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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
WEDNESDAY, DECEMBER 20, 2017 ~ VOL. CCLXX NO. 145
* * * * * *
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YEN 112.89
How the GOP plan stacks up among the
biggest revisions to the U.S. tax code
Humana and two private-equity firms confirmed
they plan to buy Kindred,
and Tenet said it is exploring a sale of Conifer. B1
A Senate panel rejected
Trump’s pick to run the ExIm Bank, escalating a GOP
rift over the agency. B6
BHP is threatening to
leave a coal industry group
and the U.S. Chamber of
Commerce over disagreements on climate policy. B1
German authorities accused Facebook of abusing
its market dominance in its
collection of user data. B4
Regulators would have
more discretion to decide
which banks to target for
stricter oversight under a
bill passed by the House. B6
The eight largest and most
complex U.S. banks avoided
a major rebuke on their latest “living will” plans. B6
Declining tech shares
dragged down U.S. stocks.
The Dow shed 37.45 points
to finish at 24754.75. B15
80
Quarterly change in GDP before and
after major U.S. tax law changes
Most recent 20 quarters
5%
0
-5
60
60%
40
40
20
GOP plan: 37% 20
BY RICHARD RUBIN
GOP plan: 21%
0 1960 ’70
20
Quarters prior to change
15
10
Year change enacted
5
5
’80
’90
2000 ’10
Quarters after change
10
15
0
1960 ’70
20
2001
10%
5
0
-5
World-Wide
Congress stood on the
verge of passing a $1.5 trillion tax cut and the largest
structural overhaul of the
tax system since 1986. The
Senate cleared the measure,
51-48, after it sailed through
the House on a 227-203 vote.
A glitch forced GOP leaders
to schedule another House
vote Wednesday. A1, A4-6
The White House blamed
North Korea for a May cyberattack that crippled hundreds of thousands of computers around the world. A8
1.1%
10%
5
0
-5
Bush 2001
0.7%
Reagan 1986
1981
10%
5
0
-5
0
Saudi Arabia intercepted
a missile fired by Yemen’s
Houthi rebels over Riyadh, a
potential flashpoint in the
Saudi-Iran relationship. A10
Beijing chided the U.S.
for labeling China a “rival”
power, saying that Trump’s
confrontational rhetoric
would be self-defeating. A8
House Republicans were
expected to delay a vote on a
stopgap bill needed to avert a
government shutdown. A2
The House disclosed that
it paid over $300,000 to
settle bias and harassment
claims against members’ offices over five years. A2
Peru’s Congress votes
Thursday on whether to remove the president over a
scandal linked to Brazilian
conglomerate Odebrecht. A12
Died: Cardinal Bernard
Law, 86, Catholic prelate
who fell from grace amid a
clerical sex-abuse scandal. A3
Opinion.............. A19-21
Property Report B8-9
Sports....................... A18
Technology............... B4
U.S. News............. A2-6
Weather................... A18
World News..... A8-12
>
Bill was revenue neutral but
cut tax rates
Reagan 1981
2.9%
1964
10%
5
0
-5
Kennedy 1964
1.6%
Note: GOP plan estimate is based on Joint Committee on Taxation’s revenue estimates. Revenue declines based on average over first four years except 1964, which is based on first two years.
President Johnson signed President Kennedy’s proposed tax cuts.
THE WALL STREET JOURNAL.
Plan to Test GOP’s Economic Pledge
BY NICK TIMIRAOS
AND KATE DAVIDSON
investment and hiring. A rewrite of tax laws covering international profits is meant to
bring corporate
ANALYSIS funds
home.
Lower individual
rates are meant
to give households more
money to spend or bolster
their finances. Fewer breaks,
in theory, would make the
economy more efficient.
Still, the case for sustained
The U.S. economy is about
to become the proving ground
for GOP tax-cutting theories.
President Donald Trump
and congressional Republicans
are betting their tax overhaul
will jolt the economy after a
long but slow expansion. A
sharp cut in the corporate-tax
rate is meant to spur business
Gene Therapy for
Vision Approved
BY PETER LOFTUS
but the first to target a disease
caused by a single faulty gene.
The others use genetic modification of patients’ cells to treat
forms of cancer.
Philadelphia-based Spark
Therapeutics said it won’t announce the therapy’s price until
January, but it has signaled it
could be high. “We believe the
value of the treatment is in excess of $1 million,” CEO Jeff
Marrazzo said in a recent interview, echoing a remark he made
on a November earnings call.
He said such a price would
be justified because in clinical
trials Luxturna improved vision
in patients whose condition
typically deteriorates to neartotal blindness if left untreated.
Please see GENES page A12
Regulators approved the first
therapy in the U.S. that replaces
a faulty, disease-causing gene
with a healthy one—a treatment that its maker has said
could cost more than $1 million.
The injected gene therapy
from Spark Therapeutics Inc. is
designed to improve sight in
people with a rare form of vision loss caused by an inherited
genetic mutation. The condition, retinal dystrophy, often
manifests itself in young children and affects up to 3,000
Americans, Spark said.
The therapy, Luxturna, is the
third gene-based treatment the
Food and Drug Administration
has approved in recent months,
no
Investigators likely will examine whether the engineer
in Monday’s Amtrak crash
could have been distracted by
a second person in the cab. A3
Major tax law changes
in the U.S.
1986
You’re a Bitcoin Millionaire—
Unless You Forgot Your Password
i
i
faster growth is murky when
looked at through the lens of
history, and no sure thing now.
The 1960s and 1980s saw solid
economic growth after Democrats and Republicans lowered
individual and corporate rates.
But U.S. growth languished in
the 2000s after two rounds of
tax cuts, and a tax increase on
high-income households in
1993 didn’t hamper a burgeonPlease see RATES page A6
Where China
Is Always Watching
INSIDE
i
this year to more than $19,000.
(It traded at around $17,000
Tuesday evening.) Even techWhat’s worse than missing nology titans have found themout on bitcoin’s 1,900% rally? selves in the predicament: Elon
Not being able to access your Musk tweeted last month that
windfall because you forgot he’d misplaced part of a bityour bitcoin password.
coin.
Many who bought bitcoin
Philip Neumeier bought 15
years ago now find
bitcoins for around
themselves sitting
$260 in 2013, when
on an untouchable
he was deciding
bounty.
Because
whether to accept
they can’t remember
the virtual currency
the complex security
on his e-commerce
codes needed to get
site. Now that his
to their bitcoins, the
cache
has
apcoins are in a kind
proached $300,000
of purgatory. It’s like An ersatz bitcoin in value at times, he
forgetting a bank
is hoping to recover
account password, but there’s a long-forgotten password.
no bank to call to reset it.
He’s considered hypnosis, but
These bitcoin owners have for now opted to build a superwatched in anguish as its price computer that tries to use
surged over 20-fold at times Please see BITCOIN page A14
What the new tax code
means for individuals...... A4
Businesses find some
welcome surprises............ A5
Benefits for homeowners
wane......................................... A6
Bill may aid property-rental
firms.......................................... B8
Plan could hurt stockoptions pay.......................... B13
REFLECTION: German Chancellor Angela Merkel Tuesday visited a memorial for victims of last year’s deadly
truck attack at a Berlin Christmas market. Security has been stepped up at festivals across the country. A10
Distraught investors use hypnosis and
supercomputers to recover cryptocurrency
BY ALISON SIDER
AND STEPHANIE YANG
Tax Package
A Year After Attack, Remembrance and Tight Security
ISTOCK
A cryptocurrency exchange
in South Korea collapsed after being hit by a second cyberattack in eight months. B15
2000 ’10
GOP plan
n-
A Chinese industry group
has told fund raters to stop
publicizing the sizes of moneymarket mutual funds. B14
’90
Estimated revenue declines
as a percentage of GDP
Sources: Treasury Department; Joint Committee on Taxation (revenue declines); Commerce Department (GDP); Tax Policy Center (historical rates)
U.S. housing starts in November hit their highest level
in over a year, driven by gains
in the South and West. A2
’80
WASHINGTON—Congress
stands on the verge of passing
a $1.5 trillion tax cut and the
largest structural overhaul of
the tax system since 1986.
The Senate passed the taxoverhaul bill, 51-48, around
12:45 a.m. Wednesday after it
sailed through the House on a
227-203 vote on Tuesday.
A last-minute glitch because
of Senate rules forced Republican
leaders to schedule another vote
in the House later on Wednesday
morning. The result isn’t likely to
be any different, and the measure will head to President Donald Trump for his signature,
though no date has been set.
The Senate vote was purely
along party lines, with Sen.
John McCain (R., Ariz.) absent.
In the House, every Democrat
who was present voted no, as
did 12 Republicans, almost all
from high-tax states.
The Republican plan offers
deep tax cuts for businesses,
lower rates for many individuals and a narrower estate tax.
Corporate shareholders, business owners and most households will win, at least in the
first few years. But there will
be losers, too, including some
households living in regions
where state and local taxes are
high. Most of the tax cuts will
take effect in January, and
many workers will see bigger
paychecks from reduced tax
withholding by February.
“We ran on it in 2016. We
spent 2017 working on this legislation, and here it is. We’re
getting it done,” said House
Speaker Paul Ryan (R., Wis.).
“This was a promise made and
this is a promise kept.”
The vote delivers the signature legislative victory Mr.
Trump sought in his first year
in his office, creates a career-dePlease see VOTE page A4
ly
.
T
Measure clears Senate
and initial House vote;
president poised to sign
final version into law
Top marginal
corporate tax rate
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
he FDA approved the
first therapy in the U.S.
to target a disease caused
by a single faulty gene,
clearing for sale a Spark
treatment for vision loss. A1
Top marginal
individual tax rate
JOHN MACDOUGALL/AGENCE FRANCE-PRESSE/GETTY IMAGES
100%
A Place in History
Business & Finance
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
OIL $57.46 À $0.30
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Congress on Brink of Tax Overhaul
What’s
News
CONTENTS
Banking & Finance. B6-7
Business News...... B3
Crossword.............. A18
Heard on Street. B15
Life & Arts....... A15-17
Markets............. B15-16
10-YR. TREAS. g 20/32 , yield 2.464%
WSJ.com
DEALS BOOM
IN SHIFT FOR
HEALTH CARE
BUSINESS & FINANCE, B1
THE ACTOR’S
GUIDE TO
RETIREMENT
LIFE & ARTS, A17
Xinjiang region is a lab for government surveillance
BY JOSH CHIN
AND CLÉMENT BÜRGE
URUMQI, China—This city
on China’s Central Asia frontier may be one of the most
closely surveilled places on
earth.
Security checkpoints with
identification scanners guard
the train station and roads in
and out of town. Facial scanners track comings and goings
at hotels, shopping malls and
banks. Police use hand-held
devices to search smartphones for encrypted chat
apps, politically charged videos and other suspect content. To fill up with gas, drivers must first swipe their ID
cards and stare into a camera.
China’s efforts to snuff out
a violent separatist movement
by some members of the pre-
dominantly Muslim Uighur
ethnic group have turned the
autonomous region of Xinjiang, of which Urumqi is the
capital, into a laboratory for
high-tech social controls that
civil-liberties activists say the
government wants to roll out
across the country.
It is nearly impossible to
move about the region without feeling the unrelenting
gaze of the government. Citizens and visitors alike must
run a daily gantlet of police
checkpoints, surveillance cameras and machines scanning
their ID cards, faces, eyeballs
and sometimes entire bodies.
When fruit vendor Parhat
Imin swiped his card at a telecommunications office this
summer to pay an overdue
phone bill, his photo popped
Please see CHINA page A14
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Wednesday, December 20, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
GOP to Delay Spending Bill Vote More Harassment
WASHINGTON—House Republicans were expected to delay a vote on a stopgap spending bill, according to GOP
aides, as a fight intensified
Tuesday night over how to
prevent a shutdown of the
government before its funding
expires at week’s end.
Both Republicans and Democrats were divided over their
strategy and facing intense
pressure from their parties’
most loyal voters heading into
a 72-hour period ahead of the
12:01 a.m. Saturday deadline.
The House had been expected to make the first move
Wednesday and vote on a
spending bill that funds the
military through next September but keeps the rest of the
government running only
through Jan. 19.
But GOP aides said Tuesday
evening that they no longer expected Republican leaders to
bring up that bill Wednesday,
as it became evident there
weren’t enough votes to pass it.
It wasn’t yet clear what
spending bill the House would
consider Thursday, as Congress edged closer to a government shutdown.
JOSHUA ROBERTS/REUTERS
BY KRISTINA PETERSON
AND LAURA MECKLER
Aides don’t expect a spending bill to be brought up Wednesday.
As the deadline drew closer,
it appeared likely that many of
the thorniest issues, including
the fate of young, undocumented immigrants, would be
pushed into January.
Conservatives said Tuesday
they were still deciding
whether to support the stopgap spending bill after becoming alarmed when GOP leaders
attached a package of $81 billion in disaster relief to it
without trimming the budget
elsewhere.
Many House Republicans
were also uneasy over what final shape the spending bill
would take, since their measure had been expected to fail
in the Senate. Senate Republicans have indicated they intend
to send back to the House a
very different bill that includes
health-care provisions that
conservatives view as a bailout
for insurance companies.
Some House Republicans
said the possibility of the
health-care measures being
tacked onto the spending bill,
in addition to the cost of the
disaster aid, was a letdown after their jubilation over passing a sweeping tax overhaul
Tuesday, which will need a repeat vote on Wednesday due
to Senate procedural rules.
“It’s kind of like leaving a
hospital, just finding out
you’re cancer-free, and getting
run over by a Mack truck,”
said Rep. Mark Walker (R.,
N.C.), chairman of the Republican Study Committee, a group
of about 150 conservative
House Republicans.
The contours of the Senate
measures were far from clear
Tuesday. Spending bills need
60 votes to clear procedural
hurdles in the Senate, where
Republicans hold only 52
seats, so it will need Democratic support to pass.
Congressional leaders have
reached no agreement on how
to handle Dreamers, young immigrants living illegally in the
U.S. who were brought here at
a young age. Democrats have
been under intense pressure to
use the must-pass spending
bill to force action to protect
them before the year is out,
which looked increasingly unlikely Tuesday.
President Donald Trump in
September ended an Obamaera program shielding them
from deportation but gave
Congress until March to pass
legislation handling their fate.
A bipartisan group of senators met with White House
Chief of Staff John Kelly Tuesday about the parameters of an
immigration deal, aides said.
Claims Settled
BY NATALIE ANDREWS
WASHINGTON—The House
of
Representatives
disclosed Tuesday that it paid
more than $300,000 to settle discrimination and harassment claims against members’
offices during a five-year period, including $115,000 in
three claims related to sexual
harassment.
The data, comprising fiscal
years 2008 through 2012, were
released as Congress grapples
with claims of sexual misconduct among its members, and it
has moved to disclose past settlements and overhaul how it
deals with harassment claims.
Earlier this month, the
House disclosed settlement details from the most recent five
years, including one sexual-harassment case.
Numbers released Tuesday by the House Administration Committee show claims involving sex, age and race
discrimination that were paid
during the five-year period by
the Office of Compliance.
In total, $342,000 in public
money was paid to settle 15
claims against lawmakers’ offices from fiscal 2008-2012. An
additional $12,240 was paid to
settle claims by “non-memberled offices.” Names of lawmakers or staffers weren’t released.
In the sexual-harassment
cases included in the lawmakers’ office total, the Office of
Compliance paid $85,000 in a
settlement pertaining to “sexual harassment and harassment
because of retaliation.” It also
paid $10,000 to settle a case
classified as “sex discrimination
(including sexual harassment)
[and] retaliation” and $20,000
to settle a “sexual harassment
because of retaliation [and] sex
discrimination” claim.
The data released Tuesday was requested as part of
the Administration Committee’s
review of sexual harassment
policies. Six lawmakers have
announced in the past few
weeks that they would leave
Congress over allegation of sexual harassment or misconduct.
Committee chair Gregg Harper
(R., Miss.) has been tasked with
reviewing current rules and delivering a proposal to House
Speaker Paul Ryan (R., Wis.).
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CORRECTIONS AMPLIFICATIONS
Middle-income households
will get $61 billion in tax cuts
in 2019 under the Republican
tax legislation poised to become law this week, or 23% of
the tax cuts that go directly to
individuals, according to an
analysis released late Monday
by Congress’s Joint Committee
on Taxation. In some editions
Tuesday, a U.S. News article
about the analysis incorrectly
said middle-income households will receive $144 billion
in total tax cuts over a decade,
or 10% of the total net tax cut.
Also, households earning
$500,000 or more a year,
which account for 1% of filers,
will get $61 billion in cuts in
2019. The article in some editions incorrectly said that they
make up 6% of total filers and
will receive $171 billion in total tax cuts over a decade, or
about 12% of the overall tax
cut. In other editions, the article didn’t make clear that the
cuts were for 2019. The article
in some editions also incorrectly estimated that U.S.
households will get $768 billion in direct tax cuts from the
plan over a decade.
Dividend increases to 7
cents from a split-adjusted 6.4
cents were announced Monday
for shares of Heico Corp. Class
A and Heico Corp. The Dividend Changes table in Tuesday’s Business & Finance section incorrectly placed them
under the “reduced” category
with an old dividend of 8
cents.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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U.S. WATCH
HOUSING
Single-Family Homes
Drive Rise in Starts
U.S. housing starts rose last
month to the highest level in
more than a year, driven by
gains in single-family home
building in the South and West.
Housing starts rose 3.3% in
November from the prior month
to a seasonally adjusted annual
rate of 1.297 million, the Commerce Department said Tuesday.
Residential building permits,
which can signal how much construction is in the pipeline, fell
1.4% to an annual pace of 1.298
million last month.
Economists surveyed by The
Wall Street Journal had expected a 3.1% decrease for
starts and a 2.3% decline for
permits.
—Sarah Chaney
and Sharon Nunn
WHITE HOUSE
Black Republicans’
Help Sought for Jobs
White House chief of staff
John Kelly has invited black Republicans to submit resumes for
administration jobs, after the departure of Omarosa Manigault
Newman left the West Wing
without prominent AfricanAmerican officials.
Ms. Manigault Newman, a
former star of “The Apprentice”
TV show, had an abrupt exit
from the White House last
week, according to a White
House official, who said that Ms.
Manigault Newman was escorted off the campus. Ms. Man-
igault Newman said she resigned after a meeting with Mr.
Kelly, and wasn’t fired or escorted out. She served in the
White House as the director of
communications for the Office
of the Public Liaison.
—Louise Radnofsky
CALIFORNIA
Firefighters Make
Gains Against Blaze
A respite from powerful
winds allowed firefighters to
reach 50% containment of
Southern California’s enormous
wildfire, but officials warned
that potentially dangerous gusts
would return.
Crews were performing a
controlled burn to remove
swaths of dry brush along the
fire’s northern edge. Hot, gusty
winds that caused a huge flareup and forced more evacuations
last weekend are expected to return Wednesday.
—Associated Press
BOSTON
Man Sentenced
In ISIS-Inspired Plot
A man convicted of leading
an Islamic State-inspired plot to
behead a conservative blogger
who upset Muslims when she
organized a Prophet Muhammad
cartoon contest was sentenced
to 28 years in prison.
David Wright, 28 years old,
sobbed as he apologized to blogger Pamela Geller, law enforcement and his family, and denounced the terror group
—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.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A3
* * * * * *
©T&CO. 2017
U.S. NEWS
ELAINE THOMPSON/ASSOCIATED PRESS(PHOTOS)
A TIFFANY HOLIDAY
Train cars were jumbled together with vehicles below a bridge at the scene of an Amtrak derailment in Washington state on Tuesday.
Second Person Was in Cab
Rail Enthusiasts
Among the Victims
Lloyd Flem, executive director of All Aboard Washington,
which advocates for rail and
lobbied for the revamped Amtrak line, said Tuesday two of
the organization’s members
died in the derailment.
“Shall we say we are rather
shaken, and busy. It’s been a
very difficult 26 hours,” Mr.
Flem said. “Two of the three
fatalities were good friends
and officers within our rail-passenger association.”
James Hamre, one of the
victims, was a retired civil engineer with Washington’s Department of Transportation
who “dedicated an awful lot of
time to the Catholic Church
and to rail advocacy,” Mr. Flem
said.
Zack Willhoite was an IT
customer-service support specialist with Pierce Transit, the
agency that serves Pierce
County, where the crash took
place, according to a statement
on that agency’s website.
“He has always been deeply
appreciated and admired by his
colleagues, and played an important role at our agency,”
Pierce Transit said in its statement. “He will be sincerely
missed. Our thoughts are with
Zack’s family, as well as the
families of the other victims,
during this very difficult time.”
Kevin Cartwright, of Los
Angeles, said in a statement
that Mr. Willhoite, a friend, was
“a fastidious public transportation archivist, mass transit history enthusiast, and a public
transportation professional.”
He had a vast knowledge of
transportation history enhanced by research, photography and historic photo archiving, Mr. Cartwright said. He
shared that information and
knowledge with many other
transit advocates in the West.
“The archive he generated
through a lifetime of field photography and data collection is
possibly the most extensive archive in the Pacific Northwest,”
Mr. Cartwright said.
The Pierce County Medical
Examiner declined to confirm
the identities of the men. The
third fatality hasn’t been publicly identified.
—Alejandro Lazo
800 843 3269
|
TIFFANY.COM
ly
.
Amtrak declined to comment on the presence of a second person in the cab, citing
the continuing investigation.
The train was traveling 80
miles an hour before it went
off the tracks as it turned into
a tight curve—well over the 30
mph limit for that part of the
route, federal investigators
said.
Two of the three people
who died in Monday’s Amtrak
derailment were train enthusiasts who were members of an
organization that pushed for
the new rail route.
The derailment happened
Monday morning as Train 501
hit a tight curve along the
Point Defiance Bypass, a newly
completed route that was
meant to enable Amtrak trains
to avoid a winding rail it shared
with freight trains.
Federal investigators said the
train was speeding at 80 miles
per hour in a 30 mph zone before it derailed.
About 80 passengers, five
employees and one technician
were on board, according to Amtrak. Dozens were injured.
The train was making its inaugural run on the bypass as it
traveled from Seattle to Portland,
Ore. The launch had drawn many
train enthusiasts to ride and
gather along the tracks to watch.
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DUPONT, Wash.—The engineer of an Amtrak train that
derailed in a curve south of
Seattle Monday while traveling
at more than twice the speed
limit, resulting in three deaths,
wasn’t alone in the train’s cab,
according to federal officials
and an audio recording of
emergency personnel responding to radio calls for help.
Engineers typically are
alone in the cab of passenger
trains, though it wouldn’t be
unusual for a second person,
such as a supervisor, road
foreman or conductor, to be
riding along on the first trip
on a new line, rail experts
said.
Federal investigators said
the second person in the cab
of the train when it crashed
was a conductor who was familiarizing himself with the
route of the newly opened rail
bypass.
Investigators likely will examine whether the presence of
another person could have distracted the engineer, according
to rail experts. Federal investigators, who arrived late Monday night, are looking at a
range of factors to determine
what led to the derailment
that killed three people and injured more than 70.
The National Transportation Safety Board will consider
the possibility that distraction
played a role in the crash, including by examining cellphone records of all members
of the train’s crew—a standard
procedure following accidents.
NTSB board member Bella
Dinh-Zarr said the agency has
recovered a second event record from the lead locomotive
on the train and will compare
its data to the recorder removed from the trailing locomotive, she said.
The agency has also recovered two damaged video recorders—one facing outward
onto the track, the other facing inward toward the engineer—and will try to recover
footage from the moments be-
ated” the train’s emergency
brakes. Those brakes came on
automatically during the derailment, she said.
The NTSB has yet to interview any members of the crew,
including the engineer, Ms.
Dinh-Zarr said, noting that all
had been hospitalized. Investigators “want to be respectful
of their injuries,” she said.
co Fo
m rp
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ci on
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on
BY TED MANN, PAUL BERGER
AND ZUSHA ELINSON
fore the derailment. Inwardfacing cameras have been recommended by rail-safety
advocates and regulators in
the aftermath of previous
crashes, and Amtrak has said
it is rolling them out across
the entire railroad.
Ms. Dinh-Zarr also said investigators have determined
that the engineer never “initi-
n-
Safety investigators in
Washington state crash
to examine if engineer
was distracted
Two damaged train cars sit on trailers after being taken from the crash scene on Tuesday.
BY FRANCIS X. ROCCA
Cardinal Bernard Law, a
leading figure of the Catholic
Church in the U.S. until he fell
from grace for mishandling instances of clerical sex abuse,
has died, the
CARDINAL Vatican
conBERNARD
firmed
early
LAW
Wednesday.
1931-2017
He was 86
years old and
suffering from a
long illness, the Vatican said.
The cardinal had been living in
Rome since 2004.
As archbishop of Boston,
where he oversaw one of the
oldest and largest Catholic
archdioceses in the U.S. from
1984 to 2002, Cardinal Law
was among the country’s most
prominent prelates. His career
ended under a cloud when he
resigned in fallout from the
sex-abuse scandal that shook
the American church beginning in 2002.
Newspaper reports that
year revealed dozens of cases
in which archdiocesan officials
had failed to report priests accused of child abuse to the police and had instead reassigned
them to other parishes where
they continued to sexually
abuse minors. The story was
recounted in the 2015 movie
“Spotlight,” based on a series
of articles that appeared in the
Boston Globe.
The scandal prompted U.S.
bishops to adopt stricter policies on the protection of children and the disciplining of
abuser priests, as well as more
extensive
psychological
screening of candidates for the
priesthood, but left a lasting
taint on the church’s image.
Few other Catholic bishops—
and none of Cardinal Law’s
stature—have stepped down
since 2002 for covering up instances of sex abuse by their
clergy.
Bernard Francis Law was
born Nov. 4, 1931, the only
child of American parents, in
Torreón, Mexico, where his father ran a small Mexican air-
ALASTAIR GRANT/ASSOCIATED PRESS
Figure in Church Scandal Dies at 86
Cardinal Bernard Law
line. The family moved frequently in his youth, living at
various times in Colombia,
Panama, the Virgin Islands and
New York City.
By the time he graduated
from Harvard College in 1953,
he had concluded that his vocation was to the Catholic
priesthood.
He was ordained a priest in
1961 in the Diocese of NatchezJackson, Miss., where Catholics represented less than 4%
of the population. In interviews with the Boston Globe
and the Harvard Crimson in
1984, he said he had been
drawn to working in the American South, where he believed
there was a greater need for
priests. He embraced the rising civil-rights movement
there, cooperating with Protestant clergy and the black community, and using the diocesan
newspaper as an outlet for the
cause—a stance that made him
the target of death threats.
In 1973, Pope Paul VI made
Father Law bishop of Springfield-Cape Girardeau, Mo., another area with few Catholics.
Then in 1984, following the
sudden death of Cardinal Humberto Medeiros, Pope John
Paul II picked Bishop Law to
lead the archdiocese of Boston,
the only major U.S. city with a
majority Catholic population.
He was elevated by the pope to
the rank of cardinal in 1985.
Starting at
$1,950
Free Engraving
www.baume-et-mercier.com
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Wednesday, December 20, 2017
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THE WALL STREET JOURNAL.
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TAX OVERHAUL
TAX REPORT | By Laura Saunders
Cut Your Tax Bill: What to Do Before Jan. 1
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
quite the biggest tax cut ever,
as the GOP president often calls
it. It does cut the corporate tax
rate—in one single bill—more
than ever before. But other tax
cuts, most notably former President Ronald Reagan’s 1981 program, were larger as a share of
gross domestic product, according to Treasury Department analyses.
Still, it is more than just a
collection of tax cuts. It includes a fundamental rethinking of business taxation and international tax rules, and
Republicans are challenging
some cherished and once-sacrosanct tax breaks, shrinking
the deduction for state and local taxes and making the mortgage-interest deduction less
valuable.
Republicans reaped the benefits of three elections—the takeover of the House in 2010, the
Senate flip in 2014 and Mr.
Trump’s surprise victory last
year. That realignment left the
GOP in control of Congress and
the White House for the first time
since 2007. The coalition wasn’t
able to repeal the ACA, which Republicans campaigned against,
but found its footing in the more
comfortable terrain of tax policy.
Many households are still
sizing it up. Joyce Prior, a 59year-old accountant who contracts out to companies and
lives in Salem, Wis., said her tax
no
Continued from Page One
fining moment for Mr. Ryan
and yields talking points for
hundreds of Republican lawmakers who came to Washington to lower taxes. By repealing
the individual mandate to have
health insurance, it strikes a
blow at the Affordable Care
Act, which Senate Majority
Leader Mitch McConnell (R.,
Ky.) described as “the core of
Obamacare” in an interview
Tuesday night.
“It’s a capstone to a very
successful first year,” he said.
“We think we’ve had a huge impact on the country.”
For Democrats, who found
unity in opposition, the tax bill
and its weak rating in polls will
likely turn into campaign ads
about Republicans helping corporations and warnings that
cuts to programs such as Medicare are coming.
“The tax bill Republicans
jammed through Congress today stacks the cards against
working Americans while rewarding big Republican donors
and the Trump family,” said
Rep. Bill Pascrell (D., N.J.). “In
this bill, Congress put its
thumb on the scale for the
wealthy and well-connected.”
The Republican tax bill isn’t
haps 20 million or more of
them to switch to the standard deduction. Many will be
married couples, as the new
$10,000 cap on state and local tax deductions is per return, not per person.
The bottom line is that affected taxpayers will no longer get value from deducting
charitable donations.
There are ways around
the coming limit. One is to
accelerate donations that
won’t make sense next year.
Another is to “bunch” future
donations so that every few
years, it is possible to surmount the higher threshold
and use a deduction.
Affected givers should
also consider so-called donor-advised funds. These
popular accounts enable donors to bunch smaller gifts
into one large amount and
take a deduction. The donor
can then designate charitable recipients later, and
meanwhile the assets can be
invested and grow tax-free.
All year-end donors
should think twice before
writing a check to a charity
or donor-advised fund, especially after the markets’
surge this year. A better
move is often to contribute
appreciated investments
such as shares of stock. This
allows the donor to take an
immediate deduction for the
full market value up to certain limits, while not having
to pay capital-gains tax on
the appreciation. This tax
break isn’t being affected by
the overhaul.
haul.
Accelerate state tax payments. The new tax overhaul
caps deductions of state and
local income or sales and
property taxes (SALT) at
$10,000 per return.
The bill bars deductions
for payments earmarked for
2018 state income taxes, but
this leaves room for making
other state tax payments before year-end.
David Lifson, a certified
public accountant with
Crowe Horwath, said it is
permissible to make “generous estimates” of your 2017
state income-tax liability.
Tax specialists are also
urging many clients to pay
the balance due of 2017 state
income taxes before Jan. 1
and to consider paying 2018
property taxes that will exceed next year’s limit.
Beware: Taxpayers who
owe alternative minimum tax
for 2017 will lose some or all
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Tax Scenarios
How the tax bill would play out for several representative families in 2018, based on the University of
Pennsylvania's Penn Wharton Budget Model. Many of the tax cuts are set to expire after 2025, which
would reduce or eliminate the benefit for many taxpayers.
High tax states
Married, two children (California)
Married, two children (D.C.)
Single, no children (New York)
$68,000 in wages
$300,000 in wages
$300,000 in wages
Federal tax liability
CURRENT $2,810
PROPOSED $900
DIFFERENCE
-$1,910
CURRENT $58,550
PROPOSED $49,380
DIFFERENCE
-$9,170
CURRENT $76,340
PROPOSED $76,490
DIFFERENCE
$150
Lower tax states
Married, two children (Florida)
Married, two children (Texas)
Single, no children (Illinois)
$50,000 in wages
$300,000 in wages
$300,000 in wages
Federal tax liability
CURRENT –$230
PROPOSED –$1,600
DIFFERENCE
-$1,370
CURRENT $60,300
PROPOSED $50,580
DIFFERENCE
-$9,720
CURRENT $77,430
DIFFERENCE
PROPOSED $76,490 -$940
THE WALL STREET JOURNAL.
Source: Penn Wharton Budget Model
bill could go down, but not
enough to change her plans. She
and her husband make between
$80,000 and $90,000 a year.
“We could do a little bit
more toward the house that we
want to do,” she said. “But I
mean, $500 isn’t really enough
of an incentive to me.”
The plan was seven years in
the making, the dream of GOP
leaders since they took control
of the House and a reminder
that little unites the Republican
Party more than tax cuts. The
final bill also was the product
of seven weeks of lightning-fast
legislating jammed between
Halloween and Christmas.
Democrats sought more
hearings to study the bill. They
demanded Mr. Trump’s tax returns, so they could see how
the president would benefit.
They asked Senate Republicans
to delay the last vote until Sen.elect Doug Jones (D., Ala.)
could be seated. Republicans
brushed those arguments aside.
“They did the calculation
and decided that it was going
to be easier to get it done without dragging their feet,” said
tax historian Joe Thorndike, di-
of the value of SALT deductions. For them, accelerating
payments could either provide no benefit or else reduce the benefit they have.
Because the AMT is complex,
it is difficult to know the
best moves without using a
computer program.
Also check whether your
state will accept payments of
2018 property taxes this
year. In general, says Mr. Lifson, taxpayers can only pay
2018 taxes already billed.
Pay employee business
expenses. Under current law,
unreimbursed business expenses can only be deducted
if they exceed 2% of a
worker’s income. This writeoff is being eliminated, so
employees who take it should
pay the expenses before
year-end.
Harvest losses. An annual
ritual for many investors
with taxable accounts is
meeting with brokers to
“harvest” capital losses from
losing positions. These losses
can then offset taxable gains
from winners.
A provision in the Senate
bill would have ended investors’ ability to choose specific shares when selling part
of a position, making loss
harvesting far more difficult.
This change didn’t make it
into the final bill, to the relief of many.
ly
.
VOTE
House Ways and Means Committee Chairman Kevin Brady (R., Texas) on Capitol Hill on Tuesday.
H
ere are other year-end
tax moves to consider,
based on the over-
co Fo
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T
he tax overhaul nearly
doubles the “standard”
deduction, which is
the amount filers get if they
don’t itemize write-offs separately on Schedule A. Starting next year, the standard
deduction will be $12,000 for
single filers and $24,000 for
married couples filing
jointly.
Currently about 30% of
filers, or 45 million, itemize
their deductions. The pending change will cause per-
Donors who have IRAs
and are 70½ or older have
another good giving option.
They can contribute up to
$100,000 of IRA assets directly to one or more charities and have it count toward their annual required
distributions from the IRA.
n-
For millions of Americans, the
most important tax-planning tip between now and the end of
the year is to check your
charitable contributions.
They are on Schedule A,
Line 19 of your tax return.
Do these donations, plus
your mortgage interest, allowable medical expenses,
and $10,000 of state and local taxes, normally add up to
more than $12,000 if you are
single and $24,000 if you are
married filing jointly?
Unless the total tops these
amounts—or you have other
uncommon deductions—the
tax overhaul is likely to wipe
out your donation write-offs
next year and beyond.
Here’s why:
rector of the Tax History Project at Tax Analysts, a publisher.
Ultimately, its success will
depend on how the economy
responds. The legislation will
cut the U.S. corporate tax rate
to 21% from 35%, a move
cheered by companies as crucial for encouraging investment
in the U.S. It will also allow
faster write-offs for business
investments, sharply limit companies’ ability to deduct interest expenses and usher in a
new set of untested rules for
taxing international profits.
U.S. corporations will pay a
one-time tax of up to 15.5% on
profits they have stockpiled
abroad. Going forward, many
will face no U.S. taxes on their
foreign income, a change that
puts the U.S. in line with other
major developed countries.
“The international reforms
are huge and don’t get talked
about as much,” said Sen. John
Thune (R., S.D.). “That kind of
stuff is just really long-lasting.”
Republicans are also cutting
taxes for pass-through businesses, the partnerships, S corporations and sole proprietorships that pay taxes on their
owners’ individual tax returns.
Republicans argue the tax
plan will spur much faster economic growth and pay for itself, though the official estimates say that argument is
overstated. The House and Senate bills would produce modest
growth and add $1 trillion to
projected budget deficits over
the next decade, after accounting for that expansion, according to the Joint Committee on
Taxation, the nonpartisan congressional tax scorekeeper.
“Where are the vaunted Republican deficit hawks?” asked
House Minority Leader Nancy
Pelosi (D., Calif.) on the House
floor. “Are they endangered?
Are they extinct?”
—Shayndi Raice
and Siobhan Hughes
contributed to this article.
Poll Shows Deepening Unpopularity
BY JANET HOOK
The Republican tax-cut bill
has grown more unpopular in
the two months it has taken to
usher it through Congress, and
few people believe it will provide relief for middle-class
families, a new Wall Street
Journal/NBC News poll has
found.
The poll also found that the
GOP has lost its advantage on
issues it has recently dominated. Americans now express
more confidence in Democrats
than Republicans to handle
taxes, the economy and President Donald Trump’s signature
goal of changing how Washington works.
Republicans in Congress say
the tax bill will become more
popular once the tax cuts begin to take effect in February.
They are hoping that the legislation will shore up the party’s
political fortunes by giving the
GOP its first major legislative
accomplishment.
In the new survey, many
Americans gave Mr. Trump
credit for the nation’s strong
economy, with 40% saying he
has made the economy better
and 21% saying he has made it
worse. But those feelings
brought little benefit to the
president’s party.
Nearly half of adults in the
new survey held negative
views of the GOP, higher than
the 38% of a year ago and a
larger share than the 27% who
viewed the party favorably.
Paying Up
Who do you think would pay more or less in taxes
under the Republicans' plan?
PAY MORE IN TAXES
Middle class Americans
You and your family
PAY LESS IN TAXES
16%
37%
17
32
Corporations
8
Wealthy Americans
6
66
56
Note: ‘Pay about the same’ and ‘Don’t know enough’ answers not charted
Source: WSJ/NBC News telephone poll of 900 adults
conducted Dec. 13–15; margin of error +/-3.3 pct. pts.
Views of the Democratic Party
have turned slightly more positive over the past year.
It is unusual to see a political party that controls the levers of power so challenged at
a time of economic improvement, said Bill McInturff, a Republican pollster who conducted the survey with
Democrat Fred Yang. He
doubted the situation would
change with enactment of the
tax bill.
“We are watching a case
where a president is getting
credit for the economy improving, sitting on top of an
economic boom, and not deriving political value,” said
Mr. McInturff. “I don’t believe
passing the bill is going to
have much of an immediate
effect.”
House Speaker Paul Ryan
(R., Wis.,) has said that opinions of the tax bill will improve once tax cuts appear in
worker paychecks. “When peo-
THE WALL STREET JOURNAL.
ple see their withholding improving, when they see the
jobs occurring, when they see
bigger paychecks, a fairer tax
system, a simpler tax code,
that’s what’s going to produce
the results,” he said Tuesday.
The House and Senate were
expected to clear the bill for
Mr. Trump’s signature by
Wednesday.
In an interview with the
Journal, Mr. Ryan acknowledged his party faced a political challenge heading into next
year’s midterm elections. “I
see a historical trend cutting
against us.... We’ve got the
wind at our face,” he said. Mr.
Ryan said he thought that
changes to welfare programs
and the criminal justice system would be popular to advance in the midterm year.
The new Journal/NBC poll,
conducted Dec. 13-15, finds
that the GOP has a lot of work
to do in promoting the tax bill,
because few people believe it
will cut taxes for the middle
class or for their own family.
More than two-thirds of respondents said the law was
designed mostly to help corporations and the wealthy.
Asked to assess how the
law would affect them, 17%
said their family would pay
less in taxes under the measure, while 32% say they
would pay more. Democrats
were the more skeptical and
Republicans less so, while the
overall numbers mirror the
opinion of independents.
Overall, 41% of Americans
in the survey said the tax plan
was a bad idea, up from 35%
in October.
Fewer than one-quarter of
people said the bill was a good
idea.
After two months of congressional debate on the measure, Americans now have less
confidence in the GOP’s handling of one of their marquee
issues: People said by a 33%to-29% margin that they believe that Democrats would do
a better job than Republicans
with taxes.
The general mood of the
electorate is grim. Although
people see the economy as improving, only 30% said the
country was better off compared with when the Trump
presidency began, while 45%
said it was worse off. The
question produced a large gender gap: 51% of women but
39% of men said the country
was now worse off.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A5
TAX OVERHAUL
Businesses Find Some Welcome Surprises
BY THEO FRANCIS
The final tax bill offers
much of what large companies
hoped to gain from the Republican overhaul: the billboard
corporate rate was knocked
down, cuts were accelerated
and key credits were preserved.
“Overall, the business community is very pleased with
the bill,” said Neil Bradley,
chief policy officer at the U.S.
Chamber of Commerce. “If
someone would have said 11
months ago, by the end of the
year we’d able to produce a
bill and get it to the presi-
dent’s desk that does these
things, skepticism would have
been sky high.”
Late modifications to reconcile conflicting House and
Senate provisions—and lobbying by companies and industries—resolved some key uncertainties in the legislation,
and offered a few surprises as
well.
Among the provisions that
made business leaders happiest was one that went missing
in the final bill: the corporate
alternative minimum tax. Its
survival in the Senate bill provoked widespread consternation, as business groups wor-
Tax Rates by Industry
Average effective tax rates in 2016 for firms with at least
$1 billion in sales.
Retail
30.6%
Engineering/Construction 28.7
Automotive
27.8
Manufacturing/Metals
26.4
Travel/Transportation
26.1
Chemicals
25.8
Technology
25.3
Pharmaceutical
24.6
Aerospace/Defense
23.4
Source: PwC
THE WALL STREET JOURNAL.
ried that it would undercut a
variety of tax incentives, including one fostering research
and development.
Also welcome: the 21% corporate tax rate, despite being
a percentage-point higher than
either the House or Senate bill
proposed. “That’s a home run,
there’s no other way to look at
it,” Mr. Bradley said.
The rate takes effect on
Jan. 1, a year sooner than proposed in the Senate bill. That
promises firms an extra year
of lower tax and avoids a delay that worried many tax experts.
“The level of gaming that
would have occurred if you
would have had a 35% rate in
2018 and a 21% rate in 2019, it
would have been truly amazing,” said Steven Rosenthal,
senior fellow at the nonpartisan Tax Policy Center think
tank.
The final tax plan splits the
difference between House and
Senate proposals to limit the
amount of business interest
companies can deduct from
their taxes each year. The Senate used a measure that
roughly parallels earnings before interest and taxes, or
EBIT, while the House also
used a measure including de-
Foreign Profits
Face One Last Tax
The final tax bill ratcheted
up a one-time tax on accumulated foreign profits, or what is
often called a repatriation tax.
It is now 15.5% on liquid assets,
such as cash and cash-equivalents, and 8% on illiquid assets,
including factories and equipment, paid over eight years.
That is up from 14% and 7%
in the House bill, and well
above the 8.75% and 3.5% originally proposed by Republican
leaders.
Under existing tax law,
companies have been taxed at
the full 35% statutory corporate
rate for foreign profits brought
to the U.S., beyond what was
paid to foreign tax authorities.
Foreign profits indefinitely
reinvested outside the U.S.
went untaxed—leading S&P
500 companies to accumulate
some $2.5 trillion in unremitted
foreign earnings.
The one-time tax is meant
to serve as a transition from
the old “world-wide” system to
a new “territorial” one in which
foreign profits will generally not
be taxed at all, with exceptions
intended to discourage abuse
of foreign tax havens. Its novelty and complexity is likely to
foster further lobbying and potentially litigation.
preciation and amortization,
approximating Ebitda, for a
higher income figure and
therefore a more generous cap
on the interest that would be
deductible.
The final bill uses the more
generous House definition of
income—for the first four
years, then switches to the
less generous Senate calculation in 2022.
The difference isn’t trivial.
The House provision was expected to raise $171 billion,
barely half the $307 billion the
Senate calculation would have
yielded.
That compromise could
cause problems for some companies down the road, analysts
say. Lawmakers could ultimately extend the more favorable calculation, but the provision as it stands creates
uncertainty, said Height Securities LLC tax analyst Stefanie
Miller.
“Companies that are highly
levered or companies that are
not particularly financially
stable, when this switches to
EBIT it could be a problem,”
she said.
Lawmakers
ultimately
dropped another closely
watched interest-deduction
limit, which would have applied where a disproportionate
amount of a company’s borrowing came in the U.S. The
provision was designed to help
prevent “earnings stripping,”
or shifting profits to lower-tax
jurisdictions.
Lobbyists and corporate tax
executives are still working
through changes to some of
the bill’s most complex provisions, which attempt to limit
efforts to shift corporate profits to low-tax foreign jurisdictions.
Private-equity firms kept
capital-gains treatment for
“carried interest,” or their
share of profits from portfolio
investments, but only if the investment is held at least three
years. Today, the treatment
applies after a year.
—Siobhan Hughes
contributed to this article.
i
i
ly
.
Far More Industry Winners Than Losers in GOP Bill
i
+/$
$
Retail
+
*
+/-
Health Insurers
n-
40
+ *
Agriculture
Manufacturers
The tax bill likely would
make the U.S. more attractive
as a base for manufacturing.
International
provisions
aimed at repatriating and taxing overseas profits would
generally favor domestic manufacturers that export from
the U.S. or companies with
production in the country, said
Paul Green, a tax partner who
focuses on the industrial sector at Ernst & Young LLP in
Chicago.
U.S. manufacturers are
likely to benefit from the ability to immediately write off
the costs of equipment purchases, tax experts said. That
could mean more sales for
equipment makers and spur
manufacturers to invest in new
factory machines.
Within the food-manufacturing sector, companies with
international brands such as
Oreo cookie maker Mondelez
International Inc. and M&M’s
owner Mars Inc. would save
money when they repatriate
overseas earnings.
—Andrew Tangel
and Annie Gasparro
+
*
$
*
+
+/
+
*
+
*
+
-
+/
-
+
*
104 0
104 0
The final tax bill eliminated
the Domestic Production Activities Deduction, also known as
Section 199, which has allowed
farmers to reduce their income
by deducting some costs of agricultural cooperatives, the
grower-owned organizations
that market farmers’ crops and
supply fertilizer and pesticides.
Agricultural groups have said
the deduction amounts to
about $2 billion annually.
But the bill does include a
new 20% deduction on co-op
payments to farmer members,
and a similar deduction for coops themselves.
Farm groups generally
backed other aspects of the
legislation, which they said expanded some exemptions from
the federal estate tax and improved depreciation provisions
for agricultural machinery.
—Jacob Bunge
1040
$
no
10
+
*$
$
+/ -
$
Oil & Gas
Corporate-tax cuts would be
a boon to oil-and-gas producers in a variety of ways, but it
isn’t expected to be as meaningful for big companies such
as Exxon Mobil Corp., or shale
drillers, as it would be for refiners.
Like other multinational
corporations, oil giants such as
Exxon and Chevron Corp.
would be able to bring profits
made abroad back into the U.S.
at a lower tax rate, according
to Niloufar Molavi, the global
oil and gas leader for PricewaterhouseCoopers.
That is among the changes
that signal a transition to “territorial taxation,” where large
U.S. companies with global operations wouldn’t necessarily
have to pay domestic tax on
activity abroad for which they
already paid tax to another
country, she said.
The bill also has provisions
that continue to provide
breaks to energy partnerships
whose earnings are taxed once
they are paid out to shareholders. Often called master-limited partnerships, or MLPs,
many companies within that
corporate structure operate
pipeline assets around the
country.
—Bradley Olson
+
$
$
*
+/-
+
1040
$
*
Hospitals
The nation’s nonprofit hospitals—which account for
about 60% of the sector—
dodged a bullet as the bill
would preserve their access to
tax-exempt bond markets.
Hospitals went to market
for $37 billion in tax-exempt
bonds in 2016, according to
Thomson Reuters. The risk
hospitals could be shut out
sent borrowers scrambling to
raise funds in recent weeks.
But hospitals said the repeal of the ACA mandate that
most people get health insurance would increase the number of uninsured patients
seeking medical care.
The lower corporate tax
rate would benefit major hospital companies including HCA
Healthcare Inc.
But due to another provi-
sion in the bill, Tenet Healthcare Corp., Quorum Health
Corp. and Community Health
Systems Inc. wouldn’t fare as
well as would rivals with less
leverage, said RBC Capital
Markets Analyst Frank Morgan.
—Melanie Evans
$
+/-
$
+/-
$
+
+
*
$
+
+
*
+/*
1040
+ /-
*
$
1040
+ /$
*
1040
$
$
*
$
+ /$
$
+
The tax bill would preserve
“private activity bonds,” taxexempt financing that local
governments that own airports sell to fund new or rebuilt terminals, parking garages and other infrastructure.
A provision of the House tax
bill would have ended the
bonds, which also help raise
money for ports, hospitals and
universities.
Airports estimate they have
$100 billion in infrastructure
needs over the next five years,
and 60% of those projects
were expected to be financed
through these types of bonds.
The overall tax package
would incentivize further airline investment in equipment
and jobs, according to Airlines
for America, the industry’s
leading trade association. U.S.
passenger airline capital expenditures totaled $17.5 billion
in 2016. The corporate rate reduction more than makes up
for limits on business interest
deductions, changes in deductible expensing and the elimination of net operating loss
carrybacks, the group said.
Delta Air Lines Inc., for one,
said it expects the drop in the
corporate rate to save it $800
million a year and push up its
expected earnings by $1 per
share to $6.35.
—Susan Carey
*
*
$
*
+/+
Airports and Security
$
*
+ /-
Restaurants
$
Telecom
Because most telecommunications carriers’ revenue
comes from domestic operations, the corporate-rate cut
could save them billions annually. Another provision lasting
through 2022 that allows companies to immediately write
down the full value of their
capital investments also would
lead to big savings near-term.
Bonus depreciation, a tax
benefit that allows businesses
to write off the falling value of
machinery and equipment upfront rather than over time,
gave a boost to telecom companies like AT&T and Verizon
Communications Inc. when it
was added to the tax code
MICHAEL BUCHER/THE WALL STREET JOURNAL
The National Association of
Realtors, one of the largest
lobby groups in the U.S., is
among the biggest losers in a
tax-code overhaul that wipes
out decades-old perks designed to encourage homeownership.
By almost doubling the
standard deductions for individual and joint tax filers, the
legislation blunts the advantage of the mortgage interest
deduction, which is often a
key factor in homebuying decisions. The legislation also caps
the deduction for state and local taxes at $10,000, a blow to
homeowners in high-tax
states.
At least 23 million fewer
U.S. homeowners would be incentivized to buy a home under the new rules, according
to home-search website Zillow.
The share of homeowners who
are likely to itemize and therefore take advantage of the
mortgage interest deduction is
expected to decline to about
14% from about 44%, according to Zillow.
At peak impact, U.S. home
prices would be about 4%
lower in the summer of 2019
than if there had been no tax
changes, according to an analysis by Moody’s Analytics. In
pricier markets in states like
New Jersey, New York, Illinois
and Pennsylvania, prices could
be as much as 10% lower, ac-
* $
+
$
$
Health insurers, an overwhelmingly domestic industry,
initially could see sharp increases in earnings from the
tax bill’s sharp cut to the corporate rate—perhaps in the
15% to 20% range, said Ana
Gupte of Leerink Partners LLC.
Many nonprofits in the industry, a category that includes most Blue Cross Blue
Shield insurers, also would see
a drop in their tax bills, but
not as large. The nonprofit
Blue insurers do generally pay
federal taxes, analysts said,
but often at lower rates than
their for-profit competitors.
Over time, the tax-cut windfall could shrink. Shawn Guertin, chief financial officer of
Aetna Inc., told analysts the
immediate benefit would be
large, but cautioned that it
could be chipped away somewhat by rules in the Affordable
Care Act that dictate a minimum share of premium dollars
that must go toward health
costs. He also said that the extra margin would be trimmed
over time as insurers used it
to push down rates in competitive markets.
Another aspect of the tax
legislation could increase the
challenges for some insurers,
by ending enforcement of the
ACA’s individual insurance
mandate. Insurers generally
believe that the upshot would
be to shrink enrollment in ACA
plans, particularly among
healthy people who don’t receive federal subsidies to help
with their premiums. That
could lead to an increase in
premiums, insurance officials
say.
—Anna Wilde Mathews
+/ -
+/ -
104 0
Realtors
*
1040
$
Retailers are set to be one
of the largest beneficiaries of
the new tax legislation, which
lowers the corporate rate to
21% from 35%.
Retailers have mostly U.S.based operations and little
manufacturing or research and
development, so they don’t
usually benefit from deductions on those activities. Retailers paid an average tax rate
of 30.6% in 2016, according to
PwC, the highest of any industry it tracked.
The tax cut could have significant effects on an industry
spending heavily to fight Amazon.com Inc. and adapt to
shifting consumer habits. Traditional retailers have generally paid higher taxes than online retailers like Amazon,
which can often place intellectual property in countries with
lower rates and benefit from
deductions given to companies
that don’t earn a profit.
The biggest beneficiaries
would be U.S.-based ones that
derive the majority of their
profits in the U.S., including
department stores such as
Macy’s Inc. and Kohl’s Corp.,
and some apparel retailers,
Cowen & Co. said in a research
note.
—Sarah Nassauer
—
*
*
$
$
1040
*
*
nearly a decade ago.
This bill extends and expands that stimulus measure
for the next five years, giving
big capital spenders an extra
break from an already slimmer
corporate tax bill.
Network operators are
among the biggest beneficiaries
of bonus depreciation because
of the amount of gear needed to
keep their systems up-to-date.
The depreciation write-off
would hit as wireless companies
ramp up spending on new hardware designed to support fifthgeneration, or 5G, networks.
Wells Fargo estimates the
depreciation benefit would add
about $1.6 billion and $1.2 billion, respectively, to free cash
flow for AT&T and Verizon in
2019.
—Drew FitzGerald
and Ryan Knutson
1040
+
cording to Moody’s.
—Laura Kusisto
40
+
1040
10
+/ -
$
1040
co Fo
m rp
m e
er rs
ci on
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us l,
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on
Sectors from retail to manufacturing stand to benefit from the new legislation, while real-estate sellers would take a hit.
U.S.-based companies that derive the majority of their profits domestically, like Macy’s, would benefit.
The tax overhaul is largely
favorable for restaurant companies and their shareholders,
according to several analysts.
But multinational chains
such as McDonald’s Corp., Restaurant Brands International
Inc. and Yum Brands Inc. that
have a higher mix of U.S. debt
to earnings could take an
earnings hit due to limits on
the tax deductibility of U.S. interest expenses, according to
Credit Suisse analysts.
Based on the reduction of
the corporate tax rate alone,
analysts say fast-casual dining
chains such as Shake Shack
Inc. and Chipotle Mexican Grill
Inc. would benefit the most
because they currently pay the
highest corporate tax rates.
—Julie Jargon
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A6 | Wednesday, December 20, 2017
THE WALL STREET JOURNAL.
* *
TAX OVERHAUL
Homeowner Benefits Wane Pass-Through Rules
Remain Complex
Areas with high prices
and taxes take big hit,
and renters could have
trouble finding homes
BY MICHAEL RAPOPORT
Property Tax Pain
The most expensive counties to live in, when it comes to your
property tax bill.
State
County
Median residential property tax
$13,970
Westchester
N.Y.
New York
N.Y.
12,145
Rockland
N.Y.
10,895
Bergen
N.J.
9,963
Essex
N.J.
9,955
Nassau
N.Y.
9,898
Union
N.J.
9,727
Passaic
N.J.
9,162
Morris
N.J.
8,960
Somerset
N.J.
8,524
Source: CoreLogic
THE WALL STREET JOURNAL.
longer be able to deduct the interest they pay on home-equity
debt.
The overhaul would also
curb how much homeowners
can deduct for paying property
taxes. Current law allows taxpayers to deduct state and local
income or sales taxes, and also
property taxes. Under the new
bill, the amount that taxpayers
can deduct per return for state
income or sales taxes, as well as
for property taxes, is capped at
$10,000.
That could be a jolt to taxpayers who already pay high
property taxes. The median
property tax bill in the U.S. is
about $1,740, according to data
company CoreLogic, and only
three counties—all in the New
York City area—have median
property tax bills above
$10,000. But dozens of other
counties have median property
taxes above $5,000.
In Westchester County, the
median property tax bill is
nearly $14,000, the highest in
the country.
—Laura Saunders
contributed to this article.
A Pass-Through Primer
How different types of businesses would be affected by the final tax
bill’s rules on ‘pass-through’ business income.
20% of pass-through
income can be deducted;
up to 37% top rate
applies to rest, including
any wage income
ly
.
People looking to buy currently face a lower-than-normal supply of new homes in the market.
The tax outlook for people
with “pass-through” business
income is a little simpler now
than it was before. But it is
still complicated.
The final version of the tax
bill expected to pass Congress
combines elements of two
vastly different setups in the
House and Senate versions of
the legislation for people with
pass-through income—those
who run businesses but report
the income on their own individual tax returns.
Under the final version of
the pass-through provisions,
20% of pass-through income
can be deducted. The rest is
subject to taxes at regular
rates, up to a new top rate of
37%. That rate is revised down
from 39.6% under current law.
For people who make more
than $157,500 (or $315,000 for
a married couple), the deduction is limited, or phased out
entirely for people in certain
“specified service businesses,”
including medical, legal and
consulting practices.
More than $157,500
individual income
(or $315,000 married)
co Fo
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The Republican tax-code
overhaul would reduce or eliminate some of the benefits of
homeownership that Americans
have come to expect.
Homeowners in areas with
high home prices and hefty
property taxes could be most
affected, but real-estate agents,
home builders and housing-industry groups say the effects
would be felt by a wide swath
of borrowers. This is because
the tax bill could make existing
homeowners less willing to
move up to bigger homes. That,
in turn, could make it harder
for renters to enter the housing
market—a prospect that is already difficult, given the lowerthan-normal supply of homes
on the market.
Here are a few ways the current bill could affect the housing market.
The mortgage interest deduction is the sacred cow of
American homeownership. Current law allows homeowners to
deduct the interest on mortgages of up to $1 million. The
tax bill would cut that to
$750,000 for future home purchases.
This could make homeowners with mortgages of more
than $750,000 less inclined to
move, since it would cause
them to lose part of their tax
shield. (That is assuming they
are moving to a comparable or
more-expensive house.) Or, in
some cases, they might not be
willing to pay as much for a
new home, a factor that could
weigh over time on higher-end
home prices.
Only about 4% of purchase
mortgages made this year were
for more than $750,000, accord-
KIM RAFF FOR THE WALL STREET JOURNAL
BY CHRISTINA REXRODE
For those facing a limit on
the 20% deduction, the deductible amount is capped at
50% of the wages paid by the
business or 25% of wages paid
plus 2.5% of the value of the
business’s “qualified property,”
whichever is greater. Qualified
property is tangible, depreciable property that pass-through
businesses use to produce income.
