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The Wall Street Journal November 03 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 23516.26 À 81.25 0.3%
NASDAQ 6714.94 g 0.02%
STOXX 600 394.94 g 0.5%
10-YR. TREAS. À 9/32 , yield 2.347%
OIL $54.54 À $0.24
GOLD $1,274.90 À $0.80
Republicans propose collapsing seven tax brackets into four brackets, with new
rates and thresholds for where higher marginal tax rates kick in.
Unmarried Individuals
Business & Finance
CURRENT 2017
rump nominated Powell
to become the Fed’s 16th
chairman. The nominee is
viewed as likely to be a consensus-driven leader. A1, A7
T
PROPOSED 2018
CURRENT 2017
39.6%
39.6%
Over $418,400
Over $500,000
35%
PROPOSED 2018
35%
35%
Up to
$1 million
33%
$416,700
$416,700
28%
28%
$191,650
$233,350
25%
25%
25%
25%
Up to $200,000
$91,900
Venezuela’s leader said the
nation will seek a debt restructuring, raising the prospect of
a showdown with creditors. B1
Over
$1 million
$470,700
Up to $500,000
33%
39.6%
39.6%
Over $470,700
35%
$418,400
Apple delivered its best
quarterly growth in two years,
with strong sales in all of its
key products and a rebound
in the China market. B1
T-Mobile and Sprint are
working to salvage a potential merger, days after talks
appeared to be called off. B1
Married, Filing Jointly
Circle size = income threshold
The Justice Department
is preparing for a potential
lawsuit to block AT&T’s deal
for Time Warner if the sides
can’t reach an agreement. A1
Up to
$260,000
$153,100
15%
15%
$37,950
$75,900
12%
12%
Up to
$45,000
10%
Up to $9,325
Up to
$90,000
10%
Up to $18,650
BY RICHARD RUBIN
YEN 114.08
Heirs,SomeFamilies
AreWinnersinPlan
Corporate income-tax rates for selected countries
Key provisions
BY LAURA SAUNDERS
50%
u Deduction for state and local
income and sales taxes repealed
The Bank of England raised
its benchmark interest rate
to 0.5% from 0.25%, the first
increase in a decade. A8, B12
30
The heirs of wealthy people and business owners in
low-tax states are among
those most likely
ANALYSIS to benefit from
the tax overhaul
proposed Thursday by Republicans in the
House of Representatives.
Many families who have
children and few deductions
are also expected to benefit.
Who loses? Highly paid employees in high-tax states; future buyers of large homes or
second homes; high-earning
Shell said profit at the
energy giant nearly tripled
in the third quarter. B6
Global insurer AIG
swung to a $1.74 billion
third-quarter loss. B10
Alibaba’s profit more than
doubled as the firm mined
consumer data to get ads. B3
Discovery reported an
accelerating decline in its
channel subscribers. B5
World-Wide
House Republicans unveiled details of their taxcode overhaul. The plan
calls for cutting the corporate rate from 35% to 20%,
compressing individual
brackets and eventually repealing the estate tax. A1
Republicans cheered
the bill, though fault lines
quickly emerged over some
of its components. A4
The GOP proposal would
reduce or eliminate virtually
all of the tax incentives of
homeownership. A5
The Justice Department
has identified more than six
members of the Russian government involved in hacking
the DNC’s computers. A1
Senate Republicans signaled they are in no hurry to
pass legislation on legal protections for “Dreamers.” A3
An Interior Department
official urged Congress to
approve oil drilling in the
Arctic wildlife refuge. A3
The U.S. flew two bombers on a mission near North
Korea together with Japanese and South Korean jets,
angering Pyongyang. A9
A Spanish prosecutor
asked a court to issue an
arrest warrant for the Catalan secessionist leader
who fled to Belgium. A8
U.S.
France
Proposed rate 20%
0
2000
’02
’04
’06
’08
U.S. Mulls
Charges for
Russians in
DNC Hack
BY ARUNA VISWANATHA
AND DEL QUENTIN WILBER
The Justice Department has
identified more than six members of the Russian government
involved in hacking the Democratic National Committee’s
computers and swiping sensitive information that became
public during the 2016 presidential election, according to
people familiar with the investigation.
Prosecutors and agents have
assembled evidence to charge
the Russian officials and could
bring a case next year, these
people said. Discussions about
the case are in the early stages,
they said.
If filed, the case would provide the clearest picture yet of
the actors behind the DNC intrusion. U.S. intelligence agencies have attributed the attack
to Russian intelligence services,
but haven't provided detailed
information about how they
concluded those services were
responsible, or any details
about the individuals allegedly
involved.
The high-profile hack of the
DNC’s computers played a central role in the U.S. intelligence
community’s assessment in JanPlease see HACK page A2
TOMORROW
’12
’14
’16
u Alternative minimum tax repealed
THE WALL STREET JOURNAL.
BY NICK TIMIRAOS
AND DAVID HARRISON
WASHINGTON—There have
been two kinds of Federal Reserve chairmen in recent years:
commanding
personalities
such as Paul Volcker and Alan
Greenspan, and consensusdriven leaders such as Ben
Bernanke and Janet Yellen.
Jerome Powell, nominated
by President Donald Trump on
Thursday to become the Fed’s
16th chairman, is likely to fall
into the latter group, judging
by his nearly 40-year career in
government, law and banking.
In remarks at the White
House, Mr. Powell praised the
leadership of Mr. Bernanke and
Ms. Yellen, who he said had
moved “monetary policy toward greater transparency and
predictability.”
Continuity in monetary and
regulatory policy would be
welcome in the markets, which
Jerome Powell, after a nearly 40-year career in government, law
and banking, is President Trump’s pick to become Fed chairman.
don’t like uncertainty, and at
the Fed itself, one of the
world’s most powerful economic policy-making bodies. It
also could please Mr. Trump,
who has spoken approvingly of
record stock prices and declining unemployment.
Mr. Powell’s appointment
could also cause friction within
the Republican Party, where
many rank-and-file members
want to see the Fed roll back a
decade of central-bank activism sparked by the financial
crisis.
Victims in
New York’s
Terror Attack
Remembered
A cyclist stopped
Thursday at a
memorial for victims
of this week’s attack
on a bike path in
lower Manhattan.
Law-enforcement
officers face a
growing challenge of
preventing terrorist
attacks carried out
not with explosives
or firearms, but with
vehicles—a tactic
that has become
more widespread. A3
the innovators
issue
TOKYO—It’s 6 p.m. and the
music playing in the Tokyo
headquarters of home builder
Mitsui Home Co. suddenly
switches to the theme from
“Rocky.” As the familiar trumpet opening plays, typing and
conversations stop. The workers all rise at their desks.
“I will finish up writing
emails and go home at 6:20,”
Greg Ip: Choice for Fed
chairman is safe gamble..... A7
Bank of England raises key
interest rate............................... A8
BY BRENT KENDALL
AND DREW FITZGERALD
ANDRES KUDACKI/ASSOCIATED PRESS
i
i
Loud music, surprise calls signal day’s end; hiding in a show home
BY GEORGE NISHIYAMA
AND MEGUMI FUJIKAWA
In the weeks leading up to
the selection, Sen. Pat Toomey
(R., Pa.) said he thought the
Fed should “move in a different direction.”
The president opted against
offering the job to two candidates more popular with the
Republican establishment—former Fed governor Kevin Warsh
and Stanford University economist John Taylor—after advisers raised concerns that their
past support for higher interest rates could unsettle Wall
Street, according to two people
familiar with the deliberations.
“I would be surprised if [Mr.
Powell] walked away at the
end of his term with a huge
stamp of reshaping the Fed,”
says Charles Plosser, who as
Please see FED page A6
AT&T Faces
A New Test
In Pursuit of
Time Warner
i
WSJ.
MAGAZINE
Banks sidestep tax-plan
pitfall.............................................. A4
Proposal cuts incentives to
homeowners............................... A5
Trump Fed Pick: Pragmatic, Low-Key
Japan, Home of Overwork, Wants Employees to Stop
Newly released files
from the compound where
bin Laden was killed provide
new insight into al Qaeda’s
relationship with Iran. A9
>
’10
Note: Head of household filing status retained but not shown
Sources: House Ways and Means Committee and Organization for Economic Cooperation and
Development (tax changes); Organization for Economic Cooperation and Development (world rates)
House Democrats filed a
lawsuit seeking to force the
administration to release records from Trump’s signature
Washington, D.C., hotel. A3
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1
Technology............... B4
U.S. News............. A2-7
Weather.................. A10
World News....... A8-9
u Mortgage interest
deduction limited
Japan
u Personal exemptions repealed
U.K.
Germany
u Estate tax reduced, then
repealed in 2024
20
10
u Property tax deduction capped
home sellers; people who take
medical deductions; and future
alimony payers, among others.
The plan fills in crucial
blanks missing from earlier
proposals, such as brackets
and rates. The top rate would
remain 39.6%, although the
threshold rises to $1 million
for married couples from
$470,700 now.
The bottom rate would
Please see RATES page A5
DREW ANGERER/GETTY IMAGES
The Dow rebounded from
an early fall to close up 81.25
points at 23516.26, as investors weighed the tax plan. B11
40
tions individuals take for state
and local tax payments and
mortgage interest and the ones
businesses get for the interest
they pay on debt. The proposal
also repeals personal exemptions, which filers take based on
family size to reduce their taxable income.
That combination creates
winners and losers, and people
and businesses whose tax bills
might rise began mobilizing to
block or alter the bill.
Many House Republicans rallied around the plan, but it also
ran into immediate opposition
and skepticism, including wariness from some usual GOP allies. The National Federation of
Independent Business, the influPlease see TAXES page A4
WASHINGTON—House Republicans unveiled the details of
the biggest transformation of
the U.S. tax code in more than
30 years, calling for deep cuts
in business-tax rates and starting a race to pass the complex
legislation by year’s end.
The plan calls for chopping
the corporate tax rate to 20%
from 35%, compressing individual income-tax brackets, and
eventually repealing the estate
tax. The bill’s ambitions—along
with the slim Republican margins in the House and Senate—
could also be what stop it.
To partly offset that lost revenue from rate cuts, Republicans plan to curtail the deduc-
Mercer is resigning as
co-CEO of Renaissance. The
hedge-fund billionaire gained
attention outside Wall
Street for backing Trump. B10
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
EURO $1.1658
House GOP Readies for Tax Battle
What’s
News
CONTENTS
Business News.. B3,6
Crossword.............. A10
Heard on Street. B12
Life & Arts....... A10-11
Mansion.............. M1-12
Markets............. B11-12
HHHH $4.00
WSJ.com
FRIDAY, NOVEMBER 3, 2017 ~ VOL. CCLXX NO. 106
* * * * *
a woman declares.
“I will work on internship
admissions and then leave at
6:30,” a male colleague says.
Around the room, employees take turns in a formal
closing ceremony meant to cut
overtime and raise productivity. The company is hoping
that the up-tempo music will
encourage workers to “go into
higher gear” and get the job
done, said company spokesman Nobumasa Tanaka.
In a country where dedication to the job was once unquestioned dogma—Japan created its own word, karoshi,
for “death by overwork”—executives are now obsessed
with stopping workers from
working too long.
At Daiwa House, a rival to
Mitsui Home, the company installed software in workers’
computers so that when they
were logged on for too long,
Please see WORK page A6
WASHINGTON—AT&T Inc.’s
planned acquisition of Time
Warner Inc. faces an emerging
challenge as the Justice Department is laying the
groundwork for a potential
lawsuit challenging the $85
billion merger.
The department’s antitrust
division is preparing for litigation in case it decides to
sue to block the deal, these
people said. Simultaneously,
the department and the companies are discussing possible
settlement terms that would
lead to the deal winning government approval with conditions attached. The two sides,
however, aren’t close to an
agreement, the people said.
The outcome could go either way, and the timing of
any decision remains uncertain, the people said.
The ongoing review has
been the subject of intense political interest because Mr.
Trump, even as he touted a
pro-business agenda last year
Please see DEAL page A2
T-Mobile, Sprint revive
merger talks................................ B1
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Friday, November 3, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
BY WILLIAM MAULDIN
Nebraska cattle rancher
Craig Uden is taking President
Donald Trump at his word.
Mr. Trump’s threat to withdraw from the North American
Free Trade Agreement strikes
some as tough talk aimed at
winning concessions from Canada and Mexico. But the 56year-old Mr. Uden, who heads
the National Cattlemen’s Beef
Association, has decided to
freeze his own cow herd at
1,500 head.
A Nafta breakup and tariffs
that could follow, he said,
could curtail Mexico’s demand
for American beef, valued at
around $700 million a year—in
part because Mexican consumers like cuts, such as oxtail and
tripe, that Americans generally
pass up.
Mr. Uden’s caution underscores a new reality: Nobody with business interests
that span North American
borders can afford to ignore
the possibility of an end to the
23-year-old agreement, under
which $1 trillion in goods
flows across U.S. borders each
year.
The U.S., Canada and Mexico are set to resume Nafta renegotiations, instigated by Mr.
Trump, on Nov. 17 in Mexico
City with the goal of wrapping
up by March.
The most contentious issues
include the Trump administration’s proposals to add a “sunset provision” that would force
Nafta’s expiration in five years
unless all three countries act
to renew it, to weaken the
pact’s dispute-resolution system, and to require even
higher levels of North American or U.S.-specific content in
vehicles and car parts traded
duty-free in the bloc.
Should the U.S. fail to
achieve these goals, which
trade and business groups see
as extreme, the U.S. has said it
may withdraw from the treaty.
In recent weeks, as the
Trump administration’s efforts
to renegotiate Nafta have
grown contentious, concerns
of a withdrawal have clouded
the outlook for a range of
businesses, including Midwest
farms, Detroit auto makers,
vegetable importers and more.
The Trump administration
defends its approach by saying
the pact has hurt American
workers and that its proposals—which would weaken key
elements of Nafta—have wide
support from U.S. workers and
domestically focused businesses. Asked about the withdrawal warnings, Commerce
Secretary Wilbur Ross said in
New York last week that Mr.
Trump is “not a bluffer.”
Yet some businesses say it
is too early to change their
plans. Railway operator Kan-
BRYAN WOOLSTON/REUTERS
Trump’s Nafta Threat Jars Business Plans
A Ford plant in Louisville, Ky., above. Nafta’s collapse or reshaping could result in billions in auto tariffs.
sas City Southern, which is
heavily reliant on U.S. corn exports, is proceeding with efforts to diversify with construction of a new oil-products
terminal in Mexico.
Kansas City Southern Chief
Executive Patrick J. Ottensmeyer said his customers
aren’t ready to alter their
plans just yet, but he is warning investors that some freight
customers likely are rethinking
their Nafta-related investments.
“What about investment decisions that were thought
about and talked about behind
closed doors that were never
public? Have some of those
been delayed? My sense is
yes,” Mr. Ottensmeyer said.
Some businesses, after 23
years of investing in supply
chains predicated on Nafta’s
low tariffs, would have diffi-
Continued from Page One
uary that “Russian President
Vladimir Putin ordered an influence campaign in 2016 aimed at
the U.S. presidential election.”
Mr. Putin and the Russian government have denied meddling
in the U.S. election.
Thousands of the DNC’s
emails and other data, as well
as emails from the personal account of John Podesta, who
served as campaign chairman to
2016 Democratic presidential
nominee Hillary Clinton, were
made public by WikiLeaks last
year.
The pinpointing of particular
Russian military and intelligence hackers highlights the exhaustive nature of the government’s probe. It also suggests
the eagerness of some federal
prosecutors and Federal Bureau
of Investigation agents to file
charges against those responsible, even if the result is naming
the alleged perpetrators publicly and making it difficult for
them to travel, rather than incarcerating them. Arresting
Russian operatives is highly unlikely, people familiar with the
probe said.
People familiar with the investigation drew the parallel to
the Justice Department’s decision in March to charge two
Russian operatives and two others with hacking into Yahoo’s
computers starting in 2014 and
pilfering information about 500
million accounts, one of the
largest data breaches in U.S.
history. One of the defendants
in the Yahoo case, a Canadian
national, was arrested and has
DEAL
Continued from Page One
on the presidential-campaign
trail, said AT&T shouldn’t be
allowed to buy Time Warner
because it would give too
much power to one company.
In addition, the review is
being overseen by Mr. Trump’s
pick to lead the antitrust division, Makan Delrahim, who
was confirmed by the Senate
in September after Mr. Trump
nominated him in April.
Most outside observers
have believed the deal was
likely headed for government
approval. The recent developments aren’t necessarily an
indication the deal is in trouble, but they do suggest more
regulatory uncertainty for the
companies than many analysts
anticipated.
Shares of Time Warner fell
3.75% Thursday to $94.70.
AT&T’s shares were down
1.13% at $33.17 after spiking as
high as $33.98 immediately
after The Wall Street Journal
reported a lawsuit was being
considered.
“When the DOJ reviews any
transaction, it is common and
expected for both sides to
prepare for all possible scenarios,” an AT&T spokesman
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
HACK
Emails from John Podesta, who served as campaign chairman to
2016 Democratic presidential nominee Hillary Clinton, were hacked.
pleaded not guilty; the other
defendants are believed to be in
Russia.
Last December, the Democratic administration of thenPresident Barack Obama imposed sanctions on Russia’s
military-intelligence agency,
which uses the acronym GRU,
and Russia’s Federal Security
Service, the successor agency to
Russia’s KGB, in response to the
DNC and other hacks. It also
named several individuals, including one who was later
charged in the Yahoo case.
Federal prosecutors and federal agents working in Washington, Pittsburgh, San Francisco
and Philadelphia have been collaborating on the DNC probe.
The inquiry is being conducted
separately from Special Counsel
Robert Mueller’s investigation
of alleged Russian meddling in
the 2016 election and any possible collusion by President Donald Trump’s associates.
Mr. Trump, a Republican, has
said. “For over 40 years, vertical mergers like this one
have always been approved
because they benefit consumers without removing any
competitors from the market.
While we won’t comment on
our discussions with DOJ, we
see no reason in the law or
the facts why this transaction
should be an exception.”
A Time Warner spokesman
declined to comment.
AT&T executives have continued to say the deal is on
track to close by the end of
the year, with financing lined
up and all government authorities on board except for the
Justice Department.
A department spokesman
declined to comment.
It is common during major
government merger investigations for antitrust officials to
work on two tracks: One prepares for litigation, and another works toward a settlement allowing the merger. The
antitrust division in recent
years has placed renewed emphasis on being ready for a
lawsuit in case settlement
talks break down.
If the Justice Department
were to sue to block the deal,
that wouldn’t be the end of
the matter—unless the companies abandoned their plans.
The department would have to
denied that he or his campaign
colluded with Moscow.
Mr. Mueller’s investigation
resulted this week in moneylaundering and tax-related
charges against Paul Manafort,
former chairman of Mr.
Trump’s campaign, and Richard
Gates, Mr. Manafort’s business
associate who also worked on
the campaign.
George Papadopoulos, who
served as a foreign-policy adviser on Mr. Trump’s campaign,
pleaded guilty last month to lying to FBI agents about his
dealings with Russian go-betweens during the campaign.
Messrs. Manafort and Gates
pleaded not guilty.
A
Justice
Department
spokesman and an FBI spokeswoman declined to comment on
the identification of the Russian
government officials allegedly
behind the DNC hack. The Russian Embassy didn’t respond to
a request for comment.
Mr. Trump has cast doubts
Divergent
Share performance since the
deal was announced
25%
20
15
Time Warner
10
$94.70
s14%
5
0
–5
–10
AT&T
$33.17 t14%
–15
2016
2017
Source: FactSet
THE WALL STREET JOURNAL.
present its case to a judge and
prove the deal would likely
harm competition.
The department has spent
a year investigating whether
allowing AT&T to buy Time
Warner would hurt competition in the media and telecommunications businesses.
The deal would merge
AT&T’s communications infrastructure, including its cable
service and DirecTV, with
Time Warner’s media portfolio, including channels such as
CNN, TBS and HBO as well as
the Warner Bros. studios.
The company argues the
on Russia’s role in the hack. In a
series of tweets this past June,
the president called the idea
that Russia hacked the DNC a
“big Dem HOAX.” He added that
it was “a big Dem scam and excuse for losing the election!”
High-ranking U.S. intelligence and law-enforcement officials have consistently stood by
the intelligence community’s
January assessment.
In that document, the intelligence community said GRU,
“probably began cyber operations aimed at the U.S. election
by March 2016.” It said the GRU
had exfiltrated “large volumes
of data” from the DNC by May.
In a statement, the DNC said:
“It is irrefutable that Russia
hacked the DNC and interfered
in our election to help elect
President Trump. The Kremlin
must be held accountable for its
attack on our country.”
The Justice Department and
FBI investigation into the DNC
hack had been under way for
nearly a year, by prosecutors
and agents with cyber expertise, before Mr. Mueller was appointed in May. Rather than
take over the relatively technical cyber investigation, Mr.
Mueller and the Justice Department agreed that it would be
better for the original prosecutors and agents to retain that
aspect of the case, the people
familiar with the Justice Department-FBI probe said.
It is unclear if prosecutors
will hold back filing charges until Mr. Mueller completes his investigation or wait to identify
others who may have played a
role in the DNC hack. Investigators believe dozens of others
may have played a role in the
cyberattack, the people said.
deal would help consumers by
making film and TV more affordable. AT&T points to its
current moves to lower prices
for video content
TV
programmers
are
among those who voice concern about the deal, arguing
that AT&T’s reach—more than
90 million wireless customers
and 20 million satellite subscribers—if added to control
some of the most sought-after
programming, would greatly
disadvantage rival media.
Some consumer advocates argue that giving AT&T that
much control over both content and its distribution could
lead to higher prices and
fewer options for viewers.
Because he was only confirmed in September, Mr. Delrahim had been left on the
sidelines while other antitrust
staffers
scrutinized
the
AT&T—Time Warner transaction. Now he is involved in
the deliberations, people familiar with the matter said.
AT&T officials have met
with Justice Department officials in recent weeks, and the
department separately has
been talking to third parties
who are concerned about the
deal, such as some rival content providers, according to
people familiar with the discussions.
culty reshaping their operations should the U.S. withdraw.
Auto makers, the parts producers who supply them and
the dealers who sell their vehicles would bear the cost of $10
billion in tariffs should Nafta
collapse, or the Trump administration succeeds in inserting
new provisions to penalize vehicles with foreign content, according to auto-industry estimates.
Some recent moves among
car makers would mitigate
these risks. General Motors
Co., whose Arlington, Texas,
plant relies heavily on Mexican parts, in June announced
it would build a supplier park
near the main plant where it
assembles Cadillac Escalades,
Chevrolet Suburbans and
other large sport-utility vehicles.
In agriculture, Mexico is
looking to buy wheat from Argentina and limit dependence
on grain from U.S. Midwestern
states.
Meantime, U.S. produce importers who agree to sell avocados and tomatoes to U.S.
food-service companies up to
a year in advance are writing
new contingency clauses into
contracts that allow them to
avoid delivery if Nafta is altered or canceled, according to
Lance Jungmeyer, president of
the Fresh Produce Association
of the Americas.
“Everybody’s
watching
trade very, very closely,” said
Mr. Uden, the Nebraska
rancher. “If trade gets disrupted, there’s going to be a
drop in price, and everybody
liquidates their cows.”
—Dudley Althaus
in Mexico City
contributed to this article.
U.S. financial firms seek
Nafta data rule......................... B2
U.S. WATCH
CALIFORNIA
IRS
Utility Pressed on
Liability in Wildfires
Record Number
Renounce Citizenship
PG&E Corp. had few answers Thursday as analysts
pressed the utility to address its
potential liability in the wildfires
that killed more than 40 people
in California last month.
State fire officials and utility
regulators are investigating the
cause of the wildfires, including
whether some were sparked by
power lines maintained by PG&E
arm Pacific Gas & Electric Co.,
California’s largest investorowned utility.
Chief Executive Geisha Williams pushed back at analysts
seeking to pin down how the
utility would respond if its
equipment was found to have
caused some of the more than a
dozen fires, and what that might
mean for the company and its
investors.
—Erin Ailworth
The U.S. is on pace to see a
record number of Americans
shed their citizenship for the
fifth year in a row, as the Internal Revenue Service expands its
reach overseas.
More than 4,400 Americans
renounced their citizenship in
the first three quarters of 2017,
according to an IRS report.
The consecutive records follow a 2010 law that requires
foreign banks to report their U.S.
account holders to the IRS.
If Americans continue to forfeit their citizenship at their current pace, the total for 2017 will
set another one, surpassing the
5,411 expatriations in 2016 by
about 500, a 10% increase.
The U.S. taxes the assets and
income of its citizens, wherever
they are.
—Joe Palazzolo
RUSSIA PROBE
COLORADO
Manafort Trial
Could Start in April
Suspect Arrested in
Wal-Mart Shooting
Paul Manafort, President
Donald Trump’s former campaign
chairman, may go to trial as
early as April on money-laundering and conspiracy charges
stemming from accusations that
he and an associate failed to pay
taxes on millions of dollars they
earned overseas.
During a brief hearing Thursday at U.S. District Court in
Washington, Mr. Manafort’s lawyer, Kevin Downing, proposed an
April trial date, and Judge Amy
Jackson signaled the trial could
start around that time. She also
set a hearing for Monday to reevaluate the conditions under
which Mr. Manafort and business associate Richard Gates Jr.
were released pending trial.
During their arraignment
Monday, a magistrate judge set
unsecured bonds for Mr.
Manafort and Mr. Gates at $10
million and $5 million, respectively, and ordered them confined to home detention.
Mr. Downing and Shanlon
Wu, an attorney for Mr. Gates,
are seeking to loosen the restrictions.
The case against Messrs.
Manafort and Gates doesn’t
touch on the campaign itself. Instead, it alleges a wide-ranging
scheme, involving foreign companies and bank accounts in
countries including Cyprus and
the Seychelles, to use millions of
dollars in income from Ukraine in
the U.S. without reporting it.
Messrs. Gates and Manafort
have pleaded not guilty.
—Del Quentin Wilber
Police arrested a man in the
Wednesday evening shooting
that left three dead at a Colorado Wal-Mart.
Scott Ostrem, 47 years old,
allegedly walked into the Thornton, Colo., Wal-Mart and opened
fire with a handgun, killing two
men and one woman, police said
Mr. Ostrem is accused of
leaving the scene after the
shooting, setting off an overnight manhunt.
Police said they tracked him
down early Thursday in Thornton, just north of Denver.
Police don’t know what motivated the suspect to open fire
or whether he knew the victims.
—Zusha Elinson
CORRECTIONS AMPLIFICATIONS
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Friday, November 3, 2017 | A3
* *
U.S. NEWS
Low-cost and deadly
ISIS tactic employed
in New York attack is
difficult to prevent
used similar methods and left
scores dead.
“It’s a horrible situation.
We have this methodology
that is becoming more widespread and not a whole lot of
ways to defeat it,” said Mike
Sena, director of the Northern
California Regional Intelligence Center, a fusion center,
which identifies threats in the
region and shares information
with local law enforcement.
Law-enforcement experts
say the low-cost, high-impact
nature of such attacks make
them hard to foresee and
stave off.
Renting vehicles takes only
a driver’s license and a credit
card, and securing every public space where people are
walking is impossible, said Mr.
Sena, who is the president of
the national association for fusion centers.
“You can’t cordon off all the
walkways, the bike lanes, the
crosswalks,” he said.
Law-enforcement officials
try to stop these types of attacks by encouraging rental
agencies to report suspicious
behavior to police, he said.
False identification and documents or any overheard
threats can be tipoffs.
When outdoor festivities
are planned in the region, the
fusion center sends out alerts
to local police agencies, asking
if there are any reports of stolen heavy-duty vehicles that
could be used as weapons, Mr.
Sena said.
Predicting which individuals could be preparing to rent
a truck to carry out an attack
is also a major challenge for
law enforcement.
BY ZUSHA ELINSON
AND NICOLE HONG
The attack in New York
City on Tuesday afternoon
highlights the growing law-enforcement challenge of preventing terrorist attacks carried out not with explosives or
firearms, but with vehicles.
Sayfullo Saipov allegedly
drove a truck Tuesday afternoon into pedestrians and cyclists on a lower Manhattan
bike path, killing eight people.
Mr. Saipov “appears to have
followed almost exactly to a T
the instructions that ISIS has
put out on its social-media
channels,” said John Miller, the
New York Police Department’s
deputy commissioner for counterterrorism and intelligence.
Mr. Saipov appeared in a
courtroom in downtown Manhattan Wednesday after being
charged with one count of
providing material support to
a foreign terrorist organization and one count of violence
and destruction of motor vehicles. He didn’t enter a plea.
The November 2016 issue of
Rumiyah, an ISIS, or Islamic
State, propaganda magazine,
called vehicles one of the “safest and easiest weapons one
could employ” to carry out a
lethal attack because vehicles,
unlike knives and other weapons, arouse little suspicion.
Recent attacks in Barcelona;
London; and Nice, France, all
ANDRES KUDACKI/ASSOCIATED PRESS
Use of Trucks
By Terrorists
Vexes Police
Police stand guard at a lower Manhattan bike path where eight people were killed in a terrorist attack by a man driving a truck.
Tourist Spots Act
To Counter Threat
Tourist destinations such as
Las Vegas and New Orleans
have recently taken measures
to protect crowded pedestrian
areas, prompted in part by vehicle attacks around the world.
Work has begun to install
800 steel posts between the
street and sidewalks along the
Las Vegas Strip where masses
of people stroll between casi-
nos. The plan was approved
this summer after police officials there cited the attacks
around the world as well as the
danger of drunken drivers.
In New Orleans, the city has
sought this year to improve
safety for revelers along Bourbon Street with different types
of barriers that block cars.
“They are part of a larger
effort to keep New Orleans residents and visitors safe and are
designed to impede attacks
similar to the one that took
place Tuesday in New York
City,” said Gary Scheets, a police spokesman.
On Wednesday, New York
lawmakers called for the installation of traffic barriers—
including bollards, posts about
the size of fire hydrants—to
keep vehicles away from bike
paths and walkways. In May,
when a driver plowed into a
Times Square sidewalk, killing
a woman, the car was
stopped by a bollard in the
square. The posts likely helped
prevent more deaths, analysts
have said.
In New York alone, hundreds of individuals are likely
on the FBI’s radar for possible
terrorist activity, and many of
these investigations begin
with social-media postings
that support Islamic State or
other groups, according to
former law-enforcement officials.
Sharing pro-ISIS posts online is generally protected by
the First Amendment. Law enforcement is often forced to
monitor these postings from
afar, which requires signifi-
cant resources and can go on
for years before the individual
takes steps in real life to warrant criminal charges, counterterrorism experts said.
For many Islamic State
sympathizers, investigators
may introduce an informant
or undercover agent to help
prompt an arrest.
Some law-enforcement offices have tried to intervene
early on before an arrest is
warranted, especially with
children and teenagers who
support ISIS on social media.
The time it takes for someone to switch from social-media posts to actual violence
can be quick.
“You have this individual
who may be radicalizing by
consuming content themselves, and they may not have
direct orders from terrorists
overseas,” said Nate Snyder, a
former counterterrorism official at the Department of
Homeland Security.
“It’s very hard to detect if
an individual gets inspired
and suddenly decides to do a
DIY terrorist attack.”
—Rebecca Davis O’Brien
contributed to this article.
GOP Won’t Include ‘Dreamers’ in Spending Bill
BY LAURA MECKLER
AND BYRON TAU
But on Thursday, a group of
Senate Republicans met on the
issue with President Donald
Trump and some of them
emerged to say that they don’t
want to include the issue in
the spending bill, which lawmakers must pass to keep the
government running. Rather,
they suggested punting the
matter into next year, giving
lawmakers a tight time frame
ahead of the expiration of the
Obama-era program in March.
This group of young immigrants is now protected by the
Deferred Action for Childhood
Arrivals, or DACA, program,
which Mr. Trump acted in September to end, announcing a
six-month wind-down period.
“There was…consensus that
anyone on the other side of
the aisle who thinks that
WASHINGTON—With the
clock ticking and so-called
Dreamers in limbo, Senate Republicans signaled Thursday
they are in no hurry ahead of
a March deadline to pass legislation giving legal protections
to young immigrants brought
to the U.S. illegally as children.
Democrats and their allies
have been laying the groundwork to try to include these
protections in a year-end
spending bill, a moment when
their votes will be needed and
they will have power to make
demands. These must-pass
bills are often used as a vehicle to push through contentious legislation while minimizing political fallout.
they’re just going to codify
DACA in the year-end appropriations bill won’t be very
well received,” said Sen. Thom
Tillis (R., N.C.), one of seven
GOP senators in the meeting.
During the meeting to dis-
GOP senators
suggested legislation
on Dreamers could
wait until next year.
cuss the Dreamer issue, people
familiar with the discussion
say, the president pressed lawmakers on a different immigration issue: his opposition to
the Diversity Visa Lottery,
which awards visas to 50,000
people from countries that are
underrepresented in immigration to the U.S.
After the meeting, Mr.
Trump called on Congress to
“immediately terminate” the
program. “It’s a disaster for
our country,” he said.
In 2010, one of the winners
was a young man from Uzbekistan who authorities say went
on to commit a deadly terror
attack in New York this week.
A White House official said
Thursday that ending the lottery program has become a
“priority” for the president
and one legislative option
would be to pair ending it
with extending Dreamer legislation. Democrats have been
willing to jettison the program
before, as part of larger com-
prehensive bills, and passions
around the matter are much
cooler than other Trump immigration priorities, such as
his desire for a southern border wall.
The program enjoys strongest support from the Congressional Black Caucus, which
sees the lottery as one of the
few paths to the U.S. for many
people from African and Caribbean nations.
Democratic leaders have
been careful not to threaten a
government shutdown over
the Dreamers matter, but they
also have signaled that they
will insist on legislation protecting Dreamers this year,
rather than letting the matter
spill into 2018. Democratic
votes will be needed to pass
the spending bills necessary to
keep the government open,
which gives them leverage
even though they are in the
minority in both houses of
Congress.
“We’re going to do everything we can to pass the bill,”
Senate Minority Leader Chuck
Schumer (D., N.Y.) said Thursday when asked about the
Dream Act. He didn’t offer any
details about his strategy.
White House officials declined to comment on Mr.
Trump’s views about including
Dreamer legislation in the
year-end spending bill.
Immigrant advocates reacted with alarm at the suggestion that Republicans might
try to pass the spending bill
that doesn’t protect Dreamers,
seeing it as their only realistic
chance for action.
Interior Official Urges Arctic Drilling Democrats’ Suit Seeks
Trump Hotel Records
BY JIM CARLTON
BY BYRON TAU
JIM LO SCALZO/EPA/SHUTTERSTOCK
A Trump administration official urged Congress to approve drilling in Alaska’s Arctic National Wildlife Refuge,
saying Thursday that it would
boost the nation’s energy independence and help the Alaskan economy.
“If production is authorized
by Congress, the administration believes this will bolster
our nation’s energy independence and national security,
provide economic opportunity
for Alaskans and provide
much-needed revenue to both
the state of Alaska and federal
government,” said Greg Sheehan, acting director of the U.S.
Fish and Wildlife Service, part
of the Interior Department,
said in testimony on Capitol
Hill.
In an interview before his
testimony—the first by an administration official on the Arctic refuge—Mr. Sheehan said
the agency would take steps
such as restricting the use of
drilling pads and imposing seasonal-work shutdowns to limit
the environmental impact.
“Should Congress pass legislation to move forward with
oil exploration in the…area, we
will work to balance our nation’s real and ongoing energy
needs with our commitment to
preserving the beauty and diversity of this unique natural
area,” he said.
Alaska’s Arctic National Wildlife Refuge, with more than 19 million acres, is the largest in the U.S.
The interview came ahead
of his testimony before the
Senate Energy and Natural Resources Committee, a panel
led by Sen. Lisa Murkowski
(R., Alaska), a longtime proponent of opening the refuge to
oil and gas exploration.
Opponents of opening the
Arctic refuge to drilling said
the only way to protect the refuge fully is to keep it off limits
to drilling. Both the House and
Senate versions of the budget
bill contain pro-drilling provisions, as does President Donald
Trump’s fiscal plan.
The refuge was created by
Congress in 1980, under an act
that deferred a decision on potential oil and gas development
of the 1.5-million-acre area. Environmentalists said that land
on a coastal plain is important
to wildlife including migrating
birds, caribou and polar bears.
“Opening the Arctic refuge
coastal plain to oil leasing, exploration and production unacceptably threatens the Arctic refuge’s globally significant
wilderness and wildlife values,” said Lois Epstein, Arctic
program director for the Wilderness Society, a land-conservation group, in her testimony
before Congress.
Mr. Sheehan was appointed
his agency’s principal deputy
director in June after serving
as director of the Utah Division
of Wildlife Resources. In his interview with the Journal, he
said only Congress has the authority to open the area, which
encompasses 1.5 million of the
refuge’s 19.6 million acres. He
said oil and gas development in
the refuge “could have some
impact on the wildlife.”
With the refuge believed to
contain immense oil reserves,
administration officials and
many Republicans in Congress
said drilling there could generate badly needed new revenue
for both the U.S. and Alaska.
WASHINGTON—A group of
House Democrats filed a lawsuit seeking to force the
Trump administration to release records from President
Donald Trump’s signature
Washington, D.C., hotel.
The suit, based on a 1928
statute that enables any seven
members of the House Oversight Committee to seek documents from the executive
branch, was signed on Thursday by Democrats on the panel,
which is charged with investigating waste, fraud and abuse
in the federal government.
It seeks a wide range of
documents from the Trump
International Hotel located in
downtown Washington in the
Old Post Office building, a facility leased to Mr. Trump’s
company by the federal agency
that manages government
real-estate holdings. The documents sought include hotel
profit and expense statements
and correspondence within the
Trump administration about
the hotel.
Since Mr. Trump was inaugurated in January, his critics
have questioned the validity of
the lease, citing a provision in
it that appears to bar officeholders from profiting from a
government contract. The U.S.
General Services Administra-
tion has upheld the lease, ruling that Mr. Trump has sufficiently distanced himself from
his business interests.
In the new lawsuit, 17 House
Democrats cite the 1928 “Seven
Member Rule,” a law that enables any seven members of the
House Committee on Oversight
and Government Reform to request and receive documents
from the federal government.
Typically, document requests from Congress are negotiated between the executive branch and Congress.
Congress also can subpoena
records from the administration, but that usually requires
members of the majority party
to sign off.
Spokespersons for the
White House and the GSA
didn’t respond to a request to
comment.
Federal courts customarily
try to avoid intervening in political
disputes
between
branches of government, and
have been skeptical about
House members’ ability to sue
the federal government in their
individual capacity, preferring
litigation authorized by one or
both chambers of Congress.
The Trump International
Hotel generated about $18 million in revenue in the first
four months of 2017, according
to documents released by the
GSA in August.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A4 | Friday, November 3, 2017
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THE WALL STREET JOURNAL.
**
THE HOUSE GOP TAX BILL
Measuring the Measure
The House GOP tax bill cuts about $1.5 trillion in taxes over a decade.
Revenue estimates for key provisions for a 10-year period.
Cuts
Corporate rate cut
–$1.46 trillion
Individual bracket changes
–1.1
–921 billion
Standard deduction increase
Individual alternative minimum
tax repeal
–696
–640
Child and family credit expansion
–448
Special rate for pass-through business
–205
–172
Let U.S. companies earn future
foreign profit tax-free
Estate tax changes, repeal
Increases
Repeal personal exemptions
$1.6 trillion
Changes to various deductions
1.3
223 billion
ALEX WONG/GETTY IMAGES
One-time tax on foreign profits
172
Limits on corporate interest deduction
10% tax on high-profit
foreign subsidiaries
Repeal tax credit for research
into drugs for rare diseases
End of deduction on FDIC premiums
Rep. Paul Ryan said middle-class families ‘deserve a break,’ but some Republicans criticized the bill.
Source: House Ways and Means Committee
77
54
14
THE WALL STREET JOURNAL.
Measure Exposes GOP Fissures
BY KRISTINA PETERSON
AND SIOBHAN HUGHES
WASHINGTON—Republicans cheered the unveiling of
their long-awaited tax-overhaul bill, though fault lines
quickly emerged over some of
its components.
“This plan is for the middle-class families in this country who deserve a break,”
House Speaker Paul Ryan (R.,
Wis.) told reporters Thursday.
Yet the 400-page measure
also drew quick rebuffs from
some of the Republicans’ reliable allies outside of Congress,
including the Club for Growth
and the National Federation of
Independent Business, which
represents small businesses.
The divisions reflect some
of the trade-offs GOP leaders
had to make to lower the corporate tax rate and reduce income-tax rates for many
households. The fissures also
illustrate the Republicans’
struggle to accommodate President Donald Trump’s populist
leanings as they pursue the
longstanding conservative goal
of rewriting the tax code.
Epitomizing this battle was
GOP leaders’ decision to leave
the top individual income-tax
rate at 39.6%, though the income threshold for the rate
rose to $1 million for married
couples, from $480,050. Many
Republicans had hoped to lower
the top rate as well, arguing
that reducing it would boost
job creation and the economy.
“If you’re going to have tax
reform, it needs to be for everybody,” said Rep. Roger Williams (R., Texas),
David McIntosh, president of
the Club for Growth, a conservative advocacy group, praised
the bill overall, but criticized
the retention of the 39.6% rate,
saying it “effectively punishes
success and caves to the Demo-
crats’ class warfare rhetoric.”
Other Republicans said they
embraced the decision to leave
the wealthiest Americans paying more of certain taxes so
lawmakers could broaden relief for the middle class, which
they hope will insulate them
from some Democratic attacks.
‘If you’re going to
have tax reform,
it needs to be
for everybody.’
“It’s awfully hard to have
sympathy for someone making
seven figures,” said Rep. Bill
Huizenga (R., Mich.).
Republicans’ effort this year
to dismantle the Affordable
Care Act came up short in part
because Democrats painted
their legislation as tax breaks
for the most affluent at the expense of health-care coverage
for older and poorer Americans.
And Mr. Trump has made
clear that he wants to deliver a
middle-class tax cut, a message
that has shaped how GOP leaders have pitched their bill. They
also needed to find revenue to
offset the cost of big tax cuts in
order for the bill to clear procedural hurdles in the Senate.
Democrats
said
they
weren’t surprised by the GOP
tension over the issue.
“I imagine it is divisive,”
House Minority Whip Steny
Hoyer (D., Md.) said Thursday.
“I imagine the GOP would prefer to give everybody at the
very top a very large tax cut.”
Other GOP divides emerged
on issues critical to specific regions and industries that would
see their tax breaks curbed under the House proposal. One of
the biggest hurdles remains the
bill’s limits on deducting state
and local taxes, a blow especially to many wealthier residents of high-tax states including New York and New Jersey.
Rep. Dan Donovan (R., N.Y.)
said his delegation would
press to retain more of the
state and local tax deduction.
“We’re still in the process of
fighting for it,” he said.
Republicans also signaled
that other fights are likely to
intensify over many of the decisions GOP leaders made to
find enough money to pay for
the tax cuts. For instance, the
House GOP bill would curtail
the deduction that businesses
can take for interest paid on
debt. And many Republicans
said they would scrutinize the
bill’s rules on pass-through
businesses, which could leave
some companies with a lower
rate than others.
—Richard Rubin
contributed to this article.
Tax Credit for Electric Vehicles Would Disappear
BY MIKE SPECTOR
AND JOHN D. MCKINNON
The House Republican tax
plan would eliminate the electric vehicle’s tax credit, a proposal that would effectively
end thousands of dollars of
built-in discounts for buyers
and threaten to further damp
sales of battery-powered automobiles in the U.S. just as car
companies increase investments in them.
TAXES
Continued from Page One
ential lobbying group for small
businesses, said it couldn’t back
a bill that “leaves too many
small businesses behind.”
The U.S. Chamber of Commerce applauded the measure
but said “a lot of work remains
to be done.”
Manufacturers,
retailers,
wholesalers and conservatives
largely backed the plan, while
home builders and real-estate
agents prepared to fight proposals that reduce benefits for
homeownership. Democrats
panned the bill, and some GOP
lawmakers from high-tax states
said they were opposed.
“The special interests will
distort the facts, the lobbyists
will try to save their special
deals, and some in the media
will unfairly report on our efforts,” President Donald Trump
said in a statement.
“But my administration will
work tirelessly to make good on
our promise to the working
people who built our nation and
deliver historic tax cuts and reforms—the rocket fuel our
economy needs to soar higher
than ever before.”
The Tax Cuts and Jobs Act
calls for leaving the top individual tax rate at 39.6%, but pushing the income threshold for
that rate to $1 million for married couples from $480,050.
The House Ways and Means
Committee plans to consider
the bill next week with the aim
of turning it into law by Christmas and having most of it take
effect in 2018 and be reflected
on tax returns filed in 2019.
Republicans view the tax bill
as essential to their political futures and their best chance for
a legislative victory in Mr.
Trump’s first year in office.
Taken altogether it amounts to
The federal income-tax
credit, as high as $7,500, has
served as a lure to consumers
to buy electric or plug-in hybrid vehicles that are more expensive than their gasolinepowered counterparts. The
electric vehicles are already in
low demand because low gasoline prices are sending consumers flocking to fuel-thirsty
pickup trucks and sport-utility
vehicles.
Many analysts believe in-
centives are necessary until
well into the next decade as
engineers need much more
time to bring battery costs
more in line with conventional
gasoline engines. Car companies are investing billions of
dollars in electrification technologies in an effort to better
meet U.S. emissions standards
set through 2025.
A trade association representing the electric-vehicle industry expressed “strong dis-
appointment” with the House
GOP’s proposal in a letter to
Ways and Means Chairman
Kevin Brady (R., Texas).
“China and other nations
are seeking dominance in electrification,” the group said.
“Promoting investment in
electric drive helps ensure
that the U.S. does not lose its
[competitiveness] in a market
that we built.”
Tesla Inc. has outsize exposure to any tax-credit elimina-
native minimum tax, and eliminates many tax credits,
deductions, and exclusions,
such as breaks for moving expenses and employee achievement awards.
The Corporate Code
Republicans propose to chop the corporate tax rate and impose a one-time tax
on U.S. companies’ stockpiled foreign profits.
Top rates
Current
Other features
Business
interest
Current
Deductible as business
expense
Proposed
Up to 30% of cash flow
deductible. Special rules for real
estate and small business.
Capital
investments
Depreciable over time
with bonus in first year
Immediately deductible.
Expires after 5 years.
Proposed
39.6%
35%
25%
20%
Corporate
Pass-through
Domestic
Special deduction
manufacturing
just over $300 billion in tax reductions for individuals, a $172
billion estate tax cut and about
$1 trillion for businesses, a mix
Republicans say will improve an
archaic business tax code and
put money in the pockets of
households.
Yet, it faces a challenging
path. The tax bill already bears
the marks of political compromises, in addition to budgetary
contortions needed to avoid
creating larger and long-lasting
budget deficits.
Those moves were necessary
because a budget blueprint
agreed upon by the Senate and
the House constrains the tax
overhaul to a cost of $1.5 trillion over a decade. They need
to hit that target and avoid
larger budget deficits beyond
that to qualify for legislative
rules that allow them to pass a
bill by a simple majority in the
Senate without votes from
Democrats. They are also constrained by the party’s desire to
set the corporate tax rate at
20% and make it permanent, a
provision that by itself lowers
revenue by $1.46 trillion over a
Repealed
Foreign
income
US companies pay foreign No taxes on active foreign
profits but a 10% tax on high
taxes; defer US taxes.
profit foreign subsidiaries.
Repatriation
Companies pay up to 35%
to bring back foreign
profits; foreign tax credit
available.
One-time tax on existing profit
stockpiles regardless of whether
repatriated; 12% on cash; 5% on
illiquid assets.
THE WALL STREET JOURNAL.
Source: House Ways and Means Committee
decade.
Mr. Trump is hoping to win
over some Democrats in the
Senate, but lawmakers in the
opposition party largely criticized the plan Thursday.
Senate Minority Leader
Charles Schumer (D., N.Y.), said
Democrats will focus on issues
like the loss of deductions for
Democrats panned
the bill, and some
GOP lawmakers said
they were opposed.
state and local taxes, medical
expenses and student loan interest.
“The more the public sees
this bill, the less they will like
it. And I think that’s the reason
our Republican colleagues are
rushing this bill,” he said in an
interview.
Republican leaders began the
hard work of selling their plan,
starting with a meeting of law-
tion, as the company exclusively makes electric vehicles.
Chief Executive Elon Musk is
attempting to turn the luxury
auto maker into a more mainstream manufacturer with a
more affordable Model 3 car
starting at about $35,000 before the tax credit.
Losing the tax credit could
crimp those plans and hurt
sales of other Tesla vehicles. A
Tesla spokeswoman declined
to comment.
makers Thursday morning and
a White House event in the afternoon. They are soliciting reaction from business groups,
particularly on complicated and
novel changes to the taxation of
corporate foreign income and
pass-through businesses such
as partnerships. Those areas
contain huge potential problems and some Republicans
were already asking for changes
on Thursday.
They intend to work quickly.
The first crucible is the House
Ways and Means Committee,
which will begin considering
the plan Monday.
“We’ll be in listening mode
all throughout the code,” said
the bill’s author, Ways and
Means Chairman Kevin Brady
(R., Texas). “We are following
the Reagan example here. Go
bold. Listen. Make adjustments,
but keep the process going forward.”
The plan hits many Republican goals. It nearly doubles the
standard deduction, pushes
people away from itemizing
their deductions, lowers business tax rates, repeals the alter-
Income-Tax Rates
The bill collapses the current
seven individual tax brackets
into four: 12%, 25%, 35% and
39.6%. The new bottom tax rate
covers more income than the
current 10% and 15% brackets
do, meaning lower taxes for
many middle-income households.
Many upper-income households could face a higher marginal tax rate under the House
bill, which pushes some from a
33% bracket into 35%.
Political Land Mines
Meanwhile, there are political land mines scattered in the
plan. For example, the proposal
repeals an itemized deduction
for medical expenses, a crucial
provision to households with
extraordinary health-care costs.
The bill also limits the home
mortgage-interest deduction.
For new home purchases, interest would be deductible only on
loans up to $500,000, down
from $1 million in the current
tax structure. If enacted, that
rule would apply retroactively
to mortgages on home purchases starting Friday. Existing
loans, including refinancings,
would be grandfathered under
the $1 million limit.
Fewer Deductions
The bill eliminates other deductions, including the ability
of businesses to deduct certain
executive compensation above
$1 million, which they can now
take for performance-based pay.
Life insurers would lose some
tax breaks.
Banks
Sidestep
Tax-Plan
Pitfall
BY RACHEL LOUISE ENSIGN
AND TELIS DEMOS
Banks do pretty well under
the tax bill unveiled Thursday:
It puts them on track for big
tax cuts yet lets the firms avoid
some of the biggest potential
downsides of the overhaul.
At a 20% corporate tax rate,
banks stand to be among the
biggest winners from tax reform, according to S&P Global
Market Intelligence. The five
biggest diversified U.S. banks
alone might have had tax savings of $11.5 billion in 2016 at
that rate, the biggest sum for
any
sub-industry
group
tracked by S&P.
That is because those big
banks, such as Wells Fargo &
Co., typically pay higher effective tax rates than companies
that are much more profitable,
such as Apple Inc. Banks in
the S&P 500 pay an effective
25% rate, versus an 18% rate
for information technology
firms, the data provider said.
Aside from the overall corporate tax rate, bank investors
were also concerned with how
legislators would limit the deductibility of interest costs.
On the face of it, that could
upend the banking model
since financial firms are
highly leveraged, deploying
huge amounts of debt themselves to make loans or buy
instruments like bonds. Given
that, interest expense for
banks is akin to nonfinancial
companies’ cost of goods sold.
The legislation proposed by
the House Ways and Means
Committee appears to let
banks sidestep that issue,
though. It does so by limiting
the deductibility for companies that spend more money
on interest than they take in,
said Mark Roe, a professor at
Harvard Law School. Banks by
and large bring in far more in
interest than they pay out.
The upshot is that the
change shouldn’t affect banks
or result in them paying more
for debt that ranges from deposits to long-term bonds.
The bill’s clampdown on interest expense deductibility
also spares some of banks’ important borrowers—commercial
real-estate firms. They were excluded from the provision, a relief for banks and the companies themselves since they are
already under pressure as their
retail tenants get squeezed by
online competitors.
Tax-exempt bonds could no
longer be used to build professional sports stadiums. Businesses would no longer be able
to deduct entertainment expenses, though rules for business meals would remain.
Multinationals
Meanwhile, there are big
changes in store for multinational companies. U.S. companies would, generally, no longer
pay taxes on their active foreign
income, a move corporations
and Republicans say is important to stay competitive with
companies from lower tax countries. To prevent companies
from shifting profits abroad,
the bill creates a new 10% tax
on U.S. companies’ high-profit
foreign subsidiaries, calculated
on a global basis.
Many companies would face
a new limit on their interest deductions, which would be
capped at 30% of earnings before interest, taxes, depreciation and amortization, which is
a measure of cash flow.
Child-Tax Credit
For individuals, one potential
flashpoint is an expanded child
tax credit. The child credit,
along with the larger 12%
bracket, is crucial to limiting
the number of low-income and
middle-income families who see
tax increases due to the bill.
One reason they might still see
higher bills is because the bill
eliminates personal exemptions.
The House bill takes the
child credit from $1,000 to
$1,600.
The estate-tax exemption,
set for $5.6 million per person
and $11.2 million per married
couple, would double immediately. The tax would get repealed starting in 2024.
—Louise Radnofsky
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
* * * * * *
Friday, November 3, 2017 | A5
THE HOUSE GOP TAX BILL
Tax Plan Cuts Incentives to Homeowners
House Republicans unveiled
a tax bill that would reduce or
eliminate virtually all of the
tax incentives of homeownership, promising to reshape an
industry that accounts for
nearly one-sixth of the U.S.
economy and drives the biggest financial transaction
most Americans make in their
lifetimes.
By Laura Kusisto,
Christina Rexrode
and Chris Kirkham
The legislation would cut in
half the size of loans that qualify for deductions of mortgage
interest, to $500,000 from $1
million. At the same time, it
would nearly double the standard tax deduction, to $24,400
for married couples in 2018, ensuring that only a tiny sliver of
homeowners, primarily in the
priciest housing markets, will
continue to itemize their returns to capture the break.
The bill also appears to
eliminate the mortgage interest deduction for second
homes and further limits, for
top earners, a break on capital
gains from real-estate sales.
“It’s one step removed from
the worst-case scenario, and
that’s a small step,” said Isaac
Boltansky, director of policy research at Compass Point Research & Trading, a Washington-based investment bank. “It
is basically the sum of all [the
industry’s] realistic fears.”
Shares of home builders
and residential real-estate brokerages fell after the bill was
unveiled Thursday. The S&P
Homebuilders ETF ended the
day down 2.5%, while shares
of luxury builder Toll Brothers
Inc. lost about 6% and shares
of Realogy Holdings Corp., a
residential brokerage company, shed about 7%.
Mortgage lenders worried
the bill could hurt their business and weren’t clear on how
the loan refinancing market
might be affected. Housing-industry groups such as the National Association of Realtors
and National Association of
Home Builders came out in opposition to the bill.
“The corporations are getting a major tax cut, and it’s
getting paid for by the equity
in American homes,” said
Jerry Howard, chief executive
of the NAHB.
The legislation “threatens
home values and takes money
straight from the pockets of
homeowners,” said NAR President William E. Brown, a California Realtor. “Tax hikes and
falling home prices are a onetwo punch that homeowners
simply can’t afford.”
One silver lining for the
housing industry: the bill
would retain a deduction for
property taxes, albeit with an
annual cap of $10,000, which
is a blow to homeowners in
high-tax states like New York
and New Jersey. In all, roughly
3.7 million U.S. households
paid more than $10,000 a year
in property taxes in 2016, including 30.5% of owner-occupied homes in New Jersey, according to an analysis of
census data by the NAHB.
Even without the $500,000
cap, the mortgage interest deduction already was hobbled
by a plan to increase the standard deduction. The Tax Policy
Center, a nonpartisan group
headed by a former Obama administration tax official, previously estimated that the blueprint released earlier this fall
could reduce the share of taxpayers who claim the deduction to 4% from 21% currently.
