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The Wall Street Journal December 22 2017l

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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.
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WSJ.com
FRIDAY, DECEMBER 22, 2017 ~ VOL. CCLXX NO. 147
* * * * * *
OIL $58.36 À $0.27
GOLD $1,267.30 À $1.20
The Eyes Have It as U.N. Vote Rebukes U.S. on Israel’s Capital
What’s
News
EURO $1.1876
Boeing Is
In Talks
To Buy
Embraer
Business & Finance
oeing is in talks to buy
Brazil’s Embraer, a move
to fortify against Airbus’s efforts to move into the market
for smaller passenger jets. A1
B
Boeing Co. is in takeover
talks with Brazilian aircraft
maker Embraer SA, a move to
fortify the U.S. aerospace giant against recent efforts by
its greatest rival to move into
the market for smaller passenger jets.
Major League Baseball
ousted the head of its digitalmedia business last month
for alleged misconduct. A1
Alphabet said Schmidt
will step down as executive chairman and shift to a
role as technical adviser. B1
China’s HNA is facing
calls on Capitol Hill for increased CFIUS scrutiny of
its U.S. acquisitions. B10
Fannie and Freddie will
retain some earnings as part
of a deal to allow them to buffer against future losses. B6
Bank and energy shares
helped U.S. stocks snap two
days of declines. The Dow
rose 55.64 to 24782.29. B11
Chinese ride-sharing
platform Didi raised $4
billion in fresh funding. B4
World-Wide
Congress passed a stopgap spending bill that keeps
the government funded
through mid-January, avoiding a looming shutdown. A1
McConnell said he was
unlikely to tackle changes to
Social Security or Medicare
next year despite Ryan’s call
to revamp entitlements. A4
AT ODDS: Riyad Mansour, the Palestinian United Nations observer, passed Nikki Haley, U.S. ambassador to the U.N., as the General Assembly
gathered Thursday. After the vote, Ms. Haley said the U.S. had been singled out for attack, while Mr. Mansour said, ‘The U.S. failed miserably.’ A6
ly
.
JPMorgan breached antimoney-laundering rules in
its dealings with 1MDB,
Swiss regulators said. B10
Congress Avoids Shutdown
Stopgap measure to
fund government
into January passes
House and Senate
BY KRISTINA PETERSON
WASHINGTON—Congress
passed a stopgap spending bill
that keeps the government
funded through mid-January,
avoiding a looming shutdown
but punting thorny policy debates into next year.
In a 66-32 vote, the Senate
approved a monthlong spend-
ing bill keeping the government running through Jan. 19.
The bill, which passed the
House earlier Thursday, now
heads to the White House,
where President Donald Trump
was expected to sign it.
The bill marks the latest in a
series of short-term spending
measures Congress has passed
while struggling to hammer
out a broader budget deal.
While the measure would keep
the government open beyond
the expiration of its current
funding at 12:01 a.m. on Saturday, lawmakers were set to
leave Washington without hav-
Alphabet’s Schmidt to Step Down
no
RICHARD BRIAN/REUTERS
ACA enrollments fell from
2016, affected by a shorter
sign-up window and higher
premiums, but the drop was
less than some expected. A3
The move to appoint Mulvaney to the CFPB exposed a
divide between a White House
faction and the Treasury
over the watchdog’s role. A2
A judge dismissed a suit alleging Trump violates the Constitution when his businesses
receive payments from foreign
and state governments. A2
Peru’s president will remain in office after lawmakers
voted against impeaching him
over a scandal tied to construction giant Odebrecht. A10
A man rammed a car into
pedestrians and shoppers in
Melbourne, Australia, injuring at least 18, an act that police said was deliberate. A8
The pope chastised the
Vatican bureaucracy for what
he called a cancer of plotting,
pride and ambition that was
holding back reform. A10
CONTENTS
Business News.. B3,5
Crossword.............. A13
Heard on Street. B12
Life & Arts...... A12-13
Mansion............. M1-10
Markets............. B11-12
Opinion.............. A15-17
Sports....................... A14
Streetwise................. B1
Technology............... B4
U.S. News............. A2-4
Weather................... A13
World News..... A6-10
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
ing resolved stubborn divisions
over issues that could produce
an uglier showdown in January.
Congress is likely to return
next year with just a few weeks
to reach a two-year budget
deal, a reauthorization of the
Children’s Health Insurance
Program and how to handle the
so-called Dreamers, young people living in the U.S. illegally
who were brought here as children.
Bipartisan discussions may
accelerate next year, now that
the GOP rewrite of the tax code
has cleared Congress. Republi-
Eric Schmidt, who helped transform Google into a global behemoth, will
step down as executive chairman in January, the company’s parent said
Thursday. He’ll become a technical adviser and remain on the board. B1
Stock Gifts Are Made
With Great Timing
Major League Baseball
forced out the architect of its
multibillion-dollar digital-media business last month, after
years of troubling workplace
behavior that former baseball
executives were said to be
made aware of at least a decade ago.
Bob Bowman led MLB Advanced Media for 17 years,
building it into a powerhouse
digital platform that made the
otherwise hidebound league
the envy of pro sports. BAMTech, a spinoff of MLB Advanced Media, is now majorityowned by Walt Disney Co.,
INSIDE
When Michael Milken donated $27 million of stock to
charity in September 2013,
the former junk-bond financier’s timing scarcely could
have been better, for tax
purposes.
Twenty-six trading days
later, the shares of K12 Inc.,
an education company in
which he was an early investor, lost 38% of their value in
a single day.
A decade prior, he donated stock in another company he helped seed, LeapFrog Enterprises Inc., shortly
before it fell 25% in one day.
That meant Mr. Milken’s
stock gifts would have been
worth millions of dollars less
if made a few weeks later. So
would have been his potential tax deductions.
Mr. Milken was among
hundreds of people who donated stock to charities near
price peaks or a few weeks
before the stocks tanked, a
Wall Street Journal analysis
of federal data shows. Such
donations occurred more often than chance would dictate, according to researchers interviewed by the
Journal.
Mr. Milken’s timing was
better, in terms of potential
tax deductions, than that of
about 99% of corporate insiders and large shareholders who reported stock gifts
to the Securities and Exchange Commissions over 14
years, the Journal calculated.
(The comparison group included some gifts that didn’t
generate deductions.)
Three business associates
Please see STOCK page A11
Airbus seeks a majority stake in
a Bombardier jetliner program,
while Boeing is in talks to buy
all of Brazil's Embraer.
Estimated revenue for 2017
Boeing
$92.2B
Airbus
McConnell unlikely to tackle
entitlements next year........ A4
$79.5B
Embraer
$5.8B
Bombardier
(aerospace only)
$7.2B
Source: Thomson Reuters
THE WALL STREET JOURNAL.
which paid $2.58 billion to take
control over the last 16 months.
Mr. Bowman was one of the
most influential people in
sports and digital media when
MLB announced his departure
on Nov. 6, saying he had told
Rob Manfred, the league’s commissioner, that he wouldn’t
seek to renew his contract.
Other forces were at work,
people familiar with the situation said. Mr. Bowman verbally
abused a co-worker in October,
prompting Mr. Manfred to push
him out, these people said.
That was preceded by a July
incident in which Mr. Bowman
allegedly shoved an executive
with the group that owns the
Boston Red Sox.
“The culture that started at
BAM was hard working and
driven. At times, it was also inappropriate and I take full responsibility,” Mr. Bowman said
in a statement to The Wall
Street Journal. “This inappropriate behavior reflects my
personal flaws and not someone else’s. This behavior and
my personal behavior were
wrong. To those who felt the
sting of my behavior, I am truly
sorry. To my family, friends
and business colleagues who
have been steadfastly supportive of me, and whom I have
embarrassed, I apologize.”
Mr. Bowman’s departure
was the end result of a yearsPlease see MLB page A2
HQ Trivia App Puts On-Demand
Generation on a Strict Schedule
i
i
i
The online game show tethers its many
fans to their phones at 3 p.m. and 9 p.m.
Milken, others avoid price drops and hit highs
BY ANDREA FULLER
High Fliers
can leaders have been laser-focused on sewing down votes
for the tax bill, unwilling to let
any other negotiations cost
them a GOP vote. And Democrats have been under pressure
to resist Mr. Trump and Republicans as the tax bill advanced. Still, next month will
be treacherous.
“January’s going to be a
bear,” said Rep. Mario DiazBalart (R., Fla.). “This is a process that doesn’t ever seem to
Please see GOP page A4
Baseball Executive Ousted
After Alleged Misconduct
BY RACHEL BACHMAN
AND BRIAN COSTA
The U.N. voted overwhelmingly for a resolution
effectively rebuking Trump
for recognizing Jerusalem
as Israel’s capital. A6
Catalonia’s separatist
parties won a majority in a
pivotal vote for a new assembly for the Spanish region. A6
A deal would hand Boeing
the largest maker of so-called
regional jets that serve
smaller airline routes, as well
as access to Embraer’s well-regarded engineering workforce.
It is the latest salvo in the
global competition between
Boeing and Airbus SE, which
recently announced a similar
deal to take a majority stake
in a jetliner program run by
Canada’s Bombardier Inc., the
second-largest maker of regional jets.
Boeing and Embraer confirmed the discussions Thursday after a Wall Street Journal
report on the talks. The comPlease see BOEING page A8
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Georgia officials voted
to continue building two
half-finished Georgia
Power nuclear reactors. B2
n-
The timing of AT&T’s
pledge to give over 200,000
workers bonuses once Trump
signs the tax overhaul may
have saved it $28 million. B1
By Dana Mattioli,
Dana Cimilluca
and Liz Hoffman
JUSTIN LANE/EPA-EFE/REX/SHUTTERSTOCK
Spotify is expected to
receive SEC approval to
move forward with a direct
listing on the NYSE. B1
Universal licensed its
music to Facebook in a deal
that paves the way for a
new revenue stream. B4
YEN 113.33
LUXURY WISH
LIST FOR
YOUR HOME
MANSION, M1
THE SHOPPING
MALL’S LAST
GASP
BUSINESS NEWS, B5
BY JOHN JURGENSEN
When Ben Goldthwaite isn’t
in class, the 16-year-old sophomore usually bounces between
YouTube, Instagram,
Twitch, Netflix and
other on-demand distractions. A new pastime, though, has him
on a schedule.
On a recent night,
Ben cut short a meeting with a teacher to
join a dozen boys, all
armed with iPhones, to
play HQ Trivia, a Scott
twice-daily online quiz
show with cash prizes.
In a throwback to the days
when popular network shows
bound viewers to their televisions, HQ Trivia has hooked
hundreds of thousands of fans
to click on the iPhone app at 3
p.m. and 9 p.m. On Sunday
night, the game drew 680,000
players, up from 440,000 a
week earlier, its previous record.
Some offices fall silent as
employees huddle
to play during the
afternoon session.
At night, families
pool their knowledge. Quinne Myers, 29, of Brooklyn
said her boyfriend
once halted a romantic moment at
8:59 p.m. for HQ
Rogowsky Trivia.
A world where
everything is on demand is
under attack from an oxymoron: the event-based internet.
“It wouldn’t be popular if
you could just play any time
you wanted,” said Ben, who attends a Massachusetts boardPlease see TRIVIA page A4
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 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
* ***
U.S. NEWS
CFPB Job Pits White House vs. Treasury
BY YUKA HAYASHI
AND KATE DAVIDSON
WASHINGTON—The Trump
administration’s move to put
its budget chief in charge of the
Consumer Financial Protection
Bureau exposed a divide between a White House faction
and the Treasury Department
over just what the role of the
consumer watchdog should be.
The installation of Mick
Mulvaney, head of the Office of
Management and Budget, as
the CFPB’s interim director was
a win for conservatives who favor dismantling much of the
regulator, which was created by
President Barack Obama and
congressional Democrats in the
wake of the financial crisis to
help consumers harmed by
problems involving mortgages
and other consumer-finance
products.
Republican critics say the
CFPB has increased compliance
costs and reduced credit availability for those it was created
to protect.
Many in the dismantling
camp, including Mr. Mulvaney,
a former congressman, have
spent years trying to block the
CFPB’s agenda under Richard
u In October, the CFPB issued
a payday-lending rule requiring
lenders to determine whether a
borrower could afford to repay
a loan before extending credit.
u The agency has
implemented a number of new
disclosure requirements for
mortgage lenders, including
changes to the Home
Mortgage Disclosure Act that
take effect in January.
u Early in its history, the
agency created a public
database of consumer
complaints and company
responses related to financial
products.
u The CFPB has gone after
dozens of debt collectors over
alleged fraud and deceptive
Mr. Calabria didn’t respond
to requests to comment.
A group of mortgage-industry allies led by Lewis Ranieri, a New York financier
who helped invent mortgagebacked securities, and Michael Calhoun, who leads the
Center for Responsible Lending, a liberal consumer group,
tried to persuade Mr.
Mnuchin to get behind its
pick, Eric Kaplan, director of
housing finance at the Milken
Institute, a centrist Washington think tank, said people familiar with the matter. Mr.
Mnuchin turned the group
down.
“Treasury is working with
the White House to secure a
permanent director who will
bring much-needed accountability, transparency and balance to the CFPB,” a Treasury
spokeswoman said.
Crosscurrents over who to
select stemmed in part from
long-brewing mistrust between Treasury and some
White House officials, including at the White House’s National Economic Council, said
people familiar with the matter. Mr. Calabria has voiced
skepticism about policy and
personnel leanings of Treasury officials, the people said,
viewing them as insufficiently
conservative.
—Lalita Clozel, Eli Stokols
and Nick Timiraos
contributed to this article.
u The CFPB has also required
mortgage lenders to make sure
borrowers have the ability to
repay the loans. As a result,
lenders began to make most of
their loans as ‘qualified
mortgages’ meeting certain
criteria.
Interim director Mick Mulvaney
controlled hiring decisions and
weren’t aware of the extent of
the Treasury’s search efforts.
A person close to Mr.
Mnuchin said he understood
the White House was leading
the process and supported its
move to appoint Mr. Mulvaney.
Backing the White House’s
move were Republicans associated with Vice President Mike
Pence, including his economic
adviser Mark Calabria, a former financial-regulation expert
at the libertarian Cato Institute, people familiar with the
matter said. Also on board was
Rep. Jeb Hensarling (R., Texas),
who has spearheaded Congress’s attack on the CFPB.
Mr. Mnuchin’s camp, including Craig Phillips, a top Treasury adviser and former BlackRock Inc. executive who spent
decades selling mortgagebacked securities, was seeking
a candidate who would take an
incremental approach to reducing regulatory burdens,
people familiar with the matter said.
“We have never said get rid
of the CFPB,” said Richard
Hunt, president of the Consumer Bankers Association, a
trade group. “We need consumer protection, and banks
have already invested billions
to comply with CFPB rules.”
Early in the process, Mr.
Mnuchin’s top choice was
Brian Brooks, a former vice
chairman of OneWest Bank,
the lender Mr. Mnuchin bought
and turned around after the financial crisis, said people familiar with the matter. Mr.
Brooks declined to comment.
Some in the mortgage industry were concerned the
Trump administration might
pick someone who would undo
postcrisis rules that guide the
mortgage lending and securitization businesses.
Mortgage officials were
wary of the influence of Mr.
Calabria, who last year called
mortgage securitization “a
false god that failed us.”
‘This inappropriate behavior
reflects my personal flaws and
not someone else’s.’
Bob Bowman
no
n-
vate conversations he has had
with former employees.”
After the shoving incident at
the All-Star Game, according to
a person familiar with the matter, Mr. Manfred ran into Mr.
DuPuy at a country club to
which they both belong and
asked if he previously had any
concerns about Mr. Bowman’s
behavior. According to this person, Mr. DuPuy replied that
there had “been some issues”
about 10 years ago.
Mr. Manfred said he wasn’t
aware of any alleged relationships Mr. Bowman had with coworkers.
During the league’s All-Star
Game week in July in Miami,
Mr. Bowman allegedly shoved
an employee of the Red Sox’s
parent company.
Rumors of the incident got
back to Mr. Manfred. Weeks
later, he asked Mr. Bowman
about the incident, according
to a person familiar with the
situation. Mr. Manfred told Mr.
Bowman that if he did something like that again, he would
fire him, this person said.
During the week of the AllStar Game in July 2016 in San
Diego, MLB Advanced Media
hosted a party at which women
were allegedly hired to entertain attendees, according to
two people who attended.
These people said the women,
who arrived at the party by
bus, were widely believed by
attendees to be escorts. Some
of them were heard encouraging attendees to leave to have
sex quickly so that they could
return to solicit another attendee before the party was
over, according to one person
who was there.
Mr. Manfred said he had no
knowledge of the alleged escorts. But he felt MLB Advanced Media’s parties were in-
THE WALL STREET JOURNAL
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gest success stories. The company operates MLB’s website
and popular mobile app as well
the league’s online streaming
service, MLB.tv.
Last year, Walt Disney Co.
spent $1 billion on a 33% stake
of MLB Advanced Media’s
spinoff company, a content-distribution system called BAMTech. In August, Disney spent
another $1.58 billion to raise
its share to 75%.
On Nov. 6, three months after that sale, MLB issued news
release saying Mr. Bowman
would leave the organization.
With the recent sale, “it is an
ideal time for new leadership,”
Mr. Bowman said in the news
release.
“I thank Bob for a job well
done and wish him the very
best,” Mr. Manfred said in the
release.
—Jared Diamond
contributed to this article.
Suit Over
Trump’s
Businesses
Dismissed
BY JOE PALAZZOLO
A federal judge in Manhattan threw out a lawsuit that
alleged President Donald
Trump violates the U.S. Constitution when his businesses
receive payments from foreign
and state governments.
A government watchdog
group and business competitors
of Mr. Trump who brought the
lawsuit failed to show that the
president’s alleged violations
caused them harm or that their
alleged injuries fell within “the
zone of interests” the U.S. Constitution’s built-in anticorruption provisions seek to protect,
U.S. District Judge George Daniels wrote in a 29-page opinion.
Judge Daniels’s decision is
likely to receive a close reading from federal judges presiding over two similar lawsuits
filed by Democrats in Congress and the attorneys general of the District of Columbia and Maryland.
The ruling left unanswered
the question at the core of the
cases: whether government
payments to businesses owned
by Mr. Trump puts him on the
wrong side of the U.S. Constitution’s foreign and domestic
emoluments clauses.
Judge Daniels called Congress “the appropriate body”
to address that question.
The foreign clause bars officeholders from accepting “any
present, emolument, office, or
title, of any kind whatever”
from foreign governments,
without the consent of Congress. The domestic clause prevents the president from receiving compensation from state
and federal governments other
than a salary set by Congress.
U.S. WATCH
CORRECTIONS AMPLIFICATIONS
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
appropriate and, after the one
in 2016, he said, he adopted a
policy that MLB Advanced Media wouldn’t host any parties
independent of the league office.
In its early days of the early
2000s, Mr. Bowman led a fastgrowing company made up
largely of young people. He
built an organization that was
isolated from the main MLB infrastructure. He developed a
reputation as a brilliant but
mercurial boss.
In the early 2000s, Mr. Bowman was standing with two female subordinates in BAM’s offices, a person familiar with
Mr. Bowman said. To the
women’s faces and within earshot of other employees, Mr.
Bowman referred to the women
as “c—s.”
Under Mr. Bowman’s leadership, MLB Advanced Media
grew into one of baseball’s big-
ECONOMY
SLENDER MAN CASE
Third-Quarter GDP
Lowered to 3.2%
Girl Is Sentenced
To Mental Hospital
U.S. output grew at a 3.2%
annual rate in the third quarter,
the government said Thursday, a
touch below a prior estimate but
pointing to economic momentum
ahead of a major tax cut.
The Commerce Department
released the new figure as part
of a routine revision of data on
quarterly economic growth. The
agency previously reported that
gross domestic product, the
broadest sum of goods and services produced across the economy, expanded at a 3.3% rate
from July through September.
Figures showed consumer
spending during the quarter was
slightly weaker than previously
One of two Wisconsin girls
who tried to kill a classmate in
2014 to win favor with a fictional horror character named
Slender Man was sentenced
Thursday to 25 years in a mental hospital, the maximum punishment possible.
Anissa Weier, 16 years old,
pleaded guilty in August to being a party to attempted second-degree intentional homicide,
but she claimed she wasn’t responsible for her actions because she was mentally ill. In
September, a jury agreed. She
apologized in brief comments
before her sentencing.
—Associated Press
JAY JANNER/ASSOCIATED PRESS
JOHN MINCHILLO/ASSOCIATED PRESS
Continued from Page One
long divide between baseball’s
staid Park Avenue headquarters
and the younger, looser MLB
Advanced Media office 2 miles
away that Mr. Bowman ran like
a fiefdom.
“I would say that [the October] incident was the culmination of a variety of issues that
had gone on over a period of
time, and it precipitated a conversation in which Bob and I
agreed that the best thing for
him to do was to leave,” Mr.
Manfred said in an interview.
Mr. Bowman’s departure
capped a tenure riddled with
concerns about his conduct.
While at MLB Advanced Media, Mr. Bowman engaged in a
pattern of behavior that included propositioning female
colleagues, allegedly having
consensual relationships with
subordinate co-workers and
cultivating a culture of partying and heavy drinking with
employees outside the office,
people familiar with the matter
said.
At least 10 years ago, Bob
DuPuy, who was then serving
as MLB’s president and chief
operating officer, was told of
concerns about Mr. Bowman’s
behavior by BAM employees
and raised them with Bud Selig, the league’s commissioner
at the time, according to people familiar with the situation.
Mr. DuPuy declined to comment and referred questions to
MLB.
But Mr. Bowman remained
with the company.
“What he gave in heartburn
was always overshadowed by
what he gave in money,” said a
former high-ranking baseball
official. This person said Mr.
DuPuy raised concerns about
Mr. Bowman but, “Bud had no
interest in dealing with it.”
Rich Levin, a spokesman for
Mr. Selig, released a statement
saying, “It is highly inappropriate for the commissioner emeritus to publicly discuss any pri-
practices, and has proposed
new rules to regulate the
industry.
co Fo
m rp
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er rs
ci on
al a
us l,
e
on
MLB
Agency Launched
Many Initiatives
ly
.
Cordray, an Obama appointee
who stepped down after
Thanksgiving. Mr. Mulvaney
has described the CFPB as “one
of the most offensive concepts
in government.”
Mr. Mulvaney declined to
comment for this article.
His appointment, until a
permanent successor can be
found, was a setback for some
financial companies. While they
hoped for a less-aggressive regulator than Mr. Cordray, companies in certain industries still
wanted the watchdog to have
some regulatory teeth, according to people familiar with the
matter.
Companies have invested
billions of dollars in complying
with the agency’s rules since it
began operating six years ago.
What’s more, many in the
mortgage and financial-technology industries see some
rules as necessary to help ensure a stable market for securities such as those formed when
mortgages are packaged and
sold off.
They saw an ally in Treasury
Secretary Steven Mnuchin, a
former mortgage banker, who
interviewed several candidates
to run the CFPB, including candidates recommended by the financial industry.
The White House, however,
was conducting its own search.
While the administration consulted with the Treasury Department, White House officials
JOSHUA ROBERTS/REUTERS
Mnuchin and some
finance firms sought a
leader less critical of
consumer watchdog
ON THIN ICE: A child falls while ice skating in downtown Austin,
Texas, on Thursday. The temperature was 78 degrees at the
time, and the ice was beginning to melt.
thought, leading to the downward revision in growth.
Despite the lower estimate,
the third quarter ranked as the
economy’s best since the first
three months of 2015 when it
also notched 3.2% growth.
Consumer spending remained
solid overall, as did business investment, and exports continued
to grow.
—Josh Mitchell
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.
Friday, December 22, 2017 | A3
* * * *
U.S. NEWS
Vice
President
Surprises
Troops
BY JOE PALAZZOLO
AND SARAH NASSAUER
given 72 hours to decide
whether to enter the program.
The video describes a six-toeight-hour online course that
promises to explain “why you
make decisions that are harmful or illegal” and teach “life
skills.”
If a suspect declines to pay
for the program—$400 up
front or $500 later—the retailer may choose to pursue
Wal-Mart stopped
telling suspects to pay
for video course or
face potential arrest.
n-
“other legal rights to seek restitution and resolve this
crime,” the video states.
About 90% of suspects
agree to enroll, according to
court documents filed in the
California case. Some retailers
used to receive a portion of
the fee, but the company began phasing out the payments
in 2015, the documents show.
Turning Point, for its part,
charges offenders $350 for an
online educational program
owned by the National Association for Shoplifting Prevention, its partner, a nonprofit
group that has provided services for court-diversion programs for decades. Suspects
also must make restitution to
the retailers, covering time
spent processing the suspect
and any damage to the stolen
goods, bringing their total
costs to $400 to $425, said
Lohra Miller, who founded
Turning Point in 2012 after
working with Mr. Huntsman at
Corrective Education.
Retailers usually receive
about $50 to $75 in restitution
from each offender diverted
into the Crime Accountability
Partnership Program, the formal name for the program offered by NASP and Turning
Point, Ms. Miller said; retailers
pay nothing to have the programs in their stores.
Rep. John Lesch, a Minnesota state lawmaker who introduced legislation this year that
would outlaw private shoplifting diversion programs, said
retailers need to bear more of
their own security costs, but
they shouldn’t create a parallel
justice system, where the rules
of evidence and due process
don’t apply.
BOYZELL HOSEY/TAMPA BAY TIMES/ASSOCIATED PRESS
no
Until recently, a first-time
shoplifter caught in any of
about 2,000 Wal-Mart stores
got a choice: pay hundreds of
dollars, complete an education
program and all will be forgiven—or don’t and potentially
face prosecution.
Corrective Education Co.
and Turning Point Justice,
Utah-based companies that sell
the programs, have emerged as
alternatives to the often-overtaxed criminal justice system.
They spare law-enforcement
resources and hold offenders
accountable without leaving
the scar of a criminal conviction, supporters say.
But Wal-Mart Stores Inc.,
one of the biggest clients of
Turning Point and Corrective
Education, suspended the programs this month as more local officials questioned the legality of asking people for
money under threat of criminal sanctions, though it said it
found the programs effective
at reducing shoplifting and
calls to police.
The move followed a ruling
from a California court in August finding that Corrective
Education’s program violates
state extortion laws.
Although the programs have
reduced Wal-Mart’s calls to police and likely curbed the number of repeat offenders, “it’s
not welcome everywhere and I
want to understand that better,” said Joe Schrauder, the
retailer’s new vice president of
asset protection and safety.
“We want to make sure we are
partnering with local government.”
Harvard Business School
graduates Darrell Huntsman
and Brian Ashton and others
launched Corrective Education
in 2010. Mr. Huntsman said the
idea came from a story he and
Mr. Ashton heard from a mutual friend who ran the lossprevention department at a
sporting goods store.
A recently promoted soldier
had been caught trying to steal
a fishing lure. The soldier’s
mother pleaded with the store
not to report her son to police,
saying a criminal charge could
derail his military career.
“I thought the final result
would be, ‘So we decided to let
him go,’ ” Mr. Huntsman recalled. But the store called the
police, Mr. Huntsman said. “If
we let him go, we have to let
everyone go,” Mr. Huntsman
recalled his friend telling him.
“And if we let everyone go,
then we become a target for
shoplifters.”
Tens of thousands of firsttime shoplifting suspects have
paid for the educations programs, executives of Turning
Point and Corrective Education
said, involving retailers such
as Target Corp., Bloomingdale’s, Burlington Coat Factory and Goodwill Industries.
Shoplifting suspects at
stores that use Corrective Education are shown a video and
ly
.
Sign-Ups
For ACA
Fell by 4%
This Year
co Fo
m rp
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ci on
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Firms Charge Shoplifters
Fee to Avoid Prosecution
©T&CO. 2017
ROBERT BURNS/ASSOCIATED PRESS
HUDDLE: ‘Victory
is closer than ever
before,’ Vice
President Mike
Pence told U.S.
troops in a
surprise visit to
Bagram Air Base
in Afghanistan on
Thursday. Mr.
Pence also met
with Afghan
President Ashraf
Ghani on Thursday
to discuss a newly
announced U.S.
strategy for ending
the 16-year war in
Afghanistan.
‘We’re here to see
this through,’ he
told Mr. Ghani and
Afghan Chief
Executive Abdullah
Abdullah at the
presidential palace
in Kabul. President
Donald Trump
announced the
new Afghan
strategy in August,
boosting resources
and troops in the
country.
A screen showing a feed from a Wal-Mart security camera
mounted above a cosmetics aisle of a St. Petersburg, Fla., store.
Judge Calls Theft
Program ‘Extortion’
San Francisco City Attorney
Dennis Herrera sued Corrective
Education Co. in 2015 after an
investigation by his office revealed evidence of potential
abuse, including allegations that
a security guard at a Goodwill
store in Orange, Calif., threatened
a woman with jail unless she
paid $500 for the education program, a spokesman for Mr. Herrera said.
The woman left the store
without paying for a $2 purse
she had placed on the arm of
her wheelchair while she was
browsing and forgotten about,
according to her lawyer, Chris
Carson. A California court dis-
missed her 2014 claims of abusive debt collection, and she
dropped the suit.
Mr. Herrera’s office sued Corrective Education under different
legal theory: alleged extortion
and false imprisonment.
California Superior Court
Judge Harold Kahn ruled in August that the program “will always be extortion per California
law” as long as it involves payment to the company or retailers. Only a diversion program
“under the aegis of prosecutorial
authorities” can request money
under California law, he wrote.
The company is in discussions with Mr. Herrera’s office to
find a way to do business in the
state while complying with the
judge’s injunction, said Jeff Powers, chief customer acquisition
officer for Corrective Education.
BY ANNA WILDE MATHEWS
The number of consumers
signing up for Affordable Care
Act plans through the federal
HealthCare.gov insurance marketplace declined compared
with last year’s open-enrollment period, affected by challenges including a shorter
sign-up window and some
steep premium increases.
But the 4% falloff, to around
8.8 million sign-ups from
about 9.2 million, was narrower than some insurers and
analysts had projected. In addition, some state exchanges,
including in California, Washington, New York and Minnesota, said sign-ups for ACA
plans so far were up compared
with a year ago.
The enrollment period for
2018 ACA plans ended Dec. 15
for HealthCare.gov, which is
used by 39 states, but a number of insurance marketplaces
operated by states are continuing to let consumers
choose coverage, so a final
tally on 2018 enrollment won’t
be available for several weeks.
Several ACA insurers, including Centene Corp., Health
Care Service Corp. and Medica,
said their own sign-ups appeared on track to meet internal projections. “We’re almost
exactly on our expectations,”
said Steve Ringel, president of
the Ohio market for CareSource, which sells ACA plans
in four states. “It’s playing out
exactly as we had hoped.”
Of the 8.8 million consumers who were signed up for
plans on HealthCare.gov during the federal exchange’s enrollment period, which started
Nov. 1, about 2.4 million were
new consumers, while 6.4 million were returning enrollees,
including people automatically
re-enrolled in plans.
Last year, at the close of the
open enrollment period, which
lasted until the end of January,
around three million new consumers chose plans through
HealthCare.gov, 4.6 million returning enrollees signed up,
and 1.6 million people were
automatically re-enrolled.
The federal Centers for
Medicare and Medicaid Services said the just-released
HealthCare.gov count doesn’t
include people who signed up
for coverage in the early hours
of Dec. 16, or left information
for a callback. Consumers in
regions affected by this year’s
hurricanes can still choose
ACA plans for next year.
Some people who are
signed up never end up paying
their first premium.
Still, analysts said overall
sign-ups appear poised to be
higher than many had expected. “We could go into 2018
with enrollment not decreasing at all, and potentially even
increasing,” said Larry Levitt,
of the Kaiser Family Foundation.
TIFFANY SOLESTE® ROUND
800 843 3269
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TIFFANY.COM
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A4 | Friday, December 22, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Senate GOP leader’s
position is a setback
for Paul Ryan’s push
to reduce spending
Republican, has what amounts
to veto power over next year’s
agenda because he controls the
Senate floor. In the new year, he
will lead a GOP caucus with a
narrow 51-49 margin in the
Senate, where most legislation
requires 60 votes to advance.
By declining to take on entitlements, Mr. McConnell avoids
what would be a tough political
sell for Republicans, and could
spare candidates heavy fire
from Democrats in the 2018
midterm elections.
His comments come as Mr.
Ryan (R., Wis.) has indicated he
would like to make changes to
entitlement programs as part of
a broader drive to rein in government spending. Social Security and Medicare make up a
large and growing part of the
federal budget.
“We’re going to have to get
back next year at entitlement
reform, which is how you tackle
the debt and the deficit,” Mr.
Ryan said on a radio show ear-
BY SIOBHAN HUGHES
AND NATALIE ANDREWS
WASHINGTON—Senate Majority Leader Mitch McConnell
said Thursday he was unlikely
to tackle changes to Social Security or Medicare next year,
potentially extinguishing the
hopes of House Speaker Paul
Ryan to wring savings from the
entitlement programs.
“The only way I would be
willing to go to entitlement reform—I assume that’s a euphemism for things like Social Security and Medicare—would be
if there were Democratic support,” Mr. McConnell said in an
interview with The Wall Street
Journal. “I’ve not heard of any.”
Mr. McConnell, a Kentucky
ANDREW HARNIK/ASSOCIATED PRESS
EntitlementLegislationIsUnlikely
Sen. Mitch McConnell controls
what reaches the Senate floor.
lier this month.
Mr. Ryan’s office didn’t respond to a request for comment
on Thursday.
The focus on government
spending comes after Republi-
cans passed a tax overhaul that
cuts taxes by $1.5 trillion over
10 years and is expected to add
about $1 trillion of deficits, according to the Joint Committee
on Taxation.
Democrats opposed the tax
bill, arguing the benefits flowed
too heavily to the rich and corporations, while also increasing
the federal deficit. Democrats
also worry Republicans will try
to close that deficit by targeting
entitlements.
“We will not use Medicare
and Medicaid and Social Security as an ATM machine for the
Republicans to give tax breaks
to their wealthy friends and
corporate America,” said House
Minority Leader Nancy Pelosi
(D., Calif.) on Thursday.
In Thursday’s interview, Mr.
McConnell assumed a congenial
manner and expressed hopes
for bipartisan legislation in
2018. Whether the Senate tackles some items—like a major infrastructure package—will be
WASHINGTON
WIRE
determined by whether the two
parties can reach agreements.
“The decision about what to
do is probably the most significant thing about being majority
leader,” Mr. McConnell said,
tugging at his coat sleeve to illustrate that while he is often
pulled in many directions, he
decides what happens. “Honestly, it’s hard to control the
outcome of much of anything.
But at least you can decide
what you’re going to do.”
One item Mr. McConnell will
have to address is raising the
country’s borrowing limit. The
Treasury Department will run
out of ways to avoid hitting the
limit in March 2018, according
to the Bipartisan Policy Center.
“When I was the leader of
the minority here, I always
made it clear we were never going to default,” Mr. McConnell
said. “And I don’t think they
will either.”
—Kristina Peterson
contributed to this article.
SANCTIONS
Alleged Abusers
Placed on Black List
co Fo
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J. SCOTT APPLEWHITE/ASSOCIATED PRESS
House Minority Leader Nancy Pelosi, center, on Thursday, seeking protection for ‘Dreamers’ to be added to the spending bill.
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and territories hit by this
year’s devastating storms.
Democrats, who objected to the
bill, said they intended to continue negotiations in January.
Many Democrats argued the
emergency aid doesn’t do
enough for Puerto Rico, compared with its treatment of
Texas and Florida, which have
large House Republican delegations. The bill doesn’t waive a
requirement that Puerto Rico,
which is mired in the largestever U.S. municipal bankruptcy,
match some of the federal
funding for U.S. Army Corps of
Engineers and Federal Emergency Management Agency
projects.
“They don’t even have the
lights on, for God’s sake,” said
Rep. Juan Vargas (D., Calif.).
“There’s no urgency to help
Puerto Rico—and there should
be.”
—Byron Tau
contributed to this article.
Democrats Discuss
Harder Line in 2018
Democrats, unhappy that
fights over immigration and
spending couldn’t be wrapped
up before year’s end, deferred
the resolution of some others
into 2018 in a bid to boost
their leverage next month. Although the spending bill
passed Thursday makes more
money available for states’ children’s health insurance programs, a longer-term reauthorization will be needed next year.
“I don’t think you can resolve half of it now, half of it
in January,” said Sen. Jon Tester (D., Mont.). “It just won’t
happen.”
Democratic leaders indicated that while they had let
immigration slip into January,
when a budget deal is expected
to be reached, they were prepared to take a harder line next
month. Thirty members of the
Senate Democratic caucus
voted against the spending bill
Thursday, many because it
didn’t address immigration or
children’s health insurance.
The spending bill that
cleared Congress on Thursday
would make available $2.85 billion to shore up states’ funding
for the Children’s Health Insurance Program.
The Centers for Medicare
and Medicaid Services have indicated that they will be able
to transfer enough money to
states running low to get them
through the end of January or
early February, a House GOP
aide said. Lawmakers hope to
include a longer-term reauthorization of the program in the
January spending bill.
TRIVIA
Continued from Page One
ing school.
HQ Trivia, which lasts no
more than 15 minutes, is the
only pillar he builds his schedule around, he said, other than
class work, of course.
Like TV’s long-running quiz
show “Jeopardy,” online’s HQ
Trivia features a distinctive
host, Scott Rogowsky, who is a
stand-up comedian, bearded,
lanky and, he said, in his “exceedingly late 20s.” He hosted a
live talk show in New York before auditioning for HQ Trivia.
Stylistically, the app is an
heir of game shows spanning
“The Price Is Right” to the ’90s
videogame “You Don’t Know
Jack.” There’s a backdrop of
day-glow graphics, peppy electronic music and an anxietyproducing countdown clock.
HQ Trivia players face 12
multiple-choice
questions.
Among past queries: Dinosaurs have never been found in
which of these states? Which
feature is not included on a gilet jacket? What made “Reef
Blower” a unique episode of
“SpongeBob SquarePants”?
Players have 10 seconds to
choose one of three answers
by touching a button on their
iPhone screen. When the correct answer is highlighted—
Florida; sleeves; no dialogue—
the game shows how many
players picked correctly and
advance to the next question.
It also shows how many failed.
Players who correctly answer all 12 questions get their
ROBERT YOUSHOCK
n-
san group of senators met with
White House Chief of Staff
John Kelly this week to discuss
elements of a potential January deal.
Conservative House Republicans acknowledged with some
foreboding that the accumulation of issues piling up next
month would likely produce
deals that knit together a coalition of mainstream Republicans and Democrats, while cutting out the extremes on both
sides of the aisle.
“I’m not optimistic that
there’ll be a whole lot of conservative wins in the month of
January,” said Rep. Mark
Meadows (R., N.C.), chairman
of the House Freedom Caucus,
a group of about three dozen
of the most conservative House
Republicans.
The Senate didn’t consider a
bill passed by the House Thursday that would authorize $81
billion in disaster aid for states
no
Continued from Page One
get easy.”
In an unusual moment of cohesion, House Republicans produced enough GOP votes to
pass the spending bill on their
own Thursday, though 14 Democrats later joined them once
the tally had crossed the 217vote threshold needed for passage. House Republicans have
often splintered over spending
bills, but passed two this
month, in part buoyed by passage of their tax overhaul this
week.
“The fact that we got tax reform done makes this vote
much easier,” said Rep. Patrick
McHenry (R., N.C.), chief deputy whip for the House Republicans. Normally, “it is difficult
for us to pass a plain vanilla
item or the most conservative”
bill just with GOP votes, he
said.
But that unity may be difficult to maintain in January.
Congressional leaders hope to
reach a two-year agreement
that would set federal spending above limits established in
a 2011 debt-limit fight. Lawmakers have since then passed
several multiyear deals avoiding those spending curbs and
hope to reach a deal in January
boosting spending by $180 billion to $200 billion over two
years, aides said.
GOP leaders have also indicated they hope to reach an
agreement with Democrats and
the White House next month
over how to shield the Dreamers from deportation.
Mr. 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. A biparti-
ly
.
GOP
The U.S. blacklisted 13 individuals it accused of serious human-rights abuse and corruption, including a former Chinese
security official, the son of a top
Russian prosecutor and a billionaire Israeli businessman linked
to the Congo’s “blood diamond”
industry.
The sanctions are the first
under new powers signed into
law late last year by the Obama
administration, and target people
that public-interest groups condemn as notorious human-rights
abusers. President Donald Trump
said the severity of humanrights abuse and graft committed by the individuals “have
reached such scope and gravity
that they threaten the stability
of international political and economic systems.”
The penalties ban the 13 from
entering the U.S., freeze their
U.S.-based assets and complicate
their international finance and
travel because Western banks
and governments keep sanctioned individuals at arm’slength. Other Western nations
have begun implementing similar
sanction lists. In addition to the
13 main alleged offenders, the
U.S. also blacklisted 39 people
and entities affiliated with them.
Treasury Secretary Steven
Mnuchin, whose office levied the
punitive actions, said the U.S.
was “taking a strong stand
against human-rights abuse and
corruption globally.”
—Ian Talley
and Samuel Rubenfeld
Fans count down the minutes remaining until the next HQ Trivia.
names displayed and a cut of
the prize money. A typical
purse is $1,500, which can be
claimed by one winner or divvied up among hundreds.
Robert Youshock, an 18year-old freshman at the University of Colorado Boulder,
said almost anything else on
his smartphone can be ignored
or saved for later. HQ Trivia is
the one appointment he keeps.
“Timewise, nothing else is
really that pressing,” he said.
The game also is a good excuse to knock on the doors of
dorm mates, he said: “It’s either ‘Do you want to get
food?’ or ‘Time for HQ!’ ”
The show is shot in New
York City, using a live-streaming system. Writers and factcheckers curate the game’s
questions that cover pop cul-
ture, tech, history and a dash
of politics.
For now, HQ Trivia produces the game using money
from investors, including lead
backer Lightspeed Venture
Partners. The show launched
in August and took off.
At Ozark Christian College
in Joplin, Mo., the popularity
of HQ Trivia this fall has triggered student mixers and, at
times, clogged the campus WiFi network. Nathan Storms, a
first-year student from Santa
Clarita, Calif., said HQ Trivia
has doubled as a tool for “fitting in” socially.
When he and his HQ Triviamates finish, he said, “We’re
all together anyway, might as
well go get smoothies.”
Ricardo Vázquez, 29, of Miami, was booked for a derma-
WHITE HOUSE
Deputy Chief of Staff
To Leave His Post
Rick Dearborn, one of President Donald Trump’s top aides,
will step down early next year to
pursue private-sector work, officials said, becoming the latest
high-profile departure from the
West Wing in recent weeks.
“Rick loyally served the president for 2½ years and brought
tremendous energy to the White
House staff,” White House Chief
of Staff John Kelly said. “He’s a
super guy and it breaks my
heart to see him leave.”
A deputy chief of staff who
oversaw the White House’s political operation, public outreach
and legislative affairs, Mr. Dearborn will remain at the White
House for the first month or two
of next year, according to people
familiar with the planning.
The White House is bracing
for a raft of departures as the
president hits the one-year mark
in office.
Mr. Dearborn helped set up
the Trump campaign’s Washington office and was executive director of the presidential transition team.
—Michael C. Bender
tologic procedure that overlapped with a recent 3 p.m.
game. He asked his doctor if
he could play while she
worked; he then recruited her
as an ally. “I thought, ‘She got
through medical school, she
can help me win,’” he said.
The doctor pitched in while
stitching him up. He still lost.
At the Chicago headquarters of G2 Crowd—a startup
aggregating user reviews for
business software and services—about seven HQ Trivia
players gather near a whiteboard scrawled with online
traffic statistics. One person, a
recent winner, collected $2.15
in his PayPal account.
On a day, though, everyone
at G2 Crowd was eliminated
by question nine: Who was introduced to the universe in
TV’s “The Star Wars Holiday
Special”? (Boba Fett)
Before swiveling back to
their cubicles, members of the
informal G2 quiz team debated
how quickly the HQ Trivia fad
would fade.
The app has shown growing
pains. Glitches cause game delays and video lags annoy
players. It has already
spawned at least one imitator:
The Q launched this month
with a nearly identical format.
Some at G2 Crowd argued
that with a few commercial
breaks and sponsors, HQ
Trivia could evolve into a familiar form of tune-in entertainment.
“I can see this being turned
into a half-hour game show on
prime-time television,” said
Chuck Cotterman, a 34-yearold social-media specialist.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
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Friday, December 22, 2017 | A5
RALPHLAURENWATCHES.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.
A6 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
* ***
WORLD NEWS
U.N. Rebukes U.S. for Jerusalem Move
General Assembly votes
overwhelmingly for
resolution despite
threats from Trump
The voting results on the resolution, strongly opposed by Washington, are displayed at the U.N. General Assembly on Thursday.
Many U.N. diplomats said
Thursday that while they valued their alliance with the
U.S., their own longstanding
policies on the status of Jerusalem are in line with international law and U.N. resolutions
that don’t recognize the city
as the capital of Israel in the
absence of a peace deal.
Turkey’s Foreign Minister
Mevlut Cavusoglu denounced
the approach taken by Mr.
Trump and Ms. Haley, who
said in an email to representatives of more than 180 countries a day earlier that the U.S.
would take down the names of
those who vote against it.
“This is bullying. It is unethical. The votes and dignity
of member states are not for
sale,” Mr. Cavusoglu said, adding it was unacceptable for a
member state to “threaten”
other member states.
The Palestinian observer to
the U.N., Riyad Mansour, said
the vote reflected the strong
international disagreement
with the U.S. stance.
“[The U.S.] made this about
themselves and not about Is-
ly
.
again make the world’s largest
contribution to the United Nations,” she said, appearing angry and leaving the chamber
after speaking.
It remained unclear immediately after the vote precisely
what the U.S. would do in retaliation for the vote. Neither
Ms. Haley nor the White House
spelled out specific responses.
co Fo
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UNITED
NATIONS—The
United Nations General Assembly voted overwhelmingly
Thursday for a resolution effectively rebuking U.S. President Donald Trump for recognizing the disputed city of
Jerusalem as Israel’s capital
and pledging to move the U.S.
embassy there.
The vote came despite
threats by Mr. Trump and U.S.
Ambassador Nikki Haley that
the U.S. would take punitive
measures, such as reducing
foreign aid and cutting contributions to the U.N., against
countries voting in favor of
the resolution.
The General Assembly resolution didn’t explicitly refer to
the U.S., instead asserting that
unilateral decisions such as
Mr. Trump’s have no legal effect and must be rescinded. In
the vote, 128 countries voted
in favor and 9 against, with 35
abstaining.
“The United States will remember this day in which it
was singled out for attack in
the General Assembly for the
very act of exercising our right
as a sovereign nation,” Ms. Haley said during the debate,
adding Mr. Trump’s decision
to move the embassy wouldn’t
be affected.
“We will remember it when
we are called upon to once
SPENCER PLATT/GETTY IMAGES
BY FARNAZ FASSIHI
rael, and most countries did
not cave to their blackmail,”
he said. “The U.S. failed miserably.”
In her comments, Ms. Haley
emphasized the U.S. decision
on the embassy location, saying it didn’t represent a U.S.
prejudgment on negotiations
over the status of Jerusalem.
She didn’t mention Mr.
Trump’s designation of Jerusalem as Israel’s capital, which
other countries have called a
recognition of Israel’s claims
over the contested city.
Israel considers Jerusalem
its capital, while the Palestinians claim East Jerusalem as
their capital.
The General Assembly session was requested by a group
of countries including Egypt,
which sponsored a similar resolution at the U.N. Security
Council that garnered 14 votes
and was vetoed by the U.S.
The resolution demands
that “all states comply with
Security Council resolutions
regarding the holy city of Jerusalem, and not recognize
any actions or measures contrary to those resolutions.”
Countries that joined the
U.S. and Israel in voting
against the resolution included
Guatemala, Honduras, Marshall Islands, Micronesia,
Naru, Togo and Palau.
Canada was among the abstentions, as were Hungary
and Czech Republic, breaking
from the vote of other European Union member states.
Canada said in abstaining it
was opposing what it said was
the resolution’s one-sided language.
Catalonia’s Separatists Win Majority in Assembly
Catalonia's separatist parties won a majority of seats for a new
assembly, although they face hurdles to form a governing coalition.
SEATS/SHARE OF VOTE WON BY EACH PARTY
68 SEATS NEEDED FOR MAJORITY
PRO-INDEPENDENCE PARTIES
70 seats, 47.5%
PRO-UNION PARTIES
57 seats, 43.5%
Catalonia in Common- We Can*
Popular Unity Candidacy
Popular Party
Republican Left
of Catalonia
Together for
Catalonia
Socialist Party
of Catalonia
4 8 3
32
17
ALBERT GEA/REUTERS
Ciudadanos
37
34 seats
135
SEATS TOTAL
*Party supports an authorized independence referendum
Note: With 99.8% of votes counted
Source: Catalan government
to achieve independence mean
they now face hurdles and
drawn-out negotiations to
form a pro-independence government, opening a period of
uncertainty over relations between Catalonia and Madrid.
no
BARCELONA—Catalonia’s
separatist parties won a majority in a pivotal vote on
Thursday for a new assembly,
an outcome that keeps alive
the threat of secession by the
wealthy Spanish region.
Three Catalan separatist
parties won 70 seats in the
135-seat regional assembly, a
slight decrease from the last
regional election in 2015 when
they won 72 seats. The separatists roughly maintained
their share of the popular vote
at 47.5% with more than 99%
of the votes counted.
The result is a rebuke to
Spanish Prime Minister Mariano Rajoy, who called the elections when he seized control
of the region in October, wagering that Catalans would
turn against their separatist
leaders amid social and economic upheaval wrought by
their secessionist drive.
But divisions within the secessionist movement over how
Divided Loyalties
n-
BY JEANNETTE NEUMANN
THE WALL STREET JOURNAL.
Catalonia’s economy, which
represents one-fifth of Spain’s
annual economic output, also
could continue to suffer if the
prospect of fresh turbulence
spooks consumers and investors. Unemployment in Catalo-
Relieve Back Pain
Feel tension melt away in
the zero gravity position!
BRUSSELS—Britain’s looming exit from the European
Union has freed the remaining
members to deepen military cooperation through a new
agreement that will sideline
the U.K. But the
ANALYSIS new EU defense
club may discover before long
that it needs the muscle of Europe’s top military power more
than members currently think.
The U.K. for years stymied
EU defense projects, worried
they would duplicate work of
the North Atlantic Treaty Organization. After Britain’s June
2016 Brexit vote, the EU began
advancing a new plan that signaled determination to deepen
links.
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nia recently has nudged
higher, retails sales have fallen
and tourist flows have
dropped. Together for Catalonia, the party led by Carles
Puigdemont, the former head
of the Catalan region, was—by
a hair—the most-voted pro-independence party, a result that
his supporters see as a vindication for the leader of the secessionist movement.
Mr. Puigdemont fled to
Brussels after Madrid ousted
Brexit Leads EU to Circle Defense Wagons
BY LAURENCE NORMAN
AND JULIAN E. BARNES
SIT LIKE AN ASTRONAUT
People at the Catalan National Assembly toasted the vote results.
him, and Spanish judges issued
an arrest warrant as prosecutors sought him on charges of
rebellion, sedition and misuse
of public funds. He has campaigned while in self-imposed
exile and continues to refer to
himself as the “legitimate”
head of Catalonia.
“Rajoy and his allies have lost
and have received a slap in the
face from Catalans,” Mr. Puigdemont said in televised remarks
from Brussels. “The Catalan government needs to return from
exile,” he added, without clarifying when that might happen.
The three pro-union parties
trailed behind the secessionist
tickets, winning 43.5% of the
vote and 57 seats, underscoring the deep rift within Catalan society over independence.
Ciudadanos, a pro-business
party that fiercely opposes independence for Catalonia, won
more votes than any other
party, picking up more than
one-quarter of the vote.
—Marc Navarro González
contributed to this article.
U leaders last week formally approved launching the Permanent
Structured Cooperation, or
Pesco, with 25 of the EU’s 27
remaining countries signing up
to increased defense spending.
They committed to 17 new defense projects and eventually
improving the bloc’s ability to
project power in hot spots
near Europe.
The EU’s resoluteness has
some in the U.K. worried their
defense industry will be shut
out of an expanding defense
market. EU leaders have made
clear that money being allocated for projects—potentially
Big Spender
The U.K.'s defense budget is the biggest in Europe, and the country
spends a big chunk of it on military equipment. Britian's departure
from the EU will create a large hole in its defense capability.
Estimated share of 2017 defense budget spent on equipment
24%
France
22%
U.K.
21%
Italy
Germany
U.S.
Source: NATO
€500 billion ($593 billion) annually from 2020—won’t be
lavished on defense companies
based outside the bloc.
“Pesco is for EU member
states, very clearly,” said Jorge
Domecq, chief executive of the
EU’s European Defense Agency.
How nonmembers like Britain after Brexit will interface
with Pesco remains uncertain. Its rules allow outsiders
to participate in specific projects if they bring “substantial
added value.” Britain has been
told it could be invited to join
projects in exceptional cases,
including efforts to boost the
bloc’s military research.
B
ritish military assets and
personnel have long
played a critical part in
EU military and civilian operations and there are doubts how
successful Europe’s new defense
plans will be without British ca-
14%
29%
THE WALL STREET JOURNAL.
pabilities and know-how.
Britain may continue consulting with the EU on its most
powerful foreign-policy tool—
sanctions decisions—but after
Brexit the U.K. will have no EU
vote on that either.
The U.K. will continue to
have close bilateral defense
ties with many European countries, including eastern and
Baltic states, which depend in
part on Britain’s NATO role to
hold off threats from Russia. British defense firms have
close ties with companies
across Europe.
On Thursday, U.K. Prime
Minister Theresa May signed a
new defense treaty with Poland.
Britain and France—Europe’s
other country with serious defense prowess—have cooperated closely on defense. In 2010,
the two agreed to a defense
partnership, including the sharing of key military assets, joint
work on nuclear-testing technology and the creation of a
joint expeditionary force.
French officials are now
sending the message that Britain should expect little from
Pesco. That has raised worry
that British firms could also be
left out if the new initiatives
help consolidate a fractured European defense industrial base.
Yet also uncertain are prospects for Pesco itself. Few European multinational defense
projects have succeeded or
boosted efficiency. Troubles
inside Pesco could prompt
France to resurrect its tight
security relationship with the
U.K., offering Britain a continued EU role.
E
urope may also need
Britain’s scientific prowess. The U.K. accounts
for almost half of all EU military research-and-development spending.
Pesco’s proponents say it
will start modestly and gradually increase ambitions. But
there are questions over how
far that can go.
France hopes Germany will
increase its willingness to devote its defense spending to increasingly hard-edged operations. But a U-turn from
Germany’s postwar military cautiousness looks far from certain.
The initial set of European
defense projects are mostly
modest. For now, Mr. Domecq
sees simply establishing Pesco
as significant progress.
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.
Friday, December 22, 2017 | A7
We’re raising the bar on ethics.
But don’t take our word for it,
take theirs.
CFP Board has been a pioneer
in establishing and promoting
professional, competent, and
ethical financial planning services.
AARP strongly agrees with the CFP
Board’s broadening of the fiduciary
standards for CFP® professionals and
requiring them to put a client’s best
interest first at all times.
