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The Wall Street Journal December 21 2017

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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THURSDAY, DECEMBER 21, 2017 ~ VOL. CCLXX NO. 146
* * * * * *
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10-YR. TREAS. g 9/32 , yield 2.497%
HHHH $4.00
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GOLD $1,266.10 À $5.40
EURO $1.1873
YEN 113.39
Tax Vote Seals Victory for Trump
What’s
News
Business & Finance
S
audi Arabia is hunting
for an energy deal in U.S.
shale country, as economic
upheaval pushes it to seek its
first international oil-and-gas
production investments. A1
Rolling Stone’s owner
has sold a controlling
stake to Penske Media. B1
Amazon is trying to use
fewer boxes, responding to
shipping costs and environmental concerns. B3
Apple acknowledged that
its latest software slows
tasks on some older iPhones
to prevent shutdowns. B4
Shell and Eni executives
must stand trial on corruption charges in a Nigerian oil
deal, an Italian judge said. B3
Kuwait is investigating
a military helicopter deal
with Airbus, referring it to
an anticorruption panel. B3
World-Wide
Congress gave final approval to a $1.5 trillion tax
cut, delivering a major victory
for Trump and GOP leaders
after nearly a year in political
control of the capital. A1, A4-5
The U.S. blacklisted
Chechen leader Kadyrov
and four others under a federal law targeting Russian
human-rights abusers. A2
President Donald Trump on Wednesday was joined by dozens of Republicans on the South Lawn of the White House, where they celebrated passage of the tax legislation.
Sweeping package heads to president
WASHINGTON—Congress
gave final approval Wednesday
to a $1.5 trillion tax cut, delivering a major victory for President Donald Trump and GOP
leaders after nearly a year in
political control of the capital.
At the heart of the plan—the
By Michael C. Bender,
Janet Hook
and Richard Rubin
most sweeping since 1986—is a
cut in the corporate tax rate to
21% from 35% that is expected
to provide a stimulus to the
U.S. economy as soon as next
year. The tax plan also cuts individual tax rates and aims to
simplify the tax code by elimi-
Beijing unveiled a blueprint that makes “Xiconomics” the guiding principle
for China’s economy. A6
Saudi Arabia plans to
inject billions of dollars it
recovers from a corruption
probe into its state budget. A7
Drug-overdose deaths
drove a decline in U.S. life
expectancy in 2016 for the
second year in a row. A3
The Pentagon for the
first time detailed the provisions it will use in admitting transgender recruits. A3
Talks over legislation to
legalize “Dreamers” are
gaining steam, but a deal is
unlikely by year’s end. A2
CONTENTS
Business News...... B3
Capital Account.... A4
Crossword.............. A14
Heard on Street.. B11
Life & Arts....... A11-13
Management.......... B6
Markets..................... B11
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News............. A2-5
Weather................... A14
World News. A6-9,18
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
Greg Ip: Highs and lows in
tax-code changes............... A4
New rules force fast
adjustments.......................... A5
Some companies plan to
share the wealth................ A5
nating some deductions, trimming others, and jettisoning a
personal exemption.
Individuals could see the impact as soon as February, White
House officials said. In 2019,
about 48% of households will
receive a tax cut of greater than
$500, according to the nonpartisan Joint Committee on Taxation, though the tax cuts will
Over rounds of golf at President Donald Trump’s club in
northern Virginia in October,
Sen. Lindsey Graham offered a
By Peter Nicholas,
Richard Rubin
and Siobhan Hughes
warning: If the tax plan fails,
the Republicans are “dead” as a
party.
Coming off the collapse of
the party’s effort to overhaul
health-care laws, “the consequences of going 0-for-2,” Mr.
Graham (R., S.C.) said, would be
Venezuela’s Brutal Crackdown
Investors are looking to profit by
buying or betting against the
virtual currency, potentially
increasing bitcoin’s volatility. B1
Regime is accused of executing poor people in the name of fighting crime
The number of
hedge funds
focused on
bitcoin
7
23
8
no
South Korea is investigating North Korea’s possible involvement in a heist
from a bitcoin exchange. A18
The U.S. urged the U.N.
to blacklist 10 ships Washington says violated sanctions against Pyongyang. A18
Overhaul’s Impact
Big Hedge Funds
Chase Bitcoin
Trump threatened to cut
aid to countries that back a
U.N. resolution faulting the
U.S. decision to declare Jerusalem Israel’s capital. A2
The EU triggered a sanctions process against Poland
over judicial overhauls the
bloc calls undemocratic. A8
peter out over time and the
plan’s longer-term implications
for growth remain unclear.
Starting in 2019, the GOP
plan also includes a repeal of
the Affordable Care Act’s mandate that most people get
health insurance or pay a penalty, another GOP priority.
The bill encountered a lastminute hitch that required the
House to revote Wednesday.
And the president’s signing of
the bill may not happen until
January.
One of Mr. Trump’s top economic advisers, Gary Cohn, said
Wednesday the timing of the
bill’s signing depends on the
outcome of separate talks in
Please see TRUMP page A4
A blunt warning over a
game of golf helped
shape a strategy that
mobilized GOP on taxes
2015
Source: HFR
2016
2017
(Through Nov.)
BY JUAN FORERO AND MAOLIS CASTRO
BARLOVENTO, Venezuela—The young men
had already been tortured at an army base
when soldiers piled them into two jeeps and
transported them to a wooded area just outside the Venezuelan capital.
Stumbling in the dark, with T-shirts pulled
over their faces and hands tied behind their
backs, they were steered to an open pit. Soldiers then used machetes to deliver blow after
blow to the base of their necks. Most suffered
gaping wounds that killed them before they
hit the ground.
Others, bleeding profusely but still alive,
crumpled into the shallow grave as their killers piled dirt over their bodies to hide the
crime.
“We think they were alive a good while as
they died from asphyxia,” said Zair Mundaray,
a veteran prosecutor who led the exhumation
and investigation that pieced together how
the killings unfolded. “It had to be a terrible
Saudis Go Shopping
In U.S. Shale Patch
BY SARAH MCFARLANE
AND SUMMER SAID
Saudi Arabia is hunting for
an energy deal in American
shale country, as economic upheaval pushes it to seek its
first international oil-and-gas
production investments.
Saudi Arabian Oil Co.,
known as Aramco, has had initial conversations about taking
a stake in Tellurian Inc., a liquefied-natural-gas developer
based in Houston, or agreeing
to buy some of its fuel in the
future, people familiar with the
matter said. Separately, it has
inquired about acquiring assets in two giant U.S. oil-andgas basins, the Permian and
Eagle Ford, the people said.
The talks haven’t reached
an advanced stage, and the
Saudis have talked to other,
undisclosed U.S. companies
about natural-gas export deals,
the people said.
A representative for Tellurian said: “We cannot com-
thing.”
For Mr. Mundaray and his team of investigators, the massacre in this area east of Caracas in October 2016 was the most bloodthirsty
of killings by security forces in a country
riven by unspeakable violence.
Prosecutors, criminologists and humanrights groups say it was only one of many recurring and escalating lethal attacks carried
out by police or soldiers.
The full scope of the alleged atrocities is
beginning to surface publicly now. Luisa Ortega, a former Socialist Party stalwart who
was attorney general until fleeing to neighboring Colombia in August, is releasing data
on the killings, as are independent humanrights groups and Venezuelan journalists.
Her office recorded the slayings of 8,292
people by the police, the National Guard, the
army and Venezuela’s version of the FBI, from
2015 through the first six months of this year,
she said in an interview with The Wall Street
Please see CRIME page A10
ment on commercial dealings.”
Aramco declined to comment.
Any effort to acquire American oil-and-gas production assets would mark a watershed
moment for Saudi Arabia. It
has been the world’s top exporter of crude oil for decades,
but booming U.S. production
has shaken the kingdom, depressing prices and compelling
the government to rethink its
dependence on revenue from
its massive petroleum reserves.
Using hydraulic fracturing
techniques to unlock oil and
gas from shale formations, the
U.S. has become the world’s
largest producer of oil and gas
combined and is starting to export its energy abundance.
Saudi oil shipments—once the
dominant source of crude for
Please see SHALE page A7
Graft clawbacks earmarked
for Saudi treasury................... A7
China pushes its way into the
oil market.................................. B10
Lost a Pet?
First, Write
An Obit
i
i
i
Once discouraged
by newspapers,
odes bloom online
BY CLARE ANSBERRY
Mikee, a monkey still in his
teens, died unexpectedly of
heart problems this fall in St.
Paul, Minn.
“He was more a family
member than a pet,” said the
obituary, written by Roy Carlson, who got Mikee after raising five children. The remembrance described Mikee’s love
of fresh fruit, the History
Channel and outfits from Under Armour. It also noted his
appearances in local parades.
The monkey’s obit was
posted on Pets Remembered
Cremation, joining 300 other
online memorials, including
ones for Baby Girl, a bearded
Please see OBITS page A10
“just devastating.”
The message stuck. The passage of a tax bill that will touch
virtually every American business and family in many ways
rose from the wreckage of the
GOP effort to repeal parts of
the Affordable Care Act. The
defeat of the health bill hung
over the tax-overhaul effort,
shaping the strategy used to
pass it and mobilizing Republicans eager to show they could
pass legislation.
“The experience on health
care was so miserable and so
jarring and so shocking that
people realized that it couldn’t
happen on taxes,” said Rep. Peter Roskam (R., Ill.).
This account of the tax bill’s
passage is based on interviews
with White House officials,
Please see GOP page A5
Gymnast Sues
Over Abuse
JAE C. HONG/ASSOCIATED PRESS
China is preparing to
launch a yuan-based oil-futures contract, a move that
could shake up the market. B10
ly
.
U.S. stocks eased as investors mulled the tax bill’s
effects. The Dow shed 28.10
points to 24726.65. B10
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Subaru is investigating
whether workers at Japanese factories improperly altered fuel-economy data. B1
n-
Some big-name hedge
funds are considering
whether it is time to wade
into the bitcoin market. B1
Coinbase said it would
probe insider-trading claims
after a surge in a bitcoin offshoot called Bitcoin Cash. B4
CAROLYN KASTER/ASSOCIATED PRESS
Uber was dealt a defeat
as an EU court ruled the
firm should be regulated as
a transportation service. B1
McKayla Maroney’s suit against
Olympic committee reveals she
signed a $1.25 million settlement
with USA Gymnastics. A14
World’s First
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Oracle
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Database
No Human Labor – Half the Cost
No Human Error – 100x More Reliable
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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Thursday, December 21, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Putin Ally Faces Washington Sanctions
Treasury blacklists
Chechen leader under
Magnitsky law that
has angered Russia
Trump May Cut Aid
For Jerusalem Vote
WASHINGTON—President
Donald Trump on Wednesday
threatened to cut American aid
to countries that back a United
Nations resolution faulting the
recent U.S. decision to declare
Jerusalem Israel’s capital.
“We’re watching those
votes,” Mr. Trump said at the
start of a meeting of his cabinet on Wednesday. “Let them
vote against us—we’ll save a
lot. We don’t care.”
The U.N. General Assembly
will meet Thursday in emergency session to vote on a
measure the U.S. blocked earlier this week at the Security
Council, which called on the
Trump administration to reChechen leader Ramzan Kadyrov mocked the U.S. sanctions in a video he posted on Instagram.
U.S. WATCH
PHILANTHROPY
alleged Russian interference in
the 2016 U.S. presidential election have focused, in part, on
Russia’s attempts to undermine or repeal the law.
Several members of President Donald Trump’s campaign
met last year with a Russian
lawyer campaigning against
the Magnitsky Act, believing
the lawyer would deliver damaging information about Democratic presidential candidate
Hillary Clinton.
John Smith, director of the
Treasury’s Office of Foreign
Assets Control, said that his
office remained committed “to
holding accountable those in-
volved in the Sergei Magnitsky
affair, including those with a
role in the criminal conspiracy
and fraud scheme that he uncovered.”
“We will continue to use the
Magnitsky Act to aggressively
target gross violators of human rights in Russia, including
individuals responsible for extrajudicial killings, torture and
other despicable acts,” Mr.
Smith said.
With Wednesday’s designations, 49 individuals have now
been blacklisted under the
Magnitsky Act.
Mr. Kadyrov’s designation
represents a jab at an longtime
ally of Russian President Vladimir Putin. The Russian leader
has given Mr. Kadyrov wide
latitude in his administration
of Chechnya in exchange for
keeping a lid on the unrest in
the troubled region.
The Russian embassy in
Washington didn’t respond to
requests to comment.
Treasury officials said Mr.
Kadyrov oversees an administration involved in disappearances and extrajudicial killings.
“One of Kadyrov’s political opponents was believed to have
been murdered at Kadyrov’s
direction, after making allegations of torture and ill-treat-
ment taking place in Chechnya,
including alleged torture carried out by Kadyrov personally,” the Treasury said.
In addition to Mr. Kadyrov,
the Treasury blacklisted Ayub
Kataev, who it alleged was involved in abuses of gay men in
Chechnya, as well as three others who the Treasury alleged
were involved in the conspiracy uncovered by Mr. Magnitsky.
—Brett Forrest
and Paul Sonne
contributed to this article.
ly
.
tioned me. I feel like, actually I
already am, a great person,
with so many awards from
America.”
The Magnitsky Act, signed
into law in 2012, was named
for Sergei Magnitsky, a lawyer
who died in 2009 while in the
hands of Russian authorities
after making allegations of
fraud by Russian officials.
Some human-rights groups
and U.S. officials see the case
as emblematic of shortcomings
in Russia’s political system and
adherence to rule of law.
Moscow has opposed the
Magnitsky Act since its passage. U.S. investigations into
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The U.S. blacklisted Chechen
leader and Kremlin ally Ramzan Kadyrov and four other
Russians as part of the Trump
administration’s first sanctions
decision under the Magnitsky
Act, a federal law targeting
Russian human-rights abusers.
Wednesday’s move stands
to further strain Washington’s
relations with Moscow, coming
after Russians linked to the
Kremlin lobbied the Trump
presidential campaign last
year to back off Magnitsky Act
sanctions.
The U.S. designation freezes
any of Mr. Kadyrov’s assets under American jurisdiction and
bans him from traveling to the
U.S. The measures also are
likely to make institutions in
other countries wary of engaging with designated individuals.
In response, Mr. Kadyrov
posted a video of himself on
Instagram that showed him
lifting weights as an assistant
informed him he had been
added to the U.S. sanctions
list.
“Those poor Americans.
One small but prideful
Chechen Republic is worrying
such a big government,” Mr.
Kadyrov said. “They’ve sanc-
NATALIA KOLESNIKOVA/AFP/GETTY IMAGES
BY SAMUEL RUBENFELD
AND IAN TALLEY
scind its decision to move the
embassy and recognize Jerusalem as the capital. The measure had the support of all
other members of the Security
Council, including U.S. allies
France and the U.K.
In Thursday’s vote, the U.N.
resolution, sponsored by Egypt,
is expected to pass with a
wide majority of the body’s
196 nations, diplomats say.
U.S. Ambassador to the
U.N. Nikki Haley sent an email
to ambassadors of U.N. member states on Tuesday saying
she would report to Mr. Trump
about any countries voting in
favor of the resolution.
“As you consider your vote,
I want you to know that the
president and the U.S. take
this vote personally,” Ms. Haley
told the diplomats.
—Felicia Schwartz
U.S. says 10 ships violate
North Korea sanctions....... A18
A Governor’s Spouse Takes His Place at the Iowa Statehouse
VIRGINIA
n-
It’s not over yet in the Virginia House of Delegates race
that threatened to strip Republicans of their majority.
A Wednesday decision by a
three-judge panel to count a disputed ballot made the race for a
House seat representing Newport News a tie.
The ruling came a day after
an elections panel had ruled for
the Democratic challenger, Shelly
Simonds, in a recount of the November vote.
State election law requires
that in the event of a tie, the
winner be determined by drawing lots, and elections experts
say that is likely by drawing
from a bowl with names on slips
of paper. A date for the drawing
hasn’t been set yet, according to
a spokeswoman for Republican
incumbent David Yancey.
The matter of the vote is still
with the recount court, Department of Elections Commissioner
Edgardo Cortés said Wednesday.
—Valerie Bauerlein
no
When the John D. and Catherine T. MacArthur Foundation
launched its biggest giveaway
ever, the Chicago-based philanthropy left it up to the recipient
to decide what problem to solve
and how to tackle it.
After sifting through 1,900
proposals over the past year, the
foundation on Wednesday
awarded $100 million to Sesame
Workshop and the International
Rescue Committee. The two
teamed up with a plan to use
the Muppets to bring educational services to millions of children affected by the Syrian refugee crisis.
Sesame will produce 200 programs in Arabic and Iraqi Kurdish over the next five years. It
will also provide its characters
and education materials to an
on-the-ground program led by
the refugee organization.
MacArthur plans to give
away another $100 million in
three years.
—Joe Barrett
NEWEST ADDITION: Gov. Kim Reynolds, Iowa’s first female governor, looks at a doll of her husband, Kevin, in a ‘first lady’ display case.
CORRECTIONS AMPLIFICATIONS
The Republican tax bill
will allow homeowners to deduct interest on the first
$750,000 of a new mortgage,
regardless of size. In some
editions Wednesday, a U.S.
News article about the tax
bill incorrectly said it will cap
the mortgage-interest deduction at $750,000. In other editions, the article incorrectly
said the plan will allow homeowners to deduct interest on
mortgages of up to $750,000.
Jones Lang LaSalle Inc.
manages malls for clients. A
Business News article on
Wednesday about Wausau,
Wis., incorrectly said the
company owns malls.
Traditional money-transfer specialists offer digital
transfers, including apps. A
Business & Finance article
Wednesday about fintech
startups failed to make clear
that customers of the traditional companies don’t have
to visit an outlet to transfer
money.
Ilya Gofshteyn is a strategist at Standard Chartered
Bank. A Money & Investing
article on Wednesday about
Tuesday’s trading in the U.S.
dollar incorrectly said he is
with Crédit Agricole.
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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Muppets Get Gift for House Race Is Tied
Refugee Education
After Court Ruling
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Immigration Deal Is
Unlikely by Year’s End
BY LAURA MECKLER
AND KRISTINA PETERSON
WASHINGTON—Bipartisan
talks over legislation to legalize
young undocumented immigrants are gaining steam, key
senators said, but top Democrats who have pushed for
quick action said any fix won’t
happen by year’s end.
The immigration debate is
one of many matters involved
in year-end talks over a bill to
keep the government funded.
While most lawmakers have
said they expect Congress will
end up passing a bill to provide
funding through Jan. 19, some
House Republicans on Wednesday night raised objections that
the bill wouldn’t fund the military for the full year.
Government funding expires
at 12:01 a.m. Saturday.
Republicans have long said
immigration should be dealt
with outside of the funding
bills, and this week Sen. Jeff
Flake (R., Ariz.) said he had secured a promise for a Senate
floor vote in January on
Dreamers legislation being negotiated by a bipartisan group
of senators. GOP leaders confirmed that plan.
“If negotiators reach an
agreement on these matters by
the end of January, I will bring
it to the Senate floor for a freestanding vote,” Senate Majority
Leader Mitch McConnell (R.,
Ky.) said in a statement.
Mr. Flake said the negotia-
tors were moving closer to an
agreement that would legalize
young people living in the U.S.
illegally who were brought here
as children, though the scope
of who would be covered is still
being negotiated, he said.
President Donald Trump in
September ended the Deferred
Action for Childhood Arrivals
program, or DACA, that protected them, but gave Congress
six months to pass legislation
before protections begin to expire.
Mr. Flake and another negotiator, Sen. James Lankford (R.,
Okla.) said the talks have centered on including border-security measures and something
addressing “chain migration,”
or the ability of citizens to
sponsor family members for
green cards.
Mr. Flake said that negotiators are discussing limiting the
ability of the Dreamers—whom
the bill would legalize—to
sponsor future immigrants. Mr.
Lankford said that was one option, but he cautioned they
can’t give one set of citizens
rights that others don’t enjoy.
Both senators said they expect
provisions endorsing some
measure of fencing on the
southwest border, something
Democrats have so far opposed.
But Mr. Flake said other
Trump priorities, such as eliminating the diversity visa lottery
and making changes to the asylum system, aren’t likely to be
included.
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.
Thursday, December 21, 2017 | A3
* *
JARED SOARES FOR THE WALL STREET JOURNAL
U.S. NEWS
Police in Baltimore responding to an overdose call earlier this year. U.S. deaths from drug overdoses surged 21% in 2016.
BY JEANNE WHALEN
Drug-overdose deaths drove
a decline in U.S. life expectancy
in 2016 for the second year in a
row—the first consecutive-year
fall since the early 1960s.
Deaths from drug overdoses
surged 21% to more than 63,600
in 2016, spurred by widespread
black-market availability of
deadly synthetic opioids including fentanyl, according to the
Centers for Disease Control and
Prevention.
Those deaths were the main
factor causing life expectancy
for Americans born in 2016 to
fall to 78.6 years, from 78.7 and
78.9 in the two previous years,
CDC officials said.
The last time the U.S. experienced a back-to-back fall in life
expectancy, in 1962 and 1963, a
bad flu season was to blame,
Bob Anderson, chief of mortality statistics at CDC’s National
Center for Health Statistics,
said.
“This whole decrease in life
expectancy can be put clearly at
the foot of the opioid epidemic,”
Brenda Fitzgerald, director of
the CDC, said. “We need as a
country to have a really
thoughtful all-out effort to eliminate this problem.”
For many years falling death
rates from cardiovascular disease helped offset the rise in
drug-related deaths, which have
been growing along with opioid
addiction since the late 1990s.
But progress in preventing cardiovascular death has stalled.
An increase in death rates
for younger Americans—particularly those 15 to 44—helped
drive life expectancy down, with
drug overdoses contributing
heavily to those deaths, Dr. Anderson said.
Longevity Dip
U.S. life expectancy fell two years in a row in 2015 and 2016. The last
time that happened was 1962 and 1963. Life expectancy at birth:
80 years
78
76
74
72
70
68
66
1950
’60
’70
’80
’90
Source: Centers for Disease Control and Prevention
2000
’10
THE WALL STREET JOURNAL.
Locals Had Misgivings
About New Rail Route
no
LAKEWOOD, Wash.—Patrons at Galloping Gertie’s Bar
and Grill devised an emergency plan in 2013 when they
learned that passenger trains
would one day be barreling
down the track 50 feet from
Gertie’s back door.
In the event of a crash, a
regular named Carol was to
jump up from the bar and yell
“Everybody out!” and customers would “run like hell”
across the street to the 7Eleven, Gertie’s proprietor Susan Rothwell wrote in a
monthly newsletter at the
time.
The gallows humor reflected the anxiety about the
new railroad bypass many
here said would be unsafe and
cause traffic congestion. On
Monday, their worst fears
were realized on the train’s inaugural bypass run: It derailed, killing three people and
injuring more than 70.
“You take an 80-mile-perhour train through a community instead of vacant land and
you don’t think there’ll be a
wreck?” Ms. Rothwell, 69 years
old, said Tuesday.
The crash, which took place
8 miles from Gertie’s, is reviving debate about the new rail
line, mirroring tensions across
the West as states seek to expand passenger-train systems.
As in Washington state,
such battles set locals opposed
to rail cutting through their
communities against public-
n-
BY ZUSHA ELINSON
Drug deaths also boosted
“unintentional injuries” into
the No. 3 slot for causes of
death, from No. 4 in 2015.
Heart disease and cancer
ranked first and second. Unintentional injuries also include
car crashes and accidental firearm deaths.
Joshua Sharfstein, director
of the Bloomberg American
Health Initiative at Johns Hopkins University, said several
factors are hampering the response to the addiction crisis,
including stigma against using
medication to treat opioid addiction. “What I would hope is
that the shock of these statistics helps shake people from
their preconceptions and allows them to focus on developing a path that follows the evidence,” Dr. Sharfstein said.
In November, a presidential
commission published 56 recommendations for tackling the
crisis, including setting up
more drug courts to steer addicts who commit nonviolent
crimes into treatment rather
than prison, and increasing
oversight of health-insurance
plans to ensure they follow requirements to cover substanceabuse treatment as they would
treatment for other illnesses.
co Fo
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Drug-overdose deaths
surge, particularly for
younger people, as the
opioid crisis persists
ly
.
U.S. Lifespans Fall Again
Bypass tracks where
train derailed had
been subject of
criticism, lawsuit.
ELAINE THOMPSON/ASSOCIATED PRESS
transit proponents who see rail
expansion as central to alleviating traffic, reducing pollution
and lifting economies.
The new route helped
add two more daily trips between Seattle and Portland,
Ore., increase reliability, and
shave about 10 minutes off the
travel time, said Janet Matkin,
a spokeswoman for the Wash-
Workers at the site of Monday’s train derailment near DuPont,
Wash., checked an engine as it was readied to be taken away.
ington state Transportation
Department.
The $181 million bypass
project was funded by Obama
administration
stimulus
money. The new route took a
shortcut to avoid a curving
section of track that hugs
Puget Sound and is heavily
trafficked by freight trains.
Bypass opponents argued
that a train coming through 14
times a day would create
safety hazards for pedestrians
and cars. Others said the opposition was simply a matter of
“not in my backyard.”
Don Anderson, the mayor of
Lakewood, filed a lawsuit in
2013 to block the project, arguing there weren’t enough
safety precautions in place at
the new, street-level railroad
crossings in his city of 60,000.
Nearby DuPont, where the derailment occurred, joined the
suit. The complaint was dismissed in 2014.
Mike Courts, mayor of DuPont, population 9,400, said
the “main concern was a quiet
train, running at nearly 80
miles an hour at grade through
congested areas.”
To address concerns about
safety,
the
state
installed new railroad crossing
gates and barriers to block
cars from going around them,
Ms. Matkin said.
The state is also planning
on building vehicle overpasses
at some crossings so that
trains and cars won’t come
into contact, she added.
The owners and patrons of
Gertie’s remain opposed.
“The town was angry” their
concerns “were pooh-poohed,”
Ms. Rothwell said of the decision to move ahead with the
bypass. “But you don’t beat
the IRS and you don’t beat the
railway.”
—Ted Mann
contributed to this article.
Pentagon
Sets Plans
For Trans
Recruits
BY NANCY A. YOUSSEF
WASHINGTON—The Pentagon for the first time has detailed the provisions it will use
in admitting transgender recruits, issuing a memorandum
that encompasses medical exams, room assignments and
how the military will determine someone’s gender.
The memorandum envisions
a Jan. 1 start for the process of
admitting transgender recruits, in line with court rulings that have rejected President Donald Trump’s move to
ban military service by transgender individuals.
The memo, dated Dec. 8 and
released this week as part of
court filings, states that incoming service members will
be recognized by their preferred gender, even if they haven’t completed the necessary
medical procedures. Service
members who don’t specify a
preferred gender are to be
listed by the military by the
gender listed on their birth
certificate.
Mr. Trump in a July 26
Twitter post declared that
transgender service members
wouldn’t be allowed to serve
“in any capacity,” out of national security concerns, but
his order has been challenged
in several lawsuits.
A federal judge this month
ordered that transgender recruits be allowed to join beginning Jan. 1. The Justice Department has appealed.
The memorandum was included in court documents
filed Tuesday by opponents of
the Trump ban, intended to
show the military was prepared to begin admitting
transgender recruits.
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 | Thursday, December 21, 2017
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THE WALL STREET JOURNAL.
TAX OVERHAUL
CAPITAL ACCOUNT | By Greg Ip
Bill Fixes Some Problems, Exacerbates Others
Globally Competitive, at What Cost?
The tax bill brings the U.S. corporate rate in line with the world
but at a steep future cost.
Statutory corporate
income tax rates
U.S.
France
After cut
before
25.8%
38.9%
34.4
Germany
Australia
Japan
Italy
Canada
Netherlands
Spain
South Korea
Switzerland
U.K.
Ireland
Forecast U.S. debt/GDP
30.2
30.0
30.0
27.8
26.7
25.0
25.0
24.2
21.1
19.0
12.5
Without tax cut
‘True cost’ of tax cut*
True cost w/ ‘dynamic scoring’†
100%
95
90
85
80
75
70
2017
’19
’21
’23
’25
’27
*Assumes expiring tax cuts are extended and projected tax increases are delayed
†Incorporates revenue from higher growth
Sources: OECD (2017 combined central and subnational rates);
THE WALL STREET JOURNAL.
Committee for a Responsible Federal Budget
qualify. Howard Gleckman, an
analyst at the Tax Policy Center, says of the 10 most costly
tax breaks in the current code,
nine remain in place, such as
for employer health insurance,
retirement savings and capital
gains. Only the state and local
tax deduction is significantly
curtailed, largely because the
cost is borne disproportionately by taxpayers in Democratic-leaning states.
After proposing to roll back
several popular tax breaks including for medical expenses,
student loan interest, even the
deduction for teachers’ out-ofpocket spending on school
supplies, legislators retreated.
Some distortionary business
breaks, such as for oil-and-gas
drilling, electric cars and renewable energy, remain. Even
the “carried interest” loophole
for hedge fund profits largely
survives.
And new breaks are cre-
ated, most important a 20%
deduction for businesses that
pay taxes as individuals (such
as sole proprietors and partnerships). This is ostensibly to
level the playing field with the
lower corporate rate, but as a
result it unlevels the playing
field between employees and
the self-employed who do the
same work. Alan Auerbach, an
economist at the University of
California at Berkeley, says
whatever the benefits of the
lower “pass-through” rate,
they are offset by the “grave
complexity” it introduces. The
different rates create huge incentives for tax avoidance.
The failure to eliminate tax
breaks leads to the next big
problem. Mr. Auerbach said
other countries pay for lower
corporate rates by raising or
introducing new taxes, such as
a value added tax. Republicans originally had planned
something similar: a cash flow
tax that exempted exports and
penalized imports. But the
idea died in the face of opposition by businesses such as
retailers as well as Mr. Trump.
Rather than raise personal
taxes such as on the wealthy,
who as shareholders benefit
most from the corporate rate
cut, the plan lowers them and
the lost revenue is covered by
borrowing.
As Federal Reserve Chairwoman Janet Yellen noted last
week, this makes a bad debt
situation worse. The national
debt, instead of rising to 91%
of gross domestic product in
2027 from 77% now, soars to
100% if the cost-cutting gimmicks (such as tax-cut expirations that aren’t meant to occur) are ignored, according
the Committee for a Responsible Federal Budget.
R
epublicans had always
said, with some justification, that the soaring
costs of entitlements such as
Medicare, Medicaid and Social
Security were too steep to fix
with higher taxes alone. But
by cutting taxes, they have
made the challenge of constraining entitlements far
steeper.
Which leads to the final
problem—the process. By
passing their tax bill along
party lines, Republicans have
alienated Democrats they may
need to address these challenges. Such a rush job could
require a new bill to fix
emerging problems, but Republicans may struggle to find
enough Democrats for the
necessary 60 Senate votes. Indeed Vermont Senator Bernie
Sanders, a former Democratic
candidate for president, said
this past Sunday that if Democrats retake Congress, they
will try to raise corporate
taxes again.
ly
.
H
ere are the bill’s high
and low points.
The High:
In the past 30 years almost
every other rich country except the U.S. has cut its corporate tax rate to attract investment. That differential
spurred tax avoidance by multinational companies, robbing
the Treasury of revenue and
the economy of investment.
Even Democrats agreed this
wasn’t sustainable.
That has been fixed. The
federal rate drops to 21% from
35%. The combined federal-
state rate goes from highest
among 35 members of the Organization for Economic Cooperation and Development to
roughly in the middle. For five
years, businesses will be able
to write off capital equipment
immediately instead of depreciating it over several years.
This should boost investment and growth, and also
spur companies to locate their
offices and plants where they
make economic, rather than
tax, sense.
For individuals, the plan
takes a few steps toward reducing distortions. It caps the
tax break for state and local
taxes and further limits the
deduction for mortgage interest, both of which mainly benefited the affluent. A higher
standard deduction and more
generous child tax credit funnels more of the benefits of
remaining tax breaks toward
lower- and middle-income
families while eliminating incentives to borrow and pay
more for houses or live in
high-tax areas. The alternative
minimum tax on individuals, a
capricious parallel tax, is
modified so only 200,000
households will pay it instead
of 4.4 million, according to
the Tax Policy Center.
The Low:
If tax reform means paying
for lower rates by eliminating
tax breaks, this plan doesn’t
co Fo
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For tax reform, it’s the
beginning, not
the end.
Economists
across the political spectrum have long
agreed that the U.S. tax system was globally uncompetitive, tilted against investment,
riddled with distortionary tax
breaks, and incapable of financing the country’s fiscal
promises.
The package that Congress
passed and President Donald
Trump will soon sign bears
only limited resemblance to
the reform most economists
envisioned. It fixes some of
these problems but makes
others worse, which will
force legislators to return to
the table in coming years.
Overhaul Could Curb Appeal of Homeownership
BY LAURA KUSISTO
The tax-code overhaul
wipes out decades-old perks
designed to encourage homeownership, which housing analysts expect will reduce the
incentives for millions of
Americans to own property
and will curb the growth of
home prices.
By almost doubling the
standard deductions for indi-
vidual and joint tax filers, the
law blunts the advantage of
the mortgage-interest deduction, which is often a key factor in home-buying decisions,
particularly in pricey markets.
The legislation also caps
the deduction for state and local taxes at $10,000, a hammer
blow to homeowners in hightax states.
Taken together, the changes
significantly diminish the
perks of homeownership built
into the tax code.
“There’s really no difference between owning and
renting in the tax code anymore for most Americans,”
said Ed Mills, a policy analyst
at financial-services firm Raymond James & Associates.
At peak impact, U.S. home
prices will 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.
Similarly, in pricier markets
in states such New Jersey,
New York, Illinois and Pennsylvania, prices could be as
much as 10% lower, according
to Moody’s.
At least 23 million fewer
Americans will be incentivized
to own a home under the new
rules, according to homesearch 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.
The National Association of
Realtors, one of the largest
and wealthiest lobby groups in
the U.S., lobbied vigorously
and unsuccessfully against the
changes.
But it was hard to argue
against what likely would
amount to a tax break for
many Americans.
“When you increase the
standard deduction, many,
many fewer taxpayers are going to itemize, and the ones
that do are only going to be
the very wealthy,” said Jerry
Howard, chief executive of the
National Association of Home
Builders.
Continued from Page One
Congress about a governmentspending measure.
On Wednesday afternoon,
the president and congressional
leaders celebrated the tax
plan’s clearance through Congress at a gathering on the
South Lawn of the White
House. Earlier, surrounded by
his cabinet in the Cabinet
Room, Mr. Trump previewed
some of his likely pitch to voters, predicting that financial
markets would surge following
passage of the legislation.
“I don’t think the market has
even begun to realize how good
these are,” Mr. Trump said. In
recent months, the GOP president has touted stock-market
gains as a reason to support
the tax bill.
Mr. Trump described the
package as providing “a tremendous amount of relief for
the middle class.”
“It’s really, above all else, it’s
a jobs bill,” he said.
Democrats said the tax plan
doesn’t provide enough direct
relief to the middle class and
warned of health premium increases and future spending
cuts. They pointed to an analysis from the Joint Committee
on Taxation that shows less
than 25% of individual tax cuts
will go to the middle class, and
those breaks expire after 2025.
“Tax breaks do not lead to
job creation,” said Sen. Chuck
Schumer of New York, the
chamber’s Democratic leader,
after the vote. “They lead to big
CEO salaries and money for the
very, very wealthy.”
Republicans counter that the
corporate tax break and other
changes to the tax code for corporate shareholders and business owners will benefit many
in the middle class, too.
Business groups lauded the
plan’s anticipated impact on
economic growth and investment. AT&T Inc. said it would
make a one-time $1,000 payment to more than 200,000
workers once Mr. Trump signs
the bill.
Polls suggest many people
aren’t convinced of the bill’s
benefits. Nearly two-thirds of
people said they believe the
package was designed mostly
to help corporations and the
wealthy, and 24% said the bill
was a good idea, according to a
MARK WILSON/GETTY IMAGES
no
n-
TRUMP
House Speaker Paul Ryan (R., Wis.), at the Capitol on Wednesday.
Wall Street Journal/NBC News
poll this month.
Passage of the bill sets the
stage for a hectic period early
next year, when employers
change withholding in paychecks, and businesses and individuals must reconsider myriad financial decisions.
Companies, for instance, will
have to evaluate their debt levels, given new limits on the deduction of interest payments,
and executives will consider
whether to bring back money
Mr. Trump has
touted stock-market
gains as a reason to
support the tax bill
stockpiled overseas. Home buyers will have to consider
whether to take out mortgages
exceeding
$750,000,
the
amount above which interest is
no longer deductible.
In Washington, political
strategists have begun looking
to the tax plan’s impact on the
midterm elections next year.
“All of our fate in 2018 is
largely tied to the selling of the
tax reform plan,” said Corry
Bliss, executive director of the
American Action Network, a
Republican group that spent
$24 million since August promoting the tax changes in competitive House districts. “The
No. 1 thing for the midterms:
We have to convince people we
can govern and can do things
that help their everyday lives.”
The party of the sitting president has traditionally fared
poorly in midterms two years
after an election. Democrats
have said they have electoral
momentum after recent statewide victories in Virginia, Alabama and New Jersey.
Mr. Trump’s own approval
ratings also remain near historic lows for a first-year president. But, with congressional
approval ratings in the doldrums, GOP lawmakers expect
Mr. Trump to take a starring
role in the effort to persuade
voters of the tax plan’s benefits,
especially to the middle class.
Democrats said they would
make the tax bill an issue in the
midterms, in part by targeting
voters in the suburbs, where
the party found success in recent statewide races.
Bill McInturff, a Republican
pollster, said the tax bill probably won’t immediately improve
his party’s political standing.
Instead, he said, market gains
and a declining unemployment
rate give “some potential hope”
for Republicans.
But Senate Majority Leader
Mitch McConnell (R., Ky.) said
he believes the bill is a simple
sell for his party.
“If we can’t sell this to the
American people,” he said, “we
ought to go into another line of
work.”
—Kristina Peterson
and Siobhan Hughes
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.
Thursday, December 21, 2017 | A5
TAX OVERHAUL
Changes Force
Fast Adjustments
GOP
PATRICK T. FALLON/BLOOMBERG NEWS
Firms Plan to Share Wealth
BY THEO FRANCIS
President Donald Trump
hasn’t yet signed the tax overhaul that promises to slash
corporate taxes, but several
big U.S. companies raced
Wednesday to tout plans to
dole out some of the expected
windfall.
AT&T Inc. and Comcast
Corp. said they will pay a
$1,000 bonus to most of their
U.S. workers—more than
300,000 people combined—
once the president signs the
legislation. Wells Fargo & Co.
and Fifth Third Bancorp said
they will raise their minimum
wage to $15 an hour.
The moves came within
hours of a final vote in the
House to adopt the legisla-
tion, which would reduce the
corporate tax rate to 21%
from 35% and make other
sweeping changes expected to
cost $1.5 trillion over the next
decade. The Senate passed
the bill a day earlier, and Mr.
Trump is expected to sign it,
though perhaps not until
early January.
Telecoms and banks are
among those expected to get a
huge boost from the overhaul
since most of their operations
are domestic and they pay
higher effective rates than internet or pharmaceutical
firms that have intellectual
property or operations outside the country.
In a statement, AT&T CEO
Randall Stephenson was effusive in his praise for the bill,
saying Congress and Mr.
Trump “took a monumental
step” to align U.S. taxes with
those of other industrialized
countries.
A few weeks ago, Mr. Stephenson was sparring with
the Trump administration after the Justice Department
filed an antitrust lawsuit to
block AT&T’s takeover of
Time
Warner
Inc.
He
broached the question of
whether the White House
meddled in the process and
said he didn’t know the answer. The Justice Department
said there was no political interference.
Mr. Trump, in celebrating
the bill’s passage in Congress
in a White House event, highlighted AT&T’s pledge to give
bonuses and increase spending. “That’s because of what
we did, so that’s pretty good,”
he said.
The mutual admiration
comes after a year in which
the relationship between the
White House and U.S. business leaders has often proved
tumultuous. Two CEO advisory panels disbanded this
year after members began announcing they would leave the
bodies in protest of Mr.
Mitch McConnell had
little room for error,
with all Senate
Democrats opposed.
room to go. The rate we ended
up with at 21% had a lot to do
with the president driving everyone down as low as we
could get.”
It was nearly Halloween
when Sen. Tom Cotton (R.,
Ark.) threw out an unexpected
idea. He called for using the bill
to eliminate a pillar of former
President Barack Obama’s Affordable Care Act—the requirement that people get health insurance or pay a fine.
Mr. Trump’s response to the
idea: “I love it.”
Senate Majority Leader
Mitch McConnell (R., Ky.) was
skeptical after suffering an embarrassing defeat on a “skinny”
repeal of the ACA. He backed
the policy but wanted to make
sure it didn’t cost votes.
The move did threaten to
drive off Sen. Susan Collins of
Maine, who worried that eliminating the individual mandate
would roil insurance markets.
Ms. Collins was one of the Republican no votes on the
health-care repeal bill.
Ivanka Trump, the president’s daughter and adviser,
flew to Maine on Nov. 10 and
Ms. Collins met her at the airport. Ms. Trump had sat out
the health-care fight, not wanting to push for a bill she didn’t
support, a person familiar with
the matter said. But she liked
the tax plan.
Ms. Trump and Ms. Collins
spoke privately in an airport
conference room about the senator’s concerns, and then they
drove together to a forum on
taxes. The following week, the
president, his daughter, Ms.
Collins, Mr. Graham and others
met in the Oval Office.
Ms. Collins subsequently
voted for the bill, having been
assured that subsidy payments
to insurers would help stabilize
the markets. She also was able
to preserve some tax deductions and protect a retirementcontribution break. It’s unclear
whether she will get everything
she sought, but her aides said
those concessions were key to
winning her vote.
Sen. Bob Corker (R., Tenn.)
was another wild card.
He voted against the tax bill
on Dec. 2 when it first moved
through the chamber. Two days
later, he attended a dinner at
Ms. Trump’s home.
Mr. Corker, who had called
the White House an “adult daycare center” during an October
Twitter spat with the president,
was concerned about ballooning deficits. Ms. Trump countered that the tax bill, coupled
with reduced regulations,
would lift the U.S. economy.
Even though the bill didn’t
change to meet his preferences,
Mr. Corker voted for it.
Sen. Ron Johnson (R., Wis.)
was stewing because GOP leaders weren’t listening to his concerns that corporations would
receive a larger share of the tax
cuts than pass-through businesses, which pass their profits
along to owners who pay taxes
at individual rates.
Mr. Johnson ultimately
achieved the biggest victory by
a single senator outside of the
Finance Committee: $114 billion
in additional tax cuts for passthrough businesses.
Trump’s response to a white
supremacist
march
that
turned deadly in Charlottesville, Va.
But American companies
stand to benefit from the Republican tax overhaul as well
as extensive efforts to cut
back regulations across industries—initiatives that executives have sought to support
even as they sometimes kept
their distance from the president in public.
In announcing its bonus,
Comcast cited both the tax
cut and the Federal Communications Commission’s recent
decision to roll back net neutrality regulations.
Economists and some policy makers have questioned
the degree to which companies will use the savings from
the tax bill to invest in the
U.S. or create jobs, as opposed
to buying back shares or paying dividends to shareholders.
—Drew FitzGerald
contributed to this article.
ly
.
AT&T, Comcast to give
staffers bonus; Wells
Fargo, Fifth Third to
lift minimum wage
For months, the White
House was willing to accept a
corporate tax rate between 20%
and 23%. But in the days before
Republicans released their tax
blueprint in late September, Mr.
Trump said it needed to be 15%,
a Republican congressional aide
said. The president then moved
to 18%, and Mr. Ryan called him
to say that was impossible. Mr.
Trump agreed to 20%. It would
later be set at 21%.
“There were a lot of people
who never thought we could
get it down to 25%,” Mr.
Mnuchin said Tuesday. “Starting at 15%, he had negotiating
no
Continued from Page One
presidential advisers, lawmakers and congressional aides.
Congressional leaders set
weekly deadlines and hit nearly
all of them in a seven-week
rush from introducing a bill to
finishing it. They kept Mr.
Trump and his aides involved,
but at a distance.
What Mr. Trump did well,
said Sen. Pat Toomey (R., Pa.),
was to put stakes in the ground
for a much lower corporate tax
rate and a middle-class tax cut
and leave the rest to Congress.
“He was very good on this,”
said House Speaker Paul Ryan
(R., Wis.). “He just realized being more disciplined and letting
the tax writers get this deal
done was the best way to go.”
GOP lawmakers had little
room for error. For the bill to
pass the Senate, they could afford no more than two defections, assuming all Democrats
voted no—which they did.
The White House tried to
pick off a few Democratic votes,
but the effort went nowhere.
That was partly because GOP
negotiators were already deep
in the process of cutting deals
to get their own members on
the same page, and had concluded the price most Democrats were asking would alter
the bill too much from what
Republicans sought.
Beginning in the spring,
Treasury Secretary Steven
Mnuchin, White House economic adviser Gary Cohn,
House Ways and Means Chairman Kevin Brady (R., Texas)
and three other Republican
congressional leaders took part
in what became known as “Big
Six” conclaves that sought to
iron out differences.
An early first task was to remove the border-adjustment
provision that Mr. Brady and
Mr. Ryan had insisted on, which
would have raised $1 trillion by
taxing imports and exempting
exports.
Republican lawmakers said
they had a better partner in Mr.
Trump for the tax bill than in
the health-care effort, where
the White House didn’t articulate what it wanted. As a realestate magnate, Mr. Trump had
a good grasp of taxes.
But getting him to stick to
certain positions wasn’t always
easy.
An AT&T store in California. CEO Randall Stephenson praised the bill as aligning U.S. taxes with those of other industrialized nations.
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ers and outside experts time to
interpret the laws and offer
guidance.
In this case, the law puts
most of the new tax rules in
place starting Jan. 1, giving the
Treasury Department and Internal Revenue Service scant
time over a holiday period to
interpret the law and provide
advice.
Complicating matters, it is
uncertain when President Donald Trump will sign the legislation. He may wait until after
the new year to avoid mandatory spending cuts associated
with the tax bill and budget
rules. The timing of his signature affects how businesses
will account for some of the
tax code changes.
All this could leave taxpayers and their advisers struggling to adapt, raising the risk
of errors and disruptions, tax
policy experts warn.
The bill, which Congress
passed Wednesday, provides
deep tax cuts for corporations
and lower rates for many individuals. It also includes a significant overhaul of business
taxation and international tax
rules, and scales back key tax
breaks.
co Fo
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Experts warn of
errors and disruption
as taxpayers, firms
decipher new code.
MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
The extensive rewrite of the
U.S. tax code leaves little time
for government agencies, businesses and individuals to adjust to its wide-ranging
changes, many of which take
effect in a matter of days.
Major pieces of legislation,
such as the Affordable Care
Act and Dodd-Frank financial
overhaul, often aren’t effective
immediately, giving rule writ-
“I don’t think anyone probably has thought through all the
different administrative ramifications of the bill,” said Bryan
Camp, a law professor at Texas
Tech’s School of Law and former lawyer in the IRS chief
counsel’s office.
The American Payroll Association, the largest payroll-industry trade group, warned
lawmakers in a letter that its
members were starting to
panic over the prospect of
changes to the W-4 form,
which employers use to determine how much tax to withhold from paychecks.
Millions of employees could
need to file new W-4 forms,
but it isn’t clear when new
ones will be ready.
Gary Cohn, director of the
White House National Economic Council, said Wednesday Mr. Trump may wait until
early next year to sign the legislation if lawmakers don’t
separately pass a provision to
waive certain budget rules related to it. That wouldn’t affect
the rollout of new withholding
tables, but would have significant consequences for many
businesses.
If the president signs the
bill before the end of December, companies on a calendaryear schedule would have to
reflect much of the effect in
their fourth-quarter financial
statements, which many begin
releasing between mid and late
January. If the law isn’t signed
until January, however, businesses generally wouldn’t have
to reflect the effects in their financial reports until spring.
Not all business groups are
concerned.
“Yes, there are going to be
growing pains in the short
term, but to get a pro-growth
tax code that looks more like
our global competitors is
worth it,” said Caroline Harris,
vice president of tax policy at
the U.S. Chamber of Commerce.
—Theo Francis
contributed to this article.
n-
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A6 | Thursday, December 21, 2017
THE WALL STREET JOURNAL.
NY
WORLD NEWS
Japan Fortifies Islands Near China Beijing
Blueprint
Tokyo rethinks strict
pacifism, plans new
military installations in
southwestern territory
Favors
Growth
BY LINGLING WEI
ISHIGAKI, Japan—Japan’s
military is laying the groundwork for batteries of antiship
and antiaircraft missiles in a
quiet, sugar-cane-filled valley
here, as it girds to confront
what Tokyo views as its greatest long-term threat: China.
Ishigaki is one of a string of
subtropical islands in the far
southwest of the Japanese archipelago—the closest is about
200 miles from China—that
defense officials are fortifying
with troop garrisons, weapons
and a radar installation.
As China becomes more
powerful and assertive and
North Korea builds its nuclear
arsenal, Japan is rethinking its
approach to defense and moving away from the policies of
strict pacifism it has followed
since its defeat in World War II.
On Friday, Prime Minister
Shinzo Abe’s cabinet is set to
approve an increase of around
2.5% in annual military spending, including funds for the
new facilities, as well as
Japan’s first cruise missiles and
a new ballistic-missile defense
shield. Defense Minister Itsunori Onodera said the cruise
missiles are intended to protect
the islands from invasion.
The budget has been growing since 2013, with Japan, one
of the U.S.’s most important allies, buying advanced jet fighters, boosting surveillance capabilities and training a new
amphibious troop unit.
The country still spends
around half of that spent by
China and one-third of the U.S.
on defense relative to the size
of each country’s economy.
But, with the support—and
prodding—of Washington, it is
building one of the world’s
most capable armed forces.
Ishigaki and neighboring is-
BEIJING—China made “Xiconomics” the guiding principle for the world’s secondlargest economy as it unveiled
the first economic blueprint of
President Xi Jinping’s second
term.
The plan came with strong
political overtones, highlighting a theory bearing Mr. Xi’s
name and emphasizing innovation and “high-quality”
growth.
There were few signs Beijing will aggressively tackle
crippling debt levels and statesector bloat. Also missing in
the blueprint were plans for a
long-awaited property tax.
Instead, the plan released
late Wednesday after a Communist Party economic conference rattled off a list of promises China has made in the
past few years but that haven’t
been fully delivered on, such
as risk control, overcapacity
cuts and broadening market
access to foreign companies.
It also talked up poverty alleviation and pollution control,
which are among the political
initiatives championed by Mr.
Xi, as key economic tasks for
next year.
Many investors and analysts inside and outside China
had hoped that Mr. Xi, who in
his second term has been
granted greater powers than
any Chinese leader in decades,
would use his new clout to
push through decisive measures to put the economy on
sounder footing.
“The biggest surprise is that
there is no mention of deleveraging” as a main policy objective, said Larry Hu, Hong
Kong-based China economist at
Macquarie Group. “The tone of
the whole plan is centered on
keeping the economy stable.”