Nationally just 2.8% of
mortgage loans have a balance
greater than $500,000, according to CoreLogic Inc. Of the 7.7
million
single-family-home
mortgages made last year,
548,000—or 7%—were over
$500,000, according to the
trade publication Inside Mort-
LUKE SHARRETT FOR THE WALL STREET JOURNAL
Builders, lenders and
brokers say it will
harm their businesses
and the middle class
The housing industry says it will push back against provisions of the tax plan that could harm home sales and the mortgage business.
gage Finance.
Mr. Howard of the NAHB
said the tax overhaul could
cause a housing recession because of a potential drop in
home values. States with high
housing costs, including California, where more than a
third of homes are valued
above $500,000, would be particularly hard hit, he said.
“Republicans have always
claimed that they don’t want
to pick winners and losers in
the economy,” he said. “They
are clearly picking large corporations over small businesses, and they are clearly
picking wealthy Americans
over the middle class.”
To be sure, the $500,000 cap
on the mortgage interest deduction would apply only to loans
made after Nov. 2, which pro-
tects existing homeowners. But
experts said that is likely to exacerbate the current stagnation
in the housing market.
Homeowners in high-cost
cities like New York, Boston,
Los Angeles, San Francisco
and parts of Miami are less
likely to trade up to larger,
more-expensive homes if they
know that means losing the
protection on the mortgage interest deduction, which in turn
makes it difficult for younger
buyers to enter the market.
Mortgage lenders, meanwhile, worried the tax bill
could weaken their businesses
by taking away some of the incentives of homeownership.
The bill also could have an
impact on the refinancing market. Lenders said it appeared
that the lower, $500,000 de-
duction would also apply when
existing mortgages were refinanced, which could discourage borrowers from refinancing even if they have a
relatively high interest rate.
Some lenders said the bill
also appeared to curb the tax
benefits of cash-out refinances
by eliminating the deductibility of the portion of the mortgage that exceeds the value of
the debt being rolled over.
For high-income households, the bill phases out a
rule in existing tax law that
excludes the first $250,000 in
profits from a home sale, or
$500,000 for a married couple, from capital-gains taxes.
The change would affect home
sellers with incomes exceeding
$250,000 for individuals or
$500,000 for married couples.
High-Dollar Homes
Metro areas with the most
homes valued over $500,000
and the percent of homes over
that amount:
San Jose, Calif.
94%
81
San Francisco
72
Los Angeles
63
San Diego
45
Seattle
Boston
41
New York
37
Washington
33
Sacramento, Calif.
26
Denver
25
Source: Zillow
THE WALL STREET JOURNAL.
Business Splits as GOP Proposal Targets Deductions
BETH J. HARPAZ/ASSOCIATED PRESS
BY SHARON NUNN
Industry groups for small businesses argue that the pass-through
rules for lower rates were written too narrowly to help them.
RATES
Continued from Page One
move up to 12% from 10%.
The proposals outlined in
the current bill could change
significantly during the legislative process, but here is a
rundown of changes that explains why certain groups
would—and wouldn’t—benefit.
Many owners of partnerships, limited-liability companies and S Corporations—who
currently pay tax on income at
the owner’s personal rate—
would get a tax cut as a result
of the Republican plan. The top
tax rate on a portion of that income, known as “pass-through
income,” would drop to 25%
from 39.6%.
The very wealthy get a tax
break on their estates. The bill
would double an estate-tax exemption to $10 million from $5
million per person, plus inflation adjustments. This change
wouldn’t take effect until Jan.
1, 2018.
Roberton Williams, an economist with the Tax Policy Center, estimates that the number
of taxable estates could fall
from about 5,000 a year to
fewer than 2,000. The bill also
ends the estate tax completely,
starting in 2024.
Residents of some states
are hurt by the loss of deduc-
tions. The plan eliminates virtually all itemized deductions
other than for mortgage interest, some property taxes, and
charitable gifts. It also eliminates other write-offs, such as
for moving expenses and alimony for divorce decrees after 2017.
The loss of the deduction
for state and local income or
sales taxes would hit hardest
in the six states that account
for half the value of these deductions: California, New York,
New Jersey, Maryland, Massachusetts and Illinois, according
to the Tax Foundation.
The deduction for property
taxes would be capped at
$10,000. Six states also get
more than half the value of
this deduction: California, New
York, New Jersey, Texas, Illinois and Florida, according to
the Tax Foundation.
The deduction for medical
expenses would also be repealed. Medical-expense writeoffs are currently allowed only
if they exceed 10% of annual
income, so it is most useful to
taxpayers with large unreimbursed costs—such as for a
nursing home or homehealth aides.
Home buyers and sellers
face new restrictions. Under
current law, taxpayers can deduct interest on up to $1 million mortgage debt for a first
and second home.
The House Republican taxreform proposal divided the
business community, with
small business, housing advocates and higher education lining up against the plan while
manufacturing and chief executives came out in favor.
The fault lines ran in part
along deductions that party
leaders proposed to take away
to pay for the tax cuts. By
raising the standard deduction and reducing loan limits
for claiming mortgage-interest deductions, for example,
the bill reduces the incentive
of households to borrow and
buy homes.
“The bill eviscerates existing housing tax benefits by
drastically reducing the number of homeowners who can
take advantage of mortgageinterest and property-tax inFor mortgages taken out after Nov. 2, other than refinancings, interest would only be deductible on $500,000 of debt,
and only for a first home. The
$1 million limit would continue
to apply to existing mortgages.
The bill would also restrict
an exemption useful to many
home sellers. Under current
law, sellers who have lived in a
home for two of the last five
years don’t owe capital-gains
tax on $250,000 of profit if
they are single or $500,000 for
married couples. For example,
if a married couple buys a
home for $200,000 and sells it
for $500,000, the $300,000
gain isn’t taxable.
The plan requires sellers to
live in a home for five of the
previous eight years to get this
break. It would also limit the exemption for higher-earning
home sellers, reducing it by one
dollar for every dollar that a
couple’s
income
exceeds
$500,000 ($250,000 for singles).
Families with few deductions could be in better
shape. The “standard” deduction for filers who don’t break
out their deductions would
roughly double, to $12,200 for
single filers and $24,400 for
married couples in 2018.
But the exemption of about
$4,000 that every person gets
under the current law would
be repealed. The loss of the
personal exemption would be a
centives,” said Granger MacDonald, chairman of the
National Association of Home
Builders.
Realtor and real-estate
groups also lined up against
the bill because it could leave
people living in more-expensive areas paying more for
new homes.
Other tax benefits currently on the chopping block,
including renewable energy
credits, drew sharp criticism.
The American Wind Energy
Association denounced the
proposal because it takes
away financial incentives consumers have to use renewable-energy products.
Another, student-loan interest deductions, was resisted by the Association of
American Universities. “The
legislation, as currently proposed, will make higher education less affordable and less
accessible to middle- and lowincome Americans,” said
Mary Sue Coleman, Association of American Universities
president.
New rules for taxation of
pass-through businesses, such
as S corporations and partnerships, many of which are
smaller enterprises, also faced
opposition from groups that
traditionally have tended to
support Republican efforts to
push down tax rates.
The National Federation of
Independent Business, along
with other industry groups
composed of smaller enterprises, argued the passthrough rules for lower rates
were written too narrowly to
help many small businesses.
“This is a pretty serious
problem for the Republican
leadership in Congress—to
face immediate blowback from
those who are traditionally
supportive of Republican tax
plans,” said Vanessa Williamson, a Brookings Institution
tax-policy expert.
Despite widespread disagreement over the deductions and other issues, the
plan to lower the corporate
tax rate was applauded widely
among manufacturers and the
country’s largest businesses,
many of which could see their
tax bills shrink.
3M, the National Association of Manufacturers and the
Business Roundtable, an association of chief executives, are
among those who came out in
support of the bill first.
“Today’s release of tax-reform legislation demonstrates
Congress’s commitment to
boosting American jobs, American wages and American competitiveness,” said Mark A.
Weinberger, a chair on the
Business Roundtable.
Education Benefits
Face a Revamping
The House Republicans’ tax
plan would affect benefits for
Americans who enroll in higher
education, boosting a popular
tax break, eliminating two others and repealing a deduction
for student-loan interest.
The plan also calls for taxing large endowments of private universities, which have
faced criticism in recent years
after a run-up in tuition.
It wasn’t clear how the GOP
plan would affect students on
an individual basis. Overall, the
plan calls for about $65 billion
less in tax benefits for postsecondary students and borrowers
over the next decade, according
to the congressional Joint Com-
mittee on Taxation. But many
of those taxpayers would benefit from broader provisions of
the plan, including a near-doubling of the individual standard
deduction.
The tax plan would increase
aid available under the American Opportunity Tax Credit, or
AOTC, which helps defray such
higher-education costs as tuition, fees and course materials.
The plan would eliminate two
other credits for students, the
Hope Scholarship Credit and the
Lifetime Learning Credit, that
cover similar expenses.
The biggest effect would
likely be less aid for graduate
students, said Jason Delisle of
the American Enterprise Institute, a conservative think tank.
Grad students are the most
likely to use the Lifetime Learning Credit, which provides up to
$2,000 a year.
The plan would also mean
no more deducting from taxable
income the interest paid on student loans. Currently, borrowers
with a modified gross income of
$65,000, or $135,000 for couples, can deduct up to $2,500 a
year in student-loan interest.
The GOP plan also wouldn’t
renew a recently expired provision that allows taxpayers to
deduct up to $4,000 a year in
tuition and related expenses if
they earn less than $65,000 in
adjusted gross income. And it
would repeal certain workplace
benefits for higher education.
A 1.4% excise tax on net investment income would be applied to private colleges or universities with at least 500
students and assets of at least
$100,000 per full-time student.
—Josh Mitchell
blow, but expanded credits
could turn some losers into
winners. The credit for children under 17 would increase
from $1,000 to $1,600 for
many. And a “family flexibility
credit” of $300 for each family
member who isn’t a child
would be in effect until 2023.
Some owners of partnerships, limited-liability companies, S corporations, and sole
proprietorships, stand to benefit under the new plan. Such
entities currently bypass corporate taxes and pay tax on income at the owner’s personal
rate, which is why they are
called “pass-throughs.”
These pass-through entities
have surged in popularity in
recent decades and now account for more than 40% of all
business income. They include
some large private companies
as well as smaller ones like car
dealerships, manufacturers,
and professional-service firms.
The top tax rate on a portion of pass-through income—
typically 30%—would drop
from 39.6% to 25%. That won’t
help business owners earning
less than $200,000 (singles) or
$260,000 (married couples).
But it would reduce the effective top tax rate for many passthrough owners earning more.
“Service” providers such as
doctors, lawyers or architects
are generally excluded from
getting the lower rate.
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A6 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
* ***
CHANGE AT THE FED
Continued from Page One
president of the Federal Reserve Bank of Philadelphia until 2015 worked closely with
Mr. Powell. “He’s not likely to
lead Federal Reserve reform
and innovation on monetary
policy, but that does not mean
he won’t be a good chair.”
Unlike Ms. Yellen and Mr.
Bernanke, Mr. Powell doesn’t
hold a degree in economics—
which would make him the
first chairman since the late
1970s without such a credential. Although he has worked
as an investor, lawyer and
bank regulator, he has no experience leading a large organization.
As a result, he might be
more likely to rely on Fed
economists. He also might be
less dug in and more flexible
than Ph.D.s on some intense
economics debates, such as
whether low unemployment is
a precursor to rising inflation.
Mr. Powell, who is known as
Jay, declined to comment for
this article.
The Fed is no simple bureaucracy. It has a seven-member board, 12 regional banks, a
secretive decision-making process and 2,700 employees involved in interest-rate decisions, bank regulation and
managing the nation’s currency circulation. It also serves
as the Treasury’s fiscal agent
in managing the nation’s debt.
It is in the process of raising short-term interest rates
from near-zero levels and of
gradually winding down a $4.2
trillion portfolio of mortgage
and Treasury securities built
up during and after the financial crisis. Mr. Powell was part
of a group in 2013 that pressed
Mr. Bernanke to wind down
the bond-purchase programs,
although he has never dissented in 44 meetings on the
Fed board.
Bond phase out
Mr. Powell’s most notable
mark on monetary policy at
the Fed was his involvement in
bond-buying phase out. Worried that investors believed the
programs would continue indefinitely, he joined with two
other Fed governors, Betsy
Duke and Jeremy Stein, to persuade Mr. Bernanke to scale
the program back. The effort
was typical of Mr. Powell’s
style—conducted almost entirely behind the scenes and
with little fanfare.
The initial effort was rocky.
Bond investors grew frightened, sparking a selloff known
in markets as the “taper tantrum.” Mr. Powell later conceded his concerns had been
overblown when he declared
the bond-buying programs a
success, and he has said the
Fed should return to such
bond-buying if needed to fight
future crises.
Mr. Powell’s views on economic and monetary policy
sync up with Ms. Yellen and
Mr. Bernanke. He has supported a slightly lighter touch
on financial regulation but
hasn’t backed wholesale efforts
Federal Reserve governor Jerome Powell, a lawyer, would be the first Fed chief in three decades without a Ph.D. in economics if confirmed
by the Senate. Here’s a look at how his career and academic history compare with previous Fed chairmen.
Jerome
Powell
Janet
Yellen
Ben
Bernanke
Alan
Greenspan
Paul
Volcker
G. William
Miller
Arthur
Burns
(nominee)
(2014-18)
(2006-14)
(1987-2006)
(1979-87)
(1978-79)
(1970-78)
William
McChesney
Martin Jr.
Thomas
McCabe
(1948-51)
(1951-70)
Has a Ph.D.
Has an economics degree
Prior career(s)
Government
Corporate
Academic
Sources: Federal Reserve History; Federal Reserve; staff reports; Photos: Bloomberg News; Reuters; Getty Images (4); Associated Press (2); Zuma Press
U.S. FEDERAL RESERVE/REUTERS (LEFT); PRINCETON UNIVERSITY
FED
In a closed-door meeting
with House Republicans in July
2011, he challenged his own
party over its standoff with
President Barack Obama about
authorizing an increase in the
national-debt ceiling. He
warned Republican lawmakers
about the harm that would fall
on retirees, veterans and other
Americans if Congress didn’t
authorize an increase in government borrowing, according
to two people who attended.
Obama Treasury Secretary
Timothy Geithner heard about
his take-your-medicine stand
and asked colleagues if Mr.
Powell might solve another
problem they were having, according to several people involved in the deliberations.
The administration had been
unable to get Senate Republicans to confirm its pick for a
vacancy on the Fed’s sevenmember board of governors,
and officials were struggling to
come up with names of a Republican who might help break
the impasse.
Impressed after their meetings with Mr. Powell, officials
in the White House recommended his nomination for the
job. The Senate confirmed his
nomination in 2012, and he
was reappointed two years
later.
Many Republicans weren’t
thrilled, with 20 voting against
him in 2012 and 23 voting
against him in 2014.
Some GOP lawmakers have
been ruffled by Mr. Powell’s
unwillingness to publicly criticize the Fed’s regulatory
agenda, which included implementing substantial provisions
of the 2010 Dodd-Frank Act.
That reluctance “just left
some people flat,” says Rep.
French Hill (R., Ark.), who remains friends with Mr. Powell
after they worked together in
the Bush administration during
the early 1990s.
Mr. Hill says he can understand why some colleagues
wish Mr. Powell had been more
outspoken, but adds it isn’t Mr.
Powell’s style to air his concerns publicly. “It’s not fair to
assume what Jay Powell said
or didn’t say in private,” he
says. “He kept those views to
himself.”
One person who has worked
with several Fed officials in recent years says he often heard
about petty personal rivalries
or feuds between board members, but these people never
had a bad word for Mr. Powell.
“He is remarkably undogmatic,” says Jeremy Stein, a
Harvard University economics
professor, Democrat and former Fed governor whose office
was adjacent to Mr. Powell’s.
“He listens more than he
talks.”
Mr. Powell has held several
different roles on a board that
has been plagued with vacancies in several years. He
earned respect from colleagues
for tackling unheralded operational tasks and technical issues, including managing payment-processing systems. He
also boosted morale this summer when he oversaw the implementation of a relaxed summer dress code.
—Harriet Torry
contributed to this article.
Leading the Fed
to dismantle overhauls implemented following the 2008 financial crisis. In testimony before lawmakers this summer,
he said those rules made the
financial system “substantially
stronger and more stable.”
“Jay is certainly not going
to change course in any radical
way, but he’s very smart. He
will react to whatever shifts
are out there,” says Glenn Hubbard, dean of the Columbia
Business School and an occasional adviser to Republican
presidential candidates, who
has known Mr. Powell for 25
years.
A Washington native, Mr.
Powell, 64 years old, grew up
the second of six children in
suburban Chevy Chase, Md.,
where he still lives. His father
was a lawyer; his mother
worked part time for the Republican National Committee.
Like his father, he attended
the Georgetown Preparatory
School, a Jesuit high school.
His parents were active in civic
and charitable causes, many
centered around their church.
Mr. Powell also has served on
the boards of educational and
environmental groups.
Matthew McCormick, an
economist who has worked for
several federal agencies, recalls seeing Mr. Powell last
year carrying a car seat and
luggage for someone else’s
family trying to make a tight
THE WALL STREET JOURNAL.
Janet Yellen, left, with Mr.
Powell at his 2014 swearing in
to the Fed’s board. Mr. Powell,
above, in 1975, the year he
graduated from Princeton.
connection at Reagan National
Airport in Arlington, Va.
When a business-school student sought him out several
years ago for career advice,
Mr. Powell offered his philosophy on getting ahead: Keep
your head down and work
hard, according to the student,
Sean Gillispie, today a software
product director in the Washington area. Mr. Powell told
him he would be surprised
“how many otherwise competent people self-sabotage with
poor behavior,” Mr. Gillispie
recalls.
Mr. Powell has a somewhat
conventional Washington résumé. He went to Princeton
University and Georgetown
Law School. He worked for
several years as a lawyer in
New York before joining investment bank Dillon, Read &
Co. In 1990, he returned to
Washington to become assistant secretary for domestic finance in President George H.W.
Bush’s Treasury Department,
following the bank’s former
chairman, Nicholas Brady, who
was Treasury secretary. He
later was promoted to undersecretary for domestic finance,
charged with untangling a
wave of bank failures.
One Sunday morning in January 1991, Mr. Powell joined
other regulators in a conference room to hash out how to
deal with the collapse of the
Bank of New England, at the
time one of the region’s largest
banks. To prevent a bank run,
the group decided to guarantee
all deposits, no matter how
large they were, Mr. Powell recalled in a 2013 speech.
Later that year, Mr. Powell
helmed the government’s response to the Treasury auction
bid-rigging scandal by Salomon Brothers, a major investment bank. Mr. Powell ironed
out an agreement that im-
His most notable
mark on policy was
his role in bondbuying phase out.
posed severe penalties against
the bank, which had admitted
making unauthorized bids,
without forcing it into bankruptcy, and arranged for investor Warren Buffett to become
the firm’s chairman.
“It was a very ticklish,
tricky thing, and it was exceptionally well handled at the
end,” says John Dugan, who
served under Mr. Powell at
Treasury.
The episodes of the early
1990s, which showed Mr. Powell to be relatively pragmatic,
shaped his regulatory world-
view, says Mr. Dugan. “He understands there’s a role for
regulation, and he’s not at one
extreme or the other,” says Mr.
Dugan, who was U.S. comptroller of the currency from 2005
to 2010.
Lucrative work
After Mr. Bush left office,
Mr. Powell returned to banking
in New York. In 1997, he moved
back to Washington and joined
the Carlyle Group, a privateequity investment firm, where
he founded and led the firm’s
industrial group within its U.S.
buyout fund. It was lucrative
work. In financial disclosures
earlier this year, Mr. Powell,
who drives a Tesla, reported
assets worth between $19.7
million and $55 million.
After nearly two decades in
the private sector, colleagues
say, Mr. Powell was eager to
return to public service but
wasn’t sure how or where to
make his mark. He went to
work at the centrist Bipartisan
Policy Center, where he didn’t
draw a salary.
“This was getting his feet
back into the water and figuring out where he wanted to get
engaged,” says Shai Akabas, an
economist at the center who
worked closely with Mr. Powell.
He landed at the Fed almost
by accident.
WORK
Continued from Page One
they saw a picture of the CEO
warning them to cut it out.
After that, the software locked
the computer.
Despite a 9 p.m. curfew,
Daiwa House found diligent
scofflaws hanging around,
said Moritaka Nohmura, a
company executive.
Some stayed in the office
and didn’t answer calls to the
switchboard number, hoping
to avoid detection. Others hid
out and worked in the model
houses built to show to customers.
Managers initiated “Operation SC” for “surprise call.”
They called the direct office
numbers of employees and the
model homes, ordering whoever answered to leave.
Japan is turning into a laboratory for an experiment into
whether a nation can get more
output with fewer people
working fewer hours. Up until
now, its legendary work ethic
hasn’t helped the economy
much. Japan barely grew for
most of the past quarter-century, and the average worker
is only two-thirds as productive as the average American,
a gap that has stayed persistently wide.
Just as important, the sup-
ply of people willing and able
to work until they drop is drying up. With its population
shrinking, Japan has had to
turn more to mothers of
young children, the elderly
and some foreigners to fill labor gaps.
“There’s already a shortage
of workers,” said Mr. Nohmura, the Daiwa House executive. “The survival of our company is at stake.”
Prime Minister Shinzo Abe
has made “work-style reform”
a pillar of his ruling party’s
platform. He says companies
need to reorganize their workplaces so employees can be
more productive during the
day and go home at night. He
is trying to boost day-care
slots by 500,000 by the end of
this fiscal year to get more
women working. Already the
growing number of working
women has helped the economy reach its longest growth
streak in more than a decade.
The direction is clear. But
companies are finding it takes
a lot of hard work to prevent
hard work. Still widespread is
the idea embedded in a popular TV commercial for an energy drink from the late
1980s: “Can you fight 24
hours, Japanese businessmen?”
Takaaki Nishii, the chief
executive of Ajinomoto Co.,
the company that invented
SHIHO FUKADA FOR THE WALL STREET JOURNAL
FROM PAGE ONE
Tomonori Tsukahara, a Mitsui Home employee, and his wife, Haruna, have dinner.
monosodium glutamate in
1908, often found himself sitting through three-hour
meetings where some 80
managers would gather to
hear each other deliver
scripted remarks.
“There are a lot of meaningless meetings,” he said.
“Meetings should be where
discussions are held to make
decisions, not just to listen to
people reading out reports.”
The company reduced the
standard workday by 20 minutes, to seven hours and 15
minutes, and told staff to go
home at 4:30 p.m. “Performance hasn’t fallen,” says Mr.
Nishii.
Yuusuke Suzuki, a 40-yearold Ajinomoto salesman, says
he now has more time to look
after his two boys. “I used to
eat dinner at home only a day
or two during week, and the
rest alone or with clients. But
that has completely reversed.”
One benefit, Mr. Nishii
says, is keeping more women
at the company. He used to
think the company’s programs
for maternity leave and reduced hours for working
mothers were enough. However, he says, “many women
said they would rather resign
than put additional burden on
their colleagues by leaving
early. So that’s why we decided to have everyone leave
early.”
At Mitsui Home, the Rocky
theme at 6 p.m. is just part of
an all-day efficiency push. The
company puts on different
tunes at 9 a.m., noon and 3
p.m. “So they will know that,
for instance, they have another three hours left when
they hear the music at 3
p.m.,” said Makoto Machiyama, a manager in the personnel department.
One employee in that department, Tomonori Tsukahara, 32, says he used to work
until 9 p.m. or 10 p.m. but
now tries to leave shortly after the Rocky music so he can
help his wife, who just had
their first baby.
“When the baby gets fussy,
he holds her for me and also
helps me bathe her,” said his
wife, Haruna, describing behavior that would have been
alien to many a corporate
warrior of previous generations.
Fixing Japan’s problem in
the workplace might be disrupting its family life, especially when husbands come
home early. “My friends say
they don’t need their husbands at home because they
hardly do any housework,”
says Megumi Kitagaito, a
homemaker with two boys.
Her husband, Keiichi Kitagaito, a real-estate businessman, doesn’t disagree. “I
know that for women, having
husbands at home is bothersome,” he says. He is already
working long hours and he
won’t change. “I cannot live
the way Abe expects,” Mr.
Kitagaito said.
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | A7
* * * *
CHANGE AT THE FED
CAPITAL ACCOUNT | By Greg Ip
Choice for Fed Chairman Is a Safe Gamble
President
Donald
Trump’s selection of Federal
Reserve governor Jerome
Powell to succeed Janet Yellen as chairman of the central
bank is something of a gamble. Unemployment is at a 16year low, economic growth is
picking up, the stock market
is setting records, and yet
he’s changing leaders at the
institution most responsible
for all of that.
As gambles go, it looks like
a safe one. Of all the candidates Mr. Trump considered
after deciding not to keep on
Ms. Yellen, Mr. Powell’s temperament and views come
closest to hers. He believes
the Fed should use all available tools to get unemployment down and keep inflation at its target of 2%. He
backs the regulatory framework put in place under President Barack Obama, albeit
with less strict implementation.
C
ANDREW HARRER/BLOOMBERG NEWS
M
r. Powell’s job will be
turning those beliefs
into effective policy.
Heading the Fed’s policy committee is harder than being a
member: It means not just
voting but deciding what will
be voted on.
If confirmed by the Senate,
as is likely, he will at some
point face second guessing
from colleagues, Congress
and perhaps the mercurial
man who picked him.
Mr. Powell, a lawyer and
banker, would be the first Fed
chair in three decades without a Ph.D. in economics. He
served at the Treasury under
George H.W. Bush, pursued a
career in investment banking
that a monetary policy that
succeeds at getting inflation
back up may also stoke an asset bubble whose ultimate demise brings on a recession.
Another challenge is to establish his own leadership.
From 1979 to 2006 Paul Volcker and Alan Greenspan enjoyed the reflexive deference
of most of their colleagues.
That deference ended with
the financial crisis.
Finally, he faces a treacherous political landscape. Monetary policy is no longer nonpartisan. Republicans
regularly disparaged Mr. Bernanke and Ms. Yellen and
many think Mr. Powell isn’t
much better.
Jerome Powell, above at the White House on Thursday, stands to become the first Fed chair in three decades without an economics Ph.D.
and private equity, then
landed at the Bipartisan Policy Center, a think tank.
Mr. Obama, whose staff appreciated Mr. Powell’s work
explaining to Republicans in
Congress the dangers of not
raising the debt ceiling, made
him a Fed governor in 2012.
Having served with two accomplished professors of
macroeconomics—Ms. Yellen
and her predecessor, Ben Bernanke—he has ended up seeing the world as they do.
In a 2015 interview, he was
asked if the Fed’s unconventional monetary stimulus was
actually holding back growth.
He answered, “I don’t understand what model of the
economy would require substantially higher interest rates
right now, which would mean
a vastly higher dollar, higher
mortgage costs and higher
costs for consumers, and
probably lower asset prices.”
Asked if the Fed’s low interest rates had encouraged
Congress to run up more
debt, he noted its mandate is
full employment and price
stability. “We’re not supposed
to sacrifice those two goals
[to] punish Congress for not
doing the right fiscal policy,”
he said.
To a modern central
banker those views are unremarkable, yet they aren’t
shared by two competing candidates to succeed Ms. Yellen,
former Fed governor Kevin
Warsh and Stanford Univer-
sity economist John Taylor.
Nonetheless, Mr. Powell
will face challenges that vex
even trained economists. The
first is the same one Ms. Yellen is now struggling with:
deciding how far to raise interest rates when the economy has no slack but inflation
is falling further below the
central bank’s 2% target.
Another front is the upward march of stock and
property prices. More than
Ms. Yellen, Mr. Powell worries
entral banks embody
the technocratic expertise that many of Mr.
Trump’s populist supporters
despise. Having discarded the
tradition that presidents reappoint the incumbent Fed
chairman regardless of party,
Mr. Trump may also discard
the practice of keeping criticism of the Fed to himself.
Past Fed chiefs have
needed political skills to head
off threats to their leadership
and the central bank. On that,
Mr. Powell is untested. Mr.
Trump faces pressure to nominate conservative skeptics of
the Fed’s easy-money policies
to fill its board vacancies,
which would narrow Mr. Powell’s room to maneuver from
the start.
Ms. Yellen could be an ally
of Mr. Powell’s on that front.
Though her term as chairwoman ends in February, she
could stay on as a governor
until that term ends in 2024.
In December, she said that
would be a “a decision for another day.”
A Usually Staid Process Was Infused With Suspense
As he cast about for someone to lead the world’s most
powerful central bank, President Donald Trump kept everyone guessing.
By Peter Nicholas,
Kate Davidson
and Michael C. Bender
The fortunes of different
candidates rose, fell and rose
again as Mr. Trump brought
them in for interviews and
peppered friends and advisers
with questions about whom to
nominate.
At times he seemed torn.
After the White House spent
months winnowing the field to
five finalists, aides worried
that Mr. Trump might scrap
the whole lot and nominate
someone else entirely.
In the end, Mr. Trump
opted for Fed governor Jerome Powell, a choice that is
both historic and, at the same
time, conventional, spurning
conservative candidates more
apt to upend Fed policies.
In putting his imprint on
the central bank, Mr. Trump
provided a glimpse into an executive style that relies heavily on instinct and improvisation. He infused the search
with suspense and showmanship seldom seen in the normally staid business of picking
a central-bank leader.
He quizzed a TV personality
about his preference, consulted a casino magnate,
polled senators about their
preferences, and teased the
public about the outcome.
“People are anxiously
awaiting my decision as to
who the next head of the Fed
will be,” Mr. Trump said last
week in a video posted on Instagram. “I have somebody
very specific in mind. I think
everybody will be very impressed.”
The decision also underscored the influence of Treasury Secretary Steven Mnuchin,
who helped lead the search. Mr.
Mnuchin was the biggest
“cheerleader” for Mr. Powell,
one White House official said.
For his part, Vice President
Mike Pence liked the more conservative-minded Stanford professor, John Taylor, though
people familiar with the matter
said he was also comfortable
with Mr. Powell.
This account is based on interviews with lawmakers, White
House aides, lobbyists and
Trump advisers and confidants.
The Powell nomination
breaks with tradition by marking the first time in nearly 40
years that a new president
didn’t offer another term to
the incumbent Fed chair—in
this case, Janet Yellen.
Mr. Powell was in some
ways the last candidate standing after months of twists and
turns in the process.
Nearly a year ago, Mr.
Trump’s surprising presidential victory made it likely Ms.
Yellen would be a one-term
Fed leader. In the final weeks
of the presidential campaign,
he frequently criticized her.
Once in office, however, Mr.
Trump began to warm to her
and said he might give her a
second term after all.
By September, White House
aides had presented the president with three other possible
options: Mr. Powell, Mr. Taylor
and former Fed governor
Kevin Warsh. Mr. Trump had
also been considering his top
economic adviser, Gary Cohn.
Mr. Trump began to interview candidates at the end of
How Fed Chairs Have Fared
Various Fed regimes have used interest rates to manage inflation, unemployment and the economy
Inflation*
William
McChesney Martin
Arthur
Burns
G. William
Miller
Paul
Volcker
Alan
Greenspan
Ben
Bernanke
Janet
Yellen
10%
8
6
4
2
0
1960
1970
1980
1990
2000
2010
1970
1980
1990
2000
2010
1980
1990
2000
2010
Unemployment rate†
10%
8
6
4
2
0
–2
1960
Effective Federal Funds Rate
20%
15
10
5
0
1960
1970
*Change from a year earlier in the price index for personal-consumption expenditures †Seasonally adjusted
THE WALL STREET JOURNAL.
Source: Federal Reserve Bank of St. Louis
September.
Mr. Trump sought advice
from unexpected places, even
talking with casino mogul
Steve Wynn, one administration official said.
He would interrupt meet-
ings in the Oval Office to go
around the room asking aides
what they thought of the various candidates.
Mr. Trump placed great
stock in the interviews.
Mr. Powell aced his inter-
view with the president. When
it was over, Mr. Trump remarked that Mr. Powell “had
good values.” Mr. Powell
“sounded pragmatic, like
Trump,” according to a person
briefed on the conversation.
The interview with Mr.
Warsh didn’t go as well. Mr.
Trump came away underwhelmed.
Messrs. Taylor, Warsh and
Cohn didn’t respond to requests seeking comment. A
Fed spokeswoman said Mr.
Powell and Ms. Yellen each declined to comment.
In an interview he gave
with Fox Business on Oct. 20,
Mr. Trump suggested that the
finalists were down to two:
Messrs. Powell and Taylor.
Talking to Republican senators on Oct. 24, he polled the
room. Mr. Trump asked for a
show of hands on whether the
senators preferred Mr. Powell
or Mr. Taylor.
The next day, the president
spoke to Lou Dobbs on Fox
Business Network and asked
the TV host who he would like
to see win the job. Mr. Dobbs
answered that Ms. Yellen
“might be worth keeping.”
“I would certainly think
about it,” the president said.
But Mr. Trump added that,
“you like to make your own
mark, which is maybe one of
the things she’s got a little bit
against her.”
As late as Friday, Oct. 27,
Mr. Trump was still asking
questions about different candidates, White House officials
said Thursday.
On the evening of Oct. 27,
the White House released the
Instagram video teasing viewers about the coming announcement.
Mr. Trump called Mr. Powell on Tuesday to tell him he
was nominating him for the
post. He phoned Ms. Yellen on
Thursday—before the formal
announcement—to tell her she
wouldn’t be getting the job, a
White House official said.
Yellen’s Exit as Fed Chief to Break With Recent Precedent
BY JOSH ZUMBRUN
Janet Yellen’s leadership at
the Federal Reserve is ending
after just one four-year term,
the shortest tenure at the
helm of the central bank in
nearly four decades, and a
break from recent precedent:
The previous three Fed chairmen all were reappointed by
presidents from the opposite
party that put them in office.
On Thursday, President Donald Trump nominated Jerome
Powell to succeed Ms. Yellen
when her term as central bank
chief ends in February.
Given her predisposition to
plot moves well in advance, she
likely will make no more major
decisions at the central bank
beyond the next quarter-point
interest-rate increase, which
many market participants expect to come in December.
Ms. Yellen, the Fed’s first female chief, led her colleagues
to slowly and cautiously reverse the central bank’s extraordinary stimulus programs
adopted during the financial
crisis, the subsequent recession
and the sluggish recovery.
She built consensus within
the central bank to move in
well-telegraphed, measured
steps to avoid roiling markets
and disrupting the economy’s
slow progress.
Mr. Trump’s decision comes
as the economy is growing
steadily and the labor market
is at or near full strength. The
Fed, however, failed on her
watch to achieve its goal of 2%
inflation.
During the first 16 months of
her leadership, the Fed held its
benchmark short-term interest
rate near zero as the unemploy-
ment rate fell and economic
growth strengthened.
In December 2015, she
guided the central bank to its
first rate increase in seven
years. The Fed has raised rates
three times since then and in
October began shrinking the
$4.2 trillion portfolio of bonds
it purchased during and after
the financial crisis to stabilize
markets and boost the economy.
“She had to walk, and is still
walking, a very fine line between a still fragile economy
and risks of leaving too much
accommodation in place for too
long,” said Roberto Perli, a
partner at Cornerstone Macro
and a former Fed economist. “I
think she managed to strike the
right balance.”
It wasn’t a foregone conclusion that the first postcrisis
tightening of monetary policy
would go so smoothly. In 2011,
for example, the European
Central Bank raised rates, but
set its economy reeling, exacerbated the continent’s debt
crisis and swiftly reversed
course. In 2013, Fed Chairman
Ben Bernanke sent the Trea-
sury market into a tailspin
with remarks—catching many
investors off guard—that the
Fed would soon wind down its
bond buying.
But under Ms. Yellen, U.S.
financial markets have taken
the Fed’s moves in stride.
“Janet Yellen hasn’t gotten
enough credit for being right
about the economy,” said Russell
Price, senior economist for
Ameriprise Financial, adding
that despite public debates
around her moves, there have
been no large and obvious policy
screw-ups during her tenure.
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A8 | Friday, November 3, 2017
* *
THE WALL STREET JOURNAL.
WORLD NEWS
Bank of England Raises Key Interest Rate
First increase in a
decade comes amid
global trend toward
ending stimulus steps
Bottom's Up
Bank of England policy rate
6%
5
BY JASON DOUGLAS
AND PAUL HANNON
4
3
STEFAN ROUSSEAU/AGENCE FRANCE-PRESSE/GETTY IMAGES
The Bank of England raised
its benchmark interest rate for
the first time in a decade, a
telegraphed move that represents the latest step by the
world’s major central banks to
withdraw crisis-era stimulus.
The BOE lifted its policy rate
to 0.5% on Thursday, from
0.25%, and signaled that further tightening would be gradual and limited, indicating just
two more quarter-point increases by the end of 2020. The
cautious tone resulted in sharp
falls for the British pound and
U.K. government bond yields.
The move is aimed at restraining inflation in an economy that is struggling to grow
as fast as its peers as a result
of a long period of weak productivity growth, which has
been worsened by the uncertainties that have followed the
June 2016 vote to leave the
European Union.
“The pace at which the
economy can grow without
generating inflationary pressures has fallen relative to
precrisis norms,” said Mark
Carney, the BOE’s governor.
“Over the next few years, modest demand growth is expected
to use up the little spare capacity remaining in the economy. Domestic inflationary
pressures are likely to build.”
Inflation was 3% in September, above the bank’s 2% target.
The U.K. central bank’s
move comes a day after the
U.S. Federal Reserve signaled
that it is poised to raise shortterm interest rates for the fifth
time since 2015 in December,
and a week after the European
2
1
0
2007
Bank of England Gov. Mark Carney in London on Thursday said the U.K. economy needs more-measured growth to temper inflation.
BOE Signals Plans
For More Measures,
But With Restraint
Five takeaways from the
bank’s interest-rate decision
CLEARLY FLAGGED
The BOE has signaled for
months that it was likely to raise
its key interest rate this year,
and ever more clearly, given the
reluctance of market participants
to believe it would do so while
the economy adjusted to Brexit.
Central Bank confirmed that it
will begin to dial back the pace
of its bond-buying program in
January. Also on Thursday, the
Czech National Bank raised its
key interest rate for the second time since August.
The U.S. and eurozone economies are growing at their
healthiest rates for years, part
of a synchronized upswing that
A LITTLE MORE TO COME
The big question for market
participants was how quickly and
sharply rates might rise after the
first move. The BOE answered
that by pointing to the need for
just two more increases of the
same magnitude by end-2020.
likely weigh on the economy
for years as Britain reorders
its economic and commercial
ties to the bloc and the wider
world. It said uncertainty
around Brexit is weighing on
investment and putting off
would-be immigrants, reducing the speed at which the
economy can grow without
pushing up prices.
“Any resolution of the uncertainty about the nature of,
and transition to, the U.K.’s future relationship with the EU
insofar as it affects the behavior of households, businesses
and financial-market participants would prompt a reassessment of the economic outlook,” Mr. Carney said.
In their quarterly set of
economic forecasts published
Thursday, officials estimated
the U.K.’s potential growth
rate at around 1.5% a year—
sharply lower than the
2%-2.25% growth rate the
economy tended to enjoy before the global financial crisis.
Brexit proponents say the
BREXIT
Gov. Mark Carney said the
global economy was “firing on
most cylinders,” and that the
withdrawal of stimulus by leading
central banks was therefore to
be expected. But he added that
the U.K. isn’t getting as much out
of that pickup, thanks to Brexit.
SPEED LIMITS
Its rationale for the move is
that the speed with which the
economy can grow without
generating too much inflation
has fallen since the global financial crisis, a trend exacerbated by the Brexit vote.
THE IMPACT
Mr. Carney said bringing inflation down from 3% now to
the central bank’s 2% target
would help end the squeeze on
real incomes, as will an expected pickup in wages.
has taken hold for the first time
since the global financial crisis.
“The global economy is firing on most cylinders. It’s doing very well,” Mr. Carney told
a press conference. “It’s not
surprising that the stance of
policy is changing. The U.K. is
participating a little less in this
global upswing. We are going
through a relatively unusual
period of underperformance.”
BOE officials say that is a
consequence of the uncertainty generated by the Brexit
vote. Negotiators from London
and Brussels are due to meet
for fresh divorce talks next
week. The U.K. is scheduled to
leave the EU in March 2019.
BOE officials reiterated
their view that Brexit will
DAVID RAMOS/GETTY IMAGES
By Jeannette
Neumann in Barcelona
and Valentina Pop
in Brussels
Catalans protest in Barcelona on Thursday against a judge’s order to jail nine separatist leaders.
aratist leaders, deciding they
should be held without bail
because of the risk they could
destroy evidence or flee Spain.
Her concerns about their
flight risk, Ms. Lamela wrote
in court documents published
Thursday evening, stem in
part from Mr. Puigdemont’s
flight to Belgium.
“The defendants have
played an active role in propelling the carefully-designed
secessionist process and skirting any kind of barrier that
could have deviated them from
their ultimate goal,” Ms.
Lamela wrote in court documents. She said public funds
had been spent to organize
and carry out an Oct. 1 referendum on independence
Using extraordinary constitutional powers, Prime Minister Mariano Rajoy ousted Mr.
Puigdemont and his officials
over the weekend after lawmakers there declared Catalonia an independent republic.
In a televised statement
aired on Catalan regional
television, Mr. Puigdemont
said he was the legitimate
president of Catalonia despite
being ousted by Madrid, and
he called on Spanish authorities to release his ex-cabinet
ministers. The detentions, he
said, “were an attack on democracy.”
The deposed Catalan leader
said Spanish authorities were
seeking a purely legal response to a political problem.
Madrid says it would be un-
constitutional to negotiate
Catalonia’s independence.
Tens of thousands of prosecession Catalans took to the
streets throughout the region
Thursday night after the
judge’s decision was announced.
Mr. Puigdemont’s extradition to Spain wouldn’t be automatic. If Spanish courts issue an order to detain Mr.
Puigdemont, a Belgian judge
would have to decide within 15
days whether to execute a European arrest warrant. If Mr.
Puigdemont agrees to be extradited, his return to Spain
would take place within 10
days. If he refuses, Belgian authorities would have two
months to repatriate him.
The Belgian judge can refuse to extradite in certain
cases, if for instance there are
serious reasons to believe the
person’s fundamental rights
would be violated. Mr. Puigdemont said Tuesday he feared
for his safety if he returned to
Spain.
Mr. Puigdemont’s Belgian
lawyer, Paul Bekaert, told
Flemish broadcaster VRT
Thursday that he expects a final decision on the extradition
to take up to two months. “In
my view this is not about a serious crime, this is not about
terrorism, and there is also
nothing pressing about it. So
it will take its regular course
in the justice system,” Mr. Bekaert said.
European Union Struggles to Contain Separatist Strife
Ousted Catalan leader Carles
Puigdemont’s surprise flight to
the European Union’s capital
this week underlined in dramatic
fashion
ANALYSIS that Europe, try
as it might, cannot brush separatist tensions under the carpet.
In a regional bloc dotted by
separatist claims but which
prides itself on peaceful, democratic responses to political
crises, the clash in Spain—the
latest echo of a centuries-old
rivalry—was never likely to be
easily navigated.
During the past 15 years, the
EU has evolved a set of responses to separatist aspirations that side pretty squarely
’17
THE WALL STREET JOURNAL.
A prosecutor asked a Spanish court on Thursday to issue
an arrest warrant for Carles
Puigdemont, the leader of Catalonia’s secessionist movement who fled to Belgium to
escape authorities in Spain.
BY LAURENCE NORMAN
2010
Source: Bank of England
Spain Prosecutor Seeks Catalan Chief’s Arrest
Mr. Puigdemont, who with
four other officials fled to Belgium in recent days, defied an
order to appear before Spanish judge Carmen Lamela on
Thursday, calling the inquiry
politically motivated and raising the possibility of a legal
battle to force him to return
home.
Ms. Lamela must decide
whether to grant the prosecutor’s request to issue an arrest
warrant for Mr. Puigdemont,
who is also the Catalan president, and the four other separatist leaders and deliver it to
the Belgian authorities.
Spain’s state prosecutor
earlier this week announced
he was seeking charges of rebellion, sedition and misappropriation of public funds
against 20 ousted Catalan
leaders, including Mr. Puigdemont. The decision came after
lawmakers in Catalonia declared the northeastern region
independent last Friday.
Ms. Lamela ordered the imprisonment of nine other sep-
Thursday
0.5%
with national governments.
While the bloc has encouraged
capitals to create political space
and show respect for regional
movements, it has taken a firm
line on the one issue Brussels
directs: EU membership.
That position—known as the
Prodi doctrine after former European Commission President
Romano Prodi—states that any
region breaking away from a
member state would automatically find itself outside the EU.
If it wished to join, it would
need to apply from scratch, a
process that can take years.
The EU stayed out of the
way of the 2014 Scottish independence referendum, with its
officials repeating the Prodi
doctrine ad nauseam and avoiding comment on anything else.
The Catalan crisis has
proved different, principally because Catalonia’s independence
bid has defied Madrid’s wishes,
in contrast with London’s green
light for the Scottish vote.
In effect, the line in Brussels
and most European capitals
was to support Madrid’s attack
on Catalan leaders being in
breach of Spain’s constitutional
and legal order, hope for a solution and keep out of the way.
That approach has failed to
circumvent tensions. The first
conflict emerged between
Spain and Belgium after Prime
Minister Charles Michel criticized Madrid’s handling of the
outlawed Oct. 1 referendum
vote that saw clashes between
police and voters.
Mr. Michel faced political
pressures of his own. He leads a
four-party coalition government that includes the N-VA,
the Flemish nationalist party
that came first in the last Belgian federal election. The N-VA
has old ties with Catalan leaders. In the past, Belgium has
also clashed with Spain by failing to extradite asylum seekers
Spain accused of being linked to
Basque terror group ETA.
When EU leaders met in
Brussels in mid-October, concerns were growing in some
capitals that Spain seemed to
be closing the door on dialogue
and escalating the standoff.
Yet ahead of the summit,
European Council President
Donald Tusk, who himself had
urged Madrid not to resort to
“the argument of force,” made
it clear Catalonia would be off
the agenda. He had spoken
with Spanish Prime Minister
Mariano Rajoy, who didn’t
want the issue discussed.
However, at the summit’s
dinner discussions, German
Chancellor Angela Merkel
asked Mr. Rajoy if he would
say a word on the Catalan situation. When Mr. Tusk later invited Mr. Rajoy to respond, he
waved his hands in a gesture
indicating he had nothing to
say, one of the officials said.
Mr. Puigdemont’s Brussels
sojourn could now keep the
Catalan crisis front and center.
The Catalan leader told journalists Tuesday that he wasn’t in
Brussels to apply for asylum
but had come to Europe’s capital to keep the debate alive.
U.K. will flourish after it exits
the EU and can pursue its own
policies on trade and regulation.
Thursday’s rate increase reverses a cut implemented as part
of a package of stimulus measures implemented in August
2016 in the wake of the EU referendum. The last time the BOE
raised its benchmark rate was in
July 2007, a decision that was
soon reversed as the global financial crisis swept over the U.K.
The BOE’s move was opposed by two of the central
bank’s nine rate-setters. Their
dissent wasn’t a surprise: Jon
Cunliffe and David Ramsden,
deputy governors of the central bank, had in recent weeks
signaled they felt a rate rise
would be premature while
wage growth remained weak.
“The increase in the bank
rate is difficult to justify given
the ongoing political uncertainty that surrounds Brexit
and the slow progress of negotiations between the U.K. and
the EU,” said Anthony Doyle, a
money manager at M&G Investments.
—Brian Blackstone
contributed to this article.
Rate increase batters pound,
U.K. yields.................................. B12
WORLD WATCH
BRAZIL
American Family Hid
In Jungle After Attack
An American couple and their
two young children who were
rescued after their barge was
attacked by pirates on a remote
Amazon River tributary were
transferred to a hospital for
treatment after hiding in the
jungle for three days, police said.
The couple, Adam and Emily
Harteau, 39 and 36 years old, and
their daughters Colette, 6, and Sierra, 3, have been roaming Latin
America in a Volkswagen van
since leaving California in 2012.
Police said they took the Harteaus to the hospital in the port
city of Breves in the northern
state of Pará. The family wasn’t
available for comment.
They had embarked from
Belém with their van on the
barge and had planned to travel
upriver to Macapá, Ms. Harteau’s
father, Warren Brandle, said.
But the barge was attacked
Sunday by pirates, who brought
the vessel and a tugboat to an
area called Porto dos Dias, the
Belém police chief, said. There,
the attackers took goods off the
barge, stole the Harteaus’ cellphones and abandoned the vessels, leaving the passengers and
crew stranded, he said.
—Paulo Trevisani
and Paul Kiernan
MYANMAR
Suu Kyi Goes to
Ethnic Conflict Zone
Myanmar leader Aung San
Suu Kyi on Thursday made her
first visit to violence-torn Rakhine State since the military
cracked down on minority Rohingya Muslims and drove hundreds of thousands of people
into neighboring Bangladesh.
The trip follows growing
pressure by Western countries
for her to address a crisis the
U.N. has called ethnic cleansing
in the Buddhist-majority country.
The military says it targeted
only Rohingya Muslim militants
who attacked security outposts.
An official said the visit was
connected with a plan to rehabilitate the state, which has been
racked by conflict. A Western diplomat said the plan is hard to understand “because the local environment is still so hostile to the
Rohingya, there is little chance
they will return right now.”
—Niharika Mandhana
and Myo Myo
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Friday, November 3, 2017 | A8A
EYE
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National Vision Holdings, Inc.
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condition. Investors should undertake their own due diligence before investing. ©2017. Nasdaq, Inc. All Rights Reserved. Business.Nasdaq.com
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A8B | Friday, November 3, 2017
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | A9
* * * *
WORLD NEWS
Mysterious Votes
Flip an Election
In Venezuela
BY ANATOLY KURMANAEV
North Korea
Criticizes
U.S. Sortie
Caracas
VENEZUELA
BO L ÍVAR
Ciudad
Bolivar
El Casabe
COLOMBIA
ANATOLY KURMANAEV/THE WALL STREET JOURNAL
EL CASABE, Venezuela—Aires Pérez Rodríguez traveled
by canoe for three hours to deliver the paper receipts showing a total of 225 votes cast for
state governor in this hamlet.
Then he passed them to his
aunt, who drove them a further 150 miles to the Bolívar
state capital.
When the official count was
released days after the Oct. 15
election, however, there were
an extra 471 votes for the government’s candidate. It wasn’t
just Mr. Pérez, the opposition
party’s election monitor, who
noticed. The ruling Socialist
Party’s own election supervisor
in El Casabe realized it, too.
“This is illegal,” said Luciano Mendoza, the election
supervisor, who showed The
Wall Street Journal the votingmachine receipts that counted
just a third as many votes from
the hamlet as reported by electoral authorities later. “They
say they bring justice, but instead they commit fraud.”
Mr.
Pérez’s
evidence
prompted opposition officials
in Ciudad Bolívar to make
more comparisons of voting
receipts to an official tally on
the National Electoral Council’s
website. All told, in records reviewed by the Journal, they
discovered that more than
2,500 votes were added statewide, flipping the winner of
the Bolívar state election from
the opposition candidate—
200 miles
200 km
BRAZIL
THE WALL STREET JOURNAL.
briefly listed as the winner on
the Electoral Council’s website—to
the
government
choice.
The declared winner, Justo
Noguera, a National Guard
general from outside the state
who never held political office,
took office two days later in a
surprise midnight ceremony.
“There’s clear manipulation
here,” said Luis Lander, director
of the Venezuelan Electoral Observatory, a nonpartisan group
in Caracas that tracks elections
after he examined voting-machine receipts that the opposition alliance posted online.
“The results were altered to allow the losing candidate to be
declared the winner.”
Bolívar was one of 18 of 23
Venezuelan states the ruling
party won in elections last
month and the only one where
evidence of vote fraud has surfaced. A coalition of opposition
parties is contesting some of
those results, alleging unfair
voting procedures.
The sequence in El Casabe
provides a rare look at how
Luciano Mendoza, an election supervisor in El Casabe, held up a voting-machine receipt at odds with the government’s accounting.
President Nicolás Maduro’s
government is trying to ensure
its political survival amid an
unprecedented economic crisis
defined by hyperinflation, food
scarcity and the collapse of
public services, say rights
groups and opposition activists. They say it bodes ill for an
election next month to pick
335 mayors across Venezuela.
The U.S. government, which
has levied sanctions against
his administration, says Mr.
Maduro is dismantling democratic institutions and yielding
more power to the military.
Officials from Bolívar’s governor’s office and the Maduro
administration didn’t respond
to requests to comments. Nor
have they commented publicly
on the matter. They haven’t
questioned the authenticity of
13 state voting-machine receipts
that showed a discrepancy.
Aldrin Torres, the Socialist
Party’s vice president of Bolívar’s state Congress, said in an
interview that “If there was
fraud, they have proper channels of appeal to turn to.”
On Thursday, Bolívar state’s
opposition contender Andrés
Velásquez, a nationally known
trade-union activist, published
a copy of a letter from the
Electoral Council admitting his
complaint over the vote. The
council would now have until
mid-December to investigate
and decide on the complaint,
according to electoral law.
Daniel Prieto, the Electoral
sions to gold wildcatters and
traffic in scarce gasoline, miners and local officials say.
Gen. Noguera succeeded a
Socialist Party governor, another
retired general. Mr. Velásquez
threatened the continuity represented by Gen. Noguera’s election, some critics say.
“A probing opposition candidate like Velásquez threatened the military’s business interests,” said retired Gen.
Cliver Alcalá, who ran Bolívar’s
military district until 2013 but
has since broken with Mr. Maduro. “That’s why the fraud to
maintain status quo there was
so obvious, so desperate.”
Council’s top Bolívar state official declined to comment and
referred questions to the council’s Caracas headquarters,
which didn’t comment. Gen.
Noguera didn’t respond to requests to comment.
Bolívar state is an economic
powerhouse where the military
is taking a leading role. It is
home to the country’s major
steel and aluminum plants, hydroelectric power and big deposits of gold and diamonds,
making it a vital source of foreign currency for the cashstrapped government.
Mr. Maduro has appointed
generals to run most of the
state’s steel and mining companies. Many lower-level military officers charge commis-
Venezuela courts showdown
on bonds........................................ B1
Kurds Face Setbacks Across the Middle East
BY JONATHAN CHENG
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
With Islamic State on the
wane, the West no longer
needs Kurdish help—and the
Kurds face a historic calamity once again, in part due to
their own leaders’ mistakes.
In Turkey and Iraq, Kurdish
achievements of recent years
have already been rolled back.
In Syria, too,
Kurdish gains
are confronting new perils
as the region’s
nation-states
work together
to squelch the possibility of
an independent Kurdish
homeland in the Middle East.
F
or a short moment
over two years ago,
many of the 30 million
Kurds, one of the world’s
largest ethnic groups without a state of their own, believed that history was finally on their side after
decades of massacres, persecution, and war.
In Iraq, Turkey and
Syria—three of the four nations (alongside Iran) that
include the main Kurdishpopulated territories—they
had secured unprecedented
ALAA AL-MARJANI/REUTERS
SEOUL — The U.S. flew two
B-1B bombers on a mission
near North Korea on Thursday
together with Japanese and
South Korean jet fighters, provoking anger from North Korea just days before President
Donald Trump departs for a
closely watched trip to the region.
The flyover, which U.S. Pacific Command said in a statement was planned in advance
and not in response to any
current event, comes as the
U.S. operates three carrier
strike groups in the Western
Pacific Ocean for the first time
in a decade.
As it has done earlier this
year, North Korea reported on
what it described as a stealth
B-1B flyover even before the
U.S. military publicly acknowledged the mission. In North
Korea’s account, published
early Friday morning through
its state media, the exercise
included a bombing drill on a
firing range in South Korea
that was meant to simulate a
nuclear strike on North Korea.
Pacific Command didn’t immediately respond to a request for comment on the timing of the announcement, or
on the inclusion of a bombing
drill. North Korea, in its statement, said that the mission
underlined what it said was
the U.S. “aggravating the situation of the Korean Peninsula
and seeking to ignite a nuclear
war.”
An Iraqi flag appeared on a military vehicle at an oil field on the outskirts of Kirkuk last month.
power and influence.
