03 billion), making it one of
the largest European acquisitions by a buyout firm this year.
The Anglo-Dutch conglomerate in April announced plans to
sell the 145-year-old business as
part of a broader effort to boost
shareholder returns after rebuffing a $143 billion takeover
offer from Kraft Heinz Co. Unilever, which sells products
ranging from Dove Soap to Lipton tea, has been acquiring
faster-growing
consumer
brands, cutting costs, buying
back shares and increasing dividends to appease investors.
The sale “marks a further
step in reshaping…our portfolio
for long-term growth,” Unilever
Chief Executive Paul Polman
said Friday.
KKR beat out rivals Apollo
Global Management LLC and
CVC Capital Partners for the
margarine-and-spreads business. The deal comes at a time
when private-equity firms, flush
with cash, are scrambling to put
those funds to work through
major acquisitions. A recordbreaking $23.5 billion fundraising by Apollo during the summer highlighted the state of
play.
At more than $8 billion, the
KKR-Unilever deal would rank
as the second-largest privateequity transaction in Europe so
far this year after China Investment Corp.’s $13.7 billion deal
Please see KKR page B2
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 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* *******
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
Integrated Device
Technology................B2
Iran Aseman Airlines.A6
Bain Capital ................ B4
Barclays.......................B1
Boeing....................A1,B2
Boom Technology........B2
Broadcom .................... B1
Brocade
Communications
Systems....................B2
I
J
Japan Airlines.............B2
JPMorgan Chase.........B2
K
C
KKR ........................ B1,B2
Kraft Heinz ................. B1
Canadian National
Railway..............B1,B12
Clorox..........................A8
CSX.......................B1,B12
CVC Capital Partners..B1
Lockheed Martin.........B2
LSI ............................... B2
LVMH Moët Hennessy
Louis Vuitton............B2
D
Dell Technologies........B1
Deutsche Bank....A5,B11
F
Facebook......................B1
Flexjet ......................... B2
L
M-N
Macy's.......................B12
Mahan Air...................A6
Mantle Ridge ............ B12
MetLife........................B1
Neiman Marcus.........B12
P
Procter & Gamble.......A1
Prudential Financial....B1
Pukka Herbs................B2
Q
Qualcomm...................B1
R
Rabobank...................B12
S
Seagate Technology....B1
Silver Lake..................B1
Sirius XM Holdings .... B9
Société Générale.......B12
SpaceX.........................B4
Spike Aerospace.........B2
Symantec .................... B1
T
Temasek Holdings ...... B1
21st Century Fox........B3
U
Uber Technologies ...... B1
UBS Group.................B11
Unilever.......................B1
W
Wal-Mart Stores.......B12
Walt Disney................B3
Wells Fargo.................A5
X
Xiaomi.......................B11
INDEX TO PEOPLE
Banque, Denis.............B3
Barents, Brian.............B2
Bass, Robert ............... B2
Behnam, Behnam ..... B10
Berkovitz, Dan..........B10
Brégier, Fabrice.........B10
C
Campbell, Naomi.........B1
Carvallho, Orlando......B2
Chukumba, Anthony.B12
Connaughton, John.....B4
Cummings, Dan...........B4
D
Davidson, Jim ............. B1
de Longis, Alessio .... B12
E
Enders, Tom................B3
F-G
Foote, Jim...................B1
Gallagher, Thomas......B1
Gelb, Jay ..................... B1
H
Muilenburg, Dennis....B3
Musk, Elon..................B4
N
Narvekar, N.P. “Narv” B4
O
Hale, Lucy ................... B1
Hao, Kenneth..............B1
Harrison, Hunter.B1,B12
Hilal, Paul....................B2
Hutchins, Glenn..........B2
I
Olsen, John.................B4
P
Parcell, Rachel ............ B1
Polman, Paul...............B1
R
K
Ridge, Mantle ............. B2
Rourke, Mark..............B3
Roux, David.................B2
Kelly, Ned....................B2
S
Iger, Robert.................B3
L
Lam, Carrie................B11
Lavine, Jonathan ........ B4
Li, Charles.................B11
Sanborn, Cindy............B1
Shiller, Robert...........B12
Stump, Dawn............B10
Sullivan, G. Craig........A8
T
M
Ma, Jack....................B11
McNamee, Roger........B2
Means, Kathy..............B3
Mitchell, Shay.............B1
Mollenkopf, Steve.......B2
UBER
Tan, Hock .................... B2
Trump, Ivanka...........B12
Tucker, Jeffrey............B3
W
Ware, Jason................B2
walk-ins.” The letter alleged
that as of May, Uber still benefited from at least one such
source with access to executives at a rival.
In court testimony last
month, Mr. Jacobs appeared to
disavow some claims in the
letter, including that he had
direct knowledge Uber stole
Waymo trade secrets. He said
he hadn’t reviewed the letter
thoroughly after his attorney
at the time, Clayton Halunen,
wrote it.
Mr. Jacobs said Uber promised him $4.5 million to keep
the letter private, including $1
million to help Uber investigate his claims. He said he remains a consultant and is
barred from disparaging Uber.
Mr. Halunen was paid $3 million, according to court testimony.
Angela Padilla, Uber’s deputy general counsel, called Mr.
Jacobs an “extortionist” in
court last month. A person familiar with the matter said Mr.
Jacobs initially sought $21
million. His current attorneys
and Mr. Halunen didn’t respond to requests for comment.
Uber executives said they
were set to fire Mr. Jacobs after he transferred sensitive
work files to his personal
email. When he was confronted, he penned an email
detailing some of his grievances and resigned, they said.
no
Continued from the prior page
It is common for companies
to track its competitors and
gather intelligence on rival
products. But Mr. Jacobs alleges Uber went far beyond
typical corporate intelligence
gathering by using covert, military-style tactics and engaging in criminal activity.
“Uber has engaged, and
continues to engage, in illegal
intelligence gathering on a
global scale. This conduct violates multiple laws,” alleges
the letter, which is centered
on Mr. Jacobs’s employment at
Uber from early 2016 until this
past April.
Uber’s competitive-intelligence team often impersonated riders and drivers on rivals’ ride-hailing apps and
hacked into their systems to
understand how their apps
worked, identify security gaps
and obtain data on drivers to
recruit, Mr. Jacobs alleges.
Some employees also allegedly pretended to be taxi drivers and other opponents of the
company to infiltrate and
monitor private Facebook
groups and group chats on the
WhatsApp messaging app.
Uber also allegedly used human intelligence, including
moles at rival firms, which the
Uber team dubbed “virtual
KKR
Continued from the prior page
for warehousing operator Logicor Europe Ltd. in June, according to Dealogic.
Unilever’s spreads business,
which includes brands such as
Country Crock and I Can’t Believe It’s Not Butter, has suffered declining sales in Europe
and the U.S. for years as consumers switched to butter. The
lack of growth dissuaded
many of the major consumergoods companies from bidding, bankers have said, as the
sector increasingly invests in
healthier-food
lines
and
faster-growing personal-care
and home products.
In September, Unilever, the
world’s biggest tea maker, acquired Pukka Herbs Ltd., a
U.K.-based organic herbal tea
maker for an undisclosed
amount, and Korean skin-care
company Carver Korea for
about $2.7 billion. This month,
rival Nestlé SA, which is under
pressure from U.S. activist investor Third Point to boost
BY DOUG CAMERON
Lockheed Martin Corp.,
maker of the world’s first business jet, is planning a return
to the passenger-aircraft business after a two-decade gap
with a new supersonic plane.
The world’s largest defense
company by sales said Friday
that it is considering a joint
venture with privately owned
Aerion Corp., an aerospace
firm that aims to have a new
supersonic business jet in operation by 2025.
“We see civil supersonic
aviation as an emerging and
potentially substantial opportunity,” said Orlando Carvalho,
executive vice president of
Lockheed’s aeronautics unit.
Mr. Carvalho said Lockheed
will spend a year considering
whether to help build the 12passenger AS2 jet.
The project is one of three
vying to fill the void created
when the supersonic Concorde
passenger jet quit flying in
2003 following a fatal crash in
Paris. Boom Technology Inc.
last week said it secured investment from Japan Airlines Co.
for a 48-seat supersonic jet.
Boston-based Spike Aerospace
Inc. has been touting its proposed S-512 jet at trade shows.
Lockheed was once among
the largest passenger-aircraft
manufacturers, and in 1961 in-
The company is planning to help develop a supersonic business jet being designed by Aerion.
troduced the Jetstar business
jet, converting a design originally aimed at the military
market for commercial use.
The company’s role in the
commercial market waned in
the 1970s after its L-1011
Tristar wide-body jet failed to
gain traction against rival
planes built by Boeing Co. and
McDonnell Douglas Corp,
which merged in 1997. The last
Tristar was delivered in 1984.
If Lockheed proceeds in the
new supersonic project with
Aerion, one option would be to
build the jets at the defense contractor’s plant in Greenville, S.C.,
where it produces F-16 combat
jets and military cargo aircraft.
The AS2 would have a range
of 4,750 nautical miles flying
at up to 1.5 times the speed of
sound, cutting flight time between London and New York
from seven hours to 4½. Aerion executives estimate it will
cost $4 billion to develop. Private-equity billionaire and
aerospace enthusiast Robert
Bass has provided an undisclosed amount of funding.
CSX
co Fo
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B
Geltzeiler, Michael......B1
Giancarlo, J...............B10
Gibby, Jessica ............. B2
Graham-Taylor, Lyn .. B12
n-
A
Aboulafia, Richard......B2
Lockheed Tries New Tack
AERION CORP.
B
H
Harvard Management B4
Hennes & Mauritz......B3
HNA Group................B10
HSBC ......................... B12
Hulu.............................B3
Netflix.........................B3
NXP Semiconductors..B2
shareholder value, struck a
deal to acquire Canadian vitamin maker Atrium Innovations
Inc. for $2.3 billion, including
debt.
Private-equity firms often
bet they can operate businesses
that are carved out from the
parent companies more efficiently by employing a dedicated management team and resources that the unit might
otherwise not get as part of a
larger, more-diversified entity.
The spreads deal caps years
of speculation about whether
Unilever would sell the business, which is tied to the company’s creation.
Unilever was founded in 1929
through the merger of British
soap maker Lever Brothers and
the Netherlands’ Margarine
Unie, which began making the
plant-derived spread in 1872.
Three years ago Unilever announced it was hiving off its
U.S. and European margarine
business into its own “baking,
cooking and spreads” unit,
which would allow it to manage
its own costs and make decisions independent of the rest of
the company.
Continued from the prior page
officer Cindy Sanborn. Mr.
Foote, only recently hired as
operating chief, was a marketing executive at Canadian National Railway Co. when Mr.
Harrison led a turnaround of
the Canadian company.
Several analysts said they
were worried Mr. Harrison
wouldn’t return, while some
investors and governance experts called on the company to
disclose more about the CEO’s
health condition.
CSX had a tough decision in
hiring Mr. Harrison.
Activist investor Mantle
Ridge earlier this year pushed
to replace five of CSX’s directors and install Mr. Harrison as
the company’s CEO.
The board initially resisted
the change, citing, in part, concerns about Mr. Harrison’s
health.
But members ultimately
reached a deal with Mantle
Ridge after CSX shares surged
on news of Mr. Harrison’s potential appointment, adding
about $10 billion in market
value to CSX in January. The
company awarded—and investors approved—Mr. Harrison a
four-year contract, including an
$84 million payment.
Since his appointment,
shares have traded at a higher
multiple versus other rail-
SOCIAL
Continued from the prior page
endorsements out there,” said
FTC attorney Michael Ostheimer. “Some people are
making adequate disclosures.
Some are not.”
With consumers’ eyeballs
increasingly directed to socialmedia networks, brands are intensifying efforts to woo influencers with perks and cash. In
return, brands expect influencers to trumpet them to followers, who can number in the
tens of millions.
Brands and influencers also
have agreed on so-called affiliate marketing services, which
allow influencers to earn commissions based on the traffic
or sales that they drive from
their blogs and social-media
accounts to companies’ e-commerce operations.
The FTC letters and responses were reviewed by The
Wall Street Journal. Several influencers said they were unaware that their social-media
posts risked violating deceptive-advertising rules.
Ms. Mitchell, in a response
to the FTC through an attorney, said she was “under the
impression that a clearly articulated ‘Thank you’ would satisfy applicable FTC requirements” to disclose her
relationship with Epic Road, a
luxury travel company she
mentioned in recent posts. Ms.
Mitchell said she received
travel services from Epic Road
in exchange for social-media
posts mentioning the company,
according to her response. The
FTC says that merely writing
Aerion, which is based in
Reno, Nev., has an order for 20
of the planned planes from aircraft-sharing specialist Flexjet
LLC, though the deposits can
be refunded. Brian Barents,
Aerion’s executive chairman,
forecast demand for 300 of the
jets over the next decade.
The biggest hurdle remains
a ban on commercial jets flying at supersonic speeds over
the continental U.S. Other
countries also require ultrafast
planes to spend as much time
as possible over the ocean.
ly
.
G
General Electric..........A6
Goldman Sachs Group
........................... B11,B12
Daily closing share price
Mar. 6
Mr. Harrison becomes CEO
Dec. 14
Mr. Harrison
takes leave
Jan. 18
WSJ reports Mr. Harrison’s
aim for CSX shake-up
Source: FactSet
THE WALL STREET JOURNAL.
roads.
The shares, which were
trading around $35 in January
before Mr. Harrison was involved, fell 7.6% to $52.93 in
trading on Friday.
“Given that Harrison’s presence is obviously significant to
the share value, the board of
directors ought to be highly
transparent at this point,” said
Charles Elson, head of the
Weinberg Center for Corporate Governance at the University of Delaware. CSX board
members should tell investors
“what’s wrong with him.’’
CSX’s board chairman, Ned
Kelly, didn’t respond to requests for comment.
Mantle
Ridge,
whose
founder Paul Hilal is also a
CSX director, declined to comment.
At the time of his medical
leave, Mr. Harrison was eight
months into a turnaround
strategy he called “precision
railroading.”
The plan, which included
new train schedules, cost-cutting and terminal closures,
was beset with a number of
traffic congestion problems
and other issues that triggered
an outpouring of customer
complaints.
—Joann S. Lublin
and David Benoit
contributed to this article.
“thank you” to a brand in a
post isn’t enough to show
clearly that an influencer may
have received something free
from a company.
Sometimes
influencers
praise a product without receiving a financial reward. Ms.
Campbell, in a response to the
FTC from her attorney, said
she had no financial ties to
Globe-Trotter, a luxury luggage
brand she mentioned in a post.
In June, Ms. Hale tagged a
photo of herself on Instagram—where she has 19 million followers—holding a Fendi
bag at a polo event sponsored
by champagne maker Veuve
Clicquot. “Beautiful day in Jersey overlooking NYC for the
@veuveclicquot classic,” she
wrote.
FTC lawyers sent the
“Pretty Little Liars” star letters wanting to know if she
had any kind of financial relationship with Fendi; the
agency didn’t ask about Veuve
Clicquot.
Veuve Clicquot hired Ms.
Hale to host a live webcast of
the event and arranged for
Fendi to lend her the bag that
was visible in her Instagram
post, according to a spokesman for the brands, both
owned by LVMH Moët Hennessy Louis Vuitton SE. “She
was not obligated under any
agreement to carry the bag or
to post about it,” the spokesman added.
In a letter to the FTC, Ms.
Hale’s lawyer denied she was a
marketer or endorser for
Fendi. Still, “she has volunteered in good faith to delete
the posts and apologizes for
any confusion they may have
caused,” according to a copy of
the letter reviewed by the
Journal.
The agency can order
brands and endorsers to surrender money made from deceptive marketing practices.
To date, it has decided against
using that authority in enforcement actions involving influencer marketing, the FTC’s
Mr. Ostheimer says.
GETTY IMAGES
A
Adobe Systems.........B12
Aerion..........................B2
Agilent Technologies..B2
Airbus...............A1,B2,B3
Alibaba Group...........B11
Alphabet......................B1
Ant Financial Services
Group.......................B11
Apollo Global
Management.............B1
AT&T............................B4
Naomi Campbell noted a brand but says she has no financial ties.
SILVER
Continued from the prior page
notched from buyouts as asset prices hover around highs
and investors have record
amounts of cash to spend.
With $39 billion in assets,
Silver Lake is one of the biggest players in technology investing.
It pledged $5 billion in
convertible debt to back
Broadcom’s bid for Qualcomm, announced last month.
As much as half of that would
come from the firm’s coffers,
making it Silver Lake’s largest
investment ever.
The wager is consistent
with the firm’s history of
backing portfolio companies
such as Dell Technologies
Inc. and Symantec Corp. as
they pursue consolidation
strategies. But the bid for
Qualcomm is bold even by the
standards of hostile takeovers.
Broadcom launched the effort with little warning and
then on Dec. 4 put forward its
own slate of 11 directors.
Five of the proposed nominees have some connection to
a current or former Silver
Lake portfolio company—including Seagate Technology
PLC and what is now Dell—or
have worked in the past with
Kenneth Hao and Jim Davidson, two of Silver Lake’s managing partners. A sixth, Michael
Geltzeiler,
is
a
consultant to Singapore state
investment firm Temasek
Holdings Pte. Ltd., an investor in Silver Lake funds that
has participated in a few of
its deals.
Temasek also has a small
stake in Broadcom.
In private equity’s early
days, pension funds that
backed buyout firms were often uncomfortable being
party to hostile takeovers.
Many private-equity firms
still have clauses built into
their limited-partner agreements prohibiting the practice, though Silver Lake
doesn’t.
Temasek distanced itself
from the Qualcomm bid and
said it had no prior knowledge of Mr. Geltzeiler’s participation. He “is one of a
number of advisers engaged
by Temasek,” a spokesman
said in an email. “These independent advisers are nonexecutive and are not involved in
the day-to-day management
and decisions of Temasek’s
business.”
Mr. Geltzeiler said in a
LinkedIn message: “My involvement on this matter is
completely independent of my
consulting assignment with
Temasek.”
Other Silver Lake investors
say they support the firm’s
move, pointing to its record
of doing audacious deals that
reap big returns.
Its purchase in 2009 of a
majority stake in Skype at a
$2.75 billion valuation paid
off just two years later when
Microsoft Corp. bought the
internet-phone service for
$8.5 billion.
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.
Saturday/Sunday, December 16 - 17, 2017 | B3
* * * *
BUSINESS NEWS
Disney Looks to Harness Hulu for Growth
BY BEN FRITZ
AND JOE FLINT
Twice the Slice
Disney’s deal with Fox would
double its stake in Hulu.
Time Warner
Walt Disney
10%
30%
30%
Hulu
ownership
30%
Comcast
21st
Century
Fox
©HULU/EVERETT COLLECTION
Source: staff reports
The entertainment company is betting on video streaming. ‘The Handmaid’s Tale’ is among original programming available on Hulu.
every media company as subscriptions to traditional paytelevision bundles decline. Mr.
Iger has essentially staked his
company and legacy on his
ability to make the shift, not
only through the $52.4 billion
Fox deal but by reorienting his
film and television operations
to focus on it.
Disney is ending a deal to
provide movies to Netflix next
year in favor of its own familyfriendly streaming service,
which will also feature original
series and films. More original
content for Hulu will be a priority as well if the acquisition
successfully closes, people
close to Disney said.
Hulu said in May 2016 that
it had more than 12 million
U.S. subscribers for its pro-
gramming service, which offers a feed with commercials
for $7.99 a month and a noncommercial feed for $11.99. It
loses money, according to Disney regulatory filings.
Subscribers get access to
episodes of current TV shows
the day after they air on a
host of networks including
ABC, NBC and Fox. They can
also watch original programming like “The Handmaid’s
Tale” and the Disney-produced
“Marvel’s Runaways,” plus a
large library of old shows, including classics like “Seinfeld.”
Netflix had 62.3 million
subscribers in the U.S. and
20.9 million overseas as of
Sept. 30. Amazon.com Inc.
doesn’t disclose how many
people subscribe to its Prime
service, which includes video
streaming.
Hulu also recently launched
a live-TV service to compete
against traditional cable and
satellite operators. It offers a
package of cable channels for
$40 a month, including Disney
networks such as ESPN.
That streaming service
could help Disney cushion the
blow if traditional pay-TV providers start aggressively selling packages that don’t include sports, Barclays analyst
Kannan Venkateshwar said in
a research note.
Disney would be able to
“control its own fate domestically which is likely to change
the narrative on ESPN,” Mr.
Venkateshwar wrote. ESPN’s
subscriber numbers have been
THE WALL STREET JOURNAL.
declining as a result of cordcutting
Hulu has been significantly
increasing spending on original and acquired content, increasing its budget from $500
million in 2012 to $2.5 billion
this year. Netflix has said it
would spend $7 billion to $8
billion next year and Amazon
is spending about $4.5 billion
this year on content, said people close to that company.
Mr. Iger said Thursday that
he wasn’t sure whether Disney
would accelerate Hulu’s content investment upon taking
control.
Hulu’s
content-licensing
agreements with Disney, Fox
and Comcast’s NBCUniversal,
which allow it to stream
shows from those companies,
expire in late 2019. Disney,
upon completion of its deal
with 21st Century Fox, would
own the Fox-produced content
but would potentially have to
renegotiate with NBCUniversal
if it wants to continue offering
its content beyond 2019.
ly
.
focusing on more mature content, Mr. Iger said on a conference call. Hulu would be “a
more adult-oriented offering,”
likely using content produced
by the Twentieth Century Fox
movie and TV studio and the
FX cable network, as well as
other sources, he said.
Together, the streaming
services could form a twopronged attack on Netflix.
Consumers could subscribe to
them individually or possibly
as a combined package. Disney’s ESPN is also launching a
sports-streaming service next
year, although the highest-profile games would remain exclusively on cable.
Building direct-to-consumer
streaming services is becoming increasingly important to
co Fo
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More than a decade ago, big
Hollywood players created
Hulu in a joint bid to fend off
the threat from piracy on websites like YouTube.
Now one of Hulu’s owners,
Walt Disney Co., is taking control of the subscription videostreaming service in the face
of a newer rival: Netflix Inc.
Disney’s deal to purchase a
large portion of 21st Century
Fox Inc.’s assets, announced
Thursday, would double its
30% stake in Hulu. For the
first time, a single company
would control the streaming
service’s direction. Comcast
Corp.’s NBCUniversal and Time
Warner Inc. are the other joint
owners, with 30% and 10% of
Hulu, respectively.
With one majority owner,
Disney Chief Executive Robert
Iger said Thursday, managing
Hulu will be “a little more
clear, efficient and effective”
than with equal partners.
The acquisition, he added,
“will enable us to greatly accelerate Hulu…and become a
more viable competitor to
those already out there.”
Disney believes Hulu fits
into its larger strategy of selling content to consumers directly, instead of solely
through distributors like cable
companies. The entertainment
giant already has plans to
launch
a
family-friendly
streaming service in 2019 that
would include its feature films
and children’s TV content, including new Star Wars and
Marvel series.
Disney would tailor Hulu to
complement that service by
Electronic Logs to Rule the Road
The Swedish fashion chain’s shares sank Friday. A London outlet.
H&M Takes Hit
From Weak Sales
no
STOCKHOLM—Shares in
Hennes & Mauritz AB’s fell
13% on Friday after the Swedish fashion retailer reported
weak quarterly sales as it continues to grapple with the
shift toward online shopping.
H&M has lagged behind
competitors in embracing ecommerce, and although its
digitization efforts are now in
full swing, accelerating online
sales aren’t fully compensating for a falloff in store traffic
in several established markets.
“The quarter was weak for
the H&M brand’s physical
stores, which were negatively
affected by a continued challenging market situation with
reduced footfall to stores due
to the ongoing shift in the industry,” H&M said.
Sales excluding value-added
tax fell 4% from a year earlier
to 50.39 billion Swedish kronor ($6 billion) for the company’s fiscal fourth quarter,
which ended Nov. 30. Analysts
were expecting 54.07 billion
kronor, according to data provider FactSet.
The company, which didn’t
give profit figures for the
quarter, will report full-year
earnings in January.
H&M shares closed at
170.40 kronor on Friday, an
8½-year low.
To better adapt to the new
retail environment, the company said it is accelerating its
transformation, including the
integration of physical and
digital stores.
It said the effort will entail
more store closures and fewer
openings.
Separately, H&M said Friday that it has extended its
collaboration with Alibaba
Group Holding Ltd.’s Tmall ecommerce platform.
H&M’s Monki brand is already sold on the platform in
China. The new deal will add
the H&M brand and the H&M
Home brand next spring.
n-
BY DOMINIC CHOPPING
Retail Woes
Shares of Hennes & Mauritz fell on Friday on disappointing sales.
Share price
Over six months
Revenue
Change from previous year
230 Swedish Kronor
30%
220
20
210
200
10
190
180
Friday
t13%
170
–10
160
J
0
J
A
S
O
N
D
2015
Sources: Factset (shares); S&P Capital IQ; the company (revenue)
THE WALL STREET JOURNAL.
’16
’17
A new rule requiring most
big rigs to be equipped with
electronic logs that record a
driver’s time behind the wheel
is triggering deep divisions in
the trucking world and raising
concerns that shipping goods
could get more costly and
complicated.
The federal regulation takes
effect Monday. Many shippers
and drivers expect the rule to
reduce the number of miles
trucks travel in a single day,
because the logs make it easier
for regulators to enforce existing rules limiting driving time.
Some drivers say they may retire rather than use the electronic logging devices, known
in the industry as ELDs.
That would reduce the number of trucks available for hire
at a time when big rigs are already in short supply. In November, the average cost to hire
a big rig in the spot market
soared 24% year-over-year, according to online freight marketplace DAT Solutions LLC.
Federal rules limit most
commercial truck drivers to 11
hours behind the wheel in a 14hour workday, but some drivers exceed those limits in completing a delivery or finding
parking. Paper logs are easier
to falsify, regulators say. Regulators say drivers caught without electronic logs after Dec. 18
may face fines, and starting in
April could be removed from
the road.
Most big trucking companies have used electronic logs
for years. But smaller carriers,
which make up the majority of
the nation’s fleet, have been
slower to upgrade. As of early
December, about 25% of
smaller fleets still hadn’t installed the devices, according a
survey by CarrierLists.com,
which compiles data about
trucking firms.
“All change is hard, particularly for folks who don’t have
the wherewithal,” said Mark
Rourke, operating chief of
Schneider National Inc., which
operates over 11,000 trucks
and has used the devices since
2010. “Us and other large,
well-capitalized carriers will
benefit.”
Steve Strickland, a 47-yearold trucker based in Lake View,
S.C., who uses paper logs to
track his time hauling meat
and produce across the coun-
try, said he plans to park his
leased big rig until at least
January. He is considering
whether to leave the industry
and take a job operating heavy
equipment for underground
utility work.
Some shippers and freight
brokers are paying hundreds of
dollars extra to convince carriers to accept their loads, said
Jeffrey Tucker, chief executive
of Tucker Company Worldwide
Inc., a freight brokerage and logistics firm.
Critics of the rule taking effect Monday say the logging
device’s cost of between $100
and $600 per truck, plus service fees, are burdensome for
small-business owners.
The Federal Motor Carrier
Safety Administration, which
regulates the trucking industry,
has granted some exceptions,
including a 90-day waiver for
trucks moving agricultural
commodities.
The agency is reviewing
other requests and “is working
with operators to ease the
transition,” a spokeswoman
said.
Meanwhile, businesses like
M.C. VanKampen Trucking Inc.,
a Michigan-based firm with 150
trucks, are hustling to install
the devices. About 60% of the
fleet is compliant, David
Wozniak, Jr., the company’s
vice president, said on Tuesday. The company will cover
any fines its drivers incur on
the road, and expects that
shipping prices will go up as a
result of the mandate.
JOE RAEDLE/GETTY IMAGES
LUKE MACGREGOR/BLOOMBERG
BY JENNIFER SMITH
Some truckers are dreading the advent of a federal regulation that would serve to limit driving time.
Airbus Plans for ‘Orderly Succession’
BY ROBERT WALL
Airbus SE is hunting for a
new chief executive to guide it
through some of its worst turmoil in years.
The plane maker is facing
corruption investigations at a
time when many senior executives have left the company or
have laid plans to do so. In addition, while Airbus and rival
Boeing Co. have enough jet orders to keep them busy for
years, they both face big production challenges—including
tight supply lines—to deliver
on schedule.
Airbus on Friday confirmed
Chief Executive Tom Enders
wouldn’t seek an extension to
his contract beyond April 2019.
His No. 2, Chief Operating Officer Fabrice Brégier, who runs
the commercial-plane division
that generates most of Airbus’s
revenue and profit, plans to
leave in February.
Airbus, which trails only
Boeing in plane deliveries, said
it would consider internal and
external candidates to replace
Mr. Enders. A new CEO is due
to be named “in good time” for
confirmation in 2019, it said.
Airbus Chairman Denis
Ranque said the latest changes
would allow for “orderly succession planning.”
The company also is losing
to retirement its hugely successful chief salesman, John
Leahy, while its head of engineering, strategy boss and
chief technology officer have
already left.
The executive departures
come as Airbus confronts corruption allegations and other
regulatory scrutiny in countries including the U.S., France,
U.K. and Germany. Last month,
French authorities raided Airbus offices as part of an inves-
tigation into business the company conducted in Kazakhstan.
In Austria, Mr. Enders is
among several Airbus officials
being investigated about alleged wrongdoing in a combatjet deal more than a decade
ago. Mr. Enders has said the allegations in Austria were un-
CEO Tom Enders
intends to step down
when his contract
ends in 2019.
substantiated. Airbus has said
it is cooperating with the
probes.
The turmoil has cast a
shadow over a company that
has enjoyed years of record orders. Airbus, which is based in
Toulouse, France, has a backlog
of planes that represents more
than eight years of production.
Mr. Enders’s exit will draw a
line under an aerospace industry career that began in 1991
and saw him rise through the
ranks of the German and then
European aerospace industry.
He helped Airbus launch the
A320neo single-aisle program
that quickly became the company’s best seller. But Mr.
Enders’s path also has been
marked by multiple setbacks.
An attempt to merge with
British defense company BAE
Systems PLC in 2012 failed
when Mr. Enders couldn’t convince the German government
of the benefits of the deal.
“In the coming 16 months, I
will work with the board to ensure a smooth transition to the
next CEO and a new generation
of leaders,” Mr. Enders said
Friday.
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 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* *****
WEEKEND INVESTOR
goes down.
Therefore, “the longer your
time horizon, the more likely it
becomes that the stock market
will outperform the annuity,”
says Wade Pfau, professor of
retirement income at the
American College of Financial
Services in Bryn Mawr, Pa.
The many people who buy
these products as a kind of
stock-market play for cowards
have the wrong idea.
“Fixed indexed annuities are
not an alternative way of investing in stocks,” says John
Olsen, an annuity consultant in
St. Louis. “They have completely different risk and reward components. They are an
alternative to other fixed-dollar
investments, such as certificates of deposit or Treasury
bills.”
Often, however, these products are marketed as if they
were every investor’s dream
come true, offering most of the
upside of the stock market with
no downside. The marketing
message is: You’ll make plenty
of money if stocks go up, while
losing nothing if they go down.
To try proving that dubious
argument, some insurance
companies and their agents often use charts showing hypothetical, not actual, returns.
That’s a problem for at least
two reasons. First, a specific
annuity contract may not have
been in force for the full period
shown in the chart. And the
percentage of stock-market
gains the product earned may
have varied over time, even
though charts like these tend to
show a constant participation
rate. In the real world, such
rates may reset as often as
monthly.
As a result, these hypothetical charts imply that someone
owning the annuity would have
continuously earned the rate in
place at the end of the period.
Meanwhile, on planet Earth,
the product didn’t even exist
for the whole period, and the
rate at which it could have
tracked the stock market fluctuated over time. Mr. Olsen
says any chart based on such
assumptions is nonsense.
Furthermore, most of these
displays pit the performance of
the annuity against the S&P
500 without including the dividends from the stock index.
A fixed indexed annuity
might make sense if you crave
certainty, can’t bear the
thought of losing money, and
don’t mind tying it up for a decade or so to earn a middling,
but assured, return for the rest
of your life. It makes no sense
at all as a way to keep pace
with the stock market at no
risk. That’s a combination that
exists only in fairy tales.
ly
.
Harvard University’s endowment reached an agreement with Bain Capital LP, in
which Harvard will spin out its
direct real estate investment
team into a new business for
the Boston private-equity firm.
The world’s largest university endowment by assets is in
the middle of a radical overhaul under its new investment
chief, N.P. “Narv” Narvekar.
Harvard Management Co. has
been reducing the amount of
money the $37 billion endowment manages in-house in favor of investing with outside
investment firms.
As part of the agreement,
Dan Cummings, the head of
real estate at Harvard’s endowment, will become a managing director at Bain. His entire 22-person team at
Harvard will form a new unit,
Bain Capital Real Estate, that
will continue managing more
than $3 billion of Harvard’s direct real estate holdings.
The team expects to raise
money from other clients
down the road, according to
people familiar with the matter. Harvard anticipates contributing a meaningful amount
in commitments, said one of
the people.
The direct real estate group
at Harvard has added to the
endowment’s gains since Mr.
Cummings helped found the
team in 2010. It delivered a
20% gain in the year ended
June 30, 2016, according to an
endowment report, the most
recent returns Harvard disclosed for its real estate direct
investments.
The teams “share our commitment to a thematic, deeply
analytical investment approach,” said John Connaughton and Jonathan Lavine, comanaging partners of Bain
Capital.
The real estate team has
largely focused on investing
around long-term trends,
largely in the U.S. For example, it has invested in real estate in assisted living and senior living given the aging of
America, and warehouses that
support e-commerce.
The investment team runs
as an operating business, Mr.
Cummings said.
For Bain, the team fills a
gap. Although Bain manages
roughly $85 billion across private equity, public equity,
credit, and venture capital,
Bain hasn’t had a business
dedicated to real estate investments.
Mr. Cummings and his team
over the past year have been
exploring a spinoff, said a person familiar with the matter.
They considered becoming an
independent firm or joining
other platforms, but focused
on talks with Bain in the past
six months. The spinoff will be
effective as of February.
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BY JULIET CHUNG
AND DAWN LIM
Continued from page B1
same period in 2016, largely
because new regulations from
the Labor Department chilled
sales to retirement investors,
says Todd Giesing, annuity research director at Limra’s Secure Retirement Institute.
Limra projects sales will rebound to roughly $60 billion
next year as parts of the regulation are put on hold.
About 54% of fixed annuities
sold in the third quarter didn’t
come with a guaranteed stream
of income in retirement, says
Mr. Giesing. Their purchasers
are
seeking
“protected
growth,” or the potential for
appreciation while sidestepping
the stock market’s losses, he
says. Less than half the buyers
chose to lock in guaranteed
lifelong income, even though
two-thirds of sales were to
holders of individual retirement accounts or similar longterm saving plans.
If you buy a fixed indexed
annuity, you have to lock up
your money, often for seven to
10 years and sometimes longer.
If you need your capital before
then, your withdrawal will usually be subject to a surrender
charge, or penalty, that can run
up to or even exceed 10% of the
account’s value.
Another risk is opportunity
cost: the additional money you
could have made by not buying
the fixed indexed annuity in the
first place. While the annuity
puts a floor under your potential losses, it also puts a ceiling
on your potential gains. Over
time, the stock market goes up
more, and more often, than it
CHRISTOPHE VORLET
Bain to Absorb INVEST
Harvard Outfit
TECHNOLOGY
Facebook
Concedes
To Effects
On Health
BY ANDY PASZTOR
BY DEEPA SEETHARAMAN
n-
no
SpaceX
successfully
launched a refurbished cargo
capsule atop a previously used
rocket toward the international space station, seven
years after sending and recovering the first private spacecraft from Earth orbit.
With Friday morning’s
smooth countdown and liftoff
highlighting the company’s
progress since its historic Dec.
2010 feat, the company’s
founder, chairman and chief
designer, Elon Musk, notched
another milestone by reusing
a Falcon 9 booster rocket on a
U.S. government flight.
Space Exploration Technologies Corp. blasted more than
two tons of food, supplies and
scientific gear from Florida’s
Cape Canaveral Air Force Station, resuming operations at
launch complex 40, where the
pad was seriously damaged by
an explosion during a routine
ground test of a Falcon 9 more
than a year ago. In recent
weeks, some high-level Pentagon acquisition officials also
have embraced the idea of
launching military payloads on
rockets that previously flew in
space.
After three launch delays in
a week, the flight marked the
first pairing of a previously
flown capsule with what
SpaceX calls a “flight proven”
rocket. Streaking upward in a
nearly cloudless sky, the nine
main engines cut off as anticipated about two minutes and
20 seconds into the voyage,
and the second-stage engine
continued powering the capsule higher into space.
Roughly 9½ minutes into the
flight, flight controllers confirmed the capsule deployed
as intended and began coasting through space to join the
space station.
But looking ahead to 2018,
when SpaceX anticipates it
will start flights carrying U.S.
astronauts to the international
orbiting laboratory, Mr. Musk’s
management team and leaders
of the National Aeronautics
and Space Administration both
face formidable challenges.
From blastoff risks to radiation dangers to splashdown
hazards, industry and government experts have said
SpaceX’s plans pose difficult
technical and policy decisions
unlike any the nation’s space
CRAIG BAILEY/ASSOCIATED PRESS
SpaceX Launch
Reuses Booster
For NASA Flight
A SpaceX Falcon 9 rocket lifts off from refurbished Pad 40 at Cape Canaveral Air Force Station
program has faced in many
years.
Boeing Co., which has a
separate NASA contract to
start ferrying astronauts to
and from orbit, is confronting
its own steep hurdles. The
Chicago-based aerospace giant’s manned vehicle, called
the CST-100 Starliner, has
struggled to overcome problems with excess weight and
vibrations during launch.
Boeing intends to fly crews
on Atlas V rockets, which have
a longer and better safety record than the Falcon 9 fleet.
And since Boeing is the primary contractor on the space
station, NASA officials are
more familiar with its corporate engineering, accounting
and quality-control procedures
than those of SpaceX.
Boeing has said its “engineering models” show the
Starliner “is a safe, robust vehicle” that will meet all mandatory safety requirements
and provide the “lowest-risk
human spaceflight vehicle to
NASA.”
Hawthorne, Calif.,-based
SpaceX is relying on rocket-fueling procedures, internal tank
configurations and a design
philosophy that are markedly
different from legacy NASA
practices.
Since its Falcon 9 started
flying in earnest at the start of
the decade, SpaceX has deployed
several
different
booster variants, mostly to en-
hance performance, reliability
and reusability.
Historically, NASA officials
were accustomed to completing rocket and spacecraft designs before flight operations
kicked off.
But changes continue for
the SpaceX team.
Mr. Musk’s engineers are
redesigning, and need to demonstrate the safety of, an internal helium tank used to ensure smooth fuel flow during
ascent.
Various problems within
that portion of the fuel systems caused the 2016 explosion and led to a 2015 explosion that destroyed a Falcon 9
rocket and its cargo shipment
shortly after launch.
Net-Neutrality Rollback Puts Spotlight on FTC
WASHINGTON—Federal
regulators’ decision Thursday
to roll back Obama administration internet rules added
fuel to a debate about which
part of the government is better positioned to ensure consumer protection in a fastmoving technology sector.
The move, by the Federal
Communications Commission,
restores authority over internet providers that the Federal
Trade Commission had before
the 2015 net-neutrality rules,
which required that the providers treat all traffic on their
networks equally.
The dispute amounts to
more than a Washington turf
war. Detractors of the new
plan were quick to argue this
week that the FTC, a centuryold agency, has too little expertise or legal authority for
the 21st-century task of policing consumer-broadband services. Another concern is uncertainty about the FTC’s
future enforcement priorities.
BRENDAN SMIALOWSKI/AGENCE FRANCE-PRESSE
BY JOHN D. MCKINNON
AND BRENT KENDALL
FCC Chairman Ajit Pai argued old rules could hinder innovation.
There are three vacancies on
the five-member panel and the
Trump administration has yet
to put its stamp on those longopen seats.
Supporters of the shift
away from net-neutrality rules
dismiss those concerns, saying
the FTC regulates many modern and complicated technology businesses, including big
internet platforms. Acting
Chairman Maureen Ohlhausen,
a Republican, said Thursday
after the FCC vote that the
FTC has “vigorously protected
the privacy and security of
consumer data, and challenged
broadband providers who
failed to live up to their promises to consumers.”
The FCC’s chairman, Republican Ajit Pai, calls the difference between the new rules
and the 2015 regime a shift
from “before the fact” to “after the fact” regulation, arguing that the former is too prescriptive
and
assumes
companies will make anticom-
petitive moves, whereas the
latter is based on demonstrated harm to the consumer.
The upfront approach, he
contends, could hinder innovation in the fast-moving internet economy. The FTC
generally polices for anticompetitive conduct, as well as
unfair and deceptive trade
practices.
Detractors of his approach
say the bright-line rules of the
road are needed when it
comes to the rapidly changing
industry. Those net-neutrality
rules were reversed in the 3-2
vote by the FCC, which is stepping back from much of its
oversight of broadband access.
“After-the-fact
antitrust
and consumer protection enforcement by the FTC cannot
substitute for clear upfront
rules, especially given that
vertically integrated broadband [providers] have both
the incentive and ability to favor their own content or that
of paid ‘partners’ over the
content of rivals,” said Commissioner Terrell McSweeny, a
Democrat on the FTC.
The two current FTC commissioners have butted heads
on the issue for years, expressing highly divergent
views on their agency’s ability
to address conduct by internet
service providers that allegedly could harm consumers.
Now that Democrats have
lost the fight over their preferred policy approach, they
may have incentive to work
with a Republican majority at
the FTC to bring specific enforcement cases if internetservice providers were to engage in problematic behavior.
But it isn’t clear when the
commission might get that
majority, and it could be well
into 2018, or longer, before the
FTC seats are filled.
The agency for now can still
bring enforcement actions
with two commissioners if
they agree.
Ms. Ohlhausen, who pushed
to restore the FTC’s role, said
on Thursday that the agency
“is ready to resume its role as
the cop on the broadband
beat.”
Facebook Inc. acknowledged research showing that
some social-media use can be
harmful to mental health, a
rare admission that comes after many former executives
raised questions about the
platform’s imprint on the
world.
A Friday blog post by Facebook’s top researcher pointed
to external studies showing
the negative effects of passive
use of social-media sites to
read news but not interact
with anyone.
Facebook said the solution
to the mental malaise was
more Facebook. The blog post
pointed to Facebook’s internal
research indicating active use
of Facebook could improve a
person’s mood and well-being.
The company defined active
use as “sharing messages,
posts and comments with
close friends and reminiscing
about past interactions,” citing
two Facebook papers published in 2011 and 2016.
“In sum, our research and
other academic literature suggests that it’s about how you
use social media that matters
when it comes to your well-being,” according to the blog
post, written by David Ginsberg, Facebook’s director of
research, and Moira Burke, a
Facebook research scientist
who was previously at Carnegie Mellon University.
The post is a remarkable
turnaround for the company,
which until recently largely ignored mounting research
showing that Facebook use
was connected to negative
feelings.
It comes as part of a
broader reckoning within the
company about the way its
platform was used ahead of
the 2016 presidential election
and how it shapes societies
around the world.
In recent weeks, several
former Facebook employees
and executives have said the
social network was designed
to foster dependence on the
platform.
The active use that Facebook’s research endorses is
beneficial to the company,
which collects more ad revenue as its users spend more
time on its platform communicating with their connections.
In the past, Facebook has tried
to encourage users to share
more, rather than lurk on the
site.
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.
Saturday/Sunday, December 16 - 17, 2017 | B5
no
n-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
* * * *
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B6 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24651.74 s 143.08, or 0.58%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.70 21.65
P/E estimate *
20.09 18.64
Dividend yield
2.13
2.41
All-time high 24651.74, 12/15/17
Nasdaq Composite Index
Last
2675.81 s 23.80, or 0.90%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 25.12 24.98
P/E estimate *
19.82 19.06
Dividend yield
1.90
2.07
All-time high: 2675.81, 12/15/17
Current divisor 0.14523396877348
Last Year ago
6936.58 s 80.06, or 1.17%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.37
24.15
P/E estimate *
21.17
19.55
Dividend yield
1.06
1.23
All-time high: 6936.58, 12/15/17
24600
2700
6900
24000
2650
6750
23400
2600
6600
22800
2550
6450
22200
2500
6300
2450
6150
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
65-day moving average
21600
Bars measure the point change from session's open
21000
Sept.
Oct.
Nov.
6000
2400
Dec.
Sept.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
High
Latest
Close
Low
Net chg
% chg
52-Week
Low
High
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
24688.62 24584.44 24651.74 143.08
0.58
24651.74 19732.40
24.2
24.7
12.8
65.06
0.63
10402.51
8783.74
13.4
14.9
5.5
2.81
0.37
774.47
651.14
14.5
14.2
8.3
27705.07 27476.45 27656.76 257.73
710.83
700.04
9.82
708.18
0.94
27656.76 23276.73
708.56
600.24
17.9
17.5
18.8
17.7
10.2
10.9
Transportation Avg 10435.64 10302.37 10393.01
756.22
Utility Average
Total Stock Market
Barron's 400
751.04
Nasdaq Stock Market
Nasdaq Composite
6945.82
Nasdaq 100
6470.92
753.38
6871.45
6405.03
1.41
80.06
76.41
6936.58
6466.32
1.17
1.20
6936.58
6466.32
5383.12
4863.62
27.6
31.6
28.9
33.0
14.6
15.9
Standard & Poor's
500 Index
2679.63
2659.14
2675.81
23.80
0.90
2675.81
2238.83
18.5
19.5
10.4
MidCap 400
SmallCap 600
1896.59
937.51
1867.14
918.42
1886.67
932.63
19.53
16.08
1.05
1899.18
944.10
1660.58
815.62
13.1
10.8
13.6
11.3
10.7
12.3
Other Indexes
Russell 2000
1538.06
1507.68
1530.42
23.47
551.33
557.14
5.81
NYSE Arca Biotech
4174.15
4108.89
4173.14
64.25
NYSE Arca Pharma
547.58
543.73
547.58
3.86
KBW Bank
107.05
105.10
1.28
PHLX§ Gold/Silver
106.25
80.53
79.85
0.54
PHLX§ Oil Service
80.23
134.61
133.01
133.21
0.47
1254.61
10.20
1231.99
9.22
1250.89
9.42
PHLX§ Semiconductor
Cboe Volatility
1.56
70.61
559.11
Value Line
Most-active issues in late trading
Company
Volume
(000)
Symbol
Last
Net chg
After Hours
% chg
High
Close
SPY
21,564.9 267.10
0.59
0.22 267.68 264.26
Bank of America
BAC
19,932.1
29.06
0.02
0.07
29.21
29.01
General Electric
GE
16,078.3
17.83
0.01
0.06
17.83
17.73
Cisco Systems
CSCO 10,725.1
38.24
0.05
0.13
38.32
38.10
Comcast Cl A
CMCSA 10,051.5
39.71
...
unch.
39.72
39.29
VanEck Vectors Semiconduc SMH
9,194.4
99.55
0.30
0.30
99.55
98.95
AT&T
8,461.4
38.25
0.01
0.03
38.28
38.15
8,361.5 114.03
...
T
iShares S&P 500 Value ETF IVE
unch. 114.09 114.03
Percentage gainers…
1544.14
1345.24
12.2
10.3
Akamai Technologies
AKAM
2,909.1
65.95
8.19
14.18
66.50
55.62
Endologix
ELGX
36.9
5.75
0.50
9.52
5.75
5.25
Nova Lifestyle
NVFY
54.2
2.09
0.14
7.18
2.09
1.95
Snyders-Lance
LNCE
166.4
49.35
2.56
5.47
49.70
46.51
46.5
8.29
0.40
5.07
8.30
7.80
14.2
14.9
6.8
503.24
9.0
10.1
5.3
1.56
4304.77
3075.02
30.5
35.7
7.9
0.71
560.52
469.13
13.7
13.7
1.3
1.22
107.33
88.02
15.8
15.8
14.3
Aratana Therapeutics PETX
31.1
5.20
-0.53
-9.25
5.78
5.05
0.68
96.72
73.03
9.3
1.7
7.8
China Finance Online ADR JRJC
13.0
2.17
-0.17
-7.26
2.33
2.17
0.35
192.66
117.79
-28.8
-27.5 -12.0
Lattice Semiconductor LSCC
60.5
5.51
-0.35
-5.97
5.95
5.51
900.85 38.9
9.14 -22.8
38.0 23.4
-32.9 -22.7
Just Energy Group
23.0
4.14
-0.14
-3.17
4.26
4.14
11.0
13.16
-0.42
-3.09
13.58
13.07
1.50
12699.68 11056.89
12.8
1341.69
16.04
Marinus Pharmaceuticals MRNS
...And losers
JE
AllnzGI NFJ Div Interest NFJ
Percentage Gainers...
Net chg
6.57
1.22
–0.77
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
640.12
Sao Paulo Bovespa 72607.70
S&P/TSX Comp
16041.98
S&P/BMV IPC
48081.55
Santiago IPSA
3963.71
5.39
178.76
25.52
–140.83
85.85
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
388.19
388.41
3992.27
5349.30
13103.56
1461.34
22094.04
548.67
1148.27
10150.40
572.36
9394.71
7490.57
–0.72
–0.22
7.05
–7.84
35.48
…
–97.70
1.20
–5.05
–26.10
–4.00
11.69
42.45
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5997.00
Shanghai Composite 3266.14
Hang Seng
28848.11
S&P BSE Sensex
33462.97
Nikkei Stock Avg
22553.22
Straits Times
3416.94
Kospi
2482.07
Weighted
10491.44
Latest
% chg
–0.30
–0.29
YTD
% chg
0.22
0.31
20.1
20.2
21.4
0.85
0.25
0.16
18.5
20.6
4.9
5.3
23.0
2.21
–0.19
–0.06
0.18
–0.15
0.27
Closed
–0.44
0.22
–0.44
–0.26
–0.69
0.12
0.57
7.4
10.9
10.7
10.0
14.1
–0.6
14.9
13.6
–0.4
8.5
7.1
14.3
4.9
n-
3040.96
392.04
259.84
–0.24
–14.30
–26.30 –0.80
–318.27 –1.09
216.27
–141.23 –0.62
–18.84 –0.55
12.59
–0.44
–46.57
no
The Global Dow
DJ Global Index
DJ Global ex U.S.
0.65
0.51
5.8
5.2
31.1
25.7
18.0
18.6
22.5
13.4
Company
Symbol
LongFin Cl A
ShiftPixy
Seven Stars Cloud Group
Sorrento Therapeutics
Wins Finance Holdings
LFIN
Educational Dev
Oi ADR
Sonic Foundry
Pangaea Logistics Solns
Payment Data Systems
EDUC
TiGenix ADR
Crocs
Surgery Partners
Forterra
Riot Blockchain
TIG
22.01 16.62 308.41
3.90 1.69 76.53
SSC
4.20 0.90 27.27
SRNE
2.95 0.50 20.41
WINS 147.01 24.51 20.01
PIXY
OIBR.C
SOFO
PANL
PYDS
CROX
SGRY
FRTA
RIOT
52-Week
Low
% chg
High
26.80 4.69
11.64 2.00
5.33 1.10
6.08 1.50
465.00 19.80
Company
Symbol
...
...
213.4
-42.7
-9.6
One Horizon Group
Reven Housing REIT
Newater Technology
Marinus Pharmaceuticals
Allena Pharmaceuticals
OHGI
Symbol
SPDR S&P 500
Bank of America
Finl Select Sector SPDR
Sirius XM Holdings
Oracle
SPY
General Electric
Teva Pharmaceutical ADR
iShares MSCI Emg Markets
Micron Technology
Microsoft
GE
BAC
XLF
SIRI
ORCL
TEVA
EEM
MU
MSFT
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
6.25
3.82
2.21
2.14
1.17
75.4
39.3
-34.9
70.5
63.6
Verastem
LM Funding America
bebe stores
Pendrell
Aytu BioScience
VSTM
24.92
12.55
11.15
10.83
28.50
3.25
1.61
1.40
1.35
3.52
15.00
14.72
14.36
14.24
14.09
25.72 12.58
13.04 5.93
24.05 7.10
22.76 3.02
33.27 3.02
77.9
77.0
-22.0
-44.5
658.0
Tecogen
FAT Brands
Syndax Pharmaceuticals
Arcimoto
Yield10 Bioscience
TGEN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
120,813
109,738
109,110
94,978
75,161
82.9
64.2
94.7
501.2
389.0
72,263
65,907
65,190
53,673
49,583
-1.8
161.2
26.9
42.8
138.5
52-Week
High
Low
4.00%
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
266.51 0.84
29.04 1.08
27.81 0.90
5.37 -5.12
48.30 -3.77
17.82
18.61
46.17
42.40
86.85
267.56 222.73
29.50 21.77
28.33 22.00
5.89
4.40
53.14 38.30
1.02
7.57
0.22
0.38
2.55
32.38
38.31
47.93
49.89
87.09
17.46
10.85
33.94
20.19
61.95
3.00
t
5-year Treasury
note yield
1.00
0.00
J F MAM J J A S O N D
2017
Epic Funding
Fort Myers, FL
Friday
t
t
2.00
Third Federal Savings and Loan
2.84%
Cleveland, OH
866-627-1785
2.25
5
1.50
One year ago
0.75
0
2.88%
800-530-2680
–5
0.00
–10
Capitol Federal Svgs Bk
Shawnee, KS
3.00%
800-222-7312
Haven Savings Bank
Hoboken, NJ
3.00%
201-659-3600
1
3 6
month(s)
1 2 3 5 710
years
maturity
30
Federal-funds rate target
1.25-1.50 1.00-1.25
Prime rate*
4.25
4.50
Libor, 3-month
1.55
1.61
Money market, annual yield
0.34
0.34
Five-year CD, annual yield
1.49
1.49
30-year mortgage, fixed†
3.88
3.88
15-year mortgage, fixed†
3.29
3.30
Jumbo mortgages, $424,100-plus† 4.26
4.30
Five-year adj mortgage (ARM)† 3.70
3.71
New-car loan, 48-month
3.20
3.32
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
0.99 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
1.61
0.36
1.49
4.33
3.50
4.87
4.03
3.74
1.25
1.25
1.37
-0.09
-0.03
0.07
0.22
0.05
0.45
0.17
Euro
s
Yen
WSJ Dollar index
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Close
2017
2
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1466.878
2.210
2.218
2.242
1.818
4.271 1.579
10-yr Treasury, Ryan ALM 1736.528
DJ Corporate
382.897
Aggregate, Barclays Capital 1948.290
High Yield 100, Merrill Lynch
n.a.
Fixed-Rate MBS, Barclays 1990.000
Muni Master, Merrill
n.a.
2.353
3.105
2.680
n.a.
2.860
n.a.
2.383
3.140
2.700
5.621
2.900
2.107
2.609
3.390
2.790
n.a.
3.120
n.a.
2.058
2.879
2.380
n.a.
2.660
n.a.
4.550
7.505
4.687
n.a.
3.549
n.a.
807.284
5.528
5.565
6.200
5.279
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.171
3.959
2.290
n.a.
1.947
n.a.
10.439 8.002
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
FUV
YTEN
-39.29
-22.84
-16.71
-15.43
-15.19
E TRACS UBS BB CMCI
Global Medical REIT
Videocon d2h ADR
SPDR Portfolio LT Trea
Haymaker Acquisition
-0.34
-0.99
-0.97
-0.53
-0.38
0.57
3.04
7.32
0.83
8.66
-11.0
-45.5
...
759.8
...
5.71 1.08
6.65 1.11
7.00 3.02
760.99 588.50
6.82 0.17
175.4
-59.6
-33.7
-3.4
96.0
3.38
6.75
16.25
9.87
15.40
-11.89
-11.43
-10.78
-10.62
-10.59
4.35
13.99
15.70
6.35
9.30
2.20
7.67
6.31
2.54
1.82
-35.9
...
-1.0
...
...
Ranked by change from 65-day average*
Symbol
UCI
GMRE
VDTH
SPTL
HYAC
in US$
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
15,351
2,245
3,970
191
132
9439
8613
5769
2006
1897
22.01 308.41
19.44 0.00
13.25 11.81
42.11 1.20
45.15 0.18
26.80 4.69
20.17 18.41
14.30 1.82
43.15 32.59
45.97 42.87
385
2,307
501
1,668
310
1815
1608
1530
1513
1290
14.55
8.25
9.26
36.94
9.50
0.14
-1.20
4.16
0.33
-0.11
15.19 11.97
10.25 7.85
11.74 7.85
37.32 33.72
9.85 9.50
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Fri
per US$ (%)
Country/currency
in US$
Americas
Europe
Argentina peso
.0571 17.5105 10.3
Brazil real
.3035 3.2951 1.2
Canada dollar
.7772 1.2867 –4.3
Chile peso
.001570 636.80 –4.9
Ecuador US dollar
1
1 unch
Mexico peso
.0523 19.1233 –7.8
Uruguay peso
.03463 28.8800 –1.6
Venezuela b. fuerte .100150 9.9851 –0.1
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
Australian dollar
.7643 1.3084
China yuan
.1515 6.5989
Hong Kong dollar
.1280 7.8109
India rupee
.01561 64.075
Indonesia rupiah .0000737 13575
Japan yen
.008880 112.61
Kazakhstan tenge .002976 336.01
Macau pataca
.1243 8.0477
Malaysia ringgit
.2451 4.0795
New Zealand dollar
.6992 1.4302
Pakistan rupee
.00910 109.858
Philippines peso
.0198 50.438
Singapore dollar
.7417 1.3483
South Korea won .0009180 1089.38
Sri Lanka rupee
.0065295 153.15
Taiwan dollar
.03336 29.976
Thailand baht
.03075 32.520
Vietnam dong
.00004403 22713
Commodities
–5.8
–5.0
0.7
–5.7
0.4
–3.8
0.7
1.7
–9.1
–1.0
5.3
1.7
–6.8
–9.8
3.2
–7.6
–9.2
–0.3
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
US$vs,
YTDchg
Fri
per US$ (%)
.04575 21.860 –14.9
.1578 6.3361 –10.4
1.1748 .8512 –10.5
.003740 267.40 –9.1
.009489 105.38 –6.7
.1193 8.3829 –3.0
.2794 3.5795 –14.5
.01700 58.837 –4.0
.1176 8.5042 –6.6
1.0093 .9908 –2.8
.2590 3.8612 9.6
.0363 27.5325 1.7
1.3322 .7506 –7.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6530 .3769 –0.1
.0560 17.8700 –1.4
.2846 3.5136 –8.7
3.3110 .3020 –1.2
2.5947 .3854 0.1
.2742 3.647 0.2
.2667 3.7501 –0.02
.0763 13.0996 –4.3
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.10
0.22 0.25 –6.28
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Friday
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
SNDX
Asia-Pacific
Corporate Borrowing Rates and Yields
Bond total return index
2.52
7.67
8.03
4.46
3.20
FAT
LFIN
LongFin Cl A
SPDR Bloomberg 1-10Y TIPS TIPX
SIEB
Siebert Financial
PZD
PwrShrs Cleantech
ProSharesHedgeReplication HDG
Country/currency
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
-1.21
-0.90
-1.76
-1.44
-1.88
52-Week
Low
% chg
U.S.-dollar foreign-exchange rates in late New York trading
15%
10
1.87
3.04
8.77
7.89
10.50
High
Currencies
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
Latest Session
Close Net chg % chg
* 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
Forex Race
3.75%
AmericanAirlinesFederalCreditUnion
2.63%
Ft Worth, TX
800-533-0035
NYSE Arca
* 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.
3.14 -0.51 -13.97
2.07 -0.32 -13.39
BEBE
3.75 -0.57 -13.19
PCO
634.50 -88.30 -12.22
AYTU
2.45 -0.34 -12.19
Company
s
5-year adjustablerate mortgage
t (ARM)
Nasdaq
Total volume*3,228,269,435 265,789,238
Adv. volume*2,294,164,302 172,033,943
Decl. volume* 884,878,398 92,523,814
Issues traded
3,071
1,315
Advances
2,043
884
Declines
885
409
Unchanged
143
22
New highs
133
146
New lows
51
33
Closing tick
214
17
Closing Arms†
0.89
1.08
Block trades*
9,971
1,590
LMFA
Volume Movers
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.70%
ALNA
17.46
9.71
5.35
8.40
4.10
notes and bonds
Bankrate.com avg†:
MRNS
19.22
17.00
16.46
15.38
15.20
s
U.S. consumer rates
NEWA
2.70
0.85
0.39
0.60
0.38
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
RVEN
16.75
5.85
2.76
4.50
2.88
Most Active Stocks
Company
Total volume*2,415,752,875 59,001,746
Adv. volume*1,842,778,723 15,586,826
Decl. volume* 538,176,716 43,004,121
Issues traded
3,093
332
Advances
2,057
160
Declines
927
161
Unchanged
109
11
New highs
123
1
New lows
32
5
Closing tick
478
15
Closing Arms†
0.74
1.34
Block trades*
8,940
271
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
SPDR S&P 500
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Interest rate
NYSE NYSE Amer.
559.05
18.46
-1.07 -10.20
International Stock Indexes
World
Volume, Advancers, Decliners
1.05
0.56
Philadelphia Stock Exchange
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6 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
12723.59 12650.08 12699.68
NYSE Composite
1.75
Late Trading
ly
.
Major U.S. Stock-Market Indexes
596.81
1.21
184.52
57.30
2.612
1254.30
0.31
0.26
-0.072
0.50
0.20
616.58
532.01
0.17 195.14
58.95
0.46
3.93
-2.68
0.04 1346.00
166.50
42.53
2.56
1128.80
% Chg
5.24
YTD
% chg
5.21
-3.61 -4.15
6.66
10.40
-23.51 -29.86
9.07
10.48
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.
Saturday/Sunday, December 16 - 17, 2017 | B7
* * * *
BIGGEST 1,000 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.
h-Does not meet continued listing
v-Trading halted on primary market.
Footnotes:
s-New 52-week high.
standards
vj-In bankruptcy or receivership or
t-New 52-week low.
lf-Late filing
being reorganized under the
dd-Indicates loss in the most recent q-Temporary exemption from Nasdaq Bankruptcy Code, or securities
four quarters.
requirements.
assumed by such companies.
FD-First day of trading.
t-NYSE bankruptcy
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.