JIJI PRESS/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY ALASTAIR GALE
Japan deployed Patriot interceptor launchers at Ishigaki in February 2016, part of an expanded military presence in the area.
RUSSIA
300 km
KURIL
ISLANDS
JAPAN
N. KOREA
Beijing
Tokyo
S. KOREA
CHINA
RYUKYU
ISLANDS
SENKAKU
ISLANDS*
comment on Japan’s fortification of the southern islands,
the Chinese Foreign Ministry
said: “Due to historical reasons, Japan’s military and security policies receive a high
level of concern from Asian
neighbors and the international community. We hope
that Japan will adhere to the
path of peaceful development
and refrain from doing anything that would damage regional peace and stability.”
For decades, the only major
military presence in the area
has been U.S. bases on Okinawa, where about half of the
50,000 American troops in
Japan are stationed.
Mr. Abe has argued Japan
should do more to defend itself
and reduce its dependency on
the U.S.. Part of that process is
to amend the nation’s pacifist
constitution to formally recognize Japan’s right to have a
military, Mr. Abe says.
It remains unclear whether
Mr. Abe’s desire for a change
in the constitution would win
the necessary majority backing
in parliament and then a national referendum. Many Japanese identify the peaceful
postwar period with its constitution, opinion polls show.
In the meantime, Mr. Abe’s
government argues the acquisition of military hardware and
construction of bases is constitutional because it is for defense. Plans for the expanded
footprint on Ishigaki have divided the island’s population
of some 50,000 and prompted
protests. Anti-base activist
Shizuo Ota says a base would
make the island a target in any
future conflict. “We’d be wiped
out in an instant,” he says.
But Ishigaki’s mayor, Yoshitaka Nakayama, is a strong
supporter. He has set a deadline of March, when he faces
re-election, to pass a motion in
the local assembly in support
of the base construction.
—Chieko Tsuneoka
contributed to this article.
ly
.
300 miles
co Fo
m rp
m e
er rs
ci on
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e
on
lands are part of what China’s
military calls the “first island
chain,” a series of archipelagoes around China’s perimeter
stretching from Russia’s Kurils
to the South China Sea, where
Beijing seeks naval dominance.
Authorities on Ishigaki have
jurisdiction over a nearby
group of tiny, uninhabited islands that Japan calls the Senkakus. They are also claimed
by China and Taiwan. Their
Chinese name is Diaoyu.
In recent years China has
sent larger coast guard ships,
some armed, to circle the islands. A fleet of 10 Japanese
coast guard ships based in Ishigaki regularly plays cat-andmouse with the Chinese vessels.
Rear Adm. Atsushi Tohyama,
commander of the Ishigaki
coast guard base, said Japanese ships make radio contact
with Chinese boats to avoid
clashes. “The Chinese ships are
getting bigger and more modern. In that sense, they are escalating the situation,” he said.
ISHIGAKI
TA I WA N
PHILIPPINES
Pacific
O cean
*Administered by Japan, claimed by China
and Taiwan; they're called Diaoyu in Chinese
THE WALL STREET JOURNAL.
n-
A spokesman for the Japanese army, known as the
Ground Self-Defense Force,
said the military aims to deploy 500 to 600 soldiers to
Ishigaki to man the missiles.
In response to a request to
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THE WALL STREET JOURNAL.
Thursday, December 21, 2017 | A6A
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A6B | Thursday, December 21, 2017
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THE WALL STREET JOURNAL.
Thursday, December 21, 2017 | A7
WORLD NEWS
SHALE
BY ASA FITCH
Energy minister Khalid al-Falih said Aramco is more interested in importing gas from closer areas.
Power Mix
Saudi Arabia still generates
much of its electricity by burning
crude oil and oil products.
Share of electricity generation
by source
Diesel
8.6%
Heavy fuel oil
16.5%
Crude oil
24.2%
Natural gas
50.7%
Martin Houston and Charif
Souki, former chief executive
of Cheniere Energy Inc., the
first U.S. company to build a
sizable LNG export project.
Tellurian also has natural-gas
production and undeveloped
shale acreage.
Nasdaq-listed Tellurian’s
shares rose 2.7% on Wednesday after the news was published.
Saudi Arabia’s gas reserves
are hard to extract and high in
sulfur content, which increases
processing costs. So even
though it has almost as much
gas as the U.S. under the
ground—about 4.5% of the
world’s reserves, according to
BP—it isn’t a significant gas
producer.
Importing LNG so far hasn’t
made economic sense for
Saudi Arabia. The kingdom
subsidizes electricity costs for
consumers, so the costs of infrastructure and shipping LNG
add to its price and make it
less attractive than just burning its large reserves of oil.
The calculation has begun
to change as the kingdom prepares the Aramco IPO. In the
long term, the increased revenue from additional oil exports
could outweigh the initial costs
involved in adding LNG to its
energy mix.
co Fo
m rp
m e
er rs
ci on
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us l,
e
on
Vladimir Putin also has
pressed Saudi officials to invest in Russian gas.
But the people familiar with
the matter said Saudi officials
have held wide-ranging talks
with oil-and-gas producers in
the U.S. shale patch this year.
By investing in shale production, Saudi Arabia could
gain a better understanding of
the U.S. oil-and-gas industry.
Shale companies don’t invest
in long-term projects that produce for decades like Saudi
Arabia does, but rather pump
in quick spurts that can be
ratcheted down when prices
fall or ramped up when they
rise.
Other Middle Eastern petrostates are trying to learn
more about shale. Earlier this
year, Abu Dhabi’s sovereign
fund Mubadala made a small
investment with private equity
in U.S. shale. “The objective is
to understand the dynamics of
this business, the technical
side and the financial side—in
particular the cost,” said Musabbeh Al Kaabi, chief executive
of Mubadala’s petroleum and
petrochemicals business.
The Saudis have been engaged in a global search for
natural-gas partners as the
kingdom’s energy officials push
to make the fuel a larger part
RIYADH, Saudi Arabia—The
kingdom plans to inject billions of dollars it recovers
from a sweeping corruption
probe into its state budget, its
finance minister said, as it
rolls out an expensive plan to
reshape its oil-dependent
economy.
Saudi officials have suggested
corruption
cases
against hundreds of wealthy
princes, top officials and businessmen in recent months
could net at least $100 billion,
although some people familiar
with the matter have said recoveries could be far higher.
“Whatever is going to be
recovered will go to the treasury because it was taken
from the treasury,” Mohammed al-Jadaan said in an interview Tuesday with The
Wall Street Journal, though he
gave no specifics. “And then it
will be used obviously in the
years to come, whatever is
coming, as part of the budget
allocation.”
The crackdown is widely
perceived in a positive light
within Saudi Arabia, where
many people chafe at what
they see as rampant graft
within a class of wealthy
elites. Moves like the inquiry
have helped to burnish the
popular image of Crown Prince
Mohammed bin Salman as a
champion of fairness, despite
the fact that he and his father
preside over an opaque, monarchical political system.
Significant recoveries could
support costly economic reforms spearheaded by Prince
Mohammed, which include
tens of billions of dollars in
stimulus for the private sector
and allowances for less-welloff Saudi families as part of a
grand plan to wean the country off oil revenues while easing the pain of the transition
Source: Saudi Arabia's Electricity and
Cogeneration Regulatory Authority
THE WALL STREET JOURNAL.
of their mix for producing electricity, some of which is generated by burning crude oil.
Tellurian is known for its
plans to export American liquefied natural gas via a terminal in Louisiana, expected to
be finished by 2022. LNG is a
super-chilled fuel that can be
shipped around the world like
crude oil.
Tellurian was co-founded by
former BG Group executive
for ordinary Saudi citizens.
The recovered funds could
give a boost to education and
health-care spending, Mr.
Jadaan said.
Last month dozens of members of the royal house, government ministers and prominent
businessmen
were
rounded up and detained in
connection with the investigation into corruption at the
highest levels of Saudi society.
Several of those detained
were released last month, including the politically influential Prince Miteb bin Abdullah,
a sign that some of the accused may be reaching settlements with the government.
Among the people caught
up in the crackdown are
Prince al-Waleed bin Talal, a
multibillionaire investor in
Twitter, Lyft and Citigroup,
Recovered funds
could be used to boost
schooling and healthcare spending.
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.
ESSAM AL-SUDANI/REUTERS
Continued from Page One
America—in September hit
their lowest levels to the U.S.
in 30 years.
“From a historical standpoint, it’s striking,” said Jason
Bordoff, director of Columbia
University’s Center on Global
Energy Policy. It is “a reminder of how dramatic the
impact of the shale revolution
has been,” he said.
The changes have helped
accelerate a transformation in
Saudi society orchestrated by
32-year-old Crown Prince Mohammed bin Salman.
Since Prince Mohammed
took over as heir apparent this
year, the kingdom has unveiled
plans to allow women to drive,
lifted a ban on movie theaters
and initiated a corruption
crackdown that has consolidated his power. He also
launched the kingdom’s effort
to publicly list part of Aramco
next year, providing billions to
fund an economic shift away
from oil dependence.
The talks with American energy companies come as SaudiU.S. relations have improved,
with President Donald Trump
touting Saudi Arabia as a crucial ally in containing Iran. U.S.
Energy Secretary Rick Perry
said he spoke with Prince Mohammed about U.S. LNG exports during a recent visit to
the kingdom.
Aramco owns refineries
around the world, including in
the U.S., but doesn’t produce
any oil and gas outside Saudi
Arabia’s borders. The kingdom
doesn’t import any natural gas
or crude oil.
Producing and exporting
American gas would diversify
Aramco, which could be attractive to investors ahead of
the company’s IPO. Saudi officials have said Aramco would
make international investments in producing assets after the IPO.
Saudi energy minister Khalid al-Falih told reporters earlier this month that Aramco
was more interested in importing natural gas from areas
closer to the kingdom, such as
the Mediterranean Sea and
East Africa. Russian President
Graft Clawbacks
Earmarked for
Saudi Treasury
and Bakr bin Laden, the chairman of the Jeddah-based
Saudi Binladin Group, one of
the kingdom’s largest construction companies. Representatives of the men didn’t
return requests to comment.
Mr. Jadaan cautioned that
the corruption probe was still
in its early stages, and it
wasn’t clear when recoveries
would start flowing into the
state treasury.
The country on Tuesday unveiled spending of $260 billion
in next year’s government
budget, including $10.7 billion
allocated to an allowance for
poorer households, $51 billion
to education and $39 billion to
health and social development.
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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.
THE WALL STREET JOURNAL.
* *
THE WALL STREET JOURNAL.
Thursday, December 21, 2017 | A9
**
WORLD NEWS
WORLD NEWS
Ultimate Sanction
Punishes Breach
Of Basic Values
The EU’s executive body on
Wednesday triggered a neverused sanctions procedure
known as Article 7 and informally dubbed the “nuclear option,” taking an unprecedented
step aimed at bringing Poland
back into line.
However, the move risks
alienating Warsaw even further from its European counterparts while exposing the
EU’s weakness in enforcing its
political vision.
The final stage of sanctions—including a suspension
of Polish voting rights in the
EU—would likely be vetoed by
at least one other member. Still,
Poland faces the stigma of being deemed in breach of EU values by a majority of its peers.
The European Commission
and an international panel of
constitutional-law
experts,
known as the Venice Commission, have said changes to Poland’s judicial system are a
CZAREK SOKOLOWSKI/ASSOCIATED PRESS
By Valentina Pop in
Brussels and Drew
Hinshaw in Warsaw
Article 7 of the European
Union spells out how sanctions
can be imposed on a member
country in breach of the bloc’s
fundamental values—human
rights, democracy and the rule
of law.
The ultimate sanction is
the suspension of the country’s
voting rights in the EU.
This provision first entered
into force in 2009, after a
failed attempt in 2000 to
punish Austria with diplomatic
sanctions for forming a government with a far-right
party.
Considerations about former communist countries having joined the bloc in 2004 and
potentially backsliding in their
young democracies also played
a role.
After the European Commission triggers the article, 22
out of the 27 nations (Poland
excluded) have to vote on
whether there is a risk of a serious and persistent breach of
EU values.
Before the vote, Poland has
the opportunity to defend itself.
In a second stage, all 27
nations have to agree that
there is a persistent breach of
EU values.
Hungary has said it would
stop the process at this stage.
If Hungary went ahead, in
the final stage, 18 of the 27
voting nations would be
needed to determine what
sanctions to impose on Poland.
—Valentina Pop
sovereignty and the idea of
United Europe can be reconciled.”
The sanctions procedure
comes as the EU is beginning
more complex negotiations
with the U.K. about its future
relationship after the U.K.
leaves the bloc.
In Warsaw, ruling-party lawmakers described the commis-
sion’s move as a plot to force
Poland to take Muslim refugees. Others said the opposition was working with German
interests to subjugate Poles.
Mr. Timmermans said if Poland over the next three months
reverses the legislative changes,
the commission will withdraw
its recommendation to trigger
the sanctions procedure.
Polish President Andrzej Duda signed two controversial judicial overhauls into law on Wednesday.
threat to Poland’s rule of law
and the separation of powers.
The commission’s decision
comes after two years of failed
attempts by Brussels to persuade the government in Warsaw to undo the changes to its
judicial system.
“Today in Poland, the constitutionality of legislation can
no longer be guaranteed,” said
Frans Timmermans, vice president of the European Commission, adding that this is a risk
for the functioning of the
bloc’s internal market and the
EU as a whole.
The Polish government has
maintained the changes are
needed to purge judges appointed during the country’s
Communist past.
In a defiant move late
Wednesday, Polish President
Andrzej Duda signed two of the
latest controversial overhauls
into law. He said these changes
would “deepen the democratic
accountability of the judiciary.”
Earlier in the day, Prime
Minister Mateusz Morawiecki
struck a more conciliatory
tone, tweeting that “Poland’s
Sexual Misconduct Allegations Sweep Through British Parliament
Westminster, putting new
pressure on the government
and forcing Parliament to
grapple with decades of pentup frustration by women who
feel their complaints haven’t
been heard.
“Views that men might
have thought were acceptable
six months ago even are now
no longer considered acceptable,” Ms. Onwurah said.
In October, a spreadsheet of
allegations circulated among
Conservative aides and journalists describing unsubstantiated allegations of misconduct
The institution is
overhauling the way
it handles reported
sexual harassment.
against 36 Conservative lawmakers—from newcomers to
several ministers. Once it
started getting around, more
accusations spilled out.
The political fallout has
been swift. Prime Minister
Theresa May, who is governing
without a parliamentary majority, has already lost two key
allies. Michael Fallon resigned
in November from his post as
defense secretary, saying his
behavior had fallen below military standards. Mr. Fallon, who
has retained his seat in Parliament, was accused of touching
a radio presenter’s knee at a
dinner in 2002, an incident for
which he apologized at the
time, his spokesman said.
On Wednesday, one of Mrs.
May’s most senior cabinet
ministers, Damian Green, re-
signed after a parliamentary
investigation found he made
misleading statements about
pornography found on his office computer.
Mr. Green denied downloading or viewing indecent
material, but admitted he
hadn’t been clear when he said
he wasn’t aware police had
found the material in a 2008
investigation.
Parliament says it is overhauling its policy for handling
reports of sexual harassment
and is expected to lay out its
new proposals Thursday.
BAGHDAD—Iraqi Shiite militias that helped Baghdad
oust Islamic State—some of
which are loyal to Iran—now
want to translate battlefield
gains into greater political
power in parliamentary elections scheduled for spring.
Several powerful paramilitary groups have pledged over
the past two weeks to surrender control of their arms and
fighters to the Iraqi government. Iraqi law forbids militia
members from engaging in political activity.
“Now we do politics,” said
Naim al-Aboudi, a spokesman
for one of the militias, Asaib
Ahl al-Haq, which is backed by
Iran. “Dissolving the military
wing is a step to preserve and
protect the clout of the government and security forces.”
Iran and its allies, including
some Iraqi militias, are emerging as among the biggest vic-
Iraqi militias advanced toward the town of Tal Afar in August during the fight against Islamic State.
posed to answer to the state.
The force became a legal branch
of the security apparatus in
2016. In practice, however, factions of the force are often loyal
to their respective commanders.
“The problem is not that
there are militias as such, but
there are divided loyalties,” said
Renad Mansour, a research fel-
low at Chatham House. “When
convenient, they may be loyal.
But when not convenient, they
could turn against the state.”
The militias are now seek-
ing to politically challenge Mr.
Abadi, who is backed by the
U.S. in his bid for re-election.
The largest bloc in parliament
nominates the prime minister.
Mr. Abadi is seeking to curb
the militias’ influence in politics. But his options are limited, especially when it comes
to the older, more powerful
militias, many of which have
close ties with Iran.
“There’s no putting the
Hashd back in its box,” said Michael Knights, a fellow at the
Washington Institute for Near
East Studies. “It’s such a slippery, ephemeral thing that trying to keep the Hashd out of
politics is basically impossible.”
The overwhelming majority
of Sunnis in areas that fell to
Islamic State welcomed the
militants’ expulsion at almost
any cost. But some are unnerved by the Shiite militias’
growing power.
Many are skeptical of the
militias’ intentions, despite recent vows by commanders to
disown their armed followers.
“We consider it a tactic to win
the coming elections,” said
Ahmed al-Masari, a senior
Sunni lawmaker.
—Ghassan Adnan
contributed to this article.
WORLDWATCH
SOUTH AFRICA
Land Policy Muddies
Job for ANC Chief
just backed legal changes to allow the government to take land
from white farmers and other
owners and redistribute it to
black South Africans without
compensation. The new party
leader, who was picked Monday
to succeed President Jacob Zuma
as party chief, stressed that land
expropriations must not hurt the
economy, agricultural production
and food security.
“We are going to make
sure…that we will manage the
process of implementing that
policy with due care in the interest of our people as a whole,”
Mr. Ramaphosa said, adding that
“South Africa belongs to all of
us, black and white.”
—Gabriele Steinhauser
A decision by the African National Congress to push for the
expropriation of land without compensation complicates the task
ahead for the party’s new leader.
In his first address as ANC
chief, Cyril Ramaphosa looked to
balance his agenda of boosting
growth and job creation with his
party’s demands for more aggressive action to redistribute
wealth, much of which is in the
hands of the white minority.
Mr. Ramaphosa acknowledged
that the ANC, which holds an absolute majority in parliament, had
UGANDA
Legislators Clear Way
For Longer Presidency
Lawmakers passed a constitutional amendment that would
allow Uganda’s 73-year-old president to stay in power until 2035,
a move that cements the rule of
a Western ally.
Yoweri Museveni has been in
charge of this East African nation, which has helped fight al
Qaeda-affiliated militants in Somalia, since 1986.
A constitutional clause capping a presidential candidate’s
age at 75 would have required
Mr. Museveni, a former rebel
leader, to step down after elec-
tions in 2021.
Wednesday’s vote to remove
the age limit and extend presidential terms to seven years
from five instead clears the way
for Mr. Museveni to potentially
stay in office until he is 91.
The vote followed days of
heated parliamentary proceedings marred by brawls, media
bans and raucous street protests in the capital Kampala.
“This is nothing more than a
coronation,” said Robert Kyagulanyi, an opposition lawmaker
whose no vote failed in the face
of the 67% parliamentary majority of Mr. Museveni’s National
Resistance Movement. “It’s a reality we have to live with now.”
—Nicholas Bariyo
Uganda’s President Yoweri Museveni, arriving at a 2016 election
rally in Kampala, has been cleared to stay in power until 2035.
no
n
LONDON—One young aide
described fending off a lawmaker’s groping after a night
of drinking at the Sports and
Social Club in the basement of
the House of Lords. Another
described being backed into a
corner at the same dingy bar.
After Chi Onwurah, a British
lawmaker with the opposition
Labour Party, heard the stories
she reported them informally
to a Parliament official in September. She said the official,
whom she declined to name,
merely shrugged. “This
sort of thing happens at
pubs up and down the country,” he told the lawmaker, according to her account.
That exchange occurred less
than four months ago, but in
what now seems like another
era. Since sexual misconduct allegations broke in early
October about Hollywood producer Harvey Weinstein—who
has apologized but denied any
nonconsensual sex—a wave of
allegations ranging from inappropriate behavior to rape
have reverberated around
BY ISABEL COLES
AND ALI A. NABHAN
tors of the war against the
Sunni extremists of Islamic
State. The U.S., which has long
vied with Tehran for influence
in Iraq, has pressured the Iraqi
government to limit the role of
Iran-backed militias. Iraq and
Iran are both majority Shiite.
The predominantly Shiite
militias mobilized to fight Islamic State when Iraqi security forces partially collapsed
during the extremist group’s
2014 blitz across the north of
the country. But some militias
at times acted independently
of state authority during the
course of the war.
Iraqi security forces regrouped with support from a
U.S.-led coalition, and Iraqi
Prime Minister Haider al-Abadi,
who is Shiite, sought to sideline the militias, some of which
were accused of abuses against
Sunnis in territory they helped
to recapture from Islamic State.
The militias—known collectively as the Hashd al-Shaabi,
or
Popular
Mobilization
Forces—nevertheless gained
strength, capturing territory
and becoming revered among
many Iraqis. They now have
about 140,000 members.
On paper, the Popular Mobilization Forces are already sup-
-c F
om or
p
m e
er rs
ci on
al a
us l,
e
on
BY JENNY GROSS
Many Iraqi paramilitary
groups that helped
oust the extremists
have close ties to Iran
AHMAD AL-RUBAYE/AGENCE FRANCE-PRESSE/GETTY IMAGES
The European Union raised
the stakes against Poland over
judicial overhauls Brussels
calls undemocratic, laying the
groundwork for an unprecedented punishment after
months of acrimony.
After ISIS Fight, Militias Pursue Politics
ly
.
EU Triggers ‘Nuclear Option’ on Poland
BEN CURTIS/ASSOCIATED PRESS
A8 | Thursday, December 21, 2017
This is who we are.
And you watched in record numbers. A remarkable year in news was met head-on by a remarkable team of journalists, propelling MSNBC to its best year ever. MSNBC beat CNN outright, had more
daytime growth than CNN and Fox News combined, and featured the fastest growing primetime line-up in ALL of television. Thanks to our viewers for recognizing the sharp journalism and clear
context required by an unprecedented era of news.
Source: Nielsen; 12/26/16-12/15/17 vs. prior year, P2+, M-Su 6A-6A, M-F 9A-5P, M-F 8-11P
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Thursday, December 21, 2017
THE WALL STREET JOURNAL.
* *
the Operation to Liberate and
Protect the People, or OLP. The
stated goal, using various police
and military units at once to
flood neighborhoods, was to defend citizens from foreign criminals and gunmen, though the
government never offered evidence of such a threat.
To blame the slayings on
“resistance against authorities,” the police alter crime
scenes and incidence reports to
make it appear as if officers
were in danger, say investigators on Ortega’s team, criminologists and relatives of the dead.
Mr. Mundaray says he has
personally examined bodies
and repeatedly seen direct,
clean shots to the heart and
upper chest at straight angles,
which he says clash with reports describing wild gunfights.
“It’s always a shot to the
chest, perpendicular, in and
out, upper torso,” he said.
“That doesn’t happen in confrontations. Statistically, that
Body Count
Extrajudicial killings by
Venezuela’s security forces
3,000
2,500
n-
2,000
1,000
500
0
2012 ’13
’14
’15
no
1,500
’16 ’17*
*First three months of the year.
Source: Families of Victims Committee
(Cofavic)
THE WALL STREET JOURNAL.
OBITS
Continued from Page One
dragon lizard who loved
strawberry smoothies; Joey, a
14-year-old Chihuahua with a
patient disposition; and Sabrina, the cat who greeted her
owner at the door each night.
When newspapers ruled the
roost, pet obituaries were reserved for famous pets or pets
belonging to famous people. In
1931, the New York Times ran
an obituary for Igloo, a white
and black fox terrier that accompanied Adm. Richard Byrd
to the North Pole.
These days, social media
and online pet memorials provide a place to share memories and photos of any beloved
creature. Family friends leave
messages, and even strangers
browsing the sites often offer
condolences.
“It helps the grieving process,” said Skip Wyland, a licensed funeral director who
started Pets Remembered in
2011 after losing his own dog.
His company, which also provides cremations for pets,
doesn’t charge for posting
obits and doesn’t edit them,
doesn’t happen.”
Elibeth Pulido said that’s exactly what happened to her
son, a 27-year-old electrician
named Jose Daniel Bruzual. On
Aug. 22, a swarm of officers
who said they were searching
for kidnappers stormed into
her home, according to people
in the neighborhood.
Two witnesses told the
Journal they heard Mr. Bruzual
yelling repeatedly, “Call my
mom, they want to kill me!”
The victim suffered one shot
to the upper chest, a death certificate shows. Mr. Bruzual’s
body was rolled in a bed sheet
and carried out of the house.
Bullets pockmarked walls inside and outside Ms. Pulido’s
small home, pointing to a
shootout. The police said a gun
was recovered. Ms. Pulido said
it was planted, and that her son
wasn’t a criminal.
The targets of the crackdown are often in hotbeds of
government support, like the
23 of January neighborhood,
which is near the presidential
palace and was raided in October 2016.
Rossinis del Valle, a 40-yearold mother of six, said officers
barged through the fence of her
home and front door, hauling
out her husband, her brother
and a friend with their T-shirts
over their heads. Officers shot
and killed all three, she and
other relatives said.
“All these cases are the
same—it’s the same modus
operandi—and they don’t care
if they have a criminal record
or not,” said Ms. del Valle, who
said her relatives weren’t involved in criminal activities.
“They don’t kill people in rich
neighborhoods. They kill people in barrios.”
Not far from her home, 25year-old Yanderson Granados
was picked up in the same
sweep, according to his family
and police reports. A wellknown community leader was a
witness, describing in an interview how security forces
dressed in black led Mr. Granados into an alley between two
buildings. Shots were fired, and
his lifeless body was then carried out.
“Everyone here knows,” said
the witness.
As in other cases reviewed
by the Journal, the slayings in
the 23 of January neighbor-
hood had similarities with
other operations by security
forces. The targets were shot at
close range and in direct angles
in the chest or abdomen, the
Journal review showed. Witnesses describe security forces
clad in skull masks. Bullet-holes
peppered walls and buildings.
The dead were discovered
by their families in a public
hospital, their clothes discarded and their bodies naked.
Human-rights investigators say
stripping bodies of clothing is a
common way to obscure the
fact that a gun was fired at
close range.
In an address on the day of
those killings, Interior and Justice Minister Nestor Reverol
announced that 19 people had
been killed in confrontations
with security forces in what he
called a “new phase” of operations launched in 23 of January
and other districts.
Policemen who have participated in the operations say
only an iron hand can bring
control to unruly barrios. “For
them, we’re a trophy—to kill a
policeman is to get a trophy,”
said one officer.
Sitting in a hotel restaurant
in Caracas before a plateful of
eggs, the policeman, a veteran
of Caracas’s meanest streets,
said to surprise criminals the
police plan to strike operations
swiftly, at 4 a.m., when those
being targeted are still asleep.
“Imagine the danger,” he said.
“We can’t wait for an arrest
warrant.”
The number of police officers slain is high for a country
of Venezuela’s size, with at
least 1,700 officers killed from
2012 through 2016, according
to data compiled by Keymer
Ávila, a criminologist who studies civilian killings by police
and the killing of officers. In
the U.S., which has 10 times
Venezuela’s population, 62 officers were shot dead in 2016,
the FBI said, with another four
on-duty officers killed.
Mr. Ávila and other leading
criminologists here argue the
circumstances related to the
deaths of many police officers
suggest that the security forces
are engaged in criminal activity
themselves, not that they are
under siege.
Mr. Ávila’s 2016 study of police slayings in Caracas showed
that seven of 10 policemen
killed were off-duty. He found
more than half were related to
some sort of criminal activity
on the part of the officer. Mr.
Ávila also found that 31% of the
killings were carried out by
other officers. Only 7.1% were
clearly killed in the line of duty,
he found.
With nowhere else to go to
complain, hundreds of families
of those killed by security
forces for months flooded the
offices of opposition congresswoman Delsa Solórzano. She
headed a special committee
that held hearings in which
people from the barrios spoke
about what had happened to
their loved ones.
“Everyone started to come,”
said Ms. Solórzano, whose office collects police reports,
death certificates and other official documentation of lethal
government operations. “Sadly,
these things don’t surprise us,”
she said.
The most notorious case in
Venezuela, first reported in detail by a team of reporters
from the Caracas news website
Runrunes, involved the deaths
of 13 young men here in Barlovento, 10 of whom were killed
with machetes and buried in a
mass grave. Another two were
shot, one was tortured to
death, and five remain missing.
It began when security
forces believed there was “a
growing conspiracy against the
Bolivarian government,” according to an army document
viewed by the Journal.
“The final desired result is
that the groups that generate
violence be neutralized as fast
as possible,” said the document, which is marked secret.
Carmen Cordero’s son,
Eliezer Ramirez, 22, was at
home in Barlovento on leave
from the merchant marine
when he was detained in army
sweeps on Oct. 16 of last year
along with dozens of others.
Prosecutors who later investigated the case and two of the
men detained told the Journal
the entire group was taken to
an army base, where they were
beaten with helmets and fists.
Soldiers demanded to know
about a local gangster.
“We asked for water,” one
young man said, “and they put
a gun in my mouth.”
Only after one of the soldiers was interrogated and
told investigators what had
transpired was the crime uncovered; several soldiers have
been charged and are awaiting
trial.
Ms. Cordero now spends
her free time making sure the
grave where her son is buried
is well-kept and asking herself
how this tragedy could befall
her family.
“I always say the government has a lot to do with
this—they didn’t catch a single
criminal,” she said. “What we
ask ourselves is, ‘Why? Why
would they do this?’ ”
blanket and stroking his head
when they put him down,” Mr.
Baker wrote. “I tried to say
goodbye…but he was too far
gone. Now I’m grieving the
loss of the cat we rescued
from the snow nearly 20 years
ago.”
Longtime friends sent condolences and shared similar
losses. “The more people who
hear about Joey, the better,”
Mr. Baker said.
About 3,000 dog obituaries
are posted on the website
Doggy Heaven, along with
10,000 photos and 25,000
comments, said Steve Cencula,
who created the site for an
aunt who loved dogs. After she
died, he took over.
There is one for Penny
Lane, a Dachshund who
watched Hallmark movies with
her owner and would scratch
the refrigerator to beg for carrots. Merlin, a 15-year-old
Shih-poo nicknamed Beast,
would ride with the owner’s
friend on a scooter, traveling
in a special sack and wearing
“doggles,” the obit said.
Doggy Heaven allows visitors to post digital icons under
the pet’s name, including chew
toys, steaks, bacon and dog
bones. “You wouldn’t believe
how many people come back
every day and leave a token,”
said Mr. Cencula, who owns a
website-development firm.
Online pet obituaries provide a service that newspapers
had long tried to avoid. Jane
Desmond recalled when the
obituary of Bear, a 13-year-old
black Labrador retriever, ran
alongside a woman’s obit in
their hometown paper. The
woman’s sister-in-law wrote
the Iowa City Press-Citizen,
demanding an apology. “There
was a huge backlash,” said Dr.
Desmond, a professor of anthropology at University of Illinois Urbana-Champaign, who
wrote “Animal Deaths and the
Written Record of History: The
Politics of Pet Obituaries.”
James Hughey, owner of
Jacksonville Pet Funeral Home
and Pet Crematory in Florida,
was rebuffed by a local newspaper when he suggested a
death-notice section for pets.
“They wanted nothing to do
with it,” he said.
He created a page on his
company website called Pet
Memory Lane, dedicated to his
late dog, Griffin. For $35, pet
owners are allowed to post a
photo, birth and death dates,
as well as seven to 10 sentences of recollections. Mostly
it’s dogs, but there was a new
obit this week for Iroh Frazier,
a goose that sometimes wore a
blue tie. Her owners picked
out a $700 pink Cloisonné urn
for her ashes.
Pet owners usually write
the obituaries, but some seek
outside help. Katharine Lowrie, of Redondo Beach, Calif., a
former newspaper reporter,
charges $50 to $100 to write
pet obits. Clients fill out a pet
questionnaire covering talents,
favorite foods, bad habits and
whether the pets were introverts or extroverts. She also
writes people obits but
charges more.
Ms. Lowrie wrote the obituary of Pumpkin, a hound who
visited elderly residents in
nursing homes, and one for
Tonto, a pit bull who chased
skunks. When Fergie, her family’s English Labrador retriever, died, she mentioned in
the obit that Fergie was at the
top of her obedience class at
Petco.
“The thing about pets is
that they offer unconditional
love,” Ms. Lowrie said. “When
that loss occurs, it’s like a hole
in your heart.”
In the Line of Duty?
Most police deaths in Caracas involved criminal activity
by the police themselves, a 2016 academic study found.
Officers killed
Causes of death
of officers In Caracas
Venezuela
Capital District, Caracas
400
23.2%
53.6%
300
12.5%
7.1%
3.6%
200
ly
.
‘Call my mom, they
want to kill me!’ one
victim screamed after
police barged in.
Elibeth Pulido’s 27-year-old son Jose Daniel Bruzual was shot once in the upper chest in a police raid on her home in a poor barrio.
Eliezer Ramirez was killed in
2016 in Barlovento, Venezuela.
other than to correct grammar. “When it comes from the
heart,” he said, “I don’t want
to be messing with it.”
Nearly 500 people attended
Mikee’s memorial at the local
Czech-Slovak hall after Mr.
Carlson included an invitation
in the monkey’s online obit.
Mr. Carlson’s daughter flew in
from Texas, and a friend arrived from California.
Guests received buttons
with Mikee’s picture. They
watched videos, looked at pictures and ate pasta donated
from a local Italian restaurant.
An artist painted a portrait
and brought it. Mikee
“touched a lot of lives,” Mr.
Carlson said.
Jim Baker used Facebook to
announce the death of Joey,
his black and white cat of 20
years. Born in the backyard of
a Brooklyn apartment, Joey
survived his kittenhood raiding garbage cans and killing
mice and birds before being
coaxed into Mr. Baker’s apartment during a particularly bitter winter.
Nicknamed “the Little
Prince” because of his regal
looks, Joey had a distinctive
cry, the Facebook homage
said. “I was cradling Joey in a
Involved in suspected criminal
activity
Dispute with someone known
to the victim
No apparent motive
Legitimate defense
100
0
2012
’13
’14
’15
Accident with firearm
Source: Keymer Àvila, Central University of Venezuela
ROY CARLSON
Continued from Page One
Journal. By her account, the
operations target poor barrios
that have traditionally formed
the bedrock of support for
Chavismo, the radical leftist
movement in power since 1999
that is named after its late
founder, Hugo Chávez. She and
other human-rights activists
criticize them as misguided and
heavy-handed attempts to confront the crime running rampant in those neighborhoods.
“It’s a systematic policy
against a social sector,” said
Ms. Ortega. She said the police
and armed forces enter poor
barrios heavily armed in large
numbers, “leveling everything
that is in their way.”
The government of President Nicolás Maduro says it respects human rights but must
respond with force to battle a
soaring crime wave he and his
ministers say was hatched from
abroad to destabilize the country. Whipsawed by gangs and
cocaine, Venezuela has seen homicides spiral from 25 per
100,000 people in the first year
of the Chávez government to
70 per 100,000 in 2016. That is
the second-highest in the world
outside El Salvador, according
to the attorney general’s office
and criminologists.
“We can’t let our guard
down,” Mr. Maduro said in one
speech extolling the operations.
Calls and emails to Ms. Ortega’s successor, Tarek William
Saab, as well as to the president’s office and the police,
army, National Guard and other
agencies weren’t returned.
By Ms. Ortega’s count, Venezuelan
security
services
claimed roughly the same number of civilian lives in the year
ended June 30 as did Rodrigo
Duterte’s controversial antidrug campaign in the Philippines, a country three times
Venezuela’s size.
Forensic evidence indicates
the vast majority weren’t acts
of self-defense by security
forces.
An independent Caracas human-rights group, Families of
Victims Committee, or Cofavic,
tallied 6,385 extrajudicial executions from 2012 through the
first three months of this year,
in what it calls legally unwarranted social cleansing operations by state forces.
Fired by Mr. Maduro, Ms.
Ortega fled Venezuela in a
speedboat to avoid arrest before arriving in Colombia. She
recently filed a 495-page report
on rights abuses at the International Criminal Court in the
Netherlands, asserting that
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
CRIME
“the civilian population is victim of these criminal attacks.”
A copy of the report was reviewed by the Journal.
She now operates a parallel
prosecutor’s office, staffed by
Mr. Mundaray and others exiled from Venezuela, on a leafy
street in the Colombian capital.
Working with evidence and
documents smuggled out of
Venezuela, prosecutors say
they are advancing on cases of
alleged rights abuses and corruption by Ms. Ortega’s former
comrades.
Over the past year, Venezuela has entered a severe economic downturn. The output of
oil, its lifeblood, has declined
for 13 months; skyrocketing inflation has given way to hyperinflation; and millions struggle
to feed themselves. An increasingly authoritarian regime has
resorted to tactics long used in
dysfunctional countries to generate public support: militarystyle assaults on poor districts
and a growing body count of
people officials assert were
criminals.
“State policy is not to catch
the criminal,” said Mr. Mundaray. “Because there’s police
corruption and no control of
the jails or the courts, then
they opt to kill them.”
Venezuela escalated its lethal
use of force in 2015, when it
launched a new strategy called
FABIOLA FERRERO FOR THE WALL STREET JOURNAL (2)
IN DEPTH
Roy Carlson holds Mikee the monkey, who died unexpectedly.
THE WALL STREET JOURNAL.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 21, 2017 | A10A
NY
* * * * *
GREATER NEW YORK
New Yorkers with high
Divided
incomes to face greater Unevenly
Many New York City residents with higher incomes can expect to
tax burden than those see bigger tax bills than residents in the rest of the state, as well
residents of low-tax states, such as Florida. Here is how the
elsewhere, study shows as
typical single filer would fare, according to a New York City
BY JOSH BARBANEL
Chancellor Carmen Fariña
many of Mayor Michael
Bloomberg’s policies. She
stopped giving schools yearly
A-F letter grades, poured social
services into failing schools instead of closing them and
ended a ban on students bringing cellphones. She also sought
to foster collaboration among
schools, rather than competition, by asking strong ones to
serve as mentors.
Ms. Fariña worked closely
with the United Federation of
Teachers and put a premium
on professional development
to help struggling teachers improve. Critics said the union
had too much influence and
Ms. Fariña didn’t do enough to
weed out ineffective teachers
or embrace the potential of
charter schools.
Under her watch, city test
scores rose. Last spring, 41%
of students in grades three to
eight passed state tests in
English in district schools, and
38% did so in math.
Most New Yorkers will get
tax cuts under the sweeping
tax overhaul passed by Congress on Wednesday, but highincome wage earners will face
a significantly greater federal
tax burden, according to an
analysis by a business group.
The Partnership for New
York City said that on balance
the tax legislation, which
sharply lowers corporate tax
rates as well as taxes on other
businesses, would “benefit the
overall economy and the city’s
competitive position as a
global business capital.”
But its analysis also showed
a negative impact on high-income earners in New York City
and across the state, who will
be far worse off than high
earners in some other states.
The Partnership works with
government, labor and the
civic sector to promote New
York City.
Mayor Bill de Blasio, a
Democrat, and other local officials have blasted the legislation, saying it would raise
taxes on the middle class. The
study, however, found that
typical New York City households earning $200,000 or
less, and even married couples
with children earning as much
as $500,000 a year, will see
business group:
Tax increase or decrease in 2018 by income
Single filers
-$20,000
-$10,000
0
$10,000
$1 million
$20,000
$30K
$26,444
N.Y. City
N.Y. State*
$11,145
-$15,292
Florida
$500,000
N.Y. City
$4,944
N.Y. State
$4,944
Florida
$97
$100,000
N.Y. City
N.Y. State
Florida
$226
-$689
-$1,969
$50,000
N.Y. City
-$1,067
N.Y. State
-$1,327
Florida
-$1,327
*Excludes New York City
Source: Partnership for New York City
their taxes fall next year.
But taxes on higher earners
are expected to rise. Single
earners with incomes of $5
million in New York City, for
example, would see their federal tax bills rise by nearly
$140,000, while married couples would see taxes rise by
about $115,000, the analysis
THE WALL STREET JOURNAL.
found.
In contrast, the study found
that similar taxpayers in Florida would see taxes fall by
more than $102,000 for single
filers and more than $118,000
for couples.
In the rest of New York
state, taxes also would rise for
single filers with incomes be-
co Fo
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New York City Schools
Chancellor Carmen Fariña,
who said she wanted to improve the nation’s largest
school system by instilling a
spirit of joy and trust, is stepping down between January
and the end of the school year,
city officials familiar with the
matter said Wednesday.
When Ms. Fariña, now 74
years old, was appointed four
years ago, many teachers expressed relief to have a lifelong educator in charge after
more than a decade when that
wasn’t the case. Some principals soured on her, however,
saying her team micromanaged and didn’t respect their
decisions on personnel or student discipline. Critics said
she lacked a comprehensive
vision for reform, especially in
the most troubled schools.
Many educators and political
observers had expected Ms.
Fariña to retire soon, and she
had often said simply that she
would remain at least through
Mayor Bill de Blasio’s first term.
City Department of Education
officials declined to comment.
Mr. de Blasio had recruited
her out of retirement, saying
she would push his agenda for
universal prekindergarten, reduce the emphasis on standardized testing and boost parental involvement.
Overseeing roughly 1,800
schools and 1.1 million students, Ms. Fariña reversed
HANS PENNINK/ASSOCIATED PRESS
BY LESLIE BRODY
AND MARA GAY
Top Earners Take Hefty Hit
ginning at $500,000 but fall
for couples filing jointly with
incomes up to $1 million.
The difference between
New York and Florida comes
from a provision of the federal
tax bill that limits deductions
now available for state and local taxes to $10,000 a year,
hurting affluent taxpayers in
states with high state and local taxes. Florida has no income tax, while New York City
residents pay both a state and
city income tax.
“There is a huge gap,” said
Kathryn Wylde, chief executive
officer of the Partnership.
“The point is, New York’s
economy is dependent on top
earners. They pay half the income taxes in New York City.
They are people who are going
to get killed.”
She said the study raised
questions about recent calls
for a further increase in city
income taxes for the highest
earners to pay for the subway
or other services.
Many experts are predicting
the higher tax rates won’t produce a large exodus of high-income earners in New York. But
Ms. Wylde said they might deter entrepreneurs from moving
their businesses to the city.
“People should understand
what the implications are of
the bill that passed,” she said.
“Employers will have to figure
out what it is going to cost
them to compete for top people who will be paying these
taxes—scientists, entertainers,
financial and investment professionals and top executives.”
ly
.
Fariña Is Departing
As Schools Chancellor
When Bruce and Holly Brittain purchased the shell of a
townhouse on Lenox Avenue in
Harlem in 2010 for $825,000 it
still had flashes of its former
glory.
PROPERTY
The
1890
Queen Annestyle house in a
historic district had a peaked
mansard roof, but the windows
were bricked up. The fire department had spray-painted “no
floors” across the facade.
The Brittains rebuilt the
house, a massive do-it-yourself
project in which they con-
The Harlem townhouse in 2010, left, when Bruce and Holly Brittain bought it, and in 2017 after they finished renovating it.
Home Prices Hit
Records This Year
no
$4.59M
band, Bruce, who worked in finance, took over day-to-day
construction and financial management.
Their renovation odyssey illustrates the strength of the uptown market this year, a time
when prices in other higherpriced markets in Manhattan
have flattened.
The Brittains met in 2009 at
a boot camp for entrepreneurs
set up by the city. Bruce Brittain had worked in fixed-income
trading and sales at Bear
Stearns, an investment bank
that failed in 2008. Holly was an
architect who had just finished
a real-estate development program at Columbia University.
They began roaming the
streets of Harlem, where they
lived, in search of for-sale signs
and vacant property. They came
across a man installing a forsale sign on behalf of a mortgage company, Ms. Brittain
said, at the house at 208 Lenox
Ave., just north of West 120th
Street in the Mount Morris
Park Historic District.
“You could see the sky from
inside,” Ms. Brittain said.
They poured all their resources into the $825,000 purchase price and obtained an
$835,000 construction loan. Ms.
Brittain brought her paperwork
from office to office in the Department of Buildings, rather
than hiring an expediter as
most architects do.
They restored the facade of
the 20-foot-wide house, installed wood-framed windows,
put in new floors, and added a
rear balcony and a roof deck
paved in porcelain tiles. They
designed each apartment with
n-
BY JOSH BARBANEL
The townhouse's sale price. It
was bought in 2010 for $825,000.
trolled nearly every facet of
engineering, design and construction, and moved into the
top two floors.
Their efforts were rewarded
a few weeks ago, when they
sold their three-family home
for $4.59 million, a record price
for Central Harlem and the second-highest price for a townhouse across all of Harlem.
Ms. Brittain, an associate
broker with Rutenberg NYC,
listed and sold the house herself. She also is a licensed architect, and she designed the
restoration and walked it
through the complex city approval process herself. Her hus-
BRUCE AND HOLLY WILLIAMS BRITTAIN (3)
Bet on Harlem
Has Big Payoff
For One Couple
Harlem set records in
2017 for average and median
prices and price per square
foot for one-to-four-family
townhouses, according to brokerage Brown Harris Stevens.
With a string of seven
sales for $4 million or more
this year, the average price of
a Harlem townhouse rose
34% to just over $3 million,
more than double the price at
the peak of the last real-estate boom in 2007.
The median price was
$2.44 million, up 3.7% from
last year. Gregory Heym, chief
economist for Brown Harris
Stevens, said townhouse
transactions in Harlem fell
because available units were
in short supply.
Townhouses aren’t the
only real estate attracting
high prices in Harlem. A penthouse at Circa Central Park, a
condo facing the northwest
corner of Central Park on
West 110th Street, sold at
the end of November for
$7.24 million.
That was the highest
price paid for a condo in Harlem since 2008, when a penthouse at 111 Central Park
North sold for slightly more
than $8 million.
Up, Up and Away
Average price for a one-to-fourfamily townhouse in Harlem
$3.5 million
3.0
2.5
2.0
1.5
1.0
0.5
0
2006
’10
’15
Note: 2017 is year to date.
Source: Brown Harris Stevens
THE WALL STREET JOURNAL.
condominium finishes, with the
idea of perhaps turning it into a
condo eventually.
Being both the designer and
the client is particularly effi-
cient, Mr. Brittain said. “When
you are the client you focus on
every detail,” he said.
They lived there for four
years with their two young chil-
dren and turned their passion
into a business. Ms. Brittain has
worked on several other houses
for clients, and they are on the
prowl for other properties.
cellini moonphase
rolex
and cellini
are ® trademarks.
The buyer, an investor, put
their apartment on the rental
market even before the closing,
with a listing rent of $7,000 a
month.
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.
A10B | Thursday, December 21, 2017
NY
* ***
THE WALL STREET JOURNAL.
GREATER NEW YORK
Islanders Hooked
By $1 Billion Plan
BY MIKE VILENSKY
Holiday Show Is a Bust
BY CHARLES PASSY
It is billed as a rare opportunity to hear some of “the
greatest voices of their generation” in a program of beloved
holiday songs. But it is turning
more into the nightmare before Christmas—at least as far
as ticket sales go.
“Home for the Holidays,” a
concert-style limited-engagement show at Broadway’s August Wilson Theatre that features singers from such
reality-television shows as
“American Idol,” “The Voice”
and “America’s Got Talent,”
has cumulatively grossed
$324,905 since it bowed five
weeks ago, according to BroadwayWorld.com, a theater site.
That is a far cry from megahits
such as “Hamilton,” “The Lion
King” and “Springsteen on
Broadway,” which take in more
than $2 million a week.
Last week, “Home for the
Holidays” reported $70,470 in
sales, which represented 4.76%
of its potential $1.4 million
gross—what the show would
earn if every ticket had been
sold. The sales have prompted
some theater-world insiders to
call the show the Broadway
equivalent of “Ishtar,” the 1987
cinematic flop. “I can’t think
of any show that’s done this
poorly that’s stayed open this
long,” said Chris McKittrick,
an editor at Daily Actor, a
website that covers theater.
“Home for the Holidays”
producer Michael Guccione
$70K
Ticket sales reported by ‘Home
for the Holidays’ last week.
yond Broadway, such as the
“Radio City Christmas Spectacular” and the New York City
Ballet’s production of “George
Balanchine’s ‘The Nutcracker.’ ”
But theater professionals
say “Home for the Holidays”
was hurt by the fact its cast,
which includes singers Candice Glover, Josh Kaufman and
Bianca Ryan, isn’t that wellknown. Ticket prices range
from $59.50 to $169.50, with
premium seats up to $299.
Not helping matters: The
show generally received poor
reviews from the mainstream
and trade press. As a critic for
the
Hollywood
Reporter
opined, “Expertly recalling the
sort of entertainment you’d
experience on a cruise ship or
in a low-rent Las Vegas casino, ‘Home for the Holidays’ is a Christmas show only
Ebenezer Scrooge could love.”
Mr. Guccione said the show
is unlikely to recoup its initial
investment of $1.5 million. But
he sees hope for the production landing elsewhere in the
future, noting he has fielded
inquiries from outlets ranging
from regional theaters to TV
networks.
ly
.
Performers belt out songs in the limited-engagement Broadway show ‘Home for the Holidays.’
Gov. Andrew Cuomo on
Wednesday rolled out a $1 billion plan to bring the Islanders
back to Nassau County with a
state-of-the-art new arena.
Mr. Cuomo held an event at
Belmont Park in Nassau
County to announce the new
development at a location that
will serve the hockey team,
which moved to Barclays Center in Brooklyn in 2015.
“The Islanders are back
where they belong,” said Mr.
Cuomo, a Democrat, appearing
with Senate Majority Leader
John Flanagan, a Republican
who represents Long Island,
and National Hockey League
Commissioner Gary Bettman.
The new stadium will feature 18,000 seats, with a
435,000-square-foot retail development attached and 10,000
square feet of office and public
green space. The Long Island
Rail Road is developing plans
for a nearby station to operate
year-round instead of only for
special events, the governor’s
office said.
Belmont Park includes the
famed horse-racing track that
hosts the Belmont Stakes, the
final Triple Crown race.
The $1 billion price tag will
be privately funded by the
conglomerate of companies
co Fo
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Manhattan
Councilman
Corey Johnson, a longtime activist who has become an influential figure in city politics,
has pulled ahead in the race to
become the next New York
City Council speaker.
Mr. Johnson, a 35-year-old
Democrat, has sewn up support from council factions that
plan to vote as a bloc, according to people with knowledge
of the council’s discussions.
The council won’t vote on
its next speaker until January,
but members likely will commit to a candidate before then.
People close to the deliberations said the race is still fluid
but Mr. Johnson is garnering
key commitments ahead of the
vote.
The speaker often is considered the second most powerful
position in New York City politics and can serve as a check
on the mayor’s agenda. All
council speakers in recent history have run for mayor except for the current one, Melissa Mark-Viverito of Harlem,
who is leaving the council in
January because of term limits.
The council’s 51 members
vote on the speaker, but outside forces also exert influence. The Democratic county
organizations in Queens and
the Bronx are working with
members to pool their votes.