The Kurdistan region in
northern Iraq took advantage of the Iraqi army’s 2014
rout by Islamic State to seize
the oil-rich area of Kirkuk.
Elections in Turkey had deprived the ruling AKP party
of President Recep Tayyip
Erdogan of a parliamentary
majority and turned the
main pro-Kurdish party, HDP,
into the country’s third largest—with a real chance to influence national politics.
And in Syria, the dogged
defense of the Kurdish town
of Kobani against Islamic
State attracted international
sympathy—and U.S. military
assistance—to the SyrianKurdish YPG militia. Within
months, the Syrian Kurds became America’s indispensable partner against Islamic
State, seizing a significant
part of Syrian territory.
Now, these Kurdish gains
in Turkey and Iraq have been
lost, possibly for decades,
and the fate of Syrian Kurds
looks increasingly precarious
as the Syrian war enters its
endgame.
“We are going through a
very difficult moment, even
though we have seen worse
in the 1980s and 1990s,” said
Kendal Nezan, head of the
Kurdish Institute of Paris, a
think tank formed in 1983 to
rally Western support for the
Kurdish cause.
In Turkey, a July 2015
move by the Kurdistan Workers’ Party, or PKK, to resume
its armed struggle against
the Turkish state after a
two-year peace process allowed Mr. Erdogan to win a
rerun of elections later that
year amid nationalist fer-
vor. Subsequently, the PKK’s
disastrous decision to launch
an urban guerrilla campaign
resulted in the near-destruction of several Kurdish cities
and towns in the country’s
southeast. Both the U.S. and
Turkey consider the PKK a
terrorist organization.
Mr. Erdogan followed up
on the military campaign
against PKK by imprisoning
most of the leadership of
HDP, which he accused of being a PKK front, by removing
the elected HDP mayors
across Kurdish-populated
parts of Turkey, and by eliminating many other concessions to the Kurds.
I
n Iraq, meanwhile, the
Kurdistan Regional Government’s then-president,
Masoud Barzani, called a September independence referen-
dum despite international advice to the contrary and deepseated internal opposition to
his 25-year rule. The move
backfired astoundingly:
within days, the Kurdistan
government lost Kirkuk and
many of its privileges, with
internal conflict threatening
its very existence as a selfruled entity. Mr. Barzani himself had to step down.
“From the perspective of
most Kurds, the present predicament is largely due to incompetence, corruption and
nepotism afflicting the Kurdish ruling elite,” said one of
Mr. Barzani’s leading political opponents, Barham Salih,
a former Kurdistan prime
minister and former Iraqi
deputy prime minister.
Across the border in
Syria, the momentum—for
now—is still with the Kurds.
Backed by the U.S., the Kurdish-led forces recently seized
Islamic State’s stronghold of
Raqqa, and are pushing
down the Euphrates Valley.
But there, too, many Kurds
fear that once YPG is no longer useful against Islamic
State, Washington will end up
making a deal with Russia,
Turkey and even the Syrian
regime at the Kurds’ expense.
“Any one of these powers
can betray the Kurds anytime
and Damascus will be very
happy if the Kurds lose their
ground after having devastated Islamic State’s military
positions,” said Turkish lawmaker Ertugrul Kurkcu, one
of the few senior HDP leaders
who still remain free. “The
Kurds have fulfilled their duty
and can vanish now.”
CIA’s bin Laden Files Shed New Light on Iran-al Qaeda Alliance
A newly released trove of
documents the U.S. found in
the compound where Osama
bin Laden was killed provides
new insights into al Qaeda’s
By Margherita
Stancati in Beirut
and Asa Fitch in Dubai
relationship with Iran, suggesting a pragmatic alliance
that emerged out of shared
hatred of the U.S. and Saudi
Arabia.
After the U.S. toppled the
Taliban regime in Afghanistan
in 2001, members of al Qaeda,
which was based there, scrambled to escape. Most of them
crossed the border into Pakistan. But others moved to
Iran, an al Qaeda official who
appeared to be a senior member of the militant group
wrote in a lengthy 2007 account in one of the documents.
Both sides were willing to
overlook profound ideological
and religious differences to
combat common enemies. The
terror group practices an extreme interpretation of Sunni
Islam that considers Shiite Islam—Iran’s state religion—a
rejection of the true faith.
“In my experience, the Iranian regime is the best example…of pragmatism in politics,” the al Qaeda official
wrote in the document. “Anyone who wants to strike America, Iran is ready to support
them and help them with
money and arms and all that
is required as long as they are
not directly and clearly implicated.”
An official at Iran’s United
Nations mission didn’t re-
spond to a request to comment.
The release comes as President Donald Trump pursues a
hard line on Iran, refusing last
month to certify that Tehran
was complying with a nuclear
deal it reached in 2015 with
six world powers including the
U.S. The revelation of deeper
ties between Iran and al Qaeda
than many had understood
could further embolden American proponents of tough new
sanctions on Iran.
Many of the harshest international sanctions against the
country were removed under
the nuclear deal, in exchange
for Iran’s agreement to scale
back its disputed nuclear program. A U.N. monitoring body
has repeatedly certified Iran’s
compliance with the accord.
“These documents reveal
the complexities of al Qaeda’s
relationship with Iran in much
greater detail than ever before,” said Bruce Riedel, a former career CIA official who is
currently a senior fellow at
the Brookings Institution.
Tehran had offered
Qaeda fighters shelter,
money and weapons
to fight the U.S.
The U.S. placed sanctions
on three senior al Qaeda figures based in Iran last year.
“There is every reason to believe that the two remain in
contact today, working collaboratively when it suits mutual
interests,” Mr. Riedel added.
Strategic links between Iran
and al Qaeda stretch back decades. But nearly 470,000 files
released Wednesday by the
Central Intelligence Agency reveal the contours of a relationship that was both close but at
times fraught.
Iran welcomed al Qaeda
fighters as they fled Afghanistan. Tehran offered the fighters shelter, money and weapons as well as training in
camps run by its proxy Hezbollah in Lebanon. The author
said he didn’t know whether
any al Qaeda fighters ultimately ended up in Hezbollah
training camps.
A priority for Iran, wrote
the author, was to encourage
the jihadists to target the U.S.,
particularly in Saudi Arabia.
“They offered some of our
Saudi brothers…money and
arms and everything they
needed,” the al Qaeda official
wrote.
The Iranians gave them
strict instructions to keep a
low profile, banning them
from using phones or gathering in groups, according to the
document. But the jihadists
broke those rules, angering
their Iranian hosts and leading
to an unraveling of the relationship.
Iranian authorities rounded
up the al Qaeda fighters and
told them that the Americans
recorded many of their calls
and accused Iran of harboring
terrorists, the document’s author said. After that, Iran
tightly restricted the movement of the Qaeda fighters,
imprisoning some of them and
forcing others to leave.
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A9A | Friday, November 3, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Barriers Are
Installed to Help
Protect Bikeway
Two Ernst & Young executives take in the view, including the Empire State Building, during a tour of the Manhattan West site.
EY Plans to Relocate in Manhattan
BY KEIKO MORRIS
Global professional-services
company Ernst & Young LLP,
enticed in part by a state incentive package that could be
worth as much as $12 million,
is relocating its U.S. headquarters within the city to Manhattan’s far West Side.
The company said it has
signed a lease for 17 floors at
One Manhattan West, an office tower rising on an 8-acre
development in the Hudson
Yards District.
EY’s lease at 5 Times
Square, where its U.S. headquarters is now located, will
expire in 2022. It hasn’t decided whether it will retain
some presence there.
EY, which has been expand-
ing its presence in the metropolitan area, is part of a wave
of big tenants, including Amazon.com Inc., that have committed to taking space at the
Manhattan West complex.
The company liked Manhattan West’s location near Penn
Station and subway lines as
well as the modern construction and building systems offered by the complex and the
2.1 million square-foot office
tower where it will reside,
said Richard Jeanneret, vice
chair and northeast managing
partner at the company.
Another important component, he said: the tax-incentive package New York state is
offering. EY will receive tax
credits if it creates 1,152 jobs
in New York City over the next
seven years. The company has
about 10,000 employees in the
metropolitan area.
“At the end of the day, with
our analysis of space needs
and costs to lease that space,
the incentives helped us to
keep the concentration we
planned to have in the city,”
said Mr. Jeanneret.
In September, the state announced a $20 million taxcredit package for Amazon.com to add more than
2,000 jobs over 10 years in
New York City. Amazon signed
a 15-year lease for space at
Five Manhattan West.
“Our investments to attract
and retain the world’s leading
companies are creating highpaying jobs and leveraging
new investment to help
strengthen and grow our
economy,” said Gov. Andrew
Cuomo in a statement.
EY’s workforce has been
growing as the company provides more services to clients
in sectors including digital
technology, life sciences, consumer products and the media
and entertainment fields, said
Mr. Jeanneret. The company
this year opened offices in
Chelsea and Union Square.
Another office in Hoboken,
N.J., is expected to open later
this year.
Brookfield Property Partners LP, the developer behind
Manhattan West, has been on
a roll, signing leases for almost 1.6 million square feet at
the complex since May, the
company said.
Brownstone Plays Role in Manafort Case
It hasn’t been lost on Paul
Manafort’s Brooklyn neighbors
that their ultraliberal enclave
may help spell the downfall of
the veteran Republican operative who helped propel Donald
Trump to the White House.
On Tuesday night, amid Halloween celebrations, a carved
pumpkin bearing the face of
Special Counsel Robert Mueller
sat at the entrance of Mr.
Manafort’s uninhabited home, a
property cited in an indictment
against him. A plaque reading
“The House That Brought Down
A President” was affixed to the
gate.
Lisa Mendoza, a 52-year-old
neighbor, said she was relieved
that Mr. Manafort has never
lived in the Union Street home.
“It was really alarming to find
out Manafort had this house,”
she said.
Carroll Gardens and its surrounding neighborhoods voted
overwhelmingly for Democratic
AMY FINKEL
BY ERICA ORDEN
AND LAURA KUSISTO
A pumpkin placed outside Paul
Manafort’s Brooklyn brownstone.
presidential candidate Hillary
Clinton over Mr. Manafort’s
onetime boss, Mr. Trump.
The Brooklyn brownstone is
a key part of the charges that
allege Mr. Manafort laundered
more than $18 million between
2006 and 2016 to pay for what
prosecutors described as a “lavish lifestyle”—including rugs,
landscaping, cars and clothing—
without reporting the income to
the Internal Revenue Service.
The former Trump campaign
manager has pleaded not guilty
and his attorney has called the
case “ridiculous.” A spokesman
for Mr. Manafort declined to
comment for this article.
According to the indictment,
the Brooklyn property was purchased by Mr. Manafort in 2012
with $3 million in cash, all of
which came from an account he
held in Cyprus. Mr. Manafort
took out a $5 million loan
against the home in early 2016,
promising that $1.4 million of
that would be used for construction, according to the indictment. Instead, the indictment says, he used much of the
loan as a down payment on a
property in California.
The townhouse has sat abandoned and dilapidated for years,
with plywood and a padlock on
the front door in the past several months. About six weeks
ago, however, construction
workers began showing up every morning, according to
neighbors.
Ms. Mendoza said the house
has been renovated in fits-andstarts since Mr. Manafort’s purchase.
Jonathan Miller, president
of the real-estate firm Miller
Samuel Inc., said the controversy surrounding the property
is unlikely to hurt its resale
value. If anything, the added
back story and media attention
are essentially free publicity.
“That is a marketer’s dream if
you’re selling it, because you
have a lot of eyeballs on the
property,” he said.
Mr. Manafort, however, may
not be able to retain ownership
of the property. If he is convicted, the home would be
seized by the government, the
indictment says.
Mr. Manafort transferred the
deed for the property from a
limited liability corporation to
himself and his wife earlier this
year, according to property records. Steven L. Kessler, a New
York asset-forfeiture attorney,
said in that case the government may be able only to put a
lien on the property, not force a
sale, and would be entitled to
Mr. Manafort’s share of the proceeds of an eventual sale.
Concrete barriers are being
deployed along the Hudson
River Greenway in Manhattan
where a truck killed eight
people and injured 12 in a terrorist attack this week.
A spokesman for New York
City Mayor Bill de Blasio
said Thursday that six rectangular barriers will be placed
at each of the 31 points where
vehicles intersect with the
bike path between 59th Street
and the Battery.
The spokesman, Ben Sarle,
added that two cube-shaped
barriers will be placed at each
of 26 pedestrian intersections
on the Hudson River side of
the cycle path. The work began on Thursday, Mr. Sarle
said.
The deployment of the barriers follows Tuesday’s terrorist attack in which, police
say, Sayfullo Saipov, 29 years
old, drove a truck for nearly a
mile down the bike path,
south from Pier 40, before
crashing into a school bus.
The bike path is separated
from traffic for miles. Even so,
Transportation Alternatives, a
nonprofit advocacy group, has
called for better protection
from vehicles for almost a decade. In 2006, cyclist Eric Ng
was killed by a drunken driver
who entered the bike path at
Chelsea Piers.
Paul Steely White, executive director of Transportation Alternatives, cautiously
welcomed the barriers on
Thursday. But he said that he
was concerned they could create a safety hazard for cyclists.
“The city and state should
move quickly to replace these
concrete blocks with strategically placed metal bollards
and other robust yet contextsensitive barriers,” Mr. Steely
White said. Bollards, which
are tall and thin, take up less
physical space. “We look forward to working with the city
to ensure that the barriers do
not create unnecessary hazards for greenway users.”
Shin-pei Tsay, executive director of Gehl Institute, an urban design research nonprofit
based in New York, said there
was a risk that the barriers
could create pinch points
along the greenway where cyclists will bunch as they attempt to navigate them.
Deployment of the
concrete barriers
follows the terrorist
attack on Tuesday.
“I understand the impetus
to do it, but it will reduce accessibility,” she said.
The rectangular barriers
will be installed by New York
State Department of Transportation, while the city and
NYPD will install the cube
barriers.
“We began installing Jersey barriers on the path this
morning to ensure that all entry points are secure and will
continue to evaluate all necessary steps to protect pedestrian safety,” said Jennifer
Post, a spokeswoman for the
state Transportation Department. She didn’t address concerns about the barriers creating bottlenecks on the path.
JOEL CADMAN/THE WALL STREET JOURNAL
MARK KAUZLARICH FOR THE WALL STREET JOURNAL
BY PAUL BERGER
A concrete barrier is installed along the Hudson River Greenway
on Thursday to protect bikers from vehicles.
Closing Arguments Begin in U.S. Sen. Menendez’s Corruption Trial
BY THOMAS MACMILLAN
In closing arguments Thursday in the corruption trial of
U.S. Sen. Bob Menendez, a defense lawyer accused prosecutors of lying to jury members to
secure a conviction.
“They’re lying to you,” attorney Kirk Ogrosky said in Newark federal court. “They’re making up a story and trying to
make the evidence fit the story.”
Mr. Ogrosky represents Mr.
Menendez’s friend and co-defendant, Florida eye doctor
Salomon Melgen. Prosecutors
say the two men were for
years involved in a scheme in
which Dr. Melgen plied the
senator with gifts and campaign contributions in exchange for political favors.
Their lawyers have said the
government is trying to criminalize a simple friendship.
Closing arguments began Thursday after eight
weeks of testimony. They will
continue Monday, after which
the jury is expected to begin
deliberations.
If Mr. Menendez, a Democrat, is convicted, he could be
expelled from the Senate by a
two-thirds majority vote of his
colleagues. If he resigns or is
forced out, his successor could
be appointed by exiting Republican Gov. Chris Christie.
Mr. Menendez served for
years as “Dr. Melgen’s own personal United States senator,”
prosecutor Joseph Cooney told
the jury. The doctor essentially
kept the senator on retainer
with years of gifts, including
flights on his private jet, Carib-
bean vacations, and a $4,900
stay in a fancy Paris hotel, Mr.
Cooney said. He also made hundreds of thousands of dollars of
campaign contributions to benefit the senator, Mr. Cooney said.
In return, Mr. Menendez
helped secure visas for three
female friends of Dr. Melgen,
sought to intervene on a port
security contract dispute involving the doctor and tried to
help Dr. Melgen with a Medicare billing dispute that was
costing him millions of dollars,
Mr. Cooney said.
Don’t be swayed by the
friendship defense, he warned
jurors. “Friends can bribe each
other.”
Mr. Menendez’s attorney,
Abbe Lowell, is expected to
make his closing argument on
Monday.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | A9B
NY
* *
®ROBERTOCOIN
GREATER NEW YORK
Broadway Royal Hits a Milestone
Disney-Produced Musical ‘The Lion King’ Celebrates 20 Years
BY CHARLES PASSY
Local News
Websites Are
Shut Down
BY AUSTEN HUFFORD
A suite of local news websites, including one launched
by TD Ameritrade founder Joe
Ricketts, abruptly shut down
Thursday, a week after its New
York journalists voted to
unionize.
The decision to abruptly
close highlights the struggles
local media players have faced
in gaining audiences and
maintaining a profit.
Local news websites DNAinfo
and Gothamist redirected readers to a letter Thursday evening, saying the operations had
shut down for financial reasons.
“DNAinfo is, at the end of
the day, a business, and businesses need to be economically successful if they are to
endure,” said Mr. Ricketts,
chief executive of DNAinfo.
“I’m hopeful that in time,
someone will crack the code
on a business that can support
exceptional neighborhood storytelling.”
AFL-CIO affiliate Writers
Guild of America, East said
last week on its website that
25 of 27 editorial employees
from Gothamist and DNAinfo
in New York voted for the
Writers Guild to be their bargaining representative.
A union representative said
in a statement Thursday the
union is “deeply concerned”
about the decision and is looking for “areas of recourse.”
In a statement, DNAinfo
said “the decision by the NY
editorial team to unionize is
simply another competitive
obstacle making it harder for
the business to be financially
successful.”
“This is an act of direct retaliation for our successful
union effort,” DNAinfo reporter Noah Hurowitz wrote
on Twitter.
DNAinfo, which also had a
chapter in Chicago, was
founded in 2009 and focused
on hyperlocal coverage of
neighborhoods. Gothamist,
founded in 2003 with a focus
on arts and culture, had a
number of other sites around
the world. DNAinfo bought
Gothamist earlier this year.
MARK KAUZLARICH FOR THE WALL STREET JOURNAL
W
hen Lindiwe
Dlamini joined the
original Broadway
cast of “The Lion King” in
1997, she hoped the musical
might be her home for a
stretch of time.
“I could tell it was going
to be a long-running show,
but I never thought it was
going to be 20 years,” she
said.
“The Lion King,” the Disney-produced musical based
on the movie of the same
name, marks that very milestone this month. And Ms.
Dlamini, a 49-year-old South
African native who is part of
the show’s vocal ensemble,
remains the only performer
to have been with it the entire time.
It amounts to a stint of
roughly 7,500 appearances,
making Ms. Dlamini one of
the longest-tenured artists in
Broadway history.
To put it in perspective,
Ms. Dlamini’s run equates to
about 3,000 more performances than the late Yul
Brynner, celebrated as a theatrical iron man, gave as the
king of Siam in various productions of “The King and I.”
During Ms. Dlamini’s tenure, the show has seen no
fewer than four performers
come and go in the lead role
of Mufasa. She has also outlasted seven actors who have
played Pumbaa and seven
who have played Timon, two
other key roles.
Ms. Dlamini said there is
no secret as to why she has
stayed with the Tony Awardwinning musical for so long.
“I haven’t thought of going
to another show because this
is the best show on Broadway,” she said.
At the very least, it is one
of the biggest financial successes on Broadway. Over its
20-year run, the Julie Taymor-directed show, which incorporates African folk elements to tell its set-in-the-
Lindiwe Dlamini has been with “The Lion King” musical since it opened in 1997. The South African
native, part of the show’s vocal ensemble, is the only performer to have been with it from the start.
jungle coming-of-age story,
has grossed $1.4 billion and
continues to play to capacity
audiences week after week.
The show has also spawned
more than 20 productions
world-wide.
Ms. Dlamini says boredom
has never been an issue,
largely because of the dy-
7,500
The number of appearances by
Lindiwe Dlamini in “The Lion King.”
namic nature of the musical,
where performers often parade around in larger-thanlife, puppet-style costumes.
“It’s not like a show where
you can just be sleeping…It
requires your attention fully
all the time,” she said.
It also doesn’t hurt that
an occasional boldface name
is in the audience. Ms.
Dlamini recalls performing
for everyone from President
Bill Clinton to Michael Jackson.
T
o some extent, the real
appeal of “The Lion
King” for Ms. Dlamini
is what happens behind the
scenes. The cast, which includes other performers recruited from South Africa, is
known for being one of the
most tightly knit on Broadway.
Ms. Dlamini met her future husband, Bongi Duma,
while performing together in
the show. He remains a part
of the cast and the couple
now travels together from
their home in New Jersey for
every performance.
Not that every one of Ms.
Dlamini’s 7,500 performances
has gone so smoothly. She
recalls the time she once
tripped on her costume and
fell. “All these 1,700 people
saw me,” she said.
Ms. Dlamini’s fellow cast
members credit her with im-
buing the production with a
festive spirit, both onstage
and off. “Whenever you walk
past her, she’s always got a
massive smile on her face,”
said Stephen Carlile, the actor who has played the lead
role of Scar for almost the
past year.
Ms. Dlamini is far from
the only veteran presence on
Broadway. Other long-running shows, from “Kinky
Boots” to “The Phantom of
the Opera,” retain their
share of cast members.
Still, a 20-year run is another matter. “I think that’s
unbelievable,” said Daniel
Stewart Sherman, a “Kinky
Boots” cast member who has
been with the show since its
2013 opening.
Ms. Dlamini has never
sought a more prominent
role during her time with
“The Lion King.” And for the
present time, she has no
plans to leave the show.
“As long as I’m still capable of doing it, I will do it,”
she said.
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GREATER NEW YORK WATCH
NEW JERSEY POLITICS
OBITUARY
Democrat Reported
$4.6 Million Income
Philanthropist
Joan Tisch Dies
Phil Murphy, the Democratic
candidate for New Jersey governor, released a federal tax return
document Thursday showing reported adjusted gross income of
more than $4.6 million last year.
A summary provided by his
campaign showed Mr. Murphy, a
former Goldman Sachs executive,
and his wife paid nearly $1.5 million in combined federal and New
Jersey state taxes last year, an
effective tax rate of about 32%.
—Kate King
Joan Tisch, a noted philanthropist and the widow of former New York Giants co-owner
Bob Tisch, died Thursday, the
team said. She was 90 years old.
Mrs. Tisch served as a Museum of Modern Art trustee and
was on the board of Citymeals
on Wheels, a nonprofit that delivers food to the elderly. She
was co-chair of the Tisch Center
for the Arts at the 92nd Street Y
in Manhattan.
—Associated Press
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A10 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
LIFE&ARTS
TELEVISION REVIEW
By Dorothy Rabinowitz
Hunting For
Justice
ACORN TV
Ida Engvoll in
the title role.
LIONSGATE (2)
FROM THE DAY Rebecka Martinsson
(Ida Engvoll) receives news of an old
friend’s death, her life is transformed. It’s
a life to envy, it would seem, with the best
of everything within reach if not yet entirely hers—she’s already the object of unstinting, if not outright blind, devotion of
a highly desirable man. A work-driven
lawyer considered a star of her Stockholm
law firm, she’s come a long way from the
small-town world of her childhood in
Northern Sweden, to which she now reluctantly returns. It’s there that she learns
that the dear friend reportedly killed in an
accident was in fact murdered, and where
the first of these spine-chilling mysteries
begins. All (they come with subtitles) are
based on the novels of Asa Larsson, a
busy tax lawyer herself before settling
into a career as a popular crime novelist.
Intent on finding the killer who ended
the life of her old friend and protector,
Rebecka effectively abandons her job at
the law firm for detective work. It will be
her role throughout this eight-part series—a heroine fearless in her pursuit of
answers and also an emotionally vulnerable one in ways that define her character.
Put another way, in a television world
now awash in female coppers there
aren’t many as interesting and human as
Rebecka. That will be clear when the
first case concludes with a sudden horrific act of violence—precisely the sort of
thing to expect from a murder mystery.
But this act has something of the unbearable about it, which says much about
the skill of the writing here, about characters so vividly created that the snuffing
out of their lives can’t be borne. There’s
not another scene like it in the rest of the
series, but the script, and performances,
shine throughout, as does the arctic background, both beautiful and menacing. It’s
therefore no surprise when a search for
bodies in a lake dredges up a Nazi warplane, its huge black swastika looming up
as it’s pulled from the waters. With it
comes all necessary material leading to a
hunt for a former Nazi collaborator, with
a quietly intrusive Rebecka on the case.
FILM REVIEW | By Joe Morgenstern
Surrendering
To the Conventional
Richard Linklater has created a sequel of sorts to ‘The Last Detail’
IN “LAST FLAG FLYING” Richard Linklater, one of the most adventurous of contemporary American directors, has done a
resolutely conventional sequel of sorts—different names for essentially the same characters—to “The Last Detail.” That’s the
fondly remembered 1973 comedy, based on a
novel by Darryl Ponicsan, with Jack Nicholson and Otis Young as Navy men escorting a
hapless young thief played by Randy Quaid
to a brig in Portsmouth, N.H. On the
strength of what’s on screen, Mr. Linklater’s
sequel was never a good idea.
The story starts when a man walks into a
bar in Norfolk, Va., in 2003, 30 years after
the original film, which was directed with
bawdy exuberance by Hal Ashby. For a while
the barkeep, Sal (Bryan Cranston), doesn’t
recognize the man, who is eerily withdrawn.
Eventually, though, the plot quickens. Sal
sees that it’s his old Navy buddy, a former
corpsman called Doc, and we see that Doc is
played by Steve Carell behind wire-rimmed
specs and a mournful demeanor. Doc, who’s
been living in Portsmouth after spending
eight years in the brig, reveals that his son,
a young Marine, has just died a hero’s death
in Iraq, and he asks Sal to accompany him
to Arlington National Cemetery, where the
boy is to be buried with full military honors.
Rebecka Martinsson
Acorn TV, Monday
Weather
10s
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Edmonton
10s
V
Vancouver
<0
30s
20s
0s
C garyy
Calgary
Seattle
P
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Portland
Eugene
Montreal
Billings
Bismarckk
30s
Boise
50s
20s
50s
l
Helena
40s
10s
p
Winnipeg
20s
Ottawa
Pau
Mpls./St.. Paul
40s
T
Toronto
A bany
bany
Albany
Buffalo
30s
60s
A g t
Augusta
40s
t
Boston
50s
60s
rtford
Hartford
k
Milwaukee
t
Detroit
ew Y
New
Yorkk
70s
Cl l d
Cleve
Cleveland
Ch g
Chic
Chicago
40s
Salt LLake
ake City
es Moines
Des
Reno
Pittsburgh
Ch y
Che
Cheyenne
Ph
hil d lphi
80s
h
Omaha
70s Philadelphia
di
p
Indianapolis
Sacramento
Denver
Kansas
90s
hington
hi
gton D.C.
DC
Washington
an Francisco
San
p
Springfield
50s
Topeka City
50s
Charles
h
Charleston
100+
h
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Richmond
Colo
C
l d
Colorado
Las
Lou
L
St.. Louis
Lou
Louisville
60s
hit
Wichita
p g
Springs
Veg
Vegas
l igh
h
Raleigh
50s
50s Santa
h ill
Nashville
Los A
Angeles
Ange
l
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C
h l tt
Charlotte
70s
60s
Mem
phi
h
Memphis
C
b
Columbia
Albuquerque
Ph
Phoenix
k homa City
Cit
C y
Oklahoma
Warm
Rain
San Diego
A
Atlanta
Little Rock
70s
70s
80s
gh
Birmingham
J k
Jackson
T cson
Tucson
D
Dallas
Cold
80s
T-storms
F Worth
Worth
Ft.
El Paso
Jacksonville
bil
Mobile
80s 90s Austin
A ti
Stationary Snow
Houston
20s
l d
Orlando
ew Orleans
New
Tampa
an Antonio
A t i
San
80s
30s
40s
40s
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ll
Pierre Sioux
40s
Honolulu
l l
A h
Anchora
Anchorage
Miami
90s
Showers
70s
U.S. Forecasts
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Tomorrow
Hi Lo W
60 42 c
83 66 pc
60 54 pc
85 59 pc
59 52 r
53 39 pc
48 40 r
61 38 c
70 64 c
62 42 r
60 47 r
68 42 pc
44 38 r
53 39 c
61 55 sh
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
54
68
86
90
55
52
55
77
92
51
50
Today
Lo W
44 pc
55 pc
60 pc
73 pc
29 s
41 pc
47 pc
52 pc
76 s
41 c
44 c
Tomorrow
Hi Lo W
58 45 c
66 54 sh
81 61 s
87 71 pc
57 34 s
53 45 pc
59 43 c
75 55 s
92 75 s
48 36 pc
49 36 pc
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Soon the two men seek out and draft a third
aging buddy for the journey, Laurence Fishburne’s once-raunchy Mueller, who has
gained gravitas, and a fleshly dimension, as
the Rev. Richard Mueller.
Unlike the screenplay for the original
film, a zestful adaptation by Robert Towne,
this script is credited to Mr. Linklater and
Mr. Ponicsan. It’s often entertaining, and the
actors do what they can to keep the energy
flowing; Mr. Cranston works particularly
hard to make Sal funny and not just insuf-
Today
Hi Lo W
55 40 pc
62 41 s
83 68 pc
79 70 c
61 52 pc
92 77 pc
65 52 s
86 57 s
58 51 c
66 49 pc
89 77 pc
61 43 pc
78 53 pc
61 46 s
35 27 pc
95 77 s
62 49 pc
83 70 s
89 63 s
66 50 pc
86 76 s
59 39 pc
72 49 s
86 78 c
80 60 pc
76 68 r
69 58 pc
53 35 pc
42 28 s
52 42 c
60 40 pc
Tomorrow
Hi Lo W
58 48 pc
61 46 sh
81 68 pc
76 68 c
59 51 r
93 77 t
64 53 s
89 58 s
54 38 r
61 45 t
87 79 c
60 42 pc
78 50 pc
58 51 sh
36 29 pc
95 77 s
60 43 c
89 73 pc
90 62 s
68 54 pc
87 76 pc
54 36 s
60 50 c
85 77 t
67 61 sh
70 66 r
68 50 pc
47 42 c
40 30 c
52 40 pc
59 41 pc
1
2
3
4
5
6
7
8
9
10
11
14
15
16
17
18
19
20
21
22
24
27
28
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26
37
39
33
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52
38
40
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13
23
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44
12
30
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43
46
47
48
49
53
54
59
60
61
62
63
64
55
56
57
58
HEAD IN THE CLOUDS | By Marie Kelly
The answer to
this week’s contest
crossword is a
weather
phenomenon.
Across
1 Backsplash
material
5 Take testimony
from
11 Number of
reps
14 Responsibility
15 Future seeds
16 “Mars Attacks!”
sight
17 Containers with
taps
18 Ruler’s stand-in
19 Foul up
20 Entertain
22 Balance
precariously
24 Dish often
accompanying
turkey
26 “What could I
have been
thinking?”
27 Singer/
songwriter of
42-Across
31 Make blank
32 Simple dress
style
33 Glad item
36 Fledgling’s home
37 Main impact
38 Brought into the
world
39 Powdery residue
40 Attacked an
attacker, say
41 Pat’s colleague
42 Popular song
also called
“Clouds”
44 Protection from
prosecution
47 “The Assault on
Reason” author
48 Napkin art
49 Warmed in the
microwave
53 Primitive
54 Ferret’s cousin
58 Choral voice
Email your answer—in the subject line—to crosswordcontest@wsj.com
by 11:59 p.m. Eastern Time Sunday, Nov. 5. A solver selected at random
will win a WSJ mug. Last week’s winner: Jay Miller, Pasadena, CA.
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
39 29 s
38 32 pc
Atlanta
79 60 pc 79 60 pc
Austin
85 67 pc 84 67 pc
Baltimore
76 44 pc 61 52 r
Boise
55 34 sh 46 29 r
Boston
70 44 c
52 47 pc
Burlington
61 36 sh 49 41 c
Charlotte
81 57 pc 74 57 pc
Chicago
50 43 c
52 48 r
Cleveland
55 39 pc 59 53 r
Dallas
83 63 s
90 68 s
Denver
67 46 pc 71 38 pc
Detroit
53 38 pc 53 48 r
Honolulu
87 77 pc 87 75 sh
Houston
86 68 pc 86 69 pc
Indianapolis
59 44 c
62 58 r
Kansas City
54 45 c
64 53 c
Las Vegas
74 57 pc 74 56 c
Little Rock
79 60 t
81 65 c
Los Angeles
67 60 c
67 60 c
Miami
84 72 pc 85 72 s
Milwaukee
47 43 pc 50 47 r
Minneapolis
39 33 sn 44 40 c
Nashville
75 59 sh 77 62 sh
New Orleans
82 64 sh 81 63 pc
New York City
72 48 pc 57 53 pc
Oklahoma City
65 48 pc 81 63 pc
Flurries
Ice
Today
Hi Lo W
50 39 pc
82 65 pc
74 50 pc
83 62 pc
59 38 c
66 36 sh
50 37 sh
62 52 r
62 55 c
66 50 pc
64 54 r
66 40 s
45 34 sh
43 33 c
78 51 pc
ferable, which he tends to be with his wiseguy cynicism. But the effort shows in all
three performances. Spontaneity is in short
supply. The comedy seems willed, the solemnity mechanical, the dialogue rhythms
awkward and self-conscious.
A more serious flaw emerges when Doc
learns that the circumstances of his son’s
heroism were not what they seemed. “Last
Flag Flying” launches into denunciations of
American foreign policy that are ill-advised,
whether or not you agree with them, because they’re ill-dramatized—clumsily in
the case of Doc, who briefly morphs into a
soapbox orator, and crudely in the person
of Col. Wilits (Yul Vazquez), a funeral-arrangements officer who counters Doc’s attacks with hollow slogans. What’s more, and
worse, the movie addresses a good subject—the value of sustaining illusions in the
face of anguishing truths—but can’t figure
out where to come out on it, since the last
few minutes seem to be saying that patriotic rituals can still comfort us even though
we know they’re utterly hollow. After “The
Last Detail” and “Last Flag Flying,” that’s
the last straw.
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.
30s
Steve Carell and Bryan Cranston, above,
and J. Quinton Johnson, left.
PUZZLE
CONTEST
59
60
61
62
63
Player’s protector
Irish stew staple
Play group
Have a go at
Sudden spells of
activity
64 Tony of “Veep”
Down
1 White House
visit
2 About
3 Alveolus site
4 Lamb, for one
5 Scratch
6 WALL-E’s love
7 Flat-nosed pooch
8 Cheer for
capework
9 Conscious
10 Parsons of
“Bonnie and
Clyde”
11 Like mincemeat
12 Violinist
Zimbalist
13 Yankees
manager before
Girardi
21 Hardly convincing
23 Architect’s
add-on
25 Like 24-Across
26 Lively do
27 Malone of the
“Hunger Games”
movies
28 They need
refinement
29 “I don’t mind
eels/Except as
meals” writer
30 What are you
looking at?
33 City on the Rhine
34 River to the
Ligurian Sea
35 Use one’s
incisors
37 Call at home
38 Diamond edge
40 Hajjis, e.g.
41 Designer Wang
42 Foundation
43 Doughnut shop
buys
44 Take on
45 Wisdom tooth,
e.g.
46 Tropical tern
50 Solicitation
51 Bibliographer’s
abbr.
52 Mosque feature
55 MetroCard seller
56 “___ love’s
illusions I recall...”
57 Monique ou
Michel
Previous Puzzle’s Solution
A
T
O
P
C
O
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T
O
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I
F
A
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A
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S
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S
P E
T
A L
E L L I
P A L
S N O B
G R I
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C A
A
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L K N E
L I T
I N E S
O
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D D E
MA R
H A MM
O D
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U D A
P E R U
A C C
WT H O
A H
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E
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | A11
NY
LIFE & ARTS
THEATER REVIEW | By Terry Teachout
Sarah Gadon
as Grace.
TELEVISION REVIEW | By Dorothy Rabinowitz
THE ACCUSED HAS
MANY FACES
JEREMY DANIEL
New York
ZOE KAZAN, one of New York’s
finest under-40 actors, is also a
playwright and screenwriter of uncommon talent. “Ruby Sparks,” her
first screenplay, was a romcom
with a feminist edge that had
something exceedingly thoughtful
to say about the tendency of men
to idealize women instead of accepting them as they really are.
“After the Blast,” Ms. Kazan’s
fourth stage play, is as thoughtful
and wellmade as “Ruby Sparks,”
and it pulls off the bedazzling feat
of taking a hyper-politicized
topic—climate change—and using
it as the occasion for a taut, sermon-free drama whose true subject
is, once again, the inability of men
and women to see each other plain.
“After the Blast” is a sciencefiction play, a dystopian fantasy
set in “the near future” whose
eight characters include a robot.
The premise, which Ms. Kazan
leaves suggestively vague, is that
the surface of the earth has been
laid waste by a nuclear exchange
that punched more holes in the
ozone layer, thus forcing a saving
remnant of highly intelligent men
and women to move underground
while everyone else is left to
starve. The male survivors, most
of whom are scientists, then devote themselves to fixing the environment, while the women
mostly look after them and bear
their children—but only if the
Council, a deceptively soft technological tyranny, decides that they
should be allowed to reproduce.
You get five chances to pass the
motherhood test, after which your
permit (so to speak) is revoked
permanently.
After laying out the “rules” of
the play with incisive economy in a
cunningly elliptical prefatory dialogue scene, Ms. Kazan introduces
us to her principal characters, a
married couple named Anna (Cristin Milioti) and Oliver (William
Jackson Harper) who are, as he explains in the first scene, “still waiting to receive Fertility.” They have
only one chance left to pass the
test and become parents, for Anna
suffers from a potentially disqualifying case of depression caused by
JAN THIJS/NETFLIX
Post-Apocalyptic Politics
Cristin Milioti as Anna with the robot ‘Helper.'
her inability to cope with the
stresses of underground life.
In order to coax Anna back to
emotional health, Oliver brings
home a “Helper,” a home-assistance robot that must, he tells her,
be trained to interact with humans
so that it can be placed in the
homes of older people who are no
longer capable of living alone. In
the process of teaching the robot
how to talk, Anna bonds with it,
eventually coming to see it as a
kind of foster child. I can’t say
much more without giving away
the secret that triggers the climax
of “After the Blast,” so I’ll tell you
only that in Ms. Kazan’s cramped
underground world, nothing is exactly as it seems—including the
marriage of Anna and Oliver.
Ms. Milioti is now best known as
a TV actor, but her heart-stopping
performance in “Once” made it clear
that she had and has the stuff of
full-fledged stage stardom. She
brings to “After the Blast” a disciplined yet utterly natural intensity
that makes it impossible for you to
look at anyone else whenever she’s
on stage—although her robotic companion, who resembles a warm,
fuzzy first cousin of R2-D2, is al-
75 YEARS OF AUCTIONS
most as good as a flesh-and-blood
child actor at stealing scenes. The
rest of the cast is top-notch, and
Lila Neugebauer, the director, has
staged “After the Blast” with her
now-familiar blend of emotional delicacy and technical deftness. Daniel
Zimmerman’s set design is suitably
sterile (everyone in the underground
world seems to shop at IKEA).
The true star of “After the
Blast,” however, is its creator. At
34, Ms. Kazan has emerged as a
writer of real individuality, one to
whom the word “promising” no
longer applies. Her youthful promise is now well and truly realized,
and while I selfishly hope that she
never stops acting, “After the
Blast,” like “Ruby Sparks” before
it, is the stuff full-time literary careers are made of.
After the Blast
Lincoln Center Theater, Claire Tow
Theater, 150 W. 65th St. ($30),
212-239-6200, closes Nov. 19
Mr. Teachout is the Journal’s
drama critic. “Billy and Me,” his
new play, opens at Palm Beach
Dramaworks on Dec. 8. Write to
him at tteachout@wsj.com.
‘ALIAS GRACE,” was adapted
from a Margaret Atwood novel inspired by the actual story of Grace
Marks, a 19th-century servant girl
charged, and convicted in a famous Toronto trial, of murdering
her employer and his housekeeper
lover. These few facts about the
case are worth keeping in mind.
For there’s not much else certain
about what happened to Grace, or
how, in this saga, whose strengths,
such as they are, include an impressive performance by Sarah
Gadon, in the role of Grace, an
Irish immigrant who has known
only hard work and subservience
in her life. Even better, there’s the
sumptuous period detail of Victorian-age Toronto.
These aside, it’s fairly soon
clear that this is script-writing
captivated by its own ambiguity—a condition in no danger of
being infectious to huge numbers of the film’s viewers. Who
Grace is—a victim or murderer, a
conniver or traumatized innocent, a person hardened by the
experience of life as a woman
and a servant, or a combination
of all or many of these possibilities—is a question given multiple and changing answers.
The portrait of Grace that consequently emerges is, in its perverse way, that of a woman who
is all. Which would work nicely as
a thrust at the society that has so
cruelly misused her, judged her,
never seen her as other than an
inferior—an immigrant, a female,
a servant—capable of any evil.
But it doesn’t suffice for drama
or the rendering of character,
whose heart an audience can
sense. That capacity is left to the
kindly, handsome and vulnerable
Dr. Jordan (Edward Holcroft),
who interviews Grace with the intention of helping her recall the
events that had led to her being
charged with murder. Though the
doctor has treated her with exquisite sensitivity, Grace pointedly observes that he harbors
strong feelings for her—sexual
feelings. That recognition is a
charge, sneered in silken tones.
The doctor has been brought in
by the justice-minded civic group
working for Grace’s pardon. His
job is to write a report, as a psychiatrist, that would support
their efforts. But the doctor is an
earnest professional, intent on
extracting the facts, despite his
clear feelings for Grace. His exchanges with her, his occasional
jolts of shock at some unexpected
detail in Grace’s soft-spoken recollections—bespeaking anything
but innocence—are genuine high
points in a work otherwise buried
in its showy vagueness.
Alias Grace
Netflix, Friday
IMPRESSIONIST
& MODERN ART
PREVIEW
November 3-14, 2017
Tuesday November 14, 2017 at 5pm
New York
INQUIRIES
+1 (212) 644 9135
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Figurine [Femme debout au chignon]
bronze with grey and brown patination
8 7/8 in (height)
$500,000 - 700,000
© 2017 Alberto Giacometti Estate
/Licensed by VAGA and ARS, New York
International Auctioneers & Appraisers – bonhams.com/impressionist
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THE WALL STREET JOURNAL.
A12 | Friday, November 3, 2017
SPORTS
WORLD SERIES
Chemistry Experiment Leads to Title
Houston was already the most analytically driven club in baseball. And then it started paying attention to the team’s culture.
“It’s a different type of game
now than it was when they first
came up,” McCullers said. “The
younger guys have [different] personalities.”
But these additions fit right in,
and by the end of the season, virtually everybody could tell a story
about them. It explains why
McCullers called McCann “the
heartbeat of the team.” Or why
Luhnow said that without the
presence of Beltran and McCann
during a difficult slump in August,
“I’m not sure we get through the
same way.”
In Game 3 of the World Series,
Astros first baseman Yuli Gurriel
made an offensive gesture after
hitting a home run off Dodgers
pitcher Yu Darvish, who hails from
Japan. The incident sparked a controversy and threatened to fracture the team. Beltran calmed the
tide, first advising Gurriel on how
to handle the aftermath and then
texting Darvish to smooth things
over.
Some Astros even credited Beltran for helping them survive the
New York Yankees in the American
League Championship Series. In
the clubhouse after Game 5, following their third consecutive loss
in the Bronx, Beltran stood up in
front of his teammates and delivered an impassioned speech reminding them of their ability. Afterward, Reddick said, “I knew we
were going to come back and do
special things.”
They did just that.
“Those guys came in here and
said, ‘Everyone be who you are.
We’re going to support you,’”
McCullers said. “You cannot put a
price tag on how much those guys
really meant to this team.”
That influence trickled down to
some of the less experienced players, resulting in a culture that almost certainly factored into the
Astros’ success. For example, 23year-old third baseman Alex Bregman worked hard to learn Spanish,
allowing him to communicate fluently with all of his teammates,
not just the English-speaking ones.
In a sport where clubhouses often divide down racial lines, Bregman’s commitment to a second
language goes a long way.
“He’s a bridge,” said Astros
bench coach Alex Cora, who in
2018 will take over as the Boston
Red Sox manager. “That’s an important thing in the clubhouse.”
For sure, the Astros didn’t revolutionize the concept of caring
about chemistry. The Chicago
Cubs, the World Series champions
in 2016, also prioritized traits they
could not measure in players. Few
expected the Astros to do the
same. Now, however, they will parade down the streets of downtown Houston as champions.
“Culture is a hard thing to really
quantify,” Luhnow said. “But when
you see it you know it’s there.”
BY JARED DIAMOND
Above, Houston third baseman Alex
Bregman lifts teammate Jose Altuve
after Game 7. Left, catcher Brian
McCann gets high-fives.
T-B: HARRY HOW, KEVORK DJANSEZIAN (GETTY IMAGES)
Los Angeles
DALLAS KEUCHEL debuted with
the Houston Astros in 2012, the
same season Jeff Luhnow assumed
the role of general manager and
transformed them into a team unlike
any other in the major leagues.
Keuchel didn’t immediately warm up
to the new approach.
Under Luhnow’s stewardship,
the Astros developed into the industry’s most analytically driven
organization, relying almost entirely on data to navigate through
a full-blown rebuild. They assembled one of the largest and most
sophisticated research departments in the game, filled with talent from the worlds of economics,
physics and engineering. Their
early adoption of the infield shift
helped turn the strategy from a
rarely deployed gimmick into a
ubiquitous practice. They popularized the concept of “tanking”—essentially losing on purpose to
stockpile prospects for the future.
But for all of their bold ideas,
the Astros too often forgot about
one important aspect: their players.
“There was a disconnect,” said
Keuchel, Houston’s ace pitcher.
“Every player was a number instead of a person.”
This winter, Keuchel felt a
change. Luhnow and his staff, who
seemed to care only about quantitative elements, appeared to put
genuine effort into connecting
with the athletes in the clubhouse.
That willingness to defy their
reputation by embracing the value
of chemistry and culture paid
enormous dividends in 2017: The
Astros won the World Series, their
first since the franchise’s creation
in 1962, defeating the Los Angeles
Dodgers in Wednesday night’s decisive Game 7. Now, Keuchel says,
“Every player is a person.”
It represented a subtle, but crucial shift in the Astros’ thinking.
Though numbers remain their focus, the driving force that propelled them from the bottom of
the standings to the pinnacle of
the baseball universe, Luhnow
learned a lesson along the way: To
deny the significance of chemistry
ignores a critical component of the
equation that equals a championship roster.
“The human element of baseball
is always going to be important,
but so is all the science and technology,” Luhnow said. “It’s the
teams that are able to appropriately blend all of that together
that are going to have success.
We’ve done our best to try to
blend it all in a way that leads to
better decisions.”
Luhnow admits the Astros
didn’t always do a particularly
good job in that area, perhaps believing that the players would ac-
cept information they didn’t necessarily understand or agree with
when they saw the results. That
didn’t happen, forcing Luhnow to
alter his messaging.
Consider the shift, for example.
The Astros began using it in earnest in 2012 and 2013 but failed to
explain their reasoning for leaning
so heavily on such a radical tactic.
“The players started to push
back,” Luhnow said. So during
spring training in 2014, the front
office delivered a presentation to
the players outlining all the statistics that justified the defensive
alignment.
Sharing that data bothered Luhnow. He worried about players leaving the Astros for other teams and
sharing proprietary research. Ultimately, though, the desire to generate a little more harmony in the
clubhouse superseded that concern.
“We’re more of an open book
with our players,” Luhnow said.
“We tell them why as opposed to
just how.”
In the last offseason, Luhnow
took another key step by acquiring
three veteran players to join their
young team: He signed Carlos Beltran and Josh Reddick as free
agents, and traded for catcher Brian
McCann. The moves cost money—
$16 million for Beltran in 2017 and
$52 million for Reddick over four
seasons—and two minor-leaguers.
The Astros hoped all three players would contribute on the field,
of course. But just as important,
they were targeted to serve as
leaders and mentors for the homegrown stars.
At first, the incumbent Astros
didn’t know how to react to a
bunch of older guys entering their
locker room. Lance McCullers, a
24-year-old right-hander selected
in the first round of the 2012
draft, said that, “Sometimes when
you bring in veterans, it can be a
terrible thing, honestly.”
WORLD SERIES | By Jason Gay
FOR BASEBALL, LOVE IS IN THE AIR
gizing than you’d think.)
We’ve seen versions of the Live
Sports Proposal before, of course.
Two summers ago, Chinese divers
Qin Kai and He Zi got engaged
right after competing at the Rio
Olympics, as did Brazilian rugby
player Isadora Cerulla and her
girlfriend, Marjorie Enya.
Probably the most famous onfield proposal was Boise State run-
The Live Sports
Proposal is romantic—
but like any pitch, it
carries some risk.
ning back Ian Johnson, who popped
the question to Broncos cheerleader
Chrissy Popadics moments after
pulling off a game-winning 2-point
conversion at the Fiesta Bowl. And
my pro wrestling nut editor at the
Journal, Jim Chairusmi, will be furious at me if I don’t mention that
John Cena successfully proposed to
Nikki Bella at WrestleMania this
past April.
The Sports Proposal is romantic—but like any pitch, it carries
some risk. A rejection would have
likely put a damper on Correa’s
World Series party. Imagine putting on those champagne goggles
after getting a “no” on live TV.
JAE C. HONG/ASSOCIATED PRESS
Aw, come on, Carlos
Correa, you’re making
the rest of us humans
look like schmucks.
True story: I proposed to my wife nine
years ago, on Halloween. Not exactly a romantic evening, unless
you’re Dracula. I fumbled for a
fake plastic diamond ring I bought
for $6 bucks on St. Mark’s Place.
She said yes—and has regretted
it ever since.
But Correa? Did you see the
heart-stirring stunt he pulled
Wednesday night after the Astros
won the World Series? Houston
was on the field at Dodger Stadium celebrating its first title in
team history, when the 23-year-old
shortstop turned to his girlfriend,
Daniella Rodriguez, and proposed
to her on live television.
“Daniella Rodriguez, you make
me the happiest man in the world,”
Correa said. “Will you marry me?”
“Oh my God!” Rodriguez exclaimed. Then they kissed the type
of long kiss I only thought happened
in Reese Witherspoon movies.
I’m not crying! You’re crying!
It was an adorable moment,
clandestinely coordinated by Correa and Fox Sports reporter Ken
Rosenthal. (Rosenthal has a hilarious account of the behind-thescenes of the proposal at The Athletic. Short version: Correa came
to Rosenthal with the idea after
Game 5—and it took more strate-
Houston shortstop Carlos Correa proposed to Daniella Rodriguez after Game 7.
But pro athletes are confident
beings. A lot of them think they’re
going to play forever.
The Astros helpfully took some
of the stress out of Correa’s plan,
jumping to an early advantage in
Game 7. In the ninth inning, Houston simply needed to hang onto a
four-run lead.
The groom-to-be gave Fox’s
postgame panel a run-down of his
final prep.
“In the 9th inning, I go in the
clubhouse, and I talk to the [clubhouse attendant]: ‘I don’t want to
jinx it, but if we get these three
outs, I need you to bring me this,’”
Correa told Alex Rodriguez—
whose own romantic tale with Jennifer Lopez is currently the cover
story on Vanity Fair.
And what if the Astros had lost?
“I didn’t have a Plan B,” Correa
said.
What is Plan B? A sad couples
dinner at the Cheesecake Factory?
A weekend trip to go buy couch
pillows and bath mats? Browns
tickets?
Love abounds with these likable
Astros, who seem built to contend
for years. The Houston Chronicle
reported that ace pitcher Justin
Verlander is set to marry his finance, the model Kate Upton, in
Tuscany later this month.
Tuscany! Now that’s a romantic
place to get married. And the food
and wine over there isn’t so bad,
either.
It’s wild to see all this good will
and viral excitement circulating
around baseball. The aging game
has enjoyed a stirring renaissance
lately, capped by a World Series
with great teams, compelling story
lines, and beefy TV ratings. Game 7
may have been anti-climactic, but
it was a doozy of a Series overall,
with epics in Game 2 and Game 5.
Baseball’s been easy to pick on
in recent years, for being too old,
too stubborn, too slow.
But last year the Cubs—and
now the Houston Astros?
This feels like a honeymoon.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
Friday, November 3, 2017 | A13
THE WALL STREET JOURNAL.
OPINION
A Tale of Two Republicans
Jeff Flake last
week took to
the
Senate
floor to proclaim
that
since
he
would not be
POTOMAC
“complicit or
WATCH
silent” in the
By Kimberley
Trump presiA. Strassel
dency, he will
not seek reelection. The first-term Arizona senator bemoaned that
as a “traditional Republican,”
he had a “narrower and narrow path” to office in this
Trump world.
The speech earned Mr.
Flake all the plaudits you’d
expect, from all the usual suspects. Conservative Never
Trumpers and the media “resistance” believe the president is destroying the Republican Party, the country,
democracy and the universe—
in that order. Those who join
in their daily denouncements
of Mr. Trump receive standing ovations. Those who don’t
are falsely accused, to quote
Mr. Flake in his speech, of
“complete and unquestioning
loyalty” and duly excommunicated from “moral” conservative society.
Yes, Mr. Trump is a wrecking ball; and yes, conservatives
have a right and a duty to
worry about the damage he
may do to the Republican Party
and its principles. Where the
Never Trumpers err is in insisting that the only response
is full-on resistance, shaming
and utter denunciation. Not
only is that approach simplistic, it is a proven loser.
Mr. Flake is a case in point.
Among elected officials, he is
rivaled perhaps only by Ohio
Gov. John Kasich as loudest
Never Trumper. The senator
doesn’t like the president’s
views on trade or immigration
(join the club). But like Mr. Kasich, he has rarely bothered to
spell out specific areas where
he disagreed with Mr. Trump,
or to note the significant
points of agreement (deregulation, judges, etc.). His is a
blanket condemnation. In Mr.
Flake’s new book, “Conscience
of a Conservative,” he compares Mr. Trump’s politics to a
“late-night infomercial.”
This sweeping reproof was
a sign to Trump supporters in
Arizona that Mr. Flake either
didn’t know or didn’t care
why they support this president. So they wrote him off—
much as he wrote off Mr.
Trump. Mr. Flake was never
going to get Democratic support, and once he alienated
half of his state’s Republican
voters, of course his path to
re-election was narrow. Mr.
Flake blew himself out of office, and he is now in a much
poorer position to make any
difference in the shape of
Washington policies or the future of his party.
Contrast this approach to
that of Ed Gillespie, whom the
Never Trumpers are branding
a sellout. The longtime (traditional) Republican nearly won
a Senate seat in Virginia three
years ago and now is running
for governor in the only
Southern state Hillary Clinton
carried last year. Virginia is a
swing state for Republicans—
much tougher than Arizona.
Its voters are down on Mr.
Trump, and Mr. Gillespie faces
a well-funded Democratic candidate in Lt. Gov. Ralph
Northam.
Yet the latest polls suggest
Mr. Gillespie could pull this
off. He’s broadened his path to
office by employing the very
Ed Gillespie takes a
far more constructive
approach to Trump
than Jeff Flake does.
different strategy of attempting to navigate—and where
possible, unite—the GOP’s
Trump and non-Trump factions.
Consider his dual approach
to immigration and crime. Mr.
Gillespie’s Senate campaign
was a model in 2014 for its
outreach to immigrants, and
he is building on that now
with a heavy pitch of inclusivity to minority communities.
He’s released ads in Spanish
and Korean and is stressing
his pro-jobs agenda to the
state’s growing Asian-American community. All this is crucial to the GOP’s future, reassuring to moderate voters,
and utterly un-Trumpian.
On the flip side, Mr. Gillespie has taken a strong line
against illegal and criminal
aliens. His ads accusing Mr.
Northam of being soft on the
international MS-13 crime gang
prompted Never Trumpers to
accuse him of catering to a
nativist Trump base. But
MS-13 has engaged in brutal
murders, and is of concern to
Trump voters and Northern
Virginia suburbanites alike.
And it is true that Mr.