That second threshold has
drawn criticism because it
would benefit real-estate investors, including Sen. Bob
Corker (R., Tenn.), who voted
against the initial version of
the bill but said he supported
the final version.
Mr. Corker insisted he had
nothing to do with including
the provision in the final bill.
Rep. Kevin Brady (R.,
Texas), chairman of the House
Ways and Means Committee,
said it was “important” to include a test allowing businesses to qualify for passthrough based on their
property, because it would encourage them to make capital
investments.
ing to housing-research firm
Attom Data Solutions. But a
few regions would get hit hard.
In Manhattan, for example, 64%
of purchase mortgages made
this year were for more than
$750,000, according to Attom.
In San Francisco, that proportion is 58%, and the surrounding counties of San Mateo,
Marin and Santa Clara register
between 44% and 55%.
Black Knight Inc., a mortgage
data and technology firm, calculates there are about 684,000
active mortgages with current
balances over $750,000. Black
Knight estimates that about
107,000 loans expected to be
made in 2018 would fall above
the $750,000 cap.
Also, homeowners would no
Deduction is phased out for
law, consulting and other
service businesses. For other
businesses, deduction is
limited to greater of...
Up to $157,500
individual income
(or $315,000 married)
No change;
eligible for
full deduction
50% of
wages
paid
25% of wages paid plus
OR 2.5% of business’s tangible,
depreciable property;
benefits real estate investors
Note: Trusts are now eligible for pass-through treatment; they were previously not eligible
under Senate version of the bill.
THE WALL STREET JOURNAL.
High-End Housing
Faces a Headwind
For Savers, Bill Offers a Mixed Bag
BY VERONICA DAGHER
With the Republican tax
overhaul heading toward passage in Congress, the few provisions left that affect retirement
savers present a mixed bag.
Given that the most controversial proposal—to cap the
amount people can contribute
before taxes to 401(k) plans—
failed to survive the legislative
process, “the bill is largely positive” for 401(k) savers, said Michael Webb, vice president of
Cammack Retirement Group, a
consulting firm. For example, he
said, the final legislation gives
participants in retirement plans
more time to repay loans when
they terminate employment.
Congress is expected to send
the bill to President Donald
Trump’s desk later this week.
The White House said it is
working on the details of when
Mr. Trump, a Republican, will
Continued from Page One
ing economic boom.
This time, the Trump administration says growth of 3% or
more is possible after more
than a decade near 2%. The
economy has already delivered
faster growth in the second and
third quarters. But there are
significant headwinds, including an aging workforce marked
by retiring baby boomers and
puzzling sluggishness in worker
productivity. Independent economists say the tax cuts won’t
pay for themselves, driving deficits higher by $1 trillion over a
decade even after accounting
for stronger growth.
Although polls suggest
households are skeptical of the
tax overhaul, expectations in
markets and among some companies couldn’t be much
higher. The Dow Jones Industrial Average has rocketed up
nearly 5,000 points this year.
William Sandbrook, chief
executive of U.S. Concrete Inc.,
a Texas-based supplier of
ready-mix concrete, expects to
invest in new trucks and facilities. “We’re not going to dividend it back, and we’re not going to do share buybacks,” he
said. “We can expand without
increasing our leverage.”
Other executives say tax
changes would have little bearing on their investment or hiring decisions, saying growth is
n-
constrained more by their ability to find skilled workers than
by high taxes.
“If we sense a business opportunity for us, whether the
tax rate is at 35% or 21% isn’t
going to make a difference,”
said Bill Hutton, president of
Titan Steel Corp., a Baltimore
distributor and processor of
steel products. “The converse
is if there isn’t a viable business opportunity, lowering the
tax rate isn’t going to create it
out of thin air.”
A December Wall Street
Journal survey of private-sector economists showed 9 of 10
professional forecasters expect
the tax bill to boost the U.S.
growth rate in the next two
years, but with most seeing a
modest increase. Forecasters
are split on long-term effects,
with nearly half saying growth
will eventually return to or dip
below its current pace.
The tax cut could boost
growth two ways: by raising
demand or raising supply. In
the short run, by giving businesses and consumers more
money, it could spur demand
for equipment, homes and
other goods. In the long run,
by encouraging people to work
more and businesses to invest
more, it could raise the economy’s supply capacity by increasing the number of workers and their productivity.
As demand stimulus, the
$1.5 trillion tax cut isn’t very
large, even though Mr. Trump
has called it the biggest tax cut
401(k) Borrowing
Loan balances of eligible 401(k)
participants have grown since 2010.
Average
$8,000
6,000
Median
4,000
2,000
0
2005
’10
’15
Source: EBRI/ICI Participant-Directed
Retirement Plan Data Collection Project
THE WALL STREET JOURNAL.
sign it.
Under the legislation, people
who leave a company with a
401(k) loan outstanding would
be able to repay the loan by the
day they file their federal tax
returns. Currently, these employees are typically required to
repay 401(k) loans within 60
days of their departure. Those
who fail to do so must pay income tax on the loan’s balance.
Borrowers younger than 59½
also often must pay a 10% penalty.
For many 401(k) borrowers,
the new rule will provide extra
time to get the money back into
a 401(k) account or roll it over
to a retirement account, where
it can grow tax-deferred.
The tax package would also
do away with recharacterizations of Roth conversions. With
a recharacterization, investors
who convert a traditional IRA to
a Roth IRA can undo the conversion, nullifying the bill they
would otherwise have to pay.
With a traditional IRA, account owners generally get to
subtract their contributions
VICTOR J. BLUE/BLOOMBERG NEWS
RATES
no
With the Republican tax
overhaul curtailing some
housing-related deductions,
the question many homeowners are asking is: Is now
the time to sell?
“Buyers have the pricing
power, not sellers” when faced
with the prospect of the tax
changes, says Nela Richardson, chief economist at realestate brokerage Redfin Corp.
The tax-overhaul proposal
would allow people to write
off the cost of state and local
taxes up to $10,000.
Changes to the mortgageinterest deduction may also
pressure the high-end housing
market. The combined bill
would allow homeowners to
deduct interest on mortgages
of up to $750,000. Current law
allows homeowners to deduct
interest on mortgages of up to
$1 million.
Reducing these deductions
would amount to another obstacle for the high-end housing market, which research
firm CoreLogic defines as any
sale price that is 25% or more
above the median price for
the metropolitan area. This
market has been hit by big
gains in supply in the past few
years that has led to a slowdown in price growth, says
Sam Khater, deputy chief
economist at CoreLogic.
Since buyers and sellers
know the same information
on the proposed tax plan,
buyers could be motivated to
offer less as they may be able
to deduct less in taxes when
they purchase, Ms. Richardson says.
BY ANNE TERGESEN
Customers shopping at Home Depot, which expects savings of $1.6 billion from lower tax rates.
in history. It accounts for 0.1%
of gross domestic product
each year over a decade, ranking it seventh or eighth in U.S.
history, estimates Ethan Harris, chief economist at Bank of
America Merrill Lynch. Demand stimulus tends to be less
effective at times like these,
when firms enjoy low borrowing costs, easy access to capital and an economy with low
and declining unemployment.
The economy was in a different position in 1981, when President Ronald Reagan signed
what Mr. Harris said were the
largest tax cuts in the postwar
period, cuts that lowered the
top individual rate to 50% from
70%. The economy was in need
of help again in 2001, when
President George W. Bush lowered the top rate to 33% from
39.6%, after the tech-stock bubble drove the U.S. into a mild
recession. The Fed started cutting short-term rates then, too.
Today, the economy is in
the ninth of year of expansion,
and the unemployment rate, at
4.1%, has fallen to a 17-year
low. The Fed is raising rates
and expects to continuing doing so into 2020.
For now, the tax overhaul
appears unlikely to alter the
Fed’s strategy. Officials signaled last week they don’t see
a need to raise rates more aggressively to prevent new
stimulus from overheating the
economy, in part because of
muted inflation pressures.
The Fed has raised its
growth forecast to 2.5% from
2.1% for 2018 and nudged up
projections
by
smaller
amounts for the two years after that. But officials still expect long-run growth of 1.8%,
even with the tax changes, a
full percentage point less than
Mr. Trump’s advisers.
from their income. Instead, they
must pay ordinary income tax
on the money when they withdraw it. A Roth, in contrast, offers no upfront tax deduction
but allows the money to be
withdrawn tax-free.
Converting from a traditional
IRA to a Roth—and paying income tax in the process—is a
way to set aside a tax-free pot
of retirement money that can be
used when distributions from a
regular IRA or 401(k) would
push the account owner into a
higher tax bracket or trigger
higher Medicare premiums.
The recharacterization strategy—which must be carried out
by Oct. 15 of the year following
a conversion—is frequently
used by people who convert a
traditional IRA to a Roth only to
see the account balance fall. By
recharacterizing, they can get
out of paying taxes on profits
that no longer exist.
To deliver long-run growth,
businesses would need to invest more in workers and
equipment. So far, they are
voicing a mix of caution and
optimism.
Rising stocks and low interest rates “are all symptoms of
an excess of liquidity,” said
Joel Shine, chief executive of
Woodside Homes Inc., which
builds homes in four Western
states. “To theorize more liquidity will supercharge the
U.S. economy? That’s a tough
argument to make.”
He said lower corporate
rates should make it more attractive for companies to locate operations in the U.S. On
the other hand, changes in the
tax code that decrease the potency of individuals’ mortgageinterest deduction and curb
breaks for state and local taxes
could soften demand in hightax metro areas.
Home Depot Inc. expects to
save about $1.6 billion with a
lower tax rate, Chief Executive
Craig Menear said this month.
The retailer said it would spend
on previously stated investment
goals, including e-commerce
plans and higher wages.
“With what might be left,”
Mr. Menear said in an interview, “we would look at if
there are other uses, whether
used for [share] buybacks or
whatever the best form is to
return it to shareholders.”
—Drew FitzGerald
and Sarah Nassauer
contributed to this article.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
co Fo
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ly
.
Wednesday, December 20, 2017 | A7
no
n-
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A8 | Wednesday, December 20, 2017
WORLD NEWS
U.S. Blames North Korea for Cyberattack
White House says it
has few options to
punish Pyongyang for
the WannaCry virus
Two Trump administration security officials, Tom Bossert and Jeanette Manfra, discussed the May cyberattack with reporters on Tuesday.
behavior soon, leaving little
doubt that sanctions the U.S.
already imposed following a
2014 hack blamed on North
Korea have done little to blunt
its menace.
North Korea says it needs
to develop nuclear weapons to
defend itself from its enemies
in the U.S. and South Korea,
which conduct regular military
exercises near its border that
it calls provocative. The U.S.
says the exercises are defen-
sive and preparatory in nature.
In an opinion piece published Tuesday in The Wall
Street Journal, Mr. Bossert
said the Trump administration
“will continue to use our maximum pressure strategy to
curb Pyongyang’s ability to
mount attacks, cyber or otherwise.”
North Korea was already
widely believed to be responsible for WannaCry. The U.K.,
whose National Health Service
was severely disrupted, publicly attributed the attack to
North Korea in October. Technical experts had also said
North Korea was responsible
for the attack, which encrypted information on victims’ computers and demanded ransom to unlock it.
Although the U.K. and technical experts had previously
determined North Korea was
responsible, the U.S. hadn’t officially said so before Mr.
ly
.
been severely sanctioned over
its nuclear-weapons program.
“We don’t have a lot of
room here,” Mr. Bossert said.
He noted that additional severe sanctions could risk devastating consequences, including starving the North Korean
people. Such a move also
poses security risks for South
Korea, a U.S. ally, if Pyongyang
lashes out.
He also said he doesn’t expect the country to change its
co Fo
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WASHINGTON—The White
House blamed North Korea’s
government for a massive cyberattack in May that crippled
hundreds of thousands of
computers around the world,
weeks after the U.K. had already cast blame on the country.
North Korea launched the
virus, known as WannaCry, in
a “careless and reckless attack” that damaged businesses
and put lives at risk, Tom
Bossert, the White House
homeland security and counterterrorism adviser, told reporters on Tuesday. Hospital
computer systems in the
United Kingdom were hit by
the attack, and schools and
business were also affected.
The U.S. government rarely
publicly attributes attacks to
specific actors or countries.
Mr. Bossert said the White
House did so this time in the
hope that publicly shaming
North Korea might help deter
future aggression.
“It’s important to call them
out,” he said.
Mr. Bossert’s statement
raised the question of how the
U.S. would respond to the latest North Korean cyber aggression. But he acknowledged
that there were few, if any,
ways left for the U.S. to punish
the country, which has already
MARK WILSON/GETTY IMAGES
BY SHANE HARRIS
Bossert’s comments.
The development comes as
the U.S. is at a standoff with
North Korea over its nuclearweapons program.
Pyongyang launched an intercontinental ballistic missile
last month, demonstrating
what many experts and American officials have concluded is
an ability to reach targets
across the continental U.S.
Mr. Bossert said it was incumbent upon companies to
do more to stop damaging
computer viruses from spreading. He praised tech firms, including Microsoft and Facebook, for working to disable
the virus. And he said that U.S.
allies also had helped to mitigate the damage.
Mr. Bossert also pledged
that the U.S. government
would offer more assistance
and information to companies
that are targeted in cyberattacks. In the past, many companies have complained that
the government didn’t give
them enough information or
advance warning about attacks.
This isn’t the first time that
the White House has publicly
called out North Korea for its
aggressive behavior. In 2014,
President Barack Obama said
the country had targeted Sony
Pictures Entertainment in an
attack that destroyed computers and severely hindered the
company’s business operations. North Korea targeted
the entertainment company in
retaliation for its release of a
film that satirized the country’s leader, Kim Jong Un, officials said at the time.
China’s Rise Puts Trump on Defensive In a Shift, Beijing
Stresses Debt Less
BY LINGLING WEI
Chinese air force planes are shown conducting training exercises last month.
n-
harsher—but more realistic—
view on China than that of
the Obama administration.
Michael Green, the former
director for Asia in George
W. Bush’s National Security
Council, writes that the
strategy is “far more honest
about the challenges.”
Some of the language has
strong Cold War overtones,
including talk of boosting
U.S. nuclear deterrence and
designating both China and
Russia as “revisionist powers” seeking to upend the
U.S.-led global order.
Yet the document is also a
frank acknowledgment of
widely shared concerns about
China’s rise. Its complaint of
China’s bullying of other states
using “economic inducements
and penalties, influence operations, and implied military
threats,” echoes fears spreading from Asia to Europe.
Mr. Trump’s challenge will
be to translate these grievances into a program. His security document vows U.S.
leadership and technology to
keep open common do-
no
SHANGHAI—How would a
U.S.-China military standoff in
the South China Sea play out?
In one hypothetical scenario—laid out by the Australian strategic-studies professor Hugh White—Chinese
ships defy U.S. warnings and
steam toward a Chinese-built
reef in disputed waters.
In the Situation Room,
the U.S. president is
briefed on his
options. Sinking a Chinese vessel is one. But it
may lead to war—conceivably a nuclear exchange.
“General, tell the Navy to
pull our ships back and let
the Chinese pass,” the president orders. “I’m not willing
to risk a major war.”
And with that, U.S. credibility in Asia collapses.
Donald Trump’s national
security review, unveiled
Monday, aims to stave off
that outcome even as it reckons with a new reality: Great
power rivalry has returned
to the world.
CHEN LIANG/XINHUA/ZUMA PRESS
CHINA’S WORLD
By Andrew Browne
I
t calls China a “strategic
competitor,” while it also
notes some cooperative
elements of the U.S.-China
relationship. The straight description of the state of play
between the world’s two largest economies shows a
mains. The question is
whether he can summon the
resources—and the will—to
confront China.
M
ost critically, will it
be enough to force
China to back off?
Mr. White, in an essay
called “Without America: Australia in the New Asia,” argues
that in the struggle for dominance in Asia, “America will
lose, and China will win.”
His reasoning: No U.S.
president will risk going to
war with China to hold on to
American hegemony in Asia.
It hasn’t helped matters
that White House efforts to
counter China in the past have
in the end amounted to little.
If anything, Mr. Trump’s
task is more daunting than his
predecessor’s. The Chinese
economy is on a roll, defying
Western predictions of collapse. More than ever, Asian
economies are drawn into
China’s orbit. And national
wealth buys military power.
Mr. Trump’s challenge will
be to convince Asian friends
and allies he is serious about
upholding U.S. primacy in
the region. To have any hope
of success, Mr. Trump will
have to construct a new coalition. But in his first year
in office he has walked away
from global leadership.
Moreover, his bonhomie
with Chinese President Xi
Jinping at their summit last
month—along with his failure to raise human-rights
and other sensitive issues—
raised questions around Asia
about his resolve to match
his anti-China campaign talk
with action.
M
r. White says he
thinks the U.S. president will get
tougher with China on trade,
but doubts that he has either
the intention or the capacity
to push back effectively
against the strategic challenge from Beijing.
If Beijing comes to the
same conclusion, the South
China Sea could again see
fresh Cold War-style brinkmanship.
Security Stance Sparks Warning From ‘Rival’
BY EVA DOU
AND CHUN HAN WONG
BEIJING—Chinese officials
chided the U.S. for labeling
China as a “rival” power,
warning that President Donald
Trump’s confrontational rhetoric would be self-defeating.
In public remarks and commentaries on Tuesday, Chinese
diplomats and state media
roundly criticized Mr. Trump’s
decision to describe China as a
major threat in a presidential
report on national security
strategy—the first such designation since Washington
started issuing these documents three decades ago.
“China will never seek de-
velopment at the price of sacrificing other countries’ interests,” Chinese Foreign Ministry
spokeswoman Hua Chunying
told a regular briefing on
Tuesday. “We urge the U.S. to
stop deliberately distorting
China’s strategic intentions
and discard outdated Cold War
zero-sum mentalities, or risk
harming others and itself.”
The national security strategy laid out by Mr. Trump on
Monday was the first to omit
language saying the U.S. would
welcome or support China’s
growing international role
since Congress in 1986 mandated the president to make
the periodic report.
All U.S. national security
strategies issued by presidents
from Ronald Reagan through
Barack Obama had included a
formulation saying the U.S.
welcomed China’s growth as a
responsible power.
In China, observers say Mr.
Trump’s adoption of a more
confrontational tone underscores the shift in the global
balance of power away from
the U.S.
“China has set a goal that
logically threatens the U.S.
view of its dominant position
in the world,” said Shen Dingli,
professor of international relations at Shanghai’s Fudan University. “The U.S. isn’t wrong
in perceiving Chinese competition for its place at the center
stage of global affairs.”
Departing from cooperative
tones in past reports, Mr.
Trump’s national security strategy condemned China for projecting influence at the expense
of neighbors’ sovereignty, exporting corruption and stealing
intellectual property.
It said the U.S. would consider restricting visas to science and technology students
from “designated countries.”
China’s ministries of commerce,
defense and education didn’t
respond to requests to comment.
The Chinese Embassy in
Washington said Mr. Trump’s
speech was laced with “selfcontradictory rhetoric.”
BEIJING—As China prepares to unveil its economic
blueprint for 2018, people familiar with the plan say it will
show that Beijing is finding it
hard to cut debt without jeopardizing growth.
In the blueprint to be unveiled on Wednesday, talk of
bringing down debt, the priority for the past two years, is
gone in favor of a pledge to
just control the rise in borrowing, according to these
people.
The softening of the goal,
decided this month by the
Communist Party’s top leadership, is an official acknowledgment of how hard it is for Beijing to wean the economy off
debt-driven growth.
“Let’s face it,” said an official involved in policy discussions, “it’s not realistic to reduce leverage when the whole
economy relies on banks for
financing.”
The International Monetary
Fund and the World Bank have
urged Beijing to tackle debt
even if that squeezes economic expansion in the short
term.
By tempering the stance on
debt, Beijing is signaling that
it still seeks relatively high
rates of growth and that more
debt will be tolerated to
achieve that goal. For the
world, that means greater demand from China for oil and
other commodities, but also
continued worries that Chinese debt could spiral out of
control and hurt the global
economy.
“The Chinese government
is bowing to the complicated
reality it faces, recognizing
the risks of debt-fueled
growth but unable to wean itself from rising debt levels,”
said Eswar Prasad, a China
scholar at Cornell University
and the IMF’s former top official in China.
For the past two years, deleveraging has been a centerpiece of President Xi Jinping’s
economic policy. But while
regulators reined in borrowing
between banks, the kind of
practice that enabled smaller
lenders to ramp up risky borrowing, the country’s overall
debt load continues to climb
faster than growth.
China’s ruling 25-member
Politburo decided on the shift
on Dec. 8 as it set the agenda
for the annual Central Economic Work Conference this
week, where economic priorities are laid out in greater detail.
A statement after the Politburo meeting listed control of
the “macro-leverage ratio,” or
the country’s ratio of debt to
gross domestic product, as a
major piece of the government’s effort to fend off risks
next year. That contrasted
with its statement ahead of
last year’s economic conference, which described debt reduction as a key task.
The change followed rounds
of discussions by Mr. Xi’s economic deputies and financial
regulators since the summer,
according to the people familiar with the deliberations. An
oft-cited issue during those
talks, the people said, involved
state-owned banks’ outsize
role in economic activity.
That led to the conclusion
that with businesses lacking
easy access to other forms of
financing, such as stock sales,
tight restrictions on bank
loans would hurt growth too
much.
A World Bank report issued
Tuesday shows outstanding
bank loans reached 150% of
China’s GDP in November, up
from 103% a decade ago.
Red Ink
In its crackdown on debt, Beijing has reined in borrowing between
banks, but overall debt has continued to rise faster than growth.
Interbank debt as a share
of all bank liabilities
China's overall debt
as a percentage of GDP
25%
250%
20
200
15
150
10
100
5
50
0
0
’09
’11
*Estimate
Source: Macquarie Group
’13
’15
’17
’09
’11
’13
’15
’17*
THE WALL STREET JOURNAL.
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A10 | Wednesday, December 20, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
Saudis Shoot Down Missile Over Capital
BY ASA FITCH
Riyadh Sets Record
Budget Spending
RIYADH, Saudi Arabia—
Saudi Arabia plans to raise
spending to a record level
next year to boost growth
and finance a costly economic transformation plan.
The Finance Ministry announced planned budget
spending of 978 billion Saudi
riyals ($260.8 billion), an increase from the $237 billion
it projected it would spend
this year. That is a record in
terms of budgeted spending,
although actual spending has
exceeded that level before.
These plans reverse a period of austerity.
The government has used
cuts to infrastructure projects and government employee benefits to chip away
at a budget deficit that ballooned to about 15% of gross
domestic product in 2015
amid rising spending and declines in oil prices.
The deficit will shrink to
$61.3 billion, or 8.9% of GDP,
at the end of this year, the
Finance Ministry said, as oil
prices recover, boosting state
coffers.
—Asa Fitch
Houthis at a parade Tuesday marking 1,000 days of conflict with the Saudi-led coalition.
signature of that shift, as has
been Saudi Arabia’s decision to
cut commercial and diplomatic
ties with Iran last year and with
Qatar this summer. Saudi Arabia and its allies have accused
Qatar of supporting terrorism
and allying with Iran. Doha denies it supports terrorism.
The war across Saudi Arabia’s southern border in Yemen pits the Saudi-led coalition against the Houthis, who
took over the capital in late
2014. The coalition is trying to
restore the internationally
backed president, Abed Rabbo
Mansour Hadi.
Despite more than 2½ years
of airstrikes and a ground
campaign, the Houthis remain
in control of the capital, as the
country’s humanitarian crisis
deepens. Many of Yemen’s
provinces are on the brink of
famine, while a cholera epidemic is approaching a million
suspected cases, according to
the World Health Organization.
The Houthis have fired doz-
ens of ballistic missiles into
Saudi territory during the conflict, but those used in recent
months have flown farther
than in the past, though they
haven’t caused significant
damage.
The U.S. has backed Saudi
Arabia’s allegation that Iran is
supplying the Houthis with advanced ballistic missiles in violation of U.N. arms restrictions, accusing Iran of
destabilizing the region using
its proxies and weapons.
ly
.
RIYADH, Saudi Arabia—
Saudi Arabia intercepted a
ballistic missile fired by Yemen’s Houthi rebels over its
capital city on Tuesday, the
second such incident in two
months and a potential new
flashpoint in the volatile
Saudi-Iranian relationship.
A spokesman for the Saudiled military coalition fighting
the Houthis in Yemen said the
missile was intercepted south
of Riyadh and caused no casualties. The spokesman reiterated charges that Iran was supplying missiles to the rebels.
An Iranian official at the
United Nations didn’t respond
to a request to comment.
Houthi authorities said the
rebels fired a Volcano H2 missile at Riyadh, targeting a
meeting of Saudi leaders at
the Al-Yamamah royal palace,
according to the Houthis’ official Saba news agency.
It was the same type of
missile the Houthis said they
fired at Riyadh’s airport on
Nov. 4. That missile was intercepted as well. Saudi Arabia
and the U.S. accused Iran of
supplying that munition to the
Houthis. Iran denied involvement and U.N. experts say evidence of the Iranian origins of
the missile was inconclusive.
The blast caused by the
missile’s interception on Tuesday was heard across the capital. Video and photos posted
on social media showed a puff
of white smoke in the sky, apparently at the point of interception.
The attack raises the prospect of new strains in the relationship between Iran and
Saudi Arabia, the two main rivals for power and influence
in the Middle East. Saudi Arabia views the Houthis, a Shiite
movement that controls the
Yemeni capital San’a, as proxies of Iran. Iran denies arming
the Houthis.
The competition for regional dominance is expected
to pick up pace as Islamic
State extremists near defeat in
Iraq and Syria, and as Iran
seeks to secure supply routes
across those countries into
Lebanon, where its proxy Hezbollah is based. Saudi foreign
policy has taken a bold, confrontational pivot in the past
three years, corresponding
with the rise of its outspoken
32-year-old Crown Prince Mohammed bin Salman.
The Yemen war has been a
KHALED ABDULLAH/REUTERS
Yemen’s Houthi rebels
say they aimed missile
at meeting of top
officials in royal palace
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German Christmas Markets Mix Cheer, Tight Security
Visitors on Tuesday paid their respects at a memorial for the victims of last year’s deadly attack at a Christmas market in Berlin.
n-
business, attracting at least 85
million visitors a year and
generating sales of more than
€1 billion ($1.17 billion), according to the German Showmen’s Association.
In a country that puts up
heavy restrictions on the use
of video surveillance, cameras
no
BERLIN—For decades, Germany’s Christmas markets
have featured mulled wine, carousels and hand-carved wood
trinkets. This year, concrete
blocks, surveillance cameras
and plainclothes police officers
also will be part of the scene, a
year after a deadly attack here.
German authorities have
stepped up security around the
beloved seasonal festivals in a
bid to prevent a repeat of last
year’s Berlin Christmas market
attack that left 12 people dead.
But many security experts
say the efforts may do little to
deter attackers and could even
increase casualties should
things go wrong. In fact, they
say, a genuine security upgrade
for the country’s Christmas
markets would be expensive,
intrusive and might not work.
Take concrete barriers, said
Chris Phillips, former head of
the U.K.’s National Counter Terrorism Security Office. “If a vehicle hits a block and the block
explodes, it’s extremely dangerous.…Shards of flying concrete
will kill people.” He said police
are too focused on past threats
instead of anticipating the militants’ next moves.
“Historically, we’ve seen
tactics used on battlefields
move to urban environments,”
said Bruce Hoffman, director
of security studies at Georgetown University’s Walsh
School of Foreign Service.
Germany’s more-than-1,450
Christmas markets are big
ODD ANDERSEN/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY WILLIAM WILKES
fear a repeat of attacks in
Paris, Brussels and Copenhagen, where marauding gunmen
wreaked havoc. This month,
police found a cache of nearly
200 bullets in a garage near a
Christmas market in Berlin. A
police spokeswoman said no
arrests have been made and an
are making their first appearances at several markets this
year. Uniformed police armed
with automatic pistols patrol
the city center while undercover police mingle with the
crowds, supported by private
security guards.
Authorities and organizers
investigation is continuing.
Heavily armed helicopter
SWAT teams are on standby in
barracks across Germany.
In the past, authorities resisted tighter security, arguing
they would cause unnecessary
alarm. This changed Dec. 19,
2016, when Anis Amri, a re-
WORLD WATCH
Catalan Businesses Pin Hopes on Election
GREECE
MADRID—The
upheaval
over this autumn’s independence push by Catalan separatists cost Barcelona restaurateur Carlos Manresa a third
of his revenue as customers
stayed home, he says, prompting him to lay off eight employees and temporarily close
one of his three upscale establishments.
Mr. Manresa is now hoping
Thursday’s vote to elect a new
regional parliament in Catalonia will hand a win to parties
that oppose secession, bringing
a turbulent period to an end.
“All we want is a bit more hope
so that people start to consume,” the 59-year-old said. “It
all depends on the election.”
Concerns about the economic and business fallout of
the secessionist drive in Catalonia are galvanizing opposition to separatist parties and
have forced secessionists to
tone down their calls for an
independent Catalan republic
ahead of the pivotal vote. But
polls suggest the vote is unlikely to yield the clarity Mr.
Manresa and others seek.
Around 3,000 companies
have shifted their legal headquarters out of Catalonia since
the unauthorized referendum
on secession from Spain on
LORENA ROS FOR THE WALL STREET JOURNAL
BY JEANNETTE NEUMANN
Carlos Manresa sits at Cal Pinxo, one of his restaurants in Barcelona.
Oct. 1. While the moves were
mainly formal changes in domicile, Mr. Manresa and other
business leaders fret that employees and factories could
follow if Catalans elect a majority pro-independence assembly that resumes direct
confrontation with Madrid.
They cite worrisome parallels with Quebec, where the
economy took a hit as firms
left during a decadeslong debate on secession from Canada, as well as with Britain,
where companies have started
to explore options abroad following last year’s vote to leave
the European Union.
Prime Minister Mariano Ra-
joy called Thursday’s regional
elections after imposing direct
rule on Catalonia in late October, stymieing Catalan separatist leaders’ unilateral declaration of independence.
Once Catalan lawmakers
form a new government, Mr.
Rajoy has said he will hand
power back to the region as
long as the new leaders pledge
to adhere to Spanish law,
which prohibits any steps toward unilateral secession.
Polls point to further uncertainty after the ballot, however. Pro-independence parties
could win more seats in the
regional assembly than prounion groups, many polls
show, but still fall short of a
majority, leaving a hung parliament. That could mean
weeks or months of negotiations to cobble together a new
Catalan government.
Business concerns have
found a particular advocate in
Ciudadanos, a party that
fiercely opposes Catalan independence and has seen its
support soar.
“As long as the threat exists
that pro-independence parties
could return and impose a unilateral path to secession, it
will be difficult to convince
companies to return,” said Antonio Roldán, Ciudadanos’ economic spokesman.
Since October, unemployment in Catalonia has nudged
higher, retail sales have fallen
and tourist flows have slipped.
Even if separatists win, as
long as they abandon their unilateral path and agree to comply with Spanish law, said
Javier Faus, founder of Barcelona-based Meridia Capital,
which manages around €1 billion ($1.17 billion) in assets, has
been among the Catalan business leaders seeking to convince
separatist leaders to back away
from direct confrontation with
Madrid. “We believe the damage will be extremely contained
and limited to this short-term
slowdown of the economy.”
jected asylum seeker from Tunisia, drug dealer and known
radical, plowed a hijacked
truck into a Christmas market
on Breitscheidplatz, near the
Berlin Zoo.
Cologne’s main Christmas
market no longer allows revelers to bring rucksacks or suitcases. Roads through Frankfurt’s main city center are
blocked
by
checkpoints,
parked vans and two-deep
rows of concrete blocks.
“There are police here.
There are no vehicles,” said
Len Doucette, a 68-year-old
retired
Royal
Canadian
Mounted Police officer from
Ottawa, Ontario, sightseeing at
a Frankfurt Christmas market
with friends. “I feel very safe.”
German cities could follow
the lead of New York and London and turn to permanent antitruck defenses disguised as
street furniture, including crashresistant bollards, sculptures
and benches, Mr. Phillips said.
Encircling markets would
be the best way of protecting
them, Mr. Hoffman said. A
more-intrusive option would
be airport-style security
checkpoints.
Organizers say such measures would cost too much
and kill the spirit of markets
that typically sprawl across
city centers.
“There is no total security,”
said Albert Ritter, president of
the Berlin-based German Showmen’s Association. “If someone
wants to do something criminal, they will find a way.”
Parliament Approves
Upbeat 2018 Budget
Parliament approved Greece’s
2018 budget, which the government hopes will be the last in a
bailout program after eight consecutive years.
The budget projects economic
growth will accelerate and exceed bailout targets, but includes further austerity that
goes beyond the end of the program in August.
In a vote after a five-day debate in the 300-seat Parliament,
the budget—traditionally seen as
a vote of confidence—was supported by the 153 lawmakers of
the coalition government, led by
the left-wing Syriza party.
The government expects 1.6%
growth in gross domestic product in 2017, to accelerate to
2.5% in 2018. Greece has spent
most of the past decade in recession.
—Nektaria Stamouli
EUROZONE
Wage Growth Slows,
Hurting Inflation Goal
Wage growth slowed in the
three months to September, a
blow to the European Central
Bank’s hopes that falling unemployment will help it meet its in-
flation target over coming years.
The 19-nation eurozone economy has grown much more
strongly than expected this year.
The ECB’s economists now forecast the eurozone economy is
on course to expand 2.4%, which
would make it the best year
since 2007.
That acceleration has seen
the jobless rate fall to 8.8% in
October, its lowest level since
the start of 2009.
The European Union’s statistics agency, Eurostat, said wages
were 1.6% higher in the three
months through September than
a year earlier, a slowdown from
the 2.1% increase in the prior
three months, which was the
fastest in more than two years.
—Paul Hannon
CANADA
Foreign Ownership
Of Homes Is Low
The most comprehensive
study to date by Canadian datagathering agencies on foreign
homeownership indicate the
level of nonresident activity to
be relatively low.
Statistics Canada said nonresidents owned 3.4% of all residential properties in the Toronto-area market. The share
was slightly higher in the Vancouver market, at 4.8%.
—Paul Vieira
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CLASSIC FUSION CHRONOGRAPH
SPECIAL EDITION "NEW YORK"
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A12 | Wednesday, December 20, 2017
WORLD NEWS
LIMA, Peru—One of Latin
America’s
fastest-growing
economies and a darling of
Wall Street has been thrown
into uncertainty as its marketfriendly president, Pedro Pablo
Kuczynski, faces the possibility of impeachment this week
in a corruption scandal.
The president is in trouble
over documents showing he
had business ties with Brazilian industrial group Odebrecht
SA more than a decade ago
while he was a senior government official, despite his repeated denials that he had any
links to the firm. Odebrecht is
facing a corruption probe of
its operations in Peru.
The Congress will vote
Thursday on whether to remove Mr. Kuczynski, a former
World Bank economist and one
of Washington’s closest allies
in Latin America, for “permanent moral incapacity.” Ana-
Stepping Up
South Africa’s growth has slowed
during Jacob Zuma’s presidency
but the central bank expects a
mild rebound.
GDP, change from a year earlier
4%
3
Forecasts
2
1
0
–1
–2
20092010’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19
Sources: World Bank (GDP); South African
Reserve Bank (forecasts)
THE WALL STREET JOURNAL.
Investigators say President Kuczynski had ties to an industrial
group being investigated for paying bribes to win contracts.
president, Martin Vizcarra,
would succeed the president in
the event of impeachment,
there are doubts about whether
he would be able to govern until the end of the term in 2021
because of ruling-party weak-
ness in Congress. Business
leaders have said the uncertainty could hurt growth in one
of the top mining nations.
Anticorruption activists accuse the opposition of rushing
to impeach Mr. Kuczynski to
strengthen Keiko Fujimori, the
opposition leader and daughter of Mr. Fujimori whose Popular Force party has a majority in Congress. Ms. Fujimori’s
party has tried to oust members of the constitutional tribunal and the attorney general
amid an investigation into allegations of illicit donations
from Odebrecht to her own
presidential campaigns.
“It will be very bad for the
country if the president is declared immoral, but it would
be terrible if he is taken down
and Fujimori’s party takes
control,” said José Ugaz, a former prosecutor.
Last week, a congressional
committee investigating Odebrecht said it received documents from the firm showing it
paid $780,000 from 2004 to
2007 to Westfield Capital, a
business owned by Mr. Kuczynski. At the time, Mr. Kuczynski
was finance minister and prime
minister under President Alejandro Toledo, whose administration awarded big contracts
to Odebrecht. Mr. Kuczynski
said he turned over Westfield’s
management to his business
partner when he entered the
Toledo administration.
South Africa Economy Faces Pressure
BY GABRIELE STEINHAUSER
JOHANNESBURG—Investors and CEOs rallied around
the African National Congress’s new party chief on
Tuesday, but the union-leaderturned-tycoon will have to balance pressures to reduce South
Africa’s debt and boost growth
with his own party’s demands
for policies directly supporting
the poor, black majority.
Cyril Ramaphosa, the deputy president and one of the
country’s richest black men,
campaigned on the promise of
a “New Deal” for the stuttering economy and corruptionplagued government. In a
party vote on Monday, he beat
a rival who—endorsed by
President Jacob Zuma—called
for aggressive redistribution
of wealth and attacks on
“white monopoly capital.”
Investors hope that as the
leader of the party that has
won an absolute majority in
all national elections since the
end of apartheid, Mr. Ramaphosa will spur the ANC to cut
red tape and step back from
demands to expropriate land
owned by white farmers.
“Your election presents an
opportunity to renew confidence in South Africa, both internally and externally,” Mike
Brown, the chief executive of
Nedbank Group Ltd., one of
the country’s biggest banks,
wrote in an open letter to Mr.
Ramaphosa.
Banks led the positive market reaction to Mr. Ramaphosa’s election as ANC leader,
and while the rand halted its
rally, the currency has still
strengthened over the past
month as a Ramaphosa victory
looked increasingly likely.
Yet Mr. Ramaphosa faces
obstacles in fulfilling his
promises to lift South Africa’s economic growth to 3%
in 2018 and 5% by 2023 from
a lackluster 1.3% estimated
for this year, and create a
million new jobs to bring
down a 27.7% unemployment
rate.
Chief among his challenges
is Mr. Zuma, whose term in office continues into 2019.
Growth has slowed in recent
Sentence
At Home
BY LUCIANA MAGALHÃES
AND SAMANTHA PEARSON
SÃO PAULO—Marcelo Odebrecht, heir to Latin America’s
biggest construction empire,
was released from jail Tuesday after serving 2½ years of
what was originally an almost
two-decade sentence for corruption, sparking public outrage and concerns the billionaire tycoon may reassert
control over the business.
Television images showed
Odebrecht’s former chief executive en route by private plane
from the southern city of Curitiba to his mansion in São
Paulo, where he will serve an
additional 7½ years under
house arrest after agreeing to
testify in exchange for a
lighter sentence.
Odebrecht admitted last
year to paying almost $800
million in bribes for contracts
across Latin America—first
unearthed by the so-called Car
Wash investigation—that continues to shake up politics in
countries from Colombia to
the Dominican Republic.
As Mr. Odebrecht headed
home, in neighboring Peru,
President Pedro Pablo Kuczynski was facing possible impeachment over his links to
the Brazilian company. Mr.
Kuczynski has denied wrongdoing.
Once dubbed “prince of the
contractors” by Brazilian
newspapers, Mr. Odebrecht
was the first high-profile
businessman to be imprisoned in the Car Wash probe,
raising hopes for an end to
Brazil’s entrenched culture of
impunity for the rich and
powerful.
Mr. Odebrecht, first imprisoned in June 2015, was sentenced to more than 19 years
in jail in March. But after a
plea deal his sentence was reduced to 10 years.
ly
.
BY RYAN DUBE
lysts say opposition lawmakers
leading the drive appear to
have more than the two-thirds
majority required to approve
the impeachment in the 130member Congress.
“It is going to be very difficult for him to survive this,”
said Eduardo Dargent, a political scientist at Peru’s Catholic
University. “The feeling is that
there was a conflict of interest
in the best of cases…or in the
worst of cases he is hiding
something.”
Mr. Kuczynski’s removal after
16 months in office would make
him the first sitting president in
Latin America to be ousted in
the Odebrecht scandal. Odebrecht admitted last year in a
deal with the U.S. Justice Department to paying nearly $800
million in bribes to win infrastructure contracts in Latin
America, including $29 million
in Peru from 2005 to 2014.
Impeaching Mr. Kuczynski,
who was educated at Princeton and is a former U.S. citizen, could usher in instability
less than 20 years after the
last political upheaval, when
then-President Alberto Fujimori was removed from office.
While Mr. Kuczynski’s vice
years under Mr. Zuma, and the
president has clashed with
business leaders over some of
his policies.
The election of three Zuma
allies to the ANC’s six-person
executive, which includes Mr.
Ramaphosa, will reduce the
new party leader’s influence
over cabinet selection and
government policies.
That will also make it
harder for him to deliver on
another key promise: fixing
state-owned
enterprises,
where corruption and bad
management have led to expensive government bailouts.
At the same time, Mr. Ramaphosa will have to make
concessions to his own leftwing backers.
co Fo
m rp
m e
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Congress votes
Thursday on whether
to remove president in
a corruption scandal
OFFICE OF THE PRESIDENT OF PERU/EPA/SHUTTERSTOCK
Peru Braces for Impeachment Vote Odebrecht
To Finish
FROM PAGE ONE
Costly Therapies
A selection of some of the most-expensive drugs in the U.S.
Drug
Treats
Biogen’s Spinraza
Spinal muscular atrophy
$750,000 for first year, $375,000 annually after
Novartis’s Kymriah
Leukemia
$475,000 for one-time treatment
no
n-
Gilead Sciences’ Yescarta Lymphoma
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for
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Cost
$373,000 for one-time treatment
Genentech’s Hemlibra
Hemophilia A
$482,000 for first year, $448,000 annually after
Celgene/Agios’ Idhifa
Leukemia
$297,984 a year
Alexion’s Soliris
Paroxysmal nocturnal
hemoglobinuria
$500,000 a year
Sanofi’s Lumizyme
Pompe disease
$298,000 a year
Note: List prices, before any discounts or rebates that may be offered
Source: The companies
GENES
Continued from Page One
Mr. Marrazzo said that among
the factors the company has
considered in pricing is the economic value of sight, including
multimillion-dollar jury awards
of damages to people who lost
their vision in accidents and
filed lawsuits, he said.
Prices for new drugs for cancer and rare diseases have been
approaching the $1 million
threshold in recent years, including Biogen Inc.’s Spinraza
for spinal muscular atrophy,
which costs $750,000 for the
first year of treatment.
Some critics have said such
pricing for Luxturna would be
excessive, partly because researchers don’t know how long
the benefit of Spark’s treatment
will last, and whether patients
will need additional injections.
The Institute for Clinical and
Economic Review, a nonprofit
group in Boston, concluded in a
recent report that Spark’s treatment isn’t cost-effective at a
price above $573,000, assuming
it is given to a three-year-old
and a year of healthy life is
worth $150,000.
Health insurers worry that
pricing for Spark’s product and
future gene therapies “could
kind of get away from folks and
lead to even more problems
with affordability,” ICER President Steven Pearson said in an
interview.
Researchers have been pursuing gene therapy—delivering
a normal gene to a patient to
replace a faulty one—for decades in hopes it can yield
treatments and cures for genetic conditions that have no
other treatments, or to improve
upon older medicines. More
than 560 clinical trials are under way testing gene- or cellbased therapies for a range of
conditions including hemophilia
and sickle cell disease, according to the American Society of
Gene & Cell Therapy.
GlaxoSmithKline PLC sells a
gene therapy in Europe, Strimvelis, for an immune disorder.
Glaxo, Spark and other companies including Regenxbio are
developing additional gene
therapies.
Researchers hope that for
some conditions, patients might
Prices for new drugs
for cancer and rare
diseases have been
nearing $1 million.
only have to receive a one-time
dose of gene therapy for a longterm benefit or cure, rather
than take pills or receive injections over time.
“It really provides a way forward for a whole range of rare
conditions that have not been
previously treated,” said Dr.
Katherine A. High, Spark’s president and head of research, who
co-founded the company when
it was spun out from Children’s
Hospital of Philadelphia in 2013.
Spark has licensed patents and
technology from Children’s Hospital, the University of Pennsylvania, and the University of
Iowa Research Foundation.
Spark’s gene therapy is for
people with a mutation in a
gene called retinal pigment epithelium 65, or RPE65. These patients generally have trouble
seeing at night or in dimly lit
rooms but have partial vision in
sunlight or well-lit places,
though that usually worsens as
patients get older.
Spark’s therapy is a functional copy of the RPE65 gene
wrapped in a virus that has
been stripped of its ability to
replicate. Eye surgeons inject
the therapy into the back of patients’ eyes during a procedure
in the hospital.
A clinical trial that began in
2012 tested Luxturna in 20 patients with retinal dystrophy
and compared them with nine
patients who didn’t get the
therapy; their average age was
15. At the start of the trial, each
patient had to walk an obstacle
course in a research lab. Researchers tracked the lowest
level of lighting in which the
patients were able to successfully navigate the course. A year
later, they walked the same
course to test whether vision
had improved.
Some 65% of the patients
who received Spark’s therapy
successfully navigated the obstacle course at the dimmest
light level tested after one year,
while none of the control patients passed the test at that
level, according to results published in The Lancet in August.
Side effects included retinal
tears and certain eye problems,
but most were mild and were resolved.
The patients in the control
group were allowed to get the
treatment after a year.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A13
no
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co Fo
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ly
.
NY
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.
A13A | Wednesday, December 20, 2017
NY
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A13B
It’s Human Nature To
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And the Human Immune System has revealed the way.
This therapy gives new hope
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immune system.
This represents a breakthrough that will
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John Theurer Cancer Center at
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Immunotherapy is using the patient immune
system to fight cancer and it is transforming
the field of oncology. Chimeric antigen receptor
(CAR) T-cell therapy is the first cell-based
immunotherapy approved by the FDA for the
treatment of acute lymphoblastic leukemia (ALL)
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Collectively, our physician leaders at John
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With 1,200 team members collaborating in a
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The most difficult to treat cancers require the
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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.
A14 | Wednesday, December 20, 2017
* ****
THE WALL STREET JOURNAL.
IN DEPTH
BITCOIN
Continued from Page One
“brute force” to crack the code.
The 5-foot-tall computer system is working so hard that it
sits in a 270 gallon tank in special mineral water to disperse
the heat it generates. Still, Mr.
Neumeier figures it could take a
couple hundred years to run
through all the possible combinations of letters, numbers and
symbols.
“I should probably be about
332 years old by then—hopefully bitcoin will be worth
something,” he says.
A video producer in the San
Francisco Bay Area named Nick
Testa Jr. let a client pay a $150
bill in bitcoin in 2014.
Mr. Testa’s fraction of a bitcoin would be worth around
$2,500 today—if he could get it.
He still has his old laptop, but
when he opened it, the digital
wallet where his bitcoin was
stored had been deleted, possibly a victim of overzealous
hundred yards. The police stationed there offer water, cellphone charging and other services, while also taking in feeds
from nearby surveillance cameras.
Young Uighur men are routinely pulled into the stations
for phone checks, leading some
to keep two devices—one for
home use and another, with no
sensitive content or apps, for
going out, according to Uighur
exiles.
Erdaoqiao, the heart of Uighur culture and commerce in
Urumqi, is where ethnic riots
started in 2009 that resulted in
numerous deaths. The front entrance to Erdaoqiao Mosque is
now closed, as are most entries
to the International Grand Bazaar. Visitors funnel through a
heavily guarded main gate. The
faces and ID cards of Xinjiang
residents are scanned. An array
of cameras keeps watch.
After the riots, authorities
showed up to shut down the
shop Mr. Imin was running at
the time, which sold clothing
and religious items. When he
protested, he says, they clubbed
him on the back of the head,
which has left him walking with
a limp. They jailed him for six
months for obstructing official
business, he says. Other jail
stints followed, including eight
months for buying hashish. The
police in Urumqi didn’t respond
to requests for comment.
Mr. Imin now sells fruit and
freshly squeezed pomegranate
juice from a cart. He worries
that his flagged ID card will
bring the police again. Recently
remarried, he hasn’t dared visit
his new wife’s family in southern Xinjiang.
Chinese rulers have struggled
for two millennia to control Xinjiang, whose 23 million people
are scattered over an expanse
twice the size of Texas. Beijing
sees it as a vital piece of President Xi’s trillion-dollar “Belt and
Road” initiative to build infra-
structure along the old Silk
Road trade routes to Europe.
Last year, Mr. Xi installed a
new Xinjiang party chief, Chen
Quanguo, who previously handled ethnic strife in Tibet, another hot spot. Under Mr. Chen,
the police presence in Xinjiang
has skyrocketed, based on data
showing exponential increases
in police-recruitment advertising. Local police departments
last year began ordering cameras capable of creating threedimensional face images as well
as DNA sequencers and voicepattern analysis systems, according to government procurement documents uncovered by
Human Rights Watch and reviewed by the Journal.
Tahir Hamut, a Uighur poet
and filmmaker, says Uighurs
who had passports were called
in to local police stations in
May. He worried he would draw
extra scrutiny for having been
accused of carrying sensitive
documents, including newspaper articles about Uighur separatist attacks, while trying to
travel to Turkey to study in the
mid-1990s. The aborted trip
landed him in a labor camp for
three years, he says.
He and his wife lined up at a
police station with other Uighurs to have their fingerprints
and blood samples taken. He
says he was asked to read a
newspaper for two minutes
while police recorded his voice,
and to turn his head slowly in
front of a camera.
Later, his family’s passports
were confiscated. After a friend
was detained by police, he says,
he assumed he also would be
taken away. He says he paid officials a bribe of more than
$9,000 to get the passports
back, making up a story that his
daughter had epilepsy requiring
treatment in the U.S. Xinjiang’s
Public Security Bureau, which is
in charge of the region’s police
forces, didn’t respond to a request for comment about the
down any would-be thieves.
“This might seem a little
paranoid, but it’s money,” he
says.
Jason Miller, a hypnotist in
Greenville, S.C., recently began
offering to help people recall
forgotten passwords or find
misplaced storage devices. He
charges one bitcoin plus 5% of
the amount recovered, although
he says that’s negotiable.
James Howells, an IT worker
in Newport, Wales, lost 7,500
bitcoin he mined in 2009 after a
hard drive with his private key
was accidentally thrown away
during an office cleanup. His
story went viral this month as
the value of the hard drive’s
contents rocketed to more than
$100 million. Now he’s attempting to excavate the landfill and
dig through four years’ worth of
trash to find it.
For J. Robert Collins Jr., it’s
all about family togetherness.
Mr. Collins, who launched a
fund to trade cryptocurrencies
this year, gave 16 family members each half of one bitcoin for
Christmas four years ago to educate them about the virtual
currency. Fourteen have since
lost their passkeys.
At this year’s gathering, the
group plans to look for the access codes together as a family
activity. If all are found, it
would result in a $120,000
Christmas bonus, which Mr.
Collins says would then probably be entrusted to one responsible person for safekeeping.
Nathan Murdoch, who had
forgotten about the bitcoin he
bought three years ago, turned
to Dave Bitcoin, a faceless locksmith in the cryptocurrency
world. Initially, he harbored
doubts over Dave Bitcoin’s anonymity and bare-bones website.
Dave Bitcoin is actually four
people who run a company
called Wallet Recovery Services,
which for a 20% cut of the recovered trove try to find a lost
key using high powered computers and algorithms. Typically, clients have a vague notion of their password already,
and send Dave Bitcoin any possible words or characters they
might have used. The founder,
who requested to remain anonymous, said the group is getting
four times as many requests as
a year ago.
On the day of Mr. Murdoch’s
birthday, Dave Bitcoin emailed
saying that his password had
been retrieved.
“Now I’ve done the paper
copies, I’ve done the back ups,“
Mr. Murdoch said. “I won’t
make that same mistake again.”
In Xinjiang, China's government has put the
world's most state-of-the-art surveillance
tools in the hands of security forces.
ly
.
License-plate camera
Used to track vehicles breaking law,
on watch list or from outside Xinjiang
Iris scanner
ID technology used at
some checkpoints.
Location tracker
Mandatory in all
commercial vehicles.
Voice-pattern analyzer
Can identify people by speech patterns.
Smartphone scanner
Searches for encrypted chat
apps and other suspect content.
ID scanner
Used to check
identification cards.
Knife
Buyer identification
information is
marked by laser
on blade.
QR code
Includes ID number and
other personal information
Sources: Government procurement orders; iFlyTek Co.; Meiya Pico Information Co; Darren
Byler, University of Washington; Human Rights Watch; police interviews; interviews with
Uighurs in exile.
THE WALL STREET JOURNAL.
of TV screens showing feeds
from nearby surveillance cameras while recording their passport numbers.
Surveillance cameras loomed
every few hundred feet along
the road into town, blanketed
street corners and kept watch
on patrons of a small noodle
shop near the main mosque.
The proprietress, a member of
the Muslim Hui minority, said
the government ordered all restaurants in the area to install
the devices earlier this year “to
prevent terrorist attacks.”
Days later, as the Journal reporters were driving on a dirt
road in Shanshan county after
being ordered by officials to
leave a nearby town, a police
cruiser materialized seemingly
from nowhere. It raced past,
then skidded to a diagonal stop,
kicking up a cloud of dust and
blocking the reporters’ car. An
SUV pulled up behind. A halfdozen police ordered the reporters out of the car and demanded
their passports.
An officer explained that surveillance cameras had read the
out-of-town license plates and
sent out an alert. “We check every car that’s not from Xinjiang,” he said. The police then
escorted the reporters to the
highway.
At checkpoints further west,
iris and body scanners are
added to the security arsenal.
Darren Byler, an anthropology
researcher at the University of
Washington who spent two years
in Xinjiang studying migration,
says the closest contemporary
parallel can be found in the West
Bank and Gaza Strip, where the
Israeli government has created a
system of checkpoints and biometric surveillance to keep tabs
on Palestinians.
In Erdaoqiao, the neighborhood where the fruit vendor Mr.
Imin lives, small booths known
as “convenience police stations,”
marked by flashing lights atop a
pole, appear every couple of
computer housekeeping.
“I really am kicking myself
for not taking better care of
how I access it,” he says. “Trying to pick it up a year or two
or three later it just seems impossible.”
Transacting in bitcoin requires two keys—one public,
and one private. The paired
strings of letters and numbers
are part of a system that allows
bitcoin to change hands without
any middlemen. The private key
is cumbersome and looks something
like
this:
E9873D79C6D87DC0FB6A5778
633389F4453213303DA61F20B
D67FC233AA33262. Protecting
the private key is paramount—
anyone who accesses it can
transfer or spend the bitcoin,
and transactions can’t be reversed or stopped.
That’s why digital “wallets”—where these keys are
stored—have to be heavily
guarded, typically with extra
passwords. But a lot can go
wrong, and layers of security
have ensnared many rightful
bitcoin owners.
Chainalysis, which tracks the
movement of bitcoins in and
out of wallets world-wide, estimates that 2.8 million to 3.8
million bitcoins are lost—as
much as 23% of the total supply.
Chainalysis counts the roughly 1
million coins believed to belong
to bitcoin’s mysterious founder,
who goes by the name Satoshi
Nakamoto, among the missing.
If true, he, she, or they are now
out more than $17 billion.
Some try to avoid these issues by storing bitcoin with an
exchange or another third party
that acts as a custodian. But
others say such accounts are
vulnerable to hacking.
Some people go analog to
avoid the possibility of being
hacked. Brian Goss, a radiologist in Arizona, stores his keys
on a PIN-protected hardware
device. He also keeps a 24-word
recovery phrase and an extra
password in two separate
“Cryptosteels”—miniature
metal
contraptions
with
stamped tiles, like Scrabble
pieces. He keeps one of them
several states away to slow
no
At a security exposition in
October, an executive of Guangzhou-based CloudWalk Technology Co., which has sold facialrecognition algorithms to police
and identity-verification systems to gas stations in Xinjiang,
called the region the world’s
most heavily guarded place. According to the executive, Jiang
Jun, for every 100,000 people
the police in Xinjiang want to
monitor, they use the same
amount of surveillance equipment that police in other parts
of China would use to monitor
millions.
Authorities in Xinjiang declined to respond to questions
about surveillance. Top party officials from Xinjiang said at a
Communist Party gathering in
Beijing in October that “social
stability and long-term security”
were the local government’s
bottom-line goals.
Chinese and foreign civil-liberty activists say the surveillance in this northwestern corner of China offers a preview of
what is to come nationwide.
“They constantly take lessons
from the high-pressure rule they
apply in Xinjiang and implement
them in the east,” says Zhu
Shengwu, a Chinese humanrights lawyer who has worked
on surveillance cases. “What
happens in Xinjiang has bearing
on the fate of all Chinese people.”
During an October road trip
into Xinjiang along a modern
highway, two Wall Street Journal reporters encountered a succession of checkpoints that
turned the ride into a strange
and tense journey.
At Xingxing Gorge, a windswept pass used centuries ago
by merchants plying the Silk
Road, police inspected incoming
traffic and verified travelers’
identities. The Journal reporters
were ordered out of their car
and asked to explain the purpose of their visit. Drivers,
mostly those who weren’t Han
Chinese, were sent through electronic gateways that scanned
their ID cards and faces.
Farther along, at the entrance to Hami, a city of a halfmillion, police had the Journal
reporters wait in front of a bank
Always Watching
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on
Heavily guarded
Phone checks
Xiamen Meiya Pico Information Co. Ltd. worked with
police in Urumqi to adapt a
hand-held device it sells for
investigating economic crimes
so it can scan smartphones for
terrorism-related content.
A description of the device
that recently was removed
from the company’s website
said it can read the files on
90% of smartphones and check
findings against a police antiterror database.
Near the Xinjiang University campus in Urumqi, police
sat at a wooden table recently,
ordering some people walking
by to hand over their phones.
“You just plug it in and it
shows you what’s on the
phone,” said one officer, brandishing a device similar to the
one on Meiya Pico’s website.
He declined to say what content they were checking for.
One recent afternoon in Korla,
one of Xinjiang’s largest cities,
only a trickle of people passed
through the security checkpoint
at the local bazaar, where vendors stared at darkened hallways
empty of shoppers.
Li Qiang, the Han Chinese
owner of a wine shop, said the
security checks, while necessary for safety, were getting in
the way of commerce. “As
soon as you go out, they check
your ID,” he said.
Surveillance in and around
Kashgar, a city where Han Chinese make up less than 7% of
the population, is even tighter
than in Urumqi. Drivers entering the city are screened intensively. A machine scans
each driver’s face. Police officers inspect the engine and
the trunk. Passengers must get
out and run their bags through
X-ray machines.