These revisions will provide enhanced
protections for investors who turn to
CFP® professionals for financial advice,
ensuring that investors receive advice
that is in their best interest at all times
during the relationship.
Consumer Federation of America
co Fo
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.
AARP
It is a comfort to investors
to know that the highest
standard of investor
advice and duty of care
will be upheld by CFP®
professionals.
We are firm believers in the
need for investor protections.
We support these proposed
Revisions because they offer
expanded protections to
investors seeking financial
planning guidance that is in
their best interest.
Consumer Action
National Consumers League
The financial world has never been as complicated as it is today. More and more, people are
demanding that the financial professional they choose to work with put their best interest above all
n-
else. That’s been a given at CFP Board for years. However, in view of today’s financial climate, we’re
no
developing a Revised Code of Ethics and Standards of Conduct.
These consumer advocates recognize that raising the standards for those who provide financial
advice is an important step forward for consumers and for the financial profession as a whole.
CFP Board has always taken our role of benefiting the public with the utmost seriousness. We
know that we are dealing with far more than numbers and dividends. We are dealing with people’s
lives and the lives of their families. There is no greater responsibility.
C E R T I F I E D F I N A N C I A L P L A N N E R B O A R D O F S TA N DA R D S , I N C .
To find a CFP® professional, visit letsmakeaplan.org
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A8 | Friday, December 22, 2017
WORLD NEWS
Says
Car Rams Shoppers in Melbourne BOJ
It Isn’t
A man rammed a car into
pedestrians and Christmas
shoppers in a bustling area of
Australia’s second-largest city,
injuring at least 18 other people in an act police said was
deliberate.
Police in Melbourne said
they arrested the 32-year-old
male driver of a white fourwheel-drive Suzuki at the
scene, along with another man
who was later released. Four
people were critically wounded
on Thursday, said Daniel Andrews, premier of Victoria
state, and an additional 15 including the driver are in stable
condition. Police said the incident was likely not terrorism.
The driver was alone in the
car and is Australian of Afghan descent, with some history of assault, drug use and
mental illness, said Shane Pat-
@LACHLANVE/REUTERS
By Robb M. Stewart in
Melbourne and Rob
Taylor in Canberra
Police officers detain a suspect at Melbourne’s Flinders Street Station after a car hit pedestrians.
ton, acting chief commissioner
of the Victoria state police.
“He is under arrest for
what we allege is a deliberate
act,” Mr. Patton said, adding
that the incident is being
treated as an isolated event.
“At this time we do not have
any evidence for any intelligence to indicate there is a
connection with terrorism.
However, we continue to support this investigation with
counterterrorism command to
ensure that there isn’t that
connection and that there is
no ongoing threat.”
The second man, 24, was in
possession of a bag containing
three knives and was arrested
after being seen filming the
events on his phone. He was released overnight but police said
they expected to charge him
with possession of marijuana
and weapons, though the offenses aren’t linked with the
car that drove into pedestrians.
Witnesses said the vehicle
accelerated after running a red
light and plowing into pedestrians at high speed adjacent
to Flinders Street Station, one
of Melbourne’s busiest transportation hubs.
Mr. Patton said the Suzuki
pulled on to tram tracks running parallel to the train station, drove through an intersection and into the pedestrians.
The driver was captured by an
off-duty police officer soon after his car crashed.
Both the officer and the
driver—who Mr. Patton said
resisted arrest—were taken to
a city hospital. The suspect
was still in the hospital Friday
morning and no charges had
yet been brought, police said.
“To describe this as a lonewolf incident is not probably
not apt,” Mr. Patton said. “This
is an horrific incident where a
person drove directly at pedestrians. It is a crime and we will
be fully exploring that. One of
the key aspects we are exploring
is in respect to mental-health
backgrounds and drug use in respect of this individual.”
such as GlobalBaby8.com,
promising luxurious birth vacations to Saipan.
The Chinese translator
whose wife gave birth on
Saipan said total costs can
exceed $50,000.
“Everyone is feeling unsafe in China,” the father
said, citing among other
things the political crackdown under President Xi Jinping. “We will do anything
for our kids.”
The father still lives on
Saipan with his wife and
children, and fears they will
be deported.
Saipan is leaving it to federal authorities to chase
down immigration violators.
The Justice Department in
April said it was cracking
down on immigration violations in the Northern Marianas, after the conviction of
a Taiwan national for harboring a Chinese birth tourist who had overstayed.
leged state subsidies to Bombardier and would intensify
competition between Airbus
and Boeing. Boeing opposed
the Airbus move, calling it “a
questionable deal between two
heavily state-subsidized competitors to skirt the recent findings of the U.S. government.”
The Commerce Department
has proposed slapping Bombardier with a tariff that
would quadruple the price of a
CSeries aircraft in the U.S. after Boeing complained of
predatory pricing and state
subsidies. A final decision is
expected next year. Brazil has
also challenged Canada’s support for Bombardier before
the World Trade Organization.
Embraer was founded in
1969 with help from the Brazilian government. When the government privatized the company in 1994, Embraer was
unprofitable and saddled with
over $200 million in debt.
Boeing, based in Chicago, is
the world’s largest aerospace
company with a market value
of about $176 billion. It makes
commercial jetliners and defense, space and security sys-
tems as well as military aircraft, weapons, satellites and
helicopters.
Buying Embraer would also
increase Boeing’s exposure to
the market for business jets,
which has been under pressure
from sluggish sales since the
financial crisis.
Under Chief Executive Dennis Muilenburg, Boeing has
been cutting costs, in-sourcing
more manufacturing and reducing pension liabilities. Its
shares have soared this year
as it has boosted cash generation and pledged to return $18
billion to stockholders over
the next two years via buybacks.
It is expected to be one of
the largest beneficiaries of tax
reform, with analysts forecasting its effective tax rate will
drop 10 percentage points to
the upper teens. Some deal
makers have speculated that
companies that benefit from
tax reform could earmark the
proceeds for mergers and acquisitions.
—Ben Dummett, Doug
Cameron and Robert Wall
contributed to this article.
Chinese favor western Pacific territory where babies automatically qualify for U.S. citizenship
co Fo
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NANCY BOROWICK FOR THE WALL STREET JOURNAL
Micro Beach in Garapan. A Chinese father, worried about political conditions at home, said ‘we will do anything for our kids.’
BOEING
Continued from Page One
panies have been discussing a
deal that would involve a relatively large premium for the
Brazilian company, which had
a market value of about $3.7
billion before it soared on the
news, according to people familiar with the matter.
The parties are awaiting
word from the Brazilian government on whether it would
sign off on the combination, the
people said. The government
has a so-called golden share in
Embraer that gives it veto
power over such a transaction.
Embraer is a crown jewel of
Brazilian industry, and it is far
from guaranteed the government would sign off.
A deal would be the latest
in a string of aerospace blockbusters that could remake the
landscape for plane production around the globe.
In September, in the biggest
aerospace deal in history,
United Technologies Corp.
agreed to buy airplane-parts
maker Rockwell Collins Inc.
for $23 billion. And Northrop
Grumman Corp. agreed to buy
rival defense contractor Orbital ATK Inc. for $7.8 billion
in cash. Earlier this year,
Rockwell closed on a deal to
buy aircraft-seat maker B/E
Aerospace.
To help entice the government, Boeing is willing to take
steps to protect Embraer’s
brand, management and jobs,
one of the people said. It is
also ready to structure a deal
in a way that would protect
the government’s interest in
Embraer’s defense business,
which already has a joint venture with Boeing.
Embraer’s U.S. shares
soared on the Journal report
Thursday—at one point rising
by some 30%—and closed up
22%. Boeing was little
changed.
Embraer, based in the city
of São José dos Campos in the
state of São Paulo, is the
world’s third-largest commercial-jet manufacturer by revenue and has some 18,000 employees. It is best known for
making regional jets in the 70-
Born in the U.S.A.
Number of babies born on
Saipan to Chinese mothers
500
400
Visa-free travel
introduced
300
200
100
0
2008’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17*
*As of Nov. 1
Sources: Commonwealth Healthcare
Corporation; Health & Vital Statistics Office
THE WALL STREET JOURNAL.
about birth tourism, provided the visitor has the
funds to pay for required
medical procedures and
doesn’t intend to overstay,
said Jaime Ruiz, a spokesman for U.S. Customs and
Border Protection.
In 2015, when U.S. Immigration and Customs Enforcement raided nearly 40
locations tied to birth-tourism operations in Southern
California, the search warrants cited suspected visa
fraud, tax evasion and harboring illegal immigrants,
among other charges. The
related cases continue, ICE
said.
The translator in Saipan
said immigration enforcement on the U.S. mainland
had led more Chinese parents to consider Saipan.
While birth-tourism packages to Los Angeles included
guidance on how to qualify
for a tourist visa, Chinese
travelers to Saipan needn’t
clear that hurdle.
In China, websites advertising birth-tourism packages abound, with names
EMBRAER SA/REUTERS
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here than Americans.
“As long as you have
birthright citizenship, it’s
true this is something that
can be exploited,” said Doris
Meissner, former commissioner of the U.S. Immigration and Naturalization Service and senior fellow at the
Migration Policy Institute.
“This is the first I’ve heard
of Saipan,” she said. “That’s
actually quite clever.”
U.S. authorities don’t have
a tally of how many people
come to the U.S. each year to
gain birthright citizenship.
An association of Chinese
birth-tour operators estimated that 10,000 Chinese
birth tourists came to the
U.S. in 2012.
Chinese travel businesses
offer competing packages to
help Chinese mothers reach
U.S. soil and provide them
with lodging, hospital care
and domestic help.
There is nothing illegal
no
SAIPAN, Northern Mariana Islands—This U.S. territory in the western Pacific is
known for its epic World
War II battle, white-sand
beaches and the enduring
culture of its indigenous
Chamorro people.
But for a certain class of
Chinese parents, Saipan has
become known as the latest
hot spot for birth tourism, a
place where women can give
birth to babies who will automatically acquire U.S. citizenship.
The Northern Marianas,
an island chain that includes
Saipan, is the only U.S. soil
that Chinese can visit without a visa, after a change in
immigration policy in 2009
allowed Chinese and Russian
tourists visa-free entry for
up to 45 days.
“It’s just like if God
opened a window for you,”
said a Chinese father who
works as a translator here
after coming a few years ago
to ensure his child would be
born American.
The Northern Marianas
pressed for the visa waiver
to support an economy reliant on tourism, notably to
Saipan’s casinos and gambling parlors. The number of
Chinese visitors has risen
substantially since 2009 and
now represents 36% of tourists to the island, which is
four to five hours’ flight
from Shanghai and Guangzhou. Tourism accounts for
72% of Saipan’s economy.
The number of American
babies born here to Chinese
women who entered as tourists also climbed—to 472 last
year from eight in 2009—according to the Northern
Marianas government. Last
year, for the first time, more
Chinese tourists gave birth
Embraer’s Phenom 300E corporate jet unveiled earlier this year.
to 100-seat range, which are
heavily used on routes where
demand doesn’t warrant use
of larger Boeing or Airbus
planes. Its new E2 jet can
carry up to 140 passengers.
Boeing’s smallest jet has
around 130 seats. The company hadn’t previously indicated interest in smaller
planes. Embraer’s defense offerings include the A-29 Super
Tucano light-attack and advanced trainer aircraft and the
KC-390 military cargo plane,
which is marketed by Boeing
as part of their joint venture.
Embraer also makes systems for border monitoring
and surveillance.
Airbus recently announced
plans to take a majority stake
in Bombardier’s single-aisle
CSeries jetliner, a struggling
program that the European
company thinks could have big
potential.
That proposed deal comes
amid a trade dispute between
the U.S. and Canada over al-
BY MEGUMI FUJIKAWA
TOKYO—Bank of Japan Gov.
Haruhiko Kuroda poured cold
water on speculation that the
central bank is cultivating the
ground for raising interest
rates next year amid a global
wave of policy tightening by
central banks led by the Federal Reserve.
After the Japanese central
bank stood its ground on monetary policy earlier in the day,
Mr. Kuroda said that consumer
prices were the key element in
the bank’s decisions on interest rates, implying that no
near-term changes were
planned.
He added that pressure on
commercial banks stemming
from central-bank policies had
been addressed.
But he also left the door
open to the possibility of
higher rates before the central
bank reaches its 2% inflation
target, and even further easing
if prices slump.
“The BOJ is going to maintain current monetary settings
as long as the price momentum remains unchanged,” Mr.
Kuroda said at a news conference after repeated questions
about whether the bank was
considering raising rates.
“That doesn’t mean the BOJ
wouldn’t change the yield target if inflation came close to
hitting 2%,” he said.
The core consumer-price index rose 0.8% year-to-year in
October—the fastest on-year
rise in 2½ years but still far
from the bank’s target.
The governor’s comments
may go some way to decrease
expectations of possible rate
increases next year, though
economists are also wary of
dropping their guard against a
potential policy change in the
works.
“The BOJ could raise rates
if inflation reaches halfway to
its 2% target, giving it confidence that it will reach the
goal,” said Takuji Aida, chief
economist at Société Générale
in Japan.
But he added that the bank
would also need to feel comfortable about the balance of
risks ahead and an exchange
rate of around ¥120 against
the dollar to reach a launching
point for higher rates.
A weaker yen helps push up
import prices to help stoke inflation while also boosting the
overseas profits of Japan’s exporters in the domestic currency.
At its meeting, the central
bank kept its target for 10year Japanese government
bond yields at around zero
and its short-term deposit rate
at minus 0.1%.
The bank also maintained a
pledge to buy government
bonds at an annual rate of ¥80
trillion ($705 billion), a commitment that is seen by investors as a symbolic gauge of
the bank’s commitment to easing.
The decision to hold rates
steady came little more than a
week after the Fed raised U.S.
rates for the third time this
year as it leads a global shift
in central banking toward
tighter policy.
More ‘Birth Tourists’ Choose Saipan
BY JON EMONT
Preparing
Rate Rise
ly
.
At least 18 people are
hurt in attack police
say was deliberate,
but likely not terrorism
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THE WALL STREET JOURNAL.
Friday, December 22, 2017 | A9
We manufacture prescription opioids.
How could we not help fight the
prescription and illicit opioid abuse crisis?
co Fo
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.
Two doctors founded a company in 1892 now known as Purdue Pharma.
Continuing the strong heritage of a research-driven, science-based
company, another doctor is currently at the helm as CEO. We’re the
pharmaceutical company that manufactures OxyContin®. Patients’ needs
and safety have guided our steps. It’s what led us to research and develop
medications to help patients. Today, it’s what has spurred us to redouble
our efforts in the fight against the prescription and illicit opioid abuse
crisis. It’s why we’re taking action.
We support recommendations in The President’s Commission on
Combating Drug Addiction and the Opioid Crisis and the FDA’s Opioid
Action Plan. There are too many prescription opioid pills in people’s
medicine cabinets. We support initiatives to limit the length of first opioid
prescriptions. Reducing the number of excess tablets won’t end the
epidemic, but we believe it will help rein in the problem. We believe doctors
should check their state Prescription Drug Monitoring Program (PDMP)
databases before writing an opioid prescription, to guard against doctorshopping by those trying to game the system. Information sharing between
state databases must improve.
no
n-
Our industry and our company have and will continue to take meaningful
action to reduce opioid abuse. We focused our talented research scientists
and applied our innovative thinking to making opioids with abuse-deterrent
properties, making them harder to crush and, therefore, harder to be
abused by snorting or injection. With this investment, we pioneered
the pharmaceutical industry’s movement toward developing opioids
with abuse-deterrent properties when we were the first to receive FDA
approval.1 Developing new formulations is risky and there are never any
guarantees, but we did it anyway. Our company also took the initiative
to distribute the CDC Guideline for Prescribing Opioids to thousands of
prescribers and pharmacists shortly after it was released.
As we continue to fight the prescription opioid and illicit substance abuse
crisis, we are applying our resources and our best scientific minds to
discover and develop new, non-opioid pain medicines for patients.
No one solution will end the crisis, but multiple, overlapping efforts will.
We want everyone engaged to know you have a partner in Purdue Pharma.
This is our fight, too.
www.purduepharma.com
1
Opioids with abuse-deterrent properties are not abuse-proof and don’t prevent addiction,
but they are part of a multifaceted approach to addressing the prescription opioid abuse crisis.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Friday, December 22, 2017
NY
THE WALL STREET JOURNAL.
* *****
WORLD NEWS
Pope Scorns ‘Cliques’ in Vatican
After dismissing or
demoting a number
of officials, Francis
lectures their peers
BY RYAN DUBE
ROME—Pope Francis chastised the Vatican bureaucracy to
its face on Thursday, bringing a
censorious end to a year in
which tensions between the
pontiff and senior officials
spilled out into the open.
The pope used his preChristmas address to decry
what he described as a cancer
of plotting, pride and ambition
among Vatican officials, which
he said was holding back reform in the highest echelons of
the Catholic Church.
He made his remarks to the
heads of the Vatican bureaucracy, officially known as the
Roman Curia, following a year
marked by the acrimonious departure of one of his highestranking subordinates and friction with several other officials
past and present.
The pope denounced what he
called an “unbalanced and degenerate logic of plots and
cliques” that he described as a
cancer on church institutions
and on the officials themselves.
Pope Francis reserved his
CLAUDIO PERI, PRESS POOL
BY FRANCIS X. ROCCA
Peruvian
President
Won’t Be
Impeached
The pope used his pre-Christmas address to decry what he described as a cancer of plotting, pride and ambition in the Curia.
sharpest language for unnamed
“betrayers of trust” who “let
themselves be corrupted by
ambition or vainglory” and,
once let go, “erroneously declare themselves martyrs of
the system, of the ‘uninformed
pope,’ of the ‘old guard,’ instead of reciting a mea culpa.”
In July, the pope took the unusual step of replacing Cardinal
Gerhard Müller, head of the Vat-
ican’s doctrinal office, several
years before retirement age and
without reassigning him. During
his tenure, Cardinal Müller had
publicly differed with the pope’s
policy of leniency toward di-
vorced Catholics and criticized
some of the pope’s personnel
decisions. Since his dismissal,
the cardinal has given interviews complaining about the
manner in which he was fired.
AUSTRALIA
CUBA
DJ KYLE/ASSOCIATED PRESS
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
CHINA
ly
.
WORLD WATCH
U.N. Asked to Delay
Blacklisting Ships
World War I Sub
Is Found on Seabed
Leadership Will Stay
In Place Into April
Beijing asked the United Nations Security Council to delay
deciding whether to blacklist 10
ships the U.S. says have violated
international sanctions against
North Korea, a diplomat said.
A panel that reports to the
Security Council had been poised
Thursday to formally designate
the ships as sanctions violators.
Such an action would have
blocked the vessels from entering the ports of U.N. members.
—Michael R. Gordon
An undersea-search team located the wreck of an Australian
submarine that disappeared
without a trace off the coast of
New Guinea in the opening
weeks of World War I.
The remains of the AE1—the
first Allied submarine lost in the
conflict—were found near the
town of Rabaul, in present-day
Papua New Guinea, in about 1,000
feet of water, Australian Defense
Minister Marise Payne said.
—Rob Taylor
The National Assembly said
the country’s leadership would
stay in power into April, a clear
signal that Raúl Castro will remain as president two months
longer than expected.
Mr. Castro, 86 years old, had
said that he planned to step
down in February. Mr. Castro
heads the assembly. The National
Assembly announced through
state media that its current term
would run through April 19.
—Associated Press
n-
RESCUE: Volunteers bring ashore survivors of a Philippine ferry
carrying more than 250 that sank off Quezon on Thursday.
LIMA, Peru—Peruvian President Pedro Pablo Kuczynski
avoided being removed from
office, as lawmakers voted on
Thursday against impeaching
him over a scandal tied to Brazil’s corruption-ridden construction giant Odebrecht SA.
The opposition-controlled
Congress fell short of the 87
votes needed to oust Mr. Kuczynski, with 78 lawmakers
supporting the impeachment
and 19 opposed. Twenty-one
lawmakers abstained.
Mr. Kuczynski faced the impeachment vote after documents emerged revealing that
his company had ties to Odebrecht a decade ago while he
was a senior government official in another administration.
He had repeatedly denied links
to Odebrecht, which is at the
center of a corruption scandal
that has rocked Latin America.
The impeachment process
rattled Peru amid worries that
it would usher in a period of
political turmoil in a major
global copper producer and
one of Washington’s closest allies in Latin America.
Lawmakers from some
smaller parties that were considering supporting the impeachment pulled back after
concerns that Mr. Kuczynski’s
removal would deepen a political crisis.
Mr. Kuczynski said that his
vice presidents would resign if
he was impeached, resulting in
new elections.
The Odebrecht scandal has
rippled throughout Latin
America. The firm admitted
last year in a plea deal with
the U.S. Justice Department to
paying nearly $800 million in
bribes to secure state contracts. In Peru, it said it paid
$29 million in bribes over
three administration from
2005 to 2014.
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THE WALL STREET JOURNAL.
Friday, December 22, 2017 | A11
IN DEPTH
STOCK
Timely Gifts
K12 Share Price
Donations
$40 per share
Richard
Sandler
Michael and
Lowell Milken
Ralph
Finerman
30
20
10
0
2013
’14
n-
Milkens’ Donations
Among stock gifts reported
to the SEC, the Milken brothers’ donations stand out for
both size and timing. Over a
decade, Michael Milken donated $57 million worth of
stock of LeapFrog Enterprises,
a maker of educational toys,
and of K12, a company that
manages and provides curricula for online charter schools.
Collectively, the shares
were worth about $15 million
less, or 27%, 30 trading days
after the gifts were made.
Lowell Milken donated
about $16 million of the two
companies’ stock. Thirty trading days after the gifts, the
stock was worth about 20%
less.
SEC filings don’t show to
whom they gave, and Mr.
Sandler didn’t say. Documents
The findings reveal
‘uncanny timing
ability’ by donors,
one professor said.
In the early days at LeapFrog, “we met with Michael
Milken quite a bit, because he
was really interested in what
we were doing and how were
doing it,” said a co-founder of
that company, Michael Wood.
LeapFrog went public in
July 2002, with Knowledge
Universe retaining more than
80% of the voting stock. The
shares roughly tripled between then and September
2003, when Michael Milken
began giving some to charity.
On six days from Sept. 8 to
Oct. 10 of 2003, Michael
Milken donated 400,000 LeapFrog shares, worth about $17
million. His brother donated
Michael Milken, top, and Patrick Soon-Shiong were among those
who have made gifts of stock at times when they would have
produced attractive tax deductions, according to a WSJ analysis.
about 250,000 shares, worth
about $10.5 million, in five
gifts from Aug. 29 to Oct. 17,
SEC filings show.
After the market close on
Oct. 21 of that year, LeapFrog
reported disappointing earnings. The next day, the stock
lost a quarter of its value.
Mr. Wood, the LeapFrog cofounder, said that after the
IPO, “we didn’t discuss financials with Michael Milken or
any other shareholders.”
Mr. Sandler said the Milken
brothers had made arrangements to donate shares in late
August, almost two months
before the price tumble. He
said they usually do their financial planning, including
amounts to be contributed to
charitable foundations, in the
second half of the year.
He also said the Milkens
continued to own large stakes
in LeapFrog for over five
years, while its price eroded.
Last year, it was sold to Hong
Kong electronics company
VTech.
At K12, Lowell Milken
served on the board before the
company was public. “Lowell
Milken knows an incredible
amount about education and
was an incredible partner to
bounce things off of,” said K12
founder Mr. Packard.
He added, “I learned a lot
about big vision and big ideas
and making them reality from
Mike.”
K12 went public in 2007.
Executive Chairman Nathaniel
Davis said he “didn’t have
much interaction with” the
brothers after that. Several
Knowledge Universe officials
served on the public boards of
K12 and LeapFrog.
The Milken brothers made
four charitable stock gifts of
K12 from 2010 to 2012, totaling about $15 million. In those
instances, the stock rose in
subsequent weeks and months.
They made much larger donations of K12 stock on Sept.
3, 2013—in Michael Milken’s
case $27.7 million worth, and
in Lowell’s case $2.8 million
worth.
The Milken Family Foundation received an unspecified
stock gift several days later,
its tax records show. The donation equaled the value of
500,000 K12 shares, which is
two-thirds the number Michael Milken donated in total.
K12 shares hit their 2013
peak on Sept. 10. Over the next
two days, Mr. Sandler and his
wife donated about $242,000
worth of K12 shares. On Sept.
16, Milken Family Foundation
Treasurer Ralph Finerman
gave his own family foundation $50,000 of the stock.
Then on Oct. 9, poor enrollment results at K12’s schools
sent the stock to its 38% single-day fall.
There is no way the men
could have foreseen that, Mr.
Sandler said. He pointed to the
dismissal of a suit by shareholders claiming they had
been misled, in which the
judge said the plaintiffs hadn’t
shown that officers and direc-
Before the Fall
Michael and Lowell Milken donated more than $27 million worth of
LeapFrog shares in the weeks before the educational-toy company’s
stock dropped steeply.
LeapFrog Share Price
Micheal Milken’s donations
Lowell Milken’s donations
$50 per share
40
30
20
10
0
2003
Source: SEC filings
tors knew of K12’s troubles before its stock plunged. The
Milkens and Messrs. Sandler
and Finerman weren’t parties
to the suit.
Before the Milkens donated
the K12 stock, it had been tied
up in a partnership for six
years, Mr. Sandler said. The
partnership was coming to
term and its advisers recommended the K12 shares be distributed to investors after a
late-August earnings report.
SEC filings show the brothers
donated K12 shares the day of
the distribution.
The attorney said he and
Mr. Finerman were also part
of the partnership, and all four
men made independent decisions to donate K12 shares to
charity. Mr. Finerman said the
timing of his gift “would have
been solely an issue that had
to do with me and my personal tax situation.”
Another member of the
partnership, Leon Black, didn’t
donate any shares to his foundation at the time. Mr. Black, a
onetime Milken colleague at
Drexel who is the CEO of private-equity firm Apollo Global
Management, held on for two
years during which the K12
stock slid further.
How much better donors’
tax deductions might have
been, as a result of giving before the stock drop, can’t be
known with any precision
without knowing details of
their tax situations.
ly
.
VIVEK PRAKASH/BLOOMBERG NEWS (TOP); RINGO CHIU/ZUMA PRESS
The largest gift on a stock’s
annual high came from billionaire investor George Soros,
who donated $192 million of
JetBlue shares to his Open Society Institute on Oct. 9, 2003,
a day the stock hit its all-time
high. Thirty trading days later,
it was down by 27%. A spokesman for Mr. Soros said he donated on the day certain
lockup restrictions on the
shares expired. The Journal
found no other well-timed
gifts by Mr. Soros.
Some gifts the Journal
identified didn’t come on peak
price days but would have
yielded skimpier tax deductions if made a bit later.
James Wade, a former director of MetroPCS Communications, and his wife donated
$1.7 million worth of its stock
to their family foundation between July 15 and July 26,
2011, the foundation’s tax filings show. Mr. Wade wasn’t a
director at the time. On Aug.
2, after a weak earnings report, the stock fell 37% in a
single day.
Mr. Wade, managing partner of private-equity firm M/C
Partners, declined to comment.
Two large gifts of The Bancorp Inc. stock by its chief executive came before sudden
tumbles in the stock. ThenCEO Betsy Cohen gave about
$2 million in stock to her family foundation on March 6,
2014, through an investment
vehicle. The stock continued
upward but then suffered a
15% one-day drop on April 24
after disappointing earnings.
In early May, Ms. Cohen donated $3.1 million more Bancorp stock to the foundation,
about a month before the
stock fell 29% in a single day
after the company signed a
consent order with regulators
pertaining to its anti-moneylaundering efforts. Ms. Cohen,
who retired at the end of 2014,
didn’t respond to requests for
comment.
PRENSA INTERNACIONAL/ZUMA PRESS
Soros gift
reviewed by the Journal indicate a likely recipient of some
of the stock was the Milken
Family Foundation, which was
founded in the 1980s and supports causes including education. Both brothers are directors of the foundation and
Lowell Milken is chairman.
Michael
Milken
also
founded the Milken Institute
think tank and supports research on prostate cancer,
which he survived. The Milkens “are among the most generous living Americans,” Mr.
Sandler said. Their philanthropic interests are “extremely important to them.”
Michael Milken, whose fortune Forbes estimates at $3.7
billion, gained fame in the
1980s for his pioneering work
in high-yield-bond financing
for leveraged buyouts, working
at the now-defunct securities
firm Drexel Burnham Lambert.
He and some associates, including his brother, were the
focus of insider-trading and
fraud investigations. Mr.
Milken served 22 months in
federal prison after pleading
guilty in 1990 to six felony
counts involving the violation
of securities regulations. He
didn’t plead guilty to insider
trading. The criminal case
against Lowell was dropped.
The SEC barred both Milkens
from the securities industry
for life.
In 1996, the brothers cofounded Knowledge Universe
with Oracle Corp. founder
Larry Ellison, who later exited.
Knowledge Universe took a
controlling interest in LeapFrog in 1997 and a few years
later provided seed money for
K12 when a Knowledge Universe officer, Ron Packard,
founded it.
co Fo
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er rs
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on
sharply in the next few days.
Within 30 trading days of
July 29, the stock had fallen
by 31%. By the end of the year,
it was down 55%. The biotech
sector had a selloff during the
second half of 2015. A spokeswoman for Dr. Soon-Shiong
declined to comment.
Joseph Hassoun, a computer-chip engineer, gave his
foundation 42 stock gifts totaling $900,000 between 2001
and 2014. Two-thirds of the
gifts fell on a day when the
stocks were at one of their 10
highest prices of the year. Ten
gifts came on the day the
stocks hit their yearly highs.
His six most recent gifts
were of shares that fell at
least 95% by year-end. Mr.
Hassoun didn’t respond to requests for comment.
’15
THE WALL STREET JOURNAL.
Source: IRS filings, SEC filings
no
Continued from Page One
of Mr. Milken donated K12
stock close to the same time
he did, including his brother
Lowell, who was a colleague
during the junk-bond boom of
the 1980s until a scandal
ended the brothers’ securities
careers.
Good luck or coincidence is
one explanation for many of
the well-timed stock gifts. Academic researchers say another possible explanation for
some, given the outsize number of such gifts, is that some
donors might be guided by inside information or backdating
their stock gifts. Legal experts
don’t agree on whether donating based on nonpublic information would be unlawful.
Backdating a gift could be tax
fraud, tax lawyers said.
Richard Sandler, a longtime
lawyer for the Milken brothers, said their stock gifts were
correctly dated and they had
no inside information. “Neither Michael Milken nor Lowell Milken had any knowledge
that either the Leapfrog stock
price or the K12 stock price
would rise or fall after they
donated the shares to charitable organizations,” he said in a
written statement.
The Milken brothers were
investors, not officers or directors, Mr. Sandler added,
and they “have meticulously
avoided ever being in a position where they can learn nonpublic information regarding
any public company that they
had an investment in.” Officials of K12 and LeapFrog said
they had little to do with the
Milkens after the companies
were public. Mr. Sandler noted
that the education-company
stocks the brothers donated
were a small portion of their
extensive philanthropy over
many years.
Charitable donors of stock
are giving away value, not setting out to line their pockets.
If maximizing assets were
their only goal, simply not giving away the stock, or selling
it, would typically work better.
Still, for those who have decided to make charitable stock
contributions, timing matters.
Donors gain a tax deduction
commensurate with the stock’s
price on the day of the gift,
which creates an incentive to
donate when they think the
stock is near a high and to get
ahead of a possible drop.
Mr. Sandler, the Milkens’
attorney, donated K12 stock to
his family foundation within
days of that stock’s yearly
price peaks in 2010, 2011 and
2013. “Obviously, there is no
way that I could predict which
direction the price of the stock
will move,” Mr. Sandler said.
The Journal examined some
14,000 donations of stock to
private foundations. The analysis was newly possible because last year the Internal
Revenue Service made charities’ tax returns filed since
2011 available in a digital format. The analysis didn’t include public charities, which
needn’t identify their donors.
The Journal found three
times as many gifts were
made before significant stockprice drops as before price increases of similar size. The
Journal calculated how the
price changed in the 30 trading days after the gift was
made, and adjusted for moves
in the overall stock market.
The Journal’s findings “indicate extremely uncanny timing ability by the donors,” said
Nejat Seyhun, a University of
Michigan business professor.
The Journal also created a
database of gifts by companies’ officers, directors, and
10%-or-greater stakeholders,
who have to report to the SEC
any gifts of these companies’
shares. This made it possible
to identify additional charitable stock gifts made on fortunate days, including the Milkens’, which weren’t reflected
in the IRS data. The SEC data
dates from mid-2003, when it
became available electronically, through November 2017.
One of the largest welltimed gifts was by Patrick
Soon-Shiong, a physician and
entrepreneur who is a founder
of cancer-drug businesses,
several of which have had
joint ventures with Sorrento
Therapeutics Inc. He used an
investment vehicle to donate
nearly $105 million in shares
of Sorrento to his family foundation on July 29, 2015, according to the foundation’s tax
return. (SEC filings show donation dates of July 24 and
July 28.)
The stock hit its all-time
high on July 22 and fell
Michael Milken, his brother Lowell and two associates donated shares
of education company K12 worth more than $30 million combined in
the weeks before the stock fell 38% in a single day.
’04
’05
THE WALL STREET JOURNAL.
Lowell Milken made timely
gifts of two education stocks.
Top Timing
But the Milkens’ timing was
better, in terms of the potential for tax deductions, than
that of the vast majority of
others who reported stock
gifts to the SEC, under the 30trading-day window the Journal used to assess timing.
Different possible measures—20, 45, 60 or 90 trading days later—also show the
Milkens’ timing as better than
most others who reported
stock gifts to the SEC from
2003 through November. Mr.
Sandler said the price of K12
“rose immediately after” the
stock gifts, however, as did
that of LeapFrog.
“The public announcements that resulted in price of
each stock falling were made
over a month to almost two
months after the donations,”
the attorney said in a written
statement.
Messrs. Sandler and Finerman didn’t have to report
their gifts to the SEC, because
they weren’t officers or 10%
company owners. Their stock
gifts are reported on their
family foundations’ tax filings.
Mr. Sandler and his wife
made two earlier gifts of K12
stock to their foundation on
highly favorable days. In September 2010, they donated
$285,000 of shares the day before the stock hit its high for
the year, tax filings show. In
April 2011, they donated
$196,000 of stock on the day
K12 hit its all-time high.
Mr. Sandler pointed to
other stock donations that
weren’t so well-timed. Tax filings show three that preceded
steady rises in the stock price.
Mr. Sandler said the stocks
the Milken brothers donated
were both volatile, subject to
large positive and negative
price swings.
LeapFrog’s 25% decline after the Milkens’ 2003 gifts,
however, was the fourth-largest one-day fall in that company’s history.
K12’s 38% fall after the 2013
donations of K12 stock by the
Milkens and Messrs. Sandler
and Finerman was that company’s largest one-day drop
ever.
—Sky Chadde 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.
A11A | Friday, December 22, 2017
NY
THE WALL STREET JOURNAL.
* *
GREATER NEW YORK
Seeks
Railroads Race to Install Safety Technology Mayor
Schools Chief
The New York region’s three
major commuter railroads are
struggling to meet a federally
mandated deadline to install a
system that reduces the risk of
derailments and crashes.
The issue was underscored
this week with the fatal derailment of a speeding Amtrak passenger train in Washington
state.
Long Island Rail Road,
Metro-North Railroad and NJ
Transit carry a total of about
450,000 rail commuters on an
average weekday. If they fail to
meet the December 2018 deadline, they risk huge fines and
exposure to liability should a
preventable accident occur.
The railroads have had almost a decade to get the system, known as positive train
control, up and running. But according to Federal Railroad Administration documents, they
are far from completing their
task.
By October, the LIRR had
completed outfitting 49% of its
580 locomotives with the safety
equipment; Metro-North had
completed 27% of its 531 locomotives; and NJ Transit had fin-
Positive train control can
prevent derailments, train-totrain crashes and other accidents by automatically slowing
or stopping trains that are on
the wrong stretch of track or
speeding. It uses sensors
placed alongside tracks and on
board trains to monitor the
train’s speed and location.
Congress mandated in 2008
that freight and passenger railroads install the technology in
the wake of several high-profile
fatal collisions. An initial deadline of 2015 was extended to
2018 after many railroads fell
behind schedule.
Union Pacific’s Corp.’s Chief
Executive Lance Fritz warned in
a 2015 letter to the U.S. Senate
Commerce Committee that the
railroad risked exposing itself
“to untold liability” if the freight
railroad were involved in an accident with a passenger train
after operating beyond the
deadline.
Chicago’s commuter rail service, Metra, threatened to shut
down if the deadline wasn’t extended. Donald Orseno, Metra’s
chief executive, said Metra
faced fines of $25,000 per train
a day for operating beyond the
deadline.
The FRA will grant railroads
an extension through 2020, but
only if they have completed the
installation of all positive train
control equipment and demonstrated that it works on some
routes by the end of next year.
ished 6% of its 440 locomotives.
Although the LIRR has put
the equipment in all necessary
radio towers, NJ Transit has
done so for only 19% of 124 radio towers, and Metro-North
has for only 12% of 104 towers.
Considerable work remains
for the railroads to train employees and test the system on
their lines.
The railroads face myriad
challenges, including equipment
shortages caused by an industrywide demand for the same
technology, problems acquiring
the necessary radio spectrum,
as well as time constraints in
testing equipment while running some of the nation’s busiest rail systems.
NJ Transit’s former chief
compliance officer Todd Barretta told state legislators in
Trenton this summer, shortly
after leaving the agency, that NJ
Transit will miss the 2018 deadline.
A spokeswoman for NJ Transit,
Nancy
Snyder,
said Wednesday: “NJ Transit
continues to have every expectation that we will meet the
federal implementation deadline.” She added that NJ Transit
has increased the number of
staff on its positive train control
project team and is speeding up
project delivery milestones.
Joe Lhota, chairman of the
Metropolitan Transportation
Authority, which runs MetroNorth and the LIRR, said Tuesday: “We are moving heaven
and earth to make the positive
train control deadline by the
end of 2018.”
Three people were killed and
dozens were injured in the Amtrak derailment south of Seattle
this week. The train was on its
inaugural ride along a new
route when it entered a curve at
50 miles an hour above the
speed limit.
The rail authority that owns
and maintains the track, Sound
Transit, hadn’t completed installation and testing of positive
train control.
Mr. Lhota stressed that the
derailment in Washington
couldn’t have happened on
Metro-North or LIRR lines because the authority has put automatic speed controls in place
on potentially dangerous curves.
That equipment was installed
following a Metro-North derailment in 2013 at Spuyten Duyvil
in the Bronx when a train entered a curve at more than
Behind Schedule
The tri-state region’s three major
commuter railroads are
struggling to meet a December
2018 deadline to upgrade trains
to have positive train controls.
Completed
Locomotives equipped
0%
50
100
Metro-North
LIRR
NJ Transit
Radio towers installed
0%
Scott Rechler, chairman of
urban-planning think tank
Regional Plan Association
KENA BETANCUR/GETTY IMAGES
‘Already our
region is a region
that has an
affordability
issue...How much
weight can you
put on the branch
before the talent
that really drives
the growth of our
region decides to
go somewhere
else?’
50
100
Metro-North
LIRR
STEPHANIE KEITH FOR THE WALL STREET JOURNAL (5)
no
nElaine Pouliot, 58,
Battery Park City,
corporate image
consultant
‘I might move.
I’ve been thinking
about traveling
and leaving the
country.’
Anthony Davis, 44, entrepreneur and small-business owner,
Jersey City
Deandre Cousley, a dancer,
from Queens
Carmen Fariña,
chancellor of
New York City
schools, is
retiring after
four years in
the position.
Employees trained
0%
50
100
Metro-North
LIRR
NJ Transit
Note: Status as of October 31, 2017
Source: Federal Railroad Administration
twice the speed limit, killing
four people.
NJ Transit installed the same
technology on its potentially
dangerous curves following that
derailment, the agency’s spokeswoman said.
‘My husband’s very happy about it. A lot
of people are saying Trump only did it for
the rich, but sometimes that’s the way the
world goes ’round. When the rich benefit
we all benefit in some ways. Hopefully.’
‘I don’t think that the legislators, much
less us as individuals, had time to look at
all the add-ons and amendments. I’m
also not really sold on the trickle-down
theory—there’s other factors that weigh
into whether a company is going to
increase jobs here.’
Mayor Bill de Blasio said
Thursday he plans to recruit a
new schools chancellor to follow the blueprint drawn by
Carmen Fariña, who announced
her retirement at age 74.
Ms. Fariña was visibly
choked up as the mayor
praised her four-year tenure
running the nation’s largest
school system, which serves
1.1 million children with an operating budget topping $24
NJ Transit
Giulia Vento, 38, of Brooklyn
‘I don’t like the
way this whole
thing came about.
I think there’s so
much hate—they
hate Trump so
much they’re
going to hate this
bill even if
everyone got a
check for $20
million.’
BY LESLIE BRODY
Not Completed
The Local Angle on the Pending U.S. Tax Overhaul
The tax measure passed by
Congress this week hits the
Northeast hard.
It limits deductions for
mortgage interest and for
state and local taxes. Because
New Jersey, New York
and Connecticut have both
high taxes and high home values, residents could see their
federal taxes rise.
“People, particularly those
in New York, are not at all
convinced that the bill will
have a favorable effect,”
said Stuart Rosow, a partner
in the tax department of
Proskauer Rose LLP in New
York City.
On Thursday, tri-state area
residents reacted to the new
law.
—Sonja Sharp
In the Mold
Of Fariña
billion and about 140,000 employees.
The mayor said that with
her “superhuman” energy and
dedication, she fulfilled her
pledge that “70 is the new 40.”
Mr. de Blasio said his team
launched a nationwide search
in recent weeks and hopes to
settle on a successor before
Ms. Fariña departs in a few
months. There don’t appear to
be clear front-runners.
Whoever takes on the post
will oversee a vast system that
has long struggled with wide
achievement gaps among students of different racial and
socioeconomic backgrounds.
About 75% live in poverty and
rising numbers are Englishlanguage learners.
Tough challenges loom, including the need to work with
a strong teachers union,
whose contract expires next
fall. Possible budget cuts at
the federal level could hurt
funding for city schools, and
the city’s Independent Budget
Office has warned that federal
tax changes could hamper the
city’s ability to raise local
taxes.
Big city superintendents’
jobs are so difficult and politically fraught that they generally last about three years on
average, said Frederick M.
Hess, director of Education
Policy Studies at the American
Enterprise Institute. “We tend
to chew them up and spit
them out,” he said.
Mr. de Blasio said he wants
a chancellor whose views align
with Ms. Fariña’s work expanding free prekindergarten,
boosting literacy coaching to
get all children to read on
grade level by third grade, and
adding Advanced Placement
courses, among other steps.
Many parents and advocates say the mayor’s team
hasn’t done enough to diversify schools in one of the most
segregated systems in the
country. New York City
schools range from highachieving jewels like selective
Stuyvesant High School, to
high-poverty schools where
fewer than 10% of children can
read or do math on grade
level. Access is often tied to
where a child lives, and many
parents say the complex system of applying for middle
and high schools favors
wealthier parents with time
and resources to navigate it.
Ms. Fariña, for her part,
said she took great pride in a
half-century career in education and public service. “We
have brought back dignity to
teaching, joy to learning and
trust to the system,” she said.
ly
.
BY PAUL BERGER
Congress Issued
Mandate in 2008
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
NJ Transit, Metro-North
and LIRR have a year
to meet deadline and
still have much to do
‘Anything that
kicks the can down
the road for future
generations to pay
is something I
don’t like.’
Terence Cremins, 38,
Garden City,
risk manager at Deutsche
Bank
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.
Friday, December 22, 2017 | A11B
NY
* *
GREATER NEW YORK
BY CHARLES PASSY
N
ew York City restaurants have a new
mantra this holiday
season: Your goose is
cooked—literally.
A number of dining spots
are putting the fowl, a traditional Christmas favorite in
Europe, on their seasonal
menus as an alternative to
turkey, ham or roast beef.
Some gourmet markets and
butchers also are featuring it.
While goose remains a specialty item,
FOOD &
sourced from a
CULTURE
few gourmetproduct wholesalers or from
farmers who raise less-popular birds, the numbers are
starting to add up. D’Artagnan, a New Jersey-based gourmet company that sells goose
to restaurants in the city as
well as directly to the public
via mail order, says it expects
orders for about 2,800 birds
this holiday season, an increase of 27% over 2016.
Ariane Daguin, D’Artagnan
founder and owner, says the
uptick comes as no surprise
to her because she considers
goose great eating.
“It’s very, very tasty,” she
said.
That is a view seconded by
chefs, who note that goose
has more flavor than chicken
or turkey. And because goose
is more fatty, cooking it is
harder to mess up.
“The meat never dries
out. It is nice and juicy,” said
Thomas Slivovsky, the chef
with Paulaner on Bowery, a
German restaurant in Manhattan’s Lower East Side.
Paulaner is featuring a traditional German roasted goose
preparation, with braised red
cabbage and potato dumplings, as part of its $55 prix
fixe holiday menu.
The gaggle of goose
dishes speaks to a broad interest in meat items that
once were European staples
and are now being embraced
STEPHANIE KEITH FOR THE WALL STREET JOURNAL
In the five decades since its
Broadway premiere, “Fiddler
on the Roof” has become celebrated as the quintessential
Jewish-themed
theatrical
work, a show so steeped in the
culture and religion that one
could argue it might as well be
performed in Yiddish.
And now it will be.
National Yiddish Theatre
Folksbiene, a New York-based
organization with a 103-year
history, says it will present a
“Fiddler” production in Yiddish in July at the Museum of
Jewish Heritage in lower Manhattan.
The company believes it is
the first time the 1964 show,
which is based on the writings
of the Yiddish author Sholem
Aleichem and tells the story of
the milkman Tevye and his
daughters, has been presented
in Yiddish in the U.S.
“It feels like ‘Fiddler’ is
coming home,” said Chris
Massimine, the company’s
chief executive officer.
The original Broadway
“Fiddler” production won several Tony Awards, including
for Best Musical and for Zero
Mostel’s performance as Tevye.
The show has been repeatedly revived on Broadway, including a production, directed
by Bartlett Sher, that opened
in December 2015 and ran for
a year.
Details about the casting
and exact dates are still to be
announced. But Mr. Massimine
said Sheldon Harnick, the
show’s lyricist and a member
of National Yiddish Theatre
Folksbiene’s artistic council,
will serve as an adviser for the
production.
Non-Yiddish speakers can
rest easy: The company will
present the Yiddish “Fiddler”
with English supertitles.
More New York City restaurants are offering goose, a traditional European holiday dish, this season
Chef Thomas Slivovsky prepared a goose, featured on the prix fixe holiday menu at Paulaner on Bowery, a German restaurant.
by a new generation of diners in New York.
Pat LaFrieda, whose New
Jersey-based namesake company supplies meat to many
high-end restaurants in New
York City, likens the trend to
what already has happened
with rabbit and venison in
recent years.
“You’ve had this desire to
go back to the older dishes,”
he said.
Tips for Preparing
The Perfect Bird
Want to roast a goose at
home for the holiday season?
Here is what Jim Zola, senior
meat coordinator for Whole
Foods in the Northeast, said
to keep in mind:
Get the right size: Figure
1½ pounds of raw weight per
person. So, for a gathering of
10 people, look for a 15-pound
bird.
Follow traditional poultry
preparation: Remove the
neck and giblets, then rinse
the bird inside and out and
pat dry with paper towels.
Transfer the goose to a roasting pan and prick the skin
with a paring knife, then season generously with salt and
pepper. Tuck in legs or tie
them together with kitchen
twine.
And for the cooking time:
Roast the bird at 375 degrees
Fahrenheit for 15 minutes per
pound. Save some of the rendered fat for preparing side
dishes. When finished, rest
the goose for about 30 minutes before carving.
About those side dishes:
Root vegetables, cooked with
that rendered fat, is a great
way to go.
I
t also doesn’t hurt that
so many prominent European chefs, who are naturally versed in cooking
goose, are establishing themselves in the city. One such
newcomer is Antoine Westermann, the Michelin-starred
French chef who opened Le
Coq Rico, a poultry-themed
restaurant, in the Flatiron
District.
Le Coq Rico has goose on
its Christmas Eve and Christmas Day menu, a $98 prix
fixefixe affair. The bird is
prepared with a house-made
stuffing that incorporates
more than 10 ingredients,
from pepper to pork loin.
Mr. Westermann says he
“I was surprised to see so
many people eating it,” he
said.
Still, goose isn’t for everyone, chefs and others warn.
Americans who are more
used to turkey may find it
too gamy for their liking.
And for those who opt to
prepare it at home, it certainly isn’t as cheap as that
supermarket-grade turkey.
For mail-order customers,
D’Artagnan charges up to
$199.99 for a bird. Whole
Foods has geese for $7.99 per
pound, with bird weights
that average 6-10 pounds, at
its New York City-area stores.
Jim Zola, senior meat coordinator for Whole Foods in
the Northeast, says as gourmet shoppers continue to expand their palates, the goose
trend is likely to grow.
“I could certainly see
these birds becoming more
popular in holiday seasons to
come,” he said.
ly
.
BY CHARLES PASSY
For Christmas Dinner, This Fowl Is Fair
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
All-Yiddish
‘Fiddler’
Will Open
In Summer
didn’t anticipate much interest in goose when he introduced it on last year’s holiday menu. But the demand
was there, prompting him to
bring it back.
GREATER NEW YORK WATCH
CULTURE
CONNECTICUT
n-
A Connecticut State Police
bloodhound is missing after being
involved in the search for a man
in Danbury. Police say the dog,
named Texas, was part of a
search party Wednesday evening
looking for the man with autism
who was missing in the woods
near Wooster Mountain. Another
bloodhound located the missing
man. But during the search a handler dropped the 15-foot leash
connecting the trooper to Texas.
—Associated Press
Texas the bloodhound
no
Marcelo Gomes, a high-profile
principal dancer at the American
Ballet Theatre, has resigned
amid an investigation into an allegation of sexual misconduct
eight years ago.
American Ballet Theatre said
Thursday it initiated an independent investigation after learning
of a “highly concerning” allegation about Mr. Gomes on Saturday. “ABT does not tolerate the
alleged behavior,” the company
said.
American Ballet Theatre said
the alleged misconduct didn’t involve any current or former
members of the company and
didn’t occur while he was an
employee.
A spokeswoman for the
dancer said: “This is a time of
reflection for Marcelo. He is
gratified and strengthened by
the support he has received
from family, friends and colleagues.”
—Associated Press
CONNECTICUT STATE POLICE/ASSOCIATED PRESS
Ballet Dancer Resigns State Police Search
Amid Investigation
For Lost Bloodhound
Parisian Snow Day
NEW JERSEY
Edouard Léon Cortès
Democratic Gov.-elect Phil Murphy says he is naming a former
acting Environmental Protection
Agency director to lead New Jersey’s counterpart department.
Mr. Murphy said Thursday
that Catherine McCabe is his
pick to lead New Jersey’s Department of Environmental Protection. Ms. McCabe briefly
served as the EPA’s active director this year.
—Associated Press
Breathtaking cityscape Celebrated artist.
Distinctive style. This original oil by the
great Edouard Léon Cortès captures a
snowy evening in Paris, with the iconic
Fontaine du Palmier in the background.
Dubbed the “Parisian Poet of Painting,”
Cortès devoted most of his career to
capturing the vital energy and beauty
of The City of Lights. Today, Cortès
continues to be praised as one of the great artists of the Belle Époque,
and collectors increasingly seek his important paintings. Signed (lower
right). Canvas: 18”h x 241/4”w; Frame: 28”h x 311/4”w. #30-7155
Sterling Project Development is run by the family that
owns the New York Mets. An
article Thursday about the
New York Islanders returning
to Nassau County incorrectly
said the family owns the Met.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
TUDOR
CORRECTIONS AMPLIFICATIONS
BORN TO DARE AND BLACK BAY ARE ® TRADEMARKS. NEW YORK.
Former EPA Official
To Head State Agency
BLACK BAY
630 Royal Street, New Orleans, Louisiana • 888-867-9583 • ws@rauantiques.com • rauantiques.com
Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
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THE WALL STREET JOURNAL.
A12 | Friday, December 22, 2017
LIFE&ARTS
TELEVISION REVIEW
By John Anderson
AMAZON PRIME VIDEO
Expedition
In the
Bedroom
FILM REVIEW | By Joe Morgenstern
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
Tasty, Nasty and
Right on the ‘Money’
EVERY CHRISTMAS season
needs a good Scrooge. You’ll be
pleased to know we have one in
the pinchpenny person of J. Paul
Getty, who pinches countless billions while refusing to pay a
penny of ransom for his kidnapped grandson in “All the
Money in the World.”
Ridley Scott’s film was brought
back from the dead, with surprising success, by a last-minute star
transplant. As everyone—all right,
almost everyone—knows by now,
Kevin Spacey had completed his
starring role as Getty, the richest
man of his time, or perhaps of
any time; then came the actor’s
suddenly public disgrace. Six
weeks before the production’s
scheduled release, Christopher
Plummer was brought in to reshoot Mr. Spacey’s scenes, and he
has done so with such luscious
lust and gleeful gusto that it’s
hard to imagine anyone else playing the part.
This is one of those dramas
“inspired by true events,” meaning that David Scarpa, who based
his screenplay on the true-crime
book by John Pearson, took sufficient liberties to make the story
lots of fun. Not feel-good fulfilling—only one person in it is likable, and we’ll get to her in a moment—but expansively,
melodramatically entertaining,
with a scarier-than-life portrait of
a geezer with a partial soul. Getty’s body
isn’t inhabited by a fully fledged spirit. His
capacity for love is confined to money, or
the things it can buy, and he values those
things for their thingness, the reliability of
their inability to trouble him with unexpected demands of empathy, compassion or
generosity. (Getty was, in fact, philanthropic, but on his own terms.) Instead of
the man in the glass booth—that was Adolf
Eichmann, who had no soul—he’s the man
with the phone booth, which he installed in
his English mansion so his guests could pay
for their calls.
From top: Michelle Williams as Gail
Harris and Mark Wahlberg as
Fletcher Chace (center right);
Christopher Plummer as J. Paul
Getty; and Ms. Williams in Ridley
Scott’s ‘All the Money in the World.’
no
n-
ONE MIGHT DETECT a hidden agenda
behind “The Last Post,” in which an imperial Western power tries to maintain
its foothold in a Mideast land, fights an
Islamist insurrection it doesn’t understand, resorts to torture, and embarrasses itself in the eyes of the world. But
one would be wrong. There’s nothing
hidden about it at all.
Attempting to mirror more contemporary political catastrophes, the six-part
series, arriving on Amazon by way of
the BBC, is set in 1965 Aden, now in Yemen, but once a British Crown Colony
(and, as the crackly old newsreel intro
says before each episode, a place where
“the sand is warm, and the sharks are
not always hungry”). The socio-sexual
side of the story is the real point of it
all, and there’s a certain sauciness
therein. But the military aspects of the
tale are almost too familiar—what’s depicted in Aden is, in microcosm, the
British crisis of colonial conscience, one
that separates the more enlightened
members of the happy breed from their
myopically monarchist and hidebound
compatriots. In some ways, in fact, “The
Last Post” might make tidy companion
viewing with “The Crown”: While Elizabeth Rex is perspiring over Prince
Philip’s philandering, her subjects are
sweating up the desert, trying to hold
her kingdom together.