Northam cast a tie-breaking
Virginia Senate vote in favor of
sanctuary cities.
On both policy and political
grounds, this is a smart and
reasonable way to straddle
the party’s different factions.
And the recognition of Trump
voter concerns about illegalalien crime is likely the best
means by which (traditional)
Republicans give themselves
the running room to push for
more compassionate immigration reform for folks like the
Dreamers. Which is what Mr.
Flake claims he wants.
The Never Trumpers are
also accusing Mr. Gillespie of
cowardice for failing to disown
the president. Why should he?
Mr. Gillespie has diligently focused his campaign on the local jobs-and-economy issues
that matter most to Virginians. Beyond that, he has offered criticism of specific
Trump actions and praise of
others. Call them as you see
them. That’s a fair approach in
the age of Trump.
The important part: It gives
Mr. Gillespie a fighting
chance—and, should he win, a
powerful perch from which he
can help navigate his party
through the Trumpian gales.
It all might not be as cathartic
as an emotional Senate
speech. But it will go a lot further to help conservatism survive this presidency.
Write to kim@wsj.com.
The Real Story of the Reformation
HOUSES OF This
WORSHIP
the
week
world
By Eric
celebrates
Metaxas
the 500th anniversary of
an event that
never happened. Well, something did happen, and it altered the course of history. But
what actually took place is astoundingly different from how
it is portrayed today.
As the story is told, on Oct.
31, 1517, an Augustinian monk
named Martin Luther socked
the European church establishment in the kisser by defiantly
nailing his “95 Theses” on indulgences to the door of the
Castle Church in Wittenberg,
Germany. The thunder of his
hammer resounded throughout
the world. It was as though he
had stuck his finger in the
pope’s eye.
The document brazenly
charged the Catholic Church
with corruption. The corrupt
powers-that-be were put on
notice that the vile practice of
indulgences—whereby
the
faithful could throw a coin in
the coffer to buy their way out
of purgatory or worse—must
end forever.
Except it never happened, at
least not that way. Luther
probably didn’t post his theses
on the famous date celebrated
each year, though he likely did
within a month of the designated day. And they might
never have been posted by Luther, despite five centuries of
paintings depicting him doing
just that. As it happens, he may
have handed the document to a
church custodian to post. And
if Luther did post it himself, he
may even have unheroically affixed it with paste.
More important, posting
the document on the door of
the Wittenberg Castle Church
was not an act of calculated
defiance. That door had long
served as the community bulletin board for anything and
everything. For context, imagine the fabled document
posted next to a flyer for a
missing cat.
The most important difference between how most people
remember the event and what
actually happened is that the
30-something monk never
dreamt that history would notice what he was doing. He did
not intend to be defiant or to
cause trouble. And he certainly
did not plan to shake the foundations of the church he loved
and obediently served. The
idea that this all might lead to
a sundering of the church was
unthinkable. If he had thought
of it, it would have utterly horrified him.
And the theses were written
in Latin, which no one but cultural elites could understand.
If there was anything provocative in what he wrote, it was
only because such documents
typically contained an edgy
thesis or two in the hopes of
instigating a robust debate.
The brainy Saxon monk
merely wanted to coax his fellow theologians into an academic debate on indulgences,
thinking that something might
be done about the troubling
practice through the proper
and customary channels. What
happened shocked Luther
more than anyone.
A copy of the document was
promptly delivered to Rome,
where it furrowed Vatican
brows and upset the papal
stomach. Far worse, Luther’s
well-meaning Saxon colleagues
Martin Luther
expected a debate on
indulgences—not a
reset of Christianity.
quickly translated the document into German. Then they
duplicated it endlessly without
his permission, courtesy of a
relatively new technology invented by a fellow German, Johannes Gutenberg. Suddenly
everyone was reading it across
Europe and debating its
points. Before Luther could say
“sola scriptura,” the horse had
slipped out of the barn and
was wildly trampling the status quo that had existed for
centuries.
Within four years, Luther’s
written and oral responses to
the growing conflagration had
taken the world by storm and
he arguably had become the
first genuine celebrity in
world history. The frothy torrent of writings that poured
from his pen would make
printers and publishers rich,
with no royalties ever paid to
him for his troubles. And his
woodcut portraits reproduced
like rabbits across the German
landscape.
The powerful ideas Luther’s
writings conveyed would in
time lead to virtually everything we now take for granted
in the modern world. By
prompting the end of Vatican
hegemony, Luther opened the
door for the creation of thousands of new churches under
dozens of denominations, Lutheran among them. In the
coming centuries, this attitude
would help elevate the concepts
of religious pluralism, tolerance,
democracy and freedom.
Who knew? Certainly not
Martin Luther, whose grotesque pronouncements against
the Jews near the end of his
life proved that he simply did
not comprehend the ramifications of what he had loosed
upon the world.
But by humbly raising the
questions he had in 1517, and
then by responding to the attacks that followed as truthfully and carefully as he could,
Luther ended up cracking the
great edifice of medieval
Christendom in twain. And for
good and for ill both, out of
that opening the future itself
seemed to fly.
Mr. Metaxas is the author
of “Martin Luther: The Man
Who Rediscovered God and
Changed the World,” just out
from Viking Press.
The Pentagon’s Vital African Mission
By James Inhofe
I
t will take many weeks to
resolve the unanswered
questions about the loss of
four American soldiers in Niger. But having studied U.S.Africa policy, I think one thing
is abundantly clear: Our military engagements in Africa,
while dangerous, are critical to
national security.
I’ll always remember speaking with the president of Niger
shortly after 9/11, when he
warned me about the extremism spreading across the continent. After meeting with the
president of Uganda a few years
later, I saw the brutality of the
Lord’s Resistance Army long
before splashy advocacy campaigns made Joseph Kony a
household name. The U.S. military has aided regional forces in
hunting the LRA, but Africa still
has many more violent extremist groups, which makes American partnership critical.
In 2007 the Pentagon created the U.S. Africa Command, better known as Africom. Its mission: to train and
assist regional partners so
that they will be capable of
handling security threats before they become global crises.
The worst possible scenario
would be for multiple African
countries to turn into failed
states, giving terrorists a place
to take root, as they did in Afghanistan before 2001.
The worst scenario
is failed states where
terror can take root.
This strategy is working. In
Somalia a consortium of troops
from Ethiopia, Uganda and Burundi (among others) is helping to bring stability. In the
fledgling democracy of South
Sudan, mired in conflict since
its creation, an African Unionled regional force has joined
United Nations peacekeepers,
using strategies learned in a
previous U.S. partnership.
Mali’s instability makes American assistance to neighboring
Niger a strategic imperative.
But the four American
deaths in Niger also underscore
weaknesses that must be addressed at Africom. It is the
only combatant command without dedicated troop resources.
It lacks basing and strategic access: Africom’s headquarters
are in Germany, and the U.S.
has just one base on the entire
continent, in Djibouti, limiting
its ability to respond to crises
in a timely manner. For years,
Africom’s requests for additional resources—specifically,
intelligence, surveillance and
reconnaissance assets—have
been repeatedly denied. While
such denials aren’t unique to
Africom, that its resources are
already limited makes the effect on its long-term mission
more severe.
The troops in Niger had to
rely on French jets for air support, and then the U.S. had to
contract with a private company to airlift the wounded to
a military hospital in Germany.
Until Africom is provided stable and dedicated resources, it
will continue to fall short of its
potential.
Still, stability on the continent has improved since Africom was established. Ethiopia,
Tanzania and Ghana have enjoyed democratic transfers of
power. Rwanda, which I visited
two weeks ago, has experienced a renaissance under the
tenure of President Paul Kagame, who led the nation out of
genocide.
Great progress like this will
only be enhanced by President
Trump. He understands that
the chronic underfunding of
the U.S. military during the
Obama years degraded readiness and left America unprepared to fully address the most
dangerous global landscape in
modern history.
As chairman of the Senate’s
Armed Services Readiness
Subcommittee, I am working
with the president to get the
military—including Africom—
the funding it needs. Africom
is vital to America’s national
security, which is why legislators must make it a priority.
Mr. Inhofe, a Republican, is
a U.S. senator from Oklahoma.
BOOKSHELF | By Melanie Kirkpatrick
Disturber
Of the Peace
The Trials of a Scold
By Jeff Biggers
(Thomas Dunne, 260 pages, $26.99)
A
nne Royall is extolled as the first female journalist to
interview a president of the United States. According
to the usual telling of the story, she perched herself
atop the clothes of John Quincy Adams while he was skinny
dipping in the Potomac, refusing to return them until he
agreed to talk to her. Adams supposedly answered Royall’s
questions while treading water in the river.
The tale is almost certainly apocryphal, and Royall’s
biographer, Jeff Biggers, neatly debunks it in “The Trials of
a Scold.” True or not, the story captures the spirit of this
unconventional woman, who took up journalism late in life
and then contended with some of the most powerful
political and religious figures of her day. In 1891, nearly a
half-century after Royall’s
death, a headline in the
Washington Post
proclaimed: “She was a
Holy Terror: Her Pen was as
Venomous as a Rattlesnake’s
Fangs.” What journalist, now
or then, would not want to
be remembered as a holy
terror?
Royall’s beginnings were
humble. Born in Maryland in
1769, she moved with her family
to the backwoods frontier of
southwestern Pennsylvania. In
1782, she survived an attack by
British and Seneca forces on the settlement of Hanna’s Town, Pa. She later wrote that
“the present generation have scarcely any idea of the privations and trouble of settling the country. . . . I suffered all
that human nature could bear, both with cold and hunger.”
By the time she was 18, her family had moved to what is
now West Virginia. There her mother got a job as a maid
working for William Royall, a member of the gentry. William
took a liking to his maid’s intelligent daughter and opened
his library to her. Anne soon moved in with the much older
man, and the couple eventually married. After William’s
death in 1812, Anne lost most of her inheritance in a legal
dispute with William’s family that left her penniless. Mr.
Biggers speculates that she spent time in debtors’ prison.
It was at this point in her life—widowed and destitute—
that Royall set out to reinvent herself as a writer. She became
an “itinerant storyteller,” Mr. Biggers writes, traveling first
to the new state of Alabama, where she wrote the initial of
her series of “Black Books.” These popular volumes were
“informative but sardonic portraits of the elite and their
denizens from Mississippi to Maine.” In an expanding
nation, Royall’s incisive descriptions of American life and
individual Americans from many walks of life were popular
reading and a sharp contrast to the sentimental literature
penned by other female writers. Her shabby demeanor, foul
mouth and fearless attitude set her apart from the
“respectable” women of the day and added to her notoriety.
Anne Royall’s sharp tongue, shabby demeanor,
fearless attitude and venomous pen set her
apart from the ‘respectable’ women of her day.
This was the time of the Second Great Awakening, and
one of Royall’s favorite targets were evangelicals, whom she
dubbed “blue skins” and “blackcoats.” Politicians were in
her sights too, and she “rattled the bones of Capitol Hill,”
Mr. Biggers writes, as a “whistleblower of political
corruption, fraudulent land schemes, and banking scandals.”
Royall’s biting portraits of public figures helped establish
her reputation, but she also wrote sympathetically about the
American underclass. In a dispatch from Baltimore, she
described the public hanging of a black woman, excoriating
the observers for their “eagerness.” “Who is said to have a
soul at all,” she asked, “who can calmly stand by, and view
the struggles of a fellow mortal in the pangs of such an exit?”
Mr. Biggers devotes a big chunk of his book to a chapter
in Royall’s life that he oversells as “The Last American Witch
Trial.” In the late 1820s, Royall moved to Washington, where
she took up residence on Capitol Hill. Her windows overlooked a fire station where a Presbyterian congregation held
nightly prayer meetings—a violation of the separation of
church and state, she believed, since the fire station was a
public building. She could hear the sermons and hymn
singing next door, and she shouted profanity-laced catcalls
out her window. One Presbyterian complained that she called
him a “damned old bald headed son of a bitch.”
Royall soon found herself arrested under a federal
indictment that charged her with being “an evil-disposed
person and a common scold and disturber of the peace and
happiness of her quiet and honest neighbors.” As the judge
would explain, a common scold—communis rixatrix in
Latin—was a common-law offense dating back to medieval
times in England. It applied only to women, and the
punishment was dunking. Royall was convicted, though
spared a dunking, which the judge deemed barbaric.
The trial sparked a media circus that only enhanced Royall’s
celebrity. Mr. Biggers provides a detailed (if sometimes
confusing) examination of the trial along with an interesting
history of American women accused of being “scolds.” After
the trial, Royall went back on the road and then returned to
Washington to launch a newspaper. Its mission statement
read: “We shall expose all and every species of political evil,
and religious fraud, without fear or affection.”
Mr. Biggers clearly admires his subject and can be forgiven
for overstating Royall’s literary ability and political influence.
He says that she offers “timely and timeless lessons” about
freedom of speech and the separation of church and state.
She was, he writes, a “bulwark against the entry of religious
extremists into the corridors of power and education.” Perhaps so, but such claims feel a bit too grand. Royall is better
understood as a minor literary figure—and a first-class
American eccentric.
Ms. Kirkpatrick, a former deputy editor of the Journal’s
editorial page, is the author of “Thanksgiving: The Holiday
at the Heart of the American Experience.”
Coming in BOOKS this weekend
The Mystery of President McKinley • Molly Keane’s Irish
revival • When Hume met Smith • John Banville revisits
Henry James • Is DNA really destiny? • Clifton Fadiman
and Co. • New Sherlock Holmes adventures • & more
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A14 | Friday, November 3, 2017
OPINION
REVIEW & OUTLOOK
H
Half a Tax Reform
ouse Republicans released their tax bill at each parent and another $300 for each “nonlong last Thursday, and we wish we could child dependent.” The credits would phase out
say it repeats the Reagan reform of 1986. for married couples at $230,000 of income. Does
It isn’t close. The Ways and
anyone think a mid-level manA pro-growth business ager at J.P. Morgan deserves a
Means draft is instead a muchneeded and pro-growth reform
to raise children?
plan but no growth on subsidy
of business taxes marred by a
The House also gradually
the individual side.
mess on individual taxes that
makes more of the $1,600
makes that part of the code
credit refundable. In other
even worse than it is now.
words, this will be a check in
i
i
i
the mail for those who owe nothing in taxes,
The good news is that the House finally which discourages work. The family credits cost
grasps the nettle of corporate-tax reform that $640 billion over 10 years in lost revenue with
Barack Obama ducked and has hurt the U.S. zero growth payoff. To make up the difference,
economy for years. Ways and Means cuts the top the House keeps the top personal rate at 39.6%,
corporate rate to 20% from 35%, which would on top of the 3.8% ObamaCare surcharge that Remake the U.S. more competitive across the globe publicans failed to repeal. This would become
(Ireland’s rate: 12.5%). The U.S. would move to the fourth tax bracket and kick in at $1 million
a territorial system that taxes income where it for couples—half that for individuals—with 12%,
is earned, and profits already earned overseas 25% and 35% brackets below.
would be invited back at a discount: 12% for cash,
This top rate is a surrender to Democratic
5% for illiquid assets.
class warriors, though Republicans also fear that
This should stop the run of U.S. business “in- President Trump would sandbag them. No Memversions” overseas, while making America more bers want to vote for a lower top rate and then
welcoming to investment. The rate cuts would have Mr. Trump tweet that they’re “mean,” as
be permanent, which means more certainty for he did on health care. This is where presidential
business. Another growth boon is 100% business flightiness and lack of principle have a policy
expensing for five years, which Congress would cost. Ideological surrender also gets Republicans
face pressure to continue in 2023.
nothing politically as Democrats are still attackThe bill also reduces the top rate to 25% on ing the House plan as a sop to the rich.
“pass through” businesses that now pay at the
Here and there the House plan includes some
individual rate of 39.6%. This is an enormous tax good news on individual loopholes, such as elimcut, but one large wrinkle is who qualifies to pay inating the state and local deduction. The bill
this rate. The draft includes complex rules to carves out an exception for property taxes,
sort that out, and the trick is to treat all busi- capped at $10,000, to win over New York and
nesses fairly without creating a loophole that California Republicans, if the House can hold
lets doctors and consultants pay the lower rate. that cap. Another good move is a $500,000 cap
Republicans should not want to defend Wall on mortgage interest for new homes, and no
Street lawyers paying a lower rate than wage more tax breaks for second residences. The Realearners in Omaha.
tors will go thermonuclear, but then they refused
The House business cuts take place immedi- to support the House blueprint that left the deately, but one danger is that the Senate may duction untouched.
phase-in the rate cuts as a way to “save” money.
The overall impact of the individual tax
This would give companies an incentive to delay changes is little reform but more income redisinvestment until lower rates kick in, as George tribution. The long-term damage to the tax-cutW. Bush learned the hard way in 2001 before he ting cause will also be considerable. Adding
was able to fix the blunder in 2003.
credits and deductions for individuals makes
And speaking of phase-ins, the House would rate-cutting that much harder since the affluent
repeal the death tax—six years from now. The pay the vast bulk of all income taxes. The divorce
bill would immediately double the exclusion to of “pass through” and personal income rates will
$10 million. But a 40% fee for kicking the bucket also make it even harder to reduce individual tax
is double taxation and barely raises revenue— rates below 39.6%—ever.
i
i
i
less than 1% of Treasury’s annual haul—in part
Kevin Brady and Paul Ryan, the chief House
because the megarich like George Soros put their
money in family foundations that let them es- tax writers, understand the weaknesses in their
cape tax. Death tax repeal is among the bill’s im- plan. But the GOP is trapped in an iron cage of
portant pro-growth planks, and we hope the Beltway process. The party has bowed to the
class-warfare crowd that says the bill cannot
Senate retains it.
i
i
i
change the distribution of who pays taxes. The
The dispiriting news is on the individual side. Senate’s budget procedure allows the GOP to
The House would double the standard deduction pass the package with 51 votes, but the Byrd Rule
to $12,000 for individuals and $24,000 for mar- says a bill can’t add to the deficit after 10 years.
ried couples. This would improve simplicity for These twin realities mean the GOP has compromillions, and it compensates for the bill’s elimi- mised with itself to water down reform.
nation of the personal exemption. But nearly
The pro-growth business reform is still worth
half of American filers already owe no income the effort, but this assumes the plan doesn’t get
taxes, and the larger deduction would make the worse as it moves through the House floor and
federal fisc even more dependent on a smaller Senate. If Republicans in the upper chamber
pool of taxpayers.
erode the growth elements with phase-ins and
This is far better than the House bill’s new more redistribution, they’ll reduce the bill’s eco“family credit,” which increases the child credit nomic impact, which will mute the political bento $1,600 from $1,000 in a forlorn attempt to ap- efits. If the GOP passes something called tax repease the income redistributionists of the right form and there are no benefits to growth and
like Senators Mike Lee and Marco Rubio. The incomes, Republicans will pay the political price
credit would also offer an additional $300 for in 2018 and 2020.
P
Mnuchin Gets His Man
resident Trump on Thursday chose JeYet Mr. Trump has been telling everyone that
rome Powell to run the Federal Reserve, he chose Mr. Powell over Kevin Warsh and John
but the other big winner is Steven Taylor because he likes lower interest rates.
Mnuchin. The Treasury SecreThis won’t help Mr. Powell’s
The Senate needs to
tary lobbied hard for Mr. Powtask at the Fed, especially if
ell on grounds that he was
markets test his fortitude. The
do
some
vetting
of
more open to Administration
paradox of a hawkish moneFed nominee Powell.
influence than the other leadtary reputation is that it can
ing candidates. This may be
buy market credibility that
unfair to Mr. Powell, but it
sometimes allows a chairman
does raise questions about Mr. Powell’s inde- to influence policy with “open mouth” operapendence and capacity for the job.
tions rather than raising rates. Mr. Powell will
Mr. Powell has spent more than five years on start out with a credibility deficit.
the Fed’s Board of Governors, so he knows how
Mr. Powell might have a more deregulatory
the place works. He has few enemies, but he has bent toward financial markets than Ms. Yellen
left barely a policy footprint. His speeches are has, but how much more isn’t clear. On Capitol
notable for endorsing whatever official Fed pol- Hill he recently called Treasury’s white paper
icy was at the time. He’s never dissented at the on financial regulation “a mixed bag.” He wants
Open Market Committee (FOMC), which can be to ease the Volcker rule, which bars certain
seen as loyalty to the chairman or a lack of per- trading at banks and needs a rewrite. It isn’t
sonal conviction. This is especially notable in clear where Mr. Powell stands on bank capital
a period when other governors and regional or regulating nonbanks.
bank presidents opine on everything.
Our bigger concern is Mr. Powell’s capacity
This suggests that Mr. Powell’s views reflect to manage in the next financial crisis. Mr. Powthose of the monetary status quo under current ell’s years on the board have been relatively
Chair Janet Yellen, and perhaps this is what calm as markets repaired themselves after the
Messrs. Mnuchin and Trump want. But in that panic and recession. He missed the 2008 panic
case Mr. Trump should have continued with Ms. and the quantitative-easing debates, and his
Yellen, who at least has been in charge. Mr. views by all accounts mattered little to the Fed’s
Powell will have to establish his authority with major decision-makers.
the other FOMC Members and the Fed staff,
One certainty is that the next four years will
which is dominated by economists with a mone- be more volatile, especially if growth accelertary policy model that requires a firm hand to ates, interest rates rise and as the Fed shrinks
supersede.
its balance sheet. Mr. Powell has some experiThis means Mr. Trump is buying monetary ence in domestic financial markets but not in
policy rooted in the Phillips Curve trade-off be- international currency and emerging markets.
tween inflation and unemployment. Once the The combination of Mr. Powell at the Fed and
economy hits full employment, in this view, the Mr. Mnuchin at Treasury isn’t exactly the finanthreat of inflation invariably looms and interest cial equivalent of SEAL Team 6.
rates must rise.
Sometimes people rise above their résumés,
The Fed’s median view in September pro- but Mr. Powell’s blank intellectual slate warjected growth of merely 2.1%% in 2018, 2% in rants thorough Senate vetting. While a Presi2019 and 1.8% beyond. The Fed models give lit- dent deserves significant deference on his Cabitle growth credit to tax-cutting and deregula- net choices, the Fed chairman’s growing power
tion. If growth surprises on the upside, the Fed over finance and even fiscal policy requires
staff will want to raise rates faster than now an- more scrutiny. The markets need to see if Mr.
ticipated.
Powell is up to the job.
LETTERS TO THE EDITOR
What Should the Top Income-Tax Rate Be?
Regarding your editorial “A Million-Dollar Mistake” (Oct. 28): I think
the potential adverse effects on investment and risk-taking from a potential fourth income-tax bracket materially higher than 35% on adjusted
gross income above $1 million could
be easily mitigated by an “Alternative
Maximum Tax.” The new AMT would
limit combined federal income and
payroll taxes to 33% of gross income
with no deductions for anything. For
taxpayers who actually pay a 33% effective federal tax rate, their top marginal income-tax rate would then be
limited to 33%. Any added complexity
can be easily handled by tax preparation software.
BARRY CAROL
Aberdeen, N.J.
Your editorial pages ushered along
the call to eliminate the deduction for
state and local taxes. This will increase the effective tax rate for millions of working families who never
come close to making a million dollars in a single year. And it won’t just
be in blue states. Will their incentive
to work harder be harmed? Eliminating this single deduction won’t generate near enough revenue to fund
more “credits.”
STEVE WALDE
Rancho Santa Fe, Calif.
Will the GOP ever learn that trying
to placate the Democrats on tax reform, or any other issue, is a fool’s
errand? The Democrats never will be
satisfied, so why even try? If the middle class believes it is getting beneYou advocate eliminating the mort- fits from tax reform, only middlegage interest and state/local tax declass and wealthier class warriors
ductions as “the better way to soak
will whine that there is no millionthe rich.” To avoid hurting the middle aires’ tax.
class I suggest not eliminating the
When will the GOP and the presiloopholes but capping the deductions dent finally demonstrate the courage
at $15,000 a year for local/state taxes of their convictions? Tax reform will
and $15,000 a year for mortgage inlikely make or break the GOP in the
terest. Caps would both protect the
2018 elections. Tax reform presents
middle class and generate sufficient
the perfect opportunity to demontax revenue to partially offset cuts in strate why the GOP is not just Demothe corporate tax.
crats light.
ALAN FRIEDMAN
GERALD KATZ
Margate, N.J.
Edwards, Colo.
Morningstar Ratings: A Guide, Not a Promise
I strongly disagree with the assertions made in “Mutual-Fund Ratings
Are Not What They Seem” (page one,
Oct. 26). Your own analysis found
that 5-star funds outperform 4-star
funds, which outperform 3-star funds,
which outperform 2-star funds, which
beat 1-star funds. Similarly, your own
findings on the Analyst Rating support the same conclusion—that it
pointed investors toward a universe
of funds that have a probability of
better performance. That’s not a mirage. That’s tilting the odds of choosing a good fund in investors’ favor.
The Journal also said that “while
funds rated highly by the Morningstar analysts did better, the differences among the funds weren’t
large.” The fact is that small differences matter over time. Our ratings
don’t guarantee success—no ratings
system does—but again, they tilt the
odds in investors’ favor. That adds
value and creates meaningful gains
for investors over time.
We have always said the star rating is a starting point for research
and shouldn’t be the sole basis for assessing a fund. Nevertheless, some investors (or the advisers who represent them) still take a shortcut
approach, which denies them the
benefit of a more thorough research
and fund-selection process. Our goal
is to help investors achieve their financial goals. If we had reason to believe a rating wouldn’t further that
mission, we wouldn’t publish it—period. If we had reason to believe investors couldn’t effectively apply a
rating in practice, no matter how well
intended, we wouldn’t make it available—period. We will continue to
serve the interests of investors in a
transparent, independent manner.
KUNAL KAPOOR
Chief Executive
Morningstar Inc.
Chicago
One Generation Subsidizes
Another’s Health-Care Bill
Regarding Allysia Finley’s “How
Democrats Learned to Love Insurance
Companies” (op-ed, Oct. 31): Hidden
taxes, cost shifting and federal subsidies have totally distorted the free
marketplace. The Affordable Care Act
narrowed the actuarial tables of the
ratio in the cost of insuring a 64-yearold to a 21-year-old from six-and-ahalf (in some markets eight) to a
maximum of three, creating a hidden
tax on everyone under the age of 35.
Perhaps this was because millennials
don’t vote as often as baby boomers
or maybe it was the only way that the
architects of the plan could subsidize
unhealthy 55- to 64-year-olds of moderate or poor income. Baby boomers
don’t subsidize the higher cost of automobile insurance for young people,
why should they subsidize us?
As Ms. Finley points out, we make
much more money than they do. We
also, on average, have saved more and
have greater assets. Can anyone in
Washington explain to me why our
kids and grandkids are subsidizing my
and every other baby boomers’ health
insurance?
HOWARD C. MANDEL, M.D., FACOG
Los Angeles
Dr. Mandel is a member (unpaid) of
the Los Angeles City Health Commission.
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
Morningstar provides a tool for investors, not a recipe for success. Yes,
there are many individual examples
of 5-star funds that crash and burn.
Top-performing funds are more likely
to adopt investment strategies that
test the limits of their style category.
This results in volatility and mean reversion in performance. Advisers
with overreliance on Morningstar ratings to cover their backsides could
avoid adverse results with more careful research or more effective diversification of client portfolios. However,
the Journal’s analysis also suggests
that the best way to increase the
odds of buying a fund that will generate above-average performance in the
coming three years is to buy a fund
rated 5 stars today; 39% of the 5-star
funds in your sample were rated 4 or
5 stars three years later.
PROF. PAUL BOLSTER
Northeastern University
Boston
Rather than stargazing, I suggest a
simpler approach—choose diversified
index funds with low fees. That’s
what I do, and all of the funds in my
portfolio receive 3 and 4 stars from
Morningstar. It’s elementary: Lowcost index funds outperform their
peers over time due to their lower
fees.
CASEY MCCLINTOCK, CFA
Walnut Creek, Calif.
The best way for a high-performing stock or mutual fund to become a
middle-performing stock or mutual
fund is for a lot of people to invest in
it.
STEVEN MARTIN, CPA
Richardson, Texas
E Pluribus Unum: It’s Past
Time to Drop the Hyphens
Thank you, Michael Meyer, for
pointing out what should be obvious
(“‘What Are You?’ They Ask My Son,”
op-ed, Oct. 31). Continuing to identify
people as Korean-American, AfricanAmerican, Italian-American, etc.,
weakens what has historically been
one of this country’s greatest
strengths: the fact that we are all
Americans. My wife and I immigrated
here from the U.K. over 40 years ago
and are now U.S. citizens. Our U.S.born son, who was also a U.K. citizen
through his parents, gave up his U.K.
citizenship when he was commissioned
as a second lieutenant in the U.S. Army
in 2002. I held our Colombian-born
daughter in my arms at her naturalization ceremony. We do not regard ourselves as English-Americans or Colombian-Americans but simply as four
proud Americans. Period.
CHARLES C.J. PLATT
Mattapoisett, Mass.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“I’m thinking about getting
the band back together.”
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | A15
OPINION
Prepare Yourself for Jihad 3.0
By Husain Haqqani
JEWEL SAMAD/AFP/GETTY IMAGES
T
uesday’s terrorist attack in
New York City, committed
by an immigrant from Uzbekistan, is a reminder
that radical political Islam
won’t end with the recent defeat of
Islamic State in Raqqa.
Just as the fall of the Taliban in
Afghanistan soon after 9/11 did not
mark the end of al Qaeda, extremist
forces in the Muslim world will continue to resuscitate themselves in
other forms, in other theaters. If al
Qaeda was Jihad 1.0 in our era, and
ISIS was Jihad 2.0, we should now
prepare for Jihad 3.0. Islamism will
continue to be a U.S. national-security
concern for years to come.
The New York attacker, Sayfullo
Saipov, did not match the standard
profile of a jihadi terrorist. He was
likely self-radicalized, did not overtly
belong to a major terrorist group, and
would not have been denied entry under President Trump’s “travel ban”
due to his country of origin.
In trying to re-create an Islamic
state, radical Islamists draw inspiration from 14 centuries of history. It is
important to understand the various
Muslim “revivalist” movements, involving various degrees of violence
and challenges to the global order of
the time. Contemporary radicals often
reach into the past to find models for
organization and mobilization
It is not a coincidence that al
Qaeda (literally “the base”) tried to
establish itself first in Sudan before
finding a home in Afghanistan. Both
Sudan and the Afghanistan-Pakistan
border region had experienced jihad
against European powers resulting in
short-lived Islamic states in relatively
recent times.
ISIS’ choice of Syria and Iraq to declare a caliphate was also a function
of the Islamist reverence for historic
precedents. Damascus was the capital
of the Umayyad Caliphate (661-750),
The rental truck used in Tuesday’s New York attack.
and Baghdad was the base of the Abbasid Caliphate (750-1258).
In Sudan, Muhammad Ahmad declared himself Mahdi (“the reviver”)
and established an unrecognized
state from 1885-99 before being defeated by the British. The Mahdists
terrorized locals, persecuted religious
Radical Islamic terrorists
will revive their movement.
The U.S. needs to focus on
defeating the ideology.
minorities (notably Coptic Christians), revived the slave trade, and
challenged Egypt and its protector,
Britain. The death of the movement’s
founder in 1885 did not mark the end
of jihad.
Eventually, the British defeated
the Mahdists militarily with an Anglo-Egyptian force. They also used
traditional religious and tribal structures and institutions to challenge
Mahdist ideology. Today the Mahdists exist as a Sufi order rather than
an extremist group.
Similarly, the Afghanistan-Pakistan
border area became the base for the
jihad movement of Syed Ahmed
Barelvi in 1826. Just as Osama bin
Laden moved from Saudi Arabia, giving up a comfortable life, Syed Ahmed
came from northeastern Indian nobility. He mobilized funds throughout
the subcontinent, moved it through
the hawala system, and bought arms
to use against the British-aligned Sikh
empire along the border of modernday Afghanistan.
Although he was killed in 1831,
ending his short-lived Islamic state,
Syed Ahmed’s followers continued
their random stabbing campaign
against the British for another 70
years. Driving cars or trucks into
crowds is today’s equivalent of that
terrorist campaign.
Eventually, the British deployed
military and intelligence means to
defeat the jihadists. They also discredited the terrorists’ beliefs by supporting Muslim leaders who opposed
radical ideas.
In the Middle East, the Ottoman
Empire had less success in dealing
with the Wahhabis, who fought the
empire for control over the Arabian
Peninsula through much of the 19th
century. After creating the modern
state of Saudi Arabia in 1932, the
Wahhabis modified their approach to
international relations, though not
their theology. Al Qaeda and ISIS
manifest the more radical beliefs of
the Wahhabis and, though opposed
by the modern state of Saudi Arabia,
can be construed as a continuation of
their Wahhabi teaching.
The U.S. is not capable of wholescale changes to Islamic theology, nor
is it in America’s purview. And portraying the contemporary struggle as
a battle with Islam risks making the
world’s Muslim population—1.8 billion people—Islamic State’s recruiting pool.
Islam means different things to
different people and has been practiced in many ways among various
sects across the world and throughout time. The doctrine of jihad is
open to interpretation, much like the
Christian notion of “just war.” Muslims who consider Islam a religion,
not a political ideology, and who pursue piety, not conquest, remain important partners for the U.S.
The U.S. must re-evaluate its alliances in the Muslim world based on
whether or not partners encourage
extremism. Saudi Arabia’s recent
avowal to teach moderation in religion, emulating the United Arab
Emirates’ campaign against radical Islamism, deserves American support,
as does Morocco’s decision to work
with the Holocaust Memorial Museum to educate its people about the
Holocaust and teach tolerance.
On the other hand, Qatar’s support
of the Muslim Brotherhood and Turkey’s decision to include jihadi teachings in its school curriculum indicate
their support of radicalism.
Above all, the U.S. must focus on
defeating radical Islamist ideology,
not just its periodic manifestation in
terrorist attacks.
Mr. Haqqani, director for South
and Central Asia at the Hudson Institute in Washington, D.C., was Pakistan’s ambassador to the U.S.,
2008-11.
Once a Rising Star, Flint’s Mayor Faces a Recall
By Jillian Kay Melchior
K
aren Weaver became mayor
of Flint, Mich., two years ago,
in the midst of the city’s water crisis. Within months she was a
rising star in the Democratic Party.
She hosted Hillary Clinton on a campaign visit to Flint in February 2016.
President Obama came to see her
that May, and in July the mayor delivered an early-evening address at
the Democratic National Convention
in Philadelphia.
Local residents came to
a town hall to complain
about tainted water. Six
of them ended up in jail.
Back home, however, her tenure
has proved controversial. Arthur
Woodson, who supported her in 2015,
began collecting signatures in April
for a recall effort. He is one of 17 candidates running against Ms. Weaver
in next Tuesday’s election. The outcome is hard to predict: The winner
will be whoever gets a plurality, including the incumbent.
Ms. Weaver’s administration has
faced allegations—all of which she
denies—of unethical behavior and
police abuse. Two of her former staffers filed federal whistleblower lawsuits. Former City Administrator
Natasha Henderson alleged she was
fired shortly after another mayoral
assistant came to her in tears and
said Mayor Weaver had asked her to
divert Flint’s water-crisis donations
to the mayor’s own tax-exempt political fund, Caring for Flint. Former City
Attorney Stacy Erwin Oakes claims
the mayor fired her after “she became aware and spoke out against
perceived illegal and actual illegal
acts” in the mayor’s office.
A judge summarily dismissed Ms.
Henderson’s lawsuit; she has appealed
the ruling. Another judge ordered the
parties in Ms. Oakes’s case to try to
negotiate a settlement. Ms. Weaver
told me the accusations are false: “I
have not done anything dishonest.”
Last spring at a mayoral town hall
on the water crisis, Flint police arrested six residents of the city, including 56-year-old Tony Palladeno
Jr. and his wife. “We spoke up, we
spoke out, and we got arrested for
it,” Mr. Palladeno told me. He is also
among Ms. Weaver’s challengers on
next week’s ballot.
Flint police said the arrests were
for disorderly behavior and attempts
to interfere with law enforcement. But
no charges have been filed. “I wasn’t
going to criminalize that conduct,”
Genesee County’s prosecuting attorney, David Leyton, told me. “Folks
came out to voice their displeasure
with the water situation, and I didn’t
find anything overly egregious that
would lead to criminal charges.”
Ms. Weaver’s critics also allege
both bribery and police abuse in connection with the recall effort itself.
This past summer, the mayor filed a
lawsuit seeking to call off the recall
and claiming petitions might have
been forged or doctored. In testimony and news interviews, some
Flint residents said police had come
to their homes and questioned them
about their pro-recall signatures.
The judge in Ms. Weaver’s case
asked the mayor’s attorney why Flint
police officers had also been serving
subpoenas in the civil suit—a task
that, under Michigan statute, is the
purview of either the county sheriff
or civil process servers. “I can’t
speak to that, judge,” the lawyer answered. “Wow,” the judge replied.
“That may affect credibility issues on
this case.”
Two petition circulators, Lakeshia
Williams and Nancy Burgher, testified amid the mayor’s case that City
Administrator Sylvester Jones tried
to bribe them to stop collecting signatures in support of a recall election. Mr. Jones declined my interview
request, referring me to an article
that quoted him as saying the claims
were “just not true.” He resigned Oct.
20, citing job stress.
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Ms. Williams told me that Flint police also tried to intimidate her. She
called to complain that cops were
questioning neighbors who had signed
the recall petition. She was invited to
the station, where an officer led her to
an interrogation room, read a Miranda
warning, and accused her of falsifying
petitions, Ms. Williams said. “He said
he was going to lock me up, and I was
so scared,” Ms. Williams said, adding
that she did nothing wrong.
Mayor Weaver eventually dropped
her lawsuit, but the Flint Police Department said it is still actively investigating whether the recall effort
involved criminal fraud. A police
spokesman told me Ms. Williams
was read her Miranda rights “for her
own protection” after she “began to
say things that may ultimately implicate her in a crime for which the
penalty was jail.” The spokesman
added that the department has since
submitted paperwork asking the
county prosecutor to issue a warrant
for Ms. Williams.
Genesee County Clerk John Gleason
told me he believes the police department’s visits to petition signers
amounted to voter intimidation and
harassment. “I really am beseeching
the state attorney’s office to come in
and give a complete and thorough review of the police department,
whether their first concern was public
safety or saving a political office.”
Ms. Weaver would not answer specific questions about the police department. “I haven’t had the police
do anything,” she told me. “There’s
been nothing inappropriate that’s
gone on between my office and their
office.” She said under her watch
Flint has improved water quality and
replaced thousands of lead-tainted
service pipes, put more nurses in the
schools, and hired new firefighters.
The recall drama is “a distraction at
best,” she said.
How does she explain the opposition? “I think it’s because I’m a woman,
and I think it’s because I’m black.”
Ms. Melchior is an editorial page
writer for the Journal.
William Coleman’s Legacy
By Stephen Breyer
A
t the National Cathedral Saturday, many gathered—civil
rights leaders, members of
Congress, cabinet members, generals,
judges, three Supreme Court justices,
lawyers young and old—to celebrate
the life of our friend William T. Coleman Jr. who died in March at 96.
Among others, Colin Powell, Vernon
Jordan and I spoke; Denyce Graves
sang “Amazing Grace.”
Bill Coleman was truly a “man for
all seasons.” His enormous natural
talents and hard work helped him become a member of the Harvard Law
Review; graduate from Harvard Law
School with its top award, the Fay
Diploma; and become a law clerk to
Justice Felix Frankfurter. Those qualities later made him a leading lawyer,
a wise counselor, President Ford’s
transportation secretary, a recipient
of the Medal of Freedom.
Yet to describe Bill simply as a
lawyer and public servant would be
misleading. He was an American of
color who grew up at a time when
that meant hardship and humiliation
at the hands of a society that embraced invidious discrimination and
legalized segregation. It was a world
where his Philadelphia high school
would disband the swim team rather
than have him as a member; where
he could not enter a U.S. Army officers club because of his race; where
in our nation’s capital he struggled to
find a restaurant where he could
have lunch with his fellow Supreme
Court law clerks; where, despite his
prodigious abilities, he had difficulty
finding an initial job—and more and
much worse beside.
What was Bill Coleman’s reaction?
Don’t agonize, just get down to work
to rid our nation of this malignant
disease. His method? Use what is
best about America, its commitment
to equal justice under law, to end
what was worst about America, its
blatant racial discrimination.
Bill worked directly. He helped integrate that officers club and end legal segregation in America. In a 1949
memo to Justice Frankfurter, Bill explained clearly why and how legal
segregation was unconstitutional. And
on the cover of Thurgood Marshall’s
brief in Brown v. Board of Education,
a brief that changed the course of history, is the name, among others, of
William T. Coleman Jr.
He also worked indirectly through
his powerful example. Those who saw
Bill Coleman in action would understand that racial prejudice is not simply evil but absurd. As a cabinet member, as wise counselor to many
presidents and countless young lawyers, as a lawyer-statesman, who, like
Henry L. Stimson, saw law as a profession “imbued with a spirit of public
service,” Bill was a nonprejudiced
“first.” He was dedicated to cultivating
what he called in 2010 “a new generation of leaders”—leaders who both are
pragmatic problem-solvers and “are
firmly rooted in strong principles that
underlie the greatness of the American experiment.” Bill’s life shows the
new generation the way.
“It is our duty,” Cicero tells us, “to
honor and revere those whose lives
are conspicuous for conduct in keeping with their high ethical standards
and who, as true patriots, have rendered . . . efficient service to their
country.” So let us contemplate the
life of William T. Coleman Jr., the life
of a true patriot, a good citizen, a
great American.
Justice Breyer is an associate justice of the U.S. Supreme Court. This
article is adapted from his eulogy at
the National Cathedral Oct. 28.
A Deceptive
New Report
On Climate
By Steven E. Koonin
T
he world’s response to climate
changing under natural and human influences is best founded
upon a complete portrayal of the science. The U.S. government’s Climate
Science Special Report, to be released
Friday, does not provide that foundation. Instead, it reinforces alarm with
incomplete information and highlights the need for more-rigorous review of climate assessments.
A team of some 30 authors chartered by the U.S. Global Change Research Program began work in spring
2016 on the report, “designed to be
an authoritative assessment of the
science of climate change.” An early
draft was released for public comment in January and reviewed by the
National Academies this spring. I, together with thousands of other scientists, had the opportunity to scrutinize and discuss the final draft when
it was publicized in August by the
New York Times. While much is right
in the report, it is misleading in more
than a few important places.
True, the U.S. has
had more heat waves
in recent years—but no
more than a century ago.
One notable example of alarmraising is the description of sea-level
rise, one of the greatest climate concerns. The report ominously notes
that while global sea level rose an average 0.05 inch a year during most of
the 20th century, it has risen at about
twice that rate since 1993. But it fails
to mention that the rate fluctuated
by comparable amounts several times
during the 20th century. The same
research papers the report cites show
that recent rates are statistically indistinguishable from peak rates earlier in the 20th century, when human
influences on the climate were much
smaller. The report thus misleads by
omission.
This isn’t the only example of
highlighting a recent trend but failing
to place it in complete historical context. The report’s executive summary
declares that U.S. heat waves have
become more common since the
mid-1960s, although acknowledging
the 1930s Dust Bowl as the peak period for extreme heat. Yet buried
deep in the report is a figure showing
that heat waves are no more frequent
today than in 1900. This artifice also
appeared in the government’s 2014
National Climate Assessment, which
emphasized a post-1980 increase in
hurricane power without discussing
the longer-term record. The National
Oceanic and Atmospheric Administration recently stated that it has
been unable to detect any human impact on hurricanes.
Such data misrepresentations violate basic scientific norms. In his celebrated 1974 “Cargo Cult” lecture,
the late Richard Feynman admonished scientists to discuss objectively
all the relevant evidence, even that
which does not support the narrative.
That’s the difference between science
and advocacy.
These deficiencies in the new climate report are typical of many others that set the report’s tone. Consider the different perception that
results from “sea level is rising no
more rapidly than it did in 1940” instead of “sea level rise has accelerated in recent decades,” or from
“heat waves are no more common
now than they were in 1900” versus
“heat waves have become more frequent since 1960.” Both statements in
each pair are true, but each alone
fails to tell the full story.
Several actions are warranted.
First, the report should be amended
to describe the history of sea-level
rise, heat waves and other trends fully
and accurately. Second, the government should convene a “Red/Blue” adversarial review to stress-test the entire report, as I urged in April. Critics
argue such an exercise would be superfluous given the conventional review processes, and others have questioned even the minimal time and
expense that would be involved. But
the report’s deficiencies demonstrate
why such a review is necessary.
Finally, the institutions involved in
the report should figure out how and
why such shortcomings survived multiple rounds of review. How, for example, did the National Academies’ review committee conclude that the
chapter on sea level rise “accurately
reflects the current scientific literature
on this topic”? The Academies building
prominently displays Einstein’s dictum
“one must not conceal any part of
what one has recognized to be true.”
Mr. Koonin was undersecretary of
energy for science during President
Obama’s first term and is director of
the Center for Urban Science and
Progress at New York University.
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THE WALL STREET JOURNAL.
A16 | Friday, November 3, 2017
Annual
Meeting
November 13–14,
2017
Washington, D.C.
In a time of political tumult, the new administration in Washington
is already recasting trade relations, health-care policy, tax rates,
regulation and America’s role in the world.
Join The Wall Street Journal as we explore these topics with key
officials, industry leaders and global CEOs.
Speakers include:
Anne Case
Kevin Hassett
Mike Pence
Professor, Economics and Public Affairs
Chairman, White House Council
Vice President of the United States
Emeritus, Princeton University
of Economic Advisers
Wilbur L. Ross, Jr.
Angus Deaton
Jerry Kaplan
Nobel Laureate in Economics;
Adjunct Professor, Stanford University;
Senior Scholar, Princeton University
Author, “Humans Need Not Apply:
Lawrence H. Summers
A Guide to Wealth and Work in the Age
President Emeritus, Harvard University;
of Artificial Intelligence”
U.S. Secretary of the Treasury
Betsy DeVos
U.S. Secretary of Education
U.S. Secretary of Commerce
(1999-2001)
Amy Klobuchar
John Ferriola
U.S. Senator (D., Minn.)
Chairman, President and CEO
Nucor Corporation
Jay Walker
Founder and CEO, Upside;
Chris Liddell
Founder, Priceline.com;
Assistant to the President and Director
Founder, Library of the History
of Strategic Initiatives
of Human Imagination
Technology and the Threat
Steven Mnuchin
Mark Warner
of a Jobless Future"
U.S. Secretary of the Treasury
U.S. Senator (D., Va.)
Martin Ford
Author, "Rise of the Robots:
CEO Council membership is by invitation.
Learn more at CEOCouncil.wsj.com
Proudly supported by:
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5125
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Apple Shows Greatest Strength in Years
China, iPhone demand
drive profit up 19%;
revenue advances for
fourth straight period
BY TRIPP MICKLE
Apple Inc. delivered its best
quarterly growth in two years
with strong sales in all of its
key products and a rebound in
the critical China market as it
prepares to start shipping its
most important new iPhone
model in a decade.
Demand for the iPhone,
which accounts for about twothirds of total sales, along
with an upturn in sales of Mac
computers and iPad tablets
helped Apple deliver its
fourth-consecutive quarterly
increase in revenue and third
quarterly increase in profit,
which rose 19% to $10.71 billion. Shipments of the iPhone
rose 2.6% from a year earlier
to 46.7 million units, and
China sales rose for the first
time since early 2016.
Consistent revenue gains,
combined with anticipation for
a jump in iPhone sales in 2018,
have helped send Apple’s stock
up about 50% over the past
year through Thursday’s close
and pushed its market value to
over $860 billion, after a steep
decline in 2016 because of
weak China revenue and
iPhone 6s sales.
Shares rose about 3% in after-hours trading.
Questions remain about Apple’s immediate future. The
iPhone 8 and 8 Plus, which
started shipping to customers
Sept. 22, had the weakest initial sales of any new iPhone in
years, according to estimates
by market-research firms.
The iPhone X, which ships
Friday and features facial recognition and an edge-to-edge
display, has been dogged by
production challenges that delayed manufacturing at least
one month and hounded by
questions about its $999 price
tag. Customers who ordered
iPhone Xs online in advance of
Friday were told there would
be long shipping delays.
Apple Chief Executive Tim
Cook said the two iPhone 8s
have outsold other models
since shipping but added that
he never expected sales to exceed initial sales of last year’s
iPhone 7 and 7 Plus because it
is releasing three phones this
year. He said that Apple had
earlier planned to release the
iPhone X even later than Nov.
2, but decided to “be very bold
and do it sooner.” He declined
to offer specifics.
Mr. Cook acknowledged
Please see APPLE page B2
–20
Heard on the Street: iPad and
Mac also supply help............B12
Note: Fiscal year ended Sept. 30
Source: the company
Comeback Trail
After a downturn in 2016, Apple reported its fourth straight quarter
of revenue growth. Change from previous year:
30%
4th quarter
$52.58B
▲12%
20
10
0
–10
FY2014
’15
’16
’17
THE WALL STREET JOURNAL.
ELAINE THOMPSON/ASSOCIATED PRESS; COLIN E. BRALEY/ASSOCIATED PRESS (INSET)
Venezuela
Courts
Showdown
On Bonds
BY JULIE WERNAU
AND ANATOLY KURMANAEV
A backlash over player
protests doesn’t appear to
have hurt TV ratings.
NFL Ratings Culprit: Too Much Football
Media executives are rallying around an explanation for
the National Football League’s
declining TV ratings: too much
football available in too many
places.
By Joe Flint,
Alexandra Bruell
and Amol Sharma
Total NFL ratings through
the first seven weeks have declined 5% compared with last
year and about 15% versus the
same stretch in 2015, which
was a very strong season for
the league.
The league’s aggressive media strategy in recent years has
led to a flurry of new offerings:
an increase of Thursday night
games; games available on Verizon mobile phones and Amazon’s streaming service; highlights on the NFL-owned cable
channel RedZone and socialmedia platforms; and full-game
replays on an NFL subscription
service called GamePass.
The fear among TV executives is that this has backfired,
devaluing the programming.
“I think there’s a question
mark for the NFL, which is just
to think hard about how they
are licensing,” James Murdoch,
chief executive officer of 21st
Century Fox, said at a confer-
Anthem Effect (or Noneffect)
Except for a blip in Week 2, viewership of NFL games in ‘red states’ hasn't declined more than in ‘blue
states.’ Both categories of states have retained about the same audience from Week 1 of this year.
Change from a year earlier in share of TVs tuning
to NFL games for minimum of 10 minutes a week
Red states
0%
–5
Percentage of Week 1 audience* retained (2017)
100%
95
–10
90
–15
September 23-24
Trump tweeted for
Americans to refuse to
attend NFL games
–20
–25
Week 1
2
3
4
5
6
7
85
80
Week 1
2
3
4
5
6
7
*Audience is TV screens tuned to NFL for at least 10 min per week. Note: Red states are defined as those carried by President
THE WALL STREET JOURNAL.
Donald Trump in the 2016 election. Source: Samba TV
ence last week. The Fox network carries Sunday afternoon
games. 21st Century Fox shares
common ownership with Wall
Street Journal parent News
Corp.
If the ratings erosion continues, media executives could
pressure the league for better
economic terms, but they
won’t get a shot for a while.
Most of the league’s major TV
contracts don’t come up for renewal for four or five years.
Collectively, major media part-
STREETWISE | By James Mackintosh
What Martin Luther
Says About Capitalism
Five centuries ago this
week, Martin
Luther started
the Protestant
Reformation
by hammering his 95 theses
to a church door in Wittenberg, Germany.
His legacy raises questions that resonate for investors today: Can Communist
China become a rich country? And does the political
swing toward populism
threaten economic growth?
Luther matters to investors not because of the religion he founded, but because
of the cultural impact of chal-
Blue states
lenging the Catholic Church’s
grip on society. By ushering
in what Edmund Phelps, the
Nobel-winning director of Columbia University’s Center on
Capitalism and Society, calls
“the age of the individual,”
Luther laid the groundwork
for capitalism.
The question is, does capitalism needs individualism?
Sociologist Max Weber popularized a supposed link between Protestantism and
“the spirit of capitalism” at
the start of the 20th century,
noting that after the Reformation, Protestant countries
in Northern Europe grew
Please see STREET page B10
ners spend about
$7.3 billion a year on
NFL rights.
Other
theories
abound about what
could be contributing to the
decline, from frustration with
the pace of games and the lack
of compelling story lines to the
overall pressure on traditional
TV viewing as consumers drop
cable packages in favor of digital services.
Another theory is that the
controversy over players pro-
INSIDE
testing during the national anthem
has turned off
viewers. That is the argument
of NFL sponsor Papa John’s,
for example, which said
Wednesday that the league’s
lower ratings have reduced the
T-Mobile, Sprint Revive Talks
BY RYAN KNUTSON
AND DANA MATTIOLI
TRUMP-BACKER
MERCER QUITS
HELM AT FUND
FINANCE, B10
TWITTER
LOSES TRUMP
FOR 11 MINUTES
SOCIAL MEDIA, B4
pizza chain’s advertising exposure and hurt its sales.
Industry executives expect
that a boycott of NFL games by
fans upset over the protests
would show up as a larger
viewing decline in “red
states”—those carried in the
2016 election by President
Donald Trump, who has lambasted players on social media
for kneeling during the anthem
to protest racial and social injustice.
A recent HBO Real Sports/
Marist poll showed that 84% of
Trump supporters believe the
NFL should require players to
stand for the anthem;
only 27% of Democrats
hold that view.
Yet there is no evidence of a significant red-state boycott, according to
data compiled for
The Wall Street
Journal by measurement firm
Samba
TV,
which analyzes data
from 13.5
m i l l i o n
smart TVs across the country.
Through seven weeks, the
share of TVs tuning in to NFL
games was down 8.7%, on averPlease see NFL page B2
Venezuela’s president said
the cash-strapped South
American country will seek to
restructure its debt, raising
the prospect of a showdown
with bondholders that could
be complicated by U.S. sanctions on key members of the
Venezuelan administration.
In a televised address late
Thursday, President Nicolás
Maduro announced plans to
make a $1.1 billion principal
payment Friday for a bond issued by state-owned oil company Petróleos de Venezuela,
SA that was due Nov. 2.
“We will continue to meet
our obligations,” Mr. Maduro
said.
He added that following
Friday’s payment, he would
seek a voluntary restructuring
of the country’s remaining
debt. Estimates of Venezuela’s
total outstanding debt vary,
with some analysts putting the
figure between $100 billion
and $150 billion.
The development follows
years of increasingly restricted financing options for
Venezuela.
In August, President Donald
Trump issued an executive order prohibiting U.S. institutions from trading new bonds
that would serve to help finance Mr. Maduro’s government, a move aimed at punishing the regime for what the
Trump administration called
human-rights abuses and
state-led corruption.
The sanctions also could
make a debt restructuring difficult or even impossible, according to some sovereign
debt restructuring attorneys,
because they restrict bondholders’ dealings with Venezuelan officials.
Venezuela has many and
varied creditors who are likely
to scramble for limited assets
in complicated legal battles in
the event of a restructuring or
default, some of the attorneys
said.
T-Mobile US Inc. and Sprint
Corp. are working to salvage
their potential blockbuster
merger, people familiar with
the matter said, days after
Sprint Chairman Masayoshi Son
appeared to call off the talks.
T-Mobile made a revised offer, which Sprint is considering,
some of the people said. Terms
of the new offer were unclear.
The two sides could reach a
deal within weeks, the people
said, but the companies could
still fail to agree on deal terms.
T-Mobile Chief Executive
John Legere spoke with Sprint
chief Marcelo Claure on
Wednesday, after a T-Mobile
board meeting in New York
where directors agreed to re-
new their overtures to Sprint
to keep the deal alive, one of
the people said. Mr. Legere
conveyed to Mr. Claure that TMobile and its parent company,
Germany’s Deutsche Telekom
Key to discussions
is how much clout
Sprint’s Masayoshi
Son would have.
AG, didn’t want the deal to fall
apart, this person said.
Sprint’s board discussed the
situation at a meeting Thursday, the people said. Key to
the discussions are Sprint’s
valuation and how much influ-
ence Mr. Son would have over
the direction of the combined
company. Under the previous
deal
structure,
Deutsche
Telekom would have fully controlled the merged firm, and Mr.