ABC
Yld
Net
Sym % PE Last Chg
47.65 13.60 7.05 CaesarsEnt CZR ... dd 12.55
60.84 57.04 32.47 CalAtlantic CAA 0.3 16 54.70
10.69 96.39 78.38 CamdenProperty CPT 3.2 56 93.06
-17.99 64.23 44.99 CampbellSoup CPB 2.8 17 49.59
CM 4.4 11 92.72
13.63 96.64 77.20 CIBC
19.21 84.48 66.77 CanNtlRlwy CNI 1.6 23 80.35
3.70 36.79 27.52 CanNaturalRes CNQ 2.6 20 33.06
s 25.15 181.28 141.32 CanPacRlwy CP 1.0 19 178.68
CAJ 3.7 20 38.45
36.64 39.15 27.76 Canon
s 10.40 97.31 76.05 CapitalOne COF 1.7 14 96.31
-12.20 84.88 54.66 CardinalHealth CAH 2.9 18 63.19
CSL 1.3 22 112.38
1.90 116.53 92.09 Carlisle
CG 10.3 12 21.75
42.62 24.85 14.97 Carlyle
KMX ... 19 67.73
5.19 77.64 54.29 CarMax
CCL 2.7 18 65.95
26.68 69.89 50.77 Carnival
CUK 2.7 18 65.52
27.99 70.56 50.34 Carnival
58.17 149.05 90.34 Caterpillar CAT 2.1102 146.69
CAVM ... dd 83.77
34.16 88.96 56.96 Cavium
71.02 128.32 72.54 CboeGlobalMkts CBOE 0.9 69 126.37
Celanese
A
CE 1.7 19 106.54
35.31 109.11 78.38
CELG ... 26 109.41
-5.48 147.17 94.55 Celgene
CX ... 10 7.39
-4.29 10.37 7.09 Cemex
-44.22 15.98 6.76 CenovusEnergy CVE 1.8 4 8.44
67.86 103.15 54.40 Centene
CNC ... 19 94.86
16.88 30.45 24.13 CenterPointEner CNP 3.9 21 28.80
-21.87 7.38 3.49 CentraisElBras EBR ... 3 5.36
-28.55 27.61 13.16 CenturyLink CTL 12.7 29 16.99
CERN ... 35 69.42
46.55 73.86 47.09 Cerner
11.94 408.83 282.54 CharterComms CHTR ...109 322.31
26.95 119.20 84.00 CheckPoint CHKP ... 23 107.22
117.47 58.08 20.76 Chemours CC 1.4 33 48.04
19.72 51.51 40.36 CheniereEnergy LNG ... dd 49.60
-1.73 33.47 26.41 CheniereEnerPtrs CQP 6.2 dd 28.32
21.19 27.86 21.52 CheniereEnHldgs CQH 6.6339 27.11
1.72 122.30 102.55 Chevron
CVX 3.6 35 119.73
42.64 32.29 21.38 ChinaEastrnAir CEA ... 11 31.88
19.50 17.85 12.74 ChinaLifeIns LFC 1.1 18 15.38
140.45 142.80 45.61 ChinaLodging HTHT ... 54 124.65
-6.20 58.83 48.70 ChinaMobile CHL 4.2 12 49.18
-0.96 84.88 69.60 ChinaPetrol SNP 4.3 10 70.34
87.20 50.64 25.60 ChinaSoAirlines ZNH 1.5 11 48.13
6.00 53.77 45.58 ChinaTelecom CHA 2.7 15 48.90
17.49 16.55 11.28 ChinaUnicom CHU ...134 13.57
CMG ... 60 312.12
-17.28 499.00 263.00 Chipotle
CB 1.9 18 148.72
12.56 156.00 127.15 Chubb
11.35 36.37 31.28 ChunghwaTel CHT 4.7 23 35.13
11.02 54.18 43.21 Church&Dwight CHD 1.5 28 49.06
53.04 212.46 133.11 Cigna
CI 0.0 22 204.14
-17.34 144.30 89.49 CimarexEnergy XEC 0.3 28 112.33
-1.94 81.98 68.24 CincinnatiFin CINF 2.7 25 74.28
CTAS 1.0 36 158.00
36.73 159.83 112.96 Cintas
26.37 38.37 29.80 CiscoSystems CSCO 3.0 20 38.19
25.81 77.92 55.23 Citigroup
C 1.7 14 74.77
17.04 42.52 31.51 CitizensFin CFG 1.7 17 41.70
23.08 88.96 70.24 CitrixSystems CTXS ... 30 87.53
s 23.00 148.23 117.94 Clorox
CLX 2.3 27 147.63
KO 3.2 44 46.19
11.41 47.48 40.22 Coca-Cola
24.81 44.75 31.09 Coca-Cola Euro CCE 2.4 25 39.19
9.03 91.84 59.44 Coca-Cola Femsa KOF 2.5 19 69.28
CGNX 0.6 45 60.97
91.67 72.99 31.18 Cognex
28.65 76.51 51.52 CognizantTech CTSH 0.8 22 72.08
COHR ... 35 288.03
109.65 320.73 132.12 Coherent
13.16 77.27 63.43 ColgatePalm CL 2.2 29 74.05
t-19.64 16.09 11.97 ColonyNorthStar CLNS 9.0 dd 11.99
15.02 42.18 34.12 Comcast A CMCSA 1.6 19 39.71
CMA 1.4 19 85.29
25.22 86.78 64.04 Comerica
1.28 57.91 49.43 CommerceBcshrs CBSH 1.6 21 55.76
1.40 42.75 30.95 CommScope COMM ... 38 37.72
SBS ... 9 10.03
15.55 11.33 7.82 SABESP
-4.53 41.68 32.16 ConagraBrands CAG 2.3 27 37.76
2.87 147.77 106.73 ConchoRscs CXO ... 36 136.40
4.05 54.22 42.27 ConocoPhillips COP 2.0 dd 52.17
19.76 89.70 71.79 ConEd
ED 3.1 22 88.24
45.23 223.53 147.95 ConstBrands B STZ.B 0.8 28 222.50
46.40 227.20 144.00 ConstBrands A STZ 0.9 32 224.44
-8.42 53.57 29.08 ContinentalRscs CLR ... dd 47.20
COO 0.0 30 229.30
31.08 256.39 172.83 Cooper
CPRT ... 34 44.11
59.21 44.42 27.56 Copart
32.06 32.81 24.12 Corning
GLW 1.9 14 32.05
CSGP ... 89 294.86
56.43 314.73 184.86 CoStar
s 20.37 195.35 150.00 Costco
COST 1.0 31 192.73
COTY 2.5 dd 19.78
8.03 20.88 14.24 Coty
21.63 215.69 150.71 Credicorp
BAP 2.5 13 192.00
s 49.88 329.03 182.50 CreditAcceptance CACC ... 17 326.00
23.06 17.69 13.28 CreditSuisse CS 4.1 dd 17.61
27.52 114.97 83.96 CrownCastle CCI 3.8 92 110.65
10.06 61.61 51.76 CrownHoldings CCK ... 17 57.86
CTRP ... 77 44.01
10.03 60.65 39.71 Ctrip.com
7.28 103.37 81.09 Cullen/Frost CFR 2.4 18 94.65
CMI 2.5 17 169.63
24.12 181.79 134.06 Cummins
-0.05
0.21
1.15
1.03
-1.14
-0.58
-0.59
-1.55
0.01
2.25
2.84
1.98
-0.40
0.64
0.77
0.48
0.41
-0.24
0.31
0.81
1.17
-0.09
-0.39
-4.16
0.18
0.09
0.52
0.85
-6.37
0.92
0.55
-0.18
-0.30
-0.39
0.20
-0.15
-0.20
2.54
0.10
-0.67
-0.87
0.23
-0.14
-1.90
2.60
0.08
0.60
0.51
-0.72
1.63
0.82
0.29
0.85
0.83
0.48
1.37
0.16
0.09
-1.20
0.08
0.27
2.43
0.81
-0.09
0.59
1.54
1.42
-0.29
0.10
0.75
-0.40
-0.14
0.65
-1.02
1.69
-0.16
4.44
0.31
0.24
7.06
6.20
0.24
-4.74
1.46
0.09
0.04
0.45
0.44
1.34
1.08
DEF
-16.16 66.50 46.07 DISH Network DISH ... 23 48.57
14.94 116.74 96.56 DTE Energy DTE 3.1 21 113.23
DXC 0.8161 95.25
37.58 99.44 64.06 DXC Tech
DHR 0.6 28 94.00
20.76 94.82 77.66 Danaher
DRI 2.9 23 88.41
21.58 95.22 71.02 Darden
DVA ... 27 70.52
9.84 71.47 52.51 DaVita
DE 1.6 23 150.87
46.42 153.34 100.90 Deere
DVMT ... dd 80.99
47.33 83.98 54.13 DellTechs
s 14.05 56.49 43.81 DeltaAir
DAL 2.2 11 56.10
15.16 68.98 52.53 DentsplySirona XRAY 0.5 dd 66.48
s 20.24 19.54 15.59 DeutscheBank DB 1.0 dd 19.43
-17.50 49.45 28.79 DevonEnergy DVN 0.6 13 37.68
DEO 2.9 26 141.54
36.17 142.63 102.72 Diageo
8.37 114.93 82.77 DiamondbkEner FANG ... 27 109.52
16.49 127.23 94.21 DigitalRealty DLR 3.3 92 114.46
3.47 75.51 57.50 DiscoverFinSvcs DFS 1.9 13 74.59
-26.25 29.18 14.99 DiscovComm C DISCK ... 10 19.75
-23.24 30.25 15.99 DiscovComm A DISCA ... 11 21.04
6.76 116.10 96.20 Disney
DIS 1.5 20 111.27
DLB 1.0 32 62.32
37.91 63.34 44.98 DolbyLab
22.76 96.60 65.97 DollarGeneral DG 1.1 20 90.93
37.72 109.00 65.63 DollarTree DLTR ... 25 106.29
s 10.86 85.26 70.87 DominionEner D 3.6 25 84.91
DPZ 1.0 35 185.04
16.20 221.58 156.26 Domino's
15.47 50.10 41.28 Donaldson DCI 1.5 27 48.59
s 12.47 41.41 35.27 DouglasEmmett DEI 2.4 77 41.12
DOV 1.9 23 97.48
30.09 99.15 74.53 Dover
4.20 73.85 64.01 DowDuPont DWDP ... 46 70.00
3.58 99.47 83.23 DrPepperSnap DPS 2.5 24 93.92
-17.82 46.95 29.83 DrReddy'sLab RDY 0.8 36 37.21
13.17 91.80 75.78 DukeEnergy DUK 4.1 29 87.84
4.74 30.14 23.93 DukeRealty DRE 2.9 38 27.82
E 5.9 32 32.67
1.33 34.62 29.44 ENI
EOG 0.79855 98.55
-2.52 107.95 81.99 EOG Rscs
EQT 0.2261 54.71
-16.35 68.16 49.63 EQT
-6.12 82.99 64.42 EQT Midstream EQM 5.4 14 71.99
43.95 50.90 32.25 E*TRADE
ETFC ... 23 49.88
285.93 63.60 13.05 EXACT Sci EXAS ... dd 51.56
19.40 63.92 48.07 EastWestBncp EWBC 1.3 17 60.69
19.97 94.96 74.78 EastmanChem EMN 2.5 13 90.23
ETN 2.0 12 77.29
15.20 82.34 66.60 Eaton
33.67 57.03 41.08 EatonVance EV 2.2 23 55.98
EBAY ... 6 38.37
29.24 39.27 29.01 eBay
ECL 1.2 30 135.19
15.33 137.96 116.92 Ecolab
s 42.65 13.03 8.44 Ecopetrol
EC ... 23 12.91
EIX 3.5 16 69.71
-3.17 83.38 67.28 EdisonInt
21.90 121.45 86.55 EdwardsLife EW ... 33 114.22
38.75 122.79 77.94 ElectronicArts EA ... 29 109.28
20.65 67.83 55.40 EmersonElec EMR 2.9 31 67.26
-43.25 26.17 12.25 EnbridgeEnPtrs EEP 9.7 24 14.46
ENB 5.5 26 38.72
-8.07 44.52 34.39 Enbridge
ECA 0.5 14 11.11
-5.37 13.85 8.01 Encana
23.63 11.10 7.75 EnelAmericas ENIA 1.0 28 10.15
28.81 27.74 18.36 EnelGenChile EOCC 7.7 13 25.04
-13.15 20.05 15.03 EnergyTransferEq ETE 7.0 21 16.77
-27.14 26.73 15.25 EnergyTransfer ETP 12.9 9 17.50
14.06 87.95 69.63 Entergy
ETR 4.2 dd 83.80
-3.51 30.25 23.59 EnterpriseProd EPD 6.5 21 26.09
EFX 1.3 27 119.51
1.08 147.02 89.59 Equifax
EQIX 1.7150 457.85
28.10 495.35 347.99 Equinix
26.81 91.90 69.62 EquityLife ELS 2.1 44 91.43
2.02 70.45 59.49 EquityResdntl EQR 3.1 58 65.66
ERIC 1.7 dd 6.51
11.66 7.47 5.52 Ericsson
7.44 270.04 218.41 EssexProp ESS 2.8 31 249.79
s 69.46 129.79 75.83 EsteeLauder EL 1.2 35 129.62
2.64 277.17 208.81 EverestRe RE 2.3 35 222.11
17.00 66.15 53.72 EversourceEner ES 2.9 21 64.62
EXEL ... 53 26.10
75.05 32.50 14.22 Exelixis
EXC 3.2 18 40.74
14.79 42.67 33.30 Exelon
EXPE 1.0 48 120.88
6.71 161.00 111.88 Expedia
21.68 66.01 51.57 ExpeditorsIntl EXPD 1.3 27 64.44
4.01 73.42 55.80 ExpressScripts ESRX ... 12 71.55
13.36 88.56 71.34 ExtraSpaceSt EXR 3.6 33 87.56
-8.01 91.67 76.05 ExxonMobil XOM 3.7 27 83.03
-9.44 149.50 114.63 F5Networks FFIV ... 20 131.06
63.01 95.25 56.35 FMC
FMC 0.7644 92.20
FB ... 35 180.18
56.61 184.25 114.77 Facebook
FDS 1.1 31 204.87
25.36 206.66 155.09 FactSet
FAST 2.4 28 53.28
13.41 55.35 39.79 Fastenal
-7.11 145.80 119.37 FederalRealty FRT 3.0 42 132.00
FDX 0.8 23 240.05
28.92 243.48 182.89 FedEx
RACE ... 35 104.38
79.53 121.14 57.40 Ferrari
93.09 18.33 8.73 FiatChrysler FCAU ... 8 17.61
50.88 17.21 7.98 FibriaCelulose FBR ... 35 14.50
61.21 40.75 24.18 FidNatlFin FNF 2.7 18 39.52
25.37 96.67 75.40 FidNatlInfo FIS 1.2 59 94.83
11.35 31.83 23.20 FifthThirdBncp FITB 2.1 11 30.03
147.32 79.79 27.58 58.com
WUBA ... 81 69.25
52.61 56.83 36.50 FirstAmerFin FAF 2.7 22 55.90
FDC ... 22 16.48
16.14 19.23 13.99 FirstData
t -4.96 105.52 86.73 FirstRepBank FRC 0.8 21 87.57
FSLR ... dd 68.96
114.90 71.80 25.56 FirstSolar
2.78 35.22 27.93 FirstEnergy FE 4.5 dd 31.83
FISV ... 31 131.96
24.16 133.11 104.51 Fiserv
34.33 192.51 121.52 FleetCorTech FLT ... 32 190.11
FLEX ... 18 17.98
25.12 19.11 14.22 Flex
30.92 48.06 33.75 FlirSystems FLIR 1.3 30 47.38
FLR 1.7 35 50.45
-3.94 58.37 37.04 Fluor
23.00 103.82 73.45 FomentoEconMex FMX 1.4 13 93.74
3.71 13.27 10.47 FordMotor F 4.8 11 12.58
17.32 26.30 19.93 ForestCIty A FCE.A 2.3 73 24.45
no
ABB 2.9 24 26.00 -0.10
23.40 26.48 20.93 ABB
1.57 39.50 30.15 AECOM
ACM ... 17 36.93 -0.56
-7.06 12.10 10.00 AES
AES 4.8 dd 10.80 0.17
s 28.25 89.67 66.50 Aflac
AFL 2.0 13 89.26 0.84
AGCO 0.8 29 74.39 2.22
28.57 75.58 57.06 AGCO
13.79 22.34 17.58 AGNC Invt AGNC 10.5 5 20.63 0.21
ANSS ... 47 148.03 3.52
60.05 155.14 91.89 Ansys
54.90 186.37 105.96 ASML
ASML 0.8 ... 173.80 1.89
T 5.1 18 38.24 0.50
-10.09 43.03 32.55 AT&T
44.49 56.69 37.90 AbbottLabs ABT 1.9 43 55.50 0.77
ABBV 2.9 24 97.45 1.15
55.62 98.87 59.27 AbbVie
ABMD ... 93 188.71 0.27
67.47 200.28 103.53 Abiomed
s 30.33 152.90 112.31 Accenture ACN 1.7 28 152.66 1.45
84.80 67.03 35.86 ActivisionBliz ATVI 0.4151 66.73 1.70
-28.17 249.72 153.28 AcuityBrands AYI 0.3 22 165.83 4.30
ADNT 1.4 8 78.91 1.07
34.66 86.42 51.74 Adient
72.42 186.27 101.91 AdobeSystems ADBE ... 52 177.51 2.51
-40.46 177.50 78.81 AdvanceAuto AAP 0.2 21 100.70 0.50
-9.26 15.65 9.42 AdvMicroDevices AMD ... dd 10.29 0.16
27.78 7.52 4.89 AdvSemiEngg ASX 3.5 14 6.44 -0.11
AEG 4.9 18 6.18 -0.03
11.75 6.27 4.73 Aegon
AER ... 9 52.67 0.55
26.58 54.50 41.34 AerCap
AET 1.1 33 179.70 1.21
44.91 192.37 116.04 Aetna
36.71 202.09 139.52 AffiliatedMgrs AMG 0.4 21 198.64 4.45
48.40 70.93 45.36 AgilentTechs A 0.9 32 67.61 1.10
2.31 51.86 36.49 AgnicoEagle AEM 1.0 37 42.97 0.11
AGU 3.2 42 110.13 -1.53
9.53 113.25 87.82 Agrium
11.54 164.65 133.63 AirProducts APD 2.4 29 160.42 -0.11
-13.38 71.64 44.65 AkamaiTech AKAM ... 35 57.76 1.00
ALK 1.7 11 70.83 1.44
-20.17 101.43 61.10 AlaskaAir
50.52 144.99 85.60 Albemarle ALB 1.0 30 129.57 1.99
AA ... 28 42.61 0.26
51.75 50.31 28.01 Alcoa
s 19.54 133.00 106.34 AlexandriaRlEst ARE 2.7150 132.84 0.95
-5.39 149.34 96.18 AlexionPharm ALXN ... 52 115.76 2.67
97.64 191.75 86.01 Alibaba
BABA ... 50 173.55 1.80
ALGN ... 71 233.55 -0.25
142.95 266.41 88.56 AlignTech
-5.33 63.40 46.42 Alkermes
ALKS ... dd 52.62 1.06
Y
... dd 577.24 14.60
-5.08 667.19 521.07 Alleghany
ALLE 0.8 23 82.28 0.76
28.56 89.81 63.71 Allegion
AGN 1.6 dd 171.68 0.74
-18.25 256.80 160.07 Allergan
4.95 266.25 209.00 AllianceData ADS 0.9 25 239.81 3.52
17.26 45.55 36.56 AlliantEnergy LNT 2.8 24 44.43 0.48
22.53 45.69 32.80 AllisonTransm ALSN 1.5 18 41.28 0.50
s 40.27 104.46 73.04 Allstate
ALL 1.4 15 103.97 1.32
50.89 29.34 18.11 AllyFinancial ALLY 1.7 13 28.70 0.21
235.44 147.63 35.98 AlnylamPharm ALNY ... dd 125.59 1.93
35.28 1080.00 789.62 Alphabet A GOOGL ... 36 1072.00 14.53
s 37.88 1067.62 770.41 Alphabet C GOOG ... 36 1064.19 15.04
81.77 73.25 38.24 Altaba
AABA ... dd 70.29 1.06
-41.82 35.29 17.80 AlticeUSA ATUS ... ... 19.03 -0.44
MO 3.7 9 71.67 -0.12
5.99 77.79 60.01 Altria
59.75 23.54 9.93 AlumofChina ACH ... 40 16.31 0.13
57.25 1213.41 747.70 Amazon.com AMZN ...299 1179.14 4.88
ABEV ... 35 6.23 0.01
26.88 7.03 4.73 Ambev
DOX 1.3 22 65.58 1.06
12.58 67.98 56.10 Amdocs
UHAL ... 23 377.68 2.00
2.19 400.99 338.30 Amerco
16.16 64.89 51.13 Ameren
AEE 3.0 24 60.94 0.11
37.15 19.50 12.00 AmericaMovil AMX 1.8 32 17.24 -0.09
38.94 19.11 11.85 AmericaMovil A AMOV 1.8 31 17.09 -0.24
9.36 54.48 39.21 AmerAirlines AAL 0.8 13 51.06 0.85
-14.45 51.70 41.06 AmCampus ACC 4.1104 42.58 -0.38
AEP 3.2 20 76.54 0.25
21.57 78.07 61.82 AEP
32.99 99.75 73.50 AmerExpress AXP 1.4 19 98.52 1.37
18.41 106.77 85.57 AmericanFin AFG 1.3 13 104.34 1.08
6.05 23.98 19.76 AmerHomes4Rent AMH 0.9 dd 22.25 0.24
AIG 2.2 dd 59.39 1.28
-9.06 67.47 57.85 AIG
35.09 155.28 102.51 AmerTowerREIT AMT 2.0 54 142.76 -0.88
25.51 92.37 69.96 AmerWaterWorks AWK 1.8 34 90.82 0.47
51.37 170.35 109.19 Ameriprise AMP 2.0 16 167.93 2.48
19.16 97.85 71.90 AmerisourceBrgn ABC 1.6 50 93.17 3.86
AME 0.5 30 71.22 0.26
46.54 73.06 48.21 Ametek
AMGN 3.0 16 177.04 2.12
21.09 191.10 145.12 Amgen
32.63 91.26 66.00 Amphenol APH 0.9 28 89.13 0.09
-31.85 72.32 39.96 AnadarkoPetrol APC 0.4 dd 47.52 -0.37
19.37 93.99 71.00 AnalogDevices ADI 2.1 42 86.69 1.25
ANDV 2.1 23 111.55 2.59
27.56 112.21 75.11 Andeavor
-6.28 60.14 42.18 AndeavorLog ANDX 8.3 20 47.62 -0.04
BUD 3.4 56 110.62 0.12
4.91 126.50 102.50 AB InBev
22.77 12.73 9.85 AnnalyCap NLY 9.8 5 12.24 0.08
ANTM 1.2 20 226.21 -0.91
57.34 236.39 140.50 Anthem
24.08 152.78 109.82 Aon
AON 1.0 ... 138.39 1.81
APA 2.5 23 39.47 0.05
-37.81 67.42 38.14 Apache
-3.54 46.85 41.87 ApartmtInv AIV 3.3139 43.84 -0.01
66.89 33.37 18.90 ApolloGlbMgmt APO 4.8 11 32.31 0.22
AAPL 1.4 19 173.97 1.75
50.21 176.24 114.76 Apple
62.81 60.89 31.66 ApplMaterials AMAT 0.8 17 52.54 1.23
APTV 1.0 16 84.40 1.35
49.62 89.66 55.80 Aptiv
s 26.96 38.42 29.41 AquaAmerica WTR 2.1 29 38.14 0.59
ARMK 1.0 28 42.46 0.46
18.87 44.12 32.87 Aramark
39.91 31.98 19.59 ArcelorMittal MT ... 5 30.64 -0.44
6.63 102.60 84.21 ArchCapital ACGL ... 30 92.01 2.21
-11.15 47.44 38.59 ArcherDaniels ADM 3.2 19 40.56 0.99
ARNC 0.9 dd 25.30 0.31
36.46 30.69 18.47 Arconic
138.74 245.65 87.33 AristaNetworks ANET ... 48 231.03 4.31
10.11 84.53 68.55 ArrowElec ARW ... 14 78.51 1.29
21.27 35.60 26.51 AstraZeneca AZN 2.7 25 33.13 -0.16
ATH ... 7 50.74 0.50
5.73 55.22 44.80 Athene
TEAM ... dd 47.03 1.60
95.31 53.45 23.80 Atlassian
20.53 93.56 72.54 AtmosEnergy ATO 2.2 24 89.37 -0.05
ADSK ... dd 108.40 2.15
46.47 131.10 73.60 Autodesk
142.21 67.69 24.71 Autohome ATHM ... 40 61.23 2.31
ALV 1.9 22 126.03 0.48
11.38 129.84 96.08 Autoliv
ADP 2.1 30 118.19 1.73
14.99 121.77 94.11 ADP
-11.74 809.52 491.13 AutoZone AZO ... 16 697.06 -4.17
2.55 199.52 169.50 Avalonbay AVB 3.1 28 181.66 -0.71
AGR 3.3 24 52.31 0.76
38.09 53.46 36.73 Avangrid
s 65.07 116.13 69.53 AveryDennison AVY 1.6 26 115.91 1.63
13.97 38.20 26.20 AxaltaCoating AXTA ...129 31.00 -0.50
BBT 2.7 18 49.53 0.56
5.34 51.11 41.17 BB&T
BCE 4.7 19 47.64 -0.70
10.18 49.06 42.44 BCE
20.40 44.62 33.37 BHPBilliton BHP 4.0 20 43.08 0.74
20.28 39.12 28.73 BHPBilliton BBL 4.5 17 37.84 0.70
9.44 92.08 73.44 BOK Fin
BOKF 2.0 19 90.88 2.24
BP 6.0 34 40.28 -0.35
7.76 41.55 33.10 BP
BRFS ... dd 10.86
-26.42 15.50 10.60 BRF
...
BT 3.4 19 18.53
-19.54 24.65 16.15 BT Group
...
53.43 62.85 37.84 BWX Tech BWXT 0.7 31 60.91 0.96
BIDU ... 30 233.48 1.66
42.01 274.97 162.02 Baidu
-18.77 40.82 29.62 BakerHughes BHGE 2.4 dd 30.26 -0.33
4.97 43.24 35.65 Ball
BLL 1.0 62 39.40 1.11
23.63 9.35 6.34 BancoBilbaoViz BBVA 5.1 12 8.37
...
26.26 95.80 66.36 BancodeChile BCH 3.0 17 86.65 1.84
77.75 136.10 61.12 BancoMacro BMA 0.7 14 114.38 -1.39
32.56 32.02 21.21 BcoSantChile BSAC 3.6 17 28.99 0.91
...
26.64 6.99 5.03 BancoSantander SAN 2.8 13 6.56
4.58 48.74 35.53 BanColombia CIB 3.3 10 38.36 -0.35
31.40 29.50 21.77 BankofAmerica BAC 1.7 17 29.04 0.31
8.73 79.02 66.75 BankofMontreal BMO 3.7 13 78.20 -0.41
14.39 55.40 43.85 BankNY Mellon BK 1.8 16 54.20 0.18
14.64 66.78 53.86 BkNovaScotia BNS 3.9 13 63.83 -0.82
-9.22 56.86 40.15 BankofOzarks OZRK 1.6 16 47.74 1.43
BCS 2.0 dd 10.69 -0.13
-2.82 11.96 9.29 Barclays
BCR 0.3 44 334.50 2.40
48.89 337.73 218.72 Bard CR
-12.02 20.78 13.28 BarrickGold ABX 0.9 8 14.06 -0.11
BAX 1.0 35 65.33 0.55
47.34 66.18 43.81 BaxterIntl
33.77 229.69 161.50 BectonDicknsn BDX 1.4 48 221.46 2.69
7.11 73.17 62.00 Berkley
WRB 0.8 17 71.24 0.99
21.37 299790 237983 BerkHathwy A BRK.A ... 26 296280 465.00
21.35 199.92 158.61 BerkHathwy B BRK.B ... 26 197.78 1.12
21.57 61.36 47.19 BerryGlobal BERY ... 23 59.24 0.83
s 53.08 65.53 41.67 BestBuy
BBY 2.1 17 65.32 1.57
38.22 273.87 177.68 Bio-RadLab A BIO ...319 251.94 2.22
BIIB ... 20 327.94 4.39
25.55 348.84 244.28 Biogen
12.29 100.51 80.10 BioMarinPharm BMRN ... dd 93.02 4.49
12.02 64.41 40.00 Bioverativ BIVV ... 13 53.21 -0.26
7.26 47.55 41.10 BlackKnight BKI ... 67 45.05 -0.20
57.33 11.78 6.65 BlackBerry BB ... 9 10.84 0.17
34.51 518.88 365.83 BlackRock BLK 2.0 24 511.87 5.12
16.20 35.09 26.65 Blackstone BX 5.6 14 31.41 -0.31
32.86 32.67 21.51 BlueBuffaloPet BUFF ... 37 31.94 0.88
196.52 222.03 60.95 bluebirdbio BLUE ... dd 182.95 -1.40
s 88.81 297.37 153.14 Boeing
BA 2.3 27 293.94 0.06
30.65 55.86 37.54 BorgWarner BWA 1.3 37 51.53 -0.01
2.89 140.13 116.77 BostonProps BXP 2.3 40 129.41 2.70
19.19 29.93 21.29 BostonSci BSX ... 42 25.78 0.16
BAK 2.8 56 26.62 -0.15
25.51 33.73 17.44 Braskem
s 33.75 93.76 65.00 BrightHorizons BFAM ... 46 93.65 2.30
-16.50 75.00 52.75 BrighthouseFin BHF ... ... 58.45 -0.28
6.79 66.10 46.01 Bristol-Myers BMY 2.6 25 62.41 0.28
16.91 73.41 55.53 BritishAmTob BTI 1.8 11 65.86 0.08
50.33 285.68 173.31 Broadcom AVGO 2.6 65 265.73 6.39
35.79 91.75 65.07 BroadridgeFinl BR 1.6 31 90.03 1.19
32.29 44.19 32.65 BrookfieldMgt BAM 1.3 97 43.67 -0.17
s 32.60 45.23 32.31 BrookfieldInfr BIP 3.9164 44.38 -0.62
14.09 52.42 41.10 Brown&Brown BRO 1.2 27 51.18 0.13
48.31 67.98 43.72 Brown-Forman B BF.B 1.2 35 66.62 0.78
s 43.61 66.56 45.17 Brown-Forman A BF.A 1.2 35 66.42 0.69
-26.00 73.01 43.90 BuckeyePtrs BPL 10.3 15 48.96 0.04
BG 2.7 22 67.69 1.57
-6.30 83.75 63.87 Bunge
31.62 114.99 79.07 BurlingtonStrs BURL ... 29 111.55 2.23
CA 3.0 19 33.71 0.52
6.11 36.54 30.45 CA
CBD ... 64 21.99 0.14
32.87 25.90 15.17 CBD Pao
37.35 44.04 29.69 CBRE Group CBG ... 19 43.25 0.67
CBS 1.2 82 58.90 0.77
-7.42 70.09 52.75 CBS B
CBS.A 1.2 83 59.58 0.88
-8.08 71.07 53.00 CBS A
18.55 71.63 58.52 CDK Global CDK 0.8 34 70.76 1.17
CDW 1.2 25 68.45 0.85
31.41 71.53 50.49 CDW
30.53 41.80 25.04 CF Industries CF 2.9 dd 41.09 0.07
s 12.37 54.64 45.81 CGI Group GIB ... 21 53.97 0.50
17.68 89.11 63.41 CH Robinson CHRW 2.1 26 86.21 0.88
CIT 1.3 dd 49.78 0.64
16.64 51.73 39.48 CIT Group
30.97 155.29 113.27 CME Group CME 1.7 34 151.07 0.65
18.33 50.85 40.93 CMS Energy CMS 2.7 26 49.25 0.18
27.86 55.62 39.96 CNA Fin
CNA 2.3 16 53.06 0.94
CEO 3.7 18 138.81 -2.69
11.98 143.39 108.05 CNOOC
CRH 1.3 19 33.87 -0.09
-1.48 38.06 32.82 CRH
47.31 58.35 35.59 CSX
CSX 1.5 27 52.93 -4.38
-7.39 84.72 66.45 CVS Health CVS 2.7 15 73.08 2.28
COG 0.8 dd 26.64 -0.62
14.04 29.57 20.55 CabotOil
73.20 45.64 25.18 CadenceDesign CDNS ... 47 43.68 0.49
YTD 52-Week
% Chg Hi Lo Stock
s 44.89
17.71
34.37
24.24
27.16
9.80
28.73
21.89
43.80
38.24
75.69
69.61
86.06
47.65
17.06
52.38
Yld
Net
Sym % PE Last Chg
FTNT ... 91
28.50 Fortinet
30.16 Fortis
FTS 3.7 19
FTV 0.4 27
52.99 Fortive
53.15 FortBrandsHome FBHS 1.2 23
54.69 Franco-Nevada FNV 1.2 96
38.93 FranklinRscs BEN 2.1 14
11.05 FreeportMcM FCX ... 24
39.46 FreseniusMed FMS 1.0 23
43.64
36.35
72.06
66.42
75.99
43.46
16.98
51.45
0.93
-0.56
0.66
-0.28
-0.99
0.39
0.79
-0.07
GGP 3.8 33 23.31
-6.69 26.43 18.83 GGP
23.13 67.32 50.87 Gallagher
AJG 2.4 26 63.98
17.60 39.32 29.67 Gaming&Leisure GLPI 7.0 20 36.01
GPS 2.7 15 33.56
49.55 34.41 21.02 Gap
s 54.55 32.90 19.91 GardnerDenver GDI ... dd 32.61
20.35 63.15 47.03 Garmin
GRMN 3.5 16 58.36
IT ... dd 122.51
21.21 130.02 90.37 Gartner
15.74 10.82 8.36 Gazit-Globe GZT 4.0 4 10.00
15.16 214.81 171.65 GeneralDynamics GD 1.7 20 198.84
-43.61 32.38 17.46 GeneralElec GE 2.7 22 17.82
-7.90 63.74 49.65 GeneralMills GIS 3.4 20 56.89
17.54 46.76 31.92 GeneralMotors GM 3.7 9 40.95
G 0.7 23 32.22
32.37 32.65 23.34 Genpact
GNTX 2.0 16 20.33
3.25 22.12 16.59 Gentex
-3.73 100.90 79.86 GenuineParts GPC 2.9 21 91.98
GGB 1.0 dd 3.55
13.06 4.39 2.60 Gerdau
s 24.56 32.61 23.55 Gildan
GIL 1.2 19 31.60
5.53 86.27 63.76 GileadSciences GILD 2.8 9 75.57
GSK 5.8 29 34.99
-9.14 44.53 34.52 GSK
45.27 104.90 68.98 GlobalPayments GPN 0.0 ... 100.83
GDDY ... dd 48.97
40.11 51.29 34.27 GoDaddy
-9.04 17.87 11.64 Goldcorp
GG 0.6 20 12.37
7.40 260.50 209.62 GoldmanSachs GS 1.2 13 257.17
GT 1.8 8 31.46
1.91 37.20 28.81 Goodyear
s 62.32 136.15 82.42 Graco
GGG 0.4 73 134.87
GWW 2.2 27 229.97
-0.98 262.71 155.00 Grainger
22.71 34.72 26.72 GreatPlainsEner GXP 3.3 32 33.56
GRFS 2.0 ... 21.73
35.22 24.20 15.46 Grifols
s 92.19 73.32 32.43 GrubHub
GRUB ...106 72.30
28.65 119.87 72.52 GpoAeroportuar PAC 2.8 23 106.16
6.55 9.38 7.42 GpoAvalAcc AVAL 4.7 13 8.46
142.68 66.50 23.23 GpoFinGalicia GGAL 0.0 19 65.33
1.53 10.82 6.89 GpFinSantMex BSMX 4.9 11 7.30
-7.95 27.37 17.24 GrupoTelevisa TV 0.5 49 19.23
19.51 91.03 71.18 HCA Healthcare HCA ... 13 88.46
-9.72 33.67 25.09 HCP
HCP 5.5 19 26.83
62.52 100.26 59.00 HDFC Bank HDB 0.5 ... 98.62
-9.69 44.73 28.97 HD Supply HDS ...130 38.39
HPQ 2.7 14 20.92
40.97 22.68 14.40 HP
HSBC 4.0 76 50.17
24.86 51.71 39.58 HSBC
-17.53 58.78 38.18 Halliburton HAL 1.6186 44.61
-0.51 25.73 18.90 Hanesbrands HBI 2.8 13 21.46
-13.51 63.40 44.52 HarleyDavidson HOG 2.9 16 50.46
40.62 144.94 99.13 Harris
HRS 1.6 32 144.09
17.00 58.61 46.35 HartfordFinl HIG 1.8 43 55.75
HAS 2.4 20 94.07
20.93 116.20 77.20 Hasbro
7.87 33.00 27.92 HealthcareAmer HTA 3.9131 31.40
s 47.28 80.60 50.84 Heico A
HEI.A 0.2 39 80.00
s 55.75 96.57 60.00 Heico
HEI 0.2 47 96.13
-25.35 81.30 42.16 Helm&Payne HP 4.8 dd 57.78
-7.51 93.50 65.28 HenrySchein HSIC ... 20 70.16
HLF 1.8 15 67.03
39.24 79.64 47.91 Herbalife
HSY 2.3 34 114.14
10.35 116.49 100.11 Hershey
HES 2.3 dd 43.40
-30.33 64.91 37.25 Hess
7.06 15.12 12.70 HewlettPackard HPE 2.1 69 14.41
HLT 0.8815 77.09
38.14 78.62 55.00 Hilton
46.09 48.41 23.46 HollyFrontier HFC 2.8 25 47.86
HOLX ... 16 43.53
8.50 46.80 35.76 Hologic
36.17 186.31 133.05 HomeDepot HD 1.9 25 182.58
15.38 33.81 27.05 HondaMotor HMC ... 10 33.68
33.15 156.70 113.60 Honeywell HON 1.9 23 154.25
5.69 38.00 29.75 HormelFoods HRL 2.0 23 36.79
85.07 51.53 27.21 DR Horton DHI 1.0 19 50.58
6.90 20.23 17.26 HostHotels HST 4.0 25 20.14
-3.38 31.85 24.40 HuanengPower HNP 6.7 28 25.16
HUBB 2.4 25 128.87
10.43 131.68 109.31 Hubbell
HUM 0.6 20 253.64
24.32 264.56 186.25 Humana
s 15.76 113.04 83.35 JBHunt
JBHT 0.8 30 112.37
10.29 14.93 12.14 HuntingtonBcshs HBAN 3.0 18 14.58
29.67 253.44 179.61 HuntingIngalls HII 1.2 18 238.83
66.14 32.59 18.93 Huntsman HUN 1.6 15 31.70
28.94 73.33 50.21 HyattHotels H
... 43 71.25
87.44 137.86 64.69 IAC/InterActive IAC ... 31 121.44
IBN 0.8 21 9.48
39.23 9.93 6.69 ICICI Bank
IDXX ... 51 156.60
33.54 173.01 113.92 IdexxLab
28.58 48.53 34.20 IHSMarkit INFO ... 47 45.53
28.94 19.01 13.63 ING Groep ING 3.1 ... 18.18
IVZ 3.2 16 36.56
20.50 37.85 28.75 Invesco
110.78 248.23 95.04 IPG Photonics IPGP ... 31 208.06
IQV ...352 102.06
34.20 110.67 74.73 IQVIA
-13.09 64.03 47.06 IcahnEnterprises IEP 11.6 5 51.80
ICLR ... 22 114.00
51.60 124.48 73.76 Icon
IEX 1.1 34 131.20
45.68 135.70 88.29 IDEX
34.88 169.69 120.06 IllinoisToolWks ITW 1.9 25 165.17
ILMN ... 41 216.55
69.13 230.72 126.18 Illumina
-15.10 36.39 27.59 ImperialOil IMO 1.7 16 29.51
INCY ... dd 96.41
-3.85 153.15 92.91 Incyte
INFY 2.5 17 16.06
8.29 16.14 13.42 Infosys
15.61 96.23 74.35 Ingersoll-Rand IR 2.1 22 86.75
s 12.93 142.14 113.07 Ingredion
INGR 1.7 20 141.12
INTC 2.4 16 44.56
22.86 47.30 33.23 Intel
65.43 62.33 33.01 InteractiveBrkrs IBKR 0.7 52 60.40
ICE 1.1 26 70.49
24.94 72.99 55.80 ICE
s 31.90 61.19 45.41 InterContinentl IHG ... 28 61.07
IBM 3.9 13 152.50
-8.13 182.79 139.13 IBM
30.84 156.64 113.16 IntlFlavors IFF 1.8 30 154.17
6.01 58.96 49.60 IntlPaper
IP 3.4 26 56.25
-12.60 25.71 18.30 Interpublic IPG 3.5 14 20.46
s 39.30 159.77 111.90 Intuit
INTU 1.0 42 159.65
74.97 405.05 208.24 IntuitiveSurgical ISRG ... 48 369.87
s 20.50 24.14 19.80 InvitatHomes INVH 1.3 ... 24.10
9.62 65.51 37.26 IonisPharma IONS ...358 52.43
16.01 41.53 31.63 IronMountain IRM 6.2 48 37.68
-0.97 4.95 3.85 IsraelChemicals ICL ... 6 4.07
20.23 14.59 9.10 ItauUnibanco ITUB 0.4 11 12.36
-0.11
0.29
-0.02
0.38
0.92
-1.10
2.46
-0.08
2.62
0.18
0.76
0.14
0.17
0.16
0.50
0.07
-0.43
1.23
-0.25
1.29
0.76
-0.05
1.69
0.16
4.11
7.30
0.15
0.22
0.76
0.23
0.02
-0.04
...
0.15
2.31
0.02
1.11
0.55
0.18
-0.74
0.20
0.20
0.44
2.82
0.54
-1.80
0.29
3.85
4.33
1.00
1.47
-3.02
0.78
0.98
0.17
1.07
0.06
0.57
0.45
0.02
1.02
0.17
0.24
0.36
0.11
1.12
3.03
0.98
0.25
4.95
0.76
0.90
1.36
-0.08
1.35
0.65
-0.07
0.27
2.52
0.59
-0.06
0.48
1.96
2.52
5.70
-0.21
0.44
0.16
0.72
2.14
1.30
0.35
0.17
0.74
-1.50
2.54
1.07
0.28
3.46
9.31
0.34
0.87
-0.28
0.01
0.07
GHI
YTD 52-Week
% Chg Hi Lo Stock
Yld
Net
Sym % PE Last Chg
-13.29 19.02 10.55 MarathonOil MRO 1.3 dd 15.01
s 30.59 66.19 46.88 MarathonPetrol MPC 2.4 21 65.75
s 26.82 1147.70 878.42 Markel
MKL ...255 1147.10
31.94 211.06 145.10 MarketAxess MKTX 0.7 50 193.85
MAR 1.0 35 129.82
57.01 129.99 81.04 Marriott
22.96 86.54 66.75 Marsh&McLen MMC 1.8 23 83.11
-7.71 244.32 191.09 MartinMarietta MLM 0.9 30 204.44
55.88 24.22 13.83 MarvellTech MRVL 1.1 37 21.62
MAS 1.0 25 42.31
33.81 43.79 31.29 Masco
48.57 154.65 102.98 Mastercard MA 0.7 36 153.40
72.11 32.87 15.42 MatchGroup MTCH ... 20 29.43
36.01 55.43 38.18 MaximIntProducts MXIM 2.7 26 52.46
10.13 106.58 89.49 McCormickVtg MKC.V 2.0 28 102.53
8.68 106.50 89.65 McCormick MKC 2.1 28 101.43
s 43.00 175.09 118.18 McDonalds MCD 2.3 25 174.06
15.77 169.29 133.82 McKesson MCK 0.8 8 162.60
17.23 89.72 69.35 Medtronic MDT 2.2 23 83.50
70.13 27.47 14.88 MelcoResorts MLCO 1.3 43 27.05
104.25 329.00 150.29 MercadoLibre MELI 0.2106 318.91
MRK 3.4 55 56.24
-4.47 66.80 53.63 Merck
7.05 55.91 44.17 MetLife
MET 3.1 dd 51.41
52.89 694.48 408.97 MettlerToledo MTD ... 39 639.94
43.44 62.30 32.38 MichaelKors KORS ... 17 61.65
18.35 36.21 27.86 MicroFocus MFGP ... 49 33.41
35.23 95.92 62.21 MicrochipTech MCHP 1.7 35 86.75
93.43 49.89 20.19 MicronTech MU ... 10 42.40
-4.19 57.97 46.09 Microsemi MSCC ... 34 51.71
s 39.77 87.09 61.95 Microsoft
MSFT 1.9 30 86.85
5.29 110.95 92.50 MidAmApt MAA 3.6 49 103.10
MIDD ... 25 130.79
1.54 150.87 107.53 Middleby
15.75 7.34 5.94 MitsubishiUFJ MTU ... 10 7.13
0.56 3.85 3.37 MizuhoFin MFG ... 9 3.61
3.84 11.59 7.76 MobileTeleSys MBT 7.5 11 9.46
37.58 286.85 196.50 MohawkInds MHK ... 21 274.71
-17.99 102.14 76.25 MolsonCoors B TAP 2.1 8 79.80
-15.35 108.00 79.84 MolsonCoors A TAP.A 2.0 8 82.91
MDLZ 2.0 30 43.38
-2.14 47.23 39.19 Mondelez
11.54 122.80 104.77 Monsanto MON 1.8 23 117.35
s 44.36 64.25 41.02 MonsterBev MNST ... 46 64.01
59.72 153.86 93.51 Moody's
MCO 1.0 54 150.57
25.68 54.25 40.06 MorganStanley MS 1.9 15 53.10
-15.04 34.36 19.23 Mosaic
MOS 0.4 26 24.92
12.38 94.96 76.92 MotorolaSol MSI 2.2 24 93.15
MYL ... 25 40.52
6.21 45.87 29.39 Mylan
124.31 29.78 12.11 NRG Energy NRG 0.4 dd 27.50
5.71 26.14 22.50 NTTDoCoMo DCM ... 16 24.05
NVR ... 25 3398.63
103.63 3509.88 1611.84 NVR
NXPI ... 25 116.35
18.71 118.20 96.00 NXP Semi
NDAQ 2.0 51 77.51
15.48 80.14 65.98 Nasdaq
t -8.87 75.24 57.91 NationalGrid NGG 3.5 12 57.99
-11.70 41.90 29.90 NatlOilwell NOV 0.6 dd 33.06
-2.13 46.34 36.45 NatlRetailProp NNN 4.4 35 43.26
363.73 57.83 11.41 NektarTherap NKTR ... dd 56.90
NTAP 1.4 25 57.27
62.38 58.99 35.08 NetApp
NTES 0.8 25 355.79
65.22 375.10 211.11 Netease
NFLX ...192 190.12
53.57 204.38 122.87 Netflix
82.14 75.98 37.34 Neurocrine NBIX ... dd 70.49
112.59 94.63 40.01 NewOrientalEduc EDU ... 49 89.50
-17.54 17.68 11.67 NY CmntyBcp NYCB 5.2 15 13.12
-31.49 55.08 27.45 NewellBrands NWL 3.0 12 30.59
-31.33 45.53 24.41 NewfieldExpln NFX ... 16 27.81
5.28 39.62 30.85 NewmontMin NEM 0.8184 35.87
38.56 17.05 11.75 NewsCorp B NWS 1.2 dd 16.35
39.79 16.87 11.41 NewsCorp A NWSA 1.2 dd 16.02
32.62 159.40 117.12 NextEraEnergy NEE 2.5 18 158.43
-11.28 45.73 34.22 NielsenHoldings NLSN 3.7 26 37.22
s 27.46 65.07 50.35 Nike
NKE 1.2 28 64.79
19.74 27.76 21.65 NiSource
NI 2.6 32 26.51
-32.58 41.47 22.98 NobleEnergy NBL 1.6 dd 25.66
NOK 4.1 dd 4.61
-4.16 6.65 4.50 Nokia
-0.34 6.80 5.28 NomuraHoldings NMR ... 10 5.88
29.23 150.48 107.16 Nordson
NDSN 0.8 29 144.80
-5.09 53.13 37.79 Nordstrom JWN 3.3 16 45.49
30.57 143.35 105.89 NorfolkSouthern NSC 1.7 22 141.11
9.88 99.66 81.92 NorthernTrust NTRS 1.7 22 97.85
s 33.49 311.15 223.88 NorthropGrum NOC 1.3 23 310.47
26.97 61.48 42.04 NorwegCruise NCLH ... 17 54.00
NVS 3.2 30 84.86
16.50 86.90 69.53 Novartis
46.43 53.49 32.83 NovoNordisk NVO 0.9 23 52.51
NUE 2.5 18 60.11
0.99 66.00 51.67 Nucor
35.54 38.28 14.38 Nutanix
NTNX ... dd 36.00
NVDA 0.3 48 191.56
79.46 218.67 95.17 NVIDIA
-0.11
1.09
26.70
-1.22
2.10
0.09
2.24
-0.03
0.46
1.47
0.59
1.18
2.37
1.19
0.92
5.40
1.67
0.51
-2.10
0.23
-1.08
10.01
0.24
0.11
1.28
0.16
0.32
2.16
0.65
1.43
-0.04
...
0.12
1.15
0.43
-0.84
0.61
-0.50
0.88
1.07
0.46
0.02
0.95
0.51
-0.18
-0.83
-6.91
0.47
0.04
-0.31
0.63
0.31
1.85
-0.10
-0.64
0.56
0.07
0.07
0.23
0.11
-0.82
-0.03
-0.10
-0.20
0.45
0.62
0.26
0.03
-0.80
...
0.01
0.94
0.53
0.25
1.26
3.56
1.19
0.39
-0.35
0.57
0.55
5.09
YTD 52-Week
% Chg Hi Lo Stock
Yld
Net
Sym % PE Last Chg
34.58 53.30 38.71 SensataTech ST ... 29 52.42
29.68 38.10 27.18 ServiceCorp SCI 1.6 19 36.83
s 38.39 52.18 36.34 ServiceMaster SERV ... 30 52.13
74.20 130.05 73.66 ServiceNow NOW ... dd 129.50
13.06 23.44 19.76 ShawComm B SJR 4.1 29 22.68
50.26 413.98 265.14 SherwinWilliams SHW 0.8 36 403.82
21.17 48.98 36.77 ShinhanFin SHG ... 7 45.61
SHPG 0.2 29 151.27
-11.22 192.15 137.17 Shire
SHOP ... dd 105.22
145.44 123.94 39.85 Shopify
-10.07 164.23 116.68 SignatureBank SBNY ... 19 135.07
-5.55 188.10 150.15 SimonProperty SPG 4.4 30 167.81
20.67 5.89 4.40 SiriusXM
SIRI 0.8 30 5.37
s 55.13 38.41 22.30 SkechersUSA SKX ... 24 38.13
SWKS 1.4 17 94.63
26.75 117.65 73.94 Skyworks
AOS 0.9 30 60.73
28.26 63.70 46.44 SmithAO
15.62 40.43 29.51 Smith&Nephew SNN 1.4 19 34.78
SJM 2.6 24 119.44
-6.73 143.68 99.56 Smucker
SNAP ... dd 15.75
-35.66 29.44 11.28 Snap
SNA 2.0 17 168.20
-1.79 181.73 140.83 SnapOn
83.84 63.80 26.92 SOQUIMICH SQM 1.6 40 52.67
SNE ... 25 44.84
59.97 48.33 27.91 Sony
SO 4.5 93 51.31
4.31 53.51 46.71 Southern
SCCO 2.3 28 43.32
35.63 44.69 31.55 SoCopper
s 29.82 64.92 48.71 SouthwestAir LUV 0.8 19 64.70
-9.03 47.48 38.42 SpectraEnerPtrs SEP 7.0 15 41.70
-10.31 146.09 98.11 SpectrumBrands SPB 1.5 22 109.72
46.34 85.77 51.85 SpiritAeroSys SPR 0.5 30 85.39
SPLK ... dd 82.46
61.21 84.88 50.64 Splunk
S
-34.80 9.65 5.42 Sprint
... dd 5.49
SQ ... dd 37.03
171.68 49.56 13.53 Square
44.49 170.90 114.27 StanleyBlackDck SWK 1.5 21 165.71
4.99 64.87 52.58 Starbucks SBUX 2.1 30 58.29
26.78 100.90 74.45 StateStreet STT 1.7 17 98.53
STO 4.4 dd 20.15
10.47 21.02 16.18 Statoil
12.00 41.66 32.15 SteelDynamics STLD 1.6 18 39.85
32.35 93.39 65.27 Steris
STE 1.4 53 89.19
90.48 24.80 10.67 STMicroelec STM 1.1 31 21.62
SYK 1.2 33 154.25
28.75 160.62 116.50 Stryker
12.96 8.74 6.93 SumitomoMits SMFG ... 9 8.63
23.70 96.08 73.66 SunComms SUI 2.8128 94.77
5.60 41.07 32.22 SunLifeFinancial SLF 3.5 12 40.56
3.76 36.71 27.96 SuncorEnergy SU 3.0 20 33.92
18.51 66.11 51.96 SunTrustBanks STI 2.5 17 65.00
21.31 34.20 23.77 Symantec SYMC 1.0 dd 28.98
2.54 38.05 26.01 SynchronyFin SYF 1.6 14 37.19
SYT ... 41 92.38
16.86 93.61 78.91 Syngenta
49.27 94.80 58.74 Synopsys
SNPS ...103 87.86
SYY 2.4 28 60.95
10.08 62.79 48.85 Sysco
0.05
0.50
1.05
1.15
1.45
1.49
1.43
1.23
0.85
0.83
0.20
-0.32
-0.30
-1.51
-0.81
0.92
1.10
1.00
0.70
1.33
0.14
1.64
0.53
2.52
0.64
0.11
1.73
-0.32
0.94
0.66
0.28
0.01
-0.19
-1.09
-1.30
-0.52
1.45
0.34
1.78
-0.22
0.85
0.43
0.77
0.82
...
0.42
-0.09
2.86
0.75
-0.13
0.05
-0.51
0.04
...
0.07
0.08
1.14
0.02
1.32
-2.50
0.50
0.26
-0.05
0.79
1.81
4.41
0.31
0.15
-0.07
0.98
0.38
2.53
0.96
0.13
0.83
2.34
1.79
2.41
0.74
1.27
1.55
-0.64
0.08
0.04
-0.02
1.23
0.36
0.14
0.13
0.22
-0.97
1.07
-0.29
2.06
1.61
0.15
0.24
0.58
-2.35
0.12
0.17
JKL
JD ... dd 40.32
58.49 48.99 25.25 JD.com
23.00 108.40 81.64 JPMorganChase JPM 2.1 15 106.14
s 33.18 118.42 88.11 JackHenry JKHY 1.0 37 118.24
16.12 69.35 49.31 JacobsEngg JEC 0.9 27 66.19
6.60 17.28 13.55 JamesHardie JHX 1.2 29 16.95
s 21.41 37.55 30.24 JanusHenderson JHG 3.4280 37.15
24.31 163.75 104.82 JazzPharma JAZZ ... 22 135.53
JBLU ... 11 21.29
-5.04 24.13 18.05 JetBlue
JNJ 2.4 25 142.46
23.65 144.35 110.76 J&J
-9.54 44.70 34.51 JohnsonControls JCI 2.8 22 37.26
46.95 155.25 97.60 JonesLang JLL 0.5 20 148.48
0.50 30.96 23.87 JuniperNetworks JNPR 1.4 17 28.40
19.54 51.49 40.27 KAR Auction KAR 2.7 30 50.95
s 61.43 57.23 35.11 KB Fin
KB ... 8 56.97
KKR 3.4 10 20.10
30.60 20.77 15.30 KKR
34.25 110.00 77.84 KLA Tencor KLAC 2.2 16 105.63
KT ... 13 15.64
11.00 18.82 13.63 KT
30.77 114.85 79.05 KSCitySouthern KSU 1.3 22 110.96
K 3.3 29 64.99
-11.83 76.69 58.76 Kellogg
KEY 2.1 17 19.76
8.16 20.15 16.28 KeyCorp
16.71 45.65 35.05 KeysightTechs KEYS ... 71 42.68
2.87 78.33 67.00 KilroyRealty KRC 2.3 50 75.32
3.85 136.21 109.67 KimberlyClark KMB 3.3 20 118.51
-26.59 26.16 17.02 KimcoRealty KIM 6.1 35 18.47
-13.42 23.01 16.68 KinderMorgan KMI 2.8 32 17.93
28.81 44.45 26.68 Knight-Swift KNX ... 77 43.58
KSS 4.3 14 51.35
3.99 55.19 35.16 Kohl's
25.68 42.35 28.71 KoninklijkePhil PHG 2.3 23 38.42
-3.14 21.59 16.51 KoreaElcPwr KEP ... 9 17.90
-8.91 97.77 75.21 KraftHeinz KHC 3.1 25 79.54
KR 1.9 16 26.45
-23.36 36.44 19.69 Kroger
KYO ... 21 66.52
33.63 71.92 49.42 Kyocera
58.68 15.06 8.07 LATAMAirlines LTM 0.5 51 12.98
LB 4.1 18 58.11
-11.74 71.61 35.00 L Brands
7.70 17.05 11.91 LG Display LPL ... 4 13.84
LN ... 84 42.72
25.61 45.30 30.90 LINE
28.91 41.42 27.85 LKQ
LKQ ... 24 39.51
LLL 1.5 27 195.05
28.23 199.97 143.54 L3 Tech
LH ... 22 159.06
23.90 164.22 126.44 LabCpAm
76.22 219.70 104.28 LamResearch LRCX 1.1 17 186.32
14.10 79.17 62.45 LamarAdv LAMR 4.3 24 76.72
46.63 57.20 34.20 LambWeston LW 1.4 25 55.50
32.00 71.42 51.35 LasVegasSands LVS 4.1 27 70.50
LAZ 3.2 15 51.53
25.41 52.22 40.22 Lazard
LEA 1.2 11 172.40
30.24 181.38 131.82 Lear
-4.30 54.97 43.16 Leggett&Platt LEG 3.1 19 46.78
s 26.32 64.85 47.81 Leidos
LDOS 2.0 32 64.60
LEN.B 0.3 14 48.85
44.43 52.16 33.27 Lennar B
LEN 0.3 18 61.40
45.50 63.94 41.51 Lennar A
33.62 213.78 147.54 LennoxIntl LII 1.0 29 204.67
10.41 27.34 22.23 LeucadiaNatl LUK 1.6 17 25.67
13.04 104.66 72.00 LibertyBroadbandC LBRDK ...493 83.73
15.18 104.35 70.45 LibertyBroadbandA LBRDA ...491 83.46
6.57 37.00 27.36 LibertyGlobal C LBTYK ... 97 31.65
6.44 37.69 28.17 LibertyGlobal A LBTYA ...100 32.56
6.20 39.85 29.05 LibertyGlobal B LBTYB ...103 33.40
-1.18 28.11 19.65 LibertyLiLAC A LILA ... 67 21.70
0.99 27.82 19.58 LibertyLiLAC C LILAK ... 66 21.38
21.21 25.13 17.62 LibertyQVC B QVCB ... 10 24.54
24.22 26.00 17.24 LibertyQVC A QVCA ... 10 24.82
53.73 62.41 36.58 LibertyVenturesA LVNTA ... 24 56.68
7.37 39.37 27.63 LibertyFormOne A FWONA ... ... 33.66
12.77 41.14 27.55 LibertyFormOne C FWONK ... ... 35.33
13.91 26.52 19.30 LibertyBraves A BATRA ... dd 23.34
13.50 26.20 19.30 LibertyBraves C BATRK ... dd 23.37
15.27 46.43 34.04 LibertySirius A LSXMA ... 24 39.79
17.10 46.24 33.14 LibertySirius C LSXMK ... 24 39.72
11.42 45.40 37.21 LibertyProperty LPT 3.6 19 44.01
LLY 2.6 42 86.54
17.66 89.09 71.76 EliLilly
17.87 99.59 75.86 LincolnElectric LECO 1.7 22 90.37
14.97 78.74 61.45 LincolnNational LNC 1.7 12 76.19
25.63 33.10 22.50 LionsGate B LGF.B ... 32 30.83
22.64 34.75 24.27 LionsGate A LGF.A ... 34 32.99
60.26 46.99 26.41 LiveNationEnt LYV ...2132 42.63
16.13 3.87 3.06 LloydsBanking LYG 2.9 20 3.60
s 29.16 323.38 247.01 LockheedMartin LMT 2.5 26 322.82
L 0.5 17 49.75
6.24 51.02 45.01 Loews
35.28 40.82 24.16 LogitechIntl LOGI 1.9 26 33.51
LOGM 0.81080 118.75
22.99 129.51 90.35 LogMeIn
LOW 1.9 21 86.69
21.89 88.55 70.49 Lowe's
s 16.66 76.01 47.26 lululemon
LULU ... 38 75.82
23.61 108.13 78.01 LyondellBasell LYB 3.4 11 106.03
-0.31
1.48
2.18
0.06
-0.15
-0.02
0.03
0.11
0.81
0.11
3.00
-0.40
0.62
0.62
0.17
1.21
0.28
1.09
-0.06
0.24
0.45
0.52
1.26
0.11
0.09
0.49
1.57
0.19
-0.17
0.56
0.55
-0.30
0.25
-0.46
0.23
0.01
0.20
2.64
3.22
4.22
-0.84
0.05
-0.05
0.41
0.54
0.79
1.05
0.30
0.26
0.52
0.21
-1.16
-0.99
0.22
0.23
1.40
0.04
-0.02
-0.21
0.72
0.16
0.20
0.27
0.19
0.23
-2.46
-2.30
0.07
0.04
0.55
0.49
0.27
0.49
-0.18
-0.02
5.81
0.30
0.25
-0.40
1.11
1.04
0.60
MN
9.25 176.62 141.12 M&T Bank MTB 1.8 20 170.90
14.05 34.65 25.15 MGM Resorts MGM 1.3 32 32.88
4.30 39.43 30.88 MPLX
MPLX 6.5 39 36.11
MSCI 1.2 38 127.93
62.39 130.58 77.75 MSCI
MAC 4.5 76 65.48
-7.57 73.34 52.12 Macerich
M 6.1 11 24.59
-31.33 39.78 17.41 Macy's
-8.91 81.77 63.55 MagellanMid MMP 5.3 19 68.89
28.94 56.82 39.50 MagnaIntl MGA 2.0 10 55.96
40.45 131.99 88.39 Manpower MAN 1.5 19 124.82
16.33 21.70 16.62 ManulifeFin MFC 3.1 15 20.73
1.86
0.05
-1.83
0.38
-1.09
-0.21
-0.03
0.68
2.22
0.05
OPQ
2.09 37.41 32.56 OGE Energy OGE 3.9 18 34.15
OKE 5.7 33 52.16
-9.14 59.47 47.14 ONEOK
-13.72 286.57 169.43 OReillyAuto ORLY ... 20 240.20
-0.86 73.51 57.20 OccidentalPetrol OXY 4.4543 70.62
50.87 131.39 80.56 OldDomFreight ODFL 0.3 32 129.43
OMC 3.2 15 74.41
-12.57 88.09 65.32 Omnicom
ON ... 22 19.90
55.96 22.15 12.37 ON Semi
OTEX 1.6 58 32.79
6.10 35.45 30.14 OpenText
25.62 53.14 38.30 Oracle
ORCL 1.6 21 48.30
ORAN 3.4 93 17.32
14.40 17.63 14.50 Orange
50.36 134.59 85.51 OrbitalATK OA 1.0 25 131.91
IX ... 8 84.03
7.97 89.51 73.70 Orix
OSK 1.1 24 88.57
37.08 94.16 61.74 Oshkosh
69.39 91.40 50.77 OwensCorning OC 1.0 26 87.34
PCG 4.0 12 53.05
-12.70 71.57 49.83 PG&E
PHI 6.3 13 30.00
8.89 38.54 25.80 PLDT
PNC 2.1 18 144.95
23.93 146.24 113.66 PNC Fin
PKX ... 15 76.31
45.21 79.20 50.37 POSCO
PPG 1.6 22 115.09
21.45 119.85 93.80 PPG Ind
-0.23 40.20 33.22 PPL
PPL 4.7 15 33.97
PTC ...1209 60.46
30.67 67.12 45.72 PTC
PVH 0.1 20 134.04
48.54 139.51 84.53 PVH
PCAR 1.4 18 69.16
8.23 75.68 61.93 Paccar
35.90 120.75 84.01 PackagingCpAm PKG 2.2 21 115.27
-11.33 57.53 43.08 PacWestBancorp PACW 4.1 16 48.27
17.76 157.65 107.31 PaloAltoNtwks PANW ... dd 147.26
-4.58 31.46 24.65 ParkHotels PK 7.7 2 28.53
38.76 195.82 139.49 ParkerHannifin PH 1.4 25 194.26
-26.50 37.72 22.98 ParsleyEnergy PE ...324 25.90
s 14.60 70.17 54.20 Paychex
PAYX 2.9 30 69.77
PYPL ... 59 75.65
91.66 79.39 39.02 PayPal
PSO 1.4 dd 9.62
-3.70 10.24 7.04 Pearson
10.25 36.30 30.32 PembinaPipeline PBA 4.9 36 34.53
PNR 2.1 31 68.17
21.58 71.76 55.76 Pentair
-2.84 19.85 15.96 People'sUtdFin PBCT 3.7 21 18.81
PEP 2.7 25 119.22
13.94 119.39 101.06 PepsiCo
38.31 74.11 50.59 PerkinElmer PKI 0.4 37 72.13
PRGO 0.7 dd 86.50
3.93 91.73 63.68 Perrigo
-7.20 81.80 60.69 PetroChina PTR 3.0 36 68.39
-6.73 11.71 7.61 PetroleoBrasil PBR ... 26 9.43
2.50 10.73 6.96 PetroleoBrasilA PBR.A ... 25 9.03
s 14.53 37.23 30.90 Pfizer
PFE 3.4 23 37.20
19.88 123.55 88.90 PhilipMorris PM 3.9 24 109.68
PSX 2.8 25 99.92
15.63 100.46 75.14 Phillips66
69.25 38.39 18.00 PilgrimPride PPC ... 13 32.14
5.05 66.67 51.13 PinnacleFoods PF 2.3 38 56.15
14.75 92.48 75.75 PinnacleWest PNW 3.1 19 89.54
-13.46 199.83 125.46 PioneerNatRscs PXD 0.1218 155.83
-37.16 33.74 18.38 PlainsAllAmPipe PAA 5.9 22 20.29
PAGP 5.6 dd 21.29
-38.61 35.86 18.98 PlainsGP
51.86 134.66 77.91 PolarisIndustries PII 1.9 39 125.12
POT 2.0 36 19.63
8.51 20.27 15.74 Potash
27.66 156.40 115.00 Praxair
PX 2.1 27 149.60
PCLN ... 25 1760.00
20.05 2067.99 1459.49 Priceline
21.62 72.23 56.12 PrincipalFin PFG 2.8 12 70.37
9.29 94.67 83.24 Procter&Gamble PG 3.0 25 91.89
56.23 56.23 35.23 Progressive PGR 1.2 23 55.46
24.99 67.53 48.33 Prologis
PLD 2.7 20 65.98
11.21 117.99 97.88 PrudentialFin PRU 2.6 12 115.73
23.55 51.08 38.17 Prudential PUK 1.6 18 49.16
19.19 53.28 41.67 PublicServiceEnt PEG 3.3 59 52.30
-5.34 232.21 192.15 PublicStorage PSA 3.8 31 211.56
81.88 34.60 18.18 PulteGroup PHM 1.1 17 33.43
QGEN ... 82 32.12
10.39 36.34 27.51 Qiagen
24.27 81.20 52.05 Qorvo
QRVO ... dd 65.53
-0.67 69.28 48.92 Qualcomm QCOM 3.5 25 64.76
8.24 39.67 30.23 QuantaServices PWR ... 20 37.72
7.71 112.97 90.10 QuestDiag DGX 1.8 21 98.99
0.30
-0.58
-1.25
0.07
1.32
1.31
0.36
-0.10
-1.89
0.17
0.26
-0.43
0.85
1.54
0.33
0.04
1.98
0.51
1.27
0.17
0.33
2.35
-0.06
0.38
1.27
1.83
-0.12
2.56
-0.52
1.44
1.39
-0.26
-0.57
-0.67
0.31
1.20
1.30
2.46
-0.71
-0.05
0.03
0.74
2.00
0.37
-0.52
0.21
0.57
-0.75
-0.08
0.11
-2.07
-0.33
0.46
-0.92
0.48
0.89
0.32
0.51
1.26
-0.22
0.36
0.54
0.38
0.51
0.30
0.06
0.28
1.87
RS
35.74 23.30 16.30 RELX
RENX 1.4 28 22.75
RELX 1.3 29 23.46
30.55 24.03 17.50 RELX
RPM 2.5 38 51.91
-3.57 56.48 47.87 RPM
-18.15 46.92 28.76 RSP Permian RSPP ... 60 36.52
6.41 103.09 66.06 RalphLauren RL 2.1 99 96.11
20.68 108.29 68.36 RandgoldRscs GOLD 1.1 32 92.13
27.39 91.29 68.97 RaymondJames RJF 1.1 20 88.24
s 34.77 191.54 141.16 Raytheon
RTN 1.7 26 191.38
-0.14 63.60 52.85 RealtyIncome O 4.4 47 57.40
RHT ... 78 128.78
84.76 129.61 68.54 RedHat
1.52 72.05 58.63 RegencyCtrs REG 3.0109 70.00
5.95 543.55 340.09 RegenPharm REGN ... 35 388.95
19.22 17.41 13.00 RegionsFin RF 2.1 18 17.12
RGA 1.3 13 156.57
24.43 165.12 121.92 ReinsGrp
3.99 88.58 68.46 RelianceSteel RS 2.2 16 82.71
15.85 67.18 56.17 RepublicSvcs RSG 2.1 28 66.09
RMD 1.6 35 85.29
37.45 87.81 60.13 ResMed
27.99 68.89 46.88 RestaurantBrands QSR 1.4 42 61.00
RIO 4.5 15 49.12
27.72 50.77 37.66 RioTinto
13.28 57.67 42.92 RobertHalf RHI 1.7 22 55.26
ROK 1.7 30 190.93
42.06 210.72 133.61 Rockwell
45.03 136.50 88.80 RockwellCollins COL 1.0 28 134.53
29.50 54.95 37.81 RogersComm B RCI 3.1 26 49.96
38.60 48.29 32.82 Rollins
ROL 1.0 56 46.82
37.98 267.83 182.03 RoperTech ROP 0.6 37 252.62
15.79 78.81 52.85 RossStores ROST 0.8 24 75.96
16.93 80.98 66.66 RoyalBkCanada RY 3.6 14 79.17
35.26 7.67 5.37 RoyalBkScotland RBS ... dd 7.48
52.47 133.75 81.59 RoyalCaribbean RCL 1.9 17 125.09
18.98 65.83 50.32 RoyalDutchA RDS.A 5.8 25 64.70
14.27 67.40 53.10 RoyalDutchB RDS.B 5.7 26 66.24
28.02 127.35 78.34 Ryanair
RYAAY ... 16 106.59
SAP 1.2 34 114.28
32.22 116.90 84.76 SAP
57.20 174.07 107.21 S&P Global SPGI 1.0 25 169.05
53.85 173.97 102.29 SBA Comm SBAC ...195 163.68
45.02 71.92 47.88 SEI Investments SEIC 0.8 31 71.58
SINA ... 57 100.90
79.87 119.20 55.79 Sina
SHI 6.4 7 57.05
5.39 64.80 50.67 SINOPEC
s 34.93 28.33 20.44 SK Telecom SKM ... 8 28.20
-4.02 115.34 93.92 SLGreenRealty SLG 3.1100 103.23
43.36 42.50 28.43 SS&C Tech SSNC 0.7 39 41.00
s 38.38 239.40 159.44 SVB Fin
SIVB ... 27 237.55
217.90 173.36 44.55 SageTherap SAGE ... dd 162.32
54.08 109.19 68.23 Salesforce.com CRM ...10548 105.48
SNY 3.8 21 43.17
6.75 50.65 38.45 Sanofi
33.26 18.73 11.12 SantanderCons SC 0.7 10 17.99
s 13.43 32.53 26.92 Sasol
SSL 3.7 14 32.43
-39.38 74.99 41.15 Scana
SCG 5.5 14 44.42
-26.04 87.84 61.02 Schlumberger SLB 3.2159 62.09
SCHW 0.6 33 51.28
29.92 51.98 37.16 SchwabC
7.36 103.36 81.48 ScottsMiracleGro SMG 2.1 34 102.58
16.59 88.45 64.87 ScrippsNetworks SNI 1.4 18 83.21
STX 6.0 16 42.02
10.09 50.96 30.60 Seagate
SEE 1.3 32 48.68
7.37 50.62 41.22 SealedAir
-0.42 71.31 45.31 SeattleGenetics SGEN ... dd 52.55
-6.69 9.14 4.49 SemicondctrMfg SMI ... 30 7.11
15.79 122.97 99.71 SempraEnergy SRE 2.8 26 116.53
-0.12
-0.11
0.51
-0.35
-0.74
0.24
1.60
2.60
0.43
2.65
0.80
5.83
0.21
0.04
0.27
1.24
1.36
-0.12
1.06
1.04
1.48
0.82
-0.94
1.12
0.24
0.45
-0.38
-0.09
3.43
0.15
-0.12
-5.85
0.48
1.46
-2.12
0.91
1.34
-0.85
0.24
0.10
-0.30
7.88
4.29
1.24
0.08
-0.29
1.36
1.64
-0.28
1.08
0.51
1.77
0.08
0.65
0.73
0.07
0.75
0.25
-0.32
2.46
3.33
-0.45
3.59
0.42
4.07
1.99
1.64
2.18
-0.29
1.21
0.54
0.69
-0.38
0.92
-0.29
2.70
0.41
0.39
-0.21
0.41
0.85
-0.71
0.27
0.77
1.27
-0.14
0.02
0.77
-1.41
0.56
-0.28
0.01
1.62
0.06
2.91
0.03
0.12
-0.01
-0.29
0.95
0.23
0.20
...