In Aksu, a dusty city a fivehour drive east of Kashgar,
knife salesman Jiang Qiankun
says his shop had to pay thousands of dollars for a machine
that turns a customer’s ID
card number, photo, ethnicity
and address into a QR code
that it lasers into the blade of
any knife it sells. “If someone
has a knife, it has to have their
ID card information,” he says.
On the last day the Journal
reporters were in Xinjiang, an
unmarked car trailed them on
a 5 a.m. drive to the Urumqi
airport. During their China
Southern Airlines flight to Beijing, a flight attendant appeared to train a police-style
body camera attached to his
belt on the reporters. Later, as
passengers were disembarking,
the attendant denied filming
them, saying it was common
for airline crew to wear the
cameras as a security measure.
China Southern says the crew
member was an air marshal,
charged with safety on board.
—Fan Wenxin, Jeremy Page,
Kersten Zhang and Eva Dou
contributed to this article.
Pedestrians pass a ‘convenience police station,’ above, in Urumqi. The main gate to the Old City in Uighur-dominated Kashgar, below.
n-
Continued from Page One
up with an “X.” Since then, he
says, every scan of his ID card
sets off an alarm. He isn’t sure
what it signifies, but figures he
is on some kind of government
watch list because he is a Uighur and has had intermittent
run-ins with the police.
He says he is reluctant to
travel for fear of being detained. “They blacklisted me,”
he says. “I can’t go anywhere.”
All across China, authorities
are rolling out new technology
to keep watch over people and
shape their behavior. Controls
on expression have tightened
under President Xi Jinping, and
the state’s vast security web
now includes high-tech equipment to monitor online activity
and even snoop in smartphone
messaging apps.
China’s government has
been on high alert since a surge
in deadly terrorist attacks
around the country in 2014 that
authorities blamed on Xinjiangbased militants inspired by extremist Islamic messages from
abroad. Now officials are putting the world’s most state-ofthe-art tools in the hands of a
ramped-up security force to
create a system of social control in Xinjiang—one that falls
heaviest on Uighurs.
GIULIA MARCHI FOR THE WALL STREET JOURNAL (2)
CHINA
bribery.
“The day we left, I was filled
with anxiety,” he says. “I worried what would happen if we
were stopped going through security at the Urumqi airport, or
going through border control in
Beijing.”
He and his family made it to
Virginia, where they have applied for political asylum.
Chinese authorities use forms
to collect personal information
from Uighurs. One form reviewed by the Journal asks
about respondents’ prayer habits and if they have contacts
abroad. There are sections for
officials to rate “persons of interest” on a six-point scale and
check boxes on whether they are
“safe,” “average” or “unsafe.”
‘I am really kicking
myself for not taking
better care,’ says one
bitcoin owner.
The quandary was featured
on a recent episode of “The Big
Bang Theory,” a CBS sitcom.
Leonard, Raj and Howard, three
main characters, go on a wildgoose chase, trying to find
thousands of dollars worth of
bitcoin they mined seven years
ago.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
* *
NY
Wednesday, December 20, 2017 | A14A
We manufacture prescription opioids.
How could we not help fight the
prescription and illicit opioid abuse crisis?
co Fo
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ly
.
Two doctors founded a company in 1892 now known as Purdue Pharma.
Continuing the strong heritage of a research-driven, science-based
company, another doctor is currently at the helm as CEO. We’re the
pharmaceutical company that manufactures OxyContin®. Patients’ needs
and safety have guided our steps. It’s what led us to research and develop
medications to help patients. Today, it’s what has spurred us to redouble
our efforts in the fight against the prescription and illicit opioid abuse
crisis. It’s why we’re taking action.
We support recommendations in The President’s Commission on
Combating Drug Addiction and the Opioid Crisis and the FDA’s Opioid
Action Plan. There are too many prescription opioid pills in people’s
medicine cabinets. We support initiatives to limit the length of first opioid
prescriptions. Reducing the number of excess tablets won’t end the
epidemic, but we believe it will help rein in the problem. We believe doctors
should check their state Prescription Drug Monitoring Program (PDMP)
databases before writing an opioid prescription, to guard against doctorshopping by those trying to game the system. Information sharing between
state databases must improve.
no
n-
Our industry and our company have and will continue to take meaningful
action to reduce opioid abuse. We focused our talented research scientists
and applied our innovative thinking to making opioids with abuse-deterrent
properties, making them harder to crush and, therefore, harder to be
abused by snorting or injection. With this investment, we pioneered
the pharmaceutical industry’s movement toward developing opioids
with abuse-deterrent properties when we were the first to receive FDA
approval.1 Developing new formulations is risky and there are never any
guarantees, but we did it anyway. Our company also took the initiative
to distribute the CDC Guideline for Prescribing Opioids to thousands of
prescribers and pharmacists shortly after it was released.
As we continue to fight the prescription opioid and illicit substance abuse
crisis, we are applying our resources and our best scientific minds to
discover and develop new, non-opioid pain medicines for patients.
No one solution will end the crisis, but multiple, overlapping efforts will.
We want everyone engaged to know you have a partner in Purdue Pharma.
This is our fight, too.
www.purduepharma.com
1
Opioids with abuse-deterrent properties are not abuse-proof and don’t prevent addiction,
but they are part of a multifaceted approach to addressing the prescription opioid abuse crisis.
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.
A14B | Wednesday, December 20, 2017
NY
May 22, 2018
|
Four Seasons Hotel
|
THE WALL STREET JOURNAL.
* *
Washington, D.C.
How innovation is revolutionizing
the business of health
ly
.
This spring, the editors of The Wall Street Journal will convene inluential business leaders, policy makers and experts
from across the health and health-care industries to focus on the innovations transforming this critical sector of the
economy. These participants will join an audience of senior executives and entrepreneurs, including those from the
worlds of inance, science and regulation.
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Through highly interactive interviews, the editors will cover issues of key importance in 2018, from the technologies
and advanced analytics changing the study of the human genome to new business models affecting health care.
SPEAKERS
George M. Church, Ph.D.
Professor of Genetics,
Harvard Medical School
Director,
PersonalGenomes.org
Stephanie Domas, P.E.,
C.E.H.
Lead Security Engineer,
Battelle
Rear Adm. Anne Schuchat,
M.D.
Principal Deputy Director,
Centers for Disease Control
and Prevention
Eric Topol, M.D.
Founder and Director,
Scripps Translational
Science Institute, Professor
of Molecular Medicine and
Executive Vice President,
The Scripps Research Institute
Anthony S. Fauci, M.D.
Sarah E. Wakeman, M.D.
Director, National Institute of
Allergy and Infectious Diseases,
The National Institutes of Health
Medical Director, Substance
Use Disorders Initiative,
Massachusetts General Hospital
no
n-
Assistant Professor of Medicine,
Harvard Medical School
Richard J. Gilillan, M.D
Feng Zhang, Ph.D.
CEO,
Trinity Health
Core Institute Member,
Broad Institute of MIT
and Harvard
Thomas McLellan, Ph.D.
Daphne Zohar
Co-Founder and Scientiic Director
(19922015),
Treatment Research Institute
Co-Founder and CEO,
PureTech Health plc.
Deputy Director and Senior Scientist
(20092011),
White House Ofice of National Drug
Control Policy
David N. Osser, M.D.
Associate Professor of Psychiatry,
Harvard Medical School
Attending Psychiatrist, Domiciliary
Treatment Program for
Homeless Veterans,
Veterans Affairs Boston
Healthcare System
Request your invitation: healthforum.wsj.com
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6206
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A14C
NY
* *
GREATER NEW YORK
Trenton Weighs Nuclear Subsidies
Move follows threat
of two plant closures;
cost would be borne
by utility customers
rushed through the legislature
during a lame duck session, and
would undermine the state’s
progress toward increased reliance on renewable energy and
would be costly to taxpayers.
Lawmakers are scheduled to
hold a joint-committee hearing
Wednesday on the bill, which
was introduced last week. Supporters hope the legislation will
be passed before Republican
Gov. Chris Christie leaves office
in January.
Sen. Jeff Van Drew, a Democrat, said the subsidies are necessary to preserve “desperately
needed, decent paying, good
jobs” in southern New Jersey.
He said nuclear power is critical to maintaining energy diversity in the state.
“If the nuclear plants go
down, in the long run the price
of electricity is going to go up,”
said Mr. Van Drew, who represents parts of Atlantic, Cape
BY KATE KING
New Jersey lawmakers are
considering subsidies, paid by
customers, to prop up the nuclear-power industry after the
state’s largest operator threatened to shut two plants.
Public Service Enterprise
Group Inc., which owns and operates two nuclear power
plants in the state’s southern
Salem County, said low naturalgas prices will force the plants’
closure unless market prices
change or ratepayers subsidize
operations.
Environmental and ratepayer
groups say the proposed subsidies are being unnecessarily
May and Cumberland counties.
Mr. Christie, who was prevented by term limits from
running for re-election, indicated earlier this month that
he was open to subsidies. “I
think having nuclear power in
the state is an important thing
to have,” he said. Mr. Christie’s
successor, Democrat Phil Murphy, said he supports keeping
the plants open and the associated jobs intact, but wouldn’t
want that goal to come at the
expense of the state’s renewable-energy efforts.
Nuclear-plant operators have
struggled to remain profitable
in recent years as rising natural-gas supplies have sent
wholesale electricity prices
plummeting. Several plants in
New York, California and Michigan are scheduled to close by
2025 due to competition from
cheaper electricity sources.
New York Gov. Andrew
Cuomo’s administration is moving forward with plans to subsidize some of the state’s struggling nuclear plants. In South
Carolina, Scana Corp. said in
August that it was abandoning
a project to build two nuclear
reactors. And in Illinois, lawmakers voted last year to allow
operator Exelon Corp. to collect
up to $235 million annually
from customers to keep two
plants open.
The ratepayer subsidy currently under consideration in
New Jersey would cost at least
$300 million a year, according
to an analysis by Stefanie
Brand, director of the state’s
Division of Rate Counsel. At
that cost, the average residential customer bill would increase by about $41 a year, and
for some large business customers it could be as much as
$1 million a year, Ms. Brand
said. “I think it’s ridiculous,
frankly,” Ms. Brand said.
A spokesman for Public Service Enterprise Group said it
calculated that the average residential-bill increase would be
closer to $31 a year.
In testimony before lawmakers in Trenton earlier this
month, Ralph Izzo, chief executive of Public Service Enterprise Group, said the company’s
nuclear power plants are currently profitable but the utility
will be unable to cover their
costs within two years unless
market prices change.
“I am here to tell you that
those plants are in trouble and
that, if nothing changes, I will
close them,” Mr. Izzo said.
Sierra Club’s New Jersey director, Jeff Tittel, said subsidizing the nuclear-power industry
would be akin to “throwing a
wet blanket” on the state’s efforts to rely more on renewable
energy.
Islanders Poised to Return to Nassau County
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BRUCE BENNETT/GETTY IMAGES
The Islanders, who moved to Brooklyn’s Barclays Center two years ago, may be returning to Nassau County, their home for 43 years.
represents. “I am excited to finally welcome the Islanders
home to Nassau County,” said
Laura Curran, Nassau County’s
Democratic incoming county
executive.
Sen. Todd Kaminsky, a Nassau County Democrat, said the
new stadium will “make us a
more economically viable place
and a more desirable place to
live.”
Taking the team from the
Barclays Center in Brooklyn is a
n-
The New York Islanders are
expected to announce their return to Nassau County on
Wednesday, two years after
moving to Brooklyn, according
to people familiar with the
matter, a move lawmakers hope
will invigorate the area.
Gov. Andrew Cuomo is planning an event Wednesday
where an announcement on a
new Nassau County stadium is
expected, these people said. The
plans could still change at the
last minute, they added. The
project cost and time frame are
expected to be announced
Wednesday. Mr. Cuomo’s office
declined to comment Tuesday.
Mr. Cuomo’s administration
in July solicited proposals to
redevelop the 36-acre piece of
property, Belmont Park, as an
entertainment, sports, hospitality and retail destination. Belmont Park includes the famed
horse-racing track that hosts
the Belmont Stakes.
In addition to the National
Hockey League team, the New
York City Football Club submitted a bid. The soccer team currently plays in Yankee Stadium.
Neither team responded to requests for comment.
The Islanders left Nassau
County when their lease was up
with the Nassau Coliseum and
the team owner wanted a more
state-of-the-art facility.
The move, though not yet
official, is being cheered by
Long Island lawmakers who
had questioned why the team
had moved outside the area it
potential blow to Mr. Cuomo’s
rival and fellow Democrat, New
York City Mayor Bill de Blasio.
A spokeswoman for the mayor
said in an email that the
mayor’s office wasn’t concerned that the Islanders’ departure would hurt Brooklyn.
“We have every confidence
that the neighborhoods around
the Barclays Center will see
more growth and activity in the
years ahead, not less,” she said.
Analysts raised questions
about how the new stadium
could compete with the island’s other arena, the Nassau
Coliseum, where the Islanders
played for 43 years. The Coliseum is a longtime cultural
draw on Long Island for concerts.
Oak View Group, whose investors include James Dolan’s
Madison Square Garden, and
Sterling Project Development,
run by the family that owns the
Mets, are partnering with the
Islanders on the development.
Neither company responded to
requests for comment.
Charlie LaRosa Jr., a 22year-old Islip resident, said the
Barclays Center was difficult
for fans to get to and never felt
like home. “Building an arena
around a hockey team is way
more important, than squeezing a hockey team into a basketball and concert arena,” he
said. “And, Long Island is our
home.”
A Manhattan man was fatally shot early Tuesday morning outside a bar
near Times Square, police
said, in an echo of the neighborhood’s more violent days a
generation or more ago.
Officers responded to a 911
call just after 3:50 a.m., police
said. They arrived at Seventh
Avenue, between West 48th
and 49th streets, where they
found a man with a gunshot
wound to his head outside the
Tonic Times Square bar.
The victim was 33 years
old and lived on the Upper
West Side, police said. He was
transported to Bellevue Hospital, where he was pronounced dead, police said.
While Times Square once
was considered seedy and
dangerous, fatal shootings in
the area are now rare.
In 2016, there were two
murders in the two Midtown
Manhattan police precincts
that include parts of Times
Square, data show, down from
24 in 1990.
The shooting is an “aberration,” as violent crime in
Times Square has plummeted,
said Tim Tompkins, president
of the Times Square Alliance,
a local business advocacy
group. “Of course any death is
a tragedy, and our hearts go
out to the victim’s family,”
Mr. Tompkins added in a
statement.
Tonic advertises itself as
“The World’s Neighborhood
Sports Bar” and says it has
“conveniences of a larger establishment with the comforts
of your local bar.”
According to the preliminary
investigation, the shooting took
place outside the bar, and police don’t know of any dispute
inside the establishment, a lawenforcement official said.
Police closed the bustling
area where the bar is located
for hours after the shooting.
Sk Habibur Rahman, who
works at a gift store near the
bar, said while his store normally opens at 8 a.m., it
didn’t open until after 2 p.m.
Tuesday because the police
cordoned off the area for
their investigation.
“I’ve never seen this before,” he said.
THEODORE PARISIENNE
no
Man Is Killed Near Times Square
BY CORINNE RAMEY
BY CEZARY PODKUL
The New York City Council
approved legislation Tuesday that would make it easier
for lower-income renters to
find apartments that match
their budgets.
The measure would require
landlords who get tax breaks
and other benefits in exchange
for renting apartments at below-market rates to register
those units annually with the
city’s Department of Housing,
Preservation and Development.
The department would then
be required to list those units
online and help tenants find
housing by matching them up
with units that meet their incomes.
Applicants also would be
able to track the progress of
their applications and see
where they are on waiting lists
to rent units, which are
awarded by lottery. By 2021,
residents also would be able to
verify with the city that they
are being charged a legal rent.
The legislation is meant to
make the application and
search process more transparent and efficient, said the bill’s
lead sponsor, Councilman Benjamin Kallos. “I want to make
ly
.
BY KATE KING
AND MIKE VILENSKY
Bill to Help
Renters
Find Units
Is Passed
Police blocked off an area near Times Square after a man was
found outside a bar early Tuesday with a fatal gunshot wound.
The measure would
help the city keep
better track of incomerestricted units.
it
more
like
StreetEasy or Zillow,” Mr. Kallos
said.
The city already runs a
website that helps tenants find
income-restricted
apartments, NYC Housing Connect,
but Mr. Kallos said it is “incredibly broken” because it
doesn’t do enough to match
tenants with available units.
The Department of Housing,
Preservation and Development
said in a statement that it has
“long planned to upgrade its
housing lottery system” and
will “greatly expand” the capabilities of Housing Connect to
“achieve many of the same
goals” sought by Mr. Kallos’s
legislation.
A spokeswoman for Mayor
Bill de Blasio declined to say
whether he would sign the bill.
The Real Estate Board of New
York, which represents property owners, opposes the legislation.
While the bill would help
the city keep better track of
these income-restricted units,
the measure would do little to
help enforce rent limits in the
broader universe of taxpayersubsidized rental housing.
The city gives out two popular tax breaks—known as 421a and J-51—which together
cost more than $1.5 billion a
year and require building owners to limit rent increases on
all apartments, not just those
that are income-restricted.
Mr. Kallos originally hoped
to apply his bill’s annual rent
registration requirements to
these and other rent-regulated
units. However, after opposition from the city housing department, he agreed to slim
down the requirement to cover
just income-restricted units.
—Mara Gay
contributed to this article.
OYSTER PERPETUAL
DATEJUST 36
rolex
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are ® trademarks.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A14D | Wednesday, December 20, 2017
NY
* ***
THE WALL STREET JOURNAL.
GREATER NEW YORK
Good Luck Spending Bitcoin
BY MARA GAY
last week, I told clerk and
managing partner Ben Tseytlin about my windfall, now
worth $1,800. “You could buy
a gold coin with that,” he said.
I wouldn’t be the first to
swap Bitcoin for gold.
“We’ve done more Bitcoin
business in the past two
weeks than we have all year,”
says Eric Gozenput, another
managing partner at Bullion
Exchange. “It’s gone up
2,000%, so people are moving
it into something underperforming.”
Most business owners who
accept Bitcoin, like Mr. Gozenput, are Bitcoin enthusiasts.
“It was to show support for
cryptocurrencies,” says Tom
Capo, owner of KPODJ Lighting & DJ Gear in Hopatcong,
N.J., of his decision to accept
Bitcoin.
Only a few customers have
paid in Bitcoin, he says. “But if
1% of our transactions in 2018
are cryptocurrencies, I think it
would be really cool.”
My best bet looked to be
Astro West, an Upper West
Side shop offering minerals,
meteorites and fossils. Who
wouldn’t want a piece of the
asteroid belt for Christmas?
Gemologist Filip Klein,
decked out in a three-piece
suit and long braid, showed
me mineral formations in a
big display case, including a
$600 azurite, a gigantic
$45,000 amethyst and a spectacular $500,000 tourmaline.
He also shared his pet Bitcoin
theory. Some say the currency
was invented by an artificial
intelligence.
“By getting us to build
computers and do more Bitcoin mining, we’re building
the body of the artificial intelligence,” he said. “It’s terrifying.”
Astro West owner Marc
Tanjeloff declared himself a
Bitcoin skeptic. Like many retailers, he only accepts Bitcoin
online, using a service that
immediately converts it to U.S.
dollars. “Cash is still king,” he
says. “And wire transfers are
better.”
I never managed to spend
my Bitcoin, but no matter—
my $100 investment just hit
$2,360. And if I hang on, Mr.
Chen tells me, it is likely to be
worth 50 times that.
Meteorites for everybody!
co Fo
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tech shop xCubicle who sold
me my original Bitcoin. During
high-volume periods, processing speeds slow down, while
transaction fees climb, making
small, in-store purchases impractical.
BitPay is among the most
popular processing services
that accept Bitcoin payments
for retailers and convert it
into U.S. currency. The fee is
1%, compared with 2-3% typically charged by credit-card
companies. However, the Bitcoin system itself charges an
additional fee for transactions.
During low-volume periods,
the fee often is just a few
cents per transaction. But in
recent weeks, when supply has
outstripped demand, it can
cost $10 or more, according to
BitPay. In many cases, the customer pays this in the form of
a transaction charge tacked on
by his wallet provider.
Still, there are a few area
outfits that happily accept Bitcoin. Bullion Exchanges, a precious-metals retailer in Manhattan’s Diamond District,
offers a small discount to
those who pay in Bitcoin
rather than a credit card.
Visiting the tiny storefront
DES MOINES, Iowa—New
York City Mayor Bill de Blasio
says he isn’t running for president, but can fix the Democratic Party with his liberal
ideas.
“Leave no stone unturned.
Leave no seat uncontested,” he
said at the holiday party for
Progress Iowa, a liberal group
that has hosted Vermont Sen.
Bernie Sanders (I., Vt.) and
prominent Democrats in recent
years. “We are at the beginning
of a progressive era.”
Mr. de Blasio said Democrats suffered losses in 2016
because they strayed from the
core liberal values of the Democratic base, and favored corporate donors over small donations.
“We were so desirous of the
money that we created a vision
and a message that we could
not live with,” he said during a
nearly 40-minute speech.
The mayor’s trip spurred
speculation that he is considering a presidential bid. When he
arrived in Des Moines, however, he was quickly confronted
with more pedestrian matters.
At his hotel, the Des Moines
Marriott, the mayor arrived to
find that New York City’s police union had followed him to
Iowa with a mobile billboard
that said Mr. de Blasio had
skimped on the union’s contract. “That’s not progressive!”
one sign read.
anne.kadet@wsj.com
In the Des Moines Register,
New York’s Transport Workers
Union took out a full-page ad
excoriating Mr. de Blasio as
“phony as a $3 bill.” The union
is angry with the mayor because of his support of a law
that makes it easier for bus
drivers to face criminal charges
for striking pedestrians, and
for his efforts to destroy the
city’s horse-carriage industry.
The correction officers’
union, meanwhile, took shots
at the mayor from afar. “At a
time when assaults on correction officers are rising, while
punishments to assaultive inmates are declining, Mayor Bill
de Blasio has left New York
City for Iowa today to begin
his political pursuit of winning
the presidency,” Elias Husamudeen, president of the Correction Officers’ Benevolent Association, said in a statement
emailed to reporters Tuesday.
Later in the day, during a
15-minute news conference at
the Des Moines Marriott, Mr.
de Blasio dismissed the union
protests, saying they were protests were “nothing new.”
“Doesn’t really much make
an impact on me,” he said.
Mr. de Blasio said that while
running New York City was his
primary job, he planned to help
Democrats across the country
as he saw fit. He said his liberal vision was succeeding.
“Honestly that vision is increasingly taking over the
Democratic Party,” he said.
ly
.
JOHN S. DYKES
When Bitcoin began its
crazy run-up
this month, I
was pleased to
discover the
$100 investment I made on a
lark in 2014 suddenly was
worth $1,200. Free money!
And just in time for some holiday shopping.
But it’s harder to spend Bitcoin in New York City than
one might expect.
Determined to shop local
with my little windfall, I tried
a gift shop, grocery, pet store
and kitchen-supply joint. None
accepted Bitcoin, and the
clerks looked a little creeped
out when I asked.
I found several prospects
on Coinmap, an online directory of businesses that accept
Bitcoin. But if these shops
took Bitcoin in the past, they
sure don’t now—most were
out of business.
A more recent listing
looked promising: something
called “the Bitcoin Store” in
lower Manhattan. When I
clicked on its website, however, I was startled to encounter a wide selection of drugs
including XTC, codeine syrup
and “High Grade Premium
Quality Cocaine.”
“Well,” said a friend,
“there’s your Christmas shopping!”
Experts say it’s no surprise
most stores still refuse Bitcoin.
Amine Rahal, founder of
digital-marketing firm IronMonk Solutions, tells clients
that they can increase sales by
accepting Bitcoin. “A lot of
people these days have more
Bitcoin than they have dollars,” he notes.
But while it’s as simple as
accepting PayPal—thanks to
Bitcoin payment-processing
services, shoppers can simply
select a Bitcoin-payment option and send money from
their online Bitcoin wallet—
“most small businesses are super busy, and when it comes
to new technology they are intimidated,” he says.
Bitcoin has drawbacks, says
Patrick Chen, the founder of
Mayor, in Iowa,
Pushes His Vision
CHARLIE NEIBERGALL/ASSOCIATED PRESS
METRO MONEY | By Anne Kadet
Mayor Bill de Blasio in Iowa on Tuesday with Andy McGuire, a
Democrat who is running for governor of Iowa.
GREATER NEW YORK WATCH
Security Tightens
For the Holidays
BORN TO DARE AND BLACK BAY ARE ® TRADEMARKS. NEW YORK.
TUDOR
BLACK BAY
BRONZE
NEW JERSEY
Inmate Gets 29 Years
For Killing Cellmate
An inmate who fatally beat
and choked his cellmate at a
county jail has been sentenced
to 29 years in state prison.
Rahdi Richardson had
pleaded guilty to aggravated
manslaughter in the 2013 death
of 27-year-old Desmond Sanders
at the Essex County jail. The
plea came during the first day
of jury selection for Mr. Richardson’s trial.
The 34-year-old Newark man
had tried unsuccessfully to withdraw his plea earlier this year.
The sentence he received will
run concurrently with a 15-year
term he is serving on armed
robbery charges.
Mr. Sanders was found dead
in his cell. He was being held in
connection with the June 2013
armed robbery to which Mr.
Richardson also pleaded guilty.
—Associated Press.
IMAGINE THE BEST
SLEEP OF YOUR LIFE...
EVERY NIGHT
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NEW YORK, NY 10013, 212-219-8022
MADISON | 1100 MADISON AVE,
NEW YORK, NY 10028, 212-628-8022
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NEW YORK, NY 10022, 212-486-8022
HAS T E N S . COM
CONNECTICUT
Scottish Titles Await
Residents of Town
Residents of the rural Connecticut town of Scotland are becoming lords and ladies.
Highland Titles said Tuesday
that it is gifting all 1,694 residents
1 square foot of land on its nature reserve in Glencoe Wood,
Scotland. They will also get a
courtesy title of Lord or Lady of
Glencoe, along with instructions
on how to visit their plot and
other documents.
The Scottish land preservation
company sells forest land ranging
from a square foot to 1,000
square feet so they can’t be developed.
Scotland First Selectman Dan
Syme says the eastern Connecticut town was settled by a Scotsman named Isaac Magoon in
1700 and continues to celebrate
that heritage by hosting a Highland Festival each year.
—Associated Press
©2017 CHANEL®, Inc.
no
Gov. Andrew Cuomo on
Tuesday announced the deployment of additional personnel
from the New York State Police
and the National Guard at key
transportation points throughout the holidays.
Officials said radiation detectors and bomb-sniffing dogs
will also be used.
Mr. Cuomo said the steppedup security presence isn’t based
on any credible threats or information suggesting imminent
danger, and that the preparations are being done out of an
abundance of caution. The governor did make note of recent
terror plots, including a subway
bombing this month.
Port Authority and Metropolitan Transportation Authority
police will also increase their
numbers as part of the effort.
—Associated Press
n-
NEW YORK
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.
WORK & FAMILY | By Sue Shellenbarger
HarassmentTraining
GetsaRevamp
HR experts say recent scandals suggest that programs to prevent
sexual harassment have focused too much on the letter of the law
n-
dated a co-worker.
Ms. Barros, Pyrotek’s
human-resources director, has shifted her emphasis from simply explaining federal
antidiscrimination laws
and rules to fostering a
workplace culture of
tolerance, acceptance
and civility, so people
can talk freely to each
other about their behavior. “If I offend somebody, I want them to
feel comfortable coming
Since the
to me” and discussing it
openly, she says.
Vox Media will require all 950 of its employees to
take an online anti-harassment
training program by Everfi, a Washington, D.C., education technology
company, starting in January, says
Erin Bakst, vice president of people
no
TERI BARROS recently rewrote
the sexual-harassment training program she uses at her company to
add some colorful examples. She
didn’t have to look very far.
She ticks off several big names in
entertainment, politics and media
whose alleged sexual misconduct
was an open secret among their coworkers for years. The lesson, she
tells her colleagues at Pyrotek, a
Spokane, Wash., manufacturing and
engineering company: If you know
that a co-worker is guilty of sexual
harassment, you need to speak up,
no matter how powerful the perp.
The wave of scandals has
prompted some companies to revise their sexual-harassment training programs now that it has become clear that they’re falling
short. Some are extending mandatory training beyond management
to employees at all levels, and increasing the frequency. Others are
urging employees in internal communiqués and blog posts to speak
up if they witness bad behavior.
And many are broadening the focus
of their training programs, beyond
following the letter of the law to
promoting more respectful behavior in general.
The allegations have shown how
ignoring this problem can ruin the
lives of women and men affected
by it. Careers are at stake. So, too,
are companies’ reputations.
This climate is especially tricky,
given how common office romance
can be. A 2016 survey of 3,411 fulltime workers across the U.S. by the
employment site CareerBuilder
found 41% of respondents had
co Fo
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.
LIFE&ARTS
Sexual harassment
training has been a fixture among U.S. employers since the 1990s,
in response to two Supreme Court rulings
and federal guidelines
on enforcing antidiscrimination laws. Several states, including
California and Connecticut, have since passed
laws requiring training.
Training practices
drew fire in 2016 from
a bipartisan Equal Em1980s, many companies have used training videos
ployment Opportunity
to address sexual harassment.
Commission task force,
which faulted employand culture. An outside law firm is
ers for focusing too narrowly on
developing an additional training
following the letter of the law to
program for about 200 managers,
avoid getting sued. The report
she says. Vox Media announced the
called for more emphasis on fosterdismissal of an executive for inaping a respectful workplace culture,
propriate behavior in October.
and more training to encourage by-
standers to report bad behavior
when they see it.
The recent onslaught of sexualharassment allegations suggests
the criticisms were on target.
“Some employers thought they
didn’t have a problem because nobody had complained,” says Phyllis
Hartman, a Pittsburgh-area-based
adviser on ethics to the Society for
Human Resource Management.
“Now we all know that doesn’t
mean you don’t have a problem.”
Bystanders often keep quiet
about offensive behavior by powerful figures because they assume
their employer accepts or even approves of it and fear personal repercussions if they report it.
Sharon Sellers, president of SLS
Consulting LLC in Santee, S.C., recently was asked to investigate allegations against a manager at a
client company. He was accused of
favoring a subordinate while dating
her, then firing her after the relationship soured. When Ms. Sellers
questioned the couple’s co-workers,
the response was, “Yeah, I knew
that was going on.” But they feared
that speaking up would jeopardize
their jobs, she says.
Corporate trainers say rank-andfile employees who tended to sit silently through anti-harassment
training in the past are raising
more questions. Pittsburgh HR consultant Gillian Florentine coached a
salesman in a recent session who
brought up an awkward situation
he had witnessed: A male coworker had cornered a female colleague in the hallway, leaning in as
Please see TRAINING page A17
FILM REVIEW | By Joe Morgenstern
OF RAGS AND DRAMATIC RICHES
FOCUS FEATURES (2)
BY JOE MORGENSTERN
Daniel Day-Lewis and Vicky Krieps in ‘Phantom Thread,’ above; Lesley Manville, right.
THE HAUNTED ARTIST portrayed by Daniel
Day-Lewis in “Phantom Thread” creates
dresses for wealthy women. In the process, he
makes dressing, rather than undressing, an
erotic ritual. Reynolds Woodcock is the
reigning high-fashion designer in
1950s London, and Paul Thomas
Anderson’s hypnotically beautiful film revels in the workings
of the House of Woodcock, the
fabled realm where Reynolds
holds sway over a devoted
staff of artisans and seamstresses. (Lesley Manville
smoulders fiercely as his sister,
Cyril, who oversees the business
and his role in it.) Yet the story focuses most powerfully on the great
man at home, where his rigidly structured life
is under dire threat of transformation by love.
The last time Mr. Anderson worked at the
peak of his powers was a decade ago, when he
did “There Will Be Blood,” which starred Mr.
Day-Lewis as a monstrously coldhearted oil tycoon. (The actor claims his latest appearance
will be his last; say it ain’t so, Daniel.) This is a
new pinnacle, not icy but inviting, and a new
departure, a romance that feels different from
anything the filmmaker has done before. The
rhythms are unhurried, the drama pinpoint-intense, the style intimate, the wit Hitchcockperverse. And the look of it is gorgeously lush,
with shadows out of Douglas Sirk. (There is no
cinematography credit, which suggests that
Mr. Anderson shot the film himself, with technical assistance; Michael Bauman is listed as
lighting cameraman.)
All’s right with Reynolds’s hermetic world when the movie begins, or almost all; tension at
breakfast with a beautiful
woman in his life threatens to
build until he says, with a
calmness devoid of feeling, “I
cannot begin my day with a
confrontation.” That’s it, she’s
out of his life, Reynolds is ready
to meet his first client of the day
and an orchestra sneaks in the
strains of “My Foolish Heart.” (Jonny
Greenwood’s score is eclectic and exquisite.)
But where in his shrink-wrapped heart could
foolishness ever gain a foothold? A subsequent
breakfast encounter, at a hotel restaurant near
his country house, tells that part of the tale,
and illuminates Mr. Anderson’s technique.
At its simplest, breakfast scene No. 2 is
about Reynolds being smitten by a charming
waitress. (Her name is Alma, she’s played by
Vicky Krieps, and charming doesn’t begin to
Please see PHANTOM page A17
ILLUSTRATION BY TAYLOR CALLERY; WSJ PHOTO ILLUSTRATION; PHOTOS: INTEGRATED VIDEO SERVICES, INC.; ISTOCK
Wednesday, December 20, 2017 | A15
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THE WALL STREET JOURNAL.
A16 | Wednesday, December 20, 2017
LIFE & ARTS
MY RIDE | By A.J. Baime
MATT NAGER FOR THE WALL STREET JOURNAL
How a 1960 Cadillac
Lets a Racer Slow Down
JR Hildebrand of Boulder, Colo.,
29, an IndyCar driver, on his 1960
Cadillac Coupe de Ville, as told to
A.J. Baime.
Because I race cars, people have
this expectation that I am supposed to always drive fast. In reality, I have always loved the idea of
having a car that would force me
to slow down, to live in the moment in a different way than one
does on a racetrack.
In 2012, I started searching
Craigslist and eBay. I am a General
Motors guy, and I became attached
to the idea of getting a giant, old,
two-door Cadillac. The 1959 is the
iconic Cadillac with the giant
rocket tail fins. But for me, the
1960 was the one—ever so slightly
more understated.
I found Rosie in Palo Alto and
negotiated the price down to
about $9,500. The owner had
named the car because of its color
and in a way it felt like picking up
a rescue dog. I was not going to
change the name.
Over the next few years, I kept
the car in California and had the
interior and the suspension redone. The car had nasty vibration
co Fo
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.
IndyCar driver JR Hildebrand with his 1960 Cadillac Coupe de Ville near his
home in Boulder, Colo. Mr. Hildebrand’s first major journey in this car? To his
own wedding, in 2016. The car’s steering wheel and tail fins, below.
at highway speed, so we spent a
lot of time adjusting things.
Last year, I shipped Rosie to my
home in Colorado. My fiancée at
the time, Kristin, and I were planning our wedding at Devil’s Thumb
Ranch in Tabernash, Colo. The car
showed up the week before, and
ADVERTISEMENT
Showroom
there were still kinks to work out. A
quarter of the gauges worked, and
it had the original 390 V-8 engine.
With my father sitting shotgun,
we set out in my first major journey in Rosie, over a huge mountain pass bound for Tabernash. I
thought, wow, there is a lot that
could go wrong here. The steering
wheel is more of a direction suggester, hardly a precision instrument. We made the journey just
fine.
Kristin and I are both fans of
the nostalgic, so having this beautiful, not-quite-perfect Coupe de
Ville as the focal-point prop of our
wedding was such a cool experience. That solidifies why I will
never sell this car or change its
color. She will always be our Rosie.
Contact A.J. Baime at
Facebook.com/ajbaime
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THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A17
LIFE & ARTS
FILM
The Great Actor’s
Retirement Guide
FROM TOP: FOCUS FEATURES; EVERETT COLLECTION (3)
DANIEL DAY-LEWIS has made the
unusual move of formally retiring
from acting at the peak of his
powers. The 60-year-old actor announced earlier this year that his
film role as a dressmaker in Paul
Thomas Anderson’s “Phantom
Thread” would be his last.
It looks like he’s going out in
style: Metacritic has graded the
film as 94 out of a possible 100,
meaning “universal acclaim.” Mr.
Day-Lewis has already received a
Golden Globe nomination for best
actor in a drama, and oddsmakers
say his sixth Oscar nomination
isn’t far behind.
That means “Phantom Thread”
Daniel Day-Lewis has said ‘Phantom Thread’ will be his last film.
The Mooseport Doomsday Scenario
she played in 1945’s modern tragedy “Mildred
Pierce” into an Oscar. She walked away after
the unintentional comedy of “Trog,” a 1970 horror movie noteworthy mostly for being named
one of the best bad movies ever in “The Official Razzie Movie Guide.”
Art Carney beat out Jack Nicholson, Dustin
Hoffman, Albert Finney and Al Pacino to win
the best actor Oscar for 1974’s “Harry and
Tonto.” But he was lost among the many bigname cameos in 1993’s “The Last Action Hero,”
an Arnold Schwarzenegger vehicle that ended
up bombing.
Continued from page A15
describe the rich complexity of the performance.) Another filmmaker might have
staged the scene briskly, as a flirtation leading to some sexier destination. In Mr. Anderson’s hands it’s a highly charged meeting of
gazes, minds and motives, the beginning of
an obsessive love affair with more layers than
a mille-feuille. And, what do you know, it’s
also about ordering breakfast—a welsh rarebit with a poached egg on top, not too runny,
plus a list of other goodies that Reynolds requests with amusing gravity and Alma recognizes as a litany of seduction.
Later on, after she has become his model
and muse, we’re treated to scenes about asparagus and mushrooms that are really
about, among other things, asparagus and
mushrooms. But this is not a film for foodies,
any more than it’s a documentary about
haute couture—although it evokes, in fascinating detail, such designers of the period as
Balenciaga and Hardy Amies. (Mark Bridges
designed the film’s elegant costumes.) Every
scene between Reynolds and Alma is a study
in how they seduce each other, annoy and delight each other, make war and peace with
each other, and seek ways, however bizarre,
to keep their love alive.
The intensity of these scenes is so extraordinary that I kept wondering how they did
it—not just Mr. Day-Lewis, the most intense
actor of our time, but Ms. Krieps, an actress
from Luxembourg in her first major Englishlanguage role, and Mr. Anderson himself, the
mesmerist behind the mesmerizing images.
What came to mind was something I overheard decades ago when watching Jackie
Joyner-Kersee, the Olympic champion, train in
Los Angeles. She was off her pace in the 200meter dash and struggling to run faster.
“Don’t try to be fast,” her husband and coach,
Bob Kersee, called to her. “Do the things that
make you fast.” Intensity doesn’t come from a
filmmaker or an actor trying to be intense. It’s
the consequence of visual and emotional focus—the camera’s unwavering concentration
on Alma’s facial expressions, Reynolds ordering his rarebit as if it, and the egg on it, mattered more than anything else in the universe.
As the tightly focused center of Alma’s—
and Mr. Anderson’s—attention, Reynolds is
closed off to spontaneous feelings until he
isn’t, or is less so; everything before her
was a near-life experience. But why is Reynolds haunted? That’s the key to the phantom component of the story. It’s also the
window to larger dimensions of the film,
which is set in the middle of the 20th century but speaks eloquently to contemporary
concerns about women being the objects,
not the apples, of men’s eyes. “I’ve been
looking for you for a very long time,” Reynolds tells Alma early in their romance. The
question is whether he’s enchanted by what
he sees in her, or on her.
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After years of pleasing audiences, some Oscarwinners failed to in their final films.
Gene Hackman will be remembered for his
Oscar-winning turn as Popeye Doyle in “The
French Connection,” as well as Lex Luthor and
Royal Tenenbaum.
But his last movie? He co-starred with Ray
Romano, below, as a retired president in the
forgotten 2004 comedy “Welcome to Mooseport.” It earned a grade of just 13% fresh on
Rotten Tomatoes.
Joan Crawford parlayed the unlucky mother
is looking like a far sweetersounding swan song than what
some other retiring acting legends have offered up. We analyzed every best actor and best
actress Oscar-winner since 1940.
Most worked right up to their
deaths. We considered those we
analyzed as retired only if their
final film appearance preceded
their death by at least three
years. Living actors needed to be
inactive for at least 10 years, with
no announced projects.
These retirements show us that
a final cinematic bow can go one
of three ways.
—Michael Salfino
PHANTOM
Leave Them Wanting More
Other actors finished with a full cinematic mic
drop.
John Wayne made dozens of westerns. “The
Shootist,” above, the Duke’s last screen appearance, is widely considered one of his best. The
1976 film hit 90% on Rotten Tomatoes.
Burt Lancaster, a four-time Oscar nominee,
played the pivotal role of “Moonlight” Graham in
“Field of Dreams,” released five years before his
death in 1994 and selected this year for preservation in the National Film Registry.
Paul Muni is best remembered for his gangster
in the original “Scarface.” He retired from the big
screen after an Oscar-nominated performance in
1959’s “The Last Angry Man,” the only time this
has happened among the actors examined here.
no
Mr. Anderson, for whom Mr. Day-Lewis
won the Best Actor award in 2007’s
“There Will Be Blood,” told an audience recently that he hoped Mr. Day-Lewis would
reconsider.
The actor could always make like
James Cagney. That screen legend went
20 years between his role in 1961’s acclaimed “One, Two, Three” and “Ragtime,”
right, which he appeared in at the age of
82. “Ragtime” received eight Academy
Award nominations.
Now Mr. Day-Lewis heads into retirement like Michael Jordan once did: widely
recognized as an all-time great still capable
of bringing his best. Whether the star of
1996’s “Space Jam” may have outlasted Mr.
Day-Lewis as an actor is anyone’s guess.
The Journal asked the basketball Hall of
Famer’s spokeswoman if he has retired
from acting. She declined to comment.
n-
Oh, Did I Retire? Just Kidding
Continued from page A15
he talked to her. The
woman’s expression showed
she was clearly uncomfortable but had no room to back
away. The salesman said he
was concerned but didn’t
know what to say, so he kept
walking.
“Let’s rewind history,” Ms.
Florentine says she told the
salesman. She helped him
figure out words he might
have used to approach the
man later and tell him his
behavior seemed out of line.
Other employees, however,
push back against the nuances of anti-harassment
law. Patricia Wise, a Toledo,
Ohio, employment attorney
who conducts training sessions, says some employees
are frustrated to learn that
the distinction between acceptable and problematic behavior under the law can depend on how the person on
the receiving end feels about
the exchange.
It may be fine to tell a coworker, “You look nice.
That’s a great dress,” for example, unless you say it repeatedly and look at her in a
way that makes her uncomfortable, creating a hostile
work environment, says Ms.
Wise, an adviser on labor-re-
lations issues for the Society
for Human Resource Management. The response she
hears from some men, she
says, is, “That’s ridiculous. I
can never talk to a woman in
the workplace again.”
Traliant, an online training
company founded in 2016,
added 95 of its 255 clients
during the two months since
CHRIS PIZZELLO/AP
TRAINING
Producer Harvey Weinstein
multiple women accused Hollywood producer Harvey
Weinstein of sexual misconduct this fall. Mr. Weinstein
has apologized for his past
behavior with colleagues, but
a spokeswoman says he denies allegations of nonconsensual sex and says he never
retaliated against any women
for refusing his advances.
The Traliant program
awards points to employees
for their performance, and
participants can compare
their scores on a leaderboard, says Andrew Rawson,
co-founder of the company.
Garrett Townsend, a 25year-old engineer at MacDonald-Miller Facility Solutions, a Seattle mechanical
contractor that uses Traliant’s anti-harassment program, says it sparked a discussion among co-workers
about whether it’s ever OK
for a supervisor to ask a
subordinate out on a date.
Some employers with established anti-harassment
training programs are taking
additional steps to get employees to open up. In a blog
post last week, Mastercard
chief human resources officer
Michael Fraccaro wrote that
in many cases in the news,
“complicit silence” among coworkers allowed problems to
take root. Stressing Mastercard’s commitment to decency and inclusion, he said
he’d be “sponsoring opportunities for employees to come
together and talk candidly”
about the issue.
Informal discussion
groups of 15 to 20 employees
at all levels will begin meeting early next year, Mr. Fraccaro said in an interview.
“This is really a turning
point,” he says, “not just in
the workplace, but in society
as well.”
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THE WALL STREET JOURNAL.
A18 | Wednesday, December 20, 2017
SPORTS
THE COUNT
GAROPPOLO
KEEPS ON
WINNING
Since 1970, quarterbacks that have
won their first five NFL starts:
PLAYER
YEAR
Jimmy Garoppolo NE, SF 2016-17
Ben Roethlisberger PIT
2004
Marc Bulger STL
2002
Daunte Culpepper MIN
2000
Kurt Warner STL
1999
Mike Tomczak CHI
1986
Dieter Brock LAN
1985
Jeff Hostetler NYG
1988-91
Mike Kruczek PIT
1976
Source: Stats LLC
NFL
ly
.
The Facts Behind Blake Bortles
A Twitter account was created to mock the quarterback’s struggles but things have gotten awkward
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Perfect Starts
Over the past eight games, during which the Jaguars have gone 7-1, Blake Bortles has completed 63.6% of his passes with 11 touchdowns and three interceptions.
ing. The Jaguars are no longer terrible. They are 10-4. They have
clinched their first playoff berth
since 2007. They’re within a game
of the Steelers and Patriots in the
AFC and at least two games ahead
of everyone else.
Bortles isn’t playing terribly, either. In fact, he’s playing quite
well. He has the highest passer
rating of his career. During the
team’s three-game winning streak,
he has completed 71.4% of his
passes for 903 yards with seven
touchdowns and no interceptions.
“These aren’t as funny when
he’s winning,” Tiscione said. “It’s
amazing how it’s turned around.”
Like so many other Jaguars
fans, the 30-year-old Tiscione
wasn’t particularly optimistic going into this season. The team had
just gone 3-13 last year. From 2011
to 2016, the Jaguars went 22-74—
worst in the NFL. Even the Browns
won more games.
Bortles was once this franchise’s
great hope. After starring at Central Florida, he became the team’s
No. 3 pick in the 2014 draft.
Tiscione and Clyne were there in
New York for the draft that day.
Bortles’s problems began almost
immediately. He threw 17 interceptions in 14 games as a rookie. He
led the league in interceptions the
next year.
@BortlesFacts began in 2015
BY ANDREW BEATON
“BLAKE BORTLES has never
thrown an interception or incomplete pass on Thanksgiving.”
This is a fact. It would be a
more meaningful fact if Blake Bortles, the Jacksonville Jaguars quarterback, had ever played a game
on Thanksgiving. He hasn’t. But
it’s still a fact. And it’s the type of
tongue-in-cheek fact that
@BortlesFacts dispenses to more
than 41,000 followers.
But the strange thing about this
Twitter account that has spent a
few years sarcastically complimenting the Jaguars quarterback
is that it’s actually run by a diehard Jacksonville fan. It was born
out of years of misery watching
his favorite team and its quarterback flounder.
“They’ve been so awful to watch
for the past decade,” said Mike
Tiscione, who started @BortlesFacts. “And he’s been awful to
watch.”
Matt Clyne, Tiscione’s Jaguarsloving friend who serves as his
sounding board for the tweets,
says that ineptitude was the genesis of the account. “We needed
some kind of silver lining to make
us happy.”
Here is where things get a little
awkward and a lot more interest-
n-
(T-B) LOGAN BOWLES/GETTY IMAGES; JOHN HEFTI/ASSOCIATED PRESS
The New England Patriots
and Bill Belichick don’t often
wind up on the short end of any
deals they make. But after seeing
Jimmy Garoppolo lead the seemingly hapless 49ers (4-10) to
three straight wins, the big question is why other teams didn’t
offer more for the 26-year-old
quarterback?
Garoppolo (pictured below),
who was traded by the Patriots
to San Francisco in October for a
measly second-round draft pick,
is the first quarterback since Ben
Roethlisberger in 2004 to win his
first five career starts. Garoppolo
won two games filing in for suspended Patriots quarterback Tom
Brady last season. Besides Garoppolo and Roethlisberger, the
feat has been accomplished by
only seven other quarterbacks
since the NFL merger in 1970.
One of the keys for Garoppolo is his efficiency, averaging
8.74 yards per attempt with a
103.0 rating. Only Kurt Warner
(9.98, 131.4), who inherited the
cast of skill players that earned
the St. Louis Rams the nickname
of “The Greatest Show on Turf,”
has been better.
The only knock against Garoppolo is that the defenses he’s
faced this season (Chicago Bears,
Houston Texans, Tennessee Titans) are rated poorly. That
changes on Sunday when the
top-ranked unit of the Jacksonville Jaguars (10-4) comes into
town.
—Michael Salfino
Weather
and was mostly enjoyed by a small
cadre of Jaguars fans who could
find joy in things like “Blake Bortles has never lost in the Super
Bowl” even though Bortles, of
course, had never played in the
Super Bowl.
The jokes were ones Tiscione
and Clyne would say back and
forth while watching games together. Then they started sharing
them with the world.
After it didn’t get any better for
Bortles in 2016—his third straight
season throwing at least one interception per game and completing
fewer than 60% of his passes—it
looked like it might be the end of
the road. Doug Marrone, in his
first full season as coach in Jacksonville, benched Bortles in the
preseason.
“I don’t know if it can get any
worse than that,” Bortles said
then. “As a quarterback in the
NFL, that’s probably the last thing
you want to hear.”
Still, he wound up winning the
job over Chad Henne. And the beginning of this season looked like
more of the same.
The team started 3-3. Wins
largely came on the back of star
rookie running back Leonard Fournette and a menacing defense. In a
win against the Steelers, the Jaguars intercepted Ben Roethlisberger five times. In that state-
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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30s
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59 35 s
43 34 pc
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International
City
Amsterdam
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Baghdad
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Brussels
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Moscow
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Paris
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Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
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Santa Fe
Seattle
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Wash., D.C.
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GET MY DRIFT? | By Ethan Erickson
Across
1 Service sign-off
5 Diva delivery
10 Stock collection?
14 Tempo
15 Numerical
comparison
16 A Christmas
tree’s is piney
17 Guarantee that
your deception
won’t be given
away?
20 DMV wait,
seemingly
21 Kin of a police
BOLO
22 Supplies an
address
23 Chore involving
seven little pairs
of pants?
27 Long-distance
call?
28 Pitcher Hershiser
29 Brake
component
32 Flannel shirt
feature, often
35 Gooey party
spread
36 Magi modifier
37 Place to deck
with boughs of
holly
38 Fair, in a way
39 It hits the roof
40 Like loafers
41 Spots for skiers
42 Twinkling
43 Welcoming
wreath
44 Wrongful act
45 Heater
46 Tag played on
the slopes?
52 Like some
Christmas
Masses
54 Waggle dance
dancer
55 Travel mug part
56 Armed for a
winter battle?
60 “God ___ ye
merry,
gentlemen...”
61 Stock up on
62 Emperor
Atahualpa, e.g.
63 Takes a place at
the table
64 Olympic
weapons
65 Comet, e.g.
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
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City
Hi Lo W Hi Lo W
Anchorage
33 16 c
23 19 pc
Atlanta
69 49 t
57 48 pc
Austin
75 44 pc 73 62 c
Baltimore
47 27 c
43 31 s
Boise
38 21 sn 32 22 s
Boston
42 22 s
31 23 s
Burlington
31 10 c
20 9 pc
Charlotte
58 40 r
52 40 pc
Chicago
39 30 pc 41 35 c
Cleveland
35 25 pc 41 34 c
Dallas
65 48 pc 74 54 pc
Denver
62 22 pc 25 9 sn
Detroit
36 26 pc 38 33 c
Honolulu
78 65 c
79 65 pc
Houston
74 51 pc 75 66 c
Indianapolis
44 26 pc 48 38 pc
Kansas City
48 40 s
55 30 c
Las Vegas
68 42 pc 54 32 s
Little Rock
60 44 r
65 54 s
Los Angeles
62 46 pc 64 41 s
Miami
83 65 s
83 66 s
Milwaukee
33 28 pc 39 33 c
Minneapolis
27 21 sn 26 14 sn
Nashville
55 38 r
59 51 pc
New Orleans
76 53 t
72 61 pc
New York City
42 29 pc 38 33 s
Oklahoma City
61 42 s
62 30 s
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1
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20s
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20s
ment victory, Bortles threw only 14
passes for 95 yards.
Lately, though, a new Bortles
has emerged. Over the past eight
games, during which the team has
gone 7-1, he has completed 63.6%
of his passes with 11 touchdowns
and three interceptions.
Now @BortlesFacts has grown
from a few thousand followers to
10 times that. The Jaguars success
has helped, and it has started to
draw more attention.
It received mention by Bill Simmons on his popular sports podcast. The account has tweeted
screenshots of being blocked by
people like Cardinals quarterback
Blaine Gabbert, whom fans once
became similarly disenchanted
with after the Jaguars selected
him 10th overall in the 2011 draft.
(Bortles’s official Twitter account
does not follow @BortlesFacts.)
As fans, Tiscione and Clyne
have revelled in the newfound success of their favorite team when
they watch every game together.
But it also created a problem: Can
they still really poke fun at their
quarterback when he’s playing so
well and leading the team to the
playoffs?
It’s not as easy, so they have
pivoted. They now frequently take
jabs at other teams or players, like
“Blake Bortles has never been
benched for Geno Smith.”
30 “Keep dreaming!”
31 Disclaim
32 “Modern Family”
dad
33 Take on cargo
34 2013 Robert
Redford movie
35 Quote on a
jacket
36 Squeeze and
twist
38 Malty brew
42 Bethlehem
setting
44 Archaeologist’s
discovery
45 Some Christmas
decorations
47 Small
amphibians
48 Cornish of 2009’s
“Bright Star”
49 Dior dress
50 Recipe
instruction
51 Winter of rock
52 Much of Eur.,
once
53 “The ___ Love”
(R.E.M. song)
57 Spot for a tot
visiting Santa
58 Alkaline
solution
59 Free
Down
1 Vaulted
recesses
2 Massenet opera
3 Affordable, in
brand names
4 “...and a happy
___ year”
5 Stanley Cup, e.g.
6 Public menorah
lighter, often
7 “___ beginning to
look a lot like
Christmas...”
8 Inventive account
9 It can make for
frenzied flocks
10 Ring dances
11 Parisian
chanteuse
12 Mechanical
repetition
13 Temperance
proponents
18 Yammered
19 Siberia neighbor
in Risk
24 “...___ I tell of
Yuletide treasure,
fa la la la la la la
la la!”
25 Home of the
Maple Leafs
26 TV journalists
Burnett and
Andrews
Previous Puzzle’s Solution
A
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A19
OPINION
congestion on BNSF’s waterfront line, at a time when coal
exports to Asia and Canadian
oil sands shipments to West
Coast refineries were expected
to surge.
This shovel-unready project
finally saw its first train Monday, which promptly derailed
on a curve outside of Seattle,
traveling at 80 mph. Three people died. Positive train control
was supposed to prevent such
accidents, using special cellular
signals and trackside monitors
to stop a train traveling too fast
or ignoring signals. But it was
not yet activated.
The system, mandated by
Congress, has laboriously lumbered into implementation, behind schedule and over budget,
even as the average train rider
now carries a phone with better capabilities. After a similar
accident in Philadelphia two
years ago, this column pointed
out that Apple and Google
likely could have detected the
derailment before Amtrak did.
To the Seattle Times on Monday, Deborah Hersman, former
head of the National Transportation Safety Board, made a
similar point: “People have this
technology in their phones. A
Pokémon app can tell you
you’re driving [a car] and disable the app.”
Which brings us to the untimely jibe of the year, Elon
Musk dissing public transit at
an event last week in California.
“Why do you want to get on
something with a lot of other
people, that doesn’t leave
where you want it to leave,
doesn’t start where you want
it to start, doesn’t end where
you want it to end? And it
doesn’t go all the time. . . .
That’s why everyone doesn’t
like it. And there’s like a bunch
of random strangers, one of
whom might be a serial killer.
OK, great. And so that’s why
people like individualized
transport, that goes where you
want, when you want.”
There are better ways
than trying to run fast
passenger trains on
unsuitable lines.
OK, this is not a useful deconstruction of the problem.
New Yorkers find the subway a
quite handy way to connect
two short walks. And many of
us willingly choose a four-hour
air travel hassle over a 10-hour
car ride despite the inconvenience of airline scheduling
and crowding.
The question isn’t personal
transportation vs. public, but
when and how public money
and planning should be deployed to shape our choices.
Does high-speed intercity rail
make sense in the U.S.?
Depending on how you allocate the track-maintenance
costs, Amtrak’s Northeast Corridor service claims to pay for
itself. Then again, many local
commuter rail services, if Amtrak weren’t in the way, could
coordinate their own intercity
service if there were a demand
for it.
But Amtrak services elsewhere in the country, including
the Los Angeles-Seattle line,
are hopelessly uncompetitive,
gobbling up taxpayer subsidies
of $150 or more per passenger
while contributing very little
to easing congestion on the
roads or airports. These rides
are taxpayer-funded larks for
holiday makers like me.
The Democratic fetish for
high-speed rail can perhaps be
explained only with reference
to Freudian psychosexual categories. The choice is between a
California-style
bullet-train
boondoggle, or pushing fast
passenger trains onto existing
grade-level lines unsuited to
fast passenger trains. These often pass through densely populated areas, as was the case
with the high-speed rail project
the Obama administration
brought to Washington state.
Meanwhile, the Trump administration has revived a Bill
Clinton-Al Gore proposal to
quasi-privatize air-traffic control. If it succeeds in incentivizing the deployment of
non-1950s technology to expand the capacity of the airtraffic system, it would do infinitely more to improve the
ease of intercity travel.
On the ground, Virginia authorities this month imposed
hourly congestion pricing to
free up traffic on a crowded
stretch of Interstate 66 leading
to the Washington Beltway.
Though not praised by many
drivers, it’s a solution that
would actually serve the public
better than any high-speed rail
fantasy.
Trump Gets a Thing or Two Right
n-
more attractive than liberal
democracy.
During the Obama administration, the president and
senior officials often said
that policies with which they
disagreed were on the
“wrong side of history.” This
naive progressivism was a
deep mistake, because history has no side. Morality
has a side. So does ethics.
But there is no guarantee
that the passage of time will
move us in what morality
and ethics teach us is the
correct direction.
I speak in secular terms, of
course. Many religions do
teach that human history has
a direction and an endpoint,
determined by the hand and
grace of a benevolent God.