Representatives for those
county committees have called
council members this week to
indicate they are committed to
Mr. Johnson, said people familiar with the conversations.
Other council members vying for the position include
Ritchie Torres of the Bronx,
Jumaane Williams of Brooklyn, Mark Levine of Manhattan, and Robert Cornegy of
Brooklyn.
CAROL ROSEGG
BY MIKE VILENSKY
AND MARA GAY
awarded the land by the state.
That includes Madison Square
Garden and the Sterling Project Development, run by the
family that owns the Met. The
developers will get a tax
break, according to Mr.
Cuomo’s office.
The Islanders left Nassau
County when their lease was
up with the Nassau Coliseum
and the team owner wanted a
more modern facility after 43
years there. They have played
at Brooklyn’s Barclays Center
for the past two years.
The Islanders may return to
Nassau Coliseum in the interim, Mr. Cuomo said, but the
plans haven’t been finalized.
The first game at the new stadium is expected to be played
in 2021.
Local lawmakers said the
stadium would bring jobs and
boost the economy. “The foundation has been laid for a
sweeping economic development initiative for our region,”
said Long Island Sen. Elaine
Phillips, a Republican.
John Kaehny, director of
government-watchdog group
Reinvent Albany, was skeptical.
“This deal is much better than
empty parking lots, but it assumes that what’s needed is a
sports arena,” he said, adding
that affordable housing would
have been a better option.
said he considered ending the
run before the show’s scheduled Dec. 30 closing date,
given the weak sales. But he
ultimately believes there is a
market for this kind of holiday
entertainment on Broadway.
“Maybe we just misread
this thing, [but] we still think
the show fills a gap,” he said.
Certainly, limited-run holiday productions have had success on Broadway in the past,
to say nothing of offerings be-
From left, Islanders Captain John Taveres, Gov. Andrew Cuomo,
singer Billy Joel and Islander Cal Clutterbuck on Wednesday.
Man Gets Prison for Threats
JESSICA DONATI FOREIGN CORRESPONDENT
The Face of Real News
In 2013, Jessica Donati arrived in Kabul at the tail end of the U.S.’s
transfer of security to the Afghanistan government. Despite the dangers,
she traveled with and without military escort to report on the country’s
dramatic upsurge in violence. Over the next four years, Ms. Donati
provided WSJ readers the full scope of the unending corruption,
bombings and kidnappings that has encapsulated America’s longest war.
Real journalists and real news from America’s most trusted newspaper.
WATCH HER STORY AT WSJ.COM/JESSICA
Source: Pew Research Center, Political Polarization & Media Habits, 2014
© 2017 Dow Jones & Company, Inc. All rights reserved. 3DJ6166
A St. Louis man who threatened Jewish organizations in
Manhattan and around the
country as part of a campaign
to harass an ex-girlfriend was
sentenced Wednesday to five
years in federal prison.
Juan Thompson, 32 years
old, pleaded guilty in June in
federal court in Manhattan to
cyberstalking and making hoax
bomb threats. Mr. Thompson
made the threats early this year,
at a time when Jewish institutions nationwide were rattled
by what they said were an unprecedented number of threats.
There have been 172 bomb
threats against Jewish institutions in the U.S. this year, up
from six last year and zero in
2015, according to the AntiDefamation League.
“Thompson’s harassment
and threats caused severe distress to both his victim and to
Jewish communities around
the country,” said Joon Kim,
the acting Manhattan U.S. attorney.
An attorney for Mr. Thompson didn’t respond to a request
for comment.
Mr. Thompson’s threats
were made in part to harass an
ex-girlfriend, prosecutors said.
In July 2016, after the former
girlfriend broke up with him,
Mr. Thompson emailed her employer and said she had been
pulled over for drunken driving and had been sued for
spreading a sexually transmitted disease, a complaint said.
Mr. Thompson also made
threats against Jewish community centers and schools, both
in his name and that of his exgirlfriend, prosecutors said.
In January, Mr. Thompson
sent an email to a Jewish museum in Manhattan, prosecu-
WARREN COUNTY SHERIFF’S DEPARTMENT
no
n-
BY CORINNE RAMEY
Juan Thompson
tors said. The email read, according to the complaint:
“Juan Thompson put 2 bombs
in the History Museum set to
go off Sunday.” The New York
Police Department didn’t find
any bombs.
Mr. Thompson also emailed
a Jewish school in Manhattan.
He said he “put two bombs in
the middle school last night”
and was eager for “a Jewish
newtown,” an apparent reference to the school mass shooting in Newtown, Conn.
In February, he sent an
email to the Anti-Defamation
League, saying his ex-girlfriend “is behind the bomb
threats against jews. She lives
in nyc and is making more
bomb threats tomorrow.”
Mr. Thompson also called
the ADL and said there was
explosive material in its Midtown Manhattan office, prosecutors said. The league’s office
and others in the building
were evacuated, said Jonathan
Greenblatt, the organization’s
chief executive.
“It’s safe to say anti-Semitism isn’t new, but we’ve
never seen bomb threats like
this,” he said, of the incidents
this year.
GREATER NEW YORK WATCH
CRIME
BROOKLYN
ATLANTIC CITY
Woman in Kayak Case Prosecutors Say Man State Won’t Sell
Finishes Prison Term Convicted on False ID City’s Water Utility
A 37-year-old woman convicted of causing her fiancé’s
drowning death during a kayak
outing on the Hudson River is
being released from prison
Thursday.
Angelika Graswald, of Poughkeepsie, pleaded guilty to criminally negligent homicide over the
summer for the death of 46year-old Vincent Viafore and
was sentenced in November to
16 months to four years in
prison. She has been in jail since
her April 2015 arrest, which
counted toward her time served.
Ms. Graswald and Mr. Viafore
went kayaking on a choppy Hudson River in April 2015. Prosecutors said Mr. Viafore’s kayak
started sinking after Ms. Graswald
secretly removed a drain plug.
—Associated Press
A man who spent more than
25 years behind bars for rape
and robbery has been set free
after prosecutors on Wednesday
asked to vacate his conviction
because he had been falsely
identified.
Mark Denny was convicted in
1989 of a rape and robbery after
three men broke into a closed
Burger King, assaulted an 18year-old worker and robbed the
store of $3,000. He had been
identified as a suspect after an
unrelated arrest months after
the attack. The victim at first
didn’t identify him but later
picked him out of a lineup.
The case is the 24th conviction that the Brooklyn district
attorney’s office has disavowed
in the last 3½ years.
— Associated Press
New Jersey officials say Atlantic City’s water utility won’t
be privatized.
There had been speculation
that the state, which had seized
control of Atlantic City’s assets
and major decision-making
power a year ago, would try to
sell the water works to help pay
down the city’s debt.
Former U.S. Sen. Jeff Chiesa,
who was appointed by Republican Gov. Chris Christie to oversee the city, said Wednesday
the state won’t seek to sell the
utility.
Mr. Chiesa said he became
convinced of the utility’s importance to Atlantic City.
Governor-elect Phil Murphy, a
Democrat, has promised to end
the takeover of the city.
—Associated Press
KEVIN P. COUGHLIN/OFFICE OF GOVERNOR ANDREW M. CUOMO
A Leader
Emerges
In Speaker
Contest
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.
LIFE&ARTS
Thursday, December 21, 2017 | A11
Pittsburgh’s airport sees far fewer
travelers today than 15 years ago.
A statue of Pittsburgh Steeler great
Franco Harris, above, greets travelers.
THE MIDDLE SEAT | By Scott McCartney
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.
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and prompted big questions like whether to
build new garages.
The trade association
Airports Council International-North America estimates that U.S. airports
face nearly $100 billion in
infrastructure needs over
the next four years. Airports are urging Congress
to raise the $4.50 cap on
the passenger facility
charge that each airport
can include in a departing
passenger’s ticket. Airlines oppose the fee hike.
With or without the
increase, airports are
pushing ahead. Local voters approved a $1 billion
plan in November to
build a single new terminal at Kansas City International Airport to replace the three circular
terminals that opened in
1972, before passenger
and baggage screening
was required.
Pittsburgh has approval for its own $1.1 billion rebuilding, which it
says will actually lower
costs and not require any
increase above the $4.50
passenger fee.
The airport built for
the convenience of connecting passengers now has few
out-of-towners just passing through.
But it remains inconvenient for locals. There are few covered parking
spaces in a snow-belt city and long
walks from parking spaces. The
train you have to ride from gates to
the street is unnecessary and costs
over $4 million a year to run.
Three years ago Ms. Cassotis arrived and began a campaign to
convince the community that the
hub was never coming back. Cities
love airport hubs—the local residents and businesses get nonstop
no
Pittsburgh
THEY BUILT THE WRONG airport
terminal here.
When the new Pittsburgh International Airport terminal opened 25
years ago, it was seen as the airport
of the future. Planes could taxi all
the way around the gate areas with
no alley or buildings to slow arrivals and departures. It had a shopping mall and an advanced baggage
system. And it had a half-mile train
ride to gates, because nothing says
modern airport like a train.
Now the airport’s speedy obsolescence stands as a symbol of how
much air travel has changed. The
expansive check-in area is largely
empty—few travelers interact with
anyone at the check-in counter anymore. The small security screening
area—built before 9-11—is overwhelmed. Lines typically reach the
terminal door and stretch back to
parking in the morning.
“It was built for another time,”
says Christina Cassotis, chief executive of the Allegheny County Airport Authority, which operates PIT.
Airports across the country are
finding they need to do more than
just upgrade food, power outlets
and pet-relief areas. Some need
major systems upgrades, as the Atlanta power outage painfully demonstrated. And some need to rebuild to keep up with changes in
the industry.
Airline consolidation has shifted
traffic dramatically for some airports, forcing places like Los Angeles International to undertake a
massive rearrangement of terminals. Others have had to deal with
dramatic service losses when airlines shut down medium-size hubs
in the middle of the country.
Phone apps, kiosks and self bagtagging have shrunk some airport
needs; security requirements have
expanded others. The popularity
of ride-sharing services has decreased parking, rental-car and
taxi revenue for many airports,
n-
JUSTIN MERRIMAN FOR THE WALL STREET JOURNAL
What to Do When
Your Airport Is
Too Big
kin over dinner: Eliminate 24 gates
of the 75 gates to build a new
landside building, filling in the
bottom of the X, and attach the
two structures together.
“It’s a smaller space overall,
but way more efficient,” Ms. Cassotis says.
The airport authority approved
the plan in September, and Pittsburgh expects to break ground on
the three-year project in 2019.
The airport is growing again,
aided by the strong local economy.
Passenger traffic is up 7.7% this
year and Pittsburgh has 72 nonstop
destinations, up from a low of 37.
(The peak from its days
as a US Airways hub was
110.) The airport has recruited discount carriers
like WOW and Condor
from Europe, and new
types of carriers like OneJet, which flies scheduled
service on small business
jets on routes abandoned
by airlines. Southwest
now carries the most passengers at Pittsburgh,
slightly ahead of American, which merged with
US Air in 2013.
The 1992 building was
so focused on connecting
passengers, it provided no
exit for international arriving passengers except
going through security
screening. This is normal
for connecting customers
boarding domestic flights, but almost unheard of for sleepy locals
who just want to get to their cars.
“People hated that,” says Paul
Hoback, senior vice president of facilities.
So the airport knocked a new
exit through a wall. When international flights touch down, security
guards commandeer an employee
hallway and use an emptied-out
storage room to get arriving passengers whose final destination is
Pittsburgh to the airport train.
They have to ride in a single train
car with a guard who makes sure
they exit.
To alleviate the baggage system
problems, the airport spent $1 million to move Southwest’s check-in
area and put the airline on American’s 8-mile-long automated baggage system. But Southwest found
the system too slow for arriving
customers—it took more than 20
minutes for bags to travel to carousels. Southwest went old-school,
driving bags in tugs straight to
baggage claim. The airline uses
the automated system for outbound bags only.
Gates are plentiful at
Pittsburgh’s airport, above.
A modernization plan will
eliminate 24 of them.
Security lines, left, back up
easily at the airport.
flights to many more cities than local traffic alone can support. (They
also typically pay higher fares, because a single airline has dominant
market share.) Plentiful air service
can help attract corporate relocations and conventions.
“It’s very hard for a community
that has had all that service to understand that’s not their future,”
she says.
Her staff had been struggling
with a master plan—how could they
rework the existing terminal into
what Pittsburgh needed, not what a
hub airline needed?
The airport has two big
buildings—one “landside”
for check-in and security
screening, and a second
“airside,” with gates laid
out in a large X formation.
The underground train
connects them. The airport
wanted to consolidate into one
building with a big new security
area, single baggage system and
short walks. The check-in area
would be only half its current size.
A new transportation center across
the street from the terminal would
include covered parking.
Ms. Cassotis, a longtime airport
consultant who had never run one
herself, met monthly with some
mentors for advice when she
started the job. Former Dallas-Fort
Worth International Airport CEO
Jeff Fegan drew an idea on a nap-
FILM
AARON SORKIN TAKES ON A TRICKY SCRIPT: HIS OWN
STXFILMS
BY DON STEINBERG
Jessica Chastain and director Aaron Sorkin behind the scenes on the set of ‘Molly’s Game.’
AARON SORKIN may be the bestknown screenwriter working today,
but he had never directed a movie
before “Molly’s Game.” It opens on
Dec. 25 and raises a pointed question: What has Aaron Sorkin learned
about the unique challenge of directing an Aaron Sorkin screenplay?
Directors of Mr. Sorkin’s prior
scripts, for TV shows “The West
Wing” and “The Newsroom” and
films including “Steve Jobs” (Danny
Boyle), “The American President”
(Rob Reiner), and “Moneyball”
(Bennett Miller), mastered the art
of turning the writer’s dialoguedense style into cinematic action.
Sorkin scenes are thick with ardent
soliloquies and spitfire wordplay
designed to reveal characters’ intentions, often as they sit across tables or walk down hallways. Jeff
Cronenweth, the cinematographer
of “The Social Network,” which David Fincher directed and for which
Mr. Sorkin won an Oscar for writing, said the aim was to “make the
dialogue the hero of the movie.”
“There’s no question I borrowed
very liberally from everyone who
has done something I liked,” Mr.
Sorkin says of his directorial debut.
He recalls the first table-reading of
his screenplay for 2007’s “Charlie
Wilson’s War,” which Mike Nichols
directed. Actors including Tom
Hanks, Julia Roberts and Philip
Seymour Hoffman assembled to
read the wordy script, and Mr.
Nichols’s simple instruction to
them was: “Start talking as soon as
it’s your turn, and don’t stop talking until your turn is over.”
In “Molly’s Game,” Jessica
Chastain plays Molly Bloom, who
organized one of the richest private poker games in America, seating movie stars, business billionaires and other hotshots. The film
tracks her entrepreneurial drive
building the glitzy game and her
resilience after the FBI arrests her.
Idris Elba portrays her lawyer and
Kevin Costner her demanding father. The film, from STX Entertainment, has received Golden Globe
Please see SORKIN page A12
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A12 | Thursday, December 21, 2017
LIFE & ARTS
DANCE REVIEW
ly
.
ALEXANDER IZILIAEV (3)
A Caribbean-Flavored ‘Nutcracker’
From top: Nathalia Arja (center); Erick Rojas and Reyneris Reyes (center); and Renan Cerdeiro and Jennifer Lauren
SORKIN
Continued from page A11
nominations for Ms. Chastain and
for the screenplay.
It wasn’t clear who was going to
direct after Mr. Sorkin adapted
Ms. Bloom’s 2014 memoir into a
200-page script, which for writers
of less tightly packed dialogue
could translate into a three-hour
film. Mr. Sorkin met at a restaurant with producers Mark Gordon
and Amy Pascal. “Each of us had a
list of about 20 directors’ names,”
he recalls. “And when we got to
the end, Amy and Mark said, ‘We
think you should direct it.’ I kind
of just ‘aw shucks’-ed it. I didn’t
really think they were serious, and
I didn’t want to hold them to it.”
Then he thought about it and
took them up on the offer—partly
to be sure that nobody turned the
movie into a raucous female version of “The Wolf of Wall Street,”
he says. “I knew there would be a
natural gravitational pull toward
the shiny objects in the story: the
decadence, the glamour, the
money, the Hollywood boldface
names.” He wanted a more subtle
and emotional film, and “didn’t
want to litigate my choices.”
As an acting student turned
playwright turned TV show runner
and film screenwriter, Mr. Sorkin
had been involved in practically
every element of production, from
casting to editing. Still, as a neophyte director, “I knew I would
have to surround myself with very
talented people who had the ability to work with a first-time director. “ They included first assistant
director Walter Gasparovic (from
films like “Baby Driver” and “Spotlight”) and set designers David
and Sandy Wasco, who won an Oscar for “La La Land” while
“Molly’s Game” was shooting.
Mr. Sorkin knew he wanted Danish cinematographer Charlotte
Christensen, who shot “The Girl on
the Train” and “Fences” (”wall-towall August Wilson dialogue,” he
points out).
“I had to confess to her that in
my 25 years of doing this, I had
managed to absorb none of the science of filmmaking,” Mr. Sorkin
says. “We would huddle up before
a shot, and Charlotte would say ‘I
think we should throw on a 60
[millimeter lens]’ and look to me
for confirmation. And all I’d be
able to say was ‘Sixty, 61—whatever it takes.’ ”
Given the chance to direct his
own words, Mr. Sorkin avoided the
sorts of “Sorkinisms”—signature
phrases and techniques in his prior
tones of these two ensemble numbers. The energetic artistry of
MCB’s female ensemble reveals the
former as alive with bolting force;
the latter, with lilting shimmer.
The more than 50 student dancers here in Miami, all from the
company’s affiliate school, looked
a little more mature than those
Balanchine preferred, especially when some of them
grinned more self-consciously than naturally.
This was particularly the
case in the opening, family
party scene. But, in the
role of the Nutcracker
transformed to Little
Prince, 14-year-old Erick
Rojas—pencil-thin and elegant—possessed perfectly
schooled manners and an
aristocratic mien. The
youngest and smallest cast
members, about 8 years
old, played the angels who
open the second act. In
their floor-length golden dresses
with fleecy wings and little halos,
they became irresistible innocents
who skittered in snaking formations with smiles as bright as
those likely found on the faces of
their audiences.
As for the demanding leading
and solo roles, MBC fielded two
Mr. Greskovic writes about dance
for the Journal.
Aaron Sorkin
says that for his
directorial debut
he ‘borrowed very
liberally’ from
other directors.
MASTERCLASS
n-
ribbean coloration to the
two-hour show. In the second act’s Land of Sweets,
James F. Ingalls’s lighting
often washes tangerine
skies behind celebrations
framed by a confectionery
set telling of Spanish pastries and fruits.
Balanchine’s dancedriven narrative about a
child heroine, named Marie, and her boy-prince
shines through the action,
as the youngsters make
their way from a cozy
home on Christmas eve to
triumph over a battle between marauding mice and toy soldiers and then journey through a
wintry forest to a sweet land over
which their goodness can rule. Notably beautiful ballet dresses for
the Waltz of the Snowflakes, all
soft, bluish whites, and for the
Waltz of the Flowers, all layered,
blush pinks, heighten the distinct
no
Miami
‘GEORGE BALANCHINE’S ‘The
Nutcracker’”—as the choreographer’s 1954 version of the now-familiar Christmastime Tchaikovsky
ballet, first given in Russia in 1892,
has been branded since his death in
1983—evolved over the years since
its beginnings at New York City
Ballet. After 1964, when Balanchine
restaged the work with new settings and further costuming for
NYCB’s then-new home in Lincoln
Center—by which time the two-act
ballet had become a holiday favorite throughout the U.S. in numerous
other versions—the choreographer
continued to adjust his staging.
A brand-new production of Balanchine’s work by Miami City Ballet, which first mounted it in 1990
(in a production I’d never seen),
had its premiere earlier this month
at Los Angeles’s Music Center,
which co-commissioned the ballet.
Last weekend, MCB’s home city,
where I caught two performances,
saw the revamped production for
the first time. The newness comes
in the form of strikingly fresh sets
and costumes designed by Isabel
and Ruben Toledo. All the while,
the theatrical heart and soul of
Balanchine’s deft direction and
fine dancemaking remain soundly
in place.
Cuban-born Lourdes Lopez,
MCB artistic director since 2012,
commissioned the Toledos, who
were also born in Cuba and who
are husband-and-wife fashion and
design collaborators. The results
are endlessly fanciful and colorful,
with stylish costuming that combines couture finesse with dancefriendly freedom.
Though the fir trees, snows and
rooftops depicted in the scenery
and in Wendall K. Harrington’s animated projections indicate the
Nuremberg, Germany, of E.T.A.
Hoffmann 1816 story that inspired
the ballet, there is an abiding Ca-
impressively strong casts. Confident Jennifer Lauren portrayed
the Sugarplum Fairy as a regal
queen shaping the intricacies of
both the role’s piquant solo and its
grand pas de deux with ease and
surety. Beaming Nathalia Arja
made her Sugarplum performance
into a most winning, sprite-like affair. Both Renan Cerdeiro and Renato Penteado, dancing, respectively, as these Sugarplums’
cavaliers, did so with flair and finish—especially Mr. Cerdeiro,
whose attentive partnering effortlessly secured Ms. Lauren’s daring,
climactic poses.
As leader of the Candy Canes—
in a mercurial, dancing-through-ahoop solo in which Balanchine
himself excelled in 1920s Russia—
Kleber Rebello gave a performance
that stands out notably amid all
those I’ve seen in this role in my
more than four-decade acquaintance with its choreography. Leading the Waltz of the Flowers, as its
Dew Drop, both Ashley Knox and
Ms. Arja spun and darted with
breezy power.
And so how, one might ask, was
the decorated evergreen that plays
a major part in the magical transformation of the family parlor?
Balanchine once said that this
needed to be impressive, since the
ballet “is the tree.” MCB’s tree
starts out looking somewhat lackluster, like the shallowly embossed
image on a Christmas card. Its music-keyed transformation to towering scale is brought about by projections and moving decor, but the
effect is more a smooth scene
change than an awe-inspiring display of expansive growth.
Luckily, MCB’s tree is but a
small disappointment in the grand
picture of this beguiling “Nutcracker,” a production that adds a
new and marvel-filled chapter to
the ballet’s long and evolving history.
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BY ROBERT GRESKOVIC
work, such as the “walk and talk”
or someone skeptically saying “Ya
think?”—that have been widely
spoofed. “Except for a seven-second
walk from Idris Elba’s reception
area to his office,” he says, “there is
no moment in the movie when a
character is walking and talking at
the same time.”
The newbie director, who
brought in the film at 2 hours and
20 minutes, found strength in all
the collaboration. He isn’t ready to
buy into the auteur theory, the idea
that films are the singular vision of
their directors.
“I’m going to tell you this story
just ’cause I think it’s funny. I’m not
angry about it in any way,” he says.
“My first play—and my first
movie—was ‘A Few Good Men.’ I
have two posters side-by-side in my
office. One of them says ‘A Few
Good Men. A Play by Aaron Sorkin.’
The other one says ‘A Few Good
Men: A Film by Rob Reiner.’ And my
job was exactly the same on both.”
“I don’t know who said movies
are a director’s medium, but I
promise you it was a director,” Mr.
Sorkin says. But he enjoyed directing, and says he would do it again,
now that he’s getting the hang of it.
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.
Thursday, December 21, 2017 | A13
LIFE & ARTS
DECORATING
O, White Christmas Tree!
In the Instagram era, unabashedly artificial trees trimmed in synthetic snow serve as backdrops for glitzy ornaments
co Fo
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White Christmas trees, above, are proving popular—and photogenic—this year. At left, Natosha Tullos’s tree, which she
trimmed with glass, silver and white ornaments, glows beside her son, Jase Marshall, and his fiancée Emily Lugenbeel.
for online home-décor retailer
Wayfair. “Today, everyone is pushing the envelope and thinking
about how they can capture a moment through the lens of their
smartphone. That plays a huge
role when it comes to decorating
for the holidays.”
Wayfair says sales of white
trees from October to Dec. 10 quadrupled compared with the yearearlier period, with many models
selling out earlier than expected.
This year, white trees make up 13%
of total Christmas tree sales, up
n-
from 5% last year. “That’s crazy
high,” says Adam Skomurski, Wayfair’s seasonal category manager.
The company increased the number of models offered by 71% to
120 this year, as buyers spotted
white trees at trade shows and images of dream-house living rooms
with white Christmas trees on social media. “When we put that together, we were confident sales
would trend upward in 2017,” Mr.
Skomurski says. “But this surpassed our expectation.”
Home Depot has seen a 50% increase in sales of white trees in
stores and online. This year, it
added a Lexington artificial tree
with “warm white lights and pine
cones” to its mix of white trees.
The Lexington sells for $249 to
$299, depending on size. Five out
of 40 artificial trees displayed in
Home Depot stores are white, up
from just two last year. “That’s actually a lot,” says Kelie Charles,
holiday merchant at the retailer. “I
was concerned about having that
many on the floor.”
Artificial Christmas trees are a
$1.2 billion business, with sales
increasing about 3% each year,
says Thomas Harman, president of
the American Christmas Tree Association, a trade group that represents artificial and real Christmas tree suppliers. This year, he
expects sales to rise by 3% to 5%,
thanks in part to reports of shortages of real trees. The National
Christmas Tree Association, which
represents growers of fresh trees,
says sales for the $2 billion-a-year
business have been relatively flat
in recent years. Marsha Gray,
spokeswoman for the association,
estimates prices are up 2% to 3%
from last year.
“The shortage of trees and an
increase in prices may tip people
over the edge into buying that artificial Christmas tree they’ve been
thinking about buying for the past
few Christmases,” says Mr. Harman, who is founder of Balsam
Hill, a Redwood City, Calif., maker
of artificial Christmas trees. Consumers figure: Why not do something different?
In some ways, a white tree is a
better canvas than a green one,
says Mr. Harman, whose sales of
white trees doubled this year as
sales of other trees increased 6%
to 8%. That influence, he thinks, is
coming from designers, blogs and
stage sets and trickling down to
consumers. “Here’s the thing: A
green tree is actually difficult to
decorate because so many things
blend into green,” he says. Consumers find that out when they
buy red and green ornaments. “It
turns out that green ornaments often don’t look really great on a
green tree.” A white tree makes
colors stand out more.
Natosha Tullos, a nurse in Salt
Lake City, switched this year from
a real tree to a $159 white-frosted
model from Walmart. “For whatever reason, I am into the whole
White Christmas thing this year,”
says the 45-year-old mother of
four, ages 17 to 23. Her living room
furniture and throw pillows are
white or shades of taupe and gray,
so the tree fits in well, she says. “I
wanted a whiter feel to my Christmas décor.”
She used glass, silver and white
ornaments and large blush-colored
balls to echo her home’s bright
pink front door. “I love the idea of
bringing snow into my living
room,” she says.
MUSIC REVIEW | By Jim Fusilli
no
CASTING A WIDE SONIC NET
‘No One Ever Really Dies’ is the newest
album from N.E.R.D.
DRIELY S
WELL BEFORE 2013, when he became a household name with the
funky megahits “Happy,” “Blurred
Lines” with Robin Thicke, and “Get
Lucky” with Daft Punk, Pharrell
Williams was already a respected
entity in pop and hip-hop circles. In
the mid-1990s, he and high-school
classmate Chad Hugo formed the
Neptunes, an in-demand production-and-songwriting tandem behind hits by Beyoncé, Mariah Carey,
Jay-Z, Snoop Dogg, Britney Spears,
Justin Timberlake and many others.
And Mr. Williams wore another hat:
In 1999, he, Mr. Hugo and Shae Haley formed N.E.R.D, which mixed
electronica, funk, hip-hop, pop and
rock for an appealing, distinctive
blend. The trio recorded four albums prior to a hiatus beginning in
2010 that was disrupted only by the
appearance of three new tracks for
“The SpongeBob Movie: Sponge Out
of Water.” Now N.E.R.D returns with “No
One Ever Really Dies” (Columbia).
As might be expected given the Neptunes’
credentials, “No One Ever Really Dies”—a
phrase abbreviated as the band’s name since
its beginnings—is populated with pop and
hip-hop stars including André 3000 (whose
Outkast shared an aesthetic with N.E.R.D),
Future, Kendrick Lamar, Frank Ocean,
Rihanna and Ed Sheeran. Their contributions
are more than ornamental, but if the album
unfolds like a multi-artist mixtape, it’s due
more to the trio’s all-embracing approach to
contemporary music than to the variety of
voices on top. Very few songs unfold as expected as the pristine tracks jumble and recast beats and sounds in unpredictable ways.
Jumping from mode to mode without forewarning, traditional song structures are
hinted at, then abandoned. From the peripatetic minds of masters of modern music-mak-
ing, “No One Ever Really Dies”
can intrigue as it delights.
“Rollinem 7’s,” featuring
André 3000, opens as a warbly bit of experimentalism in
which repeated staccato
phrases pepper the space
above hypnotic bass patterns.
Then it leaps into lively funk
with textured percussion—
and then shifts to a rock feel
with static drumming. That
third movement of “Rollinem
7’s” echoes the underpinning of “Lemon,”
which morphs but keeps up its tempo as
Rihanna enters, dominates and then vanishes. Melodies are repeated in different settings. One top line of “Voilà,” which features
Gucci Mane and Wale, reappears in “Don’t
Don’t Do It!,” a silky samba that includes a
heavy rock guitar interlude that jabs under a
frantic rap by Mr. Lamar.
Meanwhile, “Voilà” abandons its swinging arrangement for a lurching setting
with steel drums. “Lightning Fire Magic Prayer”
uses vintage keyboard
sounds in conjunction
with synthesized drum
patterns that press the
1970s up against today.
Then that song’s environment shifts to robotic industrial rock that nevertheless swings.
In several songs, the sonic undercurrents
of “No One Ever Really Dies” seem a deliberate reflection of the chaos and confusion
noted in the lyrics, some of which take the
form of political and social commentary.
Sparked by the September 2016 police
shooting of Keith Lamont Scott in Charlotte,
N.C., “Don’t Don’t Do It!” discards its
mellow tone as Mr. Williams recites
a list of cities in which AfricanAmerican men have been shot and
killed by law enforcement. Featuring
Mr. Haley rapping about the gap between teens and parents on hot-button social issues, “Secret Life of Tigers” is a catchy slice of funk that
drops the groove to stab and provoke with sharp beats. Similarly, in
“ESP,” while Mr. Williams chides and
challenges a disinterested electorate,
N.E.R.D abandons the hook for
spacey spoken-word interludes. As
experiments in arrangements and
production, the tracks work well. But
however earnest the lyrical point of
view may be, its sting is somewhat
diminished by the most salient element of the album: the frenetic nature of the music. If the anti-Trump narrative of “Deep Down Body Thurst” is
effective, it’s because the lilting, propulsive
music clears a path for the message.
Time and again, “No One Ever Really Dies”
reveals its best qualities through its musical
inventions. Most tracks rise from a rubbery
bottom that provides a bouncy platform supporting all sorts of polyrhythms. Though instruments come and go, the overarching effect is never haphazard or fully disorienting.
N.E.R.D’s experimental music acknowledges
pop, but steers clear of its repetitive, predictable tendencies. Those who come to “No One
Ever Really Dies” for the smooth, cheery Mr.
Williams may be disappointed initially, but
there’s so much to savor here that one’s expectations are easily adjusted.
Mr. Fusilli is the Journal’s rock and pop
music critic.
WSJ PHOTO ILLUSTRATION: WAYFAIR (4); WALMART; NATOSHA TULLOS
WHITE CHRISTMAS TREES are
white hot this year.
A shortfall of real trees, along
with a waning stigma of artificial
ones, have more consumers not
only embracing faux trees but also
playing them up.
“What could be more faux than
having a snow-covered tree in
your living room?” says Carrie
Chen, brand manager for Treetopia, an online Christmas tree retailer whose sales of white trees
are up 44.5% this year.
White trees—whether flocked
with fake snow or shimmering
stark white—can appear lit in daytime and are photogenic, particularly in white-on-white looks in
home-décor magazines and on Instagram.
“If you’re going to have a tree
that isn’t real, it feels like you’re
owning it,” says Clea Shearer, coowner of the Home Edit, a homeorganization company based in
Nashville, Tenn. Ms. Shearer put
up a stark-white 7-foot tree near
her foyer at home. She paid $93
for it on Amazon and enlisted her
children, Stella, 6, and Sutton, 3,
to help decorate it in shatterproof
Christmas balls, with pinks and
reds near the top and purples toward the bottom. The tree adds a
pop of color to a black-and-white
room.
Fake has become a
new badge of authenticity. More people
find that trying to
appear all-natural all
the time is exhausting. Women delight
in telling one another
that their eyelashes
are fake. Sally Swift,
a 56-year-old radio
producer in Silver
Spring, Md., says she
took a break this year
from chopping down
and hauling home a
fresh Christmas tree.
Instead, she put up a
plastic one trimmed
in white lights and
blue paper ornaments from Party
City. Total cost: $130.
“There is so much freedom for
me in this,” she says. The tree, she
says, “is so ugly, it’s kind of beautiful. People’s jaws drop when they
see it. They laugh and say, ‘That’s
really great.’ It’s a great conversation.”
White trees have taken off on
social media. “For so long, there
have been these decorative expectations when it comes to what a
Christmas tree should look like,”
says Julie Cassetina, spokeswoman
ly
.
BY ANNE MARIE CHAKER
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A14 | Thursday, December 21, 2017
SPORTS
McKayla Maroney won a gold and
silver medal for the U.S. at the 2012
London Olympics.
GYMNASTICS
speak up against abusive behavior—including the despicable acts
of Larry Nassar.” Neither Allred
nor Maroney’s lawyer John Manly
responded to a request for comment on the statement.
Maroney’s lawsuit alleges that
the U.S. Olympic Committee knew
in the summer of 2015 that USA
Gymnastics was forcing Nassar out
because of allegations of sexual
molestation, but concealed that
knowledge, including in testimony
A new lawsuit alleges
officials put a premium
on secrecy that came at
the expense of athletes.
before the U.S. Senate.
On Wednesday, Mark Jones, a
spokesman for the U.S. Olympic
Committee confirmed the organization first learned of the allegations against “a USA Gymnastics
physician” in summer 2015, after
receiving word from USA Gymnastics. “At that time USA Gymnastics
indicated that they were in the
process of contacting the appropriate law enforcement agencies,”
said Jones.
The Journal asked the U.S.
Olympic Committee in May if it
n-
OLYMPIC gold-medal-winning
gymnast McKayla Maroney signed
a confidential $1.25 million settlement agreement with USA Gymnastics in December 2016 to resolve claims related to her alleged
yearslong sexual abuse by the national team’s longtime doctor,
Larry Nassar.
The existence of the settlement,
the terms of which were described
to The Wall Street Journal by a
person familiar with the settlement, was revealed in a lawsuit
filed by Maroney Wednesday in
Los Angeles Superior Court, seeking damages from the U.S. Olympic
Committee and Michigan State
University, where Nassar worked
for decades, on the grounds of
negligence, sexual harassment and
other civil claims.
The lawsuit also names USA
Gymnastics as a defendant and
seeks to invalidate parts of Maroney’s settlement, claiming the
agreement’s nondisclosure and
non-disparagement clauses are illegal. The lawsuit, brought by one
of the most celebrated and recognizable Olympians of the modern
era, casts a harsh light on the U.S.
Olympic leadership, alleging that
officials put a premium on secrecy
that came at the expense of athletes. And the settlement brings
into sharp relief the potential exposure USA Gymnastics faces,
placing a price tag on abuse that
could reshape the embattled governing body as it strives to recover from the scandal.
It isn’t known if USA Gymnastics paid settlements to any other
alleged victims of Nassar, who has
been accused by scores of girls
and women—including two of Maroney’s former Olympic teammates—of sexually abusing them
under the pretense of providing
medical care. Nassar pleaded
guilty in July to federal child-pornography charges and was sentenced earlier this month to 60
years in prison. He also pleaded
guilty to first-degree state sexualabuse charges.
In a statement Wednesday, USA
Gymnastics said the settlement’s
confidentiality was Allred’s request. “In 2016, McKayla’s attorney at the time, Gloria Allred, approached USA Gymnastics,
requesting that the organization
participate in a confidential mediation process,” a spokeswoman
wrote. “USA Gymnastics cannot
speak to the mediation process,
which is confidential and privileged under California law.”
The organization said the settlement followed California law. “Although USA Gymnastics is disappointed by today’s filing, we
applaud McKayla and others who
was aware of settlements between
USA Gymnastics and at least one
gymnast. They said they were not,
and haven’t been able to confirm
the settlement since, Jones said.
A spokesman for Michigan State
declined to comment.
Maroney, now 22 years old and
retired from the sport, went public
with allegations against Nassar in
a Twitter post in October. She said
Nassar began abusing her when
she was 13 years old, when she
joined the national team, and continued until she stopped competing in 2013, including the night before she competed at the 2012
London Olympics. Through her
lawyer, John Manly, Maroney declined to comment.
The settlement agreement was
signed by Maroney, her lawyer,
Gloria Allred, former president of
USA Gymnastics Steve Penny and a
lawyer for the governing body. Allred is not named in the lawsuit –
Manly, a California plaintiff’s lawyer who has led much of the litigation related to Nassar, filed the
lawsuit on Maroney’s behalf. Allred declined to comment. A lawyer
for Penny declined to comment.
Penny left the organization earlier this year amid criticism of the
organization’s handling of the Nassar matter and other sexual-abuse
allegations. He received a payout
of around $1 million at the time of
his departure, the Journal has pre-
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RONALD MARTINEZ/GETTY IMAGES
Maroney, USA Gymnastics
Had Confidential Agreement
Weather
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.
-0s
Vancouver
V
Calgary
ary
no
Edmonton
d
20s
10s
40s
Seattle
ttl
Portland
P
tl d
Helena
l
30s
Billings
g
Eugene
Boise
20s
<0
0s
0s
10s
Winnipeg
ip
Bismarckk
Pierre
P
10s
Mpls./St.
pls //St. Paul
P
Toronto
T
30s
Montreal
t
Ottawa
20s
20s
20s
Boston
t
Hartford
rtford
ew Y
New
Yorkk
30s
80s
A h
Anchora
Anchorage
Honolulu
Miami
U.S. Forecasts
Hi
46
83
45
70
40
39
46
57
51
45
55
51
44
41
50
Today
Lo W
34 s
62 pc
29 pc
45 s
25 c
13 pc
29 pc
34 pc
36 pc
24 r
42 pc
25 s
28 pc
25 pc
33 c
Tomorrow
Hi Lo W
40 18 c
83 61 pc
41 32 s
59 35 s
43 34 pc
26 12 s
40 31 pc
56 30 s
53 45 c
35 19 pc
56 38 s
46 16 pc
40 33 pc
27 11 sn
46 36 s
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Today
Hi Lo W
47 43 pc
52 46 c
74 57 pc
78 64 c
46 23 s
38 36 c
45 44 pc
83 66 s
77 65 s
55 48 sh
52 39 sh
Tomorrow
Hi Lo W
47 40 c
51 48 sh
76 55 c
82 67 pc
43 23 s
44 36 r
48 42 r
86 67 pc
78 66 s
51 45 pc
45 35 pc
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
40
41
84
68
46
85
70
79
52
54
86
74
74
39
34
88
48
91
75
47
85
34
52
86
94
64
47
33
38
34
37
Today
Lo W
38 c
31 sn
62 s
53 s
41 r
75 sh
55 pc
59 t
49 pc
33 s
77 pc
52 pc
46 pc
25 c
25 i
71 pc
46 pc
76 c
45 s
30 pc
75 pc
20 sf
33 s
76 t
69 pc
54 pc
39 c
19 sf
26 s
25 c
30 sn
Tomorrow
Hi Lo W
45 41 r
41 37 pc
84 61 s
66 59 pc
48 41 c
85 75 sh
72 53 c
82 63 pc
53 46 pc
55 31 s
84 76 c
78 54 s
75 46 pc
41 29 pc
28 23 pc
88 72 pc
50 44 c
92 75 pc
75 47 s
50 32 s
86 76 sh
35 23 s
50 36 s
87 77 pc
75 68 sh
65 57 pc
50 39 pc
28 24 sn
37 30 c
36 32 sn
39 37 c
4
5
6
7
8
18
23
38
42
29
30
31
43
40
44
36
41
45
48
46
49
50
54
32
35
39
47
53
13
25
28
34
37
12
22
24
27
33
11
19
21
26
10
16
20
52
9
15
17
51
55
56
57
58
59
60
61
63
65
66
67
68
69
70
64
HO HO HO | By Natalia Shore
Across
1 You might have
a shot at it
4 John Phillips and
Denny Doherty,
in a band
9 Cooper creations
14 Reminiscent of
15 What a horse
may win by
16 Cap
17 Mawkish memo?
19 Ice show venue
20 Dictator’s
underling
21 The very upright
Humpty Dumpty?
23 Port sight
25 “___ Sat on a
Sunny Bank”
(English folk
carol)
26 Quaking of
a kidnap
victim?
33 “He knows if
you’ve been
___ or good,
so be good for
goodness sake!”
69 They make lists
of those who are
good
47 Report on a
highly sought
stock?
28 Lav label
29 Philanthropist
Yale
70 “___ do you recall 30 Sun burst
the most famous
31 Lift, though not
reindeer of all?”
easily
Down
32
Baseball dinger
1 Scrooge snarls
33
Nativity
show
2 Heaps
sound
3 Tool with teeth
36 Word after gift
4 Dividends
or sales
5 “Chilly Scenes of 38 Reserve
Winter” writer
40 Heat, so to speak
Beattie
43 Rosie, e.g.
6 “That’s plain
45 Most of the
Lucayan
Archipelago
silly!”
7 About
62
8 Spotted
9 “The Gift of the
Magi” or “A
Christmas Carol”
48 In need of a lift
49 Await a decision
10 Irrefutable
52 Keep away from
prying eyes
11 Hook helper
53 Skip
12 Wenceslas, e.g.
54 “I’m in trouble
now!”
13 Male reindeer
50 Gardner of
“The Snows of
Kilimanjaro”
18 Fangorn Forest
race
56 Primo
51 Vixen, e.g.
22 Musical gift
34 It may be cold
or dry
52 Sedan in the
garage?
24 Exhibit wonder
57 First name in the
“Cheers” cast
35 Fleece,
perhaps
58 A matter of
degrees?
37 Father of
Phobos
62 Cry in a snowball
battle
39 Product of the
Army’s Project
PX
63 Bongo that’s
boring?
41 “Cheerio!”
65 Unidirectional
semiconductor
42 Michaelmas
daisy, e.g.
66 End of ___
44 Beat
68 Clear sky, to
poets
46 Needle
67 Boxing legend
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
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
Flurries
Ice
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
3
14
60s
Showers
60s
2
50s
Albany
A bany
b
Sioux
oux FFalls
20s
1
40s
Augusta
A g t
30s
Milwaukee
k
Buffalo
l
Detroit
t
70s
40s
Cleveland
Cl l d
Cleve
Chicago
Ch
Chic
g
Reno
Salt
City
lt Lake
L
C
City
Des
es Moines
Cheyenne
Ph
hil d lphi
80s
40s Philadelphia
Pit b gh
Pittsburgh
Sacramento
Omaha
h Springfield
p g
30s Denver
Washington
shington
h
D.C.
DC
San
n Francisco
90s
Indianapolis
di p
Kansas
50s CColor
Richmond
h
d
Colorado
d
Charleston
Charles
h
Cityy
100+
50s
Topeka
50s
LLas
Springs
p
St.. Lou
LLouis Louisville
L
Lou
ill
Vegas
Ve
Raleigh
i h
hit
60s Wichita
Nashville
h
Charlotte
h
60s
40s
Angeles
Los A
Ange
l
Santaa F
Fe
Columbia
C
l
b
Memphis
p
h
60s
L
Little
Rockk
Albuquerque
Phoenix
h
Oklahoma City
Warm
Rain
San Diego
70s Ph
Atlanta
A
Birmingham
h
Tucson
T
c
70s
Dallas
D
ll
70s
Ft. Worth
Cold
T-storms
70s
Jackson
k
El P
Paso
Jacksonville
Mobile
b
Austin
A
ti
New
ew Orleans
Stationary
70s
Snow
20s
Orlando
l d
Houston
Tampa
10s
San
an Antonio
70s
20s
viously reported.
When he stepped down, Penny
said in a statement: “My decision
to step aside as CEO is solely to
support the best interests of USA
Gymnastics at this time. It has
been heartbreaking to learn of instances of abuse and it sickens me
that young athletes would be exploited in such a manner.”
According to the agreement and
a person familiar with the matter,
Allred described Maroney’s claims
in a letter to USA Gymnastics in
late May 2016. At that time, there
were no public allegations against
Nassar, although he had been quietly forced out of USA Gymnastics
the previous fall after several national team gymnasts voiced concerns about his treatment.
Both parties agreed to wait until after the 2016 Olympic Games
to begin negotiations on the
claims, the person said. By the
time Maroney signed the agreement—on Dec. 30, 2016, according
to the settlement—Nassar was in
federal custody and USA Gymnastics was under fire for its handling
of sexual-abuse allegations, as dozens of women came forward with
allegations against Nassar and
coaches at gyms across the U.S.
The lawsuit alleges that Maroney was “forced to enter” into a
confidential agreement with USA
Gymnastics, “after suffering for
years from psychological trauma
of her sexual abuse at the hands of
Nassar, and in need of funds to
pay for psychological treatment
for her worsening psychological
condition.”
The settlement included nondisclosure and non-disparagement
provisions, with a fine of more
than $100,000 for violating either.
The lawsuit seeks to invalidate
those provisions under California
law, which prohibits confidential
settlements in a civil matter that
could be prosecuted as a felony
sex offense.
Maroney’s lawsuit comes at a
pivotal time for USA Gymnastics,
as it seeks to redeem its reputation and defend itself against multiple lawsuits related to Nassar. In
light of Maroney’s settlement payment, scores of young women
could have claims for relief.
As national team physician over
a 25-year-period, including four
Olympic Games, Nassar treated
hundreds of elite gymnasts, at national and international competitions and during training camps at
the Karolyi Ranch in Texas.
Some of USA Gymnastics’ biggest sponsors have dropped the
organization. Hershey’s said last
week it will allow its contract to
lapse, while Procter & Gamble said
the company would evaluate its
contract next spring, in light of
the sexual abuse allegations. Under
Armour is ending its outfitting
deal with the governing body two
years early, according to a person
familiar with the matter.
—Louise Radnofsky and Sara
Germano contributed to this
article.
55 Libya neighbor
59 Impress greatly
26 Like Arctic
winters
60 Doozy
27 Thomas
Campbell’s
“___ Winter”
64 Catering
container
61 Throw out
Previous Puzzle’s Solution
A
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S
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A
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O
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W J O
A P
WW H
H E Y
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WB A
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T I O
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B E E
L B E 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.
Thursday, December 21, 2017 | A15
OPINION
T
his rallies, those unscripted
moments are also when he’s
most likely to generate unnecessary controversy. In July he
trashed his predecessor at the
nonpartisan Boy Scout Jamboree; at an August rally in Phoenix he defended his remark
that “both sides” were to
If he wants to help
Republicans, his best
bet is to start acting
like a president.
blame for violence at the Charlottesville white-power protests; and at a September rally
for Alabama Sen. Luther
Strange, Mr. Trump said that
he “might’ve made a mistake”
by endorsing him. What candidate wants to deal with that
kind of fallout?
If the White House tries to
re-create last year’s presidential campaign in 2018 by holding one raucous rally after another, it will make Mr. Trump
feel beloved while magnifying
Republican losses.
If the president wants to
help his party, he should lower
his political profile. Early next
year, he should raise gobs of
money for candidates at events
closed to the press. Then in
the summer and fall, he should
attend fundraisers for the Republican National Committee,
the state parties and the GOP’s
campaign committees, again
closed to the press.
no
he White House “is planning a full-throttle campaign to plunge the
president into the midterm
elections,” according to the
Washington Post. Aides insist
that President Trump “wants
to travel extensively and hold
rallies” and “is looking forward
to spending much of 2018 campaigning.” If true, this plan
should be shelved. Making the
midterms about Donald Trump
is a very bad idea.
To begin with, he has the
worst ratings in his first year
of any modern president. Mr.
Trump’s approval in the Gallup
poll is 35%. By comparison,
President Obama ended his
first year at 50% and Bill Clinton at 54%, and both watched
their party get shellacked in
the midterms. Even George
H.W. Bush, at 73%, saw a few
seats lost in 1990.
If Mr. Trump barnstorms for
Republican candidates, his unpopularity will rub off on them.
Alabama’s recent Senate race
may be a special case because
of the accusations against Roy
Moore. But the fact remains
that the president could not
carry Mr. Moore to victory. The
1.3 million votes cast in this
single special election exceeded the 1.2 million ballots in
Alabama’s 2014 midterms.
Democratic turnout nearly
reached presidential-election
levels without a corresponding
increase for the GOP.
While Mr. Trump draws energy from adoring crowds at
By Lou Weiss
F
how to win. And it taught him
that losing is simply hell.
This week’s tax reform is a
win. The health-care fiasco
that preceded it was hell.
Rather than settle for life
as a polemicist, Kemp operated inside the establishment
because that’s where the
votes were. To get a win,
Kemp, with no serious sacrifice of principle, worked with
Ronald Reagan is the
patron saint, but
don’t forget Jack
Kemp’s central role.
everyone in Washington—
conservatives, moderates and
Democrats, including former
Sen. Sam Nunn and Senate Finance Committee Chairman
Russell Long, who supported
the 1981 reform.
Democrats are in a Scroogelike mood, with Nancy Pelosi
calling the tax legislation “the
worst bill in the history of the
United States.” So here’s another holiday lump: If Barack
Obama had pursued a bipartisan effort in 2011 to cut the corporate tax rate, Hillary Clinton
would be president now rather
than Donald Trump.
The corporate rate cut, to
21% from 35%, is the bill’s
most potent growth element.
In 2011, Paul Ryan, then chairman of the House Budget
Committee, said a proposal to
overhaul America’s corporate
tax system was achievable
that year. “It’s possible,” Mr.
Ryan said. “That’s the one
thing I think we have a shot at
bipartisanship.”
Incredible in retrospect,
New York Sen. Chuck
Schumer was working with
Ohio Republican Rob Portman on a reform of corporate
and international taxes. The
effort revived in 2015, with
the idea that some of the revenue gained from businesstax reform would be dedicated to spending on highway
construction.
But the Obama-RyanSchumer-Portman corporate
tax cut died because Mr.
Obama was obsessing over
“inversions”—corporations
avoiding the world’s highest
corporate tax rate by fleeing
to foreign jurisdictions. Mr.
Obama wouldn’t do any deal
without a large net tax increase. That was when bipartisanship on tax legislation
died, not this year.
A corporate cut in the second Obama term would have
produced evidence of rising
economic growth and confidence in the years before
2016, rather than deferring it
until the first year of the
Trump presidency.
That suppression of pentup economic growth—a consequence of Mr. Obama’s antipathy toward the private sector
—likely cost Mrs. Clinton the
presidency. The now-famous
Trump Democrats in Michigan, Pennsylvania and Wisconsin had no reason to vote
for an extension of the flat
economy.