-0.12
0.05
TUV
153.51 36.16 11.02 TAL Education TAL ...124 29.64
19.22 54.24 36.12 TD Ameritrade AMTD 1.6 32 51.98
38.89 96.78 66.20 TE Connectivity TEL 1.7 20 96.22
TU 4.3 23 37.28
17.05 38.50 31.23 Telus
TX 3.3 9 30.00
24.22 33.39 22.17 Ternium
TSU ... 29 18.48
56.61 19.50 11.20 TIM Part
TJX 1.7 20 74.17
-1.28 80.92 66.44 TJX
8.95 68.88 54.60 T-MobileUS TMUS ... 25 62.66
36.29 104.40 65.33 TRowePrice TROW 2.2 17 102.57
37.39 43.02 28.50 TaiwanSemi TSM 2.9 18 39.50
125.58 120.62 48.58 TakeTwoSoftware TTWO ...102 111.19
TPR 3.2 27 42.83
22.30 48.85 34.16 Tapestry
-17.32 61.83 39.59 TargaResources TRGP 7.9 dd 46.36
TGT 4.0 13 62.61
-13.32 78.37 48.56 Target
-8.81 40.34 28.96 TataMotors TTM 0.0 14 31.36
-22.80 37.09 24.53 TechnipFMC FTI 1.9 ... 27.43
18.92 26.45 14.56 TeckRscsB TECK 0.7 8 23.82
108.31 38.69 17.04 TelecomArgentina TEO 1.2 20 37.85
-4.16 10.53 7.50 TelecomItalia TI 3.0 ... 8.52
-1.65 8.45 6.27 TelecomItalia A TI.A 4.3 ... 7.17
49.89 186.53 119.67 TeledyneTech TDY ... 31 184.36
56.48 271.23 155.47 Teleflex
TFX 0.5 46 252.17
14.35 16.85 12.63 TelefonicaBras VIV ... 22 15.30
5.00 11.64 8.98 Telefonica TEF 4.9 17 9.66
6.72 36.19 27.17 TelekmIndonesia TLK 2.4 18 31.12
TS 1.7118 29.95
-16.13 37.21 25.91 Tenaris
TER 0.7 20 41.88
64.88 44.62 25.24 Teradyne
TSLA ... dd 343.45
60.72 389.61 197.60 Tesla
-48.66 38.31 10.85 TevaPharm TEVA 1.8 dd 18.61
s 38.71 101.60 72.47 TexasInstruments TXN 2.5 24 101.22
TXT 0.1 24 55.22
13.71 56.47 43.66 Textron
36.27 201.20 139.88 ThermoFisherSci TMO 0.3 33 192.27
0.96 48.61 42.22 ThomsonReuters TRI 3.1 31 44.20
49.92 156.86 87.96 ThorIndustries THO 1.0 19 149.99
33.28 244.23 173.55 3M
MMM 2.0 27 238.00
s 30.88 101.88 76.08 Tiffany
TIF 2.0 27 101.34
-6.51 103.90 85.88 TimeWarner TWX 1.8 17 90.25
TOL 0.7 15 47.70
53.87 51.08 30.45 Toll Bros
21.49 90.35 72.59 Torchmark TMK 0.7 19 89.61
TTC 1.2 27 64.70
15.64 73.86 55.16 Toro
13.07 58.76 45.18 TorontoDomBk TD 3.4 13 55.79
TOT 5.4 16 54.37
6.67 57.07 48.15 Total
s 58.70 77.87 48.65 TotalSystem TSS 0.7 34 77.81
6.09 128.11 103.62 ToyotaMotor TM ... 11 124.34
-9.75 78.25 49.87 TractorSupply TSCO 1.6 20 68.42
6.02 51.85 44.88 TransCanada TRP 4.1 31 47.87
11.08 295.00 203.72 TransDigm TDG ... 35 276.55
79.31 56.58 30.39 TransUnion TRU ... 43 55.46
TRV 2.1 16 134.89
10.19 137.95 113.76 Travelers
TRMB ... 54 40.67
34.89 43.97 28.61 Trimble
40.00 10.08 6.50 TurkcellIletism TKC 3.0 14 9.66
-4.64 3.80 2.44 TurquoiseHill TRQ ... 28 3.08
s 24.79 35.86 24.81 21stCenturyFoxA FOXA 1.0 22 34.99
s 25.58 35.34 24.30 21stCenturyFoxB FOX 1.1 21 34.22
TWTR ... dd 22.23
36.38 23.24 14.12 Twitter
26.84 188.22 139.61 TylerTech
TYL ... 53 181.09
31.78 84.65 57.20 TysonFoods TSN 1.5 17 81.28
15.57 18.31 15.10 UBS Group UBS 3.3 17 18.11
7.89 40.71 34.41 UDR
UDR 3.2127 39.36
4.01 52.00 44.82 UGI
UGI 2.1 19 47.93
USFD ... 26 30.39
10.59 31.50 25.43 US Foods
-14.39 314.86 187.96 UltaBeauty ULTA ... 28 218.25
19.70 233.42 180.29 UltSoftware ULTI ...225 218.28
5.50 25.39 19.33 UltraparPart UGP 2.5 24 21.88
-47.78 31.06 11.40 UnderArmour A UAA ... 47 15.17
-45.89 27.64 10.36 UnderArmour C UA ... 42 13.62
UN ... 26 57.10
39.06 61.62 39.89 Unilever
UL 3.0 25 55.96
37.49 60.13 39.59 Unilever
25.96 132.39 101.06 UnionPacific UNP 2.0 23 130.60
-12.51 83.04 56.51 UnitedContinental UAL ... 10 63.76
41.14 2.73 1.74 UnitedMicro UMC 3.3 19 2.47
UPS 2.8 29 118.00
2.93 125.16 102.12 UPS B
55.61 165.85 100.62 UnitedRentals URI ... 23 164.29
6.09 56.61 49.53 US Bancorp USB 2.2 16 54.50
s 15.10 126.44 106.85 UnitedTech UTX 2.2 20 126.17
-4.20 169.89 112.01 UnitedTherap UTHR ... 12 137.41
38.60 231.77 156.09 UnitedHealth UNH 1.4 25 221.82
202.93 192.75 55.30 UnivDisplay OLED 0.1 84 170.55
6.64 129.74 95.26 UniversalHealthB UHS 0.4 16 113.44
22.99 57.55 43.33 UnumGroup UNM 1.7 13 54.03
VEON 2.9 4 3.85
... 4.50 3.67 VEON
VER 7.0 dd 7.91
-6.50 9.12 7.44 VEREIT
VFC 2.5 31 74.41
39.48 74.87 48.05 VF
45.89 114.37 77.19 Visa
V 0.7 42 113.82
36.28 237.77 159.65 VailResorts MTN 1.9 37 219.84
VALE 5.1 11 11.17
46.59 11.71 7.47 Vale
35.74 22.81 8.31 ValeantPharm VRX ... 5 19.71
29.08 88.43 60.69 ValeroEnergy VLO 3.2 19 88.19
VNTV ... 52 75.87
27.26 76.22 58.13 Vantiv
40.71 114.09 76.29 VarianMed VAR ... 42 111.87
51.13 21.63 12.36 Vedanta
VEDL 11.7 19 18.77
37.54 68.07 40.50 VeevaSystems VEEV ... 61 55.98
VTR 4.9 38 64.25
2.77 72.36 58.96 Ventas
VRSN ... 31 115.03
51.22 118.28 75.71 VeriSign
17.04 98.60 75.60 VeriskAnalytics VRSK ... 35 95.00
VZ 4.5 14 52.67
-1.33 54.83 42.80 Verizon
97.99 167.85 71.46 VertxPharm VRTX ...187 145.86
VIAB 2.6 6 30.24
-13.85 46.72 22.13 Viacom B
-10.65 49.00 28.20 Viacom A
VIA 2.3 7 34.40
11.68 21.20 13.96 VistraEnergy VST ... 0 17.31
VMW ... 35 123.80
57.25 127.59 77.94 VMware
VOD 3.6 dd 31.07
27.18 31.54 24.31 Vodafone
-7.71 90.29 71.89 VornadoRealty VNO 3.1 19 77.84
16.19 47.04 33.53 VoyaFinancial VOYA 0.1 dd 45.57
-3.46 136.82 108.95 VulcanMatls VMC 0.8 42 120.82
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Friday, December 15, 2017
YTD 52-Week
% Chg Hi Lo Stock
YTD 52-Week
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How to Read the Stock Tables
0.39
1.10
0.71
-0.34
0.56
0.20
0.75
0.10
0.98
0.10
2.17
0.01
-0.64
0.67
-0.01
-0.18
0.41
-0.17
...
0.04
3.43
2.82
0.05
0.04
0.04
-0.22
0.86
5.56
1.31
0.97
0.84
3.95
-0.18
1.06
-0.08
2.00
0.60
0.62
0.75
0.30
-0.41
-0.77
1.18
-0.66
1.64
-0.61
2.07
0.07
2.31
0.43
-0.01
-0.01
0.11
...
-0.35
0.87
0.57
0.07
0.26
0.62
0.09
1.08
2.65
0.09
1.35
1.17
0.51
0.50
1.43
0.63
-0.03
1.16
3.12
0.35
2.41
1.63
0.57
0.05
0.51
-0.23
-0.06
0.01
1.06
0.90
1.23
0.28
0.03
0.71
0.99
2.10
0.82
0.40
0.79
0.89
0.27
0.33
3.33
0.53
0.25
0.07
2.55
-0.20
0.36
0.07
0.58
WXYZ
WBC ... 25 140.40
32.27 156.08 102.39 WABCO
16.23 70.09 56.05 WEC Energy WEC 3.2 22 68.17
19.58 72.41 57.58 W.P.Carey WPC 5.7 47 70.66
-15.76 119.12 82.44 WPP
WPP 3.2 11 93.22
WAB 0.6 29 76.67
-7.65 93.81 69.20 Wabtec
WMT 2.1 26 97.11
40.49 100.13 65.28 Wal-Mart
-13.07 88.00 63.82 WalgreensBoots WBA 2.2 19 71.94
34.37 74.20 51.36 WasteConnections WCN 0.8 53 70.40
s 21.10 86.82 69.00 WasteMgt WM 2.0 28 85.87
46.26 201.95 133.71 Waters
WAT ... 29 196.56
WSO 3.0 31 165.27
11.58 171.15 134.08 Watsco
W ... dd 79.26
126.13 84.19 34.30 Wayfair
WB ... 87 102.72
153.00 123.00 40.12 Weibo
47.10 213.97 133.21 WellCareHealth WCG ... 25 201.65
s 8.64 60.65 49.27 WellsFargo WFC 2.6 15 59.87
0.01 78.17 63.89 Welltower HCN 5.2 58 66.94
16.39 103.36 77.97 WestPharmSvcs WST 0.6 39 98.73
-2.25 57.50 49.20 WestarEnergy WR 2.9 23 55.08
17.84 60.25 44.64 WestAllianceBcp WAL ... 20 57.40
20.12 95.77 66.91 WesternDigital WDC 2.5 17 81.62
-13.55 47.82 33.92 WesternGasEquity WGP 5.9 22 36.61
-20.01 67.44 42.68 WesternGasPtrs WES 7.7 36 47.00
-10.31 22.70 18.39 WesternUnion WU 3.6 42 19.48
79.84 102.58 55.83 WestlakeChem WLK 0.8 22 100.69
2.17 27.05 22.17 WestpacBanking WBK 6.0 14 23.99
24.31 64.87 49.23 WestRock WRK 2.7 23 63.11
19.11 36.92 29.81 Weyerhaeuser WY 3.6 31 35.84
11.54 23.06 16.96 WheatonPrecMet WPM 1.7 47 21.55
WHR 2.7 15 164.49
-9.51 202.99 158.80 Whirlpool
WMB 4.0 52 29.73
-4.53 32.69 26.82 Williams
0.05 42.32 34.28 WilliamsPartners WPZ 6.3 25 38.05
27.58 165.00 120.87 WillisTowers WLTW 1.4 46 156.00
10.12 6.40 4.50 Wipro
WIT 0.6 32 5.33
41.81 53.50 30.92 WooriBank WF 2.8 9 45.38
56.56 116.89 65.79 Workday
WDAY ... dd 103.47
47.45 114.49 75.36 Wyndham WYN 2.1 20 112.61
91.92 166.79 85.57 WynnResorts WYNN 1.2 46 166.03
79.59 80.10 42.07 XPO Logistics XPO ... 65 77.51
24.77 52.22 40.04 XcelEnergy XEL 2.8 22 50.78
XRX 3.4 dd 29.65
28.91 34.13 22.89 Xerox
XLNX 2.1 29 67.98
12.61 75.14 54.99 Xilinx
XYL 1.1 39 67.57
36.45 69.88 46.67 Xylem
YPF 1.1 63 21.00
27.27 26.48 15.00 YPF
YY ... 19 108.54
175.34 123.48 37.81 YY
YNDX ... 79 32.05
59.22 35.32 19.92 Yandex
29.95 84.29 62.36 YumBrands YUM 1.5 25 82.30
55.21 43.55 25.53 YumChina YUMC ... 28 40.54
23.86 18.08 11.14 ZTO Express ZTO ... 27 14.95
11.26 37.18 29.30 ZayoGroup ZAYO ... 99 36.56
Z
13.02 51.23 32.56 Zillow C
... dd 41.22
ZG ... dd 41.18
12.98 50.91 32.63 Zillow A
11.67 133.49 100.87 ZimmerBiomet ZBH 0.8 36 115.24
16.19 52.20 38.43 ZionsBancorp ZION 1.3 19 50.01
ZTS 0.7 41 71.96
34.43 72.99 52.00 Zoetis
-0.50
0.47
0.87
1.22
-0.20
-0.02
1.58
0.87
1.21
2.58
-0.27
3.08
0.89
-1.36
0.65
0.65
0.49
0.09
1.10
-1.02
-0.23
-1.00
0.30
-0.27
-0.03
0.56
0.19
0.06
0.57
0.05
-0.30
2.52
-0.03
0.73
0.12
1.84
1.03
1.38
0.39
0.34
-0.09
0.87
-0.66
0.27
...
0.26
0.05
-0.15
0.08
0.50
0.54
2.42
0.79
0.20
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.
B8 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
NEW HIGHS AND LOWS
JBHunt
JBHT 113.04 0.9
ICU Medical
ICUI 220.95 1.8
Ingredion
INGR 142.14 1.5
24.97 9.7
InnovativeIndProp IIPR
61.19 1.2
InterContinentl IHG
41.65 1.8
IntlSpeedwayA ISCA
19.25 1.9
Intricon
IIN
Intuit
INTU 159.77 2.2
18.84 1.6
InvescoMtg
IVR
InvitatHomes INVH 24.14 1.4
9.54 11.0
IovanceBiotherap IOVA
18.95 2.4
IssuerDirect
ISDR
JackHenry
JKHY 118.42 1.9
37.55 -0.1
JanusHenderson JHG
57.23 1.1
KB Fin
KB
61.96 3.2
KLX
KLXI
KeyTechnology KTEC 21.61 -3.7
73.08 3.0
LGI Homes
LGIH
LandmarkInfrPtrs LMRK 18.50 1.9
Leidos
LDOS 64.85 1.7
LendingTree
TREE 347.75 2.9
LockheedMartin LMT 323.38 1.8
26.80 308.4
LongFinA
LFIN
lululemon
LULU 76.01 1.4
MBFinPfdC
MBFIO 26.14 0.3
0.80 9.6
MillAcqn Wt
MIIIW
MVB Financial MVBF 20.15 0.5
7.54 1.6
MV Oil
MVO
66.19 1.7
MarathonPetrol MPC
Markel
MKL 1147.70 2.4
Maximus
MMS 72.15 0.7
McDonalds
MCD 175.09 0.5
4.07 8.6
MedallionFin
MFIN
MellanoxTech MLNX 63.28 1.1
Microsoft
MSFT 87.09 2.6
MonsterBev
MNST 64.25 1.4
Morningstar
MORN 97.85 1.1
25.00 1.6
NavientNts2043 JSM
18.30 1.0
NewResidInvt NRZ
Friday, December 15, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Highs
42.87
AAR
AIR
89.67
Aflac
AFL
Ablynx
ABLX 24.44
Accenture
ACN 152.90
AdtalemGlbEduc ATGE 45.75
51.96
AgreeRealty
ADC
45.90
AirLease
AL
AlexandriaRlEst ARE 133.00
AllscriptsHlthcr MDRX 15.20
Allstate PfdD ALLpD 27.98
104.46
Allstate
ALL
Alphabet C
GOOG 1067.62
AnaptysBio
ANAB 93.41
AquaAmerica WTR 38.42
AtHomeGroup HOME 30.43
AveryDennison AVY 116.13
44.37
AvisBudget
CAR
AxoGen
AXGN 27.75
24.16
BBVABancoFr BFR
11.36
BRT Apartments BRT
BankofAmPfdEE BACpA 27.17
69.32
BarrettBus
BBSI
2.68
BellerophonTherap BLPH
65.54
BestBuy
BBY
BobEvansFarms BOBE 78.49
297.37
Boeing
BA
Bottomline
EPAY 35.99
18.45
BrandywineRealty BDN
BrightHorizons BFAM 93.76
3.4
1.0
1.1
1.0
1.0
0.8
2.4
0.7
3.5
1.9
1.3
1.4
3.6
1.6
3.6
1.4
3.2
4.4
-0.7
1.3
0.3
4.2
8.3
2.5
0.1
...
3.2
1.7
2.5
52-Wk %
Sym Hi/Lo Chg Stock
BrookfieldInfr BIP
Brown-Forman A BF.A
CGI Group
GIB
CVR Energy
CVI
CVR Refining CVRR
CadenceBancorp CADE
CanPacRlwy
CP
CapitalOne
COF
Carters
CRI
Carvana
CVNA
CasellaWaste CWST
CenturyCasinos CNTY
ChathamLodging CLDT
Clorox
CLX
CoastwayBancorp CWAY
CollectorsUniv CLCT
ConcertPharm CNCE
ConsumersEnerPf CMSpB
CorEnergyInfr CORR
Costco
COST
Cray
CRAY
CreditAcceptance CACC
Cree
CREE
Crocs
CROX
DeltaAir
DAL
Deluxe
DLX
DeutscheBank DB
DominionEner D
DouglasEmmett DEI
Dunkin'
DNKN
EMCOR
EME
45.23
66.56
54.64
35.93
13.70
25.85
181.28
97.31
113.92
24.89
21.86
9.85
23.38
148.23
21.35
30.82
27.35
105.26
38.06
195.35
24.95
329.03
39.43
13.04
56.49
76.94
19.54
85.26
41.41
61.66
82.03
-1.4
1.0
0.9
2.2
2.6
2.6
-0.9
2.4
0.9
-5.9
1.9
5.4
-0.6
0.9
1.4
3.3
1.4
-0.5
3.0
3.3
2.3
0.4
2.9
14.7
1.5
0.9
1.0
0.6
0.3
1.1
1.8
52-Wk %
Sym Hi/Lo Chg
EasterlyGovtProp DEA
Ebix
EBIX
Ecopetrol
EC
EducDev
EDUC
EnantaPharma ENTA
EnPro
NPO
EntergyLA Bds52 ELJ
EsteeLauder
EL
Etsy
ETSY
FSB Bancorp FSBC
FedRealtyInvPfdC FRTpC
FederatedInvest FII
FirstBancshares FBMS
FirsthandTechVal SVVC
ForescoutTechs FSCT
Fortinet
FTNT
GDSHoldings GDS
GTT Comm
GTT
GardnerDenver GDI
GasLogPfdA
GLOGpA
GenomicHealth GHDX
Gildan
GIL
GladstoneInvt GAIN
Graco
GGG
GriffinIndlRealty GRIF
GrubHub
GRUB
HVBancorp
HVBC
Heico A
HEI.A
Heico
HEI
HercHoldings HRI
HubSpot
HUBS
22.14
79.10
13.03
17.46
55.85
91.38
25.75
129.79
20.54
17.56
25.14
35.68
34.25
9.00
32.58
43.80
20.95
43.05
32.90
27.63
35.57
32.61
11.40
136.15
37.35
73.32
15.40
80.60
96.57
65.25
91.40
52-Wk %
Sym Hi/Lo Chg Stock
Stock
1.2
1.7
...
19.2
3.5
2.9
1.0
1.4
1.8
2.1
0.2
2.0
1.6
3.5
7.2
2.2
4.2
2.4
2.9
-0.1
6.8
-1.3
2.6
3.1
0.6
1.1
-2.0
5.1
4.7
2.5
3.8
52-Wk %
Sym Hi/Lo Chg Stock
NexstarMedia NXST
Nike
NKE
NorthropGrum NOC
NuSTAR PfdC NSpC
OM AssetMgmt OMAM
OakValleyBncp OVLY
OconeeFederalFin OFED
OnDeckCapital ONDK
Overstock
OSTK
PJT Partners PJT
PRA HealthSci PRAH
Paychex
PAYX
PeoplesFinSvcs PFIS
PerformanceFood PFGC
Pfizer
PFE
PlanetFitness PLNT
Presidio
PSDO
ProtoLabs
PRLB
QuanexBldg
NX
RBB Bancorp RBB
R1RCM
RCM
Raytheon
RTN
RedLionHotels RLH
ResoluteForest RFP
Roku
ROKU
SK Telecom
SKM
SMTC
SMTX
SPX FLOW
FLOW
SVB Fin
SIVB
Sasol
SSL
ScorpioBulkNt19 SLTB
SeaChange
SEAC
ServiceMaster SERV
SevenStarsCloud SSC
SiebertFin
SIEB
SixFlags
SIX
SkechersUSA SKX
SmithMicro
SMSI
Snyders-Lance LNCE
75.60
65.07
311.15
25.47
16.92
19.25
30.35
5.95
70.00
45.85
90.43
70.17
50.98
31.85
37.23
33.04
17.75
101.00
24.60
27.03
4.45
191.54
9.65
9.80
53.17
28.33
1.94
47.21
239.40
32.53
25.80
3.94
52.18
5.33
14.30
67.25
38.41
3.10
47.56
1.0
0.4
1.2
0.6
3.3
4.7
4.4
4.4
11.1
2.5
1.3
2.1
3.6
2.9
2.0
3.5
4.9
1.4
1.1
1.7
3.5
1.4
1.6
1.6
13.3
0.9
...
1.7
3.4
4.4
1.2
3.2
5.0
27.3
11.8
1.8
3.3
4.1
5.3
Cash Prices | WSJ.com/commodities
Friday, December 15, 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.
Friday
Fibers and Textiles
0.9025
0.9888
2.620
2.620
3.220
2.240
2.540
2.010
2.490
59.850
12.100
Gold, per troy oz
1261.79
1356.42
1254.60
1392.60
*1255.60
*1251.00
1305.41
1317.96
1317.96
1521.39
1233.35
1317.96
4.85
110
3.1600
96.0
473.4
233
95
223
2.8175
384.00
25.00
7.9900
316.10
9.3300
7.3750
4.2300
4.0050
5.2050
183.70
164.16
0.8668
2.2450
166.00
153.00
65.75
2112
1.1826
1.3879
1.7650
15.05
n.a.
61.51
n.a.
0.8445
n.a.
165.50
Fats and Oils
34.7000
0.2300
n.a.
0.3241
0.2650
0.3000
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
December 15, 2017
Money Rates
Silver, troy oz.
16.1000
19.3200
16.0200
20.0250
£11.9300
15.9850
12080
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
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
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
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
Metals
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
Food
0.6175
0.7515
*84.70
65.500
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
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.
Other metals
Week
Latest ago
Inflation
LBMA Platinum Price PM
*879.0
Platinum,Engelhard industrial
885.0
Platinum,Engelhard fabricated
985.0
Palladium,Engelhard industrial
1033.0
Palladium,Engelhard fabricated
1133.0
Aluminum, LME, $ per metric ton
*2017.0
Copper,Comex spot
3.1100
Iron Ore, 62% Fe CFR China-s
70.7
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
639
Nov. index
level
Chg From (%)
Oct. '17 Nov. '16
U.S. consumer price index
246.669
253.492
All items
Core
0.002
–0.06
2.2
1.7
International rates
Week
Latest ago
Prime rates
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 12/14
Source: WSJ Market Data Group
Policy Rates
Euro zone
Switzerland
52-Week
High
Low
0.00
0.50
0.00
0.50
Futures Contracts
0.50
1.50
Britain
Australia
0.00
0.50
0.00
0.50
0.50
1.50
Open
interest
2,240
135,134
1,901
333,225
30,068
35,119
11,703
25,771
3
55,336
111,895
480,553
355,047
170,302
258,974
265,498
88,211
106,358
84,437
105,362
181,416
316,199
268,308
150,118
131,146
82,196
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
March
July
348.75
365.25
350.75
367.25
March
May
252.25
259.25
Jan
March
t
t
3.450 3.470 3.865 3.253
3.469 3.487 3.899 3.281
30 days
60 days
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 December 14, 2017.
Other prime rates aren’t directly comparable;
lending practices vary widely by location.
Complete Money Rates table appears Monday
through Friday.
Sources: Bureau of Labor Statistics; SIX Financial
Information
Settle
Chg
March
May
13.81
13.66
13.94
13.76
March
May
27.00
27.22
March
May
75.06
75.44
Jan
March
147.30
147.25
Open
interest
13.64
13.49
13.66
13.52
27.09
27.22
26.99
26.91
27.00
27.07
.22
.13
76.75 s
76.80 s
75.04
75.38
75.92
76.32
.59 170,723
.69 48,321
144.35
144.30
144.50
144.50
t
–.11 417,336
–.10 162,305
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
147.85
147.25
–2.40
–2.05
2,999
2,200
3,658
4,993
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Dec
155-040 155-160
154-260 155-120
5.0 14,871
March'18 154-020 154-150
153-220 154-090
6.0 774,081
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-235 124-260
124-155 124-205
–4.5 39,513
March'18 124-160 124-175
124-070 124-135
–4.5 3,192,095
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-192 116-202
116-147 116-175
–3.7 40,674
March'18 116-127 116-135
116-070 116-102
–4.2 2,977,974
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-102 107-102
107-090 107-095
–1.2 19,841
March'18 107-047 107-047
107-022 107-032
–1.5 1,740,945
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.703
98.705
98.703
98.705
.005 127,029
Jan'18
98.590
98.600
t 98.590
98.600
.005 286,737
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.078 101.234
101.000 101.156
…
3,334
March'18 98.594 98.688
98.406
98.641
… 23,725
1 Month Libor (CME)-$3,000,000; pts of 100%
Jan
98.4775 98.4825
98.4775 98.4800
…
5,045
Feb
98.4800 98.4800
98.4775 98.4800
…
2,379
Eurodollar (CME)-$1,000,000; pts of 100%
Dec
98.3825 98.3850
98.3775 98.3750 –.0100 1,572,360
March'18 98.2350 98.2500
98.2300 98.2300 –.0100 1,470,484
June
98.0900 98.1100
98.0750 98.0800 –.0150 1,361,501
Dec
97.9100 97.9450
97.8950 97.9000 –.0200 1,704,648
347.50
364.25
255.50
262.25
251.75
259.25
254.25
260.75
2.50
2.00
968.00
978.75
972.25
983.25
964.00
974.50
967.25
978.00
–.50 183,548
–.75 245,718
Jan
March
321.30
325.20
323.00
327.00
320.40
324.10
320.60
324.50
–1.00 71,664
–1.10 159,060
Jan
March
33.16
33.34
33.66
33.84
32.97
33.15
33.16
33.34
–.02 86,498
–.03 179,881
Jan
March
1175.00
1203.50
1180.50
1208.50
1170.50
1200.00
1170.50
1200.00
March
May
418.75
431.25
421.50
433.75
415.00
427.50
418.25
430.75
… 312,256
… 86,740
March
May
418.25
431.50
421.00
433.75
415.25
427.75
417.50
430.25
–.75 202,299
–1.00 50,881
March
May
617.00
626.00
621.75
629.50
617.00
626.00
620.00
628.25
3.00
3.75
42,357
12,113
Jan
March
146.700
144.700
148.225
146.075
145.050
142.800
147.750
145.550
1.500
1.200
15,814
21,470
Dec
Feb'18
116.750
119.825
119.250
121.575
116.500
118.800
118.900
121.025
2.625
8,325
1.875 129,538
67.525
72.175
68.625
72.925
67.175
71.725
68.525
72.800
Soybeans (CBT)-5,000 bu.; cents per bu.
Soybean Meal (CBT)-100 tons; $ per ton.
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Wheat (CBT)-5,000 bu.; cents per bu.
Wheat (KC)-5,000 bu.; cents per bu.
Wheat (MPLS)-5,000 bu.; cents per bu.
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Feb
April
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Jan
428.00
434.50
426.00
431.90
March
418.10
427.00
417.50
424.80
Milk (CME)-200,000 lbs., cents per lb.
Dec
15.52
15.53
15.50
15.50
Jan'18
14.76
14.93
14.30
14.40
Cocoa (ICE-US)-10 metric tons; $ per ton.
March
1,886
1,903
1,871
1,877
May
1,885
1,899
1,868
1,874
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
117.05
117.05
t 116.90
116.95
March'18 120.40 122.25
120.30
120.75
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Dec
March'18
.8899
.8949
.8926
.8978
.8871
.8924
.8880 –.0034 70,731
.8933 –.0031 205,379
Dec
March'18
.7813
.7826
.7849
.7864
.7755
.7772
.7764 –.0081
.7780 –.0079
Dec
March'18
1.3427
1.3483
1.3448
1.3504
1.3301
1.3364
1.3321 –.0125 68,669
1.3383 –.0118 163,812
Dec
March'18
1.0108
1.0190
1.0128
1.0213
1.0067
1.0153
1.0095 –.0035
1.0181 –.0031
.7659
.7661
.7657
.7656
.7665
.7694
.7692
.7690
.7691
.7676
.7638
.7639
.7635
.7634
.7650
Canadian Dollar (CME)-CAD 100,000; $ per CAD
346.50
363.25
Oats (CBT)-5,000 bu.; cents per bu.
–1.00 848,821
–.75 218,713
–1.00
–1.00
4,895
1,274
4,943
4,874
.900
.550
93,263
59,048
1.20
3.10
3,364
2,378
–.01
–.30
3,896
3,637
–16 137,628
–16 48,707
–2.20
49
.45 129,465
WellesleyBancorp WEBK
WellsFargo Wt WFC.WS
WellsFargo
WFC
Wiley B
JW.B
Wiley A
JW.A
WillScot
WSC
WolverineWwide WWW
WW Ent
WWE
XeniaHotels
XHR
28.95
27.09
60.65
65.60
65.40
12.43
30.51
32.67
22.63
0.2
2.4
1.1
1.9
1.3
0.4
5.0
1.2
0.8
5.00
1.15
2.69
3.75
9.40
28.38
1.90
17.59
41.79
4.72
5.74
-9.7
...
-4.5
-5.0
2.2
0.3
-5.5
-1.5
3.3
-3.6
-1.2
Lows
ACM Research ACMR
AchieveLifeSci ACHV
AchillionPharm ACHN
AdvantageOil AAV
AileronTherap ALRN
Alexander&Baldwin ALEX
AlliquaBioMed ALQA
AnteroResources AR
Argan
AGX
BlueknightEner BKEP
Boxlight
BOXL
52-Wk %
Sym Hi/Lo Chg Stock
CM Finance
CMFN
CUI Global
CUI
Cohen
COHN
ColonyNorthStar CLNS
CommerceBcshPfB CBSHP
CrescentPoint CPG
Curis
CRIS
CypressEnergy CELP
CytoriTherap CYTX
DecipheraPharm DCPH
FAT Brands
FAT
FORM
FH
FirstRepBank FRC
FivePrimeTherap FPRX
FiveStarSrLiving FVE
Frank'sIntl
FI
GeniusBrands GNUS
GeospaceTech GEOS
GoldenMinerals AUMN
HECO CapTr III HEpU
HaymakerAcqWt HYACW
IDT
IDT
ImmunePharma IMNP
7.95 -0.6
2.44 0.8
7.50 2.9
11.97 -0.7
25.00 ...
6.42 -3.3
0.76 -3.8
5.55 6.5
0.22 12.6
15.15 -1.3
7.67 -11.4
1.10 1.8
86.73 -1.1
19.73 -4.0
1.35 ...
5.84 -1.0
2.01 -0.4
12.09 -1.4
0.37 -7.9
25.45 -5.7
0.77 -3.8
10.46 -0.9
0.70 -9.0
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Friday, December 15, 2017
Net YTD
Net YTD
NAV Chg %Ret Fund
American Century Inv
46.42 +0.42
American Funds Cl A
32.57 +0.23
AmcpA p
AMutlA p 42.59 +0.26
28.13 +0.14
BalA p
12.92
...
BondA p
63.89 +0.12
CapIBA p
CapWGrA 53.19 +0.26
56.79 +0.12
EupacA p
65.43 +0.49
FdInvA p
52.70 +0.36
GwthA p
10.37 -0.01
HI TrA p
42.57 +0.29
ICAA p
23.86 +0.08
IncoA p
45.18 +0.20
N PerA p
48.22 +0.33
NEcoA p
NwWrldA 66.97 +0.34
57.27 +0.36
SmCpA p
13.04
...
TxExA p
47.17 +0.37
WshA p
Baird Funds
...
AggBdInst 10.91
...
CorBdInst 11.27
BlackRock Funds A
GlblAlloc p 20.47 +0.02
BlackRock Funds Inst
22.57
...
EqtyDivd
20.61 +0.03
GlblAlloc
7.80 -0.01
HiYldBd
...
StratIncOpptyIns 9.94
Bridge Builder Trust
10.20
...
CoreBond
Dimensional Fds
...
5GlbFxdInc 10.89
EmgMktVa 30.09 -0.10
EmMktCorEq 22.39 +0.15
IntlCoreEq 14.18 -0.01
19.98 -0.19
IntlVal
20.61 -1.01
IntSmCo
22.18 -0.04
IntSmVa
US CoreEq1 22.67 +0.24
US CoreEq2 21.40 +0.23
35.68 -0.94
US Small
US SmCpVal 37.48 -1.32
US TgdVal 24.49 -0.83
38.62 -1.60
USLgVa
Dodge & Cox
Balanced 111.77 +0.49
14.17 +0.05
GblStock
13.88
...
Income
46.02 -0.04
Intl Stk
209.69 +1.51
Stock
DoubleLine Funds
NA
...
TotRetBdI
Net YTD
NAV Chg %Ret
NAV Chg %Ret Fund
Edgewood Growth Instituti
33.1 EdgewoodGrInst 30.24 +0.29 36.2
Federated Instl
21.4 StraValDivIS 6.16 +0.01 14.8
17.3 Fidelity
15.1 500IdxInst 93.48 +0.37 21.8
3.4 500IdxInstPrem 93.47 +0.36 21.8
13.6 500IdxPrem 93.48 +0.37 21.8
23.2 ExtMktIdxPrem r 61.53 -2.05 17.2
28.5 IntlIdxPrem r 42.42 -1.13 23.1
22.4 SAIUSLgCpIndxFd 14.40 +0.13 21.8
25.4 TMktIdxF r 76.27 -0.75 21.0
6.4 TMktIdxPrem 76.27 -0.73 21.0
... 3.5
18.9 USBdIdxInstPrem 11.61
12.5 Fidelity Advisor I
27.9 NwInsghtI 31.98 +0.23 28.1
34.1 Fidelity Freedom
16.95 +0.06 14.9
30.2 FF2020
14.68 +0.05 15.9
24.6 FF2025
18.44 +0.08 18.8
5.4 FF2030
19.6 Freedom2020 K 16.95 +0.06 NS
Freedom2025 K 14.68 +0.05 NS
4.3 Freedom2030 K 18.45 +0.08 NS
4.8 Freedom2035 K 15.51 +0.07 NS
Freedom2040 K 10.90 +0.05 NS
12.6 Fidelity Invest
23.72 +0.15 16.4
Balanc
88.06 +0.86 36.5
15.7 BluCh
123.05 +1.04 32.9
12.9 Contra
122.97 +1.05 33.0
7.7 ContraK
10.29 +0.02 11.0
4.5 CpInc r
39.34 -0.03 24.5
DivIntl
187.61 +2.22 37.2
4.2 GroCo
GrowCoK 187.59 +2.23 37.3
7.94
... 4.0
2.2 InvGB
11.29
... 4.4
28.9 InvGrBd
53.49 +0.12 18.4
31.7 LowP r
24.9 LowPriStkK r 53.44 +0.12 18.5
104.31 +0.95 26.2
22.9 MagIn
111.00 +1.43 40.0
26.2 OTC
23.37 +0.14 18.5
23.6 Puritn
20.3 SrsEmrgMkt 20.68 -0.58 35.6
18.1 SrsGroCoRetail 16.68 -1.53 37.9
10.7 SrsIntlGrw 15.84 -0.49 27.7
10.53 -0.37 18.6
6.0 SrsIntlVal
... 4.3
7.8 TotalBond 10.68
17.4 First Eagle Funds
58.35 +0.07 12.1
GlbA
11.7 FPA Funds
35.39 +0.19 9.8
19.0 FPACres
4.4 FrankTemp/Frank Adv
2.35 +0.01 8.2
20.8 IncomeAdv
17.0 FrankTemp/Franklin A
7.49
... 6.1
CA TF A p
2.37 +0.01 8.0
NA IncomeA p
InnovSolSuprt ISSC
Intersections INTX
JAKKS Pacific JAKK
JonesEnergy
JONE
LaredoPetrol
LPI
LegacyResPfdA LGCYP
MFC Bancorp MFCB
MaidenHldg6.7%PfdD MHpD
MainStreetCapNt MSCA
Medigus
MDGS
MedleyCapital MCC
NabrivaTherap NBRV
NationalGrid
NGG
NaturalHlthTrends NHTC
Natuzzi
NTZ
Neovasc
NVCN
Network1Techs NTIP
NewYorkREIT NYRT
OnTrackInnov OTIV
OnconovaTherap ONTX
Oragenics
OGEN
PacBiosciCA
PACB
ParkerDrilling PKD
RisDv A p
19.2
Income C t
7.8
60.61 +0.62
FrankTemp/Franklin C
2.40 +0.01
FrankTemp/Temp A
GlBond A p 12.03 -0.04
Growth A p 26.88 -0.42
FrankTemp/Temp Adv
GlBondAdv p 11.98 -0.05
Harbor Funds
CapApInst 77.82 +0.84
70.52 +0.21
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.89 +0.05
EqIncA
John Hancock Class 1
NA
...
LSBalncd
NA
...
LSGwth
John Hancock Instl
DispValMCI 23.12 -1.27
JPMorgan Funds
MdCpVal L 40.36 +0.33
JPMorgan R Class
11.63
...
CoreBond
Lazard Instl
EmgMktEq 19.67 +0.11
Loomis Sayles Fds
13.73 -0.46
LSBondI
Lord Abbett A
...
ShtDurIncmA p NA
Lord Abbett F
NA
...
ShtDurIncm
Metropolitan West
10.68
...
TotRetBd
...
TotRetBdI 10.68
...
TRBdPlan 10.05
MFS Funds Class I
42.14 +0.39
ValueI
MFS Funds Instl
25.04 -0.04
IntlEq
Mutual Series
32.79 +0.20
GlbDiscA
Oakmark Funds Invest
NA
...
EqtyInc r
83.66 +0.63
Oakmark
OakmrkInt 27.92 -0.20
Old Westbury Fds
14.30 +0.04
LrgCpStr
Oppenheimer Y
41.63 +0.05
DevMktY
42.69 -0.17
IntGrowY
Parnassus Fds
43.11 +0.44
ParnEqFd
PIMCO Fds Instl
3.6
16.2
3.7
37.4
20.7
NA
10.2
NA
NA
14.7
12.9
4.0
23.9
7.2
NA
NA
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
.7647
.7646
.7645
.7644
.7643
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
.05224
.05240
March'18 .05155 .05164
Euro (CME)-€125,000; $ per €
Dec
1.1767
1.1813
March'18 1.1850 1.1901
–.0028
–.0029
–.0028
–.0027
–.0027
51,058
91,139
51,505
76,101
68,567
1,444
605
99,482
284
.05212
.05134
.05227 –.00019 31,049
.05150 –.00020 166,464
1.1750
1.1836
1.1758 –.0035 133,760
1.1845 –.0030 396,112
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
24543
24537
24646 s
24708 s
24533
24536
24670
24677
2660.50
...
2682.90 s
2681.50 s
2658.70
...
2682.00
2683.60
S&P 500 Index (CME)-$250 x index
March
June
Mini S&P 500 (CME)-$50 x index
Dec
2650.00 2667.25 s
2650.00 2669.02
March'18 2652.75 2683.25 s 2652.50 2682.00
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1869.10 1875.90
1869.10 1871.34
March'18 1871.70 1901.90
1871.00 1890.00
Mini Nasdaq 100 (CME)-$20 x index
Dec
6389.5
6500.0 s
6384.0
6436.9
March'18 6403.8 6502.8 s
6400.8
6498.5
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1511.00 1518.80
1508.80 1510.22
March'18 1511.10 1542.70
1510.40 1536.80
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1476.20 1477.30
1468.90 1477.28
March'18 1477.10 1482.90 s 1477.10 1485.00
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
93.57
94.00
93.41
93.93
March'18
93.15
93.52
92.94
93.46
29,913
120 143,640
26.10
26.10
37,713
545
933,623
26.00 2,940,089
…
18.00
10,751
93,278
113,305
89.5 263,838
2.02
25.90
54,690
21,882
8.88
14.60
313
55
.45
.41
16,178
36,679
Source: SIX Financial Information
Company
Symbol
CubeSmart
Guaranty Bancshares
Invesco Mortgage Cap
MTGE Investment
STRATS Tr Allstate 2006-3
Urstadt Biddle Properties
Urstadt Biddle Prprts A
4.1 .30 /.27
1.8 .14 /.13
9.0 .42 /.41
10.7 .50 /.45
2.7 .0439 /.0406
5.2 .24 /.235
4.7 .27 /.265
Q
Q
Q
Q
M
Q
Q
Jan16 /Jan02
Jan10 /Dec26
Jan26 /Dec26
Jan09 /Dec29
Jan02 /Jan01
Jan19 /Jan05
Jan19 /Jan05
Initial
Two Harbors Pfd C
.30208
TWOpC
-3.7
...
-7.8
12.9
-5.1
-2.3
2.6
0.3
-0.2
-1.5
1.1
-4.7
-0.5
-1.8
-2.7
-7.0
...
...
9.3
-0.7
-3.3
-2.9
3.0
NA
...
10.26 -0.01
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
97.02 +1.01
BlChip
28.35 +0.17
CapApp
33.32 +0.22
EqInc
71.73 +0.64
EqIndex
63.17 +0.59
Growth
70.19 -4.50
HelSci
40.62 +0.41
InstlCapG
19.21 +0.02
IntlStk
15.19 -0.03
IntlValEq
86.88 +0.89
MCapGro
29.94 +0.18
MCapVal
52.21 -3.88
N Horiz
9.51
...
N Inc
OverS SF r 11.35 -0.01
23.53 +0.09
R2020
18.17 +0.08
R2025
26.80 +0.13
R2030
19.61 +0.10
R2035
28.19 +0.15
R2040
37.47 +0.34
Value
PRIMECAP Odyssey Fds
37.80 +0.46
Growth r
Principal Investors
NA
...
DivIntlInst
Prudential Cl Z & I
14.59
...
TRBdZ
Schwab Funds
41.93 +0.37
S&P Sel
TIAA/CREF Funds
19.63 +0.18
EqIdxInst
...
IntlEqIdxInst 19.86
Tweedy Browne Fds
28.61 +0.04
GblValue
VANGUARD ADMIRAL
500Adml 248.08 +2.22
34.90 +0.20
BalAdml
CAITAdml 11.78 -0.01
CapOpAdml r161.08 +1.95
37.05 +0.13
EMAdmr
EqIncAdml 79.21 +0.64
ExplrAdml 98.03 +1.23
ExtndAdml 84.48 +0.96
GNMAAdml 10.48 -0.01
GrwthAdml 72.89 +0.66
HlthCareAdml r 91.06 +0.84
...
HYCorAdml r 5.92
25.91
...
InfProAd
IntlGrAdml 95.07 +0.23
...
ITBondAdml 11.40
...
ITIGradeAdml 9.77
LTGradeAdml 10.69 +0.04
MidCpAdml 191.03 +1.72
...
MuHYAdml 11.44
...
MuIntAdml 14.14
...
MuLTAdml 11.67
...
MuLtdAdml 10.91
...
MuShtAdml 15.73
140.78
+1.29
PrmcpAdml r
REITAdml r 120.59 +0.77
SmCapAdml 70.43 +0.81
...
STBondAdml 10.39
STIGradeAdml 10.64 -0.01
0.36 33.5
35.78 5.3
45.55 -8.4
0.77 -2.5
15.33 -2.3
0.16 -13.8
4.77 -10.0
3.04 -22.8
3.46 -2.2
1.25 7.8
0.50 -15.7
0.93 -6.0
0.90 -9.4
2.25 -6.3
29.95 -0.2
77.20 -3.9
14.28 -2.1
0.24 -41.3
0.42 10.0
5.14 -2.2
8.63 -1.8
2.45 -1.6
0.52 -3.2
0.82 -5.3
Net YTD
NAV Chg %Ret
...
NA TotBdAdml 10.78
4.9 TotIntBdIdxAdm 22.06 +0.01
TotIntlAdmIdx r 30.11 +0.01
NA TotStAdml 66.97 +0.63
14.27 -0.01
TxMIn r
41.54 +0.37
NA ValAdml
WdsrllAdml 71.62 +0.66
NA WellsIAdml 66.50 +0.22
WelltnAdml 75.77 +0.46
NA WndsrAdml 81.34 +0.64
VANGUARD FDS
27.57 +0.28
37.6 DivdGro
15.7 HlthCare r 215.84 +2.00
16.1 INSTTRF2020 22.87 +0.07
21.6 INSTTRF2025 23.19 +0.09
34.7 INSTTRF2030 23.42 +0.10
27.7 INSTTRF2035 23.65 +0.11
38.9 INSTTRF2040 23.88 +0.12
25.6 INSTTRF2045 24.05 +0.13
39.97 +0.04
18.6 IntlVal
20.12 +0.05
24.7 LifeCon
33.82 +0.16
10.0 LifeGro
27.37 +0.10
30.6 LifeMod
27.92 +0.25
4.1 PrmcpCor
33.88 +0.32
25.1 SelValu r
27.72 +0.13
15.3 STAR
10.64 -0.01
17.2 STIGrade
19.0 TgtRe2015 16.12 +0.04
20.4 TgtRe2020 32.08 +0.10
21.5 TgtRe2025 18.85 +0.07
19.4 TgtRe2030 34.09 +0.14
TgtRe2035 20.97 +0.09
32.0 TgtRe2040 36.17 +0.18
TgtRe2045 22.74 +0.12
NA TgtRe2050 36.58 +0.19
13.70 +0.02
TgtRetInc
...
6.5 TotIntBdIxInv 11.03
27.45 +0.09
WellsI
43.87
+0.27
Welltn
21.8
40.35 +0.37
WndsrII
21.0 VANGUARD INDEX FDS
248.02 +2.22
23.4 500
ExtndIstPl 208.49 +2.38
14.3 SmValAdml 56.82 +0.70
10.74
...
TotBd2
18.00 +0.01
21.8 TotIntl
66.93 +0.62
13.9 TotSt
4.8 VANGUARD INSTL FDS
34.91 +0.21
29.6 BalInst
26.9 DevMktsIndInst 14.29 -0.01
18.2 DevMktsInxInst 22.33 -0.02
21.9 ExtndInst
84.48 +0.96
17.2 GrwthInst
72.90 +0.66
2.0 InPrSeIn
10.55
...
28.3
244.75 +2.19
InstIdx
20.1
244.77 +2.18
6.9 InstPlus
2.6 InstTStPlus 60.07 +0.56
41.2 MidCpInst 42.20 +0.38
4.0 MidCpIstPl 208.12 +1.86
4.3 SmCapInst 70.43 +0.81
12.3 STIGradeInst 10.64 -0.01
18.4 TotBdInst
10.78
...
7.8 TotBdInst2 10.74
...
4.6 TotBdInstPl 10.78
...
6.4
TotIntBdIdxInst 33.10 +0.01
2.2
120.43
+0.05
TotIntlInstIdx
r
1.2
29.4 TotItlInstPlId r120.45 +0.05
66.98 +0.63
6.0 TotStInst
41.53 +0.36
15.1 ValueInst
1.2 Western Asset
2.1 CorePlusBdI
NA
...
3.2
3.5
3.6
17.6
25.9
9.0
NA
20.2
26.8
18.1
31.0
24.2
17.2
Amount
Yld % New/Old Frq
Symbol
3.7
2.8
24.6
21.0
24.0
16.8
16.0
10.1
14.5
18.5
19.5
20.1
13.6
15.3
16.8
18.2
19.8
20.4
25.9
10.7
18.3
14.4
25.9
17.7
17.9
2.0
11.1
13.5
15.3
16.7
18.2
19.7
20.4
20.4
8.2
2.7
10.1
14.4
15.9
21.7
17.2
10.7
3.6
24.5
20.9
13.9
24.0
24.0
17.2
28.4
2.6
21.8
21.8
21.0
18.5
18.5
15.1
2.1
3.7
3.7
3.7
2.8
24.7
24.7
21.0
16.8
NA
Payable /
Record
Foreign
Payable /
Record
Increased
CUBE
GNTY
IVR
MTGE
GJT
UBP
UBA
52-Wk %
Sym Hi/Lo Chg
PhaseRx
PZRX
Prothena
PRTA
RE/MAX
RMAX
RMG Networks RMGN
RangeResources RRC
RegionalHlthProp RHE
RestorationRob HAIR
RevenHousingREIT RVEN
RevolutionLight RVLT
RexEnergy
REXX
RosettaGenmcs ROSG
SandRidgeMS SDT
SandRidgeMS II SDR
SandRidgePermian PER
Sanmina
SANM
TESARO
TSRO
TiVo
TIVO
TrovaGene
TROV
TurtleBeach
HEAR
US NatGas
UNG
US12mthNtlGas UNL
UnvlTechInst UTI
Vivus
VVUS
WPCS Intl
WPCS
Net YTD
NAV Chg %Ret Fund
Company
Amount
Yld % New/Old Frq
2.60
1.88
2.33
0.73
9.46
3.69
7.11
21.13
25.23
1.25
5.32
4.75
57.91
16.07
1.46
0.56
2.38
3.89
0.93
1.21
0.27
2.61
0.85
AllAsset
TotRt
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. tFootnotes p and r apply. NA-Not available due to incomplete price, performance or
cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NSFund didn’t exist at start of period.
Fund
52-Wk %
Sym Hi/Lo Chg Stock
Fund
Data provided by
Dividend announcements from December 15.
no
583
168,831
6.2
0.1
1.3
3.6
-0.1
2.0
1.0
2.0
1.5
2.7
0.3
...
1.5
3.0
2.3
1.9
1.4
4.1
8.5
1.8
2.3
1.4
0.7
Dividend Changes
n-
34
32
33,756
1,194
0.25
1.50
Fannie Mae
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
3.0420
3.1145
3.0420
3.1100 0.0615
March'18 3.0735 3.1400
3.0635
3.1345 0.0620
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1253.10 1260.30
1253.10 1254.30
0.50
Feb'18
1255.50 1264.50
1255.20 1257.50
0.40
April
1260.80 1269.00
1260.60 1262.00
0.40
June
1265.20 1273.10
1264.70 1266.40
0.50
Aug
1269.40 1276.80
1269.40 1270.80
0.50
Dec
1278.40 1286.10
1278.30 1279.60
0.20
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1035.00 1035.00 s
1035.00 1028.75 –13.30
Jan'18
1039.50 1039.50 s t 1039.50 1026.20 –13.30
March
1026.60 1029.50
1012.75 1015.40 –13.30
June
1018.35 1019.45
1010.95 1007.90 –11.55
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
888.50
8.20
Jan'18
881.90
893.90
878.80
889.40
8.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
16.010
16.010
15.955
15.978 0.128
March'18 15.920 16.120
15.915
16.063 0.129
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Jan
57.15
57.49
56.94
57.30
0.26
Feb
57.19
57.51
56.99
57.33
0.25
March
57.10
57.42
56.92
57.24
0.23
April
56.99
57.30
56.82
57.12
0.19
June
56.67
56.92
56.44
56.77
0.14
Dec
54.87
55.21
54.63
55.04
0.10
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9102
1.9288
1.9005
1.9035 –.0064
Feb
1.9154
1.9304
1.9032
1.9057 –.0063
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.6750
1.6873
1.6533
1.6548 –.0159
Feb
1.6919
1.7032
1.6709
1.6725 –.0150
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.686
2.732
t
2.581
2.612 –.072
Feb
2.700
2.746
t
2.602
2.635 –.069
March
2.677
2.719
t
2.581
2.610 –.068
April
2.630
2.657
t
2.540
2.563 –.059
May
2.639
2.664
t
2.555
2.577 –.055
Oct
2.744
2.755
t
2.658
2.680 –.051
0.50
1.50
Secondary market
Contract
High hilo
Low
Open
Metal & Petroleum Futures
—52-WEEK—
High Low
30-year mortgage yields
4.50 4.25 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
U.S.
Canada
Japan
19.79
25.24
64.92
29.92
21.50
17.17
101.60
101.88
77.87
34.00
35.86
35.34
169.75
53.65
11.05
126.44
73.50
84.00
13.64
131.89
21.94
86.82
76.05
52-Wk %
Sym Hi/Lo Chg Stock
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
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
SolarisOilfield SOI
SouthernNts77 SOJC
SouthwestAir LUV
StateAutoFin STFC
SteelPtrsPfdA SPLPpT
SunstoneHotelInv SHO
TexasInstruments TXN
Tiffany
TIF
TotalSystem
TSS
TrancntlRlty
TCI
21stCenturyFoxA FOXA
21stCenturyFoxB FOX
Unifirst
UNF
UnionBankshares UNB
UnitedSecBcshrs UBFO
UnitedTech
UTX
UsanaHealth USNA
UtahMedProducts UTMD
Verso
VRS
WEX
WEX
Waddell&ReedFin WDR
WasteMgt
WM
WattsWater
WTS
Friday Ultra
Friday
Energy
52-Wk %
Sym Hi/Lo Chg Stock
ly
.
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.
|WSJ.com/newhighs
Jan29 /Jan12
Agrium
Embraer ADR
Potash Corp
Tecnoglass
Teekay LNG 9% Pfd A
3.2
AGU
2.0
7.6
8.8
.875
.10794
.10
.14
.5625
4.0
4.2
.05
.50
ERJ
POT
TGLS
TGPpA
Q
Q
Q
Q
Jan18 /Dec29
Feb02 /Dec28
Feb01 /Dec29
Jan26 /Dec29
Jan15 /Dec29
Special
Host Hotels & Resorts
Piedmont Office Realty A
HST
PDM
Jan15 /Dec29
Jan09 /Dec26
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
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
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.836 s
10 2.355 s
l
1.892 t
2.532 t
l
0.000
0.750
France 2 -0.583 t
10 0.634 t
l
0.000
0.500
Germany 2 -0.718 s
10 0.306 t
l
0.050
2.050
Italy 2 -0.264 s
10 1.814 s
l
0.100
0.100
Japan 2 -0.149 s
10 0.048 t
l
2.750
1.450
Spain 2 -0.371 t
10 1.460 s
l
0.430 t
1.154 t
l
2.750
2.750
1.750
4.250
Australia 2
10
U.K. 2
10
l
l
l
l
l
l
l
l
Month ago
Year ago
1.811
2.353
1.683
2.326
1.276
2.603
1.912
2.566
1.793
2.601
1.828
2.878
-0.576
0.648
-0.569
0.738
-0.721
0.314
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
5.6
17.7
10.1
21.3
55.2
27.4
-238.7
-170.5
-192.4
-182.3
-0.746
0.377
-0.648 -241.9
0.781
-172.1
-0.782 -255.4
0.368 -204.9
-253.2
-203.9
-205.7
-223.5
-0.277
1.792
-0.229
1.820
-0.135
1.832
-210.0
-54.1
-208.8
-56.2
-141.0
-77.1
-0.155
0.052
-0.186
0.043
-196.6
-230.1
-147.3
-252.6
-0.368
1.443
-0.341
1.538
-0.197
-198.5
0.078 -230.7
-0.242 -220.7
1.448 -89.5
-217.9
-91.0
-151.8
-115.5
0.452
1.177
0.483
1.286
-135.9
-117.6
-112.7
-125.3
0.149
1.350
-140.6
-120.1
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Time Warner
DDR
General Electric
Ford Motor Credit
Glaxosmithkline Capital
Enel Spa*
Microsoft
Wells Fargo
TWX
DDR
GE
F
GSK
ENELIM
MSFT
WFC
Maturity
4.875 March 15, ’20
3.625
Feb. 1, ’25
5.000 Jan. 21, ’49
4.389
Jan. 8, ’26
2.850
May 8, ’22
8.750 Sept. 24, ’73
2.375
May 1, ’23
3.900
May 1, ’45
Current
Spread*, in basis points
One-day change
Last week
32 –21
147
–17
117
–14
130 –13
25 –12
127 –11
27 –11
82 –11
Stock Performance
Close ($)
% chg
n.a.