But for all the political déjà vu, we do
get characters we don’t quite expect,
courtesy of writer Peter Moffat, whose
“The Night Of” was so rich in complicated people and circumstances. Lt. Ed
Laithwaite (Stephen Campbell Moore), for
instance, is that uncommon thing in fiction, outside of George Smiley: a sympathetic cuckold. He’s been passed over for
the captaincy of his Aden-based Royal
Military Police unit, which enjoys a rather
beachy Sandals lifestyle when not being
shot at or beheaded. But Ed’s not really a
team player anyway: Developing his own
investigative sources and urging a policy
of persuasion/seduction over enhanced
interrogation, Laithwaite is making real
headway against the insurrectionist National Liberation Front and its ruthless,
bespectacled, Zarqawi-esque leader, Abdul-Kadir Hakim (Aymen Hamdouchi). His
biggest obstacle, of course, is institutional pigheadedness. That, and his wife.
Alison Laithwaite (Jessica Raine),
slinky and unsatisfied, may be only the
second-most-interesting character in
“The Last Post,” but she sucks all the air
from whatever room she stumbles into. A
scene-making alcoholic—she seems to
have bottles everywhere—Alison has
been sleeping with the unit’s commanding officer, Nick Page (Joseph Kennedy),
and is more distraught about his transfer
than about the fact that her behavior
may have cost her husband his promotion. She also takes great joy in “educating” Honor Martin (Jessie Buckley), an
Please see TELEVISION page A13
SONY PICTURES (3)
Jessie Buckley and Jeremy Neumark Jones
in ‘The Last Post.’
The story begins in Rome, in 1973, with
what looks like a sequence from a blackand-white Fellini extravaganza. (Mr. Scott, a
resourceful filmmaker if ever there was one,
seems to be having a good time here.) Little
by little the images go to color, while the
action goes to the kidnapping, by masked
thugs, of Getty’s favorite grandson, 16-yearold John Paul Getty III (Charlie Plummer, no
relation to Christopher). In a normal movie
about a normal crime of this category, the
next step would involve negotiation. Not in
this case, though. When grandpa gets the
news, his response to his secretary is a terse
“I’m not available.” Thus begins
the real drama, with Getty stonewalling the kidnappers stoneheartedly, and being beseeched to
behave like a human being by
Paul’s mother, Gail Harris, who is
played by Michelle Williams.
If you’re an admirer of Ms. Williams’s work, and who isn’t,
you’re in for a surprise as well as
a treat. She has a complex role to
play—Gail is smart, determined
and principled—and she plays it
with a crisp sophistication worthy
of Katharine Hepburn, though
there’s also a bit of Julie Harris in
her voice. This is not to suggest
that Ms. Williams is borrowing,
imitating or channeling, only that
what she brings to the role is
fresh and new, and that she has
made Gail a fascinating combatant—the ardent, human side of a
duel with an insatiably acquisitive
devil (who, in fairness, also displays quasi-human traits that Mr.
Plummer has brought to his side
of the combat).
The supporting cast is led by
Mark Wahlberg and Romain
Duris. The former plays Fletcher
Chace, an unscrupulous former
CIA operative in the service of Getty—at
least until he meets Gail, and embraces
scruples. The latter is Cinquanta, the leader
of the kidnappers and a significant figure in
the action-adventure phase of the movie,
when a police trackdown turns erratic and
operatic. “All the Money in the World”
doesn’t have anything profound to say about
riches, or the psyches of the super-rich, but
instruction isn’t the point. It’s worth all the
money you may pay for a ticket to watch
Mr. Plummer’s Getty say “There you are,
beautiful child” when no living or breathing
child is in sight.
THEATER REVIEW | By Terry Teachout
JOAN MARCUS
THE MADNESS
OF PHILIP V
Iestyn Davies, Mark Rylance, Huss Garbiya and Melody Grove in ‘Farinelli and the King.’
New York
HOW GOOD must a show be to make
it worth seeing? I found myself asking
this question on the way home from
“Farinelli and the King,” the new play
by Claire van Kampen that has brought
Mark Rylance back to Broadway. On paper, “Farinelli” is scarcely more than a
tissue-thin vehicle for Mr. Rylance,
whose star-turn performance is a
quirky catalog of his usual stage tricks.
By all rights it ought not to work at
all—yet “Farinelli” still contrives to
cast an odd spell on the viewer, and its
best moments have a delicate beauty
that will stay with you.
Part of what makes “Farinelli” memorable is its subject matter. It’s a history
play about one of the most mysterious
relationships in the history of classical
music—that between Spain’s King Philip
V (referred to in the play as “Philippe”
and played by Mr. Rylance), who suffered from what is widely thought to
have been an incapacitating case of
manic depression, and Farinelli, the legendary 18th-century Italian castrato,
whose exquisite singing eased the king’s
suffering. In 1737, the 32-year-old
Farinelli abandoned his operatic career
to become Philippe’s court musician,
and never sang in public again. Not at
all surprisingly, his improbable life has
already been portrayed in a biopic and
several operas. Now comes Ms. Van
Kampen, Mr. Rylance’s wife and the
longtime house composer at ShakePlease see THEATER page A13
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.
Friday, December 22, 2017 | A13
LIFE & ARTS
THEATER
Fensom, it is closely similar in
approach to the Elizabethan-style
stagings of “Richard III” and
Continued from page A12
“Twelfth Night” that Mr. Rylance
and the Globe brought to Broadspeare’s Globe, who had never beway in 2013, only fancier. The
fore written a play but became so
proscenium stage of the Belasco
fascinated by Farinelli that she
Theatre is lighted with candles
decided to take a fresh crack at
and fitted out with boxes, and a
putting him on stage. First perseven-piece period-instrument
formed at the Globe in 2015, her
band accompanies Farinelli in
debut was a critical and commereight lovely Handel arias that are
cial success that subsequently
not unlike the kind of thing the
transferred to London’s West End
and has now arrived on Broadway. real-life Farinelli might have
sung. Moreover, Ms. Van Kampen
As has been widely noted,
and John Dove, the director, have
“Farinelli and the King” bears a
had the ingenious idea of using
decided family resemblance to
two performers, Mr. Crane and
Alan Bennett’s “The Madness of
Iestyn Davies, the British counGeorge III” (with a bit of “The
tertenor, to play Farinelli.
King’s Speech” stirred in to
Each time Mr. Crane
sweeten the pot). This
opens his mouth to
close resemblance
sing, Mr. Davies
underlines the chief
appears onstage
weakness of Ms.
as if by magic,
Van Kampen’s
filling the air
play, which is
with sounds of
that none of her
unearthly beauty.
characters ever
Whenever that
say anything inhappens, it’s easy
teresting or memoto believe that
rable. A playwright
Farinelli’s singing was
like Mr. Bennett or
capable of curing
Tom Stoppard would
any ailment short
Mark Rylance and
have given them diaof end-stage cancer.
Melody Grove in
logue that exteriorThe result is a
‘Farinelli and the King’
ized the rich comshow that is all
plexities of their
frosting and no cake. Still, the
inner lives, but Ms. Van Kampen’s
frosting is the very best butter
Farinelli, played by Sam Crane, is
cream, and thanks to Mr. Davies’s
an inscrutable stick figure, while
singing and Mr. Dove’s staging,
her Philippe is a walking thesau“Farinelli and the King” manages
rus of stage-madness clichés
to circumvent its dramatic defi(“This is my dream, not yours—
ciencies and hold your attention—
stay out of it”). Nor does her plot
if you love music. I would have
have any dramatic tension: It unpaid to see and hear Mr. Davies’s
folds in a wholly surprise-free
flawlessly staged performance of
manner, taking every possible op“Lascia ch’io pianga,” which
portunity to be obvious.
brings the evening to its haunting
This brings us to Mr. Rylance,
close. If, on the other hand, bawho is at his best when playing
roque arias sung by countertenors
strongly defined characters, as
leave you cold, I can’t imagine
he does in “Bridge of Spies” and
that you’ll get much out of it,
“Dunkirk.” In the absence of firm
save for an overwhelming desire
authorial guidance, his acting is
to attend a first-class revival of
apt to dissolve into a cloud of
“The Madness of George III.”
twee mannerisms, which is what
happens here. These mannerisms
Farinelli and the King
are all too familiar from his preBelasco Theatre, 111 W. 44th St.
vious New York stage appear($32-$169), closes March 25, 2018
ances, enough so that I finally
212-239-6200/800-432-7250
felt like yelling “Stop throwing
away your lines—just try speakMr. Teachout is the Journal’s
ing them, will you?”
drama critic. “Billy and Me,” his
What, then, makes “Farinelli
new play, runs at Palm Beach
and the King” worth the price of
Dramaworks through Dec. 31. Write
the ticket? The production, for
to him at tteachout@wsj.com.
openers. Designed by Jonathan
FILM REVIEW | By Joe Morgenstern
Drawing Dead With
All-In Dialogue
nal defense attorney who takes her
on, reluctantly at first but then
with splendid fervor.)
In his screenwriting capacity
Mr. Sorkin celebrates gambling argot—one hears undertones, overtones and plain old tones of David
Mamet and Damon Runyon. As a
director, he feasts on players’
faces, and their folkways, which include revenge rituals of the Russian mob. His cruise through a velvet netherworld, guided by Molly
and elucidated by poker-hand
graphics, is entertaining enough,
co Fo
m rp
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er rs
ci on
al a
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on
her clients keep trying to get back
to even. But all of that is recollection and recapitulation. The present-time drama, with ruthless people going at each other ruthlessly
—people going at each other is a
pretty good description of
drama—doesn’t gather force until
her trajectory turns downward.
That’s when the feds close in and
Molly, with Charlie’s support,
starts fighting for her life, her fortune and her future. (In one electrifying confrontation, Charlie, a
former prosecutor, makes her case
to a couple of U.S. attorneys who
want to strip her of everything
but her syntax.)
“Molly’s Game” proves some
things we knew and some things
we didn’t. Ms. Chastain has burnished a reputation as a passionate actress (”Zero Dark Thirty,”
“The Tree of Life”) who’s also brilliant technically, and this adds to
it; the burnishing here has less
depth than gloss, but that’s the nature of her character. No one knew
Mr. Sorkin was a good director,
but he is, and his filmmaking
chops come topped with intelligence and curiosity. That makes it
all the more remarkable, and I
don’t mean good remarkable, when
the film takes a last-reel turn into
slushy psycho-sappiness, enlisting
someone we thought we’d seen the
last of to explain what the story
was really about. The same sort of
explanation ended “Call Me by
Your Name,” and it was charming.
This is uncharming, but in one respect provocative. It does make
you rethink the role of that frozen
pine branch.
though repetitive and emotionally
inert. Also opaque, at times, unless
you know more about poker than I
do. The absence of feelings becomes most noticeable when there
is, briefly, someone to have feelings for—a player named Harlan
(another fine performance by Bill
Camp) who assumes, at his peril,
that an adversary can’t be as inept
as he seems.
The same pattern of emotional
famine leading to brief feasts applies to Molly herself. It’s coolly
fascinating to watch her in flashbacks—speaking supersonically,
surveying her table seductively,
powering ever upward while she
tries to stay honest and most of
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U.S. Forecasts
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Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
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Santa Fe
Seattle
Sioux Falls
Wash., D.C.
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35
81
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17 c
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15 s
30 c
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Tomorrow
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29 15 c
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65 43 pc
51 31 r
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57 35 pc
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47 22 pc
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International
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Brussels
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49 44 pc
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90 72 s
44 27 s
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49 46 pc
75 50 pc
79 66 s
53 47 pc
53 49 c
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
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The Last Post
Friday, Amazon
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Tomorrow
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48 44 pc
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54 43 s
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PUZZLE
CONTEST
66 Magnitogorsk’s
river
14
15
16
67 Wields a needle
68 Alma mater of
17
18
19
Newt Gingrich
33 Bricks for tots
20
21
22
69 Parlor works,
35 Univision anchor
briefly
Jorge
23
24 25
26
27 28
Down
36 Change with the
29
30
1 “Attack!”
times
2 Emmy winner
37 Harplike
31 32 33
34
35 36 37
Christine
instruments
38
39
3 Top players
43 Boston Brahmin
family who “talk
4 Stephen of “The
40
41
only to God”
Crying Game”
42
43 44 45 46
47 48 49 50
5 Miscalculate
44 Not yet
determined, for
6 Giving it another
51
52
short
go
53
54
45 Blackbird family
7 Neglect
member
8 To a significantly
55 56 57
58
59
60 61 62 63
46 Give a second
reduced degree
treatment, as a
9 Cardinals, on
64
65
66
beard
scoreboards
67
68
69
47 Stove feature
10 Cold or flame
48 How some
follower
bagels taste
11 West African
CONNECT THE DOTS | By Matt Gaffney
capital
49 “Hold on a sec,”
The answer to
20 LAX guess
42 “I’m not ___, but 12 Item in a
while texting
this week’s contest
I play one on TV”
21 Straight, in
museum, often
50 Umpire’s call
crossword is a
combinations
47 Comedian who
13 Rubbish
55 Network based in
seasonal carol.
lived to 100
22 Ocasek of the
Arlington
18 Line of police
Cars
51 Buick sold from
Across
56 Settlers of Catan
19 Laundromat
1959 to 2005
1 Driving hazard on 23 Copycat’s game
resource
24 “___ your side!”
52 States of civil
26 Recline
sunny days
25 ___ Field (where 57 Judy Sheindlin
disturbance
29 Kind of skirt
6 CD follower
studied it
the Mets play)
53 Deliberately taunt 27 Political journalist 59 Artistic Yoko
30 Wyoming
9 Decoration, e.g.
senator
Mike
54
Barbecue
joint
14 Food processor
Klein
61 Item of athletic
order
31 Main group, in the
15 Layer of green
wear
28 Sci. studied in
Tour de France
55 Sport played on
eggs
high school
62 Granola bar piece
grounds
16 Luge participant, 34 Like some
31 Peony piece
63 Johannesburgrelationships
58 New England
for one
born golfer
32 Sidestep
between women
college town
17 It’s round (like
38 Vespers time
60 You need a reed
the dots you
Previous Puzzle’s Solution
to play one
B A R
P A P A S
C A S K S
need to connect) 39 Women-only
A
L A
A N O S E
L I M I T
chain of gyms big 64 Recipient of coal
and associated
H O K E Y N O T E
A R E N A
in the 1980s
from Santa,
S T E N O
H O N E S T E G G
with Santa (like
T U G
A S I
perhaps
what you’ll create 40 Gift attachment
H O S T A G E F R I G H T
B
A
D
S
P
E
L
L
C H E A T
when you do)
41 Be a blemish on
65 Flax product
1
2
3
4
5
6
7
8
9
10
11
12
13
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, Dec. 24. A solver selected at random
will win a WSJ mug. Last week’s winner: Evan Birnholz, Philadelphia, PA.
Complete contest rules at WSJ.com/Puzzles. (No purchase necessary.
Void where prohibited. U.S. residents 18 and over only.)
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
35 29 pc 38 25 c
Atlanta
63 57 c
67 45 r
Austin
67 40 r
59 33 pc
Baltimore
54 47 c
60 37 r
Boise
35 27 sn 35 19 sn
Boston
34 33 sn 42 35 r
Burlington
24 22 sn 37 21 i
Charlotte
63 52 pc 70 47 r
Chicago
43 27 sh 35 18 pc
Cleveland
49 35 sh 40 26 c
Dallas
52 36 r
54 37 s
Denver
44 19 pc 36 12 sn
Detroit
39 32 sh 39 23 c
Honolulu
79 70 s
81 69 pc
Houston
80 49 c
61 41 pc
Indianapolis
56 33 sh 40 23 sn
Kansas City
38 21 pc 34 19 pc
Las Vegas
54 35 s
58 39 pc
Little Rock
63 41 r
51 32 c
Los Angeles
66 47 s
69 48 pc
Miami
84 69 s
83 67 pc
Milwaukee
39 26 c
31 15 pc
Minneapolis
23 10 c
18 8 pc
Nashville
62 52 r
53 36 r
New Orleans
79 63 c
71 52 r
New York City
49 46 c
53 38 r
Oklahoma City
40 25 c
47 26 c
Miami
80s
Continued from page A12
almost implausibly naive newlywed whose husband, Joe, is
Page’s new replacement (in the
unit, not the bed) and who himself exhibits the kind of pugnacious insecurity that is sure to
lead to trouble. That would include the kind of trouble presented by Martha Franklin (Essie
Davis), a Gellhorn-y American
journalist who shows up in episode 2 and comports herself like
nothing short of an Arab-speaking, Southern-fried hooker.
Not very subtle, no, which is
unfortunate because you expect
more sophisticated things from
Mr. Moffat. A bit obvious, too, are
the reasons for television’s current attraction to the stories from
the 1950s and 1960s in which
viewers can watch the oppressed—notably women—with a
knowledge that times will change,
however glacially. Conflict equals
drama; sexual conflict equals
more drama; conflict without a
surfeit of nuance is even better.
“The Last Post” has it all.
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.
d
Edmonton
TELEVISION
JOAN MARCUS
Aaron Sorkin’s
directorial debut takes a
seat at the high-stakes
poker table
n-
AARON SORKIN gives new meaning to The Talkies. A wordsmith
who leaves no one speechless and
no zippy phrase unturned, he’s got
a gift for gab that goes beyond
logorrhea and prolixity into rat-atat felicity. In the past he has written scripts for others to direct—
“The Social Network” and “The
West Wing,” among many others.
Now, in a move that was overdue,
he’s making his directorial debut
with “Molly’s Game,” a tale of
poker and high rollers that he
adapted from the memoir by Molly
Bloom. Given the movie’s high verbal revs—more words per minute
than most mouths can pronounce—ideal casting for the title
role might have been an auctioneer. Instead, we have Jessica
Chastain, whose performance is as
amazing as her phonation.
For a film that plays out mainly
in the ritzier precincts of Los Angeles and New York, “Molly’s
Game” has a surprisingly cinematic preface, set on ski slopes
where Molly competes—with considerable promise—until a frozen
pine branch gets in her way. She
was raised to win, as she reflects
later. When skis won’t take her toward the success she craves, she
weaves her way, via waitressing
and other modes of temporary life
support, into a world of private,
stratosphere-stakes poker games
where she first recruits players,
for profit, then runs her own
games for greater profit but not
much glory; the feds finally sweep
her up in a RICO indictment. (Idris
Elba, sporting a lovely New York
accent, is Charlie Jaffey, the crimi-
ly
.
STXFILMS
Jessica
Chastain and
Idris Elba in
‘Molly’s Game’
A R E S
E
A S T E R
H O T I S
A V A
H O U S E D
I MH I T
D I O D E
E T H E R
N I A C
T H R O
S U E P
S
C A R
H O H U
A N E R
D E A N
B
A
H
A
M
A
S
T A
V
P E
E
N G
D R
A
B
T A
E X
R
L
U
L
U
E
M
I
T
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A14 | Friday, December 22, 2017
SPORTS
LeBron vs. All-Time Greats
LeBron James, who turns
33 next week, has played
31% more than Michael
Jordan at the same age.
How the 15th seasons of the NBA's Hall of Famers and future
Hall of Famers compare to LeBron James this season.
35 Player efficiency rating
LeBron James
Kobe Bryant
30
Hakeem Olajuwon
25
Karl Malone
Charles Barkley
Kareem Abdul-Jabbar
Moses Malone
20
Michael Jordan
Alonzo Mourning
15
10
Tracy McGrady
Clyde Drexler
Julius Erving
Dominique Wilkins
5
MINUTES PLAYED THROUGH FIRST 14 SEASONS
25,000
30,000
35,000
40,000
45,000
50,000
55,000
Notes: Data as of Dec 19; player efficency rating is a rating of a player’s per-minute productivity
THE WALL STREET JOURNAL.
Source: Basketball-reference.com
how smart he is.”
To watch him play now is to see
total control. James warps the
game to his will. He can slow
down when necessary and speed
up when necessary. What happens
is usually what James wants to
happen. “It’s like he’s pulling the
strings,” said James’s business
partner, Maverick Carter, the CEO
of SpringHill Entertainment and
Uninterrupted.
James’s biggest advantage is his
mind, and it has only become
more important as his game has
evolved. “It’s not that he’s gotten
smarter,” Carter said. “He’s more
in control of his brain.”
His court vision is sharper. His
shot distribution is shrewder. His
arsenal of tricks is fuller, and his
reservoir of knowledge is deeper.
He’s older, and if he’s not better
than he once was, it has become
undeniable that he’s still getting
better.
“The thing I love about LeBron
is that he’s a lifelong learner,” said
Duke coach Mike Krzyzewski, his
Team USA coach at the Olympics.
“He continues to want to learn
about his craft.”
And now something interesting
is happening.
For the majority of his life,
James has been compared with incredible players who came before
him, and it was always unfair to
him. It was like not being able to
enjoy sushi because it wasn’t
pizza. But his burden may soon be
his benefit. Because even the incredible players who came before
James are beginning to pale in
comparison.
James has played 31% more
than Michael Jordan at the same
age, and he’s already played thousands of minutes more than Jordan in his entire career. Jordan
was a shadow of himself by his
15th season. It’s rare for any Hall
of Famer to play 15 seasons. It’s
unprecedented for someone to
reign over the league in his 15th
season.
So how is he doing this? How is
he still doing this?
James himself offered the latest
explanation: His ultimate goal is to
beat the aging process. Which is
why the second half of his career
may be as transformational as the
first. He wants to change the way
the league behaves—again.
“Hopefully I can break the
mold,” he said, “so when the next
guy comes, he can still get $200 or
$300 million and be 33 years old.”
The only problem for the next
guy is that he won’t be LeBron
James.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ly
.
the way the league was revolutionized by shooting is that he’s never
been an outstanding shooter. He
never had to be. But the subtle
tweaks he made to his mechanics
during three-a-day workouts over
the summer have paid off. He’s
now shooting a career-high 41% on
threes—which means James is quietly a more accurate 3-point
shooter this season than Stephen
Curry.
And it isn’t only that he’s a better 3-point shooter than ever.
James is also a better 2-point
shooter than ever.
His percentage inside the arc is
the highest of his career, and he’s
making 77.9% of his field goals in
the restricted area. The few players who are that unstoppable
around the basket only take half as
many shots as James.
If there is one metric that explains how dominant he’s been—
and how astounding it is that he’s
still this dominant—it’s his effective field-goal percentage of 62.8%.
In his four MVP seasons, the years
when he was too good to take for
granted, James’s effective fieldgoal percentages were 53%, 54.5%,
55.4% and 60.3%. He’s now more
efficient than the most efficient
versions of himself.
But enough with his scoring.
James is the NBA’s best player in
part because he might be the best
passer. He’s on his way to career
highs in assists (9.3 per game) and
potential assists (18.7 per game),
and even more revealing is his assist rate, the percentage of his
team’s field goals he assists while
on the court. His career assist rate
is 35%. His career-high assist rate
is 41.8%. His assist rate this year is
45.4%.
He knows how his teammates
like their passes. He knows where
they like their passes. He even
knows when to make his passes.
“I can see plays happen before
they actually happen,” James said.
That’s because he is a basketball
genius. The esteemed LeBronologists who have studied his game
and appreciate its complexities understand what makes it work: his
intelligence.
His old high-school coach Keith
Dambrot, for example, would introduce a play at practice. James
would process the information almost immediately. He could play
all five positions and tell everyone
on the court where they were supposed to be and why.
“And I’m talking when he was
14 years old,” said Dambrot, who
is now Duquesne’s coach. “You’d
have to be an idiot not to notice
NBA
LeBron James: Better,
Stronger, Older
It’s the most remarkable plot of this NBA season: In his 15th season,
James is still the league’s best player. Here’s how his game has evolved:
no
LEBRON JAMES is getting old.
He turns 33 next week.
He’s showing all the usual signs
of aging. He’s more vocal about
politics. He’s extremely opinionated and incredibly picky when it
comes to wine. And what he’s
gained in wisdom he’s lost in hair.
But he’s also LeBron James.
There is nothing usual about him.
Somehow, in his 15th season, after
seven consecutive trips to the Finals, having worked more than
anybody in NBA history at his age,
as everything we thought we knew
about longevity, performance and
the limits of the human body
would suggest he should be getting worse, the best player on the
planet is still getting better.
It was reasonable to believe
that James was in his prime when
he won two NBA championships
and MVP awards with the Miami
Heat.
It seemed like he’d peaked. And
then he kept climbing. His numbers this season aren’t merely
good for most NBA players.
They’re good for LeBron James.
He’s very much in the conversation for his fifth MVP, and the
Cleveland Cavaliers are once again
title contenders even after trading
Kyrie Irving and waiting for Isaiah
Thomas. All they have done since
their puzzling 5-7 start is win 18 of
20 games. They play the Golden
State Warriors on Christmas in
what should be the highest-rated
game of the NBA’s regular season,
and while the Boston Celtics and
Houston Rockets have ascended
into their stratosphere, a fourth
consecutive Finals between the
Warriors and Cavaliers still feels
likely. It’s almost entirely because
n-
BY BEN COHEN
of one player.
“I’ve run out of ways to explain
his greatness,” Cleveland guard
Kyle Korver said.
So let us count the ways.
James is much better than the
league’s oldest players, and he’s
much older than the league’s best
players.
The most productive NBA stars
in terms of value above the replacement player this year averaged 16,000 career minutes coming into this season. James was
the only one above 32,000 minutes—and he’d logged more than
50,000 minutes. There’s a difference of six full seasons, at the very
least, between James and the others in his class. And to say they’re
in his class is generous: James is
far and away No. 1 in the VORP
rankings.
The irony of James ruling this
era that will be remembered for
THE COUNT
MINNESOTA VIKINGS: THE TEAM THAT IS DEFYING THE ODDS
The Color of Money Is Purple
The best and worst NFL teams against the point spread (ATS) since the 2013 season:
TEAM
1. Minnesota
2. New England
3. Cincinnati
4. Carolina
5. Kansas City
6. Green Bay
31. Cleveland
32. Tennessee
ATS 2017
ATS SINCE 2013
COVER % SINCE 2013
10-4
9-5
7-7
9-5
8-6
7-7
3-11
6-7-1
52-27
53-33-2
44-33-4
46-36-2
45-36-1
46-37-3
28-48-2
26-47-5
65.8%
61.6%
57.1%
56.1%
55.6%
55.4%
36.8%
35.6%
Source: TeamRankings.com
He’s won nine of 12 starts replacing injured Sam Bradford, and ranks eighth
in the NFL with a 98.9 passer rating.
The Vikings defense has complemented Keenum’s passing by allowing
a second-best 17.3 points per game.
It’s probably not a surprise that the
Patriots are the next best bet in the
period, with a 53-33-2 record (including
playoffs). Although that’s a success
rate of 61.6% against the point spread,
New England’s actual record on the
field during the span is 69-19 (78.4%).
At the other end of the spectrum is
the Tennessee Titans. Pity Titans fans
who bet with their hearts. Tennessee
is an NFL worst 26-47-5 against the
spread including 6-7-1 this year. That’s
just a 35.6% winning percentage. The
only other team under 40% is the
Cleveland Browns, who can’t even win
when the oddsmakers try to handicap
their games. This year, the league’s
only winless team is also an NFL worst
3-11 after getting the points.
—Michael Salfino
The Vikings’ Jerick McKinnon, left, celebrates with Jeremiah Sirles.
(T-B) KEN BLAZE/REUTERS; CURTIS COMPTON/TNS/ZUMA PRESS
There’s no shortage of experts
seeking to crack the code when it
comes to the seemingly random nature of predicting NFL games. But
the secret to beating the odds is
actually pretty simple: Put your
money on the Minnesota Vikings.
The Vikings are far and away
the NFL’s best team when it comes
to exceeding expectations, covering
the point spread 52 of 79 times
(65.8%) since the start of the 2013
season, according to TeamRankings.com. The break-even point in
betting on football is 52.4%, due to
the cut that bookmakers take on
wagers. No other team has had a
winning record against the spread
in each of the last five seasons,
while only nine other teams have
beaten the break-even mark since
2013. This season, the Vikings are
tied with the Eagles for the best
record against the spread, 10-4.
The Vikings have been such
great value this year relative to the
oddsmakers’ forecasts mainly because journeyman quarterback Case
Keenum has unexpectedly thrived.
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.
Friday, December 22, 2017 | A15
THE WALL STREET JOURNAL.
OPINION
The left and the press
foretold disaster for
the middle class. Such
claims will be tested.
Trump Tries to Defy Economic Odds.” Business Insider: “Americans have already made up their minds
about the tax bill—and it
looks brutal for the GOP.”
To read all this coverage,
you’d be justified in believing
that the entire Republican
Party had been hit with a stupid stick. Its members united
to jack up the taxes of millions of middle-income voters,
throw the country into recession, and saddle today’s toddlers with a future debt crisis—all to enable the transfer
of tax plunder to fat-cat donors. And not only did it pass
this colossally idiotic policy,
it did so enthusiastically, in
full view of the public—guar-
Sens. Jeff Flake and Ben
Sasse, love Mr. Trump so
much that they were willing
to spend all fall on a bill for
his personal enrichment.
They are running with
these upside-down-world stories because so far they’ve
gotten away with it. The tax
bill has been but a theoretical
proposition up to now, defined by press coverage. A recent Monmouth poll showed
that 50% of Americans think
their taxes will go up under
this reform (the actual proportion is estimated at 5%).
No wonder approximately
50% of Americans disapprove
of the reform.
The left and its media enablers got away with their
Hillary fictions, too—until
they had to report Donald
Trump’s victory. The risk for
the GOP here is that the early
impression that this tax cut is
“bad” could remain stuck in
American minds.
Then again, those $1,000
AT&T and Comcast bonuses—
destined for hundreds of
thousands of workers—are
quite real. By February, the
Internal Revenue Service
should have recalculated its
withholding formulas so millions of workers will be taking home larger paychecks. In
the months that follow, the
country should begin to see
the early benefits of new U.S.
investment—in jobs, benefits,
and opportunity.
Whatever happens, the
anti-tax-reform campaign is a
reminder to Republicans of
the unprecedented hostility
they face in the age of
Trump. The best way to triumph in this war of spin is to
produce real policy results
that help real people—as they
just did with tax reform, no
matter what you read to the
contrary.
Write to kim@wsj.com.
AARON P. BERNSTEIN/REUTERS
anteeing a 2018 GOP midterm
wipeout. What dimwits!
This is the Democratic line,
and the media is embracing
it. Chuck Schumer and Nancy
Pelosi bet that the GOP would
fail to enact tax reform, so
they pressed their members
to boycott negotiations. Instead, Republicans are delivering bigger paychecks and
the prospect of accelerated
economic growth, and not a
single Democrat can take
credit. The Democratic Party’s
only path is therefore to spin
an obvious GOP victory into a
disaster. The press, with all
its biases and insularity, once
again is all in, with another
attack on reality.
Nearly every story quotes
a variation of Mrs. Pelosi’s
line that the bill is “wholesale
robbery of the middle class.”
Mr. Schumer continues to
claim the reform helps “only
the wealthiest few.” These are
Trumpian-size
whoppers,
which the media eagerly repeats. Yet even the liberal Tax
Policy Center has acknowledged that 90% of the middle
class will get a tax cut in
2018, and that the average
cut will be $1,600.
USA Today was so desperate to depict the bill as a tax
hike that its analysis of “5
household situations” included a childless single
renter earning $1 million a
year, paying $50,000 in state
and local taxes, and claiming
$40,000 in charitable deductions. The paper triumphantly pointed out that this
downtrodden soul would pay
$1,887 more in taxes. And
therefore have to forgo a
bottle of Chateau LafiteRothschild.
Democrats spent months
insisting that corporations
would pocket their tax cuts
rather than invest in their
workers. The press continues
Chuck Schumer
to parrot this line—even as
AT&T, Comcast, Wells Fargo
and others immediately announced bonuses, pay hikes,
higher starting wages, better
benefits and plans for new
hiring. Democrats call these
PR stunts, but so what?
Workers are benefiting.
The left and the press
claim the bill—which abolishes ObamaCare’s individual
mandate starting in 2019—
will throw 13 million people
off health care. They don’t
seem to know any of the millions of Americans who will
be relieved from paying a tax
that can run more than
$2,000 a family for being uninsured. The left and the
press belittle the average cut
as “only” $100 a month.
They are out of touch with
millions of solidly middle-income Americans who follow
tight budgets. A hundred
dollars can be enough for piano lessons, a family night
out or new winter coats. The
left and the press are suggesting the reform will primarily
benefit
Donald
Trump’s empire—as if the
Republican caucus, including
The Salvation of ‘Napalm Girl’
HOUSES OF You may not ceiving treatment for the I had so much hatred and bit- communist Vietnam. I had alWORSHIP
recognize me burns that cover my arms, terness in my heart. Yet I was ways assumed that to flee was
back and neck. But even worse
than the physical pain was the
emotional and spiritual pain.
For years I bore the crippling
weight of anger, bitterness and
resentment toward those who
caused my suffering. Yet as I
look back over a spiritual journey that has spanned more
than three decades, I realize
the same bombs that caused so
much pain and suffering also
brought me to a place of great
healing. Those bombs led me
to Jesus Christ.
My salvation experience occurred on Christmas Eve. It
was 1982. I was attending a
special worship service at a
small church in Vietnam. The
pastor, Ho Hieu Ha, delivered a
message many Christians
would find familiar: Christmas
is not about the gifts we carefully wrap and place under a
tree. Rather, it is about the gift
of Jesus Christ, who was
wrapped in human flesh and
given to us by God. As the pastor spoke, I knew in my heart
that something was shifting
inside of me.
A decade removed from the
defining tragedy of my life, I
still desperately needed peace.
no
now, but you
almost certainly know
who I am. My
name is Kim Phuc, though you
likely know me by another
name. It is one I never asked for,
a name I have spent a lifetime
trying to escape: “Napalm Girl.”
You have probably seen my
picture a thousand times. Yes,
that picture. The image that
made the world gasp. Some
called it a turning point in the
Vietnam War—a Pulitzer
Prize-winning photograph of
me in 1972, age 9, running
along a puddled roadway in
front of an expressionless soldier. I was photographed with
arms outstretched, naked and
shrieking in pain and fear, with
the dark contour of a napalm
cloud billowing in the distance.
My own people had dropped
bombs on Route 1 in an effort
to cut off the trade routes for
the Viet Cong rebels. I had not
been targeted. I had simply
been in the wrong place at the
wrong time.
Those bombs have caused
me immeasurable pain over
the course of my life. Fortyfive years later I am still re-
n-
By Kim Phuc
Phan Thi
ready for love and joy. I
wanted to let go of my pain. I
wanted to pursue life instead
of holding fast to fantasies of
death. When Pastor Ho finished speaking, I stood up,
stepped out into the aisle, and
made my way to the front of
the sanctuary to say “yes” to
Jesus Christ.
I still need treatment
for the burns on my
arms, back and neck.
But my heart is healed.
When I woke up that Christmas morning, I experienced my
first-ever heartfelt celebration
of the birth of Jesus Christ. I
know what it is like to experience terror, to feel despondent,
to live in fear. I know how wearying and hopeless life can be
sometimes. After years in the
spiritual wilderness, I felt the
kind of healing that can only
come from God.
I had spent so much of my
life running—first from the
bombs and the war, then from
my only choice. Looking back,
I understand the path I had
been racing along led me
straight to God. Today I live at
ease. Yes, my circumstances
can still be challenging. But my
heart is 100% healed.
My faith in Jesus Christ is
what has enabled me to forgive those who had wronged
me—no matter how severe
those wrongs were. Faith also
inspired me to pray for my enemies rather than curse them.
It enabled me not only to tolerate those who had wronged
me but to love them.
No matter what type of pain
or sorrow you may be experiencing, as Christmas approaches, I encourage you not
to give up. Hold fast to hope. It
is hope that will see you
through. This peace I have
found can be yours as well. I
pray that it finds you this
Christmas.
Ms. Kim is the author of
“Fire Road: The Napalm Girl’s
Journey through the Horrors of
War to Faith, Forgiveness, and
Peace” (Tyndale Momentum,
2017). She lives in the Toronto
area.
Mistletoe Is an Endangered Species
By George Ball
C
hristmas season in the
Northern Hemisphere
coincides with the winter solstice, bringing the darkest of cold, gray days. Many
Americans compensate for the
gloom outside by setting up a
cheerful holiday scene inside:
a fire dances, candles flicker,
gold glints, silver glimmers,
holly glistens, poinsettias
pose. Lording over the merry
panoply is the Christmas tree,
spangled with lights, ornaments, tinsel and crowned by
a shimmering star.
But lately, when visiting
friends for December merrymaking, I’ve noticed something missing: mistletoe. This
poetic holiday adornment—a
sprig of green leaves and
white berries happily dangling
over the door at the home’s
entrance—is increasingly conspicuous by its absence, leaving many a rosy cheek unkissed. Where is the love?
Heaven knows, humankind
is a fickle lot. Yet mistletoe
has been valued for millennia.
The plant was prized by an-
Quiet,
Everybody
Silence
By Erling Kagge
(Pantheon, 144 pages, $19.95)
T
wenty-five years ago, the Norwegian adventurer
Erling Kagge trekked solo across Antarctica without a
radio (actually, the aviation company that flew him to
the coast insisted that he take one, and he did—but he
dumped the batteries in the plane’s trash bin). The experience of being alone for 50 days inspired this book: a meditation on the need for, and meaning of, silence.
As the subtitle (“In the Age of Noise”) indicates, the
notion of cultivating silence is mightily unfashionable as
well as hard to achieve. Mr. Kagge began by asking himself
the questions: “What is silence? Where is it? Why is it more
important now than ever?” He reckons that he came up
with 33 “attempts at answering them.”
Mr. Kagge has skied to the North Pole as well as its
southern counterpart, summited Everest, and sailed across
the Atlantic and back. He once did some urban exploring in
New York City, sneaking to the top of the Williamsburg
Bridge in the dark. He is a lawyer, a serious art collector
and a distinguished publisher (his own house brought the
book out in Norway). His previous six books include tomes
on exploration and art collecting.
He admits that he is as ready as the rest of us to busy
himself “with this or that, avoiding the silence.” He also
acknowledges the “fear of getting to know ourselves better.” But he argues that it is important to train the mind to
hear silence. In the Antarctic, he writes, “the quieter I became, the more I heard.” He recognizes, too, that the next
hardest challenge, after
walking to the South Pole,
is “to be at peace with
yourself.” He is optimistic,
despite the chaos that
reigns. “I believe,” he writes,
“it’s possible for everyone to
discover this silence within
themselves.”
He quotes contemplative
wisdom from a variety of
sources, from the rock band
Depeche Mode to the 19thcentury French novelist Stendhal (these two just a few lines
apart). Mr. Kagge also cites scientific studies in which subjects were left alone with no external stimuli. In one such, a joint venture between the University of
Virginia and Harvard, “nearly half of the subjects eventually
pushed on the button to administer an electrical shock in
order to reduce their silent time.”
“Silence” (fluently translated by Becky L. Crook) is a slim
volume at 144 pages, with a biggish font and lots of white
space, and it is as much object as book, something to be
handled and savored. It is illustrated with photographs and
paintings, many of the polar regions and all conjuring silence, if an image can (which it can); the production qualities are superb. Mr. Kagge is especially interested in visual
representations of his subject. “The most powerful scream
that I have ever experienced,” he writes, “is one that is void
of sound: The Scream by Edvard Munch.” Other practitioners referenced include the Serbian performance artist Marina Abramović, who famously sat for 736 hours at New
York’s Museum of Modern Art peering at visitors in silence.
co Fo
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m e
er rs
ci on
al a
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e
on
In the wake of
last
year’s
election, a humiliated press
corps
was
forced to rePOTOMAC assess, to explain how it
WATCH
had
gotten
By Kimberley
the presidenA. Strassel
tial race so
monumentally wrong. Conclusions: It
had been too blinded by its
own biases, too sheltered from
Middle America. It apologized.
It promised to do better.
Or not.
Yahoo News: “Meet some
victims of the Trump tax
bill.” Washington Post: “10
Reasons Democrats think the
tax bill will be a political
loser for Trump’s GOP.” New
York Times: “In Tax Overhaul,
BOOKSHELF | By Sara Wheeler
ly
.
Now, Tax Reform Gets Real
cient Greeks, Romans, Celts
and Norsemen for its purportedly magical properties. In
those bygone days, people
were rightly inspired by mistletoe’s season-defying vitality
in the stark, denuded winter
landscape. High in the treetops, it merrily flourished, a
blaze of bright foliage and
gleaming berries.
Why should you give
a hoot? For one thing,
think of the owls.
Druids believed that mistletoe banished evil and promoted animal and human fertility. Ancient Greeks thought
it was an aphrodisiac. Romans
endowed it with healing powers. Later, truculent Vikings
associated it with peace.
When enemies had a chance
encounter beneath a mistletoe-laden tree, they would lay
down their arms and keep a
truce until the following day.
Over time, the custom
evolved to suspend mistletoe
over a home’s entrance, a talisman of good will. Peace now
given a chance, the British upgraded the tradition to kissing
under the mistletoe, believing
that doing so augured marriage. Even if we moderns are
sometimes suspicious of a
Christmas kiss, what’s the
harm in continuing to hang
legendary greenery?
We moderns might also
complain that mistletoe, far
from being the charming emblem of legend, is a parasite.
Yes, the plant thrives by siphoning fluids and vital minerals from host trees, causing
them to decline and fall.
Nonetheless, mistletoe is a
parasite with benefits, more
Robin Hood than Robber
Baron. Scientists have even
designated it as a keystone
species, meaning one that is
crucial to its ecosystem.
Mistletoe’s berries and
flowers are especially attractive to birds, which not only
feed on its fruits and seeds
but are apt to take up residence in its dense evergreen
clumps, called “witches’
brooms.” These 2- to 3-foot
whorls of stems and leaves,
which dangle from tree
branches, are like an Airbnb
for the avian crowd. Owls especially like mistletoe, though
insects and discerning small
mammals find it cozy as well.
In Australia, 75% of bird
species that make arboreal
nests have been spotted living
in witches’ brooms. In southwestern Oregon, 90% of the
threatened Northern Spotted
Owl are contented broom residents. Rather than banishing
mistletoe, conservationists are
trying to preserve these crucial habitats. Indeed, mistletoe
is listed as an endangered
species. Tell an owl that you
consider mistletoe a parasite,
and it may hoot you out of
town.
So raise a glass to this oftmisunderstood natural benefactor—and put the mistletoe
back atop the door where it
belongs.
Mr. Ball is chairman and
CEO of W. Atlee Burpee Co.
and a former president of the
American Horticultural Society.
Erling Kagge’s solo trek to the South Pole in
1993—without a working radio—taught him of
the need to block out the noise sometimes.
The author has a sense of humor. “Having tried my hand
at internet dating,” he says, “I am inclined to agree with
Heidegger,” the philosopher having said that in order to
achieve nearness, we must relate to the truth, not to technology. Mr. Kagge is also not afraid to dive into contemporary culture: There is a section on “the drop,” the pause
near the beginning of a pop song when, after an introductory buildup, silence occurs before the main event.
There are truisms (“silence is an experience that can be
had for free”), and many of the sentiments are not original.
That doesn’t matter, but it might have been acknowledged.
For example, Mr. Kagge ends his book with “You have to
find your own South Pole.” A lot of people have said that.
Shackleton, for example, the polar explorer, said, “We all
have our own White South,” and Thomas Pynchon, who
didn’t go anywhere near the South Pole, wrote in his novel
“V.”: “You wait. Everyone has an Antarctic.” Sara Maitland’s
2008 “A Book of Silence” also champions the countercultural notion that silence is more than an absence of
noise, though, unlike Mr. Kagge, she emphasizes the role of
prayer. Curiously, both authors cite Rothko as a master of
the pictorial representation of silence.
A little of the sanctimony in these pages rings hollow.
After retailing an interview with Elon Musk, Mr. Kagge says:
“I am not so stupid as to compare myself to Elon Musk.
However, when I look back on my time as a publisher, the
only unusual thing I have done, on a completely different
scale to Musk, was to stand uninterrupted at the kitchen
sink and raise a few questions about sanctioned truths.”
As a publisher, Mr. Kagge has learned that it is possible
to sell hundreds of thousands of books “about knitting,
brewing beer and stacking wood” and links this fact, plausibly enough, to “a desire to return to something basic,
authentic, and to find peace, to experience a small, quiet
alternative to the din.” He discusses the craze, among the
wealthy, for relaxation retreats where silence is on the
menu (he did a yoga version himself, in Sri Lanka). He also
taught himself hypnosis, “in order to disconnect. . . . I lie
there hovering a couple of centimetres above my bed each
afternoon.”
I too remember crunching over ice at the South Pole—
though I had not walked there like the author—and thinking
about the ethereal quality of silence that the owned world
cannot give (no country owns the Antarctic). Erling Kagge
captures that wonder on the page.
Ms. Wheeler is the author, most recently, of “O My
America! Six Women and Their Second Acts in a New
World.”
Coming in BOOKS this weekend
The political life of Franklin D. Roosevelt • The art
of conducting • How Christmas conquered the world •
Remembering the Modoc War • Tom Nolan on holiday
mysteries • The rise and fall of rock stars • & more
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A16 | Friday, December 22, 2017
OPINION
LETTERS TO THE EDITOR
The Corporate Tax-Cut Dividend
Democrats Should Have Made a Joint Effort
A
Heritage at True North
tinctively conservative perspective.
We spoke this week with Ms. James about
her plans, and asked how Heritage would fit into
a volatile conservative political environment
defined today by keywords as broad as Trump,
the Establishment, Bannonites, the Freedom
Caucus, and, yes, The Wall Street Journal Editorial Page. That volatility includes some run-ins
between these pages and the foundation’s political arm, Heritage Action.
“Heritage will always be true north.” Ms.
James told us. “Some individuals may be political, but the good news is what we do is research
issues with scholars. We provide the data. We
will be the intellectual grist for the entire conservative community, no matter where they are
in the conservative spectrum.”
Mr. Feulner, who steps down after some 40
years with Heritage, added a parting thought:
“We’ve always tried to build the conservative
movement by adding and multiplying, not dividing and subtracting.” Adding and multiplying almost sounds like a novel idea in politics
lately. In Kay James, Heritage has picked someone who knows how that’s done.
no
n-
torch has passed at one of the institutional pillars of the American conservative movement. The Heritage Foundation announced this week that Kay Coles
James will succeed Ed Feulner as the organization’s president. Mr. Feulner stepped in on an
interim basis after former Senator Jim DeMint
left Heritage in May.
In a sense Heritage looked to its roots in selecting Kay James as its new president. A longtime member of the Heritage board of trustees, she got started in public life working on
Ronald Reagan’s National Commission on Children. That was not long after Mr. Feulner was
putting together the pieces of the Heritage
Foundation, one of the earliest Washington
think tanks.
The idea was that with Reagan a new set of
politically conservative ideas was aborning in
Washington, which inevitably would lead to
public policy proposals and legislation based
on those ideas, such as tax cuts and welfare reform. The idea behind Heritage was that its
scholars would inform those debates with studies that were factually rigorous and from a dis-
O
I couldn’t agree more that Democrats have damaged themselves and
their country by choosing not to debate tax reform (Review & Outlook,
Dec. 18, “Democrats Against Tax Reform”). Republicans behaved the
same way regarding ObamaCare. Minority boycott is a bad legislative
strategy for the party that engages in
it, and for the country. Unfortunately
it seems to be the way Congress
works today and will work for the
foreseeable future.
JACK BUTLER
Encinitas, Calif.
Eisenhower years which approached
90%. Reducing the tax by 20% to 70%
had an exaggerated impact.
Today’s situation is different. The
percentage declines in individual and
corporate tax rates are comparatively
small, with only a 2.6-percentage
point drop in the top individual rate.
The drop in the corporate rate probably will make little difference in business competitiveness, considering
that the average effective tax rate of
European competitors remains substantially lower than the 21% nominal
rate the tax bill establishes.
Democrats did not make a joint effort because Majority Leader Mitch
McConnell did not follow Reagan’s
outreach precedent from 1986. Mr.
McConnell from the outset sought
passage through budget reconciliation to rely only on Republican votes.
ALBION URDANK
Los Angeles
The Democrats’ unanimous opposition to tax reform has nothing to do
with the nation’s economy or the best
interests of their constituents. It’s the
“resistance,” plain and simple.
The lesson of the last eight years
is that blind party-line voting never
works in the long term. Whatever it
produces lasts only until the inevitaNot a single Democrat was willing
ble political sea change.
JACK DEVINE to cut the top rate because that
Spring Lake, N.J. would only add to the deficit by putting money in the pockets of the
The Kennedy tax cuts worked bewealthy, where it will stay.
cause they reduced marginal rates
BRIAN COMBS
Fort Collins, Colo.
from the confiscatory levels of the
Banks, Credit Unions Each Have Their Place
I believe I have a unique view of
the differences between banks and
credit unions, having been a director
of small banks for some 49 years as
well as of a credit union for 35 years
and counting (Letters, Dec. 14).
Banks are for-profit businesses
pure and simple. They are owned by
stockholders and are driven to maximize returns to their stockholders
by offering to customers services
that result in operating profitably
for the benefit of the stockholders.
Credit unions, pure cooperatives,
are owned by their members (i.e.,
customers) with the driving policies
being service to the members’ financial needs.
Both are highly regulated, but
credit unions more so, especially
when it comes to raising capital,
where banks have many more
choices. Any distribution to the
members is taxed to the individual
member-owner. Distributions to
members are effectively returning
thereto a portion of excess expenses
the members earlier incurred.
While I could go on at some
length, there is plenty of room for
both. As a credit-union volunteer,
my multiyear “compensation” is
zero. As an investor in and director of banks I was well compensated and have long enjoyed my
retirement.
EVANS M. HARRELL
Marietta, Ga.
co Fo
m rp
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er rs
ci on
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on
ancy Pelosi has decided that no Demo- comes down to running against the tax bill alcrat, not even the irrepressible Chuck most entirely on the basis of its poor opinionSchumer, is going to outbid her in pour- poll numbers, which result from months of
ing forth denunciations of the
negative media spin. Still,
Workers get a $1,000 there are a couple of things
tax reform of 2017. The bill,
she says, reflects “the greed of
noting about the posibonus. Democrats call worth
those with power, the cruelty
tion the Democrats have
it ‘cruel’ and a ‘scam.’ staked out.
that is in the heart of the tax
scam.” Digging deeper into
The party this week has
the holiday spirit, she invoked
issued an all-but-official anDickens’ Ebenezer Scrooge and Tiny Tim.
nouncement that its core interests are at
Alas for Rep. Pelosi, the business reaction so odds with those of the entire private econfar to the tax bill is starting to look like the end- omy of business owners and employers. For
ing of “It’s a Wonderful Life.” As we went to modern Democrats, the employer class is a
press, at least six large corporations had an- lumpen corporatariat, with no other function
nounced plans to do more for their employees, in the life of the country than to be taxed and
explicitly attributing their action to the tax regulated.
bill’s business tax reforms.
Let’s consider this notion in light of these
Boeing, saying the new law “boosts Boeing’s corporate announcements. Between them,
competitiveness,” announced it will move up an AT&T and Comcast have 300,000 employees
additional $300 million of investments, dedi- who will benefit from the $1,000 bonuses. Vircating $100 million to corporate giving; $100 tually all American workers not employed by
million for worker development; and $100 mil- the government depend on the economic health
lion to enhance the company’s facilities.
of their employers to support themselves and
AT&T said it will increase its U.S. invest- their families. On what basis do these bonus
ments next year by $1 billion, plus pay a $1,000 and investment announcements deserve cynibonus to some 200,000 employees. Comcast cism and vilification?
CEO Brian Roberts, explicitly citing tax reform
Consider as well the economic substance.
and the FCC’s decision to end net-neutrality, Among the criticisms of the corporate-rate cut
pledged a $1,000 bonus to about 100,000 em- is that businesses mostly would buy back
ployees and vowed to invest “well in excess” of shares, benefiting only shareholders. Certainly
$50 billion over five years.
many will do that. But the announcements by
Wells Fargo and Fifth Third Bancorp said AT&T, Boeing and Comcast suggest another
they would increase their minimum wage to $15 likely result. In a growing economy with a tight
an hour, with Fifth Third also throwing in a labor market, scarce workers are increasingly
$1,000 bonus for 3,000 hourly workers. Nexus valuable. When Boeing says it plans to invest
Services is giving a 5% pay raise to its employ- $100 million in its workers, the clear message
ees and hiring 200 more. “While the tax reduc- is that Boeing knows that in a strong and comtion for individuals are not that substantial, we petitive economy, it is going to be in a bidding
at Nexus thought that we could share the gains war for talent.
from the deep corporate tax cuts with both curThat is part of the argument made by White
rent employees and our new hires,” said CEO House chief economist Kevin Hassett and othMike Donovan.
ers. A wide body of research suggests that corIf Nancy Pelosi ever did anything in her po- porate tax reform that lets companies retain a
litical career that produced this result from cor- greater share of earnings will benefit workers
porations, she’d be dancing down the aisles of in higher wages.
the House of Representatives in a Santa Claus
How any of this is bad is a mystery. Demosuit. Instead, the Democrats are dripping bile crats are betting that the private sector will fail
on the entire bill. “There are only two places to respond to the tax bill’s incentives. Demowhere America is popping champagne,” said crats used to be the party of hope. Now, by their
Sen. Schumer, “the White House and the corpo- daily admission, they have become the party of
rate board rooms.”
hoping that tax cuts will fail and private investThe Democratic strategy heading into 2018 ment won’t help workers.
ly
.
N
REVIEW & OUTLOOK
Trump’s Present for Putin
n Monday the White House released a calate but at the risk of sending more Russians
new national security strategy that home in body bags. Having crossed the Rubicon
named Russia as a “revisionist” power of lethality with this arms sale, the Administraseeking to upend global order.
tion ought to follow up by sellHelping the Ukrainians ing more powerful weapons,
On Wednesday President
Trump followed up by consuch as antitank and anti-airdefend themselves
firming he’d approved the sale
craft missiles, that address
against the Russians. Russia’s biggest military adof lethal defensive weapons to
Ukraine as it resists Vladimir
vantages. Mr. Trump’s NaPutin’s aggression.
tional Security Council recMr. Putin invaded and then illegally annexed ommended such a sale last month.
Crimea in 2014, and Ukrainians have been fightMeanwhile, the Treasury Department
ing since to stop the march of Moscow-backed Wednesday announced sanctions on Ramzan
separatists in their south and east. They’ve had Kadyrov, the Chechen leader who is a Putin favorlittle material support from the West. That’s ite. Treasury accuses Mr. Kadyrov of torture, exabout to change now that the Trump Adminis- trajudicial killing and “other gross violations” of
tration has approved a $41.5 million sale of human rights—which understates his record.
weapons that include the Model 107A1 Sniper
Four others were added to the Russia sancSystems, ammunition and parts.
tions list, three for their involvement in the
This is a welcome reversal from Barack criminal enterprise uncovered by Sergei MagObama, who denounced Russia’s assault on nitsky, the Russian lawyer who died in prison afUkraine but refused to sell more than non-lethal ter trying to expose corruption. The fourth, Ayub
items like night-vision goggles. Mr. Putin Kataev, is a Chechen law enforcement official
learned that he could invade a sovereign neigh- who has been implicated for human-rights
bor and pay little price. Would Russia have gone abuses directed at gay Chechens.
into Syria if the West had shown some spine over
Treasury’s action was taken under the Global
Ukraine?