Will a rising economic tide
lifts all ships now? Not in politics. Some ships will sink.
Write henninger@wsj.com.
Keep Trump off the Trail in 2018
n-
By Karl Rove
Lester Thurow asserted: “The
engines of economic growth
have shut down here and
across the globe, and they are
likely to stay that way for
years to come.” That was
wrong. The economic expansion that followed got Reagan
re-elected by a landslide in
1984 and validated arguments
for the ’86 tax cut.
This week, in a perfect echo
of nearly 40 years ago, the
Democratic Party’s house
economists and press pundits
are dripping doubt and skepticism on the tax cut of 2017.
But unless the current economy’s strong growth, earnings, job creation and measures of confidence are fake,
the odds are good that this tax
cut will have the same propulsive, upward effect on Mr.
Trump’s presidency—if the sirens singing songs of trade
war into his ear don’t pull him
onto the rocks.
Kemp was considered a
maverick, an almost messianic
economic optimist. Republican
and conservative politics of
late has had its own version of
messianism, expressed as rage
at the party’s Washington establishment of Mitch McConnell and Paul Ryan, or as refusal to be associated with the
Trump presidency.
Jack Kemp was a nonstop
ideological talker who led his
own brand of policy-based insurrection. But he wouldn’t
have joined anyone’s teardown-the-temple opposition.
Kemp’s football career
taught him how to bang hard
and mix it up, but it also taught
him something relevant for any
serious political combatant:
Most of his time should be
devoted not to politics but policy, especially things that will
boost his approval numbers.
The fact remains that Mr.
Trump’s personal behavior
weighs down his ratings. His
policies—tax cuts, deregulation, energy exploration, strong
defense, seriousness on immigration—are more popular
then he is, especially when they
are explained without his name
attached.
Republicans cannot keep
Congress simply by appealing
to Mr. Trump’s most avid
fans. The party must unite an
energized base with independent voters. It must also attract those Americans who
were skeptical about Mr.
Trump in 2016 but temporarily set aside their doubts to
vote for the change he represented and against the prospect of Hillary Clinton in the
Oval Office.
The quip that the way forward is to “Let Trump be
Trump” only gives advisers an
excuse to ignore the president’s divisive rhetoric, needless personal attacks, narcissistic focus on ephemera,
indefensible mangling of facts,
and childlike need for constant
praise.
A better goal would be to
“turn Donald Trump into President Trump.” The hope (admittedly rather remote now) is
that Mr. Trump could somehow work to become a unifying leader and let go of his
seething grievances. Then he
could explain what he’s done
and wants to do, emphasizing
how his agenda will positively
affect the lives of ordinary
people.
Mr. Trump should also play
down special counsel Robert
Mueller’s investigation. The rumors of the president’s rage
about its unfairness only encourage Democrats and their
media allies to pile on, while
causing many Americans to
wonder what he’s got to hide.
The less said about Mr. Mueller
and the more confidence expressed about the investigation’s outcome, the better.
Next fall, when the 2018
campaign heats up, the president should go to Europe or
Asia. Mr. Trump’s foreign trips
have shown that, like most
presidents, he appears more
substantial and less partisan
when he’s abroad.
If Republicans are to have
any hope of holding Congress
after the midterms, Mr. Trump
must allow the political spotlight to shine on individual
GOP candidates while he does
a much better job of tending to
his presidential responsibilities. Stepping back from the
spotlight will be harder for Mr.
Trump than any previous president. But that is the only path
to something that approximates a victory for Republicans in 2018.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
In Praise of Ticket Scalpers
Pittsburgh
ew occupations are as
market-oriented as reselling tickets. The
profession is an old one, going back as far as gladiator
contests in the Roman Coliseum. Like many old professions, it doesn’t have the
best reputation. That’s unfair. Whether helping housewives to see “Hamilton” or
working the mean streets
outside a sporting venue,
these hardy folks add value
by making markets.
The internet has disrupted
almost every business, and
scalping is no different. The
constant fluctuations with
which a scalper deals are not
unlike dynamic pricing of airline tickets, whereby fliers pay
different prices for the same
seats. He just does all the calculations in his head.
I’m a third-generation
Pittsburgh Steelers fan tasked
with managing my family’s
The Serfs
Of Appalachia
Ramp Hollow
By Steven Stoll
(Hill & Wang, 410 pages, $30)
I
live in Roanoke, Va., three hours east of the Appalachian
coalfields, in a railroad city turned health-care hub. Four
years ago, I spent a few days reporting from the poorest
county in West Virginia, one of the poorest states in the
nation. The mayor of War (pop. 800, give or take) had been
killed by an in-law’s brother in a drug-fueled rage months
before. At the time, the mayor had been working in earnest to
clean the town’s water, improve access to drug treatment and
attract new industry, but as one unemployed young woman
told me: “Not enough people here can pass a drug test.”
When I returned to central Appalachia a couple years later,
its prospects seemed even worse. Schools had shuttered, and
even a Walmart had closed. Uninsured people who’d kicked
addictions (and some who hadn’t) were dying of untreated
Hepatitis C. The book on the tongues of all the activists I
encountered was J.D. Vance’s “Hillbilly Elegy.” Appalachians
fumed about the memoir, which
they felt looked down on them as
unemployable freeloaders without acknowledging the historic
underpinnings of the economic
tragedy that had crippled them.
Worst of all, the author was from
Ohio—not even a real hillbilly!
I kept thinking of their
critiques as I read historian Steven
Stoll’s stunning screed “Ramp
Hollow: The Ordeal of Appalachia.”
In it, everything the real hillbillies
wanted Mr. Vance to acknowledge
is laid out majestically, if not always
grippingly. Named for a place near a
once-profitable but now abandoned coal seam
outside of Morgantown, W.Va., “Ramp Hollow” offers a granular chronicle of how wealth, poverty and inequality accrete,
layer upon generational layer. “If poverty on such a scale is so
misunderstood, if it appears to have no historical origin, then
it can only be cast back upon the poor as their own failure,”
Mr. Stoll writes. Instead he portrays centuries of exploitation
by predatory (and often absentee) capitalists and the corrupt
local politicians that kowtowed to them.
The villain shape-shifts in Mr. Stoll’s story. Early on it is
Alexander Hamilton, as he sets out to organize a national
economy by taxing the Scots-Irish mountaineers’ whiskey and
inspires a rebellion. Later it is crooked West Virginia judges
and officeholders who line their pockets with coal-company
funds in exchange for bending laws in the companies’ direction
and looking the other way.
Citing a breadth of documents, from archival letters and
maps to business records and fictional accounts, Mr. Stoll, a
professor of history at Fordham University, traces the assault
on Appalachia all the way back to the system of enclosure in
England, through which (beginning in the 1500s) landed gentry
persuaded local courts to convert communal lands into their
own private property. By casting the land grabs as “progress”—a repeated theme here—British elites laid claim to
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Jack
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spent his life
as an all star.
A
congressman
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By Daniel
AFL champiHenninger
onships and
was the coauthor of the Kemp-Roth tax
cuts of 1981, signed by Ronald
Reagan.
Reagan is cited all the time
as the patron saint of growthenhancing tax cuts, and that is
true. But Jack Kemp is the
godfather of this week’s tax
reform, the third passed by
Congress in 36 years and now
on its way to Donald Trump’s
signature.
Kemp’s legacy as a Republican reformer is worth recalling this week as we assess the
significance of this tax bill.
Jack Kemp was a regular
visitor to The Wall Street
Journal’s editorial board,
which worked with him to
create the intellectual underpinnings of the first two
great tax reforms, in 1981 and
1986, based on the idea—as
now—that reducing the tax
burden on businesses and individuals would create incentives to work harder, save
more and invest more widely.
A rising tide.
Back then, everyone associated with these ideas was regarded as a heretic. Never forget that conventional wisdom
in 1981 regarded Reagan as a
Hollywood dolt.
Writing about the global
outlook in 1982, economist
BOOKSHELF | By Beth Macy
ly
.
The Godfather of Tax Reform
Heinz Field seats. Negotiating
with relatives about who gets
to use the tickets for which
games requires intuition and
delicacy. Pro tip: Taking preseason tickets increases your
chances at getting consequential late-season games.
My guy, ‘Matt,’ has
a dynamic pricing
algorithm in his head.
This past weekend brought
the New England Patriots to
the ’Burgh. With one of our
group in Florida, another in a
luxury box, and the weather
calling for rain and cold, it fell
to me to dispose of four unused tickets. I listed them below their market value on the
official Steelers/Ticketmaster
ticket exchange. Their fancypants algorithms couldn’t
make a match, so I went old
school.
Let’s call my ticket buyer
Matt. (I can’t use his real fake
name, as he considers any use
of his nom de scalp a violation of intellectual property.)
Matt claimed he remembered
me from a previous transaction and opened up. He complained that amateurs were
making his life harder than it
needed to be. The rise of barcode smartphone tickets and
home printouts has him frustrated. Nobody knows anymore what’s real or what the
guys at the stadium gate will
accept.
For these reasons, Matt
wanted only what I had—
real-deal paper tickets. Before paying me, he whipped
out a laptop to check I wasn’t
passing off elaborate forgeries. A little bird told me the
$165 tickets I sold him for
$350 went the next day for
$460. I call that a respectable
markup. I’m allowing for his
overhead, which included a
warm coat, good sneakers
and the laptop.
Like many businessmen,
Matt is a risk-taker. When he
buys tickets, he’s betting they
will sell. If the inventory
doesn’t move, the price gets
cut. His preference is to play
arbitrageur. Ideally the resale
is already arranged before he
lays out any cash.
Matt is a hustler. He has
to be. He’s put one daughter
through law school and a
second is currently in premed. This whole disintermediation trend has him considering early retirement,
but if you’re looking for a
few good seats on the visitors’ side near the 45-yard
line just a few rows below
the club level for the New
Year’s Eve game, you’ll find
Matt on Pittsburgh’s North
Side.
The Steelers are playing
the Browns, so the action
outside the stadium is likely
to be more exciting than
what goes on inside.
Mr. Weiss is a carpet
salesman.
The author’s culprits for the plight of coalcountry residents include local politicians,
absentee landlords and Alexander Hamilton.
fields where peasants had herded cattle and planted food. To
feed their families, he contends, peasants had no choice but to
join the cash economy, but wages were kept at starvation
levels. Mr. Stoll argues that land-granted American Revolutionary elites dating back to George Washington set up a
similar, British-inspired system in Appalachia, which they
largely controlled via state-sanctioned absentee ownership
from their northeastern homes.
A new form of enclosure, as Mr. Stoll sees it, was jumpstarted in America’s Southern mountains during the late 1800s,
sparked by the advent of locomotives as railroads began carting
lumber and coal out of mountain hollows. The homesteaders
and squatters who had been feeding themselves fine for a
century were forced to evacuate their homes or sell them at
rock-bottom prices and move, Joad-like, into coal camps. Some
of the same out-of-state industrialists who owned the railroads
developed coal mines and logging companies. They shrewdly
hired local fixers to sort through courthouse deeds and out-ofstate lawyers to exploit mountaineers with scant financial
knowledge by intimidating them into selling their land.
More land was seized to create the Blue Ridge Parkway in the
1930s for the benefit of out-of-state tourists. Then the
Appalachian Regional Commission was formed in the 1960s,
ostensibly to aid War on Poverty efforts, but, according to Mr.
Stoll, the administrators were culturally dismissive of the locals,
whom they saw as backward. The commission, like other local
authorities, was also closely aligned (or misaligned) with the coal
industry. Summing up what happened to Appalachia as a kind of
“slow violence,” the author argues that the region’s dependence
on coal brought stagnation rather than human betterment.
Mr. Stoll is an affable academic, happy to dwell in endnotes
but equally adept at crafting metaphorical imagery. (“From six
miles above the earth the country looks like wrinkled paper.”)
But at several points in the book I wished for more narrative
juice. While his economic analysis of the Whiskey Rebellion of
the 1790s is well done, we learn little about what happened to
the farmers fighting on the ground. Sometimes you just want
to know what time it is, not how to make a watch.
The author ends by suggesting several solutions, offered in
the form of a “thought experiment” that would give smallscale farmers and entrepreneurs renewed access to common
lands, managed by the Agriculture Department and owned by
land trusts. Education and social services would be paid for by
raising taxes on the 1% and on companies that have moved
their operations overseas. If this plan seems one note shy of a
Pete Seeger sing-along, well . . . it is. Donald Trump, whom
many Appalachians voted for, is taking the country in the
opposite direction, no matter how Trumpian the idea of an
“industrial abandonment tax” might seem to be.
“Ramp Hollow” should be read, however, not for its policy
proposals but for the compassion and historical attention that
Mr. Stoll devotes to this long-maligned region. His aim is to
inspire people to move and think outside the safety of their
urban bubbles. The academic may share some territory with
J.D. Vance—both studied at Yale—but Mr. Stoll works harder
to transcend stereotypes, by encouraging Appalachians to
improve their lot, not by blaming themselves but by reclaiming
political power.
Ms. Macy is the author of “Factory Man,” “Truevine” and
the forthcoming “Dopesick: Dealers, Doctors, and the Drug
Company That Addicted America.”
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.
A16 | Thursday, December 21, 2017
* *
THE WALL STREET JOURNAL.
OPINION
C
Tax Reform Take 2: The States
T
Federal Reserve Faces Many Huge Problems
In “A Booming Economy Will Challenge the Fed” (op-ed, Dec. 14), Phil
Gramm and Thomas R. Saving worry
about the potential for the high level
of bank reserves to provide excessive
fuel for loan creation. Higher levels
of borrowing and spending could
then increase inflation rates and lead
to monetary tightening—derailing the
economic expansion.
These concerns reflect a fundamental misunderstanding of how the
banking system operates. Banks don’t
lend out reserves. Specifically, when
a bank makes a loan, it increases its
assets (the loan) and its liabilities
(the deposit from the loan). These
are bookkeeping entries made “out of
thin air” and they are made with no
reference to reserves or deposits. If a
bank did then need additional reserves to meet reserve requirements
(obviously not an issue currently),
the Federal Reserve would supply
them as necessary.
The level of bank-loan activity will
continue to be a function of loan demand, credit standards and loan
profitability, and to be unaffected by
the level of bank reserves.
CHARLES H. DUBOIS
Bronxville, N.Y.
The authors claim that paying interest on excess reserves enabled the
Fed to purchase a massive amount of
securities “without significantly expanding the money supply.” But the
fact is that the M1 money measure
(which is the only money measure directly linked to bank reserves) increased dramatically from $1.6 trillion in March 2009 to $3.6 trillion in
October 2017. This happened because
banks made all loans that paid a
“risk-adjusted” interest rate higher
than the risk-free rate the Fed pays
banks to hold excess reserves. Indeed, bank assets increased by $4.5
trillion over the same period. The
Fed increased the rate it pays banks
to hold excess to 1.5% on Dec. 15.
This won’t slow down M1 growth because bank lending rates have increased in lockstep with the rate the
Fed pays banks.
Their inflation analysis also ignores the fact that it will be extremely difficult to reduce M1 if inflation begins to accelerate. Banks’
lending and investing and the corresponding increase in M1 caused required reserves to increase dramatically to $2.1 trillion in October 2017.
Hence, the Fed can reduce excess reserves to their historically low levels
by selling less than $2 trillion of its
$4.4 trillion portfolio. Sales beyond
this point will force banks to call in
loans. A contraction of the banking
industry of any significant amount
would have devastating consequences
for the economy.
DAN THORNTON, PH.D.
Valley Park, Mo.
Excess reserves weren’t created
because “[the Fed] started to pay interest on excess reserves” but because of the method the Fed used to
pay for the securities it purchased.
For every dollar of securities purchased, a comparable dollar of excess
reserves was created. Moreover, the
authors supposition, “If the Fed
could find just the right mix of selling more assets and lowering the
rate it pays on excess reserves, it
could theoretically end up reducing
its balance sheet and reducing bank
reserves without either slowing economic growth or igniting inflation”
means they don’t understand that
the Fed is allowing its portfolio to
gradually pay down because it can’t
sell it. The Fed doesn’t have enough
capital to cover the loss that would
be incurred. Moreover, it can’t lower
the rate paid on excess reserves because it is its primary monetary tool
being used to set the upper bound of
the fed-funds rate.
JIM KUDLINSKI,
Overland Park, Kan.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ongress passed the most sweeping tax which is more punitive than even New Jersey’s
reform since 1986 on Wednesday, and 8.87% that hits households making more than
with any luck that success for the coun- $500,000. Wisconsin (7.65%), Idaho (7.4%), South
try will trigger a new reform
Carolina (7%), Arkansas (6.9%)
After federal success, and Nebraska (6.84%) are
debate in many states. To wit,
how much will they have to
Donald Trump-voting
the next reform targets among
cut income-tax rates to retain
states that also make the highare high-tax states.
and attract the high-income
tax list.
earners who finance so much
Remarkably enough, some
of their state budgets?
high earners in Illinois will exYou can figure out who most needs reform perience a cut in their marginal rate, at least
by the decibels of protest. Amid other apocalyp- as long as GOP Gov. Bruce Rauner can stop his
tic warnings, New York Gov. Andrew Cuomo last Democratic legislature from raising taxes above
weekend declared that the GOP bill’s limit on the state’s 4.95% flat rate. Yet taxpayers in Indithe state-and-local tax deduction will trigger ana will get a bigger net tax cut because the
“an economic civil war” between high- and low- state’s top income-tax rate is 3.23%.
tax states. California Governor Jerry Brown has
This ought to put pressure on high-tax Midlikened Republicans to “mafia thugs” while Mr. western states such as Wisconsin, Iowa and
Cuomo calls the bill a “dagger at the economic Minnesota to reduce their rates. If Governor
heart of New York.” By heart, he apparently Scott Walker wants another policy victory as
means the state’s top earners who pay for Al- he runs for re-election next year, he should probany’s ever-higher spending.
pose an across-the-board tax-rate cut in JanuThe truth is that few taxpayers even in high ary to keep Wisconsin competitive.
tax states will be hurt because they won’t need
Messrs. Brown and Cuomo know that limita deduction beyond the $10,000 state-and-local ing the deduction will increase the existing rate
cap in the bill. Tax
divide between highwriters estimate that
and low-tax states.
only about 5% of States of High Taxes
New York, New Jersey
households will even The states with the highest marginal income-tax rates
and Connecticut have
itemize their deduc- and the income threshold at which the top rate hits for
been losing billions of
tions because the bill couples filing jointly
dollars each year in adnearly doubles the
justed gross income
Top Rate
Income Threshold
standard deduction to
from high earners flee13.3 %
$1,074,996
$24,000. Most affluent California
ing to lower tax climes
households who do New York
like Florida. Nevada
12.7
2,155,350
itemize will also be
will become an even
9.9
250,000
held harmless because Oregon
more attractive tax ha9.85
261,510
of tax-rate reductions. Minnesota
ven for wealthy CaliBut the tax math Iowa
fornians.
8.98
70,785
will be tricky for many
The problem is
8.97
500,000
high-earners in states New Jersey
more acute when you
with the highest tax Vermont
consider that the top
8.95
416,700
rates. The bill reduces Hawaii
1% of earners pay
8.25
96,000
the top federal tax rate
nearly 50% of state in7.65
329,810
to 37% from 39.6% and Wisconsin
come taxes in Califorincreases the thresh- Idaho
nia and New York, and
7.4
21,810
old at which it kicks in
37% in New Jersey.
Maine
7.15
74,999
to $600,000 from
States may experience
7.0
14,650
$470,000 for couples South Carolina
significant budget carfiling jointly. Our Connecticut
nage if more high
6.99
1,000,000
friend Don Luskin did
earners defect. To
6.9
17,600
the math and says that Montana
head off a high-earner
high earners in states Arkansas
revolt, Mr. Cuomo
6.9
35,100
with top rates exceed- Nebraska
could seek to eliminate
6.84
59,660
ing 6.56% could see
the millionaire’s tax he
6.6
60,000
their tax bills increase. Delaware
campaigned against in
The nearby table Source: Tax Foundation, state data
THE WALL STREET JOURNAL 2010 but has repeatshows the 17 states
edly extended. Mr.
with top income-tax rates exceeding 6.56%. The Brown could campaign to repeal the 3% surfour with the highest income tax rates have charge on millionaires he championed in 2012.
Democratic Governors—California, New York,
On the political evidence so far, they will do
Oregon and Minnesota—and liberal political no such thing. Democrats instead plan to use the
cultures heavily influenced by public unions. elimination of the state-and-local tax deduction
The 12.7% rate is for New York City and the rate to bludgeon Republicans in the 2018 elections,
for the rest of the state is still high at 8.82%. even as they continue to drive their high earners
But Republicans control the governorships and out of state. But the smarter states and politilegislatures in six of the 17 states.
cians will recognize reality and reform their tax
Iowa ranks fifth with a top rate of 8.98% that codes to make their states more taxpayer
hits at a mere $70,785 for married couples, friendly.
LETTERS TO THE EDITOR
ly
.
REVIEW & OUTLOOK
Obama’s Pass for Hezbollah
no
n-
he Iran nuclear deal was the Holy Grail into a political party. Exposing it as a transnaof Barack Obama’s second term, and tional crime syndicate would upset the Iraniit’s no secret he subjugated other pri- ans and damage the Administration’s ability
orities and relationships to
to sell his nuclear deal to a
Charges that he killed a skeptical public.
get it. But now come allegations that he also killed a U.S. probe of the terror group
Obama Treasury official
investigation into drug runKatherine Bauer told the
to get his Iran deal.
ning by the Iranian-backed
House Foreign Affairs Comterrorists of Hezbollah.
mittee that under the Obama
Josh Meyer of Politico reAdministration Hezbollah-reported Monday that former U.S. officials say lated “investigations were tamped down for
the Obama Administration quashed a Drug En- fear of rocking the boat with Iran and jeoparforcement Administration investigation into dizing the nuclear deal.”
Hezbollah’s transnational crime networks. SeAn unidentified former CIA officer told Mr.
nior Obama officials deny it, but Politico re- Meyer that “during the negotiations, early on,”
ports compelling evidence.
the Iranians “said listen, we need you to lay off
After 9/11 the DEA launched investigations Hezbollah, to tamp down the pressure on
into Venezuelan crime syndicates, links be- them, and the Obama administration acquitween Colombian drug-traffickers and Leba- esced to that request. It was a strategic decinese money-launderers, and the “suspicious sion to show good faith toward the Iranians”
flow of thousands of used cars” from the U.S. to reach an agreement.
to Benin, Mr. Meyer explains. The U.S. military
Three major suspects involved in weapons
was also investigating links between Iran and and drug trafficking got away. Ali Fayad, a LebShiite militias with improvised explosive de- anese arms dealer alleged to work for Russia
vices that killed hundreds of U.S. soldiers. “All supplying weapons in Syria and Iraq, was arof these paths eventually converged on Hez- rested in the Czech Republic in 2014. He had
bollah,” he writes.
been indicted in the U.S. but the AdministraBy 2008 the DEA had “amassed evidence that tion “declined to apply serious pressure on the
Hezbollah had transformed itself” into a global Czech government to extradite him,” says Mr.
crime syndicate “that some investigators be- Meyer. He was sent to Beirut where he continlieved was collecting $1 billion a year from drug ues to ply his trade.
and weapons trafficking and money launderAlleged Venezuelan drug kingpin Hugo Caring,” Mr. Meyer reports. DEA’s Project Cassan- vajal was arrested in Aruba in 2014. Venezudra was born to take down the Hezbollah opera- ela’s close alliance with Iran is no secret and
tion by busting its “innermost circle.”
reeling in “the chicken,” as Carvajal was
But according to interviews with dozens of known, would have generated key intelligence
Cassandra participants “and a review of court about cocaine trafficking to the U.S. and North
documents and records,” he writes, Obama offi- Africa. The Netherlands mysteriously intercials “threw an increasingly insurmountable se- vened and returned him to Venezuela.
ries of roadblocks in its way.” David Asher, a
When Colombia arrested Walid Makled, a
Pentagon specialist in illicit finance who helped Syrian-born Venezuelan who was alleged to be
launch and supervise Cassandra, told Mr. Meyer shipping ten tons of cocaine to the U.S. each
that the Administration “serially ripped apart month, Colombian President Juan Manuel San[the] entire effort . . . from the top down.”
tos refused U.S. extradition requests and sent
Mr. Obama’s defenders want you to believe him to Venezuela. Mr. Obama repaid Mr. Santhat the DEA agents are sore losers in a Wash- tos by backing his amnesty for the FARC, the
ington turf war. But there are a number of rea- largest drug cartel in the Americas.
sons why these charges ring true.
Mr. Meyer reported that former Obama offiCassandra was closing in on Hezbollah as cials assured him that they had not “derailed
Mr. Obama was trying to complete his Iran nu- any actions against Hezbollah or its Iranian alclear deal. John Brennan, Mr. Obama’s coun- lies for political reasons.” But many governterterror chief who later led the CIA, had ar- ment officials believe otherwise, which is why
gued in May 2010 that Hezbollah was evolving this warrants a congressional investigation.
Scrolls Contradict the Palestinian Narrative
In “Who Owns the Dead Sea
Scrolls?” (Houses of Worship, Dec.
15), Charlotte Allen opens our eyes
to cognitive dissonance about the
willful dishonesty of the Palestinian
Authority (PA) and those who espouse its maximalist cause, the dismantling of the State of Israel.
Ms. Allen reports that the Palestinian Authority (and the Kingdom
of Jordan) claim ownership of the
Dead Sea Scrolls because the PA
considers these artifacts, all written by Jews of the intertestamental
Masterpiece Cakeshop Might
Follow the Kosher Example
In response to your editorial “Let
Them Not Bake Cake” (Dec. 4),
Charles D. Eden writes, “Colorado officials are trying to force Masterpiece Cakeshop owner Jack Phillips
to act against his faith, his conscience, his sacred honor” (Letters,
Dec. 11). I disagree.
My father, and his father before
him, were kosher caterers—they only
served kosher food. This was an expression of their religion and their
desire to provide service to people
who maintained certain religious customs. You could no more ask them to
serve pork at a wedding than you
could go into a shoe store and ask
them to sell you a hat. However, they
would gladly hold a wedding reception for people who didn’t themselves keep kosher, or for that matter
people who weren’t Jewish. Their religion dictated what they sold, not
who they sold it to.
If we allow the sellers’ religious
beliefs to dictate who they serve,
rather than what they serve, then
some Catholic cake bakers might not
bake wedding cakes for those who
were divorced; where would we draw
the line on who could buy these wedding cakes?
Everyone has the right to select a
business that allows them to act according to his own faith, conscience
and sacred honor, but once he opens
his doors to the public, he must serve
the people who come through those
doors.
BOB DENMARK
East Hanover, N.J.
era (225 BCE to 40 CE) in Aramaic
and Hebrew, were buried in their
territory. At the same time, the
Palestinian Authority vociferously
and ceaselessly makes the case that
there never was a Jewish presence
in this land. Its historically disreputable efforts in Unesco and other
U.N. agencies are notorious in this
respect. To Palestinian fabulists,
BDS militants and neo-anticolonialist sympathizers, Jerusalem and
the lands of the Old Testament
were never the ancient states of
the Jews.
Can it be true that tangible evidence of Jewish presence in this ancient land belies the Palestinian Authority’s abuse of history? With this
hypocrisy, the PA offers the hottest
manifestation of chutzpah.
LARRY GREENBERG
Skokie, Ill.
Whether He Fires Mueller
Or Not, Trump Is in a Pickle
Karl Rove exhibits touching naiveté in his commentary on the
Russia collusion probe (“Why
Trump Would Regret Firing Mueller” (op-ed, Dec. 7) when he posits
that: “If Mr. Trump has done nothing wrong . . . then he has nothing
to fear.” Beyond the often-claimed
ability of a prosecutor to indict
the proverbial ham sandwich, the
railroading of Tom DeLay, Ted Stevens and Scooter Libby by overzealous prosecutors certainly
should give Mr. Trump pause.
All of these Republicans ran
afoul of left-leaning ideologues
who used questionable or downright illegal means to lay them
low. Given what we are increasingly finding out about the team
that is investigating the Russia collusion, it is hard to credit that
they wouldn’t stoop to the same
tactics to inflict a similar fate on
the president.
KLAUS CHAVANNE
LaGrangeville, N.Y.
Pepper ...
And Salt
THE WALL STREET JOURNAL
CORRECTION
An editing error mistakenly introduced the name of Daniel Trigoboff
as the author of part of a letter written by Richard Wilkins (“On Disentangling the Palestinians and Israel,”
Dec. 14). Dr. Trigoboff did not write
any of the letter.
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“So, if you’ll just bring me the 3-D
printer, I can take it from there.”
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.
Thursday, December 21, 2017 | A17
OPINION
R
onald Reagan’s wisdom
often went unappreciated
in his day. In a 1982 address to the British Parliament, he presented a
strategy to confront Soviet communism and other forms of dictatorship
by championing American values.
Commentators deemed it “naive”
and “wishful thinking”—not to mention dangerous—to talk of advancing
American principles and ideals. Why
provoke hostility by trumpeting the
superiority of democracy?
Contrary to his isolationist
reputation, the president
echoes Reagan in affirming
America’s founding values.
This Monday President Trump
gave a speech outlining his National
Security Strategy. Like Reagan 35
years ago, Mr. Trump celebrated the
U.S. as a force for good in the world
and cited America’s founding values
as a powerful advantage against repressive regimes. The NSS document, which the White House released the same day, asserts the
administration’s determination to
protect American sovereignty by “defending the institutions, traditions
and principles that allow us to live
in freedom.” It identifies America’s
fundamental source of strength: “we
the people.”
Those expecting a more isolationist approach or a retreat from global
engagement, especially with regard
to championing American values
such as democracy and individual
rights, may be wondering whether
Mr. Trump’s fundamental outlook
has changed. What they need to understand—and the NSS makes
clear—is that in today’s brutishly
competitive world, in which rivals
are actively seeking military, economic and political gains at U.S. expense, the American idea still reigns
as the nation’s greatest competitive
asset.
Prior administrations have used
the NSS document primarily as an
internal plan for coordinating policies among government agencies
and departments. That Mr. Trump
chose to present its key points directly to the public shows that he
recognizes the global appeal of the
American model of governance. Acknowledging that “we are not going
to impose our values on others,” the
document nevertheless affirms that
the U.S. “will encourage reform,
working with promising nations to
promote effective governance, improve the rule of law, and develop
institutions accountable and responsive to citizens.”
No one would accuse Mr. Trump
of mushy sentimentalism when it
comes to foreign policy. If he now
embraces America’s founding principles as an advantage in the global
President Trump outlines his National Security Strategy Monday.
arena, it is because he understands
the potency of success as a countermeasure against ideologies hostile to
freedom. He appreciates the value of
a good brand—and America’s trademark represents the values that distinguish it from authoritarian regimes that treat their citizens as
expendable.
The NSS document provides an
operational blueprint for addressing
specific threats to the U.S. and its
citizens. It lays out four basic “pillars” aimed at protecting the homeland, promoting American prosperity, preserving peace through
strength, and advancing American
influence in the world. That last pillar defines the moral impact of
America’s presence in the global
ObamaCare’s Failed Cost Controls
Medical spending keeps
rising, outpacing both
general inflation and
population growth.
no
America’s health-care spending
rose 4.3% in 2016, according to federal data released earlier this month.
That is the third straight year it outpaced economic growth. Total health
spending last year was 17.9% of gross
domestic product, up from 17.2% in
2013.
Some defenders of the ACA claim
the nation’s health-care spending has
slowed since 2010. They compare the
nominal growth rate before and after
ObamaCare became law. Health
spending grew at an average of 5.7%
a year from 2003-10 and then slowed
to 4.3% from 2010-16.
But this comparison of unadjusted
nominal figures is misleading for
two reasons. First, inflation has been
low the past several years in the
wake of the Great Recession. After
adjusting for inflation, national
health spending grew on average
2.6% a year from 2003-10, compared
with 2.7% from 2010-16. Second, the
population is growing less rapidly
than in the past. A fair comparison
would use per capita figures. Real
national health spending per person
rose on average 1.7% a year from
2003-10, compared with 1.9% from
2010-16.
What explains the law’s poor performance? To start, its signature
cost-control provisions simply have
not panned out. Accountable Care Organizations were supposed to give
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Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
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Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
The result of all this is the opposite of what Mr. Obama promised.
He sold the health-care bill by saying it would expand insurance enrollment and bring relief from rising
costs. But as the official data show,
national spending per capita on
health care not only hasn’t slowed, it
has grown somewhat faster during
the past six years than before
ObamaCare was passed. The cost
curve has been bent a bit, but in the
wrong direction.
Ms. Shelton is chairman of the
National Endowment for Democracy.
She served on the Trump transition
team.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
W
hen the authors of the Affordable Care Act promised
to “bend the cost curve” in
health care, it was typical Washington doublespeak. Voters likely heard
those words as a promise that costs
would go down, but the intended
meaning was merely that they would
rise more slowly than before.
Yet even by that meager standard,
ObamaCare is a failure. Costs are rising faster than before, and there’s no
real prospect of a reversal. The key
provisions of the law that were supposed to produce savings and efficiencies either haven’t worked or
will never be implemented.
hospitals and doctors incentives to
become more efficient and cut Medicare costs, but they have yet to produce any overall savings. In 2016 only
56% of the 432 ACOs hit their benchmarks for reducing costs. Even worse,
after taking into account their bonus
payments, ACOs actually increased
Medicare spending, by $216 million in
2015 and $39 million in 2016.
ObamaCare also included a provision to penalize hospitals that have
high rates of readmission within 30
days. This was supposed to cut costs,
and hospitals have reduced readmissions. But new data shows that mortality rates have also increased, suggesting the policy may contribute
each year to 5,400 premature deaths
of Medicare patients with serious
heart conditions. This is another instance of the unintended consequences when government meddles
in the practice of medicine. Moreover, there is no evidence that the
policy has reduced overall costs, because hospitals can provide other
services to make up for lower readmissions.
Medicare spending per capita, adjusted for inflation, has slowed
slightly, falling an average of 0.3% a
year from 2010-16. One factor here is
ObamaCare’s cuts in payment rates
to health-care providers. Medicare
now pays hospitals about 60% of
what private insurers pay. But this
hasn’t produced an overall slowdown
in health costs, because payment
cuts do not automatically translate
into a more efficient system or
higher-quality care. Some cuts
merely shift the burden of who is
paying the bill.
ObamaCare’s most promising costcontrol provision is the one that both
Republicans and Democrats are determined to jettison. To help pay for
the cost of the law’s expensive subsidies, the Democrats writing the bill
reluctantly agreed to impose a 40%
excise tax on “Cadillac” insurance
plans offered by employers—specifically, on any premiums that exceed
$27,500 a year for family coverage.
The idea was to give employers an
incentive to cut costs.
But the Cadillac tax is poorly designed, because it would hit low-salaried workers as hard as CEOs. It
wasn’t scheduled to kick in until
2018—four years after the rest of
ObamaCare—because of union opposition and Democratic ambivalence.
Then a 2015 law delayed it until
2020. Both parties would like to kill
the tax before it goes into effect.
n-
By Joseph R. Antos
And James C. Capretta
arena—and how it redounds to the
nation’s benefit by enhancing the
prospects for peace and prosperity
in the long run.
“The extraordinary trajectory of
the United States from a group of
colonies to a thriving, industrialized,
sovereign republic—the world’s lone
superpower—is a testimony to the
strength of the idea on which our
nation is founded, namely that each
of our citizens is born free and equal
under the law,” the document states.
“America’s core principles, enshrined
in the Declaration of Independence,
are secured by the Bill of Rights. . . .
Liberty, free enterprise, equal justice
under the law, and the dignity of every human life are central to who we
are as a people.”
Reagan’s speech 35 years ago
called on democratic nations to
join in reaffirming the power of
ideas to change the world for the
better, reminding their citizens to
think of themselves as “free people,
worthy of freedom and determined
not only to remain so but to help
others gain their freedom as well.”
Wars initiated by tyrants had devastated whole continents; the best
way to fight totalitarianism and its
terrible inhumanity was by actively
promoting freedom and democratic
ideals.
Two years later, on the 40th anniversary of D-Day, Reagan noted at
Normandy that the men who fought
there had faith that what they were
doing was right, faith that they
fought for all humanity: “You all
knew that some things are worth dying for. One’s country is worth dying
for, and democracy is worth dying
for, because it’s the most deeply
honorable form of government ever
devised by man.”
Mr. Trump’s National Security
Strategy aims to rebuild U.S. economic and military strength. The
goal is to keep the peace, so that soldiers will not have to make the ultimate sacrifice to defend America’s
vital national interests, its principles
and its way of life. But as the world
has learned, to great sorrow and loss
of life, there are no guarantees. “We
know that American success is not a
foregone conclusion,” Mr. Trump
said Monday. “It must be earned and
it must be won.”
Or as Reagan put it in 1982: “No,
democracy is not a fragile flower.
Still it needs cultivating.”
ly
.
By Judy Shelton
MANDEL NGAN/AFP/GETTY IMAGES
A New Trumpet for Democracy
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer;
Katie Vanneck-Smith, President
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Christina Van Tassell, Chief Financial Officer;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
Mr. Antos is a scholar in retirement and health policy at the American Enterprise Institute. Mr. Capretta
is a resident fellow at AEI.
Notable & Quotable: Pink Bike
The abstract of “The Pink-wheeled
Bike—Takes Two, Three, and Four,”
a paper by Pamela Zapata-Sepúlveda, Anne Beate Reinertsen,
Montserrat Martin and Aitor Gómez,
published in the Winter 2014 issue of
the International Review of Qualitative Research:
This is a collaborative postdoctoral story. We were visiting
scholars at the International Institute
of Qualitative Inquiry at the University of Illinois at Urbana-Champaign.
Our stories are about the bike with
the pink tires that we shared to
ride around campus. We thought
while we rode and reflected upon
our different realities in our countries, our research work, and our
dreams. We constituted a safe and
inspiratory network, and this has
had a positive impact on our lives.
The bike with the pink tires leans
calmly against the wall of the Armory building, guarding the gate,
always welcoming us as we return
from abroad.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A18 | Thursday, December 21, 2017
* *****
THE WALL STREET JOURNAL.
WORLD NEWS
North Korea Suspected in Bitcoin Theft
SEOUL—Investigators
in
South Korea are looking into
North Korea’s possible involvement in a heist from a bitcoin
Others
Euro
U.S. dollar
The hack that bankrupted
the operator of South Korean
bitcoin exchange Youbit is suspected to have been perpetrated
by actors connected to North Korea. But Pyongyang would likely
need to trade that bitcoin for a
usable good or commodity, or
perhaps a fiat currency. Here is
how they might try to pull it off.
75
50
By Timothy W. Martin,
Eun-Young Jeong
and Steven Russolillo
High-Tech Tools
Fuel Old-Fashioned
Money Laundering
Asia*
25
WHY WOULD HACKERS TAKE
BITCOIN IN THE FIRST PLACE?
Bitcoin offers users, thieves
included, a fast, cheap and rela-
HOW DO THEY DO THAT?
The stolen bitcoins started off
at Youbit in what is known as a
“hot wallet,” or an online account
used to maintain liquidity for
able,” Mr. Kalember said.
The bitcoin itself is supposed to be secure and safeguarded by a unique encryption code. But cyberthieves
have breached cryptocurrency
exchanges, stealing encrypted
passwords as well as bitcoins.
For North Korea, stealing
bitcoin could be an attractive
endeavor because of the cryptocurrency’s ability to rise sharply
in value over a relatively short
period. The price of one bitcoin
started this year at just under
$1,000 and has experienced a
frenetic rally, with choppy price
swings, to as high as nearly
$20,000 this past weekend.
For average consumers, online marketplaces can convert
bitcoin into regular cash that
can be sent to bank accounts.
But North Korea is allegedly
swiping vast sums of bitcoin
and must also cover its tracks.
To do that, North Korea, in
theory, could divvy up the bitcoin bounty into different accounts, then move the smaller
sums in and out of different
cryptocurrency
exchanges.
Each transfer would further
erode the links to the original
owners. Eventually, North Korea could create enough anonymity to cash out the bitcoin.
Exchanges are aware that security breaches present serious
risks. One of South Korea’s top
exchanges by trading volume,
Coinone, is headed by a former
hacker. Since 2017, the company
has worked with hackers who
conduct mock attacks to try to
breach its system.
North Korea was blamed for
last year’s cybertheft of $81
0
J
J
A
S
O
N
D
*Includes Japanese yen, South Korean won and Vietnamese dong
Source: CryptoCompare
THE WALL STREET JOURNAL.
House said North Korea directed this year’s WannaCry
ransomware attack, which
locked digital files and demanded bitcoin payment for
their release.
South Korean police and
the Korea Internet & Security
Agency said they had begun an
investigation into the Youbit
hack but were still determining the scope of the situation.
A North Korean cyber army
of 7,000 hackers around the
world has shifted tactics over
the past two years to become
more motivated by financial
gain, pilfering from banks and,
more recently, focusing on
cryptocurrencies, according to
cybersecurity
researchers.
North Korea has denied involvement in the hacking incidents.
North Korean leader Kim
Jong Un has a critical need for
funds as his regime advances
its nuclear-weapons program
in the face of tightened economic sanctions.
“North Korea is an ideal
country to use hacking and financial tools like bitcoin,” said
Troy Stangarone, a senior director at the Korea Economic
Institute in Washington.
“They’re experimenting with
ways to earn back lost money
from sanctions.”
The bitcoin craze has created a unique opportunity, as
a rush of new investors bet on
a market they had barely
heard of until recently, said
Ryan Kalember, a senior vice
president at Proofpoint Inc., a
cybersecurity firm.
“Much of the cryptocurrency system is highly vulner-
co Fo
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exchange that collapsed here on
Tuesday, according to people familiar with the situation, as the
sanctions-choked regime develops new ways to raise money.
The investigation into the
hack of Seoul-based exchange
Youbit, led by South Korean
law enforcement and a state
cybersecurity agency, is still in
its infancy and a review of the
malware code could take
weeks, the people said.
But the people said there
were telltale signs and historical
evidence that North Korea was
behind the Youbit attack. North
Korean hackers in April targeted the same cryptocurrency
exchange, several of the people
said. Yapian, the company that
operates Youbit, suspended
trading and filed for bankruptcy
after Tuesday’s hack.
The bitcoin heist follows
similar suspected Pyongyangdirected offensives against
other South Korean cryptocurrency exchanges—and an increasing number of attempts to
steal from individual investors.
On Tuesday, the White
tively anonymous way to move
money. The very big catch,
though, is that every transaction is recorded publicly, meaning anybody can track the
movement of a specific bitcoin.
So thieves employ high-tech
tools to engage in old-fashioned money laundering.
Hackers could make a series
of track-covering moves, with
the goal of engaging in so many
transactions across so many
platforms that tracking them become practically impossible.
If China doesn’t
object, the
designations are
expected to be set.
The Trump administration
has been hoping that China
will actively cooperate in its
push to ratchet up the economic pressure on North Korea to persuade Pyongyang to
give up its nuclear weapons
and long-range-missile program. The American proposal
to blacklist the ships has
emerged as a fresh test of the
ability of Washington and Beijing to work together on the
North Korean issue.
One of the North Korean-
no
The U.S. intelligence was
provided in recent weeks to
try to persuade a sanctions
committee that reports to the
Security Council to formally
designate the ships as sanctions violators, the officials
said. That would require U.N.
members to ban the vessels
from entering their ports.
It might also provide a basis for seizing the assets of
the companies that own the
ships, and may help build a
more-rigorous system of sanctions enforcement, especially
at sea, the officials said.
The intelligence includes
photos that show how foreignflagged ships have evaded
sanctions by illicitly transferring refined petroleum products to North Korean vessels
at sea. Other photos show how
several ships breached sanctions by smuggling North Korean coal to a Russian port.
Much of the information
was gathered by U.S. naval intelligence, and some of the reports were reviewed by The
Wall Street Journal.
American officials had
hoped the designations would
be made earlier this month.
n-
By Michael R. Gordon
in Washington and
Farnaz Fassihi at the
United Nations
But China, a key trade partner
that has kept Pyongyang’s
economy afloat, has asked that
the deadline be extended until
Thursday to evaluate the request, diplomats said. If China
doesn’t object, the designations are expected to go forward.
“We have received the relevant proposal and are looking
into it,” said Hua Chunying,
the spokeswoman for the
China’s Foreign Ministry. Russia’s mission to the U.N. said
that as a permanent member
of the Security Council, Russia
strictly complies with the implementation of all resolutions, including those related
to North Korea. Pyongyang
considers U.N. sanctions to be
illegal and confrontational.
flagged ships that the U.S.
wants to blacklist is owned by
a Chinese company, though
American officials said there
was no proof that senior Chinese officials were aware of
the arrangement.
The sanctions the U.S. contends were breached were
spelled out in two Security
Council resolutions, each adopted by a unanimous vote.
One resolution, which was
adopted in September after
North Korea conducted a nuclear test, imposed strict limits on the amount of refined
petroleum that can be provided to North Korea, among
other measures.
At the time, American officials boasted that it would
sharply reduce the oil provided to North Korea by imposing a strict cap of two million barrels a year on all
refined petroleum products
sent to the country.
But U.S. intelligence shows
that North Korea has partially
evaded the sanctions by arranging for the ship-to-ship
transfers. Photographs show
an apparent ship-to-ship
transfer involving a Hong
Kong-flagged ship, the Lighthouse Winmore, and the Sam
Jong 2, which operates under
a North Korean flag.
The other resolution, which
was approved in August after
North Korea carried out two
intercontinental ballistic missile tests, sought to punish
Pyongyang by imposing a ban
on North Korea’s exports of
coal, which American officials
say have been the largest
source of its external revenue.
AGENCE FRANCE-PRESSE/GETTY IMAGES
U.S. Identifies Sanctions-Busting Ships
Presenting newly declassified intelligence reports, the
U.S. urged the United Nations
Security Council to blacklist 10
ships it says have violated international sanctions against
North Korea, American officials said.
The demilitarized zone separating the two Koreas
North Korean Soldier
Flees Across DMZ
SEOUL—A North Korean
soldier defected across the demilitarized zone into South Korea, the fourth such incident
this year, according to the Defense Ministry in Seoul.
The defector is “junior ranking,” a ministry spokesman said,
declining to reveal additional details about the soldier, including
his name and rank. He defected
across the border at about 8
a.m. Thursday, at an undisclosed point on the northwestern portion of the inter-Korean
border, the spokesman said.
South Korean authorities
are investigating the defector’s
motivation.
North Korean border
guards, who appeared to be
tracking the defector, were
spotted by South Korean surveillance equipment about an
hour after the incident. The
North Korean trackers briefly
crossed into South Korea, the
Defense Ministry in Seoul said.
South Korean guards fired 20
warning shots at the North Koreans, the ministry said. The
North Koreans then returned
to their side of the border.
Last month, a North Korean
soldier, identified only by his
surname, Oh, dramatically defected under heavy gunfire.
Two other North Korean
soldiers defected across the inter-Korean border this year.
—Andrew Jeong
Volcano Fears Hit Indonesian Island’s Tourism ‘Like After the 2002 Bali Bombing’
DONAL HUSNI/ZUMA PRESS
daily trading. Most of the exchange’s assets were held in a
“cold wallet” not connected to the
internet, which is why the hack
didn’t do even more damage.
The first move out of the
hot wallet is easily traceable,
but the stolen goods from
there could be transferred to
hundreds or thousands of wallets the hackers control.
WHAT’S THE SECOND MOVE?
It is possible to move the stolen money through an unregulated exchange. That would make
it easier for the thieves to maintain their anonymity and trade the
bitcoin for any of the more than
1,000 other cryptocurrencies.
—Paul Vigna
million from Bangladesh’s central bank, followed by a $60
million theft this year from a
Taiwanese bank.
Pyongyang’s bitcoin interest
has taken root more recently.
North Korea targeted three
cryptocurrency exchanges in
South Korea between April
and October, people familiar
with that investigation said.
On Dec. 1, Youbit purchased
a one-year cyberinsurance policy from DB Insurance Co., a
South Korean firm, with damage coverage up to about $2.8
billion.
A spokesman at DB Insurance said Youbit hasn’t filed a
claim. Youbit has up to three
years to do so.
ly
.
Pyongyang’s hackers
Global Reach
accused of turning to Share of bitcoin trading based on currency involved
cryptocurrency, banks 100%
as regime seeks funds
A smoldering volcano is giving
Indonesia’s resort island of Bali its
worst holiday season in years
amid eruption fears. Representatives from two five-star hotels in
Nusa Dua, a high-end coastal enclave, said occupancy rates are at
about 20% of capacity and bookings for Christmas and New Year’s
Eve are down by roughly half.
“It’s like after the 2002 Bali
bombing,” said Bulan Bharata,
public relations manager of the
Grand Hyatt Bali, referring to a
an attack by an al Qaeda-linked
group that killed 202 people,
many of them Australian tourists.
Bali takes in two of five tourists visiting Indonesia., where
tourism represents 11% of the
$932 billion economy. Hotel operators are waiving high-season
charges, minimum stays and cancellation fees.
Mount Agung, left, sprang to
life this year for the first time in
more than half a century. Last
month, it forced the closure of
Bali’s airport, though it has been
less active in the past few weeks.
—Ben Otto
and I Made Sentana
Hedge funds are joining the
bitcoin party................................ B1
Accused
Plotter
Kept Low
Profile
BY MIKE CHERNEY
SYDNEY—The man accused
of playing a central role in an
alleged
sanctions-violation
plot to sell missiles and coal
for North Korea aroused no
suspicion with his neighbors
in a Sydney suburb popular
with immigrants.
Chan Han Choi, 59 years
old, who appeared in court for
the first time via video link
Wednesday, lived in Australia
for some 30 years before his
arrest over the weekend.
One neighbor said Mr. Choi
went by the name Solomon
and lived alone in a redbrick
apartment with a bamboo
screen on the balcony in suburban Eastwood, which has a
large Korean and Chinese
community. He worked as a
cleaner, according to his lawyer.
“He seemed like quite a
nice guy,” said Geoff Cowdroy,
who lives in the same low-rise
building as Mr. Choi. “You
wouldn’t see him much. He’d
be in and out all the time.”
Mr. Choi is accused of brokering the sale of missiles and
related expertise for North Korea, and attempting to transfer coal from North Korea to
entities in Indonesia and Vietnam, in breach of international sanctions. He spoke little during Wednesday’s brief
court appearance, other than
to say via a Korean interpreter
that, at one point, he was having trouble hearing what was
being said. Among the charges
laid out in court documents,
Mr. Choi is alleged to have
brokered the sale of “tactical
inertial measurement units,”
which are used in aircraft navigation. He is being held in a
maximum-security
prison,
with another hearing scheduled for Feb. 28 next year.
Alex Radojev, a lawyer representing Mr. Choi, said he
had only received the paperwork detailing the case
Wednesday morning and had
yet to meet his client. There is
no indication as to how Mr.
Choi will plead.
Australian police previously
said they were speaking with
Mr. Choi’s relatives. On Tuesday, a man believed to be Mr.
Choi’s son declined to speak to
The Wall Street Journal.
The case, the first of its
kind in Australia, could shed
light on the global nature of
the financial networks North
Korea uses to get around sanctions and attract funding.