Son’s influence would have been
commensurate with SoftBank
Group Corp.’s minority stake.
Mr. Son runs Japan’s SoftBank,
Sprint’s parent company.
Last Friday, Mr. Son decided
to call off the talks after determining that Sprint is too important of a strategic asset to
give up control. Mr. Son believes millions of devices, including robots, will one day be
connected to wireless networks.
On Thursday, Sprint shares
closed at $6.43 a share, giving
the company a market value of
$25.7 billion. T-Mobile has a
nearly $50 billion market value.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
* ****
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
B
Baidu ........................... B3
Blue Apron Holdings
............................. B5,B11
Boeing ......................... B6
Bombardier..................B6
BP................................B6
British American
Tobacco ................... B12
C
Carlyle Group..............A6
Charter Communications
.....................................B5
China Hualian
International Trade B10
CHMT Peaceful
Development Asia
Property..................B10
Citigroup......................B2
CK Asset Holdings....B10
CK Hutchison Holdings
...................................B10
Coca-Cola...................B12
Condé Nast..................B3
Credit Suisse.............B10
DHL..............................B4
Discovery
Communications.......B5
Dow Chemical.............B6
DowDuPont.................B6
P
Papa John's
International.............B1
PG&E...........................A2
PulteGroup................B11
E
Q
Elliott Management ... B3
Qualcomm...................B3
F
R
Facebook..............B4,B11
Fiat Chrysler
Automobiles ............. B4
Forrester Research.....B4
Royal Bank of Scotland
Group.......................B12
Royal Dutch Shell.......B6
H
HNA Group................B11
Home Depot..............B11
I
Inspire Investing.......B12
Interpublic Group........B2
J
Jarden..........................B3
JPMorgan Chase.........B2
K
Krishna Memani ....... B11
L
Lennar ....................... B11
Lloyds Banking Group
...................................B12
Lowe's.......................B11
M
Marsh & McLennan ..B10
MetLife........................B2
Microsoft ............. B4,B12
Mitsui Home...............A1
D
N
Deutsche Post.............B4
Deutsche Telekom......B1
Newell Brands.....B3,B11
NXP Semiconductors..B3
S
Samsung Electronics..B2
Scripps Networks
Interactive.................B5
Shire..........................B12
SoftBank Group..........B1
Spencer Stuart............B3
Sprint .......................... B1
Starbucks....................B6
State Street................B3
T
Tencent Holdings........B3
Tesla............................B3
Teva Pharmaceutical .. B6
The9.............................B3
T-Mobile US................B1
Total ............................ B6
21st Century Fox........B1
Twitter ........................ B4
U
UBS Group...........B3,B10
Unilever.......................B6
W
Waymo........................B4
Wells Fargo.................A4
WPP.............................B2
INDEX TO PEOPLE
A
G
Abbasi, Yousef..........B11
Grant, R.J..................B11
S
B
H
Salzberg, Matt............B5
Breen, Ed.....................B6
Brenner, Andrew.......B11
Howie, Fraser............B10
C
Kipman, Alex...............B4
Cheng, Raymond.......B10
Chin, Henry...............B10
Cook, Tim....................B1
Corbat, Michael...........B2
L
V
Lazarus, Mark.............B2
Vogel, Jim.................B11
D
Dell, Michael..............M2
Drinkwater, Carrie......B2
Duperreault, Brian
........................... B10,B12
Ryvicker, Marci...........B5
K
T
Thiam, Tidjane..........B10
Tsai, Joe......................B3
M-N
W
McManus, Sean..........B2
Mercer, Robert..........B10
Mulvihill, Michael.......B2
Murdoch, James ......... B1
Musk, Elon..................B3
Noto, Anthony............B4
Wada, Takashi ............ B4
F
P-R
Frazier, Michael .......... B2
Pathak, Tarun..............B2
APPLE
Z
Zhang, Daniel..............B3
Zhang, Wenbin..........B10
Zuckerberg, Mark ....... B4
said increased unit shipments
by a double-digit percentage.
Tarun Pathak, Counterpoint’s associate director, said
he expects demand for the X
model among China’s 100 million iPhone users to be strong
enough to lift volumes and
sales in the quarters ahead.
Supply-chain issues have
caused analysts to slash
iPhone X sales projections for
the critical holiday sales period this year. Market-research
firm Strategy Analytics cut its
projections to fewer than 30
million units from 60 million
earlier this year.
While some investors worry
the delay could lead some Apple customers to buy a lesscostly $699 iPhone 8 or $549
iPhone 7, few said they fear
Apple will lose sales to rivals
such as Samsung Electronics
Co. About 95% of iPhone owners who plan to buy a new device say they will buy another
iPhone, according to UBS.
Apple’s services business—
which includes the App Store
and its music and payment
services—delivered another
strong quarter of double-digit
growth, surging 34% to $8.5
billion. Mr. Cook said the company now has 210 million subscriptions to Apple and thirdparty services, an increase of
25 million over the past 90
days. Apple typically collects a
15% fee on subscriptions for
products such as Netflix and
HBO if users sign up through
its App Store.
For its fiscal fourth quarter
ended Sept. 30, Apple’s revenue rose 12% to $52.58 billion,
and per-share profit jumped
24% to $2.07 a share from
$1.67 a share in the same period a year earlier. Analysts
polled by Thomson Reuters
had expected earnings of $1.87
a share. Annual revenue rose
6% in the latest fiscal year to
$229.23 billion.
RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS
Continued from the prior page
that Apple’s approach this
year has brought challenges.
“Having three models is new,”
he said in an interview. “The
staggered launch is new.
There’s a lot of firsts here. So
yes, it is complex [to forecast]
and we don’t profess to be
able to do it perfectly.”
Still, he said orders for the
iPhone X are “very strong”
and that Apple is making
headway on production.
“The ramp, especially considering how advanced the
product is, is going well,” Mr.
Cook said. “Obviously, if it
wasn’t, we wouldn’t be able to
guide” for record revenue for
the current quarter.
Apple expects revenue of
$84 billion to $87 billion in
the current quarter, far above
the company’s previous record
of $78.35 billion in the final
three months of 2016.
“Apple has moved past that
funk,” said Michael Frazier,
president of Bedell Frazier Investment Counselling, which
manages about $500 million
and counts Apple among its
largest holdings. “Things are
back on track.”
China has posed the biggest
test for Apple. The iPhone,
which surged in sales in 2015
and 2016 behind the iPhone 6,
declined in market share during the September quarter to
8.5% from 10% a year earlier
as low-cost Chinese smartphone makers gained, according to Counterpoint Research.
Still, revenue from Greater
China—which had declined
each of the previous six quarters—rose 12% in the latest
period to $9.8 billion. Mr.
Cook said Apple increased its
market share for products including the iPhone, which he
Y
York, Jed ..................... B2
Shipments of the iPhone rose 2.6% in the most recent quarter.
YURI GRIPAS/REUTERS
A
Advance Publications.B3
Airbus..........................B6
Alibaba Group Holding
.....................................B3
Alphabet......................B4
American International
Group...............B10,B12
Apple.........A4,B1,B4,B12
AutoNation ................. B4
Avis Budget Group.....B4
From left, Canada’s Chrystia Freeland, the U.S.’s Robert Lighthizer and Mexico’s Guajardo Villarreal at a Nafta press event in October.
U.S. Banks Seek Nafta Data Rule
BY VIPAL MONGA
AND TELIS DEMOS
As talks on a new North
American Free Trade Agreement heat up over auto parts
and agriculture, U.S. financial
firms are quietly pushing for
another, less tangible change:
the free movement of data
across borders.
A proposal, presented by the
U.S. at Nafta renegotiations in
September, would keep any
government in the new trade
pact from demanding banks or
insurers store customer data
on local servers, say people familiar with the text.
It is a long-coveted goal for
financial firms, who say this
could potentially save them
millions of dollars in technology-storage costs.
Firms such as Citigroup
Inc., J.P. Morgan Chase & Co.
and MetLife Inc. are among
those behind the push. They
say it is pricey to comply with
data rules in countries where
they operate because of requirements to maintain servers
within each country’s borders
for privacy and other reasons.
They also worry about potential risks in countries where
protection against hacking
might be less robust, firms say.
“For the financial services
industries, data flow commitments really are a must-have in
NFL
Continued from the prior page
age, in the “red states” while in
blue states viewing was down
10%.
In Week 2, the red-state decline outstripped the blue-state
decline considerably. But when
Mr. Trump started tweeting his
displeasure about the protests
in Week 3, the NFL had its best
year-over-year ratings performance of the season, and the
red states were down just 1%.
In the ensuing weeks the red
and blue-state declines were
generally even.
“The anthem protests have
been less a factor than some
people have claimed,” said Michael Mulvihill, executive vice
president of research at Fox.
“Even though [Mr. Trump] elevated the issue, you haven’t
seen a negative impact.”
The ratings declines haven’t
hurt all networks equally. The
Sunday afternoon packages on
Fox and CBS are taking the
biggest hit while NBC’s Sunday
night package is down slightly.
Monday Night Football on
ESPN and Thursday Night
Football, which is shared by
CBS, NBC and the NFL Network, are both up.
Fox and CBS executives believe the Thursday night games
have diminished interest in
Sunday contests.
“I do think it’s clear that
adding 10 games to the Thursday night package and two additional Sunday morning London games has clearly diluted
the Sunday afternoon packages
and affected the ratings. It’s
just simple mathematics,” said
CBS Sports Chairman Sean McManus.
ESPN pushed the NFL for
better games and this season
its audience is up about 5%
year-over-year.
NBC Sports Chairman Mark
Lazarus said the NFL’s rush to
get highlights online is equivalent to providing “Cliffs Notes”
to the games. “We’re enabling
fans to keep up and follow the
game without watching the
Privacy Differences
Cause Confusion
Currently, the rules that
govern privacy in the Nafta
countries diverge widely, causing confusion among some financial services firms.
Some parts of Canada’s
Bank Act, which regulates the
industry, and guidelines issued
by the Office of the Superintendent of Financial Institutions
could be interpreted to require
firms to keep their books and
records in the country.
Laws in some Mexican
states say customers have the
right to block access to data by
third parties, which banks say
can inhibit movement of information within organizations.
The push for free data flows
goes back to the Trans-Pacific
Partnership trade deal, negotiated by the Obama administration, which excluded financial
services from a provision allow-
ing U.S. companies to store their
data anywhere they pleased.
Following an intense push by
banking groups, Obama administration trade officials agreed to
try to include banks in future
agreements. After President
Donald Trump abandoned the
TPP, administration officials
have told industry groups that
they would continue the push
for unrestricted data movement
in its new trade negotiations.
—Vipal Monga
and Telis Demos
Nafta,” said Steve Simchak, director of international affairs
for the American Insurance Association, a trade group that
represents 320 U.S. insurers.
Getting free flow of data enshrined in the pact would not
only affect data between the
U.S., Canada and Mexico, it
would create a template for future trade deals that could include more jurisdictions. The
Trump administration has
backed bilateral trade agreements with Asia-Pacific countries and with the U.K. when
the country completes a
planned separation from the
European Union.
Banks and insurers today
operate data centers in dozens
of countries, and often must
call on local offices even when
deals are being negotiated in
hubs such as New York, London and Singapore, slowing
down transactions.
“These are global companies,” said Peter Matheson,
managing director at the U.S.
Securities Industry and Financial Markets Association trade
group. He said negotiators today need to consider technological advances that didn’t exist when Nafta went into
effect: “There were no such
things as clouds in 1994.”
For Citigroup, which already
operates 20 regional data centers, guaranteeing free flow of
cross-border data means the
bank could avoid building more.
Indonesia, for example, has
sought to require banks to onshore both their data centers
and backups, Citigroup said in a
letter to the U.S. Trade Representative on a separate matter.
Citigroup Chief Executive
Michael Corbat has been outspoken on data issues, and has
in the past discussed localization requirements with Indonesian officials, people familiar with those talks said.
“The movement of data is no
less important to the global
economy than the movement of
money,” Mr. Corbat said in 2014
speech in Barcelona.
Banks say local data storage
can cost them millions of dollars in hardware and software
costs and the labor required
for local offices, say people familiar with the industry.
—William Mauldin
contributed to this article.
Losing Streak
Overall NFL ratings are down, and some networks have fared worse
than others
Change in viewership for football telecasts
–20%
–15
–10
–5
0
5
2016
NBC Sunday Night
2017
CBS Sunday
afternoon
Fox Sunday
afternoon
Thursday night*
ESPN Monday Night Football
–20%
–15
–10
–5
0
5
*Thursday games are split up among CBS, NBC and NFL Network
Source: Nielsen data from networks
THE WALL STREET JOURNAL.
telecast,” Mr. Lazarus said.
Brian Rolapp, the NFL’s
chief media and business officer, said, “We are always looking at how do you strike that
balance between availability of
games and exposure of teams
to a national audience and a
scarcity of windows.”
Mr. Rolapp disputed the notion that the NFL was hurting
its TV partners by putting
more highlights online and
through its RedZone channel.
“We try not to let the conventional way of thinking limit the
innovation we need for the
long term,” he said.
Mr. Lazarus of NBC said he
doesn’t rule out the anthem
protests playing a role in the
viewership decline. NBC has
begun its own red-state and
blue-state ratings analysis. “If
you see the divisiveness and
the public debate, it’s hard to
discount that some people
have said, ‘I’m frustrated with
this and I’m turning away.’ It’s
unfortunate,” he said.
While the NFL is still prime
real estate for advertisers,
property values aren’t rising as
fast as before. The cost of NFL
commercial space increased
about 6% to 7% this year in the
“upfront” marketplace, the
spring bazaar when the lion’s
share of ad space is sold, according to media buyers. Typi-
cally, NFL ad prices jump
closer to 10% each year in the
upfront.
“They definitely priced it to
make it more advertiserfriendly than they have in
years past,” said Carrie Drinkwater, a senior executive at Interpublic Group of Cos.’ Mediahub.
Ad spending on the NFL was
still up 2% year-over-year in
September to $513 million, according to research firm Standard Media Index. That is below the mark of $527 million
in 2015.
Lyle Schwartz, North America president of investment at
WPP-owned media buyer
GroupM, said he is concerned
about the political nature of
the anthem controversy. There
is also “far more content than
ever before across more devices,” which could be creating
a general “malaise” around live
sports content, he said.
The NFL also counters that
while ratings are down, the
sport still is the strongest programming on television. NFL
games account for 18 of the 20
most-watched television shows
this season.
“The NFL is holding much
stronger than anything else,”
said San Francisco 49ers Chief
Executive Jed York. “We’re in
the middle of a shift of how
people consume media.”
—Andrew Beaton
and Keach Hagey
contributed to this article.
BY THE TIME TOMORROW’S
PAPER COMES OUT,
YOUR DONATIONS WILL HAVE
HELPED PEOPLE EARN NEW JOBS.
DONATE STUFF.
CREATE JOBS.
TO FIND YOUR NEAREST DONATION CENTER,
GO TO GOODWILL.ORG
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | B3
BUSINESS NEWS
Tesla Sets
Timeline
For Plant
In China
BY TIM HIGGINS
Tesla Inc. indicated that it
plans to make cars and sportutility vehicles in China in
about three years as part of a
bid to make the pricey electric
vehicles more appealing to local buyers.
Chief Executive Elon Musk
laid out the timeline Wednesday during a conference call
with analysts, saying he
doesn’t expect significant investment in a China factory
until 2019.
The Silicon Valley auto
maker has been vague about
its efforts to set up a factory
in China beyond a statement
that it was exploring the possibility with the city of
Shanghai and aimed to announce its plans by year’s
end.
The Wall Street Journal reported last month that the car
maker had reached an agreement to set up its own manufacturing facility in the city’s
free-trade zone.
Such an agreement would
be a milestone for a U.S. company operating in China, giving Tesla a first-of-its-kind arrangement and a way around
forming a partnership with a
local company.
Foreign auto makers that
Alibaba’s Profit Climbs Sharply
E-commerce company
mines consumer data
to more than double
its quarterly earnings
BY LIZA LIN
AND MARIA ARMENTAL
Alibaba Group Holding
Ltd.’s profit more than doubled in a blockbuster second
quarter, as the Chinese e-commerce company leveraged its
trove of consumer data to
drive spending and attract
more online advertising.
The company, whose Taobao and Tmall websites are
China’s most popular e-commerce sites, said revenue in
the fiscal quarter ended Sept.
30 surged 61% from a year
earlier to 55.1 billion yuan
($8.3 billion).
Higher consumer spending
and online advertising on the
company’s internet retail platforms helped drive revenue
higher, Alibaba said. Revenue
from the core commerce unit
rose 63% to 46.5 billion yuan,
as Alibaba used its consumer
databank to personalize buyer
home pages to encourage purchases.
Having started as an internet marketplace 18 years ago
to connect buyers and sellers,
Alibaba has since moved beyond its traditional e-commerce business into areas such
as digital content, cloud computing and logistics as it taps
into rising incomes among
China’s consumers.
The company also expanded
further into consumer categories such as groceries in the
past year, helping the firm’s
sales growth outstrip an overall e-commerce sales boom in
China.
Alibaba said net income
rose 132% to 17.7 billion yuan,
compared with 7.6 billion yuan
a year earlier.
“I’m very optimistic that
China will continue to experience real income growth for
years to come,” said Joe Tsai,
vice chairman, in a call with
investors Thursday. “This
long-term secular trend bodes
well for Alibaba.”
Alibaba, which owns stakes
in several brick-and-mortar
store chains, is seeking to expand its physical store business in China at the same time
American retailers have been
closing stores at a record
pace. It has introduced franchised convenience stores and
supermarkets that allow customers to order through their
mobile phones and receive deliveries within the hour.
“Our goal is to help the
whole retail world be upgraded into a whole digital operation,” said Daniel Zhang,
the chief executive.
Alibaba said last month it
would spend more than $15
billion on research and development in areas such as data
analytics, quantum computing
and machine learning.
On Thursday, Alibaba raised
its revenue-growth guidance
for the fiscal year to between
Sales Boost
Alibaba’s quarterly revenue
55.1B
▲61%
60 billion Chinese yuan
50
40
30
20
10
0
2015 ’16
’17
55.1 billion yuan = $8.3 billion
Source: S&P Capital IQ
THE WALL STREET JOURNAL.
49% and 53%. The increase, up
from a previous forecast of
45% to 49%, takes into account
sales by former affiliate Cainiao Smart Logistics Network
Ltd., of which Alibaba gained
majority control at the end of
Minorities,
Women
Advance in
Boardroom
BY JOANN S. LUBLIN
RON ANTONELLI/BLOOMBERG NEWS
CEO Elon Musk said
big investment in a
China factory isn’t
likely until 2019.
currently build vehicles in
China do so through joint
ventures with local manufacturers, allowing the foreign
companies to avoid a 25% tariff on autos while also forcing
them to share profits and
technology. Tesla has been reluctant to forge a local partnership.
It is unclear whether Tesla’s
plans will allow it to avoid the
tariffs. Local analysts are
skeptical that China will give
Tesla a break on the tax. But
by building a wholly owned
factory in a free-trade zone,
Tesla could significantly cut
its production costs—and lofty
sales prices. It could also help
the company build goodwill
among government officials,
analysts say.
It generally takes several
years for auto makers to
build a large manufacturing
plant.
Even with tariffs that make
the least-costly Model S
roughly 50% more expensive
in China than in the U.S.,
Tesla’s sales in the country
have surged in recent years.
The auto maker’s revenue in
China rose to more than $1
billion last year, from $319
million in 2015, representing
about 15% of total revenue
and making the country the
company’s
second-largest
market.
Mr. Musk said that a China
factory, with a capacity of at
least 200,000 vehicles, would
build the Model 3, a $35,000
sedan aimed at a broader
market than the more expensive Model S and coming
Model Y compact sport-utility
vehicle.
“It’s really the only way to
make the cars affordable in
China,” he said.
On Wednesday, Tesla reported its worst financial
quarter to date and warned of
delays in building the company’s Model 3 car.
September.
Alibaba said its cloud-computing business revenue increased 99% to three billion
yuan. The unit, which is expanding its presence this year
in international markets such
as Malaysia and India, is currently unprofitable.
Sales from Alibaba’s digitalmedia and entertainment division, which includes mobile
browser
UCWeb,
videostreaming site Youku Tudou
and Alibaba Pictures Group,
rose 33% to 4.8 billion yuan.
Still, the unit might experience
wider losses in the near term
as Tencent Holdings Ltd. and
Baidu Inc. intensify competition for viewers, according to
analysts at Morgan Stanley.
In a separate statement
Thursday, game developer
The9 Ltd. said Alibaba would
exclusively publish its mobile
version of online shooting
game “CrossFire” in China,
marking Alibaba’s first significant entry into Tencent’s
games stronghold.
Doctors perform a stent procedure. About 500,000 stents are implanted for stable angina each year world-wide, U.K. researchers say.
Study Questions Some Stent Use
BY PETER LOFTUS
A new study raised questions about the benefits of a
relatively common procedure
for heart patients—implanting
tiny devices that prop open
clogged arteries to relieve
chest pain.
The 200-patient study conducted by U.K. researchers
found that patients with stable
chest pain, or angina, who received stent devices experienced no significant improvement in exercise time on a
treadmill, compared with similar patients who received no
stents during sham procedures.
All patients had received intensive treatment with heart
drugs for six weeks before the
real or fake procedures.
“Symptoms didn’t improve
as much as expected” in the
patients who received stents,
Rasha Al-Lamee, an interventional cardiologist at Imperial
College London and one of the
study’s lead investigators, said
in an interview. She presented
results of the study at
the Transcatheter Cardiovascular Therapeutics medical conference in Denver; results were
simultaneously published online Thursday by the Lancet.
Dr. Al-Lamee cautioned that
the findings apply to a minority
of the population of patients
who now receive stents, those
with narrowing of only one artery and certain other characteristics. She said the study
doesn’t apply to patients having
heart attacks, who may benefit
from stents, and to patients
with chest pain who have disease in more than one artery.
The study also found that
stents improved blood supply
to the heart versus placebo,
she said.
Still, the study could affect
a portion of a multibillion
business for stent manufacturers including Medtronic PLC,
Abbott Laboratories and Boston Scientific Corp. About
500,000 stents are implanted
for stable angina each year
world-wide, the study’s researchers wrote in the Lancet.
Abbott spokesman Jonathon
Hamilton said the new study
had patients with mild disease
“who weren’t reflective of patients who typically undergo
stenting procedures,” and that
some patients received stents
in the trial who wouldn’t have
gotten them otherwise because
of the study design.
Medtronic and Boston Scientific referred questions
about the study to a statement
issued Thursday by the Society
for Cardiovascular Angiography and Interventions, whose
members include cardiologists
who perform stent procedures.
The SCAI said it questioned
the study’s conclusions, and
that SCAI believes stents are
the preferred treatment for
cardiac patients who need
more than medicines to improve health and quality of life.
But some doctors said the
study’s outcome should discourage use of stents in many
patients.
Newell Cuts Forecast, Shares Sink 27%
BY SHARON TERLEP
Newell Brands Inc. blamed
misfires in the back-to-school
season for a weak quarterly
report, but an uncertain outlook spooked investors, sending its shares down 27%.
Newell lost more than $5
billion in market value Thursday as the maker of Sharpie
markers and Rubbermaid containers cut its 2017 forecast
and declined to offer any predictions for 2018.
“We clearly have not had a
quarter like this before,” CEO
Michael Polk said in a call
with analysts.
Newell said its third-quarter profit rose to $234 million
from $187 million a year earlier. Revenue fell 7% to $3.7
billion, though excluding divestitures core sales increased
0.4%, the company said.
The results come about 18
months after Newell completed its $15.4 billion acquisition of Jarden Corp., which
added Rawlings baseball
gloves and Mr. Coffee machines, among other products,
to Newell’s already wide-rang-
ing portfolio.
During Thursday’s call, an
analyst noted the company’s
results since the Jarden deal
have been less consistent, and
asked Mr. Polk if he had any
thoughts “with the benefit of
hindsight.” Mr. Polk didn’t directly respond to the question.
A company spokeswoman said
Newell’s strategy is working
and the company believes it
has “a high-quality portfolio of
differentiated,
leading
brands.”
Mr. Polk partly blamed the
disappointing results on retail-
ers making last-minute cancellations to orders for back-toschool products, throwing off
the company’s inventory. Newell’s high-margin writing business was particularly weak in
the quarter, as were sales in
appliances and cookware.
A bigger issue, Mr. Polk
said, is shoppers’ fundamental
shift away from brick-andmortar retailers. “There are
certain retail channels where
foot traffic is down and their
business models are not well
positioned yet to deal with the
shift to e-commerce,” he said.
White men are starting to
lose their boardroom dominance
at the biggest U.S. businesses.
Women and minorities account for half of the 397 newest independent directors at
S&P 500 companies, according
to an analysis of 2017 proxy
statements by Spencer Stuart,
an executive recruitment firm.
That is the highest level since
the firm began tracking the
data in 1998.
The shift partly reflects
shareholder pressure. Institutional investors “keep raising
the issue of board diversity,’’
said Julie Hembrock Daum,
head of Spencer Stuart’s North
American board practice.
For instance, giant money
manager State Street Global
Advisors voted this year
against the re-election of certain directors at about 400
companies that it said failed
to address gender diversity in
a meaningful way.
And the business environment is changing so fast that
boards increasingly “recognize
the need to add directors with
experience in emerging areas
critical to the company’s future
success,’’ Ms. Daum added.
Spencer Stuart found other
signs of boards’ greater willingness to enlarge their membership pool. A record 45% of
the new S&P 500 directors
lacked experience on a public
company board. Less than half
of these board novices are female, the analysis showed.
In seeking independent directors, companies have long
favored current chief executives, who typically are white
men. But fewer business
bosses have time for outside
board service.
The percentage of S&P 500
CEOs with at least one external director role hit a record
low of 37% this year, Spencer
Stuart found. That is down
from 52% a decade ago.
Despite the expanded ranks
of new female and nonwhite directors, the proportion of
women on S&P 500 boards only
rose slightly to 22% from 21%
in 2016. Spencer Stuart blamed
modest director turnover.
In another first, more than
half of S&P 500 companies
now have split the roles of
chairman and CEO, the search
firm said.
QUALCOMM
Elliott Steps Up
Effort on NXP Deal
Hedge fund Elliott Management Corp. has enlisted investment bank UBS Group AG for
help in its effort to secure a
higher price in Qualcomm Inc.’s
planned purchase of NXP Semiconductors NV or bring in a
new bidder, according to people
familiar with the matter.
In October of last year, Qualcomm agreed to buy NXP for
$110 a share, or about $39 billion.
The companies still are seeking
regulatory approvals. Elliott has
argued that the price should be
higher. That has helped push
NXP shares well above the offer
price; they closed above $117 on
Thursday, even after NXP said
last week it is supportive of the
deal at $110 a share.
As part of its mandate, UBS
has sounded out other potential
bidders for NXP and is helping
to figure out the proper valuation for the Netherlands company, some of the people said. It
is far from certain another bidder would step forward.
—Dana Mattioli
and David Benoit
CONDÉ NAST
Teen Vogue to End
Its Print Edition
Condé Nast is ending the
print edition of Teen Vogue and
continuing the brand as a digitalonly publication, part of a broader
restructuring to reduce costs.
Like many magazines, Teen
Vogue has struggled on the
print advertising side as marketers shift spending to digital.
“We’re cutting the print edition because the audience is resonating digitally,” Bob Sauerberg,
Condé Nast’s chief executive,
said in an interview.
A Condé Nast spokeswoman
said the print magazine will
cease publication in 2018. The
decision is part of a broader effort at Condé Nast, owned by
Advance Publications Inc.
The spokeswoman said the
publisher is cutting the frequency
of a number of titles, with GQ and
Glamour shifting to 11 issues from
12, and Bon Appétit to 10 from 11.
Condé Nast also plans to lay off
an estimated 80 employees, according to a person familiar with
the situation. Condé Nast employs
just under 3,000 in the U.S.
—Jeffrey A. Trachtenberg
NEILSON BARNARD/GETTY IMAGES
BUSINESS WATCH
Teen Vogue has struggled on the print advertising side.
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B4 | Friday, November 3, 2017
* ****
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
CHINA CIRCUIT | By Li Yuan
U.S. Tech Giants Need to Rethink China Ties
other than to point to remarks Mr. Cook made during
a teleconference with analysts
in August when China’s censorship policies came up: “We
believe in engaging with governments even when we disagree.” A Facebook spokeswoman also didn’t directly
comment, instead reiterating
a statement that the company
remains interested in China
and is focused on getting Chinese businesses to use its ad
platform.
M
essrs. Cook and Zuckerberg weren’t the
only ones who spoke
during the meeting. Former
Treasury Secretary Henry
Paulson, Blackstone Group
Chairman Stephen
Schwarzman, and Jim Breyer,
an early Facebook investor
and chairman of the advisory
board, also praised Mr. Xi’s
leadership of China.
China hasn’t been an easy
market for foreign companies
in many sectors. Technology
is particularly fraught because
it influences the way people
think and thus is being brought
under ever tighter control by
Mr. Xi’s government.
Mr. Zuckerberg and the
other American technology
leaders should recognize
that China is entering a
“new era”—a phrase used in
the title of Mr. Xi’s speech to
the congress. In this era, according to Mr. Xi’s policy
blueprint, the Communist
Party will be supreme. The
bargaining power of foreign
tech companies, never high,
is likely to dwindle.
“Zuckerberg and so forth
have many illusions about
China,” says Chen Zhiwu, director of the Asia Global Institute and professor of economics at the University of Hong
Kong. Chief among them, he
said, is a tendency to see Chinese leaders as economic
pragmatists and play down
political statements. “They
should understand it’s really
different this time,” he says.
China’s tech leaders, Alibaba Group Holding Ltd.’s
Jack Ma and Tencent Holdings Ltd.’s Pony Ma, were
also at the meeting with Mr.
Xi, sitting in the second row.
Microsoft Corp. CEO Satya
Nadella and iPhone manufacturer Foxconn Technology
Group’s founder, Terry Gou,
were there, too, two of the
roughly two dozen advisory
board members to attend.
A five-minute report
shown on national television’s prime-time newscast
featured 10 seconds of applause for Mr. Xi from the
executives. That was after he
told them that the goal of
orities have shifted under Mr.
Xi from economic growth to
political control and what that
might mean for their businesses. According to his newly
endorsed policy program, Mr.
Xi sees a strategic opportunity
to make China a rich superpower, and that only the party
can provide the leadership—
and maintain the firm control—necessary to do that.
TPG/ZUMA PRESS
American
tech giants
need to rethink their relationship with
China. Now.
The need to do so was evident on Monday when Facebook Inc.’s Mark Zuckerberg,
Apple Inc.’s Tim Cook and a
bevy of other leaders in the
worlds of technology, finance
and industry were whisked
to the Great Hall of the People to meet Chinese President Xi Jinping.
Mr. Xi was fresh off a
Communist Party congress
that anointed him as China’s
paramount leader. The business chieftains, members of
an advisory board to Tsinghua University’s School of
Economics and Management,
were the first foreigners to
congratulate Mr. Xi in person
on his success.
Congratulate, they did.
According to the official People’s Daily, Mr. Cook expressed his admiration for
Mr. Xi’s leadership in global
governance. Mr. Zuckerberg
borrowed a phrase from Mr.
Xi’s speech to the congress,
“Never forget where you
started,” and said he hoped
China would develop as fast
as it has the past 30 years.
Asked about the meeting,
Apple declined to comment
Mark Zuckerberg attended a meeting with Xi Jinping on Monday.
education is to “train the
builders and successors of
socialism with Chinese characteristics, not bystanders
and opponents.”
Social-media users cackled
about the event. Some referred to Mr. Zuckerberg and
Mr. Cook as “comrades.”
Others said the executives
looked like representatives
of the toothless government
advisory body, the Chinese
People’s Political Consultative Conference, reporting to
Mr. Xi. Some publications
closed off their social-media
posts’ comment function.
During Mr. Xi’s first five
years in power, censorship has
grown more severe, taking aim
at critical remarks and foreign
content. That trend looks
likely to worsen. “The party
leads everything” is a sentence that the recent congress
added to the party constitution at Mr. Xi’s behest.
Mr. Zuckerberg, who shed
his usual casual wardrobe
for a suit and a tie to see Mr.
Xi, should have seen this
coming. When Mr. Xi took
power in 2012, only Facebook was blocked. Now Facebook’s Instagram is blocked
and WhatsApp is partially
blocked. Apple has had to
police its app offerings in
China, removing applications
that circumvent censorship.
Especially challenging for
the foreign tech leaders to understand is that the party’s pri-
T
hat means that as they
pursue greater access
to China’s huge market, the foreign tech firms
are going to have to accept a
bigger role for the party. The
government is already seeking a say in management decisions by some tech firms. It
is demanding access to user
data and investing heavily in
surveillance technologies.
Facebook is drawing heat in
the U.S. and Europe about
Russia’s use of its platform to
meddle with elections. In his
remarks to Mr. Xi, Mr. Zuckerberg said, “If billions in the
world could hear China’s
voice, the world will become a
better place.” A question is
what will Facebook do when it
is the Communist Party’s voice
that demands to be heard?
Follow Li Yuan on Twitter
@LiYuan6 or write to
li.yuan@wsj.com.
AutoNation Gears Up
To Provide Repairs
For Waymo’s Fleet
Microsoft believes its HoloLens augmented-reality headset will find a niche with corporate trainers, designers and repair technicians.
Microsoft Flips Script on Headsets
BY JAY GREENE
TOKYO—When Japan Airlines Co. sent Takashi Wada to
Microsoft Corp.’s headquarters
two years ago to try its HoloLens augmented-reality headset, the pilot grudgingly wondered why he needed to travel
nearly 5,000 miles to Redmond,
Wash., to examine a gadget
seemingly built for videogamers.
Today, Mr. Wada guides
HoloLens-wearing trainees as
they flip holographic switches
as if they were sitting in a cockpit. His conversion explains why
Microsoft believes its headset
initially will find a niche not
with zombie-hunting gamers
but with corporate trainers, designers and repair technicians.
Microsoft’s bid for commanding position in the budding market for augmented and
virtual reality is critical, analysts say, as the devices usher in
new ways for people to interact
with software through gestures,
voice and even the direction
they gaze. Apple Inc., Alphabet
Inc., Facebook Inc. and others
also are racing to define what
could emerge as the next major
computing interface.
“I have no doubt in my mind
that this is the future,” said
Alex Kipman, a top executive on
Microsoft’s HoloLens team.
Last year, U.S. businesses
used about 400,000 “smart
glasses,” according to Forrester
Research Inc., including eyewear with tiny screens such as
Alphabet’s Google Glass and devices such as HoloLens, which
overlays holographic elements
on a person’s view of the real
world. Forrester expects the
number to climb to 6.4 million
by 2020 and 14.4 million by
2025.
Microsoft has been an early
mover before, such as in smartphone software, only to see ri-
vals swoop in and dominate.
While Google Glass initially
sputtered, Alphabet released a
version for corporate customers
in July, counting Deutsche Post
AG’s DHL among its adopters.
In June, Apple released software to help developers build
augmented-reality applications
on its platform.
The market for headmounted displays includes augmented-reality devices such as
HoloLens, and virtual-reality
gear such as Facebook’s Oculus
Rift that occludes a person’s vision, immersing them in digitally generated sights and
sounds.
That Microsoft came to steer
HoloLens to the workplace runs
counter to how technology often evolves. Consumers brought
iPhones to work, for example,
often forcing employers to allow corporate-email use on personal devices.
HoloLens emerged from an
engineering team working on
what is arguably Microsoft’s
most consumer-focused business—its Xbox game division.
But the market for higher-end
virtual-reality devices, steered
heavily toward gamers, has
been slow to develop.
“You have to pay attention to
signals,” said Microsoft’s Mr.
Kipman. Businesses expressed
early enthusiasm for HoloLens,
he said, but acknowledged “it’s
still too expensive” for consumers.
HoloLens costs $3,000 to
$5,000 apiece. Japan Airlines
says the device makes up for
the cost by helping it more efficiently use its flight simulators,
which run roughly $880 an
hour to use. The airline acquired 10 HoloLens units and
may add more, in part because
would-be pilots who train first
with the headset end up being
much more productive in the
simulator, said Mr. Wada.
Twitter Worker Cuts Off Trump on Last Day
BY GEORGIA WELLS
Twitter Inc. blamed an employee’s error for an 11-minute
outage of President Donald
Trump’s account on Thursday
evening that quickly became
one of the messaging platform’s buzziest topics.
Twitter said the error was
made by a customer-support
employee on his or her last
day of work at Twitter.
“We are conducting a full
internal review,” Twitter said
in a statement. Twitter earlier
had said that @realdon-
aldtrump was “inadvertently
deactivated due to human error by a Twitter employee.”
In an official tweet, Twitter
said it would be “taking steps
to prevent this from happening again.”
The glitch, which raised
questions about how Twitter
employees can access users’ accounts, demonstrates the vulnerabilities of the platform that
has become one of Mr. Trump’s
preferred ways of communicating with constituents.
Twitter was infamous in its
early years for its frequent
service interruptions, known
for the “fail whale” icon. At
the South by Southwest conference in 2014, Twitter suffered an outage when the company’s co-founder Biz Stone
was speaking on stage.
In recent years however,
Twitter has taken steps to improve its reliability.
Some Twitter employees
and users took the error as an
opportunity to crack jokes.
Twitter Chief Operating Officer Anthony Noto retweeted a
parody account pretending to
be him that claimed responsi-
bility for the error. “That’s the
last time I try to code,” the
fake posting said.
“Seriously who is this person? I am unbelievable at
‘code,’ ” the real Mr. Noto’s account tweeted.
“I’ll file a JIRA ticket,”
tweeted another user.
Mr. Trump returned to
Twitter not long after his account was restored, tweeting
about tax cuts and the Democratic National Committee.
The topic “Trump’s Twitter,”
referring to the outage, had
more than 200,000 tweets.
Autonomous cars may not
need a driver, but they still
need a good mechanic.
Waymo LLC, the driverlesscar unit of Google parent Alphabet Inc., signed up AutoNation Inc. to service robovans that are being tested in
Arizona and California. The
agreement, announced Thursday, shows the Silicon Valley
tech giant is getting closer to
deploying vehicles on public
roadways without humans behind the wheel.
The agreement is separate
from a June deal in which Avis
Budget Group Inc. agreed to
park Waymo vehicles at rental
lots and do routine maintenance, including oil changes,
tire rotations and cleaning.
AutoNation, the largest dealership chain in the U.S., will provide mechanical and cosmetic
repairs to Waymo’s fleet.
Waymo is considered a
leader in autonomous-car research and has been transitioning to operating a fleet of
hundreds of Pacifica minivans
built by Fiat Chrysler Automobiles NV that are retrofitted with extensive software
and other gear so the vehicles
can drive themselves. Waymo,
which is competing with several auto makers in the driverless car race, showed off new
demonstrations of its technology on Tuesday.
Auto dealers sell new and
used cars but book a big chunk
of their profits on financing
and servicing vehicles. Many
of them, including AutoNation,
have been experimenting with
ways to become more relevant
if car usage becomes more of a
shared service.
AutoNation has begun servicing self-driving vehicles in
the Phoenix area, where
Waymo has launched a program that gives hundreds residents free rides in the selfdriving cars. Mike Jackson,
AutoNation’s chief executive,
said he has been making regular visits to Waymo headquarters and realized his dealer-
ship group could have a role in
the commercialization of selfdriving vehicles.
“We’re able to put in place
the strategic maintenance and
care program for each vehicle
that will proactively make sure
it’s always operating at the
highest safety levels and will
optimize the life cycle of the
vehicle,” Mr. Jackson said.
In a statement, Waymo
Chief Executive John Krafcik
said the two companies have
“a shared vision of enhancing
the in-car experience” and AutoNation would help to ensure
“Waymo vehicles are always in
top condition as we bring fully
self-driving cars to the public.”
“This is additional business
for us,” said Mr. Jackson. “I
believe Waymo is going to
grow—I think they have the
right approach and we’re going to grow with them.”
AutoNation said its technicians have the expertise to
maintain and repair the vehi-
Tech giant gets closer
to deploying its
autonomous vehicles
on public roadways.
cles but as the partnership
grows, they will hire more
technicians to meet demand.
The Waymo deal is a part of
a broader AutoNation effort to
reduce its dependence on lowmargin new-car sales. In the
last quarter, it opened “AutoNation USA” used-car centers
and expanded into branded car
parts, auctions and collision
centers.
Separately, AutoNation said
quarterly net income from
continuing operations fell 9.5%
from a year earlier to $1.00 a
share, beating analysts’ expectations by 16 cents. Revenue
fell 2.7% to $3.2 billion.
Same-store used-vehicle
gross profit was up 9% from a
year earlier.
WAYMO
BRITTA PEDERSEN/DPA/ZUMA PRESS
BY ADRIENNE ROBERTS
AutoNation will service robovans being tested in Arizona, California.
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | B5
BUSINESS NEWS
More Subscribers Flee Discovery
Smaller channels see
the most defections
but U.S. distribution
revenue rises 6%
BY HEATHER HADDON
Discovery
Communications Inc. reported an accelerating decline in subscribers to
its channels in the U.S., a sign
that the unraveling of the cable-television bundle is picking
up speed.
The media company lost 5%
of its U.S. channel subscribers
in the third quarter, an increase from the second quarter and up from 2% in the period a year earlier.
The subscriber losses have
been concentrated among Discovery’s smaller channels,
while its flagship channels like
Discovery channel, TLC and
Animal Planet have held relatively steady. As a result, despite the subscriber decline,
Discovery was able to increase
its domestic distribution revenue in the third quarter by a
healthy 6% and reaffirm its
guidance for the year of “midsingle-digit growth” in distribution revenue.
But the company’s results
revealed just how rapidly cordcutting and cord-shaving are
reshaping the television ecosystems, particularly for media
companies that lack sports
within the U.S. market. Discovery shares were down 7.5% in
midday trading.
“As subscriber declines continue across the pay-television
landscape, we continue to pursue our strategic pivot, to take
our content to consumers
across every screen and service,” said Discovery Communications Chief Executive David Zaslav in a call with
analysts Thursday.
Distributors also have been
reporting accelerating declines
in their pay-TV subscribers in
the latest quarter as customers
turn to more-affordable bundles of online channels and
streaming services. Last week,
Comcast Corp. reported its
DISCOVERY CHANNEL/EVERETT COLLECTION
BY KEACH HAGEY
BlueApron
Posts Loss,
Drop in
Customers
Discovery’s ‘Deadliest Catch.’ CEO David Zaslav said Discovery has been hurt by its absence from some of the new ‘skinny’ bundles.
largest quarterly loss of cableTV subscribers in three years,
while AT&T and Charter Communications also recently reported continuing pay-TV subscriber declines.
Discovery has been positioning itself to beat these
trends by investing in digital,
buying a stake in Facebookfeeding short-form video company Group Nine and beefing
up its direct-to-consumer
Results showed just
how rapidly cordcutting is reshaping
television landscape.
streaming business in Europe
with its Eurosport Player.
Mr. Zaslav pinned blame for
the subscriber declines racking
the pay-TV industry on sports
programming and the rising
fees that pay-TV distributors
must pay to carry broadcast
networks. Echoing arguments
long made by major Discovery
shareholder John Malone, he
argued that the inclusion of
sports and broadcast networks
in essentially all pay-TV bundles prices young people out of
the market, driving them to
cheaper options like Netflix.
Mr. Zaslav said Discovery’s
subscriber picture also has
been hurt by its absence from
some of the new generation of
so-called “skinny” bundles put
together by YouTube and Hulu,
and that talks with those companies continue. Like Viacom
Inc., another company lacking
sports in its channel portfolio,
Discovery said it is in talks
with distributors and its fellow
programmers to create a new,
sports-free skinny bundle. The
Wall Street Journal has reported that the entertainmentfocused bundle is in the works
and could cost about $20 a
month.
The other unpleasant surprise for investors came from
deal to acquire Scripps Networks Interactive would close
early next year. But Marci
Ryvicker, an analyst at Wells
Fargo, said she was “watching
headlines” on the fate of the
pending merger between AT&T
and Time Warner Inc. The Wall
Street Journal reported Thursday that the Justice Department was weighing blocking
the Time Warner acquisition if
the companies and the government can’t agree on terms to
satisfy antitrust concerns.
Overall, Discovery’s net income in the third quarter was
flat at $218 million, as better
operating results were offset
by $142 million in charges tied
to its pending merger with
Scripps Networks Interactive. Earnings per share increased to 38 cents, due to
buybacks. Revenue grew 6% to
$1.65 billion, driven by an 11%
rise in the company’s international business and a 4% rise
domestically. Analysts had expected revenue of $1.64 billion,
according to FactSet.
Tuning Out
Discovery Communications
share price this year
$30 a share
25
20
15
Thursday
Reported a decline
in subscribers
$17.31
▼9.7%
10
5
0
2017
Source: FactSet
THE WALL STREET JOURNAL.
the company’s international
division, where the distribution revenue outlook was lowered, in part due to power outages in Mexico.
Discovery executives reiterated their expectation that its
Blue Apron Holdings Inc.
posted a loss and shed customers in the third quarter,
straining to retain its edge in
the saturated meal-kit market
just months after an initial
public offering of stock.
Shares in the company fell
19% on Thursday to a new low
after Blue Apron reported a
loss of 47 cents a share. It
now expects a net loss of $131
million to $138 million for the
second half of the year, rather
than a previously forecast net
loss in the range of $121 million to $128 million.
The stock closed off 87
cents at $3.80.
Blue Apron’s profitability
and customer count suffered
from declines in advertising,
and the company expects severance costs associated with
recent layoffs to take a toll in
the current quarter. The company also dropped plans to
build a new fulfillment center
in California, focusing on one
in New Jersey instead. “We
did a lot in a short period of
time and it was a pretty ambitious plan,” Chief Executive
Matt Salzberg said about the
company’s facility changes.
The company reported
$210.6 million in revenue for
the September-ended quarter,
higher than the $191.5 million
analysts expected.
Blue Apron is still the largest U.S. maker of meal kits,
which provide preapportioned
ingredients for customers to
assemble at their homes. But
competitors have started to
introduce products marketed
as more flexible and faster to
cook than Blue Apron’s.
Blue Apron’s customer
count fell to 860,000 in the
third quarter, a 9% drop from
the second quarter and down
from a peak of just over one
million earlier this year.
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PROUD ASSOCIATION SPONSORS
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Brown County Chiropractic Society
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Chiropractic Society of Rhode Island
Colorado Chiropractic Association
Florida Chiropractic Association
Georgia Chiropractic Association
Hawaii State Chiropractic Association
Idaho Association of Chiropractic Physicians
Illinois Chiropractic Society
Indiana State Chiropractic Association
Nevada Chiropractic Association
International Chiropractors Association
Iowa Chiropractic Society
Macomb County Chiropractic Association
Maryland Chiropractic Association
Massachusetts Chiropractic Society
New Mexico Chiropractic Association
New York Chiropractic Council
New York State Chiropractic Association
North Carolina Chiropractic Association
North Dakota Chiropractic Association
Mercer County Chiropractic Society
Michigan Association of Chiropractors
Michigan Chiropractic Foundation
Minnesota Chiropractic Association, Inc.
Mississippi Chiropractic Association
Oregon Chiropractic Association
Pennsylvania Chiropractic Association
South Dakota Chiropractors Association
Tennessee Chiropractic Association
Texas Chiropractic Association
Unified Virginia Chiropractic Association
Missouri State Chiropractors Association
Utah Chiropractic Physicians Association
National Board of Chiropractic Examiners
Nebraska Chiropractic Physicians Association
PROUD COLLEGIATE SPONSORS
Canadian Memorial Chiropractic College
Cleveland College of Chiropractic
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New York Chiropractic College
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Palmer College of Chiropractic
Parker University
Southern California University of Health Sciences
THE WALL STREET JOURNAL.
B6 | Friday, November 3, 2017
EARNINGS WATCH
U.S. Price Pressures
Weigh on Drugmaker
The world’s biggest seller of
generic drugs, Israel’s Teva Pharmaceutical Industries Ltd., cut
its full-year outlook for the second time this year, blaming price
pressure in its U.S. business and
greater competition.
Third-quarter adjusted net
profit was $1 billion, compared
with $1.4 billion a year ago, while
revenue rose slightly to $5.6 billion. Teva said it expects adjusted
earnings per share of $3.77 to
$3.87 for 2017, down by roughly
30 cents from earlier guidance.
Teva’s American depositary receipts were down 20% to $11.23
in New York Stock Exchange
composite trading at 4 p.m.
Thursday. Teva’s stock is down
more 60% since the end of 2016.
—Rory Jones
STARBUCKS
Unilever to Buy
Tazo Tea Brand
Starbucks Corp. said it would
sell its Tazo brand of teas in the
coffee seller’s latest move to focus on its core operations.
Unilever PLC is paying $384
million for the brand, which
Starbucks bought for $8.1 mil-
lion in 1991.
For the quarter, revenue was
$5.7 billion, down 0.2% from a
year ago. Profit was $788.5 million, or 54 cents a share, compared with $801 million, or 54
cents a share, a year ago. On an
adjusted basis, earnings per
share came in at 55 cents. Analysts polled by Thomson Reuters
had expected revenue of $5.8
billion and adjusted earnings per
share of 55 cents.
—Austen Hufford
BOMBARDIER
Plane Maker Touts
Airbus Partnership
Bombardier Inc. missed analysts’ revenue estimates in its
latest quarter as the plane and
train maker touted its new partnership with Airbus SE as a
“game-changing” step.
The Montreal company’s
third-quarter revenue of $3.8 billion was less than the $4.1 billion
expected by analysts polled by
Thomson Reuters. In the yearearlier quarter, the company had
revenue of $3.7 billion.
Bombardier last month announced it would team with Airbus to accelerate production of
its CSeries, dealing a blow to
longtime Airbus rival Boeing Co.
—Cara Lombardo
and Jacquie McNish
Shell’s Profit Nearly Triples
Recovering oil prices,
increased production
and cost cutting help
lift quarterly results
BY SARAH KENT
LONDON—Royal
Dutch
Shell PLC said its profit nearly
tripled in the third quarter
compared with a year earlier,
helped by recovering oil
prices, better conditions for its
refineries and an increase in
oil-and-gas production.
The British-Dutch giant
said its quarterly profit on a
current cost-of-supplies basis—a number similar to the
net income that U.S. oil companies report—was $3.7 billion, up from $1.4 billion a
year earlier.
Shell’s earnings were lifted
by conditions that have
boosted the fortunes of most
giant oil companies, which
have regained a level of equilibrium after years of scrambling to adapt to the sharp
drop in oil prices since 2014.
Last week, Exxon Mobil
Corp and Chevron Corp. both
reported increases in thirdquarter profit of about 50%
compared with the prior
year. French oil major Total
SA saw its earnings jump
40%. On Tuesday, British oil
ALEJANDRO CEGARRA/BLOOMBERG NEWS
TEVA PHARMACEUTICAL
EARNINGS
Shell’s share price has climbed to levels not seen since before prices crashed three years ago.
giant BP PLC said it could
cover its spending and dividends with cash, with oil at
$49 a barrel.
Driving the results are
modestly recovered oil prices
and a raft of cost cuts that
Shell and others say have
changed how they do business.
The international oil price
benchmark, known as Brent,
averaged around $52 a barrel
in the third quarter, up since
dipping below $30 a barrel in
early 2016 but much below a
2014 peak of $114 a barrel.
This week, Brent climbed
above $60 a barrel for the
first time in two years.
Shell said it was able to
cover its shareholder payouts
with cash at current oil
prices—a newly important
metric for investors worried
about the safety of their dividends in a low-oil-price world.
The company’s chief executive,
Ben van Beurden, has vowed
that the company’s mind-set
on oil prices is that they will
be “lower forever.”
Shell’s share price has
climbed to levels not seen
since before prices crashed
three years ago. It rose 2.4% in
London, on a day when other
energy shares and Brent crude
prices were down.
Strong performance in
Shell’s refining and chemicals
division helped underpin earnings in the third quarter.
The company’s exploration
and production arm also returned to profit in the quarter.
DowDuPont Expects Delay in Breakup
CHRISTOPHER JUE/GETTY IMAGES
BY JACOB BUNGE
AND ALLISON PRANG
For the quarter, Starbucks revenue was $5.7 billion, down 0.2%.
New Highs and Lows | WSJ.com/newhighs
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and
Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session.
Thursday, November 2, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
NYSE highs - 155
AerCap
AER
AirLease
AL
AlamoGroup
ALG
Albemarle
ALB
AlexandriaRealEst ARE
Alibaba
BABA
AlleghenyTechs ATI
Allstate
ALL
AllyFinancial
ALLY
AlonUSAPartners ALDW
Ameren
AEE
AEP
AEP
AmerWaterWorks AWK
Andeavor
ANDV
AsiaPacificFund APB
AutoNation
AN
AveryDennison AVY
54.50
45.15
112.00
143.69
125.99
191.22
26.59
98.21
26.77
13.28
62.49
74.92
90.22
111.27
14.68
55.77
108.58
0.3
1.5
0.4
-3.8
-0.5
-0.7
2.2
3.8
0.7
4.1
0.8
-0.4
2.6
0.5
-0.5
14.8
1.3
52-Wk %
Sym Hi/Lo Chg Stock
BkNovaScotia
BNS
Bard CR
BCR
BectonDickinsonPfA BDXA
BectonDickinson BDX
BrightHorizons BFAM
Brown&Brown
BRO
CF Industries
CF
CNOOC
CEO
CVR Energy
CVI
CVR Refining
CVRR
CabotOil
COG
CadenceBancorp CADE
CAE
CAE
Calpine
CPN
CanNaturalRes CNQ
Care.com
CRCM
CatchMarkTimber CTT
CenturyComm
CCS
CharlesRiverLabs CRL
Cigna
CI
65.40
335.57
59.88
224.73
93.13
50.81
39.04
141.11
30.92
12.85
28.29
25.14
18.18
15.11
35.55
17.10
13.20
29.20
119.05
205.75
1.1
2.7
5.5
7.7
2.4
0.6
1.3
3.6
1.2
-0.8
1.3
2.3
0.2
-0.2
0.7
13.8
1.0
-4.5
-0.5
0.3
ConEd
CreditSuisse
CubeSmart
CurtissWright
Dana
Danaher
DaqoNewEnergy
Deere
DelekUS
DukeEnergy
EMCOR
EPAM Systems
Ecopetrol
EmployersHldgs
EntergyMS Bds
Exelon
ExtraSpaceSt
FangHoldings
FederalSignal
FidelityNatlFin
DowDuPont Inc. could take
longer than expected to split
into three new companies after the newly merged chemical
giant revamped its separation
strategy, Chief Executive Ed
Breen said.
DowDuPont now projects
the three-way split to take up
to two years as some businesses are shifted among the
52-Wk %
Sym Hi/Lo Chg
ED
CS
CUBE
CW
DAN
DHR
DQ
DE
DK
DUK
EME
EPAM
EC
EIG
EMP
EXC
EXR
SFUN
FSS
FNF
86.82 1.2
16.46 4.9
28.21 2.5
120.13 1.7
31.41 1.6
93.14 -0.2
40.51 0.3
135.04 0.1
28.35 0.8
88.73 0.8
81.61 0.8
99.16 9.4
11.56 -1.1
49.60 1.3
25.10 0.3
40.81 1.4
85.92 1.9
4.77 2.6
23.64 9.1
38.07 -0.1
ADVERTISEMENT
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BANKRUPTCIES
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52-Wk %
Sym Hi/Lo Chg Stock
FleetCorTech
FLT
Gallagher
AJG
HanoverIns
THG
HawaiianElec
HE
HealthSouth
HLS
HiltonGrandVac HGV
Hilton
HLT
HollyFrontier
HFC
HondaMotor
HMC
HubSpot
HUBS
HyattHotels
H
IONGeophysical IO
ITT
ITT
Ingevity
NGVT
Insperity
NSP
iStarPfdD
STARpD
iStarPfdI
STARpI
Kennametal
KMT
Kyocera
KYO
LazardGlblFd
LGI
Leidos
LDOS
LibertyProperty LPT
LincolnNational LNC
Loews
L
MSCI
MSCI
Manpower
MAN
MarathonPetrol MPC
MarriottVacations VAC
McDonalds
MCD
MetLife
MET
MiXTelematics MIXT
ModineMfg
MOD
MonmouthRealEst MNR
Moog A
MOG.A
NRG Energy
NRG
NatlPrestoInds NPK
NewJerseyRscs NJR
NexPointCreditFd NHF
NexPointResidentl NXRT
NorthstarRltyEur NRE
NuvMtgOppTermFd JLS
OaktreeSpecNts24 OSLE
Oppenheimer A OPY
Orix
IX
OrmatTech
ORA
OwensCorning
OC
PBF Energy
PBF
PSBusParksPfdW PSBpW
ParkerHannifin PH
PrefApartment APTS
PrincipalFin
PFG
Progressive
PGR
Prologis
PLD
ProPetro
PUMP
183.61
64.06
106.66
36.64
49.99
42.22
73.31
41.34
32.94
88.50
70.48
11.95
51.65
74.47
104.50
25.70
25.91
48.89
69.78
17.23
64.12
43.84
77.46
49.93
127.23
125.84
62.34
141.88
168.47
55.91
10.84
23.55
17.40
89.38
27.44
120.05
44.85
23.98
26.88
13.95
25.97
25.25
22.90
89.46
65.91
83.31
31.67
25.62
189.83
20.84
69.40
50.14
66.25
17.35
11.0
0.4
2.6
0.5
6.6
-1.0
...