President Obama was fond of
quoting Martin Luther King,
who was quoting Theodore
Parker: “The arc of the moral
universe is long, but it bends
towards justice.” This proposition is perfectly defensible
as a profession of faith, but it
is a poor guide to the conduct
of public affairs.
Another thought-provoking
section of the NSS reads: “The
United States helped expand
the liberal economic trading
system to countries that did
not share our values, in the
hopes that these states would
liberalize their economic and
political practices. . . . Experience shows that these
countries distorted and undermined key economic institutions without undertaking
significant reform of their
economies or politics.”
The policy criticized here
no
As readers of
this column
know, I am
not a fan of
President
Trump’s secupolicy.
POLITICS rity
Nonetheless,
& IDEAS
the National
By William
Security StratA. Galston
egy his administration issued earlier this week—while
underscoring the administration’s many contradictions—
contains a handful of points
that his critics would do well
to ponder.
“There is no arc of history
that ensures that America’s
free political system will automatically prevail,” the document reads. “Success or failure
depends on our actions.”
I doubt policy makers in
previous administrations believed that their decisions
were irrelevant because some
Hegelian process would move
us inexorably toward the
world we desired. Still, triumphalism was much in evidence
after the fall of the Berlin
Wall and the collapse of the
Soviet Union. Not only had we
prevailed against our Cold
War adversary, but also it
seemed that there was no viable alternative to the American ensemble of free institutions, free markets and a rulegoverned international system.
The wind was in our sails. It
was hard to imagine that
within a quarter of a century,
a substantial portion of the
world’s population would find
ethno-nationalism, Islamism
and China’s market-Leninism
was a deliberate one. Theorists of what was termed
“modernization” believed that
economic liberalization in authoritarian countries would
promote a growing middle
class, which in turn would put
pressure on governments to
respect civil liberties and
move toward accountable
public institutions. At the end
of this road lay democracy,
achieved through peaceful,
evolutionary means.
But his National
Security Strategy fails
to resolve important
contradictions.
The example of China challenges this theory (some
would say refutes it). While
some members of China’s expanding middle class have
worked to expand civil liberties and promote the rule of
law, most have made their
peace with a government that
is becoming more rather than
less authoritarian. For now,
anyway, material progress is
an adequate substitute for selfgovernment, and Xi Jinping’s
restoration of China’s centrality in world affairs evokes a
satisfying sense of national
pride. The U.S. cannot count
on economic growth in other
countries to make the world
safe for democracy.
In this context, it is regrettable that the Trump administration has no credible alternative means of promoting
democracy. Instead, it offers
a false choice between extremes. “We lead by example,” the NSS declares, but
“we are not going to impose
our values on others.” One
problem with this formula:
The U.S. example is less
globally attractive than it
once was, a fact for which
the current administration
must accept a considerable
share of responsibility. But
more than this: There are
ways of actively encouraging
and supporting the growth of
democratic institutions that
do not “impose” democracy
on anyone.
Although the NSS acknowledges these alternatives and
cites the relevant postwar history, it does not present a robust plan for pursuing them
in current circumstances. Will
the administration bolster
funding for the Millennium
Challenge Corporation, which
it singles out for praise? How
will an increased reliance on
private capital rather than
public grants help build democracy? Can we “upgrade
our diplomatic capabilities,” a
goal the NSS endorses, while
slashing funding for the State
Department?
The document does little
to narrow the gap between
the administration’s professed principles and its actual practices. Nor does it explain how the U.S. can oppose
Russia’s aggression against
struggling democracies in
Georgia and Ukraine while
Mr. Trump pursues his
strange personal relationship
with Vladimir Putin.
Russia’s Longest-Serving Political Prisoner
By Mikhail Khodorkovsky
D
ec. 20 marks the fourth
anniversary of what will,
in my life, always be a
day of rebirth: my release from
a Russian prison, where I had
been jailed for 10 years by
Vladimir Putin for crimes I did
not commit. I remember my police escort, as he walked down
the boarding ramp of the plane
that was to take me to Berlin,
telling someone on his walkietalkie that I was on board. I remember the door closing.
Later I learned how many
governments and people had
applied pressure for my release. Among them was Amnesty International, which
added me to its “prisoners of
conscience” list in 2011.
On this, the anniversary of
my freedom, I again thank
AI—and I am urging it to put
its weight behind Russia’s longest-serving political prisoner,
Alexei Pichugin, who is stuck
in the same vortex that entrapped me.
Secure the Peace,
Then Talk Rights
Realism and Democracy
By Elliott Abrams
(Cambridge, 295 pages, $24.99)
E
lliott Abrams, a senior fellow for Middle Eastern Studies
at the Council on Foreign Relations, has written a study
of idealism vs. realism in American foreign policy from
the Cold War through the end of the Obama years. The book is
also, more specifically and more pointedly, a summary of the
current debate over the proper role of democracy-building in
U.S. policy in the Middle East.
Realists in the vein of Talleyrand and Palmerston won’t like
this book. Those 19th-century statesmen were not concerned
with democracy. Their lodestar was the balance of power. To
serve reason of state, they would sup with the devil, betray
allies and break treaties. They lived by the ancient Roman
precept Salus populi suprema lex—the good of the nation is
the highest law.
So did Woodrow Wilson, who during World War I fought
alongside czarist Russia, the most despotic regime in Europe.
So did FDR and Churchill, who during World War II embraced
Stalin, who made the last Russian emperor look like a choirboy. Later, America got into bed
with the fascist regimes of Salazar
and Franco, armed and coddled
Saudi kings and the shah of Iran,
made friends with the dictators of
Taiwan, South Korea and South
Vietnam. It also supported Saddam
Hussein in his war against Iran’s
Ayatollah Khomeini in the 1980s.
Time and again, strategic interests
beat out democratic ideals.
On the other hand, idealists like
George W. Bush will like “Realism and
Democracy.” (Mr. Abrams served No.
43 as deputy national security adviser.)
“The defense of freedom requires the advance of
freedom,” he laid down in 2005, justifying the need for regime
change in Iraq. Mr. Abrams seconds Mr. Bush: “Promoting
democracy, not only defending human rights, should be at the
heart of U.S. policy.” In terms of principle, Messrs. Bush and
Abrams are right. A world of democrats beats a world of
despots any time.
First, democracies fight other democracies only rarely.
Second, the world’s leading democracy has a natural interest
in enlarging the juste milieu of like-minded nations. Despots
make for uneasy company. Their mind-sets are alien, indeed
hostile, to the creed that inspires America—Lincoln’s nation
“conceived in liberty, and dedicated to the proposition that all
men are created equal.” Hence, a democratic world is as good
for the U.S. as it is for the rest.
There is no debate here. But then, as Shakespeare said: “If
to do were as easy as to know what were good to do, chapels
had been churches and poor men’s cottages princes’ palaces.”
In other words: We are damned if we do, damned if we don’t.
Imagine that President Obama had acted in 2011, when the
Syrian Spring broke out and Bashar al-Assad went to war
against his own people. Today half a million are dead and five
million have fled the country; Russia is back in the Middle
East; and Iran has bought itself a border on the Mediterranean.
Inaction ended in moral as well as Realpolitik disaster.
co Fo
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Starting with
a video in
June, a local
police chief
in the Seattle
area warned
residents
BUSINESS
that passenWORLD
ger trains on
By Holman W.
the new Point
Jenkins, Jr.
Defiance Bypass would
be coming along at 79 mph, a
lot faster than the 35 mph
freights local residents were
used to. “I cannot stress this
message enough: Do not try to
beat these trains, because you
simply won’t do it,” Chief Ted
Solonar, who oversees police on
a nearby military base, says in
the video.
Donald Trump tweeted that
Monday’s accident on the
same line proved the need for
infrastructure investment. Actually, the line was a product
of infrastructure investment,
as part of the high-speed rail
package in the 2009 “stimulus” bill. Will the president
learn to get the facts before he
tweets? Of course he will—
when pigs fly.
An infrequent rail rider,
namely me, took a train from
Portland to Seattle last spring,
enjoying close-up views of the
Tacoma waterfront and Tacoma Narrows Bridge. Those
views are no longer available.
Thanks to the new stimulusfunded Point Defiance Bypass,
travelers get a view of Interstate 5 and save 10 minutes
between Seattle and points
south of Tacoma. The real
benefit, though, was to reduce
BOOKSHELF | BY Josef Joffe
ly
.
Fast Rail Goes Awry in Seattle
Mr. Pichugin, a former
midlevel supervisor in the security office of Yukos Oil, was
arrested in 2003 and has been
convicted of multiple murders
based on “evidence” fabricated
Alexei Pichugin
deserves Amnesty
International’s help.
by the Kremlin’s minions.
Western democracies and even
Interpol have decreed his case
to be political and devoid of
real evidence. In short, Russia
holds Mr. Pichugin hostage, in
hope that he will buy his freedom by giving false testimony
against me.
There are protocols, I know,
for determining who is a prisoner of conscience, as well as
academic debate on the precise meaning of the term. I
can tell you the simple test I
apply. For 14 years and counting—more than 5,000 days—
Mr. Pichugin has held in his
hands the key to his freedom:
All he needs to do is bear false
witness against me and other
Yukos executives. Lie, and
walk free.
Every day, he wakes to that
invitation. Every day, he refuses. There is only one way to
describe his condition: Mr.
Pichugin is a prisoner of
conscience.
How did Amnesty International play a role in securing
my freedom? Its support
changed the perception of my
case in the eyes of governments around the world. It affected ordinary people, whose
letters of support sometimes
reached me in my cell at Penal
Colony 7. As the years went by,
I would hear about solidarity
events organized by AI, conferences held by Memorial
Germany, Reporters Without
Borders, the International
Federation of Human Rights
and many others.
In the winter of 2013,
when word reached me that
the 10th anniversary of my
arrest had been marked by an
Amnesty International conference, I took heart that I
was remembered beyond the
wall that Mr. Putin’s jailers
had attempted to erect between me and the outside
world. Only the unjustly imprisoned know the strength
that can be drawn from such
acts of solidarity.
Amnesty
International
should put its influence behind
a man whose conscience and
moral compass compel him to
stay true to the truth—of his
innocence and the innocence
of others—under unrelenting
pressure to feed the falsehoods
of Mr. Putin’s agenda.
On this day of my rebirth, I
urge Amnesty International to
add a new name to its list:
Alexei Pichugin, prisoner of
conscience.
Mr. Khodorkovsky is the
founder of the Open Russia
movement and a former CEO
of Yukos Oil.
If the U.S. wants to succeed at democratic
regime change, it can’t act like a fire brigade:
Rush in, flood the place, then head back home.
Then to Libya, where America did act in 2011, and the U.S.
Air Force performed brilliantly. Seven months later, Moammar
Gadhafi was no more. Yet the country, too, was no more. Today
it’s a war of each against all; there is neither peace nor democracy—and no end in sight. The moral of this tale is tragic:
Noble intentions and elite forces are good for removing bad
guys, but they don’t win the peace, let alone spawn democracy.
How to do it? This is where Mr. Abrams’s advice comes in
handy: “Build a constituency for democracy, and focus on the
protection of liberal/moderate voices.” Yet setting aside the
glorious role that the U.S. played in postwar Germany, Italy
and Japan, patient, open-ended engagement has never been a
strong suit of the American temperament. The U.S. tends to
act like a fire brigade: Rush in, break down walls, flood the
place—and head back to the station house. If you want to
succeed at democratic regime change, you must stay without a
“leave-by” date.
We now face the same problem in the swath across Syria
and Iraq once held by ISIS. There the U.S. did what it does
best: It recruited local allies, dispatched special-ops forces and
unleashed its unmatched air force. But who will mastermind
the next phase, which is securing the peace?
Who will counter Iranian and Russian ambitions while
rebuilding the economy and putting in the backbone of democratic institutions? Mr. Abrams is right when counseling the
U.S. to help Syria and Iraq to “train government officials to
staff those institutions, create vibrant political parties, convene free and fair elections, [thereby] enlarging the political
constituency for democracy.” But, as he recognizes, this “will
take many years,” indeed “generations,” in an Islamic world
that lacks a democratic tradition.
Germany and Italy, two showcases for American reform, did
have such a tradition. Above all, they had civil societies that
preceded Hitler and Mussolini. They had functioning institutions, whereas the Arab world has had failed and failing states.
Nation-building must precede democracy promotion. Is the
U.S. up for it in the Age of Trump, with No. 45 having been
swept into the White House on a wave of “America first”?
Again, on the level of principle, Mr. Abrams makes a perfect
point: To bring democracy and robust institutions to the Arab
world serves America’s long-term interests as well as its
ancient ideals. The devil lurks in the here and now, with shortterm interests dominating day-to-day policy.
For instance, we shouldn’t pamper tyrants like Egypt’s
President Sisi, as repression breeds Islamism and renewed
repression. But consider this: When Sumner Welles, FDR’s
under secretary of state, called Nicaraguan strongman
Anastasio Somoza García a “bastard,” the president shot back:
“Yes, but he is our bastard.”
Right now, alas, it is better to have Mr. Sisi in place than the
Islamists, especially since that “bastard” would likely turn to
Moscow if pushed too hard by Washington. Still, Mr. Trump
should read the last two lines of Mr. Abrams’s book: “Our principles and our security interests both suggest that we should
be giving repression and tyranny far more effective opposition,
and freedom and democracy far more effective support.”
That’s fewer characters than the 280 now allowed by Twitter.
Mr. Joffe is co-editor of Die Zeit and a distinguished fellow
of the Hoover Institution, where he teaches U.S. foreign policy.
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.
A20 | Wednesday, December 20, 2017
* *
THE WALL STREET JOURNAL.
OPINION
LETTERS TO THE EDITOR
The Tax Reform Promise
No Canadian Need Worry About Health Care
T
A Win for Crony Capitalism
the core of Ex-Im. During the bank’s last fully
operational year, Boeing and General Electric
were its biggest beneficiaries, together receiving $11 billion in guarantees. Both companies
have major operations in Mr. Scott’s home state,
South Carolina.
Ex-Im can’t approve financing arrangements
over $10 million without a three-person quorum, which it has lacked since 2014. Meanwhile,
Boeing and GE are doing fine without largesse
from this purported lender of last resort. Boeing routed Airbus at the Dubai Air Show last
month, scoring $17 billion in orders in a day.
The Banking Committee on Tuesday approved other nominees deemed more friendly
to the bank. But Senators Pat Toomey and Richard Shelby have raised the possibility of blocking their confirmations and thus denying the
Ex-Im a quorum. That’s reasonable, given that
there won’t be a single dissenting voice standing between the board and the bank’s favors for
politically connected companies.
no
n-
he Senate Banking Committee dealt the
Trump Administration a confirmation defeat on Tuesday, rejecting Scott Garrett to
lead the Export-Import Bank. Republicans Mike
Rounds and Tim Scott cast the deciding votes,
putting special interests ahead of taxpayers.
As a New Jersey Congressman, Mr. Garrett
twice opposed renewing the bank’s charter. But
as a nominee he promised to support “a fully
functioning bank” in a “fair, open and transparent manner.” He would also only have one vote
on a five-vote board.
The bank’s supporters, including Mr. Scott,
claimed Mr. Garrett’s modest reform agenda
constituted a flip-flop, even as they argued his
past views on Ex-Im disqualified him. On Tuesday Mr. Rounds offered a revealing justification
for his “no”: Mr. Garrett’s past desire “to see
[Ex-Im] abolished as an example of crony capitalism would not have worked in the operation
of the bank.”
Whoomp, there it is. Crony capitalism is at
Closing the Sanctions Net on North Korea
A
Canada’s single-payer health-care
system has long served as a model for
Americans advocating for universal
care, particularly following Senator
Bernie Sanders’s visit to Toronto in
October. Your editorial “Canada’s
Health-Care Queues” (Dec. 13) argues
that Canada’s single-payer system results in longer wait times, but it fails
to acknowledge any of the monumental strides we’ve made in delivering
high-quality health care for all citizens, regardless of their income.
In the province of Ontario, our
health outcomes speak for themselves
when compared with those in the U.S.
We see better survival rates for those
diagnosed with cancer, longer life expectancy in general and lower infant
mortality. A higher percentage of people have a family doctor in Ontario
than in the U.S. And, working together,
our health system achieves all of this
while spending about half as much as
the U.S. does per capita. In the U.S.,
you spend nearly 20% of your GDP on
health care, and still some Americans
go without insurance. Canada, meanwhile, spends 10% of its GDP on health
care and covers virtually everyone.
When a Canadian patient has a
non-urgent health issue, it’s true they
must sometimes wait. That’s an issue
that we in Ontario are grappling with
how to address. But it’s important to
remind readers that if a Canadian has
a serious medical need, he or she is
taken care of immediately. In Ontario
and across the country, we’re proud
of the health-care system we’ve built
and excited to talk about it. We believe that access to health care for everyone is the very definition of fairness—it is a human right.
KATHLEEN WYNNE
Toronto
Ms. Wynne is the premier of Ontario.
to the number of primary-care physicians (PCP) in relation to specialists.
Physicians in internal medicine, family practice and pediatrics are PCPs.
In Canada and other industrialized
countries the ratio is five PCPs per
specialist. In the U.S., we have five
specialists per PCP. This favorable 5to-1 ratio results in a considerable increase in the number of specialists
available to our population. Another
factor to consider is the increased
number of CT scanners, MRI and ultrasound machines available to the
patient population in the U.S. I sincerely doubt whether a single-payer
system will generate a greater number of specialists and vital diagnostic
systems.
PETER A. STATTI, M.D.
Santa Maria, Calif.
There is never enough care to go
around. Single payer can work and
good primary care and preventive
medicine have been shown to improve long-term medical outcomes.
However to make the system operable, you must restrict care to chronically ill patients in certain groups.
The Canadians use wait times. The
European model goes further, using
wait times but also limiting or outright denying procedures to the 5%
of the population that consumes
50% of health care. This group is
the elderly, disabled and premature
infants.
JON LINKER
Houston
Since starting my career some 35
years ago, I have been taking care of
Canadian residents. The typical
phone call I receive is about a relative who cannot get timely care in
Canada. The caller asks, “If we pay
for your consultation and first treatment, can my relative return and conUnlike in the U.S., people do not
tinue treatment without a wait? Will
die in Canada because they get no
you see us?” Of course I never detreatment because they can’t afford
clined. The wait-time problem was
it. They don’t go bankrupt trying to
similar in the U.K. until private care
save the life of a loved one with a se- was legalized for those with means,
rious illness.
effectively creating a two-tier system.
You suggest that Americans should The single-payer National Health Serreject any “single payer” system. But
vice’s primary goal is to cut queues
they would not, once they had it.
to less than 12 weeks. Occasionally it
VALENTINE BARNES happens.
New York
THEODORE YAEGER, M.D., FACR, FRSM
Wake Forest University
A significant difference between
School of Medicine
the Canadian and U.S. systems relates
Winston-Salem, N.C.
co Fo
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he tax reform that will pass Congress
As for the politics, reform’s passage shows
Wednesday fulfills a major Republican the GOP’s growth wing is still prominent. This
campaign promise, but more important was no sure thing as conservative wonks fell
is that it marks a return to the
for policy fads and sneered at
The GOP delivers
politics of growth after many
pro-growth reform as irrelelean years of envy and income
to the needs of the workagainst long odds and vant
redistribution. It offers hope
ing class. In the end they waBeltway opposition.
of broader prosperity after a
tered down the reform but
decade of slow growth and riscouldn’t hijack it.
ing inequality.
This is a credit in particular
On the merits, the bill is the most pro-growth to the successive House Ways and Means Chairtax policy since the Reagan reforms of 1981 and men who negotiated the reform tradeoffs. Dave
1986. We should add that it is not as good for Camp, Paul Ryan and Kevin Brady persisted
individual taxpayers as those two acts. The bill through years of political setbacks for this mocuts marginal tax rates only a little for individu- ment, while Senate Majority Leader Mitch
als, and that will temper its growth impact. The McConnell shrewdly tapped Pat Toomey of
politics of envy that has dominated American Pennsylvania to maneuver the bill through the
politics since the mid-2000s has also infected Budget and (with Orrin Hatch) Finance commitmany Republicans, especially its Beltway intel- tees. These are examples of how individual leglectual class.
islators make a difference.
This reform will rise or fall on its business
The victory is also a vindication for these
tax changes, and those are arguably superior to and other Republicans who resisted the advice
the 1986 act. The corporate rate cut to 21% from not to work with President Trump. The GOP is
35% solves a core problem of U.S. economic and supposedly forever morally tainted by trying to
business competitiveness. Along with 100% ex- pass the agenda it ran on because Mr. Trump
pensing, the rate cut slashes the cost of capital is, well, you know. But voters who elected a Reenough to cause CEOs to think again about publican Congress want results that are good
America as a place to invest. Sweeping away for the country, and Americans shouldn’t suffer
many (alas, not all) special tax breaks means for four years because voters preferred Mr.
fewer incentives to misallocate capital.
Trump over Hillary Clinton. Mr. Trump deThe timing may also be right in giving this serves credit for selling reform and working
already long expansion a second wind. The with Congress to pass it.
Obama expansion has been so tepid in part due
Republicans succeeded despite a narrow
to historically slow capital investment, and de- Senate majority, no help from Democrats, and
regulation and tax reform are policy levers de- the near-universal hostility of the Beltway
signed to revive it.
press. They also had to overcome the KeynesThe economists who gave us the slow Obama ian bias embedded in such institutions as the
economy now say this reform is ill-timed, but Congressional Budget Office and Tax Policy
they look only at the demand side of the econ- Center that are treated as policy oracles when
omy. They ignore the bill’s supply-side incen- they merely offer guesses about policy outtives to increase the economy’s productive ca- comes that are often wrong. At least growth
pacity. These incentives will be all the more conservatives had the Tax Foundation as a
important as the Federal Reserve moves to nor- counter-weight, but sooner or later they need
malize the monetary policies that lifted stocks to repeal the Budget and Impoundment Conand other asset prices during the Obama years. trol Act of 1974.
i
i
i
The Obama policy mix helped the affluent who
The media are now chortling with Democrat
had assets, while faster growth should spread
Chuck Schumer that Republicans will “rue the
prosperity more broadly.
Will it work? There are wild cards to watch day” they passed this. Actual CNN headline:
like the Fed, national security shocks and Donald “Public opposition to tax bill grows as vote apTrump’s trade policy. But measured by business proaches.”
But we’d dislike this bill too if all we knew
sentiment, the portents are good. The National
Federation of Independent Business confidence was what the media reported. The polls show
index hit an all-time record in November, while that most Americans don’t even think they’ll get
optimism among manufacturers hit an unprece- a tax cut, when nearly all taxpayers will. Perhaps
dented high in the fourth quarter. Mr. Trump is voters will find that irrelevant in 2018, but the
mistaken to focus so much on the stock market, result is certainly better for Republicans than
since corrections are inevitable. But the mar- explaining another legislative failure. The far
ket’s rise since Election Day in 2016 isn’t a politi- more important payoff will be for the country
cal levitation act. It’s an omen of confidence in if the result is a return to faster growth that lifts
wages and American confidence.
higher earnings and faster growth.
ly
.
T
REVIEW & OUTLOOK
ustralian authorities announced Sunday
that they arrested a naturalized immigrant from South Korea for helping North
Korea evade United Nations sanctions. Chan Han
Choi, described by the police as a “loyal agent of
North Korea,” was allegedly brokering the sale
of missile technology and coal for Pyongyang.
The police became aware of Mr. Choi’s activities
this year, but he may have facilitated the North’s
trade for years or decades.
Other U.S. allies have also been slow to roll
up North Korea’s trade network. The Institute
for Science and International Security (ISIS),
a Washington-based think tank, reported this
month that Germany, France and Japan failed
to stop banned trade with North Korea. “North
Korea also targets states that are otherwise
strong enforcers of export controls and uses deceptive methods, such as front companies or actors, to bypass these countries’ export control
laws,” the report states.
Countries that don’t have strong ties to the
U.S. and whose security services are less developed will undoubtedly take longer to implement
sanctions. Thirteen countries are buying arms
from North Korea, according to the ISIS report.
A U.N. panel in September accused Tanzania
and Mozambique of paying Pyongyang to upgrade their air-defense systems.
More common violations include buying
nonmilitary goods and hiring North Korean
state-owned companies for construction and
civil-engineering projects. The U.N. panel listed
14 African countries with such contracts, only
one of which, Namibia, told the U.N. that it sent
the North Koreans home.
The most puzzling case is Malaysia. North Korean agents assassinated the half-brother of dictator Kim Jong Un in February at Kuala Lumpur’s
airport, which understandably chilled relations.
But the Malaysian government has so far failed
to shut down companies that do business with
Pyongyang in defiance of sanctions.
In a speech on sanctions last month, U.S.
Ambassador to the U.N. Nikki Haley noted “reports of the regime continuing to smuggle coal
into neighboring Asian countries using deceptive tactics to mask the coal’s origins.” The
North is also buying petroleum products using
ship-to-ship transfers in the Yellow Sea and Sea
of Japan. While Ms. Haley didn’t name names,
North Korean ships have continued to dock at
Chinese ports.
This cheating explains why there are few
signs of economic distress in North Korea so far.
While the price of gasoline and diesel fuel did
increase in recent months, daily life hasn’t
changed much and the regime continues to
spend on its weapons.
If it expects sanctions to force Pyongyang to
the negotiating table, the U.S. can’t afford to go
easy on Chinese sanctions violators for fear of
offending Beijing. Last month Treasury imposed secondary sanctions on four Chinese
companies for sanctions running, a promising
if belated sign of seriousness. Blacklisting more
rogue traders and the Chinese banks that finance them would send a message to sanctions
violators that Washington and its allies will put
them out of business.
Fracking Puts Pressure on OPEC’s Bottom Tier
Regarding Walter Russell Mead’s
“Fracking Our Way to Mideast Peace”
(op-ed, Dec. 12): While the general
sentiment is correct that American
energy independence frees American
foreign policy, it does not address the
repercussions. Consider the economic
impact in the lower economic status
countries in OPEC (Venezuela, Libya,
Angola, Algeria, Ecuador, Kuwait and
Nigeria—almost all of the cartel except Saudi Arabia, Qatar, Iran and the
UAE). These repercussions have
ranged from slight economic decline
to complete economic collapse (see
Venezuela).
This is by no means a fault of
American foreign policy. On the contrary, OPEC has made decisions in recent years that have not had the best
interest of its entire member body at
heart. Mr. Mead does little to describe the industry downturn in the
U.S., which at one point lost over
250,000 jobs among operators, service companies and other third-party
providers.
As for how this lands for President
Trump, it should be noted that the
large-scale practice of shale fracking
began during the George W. Bush era
with most of the oil coming online
late in the decade and in the early
2010s, peaking in 2013, followed by
the downturn in late 2014. This all
happened before President Trump
took office. One could glean from the
article that Mr. Mead is implying that
recent environmental relaxations by
the current administration has led to
the glut of oil and gas, which is not
the case.
LUCY PETTITT-SCHIEBER
Houston
Controlled Hunting Has
Boosted Species in the U.S.
Regarding the Dec. 8 letter from
Michael R. Harris of Friends of Animals: Managed hunting has been a
boon to endangered species. In the
U.S., private hunting ranches have
dramatically increased populations of
species that are critically endangered.
The scimitar-horned oryx, for example, was declared extinct in the wild
in 2000. Yet the species grew from 32
animals in Texas in 1979 to more than
Regarding Stephen Miller’s “Is
There a Cure for the Curating Craze?” 11,000 today. The population growth
from hunting operations has even en(op-ed, Dec. 13). As I pulled a pair of
abled the animal to be reintroduced
socks out of my curated sock drawer
to its native habitat.
this morning, I had a brilliant idea.
Controlled, legal hunting provides
Why not have Congress curate its
the resources and incentive to protect
2018 agenda. Maybe we could actually get some meaningful things done. endangered species and has done far
more than any animal-rights group
But perhaps we first need to curate
for conservation.
the list of candidates before the next
CHARLY SEALE
election.
PETER PRASTHOFER
Executive Director
The Woodlands, Texas
Exotic Wildlife Association
Kerrville, Texas
Maybe Congress Can Curate
A Reasonable 2018 Agenda
The Temporary Steel Tariffs
Worked as a Circuit Breaker
Regarding Donald J. Boudreaux’s
Dec. 13 letter on tariffs: The (temporary) George W. Bush steel tariffs
served well as a brake, much the way
the SEC circuit breakers are set up to
do for securities markets. The unfettered practice of any doctrine always
leads to tyranny. Thankfully our
Founding Fathers understood this.
DALE FRUMAN
Export, Pa.
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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
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“The most painful thing about the
breakup was my tattoo removal.”
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THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | A21
OPINION
The New Era of Global Stability
By Arthur Herman
Americans and others. Consider the
violent, seemingly endless wars in
Korea, Vietnam, Iraq and Afghanistan. These conflicts started as idealistic ventures and eventually tore
the country apart.
In the past century the world
has been subjected to a series of
isms—communism, progressivism,
socialism, Nazism and now Islamism. All swept the globe with an
ideological fervor to transform humanity and create a more perfect
world order. But this century of
ideological conflict has finally
spent itself.
The same shift governs North Korea. In 1950 the U.S. and Chinese
forces fought a bitter war of attrition on the Korean Peninsula. Today
the issue comes down to constraining a Chinese client state led by Kim
Il Sung’s grandson, whose sole goal
is remaining in power. Messrs.
Trump and Kim like to rattle their
nuclear sabers in public, but each
side carefully balances its strategic
interests, making a catastrophic war
less likely.
The trend is even more clear
among the Big Three. While Mr. Xi
clearly aspires to the autocratic
power of Mao, the goal of his “Chinese Dream” is not to breed revolutionary wars across Asia as Mao did.
Rather, he aims to preside over its
rise as a hegemonic power.
The same is true of Mr. Putin.
Despite his KGB background and
ruthless use of the police state
built by Lenin and Stalin, he is not
interested in reviving communism
or world revolution. The Russian
president simply wants to preserve
his own power and restore his
country’s ascendancy in Eastern
Europe. When he spoke in 2005 of
the fall of the Soviet Union as a
great tragedy, it was not because it
marked the end of Lenin’s dream of
Mr. Herman, a senior fellow at
the Hudson Institute, is author of
“1917: Lenin, Wilson, and the Birth of
the New World Disorder” (HarperCollins, 2017).
Alabama Disproves the Case Against Voter ID
n-
from the ballot, was impressive,
and it ought to inform the continuing debate about whether voter
identification requirements are tantamount to “voter suppression.” Mr.
Krugman might think so, but most
black voters disagree with him—as
do most whites, most conservatives
and even most liberals. A Gallup
poll last year put support for voter
ID laws at 80% among all groups,
including 95% of Republicans, 83%
of independents, 63% of Democrats,
81% of whites and 77% of nonwhites. In a 2012 survey published
by the Washington Post, 78% of
whites, 65% of blacks and 64% of
Hispanics expressed support for
voter ID laws.
Democratic Party officials and
media elites insist that asking people to prove their identities before
voting effectively disenfranchises
minorities, but most Americans understand the importance of ballot integrity. And if such laws make it too
difficult for blacks to cast a ballot,
what explains the Obamalike minority turnout for Mr. Jones, given that
Alabama implemented one of the
country’s toughest voter ID requirements in 2014?
Scaremongers liken voter ID laws
to the literacy tests and violence
used to intimidate black voters under
Jim Crow. But what happened last
week in Alabama is not uncommon.
Strict voter ID laws were passed in
Georgia and Indiana more than a decade ago, and in 2008 the Supreme
Court concluded that they are reasonable and constitutional. Subsequently, minority turnout increased
not only within both states but also
compared with other states that lack
no
If Democrat Doug
Jones had lost the
Senate contest in
Alabama last week
to Republican Roy
Moore, does anyone
doubt that the
UPWARD
MOBILITY state’s voter ID laws
would have been
By Jason L.
blamed?
Riley
Actually, we don’t
have to guess, because Election Day brought observations like this tweet from columnist
Paul Krugman: “Totally unclear who
will win AL. But it’s so close that if
Moore does win, voter suppression
will have made the difference.” The
comment received more than 6,900
“likes.”
As it happens, Mr. Jones won the
special election and did so with
more than a little help from black
voters. CNN exit polling showed
that blacks were 29% of the electorate, and 96% of them went for Mr.
Jones. That 29% matches Alabama’s
black vote share when Barack
Obama was elected in 2008 and is
slightly higher than in 2012.
Ultimately, however, white Alabamians made the difference last
week. Mr. Jones not only swept the
black vote but vastly outperformed
Mr. Obama among whites, which is
why he became the first Democrat to
win a U.S. Senate seat in Alabama in
25 years. Mr. Obama managed just
10% of the white vote in 2008 and
15% in 2012, and he lost the deep-red
state handily both times. Mr. Jones
won 30% of whites, which enabled
him to pull off the upset.
That said, the turnout among
blacks, given Mr. Obama’s absence
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T
he Tax Cuts and Jobs Act,
which the House passed
Tuesday, represents the biggest advancement for growth and
opportunity in recent memory. It
provides real relief to middle-income families and realizes policy
goals conservatives have sought for
decades.
The centerpiece of the bill is the
most sweeping pro-growth reform
of our tax code since the Reagan
era—perhaps ever. Once President
Trump signs it into law it will deliver more jobs, fairer taxes and
bigger paychecks for Americans
from all walks of life.
This is about helping a middle
class that has been squeezed by a
tax code that is expensive, complicated and skewed toward special
interests. Nearly 8 in 10 Americans
live paycheck-to-paycheck; nearly
half say a $500 surprise bill or
emergency would put them in
debt.
So will the economy, as the
bill brings U.S. corporate
taxes in line with the
developed-world norm.
ly
.
The world found new forms of
disorder: revolutions, insurgencies
and counterinsurgencies. Genocidal
civil wars continue unabated. Massive cultural, social and economic
disruptions have swept every corner
of the globe. And they have done so
in record time, thanks to information technology.
The emergence of Messrs. Putin,
Xi and Trump as the world’s three
most important leaders signals a
profound shift back to the world before 1917: an anarchic international
arena in which every sovereign state,
large or small, has to rely on armed
strength, diplomacy and alliances for
its security. Ideology no longer matters, but power does—and the big
powers inevitably dominate the
small. In this new era, might inevitably makes right.
This shift is already present at
the regional level. The defeat of Islamic State as a geopolitical presence in the Middle East is one indication. While Iran has not given up
its efforts to trigger a Shiite uprising against the region’s leading
Sunni powers, the realpolitik response from Saudi Arabia has been
to join forces with the once-despised
“Zionist entity,” Israel, to counter
Tehran’s bid for hegemony.
By Paul Ryan
Taxpayers will get significant relief soon. A family of four earning
the median income of $73,000 can
expect a $2,059 tax cut. The Internal Revenue Service has announced
that it will adjust its withholding
tables as soon as February. With
less money withheld, paychecks will
be bigger in a matter of weeks.
The bill significantly increases
the standard deduction, nearly
doubling the amount you can earn
completely tax-free. It also makes
taxes simpler, so that nearly 9 in
10 Americans will be able to file
their taxes on a form the size of a
postcard.
Middle-income families will benefit from the doubling of the child
tax credit to $2,000 a child. The
expansion of 529 college-savings
plans to elementary and secondary
education means more Americans
will be able to invest in their children’s futures.
This bill will also create jobs and
drive up wages. It cuts the highest
corporate tax rate in the industrialized world from 35% down to 21%,
below the developed-nation average. This will make American companies more competitive. By driving economic competitiveness,
lowering the cost of capital, and
moving to a territorial system like
most other countries, America will
once again become the best place in
the world to invest and build a
business. Jobs and capital will return from overseas, leading to more
demand for labor, higher wages and
bigger paychecks.
Relief is also coming for the
small businesses that are at the
heart of the economy. A new provision will enable job creators on
Main Street to deduct 20% of their
income. Small businesses will also
be able to write off immediately
the full cost of new equipment, giving them an incentive to expand
and hire more workers.
The bottom line is that this bill
will help you earn more and keep
more of what you earn. But that is
not all. The Tax Cuts and Jobs Act
achieves a historic trifecta of conservative policy goals. In addition
to tax reform, the bill eliminates
the ObamaCare individual mandate
penalty, the linchpin of the healthcare law, which forces people either
to buy insurance or pay a tax. And
for the first time, we will open up
the Arctic National Wildlife Refuge
for energy exploration and development, so we can harness these natural resources.
After years of stagnation and division, we are firmly and finally
choosing the path of growth. These
ideas will pave the way for an economic renaissance, as Americans
once again feel confident in their
future, and the country’s too. Economic growth will not solve all our
problems, but it will make our problems much easier to solve.
Moments like this come along
once in a generation. This is conservative reform at its best: applying our founding principles of
liberty, limited government and
free markets to the most pressing
challenge of the day. We are delivering relief to those who have
struggled for too long under an
antiquated system. And we are
keeping our promise to the American people by giving them the tax
cut—and tax code—they need and
deserve.
co Fo
m rp
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er rs
ci on
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on
The grand ideological
conflicts that began
in 1917 are giving way to
old-fashioned geopolitics.
DAVID GOTHARD
A
fter a century of chaos
and mass death driven
by conflicting ideologies, the world is entering a new era of
stability. This new period of history is defined by the balanceof-power geopolitics embraced
by Xi Jinping, Vladimir Putin
and Donald Trump. The White
House National Security Strategy published Monday appears
to reflect this reality.
The previous era was inaugurated by two momentous
events: President Woodrow Wilson’s decision to intervene in
World War I and Vladimir
Lenin’s Bolshevik Revolution.
Both occurred in 1917 and left
overlapping legacies. In Lenin’s
case, Russia’s communist revolution would spawn countless
ideological imitators, leading to
the deaths of tens of millions of
people.
Wilson’s legacy was to transform the U.S. into a superpower that
could save the world from fascism in
World War II and from Soviet communism in the Cold War. But Wilson’s belief that America had a divine mission to make the world
“safe for democracy” would occasionally bring a terrible cost for
world communism. He was lamenting the eclipse of Russia
as a superpower—which he is
determined to reverse.
This same reversal of ideological fortunes applies to Mr.
Trump, although the revolution
he is ending is Wilson’s. As the
new National Security Strategy
states: “We understand that the
American way of life cannot be
imposed on others, nor is it the
inevitable culmination of progress.” This is as un-Wilsonian a
pronouncement as any president
has made in decades. He instinctively understands that American idealism didn’t save the
world from Hitler and communism. American military and
economic power did. In Mr.
Trump’s view, we live in a world
governed by the material correlation of forces, which he believes the U.S. needs to adjust in
its direction by exerting military
and economic power.
Some will say that this threeway rivalry is causing tension,
risking another world war. I doubt it.
In this new era, friction and competing interests will be seen as natural.
The National Security Strategy continues: “Competition does not always mean hostility, nor does it inevitably lead to conflict.” But
conflict can be stopped short of war,
thanks to the balance of opposing
forces and the power of economic
and military deterrence.
This is the world of Otto von Bismarck, who said in 1862: “The great
questions of the time are not decided
by speeches and majority decisions
. . . but by iron and blood.” As in Bismarck’s day, Mr. Trump’s goal will be
stability, not perfection; competition,
not consensus. Indeed, “an America
that successfully competes is the
best way to prevent conflict.” It isn’t
an era that will make idealists or humanitarians happy. But for all its imperfections, after a century in which
ideologues and fanatics have killed
and maimed tens of millions trying
to make the world a perfect place,
are we likely to do worse?
Tax Reform
Means Your
Paycheck
Will Grow
William Lewis
Chief Executive Officer and Publisher
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voter ID laws. Similarly, black voter
registration and turnout remained
level in Texas and went up in North
Carolina after those states implemented voter ID mandates.
In the 2012 presidential election,
blacks voted at a higher rate than
whites nationwide, even as more
states were passing these supposedly
racist laws. In 2016 the percentage of
the black vote declined for the first
Liberals were ready to
blame Jones’s defeat on
‘suppression.’ Then black
voters helped him win.
time in 20 years in a presidential
election, but Hillary Clinton’s losses
in swing states like Ohio and Pennsylvania had more to do with voter
apathy than voter ID. After all, Mr.
Obama won those states. Twice.
Voter ID laws don’t keep blacks
from casting ballots any more than
they keep blacks from cashing paychecks. The problem for Democrats
isn’t with these identification requirements but with giving their
black base a reason to come out
and vote. It turns out that when
blacks are sufficiently motivated,
they have no problem making their
voices heard at the ballot box,
even in states with strict voter ID
laws.
Nevertheless, don’t expect Democratic leaders to stop peddling these
voter ID myths. The issue gives
them a way to smear Republicans as
racist, and liberals have an abiding
belief that racial polarization is
good politics. Unfortunately, we now
have a Republican counterpart in
President Trump, who inherited a
racially divided country from his
predecessor and has only made
matters worse by, among other
things, embracing right-wing populists like Roy Moore.
Meantime, the black unemployment rate has fallen to 7.3% from 8%
in the past year, and black laborforce participation has increased.
Among Hispanics, the jobless rate
has dropped by a full percentage
point, to 4.7%, over the same period, while labor-force participation
has held steady. This is what the
Trump economy is doing for minorities. If more people aren’t talking
about it, perhaps the president’s
preoccupation with identity politics
is to blame.
Notable & Quotable: Theater
From a HeterodoxAcademy.org interview with linguist John McWhorter, Dec. 14:
When you say political theater,
you’re not so much concerned with
the theatrical aspect per se as you
are with the idea that the goal of
the political theater is to make
certain ideas anathema. Is that
correct?
McWhorter: Definitely. When I say
theater, yes, there’s theater in any
kind of protest. The very fact that
you’re making a loud noise in a public forum is theater. The very fact
that you’re trying to attract people’s
attention who otherwise would not
be inclined to give it, that’s theater.
That’s part of politics.
But there’s a particular theatrical aspect to all of this [on campus] in that I find it simply incoherent—it’s not believable—that a
psychologically healthy person and
one intelligent and ambitious
enough to have gotten into a selective school, in particular, is somebody who is constitutionally unable
to bear hearing somebody express
views that they don’t agree with,
or that they even find nauseous.
It’s one thing to find views repugnant. It’s another thing to claim
that—to hear them constitute a
kind of injury that no reasonable
person should be expected to stand
up to. That’s theatrical because it’s
not true. Nobody is hurt in that
immediate, lasting and intolerable
way by some words that a person
stands up and addresses, in the abstract, to an audience at a microphone. . . .
To claim that is a kind of theater
in itself. You are pretending—and
that really is the only appropriate
word—you’re pretending that
something that you find unpleasant
to behold is injurious. And I think
that the theatricality of that kind
in the argument is a response in
part to the fact that to make your
case otherwise—that somebody
just shouldn’t be heard—is difficult. You have to pretend that it’s
hurting you like a punch in the
stomach, because otherwise it becomes a little inconveniently transparent that, really, you’re just insisting that you have your own way
because you’ve decided that a certain way of thinking is what’s on
the side of the angels.
Mr. Ryan is speaker of the House.
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A22 | Wednesday, December 20, 2017
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TECHNOLOGY: BLACKBERRY TRIES TO GRAB THE WHEEL IN AUTONOMOUS CARS B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2681.47 g 0.32%
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Wednesday, December 20, 2017 | B1
THE WALL STREET JOURNAL.
* * * *
DJ TRANS À 0.13%
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LIBOR 3M 1.642
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Deals Boom in Health Industry
Managed-care firms
aim to wring out costs
by backing treatment
outside hospitals
BY ANNA WILDE MATHEWS
AND MELANIE EVANS
A recent burst of deal-making among health-care companies is set to accelerate the
shift in how and where Americans get medical care—away
from hospitals and toward
clinics, doctors’ offices, surgery centers and even drug-
stores.
Potential mergers disclosed
since early December involve
companies with more than
$550 billion in cumulative revenue, a sign of how much of
the industry is caught up in efforts to reshape the landscape.
Tuesday, Humana Inc. and
two private-equity firms confirmed they plan to acquire
Kindred Healthcare Inc. in a
deal valued at around $810
million, or $4.1 billion including debt. They intend to split
the health-care company in
two, hiving off its long-term
care and rehabilitation hospi-
tals from its other business.
The same day, Tenet
Healthcare Corp. announced it
is exploring a sale of its
health-care business-services
arm, Conifer Health Solutions,
amid pressure in its core hospital unit.
“The industry is going
through a version of upheaval,” said Kindred Chief
Executive Benjamin A. Breier.
“Providers across the country
are trying to figure out what
their place in the world is going to be.”
The moves underscore the
shift in power as health-care
companies look to drive down
costs and change how and
where patients get care.
Managed-care companies
such as Humana, which will
have an ownership stake in
Kindred’s home-care and hospice unit but not in its facilities, are going deeper into the
business of delivering health
care outside hospital walls.
They are seeking to squeeze
out costs by speeding up the
decline in hospital use, which
is already under way.
CVS Health Corp., with its
roughly $79 billion acquisition
of Aetna Inc., wants patients
Marketer
Takes
Throttle
At CSX
to stay out of emergency
rooms and do more at revamped, upgraded drugstores.
UnitedHealth Group Inc.’s
$4.9 billion purchase of DaVita Inc.’s doctor group is part
of a plunge into owning physician practices, clinics and outpatient surgery centers.
The trend puts hospital
companies on the defensive.
Some are bulking up to form
ever-larger players; nonprofits
Ascension and Providence St.
Joseph Health are in talks to
create the biggest hospital
owner in the U.S., while DigPlease see DEALS page B2
BY PAUL ZIOBRO
Fintech Startups Shake Up Money Transfers
Biggest remittance-sending countries
2016 estimates, in billions
U.S.
$138.2
9.0%
8.9%
Average cost of sending $200
At the end of September
each year
Saudi Arabia
$44.0
United Arab Emirates
7.9%
$31.1
7.5%
7.5%
7.2%
U.K.
$25.4
Canada
$23.3
Busiest remittance corridors
2016 estimates, in billions
Cost by type of service
September 2017
Banks
U.S. to Mexico
11.0%
$28.1
U.S. to China
$15.4
U.S. to India
Money-transfer
operators
6.1%
Mobile money
3.1%
$12.6
U.S. to Philippines
$10.5
U.S. to Guatemala
$6.8
2012
’13
Source: World Bank
’14
’15
’16
’17
THE WALL STREET JOURNAL.
HEARD ON THE STREET | By Justin Lahart
The One Tax Change That Really Bites Businesses
n-
interest expense companies
can deduct from their taxes
is limited to 30% of a measure known as earnings before interest, taxes and depreciation and amortization,
or Ebitda, through 2021.
After that it switches to a
more restrictive measure approximating earnings before
interest and taxes, or Ebit.
(The new limits don’t apply
to some businesses, such as
regulated public utilities.)
That will boost taxes for
companies with lots of depreciation or amortization,
mainly those with lots of assets such as factories.
no
The Republican tax plan
is good news
for nearly all
companies.
But one element of it will fundamentally
change the way businesses
think about financing themselves, and could put some
at a disadvantage. The new
rule also gets tougher after
2021, adding a layer of complexity for businesses.
The provision targets interest payments, which companies have historically been
able to deduct on their taxes.
Under the bill, the amount of
INSIDE
The initial impact of the
change looks modest. Duke
Fuqua School of Business
economists John Graham
and Young Jun Song calculated that public companies
hit by the rule would have
lost just 5% of their interest
deduction last year.
But that figure is driven
by large companies for
which interest payments
tend to be a small portion of
profits. When the economists
looked at companies on an
equal-weighted basis—which
puts small companies on the
same footing as big ones—
they found that the typical
company would lose 41% of
its interest deduction. Industries that use more debt financing, such as health-care
providers and drugmakers,
also could be more affected.
The hit could become
more pronounced in the
years to come. Not only will
the shift to the Ebit measure
in 2022 be more onerous,
but higher interest rates
could push companies’ interest expense higher. Corporate bond yields are near 60year lows—a situation that
may not last as the Federal
Reserve raises rates and
other central banks rein in
stimulus programs.
The rule change will
change a longtime fixture of
corporate finance: that debt
is a more attractive way for
companies to raise cash than
selling stock. Now some
companies will be less willing to borrow and may issue
stock, which would reduce
earnings per share. Companies would be less likely to
borrow to fund share buybacks and dividend payments. Or they could dial
back expansion efforts, and
grow less as a result. None
of those would be particularly shareholder friendly.
HIGH-SPEED
TRADING CASE
GETS GO-AHEAD
MARKETS, B7
BHP Billiton Ltd., the
world’s largest Western mining company, is threatening to
leave the World Coal Association and U.S. Chamber of Commerce over disagreements on
climate policy, the latest commodity firm to react to pressure on global warming.
The British-Australian company on Tuesday said it disagreed with the association’s
call for Australia to abandon
its clean-energy targets and
promote the use of loweremission coal.
BHP itself has cut back on
coal production in recent
years, but remains among the
world’s biggest coal producers.
The company said Tuesday
it differed from the Chamber
of Commerce’s characterization of the Paris climate
agreement as ineffectual and
the business group’s opposition to taxing carbon emissions.
“We believe the Paris
Agreement provides a solid
long-term foundation for fur-
CARLA GOTTGENS/BLOOMBERG NEWS
RETAIL, B3
James Foote
has suddenly
inherited the
daunting task
of overhauling
the railroad’s
operations.
Foote. “For CSX, which is embarking on an operational
transformational change, you
want someone with operations
[experience] in charge.”
Mr. Foote already had plenty
on his plate. It was considered
unusual for a railroad chief operating officer to also take on
marketing responsibilities, and
the two executives who resigned, operating chief Cindy
Sanborn and marketing head
Fredrik Eliasson, both had decades of experience at CSX and
were among the leaders being
considered for the top job before Mr. Harrison was appointed.
Mr. Foote had said that he
spent about 70% of his time
during his first weeks at CSX
on marketing. After he was
named acting CEO, he said the
split would be more even between marketing and operations.
A CSX spokesman on Monday declined to say whether the
company would hire a search
firm to find a permanent replacement for Mr. Harrison or
other departed executives. The
company’s chairman, Edward
Kelly, said in a statement Saturday that the board “will continue to consider in a deliberaPlease see CSX page B2
BHP Chides Coal Association on Climate Policy
BY ADAM CLARK
MOM AND POP
SHOW MALLS
THING OR TWO
After the death of CSX Corp.
chief Hunter Harrison, all eyes
are on his successor, a lawyer
with a long marketing resume
who must now direct an operational overhaul of the railroad.
Jim Foote, 63 years old, was
named acting chief executive
last week when CSX said Mr.
Harrison was taking a medical
leave of absence, and he remains in the position following
Mr. Harrison’s unexpected
death at the age of 73 on Saturday. Mr. Foote joined CSX in
October as operations chief, replacing also the chief sales-andmarketing officer, having previously worked for Mr. Harrison
at Canadian National Railway
Co. as head of sales and marketing.
Some analysts are concerned
that CSX is in need of a clearer
succession plan and reinforcements for a depleted management team, particularly in operations roles.
“We’re not saying he’s not a
capable executive,” Cowen analyst Jason Seidl said of Mr.
ly
.
The race is on to become
the top global app for international money transfers.
Fintech startups including
WorldRemit Ltd., TransferWise Ltd. and Remitly Inc. are
pulling ahead of the pack of the
dozens of companies trying to
disrupt the remittance industry, using the latest technology
to send money internationally.
More than $600 billion is
remitted world-wide every
year, mostly by migrant workers from places like India,
Mexico and the Philippines,
who have traditionally had to
deal with long lines and high
fees to send money home.
The startups are competing
to build trust in their brands
and the best transfer technology, using everything from digital wallets to bitcoin in hopes
of becoming the Uber or Airbnb
of the remittance industry.
WorldRemit is using fintech
to take business from the traditional money-transfer giants
like Western Union Co. and
MoneyGram International
Inc., said Alix Murphy, director
of mobile partnerships at the
London company.
“These are companies that
Please see REMIT page B4
As new players step into the market, the
cost of sending funds across borders
is coming down.
co Fo
m rp
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er rs
ci on
al a
us l,
e
on
BY CORINNE ABRAMS
See more at WSJMarkets.com
BHP Billiton, one of the world’s biggest coal producers, expressed support for the Paris Agreement.
ther progress in the global response to climate change,”
BHP said. The company
pledged earlier this year to review its memberships in industry associations that hold
public stances on climate and
energy policy.
BHP’s
announcement
comes as the world’s biggest
energy companies are trying
to present themselves as part
of the solution for governments and consumers demanding more environmentally friendly energy.
A consortium of 10 big oil
companies, including Royal
Dutch Shell PLC, BP PLC and
Saudi Arabia’s national energy
firm, formed the Oil and Gas
Climate Initiative to collaborate on reducing greenhousegas emissions. Exxon Mobil
Corp. last month joined Shell
and six other major oil companies in moving to reduce
pollution from natural-gas
production.
Other big mining companies like Rio Tinto PLC and
Anglo American PLC have
said they support the Paris
agreement’s global commitments and goals. Glencore
PLC has said it recognizes its
responsibility to address climate change as a factor that
will affect its business.
In response to BHP’s announcement, the World Coal
Association expressed disappointment and said BHP’s review didn’t accurately reflect
its views. The London-based
association is a global lobbyist
for coal producers, with its
members—including Anglo
American and Glencore—accounting for 20% of the
Please see BHP 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 | Wednesday, December 20, 2017
NY
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.
C
CBL & Associates
Properties.................B9
Cboe Global Markets..B7
Centene.......................B2
China Southern Airlines
...................................A14
Citigroup.......B6,B14,B15
CloudWalk Technology
...................................A14
CSX..............................B1
CVS Health..........B1,B15
D-E
DaVita ......................... B1
DDR ............................. B9
Exxon Mobil................B1
F-G
Facebook......................B4
Fairfax Financial ......... B4
FedEx...........................B3
H
Harman International.B4
Heico ........................... A2
HSBC Holdings..........B15
Humana.......................B1
I-J
Ineos..........................B14
InstaReM.....................B4
Jack in the Box...........B3
J.C. Penney..................B9
JPMorgan Chase..B6,B14
K-L
Kimco Realty...............B9
Kindred Healthcare.....B1
Lam Research ........... B15
Lemonade....................B3
M
Macy's.........................B9
Marathon Oil.............B15
Merrill Lynch...............B7
Micron Technology....B15
MoneyGram
International.............B1
Morgan Stanley...B6,B14
Munich Re...................B4
N-P
Nedbank Group.........A12
NiceHash...................B15
Noble Energy ............ B15
Nomura Holdings
........................... B14,B15
PacSun.........................B3
PayPal Holdings........B15
Primecap Management
.....................................B4
Q-R
Qualcomm.................B15
Remitly........................B1
Rio Tinto ..................... B1
Rosneft......................B14
Royal Dutch Shell.......B1
S
Sam's Club..................B3
Samsung Electronics
............................. B4,B15
Sears Holdings............B9
SoftBank Group..........B3
Southern ..................... B2
Steinhoff International
Holdings..................B15
Stitch Fix...................B14
T
Tata Motors................B4
Tenet Healthcare........B1
TransferWise .............. B1
Trov..............................B4
U
Uber Technologies ...... B4
Unibail-Rodamco.........B8
UnitedHealth Group....B1
W
Wal-Mart Stores.......B15
Washington Prime......B9
Waymo........................B4
Wells Fargo.................B6
Western Union............B1
Westfield.....................B8
WorldRemit.................B1
X-Y
Xiamen Meiya Pico
Information.............A14
Yapian........................B15
INDEX TO PEOPLE
B
H
O
Harrison, Hunter.........B1
Haworth, Rob............B15
Oppenheimer, Matt....B4
Ostrower, Matthew....B9
F
Fellahi, Khalid.............B4
Foote, Jim...................B1
G
Garrett, Scott ............. B6
Gofshteyn, Ilya ......... B14
Guay, Wayne.............B13
R
Rear, Andrew..............B4
Rounds, Mike..............B6
L
Lake, Katrina.............B14
Lautenschläger, Sabine
...................................B14
Lee, Charlie...............B16
Lowy, Peter.................B8
Lukes, David................B9
M
Miller, David................B8
Murphy, Alix ............... B1
N
Neidorff, Michael F.....B2
CSX
ADVERTISEMENT
The Mart
S
Scott, Tim...................B6
Song, Jimmy.............B16
Steele, Glenn .............. B2
Sweeney, Ian...............B4
T
Toomey, Pat................B6
U
Umberger, Dianne.......B8
W
Walchek, Scott ........... B4
Wang, Rachel............B14
Werner, Matthew.......B8
Wiese, Christo..........B15
schedules, a change that should
ensure more timely deliveries
and better use of locomotives.
“Jim knows a hell of a lot
more about operating precision
scheduled railroad than some
have given him credit for,” Mr.
Harrison said at an investor
conference on Nov. 29. “He’s
got a unique talent on the marketing and sales side and happens to be a team builder, and
that’s one of the things that we
really need now.”
CSX has brought in outside
help to continue implementing
the plan, hiring about a dozen
operating executives from
other railroads and placing
them in jobs overseeing train
yards and other aspects of the
network. About 150 CSX executives have also participated in
“Hunter Camps,” workshops
where Mr. Harrison taught his
railroad philosophy.
While the first phase of Mr.
Harrison’s turnaround involved
seismic changes to the system,
CSX’s next step is following
through on the plan. Justin
Long, a transportation analyst
at Stephens Inc., said that Mr.
Foote’s marketing background
is needed “to reassure customers this change in both the operating philosophy and management
team
will
be
successful.”
no
Continued from the prior page
tive way how best to maximize
CSX’s performance over the
long term.”
Mr. Foote, a University of
Wisconsin-Superior graduate
with a law degree from John
Marshall Law School in Chicago, has spent 40 years in the
railroad industry, but most of
his time in sales and marketing.
In 1995, he joined Canadian
National Railway where he
eventually worked alongside
Mr. Harrison, who ran the railroad from 2003 to 2009. Mr.
Foote was the chief sales and
marketing officer while Mr.
Harrison rolled out what he
called precision-scheduled railroading at the company.
Before joining CSX, Mr.
Foote was chief executive of
Bright Rail Energy, a startup
developing natural-gas power
for locomotives.
Mr. Harrison and Mr. Foote
had previously said they had
the right team in place at CSX
to implement precision railroading.
At its core, precision scheduled railroading seeks to run
fewer trains on longer routes
and stick more closely to
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Georgia Nuclear-Power Vote Nears
The Atlanta airport blackout could hardly have come at
a worse time for Southern Co.
subsidiary Georgia Power.
Days after the outage,
which authorities say appears
to have been caused by a fire
in a piece of Georgia Power
equipment, state utility regulators on Thursday are set to
decide the fate of a half-finished nuclear plant the company is building that is billions
over budget.