—Rob Taylor in Canberra
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.
TECHNOLOGY: APPLE SLOWS OLD IPHONES TO KEEP THEM RUNNING B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2679.25 g 0.08%
S&P FIN g 0.25%
* * * *
S&P IT g 0.09%
Thursday, December 21, 2017 | B1
THE WALL STREET JOURNAL.
DJ TRANS À 0.88%
WSJ $ IDX g 0.03%
LIBOR 3M 1.658
NIKKEI (Midday) 22806.28 g 0.37%
Hedge Funds Join Bitcoin Party
Futures, high prices
persuade firms to
weigh bets for, against
digital currency
BY GREGORY ZUCKERMAN
Some of Wall Street’s largest players are gearing up for
bitcoin.
Until recently, big-name
hedge funds paid little attention to the digital currency.
But the rollout of futures trading and soaring prices have
some large firms considering
whether it is time to wade into
the market.
The funds are looking to
profit either by buying bitcoin
and other cryptocurrencies or
by betting against them. Their
entry could provide a new jolt
to bitcoin’s already volatile
trading.
Just over a month ago, executives of firms including
Quantbot
Technologies,
which trades over $3 billion
for Steven Schonfeld’s Schonfeld Strategic Advisors, and
Steven Cohen’s Cubist Sys-
tematic Strategies, met for
lunch to discuss ways to profit
from trading cryptocurrencies,
according to people close to
the matter.
Now, Quantbot and others
say they are working to understand how they might be able
to profit from bitcoin. “It’s
gotten more interesting and
the barrier to entry has fallen”
now that bitcoin futures are
available, said Michael Botlo,
Quantbot’s co-founder. “We’re
not planning anything near
term but once we get in, it will
probably be quick.”
Some sizable firms and bigname investors already are involved in bitcoin. Fortress Investment Group owns over
$100 million of bitcoin. Horizon Kinetics LLC, a firm that
manages more than $6 billion
in hedge funds, mutual funds
and other products and calls itself “value-oriented and “riskaverse,” has been vocal about
its recent purchases of bitcoin
and other cryptocurrencies.
Part of the reason the firm is
buying: It sees stocks and bonds
as expensive and the possible
upside for bitcoin as huge.
Trust Issues
Subaru’s daily share price
¥4,200
“I call it an emerging, historically and sociologically
unique asset class that, if accepted, will change society,
and before it does that will be
enormously valuable,” Murray
Stahl, Horizon’s chairman and
chief executive, recently wrote
to clients. “Cryptocurrency is
merely a reaction to global
market policy” that has sent
all asset prices climbing.
Other big-name funds, such
Please see BITCOIN page B4
Cryptocurrency surge spurs
insider-trading inquiry........... B4
Ruling Puts Uber on Tougher Road in Europe
BY NATALIA DROZDIAK
no
n-
top court established in 2014.
That decision empowered EU
citizens to direct Alphabet
Inc.’s Google and other search
engines to remove results
deemed to infringe on personal
privacy.
How Wednesday’s ruling
might affect Uber beyond Europe would depend on a jurisdiction’s approach to transportation rules, and regulatory
regimes vary widely around
the world. Indeed, Uber used
Europe’s unique rules establishing lighter regulations for
information-services firms to
argue it shouldn’t be subject to
the more burdensome standards EU countries can apply
to transportation.
Under EU law, national gov- Roadblocks
ernments have more regula- Uber has faced legal obstacles in several European Union countries
tory control over transport —particularly bans on UberPop, which connects passengers to drivers
companies than they do online without professional licenses. Some examples:
services, with the latter free
Other Uber
from such burdens as strict liStatus of UberPop
Country
services permitted*
censing requirements.
Yes
Banned in December 2014
Europe’s top court ruled Spain
against Uber’s argument that it France
Yes
Suspended in July 2015
was simply a marketplace to
Yes
Banned in March 2015
Germany
connect people who want serYes
Banned in Brussels in September 2015
vices, and that decision could Belgium
undermine the efforts of many Netherlands Closed in November 2015
Yes
Silicon Valley firms to keep Hungary
No
Suspended in July 2016
regulators at arm’s length
Yes
Closed
in
May
2016
Sweden
around the world. Airbnb Inc.,
for instance, has declined to U.K.
Yes†
Never rolled out
proactively filter some types of *Services available in at least one market, as of Tuesday. †Uber faces license review in London
Please see UBER page B2 Sources: staff reports; the company
THE WALL STREET JOURNAL.
Gifts for the Family? Tech Tips
Is Alexa recording me?
A few practice runs—“Alexa, what’s the weather?” “OK
3,800
3,600
3,400
3,200
Sept. Oct.
Nov.
Dec.
Source: FactSet
THE WALL STREET JOURNAL.
Subaru
Probes if
Fuel Data
Was Fake
TOKYO—Subaru Corp. said
Wednesday it was investigating whether workers at Japanese factories improperly altered some fuel-economy data,
adding to a scandal that has
damaged its Japanese business
but not its core U.S. market.
The company’s statement
came a day after it released a
53-page report about inspection
problems at its factories—a report that didn’t mention fueleconomy data issues. Subaru
said it held off because it hadn’t
confirmed whether any data was
faked, but its hand was forced
after Japanese public broadcaster NHK raised the issue.
Subaru shares fell more than
7% in Tokyo trading Wednesday after the NHK report.
A spokesman said the company didn’t yet know what
fuel-economy data had been
affected, how many cars were
involved and whether any cars
with problematic data were
exported from Japan. Some of
Japan’s top manufacturers
have been hit by scandals in
recent months, including Nissan Motor Co. and Kobe Steel
Ltd., casting a cloud over the
nation’s reputation for quality.
In October, Subaru said
some unauthorized employees
were conducting final vehicle
inspections—an issue similar
to the one Nissan disclosed
weeks earlier. Subaru recalled
395,000 vehicles in Japan but
said it didn’t find cases where
safety was compromised.
At a news conference Tuesday, Subaru President Yasuyuki
Yoshinaga said orders for Subaru vehicles were down 30% in
December in Japan. He said the
company hadn’t seen any effect
in North America, which accounts for nearly 70% of its vehicle sales, and Subaru’s sales in
the U.S. were “extremely good.”
ly
.
co Fo
m rp
m e
er rs
ci on
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on
Europe’s top court ruled Uber is subject to traditional transport law. Madrid taxi drivers protested against the company last month.
PERSONAL TECHNOLOGY | Joanna Stern
INSIDE
Rolling Stone’s Owner
Sells Control to Penske
BY JEFFREY A. TRACHTENBERG
PHOTO ILLUSTRATION BY KURT WILBERDING
There you
are, standing
between
Gram’s holiday
ham and the
green-bean
casserole and—Bam!—Uncle
George makes his move: “Can
you have a look at my phone?
This iCloud keeps asking for
money.”
Then the floodgates open.
“Oh yeah, the Wi-Fi is on the
fritz again,” Dad yells from
the kitchen. Mom’s turn: “Did
you know your cousin Jill’s
daughter’s husband’s mom
owns a bitcoin? Do you have a
bitcoin?” As you reach for the
egg nog, you hear Aunt Bertha ask, “Can this Alexa lady
really be trusted?”
Of course, this is your fault.
You’re pretty good at technology so your family thinks
you’re the next Steve Jobs.
We love our families. They
deserve the best advice on
complicated tech topics, so
I’ve prepared a guide. You can
even print it out for the family to read—if you can fix
Pops’s stupid inkjet, that is.
4,000
Wednesday
¥3,478 ($30.81)
▼7%
BY PETER LANDERS
JUAN MEDINA/REUTERS
BRUSSELS—Uber Technologies Inc. suffered a major defeat in its effort to overturn
strict rules and licensing requirements in Europe, after
the bloc’s highest court
Wednesday ruled the ride-hailing company should be regulated as a transportation service, rather than a digital
service.
The judgment by the European Court of Justice won’t
force Uber to curtail most of
its services in Europe, but the
decision is a blow to the company’s bid to use courts to
lighten its regulatory load and
means it must deal more directly with national and local
governments that set rules
governing car and transport
services in Europe. Those authorities have sought to hold
Uber to the often-strict standards that apply to taxi and
traditional car-hire services.
“This ruling will not change
things in most EU countries
where we already operate under transportation law,” an
Uber spokeswoman said. “As
our new CEO has said, it is appropriate to regulate services
such as Uber and so we will
continue the dialogue with cities across Europe.”
Still, the decision could have
ramifications for Uber and
other so-called sharing-economy businesses in markets beyond Europe. Officials here in
recent years have taken a more
aggressive stance than other
jurisdictions on a wide array of
regulatory and enforcement issues affecting Silicon Valley
firms—including taxes, privacy
and alleged anticompetitive
behavior. While the legal reach
of such rulings is confined to
Europe, regulators in other regions have started looking to
the continent as an example.
Last year, for instance, Indonesia passed a law creating a
“right to be forgotten,” similar
to one the European Union’s
See more at WSJMarkets.com
AMAZON TRIES
TO PERFECT
THE BOX
E-COMMERCE, B3
Fear not, Big Brother didn’t make your face-scanning iPhone X.
Google, how old is Fred
Astaire?”—and even your
crotchetiest uncle is in on the
smart-speaker fun.
But don’t finish the setup
without having “the talk”—
where virtual assistants come
from. Microphones are always
listening for the wake word.
Once the speaker hears it, it
records and uploads the command to the company’s servers for an answer. Both Amazon and Google save every
request and voice recording
(encrypted), though you can
delete them in their respective apps. While you’re at it,
point out the microphone
mute buttons.
Why are printers terrible?
Short answer: To give all
humans something they can
hate equally. If wireless printing is sluggish or just not
working, restart the printer.
Still having trouble? Reconnect to the wireless network
Please see STERN page B4
STOCKS PAUSE
TO DIGEST
TAX BILL
MARKETS, B10
Penske Media Corp., which
owns the trade publications
Variety, Deadline and Women’s
Wear Daily, has acquired a
controlling stake in Wenner
Media, whose prime asset is
Rolling Stone magazine.
A person familiar with the
situation said Wenner Media
was valued at roughly $100
million, which means that Penske Media paid north of $50
million for its majority stake.
The investment gives Penske Media control of the magazine that for decades covered
the biggest rock stars of the
baby boomer generation and
featured the work of writers
such as Hunter S. Thompson
and Tom Wolfe. In the process,
it became a leading political
and cultural force.
Mr. Penske is betting he
can find value in a wellknown brand, even though
Rolling Stone’s business has
weakened over the past several years, amid industrywide
pressures on the print publishing business.
“This is the greatest publishing brand covering music
politics and culture,” said Penske Media Chief Executive Jay
Penske. “It’s an incredible opportunity.”
Jann Wenner, who cofounded the magazine in 1967,
will stay on as editorial director of Wenner Media.
“I am so proud of our accomplishments over the past
50 years and know Penske Media is the ideal match for us to
thrive in today’s media landscape,” said Mr. Wenner in a
statement.
Gus Wenner will continue
to serve as president and chief
operating officer of Wenner
Media and will lead the Rolling Stone business.
Jann Wenner put the magazine up for sale this September, about a year after selling
a 49% stake in Rolling Stone to
BandLab Technologies Ltd., a
closely held Singapore-based
collective of global music
brands. BandLab will continue
to be the minority partner in
Rolling Stone.
Penske Media was founded
in 2004 as a software and media business. Five years later,
Mr. Penske bought Deadline.com, which covers entertainment news. He bought Variety in 2012, and two years
later bought Women’s Wear
Please see PENSKE 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 | Thursday, December 21, 2017
THE WALL STREET JOURNAL.
* ***
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
B
BandLab Technologies B1
Blue Apron Holdings B11
BP..............................B10
Brevan Howard Asset
Management...........B10
C
Campbell Soup............B2
Cantab Capital............B4
Cboe Global Markets..B4
Chenavari .................. B10
Cheniere Energy ......... A7
Chevron ..................... B10
CME Group..................B4
Coinbase......................B4
Convercent..................B6
Costco Wholesale.......B3
Crédit Agricole............A2
Cubist Systematic
Strategies.................B1
E
Ellington Management
Group.........................B4
ENI...............................B3
Ewan Kirk....................B4
Facebook....................B11
FedEx.........................B10
Fortress Investment
Group...................B1,B4
G
General Mills...............B2
Google ......................... B1
H
Hellenic
Telecommunications
Organization...........B10
Hershey.......................B2
Horizon Kinetics.........B1
K
Kobe Steel...................B1
Kroger..........................B3
L
LedgerX.......................B4
M
Micron Technology....B10
Microsoft...................B11
N
Nissan Motor..............B1
Nova Lifestyle...........B11
NXP SemiconductorsB11
O
Oi.................................B3
Oracle ........................ B11
Point72 Asset
Management.............B4
Q-R
Qualcomm.................B11
Quantbot Technologies
.....................................B1
Royal Dutch ShellB3,B10
S
Sealed Air ................... B3
Sodexo.........................B6
SoftBank Group..........B2
Standard Chartered
Bank..........................A2
Stitch Fix...................B11
Subaru.........................B1
T
Tellurian......................A1
Total .......................... B10
U
Uber Technologies.B1,B2
United Parcel Service.B3
V
VR Capital Group......B10
W
Wal-Mart Stores.........B3
Wenner Media ............ B1
WeWork ...................... B2
X
XPO Logistics..............B3
Y
P
Yapian........................A18
Passport Capital......... B4
Penske Media ............. B1
Zeta Global ................. B6
Z
INDEX TO PEOPLE
K
Kaabi, Musabbeh Al...A7
Kalanick, Travis...........B2
Khosrowshahi, Dara ... B2
King, Doug.................B10
Koliopoulos, Marios..B10
C
L
Chou, Paul...................B4
Cohen, Steven.............B1
Larsen, Debra..............B2
Fery, Loic...................B10
Fuller, Bonnie..............B2
G
Gofshteyn, Ilya...........A2
H-J
Harford, Barney..........B2
Harmening, Jeff..........B2
Heinz, Kenneth...........B4
Houchens, Kim............B3
Johnson, Abigail.........B6
Jones, Kathy.............B11
M
Marcegaglia, Emma....B3
Mills, Ed......................A4
Munoz, Oscar..............B6
N
Natsis, Trifon............B10
Nelson, Brent..............B3
Novogratz, Michael.....B4
O
Oughourlian, Joseph.B10
R
Roth, Thomas ........... B11
Rusnak, George.........B11
S
Sabar, Rasheed...........B4
Schonfeld, Steven.......B1
Scott, Kim...................B6
Souki, Charif...............A7
Stahl, Murray..............B1
Steinberg, David.........B6
Stiglitz, Joseph...........B4
T
Teles, Eurico................B3
W
Wenner, Gus ............... B1
Wenner, Jann..............B1
Y
P-Q
Penske, Jay.................B1
PENSKE
ADVERTISEMENT
The Mart
Weekly and Men’s Journal to
American Media Inc., owner
of such brands as the National
Enquirer and Radar Online.
Rolling Stone’s reputation
was tarnished after it published an article in November
2014 about an alleged gang
rape at a University of Virginia
fraternity that turned out to
have factual errors. A subsequent investigation by Columbia University’s Graduate
School of Journalism described the story as a “journalistic failure that was avoidable,” and the piece was
retracted.
A federal jury later found
that Rolling Stone had defamed a university administrator identified in the story and
awarded her $3 million in
damages. The two parties
eventually reached a private
financial settlement. Rolling
Stone also settled a separate defamation suit brought
by the fraternity identified in
its story. A third lawsuit
brought by three fraternity
members is pending.
no
Continued from the prior page
Daily and other fashion publications from Condé Nast, a
unit of closely held Advance
Publications Inc. In late October, Penske Media bought an
apparel and textile trade publication called Sourcing Journal.
Although the company is
best known for its trade publications, it is the majority
owner in the consumer publication Robb Report, a luxury
brand. Penske Media also operates such consumer-facing
online digital brands as BGR,
which focuses on mobile gadgets; TVLine, which is aimed
at television enthusiasts; and
Hollywood Life, which focuses
on a mix of fashion, celebrity,
beauty and entertainment
news. That site is edited by
Bonnie Fuller.
The deal with Penske Media
appears to cap Jann Wenner’s
long career as a media owner
and tastemaker. Earlier this
year, Mr. Wenner sold Us
Yoshinaga, Yasuyuki...B1
n-
F
Quarles, Christa..........B6
Quinlan, Patrick..........B6
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BUSINESS OPPORTUNITIES
The company estimates 30% of cereal in the U.S. is eaten as a snack rather than a meal. Sales of Chocolate Peanut Butter Cheerios are strong.
Snacks Give Cereal Maker a Lift
BY ANNIE GASPARRO
General Mills Inc. said its
snack and cereal sales are improving in the U.S. as more
people nibble throughout the
day in place of larger meals.
Stronger sales in the second
quarter marked important
progress for a company that
has struggled in recent years
as older brands like Betty
Crocker and Hamburger Helper
fell out of favor and newer
products like Yoplait yogurt
lost market share to rivals.
Chief Executive Jeff Harmening said new products and
better marketing helped General Mills in the quarter, as did
the consumer shift toward
snacking. In the U.S., the company’s sales of cereals like
Chocolate Peanut Butter Cheerios rose 7%, and sales of
snacks like Nature Valley granola bars rose 5%.
“People are snacking more,”
Mr. Harmening said in an interview, adding that General Mills
believes 30% of cereal in the U.S.
is eaten as a snack rather than a
meal, up from 10% a decade ago.
“It’s probably one of the
reasons our cereals that taste
really good are the ones that
are growing,” he said. Sweeter,
classic cereals like Lucky
Charms and Cinnamon Toast
Crunch are driving sales for
General Mills, while its Fiber
One brand struggles.
Campbell Soup Co. and Hershey Co. also moved deeper
into snacks this week. Campbell said it plans to buy Snyder’s-Lance and Hershey said
it would buy Amplify Snack
Brands, the biggest acquisitions in the centurylong history of both companies.
General Mills could make
more acquisitions, Mr. Harmening said. It has bought Annie’s
Homegrown and Epic meat
bars in recent years. He said,
though, that such deals aren’t
the only way to generate sales.
“We don’t feel pressure to do
M&A just because all the other
Slow Sales
General Mills retail sales have
been behind the overall industry.
U.S. retail sales
General Mills
Overall industry
2%
0
–2
–4
–6
–8
4Q
FY 2017
1Q
FY ’18
2Q
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
B
Bellon, Sophie.............B6
Bevans, Keith..............B6
Botlo, Michael.............B1
Brodsky, Andrew ........ B6
Burbank, John.............B4
ROBERT NICKELSBERG/GETTY IMAGES
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All Rights Reserved.
revive the company’s cereal
and yogurt businesses. General
Mills has reworked recipes
and introduced products like a
French-style yogurt, Oui by
Yoplait, which is sold in glass
jars with no artificial ingredients. The company’s yogurt
sales were still down 11% in
North America in the latest
quarter, but that was a big improvement from the summer.
General Mills now projects
comparable sales for the year
ending in May to be flat to
down 1%, from an earlier estimate of down 1% to 2%. The
company’s stock closed up 2%
at $58.76 on Wednesday.
Overall, revenue rose 2.1%
in the second quarter to $4.2
billion. Profit for the quarter
ended Nov. 26 fell to $430.5
million from $481.8 million
the prior year. Excluding onetime items, adjusted earnings
of 82 cents a share matched
analysts’ expectations according to FactSet, while revenue
topped their projection.
ly
.
Exxon Mobil..............B10
Note: Fiscal year ends in May; overall Industry
includes General Mills' food categories
Source: Nielsen XAOC
kids are doing it,” he said.
Mr. Harmening, who was
chief operating officer and
head of the North America
business before becoming CEO
in June, has said he wants to
WeWork Is Now Less Collegial With Rivals
BY ELIOT BROWN
Executives at WeWork Cos.
have long played down competitive threats to the sharedoffice-space giant, saying that
similar companies help the
fledgling sector grow.
But in recent months the
seven-year-old company has
changed its tune.
Armed with a $3.1 billion
commitment of new cash from
SoftBank Group Corp.’s investment fund this summer,
WeWork has ratcheted up
pressure on an array of competitors, offering their tenants
lucrative deals—and sometimes even free food—to convince them to defect.
Co-working
companies
around the globe say that this
fall WeWork launched a marketing blitz to lure their tenants with a year of free rent
with a two-year contract. The
offer was so generous that
these smaller companies say
they would lose money if they
matched it.
UBER
Continued from the prior page
listings in Paris in part because
it says it is a technology platform, not a housing provider.
“Regulators abroad that
have social systems similar to
the EU may find inspiration in
this decision with respect to
how to craft their freelance
economy rules,” said Dave Anderson, an EU law partner in
the Brussels office of Berwin
Leighton Paisner LLP.
The EU court case originates from legal action filed by
Elite Taxi, a Barcelona-based
association of independent taxi
drivers, which is seeking penalties against Uber for operating its UberPop service without the necessary taxi licenses
and authorization from the
city.
The judgment dashes Uber’s
hopes for a regulatory rollback
in Europe and could even embolden regulators of the company. It also effectively dooms
any prospects for UberPop, a
lower-cost service that uses
drivers without professional licenses. Uber only offers the
service in Poland, the Czech
Republic, Slovakia and Romania after a retreat from most
other EU countries. Uber says
it doesn’t intend to revive
UberPop where it had sus-
employees toured their spaces
just before the marketing push
began.
WeWork says it has since
ended the free-rent promotion. Meanwhile, the company
over the past year has sought
to block at least three coworking companies from using
the words “we” or “work” in
their names through lawsuits
and legal letters, according to
court records.
The moves raise questions
about whether demand for
WeWork spaces is growing as
fast as supply.
Valued by SoftBank at $20
billion, the company continues
to grow rapidly and has
roughly doubled its space every year. Since it opened its
first location in 2010, WeWork
has amassed more than
175,000 “members,” its name
for individual renters.
Average occupancy for locations open at least 12 months
was at 90% in June, down
from 97% a year earlier, according to the company. During that time WeWork increased other incentives like
fees to brokers.
A WeWork spokesman said
the company’s sales to both
large corporations and small
businesses were strong and
membership is at a high. “Our
aim is to make it as easy and
enticing as possible to join our
growing global community,”
he said in an email.
food-delivery and customer-support operations, Uber said.
Mr. Harford has nearly twodecades experience in the online
travel industry.
The move is Mr. Khosrowshahi’s second major hire since
taking over in September and
takes care of a role the company had been seeking to fill
since before his predecessor,
Uber co-founder Travis Kalanick,
was ousted as chief executive in
June.
In a blog post Wednesday,
Mr. Khosrowshahi said Mr. Harford had served as an adviser to
him since October. “I have never
met a stronger operator or a
more thoughtful strategist,” Mr.
Khosrowshahi wrote.
Mr. Harford worked under
Mr. Khosrowshahi for a short
time at Expedia Inc. more than a
decade ago when the former
was president of Asia Pacific for
the travel site and the latter its
new CEO. Mr. Harford later became CEO of competitor Orbitz
Worldwide Inc. in 2009 and then
sold the company to Expedia in
2015 for $1.6 billion.
Mr. Khosrowshahi last
month added former PepsiCo
Inc. general counsel Tony West
as chief legal officer. Uber still is
seeking an independent chairman and a chief financial officer,
a role it hasn’t filled since 2015.
—Greg Bensinger
off strict regulation by arguing
it isn’t a transportation company but rather an online platform, which under EU law is
given more regulatory leeway.
In its judgment, the European court said Uber’s service
“must be regarded as forming
an integral part of an overall
service whose main component
is a transport service and, accordingly must be classified
not as ‘an information society
service,’” referring to the legal
term for an online platform.
The court argued Uber’s app
is indispensable to the drivers,
as well as their passengers,
and that the company “exer-
cises decisive influence over
the conditions under which the
drivers provide their service.”
While this particular court
case cannot be appealed, Uber
can pursue other legal challenges to defend its business.
The ruling is the latest setback for Uber’s new chief executive, Dara Khosrowshahi, who
took the role in September after Travis Kalanick stepped
down in June under investor
pressure after months of scandal and legal defeats
—Greg Bensinger
in San Francisco and
Sam Schechner in Paris
contributed to this article.
MIKE SHORT/BLOOMBERG NEWS
A
Advance Publications.B2
Airbnb..........................B1
Airbus..........................B3
Alphabet .............. B1,B11
Alvarez & Marsal......B10
Amazon.com........B3,B11
Amber Capital...........B10
American Media..........B2
Apple....................B4,B11
Autonomy Capital.....B10
Renters using WeWork space in San Francisco.
Debra Larsen, founder of
the 70,000-square-foot coworking space WorkHouse
NYC, said she lost three of her
more than 60 total tenants,
and had to waive some fees to
keep a fourth. Her staff chased
away a WeWork employee who
was handing out fliers pushing
the free year of rent outside
her building, Ms. Larsen said.
Other operators said WeWork
Ride-Hailing Firm
Finally Has a No. 2
Uber Technologies Inc. chief
Dara Khosrowshahi has made
former colleague and competitor
Barney Harford his top lieutenant, naming the former CEO of
travel-booking site Orbitz as
chief operating officer.
Mr. Harford, 45 years old, becomes Uber’s second-highestranking executive as the ridehailing company tries to rebound
from a year plagued with scandals and legal issues. He will
oversee the core ride-hailing
business world-wide, as well as
pended the service, adding the
company now operates in
those markets with services
that comply with local transport rules.
Uber has tussled with taxi
companies and regulators
around the world for much of
its eight-year history, but the
scrutiny has been especially intense in Europe. There have
been sometimes violent protests from entrenched taxi services, and UberPop has succumbed to local or national
bans in Italy, Germany, Belgium, the Netherlands, Spain
and Hungary.
Uber has long tried to ward
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.
Thursday, December 21, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
Creditors
Agree to
Rescue of
Brazil’s Oi
More Amazon Orders, Fewer Boxes
Retailer tries new ways
to send more items
with less cardboard
as its shipments surge
Amazon's overall shipments
continue to rise even as it tries
to minimize the number of
boxes it uses.
BY LUCIANA MAGALHAES
BY LAURA STEVENS
AND ERICA E. PHILLIPS
Estimated Amazon U.S.
packages delivered
1.00
0.75
0.50
0.25
0
2007 ’09
’11
’13
’15
’17
Deliveries from all sources
during the holiday season
2016
2017*
773† million
850
ANDREW HARRER/BLOOMBERG NEWS
USPS
714†
750
UPS
FedEx
358**
350-400
Note: Holiday-season definitions vary slightly;
UPS and FedEx numbers are global; USPS is
for the U.S.
*Forecasts †Calculated from 2017 forecast
**Calculated from 2015 number
Sources: MWPVL International Inc. (Amazon
shipments); the companies (deliveries)
Improved algorithms help decide which size box to use and how many items can be packed together.
THE WALL STREET JOURNAL.
box. Almost half of all of Amazon’s products fit into the new
mailers and poly bags, said
Kim Houchens, director of customer packaging experience.
Her team has been working
to improve algorithms that
help decide which size box to
use and how many items
should be packed together in
each shipment. The algorithms
use machine learning to test
out new combinations—for example, shipping a breakable
item in a smaller box with less
cushioning. The algorithm can
scan customer reviews and
other data to see if it worked
and adjust as needed.
The trick is “to make better
choices with each box size,”
Ms. Houchens said.
Online shoppers typically
place several items in the cart
for an order. Each item may
come from a different warehouse or store around the U.S.,
packaging, he said. “In general, I’m really torn because I
like to use as few resources as
possible, but I also like leaving
my house very little.”
Amazon’s number of U.S.
shipments could reach more
than 1.2 billion this year, about
double the number five years
ago, according to estimates by
supply chain consultancy
MWPVL International Inc. Amazon’s third-quarter worldwide shipping costs rose 39%
over last year to $5.4 billion.
One motivation for retailers
to offer better boxing is a
change in how UPS and FedEx
Corp. charge for deliveries.
This holiday season, UPS
added an extra charge per
package for certain dates. Both
UPS and FedEx in 2015 started
charging by size instead of by
weight alone, to discourage retailers from sending small
items in big boxes.
and all need to make it to the
shopper within the promised
delivery window.
Amazon says it is making
progress in persuading product manufacturers to rethink
packages for online sales.
Most are conceived to help
products “stand out among a
sea of choices” on a store
shelf, said Brent Nelson, senior
manager of customer-packaging experience at Amazon. “Almost universally, packaging
designed for brick and mortar
is oversized with expensive
and redundant shipping features.”
Take Philips’s Norelco
OneBlade trimmer and shaver,
which is sold in stores with 13
packaging pieces. But Philips
created special packaging for
Amazon: A plain brown box,
which eliminates the need to
put the razor in a separate
Amazon box, cuts out four
pieces of packaging and is
about 80% smaller in volume
than the box needed to ship
the store version. Shoppers
can select between the two
types of packaging on the site,
“standard” and “frustrationfree.”
Consumers—especially
younger ones—have concerns
about the environmental impact of all their online ordering, Amazon’s Ms. Houchens
said. And the right packaging
material can win brand loyalty.
Brian Richards, a 31-yearold resident of Grandville,
Mich., recently ordered four
bulletin boards from Amazon.
Each came in a too-big box
that he said could have fit all
four. “It was outrageous,” said
the father of two and online
trainer. “It was a huge, huge
amount of packaging.”
Amazon has recently been
hit or miss when it comes to
Kuwait Sets Probe
Of Airbus Deal on
Military Helicopters
$20B
Oi’s debt, which would be
reduced with a restructuring.
Gas being flared at an Eni-operated facility in Nigeria in 2015. The firm and its CEO have been indicted.
Oil Executives Face Corruption
Charges Over a Nigerian Deal
Royal Dutch Shell PLC,
Italian energy company Eni
SpA and its chief executive, as
well as other industry execuBy Eric Sylvers in
Milan and Sarah Kent
in London
tives, must stand trial on corruption charges connected to a
2011 Nigerian oil deal, an Italian judge ruled Wednesday.
The prosecution marks a
rare case in which top oil executives could face jail time for
corruption allegations.
Prosecutors say in court
documents that Eni CEO Claudio Descalzi and the other executives at both Shell and
state-backed Eni knew that
most of the $1.3 billion the
companies paid to the Nigerian government to acquire the
drilling rights would be distributed as bribes. Prosecutors
say Goodluck Jonathan, the Nigerian president at the time of
the deal, received part of the
kickbacks.
Mr. Jonathan didn’t respond
to a request for comment. He
has previously denied being
involved in any corruption.
The trial is due to start
March 5 and represents a significant development in one of
the oil industry’s biggest corruption scandals.
Prosecutors are expected to
delve into the operations of
the two companies and more
widely into an industry that
often operates in countries
where graft is pervasive like
Nigeria. The oil industry has
long faced charges of corruption though trials have rarely
reached into the very upper
echelons of management of giants like Shell and Eni.
Other executives indicted
include Paolo Scaroni, Eni’s
CEO at the time of the deal,
and Malcolm Brinded, Shell’s
global exploration and production chief at the time of the
deal.
Eni’s board of directors said
it had “full confidence” that
Mr. Descalzi wasn’t involved in
illegal conduct and “reaffirmed
its confidence that the company wasn’t involved in alleged corrupt activities.” Eni
said it reached these conclusions after several independent investigations into the
matter.
“We aren’t happy that this
is going to trial, but now there
will be the judicial process and
the company and Descalzi will
have the opportunity to defend
themselves,” Eni Chairwoman
Emma Marcegaglia said in an
interview.
Shell said it was “disappointed” by the indictment,
but that it believes a trial will
show there is no case against
the company or its former employees. “There is no place for
bribery or corruption in our
company.”
Mr. Scaroni, who is no longer at Eni, declined to comment. In the past he has denied any wrongdoing.
Mr. Brinded, who has since
left Shell, said through a
spokesman: “I have done nothing wrong and believe that will
become clear in any legal proceedings.”
The trial is likely to last
about 18 months. The decision
can be appealed twice.
LONDON—Kuwait
said
Wednesday it was investigating a military helicopter deal
with Airbus SE, adding to the
pressure on the European
aerospace giant that is facing
management turnover and
multiple fraud investigations.
A Kuwaiti government
spokesman said a deal for military transport helicopters was
referred to the country’s National Anti-Corruption Commission as well as the State
Audit Bureau on request of the
prime minister, according to
Kuwait’s state news agency,
KUNA. Airbus had no comment.
Airbus in recent years announced two deals with Kuwait for the helicopter type
that is the subject of the
probe. It disclosed a deal for
24 of them in 2015 and another for a further 30 last
year. Both deals have a price
tag over $1 billion. It wasn’t
immediately clear which deal
was under review or the nature of the alleged infraction.
Accusations of corruption
and other wrongdoing have
put Airbus, Europe’s largest
plane and helicopter maker, in
the crosshairs of regulators,
including in the U.S. French
authorities in November
raided Airbus’s offices as part
of an investigation into business conducted in Kazakhstan.
In the U.S., France and Britain, authorities also are investigating the company’s unsanctioned use of middlemen
to win deals.
In Austria, its actions are
being investigated about alleged misdeeds in a combat-jet
deal more than a decade ago.
Chief Executive Tom Enders is
among those being investigated. Airbus has said it is cooperating with the probes.
Airbus said last week Mr.
Enders would leave the company at the end of his current
contract in 2019. The company
said the move was part of its
succession planning.
Also leaving Airbus is commercial-plane boss Fabrice
Brégier, who will exit next
year, the company said. He is
being succeeded by Guillaume
Faury, head of Airbus’s helicopter business.
Mr. Enders has warned that
resolving the regulatory issues
could take years and be costly.
—Nicolas Parasie
contributed to this article.
REGIS DUVIGNAU/REUTERS
GEORGE OSODI/BLOOMBERG NEWS
n-
BY ROBERT WALL
no
Alexandre Furtado Montes, an
analyst at Rio de Janeirobased consulting firm Lopes
Filho.
He said Oi will need to
speed up investment to catch
up with competitors that are
“swimming in cash.”
Oi Chief Executive Eurico
Teles said the company is
open to being bought, and that
it has already seen interest
from Chinese investors.
Oi, a word that means “hi”
in colloquial Portuguese, had
been seen as a potential national champion that could
eventually become a global
player. It grew to become Brazil’s fourth-largest mobile operator by market share but
failed to keep pace with foreign competitors in Brazil’s
market because it didn’t have
the same financial resources.
Aiming to strengthen Oi´s
capital structure, creditors
agreed to infuse the telecom
with $1.2 billion in cash and
possibly to seek an additional
$760 million from capital markets. The new money will allow Oi to increase planned investments from $1.5 billion a
year to $2.1 billion a year over
the next three years.
Oi’s rescue is still likely to
face legal challenges. Brazilian
telecom regulator Anatel is
one of Oi’s creditors because
of the billions of Brazilian
reais the company owes Anatel and other government
agencies for fines related to
regulatory and other infractions. Anatel said Wednesday
it opposed the agreement and
will try to block it in court.
The accord would permit Oi to
pay the fines over 20 years,
and Anatel says that installment plan is illegal.
Mr. Teles, who according to
the terms of the plan is set to
be replaced as CEO in about a
year, vowed that “Oi will return to occupy a prominent
place in the market and to be
recognized for the importance
it has for the country.”
—Jeffrey T. Lewis
contributed to this article.
1.25 billion
ly
.
Americans are ordering
more than ever from Amazon.com Inc. this holiday season—but they may have fewer
boxes on their doorsteps.
Amazon is trying to ship
each order in one correctly
sized package instead of multiple boxes, responding to rising shipping costs and consumers’ concern about the
environmental impact and
general nuisance of all that
cardboard. That means adding
bubble envelopes, tweaking algorithms and negotiating with
manufacturers
to
make
smaller packaging specifically
for online sales, not store
shelves.
“There’s a lot of pressure to
come up with solutions that
eliminate a box,” said Ken
Chrisman of Sealed Air Corp.,
which designs packaging materials for retailers, manufacturers and logistics firms, including United Parcel Service Inc.,
XPO Logistics Inc., Wal-Mart
Stores Inc., Costco Wholesale
Corp. and Kroger Co.
Donnarie Hales of Raleigh,
N.C., does almost all her shopping online—and her recycling
bin proves it. She stacks up
box overflow in her garage
since the recycling truck
comes only every other week.
“It’s a lot of cardboard,” the
35-year-old product manager
said.
Ms. Hales said she has noticed that Amazon seems to be
shipping items in fewer,
smaller packages. Still, she
said she occasionally gets a
big box with a tiny item inside. Receiving orders item by
item “drives me up the wall,”
she said.
This year, Amazon added
machines in its warehouses
that create padded mailers on
demand to fit smaller items,
all of which used to go into
the company’s smallest-sized
co Fo
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SÃO PAULO—Brazilian telecommunications company Oi
SA, which last year filed Latin
America’s largest-ever corporate bankruptcy, said Wednesday its creditors approved a
rescue plan that would cut its
$20 billion debt with a restructuring that could give the
creditors up to a 75% stake in
the firm.
Oi’s lenders and other creditors agreed during a 15-hour
meeting in Rio de Janeiro to
slash the company’s debt and
to inject cash to boost investment in newer technology, Oi
said Wednesday in a statement.
Oi’s preferred shares closed
up 6%.
Oi, which emerged from a
round of telecommunications
privatizations that took place
in Brazil in the late 1990s,
filed for bankruptcy protection
in June 2016 after accumulating billions of dollars in debt
to complete two mergers, first
with Brasil Telecom and later
with Portuguese company Portugal Telecom, which failed to
generate sufficient cash to
fund its investments needs.
The rescue plan, which still
needs a judge’s approval, will
cut Oi’s financial debt to $7.2
billion from around $15 billion.
It will also reduce the amount
the telecom owes to suppliers,
employees and government
agencies. The judge is expected to rule on the plan in
February.
After the debt is cut, bondholders will have the option to
convert the remainder of the
money owed to them into
shares. If all the convertible
debt is exchanged, creditors
will end up owning 75% of the
company, according to the
plan.
“Without this approval, Oi
would have gone bankrupt…but I continue to be
skeptical of its future,” said
Hard to Contain
Airbus, led by Tom Enders, is dealing with multiple investigations.
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 | Thursday, December 21, 2017
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Coinbase Plans Probe of Trading
Bitcoin Cash surged
before the platform
enabled trades, raising
front-running suspicions
BY TRIPP MICKLE
Some hedge-fund managers
are warming up to bitcoin after facing losses in traditional
investing. Michael Novogratz,
the investor who announced he
was leaving Fortress Investment Group in 2015 after
losses, has been a vocal bitcoin
investor for more than a year.
Last week, John Burbank’s
Passport Capital, which has
struggled for years and has
had clients flee, said in a letter
to investors that it would close
‘I call it an emerging,
historically and
sociologically unique
asset class...’
its main fund. People close to
the matter said Passport will
launch a new arm focused on
trading cryptocurrencies.
The introduction of bitcoinbased futures by CME Group
and Cboe Global Markets Inc.
adds to the legitimacy of the
currency for some big investors, though the volume of futures contracts so far is small
relative to that in the bitcoin
spot market.
Mr. Stahl of Horizon said if
the futures catch on, “bitcoin
becomes an institutionally
no
Continued from page B1
as Ellington Management
Group, which manages $6.5
billion and has focused on
debt investments, are examining trading cryptocurrencies
but haven’t yet decided to
jump in, people familiar with
the matter said.
“Cryptocurrencies can protect against high inflation and
capital controls.…And they may
prove themselves as safe havens in the next crisis,” argued
Rasheed Sabar, Ellington’s head
of systematic strategies, in a
recent white paper circulated
to the firm’s investors. “We can
think of them as an insurance
policy against low-trust states
of the world….At the same
time, they may have gone up
too far too fast.”
Already, around 20 funds,
managing a total of roughly $2
billion in assets, solely or predominantly trade cryptocurrencies, as tracked by an index
compiled by Chicago-based
data group HFR. The asset total highlights how it has
largely been smaller funds
that have traded bitcoin,
though HFR President Kenneth
Heinz said the number of
funds could double in size in
the first quarter next year.
Fast Start
Bitcoin Cash prices
$4,000
Coinbase announces
start of trading
3,500
3,000
2,500
2,000
Dec. 19
noon
20
initial announcement, according to data from CoinMarketCap. They jumped an additional 20% in the 75 minutes
before trading was enabled on
Coinbase’s GDAX exchange.
The price moves raised suspicions among some market
participants of front-running—
a practice in which someone
with advance knowledge of a
major market order buys for
his own account, then earns a
profit when the larger transaction drives up the price—by
individuals who may have
known of Coinbase’s plans
ahead of time.
“Insider trading of crypto is
so obvious,” Brian Hoffman,
the chief executive of Open
Bazaar, an online retail site
that uses bitcoin, wrote on
Twitter.
Coinbase in a blog post said
it “maintains a strict trading
policy and internal guidelines
for employees.” In bold font,
the company added: “Coinbase
employees have been prohibited from trading in Bitcoin
Cash for several weeks.”
In another post several
hours later, Brian Armstrong,
chief executive of Coinbase,
said there was “no indication
of any wrongdoing at this
time,” but added the company’s policy states employees
and contractors aren’t allowed
to trade on “material nonpublic information,” a term commonly used to describe potentially
market-moving
information.
Mr. Armstrong said Coinbase will be conducting an investigation into the price increase of Bitcoin Cash. “If we
find evidence of any employee
or contractor violating our
policies—directly or indirectly—I will not hesitate to
terminate the employee immediately and take appropriate
legal action,” he wrote.
Note: all times New York time
Source: CoinMarketCap
THE WALL STREET JOURNAL.
The abrupt trading halt
prompted a flurry of speculation from market participants
about the timeline of preceding events. Bitcoin Cash prices
had climbed 28% in the 24
hours preceding Coinbase’s
tradable security, not just an
esoteric, fringe idea.”
Futures also give big investors a potential way to wager
against bitcoin, something
they weren’t previously able to
do easily.
It is an open question,
though, whether the new interest from the big funds will push
bitcoin higher or lead to a
sharp correction. Markets
sometimes soar until sophisticated investors gain an opportunity to short, or bet against,
them.
Some large investors continue to drag their feet. Cubist
and its sister firm, Point72
Asset Management, for example, have decided not to trade
bitcoin or bitcoin futures until
the investments have a longer
record, people close to the
matter said.
Cantab Capital, a Cambridge, England-based quant
firm managing $4 billion, has
been studying bitcoin trading
and blockchain technology for
more than a year. But Ewan
Kirk, the firm’s founder, said
Cantab will remain on the
sidelines until enough volume
emerges in futures trading so
Cantab can get in and out of a
position easily. He would like
to see other trading anomalies
disappear, as well.
—Laurence Fletcher
contributed to this article.
A Million-Dollar Bet
Digital Currency
Will Top $50,000
right to buy 275 bitcoins for
$50,000 apiece—a transaction
that would cost about $13.8
million.
Such a trade could be lucrative if the digital currency skyrockets to $500,000 or even $1
million or more—something
some of bitcoin’s most enthusiastic supporters say will happen.
The digital currency was trading
at $16,280.24 late Wednesday
afternoon, according to CoinDesk. It is up more than 1,500%
from the beginning of this year,
an extraordinary run-up that has
unleashed a flood of investor interest. But skeptics such as Nobel Prize-winning economist Joseph Stiglitz call bitcoin a
bubble whose price will crash.
LedgerX Chief Executive
Paul Chou declined to identify
who was behind the big calloptions play, citing regulatory
restrictions. But the scale of
the purchasing reflects the
mounting interest of hedge
funds and other big financial
firms in cryptocurrencies, he
said. “Without a doubt, there
are institutions out there that
are looking at these types of
trades or have done these
types of trades,” Mr. Chou said.
“It’s not an individual, let’s put
it that way.”
—Alexander Osipovich
and Gunjan Banerji
STERN
Continued from page B1
directly from the printer. No
dice? Buy a cord and plug in
the computer.
‘Not enough iCloud
storage’ Make it stop!
You can stop the madness
by upgrading your iCloud
storage (50GB for $1/month;
200 GB for $3; 2TB for $10).
But before you pay Apple
even more, see what’s gobbling up space. Tap the Apple
ID account at the top of Settings. Select iCloud > Manage
Storage. If you don’t need to
save some stuff forever, select
it then delete data. For many
family members, one of the
biggest clogs are the iPhone’s
backups; you can usually delete older ones. Another hog
can be photos and videos. If
you prefer not to pay for
iCloud, download the free
Google Photos.
That face-scanning
iPhone is made by Big
Brother!
Nope, the iPhone X is still
made by Apple—and Face ID
Someone out there just
made a bet that bitcoin will
surge above $50,000 next year,
trading data show—about triple
its current price.
Daily trading records released Wednesday by LedgerX,
a startup electronic market for
bitcoin derivatives, show that
an unidentified trader or traders entered the bullish bets using bitcoin call options that expire next December. The trade
wagering on a move to
$50,000 was the first of its
kind on LedgerX.
Just under $1 million was
paid for the options in one or
more trades that took place
during the 24-hour period
ended at 4 p.m. Eastern Time
on Wednesday, the records
show. It is unclear from
LedgerX’s data who the buyer
or buyers were or whether the
purchasing was done in multiple transactions or just one.
If bitcoin is below $50,000
on Dec. 28, 2018, the options
will expire worthless, and the
$1 million will be lost. If bitcoin
rises above that level, the options will give their owners the
is not that creepy. When you
set it up, the depth-sensing
camera system scans your
face and saves it on the
phone, not on Apple’s servers.
What [insert gadget]
should I buy?
TV? When in doubt, pick
Samsung. Windows laptop?
Wait until 2018. New models
are expected next month.
Chromebook? A Samsung
Chromebook Pro. iPhone? An
iPhone X if you need the best;
an iPhone 7 if you just need
good. Android? A Galaxy S8.
Streaming video box? A Roku
Streaming Stick+ or 4K Apple
TV—the latter is best if you
have an iPhone and lots of
iTunes purchases. Router?
See below.
Can I put bitcoins in my
pocket?
No. Despite what you see
in the photos that accompany
news stories, there are no bitcoin coins. It’s generally
thought of as a currency but
it’s actually software. Though
its value has skyrocketed in
recent months, it’s less of a
way to buy things and more
of a way for people to exchange value on the internet.
Apple Inc., facing questions from users and tech analysts about reduced performance in older iPhones,
acknowledged
Wednesday
that its latest software curtails the computing power of
some models to prevent unexpected shutdowns.
It was a rare statement
from the company that shed
light on how Apple internally
dealt with a growing user
complaint.
The statement came two
days after John Poole,
founder of the computer-performance testing group Geekbench, wrote a blog post illustrating
how
iPhone
computing performance slows
as battery health declines on
iPhone 6s and iPhone 7 devices.
Apple said that as iPhone
batteries age, or in certain
conditions such as cold
weather or at low charge,
they can struggle to respond
to a phone’s power demands.
This can cause the device to
unexpectedly shut down to
protect “its electronic components,” the company said.
To prevent iPhone 6,
iPhone 6s and SE devices
from powering off—something that drew complaints
last year from Chinese consumer-protection groups—Apple said it tweaked its iPhone
operating system, iOS, to slow
certain tasks that required
more computing power than
the device could provide.
Evidence of the software
change could be seen in
power-intensive tasks— such
as creating Snapchat filters—
that became slower in order
to demand less of the system.
“Our goal is to deliver the
best experience for customers, which includes overall
performance and prolonging
the life of their devices,” Apple wrote, adding that it recently extended the feature to
iPhone 7 devices with its iOS
11.2 software update.
Battery life and processing
speed are two of the most important features for smartphone users, according to a
survey of smartphone buyers
by investment bank UBS.
Owners of iPhones have complained for years that their
batteries worsen after they
update to a new iOS.
Apple has said that battery
life may initially decrease after an update as an iPhone rebuilds indexes and caches, but
that battery health returns to
previous levels within days.
Apple’s newest software,
iOS 11, has been troubled by a
number of bugs, including one
that turned the letter “I” into
a question mark and another
that crashed some iPhones
when third-party apps sent
notifications.
Mr. Poole said many customers, after updating to iOS
11, believe their iPhone is
slower because it is old and
needs to be replaced, but he
said they would be better off
replacing the battery.
ly
.
Trading of the alternative currency was previously limited
to smaller platforms.
Trading of Bitcoin Cash on
Coinbase’s systems was enabled about an hour and 15
minutes after Coinbase said
the currency would go live on
its platform. Shortly after the
kickoff, the price skyrocketed,
with Coinbase’s online exchange GDAX showing quotes
as high as $9,500, more than
triple what Bitcoin Cash
trades at on other exchanges.
After Coinbase announced
the halt, a company representative said unfilled orders
would be removed and no
new orders would be accepted. GDAX said all of its
Bitcoin Cash markets would
remain offline until noon
Wednesday, Eastern time.
GDAX later said it paused
trading because of significant
volatility “to ensure a fair and
orderly market.”
co Fo
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BITCOIN
Data connector cables are attached to a circuit board at a cryptocurrency mining facility. Prices of Bitcoin and its offshoot have surged.
n-
One of the world’s largest
cryptocurrency platforms said
it would investigate allegations of insider trading after
the price of a bitcoin offshoot
called Bitcoin Cash climbed in
value before the platform began facilitating trades in the
alternative currency.
The launch of Bitcoin Cash
contributed to the price on the
original bitcoin falling about
$2,000 in less than an hour, to
below $15,700, before recovering. Bitcoin recently traded
around $16,250 but has
dropped from a recent high of
nearly $20,000 this past weekend.
Coinbase Inc., a San Francisco-based company that
maintains a widely used bitcoin trading app, told its users
at 7 p.m. Eastern time Tuesday that they would be able to
buy and sell Bitcoin Cash on
its systems later that evening.
Bitcoin
Cash
prices
surged from the get-go, and
the company halted trading of
the currency four minutes after trading began. Hours later,
Coinbase announced an investigation into whether any employees, contractors or their
friends and family used confidential information about its
plans to trade Bitcoin Cash before its announcement.
Bitcoin Cash is an alternative version of bitcoin and was
created in August when it was,
in effect, split off from the
popular cryptocurrency. Many
bitcoin holders were given Bitcoin Cash, similar to when a
company spins off a business.
SEONGJOON CHO/BLOOMBERG NEWS
BY STEVEN RUSSOLILLO
AND GREGOR STUART HUNTER
Apple Cuts
Capacity
Of Older
iPhones
Where do you actually get
bitcoin? Well, the easiest way
is to get an online “wallet”
and buy some on an exchange. But unless family
members are technically and
financially savvy, guide them
to investing in something a
little less volatile and easier
to understand.
Do hackers have my
passwords?
ask for money. Don’t click
links directly from emails to
log into services—instead, log
in your usual way. If you get a
suspicious email, call the
bank or service using a
known number, one that isn’t
in the email. And don’t open
any email attachment unless
you’re 100% sure it’s legitimate.
The internet conks out
more than Grandpa!
If you’ve been using the
same Yahoo password since
the Year 2000, then yep. It’s
time to stop reusing passwords. Make a list of your top
services and change each
password to something different. Then set up a password
manager, a phone or computer app that securely stores
all the passwords. I recommend Dashlane and
1Password.
You should also turn on an
extra layer of security called
two-factor authentication,
which is available on most
services.