Magnitsky Act that authorizes sanctions
Team Obama argued that lethal weapons against individuals caught abusing human
would provoke Mr. Putin, who could escalate the rights. This is the same law the Russians who
Ukraine conflict to his advantage. But Defense met with Donald Trump Jr. at that infamous
Secretary James Mattis rebutted that argument Trump Tower meeting in June 2016 were so eaon a visit to Kiev in August: “Defensive weapons ger to see overturned.
are not provocative unless you are an aggressor,
Mr. Putin probes for ways to expand Russian
and clearly Ukraine is not an aggressor, since power and then strikes, gauges the response,
it’s their own territory where the fighting is and then keeps striking until the price becomes
happening.”
too high. Against Barack Obama, he found he
Mr. Putin has turned Ukraine into another could keep pushing with little consequence. A
“frozen conflict” he can accelerate or tone strong U.S. push back in Ukraine will do more to
down on his whim. The point of lethal aid is to impress Mr. Putin than all of Mr. Trump’s rhetoraise the price of his intervention. He could es- ric about desiring good relations.
Free markets choose successful organizations, and most credit unions
provide the financial products and
services people want and need. It
just may be credit unions do it better than banks with less fees and
better service.
JOHN H. MURGA
Chief Executive
Hidden River Credit Union
Pottsville, Pa.
Nebraska Legislature’s Single Chamber Works
Regarding John J. Miller’s “A Federalist Faces Down Lincoln’s Powerful Legislature” (Cross Country, Dec.
9): Were he alive, Sen. George Norris, father of the nonpartisan, unicameral Nebraska legislature, would
be dismayed by Gov. Pete Ricketts’s
mischaracterization of the Nebraska
Legislature.
The governor isn’t the only check
and balance on a unicameral legislature. As Sen. Norris pointed out in
advocating for the 1934 ballot measure that created Nebraska’s unicameral legislature, additional checks and
balances include the Nebraska Supreme Court, the people of Nebraska
with their rights to vote and petition
and the transparency of a single
house without the closed conference
committees associated with two
houses.
Sen. Norris would be even more
dismayed by Gov. Ricketts’s efforts to
destroy the benefits of a nonpartisan
legislature. In advocating for a non-
partisan legislature, Sen. Norris argued that such a body would allow
legislators to concentrate on local interests without being influenced by
national party lines. The Republican
legislators who made the difficult
choices to override Gov. Ricketts’s
vetoes and to not toe the national
Republican Party line on taxes, immigration and the death penalty, did so
after much deliberation and consideration of the best interests of all
Nebraskans.
Their reward was to be challenged for re-election by candidates
selected by Gov. Ricketts. The Nebraska ballot measure to reinstate
the death penalty was funded in
part by his considerable wealth.
Gov. Ricketts supports pushing
power back to the states. His actions
suggest that he is just as interested
in pushing power to himself and to
the national Republican Party.
CHRISTINE M. SMITH
Bellevue, Neb.
Don’t Ask, Don’t Tell When It Comes to Money
Gerald Skoning omits an essential
point in “When It’s Illegal to Ask,
‘How Much Do You Make?’” (op-ed,
Dec. 13). He assumes that the applicant was previously compensated at
market rates.
Once a potential employer knows
the applicant’s salary history the
employer is in a strong negotiating
position. Will this knowledge embolden the employer to make a lowball offer? My experience is a resounding yes.
JOHN SCATTERGOOD
LaGrange, Ga.
wonder how many companies would
agree to this reciprocity.
BRUCE BOWERS
Los Altos, Calif.
The legitimate employer question
is, “What salary are you looking for
in this position?” It is up to the employer to determine if the potential
employee is worth that amount.
MARK MCALLISTER
Johnston, Iowa
Pepper ...
And Salt
Wouldn’t it be beneficial if employers posted the salary range of job
listings rather than being silent? Salary ranges are already posted for all
federal job openings. If the applicant
is uninterested in working for the
posted salary, both parties benefit.
GIL EHRENKRANZ
Potomac, Md.
THE WALL STREET JOURNAL
If more information is always better, and the employer can ask the potential employee for his or her salary
history, then the potential employee
should be able to ask the employer
what the company pays other employees in the same position. This
policy would go a long way toward
neutralizing the gender gap, but I
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or emailed to wsj.ltrs@wsj.com. Please
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letters can be neither acknowledged nor
returned.
“Can I take a mulligan?”
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THE WALL STREET JOURNAL.
Friday, December 22, 2017 | A17
OPINION
Ms. Melchior is an editorial page
writer at the Journal.
By Taylor Dinerman
A
merica’s military satellites—
tens of billions of dollars
worth of equipment—are utterly defenseless. An adversary using
swarms of antisatellite weapons
could rapidly destroy U.S. communications, early-warning, navigation
and surveillance spacecraft, leaving
the military blind, deaf and lost.
Without these space systems, the
armed forces—on land, in the air
and at sea—would find it hard to
“move, shoot and communicate,” in
the Army phrase.
This longstanding weakness in
U.S. military posture is only beginning to be addressed. National security adviser H.R. McMaster announced in October that his team
will rewrite the Obama-era rules of
engagement for space warfare. To
judge by President Trump’s record in
Afghanistan and the Middle East, the
new rules probably will give commanders more authority to respond
quickly if an enemy attacks U.S. satellites. But that may not be enough
to handle the threats in space, which
grow more dangerous all the time.
What’s needed is a new, independent organization focused on regaining—and then keeping—military superiority in space. The House
version of this year’s National Defense Authorization Act provided for
the creation of a new Space Corps—
a separate military service carved
Matthew J. Murray
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But being the big dog in Europe
is no defense when the world’s
largest and most dynamic economy
is slashing its tax rates. A 21% federal rate in the U.S. will be impossible to ignore, given the incentives it creates for European
companies to invest in America instead of at home. That’s the main
conclusion of a report released last
week by Germany’s Center for Eu-
out of existing operations and placed
under the Air Force secretary, just as
the Marines are under the Navy secretary. That would have been a good
step, since the new service would’ve
had the single-minded focus necessary to take up the challenge of
fighting beyond the atmosphere.
But the White House and the Pentagon opposed the idea, arguing that
the Space Corps would represent a
new layer of unneeded bureaucracy.
In the end, Congress removed the
provision before the bill passed. Instead Congress passed a set of reforms that strip the Air Force secretary and staff of much of their power
over space-systems procurement and
gives it to the deputy undersecretary
of defense for space and to Air Force
Space Command. Lawmakers hope
that these changes will force the Pentagon to focus its efforts better.
For years the Pentagon has paid
lip service to the need to do something more to protect America’s
space assets. Since 2007, when China
conducted its first hard-kill test of
an antisatellite weapon, it has been
obvious that the U.S. needs to prepare for the possibility of war in
space. But for various budgetary and
ideological reasons, the Air Force as
a whole has done little to prepare.
The Obama administration’s approach was characterized by wishful
thinking and half-baked, unfunded
proposals—such as the idea that attacks on U.S. spacecraft could be de-
terred by international public opinion, or that “disaggregated” arrays
of smaller satellites would be hard to
shoot down.
The 2010 National Space Policy
promised that the U.S. would “defend our space systems and contribute to the defense of allied space
systems and, if deterrence fails, defeat efforts to attack them.” Yet the
Obama administration did almost
An adversary using
swarms of antisatellite
weapons could leave the
U.S. blind, deaf and lost.
nothing to back up these words. It
also did nothing to develop offensive
capacity in space, a logical part of
any deterrent. Even worse, since the
Clinton administration canceled the
space-based part of Ronald Reagan’s
Strategic Defense Initiative in 1993,
the U.S. has failed to develop orbiting weapons that can defend the
homeland from ballistic missiles.
The Obama administration’s ideological hostility to American space
power was evident. It diverted resources away from military space
programs, especially long-term research and development. It tried to
use the arms-control process, particularly the Space Code of Conduct, to
ensure that the U.S. (and, in theory,
other countries) would be forever
constrained from developing space
weapons.
Even the Obama administration
however, could not bring itself to
dismantle the small Ground-Based
Midcourse Defense system put in
place by the George W. Bush administration—notwithstanding the Democrats’ insistence, going back to Reagan, that missile shields were both
impossible and undesirable. That’s
all the more reason to establish the
Space Corps while Republicans still
hold Congress and the White House.
Once the U.S. has the capability to
fight and win in space, future Democratic administrations will have to
accept it.
President Trump’s new National
Security Strategy acknowledges that
some nations think “the ability to attack space assets offers an asymmetric advantage and as a result are
pursuing a range of anti-satellite
(ASAT) weapons.” Mr. Trump promises that if U.S. spacecraft are attacked, America will respond “at a
time, place, manner and domain of
our own choosing.” Strong words,
especially absent the capacity to
back them up. In the end only a dedicated new force can develop the
systems, doctrines and tactics
needed to make deterrence credible.
Mr. Dinerman writes on space
policy and national security.
The Story Behind ‘A Christmas Story’
By Thomas Lipscomb
L
ike American humorists from
Mark Twain to James Thurber,
Jean Shepherd was a malcontent. “Shep,” as friends called him,
died in 1999 and is best remembered
as the writer/narrator of the 1983
movie “A Christmas Story.” But his
deceptively folksy talent was fueled
by a deep conviction that nothing
ever turned out right.
A midwesterner, Shep created a
niche for himself in the Mad Men me-
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Rupert Murdoch
Robert Thomson
Executive Chairman, News Corp
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
Suddenly, the world’s
biggest economy has lower
corporate rates than the
Continent’s giants.
ropean Economic Research, and
lest anyone in Berlin miss the
point, the title of the press release
was blunt: “Germany Loses Out in
U.S. Tax Reform.”
Intriguingly, that assessment and
others like it rely on estimates not
just of the behavior of American
companies—Google and Facebook
are the names that most often come
up in global tax debates—but also of
the response from European companies to U.S. tax reform. As American
accountants and tax lawyers
sharpen their pencils, German executives will start asking themselves:
Why build our next factory in Germany, with a 31% statutory corporate rate, more-onerous labor regulations and an aging population,
when America beckons with a 21%
rate, better demographics and the
world’s largest market?
It’s hard to overstate what a
shock to the European system this
is. The Continent has long labored
under the conviction that Europe’s
main tax problem was that companies weren’t paying enough. Thus
the biggest tax innovations in re-
America’s Military Needs a Space Corps
no
There’s a two-page spread of
“Love Letters to Hill.” Readers are
assured they are “personal notes” selected from more than 100,000 postelection missives Mrs. Clinton received from young women, including
singer Miley Cyrus and actresses
Chloë Grace Moretz and Lena Dunham. The magazine helpfully advises:
“Read with tissues in hand!”
Then there’s Mrs. Clinton’s own
love letter to Mrs. Clinton—or rather,
to Miss Rodham. Framed as advice to
her 18-year-old self, it includes such
tips as “when president-elect Barack
Obama says he wants to talk to you
about a job opportunity in his cabinet, hear him out.”
Even the fashion and beauty sections are mostly about Mrs. Clinton.
Teen Vogue pronounces that “sensible heels are back again.” Regarding
pantsuits, “don’t call it a comeback,”
because “the suit has been here since
the 1910s.” Readers learn that Mrs.
Clinton’s favorite makeup remover
was created by “the famed Georgette
Klinger spa.” It’s been discontinued,
so readers “can’t just find her staple
at your local Sephora (or anywhere
online)!” Mrs. Clinton, however, has
“snatched up” a massive supply. After years’ worth of six-figure
speeches, she can afford it.
Mrs. Clinton’s guest-editorship is
emblematic of Teen Vogue’s recent
politicization. Last April, Condé Nast
appointed 30-year-old Elaine Welteroth as editor in chief. She has presided over a magazine fixated on
identity politics. Ms. Welteroth seeks
to “empower” her young readers by
urging them to organize, protest and
vote in support of progressive
causes. Teen Vogue has focused on
building a social-media following,
and it hosted “summits” in cities
across the U.S. Speakers have included Rep. Maxine Waters, several
Black Lives Matter representatives—
and, of course, Mrs. Clinton.
Teen Vogue has billed its editorial
shift as activism, but the obsessive
focus on Mrs. Clinton seems more
like perseverative cognition. And in
the era of #MeToo, the heavy-handed
promotion of Mrs. Clinton—who
blamed her husband’s sexual misconduct on a “vast right-wing conspiracy”—is downright regressive.
Ms. Welteroth acknowledges that
not everyone will approve of Mrs.
Clinton’s work: “Some will say it’s
too partisan, too political, too retrospective, too ‘echo-chamber-y,’ ” she
writes. “This issue isn’t for them.”
It’ll be a long wait for the next
one. Condé Nast recently announced
that, shortly after Mrs. Clinton’s issue, Teen Vogue will no longer be
printed.
its corporate rates, but in practice
these states haven’t needed to consider such steps, because their size
offered a form of comparative advantage that offset their high taxes.
Britain, with a top rate of 17%, positioned itself as the main big-economy exception, an outlier as with
most other matters European.
cent years have been new laws to
discourage companies from availing
themselves of “too many” legal
breaks in low-tax countries. Brussels also has creatively interpreted
its antitrust laws, claiming that
lower taxes amount to unlawful
“state subsidies.”
The conceptual problem with this
approach, which the Organization
for Economic Cooperation and Development describes as combating
“base erosion and profit shifting,” is
that it’s blind to incentives. Most
European tax-setting starts from the
premise that the tax base is fixed,
and the only thing that matters is
that each national government get
its “fair” share. The primary purpose of taxation, European officials
seem to believe, is funding a heavily
redistributive welfare state, never
mind the consequences for growth.
Washington’s new approach
couldn’t be more different. The U.S.
reform acknowledges that tax incentives matter for investment, job creation and economic growth. One implication of America’s reform is that
if Europe wants to have anything
left to redistribute in this newly
competitive world, it’s going to have
to start paying attention to growth
incentives.
Fortunately, this column’s other
prediction from March also is coming true. Deregulation, improving
sentiment and, now, tax reform are
reviving the U.S. economy, which is
on track to exceed 3% growth in
2018. This is lifting Europe’s longsuffering economies and providing
fiscal headroom for tax reform. Europe even has a few leaders, such as
French President Emmanuel Macron, who are prepared to push aggressive tax cuts. There will rarely
be a better moment for a European
tax revolution—a point for voters
and politicians alike to remember.
ly
.
Hillary Clinton guest-edits
an issue of the magazine,
and it’s all about her.
ISTOCK/GETTY IMAGES
D
onald Trump may be president
of the United States, but he’ll
never get to edit an issue of
Teen Vogue.
Hillary Clinton expanded her already impressive résumé by guestediting the issue that hit newsstands Dec. 5. It was a theme issue,
with 36 pages devoted to a single
subject: Hillary Clinton. That’s more
than the 31 pages of ads in the 97page magazine.
Mrs. Clinton commissioned several
articles about herself. Staff writer
Lauren Duca proclaims that “zooming
out on Hillary’s 2016 loss reveals the
broader contours of women’s oppression,” while Gloria Steinem says that
when a woman is elected president,
“she will be climbing steps that were
carved out by Hillary.” The issue also
features contributions from Chelsea
Clinton and Betsy Ebeling, identified
as Mrs. Clinton’s “BFF.”
The tax reform
passed in Washington this week is a
gauntlet thrown
down to Europe’s
big taxers. This
POLITICAL column warned of
ECONOMICS that possibility in
March, but the reBy Joseph C.
ality has turned
Sternberg
out worse for Europeans
than
seemed likely nine months ago. Once
President Trump signs it, the law
will open a new battleground for
competition with Europe’s highesttaxing governments. It also challenges Europe’s fundamental attitude
toward taxation.
The reduction in tax rates is only
part of it. The bill will cut the top
federal corporate tax rate to 21%
from 35%, bringing the average effective rate, including state and local taxes and accounting for deductions, down to around 23% from
around 39%. That doesn’t sound so
bad for Europe. The U.S. will only
run roughly even with the European
Union’s average effective rate of
around 21%.
That EU average, however, conceals notable geographic diversity,
embodying Europe’s grand tax bargain with itself: The smaller or the
poorer a country is, the lower it can
cut its tax rate.
European leaders gripe about Ireland’s 12.5% corporate rate. But they
tolerate it because Ireland’s small
size limits its capacity to draw business away from big countries such
as France, Germany, Italy and Spain,
whose tax rates approach or even
exceed 30%. The same holds for the
EU’s less-affluent formerly communist member states, whose statutory
rates generally max out at 22%.
No EU rule outright prohibits a
large member country from cutting
co Fo
m rp
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er rs
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By Jillian Kay Melchior
U.S. Tax Reform Has Europe Worried
n-
What
Happened to
Teen Vogue?
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dia world of New York during the
1950s through ’70s. His “Jean Shepherd Radio Show,” pitched to “night
people”—his term for nonconformists—ran more than 20 years. He
pulled off one of the great literary
hoaxes with co-author Theodore Sturgeon. Ballantine Books commissioned
and published “I, Libertine” in 1956
after Shep’s listeners inundated bookstores with orders for the nonexistent
novel. He said Steve Allen recommended him as his replacement for
“The Tonight Show” in 1957. He had a
one-man show at Carnegie Hall and a
lavishly praised PBS series called
“Jean Shepherd’s America.”
But these achievements meant
nothing to Shep. Everyone else was
always more successful in his eyes.
He was a terrific talent spotter—
an early fan of Jules Pfeiffer, Mort
Sahl, Jack Kerouac, Shel Silverstein,
Paul Krassner, Lenny Bruce and others. In almost every case, Shep ended
up at sword’s point with talents he
championed. He was convinced his
friends were ripping off his ideas.
As Shep’s editor at Dodd, Mead &
Co., I spent many an evening in the
1970s listening as he downloaded the
latest indignities. One evening he fixated on his friend Herb Gardner’s longrunning Broadway play “A Thousand
Clowns.” Shep was convinced Gardner
had captured his essence and made
millions off it as the chief character in
the play and subsequent film. He had a
point. Gardner’s disgruntled but hilarious lead, Murray Burns, not only was
given to endless Shepherdian monologues, but copied his expressions and
even his frequent ghastly singing of
“Yes Sir, That’s My Baby,” accompanied on a ukulele.
I wasn’t about to argue, but his
agent, a feisty blond named Leigh
Brown, was with us and she’d had
enough. Leigh had been a professional
show jumper, risking her life on ornery horses. She handled Shep just
fine and was about to marry him.
“Shep, I have told you a million
times, your short stories simply
aren’t filmable,” she said. “They are
quick sketches.” Leigh was convinced
that the radio show would get canceled and Shep would end up broke.
She hoped they could make a fortune
from recurring income if a movie
about Ralphie and his BB gun—a
group of tales from Shep’s 1966
novel, “In God We Trust, All Others
Pay Cash”—became a Christmas classic. “You won’t let me try and sell
that,” she complained. “You think it
is too trivial. You don’t want just a
movie, you want a significant movie.
Don’t blame it on anyone but your
own stubbornness.” That provoked a
half-hour tirade from Shep about how
incompetent Leigh was.
Around the same time, the director
Bob Clark was putting together “Murder by Decree,” a Sherlock Holmes
film. He heard Shep on the radio tell
the tale of how Ralphie’s friend Flick
got triple-dog-dared into freezing his
tongue to the school flagpole. Clark
considered himself an expert on the
vagaries of adolescent America, and
he was convinced this story would
make a great film scene. He proved
his expertise by writing and directing
the 1981 film “Porky’s” and put up
some of his own money to get MGM
behind “A Christmas Story.”
By the early 1980s, Shep’s radio
show was over. This movie idea was
his last chance to avoid the poorhouse. Shep, Leigh and Clark collaborated on the screenplay, and she
helped keep Shep off Clark’s set.
Shep, who considered himself a co-director, was constantly “helping the
actors” and haranguing visitors, most
of whom had never heard of him.
“A Christmas Story” didn’t do
nearly as well as “Porky’s” at the box
office. To date it has made barely $20
million in theater receipts. But Shep
was no longer a has-been. Like “the
Old Man” he had finally won his own
“major award.” And no one could steal
this idea. Shep’s late-in-life success
had been created out of the magical
world of his own childhood, one he
had explored and shared with enthralled audiences all his career.
For the few years they had left,
Shep and Leigh had enough money to
retire on Florida’s Sanibel Island. “A
Christmas Story” is now the most beloved Christmas film in America, just
as Leigh had hoped and Shep had
never dreamed.
Mr. Lipscomb is a former editor
and CEO in publishing and high-technology companies.
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Spotify’s Direct Listing Advances
BY MAUREEN FARRELL
AND ALEXANDER OSIPOVICH
Spotify AB is expected to
receive approval from the Securities and Exchange Commission to move forward with
a listing of its shares on the
New York Stock Exchange, a
key step in the music-streaming service’s plan to avoid a
traditional initial public offer-
ing.
Spotify plans to list its
shares on the NYSE using an
unusual method known as a
direct listing. Before it can do
so, the exchange must win approval from the SEC to change
its rules. The NYSE has applied for such a change, and
the SEC has indicated to Spotify it is likely to approve, people familiar with the situation
said.
The Swedish company was
valued at $8.5 billion during a
private capital injection in
2015. Its valuation is now
closer to $20 billion, based on
a recent share swap be-
tween Spotify and Chinese internet giant Tencent Holdings
Ltd., some of the people
said. Spotify has been targeting March or April for its debut, according to people familiar with the matter.
The SEC hasn’t yet made an
official decision on the NYSE’s
proposal. It could potentially
reject it or ask for further
amendments. Spotify could
also still change its mind and
decide to delay or even not
move forward with a direct
listing.
If the debut goes well, it
could encourage other highly
valued and cash-rich startups
like Airbnb Inc. to pursue direct listings, people familiar
with the matter have said.
In a direct listing, a company
transfers its shares to an exchange without raising money,
as is done in a typical IPO. Companies have shied away from
the unusual process in part because there is a greater risk
that the shares could flop since
there are no underwriters to set
and prop up the price.
Among the draws: Direct
listings enable companies to
save on the hefty underwriting
fees associated with traditional IPOs, and there aren’t
restrictions on when insiders
Shoppers Desert the American Shopping Mall
Number of stores that have
disappeared from the typical
U.S. mall since 1995:
8 Books and gift stores
6 Menswear stores
17 Restaurants
T-shirts, teen and
7 children's clothing
stores
25 Toys, music, other
specialty stores
and arcades
4 Electronics stores,
photo studios and
photography stores
The rise of online retail and
changing consumer preferences
have hammered U.S. malls. B5
AT&T Bonus Pledge Has Tax Angle
n-
businesses that have also
promised tax-bill bonuses or
are considering charitable
contributions or other yearend expenses ahead of the taxlaw changes.
There is a catch: Mr. Trump
might not sign the bill until
the new year. That could push
AT&T’s bonuses into 2018,
raising the cost to the telecom
giant. The final result depends
on how it has structured its
promise to make the payments.
AT&T, like other large companies, is an “accrual” taxpayer, booking income and expenses for tax purposes when
it is certain of them, in some
cases before the cash changes
hand. That differs from “cash”
taxpayers, like individuals,
no
SPENCER PLATT/GETTY IMAGES
14 Beauty stores, vision
centers and other
The timing of AT&T Inc.’s
pledge this week to give
$1,000 bonuses to more than
200,000 workers once President Donald Trump signs the
tax overhaul may have saved it
$28 million.
That is because committing
to making the payments now
could let it record the expense
in 2017 for tax purposes. In
AT&T’s case, that would mean
a $70 million deduction under
the existing 35% tax rate. By
contrast, recording the bonus
expense in 2018, when the new
21% corporate rate is in effect,
would mean a $42 million deduction.
Similar calculations are
likely under way for other
Google-parent Alphabet Inc.
said Eric Schmidt will step
down from his post as executive
chairman in January, an unexpected retreat by the tech giant’s most high-profile ambassador.
Mr. Schmidt, who joined
Google as chief executive in
2001 and served in that position until 2011, will transition to
a role as technical adviser and
will continue to serve on Alphabet’s board, the company said
in a statement Thursday. Alphabet said his successor will likely
be a nonexecutive chairman.
Google said little about the
reason for the change and declined to make Mr. Schmidt, 62
years old, available for an interview. In the statement, he said
that co-founders Larry Page and
Sergey Brin, Google CEO Sundar Pichai “and I all believe that
the time is right in Alphabet’s
evolution for this transition.”
The Google co-founders and
Mr. Schmidt have been discussing his transition for about a
year, according to a person
close to the company.
Mr. Schmidt’s retreat signals
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
14 Womenswear stores
who are taxed on income when
they actually receive it.
Under tax rules, compensation expense is accrued when
it passes the “all-events”
$28M
Amount company could save on
taxes if it pays bonuses this year
test—in other words, when all
the conditions for the payments have been met, and the
amount is set.
AT&T has publicly tied the
bonuses to Mr. Trump signing
the bill, saying it plans to pay
them “once tax reform is
signed into law.” In that case,
the all-events test wouldn’t be
met until that time, tax experts say. If that doesn’t happen until 2018, AT&T stands to
lose 40% of the tax deduction
it could have claimed.
But if AT&T has committed
to paying the bonuses, and the
question is only when it cuts
the checks, the company can
accrue the payment this
year—and saves $28 million
on the gesture. (It also must
actually make the payments by
mid-March, under IRS rules.)
AT&T has said it would pay
the bonuses over the holidays
if Mr. Trump signs before
Christmas, but a spokeswoman
declined to say whether the
Please see ATT&T page B2
Venture-backed, nonpublic
companies by valuation
$68.0 billion
Uber
56.0
Didi Chuxing
46.0
Xiaomi
31.0
Airbnb
SpaceX
21.0
WeWork 20.2
Palantir
20.0
Spotify
20.0
Lufax
18.5
Meituan 18.3
Source: Dow Jones VentureSource;
WSJ reporting (Spotify)
THE WALL STREET JOURNAL.
Schmidt to Leave
Post at Alphabet
BY JACK NICAS
3 Anchor stores
16 Shoes and jewelry
BY THEO FRANCIS
can sell shares.
The NYSE in March filed its
initial proposal with the
SEC to amend its direct-listing
rules. Since then, it has repeatedly amended the plan,
most recently on Dec. 8, regulatory filings show.
The SEC has until Feb. 15 to
either approve or disapprove,
according to an order released
by the agency last week.
The SEC had concerns that
Spotify’s direct listing could
open the door for other companies with potentially risky
financial profiles to access the
public markets without giving
Please see SPOTIFY page B2
Private Club
a generational shift at the tech
giant, which he helped shape
into one of the world’s most
valuable and influential companies. Messrs. Page and Brin had
brought Mr. Schmidt on board
when Google was still a scrappy
search engine, and the older executive gave Google structure
and discipline.
During Mr. Schmidt’s decade
as CEO, Google expanded well
beyond search into areas such
as maps, email, online video
and smartphones. Those products—Google Maps, Gmail, YouTube and Android—each now
have more than a billion users.
Mr. Schmidt’s step down
comes as the company—now a
colossus valued at $743 billion—has achieved steady financial performance in recent
years. Since Google reorganized
to become Alphabet in 2015 he
has become more of an ambassador for the company, traveling the world to speak at events
and meet with world leaders.
He has deep political ties,
but his influence in Washington
was weakened by the election
of President Donald Trump.
—Yoree Koh
contributed to this article.
ly
.
SEC go-ahead would
mark key step in
music streamer’s plan
to skip traditional IPO
See more at WSJMarkets.com
INSIDE
PAPA JOHN’S
FOUNDER QUITS
AS CHIEF
LAWMAKERS
PUSH SCRUTINY
OF HNA
MANAGEMENT, B3
FINANCE, B10
STREETWISE | By James Mackintosh
Tax Plan Has Downside
For Dell, Others in Debt The 3 Things That Can Go Awry in 2018
BY MICHAEL RAPOPORT
AND RACHAEL KING
Last year, just before he
closed the biggest technology
merger in history, Michael Dell
was asked how he would feel
waking up and being nearly
$50 billion in debt. His reply:
“We do everything bigger in
Texas.”
Now, Mr. Dell’s costs on that
debt are about to get bigger.
The tax overhaul expected to
become law soon will limit the
tax deduction that companies
take for the interest they pay
on their debt. With the change,
Dell Technologies Inc. won’t
be able to deduct a big chunk of
the roughly $2 billion it pays
yearly in interest on its debt—
and that tax bill could rise further a few years from now.
A Dell representative said it
is still analyzing the impact of
the bill. The company’s deal to
buy EMC Corp., aimed at establishing a one-stop shop for
information technology sold to
business, was forged on the as-
sumption that the interest expense on Dell’s debt would remain deductible, said a person
familiar with the matter.
Other highly indebted companies with speculative-grade
credit ratings also face the
prospect of having much of
their interest payments taxed.
Full deductibility of interest
has long made borrowing more
attractive for companies when
they needed money, instead of
raising capital through selling
equity. Some observers say the
change could help make companies safer, if it steers them
away from more debt.
Tenet Healthcare Corp.,
which has nearly $15 billion in
debt, said Tuesday that it expects the tax bill’s limit on interest deductibility to lower its
2018 earnings forecast; it
didn’t offer more detail. A Tenet spokesman wasn’t available to comment.
J.C. Penney Co., which has
speculative credit ratings and
more than $4 billion in debt,
Please see DEBT page B6
Investors
who spend
their holidays
looking back
at what’s happened this
year will be wallowing in
happy nostalgia, as virtually
every asset went up. But investing is about the future,
not the past, so break away
from the complacency-inducing returns of 2017 and think
about what could go wrong.
A look back at what went
right is a helpful way to
frame the question. Here are
three big things that didn’t
happen in 2017 and could
hurt:
Monetary tightening:
The Federal Reserve raised
rates three times this year,
yet it became easier to borrow and over long periods
actually got cheaper. Instead
of rising, long-dated bond
yields fell, and global monetary conditions were further
eased by the weakness of the
dollar. The Federal Reserve
Easy Money
Even as the Fed raised rates this year, U.S. monetary conditions eased
3
2
National Financial Conditions Index
Tighter
Tig
ghte
hterr
Recession
1
0
–1
E
Easi
Easier
asier
ier
–2
1990
2000
Source: Federal Reserve Bank of Chicago
Bank of Chicago’s National
Financial Conditions index is
at the loosest since January
1994, the year that surprise
Fed tightening crushed the
bond markets.
There are plenty of signs
that the balance of power
has shifted from lender to
’10
THE WALL STREET JOURNAL.
borrower. Many companies
have been able to ditch the
remaining covenants in their
bonds, leveraged loan finance is available at heady
multiples, and money has
been pouring into startup
private loan funds. The more
extended the debts, the more
tighter money will hurt
when it arrives.
In the international markets, a stronger dollar would
hurt overextended emergingmarkets borrowers. In the
past, these were mostly sovereigns, but since the 2008
crisis it has been emergingmarket corporations that
leveraged up. If they are
smart, corporations that
have borrowed in dollars and
euros have matched their
debt to hard-currency income. The ones that haven’t
will be hit hard by a stronger dollar, but it’s impossible
to know how much of the
$10 trillion-plus of emerging-market dollar borrowing
is covered this way.
China: The last two
falls of more than 10% in
global stocks were triggered
by fears about China, in the
summer of 2015 and the
start of 2016. The dangers
are unchanged; yet, markets
have stopped worrying.
Please see STREET 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 | Friday, December 22, 2017
INDEX TO BUSINESSES
F
Facebook......................B4
Fannie Mae..........B6,B12
Fiera Capital..............B12
Fifth Third Bancorp..B11
Fine Capital Partners
...................................B11
First Data....................B6
Freddie Mac.........B6,B12
Freeport-McMoRan...B12
B
GrabTaxi Holdings PteB4
R
H
Royal Bank of Scotland
Group.......................B10
Baidu ........................... B4
Bank of
Communications.....B10
BNP Paribas..............B10
Boeing.........................A1
C
Campbell Soup..........B12
Chevron ..................... B11
China Merchants Bank
...................................B10
China Minsheng Banking
...................................B10
Coinbase....................B11
Comcast.....................B11
Compagnie Financière
Richemont...............B12
Conagra Brands...........B3
Corrective Education..A3
CVS Health................B12
D
Dell Technologies........B1
Didi Chuxing................B4
DNB ........................... B10
E
EJF Capital................B11
Embraer.......................A1
EMC.............................B1
Ness Technologies....B10
News Corp...................B6
Nordea.......................B10
Nord/LB.....................B10
O
1Malaysia Development
...................................B10
P
Papa John's
International.............B3
G
Hershey.....................B12
HNA Group................B10
HSH Nordbank..........B10
S
SkyBridge Capital.....B10
SoftBank Group..........B4
Southern ..................... B2
Spotify...................B1,B4
Sunesis Capital.........B11
Swatch Group ........... B12
I
Ineos..........................B11
Ingram Micro.............B10
Intercontinental
Exchange...................B2
T
J
Tencent Holdings........B4
Tenet Healthcare........B1
Tesla............................B4
Time Warner.............B12
Toshiba........................B2
Turning Point Justice.A3
21st Century Fox.B6,B12
J.C. Penney..................B1
JPMorgan Chase.......B10
K
K12..............................A1
Knowledge Universe.A11
L
U
LeapFrog Enterprises
............................. A1,A11
Lloyds Banking Group
...................................B10
Uber Technologies ...... B4
V
Vivendi ........................ B4
Voya Financial...........B10
M
MBIA ......................... B11
MetLife......................B10
Mill Hill Capital ........ B11
Mubadala Investment
.....................................B4
W
Wal-Mart Stores........A3
Walt Disney.........B6,B12
Wells Fargo...............B11
INDEX TO PEOPLE
D
DeAngelis, Chris.........B4
Dell, Michael...............B1
E
Eber, Jill ..................... M2
Ebersbach, Kurt..........B2
Ells, Steve...................B3
G
Greene, Kevin..............B2
Grushow, Sandy..........B6
H-K
Hertzberg, Jill............M2
Hrivnak, Tamara ......... B4
Kandarian, Steven....B10
Ritterbusch, Jim.......B11
L
Schmidt, Andrew........B2
Schmidt, Eric...............B1
Schnatter, John .......... B3
Schultz, Howard ......... B3
Silverstein, Larry.......M2
Sherman, Brad..........B10
Skou, Soren...............B10
Smith, Charlie...........B11
S
Lee, Charlie...............B11
Levitan, Steve.............B6
Levitt, Larry................A3
Lidington, David........B12
M
Madden, David..........B11
Ma, Jack......................B4
Ma, Pony.....................B4
Messerschmitt, Betsy
....................................M2
Murdoch, Rupert.........B6
T
Taylor, Norita..............B4
V
P
Varga, Tamas............B11
Verona, Meredith.......M2
Pichai, Sundar.............B1
Pittenger, Robert......B10
Puchalla, John.............B6
Watt, Mel....................B6
Wessel, Michael ....... B10
W
R
Y
Ringel, Steve.............. A3
SPOTIFY
Facebook ('12)
JD.com ('14)
Spotify (pre-IPO)
Snap ('17)
$81.2
$26.2
$20.0
$20.0
Twitter ('13)
First Data ('15)
Qudian ('17)
Georgia officials voted
Thursday to continue building
two half-finished nuclear reactors even though construction
is more than $10 billion over
budget and five years late.
The nuclear-power units are
the only ones under construction in the U.S. and might be
the last ones built for decades.
The 5-0 vote by the state
public-utility commission was
a victory for Southern Co.,
whose subsidiary Georgia
Power is the primary owner of
the Alvin W. Vogtle Electric
Generating Plant, which has
two existing reactors. The
company now estimates a $750
million reduction in future returns from Vogtle compared
with previous expectations, in
part because the commission
imposed restrictions on how
much profit can be made on
the project.
Lengthy delays and blown
budgets for Vogtle have helped
snuff out the promise of an
American nuclear-power renaissance. Two other planned
nuclear-power units, at the
V.C. Summer plant in South
Carolina, were canceled this
summer. Several other preliminary projects in states such as
Florida have been scrapped.
The two new Vogtle reactors are now projected to cost
$25 billion, roughly double the
estimate from when they were
initially approved in 2008. The
first reactor is forecast to start
generating power by November 2021, more than five years
after it was scheduled to go
into service.
Nuclear power faces stiff
competition from low-cost natural-gas power plants. The
substantial cost and time required to build nuclear reactors also make it all but impossible
to
compete
in
deregulated power markets.
Only in a few parts of the U.S.,
$169.4
$14.4
$14.3
Going Public
At its most recent valuation,
Spotify would be one of the
largest tech companies
to debut on a U.S. exchange
since Facebook.
Market value at IPO, in billions
$7.9
King ('14)
$7.1
Line ('16)
$7.1
IMS Health ('14)
$6.6
Sources: WSJ reporting (Spotify); Dealogic
Inc.’s troubled 2012 debut, the
NYSE has won many of the
largest ones, including those
of Alibaba Group Holding Ltd.
and Snap Inc.
Nasdaq has been the go-to
no
Continued from the prior page
investors sufficient protection,
the people said.
The NYSE added various
safeguards to its original proposal, filings show. Under one,
there would be a company
providing a third-party valuation that would have an arm’slength relationship with the
company seeking to list shares
on the Big Board. The valuation couldn’t come from a firm
that had recently sold the
company investment-banking
services, for instance.
Direct listings are shaping
up to be an opportunity for
stock exchanges, too.
The NYSE, a unit of Intercontinental Exchange Inc.,
competes fiercely with Nasdaq
Inc. for listings. Nasdaq had
traditionally been the home of
tech IPOs, but since Facebook
Yang, Jerry................B10
Alibaba (2014)
BY RUSSELL GOLD
Two new Vogtle reactors, projected to cost $25 billion, are the only ones under construction in the U.S.
such as Georgia, does the electric industry remain regulated.
“It is really difficult to imagine
new nuclear power being
built,” said Allison Macfarlane,
a former chairman of the Nuclear Regulatory Commission.
The Georgia commissioners
approved pressing ahead with
a new budget, but imposed
requirements that likely will
restrict the profit Georgia
Power can get from the project. Georgia Power attorney
Kevin Greene said the company would accept the conditions. “We will do all we can
to complete this project,” he
said.
The project has been
plagued by delays and mismanagement. Earlier this year,
Westinghouse Electric Co., the
Toshiba Corp. unit building
Vogtle for Georgia Power, de-
clared bankruptcy because of
the rising costs, throwing the
future of the two half-finished
reactors into question.
Those questions were resolved with Thursday morning’s vote.
Westinghouse is no longer a
part of the project, and a nuclear-building unit of Southern
Co. will take over construction.
The vote received a quick
condemnation from several
groups that oppose continuing
construction. “Most people
have to pay for their mistakes,
but Georgia Power is still profiting from theirs,” said Kurt
Ebersbach, senior attorney for
the Southern Environmental
Law Center.
Rates already have gone up
as Georgia Power passed on financing costs for the project.
It isn’t clear how much of the
final construction costs will be
passed on to consumers.
Nuclear power has struggled in recent years. Several
plants have closed, reducing
the number of active reactors.
Illinois and New York approved new subsidies in the
past couple of years to ensure
existing plants don’t shut
down. New Jersey lawmakers
are considering a similar proposal.
Nuclear power came of age
in the U.S. during the 1970s
and now generates one-fifth of
America’s electricity needs.
But a spate of reactor construction petered out in the
1980s, as costs ballooned and
concerns over nuclear power
rose after the Three Mile Island plant near Harrisburg,
Pa., suffered a partial meltdown in 1979.
equipment and supplies in
2017 or 2018. If the amount
is fixed and the commitment
is made by Dec. 31, accrual
companies are on firmer
ground claiming the bigger
deduction.
“I can guarantee you these
guys are doing everything
they possibly can to accelerate deductions before the end
of the year,” said Andrew
Schmidt, a North Carolina
State University accounting
professor specializing in corporate taxes.
When it comes to bonuses
for top executives, the stakes
are even higher: Accruing the
bonus in the new year, as
companies often do thanks to
provisions giving boards discretion to adjust payouts,
could mean forgoing a deduction altogether. That is because the new tax legislation
will make it more difficult for
companies to deduct pay over
$1 million for top officers.
“We have companies who
are rushing to get those bonuses accrued this month, because it’s 35% of whatever vs.
0% if it’s over $1 million next
year,”
said
Caplin
&
Drysdale’s Richard Skillman,
who served as deputy chief
counsel and acting chief
counsel of the Internal Revenue Service under President
George W. Bush.
For AT&T and the bonuses
it plans for rank-and-file
workers, the sums at stake
aren’t huge. It reported $3.03
billion in profit for the three
months ended Sept. 30, and
even the full $200 million
pretax cost of the bonus payment pales beside the nearly
$12 billion in dividends it
paid in 2016. It is about
equivalent to the $193 million
AT&T said it paid its top five
executives over the past
three years.
Then again, $28 million is
still $28 million.
co Fo
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ci on
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us l,
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on
C
Chen, Feng ................ B10
Karatzas, Basil..........B10
Khalaf, Michel...........B10
n-
B
Bourdon, François.....B12
Brin, Sergey................B1
Georgia to Support Nuclear Work
JOHN BAZEMORE/ASSOCIATED PRESS
N
Exxon Mobil..............B11
Aetna.........................B12
Airbus..........................A1
Alibaba Group.............B4
Alphabet ................ B1,B4
Apollo Global
Management...........B10
Apple....................B4,B12
AT&T.............B1,B11,B12
Australia and New
Zealand Banking Group
...................................B10
BUSINESS & FINANCE
ly
.
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
exchange for direct listings by
private companies for the past
decade, completing about a
half-dozen since 2006, while
the NYSE has had none, according to the two exchanges.
STREET
Continued from the prior page
The risk has been discussed for years: China has
too much debt and has used
it to finance nonviable projects. To deal with this, China
could weaken its currency
(the cause of a 2015 global
selloff), restructure bad
debts or change the growth
model to expand the economy faster than its debt pile.
The first two are painful,
and changes to the growth
model typically led to recessions when tried by other
fast-expanding countries.
The bulls were right that
China’s bureaucrats would
allow nothing to go awry in
the run-up to the October
Communist Party congress,
in which the ideas of President Xi Jinping were written
into the party constitution.
My concerns remain. Mr.
Xi’s economic idea is to focus on the quality of growth,
not the headline number. It
makes perfect sense: Slow
sustainable growth is better
than a debt-fueled boom followed by bust. But it is hard
to switch the economy over
without shutting down old
industries.
Worse, money-supply
growth tends to have a
lagged effect on the economy, so the impact of this
year’s slower expansion may
be felt in 2018.
Chinese investors have
been willing to bet big on
Mr. Xi’s success shifting the
AT&T
Continued from the prior page
bonuses themselves are contingent on the president’s
signature.
“Most corporate taxpayers
would be better off with a
2017 tax deduction than a
2018 tax deduction,” said
James Salles, a tax attorney
at law firm Caplin & Drysdale
in Washington. “They would
not want to needlessly complicate their entitlement to a
deduction by saying something that would make it
seem contingent on something that might not happen
by the end of the year.”
Tax attorneys say that
similar determinations are
likely being discussed around
the U.S., as companies figure
out whether to make charitable contributions or ordinary
business
purchases
like
Reasons for Worry
China’s broad money growth has dropped below nominal
growth in the economy, for the first time in years
30%
Change from a year earlier
25
Nominal GDP growth
Broad money growth
20
15
10
5
0
2001
’03
’05
’07
’09
’11
’13
’15
’17
Bond prices and shares have tended to move in opposite
directions since the late 1990s, but before that moved together.
Correlation of U.S. stocks and Treasury price*
100%
50
0
Recession
Move in
p site directio
po
opposite
direction
–50
–100
1981
’90
2000
’10
*52-week rolling correlation of weekly changes in U.S. equities and 10-year Treasury total return
Sources: Thomson Reuters (money growth);
Thomson Reuters Datastream (correlation)
economy from saving to consumption. The best-performing domestically listed
stocks this year focused on
consumers, with the CSI 300
consumer-staples sector up
83% and consumer discretionary up 27%.
Back in 2015 investors
trusted that China’s Communist dictatorship had such
control over the economy
THE WALL STREET JOURNAL.
that nothing could go wrong;
hence, the big market impact
from a small devaluation.
There’s less trust now—14%
of mutual-fund managers
surveyed by Bank of America
Merrill Lynch think a China
debt crisis is the biggest investment risk next year—but
investors are still putting
faith in a Communist bureaucracy to deliver capital-
ist returns based on consumption.
A correlation correction: One reason investors
hold bonds is to cushion
losses in an stock-market
downturn. Since the late
1990s it has worked wonderfully, as bond prices tended
to move in the opposite direction to shares over the
short term, but the same direction in the long run.
This year has been another good year for this
strategy, with bonds providing free insurance by rising
in price even as shares did
well. The danger is that the
link between bonds and
stocks goes back to how it
was in the 1980s or early
1990s, with rising bond
yields being bad for share
prices. One plausible cause:
Inflation returns, but growth
stays weak. Another seems
implausible, but shouldn’t be
ruled out completely: Central
bankers finally get fed up
with investors relying on
easy money and decide they
have to act to prevent asset
prices from getting out of
hand.
When investors are basking in a global Goldilocks
economy that has little inflation and lots of growth, it’s
hard to get too concerned
about anything much. But
these are the times when investors need to work on
their worry. A lot of good
news is already baked into
asset prices, so if the economy and profits are merely
so-so, investors will be disappointed.
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.
Friday, December 22, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
Papa John’s Founder Gives Up CEO Job
Papa John’s International
Inc. founder John Schnatter is
stepping down as chief executive after a tumultuous few
months at the pizza chain.
Mr. Schnatter will remain
chairman, the Louisville, Ky.based company said Thursday.
Mr. Schnatter’s fellow directors asked him to keep running the board but there is
“no time limit” on his chairmanship, a person familiar
with the company said.
Steve Ritchie, who has been
chief operating officer at Papa
John’s since 2014, will become
CEO in January.
The pizza chain, a sponsor
of the National Football
League, has been embroiled in
the controversy over nationalanthem protests by football
players. Mr. Schnatter publicly
criticized the NFL last month
for not resolving the anthem
issue and blamed declining
television viewership of NFL
games for hurting the company’s third-quarter sales.
The move immediately
drew backlash on social media,
with some people tweeting
that the quality of the chain’s
pizza is to blame for its slug-
JACK DEMPSEY/ASSOCIATED PRESS
BY JULIE JARGON
John Schnatter of Papa John’s, left, with former National Football League player Archie Manning,
center, and current NFL player Deshaun Watson at a Super Bowl event in Houston in February.
gish sales. Others, including a
white-supremacist publication,
lauded Papa John’s for its
stance on the NFL protests.
The company tweeted out an
apology two weeks later for
any divisiveness Mr. Schnatter’s comments created and
acknowledged the players’
right to protest. In another
tweet, it denounced neo-Nazis
with a middle finger emoji.
Mr. Ritchie wouldn’t comment specifically on whether
the NFL flap or another controversy surrounding the University of Louisville athletics
department, of which Papa
John’s has been a significant
donor, played a role in the
timing of the transition.
“Clearly all of the PR things
have been quite a distraction,“
Mr. Ritchie said in an interview. “I want to put the focus
back on our people and pizza,”
he added. Mr. Ritchie, 43 years
old, said he was tapped to
eventually succeed Mr. Schnatter in 2015, when he was
named company president. He
joined Papa John’s in 1996 as a
customer-service representa-
tive earning $6 an hour.
Mr. Schnatter, 56, is no
stranger to controversy. He
criticized the Affordable Care
Act in 2012, saying it would
drive up pizza prices, which
led to boycott threats. In a recent book about how he created Papa John’s, he wrote
about how regulations have
hurt U.S. business. Through a
spokesman, Mr. Schnatter declined to be interviewed.
Mr. Schnatter founded Papa
John’s in 1984 and turned it
into a 3,400-unit chain in
North America, with a further
1,600 outlets overseas. He
stepped down as CEO once before, in 2005, after a sales
slump and returned three
years later after product quality began to slip, the company
said. In 2010, he shared the
CEO job with another executive, before assuming the sole
CEO post again a year later.
He is the company’s largest
shareholder, with a 27% stake
that had a market value of
nearly $562 million as of Dec.
5, when the latest securities
report was filed. His wife, Annette Schnatter, owns a Papa
John’s franchise in Louisville,
according to a company filing.
The company’s North American same-store sales growth
rate slowed in the third quarter versus the prior-year period and Papa John’s lowered
both its full-year same-storesales growth outlook for the
region and its overall earnings
guidance. The company, which
last month said it was evaluating its NFL sponsorship as a
result of declining TV football
viewership, said it is still doing so. “The NFL has continued to experience declines in
viewership,” Mr. Ritchie said.
“We’re evaluating all partnerships on a day-by-day, weekby-week and month-by-month
basis to make sure we’re getting the benefit.”
Mr. Ritchie said he couldn't
say whether the drop in TV
football viewership continues
to hurt sales, because Papa
John’s doesn’t report fourthquarter sales until February.
Papa John’s is trying to
move away from an overreliance on TV advertising and is
working to put more emphasis
on digital marketing, the company said. The company, Mr.
Ritchie said, is also seeking a
new public-relations agency.
Mr. Schnatter’s resignation
is the latest in a series of departures by company founders
or longtime CEOs in the food
industry. Chipotle Mexican
Grill Inc. founder and CEO
Steve Ells said last month that
he would step down from the
troubled burrito chain. Starbucks Corp. CEO Howard
Schultz in April stepped down
to focus on opening high-end
coffee shops within the chain
amid slowing sales growth in
its traditional cafes.
—Joann S. Lublin
contributed to this article.
ly
.
Schnatter will remain
pizza chain’s chairman
after sales difficulties
and dispute with NFL
BY ANNIE GASPARRO
AND AUSTEN HUFFORD
Conagra Brands Inc. said
new products and bulk-buying
ahead of hurricanes that hit
the Southern U.S. helped the
food maker return to sales
growth in the latest quarter.
Chief Executive Sean Connolly said Conagra won new
customers by simplifying recipes and modernizing advertis-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Conagra Gets Boost From Storm-Related Purchases
ing for older brands like
Healthy Choice frozen dinners
and Slim Jim snacks. The company estimates that buying
ahead of hurricanes Harvey
and Irma drove most of the
2.3% comparable sales increase in the quarter, Conagra’s first quarter of sales
growth in more than a year.
Revenue rose 4.1% to $2.17
billion in its fiscal second quarter ended Nov. 26, beating ex-
pectations and underscoring
progress in Conagra’s strategy
to become a smaller company
more focused on supermarket
mainstays like Marie Callender’s frozen pot pies and Orville Redenbacher’s popcorn.
“From here, you’ll see more
innovation, more support behind the brands,” Mr. Connolly
said in an interview. He said
Conagra will focus on foods that
appeal to younger customers,
while also defending sales to
baby boomers with its longstanding, lower-priced brands.
Conagra has come out with
new products like Healthy
Choice Power Bowls to appeal
to customers that have abandoned older brands like Chef
Boyardee pastas. Conagra has
also acquired smaller brands
that capitalize on shifting consumer preferences. Mr. Connolly led acquisitions of Fron-
tera, a Mexican food brand,
and Angie’s Boomchickapop, a
flavored popcorn.
On Thursday, Conagra said it
had agreed to buy Sandwich
Bros., a Wisconsin-based frozen
sandwich business with about
$60 million in annual sales.
Since Mr. Connolly took
over, the conglomerate has
also spun off its Lamb Weston
frozen-potato business, which
sells largely to restaurants,
and sold its private-label business, which makes food under
grocery stores’ brands.
Overall for the quarter, Conagra reported profit of $223.5
million, up from $122.1 million a
year ago. Adjusted to exclude
one-time events, earnings were
55 cents a share, ahead of the
52 cents analysts expected, according to FactSet. Conagra
shares traded roughly flat on
Thursday after an early rally.
vale.com
Photo: Ricardo Teles
no
n-
We have reached the highest level
of governance on the Stock Exchange.
A new Vale in the Novo Mercado.
S11D Eliezer Batista Complex Stockyard
Canaã dos Carajás, Pará, Brazil
Vale has just reached the highest level of governance on the Brazilian Stock
Exchange. In practice, this means more capacity for generating wealth and
independence to strengthen ethics, transparency and sustainability in our
business. In the largest operation of this size in the country, Vale demonstrates
how it respects and values its investors and other stakeholders, providing
greater protection and increased power to minority shareholders. This gives
more value to the company and to everyone who makes Vale evolve.
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 | Friday, December 22, 2017
* *****
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Vivendi’s Universal
reaches licensing pact,
opening new revenue
and pressing YouTube
BY ANNE STEELE
The world’s largest record
company licensed its music to
Facebook Inc. in a deal that
paves the way for a new revenue stream for an industry in
the early stages of recovery
from years of online piracy
and other woes.
Vivendi SA’s Universal Music Group is the first major
music company to strike such
a deal, which covers songs
used in the background of videos and “other social experiences” on Facebook, Messenger, Instagram and Oculus.
The deal centers on music
featured in user-generated
videos, which previously didn’t
generate income for the music
industry and has been the target of extensive legal efforts
to have it removed—a strain
on both users of the platform
and music companies. For
Facebook, the deal could ease
the way for its users to post
more video, a format the company is investing heavily in to
drive growth.
Most Facebook users aren’t
aware of how to license music
for their personal videos, and
the burden has fallen on labels
to track and request that nonlicensed content be taken
down. At the same time, artists
haven’t been compensated for
their music that has been used.
The agreement also comes
a day after Universal reached
a deal with YouTube, with
which the music industry has
a contentious relationship
over intellectual property and
artist compensation. A person
familiar with Universal’s
DIMITRIOS KAMBOURIS/GETTY IMAGES
Facebook Deal Boosts Music Industry
Elton John and Lady Gaga, whose industry has coped with piracy.
thinking said the company
hopes the deal with Facebook
will pressure YouTube into
“cleaning up its act” on its
free video-sharing service,
where the bulk of its listening
happens and where royalties
paid to creators skew comparatively lower from other
streaming platforms.
“One way to get people to
behave is to make a contract.
The other is to enable a significant competitor, and the only
company that YouTube fears is
Facebook,” this person said.
YouTube, a unit of Alphabet Inc., declined to comment.
The deal doesn’t cover the
sort of full-length promotional
music videos like those found
on Vevo. But the companies
are exploring ways to introduce new ways of incorporating music into users’ social
feeds, such as using snippets
of songs the way filters are
used on Instagram.
“Music lovers, artists and
writers will all be right at
home as we open up creativity,
connection and innovation
through music and video,” said
Tamara Hrivnak, a former music industry and YouTube executive who now leads musicbusiness development for
Facebook, in a statement.
Facebook is working to secure deals with the other two
CHINA CIRCUIT | By Li Yuan
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BY JENNIFER SMITH
CHANDAN KHANNA/AGENCE FRANCE-PRESSE/GETTY IMAGES
A furniture factory in Xuzhou, China, prepared last month for a rush of online orders expected as part of a Nov. 11 e-commerce event.