1.5
2.9
0.3
6.2
53.2
10.0
0.6
4.6
-0.2
2.0
9.4
0.5
-0.4
...
0.9
1.5
-0.1
6.7
1.3
2.1
4.1
1.0
3.5
4.7
2.9
1.2
1.8
4.5
1.9
0.1
-0.2
6.7
1.1
0.4
0.1
4.6
1.5
0.9
-1.0
2.6
-1.0
2.8
1.9
2.6
1.0
1.4
-0.5
planned spinoff companies,
Mr. Breen said. DowDuPont,
formed in September from the
merger of Dow Chemical Co.
and DuPont Co., had previously aimed to execute the
breakup within 18 months.
The conglomerate plans to
cut jobs and close or sell some
facilities to save $3 billion in
annual costs. DowDuPont aims
to streamline operations before forming three new companies focused on agriculture,
52-Wk %
Sym Hi/Lo Chg Stock
PublicStoragePfX PSApX
QTS Realty
QTS
Q2Holdings
QTWO
RPC
RES
Rayonier
RYN
ResoluteForest RFP
RockwellCollins COL
RoyalDutchA
RDS.A
RoyalDutchB
RDS.B
Seacor
CKH
SabineRoyalty
SBR
SantanderConUSA SC
SiteOneLandscape SITE
SocialCapHed
IPOA.U
Southern
SO
Spire
SR
SpiritAeroSys
SPR
StellusCap5.75Nt22 SCA
Strats GSG GJS GJS
SunCommunities SUI
TableauSoftware DATA
TaiwanFund
TWN
TelecomArgentina TEO
TeledyneTech
TDY
Teleflex
TFX
Teradata
TDC
TerrenoRealty
TRNO
Total
TOT
TowerIntl
TOWR
ToyotaMotor
TM
Travelers
TRV
TwoHarborsPfdB TWOpB
VailResorts
MTN
ValeroEnergy
VLO
VirtusGlbDiv&Incm ZTR
VishayPrecision VPG
WNS
WNS
Wal-Mart
WMT
WellCareHealth WCG
Winnebago
WGO
XPO Logistics
XPO
YumBrands
YUM
Zendesk
ZEN
Zoetis
ZTS
25.79
59.48
43.65
25.56
30.98
7.40
136.50
64.24
66.06
51.59
42.85
17.02
64.67
10.97
53.27
79.60
83.05
25.63
20.39
92.22
82.32
21.68
34.20
179.01
263.97
38.08
38.06
56.60
33.15
125.49
135.71
26.70
233.77
82.19
13.47
24.95
39.21
89.17
204.06
49.90
72.46
80.66
35.00
67.85
0.1
0.1
-2.3
1.1
1.4
23.1
0.1
1.9
1.3
8.8
-2.5
0.7
1.5
-1.1
2.2
-0.1
4.3
0.3
2.4
0.1
1.7
-0.1
1.0
4.8
5.4
11.3
1.3
0.6
4.4
0.7
0.9
0.8
0.6
1.1
0.1
1.2
1.4
1.0
...
-3.3
2.7
6.5
12.2
4.3
NYSE lows - 92
AES
AES
AK Steel
AKS
ARCDocumentSolns ARC
AT&T
T
AdvanceAuto
AAP
AlaskaAir
ALK
AmericanRenal ARA
10.46
4.21
3.01
32.93
80.21
63.56
11.08
2.1
-2.8
-21.6
-1.1
1.2
-3.2
-1.2
52-Wk %
Sym Hi/Lo Chg Stock
AndeavorLog
ANDX
AnteroMidstream AMGP
ArlingtonAsset AI
BT Group
BT
BlueApron
APRN
CBS B
CBS
CBS A
CBS.A
Cabco JCP PFH PFH
CapitolInvIV A
CIC
CapsteadMtg
CMO
CardinalHealth
CAH
CircorIntl
CIR
ClearBridgeEnMLPFd CEM
CobaltIntlEner
CIE
ContainerStore TCS
Corts JCPen JBS JBN
Corts JC KTP
KTP
Coty
COTY
CushingTotRetFd SRV
DeanFoods
DF
DeutscheStratMuni KSM
EP Energy
EPE
EastmanKodak KODK
EastmanKodakWt KODK.WS.A
EdgewellPersonal EPC
Enbridge
ENB
EvolentHealth
EVH
FS Investment FSIC
FT SrFR Incm
FCT
FivePoint
FPH
GameStop
GME
GeneralElec
GE
GenieEnergy
GNE
GlaxoSmithKline GSK
GranitePointMtg GPMT
HeclaMining
HL
Interpublic
IPG
Intrexon
XON
KKRIncomeOppsRt KIOr
KayneAnderson KED
KayneAnMLPInv KYN
KinderMorgan
KMI
KinderMorganPfdA KMIpA
Luby's
LUB
MSG Networks MSGN
MacquarieInfr
MIC
MedleyMgmt
MDLY
Mednax
MD
NCR
NCR
NOW
DNOW
NewellBrands
NWL
NielsenHoldings NLSN
Nordstrom
JWN
NuSTAREnergy NS
43.21
17.60
11.11
16.63
3.75
54.00
55.34
11.09
9.60
8.63
60.33
42.51
13.17
0.62
3.59
9.92
11.08
14.43
10.79
9.36
11.84
2.23
4.99
0.02
61.91
36.62
14.45
7.65
13.03
12.00
18.22
19.63
5.02
35.86
17.70
4.57
18.92
15.62
0.28
15.09
15.28
17.73
37.02
2.40
16.45
65.57
5.55
40.56
30.43
10.54
29.70
35.84
39.28
31.97
-1.9
-5.1
-1.8
-4.5
-18.6
-3.1
-2.8
-4.2
-0.1
-1.9
-1.8
...
-1.8
-37.9
-1.4
-4.2
-6.2
-5.6
-2.5
-3.0
...
-7.0
-1.9
-55.4
-3.9
-4.2
-2.6
-1.9
-0.2
-4.4
-0.5
-0.4
0.6
-0.7
-5.4
-1.1
-2.7
-0.4
18.5
-2.0
-2.8
-1.8
-1.2
0.4
1.8
-3.6
-0.9
0.7
-3.1
-0.6
-26.8
1.8
-1.5
-3.8
Mutual Funds | WSJ.com/fundresearch
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each. 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. 3-YR%RET is trailing three-year return
annualized.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
Thursday, November 2, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
44.61
Ultra
American Funds Cl A
31.83
AmcpA p
41.04
AMutlA p
BalA p
27.44
BondA p
12.96
CapIBA p
62.86
CapWGrA
52.41
EupacA p
57.36
63.59
FdInvA p
51.48
GwthA p
10.47
HI TrA p
41.13
ICAA p
23.48
IncoA p
45.01
N PerA p
47.49
NEcoA p
66.54
NwWrldA
56.43
SmCpA p
13.00
TxExA p
45.41
WshA p
Baird Funds
10.91
AggBdInst
11.26
CorBdInst
BlackRock Funds A
20.31
GlblAlloc p
BlackRock Funds Inst
EqtyDivd
23.14
GlblAlloc
20.44
HiYldBd
7.85
StratIncOpptyIns 9.97
Bridge Builder Trust
NA
CoreBond
Dimensional Fds
11.04
5GlbFxdInc
NA
EmgMktVa
EmMktCorEq 22.56
14.30
IntlCoreEq
20.15
IntlVal
NA
IntSmCo
23.58
IntSmVa
US CoreEq1
-0.07 27.9 US CoreEq2
US Small
... 18.6 US SmCpVal
-0.02 13.1 US TgdVal
-0.04 12.3 USLgVa
+0.01
+0.02
-0.06
-0.10
-0.08
-0.06
-0.01
-0.09
+0.01
-0.08
-0.04
-0.05
-0.07
...
-0.04
3.4
11.8
21.4
29.8
19.0
22.5
6.7
14.8
10.7
27.4
32.1
29.3
22.7
4.7
15.1
+0.02
+0.01
4.1
4.4
+0.02 11.7
+0.08 13.3
+0.02 12.0
-0.01 7.7
... 4.3
...
NA
+0.01
...
+0.05
+0.03
+0.12
...
+0.02
2.4
NA
31.9
24.8
23.0
NA
24.7
NA
NA
NA
NA
NA
NA
...
...
...
...
...
...
NA
NA
NA
NA
NA
NA
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
109.29 +0.01
14.01
...
13.84 +0.01
46.82 +0.06
202.15
...
DoubleLine Funds
TotRetBdI
10.68 +0.01
Edgewood Growth Instituti
EdgewoodGrInst 29.42 +0.02
Federated Instl
6.37 +0.01
StraValDivIS
Fidelity
500IdxInst
90.30 +0.02
500IdxInstPrem 90.30 +0.03
500IdxPrem 90.30 +0.03
ExtMktIdxPrem r 62.55 +0.06
IntlIdxPrem r 43.42 +0.06
...
SAIUSLgCpIndxFd 13.84
TMktIdxF r
74.88 +0.03
TMktIdxPrem 74.87 +0.03
USBdIdxInstPrem 11.62 +0.01
Fidelity Advisor I
33.46
...
NwInsghtI
Fidelity Freedom
FF2020
16.73
...
14.48
...
FF2025
18.13
...
FF2030
...
Freedom2020 K 16.73
...
Freedom2025 K 14.48
...
Freedom2030 K 18.14
Freedom2035 K 15.21 -0.01
...
Freedom2040 K 10.69
Fidelity Invest
23.67
...
Balanc
9.2
17.6
4.1
22.9
12.8
3.7
32.5
10.9
17.1
17.1
17.1
14.0
23.0
17.1
16.6
16.5
3.3
25.3
13.4
14.4
16.8
NS
NS
NS
NS
NS
14.1
Net YTD
NAV Chg % Ret
87.11
BluCh
127.05
Contra
127.05
ContraK
10.33
CpInc r
41.43
DivIntl
GroCo
181.48
181.44
GrowCoK
7.94
InvGB
11.30
InvGrBd
52.77
LowP r
LowPriStkK r 52.74
105.73
MagIn
107.70
OTC
Puritn
23.17
SrsEmrgMkt 21.57
SrsGroCoRetail 17.83
SrsIntlGrw
16.20
10.89
SrsIntlVal
TotalBond
10.69
-0.18
...
...
-0.01
-0.03
-0.25
-0.25
+0.01
+0.01
+0.14
+0.15
+0.05
-0.35
-0.01
+0.02
-0.02
-0.04
...
+0.01
Fidelity Selects
218.07 +1.22
First Eagle Funds
60.49 -0.03
GlbA
FPA Funds
FPACres
35.24 -0.03
FrankTemp/Frank Adv
IncomeAdv
NA
...
FrankTemp/Franklin A
7.44 +0.01
CA TF A p
Fed TF A p
11.95 +0.01
NA
...
IncomeA p
60.59 +0.07
RisDv A p
FrankTemp/Franklin C
NA
...
Income C t
FrankTemp/Temp A
NA
...
GlBond A p
NA
...
Growth A p
FrankTemp/Temp Adv
NA
...
GlBondAdv p
Harbor Funds
75.58 +0.09
CapApInst
Biotech r
32.0
29.9
30.0
11.0
24.4
32.7
32.8
3.7
4.1
15.1
15.3
22.5
35.2
16.1
37.4
33.5
26.6
18.9
4.0
25.3
11.5
9.3
NA
5.1
3.0
NA
16.1
NA
NA
NA
NA
33.4
27.32
65.94
18.64
2.46
11.09
43.23
24.01
24.42
24.08
23.56
23.62
0.41
17.80
10.00
41.15
1.55
98.11
42.66
10.85
10.55
40.50
23.99
8.91
24.09
15.60
10.42
11.45
5.11
45.34
12.65
4.07
-0.6
-2.1
-10.9
-4.1
-1.8
-6.7
-3.3
-3.6
-1.9
-1.4
-3.5
-26.3
-0.3
-2.9
-1.5
-3.1
-6.9
0.3
-19.9
-4.5
-35.2
-0.9
-21.0
-1.6
59.3
-4.0
-2.2
-0.2
-2.0
0.9
-6.0
NYSE Arca highs - 54
ALPSIntlDivDogs IDOG
CSOPFTSEChinaA50 AFTY
ColumbiaEMCoreXCh XCEM
DirexFinlBull3
FAS
E-TRACS Lvstk UBC
FinSelSectorSPDR XLF
FT Dow30EW
EDOW
FT FinlsAlpDx
FXO
FT GlbEngg
FLM
FrankUSLowVol FLLV
GlbXSciBetaAsiaXJ SCIX
GlbXSciBetaJapan SCIJ
GraniteS&P Comm COMG
IQ HedMacrTrac MCRO
IQMergerArbitrage MNA
iPathBlmIndMetalTR JJM
iPathLgRus1000 ROLA
iShCoreMSCIPacific IPAC
iShCurrHdgNikk400 HJPX
iShUSFinlServices IYG
iShUS Finls
IYF
Fund
Data provided by
52-Wk %
Sym Hi/Lo Chg Stock
OmegaHealthcare OHI
Omnicom
OMC
Owens&Minor
OMI
PenneyJC
JCP
PitneyBowes
PBI
PrestigeBrands PBH
QwestNts2054 CTV
Qwest7%Nts2056 CTAA
QwestNts2052 CTX
QwestNts2052 CTU
QwestNts2057 CTDD
RAIT Financial
RAS
SafetyIncome
SAFE
Satrn JCPen
HJV
Scana
SCG
SocialCapHedWt IPOA.WS
SpectrumBrands SPB
StandardMotor SMP
TevaPharm
TEVA
TimeInc.
TIME
TreeHouseFoods THS
TriangleNts22
TCCB
TriangleCap
TCAP
TriangleNts
TCCA
TwoHarbors
TWO
UnderArmour C UA
UnderArmour A UAA
VoyaPrimeRate PPR
WesternGasPtrs WES
WideOpenWest WOW
XeriumTech
XRM
IntlInst r
Explanatory Notes
Fund
materials and specialty products, executives said Thursday
after the company reported
better-than-anticipated profits
in its first quarterly report
since the merger closed.
In its latest quarter, DowDuPont reported pro forma net
income of $232 million, down
53% from a year ago. Excluding
items including restructuring,
pro forma net income rose 14%
to $1.29 billion, or 55 cents a
share. Almost all segments re-
28.65
18.07
28.96
62.05
21.19
26.93
21.14
30.53
58.48
29.20
26.13
32.06
26.32
26.52
31.13
29.62
285.20
59.10
30.30
124.90
115.86
AIPoweredEquity AIEQ
DBCommodityDblLong DYY
DirexFinlBear3
FAZ
ETRACSMthPay2xLev DVHL
ETRACSWFBusDev BDCZ
GlbXSuperIncPfd SPFF
GuggBS2025HYCpBd BSJP
Inspire100ETF
BIBL
ProShShtBasicMat SBM
ProShShtDow30 DOG
ProShShtFinls
SEF
ProShUltShtDow30 SDOW
ProShUltShDow30 DXD
ProShrUSFnl
SKF
ProShrUS MSCI EAFE EFU
ProShrUS MSCI Jpn EWV
ProShrUSSemi SSG
2xLevLgETRACSWF LBDC
11.6
9.0
3.7
24.4
7.0
2.2
2.5
3.0
3.1
3.3
13.5
25.6
NA
11.5
17.3
28.5
16.2
32.4
24.8
13.0
11.6
5.0
7.7
7.7
8.0
7.9
33.7
13.5
12.1
16.9
31.4
25.7
35.2
20.29 -1.4
66.69 0.7 UBSWellsFargoETN BDCS
15.50 -5.0
30.18 -0.1 ETRACS2xBDC BDCL
16.53 -1.9
91.65 0.3 VanEckBDCIncome BIZD
86.72 -1.8
VOX
42.40 0.7 VangdTelecom
24.21 1.3
31.50 0.4
33.50 0.4
121.70 -1.2
CCF
30.34 0.4 Chase
3.16 4.6
31.78 2.2 LadenburgThalmann LTS
30.74 0.3
26.38 0.3
26.01 0.2
2.25 -2.1
AsteriasBiotherap AST
38.32 0.3
0.16 -3.5
BioPharmX
BPMX
32.62 0.5
2.27 3.9
Biotime
BTX
33.34 0.3
2.10 -6.4
CRH Medical
CRHM
24.80 0.7
0.09 -6.1
ComstockMining LODE
119.07 0.8 GoldStandrdVntr GSV
1.27 2.3
120.27 1.5 IsoRay
0.38 -11.3
ISR
126.09 0.3 PacGE pfB
27.06 -4.1
PCGpB
80.74 1.0 RegionalHlthProp RHE
0.41 56.3
99.41 0.1 TelInstrElec
2.40 1.3
TIK
235.17 0.3
41.92 0.3
25.15 0.6
50.25
... ACI Worldwide ACIW
25.00 -3.1
32.12 2.4 ALPS/DorseyMom SWIN
29.41 0.1
63.77 0.7 Ansys
155.14 9.6
ANSS
29.20 0.9 AdobeSystems ADBE
181.48 2.7
27.36 0.3 AlliedMotionTech AMOT
30.50 7.2
28.21 0.1 AlnylamPharm
147.63 10.3
ALNY
26.85 0.4 Altaba
72.47 -0.1
AABA
25.41
... AndinaAcqnIIUn ANDAU 12.00 17.6
29.13 0.4 AtlanticaYield
24.13 3.1
ABY
108.27 4.4
AveXis
AVXS
23.80 10.4
AxoGen
AXGN
5.64 10.5
BallardPower
BLDP
24.62 -0.7 Biomerica
3.18 6.2
BMRA
2.08 9.5 BlueprintMed
73.22 0.7
BPMC
13.06 -1.9 Bruker
32.09 -1.9
BRKR
19.75 -0.8 CB FinSvcs
30.50 0.2
CBFV
20.38 -3.1 CH Robinson
81.35 0.3
CHRW
12.30 -0.2 CME Group
140.57 3.1
CME
43.73 1.6
CRAI
24.96
... CRA Intl
43.84 1.8
25.02 -0.1 CadenceDesign CDNS
9.40 4.5
18.24 -0.4 CalumetSpecialty CLMT
18.68 4.2
CSIQ
15.76 -0.4 CanadianSolar
13.20 -1.3
11.97 -0.8 CanterburyPark CPHC
20.90 13.1
CWST
22.99 -0.9 CasellaWaste
157.80 -1.8
9.70 -0.6 CavcoIndustries CVCO
115.74 2.6
22.44 -1.5 CboeGlobalMkts CBOE
19.49 -0.2
CELC
23.60 -0.8 Celcuity
48.49 2.4
CHMG
27.62 -0.5 ChemungFinl
1.39 1.5
CNIT
10.32 -1.1 ChinaInfoTech
15.80 -5.7
Continues on Page B9
NYSE American highs - 2
NYSE American lows - 10
Nasdaq highs - 128
Net YTD
NAV Chg % Ret Fund
19.30 +0.02
15.35 +0.01
91.79 +0.20
31.08 +0.09
MCapVal
N Horiz
55.73 +0.34
9.51 +0.01
N Inc
OverS SF r
11.41 +0.03
23.24 +0.03
R2020
17.92 +0.02
R2025
R2030
26.41 +0.04
19.31 +0.03
R2035
R2040
27.75 +0.05
38.80 +0.10
Value
PRIMECAP Odyssey Fds
Growth r
35.59 +0.08
Principal Investors
DivIntlInst
NA
...
Prudential Cl Z & I
14.56 +0.02
TRBdZ
Schwab Funds
40.30 +0.01
S&P Sel
TIAA/CREF Funds
19.33 +0.01
EqIdxInst
IntlEqIdxInst 20.39 +0.05
Tweedy Browne Fds
28.48 +0.02
GblValue
VANGUARD ADMIRAL
238.44 +0.07
500Adml
34.07 +0.02
BalAdml
11.81 +0.01
CAITAdml
CapOpAdml r 154.58 -0.03
37.27 +0.13
EMAdmr
76.46 +0.19
EqIncAdml
ExtndAdml
82.18 +0.08
GNMAAdml 10.53 +0.02
70.14 -0.16
GrwthAdml
HlthCareAdml r 88.30 -0.39
...
HYCorAdml r 5.97
InfProAd
25.80 +0.04
94.76 +0.07
IntlGrAdml
ITBondAdml 11.44 +0.01
...
ITIGradeAdml 9.82
LTGradeAdml 10.66 +0.03
MidCpAdml 184.06 -0.38
11.38 +0.01
MuHYAdml
MuIntAdml
14.18 +0.01
11.66 +0.01
MuLTAdml
10.97 +0.01
MuLtdAdml
MuShtAdml 15.78
...
PrmcpAdml r 135.37 +0.11
REITAdml r 118.07 +0.99
SmCapAdml 68.63 +0.12
STBondAdml 10.44 +0.01
STIGradeAdml 10.68
...
10.78 +0.01
TotBdAdml
TotIntBdIdxAdm 21.94 +0.03
TotIntlAdmIdx r 30.11 +0.07
64.49 +0.03
TotStAdml
14.25 +0.03
TxMIn r
39.85 +0.09
ValAdml
WdsrllAdml
69.06 -0.05
65.39 +0.10
WellsIAdml
IntlValEq
NA MCapGro
13.1
16.6
52-Wk %
Sym Hi/Lo Chg
NYSE Arca lows - 22
19.6 IntlStk
8.1
52-Wk %
Sym Hi/Lo Chg Stock
iShU.S.Insurance IAK
iShEdgeMSCIMultif ACWF
iShGlobal100
IOO
iShMSCIAllPeruCap EPU
iShMSCIAustriaCap EWO
iShMSCIFranceETF EWQ
iShMSCIGermanyETF EWG
JPM DivRetIntl JPIH
OShFTSEAsiaPacQlty OASI
OppGlbESGRevenue ESGF
PIMCO DynMultIn MFDX
PwrShIndia
PIN
PwrShRussTop200Val PXLV
PwrShS&P500xRate XRLV
PwrShS&P500Mom SPMO
PwrShWldrClean PBW
ProShrUltraDow30 DDM
ProShrUltraFnl UYG
ProShrUltraJapan EZJ
ProShUltDow30 UDOW
SPDRS&P1500ValTilt VLU
SPDR DJIA Tr
DIA
SPDR EurSTOXX FEZ
SpinFieldUVAUncons FFIU
USAACoreInterBd UITB
USGasolineFd
UGA
VanEckIndiaSC SCIF
VanEckOilRefin CRAK
WisdTrIndiaEarn EPI
XtrkrsMSCIAWxUS DBAW
XtrkrsMSCIAWxUSHi HDAW
XtrkrsMSCIHiDiv HDEF
XtrkrsMSCIEurope DBEU
Net YTD
NAV Chg % Ret Fund
69.87 -0.08
Harding Loevner
NA
...
Invesco Funds A
EqIncA
11.29 +0.02
John Hancock Class 1
15.97 +0.01
LSBalncd
17.14 +0.01
LSGwth
John Hancock Instl
23.97
...
DispValMCI
JPMorgan Funds
MdCpVal L
39.69 -0.20
JPMorgan R Class
CoreBond
11.65 +0.01
Lazard Instl
19.75 +0.06
EmgMktEq
Loomis Sayles Fds
14.18 +0.01
LSBondI
Lord Abbett A
ShtDurIncmA p 4.27
...
Lord Abbett F
ShtDurIncm
4.27
...
Metropolitan West
10.68 +0.02
TotRetBd
10.67 +0.01
TotRetBdI
10.05 +0.02
TRBdPlan
MFS Funds Class I
ValueI
40.67 -0.07
MFS Funds Instl
IntlEq
25.45 +0.01
Mutual Series
NA
...
GlbDiscA
Oakmark Funds Invest
33.93 +0.01
EqtyInc r
85.00 +0.17
Oakmark
OakmrkInt
29.18 +0.07
Old Westbury Fds
LrgCpStr
14.91 +0.04
Oppenheimer Y
42.34 +0.07
DevMktY
43.29 -0.12
IntGrowY
Parnassus Fds
44.04 +0.01
ParnEqFd
PIMCO Fds Instl
AllAsset
12.15
...
TotRt
10.30 +0.02
PIMCO Funds A
12.45
...
IncomeFd
PIMCO Funds D
12.45
...
IncomeFd
PIMCO Funds Instl
IncomeFd
12.45
...
PIMCO Funds P
IncomeP
12.45
...
Price Funds
97.10 +0.15
BlChip
29.73 +0.10
CapApp
34.80 +0.07
EqInc
69.34 +0.02
EqIndex
69.97 +0.02
Growth
HelSci
74.29 +0.78
InstlCapG
39.52 +0.12
IntlEq
0.5
0.1
0.4
2.1
4.0
0.9
0.2
0.3
0.3
0.1
0.3
0.1
0.3
0.2
0.2
0.4
1.6
0.4
0.2
0.8
0.7
ported sales increases except
for agriculture.
Dow and DuPont in 2015
pitched their blockbuster combination as a way to unite respective strengths ranging
from farm pesticides to silicone
and bulletproof fibers. Some
activist investors contested the
breakup strategy, arguing that
the split as originally proposed
wouldn’t create the most competitive spinoffs. In September
DowDuPont revised the plan.
26.2
19.8
21.8
7.0
28.7
3.8
25.8
13.9
15.6
17.2
18.5
19.6
15.3
24.3
NA
6.0
17.1
16.5
23.2
13.7
17.1
11.2
4.7
24.4
27.6
14.1
14.0
2.2
23.5
16.5
7.1
2.2
40.7
4.0
4.3
9.7
14.1
6.7
4.5
5.6
2.6
1.3
24.4
3.8
12.1
1.5
2.2
3.4
2.1
24.6
16.5
23.8
12.0
11.9
8.3
WelltnAdml
WndsrAdml
Net YTD
NAV Chg % Ret
73.94 +0.09
78.97 -0.15
VANGUARD FDS
26.26 +0.05
DivdGro
209.30 -0.94
HlthCare r
INSTTRF2020 22.56 +0.03
INSTTRF2025 22.83 +0.03
INSTTRF2030 23.02 +0.03
INSTTRF2035 23.22 +0.03
INSTTRF2040 23.41 +0.03
INSTTRF2045 23.55 +0.03
39.45 +0.02
IntlVal
LifeGro
33.19 +0.04
26.97 +0.04
LifeMod
26.83
...
PrmcpCor
33.17
...
SelValu r
STAR
27.19 +0.01
10.68
...
STIGrade
15.94 +0.02
TgtRe2015
TgtRe2020
31.65 +0.04
18.55 +0.02
TgtRe2025
33.51 +0.04
TgtRe2030
20.59 +0.03
TgtRe2035
TgtRe2040
35.45 +0.04
22.27 +0.02
TgtRe2045
35.83 +0.04
TgtRe2050
TgtRetInc
13.59 +0.01
TotIntBdIxInv 10.97 +0.01
26.99 +0.04
WellsI
Welltn
42.82 +0.06
38.91 -0.03
WndsrII
VANGUARD INDEX FDS
238.41 +0.07
500
ExtndIstPl
202.80 +0.19
55.43 +0.19
SmValAdml
10.75 +0.02
TotBd2
TotIntl
18.00 +0.04
64.46 +0.02
TotSt
VANGUARD INSTL FDS
34.08 +0.03
BalInst
DevMktsIndInst 14.27 +0.03
DevMktsInxInst 22.31 +0.05
82.18 +0.08
ExtndInst
GrwthInst
70.15 -0.16
10.51 +0.02
InPrSeIn
235.25 +0.07
InstIdx
InstPlus
235.27 +0.08
57.84 +0.02
InstTStPlus
40.66 -0.08
MidCpInst
MidCpIstPl 200.53 -0.41
SmCapInst
68.63 +0.12
...
STIGradeInst 10.68
10.78 +0.01
TotBdInst
TotBdInst2
10.75 +0.02
10.78 +0.01
TotBdInstPl
TotIntBdIdxInst 32.92 +0.04
TotIntlInstIdx r 120.42 +0.29
TotItlInstPlId r 120.44 +0.29
64.50 +0.03
TotStInst
39.85 +0.09
ValueInst
Western Asset
CorePlusBdI
NA
...
11.7
15.0
13.8
16.4
12.0
13.5
14.8
16.1
17.4
17.9
24.3
16.1
12.8
21.0
15.3
15.6
2.2
9.9
12.0
13.5
14.8
16.1
17.3
17.9
17.9
7.3
2.1
8.2
11.7
11.8
17.0
14.0
8.0
3.4
24.5
16.4
11.1
23.9
23.9
14.0
23.5
2.2
17.1
17.1
16.5
14.1
14.1
12.1
2.3
3.4
3.4
3.4
2.2
24.7
24.7
16.6
12.0
NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | B7
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
23516.26 s 81.25, or 0.35%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.31 19.61
P/E estimate *
19.54 17.19
Dividend yield
2.18
2.62
All-time high 23516.26, 11/02/17
Nasdaq Composite Index
Last
2579.85 s 0.49, or 0.02%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.16 24.31
P/E estimate *
19.49 18.02
Dividend yield
1.92
2.16
All-time high: 2581.07, 10/27/17
Last Year ago
6714.94 t 1.59, or 0.02%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.00
24.09
P/E estimate *
21.55
19.35
Dividend yield
1.07
1.21
All-time high: 6727.67, 10/31/17
Current divisor 0.14523396877348
23500
2570
6700
23000
2540
6600
22500
2510
6500
22000
2480
6400
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
21500
65-day moving average
2450
65-day moving average
6300
65-day moving average
21000
6200
2420
Bars measure the point change from session's open
20500
July
Aug.
Sept.
6100
2390
July
Oct.
Aug.
Sept.
Aug.
Oct.
Sept.
Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
23531.38 23350.98 23516.26
81.25
0.35
9811.87
9679.28
9778.33
-5.48
755.25
746.54
750.97
2.02
0.27
26728.99 26581.63 26714.24
687.22
682.97
685.37
8.02
-2.11
0.03
Nasdaq Stock Market
Nasdaq Composite
6719.97
Nasdaq 100
6243.74
6677.55
6194.58
-0.06
-0.31
6714.94 -1.59
6236.39 -12.25
23516.26 17888.28
31.2
19.0
10038.13
8053.09
21.4
8.1
3.8
754.80
625.44
14.3
13.9
8.0
26743.96 21514.15
691.56
521.59
24.1
31.4
14.8
13.9
8.4
8.5
6727.67
6248.65
-0.02
-0.20
5046.37
4660.46
32.7
33.3
10.6
24.7
28.2
13.2
14.5
Standard & Poor's
500 Index
2581.11
2566.17
2579.85
0.49
0.02
2581.07
2085.18
23.5
15.2
8.5
MidCap 400
SmallCap 600
1837.71
909.58
1826.18
900.74
1831.34
906.67
1.24
0.25
0.07
0.03
1839.12
918.72
1476.68
703.64
24.0
28.9
10.3
8.2
8.9
10.1
Other Indexes
Russell 2000
1499.94
1487.73
1496.55
3.77
0.25
1512.09
1156.89
29.4
10.3
8.4
12377.09 12316.77 12372.96
10.08
12430.52 10289.35
NYSE Composite
541.72
538.80
540.25
-0.71
NYSE Arca Biotech
4166.31
4088.29
4145.28
59.50
NYSE Arca Pharma
535.88
532.25
533.85
-2.36
KBW Bank
102.49
100.81
0.62
PHLX§ Gold/Silver
102.31
82.28
81.00
0.02
PHLX§ Oil Service
81.30
135.05
131.80
132.89
-0.63
1280.60
10.89
1263.76
9.67
1277.34
9.93
Value Line
PHLX§ Semiconductor
CBOE Volatility
0.08
-0.13
1.46
-0.44
0.61
0.03
-0.47
5.83
-0.27 -2.65
0.46
Philadelphia Stock Exchange
11.9
4.5
455.65
18.6
6.7
3.0
4304.77
2834.14
46.3
34.8
7.3
560.52
463.78
15.0
10.9
0.2
102.31
73.36
39.3
11.5
12.4
96.72
73.03
-9.0
3.1
7.8
192.66
117.79
-11.9
802.88 58.1
9.19 -55.0
1277.34
22.51
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.
Volume, Advancers, Decliners
Region/Country Index
Close
Most-active issues in late trading
Company
Volume
(000)
Symbol
Last
Apple
AAPL
8,306.9 172.08
Intel
INTC
8,232.6
SPDR S&P 500
SPY
Net chg
After Hours
% chg
High
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5931.70
Shanghai Composite 3383.31
Hang Seng
28518.64
S&P BSE Sensex
33573.22
Nikkei Stock Avg
22539.12
Straits Times
3380.50
Kospi
2546.36
Weighted
10788.51
394.94
399.80
4102.26
5510.50
13440.93
1427.62
23046.05
553.83
1118.66
10457.80
597.41
9279.65
7555.32
Latest
% chg
YTD
% chg
0.17
0.08
0.14
17.8
18.2
21.7
0.05
0.29
Closed
…
–0.09
–14.34
Closed
…
–57.68 –1.36
14.8
22.6
4.8
5.9
29.8
–1.83 –0.46
–0.16
–0.64
–0.35
–14.24
–0.07
–3.79
–0.18
–24.58
–15.28 –1.06
0.24
54.06
–0.12
–0.66
–7.77 –0.69
–48.90 –0.47
–0.03
–0.19
0.13
11.83
0.90
67.36
9.3
14.1
13.8
13.3
17.1
–2.9
19.8
14.6
–2.9
11.8
11.8
12.9
5.8
–6.10
–12.60
–75.42
–27.05
119.04
–11.11
–10.11
–17.85
4.7
9.0
29.6
26.1
17.9
17.3
25.7
16.6
5.03
0.30
0.36
2981.65
385.54
260.43
The Global Dow
DJ Global Index
DJ Global ex U.S.
DJ Americas
620.17
Sao Paulo Bovespa 73823.74
S&P/TSX Comp
16014.99
S&P/BMV IPC
48334.45
Santiago IPSA
4182.63
2.36 174.35 166.68
47.25
0.15
0.32
7,331.9 257.69
0.10
0.04 257.77 257.17
47.33
46.41
6,475.9
25.06
-0.04
-0.16
25.10
25.06
5,573.2
12.43
0.01
0.08
12.45
12.31
iShares MSCI Emg Markets EEM
5,057.2
46.76
0.18
0.39
46.76
46.55
Starbucks
SBUX
4,376.7
53.05
-1.82
-3.32
55.27
50.75
General Electric
GE
3,869.9
19.93
-0.01
-0.05
19.95
19.82
iShares MSCI Hong Kong EWH
F
Ford Motor
Percentage gainers…
Diana Containerships
DCIX
28.2
3.45
0.95
38.00
3.90
2.70
Boot Barn Holdings
BOOT
6.7
9.89
1.49
17.74
10.10
8.40
Cardtronics Cl A
CATM
77.1
21.45
2.98
16.13
25.99
18.47
Floor Decor Cl A
FND
15.4
42.20
4.43
11.73
42.20
38.84
Entravision Commun
EVC
7.9
5.75
0.60
11.55
6.01
5.10
CBL Assocs Properties CBL
...And losers
228.8
6.95
-1.04
-13.02
7.99
6.90
Clean Energy Fuels
CLNE
67.9
2.10
-0.29
-12.13
2.39
1.90
-27.7 -18.9
Bovie Medical
BVX
8.4
3.50
-0.47
-11.84
3.95
3.50
40.9 25.8
-29.3 -10.9
Pandora Media
P
714.4
6.56
-0.85
-11.47
7.70
6.56
Tableau Software
DATA
307.0
73.00
-9.17
-11.16
82.20
70.76
–0.10
–0.37
–0.26
–0.08
0.53
–0.33
–0.40
–0.17
Company
Symbol
ION Geophysical
Payment Data Systems
AAC Holdings
Electro Scientific Inds
Dicerna Pharmaceuticals
IO
Almost Family
Xenetic Biosciences
China Internet Nationwide
U.S. Global Investors A
Juno Therapeutics
AFAM
Resolute Forest Products
Med Transcription Billing
Lantheus Holdings
ZAGG Inc
Alliance One Intl
RFP
High
52-Week
Low
% chg
11.95
4.10
13.06
21.98
7.89
3.20
1.17
5.99
4.54
2.42
86.7
86.7
28.5
355.8
162.0
Funko Cl A
Kemet
TreeHouse Foods
Impinj
Allena Pharmaceuticals
FNKO
51.30 10.90
XBIO
2.80 0.59
CIFS
37.89 7.69
GROW
3.27 0.66
JUNO
59.91 11.60
26.98
26.70
25.46
25.29
24.01
62.95 38.05
5.90 1.75
43.30 10.81
3.32 1.25
60.00 17.52
25.9
-30.0
...
124.0
163.7
OraSure Technologies
Nuvectra
Newell Brands
Oclaro Inc
MicroVision
OSUR
7.20
4.09
22.60
18.85
13.20
23.08
21.36
20.86
20.06
20.00
7.40
5.44
22.75
19.38
19.50
80.0
381.8
162.8
201.6
-8.3
Habit Restaurants Cl A
ARC Document Solutions
BioScrip
Teva Pharmaceutical ADR
AMAG Pharmaceuticals
HABT
AAC
ESIO
DRNA
MTBC
LNTH
ZAGG
AOI
1.35
0.72
3.90
3.15
2.20
3.70
0.29
7.95
5.65
9.85
Most Active Stocks
Company
Symbol
Teva Pharmaceutical ADR
General Electric
AT&T
Bank of America
Brocade Comms Sys
TEVA
Finl Select Sector SPDR
SPDR S&P 500
Advanced Micro Devices
Newell Brands
Chesapeake Energy
XLF
Volume % chg from Latest Session
(000) 65-day avg Close % chg
117,209
77,656
T
71,531
BAC
58,726
BRCD
57,519
346.1
43.6
158.2
-9.3
628.7
11.23 -19.90
19.94 -0.40
33.17 -1.13
27.87 1.24
12.58 7.16
50,238
49,064
47,438
47,303
42,963
-1.4
-23.4
-18.3
852.2
45.9
26.89 0.94
257.59 0.04
10.85 0.46
30.01 -26.80
3.66 -7.58
GE
SPY
AMD
NWL
CHK
A consumer rate against its
benchmark over the past year
Home Equity
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
6.00%
Home equity loan
t
5.00
4.00
t
3.00
2.00
N D J FMAM J J A S ON
2017
1.95%
414-258-5880
Cambridge Savings Bank
2.99%
Cambridge, MA
888-418-5626
Thursday
City National Bank of West Virginia
2.99%
Charleston, WV
304-925-6611
Third Federal S&LA
Cleveland, OH
3.24%
888-THIRDFED
Dollar Bank, a Federal Savings Bank
3.74%
Pittsburgh, PA
800-828-5527
t
Prime rate
WaterStone Bank, SSB
Wauwatosa, WI
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.38
1.39
Money market, annual yield
0.32
0.32
Five-year CD, annual yield
1.47
1.47
30-year mortgage, fixed†
4.00
3.95
15-year mortgage, fixed†
3.30
3.24
Jumbo mortgages, $424,100-plus† 4.31
4.38
Five-year adj mortgage (ARM)† 3.48
3.53
New-car loan, 48-month
3.02
3.01
HELOC, $30,000
5.19
5.19
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.61
l
2.85
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.39
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.16
-0.10
-0.06
-0.12
0.01
-0.01
-0.29
-0.23
0.74
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
BIOS
TEVA
AMAG
Nasdaq
NYSE Arca
Total volume*2,236,529,092 216,607,084
Adv. volume*1,063,478,414 140,194,810
Decl. volume*1,133,760,449 67,467,149
Issues traded
3,042
1,289
Advances
1,639
728
Declines
1,265
531
Unchanged
138
30
New highs
128
54
New lows
76
22
Closing tick
608
59
Closing Arms†
1.38
0.71
Block trades*
8,012
1,116
* 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.
5
2.25
0
1.50
–5
0.75
–10
0.00
–15
30
Latest Session
Close Net chg % chg
High
7.07 -4.93 -41.08
15.98 -8.84 -35.62
43.03 -23.33 -35.16
21.55 -11.25 -34.30
9.98 -4.02 -28.71
...
...
27.35 3.60
90.42 40.50
60.85 19.97
...
...
...
335.4
-38.3
-14.8
...
13.76 -5.26 -27.66
10.06 -3.74 -27.10
30.01 -10.99 -26.80
5.96 -2.06 -25.69
1.66 -0.55 -24.89
23.01 7.09
15.00 4.63
55.08 29.70
11.30 5.93
3.25 1.01
88.2
104.3
-37.0
-25.9
58.1
-24.70
-21.62
-20.42
-19.90
-19.75
19.75 9.05
5.55 3.01
3.39 0.98
43.46 10.85
36.83 11.93
-34.5
0.6
-26.0
-71.4
-46.2
9.30
3.48
1.91
11.23
12.80
-3.05
-0.96
-0.49
-2.79
-3.15
52-Week
Low
% chg
Ranked by change from 65-day average*
SYLD
GBF
AMRB
GPMT
CFCO
ATTU
IGN
THS
Volume % chg from Latest Session
(000) 65-day avg Close % chg
11215 29.35
3047 36.13
2656 114.21
2048 14.93
1966 17.76
5,270
217
602
170
3,515
1936
1856
1677
1627
1581
7,244
8,391
464
224
13,844
0.38
0.35
0.13
-1.13
-5.43
21.00 -17.55
9.68 -11.76
7.65 16.44
45.40 -2.18
43.03 -35.16
52-Week
High
Low
29.71
36.40
115.82
15.99
19.30
22.75
29.04
111.23
12.00
17.70
33.34 10.83
12.25 9.55
9.54 4.15
47.91 39.94
90.42 40.50
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
WSJ Dollar index
s
Euro
s Yen
Country/currency
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Americas
Argentina peso
.0571 17.5210
Brazil real
.3060 3.2681
Canada dollar
.7808 1.2808
Chile peso
.001590 629.00
Colombia peso
.0003303 3028.00
Ecuador US dollar
1
1
Mexico peso
.0527 18.9826
Peru new sol
.2942 3.399
Uruguay peso
.03431 29.1500
Venezuela b. fuerte .090905 11.0006
10.4
0.4
–4.7
–6.1
0.9
unch
–8.5
1.4
–0.7
10.1
Asia-Pacific
2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.117
2.191
2.237
1.482 –1.142 2.051
2.347
3.047
2.610
5.233
2.870
1.991
2.452
3.085
2.660
5.157
2.950
1.978
2.609
3.390
2.790
6.448
3.120
2.516
1.783
2.730
2.100
4.948
2.270
1.677
1.993
3.169
0.927
9.084
0.554
1.745
807.661
5.431
5.544
6.290
5.279
6.463 5.656
1.902
3.991
2.442
4.136
2.122
2.630
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7714 1.2963
China yuan
.1513 6.6102
Hong Kong dollar
.1282 7.8012
India rupee
.01550 64.505
Indonesia rupiah .0000741 13493
Japan yen
.008766 114.08
Kazakhstan tenge .002987 334.74
Macau pataca
.1244 8.0391
Malaysia ringgit
.2362 4.2345
New Zealand dollar
.6914 1.4463
Pakistan rupee
.00950 105.255
Philippines peso
.0195 51.386
Singapore dollar
.7359 1.3589
South Korea won .0008990 1112.35
Sri Lanka rupee
.0065104 153.60
Taiwan dollar
.03313 30.180
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–6.6
–4.8
0.6
–5.1
–0.2
–2.5
0.3
1.6
–5.6
0.2
0.8
3.6
–6.1
–7.9
3.5
–7.0
US$vs,
YTDchg
Thurs
in US$ per US$ (%)
Country/currency
.03022 33.090 –7.6
.00004403 22713 –0.3
Thailand baht
Vietnam dong
Europe
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
.04538 22.037 –14.2
.1567 6.3836 –9.7
1.1658 .8578 –9.8
.003750 266.64 –9.4
.009428 106.07 –6.1
.1229 8.1356 –5.9
.2753 3.6323 –13.2
.01718 58.197 –5.0
.1191 8.3946 –7.8
1.0006 .9994 –1.9
.2634 3.7972 7.8
.0371 26.9396 –0.5
1.3058 .7658 –5.5
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6472 .3778 0.2
.0566 17.6535 –2.6
.2851 3.5076 –8.9
3.3033 .3027 –0.9
2.5950 .3854 0.1
.2746 3.642 0.04
.2666 3.7504 –0.01
.0715 13.9783 2.1
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.72 –0.03–0.04 –5.62
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
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
ARC
NTLA
1461.370
EMBI Global, J.P. Morgan
MVIS
Intellia Therapeutics
CF Cl A
Attunity
iShares NA Tech-Mult
TreeHouse Foods
26.93 19.40
258.43 208.38
15.65
6.22
55.08 29.70
8.20
3.41
10-yr Treasury, Ryan ALM 1734.358
DJ Corporate
380.087
Aggregate, Barclays Capital 1942.220
High Yield 100, Merrill Lynch 2866.043
Fixed-Rate MBS, Barclays 1987.230
Muni Master, Merrill
521.467
Treasury, Ryan ALM
OCLR
SPSM
10%
3.00
Close
NWL
SPDR Portfolio Small Cap
Cambria Shareholder Yield
iShares Govt/Credit Bond
American River Bankshares
Granite Point Mtg Trust
10.85
19.63
32.93
16.35
11.43
Corporate Borrowing Rates and Yields
Bond total return index
NVTR
43.46
32.38
43.03
27.98
12.72
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
ALNA
Symbol
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
5.19%
PI
Company
Forex Race
notes and bonds
Bankrate.com avg†:
THS
52-Week
High
Low
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
Selected rates
KEM
Volume Movers
s
U.S. consumer rates
Symbol
53.21
40.25
32.72
29.12
28.19
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
4.15
0.97
2.47
4.75
1.59
11.95
3.38
10.02
21.06
7.23
PYDS
Total volume* 909,187,337 10,586,396
Adv. volume* 393,291,239 5,056,672
Decl. volume* 502,395,269 5,382,762
Issues traded
3,065
332
Advances
1,468
149
Declines
1,492
167
Unchanged
105
16
New highs
155
2
New lows
92
10
Closing tick
156
46
Closing Arms†
1.40
1.06
Block trades*
6,494
103
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
3.97
Percentage Gainers...
Net chg
Americas
Brazil
Canada
Mexico
Chile
Interest rate
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
20.0
545.98
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
604.29
1.05
188.13
54.54
2.935
1274.90
0.18
0.24
0.042
0.80
0.17
604.29
527.06
0.10 195.14
54.54
0.44
3.93
1.45
0.06 1346.00
166.50
42.53
2.56
1127.80
% Chg
14.27
YTD
% chg
6.53
2.59 -2.28
1.53
22.12
5.99 -21.19
-2.09 10.86
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B8 | Friday, November 3, 2017
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1300
3.1470
3.1275
3.1355 0.0025
Nov
Dec
3.1370
3.1710
3.1145
3.1435 0.0010
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
1272.20 1274.80
1270.30 1274.90
0.80
Dec
1275.20 1285.10
1274.00 1278.10
0.80
Feb'18
1279.70 1289.20
1278.30 1282.40
0.80
April
1285.00 1292.90
1283.00 1286.40
0.90
June
1290.40 1297.00
1286.60 1290.20
0.80
Dec
1304.30 1307.60
1298.90 1302.40
0.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
1001.55 1003.80
985.35
994.00 –4.15
Dec
March'18 986.00 995.15 s
980.05
985.90 –4.15
Platinum (NYM)-50 troy oz.; $ per troy oz.
914.40
917.20
914.00
924.10 –8.90
Nov
Jan'18
935.40
937.90
926.10
927.80 –8.90
Silver (CMX)-5,000 troy oz.; $ per troy oz.
17.065
17.065
17.060
17.094 –0.038
Nov
Dec
17.150
17.255
17.050
17.137 –0.039
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
54.28
54.84
53.99
54.54
0.24
Dec
Jan'18
54.52
55.04
54.19
54.77
0.26
Feb
54.59
55.15
54.29
54.89
0.27
March
54.60
55.17
54.32
54.93
0.27
June
54.15
54.79
53.96
54.58
0.31
Dec
52.66
53.16
52.51
52.98
0.24
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8632
1.8673
1.8380
1.8539 –.0086
Dec
Jan'18
1.8637
1.8680
1.8400
1.8555 –.0078
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7460
1.7874 s
1.7340
1.7697 .0287
Dec
Jan'18
1.7188
1.7478 s
1.7081
1.7347 .0198
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.900
2.957
2.881
2.935
.042
Dec
Jan'18
3.019
3.076
3.005
3.051
.034
Feb
3.025
3.083
3.011
3.058
.034
March
2.984
3.051
2.980
3.025
.033
April
2.850
2.894
2.844
2.875
.022
May
2.836
2.877
2.836
2.861
.020
Contract
High hilo
Low
Settle
Open
interest
Chg
Corn (CBT)-5,000 bu.; cents per bu.
347.75
352.00
347.50
350.50
Dec
March'18 361.25 365.25
360.75
364.00
Oats (CBT)-5,000 bu.; cents per bu.
272.00
272.75
264.25
264.50
Dec
March'18 274.00 274.00
269.00
269.50
Soybeans (CBT)-5,000 bu.; cents per bu.
979.50
989.50
979.50
989.00
Nov
Jan'18
990.25 1000.50
990.00
999.25
Soybean Meal (CBT)-100 tons; $ per ton.
313.50
317.80
313.30
317.40
Dec
Jan'18
315.60
319.80
315.40
319.40
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
34.83
35.10
34.59
34.86
Dec
Jan'18
35.01
35.25
34.75
35.02
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1125.00 1125.00
1115.00 1115.00
Nov
Jan'18
1155.50 1155.50
1143.50 1143.50
Wheat (CBT)-5,000 bu.; cents per bu.
417.50
426.75
417.50
426.00
Dec
March'18 436.00 445.50
435.75
444.50
Wheat (KC)-5,000 bu.; cents per bu.
415.25
426.75
415.25
425.75
Dec
March'18 433.50 444.25
433.25
443.50
Wheat (MPLS)-5,000 bu.; cents per bu.
613.50
624.00
613.50
622.75
Dec
March'18 627.75 638.25
627.75
636.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
159.725 160.550 s
157.500 157.925
Nov
Jan'18
160.725 161.550 s
157.375 158.225
Cattle-Live (CME)-40,000 lbs.; cents per lb.
126.325 127.875 s
123.900 124.325
Dec
Feb'18
129.650 130.625 s
128.000 128.750
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
66.475
66.475
65.300
65.800
Dec
Feb'18
71.950
72.225
71.000
72.050
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
468.60
471.00
438.00
449.00
Nov
Jan'18
454.20
456.50 s
443.60
443.60
Milk (CME)-200,000 lbs., cents per lb.
1,317
152,545
135
372,240
97,120
16,779
14,750
10,552
29,746
5,041
9
70,521
264
143,592
560,089
337,388
146,764
249,437
217,512
269,670
138,611
84,275
161,419
87,562
323,458
228,433
83,911
171,023
123,120
78,235
2.25 770,705
2.25 356,368
–7.00
–5.50
4,830
2,693
8.00
9,125
8.00 322,388
3.80 125,179
3.70 95,489
–.04 142,972
–.04 105,874
–5.00
–7.00
161
9,155
8.00 286,564
8.50 140,503
10.00 158,677
10.00 93,309
8.75
8.75
34,725
25,997
–1.775
–2.425
8,794
28,844
–2.275 129,993
–1.300 97,199
–.800 105,328
–.100 63,426
–17.40
–10.00
757
5,017
Thursday, November 2, 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
17.0800
12917
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
0.9573
1.0416
2.690
2.700
1.990
2.480
2.610
0.930
2.650
57.850
11.750
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Metals
Other metals
LBMA Platinum Price PM
*931.0
Platinum,Engelhard industrial
938.0
Platinum,Engelhard fabricated
1038.0
Palladium,Engelhard industrial
1013.0
Palladium,Engelhard fabricated
1113.0
Aluminum, LME, $ per metric ton
*2188.0
Copper,Comex spot
3.1355
Iron Ore, 62% Fe CFR China-s
59.3
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
620
Fibers and Textiles
Gold, per troy oz
1279.82
1375.81
1279.20
1419.91
*1279.25
*1277.05
1328.50
1341.27
1341.27
1548.16
1255.11
1341.27
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.
17.1700
20.6040
17.1250
21.4060
£12.9800
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6100
0.6833
*79.25
n.a.
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
n.a.
74
3.5050
93.2
473.0
230
88
220
2.9450
372.00
24.00
7.7313
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
16.65
15.88
16.74
15.99
Settle
16.46
15.69
Cocoa (ICE-US)-10 metric tons; $ per ton.
Cash Prices | WSJ.com/commodities
Energy
Contract
High hilo
Low
Open
Nov
Dec
Agriculture Futures
Open
interest
WSJ.com/commodities
Thursday
313.90
9.4950
7.5775
4.3450
3.5775
5.2750
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
185.29
172.59
0.8481
2.2225
171.50
174.00
72.50
2344
1.2209
1.4179
0.8950
15.60
0.78
67.08
n.a.
0.9316
n.a.
165.75
Fats and Oils
34.5500
n.a.
0.3600
0.3349
0.2550
n.a.