That could be because the
router is older than Grandpa’s
La-Z-Boy. If your family has
had the same router for over
five years, time for a new one.
But not the one your provider
wants to rent you. In a bigger
home, go for Netgear Orbi,
which creates a mesh with no
dead zones. Place the main
router in the center of the
home and satellites throughout the house. Meanwhile,
here’s a secret trick: If the
connection drops, unplug the
old router... and plug it back
in again.
Is this email really from
my bank?
Why is your voice mail
always full?
It may not be. Be suspicious of official-looking
emails that make threats or
I keep it full so that no one
leaves me messages, Ma. Text
and I’ll call you back.
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.
Thursday, December 21, 2017 | B5
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THE WALL STREET JOURNAL.
B6 | Thursday, December 21, 2017
MANAGEMENT
ADVERTISEMENT
Legal Notices
CEOs Face New Office Dynamics
To advertise: 800-366-3975 or WSJ.com/classifieds
Executives re-examine how they interact with their employees
BANKRUPTCIES
BY VANESSA FUHRMANS
AND RACHEL FEINTZEIG
avoiding all physical contact
with them. But he said he
has become attuned to waiting for cues before doing so.
“If they start with an embrace, then I’ll embrace,” he
said. “But it’s not the person
of power making the choice.”
Still, anxiety persists
among some business leaders about where to draw the
line between collegial friendliness and potentially uncomfortable behavior. Kim
Scott, an executive coach,
said one client has become
sensitive to approaching a
woman from behind. A few
others said they now make
sure the door is open during
one-on-one meetings with female colleagues.
Ms. Scott has counseled a
few men not to overreact.
“I tell them if it’s a private conversation, then have
a closed door,” said Ms.
Scott, whose recent book
“Radical Candor” discusses
how to have honest conversations at work.
The mood at companies
right now is one of “extreme
paranoia,” said Aaron Goldstein, an attorney with
cause she is waiting for data
from a colleague to a store
cashier without customers to
check out. More than threequarters of the 1,003 workers surveyed across 29 occupational categories said they
experience idle time at work,
while nearly 22% said it happens daily.
To reach the $100 billion
figure, researchers multiplied the average yearly idle
time by the number of Americans who work full-time
outside of their homes by
the median U.S. wage of
$17.09 an hour. They said the
survey was representative of
the American workforce in
terms of regions, gender,
age, race, education and
other factors.
In theory, downtime at
work has benefits. Workers
are free if an unexpected
task pops up, said Andrew
Brodsky, an author of the
paper and assistant professor at the University of
Texas at Austin’s McCombs
School of Business. Furthermore, true work breaks help
workers recharge and protect against burnout.
But in practice, the advantages of idle time are limited, Mr. Brodsky said. Workers don’t like being bored.
So when they have too little
work, they tend to stretch it
to fill the time, he said.
They also don’t want to
appear idle, for fear of jeopardizing their jobs.
Throwing more work at
employees likely won’t solve
the problem, Mr. Brodsky
cautions. Since it is hard to
tell who has idle time, managers would probably end up
overloading some people. Instead, employers should encourage workers to be open
about their lulls so bosses
know who is free, he said.
Corporate leaders also
should push workers to take
a break when they have free
time, Mr. Brodsky said. The
researchers found that when
those with too much time
were allowed to use the internet once they wrapped up
their task, they didn’t slow
their pace as much.
At consulting firm Bain &
Co., consultants between
projects are referred to as
being “on the beach,” said
Keith Bevans, a partner who
leads recruiting for the firm.
When lulls crop up during
a project—for example, a big
meeting gets pushed back—
consultants are often encouraged to head home early.
“You gotta find a way to
catch your breath,” Mr. Bevans said.
—Rachel Feintzeig
JUSTIN SULLIVAN/GETTY IMAGES
car Munoz recently met with
a women’s resources group
at the airline; he signed a
letter to workers about sexual harassment, “Humbly,
Oscar.” At Fidelity Investments, CEO Abigail Johnson
moved her office from the
executive suite to a different
floor where portfolio managers and traders sit after two
mutual-fund managers were
accused of misconduct.
Patrick Quinlan, CEO of
ethics-and-compliance software firm Convercent Inc.,
said he has sought to intervene immediately—and
openly—if a colleague says
or does something that
might make others uncomfortable. This month, when
one employee used a genderspecific slur to voice frustration at a meeting, he didn’t
wait until later to privately
coach the person, as he once
did. “I said, ‘I think you
should rethink that sentence,
and if you could rephrase it,
I’d appreciate it,’ ” he said.
A self-professed hugger by
nature, Mr. Quinlan said he
doesn’t want to treat female
employees differently by
United’s Oscar Munoz recently signed a letter to staff ‘Humbly, Oscar.’
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
As companies pay more
attention to the role of
power in sexual harassment,
few people are rethinking
their interactions more than
the most powerful person in
the office.
Take David Steinberg, the
chief executive of marketingtech firm Zeta Global. On a
visit last month to the San
Francisco offices of a newly
acquired startup, Disqus,
several employees asked to
take selfies with him.
In every selfie with
women, the entrepreneur
says, he consciously refrained from putting his arm
around them—even though
in photos that would be a
natural action for him. “It
was not about me being worried about getting in trouble—I didn’t want to make
them feel uncomfortable,”
Mr. Steinberg said.
Across corner offices and
executive suites, CEOs are
confronting the prevalence
of sexual misconduct in the
workplace after allegations
against dozens of powerful
men. Some CEOs say the
personal stories of women,
and some men, describing
disrespect, intimidation and
even assault at work have
reawakened them to the lopsided power dynamics of
their own workplace relationships and the outsize influence of their words and
actions on employees.
Many corporate leaders
are re-examining how they
engage with colleagues and
employees. In some instances, they are taking
more precautions with physical contact or closed-door
meetings. In others, they are
more forcefully calling out
questionable behavior.
Their shift in behavior is
manifesting itself in ways
big and small. United Continental Holdings Inc. CEO Os-
Dorsey & Whitney LLP who
represents employers on labor issues. Some employees
have told him they will no
longer be alone in the room
with a person of the opposite sex, he said. One executive said he wouldn’t hire
any more men until the company had a certain number
of women, which Mr. Goldstein informed him was just
as illegal as refraining from
hiring women. “We’re in the
midst of extremely rapidly
changing social norms,” Mr.
Goldstein said. “What’s acceptable, what’s not acceptable…what will get you in
trouble; what won’t.”
Some CEOs worry that
anxiety could prompt men to
pull back too much, reducing
women’s influence and even
compromising business
should diversity erode.
Among women CEOs,
some say the public conversation around sexual harassment has colored their interactions with men. Sophie
Bellon, chairwoman of global
food-services and facilitiesmanagement company Sodexo SA, recalled how, at a
recent gala in New York, a
businessman quipped about
making sure not to touch her
as they posed for a picture.
“I think the majority of
men are behaving the right
way and they want to make
sure that women know that,”
Ms. Bellon said.
Christa Quarles, CEO of
restaurant-booking site
OpenTable Inc., said she has
been trying to foster conversations at work about sexual
misconduct. She estimates
she has talked to more than
10 men inside and outside
the company about the topic
in recent weeks, including a
few executives who have
asked her for guidance.
“The male CEOs are looking and say, ‘Help me be sensitive. Help me find the right
words,’ ” she said. “I think it
is scary for men right now.”
ly
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WORKAROUND
Working Hard or
Hardly Working?
The Cost Adds Up
American workers are
spending hours doing nothing, and it is costing their
companies over $100 billion
a year, a new study says.
Employers are paying that
much in wages for so-called
idle time—those periods
when employees are on the
clock but unable to get any
work done, according to research to soon be published
in the Journal of Applied
Psychology.
The problem crosses industries and occupations,
ranging from an investment
banker who can’t finish a
PowerPoint presentation be-
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
#
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/ (.; 238, ' @
"& ## 55&' Wednesday, December 20, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
43.74
Ultra
American Funds Cl A
31.53
AmcpA p
40.74
AMutlA p
27.05
BalA p
12.84
BondA p
63.82
CapIBA p
50.80
CapWGrA
EupacA p
57.11
61.97
FdInvA p
GwthA p
49.47
10.37
HI TrA p
ICAA p
40.32
23.22
IncoA p
45.32
N PerA p
48.58
NEcoA p
67.45
NwWrldA
55.40
SmCpA p
12.95
TxExA p
WshA p
45.54
Baird Funds
AggBdInst
10.84
11.19
CorBdInst
BlackRock Funds A
19.62
GlblAlloc p
BlackRock Funds Inst
22.71
EqtyDivd
19.73
GlblAlloc
StratIncOpptyIns 9.94
Bridge Builder Trust
CoreBond
NA
Dimensional Fds
10.86
5GlbFxdInc
30.46
EmgMktVa
EmMktCorEq 22.65
14.34
IntlCoreEq
20.26
IntlVal
IntSmCo
20.87
22.54
IntSmVa
US CoreEq1
22.81
US CoreEq2 21.58
US Small
36.05
US SmCpVal 37.97
24.84 +0.11
US TgdVal
-0.11 32.9 USLgVa
39.05 +0.15
Dodge & Cox
+0.04 22.2 Balanced
106.57 +0.01
-0.01 17.5 Income
13.71 -0.02
-0.04 15.0 Intl Stk
45.65 -0.12
-0.02 2.8 Stock
202.88 +0.11
-0.17 13.5 DoubleLine Funds
-2.75 23.6 TotRetBdI
10.62 -0.01
-0.18 29.2 Edgewood Growth Instituti
-3.79 22.9 EdgewoodGrInst 29.71 -0.45
-3.47 26.0 Federated Instl
... 6.5 StraValDivIS
6.12 -0.02
-0.03 19.5 Fidelity
-0.03 12.6 500IdxInst
93.61 -0.07
-0.13 28.3 500IdxInstPrem 93.61 -0.07
+0.03 35.1 500IdxPrem 93.61 -0.07
-0.07 31.1 ExtMktIdxPrem r 61.92 +0.10
-2.35 25.9 IntlIdxPrem r 42.75 -0.10
-0.03 4.7 SAIUSLgCpIndxFd 14.42 -0.01
-0.01 19.9 TMktIdxF r
76.45 -0.02
TMktIdxPrem 76.45 -0.02
-0.02 3.6 USBdIdxInstPrem 11.53 -0.03
-0.02 4.0 Fidelity Advisor I
NwInsghtI
32.01 -0.04
... 12.9 Fidelity Freedom
FF2020
16.96 -0.01
... 16.4 FF2025
14.70 -0.02
... 13.1 FF2030
18.48 -0.02
... 4.6 Freedom2020 K 16.96 -0.02
Freedom2025 K 14.70 -0.02
... NA Freedom2030 K 18.49 -0.02
Freedom2035 K 15.57 -0.01
-0.01 1.9 Freedom2040 K 10.95
...
+0.09 30.5 Fidelity Invest
+0.02 33.2 Balanc
23.69 -0.02
+0.02 26.3 BluCh
88.31 -0.07
+0.06 24.7 Contra
122.86 -0.28
+0.04 27.8 ContraK
122.79 -0.27
+0.09 25.6 CpInc r
10.32 +0.01
+0.02 21.1 DivIntl
39.57 -0.14
+0.04 19.0 GroCo
187.90 -0.35
+0.10 11.9 GrowCoK
187.88 -0.35
+0.16 7.4 InvGB
7.89 -0.01
Net YTD
NAV Chg % Ret Fund
Lazard Instl
EmgMktEq
Data provided by
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
NOTICE OF SALE
Fund
9.4 InvGrBd
18.8 LowP r
12.1
4.0
22.2
17.9
3.4
35.5
14.1
22.0
22.0
22.0
17.9
24.1
22.0
21.3
21.3
2.9
28.2
15.0
16.1
19.0
NS
NS
NS
NS
NS
16.3
36.9
32.7
32.8
11.4
25.2
37.4
37.5
3.3
Net YTD
NAV Chg % Ret
11.21 -0.03
54.04 +0.15
LowPriStkK r 53.99 +0.15
104.77 -0.02
MagIn
110.98 -0.28
OTC
23.38 -0.02
Puritn
SrsEmrgMkt 20.96 +0.03
SrsGroCoRetail 16.70 -0.03
15.94 -0.05
SrsIntlGrw
SrsIntlVal
10.61 -0.02
10.61 -0.02
TotalBond
First Eagle Funds
58.64 +0.06
GlbA
FPA Funds
34.62 +0.09
FPACres
FrankTemp/Frank Adv
2.35
...
IncomeAdv
FrankTemp/Franklin A
7.42 -0.02
CA TF A p
2.37
...
IncomeA p
RisDv A p
61.06 +0.03
FrankTemp/Franklin C
Income C t
2.40
...
FrankTemp/Temp A
12.07 +0.01
GlBond A p
Growth A p 27.05 -0.06
FrankTemp/Temp Adv
GlBondAdv p 12.02 +0.01
Harbor Funds
CapApInst
69.68 -0.07
67.07 -0.14
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.93 +0.01
EqIncA
John Hancock Class 1
16.20 -0.01
LSBalncd
17.46 -0.01
LSGwth
John Hancock Instl
23.25 +0.05
DispValMCI
JPMorgan Funds
40.15 -0.35
MdCpVal L
JPMorgan R Class
11.55 -0.03
CoreBond
3.7
19.6
19.7
26.8
40.0
18.5
37.5
38.1
28.5
19.5
3.6
12.7
10.2
8.2
5.1
8.0
20.1
7.8
3.9
16.9
4.1
37.1
22.1
NA
10.6
14.7
18.8
15.3
13.3
3.3
19.89 -0.04
Loomis Sayles Fds
13.72
...
LSBondI
Lord Abbett A
NA
...
ShtDurIncmA p
Lord Abbett F
ShtDurIncm
NA
...
Metropolitan West
10.61 -0.02
TotRetBd
10.61 -0.02
TotRetBdI
TRBdPlan
9.98 -0.02
MFS Funds Class I
42.08 -0.09
ValueI
MFS Funds Instl
25.16 -0.11
IntlEq
Mutual Series
GlbDiscA
32.83 -0.10
Oakmark Funds Invest
32.17 +0.04
EqtyInc r
84.31 +0.12
Oakmark
28.16 -0.07
OakmrkInt
Old Westbury Fds
LrgCpStr
14.36 -0.03
Oppenheimer Y
41.84 -0.05
DevMktY
43.20 -0.09
IntGrowY
Parnassus Fds
ParnEqFd
43.18 -0.10
PIMCO Fds Instl
NA
...
AllAsset
10.21 -0.01
TotRt
PIMCO Funds A
IncomeFd
12.39 -0.01
PIMCO Funds D
12.39 -0.01
IncomeFd
PIMCO Funds Instl
12.39 -0.01
IncomeFd
PIMCO Funds P
IncomeP
12.39 -0.01
Price Funds
96.81 -0.28
BlChip
28.31 -0.05
CapApp
33.32 -0.04
EqInc
EqIndex
71.84 -0.05
63.00 -0.17
Growth
70.22 +0.07
HelSci
37.12 -0.12
InstlCapG
18.44 -0.05
IntlStk
IntlValEq
14.97 -0.01
87.36 -0.01
MCapGro
30.14 +0.06
MCapVal
52.54 +0.05
N Horiz
9.45 -0.02
N Inc
OverS SF r
11.22 -0.02
23.53 -0.04
R2020
18.18 -0.02
R2025
26.82 -0.04
R2030
19.63 -0.03
R2035
Net YTD
NAV Chg % Ret Fund
R2040
28.23 -0.04
25.3 Value
37.35 -0.08
PRIMECAP Odyssey Fds
7.2 AggGrowth r 44.66 +0.26
37.58 +0.12
Growth r
NA Principal Investors
DivIntlInst
NA
...
NA Prudential Cl Z & I
14.47 -0.03
TRBdZ
2.5 Schwab Funds
2.9 S&P Sel
41.26 -0.03
2.9 TIAA/CREF Funds
EqIdxInst
19.68
...
17.4 IntlEqIdxInst 19.99 -0.04
Tweedy Browne Fds
26.5 GblValue
28.70 -0.04
VANGUARD ADMIRAL
9.1 500Adml
248.44 -0.17
34.85 -0.04
BalAdml
14.4 CAITAdml
11.70 -0.03
21.1 CapOpAdml r 155.30 +0.39
27.9 EMAdmr
37.22 -0.17
EqIncAdml
77.76 -0.06
18.6
ExplrAdml
88.31 +0.12
84.60 -0.28
ExtndAdml
31.6
GNMAAdml 10.44 -0.01
25.7
72.65 -0.39
GrwthAdml
HlthCareAdml r 86.52 -4.39
17.4
HYCorAdml r 5.91
...
25.72 -0.07
InfProAd
NA
94.54 -0.35
IntlGrAdml
4.4
ITBondAdml 11.32 -0.02
ITIGradeAdml
9.71 -0.02
7.8
LTGradeAdml 10.45 -0.08
7.9 MidCpAdml 190.95 -0.95
91.07 -0.07
MorgAdml
11.36 -0.03
8.3 MuHYAdml
14.04 -0.03
MuIntAdml
11.57 -0.04
8.2 MuLTAdml
10.87 -0.01
MuLtdAdml
15.71 -0.01
MuShtAdml
37.3
134.70
+0.34
PrmcpAdml
r
15.5
16.1 REITAdml r 115.57 -3.22
21.8 SmCapAdml 70.60 -0.22
34.4 STBondAdml 10.37 -0.01
...
27.7 STIGradeAdml 10.63
10.70 -0.03
38.6 TotBdAdml
26.6 TotIntBdIdxAdm 21.97 -0.04
19.6 TotIntlAdmIdx r 30.05 -0.32
66.79 -0.35
25.3 TotStAdml
14.23 -0.16
10.7 TxMIn r
41.39 -0.23
31.4 ValAdml
66.98 +0.05
3.5 WdsrllAdml
64.86 -0.15
26.0 WellsIAdml
75.67 -0.09
15.3 WelltnAdml
17.3 WndsrAdml
79.08 +0.20
19.0 VANGUARD FDS
20.5 DivdGro
26.51 -1.04
Net YTD
NAV Chg % Ret
205.16 -10.32
21.6 HlthCare r
19.0 INSTTRF2020 22.87 -0.03
INSTTRF2025 23.20 -0.03
34.6 INSTTRF2030 23.45 -0.02
33.2 INSTTRF2035 23.70 -0.02
INSTTRF2040 23.95 -0.02
NA INSTTRF2045 24.13 -0.01
39.46 -0.08
IntlVal
20.08 -0.03
5.7 LifeCon
33.90 -0.03
LifeGro
27.38 -0.03
22.0 LifeMod
PrmcpCor
27.09 +0.02
31.19 +0.09
SelValu
r
21.3
27.71 -0.04
24.2 STAR
10.63
...
STIGrade
16.10 -0.02
14.6 TgtRe2015
32.08 -0.04
TgtRe2020
18.86 -0.02
22.0 TgtRe2025
34.14 -0.04
13.7 TgtRe2030
21.02 -0.02
4.1 TgtRe2035
36.28 -0.03
TgtRe2040
30.6
TgtRe2045
22.82 -0.01
28.1
36.70 -0.03
18.2 TgtRe2050
13.68 -0.02
23.0 TgtRetInc
10.99 -0.02
TotIntBdIxInv
17.9
26.78 -0.06
WellsI
1.7
43.81 -0.05
28.3 Welltn
37.75 +0.02
19.4 WndsrII
VANGUARD INDEX FDS
6.8
248.38
-0.17
500
1.9
208.78 -0.69
ExtndIstPl
41.6
SmValAdml
56.89 -0.23
3.3
10.66 -0.03
TotBd2
3.7
17.97 -0.18
TotIntl
9.8
66.77 -0.34
TotSt
18.9
VANGUARD INSTL FDS
30.5
34.86 -0.04
BalInst
7.1
DevMktsIndInst 14.25 -0.16
3.9
DevMktsInxInst 22.28 -0.24
5.5
84.60 -0.28
ExtndInst
1.9
72.65 -0.39
GrwthInst
1.0
InPrSeIn
10.48 -0.03
30.7
245.11 -0.17
InstIdx
3.2
245.13 -0.18
InstPlus
15.9
60.21 -0.02
InstTStPlus
1.0
42.18 -0.21
MidCpInst
2.0
MidCpIstPl 208.03 -1.05
2.9
70.59 -0.23
SmCapInst
2.4 STIGradeInst 10.63
...
25.6 TotBdInst
10.70 -0.03
21.3 TotBdInst2
10.66 -0.03
24.8 TotBdInstPl
10.70 -0.03
17.1 TotIntBdIdxInst 32.96 -0.07
16.6 TotIntlInstIdx r 120.17 -1.27
9.5 TotItlInstPlId r 120.19 -1.27
14.3 TotStInst
66.80 -0.35
19.4 ValueInst
41.38 -0.24
Western Asset
19.2 CorePlusBdI
NA
...
19.4
13.6
15.4
17.0
18.5
20.1
20.8
26.6
10.5
18.6
14.5
27.1
19.2
17.8
1.9
11.0
13.5
15.4
16.9
18.5
20.1
20.8
20.8
8.1
2.3
9.5
14.2
16.5
21.9
17.9
11.5
2.9
25.5
21.2
13.7
24.9
24.9
17.9
28.3
1.9
22.0
22.0
21.3
18.9
18.9
15.9
2.1
3.0
2.9
3.0
2.4
25.6
25.6
21.3
17.1
NA
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 21, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24726.65 t 28.10, or 0.11%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.77 21.75
P/E estimate *
20.09 18.64
Dividend yield
2.13
2.39
All-time high 24792.20, 12/18/17
Nasdaq Composite Index
Last
2679.25 t 2.22, or 0.08%
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
6960.96 t 2.89, or 0.04%
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
2500
6500
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
22400
65-day moving average
65-day moving average
65-day moving average
2450
21700
6375
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
736.80
Utility Average
Total Stock Market
Barron's 400
728.37
Standard & Poor's
500 Index
2691.01
2676.11
2679.25
-2.22
MidCap 400
SmallCap 600
1905.77
941.06
1894.35
935.54
1899.96
938.20
2.93
1.58
Other Indexes
Russell 2000
1544.35
1536.23
1540.08
3.33
12791.66 12741.87 12747.55
0.01
563.19
560.74
562.17
1.21
NYSE Arca Biotech
4180.20
4131.86
4173.24
24.39
NYSE Arca Pharma
548.75
543.69
543.81
-4.06
KBW Bank
108.11
106.63
-0.30
PHLX§ Gold/Silver
106.79
83.21
81.70
1.44
PHLX§ Oil Service
83.01
141.84
138.30
141.47
3.51
1291.33
9.85
1274.69
8.90
1285.44
9.72
Value Line
PHLX§ Semiconductor
Cboe Volatility
17.5
5.7
774.47
651.14
10.7
10.5
5.9
27830.03 23276.73
716.60
600.24
17.7
17.4
19.1
18.8
8.8
9.8
-0.04
6994.76
6513.27
-0.13
-0.08
0.15
0.17
0.22
5383.12
4863.62
27.2
30.8
29.3
33.1
2238.83
18.3
19.7
9.0
1905.30
945.12
1660.58
815.62
13.1
10.5
14.4
12.0
9.4
11.0
Company
Volume
(000)
Symbol
Close
After Hours
% chg
High
…
PwrShrs QQQ Tr Series 1 QQQ
5,628.9 157.47
-0.06
Finl Select Sector SPDR XLF
3,539.1
27.89
…
unch.
28.11
Mobile TeleSystems ADR MBT
2,770.1
9.46
-0.24
-2.45
9.71
9.46
Kinder Morgan
KMI
2,721.8
17.76
…
unch.
17.77
17.73
Netflix
NFLX
2,675.5 188.40
-0.42
Citigroup
C
2,591.6
Alibaba Group Holding ADR BABA
unch. 267.78 266.87
-0.04 157.77 157.40
27.83
-0.22 188.82 186.78
74.70
0.04
0.05
2,526.1 172.70
0.06
0.03 172.80 171.07
75.45
Percentage gainers…
1548.92
1345.24
12.0
13.5
8.8
74.60
Veritone
VERI
98.3
26.25
2.37
9.92
26.82
23.88
Gener8 Maritime
GNRT
48.2
4.70
0.33
7.55
4.80
4.37
23.2
2.07
0.13
6.70
2.07
1.93
ChinaCache Intl Hldgs ADR CCIH
14.4
15.3
5.4
503.24
9.4
11.1
4.0
4304.77
3075.02
33.2
35.7
5.6
560.52
469.13
13.9
12.9
-0.1
...And losers
107.52
88.02
14.9
16.3
13.1
PG&E
PCG
96.72
73.03
12.7
5.3
6.2
Bed Bath Beyond
BBBY
2.54
192.66
117.79
-24.9
-23.0 -13.2
Laredo Petroleum
0.70
1341.69
16.04
901.69 40.0
9.14 -13.8
41.8 23.3
-30.8 -16.2
0.59
-0.74
-0.28
1.77
Latest
% chg
DJ Americas
641.89
Sao Paulo Bovespa 73367.03
S&P/TSX Comp
16159.67
S&P/BMV IPC
48390.39
Santiago IPSA
4183.80
YTD
% chg
0.03
0.002
0.07
1.04
0.01
0.17
–0.01
–0.05
0.94
686.67
0.16
26.32
–0.03
–12.64
–44.94 –1.06
388.37
388.88
3994.68
5352.77
13069.17
1478.37
22109.65
547.38
1129.33
10207.70
574.28
9314.83
7525.22
–2.65
–2.84
–26.19
–30.14
–146.62
4.81
–165.32
–4.65
–5.25
–26.60
–3.11
–84.34
–18.87
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6075.60
Shanghai Composite 3287.61
Hang Seng
29234.09
S&P BSE Sensex
33777.38
Nikkei Stock Avg
22891.72
Straits Times
3394.87
Kospi
2472.37
Weighted
10504.52
3.80
–8.93
–19.57
–59.36
23.72
–9.60
–6.16
37.18
–0.68
–0.73
–0.65
–0.56
–1.11
–0.74
–0.84
–0.46
–0.26
–0.54
–0.90
–0.25
0.33
21.1
21.0
22.8
18.8
21.8
5.7
6.0
29.8
7.5
11.0
10.8
10.1
13.8
0.5
14.9
13.3
–2.0
9.1
7.4
13.3
5.4
n-
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
Apollo Endosurgery
APEN
7.3
4.85
0.25
5.43
4.85
4.59
Alarm.Com Holdings
ALRM
7.6
38.09
1.55
4.24
38.17
36.54
524.5
47.50
-3.62
-7.08
51.99
44.94
2,403.2
23.34
-1.23
-5.01
26.96
22.83
LPI
108.5
9.78
-0.44
-4.29
10.23
9.78
Edison Intl
EIX
115.2
65.61
-2.69
-3.94
68.31
65.40
Intrexon Corp.
XON
24.0
11.58
-0.41
-3.42
11.99
11.58
0.06
no
–0.27
–0.07
–0.18
0.10
–0.28
–0.25
0.36
7.2
5.9
32.9
26.9
19.8
17.8
22.0
13.5
Company
Symbol
Net Element
Future FinTech Group
Siebert Financial
Ameri Holdings
Tyme Technologies
NETE
JetPay Corp.
China Finance Online ADR
Opiant Pharmaceuticals
Catalyst Biosciences
Bravo Brio Restaurant Grp
JTPY
Seven Stars Cloud Group
Eltek
Reven Housing REIT
Payment Data Systems
Molecular Templates
SSC
FTFT
SIEB
AMRH
TYME
JRJC
OPNT
CBIO
BBRG
High
19.39 14.18 272.17
4.34 1.34 44.67
20.00 5.69 39.76
3.08 0.87 39.37
7.00 1.90 37.25
24.98
8.20
21.61
9.00
9.50
2.56
1.30
1.90
1.27
1.01
52-Week
Low
% chg
Company
Symbol
145.2
-40.0
895.0
-58.9
248.3
ChinaCache Intl Hldgs ADR
China Commercial Credit
Applied DNA Sciences
Pfenex
Co-Diagnostics
CCIH
1.45
1.32
5.00
3.11
1.65
34.1
-14.4
276.2
24.6
-26.9
Intellicheck
ShiftPixy
MannKind
Broadvision
Technical Communications
IDN
5.57
4.90
4.45
3.43
9.79
1.24
0.96
0.87
0.67
1.88
28.64
24.37
24.30
24.28
23.77
7.00
8.95
6.75
4.10
11.88
1.10
2.65
3.04
1.17
3.85
331.8
22.5
-20.3
90.6
89.4
Stitch Fix Cl A
CPI Card Group
Sorrento Therapeutics
Prana Biotechnology ADR
Pangaea Logistics Solns
SFIX
Most Active Stocks
Nxt-ID
iShares MSCI Emg Markets
Intel
VanEck Vectors Gold Miner
iPath S&P 500 VIX ST Fut
NXTD
BAC
GE
XLF
SPY
EEM
INTC
GDX
VXX
83,850
80,401
73,833
66,136
58,667
117.3
17.2
-1.5
14.1
-14.6
45.75 4.02
29.48 0.10
17.45 -0.80
27.89 -0.18
267.03 -0.05
49,526
42,361
39,092
35,756
34,238
6746.0
-19.8
40.0
0.3
4.0
3.18 74.73
45.81 0.13
47.56 1.11
22.50 1.67
27.80 -0.29
52-Week
High
Low
Hawthorn Bancshares
Lehman 7-10 Year Treas
PowerSh FTSE RAFI EM
Conifer Holdings
iShs S&P Emerg Mkts Infra
Selected rates
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
t
3.00
t
2.00
1.00
0.00
3.74%
240-223-2448
Best Rate USA
Newtown Square, PA
3.75%
888-998-2451
Wednesday
t
Capital Funding Mortgage
3.75%
Newtown, PA
215-860-1513
Community Trust Bank, Inc.
3.75%
Pikeville, KY
888-443-8504
Garden State Home Loans
3.75%
Cherry Hill, NJ
609-216-7912
1
3 6
month(s)
3.00
10
2.25
5
1.50
One year ago
0.75
0
–5
0.00
–10
t
30-year fixed-rate
mortgage
The Mortgage Link, Inc.
Rockville, MD
15%
1 2 3 5 710
years
maturity
30
Euro
s
4.00%
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
1.59
1.66
Money market, annual yield
0.34
0.34
Five-year CD, annual yield
1.49
1.50
30-year mortgage, fixed†
3.92
3.92
15-year mortgage, fixed†
3.32
3.37
Jumbo mortgages, $424,100-plus† 4.31
4.31
Five-year adj mortgage (ARM)† 3.87
3.77
New-car loan, 48-month
3.32
3.34
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
l
1.00
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
1.66
0.36
1.50
4.33
3.50
4.87
3.93
3.36
1.25
1.25
1.41
-0.09
-0.01
-0.17
0.02
-0.09
0.47
0.32
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1451.662
2.311
2.191
2.311
1.818
2.711 1.350
10-yr Treasury, Ryan ALM 1715.208
DJ Corporate
379.264
Aggregate, Barclays Capital 1934.040
High Yield 100, Merrill Lynch 2854.762
Fixed-Rate MBS, Barclays 1980.980
Muni Master, Merrill
518.583
2.497
3.197
2.770
5.633
2.960
2.273
2.353
3.096
2.670
5.577
2.880
2.148
2.609
3.390
2.790
5.890
3.120
2.377
2.058
2.879
2.380
4.948
2.660
1.736
2.706
5.927
3.820
6.795
3.025
4.452
805.287
5.570
5.557
6.123
5.279
9.467 6.841
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
0.929
3.693
2.094
4.683
1.790
2.338
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Country/currency
2.3
...
-36.3
-45.5
206.3
22.34
3.44
3.38
3.23
3.66
-2.42
-0.36
-0.33
-0.30
-0.34
-9.77
-9.49
-8.78
-8.50
-8.48
25.98 14.48
...
...
6.08 1.50
4.58 1.52
8.40 2.14
...
...
-35.7
63.1
40.8
HWBK
PST
PXH
CNFR
EMIF
Volume % chg from Latest Session
(000) 65-day avg Close % chg
881
21,726
380
677
1,204
5204
4409
3508
2851
2656
17.84 -0.22
19.39 272.17
46.23 0.11
35.09 0.12
9.90 1.02
133
581
3,513
100
104
2386
2159
1886
1782
1771
20.70
21.88
21.67
5.70
32.82
US$vs,
YTDchg
Wed
in US$ per US$ (%)
0.20
0.60
0.51
2.70
0.37
52-Week
High
Low
24.96 17.79
24.98 2.56
47.81 33.68
35.25 29.04
11.76 9.70
22.36
23.04
22.30
8.20
35.00
15.64
20.50
17.50
5.50
27.14
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0564 17.7350 11.8
Brazil real
.3032 3.2978 1.3
Canada dollar
.7792 1.2834 –4.5
Chile peso
.001613 619.80 –7.5
Ecuador US dollar
1
1 unch
Mexico peso
.0520 19.2147 –7.3
Uruguay peso
.03478 28.7500 –2.0
Venezuela b. fuerte .099207 10.0800 0.8
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
.7667 1.3043 –6.1
China yuan
.1520 6.5784 –5.3
Hong Kong dollar
.1278 7.8232 0.9
India rupee
.01563 63.975 –5.9
Indonesia rupiah .0000736 13580 0.4
Japan yen
.008819 113.39 –3.1
Kazakhstan tenge .002978 335.82 0.6
Macau pataca
.1245 8.0316 1.5
Malaysia ringgit
.2455 4.0740 –9.2
New Zealand dollar
.7012 1.4261 –1.2
Pakistan rupee
.00901 110.945 6.3
Philippines peso
.0199 50.136 1.1
Singapore dollar
.7442 1.3438 –7.2
South Korea won .0009254 1080.56 –10.5
Sri Lanka rupee
.0065317 153.10 3.1
Taiwan dollar
.03334 29.991 –7.6
Thailand baht
.03056 32.720 –8.6
Vietnam dong
.00004403 22713 –0.3
Commodities
.04621 21.641 –15.7
.1595 6.2708 –11.3
1.1873 .8423 –11.4
.003793 263.61 –10.4
.009499 105.27 –6.8
.1189 8.4102 –2.7
.2823 3.5423 –15.4
.01705 58.665 –4.2
.1191 8.3964 –7.8
1.0134 .9868 –3.2
.2618 3.8203 8.4
.0360 27.8150 2.7
1.3375 .7477 –7.7
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6525 .3770 –0.05
.0560 17.8710 –1.4
.2861 3.4954 –9.2
3.3126 .3019 –1.2
2.5978 .3849 –0.01
.2725 3.670 0.8
.2666 3.7503 –0.01
.0785 12.7388 –7.0
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.83 –0.03–0.03 –6.57
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Wednesday
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
1.80
2.00
0.67
2.66
2.20
U.S.-dollar foreign-exchange rates in late New York trading
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.92%
Bankrate.com avg†:
4.55
11.64
6.96
5.95
9.30
Currencies
Forex Race
notes and bonds
-11.19
-11.14
-10.94
-10.93
-10.91
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
s
U.S. consumer rates
Symbol
4.17
47.93
47.64
25.71
103.16
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
-0.33
-0.41
-0.28
-0.34
-0.90
Ranked by change from 65-day average*
Velocity VIX Tail RiskETN BSWN
NETE
Net Element
VanEck Vectors Gaming ETF BJK
JHML
John Hancock Multi LC
FNTE
FinTech Acqn II
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
PANL
49.89 20.34
29.84 21.77
32.24 17.36
28.33 22.00
268.60 222.73
1.01
33.94
33.23
18.97
27.40
2.62
3.27
2.28
2.75
7.35
TCCO
PRAN
Company
-28.7
39.3
-15.0
-69.9
...
BVSN
Volume Movers
Volume % chg from Latest Session
(000) 65-day avg Close % chg
0.72
0.89
0.90
2.07
2.35
MNKD
SRNE
52-Week
Low
% chg
3.16
4.00
3.45
9.79
6.85
PIXY
PMTS
High
-36.39
-33.85
-23.42
-14.79
-12.82
CODX
3.40
4.14
51.90
18.88
5.30
MTEM
MU
* 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.
-1.11
-0.87
-0.52
-0.50
-0.35
PFNX
36.82
31.73
30.51
29.62
29.55
PYDS
Micron Technology
Bank of America
General Electric
Finl Select Sector SPDR
SPDR S&P 500
NYSE Arca
1.94
1.70
1.70
2.88
2.38
APDN
0.74
0.79
5.54
2.95
0.65
RVEN
Symbol
Nasdaq
Total volume*1,834,111,649 221,746,754
Adv. volume*1,011,500,167 103,359,526
Decl. volume* 792,099,337 116,953,212
Issues traded
3,070
1,326
Advances
1,469
655
Declines
1,457
638
Unchanged
144
33
New highs
120
80
New lows
46
25
Closing tick
8
21
Closing Arms†
0.79
1.22
Block trades*
6,629
1,383
Latest Session
Close Net chg % chg
CCCR
2.75
3.28
23.70
12.91
2.85
ELTK
Company
Total volume* 773,968,623 13,583,866
Adv. volume* 411,048,162 7,814,160
Decl. volume* 347,897,175 5,479,262
Issues traded
3,081
335
Advances
1,486
164
Declines
1,474
149
Unchanged
121
22
New highs
159
5
New lows
39
10
Closing tick
322
25
Closing Arms†
0.79
0.87
Block trades*
6,163
141
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
18,040.1 267.03
Percentage Gainers...
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Interest rate
Net chg
SPY
SPDR S&P 500
563.37
0.22
8.92
-0.31 -3.09
Net chg
3065.81
394.50
262.65
The Global Dow
DJ Global Index
DJ Global ex U.S.
J F MAM J J A S O N D
2017
Last
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
10-year Treasury
note yield
NYSE NYSE Amer.
Most-active issues in late trading
13.5
14.8
2690.16
0.0001 12785.82 11056.89
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
11.6
15.2
0.27
Philadelphia Stock Exchange
World
25.1
8783.74
-0.04
-2.89
-8.19
6960.96
6472.48
24.0
0.88 10628.74
-0.66
-4.86
728.98
6935.42
6447.93
24792.20 19732.40
92.83
27828.08 27676.19 27715.94 -11.77
716.62
711.69
1.92
714.70
Nasdaq Stock Market
Nasdaq Composite
6991.25
Nasdaq 100
6504.55
NYSE Composite
-0.11
24852.44 24697.11 24726.65 -28.10
Transportation Avg 10676.36 10578.85 10628.74
Volume, Advancers, Decliners
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Industrial Average
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.
603.88
3.27
187.09
58.09
2.637
1266.10
1.07
0.53
-0.055
5.40
0.54
616.58
532.01
0.58 195.14
58.95
0.92
3.93
-2.04
0.43 1346.00
166.50
42.53
2.56
1128.80
% Chg
7.52
YTD
% chg
6.46
-1.93 -2.82
8.13
10.67
-25.55 -29.19
11.94 10.10
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B8 | Thursday, December 21, 2017
COMMODITIES
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
3.1195
3.1770
3.1195
3.1715 0.0440
March'18 3.1465 3.2120
3.1390
3.1960 0.0445
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1261.30 1266.60
1261.30 1266.10
5.40
Feb'18
1264.80 1271.40
1264.40 1269.60
5.40
April
1269.70 1275.80
1269.40 1274.20
5.40
June
1274.70 1280.10
1274.70 1278.60
5.50
Aug
1280.60 1283.50
1280.60 1283.00
5.40
Dec
1289.70 1293.30
1288.80 1292.20
5.60
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1044.60 1044.60 s
1044.60 1037.95
6.00
March'18 1018.00 1028.90
1015.00 1024.60
6.00
June
1016.65 1022.15 s
1013.50 1017.80
5.20
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
920.60
7.40
April'18
919.00
928.40
915.00
925.20
7.40
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
16.095
16.175
16.095
16.188 0.122
March'18 16.170 16.320
16.150
16.275 0.122
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Feb
57.66
58.12
57.44
58.09
0.53
March
57.68
58.16
57.49
58.13
0.55
April
57.65
58.14
57.49
58.11
0.55
May
57.59
58.05
57.44
58.04
0.55
June
57.43
57.89
57.26
57.88
0.53
Dec
55.81
56.17
55.70
56.14
0.33
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.9425
1.9509
1.9343
1.9442 .0043
Jan
Feb
1.9415
1.9527
1.9360
1.9465 .0055
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.6992
1.7388
1.6973
1.7353 .0387
Feb
1.7129
1.7484
1.7115
1.7447 .0338
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.722
2.756
2.610
2.637 –.055
Feb
2.725
2.758
2.612
2.636 –.061
March
2.693
2.725
2.582
2.604 –.061
April
2.622
2.637
t
2.529
2.544 –.057
May
2.634
2.646
t
2.545
2.558 –.056
Oct
2.736
2.742
t
2.644
2.660 –.055
Open
interest
1,604
143,348
349.75
366.75
347.25
364.00
349.25
366.00
March
May
247.00
253.00
247.00
253.00
244.25
251.50
245.00
251.50
March
May
26.98
27.20
27.00
27.20
26.98
27.20
26.98
27.20
.05
.20
March
May
75.00
75.37
75.95
76.28
74.95
75.29
75.71
76.12
.68 169,088
.79 49,286
Jan
March
141.05
140.05
141.10
140.20
137.95
138.00
138.95
138.35
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
3,386
2,195
–1.85
–1.70
1,878
5,744
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
123-230 123-265
123-035 123-035
123-135
123-035
123-145
123-045
–7.5 3,253,948
–8.5
2
511,064
357,292
163,829
131,135
251,740
251,811
116-102 116-102
116-062 116-067
–2.5 23,139
Dec
March'18 116-020 116-040
115-295 115-305
–3.2 3,023,846
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-082 107-087
107-082 107-082
–.5 12,708
Dec
March'18 107-022 107-027
107-010 107-017
–.5 1,752,433
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.703
98.705
98.700
98.703
… 106,813
Dec
Jan'18
98.595
98.595
t 98.590
98.595
… 284,093
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
97.672
97.703
t 97.422
97.500 –.234 24,457
March
1 Month Libor (CME)-$3,000,000; pts of 100%
98.4550 98.4650
t 98.4550 98.4650 –.0050
2,379
Feb
Eurodollar (CME)-$1,000,000; pts of 100%
98.3250 98.3300
t 98.3150 98.3200 –.0050 203,792
Jan
March
98.2150 98.2150
98.2050 98.2100 –.0050 1,463,284
June
98.0600 98.0600
t 98.0450 98.0550 –.0050 1,301,518
Dec
97.8650 97.8650
97.8450 97.8500 –.0150 1,499,609
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
67,417
117,107
59,945
122,208
93,557
351,461
276,730
158,738
126,381
82,243
Currency Futures
Jan
March
.8864
.8910
.8877
.8910
.8836
.8859
.8837 –.0037
2,158
.8863 –.0039 219,365
Jan
March
.7777
.7777
.7804
.7814
.7777
.7777
.7801
.7808
.0029
1,242
.0029 109,917
Jan
March
1.3411
1.3439
1.3438
1.3470
1.3405
1.3421
1.3414
1.3441
.0005
2,387
.0006 179,684
March
June
1.0232
1.0274
1.0251
1.0323
1.0193
1.0269
1.0210 –.0015
1.0285 –.0014
Jan
Feb
March
June
Sept
.7663
.7658
.7660
.7663
.7652
.7679
.7678
.7679
.7673
.7655
.7658
.7658
.7650
.7663
.7652
3,794
6,078
Jan
March
.05174
.05130
.05190
.05138
.05172
.05112
.05180 –.00008
50
.05122 –.00008 181,857
Jan
March
1.1874
1.1916
1.1931
1.1976
1.1862
1.1905
1.1910
1.1954
Canadian Dollar (CME)-CAD 100,000; $ per CAD
1.75 857,745
1.75 233,301
–1.50
–1.25
315.70
319.70
.50 53,050
.60 167,050
Jan
March
33.24
33.35
33.48
33.64
32.89
33.05
32.96
33.13
–.26 60,833
–.26 190,983
Jan
March
1171.00
1200.50
1186.00
1214.50
1171.00
1200.50
1184.00
1212.50
March
May
418.75
432.25
424.50
437.00
416.25
428.75
423.50
436.25
4.00 310,685
3.50 87,699
March
May
420.00
433.00
424.00
436.75
416.00
429.00
422.50
435.50
2.50 201,175
2.50 51,670
March
May
617.25
625.75
621.50
629.00
615.00
623.00
617.75
626.00
–.50
–.25
12.50
11.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
145.200
143.200
145.200
143.200
140.975
139.075
141.775 –3.425
139.750 –3.550
Dec
Feb'18
120.000
120.450
120.700
120.800
118.200
118.150
119.400 –.600
4,846
118.950 –1.500 125,434
68.375
72.950
1.475
1.275
88,892
58,864
431.20
431.70
428.50
Jan
March
424.50
426.90
422.80
Milk (CME)-200,000 lbs., cents per lb.
Dec
15.43
15.51
15.42
Feb'18
13.69
13.70
t
13.50
Cocoa (ICE-US)-10 metric tons; $ per ton.
March
1,910
1,933
1,895
May
1,904
1,925
1,890
430.60
425.90
–.60
–.20
2,696
3,022
…
–.08
1,931
1,925
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7668
.7667
.7666
.7665
.7665
Euro (CME)-€125,000; $ per €
78,775
87
.0003
1,357
.0002
586
.0003 102,932
.0003
307
.0003
64
Mexican Peso (CME)-MXN 500,000; $ per MXN
.0031
8,060
.0031 454,753
Index Futures
Freddie Mac (FHLMC) 2.990 2.680 3.130
2.273 1.736 2.377
4.3 7-12 year
2.305 1.744 2.463
3.620 3.340 3.830
407.97
1909.40
1897.30
1904.40
6504.0
6524.3
March
1542.60
6529.0 s
6546.8 s
6463.3
6483.5
6489.0
6508.3
1548.80
1537.80
1540.00
1488.30
1488.90
1484.30
93.04
92.70
93.12
92.78
–11.8 275,308
–11.3
559
1.30
1485.40
92.75
92.51
23,371
–1.60
92.89
92.56
79
–.14
–.14
39,568
1,007
6.1
Triple-B-rated
High Yield Constrained 5.819 5.373 6.229
8.8 Triple-C-rated
418.60
6.4
2854.76
6.7
396.16
High Yield Bonds Merrill Lynch
7.2
5.7
High Yield 100
12-22 year
2.597 2.213 2.872
22-plus year
2.946 2.716 3.449
Global Government J.P. Morgan†
10.684 9.584 11.511
542.88
1.1
Global Government 1.470 1.300 1.560
5.633 4.948 5.890
756.34
0.4
Canada
2.050 1.570 2.190
378.21
7.4
Global High Yield Constrained 5.273 4.934 5.880
371.88
0.8
EMU§
1.087 0.933 1.363
305.98
6.6
Europe High Yield Constrained 2.453 1.897 3.306
713.25
0.9
France
0.820 0.690 1.210
Germany
0.490 0.210 0.620
Japan
0.400 0.340 0.460
Netherlands
0.600 0.360 0.760
U.K.
1.580 1.340 1.790
508.23
U.S Agency Bloomberg Barclays
1633.55
1.8
U.S Agency
2.220 1.690 2.220
288.54
1460.89
1.0
10-20 years
2.080 1.490 2.080
561.40
3345.81
7.0
20-plus years
3.030 2.730 3.420
922.36
3.000 2.610 3.050
805.29
4.7 Yankee
-1.2
0.1
-0.9
1.0
9.0 Emerging Markets ** 5.570 5.279 6.123
** EMBI Global Index
Imports, 000s barrels per day
1,245
3,626
...
4
4
4
43
154
14
140
41
265
41
129
10
119
31
282
1,910 2,024
1,909
5-year
avg
Expected Previous
Current change
week
no
Year
ago
4-week
avg
Year
ago
5-year
avg
416
225
37
0
37
188
7,834
487
9
0
9
478
...
...
...
...
...
...
7,363 8,471
483 447
32
8
0
0
32
8
451 439
7,432
496
15
0
15
482
7,542
500
32
0
32
467
0.050
3
...
...
...
...
2.050
...
...
39
135
17
117
39
234
315
380
102
278
265
894
...
...
...
...
...
...
69
149
33
116
259
1,087
186
211
21
190
144
610
156
199
61
138
217
853
44
149
51
99
115
775
1,875
2,762
...
3,991 4,794
2,824
5,031
Natural gas storage
5-year
avg
motor gasoline
Kerosene-type
9,426
...
9,091
9,269
9,034
9,194
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
2,108
3,926
562
1,324
3,765
...
...
...
...
...
1,598
4,380
263
1,388
3,752
1,673
4,549
344
1,453
4,122
1,792
3,981
467
1,276
3,749
1,478
3,681
208
...
...
3250
2250
t
1250
Five-year average
for each week
250
D J F M A M J
2017
J A S O N
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Closing Chg YTD
Symbol Price (%) (%)
43.42
59.69
106.66
109.99
135.60
149.31
124.53
187.30
153.38
126.97
158.91
208.39
89.02
216.33
153.64
113.76
38.27
112.97
83.92
105.09
124.14
120.90
101.68
157.53
47.62
22.97
36.55
120.14
33.72
64.54
63.81
247.07
345.16
–0.53
0.13
0.52
–0.22
–0.12
–0.04
0.03
0.25
0.20
0.16
–0.01
0.04
0.02
0.05
–0.14
0.04
–0.08
–0.34
0.01
–0.29
–1.11
0.02
0.02
–0.11
–0.31
...
0.11
0.27
–0.06
–0.02
–0.03
–0.13
0.16
25.5
22.2
20.6
1.7
29.3
20.0
11.2
21.7
13.7
6.8
19.5
16.5
10.7
18.7
26.2
12.2
2.8
–0.2
–0.6
0.3
4.2
24.1
0.3
33.0
14.5
–1.7
0.3
9.6
21.8
19.1
19.8
25.1
14.4
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
267.03
93.89
64.71
53.00
22.50
166.96
133.37
160.94
102.43
44.77
44.83
58.48
70.03
54.43
141.64
155.25
86.17
83.64
87.13
123.30
154.85
111.68
82.85
246.56
79.13
79.43
148.12
81.28
55.03
56.56
137.93
73.76
106.76
64.60
59.74
31.76
1.220
2.560
1.946 s
2.642 s
l
1.936
1.780
1.878
9.0
7.9
l
2.586
2.554
2.857
14.7
11.8
29.7
France 2 -0.517 s
10 0.739 s
l
-0.523
-0.592
-238.0
-188.7
0.750
0.000
l
0.703
0.702
-176.5
-183.7
Germany 2 -0.669 s
10 0.406 s
l
-0.690
-0.716
0.500
l
0.380
Italy 2 -0.220 s
10 1.937 s
l
l
0.100
Japan 2 -0.145 s
10 0.055 s
l
0.100
2.750
l
0.042
0.036
Spain 2 -0.377 t
10 1.492 s
l
-0.376
-0.362
-0.252
1.450
l
1.470
1.517
1.345
0.473 s
1.254 s
l
0.465
0.497
0.076
-138.4
-139.2
-114.5
l
1.211
1.296
1.265
-124.2
-125.8
-129.4
1.750
U.K. 2
4.250
10
-0.666 -237.4
0.723
-175.7
65.7
-254.7
-200.4
0.364
-0.784 -252.6
0.267 -208.9
-208.8
-229.2
-0.222
-0.274
-0.136
-207.7
-207.8
-135.7
1.913
1.816
1.843
-55.9
-55.5
-71.7
-0.149
-0.195
-0.185
-200.2
-200.6
-140.5
-242.6
-249.0
0.070 -244.0
-223.3
-100.4
-223.3
-147.2
-99.8
-121.5
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
4250
t
1.751
2.371
Investment-grade spreads that tightened the most…
Billions of cubic feet; weekly totals
Natural gas,
lower 48 states
0.000
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.857
2.468
10
9,267
Year ago
l
Australia 2
9,552
Month ago
U.S. 2 1.857 s
10 2.495 s
2.750
9,623 10,225
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
2.750
...