A
n-
and other companies in its
ecosystem.
Just a few years ago,
China had three dominant
internet powers, collectively
known as BAT, with search
engine Baidu joining Alibaba
and Tencent. Baidu, once as
powerful as Google in the
age of the personal
computer, stumbled when
the world moved to
smartphones, and its
valuation has lagged behind.
Now, it is only AT.
libaba and Tencent
grew big by
dominating separate
internet spheres: ecommerce for Alibaba and
games and messaging for
Tencent. They plowed their
huge profits into emerging
internet businesses. As they
did, they increasingly came
to compete head-to-head in
finance, payments, cloud
computing, entertainment,
bike-sharing and meal
delivery. By Tencent’s Mr.
Ma’s own count, the two
companies compete on about
a dozen fronts. “Too much,”
no
In recent
years, tech
titans Alibaba
Group
Holding and
Tencent
Holdings have competed
across a range of mobile
internet businesses. Now the
duopoly that has defined
China’s internet is going to
war.
Industry watchers got a
whiff of the brewing conflict
this month at the World
Internet Conference, an
event backed by the Chinese
government. Alibaba’s Jack
Ma, the face of Chinese
entrepreneurship, was
conspicuously absent from
two high-powered dinners
attended by industry
superstars.
At the head of a table at
one dinner sat Tencent cofounder Pony Ma,
surrounded by the heads of
10 fast-growing Chinese
internet companies—of
which Tencent is an investor
in all but one. They included
ride-sharing company Didi
Chuxing Technology and
lifestyle-services platform
Meituan-Dianping.
On Chinese social media,
the gathering immediately
became known as the “antiAlibaba alliance.”
Then, Tencent went after
Alibaba’s core business,
retail. Tencent said last week
it is acquiring a 5% stake in
supermarket chain Yonghui
Superstores for $638 million.
This week it teamed up with
Alibaba’s chief e-commerce
rival, JD.com, to invest $604
million for a 7% stake in
online discount fashion
retailer Vipshop Holdings.
“It’s a full-blown war,” says
Wu Shichun, founder of
early-stage investor Plum
Ventures.
How this plays out,
investors say, is likely to
reshape China’s business
world and affect the lives of
Chinese.
An Alibaba spokeswoman
sees the rivalry with Tencent
as positive, saying
“competition makes us
better and will ultimately
benefit consumers.” A
Tencent spokeswoman says
the company aims to foster a
healthy environment that
benefits users, developers
Electronic
Logbooks
Stir Up
Trucking
ly
.
Alibaba, Tencent Go to War Over Chinese Web
major recording companies
and major music publishers,
according to people familiar
with the matter, and is willing
to pay hundreds of millions of
dollars to do so.
The deal with Facebook is
also meant to put pressure on
other social-media companies
to license music to their platforms, according to a person
familiar with the matter.
The deal announced Thursday wouldn’t enable Facebook
to start a music-streaming
service, which would require a
different licensing agreement.
Recorded music revenue
has risen in the past two
years and has accelerated this
year thanks to strong growth
in subscription-streaming services like those offered by
Spotify AB and Apple Inc.,
after more than a decade in
decline.
—Deepa Seetharaman
contributed to this article.
Double Play
Tencent and Alibaba, through their popular mobile apps, exert greater
influence on everyday Chinese life than other companies.
Monthly active users, in millions
WeChat (Tencent)
Messenger
QQ (Tencent)
Messenger
iQiyi (Baidu)
Video
495
Tencent Video
Video
491
Taobao (Alibaba)
Shopping
Alipay (Alibaba)
Payment
397
Youku Tudo (Alibaba)
Video
376
Weibo (Sina*)
Social media
374
574
463
319
WiFi Master Key (LinkSure) Wi-Fi
Baidu
899
Search
281
*Alibaba owns 31% of Weibo Note: Data from November 2017
Source: Analysys International
THE WALL STREET JOURNAL.
he told another conference
this month.
They have more influence
in how Chinese eat, shop,
travel and have fun than any
other companies in the
country and arguably more
than the Communist Party.
As the growth in online
users slows, rivalry is
sharpening over control of
the convergence of online
and offline services. That,
tech investors say, is driving
Alibaba and Tencent to try to
take more of the other’s turf.
“In the past, Alibaba and
Tencent were mainly
engaged in proxy fights
[through startups]. Now they
confront each other
directly,” says an investor
who knows both Alibaba’s
Jack Ma and Tencent’s Pony
Ma and has invested
alongside them in startups.
“It’s a world war now.”
I
ncreasingly, everyone,
from startups to publicly
listed tech companies
and brick-and-mortar
retailers, is feeling
compelled to take sides, as
Vipshop did, or risk
becoming collateral damage,
say people in the industry.
Retailers are particular
targets. Alibaba and Tencent
each see payment systems as
crucial—bringing them
money and huge amounts of
consumer data. So they want
to snap up as many points of
sale as they can to the
exclusion of the other.
Follow Li Yuan on Twitter
@LiYuan6 or write to
li.yuan@wsj.com.
A new rule requiring truckers to electronically log their
hours behind the wheel is getting off to a bumpy start for
some drivers, with complaints
arising over technical glitches
and limited customer support
for the devices.
The mandate, which took
effect Monday, is intended to
reduce accidents stemming
from driver fatigue by increasing compliance with limits on
driving time.
Many large trucking companies have used electronic logging devices, or ELDs, for
years. But as recently as last
month, thousands of smaller
fleets and drivers who own
their own vehicles were still
tracking their hours with paper logbooks, which officials
say are easier to falsify.
The transition hasn’t been
smooth. Some truckers report
delays in getting devices delivered, trouble getting units installed or difficulty logging on
to smartphone apps that sync
up with the devices. Others
said they waited for hours on
hold trying to reach customerservice representatives.
“In one day we had 50 calls
complaining about problems
of some sort dealing with
ELDs,” said Norita Taylor, a
spokeswoman for the OwnerOperator Independent Drivers
Association, an industry group
that has opposed the mandate.
Many truckers held off on
buying the units until the last
minute, in hopes the rule
would be delayed or that they
would receive an exemption.
Federal
regulators
have
granted some waivers, such as
for trucks used for short trips.
A spokeswoman for the
Federal Motor Carrier Safety
Administration said the rule
was completed in 2015, giving
truckers two years to get a device. There are over 200 registered ELD vendors, she said.
On Monday, ELD provider
Keep Truckin said on its Facebook page that its customerservice operation was overloaded by new users. The firm
didn’t respond to emails seeking further comment.
BY ALYSSA ABKOWITZ
BEIJING—Chinese
ridesharing platform Didi Chuxing
Technology Co. raised $4 billion in fresh funding, pushing
its valuation closer to rival
Uber Technologies Inc. and
giving it ample money to
spend on self-driving vehicles
and other artificial-intelligence systems.
Investors in Didi’s new
funding include Japanese
mega-fund-manager SoftBank
Group Corp. and Mubadala
Investment Co., an Abu Dhabi
state fund, people familiar
with the matter said Thursday.
The company announced the
funding without naming the
investors.
The injection gives Beijingbased Didi $12 billion in cash
reserves and a valuation of
$56 billion, these people said.
It also means that added together Didi has raised about
$19 billion, the most venture
capital ever raised by a
startup, according to Dow
Jones VentureSource.
While Uber’s valuation was
roughly $68 billion based on
its last funding round in June
2016, a current SoftBank offer
to purchase a sizable stake at
a large discount would lower
the U.S. ride-sharing company’s valuation in the range
of about $50 billion.
With its new financial
power, Didi is in a better position to develop intelligent
driving technologies against
deep-pocketed competitors
such as Alphabet Inc.’s
Waymo LLC, Tesla Inc. and
Chinese internet company
Baidu Inc., industry analysts
and consultants said. Didi,
they said, is escalating its efforts, aided by the data it collects from its more than 450
million active users.
“The penetration of the average user is so much greater
in China than in the U.S., so
you actually could argue Didi
is much better positioned
from a perspective of training
autonomous vehicles,” said
Chris DeAngelis, general manager of consultancy at Alliance
Development Group.
Two years ago Didi’s cash
reserves totaled $3.5 billion.
Much of the new cash Didi
raised will be used to develop
autonomous vehicles, such as
self-driving buses, and developing public-transportation
management programs to dispatch buses, subway trains
and taxis based on traffic pat-
terns, according to people familiar with the matter.
Didi faced a bruising subsidy-fueled battle with Uber
for dominance in China, before
the Chinese company acquired
the U.S. rival’s China operations last year. While Didi has
invested in other ride-sharing
platforms including GrabTaxi
Holdings Pte., which operates
in Thailand, Indonesia and
other Southeast Asian countries, it has primarily focused
on the domestic market.
In March, Didi opened a research-and-development lab in
Silicon Valley, which focuses
on intelligent driving technologies and AI-based security.
The lab now has about 100
employees.
Some of the new funding
will also be spent building an
electric-car charging network.
VCG/GETTY IMAGES
Ride-Sharing App Didi Attracts $4 Billion in New Funding
Didi cars awaited customers in Dalian, China, earlier this year.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Friday, December 22, 2017 | B5
NY
* * * *
BUSINESS NEWS
The Slow Death of the American Mall
By Esther Fung and Yaryna Serkez Illustrations by Merrill Sherman
The rise of online retail and changing consumer preferences have hammered U.S. shopping malls since their heyday in the 1990s.
Many of these former engines of commerce and centers of community life are now mere skeletons as they fight for their lives.
A typical large mall in 1995 included 142 stores spread across 1.2
million square feet, according to a Wall Street Journal analysis of
data on 458 malls. Many of the centers’ traditional retailers have
withered or vanished entirely.
UPPER LEVEL
Average number of stores
that have disappeared from
the mall since 1995:
8 Books and gift stores
3 Anchor stores
16 Shoes and jewelry
14 Womenswear stores
6 Menswear stores
LOWER LEVEL
17 Restaurants
7
14
T-shirts, teen and children's
clothing stores
Beauty stores, vision
centers and other
Toys, music, other specialty
25 stores and arcades
Electronics stores, photo
4 studios and photography stores
Books and gift stores
Anchor stores
Shoes and jewelry stores
Womenswear stores
Menswear stores
Journeys
300
Hallmark
Brighton Collectibles
Go! Games & Toys
Barnes & Noble
Waldenbooks
B. Dalton
200
100
0
1995
2017
1995
Restaurants
300
100
0
1995
2017
Lady Foot Locker
Naturalizer
Kinney Shoes
2017
1995
2017
1995
2017
County Seat
Wilson's Leather
Merry-Go-Round
1995
Beauty stores, vision
centers and other
Hot Topic
PacSun
Children's Place
Starbucks
Subway
Charley's Philly Steaks
Sbarro
Arby's
Original Cookie Co.
200
Vans
T-shirts, teen and
children's clothing stores
400
Charlotte Russe
Forever 21
New York & Company
Lerner New York
The Limited
Casual Corner
Finish Line
JCPenney
Dick's
Target
Burlington Coat
Montgomery Ward
Mervyn's
co Fo
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ci on
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400
Stores with the biggest increase in locations
Stores with the biggest drop in locations
ly
.
Survivors and new players
2017
Toys, music, other speciality
stores and arcades
2017
2017
Electronics, photo studios
and photography stores
Bath & Body Works
Lids
Sephora
Visionworks
Proactiv
Merle Norman
Trade Secrets
Everything's $1.00
1995
1995
GameStop
T-Mobile
Verizon Wireless
RadioShack
Glamour Shots
Babbage's
Yankee Candle
KB Toy
Lechters
Afterthoughts
1995
2017
Zumiez
Men's Wearhouse
Jos. A. Bank
J. Riggings
Structure
Oaktree
1995
2017
Sources and methodology: The Wall Street Journal put together a composite of the typical American mall in 1995, based on average number of stores, by type, for 458 enclosed malls with at least 800,000 square feet
of retail space, and with a food court. Anchor stores are limited to brands with more than 20 stores in our dataset. All data for the analysis was provided by Directory of Major Malls, Inc/ShoppingCenters.com.
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B6 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
* ***
BUSINESS & FINANCE
A Split-Up Fox Brings Challenges
Sale of 21st Century
Fox studio to Disney
raises questions about
the network’s future
pany borrowed $1 billion at an
interest rate of 5%, and its existing interest payments were
already above the 30% threshold, it would have to pay an
extra $10.5 million a year in
taxes—$50 million in interest,
taxed at the new corporate tax
rate of 21%.
That standard will get
tougher: Beginning in 2022,
companies will no longer be
able to strip out depreciation
and amortization costs from
the earnings benchmark they
use for the 30% test. That
change will lower earnings for
the purpose of the earnings
calculation, and thus lower the
level of interest the companies
can deduct.
Congress’s Joint Committee
on Taxation estimates that the
initial measure would raise
no
Continued from page B1
said in its third-quarter Securities and Exchange Commission filing in November that
disallowing tax deductions on
interest “could have a material
adverse effect on our results of
operations and liquidity.” A
J.C. Penney spokesman said it
was “too early to speculate”
how the company’s tax deductions might be affected.
The tax overhaul would essentially limit the net interest
payments a company can deduct to 30% of its Ebitda, or
earnings before interest, taxes,
depreciation and amortization.
Any amount above that level
would be taxable. So if a com-
Declines All Around
Fox’s audience remained the smallest of the big four networks and
had the greatest decrease since 2014.
Change in prime-time
entertainment ratings
Average prime-time viewers*
NBC
CBS
ABC
Fox
10 million
10%
8
0
NBC
-5.6%
–10
–20
6
CBS
-12.4
ABC
-16.1
4
–30
Fox
-29.7
0
2014
’15
’16
’17
2
2014
’15
’16
’17
Note: Total viewers, excluding sports. Seasons run from September through May
*Entertainment programming, doesn’t include sports
Source: Nielsen
THE WALL STREET JOURNAL.
in the early 1990s, he persuaded the Federal Communications Commission to allow
his company to own both a
network and a sister production studio to supply it with
shows.
The logic of having a studio
and network together, as all of
Fox’s major rivals do, is arguably even greater now. Networks rely on their in-house
studios for content, and the
arrangement makes it easier
about $171 billion in tax revenues over 10 years, and the
measure taking effect in 2022
would raise about $307 billion
over 10 years.
Companies that have high
debt because of past deals
could be particularly affected.
First Data Corp., for instance,
has speculative-grade ratings
and nearly $19 billion in debt,
a legacy of its 2007 leveraged
buyout by KKR & Co. First
Data had $964 million in net
interest expense in the 12
months ended Sept. 30, according to its most recent SEC
quarterly filing—an amount
above 30% of its $2.7 billion in
Ebitda.
A First Data spokeswoman
said that “we will need time to
fully understand all aspects of
the bill and its impacts on our
financials.”
The tax bill had good news
for companies as well. It
sharply reduces the corporate
tax rate, to 21% from the current 35%. That shift should
help counterbalance the hit
that companies will take from
making some interest payments taxable.
The First Data spokeswoman said the company was
“clearly pleased” with the reduction in the tax rate.
In addition, the final version of the bill eliminated a
“world-wide” test contained in
earlier versions that would
have limited the deduction of
interest if a company’s U.S. operations were too leveraged
compared with its global position. Dell had feared that provision could have rendered all
of its interest nondeductible,
according to the person familiar with the matter. The final
version of the bill also sides, at
least initially, with Dell and
other companies that wanted
to base the interest-deductibility test on Ebitda, though in
later years it moves to EBIT,
which is costlier and more restrictive.
“We are pleased that the interest provisions were changed
to reduce the adverse impact
ADVERTISEMENT
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PUBLIC NOTICES
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6 7
BY NICK TIMIRAOS
AND ANDREW ACKERMAN
Mortgage-finance companies Fannie Mae and Freddie
Mac will retain some of their
quarterly earnings as part of
an agreement between the
Trump administration and
their regulator to allow the
firms to build a buffer against
future operating losses.
Under the agreement, announced Thursday by the
Treasury Department and the
Federal Housing Finance
Agency, the companies will be
permitted to reserve $3 billion
in capital. The move is designed to protect against
losses coming from “fluctuations in income in the normal
course of each enterprise’s
business,” said FHFA Director
Mel Watt.
In 2012, the Obama administration changed the terms of
the firms’ backstop with the
government to require them to
send most of their profits to
the Treasury as a dividend
payment, replacing a 10% fixed
dividend from the firms’ 2008
government bailout. The capital buffer was set at $3 billion
in 2012 but was on a path to
decline by $600 million every
year, reaching zero by next
ly
.
Fox’s prime-time entertainment programming is averaging 4.6 million viewers in the
TV season that began in September, through early December, a decline of 8% from the
same period a year ago, according to Nielsen. It is second
in the coveted demographic of
adults aged 18-49 if sports are
included.
Besides the Fox channel,
Fox Broadcasting includes 28
local television stations whose
revenue makes the network
profitable.
Fox is banking on several
midseason shows to boost its
ratings. In addition to “LA to
Vegas,” a show about the crew
and passengers who fly the
Los Angeles-Las Vegas route,
the network has a new police
drama called “9-1-1” from acclaimed producer Ryan Murphy, the return of the cult hit
“The X-Files” and a new musical talent show called “The
Four.”
When Mr. Murdoch was
building out the Fox network
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
DEBT
Fox is banking on several new shows to boost its ratings, including a sitcom called ‘LA to Vegas.’
n-
21st Century Fox Executive
Chairman Rupert Murdoch
pushed hard to persuade regulators two decades ago to allow his media company to own
both a television studio and a
broadcast network. Now he is
abandoning the strategy as
Fox’s rivals have come to embrace it.
Mr. Murdoch’s decision to
sell the Twentieth Century
Fox studio to Walt Disney
Co., among other assets, while
retaining the Fox broadcast
network, has raised fears in
Hollywood about the media
company’s commitment to entertainment programming,
and created uncertainty about
the network’s stability and future.
The proposed $52.4 billion
deal with Disney comes as Fox
is entering the TV “pilot” season, when new shows are being developed for the next
season. This year, the network
is under added pressure to
find new hits after a prolonged ratings slump.
“Fox Broadcasting is a big
unknown right now so, as a
producer with a new show
about to debut there, that’s a
concern,” said Steve Levitan,
the co-creator of ABC’s
“Modern Family” who has a
new sitcom called “LA to Vegas” starting on Fox next
month. “Will they remain a
buyer of big, quality dramas
and comedies that bring in
the types of viewers who will
watch our show? I certainly
hope so.”
Landing talent could also be
more difficult. One veteran
show producer said if the
choice of where to put an actor in a pilot came down to
CBS and Fox, it is now an easier call.
FOX
BY JOE FLINT
for them to negotiate rights to
their shows—so they can, for
example, offer past episodes in
an app. That makes the decision to split up the Twentieth
Century Fox studio, which Disney is buying, and Fox especially unusual.
On a call with analysts last
Thursday, Mr. Murdoch offered few specifics about the
future of Fox Broadcasting beyond saying it would continue
to make its own shows and acquire content from independent studios.
“People like Warner Bros.
and Sony will be looking to us
to buy our programs. So I
think we’re in a strong position for buying—for getting all
the programs we need,” Mr.
Murdoch said.
A spokesman for 21st Century Fox declined to comment.
21st Century Fox and Wall
Street Journal parent News
Corp share common ownership.
“There are independent studios out there more than
happy to sell to a network that
has really broad reach and is
an outstanding platform to get
awareness for their content,”
said Peter Liguori a former senior Fox TV executive and former Tribune Media Chief Executive.
Still, some observers question just how committed 21st
Century Fox will be to broadcast television after the deal
closes.
“Rupert Murdoch is the ultimate pragmatist. If he believed that broadcast television was a growth business, he
would have never parted with
the studio,” said Sandy
Grushow, a former chairman
of Fox Entertainment and now
chief executive of Phase Two
Media, an investment and advisory firm.
One possibility, former Fox
executives said, is that a
leaner Fox will rely on more
unscripted, sports and news
content instead of scripted entertainment
programming,
which is more expensive.
U.S. Alters
Payments
For Freddie
And Fannie
LEGAL
NOTICES
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All Rights Reserved.
Hefty Outlays
Dell’s interest expense grew as it
raised debt to fund its September
2016 merger with EMC Corp.
$700 million
600
500
400
300
200
100
0
2015 ’16
’17
Source: S&P Capital IQ
THE WALL STREET JOURNAL.
to Dell and similarly situated
companies,” a Dell spokeswoman said.
In a report earlier this
month when Congress was still
trying to sort out different
House and Senate provisions
on interest deductibility,
Moody’s Investors Service said
many speculative-grade companies would be hurt if deductibility were limited—26%
of them under the House plan
and 36% under the more-restrictive Senate plan, especially those with ratings deep
into junk territory. For most
investment-grade companies,
the benefits of other provisions in the tax bill would outweigh the effect of limiting deductibility, Moody’s said.
Among the sectors most affected, Moody’s said, would be
technology, health care and
aerospace—all sectors with
high leverage and significant
acquisition and leveraged-buyout activity.
The change could weigh on
companies that are already in
weak shape, said John Puchalla, a senior vice president
at Moody’s. It could make
them more vulnerable during
an earnings downturn: If their
earnings decline, interest payments would make up a bigger
chunk of a smaller earnings
base, thus pushing more interest into the zone where it
would be taxed.
Limiting interest deductibility could also affect the private-equity business, Mr. Puchalla said, since its model is
based on borrowing heavily to
buy companies. Private equity
would still be viable even if
some interest is taxed, he said,
but “on the margins, it hurts.”
The companies will
be permitted to keep
$3 billion as a buffer
against losses.
year from its current level of
$600 million.
Every quarter, Fannie and
Freddie send nearly all of their
profits, minus the amount
they are permitted to retain as
capital, to the Treasury as
payment for their continuing
support from the Treasury.
Under the terms of their 2008
conservatorship, the firms
have access to more than $250
billion in support, though because they have been profitable for the past five years,
they haven’t drawn on it since
the 2012 changes were made.
Mr. Watt has said he was
considering changing the arrangement because starting in
January, Fannie and Freddie
would have no capital, raising
the risk that if they don’t have
a quarterly profit, they would
be forced to draw on an existing government backstop. And
while the firms have more
than enough in funding available through an existing Treasury arrangement, Mr. Watt
said he was concerned about
negative ramifications if it
looks like Fannie and Freddie
had to receive another government draw.
The Treasury agreed to
modify the terms of the U.S.
backstop of the companies after discussions initiated earlier this year at the request of
the FHFA, said senior Treasury officials on Thursday.
Fannie and Freddie have reported strong profits in recent
years because they have restructured their underlying
business of guaranteeing
mortgages that are bundled
into securities and sold to investors. They have raised the
fees they charge lenders and
are guaranteeing higher-quality loans than they did before
the housing bubble burst in
2007. Fannie and Freddie don’t
make loans but instead buy
them from lenders.
Through September, Fannie
and Freddie have paid about
$276 billion in dividends to
the Treasury, while they were
forced to borrow some $187
billion in the years after the
2008 financial crisis.
As a result of the changes
announced Thursday, Fannie
will make a $600 million dividend payment to the Treasury
at the end of the month, instead of the $3 billion payment that would have been
owed. Freddie’s dividend payment this month will be $2.3
billion under the revised
terms, instead of the $4.7 billion that would have been due.
“Treasury’s first duty is to
ensure that taxpayers are being protected,” Treasury Secretary Steven Mnuchin said.
Heard on the Street: Housing
finance revamp on tap....... B12
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.
Friday, December 22, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24782.29 s 55.64, or 0.23%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.82 21.72
P/E estimate *
20.09 18.64
Dividend yield
2.12
2.39
All-time high 24792.20, 12/18/17
Nasdaq Composite Index
Last
2684.57 s 5.32, or 0.20%
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
6965.36 s 4.40, or 0.06%
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
22400
2500
6500
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
65-day moving average
65-day moving average
65-day moving average
6375
2450
21700
Bars measure the point change from session's open
Oct.
Nov.
6250
2400
21000
Sept.
Sept.
Dec.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
24850.91 24766.27 24782.29
55.64
0.23
24792.20 19732.40
24.4
25.4
11.7
Transportation Avg 10691.01 10589.01 10629.71
0.97
0.01
10629.71
8783.74
16.0
17.5
5.7
774.47
651.14
8.9
9.0
5.4
27830.03 23276.73
716.60
600.24
18.3
18.5
19.3
19.1
8.9
9.9
Industrial Average
722.24
Utility Average
Total Stock Market
Barron's 400
714.57
27856.10 27750.25 27780.67
717.95
715.36
716.33
Nasdaq Stock Market
Nasdaq Composite
6992.63
Nasdaq 100
6501.52
Standard & Poor's
500 Index
-9.75 -1.34
719.23
6961.21
6467.78
2692.64
2684.57
5.32
MidCap 400
SmallCap 600
1909.10
945.14
1900.89
939.71
1905.18
942.16
5.22
3.96
Other Indexes
Russell 2000
1551.21
1540.46
1547.11
7.03
12826.03 12770.86 12800.22
52.67
0.003
6994.76
6513.27
0.20
2690.16
0.27
1905.30
945.12
0.42
5383.12
4863.62
27.9
31.2
2238.83
1660.58
815.62
29.4
33.1
18.7
19.9
14.1
12.1
14.7
12.4
NYSE Arca Biotech
565.37
562.17
564.24
2.07
4193.87
4163.60
4181.39
8.16
NYSE Arca Pharma
547.46
544.80
546.03
2.22
KBW Bank
108.50
107.21
1.33
PHLX§ Gold/Silver
108.12
83.78
82.52
0.37
PHLX§ Oil Service
83.38
146.92
141.48
146.34
4.88
1287.21
9.86
1270.53
9.20
PHLX§ Semiconductor
Cboe Volatility
0.46
Most-active issues in late trading
Company
13.5
14.8
9.0
9.5
11.2
Volume
(000)
Symbol
Net chg
After Hours
% chg
High
0.41
9,890.5 267.46
-0.12
AT&T
T
4,865.2
38.86
-0.02
-0.05
39.10
38.80
Invitation Homes
INVH
3,973.3
23.41
…
unch.
23.46
23.41
iShares MSCI Emg Markets EEM
3,826.5
46.18
0.07
0.15
46.22
-0.04 267.95 267.02
46.06
General Electric
GE
3,583.3
17.49
0.02
0.11
17.61
17.46
Intel
INTC
3,357.8
46.72
-0.04
-0.09
46.86
46.61
BlackBerry
BB
3,298.0
11.79
-0.01
-0.08
11.94
11.78
Wells Fargo
WFC
2,600.7
61.68
0.07
0.11
61.76
60.63
Percentage gainers…
1548.92
1345.24
13.5
14.0
9.0
73.6
2.77
0.30
12.15
2.77
2.47
SMART Global Holdings SGH
237.0
34.00
2.89
9.29
34.57
31.10
Spectrum Pharmaceuticals SPPI
17.48
KLDX
12800.22 11056.89
44.1
18.34
0.86
4.92
18.34
Gridsum Holding ADR
GSUM
8.8
10.00
0.46
4.82
10.20
9.54
NewStar Financial
NEWS
318.7
12.05
0.33
2.82
12.06
11.72
AIR
18.8
39.90
-4.05
-9.22
44.00
39.50
Nuverra Envtl Solutions NES
19.6
17.95
-0.80
-4.26
17.95
17.95
698.5 103.80
-4.08
-3.78 108.71 101.50
30.80
-1.07
-3.36
32.03
30.75
22.91
-0.76
-3.21
24.50
21.61
15.2
15.8
5.5
564.24
503.24
10.7
11.5
4.1
0.20
4304.77
3075.02
34.5
36.0
5.7
0.41
560.52
469.13
14.2
13.4
0.04
...And losers
108.12
88.02
16.4
17.8
13.5
AAR Corp
96.72
73.03
14.2
5.7
6.3
192.66
117.79
-21.7
-20.4 -12.2
Celgene
CELG
901.69 37.8
9.14 -15.8
40.3 22.8
-31.5 -16.4
World Wrestling
WWE
19.4
CalAmp
CAMP
28.6
1.25
0.45
3.45
1341.69
16.04
Close
Net chg
3077.46
395.43
263.32
The Global Dow
DJ Global Index
DJ Global ex U.S.
Percentage Gainers...
DJ Americas
643.68
Sao Paulo Bovespa 75133.43
S&P/TSX Comp
16182.63
S&P/BMV IPC
48503.31
Santiago IPSA
4124.87
11.65
0.93
0.67
1.79
1766.40
22.96
112.92
–58.93 –1.41
390.69
390.59
3996.00
5385.97
13109.74
1486.94
22240.25
549.39
1126.97
10304.60
578.61
9424.67
7603.98
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
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6060.40
Shanghai Composite 3300.06
Hang Seng
29367.06
S&P BSE Sensex
33756.28
Nikkei Stock Avg
22866.10
Straits Times
3382.53
Kospi
2429.83
Weighted
10488.97
2.32
1.71
1.32
33.20
40.57
8.57
130.60
2.01
–2.36
96.90
4.34
109.84
78.76
YTD
% chg
0.38
0.23
0.25
21.6
21.3
23.1
0.28
2.41
0.14
0.23
19.1
24.7
5.9
6.3
28.0
0.60
0.44
0.03
0.62
0.31
0.58
0.59
0.37
–0.21
0.95
0.75
1.18
1.05
–0.25
–15.20
0.38
12.45
0.45
132.97
–0.06
–21.10
–0.11
–25.62
–0.36
–12.34
–42.54 –1.72
–0.15
–15.55
no
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Latest
% chg
8.1
11.5
10.8
10.8
14.2
1.1
15.6
13.7
–2.2
10.2
8.2
14.7
6.5
n-
Region/Country Index
7.0
6.3
33.5
26.8
19.6
17.4
19.9
13.4
Company
Symbol
Long Island Iced Tea
Broadvision
Nxt-ID
AEterna Zentaris
Gener8 Maritime
LTEA
Sears Hometown Outlet
Embraer ADR
DB Commodity Dbl Long
TapImmune
LexinFintech Holdings ADR
SHOS
Nova Lifestyle
Co-Diagnostics
Yulong Eco-Materials
Apellis Pharmaceuticals
EnviroStar
NVFY
6.91
4.00
4.40
2.70
5.70
BVSN
NXTD
AEZS
GNRT
ERJ
DYY
TPIV
LX
CODX
YECO
APLS
EVI
High
4.47 183.20
1.25 45.45
1.22 38.36
0.69 34.33
1.33 30.43
52-Week
Low
% chg
9.49
5.95
8.59
4.25
6.16
Symbol
Bank of America
Nxt-ID
General Electric
SPDR S&P 500
PG&E
BAC
57.0
-18.4
59.4
-34.1
33.8
Wins Finance Holdings
Dolphin Entertainment
LongFin Cl A
Future FinTech Group
Riot Blockchain
WINS
Micron Technology
Finl Select Sector SPDR
Intel
iShares MSCI Emg Markets
Comcast Cl A
MU
GNC Holdings A
Apogee Enterprises
Payment Data Systems
Eltek
Marathon Patent Group
GNC
2.87
2.80
3.12
16.58
42.90
0.44
0.42
0.45
2.31
5.90
18.11
17.65
16.85
16.19
15.95
3.10 1.06
6.85 2.35
9.00 0.50
16.81 12.45
43.10 14.05
28.7
...
-30.7
...
192.8
China Finance Online ADR
Presbia
PG&E
Advaxis Inc.
U.S. Global Investors A
JRJC
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
Volume % chg from Latest Session
(000) 65-day avg Close % chg
23.1
-22.7
40.4
-30.0
29.0
44.42 -2.91
28.13 0.86
46.76 -1.68
46.11 0.65
40.81 3.63
52-Week
High
Low
29.98 21.77
8.59
1.01
32.05 17.36
268.60 222.73
71.57 41.61
49.89
28.33
47.64
47.93
42.18
21.49
22.00
33.23
33.94
34.12
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
5.00%
4.00
3.00
5-year Treasury
t note yield
2.00
1.00
J FMAM J J A S ON D
2017
Florence Savings Bank
Florence, MA
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
Clinton Savings Bank
Clinton, MA
3.13%
888-744-4272
Epic Funding
Fort Myers, FL
3.13%
800-530-2680
10
2.25
5
1.50
One year ago
0.75
0
–5
0.00
–10
t
Langley Federal Credit Union
3.00%
Newport News, VA
800-826-7490
1
3 6
month(s)
15%
3.00
Thursday
2.88%
800-644-8261
t
t
Third Federal Savings and Loan
2.84%
Cleveland, OH
866-627-1785
1 2 3 5 710
years
maturity
30
Euro
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 1.25-1.50
Prime rate*
4.50
4.50
Libor, 3-month
1.60
1.67
Money market, annual yield
0.34
0.34
Five-year CD, annual yield
1.49
1.49
30-year mortgage, fixed†
3.90
3.97
15-year mortgage, fixed†
3.32
3.40
Jumbo mortgages, $424,100-plus† 4.34
4.28
Five-year adj mortgage (ARM)† 4.03
3.68
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
1.67
0.36
1.50
4.33
3.50
4.87
4.03
3.36
1.25
1.25
1.42
-0.09
-0.02
-0.12
0.05
-0.06
0.63
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
1454.012
2.305
2.196
2.311
1.818
2.901 1.405
10-yr Treasury, Ryan ALM 1717.503
DJ Corporate
380.247
Aggregate, Barclays Capital 1936.320
High Yield 100, Merrill Lynch 2855.680
Fixed-Rate MBS, Barclays 1981.940
Muni Master, Merrill
518.945
2.483
3.184
2.770
5.630
2.990
2.270
2.346
3.098
2.670
5.575
2.860
2.137
2.609
3.390
2.790
5.890
3.120
2.363
2.058
2.879
2.380
4.948
2.660
1.736
2.888
6.163
3.764
6.733
2.926
4.438
805.476
5.575
5.547
6.123
5.279
9.510 6.849
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
0.974
3.782
2.132
4.694
1.805
2.362
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
52-Week
Low
% chg
-48.06
-42.75
-32.98
-25.12
-23.59
465.00 19.80
14.00 2.04
142.82 4.69
8.20 1.30
46.20 3.02
5.9
-66.0
...
-54.5
666.7
-1.13
-8.56
-0.51
-0.71
-0.80
-23.06
-16.82
-14.87
-14.49
-14.04
13.03 3.61
61.00 40.03
4.10 1.17
8.95 2.65
10.03 0.50
-68.9
-20.9
68.8
2.2
-19.9
2.83
3.75
PCG
44.50
ADXS
2.96
GROW
4.72
-0.45
-0.59
-6.62
-0.44
-0.68
-13.72
-13.59
-12.95
-12.94
-12.59
4.14 1.32
7.14 1.86
71.57 41.61
10.06 2.71
7.49 1.25
-24.5
6.8
-27.4
-58.9
260.3
PYDS
ELTK
MARA
LENS
Ranked by change from 65-day average*
Company
Symbol
PS Variable Rate Inv Grd
Videocon d2h ADR
Guggenheim DJIA Dividend
Net Element
Community Healthcare Tr
VRIG
Apogee Enterprises
Embraer ADR
Eaton Vance Mun Bd Fd II
CSP
Duff Phelps
APOG
Country/currency
VDTH
DJD
NETE
CHCT
ERJ
EIV
CSPI
DNP
Volume % chg from Latest Session
(000) 65-day avg Close % chg
1,402
1,880
83
11,965
2,211
2290
1627
1501
1365
1222
2,498
16,849
248
48
2,763
967
959
945
848
825
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
0.24
0.22
0.17
-3.30
0.10
25.22
9.12
34.41
18.75
28.64
42.32 -16.82
24.42 22.16
12.26 0.97
13.00 14.14
10.35 -4.43
52-Week
High
Low
25.35 24.98
11.74 7.85
34.78 28.66
33.51 2.56
30.64 21.33
61.00
26.25
12.95
13.88
11.57
40.03
17.58
11.87
8.25
10.21
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0558 17.9332 13.0
Brazil real
.3022 3.3093 1.7
Canada dollar
.7850 1.2739 –5.2
Chile peso
.001612 620.50 –7.4
Ecuador US dollar
1
1 unch
Mexico peso
.0514 19.4655 –6.1
Uruguay peso
.03471 28.8100 –1.8
Venezuela b. fuerte .096669 10.3446 3.5
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
.7703 1.2982 –6.5
China yuan
.1519 6.5843 –5.2
Hong Kong dollar
.1279 7.8185 0.8
India rupee
.01562 64.020 –5.8
Indonesia rupiah .0000737 13571 0.3
Japan yen
.008824 113.33 –3.1
Kazakhstan tenge .002993 334.16 0.1
Macau pataca
.1242 8.0547 1.7
Malaysia ringgit
.2452 4.0780 –9.1
New Zealand dollar
.7019 1.4247 –1.3
Pakistan rupee
.00904 110.640 6.0
Philippines peso
.0199 50.191 1.2
Singapore dollar
.7442 1.3437 –7.2
South Korea won .0009255 1080.54 –10.5
Sri Lanka rupee
.0065385 152.94 3.0
Taiwan dollar
.03336 29.976 –7.6
Thailand baht
.03056 32.720 –8.6
Vietnam dong
.00004402 22715 –0.2
Commodities
.04616 21.664 –15.7
.1595 6.2696 –11.3
1.1876 .8421 –11.4
.003803 262.92 –10.7
.009455 105.76 –6.4
.1197 8.3573 –3.3
.2829 3.5345 –15.6
.01711 58.457 –4.6
.1194 8.3786 –8.0
1.0118 .9883 –3.0
.2618 3.8192 8.4
.0360 27.7690 2.5
1.3385 .7471 –7.8
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6532 .3769 –0.1
.0560 17.8640 –1.5
.2869 3.4853 –9.4
3.3116 .3020 –1.2
2.5974 .3850 0.01
.2748 3.639 –0.04
.2666 3.7507 unch
.0784 12.7599 –6.8
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.77 –0.06–0.07 –6.64
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Thursday
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
High
U.S.-dollar foreign-exchange rates in late New York trading
s
5-year adjustablerate mortgage
(ARM)
Latest Session
Close Net chg % chg
Currencies
Forex Race
3.75%
4.03%
* 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.
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
* Volumes of 100,000 shares or more are rounded to the nearest thousand
notes and bonds
Bankrate.com avg†:
NYSE Arca
3.77
42.32
2.92
4.19
4.90
APOG
Volume Movers
s
U.S. consumer rates
RIOT
-46.0
32.4
5.4
-15.9
...
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
FTFT
5.33 1.38
26.25 17.58
4.77 2.08
5.35 2.60
...
...
48,604
XLF
44,945
INTC
39,580
EEM
36,776
CMCSA 33,597
PCG
LFIN
22.73
22.16
21.32
20.19
18.89
29.82 1.15
4.40 38.36
17.47 0.11
267.58 0.21
44.50 -12.95
SPY
Nasdaq
Total volume*1,793,448,567 199,482,345
Adv. volume*1,035,554,420 142,048,252
Decl. volume* 729,987,184 56,263,388
Issues traded
3,086
1,325
Advances
1,818
935
Declines
1,130
368
Unchanged
138
22
New highs
105
104
New lows
37
23
Closing tick
308
20
Closing Arms†
1.13
1.02
Block trades*
6,585
1,237
187.00 -173.00
3.75 -2.80
45.91 -22.59
3.25 -1.09
27.60 -8.52
DLPN
0.50
4.43
0.61
0.65
1.70
4.2
4452.7
-14.8
-18.9
759.2
GE
Symbol
2.70
24.42
3.49
3.87
10.70
71,902
67,909
64,280
56,078
52,142
NXTD
Company
1.70
2.66
1.01
0.78
4.11
Most Active Stocks
Company
Total volume* 778,124,983 13,575,600
Adv. volume* 544,950,893 7,936,411
Decl. volume* 217,992,899 5,376,240
Issues traded
3,082
335
Advances
1,797
193
Declines
1,163
120
Unchanged
122
22
New highs
192
6
New lows
42
21
Closing tick
128
17
Closing Arms†
0.61
1.08
Block trades*
6,561
171
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
SPY
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Interest rate
Last
SPDR S&P 500
0.37
1271.81 -13.63 -1.06
9.62 -0.10 -1.03
Philadelphia Stock Exchange
NYSE NYSE Amer.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
NYSE Composite
Americas
Brazil
Canada
Mexico
Chile
0.06
Volume, Advancers, Decliners
Klondex Mines
Value Line
World
0.23
4.40
0.21
6965.36
6472.69
2682.40
0.23
64.73
1.62
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.
605.22
1.33
187.74
58.36
2.598
1267.30
0.65
0.27
-0.039
1.20
0.22
616.58
532.01
0.35 195.14
58.95
0.46
3.93
-1.48
0.09 1346.00
166.50
42.53
2.56
1128.80
% Chg
7.89
YTD
% chg
6.69
-1.35 -2.48
8.64
10.22
-26.57 -30.24
12.27 10.20
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B8 | Friday, December 22, 2017
COMMODITIES
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
3.1695
3.1905
3.1630
3.1945 0.0230
March'18 3.1960 3.2200
3.1825
3.2195 0.0235
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1266.40 1267.40
1264.30 1267.30
1.20
Feb'18
1268.80 1272.50
1266.00 1270.60
1.00
April
1273.90 1276.80
1271.50 1275.30
1.10
June
1278.70 1281.40
1276.20 1279.80
1.20
Aug
1283.20 1283.20
1280.70 1284.20
1.20
Dec
1292.40 1294.60
1289.90 1293.20
1.00
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
...
...
... 1043.00
5.05
March'18 1021.65 1031.00 s 1019.05 1029.65
5.05
June
1014.15 1022.60 s
1014.15 1022.90
5.10
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
918.80 –1.80
April'18
924.60
925.70
917.20
921.50 –3.70
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
16.095
16.120
16.095
16.152 –0.036
March'18 16.235 16.305
16.140
16.239 –0.036
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Feb
58.02
58.38
57.63
58.36
0.27
March
58.05
58.42
57.68
58.40
0.27
April
58.04
58.40
57.69
58.39
0.28
May
57.95
58.31
57.63
58.30
0.26
June
57.81
58.15
57.48
58.13
0.25
Dec
56.04
56.39
55.84
56.38
0.24
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9442
1.9516
1.9325
1.9502 .0060
Feb
1.9458
1.9543
1.9349
1.9528 .0063
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.7369
1.7517
1.7278
1.7476 .0123
Feb
1.7444
1.7591
1.7367
1.7555 .0108
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.654
2.669
t
2.568
2.598 –.039
Feb
2.650
2.660
t
2.562
2.592 –.044
March
2.614
2.626
t
2.532
2.559 –.045
April
2.551
2.561
t
2.487
2.510 –.034
May
2.566
2.576
t
2.504
2.528 –.030
Oct
2.665
2.670
t
2.604
2.631 –.029
Settle
Open
interest
Chg
Agriculture Futures
Open
interest
Corn (CBT)-5,000 bu.; cents per bu.
1,481
149,142
March
July
349.00
366.00
March
May
244.50
250.25
Jan
March
953.50
964.00
Jan
March
315.70
319.90
Jan
March
32.96
33.11
Jan
March
1180.00
1210.00
351.75
368.50
348.50
365.50
351.25
367.75
242.75
249.50
244.00
250.00
–1.00
–1.50
948.75
959.00
–5.25 132,902
–5.50 297,711
314.20
318.10
–1.50 46,620
–1.60 169,939
32.67
32.83
–.29 47,140
–.30 201,057
Oats (CBT)-5,000 bu.; cents per bu.
249
331,453
33,297
36,892
11,858
26,031
245.75
251.50
Soybeans (CBT)-5,000 bu.; cents per bu.
956.75
967.50
947.50
958.00
Soybean Meal (CBT)-100 tons; $ per ton.
23
33,900
1,419
316.90
320.90
313.80
317.70
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.01
33.18
32.51
32.67
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
3
55,453
1204.50
1231.50
1177.00
1207.50
1199.50
1228.00
Wheat (CBT)-5,000 bu.; cents per bu.
367
162,303
510,084
362,145
164,194
128,554
251,720
251,270
March
May
424.00
436.50
March
May
422.00
435.50
March
May
617.75
625.00
Jan
March
142.100
139.875
Dec
Feb'18
119.600
118.950
427.50
439.75
422.50
434.75
15.50
15.50
3,592
6,283
3.50 307,237
2.75 86,827
424.25
437.25
1.75 199,244
1.75 53,752
617.00
625.25
–.75
–.75
41,180
12,856
142.925
140.400
1.150
.650
13,019
22,916
420.50
433.75
Wheat (MPLS)-5,000 bu.; cents per bu.
621.00
629.00
4,747
1,438
427.00
439.00
Wheat (KC)-5,000 bu.; cents per bu.
425.50
438.50
2.00 858,696
1.75 241,269
616.50
624.75
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
55,517
124,846
143.175
140.775
141.050
138.800
48,371
127,059
Cattle-Live (CME)-40,000 lbs.; cents per lb.
68,883
367,064
281,740
160,171
127,624
80,540
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Feb
April
68.600
73.000
Jan
March
429.80
425.30
119.875
119.875
118.750
118.450
69.300
73.575
119.625
119.675
68.150
72.775
.225
3,133
.725 123,745
68.575
73.075
.200
.125
88,548
59,374
440.60
435.90
10.00
10.00
2,200
3,323
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
440.60
435.90
429.00
425.30
Cash Prices | WSJ.com/commodities
Thursday, December 21, 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.
Thursday
Thursday
16.1450
12101
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
0.9559
1.0105
2.600
2.550
2.560
2.320
2.480
2.050
2.480
59.850
12.100
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Other metals
LBMA Platinum Price PM
*920.0
Platinum,Engelhard industrial
920.0
Platinum,Engelhard fabricated
1020.0
Palladium,Engelhard industrial
1038.0
Palladium,Engelhard fabricated
1138.0
Aluminum, LME, $ per metric ton
*2092.0
Copper,Comex spot
3.1945
Iron Ore, 62% Fe CFR China-s
74.0
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
645
Gold, per troy oz
1268.80
1363.96
1264.55
1403.65
*1265.95
*1264.55
1318.20
1330.88
1330.88
1536.22
1245.40
1330.88
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.1600
19.3920
16.2000
20.2500
£12.0800
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
309.70
9.1500
7.3950
4.3200
4.0725
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
183.23
167.96
0.8668
2.1800
140.25
144.25
66.00
2112
1.2255
1.4230
1.6750
15.20
n.a.
60.94
n.a.
0.8195
120.00
167.75
0.6200
0.7719
*85.75
64.500
n.a.
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
Grains and Feeds
4.85
113
3.2250
98.8
482.4
233
88
228
2.7150
384.00
25.00
8.0575
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
Fats and Oils
34.7000
0.2300
n.a.
0.3180
0.2650
0.3000
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
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 12/20
Source: WSJ Market Data Group
December 21, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Nov. index
level
Week
Latest ago
Chg From (%)
Oct. '17 Nov. '16
U.S. consumer price index
0.002
–0.06
246.669
253.492
All items
Core
2.2
1.7
Latest
0.00
0.50
0.00
0.50
1.49
0.48
1.25
0.00
0.50
1.4200
1.5625
1.3000
1.4100
1.4200
1.4200
1.6125
1.3000
1.4100
1.4200
1.4200
1.6125
1.3000
1.4100
1.4200
0.5900
0.8125
0.4000
0.4000
0.5800
1.245 1.240 1.300 0.400
Largest 100 exchange-traded funds, latest session
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
10.71
99.17
56.78
71.82
28.13
100.97
83.18
75.38
108.91
104.51
121.82
65.63
55.66
62.36
269.53
190.07
77.26
61.29
108.82
98.08
72.35
52.66
12.18
120.56
86.92
115.36
106.24
71.92
69.93
63.65
46.11
43.51
59.73
106.80
109.97
135.22
149.00
124.43
187.59
153.47
126.82
158.60
207.87
88.85
216.62
153.48
114.32
38.19
113.11
–0.28 –15.0
0.65 21.8
9.8
–0.07
2.12 –4.6
0.86 21.0
0.20 16.5
–0.23 20.7
0.08 21.2
0.7
0.03
0.04 –0.4
–0.03 –0.6
0.41 22.4
0.69 31.1
0.45 23.5
0.20 19.8
0.24 15.0
0.40 12.4
0.26 19.5
0.7
0.09
–0.02 10.7
0.15 18.2
–0.06 16.5
9.9
0.25
2.9
0.27
0.4
0.10
4.7
–0.01
0.06 –0.1
0.33 21.5
0.36 21.1
0.39 27.7
0.65 31.7
0.21 25.8
0.07 22.2
0.77 20.7
1.7
0.16
–0.01 28.9
0.23 19.7
0.44 11.1
0.37 21.9
0.44 13.8
6.6
0.53
0.23 19.3
0.19 16.2
0.37 10.5
0.13 18.9
–0.10 26.0
0.49 12.8
2.6
0.05
0.27 –0.1
ETF
Closing Chg YTD
Symbol Price (%) (%)
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Open
interest
3,779
3,780
141,543
49,622
127,932
46,088
407,278
163,821
3,489
2,185
170,189
49,057
1,364
6,124
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
150-170 151-080
149-310 150-000
150-150
149-310
151-060
150-040
20.0 754,809
19.0
9
March
June
123-145 123-200
123-045 123-050
123-125
123-015
123-165
123-050
2.0 3,260,173
.5
330
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Contract
High hilo
Low
Open
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-070 116-070
116-055 116-057
–1.0 22,874
March'18 115-305 116-012
115-282 115-297
–.7 3,034,262
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-077 107-077
107-072 107-072
–1.0 11,106
March'18 107-017 107-027
107-007 107-007
–1.0 1,748,898
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.703
98.703
98.700
98.703
… 102,893
Jan'18
98.595
98.595
t 98.590
98.595
… 280,693
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
March
97.531
97.625
t 97.422
97.609
.109 24,325
1 Month Libor (CME)-$3,000,000; pts of 100%
Feb
98.4550 98.4675
t 98.4550 98.4650
…
2,379
Eurodollar (CME)-$1,000,000; pts of 100%
Jan
98.3175 98.3200
t 98.3075 98.3150 –.0050 215,839
March
98.2150 98.2150
98.2050 98.2050 –.0050 1,418,595
June
98.0550 98.0650
t 98.0450 98.0500 –.0050 1,305,156
Dec
97.8550 97.8650
97.8350 97.8350 –.0150 1,468,237
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
Settle
Chg
Open
interest
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Jan
March
.8837
.8869
.8849
.8880
.8826
.8847
.8845
.8871
.0008
2,304
.0008 228,377
Jan
March
.7804
.7805
.7876
.7889
.7799
.7802
.7862
.7869
.0061
1,169
.0061 107,878
Jan
March
1.3380
1.3422
1.3409
1.3440
1.3370
1.3382
1.3408 –.0006
2,545
1.3435 –.0006 185,969
March
Sept'19
1.0211
1.0637
1.0219
1.0637 s
1.0164
1.0626
1.0194 –.0016
1.0664 –.0016
Jan
Feb
March
April
June
Sept
.7667
.7671
.7665
.7687
.7655
.7700
.7708
.7707
.7706
.7704 s
.7703
.7741
.7655
.7661
.7652
.7653
.7655
.7680
March
June
.05127
.04990
.05129
.05043
Jan
March
1.1908
1.1947
1.1920
1.1964
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7706
.7705
.7704
.7703
.7703
.7703
Mexican Peso (CME)-MXN 500,000; $ per MXN
t
Euro (CME)-€125,000; $ per €
March
June
78,338
13
.0038
1,369
.0038
506
.0038 101,851
.0038
18
.0038
302
.0038
64
.05046
.04966
.05064 –.00058 181,745
.04983 –.00057
18
1.1882
1.1925
1.1904 –.0006
7,793
1.1948 –.0005 465,512
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
March
June
24736
24751
24860 s
24870 s
24714
24735
24778
24795
March
2682.10
2695.50 s
2681.00
2687.80
6.20
March
June
2681.50
2683.00
2696.00 s
2697.50 s
2680.75
2682.75
2687.75
2689.50
6.25 2,999,594
6.00 18,864
March
1902.90
1913.00
1901.50
1908.80
4.40
March
June
6486.8
6505.5
6476.0
6496.8
6492.3
6510.5
March
1540.70
1555.70
1539.10
1550.40
March
1488.00
1491.70
1487.50
1488.80
3.40
91
March
June
92.93
92.66
93.10
92.66
92.82
92.64
92.86
92.54
–.03
–.02
42,322
1,002
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
39 144,422
39
177
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
6520.8 s
6539.3 s
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
48,082
92,390
3.3 287,844
2.3
586
10.40
23,128
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.0
1936.32
2.770 2.380 2.790
U.S. Aggregate
1981.94
1948.46
U.S. Corporate Indexes Bloomberg Barclays
YTD total
return (%)
2.1
Mortgage-Backed
1.5
Ginnie Mae (GNMA) 2.940 2.630 3.090
2.3
Fannie mae (FNMA) 3.000 2.670 3.120
2.4
Freddie Mac (FHLMC) 3.010 2.680 3.130
3.310 3.030 3.500
1162.42
2.930 2.530 2.990
1790.27
10.5 Long term
4.110 3.990 4.680
518.95
4.0 Muni Master
2.270 1.736 2.363
4.1 Double-A-rated
2.760 2.470 2.870
362.61
4.4 7-12 year
2.302 1.744 2.443
3.610 3.340 3.830
408.45
5.9
12-22 year
2.589 2.213 2.872
396.64
6.9
22-plus year
2.932 2.716 3.449
3.6
3885.88
566.80
6.4
Triple-B-rated
High Yield Bonds Merrill Lynch
7.3
416.82
2.990 2.660 3.120
U.S. Corporate
2612.50
718.65
Yield (%)
Latest Low High
Index
Intermediate
5.7
2782.04
Total
return
close
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
High Yield Constrained 5.811 5.373 6.204
Global Government J.P. Morgan†
Triple-C-rated
10.632 9.584 11.473
543.19
1.2
2855.68
6.4
High Yield 100
5.630 4.948 5.890
755.46
0.3
Canada
2.070 1.570 2.190
378.30
7.4
Global High Yield Constrained 5.269 4.934 5.862
372.11
0.9
EMU§
1.081 0.933 1.363
306.05
6.6
Europe High Yield Constrained 2.445 1.897 3.300
713.58
1.0
France
0.810 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
8.9
419.03
508.12
U.S Agency Bloomberg Barclays
1634.08
1.8
U.S Agency
2.230 1.690 2.230
288.40
1460.64
1.0
10-20 years
2.090 1.490 2.090
561.38
3356.48
7.4
20-plus years
3.000 2.730 3.420
922.34
3.000 2.610 3.050
805.48
4.7 Yankee
2455.06
Global Government 1.460 1.300 1.560
-1.3
0.1
-0.9
1.0
9.0
Emerging Markets ** 5.575 5.279 6.123
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
83.82
105.00
124.60
120.64
101.68
157.55
47.45
22.97
36.56
120.31
33.81
64.68
63.93
247.66
345.93
267.58
94.01
64.58
52.37
22.63
166.54
132.99
160.93
101.89
44.48
45.06
58.75
70.64
54.21
141.24
155.01
85.65
83.68
87.19
122.96
154.56
111.46
81.27
247.06
79.11
79.36
147.93
81.33
54.98
56.30
137.57
73.97
106.45
64.71
59.75
31.84
–0.01
–0.22
0.58
–0.02
...