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
Chg
16.56
15.73
Open
interest
–.07
–.16
4,661
4,079
Dec
March'18
2,127
2,120
2,127
2,120
2,048
2,051
2,052
2,055
–71 86,529
–64 112,932
Dec
March'18
123.35
126.80
127.60
130.95
122.55
126.10
126.40
129.85
3.45 118,155
3.40 67,821
March
May
14.65
14.70
14.65
14.70
14.15
14.26
14.23
14.36
–.38 419,204
–.33 136,130
March
27.29
27.29
27.29
27.28
.03
Dec
March'18
68.40
68.35
69.30
69.00
68.11
68.06
69.08
68.97
.91 103,148
.82 88,636
151.90
152.05
152.80
155.40
151.90
151.25
155.75
154.90
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
Jan'18
2,743
2.85
2.85
51
5,694
Interest Rate Futures
Dec
152-290 153-220
152-220 153-150
23.0 732,276
March'18 152-000 152-150
151-210 152-110
24.0
9,659
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-310 125-085
124-285 125-045
7.5 3,201,191
March'18 124-240 124-295
124-190 124-265
8.0 27,899
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-055 117-102
117-040 117-072
3.2 3,078,271
March'18 116-292 117-025
116-287 117-002
3.7 37,822
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-207 107-220
107-202 107-210
.7 1,645,329
March'18 107-157 107-167
107-155 107-160
1.0 34,753
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Nov
98.843
98.843
98.843
98.843
… 212,829
Jan'18
98.625
98.630
t 98.620
98.630
… 355,393
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
100.953 101.203
100.938 101.063
.219 28,607
1 Month Libor (CME)-$3,000,000; pts of 100%
Dec
98.5575 98.5575
t 98.5575 98.5525 –.0075
2,264
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5850 98.5875
98.5825 98.5850 –.0025 96,341
Dec
98.4800 98.4900
98.4750 98.4850
… 1,709,356
March'18 98.3350 98.3450
98.3300 98.3400 .0050 1,270,831
Dec
98.0600 98.0800
98.0500 98.0750 .0200 1,578,604
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.8765
.8806
.8759
.8775
.0017
Settle
Chg
Open
interest
Dec
.8777
.8824
.8771
.8788
.0017 268,235
Nov
Dec
.7779
.7776
.7808
.7816
.7776
.7769
.7807
.7809
.0042
1,433
.0043 152,485
Nov
Dec
1.3294
1.3266
1.3294
1.3316
1.3051
1.3057
1.3066 –.0188
1,166
1.3078 –.0188 173,981
Dec
March'18
1.0001
1.0102
1.0078
1.0144
.9994
1.0091
1.0036
1.0104
.7674
.7675
.7697
.7695
.7669
.7727
.7726
.7723
.7721
.7722
.7674
.7669
.7693
.7691
.7669
.7715
.7713
.7711
.7710
.7709
Nov
Dec
.05218
.05202
.05226
.05246
.05202
.05189
.05270 .00053
29
.05238 .00053 176,479
Nov
Dec
1.1639
1.1651
1.1690
1.1715
1.1633
1.1640
1.1667
1.1688
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
Nov
Dec
Jan'18
Feb
March
Mexican Peso (CME)-MXN 500,000; $ per MXN
Euro (CME)-€125,000; $ per €
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Nov
Contract
High hilo
Low
Open
.0042
.0042
76,077
172
.0048
1,291
.0049 127,800
.0049
732
.0049
494
.0050
743
.0041
5,457
.0041 424,276
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23472 s
23459 s
23359
23358
23289
23280
23444
23436
2563.00
2576.70
S&P 500 Index (CME)-$250 x index
2571.90
Dec
2578.20
Mini S&P 500 (CME)-$50 x index
2571.50 2578.50
2562.25 2576.75
Dec
March'18 2572.50 2578.50
2562.75 2577.00
Mini S&P Midcap 400 (CME)-$100 x index
1824.80 1837.30
1818.60 1830.30
Dec
Mini Nasdaq 100 (CME)-$20 x index
6230.0
6263.0 s
6192.5
6235.8
Dec
March'18 6240.0 6275.0 s
6206.0
6248.8
Mini Russell 2000 (ICE-US)-$100 x index
1490.40 1501.70
1482.50 1496.20
Dec
March'18 1494.50 1499.30
1492.90 1497.20
Mini Russell 1000 (ICE-US)-$100 x index
1426.90 1428.50
1420.90 1427.90
Dec
U.S. Dollar Index (ICE-US)-$1,000 x index
94.67
94.70
94.31
94.59
Dec
March'18
94.32
94.40
94.09
94.30
2,675
72 156,890
72
1,644
1.90
59,360
2.00 3,131,769
2.00 71,058
1.30
91,921
–5.0 269,121
–5.0
1,672
4.30
4.30
66,219
78
1.40
254
–.12
–.12
46,633
2,209
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.3
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1942.22
Total
return
close
2.610 2.100 2.790
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1987.23
2.3
Mortgage-Backed
1954.37
1.8
Ginnie Mae (GNMA) 2.830 2.170 3.090
2.870 2.270 3.120
3.160 2.950 3.520
1165.41
2.5
Fannie mae (FNMA) 2.890 2.300 3.120
2623.69
4.0 Intermediate
2.710 2.360 3.010
1794.91
2.6
Freddie Mac (FHLMC) 2.900 2.310 3.130
3859.91
9.8 Long term
4.120 4.110 4.710
521.47
4.5 Muni Master
1.991 1.677 2.516
568.24
4.3 Double-A-rated
2.640 2.290 2.870
364.97
5.1 7-12 year
1.998 1.674 2.618
3.440 3.320 3.870
409.08
6.0
12-22 year
2.444 2.114 3.047
394.19
6.2
22-plus year
2.930 2.592 3.622
5.8
2784.09
U.S. Corporate
6.4
718.96
Triple-B-rated
High Yield Bonds Merrill Lynch
7.5
417.56
8.7
417.93
6.8
2866.04
High Yield Constrained 5.532 5.373 6.858
Global Government J.P. Morgan†
Triple-C-rated
10.517 9.584 13.189
544.17
1.3
Global Government 1.420 1.080 1.560
High Yield 100
5.233 4.948 6.448
756.42
0.4
Canada
2.010 1.390 2.190
379.64
7.8
Global High Yield Constrained 5.022 4.934 6.450
372.39
0.9
EMU§
1.048 0.835 1.363
308.26
7.4
Europe High Yield Constrained 1.993 1.993 3.814
712.66
0.9
France
0.810 0.540 1.210
U.S Agency Bloomberg Barclays
509.94
-0.9
Germany
0.430 0.170 0.620
1640.13
2.2
U.S Agency
1.980 1.330 2.010
287.79
-0.1
Japan
0.410 0.170 0.460
1466.60
1.4
10-20 years
1.820 1.140 1.840
562.53
-0.7
Netherlands
0.560 0.290 0.760
3361.78
7.5
20-plus years
2.930 2.670 3.460
920.93
U.K.
1.580 1.340 1.790
2.820 2.470 3.090
807.66
4.9 Yankee
2458.55
0.8
9.3 Emerging Markets ** 5.431 5.279 6.290
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 11/1
Source: WSJ Market Data Group
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Borrowing Benchmarks | WSJ.com/bonds
Global Government Bonds: Mapping Yields
Money Rates
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
November 2, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Inflation
Sept. index
level
Chg From (%)
Aug. '17 Sept. '16
0.53
0.19
246.819
252.941
2.2
1.7
International rates
Latest
Week
ago
Secondary market
30-year mortgage yields
30 days
60 days
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Week
Latest ago
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.38
0.15
Overnight repurchase
1.23
U.S.
1.10
U.S. government rates
1.75
1.75
1.75
1.00
1.1700
1.3125
1.0000
1.1600
1.1700
1.2000
1.3125
1.1600
1.1700
1.1900
0.3500
0.5625
0.2500
0.3000
0.3200
Federal funds
1.1700
1.3125
1.0500
1.1600
1.1700
Treasury bill auction
4 weeks
13 weeks
26 weeks
52-Week
high
low
Call money
3.00
3.00
3.00
2.25
90 days
1.28
1.30
1.31
0.62
Libor
One month
Three month
Six month
One year
1.24212
1.39139
1.58907
1.86317
1.24166
1.37796
1.56447
1.84289
1.24333
1.39139
1.58907
1.86317
0.53256
0.88094
1.24267
1.55622
1.020 1.005 1.300 0.240
1.130 1.105 1.180 0.350
1.260 1.245 1.260 0.500
One month
Three month
Six month
One year
-0.399
-0.378
-0.316
-0.233
-0.371
-0.331
-0.274
-0.183
Value
Traded
-0.403
-0.381
-0.322
-0.233
-0.376
-0.322
-0.212
-0.075
—52-WEEK—
High Low
-0.405
-0.381
-0.322
-0.233
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.276
-0.189
52-Week
High
Low
Treasury
MBS
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCI EAFE
iShMSCIEAFESC
AMLP
XLY
XLP
DGP
DZZ
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
10.68
91.33
53.13
24.07
5.59
68.48
26.89
96.59
80.94
71.90
109.74
105.04
123.06
65.48
56.17
62.45
259.37
182.61
74.42
59.02
109.35
94.85
71.65
51.40
12.27
120.99
87.97
116.15
106.74
70.52
69.91
63.06
–2.02 –15.2
–0.75 12.2
2.7
–0.24
0.25 19.6
–0.15 –18.4
–0.29 –9.1
0.94 15.7
–0.02 11.5
–0.46 17.4
0.57 15.6
1.4
0.03
0.1
...
0.4
0.07
0.20 22.1
0.14 32.3
0.16 23.7
0.05 15.3
0.04 10.4
8.2
0.12
0.05 15.1
1.2
0.05
7.1
0.26
–0.01 17.0
0.25 13.7
0.16 10.7
3.3
–0.02
1.6
–0.06
5.4
0.28
0.4
0.01
0.14 19.2
0.30 21.1
–0.22 26.5
ETF
Open Implied
Settle Change Interest Rate
2.750
Treasury Nov
Treasury Dec
Treasury Jan
98.840 -0.005 8062 1.160
98.705 -0.010 2038 1.295
98.610 -0.010 450 1.390
Weekly survey
Week ago Year ago
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
46.58
44.11
59.05
312.06
110.58
129.97
143.36
119.81
180.11
148.71
124.25
152.65
200.33
85.63
208.98
148.23
109.52
38.29
113.87
84.23
106.20
125.30
116.18
101.71
151.81
46.75
23.11
37.02
121.19
34.26
62.28
61.55
234.96
0.13
0.39
0.12
–0.04
0.05
0.07
0.04
0.01
0.01
0.30
0.50
0.03
0.04
–0.10
0.24
0.04
0.05
0.03
0.15
0.02
0.13
0.44
0.12
–0.03
–0.19
0.26
...
–0.05
0.07
0.29
...
0.02
0.33
33.0
27.5
20.9
17.6
2.2
23.9
15.2
6.9
17.0
10.3
4.5
14.8
12.0
6.5
14.7
21.7
8.0
2.9
0.6
–0.3
1.3
5.2
19.3
0.4
28.1
12.4
–1.1
1.6
10.6
23.8
15.0
15.6
19.0
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
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
1.491
2.343
0.821
1.805
1.827 t
2.664 t
l
1.846
1.968
1.650
20.7
23.0
l
2.712
2.857
2.356
31.8
33.9
55.2
France 2 -0.590 s
10 0.629 t
l
-0.590
-0.490
-220.6
-142.1
l
0.630
0.739
-0.600 -221.0
0.446
-171.6
-174.3
-135.9
Germany 2 -0.743 s
10 0.376 s
l
-0.745
-0.693
-236.1
-145.4
l
0.375
0.454
-0.633 -236.3
0.133 -196.9
-199.8
-167.1
Italy 2 -0.212 t
10 1.804 s
l
-0.209
-0.109
0.007
-183.2
-182.5
-81.4
l
1.803
2.144
1.598
-54.1
-57.0
-20.7
Japan 2 -0.161 s
10 0.053 t
l
-0.162
-0.113
-0.252
-107.4
0.061
0.071
-178.1
-0.058 -229.2
-177.7
l
-231.2
-186.3
Spain 2 -0.374 t
10 1.483 s
l
-0.363
-0.282
-0.179
-199.4
-197.9
-100.0
l
1.475
1.677
1.198
-86.2
-89.8
-60.7
0.407 t
1.265 t
l
0.484
0.432
0.183
-121.4
-113.2
-63.8
l
1.346
1.329
1.068
-108.1
-102.8
-73.7
1.750
U.K. 2
4.250
10
82.8
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Freddie Mac
30-year fixed
15-year fixed
Five-year ARM
0.100
1.450
DTCC GCF Repo Index Futures
ETF
Closing Chg YTD
Symbol Price (%) (%)
2.050
0.100
3.94
3.27
3.23
3.94
3.25
3.21
3.54
2.84
2.87
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Thursday, November 2, 2017
Closing Chg YTD
Symbol Price (%) (%)
0.500
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.616
2.373
10
0.000
Year ago
l
Australia 2
2.750
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.620 s
10 2.345 t
2.750
1.210 24.100 1.366 0.244
1.205 115.750 1.506 0.257
Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon Information, Ltd.
Largest 100 exchange-traded funds, latest session
1.500
2.250
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Country/
Coupon (%) Maturity, in years
0.050
DTCC GCF Repo Index
Latest
Euro Libor
Discount
Effective rate
High
Low
Bid
Offer
Latest
Commercial paper (AA financial)
Policy Rates
Euro zone
Switzerland
Britain
Australia
3.467 3.508 3.865 3.032
3.488 3.540 3.899 3.063
-0.372
-0.329
-0.276
-0.189
One month
Three month
Six month
One year
Other short-term rates
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
Week
Latest ago
Euro interbank offered rate (Euribor)
Fannie Mae
U.S. consumer price index
All items
Core
—52-WEEK—
High Low
** EMBI Global Index
Closing Chg YTD
Symbol Price (%) (%)
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
333.02
257.59
92.60
62.99
55.01
22.58
163.29
129.05
97.10
44.37
44.88
58.69
54.04
136.24
150.73
82.79
84.42
87.78
118.30
148.62
106.12
83.30
236.64
79.55
79.81
143.22
81.73
54.93
56.14
132.47
72.45
102.18
66.64
58.55
32.22
0.08
0.04
0.16
0.05
0.36
0.44
0.07
0.36
0.36
0.20
0.31
0.26
0.32
–0.25
–0.23
0.13
0.08
0.06
0.01
–0.22
–0.42
0.85
0.04
...
–0.03
0.19
0.10
0.09
0.21
0.02
0.11
0.23
–0.09
–0.20
0.19
10.4
15.2
8.2
30.3
13.3
7.9
34.4
6.7
14.0
21.4
25.4
22.4
22.3
22.2
18.9
9.3
1.6
2.4
15.6
12.9
9.2
0.9
15.3
0.1
0.6
11.1
1.2
1.2
22.4
14.9
18.8
9.9
16.1
18.2
14.8
Spread*, in basis points
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Select Income REIT
Delphi Automotive
Prudential Financial
Intel
SIR
DLPH
PRU
INTC
3.600
3.150
4.500
4.000
Feb. 1, ’20
Nov. 19, ’20
Nov. 15, ’20
Dec. 15, ’32
69
31
42
81
–52
–27
–15
–10
n.a.
n.a.
n.a.
77
24.58
99.31
112.94
47.10
1.53
–0.07
2.13
0.83
Hershey
Macy's Retail Holdings
Apple
Bnp Paribas
HSY
M
AAPL
BNP
2.300
4.500
2.850
5.000
Aug. 15, ’26
Dec. 15, ’34
May 6, ’21
Jan. 15, ’21
66
357
5
23
–9
–8
–7
–7
71
321
8
24
106.59
…
168.11
...
–0.13
…
0.73
...
n.a.
139
101
48
…
35.34
...
88.79
…
–4.10
...
0.58
40
157
n.a.
64
30.01
42.60
11.19
19.94
–26.80
–1.23
–1.84
–0.40
Maturity
Current
Last week
…And spreads that widened the most
Teva Pharmaceutical Finance
Mylan NV
Bnp Paribas S.A.
Canadian Imperial Bank of Commerce
TEVA
MYL
BNP
CM
6.150
Feb. 1, ’36
3.950 June 15, ’26
7.625 March 30, ’49
2.100
Oct. 5, ’20
387
174
106
46
19
18
18
Newell Brands*
General Motors
Pitney Bowes
General Electric
NWL
GM
PBI
GE
3.150
April 1, ’21
4.200
Oct. 1, ’27
3.625 Sept. 15, ’20
5.000 Jan. 21, ’49
58
164
265
84
15
14
13
12
76
High-yield issues with the biggest price increases…
Issuer
Symbol
Alliance One International
Murray Energy
Mattel
Resolute Forest Products
AOI
9.875
MURREN 11.250
MAT
5.450
RFP
5.875
PBF Holding
Seagate HDD Cayman
CF Industries
USG
PBFENE
STX
CF
USG
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
July 15, ’21
April 15, ’21
Nov. 1, ’41
May 15, ’23
92.500
57.500
91.945
102.875
7.000 Nov. 15, ’23
4.875
June 1, ’27
5.150 March 15, ’34
4.875
June 1, ’27
105.500
98.000
101.563
104.000
2.50
2.50
2.18
1.63
1.38
1.38
1.19
1.08
Last week
Stock Performance
Close ($)
% chg
88.750
58.938
n.a.
101.063
13.20
...
13.04
7.20
20.00
...
–3.76
23.08
n.a.
97.500
100.000
104.281
...
…
38.55
33.95
...
…
1.34
–1.45
97.625
110.640
72.750
n.a.
…
…
...
43.03
…
…
...
–35.16
97.563
76.750
83.750
83.500
299.26
9.18
...
…
–6.80
3.61
...
…
…And with the biggest price decreases
CHS Com Hlth Sys
Qwest
EP Energy
Treehouse Foods
CYH
CTL
EPENEG
THS
5.125
Aug. 1, ’21
6.750
Dec. 1, ’21
8.000 Feb. 15, ’25
4.875 March 15, ’22
Tesla
Frontier Communications
Valeant Pharmaceuticals International
Endo Dac
TSLA
FTR
VRXCN
ENDP
5.300
7.125
6.125
6.000
Aug. 15, ’25
Jan. 15, ’23
April 15, ’25
July 15, ’23
93.905 –3.10
–2.59
108.000
–2.50
72.000
–2.26
101.125
94.875
74.125
82.750
77.870
–1.88
–1.63
–1.50
–1.38
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
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.
Thursday, November 2, 2017
Net
Sym Close Chg
Stock
NYSE
ABB
ABB 26.09 -0.15
t AES
AES 10.79 0.22
Aflac
AFL 84.41 0.12
t AT&T
T
33.17 -0.38
AbbottLabs ABT 54.37 0.37
AbbVie
ABBV 91.02 -1.42
Accenture ACN 143.43 0.47
AcuityBrands AYI 161.23 -4.49
Adient
ADNT 81.08 -3.85
t AdvanceAuto AAP 81.69 0.94
AdvSemiEngg ASX 6.20 0.10
Aegon
AEG 6.00 0.05
s AerCap
AER 53.01 0.15
Aetna
AET 172.32 0.52
AffiliatedMgrs AMG 185.34 -0.77
AgilentTechs A
68.13 0.11
AgnicoEagle AEM 44.05 -0.21
Agrium
AGU 108.32 -1.19
AirProducts APD 159.41 -0.51
t AlaskaAir ALK 63.65 -2.13
s Albemarle ALB 136.91 -5.42
Alcoa
AA 47.46 -0.24
s AlexandriaRealEst ARE 124.56 -0.65
s Alibaba
BABA184.81 -1.27
Alleghany Y
567.00 2.43
Allegion
ALLE 82.23 -0.50
Allergan
AGN 175.38 -9.20
AllianceData ADS 226.24 0.04
AllianceBernstein AB 26.05 0.15
AlliantEnergy LNT 43.06 -0.01
AllisonTransm ALSN 44.08 0.32
s Allstate
ALL 97.85 3.60
s AllyFinancial ALLY 26.54 0.19
AlticeUSA ATUS 24.50 -0.44
Altria
MO 63.90 -0.80
AlumofChina ACH 19.65 0.32
Ambev
ABEV 6.28 -0.01
s Ameren
AEE 62.32 0.52
AmericaMovil AMX 17.21 0.10
AmericaMovil A AMOV 17.10 0.10
AmCampus ACC 41.73 -0.47
s AEP
AEP 73.72 -0.29
AmericanExpress AXP 95.98 0.19
AmericanFin AFG 103.00 1.19
AIG
AIG 64.98 0.32
AmerTowerREIT AMT 142.44 1.63
s AmerWaterWorks AWK 89.45 2.24
Amerigas APU 45.00 -0.35
Ameriprise AMP 160.56 3.18
AmerisourceBrgn ABC 73.23 -3.39
Ametek
AME 68.38 1.13
Amphenol APH 87.59 0.72
AnadarkoPetrol APC 49.39 -0.75
s Andeavor ANDV 109.73 0.52
AB InBev BUD 120.93 -1.21
AnnalyCap NLY 11.29 -0.23
AnteroResources AR 18.90 -0.78
Anthem
ANTM 210.59 1.06
Aon
AON138.96 -3.88
Apache
APA 41.68 -0.55
ApartmtInv AIV 43.60 -0.74
ApolloGlobalMgmt APO 30.64 -0.99
AquaAmerica WTR 35.93 0.50
Aramark
ARMK 43.50 0.24
ArcelorMittal MT 29.53 0.10
ArcherDaniels ADM 40.16 -0.46
Arconic
ARNC 25.24 0.18
AristaNetworks ANET 181.17-16.09
ArrowElec ARW 79.10 -3.05
AstraZeneca AZN 34.11 -0.45
Athene
ATH 47.58 -3.56
AtmosEnergy ATO 86.52 -0.45
Autohome ATHM 58.35 0.90
Autoliv
ALV 126.73 1.37
AutoZone AZO 602.70 17.82
Avalonbay AVB 180.35 -3.05
Avangrid
AGR 50.45 -0.82
s AveryDennison AVY 108.44 1.41
AxaltaCoating AXTA 32.77 -0.65
BB&T
BBT 49.59 0.04
BCE
BCE 47.14 0.89
Net
Sym Close Chg
Stock
BHPBilliton BHP 42.80 0.77
BHPBilliton BBL 37.86 0.72
BP
BP 40.67 -0.09
BRF
BRFS 13.27 -0.11
t BT Group
BT 16.76 -0.79
BWX Tech BWXT 61.35 0.99
BakerHughes BHGE 31.28 -0.57
Ball
BLL 41.80 -0.90
BancoBilbaoViz BBVA 8.71 0.02
BancodeChile BCH 92.61 1.31
BancoMacro BMA 119.73 -0.97
BcoSantChile BSAC 31.18 0.22
BancoSantander SAN 6.77
...
BanColombia CIB 37.52 -0.22
BankofAmerica BAC 27.87 0.34
BankofMontreal BMO 77.39 0.71
BankNY Mellon BK 51.40 -0.25
s BkNovaScotia BNS 65.33 0.74
Barclays
BCS 9.71 0.02
s Bard CR
BCR 335.57 8.79
BarrickGold ABX 14.10 -0.12
BaxterIntl BAX 64.07 -0.13
s BectonDickinson BDX 224.02 15.96
Berkley
WRB 69.18 0.64
BerkHathwy A BRK.A 2834343433.99
BerkHathwy B BRK.B 188.61 1.44
BerryGlobal BERY 58.52 -0.65
BestBuy
BBY 57.34 1.33
Bio-RadLab A BIO 216.94 -0.92
BlackKnight BKI 45.95 0.85
BlackBerry BB 10.71 -0.07
BlackRock BLK 474.92 5.63
BlackstoneGroup BX 32.51 -0.38
BoardwalkPipe BWP 14.16 -0.02
Boeing
BA 262.63 4.13
BorgWarner BWA 52.90 0.20
BostonProperties BXP 122.77 0.79
BostonScientific BSX 27.44 -0.41
Braskem
BAK 31.17 0.17
Bristol-Myers BMY 62.23 0.07
BritishAmTob BTI 64.71 -0.08
BroadridgeFinl BR 86.26 -0.16
BrookfieldMgt BAM 41.61 0.08
BrookfieldInfr BIP 42.22 -0.26
s Brown&Brown BRO 50.40 0.31
Brown-Forman A BF.A 56.24 0.07
Brown-Forman B BF.B 55.93 0.50
BuckeyePtrs BPL 52.70 -0.96
Bunge
BG 69.13 -0.43
BurlingtonStores BURL 98.12 2.77
CBD Pao
CBD 22.79 -0.15
CBRE Group CBG 39.21 -0.04
t CBS A
CBS.A 55.34 -1.59
t CBS B
CBS 54.46 -1.73
s CF Industries CF 38.55 0.51
CGI Group GIB 52.75 0.15
CIT Group CIT 46.33 0.05
CMS Energy CMS 48.12 0.38
CNA Fin
CNA 54.48 0.02
s CNOOC
CEO 141.04 4.93
CPFLEnergia CPL 16.77
...
CRH
CRH 36.56 -0.23
CVS Health CVS 69.38 0.38
s CabotOil
COG 28.26 0.35
CamdenProperty CPT 90.80 -0.62
CampbellSoup CPB 46.85 -0.68
CIBC
CM 88.79 0.51
CanNtlRlwy CNI 80.33 0.31
s CanNaturalRes CNQ 35.28 0.26
CanPacRlwy CP 175.21 1.88
Canon
CAJ 37.73 0.04
CapitalOne COF 92.45 0.55
t CardinalHealth CAH 61.07 -1.11
Carlisle
CSL 109.97 0.14
CarMax
KMX 75.98 1.52
Carnival
CCL 65.20 0.63
Carnival
CUK 65.60 0.61
Caterpillar CAT 136.47 0.18
Celanese A CE 106.77 1.41
Cemex
CX
8.08 0.12
CenovusEnergy CVE 10.41 0.32
Centene
CNC 95.81 -0.84
CenterPointEner CNP 29.74 0.03
CentraisElBras EBR 6.21 -0.08
CenturyLink CTL 17.46 -0.39
Stock
Chemours CC 55.83
Chevron
CVX 115.33
ChinaEastrnAir CEA 26.21
ChinaLifeIns LFC 17.60
ChinaMobile CHL 50.76
ChinaPetrol SNP 74.55
ChinaSoAirlines ZNH 39.47
ChinaTelecom CHA 50.59
ChinaUnicom CHU 14.83
Chipotle
CMG 279.46
Chubb
CB 149.26
ChunghwaTelecom CHT 33.79
Church&Dwight CHD 45.43
s Cigna
CI 198.39
CimarexEnergy XEC 120.87
Citigroup
C
74.74
CitizensFin CFG 38.74
Clorox
CLX 129.28
Coca-Cola KO 45.88
Coca-Cola Euro CCE 39.61
Coca-Cola Femsa KOF 67.48
Colgate-Palmolive CL 70.94
ColonyNorthStar CLNS 12.37
Comerica
CMA 79.44
SABESP
SBS 9.18
ConagraBrands CAG 33.86
ConchoRscs CXO 139.98
ConocoPhillips COP 52.48
s ConEd
ED 86.80
ConstBrands A STZ 214.32
ContinentalRscs CLR 41.14
Cooper
COO 226.90
Corning
GLW 31.58
t Coty
COTY 14.46
Credicorp
BAP 207.04
s CreditSuisse CS 16.38
CrestwoodEquity CEQP 25.00
CrownCastle CCI 106.37
CrownHoldings CCK 59.88
Cullen/Frost CFR 98.99
Cummins
CMI 173.29
DTE Energy DTE 110.80
DXC Tech DXC 90.69
s Danaher
DHR 92.71
Darden
DRI 81.81
DaVita
DVA 59.52
s Deere
DE 134.44
DellTechnologies DVMT 81.86
DelphiAutomotive DLPH 99.31
DeltaAir
DAL 50.34
DeutscheBank DB 17.06
DevonEnergy DVN 38.83
Diageo
DEO 134.99
DigitalRealty DLR 118.77
DiscoverFinSvcs DFS 66.93
Disney
DIS 98.35
DolbyLab
DLB 58.65
DollarGeneral DG 82.51
DominionEner D
80.84
Domino's
DPZ 178.09
Donaldson DCI 47.89
DouglasEmmett DEI 39.71
Dover
DOV 95.04
DowDuPont DWDP 72.04
DrPepperSnap DPS 85.34
DrReddy'sLab RDY 37.62
s DukeEnergy DUK 88.56
DukeRealty DRE 28.71
ENI
E
33.37
EOG Rscs EOG 102.95
EQT
EQT 62.03
EQT Midstream EQM 71.93
EastmanChem EMN 91.13
Eaton
ETN 79.38
EatonVance EV 51.04
Ecolab
ECL 131.24
s Ecopetrol
EC 11.27
EdisonInt
EIX 79.07
EdwardsLife EW 101.38
EmersonElectric EMR 63.62
EnbridgeEnPtrs EEP 14.77
t Enbridge
ENB 36.71
Encana
ECA 12.05
EnelAmericas ENIA 10.75
EnelChile
ENIC 5.80
Dividend Changes
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
Cantel Medical
CDW Corp.
Estee Lauder Cl A
Lincoln National
Macquarie Infrastructure
Natural Health Trends
Rockwell Automation
Schweitzer-Mauduit Intl
Shore Bancshares
Simulations Plus
Spectra Energy Partners
Westlake Chem Partners
CMD
CDW
EL
LNC
MIC
NHTC
ROK
SWM
SHBI
SLP
SEP
WLKP
0.2
1.2
1.3
1.7
8.4
2.5
1.7
3.8
1.7
1.5
6.7
6.7
APO
EFC
TCAP
5.1
10.7
12.4
.085 /.07 SA
.21 /.16 Q
.38 /.34 Q
.33 /.29 Q
1.42 /1.38 Q
.12 /.11 Q
.835 /.76 Q
.43 /.42 Q
.07 /.05 Q
.06 /.05 Q
.7263 /.71375 Q
.3756 /.365 Q
Jan31 /Jan17
Dec11 /Nov24
Dec15 /Nov30
Feb01 /Jan10
Nov16 /Nov13
Nov24 /Nov14
Dec11 /Nov13
Dec22 /Dec01
Nov30 /Nov15
Nov20 /Nov13
Nov29 /Nov13
Nov29 /Nov14
Reduced
Apollo Global Mgmt A
Ellington Financial
Triangle Capital
.39 /.52
.41 /.45
.30 /.45
Q
Q
Q
Nov30 /Nov21
Dec15 /Dec01
Dec20 /Dec06
Initial
Guggenheim BS 2025 HY
Guggenheim BulletShs 2027
XAI Octagon FR & Alt Incm
.1145
.0543
.069
BSJP
BSCR
XFLT
Nov07 /Nov03
Nov07 /Nov03
Dec01 /Nov15
Funds and investment companies
AllianzGI Conv & Inc 2024
AllianzGI Conv & Incm
AllianzGI Conv & Incm II
AllianzGI Div Incm
Avenue Incm Cr Strat Fd
BlackRck Rscs Comm Str Tr
BlackRock 2022 Glbl Incm
BlackRock CA Municipal Tr
Blackrock Core Bond Tr
BlackRock Corp Hi Yd Fd
BlackRock Enh Eq Div Tr
BlackRock Enh Gl Div Tr
BlackRock FR Incm Strat
BlackRock Income Trust
Blackrock Invest
BlackRock Long-Term Muni
BlackRock MA Tax-Exempt
BlackRock MD Muni
BlackRock Multi-Sector IT
BlackRock Mun
BlackRock Mun 2030 Target
BlackRock Mun Inco
BlackRock Muni
BlackRock Municipal Trust
BlackRock NJ Muni
BlackRock NJ Municipal Tr
BlackRock NY Municipal Tr
BlackRock Science & Tech
Blackrock Strategic Muni
BlackRock Taxable Mun Bd
BlackRock Utility & Infr
BlackRock VA Muni
BlackRockDurInco Tr
BlackRockFL Muni 2020
BlackRockMuni
BlackRockMuni 2020
BlackRockMuni Tr
BlackRockNY TrII
Blkrck MunHl NJ Qlty
BlkrckNYMuni Qlty
BlkRk Credit Alloc Incm
BlkRk Debt Strat Fd
BlkRk Engy Res Tr
BlkRk Enh Cap Inco
BlkRk Enhncd Govt Fd
Blkrk FltRt InTr
CBH
NCV
NCZ
ACV
ACP
BCX
BGIO
BFZ
BHK
HYT
BDJ
BOE
FRA
BKT
BKN
BTA
MHE
BZM
BIT
BAF
BTT
BBF
BBK
BFK
BLJ
BNJ
BNY
BST
BSD
BBN
BUI
BHV
BLW
BFO
BLE
BKK
BYM
BFY
MUJ
BSE
BTZ
DSU
BGR
CII
EGF
BGT
5.8
11.0
11.0
9.0
10.0
6.9
6.0
5.0
5.5
7.5
6.1
6.9
5.2
5.1
5.1
5.5
4.7
4.1
7.6
5.4
3.9
5.9
5.0
5.5
5.0
5.4
4.9
5.0
5.6
6.8
7.0
4.2
6.0
2.5
5.4
3.1
5.0
4.6
5.7
4.7
6.0
7.0
6.8
6.2
3.6
4.9
-1.14
-0.57
-0.21
-0.02
-0.01
0.74
0.60
0.31
0.29
9.26
-2.05
0.02
-0.75
0.55
-0.34
0.71
0.37
1.26
0.08
-0.79
-0.02
0.38
0.03
0.99
-0.09
-0.27
-0.28
0.38
1.00
-1.68
-0.60
-7.07
-0.05
-0.85
-1.56
0.77
-0.20
1.23
-0.69
0.25
0.46
0.52
-0.81
-0.20
-0.27
-0.31
0.17
-0.54
-0.07
-0.01
0.50
-0.25
0.56
1.83
0.03
-0.68
0.30
1.28
0.35
0.84
0.28
-0.18
0.50
-1.28
-0.55
1.95
0.70
...
0.38
0.66
-0.03
-1.19
0.15
-1.53
0.37
-0.03
-0.12
-0.01
-0.44
-0.45
-0.64
-1.61
-0.08
0.11
0.17
EnelGenChile EOCC 26.06 0.60
EnergyTrfrEquity ETE 17.51 -0.41
EnergyTransfer ETP 17.46 -0.20
Entergy
ETR 86.64 0.97
EnterpriseProd EPD 24.55 -0.47
Equifax
EFX 108.92 -0.88
EquityLife ELS 89.10 0.15
EquityResdntl EQR 66.85 -0.96
EssexProp ESS 253.84 -8.69
EsteeLauder EL 120.15 -1.97
EverestRe RE 227.44 -7.35
EversourceEner ES 63.23 0.55
s Exelon
EXC 40.72 0.57
s ExtraSpaceSt EXR 83.12 1.52
ExxonMobil XOM 83.53 -0.34
FMC
FMC 90.15 -1.75
FactSet
FDS 189.98 4.59
FederalRealty FRT 128.10 6.40
FedEx
FDX 225.30 -0.16
Ferrari
RACE117.11 -2.89
FiatChrysler FCAU 17.86 0.28
FibriaCelulose FBR 16.19 0.07
s FidelityNatlFin FNF 37.74 -0.04
FNFV Group FNFV 17.85 0.35
FidelityNtlInfo FIS 93.36 0.25
58.com
WUBA 67.37 -0.10
FirstAmerFin FAF 54.25 -0.26
FirstData
FDC 17.06 -0.28
FirstRepBank FRC 93.89 -2.97
FirstEnergy FE 32.60 0.04
s FleetCorTech FLT 182.31 18.00
Flowserve FLS 39.14 -4.85
Fluor
FLR 44.46 0.52
FomentoEconMex FMX 86.09 -0.85
FordMotor F
12.42 0.07
ForestCIty A FCE.A 24.90 -0.06
Fortis
FTS 36.57 -0.12
Fortive
FTV 73.31 0.45
FortBrandsHome FBHS 64.56 -0.64
Franco-Nevada FNV 80.30 0.48
FranklinRscs BEN 43.03 0.62
Freeport-McMoRan FCX 14.23 -0.15
FreseniusMed FMS 47.84 -0.65
GGP
GGP 19.67 0.23
s Gallagher AJG 63.88 0.28
Gap
GPS 26.45 0.47
GardnerDenver GDI 29.31 0.37
Gartner
IT 120.34 -5.26
Gazit-Globe GZT 9.48 0.02
GeneralDynamics GD 203.82 2.20
t GeneralElec GE 19.94 -0.08
GeneralMills GIS 51.76 -0.27
GeneralMotors GM 42.60 -0.53
Genpact
G
30.27 0.05
GenuineParts GPC 88.53 1.10
Gildan
GIL 29.19 -0.11
t GlaxoSmithKline GSK 35.95 -0.25
GlobalPayments GPN 102.81 0.26
GoDaddy
GDDY 46.72 -0.11
Goldcorp
GG 13.06 -0.11
GoldmanSachs GS 246.88 2.62
Graco
GGG 131.06 0.57
Grainger
GWW 199.03 3.45
GreatPlainsEner GXP 32.82 0.33
GpoAvalAcciones AVAL 8.42 -0.01
GpFinSantandMex BSMX 8.28 0.03
GrupoTelevisa TV 21.11 -0.51
GuidewireSoftware GWRE 80.41 2.48
HCA Healthcare HCA 76.43 -0.40
HCP
HCP 26.95 0.93
HDFC Bank HDB 94.96 1.66
HP
HPQ 21.44 -0.03
HSBC
HSBC 48.35 -0.33
Halliburton HAL 42.69 -0.36
Hanesbrands HBI 20.08 -1.93
HarleyDavidson HOG 48.32 0.52
Harris
HRS 137.10 -0.05
HartfordFinl HIG 55.71 0.46
HealthcareAmer HTA 29.87 0.10
Heico
HEI 91.19 1.30
Heico A
HEI.A 76.60 1.30
Helmerich&Payne HP 54.88 0.29
Herbalife
HLF 70.47 -0.37
Hershey
HSY 106.59 -0.14
Hess
HES 44.41 0.11
HewlettPackard HPE 13.63 0.03
s Hilton
HLT 72.44
...
s HollyFrontier HFC 40.25 0.60
HomeDepot HD 162.71 -2.67
s HondaMotor HMC 32.80 0.93
Honeywell HON 145.41 0.48
HormelFoods HRL 31.51 0.30
DR Horton DHI 44.63 -0.10
HostHotels HST 19.46 -0.27
HuanengPower HNP 26.53 0.14
Hubbell
HUBB 126.19 0.03
Humana
HUM 256.35 0.87
HuntingtonIngalls HII 234.57 0.91
Huntsman HUN 31.66 -0.17
s HyattHotels H
66.71 3.89
ICICI Bank IBN 9.63 0.12
ING Groep ING 18.50 -0.02
Invesco
IVZ 36.16 0.40
IDEX
IEX 128.48 0.45
IllinoisToolWks ITW 156.98 1.86
Infosys
INFY 14.59 -0.06
Ingersoll-Rand IR
87.60 0.07
Company
Dividend announcements from November 2.
Company
Net
Sym Close Chg
.046
.065
.0575
.167
.12
.0516
.05
.0595
.065
.07
.0467
.078
.061
.0265
.062
.0545
.053
.0474
.1167
.0685
.0718
.07238
.0635
.065
.0615
.0696
.06
.11
.065
.1318
.121
.063
.0795
.031
.065
.0395
.06
.061
.0675
.052
.067
.0685
.0776
.0828
.041
.0583
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Dec01 /Nov13
Dec01 /Nov13
Dec01 /Nov13
Dec01 /Nov13
Nov30 /Nov13
Nov30 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Symbol
BlkRk Health Sci
BlkRk Intl Grwth&Inco
BlkRk Muni Inter Dur
BlkRk Muni NY Inter Dur
BlkRk MuniAssets Fd
BlkRk Munienhanced
BlkRk MuniHldgs
BlkRk MuniHldgs CA Qlty
BlkRk MuniHldgs II
BlkRk MuniHldgs Inv
BlkRk MuniHldgs Qlty II
BlkRk MuniHldgs Quality
BlkRk MuniVest
BlkRk MuniVest II
BlkRk MuniYield
BlkRk MuniYld Arizona
BlkRk MuniYld CA Fd
BlkRk MuniYld CA Quality
BlkRk MuniYld Ins Qlty
BlkRk MuniYld Inv
BlkRk MuniYld MI Qlty
BlkRk MuniYld NJ Fd
BlkRk MuniYld PA Quality
BlkRk MuniYld Qlty II
BlkRk MuniYld Quality
BlkRk NY Muni
BlRk MuHldg NY Qlty
BlRk Muyld NY Qlty
BlRkMunyldQltyIII
BulletShares 2017 CB
CS X-Links Multi-Asset Hi
Cushing Energy Incm Fd
Cushing Renaissance Fund
CushingMLPTotalReturnFd
DoubleLine Incm Solutions
Doubleline Oppor Credit
Duff & Phelps Sel Energy
Eatn Vnc MI Muni
Eatn Vnc NJ Muni
Eatn Vnc NY Muni
Eatn Vnc OH Muni
Eatn Vnc PA Muni
Eaton CA Trust
Eaton MA Trust
Eaton MI Trust
Eaton NJ
Eaton NY Trust
Eaton OH Trsut
Eaton PA Trust
Eaton Vance BuyWrite Opp
Eaton Vance CA Mun Bd
Eaton Vance Eqty Inco Fd
Eaton Vance Eqty Inco II
Eaton Vance FR 2022
Eaton Vance FR Incm Plus
Eaton Vance FR Incm Tr
Eaton Vance Hi Incm 2021
Eaton Vance Mun Bd Fd
Eaton Vance Mun Bd Fd II
Eaton Vance Mun Incm 2028
Eaton Vance Mun Income
Eaton Vance Sr Incm Tr
Eaton Vance Tax-Mng Div
Eaton Vance Tax-Mngd Opp
Eaton Vnce NY
Eaton Vnce CA2
Eaton Vnce Ins MA
EatonVance TxAdv Opport
EatonVnc SrFltRate
Etn Vnc Short Dur Fd
Etn Vnc Tax Mgd Buy-Write
EtnVnc TaxAdvDiv
EtnVncLtdFd
EtnVncRskMngd
EtnVncTxAdvGblDiv
New Highs and Lows | WSJ.com/newhighs
Stock
52-Wk %
52-Wk %
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg
52-Wk % Stock
Sym Hi/Lo Chg FT DevMktsXUS FDTS
42.81 1.0 HaymakerAcqnUn HYACU 10.08 0.3
218.05
121.06
17.70
3.00
22.80
7.77
23.44
25.41
7.89
94.80
68.90
21.98
491.80
57.00
29.39
61.27
0.6
7.4
2.1
-11.9
2.5
4.7
0.3
-0.2
28.2
1.6
1.9
29.1
4.6
0.1
1.0
0.5
FTEurozoneAlpha FEUZ
FT GerAlpha
FGM
FT GlbNatRscs FTRI
FT JapanAlpha FJP
FT NasdGlblAuto CARZ
FlexShUSQualLC QLC
ForresterResearch FORR
FoundationMed FMI
GilatSatellite
GILT
GlacierBancorp GBCI
GladstoneInvt
GAIN
GlbPartnerAcqnWt GPACW
GoldenEnt
GDEN
GrandCanyonEduc LOPE
HMN Fin
HMNF
HailiangEduc
HLG
Hardinge
HDNG
43.72 0.2 HorizDAXGermany
49.42 0.2 IAC/InterActive
12.21 0.2 ILG
58.44 0.3 Immucell
42.13 -0.1 Intel
32.09 0.3 InteractiveBrkrs
45.70 1.6 IntuitiveSurgical
50.45 19.5 iShGlbCleanEnergy
7.50 0.5 iShGlbTimber
38.49 1.4 JackHenry
10.61 1.9 JunoTherap
1.05 19.2 KLX
28.66 6.7 KellyServices B
95.51 3.7 LGI Homes
19.10 3.8 LakelandFin
28.96 8.2 Lantheus
17.41 4.1 LimelightNetworks
BME
BGY
MUI
MNE
MUA
MEN
MHD
MUC
MUH
MFL
MUE
MUS
MVF
MVT
MYD
MZA
MYC
MCA
MFT
MYF
MIY
MYJ
MPA
MQT
MQY
BQH
MHN
MYN
MYI
BSCH
MLTI
SRF
SZC
SRV
DSL
DBL
DSE
MIW
EMJ
NYH
EIO
EIP
CEV
MMV
EMI
EVJ
EVY
EVO
EVP
ETV
EVM
EOI
EOS
EFL
EFF
EFT
EHT
EIM
EIV
ETX
EVN
EVF
ETY
ETW
ENX
EIA
MAB
ETO
EFR
EVG
ETB
EVT
EVV
ETJ
ETG
Stock
Continued From Page B6
ChurchillDowns CHDN
Cimpress
CMPR
CliftonBancorp CSBK
CounterPath
CPAH
Cresud
CRESY
CumberlandPharm CPIX
DavisFinl
DFNL
DavisWorldwide DWLD
DicernaPharma DRNA
DollarTree
DLTR
Ebix
EBIX
ElectroScientific ESIO
Equinix
EQIX
FS Bancorp
FSBW
FifthThirdBncp FITB
FT DevMkts
FDT
Net
Sym Close Chg
Stock
DAX
IAC
ILG
ICCC
INTC
IBKR
ISRG
ICLN
WOOD
JKHY
JUNO
KLXI
KELYB
LGIH
LKFN
LNTH
LLNW
31.91
131.11
30.15
8.49
47.23
55.66
384.20
9.38
70.69
111.60
60.00
56.69
28.00
61.66
50.00
22.75
5.42
0.5
0.9
1.4
4.6
0.8
2.1
1.0
0.3
0.3
1.1
24.0
1.7
21.7
-2.2
1.9
20.9
-1.5
Net
Sym Close Chg
Stock
Ingredion
INGR 129.28 1.49
ICE
ICE 68.67 2.45
InterContinentl IHG 56.27 0.14
IBM
IBM 153.35 -0.68
IntlFlavors IFF 148.20 -0.12
IntlPaper
IP
57.50 -0.22
t Interpublic IPG 18.93 -0.52
InvitationHomes INVH 23.21 0.56
IronMountain IRM 39.89 0.08
IsraelChemicals ICL
4.24 0.06
ItauUnibanco ITUB 12.68 0.03
JPMorganChase JPM 101.59 0.67
JacobsEngineering JEC 58.74 0.45
JamesHardie JHX 15.07 -0.05
JanusHenderson JHG 34.93 0.40
J&J
JNJ 139.93 -0.05
JohnsonControls JCI 40.65 -0.55
JonesLangLaSalle JLL 129.11 -1.69
JuniperNetworks JNPR 24.40 -0.46
KAR Auction KAR 48.35 0.95
KB Fin
KB 53.38 0.43
KKR
KKR 19.90 -0.01
KT
KT 14.06 -0.07
KSCitySouthern KSU 105.75 0.29
Kellogg
K
62.38 -0.63
KeyCorp
KEY 18.44 0.16
KeysightTechs KEYS 44.36 -0.21
KilroyRealty KRC 72.12 0.43
KimberlyClark KMB 111.55 -0.50
KimcoRealty KIM 18.96 0.41
t KinderMorgan KMI 17.80 -0.33
Knight-Swift KNX 41.47 0.38
Kohl's
KSS 42.24 0.34
KoninklijkePhil PHG 41.12 -0.12
KoreaElcPwr KEP 17.36 -0.03
Kroger
KR 21.18 0.28
s Kyocera
KYO 69.73 0.34
LATAMAirlines LTM 13.52 0.08
L Brands
LB 47.10 3.49
LG Display LPL 13.19 0.06
LINE
LN 41.90 -0.18
L3 Tech
LLL 187.56 2.01
LabCpAm LH 151.81 0.50
LambWeston LW 51.80 0.64
LasVegasSands LVS 64.90 0.53
Lazard
LAZ 46.87 -0.53
Lear
LEA 176.83 -0.32
Leggett&Platt LEG 46.11 -0.39
s Leidos
LDOS 62.82 -0.01
Lennar A
LEN 55.10 -1.86
Lennar B
LEN.B 46.74 -2.36
LennoxIntl LII 189.83 -0.04
LeucadiaNatl LUK 25.45 0.12
s LibertyProperty LPT 43.79 0.37
EliLilly
LLY 83.13 0.24
s LincolnNational LNC 76.72 1.16
LionsGate A LGF.A 28.49 -0.76
LionsGate B LGF.B 27.34 -0.50
LiveNationEnt LYV 40.92 -1.55
LloydsBanking LYG 3.63 -0.07
LockheedMartin LMT 310.86 4.26
s Loews
L
49.50 -0.04
Lowe's
LOW 76.65 -3.27
LyondellBasell LYB 103.54 0.11
M&T Bank MTB 169.03 1.75
MGM Resorts MGM 30.71 -0.11
MPLX
MPLX 34.84 -0.44
s MSCI
MSCI 125.42 7.83
Macerich
MAC 55.65 0.68
t MacquarieInfr MIC 67.56 -2.51
Macy's
M
18.78 -0.17
MagellanMid MMP 66.86 -1.41
MagnaIntl MGA 55.23 0.10
s Manpower MAN 125.43 1.59
ManulifeFin MFC 20.70 0.28
MarathonOil MRO 15.44 0.57
s MarathonPetrol MPC 62.17 1.28
Markel
MKL 1090.39 10.32
Marsh&McLennan MMC 83.66 1.24
MartinMarietta MLM208.96 -8.34
Masco
MAS 38.89 -0.48
Mastercard MA 148.25 -0.64
McCormick MKC 98.05 -1.80
McCormickVtg MKC.V 97.51 -2.54
s McDonalds MCD 168.10 1.73
McKesson MCK 137.06 -2.61
Medtronic MDT 77.87 -2.44
Merck
MRK 55.37 0.03
s MetLife
MET 55.73 1.86
MettlerToledo MTD 671.60-17.51
MichaelKors KORS 47.93 -0.55
MicroFocus MFGP 34.86 -0.52
MidAmApt MAA 102.17 -0.94
MitsubishiUFJ MTU 6.84 0.04
MizuhoFin MFG 3.68
...
MobileTeleSys MBT 10.82 -0.22
MohawkIndustries MHK 257.79 -4.66
MolsonCoors B TAP 79.08 -1.96
Monsanto MON 120.43 -0.71
Moody's
MCO 143.53 0.04
MorganStanley MS 50.42 0.79
Mosaic
MOS 22.47 -0.17
MotorolaSolutions MSI 90.02 -0.54
s NRG Energy NRG 25.97 1.13
NTTDoCoMo DCM 24.22 -0.06
NVR
NVR 3199.93-62.36
NationalGrid NGG 60.78 0.23
Amount
Yld % New/Old Frq
6.7
6.9
4.2
3.9
4.6
5.7
5.4
5.0
5.4
5.7
5.6
5.7
5.7
5.7
5.6
4.9
4.9
4.7
5.7
6.1
5.5
5.6
5.3
5.0
5.7
4.8
5.1
5.0
5.8
1.0
3.2
5.6
8.9
9.9
8.6
8.7
15.3
4.3
4.7
4.5
4.4
4.6
3.6
3.5
3.6
4.6
4.6
4.0
4.2
8.8
4.9
7.3
7.0
4.8
5.5
5.8
5.9
5.0
4.7
4.2
5.2
5.7
8.7
9.2
4.9
4.5
3.9
8.7
6.0
6.5
7.8
7.7
6.9
10.0
7.1
.20
.038
.0495
.0445
.0575
.0565
.0745
.0615
.0675
.0715
.064
.0635
.046
.073
.067
.062
.062
.0585
.067
.078
.064
.075
.0623
.054
.0725
.059
.058
.054
.068
.0181
.0755
.04
.1367
.0903
.15
.167
.22
.0475
.0491
.0439
.0469
.0486
.0371
.0388
.0391
.0457
.05
.0451
.0421
.1108
.0487
.0864
.0875
.0396
.075
.07
.05
.0521
.048
.0709
.0541
.031
.0843
.091
.0515
.0442
.0434
.18
.072
.0765
.108
.145
.0806
.076
.1025
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Q
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Payable /
Record
Nov30 /Nov15
Nov30 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Nov07 /Nov03
Nov21 /Nov13
Nov30 /Nov16
Nov30 /Nov16
Nov30 /Nov16
Nov30 /Nov16
Nov30 /Nov16
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov20 /Nov13
Nov20 /Nov13
Nov20 /Nov13
Nov20 /Nov13
Nov20 /Nov13
Nov20 /Nov13
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov20 /Nov13
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov30 /Nov22
Nov20 /Nov13
Nov30 /Nov22
Nov30 /Nov22
52-Wk %
Sym Hi/Lo Chg Stock
78.36 6.7 PaymentDataSys
LivaNova
LIVN
70.75 11.2 PinnacleEnt
MGPIngredients MGPI
51.56 11.1 PwrShDynFinl
ManTechIntl
MANT
121.25 -0.4 QAD B
Marriott
MAR
27.64 2.9 QAD A
MatchGroup
MTCH
15.00 5.3 Qualys
MercerIntl
MERC
18.50 3.3 Radware
MerchantsBancorp MBIN
45.80 -1.1 ScientificGames
MonarchCasino MCRI
84.61 2.2 SelectiveIns
NICE
NICE
17.08 14.6 Sigmatron
NMI Holdings
NMIH
88.38 2.5 SilvercrestAsset
NVE
NVEC
74.96 19.4 SinovacBiotech
Neurocrine
NBIX
15.28 1.0 SunHydraulics
NewaterTech
NEWA
52.35 11.9 TechTarget
Novanta
NOVT
23.78 0.8 TillCapital
NuvNasd100Dyn QQQX
Orbotech
49.23 5.6 TransActTechs
ORBK
0.58 7.0 US GlobalInv
OrigoAcqnRt
OACQR
47.45 2.2 UniversalForest
OtterTail
OTTR
19.25 2.7 UroGenPharma
PCSB Fin
PCSB
67.12 1.0 UTStarcom
PTC
PTC
47.80 3.0 ViperEnergyPtrs
Park-Ohio
PKOH
Stock
Net
Sym Close Chg
NatlOilwell NOV 33.36 -0.70
NatlRetailProp NNN 41.13 0.89
NewOrientalEduc EDU 81.67 -0.79
NY CmntyBcp NYCB 12.60 0.11
t NewellBrands NWL 30.01-10.99
NewfieldExpln NFX 29.49 -1.41
NewmontMining NEM 36.48 0.79
NextEraEnergy NEE 149.86 -3.52
t NielsenHoldings NLSN 36.81 0.65
Nike
NKE 55.12 0.05
NiSource
NI
26.94 0.36
NobleEnergy NBL 27.85 -0.70
Nokia
NOK 5.03 0.09
NomuraHoldings NMR 5.71 -0.05
t Nordstrom JWN 39.35 -0.59
NorfolkSouthern NSC 132.15 0.92
NorthropGrumman NOC 301.36 7.19
Novartis
NVS 82.78 0.01
NovoNordisk NVO 49.64 -0.05
Nucor
NUE 58.45 -0.35
t NuSTAREnergy NS 32.08 -1.27
OGE Energy OGE 36.06 -0.54
ONEOK
OKE 53.35 -1.18
OccidentalPetrol OXY 67.90 2.44
Och-Ziff
OZM 3.50 -0.31
Olin
OLN 35.78 -0.42
t Omnicom OMC 66.19 -1.44
Oracle
ORCL 50.28 -0.36
Orange
ORAN 16.61 0.14
OrbitalATK OA 132.70 -0.07
s Orix
IX
89.37 1.28
Oshkosh
OSK 87.03 -0.63
s OwensCorning OC 81.50 -0.79
PG&E
PCG 56.65 -0.59
PLDT
PHI 33.25 0.19
PNC Fin
PNC 138.40 1.46
POSCO
PKX 73.00 -0.04
PPG Ind
PPG 116.16 0.24
PPL
PPL 36.90 -0.04
PVH
PVH 127.56 -0.35
PackagingCpAm PKG 116.21 -0.36
PaloAltoNtwks PANW 143.23 -0.76
ParkHotels PK 29.05 0.12
s ParkerHannifin PH 187.12 5.13
ParsleyEnergy PE 26.73 -0.36
Pearson
PSO 9.08 -0.17
PembinaPipeline PBA 33.55 -0.11
Pentair
PNR 69.93 0.67
PepsiCo
PEP 110.05 -0.08
PerkinElmer PKI 72.07 -0.20
Perrigo
PRGO 81.27 -1.28
PetroChina PTR 68.82 2.78
PetroleoBrasil PBR 10.80 -0.03
PetroleoBrasilA PBR.A 10.36
...
Pfizer
PFE 35.46 0.20
PhilipMorris PM 102.80 -0.95
Phillips66 PSX 93.46 1.16
PinnacleFoods PF 54.10 -0.52
PinnacleWest PNW 87.92 0.46
PioneerNatRscs PXD 147.80 -6.17
PlainsAllAmPipe PAA 20.21 -0.39
PlainsGP
PAGP 20.25 -0.47
PolarisIndustries PII 118.40 -0.24
Potash
POT 19.42 -0.21
Praxair
PX 147.90 -0.02
s PrincipalFin PFG 68.89 1.76
Procter&Gamble PG 86.51 -0.38
s Progressive PGR 49.31 0.51
s Prologis
PLD 65.94 0.94
PrudentialFin PRU 112.94 2.36
Prudential PUK 48.90 -0.05
PublicServiceEnt PEG 49.79 0.28
PublicStorage PSA 208.33 1.81
PulteGroup PHM 30.09 -0.32
QuantaServices PWR 36.56 -0.78
Qudian
QD 25.27 -1.78
QuestDiag DGX 93.75 0.65
QuintilesIMS Q
107.30 -1.13
RELX
RENX 22.13 -0.20
RELX
RELX 22.88 -0.19
RPM
RPM 52.68 -0.18
RalphLauren RL 91.73 2.28
RaymondJames RJF 86.02 2.21
Raytheon RTN 184.02 3.76
RealtyIncome O
54.92 0.99
RedHat
RHT 120.99 -0.27
RegencyCtrs REG 65.28 3.16
RegionsFin RF 15.71 0.15
ReinsuranceGrp RGA 149.07 -1.43
RelianceSteel RS 78.50 0.75
RepublicServices RSG 64.80 0.25
ResMed
RMD 82.86 -2.91
RestaurantBrands QSR 65.51 0.85
RiceEnergy RICE 28.27 0.06
RioTinto
RIO 49.48 0.45
RobertHalf RHI 51.85 0.30
Rockwell
ROK 199.22 4.06
s RockwellCollins COL 136.02 0.17
RogersComm B RCI 51.65 -0.03
Rollins
ROL 44.70 1.00
RoperTech ROP 256.68 -1.53
RoyalBkCanada RY 79.10 0.79
RoyalBkScotland RBS 7.47 -0.14
RoyalCaribbean RCL 123.09 2.23
s RoyalDutchA RDS.A 64.22 1.18
s RoyalDutchB RDS.B 66.03 0.83
SAP
SAP 115.52 -0.75
Company
52-Wk %
Sym Hi/Lo Chg Stock
PYDS
PNK
PFI
QADB
QADA
QLYS
RDWR
SGMS
SIGI
SGMA
SAMG
SVA
SNHY
TTGT
TIL
TACT
GROW
UFPI
URGN
UTSI
VNOM
4.10
26.74
34.27
31.40
38.80
57.40
19.31
49.70
60.50
9.88
16.80
7.32
58.94
12.60
5.11
12.05
3.32
114.28
33.98
3.22
20.24
S&P Global SPGI 155.50 -1.06
SINOPECShanghai SHI 59.42 -1.69
SK Telecom SKM 26.23 0.11
SLGreenRealty SLG 95.19
...