Finished
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
1.750
2.250
10,315
20,299 19,695
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
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
4-week
avg
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
1,181
21,409
–0.09 –14.8
–0.19 21.0
9.9
–0.18
1.41 –6.6
–0.18 20.0
0.01 16.3
–0.32 20.9
0.33 21.1
0.8
–0.10
... –0.3
–0.08 –0.4
–0.18 21.9
0.20 30.2
–0.03 23.0
–0.05 19.6
0.19 14.7
0.22 11.9
–0.02 19.2
0.6
–0.23
–0.17 10.8
18.0
–0.41
–0.24 17.1
9.7
0.25
2.8
–0.26
0.7
0.08
5.0
–0.16
–0.08 –0.2
–0.07 21.1
–0.17 20.7
... 27.2
0.13 30.8
Fannie mae (FNMA) 2.980 2.670 3.120
2.3
4.0 Muni Master
1899.90
March
June
2.960 2.660 3.120
2.2
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
445
222
25
0
25
198
10.74
98.53
56.82
70.33
27.89
100.77
83.37
75.32
109.08
104.61
122.02
65.36
55.28
62.08
268.99
189.61
76.95
61.13
108.76
98.10
72.24
52.94
12.15
120.49
87.19
115.74
106.18
71.68
69.68
63.40
45.81
1789.38
Ginnie Mae (GNMA) 2.910 2.630 3.090
362.35
March
20,471
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
1161.74
2.930 2.530 2.990
1.5
518.58
416.64
...
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
3.320 3.030 3.500
Mortgage-Backed
2.770 2.470 2.870
–2.50 2,969,224
–2.25 17,988
21,111
ETF
1947.80
2.0
4.150 3.990 4.680
2453.95
1,247 1,329
ETF
U.S. Corporate
3.5 Intermediate
1980.98
9.8 Long term
2681.50
2683.50
Source: SIX Financial Information
485
229
26
0
26
202
Wednesday, December 20, 2017
Closing Chg YTD
Symbol Price (%) (%)
2.770 2.380 2.790
U.S. Aggregate
3.9 Double-A-rated
2679.00
2680.75
92,662
Yield (%)
Latest Low High
Index
565.61
2695.50 s
2697.00 s
March
June
443
227
26
0
26
200
Current
YTD total
return (%)
3860.94
2684.75
2686.75
Weekly Demand, 000s barrels per day
Total petroleum
product
5.5
2775.48
Total
return
close
Mortgage-Backed Bloomberg Barclays
U.S. Corporate Indexes Bloomberg Barclays
March
June
U.S. Dollar Index (ICE-US)-$1,000 x index
4-week
avg
Expected Previous
change
week
Yield (%)
Latest Low High
Index
2.9
1934.04
716.82
March
-3,200
...
1,100
...
...
...
...
YTD total
return (%)
Broad Market Bloomberg Barclays
43,019
541
Mini Russell 1000 (ICE-US)-$100 x index
436,491
227,783
24,988
53
24,935
202,796
Net crude, petroleum
products, incl. SPR
1,896,189
Total
return
close
–2.50
–2.40
3.10
34.7000
0.2300
n.a.
0.3221
0.2650
0.3000
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
2681.60
2683.40
Mini Russell 2000 (ICE-US)-$100 x index
Year
ago
41
128
9
119
32
280
16.2400
19.4880
16.2100
20.2630
£12.0900
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
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
2679.50
2681.80
Mini Nasdaq 100 (CME)-$20 x index
...
...
-500
...
...
...
...
4.85
113
3.2050
98.8
482.4
233
88
228
2.7250
384.00
25.00
8.0225
183.31
167.37
0.8668
2.1950
140.00
143.50
64.75
2112
1.2100
1.4075
1.6750
15.15
0.56
61.06
n.a.
0.8382
n.a.
167.75
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 12/19
Source: WSJ Market Data Group
2695.20 s
2694.80 s
–36 144,578
–36
142
Mini S&P Midcap 400 (CME)-$100 x index
1,232,895
39,834
128,845
10,187
118,658
30,815
275,462
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
311.20
9.2050
7.4025
4.2800
4.0550
5.2050
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
0.6200
0.7496
*85.95
65.000
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
1267.80
1362.89
1264.55
1403.65
*1263.10
*1260.35
1317.26
1329.93
1329.93
1535.14
1244.52
1329.93
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
2691.00
...
n-
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
LBMA Platinum Price PM
*914.0
Platinum,Engelhard industrial
923.0
Platinum,Engelhard fabricated
1023.0
Palladium,Engelhard industrial
1036.0
Palladium,Engelhard fabricated
1136.0
Aluminum, LME, $ per metric ton
*2061.0
Copper,Comex spot
3.1715
Iron Ore, 62% Fe CFR China-s
73.2
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
644
Silver, troy oz.
March
June
Inventories, 000s barrels
Natural gas (bcf)
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
Fibers and Textiles
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
24739
24756
Inventories, imports and demand for the week ended December 15. Current figures are in thousands of barrels
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
import Natural-gas import and demand data are available monthly only.
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
Wednesday
16.1850
12170
Other metals
Metals
24706
24727
Watching the Gauges: U.S. Supply and Demand
Expected Previous
Current change
week
0.9588
1.0017
2.700
2.650
3.440
2.310
2.650
2.190
2.500
59.850
12.100
Gold, per troy oz
24880 s
24891 s
Macro & Market Economics
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
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
24772
24851
Mini S&P 500 (CME)-$50 x index
19 140,210
20 49,805
Wednesday
Energy
March
June
S&P 500 Index (CME)-$250 x index
3,814
3,851
Wednesday, December 20, 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.
2611.44
Mini DJ Industrial Average (CBT)-$5 x index
13,971
22,471
66.825
71.575
15.44
13.56
Swiss Franc (CME)-CHF 125,000; $ per CHF
41,457
12,750
Jan
March
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
British Pound (CME)-£62,500; $ per £
4,870
1,433
314.50
318.60
68.675
73.225
.16 415,181
.17 164,829
March
June
317.40
321.30
67.400
72.000
14.57
14.40
370
164,251
315.30
319.00
Feb
April
14.33
14.16
–30.0 755,764
–31.0
5
Jan
March
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
14.60
14.43
150-180
149-170
–2.00 147,620
–2.25 279,786
Cattle-Live (CME)-40,000 lbs.; cents per lb.
14.40
14.23
150-140
149-140
954.00
964.50
Wheat (MPLS)-5,000 bu.; cents per bu.
March
May
151-210 151-280
149-210 149-210
952.75
963.50
Wheat (KC)-5,000 bu.; cents per bu.
1.40 128,170
1.45 45,743
March
June
960.00
970.75
Wheat (CBT)-5,000 bu.; cents per bu.
123.15
125.45
3
49,883
955.75
966.25
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
122.05
124.35
Cotton (ICE-US)-50,000 lbs.; cents per lb.
24
33,607
1,385
Jan
March
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
124.05
126.20
Cash Prices
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
347.50
364.00
Soybean Meal (CBT)-100 tons; $ per ton.
122.50
124.55
Japanese Yen (CME)-¥12,500,000; $ per 100¥
March
July
Soybeans (CBT)-5,000 bu.; cents per bu.
March
May
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
471
332,929
33,157
36,665
11,844
25,828
Open
interest
Chg
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Agriculture Futures
Oats (CBT)-5,000 bu.; cents per bu.
Settle
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Metal & Petroleum Futures
Corn (CBT)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
ly
.
Futures Contracts
WSJ.com/commodities
–0.05
–0.09
–0.03
–0.79
1.67
–0.11
0.26
0.16
0.05
–0.07
0.13
–0.34
–0.20
–0.06
–0.20
–0.20
–0.08
–0.17
–0.10
–0.05
–0.07
0.05
–1.16
–0.08
–0.05
0.01
0.15
–0.20
–0.04
–0.02
–0.01
–0.07
0.04
–0.81
0.91
–0.16
19.5
9.7
33.8
9.1
7.6
37.4
10.2
20.9
20.3
22.5
25.3
22.0
18.0
23.2
27.1
22.5
13.7
0.7
1.7
20.4
17.6
14.9
0.4
20.1
–0.4
0.1
14.9
0.6
1.4
23.3
19.6
20.9
14.8
12.5
20.6
13.2
Spread*, in basis points
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
JPMorgan Chase
Pitney Bowes
Applied Materials
Teva Pharmaceutical Finance
JPM
PBI
AMAT
TEVA
7.900 April 30, ’49
4.625 March 15, ’24
2.625
Oct. 1, ’20
6.150
Feb. 1, ’36
45 –19
375
–17
19 –11
328 –10
66
411
27
325
106.14
11.38
53.29
…
–0.35
1.43
0.62
…
AT&T
Bank of America
Berkshire Hathaway Energy
CBS
T
BAC
BRKHEC
CBS
2.450
2.625
6.125
3.700
40
28
73
143
–8
–7
–7
–6
53
37
91
153
38.55
29.48
...
60.08
1.31
0.10
...
1.04
Maturity
June 30, ’20
Oct. 19, ’20
April 1, ’36
June 1, ’28
Current
Last week
…And spreads that widened the most
Barclays
Goldman Sachs
Apple
Citibank NA
BACR
GS
AAPL
C
5.200 May 12, ’26
5.375 March 15, ’20
2.000 Nov. 13, ’20
2.125 Oct. 20, ’20
180
49
25
47
15
179
54
n.a.
42
...
255.18
174.35
…
...
–0.51
–0.11
…
JPMorgan Chase
Pfizer
U.S. Bancorp*
Cigna
JPM
PFE
USB
CI
5.150
2.200
4.125
4.000
158
15
26
60
8
8
7
6
162
n.a.
24
62
106.14
36.46
54.26
206.03
–0.35
–1.30
–0.55
–0.59
May 1, ’49
Dec. 15, ’21
May 24, ’21
Feb. 15, ’22
10
9
8
High-yield issues with the biggest price increases…
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
Fresh Market
Frontier Communications
Valeant Pharmaceuticals International
Westmoreland Coal
TFM
FTR
VRXCN
WLB
9.750
9.000
6.125
8.750
May 1, ’23
Aug. 15, ’31
April 15, ’25
Jan. 1, ’22
63.813
66.750
91.250
45.250
Abe Investment Holdings
California Resources
Noble Holding International
Tenet Healthcare
ABEGET 10.500
CRC
8.000
NE
4.625
THC
6.750
Oct. 16, ’20
Dec. 15, ’22
March 1, ’21
June 15, ’23
97.531
78.500
93.250
96.125
1.50
1.25
1.13
4.19
0.78
0.75
0.75
0.75
Last week
Stock Performance
Close ($)
% chg
n.a.
68.404
90.250
43.020
...
7.34
...
1.11
...
–1.34
...
–3.48
95.500
77.720
n.a.
94.750
...
16.94
…
14.62
...
4.25
…
–2.73
114.187
64.500
75.000
103.017
...
1.77
...
42.92
...
5.99
...
0.05
73.403
n.a.
102.831
53.250
7.34
...
…
...
–1.34
...
…
...
…And with the biggest price decreases
Teck Resources
Denbury Resources
PetSmart
Aramark Services
TCKBCN
DNR
PETM
ARMK
6.250
4.625
5.875
4.750
July 15, ’41
July 15, ’23
June 1, ’25
June 1, ’26
112.750
63.000
77.000
101.625
Frontier Communications
CBS Radio
Charter Communications Operating
Intelsat Luxembourg S.A.
FTR
CBSR
CHTR
INTEL
6.250 Sept. 15, ’21
7.250
Nov. 1, ’24
5.375
May 1, ’47
8.125
June 1, ’23
71.402
105.220
101.122
52.000
–2.50
–1.72
–1.50
–1.13
–1.10
–1.03
–1.02
–0.97
*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.
Thursday, December 21, 2017 | B9
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.
Stock
s
s
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
A B C
s ABB
ABB 26.56
AECOM
ACM 37.07
AES
AES 10.58
Aflac
AFL 87.36
AGNC Invt
AGNC 20.13
Ansys
ANSS 147.35
ASML
ASML 175.17
AT&T
T
38.55
s AbbottLabs ABT 57.02
AbbVie
ABBV 97.41
Abiomed
ABMD 193.69
Accenture
ACN 151.75
ActivisionBliz ATVI 64.38
AcuityBrands AYI 170.77
Adient
ADNT 80.91
AdobeSystems ADBE 174.25
AdvanceAuto AAP 98.59
AdvMicroDevices AMD 10.98
AdvSemiEngg ASX
6.39
Aegon
AEG
6.26
AerCap
AER 52.69
Aetna
AET 179.55
s AffiliatedMgrs AMG 202.59
AgilentTechs A
67.40
AgnicoEagle AEM 44.33
Agrium
AGU 110.24
AirProducts APD 162.83
AkamaiTech AKAM 66.63
AlaskaAir
ALK 73.77
Albemarle
ALB 131.33
Alcoa
AA
49.26
AlexandriaRlEst ARE 128.63
AlexionPharm ALXN 118.35
Alibaba
BABA 172.64
AlignTech
ALGN 233.65
Alkermes
ALKS 52.12
Alleghany
Y
583.75
Allegion
ALLE 81.00
Allergan
AGN 165.71
AllianceData ADS 247.15
AlliantEnergy LNT 42.51
AllisonTransm ALSN 43.10
Allstate
ALL 104.42
AllyFinancial ALLY 29.03
AlnylamPharm ALNY 121.97
Alphabet A GOOGL 1073.56
Alphabet C GOOG 1064.95
Altaba
AABA 70.90
AlticeUSA
ATUS 20.34
Altria
MO 72.60
AlumofChina ACH 17.47
Amazon.com AMZN 1177.62
Ambev
ABEV 6.24
Amdocs
DOX 65.75
Amerco
UHAL 383.31
Ameren
AEE 58.69
AmericaMovil AMX 17.24
AmericaMovil A AMOV 17.26
AmerAirlines AAL 51.92
AEP
AEP 74.50
AmerExpress AXP 98.51
AmericanFin AFG 106.19
AmerHomes4Rent AMH 21.72
AIG
AIG 60.00
AmerTowerREIT AMT 140.19
AmerWaterWorks AWK 89.34
s Ameriprise AMP 171.10
AmerisourceBrgn ABC 93.74
Ametek
AME 72.48
Amgen
AMGN 177.11
Amphenol
APH 88.64
AnadarkoPetrol APC 50.73
AnalogDevices ADI 88.65
Andeavor
ANDV 110.93
AndeavorLog ANDX 46.17
AB InBev
BUD 111.63
AnnalyCap
NLY 11.93
Anthem
ANTM 227.92
Aon
AON 136.39
Apache
APA 41.26
ApartmtInv AIV 43.26
ApolloGlbMgmt APO 32.61
Apple
AAPL 174.35
ApplMaterials AMAT 53.29
Aptiv
APTV 85.87
AquaAmerica WTR 37.76
Aramark
ARMK 42.92
s ArcelorMittal MT
32.16
ArchCapital ACGL 89.55
ArcherDaniels ADM 39.87
Arconic
ARNC 26.13
AristaNetworks ANET 234.15
ArrowElec
ARW 80.55
AstraZeneca AZN 33.01
Athene
ATH 50.76
Atlassian
TEAM 46.69
AtmosEnergy ATO 86.55
Autodesk
ADSK 105.03
Autohome
ATHM 64.44
Autoliv
ALV 127.30
ADP
ADP 117.86
AutoZone
AZO 700.90
Avalonbay
AVB 177.62
Avangrid
AGR 51.13
s AveryDennison AVY 116.68
-0.03
-0.13
-0.07
-0.62
0.11
-0.28
-1.86
0.50
0.22
-0.51
-0.20
-0.47
-0.52
-1.09
0.52
-0.72
-1.14
0.03
-0.01
-0.05
-0.05
0.75
0.39
-0.35
0.50
0.84
0.31
-0.19
0.58
-0.69
2.74
-2.97
2.63
1.36
-1.40
0.32
6.25
0.93
-3.86
2.30
-0.26
0.44
0.04
0.18
-0.88
-6.22
-5.73
0.69
0.38
-0.64
0.28
-9.76
0.04
-0.30
1.93
-0.80
-0.09
0.10
0.48
-0.01
-0.64
0.64
-0.30
0.22
-1.67
0.34
-0.23
-0.05
0.42
0.24
-0.16
1.34
0.70
0.55
-0.47
-0.15
0.08
-0.07
-0.48
1.01
0.02
0.11
-0.19
0.33
0.25
0.17
0.02
0.27
-0.97
-0.26
0.50
-1.85
0.11
-0.14
0.27
-0.18
-0.64
-0.36
1.72
0.15
-0.48
-0.11
-0.10
0.31
-0.42
s
s
s
s
s
s
s
s
s
AxaltaCoating AXTA 31.95 0.56
BB&T
BBT 49.84 -0.19
BCE
BCE 47.11 -0.52
BHPBilliton BHP 44.14 0.85
BHPBilliton BBL 38.61 0.66
BOK Fin
BOKF 92.45 0.08
BP
BP
40.95 0.31
BRF
BRFS 10.81 0.02
BT Group
BT
18.07 -0.21
BWX Tech
BWXT 61.02 -0.02
Baidu
BIDU 233.37 -2.25
BakerHughes BHGE 32.74 0.91
Ball
BLL 37.99 -0.27
BancoBilbaoViz BBVA 8.59
...
BancodeChile BCH 94.59 -0.60
BancoMacro BMA 117.19 -0.25
BcoSantChile BSAC 31.87 -0.19
BancoSantander SAN
6.65 -0.02
BanColombia CIB
39.71 -0.16
BankofAmerica BAC 29.48 0.03
BankofMontreal BMO 78.81 0.26
BankNY Mellon BK
53.95 -0.25
BkNovaScotia BNS 64.06 0.08
BankofOzarks OZRK 48.40 0.10
Barclays
BCS 10.84 -0.01
Bard CR
BCR 332.56 -1.27
BarrickGold ABX 14.42 0.17
BaxterIntl
BAX 65.29 -0.49
BectonDicknsn BDX 218.99 -2.34
Berkley
WRB 70.75 0.65
BerkHathwy A BRK.A 296500-492.00
BerkHathwy B BRK.B 197.79 -0.12
BerryGlobal BERY 59.18 -0.25
BestBuy
BBY 66.73 0.93
Bio-RadLab A BIO 245.29 -1.87
Biogen
BIIB 333.47 6.45
BioMarinPharm BMRN 91.11 0.26
Bioverativ
BIVV 53.71 0.07
BlackKnight BKI
44.00 -0.25
BlackBerry
BB 12.17 1.30
BlackRock
BLK 514.55 -1.27
Blackstone
BX
31.99 0.29
BlueBuffaloPet BUFF 31.71 0.21
bluebirdbio BLUE 185.25 3.15
Boeing
BA 297.90 0.65
BorgWarner BWA 53.06 0.86
BostonProps BXP 127.85 -0.99
BostonSci
BSX 25.37 -0.12
Braskem
BAK 26.40 -0.20
BrightHorizons BFAM 94.69 -0.02
BrighthouseFin BHF 58.14 -0.20
Bristol-Myers BMY 61.20 -0.36
BritishAmTob BTI
65.96 -0.62
Broadcom
AVGO 265.64 1.94
BroadridgeFinl BR
91.16
...
BrookfieldMgt BAM 43.16 -0.25
BrookfieldInfr BIP
44.10 0.15
Brown&Brown BRO 51.39 -0.11
Brown-Forman B BF.B 67.57 -0.13
Brown-Forman A BF.A 66.74 -0.14
BuckeyePtrs BPL 47.69 -0.39
Bunge
BG
67.25 0.34
BurlingtonStrs BURL 117.48 -0.46
CA
CA
33.55 -0.10
CBD Pao
CBD 21.86 0.19
CBRE Group CBG 43.27 -0.23
CBS B
CBS 60.08 0.62
CBS A
CBS.A 60.48 0.25
CDK Global CDK 71.48 0.02
CDW
CDW 70.40 0.38
CF Industries CF
40.88 -0.32
CGI Group
GIB
54.31 0.94
CH Robinson CHRW 86.75 0.12
CIT Group
CIT
49.34 -0.24
CME Group CME 149.44 -0.72
CMS Energy CMS 47.16 -0.56
CNA Fin
CNA 52.49 -0.10
CNOOC
CEO 139.45 0.04
CRH
CRH 34.76 0.21
CSX
CSX 55.41 0.56
CVS Health CVS 73.56 1.25
CabotOil
COG 26.97 0.15
CadenceDesign CDNS 43.21 -0.55
CaesarsEnt CZR 12.70
...
CalAtlantic
CAA 55.83 0.63
CamdenProperty CPT 90.32 -1.21
CampbellSoup CPB 48.33 -0.45
CIBC
CM
95.19 0.68
CanNtlRlwy CNI
81.40 0.09
CanNaturalRes CNQ 34.23 0.43
CanPacRlwy CP 180.34 1.09
Canon
CAJ 38.33 -0.11
CapitalOne COF 98.59 -0.15
CardinalHealth CAH 63.46 0.45
Carlisle
CSL 113.36 0.51
Carlyle
CG
22.10 0.60
CarMax
KMX 68.47 0.62
Carnival
CCL 67.70 -0.43
Carnival
CUK 67.18 -0.53
Caterpillar
CAT 152.52 1.61
Cavium
CAVM 85.65 -0.17
CboeGlobalMkts CBOE 124.23 -0.42
Celanese A CE 107.72 -0.26
Celgene
CELG 108.27 1.21
Cemex
CX
7.52 0.12
CenovusEnergy CVE
8.64 0.11
Centene
CNC 102.95 2.01
CenterPointEner CNP 28.02 0.01
Net
Sym Close Chg
Stock
s
s
t
s
s
CentraisElBras EBR
5.16 -0.09
CenturyLink CTL 17.15 -0.25
Cerner
CERN 68.52 -0.11
CharterComms CHTR 316.38 -0.59
CheckPoint CHKP 104.37 -0.57
Chemours
CC
49.42 -0.33
CheniereEnergy LNG 49.36 0.08
CheniereEnerPtrs CQP 27.56 -0.47
CheniereEnHldgs CQH 26.91 -0.09
Chevron
CVX 120.89 1.05
ChinaEastrnAir CEA 34.68 1.75
ChinaLifeIns LFC 15.49 -0.15
ChinaLodging HTHT 135.05 0.84
ChinaMobile CHL 49.47 0.22
ChinaPetrol SNP 71.58 0.34
ChinaSoAirlines ZNH 51.79 2.81
ChinaTelecom CHA 47.68 0.08
ChinaUnicom CHU 13.36 -0.11
Chipotle
CMG 298.67 -14.50
Chubb
CB 145.97 -1.65
ChunghwaTel CHT 35.11 0.18
Church&Dwight CHD 49.48 0.26
Cigna
CI
206.03 -1.23
CimarexEnergy XEC 114.88 1.83
CincinnatiFin CINF 73.45 -0.10
Cintas
CTAS 159.09 0.10
CiscoSystems CSCO 38.74 0.44
Citigroup
C
74.66 -0.04
CitizensFin CFG 41.93 -0.15
CitrixSystems CTXS 88.14 0.28
Clorox
CLX 148.39 0.34
Coca-Cola
KO
46.08 -0.05
Coca-Cola Euro CCE 39.47 0.10
Coca-Cola Femsa KOF 69.07 -0.65
Cognex
CGNX 62.10 -0.36
CognizantTech CTSH 72.71 0.78
Coherent
COHR 296.06 -0.53
ColgatePalm CL
74.52 -0.33
ColonyNorthStar CLNS 11.63 -0.20
Comcast A CMCSA 39.38 0.24
Comerica
CMA 86.56 0.02
CommerceBcshrs CBSH 56.19 -0.29
CommScope COMM 38.22 0.39
SABESP
SBS 10.29 0.16
ConagraBrands CAG 38.14 0.16
ConchoRscs CXO 146.81 6.50
ConocoPhillips COP 54.25 1.57
ConEd
ED
84.91 -0.65
ConstBrands A STZ 223.51 0.28
ContinentalRscs CLR 49.61 1.26
Cooper
COO 224.61 0.73
Copart
CPRT 43.80 -0.24
Corning
GLW 32.42 0.16
CoStar
CSGP 296.92 -1.94
Costco
COST 187.51 -0.82
Coty
COTY 19.45 0.07
Credicorp
BAP 204.91 0.28
CreditAcceptance CACC 329.67 -5.20
CreditSuisse CS
17.61 -0.17
CrownCastle CCI 107.89 -0.66
CrownHoldings CCK 56.58 0.05
Ctrip.com
CTRP 44.40 0.08
Cullen/Frost CFR 95.96 -0.05
Cummins
CMI 175.15 1.15
D E F
s
s
s
s
s
DISH Network DISH 48.70
DTE Energy DTE 108.25
DXC Tech
DXC 95.38
Danaher
DHR 94.62
Darden
DRI 95.67
DaVita
DVA 71.75
Deere
DE 154.37
DellTechs
DVMT 83.35
DeltaAir
DAL 56.22
DentsplySirona XRAY 66.15
DeutscheBank DB
19.71
DevonEnergy DVN 39.84
Diageo
DEO 142.49
DiamondbkEner FANG 117.24
DigitalRealty DLR 110.42
DiscoverFinSvcs DFS 75.74
DiscovComm C DISCK 21.12
DiscovComm B DISCB 24.45
DiscovComm A DISCA 22.37
Disney
DIS 109.69
DolbyLab
DLB 62.57
DollarGeneral DG
91.73
DollarTree
DLTR 108.92
DominionEner D
80.59
Domino's
DPZ 183.62
Donaldson
DCI
48.85
DouglasEmmett DEI
40.42
Dover
DOV 99.51
DowDuPont DWDP 71.27
DrPepperSnap DPS 95.98
DrReddy'sLab RDY 36.75
DukeEnergy DUK 84.49
DukeRealty DRE 27.02
ENI
E
33.04
EOG Rscs
EOG 103.54
EQT
EQT 54.22
E*TRADE
ETFC 49.54
EXACT Sci
EXAS 53.73
EastWestBncp EWBC 60.96
EastmanChem EMN 93.03
Eaton
ETN 77.15
New Highs and Lows | WSJ.com/newhighs
no
Stock
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.
Wednesday, December 20, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Highs
ABB
ABB
AG Mortgage PfdA MITTpA
AbbottLabs
ABT
Acushnet
GOLF
AffiliatedMgrs AMG
AirLease
AL
AlaskaCommSys ALSK
AmerEagle
AEO
AmericanNatlIns ANAT
Ameriprise
AMP
AmplifySnack BETR
ApolloMedical AMEH
ArcelorMittal MT
ArchCoal
ARCH
AssuredGuarNts AGOpF
AtHomeGroup HOME
AveryDennison AVY
AxoGen
AXGN
BBVABancoFr BFR
BMC Stock
BMCH
BRT Apartments BRT
BankofAmWtA BAC.WS.A
BankofAmWtB BAC.WS.B
BankofAmerica BAC
BlackBerry
BB
Boeing
BA
BoiseCascade BCC
BoulevardAcqnIi BLVD
BrightHorizons BFAM
BroadridgeFinl BR
BurlingtonStrs BURL
CNH Indl
CNHI
CONSOL Energy CEIX
CVR Energy
CVI
CVR Refining CVRR
CadenceBancorp CADE
CalavoGrowers CVGW
CanPacRlwy
CP
CapSouthwstNts CSWCL
CarpenterTech CRS
Caterpillar
CAT
Centene
CNC
Chegg
CHGG
ChembioDiagn CEMI
ChinaEastrnAir CEA
ChinaFinance JRJC
ChinaSoAirlines ZNH
ClearSignComb CLIR
Codexis
CDXS
Comerica
CMA
CommunityWestBcshs CWBC
ConocoPhillips COP
Cosan
CZZ
CostamarePfdB CMREpB
26.70 -0.1
25.82 0.6
57.30 0.4
20.94 0.1
204.96 0.2
47.41 0.3
2.87 -0.7
18.60 2.4
130.37 2.2
173.62 -0.1
12.08 0.3
25.00 5.7
32.30 0.8
89.48 0.8
25.68 -0.8
31.27 0.5
117.92 -0.4
28.70 2.0
25.10 -0.4
24.40 3.2
11.39 0.4
17.80 0.3
2.34 0.5
29.84 0.1
12.36 12.0
299.33 0.2
40.90 2.8
10.28 -0.4
95.40
...
91.88
...
118.99 -0.4
13.52 1.1
32.97 0.6
36.83 3.6
14.10 4.1
27.01 1.0
83.00 2.4
181.55 0.6
25.65 -0.2
53.61 0.1
152.60 1.1
104.65 2.0
16.67 -0.1
7.65 2.0
34.94 5.3
4.14 31.7
51.99 5.7
4.70
...
8.45 0.6
87.63
...
11.00 0.4
54.51 3.0
9.82 4.4
27.43 2.6
52-Wk %
Sym Hi/Lo Chg Stock
DDR PfdK
DDRpK
Danaher
DHR
Darden
DRI
Deere
DE
DiamondbkEner FANG
Dover
DOV
EMCOR
EME
EPAM Systems EPAM
EPR PropPfdG EPRpG
Ecopetrol
EC
EducDev
EDUC
eGain
EGAN
EmersonElec EMR
EmpireResorts NYNY
EmpresaDisCom EDN
EnPro
NPO
EntegraFin
ENFC
EntellusMedical ENTL
EntergyMS Bds EMP
EnviroStar
EVI
FMC
FMC
FNBBancorp
FNBG
FedAgriMtg C AGM
FedRealtyInvPfdC FRTpC
FedEx
FDX
FiatChrysler
FCAU
FirstAmerFin FAF
FirstHorizonNatl FHN
FortressTransport FTAI
FreeportMcM FCX
GardnerDenver GDI
GeneticTechs GENE
GoDaddy
GDDY
GolarLNG PfdA GMLPP
GolarLNG
GLNG
GrayTelevision GTN
GreeneCnty
GCBC
GrubHub
GRUB
GpoSupervielle SUPV
HDFC Bank
HDB
HMN Fin
HMNF
HSN
HSNI
Heico A
HEI.A
Heico
HEI
HennessyCapIIIWt HCAC.WS
Hilton
HLT
HollyFrontier
HFC
HomeDepot
HD
Hubbell
HUBB
HudsonGlobal HSON
JBHunt
JBHT
Huntsman
HUN
ICU Medical
ICUI
IONGeophysical IO
InnovativeIndPfdA IIPRpA
Insperity
NSP
Intel
INTC
52-Wk %
Sym Hi/Lo Chg
25.97 0.8 InterContinentl IHG
95.16 0.3 Intricon
IIN
62.42 0.1
21.75 4.2
98.29 -1.1 J&JSnackFoods JJSF
157.33 0.3
155.24 -0.1 JanusHenderson JHG
38.56 0.1
117.78 4.9 JetPay
JTPY
100.61
KB
57.97 1.6
KKR
21.39 0.7
... KB Fin
83.11 1.0 KKR
108.94
... KLA Tencor
3.40 36.8
KLAC 114.43 0.7
24.88 0.4 KMG Chem
KMG
68.13 -0.3
13.49 2.0 Kennametal
KMT
49.31 -0.1
17.98 3.8 KeyCorp
KEY
20.33 -0.1
KNX
44.50 1.0
5.15 1.0 Knight-Swift
69.74 0.6 LabCpAm
LH
165.18 -0.6
28.75 2.9 LeggMason
LM
42.15 0.6
52.25 -0.7 Leidos
LDOS
65.37 0.4
93.95 0.3 LibertyQVC A
QVCA
26.73 0.9
30.65 0.7 Lowe's
LOW
90.94 1.5
25.00 0.2 lululemon
LULU
77.28 0.4
25.49 -0.3 LunaInnov
LUNA
37.00 5.9 LutherBurbank LBC
2.60 1.6
12.67 1.3
95.78 0.5 LyondellBasell
LYB
38.88 1.3 MBFinPfdC
MBFIO 26.33 -0.2
111.47 0.9
78.62 0.5 MER Telemgmt MTSL
4.13 38.0
25.14 0.2 MFAFinNts2042 MFO
26.20 1.3
253.24 3.5 MGPIngredients MGPI
78.72 -0.1
18.44 0.8 MVC CapNts22 MVCD
25.69
57.50 -0.9 MagnaIntl
MGA
57.85 0.5
20.86 -1.1 MellanoxTech
MLNX
64.70 1.3
19.47 1.9 MeridianBancorp EBSB
20.95 -0.2
17.68 1.9 Methanex
MEOH
59.45 1.2
34.15 2.2 MichaelKors
KORS
63.98 0.6
MTU
7.39 1.4
NICE
90.10 0.4
1.79 79.4 MitsubishiUFJ
51.35 -0.8 NICE
...
25.68 0.5 NationalVision EYE
39.22 3.9
29.68 1.1 NeenahPaper
91.45 0.3
NP
17.43 3.3 NetElement
NETE
24.98 272.2
34.95 2.8 Newmark
NMRK
15.70 0.2
74.81 1.2 NexstarMedia
NXST
30.57 2.2 NorfolkSouthern NSC
100.49 0.5 NorwegCruise
19.45 2.1 Nxt-ID Wt
NCLH
NXTDW
79.90 2.5
145.43 0.8
56.41 -1.4
1.15 375.6
44.05 0.9 1-800-FLOWERS FLWS
11.60 1.3
83.80 0.4 OrthofixIntl
OFIX
55.17 0.7
OTEL
13.85 1.9
101.40 -0.3 Otelco
0.96 7.9 PSBusParksPfdY PSBpY 24.96 -0.1
78.63 0.7 PeabodyEnergy BTU
37.36 2.1
49.60 3.9 PennNational
31.20 5.1
PENN
187.90 0.7 Phillips66
PSX
135.24 1.9 PlanetFitness
PLNT
34.57
1.98 -1.5 PointerTel
PNTR
19.65 -2.6
113.83
... Pool
33.79 1.3 Presidio
225.38 -0.1 Progressive
s
-0.04
0.13
-1.01
0.26
-1.55
-0.17
1.45
0.42
-0.17
-0.30
0.87
-0.01
-0.28
-0.04
0.03
-0.83
-0.24
-0.55
-1.32
-0.56
-0.49
-0.12
-2.52
-0.15
-2.37
-0.37
1.34
-0.58
-1.45
-0.19
0.33
-0.54
0.43
-0.06
0.45
-1.62
7.50
0.22
-1.51
8.53
0.09
0.14
0.24
-0.06
0.08
-0.11
-0.02
-0.51
-0.23
-0.39
-0.46
-0.42
-0.57
1.31
-0.02
-0.33
0.28
-0.94
0.03
-0.41
-0.22
0.23
0.26
0.21
0.87
0.01
0.33
-0.21
Net
Sym Close Chg
s HomeDepot HD 187.31
HondaMotor HMC 34.12
Honeywell
HON 154.73
HormelFoods HRL 36.55
DR Horton
DHI 50.78
HostHotels HST 20.05
HuanengPower HNP 25.21
s Hubbell
HUBB 134.67
Humana
HUM 245.16
s JBHunt
JBHT 112.75
HuntingtonBcshs HBAN 14.64
HuntingIngalls HII 238.02
s Huntsman
HUN 33.24
HyattHotels H
71.60
IAC/InterActive IAC 126.97
ICICI Bank
IBN
9.74
IdexxLab
IDXX 158.68
IHSMarkit
INFO 45.43
ING Groep
ING 18.46
Invesco
IVZ
36.52
IPG Photonics IPGP 211.80
IQVIA
IQV 100.32
IRSA Prop
IRCP 56.99
IcahnEnterprises IEP
52.00
Icon
ICLR 114.55
IDEX
IEX 132.50
IllinoisToolWks ITW 168.55
Illumina
ILMN 216.44
ImperialOil
IMO 29.70
Incyte
INCY 94.03
Infosys
INFY 16.00
Ingersoll-Rand IR
87.21
Ingredion
INGR 141.02
s Intel
INTC 47.56
InteractiveBrkrs IBKR 59.50
ICE
ICE
70.02
s InterContinentl IHG 61.81
IBM
IBM 152.95
IntlFlavors
IFF 153.07
IntlPaper
IP
57.97
Interpublic
IPG
20.15
Intuit
INTU 159.35
IntuitiveSurgical ISRG 367.21
InvitatHomes INVH 23.33
IonisPharma IONS 50.73
IronMountain IRM 37.18
IsraelChemicals ICL
4.01
ItauUnibanco ITUB 12.45
Net
Sym Close Chg
Stock
s lululemon
LULU 76.88
s LyondellBasell LYB 109.92
1.33
-0.16
0.62
-0.27
-0.02
-0.23
0.05
2.52
...
0.01
0.03
0.02
0.42
-0.07
1.81
0.02
1.29
0.36
-0.04
-0.09
-1.34
-0.94
0.88
0.72
0.20
0.37
1.09
1.70
-0.26
-0.99
0.01
0.47
0.69
0.52
-0.48
-1.05
0.07
-0.28
-1.33
0.21
-0.24
-0.53
-0.14
-0.34
-0.20
-0.77
0.07
0.01
s
Net
Sym Close Chg
Stock
0.31
0.97
PayPal
PYPL 74.00
Pearson
PSO
9.66
PembinaPipeline PBA 35.11
Pentair
PNR 69.78
People'sUtdFin PBCT 18.87
M&T Bank
MTB 172.53 -1.37
PepsiCo
PEP 119.02
MGM Resorts MGM 33.16 0.32
PerkinElmer PKI
73.65
MPLX
MPLX 36.17 -0.09
Perrigo
PRGO 86.53
MSCI
MSCI 128.16 1.19
PetroChina PTR 69.24
Macerich
MAC 64.65 -1.21
PetroleoBrasil PBR
9.75
Macy's
M
25.33 0.08
PetroleoBrasilA PBR.A 9.30
MagellanMid MMP 68.48 -0.57
Pfizer
PFE 36.46
s MagnaIntl
MGA 57.49 0.30
PhilipMorris PM 104.37
Manpower
MAN 127.34 1.05
s Phillips66
PSX 100.72
ManulifeFin MFC 20.87 0.04
MarathonOil MRO 16.32 0.30 PilgrimPride PPC 32.41
57.55
MarathonPetrol MPC 65.66 0.91 PinnacleFoods PF
Markel
MKL 1131.13 0.22 PinnacleWest PNW 85.80
PioneerNatRscs
PXD
167.20
MarketAxess MKTX 202.91 0.81
Marriott
MAR 133.84 0.70 PlainsAllAmPipe PAA 20.86
PAGP 21.88
Marsh&McLen MMC 82.12 -0.40 PlainsGP
MartinMarietta MLM 204.64 0.97 PolarisIndustries PII 124.21
Potash
POT
19.68
MarvellTech MRVL 22.31 -0.06
PX 154.01
Masco
MAS 43.67 0.67 Praxair
PCLN 1774.00
Mastercard MA 151.45 -0.23 Priceline
MatchGroup MTCH 31.69 0.86 PrincipalFin PFG 71.25
Procter&Gamble
PG
91.53
MaximIntProducts MXIM 53.39 0.22
s
McCormickVtg MKC.V 101.46 -0.17 Progressive PGR 56.17
Prologis
PLD
63.05
McCormick MKC 101.40 -0.17
s
McDonalds MCD 172.17 -1.22 PrudentialFin PRU 117.11
PUK 49.73
McKesson
MCK 160.64 0.67 Prudential
Medtronic
MDT 81.38 -0.66 PublicServiceEnt PEG 50.98
PublicStorage
PSA 205.15
MelcoResorts MLCO 28.47 0.23
MercadoLibre MELI 314.90 -14.38 PulteGroup PHM 33.54
Qiagen
QGEN 32.08
Merck
MRK 56.11 -0.12
QRVO 67.07
MetLife
MET 51.01 0.22 Qorvo
QCOM 64.60
MettlerToledo MTD 626.66 -8.41 Qualcomm
QuantaServices
PWR 38.54
s MichaelKors KORS 63.72 0.36
QuestDiag
DGX
99.04
MicroFocus MFGP 33.10 -0.02
-0.50
0.08
0.32
0.59
-0.17
0.41
-0.19
0.64
0.30
0.13
0.09
-0.48
-2.68
1.58
0.16
0.15
-0.79
7.00
0.28
0.36
0.56
0.05
-0.16
-6.62
0.39
-0.15
0.38
-0.33
0.25
-0.26
-0.34
-3.06
0.17
-0.46
0.28
0.10
0.74
-0.44
M N
MicrochipTech MCHP 90.22
MicronTech MU 45.75
Microsemi
MSCC 52.94
s
Microsoft
MSFT 85.52
MidAmApt MAA 99.48
Middleby
MIDD 131.09
s MitsubishiUFJ MTU 7.35
MizuhoFin
MFG 3.71
MobileTeleSys MBT 9.70
s
MohawkInds MHK 277.55
MolsonCoors B TAP 80.59
Mondelez
MDLZ 42.95
JD.com
JD
42.16 -0.81 Monsanto
MON 115.00
JPMorganChase JPM 106.14 -0.37 MonsterBev MNST 64.02
JackHenry
JKHY 117.82 -0.07 Moody's
MCO 148.47
JacobsEngg JEC 66.39
... MorganStanley MS
52.51
JamesHardie JHX 17.04 -0.02 Mosaic
MOS 24.48
s JanusHenderson JHG 38.17 0.05 MotorolaSol MSI 92.10
JazzPharma JAZZ 131.06 -2.49 Mylan
MYL 41.22
JetBlue
JBLU 21.96 0.37 NRG Energy NRG 27.00
J&J
JNJ 141.16 -0.62 NTTDoCoMo DCM 23.62
JohnsonControls JCI
37.65 0.19 NVR
NVR 3420.00
JonesLang
JLL 148.40 1.53 NXP Semi
NXPI 116.74
JuniperNetworks JNPR 28.50 0.06 Nasdaq
NDAQ 75.05
KAR Auction KAR 50.84 0.52 NationalGrid NGG 58.30
s KB Fin
KB
57.86 0.89 NatlOilwell
NOV 34.32
s KKR
KKR 20.91 0.14 NatlRetailProp NNN 42.38
s KLA Tencor KLAC 112.45 0.83 NektarTherap NKTR 57.88
s
KT
KT
15.59 0.12 NetApp
NTAP 57.04
KSCitySouthern KSU 110.69 -1.38 Netease
NTES 362.43
Kellogg
K
66.87 1.40 Netflix
NFLX 188.82
s KeyCorp
KEY 20.09 -0.03 Neurocrine
NBIX 71.41
GGP
GGP 23.10 -0.27 KeysightTechs KEYS 42.93 -0.07 NewOrientalEduc EDU 91.81
Gallagher
AJG 64.21 -0.19 KilroyRealty KRC 73.18 -1.57 NY CmntyBcp NYCB 13.26
Gaming&Leisure GLPI 36.48 -0.45 KimberlyClark KMB 120.45 -0.12 NewellBrands NWL 30.21
Gap
GPS 34.32 0.01 KimcoRealty KIM 18.03 -0.28 NewfieldExpln NFX 30.43
s GardnerDenver GDI 34.01 0.72 KinderMorgan KMI 17.76 -0.16 NewmontMin NEM 36.61
Garmin
GRMN 58.80 0.22 s Knight-Swift KNX 44.19 0.44 NewsCorp B NWS 16.60
KSS 53.13 0.25 NewsCorp A NWSA 16.24
Gartner
IT
123.66 0.21 Kohl's
Gazit-Globe GZT 10.42 0.22 KoninklijkePhil PHG 38.15 -0.86 NextEraEnergy NEE 153.64
GeneralDynamics GD 201.30 1.47 KoreaElcPwr KEP 18.06 0.22 NielsenHoldings NLSN 36.22
KHC 77.38 -1.14 Nike
t GeneralElec GE
17.45 -0.14 KraftHeinz
NKE 63.59
KR
27.32 0.37 NiSource
GeneralMills GIS
58.76 1.13 Kroger
NI
24.96
KYO 66.48 0.13 NobleEnergy NBL 27.86
GeneralMotors GM
42.52 0.03 Kyocera
Genpact
G
32.54 -0.12 LATAMAirlines LTM 13.82 -0.13 Nokia
NOK
4.62
LB
60.40 0.06 NomuraHoldings NMR 5.91
Gentex
GNTX 20.74 0.26 L Brands
LPL 13.56 0.16 Nordson
GenuineParts GPC 93.22 0.21 LG Display
NDSN 143.10
LN
40.82 -0.72 Nordstrom
Gerdau
GGB
3.67 0.03 LINE
JWN 46.84
LKQ 40.74 -0.06 s NorfolkSouthern NSC 144.84
Gildan
GIL
32.18 0.03 LKQ
0.23 GileadSciences GILD 74.01 -0.34 L3 Tech
LLL 194.10 1.16 NorthernTrust NTRS 98.44
-0.76 GSK
LH 163.03 -0.92 NorthropGrum NOC 306.62
GSK 35.35 -0.01 s LabCpAm
0.45 GlobalPayments GPN 101.72 -1.00 LamResearch LRCX 188.83 2.72
s NorwegCruise NCLH 54.82
0.24 s GoDaddy
LAMR 74.45 -1.60 Novartis
GDDY 50.40 -0.41 LamarAdv
NVS 83.05
-1.02 Goldcorp
55.98 0.13
GG
12.50 0.18 LambWeston LW
NovoNordisk NVO 52.67
-0.05 GoldmanSachs GS 255.18 -1.30 LasVegasSands LVS
70.76 -0.48
Nucor
NUE 63.85
-0.11 Goodyear
LAZ 50.17 -0.86 Nutanix
GT
32.42 0.25 Lazard
NTNX 35.34
0.01 Graco
LEA 179.87 2.50
GGG 133.37 -1.08 Lear
NVIDIA
NVDA 196.80
0.47 Grainger
GWW 230.94 2.35 Leggett&Platt LEG 47.03 0.09
-0.45 GreatPlainsEner GXP 32.29 -0.08 s Leidos
LDOS 65.03 0.29
-0.14 Grifols
LEN 62.56 0.68
GRFS 21.95 -0.14 Lennar A
1.14 s GrubHub
LEN.B 49.66 0.64 OGE Energy OGE 32.97
GRUB 74.09 0.91 Lennar B
0.41 GpoAeroportuar PAC 104.75 0.13 LennoxIntl
OKE 51.51
LII
207.47 1.50 ONEOK
5.43 GpoAvalAcc AVAL 8.62 0.08 LeucadiaNatl LUK 26.42 0.71 OReillyAuto ORLY 242.05
-1.36 GpoFinGalicia GGAL 65.98 -0.10 LibertyBroadbandA LBRDA 81.08 -1.11 OccidentalPetrol OXY 71.88
-0.21 GpFinSantMex BSMX 7.62 0.06 LibertyBroadbandC LBRDK 81.24 -0.82 OldDomFreight ODFL 129.34
OMC 74.00
0.28 GrupoTelevisa TV
19.12 -0.05 LibertyGlobal C LBTYK 31.73 0.22 Omnicom
ON
20.96
4.45 HCA Healthcare HCA 86.45 -2.38 LibertyGlobal A LBTYA 32.70 0.17 ON Semi
OpenText
OTEX 32.73
0.36 HCP
...