0.01
–0.36
...
0.03
0.14
0.27
0.22
0.19
0.24
0.22
0.21
0.13
–0.20
–1.19
0.58
–0.25
0.37
0.34
0.01
0.32
0.99
0.46
0.87
0.45
0.06
–0.15
0.14
0.05
0.07
0.20
0.23
0.41
–0.39
0.20
–0.03
–0.09
0.40
0.06
–0.09
0.50
0.23
0.28
0.32
0.17
0.02
0.25
–0.7
0.2
4.6
23.9
0.3
33.0
14.1
–1.7
0.3
9.8
22.1
19.4
20.0
25.4
14.6
19.7
9.9
33.5
7.8
8.2
37.1
9.9
20.9
19.6
21.7
25.9
22.5
19.0
22.7
26.7
22.3
13.0
0.7
1.7
20.1
17.4
14.7
–1.5
20.3
–0.4
–0.0
14.7
0.7
1.3
22.7
19.3
21.3
14.5
12.7
20.6
13.5
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.750
2.250
0.000
3.543 3.464 3.865 3.253
3.576 3.483 3.899 3.281
30 days
60 days
Week
ago
Latest
52-Week
high
low
3.25
3.25
3.25
2.50
1.52
1.67
90 days
1.67
0.72
1.192
2.539
1.975 s
2.674 s
l
1.946
1.781
1.880
9.8
9.4
68.8
l
2.642
2.559
2.836
19.5
14.1
29.7
France 2 -0.507 s
10 0.740 s
l
-0.517
-0.588
l
0.739
0.665
Germany 2 -0.649 s
10 0.420 s
l
-0.669
-0.710
l
0.406
Italy 2 -0.214 s
10 1.908 t
l
l
Japan 2 -0.147 t
10 0.059 s
l
l
0.055
0.031
Spain 2 -0.384 t
10 1.468 t
l
-0.377
-0.355
-0.272
l
1.492
1.483
1.361
0.469 t
1.265 s
l
0.473
0.483
0.083
l
1.254
1.277
1.246
2.050
0.100
2.750
1.450
Call money
1.780
2.357
0.050
0.100
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.853
2.501
10
0.500
Year ago
l
Australia 2
30-year mortgage yields
Month ago
U.S. 2 1.878 s
10 2.479 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
2.750
Fannie Mae
1.750
U.K. 2
4.250
10
-0.673 -238.4
0.693
-174.0
-237.0
-186.5
-176.2
-184.6
-0.788 -252.6
0.246 -206.0
-252.2
-198.0
0.355
-209.5
-229.3
-0.220
-0.303
-0.163
-209.1
-207.3
-135.5
1.937
1.777
1.822
-57.2
-56.4
-71.7
-0.145
-0.194
-0.180
-202.4
-199.8
-137.2
0.063 -242.0
-226.2
-101.1
-140.9
-121.5
-244.6
-247.6
-222.9
-146.4
-100.9
-117.8
-138.0
-110.9
-124.7
-129.2
Source: Tullett Prebon
Corporate Debt
Libor
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Thursday, December 21, 2017
Closing Chg YTD
Symbol Price (%) (%)
Milk (CME)-200,000 lbs., cents per lb.
15.43
15.46
15.43
15.44
…
Dec
Feb'18
13.60
13.77
13.59
13.70
.14
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,919
1,919
1,863
1,907
–24
March
May
1,915
1,915
1,866
1,908
–17
Coffee (ICE-US)-37,500 lbs.; cents per lb.
122.70
123.55
121.30
122.25
–.90
March
May
125.10
125.80
123.60
124.55
–.90
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
14.59
14.82
14.41
14.77
.20
March
May
14.41
14.65
14.24
14.61
.21
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
26.90
26.90
26.90
26.98
…
March
May
27.18
27.18
27.18
27.18
–.02
Cotton (ICE-US)-50,000 lbs.; cents per lb.
75.63
78.07 s
75.41
77.94
2.23
March
May
76.15
78.16 s
75.95
77.96
1.84
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
138.90
139.75
136.40
137.05 –1.90
Jan
March
138.30
138.50
136.10
136.45 –1.90
0.750
Commercial paper (AA financial)
Treasury bill auction
4 weeks
1.355 1.320 1.355 0.505
1.480 1.460 1.480 0.590
13 weeks
26 weeks
Other short-term rates
n-
Effective rate
High
Low
Bid
Offer
2.00
no
0.00
0.50
0.25
1.50
—52-WEEK—
High Low
Secondary market
2.00
2.00
Federal funds
Policy Rates
0.50
1.50
1.41
1.49
U.S.
Discount
4.50 4.50 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Euro zone
Switzerland
0.50
1.50
0.50
1.50
Week
Latest ago
Overnight repurchase
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
U.S. government rates
International rates
Week
ago
Britain
Australia
Chg
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Inflation
Settle
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Fibers and Textiles
Metals
Thursday
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
Contract
High hilo
Low
Open
ly
.
Futures Contracts
WSJ.com/commodities
One month
Three month
Six month
One year
1.55213
1.67464
1.82488
2.09091
1.49078
1.60042
1.76769
2.04263
1.55213
1.67464
1.82488
2.09091
0.75611
0.99706
1.31600
1.68456
-0.416
-0.385
-0.319
-0.245
-0.408
-0.384
-0.318
-0.259
-0.376
-0.334
-0.227
-0.086
-0.417
-0.387
-0.325
-0.261
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
-0.369
-0.329
-0.271
-0.186
One month
Three month
Six month
One year
Latest
-0.371
-0.331
-0.271
-0.192
Value
Traded
-0.366
-0.316
-0.216
-0.081
-0.375
-0.332
-0.276
-0.194
52-Week
High
Low
DTCC GCF Repo Index
1.501
1.513
Treasury
MBS
37.950 1.501 0.471
89.900 1.541 0.496
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Dec
Treasury Jan
Treasury Feb
98.655 -0.005 3909 1.345
98.560 0.005 2028 1.440
98.550 unch. 813 1.450
Weekly survey
Latest
Week ago Year ago
Freddie Mac
30-year fixed
15-year fixed
Five-year ARM
3.94
3.38
3.39
3.93
3.36
3.36
4.30
3.52
3.32
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.
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Lloyds Bank
Teva Pharma III
Pfizer
Gilead Sciences
LLOYDS
GE Capital International Funding Unlimited
Oracle
Viacom
Verizon Communications
GE
TEVA
PFE
GILD
ORCL
VIA
VZ
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
2.700 Aug. 17, ’20
3.150
Oct. 1, ’26
4.000 Dec. 15, ’36
2.950 March 1, ’27
22
310
49
72
–31
–15
–14
–13
54
325
60
78
...
18.50
36.24
73.02
...
6.02
–0.60
–1.34
2.342
4.500
4.850
4.400
40
86
243
144
–11
–11
–11
–11
52
n.a.
n.a.
152
17.47
47.28
35.45
53.01
0.11
–1.29
1.58
0.45
11.37
53.01
97.91
38.88
–0.09
0.45
0.51
0.86
1174.76
154.64
...
60.53
–0.24
1.39
...
0.75
Nov. 15, ’20
July 8, ’44
Dec. 15, ’34
Nov. 1, ’34
…And spreads that widened the most
Pitney Bowes
Verizon Communications
Abbvie
AT&T
PBI
Amazon.com
Caterpillar
Credit Agricole
CBS
AMZN
VZ
ABBV
T
CAT
ACAFP
CBS
4.625 March 15, ’24
2.450
Nov. 1, ’22
2.900
Nov. 6, ’22
2.450 June 30, ’20
407
70
65
49
8
8
n.a.
56
69
54
3.800
3.803
7.875
3.700
36
65
246
77
7
6
5
5
n.a.
70
264
n.a.
Dec. 5, ’24
Aug. 15, ’42
Jan. 23, ’49
Aug. 15, ’24
31
13
High-yield issues with the biggest price increases…
Issuer
Symbol
Chemours
Centurylink
Frontier Communications
Teck Resources
CC
Chs/Community Health Systems
Valeant Pharmaceuticals International
Noble Holding International
Charter Communications Operating
CYH
CTL
FTR
TCKBCN
VRXCN
NE
CHTR
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
5.375 May 15, ’27
7.600 Sept. 15, ’39
7.125 Jan. 15, ’23
6.250 July 15, ’41
106.486
89.075
68.000
114.250
7.125 July 15, ’20
5.875 May 15, ’23
4.625 March 1, ’21
5.375
May 1, ’47
75.250
93.250
94.250
101.990
2.49
2.20
Last week
Stock Performance
Close ($)
% chg
1.50
1.50
103.959
87.000
69.438
114.313
49.02
17.47
7.11
...
–0.81
1.87
–3.13
...
1.47
1.22
1.00
0.87
74.750
90.750
93.875
102.362
4.00
...
4.17
332.94
–0.74
...
4.25
5.23
…And with the biggest price decreases
DBD
6.750
5.750
6.250
8.500
Feb. 1, ’24
Jan. 15, ’25
Oct. 15, ’21
April 15, ’24
102.000
94.250
109.345
106.375
–1.00
–0.78
–0.66
–0.63
102.720
96.250
109.875
106.750
52.56
15.10
...
17.35
1.08
0.20
...
1.46
DISH
5.875
Nov. 15, ’24
97.250
–0.60
98.450
49.12
0.86
Icahn Enterprises
Calpine
ADT
Diebold Nixdorf
IEP
Dish DBS
CPN
ADT
*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.
Friday, December 22, 2017 | B9
BIGGEST 1,000 STOCKS
WSJ.com/stocks
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.
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.
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 26.61 0.05
AECOM
ACM 37.10 0.03
AES
AES 10.62 0.04
Aflac
AFL 87.11 -0.25
AGNC Invt AGNC 20.19 0.06
Ansys
ANSS 147.23 -0.12
ASML
ASML 174.54 -0.63
AT&T
T
38.88 0.33
AbbottLabs ABT 56.93 -0.09
AbbVie
ABBV 97.91 0.50
Abiomed
ABMD 190.63 -3.06
s Accenture ACN 154.20 2.45
ActivisionBliz ATVI 65.08 0.70
AcuityBrands AYI 172.41 1.64
Adient
ADNT 80.32 -0.59
AdobeSystems ADBE 174.56 0.31
AdvanceAuto AAP 100.13 1.60
AdvMicroDevices AMD 10.89 -0.09
AdvSemiEngg ASX 6.43 0.04
Aegon
AEG 6.26
...
AerCap
AER 52.98 0.29
Aetna
AET 180.73 1.18
AffiliatedMgrs AMG 201.88 -0.71
AgilentTechs A
67.52 0.12
AgnicoEagle AEM 44.54 0.21
Agrium
AGU 112.17 1.93
AirProducts APD 163.16 0.33
AkamaiTech AKAM 65.84 -0.79
AlaskaAir ALK 74.69 0.92
Albemarle ALB 128.65 -2.68
Alcoa
AA 48.99 -0.27
AlexandriaRlEst ARE 128.83 0.20
AlexionPharm ALXN 118.24 -0.11
Alibaba
BABA 175.32 2.68
AlignTech ALGN 218.76-14.89
Alkermes ALKS 52.52 0.40
Alleghany Y
586.33 2.58
Allegion
ALLE 81.00
...
Allergan
AGN 167.63 1.92
AllianceData ADS 249.78 2.63
AlliantEnergy LNT 42.32 -0.19
AllisonTransm ALSN 43.01 -0.09
s Allstate
ALL 104.21 -0.21
s AllyFinancial ALLY 29.17 0.14
AlnylamPharm ALNY 122.83 0.86
Alphabet A GOOGL 1070.85 -2.71
Alphabet C GOOG 1063.63 -1.32
Altaba
AABA 71.59 0.69
AlticeUSA ATUS 20.97 0.63
Altria
MO 71.94 -0.66
AlumofChina ACH 17.84 0.37
Amazon.com AMZN 1174.76 -2.86
Ambev
ABEV 6.26 0.02
Amdocs
DOX 65.77 0.02
Amerco
UHAL 379.91 -3.40
Ameren
AEE 58.37 -0.32
AmericaMovil AMX 17.02 -0.22
AmericaMovil A AMOV 16.98 -0.28
AmerAirlines AAL 52.79 0.87
AEP
AEP 73.74 -0.76
AmerExpress AXP 98.50 -0.01
s AmericanFin AFG 108.00 1.81
AmerHomes4Rent AMH 21.98 0.26
AIG
AIG 60.08 0.08
AmerTowerREIT AMT 139.61 -0.58
AmerWaterWorks AWK 89.70 0.36
Ameriprise AMP 171.70 0.60
AmerisourceBrgn ABC 92.99 -0.75
Ametek
AME 72.62 0.14
Amgen
AMGN 176.68 -0.43
Amphenol APH 88.45 -0.19
AnadarkoPetrol APC 51.96 1.23
AnalogDevices ADI 88.65
...
Andeavor ANDV 111.02 0.09
AndeavorLog ANDX 46.41 0.24
AB InBev BUD 111.35 -0.28
AnnalyCap NLY 12.05 0.12
Anthem
ANTM 225.08 -2.84
Aon
AON 135.34 -1.05
Apache
APA 43.31 2.05
ApartmtInv AIV 43.15 -0.11
s ApolloGlbMgmt APO 33.66 1.05
Apple
AAPL 175.01 0.66
ApplMaterials AMAT 51.89 -1.40
Aptiv
APTV 84.98 -0.89
s AquaAmerica WTR 38.33 0.57
Aramark
ARMK 42.88 -0.04
s ArcelorMittal MT 32.79 0.63
ArchCapital ACGL 89.50 -0.05
ArcherDaniels ADM 40.09 0.22
Arconic
ARNC 26.80 0.67
AristaNetworks ANET 235.96 1.81
ArrowElec ARW 80.63 0.08
AstraZeneca AZN 33.44 0.43
Athene
ATH 52.34 1.58
Atlassian
TEAM 46.41 -0.28
AtmosEnergy ATO 84.86 -1.69
Autodesk ADSK 104.43 -0.60
Autohome ATHM 65.35 0.91
Autoliv
ALV 128.19 0.89
ADP
ADP 117.40 -0.46
AutoZone AZO 705.91 5.01
Avalonbay AVB 175.55 -2.07
Avangrid
AGR 50.60 -0.53
AveryDennison AVY 114.02 -2.66
AxaltaCoating AXTA 31.95
...
BB&T
BBT 50.39 0.55
BCE
BCE 47.34 0.23
s BHPBilliton BHP 45.06 0.92
s BHPBilliton BBL 39.49 0.88
BOK Fin
BOKF 93.41 0.96
s BP
BP 41.68 0.73
BRF
BRFS 10.93 0.12
BT Group BT 18.26 0.19
BWX Tech BWXT 60.67 -0.35
Baidu
BIDU 239.49 6.12
BakerHughes BHGE 32.30 -0.44
Ball
BLL 37.63 -0.36
BancoBilbaoViz BBVA 8.66 0.07
BancodeChile BCH 94.00 -0.59
BancoMacro BMA 116.77 -0.42
BcoSantChile BSAC 30.97 -0.90
BancoSantander SAN 6.69 0.04
BanColombia CIB 40.21 0.50
s BankofAmerica BAC 29.82 0.34
s BankofMontreal BMO 79.38 0.57
Stock
Net
Sym Close Chg
BankNY Mellon BK 54.36 0.41
BkNovaScotia BNS 64.66 0.60
BankofOzarks OZRK 49.20 0.80
Barclays
BCS 10.91 0.07
Bard CR
BCR 331.40 -1.16
BarrickGold ABX 14.43 0.01
BaxterIntl BAX 64.53 -0.76
BectonDicknsn BDX 217.78 -1.21
Berkley
WRB 70.72 -0.03
BerkHathwy B BRK.B 198.89 1.10
BerkHathwy A BRK.A 2982001700.00
BerryGlobal BERY 59.27 0.09
s BestBuy
BBY 67.08 0.35
Bio-RadLab A BIO 245.04 -0.25
Biogen
BIIB 322.52-10.95
BioMarinPharm BMRN 91.55 0.44
BlackKnight BKI 44.00
...
BlackBerry BB 11.80 -0.37
BlackRock BLK 513.59 -0.96
Blackstone BX 32.90 0.91
BlockHR
HRB 26.70 -1.15
BlueBuffaloPet BUFF 31.87 0.16
bluebirdbio BLUE 185.35 0.10
Boeing
BA 295.03 -2.87
BorgWarner BWA 52.00 -1.06
BostonProps BXP 126.94 -0.91
BostonSci BSX 25.14 -0.23
Braskem
BAK 26.40
...
s BrightHorizons BFAM 94.22 -0.47
BrighthouseFin BHF 60.39 2.25
Bristol-Myers BMY 61.50 0.30
BritishAmTob BTI 66.70 0.74
Broadcom AVGO 261.53 -4.11
s BroadridgeFinl BR 91.61 0.45
BrookfieldMgt BAM 42.90 -0.26
BrookfieldInfr BIP 43.48 -0.62
Brown&Brown BRO 51.35 -0.04
Brown-Forman A BF.A 65.60 -1.14
Brown-Forman B BF.B 67.39 -0.18
BuckeyePtrs BPL 47.78 0.09
Bunge
BG 66.99 -0.26
s BurlingtonStrs BURL 118.96 1.48
CA
CA 33.51 -0.04
CBD Pao
CBD 22.03 0.17
CBRE Group CBG 43.32 0.05
CBS B
CBS 60.53 0.45
CBS A
CBS.A 61.00 0.52
CDK Global CDK 71.43 -0.05
CDW
CDW 69.09 -1.31
CF Industries CF 41.25 0.37
s CGI Group GIB 54.65 0.34
CH Robinson CHRW 87.13 0.38
CIT Group CIT 49.66 0.32
CME Group CME 150.88 1.44
CMS Energy CMS 47.26 0.10
CNA Fin
CNA 52.36 -0.13
CNOOC
CEO 141.26 1.81
CRH
CRH 35.24 0.48
CSX
CSX 54.88 -0.53
CVS Health CVS 74.64 1.08
CabotOil
COG 27.72 0.75
CadenceDesign CDNS 42.48 -0.73
CaesarsEnt CZR 12.75 0.05
s CalAtlantic CAA 56.84 1.01
CamdenProperty CPT 89.81 -0.51
CampbellSoup CPB 48.67 0.34
s CIBC
CM 96.91 1.72
CanNtlRlwy CNI 81.63 0.23
CanNaturalRes CNQ 34.83 0.60
s CanPacRlwy CP 182.40 2.06
Canon
CAJ 38.46 0.13
CapitalOne COF 99.52 0.93
CardinalHealth CAH 62.68 -0.78
Carlisle
CSL 114.25 0.89
Carlyle
CG 22.70 0.60
CarMax
KMX 66.00 -2.47
Carnival
CCL 66.34 -1.36
Carnival
CUK 65.86 -1.32
s Caterpillar CAT 154.64 2.12
Cavium
CAVM 85.23 -0.42
CboeGlobalMkts CBOE 124.63 0.40
Celanese A CE 106.44 -1.28
Celgene
CELG 107.88 -0.39
Cemex
CX
7.54 0.02
CenovusEnergy CVE 8.80 0.16
Centene
CNC 102.59 -0.36
CenterPointEner CNP 27.77 -0.25
CentraisElBras EBR 5.51 0.35
CenturyLink CTL 17.47 0.32
Cerner
CERN 67.89 -0.63
CharterComms CHTR 332.94 16.56
CheckPoint CHKP 103.21 -1.16
Chemours CC 49.02 -0.40
s CheniereEnergy LNG 51.64 2.28
CheniereEnerPtrs CQP 27.81 0.25
CheniereEnHldgs CQH 27.15 0.24
s Chevron
CVX 124.82 3.93
s ChinaEastrnAir CEA 35.30 0.62
ChinaLifeIns LFC 15.77 0.28
ChinaLodging HTHT 137.39 2.34
ChinaMobile CHL 49.52 0.05
ChinaPetrol SNP 73.27 1.69
s ChinaSoAirlines ZNH 51.93 0.14
ChinaTelecom CHA 47.72 0.04
ChinaUnicom CHU 13.48 0.12
Chipotle
CMG 292.40 -6.27
Chubb
CB 145.01 -0.96
ChunghwaTel CHT 35.05 -0.06
Church&Dwight CHD 49.50 0.02
Cigna
CI 204.52 -1.51
CimarexEnergy XEC 118.78 3.90
CincinnatiFin CINF 73.66 0.21
Cintas
CTAS 159.65 0.56
s CiscoSystems CSCO 38.53 -0.21
Citigroup
C
75.82 1.16
s CitizensFin CFG 42.60 0.67
CitrixSystems CTXS 88.14
...
s Clorox
CLX 148.78 0.39
Coca-Cola KO 45.60 -0.48
Coca-Cola Euro CCE 39.37 -0.10
Coca-Cola Femsa KOF 69.14 0.07
Cognex
CGNX 61.94 -0.16
CognizantTech CTSH 72.40 -0.31
Coherent
COHR 294.04 -2.02
ColgatePalm CL 74.66 0.14
t ColonyNorthStar CLNS 11.80 0.17
Comcast A CMCSA 40.81 1.43
s Comerica
CMA 87.66 1.10
CommerceBcshrs CBSH 56.79 0.60
CommScope COMM 38.42 0.20
Net
Sym Close Chg
Stock
SABESP
SBS 10.38
ConagraBrands CAG 37.85
s ConchoRscs CXO 149.83
s ConocoPhillips COP 55.95
ConEd
ED 84.79
ConstBrands A STZ 224.60
ContinentalRscs CLR 51.25
Cooper
COO 221.77
Copart
CPRT 43.41
Corning
GLW 32.30
CoStar
CSGP 298.58
Costco
COST 186.80
Coty
COTY 19.75
Credicorp
BAP 200.08
CreditAcceptance CACC 329.77
s CreditSuisse CS 18.02
CrownCastle CCI 108.18
CrownHoldings CCK 56.25
Ctrip.com CTRP 44.75
Cullen/Frost CFR 96.99
Cummins
CMI 174.66
D E F
DISH Network DISH 49.12
DTE Energy DTE 108.25
DXC Tech DXC 96.32
Danaher
DHR 93.82
Darden
DRI 95.06
s DaVita
DVA 71.90
s Deere
DE 155.86
DellTechs DVMT 82.54
s DeltaAir
DAL 56.03
DentsplySirona XRAY 65.50
DeutscheBank DB 19.70
DevonEnergy DVN 40.92
s Diageo
DEO 142.87
s DiamondbkEner FANG123.10
DigitalRealty DLR 109.31
DiscoverFinSvcs DFS 76.04
DiscovComm C DISCK 22.16
DiscovComm A DISCA 23.36
Disney
DIS 109.57
DolbyLab
DLB 62.21
DollarGeneral DG 91.64
DollarTree DLTR 108.47
DominionEner D
80.65
Domino's
DPZ 188.39
Donaldson DCI 49.11
DouglasEmmett DEI 40.20
s Dover
DOV 100.86
DowDuPont DWDP 71.64
DrPepperSnap DPS 95.80
DrReddy'sLab RDY 36.38
DukeEnergy DUK 84.30
DukeRealty DRE 26.79
ENI
E
33.41
EOG Rscs EOG 106.35
EQT
EQT 55.42
E*TRADE ETFC 49.96
EXACT Sci EXAS 54.23
EastWestBncp EWBC 61.41
EastmanChem EMN 92.91
Eaton
ETN 78.10
EatonVance EV 56.71
eBay
EBAY 37.81
Ecolab
ECL 133.51
s Ecopetrol
EC 13.60
t EdisonInt
EIX 63.31
EdwardsLife EW 113.30
ElbitSystems ESLT 133.31
ElectronicArts EA 107.97
s EmersonElec EMR 69.58
EnbridgeEnPtrs EEP 13.87
Enbridge
ENB 38.66
Encana
ECA 12.54
EnelAmericas ENIA 10.55
EnelGenChile EOCC 26.30
EnergyTransferEq ETE 16.81
EnergyTransfer ETP 17.53
Entergy
ETR 80.12
EnterpriseProd EPD 26.10
Equifax
EFX 119.57
Equinix
EQIX 445.89
EquityLife ELS 87.73
EquityResdntl EQR 63.39
Ericsson
ERIC 6.66
EssexProp ESS 237.57
EsteeLauder EL 127.58
EverestRe RE 218.44
EversourceEner ES 61.98
Exelixis
EXEL 27.81
Exelon
EXC 39.07
Expedia
EXPE 120.07
ExpeditorsIntl EXPD 64.15
s ExpressScripts ESRX 74.46
ExtraSpaceSt EXR 85.17
ExxonMobil XOM 83.85
F5Networks FFIV 132.36
FMC
FMC 95.14
Facebook
FB 177.45
FactSet
FDS 191.06
Fastenal
FAST 54.11
FederalRealty FRT 129.32
s FedEx
FDX 250.17
Ferrari
RACE 106.21
s FiatChrysler FCAU 18.40
FibriaCelulose FBR 14.93
FidNatlFin FNF 38.75
FidNatlInfo FIS 94.86
FifthThirdBncp FITB 30.93
58.com
WUBA 70.58
FirstAmerFin FAF 56.08
FirstData
FDC 16.42
FirstRepBank FRC 87.89
FirstSolar FSLR 69.11
FirstEnergy FE 30.59
Fiserv
FISV 130.63
FleetCorTech FLT 191.18
Flex
FLEX 18.18
FlirSystems FLIR 47.37
Fluor
FLR 51.26
FomentoEconMex FMX 92.70
FordMotor F
12.63
ForestCIty A FCE.A 23.84
Fortinet
FTNT 43.99
Fortis
FTS 36.20
Fortive
FTV 72.80
s FortBrandsHome FBHS 69.32
Franco-Nevada FNV 77.71
0.09
-0.29
3.02
1.70
-0.12
1.09
1.64
-2.84
-0.39
-0.12
1.66
-0.71
0.30
-4.83
0.10
0.41
0.29
-0.33
0.35
1.03
-0.49
FranklinRscs BEN 43.84 0.15
s FreeportMcM FCX 18.18 0.52
FreseniusMed FMS 52.01 0.09
G H I
GGP
GGP 23.07
Gallagher AJG 62.98
Gaming&Leisure GLPI 36.45
Gap
GPS 34.45
s GardnerDenver GDI 34.43
Garmin
GRMN 59.17
Gartner
IT 123.02
Gazit-Globe GZT 10.42
GeneralDynamics GD 202.48
GeneralElec GE 17.47
GeneralMills GIS 59.53
GeneralMotors GM 42.16
Genpact
G
32.48
Gentex
GNTX 20.84
GenuineParts GPC 94.53
Gerdau
GGB 3.74
Gildan
GIL 32.17
GileadSciences GILD 73.02
GSK
GSK 35.55
GlobalPayments GPN 100.37
GoDaddy
GDDY 49.73
Goldcorp
GG 12.48
s GoldmanSachs GS 261.01
Goodyear GT 32.57
Graco
GGG 134.89
Grainger
GWW 235.02
GreatPlainsEner GXP 31.93
Grifols
GRFS 22.18
GrubHub
GRUB 71.44
GpoAeroportuar PAC 102.17
GpoAvalAcc AVAL 8.62
GpoFinGalicia GGAL 64.87
GpFinSantMex BSMX 7.37
GrupoTelevisa TV 19.12
HCA Healthcare HCA 87.84
HCP
HCP 25.60
HDFC Bank HDB 100.14
HD Supply HDS 39.68
HP
HPQ 21.25
HSBC
HSBC 51.47
Halliburton HAL 48.17
Hanesbrands HBI 20.19
HarleyDavidson HOG 51.81
Harris
HRS 142.79
HartfordFinl HIG 55.93
Hasbro
HAS 92.84
HealthcareAmer HTA 29.74
Heico A
HEI.A 79.15
Heico
HEI 94.54
Helm&Payne HP 63.63
HenrySchein HSIC 71.16
Herbalife
HLF 68.81
Hershey
HSY 114.66
Hess
HES 46.34
HewlettPackard HPE 14.72
s Hilton
HLT 79.37
s HollyFrontier HFC 50.15
Hologic
HOLX 43.25
s HomeDepot HD 188.08
HondaMotor HMC 34.18
Honeywell HON 153.72
HormelFoods HRL 36.41
DR Horton DHI 50.93
HostHotels HST 20.05
HuanengPower HNP 25.22
s Hubbell
HUBB 135.22
Humana
HUM 243.58
JBHunt
JBHT 112.72
HuntingtonBcshs HBAN 14.84
HuntingIngalls HII 235.38
Huntsman HUN 33.04
HyattHotels H
72.99
IAC/InterActive IAC 127.00
ICICI Bank IBN 9.78
IdexxLab
IDXX 157.28
IHSMarkit INFO 45.04
ING Groep ING 18.55
Invesco
IVZ 36.61
IPG Photonics IPGP 211.93
IQVIA
IQV 100.14
IRSA Prop IRCP 56.50
IcahnEnterprises IEP 52.56
Icon
ICLR 112.67
IDEX
IEX 132.97
IllinoisToolWks ITW 168.26
Illumina
ILMN 214.57
ImperialOil IMO 29.99
Incyte
INCY 96.36
s Infosys
INFY 16.09
Ingersoll-Rand IR
90.38
Ingredion
INGR 141.48
Intel
INTC 46.76
InteractiveBrkrs IBKR 59.91
ICE
ICE 70.11
s InterContinentl IHG 62.90
IBM
IBM 151.50
IntlFlavors IFF 151.86
IntlPaper
IP
57.48
Interpublic IPG 20.23
Intuit
INTU 158.62
IntuitiveSurgical ISRG 361.33
InvitatHomes INVH 23.41
IonisPharma IONS 51.40
IronMountain IRM 37.15
IsraelChemicals ICL
4.03
ItauUnibanco ITUB 12.92
+0.02 32.9
+0.06
+0.06
+0.07
...
+0.15
+0.11
-1.32
+0.27
+0.16
-0.01
+0.13
+0.06
-2.26
+0.01
-1.07
+0.23
+0.01
+0.14
22.4
17.7
15.3
2.8
13.7
24.2
29.7
23.4
26.4
6.4
19.9
12.9
28.6
35.2
31.5
26.4
4.8
20.3
+0.01
+0.02
3.7
4.2
BlackRock Funds A
19.67
GlblAlloc p
BlackRock Funds Inst
EqtyDivd
22.69
19.78
GlblAlloc
StratIncOpptyIns 9.95
Bridge Builder Trust
NA
CoreBond
Dimensional Fds
10.86
5GlbFxdInc
EmgMktVa
30.56
EmMktCorEq 22.70
14.42
IntlCoreEq
IntlVal
20.39
20.97
IntSmCo
IntSmVa
22.66
22.88
US CoreEq1
US CoreEq2 21.66
US Small
36.23
US SmCpVal 38.26
25.03
US TgdVal
39.32
USLgVa
Dodge & Cox
Balanced
107.24
Income
+0.05 13.1 Intl Stk
Stock
... 16.3
+0.05 13.4
+0.01 4.7
...
...
+0.10
+0.05
+0.08
+0.13
+0.10
+0.12
+0.07
+0.08
+0.18
+0.29
+0.19
+0.27
M N
O P Q
Data provided by
Thursday, December 21, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
43.76
Ultra
American Funds Cl A
31.59
AmcpA p
40.80
AMutlA p
27.12
BalA p
12.84
BondA p
CapIBA p
63.97
CapWGrA
50.91
EupacA p
55.79
FdInvA p
62.24
49.63
GwthA p
10.36
HI TrA p
40.45
ICAA p
23.28
IncoA p
43.06
N PerA p
48.59
NEcoA p
66.38
NwWrldA
55.63
SmCpA p
TxExA p
12.96
WshA p
45.68
Baird Funds
AggBdInst
10.85
11.21
CorBdInst
LKQ
LKQ 40.90
L3 Tech
LLL 195.28
LabCpAm LH 161.38
LamResearch LRCX 185.64
LamarAdv LAMR 73.75
LambWeston LW 55.43
LasVegasSands LVS 70.30
Lazard
LAZ 50.96
s Lear
LEA 180.00
Leggett&Platt LEG 47.39
s Leidos
LDOS 65.10
s Lennar A
LEN 63.75
Lennar B
LEN.B 50.35
LennoxIntl LII 207.45
LeucadiaNatl LUK 26.46
LibertyBroadbandA LBRDA 84.33
LibertyBroadbandC LBRDK 84.58
LibertyGlobal A LBTYA 34.12
LibertyGlobal C LBTYK 32.83
LibertyGlobal B LBTYB 34.70
LibertyLiLAC A LILA 21.89
LibertyLiLAC C LILAK 21.58
s LibertyQVC A QVCA 26.63
LibertyVenturesA LVNTA 57.50
LibertyFormOne C FWONK 34.77
LibertyFormOne A FWONA 33.06
LibertyBraves A BATRA 22.78
LibertyBraves C BATRK 22.80
LibertySirius C LSXMK 39.18
LibertySirius A LSXMA 39.33
LibertyProperty LPT 42.81
EliLilly
LLY 85.61
LincolnElectric LECO 91.08
LincolnNational LNC 77.94
LionsGate A LGF.A 33.74
LionsGate B LGF.B 31.67
LiveNationEnt LYV 43.10
LloydsBanking LYG 3.67
LockheedMartin LMT 317.19
Loews
L
49.79
LogMeIn
LOGM 113.55
s Lowe's
LOW 90.73
s lululemon LULU 77.74
LyondellBasell LYB 110.28
J K L
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
Net
Sym Close Chg
0.16
1.18
-1.65
-3.19
-0.70
-0.55
-0.46
0.79
0.13
0.36
0.07
1.19
0.69
-0.02
0.04
3.25
3.34
1.42
1.10
1.30
...
0.05
0.17
1.94
0.71
0.45
-0.47
-0.43
0.18
0.12
-0.09
-0.13
0.12
0.53
0.73
0.76
-0.27
0.04
-0.53
0.28
0.45
0.54
0.86
0.36
0.42
...
0.94
M&T Bank MTB 173.59 1.06
-0.80
MGM Resorts MGM 33.73 0.57
-0.61
MPLX
MPLX 36.31 0.14
0.15
MSCI
MSCI 128.62 0.46
1.49
Macerich
MAC 64.41 -0.24
-0.81
Macy's
M
25.57 0.24
-0.19
MagellanMid MMP 68.56 0.08
-0.65
s MagnaIntl MGA 57.83 0.34
-0.01
Manpower MAN 127.38 0.04
1.08
ManulifeFin MFC 21.11 0.24
0.38
MarathonOil MRO 17.05 0.73
5.86
s MarathonPetrol MPC 66.33 0.67
-1.11
Markel
MKL1124.16 -6.97
0.30
MarketAxess MKTX 201.72 -1.19
1.04
s Marriott
MAR 133.95 0.11
0.99
Marsh&McLen MMC 80.71 -1.41
-0.12
MartinMarietta MLM 210.49 5.85
-0.36
MarvellTech MRVL 22.05 -0.26
-0.09
s Masco
MAS 44.24 0.57
-0.45
Mastercard MA 150.53 -0.92
0.06
MatchGroup MTCH 31.91 0.22
4.77
MaximIntProducts MXIM 53.03 -0.36
0.26
McCormickVtg MKC.V 101.96 0.50
-0.22
McCormick MKC 101.15 -0.25
1.35
McDonalds MCD 171.85 -0.32
0.37
McKesson MCK 159.39 -1.25
-0.18
Medtronic MDT 81.48 0.10
-0.37
s MelcoResorts MLCO 28.58 0.11
-0.19
MercadoLibre MELI 318.54 3.64
-0.23
Merck
MRK 56.60 0.49
0.37
MetLife
MET 51.03 0.02
2.81
MettlerToledo MTD 618.43 -8.23
1.20
s MichaelKors KORS 64.03 0.31
0.42
MicroFocus MFGP 33.14 0.04
0.50
MicrochipTech MCHP 89.46 -0.76
0.45
MicronTech MU 44.42 -1.33
-0.12
Microsemi MSCC 52.57 -0.37
0.95
Microsoft MSFT 85.50 -0.02
-0.33
MidAmApt MAA 98.77 -0.71
-0.12
Middleby
MIDD 131.04 -0.05
-0.57
MitsubishiUFJ MTU 7.35
...
0.13
MizuhoFin
MFG
3.70 -0.01
-4.99
MobileTeleSys MBT 9.92 0.22
-0.85
MohawkInds MHK 277.86 0.31
-1.19
MolsonCoors B TAP 81.18 0.59
-0.48
MolsonCoors A TAP.A 87.83 4.73
0.62
Mondelez MDLZ 43.10 0.15
-0.13
Monsanto MON 115.47 0.47
0.13
MonsterBev MNST 63.81 -0.21
0.48
Moody's
MCO 147.48 -0.99
-0.05
MorganStanley MS 52.88 0.37
0.06
Mosaic
MOS 25.24 0.76
-0.01
MotorolaSol MSI 91.62 -0.48
0.06
Mylan
MYL 41.96 0.74
-0.08
NRG Energy NRG 27.46 0.46
0.10
NTTDoCoMo DCM 23.67 0.05
0.68
NVR
NVR 3496.20 76.20
-1.31
NXP Semi NXPI 116.70 -0.04
-1.01
Nasdaq
NDAQ 75.40 0.35
-0.42
NationalGrid NGG 57.95 -0.35
0.14
NatlOilwell
NOV
35.55 1.23
-2.73
NatlRetailProp NNN 41.89 -0.49
-0.11
NektarTherap NKTR 57.42 -0.46
1.93
NetApp
NTAP 56.21 -0.83
-0.24
s
Netease
NTES 371.36 8.93
-0.21
Netflix
NFLX 188.62 -0.20
0.03
Neurocrine NBIX 71.68 0.27
0.06
NewOrientalEduc
EDU 92.19 0.38
-0.33 JD.com
JD 42.27 0.11
0.47 JPMorganChase JPM 107.83 1.69 NY CmntyBcp NYCB 13.35 0.09
-0.49 JackHenry JKHY 117.41 -0.41 NewellBrands NWL 30.75 0.54
0.98 JacobsEngg JEC 66.48 0.09 NewfieldExpln NFX 31.01 0.58
0.91 s JamesHardie JHX 17.50 0.46 NewmontMin NEM 36.73 0.12
0.22 JanusHenderson JHG 38.31 0.14 NewsCorp B NWS 16.65 0.05
-0.44 JazzPharma JAZZ 133.51 2.45 NewsCorp A NWSA 16.34 0.10
-3.90 JetBlue
JBLU 22.43 0.47 NextEraEnergy NEE 154.48 0.84
0.56 J&J
JNJ 141.06 -0.10 NielsenHoldings NLSN 36.45 0.23
NKE 64.77 1.18
-1.20 JohnsonControls JCI 38.00 0.35 Nike
NI
24.66 -0.30
-0.90 JonesLang JLL 149.27 0.87 NiSource
NobleEnergy
NBL 28.70 0.84
0.65 JuniperNetworks JNPR 28.68 0.18
Nokia
NOK
4.79 0.17
0.05 s KAR Auction KAR 51.43 0.59
0.12 KB Fin
KB 57.47 -0.39 NomuraHoldings NMR 5.93 0.02
NDSN 144.69 1.59
-0.37 KKR
KKR 21.15 0.24 Nordson
-0.22 KLA Tencor KLAC 108.62 -3.83 Nordstrom JWN 47.50 0.66
s
NorfolkSouthern
NSC 144.28 -0.56
0.42 KT
KT 15.59
...
s
-0.32 KSCitySouthern KSU 108.62 -2.07 NorthernTrust NTRS 100.05 1.61
NorthropGrum NOC 304.49 -2.13
-0.43 Kellogg
K
67.65 0.78
t
0.25 s KeyCorp
KEY 20.43 0.34 NorwegCruise NCLH 54.14 -0.68
NVS 83.49 0.44
-0.12 KeysightTechs KEYS 42.62 -0.31 Novartis
s
0.42 KilroyRealty KRC 72.93 -0.25 NovoNordisk NVO 53.32 0.65
NUE 64.53 0.68
... KimberlyClark KMB 120.28 -0.17 Nucor
NVDA 195.89 -0.91
-0.96 KimcoRealty KIM 17.95 -0.08 NVIDIA
1.01 KinderMorgan KMI 18.07 0.31
-0.30 Knight-Swift KNX 43.70 -0.49
0.23 Kohl's
KSS 53.47 0.34 t OGE Energy OGE 32.66 -0.31
0.36 KoninklijkePhil PHG 37.90 -0.25 ONEOK
OKE 52.22 0.71
0.04 KoreaElcPwr KEP 17.92 -0.14 OReillyAuto ORLY 241.50 -0.55
-0.09 KraftHeinz KHC 77.88 0.50 OccidentalPetrol OXY 72.58 0.70
0.18 Kroger
KR 27.55 0.23 OldDomFreight ODFL 129.57 0.23
-0.88 Kyocera
KYO 66.81 0.33 Omnicom OMC 74.08 0.08
0.18 LATAMAirlines LTM 13.59 -0.23 ON Semi
ON 20.90 -0.06
-0.19 L Brands
LB 60.59 0.19 OpenText OTEX 32.71 -0.02
1.42 LG Display LPL 13.50 -0.06 Oracle
ORCL 47.28 -0.62
0.57 LINE
LN 41.16 0.34 Orange
ORAN 17.47 0.07
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
-0.03
-1.23
-0.03
0.13
0.42
0.37
-0.64
...
1.18
0.02
0.77
-0.36
-0.06
0.10
1.31
0.07
-0.01
-0.99
0.20
-1.35
-0.67
-0.02
5.83
0.15
1.52
4.08
-0.36
0.23
-2.65
-2.58
...
-1.11
-0.25
...
1.39
-0.24
0.03
0.24
-0.21
0.37
0.75
-0.11
1.10
0.45
-0.42
1.73
-0.14
-2.15
-2.35
2.46
0.06
0.58
-0.33
2.35
0.01
1.02
0.69
-0.19
0.77
0.06
-1.01
-0.14
0.15
...
0.01
0.55
-1.58
-0.03
0.20
-2.64
-0.20
1.39
0.03
0.04
-1.40
-0.39
0.09
0.09
0.13
-0.18
-0.49
0.56
-1.88
0.47
-0.29
-1.87
0.29
2.33
0.09
3.17
0.46
-0.80
0.41
0.09
1.09
-1.45
-1.21
-0.49
0.08
-0.73
-5.88
0.08
0.67
-0.03
0.02
0.47
Stock
Net
Sym Close Chg
Stock
OrbitalATK OA 132.25
Orix
IX
84.98
Oshkosh
OSK 91.11
s OwensCorning OC 91.70
t PG&E
PCG 44.50
PLDT
PHI 29.42
PNC Fin
PNC 146.26
POSCO
PKX 78.42
PPG Ind
PPG 116.18
t PPL
PPL 31.19
PTC
PTC 60.05
PVH
PVH 135.61
Paccar
PCAR 71.23
s PackagingCpAm PKG 120.30
PacWestBancorp PACW 50.48
PaloAltoNtwks PANW 146.61
ParkHotels PK 29.05
s ParkerHannifin PH 199.69
ParsleyEnergy PE 29.21
Paychex
PAYX 68.64
PayPal
PYPL 74.02
Pearson
PSO 9.72
PembinaPipeline PBA 35.33
Pentair
PNR 70.17
People'sUtdFin PBCT 19.02
PepsiCo
PEP 118.26
PerkinElmer PKI 73.28
Perrigo
PRGO 87.18
PetroChina PTR 70.07
PetroleoBrasil PBR 10.12
PetroleoBrasilA PBR.A 9.62
Pfizer
PFE 36.24
PhilipMorris PM 104.78
Phillips66 PSX 100.08
PilgrimPride PPC 31.38
PinnacleFoods PF 58.28
PinnacleWest PNW 85.21
PioneerNatRscs PXD 168.82
PlainsAllAmPipe PAA 20.92
PlainsGP
PAGP 21.78
PolarisIndustries PII 126.10
Potash
POT 20.04
Praxair
PX 154.10
Priceline
PCLN 1778.79
PrincipalFin PFG 71.24
Procter&Gamble PG 91.67
s Progressive PGR 55.80
Prologis
PLD 63.01
PrudentialFin PRU 116.74
Prudential PUK 50.03
PublicServiceEnt PEG 51.01
PublicStorage PSA 203.72
PulteGroup PHM 33.77
Qiagen
QGEN 31.99
Qorvo
QRVO 67.48
Qualcomm QCOM 64.39
QuantaServices PWR 39.40
QuestDiag DGX 99.15
0.03
0.10
0.93
1.07
-6.62
0.22
1.34
0.24
0.02
-0.40
0.59
-0.01
-0.08
0.56
1.16
-0.81
0.05
0.63
1.28
-0.56
0.02
0.06
0.22
0.39
0.15
-0.76
-0.37
0.65
0.83
0.37
0.32
-0.22
0.41
-0.64
-1.03
0.73
-0.59
1.62
0.06
-0.10
1.89
0.36
0.09
4.79
-0.01
0.14
-0.37
-0.04
-0.37
0.30
0.03
-1.43
0.23
-0.09
0.41
-0.21
0.86
0.11
R S
RELX
RENX 22.86
RELX
RELX 23.47
RPM
RPM 52.16
RSP Permian RSPP 39.82
RalphLauren RL 100.92
RandgoldRscs GOLD 95.07
...
0.01
-0.29
1.84
2.30
-0.58
Stock
Net
Sym Close Chg
RaymondJames RJF 90.35
Raytheon RTN 186.84
RealtyIncome O
55.25
RedHat
RHT 123.13
RegencyCtrs REG 67.70
RegenPharm REGN 384.14
s RegionsFin RF 17.49
ReinsGrp
RGA 155.15
RelianceSteel RS 86.10
RepublicSvcs RSG 66.76
ResMed
RMD 84.98
RestaurantBrands QSR 62.01
s RioTinto
RIO 51.41
RobertHalf RHI 55.87
Rockwell
ROK 194.14
RockwellCollins COL 134.98
RogersComm B RCI 50.43
Rollins
ROL 46.87
RoperTech ROP 258.38
s RossStores ROST 80.14
RoyalBkCanada RY 80.73
RoyalBkScotland RBS 7.52
RoyalCaribbean RCL 121.75
s RoyalDutchA RDS.A 66.18
s RoyalDutchB RDS.B 67.31
Ryanair
RYAAY 105.28
SAP
SAP 112.88
S&P Global SPGI 168.78
SBA Comm SBAC 157.84
s SEI Investments SEIC 71.84
Sina
SINA 104.61
SINOPEC
SHI 57.49
SK Telecom SKM 28.02
SLGreenRealty SLG 99.12
SS&C Tech SSNC 40.40
SVB Fin
SIVB 241.67
SageTherap SAGE 155.40
Salesforce.com CRM 103.62
Sanofi
SNY 42.95
SantanderCons SC 18.52
Sasol
SSL 32.36
t Scana
SCG 37.39
Schlumberger SLB 67.86
SchwabC
SCHW 52.28
ScottsMiracleGro SMG 102.43
ScrippsNetworks SNI 85.71
Seagate
STX 41.96
SealedAir SEE 48.70
SeattleGenetics SGEN 52.77
SemicondctrMfg SMI 7.56
SempraEnergy SRE 106.91
SensataTech ST 51.39
ServiceCorp SCI 37.50
ServiceMaster SERV 51.82
ServiceNow NOW 128.97
ShawComm B SJR 22.75
s SherwinWilliams SHW 411.53
ShinhanFin SHG 46.61
Shire
SHPG 156.74
Shopify
SHOP 104.80
SignatureBank SBNY 139.17
SimonProperty SPG 164.70
SiriusXM
SIRI 5.27
SkechersUSA SKX 38.22
Skyworks SWKS 97.49
SmithAO
AOS 61.71
Smith&Nephew SNN 34.62
2.05
0.17
-0.36
1.13
-0.31
1.25
0.24
0.72
0.62
0.48
-0.59
0.75
0.84
...
1.07
-0.09
0.25
-0.28
-0.60
0.53
0.89
0.04
-1.73
1.08
0.87
-1.57
-0.28
-1.23
-0.14
0.25
1.78
1.09
0.13
0.13
0.02
5.37
-8.04
0.23
-0.08
0.24
0.45
-3.93
2.58
0.47
-0.42
1.86
0.43
0.19
0.40
-0.03
-5.02
-1.16
-0.13
0.11
-0.03
0.20
-2.81
-0.07
3.54
-0.44
2.06
0.72
0.01
0.64
0.06
0.23
-0.11
Net
Sym Close Chg
Stock
Smucker
SJM 123.91
Snap
SNAP 15.37
SnapOn
SNA 175.55
SOQUIMICH SQM 58.99
Sony
SNE 45.41
Southern
SO 49.49
s SoCopper SCCO 46.46
s SouthwestAir LUV 66.03
SpectraEnerPtrs SEP 40.83
SpectrumBrands SPB 114.63
s SpiritAeroSys SPR 86.37
Splunk
SPLK 83.91
Sprint
S
5.62
Square
SQ 35.87
StanleyBlackDck SWK 169.06
Starbucks SBUX 57.58
StateStreet STT 98.31
s Statoil
STO 21.05
s SteelDynamics STLD 43.46
Stericycle SRCL 68.83
Steris
STE 88.25
STMicroelec STM 21.82
Stryker
SYK 154.10
SumitomoMits SMFG 8.74
SunComms SUI 91.10
SunLifeFinancial SLF 40.87
SuncorEnergy SU 34.96
SunTrustBanks STI 65.55
Symantec SYMC 28.48
SynchronyFin SYF 38.60
Syngenta SYT 92.68
Synopsys SNPS 86.48
Sysco
SYY 60.59
0.49
-0.13
0.61
-0.54
0.38
-0.45
0.33
-0.06
0.38
-0.62
0.63
0.29
0.04
0.21
0.05
-0.15
1.23
0.58
0.15
0.07
-1.04
-0.02
-0.68
-0.03
-0.53
0.33
0.27
0.10
0.32
0.64
0.01
-0.62
-0.19
T U V
TAL Education TAL 29.29
TD Ameritrade AMTD 52.03
TE Connectivity TEL 95.54
Telus
TU 37.34
Ternium
TX 31.74
s TIM Part
TSU 19.20
TJX
TJX 76.30
T-MobileUS TMUS 63.52
TRowePrice TROW 104.60
TaiwanSemi TSM 39.23
TakeTwoSoftware TTWO 110.46
Tapestry
TPR 44.27
TargaResources TRGP 46.25
Target
TGT 65.22
TataMotors TTM 32.83
TechnipFMC FTI 30.80
TeckRscsB TECK 25.22
TelecomArgentina TEO 38.91
TelecomItalia TI
8.74
TelecomItalia A TI.A 7.27
TeledyneTech TDY 181.31
Teleflex
TFX 249.92
TelefonicaBras VIV 15.09
Telefonica TEF 9.76
TelekmIndonesia TLK 31.04
Tenaris
TS 31.61
Teradyne
TER 42.98
Tesla
TSLA 331.66
TevaPharm TEVA 18.50
s TexasInstruments TXN 104.07
s Textron
TXT 57.18
0.06
0.55
-0.69
0.25
-0.03
0.14
0.50
0.62
0.84
-0.21
1.71
0.99
0.71
0.74
0.10
0.94
0.49
-0.79
0.16
0.19
-0.47
-5.85
-0.25
-0.06
0.41
0.43
-0.02
2.68
1.05
-0.73
0.18
Net
Sym Close Chg
Stock
ThermoFisherSci TMO 191.13
ThomsonReuters TRI 43.39
ThorIndustries THO 152.71
3M
MMM 234.78
s Tiffany
TIF 102.46
TimeWarner TWX 92.95
Toll Bros
TOL 47.47
s Torchmark TMK 90.51
Toro
TTC 65.37
TorontoDomBk TD 57.20
Total
TOT 55.55
TotalSystem TSS 78.56
s ToyotaMotor TM 128.28
TractorSupply TSCO 74.39
TransCanada TRP 48.54
TransDigm TDG 272.86
TransUnion TRU 55.21
Travelers
TRV 134.44
Trimble
TRMB 40.48
TurkcellIletism TKC 9.89
TurquoiseHill TRQ 3.30
21stCenturyFoxA FOXA 35.11
21stCenturyFoxB FOX 34.53
s Twitter
TWTR 25.05
TylerTech TYL 178.33
TysonFoods TSN 81.16
UBS Group UBS 18.40
UDR
UDR 37.68
UGI
UGI 46.78
US Foods USFD 30.92
UltaBeauty ULTA 228.57
UltSoftware ULTI 218.31
UltraparPart UGP 22.38
UnderArmour A UAA 15.51
UnderArmour C UA 13.95
Unilever
UN 56.29
Unilever
UL 55.15
UnionPacific UNP 133.73
UnitedContinental UAL 67.28
UnitedMicro UMC 2.42
UPS B
UPS 118.58
s UnitedRentals URI 170.47
US Bancorp USB 54.53
US Steel
X
35.67
UnitedTech UTX 127.31
UnitedTherap UTHR 134.94
UnitedHealth UNH 221.69
UnivDisplay OLED 176.90
UniversalHealthB UHS 114.77
UnumGroup UNM 54.83
VEON
VEON 3.77
VEREIT
VER 7.76
VF
VFC 74.23
Visa
V
112.41
VailResorts MTN215.63
s Vale
VALE 12.05
ValeantPharm VRX 21.67
s ValeroEnergy VLO 90.72
Vantiv
VNTV 74.13
VarianMed VAR 110.71
Vedanta
VEDL 20.08
VeevaSystems VEEV 56.21
Ventas
VTR 59.84
VeriSign
VRSN 114.19
VeriskAnalytics VRSK 95.58
Verizon
VZ 53.01
VertxPharm VRTX 148.82
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Net
Sym Close Chg
no
Stock
Net
Sym Close Chg
n-
Thursday, December 21, 2017
Stock
NA
1.9
30.9
33.5
27.0
25.5
28.4
26.3
21.4
19.5
12.4
8.2
10.2
19.6
+0.67 12.8
Net YTD
NAV Chg % Ret
13.72 +0.01
46.08 +0.43
204.72 +1.84
DoubleLine Funds
NA
...
TotRetBdI
Edgewood Growth Instituti
NA
...
EdgewoodGrInst
Federated Instl
StraValDivIS
6.15 +0.03
Fidelity
500IdxInst
93.80 +0.19
500IdxInstPrem 93.80 +0.19
500IdxPrem 93.80 +0.19
ExtMktIdxPrem r 62.17 +0.25
IntlIdxPrem r 42.94 +0.19
SAIUSLgCpIndxFd 14.45 +0.03
76.63 +0.18
TMktIdxF r
TMktIdxPrem 76.63 +0.18
USBdIdxInstPrem 11.54 +0.01
Fidelity Advisor I
NwInsghtI
32.09 +0.08
Fidelity Freedom
FF2020
17.00 +0.04
14.74 +0.04
FF2025
4.1
23.3
19.0
NA
NA
14.7
22.2
22.3
22.2
18.4
24.7
22.2
21.6
21.6
3.0
28.6
15.2
16.4
Fund
Net YTD
NAV Chg % Ret Fund
FF2030
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
18.54
17.01
14.74
18.55
15.62
10.99
New Highs and Lows | WSJ.com/newhighs
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.