165
130
131
37
130
45
95
90.25
8.86
17.82
12.58
34.99
...
86.85
59.87
0.67
11.31
1.02
0.96
–0.71
...
2.55
1.10
69
n.a.
n.a.
42
140
23
41
96
…
43.40
52.67
98.52
12.58
83.50
...
25.78
…
2.31
1.06
1.41
0.96
2.04
...
0.62
…And spreads that widened the most
General Motors Financial
Hess
Aercap Ireland Capital Dac
American Express Credit
Ford Motor
Medtronic
National Australia Bank
Boston Scientific
GM
HES
AER
AXP
F
MDT
NAB
BSX
3.200
July 6, ’21
6.000 Jan. 15, ’40
4.500 May 15, ’21
2.600 Sept. 14, ’20
4.346
Dec. 8, ’26
2.500 March 15, ’20
2.125 May 22, ’20
3.850 May 15, ’25
73
258
75
41
138
28
39
104
17
16
8
8
8
8
7
14
High-yield issues with the biggest price increases…
Issuer
Symbol
Getty Images
Cobalt International Energy
Suncoke Energy Partners
Safeway
Mattel
Noble Holding International
Telecom Italia Capital
Freeport–Mcmoran
GYI
CIEI
SXCP
SWY
MAT
NE
TITIM
FCX
Coupon (%)
Maturity
7.000 Oct. 15, ’20
7.750
Dec. 1, ’23
7.500 June 15, ’25
7.450 Sept. 15, ’27
2.350
May 6, ’19
6.050 March 1, ’41
7.200 July 18, ’36
5.450 March 15, ’43
Bond Price as % of face value
Current
One-day change
69.000
66.500
105.000
87.500
99.000
68.625
126.000
96.750
1.75
1.55
1.25
1.21
1.13
1.11
1.00
3.00
Last week
Stock Performance
Close ($)
% chg
n.a.
n.a.
105.250
n.a.
99.020
67.000
125.250
94.249
...
...
17.05
...
15.48
3.73
...
16.98
...
...
...
...
–4.68
–4.60
...
4.88
89.250
92.500
96.000
68.250
75.750
n.a.
94.500
103.529
...
4.10
343.45
...
4.25
...
15.48
13.99
...
–2.84
1.65
...
1.43
...
–4.68
1.67
…And with the biggest price decreases
Hexion
Ferrellgas
Tesla
EP Energy
Chs/Community Health Systems
Fresh Market
Mattel
Mpt Operating Partnership
HXN
FGP
TSLA
EPENEG
CYH
TFM
MAT
MPW
6.625 April 15, ’20
6.750 Jan. 15, ’22
5.300 Aug. 15, ’25
8.000 Feb. 15, ’25
7.125 July 15, ’20
9.750
May 1, ’23
3.150 March 15, ’23
5.000 Oct. 15, ’27
89.750
91.750
96.547
70.375
73.500
55.750
86.125
101.906
–2.75
–1.75
–1.70
–1.63
–1.25
–0.89
–0.88
–0.84
*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.
Saturday/Sunday, December 16 - 17, 2017 | B9
* * * *
BUSINESS NEWS
Sirius’s Music Fees to Jump
Pilots for Ryanair in several countries had threatened to strike ahead of the Christmas holiday.
Ryanair Accepts Unions
LONDON—In a surprise announcement, Europe’s leading
budget airline, Ryanair Holdings PLC, said Friday that it
would recognize pilot unions,
after weeks of tensions and
the threat of strikes before
Christmas.
Ryanair had for years resisted dealing with pilot
unions, saying it would only
talk directly to staff at its various bases.
The British Airline Pilots’
Association said it welcomed
Ryanair’s change of heart and
that it had written to the company to accept its offer and
ask to include in the discussions the U.K.’s Trades Union
Congress and the Advisory,
Arbitration and Conciliation
Service.
Later on Friday, the German
Airline Pilots’ Association,
Vereinigung Cockpit e.V, said
it would call off planed strikes
as soon as a date for the start
of negotiations was set.
It also said, though, that it
would react accordingly if
“Ryanair’s proposal turned out
to be a ruse”.
Other European airlines
such as Air France-KLM SA
and Deutsche Lufthansa AG
have repeatedly been hit by
strikes from organized labor
over efforts to streamline
their operations in recent
years.
But a growing crisis in relations with its employees
forced a change from Ryanair.
The airline’s pilots mobilized
across Europe to unionize and
their efforts won backing in
October from the Air Line Pilots Association that represents U.S. cockpit crew and is
the world’s largest pilots
union.
Ryanair said it had written
to unions in its home market
Ireland, as well as in Germany,
the U.K., Italy, Spain and Portugal to sit down for talks.
Ryanair pilots in several of
those markets in recent days
had voted to strike next week.
“Christmas flights are very
important to our customers
and we wish to remove any
worry or concern that they
may be disrupted by pilot industrial action next week,”
Ryanair Chief Executive Michael O’Leary said. He called
on the unions to cancel strike
plans.
He conceded that the decision marked “a significant
change for Ryanair.”
Ryanair is Europe’s largest
airline by passenger numbers
and flew 120 million passengers last year.
The airline has expanded
rapidly by offering among the
cheapest fares in Europe,
while charging for most amenities. It sports among the
lowest cost of any airline in
Europe and has delivered
steady profits.
Edward Wilson, Ryanair’s
chief people officer, said allowing unionization wouldn’t
undermine the airline’s business model.
“The Ryanair model is
based on efficiency and productivity,” he said, adding
that the airline was already
offering competitive pay.
Still, Bernstein analyst
Daniel Roeska said before the
Ryanair announcement that
unionization would affect
both labor costs and some of
the flexibility the airline has
in staffing.
Ryanair has some contracted pilots and that model
may become less appealing if
staff unionize, he said.
Ryanair said it hoped to
have the national union structures in place early next year.
It would only deal with
unions representing Ryanair
pilots.
billion in revenue last year.
Meanwhile, the Copyright
Royalty Board lowered the rate
paid for cable and satellite TV
music services provided by Music Choice and Muzak. These
“pre-existing subscription services,” which currently shell
out 8.5% of gross revenue, will
pay 7.5% for the next five years.
SoundExchange had proposed a rate of 1.9 cents per
subscriber a month, with annual increases.
Music Choice declined to
comment and Muzak didn’t respond to requests for comment.
SoundExchange CEO Michael Huppe said the decision
highlights the need to change
the standards by which satellite radio and cable radio services operate that allow the
Copyright Royalty Board to set
rates outside the market.
SoundExchange has been
urging Congress to subject all
digital services to a “willing
buyer/willing seller standard”
that would reflect the open
market.
“There’s no reason recording
artists and record labels should
subsidize a company as profitable as Sirius XM,” said Mr.
Huppe.
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Friday, December 15, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
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
10.76
97.97
56.88
68.72
27.81
100.34
83.71
74.52
109.45
104.63
122.46
65.67
55.80
62.35
269.79
188.64
76.63
61.24
109.47
99.17
72.80
53.28
12.06
121.79
87.21
116.05
106.67
71.97
69.97
63.54
46.17
–1.01 –14.6
0.43 20.4
1.13 10.0
–0.09 –8.8
0.90 19.6
0.89 15.8
1.10 21.4
0.71 19.8
1.2
0.02
–0.05 –0.3
–0.07 –0.0
... 22.5
0.27 31.4
–0.02 23.5
0.84 19.9
1.00 14.1
1.67 11.4
0.86 19.4
1.3
0.03
0.75 12.0
–0.04 18.9
0.91 17.8
8.8
0.17
3.9
0.14
0.8
0.01
5.3
0.13
0.3
0.01
0.40 21.6
–0.03 21.2
0.16 27.5
0.22 31.9
ETF
Closing Chg YTD
Symbol Price (%) (%)
ETF
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
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
43.23
59.90
106.60
110.76
135.35
148.94
124.16
185.58
152.24
126.25
158.45
207.22
88.68
216.00
153.97
114.03
38.38
113.89
83.95
106.12
128.35
120.03
101.66
157.65
48.15
23.05
36.70
119.18
34.29
64.67
63.96
246.25
342.47
0.12
0.05
1.36
–0.10
0.87
0.83
0.80
1.43
1.43
1.41
0.88
0.87
0.86
0.96
0.87
0.77
0.37
...
–0.05
–0.02
0.38
0.98
0.02
1.14
0.73
0.04
0.03
0.21
–0.09
0.87
0.82
0.51
1.00
24.9
22.6
20.5
2.4
29.0
19.7
10.8
20.6
12.9
6.1
19.2
15.9
10.3
18.6
26.4
12.5
3.1
0.6
–0.6
1.2
7.7
23.2
0.3
33.1
15.8
–1.3
0.7
8.7
23.9
19.4
20.1
24.7
13.5
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY ROBERT WALL
Sirius XM Holdings Inc.
will pay almost 41% more for
the music it plays on its satellite-radio service starting next
year, the federal Copyright
Royalty Board has decided,
though labels and artists feel
the increase still falls short.
Beginning in 2018, Sirius,
the only satellite audio radio
service in the U.S., will pay
15.5% of gross revenue
through 2022.
The rates for these types of
compulsory, government-issued licenses that radio-type
services rely on for music are
decided every five years.
Recording Industry Association of America Chief Executive Cary Sherman called
Thursday’s decision “an important move in the right direction” but said “rates will
remain short of what music
creators actually deserve.”
“For more than a decade,
SiriusXM pocketed billions of
dollars on the backs of music
creators by paying below-market rates while the company
crowed about record profits
and boasted a market cap
about the size of the entire recorded music market,” said
Mr. Sherman in a statement.
Sirius didn’t respond to requests for comment.
Sirius currently pays 11% of
its revenue to SoundExchange
Inc., which collects digital performance royalties on behalf
of record companies and artists.
SoundExchange then distributes that payout to artists
and labels based on how often
their music is played. By law,
half goes to the copyright
owner—usually a record label—and half goes to the performer of a song.
SoundExchange had proposed the new rate for Sirius
either be more than doubled
to 23% of revenue or be $2.48
per subscriber a month in
2018 with moderate annual increases—whichever is greater.
Sirius, citing “market conditions over the past several
years,” proposed the rate be
“toward the lower end” of
8.1% to 11% of revenue, according to testimony.
Sirius had more than 32
million subscribers at the end
of the third quarter. About five
million of those get the service free as part of a promotion like those car companies
frequently offer. It reported $5
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
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
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VTV
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DBEF
ly
.
CHRIS RATCLIFFE/BLOOMBERG NEWS
BY ANNE STEELE
266.51
93.77
64.56
55.02
21.99
166.46
132.21
159.68
101.99
44.44
44.43
58.27
69.86
54.00
141.54
155.57
86.10
84.25
87.65
123.07
154.23
111.03
85.08
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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.
B10 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
BANKING & FINANCE
Young CEO Remakes 140-Year-Old Exchange
Matthew Chamberlain aims to grow a business anchored in the physical trading of metals
Activity Decline
Volumes on the LME fell from
2014 to 2016 and have been
roughly flat this year.
200 million lots
150
100
50
0
2012 ’13
’14
’15
’16
’17
Note: Projections for 2017 based on monthly
data through October
Source: London Metal Exchange
The LME is among the
last exchanges to operate an
“open outcry” trading pit, in
this case a circle of red sofas
known as “the ring.”
But the ranks of LME
dealers has fallen to nine
this year from 12 previously.
JPMorgan Chase & Co. is
among those that have exited, citing a client preference for lower-cost electronic trading and dealing in
futures markets, said a person familiar with its decision.
Mr. Chamberlain says he
is unfazed by these developments and says his greatest
task is to make it plain to his
many constituents that they
will all do better by sticking
together, while working toward compromise on their
many disparate interests.
“Neither side can survive
without the other,” he said
of the LME and its users,
which include mining companies such as Glencore, trading houses such as Trafigura
and brokers such as Sucden.
Large banks such as JPMorgan Chase also use the LME’s
reference prices for their
own private trades.
In a sign that Mr. Chamberlain wants to work with
members to address the
LME’s challenges, he met
with several brokers and exchange executives in August
DAVID VINTINER FOR THE WALL STREET JOURNAL
THE WALL STREET JOURNAL.
Mr. Chamberlain lowered trading fees and plans to introduce new products. He is expected to devise a long-term strategy.
to discuss potential changes
such as fee reductions before
they were officially announced, said Fred Demler,
former head of base metals
at INTL FCStone, who attended.
He was “plotting a path
between the traditionalists
and the modernizers,” Mr.
Demler said.
Still, skeptics wonder
whether the firm can grow
fast enough to please LME
owner Hong Kong Exchanges
& Clearing Ltd., which paid
$2.2 billion in 2012 for the
exchange, when the outlook
for commodities-trading
businesses perhaps seemed
brighter.
“The rate of return on
their investment has been
disappointing at best,” said
Albert Helmig, CEO of consultant Grey House and for-
mer vice chairman of the
New York Mercantile Exchange.
Even with base metals
prices surging this year,
LME volumes have been
roughly flat through October
from a year earlier. Trading
dropped 12% between 2014
and 2016. Some say tough
competitors in the U.S. and
China and plans for new fees
on the transactions that use
LME prices could derail the
exchange’s plans.
Some traders question
whether the exchange can
lure the hedge funds and
high-frequency trading firms
that constitute an increasing
share of volume in many
markets.
“[There aren’t] many
more banks and players getting into this, so where do
you think your growth is go-
ing to come from?” said Tai
Wong, head of metals trading at BMO Capital Markets.
Mr. Chamberlain hopes
that a more accessible electronic-contract structure can
address that challenge in the
future.
A native of Reading, England, Mr. Chamberlain studied computer science at
Cambridge University, before
starting his career as a
banker at Citigroup. His experience catering to clients
as a banker could help him
avoid missteps better than
past CEOs, some analysts
say.
He entered the metals
world by advising HKEX on
its acquisition of the LME
while at UBS. Restructuring
the LME’s warehouse system
when he joined in 2012 was
comparable to a “hazing rit-
ual,” he said, given metalwarehousing rules that were
associated with long delays,
massive costs and allegations that banks were manipulating prices. Members say
Mr. Chamberlain has helped
make the warehousing process more efficient.
Although he has reiterated
his commitment to the
LME’s physical metals traders, Mr. Chamberlain is convinced that the only way to
keep the exchange competitive is by carefully introducing changes after past mistakes.
“We have to be willing to
admit when we’ve got things
wrong,” he said. “You have
to not be scared to ask questions.”
—Alexander Osipovich
and David Hodari
contributed to this article.
ly
.
Eight months ago, Matthew Chamberlain became
the youngest chief executive
in the 140-year history of the
London Metal Exchange.
The appointment placed
the 35-year-old former UBS
Group AG banker at the center of the
WEEKEND global trade in
PROFILE
copper, tin and
aluminum, atop
an institution
that plays a powerful role in
setting metals prices—yet is
lagging behind more modern
rivals in electronic trading at
a time of stagnant trading
volumes.
Mr. Chamberlain has
righted some of the LME’s
missteps in recent years, say
people involved with the
firm. Trading volumes have
rebounded in recent months,
as the exchange has cut fees
on popular trades and rolled
out plans for new products
that cater to the surging interest in popular new technologies, such as metals
used in electric-car batteries.
He has reached out to manufacturers, traders and seat
owners who previously complained their interests were
being overlooked by LME
leaders.
Yet Mr. Chamberlain still
must devise a longer-term
growth strategy for a firm
whose main business remains anchored in physical
trading of metals, which has
become less popular among
LME’s bank customers in recent years and been hit hard
by a slump in prices and an
exodus of traders to other
exchanges.
“He knows he’s got a tall
order,” said Michael Overlander, CEO of Sucden Financial Limited, one of the
LME’s nine top members. He
thinks Mr. Chamberlain understands the needs and
wants of the market participants who are LME customers.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY AMRITH RAMKUMAR
Ex-Official Weighed
For CFTC Vacancy
nno
CAITLIN OCHS FOR WALL STREET JOURNAL
BY GABRIEL T. RUBIN
The GOP tax overhaul reduces breaks that many homeowners and workers in the New York region heavily lean on.
Tax Bill Called a ‘Dagger’ to New York
BY GREGORY ZUCKERMAN
AND JOSH BARBANEL
A
prospective
client
abruptly ended her hunt to
buy a three-bedroom apartment on Manhattan’s Upper
East Side last week, said broker Donna Olshan.
The reason: uncertainty
over how the latest Republican
tax plan would hit her family.
Like many New Yorkers, the
client was bracing for a blow,
under the latest tax bill under
consideration in Washington.
“The bill is an absolute dagger
in the heart of the real-estate
industry in New York,” said
Ms. Olshan, a broker who issues a weekly report on highend sales in the city.
House and Senate Republicans agreed on a framework
this week for a tax bill that
cuts corporate taxes and lowers rates for the wealthy. But it
also reduces breaks that many
in the New York region heavily
lean on, such as the deductibility of mortgage interest and
state and local tax deductions.
The final bill would allow a
deduction of up to $10,000 in
state and local taxes, an
amount that can include property taxes as well as income
taxes or sales taxes.
In Manhattan, deductions
for state and local income
taxes averaged more than
$57,400 while deductions for
property
taxes
averaged
$14,400, according to Internal
Revenue Service data from
2015.
Nearly one-third of New
York City taxpayers and nearly
half of all taxpayers in suburban
Long
Island
and
Westchester claim itemized
deductions for state and local
taxes, according to the Empire
Center, a nonpartisan, nonprofit think tank in Albany.
Limiting those state and local tax deductions, home
prices in Manhattan could fall
as much as 9.5%, according to
an analysis by Moody’s Corp.
“New York’s economy is a
loser under the plan,” said
Mark Zandi, chief economist
for Moody’s Analytics. He
added that local governments,
unable to raise taxes, might be
forced to cut back on services.
Already the specter of
change has caused a slowdown
in Manhattan sales in the past
few months, said Hall F. Willkie, co-president of New Yorkbased brokerage Brown Harris
Steven.
New York business leaders
expect few to uproot their
families just because of the tax
overhaul. But banks and other
companies seeking to shift
jobs to low-cost areas could
reconsider the city. Younger
workers may think more about
rival areas for a better quality
of life.
“The problem is the relative
attractiveness of New York,”
says Hamilton “Tony” James,
Blackstone Group LP’s president and chief operating officer. “Our relative labor costs
are rising at a time other cities
around the country have become more attractive to young
people and others.”
Kathryn Wylde, chief executive officer of the Partnership
for New York City, a business
organization that works with
government, labor and the
civic sector, says the prospective changes likely will cost
New Yorkers as much as $30
billion a year in additional tax
payments.
“This is a substantial tax increase for the middle class and
high earners who are salaried
workers,” she says. She estimates that top earners in the
city could pay as much as 57%
of their income in taxes, up
from 52%.
Some aspects of the tax bill
could be less devastating for
the city. The wealthiest would
see their top marginal tax
rates fall to 37% from 39.6%
while the corporate tax rate is
expected to be cut to 21% from
35%, aiding local businesses.
The mayor’s office argues
that the overall job situation
could be limited if companies
take advantage of lower tax
rates by investing in their
business.
Some wealthy New Yorkers
who already have second
homes other states may be
tempted to shift their residences to those low-tax locales, some analysts say. But
the New York area will likely
maintain its sway over others.
On Wednesday, as the Senate and House worked on completing the deal, a group of a
dozen or so wealthy New Yorkers met for lunch, part of a
monthly meeting to discuss investments and other issues.
When someone asked how
many of the attendees would
“finally leave New York” because of the tax bill, no one
raised a hand, says Howard
Gurvitch, a New York investor
at the meeting.
WASHINGTON—The White
House is considering nominating a former top Commodity
Futures Trading Commission
official to a Democratic vacancy, according to people familiar with the matter.
Dan Berkovitz, a partner at
law firm WilmerHale who was
the CFTC’s general counsel
during the Obama administration and played a key role in
the passage and implementation of the Dodd-Frank Act,
would fill the second Democratic slot at the CFTC, alongside Commissioner Russ Behnam.
The CFTC currently has just
three members and hasn’t had
a full five-member commission
since 2014.
Mr. Berkovitz’s role in implementation of the DoddFrank Act and his long career
in government, which included
senior roles working for Democrats in the Senate, is appealing to liberal Senate Democrats who hold sway over his
nomination, the people said.
Mr. Berkovitz declined to
comment.
The White House didn’t immediately respond to a re-
quest for comment.
If he is formally nominated
by the Trump administration,
Mr. Berkovitz would likely be
paired with Dawn Stump, the
nominee for the vacant Republican seat. Ms. Stump has already testified before the Senate Agriculture Committee but
hasn’t received a vote from
the Senate, given the tradition
of pairing Democratic and Republican nominees for bipartisan commissions.
Republican administrations
typically defer to Democratic
leadership in the Senate when
deciding how to fill Democratic regulatory vacancies.
While the CFTC has continued to function with three
members, which constitutes a
quorum, members of the commission are united in their desire to fill out their ranks.
Commissioners cannot meet
with one another one on one
when there are only three
members, because the meeting
would constitute a majority of
the commission and trigger
open-meeting laws.
Additionally, CFTC Chairman J. Christopher Giancarlo
has said he would prefer to
work on more significant rule
making with a full panel.
HNA Starts Buyback
BY ANJANI TRIVEDI
Chinese conglomerate HNA
Group Co. said it bought back
some of its bonds following
recent price declines, another
attempt to calm investors’
concerns about its liquidity
and financing pressures.
The privately held group
didn’t disclose how much it
spent on the purchases and
which bonds it bought, but
said that it planned to continue repurchasing its debt in
the open market.
One of HNA’s short-term
bonds issued in early November was quoted a day earlier
at about 91 cents on the dollar,
implying a yield of more than
20%, according to Thomson
Reuters. On Friday afternoon,
the bond was quoted at about
98 cents on the dollar to yield
about 12%, according to a
trader.
Earlier Friday, HNA executives held a conference call
with investors to discuss its
buyback plans and address
concerns about the group’s
ability to meet its obligations,
according to a person familiar
with the call.
HNA, an airlines-to-hotels
conglomerate, has previously
estimated it has more than
$100 billion in debt. Investor
worries about its finances
have grown in after yields on
some of its subsidiaries’ bonds
jumped and major credit-rating firms downgraded some of
its units’ creditworthiness, citing increasing risks.
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.
Saturday/Sunday, December 16 - 17, 2017 | B11
* * * * * * * *
MARKETS
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To advertise: 800-366-3975 or WSJ.com/classifieds
U.S. Stocks Notch New Records
BY CORRIE DRIEBUSCH
AND RIVA GOLD
The Dow Jones Industrial Average climbed to a fresh high as
investors bet that a tax-overhaul plan before Congress
would pass, likely boosting profits for many U.S. companies.
Stocks have risen and fallen
in recent weeks with the likelihood of the tax plan’s passage,
edging lower Thursday as some
Republican senators expressed
last-minute doubts about the
plan, before surging Friday after what appeared to be concessions to some dissenters.
Investor optimism over passage of a compromise plan
propelled gains in shares of
companies that are likely to
see particular benefit from
lower corporate tax rates, such
as smaller companies and financial firms.
The financial sector was
one of the biggest gainers in
the S&P 500 on Friday, rising
1%, while the Russell 2000 index of smaller companies
added 1.6%.
It is the latest fuel to a remarkable run of gains. On Friday, the Dow industrials rose
143.08 points, or 0.6%, to
24651.74, notching its 69th record close of the year, the
most since 1995, and putting
its year-to-date rise at 25%.
The S&P 500 advanced
23.80 points, or 0.9%, to
2675.81, while the Nasdaq
Composite Index climbed
80.06 points, or 1.2%, to
6936.58, both records.
“Investors celebrate the
idea that profits will rise as
companies have to pay less
out to the government in
taxes,” said Jason Ware, chief
investment officer at Albion
Financial Group.
Investors expect the tax
overhaul to add to what many
already project to be a strong
2018 for stocks as an expanding economy, strong earnings
and low interest rates continue to lift indexes higher.
Analysts are projecting
double-digit-percentage earnings growth each quarter of
2018, according to FactSet
data. They also expect solid
revenue growth for U.S. corporations. At the same time,
gross domestic product expanded at a 3.3% rate in the
third quarter, according to the
Commerce Department.
Hiring has also been consistent and the unemployment
rate has remained low.
The combination of rosy
economic and earnings projections and the likelihood of tax
overhaul has pushed some
AREA DEVELOPMENT
Higher Ground
The S&P 500 and Dow Jones Industrial Average climbed for a fourth
consecutive week, lifted on Friday by expectations that the
Republican tax-overhaul plan will pass.
2%
Dow Industrials
S&P 500
1
0
-1
M
T
W
T
F
THE WALL STREET JOURNAL.
Source: FactSet
economists to raise their yearend targets for the S&P 500 for
next year. Goldman Sachs
Group Inc. says the broad index
could reach 2850 by the end of
2018, while UBS Group AG has
put its year-end target at 2900.
One sign that troubles some
investors is that longer-term
bond yields remain low. While
low yields typically support
riskier assets such as stocks,
longer-term yields often rise
in periods of accelerating economic growth.
Funds raised through IPOs in 2017*
$50 billion
NYSE
$32.6 billion
17.8
Shanghai
15.5
Nasdaq
13.4
Hong Kong
10.1
London
Shenzhen†
10
0
2008 ’10
’12
’14
’16 ’17*
7.2
NSE India
5.8
São Paulo
5.8
Shenzhen
5.6
Bombay
5.5
*2017 data are
as of Dec. 14.
†ChiNext
THE WALL STREET JOURNAL.
Source: Dealogic
Meanwhile, biotech companies that have yet to generate
any revenue would be able to
list if their expected minimum
capitalization topped HK$1.5
billion.
“The market has made it
clear they want the exchange to
The yield on the 10-year
Treasury note settled Friday at
2.353%, below where it finished
last year, even as the Federal
Reserve has raised short-term
rates. But some analysts said
economic data have been solid,
and they don’t fear a quick rise
in interest rates would spook
investors. Inflation pressures
remain contained and the Fed
has signaled it would raise rates
three times next year to prevent higher prices from taking
root in the economy, they said.
take action to broaden Hong
Kong’s capital markets access
and enhance its competitiveness,” said exchange Chief Executive Charles Li. “By the second
half of next year, we hope that
we will see a significant number of innovative companies be-
n-
no
U.S. government bond
prices slipped Friday but
posted advances for the week,
supported by the latest run of
soft inflation data.
The yield on the 10-year
Treasury note settled at
2.353%, compared with 2.346%
Thursday and 2.383% last Friday. Yields rise as bond prices
fall.
Economic data showing inflation pressures remain
muted, as well as earlier uncertainty around
CREDIT
the passage of a
MARKETS Republican tax
o v e r h a u l ,
weighed on the
10-year yield throughout the
week.
While
some
concerns
around the viability of the tax
plan eased Friday, as lawmakers offered concessions they
hoped would persuade dissenting senators to support
the plan, bond investors appeared to be swayed more by
consumer-price data earlier in
the week, analysts said.
On Wednesday, the Labor
Department said that, excluding the volatile categories of
food and energy, consumer
prices rose just 0.1% in November from the previous
month, bucking economists’
expectations for a 0.2% increase.
The report, the latest to
suggest inflation pressures remain weak, kept pressure on
the 10-year note yield, even as
the Federal Reserve raised
short-term interest rates
Wednesday and signaled it remained on course for three
rate increases in 2018.
Bond investors have reckoned with a streak of soft inflation data throughout the
year that has left many questioning how aggressively the
Fed would be able to move
next year. That, plus continued
demand for Treasurys from
overseas buyers, has helped
keep bonds in a relatively narrow range, even as stocks have
rallied, investors and analysts
say.
Hopes for corporate tax
cuts were among the forces
that sent both U.S. stocks and
bond yields sharply higher
shortly after the 2016 presidential election. But moves in
longer-dated debt have been
more muted in recent months,
something some analysts have
attributed to investors already
having priced in the bill’s passage.
“Our read that tax reforms
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ginning to choose Hong Kong.”
Mr. Li this year said that its
proposed new listings rules
weren’t aimed at attracting
the Saudi Arabian Oil IPO.
Still, Mr. Li visited Saudi
Arabia this month, along with
Hong Kong’s chief executive,
Carrie Lam, and other officials
from the city’s financial sector.
They met the chairman of the
oil company, known as Saudi
Aramco, and other government
officials, according to a Hong
Kong government release. In
recent months Mr. Li has argued that Saudi Aramco should
list its shares in Hong Kong.
Saudi Arabia’s government
is deciding between New York,
Hong Kong, London and Tokyo, or a combination thereof,
for what is expected to be the
world’s biggest IPO ever.
Beyond Saudi Aramco,
other big potential IPOs next
year include Chinese smartphone maker Xiaomi Corp.
and Ant Financial Services
Group, an affiliate of Alibaba..
—Chuin-Wei Yap
contributed to this article.
are a lock at this point is consensus, which suggests that
we won’t see a meaningful
selloff in the Treasury market
when [President Donald]
Trump signs the final draft of
the bill,” Ian Lyngen, head of
U.S. rates strategy at BMO
Capital Markets, said in a
note.
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Initial public offerings on Hong Kong’s stock exchange raised $13.4
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Hong Kong’s stock exchange
said it would loosen the rules
for company listings, a move
that comes as global exchanges compete for Saudi
Arabian Oil Co.’s initial public
offering.
Hong Kong Exchanges &
Clearing Ltd.’s decision to allow companies with more than
one class of share to list also
comes three years after it
failed to land the IPO of Chinese tech company Alibaba
Group Holding Ltd., principally because its rules
wouldn’t allow the company to
offer shares that restrict voting power to a few investors.
The exchange’s new plan includes allowing companies to
list that don’t have a single class
of voting rights for all shareholders, as long as its expected
market cap tops 10 billion Hong
Kong dollars ($1.28 billion) and
it has generated at least HK$1
billion of revenue in the year before listing if the market cap is
below HK$40 billion.
Hong Kong Loosens Listing Rules
BY GREGOR STUART HUNTER
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THE WALL STREET JOURNAL.
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B12 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Scarce Dollars Drive Up Funding Costs
Three-month euro-dollar cross-currency basis swap rate
0 percentage points
–0.2
–0.4
–0.6
MORE
EXPENSIVE
DOLLAR
COSTS
–0.8
–1.0
–1.2
2015
’16
’17
Three-month German bond yields
Outstanding global debt by currency
$12 trillion
6%
5
10
Domestic currency*
U.S dollar
4
8
3
2
6
1
4
0
2
–1
0
–2
1999 2000
’05
’10
’15
1970
’80
’90
2000
Note: Bond yields fall as prices rise. *Domestic currency includes U.S. debt issued in dollars
Source: Thomson Reuters (swap rate, yields); Bank for International Settlements (debt)
mists say, as it generally was
before the financial crisis.
HSBC Holdings PLC named
a scarcity of U.S. dollars overseas as one of their top 10
risks for the new year.
“Cross-currency
basis
swaps have already widened,
but these swaps could go
much deeper into negative territory if the dollar-funding
squeeze becomes a structural
issue next year,” said HSBC
analysts this week.
The scarcity reminds investors that they operate in a financial world dominated by
one currency.
That domination only increased after the global financial crisis in 2008, when new
banking rules made U.S. banks
less willing to expand their
balance sheets and extend
’10
THE WALL STREET JOURNAL.
funding in currency swap markets, especially in December.
Commercial banks in Japan,
Germany, France and the U.K.
now have more dollar-denominated liabilities than those in
their own currencies, according to data from the Bank for
International Settlements.
Even the year-end squeeze
can have negative consequences for the firms that are
active in the market. Late in
2016, during the last signs of
strain in the market, Société
Générale SA recorded its
worst trading day of the year,
which it attributed to the sudden shift in the market.
“My first take on this a
week or two ago was that a lot
of the stress was just people
preparing for the end of the
year earlier,” said Lyn Gra-
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Gauging the Value of a Tax Cut
Rare Air
S&P 500 forward price/earnings ratio
20
18
n-
16
14
12
10
no
Businesses stand to get a
profit windfall from the Republican tax bill, but after
this year’s stock market
rally, the gains won’t make
their shares look cheap.
Stocks have risen sharply
this year, and valuations
have become stretched as a
result.
After climbing 19%, the
S&P 500 now trades at 18.4
times expected earnings versus a forward price/earnings
ratio of 16.8 at the outset of
the year, according to FactSet.
That is the richest it has
been in 15 years. The cyclically adjusted P/E ratio popularized by economist Robert Shiller stands at 32.3, a
level only exceeded just before the 1929 crash and during the dot-com bubble.
But this year’s stock market gains have been based in
part on an expectation that
congressional Republicans
and President Donald Trump
would pass a significant corporate tax cut.
With House and Senate
Republicans on Friday releasing the final version of
8
2005 ’06
’07
’08
’09
’10
Source: FactSet
the tax bill, passage appears
certain.
The question now is how
much of the profit windfall
has already been priced into
the market.
In a preliminary analysis
of the tax plan’s effect, based
on the tax plans the House
and Senate separately passed
last month, Goldman Sachs
Group strategists found that
S&P 500 profits would get a
5% boost. The final tax plan
doesn’t appear quite so gen-
’11
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
erous—the corporate tax
rate is set at 21% rather than
the 20% congressional Republicans initially aimed
for—but a ballpark figure of
5% still seems reasonable.
While investors have
priced in at least some portion of a tax cut into stocks,
analysts don’t appear to
have incorporated the profit
gains into their estimates for
2018 earnings. A 5% boost in
earnings would lower the
forward P/E ratio to 17.6,
making the market slightly
cheaper than it is today.
(The forward P/E includes
this year’s fourth quarter,
which will be unaffected by
the tax cut.) That is still
above where it was at the
start of the year, when
stocks were already looking
expensive.
Make the same 5% adjustment to Mr. Shiller’s measure, and it falls to 30.8, still
lagging behind only the period before the 1929 crash
and during the dot-com bubble.
Of course, it is possible
that the tax plan boosts economic growth, which would
add more oomph to earnings
than is readily apparent.
As for Mr. Shiller’s measure, it may be elevated, in
part, for technical reasons,
making stocks appear somewhat more expensive than
they actually are.
Still, stocks are finishing
the year with steep valuations. The only way the market can go higher in 2018
will be if earnings surge or if
valuations go steeper still.
—Justin Lahart
OVERHEARD
When Ivanka Trump
launched her eponymous
fashion company in 2007, she
leaned on her family name as
a signal of wealth and extravagance. Since her dad became
president, though, the appeal
has faded for some consumers.
Nordstrom and Neiman
Marcus dropped the line in
February. According to Lyst, a
fashion search platform, sales
for November were down
34% from the same month
last year. Shoppers are now
most likely to find it at
Macy’s and Wal-Mart, heavily
discounted.
The company is trying to
retake some control. On
Thursday, it opened the doors
to its first stand-alone boutique, located in Trump Tower.
No doubt rent was the right
price. Will New Yorkers patronize it? “It’s not going to
happen,” chuckles Anthony
Chukumba, a retail analyst at
Loop Capital. “There is no
scenario in my mind where
her store is successful, unless
she opens it in a strip mall in
Alabama.”
Railroad CSX Has Punched a First-Class Ticket to Chaos
Even if Hunter Harrison
wasn’t struggling with
health problems, the value
that investors put on his
ability to turn around CSX
was overly optimistic. Now,
it looks irrational.
Despite his reassurances
earlier this year, the 73-yearold’s medical issues seem to
have caught up with him,
forcing a leave of absence
from the railroad. Investors
have been willing to attach
some truly gaudy numbers
to Mr. Harrison.
Back in January, when
word first emerged that activist hedge fund Mantle
Ridge might lure away Mr.
Harrison from Canadian National Railway to run CSX,
Golden Spike
Share-price performance, railroads
CSX
Canadian National
Norfolk Southern
Union Pacific
$150
125
100
75
2017
Source: FactSet
the sort of euphoric response rarely seen in relatively dull railroad stocks
took hold, a one-day $8 billion gain in CSX’s market
value. Months later, shareholders agreed to an unprec-
edented $84 million payment
to Mantle Ridge for luring
him away. CSX agreed to pay
Mr. Harrison as much as
$300 million over the course
of his contract if he met all
of his targets.
That is looking iffy following Friday’s announcement,
and CSX’s shares promptly
lost $4 billion in market
value on Friday. Since May
17, when The Wall Street
Journal reported on concerns over Mr. Harrison’s
health, the share prices of
three North American competitors have outperformed
CSX by 12 percentage points.
“Don’t judge me by my
medical record, judge me by
my performance,” Mr. Harri-
son said in an interview with
the Journal at the time.
The market may be doing
just that. While Mr. Harrison’s “Precision Scheduled
Railroading” yielded significant improvements at three
smaller railroads where he
previously worked, the surge
in CSX’s value was unrealistic for two reasons. One is
that it wasn’t all that inefficient based on its operating
ratio versus peers. The other
is that the nature of its
sprawling 21,000-mile network made Mr. Harrison’s
changes less effective and
more disruptive.
Big delays led the Surface
Transportation Board to contact the company this sum-
ham-Taylor, senior rates strategist at Rabobank. “But now
it does look pretty bad.”
The scarcity is having other
effects, boosting some markets.
The widening of the basis
swap makes it more lucrative
for any U.S. investors who can
expand their balance sheets to
buy euro-denominated assets,
given that banks are so eager
to get their hands on dollars.
As a result, the eurozone’s safest short-dated bonds have
rallied in recent weeks.
Yields on Germany’s threemonth government debt fell to
as little as minus 0.96% this
week, the lowest on record,
according to FactSet. Bond
yields fall as prices rise.
Several factors could continue to make dollar swaps expensive for European investors, according to analysts.
The final U.S. tax-overhaul
bill could encourage repatriation of U.S. companies’ overseas dollar investments to the
U.S., removing a source of
funding for Europe.
Likewise, the Fed’s balancesheet shrinkage reduces the
pool of reserves that have lubricated
foreign-exchange
markets since the financial
crisis.
“It’s a persistent issue
that’s the result of the supply
and demand for dollars,” said
Alessio de Longis, portfolio
manager
at
OppenheimerFunds. “If as a result of tax
reform you see that repatriation of dollars on the part of
large multinationals, it would
remove even more from those
international markets.”
Emerging markets are even
more exposed to the U.S. dollar than advanced economies
like the eurozone.
Research published by the
Bank of England on Friday
noted that more international
bank lending to emergingmarket firms, excluding banks,
is done in dollars than all the
other currencies of the world
combined.
ly
.
The cost of derivatives that
allow global investors to access U.S. dollars has rocketed
this past week, with some
reaching their steepest levels
since the worst days of the eurozone sovereign-debt crisis.
A scarcity of dollars makes
them more expensive to borrow, hurting non-U.S. banks
and making a crucial form of
credit harder to come by.
Rules designed to make finance safer have already made
dollars scarcer, and the Federal Reserve is sucking dollars out of the financial system as it rolls back its
monetary stimulus. Changes in
U.S. tax law may compound
the shortage.
The three-month euro-dollar cross-currency basis, in
which negative numbers denote higher dollar funding
costs, dropped to minus 1.1
percentage points Friday, having been at minus 0.27 percentage point in mid-September.
The basis tends to widen
toward the end of the year as
banks adjust dollar-denominated liabilities and assets on
their balance sheets.
But many analysts are flagging the potential for continued strains on funding in the
new year.
Though the move in the European market was most extreme, British and Japanese
investors felt the squeeze, too.
The sterling and yen threemonth cross-currency bases
fell to minus 0.77 percentage
point and 0.8 point, respectively.
The euro basis swap has
only been this low during periods of extreme stress. It broke
below minus 1.5 percentage
points in late 2008 during the
financial crisis and again in
late 2011 during the sovereigndebt crisis.
Were greenbacks freely borrowed and lent, the spread
would be about zero, econo-
The size of the overseas dollar-debt market has risen since 2008, driving up the
price of greenback funding abroad and reducing yields on some European bonds.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY MIKE BIRD
mer over what it called
widespread degradation of
service. A listening session
held by the transportation
board in October to address
customer gripes was even
more cause for alarm. Mr.
Harrison looked haggard
based on photos from the
event and was hooked up to
an oxygen tank, and he gave
some rambling responses.
Since May, analyst expectations for 2018 earnings per
share at CSX’s two main
listed U.S. competitors,
Union Pacific and Norfolk
Southern, have risen slightly
while they have dropped for
CSX. Shareholders can be
forgiven for letting off some
steam.
—Spencer Jakab
WSJ.com/Heard
Adobe Is
Keeping
Clouds Away
When it comes to software, investors sometimes
get what they are willing to
pay for.
Adobe Systems has never
been a cheap stock to own. It
has averaged about 32 times
forward earnings over the
past five years, compared
with an average of 18 times
for the S&P 500 software
and services group. The
stock trades around that
level now, after having
gained about 70% this year
as investors embraced the
company’s transition to a
cloud-based, subscription
business model, which has
boosted both revenue and
operating earnings.
Adobe’s fiscal fourth-quarter results posted Thursday
suggest the steam hasn’t run
out on that shift. Revenue
jumped 25% year over year
and exceeded the $2 billion
mark for the first time.
Adobe maintained a previous
forecast for growth next
year of 20%.
With 84% of its revenue
now coming from subscriptions, Adobe is showing that
strong growth is still possible at what might seem the
tail end of its transition.
But Adobe and its peers
may still face a higher bar
heading into the new year.
The 10 largest cloud software stocks are up 68% this
year, more than double the
Nasdaq Composite Index’s
gain. J.P. Morgan’s software
analysts downgraded 19
stocks, including Adobe, this
past week, citing the belief
that a repeat performance
for the sector will be difficult for the coming year.
The company’s solid performance to date has rightfully made it one of the
brightest spots in the cloud
sector. That should give
some protection when the
rains come. —Dan Gallagher
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.
A challenge for
AI: Can a robot
distinguish
between a turtle
and a rifle?
Mysteries,
children’s books,
biographies and
more: the best
books of 2017
C3
C5-C16
BOOKS
|
CULTURE
|
SCIENCE
© 2017 Dow Jones & Company. All Rights Reserved.
|
COMMERCE
|
HUMOR
|
POLITICS
|
LANGUAGE
THE WALL STREET JOURNAL.
* * * *
|
TECHNOLOGY
|
ART
|
IDEAS
Saturday/Sunday, December 16 - 17, 2017 | C1
ILLUSTRATION BY PEP MONTSERRAT
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
Mr. Trump’s
Traffic Problem
The president is right to stress reciprocity in trade. His mistake is to focus
on the imbalances between countries rather than on the rules of market access.
P
BY DOUGLAS A. IRWIN
Multilateral agreements
are the best way to
secure fair terms for
American goods.
no
n-
resident Donald Trump has often been accused of being a
protectionist. During the election campaign, he called for
high tariffs on imports from
China and Mexico, and in his inaugural address he said that,
when it comes to trade, “protection will lead to great
strength and prosperity.”
But the president doesn’t consider himself a protectionist. “I’m absolutely a free-trader. I’m for open
trade, free trade, but I also want smart trade and
fair trade,” he recently said. His aim is to replace existing trade deals, which he considers “a disaster”
and “one-sided,” and adopt a new approach. As he
told leaders in the Asia Pacific region at a November
summit, trade arrangements should be based on
“fairness and reciprocity.”
In setting out this principle, Mr. Trump joins a
long line of American presidents who have endorsed
fair trade and reciprocity. But there is a problem
with how he frames the issue. Mr. Trump wants to
achieve reciprocity not in the rules of the game but
in a particular outcome: the balance of trade with
individual countries. This is no way for the U.S.—
and the world—to prosper.
Economists since Adam Smith have argued that
the trade balance, particularly any bilateral surplus or
deficit, is not the right measure of trade’s benefits. A
trade deficit may sound alarming, but it has no significance by itself. What does matter is reciprocity in
market access, and this is best achieved in regional
and multilateral agreements. By abandoning or undermining these deals, the Trump administration has
abdicated U.S. leadership. Even bilateral agreements,
which Mr. Trump touts, may now be out of reach, because other countries are justifiably reluctant to negotiate about outcomes rather than rules.
America’s desire for reciprocity in trade goes
back to the country’s quest for independence.
Among the many grievances cited in the Declaration
of Independence was the complaint that Britain was
“cutting off our trade with all parts of the world”
through its mercantilist regulations.
When the U.S. achieved its independence, the
country was hopeful that its new standing would
usher in an era of free trade. But Britain took a hard
line, arguing that the U.S. could not leave the British
Empire politically and yet remain a part of it economically.
In 1793, Secretary of State Thomas Jefferson issued a “Report on Commercial Restrictions” that extolled the idea of free trade but documented the numerous barriers placed on American goods and
ships in foreign markets. He proposed achieving reciprocity through a policy of retaliation: “Where a nation imposed high duties on our productions, or prohibits them altogether, it may be proper for us to do
the same by theirs.” But the U.S. was too minor an
economic power to make good on such threats and,
rather than risk a trade war, opted instead for an
imperfect agreement with Britain.
For most of the next century, the U.S. abandoned
the quest for reciprocity. Congress set high tariff
rates without regard to the rules set by other countries. By the 1890s, however, new developments
prompted some to reconsider the wisdom of protectionism. The U.S. had become a net exporter of manufactured goods, and discriminatory trade policies
abroad were impeding access to foreign markets.
The prime mover behind a renewed interest in
reciprocity was President William McKinley. Speaking at the Pan American Exposition in Buffalo on
Sept. 5, 1901, he declared that economic “isolation
is no longer possible or desirable.” “The period of
exclusiveness is past,” he said. “Reciprocity treaties
are in harmony with the spirit of the times, measures of retaliation are not.”
We will never know if President McKinley could
have been successful in concluding such treaties because, just a day after delivering this address, he
was shot and killed by an assassin. His successor,
Theodore Roosevelt, was a passionate progressive
reformer in many areas but not when it came to
trade. Having repeatedly stated that the tariff
“should be decided solely on grounds of expediency,”
he found it expedient to do nothing.
The last gasp of protectionism came with the infamous Smoot-Hawley tariff increase in 1930. Focused solely on the interests of select domestic producers, Congress gave little heed to foreign protests
that came pouring in, let alone to the concerns of
U.S. exporters or consumers. Congress ignored
warnings of possible foreign retaliation, and the international backlash dealt a swift and devastating
Please turn to the next page
Mr. Irwin is the John French Professor of
Economics at Dartmouth College. This essay is
adapted from his new book, “Clashing Over
Commerce: A History of U.S. Trade Policy,”
published by the University of Chicago Press.
INSIDE
MIND & MATTER
Why not spank children for
misbehavior? It seems to cause
more of it, says a new study.
C2
WEEKEND CONFIDENTIAL
Shoe designer Steve Madden
steps up to a new documentary
about his life.
C18
ESSAY
From hockey rinks to
housing to green spaces:
Empty malls get a second life.
C3
ESSAY
Arab liberals have been given
a new voice in media by rulers
eager to combat extremists.
C4
BOOKS
A new volume of Sylvia Plath’s
letters is packed with
revelations big and small.
C7
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.
C2 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
REVIEW
Fair Rules, Not Equal Trade
ly
.
FROM LEFT: JT VINTAGE/EVERETT COLLECTION; HULTON ARCHIVE/GETTY IMAGES
ALEX WONG/GETTY IMAGES
no
n-
MOST CHILDREN under 7 can
neither master their emotions
nor reason like adults, so
power struggles with them are
inevitable. Who gets to control
the TV remote or the smartphone? Does junior resist taking a bath, wander around after bedtime, gleefully use curse
words or pound on his siblings every chance
he gets?
The answer to at least some of these
questions must be yes, if the child is a growing human being and not a robot. Experimenting with autonomy and observing how
his parents react is part of the job of a child.
Setting age-appropriate boundaries is the
role of the adult.
The dynamics become even more complex
when a child is defiant or impulsive by nature, when a parent is under inordinate pressure, or all of the above. That is perhaps one
reason why two-thirds of American parents,
when asked by the federally funded General
Social Survey in 2016, agreed with the statement, “Sometimes a child just needs a good,
hard spanking.” (The number has dropped by
about 15 points in the past three decades.)
A host of studies link spanking to later behavior problems. A 2016 meta-analysis of
five decades of research on the topic suggests that spanking a young child is not only
an ineffective form of discipline but a catalyst for more serious acting out and mental
health problems in the future. Indeed, corporal punishment of children is now illegal in
53 countries, and banning any kind of hitting
of children—with a hand or an object—is a
growing international movement.
Whether striking a preschooler’s bottom
with an open hand discourages or exacerbates misbehavior remains a controversial
topic in the U.S. Adding grist to the debate:
The studies that have been conducted are
observational—that is, they show that spanking and future behavior problems are tightly
linked but not that the former definitively
causes the latter. Children can’t be randomly
assigned, for experimental purposes, to
spanked and not
spanked groups, so it’s
hard to discern
whether later behavior
problems can be attributed to that one factor.
A new study led by
Elizabeth Gershoff, a
professor of human development at the University of Texas at
Austin, aims to settle
this dispute. Published last month in the
journal Psychological Science, the study statistically controlled for children’s initial behavior problems and the characteristics of
their parents. More than 12,000 American
families were surveyed, from their children’s
kindergarten year through eighth grade, as
part of the nationally representative Early
Childhood Longitudinal Study.
The researchers paired subjects who had
and had not been spanked at 5 years old but
were equivalent on 38 other factors. Those
included the child’s initial level of behavior
problems as rated by the teacher, and the
parents’ marital status, mental health, stress
levels and parenting style as defined by their
answers to interview questions.
The researchers found that a child who
was spanked at age 5 was far more likely to
have behavior problems at age 6, and more
serious ones again at age 8, according to
teachers’ ratings. The relationship between
corporal punishment and later acting out
was even stronger if parents said that they
had spanked the 5-year-olds the week before
the survey, an indication that spanking may
have been relatively frequent.
“This is the closest we can get, outside of
an experiment, to say that spanking causes
negative changes in children’s behavior. I
can’t think of another way to explain our results,” Ms. Gershoff told me.
The American Pediatric Society advises
parents to avoid spanking, and the American Psychological Association cautions
against the practice. American parents seem
to be left with a choice: To use a form of
physical discipline that gambles with the future of their children or to find other ways
to help them learn self-control.
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Spanking for
Misbehavior? It
Causes More
TOMASZ WALENTA
though neither the U.S. nor other countries significantly
changed their policies regarding imports.
Just last week, the Commerce Department reported that the
trade deficit had widened slightly. This is because the economy
is doing well and the unemployment rate has fallen to almost 4%.
We should not wish for another economic slowdown to put a further dent in the trade deficit.
In some circumstances, it may make sense to care about the
overall balance of trade. If the trade deficit is viewed as a problem, the solution is for the U.S. to save more and spend less, like
countries with trade surpluses, such as China,
Germany and Japan. One component of America’s poor savings record is the federal budget
deficit: When it grows as a share of GDP (due
to a decline in revenues or an increase in expenditures), it contributes to the trade deficit.
But it makes no sense to care about balancing trade bilaterally with individual countries.
A household may care about whether its overall spending exceeds its income, but it doesn’t
care about balancing each component in its
budget. Everyone runs a trade surplus with his or her employer.
Everyone runs a trade deficit with the grocery store, except for
the people who work there. It is nonsensical to balance your
checkbook bilaterally; just try doing that with Amazon or Costco.
The problem with negotiating about outcomes rather than
rules, focusing on the trade balance rather than on market access,
is that it can lead to managed trade. That happened in the 1980s,
when the U.S. was worried about the trade deficit with Japan.
Managed trade is the opposite of the goal of establishing freer
and fairer trade around the world.
President Trump has complained about supposedly unfair trade
deals with Japan, Mexico and Canada without ever really saying
what they have done wrong—aside from the imbalance in our bilateral trade with them. With Canada, the U.S. does indeed have a trade
deficit in goods, but it has an even larger trade surplus in services.
Is this “very unfair” to Canada? Are we “taking advantage” of our
longtime ally? What would Mr. Trump say if Canada said that we are
obligated to intervene to reduce our surplus?
The fixation on outcomes rather than on rules has distorted the
U.S. negotiating position. The
Trump administration’s aggressive
“win-lose” rhetoric not only puts
other countries on the defensive
but also baffles them, because the
trade balance is not something that
governments directly control. Emphasizing deficits and surpluses
has made our trading partners less
willing to negotiate and to make
concessions on issues of market access. And Mr. Trump’s precipitous
decision to pull out of the TPP and
his threats to withdraw from Nafta
mean that the U.S. is now viewed
as an unreliable partner.
The administration has even criticized Mexico and Canada’s other
trade deals. Commerce Secretary
Wilbur Ross complains that cars assembled in Mexico receive better
treatment in the EU than those produced in the U.S. The reason is simple: Mexico has a free-trade agreement with the EU, and the U.S. does
PRESIDENT MCKINLEY sought reciprocity in tariffs, but President Roosevelt would have none of it.
not. Canada also just recently concluded a comprehensive trade
them is in the tradition of past presidents.
agreement with the EU. Both countries now have a leg up over the
One place, for example, where the administration is on firm
U.S. in exporting to the EU. The remedy is not to berate the EU for
ground in complaining about foreign trade policies is China.
treating the U.S. unfairly but to conclude a trade agreement with the
China’s blatantly mercantilist “Made in China 2025” policy, inEU as other countries have.
volving local content requirements and the elimination of foreign
In withdrawing from the Trans-Pacific Partnership, the Trump
suppliers, is the antithesis of an open market economy. But thus
administration promised instead to conclude many bilateral
far, the administration has given China a pass, with the president
agreements in Asia. But after seeing how the U.S. has treated its
saying that he “doesn’t blame” China for its trade practices.
Nafta trading partners, other countries have not been eager to
What is new and unusual is the administration’s focus on the
sign up for talks. Japan has already demurred, even though just
trade balance with individual countries. We do in fact have a
last week Tokyo was able to reach a major trade deal with the EU.
trade deficit with Mexico, for instance, but the rules of Nafta still
The administration professes to want bilateral agreements, but
hold: Mexico does not impose any duties on U.S. goods just as we
it will not get them if other countries are reluctant to negotiate.
do not impose any duties on Mexican goods. The same would
As a result, the rest of the world will move on and continue to
have been true under the Trans-Pacific Partnership, from which
reach trade agreements that exclude the U.S. The 11 nations of
the Trump administration withdrew U.S. support.
the TPP have already gone ahead to conclude the agreement
The focus on the trade balance in trade negotiations is miswithout the U.S. That will subject U.S. exporters to discrimination
guided. Trade is not like a ledger, where imports are the cost and
in other markets. Japanese cars will receive tariff concessions in
exports are the benefit, and trade surpluses and deficits do not
Vietnam, Australian beef will be treated better than American
indicate that one country is “winning” and the other “losing.”
beef in Japan, and so forth.
The trade deficit is driven by macroeconomic factors, not by
And therein, perhaps, lies the silver lining. The more the U.S.
trade barriers or trade agreements. The U.S. faced a battery of
stands apart from these trade negotiations, the more U.S. exporthigh trade barriers in the 1950s, when its own market was
ers will face discrimination in foreign markets. President Trump
largely open, and yet it ran trade surpluses. The trade deficit
or his successor will eventually have to play catch up to restore
fell sharply in the wake of the financial crisis in 2008, even
the equal access that American businesses will demand.
Other countries
are baffled by
Trump’s fixation
on trade balances.
MIND & MATTER:
SUSAN PINKER
A big new
study
finds a
clear
negative
effect.
Continued from the prior page
blow to American exports.
The shift toward reciprocity finally came with the election of
Franklin D. Roosevelt and his appointment of Cordell Hull as Secretary of State. Hull believed that trade friction between countries
bred political friction and conflict, such as World War I. He helped
to convince Congress to pass the Reciprocal Trade Agreements
Act of 1934, which gave the president the authority to reduce tariffs in trade agreements with other countries. His main goal was
to eliminate foreign discrimination against U.S. exports.
Hull’s efforts eventually led, after World
War II, to the General Agreement on Tariffs
and Trade, the cornerstone of which was reciprocity among members in the rules of the
game. While the GATT didn’t equalize tariff
treatment of goods in all markets, it began to
chip away at the discriminatory policies targeted at American exporters.
The U.S. also promoted the formation of
the European Economic Community, a precursor of the European Union, in order to
strengthen the continent’s economies and to make them a more
effective bulwark against communism. The EEC removed taxes on
trade between members and set a common external tariff. The
U.S. worried that this tariff, and the preference for intra-European trade, would be prejudicial to American commerce, so
Washington initiated negotiations to reduce the new barriers, resulting in revisions to GATT in 1967.
The U.S. took the lead again a few decades later in pushing
other countries to reduce their tariff walls and subsidies, achieving yet another updating of GATT in 1993. This round of changes
established the World Trade Organization to protect intellectual
property rights and to settle disputes.
The pattern across these historical episodes is clear: The U.S.
has been active in promoting free trade when it begins to face
discrimination against its commerce abroad. Trade negotiations
have been a tool for safeguarding American interests.
Enter now Donald Trump. Much of what the administration is
doing on trade is not new. To the extent that it has identified
specific policies or practices that violate trade rules, addressing
IS IT ‘VERY UNFAIR’ of the U.S. to have a trade surplus in services with Canada? Are we ‘taking advantage’ of our long-time ally?
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.
Saturday/Sunday, December 16 - 17, 2017 | C3
* * * *
AUTODESK
REVIEW
ROBOT TRAINERS at an Autodesk research laboratory in San Francisco use virtual reality to teach an artificial intelligence program for robots how to move boxes under varying conditions.
In a lab, each move is programmed, but in the real world,
artificial intelligence must adapt to endless variety.
planned $65-million, four-year program dubbed
Lifelong Learning Machines to develop AI systems that can handle new challenges without
additional training, according to program manager Hava Seigelmann. When conditions
change, she said, “We need something that
works right away.”
Firms including Alphabet’s
Google, Autodesk, OpenAI, plus
a cadre of startups and academics, are testing techniques that
they think could help AI systems and AI-powered robots
become more flexible. Google’s
DeepMind subsidiary used a
technique known as reinforcement learning to build software that has repeatedly beat the best human players in Go.
While learning the classic Chinese game, the
machine got positive feedback for making
moves that increased the area it walled off
from its competitor. Its quest for a higher
score spurred the AI to develop territory-taking tactics until it mastered the game.
The problem is that “the real world doesn’t
have a score,” said Brown University roboticist
Stefanie Tellex. Engineers need to code into AI
programs so-called “reward functions”—mathematical ways of telling a machine it has acted
no
n-
ly
.
DURING a 2016 experiment at Google in
Mountain View, Calif., researchers gave a robot
the task of lifting a pink stapler. The colorful
items it had seen previously were soft baby
clothes, so the machine figured that the stapler also “had to be soft,” said Sergey Levine,
the scientist who led the work. But the pinching strategy it had used previously didn’t work
in this case. The robot was foiled by the unexpected scenario.
In a factory, a robot’s movements are precisely choreographed. Engineers must reprogram the machine for any change to its routine.
As automated systems become more commonplace in businesses and homes and on our
roads, researchers are trying to make them
more adaptive and responsive. To function well
outside controlled settings, robots must be able
to approximate such human capacities as social
intelligence and hand-eye coordination. But
how to distill them into code?
“It turns out those things are really hard,”
said Cynthia Breazeal, a roboticist at the Massachusetts Institute of Technology’s Media
Lab. Researchers are experimenting with artificial intelligence to see how much they can
upgrade robot capacities, said Dr. Breazeal,
who is also the founder of the social-robotics
startup Jibo Inc.
Even today’s state-of-the-art AI has serious
practical limits. In a recent paper, for example,
researchers at MIT described how their AI
software misidentified a 3-D printed turtle as
a rifle after the team subtly altered the coloring and lighting for the reptile. The experiment showed the ease of fooling AI and raised
safety concerns over its use in real-world applications such as self-driving cars and facialrecognition software.
Current systems also aren’t great at applying
what they have learned to new situations. A recent paper by the AI startup Vicarious showed
that a proficient Atari-playing AI lost its prowess when researchers moved around familiar
features of the game. The Defense Advanced
Research Projects Agency—the U.S. Department
of Defense’s R&D arm—recently launched a
good way of picking up screwdrivers and would
ignore the hammer completely,” he said. By leveraging all of a machine’s previous experiences, even mistakes, HER is intended to reduce
a major challenge of reinforcement learning:
the time and data it takes to train a system.
For teaching physical actions, researchers
rely on simulators and virtual reality. One reason is safety: During training in a simulator at
OpenAI, a robot started knocking blocks forcefully across the room as it was learning how to
place them in a certain location. The “sensible
thing” to do is to pick up the object and take it
there, said Lerrel Pinto, a robot trainer who interned at OpenAI this summer. “Another solution is to hit the block hard enough that it flies
and reaches that point,” he said. But “in the
real world, we do not really want…that.”
In simulations, researchers can also change
environmental properties such as color, lighting, texture and friction, so that robot AIs can
face a wider range of situations. The more
varied the environments a program encounters, the better it can generalize from its past
experience. That, in turn, should help it work
well in a machine meant to interact with the
physical world. When the OpenAI researchers
challenged a machine to slide a puck placed
on a bag of potato chips—a condition it
hadn’t experienced during previous training—
it succeeded because it could generalize from
other variations.
If a robot needs thousands of examples to
learn, “it’s not clear that’s particularly useful,”
said Ingmar Posner, the deputy director of the
Oxford Robotics Institute in the U.K. “You want
that machine to pick up pretty quickly what it’s
meant to do.”
Researchers are trying to get systems to understand relationships between tasks that require similar skills. For instance, learning to
pick up a block might require the same skills as
picking up a box or a book. Experience with all
of these objects might then help a robots to
link together enough tasks to clean up a room.
Figuring out the “recipe” for more complex
actions, like making coffee or playing the piano,
is still an active area of research, Dr. Posner
said. “Finding out what those relationship are,”
he added, “that’s a pretty important next step.”
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Learn to
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BY DANIELA HERNANDEZ
correctly. Beyond the finite scenario of a game,
amid the complexity of real-life interactions,
it’s difficult to determine what results to reinforce. How, and how often, should engineers reward machines to guide them to perform a certain task? “The reward signal is so important to
making these algorithms work,”
Dr. Tellex added.
A paper published this summer by researchers at OpenAI
described a reinforcement
learning-based algorithm that
helps robots to complete simple
tasks, such as stacking blocks
or pushing objects across a table. The system, dubbed Hindsight Experience Replay (HER), records and
“relives” robot experiences multiple times in a
virtual world. It allows a machine to turn blunders into learning opportunities, according to
Marcin Andrychowicz, one of the scientists
who developed it.
If a robot aims to pick up a screwdriver but
instead latches onto a hammer, the program
doesn’t count that as a failure, he says. Instead,
it analyzes the experience to teach itself how to
pick up hammers—in the same way that humans learn from mistakes. “Without HER, the
robot would just learn that what it did is not a
A pink
stapler
poses a
challenge.
A RETROFIT FOR AMERICA’S DYING MALLS
BY RICHARD FLORIDA
AND ELLEN DUNHAM-JONES
AFTER HICKORY HOLLOW MALL in
Antioch, Tenn., closed in 2011, it became the home of a new satellite
campus of Nashville State Community College and a practice rink for
Nashville’s professional hockey team.
It still has stores, including an ethnic
market filled with small immigrant
businesses, but on a
much smaller scale
than before.
In East Austin, Texas,
the abandoned Highland
Mall was taken over in
recent years by Austin
Community
College,
which opened a state-ofthe-art lab for teaching
math on the second floor of the old
J.C. Penney and is building housing
for students and others on the old
parking lots. With a new light rail
stop, the development has also become a magnet for local employers.
As the Christmas shopping season
reminds us, the traditional retail sector is undergoing profound change.
While Amazon and its e-commerce rivals vie for ever-larger shares of the
market, retailers such as RadioShack,
The Limited, Payless and Toys ‘R’ Us
have gone bankrupt. By 2022, according to an analysis by Credit Suisse,
one of every four U.S. shopping malls
may close. Just this week, Westfield
Corp., which operates some of the
country’s glitziest malls, announced it
was getting out of the business.
The so-called “retail apocalypse”
is hardly universal. Overall, the sector is still growing at a healthy rate
of 3% a year. But the shift in retail
has been especially hard on many
suburbs and rural areas. Dying malls and
shopping centers have
meant job losses and a
shrinking tax base.
A striking number of
these communities are
taking matters into
their own hands, however. They are developing innovative strategies to transform
their abandoned malls and big box
stores (and the acres upon acres of
asphalt parking lots surrounding
them) into more productive assets for
future growth. Antioch and East Austin are part of a much larger trend.