With memories of massive
travel delays still fresh in the
minds of many Georgians, five
elected officials on the state’s
public-service commission will
decide whether the company
should be allowed to pass on
to electricity customers cost
overruns from adding two reactors to the Alvin W. Vogtle
Electric Generating Plant.
Georgia Power has vowed
to go on with the project,
which would be the first new
nuclear reactors built in the
country in more than three decades, despite projected completion costs that have soared
to about $25 billion, from an
initial estimate of $12.5 billion. But the company has said
it could drop the project if it
doesn’t get the approval to
share the added burden with
utility customers.
Georgia Power Chief Executive Paul Bowers said Monday
the nuclear vote and the airport blackout were “separate
issues” and he didn’t think one
would affect the other.
Thousands of jobs and billions of dollars in future electricity bills will be determined
by the nuclear-plant decision.
Commissioner Tim Echols
tweeted on Sunday morning
that it would be “the biggest
and most important vote” in
his seven years on the commission, and added that “shut
it down” was the most common message he was getting
from Georgians.
That was before the 11-hour
blackout Sunday shut the airport, dominating the state’s
news and political discourse.
The blackout left thousands of
passengers stuck on planes for
hours or unable to get home.
Company officials said it appeared that electrical equipment owned and operated by
Georgia Power caught fire.
If the members of the Public Service Commission approve, as much as 10% of
Georgia Power customer bills
could go toward building the
nuclear-power plant.
Earlier this year, two South
Carolina utilities building an
identical nuclear-power plant
decided to abandon construc-
co Fo
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D
Donnelly, Jeffrey ........ B8
K
Kilduff, John ............. B14
Krafcik, John...............B4
Käärman, Kristo..........B4
Kvaal, Jeffrey............B15
n-
C
The Vogtle nuclear plant’s construction site last year. Georgia Power wants to share cost overruns from the project with customers.
BY RUSSELL GOLD
Boxer, Leonard............B8
Bozzetti, Domnick....B13
Breier, Benjamin A.....B1
Broussard, Bruce ........ B2
Brown, Sherrod...........B6
Carey, Kathleen...........B2
Cooper, Josh................B3
Coughlin, Patrick.........B7
Coupland, Todd............B4
JOHNNY EDWARDS/TNS/ZUMA PRESS
B
Bank of America
........................ B6,B7,B15
BHP Billiton................B1
BlackBerry...................B4
BNP Paribas..............B15
Boeing ......................... B6
BTC Korea.Com.........B15
Ford Motor..................B4
General Electric .......... B6
General Motors...........B4
Glencore ...................... B1
Goldman Sachs Group
...................... B6,B14,B15
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
BHP
Continued from the prior page
world’s coal production.
“The WCA has always supported a balanced approach
that integrates climate and energy policy, working toward a
low-emission future for coal.
We hope to be able to continue working with BHP on
this basis in the future,” said
the association’s chairman,
Mick Buffier.
The U.S. Chamber of Commerce said it looked forward
to discussing the issues with
BHP.
“The chamber believes that
the climate is changing, and
that man is contributing to
these changes,” the group said
in an email. “We also believe
that technology and innovation, rather than unachievable
federal mandates, offer the
best approach for reducing
DEALS
Continued from the prior page
nity Health and Catholic
Health Initiatives announced
they are forming their own
nonprofit hospital giant.
Hospital systems seek heft
to cut costs and do battle with
managed-care firms over their
future role and payment rates.
Meanwhile they continue to
invest in their own outpatient
settings, looking to capture
more of the patients their
main facilities may lose.
At the same time, some
hospital owners need to shore
up their finances, as is the
case with Kindred, which is
weighed down by debt. Tenet
also has a heavy debt load, in
part from a 2013 acquisition of
a rival hospital firm.
On the hospital side,
“they’re basically increasing
their leverage” in negotiations
with insurers by forming everlarger systems, said Glenn
Steele, former CEO of Geisinger Health System, a large
integrated hospital and healthplan operator. “If they get big
enough, they have to be part
of any care-giving network.”
Hospitals have been suffering a slow bleed for years. U.S.
hospitalizations began to drop
around 2009, partly tied to the
effects of the economy’s
downturn, and were reversed
for a time by the expansion of
insurance under the Affordable Care Act. Admissions increased in 2014 and 2015.
But hospitalizations de-
Energy Issues
Coal is among the most polluting of major sources of fuel.
Pounds of carbon dioxide emitted per million British thermal units
210
Coal*
Kerosene
159
Gasoline
157
Butane
143
Propane
139
Natural Gas
117
THE WALL STREET JOURNAL.
*All types Source: Energy Department
greenhouse gas emissions and
mitigating the impacts of climate change.”
The chamber has warned
that U.S. commitments under
the Paris agreement could
raise energy prices for Americans. President Donald Trump
has said he would end the
American commitments made
at the Paris agreement if he
couldn’t renegotiate terms.
BHP said its position on
leaving the World Coal Association was preliminary and it
invited the group to respond
by March 31 before it makes a
final decision on membership.
Similarly, it intends to talk
with the Chamber of Com-
Losing Patients
Hospital use declined last year, resuming a trend interrupted in
2014-15 by the Affordable Care Act, as growth in the ambulatorycare sector is creating new competition.
Annual change in hospital
discharges
Annual revenue for
ambulatory-care services
$1.0 trillion
1.5%
1.0
$968B
0.8
0.5
0
0.6
0
–0.5
0.4
t0.6%
–1.0
0.2
–1.5
–2.0
2006 ’08
’10
’12
’14
’16
Source: U.S. Census Bureau estimates
clined last year, U.S. Census
Bureau estimates show. Despite an aging population,
with baby boomers rapidly
hitting Medicare age, the number of hospital discharges
dropped by 0.6%, or 229,000.
Hospitals have responded
by rapidly expanding outside
their facilities, investing in
outpatient surgery centers, occupational-health clinics and
urgent-care centers. “They
want to get more involved in
where the action is,” said
Kathleen Carey, a professor in
the Boston University School
of Public Health.
Other factors behind the
shift away from in-hospital
care include evolving medical
tion plans, leaving behind several billion dollars worth of
construction that might never
produce a single kilowatt.
Earlier this month, Georgia
employees examining the Vogtle project said the Georgia Power plant was “uneconomic” and recommended
stopping work on it.
Georgia Power, which provides electricity to 2.2 million
customers in the state, has argued it should be allowed to
finish the power plant. Many
of the cost overruns and delays, it has said, were related
to a previous construction
consortium led by Westinghouse Electric Co.
Rising costs led Westinghouse, part of Toshiba Corp. of
Japan, to seek bankruptcy protection earlier this year, leading an affiliate of Georgia
Power to take over the power
plant’s construction.
ly
.
A
Aetna...........................B1
Alphabet......................B4
Anglo American..........B1
Ant Financial Services
Group.........................B4
Apollo Global
Management.............B3
Apotex.........................B3
Apple....................B4,B15
Aptiv............................B4
Aéropostale.................B3
0
2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16
THE WALL STREET JOURNAL.
practice and technology that
enable more procedures and
other care to be done on an
outpatient basis. Insurers and
employers have sought to advance the trend, including
with health-plan designs and
rules that try to prod consumers away from hospitals.
“Right care, right place,
right time, for the right reason,
at the right cost,” said Sheryl
Skolnick, an analyst at Mizuho
Securities. “High-cost inpatient
facilities are the loser, oftentimes, in that scenario.”
Shifts in federal health-care
approaches also play a role.
Kindred has been challenged
by Medicare payment policies
that hurt its long-term-care
merce, while “considering” its
continued membership in the
Washington-based group.
BHP said it also identified
differences with the Minerals
Council of Australia, but has
decided to remain a member
of the body. However, the
company said it would request
that the council refrain from
policy activity in areas where
their views diverge and that it
would review its membership
if that doesn’t happen.
The Australasian Centre for
Corporate Responsibility, a
nonprofit group that advises
on ethical investments, offered
tempered praise for BHP’s announcement.
Executive Director Brynn
O’Brien criticized the company
for staying in the Minerals
Council of Australia but called
its overall message “an emphatic market signal that the
era of aggressive anti-climate
lobbying is no longer acceptable.”
hospitals. More broadly, a rising share of Medicaid and
Medicare beneficiaries are
now enrolled with a managedcare company, rather than getting their coverage directly
from the government. About a
third of eligible Medicare beneficiaries are in Medicare Advantage plans offered by companies such as UnitedHealth
and Humana.
That is giving insurers
greater influence as they aim to
move care away from hospitals
and hold down cost. Thanks
partly to technology, “it’s moving into the outpatient setting,”
said Michael F. Neidorff, chief
executive of Centene Corp., a
major Medicaid managed-care
company. Using data analysis
and other tools, his company
aims to “prospectively identify
disease states before they become an issue.”
Companies like UnitedHealth
and Humana are going further,
investing in health-care providers. Humana said it would initially own 40% of Kindred’s
home-health and hospice business, which has annual revenue
of approximately $2.5 billion.
Kindred is the biggest U.S.
home-health operator. Humana
already owns some home-care
providers.
“We believe that care in the
home is a vital element of improving the health of seniors
living with chronic conditions,
allowing them to receive services in the comfort of their
home, with less time in morecostly institutional settings,”
said Humana CEO Bruce
Broussard in a statement.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B3
BUSINESS NEWS
Apotex’s
Founder
A Battler
And Giver
Click, Click, Click
Growth in online spending, change from a year earlier
70%
LAUREN JUSTICE FOR THE WALL STREET JOURNAL
60
TORONTO—As homicide
detectives investigate the
deaths of generic-drug magnate Barry Sherman and his
wife, Honey, the couple’s
friends and associates remembered a driven man who do-
Santa wasn’t busy on a recent Saturday at the Wausau Center Mall. Sears and J.C. Penney have left.
Barry Sherman
fought the world’s
biggest drugmakers to
defend his generics.
A search of the Federal
Court of Canada lists more
than 400 cases involving Apotex dating to 1996. The company has also been involved
in about 100 appeals to the
Supreme Court of Canada, of
which more than a dozen
were against the federal government. Recently, Apotex’s
foes have included AstraZeneca PLC, Abbott Laboratories
and Allergan PLC.
The death of Mr. Sherman
has raised questions about
the future of the company because he was deeply involved,
a person close to Apotex said.
Some close to the company
have questioned whether Mr.
Sherman’s son Jonathon, who
previously worked at Apotex
but left to run a brewery, will
return to take over the company, or if it will be sold.
“As a private company, we
do not release information
about its ownership, a
spokesman for Apotex said.
40
s50%
30
Wisconsin
20
U.S.
s34%
s25%
10
0
J
F
M
A
M
J
J
A
S
O
N
*Marathon, Lincoln, Taylor, Clark, Wood, Portage, Waupaca, Shawano, Langlade
Source: Slice Intelligence
THE WALL STREET JOURNAL.
Lots of Shopping, Except at Mall
Wausau, Wis., residents
embrace e-commerce
but also rediscover
mom-and-pop boutiques
BY VALERIE BAUERLEIN
loan and the keys to the lender.
Wausau shows how an economically thriving community
might shop in a post-mall age.
No longer are shoppers willing
to drive distances to hit a
clothing retailer. That is an
online task. They are willing,
however, to make an event of
going downtown, to the compact shopping district where
two-story brick buildings line
the streets, to patronize Wausau’s local boutiques.
The Pew Research Center
has identified Wausau, a former timber hub roughly halfway between Minneapolis and
Milwaukee, as the U.S. community with the highest percentage of middle-income
households, defined as a
three-person household with
an annual income of about
$42,000 to $125,000.
On 3rd Street, the bell
chimed at The Local every few
minutes one recent Saturday
afternoon, signaling a customer coming in to check out
Wisconsin-made Christmas
wreaths, coasters cut from
pine trees and candles in recycled beer bottles.
Owner Alison Magnuson, 26
years old, said shoppers her age
want something they can’t find
just anywhere. She got the idea
to open a physical store with
products handmade by more
than 30 local artists after selling her own work on the online
crafts marketplace Etsy Inc.
“People want that momand-pop store again,” she said.
“It’s all coming full circle.”
The numbers back up Ms.
Magnuson’s experience. Based
on data from payments processor Square Inc., sales at
small-business sellers in Wausau that use its system rose
35% over the past year while
the number of sellers remained constant. That shows
“just how much these small
businesses are thriving,” according to Square.
Mike Fondow said he can’t
remember the last time he
went to a mall. The 33-year-old
computer-network specialist
split this year’s Christmas
shopping between online for an
electric blanket and car floor
mats, and locally owned shops
for books and fermented black
garlic. His favorite find was a
sampler of Wisconsin-sourced
teas for his mom, which he
picked up at a farmers market.
“I like supporting the local
businesses, and the downtown
has more unique shops,” Mr.
Fondow said.
Wausau has become a
mecca for door and window
manufacturers and workers’
compensation insurers. Incomes from its mix of blue-
collar and white-collar jobs
are slightly higher than the
national average, and unemployment is lower.
Greg Maloney, retail CEO at
real-estate firm Jones Lang
LaSalle, which owns malls nationwide, said shoppers in the
rural Midwest are changing
their habits faster than others
in the U.S.
“When you get into rural
America, you’re looking at 35
to 40 minutes of driving” to
30%
The city’s shoppers spend this
much above state, national averages.
co Fo
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WAUSAU, Wis.—The mall is
failing in the most middleclass city in America, and it
isn’t because its 39,000 residents don’t shop.
Shoppers here spend about
30% more than state and national averages, according to
the Census Bureau. Sales-tax
receipts have grown 20% in
the county since 2011, and city
officials say there isn’t one vacancy in Wausau’s downtown
shopping district.
But shoppers are spending
relatively little at Wausau
Center, the shopping center at
the edge of downtown and the
only enclosed mall for 70
miles. Sears closed there last
year, and J.C. Penney left in
2014. So, too, have teen retailers PacSun and Aéropostale,
Payless shoe store and even
the Green Bay Packerland Plus
superstore (though Packerland
reopened 10 miles away).
Mall owner CBL & Associates Properties Inc. walked
away from the property last
year, returning an $18 million
sin and 25% nationally.
The Wausau Center mall is
still open for business, and its
current owner has added a
fossil collection, a school-technology center and a children’s
museum in formerly empty
storefronts to help foot traffic.
The mall has a remaining department store, Younkers, a
unit of Bon-Ton Stores, Inc.
Retired accountant Russ Erickson recently opened a temporary shop there—Uff Da!, a
Norwegian slang word similar
to “good grief.” He sells old
postcards, replicas of CocaCola signs that he buys online
and his hand-carved wooden
signs—“RV there yet?” and
“Didja bring da beer?”
“It’s got to be something
that you can’t click on Amazon
and get,” he said.
Mr. Erickson is encouraged
by business so far and has
hired two employees. But he
said he hopes the mall can fill
up with other uses, such as a
business office or movie theater, to bring in enough people
to sustain his shop.
He said he knows the clock
is ticking, based on his family’s own shopping habits and
the boxes on his doorstep. “My
wife goes to Target, Wal-Mart,
then eBay and Amazon,” he
said. “She goes the way things
are going.”
get to the mall, Mr. Maloney
said. Apart from a weekly
stock-up trip to a membership
store like Sam’s Club or
Costco, he said shoppers in
places like Wausau do as much
shopping as possible online.
According to research firm
Slice Intelligence, which analyzes email receipts, online
sales in Wausau and surrounding towns are rising faster
than elsewhere, up 50% in November from a year earlier,
compared with 34% in Wiscon-
BUSINESS WATCH
n-
JOSHUA POLSON/THE GREELEY TRIBUNE/ASSOCIATED PRESS
EVERYONE JUST SHOPS
ONLINE NOW.
A Colorado Qdoba restaurant last year. The chain is in 47 states.
no
nated his self-made millions to
charity while battling opponents and governments in
court as he sought markets for
his company’s products.
A forensic investigator removed a box from the Shermans’ home in North Toronto
Monday night, where the billionaire Apotex Inc. founder,
75 years old, and Ms. Sherman, 70, were found dead Friday. Police said they died of
“ligature neck compression,” a
type of strangulation. The case
has stunned the city and its
philanthropic community.
“When I tell you they were
involved in philanthropy, I
don’t mean they just wrote
checks,” said Josh Cooper,
president and chief executive
of the Baycrest Foundation,
the fundraising arm of Baycrest Health Sciences hospital,
to which the couple donated
money for most of a 472-bed,
long-term-care facility. “They
really participated in events
and fundraisers. Anyone who
had them on their board or in
their corner was so fortunate
to have them.”
Honey Sherman was the
extrovert of the two, attending meetings and charity
events for Baycrest and other
groups, friends and former
colleagues said. Barry was reserved, friends said. Some described him as a brilliant scientist who started at the
University of Toronto and
worked hard to turn the twoemployee drug business he
acquired from his uncle’s estate in the late 1960s into a
global organization with
11,000 workers.
Mr. Sherman’s net worth
was recently estimated to be
$3.7 billion by Canadian Business, an online magazine.
Friends say the couple held
fundraisers in their wide-windowed mansion with seemingly little security. Now, police say they are investigating
the deaths as potential homicides, after the couple’s family rejected the idea—reported earlier by local media
—that it was a murdersuicide.
“It was like being hit in the
head by a bolt of lightning.
We are all trying to figure
how it happened, why it happened,” longtime friend Paul
Godfrey, CEO of Canada’s
Postmedia, which owns newspapers across Canada, said in
interview with Toronto’s
Global News Radio.
Mr. Sherman had a litigious reputation and fought
against the world’s biggest
drugmakers to defend his generics.
Counties
around
Wausau, Wis.*
50
ly
.
By Sara Schaefer
Muñoz,
Vipal Monga
and Jacquie McNish
Nov. 2017
JACK IN THE BOX
Apollo Buys Qdoba
For $305 Million
Jack in the Box Inc. is selling
its Qdoba restaurants to privateequity firm Apollo Global Management LLC for $305 million
as it looks to focus on the franchise side of its business.
Qdoba, the Mexican-food
chain, has been challenged by
declining same-store sales,
which the company attributed to
weakness in the fast-casual dining sector. Same-store sales fell
4% at company-owned locations
in the most recent quarter.
About 88% of Jack in the Box
locations are franchised, compared with 47% of Qdoba locations. The company has said it is
working to increase the portion
of Jack in the Box restaurants
that are franchised to 95%.
Qdoba operates 726 locations
in 47 states and had sales of
more than $820 million for the
year ended in October.
—Austen Hufford
FEDEX
Holiday Season
Appears Strong
FedEx Corp., saying it is on
track for a record holiday season, raised its earnings forecast
for the year and added that the
outlook could climb even higher
if Congress’s tax overhaul is
signed into law.
The carrier based in Memphis, Tenn., reported a 9% increase in revenue for the quarter
ended Nov. 30, citing higher
shipping rates and volume.
With stronger-than-expected
revenue, FedEx now predicts adjusted earnings for the 2018 fiscal year, which ends May 31, of
$12.70 to $13.30 a share, up
from an earlier estimate of $12
to $12.80. That could jump to
$17.10 to $18.80 a share if the
tax plan passes, primarily because of an accounting change
that would reduce FedEx’s deferred tax liabilities.
For the quarter, FedEx reported earnings of $775 million,
or $2.84 a share, up from $700
million, or $2.59 a share, last
year. Excluding integration expenses from acquiring the Dutch
shipping unit TNT Express, pershare earnings rose to $3.18 a
share from $2.77 a share over
the same period. Revenue rose
to $16.3 billion from $14.9 billion.
—Paul Ziobro
THE TRUTH
Physical stores generate
90.7% of all retail sales*
LEMONADE
SoftBank-Led Round
Reaps $120 Million
Insurance company Lemonade Inc. said Tuesday it has
raised $120 million in an investment round led by SoftBank
Group Corp. of Japan.
The Series C funding round
will be used to help the New
York-based company expand
globally next year.
SoftBank will also gain a seat
on Lemonade’s board. Lemonade
said David Thevenon, a managing director at SoftBank, will join
its board.
—Allison Prang
LEARN THE TRUTH:
SHOPPINGFORTHETRUTH.COM
*According to the U.S. Census Bureau; ICSC Research
WSJ. Custom Studios is a unit of The Wall Street Journal advertising department.
The Wall Street Journal news organization was not involved in the creation of this content.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B4 | Wednesday, December 20, 2017
* *
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Waymo Recruits
Startup to Insure
Autonomous Cars
A vehicle topped with a self-driving sensor on display last year at the Canadian company’s center for car technology in Ontario.
BlackBerry Goes Driving
BY DAVID GEORGE-COSH
AND JACQUIE MCNISH
KANATA, Ontario—BlackBerry Ltd. is betting its future
on a business that makes software for next-generation driverless cars.
Having abandoned production of its once-ubiquitous
smartphones, the Canadian
company recently refocused its
mission around QNX, a core
unit whose technology provides a foundation for car-entertainment and information
systems. BlackBerry aims to
double its QNX engineering
staff to about 1,000 in the
coming years and spend $76
million to create a center for
self-driving car technology
near Ottawa.
BlackBerry is entering a
highly competitive field, with
some of the world’s biggest
tech companies investing in
autonomous-vehicle research.
Still, the company’s QNX push
has yielded some early results,
including tie-ups with Ford
Motor Co. and Aptiv PLC, the
General Motors Co. spinoff
formerly known as Delphi Automotive PLC.
A possible deal with Tata
Motors Ltd.’s Jaguar Land
Rover unit is in the works.
In September, the company
began a marketing campaign
with billboards in Silicon Valley and Detroit showing a car
and the tag line “Is Your Car
BlackBerry Secure?” with the
aim of promoting its technology as a way to protect autonomous vehicles from hacking.
Over the long term, “the
auto sector is our best chance
at revenue growth,” BlackBerry Chief Executive John
Chen said in an interview. Mr.
Chen will deliver a keynote address next month at the North
American International Auto
Show in Detroit.
The company has struggled
to find its footing in recent
years after losing out to
phones made by Apple Inc.
and Samsung Electronics Co.
BlackBerry once counted 80
million phone subscribers using its email service, according
to the company.
Its customer base evaporated after employers began
allowing workers to use personal devices, and its market
capitalization plunged from a
peak of 79.5 billion Canadian
dollars ($61.7 billion) in 2008
to C$3.24 billion in late 2013.
BlackBerry sells phones
sourced from third-party manufacturers after it stopped
making them last year; but the
number is so small that research firm Gartner Inc. measured BlackBerry’s share of the
global device market at 0.0%.
Revving Down
BlackBerry’s annual revenue
$20 billion
15
10
5
sources back to its QNX division as car makers started developing software.
A successful turnaround
pinned to QNX could make
BlackBerry attractive to a potential buyer, said Todd Coupland, a technology analyst with
CIBC World Markets, adding
that “it will first need to announce more self-driving wins
to legitimize its position in the
market.”
One possible sign that investors are taking note of the
software initiatives: BlackBerry’s shares are trading just
under $11, up about half on the
year.
If the stock continues to
rise, BlackBerry’s two biggest
shareholders—Pasadena, Calif.based Primecap Management
Corp. and Toronto-based Fairfax Financial Holdings Ltd.—
could support a potential sale
that would allow them to recoup an investment that has
long performed poorly, people
familiar with the matter said.
The two shareholders combined own about one-quarter
of the company’s shares.
In recent years, BlackBerry’s
large library of mobile, encryption and QNX patents has
drawn interest, the people
said. However, they added that
Mr. Chen has rebuffed several
takeover feelers as inadequate
and BlackBerry’s major shareholders have backed him.
—Chester Dawson
contributed to this article.
Waymo LLC, the driverlesscar unit of Google parent Alphabet Inc., is turning to an insurance-technology startup to
provide coverage for future
passengers of its ride-hailing
service.
Trov Inc., a five-year-old
firm based in Danville, Calif.,
said Tuesday it will work behind the scenes with Waymo to
insure riders for lost and damaged property and for injuries.
Waymo is racing against
auto makers such as General
Motors Co. and tech companies like Uber Technologies
Inc. to put a commercial fleet
of autonomous vehicles on
public roadways after years of
testing. In a November speech,
Waymo Chief Executive John
Krafcik said that “in the next
few months” the firm was aiming to offer rides in its driverless vans to consumers in the
Phoenix metro area.
Insurance companies are
also considering how to respond to the threat driverless
technology might pose to their
businesses. As much as 80% of
the premiums paid to car insurers are at risk of disappearing in coming decades if autonomous vehicles make driving
safer and prompt big changes
in car ownership.
States are starting to introduce insurance rules for driverless cars. Earlier this year,
California regulators proposed
that manufacturers of autonomous vehicles would have to
have $5 million in liability insurance to provide coverage.
The Trov insurance policies
would only cover people inside
driverless cars.
Trov was founded in 2012. It
was launched officially last
year in the U.K. and Australia
with a focus on covering consumer electronics and photography equipment with insurance that can be turned on or
off with a swipe on a smartphone.
Premiums are tailored to the
individual items being insured,
unlike traditional homeowner
or renter policies that provide
blanket coverage.
Scott Walchek
heads Trov,
which offers
‘usage-based’
coverage.
co Fo
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Former phone giant
pins growth prospects
on software for
autonomous vehicles
So-called usage-based insurance, which changes in response to the customer’s needs
or actions, has become popular
among both traditional insurers and startups like Trov. A
common example is car insurers’ use of devices to track a
driver’s behavior and then offer discounts for good driving.
Trov CEO Scott Walchek
said what appealed to Waymo
was Trov’s ability to measure
risk in what it calls “micro-durations.” The company asked if
Trov’s technology for only assessing risk during periods
when its users swiped on their
coverage could be repurposed
to cover passengers for the
length of a ride in a Waymo vehicle. Trov developed a solution, Mr. Walchek said.
Trov said its policies with
Waymo will be underwritten
ly
.
CHRIS ROUSSAKIS/BLOOMBERG NEWS
BY PETER RUDEGEAIR
AND NICOLE FRIEDMAN
0
FY ’03 ’05
’10
’15
’18
Notes: FY2018 data is through the second
quarter; fiscal year ends Feb. 28.
Source: the company
THE WALL STREET JOURNAL.
The company’s other main
business, software management for phones, currently
provides the bulk of its revenue, though analysts say it is
appearing to plateau.
In 2010, BlackBerry bought
QNX from Harman International Industries Inc.—which
was acquired earlier this year
by Samsung—to help bolster
the operating system for its
BB10 devices. The aim was to
include enough features to
draw interest away from
iPhones and Android-supported phones, but the new
BlackBerry devices failed to
catch on and the company
shifted its engineering re-
by a unit of reinsurer Munich
Re AG, whose venture-capital
arm led a $45 million fundraising round for the startup earlier this year.
“This is a chance to see how
these cars operate [so] once it
becomes something you see
across the world, we’ll be positioned to be able to insure
these at scale,” said Andrew
Rear, head of digital partnerships at Munich Re.
Waymo is Trov’s first corporate customer. Executives
hope that the deal will be the
start of a broader push into
what it calls “personal mobility” services, which also include bike-sharing and on-demand delivery.
“All of those folks are going
to market with some new form
of mobility that did not exist,”
said Ian Sweeney, the general
manager of Trov Mobility.
Trov is looking to bring its
single-item insurance business
to the U.S. in the first half of
2018.
Germany Confronts Facebook on Collection of User Data
REMIT
Continued from page B1
have been operating in the
same way for the last 30
years,” she said.
The remittance market has
long been fragmented, with
banks, transfer specialists such
as Western Union and an informal and often illegal
money-transfer system known
as hawala vying for thin slices
of the remittance pie. Despite
the competition, sending
money can often be expensive
and time-consuming.
Differing regulations and
bank procedures mean sending
through banks often takes
days, and fees can be confusing and high.
Money-transfer specialists
are generally faster but more
expensive and you have to visit
one of their outlets, which in
places like Hong Kong often
have long lines. Meanwhile,
many of the people who depend on remittances often
have no accounts to receive
funds.
The remittance startups say
they are trying to change that
by slashing the number of
middlemen involved to make
cash connections.
“How is it that it’s free to
send an email and it costs to
send money?” said Kristo
Käärmann, co-founder and
chief executive of Londonbased TransferWise, which
sends almost $2 billion a
month. “Why does it have to
cost much at all, when we’re
moving bits and bytes
around?”
Sending money using the
TransferWise app takes minutes—users enter their recipient’s account details and then
ARMANDO BABANI/EPA/SHUTTERSTOCK
no
Germany’s top antitrust enforcer opened a new front
against big tech firms on
Tuesday, saying the way Facebook Inc. harvests user data
constitutes an abuse of market
dominance.
In what lawyers call a novel
use of competition law, Germany’s Federal Cartel Office
published preliminary findings
that accuse Facebook of using
its power as the dominant social network in Germany to
strong-arm users into allowing
it to collect data about them
from third-party sources, such
as websites with “like” buttons.
While Tuesday’s findings
won’t lead to fines, they pave
the way for Germany to order
changes in the way Facebook
does business when it issues a
final decision as early as next
summer. If upheld in European
Union court, this new line of
attack could eventually expand the boundaries of com-
petition law within the bloc to
encompass questions of online
privacy.
“Data protection, consumer
protection and the protection
of competition interlink where
data, as in Facebook’s case, are
a crucial factor for the economic dominance of a company,” said Andreas Mundt,
head of Germany’s cartel office.
The office argues that Facebook is the only major social
network in Germany, with
more than 90% market share,
leaving users no choice but to
accept its terms of service—
which include consent for the
collection of third-party data.
Facebook said it complies
with European privacy laws and
that the cartel office’s report
“paints an inaccurate picture”
because the company faces ample competition from services
the office didn’t include in its
definition of the social-network
market, including YouTube,
Twitter and Snapchat.
“We look forward to an-
n-
BY SAM SCHECHNER
An Oculus virtual-reality headset is tested at a Facebook display in Frankfurt in September.
swering officials’ questions and
demonstrating how Facebook
contributes to a competitive
marketplace,” said Yvonne
Cunnane, Facebook’s head of
data protection.
The German cartel office’s
case against Facebook is the
one of biggest efforts by a regulator to expand traditional an-
titrust law to cover controversial
business
practices
associated with the digital era.
The way companies like Facebook or Alphabet Inc.’s Google
pay by card or bank transfer.
The company has bank accounts in multiple countries, so
it simply takes the money into
its account in the sending country and disburses it from its account in the receiving country,
skirting around the traditional
transfer system, which often
requires rubber stamps from
central banks and other authorities along the way.
The differences in fees can
be significant. Sending via
banks alone costs about 11% of
the money transferred on average; sending through a traditional money-transfer agent
costs around 6%, while sending
it via phone using mobile operators costs around 3%, according to the latest World Bank
survey of remittance costs.
Each company plans to go
global, but many have
strengths in the most heavily
used remittance routes.
Seattle-based Remitly is doing well in U.S.-to-Philippines
remittances, for example, Singapore-based InstaReM is
strong in Australia to India and
TransferWise, the U.K. to Europe.
There are signs of a shakeout, and front-runners are
emerging.
TransferWise serves millions
of people and has already
grown into a unicorn with a valuation of $1.6 billion, after raising $280 million in a tough environment last month.
WorldRemit earlier this
month said it had raised a total
of more than $220 million but
wouldn’t disclose its valuation.
Remitly has just raised $115 million at an undisclosed valuation.
“We’re really excited about
using it to completely transform this industry,” said Matt
Oppenheimer, CEO and cofounder of Remitly, which
counts Amazon.com’s Jeff Bezos as one of its investors and
sends around $2 billion a year.
Banks and transfer agents
say they are doing more online
and through phones as well,
and the market is large enough
to allow lots of new players.
The startups use
everything from
digital wallets
to bitcoin.
Western Union said it isn’t
worried about the disruption.
Many of its customers still
prefer to use cash, and it
would just be too costly for
the startups to develop an onthe-ground network that could
compete. People want to use a
collect and use of personal
data, in particular, has been a
thorny topic in academic and
policy circles.
“This is in the avant-garde—
at or near the outer boundary
of classic competition law,”
said Nicolas Petit, a professor
of competition law at University of Liège, in Belgium. “The
theory is quite uncharted.”
In prior cases where data
has been an issue, antitrust officials have generally not found
any reason to object to a deal
or allege anticompetitive behavior. The EU cleared Facebook’s 2014 purchase of chat
service WhatsApp without conditions, saying it wouldn’t distort competition by giving
Facebook too much user data.
The EU later fined Facebook
€110 million ($129.6 million)
for giving misleading information during the review of the
WhatsApp purchase but didn’t
challenge the deal itself.
—Natalia Drozdiak
contributed to this article.
brand they are familiar with,
said Khalid Fellahi, senior vice
president of Western Union.
“This
is
hard-earned
money” they are sending
home, he said. “There is a very
high rating on trust.”
Still, traditional moneytransfer companies are also
trying to stay on top of the latest technology. Western Union
launched a digital division in
San Francisco that is setting
up partnerships with companies like Chinese messaging
app WeChat and Facebook
Messenger. It invested in Digital Currency Group, an investment firm focused on bitcoin
and blockchain startups.
Ant Financial Services and
MoneyGram hope to merge,
providing the Chinese fintech
firm with access to an on-theground global agent network of
350,000 outlets in more than
200 countries and territories.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B5
co Fo
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ly
.
WE ALL
KNOW
SOMEONE
DEALING
WITH
CANCER.
HELP US
CHANGE
THAT.
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The American Cancer Society leads the way in breakthrough
research and offers free rides to treatments, free lodging
near hospitals, and a 24/7 live helpline. Your tax-deductible
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Please give what you can today at cancer.org.
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THE WALL STREET JOURNAL.
B6 | Wednesday, December 20, 2017
BANKING & FINANCE
Two Republicans join
with committee’s
Democrats in blocking
Trump’s nominee
BY ANDREW ACKERMAN
WASHINGTON—A Republican fight over the direction of
the Export-Import Bank escalated Tuesday with a Senate
panel’s rejection of President
Donald Trump’s pick to run the
agency, the first time a committee has voted to block one
of the administration’s nominees.
The Senate Banking Committee voted 13-10 to reject
Scott Garrett, a former Republican House member who had
until recently pushed to shut
down the agency, which boosts
financing for U.S. exports.
Two Republicans—Sens. Tim
Scott of South Carolina and
Mike Rounds of South Dakota—
joined all of the panel’s Democrats to defeat Mr. Garrett, saying they didn’t find the New
Jersey Republican’s recent reversal credible after years of
his opposition to the bank’s existence.
The move is a setback for
the White House and a victory
for large manufacturers such
as General Electric Co. and
Boeing Co. that pressured lawmakers to oppose Mr. Garrett.
“While I wish him no ill
will, I do believe he is not the
right person to be the chairman,” Mr. Rounds said after
the vote. “That strong desire
on his part to see it abolished,
as an example of crony capitalism, would not have worked in
the operation of a bank.”
Ex-Im Bank has long split
the GOP’s business-friendly
faction and those who criticize
the agency as an example of
inappropriate government interference in the market.
Tuesday’s vote could serve to
exacerbate those tensions in a
way that is likely to leave the
bank short-handed for at least
several more months, extending a political standoff that
has left it unable to approve
more than $40 billion in transactions tied to everything
from jet engines to earth-moving equipment.
The White House offered no
indication it would replace Mr.
Garrett with another nominee,
saying it was disappointed the
banking panel “missed this opportunity to get the ExportImport Bank fully functioning
again.”
“We will continue to work
with the committee on a path
ZACH GIBSON/BLOOMBERG NEWS
Senate Panel Rejects Ex-Im Bank Pick
Scott Garrett had pushed to shut down the U.S. agency when he was a member of Congress.
forward,” White House legislative director Marc Short said
in a written statement.
Ex-Im Bank supports U.S.
exports by guaranteeing loans
to foreign buyers and providing credit insurance. Its back-
ers say the agency allows U.S.
companies to compete as
equals with foreign rivals that
receive similar support from
their home governments.
Some Republicans have argued
the bank amounts to corporate
welfare and should be shut
down—a view shared until recently by Mr. Garrett, who reversed himself at a nomination
hearing last month, where he
pledged to keep the bank
“fully functioning” if con-
firmed.
The bank’s charter ran out
in July 2015, preventing it
from conducting new business
until it was renewed in December 2015 and authorized until
September 2019. Senate Republicans haven’t filled empty
board seats, depriving Ex-Im
Bank of a quorum and leaving
it unable to approve financing
for deals of more than $10 million.
Democrats also criticized
Mr. Garrett as an unsuitable
choice. They urged Senate GOP
leaders to quickly vote on a
slate of other, noncontroversial candidates to openings at
the agency after the banking
panel voted separately to approve them Tuesday.
“We have lost American
jobs because of the games that
have been played with the Export-Import Bank,” said Sen.
Sherrod Brown (D., Ohio).
“American jobs have been lost
as deals stall and U.S. manufacturers consider moving
their production abroad.”
Conservative lawmakers, including Sen. Pat Toomey (R.,
Pa.), have pledged to block the
other nominees if Mr. Garrett
wasn’t first confirmed. A
spokeswoman for Mr. Toomey
reiterated that pledge Tuesday.
mine the amount of extra capital the biggest banks need to
hold. The vote was 288-130.
Pending Senate legislation
takes a different approach for
altering the postcrisis rule
book.
The Senate bill, which is
expected to come to the floor
of that chamber in early 2018
and has bipartisan support,
would simply raise the regulatory threshold in question to
$250 billion from $50 billion.
It is unclear how lawmakers will seek to reconcile the
two competing provisions.
The divergent approaches in
part reflect preferences by
many Republicans and some
Democrats to eliminate an asset threshold that they view
as arbitrary. Many Democrats
believe the thresholds serve
as an important signal of
where Congress thinks regulators should draw the line on
heightened supervision.
Either way, the legislation
reflects increasing support
for the idea that regional
banks are being unfairly categorized as “systemically important” institutions, bringing
them under stricter regulatory standards that the nation’s largest banks have to
follow.
co Fo
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BY ANDREW ACKERMAN
ly
.
Bill Would Drop Oversight Threshold
n-
WASHINGTON—Regulators would have more discretion to decide which banks to
target for stricter oversight
under bipartisan legislation
that House lawmakers approved Tuesday, the latest
front in a broad push to ease
postcrisis regulations.
The bill by Rep. Blaine Luetkemeyer (R., Mo.) would
scrap the threshold for
heightened supervision—institutions with $50 billion or
more in assets—and instead
rely on a formula the Federal
Reserve already uses to deter-
no
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1
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Mr. Luetkemeyer said the
asset-based approach to reeling in certain banks for
tougher oversight fails to adequately account for banks’
differing business models or
the risks they may pose to the
financial system.
“My legislation will remove
the arbitrary approach taken
and replace it with an analysis of the actual risk presented by a bank holding
company to the financial system,” he said.
Opponents said the House
bill would help large banks
that don’t need regulatory relief.
No ‘Deficiencies’
In Bailout Plans
The eight largest and
most complex U.S. banks
avoided a major rebuke on
their latest “living will” bailout-prevention plans, a milestone that further reduces
the already-remote possibility
that any of the firms would
be broken up by the government.
U.S. regulators said the
eight firms, including Bank of
America Corp., Goldman
Sachs Group Inc., Citigroup
Inc., JPMorgan Chase & Co.,
Morgan Stanley and Wells
Fargo & Co., didn’t have “deficiencies” in plans documenting how they could go bankrupt without needing a
taxpayer bailout.
That was a reversal from
April 2016, when the Federal
Reserve and Federal Deposit
Insurance Corp. shocked the
firms by determining five of
eight had deficiencies.
The regulators’ 2016 decision had raised the possibility
of bank breakups. If regulators find deficiencies in the
firms’ plans, the 2010 DoddFrank law empowers them to
impose significant sanctions
and, eventually, force divestitures. The idea was that regulators would use the power
if they determined big banks
were “too big to fail.” Tuesday’s verdict, rendered by two
agencies still led by appointees of the Obama administration, shows that is highly
unlikely. Trump administration
appointees who take over the
regulators in the coming
months are expected to be
less inclined to crack down on
big banks.
The test Congress set out
in Dodd-Frank is severe: Big
banks have to show they
have credible plans to collapse and go through the U.S.
bankruptcy process without
any taxpayer help.
That is a tall task to
imagine for firms with such
massive footprints. Bank of
America alone has about
$2.25 trillion in assets. The
failure of a firm that size
could easily send financial
markets into a panic, as occurred when Lehman Brothers filed for bankruptcy in
2008.
—Ryan Tracy
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Wednesday, December 20, 2017 | B7
THE WALL STREET JOURNAL.
BANKING & FINANCE
BY ALEXANDER OSIPOVICH
The ruling helps
ensure fast traders
won’t ‘get a jump,’
says a lawyer in case.
Exchanges have previously
beat back attempts to rein in
co-location and the sale of ultrafast data feeds, arguing
that criticism of the practices
is overblown.
Still, Tuesday’s decision
could open the door to the
“discovery” phase of the litigation, in which the plaintiffs’
lawyers will seek to obtain internal communications and
other documents from the defendants to prove their case.
After the original 2014
lawsuit was filed, it was combined with similar lawsuits
into a class-action case, with
pension funds and other investors joining the city of
Providence as plaintiffs.
DREW ANGERER/GETTY IMAGES
no
n-
A federal appeals court
said Tuesday that a lawsuit
accusing stock exchanges of
defrauding investors by favoring high-speed traders can
go forward, a blow to the
New York Stock Exchange and
Nasdaq Inc.
The two firms were among
four U.S. stock-exchange operators whose units are
named as defendants in the
lawsuit. They have denied allegations that the exchanges
favor high-frequency trading
firms over slower-moving investors.
HFT firms use powerful
computers and ultrafast network connections to trade
large volumes of stocks.
The class-action case grew
out of a lawsuit filed in 2014
by the city of Providence, R.I.,
after the publication of Michael Lewis’s best seller
“Flash Boys,” which accused
high-frequency traders of exploiting ordinary investors.
Tuesday’s decision by the
U.S. Court of Appeals for the
Second Circuit reversed a
2015 ruling in which a federal
district judge threw out the
city’s lawsuit.
In that ruling, Judge Jesse
M. Furman of the Southern
District of New York agreed
with the exchanges’ argument
that they were immune to
such lawsuits.
Now, the case is being sent
back to federal district court.
A panel of federal appeals
judges ruled Tuesday that the
exchanges “are not entitled to
absolute immunity.”
Other defendants include
Bats, now owned by Cboe
Global Markets Inc., and Chicago Stock Exchange.
NYSE, which is owned by
Intercontinental Exchange
Inc., Nasdaq, Cboe and the
Chicago Stock Exchange declined to comment.
The original 2014 lawsuit
cited such practices as co-location, in which HFT firms
put the servers running their
algorithms directly inside the
exchanges’ data centers. The
lawsuit also cited the sale of
superfast data feeds that offer HFT firms and other sophisticated traders quicker
access to live trading data
than they would have by using a cheaper public feed.
The appeals court’s decision will help ensure that fast
traders don’t “get a jump on
institutional investors,” said
Patrick Coughlin, a lawyer
with Robbins Geller Rudman
& Dowd LLP who is representing the city of Providence.
“Hopefully some of these
practices will be eliminated,”
he said.
Notice of Offer to Purchase for Cash
up to
7,386,364 Shares of its Class A Common Stock
at a
Purchase Price of $44.00 Per Share
Linn Energy, Inc., a Delaware corporation (the “Company”), is offering to purchase for cash up to 7,386,364 shares of its Class A common stock, par value $0.001 per
share (the “shares”) at a price of $44.00 per share, without interest, upon the terms and subject to the conditions set forth in the Offer to Purchase dated December 20, 2017
(the “Offer to Purchase”) and the related Letter of Transmittal (the “Letter of Transmittal,” and together with the Offer to Purchase, as they may be amended or supplemented
from time to time, the “Offer”). The $44.00 purchase price per share in the Offer represents a premium of approximately 10% to the highest closing price per share of our common
stock since it began trading on the OTCQB on April 10, 2017.
THE OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS WILL EXPIRE AT
11:59 P.M., NEW YORK CITY TIME, ON FRIDAY, JANUARY 19, 2018,
UNLESS THE OFFER IS EXTENDED OR TERMINATED.
The Offer is not conditioned upon any minimum number of shares being tendered. The Offer is, however, subject to a number of other terms and conditions as specified
in the Offer to Purchase.
Although the Company’s Board of Directors has authorized the Offer, none of the Board of Directors, the Company, the Dealer Manager, the Information
Agent (as defined below) or the Depositary, or any of their respective affiliates, has made, and they are not making, any recommendation to the Company’s
stockholders as to whether to tender or refrain from tendering their shares or as to the price or prices at which stockholders may choose to tender their shares.
The Company has not authorized any person to make any such recommendation. Stockholders must make their own decision as to whether to tender their shares
and, if so, how many shares to tender and the price or prices at which their shares should be tendered. In doing so, stockholders should read carefully the
information in, or incorporated by reference in, the Offer to Purchase and in the Letter of Transmittal, including the purpose and effects of the Offer. Stockholders
are urged to discuss their decision with their own tax advisors, financial advisors and/or brokers.
The Company’s Board of Directors believes that the Offer represents a prudent use of the Company’s financial resources in light of its business profile, assets, anticipated
future performance and financial condition. As of December 15, 2017, the Company had approximately $450 million in cash and cash equivalents. The purpose of the Offer
is to return cash to the Company’s stockholders by providing them with the opportunity to tender all or a portion of their shares and thereby receive a return of some or all
of their investment if they so elect. In addition, if the Company completes the Offer, stockholders who do not participate in the Offer or otherwise sell their shares of our
Class A common stock will automatically increase their relative percentage ownership interest in the Company and its future operations.
The Company will purchase at $44.00 per share up to 7,386,364 shares properly tendered, and not properly withdrawn, prior to the Expiration Time (as defined below),
upon the terms and subject to the conditions of the Offer, including the proration and conditional tender provisions (as described in the Offer to Purchase). Under no
circumstances will the Company pay interest on the purchase price for the shares, regardless of any delay in making payment. The Company reserves the right, in its sole
discretion, to purchase more than 7,386,364 shares under the Offer, subject to applicable law.
The term “Expiration Time” means 11:59 p.m., New York City time, on Friday, January 19, 2018, unless the Company, in its sole discretion, shall have extended the
period of time during which the Offer will remain open, in which event the term “Expiration Time” shall refer to the latest time and date at which the Offer, as so extended
by the Company, shall expire.
As of December 15, 2017, there were 83,573,448 shares outstanding. Assuming that the Offer is fully subscribed, the number of shares that will be purchased under
the Offer is 7,386,364 shares, or 8.8% of the shares outstanding as of December 15, 2017.
Our directors and executive officers are entitled to participate in the Offer on the same basis as all other stockholders. We do not know to what extent our directors or
executive officers will participate in the Offer. Certain of our stockholders who are affiliated with certain members of our Board of Directors (collectively, the “Affiliated
Holders”) have informed us that they may tender shares that they beneficially own in the Offer, however, we do not know whether they will tender any, some or all of their
shares in the Offer. The Affiliated Holders beneficially owned an aggregate of 45,656,220 shares as of December 15, 2017, representing approximately 54.6% of the
outstanding shares as of December 15, 2017.
Upon the terms and subject to the conditions of the Offer, if more than 7,386,364 shares (or such greater number of shares as the Company may elect to purchase, subject
to applicable law) have been properly tendered and not properly withdrawn prior to the Expiration Time, the Company will purchase properly tendered shares in the following
order of priority:
• first, subject to the conditional tender provisions described in Section 6 of the Offer to Purchase, we will purchase all shares properly tendered and not properly
withdrawn, on a pro rata basis with appropriate adjustments to avoid purchases of fractional shares, as described in Section 1 of the Offer to Purchase; and
• second, if necessary to permit us to purchase 7,386,364 shares (or such greater number of shares as we may elect to purchase, subject to applicable law), shares
conditionally tendered (for which the condition was not initially satisfied) and not properly withdrawn, will, to the extent feasible, be selected for purchase by random lot.
To be eligible for purchase by random lot, stockholders whose shares are conditionally tendered must have tendered all of their shares.
If any tendered shares are not purchased, or if less than all shares evidenced by a shareholder’s certificates are tendered, certificates for unpurchased shares will be
returned promptly after the expiration or termination of the Offer or the valid withdrawal of the shares, or, in the case of shares tendered by book-entry transfer at DTC, the
shares will be credited to the appropriate account maintained by the tendering shareholder at DTC, in each case at the Company’s expense.
Stockholders wishing to tender their shares must follow the procedures set forth in Section 3 of the Offer to Purchase and in the Letter of Transmittal. Stockholders
wishing to tender their shares but who are unable to deliver them physically or by book-entry transfer prior to the Expiration Time, or who are unable to make delivery of
all required documents to the Depositary prior to the Expiration Time, may tender their shares by complying with the procedures set forth in Section 3 of the Offer to
Purchase for tendering by Notice of Guaranteed Delivery.
The proration period is the period for accepting shares on a pro rata basis in the event that the Offer is oversubscribed. The proration period will expire at the Expiration
Time. If proration of tendered shares is required, we will determine the proration factor promptly following the Expiration Time.
For purposes of the Offer, the Company will be deemed to have accepted for payment, subject to the proration and conditional tender provisions of the Offer, shares
that are properly tendered and not properly withdrawn, only when, as and if the Company gives oral or written notice to American Stock Transfer & Trust Company, LLC
(the “Depositary”) of its acceptance of the shares for payment pursuant to the Offer.
Upon the terms and subject to the conditions of the Offer, the Company will accept for payment and pay the Purchase Price per share for all of the shares accepted for
payment pursuant to the Offer promptly after the Expiration Time. In all cases, payment for shares tendered and accepted for payment pursuant to the Offer will be made
promptly, taking into account any time necessary to determine any proration, but only after timely receipt by the Depositary of (1) certificates for shares, or a timely bookentry confirmation of the deposit of shares into the Depositary’s account at DTC (as defined in the Offer to Purchase), (2) a validly completed and duly executed Letter of
Transmittal including any required signature guarantees, or, in the case of a book-entry transfer, an agent’s message, and (3) any other required documents.
The Company expressly reserves the right, in its sole discretion and subject to applicable law, at any time and from time to time, and regardless of whether or not any
of the conditions to the Offer set forth in Section 7 of the Offer to Purchase have occurred or are deemed by the Company to have occurred, to extend the period of time the
Offer is open and delay acceptance for payment of, and payment for, any shares by giving oral or written notice of such extension to the Depositary and making a public
announcement of such extension no later than 9:00 a.m., New York City time, on the next business day after the last previously scheduled Expiration Time. In the event of
an extension, the term “Expiration Time” will refer to the latest time and date at which the Offer, as extended by the Company, will expire. During any such extension, all
shares previously tendered and not properly withdrawn will remain subject to the Offer and to the right of a tendering shareholder to withdraw such shareholder’s shares.
The Company also expressly reserves the right, in its sole discretion and subject to applicable law regardless of whether any of the circumstances described in the Offer
to Purchase shall have occurred or shall be deemed by the Company to have occurred, to amend the Offer in any respect, including without limitation by increasing or
decreasing the consideration offered. The Company further expressly reserves the right, in its sole discretion, to terminate the Offer and reject for payment and not pay for
any shares not theretofore accepted for payment or paid for, subject to applicable law, or to postpone payment for shares, upon the occurrence of any of the conditions to
the Offer specified in Section 7 of the Offer to Purchase. The Company will give oral or written notice of such amendment, termination or postponement to the Depositary
and will make a public announcement of such amendment, termination or postponement of the Offer in accordance with applicable law. The Company’s reservation of the
right to delay payment for shares that it has accepted for payment is limited by Rule 13e-4(f)(5) and Rule 14e-1 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), which requires that the Company must pay the consideration offered or return the shares tendered promptly after termination or withdrawal of the
Offer.
Shares tendered in the Offer may be withdrawn at any time prior to the Expiration Time. In addition, unless the Company has already accepted such tendered shares
for payment, stockholders may withdraw their tendered shares at any time after 12:00 a.m. midnight, New York City time, on Friday, February 16, 2018, the 40th business
day following the commencement of the Offer. Except as otherwise provided in the Offer to Purchase, tenders of shares pursuant to the Offer are irrevocable. For a withdrawal
to be effective, a written or facsimile notice of withdrawal must be received in a timely manner by the Depositary at its address set forth on the back cover page of the Offer
to Purchase, and any notice of withdrawal must specify the name of the tendering shareholder, the number of shares to be withdrawn and the name of the registered holder
of the shares to be withdrawn, if different from the person who tendered the shares. If the certificates for shares to be withdrawn have been delivered or otherwise identified
to the Depositary, then, before the release of those certificates, the tendering shareholder also must submit the serial numbers shown on those particular certificates for shares
to be withdrawn and, unless an Eligible Institution (as defined in the Offer to Purchase) has tendered those shares, the signature(s) on the notice of withdrawal must be
guaranteed by an Eligible Institution. If shares have been tendered pursuant to the procedures for book-entry transfer described in Section 3 of the Offer to Purchase, the
notice of withdrawal also must specify the name and the number of the account at DTC to be credited with the withdrawn shares and must otherwise comply with DTC’s
procedures.
All questions as to the form and validity, including the time of receipt, of any notice of withdrawal will be determined by the Company, in its sole discretion, and will
be final and binding on all parties absent a finding to the contrary by a court of competent jurisdiction. The Company reserves the absolute right to waive any defect or
irregularity in the notice of withdrawal or method of withdrawal of shares by any shareholder, whether or not the Company waives similar defects or irregularities in the
case of any other shareholder. None of the Company, the Dealer Manager, the Depositary, the Information Agent or any other person will be obligated to give notice of any
defects or irregularities in any notice of withdrawal, nor will any of them incur liability for failure to give any such notice.
Generally, United States stockholders will be subject to United States federal income taxation when they receive cash from the Company in exchange for the shares
they tender. Their receipt of cash for tendered shares will generally be treated as either (1) consideration received in a sale or exchange or (2) a distribution with respect to
such shares. All stockholders should read carefully the Offer to Purchase for additional information regarding certain tax issues and should consult their own tax advisor
regarding the tax consequences of the Offer.
The Offer to Purchase and the Letter of Transmittal contain important information that stockholders should read carefully before they make any decision
with respect to the Offer. Copies of the Offer to Purchase and the related Letter of Transmittal will be mailed to record holders of Shares whose names appear on
the Company’s stockholder list and will be furnished to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of
whose nominees, appear on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing for subsequent
transmittal to beneficial owners of shares. Persons who hold vested rights to purchase or otherwise acquire shares will be provided a copy of the Offer to Purchase
and the related Letter of Transmittal upon request to the Information Agent at the telephone numbers and address set forth below. Such persons should read the
Offer to Purchase for further information regarding how they can participate in the Offer.
The information required to be disclosed by Rule 13e-4(d)(1) under the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.
Please direct any questions or requests for assistance to D. F. King & Co., Inc. (the “Information Agent”) or Morgan Stanley & Co. LLC (the “Dealer Manager”) at
their respective telephone numbers and addresses set forth below. Please direct requests for copies of the Offer to Purchase, the Letter of Transmittal or the Notice of
Guaranteed Delivery to the Information Agent at the telephone numbers and address set forth below. The Information Agent will promptly furnish to stockholders additional
copies of these materials at the Company’s expense. Stockholders may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance
concerning the Offer.
co Fo
m rp
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er rs
ci on
al a
us l,
e
on
Big exchanges suffer
blow in case entailing
accusation they
favored some traders
LINN ENERGY, INC.
ly
.
Court Allows
Speedy-Trader
Suit to Proceed
This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares. The Offer (as defined below) is made solely by the Offer to Purchase,
dated December 20, 2017, and the related Letter of Transmittal, as they may be amended or supplemented from time to time. The information contained or referred
to therein is incorporated herein by reference. The Offer is not being made to, nor will tenders be accepted from or on behalf of, holders of shares in any jurisdiction
in which the making or acceptance of offers to sell shares would not be in compliance with the laws of that jurisdiction. If the Company (as defined below)
becomes aware of any such jurisdiction where the making of the Offer or the acceptance of shares pursuant to the Offer is not in compliance with applicable
law, the Company will make a good faith effort to comply with the applicable law. If, after such good faith effort, the Company cannot comply with the
applicable law, the Offer will not be made to (nor will tenders be accepted from or on behalf of) the stockholders residing in such jurisdiction. In any
jurisdiction where the securities, blue sky or other laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on
behalf of the Company by the Dealer Manager (as defined below), or by one or more registered brokers or dealers licensed under the laws of that jurisdiction.
The New York Stock Exchange. It and Nasdaq deny allegations
that they gave high-frequency firms preferential treatment.
Merrill Lynch Agrees
To Settle Credit Claims
BY DAVE MICHAELS
WASHINGTON — Merrill
Lynch agreed to pay $1.4 million to settle claims that it improperly extended hundreds of
millions of dollars in excess
credit to customers who
traded certain bonds and equities with the firm, Wall
Street’s self-regulator said on
Tuesday.
The brokerage firm, a subsidiary of Bank of America
Corp., should have collected
$475 million in additional
margin or deducted $362 million of its own capital to cover
the risk of a possible customer
default on certain bond and
equity trades, the Financial Industry Regulatory Authority
said in an order announcing
the settlement.
The trades involved bonds
and equities that take longer
than normal to settle, the
point when a seller receives
cash and the buyer obtains the
security.
Merrill Lynch didn’t have
systems properly designed to
track the trades from 2013 to
2015, which resulted in its failing to collect the deposits or
lock up more of its own capital.
Finra also said Merrill
Lynch’s failure to monitor the
trades caused it to improperly
extend credit to customers
who weren’t approved for
margin trading. The regulator
said Merrill Lynch was aware
of certain deficiencies in April
2013 but didn’t take corrective
action until the middle of
2014.
A Bank of America spokesman declined to comment beyond saying the brokerage addressed the problems found by
Finra.
Merrill neither admitted
nor denied the allegations and
agreed to pay the penalty.
Finra’s order said that despite the violations, the brokerage’s overall capital reserves were sufficient.
The Depositary for the Offer is:
American Stock Transfer & Trust Company, LLC
Operations Center
Attention: Reorganization Department
6201 15th Avenue
Brooklyn, NY 11219
By Facsimile Transmission (for Eligible Institutions Only): 1-718-234-5001
Confirm Facsimile Transmission: 1-877-248-6417
The Information Agent for the Offer is:
D. F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Email: Linn@dfking.com
Stockholders may call toll free: (877) 297-1738
Banks and Brokers may call collect: (212) 269-5550
The Dealer Manager for the Offer is:
Morgan Stanley & Co. LLC
1585 Broadway
New York, NY 10036
Banks, Brokers and Stockholders
Call U.S. Toll-Free: (855) 483-0952
December 20, 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.
B8 | Wednesday, December 20, 2017
THE WALL STREET JOURNAL.