Thursday, December 21, 2017
52-Wk %
Sym Hi/Lo Chg Stock
Stock
Highs
AAR
AIR
ABB
ABB
AcceleronPharma XLRN
Accenture
ACN
Acushnet
GOLF
AirLease
AL
Allstate
ALL
AllyFinancial
ALLY
AlonUSAPartners ALDW
AmerEagle
AEO
AmericanFin
AFG
ApellisPharm APLS
ApolloGlbMgmt APO
AquaAmerica WTR
ArcelorMittal MT
ArchCoal
ARCH
ArmstrongWorld AWI
AshfordHospPfdI AHTpI
AtHomeGroup HOME
BBVABancoFr BFR
BHPBilliton
BHP
BHPBilliton
BBL
BMC Stock
BMCH
BP Midstream BPMP
BP
BP
BankofAmWtA BAC.WS.A
BankofAmWtB BAC.WS.B
BankofAmerica BAC
BankofMontreal BMO
BestBuy
BBY
BoiseCascade BCC
BootBarn
BOOT
BoydGaming
BYD
BrightHorizons BFAM
BroadridgeFinl BR
BuildersFirstSrc BLDR
BurlingtonStrs BURL
CGI Group
GIB
CNH Indl
CNHI
CONSOL Energy CEIX
CSP
CSPI
CVR Energy
CVI
CVR Refining CVRR
CAE
CAE
CalAtlantic
CAA
CanadaGoose GOOS
CIBC
CM
CanPacRlwy
CP
CapitalOneWt COF.WS
CasaSystems CASA
Caterpillar
CAT
Cerecor
CERC
ChembioDiagn CEMI
CheniereEnergy LNG
CherryHillPfdA CHMIpA
Chevron
CVX
ChinaEastrnAir CEA
ChinaSoAirlines ZNH
CiscoSystems CSCO
CitizensFin
CFG
Clarus
CLAR
Clorox
CLX
Comerica
CMA
44.04
26.71
42.81
158.44
21.05
47.75
105.17
29.49
17.03
19.04
108.13
16.81
33.83
38.51
32.92
91.33
61.50
24.95
31.75
25.32
45.23
39.60
24.65
19.23
41.76
17.99
2.40
29.98
79.84
67.30
40.95
16.61
35.82
95.82
92.44
21.04
119.62
54.99
13.54
34.11
13.88
37.49
14.95
18.37
57.11
29.31
97.30
182.67
57.71
15.91
155.10
2.88
7.70
51.83
25.80
125.35
35.36
52.15
38.99
42.93
8.00
149.63
88.07
2.1
0.2
9.0
1.6
1.0
1.1
-0.2
0.5
3.9
2.2
1.7
16.2
3.2
1.5
2.0
2.2
1.3
0.5
1.8
0.8
2.1
2.3
0.8
3.2
1.8
1.9
6.4
1.2
0.7
0.5
-0.2
3.3
3.9
-0.5
0.5
2.5
1.3
0.6
0.6
4.2
14.1
0.4
5.3
0.6
1.8
5.2
1.8
1.1
1.5
6.2
1.4
8.0
0.7
4.6
0.2
3.3
1.8
0.3
-0.5
1.6
1.9
0.3
1.3
52-Wk %
Sym Hi/Lo Chg Stock
ComericaWt
CMA.WS
ComfortSystems FIX
ConchoRscs
CXO
ConocoPhillips COP
Copa
CPA
Cosan
CZZ
Covanta
CVA
Crane
CR
CreditSuisse
CS
CrystalRock
CRVP
DaVita
DVA
Deere
DE
DelekUS
DK
DeltaAir
DAL
Diageo
DEO
DiamondbkEner FANG
Domtar
UFS
Dover
DOV
Dunkin'
DNKN
DycomInds
DY
DynexCapPfdA DXpA
EMCOR
EME
EPR PropPfdG EPRpG
Ebix
EBIX
Ecopetrol
EC
EducDev
EDUC
Embraer
ERJ
EmersonElec EMR
EmpireResorts NYNY
EnantaPharma ENTA
EnPro
NPO
EntegraFin
ENFC
EnviroStar
EVI
Etsy
ETSY
EvercoreA
EVR
ExpressScripts ESRX
FNBBancorp
FNBG
FedAgriMtg C AGM
FedRealtyInvPfdC FRTpC
FedEx
FDX
FiatChrysler
FCAU
FortressTransport FTAI
FortBrandsHome FBHS
FreeportMcM FCX
Freshpet
FRPT
GDSHoldings GDS
GardnerDenver GDI
GasLog
GLOG
GigCapital
GIG.U
GIIIApparel
GIII
GolarLNG PfdA GMLPP
GolarLNG
GLNG
GoldmanSachs GS
GrayTelevision GTN
GreeneCnty
GCBC
H&E Equipment HEES
HSN
HSNI
Hill-Rom
HRC
Hilton
HLT
HoeghLNG PfdA HMLPpA
HollyFrontier
HFC
HomeDepot
HD
Hovnanian
HOV
Hubbell
HUBB
HudsonGlobal HSON
Infosys
INFY
58.78
44.80
151.02
56.07
138.72
10.00
17.30
90.58
18.09
1.24
72.19
156.30
34.83
56.84
143.75
123.55
50.05
101.17
65.54
115.38
26.00
84.11
25.05
81.85
13.63
18.21
26.25
69.80
28.90
58.12
94.40
30.70
43.10
21.86
93.00
74.86
38.94
79.19
25.17
255.11
18.47
19.88
69.76
18.35
20.50
23.76
34.56
21.70
10.01
37.39
25.71
29.86
262.09
17.50
35.70
40.24
44.15
85.74
79.95
26.28
50.55
188.84
2.99
135.50
2.04
16.23
0.9
1.1
2.1
3.1
-1.4
0.7
2.1
1.3
2.3
9.0
0.2
1.0
3.8
-0.3
0.3
5.0
-0.1
1.4
2.4
3.3
0.6
0.8
0.7
1.3
1.0
0.6
22.2
0.9
-1.0
1.4
0.7
0.3
15.9
5.0
1.8
0.6
...
1.5
0.1
-0.4
0.3
3.2
2.1
2.9
2.6
0.2
1.2
-0.5
0.2
3.1
0.2
0.9
2.3
-0.9
2.3
0.8
0.7
-0.7
1.3
0.7
1.4
0.4
12.0
0.4
5.8
0.6
52-Wk %
Sym Hi/Lo Chg
InterContinentl IHG
iRadimed
IRMD
JaggedPeakEner JAG
JamesHardie JHX
JasonIndustries JASN
JetPay
JTPY
KAR Auction KAR
KLX
KLXI
KenonHoldings KEN
KeyCorp
KEY
KimcoRealtyPfdM KIMpM
LGI Homes
LGIH
LPL Financial LPLA
Leaf
LFGR
Lear
LEA
LeggMason
LM
Leidos
LDOS
Lennar A
LEN
LibertyQVC A QVCA
LongIslandIcedTea LTEA
Lowe's
LOW
lululemon
LULU
Luxfer
LXFR
MER Telemgmt MTSL
MVC CapNts22 MVCD
MV Oil
MVO
MagnaIntl
MGA
MarathonPetrol MPC
Marriott
MAR
Masco
MAS
MasTec
MTZ
MatadorResources MTDR
MedallionFinNts MFINL
MelcoResorts MLCO
MeridianBancorp EBSB
Methanex
MEOH
MichaelKors
KORS
MillerHerman MLHR
MiXTelematics MIXT
Moelis
MC
NICE
NICE
NMI Holdings NMIH
NQ Mobile
NQ
NeenahPaper NP
NetElement
NETE
Netease
NTES
Newmark
NMRK
NexaResources NEXA
NexstarMedia NXST
NorfolkSouthern NSC
NorthernTrust NTRS
NovoNordisk
NVO
Nxt-ID Wt
NXTDW
Nxt-ID
NXTD
OhioValleyBanc OVBC
Ollie'sBargain OLLI
OmegaFlex
OFLX
1-800-FLOWERS FLWS
Ooma
OOMA
OrthofixIntl
OFIX
OwensCorning OC
OxfordIndustries OXM
PBF Energy
PBF
PSBusParksPfdY PSBpY
PackagingCpAm PKG
ParkerHannifin PH
-1.16
-0.18
-0.98
-2.14
2.41
2.37
0.08
0.09
0.61
0.70
0.41
-1.43
0.65
1.42
0.65
1.44
-0.70
-0.82
-0.46
0.18
0.03
0.84
0.67
-0.15
-0.78
-0.17
0.19
-0.35
-0.12
0.02
2.57
-1.05
0.24
0.34
0.23
-0.18
-0.27
-0.95
1.38
-0.05
0.25
2.17
0.27
1.30
0.31
-0.92
-0.69
-3.95
1.99
0.03
-0.05
...
-0.17
0.29
-1.36
0.18
0.78
0.56
-0.78
-0.08
0.23
-0.89
-0.85
-1.82
-0.74
0.24
3.70
Net
Sym Close Chg
Stock
Viacom B VIAB 31.76
Viacom A VIA 35.45
Vipshop
VIPS 12.08
VistraEnergy VST 18.16
VMware
VMW 127.17
s Vodafone VOD 31.78
VornadoRealty VNO 77.13
s VoyaFinancial VOYA 52.07
VulcanMatls VMC 122.85
0.57
0.55
0.06
...
-1.45
0.38
0.31
5.24
3.87
W X Y Z
WABCO
WBC 143.85 0.34
WEC Energy WEC 65.62 -0.32
s WEX
WEX 139.90 1.18
W.P.Carey WPC 68.66 -0.32
WPP
WPP 90.32 -0.09
Wabtec
WAB 79.86 -0.53
Wal-Mart WMT 98.06 -0.69
WalgreensBoots WBA 73.25 0.53
WasteConnections WCN 70.96 0.42
WasteMgt WM 85.79
...
Waters
WAT 194.52 -1.54
Watsco
WSO 168.77 0.09
Wayfair
W 78.89 -2.69
Weibo
WB 107.72 2.19
WellCareHealth WCG 199.73 -0.98
s WellsFargo WFC 61.61 1.47
t Welltower HCN 63.48 -0.18
WestPharmSvcs WST 99.75 -0.55
WestarEnergy WR 52.28 -0.86
WestAllianceBcp WAL 58.39 0.55
WesternDigital WDC 80.83 -1.94
WesternGasEquity WGP 36.80 0.25
WesternGasPtrs WES 46.81 0.05
WesternUnion WU 19.26 -0.21
s WestlakeChem WLK 104.55 1.02
WestpacBanking WBK 24.09 0.11
WestRock WRK 63.84 0.11
Weyerhaeuser WY 35.21 -0.21
WheatonPrecMet WPM 22.01 -0.08
Whirlpool WHR 169.61 4.73
Williams
WMB 30.32 0.27
WilliamsPartners WPZ 38.66 0.16
WillisTowers WLTW 152.37 -0.75
WinsFinance WINS 187.00-173.00
Wipro
WIT 5.52 -0.05
WooriBank WF 45.19 -0.26
Workday
WDAY 102.89 0.89
Wyndham WYN 113.37 0.54
s WynnResorts WYNN 168.51 -0.44
XPO Logistics XPO 78.69 -0.46
XcelEnergy XEL 48.39 -0.10
Xerox
XRX 29.71 -0.28
Xilinx
XLNX 68.37 -0.62
Xylem
XYL 67.75 -0.07
YPF
YPF 22.04 0.46
YY
YY 115.64 2.71
Yandex
YNDX 31.44 -0.57
YumBrands YUM 82.50 0.37
YumChina YUMC 41.09 0.18
ZTO Express ZTO 15.88 0.23
ZayoGroup ZAYO 36.05 0.09
Zillow C
Z
42.37 -0.70
Zillow A
ZG 42.15 -0.69
ZimmerBiomet ZBH 119.95 -1.23
ZionsBancorp ZION 51.46 0.73
Zoetis
ZTS 72.28 -0.43
ly
.
How to Read the Stock Tables
63.11 1.8
15.14 11.2
15.76 2.5
17.50 2.7
2.45 -1.7
4.89 12.7
51.52 1.2
63.68 1.3
21.20 0.6
20.52 1.7
24.84 0.7
75.31 -0.8
57.37 1.9
9.40 3.3
181.46 0.1
42.41 -0.1
65.70 0.1
64.01 1.9
26.79 0.6
9.49 183.2
91.03 0.6
78.00 1.1
15.26 2.4
4.49 6.4
25.74 0.4
8.08 9.2
58.07 0.6
66.79 1.0
135.18 0.1
44.44 1.3
51.20 3.7
30.04 4.9
25.98 2.2
29.05 0.4
21.00 0.5
59.75 -0.5
64.25 0.5
38.85 5.6
12.73 2.6
49.23 2.6
90.25 -0.5
18.05 -0.3
4.68 1.5
93.00 1.3
33.51 -3.3
377.64 2.5
16.10 3.3
18.68 4.0
80.05 -0.4
145.54 -0.4
100.50 1.6
53.62 1.2
3.42 38.0
8.59 38.4
43.30 4.2
53.50 0.2
76.63 2.2
11.65 -1.3
12.50 5.6
56.53 0.1
91.88 1.2
74.23 1.5
34.91 2.1
25.02 0.2
121.11 0.5
200.04 0.3
52-Wk %
Sym Hi/Lo Chg Stock
PatrickIndustries PATK
PeabodyEnergy BTU
PennNational PENN
PeoplesFinSvcs PFIS
PerformanceFood PFGC
PiperJaffray
PJC
PlanetFitness PLNT
Presidio
PSDO
Progressive
PGR
ProvidentBancorp PVBC
Quanterix
QTRX
Quidel
QDEL
RBB Bancorp RBB
REV
REVG
RPC
RES
RayonierAdvMatls RYAM
RedLionHotels RLH
RedRockResorts RRR
RegionsFin
RF
RexfordIndPfdB REXRpB
RexnordPfdA RXNpA
Rexnord
RXN
RioTinto
RIO
RossStores
ROST
RoyalDutchA RDS.A
RoyalDutchB RDS.B
SEI Investments SEIC
SabineRoyalty SBR
SchnitzerSteel SCHN
SelectEnergySvcs WTTR
SherwinWilliams SHW
Snyders-Lance LNCE
SolarisOilfield SOI
SoCopper
SCCO
SouthwestAir LUV
SparkNetworks LOV
SpartanMotors SPAR
SpiritAeroSys SPR
StanleyBlackDeckUn SWP
Statoil
STO
SteelDynamics STLD
SterlingBncpPfdA STLpA
StifelFinancial SF
TIM Part
TSU
TexasInstruments TXN
TexasRoadhouse TXRH
Textron
TXT
Tiffany
TIF
TopBuild
BLD
Torchmark
TMK
ToyotaMotor TM
TransportadGas TGS
Tucows
TCX
Twitter
TWTR
UnitedBancorpOH UBCP
UnitedRentals URI
UrbanOutfitters URBN
UsanaHealth USNA
Vale
VALE
ValeroEnergy VLO
VarexImaging VREX
Verso
VRS
VikingTheraWt VKTXW
Vodafone
VOD
VoyaFinancial VOYA
WEX
WEX
WSIIndustries WSCI
WellsFargo Wt WFC.WS
WellsFargo
WFC
WestlakeChem WLK
WildHorseResource WRD
WillScotWt
WSCWW
WisdomTreeInvs WETF
WolverineWwide WWW
WynnResorts WYNN
69.05
38.05
31.42
51.56
32.45
83.80
34.72
18.89
57.18
27.37
20.36
46.14
27.44
31.82
27.07
20.25
9.85
34.53
17.58
25.20
59.32
26.51
51.46
80.62
66.21
67.41
72.34
45.65
33.81
17.98
415.75
50.43
20.30
46.78
66.99
12.84
18.10
86.63
124.00
21.10
43.70
26.45
61.47
19.61
105.33
55.44
57.71
103.07
75.40
90.98
128.44
24.00
68.75
25.56
13.72
170.74
35.30
75.30
12.08
91.12
40.58
16.00
2.77
31.93
52.48
140.36
4.65
28.59
62.12
104.96
18.34
1.40
12.64
31.54
170.00
1.7
2.3
1.4
1.6
1.4
3.0
1.6
0.7
-0.7
6.4
1.8
-1.9
0.8
2.1
2.4
-0.6
2.6
2.9
1.4
...
-0.6
0.8
1.7
0.7
1.7
1.3
0.3
-1.3
1.2
3.6
-0.7
0.2
2.9
0.7
-0.1
-0.1
2.9
0.7
...
2.8
0.3
0.4
1.2
0.7
-0.7
2.8
0.3
2.4
2.3
0.1
0.5
-0.7
-1.5
-0.6
-2.9
1.3
0.3
-0.7
1.5
0.6
2.1
4.8
-7.3
1.2
11.2
0.9
...
5.5
2.4
1.0
5.5
1.4
4.0
0.6
-0.3
52-Wk %
Sym Hi/Lo Chg
Lows
AXIS Capital
AXS
AcastiPharma ACST
AdvaxisWt
ADXSW
Alexanders
ALX
AmCampus
ACC
AmShrHosp
AMS
BioPharmX
BPMX
BlackRockCapInvt BKCC
BluerockResREIT BRG
CBL AssocPfdD CBLpD
CPI Card
PMTS
CamberEnergy CEI
Celgene Rt
CELGZ
ChinaJoJoDrug CJJD
Cohbar
CWBR
ColonyNorthStar CLNS
ComstockMining LODE
Volaris
VLRS
CorpOfficeProp OFC
Curis
CRIS
DenaliTherap DNLI
DiffusionPharm DFFN
EPR Prop
EPR
EdisonInt
EIX
EducationRealty EDR
FrontierCommPfA FTRPR
Frontline
FRO
Funko
FNKO
GNC Holdings GNC
GlobalNetLease GNL
IMPAC Mortgage IMH
IdealPower
IPWR
ImmunePharma IMNP
KayneAnAcqn KAAC
LTC Properties LTC
Mechel
MTL
MidatechPharma MTP
MosaicAcqnA MOSC
NeuroMetrixWt NUROW
NewSeniorInvt SNR
NordicAmerTankers NAT
NorwegCruise NCLH
OGE Energy
OGE
PG&E
PCG
PPL
PPL
PacGE pfC
PCGpC
PacGE pfA
PCGpA
PacGE pfB
PCGpB
PacGE pfE
PCGpE
PacGE pfD
PCGpD
PacGE pfG
PCGpG
PacGE pfH
PCGpH
PacGE pfI
PCGpI
ParkerVision
PRKR
PAVmedWt
PAVMW
PetroQuestEner PQ
QwestNts2053 CTY
RYBEducation RYB
RevolutionLight RVLT
SCE Tr VI 5% Pfd L SCEpL
Scana
SCG
scPharm
SCPH
SoJerseyInd
SJI
StellarBiotech SBOT
TESARO
TSRO
TOP Ships
TOPS
TPGPace
TPGH.U
US Geothermal HTM
UnicoAmerican UNAM
US NatGas
UNG
US12mthNtlGas UNL
Welltower
HCN
WillametteVallPfA WVVIP
YingliGreenEner YGE
ZaiLab
ZLAB
49.42 ...
0.84 -16.2
0.62 -24.5
389.81 -0.4
40.07 -1.1
2.45 10.0
0.10 6.4
6.09 -1.3
9.67 2.7
21.93 -0.7
2.90 6.7
0.11 -6.1
0.54 4.5
1.30 -8.3
5.10 -4.8
11.62 1.5
0.21 -4.7
8.28 -4.0
28.95 -1.4
0.75 0.2
16.39 -7.1
1.06 -13.8
63.10 -1.0
62.67 -7.3
34.56 -1.1
10.57 -4.3
4.47 1.5
5.97 -5.7
3.61 -23.1
20.09 -0.8
9.98 0.3
1.15 -6.3
0.50 0.4
9.64 0.3
43.40 -1.0
4.00 -6.8
0.92 -7.2
9.65 -0.5
0.02 11.1
7.45 -1.0
2.45 2.4
54.01 -1.2
32.65 -0.9
41.61 -12.9
31.11 -1.3
23.75 -8.7
21.19 -6.5
23.00 -8.3
20.75 -11.2
21.54 -8.8
22.00 -11.2
20.36 -9.0
20.70 -11.2
1.03 4.7
0.35 -20.0
1.50 4.4
18.66 -0.9
15.50 -1.6
3.35 -5.3
24.15 -2.1
37.37 -9.5
11.80 -2.6
30.76 -1.0
0.80 -2.3
76.13 3.5
0.24 -4.8
10.14 ...
3.11 -0.6
8.85 -2.4
5.10 -1.7
8.54 -1.4
63.26 -0.3
4.17 -4.8
1.70 ...
21.50 -4.5
Dividend Changes
Dividend announcements from December 21.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
8Point3 Energy Partners
Andersons
Independence Holding
Limoneira
Oxford Lane Capital
Net YTD
NAV Chg % Ret Fund
+0.06 19.4 FrankTemp/Temp A
12.02 -0.05
+0.05 NS GlBond A p
27.24 +0.19
+0.04 NS Growth A p
+0.06 NS FrankTemp/Temp Adv
+0.05 NS GlBondAdv p 11.97 -0.05
+0.04 NS Harbor Funds
69.89 +0.21
CapApInst
Fidelity Invest
67.55 +0.48
23.74 +0.05 16.5 IntlInst r
Balanc
BluCh
88.40 +0.09 37.1 Harding Loevner
NA
...
123.09 +0.23 32.9 IntlEq
Contra
123.01 +0.22 33.1 Invesco Funds A
ContraK
11.00 +0.07
10.33 +0.01 11.5 EqIncA
CpInc r
39.73 +0.16 25.7 John Hancock Class 1
DivIntl
NA
...
GroCo
188.16 +0.26 37.6 LSBalncd
NA
...
188.14 +0.26 37.7 LSGwth
GrowCoK
7.89
... 3.3 John Hancock Instl
InvGB
23.33 +0.08
11.22 +0.01 3.8 DispValMCI
InvGrBd
54.24 +0.20 20.0 JPMorgan Funds
LowP r
MdCpVal
L
40.22 +0.07
LowPriStkK r 54.18 +0.19 20.2
MagIn
105.07 +0.30 27.1 JPMorgan R Class
11.56 +0.01
111.10 +0.12 40.2 CoreBond
OTC
23.44 +0.06 18.8 Lazard Instl
Puritn
NA
...
EmgMktEq
SrsEmrgMkt 21.03 +0.07 37.9
SrsGroCoRetail 16.73 +0.03 38.3 Loomis Sayles Fds
13.72
...
LSBondI
SrsIntlGrw
16.01 +0.07 29.1
10.67 +0.06 20.2 Lord Abbett A
SrsIntlVal
...
10.62 +0.01 3.7 ShtDurIncmA p 4.25
TotalBond
Lord Abbett F
First Eagle Funds
4.25
...
ShtDurIncm
GlbA
58.81 +0.17 13.0
Metropolitan West
FPA Funds
10.62 +0.01
34.73 +0.11 10.5 TotRetBd
FPACres
10.62 +0.01
TotRetBdI
FrankTemp/Frank Adv
9.99 +0.01
TRBdPlan
IncomeAdv
2.36 +0.01 8.6
MFS Funds Class I
FrankTemp/Franklin A
ValueI
40.90 -1.18
7.43 +0.01 5.2
CA TF A p
MFS Funds Instl
2.38 +0.01 8.4
IncomeA p
25.30 +0.14
IntlEq
61.20 +0.14 20.4
RisDv A p
Mutual Series
FrankTemp/Franklin C
33.05 +0.22
GlbDiscA
Income C t
2.41 +0.01 8.2
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Foreign
CAFD
ANDE
IHC
LMNR
OXLC
7.5 .2802 /.2721 Q
2.1 .165 /.16 Q
0.7 .10 /.06 SA
1.1 .0625 /.055 Q
16.4 .135 /.13333 M
Net YTD
NAV Chg % Ret Fund
Oakmark Funds Invest
3.5 EqtyInc r
32.26 +0.09
17.7 Oakmark
84.80 +0.49
OakmrkInt
28.40 +0.24
3.7 Old Westbury Fds
LrgCpStr
14.42 +0.06
37.5 Oppenheimer Y
23.0 DevMktY
NA
...
43.42 +0.22
IntGrowY
NA Parnassus Fds
43.09 -0.09
ParnEqFd
11.3 PIMCO Fds Instl
NA
...
AllAsset
NA TotRt
10.22 +0.01
NA PIMCO Funds A
NA
...
IncomeFd
15.7 PIMCO Funds D
NA
...
IncomeFd
13.5 PIMCO Funds Instl
NA
...
IncomeFd
3.4 PIMCO Funds P
NA
...
IncomeP
NA Price Funds
96.83 +0.02
BlChip
7.2 CapApp
28.27 -0.04
33.44 +0.12
EqInc
2.2 EqIndex
71.98 +0.14
63.05 +0.05
Growth
2.5 HelSci
70.24 +0.02
37.12
...
InstlCapG
2.6 IntlStk
18.52 +0.08
3.0 IntlValEq
15.02 +0.05
3.0 MCapGro
87.31 -0.05
30.34 +0.20
MCapVal
18.1 N Horiz
52.67 +0.13
9.45
...
N Inc
27.2 OverS SF r
11.27 +0.05
22.50 -1.03
R2020
9.9
17.56 -0.62
R2025
Jan12 /Jan02
Jan23 /Jan02
Jan16 /Jan02
Jan17 /Jan02
Jan31 /Jan23
Altisource Residential
GasLog Perp. Pfd. A
5.0
8.2
.15
.54688
Q
Q
Jan12 /Dec29
Jan02 /Dec29
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Net YTD
NAV Chg % Ret Fund
25.88 -0.94
R2030
18.95 -0.68
14.7 R2035
27.21 -1.02
21.8 R2040
37.43 +0.08
29.0 Value
PRIMECAP Odyssey Fds
19.1 AggGrowth r 44.58 -0.08
37.52 -0.06
Growth r
NA Principal Investors
NA
...
26.3 DivIntlInst
Prudential Cl Z & I
14.49
+0.02
TRBdZ
17.2
Schwab Funds
41.34 +0.08
NA S&P Sel
TIAA/CREF Funds
4.6
EqIdxInst
19.72 +0.04
IntlEqIdxInst 20.08 +0.09
NA
Tweedy Browne Fds
GblValue
28.78 +0.08
NA
VANGUARD ADMIRAL
248.93 +0.49
500Adml
NA
34.91 +0.06
BalAdml
CAITAdml
11.71 +0.01
NA CapOpAdml r 154.88 -0.42
37.50 +0.28
EMAdmr
37.3 EqIncAdml
77.88 +0.12
15.3 ExplrAdml
88.48 +0.17
16.5 ExtndAdml
84.94 +0.34
22.0 GNMAAdml
10.44
...
34.5 GrwthAdml
72.69 +0.04
27.7 HlthCareAdml r 86.82 +0.30
38.6 HYCorAdml r
5.91
...
27.2 InfProAd
25.77 +0.05
20.0 IntlGrAdml
95.25 +0.71
25.3 ITBondAdml 11.32
...
11.4 ITIGradeAdml 9.71
...
31.7 LTGradeAdml 10.49 +0.04
3.5 MidCpAdml 191.40 +0.45
91.13 +0.06
26.6 MorgAdml
11.37 +0.01
15.5 MuHYAdml
14.05 +0.01
17.5 MuIntAdml
RESI
GLOGpA
19.3
20.7
21.9
19.3
34.4
33.0
NA
5.9
22.2
21.5
24.8
14.9
22.2
13.9
4.2
30.3
29.0
18.4
23.2
18.4
1.7
28.4
19.9
6.8
2.1
42.7
3.3
3.7
10.2
19.2
30.6
7.2
4.0
Net YTD
NAV Chg % Ret Fund
11.58
MuLTAdml
10.87
MuLtdAdml
MuShtAdml 15.70
PrmcpAdml r 134.57
REITAdml r 115.16
SmCapAdml 70.86
STBondAdml 10.37
STIGradeAdml 10.62
TotBdAdml
10.71
TotIntBdIdxAdm 21.96
TotIntlAdmIdx r 30.20
66.94
TotStAdml
14.29
TxMIn r
ValAdml
41.52
WdsrllAdml
67.29
65.00
WellsIAdml
75.94
WelltnAdml
79.21
WndsrAdml
+0.01
...
-0.01
-0.13
-0.41
+0.26
...
-0.01
+0.01
-0.01
+0.14
+0.15
+0.05
+0.13
+0.31
+0.14
+0.27
+0.13
5.6
1.9
1.0
30.5
2.8
16.4
1.0
2.0
3.0
2.3
26.2
21.6
25.3
17.4
17.2
9.8
14.8
19.5
VANGUARD FDS
DivdGro
26.54
205.86
HlthCare r
INSTTRF2020 22.92
INSTTRF2025 23.25
INSTTRF2030 23.51
INSTTRF2035 23.77
INSTTRF2040 24.02
INSTTRF2045 24.20
39.67
IntlVal
20.11
LifeCon
LifeGro
33.99
27.43
LifeMod
27.07
PrmcpCor
31.30
SelValu r
27.78
STAR
STIGrade
10.62
16.13
TgtRe2015
32.14
TgtRe2020
18.90
TgtRe2025
34.22
TgtRe2030
+0.03
+0.70
+0.05
+0.05
+0.06
+0.07
+0.07
+0.07
+0.21
+0.03
+0.09
+0.05
-0.02
+0.11
+0.07
-0.01
+0.03
+0.06
+0.04
+0.08
19.3
19.8
13.8
15.6
17.3
18.8
20.5
21.2
27.3
10.6
18.9
14.7
27.0
19.6
18.1
1.9
11.2
13.7
15.6
17.2
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg % Ret
21.07 +0.05
36.38 +0.10
22.88 +0.06
36.81 +0.11
13.69 +0.01
10.98 -0.01
26.83 +0.05
43.97 +0.16
37.93 +0.18
VANGUARD INDEX FDS
248.87 +0.49
500
ExtndIstPl
209.62 +0.84
57.12 +0.23
SmValAdml
10.67 +0.01
TotBd2
18.05 +0.08
TotIntl
66.92 +0.15
TotSt
VANGUARD INSTL FDS
34.92 +0.06
BalInst
DevMktsIndInst 14.31 +0.05
DevMktsInxInst 22.37 +0.09
ExtndInst
84.94 +0.34
72.70 +0.05
GrwthInst
InPrSeIn
10.50 +0.02
245.60 +0.49
InstIdx
245.62 +0.49
InstPlus
60.35 +0.14
InstTStPlus
42.28 +0.10
MidCpInst
MidCpIstPl
208.53 +0.50
70.86 +0.27
SmCapInst
STIGradeInst 10.62 -0.01
10.71 +0.01
TotBdInst
10.67 +0.01
TotBdInst2
10.71 +0.01
TotBdInstPl
TotIntBdIdxInst 32.95 -0.01
TotIntlInstIdx r 120.76 +0.56
TotItlInstPlId r 120.78 +0.56
TotStInst
66.96 +0.16
41.52 +0.14
ValueInst
Western Asset
NA
...
CorePlusBdI
18.8
20.4
21.1
21.1
8.1
2.2
9.7
14.7
17.1
22.1
18.4
12.0
3.0
26.1
21.5
13.9
25.4
25.4
18.4
28.4
2.1
22.2
22.3
21.6
19.2
19.2
16.4
2.0
3.1
3.0
3.1
2.3
26.2
26.2
21.6
17.5
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.
B10 | Friday, December 22, 2017
* *****
THE WALL STREET JOURNAL.
BANKING & FINANCE
HNA Faces Calls for a U.S. Probe MetLife to Hire Firm
To Locate Workers
In Pension Blunder
BY CEZARY PODKUL
AND KATE O’KEEFFE
BY LESLIE SCISM
AND HEATHER GILLERS
Rep. Robert Pittenger (R., N.C.) has said the U.S. could consider suspending deals by China’s HNA.
New Zealand Blocks
Deal by China Firm
politicians or government officials. HNA denies that, and
named all of its beneficial
owners in July, identifying a
New York charitable foundation as its largest shareholder.
The New Zealand regulator’s decision is “inconsistent
with the views of other regulators around the world that
have recently issued approvals
to HNA and other Chinese investors,” said HNA, which could
appeal to New Zealand’s High
Court.
A spokeswoman for the
New Zealand regulator said
that nationality wasn’t a consideration in the decision to
reject the proposed acquisition.
—Mike Cherney
Two Democratic lawmakers—Rep. Rosa DeLauro (D.,
Conn.), who is co-sponsoring
the bill, and Rep. Brad Sherman (D., Calif.)—also urged
stepped-up scrutiny of HNA in
statements to the Journal.
“The claims raised by Ness
are further proof that Congress needs to enact longoverdue CFIUS reform, which
includes increasing the resources available to fully investigate transactions,” Ms.
DeLauro said.
Michael Wessel, a member
of the U.S.-China Economic
and Security Review Commission, which provides recommendations to Congress, said
to the Journal that HNA’s
“pending and future deals
should be halted…and previous
deals should be reassessed
with any new facts.”
The complications with the
HNA and Ness deal started in
April. That was when Pactera
Technology International—the
HNA subsidiary that was buying some of Ness’s assets—notified CFIUS about the deal,
according to Ness. The notice
prompted multiple rounds of
follow-up questions from the
committee because HNA didn’t
fully disclose its ownership
and ties to the Chinese government, Ness alleged.
In late August, Pactera disclosed “for the first time” that
Chen Feng, HNA’s co-chairman,
“held a current government
position in China,” according
to the lawsuit.
The HNA spokesman said:
“Chen Feng does not hold a
government position.”
co Fo
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SYDNEY—A New Zealand
regulator blocked Chinese conglomerate HNA Group Co.’s
planned acquisition of a finance company, becoming the
latest foreign government authority to flag concerns about
the closely held company’s
murky ownership structure.
New Zealand’s Overseas Investment Office said Thursday
it couldn’t determine which
foreign person owned and controlled HNA’s local subsidiary,
and therefore couldn’t sign off
on the deal. HNA in January
agreed to buy UDC Finance,
which finances vehicles, machinery and other equipment,
from Australia & New Zealand Banking Group Ltd. for
660 million New Zealand dollars (US$462.8 million).
In recent months, HNA has
faced scrutiny from regulators
in the U.S. and some countries
where it has done deals. Liquidity pressures have mounted as
investors have become concerned about the group’s ability
to pay down tens of billions of
dollars in debt. HNA now has
plans to divest itself of some
assets to raise cash.
The company’s heightened
global profile has led to questions about who controls HNA
and whether any of its shareholders have ties to Chinese
MetLife Inc. hired a law
firm to investigate how its retirement business failed to aggressively search for possibly
tens of thousands of people
owed pension benefits and is
planning to hire a specialty
firm to help locate the people,
company executives said in interviews.
The company is working to
meet an internal goal to determine by Feb. 1 how much
money it owes people, the executives said Wednesday. It is
using databases that have become more robust in recent
years to find where people live
and is trying to reach them
with certified letters. It also
will soon employ the outside
vendor, which has a specialty
in identifying addresses, they
said.
The move coincides with a
nationwide push by the Labor
Department to restore pension
benefits to beneficiaries
whose former employers have
lost track of them.
Metlife’s executives’ comments come a few days after
the New York insurer disclosed it failed to pay thousands of pensions. Those retirees generally have average
benefits of less than $150 a
month. At the time, the firm
said it believes the group represents less than 5% of about
600,000 people who receive
certain benefits from the firm.
The company also said addressing the issue “may be
material to our results of operations.”
In the interview Wednesday, executives for the big insurer said the firm wants to
be able to put a size on the
cost of fixing the problem
when it details its fourth-quarter earnings on Feb. 1. The
cost would include paying
pensions back to the date the
people were first eligible to
draw their monthly income,
the executives said.
“We are deeply disappointed we fell short of our
own high standards on this issue,” MetLife Chief Executive
Steven Kandarian said in the
company’s first interview
since its disclosure last week.
MetLife’s disclosure and
ramped-up effort stem from a
pilot project that it launched
in August 2016 partly because
the Labor Department was
stepping up pressure on private-sector pension plans to
do a better job of finding
missing participants, the exec-
with lawmakers to strengthen
CFIUS. The Treasury secretary
and the heads of the departments of defense and justice—
who also sit on the panel—
have all recently endorsed the
bill put forth by Mr. Pittenger
and Senate Majority Whip
John Cornyn (R., Texas).
If the bill passes, it could
make it easier for CFIUS to reinvestigate past foreign deals
including those of HNA. That
could eventually lead to an order for them to be unwound.
The committee already has the
authority to revisit previously
cleared deals in limited circumstances, though multiple
CFIUS lawyers the Journal
contacted couldn’t recall a
time when it had done so. A
Treasury spokesman declined
to comment.
n-
Swiss Hit JPMorgan
Over 1MDB Dealings
and Falcon Private Bank Ltd.
to pay millions of francs from
profits linked to business with
1MDB. In April, it reprimanded
UBS Group AG over its 1MBD
dealings.
The regulator said Thursday it has appointed a monitor
to review the controls of J.P.
Morgan (Switzerland) Ltd. and
that is also informed the U.S.
Office of the Comptroller of
the Currency.
“This review focuses primarily on the handling of
high-risk transactions includ-
no
ZURICH—Switzerland’s financial regulator on Thursday
said JPMorgan Chase & Co.’s
Swiss unit had “seriously
breached” anti-money-laundering regulations related to
its dealings with Malaysian
state
investment
fund
1Malaysia Development Bhd.
1MDB is the subject of investigations in the U.S., Switzerland and other countries
into whether billions of dollars
were siphoned out of the fund.
“JPMorgan failed to adequately identify the increased
money laundering risks in
some of the business relationships related to this case,” the
Swiss Financial Market Supervisory Authority said, citing
enforcement proceedings it
conducted between May 2016
and June 2017.
“In one case, it credited
hundreds of millions of U.S.
dollars from the 1MDB sovereign-wealth fund, allegedly
earmarked for the purchase of
a company, to the personal account of an individual with
close ties to a 1MDB business
partner,” the regulator said.
JPMorgan wasn’t fined and
didn’t have restrictions imposed on it. The regulator
cited the bank’s “good cooperation” during the probe.
The Swiss attorney general
opened an investigation into
the alleged misappropriation
of funds from 1MDB in August
2015 amid concerns the country’s banks may have been
used for illegal activities.
The regulator previously ordered Coutts & Co., BSI SA
The bank wasn’t
fined and didn’t have
restrictions imposed
on it by Switzerland.
ing, in particular, the monitoring of transactions between
personal and business accounts,” the Swiss regulator
said.
“The resolution announced
by Finma relates to matters
that took place many years
ago in the Swiss Private Bank,
and since that time we have
increased training, added staff
and made improvements in
monitoring and surveillance,”
JPMorgan said.
1MDB has denied any funds
were misappropriated or any
wrongdoing on its part and
has pledged to cooperate with
any lawful investigation. Multiple investigations in Malaysia into 1MDB closed without
finding wrongdoing.
‘We are deeply
disappointed
we fell short
of our own
high standards,’
said CEO Steven
Kandarian.
weren’t receiving benefits
owed to them. So far, the Philadelphia office has been able
to reunite about 4,000 people
with about $270 million in
value for past and future benefits, this official said. The nationwide
campaign
was
launched this year.
MetLife has been in the
pension business for decades.
In years past, it had used regular mail to contact future
pension recipients, beginning
about six months before their
eligibility age for drawing the
monthly checks, said Michel
Khalaf, a senior MetLife executive whose responsibilities include the pension business.
MetLife used addresses it had
on file for the people. If the
letters were returned as undeliverable, it sought some additional addresses from data
firms and sent more letters.
The company isn’t disclosing details of how many of the
people who previously hadn’t
been located were reached
through the project. It was escalated to the attention of Mr.
Khalaf in October, and he
brought it to Mr. Kandarian.
Voya to Sell
Annuities
Businesses
BY ALLISON PRANG
REUTERS
BY BRIAN BLACKSTONE
utives said.
MetLife’s pension business
isn’t regulated by the Labor
Department, but its managers
were aware of some of the additional steps that these private-sector plans were taking.
The federal effort began in
2013 at the Labor Department’s regional office in Philadelphia, where benefits advisers were fielding questions
from pensioners wondering
why they weren’t receiving
pension benefits mentioned on
their Social Security notices,
according to a Labor Department official familiar with the
program. Those notices list
pensions whose sponsors have
reported to the federal government that they have made
pension contributions on pensioners’ behalf.
By 2015, the office had
opened an investigation, sending out inquiries to the 50
largest plans in the Philadelphia region, this official said.
The plans reported that about
86,000 beneficiaries—roughly
2.6% of all participants—
ly
.
BILL CLARK/CONGRESSIONAL QUARTERLY/ZUMA PRESS
Lawmakers are calling for a
national security panel to increase its scrutiny of billions
of dollars in U.S. investments
by HNA Group Co., including
possibly revoking its approval
of earlier deals by the Chinese
conglomerate.
The requests from Capitol
Hill follow recent allegations
by a U.S. firm that HNA provided “knowingly false, inconsistent, and misleading information” about its ownership
and ties to the Chinese government during the interagency
panel’s review of a $325 million deal.
The allegations were aired
in a lawsuit filed this month by
Ness Technologies, which had
been trying to sell a New Jersey-based software engineering subsidiary to a Beijingbased unit of HNA. A
spokesman for the Chinese
firm said in an email that HNA
disputes the allegations, calling them “baseless and without merit.”
The complaint has already
drawn the attention of some
on Capitol Hill who have been
growing increasingly concerned about the lack of clarity
surrounding the Chinese conglomerate’s ownership. Regulators in New Zealand blocked
an HNA deal on Thursday for
the same reason.
“If these allegations are
true, the government should
consider using its ability to
suspend future HNA transactions or retroactively reopen
previous HNA agreements,”
Rep. Robert Pittenger (R., N.C.)
said in a statement to The Wall
Street Journal, referring to the
Ness lawsuit.
Mr. Pittenger is one of the
sponsors of bipartisan legislation to broaden the power of
the Committee on Foreign Investment in the U.S., or CFIUS.
The multiagency body, led by
the Treasury Department, reviews foreign deals by companies such as HNA and can advise the president to block
takeovers on national security
grounds.
CFIUS approved HNA’s $6
billion deal to buy Californiabased technology distributor
Ingram Micro, which closed in
December 2016, and the Chinese firm has been trying for
some time to get approval
from the panel to buy a controlling stake in SkyBridge
Capital, the investment firm
owned by former White House
adviser Anthony Scaramucci.
The HNA spokesman said
the Skybridge transaction is on
track. Mr. Scaramucci declined
to comment.
On Monday, President Donald Trump pledged to work
A shipyard in Chongqing, China. The country wants to be the world’s maritime leader.
China Goes on Shipping Spree
BY COSTAS PARIS
AND JOANNE CHIU
China poured $20 billion
into ship financing this year,
reflecting the country’s ambition to become the world’s
dominant maritime player as
European banks have scaled
back their investments.
That is 33% more than Chinese banks invested in 2016,
according to the leasing arm of
Industrial & Commercial Bank
of China Ltd. It dwarfs China’s
financing as recently as 2008,
when its lessors lent just a few
million to shipowners that built
their vessels in the country’s
shipyards.
ICBC’s numbers only include
leasing deals, China’s preferred
financing method. Bilateral
loans, ship mortgages and private placements aren’t reported, but research firm Marine Money estimates that
Chinese financiers such as
ICBC, China Minsheng Banking Corp., Bank of Communications Co. and China Merchants Bank Co. account for as
much as one-quarter of a shipfinancing sector it values at
$200 billion a year.
European banks like Norway’s DNB ASA, Sweden’s Nordea and France’s BNP Paribas
still hold some of the world’s
biggest shipping portfolios, but
China’s growth has drawn notice.
“It’s an unprecedented shift
in ship financing,” said Basil
Karatzas, a New York-based
maritime adviser who has arranged many such deals.
“We’ve come from export credits, to a few Western owners, to
China becoming a mainstream
financier in both new and used
vessels.”
Three of China’s biggest
leasing firms, ICBC Financial
Leasing Co., Minsheng Financial Leasing Co. and Bank of
Communications
Financial
Leasing Co., own more than
800 vessels, valued at $23.6 billion. ICBC’s shipping portfolio
has grown to $10 billion this
year from around $600 million
in 2009, while Minsheng Financial Leasing has doubled its
shipping assets in the past
three years to $6 billion, or
more than 300 ships, Chief Executive Jerry Yang said.
In contrast, European financiers that were once heavyweights in the industry, including Royal Bank of Scotland
Group PLC and Lloyds Banking
Group PLC, have withdrawn
from shipping. Others, like Germany’s HSH Nordbank AG and
Nord/LB Group, are looking to
divest themselves of part or all
of their shipping portfolios.
“The traditional financiers
have either eliminated or drastically reduced their exposure,”
said Soren Skou, chief executive of A.P. Moeller-Maersk A/S.
Voya Financial Inc. is selling parts of its annuities businesses to a group of investors
led by Apollo Global Management LLC and its affiliates,
Crestview Partners and Reverence Capital Partners, the
company said Thursday.
Voya said the deal would let
it focus on its employee-benefits, investment-management
and retirement businesses.
The company also said the
deal, expected to close in the
second or third quarter of next
year, would lower both its insurance and market risk.
“This is the right time to
move forward with a more focused and higher-growth business mix,” Voya Chief Executive Rodney Martin Jr. said.
Voya is selling its Voya Insurance & Annuity Co. to Venerable Holdings Inc.—a new
entity owned by the investor
group—as part of the deal, the
company said. Voya will have
a 9.9% stake in that firm, valued at $32 million.
Voya will retain some of its
annuities business, including
about $6 billion in investmentonly products, it said. The
company said it would conduct a strategic review of its
individual life business during
the first half of 2018.
Athene Holding Ltd. and
Voya also said Athene will reinsure about $19 billion of annuity liabilities.
—Miriam Gottfried
and Leslie Scism
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.
Friday, December 22, 2017 | B11
* * * *
MARKETS
Potential heavy losses
Retro Trade
from Puerto Rico
The short interest in MBIA stock has returned to financial-crisis levels as
hurricane put bond
hedge funds bet against the shares again.
MBIA share price
MBIA short interest
insurer on hot seat
Percentage of shares outstanding
BY MATT WIRZ
40
20
30
15
20
10
10
5
0
0
2007
2007
’10
’10
THE WALL STREET JOURNAL.
Source: S&P Capital IQ
on insuring municipal bonds,
but defaults in that market
have mounted, calling the
firm’s business into question
again. Bearish investors doubt
the firm has set aside enough
capital to cover likely payouts,
especially now that Hurricane
Maria has crippled Puerto Rico,
where MBIA insured $3.4 billion of bonds.
“It’s not something we’ve
asked for or created,” said
MBIA’s head of investor relations, Gregory Diamond, about
the attention from hedge funds
past and present. “We are here
to operate our company as best
we can and to satisfy our obligations.”
Mill Hill founder David Meneret said he started buying
MBIA credit-default swaps before the hurricane struck because he believed the insurer
was undercapitalized given its
exposure to cash-strapped
Puerto Rico and financially
troubled states like Illinois and
Connecticut.
“We didn’t know when
something bad was going to
happen but with a company
that has so much leverage, any-
thing bad could be very damaging,” Mr. Meneret said
By one measure, MBIA has
done less to prepare for Puerto
Rico-related losses than its
competitors. MBIA’s most recently reported loss reserves
amount to about 10% of its exposure to Puerto Rico, compared with about 20% for Assured Guaranty Ltd. and about
40% for Ambac Financial Group
Inc., according to data from
S&P Global Market Intelligence.
Most of the Puerto Rico
bonds MBIA insured were issued by different entities and
JONATHAN LEVINSON/BLOOMBERG NEWS
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Hedge funds are increasingly betting on whether bond
insurer MBIA Inc. can survive
heavy losses expected from
Puerto Rico’s bankruptcy in the
aftermath of Hurricane Maria.
Short sellers have borrowed
about 40% of the firm’s stock
since September, wagering that
it will drop, while value investors Fine Capital Partners LP
and EJF Capital LLC have
taken the opposite side, buying
millions of MBIA shares.
Credit hedge funds like Mill
Hill Capital LLC have bought
credit-default swaps that gain
value as the probability of an
MBIA default rises.
Bond insurers charge premiums to companies and governments that issue bonds and
agree to take over interest and
principal payments if the borrowers default. That business
model backfired during the financial crisis, when the insurers took billions of dollars in
unexpected losses on mortgage
bonds. Bets against MBIA became a lucrative trade among
hedge-fund managers, notably
Bill Ackman.
MBIA recovered by focusing
Exxon Mobil opened its first gas station in Mexico this month. Exxon shares rose 1.2% to $83.85 as oil prices increased.
U.S. Stocks Finish Trading Higher
BY MICHAEL WURSTHORN
AND RIVA GOLD
Shares of banks and energy
firms rose to help major indexes snap a two-day streak of
declines.
Recent pledges from several
companies—
THURSDAY’S i n c l u d i n g
MARKETS
banks
and
telecommunic a t i o n s
firms—to share the benefits of
Republicans’ tax cuts with
their employees helped investors
overcome
concerns
around how much of the tax
bill had already been priced
into the market this year,
money managers said. The
S&P 500 is up 20% in 2017,
with gains partly driven by the
expectations of lower taxes.
“Corporate America is feeling flush,” said Charlie Smith,
chief investment officer of Fort
Pitt Capital Group. Instead of
using the tax cuts to pay more
dividends
or
repurchase
shares, some companies are
promising to pay their employees more or invest in big projects, he added. “This could
mark a sea change in corporate behavior versus what
no
Oil prices rose, with the
global benchmark hitting its
highest level since 2015 as investors jumped back into the
market, after prices had
p u s h e d
COMMODITIES lower
on
news that a
damaged
pipeline could soon come back
online.
Brent, the global benchmark, rose for a fourth day,
gaining 34 cents, or 0.5%, to
settle at $64.90 a barrel on
ICE Futures Europe. U.S. crude
prices rose for a third straight
day to settle up 27 cents, or
0.5%, at $58.36 a barrel on the
New York Mercantile Exchange, their second-highest
level of the year.
“It’s still generally a bull
market, and people are looking at where to buy into it,”
said Ric Navy, senior vice
president for energy futures at
RJ O’Brien & Associates LLC.
Prices fell early in the session after Ineos, which owns
the Forties Pipeline System in
the North Sea, said it expects
to complete repair work
around Christmas and bring
oil flowing through the pipeline “progressively back to
normal rates” early in the new
year.
The system was shut down
Dec. 11 after Ineos discovered
a hairline crack in a pipe. The
outage has stopped the flow of
450,000 barrels of oil a day.
The expected “normalization of the supply line” and
the return of crude to the
market was responsible for
pushing prices down slightly
Thursday morning, said David
Madden, a market analyst at
brokerage CMC Markets.
But
prices
recovered
throughout the day, a sign that
the market is maintaining its
bullish tilt, analysts said.
“The most supportive feature in today’s session in our
view was the ability of the
complex to hold value in the
face of an expected restart of
the Forties pipeline early next
week that could be followed
by normal flows early next
month,” said Jim Ritterbusch,
president of Ritterbusch & Associates.
The pipeline outage has
helped widen the gap between
Brent and the U.S. benchmark,
which could mean that U.S.
prices have more room to run
and could hit $60 sooner than
expected, Mr. Ritterbusch said.
Thursday’s rise comes after
prices were buoyed Wednesday after the U.S. Energy Information Administration released weekly data showing a
6.5 million barrel decline in
U.S. crude inventories for the
week ended Dec. 15.
But those daily price gains
were “limited by yet another
increase in U.S. oil production,” said Tamas Varga, an
analyst at brokerage PVM Oil
Associates Ltd. The EIA said
U.S. output increased by 9,000
barrels a day last week to 9.79
million barrels a day.
Prices have been steady
since the Organization of the
Petroleum Exporting Countries
and other producers including
Russia agreed last month to
extend production curbs
through the end of next year.
OPEC and 10 producers outside the group first reached
agreement a year ago to hold
back crude output by nearly
2% in an effort to drain a
global supply glut that has
weighed on prices since late
2014.
$25
50%
n-
BY CHRISTOPHER ALESSI
AND ALISON SIDER
Short Sellers Take Aim at MBIA
we’ve seen the last 10 years.”
Energy shares also rose as
U.S. oil prices settled at their
second-highest level of the
year. The gains helped offset
declines among shares of technology firms late in the session, which caused indexes to
pull back from their intraday
highs, and utilities.
The Dow Jones Industrial
Average climbed 55.64 points,
or 0.2%, to 24782.29, while the
S&P 500 rose 5.32 points, or
0.2%, to 2684.57. The Nasdaq
Composite added 4.40 points,
or less than 0.1%, to 6965.36.
Wells Fargo & Co. and Fifth
Third Bancorp said Wednesday
they would raise their minimum wage to $15 an hour, while
AT&T and Comcast promised
to pay a $1,000 bonus to most
of their U.S. workers.
Wells Fargo’s stock added
$1.47, or 2.4%, to $61.61, while
Fifth Third rose 42 cents, or
1.4%, to 30.93. AT&T gained 33
cents, or 0.9%, to 38.88 and
Comcast shares rose 1.43, or
3.6%, to 40.81.
Gains among Wells Fargo
and other banks pushed the
KBW Nasdaq Bank index of
large U.S. lenders 1.2% higher.
Meanwhile, energy stocks in
Power Surge
5%
Bank and energy stocks jumped
Thursday, pushing the S&P 500
to its first gain in three days
S&P 500 energy sector
4
KBW Nasdaq Bank Index
S&P 500
3
2
1
0
Monday
Tuesday
Wednesday
Sources: FactSet (S&P indexes); Thomson Reuters (KBW)
the S&P 500 rose 2.1%, as U.S.
crude oil gained 0.5% to $58.36
a barrel.
Chevron added 3.93, or
3.3%, to 124.82, contributing
roughly 27 points to the Dow’s
gain. Exxon Mobil added 98
cents, or 1.2%, to 83.85.
With the tax bill nearly
complete, some analysts and
investors say they are concerned that any resulting lift
Thursday
THE WALL STREET JOURNAL.
to corporate profits and the
economy could spur the Federal Reserve to quicken the
pace of interest-rate increases.
Elsewhere, the Stoxx Europe
600 rose 0.6% after two sessions of losses. At midday Friday in Tokyo, the Nikkei was
down 0.03%. Elsewhere in Asia,
the Shanghai Composite Index
was up 0.9%, while the Hang
Seng gained 0.27%.
Litecoin Creator Cashes Out in Effort to Avoid Conflicts
BY PAUL VIGNA
The creator of litecoin, one
of the major cryptocurrencies
that competes with bitcoin,
said he sold
CURRENCIES
his stake, an
about-face
in a world
often characterized by true believers and tech evangelists.
Charlie Lee, a former
Google engineer who created
litecoin in 2011, said on socialmedia site Reddit on Wednesday that he sold or donated
his litecoin tokens, though he
isn’t leaving the project itself.
He didn’t disclose the size of
his stake in the currency,
which has an overall value of
about $17 billion. He wrote in
the post that the disposal represented a small percentage of
daily trading volume, which,
according to research site
coinmarketcap.com, has been
about $1.8 billion in December.
Mr. Lee, who didn’t respond
to a request for comment, said
he felt he was in a position in
which any time he talked
about the currency in public
he was being accused of trying
to drive the price up for his
own gain. He added that he
had made enough from it over
the years that he didn’t actu-
ally need to still hold any litecoin. Selling the stake, he said,
was the best way for him to
continue overseeing the digital
currency’s growth without any
conflicts.