One of us, Prof. Dunham-Jones,
along with her colleague June Williamson of the City College of New
York, has developed a database that
includes information on 650 such retails properties across the nation. All
MIG|SVR
Hockey,
housing,
and green
space.
THE FORMER parking lot of Seattle’s Northgate Mall includes senior housing.
of them are at some stage of being redeveloped, reused or regreened, and
the actual total may be twice as high.
When the Villa Italia Mall in Lakewood, Colo., closed and defaulted to
the city in 2001, the local government
worked with a developer to raze most
of the buildings, cut new roads and
create a lively hub neighborhood of
homes, offices and arts centers, with
some new stores too. Belmar, as it is
now called, is already generating four
times the tax revenue that the old
mall did. Eight of the 13 malls in the
Denver metropolitan area are being
similarly retrofitted and remade.
Derelict shopping centers in other
places are being turned into muchneeded parks and open space. In the
1960s, Meriden, Conn., allowed developers to pave over a creek and
build a mall; the town was plagued
with flooding as a result. The mall
was recently demolished and the
land transformed into a park that is
both a catchment basin for stormwa-
ter runoff and an amenity that
has catalyzed development of
new mixed-income housing.
Outside of Seattle, the parking
lot of the Northgate Mall was
built atop a salmon stream. When
the mall’s owners applied for a
permit to expand it, the city negotiated a land swap instead. The
existing parking lot was demolished, the stream was restored
and housing, much of it for seniors, was built alongside it.
Too often, local economic development initiatives turn on
massive tax giveaways to big
companies. By working with private developers and thoughtfully
using their powers to tax, rezone
and invoke eminent domain, jurisdictions can strengthen their
tax bases instead, while rebuilding the quality of their communities
in ways that can spur more sustainable growth.
Prof. Florida teaches at the University of Toronto’s Rotman School of
Management and is a distinguished
fellow at NYU’s Shack Institute of
Real Estate. Prof. Dunham-Jones is
the director of the Urban Design
Program at Georgia Tech and the
author, with June Williamson, of
“Retrofitting Suburbia.”
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.
C4 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
REVIEW
IN AN EPISODE of the satire ‘Selfie’ on Saudi-owned MBC, comedian Nasser al-Qasabi plays a father who reluctantly and disastrously joins a jihadist group to try to save his son.
Arab Liberals
Become Media Stars
COURTESY TURKI ALDAKHIL
n-
no
THE SAUDI government’s decision
this past week to lift its 35-year ban
on movie theaters delighted entertainment lovers across the kingdom. But
for a small band of Saudi liberals, who
look to cinema and other media as
means to effect social change, it was a
particularly sweet moment.
For decades, liberals in Saudi Arabia and other Arab countries have
championed religious and ethnic pluralism, women’s rights and the rule
of law as building blocks of security
and prosperity in their societies.
Outsiders often discounted them,
seeing their influence as too modest
to make a difference, and their defeat by Islamists in the elections that
followed the Arab Spring of 2010-11
seemed to validate this view.
A reappraisal is now in order. Arab
liberals willing to partner with conservative regimes now occupy prominent
spots in top media outlets in the region and reach tens of millions of
viewers, listeners and readers. They
are challenging Islamists through
news and comedy shows. On talk
shows, dramas and editorial pages,
they are promoting equality for
women and among sects. Through
children’s programming, they are advocating critical thinking as an antidote to demagoguery. Their hope, ultimately, is to build support for changes
in religious institutions, civil society
and government itself.
Liberals remain, to be sure, a minority in Arab media. Dozens of extremist sectarian channels broadcast
hate speech around the clock, typically on behalf of Iran-backed militias
and Sunni jihadists, who also excel at
using social media to indoctrinate
and recruit impressionable youth. At
the same time, liberals who engage
openly in politics, beyond the license
of their authoritarian regimes, often
continue to face repression.
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With new access to television and print, they have made
their peace with authoritarian regimes worried about Islamists
BY JOSEPH BRAUDE
has been on air making the case for
independent trade unions and appealing to President Abdel Fattah Al Sisi
to end the state’s corrupt labor monopoly. Arrests of some labor activists
continue in Egypt, and a draft trade
union law would further suppress the
movement’s freedom of association.
But in a society taught to regard labor
activists as enemies of the state, Mr.
Abbas has been allowed to make his
case to a mass audience.
All of these liberal voices pay a price
for the opportunity to advance their
agendas: They must forswear revolutionary aims, limit their calls for political reform and find opportunities to
compliment their rulers. Some understandably reject this bargain. The Saudi
scholar Abdullah al-Rashid makes a
ly
.
The liberalizing trend has accelerated recently as Crown Prince Mohammed bin Salman, the heir to the
throne, has taken up its banner. In
addition to greenlighting public
movie houses, the kingdom has
granted women the right to drive
and has stripped the religious police
of their power to make arrests.
In the year leading up to these
moves, Saudi media did much to prepare the way and to minimize the
backlash. News channels aired
smartphone videos showing the alThose same autocrats and their al- mixed up at birth and suddenly re- leged corruption and abuse of the relies, however, own the key channels of united with their biological parents. ligious police and gave their female
communication and in recent years, The Shiite father, seeking to teach victims a friendly hearing. Reformist
especially since the Arab Spring, have his real son to pray “correctly,” or- intellectuals published articles, based
become crucial patrons of liberals who ders him to “go to the [Shiite] in Islamic tradition, arguing against
are willing to play by their rules. As mosque—but don’t blow it up.” such religious regulation.
the authorities see it, the liberals’ mes- These broadcasts, whether enterChange is also afoot in Egypt, the
sage helps to undercut Islamist propa- tainment or news, also influence the region’s entertainment capital and
ganda, mend the social fissures that ji- discussion on social media, as mil- home to an appalling history of antihadist groups try to exploit, and make lions of young people post clips Semitism on stage and screen. Such
the case for controversial reforms.
from the shows and make them the bigotry persists but has been met by
For decades, Saudi Arabia was the subject of online discussions.
the beginnings of an effort to humanpre-eminent hub for
ize Jews and other mipromoting Sunni Islanorities. The hit 2015
mist militancy on air
Ramadan series “The
and in print. Though the
Jewish Alley” presents a
government has evicted
flawed but earnest rethe most direct inciters
creation of multidenomof violence, they still
inational Cairo on the
broadcast from elseeve of the 1948 Arab-Iswhere, including Euraeli war, co-starring a
rope, and some religious
sympathetic Jewish herbroadcasters with exoine. Other productions
tremist messages rehave helped to counter
main unhindered.
the demonization of the
What is new on state
country’s
embattled
television is anti-jihadist
Coptic Christians, who
programming such as
now operate satellite
“Our Mission,” in which
channels of their own.
ex-terrorists repudiate
Since the fall of
LONGTIME liberal talk-show host Turki Aldakhil manages
their former comrades.
President Hosni Mubathe al-Arabiya news channel controlled by Saudi royals.
The pan—Arab news
rak (and even under his
channel al-Arabiya, a
Islamist successor Moprivate company controlled by the
These changes in Saudi media have hammed Morsi), public affairs shows
Saudi royal family, is managed by been in the works for many years. have increasingly featured Egyptian
Turki Aldakhil, an outspoken liberal Prompted by the attacks of 9/11 and by liberal intellectuals whose forbears
promoted to the post after 10 years the bloody al Qaeda bombings of resi- were blacklisted or assassinated. The
hosting a prime time talk show that dential compounds in Riyadh in 2003, present crop includes the theologian
elevated advocates for women’s rights the royal family reshuffled the infor- Islam Behery, a one-time prisoner for
and Islamic educational reform. (Dis- mation ministry and state media. Lib- the crime of “contempt of religion,”
closure: I am a fellow at the Dubai- eral opponents of Islamism—jailed in who calls for a modern reading of
based Al-Mesbar Center, a think tank the past for speaking out—were en- the Qur’an unbound by ancient cafounded by Mr. Aldakhil.)
couraged to express themselves in nonical interpretations. Though some
The Saudi-owned network MBC, print and on air. That same year, the state TV shows sympathetic to jihadlike al-Arabiya based in the United liberal Saudi newspaper editor Abdul- ism remain, the most extreme have
Arab Emirates, broadcasts “Selfie,” rahman Al-Rashed launched al-Ara- been shut down.
a hit satire show that mocks ISIS biya, and the Saudi comic actor Nasser
Egypt’s leading voice for workers’
and prompts introspection about al-Qasabi—now the star of “Selfie”— rights, Kamal Abbas, was not even alviewers’ personal biases. A recent began using his own state TV show to lowed to watch television as a prisepisode told the story of two teens, indict terrorism, male chauvinism and oner in Mubarak’s Egypt, let alone to
one Sunni and the other Shiite, government corruption.
appear on it. But in recent years, he
Some see them as
mere courtiers,
currying favor.
distinction between “social liberals,”
who accept these arrangements, and
“political liberals,” who don’t.
Social liberals argue that a democratic opening, unless preceded by a
wider cultural transformation, would
only bring extremists to power. The
Saudi intellectual Turki al-Hamad,
for example, has accused liberal dissidents of effectively courting Islamists by refusing to limit their own
ambitions for political reform.
On the other hand, critics have dismissed the less principled voices in
Mr. Hamad’s camp as mere courtiers,
eager to curry favor with the authorities. They are mocked by the likes of
Yusuf Husayn, an Islamist-leaning
Egyptian comic in exile. He has won
hundreds of thousands of YouTube
views for stringing together clips of
Egyptian talking heads parroting the
views of President Sisi.
Mr. Husayn’s fans will have their
laugh. But amid a metastasizing civil
conflict stoked by extremists on air
and online, there is an obvious need
to answer with a more humane vision of possibilities for the Arab
world—however imperfect the patrons and the platforms.
Mr. Braude’s new book is “Broadcasting Change: Arabic Media as a
Catalyst for Liberalism” (Rowman
& Littlefield).
WORD ON THE STREET: LYNNE MURPHY
THE HOLIDAYS are a great time
for consuming delicious mulled
beverages—and also for mulling
the question of why they have that
peculiar name.
Some 2,000 years ago, the Romans started drinking warm, spicy
wine to ward off winter illnesses,
and they spread the practice across
Europe. One of the earliest known
cookbooks in English, the 1340
Forme of Cury, includes a recipe that
calls for most of the familiar mulledwine flavorings—cinnamon, ginger,
nutmeg, cardamom, cloves, sugar—
ground into a “powdour,” added to
wine and left to steep for a day.
It sounds like mulling, but that
word was still some time away.
The drink was called “Ypocras” (or
“Hippocras”) after the cloth sieve
invented by the Greek physician
Hippocrates, through which the
wine was poured.
Only in the 1600s did the English
The Many Ingredients of ‘Mulling’
start calling it “mulled wine.” They
still do, but why?
One proposed explanation is that
“mulled” came from “mould,” an old
term for the human body in decay.
“Mouldale” was a rare 15th-century
term for a funeral banquet, and it is
but a short phonetic hop from
mouldale to mulled ale. But the 150
years that separate the last sighting
of “mouldale” and the first of
“mulled” mean that the etymology
doesn’t hold water—let alone wine.
Some search for the origins of
“mulled” in other drink names,
noting the similarity to Low Dutch
“mol,” a type of beer, or Latin
“mulsa,” for a mead-like drink of
honey and wine. A tantalizingly
similar use of “mulset” is found in
a 1540 treatment for epilepsy:
“the uryne of a wylde Bore with
mulset vyneger.”
Still, it’s more likely that
“mulled” came, simply, from the
The OED lists 11
nouns and six
verbs under the
spelling ‘mull.’
English word “mull.” But that
doesn’t resolve much. The Oxford
English Dictionary lists 11 nouns
and six verbs under the spelling
“mull.” These refer to everything
from animal lips to the moistening
of leather to make it more supple.
The best contender is one of the
oldest definitions: something reduced to small particles. Small particles of spice might have been the
mull that mulled wine.
An even older meaning is “to
soften.” After all, the spices take the
edge off the wine, which then takes
the edge off the drinker. This seems
to be how the word is used in
Shakespeare’s “Coriolanus,” where
peacetime is described as “mull’d,
deaf, sleepy, insensible.”
Finally, when we “mull” the question of why we “mull” wine, we
bring the issue full circle. “Mull” as
a synonym for “ponder” first appears in American English in the
late 1800s. A few decades later, people started “stewing” over problems
as well. It’s all part of a rich collec-
tion of metaphors with ideas as edibles and minds as the cooking pots.
As for actual drinks, there’s also
mulled cider, which seems American
in origin. Washington Irving’s Knickerbocker’s History of New York
(1809) includes it as one of the New
Year indulgences of 17th-century
New Amsterdam. In coming to Britain, the American term displaced
the traditional English “wassail,” a
mulled cider or ale drunk as a toast
to health or a good apple crop.
“Mulled wine” isn’t alone—eggnog, wassail and many drink names
have murky origins. Do we drink to
forget, only to forget why we named
our drinks?
—Ben Zimmer will return next week.
Answers
to the News Quiz on page C19:
1.C, 2.B, 3.D, 4.C, 5.A, 6.B,
7.C, 8.A
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NOAH WOODS
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C6 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
BOOKS OF THE YEAR
12 Months of Reading
CHILDREN’S BOOKS: MEGHAN COX GURDON
In “The Disruptors’ Feast,” Frits van
Paasschen, the former CEO of Starwood Hotels, takes readers on a
global journey through decades of
his work to discover the path
through disruption. It was refreshing to step outside of the dynamics
of my own industry and immerse
myself in Mr. van Paasschen’s compelling narratives of some of America’s most beloved brands as they
overcame or succumbed to industry,
economic or customer changes. In a
warm and engaging style, Mr. van
Paasschen directly addresses seemingly perennial topics such as technology, globalization and sustainability, which can have a momentous influence on any industry.
Despite the challenges that lie
ahead for leaders in our rapidly
evolving economy, Mr. van Paasschen is soberly optimistic in his
parting words: “It is better to prepare than to predict.”
—Ms. Alber is the CEO of WilliamsSonoma Inc.
Anne Applebaum
city working together. To
meet the needs of our residents and visitors, we must be
smart and strategic in our work,
and checklists can help us do that.
Dr. Gawande doesn’t present checklists as a silver bullet, but by emphasizing the importance of open
and deliberate communication, he
does show us how we can use them
to avoid simple mistakes and be
more deliberate about successfully
managing challenges.
—Ms. Bowser is the mayor of the
District of Columbia.
Sherrod Brown
I live in Cleveland’s 44105 ZIP
code. In the first half of 2007, we
had more foreclosures than any
other ZIP code in the U.S. Matthew
Desmond’s “Evicted” tells the stories behind these numbers. What
happens to families facing eviction
or foreclosure? They give up the
family pet to save money. When
that isn’t enough, they’re forced to
move. That means the kids will
have to change schools and take
the bus. Mom will be away more,
because she’s getting a second job.
Mr. Desmond lived in Milwaukee, a
city not that different from mine.
When people living on the edge get
their paycheck, he told me, “rent
eats first.” Inside my copy of his
book, Mr. Desmond scribbled a note: “home = life.”
Tom Cotton opted
for ‘The Working
Class Republican.’
Too many in Washington
don’t understand that.
We need a government that will
partner with communities, from
Appalachia to the suburbs to
downtown Cleveland, to make
hard work pay off for all these
overlooked Americans.
—Mr. Brown is a senator from Ohio.
Ashley Christensen
no
Two excellent books published this year provide
both a beginning and an
end to the story of modern
Russia. Victor Sebestyen’s
“Lenin: The Man, the Dictator, and the Master of Terror” explains how Lenin
turned a narrow extremist
movement into a bloody
and terrifying new form of
state power. Masha Gessen’s “The
Future Is History: How Totalitarianism Reclaimed Russia” picks apart
the end result of that experiment
and dissects the totalitarian mentality created by 70 years of Leninist
dictatorship. Mr. Sebestyen’s most
arresting passages are about the
lies that Lenin told to win power;
Ms. Gessen’s central argument is
that the Soviet state’s subsequent
decades of dishonesty made it difficult for Russians, or anyone, to understand their country. She follows
several characters through the first
decades of post-Soviet Russia as a
new form of dictatorship is reimposed. While her characters grapple
with the moral dilemmas of the
present, they are also trying to escape, in different ways, the shadow
of the violent past.
—Ms. Applebaum is the author,
most recently, of “Red Famine:
Stalin’s War on Ukraine.”
Gabrielle Union
deeply admired
‘Difficult Women.’
Lloyd Blankfein
Ron Chernow is a great writer, a
great historian and a great biographer. His “Grant” is a gift. I’ve read
dozens of classics about the Civil
War and the era, and still I came
away with more knowledge and appreciation after reading his book.
He made Ulysses S. Grant’s heroism
and military brilliance more understandable even as he gave focus to
his flaws: his drinking lapses, his
gullibility on financial matters, his
sometimes poor judgment of people. I always like books about late
bloomers—they give me hope.
—Mr. Blankfein is the CEO of
Goldman Sachs.
Muriel Bowser
At a time when we have access to
an immense and sometimes overwhelming amount of information
and knowledge, Atul Gawande’s
“The Checklist Manifesto” makes
the case for a systematic approach
average American” above ideological purity. For Reagan, “government
planning,” not government activity,
“was always the ultimate foe.”
Thus, Reagan took actions for which
some conservatives—he called them
“ultras”—might condemn him today: supporting tax hikes in 1967
and 1982, for example, or largely
preserving the structure of Social
Security and Medicare. But
as Mr. Olsen wryly notes,
“So many people who invoke Reagan’s name do not
act or speak like him.” Nor,
it must be said, do they
win like him. Reagan was
elected to office in four
landslide elections, first as
the governor of California
and then as president. Republicans since then have
yet to match that level of success.
Perhaps there is a lesson in those
results, and “The Working Class
Republican” aims to teach it.
—Mr. Cotton is a senator from
Arkansas.
John Doerr
Two important causes are in peril
this year: health care and climate
change. The politics of both cloud
what we really need to do, which is
create a better health-care system
for all Americans and do all we can
to solve our global climate crisis.
As an engineer, I am drawn to
visionaries and problem solvers
who understand problems and offer
necessary and possible solutions. In
“An American Sickness,” former
emergency-room physician Elisabeth Rosenthal diagnoses the dysfunctional parts of our health-care
system. Tackling climate change,
there’s no better leader than former vice president (and my colleague at Kleiner Perkins) Al Gore.
“An Inconvenient Sequel: Truth to
Power” is his urgent reminder of
the very real threat of global
warming and extreme weather.
—Mr. Doerr is chair of the venture
capital firm Kleiner Perkins.
The Best of 2017
STUNNING artwork and vivid,
gory storytelling
make for a thrilling combination
in “Norse Myths:
Tales of Odin, Thor, and Loki”
(Candlewick) for readers ages 9
and older. In 20 “fast-moving, icebright” tales, Kevin CrossleyHolland tells of dwarves, gods,
monsters and the great ash tree,
Yggdrasill. Jeffrey Alan Love’s
dread-soaked pictures (see above)
exude extraordinary gravity and
power.
The hurt of sudden ostracism
makes a boy retreat to a deserted
island in the lush, marzipancolored pages of “Robinson”
(Scholastic). Peter Sís draws on
poignant childhood memories for
a beautiful picture book about
marshaling one’s resources, like
Robinson Crusoe, and learning to
brave life’s difficulties—even when
they’re pirates.
A little girl experimenting with
martial-arts poses is shocked and
delighted to find that she can
conjure powerful animals in the
witty picture book “The Five
Forms” (FSG). Furious fighting
soon engulfs the child’s bedroom
as a crane, leopard, snake and
dragon battle for primacy in
Barbara McClintock’s colorful,
dynamic illustrations.
Two friends set up a comfy,
civilized home well protected from
predators in Mac Barnett’s droll
picture book “The Wolf, the Duck
& the Mouse” (Candlewick). Jon
Klassen’s deadpan illustrations
show the duck and mouse dining
and dancing, too—much to the
howling discomfort of their landlord, the wolf. “And that’s why the
wolf howls at the moon,” we read;
“Oh woe! Oh woe!”
Under another moon, in a landscape of blues and blacks, a
solemn wolf takes his young son
out to learn proper form in the
picture book “Little Wolf’s First
Howling” (Candlewick), by Laura
McGee Kvasnosky and Kate Harvey
McGee. Little Wolf wants to howl
correctly, in this tale for 3- to 7year-olds, but he can’t help improvising: “Skibbity skobbity skooowooooo.” It’s so endearing that Big
Wolf has to join in.
“There was once a frozen forest,
cold as cold ever was,” begins
“Brave Red, Smart Frog” (Candlewick), a collection of seven traditional fairy tales retold with wit and
charm by Emily Jenkins. Rohan
Daniel Eason’s atmospheric artwork
brings readers into the enchantments of a dark, sparkling realm of
witches and wolves in this elegant
volume for readers ages 7-12.
Anne Fleming’s slim novel “The
Goat” (Groundwood) traces the
quirky overlapping stories of people
living in a Manhattan apartment
building just after 9/11. At turns
affecting and funny, this ingenious
ensemble piece features a girl
named Kid, a dog named Cat, and a
mountain goat that may or may not
be trotting around on the roof.
In the taut, haunting, ultimately
hopeful pages of “The Song From
Somewhere Else” (Bloomsbury),
a bullied girl and an outcast boy
struggle to keep hidden a lovely
but dangerous secret. Levi
Pinfold’s brooding, monochrome
illustrations add tension to A.F.
Harrold’s story of magic and
malice for children ages 8-12.
An orphaned city girl and a
mute peasant boy form a powerful
bond in the bittersweet pages of
“Bronze and Sunflower” (Candlewick), a novel by Cao Wenxuan,
translated by Helen Wang and
illustrated by Meilo So. Though the
story is set during the tumult of
China’s Cultural Revolution, political violence is just a distant roar
for the people of a riverside village
in this moving chronicle of
poverty, love and endurance for 9to 12-year-olds.
In M.T. Anderson’s brief, bitter,
brilliant novel for readers 14 and
older, “Landscape With Invisible
Hand” (Candlewick), human society has been conquered by hightech alien invaders. Teenage artist
Adam Costello navigates the ruins
in this sardonic meditation on class,
colonialism and fluctuating values.
Hungry ghosts, depraved aristocrats and 17th-century English politics mingle in Frances Hardinge’s
coming-of-age historical fantasy “A
Skinful of Shadows” (Abrams).
Young Makepeace has a terrifying
supernatural weakness that her
father’s family is determined to
exploit in this dark, sophisticated
story for readers 12 and older.
A missing billionaire, a teenage
girl with mental illness, a wealthy
youth scarred by parental indifference, “Star Wars” fan fiction,
guerilla art, literary references,
snappy dialogue—these things and
more crowd the pages of John
Green’s tender, sorrowful novel for
readers ages 13 and up, “Turtles
All the Way Down” (Dutton), the
author’s first novel since 2012’s
“The Fault in Our Stars.”
Philip Pullman returns to the
alternate world of the “His Dark
Materials” trilogy with “The Book
of Dust: La Belle Sauvage”
(Knopf), a novel he describes not as
a prequel but as an “equel.” Set 10
years before the trilogy, the story
for readers 12 and older follows two
children who rescue a prophesied
baby from agents of the repressive
Christian church and ferry her on a
phantasmagoric journey across
floodwaters to sanctuary. Brittle
anti-Christian bias notwithstanding,
it’s a cracking story.
ly
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Laura Alber
to it all. It is a strong reminder that
sometimes simple solutions can
help us manage complex tasks. In
the District of Columbia, the local
government functions as a city, a
county and a state. From fighting
for statehood to strategizing about
pest control, there is no issue too
big or small for the D.C. government, and almost every issue we
deal with requires groups
of experts from across the
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Any year Ta-Nehisi Coates publishes
a book is a year America moves one
step closer to ending racial divisiveness. This year he gave us “We
Were Eight Years in Power,” a selection of his incisive essays published
in the Atlantic that paralleled the
eight years of Barack Obama’s presidency. Mr. Coates is like television’s Dr. House in both intellect
and disposition. He’s a brilliant
diagnostician of America’s maladies
but with a pessimistic prognosis for
humanity in general. Ironically, his
dark insights make me feel even
more optimistic about America
bridging its racial divide because
we have writers and thinkers like
him to remind us of what’s important and to articulate it in such a
way that it can’t be dismissed.
—Mr. Abdul-Jabbar is a six-time
NBA MVP. He is the author, most
recently, of “Becoming Kareem.”
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Kareem Abdul-Jabbar
CANDLEWICK
We asked 50 avid readers—from Lloyd Blankfein & John Green
to Aly Raisman & Dar Williams—what they loved in 2017
Sometimes the stories of the past
feel the most timely of all. This year
there was no book more important
to me than John T. Edge’s “The Potlikker Papers,” which traces a history of the modern South through
the lens of food. As a chef of the
South, I clung to this book’s reminders that restaurants have always
been political spaces. The book handles the paradoxes of this region
without flinching, and creates a kind
of power through honest acknowledgment of how we arrived at our
current political climate. For joyous
creative inspiration, I turned to “Six
Seasons” by Joshua McFadden, an
ode to vegetables that hits the
perfect blend of approachability
and deliciousness. I don’t usually
cook from cookbooks—I use them
as a jumping-off point to riff in
my own way—but his recipes are
perfect as written.
—Ms. Christensen won the 2014
James Beard Award for Best Chef
in the Southeast and is the owner
of Poole’s Diner in Raleigh, N.C.
Tom Cotton
Ronald Reagan is often remembered
as a highly ideological president—
critically by the left, happily by the
right—but Henry Olsen dispels that
myth in “The Working Class Republican.” In a careful, detailed study of
the statesman’s words and actions,
Mr. Olsen contends that Reagan
“was less doctrinaire, less abstract,
and less antigovernment” than
commonly perceived. His “bluecollar conservatism” always put
“the virtue and dignity of the
Mohamed A. El-Erian
It’s been a strong year for books
on economics, business and technology—and an educational and
insightful one, too—from Andrew
Lo’s foundation-setting supplement to the efficient-market
hypothesis (in “Adaptive Markets”)
and Ray Dalio’s illuminating discussions of what has driven his
and Bridgewater’s success (“Principles”) to Amy Goldstein’s compelling and carefully researched analysis of a devastated industrial
town’s challenges in industrial
retooling and repositioning itself
(“Janesville”) and Satya Nadella’s
engaging discussion of both his
personal journey and the opportunities facing tech as Microsoft successfully reboots (“Hit Refresh”).
Also, with technological disruptions and inequality continuing to
feature highly in economic, corporate and political discussions,
there are valuable insights to be
gained from Brian Merchant’s
detailed analysis of what has gone
into the creation and proliferation
of the iPhone (“The One Device”)
and Walter Scheidel’s sobering
historical analysis of the causes
and consequences of inequality
(“The Great Leveler”).
—Mr. El-Erian is the chief economic
advisor at Allianz and the author of
“When Markets Collide” and “The
Only Game in Town.”
Joseph Epstein
The calm of the reading
life is only stirred by the
discovery of a hitherto
neglected important writer.
My own reading was so
stirred this past year by the
discovery of the novels,
essays, journalism and
letters of Joseph Roth
(1894-1939). Some years
ago I had read Roth’s “The
Radetzky March,” a chronicle of three generations of
the Trottas, a Slovenian peasant
family under the Austro-Hungarian
Empire that is ennobled when the
grandfather takes a bullet intended
for the Emperor Franz Joseph at the
battle of Solferino. The excellence of
the novel was unmistakable on first
reading, but on rereading it seems
even better. I’ve since read several of
Roth’s other novels—he wrote 15—
and much of his nonfiction. Every-
thing he wrote is touched by his
powers of perception. No page is
without its striking metaphor, or
sharp observation, or stunning aphorism. Roth’s great theme was the
demise of the Dual Monarchy, as the
Austro-Hungarian Empire was also
called, which ended with World War
I, the Russian Revolution and the
Treaty of Versailles, to be replaced
by the horrors of Russian communism and German Nazism.
Roth’s own life was har-
Satya Nadella
found inspiration
in ‘Code Girls.’
rowed by complex financial
troubles, a life of permanent transience, and the
alcoholism that brought on his death
at age 44. In a relatively brief 23year career he managed to leave a
substantial body of writing.
Although the pay is not great,
the nice thing about the reading life
is that you’re never out of work.
—Mr. Epstein’s most recent book,
co-authored with Frederic Raphael,
is “Where Were We? The
Conversation Continues.”
Dianne Feinstein
I read “1776” earlier this year and
was so impressed by how David
McCullough painted George
Washington as a man, not a
myth. Washington wasn’t a great
tactician or strategist like so
many latter-day generals with
whom we’re familiar. He wasn’t
the most gifted orator. But what
he did possess was an air of authority. Farmers with no military
training. Soldiers without shoes.
Men dropping dead during a
march. They all still followed
him. His army was small and illtrained, and he spent most of
the first year of the Revolutionary War in retreat. But he found
a way to keep the core of his
army together and persevere.
And after he was victorious on
the battlefield, he turned his will
to holding the budding country
together during incredibly unstable times. There’s a lesson here
for all of us. If you believe in
yourself, in your convictions, in
your tenacity, you can do amazing
things, even in the face of extreme challenge.
—Ms. Feinstein is a senator from
California.
Continued on page C8
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THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | C7
* * * *
BOOKS OF THE YEAR
Who Is Sylvia?
Plath draws and paints with equal
application and an impressive degree
of skill (the book is illustrated with
photos and examples of her drawings);
when you add to this her charm (she
endeared herself to almost everyone
she encountered, from elderly benefactresses to crusty Alfred Kazin when
he showed up to teach at Smith), her
self-ascribed “commercial flair” and
positively Victorian reserves of energy, it’s hardly surprising that she
began publishing at the age of 17 (with
an article in the Christian Science
Monitor and a short story in Seventeen), won every college literary
award and imagined a glorious future
for herself, replete with a worthy mate
by her side.
The Letters of Sylvia Plath,
Volume I: 1940-1956
Edited by Peter K. Steinberg
and Karen V. Kukil
Harper, 1,388 pages, $45
BY DAPHNE MERKIN
JANE BALTZELL KOPP
An unabridged, annotated
collection of the budding
poet’s candid letters, from
childhood through age 23.
she ended up, thanks to the intervention of Olive Higgins Prouty, who endowed her scholarship at Smith, in a
private room at McLean’s, where she
began treatment with Dr. Ruth
Beuscher. In one of her rare flashes of
humor, Plath later notes that she
“probably was the only Fulbright student to have a letter of recommendation written by her psychiatrist!”
For anyone familiar with the ins
and outs of Sylvia Plath’s life, these
letters provide an added gloss to the
known contours, tweaking her image
without seriously revising it. There
is, though, a certain thrill in reading
along as Plath the dedicated artist
hoves into view—evolving from an
ordinary if very bright and very selfabsorbed young woman concerned
about her appearance (Plath worried
that her nose was too fat) and her
wardrobe, stuck on boys and tanning, into someone intent on putting
both her talents and her life to account. That she was ambitious and
competitive—as well as a gifted
writer—from a preternaturally young
age goes without saying, but the surprise is in the consistency of her
vision for herself. Already as a 13year-old she was capable of artful
metaphors (“My long shovel of a toenail”) and vivid patches of description: “The miniature green fields
were dotted with tiny white houses,
gleaming blue lakes, small spots of
little trees. The ribbons of road that
criss-crossed the land were speckled
with shiny cars . . .”
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I would go so far as to say that the
unabridged nature of this book does
Plath a disservice, encouraging even
the ardent reader to skim for fear of
one’s eyes glazing over at the mention of another frugal purchase or
another lyrical description of the
weather. Except that at some point—
about 200 pages in—the close-up,
almost microscopic focus began to
exert its own fascination and I found
myself caught up in the clean-cut,
white-gloved ’50s atmospherics and
the emerging facets of Plath’s complex character that together form her
strong yet fragilely put-together identity. “I am more myself in letters,” she
wrote from Smith College to a male
correspondent she had taken a liking
to, and indeed, these letters seem
both a way for Plath to present herself to the world and a means of selfdiscovery. Her bubbling confidence
about her academic skills or her
appeal to boys, the latter having been
as important to her as the former, is
easily undercut, leaving her with a
“collapsed ego,” a sense of herself as
“an unimportant nothing.” One slowly
gets a sense of a split, almost bifurcated personality, all rhapsodic enthusiasm on the one side and all dark
apprehensions on the other. “Seventeen sent two brief mimeographed
copies of eulogistic letters about my
story,” she wrote her mother. “I
laughed a bit sadistically, and take
them out to read, whenever I think
I’m a worthless, ungifted lummox.”
Plath herself appears to be aware
of this uneasy duality, which she
refers to under the rubrics of “my
brown-haired personality” and “the
frivolous giddy gilded creature who
careened around corners at the wheel
of a yellow convertible.” It was probably no accident that she wrote her
senior thesis at Smith on the idea of
“the Double” in two of Dostoevsky’s
novels. Still, for those who read these
letters with a foreknowledge of
Plath’s suicide attempt while at Smith
and eventual suicide, in 1963, at the
age of 30, there is something almost
eerie in her frequent insistence, despite several references to suffering
from depression or “this slough of
despond,” on her invincible state of
happiness.
Her breakdown, when it comes—on
Aug. 24, 1953, after returning from a
stint in New York City as a Mademoiselle guest editor and undergoing “a
rather brief and traumatic experience
of badly-given shock treatments on an
outpatient basis,” Plath swallowed a
bottle of her mother’s sleeping pills
and took refuge in the family’s basement after leaving her mother a note
that she had gone on a long walk and
wouldn’t be back for a day or two—
comes very much out of the blue, a
two-week lapse between letters followed by a break of four months.
Plath’s disappearance and eventual
recovery after two days (her brother,
Warren, overheard her “weak yells”)
became nationwide news, which helps
explain her ironic reference to the
events as “my little scandal” and “my
escapade” in a letter to one of her
many male admirers—in this case,
Edward Cohen, who had written the
not yet 18-year-old Plath a fan letter
after reading a story of hers in Mademoiselle. After spending “two sweltering weeks” in the psychiatric ward of
Newton-Wellesley Hospital, “exposed
to the curious eyes of all the student
nurses, attendants, and passers-by,”
ly
.
EXCELLING Sylvia Plath in 1955, when she was a Fulbright Scholar at Newnham College, University of Cambridge.
“The world is splitting open at my
feet like a ripe juicy watermelon,” she
enthused to her mother after being
elected to a Phi Beta Kappa society
and discovering that W.H. Auden
(who would consider Plath “glib”)
would be coming to teach at Smith
the following year. On page 1,161 of
these letters, a mere four years later,
while Plath was at Cambridge, a “brilliant poet” and “violent Adam” named
Ted Hughes has recently walked into
her life, stretching her horizons and
filling her with wonder at the enormity of their kinship. “I have fallen
terribly in love,” she writes to her
mother, “which can only lead to great
hurt.” Several pages later she adds
with equal certainty, in another letter
to her mother: “He is a breaker of
things and people; I can teach him
care, can use every fiber of wisdom I
have to give him growing gentleness
of others.”
Stay tuned for Volume II.
Ms. Merkin is the author, most
recently, of “This Close to Happy:
A Reckoning With Depression.”
Connect. Listen. Learn.
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no
JUST WHEN you thought that absolutely everything pertaining to Sylvia
Plath and her short, tumultuous life
had already been said, here she comes
again, this literary chatterbox supreme, documenting every tremor of
her inner life as well as every rejection letter, sinus infection (“Today the
runny part has stopped, and I feel
fine, except for a little occasional
mucous”) and menstrual period. Not
to overlook her conscientious recording of girlish expenditures (“I spent
20¢ on 2 paper doll books, Rita Hayworth and Hedy Lamar”), early forays
into poetry (“I found a little fairy /
Sleeping in a rose, / As I picked her
up / She rubbed her tiny nose”) and
detailed menus (“For instance I had
for lunch: 3 bowls tomato-soup,
cream cheese and olives on rolls,
cupcakes, 3 cups milk”).
This time around the revelations,
small and large—there are 16 letters
to Ted Hughes, written when the
couple was briefly apart after getting
married—arrive by way of a galumphing 1,330-page volume of Plath’s collected missives, culled from libraries
and private collections and edited by
Peter K. Steinberg, an archivist, and
Karen V. Kukil, the curator of Plath’s
papers at Smith College. The first of
two volumes, the book has been annotated up the kazoo with persnickety
footnotes, weighs 4.1 lbs., and requires
a great deal of upper-arm strength to
carry around. Frieda Hughes provides
a brief, touchingly partisan foreword,
in which she points out that the abiding interest in her mother is due to
her father, “because, irrespective of
the way their marriage ended, he honoured my mother’s work and her
memory by publishing Ariel.” Amidst
all the polarization of opinion that
occurred in the wake of Plath’s death,
when her legacy as a gifted poet
expanded in direct correspondence to
Hughes’s demonization, this direct
statement by their daughter seems
not only persuasive but fair-minded.
I must admit straight off that I’ve
always wondered about the strict
necessity of thoroughbred enterprises
like this one outside of a purely academic or scholarly context. I’m as
rapt a reader of Plath’s poetry, journals and previous collection of letters
(“Letters Home,” edited by her
mother, Aurelia Plath, and published
in 1975) as anyone, yet I found myself
resisting the very comprehensiveness
and assumption of rapt interest entailed in this project. From the start,
Plath was in the habit of observing
herself like a lab specimen, clocking
in her daily food consumption, her
fluctuating weight and even the occasional bowel movement (“I just had a
big soft you-know-what this morning”) for the benefit of her mother,
who seems to have watched over her
daughter’s every sneeze like a hawk.
In return, there is no scrap of information that Plath deemed too insignificant to convey when she was away
at camp during the summers between
1943 (when she was 10) and 1948, be
it an ingrown toenail, the state of her
complexion (“Just this morning I saw
that a few of my big red spots were
drying up”), her shifting sentiments
about her bunkmates (“Ruthy is a
pain in the neck sometimes”) or her
swimming prowess: “I did three
hundred yards of swimming today
without stopping once—50 crawl, 50
inverted breast stroke, 50 elem. backstroke, 50 sidestroke, 50 brest stroke,
50 dogpaddle.”
Despite her later bouts of depression, her enmeshed relationship with
her mother, and the death of her
father, a German instructor and biology professor at Boston University,
when she was 8, from the evidence of
the mostly optimistic and often giddy
early letters Plath’s childhood seems
to have been a fairly sun-lit one. “I
long for my familys soft, sweet talk,”
she writes as an 10-year old. Then
again, I suppose there is always the
possibility that Plath was instinctively
dissimulating about her real feelings,
bent as she was on pleasing the recipients of her letters—mainly her
“abnormally altruistic” mother, whom
she wrote almost every day and
sometimes several times a day. “My
mother’s purpose in life,” she admitted to a college friend, Ann DavidowGoodman, “is to see me & my brother
‘happy and fulfilled.’ . . . I’ve got to
pretend to her that I am all right &
doing what I’ve always wanted . . .
and she’ll feel her slaving at work has
been worthwhile.”
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C8 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
BOOKS OF THE YEAR
MYSTERIES: TOM NOLAN
THE WRITER AS PROTAGONIST George Orwell (1903-50) at his typewriter.
The Road to ‘1984’
BY D.J. TAYLOR
The short, difficult,
incident-strewn life
of George Orwell, recast
in the form of a novel.
(model for the Ministry of Love)
rears up across the skyline (its director, Brendan Bracken, was known to
his staff as “BB”). Like Winston
Smith, our man has trouble buying
razor blades (“All shopkeepers are
fascists,” he grimly reflects after
shelling out for a dozen blackmarket specimens), while a sortie
into a nearby pawnbroker’s turns up
the glass paperweight that will resurface in the room above Mr. Charrington’s shop, where his protagonist
Winston and his lover, Julia, establish their love nest.
Most readers by this point will
probably want to convict Mr. Glover
of an excessive staginess. On the
other hand, it is difficult to imagine
how a dramatized life of this kind
could not be stagy. After all, each of
the half-dozen biographies of Orwell
on the market (and I should own up
to having written one myself) is effectively an exercise in teleology—that
is, they start with the achievement of
“Nineteen Eighty-Four” and work
backward to see how it was accomplished. The only essential difference
here, it might be said, is that Mr.
no
COMING BACK from George Orwell’s
funeral on a wintry afternoon in
January 1950 and finally settling
down to read his friend’s obituaries,
Malcolm Muggeridge thought he saw
in them “how the legend of a human
being is created.” Nearly seven
decades later, the legend seems to
renew itself on an almost monthly
basis. In the last year alone, Orwellfanciers have found themselves
taking the measure of John Sutherland’s “pathological biography,”
“Orwell’s Nose,” Thomas E. Ricks’s
spirited effort to bracket him with
Churchill as a kind of mid-20thcentury world hero and Michael G.
Brennan’s account of his religious
opinions, or lack thereof. Now comes
something more ambitious still: Australian writer Dennis Glover’s attempt
to recast Orwell’s short and incidentstrewn life in the form of a novel.
“The Last Man in Europe” (which
takes its name from Orwell’s working title for “Nineteen Eighty-Four”)
opens behind the counter of Booklover’s Corner, the Hampstead emporium in which Orwell labored in the
mid-1930s, with its lanky assistant
eyeing up the inviting figure of
Eileen O’Shaughnessy, the woman
who would become his first wife. “I
hope I’m interrupting some serious
writing,” Eileen jauntily commences.
“You are indeed. An important
scene,” Orwell assures her, before
explaining that the episode in “Keep
the Aspidistra Flying” (1936) on
which he is embarked will involve its
hero Gordon Comstock’s search for a
locale in which he can seduce his
girlfriend Rosemary. “Sounds promising,” Eileen decides, before sidling
up to the counter and resting her
arms on it.
Several other highly symbolic
vignettes from Orwell’s pre-war life
follow in quick succession. We see
him descending into a coal mine
during the journey around northern
England that produced his political
travelogue “The Road to Wigan Pier”
(1937). We accompany him to Spain,
Ruth Franklin
In a poem titled—with characteristic straightforwardness—“Poem,”
Elizabeth Bishop contemplated the
place where “art ‘copying from
life’ ” and “life itself” fade together, “so compressed /
they’ve turned into each
other. Which is which?”
This question is perhaps
the trickiest one for a
writer’s biographer, but
Megan Marshall handles it
with sublime sensitivity
and discernment in “Elizabeth Bishop: A Miracle for
Breakfast.” The author of
“The Peabody Sisters” and
the Pulitzer Prize-winning “Margaret Fuller,” Ms. Marshall has long
taken a special interest in the
work of iconoclastic women. Her
biography of Bishop—a famously
perfectionist poet who lived a
peripatetic and private life—benefits from her access to and judicious use of a new cache of the
poet’s letters. But it also showcases this biographer’s joy in
telling a fascinating story, from
Bishop’s miserable childhood to
her passionate love affair with
Glover is putting words into his characters’ mouths that they almost
certainly did not speak, and that some
of those words are faintly implausible—see in particular the creaking
conversation between Orwell and a
young man called David Holbrook,
who visited him on the Scottish island
of Jura in 1946 and whom he suspected of spying on him. “What have
you to say for yourself, Holbrook. . . .
Had a good read, did you?”
Meanwhile, the Orwell specialist
will be totting up factual errors in
“The Last Man in Europe”—none of
them hugely significant in themselves, but together calling the
authenticity of Mr. Glover’s context
into question. It is, for example,
wildly overstating the case to claim
that, after “Animal Farm” (1945),
Orwell suddenly became “one of the
most in-demand writers in the
world,” while his great friend
Anthony Powell—then living an
almost hand-to-mouth existence—
would have been startled to find
himself described in 1941 as a
“household name” and “fabulously
wealthy.” As for the prurient line or
two about Sonia, Orwell’s second
wife, doing nude modeling for the
painters of the Euston Road school,
this is categorically denied by her
biographer.
Where Mr. Glover definitely succeeds, alternatively, is in his crisp
retelling of Orwell’s end—that nightmare world of lung wards, emaciation (“He reckoned he had reached
the lowest weight a man of his stature could be without being dead”),
chest X-rays hung over light boxes
and bright red blood. Again, though,
I wasn’t entirely convinced by
Sonia’s final bedside visitation
(University College Hospital is the
sort of the place where they apparently “make allowances”), during
which she cheerfully unbuttons her
cardigan and encourages the wraith
beneath the coverlet to rootle
around. There is no point in complaining about any of this—it is all
part of the paraphernalia that goes
with being a legend—and no doubt
the HBO miniseries is already in
development.
a rancher and then runs for the
U.S. Senate, falling victim to a
smear campaign. Decades later,
three family members are attacked—and one dies—in acts that
seem to have roots in that longago time.
“Magpie Murders” (Harper),
by London writer Anthony Horowitz, may well be the cleverest
book of the year: a pastiche of the
classic amateur-detective novel
spliced with a harder-edged investigation into the sudden death of a
not-very-nice mystery writer. That
author’s editor appoints herself
unofficial investigator into his
demise, and she combs his final
novel for clues. The dead man’s
last thriller is a book-within-thebook. Both manuscripts prove
catnip to the reader.
Los Angeles author Joe Ide
made lots of fans with his first
book starring young AfricanAmerican P.I. Isaiah Quintabe. Its
follow-up, “Righteous” (Mulholland)—in which “IQ” digs into
the 10-year-old killing of his
older brother—may well earn him
more followers. IQ, who makes
his home in East Long Beach,
Calif., is a subtle avatar of
Sherlock Holmes. Where the
Baker Street sleuth injected cocaine, Isaiah sips espresso; while
the former idolized concert violinists, the latter savors Segovia’s
acoustic guitar.
Alan Drew’s gripping “Shadow
Man” (Random House) spreads
itself across Southern California in its hunt for a
serial killer who uses
the freeways to find
and then flee from
his victims. In this
superb police procedural, detective
Ben Wade and forensic
specialist
Natasha Betencourt
are forced to probe
their own psychic
wounds in the course
of investigating the
death of an adolescent
athlete.
“The Smack” (Mulholland), by prize-winning author
Richard Lange, follows an aging
con man from Reno, Nev., to L.A.
in search of an alleged stolen
fortune. Offbeat characters and
unexpected sentiment make this
a hard-boiled noir with a heart.
Rowan Petty, the book’s unlikely
protagonist, doesn’t think he’s
the right man for this violent job.
But he perseveres, feeling both “a
little noble” and “a little
doomed.”
“A Whispered Name” (Overlook) is the latest entry in English friar turned attorney and author William Brodrick’s morally
nuanced series involving Father
Anselm. Here the good priest
(and former lawyer) disinters
disturbing matters dating back to
World War I—matters involving
Anselm’s late mentor, Father
Herbert. As an army officer in
1917, Herbert condemned a soldier to death for desertion, while
other such offenders were given
more lenient sentences. Was Herbert responsible for an act of
cruel and unusual punishment?
Anselm’s prior instructs him to
get to the bottom of this moral
conundrum.
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By Dennis Glover
Overlook, 248 pages, $26.95
where he fought against Franco, was
shot through the throat by a Fascist
sniper and escaped across the French
border with Soviet hit squads on his
tail. We also get a glimpse of the
early years of his marriage to Eileen,
when the two inhabited a tiny cottage
in a remote Hertfordshire village. Ill
health and creative stirrings go hand
in hand, and the terror of a lung
hemorrhage is balanced by the fortuitous sighting of a small boy goading
a cart horse, which gives him the idea
for “Animal Farm.”
Thereafter, the twitches on the
conceptual thread come thick and
fast. In fact, Orwell seems scarcely
able to take a step through the
streets of war-torn London without
a scene from “Nineteen Eighty-Four”
leaching into his consciousness. The
University of London’s Senate House
n-
The Last Man in Europe
ATTICA LOCKE’S
fourth
novel,
“Bluebird, Bluebird” (Mulholland), may be her
best yet. In this
contemporary East Texas saga, a
black Texas Ranger investigates
two possibly related, apparently
racially motivated small-town
murders: one of an out-of-state
African-American lawyer, the
other of a young white woman
with ties to a white-supremacist
gang. Ms. Locke, born and raised
in Texas, has created a compelling lead in her hero, Darren
Mathews.
Scots author Graeme Macrae
Burnet, a recent Man Booker Prize
nominee, enhances his reputation
with “The Disappearance of
Adèle Bedeau” (Arcade), a superb
psychological period thriller set in
a small town in France. A pretty
waitress has gone missing, and
among those questioned by police
is a middle-aged bank manager
with a secret crush on the young
woman. He claims that he has no
useful information to offer. But as
the policeman in charge observes,
“When people say that they wish
they could be of more help, they
very often can be.” So it proves in
this case.
Versatile
author
Deborah
Moggach has written film scripts,
a best-selling novel and now
“Final Demand” (Overlook), a
trim thriller about a 32-year-old
English woman who reinvents herself as a smallscale embezzler. People trust Natalie
because they’re attracted to her
(“the prettiest
lass you ever
saw,” as one
former admirer
describes her).
She feels entitled
to
whatever she
wants: “Nothing
could touch Natalie, for she had a
charmed life.” But when her
bad deeds catch up to her, Natalie
must decide what to do with the
rest of a no-longer-charmed life.
Debut novelist Danya Kukafka’s
“Girl in Snow” (Simon & Schuster), set in Colorado, explores the
events leading up to—and the
grief in the wake of—a teenager’s
murder. Feeling most tormented
is a gifted, introverted classmate
named Cameron, so smitten with
the late Lucinda that he’d secretly
followed her and made sketches
of her. Cameron is prone to periodic blackouts akin to emotional
epileptic fits. He is terrified that
he may have killed Lucinda during one such episode. Untangling
the truth is but one of the missions of this meditation on memory and loss.
“Home Sweet Home” (Knopf)
is anything but sweet for the characters in this intelligent April
Smith novel, whose time frame
skips between the 1950s and the
1980s, working in elements of
murder
mystery,
courtroom
thriller and western adventure.
The book follows a New York lawyer to Rapid City, S.D., during the
Eisenhower era, where he becomes
ly
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GETTY IMAGES
The Best of 2017
Lota de Macedo Soares in Brazil
and her final years in Boston,
marked by illness and alcoholism
but brightened by a new relationship with a woman many years her
junior. Ms. Marshall studied briefly
with Bishop at a poetry
seminar at Harvard in
Jesmyn Ward
cheered ‘Writing
To Save a Life.’
1976, and she interweaves
the major episodes of
Bishop’s life with her own brief
memories of her subject, bringing
the poet into view from yet another perspective.
—Ms. Franklin is the author, most
recently, of “Shirley Jackson: A
Rather Haunted Life.”
John Green
I read a lot of poetry in 2017,
including the extraordinary “Calling
a Wolf a Wolf” by Kaveh Akbar. Mr.
Akbar’s poems give language and
Mr. Taylor is the author of
“Orwell: The Life.” His most recent
work is “The New Book of Snobs.”
form to many experiences I thought
too abstract for expression. They
are at once deeply personal and
about all of us. “Time will break
what doesn’t / bend—even time.
Even you.” I also loved Clint Smith’s
debut collection, “Counting Descent,” a slim book of poems that
speak of coming of age and learning
to see yourself in a world that has
already decided how it will see you.
“Do you know what it means / for
your existence to be defined / by
someone else’s intentions?” Someone else’s intentions are under the
microscope in “The Hate U Give” by
Angie Thomas. Ms. Thomas’s debut
was published in February but will
be read for many, many decades to
come. Starr, the novel’s protagonist,
has one of the best narrative voices
in the history of young-adult literature. Another YA favorite in 2017
was Renée Watson’s “Piecing Me
Together,” which followed a young
woman’s exploration of and reckoning with the many intersections of
art and race and class and community in her life.
—Mr. Green is the author, most
recently, of “Turtles All the Way
Down.”
Xiaolu Guo
I have a habit of reading “new”
books that are at least one or two
years old. I’m suspicious of yetto-be-tested newly released hardbacks. Here are the books I loved
this year: Norwegian author Karl
Ove Knausgaard’s “Autumn,” a
tender and beautiful love letter to
his unborn daughter. It’s strange
that after the multivolume confession of “My
John Green
embraced ‘The
Hate U Give.’
Struggle,” this personal
account still reads fresh
and charged with emotion. Yuri
Herrera’s dark vision of contemporary Mexico, “The Transmigration of Bodies,” presents the violent, tragic underbelly of Mexico
in a unique way. I would love to
experience Mr. Herrera’s style in
the original Spanish, even though
Lisa Dillman delivered a firstclass translation. The third non-
Anglophone book I enjoyed is by
the mysterious Berlin-based
Russian-German author Alina
Bronsky. The quirkiness and rich
texture in her “Baba Dunja’s Last
Love” made me want to read her
previous novels. Last but not
least, in the form of an epistle to
a daughter, is a miniature treatise
on economics for an economically
distraught world—Yanis
Varoufakis’s “Talking to
My Daughter About the
Economy: A Brief History
of Capitalism.” I can only
admire the light touch of
Mr. Varoufakis’s incisive
intellect.
—Ms. Guo is the author,
most recently, of “Nine
Continents: A Memoir In
and Out of China.”
David Hallberg
My 14 months spent in Melbourne
rehabilitating a foot injury were
difficult for me as a dancer, but
each morning when I would walk
into the Tivoli Road Bakery there,
I would be greeted with a warm
Aussie smile and the smell of 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.
Saturday/Sunday, December 16 - 17, 2017 | C9
* * * *
BOOKS OF THE YEAR
Co-Creating ‘John Wayne’
Wayne and Ford
By Nancy Schoenberger
Nan A. Talese, 240 pages, $27.95
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IMAGE MAKERS John Wayne (center) studies a storyboard for ‘The Alamo’ (1960) while director John Ford looks on.
tablished the genre, for a time, as the
paradigmatic expression of the ideal of
American masculinity.
Ms. Schoenberger identifies in each
of the seven canonical films, as well as
in several others, key elements of that
ideal. In “Stagecoach,” Wayne’s Ringo
Kid is the “good bad man,” the outlaw
who protects a prostitute (and then
falls in love with, and marries, her)
and avenges his family’s honor by killing the men who murdered them. Ford
invokes the genre’s classic dialectic between the constraints of “civilization”
and the freedom that lies beyond it.
The director’s sympathies, at this
point, lie with the forces that civilization cannot contain: The most attractive characters are an outlaw and a
prostitute, while the fussy Ladies’
Temperance Society is an object of
ridicule and the superficially gallant
Southern gentleman Hatfield, a
Confederate veteran played by John
Carradine, is a creepy cad who once
shot a man in the back. “Stagecoach”
ends with Ringo and his girlfriend
heading off to Mexico for their projected happily ever after. But in subsequent Wayne-Ford films, women recede from the foreground, as romance
gives way to homosocial bonding.
Joanne Dru, the co-star of “She
Wore a Yellow Ribbon,” said that in
real life Ford “really didn’t relate to
women. I’ve often thought that [Ford]
had tremendous insecurities—never
regarding his talent, but as a man. He
surrounded himself with these big,
strong bruisers.” Ford’s grandson Dan
Ford observed that “he was a man’s
man—hard drinking, carousing—and
he enjoyed the company of men over
women. That’s the way men were supposed to be in his day.” True enough.
But Ford may have also preferred the
company of men for other reasons,
too. In her 2004 memoir, actress Maureen O’Hara, Wayne’s frequent co-star,
recounted walking in on the director in
an intimate embrace with a male actor.
ion, Teju Cole and the New Zealand-based writer Ashleigh
Young, whose collection “Can You
Tolerate This?” will be published
in the U.S. in 2018. “Tales of Two
Americas: Stories of Inequality in
a Divided Nation,” edited by John
Freeman, presents 36 snapshots
of a country in distress; I lingered over Rebecca Solnit on gentrification, Kirstin Valdez Quade
on education and Karen Russell
on homelessness. Can writing
help bring society together? In his tour de
become citizens of “a world in
which we routinely converse with
voices from the past and imagine
that we might address readers of
the future.”
—Ms. Jasanoff is the author, most
recently, of “The Dawn Watch.”
knowledge by saving all of his
money to buy her books in
Braille. One of the books is Jules
Verne’s “20,000 Leagues Under
the Sea,” which was one of my
favorites as a kid. My job puts me
about two years behind on reading new books, but this
one was so layered,
n-
ies—low-budget “horse operas” aimed
at young boys attending Saturday matinees. Wayne used the time to cultivate a new persona. “When I started, I
knew I was no actor, and I went to
work on this Wayne thing. It was as
deliberate and studied a projection as
you’ll ever see. I figured I needed a
gimmick, so I dreamed up the drawl,
the squint, and a way of moving”—the
“most beautiful walk in movies,” as
director Curtis Hanson once put it.
In 1938, Ford ran into his estranged
stuntman fishing off Long Beach Pier
and invited him onto his boat; reconciled, the two became drinking buddies. That summer, as Ford prepared
to film “Stagecoach,” his first western
“talkie,” a producer proposed Gary
Cooper for the lead role. But Ford worried that Cooper was too old and expensive, so he screen-tested his old
prop boy, who he believed had aged
out of callowness and acquired a certain physical gravitas. For the second
time, Wayne ended up taking a role
that could have gone to Cooper.
Released in 1939, “Stagecoach” was
the first of Ford’s films to be shot in
what came to be his signature location, Monument Valley, stippled with
imposing rock formations along the
border of Arizona and Utah. “Stagecoach” was also the beginning of a 23film collaboration between Ford and
Wayne that included, by Ms. Schoenberger’s reckoning, seven canonical
westerns: “Stagecoach,” “Fort Apache”
(1948), “3 Godfathers” (1948), “She
Wore a Yellow Ribbon” (1949), “Rio
Grande” (1950), “The Searchers”
(1956) and “The Man Who Shot Liberty Valance” (1962). These films es-
no
NANCY SCHOENBERGER’S timing is
fortuitous. As pungent effusions of
“toxic masculinity” waft across America, with revelations of men behaving
badly proliferating, Ms. Schoenberger,
a professor of English at the College of
William & Mary, has published a paean
to the masculine virtues—toughness,
loyalty, honesty, duty and sexual probity, among others—embodied by John
Wayne. More precisely, it’s a paean to
the celluloid ideal of “John Wayne,”
the legendary figure created jointly by
the real, corporeal John Wayne and his
longtime collaborator and tormentor,
the film director John Ford.
“I think some of the confusion today about masculinity stems from the
fact that we no longer grow up watching Westerns,” she writes in “Wayne
and Ford”; American men, she quotes
Camille Paglia as saying, have been left
with “no models of manhood.” Maybe
so. But the reality is more complicated,
and more interesting, than that.
For starters, there never was a
“real” John Wayne—nor, for that
matter, was there a real John Ford.
Rather, there was Marion Morrison,
born in 1907, a farm boy from a struggling family in Glendale, Calif., who
was rechristened “John Wayne” by a
Hollywood filmmaker; and there was
John Martin Feeney, from Portland,
Maine, who adopted “Jack Ford” as a
professional name while working in
film production for his brother Francis
during World War I.
Ford discovered Morrison in 1928,
when Morrison’s football coach at USC
got him a summer job moving props
for Fox Studios. Ford caught sight of
the burly offensive tackle herding a
flock of geese and cast him as an
uncredited extra in two silent films. In
1930 Ford promoted him from prop
man to stuntman for his film about
life on a submarine, “Men Without
Women”—which, come to think of it,
could have been the title of Ms.
Schoenberger’s book.
After promising to pay $75 for
every dangerous stunt, the director
stiffed him, issuing only $7.50. “I
should have complained,” Morrison
said later, but “I was still a shy, timid
person, always embarrassed about
speaking up for my rights.” What a delectable, cognitively dissonant notion:
John Wayne—even if not yet officially
John Wayne—a “shy, timid person”!
Fortunately for the bashful Morrison, the director Raoul Walsh noticed
him one day carrying an overstuffed
chair over his hefty right shoulder on
a set at Fox Studios, shirtless in the
heat. “He had a certain western hang
to his shoulders,” Walsh recalled. Assigning Morrison his new moniker,
Walsh cast him as the lead character
in “The Big Trail” when Gary Cooper
was not available, and John Wayne,
movie star, was born. Or rather, as it
seemed at the time, stillborn. “The Big
Trail” bombed, nearly bankrupting
Fox—and Ford, resentful of having had
his protégé stolen by Walsh, refused to
speak to Wayne for two years. This
was standard operating procedure for
Ford, who was forever breaking with
friends and collaborators for years,
even decades, before eventually making up and working with them again.
For the next nine years, Wayne
toiled in “purgatory,” as Ms. Schoenberger puts it, making 58 (!) B-mov-
BERNIE ABRAMSON/UNITED ARTISTS/KOBAL/REX/SHUTTERSTOCK
BY SCOTT STOSSEL
greatest baked creations. The
brains behind this bakery,
Michael and Pippa James, have
just published their delectable
secrets in a cookbook, “The Tivoli
Road Baker.” Inside are the same
concoctions I devoured in
Melbourne, but now their scent
wafts through my kitchen in New
York. It’s a gorgeous book, with a
true sense of Aussie cafe life, reminding me of the days when a
smile and a pastry got me
through the hardest of
times.
—Mr. Hallberg is a
principal dancer with
American Ballet Theatre
and the author of “A Body
of Work.”
Maya Jasanoff
As a historian I’m not
surprised that our age of
interconnection has turned into
an age of fracture, but as a citizen I’m troubled, and as a writer
I find myself casting about for
new forms. Maybe that’s why I’ve
been reading lots of essays this
year: James Baldwin, Joan Did-
despite being relentlessly abused by
Ford during the making of the film.
Pouring salt on a suppurating wound,
Ford would say to the Air Force veteran Jimmy Stewart, within earshot of
Wayne, “How many times did you risk
your life over Germany, Jimmy?” and
then turn to Wayne, who had not
fought in World War II, and ask: “How
rich did you get while Jimmy was risking his life?”
As everyone who has seen the film
knows (spoiler alert!), the man who
shot and killed the evil Liberty Valance
was not the man who became famous
for it—Sen. Ranse Stoddard (Stewart)—but rather Doniphon, who saved
Stoddard’s life despite having lost his
beloved Hallie (Vera Miles) to Stoddard. Stewart’s character represents a
less macho and arguably more enlightened form of masculinity than Doniphon, but Stoddard comes to be
plagued by the knowledge that his reputation is based on a lie. Years later, he
confesses the entire story to a reporter
for the local newspaper, and the editor
declines to publish it—saying, in one
of American film’s most famous lines,
“When the legend becomes fact, print
the legend.”
Moralists since Plutarch have argued that biographical legends can
have an improving effect on those who
consume them. Ms. Schoenberger puts
herself in the Plutarchian tradition by
making the case that the wayward
men of today are lost in part because
they no longer have John Wayne as a
guide to behavior. But how useful is
that model, really, if it was fiction?
Wayne was married three times and
aged into a parody of himself, playing
slight variations on the same role
while in his political life spouting
Bircher-ish nostrums about patriotism
as compensation for his guilt over not
fighting in the war. Ford, the brilliant
co-creator of the Wayne legend, was in
his own real life even worse: a mean,
abusive, alcoholic, rampantly unfaithful S.O.B.—“a cruel father and a neglectful husband who almost always
preferred the company of men over
time spent with his family,” according
to Ms. Schoenberger.” Neither was an
avatar of ideal male comportment.
Though the western retains a hold
on the American cultural imagination,
its reign was brief: In 1959, 26 westerns
were airing on prime-time television,
featuring such examples of masculine
heroism as James Garner (“Maverick”),
Steve McQueen (“Wanted: Dead or
Alive”), Clint Eastwood (“Rawhide”)
and Ronald Reagan (“Death Valley
Days”); after 1969, it would be years
before any new TV westerns aired.
In retrospect, 1962—the year of
“The Man Who Shot Liberty Valance”—was probably the year that
“John Wayne” as a plausible ideal of
manhood expired. Ford’s heroic vision
curdled into the gothic sensibility of
the Spaghetti westerns and their offshoots. By 1970 the western as valorizer of the white-hatted masculine
hero was effectively dead.
Yet at this moment of reckoning for
men, maybe there remains some benefit to resuscitating the ideal that John
Wayne, at his most mythical, represented. Ms. Schoenberger’s affection
for him, and for her own war-hero father, is palpable. And no less gimleteyed an observer than Joan Didion,
writing in 1965, offered up Wayne as
her romantic beau ideal.
So OK, then: Print the legend.
David Hallberg
stopped in at ‘The
Tivoli Road Baker.’
force “The Written
World: The Power of Stories to Shape People, History, Civilization,” Martin Puchner brilliantly surveys the history of
writing from clay tablets to samizdat, and foundational texts from
the “Iliad” to “The Communist
Manifesto.” All readers, he shows,
Paul Kahan
This past year I read “All the
Light We Cannot See” by Anthony
Doerr and it may be the most
beautifully written book I’ve ever
owned. I would dog-ear pages and
find myself reading passages over
and over again, growing tearyeyed from such incredible prose.
The story is especially fascinating
to a secret science geek like me.