THE PROPERTY REPORT
REIT Investors Set
To Benefit as Tax Cut
Eases Dividend Bite
Affordable housing under construction in Needham, Mass. Builders of lower-cost homes expect only a modest impact from the tax bill.
Bill May Aid Rental Firms
While the for-sale housing
market largely came out a
loser in the Republicans’ tax
overhaul, developers of rental
housing were largely unscathed and could even stand
to benefit.
Affordable-housing developers, who had feared that
provisions in the House bill
would curb production in their
industry by up to two-thirds,
now predict the impact of the
final legislation will be modest. Meanwhile, market-rate
rental owners stand to benefit
from a slightly lower corporate tax rate and increased demand for rental housing.
The bill allows corporations
to deduct interest on debt of
just 30% of earnings before interest, taxes, depreciation and
amortization, changing to a
tougher threshold in later
years, but carves out an exception for real-estate entities. In
exchange for taking the full
deduction, firms must take the
tax benefits of depreciation
over a longer period.
The bill also enables a portion of income from passthrough entities, such as the
limited liability companies
that own many commercial
real-estate buildings, to take a
deduction on their income of
up to 20%, giving them a top
effective rate of 29.6%. That
provision expires after 2025,
which could create uncertainty
in the industry.
Apartment owners say they
also could benefit from a tax
code that no longer favors
owners over renters now that
the deduction for mortgage interest is blunted by a higher
standard deduction.
“John Q. Public has been
sold by the home-building industry that it’s better to own
than rent because you’re getting subsidized by the government because you have all
these deductions,” said Ric
Campo, chairman and chief executive of Camden Property
Trust, a real-estate investment
trust that invests in apartments. “That equation will
change.”
Barbara Byrne Denham, a
senior economist at real-estate
investment-research firm Reis
Inc., said the tax bill could be
a particular boon for rental
markets in suburban areas
with high property taxes. The
bill caps the amount of state
and local taxes that homeowners can deduct at $10,000,
which could give some families an incentive to rent longer
and enjoy the good schools
and other services those areas
provide without having to foot
a higher tax bill.
Affordable-housing provid-
ers, meanwhile, view themselves as having dodged a bullet. The House bill would have
repealed the tax-exempt status
of private activity bonds,
which are used in combination
with tax credits to help fund
affordable housing. The repeal
could have meant that some
700,000 fewer units of affordable housing would be produced in the U.S. over the next
the price they were willing to
pay for credits this year, anticipating a 25% corporate rate,
and that reduction in pricing
is likely to be cemented at a
slightly lower rate. A lower
corporate tax rate generally
reduces demand for affordable-housing tax credits,
which come with conditions.
“The threat of a lower corporate rate is now a reality of
lower corporate rates. That
depresses pricing and means
that more credits need to be
put into a particular project in
order to produce it,” said Rick
Goldstein, a partner at Nixon
Peabody LLP.
A year ago, many in the industry hoped to see the tax
credit that produces affordable housing expanded and
strengthened in recognition of
near-record levels of rental
tenants who are paying more
than 30% of their incomes in
rent, a level economists consider sustainable. But expectations changed as versions of
the bill emerged in the House
and the Senate.
“It’s neutral to slightly negative. It’s better than losing,
but it doesn’t make me feel all
warm and fuzzy. So much opportunity was lost,” said
Shekar Narasimhan, managing
partner of Beekman Advisors,
an investment bank for commercial real-estate companies.
Shares of real estate investment
trusts are ending a choppy year
close to where they started.
MSCI US REIT Index
1200
1180
1160
1140
1120
1100
2017
Source: FactSet
THE WALL STREET JOURNAL.
co Fo
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BY LAURA KUSISTO
Leveling Out
Investors in real-estate investment trusts will have a
smaller tax bill on dividends
with the Republican tax plan.
The tax plan features a deduction for pass-through businesses—income derived from
commercial activities that
their owners or shareholders
pay on their personal income
taxes. That deduction includes
the income that flows to REIT
investors through dividends—
mainly from rent or mortgage
interest—but not the capital
gains secured when properties
are sold.
The plan allows investors to
deduct 20% of the income,
with the remainder of the income taxed at the filer’s marginal rate. It is available even
if the taxpayer doesn’t itemize
deductions.
Shareholders of REITs who
now pay the top income-tax
rate of 39.6% on dividends received would see that rate
drop to 29.6%, according to the
National Association of Real
Estate Investment Trusts.
“Clearly this is a deduction
that will lower the overall tax
rate for individuals who invest
in REITs,” said Dianne Umberger, principal and REIT
leader for Ernst & Young’s National Tax Department.
The new provision would
keep REITs an attractive vehicle for real-estate investors
and could fuel additional demand for REIT shares. That is
because investors who earn
rental income outside of REITs
could be subject to taxes at the
top rate of 37% under the new
bill but just 29.6% through a
REIT.
The distribution of capital
gains from REITs will continue
to be taxed at 20%, according
to the National Association of
Real Estate Investment Trusts.
“There has never been a
lower rate of tax for rent and
mortgage interest received
through REITs,” said David
Miller, a partner in the tax department of Proskauer Rose LLP.
For the past year, businesses
and investors have focused on
the Trump administration’s
promise to reduce the corporate tax rate, which leaves out
companies that are typically
exempt from such taxes, such
as REITs. REITs distribute at
least 90% of their income as
dividends and don’t typically
pay corporate taxes. It is their
shareholders who pay income
29.6%
Top effective tax rate for many
owners of commercial real estate
decade, according to Novogradac & Co. LLP, an accounting
firm. The latest draft of the
bill retains them.
A lower corporate tax rate
is likely to result in roughly
15% less affordable housing
built using a tax credit for lowincome housing, Novogradac
said, by reducing the value of a
tax break to investors, many of
which are banks and large
companies. Affordable housing, which represents about
one-quarter of all new apartment construction in the U.S.,
relies on the credit for capital.
Investors already reduced
tax on those dividends.
Some analysts earlier had
raised concerns that the REIT
structure might lose its appeal
if property investors find aftertax yields more attractive by
owning real estate through a
corporation when corporate
taxes are lowered. The proposed deduction reduces that
risk.
Fund managers say they
don’t typically focus on aftertax yields in their analyses, but
they expect some of their clients and prospective investors
to pay more attention to the
change.
“It’s a big deal from a valuation perspective,” said Matthew Werner, managing director
at
Chilton
Capital
Management LLC, whose mutual fund invests in REITs. A
lower tax burden on REIT dividends would boost the appeal
of REITs relative to other
yield-oriented investments,
particularly for those owning
REITs in a taxable account.
For many investors in REITs,
the tax treatment might not be
as important as parsing the
business fundamentals of the
real-estate market. Commercial-property values are likely
near a cyclical peak and rental
income growth is slowing.
“Either they were not excited by it or they didn’t really
notice,” said Jeffrey Donnelly,
senior analyst at Wells Fargo.
He hosted a 2018 real-estate
securities outlook presentation
recently and said he was surprised that he didn’t get questions regarding the lower tax
burden on REIT dividends.
—Keiko Morris
contributed to this article.
ly
.
DAVID L. RYAN/BOSTON GLOBE/GETTY IMAGES
BY ESTHER FUNG
BY PETER GRANT
For the Lowy family, the
Unibail deal is a story of a dynasty taking the unusual step
of relinquishing control. Most
families that built real-estate
empires—both those that are
closely held and partially
owned by public shareholders—spend years structuring
transitions so that one generation hands over the baton of
control to the next.
Each new generation that
steps into power feels “an obligation to perpetuate the tradition,” said Leonard Boxer,
the co-chairman of real estate
at law firm Stroock & Stroock
& Lavan, who has worked with
numerous New York real-estate families on transitions.
But not the Lowys. None of
Frank Lowy
built up
Westfield
Corp. starting
with a deli
outside
Sydney.
The Westfield London shopping mall. The Lowy family is relinquishing control of its empire.
Peter’s four children or Steven’s four children are active
at Westfield. Their brother,
David, who left Westfield more
than 15 years ago to help manage the family’s other investments, has three children who
also don’t work for Westfield.
Peter Lowy said the family
did this intentionally, especially as public investors took
a large ownership stake.
Other dynasties, like the
Taubmans in the U.S., structured their companies to
maintain family control even
after selling shares to the public. A spokeswoman for Taubman didn’t respond to a re-
quest to comment.
The Lowys consciously
didn’t steer the next generation into Westfield careers because it was a public company,
Peter Lowy said. “My dad
never believed, I don’t believe
and my brother doesn’t believe that just because of us,
you would not take [the sale
to Unibail] to its logical conclusion,” he said.
Frank Lowy was born in
1930 in what is today Slovakia.
His father died in Auschwitz.
Frank Lowy survived Nazi-occupied Europe and later
fought in the 1948 Arab-Israeli
War. After reuniting with fam-
ily in Australia, he built Westfield starting with a deli outside Sydney.
The family gained global attention after the Sept. 11,
2001, terrorist attacks because
Westfield owned the retail
portion of the World Trade
Center in New York. This
month, Mr. Lowy was formally
awarded a knighthood by
Queen Elizabeth II in a London
ceremony.
There were earlier signs the
Lowy family was open to selling Westfield at the right
price, and family members
were eager to do other things.
For example, Peter Lowy, who
resides in Los Angeles, has
made it clear that he was interested in other pursuits, including politics in the U.S. and
surfing. His roles include serving as chairman of the Homeland Security Advisory Council
for Los Angeles County.
He was open to leaving his
role at Westfield in 2014 after
the company split into two
companies, Westfield Retail
Trust, which became Scentre
Group that owned properties in
Australia and New Zealand, and
Westfield Corp., which held the
higher-growth malls in the U.S.
and Europe. The Lowys kept
control of Westfield Corp., but
JASON ALDEN/BLOOMBERG NEWS
no
Australia’s Lowy family,
which built Westfield Corp.
into one of the world’s largest
shopping center owners, resembles other global real-estate dynasties in many ways
but not when it comes to the
critical question of maintaining control.
“Westfield always was dominated by the family, but it
was never meant to be one of
those dynasties to be handed
down,” Peter Lowy, Westfield’s
co-chief executive, said in an
interview.
The Lowys made that clear
last week when Westfield said
that European shopping-center
operator Unibail-Rodamco SE
would acquire the Sydneybased landlord for $15.7 billion, plus the assumption of
$10 billion in debt. Plans call
for Unibail management to run
the combined company.
The Lowy family will own a
stake in the combined company. But Frank Lowy, the Holocaust survivor who founded
Westfield, will retire as chairman. His sons Peter, 58 years
old, and Steven, 55, will step
down as co-chief executives.
Unibail’s purchase of Westfield is seen as a sign of the
times in which online shopping
is creating enormous disruptions in the traditional retail
business. Like many big mall
owners, Westfield’s share price
was pummeled below the combined value of all its properties.
Unibail is willing to pay a
premium over the company’s
public market value, analysts
said. “They’re getting good
pricing,” said Haendel St.
Juste, an analyst at Mizuho
Securities USA, of the Lowys.
n-
Family Creates New Playbook for Real-Estate Dynasties
Peter initially decided to leave
because he didn’t feel there
was enough work or the company was large enough for two
chief executives.
Peter’s father and the board
changed his mind. They pointed
out the company faced numerous challenges such as a development pipeline valued at over
$10 billion. It included the
Westfield Mall that is part of
the redevelopment of the World
Trade Center in New York.
Unibail has long been interested in acquiring Westfield
Corp. The company made an
offer in 2014, but it was rebuffed as being too low, according to people familiar
with the matter.
Westfield believes the price
is more compelling now, partly
because the offer is fully valuing projects that were under
way in 2014, like the World
Trade Center.
Last summer it became
clear that Unibail was “serious
about wanting to do this,” Peter Lowy said. The price
bridged the difference between “where the stock was
trading to where [Westfield’s]
underlying value is,” he said.
The Lowys will likely stay
busy once the deal is closed.
They are carving out one of
Westfield’s business units into
a separate company named
OneMarket. The San Francisco
business uses data to connect
consumers, retailers, shopping
malls and brands.
The Lowys also will continue
to have a stake in the merged
company valued at more than
$1.2 billion. Frank Lowy will be
chairman of a newly created
advisory board. Peter Lowy will
be appointed to the company’s
supervisory board.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B9
THE PROPERTY REPORT
Mall Owners Spin Off Their Weak Assets
DDR is the latest one
to split its struggling
strip centers into a
new separate REIT
BY ESTHER FUNG
The move by retail landlord
DDR Corp. to spin off 50 weak
strip centers into a separate
real-estate investment trust is
the latest example of owners
culling underperforming assets so they can focus on the
stronger ones.
In 2014, Simon Property
Group spun off its strip-center business and smaller enclosed malls into another
REIT called Washington
Prime Group. Other listed retail REITs such as Kimco Realty Corp. and CBL & Associates Properties also have
been active sellers of shop-
ping centers in recent years.
The swiftness of DDR’s
plan, announced Thursday,
highlights the increasing urgency of getting rid of albatrosses. The purpose of the
spinoff, called Retail Value
Trust, would be “to maximize
proceeds from operations and
dispositions, ultimately returning capital to investors,”
said David Lukes, chief executive officer of DDR, during an
analyst call after the announcement.
“DDR clearly wants to move
at a quick pace on dispositions,” said Green Street Advisors analysts in a note. “Financing has remained mostly
available for higher-yielding
strip centers, but commentary
from market participants in
recent months suggests that
the bid is softening for ‘noncore’ retail assets.”
Pressure has been mounting
on publicly traded mall own-
ers to monetize assets in the
private market, as the public
market heavily discounts the
value of retail properties.
Share prices of mall owners
have slid as bricks-and-mortar
stores lose relevance among
shoppers who are turning to
other shopping centers or to
online retail.
The retail storm has accelerated this year as landlords
grappled with a surge of tenant bankruptcies and store
closures. Major department
stores such as Macy’s, J.C.
Penney and Sears all have
downsized, closing hundreds
of stores.
DDR’s plan is similar to the
good-bank-bad-bank model the
financial-services
industry
used after the financial crisis
to prevent weak assets from
dragging down entire enterprises.
In DDR’s case, the goal is to
separate the stronger-per-
forming shopping centers
from the weaker ones.
The Beachwood, Ohio-based
real-estate investment trust
owns 286 centers across the
U.S. It plans to spin off 38
continental U.S. assets and all
12 of its Puerto Rico assets
into Retail Value Trust. The
assets have a combined value
of about $3 billion and accounted for roughly one-third
of DDR’s net operating income
in 2017. Retail Value Trust will
be externally managed by
DDR.
DDR said that while it will
be moving quickly to sell the
assets in Retail Value Trust, it
still intends to give itself flexibility in terms of a time frame.
“We have no incentive to
keep these around for any longer than we have to. But we
are not going to be forced into
taking silly prices for things,”
said Matthew Ostrower, chief
financial officer at DDR, dur-
ing the analyst call.
DDR has been an active
seller, disposing of $2 billion
of assets over the past two
years.
In the first three quarters
of this year, the company sold
39 shopping centers and land
parcels for more than $722
million.
The remaining company
will have a more geographically concentrated portfolio of
high-quality centers with
stronger growth opportunities,
Mr. Lukes said. Some of these
centers are based in the highest-income areas in the U.S.,
such as Los Angeles, Boston,
New York, Washington, Miami,
Charlotte and Atlanta.
Fitch Ratings said the
transaction, which will reduce
DDR’s exposure to weakness in
Puerto Rico and to at-risk tenants like Sears and Kmart, is a
positive for the company’s
credit.
ADVERTISEMENT
Business Real Estate
AREA DEVELOPMENT
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ADVERTISEMENT
Business Real Estate & Services
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0 1 2 0 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B10 | Wednesday, December 20, 2017
THE WALL STREET JOURNAL.
NY
BIGGEST 1,000 STOCKS
WSJ.com/stocks
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent four
quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or being
reorganized under the Bankruptcy Code,
or securities assumed by such companies.
The following explanations apply to NYSE,
NYSE Arca, NYSE American and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades as
well as trades reported by Nasdaq BX (formerly
Boston), Chicago Stock Exchange, Cboe, NYSE
National and Nasdaq ISE.
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.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Stock
Net
Sym Close Chg
A B C
s ABB
ABB 26.59
AECOM
ACM 37.20
AES
AES 10.65
Aflac
AFL 87.98
AGCO
AGCO 72.39
AGNC Invt
AGNC 20.02
Ansys
ANSS 147.63
ASML
ASML 177.03
AT&T
T
38.05
s AbbottLabs ABT 56.80
AbbVie
ABBV 97.92
Abiomed
ABMD 193.89
Accenture
ACN 152.22
ActivisionBliz ATVI 64.90
AcuityBrands AYI 171.86
Adient
ADNT 80.39
AdobeSystems ADBE 174.97
AdvanceAuto AAP 99.73
AdvMicroDevices AMD 10.95
AdvSemiEngg ASX
6.40
s Aegon
AEG
6.31
AerCap
AER 52.74
Aetna
AET 178.80
s AffiliatedMgrs AMG 202.20
AgilentTechs A
67.75
AgnicoEagle AEM 43.83
Agrium
AGU 109.40
AirProducts APD 162.52
AkamaiTech AKAM 66.82
AlaskaAir
ALK 73.19
Albemarle
ALB 132.02
Alcoa
AA
46.52
s AlexandriaRlEst ARE 131.60
AlexionPharm ALXN 115.72
Alibaba
BABA 171.28
AlignTech
ALGN 235.05
Alkermes
ALKS 51.80
Alleghany
Y
577.50
Allegion
ALLE 80.07
Allergan
AGN 169.57
AllianceData ADS 244.85
AlliantEnergy LNT 42.77
Net
Sym Close Chg
Stock
AllisonTransm ALSN 42.66
Allstate
ALL 104.38
AllyFinancial ALLY 28.85
0.16 AlnylamPharm ALNY 122.85
-0.37 Alphabet A GOOGL 1079.78
-0.30 Alphabet C GOOG 1070.68
-0.31 Altaba
AABA 70.21
-2.57 AlticeUSA
ATUS 19.96
MO 73.90
-0.49 Altria
0.04 AlumofChina ACH 17.19
0.66 Amazon.com AMZN 1187.38
ABEV 6.20
-0.41 Ambev
DOX 66.05
0.40 Amdocs
UHAL 381.88
-0.27 Amerco
AEE 59.49
3.82 Ameren
0.50 AmericaMovil A AMOV 17.16
-1.11 AmericaMovil AMX 17.33
1.06 AmerAirlines AAL 51.44
AEP 74.51
-0.22 AEP
-1.77 AmerExpress AXP 99.15
-2.98 AmericanFin AFG 105.55
-0.03 AmerHomes4Rent AMH 22.02
-0.04 AIG
AIG 59.78
0.03 AmerTowerREIT AMT 141.86
-0.28 AmerWaterWorks AWK 89.00
1.46 s Ameriprise
AMP 171.33
0.83 AmerisourceBrgn ABC 93.79
0.09 Ametek
AME 72.06
0.13 Amgen
AMGN 176.87
-0.10 Amphenol
APH 88.80
0.38 AnadarkoPetrol APC 49.39
1.15 AnalogDevices ADI
87.95
ANDV 110.38
-0.37 Andeavor
-0.06 AndeavorLog ANDX 46.64
BUD 111.78
1.95 AB InBev
NLY 11.85
-2.43 AnnalyCap
ANTM 227.99
-0.37 Anthem
AON 136.87
-2.09 Aon
APA 40.25
-0.42 Apache
43.24
-0.39 ApartmtInv AIV
1.27 ApolloGlbMgmt APO 32.50
AAPL 174.54
-2.49 Apple
-1.34 ApplMaterials AMAT 52.96
APTV 85.62
-2.37 Aptiv
-0.83 AquaAmerica WTR 37.59
Stock
Legal Notices
s
s
Net
Sym Close Chg s
ARMK 42.90 0.41
0.77 Aramark
31.89 0.24
0.22 ArcelorMittal MT
0.05 ArchCapital ACGL 90.52 -0.85
0.09 ArcherDaniels ADM 40.13 -0.09
ARNC 25.63 0.02
-5.31 Arconic
-6.46 AristaNetworks ANET 236.00 0.61
ARW 80.44 0.29
0.07 ArrowElec
0.70 AstraZeneca AZN 33.15 -0.19
ATH 50.49 -0.87
1.25 Athene
TEAM 46.87 0.06
0.03 Atlassian
-3.20 AtmosEnergy ATO 87.19 -1.52
ADSK 105.39 -2.09
-0.01 Autodesk
ATHM 62.72 -1.33
0.52 Autohome
ALV 127.15 -2.07
0.81 Autoliv
ADP 118.34 -0.30
-0.92 ADP
AZO 701.01 -3.39
-0.06 AutoZone
AVB 177.72 -4.74
-0.09 Avalonbay
AGR 50.82 -1.02
-0.05 Avangrid
-0.99 s AveryDennison AVY 117.10 0.98
-0.53 AxaltaCoating AXTA 31.39 -0.16
BBT 50.03 0.02
0.60 BB&T
BCE 47.63 0.09
-0.30 BCE
0.20 BHPBilliton BHP 43.29 -0.33
-0.98 BHPBilliton BBL 37.95 -0.47
BOKF 92.37 -0.50
-1.49 BOK Fin
BP
40.64 -0.20
1.31 BP
BRFS 10.79 -0.11
1.39 BRF
BT
18.28 -0.30
0.56 BT Group
BWXT 61.04
...
0.73 BWX Tech
BIDU 235.62 -5.31
-0.65 Baidu
0.86 BakerHughes BHGE 31.83 0.80
BLL 38.26 -0.27
-0.14 Ball
-1.57 BancoBilbaoViz BBVA 8.59 0.07
-0.86 BancodeChile BCH 95.19 -0.87
0.35 BancoMacro BMA 117.44 1.34
-0.33 s BcoSantChile BSAC 32.06 0.09
0.97 BancoSantander SAN
6.67 0.04
-0.32 BanColombia CIB
39.87 0.27
0.33 s BankofAmerica BAC 29.45 -0.03
-0.98 BankofMontreal BMO 78.55 0.06
-0.13 BankNY Mellon BK
54.20 -0.22
-1.88 BkNovaScotia BNS 63.98 -0.18
-0.44 BankofOzarks OZRK 48.30 -0.27
BCS 10.85
1.38 Barclays
...
BCR 333.83 0.02
-0.44 Bard CR
ADVERTISEMENT
s
s
s
s
s
s
s
s
To advertise: 800-366-3975 or WSJ.com/classifieds
s
NOTICE OF SALE
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BaxterIntl
BAX 65.78 0.33
BectonDicknsn BDX 221.33 -0.40
Berkley
WRB 70.10 -0.45
BerkHathwy B BRK.B 197.91 -1.43
BerkHathwy A BRK.A 296992-2368.00
BerryGlobal BERY 59.43 -0.04
BestBuy
BBY 65.80 -1.21
Bio-RadLab A BIO 247.16 -2.08
Biogen
BIIB 327.02 1.07
BioMarinPharm BMRN 90.85 -1.75
BlackKnight BKI
44.25 -0.50
BlackBerry
BB
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BlackRock
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Blackstone
BX
31.70 -0.10
BlueBuffaloPet BUFF 31.50 -0.50
bluebirdbio BLUE 182.10 -2.25
Boeing
BA 297.25 1.11
BorgWarner BWA 52.20 0.01
BostonProps BXP 128.84 -2.12
BostonSci
BSX 25.49 -0.29
Braskem
BAK 26.60 -0.49
BrightHorizons BFAM 94.71 0.14
BrighthouseFin BHF 58.34 -0.34
Bristol-Myers BMY 61.56 -0.84
BritishAmTob BTI
66.58 -0.17
Broadcom
AVGO 263.70 -0.69
BroadridgeFinl BR
91.16 0.24
BrookfieldMgt BAM 43.41 -0.39
BrookfieldInfr BIP
43.95 -0.22
Brown&Brown BRO 51.50 0.03
Brown-Forman B BF.B 67.70 0.14
Brown-Forman A BF.A 66.88 0.19
BuckeyePtrs BPL 48.08 -0.88
Bunge
BG
66.91 -0.12
BurlingtonStrs BURL 117.94 2.12
CA
CA
33.65 -0.09
CBD Pao
CBD 21.67 -0.32
CBRE Group CBG 43.50 -0.70
CBS B
CBS 59.46 0.46
CBS A
CBS.A 60.23 0.73
CDK Global CDK 71.46 0.01
CDW
CDW 70.02 -0.06
CF Industries CF
41.20 0.27
CGI Group
GIB
53.37 -0.26
CH Robinson CHRW 86.63 -0.53
CIT Group
CIT
49.58 -0.34
CME Group CME 150.16 -1.12
CMS Energy CMS 47.72 -0.93
CNA Fin
CNA 52.59 -0.08
CNOOC
CEO 139.41 0.15
CRH
CRH 34.55 0.26
CSX
CSX 54.85 1.26
CVS Health CVS 72.31 0.64
CabotOil
COG 26.82 -0.27
CadenceDesign CDNS 43.76 0.20
CaesarsEnt CZR 12.70 0.10
CalAtlantic
CAA 55.20 -0.38
CamdenProperty CPT 91.53 -2.54
CampbellSoup CPB 48.78 -0.88
CIBC
CM
94.51 0.94
CanNtlRlwy CNI
81.31 0.80
CanNaturalRes CNQ 33.80 0.10
CanPacRlwy CP 179.25 0.17
Canon
CAJ 38.44 -0.23
CapitalOne COF 98.74 -0.57
CardinalHealth CAH 63.01 0.62
Carlisle
CSL 112.85 -0.41
Carlyle
CG
21.50 -0.20
CarMax
KMX 67.85 -0.67
Carnival
CCL 68.13 1.53
Carnival
CUK 67.71 1.64
Caterpillar
CAT 150.91 1.14
Cavium
CAVM 85.82 0.34
CboeGlobalMkts CBOE 124.65 -1.14
Celanese A CE 107.98 -0.52
Celgene
CELG 107.06 -0.98
Cemex
CX
7.40 -0.08
CenovusEnergy CVE
8.53 0.02
Centene
CNC 100.94 3.01
CenterPointEner CNP 28.01 -0.45
CentraisElBras EBR
5.25 -0.18
CenturyLink CTL 17.40 -0.35
Cerner
CERN 68.63 -0.35
CharterComms CHTR 316.97 -6.26
CheckPoint CHKP 104.94 -0.56
Chemours
CC
49.75 -0.41
CheniereEnergy LNG 49.28 -0.40
Net
Sym Close Chg
Stock
s
s
s
s
t
s
s
s
CheniereEnerPtrs CQP 28.03
CheniereEnHldgs CQH 27.01
Chevron
CVX 119.84
ChinaEastrnAir CEA 32.93
ChinaLifeIns LFC 15.64
ChinaLodging HTHT 134.21
ChinaMobile CHL 49.25
ChinaPetrol SNP 71.24
ChinaSoAirlines ZNH 48.98
ChinaTelecom CHA 47.60
ChinaUnicom CHU 13.47
Chipotle
CMG 313.17
Chubb
CB 147.62
ChunghwaTel CHT 34.93
Church&Dwight CHD 49.22
Cigna
CI
207.26
CimarexEnergy XEC 113.05
CincinnatiFin CINF 73.55
Cintas
CTAS 158.99
CiscoSystems CSCO 38.30
Citigroup
C
74.70
CitizensFin CFG 42.08
CitrixSystems CTXS 87.86
Clorox
CLX 148.05
Coca-Cola
KO
46.13
Coca-Cola Euro CCE 39.37
Coca-Cola Femsa KOF 69.72
Cognex
CGNX 62.46
CognizantTech CTSH 71.93
Coherent
COHR 296.59
ColgatePalm CL
74.85
ColonyNorthStar CLNS 11.83
Comcast A CMCSA 39.14
Comerica
CMA 86.54
CommerceBcshrs CBSH 56.48
CommScope COMM 37.83
SABESP
SBS 10.13
ConagraBrands CAG 37.98
ConchoRscs CXO 140.31
ConocoPhillips COP 52.68
ConEd
ED
85.56
ConstBrands A STZ 223.23
ContinentalRscs CLR 48.35
Cooper
COO 223.88
Copart
CPRT 44.04
Corning
GLW 32.26
CoStar
CSGP 298.86
Costco
COST 188.33
Coty
COTY 19.38
Credicorp
BAP 204.63
CreditAcceptance CACC 334.87
CreditSuisse CS
17.78
CrownCastle CCI 108.55
CrownHoldings CCK 56.53
Ctrip.com
CTRP 44.32
Cullen/Frost CFR 96.01
Cummins
CMI 174.00
NOTICE OF SALE
LEGAL
NOTICES
no
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Net
Sym Close Chg
Stock
-0.25 DrPepperSnap DPS 94.23 0.07
-0.14 DrReddy'sLab RDY 36.87 -0.54
0.14 DukeEnergy DUK 85.01 -1.53
1.12 DukeRealty DRE 27.27 -0.58
E
32.98 -0.03
0.15 ENI
EOG 101.43 1.52
1.80 EOG Rscs
EQT 54.42 -0.91
-0.21 EQT
0.19 EQT Midstream EQM 71.36 -0.99
ETFC 49.57 -0.21
1.31 E*TRADE
EXAS 53.54 0.72
-0.84 EXACT Sci
EastWestBncp
EWBC
61.14 -0.36
-0.04
-0.25 EastmanChem EMN 92.33 0.59
ETN 76.86 -0.20
-0.24 Eaton
57.08 0.48
-0.09 s EatonVance EV
eBay
EBAY
37.80 -0.38
-0.04
Ecolab
ECL
135.09
-0.75
0.92
EC
13.21 0.11
-0.61 s Ecopetrol
EIX
69.85 -1.10
-0.53 EdisonInt
-0.89 EdwardsLife EW 114.32 -0.60
ElectronicArts
EA
107.00 -0.34
-0.18
-0.97 EmersonElec EMR 68.54 0.18
EnbridgeEnPtrs
EEP
14.17 -0.49
0.05
ENB 38.83 -0.24
0.09 Enbridge
ECA 11.19 -0.02
-0.05 Encana
0.20 EnelAmericas ENIA 10.61 -0.25
EnelGenChile
EOCC
26.52 0.12
0.02
-1.08 EnergyTransferEq ETE 16.86 -0.14
0.72 EnergyTransfer ETP 17.44 -0.20
ETR 81.03 -1.66
0.06 Entergy
-2.19 EnterpriseProd EPD 26.24 -0.17
Equifax
EFX 119.44 1.11
0.86
Equinix
EQIX 448.52 -7.30
-0.24
EquityLife
ELS 89.30 -2.41
-0.40
EquityResdntl EQR 64.30 -1.30
0.28
Ericsson
ERIC 6.64 -0.07
-0.02
EssexProp
ESS 242.82 -7.05
0.01
EsteeLauder EL 127.84 -1.55
0.05
EverestRe
RE 218.88 -0.34
0.21
EversourceEner ES
62.59 -1.32
1.80
Exelixis
EXEL 26.68 0.61
0.34
Exelon
EXC 39.62 -0.86
-1.76
Expedia
EXPE 121.46 -0.50
0.81
ExpeditorsIntl EXPD 64.67 -0.29
0.01
s ExpressScripts ESRX 73.66 0.28
-0.18
ExtraSpaceSt EXR 86.20 -1.38
-0.34
ExxonMobil XOM 82.44 -0.50
-0.06
F5Networks FFIV 131.51 -0.36
1.61
FMC
FMC 94.47 0.52
-3.98
Facebook
FB 179.51 -1.31
-0.32
FactSet
FDS 187.46 -17.27
2.38
Fastenal
FAST 53.33 -0.38
2.09
FederalRealty FRT 132.03 -1.85
-0.08
FedEx
FDX 242.54 0.63
-1.08
Ferrari
RACE 105.47 -1.24
-1.25
FiatChrysler FCAU 18.21 0.01
-0.19
FibriaCelulose FBR 14.57 -0.12
0.25
FidNatlFin
FNF 39.18 -0.49
1.96 FidNatlInfo
FIS
95.00 -0.25
FifthThirdBncp FITB 30.62
58.com
WUBA 70.92
DISH Network DISH 48.47 -1.38 s FirstAmerFin FAF 57.02
FDC 16.40
DTE Energy DTE 109.01 -2.15 FirstData
DXC Tech
DXC 94.93 -0.98 FirstRepBank FRC 88.40
FSLR 69.15
Danaher
DHR 94.38 0.02 FirstSolar
31.01
Darden
DRI 96.69 6.15 FirstEnergy FE
FISV 132.16
DaVita
DVA 71.80 0.73 Fiserv
Deere
DE 154.48 0.44 FleetCorTech FLT 188.86
FLEX 18.50
DellTechs
DVMT 83.34 -1.43 Flex
DeltaAir
DAL 55.75 -0.32 s FlirSystems FLIR 47.47
FLR 50.62
DentsplySirona XRAY 66.60 -0.05 Fluor
DeutscheBank DB
19.85 -0.25 FomentoEconMex FMX 93.60
F
12.69
DevonEnergy DVN 38.70 0.64 FordMotor
Diageo
DEO 142.08 -0.72 ForestCIty A FCE.A 24.07
FTNT 45.09
DiamondbkEner FANG 111.81 2.16 s Fortinet
FTS 35.79
DigitalRealty DLR 111.78 -2.32 Fortis
Fortive
FTV 72.73
DiscoverFinSvcs DFS 75.95 -0.01
FortBrandsHome
FBHS
67.69
DiscovComm C DISCK 20.84 0.43
DiscovComm A DISCA 22.01 0.37 Franco-Nevada FNV 76.27
Disney
DIS 111.81 0.78 FranklinRscs BEN 43.68
DolbyLab
DLB 62.44 -0.16 FreeportMcM FCX 17.33
DollarGeneral DG
92.10 -0.45 FreseniusMed FMS 52.13
DollarTree
DLTR 109.17 0.07
DominionEner D
81.34 -1.41
Domino's
DPZ 187.06 1.06 GGP
GGP 23.37
Donaldson
DCI
48.96 0.13 Gallagher
AJG 64.40
DouglasEmmett DEI
40.81 -0.58 Gaming&Leisure GLPI 36.93
Dover
DOV 99.54 0.27 Gap
GPS 34.31
DowDuPont DWDP 71.42 0.03 s GardnerDenver GDI 33.29
D E F
s
s
s
s
Stock
s
s
s
s
s
s
s
s
0.15 s
-0.77
0.26 s
0.14
-0.41
-1.48
-0.50
-0.18 s
-1.82
0.53
-0.34
-0.22
-2.00
0.03
-0.22
0.82
-0.62
...
0.21
-0.18
0.03
-0.02
-0.02
s
G H I
Net
Sym Close Chg
Garmin
GRMN 58.58
Gartner
IT
123.45
Gazit-Globe GZT 10.20
GeneralDynamics GD 199.83
GeneralElec GE
17.59
GeneralMills GIS
57.63
GeneralMotors GM
42.49
Genpact
G
32.66
Gentex
GNTX 20.48
GenuineParts GPC 93.01
Gerdau
GGB
3.64
Gildan
GIL
32.15
GileadSciences GILD 74.35
GSK
GSK 35.36
GlobalPayments GPN 102.72
GoDaddy
GDDY 50.81
Goldcorp
GG
12.32
GoldmanSachs GS 256.48
Goodyear
GT
32.17
Graco
GGG 134.45
Grainger
GWW 228.59
GreatPlainsEner GXP 32.37
Grifols
GRFS 22.09
GrubHub
GRUB 73.18
GpoAeroportuar PAC 104.62
GpoAvalAcc AVAL 8.54
GpoFinGalicia GGAL 66.08
GpFinSantMex BSMX 7.56
GrupoTelevisa TV
19.17
HCA Healthcare HCA 88.83
HCP
HCP 26.10
HDFC Bank HDB 99.62
HD Supply
HDS 38.68
HP
HPQ 21.42
HSBC
HSBC 50.54
Halliburton HAL 45.87
Hanesbrands HBI 20.87
HarleyDavidson HOG 51.19
Harris
HRS 142.57
HartfordFinl HIG 56.73
Hasbro
HAS 91.67
HealthcareAmer HTA 30.70
Heico A
HEI.A 81.00
Heico
HEI 97.20
Helm&Payne HP
59.60
HenrySchein HSIC 71.49
Herbalife
HLF 68.06
Hershey
HSY 115.45
Hess
HES 43.36
HewlettPackard HPE 14.80
Hilton
HLT 77.81
HollyFrontier HFC 47.59
Hologic
HOLX 43.49
HomeDepot HD 185.98
HondaMotor HMC 34.28
Honeywell
HON 154.11
HormelFoods HRL 36.82
DR Horton
DHI 50.80
HostHotels HST 20.28
HuanengPower HNP 25.16
Hubbell
HUBB 132.15
Humana
HUM 245.16
JBHunt
JBHT 112.74
HuntingtonBcshs HBAN 14.61
HuntingIngalls HII 238.00
Huntsman
HUN 32.82
HyattHotels H
71.67
IAC/InterActive IAC 125.16
ICICI Bank
IBN
9.72
IdexxLab
IDXX 157.39
IHSMarkit
INFO 45.07
ING Groep
ING 18.50
Invesco
IVZ
36.61
IPG Photonics IPGP 213.14
IQVIA
IQV 101.26
IRSA Prop
IRCP 56.11
IcahnEnterprises IEP
51.28
Icon
ICLR 114.35
IDEX
IEX 132.13
IllinoisToolWks ITW 167.46
Illumina
ILMN 214.74
ImperialOil
IMO 29.96
Incyte
INCY 95.02
Infosys
INFY 15.99
Ingersoll-Rand IR
86.74
Ingredion
INGR 140.33
Intel
INTC 47.04
InteractiveBrkrs IBKR 59.98
-0.05
-0.98
0.11
1.38
-0.17
-0.17
0.34
0.02
-0.11
-0.43
0.02
0.26
-0.78
0.06
1.36
0.45
-0.06
-3.54
0.19
1.01
-1.33
-0.60
-0.01
-0.48
-1.38
0.04
0.99
0.10
-0.02
-0.86
-0.88
1.10
0.18
0.13
-0.16
0.39
-0.25
-0.46
-0.10
1.09
0.12
-0.91
1.35
1.24
1.61
1.33
-0.14
1.19
-0.24
-0.10
-0.28
-0.85
0.13
1.25
0.25
-0.48
-0.25
-0.65
-0.30
-0.08
1.21
-1.22
-0.09
-0.07
-0.60
0.16
-0.28
0.91
0.14
0.09
-0.46
0.10
-0.20
0.49
-1.22
1.11
-0.57
1.88
0.19
1.40
-2.55
0.28
1.46
-0.05
0.10
-1.38
0.78
-0.36
Net
Sym Close Chg
Stock
ICE
ICE
s InterContinentl IHG
IBM
IBM
IntlFlavors
IFF
IntlPaper
IP
Interpublic
IPG
Intuit
INTU
IntuitiveSurgical ISRG
InvitatHomes INVH
IonisPharma IONS
IronMountain IRM
IsraelChemicals ICL
ItauUnibanco ITUB
ADVERTISE TODAY
(800) 366-3975
sales.legalnotices
@wsj.com
For more
information visit:
wsj.com/classifieds
s
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Net
Sym Close Chg
-0.14 LiveNationEnt LYV 44.06
3.65
-0.17 LloydsBanking LYG
-0.10 LockheedMartin LMT 319.97
L
49.64
0.06 Loews
0.35 LogitechIntl LOGI 33.71
LOGM 116.75
0.06 LogMeIn
LOW 88.86
-1.25 s Lowe's
LULU 76.57
-4.55 s lululemon
-0.35 LyondellBasell LYB 108.95
-1.36
0.01
-0.09 M&T Bank
MTB 173.90
-0.05 MGM Resorts MGM 32.84
0.50
...
-2.79
-0.34
-0.14
-3.70
1.42
0.02
-0.61
M N
1.29
-0.45
-0.39
-0.35
-0.10
0.71
-0.54
-0.23
-0.02
-0.05
-3.96
-0.16
-0.39
-0.25
0.14
0.40
-0.19
1.02
-0.17
-0.04
-0.05
-1.43
0.92
-0.54
-0.08
...
-0.40
-0.18
-0.10
-0.85
-0.05
-1.06
0.12
-0.67
-0.28
-0.90
0.41
-1.26
2.49
-2.96
-0.79
-0.27
0.85
-0.49
0.86
-0.20
-0.45
-0.48
-0.45
-1.00
-0.15
-2.00
-2.27
-0.38
-0.38
-0.15
-0.28
0.58
0.82
-1.20
0.21
0.11
-0.10
-0.11
-0.67
-0.54
-1.01
0.63
-0.03
0.37
0.10
0.13
s
s
s
s
0.04
-0.11
MPLX
MPLX 36.26 -0.32
MSCI
MSCI 126.97 -0.31
Macerich
MAC 65.86 0.18
Macy's
M
25.25 -0.60
MagellanMid MMP 69.05 -0.15
MagnaIntl
MGA 57.19 0.20
Manpower
MAN 126.29 -0.10
ManulifeFin MFC 20.83 0.10
MarathonOil MRO 16.02 0.59
MarathonPetrol MPC 64.75 -1.26
Markel
MKL 1130.91 -2.56
MarketAxess MKTX 202.10 2.74
Marriott
MAR 133.14 -0.20
Marsh&McLen MMC 82.52 0.02
MartinMarietta MLM 203.67 -3.96
MarvellTech MRVL 22.37 0.21
Masco
MAS 43.00
...
Mastercard MA 151.68 -1.44
MatchGroup MTCH 30.83 0.33
MaximIntProducts MXIM 53.17 -0.34
McCormickVtg MKC.V 101.63 -0.13
McCormick MKC 101.57 -0.12
McDonalds MCD 173.39 -0.81
McKesson
MCK 159.97 -0.29
Medtronic
MDT 82.04 -1.39
MelcoResorts MLCO 28.24 0.78
MercadoLibre MELI 329.28 3.16
Merck
MRK 56.23 0.01
MetLife
MET 50.79 -0.14
MettlerToledo MTD 635.07 -7.92
MichaelKors KORS 63.36 0.17
MicroFocus MFGP 33.12 -0.59
MicrochipTech MCHP 89.59 0.62
MicronTech MU
43.98 0.27
Microsemi
MSCC 52.17 -1.29
Microsoft
MSFT 85.83 -0.55
MidAmApt MAA 99.50 -3.45
Middleby
MIDD 130.85 -1.13
MitsubishiUFJ MTU 7.25 -0.07
MizuhoFin
MFG 3.64 -0.05
MobileTeleSys MBT 9.60
...
MohawkInds MHK 276.56 1.42
MolsonCoors B TAP 80.70 -0.15
Mondelez
MDLZ 43.25 0.14
Monsanto
MON 116.00 -1.57
MonsterBev MNST 64.21 0.18
Moody's
MCO 150.15 -0.32
MorganStanley MS
52.93 -0.31
Mosaic
MOS 24.49 -0.02
MotorolaSol MSI 93.28 -1.21
Mylan
MYL 41.24 -0.43
NRG Energy NRG 27.25 -0.34
NTTDoCoMo DCM 23.70 -0.33
NVR
NVR 3387.63 -13.19
NXP Semi
NXPI 116.45 -0.34
Nasdaq
NDAQ 76.11 -0.86
NationalGrid NGG 58.41 -0.03
NatlOilwell
NOV 33.62 0.28
NatlRetailProp NNN 42.94 -0.68
NektarTherap NKTR 57.05 0.15
NetApp
NTAP 57.91 0.18
Netease
NTES 361.87 -1.53
Netflix
NFLX 187.02 -3.40
Neurocrine
NBIX 68.88 -1.69
NewOrientalEduc EDU 90.89 -0.99
NY CmntyBcp NYCB 13.30 0.04
NewellBrands NWL 30.81 -0.03
NewmontMin NEM 36.35 -0.30
NewsCorp A NWSA 16.27 -0.06
NewsCorp B NWS 16.65 0.05
NextEraEnergy NEE 154.10 -2.25
NielsenHoldings NLSN 37.50 -0.03
Nike
NKE 64.24 -0.57
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Professor of Finance
Endicott College is accepting applications for the
School of Business at the Beverly, MA campus.
Must have extensive work exp in finance - e.g. inv
banking, private equity, consulting, asset mgmt,
etc - in a client facing position. College level
teaching exp desirable. Masters in Finance, MBA
with a concentration in Finance, CFA or preferably
a PhD in Economics or Finance. Please send CV to:
humanresources@endicott.edu
Phelps County Regional Medical
Center in Rolla , MO is looking for a
General Cardiologist.
Send CV to Beth Hedrick
ehedrick@pcrmc.com
s
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Continued on Page B13
Exchange-Traded
Portfolios
Largest 100 exchange-traded funds,
latest session
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
Stock
J K L
Career Opportunities
C
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
0.09
0.55
0.17
-0.12
-0.09
71.07
61.74
153.23
154.40
57.76
20.39
159.88
367.35
23.67
50.93
37.95
3.94
12.44
JD.com
JD
42.97
JPMorganChase JPM 106.51
JackHenry
JKHY 117.89
JacobsEngg JEC 66.39
JamesHardie JHX 17.06
JanusHenderson JHG 38.12
JazzPharma JAZZ 133.55
JetBlue
JBLU 21.59
J&J
JNJ 141.78
JohnsonControls JCI
37.46
JonesLang
JLL 146.87
JuniperNetworks JNPR 28.44
KAR Auction KAR 50.32
KB Fin
KB
56.97
KKR
KKR 20.77
KLA Tencor KLAC 111.62
KT
KT
15.47
KSCitySouthern KSU 112.07
Kellogg
K
65.47
KeyCorp
KEY 20.12
KeysightTechs KEYS 43.00
KilroyRealty KRC 74.75
KimberlyClark KMB 120.57
KimcoRealty KIM 18.31
KinderMorgan KMI 17.92
Knight-Swift KNX 43.75
Kohl's
KSS 52.88
KoninklijkePhil PHG 39.01
KoreaElcPwr KEP 17.84
KraftHeinz
KHC 78.52
Kroger
KR
26.95
Kyocera
KYO 66.35
LATAMAirlines LTM 13.95
L Brands
LB
60.34
LG Display
LPL 13.40
LINE
LN
41.54
LKQ
LKQ 40.80
L3 Tech
LLL 192.94
LabCpAm
LH 163.95
LamResearch LRCX 186.11
LamarAdv
LAMR 76.05
LambWeston LW
55.85
LasVegasSands LVS 71.97
Lazard
LAZ 51.03
Lear
LEA 177.37
Leggett&Platt LEG 46.94
Leidos
LDOS 64.74
Lennar A
LEN 61.88
Lennar B
LEN.B 49.02
LennoxIntl
LII
205.97
LeucadiaNatl LUK 25.71
LibertyBroadbandA LBRDA 82.19
LibertyBroadbandC LBRDK 82.06
LibertyGlobal A LBTYA 32.53
LibertyGlobal C LBTYK 31.51
LibertyLiLAC C LILAK 21.55
LibertyLiLAC A LILA 21.89
LibertyQVC B QVCB 26.00
LibertyQVC A QVCA 26.23
LibertyVenturesA LVNTA 55.98
LibertyFormOne C FWONK 35.74
LibertyFormOne A FWONA 34.06
LibertyBraves A BATRA 23.53
LibertyBraves C BATRK 23.54
LibertySirius C LSXMK 39.48
LibertySirius A LSXMA 39.61
LibertyProperty LPT 43.19
EliLilly
LLY 86.71
LincolnElectric LECO 90.88
LincolnNational LNC 76.81
LionsGate A LGF.A 33.40
LionsGate B LGF.B 31.35
ADVERTISEMENT
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Sym Close Chg
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Tuesday, December 19, 2017
Stock
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.
How to Read the Stock Tables
ETF
Tuesday, December 19, 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
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
10.75
98.72
56.92
69.35
27.94
100.76
83.64
75.07
109.19
104.61
122.12
65.48
55.17
62.10
269.13
189.25
76.78
61.14
109.01
98.27
72.54
53.07
12.12
120.81
87.12
115.92
106.27
71.73
69.80
63.40
45.75
43.65
59.61
106.11
110.23
135.76
149.37
124.49
186.83
153.08
126.77
158.92
208.30
89.00
216.23
153.86
113.72
38.30
113.35
83.91
105.40
125.53
120.87
101.66
157.70
47.77
22.97
36.51
119.82
33.74
64.55
63.83
247.40
344.60
267.17
93.97
64.73
53.42
22.13
167.14
133.03
160.68
102.38
44.80
44.77
58.68
70.17
54.46
141.93
155.56
86.24
83.78
87.22
123.36
154.96
111.62
83.82
246.75
79.17
79.42
147.90
81.44
55.05
56.57
137.94
73.81
106.72
65.13
59.20
31.81
–0.92 –14.7
–0.13 21.3
0.12 10.1
0.14 –7.9
–0.43 20.2
–0.34 16.3
–0.12 21.3
0.03 20.7
0.9
–0.18
–0.04 –0.3
–0.24 –0.3
–0.33 22.1
–0.46 30.0
–1.48 23.0
–0.39 19.6
–0.44 14.5
–0.90 11.7
–0.42 19.2
0.9
–0.29
–1.32 11.0
–0.37 18.5
–0.56 17.4
9.4
0.08
3.1
–0.51
0.7
–0.21
5.2
–0.22
–0.29 –0.1
–1.24 21.2
–0.37 20.9
–1.28 27.2
–0.53 30.7
0.07 26.2
–1.01 22.0
–0.24 20.0
1.9
–0.31
–0.35 29.4
–0.37 20.0
–0.37 11.1
–0.54 21.4
–0.79 13.5
6.6
–0.99
–0.40 19.5
–0.37 16.5
–0.56 10.7
–0.35 18.7
–0.34 26.3
–0.38 12.2
2.9
–0.08
0.2
–0.30
–0.05 –0.6
0.6
–0.45
5.4
–1.30
–0.16 24.1
0.3
–0.01
–0.59 33.1
–0.62 14.9
–0.22 –1.7
0.2
–0.18
9.3
0.08
–0.35 21.9
–0.39 19.1
–0.37 19.8
–0.16 25.3
–0.41 14.2
–0.38 19.5
9.8
–0.31
–0.61 33.9
–1.82 10.0
5.8
–0.14
–0.53 37.6
9.9
–0.62
–0.43 20.7
... 20.2
–0.31 22.6
–0.27 25.1
–0.06 22.4
–0.45 18.2
–0.31 23.3
–0.43 27.3
–0.13 22.7
–0.30 13.8
0.9
–0.40
1.8
–0.37
–0.39 20.5
–0.37 17.7
–0.36 14.8
1.6
–2.13
–0.36 20.2
–0.06 –0.4
0.1
–0.03
–0.51 14.7
0.8
–0.31
1.4
–0.34
–0.30 23.3
–0.40 19.6
–0.35 21.0
–0.29 14.7
–0.28 13.5
–0.35 19.5
–0.40 13.4
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B11
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24754.75 t 37.45, or 0.15%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.80 21.79
P/E estimate *
20.09 18.64
Dividend yield
2.12
2.38
All-time high 24792.20, 12/18/17
Nasdaq Composite Index
Last
2681.47 t 8.69, or 0.32%
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: 2690.16, 12/18/17
Last Year ago
6963.85 t 30.91, or 0.44%
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: 6994.76, 12/18/17
Current divisor 0.14523396877348
25200
2700
7000
24500
2650
6875
23800
2600
6750
23100
2550
6625
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
6500
2500
22400
65-day moving average
65-day moving average
65-day moving average
6375
2450
21700
Bars measure the point change from session's open
Oct.
Nov.
6250
2400
21000
Sept.
Sept.
Dec.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
Latest
Close
Low
Net chg
% chg
52-Week
Low
High
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
747.62
Utility Average
Total Stock Market
Barron's 400
0.13
13.65
733.84 -12.00 -1.61
733.71
-0.37
27870.00 27719.97 27727.71 -102.32
717.89
712.79
712.79 -3.82
Nasdaq Stock Market
Nasdaq Composite
6995.88
Nasdaq 100
6510.87
Standard & Poor's
500 Index
-0.15
24850.11 24715.60 24754.75 -37.45
Transportation Avg 10550.68 10479.41 10535.91
6951.49
6462.79
2694.44
-0.53
-0.44
6963.85 -30.91
6480.67 -32.60
2680.74
2681.47
-8.69
25.3
11.6
8783.74
13.2
16.5
5.4
774.47
651.14
11.1
11.3
6.2
27830.03 23276.73
716.60
600.24
17.4
16.8
19.1
18.5
8.8
9.7
-0.32
2690.16
-0.43
1905.30
945.12
1909.26
946.74
1896.15
936.26
1897.03
936.62
-8.27
-8.50
-0.90
Other Indexes
Russell 2000
1552.21
1535.91
1536.75 -12.17
-0.79
5383.12
4863.62
27.0
30.8
2238.83
1660.58
815.62
29.4
33.2
18.1
19.8
12.4
9.6
14.2
11.8
Volume, Advancers, Decliners
Company
Volume
(000)
Symbol
SPDR S&P 500
9.0
9.4
11.0
564.49
560.92
560.96
-2.41
NYSE Arca Biotech
4169.58
4133.21
4148.85
-7.31
NYSE Arca Pharma
550.22
547.87
547.87
-1.00
KBW Bank
108.08
107.05
-0.43
PHLX§ Gold/Silver
107.09
81.94
81.07
-0.11
PHLX§ Oil Service
81.57
139.03
136.93
137.96
1.33
1281.06
10.15
1269.82
9.18
1276.52
10.03
-1.39
0.50
PHLX§ Semiconductor
Cboe Volatility
Philadelphia Stock Exchange
7,990.6
After Hours
% chg
High
0.10
45.95
1.97
4,931.1 171.25
-0.03
Region/Country Index
Close
1548.92
-0.30
1345.24
11.0
12785.82 11056.89
13.2
4.48
46.52
42.60
-0.02 171.78 171.00
CenturyLink
CTL
4,824.7
17.40
…
unch.
17.46
LendingClub
LC
4,503.9
4.05
…
unch.
4.05
4.05
VanEck Vectors Gold Miner GDX
4,419.7
22.11
-0.02
-0.09
22.15
22.10
AT&T
T
4,272.8
38.03
-0.02
-0.05
38.49
37.95
Bank of America
BAC
3,478.3
29.46
0.01
0.03
29.71
29.42
Percentage gainers…
8.7
14.1
15.3
5.4
-0.43
563.37
503.24
8.8
10.8
3.9
-0.18
4304.77
3075.02
29.9
34.9
5.4
17.39
5.0
4.45
0.20
4.71
4.45
4.25
7,990.6
45.95
1.97
4.48
46.52
42.60
NAVI
66.9
13.60
0.47
3.58
13.60
13.13
CAMP
10.8
23.89
0.68
2.93
23.94
23.21
VSAR
36.8
2.05
0.05
2.50
2.10
1.96
Stitch Fix Cl A
SFIX
295.5
21.90
-2.86
-11.55
25.00
21.50
Intellicheck
IDN
9.8
2.61
-0.34
-11.53
3.00
2.61
Micron Technology
MU
Navient Corp.
CalAmp
Versartis
...And losers
-0.18
560.52
469.13
14.2
13.8
0.2
-0.40
107.52
88.02
14.8
16.7
13.2
-0.13
96.72
73.03
10.5
3.4
5.6
192.66
117.79
-26.3
-24.9 -14.0
Intersections
INTX
5.9
2.08
-0.20
-8.72
2.08
2.08
901.69 39.1
9.14 -12.4
40.8 23.0
-28.6 -15.3
Steelcase
SCS
20.5
13.35
-1.00
-6.97
14.35
12.50
Presbia
LENS
5.0
4.41
-0.24
-5.16
4.48
4.30
0.97
-0.11
1341.69
16.04
5.25
Percentage Gainers...
Latest
% chg
Net chg
3064.76
394.50
262.47
–8.16
–1.20
–0.70
–0.27
–0.30
–0.27
DJ Americas
641.94
Sao Paulo Bovespa 72680.37
S&P/TSX Comp
16133.35
S&P/BMV IPC
48403.03
Santiago IPSA
4228.74
–2.32
–435.08
1.71
–231.51
–8.32
–0.36
–0.60
391.02
391.72
4020.87
5382.91
13215.79
1473.56
22274.97
552.03
1134.58
10234.30
577.39
9399.17
7544.09
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6071.80
Shanghai Composite 3296.54
Hang Seng
29253.66
S&P BSE Sensex
33836.74
Nikkei Stock Avg
22868.00
Straits Times
3404.47
Kospi
2478.53
Weighted
10467.34
21.1
21.0
22.7
18.8
20.7
5.5
6.0
31.2
0.01
8.2
11.8
11.5
10.7
15.1
0.2
15.8
14.3
–1.5
9.4
8.0
14.3
5.6
–1.64 –0.42
–1.76 –0.45
–0.09
–3.78
–37.67 –0.69
–96.51 –0.72
–0.02
–0.25
–115.56 –0.52
–0.23
–1.26
–13.33 –1.16
–0.10
–9.80
–0.27
–1.55
–53.15 –0.56
0.09
7.08
32.90
28.62
203.25
235.06
–33.77
–10.35
–3.35
–39.18
no
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
–0.48
–0.20
YTD
% chg
n-
The Global Dow
DJ Global Index
DJ Global ex U.S.