HCP 25.84 -0.26 LibertyLiLAC A LILA 21.89
ORCL 47.90
-2.12 s HDFC Bank HDB 100.11 0.49 LibertyLiLAC C LILAK 21.53 -0.02 Oracle
ORAN 17.40
0.13 HD Supply
HDS 39.44 0.76 s LibertyQVC A QVCA 26.46 0.23 Orange
-0.37 HP
HPQ 21.46 0.04 LibertyVenturesA LVNTA 55.56 -0.42 OrbitalATK OA 132.22
IX
84.88
-0.25 HSBC
HSBC 51.10 0.56 LibertyFormOne C FWONK 34.06 -1.68 Orix
OSK 90.18
-0.75 Halliburton
HAL 47.42 1.55 LibertyFormOne A FWONA 32.61 -1.45 Oshkosh
90.63
-3.44 Hanesbrands HBI
20.30 -0.57 LibertyBraves A BATRA 23.25 -0.28 OwensCorning OC
PCG 51.12
-0.11 HarleyDavidson HOG 50.71 -0.48 LibertyBraves C BATRK 23.23 -0.31 PG&E
PHI
29.20
-0.39 Harris
HRS 142.34 -0.23 LibertySirius C LSXMK 39.00 -0.48 PLDT
PNC 144.92
-0.03 HartfordFinl HIG
56.35 -0.38 LibertySirius A LSXMA 39.21 -0.40 PNC Fin
PKX 78.18
-0.15 Hasbro
HAS 91.11 -0.56 LibertyProperty LPT 42.90 -0.29 POSCO
PPG 116.16
1.75 HealthcareAmer HTA 29.88 -0.82 EliLilly
LLY
85.74 -0.97 PPG Ind
PPL 31.59
-0.12 s Heico A
HEI.A 81.30 0.30 LincolnElectric LECO 90.96 0.08 t PPL
PTC 59.46
-0.52 s Heico
HEI
96.89 -0.31 LincolnNational LNC 77.41 0.60 PTC
PVH 135.62
-0.25 Helm&Payne HP
61.17 1.57 LionsGate A LGF.A 33.01 -0.39 PVH
PCAR 71.31
0.06 HenrySchein HSIC 71.10 -0.39 LionsGate B LGF.B 30.91 -0.44 Paccar
2.11 Herbalife
HLF 68.23 0.17 LiveNationEnt LYV 43.37 -0.69 PackagingCpAm PKG 119.74
-0.20 Hershey
3.63 -0.02 PacWestBancorp PACW 49.32
HSY 114.99 -0.46 LloydsBanking LYG
-0.03 Hess
HES 43.99 0.63 LockheedMartin LMT 317.72 -2.25 PaloAltoNtwks PANW 147.42
PK
29.00
L
49.51 -0.13 ParkHotels
0.19 HewlettPackard HPE 14.71 -0.09 Loews
-0.18 s Hilton
HLT 78.35 0.54 LogitechIntl LOGI 33.59 -0.12 ParkerHannifin PH 199.06
LOGM 113.10 -3.65 ParsleyEnergy PE
27.93
0.70 s HollyFrontier HFC 49.46 1.87 LogMeIn
PAYX 69.20
LOW 90.19 1.33 Paychex
0.29 Hologic
HOLX 43.44 -0.05 s Lowe's
n-
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
EatonVance EV
57.04
eBay
EBAY 37.93
Ecolab
ECL 134.08
Ecopetrol
EC
13.47
EdisonInt
EIX 68.30
EdwardsLife EW 114.15
ElectronicArts EA 108.45
EmersonElec EMR 68.96
EnbridgeEnPtrs EEP 14.00
Enbridge
ENB 38.53
Encana
ECA 12.06
EnelAmericas ENIA 10.60
EnelGenChile EOCC 26.24
EnergyTransferEq ETE 16.82
EnergyTransfer ETP 17.47
Entergy
ETR 80.20
EnterpriseProd EPD 26.00
Equifax
EFX 118.89
Equinix
EQIX 447.20
EquityLife
ELS 88.74
EquityResdntl EQR 63.81
Ericsson
ERIC 6.52
EssexProp
ESS 240.30
EsteeLauder EL 127.69
EverestRe
RE 216.51
EversourceEner ES
62.22
Exelixis
EXEL 28.02
Exelon
EXC 39.04
Expedia
EXPE 120.01
ExpeditorsIntl EXPD 64.48
ExpressScripts ESRX 73.99
ExtraSpaceSt EXR 85.66
ExxonMobil XOM 82.87
F5Networks FFIV 131.45
FMC
FMC 94.92
Facebook
FB 177.89
FactSet
FDS 194.96
Fastenal
FAST 53.55
FederalRealty FRT 130.52
FedEx
FDX 251.07
Ferrari
RACE 105.56
FiatChrysler FCAU 18.35
FibriaCelulose FBR 14.81
FidNatlFin
FNF 39.12
FidNatlInfo FIS
95.08
FifthThirdBncp FITB 30.51
58.com
WUBA 70.90
FirstAmerFin FAF 56.51
FirstData
FDC 16.17
FirstRepBank FRC 88.01
FirstSolar
FSLR 68.69
FirstEnergy FE
30.59
Fiserv
FISV 131.59
FleetCorTech FLT 190.17
Flex
FLEX 18.48
FlirSystems FLIR 47.14
Fluor
FLR 50.90
FomentoEconMex FMX 92.66
FordMotor
F
12.72
ForestCIty A FCE.A 23.66
Fortinet
FTNT 44.87
Fortis
FTS 36.02
Fortive
FTV 72.99
FortBrandsHome FBHS 67.90
Franco-Nevada FNV 77.14
FranklinRscs BEN 43.69
FreeportMcM FCX 17.66
FreseniusMed FMS 51.92
Stock
J K L
G H I
0.63
1.77
0.77
-0.31
-0.02
0.24
0.10
0.07
0.10
0.99
-0.11
-0.30
-1.00
-0.19
-1.68
-0.42
-0.01
-1.18
-0.02
-0.25
-0.08
32.37
0.29
-1.06
-0.11
0.70
-0.56
0.83
-0.87
0.56
1.80
2.53
0.92
-0.04
-0.60
0.59
0.26
-0.05
-0.03
-0.46
-1.28
-0.65
-0.34
0.63
-0.05
-0.01
0.71
0.33
1.12
0.42
-0.50
-0.77
-1.68
-0.12
1.42
-0.70
0.69
s
s
s
s
s
R S
s
s
RELX
RENX 22.86
RELX
RELX 23.46
RPM
RPM 52.45
RSP Permian RSPP 37.98
RalphLauren RL
98.62
RandgoldRscs GOLD 95.65
RaymondJames RJF 88.30
Raytheon
RTN 186.67
RealtyIncome O
55.61
RedHat
RHT 122.00
RegencyCtrs REG 68.01
RegenPharm REGN 382.89
RegionsFin RF
17.25
ReinsGrp
RGA 154.43
RelianceSteel RS
85.48
RepublicSvcs RSG 66.28
ResMed
RMD 85.57
RestaurantBrands QSR 61.26
RioTinto
RIO 50.57
RobertHalf RHI 55.87
Rockwell
ROK 193.07
RockwellCollins COL 135.07
RogersComm B RCI
50.18
Rollins
ROL 47.15
RoperTech
ROP 258.98
RossStores ROST 79.61
RoyalBkCanada RY
79.84
RoyalBkScotland RBS
7.48
RoyalCaribbean RCL 123.48
RoyalDutchA RDS.A 65.10
RoyalDutchB RDS.B 66.44
Ryanair
RYAAY 106.85
SAP
SAP 113.16
S&P Global SPGI 170.01
SBA Comm SBAC 157.98
SEI Investments SEIC 71.59
Sina
SINA 102.83
SINOPEC
SHI
56.40
SK Telecom SKM 27.89
SLGreenRealty SLG 98.99
SS&C Tech SSNC 40.38
SVB Fin
SIVB 236.30
SageTherap SAGE 163.44
Salesforce.com CRM 103.39
Sanofi
SNY 43.03
SantanderCons SC
18.28
Sasol
SSL 31.91
Scana
SCG 41.32
Schlumberger SLB 65.28
SchwabC
SCHW 51.81
ScottsMiracleGro SMG 102.85
ScrippsNetworks SNI
83.85
Seagate
STX 41.53
SealedAir
SEE 48.51
SeattleGenetics SGEN 52.37
SemicondctrMfg SMI
7.59
SempraEnergy SRE 111.93
SensataTech ST
52.55
ServiceCorp SCI
37.63
ServiceMaster SERV 51.71
ServiceNow NOW 129.00
ShawComm B SJR 22.55
SherwinWilliams SHW 414.34
ShinhanFin SHG 46.68
0.09
0.05
0.18
0.94
1.29
1.28
-0.37
-0.76
-0.74
-6.86
-0.99
-2.83
-0.05
-0.46
1.69
0.78
-0.55
0.34
1.08
0.47
-0.77
0.18
0.04
0.23
-0.16
1.07
0.09
-0.05
-2.47
0.20
0.14
0.35
-2.04
-1.99
-0.01
-0.21
0.60
0.73
-0.04
-2.63
-0.46
-1.93
2.07
-0.87
-0.15
0.15
0.52
-0.58
0.89
...
-0.13
0.08
-0.65
-1.15
-0.20
0.15
-0.26
0.24
0.28
-0.20
-0.96
-0.16
2.47
0.84
Net
Sym Close Chg
Stock
Shire
SHPG 153.20
Shopify
SHOP 105.24
SignatureBank SBNY 137.11
SimonProperty SPG 163.98
SiriusXM
SIRI
5.26
SkechersUSA SKX 37.58
Skyworks
SWKS 97.43
SmithAO
AOS 61.48
Smith&Nephew SNN 34.73
Smucker
SJM 123.42
Snap
SNAP 15.50
SnapOn
SNA 174.94
SOQUIMICH SQM 59.53
Sony
SNE 45.03
Southern
SO
49.94
SoCopper
SCCO 46.13
SouthwestAir LUV 66.09
SpectraEnerPtrs SEP 40.45
SpectrumBrands SPB 115.25
SpiritAeroSys SPR 85.74
Splunk
SPLK 83.62
Sprint
S
5.58
Square
SQ
35.66
StanleyBlackDck SWK 169.01
Starbucks
SBUX 57.73
StateStreet STT 97.08
Statoil
STO 20.47
SteelDynamics STLD 43.31
Steris
STE 89.29
STMicroelec STM 21.84
Stryker
SYK 154.78
SumitomoMits SMFG 8.77
SunComms SUI
91.63
SunLifeFinancial SLF 40.54
SuncorEnergy SU
34.69
SunTrustBanks STI
65.45
Symantec
SYMC 28.16
SynchronyFin SYF 37.96
Syngenta
SYT 92.67
Synopsys
SNPS 87.10
SynovusFin SNV 48.60
Sysco
SYY 60.78
100.98 1.6
...
PSDO
PGR
20.35 11.5 PrudentialFin
PRU
27.20 2.0 Quidel
QDEL
60.35 2.4 RayonierAdvMatls RYAM
18.65 0.6
52-Wk %
Sym Hi/Lo Chg Stock
33.80 -0.4 BioPharmX
0.10 -6.0
6.20 -1.9
4.65 1.0
25.16 0.2 Broadvision
2.66 -10.9
BVSN
79.81 1.4 ChemoCentryx CCXI
5.44 -1.8
71.13 -1.8 Co-Diagnostics CODX
2.35 -12.8
17.19 -2.2 ColonyNorthStar CLNS
11.63 -1.7
28.87 1.3 Comstock
CHCI
33.60 9.1 ComstockMining LODE
52.52 ... Volaris
VLRS
s
TAL Education TAL 29.23
TD Ameritrade AMTD 51.48
TE Connectivity TEL 96.23
Telus
TU
37.09
Ternium
TX
31.77
TIM Part
TSU 19.06
TJX
TJX 75.80
T-MobileUS TMUS 62.90
TRowePrice TROW 103.76
TaiwanSemi TSM 39.44
TakeTwoSoftware TTWO 108.75
Tapestry
TPR 43.28
TargaResources TRGP 45.54
Target
TGT 64.48
TataMotors TTM 32.73
TechnipFMC FTI
29.86
TeckRscsB
TECK 24.73
TelecomArgentina TEO 39.70
TelecomItalia TI
8.58
TelecomItalia A TI.A
7.08
TeledyneTech TDY 181.78
Teleflex
TFX 255.77
TelefonicaBras VIV 15.34
Telefonica
TEF
9.82
TelekmIndonesia TLK 30.63
Tenaris
TS
31.18
Teradyne
TER 43.00
Tesla
TSLA 328.98
TevaPharm TEVA 17.45
TexasInstruments TXN 104.80
Textron
TXT 57.00
ThermoFisherSci TMO 192.29
ThomsonReuters TRI
43.57
ThorIndustries THO 153.69
3M
MMM 236.92
Tiffany
TIF 100.05
TimeWarner TWX 90.58
Toll Bros
TOL 47.39
Torchmark
TMK 90.42
Toro
TTC 64.96
TorontoDomBk TD
56.50
Total
TOT 55.14
TotalSystem TSS 79.99
ToyotaMotor TM 127.63
TractorSupply TSCO 72.97
TransCanada TRP 47.89
TransDigm
TDG 271.42
TransUnion TRU 55.91
Travelers
TRV 135.26
Trimble
TRMB 40.94
TurkcellIletism TKC
9.71
TurquoiseHill TRQ
3.27
21stCenturyFoxA FOXA 34.27
21stCenturyFoxB FOX 33.86
Twitter
TWTR 25.20
TylerTech
TYL 179.11
TysonFoods TSN 81.33
UBS Group UBS 18.21
UDR
UDR 38.03
UGI
UGI 46.90
63.77 -2.3
66.47 0.3 ErytechPharma ERYP
17.40 8.5 EssaPharma
EPIX
43.56 4.6 Evogene
EVGN
17.50 -5.7
8.85 0.9 FAT Brands
22.25 -1.1 Ferrellgas
FAT
FGP
66.62 -0.3 ForwardPharma FWP
138.08 -0.2 Frontline
FRO
40.19 3.4 GeneralElec
GE
105.15 0.7 GlobalNetLease GNL
57.32 1.2 GlobalSCAPE GSB
90.87 0.3 IMPAC Mortgage IMH
80.51 0.6 ImmunePharma IMNP
23.90 2.5 KennedyWilson KW
67.55 2.5 LTC Properties LTC
8.23 3.3 LegacyAcqnWt LGC.WS
135.30 1.1 LegacyResPfdB LGCYO
13.65 0.7 NordicAmerTankers NAT
Latest
3.80 1.5
U.S.
Canada
Japan
20.42 -1.2
3.34 1.6
10.00 -3.6
0.50 -13.5
17.15 -1.1
43.91 -2.2
0.42 -2.3
3.69 0.5
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.50
1.50
1.47
U.S.
PRKR
1.05 -1.8
Federal funds
PGLC
2.26 -4.9
PRPO
0.99 6.5
PRTA
34.85 1.5
RLOG
0.17 -5.4
Effective rate
High
Low
Bid
Offer
4.82 -4.0
2.35 -8.4
46.02 6.9 Alexander&Baldwin ALEX
27.60 -0.7
20.18 2.0 AmCampus
40.67 -1.7
0.22 -23.1
2.00
1.4200
1.5625
1.3000
1.4100
1.4200
TCPC
15.27 -0.3
TSRO
76.19 -0.7
TOPS
0.24 -0.9
TNK
1.30 1.5
Increased
HTM
3.21 0.6
Camden National
0.48 -2.9
63.65 -1.3
YTRA
7.59 -1.3
ZLAB
22.30 -2.8
ZEAL
12.45 -1.5
15.37
9.8
10.2
17.70
–1.7 –17.5
9.98
–0.2
–0.2
12.25
14.0
4.3
W X Y Z
s
WABCO
WBC 143.51
WEC Energy WEC 65.94
WEX
WEX 138.72
W.P.Carey
WPC 68.98
WPP
WPP 90.41
Wabtec
WAB 80.39
Wal-Mart
WMT 98.75
WalgreensBoots WBA 72.72
WasteConnections WCN 70.54
WasteMgt
WM 85.79
Waters
WAT 196.06
Watsco
WSO 168.68
Wayfair
W
81.58
Weibo
WB 105.53
WellCareHealth WCG 200.71
WellsFargo WFC 60.14
Welltower
HCN 63.66
WestPharmSvcs WST 100.30
WestarEnergy WR 53.14
WestAllianceBcp WAL 57.84
WesternDigital WDC 82.77
WesternGasEquity WGP 36.55
WesternGasPtrs WES 46.76
WesternUnion WU 19.47
WestlakeChem WLK 103.53
WestpacBanking WBK 23.98
WestRock
WRK 63.73
Weyerhaeuser WY 35.42
WheatonPrecMet WPM 22.09
Whirlpool
WHR 164.88
Williams
WMB 30.05
WilliamsPartners WPZ 38.50
WillisTowers WLTW 153.12
WinsFinance WINS 360.00
Wipro
WIT
5.57
WooriBank WF
45.45
Workday
WDAY 102.00
Wyndham
WYN 112.83
WynnResorts WYNN 168.95
XPO Logistics XPO 79.15
XcelEnergy XEL 48.49
Xerox
XRX 29.99
Xilinx
XLNX 68.99
Xylem
XYL 67.82
YPF
YPF 21.58
YY
YY 112.93
Yandex
YNDX 32.01
YumBrands YUM 82.13
YumChina
YUMC 40.91
ZTO Express ZTO 15.65
ZayoGroup ZAYO 35.96
Zillow C
Z
43.07
Zillow A
ZG
42.84
ZimmerBiomet ZBH 121.18
ZionsBancorp ZION 50.73
Zoetis
ZTS 72.71
t
s
s
0.56
-0.19
0.46
-0.40
-0.16
1.48
-0.05
0.53
0.22
0.14
-2.02
1.05
-0.11
-1.63
1.79
-0.22
-0.82
0.65
-0.33
-0.49
-1.47
-0.20
-0.05
-0.12
0.63
-0.04
0.33
-0.06
0.28
-1.22
-0.01
-0.21
-1.03
36.01
-0.02
0.24
-0.93
-0.73
2.81
1.41
-0.84
-0.02
-0.81
-0.04
0.57
0.94
-0.25
-0.73
-1.10
0.66
-0.33
-0.14
-0.16
-0.20
-0.16
-0.09
% Chg From
Wed3s Offer 1st-day
close ($) price close
14.03
0.2
–1.2
23.00
–4.2
...
19.33
28.9
10.6
9.95
–0.5
–0.1
Regalwood Global Energy 10.00
RWGE.U Dec. 1/$10.00
...
...
Sources: WSJ Market Data Group; FactSet Research Systems
December 20, 2017
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
1.47
Week
Latest ago
0.00
0.50
0.25
1.50
0.48
Euro Libor
One month
Three month
Six month
One year
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
Company
Symbol
Week
ago
One month
Three month
Six month
One year
52-Week
high
low
3.25
3.00
3.25
1.463
1.477
Treasury
MBS
2.50
-0.376
-0.334
-0.227
-0.086
-0.417
-0.387
-0.325
-0.261
-0.371
-0.329
-0.273
-0.191
Value
Traded
-0.366
-0.315
-0.216
-0.081
-0.375
-0.332
-0.276
-0.194
52-Week
High
Low
1.57
1.52
1.58
36.300 1.498 0.448
93.694 1.541 0.483
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
0.72
DTCC GCF Repo Index Futures
Libor
Treasury Dec
Treasury Jan
Treasury Feb
1.53488 1.47703 1.53488 0.75500
1.65793 1.58849 1.65793 0.99706
98.660 unch. 3909 1.340
98.555 -0.005 2028 1.445
98.550 unch. 813 1.450
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.
Amount
Yld % New/Old Frq
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Stocks
Payable /
Record
CAC
2.3
Q
Jan31 /Jan15
MTR
9.4 .1245 /.14158 M
9.1 .5625 /.675 Q
Jan31 /Dec29
Jan15 /Dec29
Heico Cl A
Heico Corp
5:4
5:4
HEI.A
HEI
Jan17 /Jan18
Jan17 /Jan18
Foreign
Granite REIT
Telecom Argentina ADR
GRP.U
TEO
5.5
3.1
CMCT
2.6
.17713 M
1.21877 A
Jan16 /Dec29
Jan08 /Dec28
Special
CIM Commerical Trust
NGLpB
-0.417
-0.386
-0.316
-0.258
DTCC GCF Repo Index
Reduced
Mesa Royalty Trust
NGL Engy Ptrs Pfd. B
-0.370
-0.329
-0.271
-0.188
Latest
Call money
Company
.25 /.23
-0.416
-0.387
-0.321
-0.247
Euro interbank offered rate (Euribor)
Other short-term rates
One month
Three month
—52-WEEK—
High Low
1.81413 1.75575 1.81413 1.31600
2.08366 2.03856 2.08366 1.68456
Six month
One year
3.531 3.501 3.865 3.253
3.564 3.533 3.899 3.281
30 days
60 days
90 days
1.10
—52-WEEK—
High Low
30-year mortgage yields
Dividend announcements from December 20.
30.98 0.3
HCN
s
CURO Grp Hldgs
CURO Dec. 7/$14.00
Odonate Thera
ODT Dec. 7/$24.00
Quanterix
QTRX Dec. 7/$15.00
Leisure Acquisition
LACQU Dec. 1/$10.00
Secondary market
Dividend Changes
SJI
VVUS
2.7
Discount
9.65 -4.9
TeekayTankers
US Geothermal
Vivus
Welltower
YatraOnline
ZaiLab
ZealandPharma
52-Week
High
Low
U.S. government rates
PCYG
169.25 1.7 TESARO
7.25 7.0 TOP Ships
Week
ago
Overnight repurchase
40.40 4.9 ParkerVision
15.48 4.0 PershingGold
58.65 -4.6 SoJerseyInd
31.34 0.4 TCP Capital
13.8
Fannie Mae
Policy Rates
31.53 -2.6
104.24 0.6 SilverRunII Wt SRUNW 1.28 -2.5
66.90 -0.1 SolarCapital
SLRC 19.90 0.4
12.75 0.8 SorrentoTech ROKA
0.60 -31.6
14.79
1.245 1.240 1.300 0.400
1.355 1.320 1.355 0.505
1.480 1.460 1.480 0.590
4 weeks
13 weeks
26 weeks
Latest
PPL
RNWK 3.77 -2.3
4.55 5.8 RestorationRob HAIR
4.54 -3.4
29.95 0.7 SAExploration SAEX
1.18 -17.2
16.98 1.1 Scana
40.80 -1.4
SCG
39.50 1.0 SeritageGrwPfdA SRGpA 24.00 -1.3
s
Company SYMBOL
IPO date/Offer price
Treasury bill auction
4.50 4.25 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
11.94 2.7 PPL
90.48 2.4 ParkCity
129.50 0.4 RandLogistics
139.85 0.3 RealNetworks
2.2
1.7
International rates
Prime rates
2.47 -2.7
11.15 0.5 NorwegCruise NCLH 54.74 -1.4
127.89 0.2 OFGBancorpPfB OFGpB 21.29 ...
1.98 2.7 OpGen
0.17 -2.9
OPGN
34.98 1.0 OrexigenTherap OREX
1.14 0.9
4.33 -3.3 Precipio
2.75 -0.4 Prothena
0.002
–0.06
246.669
253.492
All items
Core
7.52 -4.8
17.36 -0.8
% Chg From
Wed3s Offer 1st-day
close ($) price close
Week
Latest ago
Chg From (%)
Oct. '17 Nov. '16
U.S. consumer price index
0.15 -5.3
4.54 -0.9
s
Performance of IPOs, most-recent listed first
12.24 0.9
3.04 -0.6
s
s
0.20
-1.47
-1.34
0.17
-0.26
-0.38
-0.46
-0.33
1.44
1.47
0.01
-0.67
1.92
-0.30
0.53
0.22
0.34
0.34
1.50
-0.26
0.59
-0.08
-0.09
0.55
-0.02
-2.27
0.31
0.03
2.09
-0.10
0.09
0.30
0.44
-1.14
0.46
0.32
-0.06
-0.03
0.26
0.10
0.01
0.16
0.48
-0.05
-1.36
0.55
-0.28
IPO Scorecard
Inflation
Nov. index
level
25.49 -0.7
3.34 -2.6
s
s
US Foods
USFD 30.90
UltaBeauty ULTA 226.00
UltSoftware ULTI 219.36
UltraparPart UGP 22.14
UnderArmour A UAA 15.17
UnderArmour C UA
13.72
Unilever
UN
56.47
Unilever
UL
55.42
UnionPacific UNP 134.68
UnitedContinental UAL 65.90
UnitedMicro UMC 2.47
UPS B
UPS 118.33
UnitedRentals URI 168.30
US Bancorp USB 54.26
US Steel
X
34.37
UnitedTech UTX 127.00
UnitedTherap UTHR 135.86
UnitedHealth UNH 222.38
UnivDisplay OLED 180.85
UniversalHealthB UHS 112.78
UnumGroup UNM 54.80
VEON
VEON 3.82
VEREIT
VER
7.76
VF
VFC 74.40
Visa
V
112.12
VailResorts MTN 216.99
Vale
VALE 11.87
ValeantPharm VRX 20.89
ValeroEnergy VLO 90.16
Vantiv
VNTV 74.91
VarianMed
VAR 110.79
Vedanta
VEDL 19.85
VeevaSystems VEEV 57.10
Ventas
VTR 60.69
VeriSign
VRSN 116.01
VeriskAnalytics VRSK 96.32
Verizon
VZ
52.77
VertxPharm VRTX 145.12
Viacom B
VIAB 31.19
Viacom A
VIA 34.90
Vipshop
VIPS 12.02
VistraEnergy VST 18.16
VMware
VMW 128.62
Vodafone
VOD 31.40
VornadoRealty VNO 76.82
VoyaFinancial VOYA 46.83
VulcanMatls VMC 118.98
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.
0.29 -4.2
21.61 39.8 EPR Prop
EPR
25.25 0.4 EaglePointPfdA ECCA
46.31 2.5 EllingtonResiMtg EARN
-0.37
-0.35
-0.98
0.98
-0.44
0.13 s
0.16
0.02
0.08
-0.01
-0.08
-0.20
0.47
Company SYMBOL
1.87
IPO date/Offer price
-0.93
-0.09
Casa Sys
-0.18
CASA Dec. 15/$13.00
2.36
Newmark Grp
-0.15
NMRK Dec. 15/$14.00
-0.83
-0.39
Denali Thera
-0.98
DNLI Dec. 8/$18.00
0.41
GigCapital
0.90
GIG.U Dec. 8/$10.00
0.29
-1.52
Luther Burbank
0.10
LBC Dec. 8/$10.75
0.99
1.09
-0.06
s
s
0.37
-0.48
0.32
-0.21
0.61
0.27
-0.26
-0.74
0.62
0.10
-0.53
-0.20
-0.15
0.42
0.18
1.17
0.73
1.29
-0.13
-0.23
-0.97
1.54
-0.02
-0.05
-0.15
0.58
0.54
-2.12
-0.45
0.70
0.65
-1.60
0.11
-0.23
-1.47
-0.37
0.70
-0.05
0.28
0.38
0.15
0.57
0.45
0.62
2.47
-0.07
0.50
-0.02
-0.28
-0.29
-0.13
...
-0.79
-0.51
0.12
-1.18
-0.13
-0.17
-0.11
0.11
Net
Sym Close Chg
Stock
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
1.20 0.8
8.65 -2.3
103.92 -0.1 CorpOfficeProp OFC
29.41 -2.9
17.49 2.1 Cowen7.35%Nts COWNZ 25.07 0.4
7.00 28.6 DenaliTherap
17.50 -3.2
DNLI
414.98 0.6 DiffusionPharm DFFN
1.25 ...
ADOM
ACC
BPMX
11.00 2.4 BlueknightEner BKEP
Lows
47.64 1.1 RayonierAdvPfdA RYAMpA 143.53 1.7 AtossaGenetics ATOS
52-Wk %
Sym Hi/Lo Chg
17.53 -0.3 BlackRockCapInvt BKCC
56.28 0.7 ACM Research ACMR
118.17 0.2 ADOMANI
s
s
O P Q
RedRockResorts RRR
RegionsFin
RF
ResoluteForest RFP
RexfordIndPfdB REXRpB
RossStores
ROST
RymanHospitality RHP
Savara
SVRA
SchneiderNatl SNDR
SchnitzerSteel SCHN
SchwabC
SCHW
ScottsMiracleGro SMG
SelectEnergySvcs WTTR
SevenStarsCloud SSC
SherwinWilliams SHW
SiebertFin
SIEB
SoCA Ed pfC SCEpC
SoCopper
SCCO
SouthwestAir LUV
SpartanMotors SPAR
SteelDynamics STLD
SumitomoMits SMFG
SunTrustBanksWtB STI.WS.B
SunTrustBanks STI
Synnex
SNX
TelecomArgentina TEO
TexasInstruments TXN
Textron
TXT
Torchmark
TMK
TotalSystem
TSS
TransportadGas TGS
Tucows
TCX
21 Vianet
VNET
UnionPacific
UNP
UnitedBancorpOH UBCP
UnitedSecBcshrs UBFO
UnitedTech
UTX
UraniumEner UEC
UrbanOutfitters URBN
Vale
VALE
ValeroEnergy VLO
VarexImaging VREX
Verso
VRS
VikingTherap VKTX
VikingTheraWt VKTXW
VMware
VMW
WEX
WEX
WSIIndustries WSCI
WellesleyBancorp WEBK
Wendy's
WEN
WernerEnterprises WERN
WestlakeChem WLK
Wiley A
JW.A
WillScot
WSC
Winnebago
WGO
WolverineWwide WWW
WynnResorts WYNN
XinyuanRealEst XIN
POOL 131.83 -0.3
t
-4.45
-0.49
-0.35
-4.44
-0.06
-0.03
1.75
0.19
-0.17
1.95
-0.27
2.59
1.10
-0.31
0.13
1.12
0.17
-0.59
6.98
0.36
-0.59
...
-1.26
0.36
-0.28
-0.79
0.28
1.91
-0.69
-0.37
-0.48
0.08
-0.53
0.01
0.30
-0.18
-0.15
-0.22
-0.03
-1.27
-0.10
-0.24
T U V
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Wednesday, December 20, 2017
Net
Sym Close Chg
ly
.
How to Read the Stock Tables
.73
Jan11 /Dec29
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-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.
B10 | Thursday, December 21, 2017
THE WALL STREET JOURNAL.
* ***
BANKING & FINANCE
Hedge Funds Circle Back Over Greece
Money managers say
assets are cheap as
country shows signs
of economic progress
A manufacturing facility in Thessaloniki. Greece is expected to exit the last of its three bailout programs next year.
Revival Bets
Greek stocks have badly lagged behind the U.S. and Europe in recent
years. Some asset managers think change is coming.
Index performance
90%
S&P 500
60
30
Stoxx
Europe 600
0
about 10 investment professionals in Athens, which will
expand to as much as 18 by
the end of next year.
“Greece for a very long
time was structurally uninvestable,” said Brevan founding partner Trifon Natsis, who
will run both funds. “For all
practical purposes all the tail
risks have disappeared,” he
said, citing structural overhauls and “very difficult measures” taken by the Greek government. He believes about
one-quarter to one-third of
Greece’s revival is linked to
Europe’s recovery.
Data on hedge funds’ bets
on Greek stocks, which can indicate how positive or negative they are, is sporadic. But
assets in exchange-traded
funds exposed to Greek
shares—one way that investors can gain exposure—have
jumped this year to a record
ly
.
Composite Index trades at
about 13 times.
Signs of economic progress
are emerging. Having spent
most of the past decade in recession, Greece is expected to
finally exit the last of its three
bailout programs in August
2018. Greece tapped the debt
markets for the first time in
three years in July and is
planning to borrow more before the program ends. In September, the European Union
indicated that Greece had
made progress in bringing its
finances under control.
Among funds to increase
exposure to Greece recently is
London- and New York-based
distressed investing specialist
VR Capital, said a person familiar with its positions, while
New York-based Autonomy
Capital, which manages about
$5 billion, has increased its
exposure to Greek financial
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Some hedge funds are
starting to buy assets in
Greece after a lengthy hiatus,
betting the former sick man of
Europe has been overlooked
by most investors and offers
potential bargains.
Funds including Brevan
Howard Asset Management
LLP, Amber Capital and VR
Capital Group Ltd. have been
considering a range of Greek
assets in recent months. Managers say that while Greece is
now finally benefiting from
Europe’s economic recovery,
many investors have overlooked Greek assets because of
the country’s long-running
debt crisis.
“I like Greece a lot. It’s the
only cheap market out there,”
said Joseph Oughourlian,
founder of London-based Amber Capital, which manages
about $1.7 billion in assets.
He said that until recently
he had “never invested in
Greece my entire life, never
ever.” He said he bought Greek
bonds about a year ago but
more recently switched into
stocks. After its debt woes, the
country could experience some
normalization, and risks have
been removed, he said.
Last month, The Wall Street
Journal disclosed Amber
owned a stake in Hellenic
Telecommunications Organization SA and was pushing for
a restructuring.
After trillions of dollars of
central bank stimulus, few financial assets globally are
now considered cheap. But
Greek stocks still stand at a
discount to major markets.
While the S&P 500 trades at
about 18 times forward earnings and the Stoxx Europe 600
at 15 times, Greece’s Athex
ALEXANDROS AVRAMIDIS/REUTERS
BY LAURENCE FLETCHER
–30
Athex
–60
2013
’14
’15
Source: FactSet
firms. VR Capital didn’t respond to requests to comment.
Autonomy declined to comment.
Brevan Howard, one of Europe’s biggest hedge-fund
’16
’17
THE WALL STREET JOURNAL.
firms with about $10 billion in
assets, is looking to raise an
initial $500 million for a commercial real-estate fund and
an equity fund to invest in
Greece. It is hiring a team of
China Pushes Its Way Into the Oil Market
no
China is preparing to
launch a yuan-based oil-futures contract, a move that
could shake up the global
crude market dominated by
trading in London and New
York.
No official launch date has
been announced, but traders
and analysts in China say they
expect tradCOMMODITIES ing to begin
by
early
2018. Trading will be based at the Shanghai International Energy Exchange, which has already
conducted five test runs for
the new contract, according to
its website.
Uncertainties remain, including whether foreign investors and large oil companies
will trade the contracts. Authorities in China, the world’s
biggest importer of crude,
hope it will provide a benchmark price for oil in Asia that
matches the region’s voracious
demand.
A yuan-denominated oil
Changing Places
n-
BY GEORGI KANTCHEV
contract could also challenge
the role of the U.S. dollar, the
dominant commodity-pricing
currency, by making it possible for crude exporters to sell
the oil in another currency.
The introduction of the
Shanghai oil contract is part
of Beijing’s strategy to make
the yuan a major international
currency, analysts say.
Foreign investors will be allowed to trade the contract,
the first time they have been
allowed to participate in
China’s domestic commodities
markets without setting up
onshore trading operations.
Analysts say it could take
time before China’s oil futures
challenge the dominance in
crude trading of the two
global benchmarks, Brent
crude futures, traded in London, and West Texas Intermediate futures, the main U.S.
gauge, traded in New York.
China’s commodities markets have become a byword
for volatile trading. And Beijing’s record of intervening in
its domestic markets could
arouse wariness among foreign participants.
Also, pricing the new futures contract in yuan adds an
extra slice of currency risk to
a commodity whose price can
move on news from conflicts
in the Middle East to the output of shale producers in the
U.S. Big oil-market participants, including exporters like
Saudi Arabia and Russia and
oil companies like Exxon Mobil Corp., may be reluctant to
use Chinese futures.
Big oil companies, including
Exxon, Royal Dutch Shell PLC,
BP PLC, Chevron Corp. and
Total SA, and the China Securities Regulatory Commission,
the country’s chief market regulator, declined to comment.
“The Chinese have been
talking about it forever, but
they seem very serious this
time,” said Doug King, chief
investment officer of Singapore-based hedge fund Merchant Commodity, after visiting the Shanghai Stock
Exchange this year.
An important factor for
many foreign investors will
be how China adapts its capital controls to allow them to
get their money in and out of
the Shanghai market. Mr.
King’s hedge fund previously
had to open a subsidiary on
the mainland to trade commodities on the domestic
market.
“They say this will be different; this will be key to see
any take-up by foreign investors,” he said. “If they don’t
change the rules, the contract
will be dead in the water.”
U.S. Stocks Edge Lower as Congress Passes Tax Bill
U.S. stocks inched lower for
a second consecutive day after
Congress passed the largest
overhaul of the U.S. tax system
in three decades.
Wednesday’s pause came as
investors debated how much of
the bill alWEDNESDAY’S ready has
MARKETS
been priced
into markets
and
what impact the changes will
have on the economy. U.S.
stocks have climbed to fresh
highs recently, in part on expectations that the bill will
boost corporate profits, particularly among banks and retailers, which tend to pay a higher
effective tax rate.
“The question for 2018 is:
Will there be a positive effect
on growth from the tax cuts?”
said Abi Oladimeji, chief investment officer at Thomas
Miller Investment.
The Dow Jones Industrial
Average declined 28.10 points,
or 0.1%, to 24726.65. The S&P
500 fell 2.22 points, or 0.1%, to
2679.25 and the Nasdaq Composite shed 2.89 points, or less
than 0.1%, to 6960.96.
Stocks climbed slightly after
the House passed the $1.5 trillion tax cut for a second time
due to procedural issues before
they pared those increases.
Some analysts believe the
tax shake-up could lift growth
and inflation in the U.S., pushing up bond yields and
prompting the Federal Reserve
to tighten monetary policy
more quickly than anticipated.
Some say a faster pace of interest-rate increases could
threaten the stock-market
rally, as accommodative central-bank policy in an improving global economy has supported stocks.
Micron Technology shares
rose $1.77, or 4%, to $45.75 after the chip maker’s quarterly
sales and profits topped Wall
Street estimates late Tuesday,
as did the firm’s forecast for
the current quarter.
Shares of FedEx climbed
8.53, or 3.5%, to 251.07. The
freight carrier raised its 2018
Earnings Swings
Micron Technology, FedEx and
Stitch Fix were among the market’s
biggest movers Wednesday after
reporting earnings.
10%
Performance minute-by-minute
5
0
CHRISTOPHER DILTS/BLOOMBERG NEWS
BY RIVA GOLD
AND AMRITH RAMKUMAR
Micron Technology
FedEx
Stitch Fix
–5
–10
–15
10
noon
2
4
Source: FactSet
The freight carrier’s stock climbed 3.5% on optimistic projections.
THE WALL STREET JOURNAL.
fiscal-year projections after
the market closed Tuesday following better-than-expected
results for the most recent
quarter.
Stitch Fix shares shed 2.42,
or 9.8%, to 22.34 after the
fashion startup reported
Japan’s Nikkei edged up 0.1%.
Chinese equities fell, reversing
some of Tuesday’s gains. At
midday Thursday in Tokyo, the
Nikkei was down 0.4%, while
Chinese stocks were flat.
—Kenan Machado
contributed to this article.
strong customer gains but said
profits were pinched by the
costs of expanding into men’s
and plus-size apparel.
Elsewhere, the Stoxx Europe
600 fell 0.7%, weighed down by
losses in technology and
health-care
companies..
$566 million, according to
data group IHS Markit, from
$443 million last year.
For some, the moves represent a return to Greece after
hedge funds pounced on the
country in the aftermath of
the financial crisis, betting
against its bonds before later
buying them at low prices.
Some managers made big
profits in 2012 when the country paid out bondholders who
had rejected a debt exchange,
having previously said it
wouldn’t. Many other investors, including banks, took
heavy losses as the country restructured its debt.
But Greece has more recently slipped off many investors’ radars amid weak economic performance and a lack
of positive news, opening up a
possible opportunity for some
managers.
Credit is among the areas
attracting attention. U.S. consulting firm Alvarez &
Marsal’s Greek subsidiary is
starting to service loan portfolios for private-equity and
credit funds investing in Greek
debt.
“We’ve seen improving sentiment in Greece and increased investor interest,
whether it’s from hedge funds
or other funds,” said Marios
Koliopoulos, the subsidiary’s
chief executive officer and former deputy CEO of the Hellenic Financial Stability Fund.
Greek banks are having to accelerate clearing their stockpiles of nonperforming loans
to meet a European Central
Bank target.
In another sign of increasing interest in the country,
London-based hedge fund
Chenavari, which manages
about $5.5 billion in assets,
has helped finance Greek companies buying ships and was
attracted by the low asset
prices. “Greece is one of the
most undervalued economies,”
said CEO Loic Fery.
—Nektaria Stamouli
contributed to this article.
Crude Glut
May Chill
Arctic Plan
BY TIMOTHY PUKO
WASHINGTON—Congressional Republicans and the
Trump administration are
poised to offer up a host of
new opportunities for oil exploration in lands and waters
owned by the government.
They happen to be doing it,
however, when a glutted oil
market has companies less eager to find new sites to drill.
The tax bill that cleared
Congress Wednesday includes
a provision to lease most of
the coastal plain in the Arctic
National Wildlife Refuge. And
the Interior Department is
also pushing to expand offshore drilling. Millions of
acres could be opened to oil
extraction for the first time.
The actions are part of a
Trump administration push to
lower costs for the U.S. oil industry in hopes of making it
more competitive globally.
That has been welcome among
Republicans in Congress,
whose approval is needed to
overturn protections on the
Arctic refuge that date to
1980.
Republican
Sen.
Lisa
Murkowski of Alaska was considered a swing vote on the
tax overhaul until she was able
to attach a provision opening
the refuge.
Some supporters believe
rising prices since this summer signal a turning point.
Cutbacks have whittled away
at surplus stocks this year, and
a lack of investment could create shortages later that make
big prospects like Alaska and
offshore fields more alluring.
Yet many investors and analysts expect only tepid interest if Congress and the Trump
administration follow through
on plans to lease out what
some think are the biggest untapped oil fields in the U.S.
The industry is still recovering from a world-wide glut.
With so much oil available,
companies cut exploration
budgets by more than half, to
$40 billion from a 2014 peak
of $95 billion, according to energy consulting firm Wood
Mackenzie. It is at a recordlow share of their investment
budgets, just 8%.
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.
Thursday, December 21, 2017 | B11
THE WALL STREET JOURNAL.
MARKETS
Treasury Yields Are on a Roll—Higher
3.0%
10-year Treasury yield
2.5
2.0
1.5
Two-year Treasury yield
1.0
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Investors' expectations for inflation remain relatively low...
...while the Fed's preferred inflation gauge has
largely held below its 2% target.
2.5%
2.0%
Break-even inflation rate
10-year
2.0
Dec.
Personal consumption expenditures,
change from a year earlier
1.5
1.0
1.5
Five-year
1.0
0.5
0.5
0
2013
’14
’15
’16
’17
2013
Stock prices have risen...
’14
’15
’16
’17
...while the Fed has raised interest rates.
25000
1.50
Dow Jones Industrial Average
Target fed-funds rate
1.25
24000
1.00
23000
0.75
22000
0.50
21000
0.25
20000
0
J
F
M
A
M
J
J
A
S
O
N
D
2013
2014
2015
Sources: Ryan ALM (yields); Federal Reserve Bank of St. Louis (break-even inflation rate, fed-funds
rate); WSJ Market Data Group (DJIA); Thomson Reuters (expenditures)
tors in November poured $1.6
billion into funds that buy
Treasury inflation-protected securities, or TIPS, whose principal value adjusts for changes in
inflation, the most since March,
according to Wells Fargo Secu-
rities, a sign that some anticipate higher prices next year.
Lackluster inflation data
has been one of the biggest
obstacles to a prolonged rise
in the 10-year Treasury yield
this year, said many investors.
Inflation is a threat to the
value of long-term government
bonds because it erodes the
purchasing power of the securities’ fixed payments.
The stall in the 10-year
yield has contributed to a nar-
2016
2017
THE WALL STREET JOURNAL.
rowing gap between shorterand longer-term bond yields
as the Federal Reserve has
raised interest rates three
times this year, pushing up the
yield on the two-year Treasury
note, which is more sensitive
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Big Tech Won’t Blow Tax Bonus
Homecoming
Total cash and equivalents held offshore, in billions
$252.3
Apple
132.1
Microsoft
69.1
Cisco
Oracle
60.5
n-
Alphabet
58.5
29.4
Qualcomm
no
Big tech companies face a
high-quality problem heading into the new year: all
that money, and not much
good to do with it.
Passage of Republicans’
ambitious tax plan theoretically frees up more than half
a trillion dollars that U.S.based tech companies have
stashed overseas. It is a considerable sum—the nine tech
companies with the biggest
offshore bank accounts are
currently sitting on a combined $632 billion, which is
about 15% of their combined
market cap. That also is
nearly half of what Moody’s
estimates will be the total
offshore cash pile of U.S.based nonfinancial companies by the end of this year.
Money to burn, in other
words. But despite fantasies
that such a windfall will fuel
a boom in merger activity,
the reality will likely prove
far less exciting. Big tech
companies, as it turns out,
haven’t really needed the
money.
Companies already inclined to deal making haven’t
been constrained by the
Facebook
12.9
Intel
10.0
Amazon
7.8
THE WALL STREET JOURNAL.
Source: the companies
growing pile of cash trapped
offshore. Low interest rates
and strong cash flows have
provided plenty of fuel to
date.
Microsoft, with $132 billion overseas, didn’t wait for
a tax break before its $26
billion purchase of LinkedIn
last year. Qualcomm has already committed its nearly
$30 billion offshore pile to
its planned pickup of NXP
Semiconductors. And internet giants Amazon.com,
Facebook and Google parent
Alphabet Inc. still enjoy
strong growth in their core
businesses and are unlikely
to be rewarded by investors
for big-ticket mergers and
acquisitions
Exceptions could be Cisco
Systems and Oracle, which
have been fairly acquisitive
but still have large legacy
businesses that are a drag on
growth. The two have $69
billion and $59 billion offshore, respectively. But they
would be shopping in an inflated market. The S&P 500
Software & Services Group is
up 38% this year, and many
of the cloud-computing companies the two might consider buying have surged
more than 50%.
Most of the freed-up cash
will most likely go back to
shareholders. Following a tax
holiday in 2004, U.S. companies put 94 cents of every
new dollar toward buybacks
or dividends, according to a
study National Bureau of
Economic Research.
And then there is Apple
Inc., which alone sits on
more than one-third of tech’s
offshore cash pile. The
iPhone maker has never had
a taste for big deals, but it
has managed to run up $116
billion in debt over the past
four years, essentially borrowing against its cash
trapped offshore to pay for
its buybacks and dividends.
The company is likely use at
least some of its repatriated
funds to pay down that debt.
Not the most exciting way to
use a Christmas bonus.
—Dan Gallagher
OVERHEARD
What’s in a name? In this
euphoric stock market, quite
a bit it seems.
Furniture design company
Nova LifeStyle became the
latest obscure company to
announce a new subsidiary
evocative of bitcoin mania. It
is called I Design Blockchain
Technology Inc., which the
company says is aimed at
boosting sales of its current
products. Nova LifeStyle,
which had a $61 million market value as of Tuesday, said
in a release that the new initiative is “supported by its
enormous existing worldwide
consumer base through the
company’s 25-year operating
history.”
One might be tempted to
think blockchain and furniture
design don’t necessarily go
together, and the company
didn’t include any specific financial details in its press release. But investors seem to
disagree. Nova LifeStyle
shares were up by 9% on
Wednesday after surging by
over 20% in premarket trading after the exciting news
broke.
Stitch Fix Shareholders Are Singing the Blue Apron Blues
The market is quick to
draw lessons from past mistakes. Sometimes, however,
it learns the wrong ones.
That may be the problem
plaguing Stitch Fix, the personalized online styling service that reported its first
earnings as a public company Tuesday. The startup,
whose shares had risen 65%
since its IPO last month, reported earnings of 4 cents a
share and revenue of $296
million—nipping analysts’
expectations of earnings of 3
cents a share and revenue of
$295 million.
That marks the third
quarter in a row in which the
company has logged 25%
sales growth. It also said its
Getting Their Fix
Number of Stitch Fix active clients
2.0 million
1.5
1.0
0.5
0
FY2014
’15
’16
’17
Note: Active clients defined as people who
reviewed an order in the preceding 12
months; fiscal year ends July 31.
active clients grew to 2.4
million, a 30% increase from
a year ago. So why did its
shares fall nearly 10%
Wednesday?
“There’s nothing funny in
the numbers. It’s not like
they had material deceleration in growth rate or customer base,” says analyst
Mark Mahaney of RBC Capital Markets. “I’m surprised.”
The explanation may have
to do with Blue Apron, the
meal kit service that had a
dismal IPO in June and
whose stock has continued to
plunge as it loses customers.
That disappointment seems
to have made investors wary
of being too optimistic about
Stitch Fix, the most recent
consumer-subscription offering to follow on the public
markets. They worry that the
market for the service may
be limited, as Blue Apron’s
has turned out to be, and
that it could be strangled by
to expectations that the central bank will raise rates.
The recent climb in the 10year yield is “clearly tax policy
having an impact,” said Kathy
Jones, chief fixed-income strategist at Charles Schwab Corp.
“There were really doubts that
this would happen. Until the
votes were actually assured
and there was a little more
clarity about what was in the
bill, people would hold off.”
Any rise in yields following
the plan’s passage may be
muted, however, as the economy is already in the ninth
year of an expansion, making
it one of the longest in U.S.
history, some analysts said.
“It’s very unusual to come
into the latter stages of the
business cycle and then all of
a sudden take off” in terms of
growth, said Wells Fargo’s Mr.
Rusnak. The potential for
higher yields is “somewhat
limited by where we are in the
business cycle.”
The 10-year yield remains
below its 2017 high of 2.609%
hit in March, and some investors said it might not immediately return to that level.
Some have speculated that
if policy makers perceive a
threat of faster inflation stemming from the tax plan, they
could accelerate the pace of
rate increases. Fed officials at
their December meeting left
unchanged forecasts for three
increases in 2018 and two
more the following year.
Yields on TIPS indicate that
investors forecast about 1.9% in
average annual inflation over
the next five years. That is up
from 1.7% at the beginning of
the month, though still less
than the Fed’s 2% target. Policy
makers forecast inflation will
reach the target in 2019.
Yet some investors may get
spooked if the yields stay up
near 2.5% or move higher,
which could fuel more selling,
said Thomas Roth, executive
director in the rates trading
group at MUFG Securities
Americas Inc.
ly
.
Treasury prices fell as Congress approved the largest
overhaul of the tax code in
three decades, pushing yields
higher in the latest leg of a
multiday surge that comes after months of relative calm.
The yield on the 10-year
Treasury note settled at
2.497%, compared with 2.464%
on Tuesday, notching its largest four-day advance since
July. The yield, which rises as
bond prices fall, has climbed
in eight of the past 10 sessions
to its highest closing level
since March 17. Falling Treasury prices tend to signal investor confidence in the economic outlook.
The 10-year Treasury yield
rose above 2.4% on Tuesday as
lawmakers advanced the tax
overhaul, breaching a level it
has struggled to cross since
March. It rose to nearly 2.5%
as Congress approved the revamp Wednesday, with some
analysts saying the overhaul
could boost growth and inflation, leading to further selling
that could push yields higher.
Many had predicted that
would happen earlier this year,
amid optimism for a range of
pro-growth proposals from
President Donald Trump ranging from tax cuts to increased
infrastructure spending. The
10-year yield has instead
traded within a relatively narrow range, even as the potential for changes to the tax code
have buoyed U.S. stock indexes
as they hit record after record.
“Growth prospects are
strong and getting stronger,”
said George Rusnak, co-head
of global fixed-income strategy
at the Wells Fargo Investment
Institute. Some of that optimism about the stimulative effects of the tax bill could be
“possibly filtering into inflation” as consumers with more
disposable income push prices
higher by spending more.
Foreign and domestic inves-
The yield on the 10-year Treasury note on Wednesday
notched its biggest four-day climb since July.
co Fo
m rp
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er rs
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BY GUNJAN BANERJI
AND DANIEL KRUGER
Amazon.com.
Enthusiasm for Blue
Apron’s IPO already was
dented by Amazon’s purchase of Whole Foods shortly
before and the stock plunged
nearly 18% following its debut public earnings release
in August. This summer the
e-commerce giant also unveiled “Prime Wardrobe,” a
service that lets subscribers
try on clothes at home and
send them back at no charge.
But Stitch Fix isn’t Blue
Apron. It has proved consistently profitable while Blue
Apron hasn’t. Its customer
base has room for continued
growth as it expands into
menswear, plus sizes, and
lower-priced offerings. Blue
Apron has only one million
customers, with no signs of
growth. Perhaps most important, Stitch Fix is working
with a very different product.
“I’ve always thought what
Blue Apron was doing—fresh
produce delivery—was one of
the more operationally challenging businesses out
there,” says Mr. Mahaney.
“Stitch Fix doesn’t have the
risk of perishable inventory.”
Investors have drawn too
close a parallel between the
two companies. In the process of trying to learn from
Blue Apron’s pitfalls, they
may miss an opportunity
with Stitch Fix.
—Elizabeth Winkler
WSJ.com/Heard
U.K. Bids to
Remain Hub
For Finance
London’s position as Europe’s financial center after
Brexit is under threat. The
Bank of England seeks to
protect its status, but risks
leaving itself at the back of
the queue when banks get
into trouble.
The BOE said Wednesday
it will give big European investment and commercial
banks an easy way to stay in
London once Britain quits
the EU, offering them the
same terms that big U.S. and
Swiss banks get. That means
being able to operate from a
branch rather than a costlier
subsidiary that holds capital
locally.
The finance industry represents 90% of Britain’s trade
surplus in services with the
Continent and provides more
than one-tenth of all U.K. tax
revenue. Currently, London’s
role in Europe relies on a
passporting regime, which
allows any bank in one EU
country to sell products and
services in any other. That is
what lets banks from all over
the world use London as a
base to serve European companies and investors.
That regime ends with
Brexit, and European negotiators say it is unlikely to
ever be replaced by a freetrade deal for services.
But this decision could
store up trouble for later.
The U.S. and EU already are
moving in a different direction by forcing foreign banks
to set up onshore holding
companies that require their
own capital and funding.
This leaves Britain potentially on the losing side if
banks fail, as happened with
Lehman Brothers, when U.K.based assets were sucked
back to the parent in the U.S.
The U.K. will be reliant on
the kindness and cooperation
of overseas regulators.
—Paul J. Davies
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 | Thursday, December 21, 2017
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TRUTH
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