It’s about two young kids—a boy
and a girl—in World War II-era
Europe whose interwoven lives
lead to an eventual meeting. The
boy (a science prodigy) is being
trained for the Nazi Party in the
early 1940s, and the girl is suffering from a degenerative condition
that causes her to slowly go
blind. She has an amazing relationship with her father, who
empowers her on a quest for
Film by film, Wayne and
his director John Ford
together forged an ideal
of American masculinity.
Ford tortured Wayne. During the
filming of the 1945 war film “They
Were Expendable,” according to the
author, “Ford constantly insulted and
picked on Duke, pointing out he didn’t
even know how to salute properly.”
Another actor who worked on that
film recalled that Ford’s bullying made
“a quivering pulp” out of Wayne. Yet
out of this stew of sadism, closeted
homosexuality and antediluvian notions of machismo came some great
art. “The Searchers,” released in 1956,
has been ranked by the American Film
Institute as the greatest western ever
and is reckoned by many to be one of
the top 10 or 20 movies of all time.
Wayne’s Ethan Edwards has deeper,
and darker, depths than any character
he had played previously.
To my mind, “The Man Who Shot
Liberty Valance,” may be his the finest
Western Ford made. Wayne delivers a
sadness-tinged performance as the
rancher and gunman Tom Doniphon—
Claire McCaskill
took a trip to
‘Manhattan Beach.’
interconnected and fascinating that I tore
through it.
—Mr. Kahan is a chef and the
author of “Cheers to the Publican,
Repast and Present.”
Amy Klobuchar
While Katharine Graham’s “Personal
History” is not new, it is a book
with renewed importance—and one
of my all-time favorites. This was
the perfect year for a reread, with
women leaders in the headlines and
Mr. Stossel is the editor of the Atlantic magazine and the author of “My
Age of Anxiety: Fear, Hope, Dread,
and the Search for Peace of Mind.”
a new movie about the role
Graham’s Washington Post played
in publishing the Pentagon Papers.
In her 1997 memoir, Graham expressed serious concerns about the
Nixon administration’s attempts to
limit the information made available to the American public. That’s a worry I know
many share today. But this
book isn’t just about protecting the freedom of the
press—it’s about the power
of women to defend it. As
the CEO of the Washington
Post, Graham was the first
woman to lead a Fortune
500 company. In a business
dominated by men, she was
often the only woman at the table.
But she ushered in a golden age of
journalism and guided her newspaper through landmark stories. Graham once said “power has no sex.”
Her book shows us that one woman
can shape the course of history.
And that’s a good lesson for the
New Year.
—Ms. Klobuchar is a senator from
Minnesota.
Continued on page C10
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C10 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | C11
****
BOOKS OF THE YEAR
and he’s funny in a way that
stems from reflection and
generosity. He opened the door for
me onto an Arab Muslim world I
could never otherwise access so intimately. The same is true of Robert F.
Worth’s “A Rage for Order: The Middle East in Turmoil, From Tahrir
Square to ISIS.” I will always be in
awe of the courage and sacrifice it
takes to be a war correspondent. This
year I also read beautiful texts by
Iona Craig, about reporting from
Yemen, and by Lynsey Addario, about
photographing in Afghanistan, Iraq
and Lebanon. But Mr. Worth’s book is
especially unusual in how close he
brings us to people whose lives, relationships and beliefs are a palimpsest
of decades of complex politics and
conflict, and it educated and moved
me more deeply than all the countless
newspaper articles I’ve read on the
Middle East. I also read many powerful works of fiction this year—most
memorably, Jenny Erpenbeck’s “Go,
Went, Gone,” about a retired professor in Berlin who becomes deeply involved in the lives of African refugees
in that city, and László Krasznahorkai’s unclassifiable book of stories,
“The World Goes On,” which
reads like a spiritual journey
away from this world, to one
that does not yet exist.
—Ms. Krauss is the author,
most recently,
of “Forest Dark.”
Keith Law
I read obsessively, the way
some people do things like
breathe and eat, two activities I also enjoy, just not as much as I
enjoy reading. About 80% of what I
read is fiction, and the best work of
fiction I read from this year was B.
Catling’s “The Erstwhile,” the second
part of a planned trilogy that began
with 2012’s “The Vorrh.” Mr. Catling
has crafted a dark, antifantasy world,
set in an impenetrable central African
forest where the trees act as a unit,
causing interlopers to lose their memories and their minds. Mr. Catling returns many characters from the first
book, including the ex-cyclops Ishmael
and the Bakelite robots, while introducing a retired German theology professor and the artist William Blake.
It’s an immersive read that thrives on
its tenebrous atmosphere. I don’t read
many sports books—for me, sports is
work, and reading should be notwork—but I tore through Erik Malinowski’s “Betaball,” about the building of the Golden State Warriors into
an NBA champion and a model franchise. The title’s nod to “Moneyball” is
deliberate, as the Warriors are geographical and philosophical neighbors
to baseball’s Oakland A’s, early adopters of analytics and new technologies
that help them spot value in places
where other teams might not look.
Basketball has always been my least
favorite of the four major U.S. pro
sports, and it still is, but “Betaball” is
a book about changing a culture and
challenging established norms that
happens to look at a basketball team.
—Mr. Law is the author
of “Smart Baseball.”
Claire Messud
Akhil Sharma’s “A Life of Adventure
and Delight” is a slim but magnificent
collection of stories. This master storyteller’s elegant work, suffused with
dark humor, always surprises. His apparent simplicity is the result of rigorous precision and honesty: He illuminates his flawed characters with an
unforgettable combination of tenderness and ferocity. The fourth issue of
Freeman’s magazine, on the theme of
the future of new writing, provides a
thrilling range of voices from across
generations, genres and around the
globe. Like the tasting menu compiled
by a great chef, it is a revelatory and
delicious compilation. Jorie Graham’s
first collection in five years, “Fast,” is
permeated in equal measure by grief
and an exhilarating life force. Her extraordinary poems articulate society’s
contemporary insanity and the most
intimate experiences of memory, illness, love and death: In short, they
give new voice to life itself.
—Ms. Messud is the author, most
recently, of “The Burning Girl.”
Disruption is the new normal across
business, politics and culture. This
year I was captivated by three books
that explore the convergence and acceleration of shifts transforming the
world. In “Hillbilly Elegy,” J.D. Vance
taps into a culture in crisis—drugtorn Appalachia, where America’s
working class has been in
decline for 40 years. Their
struggle is real, and their
voices must be heard. Both
“Thank You for Being Late”
by Thomas L. Friedman and
“The Fourth Industrial Revolution” by Klaus Schwab
explore how the supernova
speed of changing technology is outpacing human
evolution and our ability to
manage through the change. Messrs.
Friedman and Schwab warn us of
dire consequences, but also offer
solutions that could improve the
future. I choose solutions. You can
either lead change or be a victim of
it. Now is the time for leaders.
—Ms. Morrison is the CEO of the
Campbell Soup Co.
the dangers of complacency in the
face of intolerance.
—Ms. Ng is the author, most recently,
of “Little Fires Everywhere.”
Indra Nooyi
Of all the books I’ve read this year,
one that really stood out was “Radical
Technologies” by Adam Greenfield,
which describes some of the ways innovation is transforming our daily
lives. The book depicts an urban landscape where street cleaners
carry GPS transponders to
The Answers
Catherine Lacey (FSG)
Compass
Mathias Énard (New Directions)
The Doll’s Alphabet
Camilla Grudova (Coffee House)
Signals
Tim Gautreaux (Knopf)
Ali: A Life
Jonathan Eig (HMH)
CoCo Vandeweghe
found a fit with
‘The Red Bandanna.’
ways. “Parallel Lives” is a
lengthy book but one I wish
I’d begun long ago.
—Retired Gen. McChrystal
is the managing partner of
McChrystal Group.
Claire McCaskill
Full confession: I typically read a 3to-1 ratio of fiction to nonfiction. But
this year? I read all fiction. After confronting a reality every day that sometimes felt unreal, I found myself turning to fiction, especially historical
The Ninth Hour
Alice McDermott (FSG)
Spoils
Brian Van Reet (Little, Brown)
Stay With Me
Ayobami Adebayo (Knopf)
Ants Among Elephants
Sujatha Gidla (FSG)
Becoming Leonardo
Mike Lankford (Melville House)
The Evolution of Beauty
Richard O. Prum (Doubleday)
Friends Divided
Gordon S. Wood (Penguin Press)
Good Booty
Ann Powers (Dey Street)
Henry David Thoreau
Laura Dassow Walls (Chicago)
Step into the ring with the greatest, live deliberately with
the sage of Walden Pond, chase down murderers in Indian
Country, and dance a little closer to the one you love.
Killers of the Flower Moon
David Grann (Doubleday)
Unwanted Advances
Laura Kipnis (Harper)
For descriptions of our choices, see on.wsj.com/books2017
Duff McDonald
I write about business, but I generally
can’t stand books about management.
An exception: “Stealing Fire: How
Silicon Valley, the Navy SEALs, and
Maverick Scientists Are Revolutionizing the Way We Live and Work,” by
Steven Kotler and Jamie Wheal. But
forget the part about “work”—that’s
just positioning. This is a book about
life, about finding flow, the state of
peak performance that no spreadsheet
can model. It’s a timeless topic but
also quite timely: No one is going to
nominate 2017 as one of the best
years ever, and many among us have
resorted to living in a hopeful future
when things should make more sense
again. “Stealing Fire” reminds us that
it’s not what happened yesterday or
might happen tomorrow that matters.
There is only now. Except, of course,
when David Sedaris is telling us what
happened that day in 1982. Can Mr.
Sedaris make anything funny? I’m
quite sure that I’ve laughed out loud
more often while reading him than
every other writer combined. His
latest collection, “Theft by Finding:
Diaries (1977-2002),” did not disappoint. Nor did a journey to Tanglewood in August to see him speak.
Measured by laughs a minute, seeing
David Sedaris reading David Sedaris
was the most entertaining evening of
my year. And if Mr. Sedaris can make
anything funny, the New Yorker’s
Adam Gopnik can write a beautiful
sentence about pretty much anything.
His own memoir, “At the Strangers’
Gate: Arrivals in New York,” provoked
the same reaction in me as all of Mr.
Gopnik’s work: I am awed by and
envious of his craft and simply baffled
by the span of his knowledge. Finally,
Eduardo Galeano’s “Hunter of Stories,”
published posthumously, is a highly
satisfying final collection of the great
Latin American writer’s signature
vignettes, a swirling mix of history,
philosophy, fable, poetry, humor,
memory and conscience. The fragment
“Diagnosis of Civilization” explains
why we need books like “Stealing
Fire”: “Somewhere in some jungle,
someone commented: ‘Civilized people
are so strange. They all have watches
and none of them has any time.’ ”
—Mr. McDonald is the author, most
recently, of “The Golden Passport.”
Satya Nadella
Early in Jennifer Egan’s beautiful
and mysterious novel “Manhattan
Beach,” 11-year-old Anna Kerrigan
recalls for her father that the gentleman they had just been to visit
told her something.
track their progress; sensors
capture traffic jams on local
thoroughfares and instantly alert drivers with a thick red line on their
smartphone screens; and every transaction in every bistro, shop and cafe
generates a profile of our personal
preferences and daily habits. If it feels
like the world is awash with data on
everything we think or do, you are
right: The data we generate every second of our lives is being culled at creation. With artificial intelligence, machines can probably understand us
better than we understand ourselves.
Change is inevitable. The big question
is, How do we retool ourselves? How
do we function in this new, utterly
transparent world? What are the social consequences of what we are experiencing? Longing for a past that
will never exist is not an option, and
“Radical Technologies” is a fascinating
glimpse at what we can achieve when
we embrace the changes happening all
around us and infuse our lives with
the spirit of possibility.
—Ms. Nooyi is the CEO of PepsiCo.
A novel I absolutely loved this year
was Katherine Heiny’s debut, “Standard Deviation.” It’s brilliantly funny,
properly laugh out loud. Plotwise, its
scale is domestic—it’s about a marriage, a family, relationships—but this
book is also about all the big questions. What’s “the standard”—who
says so and what happens if
we deviate from it? Ms.
Heiny’s work is a reminder
that the notion of there being
one standard is ridiculous—
that there are all sorts of
normal and spectrums and
they are all real and valid
and precious. The heart and
the soul of the book belongs
to Audra, who is charming
and spontaneous and unthinkingly generous with her time and
energy. I really felt happy reading
this, having Audra as company. She
has stayed with me, the writing has
stayed with me and the giggles have
stayed with me. I love recommending
this book to friends and hearing their
first chuckle erupt before the first
page has even been turned.
—Mr. Ottolenghi is the co-author of
“Sweet: Desserts From London’s
Ottolenghi.”
Leon Panetta
Huê’ 1968
Mark Bowden (Atlantic Monthly)
fiction, that allowed me to escape to a
different time and different place. I
had a number of favorites this year,
among them “Little Fires Everywhere”
by Celeste Ng, a well-written tale of
white privilege in a fender-bender
collision with less-traditional families
and multiculturalism. The Pulitzer
Prize-winning “Angle of Repose” by Wallace Stegner really stayed with me. This book,
written more than 45 years
ago, features a wheelchairbound history professor who
tells the story of his grandparents and their role in the
American taming of the Western frontier. Complex characters, a good story and wonderful, descriptive writing make
this book special. I also really enjoyed
Jennifer Egan’s “Manhattan Beach”
and Pam Jenoff’s “The Orphan’s Tale,”
which exposed both the strength and
peril of family and friendship, especially when there are secrets.
—Ms. McCaskill is a
senator from Missouri.
Jonathan Sacks had
nightmares about
‘Why We Sleep.’
Yotam Ottolenghi
Nonfiction
Stanley McChrystal
This year I read an old book in the
process of writing a new one.
Plutarch’s classic “Parallel Lives” is a
collection of profiles of Greek and
Roman leaders, written in about A.D.
100. It is the model and inspiration
for me and my colleagues as we think
about what leadership really means.
Arthur Hugh Clough’s 1,000-page
edition is a daunting read but made
clear to me why figures I’ve admired,
from Teddy Roosevelt to Alexander
Hamilton, carried, studied and were
inspired by Plutarch’s exploration of
leadership, with its profiles of familiar personalities such as Alexander,
Coriolanus and Julius Caesar. It’s not
a self-help book that reveals the
secrets of success, and it doesn’t provide a single handy list of the habits
of a great leader. But throughout the
compact biographies and Plutarch’s
illuminating analysis a theme arises:
character and virtue. Plutarch disdains the clever tactics and cheap
tricks that induce unreasoned passion
in the population or are used by a
leader to attain celebrity. Virtue still
matters, although it often
manifests itself in different
Improvement
Joan Silber (Counterpoint)
Race through the streets of Old Manhattan, follow a
soldier taken captive by jihadists, contemplate life in holy
orders and reconsider romance in the age of the algorithm.
Yotam Ottolenghi
felt ‘Standard
Deviation’ excelled.
slow burn and deeply satisfying. Finally, “The Letters of
Sylvia Plath, Volume 1: 1940-1956,”
edited by Peter K. Steinberg and
Karen V. Kukil: This is an amazing
feat of editing and an unputdownable
read for anyone with an interest in
Plath’s work. Her views on her own
writing and process are fascinating,
as is the insight into her professional
self, which—despite the strictures of
her private life and her mental health
problems—was constantly striving to
have her work recognized.
—Ms. McBride is the author, most
recently, of “The Lesser Bohemians.”
Ill Will
Dan Chaon (Ballantine)
Fiction
Eimear McBride
One of the books I loved this year
was Chris Kraus’s sort-of-biography
“After Kathy Acker.” The game with
the form is so beautifully tailored to
the subject, and Ms. Kraus’s direct,
energetic prose is a pleasure to the
ear. Acker’s work and legacy are certainly due for a revival, so for the
novice this is an excellent entrée,
while for the fan it’s a clever method
of encouraging reappraisal. The
novel that blew me away this year
was Jon McGregor’s “Reservoir 13.”
It’s one of the most finely wrought
books I’ve read in recent years. Only
an extraordinarily accomplished
writer can create, and people, a
world with such linguistic
restraint yet to such moving,
even haunting, effect. It’s a
Golden Hill
Francis Spufford (Scribner)
ly
.
Celeste Ng hit
the jackpot with
‘Lucky Boy.’
Denise Morrison
-c F
om or
p
m e
er rs
ci on
al a
us l,
e
on
This past year, I asked a journalist
friend to recommended the best
books to read right now about the
Middle East. He sent me to Riad Sattouf’s “The Arab of the Future,” a
graphic memoir about his childhood
in Libya, Syria and France between
1978 and 1984. I loved it: Mr. Sattouf
is always frank but never at
the expense of compassion,
no
n
Nicole Krauss
“What did he say?”
“He said I was strong.”
“And so you are, toots. Anyone can
see that.”
Anna’s father eventually disappears because he can no longer bear
the consequences of her sister’s severe disability, and we follow Anna
as she grows up, World War II begins, and she becomes the
first female civilian diver,
proving to men around her
that she is, in fact, strong.
The strength of women is also
on full display in “Code Girls”
by Liza Mundy. Immediately
after Pearl Harbor is attacked,
the U.S. government determined it needed a first-rate
code-breaking operation to
crack enemy messages. If you
enjoyed “Hidden Figures” by Margot
Lee Shetterly or “Alan Turing: The
Enigma” by Andrew Hodges, you’ll
love the fascinating story behind the
women of Wellesley, Smith, Bryn
Mawr, Mount Holyoke, Barnard,
Vassar—and a school teacher from
Lynchburg, Va.—whose mastery of
cipher alphabets and polyalphabetic
substitution cipher helped the allies
win the war. Rachel Carson’s
strength is one of five stories of cou-
rageous leadership during turbulent
times in Nancy Koehn’s “Forged in
Crisis.” The author’s account of Carson’s personal race against cancer to
complete “Silent Spring,” the environmental-science book that ignited
a movement, sits convincingly alongside the narratives of Ernest Shackleton, Abraham Lincoln, Frederick
Douglass and Dietrich Bonhoeffer. All their stories il-
Denise Morrison
didn’t miss ‘Thank
You for Being Late.’
luminate the strength,
pluck and deep sense of
obligation to do the right thing. Walter Isaacson’s “Leonardo da Vinci,”
the story of the world’s most creative genius, furthers Ms. Koehn’s
conclusion that leaders were made,
not born. “Dawn of the New Everything” by Jaron Lanier and “Do I
Make Myself Clear?” by Harold Evans are two other favorites from my
list this year.
—Mr. Nadella is the CEO of Microsoft
and the author of “Hit Refresh.”
Celeste Ng
In fiction, I wholeheartedly recommend Shanthi Sekaran’s “Lucky Boy,”
which explores class, race, undocumented immigrants and family—in
many shapes and forms—through the
prism of one interracial adoption. It’s
an honest look at complicated ethical
questions, plus it’s both heart-rending
and heartwarming, with a touch of
satire as it skewers the Bay Area tech
industry. There’s something for everyone in this wonderful novel. On the
nonfiction side, two books from previous years spoke powerfully and presciently to our current times. In a year
of immense upheaval, Rebecca Solnit’s
“A Field Guide to Getting Lost” was a
reassuring touchstone: a reminder
that sometimes what feels like uncertainty can actually be productive and
enriching. And Ronald C. Rosbottom’s
“When Paris Went Dark: The City of
Light Under German Occupation,
1940-1944” resonated eerily with 2017
America. From its analysis of the
French right’s rise to power and the
many attempts to deny what was occurring, to its nuanced exploration of
how both government and average
French citizen resisted—or collaborated with—the occupiers, this book is
a compelling, sobering warning about
At a time of turmoil about the future
of our nation and world, we struggle
each day to find anchors that can
steady us through the storm. Two
books I read in 2017 do just that. Bob
Schieffer’s “Overload” reflects on the
technological revolution that changed
how we get our news. His conclusions
are apparent every day—we are so
overwhelmed by information that we
cannot possibly process it; fake news
is a growing and dangerous threat to
democracies, with cellphones making
the situation worse; local newspapers
are on a death spiral; and our broken
electoral system feeds on this chaos.
But for Mr. Schieffer, the anchor for
good journalism remains the same:
truth, fairness and accuracy. Reporters need to keep asking questions.
That may not make them popular, but
it is what the Founders intended.
Lawrence J. Haas’s book “Harry &
Arthur” is a reminder of the kind of
bipartisan leadership that has guided
American foreign policy since World
War II. Today, many of our leaders
are questioning America’s global role:
After the war, leaders and citizens
had the same questions and doubts.
They came to understand that isolationism was not the answer. The
leadership of a Democratic president,
Harry Truman, and a Republican senator, Arthur Vandenberg, created a
revolutionary new foreign policy that
served America well for more than 70
years. That partnership is a timely,
inspiring and instructive history lesson that a partisan Washington needs
to learn today.
—Mr. Panetta is the chairman of the
Panetta Institute for Public Policy and
a former secretary of defense.
Jed Perl
Here are two books with enough perfervid energy to temporarily take a
reader’s mind off the nonstop political
developments of the past 12 months.
Both Joshua Cohen’s new novel,
“Moving Kings,” and the posthumously published memoir by the
painter R.B. Kitaj, “Confessions of an
Old Jewish Painter,” have a wild,
breakneck power. These writers, in
their altogether different ways,
embrace not only boldface American
experience but also the enigmas and passions of Israel,
Judaism and Jewish identity.
We’re invited to discover the
old in the new and the new in
the old; the result is the oldnew mix that all true art engages. Art and ardor, not dispassionate analysis, are the
order of the day. Mr. Cohen’s
novel encompasses the IsraeliPalestinian conflict and America’s racial and economic troubles; he
writes not as a sociologist seeking cutand-dry answers but as a storyteller in
the tumultuous tradition of Saul
Bellow and Ralph Ellison. Mr. Cohen’s
imagination allows us our own imaginings. As for the memoir of Kitaj—he
died in 2007—they bring to mind the
ornery swagger of one of the great
20th-century American memoirists,
Edward Dahlberg. When Kitaj writes
about friendships, love affairs, book
collecting, and the relationship
between modern art and Jewish art,
the velocity of his prose, mingling the
slangy and the Olympian, has a
bohemian-visionary intoxication.
—Mr. Perl is the author, most recently,
of “Calder: The Conquest of Time: The
Early Years: 1898-1940.”
David Petraeus
Ron Chernow’s “Grant” is an exceedingly readable, exhaustively
researched masterpiece that captures
the many extraordinary facets of a
genuinely modest and self-effacing
giant in American history. It helps
restore Ulysses S. Grant to the lofty
regard in which our 18th president
was once held—and should be held—
following decades of disparagement
by Southern historians in the 20th
century. Mr. Chernow’s biography of
Alexander Hamilton, which inspired
Lin-Manuel Miranda’s musical and
also benefited tremendously
from it, helped Americans
Dar Williams knew
‘You Don’t Have To
Say You Love Me.’
rediscover a Founding Father
with whom too few were
well acquainted. In “Grant,” Mr. Chernow captures the essence of another
truly extraordinary, often misunderstood figure who, after decades of
failure, emerged as an operational genius during the early years of the
Civil War and became the strategic
architect of the ultimate Northern victory. Grant helped hold the country
together as Army chief during the
tumultuous Andrew Johnson presidency and then firmly and compassionately guided the country as president. Even after losing all his money
in a misguided investment and while
suffering from terminal throat cancer,
Grant wrote a hugely successful autobiography, still regarded as the clearest and most unflinching of those
written by America’s great battle captains. It is entirely fitting that Ron
Chernow, one of America’s greatest
biographers, should write on Grant,
one of America’s greatest leaders.
—Retired Gen. Petraeus is the
chairman of the KKR Global Institute
at Kohlberg Kravis Roberts & Co. and
a Judge Widney Professor at the
University of Southern California.
Aly Raisman
My favorite book that I read this year
was Jay Asher’s novel “Thirteen Reasons Why.” I think everyone should
read it to understand how words and
actions can really hurt someone far
more than we may ever realize. Everyone has a story and is dealing with
something. We need to remember to
be kind, as we may never know what
someone else is battling with internally, even if everything looks fine on
the outside. “Thirteen Reasons Why”
brings to light what kids are facing
every day and helps us recognize the
various forms of bullying. It also
reinforces the need for schools to teach
kids from a young age to respect and
be kind to one another, and to create
an environment where students feel
comfortable speaking up if someone is
making them feel uncomfortable, no
matter their age or position of power.
—Ms. Raisman is a three-time
Olympic gold medalist and the
author of “Fierce.”
Continued on page C12
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.
C12 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
BOOKS OF THE YEAR
Hitler in Los Angeles
By Steven J. Ross
Bloomsbury, 414 pages, $30
Hollywood’s Spies
By Laura B. Rosenzweig
New York University, 285 pages, $29.95
Karl Rove
It’s been a year of political upheavals, not just here in the U.S. but
around the world. “Vox Populi: The
Perils & Promises of Populism,”
edited by Roger Kimball from a
collection of essays that originally
appeared in the New Criterion,
helps make sense of the forces that
pushed Western democracies into
turmoil and, possibly,
toward constructive reform.
And while Hillary Clinton’s
own book was turgid,
“Shattered: Inside Hillary
Clinton’s Doomed Campaign” by Jonathan Allen
and Amie Parnes is a wild
ride through one of the
most dysfunctional campaigns in history, on behalf
of the least authentic candidates in decades. The volume is
pure political crack cocaine for election junkies. Looking further back,
“The Second World Wars” by Victor
Davis Hanson is breathtakingly
magisterial: How can Mr. Hanson
make so much we thought we knew
so fresh and original? And this
being the Reformation’s 500th anniversary, Lyndal Roper shows us
what the dissenting monk unleashed
in “Martin Luther: Renegade and
Prophet.” Finally, two underrated
U.S. presidents continued their
revisionist climbs this year—America’s 18th chief executive in Ron
GEBURSTAGSFEIER Celebrating Hitler’s birthday at Deutsches Haus, Los Angeles, April 20, 1935.
Fortunately, Laura Rosenzweig’s
“Hollywood’s Spies: The Undercover
Surveillance of Nazis in Los Angeles”
supplies the context that is often
missing from Mr. Ross’s book. She
starts with Leon Lewis’s spy operation itself. Los Angeles, Ms. Rosenzweig explains, was a city in which
“political espionage was standard
operating procedure.” The business
community funded (and provided
office space to) the Los Angeles
Police Department’s notorious “Red
Squad,” which spied on communists
and busted up labor unions. Citizen
groups hired corrupt cops to rat out
police misconduct. Communists
angled for control of unions and
ports. Business groups paid fascists
to infiltrate the Communist Party.
The Ku Klux Klan spied on both the
fascists and the communists. In
short, everyone was spying on
everyone else. What made Lewis
different was his tenacity and his
connections.
Lewis had served as the executive
secretary of the Chicago-based AntiDefamation League in the 1920s.
That affiliation gave him deep ties
to Jewish groups nationwide. A
veteran of World War I, Lewis also
had strong connections to the American Legion. Indeed, he headed the
state chapter’s powerful “Americanism Committee.” Part of his legal
practice was devoted to securing
pensions for veterans. That’s how he
met such figures as John Schmidt, a
German-American World War I vet
who became Lewis’s first undercover agent. In many ways, Lewis’s
true mission—and greatest achievement—was to define domestic
fascism as “un-American” at a time
when anti-Semitism was rampant.
Lewis began investigating the
activities of groups such as the
Friends of New Germany and the
German-American Bund immediately
after Hitler became chancellor in
January 1933. When efforts to raise
money for his undercover operations
from the downtown Jewish establishment failed, he turned to entertainment attorney Mendel Silberberg
for help. Silberberg’s firm represented MGM and several other
studios. Together the two men
identified a new source of funds:
Hollywood.
In March 1934, Silberberg gathered his friends and clients at the
Hillcrest Country Club and asked
them to support a new organization—the Los Angeles Jewish Community Committee. Its purpose
would be to support Leon Lewis’s
spy operations, disrupt fascist activity in Los Angeles and publicize Nazi
espionage. In less than an hour,
the war. Afterward, the Los Angeles
Jewish Community Committee
turned its attention to broader
issues of discrimination, emerging
as an important civil-rights group.
Leon Lewis died of a heart attack
in 1954 at the age of 65. So discreet
was the spymaster that his prewar
activities were largely forgotten.
That probably wouldn’t have bothered him much. At the end of her
book, Ms. Rosenzweig relates a story
that sheds light on how Lewis took
his satisfaction.
Despite receiving numerous accolades over the course of his life,
Lewis retained just one award in his
files. It was mailed to him from
Berlin four months after Soviet
forces entered the city and ended
ly
.
BY THE MID-1930S, Hollywood was
America’s fourth largest industry. Its
most important figures—studio
heads such as Louis B. Mayer of
MGM, Jack and Harry Warner of
Warner Bros., and Joseph Schenck
20th Century-Fox—were Jewish. So
were many of its most influential
producers and actors. Yet Hollywood
greeted Adolf Hitler’s rise with
silence. Eager to retain access to the
German market and fearful of
fanning domestic anti-Semitism, the
studios allowed Nazi officials to
review scripts and suggest revisions. Not until 1939 did Warner
Bros. reject German censorship and
make an openly anti-Nazi film,
“Confessions of a Nazi Spy.” How,
historians have long wondered,
could Hollywood have failed to act
for so long?
In “Hitler in Los Angeles: How
Jews Foiled Nazi Plots Against Hollywood and America,” historian Steven
J. Ross offers a new answer to this
troubling question. According to Mr.
Ross, Hollywood did fight the
Nazis—in secret.
“Hitler in Los Angeles” tells the
story of an undercover spy ring,
funded by the studios, that infiltrated Nazi front groups operating in
Los Angeles in the 1930s. It’s a
remarkable tale, one that pits a
secretive, chess-playing Jewish spymaster—attorney Leon Lewis—and a
group of courageous German-American war veterans that he recruited
as his spies against a cast of villains
straight out of a classic Warner Bros.
film. Among them were Herman
Schwinn, the Western regional
leader of the Nazi front organization
Friends of New Germany; Leopold
McLaglen, a 6-foot-6 British fascist
and martial artist; and Leslie Fry, a
wily Nazi agent whose associates
devised a plan to murder Hollywood’s most prominent Jews (as
well as actors such as Charlie Chaplin, whose movies reportedly irked
Der Führer) by pumping cyanide gas
into their homes.
Mr. Ross has a novelist’s eye for
characters and detail. But the sheer
number of villainous plots he
relates, each with its own set of
plotters and informants, threatens
to overwhelm the reader. And as his
story advances, the significance of
these schemes becomes increasingly
unclear. Schwinn and his Nazifriendly colleagues dreamed of “der
Tag,” the day when fascist storm
troopers would defeat communist
insurgents and take control of the
U.S. government. But was this ever
more than a delusional dream?
“Perhaps,” is Mr. Ross’s answer. A
professor at the University of
Southern California, Mr. Ross is a
distinguished historian of prewar
Los Angeles. For someone of his
stature, “perhaps” is disappointing
answer.
OVIATT LIBRARY COLLECTION/CALIFORNIA STATE UNIVERSITY, NORTHRIDGE
BY JOHN BUNTIN
no
SCI-FI FANS often lament the
death of “hard
science fiction,”
fiction that celebrates just-overthe-horizon science. It’s been
drowned, they say, by the tide of
fantasy and nostalgia. It’s been
killed off by disappointment over
the space program so eagerly anticipated 50 years ago. Has sci-fi
suffered a collective loss of nerve?
Not in 2017. Elan Mastai’s “All
Our Wrong Todays” (Dutton)
dramatizes just that fear, contrasting our “dank blister” of a
world with an alternate universe
where we got things right. But
what his story shows is that we
still have a chance of doing
things better. The better world’s
present is our own sci-fi future,
and that’s still within our grasp.
Gregory Benford’s “The Berlin
Project” (Saga) also looks back
at a moment where we could
have done better, the moment
when political concerns sent the
Manhattan Project the wrong
way on the vital issue of uranium-235 separation. How many
lives would have been saved if
the Allies had had the A-bomb
sooner? Or lost if the Nazi scientists had won the race? The core
of hard sci-fi is the belief that, as
Mr. Benford says, politics is important, but “physics bats last.”
Or maybe biology. Daniel Suarez’s “Change Agent” (Dutton)
sees the next Industrial Revolution as gene engineering. It will
give us agritowers for food, pharmatowers for medicine and gene
tweaks to customize embryos. All
fine as long as you remember
that “Mother Nature has a hell of
a backhand.”
She certainly shows it in David
Walton’s “The Genius Plague”
(Pyr), which takes off from the
premise that the largest living
thing on Earth is a fungus underneath the Amazon rain forest.
Who’s afraid of a giant mushroom? Well, if it’s adaptive, if it
can control its environment and
the people who inhabit it, and if
it senses danger . . .
Such futures seem alarming,
but in sci-fi alarm means excitement, and risk brings opportunity. If you don’t like things the
way they are, you can change
them, as H.G. Wells said long ago.
We could even get the space
program back on track, as imagined in Andy Weir’s “Artemis”
(Crown). Bubble-cities on the
Moon, just like all those old
magazine covers. But Mr. Weir’s
bubbles have been given hard
engineering, and the whole project this time is commercially viable. It could be done with current
technology.
One more hard sci-fi mantra is
“You ain’t seen nothing yet,” and
there are plenty of authors out
there who believe it. Every one
offers a different future. For us,
right now, decision time is all the
time.
The Plot Against Hollywood
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The Best
Of 2017
n-
SCI FI: TOM SHIPPEY
Chernow’s deeply revealing “Grant”
and the country’s 25th in Robert W.
Merry’s elegant “President McKinley: Architect of the American Century.” Both leaders deserve better
treatment for their time in the
White House and get it here.
—Mr. Rove helped organize the
political-action committee
American Crossroads and is the
author of “The Triumph
of William McKinley.”
Eimear McBride
had a lucky find
with ‘Reservoir 13.’
Tim Ryan
In “Drawdown,” editor Paul
Hawken lays out the findings of a
broad coalition of researchers on
the most effective solutions to climate change. The book is an impressive achievement, but what is perhaps most striking is the sheer
diversity of the solutions available
to us, from converting to greenenergy technologies to transitioning
to healthier plant-rich diets. The
book reminds us that although the
challenges we face are great, they
come with exciting opportunities to
change the world for the better. The
political upheavals of 2016 have left
me with little doubt that we need
fresh perspectives on complex issues. Ta-Nehisi Coates’s “Between
the World and Me,” a deeply personal account of growing up black in
America, is a raw and unvarnished
take on the emotional and physical
toll of systemic racial inequality. Mr.
Coates confronts racial injustice on
his own terms, upending comfortable narratives about our progress
that impede progress even further.
Similarly, in “A World in Disarray,”
Richard Haass challenges us to think
differently about America’s place in
the world. Mr. Haass describes a
collapsing world order and reminds
us that, though the U.S. will remain
crucial to maintaining global stability, the challenges we confront will
be both unfamiliar and complex.
—Mr. Ryan is an Ohio
representative in the U.S.
Congress.
Jonathan Sacks
The scariest book I’ve read this year
was Matthew Walker’s “Why We
Sleep.” Mr. Walker, a leading researcher in the field, warns us of the
risks of not getting enough sleep,
which applies to most of us, thanks
to laptop and smartphone screens
and addictive social media. We are
radically increasing our chances of
cancer, obesity, diabetes and Alzheimer’s, to name a few. A book to keep
you awake at night. Equally unset-
For 10 years a Jewish spy ring, funded by the studios,
disrupted Nazi operations in Southern California.
Their target, Hitler’s Hollywood henchmen, were a
cast of villains straight out of a Warner Bros. picture.
Silberberg and Lewis had secured
some $22,000 in pledges, the equivalent of more than $400,000 today.
For the next seven years, Hollywood
executives would direct and support
Lewis’s espionage operations.
So, yes, Hollywood moguls did not
speak out publicly against Nazi
Germany, but Mr. Ross’s and Ms.
Rosenzweig’s books show that they
did take vigorous action against the
Nazi threat.
The Japanese attack on Pearl
Harbor and Germany’s subsequent
declaration of war on the United
States ended Lewis’s spy operations.
Suddenly the FBI, Naval intelligence
and the LAPD were requesting
Lewis’s files to make arrests.
Schwinn and several of his associates were jailed for the duration of
tling, in a different way, was Douglas
Murray’s “The Strange Death of Europe,” the most disturbing political
book I’ve read this year. From travels through key European centers,
Mr. Murray weaves a tale of uncontrolled immigration, failed multiculturalism, systemic self-doubt,
cultural suicide and disingenuous
political leadership. Accurate, insightful and devastating. Most inspirational was Edith Eva Eger’s “The
Choice,” by a survivor of Auschwitz
who became a psychotherapist,
using her pain to heal that of others.
A female counterpart to
Viktor Frankl, she shows us
John Doerr
grappled with ‘An
American Sickness.’
how, in the face of evil or
despair, to “choose life.”
—Lord Sacks, the 2016 Templeton
Prize Laureate, is the former chief
rabbi of the U.K. and Commonwealth.
He is the author, most recently, of
“Not in God’s Name: Confronting
Religious Violence.”
John Scalzi
Disclosure: I find it difficult to discuss the work of N.K. Jemisin with-
the war. Exploring the ruins of
Hitler’s chancellery, one of Lewis’s
former colleagues, Pvt. Art Arthur,
discovered the ruined office of Air
Marshal Hermann Goering. From
there, on Nazi stationery, he sent
Lewis a document “stained by the
wind and the rain.” It was a standardized certificate for the Iron
Cross, German’s highest award for
military valor, with a blank space
where the awardee’s name was to be
added. Arthur had written in Leon
Lewis’s name, and at the bottom had
signed his own, with the tag: “new
management.” It was a fitting
tribute to a remarkable man.
Mr. Buntin is the author of “L.A.
Noir: The Struggle for the Soul of
America’s Most Seductive City.”
out sounding like a shallow, blurby
cheerleader. That said: “The Stone
Sky,” the capstone of Ms. Jemisin’s
literally groundbreaking “Broken
Earth” trilogy, establishes her as arguably the most important speculative writer of her generation. We all
want to be spoken of in the same
breath as Robert Heinlein, Ursula
Le Guin, Ray Bradbury and Octavia
Butler. Ms. Jemisin’s in the running
to do it. It’s because of her worldbuilding (and world-breaking) skills,
which are surprising in their directions and audacious in their execution. Ms. Jemisin’s universe, full of damaged
women, men and nearmythical creatures, doesn’t
coddle. People die and kill,
entire continents shatter
and it’s all exhilaratingly
necessary. Ms. Jemisin is
fearless. If you trust her,
she offers you a new world.
“The Fifth Season” and
“The Obelisk Gate,” the
previous books in the Broken Earth
series, won back-to-back Hugo
Awards for best novel, making her
the first author to do that in a double decade. “The Stone Sky” puts
her in a position to win an unprecedented third consecutive Hugo. It’s
that good. She’s that good.
—Mr. Scalzi is the author, most
recently, of “The Collapsing
Empire.”
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.
Saturday/Sunday, December 16 - 17, 2017 | C13
* * * *
BOOKS OF THE YEAR
The Old Lady of Threadneedle Street
Till Time’s Last Sand
By David Kynaston
Bloomsbury, 879 pages, $75
A GREAT ENGINE OF STATE ‘Interior of the Bank of England, City of London, 1792,’ engraving by Thomas Rowlandson.
money—is still more discombobulating. This being so, the history of the
Bank of England is necessarily a story
of crisis and error as much as it is of
wealth and right judgment. Walter
Bagehot, the famous editor of the
Economist, marveled at the development of Victorian finance along about
1870. For the first time in history,
Bagehot observed, no worthwhile
economic undertaking need fail for
want of money.
Not that all of the money was
invested wisely. Panics recurred at
roughly 10-year intervals beginning in
1825. Then, as now, prosperity was its
own worst enemy. Ultra-low interest
rates fanned the speculative flames.
“John Bull can stand many things, but
he cannot stand 2%” was Bagehot’s
maxim (it should be ours, too). Confidence led to cocksureness, which
brought forth excesses in lending,
borrowing, and securities valuation
and corner-cutting.
What did the bank do about it? Not
nothing, even in the palmy days of
laissez-faire. The 1825 crisis, perhaps
the worst of the 19th century, pushed
the bank to do what it had never done
before. Mr. Kynaston quotes Jeremiah
Harman, a member of the board of
directors: “We lent by every possible
means . . . consistent with the safety
of the Bank; and we were not on some
occasions over nice; seeing the dreadful state in which the public were, we
rendered every assistance in our
power.” That assistance proved sufficient to stop the panic cold.
Still, it was a long way from
emergency lending to the hands-on
interventionism of the 21st century. In
Victorian times, especially after a
landmark piece of legislation in 1844
robbed the board of its policy-making
discretion, the Old Lady was content
to let the gold standard function unimpeded. “The Bank,” as John Horsley
Palmer, a governor and veteran bank
director, explained it, “is very desirous not to exercise any power, but to
leave the public to use the power
which they possess, of returning Bank
paper for bullion.” Which is to say,
the bank did not presume to impose
its will on people who could convert
their currency into gold, or vice versa,
just as they chose.
Mr. Kynaston deftly describes
these arrangements, so foreign to the
21st century. True, anyone may nowadays exchange his pound notes or dollar bills for gold—or bitcoin—or do
the reverse. The difference is that the
value of money is undefined in law.
Its value floats—or, rather, sinks, as
today’s Bank of England (like today’s
Federal Reserve) seeks to depreciate
Peter Schwartz
We are at the beginning of a technological revolution. As intelligence gets embedded into everything, intelligent technology will
reshape every aspect of how we
live, work, learn, govern, cure and
make money. Tim O’Reilly, who has
been in the middle of every relevant conversation on this issue in
the past 30 years, provides a coherent and useful guide to understanding
what is happening, what
technology is making possible, and how we can
make wise choices. Learning the lessons of “WTF?
What’s the Future and
Why It’s Up to Us” may be
the best way to become a
master of technology
rather than its victim. In the end,
if Mr. O’Reilly is right—and I think
that he is—then many anxieties
about the future are mostly a failure of imagination, a fault Mr.
O’Reilly clearly does not share.
—Mr. Schwartz is the senior vice
president of strategic planning at
Salesforce.
century, and is told through the
lens of a surfer. I was tempted to
call this a surfing memoir, but that
typically evokes bleached-blond
hair, florescent wetsuits and quotes
from “Point Break.” In fact, Mr.
Finnegan shares his struggle for
self-discovery and coming of age in
the most beautifully written and
poignant narrative. The idea of
ocean water being drained
off of a jagged, shallow reef
even shedding a tear or two at their
own experiences along the way.
—Mr. Solomonov is a chef and the
author of “Zahav: A World of
Israeli Cooking.”
knowledge that you are about to
have your head spun round five
times over. My other great pleasure
of the year is John Crowley’s “Ka.” I
haven’t finished it yet because I’m
rationing it. Novels by this great
and most grotesquely undercelebrated of American fantasists come
along once in a blue moon. I am
presently crossing the Atlantic inside the mind of a crow, in
sentences each jeweled and
Michael Solomonov
I was moved by “Barbarian Days,”
William Finnegan’s Pulitzer Prizewinning memoir, which crosses
several continents and spans half a
to Lehman Brothers, which fell in
2008). At other times, they open their
vaults, as the Bank of England did to
avert the failure of Baring Brothers &
Co. in 1890. The governor of the bank,
William Lidderdale, was besieged with
cries for help. “Can’t you do something, or say something, to relieve
people’s minds?” a government bond
broker begged him, “with his arms
aloft,” as Mr. Kynaston relates.
The British government, in the person of Viscount Goschen, the chancellor of the exchequer, heard the pleas.
He agonized, as others in similar positions have subsequently done. “If I do
nothing,” Goschen confided to his
diary, “and the crash comes, I shall
never be forgiven: if I act and disaster
never occurs, Parliament would never
forgive my having pledged the
National credit to a private Firm.”
Perhaps the difference today is
that the national credit is increasingly
pledged to the private firms judged
“too big to fail.” In Goschen’s day, the
value of money was fixed; prices and
wages had to adapt to the changing
economic and financial circumstances.
In our own day, the value of money is
variable; the Old Lady, along with
almost every other major central
bank, seeks to manipulate its value to
stabilize (or revitalize or retard, as
the case may be) economic growth or
stock and bond prices.
Unanchored exchange rates, radical monetary nostrums, the lowest
interest rates in recorded history,
central-bank management by doctors
of economics: When you stop to
consider what money, and the institutions of money, have become, you
look back with renewed respect at
the foreboding of the London goldsmiths of 1694. They caught a
glimpse of monetary modernity, and
they didn’t like it one bit.
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Exchange and bawled out the new
rate to the expectant crowd.
We read, too, the words of gruff,
sage Walter Cunliffe, the bank’s governor at the start of World War I, on
how to nip a financial panic in the
bud: “Meet the situation like lions,”
which is to say no half-measures. We
watch the gold pound turn to paper in
1931—gold convertibility ends—and
the bank get nationalized in 1946.
Come next the repeated devaluations,
multiple schemes to control bank
lending and endless talk that characterize the modern age. The financier
George Soros, for one, cheered the
devaluations. He made a king’s ransom on the sterling pratfall of 1992.
“Till Time’s Last Sand” is a long
book—you lift it with alarm. To your
relief, Mr. Kynaston makes the pages
turn with his focus on the human side
of things. A master of historical
detail, he was the bank’s designated
biographer, a status that gave him
free run of the Old Lady’s archives.
The title—“Till Time’s Last
Sand”—is a phrase plucked from a
poem commemorating Michael Godfrey, a progenitor of the bank who
lost his head to a cannonball in 1695
while serving in Flanders on a
mission to pay the English troops
fighting there. The lovely words evoke
permanence, though even they cannot
gloss the pound’s chronic loss of
purchasing power.
Mr. Kynaston’s stylistic signature is
the extended quotation. Most of the
passages he presents—like the excerpt
from a 1906 speech at the Ritz hotel to
illustrate the club-like atmospherics of
the London banking scene—serve their
purpose. At one point he offers up a
lengthy excerpt from Montagu Norman
that he extracts to show that the
quotation is nearly unintelligible. It is
certainly that, though we could have
taken Mr. Kynaston’s word for it.
Human beings are not at their best
around money. It seems to destabilize
them. Credit—the promise to pay
no
‘WE HAVE appointed you as our economics adviser,” Montagu Norman,
the longest-serving governor of the
Bank of England, said to a brainy new
hire in the early 1930s. “Let me tell
you that you are not here to tell us
what to do, but to explain to us why
we have done it.”
“Why?” is the question, all right.
Not long after the founding of the
bank in 1694, the gold value of the
pound sterling was set at slightly less
than £4 an ounce. In the early 1930s
that value came unstuck. Today it
stands at £935 an ounce, a devaluation asymptotically approaching
100%. Reading David Kynaston’s
sweeping narrative, you may wonder
if the supposed progress of monetary
science has not been a case of radical
retrogression.
In its glory days, the Bank of
England—known far and wide as the
Old Lady of Threadneedle Street, an
allusion to both her London address
and tut-tutting personality—was a
stockholder-owned institution under
the leadership of a governor, a deputy
governor and a 24-man board of
directors (called a “court”). She took
deposits, made loans and financed
wars. None of the directors was an
economist. None was a banker. It was
merchants—businessmen—who looked
after the pound sterling.
Not that the pound needed much
looking after. Gold coins circulated as
money. So, too, did bank notes representing gold coins. The paper was
convertible into the metal, and the
metal into paper, both at the fixed and
inviolable rate of £3.89 (in today’s
decimalized sterling). Gold freely
entered and left the country. Low
prices attracted it (bargains have that
magnetic power); high prices repelled
it. It was the market, then, that determined the size of the money supply. In
the 100 years between the Napoleonic
wars and the guns of August 1914—an
age not to be confused with heaven on
earth but, for England, a mostly
peaceful and mostly prosperous one—
the bank did its least damage.
Mr. Kynaston’s history starts at the
17th-century
founding—much
resented by the London goldsmiths,
who had a well-considered premonition about a governmental banking
monopoly—and concludes in 2013, in
the still-wobbly aftermath of the
2008 financial crisis. In between, we
catch a glimpse of the South Sea Bubble of 1720 and of the 20-year suspension of gold convertibility during the
long war with Revolutionary France,
during which a rash of forgeries of
bank notes, a capital crime, led to a
shocking number of hangings. We
likewise catch a glimpse of the tedium
of clerical labor in the steel-pen age
(“look busy anyway” the bosses
admonished), of life at the bank during the Blitz (“only cold lunch available”) and of the manner in which
changes in the bank’s lending rate
were communicated to the market as
late as the 1950s: The Bank’s broker,
doffing his top hat, climbed up on the
customary bench at the Stock
GETTY IMAGES
BY JAMES GRANT
Indra Nooyi
discovered ‘Radical
Technologies.’
to be transformed into a
slab of heavy wave that
curls precariously over the author’s
cranium as he shoots through the
barrel, narrowly escaping death or
extreme bodily harm, could be the
ultimate metaphor for the reader’s
life. Mind you, this reader’s “ride”
entailed driving a 1989 Ford
Probe—in August, through traffic,
with no working air-conditioning—
from culinary school in West Palm
Beach, Fla., to his coveted position
flipping burgers in Boca Raton. Mr.
Finnegan’s beautiful book will have
readers adjusting their outlook on
the life that they’ve lived, the life
they’ve yearned for and perhaps
Francis Spufford
I read Sarah Perry’s darkly glittering
neo-Victorian wonder of a novel
“The Essex Serpent” last year, but it
came out this year in the U.S., which
gives me the chance to enthuse all
over again. About a late-19thcentury encounter in the marshes of
the River Thames between a fossilhunting atheist widow and a parish
priest trying to stop his flock from
panicking about the rumors of a
monster in the water, “The Essex
Serpent” offers something far richer
and more interesting than a stereotyped clash between faith and reason: a mutual captivation, erotic and
intellectual, in which the strangely
familiar issues of a past world have
a conversation of their own with the
present day. Meanwhile, in 2017, I
was happily helpless in the grip of
Megan Whalen Turner’s “Thick as
Thieves,” the latest in an extraordinary young-adult series that somehow plays a new trick with viewpoint in every book. This one is
about a slave’s reluctant escape
across an ancient, desiccated empire—but the place to start is at the
beginning of the series, in the happy
A history of the Bank of
England, from its founding
in 1694 to the financially
turbulent present.
the value of the currency under its
management by 2% a year. We have
come a long way since William
Huskisson, in 1822, addressing his
fellow members of Parliament about
their desire to cheapen the pound
rather than return to the value established before the long war with
France, said that “once you lower
your standard, it will become a precedent that will be resorted to on every
future emergency or temporary
pressure.” The past 100 years have
made Huskisson a prophet.
Monetary fashions may change,
but people remain the same, as Mr.
Kynaston’s history reminds us. In all
times, a great and wealthy banker
who runs his eminent institution into
the ground turns to the government
(or to the government’s bank) for
help. Sometimes the authorities turn
their backs, as was they did to the
wholesale bill dealer Overend Gurney,
which crashed in 1866 (or, in the U.S.,
Maya Jasanoff
explored ‘The
Written World.’
pointed with a toymaker’s
perfectionism.
—Mr. Spufford is the author of
“Golden Hill” and “True Stories
and Other Essays.”
John B. Taylor
“What’s past is prologue,” says the
Bard, and there’s no more rewarding
way to prepare for upcoming political wars on entitlement reform and
international trade than to study the
past with John F. Cogan’s “The High
Cost of Good Intentions” and Douglas A. Irwin’s “Clashing Over Commerce,” the definitive histories of
entitlements and trade, respectively.
Mr. Grant, the editor of Grant’s
Interest Rate Observer, is writing
a life of Walter Bagehot.
Both books are massive and fascinating; they cover the entire contentious U.S. history from the founding
to now. Mr. Cogan shows how entitlements—from public pensions
following the Revolutionary War to
Social Security today—grew relentlessly with crucial interludes of
reform. He explains that entitlement
programs always seem to start with
tight requirements and few
eligible recipients, but then
expand as requirements are
loosened. Mr. Irwin traces
the politics of U.S. trade
policy, including the “restriction” era, which culminated in the Smoot-Hawley
tariff and the Great Depression of the 1930s, and the
post-World War II “reciprocity” era, which worked
to slash tariffs and other trade
barriers. If we are not complacent,
Mr. Irwin argues, “the reciprocity
period will continue,” notwithstanding recent elections. And we can
achieve needed entitlement reform,
Mr. Cogan argues, with leadership,
general agreement and bipartisanship.
—Mr. Taylor, a professor of
economics at Stanford University,
previously served as under
secretary of the Treasury for
international affairs.
Continued on page C14
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C14 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
BOOKS OF THE YEAR
What’s Written
In the Wind
How to Read Nature
By Tristan Gooley
The Experiment, 168 pages, $16.95
CELESTIAL SHOW The Southern Lights over the IceCube Neutrino Observatory at Amundsen-Scott South Pole Station.
A New Astronomy
An observatory built
not to view the stars but
to detect extraterrestrial
subatomic particles.
“The Telescope in the Ice: Inventing a New Astronomy at the South
Pole,” by physicist-writer Mark
Bowen, is the story of the global
collaboration that created and operates Antarctica’s IceCube Neutrino
Observatory. The unconventional
instrument, completed on time and on
budget in December 2010, comprises
some 5,000 ultrasensitive light detectors drilled a mile down into the polar
ice. This frigid matrix is nature’s
clearest substance, surpassing even
diamond in its ability to transmit
light. In the Stygian gloom, such clarity allows the detectors to pick up the
exceedingly faint blue flickers that
signal the rare interactions of neutrinos with the ice.
The crucial features of IceCube are
its size—a cubic kilometer—and the
three-dimensional arrangement of its
photosensors, which together allow
IceCube to determine the direction, if
not the specific source, from which a
gust of neutrinos originates. Perhaps
the strangest operational aspect of
IceCube is that it is designed to detect
neutrinos emanating from Earth’s
northern sky, after the particles have
traversed the entire body of our
planet. Earth filters out unwanted
particles and passes IceCube’s quarry:
ultra-high-energy neutrinos originat-
no
IN DECEMBER 1930, physicist Wolfgang Pauli sent his colleagues a letter
that began, “Dear Radioactive Ladies
and Gentlemen,” in which he postulated the existence of a nearly massless, electrically neutral particle: the
neutrino. This conjecture was, he
admitted, a “desperate remedy” to a
troubling inconsistency in the radioactive decay of atomic nuclei. At stake
was the very validity of the law of energy conservation, one of the bedrock
principles of physics. Not until 1956
was Pauli’s hypothesized particle
finally spotted, by Frederick Reines
and Clyde Cowan at the Savannah
River nuclear reactor in South Carolina. As for why he had undertaken
the search, Reines remarked: “Because
everybody said, you couldn’t do it.”
Neutrinos are the most nonreactive
of subatomic particles, breezing their
way through seemingly impenetrable
barriers. Nobel Prize-winning physicist Leon Lederman described neutrinos as “barely a fact,” while others
have labeled them ghost particles.
Billions of these peewee interlopers,
most originating in Earth’s atmosphere or the sun’s core, pass through
our bodies every second, yet the odds
of an interior collision are remote. A
neutrino can easily transect a million
Earths, all lined up in a row. And
therein lies the challenge of any
research venture based on neutrino
counts. Only rarely does a neutrino
strike an obstructing crumb of matter,
and even then the observable consequence is a brief glimmer of blue light
(known as Cherenkov radiation). At
the outset, neutrino detection seemed
to be a scientific snipe hunt. But technology has overcome the neutrino’s
aversive nature and opened up a new
window onto the universe.
Astronomers have long surveyed
the celestial landscape by capturing
and analyzing forms of radiant energy,
such as visible light, radio waves and
X-rays. But photons are only one mediator of extraterrestrial information.
Today a host of sci-fi-worthy gizmos
monitor the incessant deluge of cosmic
particles as well as the intermittent
quiver of gravity waves washing over
our planet. These photon-alternatives,
key components of so-called multimessenger astronomy, have given us
entry to once-inaccessible regions of
the universe, from the depths of the
sun to the fringes of black holes.
Michael Twitty
After wrestling in my own
writing with the themes of food,
history and race, you might think
I would want a break in my
reading in favor of lighter fare.
This year did not afford
me that possibility. John
T. Edge’s “The Potlikker
Papers: A Food History of
the Modern South”
represents a radical break
in the literature on
Southern food. It
documents an
increasingly multicultural
South and its continuing
struggles with race,
gender, sexuality and
immigration. Kelley Fanto Deetz’s
“Bound to the Fire: How
Virginia’s Enslaved Cooks Helped
Invent American Cuisine” gives a
laser-focused treatment of the
relationship between enslaved
cooks and the development of
Virginia’s plantation cuisines and,
in turn, American food—with just
a touch of archaeology. Some of
the deepest revelations have
come from Sean Sherman, whose
long-awaited “The Sioux Chef’s
Indigenous Kitchen” is helping
Open all five senses to
nature and you’ll find you
can taste direction, hear
weather, even smell time.
appearance of certain birdsongs and
the flowering of different plants—he
gives an example from our own
species, noting that some women
“assert that a flower does not look
equally beautiful at all times of the
month.”
Among Mr. Gooley’s how-to instructions, some, like finding the
North Star using the Big Dipper are
skills known to most tenderfeet.
Others, like finding south by extending a line drawn from the tips of a
crescent moon down to the horizon,
or using the side of a tree where its
branches are most horizontal, are not
so widely known.
To Mr. Gooley, reading nature reveals layers within layers of connection and fascination. “It would be
hard to find a record of a person
whose deathbed regret was taking too
great an interest in their surroundings,” he writes. He leaves us with the
shining insight that although it’s expected that we find “wonder in a vast
mountain landscape,” and “a more
serious challenge” to find it in a hill,
“it is a great achievement to find it in
a molehill.”
decolonized indigenous cuisine
take it’s rightful place in the
movement to build authentic,
healthy American foodways that
honor First Nations as the
foundation cuisine from which
our sense of what is truly
“American” really
derives.
Kareem AbdulJabbar relished
‘EightYearsinPower.’
—Mr. Twitty is a culinary
historian and the author of “The
Cooking Gene.”
Gabrielle Union
Robinne Lee’s “The Idea of You”
is a beautifully written pageturner about an unexpected love
between a divorced 39-year-old
art dealer and a 20-year-old
boy-band member. It’s smart and
sexy and takes on ageism, sexism and motherhood in very
moving and honest ways. Underneath it all, the book tackles the
darker side of celebrity with the
insight of someone who has
Mr. Crouch is the author of “The
Bonanza King: John Mackay and
the Battle Over the Greatest
Fortune in the American West,”
out next year.
Mr. Hirshfeld, a professor of
physics at UMass Dartmouth, is
the author of “Starlight Detectives:
How Astronomers, Inventors, and
Eccentrics Discovered the Modern
Universe.”
clearly spent time in that world.
After mourning the characters
and the epic romance of “The
Idea of You,” I was introduced
to Tia Williams’s “The Perfect
Find” and fell back in love. The
New York fashion industry is the
perfect playground for this
deliciously funny romantic
romp. The book explores the
idea of what “happily ever
after” is supposed to look like
and reimagines our ideas about
what joy can be for women. As I
continued my personal
evolution, I read Roxane Gay’s
“Difficult Women.” It showed me
the beautiful, complicated,
messy truths that exist in me
and all women. Through the
book, I gave myself permission
to see my own value and worth
with clear eyes. It was truly a
revelatory work that changed
the course of my life.
—Ms. Union is an actor, activist
and the author of “We’re Going to
Need More Wine.”
CoCo Vandeweghe
September 11 holds a significant
place in my heart, not only
GETTY IMAGES
BY ALAN HIRSHFELD
ing outside the solar system, from
exploding stars, hyperactive galaxies
or other cosmic powerhouses.
Although chockablock with technical details, “The Telescope in the Ice”
is richly intimate, drawing on Mr.
Bowen’s long involvement with the
IceCube project and its participants.
(He learned about the proposed project in 1997 atop a snow-capped peak
in Bolivia, while reporting on a team
of ice-core-drilling paleoclimatologists.) Human emotions are palpable
in the author’s you-are-there framing.
The drilling of ice holes, for example,
becomes a nail-biting contest between
brute force and finesse, the team (and
the reader) ever alert to the mechanical shudder that precedes calamity.
All this in a windswept, snowbound
wasteland. Is there any keener expression of scientists’ dedication to the
pursuit of knowledge?
Mr. Bowen acknowledges the business and public-relations side of
today’s Big Science: News releases,
interviews and advocacy are obligatory adjuncts to the research. He also
digs deeply into the social dimensions
of collaborative science, especially the
sort conducted in forbidding environments like Antarctica or outer space.
IceCube requires a lavish team of
researchers, student assistants, engineers and computer experts, along
with helicopter pilots, galley cooks,
ice drillers and septic-tank pumpers,
all of whom must operate as a unified
organism. At the Pole, the dual imperatives of science and survival flatten
the social hierarchy. Even the project’s
nominal major-domo, the principal investigator, is totally dependent on the
ancillary employees. To the PI, failure
is the albatross that hangs around
one’s professional neck. The PI in this
case is Francis Halzen, of the University of Wisconsin, an “oracular” presence, Mr. Bowen tells us, whose formidable intellect gushes forth in
scientific forums: “Ideas splashed
across his mind so fast that his mouth
couldn’t keep up.”
The story’s ending, although a
happy one from the scientific perspective—the sought-after neutrinos are
found—has a poignancy as the project’s old guard retire or attend the
funerals of their colleagues. Success at
a decades-long endeavor must serve
as their consolation, knowing that the
icebound eye they helped create still
watches over the heavens.
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By Mark Bowen
St. Martin’s, 424 pages, $27.99
Initially, neutrinos offered astronomers the opportunity to “peer
through” the sun’s opaque gases into
its fiery innards. Unlike photons,
which take up to a million years to
make their way out of the sun, neutrinos birthed in the sun’s core arrive at
Earth some 8½ minutes later. The
first neutrino “telescope,” a 100,000gallon vat of perchloroethylene (drycleaning fluid), dates to the late 1960s
and sat a mile underground in the
Homestake Gold Mine in Lead, S.D.,
where it would be shielded from cosmic-ray particles. But the measly
number of neutrinos it detected was
far short of that predicted by the
accepted theory of solar energy production. This discrepancy became
known as the “Neutrino Problem.”
Subsequent study revealed that neutrinos come in a variety of subspecies,
only one of which had been tallied at
Homestake. With that, solar-energy
theory was vindicated, and neutrino
astronomy took off.
n-
The Telescope in the Ice
BRITISH AUTHOR and adventurer
Tristan Gooley learned to pay keen
attention to the natural world out of
both passion and necessity. He has led
expeditions on five continents,
climbed mountains on three of them
and is the only person alive who has
both flown solo across the Atlantic
and sailed it singlehandedly. To share
that experience, Mr. Gooley runs a
school of natural navigation, teaching
people how to find their way through
the wilderness without recourse to
map, compass or GPS, using only the
cues and clues provided by the sun,
moon, stars, weather, plants and animals. Careful observations are crucial,
and Mr. Gooley has several books
about natural signs and navigation.
His latest, “How to Read Nature:
Awaken Your Senses to the Outdoors
You’ve Never Noticed,” is his latest
offering in that vein. It’s a quick
read—168 pages interspersed with
photographs and illustrations. Mr.
Gooley’s aim is to inspire his readers
to open their senses to the joys of
“reading nature” and impart a few
techniques of natural-world awareness. Those who cultivate “a deeper
connection” with their surroundings,
he says, will evolve into “more interesting and effective” people. His book
is about equal parts alfresco inspiration, interesting factoids, how-to
instructions and self-help advice.
Mr. Gooley begins by tarting up
staid nature, reminding us that “every
single thing that we have found interesting up to this point in our lives”
has “roots” in the natural world, especially “sex and violence.” To open
our senses to the competitive drama
of reproduction and survival that is
constantly unfolding around us, Mr.
Gooley suggests a series of 15 exercises. Some are simple, such as recording everything you hear in one
minute outdoors; or taking 10 breaths
through your nostrils with your eyes
closed while indoors, then repeating
the drill outside and noting the differences. (If you can’t find the time to do
that, Mr. Gooley thinks “your mind is
very busy convincing you that you are
so very busy that breathing is not an
important exercise.”) Other drills, like
sketching a tree or having one person
lead a group on a walk and having
each person sketch the route afterward, require more commitment.
Mr. Gooley’s aim is to focus and
heighten our awareness of the natu-
ly
.
IAN REES, ICECUBE/NSF
BY GREGORY CROUCH
ral world, to hone our ability to “see”
with all our senses, though the
author sometimes colors our vision
by bringing our minds back to sex
and violence. That pretty flower
you’re looking at? It’s a “sex machine,
whoring itself to the bees,” he writes.