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
0.54
0.88
0.70
0.70
–0.15
–0.30
–0.13
–0.37
7.2
6.2
33.0
27.1
19.6
18.2
22.3
13.1
Company
Symbol
Presbia
Pfenex
Wins Finance Holdings
Intellicheck
ION Geophysical
LENS
Meet Group
Tyme Technologies
Cerecor
Conatus Pharmaceuticals
Kingtone Wirelessinfo ADR
MEET
Technical Communications
Intersections
Bridgeline Digital
China Recycling Energy
Madrigal Pharmaceuticals
TCCO
4.65 2.11
3.38 1.30
WINS 323.99 105.99
IDN
2.95 0.71
IO
17.35 3.25
PFNX
22.41
20.57
17.51
17.12
16.55
8.25 1.05
2.28 0.28
2.69 0.32
3.09 0.36
94.65 10.61
14.58
14.00
13.50
13.19
12.62
TYME
CERC
CNAT
KONE
BLIN
CREG
MDGL
83.07
62.50
48.62
31.70
23.05
0.52
0.87
0.38
0.75
0.68
2.84
5.10
2.55
5.13
4.79
INTX
High
52-Week
Low
% chg
Company
Symbol
24.0
-65.4
86.2
10.5
146.1
Yield10 Bioscience
Document Security
On Track Innovations
U.S. Global Investors A
China Commercial Credit
YTEN
2.19
1.01
0.34
3.77
2.63
-45.6
56.9
136.1
8.5
7.9
Xunlei ADR
Immucell
Spectrum Pharmaceuticals
Social Reality Cl A
Siebert Financial
XNET
9.30 2.20
5.75 1.88
5.10 1.86
9.39 0.95
101.00 13.09
251.2
-44.3
-15.9
106.0
495.7
ADOMANI
Glu Mobile
McDermott International
ShiftPixy
Digital Power
ADOM
7.14 1.86
9.79 2.07
465.00 19.80
4.55 1.80
17.45 3.20
6.45
9.50
2.83
9.40
8.00
Most Active Stocks
Company
Symbol
SPDR S&P 500
General Electric
Bank of America
Finl Select Sector SPDR
iShares MSCI Emg Markets
SPY
Twitter
On Track Innovations
Advanced Micro Devices
Micron Technology
Pareteum
TWTR
BAC
XLF
EEM
Volume % chg from Latest Session
(000) 65-day avg Close % chg
44,540
42,673
42,543
42,428
42,271
OTIV
AMD
MU
TEUM
-4.6
-13.5
-9.1
-4.6
-10.3
267.17
17.59
29.45
27.94
45.75
-0.38
-0.96
-0.10
-0.43
-0.53
52-Week
High
Low
268.60 222.73
32.38 17.46
29.64 21.77
28.33 22.00
47.93 33.94
147.8 25.08 1.62
4402.2 1.86 -18.78
-25.4 10.95 -0.27
10.4 43.98 0.62
1217.4 1.65 10.00
25.49
2.94
15.65
49.89
3.99
14.12
0.93
9.42
20.34
0.50
Selected rates
A consumer rate against its
benchmark over the past year
New car loan
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
4.50%
t
4.00
t
3.00
2.50
J FMAM J J A S O N D
2017
2.37%
518-436-9043
De Witt Savings Bank
Clinton, IL
2.45%
217-935-6342
Tuesday
t
State Bank of Cross Plains
2.46%
Cross Plains, WI
608-798-3961
Broadway National Bank
San Antonio, TX
2.50%
210-283-6500
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
1
3 6
month(s)
3.00
10
2.25
5
1.50
One year ago
0.75
0
–5
0.00
–10
t
3.50
New car loan
TrustCo Bank
Albany, NY
15%
1 2 3 5 710
years
maturity
30
Euro
s
Prime rate
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.34%
s
Yen
WSJ Dollar index
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.25-1.50 1.00-1.25
Prime rate*
4.25
4.50
Libor, 3-month
1.57
1.64
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†
3.30
3.33
Jumbo mortgages, $424,100-plus† 4.27
4.29
Five-year adj mortgage (ARM)† 3.82
3.71
New-car loan, 48-month
3.31
3.34
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
l
1.00
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
1.64
0.36
1.49
4.33
3.50
4.87
3.95
3.74
1.25
1.25
1.39
-0.09
-0.02
-0.22
-0.04
-0.12
0.23
0.31
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1455.694
2.285
2.242
2.285
1.818
3.183 1.444
10-yr Treasury, Ryan ALM 1720.018
DJ Corporate
380.112
Aggregate, Barclays Capital 1937.870
High Yield 100, Merrill Lynch 2856.085
Fixed-Rate MBS, Barclays 1983.370
Muni Master, Merrill
519.842
2.464
3.177
2.740
5.613
2.910
2.223
2.403
3.149
2.720
5.564
2.930
2.176
2.609
3.390
2.790
5.890
3.120
2.393
2.058
2.879
2.380
4.948
2.660
1.736
3.205
6.443
3.926
6.956
3.125
4.830
806.621
5.544
5.572
6.156
5.279
9.985 6.900
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.023
3.770
2.158
4.699
1.829
2.421
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
-26.67
-20.54
-18.78
-15.81
-15.74
9.30
3.16
2.94
7.49
4.00
1.82
0.56
0.93
1.25
0.89
...
215.4
51.2
325.9
104.0
12.33
7.48
17.01
5.78
14.31
-2.23
-1.31
-2.94
-0.97
-2.13
-15.32
-14.90
-14.74
-14.37
-12.96
27.00
9.25
21.95
7.95
18.79
3.11
5.00
4.21
1.11
1.86
217.0
22.4
268.2
-3.5
601.5
2.62
3.56
6.69
3.68
4.89
-0.37
-0.50
-0.90
-0.49
-0.61
-12.37
-12.32
-11.86
-11.75
-11.09
18.31
4.95
8.33
11.64
5.95
2.60
1.85
5.56
2.00
0.40
...
58.9
-14.0
...
640.9
CCCR
SRAX
SIEB
GLUU
MDR
PIXY
DPW
Ranked by change from 65-day average*
Company
Symbol
Videocon d2h ADR
Franklin FTSE Canada ETF
Direxion Dly 7-10Y Tr Br
Guggenheim Cdn Engy Incm
Sprott Gold Miners ETF
VDTH
City Office REIT
Immucell
Xinyuan Real Estate ADR
IRSA Propiedades Com ADR
McDermott International
CIO
Country/currency
FLCA
TYO
ENY
SGDM
ICCC
XIN
IRCP
MDR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
4,388
539
325
188
751
11535
6904
5579
3079
2177
2,737
127
3,479
63
24,329
1647
1262
1073
1055
1035
US$vs,
YTDchg
Tues
in US$ per US$ (%)
52-Week
High
Low
unch.
0.28
1.68
-0.22
0.05
11.74 7.85
25.29 24.63
16.23 13.12
9.32 7.89
23.45 16.89
12.82 -2.51
7.48 -14.90
6.14 3.02
56.11 2.02
6.69 -11.86
13.93 11.43
9.25 5.00
6.73 4.26
64.68 40.52
8.33 5.56
9.24
25.04
14.22
8.09
20.01
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0568 17.6210 11.0
Brazil real
.3040 3.2900 1.1
Canada dollar
.7763 1.2882 –4.2
Chile peso
.001611 620.70 –7.3
Ecuador US dollar
1
1 unch
Mexico peso
.0521 19.2070 –7.4
Uruguay peso
.03481 28.7300 –2.1
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
Asia-Pacific
Australian dollar
.7664 1.3048 –6.0
China yuan
.1514 6.6047 –4.9
Hong Kong dollar
.1279 7.8159 0.8
India rupee
.01561 64.057 –5.7
Indonesia rupiah .0000736 13582 0.4
Japan yen
.008859 112.89 –3.5
Kazakhstan tenge .002981 335.44 0.5
Macau pataca
.1242 8.0500 1.7
Malaysia ringgit
.2450 4.0810 –9.0
New Zealand dollar
.6971 1.4345 –0.7
Pakistan rupee
.00910 109.900 5.3
Philippines peso
.0199 50.261 1.3
Singapore dollar
.7427 1.3465 –7.0
South Korea won .0009211 1085.67 –10.1
Sri Lanka rupee
.0065300 153.14 3.2
Taiwan dollar
.03336 29.979 –7.6
Thailand baht
.03057 32.710 –8.7
Vietnam dong
.00004403 22714 –0.3
Commodities
.04610 21.690 –15.6
.1591 6.2868 –11.1
1.1840 .8446 –11.1
.003783 264.32 –10.2
.009469 105.61 –6.5
.1198 8.3484 –3.4
.2819 3.5471 –15.3
.01702 58.765 –4.1
.1190 8.4039 –7.7
1.0153 .9849 –3.3
.2609 3.8336 8.8
.0359 27.8775 2.9
1.3385 .7471 –7.8
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6536 .3769 –0.1
.0560 17.8530 –1.5
.2856 3.5018 –9.0
3.3099 .3021 –1.1
2.5976 .3850
...
.2720 3.677 1.0
.2667 3.7502 –0.01
.0787 12.7060 –7.2
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.86 –0.05–0.06 –6.54
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
-0.76
-0.53
-0.43
-1.08
-0.48
GROW
SPPI
52-Week
Low
% chg
2.09
2.05
1.86
5.75
2.57
OTIV
ICCC
High
U.S.-dollar foreign-exchange rates in late New York trading
Forex Race
notes and bonds
Bankrate.com avg†:
* 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.
Currencies
s
U.S. consumer rates
NYSE Arca
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
* Volumes of 100,000 shares or more are rounded to the nearest thousand
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Nasdaq
Total volume*2,037,379,919 207,999,298
Adv. volume* 833,101,460 52,789,190
Decl. volume*1,170,541,876 153,757,156
Issues traded
3,078
1,331
Advances
1,035
358
Declines
1,891
949
Unchanged
152
24
New highs
161
131
New lows
50
22
Closing tick
571
111
Closing Arms†
0.77
1.19
Block trades*
7,709
1,288
Latest Session
Close Net chg % chg
DSS
Volume Movers
65,002
64,700
62,318
55,123
47,212
GE
Total volume* 842,347,326 17,446,774
Adv. volume* 292,781,026 7,452,958
Decl. volume* 528,788,621 8,866,092
Issues traded
3,097
338
Advances
1,052
137
Declines
1,909
178
Unchanged
136
23
New highs
160
7
New lows
40
11
Closing tick
123
6
Closing Arms†
0.99
0.66
Block trades*
6,573
171
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
0.04 268.07 267.06
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Interest rate
Net chg
16,409.8 267.27
SPY
MU
Micron Technology
Alibaba Group Holding ADR BABA
13.5
14.8
Last
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
12807.13 12747.26 12747.54 -38.28
Value Line
NYSE NYSE Amer.
Most-active issues in late trading
Central European Media A CETV
NYSE Composite
Americas
Brazil
Canada
Mexico
Chile
23.9
10535.91
6994.76
6513.27
-0.50
MidCap 400
SmallCap 600
World
24792.20 19732.40
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
ly
.
High
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
600.62
0.75
186.02
57.46
2.692
1260.70
0.60
0.30
-0.053
-1.50
0.12
616.58
532.01
0.32 195.14
58.95
0.52
3.93
-1.93
-0.12 1346.00
166.50
42.53
2.56
1128.80
% Chg
7.22
YTD
% chg
5.88
-2.39 -3.37
6.96
10.01
-17.50 -27.71
9.63
11.42
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.
B12 | Wednesday, December 20, 2017
COMMODITIES
WSJ.com/commodities
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
3.1110
3.1295
3.0920
3.1275 0.0055
March'18 3.1445 3.1580
3.1145
3.1515 0.0055
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1261.10 1264.30
1259.50 1260.70 –1.50
Feb'18
1265.40 1268.60
1262.30 1264.20 –1.30
April
1269.50 1272.50
1266.90 1268.80 –1.20
June
1273.10 1277.10
1271.30 1273.10 –1.30
Aug
1277.20 1281.30
1276.40 1277.60 –1.20
Dec
1287.00 1288.80
1285.10 1286.60 –1.10
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1035.45 1035.50 s
1035.45 1031.95
6.55
Jan'18
1015.50 1015.50
t 1015.50 1029.40
6.55
March
1012.90 1019.00
1010.40 1018.60
6.55
June
1004.30 1013.00
1004.30 1012.60
6.60
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
913.20
0.90
Jan'18
911.00
920.60
904.90
914.10
0.90
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
16.160
16.160
16.080
16.066 –0.054
March'18 16.180 16.260
16.095
16.153 –0.052
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Jan
57.30
57.64
57.16
57.46
0.30
Feb
57.34
57.80
57.20
57.56
0.34
March
57.33
57.82
57.21
57.58
0.35
April
57.30
57.78
57.20
57.56
0.36
June
57.03
57.54
57.00
57.35
0.37
Dec
55.43
55.95
55.40
55.81
0.40
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9258
1.9471
1.9233
1.9399 .0147
Feb
1.9270
1.9479
1.9239
1.9410 .0147
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.6747
1.7020
1.6718
1.6966 .0241
Feb
1.6887
1.7159
1.6867
1.7109 .0229
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.734
2.769
2.688
2.692 –.053
Feb
2.747
2.775
2.693
2.697 –.058
March
2.712
2.738
2.662
2.665 –.055
April
2.618
2.648
2.593
2.601 –.033
May
2.634
2.654
2.604
2.614 –.026
Oct
2.722
2.745
2.700
2.715 –.020
Open
interest
1,539
138,418
1,893
334,298
32,667
34,592
11,631
25,823
32
1
33,640
1,303
3
44,508
667
167,574
29,831
504,387
356,307
170,506
261,140
252,352
73,257
113,292
67,113
116,150
128,647
337,195
274,227
156,656
126,175
82,399
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
t 346.50
t 363.25
Oats (CBT)-5,000 bu.; cents per bu.
March
252.00
253.50
243.75
May
258.25
258.25
252.00
Soybeans (CBT)-5,000 bu.; cents per bu.
Jan
962.25
964.00
955.00
March
973.25
975.00
965.75
346.75
363.25
348.75
365.50
Settle
Open
interest
Chg
Soybean Meal (CBT)-100 tons; $ per ton.
Metal & Petroleum Futures
March
July
Contract
High hilo
Low
Open
347.50
364.25
.50 851,960
.50 230,283
246.50
252.75
–5.00
–5.75
956.00
966.75
–5.50 164,296
–5.75 265,253
Jan
March
318.50
322.50
319.30
323.20
315.10
319.00
315.20
319.10
–3.30 62,688
–3.40 164,799
Jan
March
33.14
33.29
33.31
33.46
33.05
33.20
33.22
33.39
.20 71,045
.21 185,798
Jan
March
1174.50
1203.00
1194.00
1220.00
1165.50
1195.00
1171.50
1201.00
March
May
420.50
433.50
424.00
437.25
419.00
432.50
419.50
432.75
–1.00 312,607
–.75 87,944
March
May
419.25
432.50
423.75
436.50
418.50
431.25
420.00
433.00
.75 202,014
1.25 51,670
March
May
618.50
627.00
624.25
631.50
617.00
624.75
618.25
626.25
Jan
March
147.750
145.450
148.250
146.000
Dec
Feb'18
120.150
120.875
120.700
121.450
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.
41,586
12,739
144.700
142.950
145.200 –2.450
143.300 –1.950
14,897
21,886
119.450
119.800
120.000
120.450
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
67.575
72.325
67.900
72.675
4,223
5,634
–1.00
–1.00
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Feb
April
.50
1.00
66.775
71.575
66.900
71.675
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
.025
5,492
–.150 126,233
–.500
–.575
91,181
58,806
437.20
441.90
429.40
431.20 –3.70
3,007
Jan
March
429.90
435.10
423.80
426.10 –1.30
2,758
Milk (CME)-200,000 lbs., cents per lb.
15.49
15.51
15.44
15.44
–.06
3,897
Dec
Feb'18
13.84
13.91
t
13.54
13.64
–.20
3,651
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,915
1,928
1,894
1,912
–10 139,624
March
May
1,911
1,918
1,889
1,905
–10 49,290
Coffee (ICE-US)-37,500 lbs.; cents per lb.
121.90
122.45
121.00
121.75
–.15 128,676
March
May
124.20
124.65
123.25
124.00
–.15 45,962
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
13.80
14.43
13.78
14.41
.65 419,989
March
May
13.68
14.25
13.66
14.23
.59 165,736
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
26.98
27.00
26.98
26.93
…
3,358
March
May
27.00
27.20
26.87
27.00
–.17
2,188
Cotton (ICE-US)-50,000 lbs.; cents per lb.
75.30
75.92
74.93
75.03
–.17 170,018
March
May
75.75
76.12
75.29
75.33
–.31 49,773
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
141.25
143.30
139.95
140.80
–.25
2,280
Jan
March
140.90
142.50
139.40
140.05
–.90
5,657
4,861
1,345
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
153-000
151-110
152-170 –1-24.0 13,837
151-160 –1-22.0 769,301
Tuesday
Tuesday
16.1550
12123
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Metals
Other metals
LBMA Platinum Price PM
*902.0
Platinum,Engelhard industrial
917.0
Platinum,Engelhard fabricated
1017.0
Palladium,Engelhard industrial
1021.0
Palladium,Engelhard fabricated
1121.0
Aluminum, LME, $ per metric ton
*2047.5
Copper,Comex spot
3.1275
Iron Ore, 62% Fe CFR China-s
73.5
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
642
Fibers and Textiles
Gold, per troy oz
1265.80
1360.74
1260.35
1398.99
*1258.65
*1260.60
1311.86
1324.47
1324.47
1528.87
1239.42
1324.47
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.1500
19.3800
16.0850
20.1060
£12.0800
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6200
0.7428
*86.65
65.000
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
4.85
113
3.1950
98.8
482.4
233
95
228
2.7400
384.00
25.00
7.9900
Tuesday
312.70
9.2000
7.4325
4.2400
4.0300
5.2050
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
185.14
166.78
0.8668
2.2100
148.00
145.00
64.75
2112
1.2072
1.4014
1.6750
15.15
n.a.
62.01
n.a.
0.8298
n.a.
167.75
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
34.7000
0.2300
n.a.
0.3247
0.2650
0.3000
n-
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.
U.S. consumer price index
0.002
–0.06
246.669
253.492
All items
Core
2.2
1.7
International rates
Latest
Week
ago
Treasury bill auction
1.245 1.240 1.300 0.400
1.355 1.320 1.355 0.505
1.480 1.460 1.480 0.590
4 weeks
13 weeks
26 weeks
Secondary market
Fannie Mae
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
3.479 3.488 3.865 3.253
3.502 3.511 3.899 3.281
30 days
60 days
4.50 4.25 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
Other short-term rates
Week
Latest ago
1.06
1.44
U.S.
1.45
0.48
U.S. government rates
Euro Libor
One month
Three month
Six month
One year
-0.407
-0.385
-0.325
-0.260
-0.411
-0.386
-0.322
-0.257
-0.376
-0.331
-0.227
-0.086
-0.417
-0.387
-0.325
-0.261
One month
Three month
Six month
One year
-0.370
-0.329
-0.274
-0.194
Latest
-0.369
-0.327
-0.271
-0.191
Value
Traded
-0.366
-0.313
-0.216
-0.081
-0.375
-0.332
-0.276
-0.194
52-Week
High
Low
DTCC GCF Repo Index
3.25
3.00
3.25
2.50
1.465
1.470
Treasury
MBS
1.55
1.47
1.58
0.72
Libor
1.51113 1.47195 1.51113 0.74900
1.64203 1.57352 1.64203 0.99622
39.100 1.498 0.448
91.650 1.541 0.483
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
—52-WEEK—
High Low
1.78830 1.74769 1.78830 1.31600
2.06888 2.02825 2.06888 1.68456
Six month
One year
52-Week
high
low
Call money
90 days
Overnight repurchase
Week
Latest ago
Euro interbank offered rate (Euribor)
30-year mortgage yields
Policy Rates
Euro zone
Switzerland
Britain
Australia
—52-WEEK—
High Low
no
Week
Latest ago
Chg From (%)
Oct. '17 Nov. '16
DTCC GCF Repo Index Futures
Treasury Dec
Treasury Jan
Treasury Feb
98.660 unch. 3909 1.340
98.560 -0.005 1758 1.440
98.550 -0.005 813 1.450
Discount
1.75
2.00
1.25
1.1700
1.3125
1.0500
1.1600
1.1700
1.4200
1.6125
1.3000
1.4100
1.4200
0.5900
0.8125
0.4000
0.4000
0.5800
2.00
Federal funds
Effective rate
High
Low
Bid
Offer
1.4200
1.5625
1.3000
1.4100
1.4200
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; Discount rate is effective December 14, 2017. DTCC GCF Repo Index is
Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value
traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET.
Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
Dividend Changes
Dividend announcements from December 19.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
Boston Properties
Hugoton Royalty Trust Un
Pfizer
Roper Technologies
San Juan Basin Royalty Tr
Wabash National
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Initial
BXP
HGT
PFE
ROP
SJT
WNC
2.5
17.0
3.7
0.6
11.3
1.4
.80 /.75
.0184 /.00695
.34 /.32
.4125 /.35
.0733 /.07208
.075 /.06
Q
M
Q
Q
M
Q
Jan30 /Dec29
Jan16 /Dec29
Mar01 /Feb02
Jan23 /Jan09
Jan16 /Dec29
Jan25 /Jan04
EPR Prop 5.75% Pfd. G
.18368
EPRpG
Jan15 /Dec29
Foreign
Enerplus
ERF
1.1
.0078
M
Jan15 /Dec29
Special
PC Connection
CNXN
.34
Jan12 /Dec29
Reduced
Cross Timbers Royalty Tr
Permian Basin Royalty Tr
CRT
PBT
6.7 .0785 /.09291 M
6.9 .0509 /.05102 M
March
April
June
Sept
Dec
June'19
.7663
.7676
.7673
.7672
.7587
.7550
Jan
March
.05186
.05163
.05226
.05175
.05180
.05121
.05188 –.00031
51
.05130 –.00031 176,123
Jan
March
1.1825
1.1866
1.1882
1.1926
1.1818
1.1859
1.1878
1.1922
Mexican Peso (CME)-MXN 500,000; $ per MXN
Euro (CME)-€125,000; $ per €
Jan16 /Dec29
Jan16 /Dec29
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
–.0002 105,112
–.0002
19
–.0001
309
–.0001
64
–.0001
4
…
2
.0055
7,345
.0054 445,156
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
March
June
2696.00
...
2697.80 s
2698.00 s
2682.80
2687.00
2684.10 –10.30
2685.80 –10.20
Currency Futures
March
June
2695.00
2696.25
2698.00 s
2699.75 s
2682.50
2684.50
2684.00 –10.50 2,967,731
2685.75 –10.25 17,181
Japanese Yen (CME)-¥12,500,000; $ per 100¥
March
1909.00
1913.30
1897.80
1901.30
March
June
6535.0
6554.8
6479.8
6498.8
6500.8
6519.5
March
June
1551.40
1542.00
1556.90
1542.00
1536.50
1542.00
1538.70 –12.70
1540.20 –12.70
March
1491.60
1491.60
1486.70
1487.00
–5.20
65
March
June
...
92.96
...
92.96
...
92.75
93.03
92.69
–.21
–.23
39,087
1,010
.8903
.8937
.8911
.8938
.8866
.8891
.8874 –.0033
2,199
.8902 –.0033 213,346
Dec
March'18
.7773
.7789
.7781
.7797
.7748
.7753
.7759 –.0011 39,773
.7779 –.0006 108,828
Jan
March
1.3399
1.3440
1.3425
1.3456
1.3362
1.3384
1.3409 –.0005
2,302
1.3435 –.0006 182,307
March
June
1.0229
1.0299
1.0248
1.0317
1.0201
1.0277
1.0225 –.0003
1.0299 –.0004
78,598
81
.7661
.7663
.7683
.7681
.7647
.7647
.7665 –.0003
.7665 –.0002
1,517
618
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Jan
Feb
24775
24792
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
–48 144,137
–33
127
40,004
603
Mini S&P Midcap 400 (CME)-$100 x index
Jan
March
Mini Nasdaq 100 (CME)-$20 x index
6545.8 s
6562.8 s
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
–7.80
92,598
–34.5 271,562
–33.5
578
22,544
19
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Index
3.1
1937.87
Yield (%)
Latest Low High
Total
return
close
2.740 2.380 2.790
1983.37
2.2
Mortgage-Backed
1950.35
1.6
Ginnie Mae (GNMA) 2.860 2.630 3.090
5.7
3.300 3.030 3.500
1163.14
2.3
Fannie mae (FNMA) 2.920 2.670 3.120
2.910 2.530 2.990
1791.44
2.4
U.S. Aggregate
U.S. Corporate
3.6
Freddie Mac (FHLMC) 2.930 2.680 3.130
Intermediate
3883.77
10.5 Long term
4.110 3.990 4.680
519.84
566.94
4.1 Double-A-rated
2.750 2.470 2.870
363.36
3.600 3.340 3.840
409.15
6.4
718.62
YTD total
return (%)
Triple-B-rated
397.25
High Yield Bonds Merrill Lynch
7.2
416.74
8.8
418.49
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
U.S. Corporate Indexes Bloomberg Barclays
High Yield Constrained 5.816 5.373 6.257
2.910 2.660 3.120
4.2 Muni Master
2.223 1.736 2.393
4.6 7-12 year
2.256 1.744 2.482
6.0
12-22 year
2.546 2.213 2.887
7.0
22-plus year
2.898 2.716 3.463
Global Government J.P. Morgan†
Triple-C-rated
10.703 9.584 11.553
544.23
1.4
Global Government 1.440 1.300 1.560
2856.09
6.4
High Yield 100
5.613 4.948 5.890
758.34
0.7
Canada
2.010 1.570 2.190
378.28
7.4
Global High Yield Constrained 5.273 4.934 5.907
372.87
1.1
EMU§
1.052 0.933 1.363
306.00
6.6
Europe High Yield Constrained 2.455 1.897 3.321
715.64
1.3
France
0.780 0.690 1.210
Germany
0.450 0.210 0.620
Japan
0.390 0.340 0.460
Netherlands
0.560 0.360 0.760
U.K.
1.530 1.340 1.790
509.63
1635.19
1.9
U.S Agency
2.210 1.690 2.210
288.88
1461.37
1.0
10-20 years
2.070 1.490 2.070
563.21
3362.22
7.6
20-plus years
2.990 2.730 3.430
928.02
2.980 2.610 3.060
806.62
4.8 Yankee
2457.71
-1.0
0.2
-0.5
1.6
9.1
Emerging Markets ** 5.544 5.279 6.156
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.750
2.250
0.500
0.050
2.050
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.828
2.393
1.721
2.344
1.228
2.542
1.936 s
2.586 s
l
1.912
1.787
1.862
8.3
8.4
l
2.541
2.584
2.870
12.4
14.8
32.8
France 2 -0.523 s
10 0.703 s
l
-0.542
-0.595
-237.0
-191.8
l
0.626
0.713
-0.690 -237.6
0.710
-175.9
-176.7
-183.2
Germany 2 -0.690 s
10 0.380 s
l
-0.708
-0.711
-253.5
-202.7
l
0.311
0.362
-0.799 -254.3
0.247 -208.2
-208.2
-229.5
Italy 2 -0.222 s
10 1.913 s
l
-0.287
-0.266
-0.124
-207.4
-211.5
-135.2
l
1.803
1.835
1.833
-54.9
-59.0
-71.0
Japan 2 -0.149 s
10 0.042 s
l
-0.152
-0.193
-0.183
-200.2
-197.9
-141.1
l
0.040
0.037
-235.2
-246.3
Spain 2 -0.376 s
10 1.470 s
l
-0.396
-0.362
-0.259
-222.9
-222.3
-148.7
l
1.443
1.551
1.378
-99.2
-95.0
-116.5
0.465 s
1.211 s
l
0.446
0.483
0.091
-138.7
-138.2
-113.7
l
1.149
1.298
1.256
-125.1
-124.3
-128.6
10
0.000
Year ago
l
Australia 2
0.750
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.853 s
10 2.462 s
2.750
2.750
December 19, 2017
.7663
.7662
.7662
.7662
.7661
.7657
Open
interest
24730
24746
0.100
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
.7644
.7646
.7647
.7672
.7566
.7550
Chg
24893 s
24876 s
0.100
Inflation
.7682
.7676
.7673
.7672
.7599 s
.7550 s t
Settle
24825
24839
U.S Agency Bloomberg Barclays
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 12/18
Source: WSJ Market Data Group
Nov. index
level
Contract
High hilo
Low
Open
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Tuesday, December 19, 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.
0.9304
0.9798
2.740
2.740
3.140
2.370
2.590
2.310
2.620
59.850
12.100
Open
interest
March
June
2613.64
Cash Prices | WSJ.com/commodities
Energy
Chg
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-135 124-145
123-275 123-280 –18.5 26,123
March'18 124-060 124-080
123-200 123-220 –17.5 3,199,995
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-160 116-160
116-070 116-092
–7.5 26,377
March'18 116-090 116-092
116-000 116-017
–7.7 2,984,240
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-087 107-087
107-082 107-087
–1.2 14,891
March'18 107-035 107-037
107-012 107-022
–1.7 1,750,459
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.703
98.705
98.703
98.703
… 106,560
Jan'18
98.595
98.595
t 98.590
98.595 –.005 277,388
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
March
98.391
98.391
t 97.656
97.734 –.594 24,346
1 Month Libor (CME)-$3,000,000; pts of 100%
Jan
98.4750 98.4750
t 98.4750 98.4775 –.0050
5,048
Feb
98.4725 98.4725
t 98.4700 98.4700 –.0100
2,379
Eurodollar (CME)-$1,000,000; pts of 100%
Jan
98.3375 98.3450
t 98.3250 98.3250 –.0100 170,751
March
98.2200 98.2300
98.2100 98.2150 –.0100 1,501,038
June
98.0750 98.0800
t 98.0500 98.0600 –.0200 1,294,245
Dec
97.8900 97.8900
97.8500 97.8650 –.0250 1,558,486
2782.37
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Settle
Broad Market Bloomberg Barclays
Interest Rate Futures
154-100 154-100
Dec
March'18 153-060 153-150
Contract
High hilo
Low
Open
ly
.
Futures Contracts
1.750
U.K. 2
4.250
10
0.079 -242.0
63.3
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Goldman Sachs
MPLX
Apple
Branch Banking And Trust
GS
Marathon Oil
American Express Credit
Unilever Capital
Viacom
MRO
MPLX
AAPL
BBT
AXP
UNANA
VIA
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
5.375 March 15, ’20
5.200 March 1, ’47
2.000
May 6, ’20
2.100 Jan. 15, ’20
38
180
11
20
–13
–12
–11
–10
54
195
n.a.
n.a.
256.48
36.26
174.54
…
–1.36
–0.87
–1.07
…
2.800
Nov. 1, ’22
2.200 March 3, ’20
2.900
May 5, ’27
5.875 Feb. 28, ’57
78
30
57
382
–10
–9
–9
–9
90
35
62
394
16.02
…
...
34.80
3.82
…
...
0.14
106.51
...
…
…
–0.42
...
…
…
…
85.83
51.81
411.87
…
–0.64
0.14
0.91
…And spreads that widened the most
JPMorgan Chase
Anheuser–Busch Inbev Finance
Teva Pharmaceutical Finance Netherlands Iii
Perrigo Finance Unlimited
JPM
Allergan Funding Scs
Microsoft
Charles Schwab
Sherwin–Williams
AGN
ABIBB
TEVA
PRGO
MSFT
SCHW
SHW
7.900 April 30, ’49
3.300
Feb. 1, ’23
2.200 July 21, ’21
4.375 March 15, ’26
68
58
n.a.
159
10
8
66
57
n.a.
144
3.800 March 15, ’25
2.400
Feb. 6, ’22
3.200 March 2, ’27
3.450
June 1, ’27
112
21
67
84
6
6
6
6
119
23
n.a.
85
26
18
High-yield issues with the biggest price increases…
Issuer
Symbol
Fresh Market
Kindred Healthcare
PetSmart
Tenet Healthcare
TFM
Valeant Pharmaceuticals International
Nustar Logistics
Inmarsat Finance
Denbury Resources
VRXCN
KND
PETM
THC
NSUS
ISATLN
DNR
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
9.750
8.000
5.875
6.750
May 1, ’23
Jan. 15, ’20
June 1, ’25
June 15, ’23
59.250
108.000
78.500
95.375
6.125
5.625
4.875
5.500
April 15, ’25
April 28, ’27
May 15, ’22
May 1, ’22
91.030
101.750
99.750
68.000
4.13
2.25
1.63
1.41
1.28
1.25
1.20
1.00
Last week
Stock Performance
Close ($)
% chg
n.a.
100.700
78.625
94.323
...
9.10
...
15.03
...
–4.21
...
1.97
90.350
100.500
99.625
70.000
...
...
...
1.67
...
...
...
...
…And with the biggest price decreases
Frontier Communications
Mattel
Carlson Travel
J. C. Penney
FTR
McClatchy
Charter Communications Operating
Calpine
AmeriGas Partners
MNI
MAT
CARLTV
JCP
CHTR
CPN
APU
8.500
5.450
6.750
5.875
April 15, ’20
Nov. 1, ’41
Dec. 15, ’23
July 1, ’23
85.250
83.000
91.500
93.750
–2.25
–1.56
–1.25
–1.25
90.875
84.211
n.a.
95.625
7.44
15.10
...
3.04
–9.27
1.75
...
–4.70
6.875 March 15, ’29
5.375
May 1, ’47
5.250
June 1, ’26
5.625 May 20, ’24
94.375
102.141
97.750
103.406
–1.25
–1.23
–1.23
–1.16
94.750
102.217
99.750
104.128
9.19
…
15.09
44.83
–1.71
…
–0.07
–0.38
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B13
NEW HIGHS AND LOWS
BUSINESS NEWS
WSJ.com/newhighs
Tuesday, December 19, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Highs
AAR
AIR
ABB
ABB
AGNCInvPfdB
AGNCB
AbbottLabs
ABT
Acushnet
GOLF
AdtalemGlbEduc ATGE
Aegon
AEG
AeroVironment AVAV
AffiliatedMgrs
AMG
AgreeRealty
ADC
AlexandriaRlEst ARE
Ameriprise
AMP
AmpioPharm
AMPE
AmplifySnack
BETR
AnworthMtgPfdA ANHpC
ArchCoal
ARCH
AssuredGuarNts AGOpF
AtHomeGroup
HOME
AveryDennison AVY
AvisBudget
CAR
BBVABancoFr
BFR
BcoSantChile
BSAC
BankofAmWtB BAC.WS.B
BankofAmWtA BAC.WS.A
BankofAmerica BAC
BerkHathwy A BRK.A
BerkHathwy B BRK.B
BestBuy
BBY
BlackRock
BLK
BobEvansFarms BOBE
Boeing
BA
BoiseCascade
BCC
BoulevardAcqnIi BLVD
BoydGaming
BYD
BrightHorizons BFAM
Brown-Forman B BF.B
Brown-Forman A BF.A
BurlingtonStrs
BURL
CB FinSvcs
CBFV
CDK Global
CDK
CONSOL Energy CEIX
CSP
CSPI
CVR Energy
CVI
CadenceBancorp CADE
CalavoGrowers CVGW
CapSouthwstNts CSWCL
Cars.com
CARS
Caterpillar
CAT
Celanese A
CE
Cerecor
CERC
ChathamLodging CLDT
43.44
26.63
26.87
56.95
20.80
46.00
6.35
58.99
203.35
53.65
134.37
171.95
3.02
12.02
25.46
88.74
25.54
31.24
117.63
46.32
25.09
32.29
2.22
17.60
29.64
301000
200.50
67.28
520.74
78.99
297.58
40.70
10.15
35.26
94.78
68.23
67.76
118.19
31.50
72.25
32.48
11.99
36.04
26.95
82.55
25.50
30.30
151.09
109.70
2.83
23.91
-1.0
0.6
-0.9
0.7
0.7
-0.9
0.5
-1.1
0.4
-0.3
-1.8
0.8
-4.4
...
0.1
0.1
0.2
0.2
0.8
-2.5
3.9
0.3
...
0.1
-0.1
-0.8
-0.7
-1.8
-0.6
0.3
0.4
-0.9
1.3
0.9
0.1
0.2
0.3
1.8
0.7
...
8.2
6.3
-0.2
0.3
2.6
0.8
4.8
0.8
-0.5
17.5
-2.0
52-Wk %
Sym Hi/Lo Chg Stock
Chegg
CHGG
ChemungFinl
CHMG
Children'sPlace PLCE
ChinaEastrnAir CEA
ChinaCache
CCIH
Cintas
CTAS
CitizensFin
CFG
Clorox
CLX
Codexis
CDXS
ColonyBankcorp CBAN
ColumbiaSportswr COLM
Comerica
CMA
ComericaWt
CMA.WS
CommunityHlthcr CHCT
CommunityWestBcshs CWBC
ConcertPharm
CNCE
Crane
CR
CreditAcceptance CACC
Crocs
CROX
CrownHoldings CCK
CubeSmart
CUBE
DDR PfdK
DDRpK
Darden
DRI
DaVita
DVA
DeckersOutdoor DECK
Deere
DE
DollarTree
DLTR
Domtar
UFS
Dover
DOV
Dunkin'
DNKN
EMCOR
EME
EatonVance
EV
Ebix
EBIX
Ecopetrol
EC
eGain
EGAN
8x8
EGHT
EmpireResorts NYNY
EmpresaDisCom EDN
EnantaPharma ENTA
EnPro
NPO
Entravision
EVC
EnviroStar
EVI
ExlService
EXLS
ExpressScripts ESRX
FSB Bancorp
FSBC
FederatedInvest FII
FirstAmerFin
FAF
FiveBelow
FIVE
FlirSystems
FLIR
Forestar
FOR
Fortinet
FTNT
FortressTransport FTAI
Freshpet
FRPT
GardnerDenver GDI
16.60 -0.2
56.83 -0.3
141.95 -2.7
32.99 3.5
3.16 195.5
161.00 -0.6
42.84 0.1
149.33
...
8.25 3.2
14.60 2.5
71.82 -0.2
87.48 0.3
58.10 0.2
30.64 2.7
10.95 0.9
30.71 5.4
89.82 -0.3
338.12 0.6
13.16 0.2
62.27 -2.2
29.79 -2.5
25.77 0.7
96.74 6.8
72.17 1.0
80.75 2.8
154.98 0.3
110.86 0.1
49.99 0.3
100.14 0.3
64.44 2.5
82.94 -0.5
57.71 0.8
80.85 -0.4
13.29 0.8
5.00 6.5
15.00 -3.0
28.00 11.1
52.00 6.3
57.78 -0.8
93.24 0.9
7.90 2.6
36.15 -2.1
63.35 -0.6
74.67 0.4
17.73 1.2
36.54 0.2
57.23 0.5
68.89 -2.1
48.43 -0.7
23.00 -1.3
45.64 1.9
19.10 0.1
19.85 0.3
33.62 -0.3
52-Wk %
Sym Hi/Lo Chg
GasLog
GenomicHealth
Genpact
GIIIApparel
GrayTelevision A
Greenbrier
GpoFinGalicia
H&E Equipment
HDFC Bank
HMG Court
HSN
Heico A
Heico
Hill-Rom
HomeDepot
HondaMotor
DR Horton
HostHotels
Hubbell
HudsonGlobal
Huntsman
IONGeophysical
IndustreaAcqn
InterContinentl
InterXion
Intricon
Investar
J&JSnackFoods
JanusHenderson
KKR
KLX
KMG Chem
KeyCorp
LGI Homes
LPL Financial
LabCpAm
LasVegasSands
Leidos
LibertyQVC B
LibertyQVC A
Lowe's
lululemon
LunaInnov
MBFinPfdC
MGPIngredients
MVC CapNts22
MagellanHealth
MagnaIntl
ManTechIntl
Medifast
MelcoResorts
MercadoLibre
MercurySystems
MeridianBancorp
GLOG
GHDX
G
GIII
GTN.A
GBX
GGAL
HEES
HDB
HMG
HSNI
HEI.A
HEI
HRC
HD
HMC
DHI
HST
HUBB
HSON
HUN
IO
INDUU
IHG
INXN
IIN
ISTR
JJSF
JHG
KKR
KLXI
KMG
KEY
LGIH
LPLA
LH
LVS
LDOS
QVCB
QVCA
LOW
LULU
LUNA
MBFIO
MGPI
MVCD
MGLN
MGA
MANT
MED
MLCO
MELI
MRCY
EBSB
21.55
37.50
32.80
36.42
14.18
52.95
67.20
40.12
100.48
14.45
43.90
82.30
100.00
85.64
186.72
34.45
51.79
20.65
132.46
1.97
33.15
17.45
10.46
62.14
59.22
20.20
24.60
156.32
38.32
20.97
62.82
67.76
20.30
74.94
56.81
164.86
72.20
65.27
26.00
26.67
89.33
77.22
2.53
26.20
78.43
25.68
99.80
57.51
53.29
74.78
28.74
334.99
55.00
20.90
0.2
-2.0
0.1
0.7
1.5
0.1
1.5
-1.4
1.1
10.5
3.1
1.7
1.3
1.3
0.7
0.7
-1.3
-1.5
0.9
1.0
0.5
23.0
-0.1
-0.3
-1.2
5.0
-0.6
1.2
1.9
0.7
-0.4
0.8
-0.2
0.1
-1.0
1.5
1.2
-0.7
2.3
3.2
1.6
...
3.8
0.3
4.1
...
0.8
0.4
-1.7
-1.2
2.8
1.0
-3.4
0.2
Mutual Funds | WSJ.com/fundresearch
Data provided by
US TgdVal
-2.79 33.2 USLgVa
-0.04
-0.04
3.8
4.2
-0.96 12.9
... 16.8
-0.99 13.1
... 4.6
-0.03
3.8
-0.02
+0.03
+0.05
-0.02
-0.03
+0.01
...
-0.06
-0.06
-0.21
-0.25
2.0
30.1
33.1
26.1
24.3
27.5
25.1
20.9
18.8
11.6
6.9
Balanced
Income
Intl Stk
Stock
106.56 -5.91
13.73 -0.14
45.77 -0.85
202.77 -8.99
DoubleLine Funds
NA
...
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 30.16 -0.21
Federated Instl
6.14 -0.04
StraValDivIS
Fidelity
93.68 -0.30
500IdxInst
500IdxInstPrem 93.68 -0.30
500IdxPrem 93.68 -0.30
ExtMktIdxPrem r 61.82 -0.36
IntlIdxPrem r 42.85 -0.06
SAIUSLgCpIndxFd 14.43 -0.05
76.47 -0.29
TMktIdxF r
TMktIdxPrem 76.47 -0.28
USBdIdxInstPrem 11.56 -0.03
Fidelity Advisor I
32.05 -0.11
NwInsghtI
Fidelity Freedom
16.97 -0.05
FF2020
14.72 -0.03
FF2025
18.50 -0.05
FF2030
Freedom2020 K 16.98 -0.04
Freedom2025 K 14.72 -0.03
Freedom2030 K 18.51 -0.05
Freedom2035 K 15.58 -0.04
Freedom2040 K 10.95 -0.03
Fidelity Invest
23.71 -0.09
Balanc
88.38 -0.39
BluCh
123.14 -0.59
Contra
123.06 -0.60
ContraK
10.31 -0.01
CpInc r
39.71
...
DivIntl
188.25 -0.85
GroCo
188.23 -0.84
GrowCoK
7.90 -0.03
InvGB
11.24 -0.03
InvGrBd
12.1
4.1
22.5
17.8
NA
35.8
14.5
22.1
22.1
22.1
17.7
24.4
22.0
21.3
21.3
3.1
28.4
15.0
16.3
19.1
NS
NS
NS
NS
NS
16.4
37.0
33.0
33.1
11.3
25.7
37.6
37.8
3.5
3.9
53.89 -0.03
53.84 -0.02
104.79 -0.25
MagIn
111.26 -0.66
OTC
23.40 -0.08
Puritn
SrsEmrgMkt 20.93 +0.02
SrsGroCoRetail 16.73 -0.07
15.99 -0.03
SrsIntlGrw
10.63 -0.02
SrsIntlVal
10.63 -0.03
TotalBond
First Eagle Funds
58.58 -0.10
GlbA
FPA Funds
NA
...
FPACres
FrankTemp/Frank Adv
2.35 -0.01
IncomeAdv
FrankTemp/Franklin A
7.44 -0.03
CA TF A p
2.37 -0.01
IncomeA p
61.03
...
RisDv A p
FrankTemp/Franklin C
2.40 -0.01
Income C t
FrankTemp/Temp A
12.06
...
GlBond A p
27.11 +0.01
Growth A p
FrankTemp/Temp Adv
...
GlBondAdv p 12.01
Harbor Funds
69.75 -0.45
CapApInst
67.21 +0.09
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.92 -0.01
EqIncA
John Hancock Class 1
16.21 -0.03
LSBalncd
17.47 -0.04
LSGwth
John Hancock Instl
23.20 -0.07
DispValMCI
JPMorgan Funds
40.50 -0.15
MdCpVal L
JPMorgan R Class
11.58 -0.03
CoreBond
Lazard Instl
19.3
19.4
26.8
40.4
18.6
37.3
38.3
28.9
19.8
3.8
12.6
NA
8.2
5.4
8.0
20.0
7.8
3.8
17.2
4.0
37.2
22.3
NA
10.5
14.8
18.8
15.1
13.3
n-
22.0
17.5
15.2
2.9
13.8
24.1
29.7
23.1
25.9
6.5
19.6
12.8
28.6
35.0
31.2
25.6
4.9
19.9
Net YTD
NAV Chg % Ret
24.73 -0.13 8.9 LowP r
38.90 -0.07 18.3 LowPriStkK r
Dodge & Cox
19.93 +0.02
Loomis Sayles Fds
13.72 -0.02
LSBondI
Lord Abbett A
...
ShtDurIncmA p 4.25
Lord Abbett F
4.25
...
ShtDurIncm
Metropolitan West
10.63 -0.03
TotRetBd
10.63 -0.03
TotRetBdI
10.00 -0.03
TRBdPlan
MFS Funds Class I
42.17 -0.10
ValueI
MFS Funds Instl
25.27 -0.04
IntlEq
Mutual Series
32.93 -0.03
GlbDiscA
Oakmark Funds Invest
32.13 -0.03
EqtyInc r
84.19 -0.18
Oakmark
28.23
...
OakmrkInt
Old Westbury Fds
14.39 -0.01
LrgCpStr
Oppenheimer Y
41.89 -0.12
DevMktY
43.29 -0.02
IntGrowY
Parnassus Fds
43.28 -0.07
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
10.22 -0.03
TotRt
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
97.09 -0.40
BlChip
28.36 -0.04
CapApp
33.36 -0.13
EqInc
71.89 -0.23
EqIndex
63.17 -0.29
Growth
70.15 -0.07
HelSci
37.24 -3.59
InstlCapG
18.49
...
IntlStk
14.98 -0.02
IntlValEq
87.37 -0.05
MCapGro
30.08 -0.07
MCapVal
52.49 -0.11
N Horiz
9.47 -0.02
N Inc
11.24 -0.02
OverS SF r
23.57 -0.05
R2020
18.20 -0.05
R2025
26.86 -0.07
R2030
19.66 -0.05
R2035
3.5
Net
Sym Close Chg
NiSource
NI
25.30
NobleEnergy NBL 27.23
Nokia
NOK
4.67
NomuraHoldings NMR 5.92
Nordson
NDSN 142.39
Nordstrom
JWN 46.51
s NorfolkSouthern NSC 143.72
NorthernTrust NTRS 98.02
NorthropGrum NOC 307.12
NorwegCruise NCLH 55.59
Novartis
NVS 84.73
NovoNordisk NVO 52.79
Nucor
NUE 62.43
Nutanix
NTNX 36.04
NVIDIA
NVDA 196.11
O P Q
t
s
s
s
OGE Energy OGE 33.34
ONEOK
OKE 51.86
OReillyAuto ORLY 243.03
OccidentalPetrol OXY 70.90
OldDomFreight ODFL 129.78
Omnicom
OMC 73.87
ON Semi
ON
20.80
OpenText
OTEX 32.71
Oracle
ORCL 47.82
Orange
ORAN 17.41
OrbitalATK OA 132.30
Orix
IX
85.08
Oshkosh
OSK 89.71
OwensCorning OC
88.76
PG&E
PCG 52.05
PLDT
PHI 29.29
PNC Fin
PNC 145.10
POSCO
PKX 75.82
PPG Ind
PPG 116.31
PPL
PPL 32.42
PTC
PTC 59.85
PVH
PVH 136.60
Paccar
PCAR 70.90
PackagingCpAm PKG 118.84
PacWestBancorp PACW 49.03
PaloAltoNtwks PANW 148.94
ParkHotels
PK
28.90
ParkerHannifin PH 198.07
ParsleyEnergy PE
26.84
Paychex
PAYX 69.26
PayPal
PYPL 74.50
Pearson
PSO
9.58
PembinaPipeline PBA 34.79
Pentair
PNR 69.19
People'sUtdFin PBCT 19.04
PepsiCo
PEP 118.61
PerkinElmer PKI
73.84
Perrigo
PRGO 85.89
PetroChina PTR 68.94
PetroleoBrasil PBR
9.62
PetroleoBrasilA PBR.A 9.21
-0.68
0.94
-0.02
-0.03
0.22
-0.12
0.09
-0.57
-1.28
0.22
-0.34
-0.13
0.42
-0.53
-1.79
Stock
no
Stock
Net
Sym Close Chg
Pfizer
PFE 36.94
PhilipMorris PM 108.12
Phillips66
PSX 99.14
PilgrimPride PPC 32.25
PinnacleFoods PF
57.40
PinnacleWest PNW 86.59
PioneerNatRscs PXD 160.20
PlainsAllAmPipe PAA 20.58
PlainsGP
PAGP 21.52
PolarisIndustries PII 123.65
Potash
POT 19.63
Praxair
PX 154.17
Priceline
PCLN 1780.62
PrincipalFin PFG 70.86
Procter&Gamble PG
91.68
Progressive PGR 55.79
Prologis
PLD 63.38
PrudentialFin PRU 116.86
Prudential
PUK 49.99
PublicServiceEnt PEG 51.32
PublicStorage PSA 208.21
PulteGroup PHM 33.37
Qiagen
QGEN 32.54
Qorvo
QRVO 66.79
Qualcomm
QCOM 64.50
QuantaServices PWR 37.80
QuestDiag
DGX 99.48
-0.47
-0.49
-2.85
-0.07
0.47
0.40
-0.04
0.02
0.11
...
0.10
0.15 RELX
RENX 22.77
-0.60 RELX
RELX 23.41
0.09 RPM
RPM 52.27
-0.45 RSP Permian RSPP 37.04
-1.78 RalphLauren RL
97.33
-1.05 RandgoldRscs GOLD 94.37
0.23 RaymondJames RJF
88.67
0.18 Raytheon
RTN 187.43
-1.55 RealtyIncome O
56.35
-0.72 RedHat
RHT 128.86
0.29 RegencyCtrs REG 69.00
0.30 RegenPharm REGN 385.72
1.80 s RegionsFin
RF
17.30
-0.38 ReinsGrp
RGA 154.89
0.69 RelianceSteel RS
83.79
-0.52 RepublicSvcs RSG 65.50
-0.06 ResMed
RMD 86.12
0.13 RestaurantBrands QSR 60.92
-0.99 RioTinto
RIO 49.49
-0.82 RobertHalf
RHI 55.40
-0.04 Rockwell
ROK 193.84
0.13 RockwellCollins COL 134.89
0.30 RogersComm B RCI
50.14
0.04 Rollins
ROL 46.92
0.56 RoperTech
ROP 259.14
0.68 s RossStores ROST 78.54
-0.49 RoyalBkCanada RY
79.75
0.16 RoyalBkScotland RBS
7.53
0.01 RoyalCaribbean RCL 126.55
-0.05 RoyalDutchA RDS.A 64.90
R S
Stock
TeekayLNG un
TGP
TelecomArgentina TEO
TexasInstruments TXN
TexasRoadhouse TXRH
Textron
TXT
TierReit
TIER
TopBuild
BLD
Torchmark
TMK
TotalSystem
TSS
TransUnion
TRU
Twitter
TWTR
USA Tech
USAT
UbiquitiNetworks UBNT
Unifirst
UNF
UnionPacific
UNP
UnitedRentals
URI
UnitedSecBcshrs UBFO
UrbanOutfitters URBN
UsanaHealth
USNA
ValeroEnergy
VLO
Verso
VRS
VikingTherap
VKTX
Vodafone
VOD
WEX
WEX
Waddell&ReedFin WDR
WellesleyBancorp WEBK
WellsFargo Wt WFC.WS
WellsFargo
WFC
WillScotWt
WSCWW
WillScot
WSC
Winnebago
WGO
WolverineWwide WWW
WW Ent
WWE
Zoetis
ZTS
2.60
9.25
0.13
28.04
33.55
12.53
8.72
6.30
2.90
22.04
7.40
21.15
0.12
3.30
5.60
2.70
11.78
0.29
2.22
25.09
14.10
0.01
3.52
3.65
-12.4
3.3
-64.1
-2.1
-0.5
-2.1
1.6
-1.1
-4.9
-0.4
0.6
-1.4
-8.4
0.6
-3.6
-3.9
-2.0
-7.1
-7.3
-0.5
-0.6
...
...
-2.6
DenaliTherap
DNLI
DifferentialBrds DFBG
EPR Prop
EPR
EllingtonFin
EFC
EllingtonResiMtg EARN
EssaPharma
EPIX
FORM
FH
Ferrellgas
FGP
FortressBioPfdA FBIOP
Frank'sIntl
FI
FrontierCommPfA FTRPR
Frontline
FRO
Funko
FNKO
GEE Group
JOB
GlobalNetLease GNL
GlobalSCAPE
GSB
GoldenMinerals AUMN
IDT
IDT
IMPAC Mortgage IMH
IdealPower
IPWR
ImmunePharma IMNP
Insperity
NSP
JasonIndustriesWt JASNW
KennedyWilson KW
KrystalBiotech
KRYS
LM Funding Wt LMFAW
LevelBrands
LEVB
LindbladExpedWt LINDW
MedleyCapital
MCC
NanoDimension NNDM
NaturalHlthTrends NHTC
Neovasc
NVCN
NordicAmerTankers NAT
OFGBancorpPfB OFGpB
ObalonTherap
OBLN
OpGen
OPGN
Oragenics
OGEN
OxbridgeRe
OXBR
PPL
PPL
PAVmed
PAVM
PershingGold
PGLC
PPlus RRD-1
PYS
RandLogistics
RLOG
RealNetworks
RNWK
RestorationRob HAIR
RiverNorthMktPfA RMPLp
RosettaGenmcs ROSG
RubiconProject RUBI
scPharm
SCPH
SoJerseyInd
SJI
StellarBiotech
SBOT
TESARO
TSRO
TOP Ships
TOPS
TeekayTankers TNK
TiVo
TIVO
Vivus
VVUS
VornadoPfdI
VNOpI
Welltower
HCN
YingliGreenEner YGE
ZaiLab
ZLAB
Net YTD
NAV Chg % Ret Fund
28.27 -0.08
37.43 -0.16
PRIMECAP Odyssey Fds
AggGrowth r 44.40 -0.12
37.46 -0.04
Growth r
Principal Investors
14.00 -0.01
DivIntlInst
Prudential Cl Z & I
14.50 -0.06
TRBdZ
Schwab Funds
41.29 -0.13
S&P Sel
TIAA/CREF Funds
19.68 -0.08
EqIdxInst
IntlEqIdxInst 20.03 -0.05
Tweedy Browne Fds
28.74 -0.08
GblValue
VANGUARD ADMIRAL
248.61 -0.81
500Adml
34.89 -0.12
BalAdml
11.73 -0.03
CAITAdml
CapOpAdml r 154.91 -0.28
37.39 +0.07
EMAdmr
77.83 -0.21
EqIncAdml
88.19 -0.31
ExplrAdml
84.88 -0.49
ExtndAdml
GNMAAdml 10.45 -0.02
73.04 -0.30
GrwthAdml
HlthCareAdml r 90.90 -0.24
HYCorAdml r 5.91 -0.01
25.79 -0.07
InfProAd
94.86 -0.38
IntlGrAdml
ITBondAdml 11.34 -0.04
ITIGradeAdml 9.73 -0.02
LTGradeAdml 10.53 -0.09
MidCpAdml 191.90 -0.70
91.15 -0.37
MorgAdml
11.39 -0.03
MuHYAdml
14.07 -0.04
MuIntAdml
11.61 -0.03
MuLTAdml
10.88 -0.02
MuLtdAdml
MuShtAdml 15.72 -0.01
PrmcpAdml r 134.36 -0.12
REITAdml r 107.06 -14.31
SmCapAdml 70.82 -0.37
STBondAdml 10.38 -0.01
STIGradeAdml 10.63 -0.01
10.73 -0.03
TotBdAdml
TotIntBdIdxAdm 22.01 -0.05
TotIntlAdmIdx r 30.36 -0.05
67.14 -0.25
TotStAdml
14.38 -0.04
TxMIn r
41.62 -0.11
ValAdml
66.94 -0.13
WdsrllAdml
65.00 -0.23
WellsIAdml
75.75 -0.23
WelltnAdml
78.89 -0.20
WndsrAdml
VANGUARD FDS
27.55 -0.05
DivdGro
Value
2.2
1.3
0.8
0.8
1.2
0.3
-2.4
-3.8
0.3
0.8
-0.5
1.6
-0.5
-0.2
-0.9
0.6
-1.3
0.5
0.2
-1.0
-1.0
3.7
10.9
0.1
1.1
0.9
2.8
-1.4
-0.9
0.8
0.8
-0.9
0.7
-0.6
0.2
Lows
ADOMANI
ADOM
AileronTherap
ALRN
AkersBiosciences AKER
Alexander&Baldwin ALEX
AssuredGuaranty AGO
AzurePowerGlbl AZRE
BEST
BSTI
BlackRockCapInvt BKCC
Broadvision
BVSN
CBL AssocPfdD CBLpD
CM Finance
CMFN
Caesarstone
CSTE
CamberEnergy CEI
Catasys
CATS
ChemoCentryx CCXI
Co-Diagnostics CODX
ColonyNorthStar CLNS
ComstockMining LODE
ConforMIS
CFMS
Cowen7.35%Nts COWNZ
CrossTimbers
CRT
CytoriTherapWt CYTXW
DHT
DHT
DAVIDsTEA
DTEA
25.5 R2040
7.2
20.40
38.70
104.30
54.21
56.58
20.72
75.06
90.81
80.23
56.77
25.49
10.10
71.03
171.80
133.67
170.33
11.10
34.87
74.90
89.21
14.80
4.32
31.61
139.39
22.88
29.75
27.65
61.27
1.39
12.60
58.45
31.32
33.28
73.58
52-Wk %
Sym Hi/Lo Chg
18.20
0.70
65.22
14.57
12.36
0.20
1.07
3.89
20.01
5.79
10.85
4.58
6.27
2.46
20.62
3.40
0.37
10.20
10.35
1.20
0.60
58.05
0.01
17.30
8.03
0.03
4.00
1.36
5.24
2.90
15.29
0.54
2.51
21.64
6.85
0.17
0.23
2.00
32.40
2.16
2.44
19.70
0.19
3.85
4.69
25.00
0.48
1.68
12.04
31.01
0.85
76.74
0.26
1.33
14.10
0.50
24.99
64.11
1.72
23.22
-2.3
-9.8
-3.3
-1.6
-2.8
-8.3
-1.8
-3.2
-7.3
-0.9
-8.4
-1.1
-11.1
...
-2.5
-2.9
-2.5
-3.1
-1.4
-6.0
-12.3
-0.5
-37.6
-2.8
-10.3
-39.6
-5.7
-6.8
0.4
-8.9
-2.6
-3.8
-1.5
-0.3
-3.7
-9.3
-9.7
4.4
-4.6
-4.7
-5.4
-2.6
-9.1
-3.0
-4.6
-0.2
-0.9
11.8
-5.4
-3.2
1.1
-1.2
-6.5
-9.5
1.4
-4.2
...