Until this summer when he
left to work full time on litecoin, Mr. Lee was the director
of engineering at Coinbase,
which operates a large platform for buying and selling
virtual currencies.
Like bitcoin and the secondlargest virtual currency, ether,
litecoin is an open-source software project, with Mr. Lee
leading a team of volunteer
coders and developers. Unlike
those other digital currencies,
litecoin initially didn’t have a
nonprofit foundation that
could guide that development.
This spring, Mr. Lee and others
formed the nonprofit Litecoin
Foundation for that purpose.
Litecoin was trading at
about $345 before Mr. Lee’s
announcement but fell as low
as $309 after his post on
Wednesday. Late Thursday,
litecoin was trading at about
$314, according to coinmarketcap.com.
“Don’t worry. I’m not quitting litecoin,” he wrote. “When
Litecoin succeeds, I will still be
rewarded in lots of different
government agencies than the
bonds insured by its competitors, and it is likely that recoveries will vary accordingly, Mr.
Diamond said.
The net dollar amount of
CDS contracts purchased on
MBIA after the hurricane hit
Puerto Rico increased $267
million to $1.13 billion through
Nov. 21, the most recent date
for which data are available,
according to Depository Trust
& Clearing Corp. The percentage of MBIA stock sold short
surged to 43% on Dec. 19 from
14% in September, according to
data from S&P.
CDS buyers have made large
returns on their trade so far—
prices of the derivatives have
tripled since September, according to IHS Markit. The
stock’s movement has been
more erratic, falling about 40%
to $6.22 in October from about
$10 in early September, before
rebounding to about $9 in November, when MBIA announced
a $250 million share buyback.
It closed at $8.10 on Thursday.
Sunesis
Capital
LLC
founder Manal Mehta, a longtime MBIA investor, said the
market is underestimating the
firm’s resilience. The insurer
will have decades to pay off the
Puerto Rico bonds it insured,
which is ample time for the island’s economy to bounce back
and for MBIA to recover money
through litigation and debt restructurings, he said.
ly
.
Crude Oil
Claws Back
As Bulls
Rule Day
ways, just not directly via ownership of coins.” He added in a
tweet: “You can’t compare me
to a CEO selling all his shares.
I’m the creator. Litecoin is like
my kid. I’m more invested in it
than someone holding” $1 million of the currency.
The move comes as longtime holders of cryptocurrencies weigh whether the record
prices should prompt some
selling to diversify and take
chips off the table.
Alternative versions of bitcoin, known as “altcoins,” have
been rising along with bitcoin
itself, sometimes by much
more.
Data on
Jobless,
GDP Lift
Treasurys
BY DANIEL KRUGER
U.S. government bonds
rose Thursday after the release of tepid economic data.
The yield on the benchmark 10-year U.S. Treasury
note snapped a
CREDIT
four-day streak
MARKETS of
increases,
falling
to
2.483%
from
2.497% Wednesday. Bond
yields fall as prices rise.
Yields fell after data showing jobless claims rose and
the economy grew slower in
the third quarter than first
estimated.
Initial jobless claims, a
proxy for layoffs across the
U.S., rose by 20,000 to a seasonally adjusted 245,000 in
the week ended Dec. 16, the
Labor Department said. Economists surveyed by The Wall
Street Journal expected
230,000 new claims last
week.
U.S. output grew at a 3.2%
annual rate in the third quarter, according to a revised estimate by the Commerce Department. The prior estimate
was 3.3%.
With the weaker data, the
recent impetus to sell “has
kind of subsided,” said
Thomas di Galoma, head of
Treasury trading at Seaport
Global Holdings.
The 10-year yield this week
reached its highest levels
since March as investors debated whether the run-up will
endure or whether it is a byproduct of thin holiday trading, when many traders and
investors are out of the office.
“One of the issues markets
are having is there just aren’t
enough people out there” to
ratify the sentiment in a convincing manner, Mr. di Galoma said.
The 10-year Treasury yield
has climbed from 2.353% on
Friday, while the two-year
yield has risen to 1.877% from
1.840%.
The widening gap between
the two yields has come as
many traders have unwound
bets that would benefit from
a narrowing in the yield
curve, as the difference is
known.
AUCTION RESULTS
Here are the results of Thursday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-YEAR, FOUR-MONTH TIPS
$38,965,244,400
Applications
$14,000,003,400
Accepted bids
$42,919,400
" noncompetitively
100.374263
Auction price (rate)
(0.370%)
0.125%
Interest rate
31.36%
Bids at clearing yield accepted
912828X39
Cusip number
The Treasury inflation-protected securities, dated
Dec. 29, 2017, mature on April 15, 2022.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B12 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
* *
MARKETS
Copper Shines in the Year of the Rally
Strong global growth
and supply concerns
have pushed the base
metal up 26% in 2017
Oct. 16
Copper hits three-year high following
robust producer-price data out of China
The metal is having its best year since 2010, boosted by robust
demand from China and the prospect of supply deficits.
$3.20
a pound
3.00
BY AMRITH RAMKUMAR
2.80
May 8
Prices tumble after weak
Chinese import data
2.60
Copper prices
Most actively traded Comex contract
2.40
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
...and the prospect of
demand exceeding supply.
Yet speculative investors have pushed net bets on
higher copper prices to their lowest level since May.
Copper prices, change from a
year earlier
Caixin China manufacturing
purchasing managers index
Copper supply-demand outlook
Net bets on higher copper prices, weekly
20
10
0
–10
–20
300 thousand metric tons
Projections
125,000 futures contracts
51
200
100,000
100
75,000
0
50,000
–100
25,000
SURPLUS
30
52
50
49
DEFICIT
CONTRACTING EXPANDING
40%
48
47
–30
0
–200
2015 ’16
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17
’17
2015 ’16 ’17 ’18 ’19 ’20 ’21
J
F
M
ly
.
...amid factory-activity
expansion in China...
A
M
Sources: FactSet (copper prices); Caixin, IHS Market (index); Wood Mackenzie, International Copper Study Group, Barclays (supply); Commodity Futures Trading Commission (bets)
ply-demand outlook. Tensions
between miner Freeport-McMoRan Inc. and the Indonesian government over control
of the giant Grasberg mine
and labor strikes across the
world have pushed copper into
a supply deficit that some analysts expect will persist in
coming years.
Hype surrounding a rise in
electric-vehicle adoption and a
possible boost to U.S. infrastructure spending that could
stoke demand for copper and
other industrial metals for
years to come have only added
to bullish sentiment.
Copper’s gains this year
have been part of a broadbased rally in metals. Nickel,
aluminum and zinc also hit
multiyear highs this year.
In October, the International Monetary Fund raised
its forecast for global economic growth to 3.6% this
year and 3.7% next year, up
from 3.2% in 2016 and higher
than its July projections.
Similar forecasts and the
possibility for more supply uncertainty as several labor contracts come up for renegotiation next year have copper
bulls perking up again. Industrial metals were stuck in a
bear market less than two
years ago, when copper tumbled below $2 a pound.
On Thursday, copper for
March delivery rose for the
12th consecutive session, up
2.35 cents, or 0.7%, to $3.2195
a pound, on the Comex division of the New York Mercantile Exchange.
“Just as we believe that
global economic growth is
likely to remain strong in
2018, we expect metals to continue to ride the cycle and
perform well next year,” Goldman Sachs Group Inc. analysts
wrote in a note to clients
Tuesday.
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Tax Bill Sets Stage for More Deals
Finishing Strong
Total announced U.S.-targeted mergers and acquisitions, 2017
$250 billion
200
n-
150
100
50
no
The starting gun for the
latest deal-making wave
went off a couple of months
ago when the contours of the
tax bill started to come into
focus. Now with the plan
nearly done, mergers and acquisitions should accelerate
next year.
The deal-making should
pick up in industries facing
pressure from technology,
changing consumer tastes or
new competitive pressure
such as media, consumer
brands and health care.
Other industries could see
upticks in deals as the tax
penalty for selling businesses
falls.
Mergers and acquisitions
picked up in the U.S. near the
end of the year, with November and December recording
$237 billion and $202 billion
of announced deals, respectively, according to Dealogic.
Total U.S.-targeted activity is
set to finish the year down
around 13% from 2016. Midway through the year it was
trending down by 17%.
Clearly, the tax policy uncertainty that was holding
back deals faded as reform
0
J
F
M
A
M
*Data through Dec. 13
Source: Dealogic
J
J
A
S
O
N
D*
THE WALL STREET JOURNAL.
plans started to come into
view in early November. One
big positive for prospective
sellers is the lower corporate
tax rate will reduce the tax
bill to companies that sell off
business units. Another is
the lower rate will give companies more cash to spend,
especially at a time when
share buybacks are less attractive because of high
stock prices. Finally, companies with overseas cash will
be able to bring it home,
though the biggest tech companies probably won’t go on
a spending spree.
Watch for more deals in
industries where businesses
have been bulking up to ward
off new competitors, adapt
to technological change or
both. Disney’s acquisition of
21st Century Fox’s entertainment assets is a response
to the rising heft of technology giants in content distribution. More deals are quite
likely.
Similarly, pressure to hold
down costs across the
health-care industry will
likely lead to more combinations, such as the bold CVS
Health-Aetna deal.
Finally, Campbell Soup’s
acquisition of Snyder-Lance,
maker of Kettle chips, and
Hershey’s deal for SkinnyPop
maker Amplify Snack Brands
show that aging packagedfood brands are still using
M&A to build out portfolios
of millennial-friendly products.
There are some headwinds
for deal-making. The tax bill
limits the amount of interest
payments companies can deduct, which will make highly
leveraged private-equity buyouts riskier and less lucrative. Another is antitrust enforcement. It is still not clear
how tough the Trump administration will be, but its effort to stop the AT&T-Time
Warner deal is a sign that
regulators won’t stand by
and let everything through.
The tax bill was a gift to
business. For some it will be
a wedding gift.
—Aaron Back
OVERHEARD
Remember when cellphones were huge, unwieldy
and extremely expensive?
Gordon Gekko yakked on a
$4,000, 2-pound behemoth in
“Wall Street.”
Until the smartphone era,
the trick was to get mobile
phones as small and cheap as
possible. Then the pendulum
swung in the other direction,
the most recent giant being
the just-released $1,000, 5.8inch iPhone X from Apple.
But a small subset of customers wants phones small,
cheap and even streamlined,
specifically people in prison.
Britain’s Secretary of State
for Justice, David Lidington,
gave a speech Monday urging
retailers to stop selling “Beat
the BOSS” phones. BOSS
stands for “body orifice security scanner.”
The tiny, nearly 100% plastic phones, available for $39
on Amazon when one types
those words, appear to fit the
bill.
Customers can’t take a
selfie or order an Uber with
them, but probably that isn’t
an issue.
How the Fannie Mae and Freddie Mac Dustup Could End
After years of political
stalemate over the future of
Fannie Mae and Freddie
Mac, things are beginning to
move in Washington. The big
news for investors is that the
ultimate endgame for housing finance is starting to take
shape in Congress.
In a surprise announcement Thursday, the Treasury
Department and the Federal
Housing Finance Agency said
they would allow the government-controlled housing finance giants to build up limited capital buffers of $3
billion each. This is a shift
from the existing arrangement under which both companies’ net profits are to be
paid to the federal govern-
Dec.
Copper is having its best
year since 2010...
co Fo
m rp
m e
er rs
ci on
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e
on
Copper is on track to post
its best year since 2010, supported by a favorable worldwide economic backdrop and
the prospect of mine disruptions across the globe.
The most actively traded
copper contract is up 26% in
2017 and hit its highest level
in three years in October.
Steady demand for the industrial metal—often considered
an economic indicator because
of its use in things from
houses to smartphones to vehicles—has supported prices,
signaling investors’ confidence
in this year’s rebound in
global growth. All of the countries tracked by the Organization for Economic Cooperation
and Development are on track
to post growth this year for
the first time since 2010.
“It’s just the synchronized
nature of this expansion” that
stands out, said François
Bourdon, chief investment officer at Fiera Capital Corp.
Mr. Bourdon said his firm recently sold its position in copper miners after a good run
but might buy again next year
if the global economy continues performing well.
China, which accounts for
roughly half of the world’s
copper consumption, has been
one of the standouts. Although
some investors expected the
country’s economy to slow
down in the second half of the
year around October’s Communist Party congress, China
has outperformed expectations, analysts said. Robust
demand from the manufacturing and real-estate sectors in
particular has buoyed basemetal prices.
Mine disruptions have also
led to a more auspicious sup-
Back and Forth
Cumulative total draws from and
dividends paid to the U.S. Treasury
Draws
Dividends
Fannie Mae
$116 billion
166
Freddie Mac
71
110
Note: Data is from 2008 through 3Q 2017
Source: The companies
ment until their capital buffers go to zero.
Nonetheless, the companies remain wards of the
state and their future remains uncertain. This is underscored by the fact that
both will be making large
draws on the Treasury, likely
around $14 billion between
them, once the tax overhaul
becomes law. The companies
will have to write down the
value of deferred tax assets
on their books, creating an
accounting loss. The circular
flow of money between the
companies and the Treasury
will remain in place.
Far more significant for
the long-term future of the
companies—as well as for
banks, homeowners and investors in mortgage-backed
securities—is a plan being
discussed in Congress. As
The Wall Street Journal has
reported, bipartisan Senate
legislation that could be in-
troduced early next year
would set up private competitors to Fannie and Freddie,
remove the two companies’
government backstop and replace it with an explicit government guarantee on mortgage-backed securities.
If properly designed and
implemented, such a plan
could ensure a continuation
of affordable housing for
American families, accessible
securitization outlets for
mortgage lenders and a stable mortgage-backed securities market for investors.
The plan keeps Fannie and
Freddie intact rather them
winding them down, which
could mollify holders of the
two companies’ shares, who
fear being wiped out.
If the aim were to eliminate Fannie and Freddie, as
earlier plans proposed, it
would make little sense now
to let them begin accumulating capital. But if the aim is
to put them in competition
against new private companies, Fannie and Freddie will
need some capital to compete effectively.
The real significance of
Thursday’s decision is that it
dovetails with the direction
being set in Congress. With
the White House and lawmakers from both sides of
the aisle seemingly on the
same page, durable housing
finance reform looks possible
in 2018.
—Aaron Back
J
J
A
S
O
N
D
THE WALL STREET JOURNAL.
Not everyone agrees, given
copper’s rapid run-up this
year. Some investors think the
rally has gotten ahead of supply-demand
fundamentals.
Concerns about a slowdown in
the Chinese economy have
also flared up.
Others say a rise in electric
vehicles and a potential U.S.
infrastructure spending bill
would likely have only a small
impact on global copper demand.
WSJ.com/Heard
Apple Is a
Threat to
Swiss Watch
Swiss watchmakers may
be tempted to toast a return
to more normal times this
Christmas. They shouldn’t,
not least because of furious
growth in Apple’s smartwatch sales.
November data released
Thursday showed growth for
a seventh consecutive month
in the value of Swiss watch
exports, a steady recovery after a dreadful couple of years
during which retailers ran
down inventories, particularly in Hong Kong. For several years, customer demand
in East Asia was hit by the
Chinese government’s efforts
to clamp down on corrupt
gift-giving.
But scratch beneath the
surface and the recovery
looks less healthy. It is geographically highly imbalanced, with exports to mainland China up 40% in
November and sales to the
U.S.—the second-biggest
watch market after sales-taxfree Hong Kong—still in decline.
Apple, which released a
new version of its watch in
September, could sell 17.9
million of the devices this
year, according to Citigroup,
up by roughly two-thirds and
ahead of the 16.9 million
electronic watches likely to
be exported by all the watchmakers in Switzerland.
About a quarter of Swatch
Group’s revenues come from
entry-level products that face
competition from smartwatches, estimates brokerage
Bernstein. The other big
listed watchmaker is Compagnie Financière Richemont; its portfolio of luxury
watches looks less exposed,
though likely not immune.
For the Swiss watch industry, the Chinese storm has finally blown over. But the Apple Watch storm is just
brewing. —Stephen Wilmot
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.
HOMES
|
MARKETS
|
PEOPLE
|
MANSION
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
|
‘If all the year were playing
holidays, to sport would be as
tedious as to work.’
—William Shakespeare
SALES
THE WALL STREET JOURNAL.
FIXTURES
|
BROKERS
Friday, December 22, 2017 | M1
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© 2017 Dow Jones & Company. All Rights Reserved.
|
ALL TOGETHER NOW Larry and Tricia Krueger remodeled their 6,800-square-foot house in Winnetka, Ill., to feel comfortable for just two while still being able to accommodate their extended family during the holidays. The Kruegers with Joey; daughters Olivia (plaid top with fiancé Chris Howard), Alex (with son Cade and husband Ben Kaplan) and Lauren (cream top with boyfriend Teddy Overton).
A One-Size-Fits-All Kind of House
Rather than downsize, some baby boomers-turned-empty-nesters want generously
sized homes that are cozy for a couple, but also comfortable for a crowd.
BY CECILIE ROHWEDDER
growing for dual-purpose homes that can be cozy
for a couple, but also comfortable for a crowd.
Architects are designing compartmentalized floor
plans that concentrate the owners’ living space
in one area, with separate guest cottages or
wings that can be closed off when not in use.
Others are designing open floor plans with barn
or pocket doors to subdivide spaces to create
more bedrooms when needed. Or they find creative uses for rooms that, for only a few days a
year, house friends and family.
Please turn to page M10
n-
DURING THE HOLIDAYS, Larry and Tricia Krueger’s house in Winnetka, Ill., comes to life. Three
grown daughters return home, bringing partners
and a new grandson. Bedrooms fill up, the dining room gets used and a game room becomes
the site of pool and ping-pong tournaments.
When the last of their children left home last
year, the Kruegers embarked on a big renovation
that replaced the formal living room with a more
flexible, open floor plan, created three dining areas for different group sizes and built a bright
basement playroom for times their grandson
comes to visit. When it is just the two of them,
the Kruegers eat in the kitchen, and spend much
of their time in the living space just outside it.
“A lot of times, it’s just the two of us,” says Ms.
Krueger, a 61-year-old homemaker. “But we
wanted to be sure we had enough space for everyone to gather.”
As the last members of the large baby-boom
generation become empty-nesters, demand is
no
A LUXURY WISH LIST FOR SANTA
INSIDE
Forget the jewelry. Skip the car. Mansion asked real-estate pros to suggest a splurge for those who have
been really, really nice. Some picks: a $475,000 pool with an adjustable floor and a $17,879 meat slicer.
BY ALINA DIZIK
WHEN IT COMES to musthaves for the home, there is
no need to covet thy neighbor’s. We asked a host of interior designers, top executives, developers and others
in the know, to dream big for
the holidays. Here are some
of the one-of-a-kind items on
their wish lists, along with
items they have installed in
others’ high-end homes.
SPORTS CENTER
$29.5 million listing is
ready to play ball M2
• LIVING WALL
VAUNTED VILLA
A $1.9 million
Dutch renovation M3
CALVIN BAINES; ILLUSTRATION BY CHRISTOPH HITZ
Kari Whitman, interior
designer, Los Angeles
“I recently installed a living wall
in the bathroom for a client
and it just makes everything
smell good. We use plants that
don’t need sun: sage, lavender,
mint and moss. When you take
a shower the steam comes up
and the whole bathroom smells
like natural oils. We installed a
spritz system behind the wall,
but it’s pretty minimal maintenance. Especially if you are living in a city, it brings the outside in. You get this beautiful
living wall even while it’s snowing outside.”
Price: $12,000 to $15,000
Please turn to page M4
IT’S ALIVE The living wall in this downtown Boulder, Colo., home features air moss, sage and a splash of lavender.
SNOWMAN’S LAND
Three homes for sale
in snowy locales M8
KATRINA WITTKAMP FOR THE WALL STREET JOURNAL
Rockabilly legend
Wandy Jackson on her
girlhood playing
guitar. M6
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.
M2 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
NY
MANSION
PRIVATE PROPERTIES | KATHERINE CLARKE
Larry Silverstein Lists in NewYork
dining room. Mr. Silverstein noted the
use of sliding doors to separate the
living and dining rooms, which could
be left open to give a sense of space
when entertaining but closed for privacy if necessary.
Mr. Silverstein said he couldn’t remember exactly what he’d paid for
the home, but it was “significantly
less” than its value today.
The couple is moving to 30 Park
Place, a downtown condominium recently completed by Mr. Silverstein’s
eponymous company, which is a block
from his office at the trade center.
From their window, he and his wife
will be able to peer out at the office
buildings 3 World Trade Center and 4
World Trade Center, which his company built. Mr. Silverstein’s daughter,
Lisa Silverstein, and her family are
also moving into the building, into a
lower floor, he said.
“We’ll have our own compound
up in the sky,” he said. The developer
also joked that his 12-year-old
grandson had promised to show him
how to use his skateboard to tackle
the short commute to the office.
“We’re in active discussions about it,”
he said.
Agents Meredith Verona and Betsy
Messerschmitt of the Corcoran Group
have the Park Avenue listing.
SPORTS CENTER: MIAMI BEACH ESTATE
BUILT FOR FUN ASKS $29.5 MILLION
A Miami Beach estate with a
movie theater, a beauty salon and a
white sand volleyball court is coming on the market for $29.5 million.
The 19,530-square-foot Italianate house, known as Villa Sole,
also has 12 bedrooms and 14 full
bathrooms, a spa, an infinity pool,
a golf putting green, a boat dock,
a lighted tennis court and a basketball court. The sand for the volleyball court was flown in, said
owner Joel Meyerson, adding that
his late wife used to enjoy thrice
weekly blowouts in the hair salon.
He said his three children, aged
22, 21 and 17, typically use the
theater, which has its own ticketing window, to play the videogame
“Call of Duty.”
A cosmetics and over-the-counter drug executive, Mr. Meyerson,
59, said he designed the home in
such a way that he and his children could jump off the secondfloor balcony into the pool, which
they do regularly. For a greater
thrill, the children also jump off
the roof into the pool, he said.
Mr. Meyerson said he bought
the site on Pine Tree Drive for $1.7
million in 2002 and spent three years
and more than $10 million building
his dream home.
In a bid to ensure privacy, he later
purchased an adjacent 43,900square-foot vacant lot, which together
with the property creates a total lot
size of 88,274 square feet. The vacant lot can also be purchased for an
additional $11 million.
A sculpture by artist Fernando Botero on display in the garden can be
sold with the property at additional
cost, Mr. Meyerson said.
Jill Hertzberg and Jill Eber of the
Jills team at Coldwell Banker Residential Real Estate have the listing.
GREY GARDENS SELLS FOR $15.5 MILLION
On WSJ.com: House of the Year
VOTING ENDS JAN. 2
See more photos of notable
homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
no
PALM BEACH
n-
Grey Gardens, the East Hampton,
N.Y., mansion immortalized by a documentary and an HBO movie, has
sold for $15.5 million, according to the
listing agency.
Built in 1897, the 6,000-squarefoot, 12-room house on Georgica
Pond was previously owned by “Little
Edie” Beale, first cousin of Jacqueline
Kennedy Onassis. Ms. Beale and her
mother were depicted in a 1975 documentary as two reclusive, formerly
upper class women living in poverty.
It later inspired the HBO movie starring Jessica Lange and Drew Barrymore, as well as a Broadway musical.
The seller was journalist Sally
Quinn, who owned the property with
her late husband Ben Bradlee, the
longtime executive editor of the
Washington Post. Ms. Quinn recently
released a memoir, entitled “Finding
Magic,” about her relationship with
the property.
On 1.7 acres with a tennis court
and a swimming pool, the home was
listed for sale in February for close to
$20 million, according to a spokeswoman for Corcoran. Ms. Quinn and
Mr. Bradlee bought the shingle-style
property for $220,000 in 1979 and
restored it. It served as the summer
home for the couple and their son
Quinn until Mr. Bradlee died in 2014
at the age of 93.
“This is a bittersweet moment for
me, but I feel grateful that the new
owners will cherish the house as much
as Ben, Quinn and I did, and that their
time there will be as magical as ours
was,” said Ms. Quinn in a statement.
The listing agent, Michael Schultz
of the Corcoran Group, declined to
comment on the buyers, identifying
them only as a couple who loved the
house and who plan on restoring it.
ONE OF A KIND
SPECTACULAR OCEAN TO INTERCOASTAL
SPECTACULAR OCEAN TO INTERCOASTAL
ESTATE
ESTATE
The best built & most unique custom home of its kind! Highest quality
finishes & features exclusive to this home. Soaring 10’ glass sliding
doors create simultaneous views & access to Ocean & Intercoastal.
Price upon request
Linda Gary 561-346-5880
201 Worth Avenue • Palm Beach, Florida 33480
Office: 1-561-655-6881 Email: Info@LindaAGary.com
www.LindaAGary.com
Le Chateau Horizon Mansion
Custom Mountain Top Home
Le Chateau Horizon Mansion in Northeast Tennessee
Custom built European inspired home in the most beautiful
area of Johnson City. The home rests on 17 acres of
immaculately manicured grounds with fantastic views,
3 car detached & 2 car attached garage. Master craftsmanship
is evident upon entry of the 2 story foyer with marble
!"
# center, theatre room, wine cellar. Offered at $7,500,000.
Jackie Montgomery
Luxury Real Estate Advisor
Engel & Völkers Chattanooga
Mobile: +1-504-451-3395
jackie.montgomery@evusa.com
©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. All information provided is deemed
Opportunity Employers and fully support the principles of the Fair Housing Act.
These homes are in
the running to be the
House of the Year, as
chosen by readers.
An estate in Scotland’s
western highlands, top left,
includes a restored 14,500square-foot house that
dates to 1760. Three
lakes dot the 250 acres of
grounds, along with
pastureland and woods.
In Manhattan, architects
Annabelle Selldorf and
Jeffrey Beers each did a
remodel of this industrialstyle loft, bottom left.
Measuring 7,000 square
feet, the two-story apartment was once the basketball court of a YMCA.
Pick your favorite at
WSJ.com/realestate.
IT’S THE
DIFFERENCE
BETWEEN
NOBU SUSHI
AND
DELI SUSHI.
YOU KNOW WHICH IS
BETTER. REALTOR.COM
HAS 20% MORE ACTIVE
LISTINGS IN NYC
THAN STREETEASY.
CLOCKWISE FROM TOP RIGHT: DANIEL PETRONI (2); STUART RUSSELL PHOTOGRAPHY; CORE; THE CORCORAN GROUP; ALLYSON LUBOW/THE CORCORAN GROUP
co Fo
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After spending over 33 years in the
same Park Avenue apartment, Larry
Silverstein, the man behind the redevelopment of much of the World
Trade Center site in Manhattan, is
selling his home to move downtown.
Mr. Silverstein, 86, and his wife
Klara, 85, are listing their home at
500 Park Avenue in Midtown for
$13.9 million. They’ve lived in the fivebedroom home since they moved
from White Plains, N.Y., after their
children went off to college, he said.
The full-floor, 4,653-square-foot
condominium has a spacious living
room for entertaining with views of
Central Park, a paneled library and a
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.
Friday, December 22, 2017 | M3
NY
MANSION
BALANCE SHEET
KEY
COSTS
Makeover Budget
With ‘No Limits’
Kitchen
$47,000
Living room
stucco
A Dutch entrepreneur spends $1.9
million to transform his redbrick villa
$77,000
Leather (paneling,
stairs and floors)
Wood floors
$94,500
Electrical work
HIT WALLS Steven Meester, standing right, and interior
designer Osiris Hertman. Above, a leather-panel wall in
the living room. Below, copper lights in the dining room.
$37,800
Heating/cooling/
ventilation
$94,500
Bathrooms and
wellness area
$294,000
Facade work
$118,000
Landscaping, with
reflecting pond
and deck
$73,800,000
HERMAN VAN HEUSDEN FOR THE WALL STREET JOURNAL (4)
now a space for his children.
Alkmaar may seem an unlikely
place to find a multimillion-dollar
home. The city is “cute and
friendly,” Mr. Meester says. “In the
big houses, you don’t see your
neighbors,” he says of areas like
the Gooi, a cluster of upscale villages in the middle of the country.
Mr. Meester’s villa is surrounded by row houses, and his
street has the bustle of a provincial city. When the family wants
quiet, they go to a lakeside home
in the far north of Holland that
Mr. Meester built in 2010. He also
keeps a sailboat on Turkey’s Aegean coast.
$272,000
New furniture
$213,000
Architect’s fee
$70,900
Lighting
$38,000
Sound system
HOME SPA The master bath was a splurge. It has a
sauna, a steam room, a fireplace and a liquor cabinet.
$71,000
The Field Team
Wishes You a
Joyous 2018
no
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212 Fifth Avenue, Penthouse
$32,000
ly
.
A DUTCH VILLA’S landmark status meant its redbrick exterior
couldn’t be altered, but that didn’t
stop its new owner from creating
an elaborate interior for the
early-20th-century home during
his extensive renovation.
Dutch entrepreneur Steven
Meester added bespoke furniture,
a spa and leather-upholstered
stairs to the 1917 home. He bought
the property in 2015 for $1.1 million, then spent $1.9 million on the
makeover, completed late 2016. He
shares the home, set on a quarter
acre, with his three children, ages
17, 10 and 6.
The three-story, 3,300-squarefoot house is in Alkmaar, a Dutch
city north of Amsterdam known
for its well-preserved historic center and its seasonal cheese market.
“The house was in good condition,” says Mr. Meester, 47, cofounder and managing director of
the Vercom Group, which works in
the packaging industry. “But we
removed everything.”
Inside, Mr. Meester worked with
Dutch interior designer Osiris Hertman. The home’s original layout included several small rooms on the
two lower floors and an open, unheated attic. Mr. Meester opted for
an expanded kitchen downstairs, a
master suite upstairs, and three
children’s bedrooms and a second
bathroom in the former attic.
Dutch landmark rules require
that original doorways be preserved, but the doors can be
moved. The new kitchen, fashioned
out of two rooms, ended up with
two doorways. Mr. Hertman converted one into a wine cabinet; the
vintage door is on a bedroom.
The project suffered some false
starts. At first, Mr. Meester wanted
a white ceiling in the kitchen, but
ended up making the dark room a
bit darker with a barn-wood ceiling to complement the room’s epoxied wood paneling and chocolate-brown parquet floors.
Then the living room was finished with white-on-white French
wallpaper, but Mr. Meester
changed his mind and replaced it
with a geometric, dark stucco
made by artisans on site.
Another renovation requirement
was the preservation of the original fireplace mantelpieces, which
Mr. Hertman found “too classical.”
He updated the fireplaces with luxury touches such as leather paneling behind them and contemporary elements, like glass, inside.
Mr. Meester put in gas-burning
hearths for convenience, and
added an outdoor fireplace to a
new terrace off the dining room.
Near the top of Mr. Meester’s
wish list was a spa. He added it to
the master bathroom, which has a
sauna, a steam room, a fireplace
and a liquor cabinet concealed
with salvaged-wood doors. The
space, along with a second bathroom and half-bath, cost $294,000.
“I didn’t have a budget,” says
Mr. Meester. “There were no limits, and so I got what I wanted.”
The makeover extended to the
backyard. It has a large sun deck
and a reflecting pool filled with
large stones, Japanese-style. The
property’s original guesthouse,
which also has landmark status, is
co Fo
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BY J.S. MARCUS
157 West 57th Street, Tower 85 $70,000,000
THE FIELD TEAM
Radu Sirbu
Ben Pofcher
Patricia Wheatley
Andrew Sideras
Gillian Friedman
Craig George
Silvia Wong
Daniel Chang
Amanda Field Jordan
Helen Marcos
Jeanne Bucknam
Kevin B. Brown
Nikki Field
LOCATION
The Carlton Mansion
PHOTOGRAPHER
Jill Lotenberg
1 Central Park South, Apt 1809 $50,000,000
19 East 61st Street, Mansion
$40,000,000
| nikki.field@sothebyshomes.com | NikkiField.com
East Side Manhattan Brokerage, 38 E 61st St, NY, NY 10065. Operated by Sotheby’s International Realty, Inc (SIR). Real estate agents affiliated with SIR are independent contractor sales associates and are not employees of SIR.
Equal Housing Opportunity.
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.
M4 | Friday, December 22, 2017
THE WALL STREET JOURNAL.
NY
MANSION
A LUXURY WISH LIST FOR SANTA
Continued from page M1
• BERKEL WORLD
AUTOMATED FLYWHEEL
MEAT SLICER
• JAMES PERSE LIMITED EDITION POOL TABLE
Raul Leal, CEO of Virgin Hotels, Miami
“I love to entertain, and this table kind of serves as double duty. You can
have dinner and then you can convert it to a pool table and get right into
the game. It’s a great centerpiece. It looks earthy, and I gravitate to natural
materials. I am trying to make the space downstairs into a game room and
I’m already checking the measurements. There’s a short wall that I may
knock down to make it fit.”
Price: $26,500
• INDOOR HOCKEY RINK
ly
.
Vanessa Antonelli, nursery and
kid-space designer, Manalapan, N.J.
“Synthetic rinks are the hot thing
right now. My sons are 3 and 7
and it’s something that will get all
the kids to our house for games.
They last for 20 years, and you
can use regular ice skates. It’s
very quick to install but you need
to install some glass and actually
design around it to make it fit into
the home.”
Price: $30,000 to $40,000
co Fo
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• HIDDEN TEMPERATURECONTROLLED WINE CAVE
Anita Summers, associate principal
at the Johnson Studio at Cooper Carry,
Atlanta
“I live in a bungalow and in the central hallway, there would be a trap
glass door in the floor that leads to
the wine cave in the basement. You
could lift up the rug to see it. I think
it would be kind of special to have it
hidden and be in an unused part of
the house. We design temperaturecontrolled wine rooms all the time,
but they are never hidden.”
Price: $75,000
• ELEKTRA BELLE EPOQUE COFFEE MACHINE
Meg Prendergast, principal of hospitality design firm Gettys Group, Chicago
“This machine has references to the legacy of Italian coffee making. It’s not
just your average coffee maker. It’s for a completely bespoke environment. I
see it more of a specialty at a chalet house or winter home that overlooks
one of those beautiful Italian lakes. It’s definitely something for an elite
space. We’re doing a larger model that looks a lot like this on a cruise ship.
We’re developing a French bistro for them. There’s definitely a more modern
and contemporary way of delivering espresso, but people appreciate the visual value of it. And you’ll never have to worry whether you were going to
get a good cup of coffee.”
Price: $14,000 and above
no
n-
Gather Around
a New Kitchen
Counter This
Holiday Season
Celebrate the holidays, and a
renovation, with Caesarstone and
you could receive a $150 Houzz
gift card. Visit a local design partner
for more details* and explore our
winter warm colors yourself.
caesarstoneretailers.com
212.505.2000
50 W 23rd St.
New York, NY
Kitchen &
Bath Designs
631.462.1200
233 Commack Rd
Commack, NY
MCK+B
212.995.0500
41 W 25th St
New York, NY
Modiani Kitchens
201.568.7800
46 S Dean St
Englewood, NJ
Saint Clair Kitchen
& Home
973.762.9500
110A Valley St
South Orange, NJ
Scavolini Store
Brooklyn
718.249.1214
1870 Bath Ave
Brooklyn, NY
Swan Tile & Cabinets
516.233.2260
2075 Jericho Turnpike
New Hyde Park, NY
Swan Tile & Cabinets
516.997.3097
562 Grand Blvd
Westbury, NY
Cesar New York
an Italian Cabinetry Company
*Offer valid through December 31, 2017
Color shown: 4330 Ginger
CLOCKWISE FROM TOP: JAMES PERSE; ELEKTRA S.R.L.; GLICE RINK; DINA AVILA FOR THE WALL STREET JOURNAL; VAN BERKEL USA; ILLUSTRATION BY CHRISTOPH HITZ
Michael Reginbogin, co-founder of
Knead Hospitality + Design group,
Washington
“It’s definitely a show stopper. You’re
pairing that with jambon and bringing
the holidays together in the kitchen. I
recommend getting the optional stand
so you can have a beautiful display on
any kitchen island. (When not in use,
you can simply cover the jambon, it’s
cured so the ham lasts you several
months.) It’s actually motorized so
you can plug it in. I have had the
good fortune of working with them in
restaurants. It’s a piece of art first
and foremost.”
Price: $17,879
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.
Friday, December 22, 2017 | M5
NY
MANSION
• INFRARED SAUNA
• 1820 LOUIS XIV MARBLE
FIREPLACE MANTEL
Summer Thornton, interior designer,
Chicago
“This is a second mantel that I received as a gift. It will actually be going in my kitchen, but it’s not integrated into the cabinetry. Our kitchen
is at the very back of the house that
leads out into the garden, and the
mantel is the focal point when you
enter the room. It’s marble that is almost 200 years old with really strong
veining and some plum tones, which
I’m liking now.”
Price: $12,000
• ADJUSTABLE POOL FLOOR BY AKVO SPIRALIFT
Nicole Alexander, interior designer at Siren Betty Design, Chicago
“In all of our high-end residentials, we’re pushing this pool because you can put anything on it—it’s totally versatile. You can lift up the pool floor to where you can play basketball or create a deep swimming pool with it in the
summer. You can drain it and use the space for dining. A regular pool just sits empty, but you can even park cars
on this one, it’s so durable. If you live in [colder regions], you can also build it indoors. The controls integrate into
the home system so you can lower [the pool floor] remotely from your phone.”
Price: $475,000 (including installation)
• COMMISSIONED
HOMEOWNER PORTRAIT
• MONOLITH CARVED
STONE TUB
Kara Smith, president at SFA Design,
Los Angeles
“It’s the ultimate luxury because it’s
something that is one-of-a-kind and
personal. These are often abstract
without a background—it’s definitely
not a ‘sit down and let me draw you’
kind of thing. I have a couple of clients that have done this recently as
gifts. It’s classier if the portrait is not
such an obvious replica of the person.
It works well in the dressing area or
bedroom, but we did one in an entry
area when it was really abstract.”
Price: $50,000 and above
co Fo
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Allison Greenfield, partner at developer Lionheart Capital, Miami
“It’s one piece of stone that is carved
into a monolith soaking tub. It takes a
ton of workmanship to get it into that
shape and keep it in one piece. I
would drop it right in the middle of
my bedroom. It’s a piece of sculpture,
so it deserves its own space there. I
wouldn’t put it in the bathroom—it is
too magnificent for that. Finding a
piece of stone this size is very rare.
The uniqueness of the stone stops
your heart.”
Price: $30,000 and above
What’s on Your Wish List?
• CONSERVATORY BY TOWN AND COUNTRY
Tom Konopiots, principal at interior design firm Vincere, Chicago
“It’s a beautifully made product that conveys a sense of magnificence. It could be used,as a garden room, outdoor
dining area or just a place for relaxation. You can add radiant heat or air conditioning, so you can use the space
year-round. It’s completely surrounded by glass with a roof that is glass as well. They are put on a foundation and
wired for electricity. We recently designed one for a client that has become another living space—it feels special.”
Price: $400,000 (with installation)
A helipad? A swimming pool for
the dogs? If money were no
object, what luxury item would
you want in your house?
Email your ideas to
leigh.kamping-carder@wsj.com
and we’ll publish a
selection of your
answers.
no
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63+ Acres In The Heart Of Deer Valley
PURE, PREEMINENT
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Imagine a palatial alpine estate surrounded by 63+ private acres in the heart of Deer
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7 Bedrooms - 8 Full Baths & 4 Half Baths
Living Area: 24,437 SF
Total Area: 28,399 SF
Elysian stone fireplace and massive timbers are joined together to create a remarkable
Romanesque gathering room which has been appreciated by Governors, Heads of
State, and Prime Ministers from across the globe. This one-of-a-kind estate includes a
secluded fishing pond, private hiking trails, a golf green, along with impressive ATV/
snowmobiling and snowboard backcountry terrain. Located just beyond the gates you
will find Silver Lake Village, the home of Stein Eriksen Lodge and the award winning
Deer Valley Ski Resort which is consistently ranked #1 in guest service among ski
resorts in North America, as rated by the readers of SKI Magazine. This spectacular
mountainscape residence can be enjoyed by all your guests through in-house year-round
Lot Size: 2+ Acres
activities that include an indoor heated pool, first-class fitness facilities and private spa
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and entertainment area. Additionally, there is a 22-car heated garage perfect for storing
recreational vehicles, toys and precious antiques. Contact us today for your private tour.
John O. Pickett, III
Senior Broker Associate
561-301-5266
jpickett@bhsusa.com
Licensed Real Estate Broker. All information is from sources deemed reliable but is subject to errors or omissions. No representation or guarantee is made
as to accuracy. All measurements and square footage are approximate and should be re-measured by customer. Equal Housing Opportunity Broker.
Co u r t K l e k a s • S h a r o n L i e s e • Pa u l B e n s o n | E n g e l & V ö l k e r s Pa r k C i t y
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©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. Engel & Völkers and its
independent License Partners are Equal Opportunity Employers and fully support the principles of the Fair Housing Act.
All information provided is deemed reliable but is not guaranteed and should be independently verified. If your property is
currently represented by a real estate broker, this is not an attempt to solicit your listing.
CLOCKWISE FROM TOP: AKVO SPIRALIFT/DESIGN BY GUNCAST (2); SUMMER THORNTON DESIGN; TOWN & COUNTRY CONSERVATORIES; STONE FOREST; HEALTH MATE SAUNA
Michael Achenbaum, president at
Gansevoort Hotel Group, New York
“It’s a great way to detox. Or even if
you’re working out and committed to
being healthy, it’s a great way to
loosen up muscles after a great workout. It gives you the equivalent of
getting a suntan without getting the
suntan. We have the steam room and
dry heat in some of our hotels, but it
would be great for a home. Especially
in cities like London when you always
feel the weather being so damp, you
want to feel a little heated up.”
Price: $5,000
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.
M6 | Friday, December 22, 2017
MANSION
HOUSE CALL | WANDA JACKSON
‘Elvis Taught Me to Play Rock ’n’Roll’
The early female rockabilly headliner learned to let loose at the King’s home; today, a house in Oklahoma
own room, but it wasn’t very private. My parents had to pass
through to get to the kitchen.
To take the load off his feet,
daddy drove a cab. Mother landed a
good job at nearby Tinker Air Force
Base working as a keypunch operator.
When I was 14, church friends
convinced me to take my guitar to
KLPR and audition for their talent
show. I sang “Blue Yodel No. 6” and
won. They gave me my own show.
In 1955, I began recording
for Decca and bought a Martin D-18
guitar at a pawnshop. I
also toured a little with Hank
Thompson and appeared at the
Grand Ole Opry.
I was one of the first female
country singers to wear sexy
clothes. Back then, that meant
glamorous dresses with spaghetti
straps rather than the typical
fringe-covered Western pantsuits.
I idolized how Marilyn Monroe
looked in magazines. Mother made
all of my clothes. She sewed for me
until she was 90.
In July ’55, I visited a radio station in Missouri to promote my records. A boy named Elvis was
there, too. He asked me to tour
with him, and after our first run in
’55, he asked me over his house.
He put on R&B records and
taught me how to play rock ’n’ roll.
He had just figured it out and encouraged me to loosen up. He also
showed me how to strum the
strings rather than pick them.
Today, I live in Oklahoma City. I
met my late husband Wendell here,
and we started a family. We moved
into our ranch house 32 years ago.
Over time, instead of building up
QUEEN OF TEENS Wanda Jackson in White Avenue Studio in Nashville,
above, and, left, with her mother, Nellie, in Maud, Okla., around 1940.
We moved up there to a shotgun
house when I was 8. It was made of
knotty pine, and mother decorated
it. It was the first place in California where we lived alone.
But barbering was hard on
daddy’s feet, and mother was
homesick. In early 1947, we moved
in with my Aunt Flossie in Oklahoma City.
Flossie owned a duplex on South
High Street. We lived in one half
and she lived in the other. I had my
we built out over two lots.
I love to relax in my den. I have
white furniture, reddish berry-color
carpeting and paintings.
My first Martin guitar is in the
Rock and Roll Hall of Fame, but I
still have my favorite one—a
Fender Kingman acoustic model
from the late 1950s. I also have a
ring Elvis gave me.
Unfortunately, I was hard on my
stage clothes. Many of the ones
that survived are in museums
around the world. I still have some
in my closet, but I wish I had kept
more of them. They remind me of
my mother.
—As told to Marc Myers
Wanda Jackson, 80, is a singersongwriter and guitarist who was
one of the first female rockabilly
recording artists. She is the author, with Scott B. Bomar, of the
memoir “Every Night Is Saturday
Night” (BMG).
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DAVID MCCLISTER FOR THE WALL STREET JOURNAL (PORTRAIT); WANDA JACKSON (HISTORICAL)
girl singer. I never did plan for anything else.
Daddy’s favorite singer was Jimmie Rodgers. One of the first songs
I learned was his “Blue Yodel No.
6.” If I was going to be a girl singer,
I had to learn to yodel. I worked at
it and figured it out.
When we first moved to L.A.,
daddy had a laundry service. Eventually he went to barber school.
But the first barbering job that
opened up was in Greenfield, Calif.,
near Bakersfield.
co Fo
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I was an only child and fairly
lovable. I was born in Maud, Okla.,
but I remember little about what
life was like there. When I was 5,
my family moved to Los Angeles. It
was the middle of World War II,
and the West Coast offered better
jobs and warmer weather.
We drove to California in a twodoor Pontiac coupe. When we arrived in L.A., my parents rented a
single room in a building on South
Gramercy Place. We only had a hot
plate and an icebox. But before
long we rented an apartment in a
huge house on Menlo Avenue. It
had a kitchen, living room and bedroom. The bathroom was down the
hall and shared by the floor.
I don’t remember my parents
ever arguing. My mother, Nellie,
was more traditional than my
daddy, Tom, and they kind of balanced each other out.
Whenever my parents went out
to hear country music and to
dance, they took me along. Babysitters didn’t exist then. They loved
Western swing, and I saw artists
like Bob Wills and His Texas Playboys and Tex Williams.
Western swing combined country with jazz and big-band swing. It
was pretty popular in L.A. then, especially among people like us—Okies who had moved there from the
Southwest.
Daddy played guitar and fiddle.
While mother cleaned up after dinner, we played and sang together. I
was crazy about rhythm, and horns
and fiddles. When I was 6, daddy
bought me a little Kay guitar from
the Sears catalog and taught me
basic chords. As soon as I held that
Kay, I knew what I wanted to be—a
ly
.
I always had a beautiful relationship with my parents. I know that
sounds strange for someone who toured with Elvis Presley in 1955 and
’56 and recorded rock ’n’ roll. But I really didn’t have a rebellious streak.
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.
Friday, December 22, 2017 | M7
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THE WALL STREET JOURNAL.
M8 | Friday, December 22, 2017
MANSION
RELATIVE VALUES
IT’S LIKE LIVING IN A SNOW GLOBE
FROM LEFT: NANCY WATT; RACHEL LUSKY; 8Z REAL ESTATE
Homes for sale in U.S. cities with some of the heaviest snowfalls in the country; bars and a floor-to-ceiling fireplace
$1.9 million
$1.1 million
$8.5 million
Fayetteville, N.Y.
Six bedrooms, four bathrooms, three half-baths
Erie, Pa.
Seven bedrooms, four bathrooms, three half-baths
Boulder, Colo.
Four bedrooms, four bathrooms, two half-baths
This 9,855-square-foot home is in the eastern suburb of Syracuse. The 5.6-acre property borders a nature preserve. A twostory living room features a fireplace and large bay window. The
family room has a floor-to-ceiling stone fireplace, with a two-story
paneled vaulted ceiling. It opens to a large sunroom. Another family room, with a bar and a brick wine cellar, is on the lower level.
Agent: Nancy Watt, Hunt Real Estate ERA
This 6,802-square-foot Tudor-style home overlooks Presque Isle
Bay and has a private stairway to the beach. Built in 1932, the
home retains many of its original features, including the coffered
ceilings. The lower level has a billiard room, and the first floor has
a study/library with built-in bookcases. Outside, there is a sunken
garden with stone walls.
Agent: Tom NeCastro, Coldwell Banker Select Realtors
This 8,702-square-foot home, built in 2007 on 1.2 acres, is in
Paragon Estates. It has a 1,000-square-foot study with a wet bar.
The contemporary home features an elevator and a chef’s kitchen.
The living room has large windows with mountain views. Outside,
there are nearly 2,000 square feet of terraces and patios.
Agent: Julia Cantarovici, 8z Real Estate
—Stacey Altherr
ADVERTISEMENT
ly
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Distinctive Properties & Estates
To advertise: 800-366-3975 or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
Friday, December 22, 2017 | M9
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THE WALL STREET JOURNAL.
M10 | Friday, December 22, 2017
MANSION
n-
OUT OF SIGHT At Jeremy and Jacquelyn
Jaech’s property in Mason, Wash., guest space is
in cottages and above the garage. ‘We never see
the unused space,’ says Ms. Jaech. The kitchen
in the main home, right; the couple with puppy
Penelope and Mackinley, on the ground.
MORE INTO LESS In Winnetka, Ill.,
Larry and Tricia Krueger’s house has
areas defined with different ceiling
heights and materials to make a big
home feel cozy for a couple.
screened-in porch with an outdoor
bed. Recently, their grown daughter,
Avery, temporarily moved in with
her family, which includes an infant
son, Leo, and a baby nurse.
Software entrepreneurs Jeremy
and Jacquelyn Jaech decided to
downsize from a 14,000-squarefoot Seattle home that had “rooms
we didn’t see for months,” Ms.
Jaech says. Their current property
in the resort community of Manson, Wash., is still good-sized,
though: The 10,000-square-foot
compound, built for $3.6 million in
2008, sits on a 2½-acre, lakefront
lot that cost another $3.5 million.
The couple enlisted San
Anselmo, Calif.-based Wade Design
Architects to strike a balance be-
tween building for themselves and
for their guests. There are only
two bedrooms in the 4,800square-foot wood and stone main
house on the shore of Lake Chelan;
more guest rooms are in two
1,800-square-foot cottages and an
apartment above the garage.
“We kept the scale of the main
house, where Jeremy and Jacquelyn
live on an everyday basis, tighter,
so that they don’t have to walk by
lots of unused rooms,” says principal Luke Wade, noting that nearly
every one of the firm’s projects includes the tension between building
for few and for many.
The Jaechs, who don’t have children together and are enthusiastic
tennis players, entertain friends,
weekend visitors and the University
of Washington women’s tennis
team, which comes for an annual
retreat. Coaches stay in the guest
cottages, and students hang out in
the outdoor entertainment space,
complete with a pool, pizza oven
and fire feature.
When alone with their two Cavalier King Charles spaniels, Mr.
Jaech, 62, and Ms. Jaech, 44, close
off the cottages. They still use the
main home’s spacious kitchen and
dining area, but sit side by side at
the table and use only one of the
two dishwashers. For watching
movies, they retreat to a media
room off the kitchen.
“It doesn’t seem overcrowded
when we have guests, and it
doesn’t feel empty when it is just
the two of us,” says Ms. Jaech.
“We never see the unused space.”
FROM TOP: WYNN MYERS FOR THE WALL STREET JOURNAL (4); WIQAN ANG FOR THE WALL STREET JOURNAL (2); KATRINA WITTKAMP FOR THE WALL STREET JOURNAL (2)
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ON THE MOVE At Susan and Pete Bonora’s
property near Austin, Texas, walls move with the
number of guests. Outdoor space, above; casita,
below; dining room, left; the Bonoras with daughter Avery and grandson Leo, far left.
no
Continued from page M1
The flexible floor plans enable
older homeowners to live in big
homes that are still manageable for
day-to-day living.
The average size of the American home keeps swelling, and 44%
of baby boomers aged 53 to 72 live
in houses larger than 2,000 square
feet, according to online real-estate
firm Zillow. A July survey by sister
site Trulia found that in the 100
largest U.S. housing markets, 9 out
of 10 retirement-age baby boomers
and older Americans want to stay
in their homes. In some of those
markets, the survey found, baby
boomers’ homes have an average of
4.2 bedrooms and only 2.6 household members.
At times, builders and architects
caution, homeowners hang on to
more house than they can handle.
Even rarely used areas need furnishings, maintenance and cleaning, in addition to some heating or
cooling—all for a few days of use a
year. “Bigger homes aren’t always
better,” says Ralph McLaughlin,
Trulia’s chief economist. In a
Trulia survey released in March,
41% of households in homes over
3,200 square feet would prefer a
smaller home in case of a move.
The demand for bigger homes is
partly of a reflection the fact that
this generation of empty nesters is
often still working, putting off decisions about post-retirement living, says Mr. McLaughlin. Plus,
many older boomers want to reserve their role in the family and
ensure their homes remain the
principal gathering spot, even as
children bring family of their own.
“Our clients want to stay in their
homes until pulled out feet first,”
says David Pekel, president of an
eponymous construction and remodeling company in Wauwatosa,
Wis., and president-elect of the National Association of the Remodeling Industry. “If they moved out of
their homes, they wouldn’t be the
epicenter of family gatherings.”
When the youngest of their
daughters left home in February of
last year, the Kruegers decided to
redo their 6,800-square-foot
house, purchased for $667,000 in
1994. In the $2 million renovation,
architect Bill Scholtens, principal
of Elements Architectural Group in
nearby Oak Park, Ill., envisioned
what he calls “rooms within
rooms.”
For when the Kruegers eat
alone or with another couple, he
installed an intimate breakfast
area in the kitchen, and gave the
kitchen counter a wooden edge to
add warmth to casual meals. For a
slightly bigger group, he created a
dining area just outside the
kitchen. For times when the whole
clan comes together, he moved the
formal dining room to the front of
the house, and added a wet bar to
prevent the room from being orphaned the rest of the year.
To make a moderately sized den
feel bigger when the home fills up
with visitors, Mr. Scholtens installed floor-to-ceiling glass walls.
To make the open floorplan feel
smaller when the Kruegers are
home alone, he defined some areas
with different ceiling heights and
materials. “It feels like a smaller
house but it’s big,” says Mr. Krueger, managing director of Wanxiang America Real Estate Group, a
commercial real-estate investment
firm in Chicago.
On Lake Travis near Austin,
Texas, Susan Bonora, a 62-year-old
interior designer, and Pete Bonora,
a 65-year-old retired geologist,
built their five-bedroom home
with entertaining in mind. At their
6,000-square-foot property, constructed for $3.2 million in June
2016, walls can move to accommodate guests.
“We needed to find the proper
scale for the two of them, but they
also wanted to be able to have everybody over,” says Janet Hobbs,
the Bee Cave, Texas–based home
designer.
The couple had a seated dinner
for 45 on New Year’s Eve and a
party for 60 on this year’s Fourth of
July. For both events, glass doors in
the great room were opened to add
53 feet of outdoor-living space. For
smaller parties, the Bonoras close
off the kitchen with rolling barn
doors—which also keeps the caterer
out of sight.
When on their own, the Bonoras
barely use the great room. They
also don’t spend time in the upstairs bedrooms, where a digital
thermostat automatically adjusts
the temperature when the area is
unoccupied. Instead, the pair sits in
the breakfast area of their kitchen,
or retreats to a second-floor
ly
.
A ONE-SIZE-FITS-ALL KIND OF HOUSE
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