He shares the not-necessarily-comforting observation that, “our species
is not alone in finding sex of overwhelming interest.” He also tells
about British ghost orchids that vanish for decades before making brief
reappearances, making them among
the rarest of natural phenomena. As
an example of our planet’s extraordinary diversity of life and what we
don’t know about our home, he cites
a 1995 study that found 1,200 species
of beetles living in a group of 19 Panamanian trees—960 of the species
previously unknown to science. On
the topic of natural calendars—equinoxes and solstices, the budding and
yellowing of leaves, the annual
because I’m a native New Yorker
but because it kick-started my
personal pursuit to represent
the right values and character as
a patriot and to care for this
country in everything I do.
That’s why Tom Rinaldi’s “The
Red Bandanna: A Life, a
Choice, a Legacy” moved
Laura Alber
dug into ‘The
Disruptors’ Feast.’
me so much. The book is
about Welles Crowther’s
extraordinary selflessness in the
aftermath of the September 11
attack. It’s named for the
crimson cloth Crowther’s father
had given him when he was a
boy, and which he kept with him
every day after. In the days
following the attack, Crowther’s
family could find no sign of him,
but soon they began hearing stories of a stranger who had
charged back into the burning
buildings and pulled survivors
out of the flames—a stranger
wearing a red bandanna.
Crowther had driven himself
through that remarkable
challenge with no one to lean on
but himself and the courage to
live up to who he always wanted
to be. In the end he sacrificed
himself for others. This
constantly reminds me
that there are always
very real opportunities
for us to truly affect the
lives of those around us.
Mr. Rinaldi’s “The Red
Bandanna” helped me
understand that and ask
myself, “How can I really
make a profound
difference?”
—Ms. Vandeweghe is a
professional tennis player.
Loudon Wainwright III
The great journalist Lillian Ross
died in September, just shy of
her 100th birthday. For years I’d
heard about her masterpiece,
“Picture,” and having recently
read it I must agree with Ernest
Hemingway’s blurb: “Much
better than most novels.” It’s an
engrossing, riotous account of
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.
Saturday/Sunday, December 16 - 17, 2017 | C15
* * * *
BOOKS OF THE YEAR
The Mind That Harnessed the Atom
which was the first step toward
making an atomic bomb. The reactor
went “critical”—the chain reaction
became self-sustaining—on Dec. 2,
1942, a breakthrough that convinced
people who knew of it that an
atomic bomb was inevitable.
In 1943, the Los Alamos site was
opened, and Fermi, his wife and two
children were among the early inhabitants. Much later, his wife,
Laura, wrote a delightful memoir
called “Atoms in the Family.” Fermi
witnessed the Trinity atomic test at
Alamogordo, N.M., on July 16, 1945,
and estimated the bomb’s yield by
dropping bits of paper as the supersonic shock wave went by and
watching how far they were blown.
After the war, Fermi became involved in the committees that ad-
The Last Man
Who Knew Everything
By David N. Schwartz
Basic, 453 pages, $35
BY JEREMY BERNSTEIN
A life of the enigmatic
Enrico Fermi—physicist,
teacher, mentor and
‘father of the nuclear age.’
the making and unmaking of
John Huston’s 1951 film, “The
Red Badge of Courage,” based on
Stephen Crane’s Civil War novel.
Ross offers up a gadfly-on-thewall look at just how badly
Hollywood can mess with a
director and screw up his movie.
Until this year I’d never read
anything by Peter Matthiessen,
but I’m almost finished
with his eloquent 1986
“Men’s Lives,” about the
then-dying, now
virtually extinct breed of
Eastern Long Island fishermen. As a recreational
swimmer and sailor in
Gardiners Bay, I have a
new respect and
appreciation for those
who somehow managed
to make a living in and on those
very waters. I also love something brand new, this time from
the fevered, madcap mind and
pen of writer and cartoonist Roz
Chast. It’s called “Going Into
Town: A Love Letter to New
York.” This book will delight
anyone, but especially those of
us who recall the look and feel
of subway tokens and also
ly
.
vised the government on nuclear energy. He was one of the signers of a
vigorous objection to the building of
the hydrogen bomb that the called
the device “necessarily an evil thing
in any light” whose “very existence”
was a “danger to humanity as a
whole.” The plea was ignored by
President Truman, and Fermi, oddly,
continued to work on the hydrogenbomb project.
Fermi had by this time returned
to the University of Chicago, where
his list of students became legendary. Three of them won the Nobel
Prize. One odd fact that I had not
known was his reaction to the loyalty oath that the University of California required beginning in 1949.
Many physicists refused to sign it
and left California. Fermi made it
clear that, had he been teaching at
the university, he would have signed
the oath so as to keep on doing
physics. By the way, Mr. Schwartz
refers several times to Fermi’s thick
Italian accent. The only time I heard
him speak at length was at Harvard
in the early 1950s, where he gave a
little lecture to a small group of us.
I don’t remember an accent, but so
many of my professors had accents
that maybe I just didn’t notice.
By the summer of 1954 it was
clear to people who saw him that
Fermi was terribly ill. After a preliminary surgery that fall he was
told that he had about six months to
live. He died at home of stomach
cancer on Nov. 28, 1954. Those who
visited him during this time were
moved to tears by his stoicism. Mr.
Schwartz quotes the physicist Eugene Wigner’s description of Fermi
as “so composed by death’s approach he seemed superhuman.”
Finally, what are we to make of
Mr. Schwartz’s book? Much of it I
admire and much I don’t. I have
spared the reader a detailed analysis
of the scientific mistakes that any
competent physicist could have
spotted. I have focused on a few of
the mistakes that anyone with
Google might have found. I recommend “The Pope of Physics” by Gino
Segrè and Bettina Hoerlin for a scientifically accurate biography.
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REACTION SHOT Fermi in his laboratory ca. 1938.
correctly identifies Noddack as a
physicist. Perhaps if she had been a
physicist she would have asked more
questions—such as how the process
she was suggesting could conserve
energy, a basic requirement of physics. She proposed that the neutron,
rather than being absorbed to form
anucleus heavier than the original
uranium, had broken up the uranium
nucleus “into several large fragments.” Indeed, fission involves the
cleaving of the nucleus into two
large fragments. Noddack’s suggestion was rejected at first because it
seemed to violate the conservationof-energy requirement and because
she proposed no mechanism by
which the process could take place.
That such a process could conserve
energy was first explained in December 1938 by Lise Meitner and her
nephew Otto Frisch. This followed
an experimental discovery by the
German radiochemist Otto Hahn and
his younger associate Fritz Strassmann.
Mr. Schwartz misstates this discovery. He writes that “Hahn and
Strassmann came to a shocking conclusion: there were no transuranic
elements at all in the by-products of
neutron bombardment of uranium.
The by-products were, instead, much
lighter elements, barium and krypton.” But Hahn and Strassmann
knew nothing about krypton. As an
inert gas, it simply floated unde-
tected out of their apparatus. Moreover, even when the mechanism of
fission was explained, Hahn at first
proposed the wrong by-product.
In any event, one can be grateful
that Fermi did not discover fission
in 1934. The race to build the bomb
would have begun then, and the U.S.
probably would have lost. One has
only to look at the list of émigré scientists, including Fermi, who were
working on the Manhattan Project at
Los Alamos, N.M.
The last third of the book—by far
the best part—deals with Fermi in
America, covering his time at Columbia University, Los Alamos and
then the University of Chicago.
Fermi had offers from American universities before receiving the Nobel
in 1938. He might have taken one,
but his wife was vehemently opposed to leaving Rome. Whatever he
may have thought about Mussolini,
the only thing that mattered to him
was his physics, and for that he
joined the Fascist Party. By 1938
there were anti-Semitic edicts in Italy, and it was clear that he had to
leave with his wife, who was Jewish.
The Nobel Prize gave him the perfect out. He could travel to Stockholm with his family, accept the
prize with its large cash award and
keep on going—which he did, accepting a position at Columbia. It
was there that he began his work on
constructing a nuclear reactor,
appreciate the amazing variety
of standing pipes.
—Mr. Wainwright is a singersongwriter, actor and the author
of the memoir “Liner Notes.”
thought-provoking book is the
death of Louis Till, Emmett Till’s
father, who was executed by the
U.S. Army at the end of World War
II. The absence of a father in
Emmett Till’s story had pretty
much gone unnoticed for the halfcentury since his murder in my
home state of Mississippi. The
ease with which we’ve accepted
that Emmett Till was fatherless—
the fact that we haven’t even
considered his father’s existence—
speaks to how comfortable we all
are with the idea of absent black
fathers. But Mr. Wideman isn’t
comfortable with this idea, and he
tears it apart as he tries to
understand Louis Till, himself, his
own father, why Louis was
executed, how Emmett’s life might
have been different if he’d had a
father. It’s a stirring and incredibly
beautiful book, heartbreaking and
enlightening. I know that I will
read it again and again.
—Ms. Ward is the author, most
recently, of “Sing, Unburied, Sing.”
quilter—and, by his own account, a
cold, charismatic, crazy quilt
herself—than with “You Don’t
Have To Say You Love Me,” a
beautiful collection of passages
that hint at some unifying pattern
within their motifs of anger,
mythical salmon, intergenerational
trauma, basketball lore, ironic (and
deep) injustices, siblings,
incomprehensible grief, a
pinch of uranium dust and
n-
(the process in which an atom splits
into two lighter ones while releasing
energy). After Fermi returned to Italy from Göttingen he was able to
set up a group of brilliant young scientists in Rome. The neutron was
discovered in 1932, and the group
turned its attention to bombarding
various elements with neutrons,
eventually coming to uranium.
Fermi had a clear idea of what he
expected to find. He thought that
once the uranium absorbed a neutron, new isotopes would be created.
These isotopes would be radioactive
and would decay into hitherto unobserved elements farther up the periodic table than uranium. Fermi and
his colleagues were having trouble
with excessive radiation interference, so they introduced extra
shielding. This had the unintended
effect of blocking something they
didn’t expect to see—fission fragments. They did find what they expected to see, new kinds of radiation, which they claimed came from
the new elements that Fermi had
predicted. Indeed, he published a paper describing his discovery of
“transuranic” elements, which was
one of the achievements for which
he was awarded the Nobel Prize in
1938.
Not long afterward, however, a
chemist named Ida Noddack published a brief note in which she took
issue with Fermi. Mr. Schwartz in-
no
IN BIOGRAPHIES of physicists I see
two limiting cases. There are a few
physicists, such as Newton, whose
science is almost a given, allowing
one to focus on the life. Two examples are the standard Newton biography, “Never at Rest” by Richard
Westfall, a historian, and “Einstein
in Love,” by Dennis Overbye, a journalist. The other extreme is a study
that concentrates on the physics—
the life being almost an auxiliary, as
in Abraham Pais’s biography of Einstein, “Subtle Is the Lord.” What do
you do with someone who has almost no life outside of his physics?
Can such a biography be written
successfully by a non-physicist? This
is the question I was constantly asking myself as I read a biography of
Enrico Fermi titled “The Last Man
Who Knew Everything” by the political scientist David N. Schwartz.
Fermi was born in Rome in 1901.
His father was an important official
in the Italian railroads, so the family
was relatively prosperous. He had an
older brother and sister. Fermi was
especially close to his brother, Giulio, only a year his senior, and was
deeply affected by Giulio’s death in
1915, the result of what appears to
have been medical malpractice.
Fermi showed his mathematical abilities while still very young. (I always
ask physicists I know who are gifted
mathematicians what their first
mathematical memories are. Freeman Dyson told me that when he
was being put down for naps he began adding 1 + ½ + ¼ . . . and realized that the series was converging
to 2. Hans Bethe told me how, as a
child, he marveled at the fact that
the reciprocal of a large number was
a small one.)
By the time Fermi was a teenager
his abilities had become obvious to
others. When he was 13, a colleague
of his father’s lent him one of his old
university textbooks. Fermi, Mr.
Schwartz writes, returned it in two
months, having “worked through all
of the theorems and solved all the
problems at the back of the book.”
By the time he graduated from college, in 1922, he had published three
papers, including one on the mathematics of Einstein’s theory of gravity
that contains ideas still used today.
He then went to Göttingen in Germany for what turned out to be a
very unhappy year working in a
group centered on the eminent physicist Max Born. He felt that no one
there took any interest in him—perhaps, Mr. Schwartz suggests, because the work-obsessed Fermi
spent little time socializing.
Up to this point, Mr. Schwartz’s
book seems error-free, but then the
trouble starts. The Dutch physicist
Hendrik Lorentz is incorrectly identified as an “astrophysicist,” and
Einstein is wrongly given credit for
introducing the name “photon.”
Later the physicist William Zachariasen is identified as Walter Zachariasen. More significant, the account
of the discovery of nuclear fission, a
central event in the book, is badly
mangled. This is important because
one of the few failures in Fermi’s career was his failure to find fission
Jesmyn Ward
John Edgar Wideman and I share
an editor, and she sent me a copy
of his most recent book,
“Writing to Save a Life:
Amy Klobuchar
got to know
‘Personal History.’
The Louis Till File.” I’ve
been reading and admiring
Mr. Wideman for a long time. In
fact, one of his often-anthologized
stories, “Weight,” helped me
understand that there might be
room for my voice in the world of
books. “Writing to Save a Life”
reflects the concerns of an older
writer, a man looking back on his
life and the lives of his family and
his people: black people. The
frame for this thoughtful and
Dar Williams
What better way for Sherman
Alexie to write about his mother, a
John Taylor fretted
over ‘The High Cost
of Good Intentions.’
more unreconciled grief.
Mr. Alexie avoids melodrama throughout, of course. At
one point he writes, simply, “It’s a
morbid thought. But it’s not inaccurate.” What he patches together
are the stories that have wrung
true sentiment from any temptation of sentimentality. Each color
shines in its clarity without excess
or self-flattering omissions (make
sure to read the chapter titled
“Scatological” out loud to your
Mr. Bernstein’s most recent book,
“A Bouquet for Dyson,” will be
published early next year.
friends), and therein lies the
honest brilliance of this memoir.
—Ms. Williams is a singersongwriter.
John Zimmer
Often the simplest reminders are
the most important and
influential. I’ve always believed
that the happiest moments in life are those
when we feel most
connected to family,
friends and the
community around us.
Sebastian Junger’s
“Tribe: On Homecoming
and Belonging” does an
excellent job highlighting
how we need to reclaim
our sense of true
community, and shows how
societies define themselves and
thrive when they share a common
purpose. In times of increasing
complexity and technology, we
have to double down on our
humanity and stay intimately
connected—in person, not
online—to the people around us.
—Mr. Zimmer is the co-founder
and president of Lyft Inc.
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.
C16 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
BOOKS OF THE YEAR
FIVE BEST: A PERSONAL CHOICE
GETTY IMAGES
Jane Kamensky
on rescuing the Me Decade
LONE STAR LANDSCAPE Donald Judd’s ‘15 Untitled Works in Concrete’ (detail).
As a remote tourist spot
for the arts-loving elite,
could Marfa be another
Santa Fe in the making?
MS. KAMENSKY’S most recent
book is ‘A Revolution in Color: The
World of John Singleton Copley.’
Sexual Behavior
in the 1970s
By Morton Hunt (1974)
3
IN 1972, a decree went forth
from the Playboy Foundation
that a sexual census should be
taken. The foundation, an organ of
Hugh Hefner’s sprawling media
empire, championed the liberalization of sex, speech and drug laws. It
commissioned a marketing firm to
design a survey that would update
Alfred Kinsey’s world-shaking postwar volumes. Pop psychologist
Morton Hunt wrote up the results,
distilling thousands of IBM punch
cards coding 2,026 completed
questionnaires and 200 follow-up
interviews. Across all categories of
respondents, the survey revealed “a
dramatic shift toward permissiveness” on topics ranging from
masturbation and divorce to homosexuality and abortion. The “average
American now holds many opinions
about sex that a generation ago
were rarely held by any but highly
educated big-city sophisticates and
bohemians,” Hunt crows. For him
and for Playboy, the shift in attitudes demonstrated the victory of
modernity over Puritanism. Some of
the survey respondents sound less
sure. “I guess I’m not as loose as I’d
like to be,” a “young divorcée”
demurs. Freedom wasn’t always
quite so free.
women’s liberation. A high-school
heartthrob, she glories in being
desirable, yet struggles to find
authentic desire. Though her sexual
knowledge is limited to what’s “pictured on the diagram in the Kotex
box,” young Sasha senses that her
body is her currency. She spends it
strategically and with uncertain
returns. “If I asked for it, I thought,
maybe I could control it,” she recalls. Winning control takes decades.
A feckless boyfriend whittles away
her virginity; a boss harasses her; a
professor seduces her. Two husbands submerge her ambition in the
service of their careers. Nor are
other women always a source of
support. Advice lit tyrannizes her,
from Seventeen at the beginning of
the tale to Dr. Spock near the end,
when Sasha finally develops “the
muscle for an independent life.”
ly
.
LAST YEAR the New York Times
included Marfa, Texas (pop. 2,000), in
its list of 52 places to see before you
die: No. 48, between Thessaloniki and
Ubud. For art cognoscenti, Marfa has
been a pilgrimage site since the
mid-1980s; this year, an estimated
40,000 people will visit. Very few
others know what it is.
Or where. The slogan on its Visitor
Center: “Tough to get to. Tougher to
explain. But once you get here, you get
it.” Located near Big Bend National
Park, it’s a three-hour drive from either
of the closest commercial airports (El
Paso, Midland/Odessa). You must plan
a trip; you don’t just drop by. And it
owes its fame and success—with the
problems that attend success—to one
man, the artist Donald Judd (1928-94).
To people (including me) who have
visited, Marfa is magical. At its center
is Judd’s work, much of it created as
site-specific installations there.
Kathleen Shafer tells Judd’s story, and
constellating stories about art, history, landscape, weather, the mysterious Marfa lights, economics, sociology
and, of course, real estate. Her book is
an absorbing analysis of, and a love
letter to, a community she has visited
for the past six years. In mostly serviceable, sometimes repetitive, prose,
she tells how Marfa got to be on that
Times list, how it became a “brand”
as well as a mecca for art lovers.
First there was ranching and the
railroad, then the army. After World
War II, when Marfa had a population
of 5,000, the army abandoned its
bases. A seven-year drought ruined the
local herds. The town was heading
toward ghost status. In 1955, it gained
fame as the site of the filming of
“Giant.” The Paisano Hotel, still open
today, was the headquarters. Pictures
of James Dean, Rock Hudson and Elizabeth Taylor line its walls.
Judd was attracted to this landscape. He’d seen it while heading
through West Texas for military service years earlier. After buying a building on Spring Street in Manhattan’s
Soho (1968), Judd also began to acquire property in Marfa, his principal
residence from the mid-1970s until his
death. The Judd Foundation now oversees the artist’s studio, living space,
and library. The Chinati Foundation
supervises the 15 buildings and the
340-acre tract that display the art.
The Nixon Tapes
By Douglas Brinkley & Luke A.
Nichter (2014-15)
Many writers have previously discussed the art. Ms. Shafer now analyzes how Marfa, like any chic, rarefied
destination, may be victimized by its
own success. Some locals fear it could
turn into another Santa Fe, with galleries, restaurants and retail stores that
longtime residents cannot afford to
patronize. Locals worry about real
estate prices and taxes in a community
by and large poor and Hispanic, and
with few other economic resources.
Judd saved the town. Will tourism now
destroy it? That Marfa remains difficult of access means that untrammeled
growth is unlikely. As anyone who has
lived in (fill in the blank: Aspen, Austin, Nantucket, Venice) will attest, you
want the town to be as it was when
you arrived, and then preserved in
amber, with no further modifications.
As the town flourishes, Ms. Shafer
correctly observes, the more it stands
to lose what originally attracted Judd
to it, and what has charmed “every
other native or newcomer who has
lived and witnessed the changes taking
place in Marfa in recent years.”
Stay tuned for further developments.
Mr. Spiegelman’s recent books include “If You See Something, Say
Something: A Writer Looks at Art.”
2
’WE CAN LOSE an election,
but we’re not going to lose
this war, Henry,” Richard
Nixon told Henry Kissinger early in
1971. He had it backward. Vietnam
hangs heavy over “The Nixon
Tapes,” which culls the 3,700 hours
of audio generated by the infamous
voice-activated system that operated in the Oval Office into two taut
volumes. This edition is a major
scholarly achievement and also,
improbably, a page-turner, with the
Memoirs of an
Ex-Prom Queen
By Alix Kates Shulman (1972)
4
GETTY IMAGES
BY WILLARD SPIEGELMAN
1
ON MUGGY BOOGIE nights in
the summer of 1970, a year after
the uprising that followed an
NYPD raid on the Stonewall Inn, a
“surge of brash gay energy” spilled
out of dance clubs from Fire Island
to the Castro. Pretty boys in short
shorts and macho men in leather
shook their groove things to a new
beat, whose “penetrative thump,”
Alice Echols writes, promised a “collective yielding” right there on the
dance floor. Critics later labeled the
new style “discothèque rock.” Most
hated it. Shiny and shallow, disco
thumbed its cocaine-laced nose at
the earnestness of 1960s rock. Ms.
Echols comes to this subject with a
scholar’s acumen and a fan’s
passion. In the ’70s, as a graduate
student, she moonlighted as a DJ at
an Ann Arbor, Mich., disco nestled
“in the heart of sixtiesland,” where
she discovered, beneath disco’s
plastic surfaces, a compelling story
of liberation and its discontents. The
age of Spotify makes it easy to pair
“Hot Stuff” with its soundtrack.
Then try to sit still while reading.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
By Kathleen Shafer
Texas, 196 pages, $24.95
Judd wanted to preserve his work and
to promote the creation of monumental installations by such like-minded
artists as his contemporaries Dan
Flavin and John Chamberlain.
The most memorable parts of Ms.
Shafer’s book are her beautiful evocations of Marfa’s high desert landscape,
its delicate colors, the big sky and dry
air; and of Judd’s art. She admires his
“15 Untitled Works in Concrete,” enormous box-like structures in a field.
Others may prefer his “100 Untitled
Works in Mill Aluminum” that occupy
two artillery sheds on the former Army
base he purchased. Both are variations
on themes, industrial objects of striking splendor. The experience of seeing
them changes according to weather,
time of day and season of year. Judd
famously hated museums for being bad
places to experience art. Looking at his
stacked boxes in a box-like gallery can
be boring, even off-putting. When you
see them on site, or in the West Texas
air, you do, indeed, “get it.”
n-
Marfa
By Alice Echols (2010)
NINA SUBIN
Judd City, Texas
rhythm of poetry, the plot of a soap
opera and characters worthy of
Shakespeare. The president is
coarse and petty by turns. He
loathes the Kennedys and fears
women’s lib. “Show me a girl that
swears and I’ll show you an awful
unattractive person,” he tells H.R.
Haldeman. Yet if his soft skills are
often wanting, Nixon’s grasp of
policy is subtle and firm—as he
knows it must be. A “president is
expected to be intelligent,” he
reminds Mr. Kissinger. Read in 2017,
Nixon sounds downright gifted: a
statesman.
Hot Stuff
CLUB KIDS Infinity, N.Y.C., 1979.
LIKE MANY ’70S productions—think “American
Graffiti” and “Happy Days”—
this feminist Bildungsroman is set in
the 1950s, the time its heroine
Sasha Davis leaves the well-heeled
suburbs of Cleveland to take on the
world. Alix Kates Shulman’s keenly
observed novel mirrors her biography. At the time of its writing, she
was busy toppling the patriarchy in
Manhattan. Ms. Shulman’s Sasha
treks the hard and stony road to
The Seventies
By Bruce Schulman (2001)
5
’MOST AMERICANS regard
the Seventies as an eminently
forgettable decade—an era of
bad clothes, bad hair and bad
music,” historian Bruce Schulman
notes, only to knock down this
straw man in polyester pants.
Probing the links between cultural
trends and political realignments,
Mr. Schulman reveals this “Pinto of
a decade” as a historical turning
point. A new nationwide narcissism
gave rise to perfectionist communes, identity politics and New
Age spirituality. Attention turned
southward as well as inward. The
former Confederacy grew twice as
fast as the nation as a whole.
Sunbelt cities ballooned. Avatars of
this “newest new South” embraced
an ethos of “privatism” not so
unlike the self-seeking of their
counterculture counterparts. By
decade’s end, small-government
conservatism and “family values”
evangelicalism had reshaped birth,
death and much in between. The
election of Ronald Reagan in 1980, a
triumph for some inward-turners,
played as tragedy to others.
no
Best-Selling Books | Week Ended Dec. 10
With data from NPD BookScan
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Garth Brooks/Pearl Records, Inc.
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Corey R. Lewandowski & David N. Bossie /Center Street
How to Instant Pot
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Let Trump Be Trump
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Corey R. Lewandowski & David N. Bossie /Center Street
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Harry Potter...Prisoner/Illustrated
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NPD BookScan gathers point-of-sale book data from
more than 16,000 locations across the U.S.,
representing about 85% of the nation’s book sales.
Print-book data providers include all major
booksellers (now inclusive of Wal-Mart) and Web
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Chip Heath & Dan Heath/Simon & Schuster
—
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.
Saturday/Sunday, December 16 - 17, 2017 | C17
* * * *
REVIEW
MASTERPIECE: ‘BELLE DE JOUR’ (1967), BY LUIS BUÑUEL
‘A FILM,” Orson Welles claimed, “is
a ribbon of dreams.” The director of
“Citizen Kane” was speaking metaphorically: A western or a farce
might be akin to a dream in their
own way. Yet, when it comes to actually depicting dreams on screen,
even the finest filmmakers have a
decidedly mixed record. In “Spellbound” (1945), Alfred Hitchcock
turned a dream sequence over to
Salvador Dalí, but its Surrealist brica-brac—including billowy drapes
with painted-on eyes—fails to evoke
the subtle oddness of real dreams.
Likewise, a dream sequence in Ingmar Bergman’s “Wild Strawberries”
(1957) is too transparently symbolic,
with the central character happening
upon a coffin housing his own zombie-like body.
Arguably, the master of capturing
dreams on film was the Spanish director Luis Buñuel (1900-1983), from
his envelope-pushing short film “Un
Chien Andalou” (1929) to his mature
masterpiece “Belle de Jour,” which
turned 50 this year.
The French-language film—starring Catherine Deneuve as Séverine,
an outwardly genteel newlywed in
Paris who reinvents herself as a
sometime-prostitute—was a coolly
risqué sensation on its release in
1967, garnering the
Golden Lion at the
Venice Film Festival
and accelerating its
leading lady’s status
as a screen icon. Buñuel, with co-writer
Jean-Claude Carrière, adapted a 1928
novel by Joseph Kessel.
Yet “Belle de Jour” endures less
for its scandalous mystique than for
its representation of one woman’s
mind—her dreams, her nightmares,
her flights of fancy. Buñuel’s convincing re-creation of a character’s
subconscious is a rare achievement.
In cinematic terms, Buñuel de-
clines to differentiate
Séverine’s various mental
states. The director does
not indicate dream sequences by tilting the camera or fogging up the lens;
instead, he deploys the
same stable, unobtrusive
visual style for Séverine’s
waking and dreaming lives.
In fact, Buñuel’s pokerfaced approach enhances
the authenticity of his presentation of Séverine’s
subconscious: After all,
dreamers usually perceive
their dreams as reality at
the time.
For example, the opening scene is filmed naturalistically, despite the fact
that it is soon revealed to
have been dreamt up by
Séverine. A horse-drawn
carriage—in the back of
which sit Séverine and her
husband, Pierre (Jean
Sorel), with whom Séverine is discontent—advances
slowly on a country road.
The shots (the brilliant
work of cinematographer
Sacha Vierny) suggest a
CATHERINE DENEUVE as Séverine.
crisp chill in the air and
the aroma of autumn
leaves—physical reality. The sound- speaking gibberish—just as in a
track, too, is realis- dream (or nightmare). Suddenly,
tic: Buñuel eschews Pierre’s voice emerges on the sounda musical score and track: “What are you thinking about,
instead relies on Séverine?” Lying in bed, Séverine
vivid sound effects— sleepily answers, “I was thinking
in this case, the about you…and us.”
In a terrific insight, Buñuel usuclinking
of
the
ally presents Séverine’s dreams as
horses’ bells.
In the end, it is plausible before the inexplicable dethe scene’s increas- tails accrue; the director underingly implausible content—not its stands that dreams often spring
style—that leads us to suspect that from real incidents but then take
it is imagined. At the direction of fantastic turns. For example, after
Pierre, the coachmen take Séverine Séverine has been put on the afterfrom the carriage and belt her with noon payroll of a brothel, she is
their whips. “Pierre, please don’t let paired with an Asian man bearing a
the cats out,” she pleads, though Ms. small box. All is unremarkable until
Deneuve’s delivery is guileless, as the man unfastens the box; the conthough she is unaware that she is tents are never disclosed, but we can
ICONS
nno
NATIONAL GALLERY OF ART, WASHINGTON, CORCORAN COLLECTION
Reversal of Fortuny
MARIANO FORTUNY’S ‘The Choice of a Model,’ a satire of the Roman art world.
An overlooked painter
gets a revival in Madrid
BY J.S. MARCUS
SPANISH PAINTER Mariano Fortuny
was rich and famous in his early 30s.
But he had the bad luck, despite his
name, to die in 1874 at the age of 36.
His reputation—built on grand battle
scenes, Orientalist exotica and historical
genre pictures—dwindled with the triumph of impressionism. In recent years,
interest has rebounded in some of the
categories that Fortuny made his own,
and Madrid’s Prado Museum is seeking
to restore some of his lost luster with a
full-scale retrospective.
The 170-work “Fortuny (1838–1874),”
closing March 18, has a rich selection of
the artist’s innovative late pieces, which
raise the question of what direction he
would have followed if he had lived.
Born into a family of provincial Catalan carpenters, Fortuny was classically
trained in art in Barcelona and Rome. He
got his big break in the early 1860s,
when Catalan authorities sent him to
North Africa to chronicle a battalion of
solders fighting in the Spanish-Moroccan
War. Afterward, Fortuny created traditional panoramic canvases, like the
Prado’s own 6-foot-long “The Battle of
Wad-Rass,” on view in the show.
Fortuny would move on to more sophisticated subject matter, but his fond-
ably restored—the happy ending to
a guilt-ridden nightmare of Séverine’s? In the final images, when Ms.
Deneuve—never more serenely
aloof—looks from her apartment balcony, she sees not Paris but the
country road from the first scene,
and hears those horses’ bells again.
The film has the circularity of an
M.C. Escher print.
Edgar Allan Poe asked: “Is all that
we see or seem / But a dream within
a dream?” In “Belle de Jour,” Buñuel
answers with a resounding yes.
co Fo
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Convincing
re-creations
of the
subconscious.
hear what sounds like a bee or a
horsefly. In an apparent confirmation of the scene’s unreality, the man
then rings a palm-size bell, echoing
the horses’ bells in the first scene.
Perhaps Buñuel is suggesting that
Séverine’s more outlandish experiences as a prostitute are the product
of her overactive imagination—who,
after all, does not have workplaceinspired dreams?
The film’s final, elliptical stretch
centers on Marcel (Pierre Clémenti),
a lanky, talkative gangster who
grows smitten with Séverine. Their
tortured relationship has a ring of
believability, but not the incredible
sequence that follows: Marcel shoots
Pierre, rendering him wheelchairbound until his health is unaccount-
ly
.
BY PETER TONGUETTE
SNAP STILLS/REX/SHUTTERSTOCK
THE INTERPRETATION OF DREAMS
ness for North African settings stuck. He
depicted a wide range of subjects, from
desert landscapes to urbane carpet sellers, in paintings, prints and watercolors.
Javier Barón, head of the Prado’s
19th-century painting department and
curator of the show, hopes it will highlight the artist’s virtuosity. “Fortuny
made a revolution in watercolor,” says
Mr. Barón, citing the 1865 “The Camel
Driver,” on loan from New York’s Metropolitan Museum of Art. In the souk of
Tangier, a cluster of camels and their
driver appear in sumptuous repose. Fortuny “was able to render
with an extraordinary
accuracy not only the attitude or the movement
but also the mood of the
camels,” Mr. Barón says
of the work.
Fortuny married into
Spain’s art aristocracy—
his wife’s relatives included esteemed
painters and a director of the Prado. Despite his success, he seemed to feel at
home in what were then remote outposts like Granada’s Alhambra palace or
the outskirts of Naples. After his death,
people memorialized Fortuny as “a melancholic genius,” says Oscar E. Vázquez,
professor of art history at the University of Illinois.
He had supporters on both sides of
the Atlantic. Philadelphia sugar baron
William Hood Stewart, who bought Fortuny works and advised him on his fi-
nances, pops up in a painting within another painting,
Fortuny’s “Engraving Collector” (1863). In this fanciful
depiction of an 18th-century
art aficionado, Stewart
wears armor from around
1600 in a wall portrait reminiscent of Velázquez and
Van Dyck, says Mr. Barón.
In what turned out to be
the last years of his life, Fortuny began to experiment
with looser brush strokes
and different subject matter.
In a number of small-scale
beach and garden scenes, often featuring his own family,
the artist seemed to arrive
at a similar destination as
the impressionists, whose
own pictures were then selling in Paris for a pittance as
compared to what a Fortuny
genre scene could fetch.
“The kind of stuff I prefer are the
paintings he did for himself,” says Prado
director Miguel Falomir, citing the late
landscapes and depictions of his children
“in very natural poses.” The Prado show
includes “Beach at Portici,” in which the
southern Italian setting is compressed
into a tall, narrow array of colors. He
completed it in the last year of his life.
Fortuny still knew the market,
though, and continued to make scenes
like “The Choice of a Model,” a costume
satire of the Roman art world, set in a
palazzo.
Fortuny died suddenly
in Rome, but experts disagree on the cause. It
may have been malaria or
a stomach ulcer.
Where might he have
taken his art if he had
lived? Francesc Quílez
Corella of Barcelona’s National Museum
of Catalonia—a major lender of Fortuny
works—sees “The Painter’s Children in
the Japanese Room” as a sign of the artist’s intentions. Left unfinished at the
time of his death, the painting depicts
Fortuny’s two children as fragile figures
in front of a wall-size, Japanese-like image of oversize butterflies. Mr. Barón
says that Fortuny “was one of the very
first European artists to assimilate Japanese elements” into his work, a trend
that would prove decisive for later artists
like Paul Gauguin and Vincent van Gogh.
He ‘made a
revolution in
watercolor.’
Mr. Tonguette writes about the
arts for numerous publications, including the Columbus Dispatch, the
Weekly Standard, and National Review.
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.
C18 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
REVIEW
‘I made some
mistakes, I took
some shortcuts.’
BRAD TRENT FOR THE WALL STREET JOURNAL
co Fo
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ly
.
ing cocaine. He was arrested for
drunken driving that year. “I had
the disease of substance abuse,” he
says. In 1989, he got sober through
a 12-step program, “which was not
easy, let me tell you,” he says.
With just $1,100 in the bank and
$500 in credit, he says, he soon
began designing and manufacturing his own shoes. He hired the
doorman of his apartment building
to pretend to be his chauffeur and
to drive him around to shoe distributors in New York City, with
his shoes in the trunk. His early
designs—especially the Mary Lou,
a chunky, patent leather spin on a
Mary Jane—became a hit among
teenage girls.
He monitored his inventory incessantly. Back then, “if we had 20
cases [of shoes] and I only sold 16,
and there were four left over, I
couldn’t sleep. It would just make
me crazy,” he says. “I have a thing
about the waste.”
He opened his first store, in
Manhattan, in 1993. That same year,
his company went public. Mr. Madden turned to Stratton Oakmont, a
brokerage house co-founded by one
of his grade-school friends, to be
his company’s underwriter.
Brokers at Stratton Oakmont manipulated the IPO, improperly buying and selling shares quickly for
profit. Mr. Madden did the same
with his own company’s stock and
with other shares. In 2001, he
pleaded guilty to stock manipulation and securities fraud. He served
31 months in prison and had to pay
$3.1 million in restitution as well as
an $80,000 fine.
Two of Stratton Oakmont’s principals also pleaded guilty to securities fraud and money laundering;
the firm shut down in 1996. (A
memoir by one of those principals,
Jordan Belfort, became the basis
for the 2013 Martin Scorsese
movie “The Wolf of Wall Street.”)
Mr. Madden was forced to give up
his CEO title, and although he was
prohibited from having a full-time
role at the company, he was able
to earn $700,000 a year as a creative consultant in prison.
Prison “was a horrible experience, but human beings make the
best of bad situations, and I feel
like a better man because of that
experience,” he says.
These days Mr. Madden still designs shoes and goes into the office. In his free time he likes to exercise, working on a different
muscle group each day. “I like to
say I’m not getting any older, but
my body is,” he says with a laugh.
“That’s why I work out so much.”
He also spends time with his three
young children with his ex-wife.
Mr. Madden says that he has no
plans to leave fashion, adding, “I’m
actually probably going to just get
started again.” (What exactly he
plans to do, he won’t say.) For
now, he hopes that by talking in
the film about his painful experiences, he might help others to get
through their own.
“I made some mistakes, I took
some shortcuts,” he says. “I’ve survived all this, so there’s a message
to other people to not lose hope.”
WEEKEND CONFIDENTIAL: ALEXANDRA WOLFE
Steve Madden
n-
cluding Betsey Johnson. But at the
center is his shoe brand, known
for its affordable takes on trendy
styles, such as chunky platform
pumps and leopard-patterned
boots. Though he’s no longer the
chief executive, Mr. Madden remains creative and design chief.
His latest project is “Maddman,”
a documentary film about his life.
(It’s co-produced by a film company
he started last year.) It is already
out on iTunes and Amazon and will
be released on Netflix on Jan. 1. It
details not just his rise in the fashion world but his more difficult
times, including his former drug addiction, divorce and prison time. He
no
SHOE DESIGNER Steve Madden defied the conventions of the fashion
world with his first major advertising campaign in the mid-1990s. Instead of the usual models or actresses, the ads featured cartoonish
illustrations of girls with oversize
heads, skimpy outfits and trendy
shoes. The goal was to appeal to
the rebellious side of teenagers.
“I’ve always been a disrupter,” Mr.
Madden says. “I dig that.”
The company that he founded in
1990 now includes 320 Steve Madden stores in 80 countries. With
2,500 employees and sales of $1.5
billion last year, the firm also
owns 12 other fashion brands, in-
The shoe designer steps up to a
new documentary about his life
wanted to reveal those parts of his
life in the film, he says, because
“we’re only as sick as our secrets.”
Talking in his Midtown Manhattan showroom, Mr. Madden, 59,
wears a trucker hat and a tight
black T-shirt that stretches around
his muscular arms. He grew up in a
middle-class family on New York’s
Long Island. He remembers his parents constantly talking about the
Great Depression. That left him
concerned about finances, and to
this day, he is “very funny about
money,” he says. “I was a bit like
Chicken Little. I always thought the
sky [was] always falling.”
Mr. Madden went to the Univer-
sity of Miami, but he was more interested in partying than in school
and dropped out in 1977. He got a
job selling shoes at a store on Long
Island, then moved on to a shoe
wholesaler, where he spent eight
years learning about different aspects of the business, including
marketing and manufacturing. The
experience inspired him to get into
shoe design. He used to sneak into
the company’s factory to watch the
designers work so that he could
learn how to do it himself.
In 1988, he quit to start his own
business, but he was facing more
personal problems. For years, he
had been drinking heavily and do-
MOVING TARGETS: JOE QUEENAN
The Eternal Benefits of Forever Everything
But there’s no reason that other
businesses couldn’t profit from the
Forever Stamps concept. They get
badly needed cash today and consumers can lock in a bargain rate
forever. Here are just a few obvious examples:
Forever Corn. The price of our
nation’s iconic kernels varies
wildly from year to year, depending on weather, pent-up overseas
popcorn demand and the public’s
ceaselessly vacillating attitude toward high-fructose sweetener. By
purchasing Forever Corn
vouchers, consumers ensure
that their descendants can
purchase the stuff for 30
cents a cob decades, perhaps
even hundreds of years, in
advance. And if genetically
engineered corn should dramatically slash prices at some
point in the future, farmers
will end up having sold millions of dollars
of vouchers that will never
be redeemed.
Why not apply
the Forever
Stamp concept
to smartphones
and corn?
Forever Amazon Prime. With
a Forever Prime certificate, you
can get your packages delivered
free until the end of time. The only
way consumers could lose out on
their investment is if Jeff Bezos
figures out a way to teleport packages for nothing. That probably
won’t happen until 2021.
Forever iPhone. You’ll be
smirking at your friends and family when the iPhone XX starts selling for $55,000 and you’ve locked
in the price at today’s low, low
rate of $1,000. Also on tap: Forever
Lamborghini, Forever Rolls-Royce
and Forever Tesla.
Forever Fedoras. As with
bitcoin, the price of fedoras,
pork pie hats and other snarky
headgear fluctuates wildly. A
natty fedora today might run
you a paltry 50 bucks; in 10
years’ time the price could triple. With a Forever Fedora
voucher, hipsters can ensure that
their kids will be sporting
ironic, easily affordable cha-
peaux straight into their 40s.
Forever Gratuities. Purchase
Forever Gratuity vouchers for restaurant tips today and watch as
those vouchers spiral in value—no
matter what develops on the inflation front. Get a 15% tip for $5 today and your future self will thank
you, especially when that robot
waiter gets your order for a welldone hamburger wrong.
Forever Small-Town Cops
Moving Infractions Fines. Let’s
say the current price tag for going 26 in a 25-mile zone sets you
back $150 down in Podunk. Just
think how good you’ll feel when
you use your $150 voucher 30
years from now, when a speeding
ticket will easily run you $1,000.
Bring it on, coppers!
Forever School Taxes. The
most exciting application of the
Forever concept ever. Purchase a
Forever School Taxes voucher now
and you’ll still be paying 2017-level
taxes in 2067. Provided there are
still any public schools.
NISHANT CHOKSI
INVESTORS prescient enough to
buy Forever Stamps when they
first went on the market in 2007
are now crowing: The ailing U.S.
Postal Service wants to jack up the
price of a first-class stamp yet
again, from 49 to 50 cents. Anyone
who bought those original Forever
Stamps for 41 cents is positively
giddy at having locked in that
hedge against inflation.
One thing that puzzles me is
why the Forever Stamp concept
hasn’t spread to other sectors of
the economy. The approach allows
the Postal Service to get its hands
on revenue it might otherwise
never have.
The underlying economic and
philosophical premise of the Forever Stamp seems to be: If we can
rope in enough extra cash to keep
the post office going for another
few years, we might eventually
have enough cash to hire someone
smart enough to run this operation
at a profit. So far, not much luck
on that front.
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.
Saturday/Sunday, December 16 - 17, 2017 | C19
* * * *
PLAY
1. Minnesota’s
governor chose
Lt. Gov. Tina
Smith to
succeed Sen. Al
Franken, who is
resigning over
allegations of
sexual misconduct.
Name that governor.
A. It “mines” bitcoin.
B. It wants to provide cryptocurrency services, including a
trading floor and a price index.
C. It sells burial crypts, but
investors assumed it dealt in
cryptocurrencies.
D. It makes low-budget
horror films.
7. Only one Ivy League school
posted a sub-10% return on its
endowment for the fiscal year
ended June 30. Which?
3. In a decision that could have
national ramifications, New York
state banned the use of which
characteristic in setting auto
insurance premiums?
A. Dartmouth
B. Penn
C. Harvard
D. Faber
A. Gender
B. Age
C. Handedness
D. Education
8. A new DNA map of the
Tasmanian tiger, believed extinct
since 1936, shows what?
A. Fun
B. Low-alcohol wine and
beer
C. Movie theaters
D. Women’s sneakers
5. The White House will
nominate Victor Cha, a
To see answers, please
turn to page C4.
Last December, the coach purchased
several gifts and noted that each one
cost a perfect square number of
dollars. When the set of prices was
written down, every integer from 1 to
9 appeared exactly once.
If the total cost was the
minimum possible, what
was the total bill and
how many gifts did
he buy?
Good Relations
Chris says: “Nieces and
nephews have I none,
but Alex’s father-in-law
is my mother-in-law’s
son.”
How are Chris and
Alex related?
For previous weeks’ puzzles,
and to discuss strategies
with other solvers, go to
WSJ.com/puzzles.
ILLUSTRATION BY LUCI GUTIÉRREZ
+
Learn more about the National Museum of Mathematics (MoMath) at momath.org
SOLUTIONS
TO LAST WEEK’S
PUZZLES
co Fo
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A. It was in poor genetic
health before being hunted to
extinction.
B. It was in robust
genetic health and probably persists somewhere
in Australia.
C. It was
actually a
kind of dog.
D. It can
easily be
resurrected.
4. Saudi Arabia lifted a decadesold ban—on what?
National
Museum of
Mathematics
Square Purchases
6. Bitcoin mania flourished,
sending the value of penny-stock
Crypto Co. into the billions. What
does the company do?
A. Gadsden
B. Gallant
C. Gantt
D. Gaylesville
Provided by the
for gift-giving and
family visits—and the coach has two
puzzles on those themes this week.
A. South Korea
B. China
C. Hungary
D. The Philippines
2. Democrat Doug Jones upset
Republican Roy Moore to win a
Senate seat in Alabama. Mr.
Moore rode up to his polling
place on horseback—in which
community?
VARSITY MATH
It’s the season
Georgetown University
professor, as ambassador to
what country?
A. Mark Akron
B. Mark Canton
C. Mark Dayton
D. Mark Lorain
FROM TOP: REUTERS; ISTOCK
From this week’s
Wall Street Journal
ly
.
NEWS QUIZ: Daniel Akst
Predisposition
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Varsity Math
In Fifty-Fifty, the
total number of balls
initially in the bag was
k2 for any k=2,3,4,5…
For Random Toss
the disk diameter and
the probability of
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4/( +4) . .560099153…
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A R
D E
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AM
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THE JOURNAL WEEKEND PUZZLES Edited by Mike Shenk
4
5
6
7
8
9
10
11
12
13
14
15
16
n-
3
no
2
17
18
19
1
Q2
L3
B
19
S 20
F 21
Q 22
39
X 40 B
60 W 61
4
R 23
41 M 42
K
62
I 81
J5
P
24
E 43
I 63 G 64
K 82 N 83
T6
S7
U
8
L 25 M 26 V 27
P 44 Q 45 K 46
T 65
T 80
C 84 R
99
J 100 P 101 V 102 I 103 S 104 M 105 A
M
10
K 28 X 29
67
V 12
X 13 W 14
D 32 U
49 A 50 S
P 68 Q
85 X 86 G 87 U
C 11
E 30 G 31
J 47 H 48 O
S 66 H
79
K9
69
51
E 70 N 71 M 72
88 B 89 M 90
J 91
Q 92
33
E
15
S 34
H 16
C
V 52 N 53
N
17
35 N 36
X 54
J 18
O
R 37 W 38
T
C 55 M 56
L 73
J 74 V 75 A
L 93
S 94 H 95 W 96 D
J 57 D 58 U 59 R
76 H 77
97
F
78
T 98
P
E
106 X 107 R 108 B
109 F 110 D 111 K 112 H 113 E 114 T
115 L 116 Q
119 N 120 A 121 S 122 C 123 W 124 I 125 K 126 M
127 O 128 P
129 X 130 S 131 N 132 H 133 O 134 G
135 M 136 D 137 B
138 A
139 K 140 J 141 T
146 Q 147 H
148 U 149 S 150 R
151 K 152 N 153 J 154 G 155 M 156 F
157 O
158 S
142 P 143 V 144 F 145 X
159 L 160 I 161 C 162 B 163 P 164 Q 165 M
177 D 178 T 179 P 180 C 181 X 182 M
166 G 167 N 168 R
183 S 184 F 185 B 186 N 187 H
169 S 170 A 171 J 172 M 173 U 174 E
188 J 189 E
117 J 118 U
175 W 176 L
190 M 191 G 192 X 193 K 194 R 195 U
196 O
197 F 198 I 199 V 200 B
Acrostic | by Mike Shenk
To solve, write the answers to the clues on the
numbered dashes. Then transfer each letter to the
correspondingly numbered square in the grid to spell
a quotation reading from left to right. Black squares
separate words in the quotation. Work back and
forth between the word list and the grid to complete
the puzzle. When you’re finished, the initial letters of
the answers in the word list will spell the author’s
name and the source of the quotation.
M. Traditional carol
that mentions
sailing “into
Bethlehem” despite
it being landlocked
(4 wds.)
____ ____ ____ ____ ____ ____ ____ ____
N. Code that
discourages posting
in all caps or
hijacking a thread
____ ____ ____ ____ ____ ____ ____ ____
O. Part of a sundial
that casts the
shadow
____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____ ____ ____ ____
55 126 135 190
9
165 89 182
____ ____ ____ ____ ____ ____
155 41
25 104 71 172
167 52 82 70 131 119 16
35
____ ____
186 152
A. Mean-spirited
person, killjoy
____ ____ ____ ____ ____ ____
B. Noisy excitement;
boisterous party
____ ____ ____ ____ ____ ____ ____ ____
C. Soothe, as a sore
muscle (2 wds.)
____ ____ ____ ____ ____ ____ ____
D. Skirtlike garment
worn by Malaysian
men and women
____ ____ ____ ____ ____ ____
P. Boundary indicated
on maps by a blue
line with directional
triangles (2 wds.)
____ ____ ____ ____ ____ ____ ____ ____
Q. 1963 book that
begins “UP PUP
Pup is up” (3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
E. Spice-and-spirits
drink for a winter
nightcap (2 wds.)
____ ____ ____ ____ ____ ____ ____
R. Animal whose milk
is traditionally used
to make the Finnish
cheese juustoleipä
____ ____ ____ ____ ____ ____ ____ ____
F. Pear-shaped fruit
with buttery green
flesh
G. Smallest of
Uranus’s five major
moons
____ ____ ____ ____ ____ ____ ____
S. Actually (4 wds.)
____ ____ ____ ____ ____ ____ ____ ____
H. Newbie on the
skiing slopes
(2 wds.)
____ ____ ____ ____ ____ ____ ____ ____ ____
I. Self-defense
practice
emphasizing
flowing, circular
movements
(2 wds.)
____ ____ ____ ____ ____ ____
J. Much soft news
online and on
television
____ ____ ____ ____ ____ ____ ____ ____
K. Mexican plant used
by the Aztecs to
produce a red dye
L. Food sometimes
strung as a
Christmas tree
decoration
75 170 120 49 105 138
185 162
3
108 200 137 40 88
180 122 83 161 34
96
10
54
31 110 177 136 57
42 189 29 69 98 113 14 174
144 20 77 109 184 156 197
30 63 134 166 86 154 191
48 127 133 196 18 157
78 43 163 23 179 100 128 67 142
1
21
91
68 146 44 116 164
84 150 22 107 168 59 194 36
130 149 183 50 93
33
65 158
____ ____ ____ ____ ____
169 103 19
66 47 147 112 15 132 94 76 187
124 160 198 62 102 80
46 188 117 171 17
90 73
4
6
T. Congestion
symptom
____ ____ ____ ____ ____ ____ ____ ____
U. Recipients of many
Playskool toys
____ ____ ____ ____ ____ ____ ____ ____
V. Winter holiday
display
____ ____ ____ ____ ____ ____ ____
W. Some Christmas
tree toppers
____ ____ ____ ____ ____ ____
X. Worker who makes
deliveries while
wearing a suit
(2 wds.)
____ ____ ____ ____ ____ ____ ____ ____
141 97
5
64 178 79 38 114
173 148 87 195 58
51 199 74
123 175 95
121
11
37
7
118 32
26 101 143
13
60
____ ____ ____ ____
140 153 56 99
____ ____ ____ ____ ____ ____ ____ ____
45 111
8
151 61 125 81 193
____ ____
27 139
____ ____ ____ ____ ____ ____ ____
72 176 92 24
2
159 115
192 85 39 145 53 181 129 106
____ ____
12
28
Get the solutions to this week’s Journal Weekend
Puzzles in next Saturday’s Wall Street Journal.
Solve crosswords and acrostics online, get pointers
on solving cryptic puzzles and discuss all of the
puzzles online at WSJ.com/Puzzles.
s
40 O’Hara home
41 “The Canticle of
20
21
22
the Rose” poet
23
24
25
42 He was once a
factor at Fox
26
27
28 29
43 Professional
development for
30
31
32 33 34
35
an Oscar Mayer
36 37
38
39
40
employee?
44 Browns, on
41 42 43
44
45
46
scoreboards
47
48
49 50 51
52
46 Cancel out
49 Tribute with
53
54
55
56
57 58
tweaking
59
60
61 62
63
50 Grandly
appointed
64
65 66
67
68
51 Army choppers
69
70
71
72
52 ___-ball (arcade
game)
73
74
75
76 77
54 Sound
78
79 80
81
82
investments
56 H.S. big shots
83 84
85
86
87
57 Defunct digital
88
89
90 91
92
dictionary
58 Taylor or Monroe
93
94
95
96
97 98 99 100
60 Fire
101
102
103
104
61 Ford and Lincoln
105
106 107 108 109
110
62 Robbins of
Baskin-Robbins
111
112
113
65 Musical set in a
114
115
116
junkyard
66 City on
Guanabara Bay
Professional Development | by Randolph Ross
67 Shrek, e.g.
4 Make safe from
46 Carnation
82 Tense finishes in
Across
68 Tempe sch.
data thieves
containers
the NFL
1 Becomes an
70 LAPD figures
5 ___-chef
47 Like “come” and
83 Exhibits anxiety
occupant
72 He complained
“go”: Abbr.
6 Here, in Le Havre
85 Putting target
8 Étouffée
of “nattering
48 Professional
7 Offensive, in a
ingredient
86 Aegean eateries
nabobs of
development for
way
negativism”
15 For face value
88 Cuba’s Castro
an energy
8 Roxane’s lover
74 Christmas carol
20 Home to the
89
Raptors
center
environmentalist?
9 Go to the next
75 Swimmer on a
black spot
Poeltl
52 Do a laundry
chapter
slide
piranha
90 Day-___ paint
task
10 Triple-platinum
76 Athletic Hamm
21 “What’s your
92 Sheared she
53
Social
snack
Alicia Keys album 77 Really fancy
decision?”
93 Print measures
55 Bumbler’s
11 Got the gold
22 Fashionable
79 Bit part
94
Professional
utterance
Geoffrey
12 Wash’n ___
80 Loads
development for
56
Region
with
runs
(towelette brand) 81 High
23 Professional
a member of the
59 Bad forecast for
development for
13 Mitt’s mate
Fed?
83 Foremost
fighting
fires
an electrician?
14 Where some
97 Winner of the
84 “Goodbye
60 Hacienda house
25 Royals Hall of
boxers
get
2005 Emmy for
Christopher
61 Said publicly
Famer
exercise
Outstanding
Robin” subject
63
Pop’
s
brother
26 Picks up
Drama Series
15 Arafat’s
85 Make colorful
successor
64 Fraternal order
27 Devil’s designer?
101 Hit “Reply All” on,
shirts, perhaps
since 1868
maybe
16 Garr of “Tootsie”
28 Grassy expanse
87 Tells
65 Professional
103 Saxony seaport
17 Professional
30 Supporter
89 Hollywood
development for 104 Pool cry
development for
Hamm
31 Professional
a market
a member of
development for
105 Old war story
90 Workout
analyst?
Parliament?
a financial
obsessive
106 Professional
68 Int. earner
18 Garage sale
manager?
development for
91 Halls rival
discovery
69
Honorary
deg.
for
35 They’re high at
a golf pro?
94 Olympian award
an attorney
19 Takes more
Harvard
111 Name on a
95 Superman, on
blood,
e.g.
70
Good
guy
36 Address abbr.
famous B-29
screen
24
Three-person
71 “Flip or Flop”
preceding a
112 Armenia’s capital
96 Occupied
team
network
number
113 Important person
98 Rigel’s
29 Where Mandela
72 “___ Is Born”
38 Solution
constellation
114 Of concern to
was pres.
component,
73 Deceiving
nephrologists
99 Social snack
perhaps
31
Amazon
75 Dynamic start
115 Places for laces
100 Staples purchase
purchase
39 Now, in
76 Dorothy of
116 Santa player in
102 Hacienda room
Nicaragua
32 Catches flies
“Gentleman’s
“Elf”
104 Nursery cry
Agreement”
33 Jim ___ (Tony
40 Fastener with
Down
107 “The Last Jedi”
Hillerman
a letter-shaped
78 Boozers
protagonist
1 Frappuccino
detective)
cross section
79 Professional
choice
34 Enjoy a hammock 108 Fury
41 Toto specialty
development for
109 MPH
2 Bay window
a Smucker’s
37 Musée d’___
45 Host to the
110 Fish with a barbel
(Paris museum)
employee?
3 All over the Net
Lennon Sisters
1
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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co Fo
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.
C20 | Saturday/Sunday, December 16 - 17, 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 costbenefit
advantage
of costume
jewelry
Dan Neil
on the attainable,
acclaim-able
Honda Civic
Type R
D3
D10
EATING
|
DRINKING
|
STYLE
© 2017 Dow Jones & Company. All Rights Reserved.
|
FASHION
* * * *
|
DESIGN
|
DECORATING
|
ADVENTURE
THE WALL STREET JOURNAL.
|
TRAVEL
|
GEAR
|
GADGETS
Saturday/Sunday, December 16 - 17, 2017 | D1
co Fo
m rp
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ci on
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ly
.
Fake
A Seat,
Any Seat
I
no
n-
COMMODITY OPTIONS Now that retailers have embraced augmented reality apps, which let you use your smartphone camera to ‘place’ virtual furnishings in your own space, you could test eight
chairs before buying. Clockwise from top left: Caracole Abby Glass Writing Desk (shown throughout), $1,649, horchow.com; Tom Dixon S Chair by Cappellini, $1,475, 1stdibs.com; Gamfratesi Beetle
Dining Chair by Gubi, $1,209, hivemodern.com; Faye Slipcovered Desk Chair, from $469, rhteen.com; Daily Task Chair, $599, bludot.com; Giò Ponti Livia Chair, $310, 1stdibs.com; Milo Baughman
Dining Chair by Thayer Coggin, from $1,256, yliving.com; Paige Round-Back Dining Chair, $460 for 2, worldmarket.com; Ralph Lauren Home Palms Armchair, $4,400; onekingslane.com
BY SARA BLISS
N MY LATE TWENTIES I had the crazy idea of
painting my bedroom red. As a writer, I covered bold design moves and wow moments, so
why not try my own?
Unfortunately, when the paint dried, the
shade looked like the hot pink lipstick favored by the
1950s geriatric set. After six months, I painted over
the agitating color with Benjamin Moore’s very safe
Sidewalk Gray.
I made other decorating blunders, too: a Parsonsstyle dining table, so cool in Domino magazine, dwarfed
everything in my small apartment; a trio of one-of-akind embroidered Indian pillows painfully clashed with
the graphic prints on my curtains and pillows.
I’m pretty typical, it turns out. “With design, most
people have a hard time understanding what a space
will look like,” explained Anthony Deen, managing
partner of Brooklyn’s Place + Make Design, and adjunct
professor at New York’s Parsons School of Design.
Now new technology is helping amateurs envision
furniture in their spaces in sophisticated ways not
possible just 18 months ago. Photo-realistic computer imagery renders rooms in scale and perspective and includes both “sunlight” and “shadows.” You
can view this 3-D imagery in 360 degrees (panning
vertically as well as horizontally, as with Google
Street View) on any desktop or mobile device.
Another new tool, augmented reality (AR), essentially merges objects in the virtual world with the real
world as viewed through your smartphone’s camera.
The technology existed last year, but Apple’s new iOS11
and its ARKit software has made developing AR apps
easier. Predictably, they’re proliferating. Now, instead
of nabbing a Pokémon Squirtle at the corner of Main
and South Streets, you can pull a 3-D image of an
Eames Eiffel chair up to your kitchen table, as long as
you’ve downloaded iOS11 or have one of a few Android
phone models. Virtual reality takes it up a notch, putting you “inside” a designed virtual room. “It is a matter of both the hardware technology and software algorithms coming together at the right time,” said Mr.
Deen. “It is finally taking off for consumers.”
The result: Now you can play before you pay.
These technologies let shoppers make fewer mistakes when ordering furniture because they give
people a clear sense of scale and let them try out
different designs easily, said New York architect and
interior designer Campion Platt. “The tools open an
entirely new window for those who cannot afford, or
do not want, an interior designer. That would be
85% of the market.”
I decided to use my bedroom to test out the new
gadgetry. I hoped, with a budget of $5,000, to take my
space from conventional (floral headboard, inherited
vintage furniture) to something more glamorous—
without leaving my apartment.
Only a handful of brands, including IKEA, Wayfair,
Amazon and Houzz, have launched AR features or
apps. You click on furniture you like, hover your camera over the floor so the app can calibrate scale, then
point your phone’s camera at the spot in your room
where you’d like to “place” the item. Click once and
the object appears in your space. Continue to aim
your phone at the virtual piece and you can walk
around it, scrutinizing from all angles. Zooming the
Please turn to page D4
[ INSIDE ]
WINTER TAKES IT ALL
A crisp argument for visiting Dubrovnik
in the cooler season D7
NO, YOU DON’T NEED 671 PHOTOS...
...of the same thing. Tips on decluttering
your smartphone image library D11
THE CAESAR VARIATIONS
Oh, the romaine-ity! Recipes from
classic to iconoclastic D8
CARDIGAN SHARKS
Aggressively stylish new ways to wear a
gentle-souled sweater D2
ILLUSTRATIONS BY MODSY
Thanks to augmented-reality apps
and 3-D imaging, DIY decorators can
now truly envision design schemes
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.
D2 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
STYLE & FASHION
HOT BUTTON
In Florence last
year, a gentleman
demonstrates the
right way to layer
a cardigan.
EVOKE THE ‘80S
Not all cardigans have
to be quiet. Lanvin’s
striped, brushedwool version has
a throwback
charm. Paired
with solidcolored
elements, it
echoes the
rakish look of
Paul Weller,
frontman for ‘80s
English rockers the
Style Council. Lanvin
Cardigan, $995,
mrporter.com; Jijibaba Tshirt, $65, Dover Street
Market, 646-837-7750,
Pants, $40, uniqlo.com;
Common Projects
Sneakers, $468,
mrporter.com
A Change for the Sweater
B
lame Fred Rogers for the offputting reputation of
traditional cardigan sweaters. Happily uncool, the TV personality
wore them for 33 years on
PBS’s “Mister Rogers’ Neighborhood,” donning his last
one on-air in August 2001.
One of his bland zip-ups
even earned a place in the
Smithsonian Archive. “For a
certain generation, the cardigan is tied to Mr. Rogers’
nerdy, professorial look,”
said Bruce Pask, the men’s
fashion director at New York
department store Bergdorf
Goodman. That makes
sense: No guy wants to look
like he’s about to open up a
picture book and tell his
date a bedtime story. In recent years, there’s been
more interest in chunky
shawl-collared cardis that
said, “How do you take your
White Russian?” not “Can I
read you ‘Green Eggs and
Ham?’ ”
Yet men have begun to rediscover the style potential
of a slim cardigan—buttoned, not zipped like Mr.
Rogers’s versions. In merino,
cashmere or cotton, these
lightweight cardigans, like
the Meticulous Knitwear iteration shown (right middle), come off as refined, not
stodgy. And besides, their
value as versatile wardrobe
players trumps whatever lingers of their insipid image.
“A cardigan doesn’t have to
speak about your identity, it
can just be a layering piece,”
said Mr. Pask. “It’s an easy
piece, over jeans and a shirt,
and pardon the pun, it can
ly
.
BY JACOB GALLAGHER
UNSTUFF A SUIT
Layer a cardigan
under a suit to
channel George
Peppard’s sharp
“Breakfast at
Tiffany’s” look. It
adds insulation but
not undue padding.
Swap out a dress
shirt for a T-shirt to
telegraph confident
and casual, not posh
and preppy.
Meticulous Knitwear
Cardigan, $88,
Nepenthes, 212-6439540; Suit, $2,250,
Canali, 212-4396400; Mr P T-shirt,
$75, mrporter.com;
Oxfords, $1,095,
johnlobb.com
co Fo
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on
Once pegged as eggheady,
the fine-gauge cardigan has evolved
into an indisputably cool dude.
Here’s how to wear it
button up the look.” Companies such as Maison Kitsuné,
Thom Browne and Zanone
have taken the cringe out of
cardigans by streamlining
the silhouettes in subtle
solid colors
Think of the cardigan as
a sidekick, not the host of
your outfit. “It’s not a statement piece; often, a cardigan goes unnoticed,” said
Robert Hirsh, the owner of
Silver Deer, a chain of menswear boutiques in Mexico,
who purchased a commendable gray cardigan from
Comme des Garçons 9 years
ago and still layers it over
white button-downs and
polo shirts. Seasonless, its
fine-gauge knit is “thin, so I
can put it under a blazer or
jacket,” he said.