-4.2
-4.8
-1.6
Net YTD
NAV Chg % Ret
215.45 -0.58
21.8 HlthCare r
19.3 INSTTRF2020 22.90 -0.06
INSTTRF2025 23.23 -0.06
33.8 INSTTRF2030 23.48 -0.06
32.8 INSTTRF2035 23.73 -0.06
INSTTRF2040 23.97 -0.07
27.3 INSTTRF2045 24.14 -0.07
39.54 -0.05
IntlVal
20.11 -0.06
5.9 LifeCon
33.93 -0.09
LifeGro
27.41 -0.08
22.1 LifeMod
27.07
...
PrmcpCor
31.10 -0.02
21.3 SelValu r
27.75
-0.08
STAR
24.5
10.63 -0.01
STIGrade
16.12 -0.04
14.8 TgtRe2015
32.12 -0.09
TgtRe2020
18.88 -0.05
22.1 TgtRe2025
34.18 -0.09
13.8 TgtRe2030
21.04 -0.06
4.4 TgtRe2035
36.31 -0.10
30.3 TgtRe2040
22.83 -0.06
28.1 TgtRe2045
36.73 -0.10
TgtRe2050
18.3
13.70 -0.03
TgtRetInc
22.8
17.7 TotIntBdIxInv 11.01 -0.03
26.83 -0.10
1.8 WellsI
43.86 -0.13
28.6 Welltn
37.73 -0.07
19.9 WndsrII
6.7 VANGUARD INDEX FDS
248.55 -0.81
2.1 500
209.47 -1.21
42.1 ExtndIstPl
57.12 -0.35
SmValAdml
3.5
10.69 -0.03
3.9 TotBd2
18.15 -0.03
TotIntl
10.6
67.11 -0.24
TotSt
19.0
VANGUARD INSTL FDS
30.6
34.90 -0.11
BalInst
7.3
DevMktsIndInst 14.40 -0.04
4.1
DevMktsInxInst 22.52 -0.05
5.9
84.88 -0.49
ExtndInst
2.0
73.04 -0.30
GrwthInst
1.1
10.51 -0.03
InPrSeIn
30.3
245.28 -0.79
InstIdx
-5.9
245.31 -0.79
InstPlus
15.7
60.23 -0.22
InstTStPlus
1.1
42.39 -0.16
MidCpInst
2.0
209.08 -0.76
MidCpIstPl
3.2
70.82 -0.37
SmCapInst
2.5
STIGradeInst 10.63 -0.01
25.7
10.73 -0.03
TotBdInst
21.3
10.69 -0.03
TotBdInst2
24.9
10.73 -0.03
TotBdInstPl
17.0
TotIntBdIdxInst 33.03 -0.08
16.6
TotIntlInstIdx r 121.43 -0.18
9.8
TotItlInstPlId r 121.45 -0.19
14.5
67.15 -0.25
TotStInst
19.1
41.62 -0.11
ValueInst
Western Asset
19.4 CorePlusBdI
NA
...
19.9
13.7
15.5
17.1
18.7
20.2
20.9
26.9
10.6
18.7
14.6
27.0
18.9
18.0
1.9
11.1
13.7
15.5
17.1
18.6
20.2
20.9
20.9
8.2
2.5
9.7
14.4
16.5
Tax Plan Could Hurt
Stock-Options Pay
BY GUNJAN BANERJI
Companies stand to lose a
longstanding tax break on
some stock options awarded
primarily to high earners.
Publicly traded corporations can deduct stock options
they give to top leaders earning more than $1 million a
year from their tax bills—a
Clinton-era rule created to cap
how much the leaders get
paid. The provision applies to
companies’ highest-paid executives, those whose pay must
be disclosed to shareholders.
Now, in the plan being proposed by U.S. lawmakers, any
pay higher than $1 million a
year would be subject to taxation, even so-called performance-based pay such as stock
options.
Under the rules, stock options wouldn’t be deductible,
meaning large companies
would be forced to pony up to
lure the best executives.
“It’s effectively going to be
a tax on companies when they
pay their CEOs more than $1
million [a year],” said Wayne
Guay, professor of accounting
at the University of Pennsylvania’s Wharton School of Business.
Large corporations typically
dish out three types of pay to
top executives: cash salary,
company shares and stock options. The last can reap millions for the employee or expire worthless.
Stock options vest over
Stock
Net
Sym Close Chg
-0.19 RoyalDutchB RDS.B 66.30
RYAAY 106.50
0.15 Ryanair
SAP 115.20
-0.84 SAP
-0.69 S&P Global SPGI 172.00
-0.09 SBA Comm SBAC 157.99
-1.64 SEI Investments SEIC 71.80
SINA 102.23
0.89 Sina
SHI 55.67
-0.33 SINOPEC
-0.21 SK Telecom SKM 27.93
-2.05 SLGreenRealty SLG 101.62
SSNC 40.84
0.04 SS&C Tech
SIVB 238.23
0.84 SVB Fin
SageTherap
SAGE 161.37
-0.73
0.25 Salesforce.com CRM 104.26
SNY 43.18
-0.20 Sanofi
18.13
0.59 SantanderCons SC
SSL 31.39
-2.48 Sasol
Scana
SCG
41.90
0.74
-0.38 Schlumberger SLB 64.39
SCHW 51.81
-0.65 s SchwabC
-3.88 s ScottsMiracleGro SMG 102.98
83.77
-0.47 ScrippsNetworks SNI
STX 42.18
0.14 Seagate
SealedAir
SEE
49.66
-0.26
-0.88 SeattleGenetics SGEN 52.57
7.44
-0.58 SemicondctrMfg SMI
0.75 SempraEnergy SRE 112.19
SensataTech ST
52.31
ServiceCorp SCI
37.35
ServiceMaster SERV 51.91
-0.14 ServiceNow NOW 129.96
-0.14 ShawComm B SJR 22.71
-0.20 SherwinWilliams SHW 411.87
0.13 ShinhanFin
SHG 45.84
-0.73 Shire
SHPG 157.65
-0.30 Shopify
SHOP 105.73
-0.28 SignatureBank SBNY 137.46
-1.30 SimonProperty SPG 168.42
-1.45 SiriusXM
SIRI
5.32
-0.58 SkechersUSA SKX 37.61
-1.37 Skyworks
SWKS 95.68
2.33 SmithAO
AOS 61.29
-0.03 Smith&Nephew SNN 34.90
-1.27 Smucker
SJM 121.47
-0.24 Snap
SNAP 15.77
-0.94 SnapOn
SNA 172.35
0.42 SOQUIMICH SQM 58.43
-0.14 Sony
SNE 45.34
-0.39 Southern
SO
49.81
0.03 s SoCopper
SCCO 45.01
1.01 s SouthwestAir LUV 65.92
0.06 SpectraEnerPtrs SEP 41.04
0.16 SpectrumBrands SPB 108.27
0.07 SpiritAeroSys SPR 85.38
-2.18 Splunk
SPLK 84.21
0.98 Sprint
S
5.58
0.18 Square
SQ
36.92
-0.01 StanleyBlackDck SWK 168.65
-0.03 Starbucks
SBUX 58.01
0.05 StateStreet STT 97.87
-0.22
3.19
-0.72
1.09
-3.80
0.02
-2.11
-1.49
-0.12
-2.17
0.11
-2.42
-2.95
-0.82
-0.31
0.02
-1.36
-1.08
0.79
0.07
0.14
0.38
-0.18
0.28
0.16
0.26
-2.88
-0.14
0.41
-0.41
-0.73
-0.13
3.72
-0.54
5.85
-1.89
-1.47
-1.40
-0.11
-0.36
-0.16
0.01
0.02
0.86
-0.33
-0.27
1.58
-0.39
-0.74
0.41
0.22
-0.67
-0.29
-0.02
0.67
-0.02
-0.83
1.04
-0.02
-0.34
2.5
2.7
3.0
3.1
17.7
27.1
9.5
14.2
20.9
28.2
18.8
31.8
25.9
17.7
NA
4.5
NA
NA
NA
NA
37.7
15.7
16.2
21.9
34.7
27.6
39.1
26.9
19.7
25.4
10.5
31.3
3.7
26.2
15.5
17.4
19.2
20.7
22.0
17.7
11.3
3.1
25.6
21.2
13.8
25.0
25.0
17.7
28.6
2.2
22.1
22.1
21.3
19.0
19.0
15.7
2.1
3.2
3.2
3.2
2.6
25.7
25.7
21.3
17.0
NA
Net
Sym Close Chg
Statoil
STO 20.19
s SteelDynamics STLD 41.40
Steris
STE 89.98
SterlingBancorp STL 25.75
STMicroelec STM 22.21
Stryker
SYK 155.26
SumitomoMits SMFG 8.69
SunComms SUI
92.16
SunLifeFinancial SLF 40.53
SuncorEnergy SU
34.39
s SunTrustBanks STI
65.63
Symantec
SYMC 28.31
SynchronyFin SYF 38.18
Syngenta
SYT 92.70
Synopsys
SNPS 88.37
SynovusFin SNV 48.85
Sysco
SYY 61.02
T U V
s
s
s
s
TAL Education TAL 28.86
TD Ameritrade AMTD 51.96
TE Connectivity TEL 95.91
Telus
TU
37.30
Ternium
TX
31.16
TIM Part
TSU 18.79
TJX
TJX 76.06
T-MobileUS TMUS 63.64
TRowePrice TROW 103.14
TaiwanSemi TSM 39.34
TakeTwoSoftware TTWO 109.28
Tapestry
TPR 43.48
TargaResources TRGP 45.69
Target
TGT 64.06
TataMotors TTM 32.55
TechnipFMC FTI
28.69
TeckRscsB
TECK 24.00
TelecomArgentina TEO 38.41
TelecomItalia TI
8.71
TelecomItalia A TI.A
7.31
TeledyneTech TDY 182.75
Teleflex
TFX 254.23
TelefonicaBras VIV 15.36
Telefonica
TEF
9.87
TelekmIndonesia TLK 30.78
Tenaris
TS
30.60
Teradyne
TER 42.46
Tesla
TSLA 331.10
TevaPharm TEVA 17.90
TexasInstruments TXN 104.10
Textron
TXT 56.35
ThermoFisherSci TMO 193.89
ThomsonReuters TRI
43.46
ThorIndustries THO 153.92
3M
MMM 238.39
Tiffany
TIF 100.42
TimeWarner TWX 89.88
Toll Bros
TOL 47.44
Torchmark
TMK 90.14
Toro
TTC 64.58
TorontoDomBk TD
56.35
Total
TOT 54.57
Stock
Net
Sym Close Chg
Stock
Average Yields of Major Banks
0.03
-1.26
0.52
-3.05
W X Y Z
0.79
-1.34
1.52
-1.56
-0.66
0.86
0.90
-0.36
-0.66
-0.47
0.36
0.02
-1.39
-0.83
5.23
-0.56
-2.86
1.04
-0.88
0.16
0.62
-0.39
-0.82
0.03
-0.42
-0.14
-0.46
-0.53
0.05
0.74
-0.08
-0.05
-0.41
0.07
0.21
-0.72
-0.92
1.01
0.06
-0.76
-0.29
0.26
-0.04
-0.09
-1.14
-0.06
-0.25
0.81
0.29
-0.62
1.42
1.36
6.95
-0.09
0.17
Tuesday, December 19, 2017
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
Savings
0.13
0.07
0.07
0.13
0.20
0.36
0.50
0.46
0.95
Jumbos
0.25
0.07
0.08
0.14
0.22
0.39
0.55
0.49
1.00
Savings
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.01
Jumbos
-0.01
0.00
0.00
0.00
0.00
0.01
0.01
0.00
0.01
Type
National average
Weekly change
Consumer Savings Rates
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Minimum
Yield
(%)
Money market and savings account
Bank/rank
Phone number
Yield
Minimum
(%)
Six-month CD
$1
1.50
M.Y. Safra Bank, FSB /NR
(212) 652-7200
$5,000
1.42
CIT Bank /5
(855) 462-2652
$100
1.35
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.41
Barclays /5
(888) 720-8756
$0
1.30
CD Bank /4
(888) 201-8185
$10,000
1.40
$0
0.81
Ally Bank /5
(877) 247-2559
$0
2.00
$5,000
0.30
M.Y. Safra Bank, FSB /NR
(212) 652-7200
$5,000
1.76
$10,000
0.15
Banesco USA /4
(786) 552-0524
$1,500
1.75
$10,000
0.15
$1,000
2.10
$500
2.00
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.88
DollarSavingsDirect /4
(866) 395-8693
One-month CD
EH National Bank /5
(888) 392-5265
M.Y. Safra Bank, FSB /NR
(212) 652-7200
VirtualBank /4
(877) 998-2265
Two-month CD
VirtualBank /4
(877) 998-2265
One-year CD
Two-year CD
iGOBanking.com /NR
(800) 581-2889
$1,000
0.05
Net
Sym Close Chg
VOD 31.45
-0.12 s TotalSystem TSS 79.67 0.66 s Vodafone
0.52 ToyotaMotor TM 127.01 -0.31 VornadoRealty VNO 78.18
0.89 TractorSupply TSCO 70.50 1.30 VoyaFinancial VOYA 46.28
-0.10 TransCanada TRP 47.96 -0.08 VulcanMatls VMC 119.26
0.21 TransDigm
TDG 270.92 -4.48
-0.23 s TransUnion TRU 55.93 -0.28
-0.06 Travelers
TRV 135.54 0.33 WABCO
WBC 142.95
-2.60 Trimble
TRMB 41.23 0.09 WEC Energy WEC 66.13
-0.22 TurkcellIletism TKC
9.84 -0.10 s WEX
WEX 138.26
0.02 TurquoiseHill TRQ
3.27 0.15 W.P.Carey
WPC 69.38
-0.40 21stCenturyFoxA FOXA 35.06 -0.13 WPP
WPP 90.57
-0.34 21stCenturyFoxB FOX 34.37 -0.13 Wabtec
WAB 78.91
-0.33 s Twitter
TWTR 25.08 0.40 Wal-Mart
WMT 98.80
-0.07 TylerTech
TYL 180.29 -1.57 WalgreensBoots WBA 72.19
0.45 TysonFoods TSN 81.46 -1.39 WasteConnections WCN 70.32
-0.16 UBS Group UBS 18.38 0.01 WasteMgt
WM 85.65
-0.32 UDR
UDR 38.14 -1.23 Waters
WAT 198.08
UGI
UGI 46.79 -0.43 Watsco
WSO 167.63
US Foods
USFD 30.70 -0.24 Wayfair
W
81.69
WB 107.16
-1.11 UltaBeauty ULTA 227.47 4.81 Weibo
-0.36 UltSoftware ULTI 220.70 0.83 WellCareHealth WCG 198.92
WFC 60.36
-0.08 UltraparPart UGP 21.97 0.10 s WellsFargo
HCN 64.48
-0.14 UnderArmour A UAA 15.43 -0.22 t Welltower
UnderArmour
C
UA
14.10
-0.14
0.38
WestPharmSvcs WST 99.65
UN
56.93 -0.39 WestarEnergy WR
-0.09 Unilever
53.47
UL
55.75 -0.47 WestAllianceBcp WAL 58.33
0.59 Unilever
0.17 s UnionPacific UNP 133.24 0.77 WesternDigital WDC 84.24
-0.30 UnitedContinental UAL 64.43 -0.13 WesternGasEquity WGP 36.75
2.46 0.02 WesternGasPtrs WES 46.81
-0.06 UnitedMicro UMC
UPS 119.00 0.19 WesternUnion WU 19.59
-1.04 UPS B
-0.01 s UnitedRentals URI 166.38 -2.19 WestlakeChem WLK 102.90
-1.33 US Bancorp USB 54.56 -0.22 WestpacBanking WBK 24.02
X
33.84 0.41 WestRock
-0.02 US Steel
WRK 63.40
0.91 UnitedTech UTX 126.78 0.07 Weyerhaeuser WY
35.48
0.14 UnitedTherap UTHR 135.52 -0.69 WheatonPrecMet WPM 21.81
-0.14 UnitedHealth UNH 222.04 -0.63 Whirlpool
WHR 166.10
0.31 UnivDisplay OLED 179.35 1.00 Williams
WMB 30.06
0.09 UniversalHealthB UHS 113.04 -0.08 WilliamsPartners WPZ 38.71
UnumGroup
UNM
54.21
0.26
WillisTowers WLTW 154.15
0.09
VEON 3.90 0.05 Wipro
WIT
5.59
-0.34 VEON
VER
7.85 -0.16 WooriBank
WF
45.21
2.32 VEREIT
VFC 73.85 -0.29 Workday
WDAY 102.93
-0.04 VF
V
112.14 -1.41 Wyndham
WYN 113.56
0.08 Visa
-0.41 VailResorts MTN 219.26 -2.73 WynnResorts WYNN 166.14
Vale
VALE
11.56
0.01
XPO Logistics XPO 77.74
-0.03
XEL 49.33
0.09 ValeantPharm VRX 20.86 -0.34 XcelEnergy
XRX 30.01
-7.77 s ValeroEnergy VLO 88.07 -0.86 Xerox
VNTV 75.01
... Xilinx
XLNX 69.80
-0.62 Vantiv
VAR 110.70 -0.08 Xylem
XYL 67.86
0.83 VarianMed
VEDL 19.55 0.23 YPF
YPF 21.01
0.16 Vedanta
YY 111.99
0.32 VeevaSystems VEEV 56.66 0.81 YY
VTR 61.83 -2.56 Yandex
YNDX 32.26
-0.27 Ventas
VRSN 115.55 -0.55 YumBrands YUM 82.86
-0.20 VeriSign
YUMC 42.01
-0.03 VeriskAnalytics VRSK 96.00 0.06 YumChina
VZ
52.83 -0.42 ZTO Express ZTO 14.99
0.31 Verizon
VertxPharm
VRTX
145.15
-0.29
ZayoGroup
ZAYO 36.29
0.09
VIAB 30.93 0.27 Zillow C
Z
43.21
-0.40 Viacom B
VIA 34.80 0.05 Zillow A
ZG
43.00
0.27 Viacom A
VIPS 12.01 0.26 ZimmerBiomet ZBH 121.38
0.19 Vipshop
0.01 VistraEnergy VST 18.00 0.21 ZionsBancorp ZION 50.89
VMW 128.14 -0.75 s Zoetis
ZTS 72.80
-0.29 VMware
time, which means people can
access them after they have
been at the company for a certain number of years.
Options give executives and
investors the right to buy
shares of a company at a later
date and at a specific prices.
Options are an attractive
way to compensate company
leaders because the contracts
can have outsize payoffs. Executives can cash in on millions
in gains, or if their shares
don’t rise, not exercise the
contracts without taking a
loss. The popularity of awarding stock options as pay tends
to ebb with the rise and fall of
the U.S. stock market, analysts
say.
Some experts say that even
if the proposal from Congress
goes through, companies will
continue to award potentially
lucrative options to the most
sought-after talent.
“You’ll see a continuation of
performance based awards
and of options,” said Domnick
Bozzetti, a New York-based
partner at law firm Morrison
& Foerster. They are a “unique
incentive.”
Some lawyers and analysts
refer to the $1-million cap as
antiquated. It hasn’t been updated in decades and doesn’t
account for the rise in inflation or other changes in compensation trends.
“The notion that Apple or
Wal-Mart could get a CEO for
$1 million [a year] is ludicrous,” Mr. Guay said.
BANKRATE.COM® MMA, Savings and CDs
Applied Bank /5
(800) 616-4605
Biggest 1,000 Stocks | WSJ.com/stocks
Continued From Page B10
0.3
1.5
0.7
-1.3
0.5
-0.3
7.4
0.7
0.9
5.0
2.0
-0.9
0.1
-0.9
-5.6
-18.8
-2.9
1.8
...
-1.4
0.9
-3.0
83.1
3.2
0.1
-0.9
0.3
...
16.6
6.2
-0.3
0.1
-0.2
5.6
0.5
-6.9
2.1
-0.7
5.8
0.9
1.3
1.2
5.5
0.1
0.1
-0.5
-1.9
-4.8
-0.1
2.6
0.9
0.3
1.3
1.8
3.8
...
...
-0.6
7.9
-2.4
0.1
52-Wk %
Sym Hi/Lo Chg Stock
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Tuesday, December 19, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
-0.02
-0.09
-1.13
-0.04
-0.11
...
+0.09
-0.14
-0.10
...
...
-0.71
-0.03
+0.02
+0.11
+0.03
-0.04
-0.09
63.53
12.25
88.97
95.30
28.55
37.85
47.47
91.35
61.35
15.39
77.95
65.19
144.63
68.70
6.36
2.94
82.70
91.95
199.99
70.39
74.12
6.53
7.14
18.62
43.12
109.10
27.35
7.50
2.20
3.86
19.97
33.65
17.48
10.82
10.75
8.55
25.37
1.55
46.20
58.80
78.84
71.00
16.86
52.30
103.67
13.73
67.78
54.85
38.85
3.41
45.12
66.23
41.82
46.35
25.98
22.50
22.00
66.48
1.77
26.33
14.33
Net YTD
NAV Chg % Ret Fund
Fund
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes.
NAV is net asset value. Percentage performance figures are total returns, assuming
reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect
sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading
day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period.
Fund
MichaelKors
KORS
MiXTelematics MIXT
Moog B
MOG.B
MotorolaSol
MSI
NatlStorage
NSA
NationalVision
EYE
NavistarIntl
NAV
NeenahPaper
NP
Netgear
NTGR
Newmark
NMRK
NexstarMedia
NXST
Nike
NKE
NorfolkSouthern NSC
NuSkinEnts
NUS
OnDeckCapital
ONDK
OnTrackInnov
OTIV
Overstock
OSTK
PRA HealthSci PRAH
ParkerHannifin PH
Paychex
PAYX
PerkinElmer
PKI
Pixelworks
PXLW
Presbia
LENS
Presidio
PSDO
ProgressSoftware PRGS
ProtoLabs
PRLB
RBB Bancorp
RBB
RCM Tech
RCMT
RENN Fund
RCG
RadaElectronic RADA
RayonierAdvMatls RYAM
RedRockResorts RRR
RegionsFin
RF
Remark
MARK
ResoluteForest RFP
Resonant
RESN
ResourceCapPfdB RSOpB
RiceBranTech
RIBT
RiotBlockchain
RIOT
Roku
ROKU
RossStores
ROST
RymanHospitality RHP
Savara
SVRA
SchwabC
SCHW
ScottsMiracleGro SMG
SimplyGoodFoods SMPL
SixFlags
SIX
SkyWest
SKYW
SleepNumber
SNBR
SmithMicro
SMSI
SoCopper
SCCO
SouthwestAir
LUV
SteelDynamics STLD
StevenMadden SHOO
StitchFix
SFIX
Strats WlMrt GJO GJO
SunTrustBanksWtB STI.WS.B
SunTrustBanks STI
SuperiorDrilling SDPI
Syntel
SYNT
TechTarget
TTGT
EmgMktEq
Explanatory Notes
American Century Inv
43.85
Ultra
American Funds Cl A
31.49
AmcpA p
40.75
AMutlA p
27.09
BalA p
12.86
BondA p
63.99
CapIBA p
53.55
CapWGrA
57.29
EupacA p
65.76
FdInvA p
52.94
GwthA p
10.37
HI TrA p
40.35
ICAA p
23.25
IncoA p
45.45
N PerA p
48.55
NEcoA p
67.52
NwWrldA
57.75
SmCpA p
12.98
TxExA p
45.55
WshA p
Baird Funds
10.86
AggBdInst
11.21
CorBdInst
BlackRock Funds A
19.62
GlblAlloc p
BlackRock Funds Inst
22.78
EqtyDivd
19.73
GlblAlloc
StratIncOpptyIns 9.94
Bridge Builder Trust
10.15
CoreBond
Dimensional Fds
10.87
5GlbFxdInc
30.37
EmgMktVa
EmMktCorEq 22.63
14.32
IntlCoreEq
20.20
IntlVal
20.83
IntSmCo
22.45
IntSmVa
22.79
US CoreEq1
US CoreEq2 21.54
35.95
US Small
US SmCpVal 37.81
52-Wk %
Sym Hi/Lo Chg Stock
Stock
ly
.
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American
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.
Three-month CD
Northern Bank Direct /4
(844) 348-8996
Five-year CD
$5,000
1.16
Capital One 360 /5
(800) 289-1992
$10,000
1.15
Goldman Sachs Bank USA /5
(855) 730-7283
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.06
EverBank /4
(855) 228-6755
M.Y. Safra Bank, FSB /NR
(212) 652-7200
CD Bank /4
(888) 201-8185
$0
2.45
$500
2.40
$5,000
2.40
High yield jumbos - Minimum is $100,000
Money market and savings account
Six-month CD
ableBanking,adivisionofNortheastBank/5
(877) 505-1933
1.30
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.42
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.26
First Internet Bank of Indiana /4
(888) 873-3424
1.41
BBVA Compass /3
(800) COMPASS
1.25
Luana Savings Bank /5
(800) 666-2012
1.40
EH National Bank /5
(888) 392-5265
0.81
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
1.77
M.Y. Safra Bank, FSB /NR
(212) 652-7200
0.30
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.76
USAA /NR
(800) 583-8295
0.22
EverBank /4
(855) 228-6755
1.72
One-month CD
One-year CD
Two-month CD
Two-year CD
VirtualBank /4
(877) 998-2265
0.15
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
2.00
Applied Bank /5
(800) 616-4605
0.05
First Internet Bank of Indiana /4
(888) 873-3424
1.88
Citizens Trust Bank /4
(404) 659-5959
0.01
Luana Savings Bank /5
(800) 666-2012
1.86
Luana Savings Bank /5
(800) 666-2012
1.21
EverBank /4
(855) 228-6755
2.40
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.16
First Internet Bank of Indiana /4
(888) 873-3424
2.38
First Internet Bank of Indiana /4
(888) 873-3424
1.06
M.Y. Safra Bank, FSB /NR
(212) 652-7200
2.36
Three-month CD
Five-year CD
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B14 | Wednesday, December 20, 2017
* *
THE WALL STREET JOURNAL.
MONEY & INVESTING
Beijing Tries to Curb Fund Data
Industry group’s move
is seen as an attempt
to slow the pace of
asset accumulation
SHANGHAI—A Chinese industry group told the country’s top raters of investment
funds to stop publicizing the
sizes of money-market mutual
funds, in what is being seen as
another attempt by Beijing to
slow the industry’s rapid pace
of asset accumulation.
The Asset Management Association of China, an industry
group supervised by China’s
securities regulator, the China
Securities Regulatory Commission, this month held a meeting with about a dozen representatives from brokerage
firms, fund-rating companies
and several state-owned newspapers focusing on the securities industry. They were advised to de-emphasize their
coverage of money-market
mutual funds, according to an
attendee.
A copy of an internal directive reviewed by The Wall
Street Journal told firms that
rate and rank investment
funds to avoid publishing the
asset sizes for money-market
funds, which could have the
effect of drawing more investors to the largest funds. The
directive encouraged the rating firms to use alternative
evaluation systems to develop
“rational and objective” rankings.
The directive came as various institutions and financial
newspapers were preparing to
publish their annual rankings
of China’s mutual funds at
year-end. Some of those rankings have traditionally been
based on asset size.
Chinese regulators have
grown concerned about potential risks from the country’s
swelling money-market mutual
fund industry, whose total assets have surged 54% this year
to nearly $1 trillion at the end
of September.
Many investors have been
drawn to the funds’ generous
yields, which in some cases
are close to 4% on an annualized basis.
The fund association’s recent move “is aimed at cooling
down rampant competition
among fund managers” for
new assets, said Rachel
Wang, director of manager research in China at Morningstar Inc. “It should help them
to focus less on scaling up”
and more on improving their
management of the funds, she
Number of money-market funds launched in China
40
30
20
10
0
0
2015
’16
’17
Note: Figure for fourth quarter of 2017 is as of Dec. 18.
Source: Wind Info
added.
China has close to 400
money-market funds, more
than double the number in
2014, but the industry’s assets
are largely concentrated
among a small number of asset managers.
The country’s biggest
money-market mutual fund,
called Yu’e Bao, is a four-yearold online investment fund
that draws cash from users of
Alipay, a mobile payments network used by hundreds of mil-
THE WALL STREET JOURNAL.
lions of Chinese citizens. The
fund’s assets nearly doubled
over the past year, reaching
$235 billion at the end of September and making it the
world’s largest money-market
mutual fund.
Yu’e Bao’s manager, Tianhong Asset Management, a
unit of China’s Ant Financial
Services Group, has taken various steps in recent months to
tame the fund’s pace of
growth. This month, it set new
limits on how much investors
could put into the fund on a
daily basis, a step aimed at
slowing inflows.
Other large mutual-fund
managers with heavy allocations
in
money-market
funds include ICBC Credit
Suisse Asset Management Co.
and E Fund Management
Co., which managed $69.7 billion and $62.6 billion, respectively, by the end of 2016, according to data from TX
Investment Consulting Co.
Chinese regulators in recent
months have become concerned about the industry’s
strong growth and the tendency of many money-market
funds to invest largely in lessliquid assets such as bank-issued commercial paper to
boost investment yields.
In October, China’s securities regulator imposed stricter
liquidity requirements on
funds and deemed some largescale money-market funds to
be “systemically significant.”
It has also slowed down its
approval of new funds. Since
October, no new money-market fund has been launched,
versus 22 in the third quarter, and 39 in the fourth
quarter a year ago, according
to data from Wind Information Co.
—Yifan Xie
BY KHADEEJA SAFDAR
Stitch Fix Inc., the fashion
startup that went public last
month, reported strong customer gains but said quarterly
profits were pinched by the
costs of expanding into men’s
and plus-size apparel.
The company, which selects
and ships outfits to its customers, has struggled to persuade investors about its ability to keep up growth and fend
off potential competition. Its
shares had priced at $15
apiece, below its target range,
but have rallied 65% since.
In after-hours trading Tuesday, the stock fell 11% to
$21.93. In regular trading, before it released results, shares
rose 3.8%.
“The business we’re in is
personalization,” CEO Katrina
Lake said in an interview
Tuesday. “It takes more than
45 minutes to articulate how
this business is different and
to show how data science actually drives our business.”
In a letter to investors,
Stitch Fix emphasized ways in
which the company differs
from typical e-commerce and
brick-and-mortar retailers. For
example, the San Francisco
company said it doesn’t experience the usual jump in holiday sales, because most of its
customers are buying outfits
for themselves rather than as
gifts.
Active clients reached 2.4
million in the three-month period ended Oct. 28, up about
202,000 from the end of July.
The company defines an active
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
Dollar
Off a Bit
As Tax
Bill Gains
Sudden Stop
Stitch Fix
Earnings
Squeezed
By Costs
European Union officials are proposing that the European Central Bank regulate the eurozone’s big investment institutions.
EU Aims to Deter Brexit Arbitrage
The European Central Bank
should take charge of regulating big investment banks in
n-
By Patricia Kowsmann
in Frankfurt and Max
Colchester in London
the eurozone, according to a
proposal to be presented by
the European Commission.
The effort is the latest move
to stop individual European
countries from luring banks
with the promise of looser
rules in the wake of Brexit.
Banks’ European brokerdealer operations are overseen
by a patchwork of national authorities. The commission, the
European Union’s executive
arm, wants to forestall local
regulators from offering
sweeteners to entice large investment banks like Goldman
Sachs Group Inc. and JPMorgan Chase & Co. as they
search for new EU bases after
the U.K. exits the trading bloc
in March 2019.
The proposed rule is ex-
no
The dollar edged lower
Tuesday with investors assessing the direction of the currency as the Republican taxcut package moved closer to
becoming law.
The Wall Street Journal
Dollar Index, which measures
the currency against a basket
of 16 others, declined for a second consecutive day, falling
less than 0.1% to 86.86.
Under the plan, U.S. corporations will pay a one-time tax
of as much as 15.5% on the
profits they have stockpiled
abroad, which could boost dollar demand as companies buy
the currency to meet the levy
and return assets to the U.S.
Going forward, many will
face no U.S. taxes on foreign
income, a change that puts the
U.S. in line with other major
developed countries.
The plan would lower taxes
by $1.5 trillion over the next 10
years. The cuts are forecast to
lift U.S. budget deficits by
about $1 trillion in the next 10
years and boost economic output by 0.5% in 2018, according
to BNP Paribas.
The tax plan “was priced in
at this point,” said Ilya Gofshteyn, a strategist at Crédit
Agricole. “There’s a bit of momentum loss as people look for
the next thing” that could provide direction.
The dollar fell despite a
Commerce Department report
that housing starts rose 3.3%
in November, surpassing forecasts of economists surveyed
by The Wall Street Journal.
Separate data showed home
builders are optimistic about
their sector.
The department also reported that the third-quarter
current-account deficit fell to
$100.57 billion. Economists
surveyed by the Journal had
expected a $116 billion deficit.
ARNE DEDERT/ASSOCIATED PRESS
BY DANIEL KRUGER
pected to be presented
Wednesday, a person familiar
with the matter said. It will be
subject to approval by EU
countries and lawmakers, according to officials.
On Monday, the ECB said it
would pay special attention to
banks’ Brexit plans to ensure
they don’t just set up shell
companies in the euro area.
Bankers want to keep as much
as possible in London after
Brexit to avoid having to create duplicate offices in Europe.
But ECB officials want guarantees that the new European
hubs are well capitalized and
have compliance staff on site.
Privately, authorities in
some EU countries have shown
relief that the ECB is ready to
step in, citing better preparedness of the central bank to
deal with complex investmentbanking issues over domestic
regulators.
If the commission proposal is
approved, the definition of
credit institutions supervised by
the ECB may have to be en-
larged to include the investment
banks, which don’t take deposits
and lend like regular banks, according to an opinion issued by
the ECB last month. Current
rules state that among other
things, banks with over €30 billion ($35.35 billion) of assets are
directly overseen by the ECB.
The ECB has already taken a
hard line, demanding that banks
move substantial numbers of
staff and capital into their European hubs. It has also been less
inclined than local regulators to
let banks flip risk back into
their London entities in the
years right after Brexit, a move
that would reduce the amount
of capital they have to shift into
their EU offices.
“We will oppose any race to
the bottom in supervisory
standards,” Sabine Lautenschläger, vice chairman of the
ECB’s banking supervisor arm,
has said.
The ECB has played tough
cop before. In 2014, it took
over regulation of eurozone
banks to address fears local
regulators were too relaxed
with their lenders and missed
problems that ultimately
caused some to collapse during the financial crisis. At
times, however, the institution
has been accused of overstepping its remit.
In October, its plan to require
banks to fully provision for unsecured new loans deemed nonperforming faced a backlash by
European lawmakers, who said
legislators, not technocrats,
should make the rules. While the
EU has been moving forward
with a banking and capital markets union, Brexit has created a
sense of urgency.
Several investment banks
have signaled they will set up
enlarged offices outside London amid expectations that
they will lose the right to serve
customers across the Continent
from the U.K. Citigroup Inc.,
Nomura Holdings Inc. and
Morgan Stanley are setting up
hubs in Frankfurt, while Goldman Sachs has chosen both the
German city and Paris.
Expansion into plussize women’s clothing
and men’s apparel
drove up expenses.
client as a person who reviewed an order in the preceding 12 months.
Profit margins declined
slightly from a year earlier as
the company invested in plussize women’s clothing and
men’s apparel, which drove up
inventory and shipping costs.
Both categories are a “drag
on the business in the short
term, but represent a significant opportunity in the future,” said Ms. Lake, who
started the business in 2011
and remains one of its biggest
shareholders.
In its fiscal first quarter,
the company reported net income of $13.5 million, compared with $13.2 million a year
ago. Revenue rose 25% to
$295.6 million. For the second
quarter, the company forecast
a revenue increase of between
21% and 24%.
For the full fiscal year, the
company projects annual sales
of $1.17 billion to $1.22 billion
and adjusted earnings before
interest, taxes, depreciation
and amortization of $40 million to $60 million.
Analysts expect full-year
revenue of $1.18 billion and
earnings of about $65 million.
Stitch Fix’s revenue rose
34%, to $977 million in the
year ended July 29, from $730
million in 2016, according to a
regulatory filing. From the
years ended July 2015 to 2016,
revenue more than doubled.
BY CHRISTOPHER ALESSI
AND ALISON SIDER
Oil prices rose, helped in
part by the outage of a North
Sea pipeline and reports that
Russia’s largest oil company
could envision continuing production curbs past 2018.
U.S. crude futures gained 30
cents, or 0.5%, to settle at
$57.46 a barrel on the New
York Mercantile Exchange on
Tuesday. Brent, the global
benchmark, advanced 39
cents, or 0.6%, to $63.80 a
barrel on ICE Futures Europe.
Russian oil company PAO
Rosneft is “contemplating
cuts beyond 2018, which is
probably supporting things a
bit,” said Thomas Pugh, commodities economist at Capital
Economics.
The Organization of the Petroleum Exporting Countries
and 10 producers outside the
group,
including
Russia,
agreed late last month to extend an accord to hold back
nearly 2% of crude production
through the end of 2018. The
deal, first agreed to a year
ago, was meant to rein in a
global supply glut that has
weighed on prices since 2014.
Pavel Fedorov, Rosneft’s
first vice president, reportedly
said that an OPEC-led agreement to curb crude output
could be extended after it expires at the end of next year,
according to Reuters.
Oil prices also have been
propped up since the closure
of the Forties Pipeline System
in the North Sea last week.
The outage, which could last
for weeks, stops the flow of
roughly 450,000 barrels of
North Sea oil a day.
“It’s not still driving prices
up, but its supporting them
where they are,” Mr. Pugh said
of the Forties disruption.
Ineos, the company that
owns the system, said Tuesday
that custom parts needed to
repair the pipeline had been
created and will be delivered in
coming days. The company
said there was no change to its
previous timeline for repair, of
two to four weeks from Dec. 11.
“I think everyone is continuing to keep a close eye on
the progress Ineos is making,”
said John Kilduff, founding
partner of Again Capital.
Also lifting prices Tuesday
were expectations that U.S.
crude stockpiles will shrink
again in data due for release
Wednesday.
Analysts surveyed by The
Wall Street Journal estimated
that crude stockpiles fell by
3.2 million barrels last week,
which would be the fifth
straight week of declines.
The American Petroleum
Institute, an industry group,
said late Tuesday that its own
data for the week showed a
5.2-million-barrel decrease in
crude supplies, a two-millionbarrel rise in gasoline stocks
and a 2.9-million-barrel fall in
distillate inventories, according to a market participant.
—Asa Fitch
contributed to this article.
SERGEI KARPUKHIN/REUTERS
Crude Gets a Boost From Pipeline Outage, Russia Report
Rosneft is reportedly considering production cuts beyond 2018.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Wednesday, December 20, 2017 | B15
* * * * * *
HEARD ON THE STREET
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Bullish Case for Bitcoin Is Flawed
Amid all of the bitcoin
nuttiness this year, some advocates for the cryptocurrency are making a reasoned
argument that it could more
than double in value from
here. Unfortunately for bitcoin holders, the argument is
flawed in two key ways.
The advocates say that
with all of the advantages of
bitcoin—potentially reducing
transaction costs and settlement times while protecting
privacy and preventing governments from debasing its
value—a portion of global
commerce eventually will be
settled in the currency.
The currency can’t be fundamentally debased because
just 21 million bitcoins will
ever be issued, so even if the
portion of global commerce
ultimately settled via bitcoin
is small, the currency’s value
should rise, proponents say.
The global money supply
as measured by M2 was at
$79.5 trillion in 2016, according to the CIA World Factbook. If 1% of that supply
were held in bitcoin, dividing
that by 21 million units implies a value of around
Network Congestion
Number of bitcoin transactions waiting to be processed
200,000
150,000
100,000
50,000
0
2017
THE WALL STREET JOURNAL.
Source: Blockchain.info
$38,000 per coin, up from
around $18,500 currently.
The math is rough but it
shows why some sophisticated bitcoin holders think
there is room to keep rallying. According to this reasoning, if 2% of global
money supply is held in bitcoin, the implied valuation
would be $76,000, and so on.
There are two big problems with this argument.
While the blockchain technology underpinning bitcoin
has the potential to make
transactions more seamless
by cutting out intermediaries, bitcoin as currently constructed fails to live up to
this promise. The bitcoin
network can currently handle only a limited number of
transactions per second, and
is being overwhelmed by
traffic. This is leading to delays in settlement times and
high transaction fees.
The second issue is that
while the stock of bitcoin is
capped, the total supply of
all competitor cryptocurrencies is unlimited. Rival coins
that aim to solve for some of
bitcoin’s problems are already taking share.
Banks and other financial
institutions are aware of the
disruptive potential of blockchain technology, and are
working on ways to use it
themselves without tapping
bitcoin or any other cryptocurrency.
Certainly some portion of
global commerce will be settled through blockchain in
the future, but it could be
controlled by a consortium
of banks and government authorities.
That could still leave
room for some transactions
to be settled in cryptocurrencies independent of
banks, but there is no saying
exactly which currencies.
Bets on individual cryptocurrencies, particularly an
early and flawed one, are
still quite speculative and
risky. Bitcoin investors need
to keep that in mind as we
head into 2018.
—Aaron Back
OVERHEARD
Apple Inc. has dramatically
improved supply of its new
iPhone X. Ironically, that may
mean a chillier winter for the
company.
That is the concern raised
by Instinet analyst Jeffrey
Kvaal, who downgraded Apple on Tuesday to a “neutral”
rating.
Noting that shipment
times on the iPhone X are
now just a single day, he
worries that this means less
potential upside to the 79
million iPhone units Wall
Street expects Apple to ship
in the December quarter, as
well as less demand slipping
into the March period, for
which analysts are currently
expecting a 22% year-overyear gain in unit sales.
Over the past five years,
iPhone unit sales in the
March period have averaged
growth of just 9.4%.
With Apple’s stock trading
at a historically high 15 times
forward earnings in anticipation of the iPhone X “supercycle,” it doesn’t take much
for some to find reason to
cycle out.
Steinhoff’s Margin Loan Went Really Wrong for Banks
Collateral Damage
200%
150
100
Value of Steinhoff
International shares
50 versus the loan they
were pledged against
0
2016
’17
Source: FactSet
sure, and BNP Paribas.
The losses may be a small
part of the banks’ overall
businesses, but they look big
enough that for many of the
lenders they could wipe out
all revenue from stock-based
lending this year. It is a business that had been booming
due to the long, low-volatility stock rally and the loans’
light capital requirements.
Regulators assess margin
lending on liquid, public equities as less risky than
mortgages.
This loan was made to a
vehicle controlled by Mr. Wiese in September 2016 to
help him fund a Steinhoff
capital raising needed to pay
for one of its many acquisi-
tions. Mr. Wiese’s vehicles
pledged 628 million shares—
at that point worth €3.175
billion—as collateral against
the loan. In essence, he borrowed against his Steinhoff
shares to buy more Steinhoff
shares.
The losses these lenders
face are so large because the
downfall came so suddenly.
Normally banks can make
margin calls, asking for cash
or more stock, to protect
their position. With Steinhoff, the shares were worth
120% of the loan on Dec. 5
and less than 24% 48 hours
later. They are now valued at
less than 20%.
Lenders have recovered a
fraction of the value by sell-
ing 98 million, or 15%, of the
pledged shares last week.
Banks, which met with management Tuesday, are now
trying to figure how to salvage as much of their investments as possible.
The end could come
quickly. Steinhoff said its
lenders were already freezing or withdrawing credit
lines from its subsidiaries.
This will be a fascinating
game in which each bank has
to judge whether the best
value lies in cooperating
with their client and peers
or acting aggressively to recover what it can quickly.
Right now it is hard to see
the game producing any winners.
—Paul J. Davies
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Lending to the wealthy
against equity holdings is
rated as surprisingly lowrisk by banks. But when it
goes wrong, it goes really
wrong. Just look at scandalhit Steinhoff International.
A €1.6 billion ($1.9 billion)
share-backed loan to Steinhoff’s recently departed
chairman, Christo Wiese, is
so far underwater that the
banks will need a bathysphere to recover any value.
Shares in the global retail
group, which owns the Mattress Firm retail chain and
the Sleepy’s brand, collapsed
suddenly when the company
disclosed accounting irregularities this month.
Citigroup, Goldman
Sachs, HSBC and Nomura
put together the original
loan, but have since sold off
large chunks to several other
banks including Bank of
America Merrill Lynch,
which has the largest expo-
Micron Gives
Relief From
Chip Fears
If nothing else, Micron
Technology’s latest earnings
report should allow nervous
chip investors to enjoy their
holiday in peace.
Fears of a peak in memory-chip prices have been on
the rise. A growing number
of analysts believe prices for
NAND flash memory have already peaked, with DRAM expected to do the same next
year. Memory prices have
buoyed many companies in
the chip sector this year and
driven market values to records. The PHLX Semiconductor Index is up 41% this
year but has slipped nearly
5% since late last month.
Micron’s fiscal first-quarter results Tuesday should
ease some of those worries.
Revenue surged 71% to $6.8
billion, with adjusted pershare earnings hitting a record $2.45. Both were well
ahead of Wall Street’s estimates. More notably, Micron
projected a small sequential
gain in earnings and revenue
for the quarter ending in
February. Analysts had expected both to slip from the
November quarter’s results.
That should ease fears of a
peak. But investors are still
right to pay close attention
to developments. A surge in
capital spending by Samsung
and a large number of government-backed fabs under
construction in China could
boost supply next year, driving prices downward.
That would likely trip up
Micron, which has been the
chip sector’s best-performing
stock this year. But the company’s rapidly expanding
earnings have both moderated its valuation and lifted
its cash flow, allowing it to
expand capital spending and
pay down more debt. That
should keep Micron investors
celebrating into the new
year.
—Dan Gallagher
ly
.
Email: heard@wsj.com
MARKETS
Stocks Slip as Tech Shares Weaken Hack Causes Exchange
BY MICHAEL WURSTHORN
AND DAVID HODARI
Falling Fortunes
Shares of technology companies struggled Tuesday,
dragging on major indexes.
0.3%
S&P 500
Nasdaq Composite
S&P 500 technology
0
–0.6
n-
–0.3
no
Declining shares of technology companies dragged down
major indexes Tuesday, even as
Republicans advanced their
sweeping rewrite of the U.S. tax
code.
After two
TUESDAY’S
consecutive
MARKETS
sessions
of
gains for all
three major indexes, investors
paused Tuesday as House Republicans voted to approve the
latest version of the overhaul as
expected, analysts said. Early
Wednesday, the Senate followed
suit. The bill already has helped
send shares higher in recent
sessions, building on the momentum stocks have enjoyed
from another strong quarter of
earnings and an expanding U.S.
economy.
“The market had a little bit
of excitement” Monday as investors continued to price in
the likelihood of Republicans
completing their tax bill this
year, said Tony Roth, chief investment officer for Wilmington
Trust. “It’s taking a little bit of a
breather as Congress works
through its process and gets the
bill to the president.”
The Dow Jones Industrial
Average shed 37.45 points, or
0.2%, to 24754.75, while the S&P
500 fell 8.69 points, or 0.3%, to
2681.47. The tech-heavy Nasdaq
Composite dropped 30.91
–0.9
9:30 a.m. 10
11
noon
Source: FactSet
points, or 0.4%, to 6963.85.
While analysts say the tax
bill is expected to boost profits among companies that pay
relatively high effective tax
rates, such as retailers, banks
and other firms, tech companies aren’t expected to benefit
as much since they tend to
pay a lower tax bill than other
industries.
Tech companies in the S&P
500 pay an effective tax rate of
about 18%, according to data
from FactSet.
Besides that, some investors
are likely selling some of their
tech holdings to reap year-end
gains, analysts added, and are
1
2
3
THE WALL STREET JOURNAL.
moving that money into sectors
that have underperformed, such
as energy and consumer staples.
“You’re seeing some profittaking from the winners this
year and a rebound among the
losers,” said Rob Haworth, a senior investment strategist at
U.S. Bank Wealth Management.
Chip maker Qualcomm lost
88 cents, or 1.3%, to $64.50,
while Lam Research declined
2.96, or 1.6%, to 186.11. PayPal
Holdings shed 82 cents, or 1.1%,
to 74.50.
Bonds tumbled, and so did
dividend-paying stocks such as
utilities and telecommunications firms in the S&P 500.
That offset gains among consumer staples and energy companies.
CVS Health rose 64 cents, or
0.9%, to 72.31, while Wal-Mart
Stores gained 90 cents, or 0.9%,
to 98.80. Among energy firms,
Marathon Oil added 59 cents,
or 3.8%, to 16.02, and Noble Energy rose 94 cents, or 3.6%, to
27.23.
After the market closed
Tuesday, The Wall Street Journal reported the House would
have to hold another vote
Wednesday to approve the tax
bill to avoid running afoul of
the fast-track procedures that
govern its passage.
“There’ll be some movement
the more likely [the tax plan] becomes,” said Ben Laidler, global
equities strategist at HSBC. “The
S&P’s done well and that tells
you it’s not been priced in yet.
The tax cuts could add 7% to
large-cap earnings, double that
to small-cap earnings.”
European stocks’ early momentum ran out of steam after
most Asia-Pacific indexes closed
higher. The Stoxx Europe 600
fell 0.4%. In Asia, the Shanghai
Composite rose 0.9%, while
Hong Kong’s Hang Seng Index
returned to positive territory
for December, gaining 0.7%.
Japan’s Nikkei fell 0.1%. At midday in Tokyo Wednesday, the
Nikkei was down less than 0.1%,
while the Shanghai Composite
was up less than 0.1%, and the
Hang Seng was flat.
U.S. Government Bonds Extend Slide
BY SAM GOLDFARB
U.S. government bonds
pulled back sharply Tuesday as
Congress neared final passage
of a major tax
CREDIT
overhaul.
MARKETS
After
long
playing
down
the potential impact of a tax overhaul, bond
investors have appeared to reverse course this week, causing them to sell bonds to
guard against the risk of growing debt supply, stronger inflation and a more aggressive
path of interest-rate increases
from the Federal Reserve.
The yield on the benchmark
10-year Treasury note settled
Tuesday at 2.464%, its highest
close since March 20, compared with 2.392% Monday
and 2.353% just two sessions
ago. Yields rise when bond
prices fall.
The tax overhaul poses several risks to investors. The legislation, which is expected to
lower federal revenue by $1.5
trillion over 10 years, could
weigh on the prices of existing
bonds by increasing the supply
of new debt.
The tax bill also could increase economic growth and
inflation, eroding the fixed returns government bonds offer
and making it easier for the
Fed to tighten monetary policy.
Still, many bond investors
have been skeptical that tax
cuts could do much to stoke
inflation, which has remained
stubbornly soft this year.
There has also been uncertainty about how the Treasury
Department will fund its additional borrowing needs, with
some signs that it could spare
long-term bonds by focusing
mostly on short-term debt issuance.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$164,646,163,300
Applications
$50,000,279,900
Accepted bids
$527,001,600
" noncompetitively
$0
" foreign noncompetitively
99.903167
Auction price (rate)
(1.245%)
1.264%
Coupon equivalent
55.60%
Bids at clearing yield accepted
912796NN5
Cusip number
The bills, dated Dec. 21, 2017, mature on Jan. 18, 2018.
To File for Bankruptcy
BY EUN-YOUNG JEONG
AND STEVEN RUSSOLILLO
A cryptocurrency exchange
in South Korea collapsed after
it was hit by a second cyberattack in eight months and lost
a large amount of its digitalcurrency
CURRENCIES
reserves.
Ya p ia n,
the
company that operates a Seoulbased exchange called Youbit,
suspended digital-currency
trading and filed for bankruptcy after its systems were
hacked in the predawn hours
of Tuesday. The exchange
trades 10 virtual currencies,
including
bitcoin
and
ethereum.
Yapian said the latest security breach caused it to lose
17% of its total assets. The
company didn’t specify the
type of virtual currencies that
were stolen or the financial
value of its losses. The previous cyberattack, in April, also
resulted in losses from its reserves.
Users of the exchange with
digital coins in their online accounts were told by Youbit on
Tuesday that they could withdraw about 75% of their cryptocurrency for now. The remaining balances would be
returned after the company
goes through bankruptcy proceedings, it said.
The threat of cyberattacks
is heightening online-security
concerns in the cryptocurrency markets as prices of bitcoin have surged over the past
year and drawn a flood of investors and speculators to digital currency trading, especially in Asia.
After Youbit’s April cyberattack, which resulted in bigger
losses than the latest hack, the
exchange’s operator said it
boosted security measures by
storing more digital coins in
hard wallets that effectively
keep the currency offline, as
opposed to online exchange
accounts. It also made repairs
to its system.
South Korea has recently
become a hotbed for bitcoin
and other cryptocurrency
trading, drawing many young
people and other individual
investors to the market. A
surge in trading volumes and
investor fervor has drawn the
attention of South Korea’s
government, which last week
proposed measures to cool
speculation. Regulators there
also fined BTC Korea.Com
Co., the operator of a cryptocurrency exchange, for compromising the personal information of thousands of its
users after a hack this year.
Separately,
Singapore’s
central bank on Tuesday
warned about the “significant
risks” involved in investing in
digital currencies. The Monetary Authority of Singapore
said speculation has driven
up values and that the risk of
17%
Total assets Yapian said it lost
in Tuesday’s cyberbreach
a significant drop in prices is
high.
Security remains one of the
most critical issues facing the
industry. This month, bitcoin
valued at more than $70 million was stolen from a cryptocurrency-mining service called
NiceHash after a security
breach. The company halted
operations more than a week
ago and has yet to resume.
One cautionary tale is that
of Mt. Gox, once the world’s
largest bitcoin exchange. The
company lost virtual currency
valued at hundreds of millions
of dollars in 2014 and was
forced to file for bankruptcy
protection.
The price of bitcoin has
surged this year. Late Tuesday,
bitcoin was trading at about
$17,345, according to coinmarketcap.com. It started 2017
just below $1,000.
Challengers to bitcoin’s
throne step up........................ B16
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.
B16 | Wednesday, December 20, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Rival Digital Currencies Nip at Bitcoin
Crypto king’s big rise
lures investors to the
arena hoping for same;
a litecoin, anyone?
Cryptocurrencies known as ‘altcoins’ are increasing in popularity as
investors become more comfortable with the notion of digital money.
Top 10 digital currencies by market value, in billions
BY PAUL VIGNA
$307
$81.1
$39.8
$31.5
$19.3
Bitcoin
Ethereum
Bitcoin Cash
Ripple
Litecoin
$14.5
$13.1
$9.4
$8.7
$6.8
Cardano
IOTA
Dash
NEM
EOS
Combined market value of three leading
alternative digital coins as a percentage
of bitcoin’s market value†
Percentage change in market value
over one year*
Ripple
Daily closing price of litecoin
over the past three months
$400
11,951%
Tuesday
$335.68
43%
2017
300
Ethereum
10,075%
9%
2016
ly
.
200
Litecoin
9,458%
7%
2015
Bitcoin
100
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The recent outsize gains in
bitcoin are encouraging investors to migrate to several
other cryptocurrencies.
Alternative versions of bitcoin, known as “altcoins,” have
been rising along with bitcoin
itself. Most prominently, a digital currency called litecoin
surged about 60% on Dec. 13
alone, trading at a record
$341.72, according to coinmarketcap.com.
It began the month at just
$88 and the year at $4.33.
While bitcoin is up more than
1,600% this year, litecoin is up
about 7,000%, according
to coinmarketcap.com. Late
Tuesday, litecoin was trading
at $335.68.
Bitcoin’s gains—it was trading at about $17,345 late Tuesday, according to coinmarketcap.com—has investors willing
to consider anything that
looks like the virtual currency,
said Jimmy Song, a bitcoin developer based in Austin, Texas.
“Retail investors in Korea are
driving a lot of the price,” he
said. “They will buy anything
that looks reasonably cheap.”
Many cryptocurrencies have
been benefiting this year from
a combination of greater recognition in countries such as
Japan and South Korea, rising
interest from institutional investors and Wall Street firms,
and a boom in a new fundraising method called an initial
coin offering, which has attracted more than $4 billion in
capital this year alone.
The universe of cryptocurrencies has a total market
value of about $600 billion.
Bitcoin, at $323 billion, makes
up most of that, but there are
several notable alternatives,
such as ethereum ($71 billion),
2,420%
0
Sept. Oct.
*As of noon Dec. 18 †All years as of Dec. 18
Nov.
Dec.
THE WALL STREET JOURNAL.
Sources: Coinmarketcap.com
Ripple ($29 billion), Bitcoin
Cash ($32 billion) and litecoin
($17.6 billion). Twenty-six of
these currencies have market
values above $1 billion. Before
2017, only bitcoin and
ethereum were at that level.
The gains for bitcoin have
created a situation in which
investors are jumping into any
currency that looks like the
next good bet, which can have
a significant effect on what
are relatively small, thinly
traded markets.
Litecoin, launched in 2011
sure.” He warned that investors shouldn’t expect these
gains to last. “Every crypto
bull run I’ve seen has been followed by a bear cycle,” he
wrote. Mr. Lee couldn’t be
reached to comment.
Bitcoin was released in
2009 by an anonymous creator known as Satoshi Nakamoto. Because bitcoin was created
with
open-source
software, it meant anybody
could copy it and produce a
new version with any tweaks
or changes they wanted. That
malleability is the reason
there are now more than 1,000
of these altcoins.
Analysts say that many of
those tokens have marginal
prospects or are pump-anddump schemes. But the largest
have billion-dollar valuations
and could prove to be viable
bitcoin alternatives.
Mr. Lee is a software engineer who worked at Google
and Coinbase. In October 2011,
he released his version of bitcoin, which he dubbed litecoin.
It tweaked some features of
bitcoin, resulting in a network
with faster settlement times
for transactions and lower
fees. He often would characterize it as the silver to bitcoin’s gold.
Litecoin has been around
long enough, and has enough
developers working on it, that
it appears more stable than
some of the newer currencies.
That development team also
has a reputation for testing
and implementing upgrades
that later show up in bitcoin,
Mr. Song and others said.
Still, it has not been able to
attract as many developers
and businesses to it as bitcoin
has, and that has limited its
appeal somewhat compared
with its larger peers.
While these digital assets
can often move in tandem, the
altcoins can also benefit from
problems with the original. After hitting nearly $20,000 on
Sunday, bitcoin prices fell for
two days.
and the first major alternative
version of bitcoin, is especially
benefiting from bitcoin’s surging popularity. For one thing,
several industry insiders have
noted, Coinbase’s online exchange, GDAX, supports trading of the currency. Because
Coinbase has emerged as the
first service many newcomers
are trying out, they are also
being exposed to litecoin.
Charlie Lee, the currency’s
creator, wrote on Twitter last
week, that litecoin is getting
“so much mainstream expo-
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