A thicker-gauge cardigan,
like Lanvin’s striped one
(right top), serves another
purpose, said Mr. Pask, who
sees it as the “original unstructured jacket” that sits
lightly on your shoulders
but “is dressier than wearing a shirt on its own.” Unlike an ultrafine wool cardigan, which edges into emosinger-with-guyliner
territory, a meatier merino
has the heft to hang sufficiently tough.
Elton Hui, the purveyor of
Meticulous Knitwear, a cardigan-focused brand in New
York City, uses a solid 14gauge cotton that balances
breathability and bulk. “I
have a problem with a
sweater that’s so thick you
get really hot in it,” said Mr.
Hui. A cotton one allows you
to “go through multiple temperature zones—from your
house to your office—in an
easy and utilitarian way,”
agreed Mr. Pask. Here, three
ways to style the look.
AVAILABLE AT NEIMAN MARCUS
PR EC I O U S J E WEL S SALO N S 8 0 0 -937-914 6
no
n-
540-837-3088 or www.elizabethlockejewels.com
TRUST IN
TEXTURE
A cable knit is
undeniably cozy, but
its bulkiness makes
it hard to pair
with other
pieces. This
Zanone
cardigan has a
more discreet
textural oomph
you can play up
with napped cords
and a striped shirt.
Zanone Cardigan,
$495,
Slowear,
646-7231900; Mr
P Shirt, $175,
mrporter.
com; Trousers,
$395, Ermenegildo
Zegna, 212-421-4488;
Anderson’s Belt, $155,
Todd Snyder, 917-2423482; Boots, $325,
grenson.com
GETTY IMAGES (MAN); F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY ANDREW MADRID
JEWELS
BARNEYS.COM
NE W YORK
CHICAGO
B E V E R LY H I L L S
BOSTON
LAS VEGAS
SAN FRANCISCO
PHILADELPHIA
S E AT T L E
F O R I N S I D E R A C C E S S : T H E W I N D O W. B A R N E Y S . C O M
MANOLO BLAHNIK
#HA ASRULES
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.
Saturday/Sunday, December 16 - 17, 2017 | D3
* * * *
STYLE & FASHION
Entry-Level Cachet
Not flush enough to invest in a designer bag? Snag your favorite label’s signature look with thriftier costume jewelry
calfskin 2.55 handbag ($4,900), named for the
date of its creation in February 1955. Meanwhile, Gucci’s $880 faux-pearl and crystal-encrusted ring in the shape of a bee makes one
of the label’s ’70s-era symbols buzzy again.
The brand’s Dionysus suede-and-canvas bag
($4,400) is similarly insect-inspired, with embroidered moths, flowers and crystal beetles.
Other costume jewelry designs are even
more closely linked to their sisters in the bag
department. Valentino’s $745 turquoise resin
and antique silver earrings, blinged out with
jet hematite crystals, reflect the edgy rock ’n’
roll vibe of the label’s platinum-studded red
leather Rockstud Spike Chain Bag ($3,195).
BY KIMBERLY CHRISMAN CAMPBELL
I
KINDRED SPIRITS This Bottega Veneta costume-jewelry necklace shares crisp, geometric rigor
with the label’s trademark leather weave. Necklace, $3,950, and Bag, $7,000, Bottega Veneta,
800-845-6790
BAUBLE
VS.
BAG
no
n-
These gems
deliver a label’s
essence for less
PRADA The clean, millennial
lines of this silvery chain echo
the streamlined look of Prada’s
trademark backpack. Necklace,
$920, and Bag, $1,100, Prada,
212-334-8888
VALENTINO Both the earrings
and the bag descend from the
brand’s Rockstud heels, which
have sold out every season since
2010. Earrings, $745, and Bag,
$3,195, Valentino, 212-355-5811
CHANEL Much like the quilted,
chain-strapped 2.55 bag, the
camellia is a classic emblem of
the house of Chanel. Brooch,
$625, and Bag, $4,900, Chanel
212-355-5050
A tasseled liquid-metal necklace from
Prada’s 2018 Resort line, sleek and unadorned, has much of the straightforward
quality of Prada’s signature backpack ($1,100)
made of industrial black nylon, though at
$920 is almost as pricey. And Bottega Veneta’s $3,950 faceted cubic zirconia and oxidized silver necklace echoes the geometric
precision of its well-known leather weave,
seen in the Cabat tote ($7,000).
With Céline’s designs, a common denominator is overscale proportions; neither the
brand’s classic calfskin Big Bag ($5,500) nor
its brass letter charm, a more reasonable outlay at $380, could be called petite.
Handbags can be very good investments.
“Birkin bags outperform the Standard and
Poor’s index consistently,” said Ms. Kraus.
And from all accounts, a designer piece of
costume jewelry, while not fabulously expensive at the outset, can hold its value over
time if it remains in excellent condition—or
even appreciate. Ms. Kraus recently sold several noteworthy Chanel pieces from former
fashion editor and stylist Polly Mellen’s jewelry collection.
That idea gives a whole new meaning to
the phrase “Fake it ‘till you make it.”
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F. MARTIN RAMIN/THE WALL STREET JOURNAL; EMMA KELLY (ILLUSTRATIONS)
For far less money, this
gambit still lets you co-opt
the brand’s style DNA.
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F YOU’VE GOT an iconic Chanel or
Céline handbag on your wish list but
not in your budget, here’s a compromise: Buy a piece from the brand’s
costume jewelry collection that distills the essence of the bag. For far less
money, this gambit still lets you co-opt the label’s style DNA. “Costume jewelry represents
a nice entry level, especially for younger people,” said Dana Kraus, owner of Connecticutbased DK Farnum Estate Jewelry. “I recommend new or young collectors to find a
designer you love, follow and collect them,
and take care of what you have.”
Costume jewelry (known as bijoux fantaisies in French) uses ordinary metals and
semiprecious gemstones to mimic fine jewelry—or, more often these days, to deliver
effects that can’t be achieved with precious
gemstones. “Costume jewelry allows for
whimsy,” Ms. Kraus said. “Designers can express themselves more freely in less expensive materials.” As a result, costume pieces
have become highly prized for their creativity and beauty.
That wasn’t always the case. Early on,
costume jewelry was partly valued as a way
to make travel worry-free. It was relatively
cheap so there were fewer anxieties about
stolen baubles or extra insurance. Then, in
the 1920s and ’30s, along with utilitarian
garments like cardigans and trousers, Coco
Chanel popularized costume jewelry as an
end in itself, and Elsa Schiaparelli collaborated with Surrealist artists to produce museum-worthy pieces.
During World War II, when metals were
requisitioned for the war effort, many fine
jewelry designers found work making costume jewelry for couture houses like Balenciaga. Hollywood movie stars wore costume
jewelry by Joseff of Hollywood along with
their Van Cleef and Arpels fine jewelry, on
and off screen.
Some of this season’s timeless offerings
truly can stand in for a pricier purse. Take
Chanel’s $625 pin in the shape of a white camellia. A Coco Chanel motif since 1922, the
camellia is as classic as the house’s quilted
CÉLINE With its exaggerated
scale, the alphabet charm
shares oversized proportions
with the beloved Big Bag.
Letter Charm, $525, and Bag,
$5,500, Céline, 212-535-3703
GUCCI This bee ring and the
handbag from the Italian label’s
Fall/Winter collection have
insect motifs in common. Ring,
$880, and Bag, $4,400,
gucci.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.
D4 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
DESIGN & DECORATING
DIGITAL DÉCOR: PLAY BEFORE YOU PAY
THE VIRTUAL DESIGN
BEFORE AND ‘AFTER’ With a 3-D rendering (above), online design gurus
Decorilla helped the author see a glam take on her ‘granny’ bedroom (below).
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THE REALITY
On a whim, I tried a
simple, wood canopy bed,
which completely worked.
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Seeing everything to scale
proved invaluable. I had dreamed of
a four-poster or canopy bed but
worried my 187-square-foot bedroom with 8-foot ceilings couldn’t
handle it. On a whim, I chose a simple wood canopy option (all frame,
no draping) from Pottery Barn,
which completely worked. I ultimately found a design I loved and
would not have imagined alone.
Next stop was Decorilla, which
pairs you with a live designer from
the start and pulls from 200 partner brands, many discounted 5% to
45%, including Jonathan Adler and
Arteriors. The fee per room ranges
from $445 to $1,399, depending on
your designer’s experience. I tried
the $699 Silver package.
I took a brief visual style quiz,
To see an immersive, 360-degree
rendering, go to WSJ.com/design.
A Boon or a
Threat?
Nothing can be a
placeholder. Clients get
attached to the design
in the rendering.”
—Anita Dawson, designer, San Diego
“These AR apps are
great for homeowners
who want one more
piece of information
before they buy. Kind
of like how Zappos
shows every angle of a
shoe. Do you need that
last shot of the sole?
Probably not, but you
feel more confident
hitting ‘Add to Cart.’”
—Melanie Coddington,
designer, San Francisco
“This year the quality
of 360-degree renderings exploded, and
they’re a digestible
and distributable form
and don’t require a
headset or special
equipment.”
—Pablo Marvel, CEO,
Nova Concepts, New
York
“I’m not worried about
the direct-to-consumer
augmented options
relative to my privateclient business because they don’t address the custom,
unique nature of our
business.”
—Matthew Frederick,
designer, Morristown,
N.J.
“We love virtual reality.
Each lead designer’s
workstation has a
headset, and we have
two open-use roomscale walk-through virtual reality stations in
our San Diego and
“We embrace anything
that affords us and
our clients the opportunity to realize new
and more creative
ideas.“ —Shawn Gehle,
principle, R&A Design,
Culver City, Calif.
Design pros weigh in
on the values and demerits of 3-D renderings, AR and VR
“Good 3-Ds look just
like photographs. The
only down side is we
need to be completely
sure of all elements.
SARA BLISS (THE REALITY); ILUSTRATION BY DECORILLA (THE VIRTUAL DESIGN)
listed brands I gravitated toward
and wrote a description of my
hopes: “a little more dazzle and a
more modern, less granny, bedroom.” For the next step, clients
have the options of a phone or
video chat, an in-home consultation or a detailed online questionnaire—my choice.
Five days later, Decorilla sent
proposals by two designers. Each
2D mood board featured a color
palette, wall-art and furniture ideas
and a floor plan. The schemes felt
layered and unique.
Using Decorilla’s online chat feature, I worked with Michelle B. to
tweak her design, which included
an Inspire Q. metal canopy bed in
champagne gold from Overstock.com. I asked her to remove a
busy palm-frond wallpaper feature
behind the headboard and match
my current wall color. When I fretted that the metal-frame stools
she’d chosen might stub toes, she
subbed in faux-fur cubes.
Michelle made the changes offline and soon emailed photo-realistic 3-D imagery, a 360-degree view
and a shopping list with prices.
For $99 extra, Decorilla sent me
a link and a plastic VR headset in
which to tuck my smartphone, no
iOS11 needed. In no time, I was “in”
my room. More like VR Lite, since
it’s not interactive, the 360-degree
image had even more depth in this
view. I decided to replace the goldmetal bed frame, now clearly too
brassy, with subtler wood or nickel.
All these tools give you confidence to buy, which explains their
growing popularity among retailers. I was truly stuck when envisioning my bedroom’s potential,
and now I see that a canopy bed
would not only fit but create a
chic focal point. I’ll still, however,
test that calming gray paint before
I pull the trigger.
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remarkably realistic 3-D renderings
from four vantage points along with
a 360-degree view.
I preferred Design 2, even though
the calming gray wall color was a
mistake (the service is actually supposed to match your current color).
Sleek brass gooseneck lamps replaced my clunky swing-arm versions. In lieu of my bulky desk was
CB2’s slim, architectural marbleand-brass Dahlia desk. A painted
double chest of drawers upped my
storage options. My TV was replaced with intriguing abstract art
from Minted. Did I even need a TV
in my bedroom?
Though the basic price is $69, I’d
sprung for the $199 package, which
lets you work with a stylist to finalize the design. For an hour, I
schemed with Karina via my
phone’s screen to warm up the
space with color, pattern and art.
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Continued from page D1
camera reveals details such as the
nap of velvet upholstery or the
sheen of silk.
One glitch hung me up: The virtual beds I favored kept “hovering”
above my own. Shrenik Sadalgi, associate director at Wayfair Next,
Wayfair’s R&D group, explained
why: “While ARKit is great at detecting flat surfaces such as floors,
beds and tables, it cannot distinguish between them.” I found the
apps worked best dropping furniture into an empty space.
The AR apps were most helpful
for weeding out objects too big or
too small for my space. IKEA promises the 3-D products on their IKEA
Place are 98% accurate and Wayfair
and Houzz show the dimensions of
the piece as you view it.
IKEA’s AR app features more
than 2,000 3-D items, Wayfair has
“tens of thousands” and Houzz’s
site claims half a million. Still, I’d
often be attracted to a design that
couldn’t be viewed in 3-D, so I was
both a little frustrated and overwhelmed. Other folks are apparently finding satisfaction, however:
Houzz, which offers products for
sale, says people who engaged
with the AR tool were 11 times
more likely to purchase.
For those who want more direction, two new e-design sites,
Modsy and Decorilla, offer design
services in combination with new
rendering technology. They don’t
use AR and don’t require any particular operating system.
To sign up for Modsy—which
partners with over 100 retailers,
from West Elm to ABC Home—I
snapped photos of my room from
eight vantage points: all four corners and the center of each wall. I
uploaded them with a Pinterest link
of favorite bedrooms, then took a
15-minute style quiz. In 10 days, two
designs generated by a combination
of algorithm and human stylist arrived via email. For each, I received
Los Angeles offices.”
—Casey Mahon, design-technologies manager, Carrier Johnson +
Culture
IMITATION OF LIFE // ONE IMAGE IS A PHOTO. THE OTHERS ARE RENDERINGS FROM DIGITAL DESIGN SERVICES MODSY AND DECORILLA. WHICH IS WHICH?
2
DAVID A. LAND/OTTO (1); ILLUSTRATIONS BY MODSY (2) AND DECORILLA (3)
1
3
ANSWERS: 1. PHOTOGRAPH; 2. MODSY RENDERING; 3. DECORILLA RENDERING
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THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | D5
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D6 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
ADVENTURE & TRAVEL
A Band of
Outsiders
A
BOUT A TWO-HOUR
drive southwest of
downtown Atlanta—set
amid red-clay hills and
pine forests well beyond the highway sprawl—lies one
of America’s strangest outdoor art
sites. Pasaquan, a wild architectural
mashup, looks like some ancient
Cambodian temple complex as reimagined by an uninhibited Marvel
superhero. Its series of buildings
and outdoor walls range across several acres of former farmland, blanketed with vivid paintings of
crosses, Buddhist mandalas and astral beings—many with coneheads
and multihued complexions. Some
visitors find Pasaquan entrancing,
others disorientingly bizarre.
‘He was a guru with no
followers,’ said Charles
Fowler, Pasaquan’s
caretaker, of the artist
Eddie Martin.
Eddie Martin, who began building it in the 1950s, was one of two
granddaddies of outsider art (a
more eccentric form of folk art)
who once called rural Georgia
home. The other, Howard Finster,
first planted his Paradise Garden, a
cartoonish biblical hallucination, in
the 1970s. After the two men died—
the former in 1986, the latter in
2001—the art sites fell into disrepair. But extensive preservation efforts, fueled by a renewed interest
in Southern folk art, have revitalized both properties in recent years,
as well as a few other installations
throughout the state.
It’s always been dodgy to identify someone as an outsider artist.
Most candidates’ work is so idiosyncratic that even fans aren’t quite
sure who fits into the category.
Though rejected by the “legitimate”
art world as untrained and lacking
pedigree, several of these artists
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rose to national prominence over
the years, often after they died.
Henry Darger, for instance, spent
three decades isolated in his Chicago apartment painting watercolors and collages of an imaginary
world; a construction worker
named Simon Rodia built the monumentally whimsical Watts Towers in
his Los Angeles backyard from the
1920s to the 1950s.
The Deep South, and especially
Georgia’s countryside, produced a
bumper crop of these Outsider artists, many of whom turned nondescript rural properties into startling
creations. Here, a guide to a few of
the sites in and around Atlanta that
are well worth checking out or
planning a day trip around.
HIGH MUSEUM OF ART,
Atlanta, Ga.
Home to one of the South’s largest
art collections, Atlanta’s High Museum devotes several rooms on its
top-floor “Skyway” to works by
leading outsider (or “self-taught”)
artists. In addition to pieces by Finster, you’ll find works by Bill Traylor (1853-1949), an Alabaman
painter whose simple silhouettes
keenly document rural life, and Nellie Mae Rowe (1900-1982), a Georgia native, who specialized in vivid
paintings of fantastical people and
animals.
WONDERLAND From above: Artist
Butch Anthony at his Museum of
Wonder; Howard Finster filled his
Paradise Garden with childlike
paintings and inscrutable sculptures.
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BY CAMERON MCWHIRTER
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CURIOUSER AND CURIOUSER
After a meticulous restoration, Eddie
Martin’s Pasaquan art environment
reopened to visitors last year.
no
JARRETT CHRISTIAN FOR THE WALL STREET JOURNAL
Rural Georgia produced a bumper crop of
eccentric, self-taught artists. See their work in
the wild on trippy day trips from Atlanta
PASAQUAN, Buena Vista, Ga.
Eddie Martin’s 7-acre psychedelic
art installation reopened in 2016 after a meticulous restoration—a
joint effort between the Wisconsinbased Kohler Foundation and Georgia’s Columbus State University.
Born on this farm, just outside the
small town of Buena Vista, in 1908,
Martin moved to New York City in
1922, fleeing an abusive father. He
eked out a living as a male prostitute, soothsayer and marijuana
peddler, before moving back to
Georgia in the 1950s, inheriting the
farm after his parents had died.
For decades, Martin, festooned
in an Indian headdress, transformed the property, turning the
humble 1885 farmhouse into a temple full of odd sculptures and murals awash in neon-bright oranges,
yellows, greens, reds and blues. He
told a biographer: “I built this place
to have something to identify with,
‘cause there’s nothin’ I see in this
society that I identify with or desire
to emulate.”
The artist produced thousands
of works, from paintings to jewelry—many still on view at the
property. To earn money for paint
and building supplies, Martin, who
called himself St. EOM (for Eddie
Owens Martin), held seances and
THE LOWDOWN// WHERE TO SLEEP AND SNACK NEAR RURAL GEORGIA’S OUTSIDER ART SITES
Pasaquan’s current caretaker,
Charles Fowler.
Staying There Atlanta
has many fine hotels, but
to experience outsider art
in the evening, too, rent
the cottage next to Howard Finster’s Paradise
Garden. Rental includes a
key to visit the garden
after hours (from about
$130 a night, airbnb.com/
rooms/5338048). For a
more upscale option, try
the Barnsley Resort, a
luxury complex set amid
the ruins of an old plantation (from $259 a
night, barnsleyresort.com). To stay closer
to Pasaquan, try Mountain Top Inn and Resort
in Warm Springs, Ga.,
the town where President
Franklin D. Roosevelt endeavored to recuperate
from his paralytic illness
(from $126 a night,
mountaintopinnga.com).
Roosevelt’s cottage,
called “the Little White
House,” is worth a peek
while you’re in the area
(gastateparks.org/LittleWhiteHouse).
Eating There After visiting Paradise Garden,
head to the Harvest
Moon Cafe in the quaint
city of Rome, between
Summerville and Atlanta
for a plate of excellent
shrimp and grits (234
Broad St., Rome, Ga.,
myharvestmooncafe.com). En route to or
from Pasaquan, stop in
Columbus to gorge on
what many consider the
best fried chicken in
Georgia at Minnie’s Uptown Restaurant (104
Eighth St., Columbus,
Ga., minniesuptown.com).
exorcisms, and gave psychic readings. “He was a guru with no followers,” said Charles Fowler, the
property’s current caretaker, who
insists Martin still haunts the farm.
A two-hour drive southwest from
Atlanta, pasaquan.columbusstate.edu
MUSEUM OF WONDER, Seale, Ala.
Across the Chattachoochee River, in
the tiny Alabama town of Seale, sits
artist Butch Anthony’s Museum of
Wonder. It’s a free, drive-through
art installation, a collection of shipping containers turned into window
displays of found art, taxidermy, animal horns and old photographs.
Don’t expect the spit and polish—or
helpful explanations—you’ll find at
the High Museum or even
Pasaquan. The Museum of Wonder
is a little rough around the edges,
but if you’re lucky, the artist himself might be wandering around to
field questions. About a two-hour
drive southwest of Atlanta, museumofwonder.com
PARADISE GARDEN,
Summerville, Ga.
In the foothills of Georgia’s Blue
Ridge Mountains, Paradise Garden
occupies an old homestead in
Summerville, a sort of hard-luck
Mayberry. There, Finster, a retired
Baptist preacher born in 1916, said
he was moved, in 1976, to “paint
sacred art” and he did so with
gusto. He created more than
46,000 pieces of art in his lifetime.
Like Martin, Finster converted his
2.5-acre swampy property into a
collection of art-covered buildings
and inscrutable sculptures, from
small house made from discarded
Coca-Cola bottles to a mound of
snakes fashioned out of concrete.
Everywhere he could, he hung his
childlike paintings with biblical
phrases and religious musings.
“It’s much more unruly [than
Pasaquan],” said Katherine Jentleson, curator of the High Museum’s
folk and self-taught collection, referring to the messy conglomeration of works strewn about Paradise Garden. That unruliness
attracted a few notable rock bands
to the property over the years,
R.E.M. shot its “Radio Free Europe” video at Paradise Garden
(Finster makes an appearance in
the video), while Talking Heads
used a Finster painting for the
cover of its 1985 album “Little
Creatures.” Despite Finster’s relative fame, the upkeep of Paradise
Gardens languished after his death
16 years ago. Some of the stone
sculptures had sunk into the mud
and buildings were teetering, according to one of the caretakers.
County officials eventually took
over the site and set about making
repairs. Today the Paradise Garden
Foundation manages the property,
fueled by donations, an annual art
and music “Finsterfest,” and an
Airbnb rental building next door.
About a one-hour-and-45-minute
drive northwest of Atlanta, paradisegardenfoundation.org
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THE WALL STREET JOURNAL.
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N E W YO R K N Y 1 0 0 2 1
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THE WALL STREET JOURNAL.
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A CHILD’S ABILITY TO READ HAS
A BIG IMPACT ON THEIR FUTURE.
DONATE AND GIVE THE GIFT
OF LITERACY, OPPORTUNITY,
AND SELF-SUFFICIENCY.
HELP US AT READNYC.ORG
#SPREADTHEWORDS
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THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | D7
* * * *
ADVENTURE & TRAVEL
Winter in a Summer Town
Though tourists mob Dubrovnik come July, the most wonderful time of the year unfolds during the city’s ‘off-season’
BY DAVID FARLEY
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QUITE CONTRARY A rare snowstorm blanketed
Dubrovnik last winter. Tourists overwhelm the city’s Old
Town in summer but visitors are sparse in winter.
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one that had diminished services
would be a good bet. Without the
crush of summertime visitors,
would another side of Dubrovnik reveal itself?
The morning after my arrival in
this city of 42,000 people, I met up
with former mayor Andro Vlahušić,
the chief initiator of the Winter Festival. “We don’t need any more
summertime tourists,” he said,
echoing many of the local officials
and residents who are working to
impose a limit to high-season visitors. “So I helped to create a festival in winter.”
Not that everyone is in favor of
it. When the food and drink kiosks
popped up on the 1,000-foot-long
Stradun during the festival two
years ago—selling everything from
sausages from Slavonia, a region in
northeastern Croatia, to freshly
FAIR WAY The historic Stradun street during this year’s Winter Festival.
shucked oysters from Ston, a
nearby seaside town—many vocal
residents acted like a heresy had
been committed. Stradun is about
as beloved a street as any you’ll
ever walk. One of my local friends
told me that she won’t even ash her
cigarette on the street. When I
asked Mr. Vlahušić about the opposition to the food kiosks on the
promenade, he said much of the
fury has quieted down recently and
pointed to a historical precedent. “I
realize Stradun is a like a spiritual
place for the people of Dubrovnik.
But in the Middle Ages, Stradun
was a market street. There were
fruits, vegetables and livestock for
sale. This is a sort of return to
that—but only for a short time.”
One day I had coffee with Ivan
Vigjen, an art historian who recently headed the project to restore
the main altar of the city’s cathedral. He told me he refuses to patronize the Stradun kiosks. “I’m not
at all against tourism, but there’s
this perversion in our minds about
it,” he told me, as we sat at an outside table at a popular cafe in Old
Town. “Every March and April, I see
headlines about fixing up this or
that because the ‘season’ is coming.
I wish instead, the city would do
something for us that doesn’t necessarily have to do with tourism.”
But if attracting wintertime visitors had been the chief motivation
for the Winter Festival, the new
mayor, Mato Franković, seems to be
shifting the event’s focus to please
the denizens of Dubrovnik. “Locals
avoid places like Stradun during the
high tourism season,” he told me in
his office, “So we want them to en-
joy the city in the winter too.”
This year, the city has resituated
the center of the festivities in Old
Town, moving some of the food
stalls and kiosks from Stradun to
nearby Gundulić Square where
there are daily performances of traditional Dalmatian klapa music. An
ice-skating rink recently sprung up
in the Lapad part of town.
And as with last year, during the
festival, public transportation in
and around Dubrovnik is free after
5 p.m. to encourage locals to go to
‘We don’t need any more
summertime tourists. So I
created a winter festival.’
Old Town. For the week I was in
Dubrovnik, I witnessed plenty of
them sipping wine and eating regional Croatian fare at the kiosks
that are sprinkled around Old Town.
One Friday evening, for example,
the walled town was swarming with
residents. On one end of Stradun,
strings of blue Christmas lights
draped across a domed 15th-century
fountain and on the other end, the
100-foot, late-medieval bell tower
was glowing in white light.
An outdoor concert by a Dalmatian a cappella group had just concluded on the steps of the Church
of St. Blaise and the crowd of locals
had gravitated to the food and
drink kiosks. Traditional holiday
songs and Dalmatian folk music interspersed with tunes by Stevie
Wonder, Prince and Alicia Keys
seeped from speakers affixed to
buildings. Families shared plates of
prikle, fried dough balls, and couples toasted each other with thimble-size glasses of rakia, a fruitbased brandy that is ubiquitous in
this part of Europe.
I was tempted by the street food,
but I heard a few rumblings that a
kiosk called Gulozarije just outside
Pile Gate deviated from the sausage-and-rakia formula. I hardly
recognized anything on the menu,
which was handwritten in Croatian.
A woman sidled up to me. “You
should try the morsko jaje,” she
said. The woman, Marija Papak, the
chef of this kiosk, explained that
morsko jaje, translated as “sea egg,”
is a white sea urchin. “It’s delicious,” she said and quite rare. “You
cannot find it anywhere in Dubrovnik.” I was sold.
After the sea egg, she set down a
few more dishes in front of me. Domaci umbol is unctuous, thick-sliced
ham cured by one-month exposure
to the salty Adriatic air. Stonska
torta is a cake made in the village
of Ston and filled with cinnamon,
walnuts, almonds, chocolate, and,
most improbably, ribbons of pasta.
I’d never eaten anything like it and I
loved it.
I walked through Pile Gate, one
of three entrances to Old Town, my
feet about to hit the shiny limestone-sheathed Stradun, to get one
more look at this beautiful city in
full party mode and largely free of
tourists like me.
For more details on visiting
Dubrovnik in winter, see wsj.com/
travel.
JAKE LITTLEFIELD AND DANNIE GAO (TOP); DUBRAVKO LENERT
ly
.
S
OMETHING WAS missing
in Dubrovnik. I stood
atop the thick, imposing
walls of this Croatian
medieval city looking out
at the rickety red-tiled roofs, the
shimmering, wintry Adriatic Sea
just beyond. Then I turned my gaze
to Stradun, the wide, limestone-clad
pedestrian street that cuts through
the walled town and the city’s main
public promenade since the 13th
century. Some people milled about
chatting; others slowly paraded
down the lane.
The missing element? A throng
of tourists. What a difference a season makes in Dubrovnik. Where was
the miasma of humanity pushing
each other through the city’s narrow streets? The mustached restaurant barkers trying to lure visitors
into their eateries? The gargantuan
cruise ships lurking in the distance?
On my umpteenth visit to this
stunning Croatian city, situated on
the southern Dalmatian Coast, I decided to come during the off season. Friends here often warned me
to avoid the city in winter, saying
that it’s depressing in its emptiness.
The walled, car-free Old Town
streets are spartan. Shops and restaurants are boarded up for the season. And few hotels stay open.
But this winter may be the best
time to see the “Pearl of the Adriatic”: The city’s three-year-old Winter Festival—which runs from early
December to early January—has expanded, adding more outdoor concerts and performances. Food and
drink stands line streets and
squares. The festival has injected a
zest into Old Town that Dubrovnik
has rarely seen since the period before the early-’90s Balkan wars;
more wintertime direct flights have
been added (from London and
Frankfurt, among others); and more
hotels have begun keeping their
lights on for the winter season, offering dramatically lower rates.
That said, not everything is
open, restaurants close earlier, and
access to the walkways on the medieval walls is limited. And admittedly, it can get chilly—temperatures typically hover in the 50s, but
last year snowfall blanketed the
city. Still, I decided to find out if exchanging a tourist-mobbed city for
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.
D8 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
EATING & DRINKING
A Hail of
Caesars
New takes on the classic salad feature tweaks
way more intriguing than grilled chicken
Original Caesar Salad
TOTAL TIME: 45 minutes SERVES: 4
cheese
¾ cup olive oil
1 head chilled
romaine
lettuce,
leaves
separated
Salt and freshly
ground black
pepper
1. Make croutons: Rub bread
with garlic. In a
large skillet, heat
olive oil over medium-high heat.
Add bread in a
single layer and
toast until crisp
and golden, 2
minutes per side.
Remove from
heat and sprinkle
with salt and
Parmesan.
2. Make dressing: In a large
wooden bowl,
use a wooden
spoon to mix
garlic with anchovies, pressing
ingredients with
back of spoon to
form a paste.
Add egg yolk,
squeeze lime
over yolk and stir
to blend. Add
Worcestershire,
mustard, pepper
and half the
grated cheese,
and mix to form
a loose paste.
Add olive oil in a
slow, steady
stream, vigorously stirring,
until dressing is
thick and glossy,
Find a recipe for Shalom Japan’s
tofu Caesar at wsj.com/food.
2 minutes.
3. Make salad:
Gently roll whole
lettuce leaves in
bowl with dressing until coated.
Transfer to a
platter and top
with remaining
Parmigiano-Reggiano and croutons. Season
with salt and
pepper to taste.
—Adapted from
Caesar’s, Tijuana,
Mexico
Vegan Caesar Salad
ACTIVE TIME: 30 minutes TOTAL TIME: 25 hours (includes soaking cashews) SERVES: 4-6
For the breadcrumbs:
2 cups cubed day-old
bread
2 tablespoons olive
oil
Salt
¼ cup dulse sea
weed, kelp or nori
For the dressing:
1 tablespoon plus
1/
3 cup neutral oil
such as canola
1 cup chopped yellow
onions
Salt
2 cups raw cashews,
soaked 24 hours
1 tablespoon capers,
2 tablespoons caper
brine
1/
3 cup seasoned rice
vinegar
1. Make breadcrumbs: Preheat oven to 325 degrees.
On a baking sheet, toss bread with olive oil to coat.
Season with salt to taste. Bake until golden all the
way through, about 20 minutes. Let cool slightly. In a
food processor, combine toasted bread and seaweed.
Pulse to form coarse crumbs.
2. Make dressing: In a large skillet over medium heat,
heat 1 tablespoon oil. Add onions, sprinkle with salt
and cook until soft but not browned, about 5 minutes.
Remove from heat and let cool to room temperature.
3. In a blender, combine cashews, 2 tablespoons of
1/
3 cup lemon juice
1 teaspoon spirulina
2 teaspoons garlic
powder
1½ tablespoons
nutritional yeast,
plus more for
sprinkling
1 teaspoon freshly
ground black
pepper
For the salad:
4-6 heads baby gem
or baby Romaine
lettuce, quartered
lengthwise with
stems intact
¼ cup dulse
seaweed, kelp or
nori
4 radishes, thinly
sliced
reserved cashew soaking liquid, cooled onions, capers
and brine, rice vinegar and lemon juice. Blend on high
until smooth. Add spirulina, garlic powder, 1½ teaspoons nutritional yeast, black pepper and salt to
taste, and blend to incorporate. Add remaining oil in a
slow, steady stream, blending on high until smooth.
4. Assemble salad: Pour dressing into a large bowl.
Roll lettuces in dressing to coat. Transfer salad to a
platter. Sprinkle with dulse seaweed and nutritional
yeast. Top with sliced radishes.
—Adapted from Gerardo Gonzalez, Lalito, New York
KATE SEARS FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY NIDIA CUEVA
¼ teaspoon Dijon mustard
1 clove garlic,
minced
8 anchovy fillets in olive
oil, drained
and finely
chopped
1 large egg yolk
Juice of 1
Mexican lime
Freshly ground
black pepper
¼ cup grated
ParmigianoReggiano
ly
.
For the croutons:
½ baguette,
cut into 1½inch slices
1 garlic clove,
halved
2 tablespoons
olive oil
Salt
1/
4 cup grated
ParmigianoReggiano
cheese
For the salad:
1 teaspoon
Worcestershire sauce
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A
CLASSIC never goes
out of style. Still, an old
favorite can storm back
onto menus in unexpected ways, as the
Caesar salad has of late.
The viral popularity of the kale
Caesar helped launch the latest generation of riffs. Before considering
these, however, it’s worth asking:
What makes a Caesar a Caesar? I
put the question to chef Javier Plascencia. His family owns 13 restaurants in Mexico, including the one in
Tijuana where the Caesar was born.
Many are surprised to learn the
salad is Mexican in origin. “Even
when Mexican people find out, they
always thought it was Italian,” said
Mr. Plascencia. In fact, the inventor
was an Italian American from California named Caesar Cardini, who
opened his restaurant Caesar’s in Tijuana in the 1920s, when many
Americans crossed the border to
dine and drink beyond the reach of
Prohibition. Mr. Cardini’s dressing,
still the standard, contains anchovy
paste, fresh lemon or lime juice,
Worcestershire sauce, minced garlic,
mustard, a coddled egg yolk and
Parmesan, blended with oil to form
a thick, glossy emulsion. Spears of
romaine tossed with this dressing
get a further sprinkling of grated
Parmesan and a topping of garlicky
croutons. The salad was designed to
be eaten, like fries, with your hands.
The Plascencia family rescued
Caesar’s restaurant from the brink
in 2010. “When we took over, it had
been shut down for a month. All the
furniture was in the street and on
the sidewalk,” said Mr. Plascencia,
whose godfather was a bartender at
the original Caesar’s. They restored
the space to its original glory along
with its tableside Caesar salad preparation. Bow-tied waiters called ensaladeros make about 3,000 of the
salads a month.
The ensaladeros mix the dressing
in wooden bowls, which get seasoned with the Caesar flavors over
time. It’s also important to squeeze
the citrus juice over the egg yolk to
lightly “cook” it with acid, and to
use a neutral oil such as canola or to
blend a milder oil with olive oil so
its flavor doesn’t overwhelm the
dressing. “When you have a really
good pasta dish in Italy, it tastes different,” said Mr. Plascencia. “When
you are having a Caesar salad in Tijuana, it just tastes different.”
Outside Tijuana, inventive chefs,
including Gerardo Gonzalez, chefowner of Lalito in New York City,
have captured the soul of the Caesar
using unconventional ingredients. “I
feel a connection to the Caesar,”
said Mr. Gonzalez, who grew up in
San Diego, just across the border
from Tijuana. “It reminds me of
growing up—it’s a representation of
regional pride.” Lalito’s vegan Caesar has a dressing with a base of cashew cream, which lends silky body
without the eggs. The salinity comes
courtesy of spirulina and caper
juice, plus seaweed in the bread
crumbs. Nutritional yeast takes the
place of cheese.
At Shalom Japan, a Jewish-Japanese restaurant in Brooklyn, husband-and-wife chef-owners Aaron
Israel and Sawako Okochi offer a
Caesar with a tofu-based dressing
and za’atar-seasoned croutons.
White soy sauce, saltier and cleaner
in flavor than dark soy, is an analogue to Worcestershire. In place of
romaine, Mr. Israel sometimes uses
the red-leafed chicory Castelfranco,
a nice bitter counterpoint to the rich
dressing. Plenty of garlic, a flurry of
parm and white anchovy fillets
make it unmistakably a Caesar.
All of which attests to the enduring appeal of the crunchy, garlicky,
savory salad. “When I have my last
meal,” said Mr. Plascencia, “I will
probably ask for a Caesar salad on
the side.”
n-
BY GABRIELLA GERSHENSON
no
SLOW FOOD FAST SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES
Winter-Vegetable Rice Bowl With Fried Egg
His Restaurants
610 Magnolia and
MilkWood in Louisville, Ky., Succotash
in National Harbor,
Md., and Succotash
DC in Washington,
D.C.
What He’s
Known For
Highly personal takes
on Southern dishes,
often referencing the
Korean cooking he
grew up on.
He tosses cauliflower florets and diced
sweet potato with olive oil, lemon zest
and salt, then roasts them to concentrate
their flavors. Collard greens get a quick
sauté, just to wilt them. A fried egg lends
substance. Feel free to add strips of seared
flank steak or another protein, if you like.
For the sauce, Mr. Lee uses gochujang,
the fermented chile paste, found at Asian
markets and many supermarkets. He advises steering clear of pre-made gochujang
sauce. “You see it in squeeze bottles because it sells, but it’s watery, less potent
and has added sugar,” he said. “If you can,
find the pure paste with Korean writing
on the label.” Some things, it seems, are
not negotiable. —Kitty Greenwald
KATE SEARS FOR THE WALL STREET JOURNAL, FOOD STYLING BY JAMIE KIMM, PROP STYLING BY NIDIA CUEVA; JOE MCKENDRY (PORTRAIT)
The Chef
Edward Lee
IN HIS COOKING, Edward Lee has always
shown a healthy regard for tradition. “But
I hate that it gives people license to say
you’re wrong,” he said. Take bibimbap, the
Korean rice bowl this recipe is based on.
Too often, Mr. Lee laments, the dish features the same, conventional combination
of ingredients. “The term means mixed
rice,” he said. “So people should add
whatever they like!”
For his second Slow Food Fast contribution, the chef shares his own take. He
likes a base of black rice, a whole-grain
variety with a nice chew to it, but he’s
also apt to opt for a long-grain white rice
from the Mississippi Delta. “Be creative,”
he said. “There’s so much rice out there.”
TOTAL TIME: 30 minutes SERVES: 4
2 cups rice
1 small head cauliflower,
cut into small florets
1 large sweet potato, diced
Kosher salt
5 tablespoons olive oil
Juice and zest of 1 lemon
1 yellow onion, sliced
11/2 pounds collards, ribs
removed and leaves
1. Pre-heat oven to 400 degrees. Prepare rice
according to package instructions.
2. On a baking sheet, toss cauliflower and
sweet potatoes with a generous pinch of salt,
1 tablespoon oil and lemon zest. Spread vegetables across baking sheet and roast on middle rack of oven until fork-tender and browned
in spots, about 25 minutes.
3. Set a large skillet over medium heat and
swirl in 2 tablespoons olive oil. Add onions
and sauté until they begin to brown, about 5
minutes. Add collards, season with salt and
roughly chopped
4 tablespoons gochujang
2 tablespoons water
2 teaspoons honey
4 eggs
sauté until greens wilt, about 5 minutes.
4. Make gochujang sauce: In a small bowl,
whisk together gochujang, water, honey and
lemon juice.
5. Fry eggs: Heat 2 tablespoons oil in a large
skillet. Crack in eggs and fry, sunny-side up,
until whites set and yolks are warmed
through. Season yolks with salt.
6. Spoon rice into 4 bowls. Arrange cauliflower, sweet potatoes and collards on rice.
Top each bowl with a fried egg and a drizzle
of gochujang sauce.
CHANCE OF DRIZZLE Mixed with lemon juice, honey and water, savory
gochujang chile paste makes a deeply flavorful sauce for this rice bowl.
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.
Saturday/Sunday, December 16 - 17, 2017 | D9
* * * *
EATING & DRINKING
MEGAMEAL
Kale With a Side of Hedonism
Northern Germans like their leafy greens with plenty of pork. This classic dish delivers comfort in the depths of winter
BY J.S. MARCUS
toffeln, an oniony cousin of
hash browns. I opted for the
default pairing, which also
happens to be the easiest to
make: salzkartoffeln, or waxy
potatoes halved and boiled in
very salty water.
The recipe warned not to
let the oats fall to the bottom
of the pot and scorch, so I
carefully sprinkled and integrated them into the surface
of the kale. Twenty minutes
later I had my first real taste.
The kale was tender and
smoky and delicious, and the
oats were delightfully nutty. I
rewarmed the meat slowly on
top of the kale mixture, then
considered my presentation.
When plating grünkohl,
Germans often give the sausages star billing by serving
them atop a nest of kale. I decided to make kale my centerpiece and pushed the sausages and potatoes to the
side, finishing it all off with a
dollop of mustard at the
plate’s edge. Then I sat down
with a cold Berlin-style pilsner and dug in.
Now I know why Germans
struggle with buckling plastic
plates of grünkohl at outdoor
markets and defy decorum by
scarfing up the humble dish in
upscale restaurants. They’re
recalling the deep pleasure of
a home-cooked meal, and
from now on I can too.
Grünkohl (North-German-Style Kale)
You can find the kassler rippchen (cured and smoked German-style pork chops) for this recipe at
specialty butchers, or online at schallerweber.com. Or, substitute 4 thick slices of smoked
pork butt. A cold beer or a German red wine such as Spätburgunder pairs well with this dish.
ACTIVE TIME: 1 hour TOTAL TIME: 3 hours SERVES: 4
co Fo
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Pinkel are hard to come by in
my corner of the country, so I
substituted a smoked kielbasa-style sausage. I also included kassler rippchen, the
cured and smoked pork chop
called for in many versions of
the recipe, and I rounded
these out with a knackwurststyle sausage.
ly
.
LEAF IT This hearty
spread mixes braised
kale with sausages
and boiled potatoes.
The kale comes to the
table with a whopping
helping of pork
products and a pile of
boiled potatoes.
n-
While the broth simmered, I blanched the kale.
Had my pan been bigger, I
could have done what most
Germans do—fry up some
bacon and onions, then sauté
the kale before adding the
broth. Instead, I added the
broth to my sauteed ingredients, brought it all to the
boil, then tossed in kale by
the handful, allowing it to
wilt before adding more.
In Holstein, the area
around Hamburg, natives
glaze the accompanying
boiled potatoes with sugar;
alternatively, some Germans
serve their kale with bratkar-
For the broth:
4 knackwurst
4 kielbasa
11/2 pounds kassler rippchen
1 (4-ounce) slice of
celery root
1 onion, coarsely chopped
5 cups water
¼ teaspoon salt
DON’T DROP THE BALL
F. MARTIN RAMIN/THE WALL STREET JOURNAL
The holiday cheese ball is a tradition too delicious to fall victim to petty snobbery
IF YOU THINK of the cheese
ball as a sort of holiday
punchline, get over it. I’m
not talking about the Cryovacked orb of processed pap
in the supermarket dairy
section. A homemade cheese
ball is another thing entirely.
Sure, it requires some pluck,
at first, to plunge the cheese
knife in: Attacking a pristine
cheese ball with its coating
of chopped nuts intact feels
a little like a desecration,
and one already mauled by
other guests may call to
mind a crime scene. But once
you schmear that combo of
cheese and cream cheese on
a cracker and experience the
textural delight of creamy
plus crunchy, all inhibitions
will fall away. For the cook,
a cheese ball is also an invitation to creativity. Why
not brighten it with fresh
herbs and lemon zest? Take
the ball and run with it.
The recipe at right is my goto—eminently adaptable
and a terrific canvas for experimentation. Make one
for your next shindig. It’s
so much easier than baking
cookies, and every bit as
festive. —Eleanore Park
For the kale:
2 pounds kale, stems and
stalks removed
2 onions, chopped
6 ounces Speck or slab
bacon, coarsely chopped
2 teaspoons salt
1 teaspoon black pepper
3 tablespoons sugar
1.Make broth: In a covered medium saucepan,
combine kassler rippchen and vegetables. Add
water and bring to a simmer. Cover and simmer over low heat 30 minutes. Pierce casings
of sausages with a fork, then add to pot,
cover again and simmer 20 minutes more.
Discard vegetables. Remove sausages and
meat, and set aside on a plate, covered with
foil. Season broth with salt to taste.
2. While broth cooks, prepare kale: Fill a large
stock pot with water and bring to a boil. Add
kale and blanch 1 minute. Drain and rinse in
cold water to halt cooking. Dry kale with paper towels, then chop into thin ribbons.
3. In a large pot or Dutch oven, fry bacon over
medium heat until fat begins to render out,
1-3 minutes. Add onions, reduce heat to medium-low and cook until translucent and bacon begins to brown, 4-5 minutes. Pour in 3
cups broth and scrape up browned bits from
bottom of pan. Add salt, pepper, sugar, allspice and mustard. Increase heat and gradually add chopped kale. Stir well and slowly
no
BITE-SIZE DIATRIBE
BRYAN GARDNER FOR THE WALL STREET JOURNAL, FOOD STYLING BY EUGENE JHO, PROP STYLING BY VANESSA VAZQUEZ
I
N THE U.S., kale became curiously faddish a few years
back. In northern
Germany, where I
have spent a good part of
the last few decades, this
leafy green is more soul food
than superfood.
Grünkohl, as the vegetable
is known here, features centrally in a classic coldweather dish of the same
name. Braised in a smoky
pork broth and further flavored with mustard, sugar
and a dash of allspice, the
kale comes to the table along
with a whopping helping of
pork products and a pile of
boiled potatoes. Somewhat
sweet, surprisingly pungent
and unabashedly porky, the
dish has a trademark chewy
texture thanks to an unlikely
but essential ingredient:
steel-cut oats, added near the
end of cooking.
Germany’s kale belt begins
in the far northwest, in the
harbor cities and flat countryside that run along the North
Sea coast, and extends to the
Baltic Sea towns north of Berlin, where I live. Though it
can be found as a niche item
year-round at health food
stores and organic markets,
kale comes into its own in
mid-November, when it takes
pride of place in the produce
aisle of just about every grocery store in the northern
quarter of the country.
Over the years, I’ve tried
my share of grünkohl at outdoor Christmas markets,
where it is sold out of enormous, steaming pans, and I
have occasionally ordered it
at elegant restaurants in Berlin and Hamburg. But until
this past fall, I had never
made grünkohl at home.
I knew that Bremen, one of
Germany’s leading ports, vies
for the title of grünkohl capital. So I called up chef Arnd
Feye, managing director of
the Bremer Ratskeller, the
grand but cozy restaurant in
the basement of Bremen’s historic city hall. He shared the
restaurant’s recipe, which
calls for simmering a combo
of sausages and pork cuts
along with a few root vegetables to make a broth. In the
northwest of Germany, grünkohl lovers insist on pinkel, a
grainy smoked sausage that’s
as much oats as it is meat.
ON BASE Though
cheddar is the more
common cheese-ball
foundation, Muenster
lends a creamier texture,
and its mild flavor lets the
other ingredients shine.
bring to a boil, then cover, reduce heat to low
and simmer until liquid reduces to the point
where mixture is moist and 1-2 inches broth remain in pan, about 11/4 hours. Add broth during
cooking as necessary to prevent pan from drying.
4. While kale is cooking, boil potatoes: Place potatoes in a large saucepan and fully cover with
water. Add salt and bring to a boil over mediumhigh heat. Reduce heat to medium-low, cover
and simmer until potatoes are easily pierced with
a fork, 35-45 minutes. Drain and keep warm.
5. Once kale has cooked, sprinkle oats on top
and press into surface of kale with a spoon. Simmer over low heat until oats soften, 15 minutes.
Place sausages and meat on top of kale, and reheat slowly, 15 minutes.
6. Remove meat and sausage from kale and
arrange on a large platter. Create a bed of kale
on each plate, and then arrange meat, sausages and potatoes on top or alongside. Serve
with a dollop of mustard.
—Adapted from the Bremer Ratskeller, Bremen,
Germany
CRAFTED
BY
MASTER
KNIFE
MAKERS
SINCE
1814.
8" Santoku
Sale: $99.99
Thru: 1/31/18
Cheesy-in-the-Right-Way Cheese Ball
TOTAL TIME: 2½ hours (includes chilling) SERVES: 16
Use an electric mixer to beat together 21/2 cups
grated Muenster cheese, 8 ounces cream
cheese, softened, 2 tablespoons crème
fraîche, 2 tablespoons prepared horseradish,
2 teaspoons sumac and 2 teaspoons Tabasco
until well combined. Season with salt and
freshly ground black pepper to taste. //
Spoon cheese mixture onto a piece of plastic
wrap, shape into a ball and wrap tightly. Transfer
cheese ball to refrigerator and chill at least 2
hours. // Cover a rimmed baking sheet with 1
cup toasted and chopped mixed nuts such as
almonds and pecans. Roll cheese ball in nut mixture, pressing lightly to make nuts adhere, until
cheese ball is evenly covered. // Serve with your
favorite crackers and zero shame.
1 teaspoon ground allspice
4 cup yellow mustard, plus
more for serving
1/
4 cup steel-cut oats
For the potatoes:
11/3 pounds waxy potatoes,
washed, peeled and
halved
1/
4 cup salt
1/
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.
D10 | Saturday/Sunday, December 16 - 17, 2017
THE WALL STREET JOURNAL.
* ***
GEAR & GADGETS
HONDA
CIVIC DISOBEDIENCE
The suburban staple gets a
racetrack-worthy upgrade,
topping out at 169 mph
RUMBLE SEAT DAN NEIL
takes reflect shock and disbelief,
what Joseph Conrad called the fascination with the abomination. With
its punched-out fenders, front
wraparound aero skirting, and a
rear wing like a basket handle, the
Type R is a mutant, a perversion of
the regular Civic. Even the third
tailpipe sticking out the back is unsettling, the sport-compact equivalent of a supernumerary nipple.
The car’s styling is the first and
tightest decision-gate. If you don’t
fit through, you were never meant
to. These are the clothes of careless,
callow youth. All the young dudes
Length/Height/Width/Wheelbase
179.4/56.5/73.9/106.3 inches
Curb Weight 3,117 pounds
0-60 mph 5.7 seconds
Top Speed 169 mph
EPA Fuel Economy 22/28/25 mpg,
city/highway/combined
Max Cargo Capacity 46.2 cu. feet
no
Base Price $34,990
Powertrain Intercooled and turbocharged 2.0-liter DOHC inline four
cylinder; six-speed manual transmission; front-wheel drive only
Horsepower/Torque 306 hp at
6,500 rpm/295 pound-feet at
2,500-4,500 rpm
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2018 HONDA CIVIC TYPE R
driving the car want to go unnoticed exactly as much as the guy at
Comic-Con dressed as Deadpool.
Honda rejects the charge of overstyling with a straight face. These
aero appliances contribute a useful
amount of stabilizing downforce,
the company noted, up to 66
pounds at 124 mph. Honda also
noted the aero sleekness helps it
reach a top speed of 169 mph.
Brawny fenders enclose the Type
R’s wider track (2.4 inches more
than the Civic) and wicked 20-inch
wheels, dipped in Z-rated Continental tires. The lowered center of
gravity is made ornerier still with a
heavily revised suspension, including a dual-axis strut front end, to
eliminate torque-steering effects;
beefier rear multilinks with revised
geometry; and roll and spring rates
roughly double standard Civics.
The ride quality is a bit tympanic, as you might expect. But
don’t worry: The Type R’s multimode drive system includes adaptive damping (Comfort, Sport and
+R) so you are able to select the desired degree of bruising.
Can you believe it? This funsized Visigoth notched a 7:43.8 on
the Nurburgring Nordschleife.
That’s quicker than a first-generation Lamborghini Gallardo (2007),
or Ferrari 599 GTB. And it did it
with a stick and front-wheel drive.
I had never actually driven a
Type R before his badness showed
up a few weeks ago. Along with VW
Golf R, Ford Focus RS and Subaru
WRX STI, the Type R is canonical in
global car culture, from “Fast & Furious” to Forza Motorsport gaming
to about a billion YouTube videos
(try the clip of ex-Formula One ace
Riccardo Patrese taking his wife
around the Jerez racetrack).
But because U.S.-market Civics
were of a different design than
those sold in Japan, we didn’t get
the full factory upfit until 2017,
mounted on the globally harmonized, tenth-generation Civic.
And we’re not getting many.
Honda said the model year 2018 allotment is 5,000 cars.
For younger enthusiasts, the
Type R’s no-option, six-speed manual transmission is the club’s secret
handshake. An estimated 5% of cars
sold in the U.S. last year were
equipped with standard transmissions, and fewer than 20% of Americans still know how to use one, and
most of them are, shall we say, old.
While modern automatics are
quicker, faster, stronger and
smarter than manual transmissions,
they are also a little boring. The
Type R is for the few, the rare,
those who want to stir their own.
Hunn! This will make your pizza delivery kid feel like Senna.
But, crucially, the driver’s footwork always has priority over the
computer, so drivers can practice
until they are right on top of the
computer’s perfected algorithms.
Those vain of skills can also turn
the function off.
The engine is the perfect dance
partner for the gearbox: a swelling,
free-spooling 2.0-liter turbocharged
four, putting out a maximum 306
hp (153 hp per liter of displacement) at 6,500 rpm, and 295
pound-feet of torque between
2,500-4,500 rpm. Thanks to its low
reciprocating masses (a lightweight
crankshaft and low-mass flywheel),
the engine’s throttle response is
light-switch quick, with revs and
power rising together to a shimmering seven grand, upshifts punctuated by the zing-chuff of the
turbo’s electric wastegates.
The e-boosted steering feels
heavy and sensitive at the edges.
Out on a winding country road, the
Type R just seems to get happier
the harder you drive it—blip, snur,
pop, slither!—which means it’s most
delighted just before you are issued
an orange jumpsuit.
The greasy bits include a helicalstyle limited-slip differential (not
brake-based) to get the power
down, and it does. This thing rips
out of tight bends under power, the
front end fighting, catching grip,
drifting with purpose, the turbo
zinging. The 0-60 mph time of 5.7
seconds is deceptive, a slow start
for the traction-limited front driver.
Once it’s up on its cleats, forget
it. This is the best driving frontdrive car I’ve ever had the pleasure,
a halo car for working-class angels.
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PERHAPS IT’S A SIGN of the
times, but lately, when I’m out testing some megabuck crotch-stuffer, I
see fewer displays of spontaneous
admiration and signals of motorhead fellowship. I mean, there’s that
one with the middle finger.
But the new Honda Civic Type
R—which, honest to God, Honda is
giving away at $34,990 MSRP—gets
all kinds of love on the streets from
all kinds of people with all kinds of
student loans. In the world of the
attainable, this thing is a supercar.
I’m allowing that some fraction
of the turned heads and double-
ly
.
Honda Civic Type R: The Attainable Supercar
The Type R is a halo car
for working-class angels,
with one hell of an engine.
But who will teach the children?
The Type R’s gearbox is newbie didactic, thanks to a function called
automatic rev-matching. Where experienced drivers would heel-andtoe while braking/downshifting for
a corner—rapping the accelerator
pedal with the side of the right foot
while still holding down the brake—
the Type R’s software automatically
revs the engine to the perfect rpm,
matching the flywheel the instant
before you release the clutch. Hunn!
NO AVERAGE JOE
Fed up with Folgers, outdoor adventurers have forged a better
class of instant coffees you can brew anywhere—just add water
tion process, recipe and the technology,” including proprietary
steps, help preserve the characteristics of his coffee during drying.
He wasn’t alone in seeing an opportunity. With both coffee snobbery and outdoorsiness on the
rise, there’s a healthy market for a
better cup of joe that can be
brewed around campfires, on
mountainsides or just in a pinch.
Over the last two years, several
entrepreneurial boutique instant
brands have come to a boil, including Alpine Start, founded by rock
climber Matt Segal, and Stoked
Stix, conceived by ultrarunner Jax
Mariash. There’s even instant Cusa
Tea created by Jim Lamancusa, an
avid backpacker who created his
own dehydration process.
The coffees and teas are sold in
single-serve packs that can be
stashed almost anywhere (pockets,
socks, under a hat), ideal for those
going deep into the wild who want
to conserve their energy for things
like survival. —Brigid Mander
1
3
F. MARTIN RAMIN/THE WALL STREET JOURNAL
EACH TIME Kent Sheridan went
camping with his family he diligently shoehorned fresh coffee
beans, a hand grinder and a pourover brewer into his rucksack. A
disciple of the perfectionist coffee
culture in his hometown, Bend,
Ore., Mr. Sheridan would not, could
not, tolerate a cup of instant coffee.
Maintaining precipitously high
standards had a downside, however. “It was a lot to lug around,”
he said. “On top of that, I’d have to
get up before everyone else. I began to think, ‘What if instant coffee could actually be good?’”
So Mr. Sheridan launched Voilà,
an instant coffee brand that packs
French-press flavor into pouches
roughly the size of sugar packets.
Steering clear of the shoddy
beans traditional instant brands
use, Mr. Sheridan instead partnered with top roasters to develop
complex blends of beans from Colombian, Guatemalan and Ethiopian fields. But the real secret, he
said, is his method: “The prepara-
2
4
1 Voilà
2 Mount Hagen
3 Alpine Start
4 Cusa Tea
Each box offers a variety of
five unique, complex blends.
The brews have rich aromas
and fresh tastes, we found,
with nothing thin or instanty about them. $20 for five
servings, voila.coffee
Made with organic and fairtrade beans, this instant is
robust yet smooth. There’s
a caffeine-free version for
those who just like the
taste. $10 for 25 servings.
mounthagen.de
A smooth, easy-to-drink cup
of java. We found this Boulder, Colo., company’s brew
less complex than others,
but it still has a nice morning kick. $9 for eight packets, alpinestartfoods.com
Using leaves from organic
plantations in Asia, this instant tea is available in five
flavors, including English
Breakfast, Oolong and
Lemon Black. $10 for 10
servings, cusatea.com
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Saturday/Sunday, December 16 - 17, 2017 | D11
* * * *
GEAR & GADGETS
Snap Out of It
Phones take photos so easily they’re often crammed with lousy, repetitive shots. A beginner’s guide to zapping the clutter
BY SARA CLEMENCE
Ruthlessly culling your photo collection can be as emotionally taxing as
going KonMari on your household.
But it can be just as rewarding.
First, deal with dupes. Apps like Duplicate Photos Fixer ($1.99, duplicatephotosfixer.com) help you find
identical and visually similar images
in your library and make it simple
to delete the copies.
Next, manually trash blurry photos and those useless mirror selfies,
sunsets and latte art that didn’t
make the cut for Instagram.
Now come the more wrenching
decisions. Isabelle Dervaux, a former illustrator who organizes photos for clients in New York, recom-
mended setting a cap on the
number of photos you keep. She
suggested sticking to an amount
you can efficiently use as a library,
deleting all but 100 photos a month,
for instance, or 1,000 per year.
How do you know which darlings
to kill? Ms. Dervaux said to hang on
to pics that are especially beautiful
or emotionally meaningful. “You
might have a photo that’s blurry—
but it’s the one picture of your
grandmother,” she said. When shots
tick all the boxes, click the heart at
the bottom of iPhone’s Photos app
to mark it a favorite. You can also
create a “Best of” album by clicking
the plus sign at the top of the app
and digitally checking ones to keep.
Then, let the rest go. “If the picture makes my pulse race a little
bit, it gets a heart,” said Mr. Dolan.
“One percent of our pictures are
great. Skim them off the top and
you have a chance of winning the
battle.”
If the process makes you nervous, put shots that you’re debating
eliminating in a separate album
marked “For Review,” then set an
alert to circle back soon.
Playing Tag
Once you’ve whittled down your library, download it all to your computer and start adding digital labels
like “anniversary” or “intimidating
class reunion” to each photo. You
might have to do this manually, but
it’s a worthwhile hassle to help you
and future generations find what
you’re looking for later.
“It’s one of the things we struggle
with daily,” said Brett Carnell, head
of technical services for prints and
photographs at the Library of Congress “Down the road, if you haven’t
given information about your photo,
it won’t mean anything to anyone. If
it’s important enough to keep, it’s
important enough to label.”
Back It Up
Floods and house fires were once
the biggest threats to family photos.
Now it’s hardware meltdowns and
cloud-service glitches. When the image-storage service Picturelife shut
down without warning in 2016,
more than 200 million photos disappeared with it.
“I can’t stress redundancy
enough,” said photographer Rob
Howard, who shoots ads for some
of the world’s biggest brands. You
should keep at least three copies of
important shots in different spots—
say, on your phone or computer, on
the cloud and on an external drive.
Develop New Habits
Don’t stop snapping shots—why
should you?—but remember to regularly trim the fat each month.
The final step is to go old school:
Print and proudly display the best
ones. In his living room, Mr. Dolan
has a tray of mini photobooks from
his family’s summers in Ireland.
(See “Instagram for Your Coffee Table,” below, for tips.) “Otherwise,
people shoot pictures and don’t really enjoy them,” he said. “And the
digital angst goes on and on.”
no
n-
INSTAGRAM FOR YOUR COFFEE TABLE// ANALOG WAYS TO SHOW OFF THE IMAGES YOU’VE KEPT
The Bespoke Book: The Album Room
The Not-So-Basic Box: Gaylord Archival
If you fancy a wedding (or baby, or bat mitzvah) book with the
style and heft of a monograph, turn to this New York-based
specialist. You provide photos, they make them look perfect
and will tweak the book until you’re happy. Most albums come
with silk, linen, leather or buckram covers, with endless embossing options. From $750, including design, albumroom.com
Boxes made for storing photos can be so, well, square, in their
institutional shades of brown. Gaylord’s sturdy Blue B-flute
box holds about 1,700 photos upright, with easy-to-browse dividers for organizing. It’s acid- and lignin-free to keep prints
safe from damaging chemicals, has metal-reinforced corners
for durability and comes in robin’s egg blue. $29, gaylord.com
The
Ultimate Gift
for Him
ARC5 SHAVER: ES-LV95-S
The Social-Media Record: Artifact Uprising
The Everyday Album: Kolo
Albums for Instagram shots put this Denver-based company on
the map, but a focus on quality has kept it there. Founded by
professional photographer sisters, Artifact Uprising is a go-to
for design mavens who want to bring their digital shots into
the analog world. The books get high marks for color accuracy,
layouts and use of recycled paper. From $15, artifactuprising.com
Occasionally you just want to slip into something simple—
maybe your photos do, too. Kolo makes minimalist albums
bound in colorful Italian-milled cloth. Some books let you swap
out the archival-quality pages, so you can choose to slot your
shots into clear sleeves. Others come with scored-hinged binding so the book lays flat when open. From $18, kolo.com
ILLUSTRATION BY JOSH MCKENNA; F. MARTIN RAMIN/THE WALL STREET JOURNAL (ARTIFACT UPRISING AND KOLO)
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Pixel Purge
ly
.
E
VERY PHOTO shot
during a typical GenXer’s childhood could
probably fit in one
thick album—a real album, the kind with gold-leaf embossing, “magnetic pages” and misaligned rings.
Now those Gen-Xers are snapping thousands of photos of their
(debatably) cute kids on smartphones each year. It’s instant, it’s
easy, it’s cheap—no film to buy or
develop, no need for space in dusty
shoeboxes or drawers.
But the torrent of images flooding devices creates new challenges.
How do we manage the data clutter? “It’s a universal problem,”
sighed New York-based professional
photographer John Dolan. “It’s the
unbearable lightness of digital.”
Tech companies have made it
simple, and often inexpensive, to
shove pics onto cloud servers, turning us all into digital hoarders. But
an endless scroll of shame still
hides neatly in pockets and purses
until we struggle with dwindling
smartphone memory or have to flip
through countless crummy shots to
find the one where everyone is
smiling. Wait, no, I was looking for
another one. One sec.
Methodically organizing and editing your photo library is a tall
task, but it means less scrolling,
less used storage and more time enjoying images worthy of attention.
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.
D12 | Saturday/Sunday, December 16 - 17, 2017
* ***
THE WALL STREET JOURNAL.
EXHIBITION
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NEW YORK
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