Salesforce.com CRM 102.60 0.65
Sanofi
SNY 46.22 -0.26
s SantanderConUSA SC 16.94 0.12
Sasol
SSL 29.66 -0.15
t Scana
SCG 42.01 -0.62
Schlumberger SLB 63.25 -1.03
SchwabC
SCHW 45.06 0.82
ScottsMiracleGro SMG 99.84 -0.26
SealedAir SEE 43.89 -0.07
SemicondctrMfg SMI 7.96 -0.27
SempraEnergy SRE 117.81 1.18
SensataTech ST 48.09 -0.16
ServiceCorp SCI 35.24 0.18
ServiceMaster SERV 46.99 -0.17
ServiceNow NOW 124.34 -0.17
ShawComm B SJR 23.14 0.21
SherwinWilliams SHW 392.11 -3.66
ShinhanFin SHG 45.42 0.18
Shopify
SHOP 99.89 3.69
SimonProperty SPG 159.36 2.27
SmithAO
AOS 60.08 0.16
Smith&Nephew SNN 36.42 -0.49
Smucker
SJM 103.13 -2.09
Snap
SNAP 14.55 0.04
SnapOn
SNA 158.50 0.14
SOQUIMICH SQM 58.05 -3.23
Sony
SNE 44.89 1.35
s Southern
SO 53.25 1.17
SoCopper SCCO 42.94 -0.06
SouthwestAirlines LUV 53.99
...
SpectraEnerPtrs SEP 43.29 -0.38
t SpectrumBrands SPB 102.30 -7.54
s SpiritAeroSys SPR 82.62 3.41
Sprint
S
6.43 -0.03
Square
SQ 36.07 -0.40
StanleyBlackDck SWK 161.81 0.77
StarwoodProp STWD 21.67 0.04
StateStreet STT 92.51 0.26
Statoil
STO 20.34 -0.08
Steris
STE 87.72 -1.53
STMicroelec STM 23.97 0.19
Stryker
SYK 155.02 0.59
SumitomoMits SMFG 8.11 0.04
s SunCommunities SUI 91.23 0.12
SunLifeFinancial SLF 39.18 0.21
SuncorEnergy SU 34.86 0.45
SunTrustBanks STI 60.64 0.11
SynchronyFin SYF 33.22 0.39
Syngenta SYT 92.30 -0.04
Sysco
SYY 55.84 0.28
TAL Education TAL 27.40 0.36
TE Connectivity TEL 91.57 -0.30
Telus
TU 36.34 -0.07
Ternium
TX 29.84 -0.09
TIM Part
TSU 18.38 0.02
TJX
TJX 70.21 0.49
s TableauSoftware DATA 82.17 1.41
TaiwanSemi TSM 42.15 0.05
Tapestry
TPR 41.35 0.67
TargaResources TRGP 42.82 0.81
Target
TGT 59.79 0.93
TataMotors TTM 33.21 0.22
TechnipFMC FTI 28.25 0.49
TeckRscsB TECK 20.98 -0.12
s TelecomArgentina TEO 34.11 0.34
TelecomItalia TI
8.95 0.26
TelecomItalia A TI.A 7.30 0.14
s TeledyneTech TDY 178.09 8.23
s Teleflex
TFX 254.80 13.09
TelefonicaBras VIV 15.34 -0.07
Telefonica TEF 10.47 0.01
TelekmIndonesia TLK 29.89 0.47
Tenaris
TS 30.58 3.21
Teradyne
TER 42.55 0.01
t TevaPharm TEVA 11.23 -2.79
Textron
TXT 54.28 0.88
ThermoFisherSci TMO 191.28 -2.91
ThomsonReuters TRI 44.46 0.23
ThorIndustries THO 136.72 -0.10
3M
MMM 232.23 2.05
Tiffany
TIF 93.01 -0.97
TimeWarner TWX 94.70 -3.69
Toll Bros
TOL 43.79 -2.84
Torchmark TMK 85.54 0.78
Toro
TTC 62.76 -0.38
TorontoDomBk TD 57.32 0.45
s Total
TOT 56.57 0.35
TotalSystem TSS 72.17 0.03
s ToyotaMotor TM 125.31 0.88
TransCanada TRP 47.84 -0.14
TransDigm TDG 282.55 1.60
TransUnion TRU 53.44 -0.04
s Travelers
TRV 134.69 1.22
TurkcellIletism TKC 9.45 -0.32
TurquoiseHill TRQ 3.05 -0.04
Twitter
TWTR 19.71 -0.90
TylerTech TYL 174.64 -1.08
TysonFoods TSN 73.15 -0.16
UBS Group UBS 17.26 0.36
UDR
UDR 38.13 -0.97
UGI
UGI 47.56 -0.30
US Foods USFD 27.59 0.10
UltraparPart UGP 23.58 0.10
Unilever
UN 57.14
...
Symbol
EtnVncTxMngGlDvEqInc
EV National Municipal Opp
Genl American Investors
Genl American Investors
Guggenheim BS 2017 HY
Guggenheim BS 2018 HY
Guggenheim BS 2019 HY
Guggenheim BS 2020 HY
Guggenheim BS 2021 HY
Guggenheim BS 2022 HY
Guggenheim BS 2023 HY
Guggenheim BS 2024 HY
Guggenheim BulletShr 2018
Guggenheim BulletShr 2019
Guggenheim BulletShs 2020
Guggenheim Bulletshs 2021
Guggenheim BulletShs 2022
Guggenheim BulletShs 2023
Guggenheim BulletShs 2024
Guggenheim BulletShs 2025
Guggenheim BulletShs 2026
Guggenheim TR Bd
Guggenheim Ultra Shrt Dur
HnckJohn TxAdv
Invesco Adv Mun Incm II
Invesco Bond Fund
Invesco CA Value Mun Incm
Invesco Credit Opps Fund
Invesco High Incm 2023
Invesco High Income Tr II
Invesco Inv Grade Muni
Invesco Inv Grade NY Muni
Invesco Mun Incm Opps Tr
Invesco Mun Opportunity
Invesco Municipal Trust
Invesco PA Value Mun Incm
Invesco Qlty Mun Inco
Invesco Senior Income Tr
Invesco Value Mun Incm Tr
iSh Conservative Allocat
iSh Int Rate Hdgd Corp Bd
iSh Int Rate Hi Yield Bd
iSh Interest Rate Hdg 10+
iSh Interest Rate Hdg EM
iSh Yield Optimized Bd
iShrs Mrnngstr Multi Asst
Ivy High Income Opps Fund
JHancock Pr Div
John Hancock Pfd II
John Hancock Pfd Inc III
John Hancock Pfd Income
Mangd Durtn InvGr Mun Fd
MFS California Muni Fund
MFS Charter
MFS Govt Mkts Income Tr
MFS Hi Inc Muni
MFS Hi Yld Muni
MFS Inc Tr
MFS Intermed Hi Inc
MFS Invest Grade Muni
MFS Multimkt
MFS Munl Inco
MFS Special Value
NewAmFd
Nuv Float Rte Opp Fd
Nuv Inter Duration Qlty
Nuveen AMT-Free Mun
Nuveen AMT-Free Mun Value
Nuveen AMT-Free Quality
Nuveen AZ Quality Muni
Nuveen Build Am Bd Fd
Nuveen Build Am Bd Opp Fd
Nuveen CA AMT-Free Qual
Nuveen CA Mun Value Fd 2
Nuveen CA Muni Value
40.2
1.0
0.5
2.1
2.8
2.7
...
1.4
1.4
1.6
3.4
0.1
2.2
0.9
9.1
19.4
25.3
...
5.3
0.6
-0.9
Net
Sym Close Chg
Stock
EXG
EOT
GAM
GAM
BSJH
BSJI
BSJJ
BSJK
BSJL
BSJM
BSJN
BSJO
BSCI
BSCJ
BSCK
BSCL
BSCM
BSCN
BSCO
BSCP
BSCQ
GTO
GSY
HTD
VKI
VBF
VCV
VTA
IHIT
VLT
VGM
VTN
OIA
VMO
VKQ
VPV
IQI
VVR
IIM
AOK
LQDH
HYGH
CLYH
EMBH
BYLD
IYLD
IVH
PDT
HPF
HPS
HPI
MZF
CCA
MCR
MGF
CXE
CMU
MIN
CIF
CXH
MMT
MFM
MFV
HYB
JRO
NIQ
NVG
NUW
NEA
NAZ
NBB
NBD
NKX
NCB
NCA
Unilever
UL 55.71 -0.05
UnionPacific UNP 118.39 1.39
UnitedContinental UAL 58.27 -0.37
UnitedMicro UMC 2.56 -0.02
UPS B
UPS 116.87 -0.59
UnitedRentals URI 145.58 1.91
US Bancorp USB 54.88 0.40
US Steel
X
27.59 0.29
UnitedTech UTX 121.46 1.34
UnitedHealth UNH 211.10 1.57
UniversalHealthB UHS 102.40 0.28
UnumGroup UNM 52.91 0.91
VEREIT
VER 7.92 0.05
VF
VFC 69.91 -0.24
Visa
V
110.98 -0.09
s VailResorts MTN 231.80 1.33
Vale
VALE 10.26 0.22
s ValeroEnergy VLO 81.59 0.88
Vantiv
VNTV 68.80 -1.05
VarianMed VAR 104.67 0.45
Vedanta
VEDL 21.30 0.08
VeevaSystems VEEV 60.95 0.40
Ventas
VTR 63.84 0.77
Verizon
VZ 47.46 -0.37
VistraEnergy VST 19.12 -0.09
VMware
VMW118.90 -0.22
VornadoRealty VNO 74.03 -0.57
VoyaFinancial VOYA 42.51 1.21
VulcanMaterials VMC124.27 3.25
WABCO
WBC 148.99 1.73
WEC Energy WEC 67.61 0.66
W.P.Carey WPC 68.55 0.32
Wabtec
WAB 76.43 -0.21
s Wal-Mart WMT 88.80 0.86
WasteConnections WCN 69.75 -0.12
WasteMgt WM 81.65 0.55
Waters
WAT 197.91 -0.14
Watsco
WSO 166.05 0.62
Wayfair
W 62.84-11.57
s WellCareHealth WCG 200.93 0.02
WellsFargo WFC 56.48 0.66
Welltower HCN 67.72 0.70
WestPharmSvcs WST 100.00 -0.89
WestarEnergy WR 53.31 0.46
WestAllianceBcp WAL 56.51 0.48
WesternGasEquity WGP 38.16 -0.70
t WesternGasPtrs WES 46.39 -0.93
WesternUnion WU 20.08 0.10
WestlakeChem WLK 85.62 -0.31
WestpacBanking WBK 25.65 0.13
WestRock WRK 59.82 -1.51
Weyerhaeuser WY 35.61 -0.20
WheatonPrecMetals WPM 20.68 -0.05
Whirlpool WHR 163.41 -1.01
Williams
WMB 28.11 -0.68
WilliamsPartners WPZ 36.51 -0.64
Wipro
WIT 5.18 -0.03
WooriBank WF 43.97 -0.51
Wyndham WYN 107.46 0.24
s XPO Logistics XPO 71.56 1.86
XcelEnergy XEL 49.26 0.03
Xerox
XRX 29.48 -0.81
Xylem
XYL 67.06 0.91
YPF
YPF 24.66 0.16
s YumBrands YUM 79.15 4.84
YumChina YUMC 40.17 0.28
ZTO Express ZTO 16.71 -0.21
ZayoGroup ZAYO 35.62 0.04
ZimmerBiomet ZBH 112.32 -2.77
s Zoetis
ZTS 67.31 2.80
NASDAQ
AGNC Invt AGNC 19.85 -0.35
s Ansys
ANSS 148.68 13.08
ASML
ASML 182.25 0.85
Abiomed
ABMD 190.05 1.16
ActivisionBliz ATVI 65.45 0.12
s AdobeSystems ADBE 180.94 4.69
AkamaiTech AKAM 52.29 -0.40
AlexionPharm ALXN 115.63 -0.43
AlignTech ALGN 233.47 -1.48
Alkermes ALKS 48.84 0.19
s AlnylamPharm ALNY 133.59 12.50
Alphabet A GOOGL 1042.97 0.38
Alphabet C GOOG 1025.58 0.08
s Altaba
AABA 70.51 -0.08
Amazon.com AMZN 1094.22 -9.46
Amdocs
DOX 63.25 -1.12
Amerco
UHAL 393.18 -2.99
AmericanAirlines AAL 47.36 -0.48
Amgen
AMGN 172.41 -3.01
AnalogDevices ADI 90.79 -0.20
Apple
AAPL 168.11 1.22
AppliedMaterials AMAT 56.26 0.55
ArchCapital ACGL 95.38 -2.47
Atlassian
TEAM 49.43 0.74
Autodesk ADSK 124.72 -0.06
ADP
ADP 114.34 -1.06
BOK Fin
BOKF 86.55 0.57
Baidu
BIDU 242.09 -3.34
BankofOzarks OZRK 46.45 0.36
Biogen
BIIB 309.40 -6.33
BioMarinPharm BMRN 82.74 1.82
Bioverativ BIVV 53.65 -1.00
bluebirdbio BLUE 154.05 11.10
BrighthouseFin BHF 59.23 -2.82
Broadcom AVGO259.50 0.21
Amount
Yld % New/Old Frq
9.8
4.7
1.3
1.3
1.1
3.2
4.1
4.4
4.5
5.2
5.2
4.9
1.5
1.7
1.9
2.2
2.4
2.4
2.8
2.8
2.9
1.9
1.3
6.4
5.8
4.2
5.0
6.8
6.0
6.8
5.8
5.1
5.2
5.3
5.8
5.2
5.3
5.6
5.1
1.4
2.7
4.8
3.2
4.0
3.3
2.5
9.3
6.9
7.8
7.9
7.7
4.0
4.4
8.7
7.6
5.8
5.7
9.1
9.4
4.7
8.7
5.5
9.1
7.3
7.4
3.6
5.7
4.2
5.1
4.4
5.7
5.1
4.8
4.2
3.9
.076
.0859
.48
2.61
.0245
.0668
.0842
.0909
.0946
.1086
.1153
.1059
.0257
.0296
.0344
.0384
.0419
.042
.0481
.0486
.0478
.0857
.055
.138
.0547
.069
.0535
.066
.05
.084
.0636
.0583
.0344
.0554
.0591
.0521
.0546
.0205
.062
.04134
.21449
.36452
.06855
.0868
.06936
.05403
.12
.0975
.14
.1222
.14
.045
.043
.06225
.03101
.0255
.0225
.03169
.02245
.038
.04457
.0315
.05035
.06
.0705
.039
.0725
.06
.058
.054
.103
.0955
.062
.059
.034
M
M
A
A
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Payable /
Record
Nov30 /Nov22
Nov30 /Nov22
Dec29 /Nov13
Dec29 /Nov13
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov07 /Nov03
Nov30 /Nov13
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov08 /Nov03
Nov08 /Nov03
Nov08 /Nov03
Nov08 /Nov03
Nov08 /Nov03
Nov08 /Nov03
Nov08 /Nov03
Nov30 /Nov15
Nov30 /Nov13
Nov30 /Nov13
Nov30 /Nov13
Nov30 /Nov13
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov15
Nov30 /Nov16
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
52-Wk %
Sym Hi/Lo Chg Stock
WillisTwrsWatson WLTW
WisdTrEM CpBd EMCB
Xunlei
XNET
ZAGG
ZAGG
Zogenix
ZGNX
165.00 -2.1 Caesarstone
73.96 0.9 CaladriusBiosci
13.28 -4.3 CapitalaFinance
19.38 20.1 Cardtronics
42.50 7.8 Cartesian
Net
Sym Close Chg
Stock
CA
CA 32.41 -0.52
CDK Global CDK 63.39 0.40
CDW
CDW 70.00 1.08
s CH Robinson CHRW 79.55 0.22
s CME Group CME 140.30 4.16
CSX
CSX 51.62 1.47
s CadenceDesign CDNS 43.79 0.78
Carlyle
CG 22.50 0.40
s CboeGlobalMkts CBOE 115.57 2.94
Celgene
CELG 98.20 -2.33
Cerner
CERN 65.47 -0.02
CharterComms CHTR 337.66 -0.56
CheckPointSftw CHKP106.62 3.61
ChinaLodging HTHT123.68 -3.91
CincinnatiFin CINF 72.56 1.85
Cintas
CTAS 147.55 0.43
CiscoSystems CSCO 34.21 -0.41
CitrixSystems CTXS 82.36 0.13
Cognex
CGNX 127.42 2.46
CognizantTech CTSH 74.36 0.82
Coherent
COHR 254.47 -2.30
Comcast A CMCSA 35.15 -0.93
CommerceBcshrs CBSH 58.11 0.33
CommScope COMM 33.49 -0.74
Copart
CPRT 36.50 0.66
CoStarGroup CSGP 293.62 -1.51
Costco
COST 164.95 2.26
Ctrip.com
CTRP 46.46 -1.09
DISH Network DISH 48.27 -0.50
DentsplySirona XRAY 61.16
...
DiamondbackEner FANG 108.97 -0.81
t DiscoveryComm A DISCA 17.31 -1.85
t DiscoveryComm C DISCK 16.26 -1.83
s DollarTree DLTR 92.55 1.43
E*TRADE ETFC 44.45 0.91
EastWestBancorp EWBC 59.89 0.16
eBay
EBAY 37.40 -0.14
ElbitSystems ESLT 149.70 1.84
ElectronicArts EA 112.69 -1.78
s Equinix
EQIX 488.68 21.62
Ericsson
ERIC 6.33 0.05
ErieIndemnity A ERIE 122.70 0.52
Exelixis
EXEL 25.52 1.29
Expedia
EXPE 123.51 1.46
ExpeditorsIntl EXPD 58.16 -0.31
ExpressScripts ESRX 60.32 -2.00
F5Networks FFIV 121.01 0.41
Facebook
FB 178.92 -3.74
Fastenal
FAST 47.58 0.80
s FifthThirdBncp FITB 29.26 0.30
FirstSolar FSLR 57.87 0.66
Fiserv
FISV 126.58 1.06
Flex
FLEX 18.00 -0.03
FlirSystems FLIR 46.72 0.17
Fortinet
FTNT 38.61 -0.16
Gaming&Leisure GLPI 36.36 0.04
Garmin
GRMN 58.86 -0.94
GileadSciences GILD 73.81 -1.02
Goodyear GT 29.94 -0.29
Grifols
GRFS 23.24 0.04
HD Supply HDS 35.77 0.31
Hasbro
HAS 89.61 -0.86
HenrySchein HSIC 76.30 -0.94
Hologic
HOLX 38.42 0.22
JBHunt
JBHT 107.38 1.43
HuntingtonBcshs HBAN 13.87 0.06
s IAC/InterActive IAC 129.50 1.11
IdexxLab
IDXX151.83 -7.41
IHSMarkit INFO 42.93 0.23
INC Research INCR 57.05 -0.15
IPG Photonics IPGP 207.34 0.90
IRSA Prop IRCP 55.50 -0.50
IcahnEnterprises IEP 55.75 -0.19
Icon
ICLR 120.47 -0.46
Illumina
ILMN 208.82 1.08
Incyte
INCY 106.51 -1.45
s Intel
INTC 47.10 0.39
s InteractiveBrkrs IBKR 54.99 1.14
Intuit
INTU 152.15 0.79
s IntuitiveSurgical ISRG 379.75 3.71
IonisPharma IONS 51.82 -5.94
JD.com
JD 37.88 0.02
s JackHenry JKHY 110.97 1.21
JazzPharma JAZZ 136.94 -4.53
JetBlue
JBLU 18.92 -0.03
KLA Tencor KLAC 106.38 1.23
KraftHeinz KHC 78.03 0.33
LKQ
LKQ 37.74 0.32
LamResearch LRCX 206.82 3.90
LamarAdvertising LAMR 69.74 0.50
LibertyBroadbandA LBRDA 87.29 0.08
LibertyBroadbandC LBRDK 88.00 0.02
LibertyGlobal A LBTYA 31.62 0.28
LibertyGlobal C LBTYK 30.49 0.20
LibertyLiLAC A LILA 22.44 -0.17
LibertyLiLAC C LILAK 22.56 -0.17
LibertyQVC A QVCA 22.50 -0.10
LibertyVenturesA LVNTA 57.22 0.67
LibertyFormOne A FWONA 36.38 -0.35
LibertyFormOne C FWONK 38.05 -0.41
LibertyBraves A BATRA 22.76 -0.29
LibertyBraves C BATRK 23.00 -0.27
LibertySirius A LSXMA 41.06 -0.54
LibertySirius C LSXMK 41.09 -0.54
LincolnElectric LECO 91.35 0.32
LogitechIntl LOGI 35.53 -0.45
LogMeIn
LOGM 122.90 -0.80
Company
Symbol
Nuveen CA Quality Muni
Nuveen Credit Opps 2022
Nuveen Credit Strt Inc Fd
Nuveen CT Qual Muni
Nuveen Enhncd Mun Val Fd
Nuveen GA Qual Muni
Nuveen Gl Hi Incm Fd
Nuveen Hi Incm 2020
Nuveen Hi Incm Nov 2021
Nuveen High Incm Dec18
Nuveen High Incm Dec19
Nuveen Ins CA
Nuveen Insured NY Select
Nuveen Intermed Dur Mun
Nuveen MA Qual Muni
Nuveen MD Qual Muni
Nuveen MI Qual Muni
Nuveen MN Qual Muni
Nuveen MO Qual Muni
Nuveen Mtg Opp Term Fd
Nuveen Mtg Opp Term Fd 2
Nuveen Multi-Market Incm
Nuveen Mun Credit Incm Fd
Nuveen Muni 2021 Target
Nuveen Muni Income Fund
Nuveen Muni Value Fund
Nuveen NC Qual Muni
Nuveen NJ Munl Value Fund
Nuveen NJ Qual Muni
Nuveen NY AMT-Free
Nuveen NY Mun Value 2
Nuveen NY Muni Value Fund
Nuveen NY Qual Muni
Nuveen OH Qual Muni
Nuveen PA Mun Value Fund
Nuveen PA Qual Muni
Nuveen Pfd & Incm 2022
Nuveen Pfd & Incm Opps Fd
Nuveen Pfd & Incm Secs Fd
Nuveen Preferred & Incm
Nuveen Qual Mun Incm Fd
Nuveen Real Asset Income
Nuveen Sel 3
Nuveen Sel Tax Free
Nuveen Sel TF
Nuveen Select Maturities
Nuveen Senior Income Fund
Nuveen Shrt Dur Cr Opp Fd
Nuveen TX Qual Muni
Nuveen VA Qual Muni
NuveenMuniIncoOpp Fd
NuvFloatRteInco Fd
Templeton Global
NAC
JCO
JQC
NTC
NEV
NKG
JGH
JHY
JHB
JHA
JHD
NXC
NXN
NID
NMT
NMY
NUM
NMS
NOM
JLS
JMT
JMM
NZF
NHA
NMI
NUV
NNC
NJV
NXJ
NRK
NYV
NNY
NAN
NUO
NPN
NQP
JPT
JPC
JPS
JPI
NAD
JRI
NXR
NXP
NXQ
NIM
NSL
JSD
NTX
NPV
NMZ
JFR
GIM
Net
Sym Close Chg
Stock
lululemon LULU 60.76 -0.73
MKS Instrum MKSI 107.15 1.55
MarketAxess MKTX 176.50 0.77
s Marriott
MAR 119.64 -0.52
MarvellTech MRVL 18.28 -0.01
s MatchGroup MTCH 27.57 0.77
MaximIntProducts MXIM 52.34 0.01
MelcoResorts MLCO 25.54 -0.98
MercadoLibre MELI 236.00 -3.02
MicrochipTech MCHP 93.46 0.47
MicronTech MU 44.34 -0.04
Microsemi MSCC 53.74 0.58
Microsoft MSFT 84.05 0.87
Middleby
MIDD 116.62 0.83
Momo
MOMO 30.28 -0.08
Mondelez MDLZ 41.16 -0.11
MonsterBeverage MNST 57.45 -0.35
Mylan
MYL 35.34 -1.51
NXP Semi NXPI 117.46 0.16
Nasdaq
NDAQ 73.17 0.76
NatlInstruments NATI 44.79 -0.20
NetApp
NTAP 44.25 -0.28
Netease
NTES 276.10 0.13
Netflix
NFLX 199.32 1.32
NewsCorp A NWSA 13.80 0.09
NewsCorp B NWS 14.05
...
Nordson
NDSN 126.46 0.08
NorthernTrust NTRS 94.01 0.60
NorwegianCruise NCLH 54.91 0.71
NVIDIA
NVDA 205.94 -1.26
OReillyAuto ORLY 214.52 6.96
OldDomFreight ODFL 121.43 1.46
ON Semi
ON 21.24 0.07
OpenText OTEX 34.20 -0.06
s PTC
PTC 66.45 0.64
Paccar
PCAR 71.96 0.98
PacWestBancorp PACW 47.63 0.09
Paychex
PAYX 64.54 0.40
PayPal
PYPL 72.25 -0.13
People'sUtdFin PBCT 18.62 0.09
PilgrimPride PPC 31.62 0.03
Priceline
PCLN 1911.14 -1.92
Qiagen
QGEN 33.74 -0.52
Qorvo
QRVO 74.30 -0.16
Qualcomm QCOM 54.84 1.38
RandgoldRscs GOLD 90.58 -7.61
RegenPharm REGN 397.45 0.45
RossStores ROST 64.36 0.88
Ryanair
RYAAY 112.33 -0.82
SBA Comm SBAC 156.10 3.52
SEI Investments SEIC 64.60 0.22
Sina
SINA 108.34 -4.79
SS&C Tech SSNC 40.48 0.55
SVB Fin
SIVB 218.92 0.19
ScrippsNetworks SNI 80.97 -2.55
Seagate
STX 36.77 -0.19
SeattleGenetics SGEN 60.78 0.49
Shire
SHPG 145.44 -0.31
SignatureBank SBNY 130.47 0.77
SiriusXM
SIRI 5.34 -0.10
Skyworks SWKS 111.76 0.44
Splunk
SPLK 66.55 -0.44
Starbucks SBUX 54.87 -0.26
SteelDynamics STLD 37.50 -0.48
t Stericycle SRCL 67.92 -0.79
Symantec SYMC 29.38 -2.78
Synopsys SNPS 86.95 0.83
TD Ameritrade AMTD 49.87 0.57
TESARO
TSRO 110.87 -3.08
T-MobileUS TMUS 58.30 -1.45
TRowePrice TROW 94.63 2.06
TakeTwoSoftware TTWO 108.50 -2.06
Tesla
TSLA 299.26-21.82
TexasInstruments TXN 96.79 0.44
TractorSupply TSCO 59.66 0.38
Trimble
TRMB 39.79 -0.58
21stCenturyFoxA FOXA 25.81 -0.17
21stCenturyFoxB FOX 25.15 -0.23
UltaBeauty ULTA 202.90 -1.93
UltimateSoftware ULTI 210.84 7.72
UniversalDisplay OLED 144.35 1.65
VEON
VEON 3.82 -0.11
VeriSign
VRSN 109.38 0.52
VeriskAnalytics VRSK 91.02 1.14
VertxPharm VRTX 144.90 2.27
t Viacom A VIA 28.65 -2.00
t Viacom B VIAB 23.40 -1.38
Vodafone VOD 29.34 0.02
WPP
WPPGY 86.32 -1.01
WalgreensBoots WBA 66.78 -0.23
Weibo
WB 94.68 -1.92
WesternDigital WDC 88.60 -0.64
s WillisTwrsWatson WLTW 157.48 -3.43
Workday
WDAY 110.60 0.33
WynnResorts WYNN 150.05 -1.50
Xilinx
XLNX 72.48 -0.56
Yandex
YNDX 33.44 -0.59
ZebraTech ZBRA 112.70 -1.07
Zillow A
ZG 39.67 -0.86
Zillow C
Z
39.51 -0.79
ZionsBancorp ZION 46.85 0.63
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
Amount
Yld % New/Old Frq
5.1
5.6
6.9
4.5
5.7
4.0
8.4
5.8
5.9
4.2
5.2
3.8
4.1
4.9
4.5
4.7
4.8
4.8
4.0
5.2
5.5
5.7
5.9
2.1
4.3
3.8
4.0
3.9
5.1
4.7
3.8
3.8
5.0
4.5
3.7
5.2
6.0
7.4
7.2
6.7
5.2
7.1
3.5
3.7
3.6
3.1
7.0
7.3
4.4
4.2
5.7
7.0
2.4
.062
.047
.0475
.045
.068
.044
.12
.049
.05
.035
.044
.048
.046
.053
.0545
.05
.0535
.06
.053
.1135
.1125
.036
.074
.0175
.0405
.0325
.044
.0475
.058
.051
.046
.0315
.058
.0555
.047
.0585
.1275
.065
.062
.1415
.06
.106
.0435
.0455
.042
.026
.0395
.106
.053
.046
.065
.0675
.0133
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
47.34
27.75
25.36
30.57
-0.21
-0.01
-0.02
-1.66
Payable /
Record
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Dec01 /Nov15
Nov30 /Nov15
Stocks
Comstock Mining
1:5
LODE
/Nov10
Foreign
Cresud ADR
CS XLinks Month Pay 2xLev
Domtar
IRSA Propiedades Com ADR
IRSA-Inversions GDR
Thomson Reuters
Validus Hldgs Pfd. A
Validus Holdings Pfd. B
CRESY
REML
UFS
IRCP
IRS
TRI
VRpA
VRpB
2.0
6.2
3.5
4.4
9.3
3.1
5.7
5.7
CVRR
NHTC
2.5
.44861 A
.1469 M
Q
.415
1.22397 SA
1.38001 SA
Q
.345
.36719 Q
.3625 Q
/Nov13
Nov21 /Nov13
Jan15 /Jan02
/Nov13
/Nov13
Dec15 /Nov16
Dec15 /Dec01
Dec15 /Dec01
Special
CVR Refining
Natural Health Trends
.94
.15
Nov17 /Nov10
Nov24 /Nov14
Suspended
FreightCar America
Nov23 /
Q
RAIL
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
52-Wk %
Sym Hi/Lo Chg Stock
CSTE
CLBS
CPTA
CATM
CRTN
Cherokee
CHKE
ChinaBiologic
CBPO
Criteo
CRTO
2.18 -9.6 Curis
CRIS
11.93 -19.7 DepoMed
DEPO
9.08 -5.2 DiscoveryComm A DISCA
7.60 -8.1 DiscoveryComm C DISCK
10.60 -2.7 DragonVictory
LYL
0.13 -3.8 Egalet
EGLT
2.88 -4.7 Energous
WATT
19.38 -3.0 Essendant
ESND
11.60 4.5 Evogene
EVGN
1.80 3.8 FTD
FTD
2.62 1.5 Finisar
FNSR
9.55 -11.8 Fred's
FRED
5.79 -8.4 FrontierCommPfA FTRPR
Nasdaq lows - 76
ADMA Biologics ADMA
AMAG Pharm
AMAG
Aceto
ACET
Airgain
AIRG
AmCapSeniorFloat ACSF
ArgosTherap
ARGS
Atomera
ATOM
BedBath
BBBY
Bojangles'
BOJA
BravoBrioRestr BBRG
BroadwindEnergy BWEN
CF
CFCO
CHF Solutions
CHFS
Net
Sym Close Chg
Stock
23.28
2.63
7.94
18.26
0.26
2.00
74.38
36.63
1.45
4.31
17.00
16.01
4.53
0.91
8.51
9.15
3.60
10.42
18.88
4.35
15.00
-8.2
-8.3
-3.6
-18.2
-40.4
5.0
-3.3
-2.3
-1.3
-11.5
-9.7
-10.1
-7.2
2.3
-7.5
-1.7
-4.5
-0.5
-14.2
-3.3
2.3
52-Wk %
Sym Hi/Lo Chg Stock
GenMarkDiagn GNMK
GenoceaBiosci
GNCA
GlobalEagle
ENT
GreenPlains
GPRE
HabitRestaurants HABT
HalladorEnergy HNRG
HawaiianHoldings HA
Impinj
PI
ImprimisPharm IMMY
iShESG1-5YCpBd SUSB
KalaPharm
KALA
KayneAnAcqnUn KAACU
LexiconPharm
LXRX
LifePointHealth LPNT
MeetGroup
MEET
Net1UEPS
UEPS
NY Mortgage
NYMT
NuCana
NCNA
Oclaro
OCLR
OxfordImmunotec OXFD
Patterson
PDCO
7.13
1.05
1.92
16.25
9.05
5.00
32.50
19.97
1.35
25.07
13.51
9.90
9.88
45.60
3.29
8.91
5.90
10.25
5.93
12.40
35.69
-0.5
...
-8.1
-7.6
-24.7
-1.4
-1.6
-34.3
-3.4
...
-9.0
-0.1
0.6
-1.0
-1.8
-1.5
-2.1
-12.1
-25.7
-5.2
-0.4
52-Wk %
Sym Hi/Lo Chg
Precipio
PRPO
ProspectCapital PSEC
RMG Networks RMGN
RadiusHealth
RDUS
SearsHoldingsWt SHLDW
SearsHometown SHOS
SonusNetworks SONS
Stericycle
SRCL
TICC Capital
TICC
Teligent
TLGT
The9
NCTY
Travelzoo
TZOO
Tuniu
TOUR
US Gold
USAU
VeecoInstr
VECO
VeraBradley
VRA
Viacom B
VIAB
Viacom A
VIA
WestwaterRscs WWR
WheelerREITPfdB WHLRP
Ziopharm
ZIOP
1.40
5.51
1.18
29.54
0.83
1.45
7.02
67.46
5.17
5.29
0.82
6.50
6.69
1.08
17.10
7.01
23.39
28.65
0.78
17.69
4.34
-3.6
-5.3
...
-2.3
-8.1
-7.6
4.6
-1.1
-10.1
-2.4
-7.8
-0.8
1.6
-5.2
2.0
-0.3
-5.6
-6.5
-4.0
0.8
-1.6
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B10 | Friday, November 3, 2017
* ***
THE WALL STREET JOURNAL.
BANKING & FINANCE
Insurer swings to loss
totaling $1.74 billion;
separate claim reserve
surprises investors
BY LESLIE SCISM
American
International
Group Inc. swung to a $1.74 billion third-quarter loss as it absorbed one of the insurance industry’s single biggest hits from
hurricanes and also boosted unrelated claims reserves.
The results reflect the first
full quarter under the leadership of Brian Duperreault, who
was named CEO in May as the
global insurance conglomerate
was struggling to improve its
profitability. The industry veteran has begun putting his
stamp on the company with
new hires.
But the quarter also included
an unusual back-to-back string
of hurricanes that flooded
Houston for days and left much
of Puerto Rico devastated.
AIG’s pretax catastrophe
losses totaled $3 billion, primarily from the hurricanes
Harvey, Irma and Maria. AIG
had estimated the catastrophe
cost last month at up to $3.1
billion. Across the global insurance industry, insurers are
facing a bill of $68 billion to
$148 billion based on estimates by risk-modeling firms.
The separate pretax reserve
boost of $836 million in AIG’s
commercial-insurance
unit
came as a surprise. Reserve
boosts at AIG—a leading
world-wide seller of often
complicated property and casualty policies to multinationals and other large companies—had plagued the tenure
of Mr. Duperreault’s predecessor, and many investors are
hoping the worst is behind.
A string of hurricanes
resulted in pretax
catastrophe losses
of about $3 billion.
The
increase,
which
amounts to just under 2% of
reserves as of June 30, primarily relates to policies sold in
2016, the company said. In
Thursday’s news release, Mr.
Duperreault said the strengthening was “based on additional
information that became available in the third quarter.”
Mr. Duperreault said AIG is
“laser focused [on] taking actions to enhance underwriting
tools and, more importantly,
our talent base—so much so
that I have declared 2018 the
‘Year of the Underwriter.’”
The reserve boost meant
AIG’s results didn’t meet analysts’ consensus expectation of
a loss of 79 cents a share on
an operating basis. Instead,
AIG posted an operating loss
of $1.11 billion, or $1.22 a
share, compared with profit of
$1.12 billion, or $1.01 a share,
in the year-earlier period.
Insurers’ operating results
exclude realized capital gains
and losses in their investment
portfolios and some other
items considered nonrecurring. AIG’s net loss of $1.74
billion compares with a profit
of $462 million in the yearearlier period.
AIG’s shares fell 2.7% in after-hours trading.
Since arriving, Mr. Duperreault has shuffled the company’s structure and top leadership, and hired numerous
senior executives from brokerage and consulting firm Marsh
& McLennan Cos., which he
ran from 2008 to 2012, and
other insurance companies.
He has pledged to halt the
retrenchment that began when
AIG accepted a U.S. government bailout in 2008.
Heard on the Street: AIG
needs refresher in risk....... B12
China’s Ruling Party Tied to Hot Property
STREET
Continued from page B1
richer than the continent’s
Catholic South.
Studies since have debunked Weber’s ideas, showing that it is education and
openness to ideas that matter, not Protestantism itself.
Hans-Joachim Voth, a professor at the University of
Zurich, points to higher literacy levels in Protestant
countries as recently as
1900, a hangover from when
early Protestants, unlike
early Catholics, read the Bible for themselves. These
same countries remain
among the world’s richest.
If it is education that matters to economic development, rather than a tradition
of challenging authority, that
is good news for China. The
country has a better education system than most middle-income countries, and
students in four of its
wealthy provinces produce
some of the world’s best results in tests administered
by the Paris-based Organization for Economic Cooperation and Development.
Yet, research suggests a
lingering positive effect from
individualism, not merely
from education. Mr. Phelps
and collaborators Saifedean
Ammous, Raicho Bojilov and
China’s Communist Party has links to the buyer of a stake in The Center, a Hong Kong tower seen on right in ‘The Dark Knight.’
filings show. Mr. Zhang confirmed this.
China Hualian, in turn, is ultimately owned by the International Department of the Central Committee of the
Communist Party of China, the
filings show.
The department represents
the Communist Party in its
overseas affairs and deals with
foreign parties and political
organizations in more than 160
countries, according to its
website.
The department’s link to
this huge property transaction
is unusual: It doesn’t appear to
have a direct stake in any other
businesses in China, based on a
review of the nation’s company
registry database. Other big
state-owned Chinese companies have bought property in
Hong Kong in recent years, but
those companies are owned by
the state, rather than the Communist Party.
With this deal, “the party
seems to be taking on a role
traditionally reserved for
state-owned companies and
private business,” said Fraser
Howie, co-author of the book
“Red Capitalism: The Fragile
Financial
Foundation
of
Individualism and Economic Growth
The more individualistic a country is, the better it has used
its labor and capital.
1.0%
U.S.
Sweden
0.9
Finland
0.8
Annual average TFP growth rate*
HONG KONG—Hong Kong’s
richest person has just reached
one of the world’s largest-ever
property deals, and it involves
the Communist Party of China.
Billionaire Li Ka-shing’s CK
Asset Holdings Ltd. sold its
stake in a skyscraper, The Center, for 40.2 billion Hong Kong
dollars (US$5.15 billion) to
CHMT Peaceful Development
Asia Property Ltd., a British
Virgin Islands-incorporated vehicle set up specifically for the
purchase, CK Asset said late
Wednesday.
CHMT appears to stand for
China, Hong Kong, Macau, and
Taiwan, based on its name in
Chinese characters.
The transaction is the
world’s largest ever commercial property deal for a single
building, according to data
from CBRE, a real-estate services firm.
About 55% of CHMT’s
shares are owned by a Hong
Kong unit of China Energy Reserve & Chemicals Group, a
Beijing-based conglomerate
that specializes in the oil-andgas industry, the group confirmed to The Wall Street
Journal on Thursday.
“We’re
responding
to
China’s call to explore the overseas market,” says Zhang Wenbin, a China Energy Reserve &
Chemicals executive. In a telephone interview, he confirmed
he is also a director at two of
its Hong Kong affiliates. “Our
wish is to own a few floors in
some of Hong Kong’s hallmark
office buildings and maybe put
our logo on the top.”
“The price isn’t high,” he
added.
Unlike other Chinese companies that have grabbed overseas assets in recent years, a
piece of the conglomerate is
owned by China’s sole ruling
party, corporate filings show.
One of China Energy Reserve &
Chemicals’ four owners is an
entity called China Hualian
International Trade Co.,
which holds a 15% stake, the
WARNER BROS/EVERETT COLLECTION
BY WENXIN FAN
AND NATASHA KHAN
Denmark
0.7
Trend
U.K.
Ireland
0.6
0.5
Austria
Netherlands
0.4
Canada
0.3
Portugal
0.2
0.1
0
Norway
Spain
Japan
0.40
0.45
Belgium
France
0.50
Italy
0.55
Germany
0.60
0.65
0.70
Index of modernism/individualism
*TFP=total factor productivity, 1990-2013
Source: Phelps, Ammous, Bojilov, Zoega (forthcoming)
Gylfi Zoega show that even
in recent years, countries
with more individualistic
cultures have more innovative economies.
They demonstrate a link
between countries that surveys show are more individualistic and total factor productivity, a proxy for
innovation measuring
growth due to more-efficient
THE WALL STREET JOURNAL.
use of labor and capital.
Less-individualistic cultures,
such as France, Spain and
Japan, showed less innovation than the individualistic
U.S.
As Mr. Bojilov points out,
correlation doesn’t prove
causation, so they looked at
the effects of country of origin on the success of second, third- and fourth-genera-
OLIVER CONTRERAS/WASHINGTON POST/GETTY
AIG Absorbs Shocks From Storms
Robert Mercer
Mercer
Quits
As Fund
Leader
BY GREGORY ZUCKERMAN
Hedge-fund billionaire Robert
Mercer, who gained attention
outside Wall Street for backing
President Donald Trump, is resigning as co-CEO of Renaissance Technologies LLC.
For over two decades, Mr.
Mercer helped Renaissance
generate gains that few rivals
could match. But over the past
year both Renaissance and Mr.
Mercer have grown uncomfortable with the public focus
on his political activities. Mr.
Mercer wasn’t happy that the
firm recently received negative attention, according to
someone close to the matter.
In recent weeks, some organizations have publicly tried
to pressure universities, retirement funds and other institutional clients to pull
money from the firm. One investor who called the firm
Wednesday was told by a firm
representative that negative
publicity surrounding Mr.
Mercer’s political activities
was a key reason behind his
resignation, according to
someone familiar with the call.
The former computer programmer has long expressed
distrust for the political establishment and in recent years
was a backer of conservative
media company Breitbart
News. He was little known
outside the investing world
until he provided crucial financial support for Mr. Trump
as the Republican’s candidacy
lagged in the summer of 2016.
Mr. Mercer and his daughter Rebekah advised the
Trump campaign and suggested the installation of two
family confidants, Steve Bannon and Kellyanne Conway.
In a letter to employees
sent Thursday morning, Mr.
Mercer, 71, said that the media
has unfairly linked him to Mr.
Bannon: “I have great respect
for Mr. Bannon, and from time
to time I do discuss politics
with him. However, I make my
own decisions with respect to
whom I support politically.”
Mr. Mercer said in the letter that he had also decided to
sell his stake in Breitbart to
his daughters.
Mr. Mercer declined to comment through a spokesman. Representatives for Breitbart and
Mr. Bannon couldn’t be reached
immediately to comment.
China’s Extraordinary Rise.”
The Communist Party “is
putting itself front and center
of China going abroad, which
fits into the narrative of the
absolute role the party has for
all things China—that it’s the
future and there’s no room for
anyone else,” he said.
Mr. Zhang declined to comment on the nature of his company’s link to the party department and its involvement in
the property deal.
The Center, at 73 stories, is
an instantly recognizable part
of Hong Kong’s skyline. It was
featured in the second install-
ment of filmmaker Christopher
Nolan’s Dark Knight Trilogy,
“The Dark Knight,” in a scene
where
Batman
plunges
through a window to capture a
villain. It is the fifth-tallest
building in Hong Kong, according to the Skyscraper Center, a
database.
Rumors that Mr. Li was seeking a buyer have been circulating for months. Office rents in
Hong Kong’s Central district,
where The Center is located,
are the world’s most expensive,
according to CBRE, which
tracked prices in 121 districts
for the first half of the year.
tion Americans as
entrepreneurs. The effects
turn out to be significant but
leave room for debate about
how important individualistic attitudes are to financial
and economic success.
China’s model allows for
freedom within the business
world even as it permits little or no freedom of expression in politics, arts or culture. As it moves toward
domestically focused growth,
it will be a natural experiment: Is freedom within the
financial and business
realms enough, or does a
successful economy require
broader freedom of speech?
China’s economy had a good
run and produced plenty of
technical and financial innovation recently. But as the
regime grows increasingly
authoritarian, can innovation
continue?
Liberty is an end in itself,
and human rights alone argue for more personal freedom in China. But the argument is much easier to make
if individual freedoms make
people richer too. Luther
himself merely wanted to
grow closer to God, and
would surely be horrified to
find he was one of the
sources of capitalism. Yet
the argument about how to
balance individual and community rages still. Will the
individualism of the West
continue to triumph?
Credit Suisse’s Focus
On Wealthy Pays Off
BY BRIAN BLACKSTONE
ZURICH—Credit
Suisse
Group AG reported a sharp
rise in third-quarter profit on
strong growth at its wealthmanagement division, indicating the Swiss banking giant’s
strategic shift toward managing wealthy clients’ money is
paying off.
The results—which come after crosstown rival UBS Group
AG reported strong profit
growth last week—provide relief for the Swiss banking sector, which has been beset for
years by negative interest
rates, hefty legal settlements
and regulatory changes to
bring its rules in line with
global norms on the automatic
exchange of client information.
“I think in Switzerland people can take comfort from the
joint success of Credit Suisse
and UBS,” Credit Suisse Chief
Executive Tidjane Thiam told a
press conference.
Credit Suisse said quarterly
net profit was 244 million
francs ($243.2 million), up
from 41 million francs in the
year-earlier period.
The increase was driven by
improvement at its international wealth-management unit,
where pretax income grew 59%
to 382 million francs, boosted
by strong growth in Asia.
Net new assets rose 8% to
10.4 billion francs, pushing assets under management to a
record 751 billion francs.
Credit Suisse shares jumped
4.5% to 16.34 Swiss francs, for
their highest close since January 2016.
Credit Suisse is two years
into an overhaul under Mr.
Thiam. The bank is reorienting
away from profitable, but volatile, investment banking toward the more stable business
of managing money for wellheeled clients.
However,
restructuring
hasn’t been without costs. The
bank’s shares are still down
about 30% since the turnaround program began. That is
partly because of two capital
increases, in 2015 and this
year, which increased the
number of shares, diluting
their value.
Mr. Thiam noted that Credit
Suisse’s 40 billion franc market capitalization is back to
where it was in early 2015.
Credit Suisse said it generated cost savings of about 400
million francs in the third
quarter, taking nine-month cumulative cost savings to about
one billion francs.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | B11
* * * * * *
MARKETS
Uploading
How many dollars one bitcoin buys
$7,400
Traders Digest Tax-Code Plan
Blue chips recover
to set another high;
lower corporate rate
would boost banks
7,300
7,200
7,100
6,800
Thursday
*Price through 6 p.m. EDT
Source: CoinDesk
THE WALL STREET JOURNAL.
Bitcoin
Price
Exceeds
$7,000 for
First Time
BY PAUL VIGNA
The price of the digital currency bitcoin smashed through
the $7,000 mark for the first
time on Thursday, a new milestone for the surging asset.
Bitcoin quickly slipped back
below that mark before resuming its ascent.
Late Thursday, the digital
currency was trading at $7,051,
according to CoinDesk. It had
traded as high as $7,355 earlier in the day.
The advance was just the latest plateau for the currency,
which has surged this year despite several setbacks. Those
have included a near-total ban in
China and a bitter fight within
the bitcoin industry over how
best to expand the network.
Bitcoin’s ability to shrug off
those developments shows
that its trading community,
which is still relatively small
and insular, remains bullish.
Based on the morning high,
bitcoin was up as much as
658% on the year. Thursday’s jump also came amid
selling in most of the other
big cryptocurrencies. Ether
was down 2.9% at $289 on
Thursday, ripple was down
0.7% at 20 cents, and litecoin
was down 0.7% at $54. On the
other hand, Bitcoin Cash, itself
a near-identical copy of bitcoin, was up 16% at $588.
Bitcoin’s latest surge occurred just days after CME
Group Inc. announced plans to
begin offering a bitcoin futures contract, a potentially
significant development that
would for the first time give
Wall Street traders an avenue
to bet on bitcoin prices and
hedge against volatility. That
kind of market, which exists
for more-mature assets, is believed to be a crucial ingredient in bitcoin’s move into institutional and retail markets.
First unveiled in 2008, bitcoin is a digital asset that exists across a network of linked
computers that all run an
identical version of the same
program. The heart of that
program is an open ledger of
transactions.
Every bitcoin trade goes
into the ledger, and each computer on the network maintains an identical, constantly
updated copy of the ledger,
which makes counterfeiting
bitcoins impossible.
A Lowe’s in Burbank, Calif. Its stock fell 4.1% as home-improvement shares were dragged down.
mally announced that he
would nominate Federal Reserve governor Jerome Powell
to be the next chairman of the
central bank, as expected.
The Dow industrials gained
81.25 points, or 0.3%, to
23516.26, its third consecutive
day of gains and 55th record
close of the year. The S&P 500
rose 0.49 point, or less than
0.1%, to 2579.85 and the Nasdaq
Composite shed 1.59 points, or
less than 0.1%, to 6714.94.
The tax plan—long anticipated by investors as a potential boost for profits at U.S.
companies—aims to permanently chop the corporate-tax
rate, compress the number of
individual income-tax brackets
and eventually repeal the taxes
paid by large estates.
Components for individual
taxpayers, such as limits on
the home mortgage-interest
deduction and caps on property-tax deductions, contributed to moves among consumer stocks, specifically
home builders, analysts said.
“There’s a general disappointment in the individual
side of things,” said Yousef
Abbasi, global market strategist at JonesTrading. “The
biggest tax cut went to the
corporations.”
Shares of consumer-discretionary stocks in the S&P 500
slid 0.8%.
Home builder Lennar fell
$1.86, or 3.3%, to $55.10, while
PulteGroup declined 32 cents,
or 1.1%, to 30.09. Home-improvement companies were
dragged down too, with Home
Depot shares falling 2.67, or
1.6%, to 162.71 and Lowe’s declining 3.27, or 4.1%, to 76.65.
Investors and analysts cautioned to not read too deeply
into Thursday’s market moves
since the tax plan could
change as Republicans work to
push it through the House and
the Senate. And if the plan falters, similar to Republicans’
earlier attempts to overhaul
the Affordable Care Act, ana-
HNA Group
Returns to
Debt Market
Oil Climbs to Highest in Two Years
BY ANJANI TRIVEDI
LUKE SHARRETT/BLOOMBERG NEWS
6,900
The Dow Jones Industrial
Average recovered from early
losses to close at a fresh high,
as investors assessed House
Republicans’ proposal for the
biggest tax-code overhaul in
decades.
The Dow
THURSDAY’S i n d u s t r i a l s
MARKETS
fell more than
80 points after a detailed
summary of the tax plan was reported, but the blue-chip index
rallied later in the session. Declines in shares of home builders and other consumer-discretionary stocks kept pressure on
the S&P 500, which eked out a
slight gain for the day.
Shares of financial companies extended gains toward the
close, helping major indexes
recoup earlier losses. A lower
corporate-tax rate, a key item
in Republicans’ tax plan, would
immediately boost banks’ profits if passed, analysts said.
“A lot of financial companies pay quite close to the full
[tax] rate, so we’d expect that
positive sentiment to keep lifting that space,” said R.J.
Grant, director of equity trading at KBW Inc.
Financial stocks in the S&P
500 rose 0.9%.
Also late in the session,
President Donald Trump for-
PATRICK T. FALLON/BLOOMBERG NEWS
BY MICHAEL WURSTHORN
7,000
lysts expect a muted reaction.
“If taxes don’t get done, it
won’t have a meaningful impact on markets,” said
Krishna Memani, chief investment officer of OppenheimerFunds. “Markets have rallied
this year because of global
growth and earnings.”
Other moves followed
mixed quarterly results from
U.S. companies.
Shares of Newell Brands,
the maker of Sharpie markers
and Rubbermaid containers,
slumped 10.99, or 27%, to 30.01
after the company cut earnings guidance for the year.
Facebook, which remains
under scrutiny over alleged
Russian propagandists’ activity during the election, fell
3.74, or 2%, to 178.92 after reporting a jump in profit.
Shares of Blue Apron
dropped 87 cents, or 19%, to
3.80—an all-time low—after the
meal-kit company posted a loss
and shed customers in the third
quarter. The company went
public in June at $10 a share.
Elsewhere, the Stoxx Europe 600 fell 0.5%.
Asia-Pacific stocks struggled for direction early Friday.
Australian stocks stood out,
hitting fresh 2017 highs amid
commodity-price gains. The
S&P/ASX 200 was up 0.5% at
5964. But Korea’s Kospi was
flat and most benchmarks in
the region were within 0.2% of
Thursday’s closing levels as
Japan’s markets were closed
Friday for a holiday.
—Akane Otani
and Lucy Craymer
contributed to this article.
Classic cars under a rainbow at a gas station in Burton, Mich. Stronger demand plus reduced supplies have lifted oil prices.
Oil prices hit a two-year high
amid growing optimism that the
crude glut is shrinking.
U.S. crude futures rose 24
cents, or 0.4%, to $54.54 a
barrel, the highest since July 2,
2015. The U.S. benchmark has
gained in 15 of the past 19
sessions. Brent, the global
benchmark, rose 13 cents, or
0.2%, to $60.62 a barrel.
Brent prices broke above $60
a barrel last week for the first
time since July 2015, supported
by expectations that an
agreement to cut output between
the Organization of the Petroleum
Exporting Countries and other
major producers including Russia
would be extended beyond its
current time frame of March
2018.
Analysts said oil remains underpinned by falling U.S. inventories, which is helping to drain
the buildup of global stocks, accumulated over several years of
surplus supply. The U.S. Energy
Information Administration published data Wednesday showing
crude stockpiles fell by 2.4 million barrels in the week ended
Oct. 27.
Stronger-than-expected
demand plus reduced supplies
have converged to lift prices in
recent weeks, analysts said.
“On a global basis, betterthan-expected oil demand is
likely developing off of strong
world economies,” Jim
Ritterbusch, president of
Ritterbusch & Associates, wrote
in a research note. “This demand
strength is crisscrossing against
continued downsized OPEC
production where compliance to
this year’s agreement remains
much stronger than generally
expected.”
Still, the rally may be slowing
as market participants wait to
see whether OPEC will extend
its cuts when it meets Nov. 30.
—Alison Sider
and Sarah McFarlane
Acquisitive Chinese conglomerate HNA Group Co.
tapped the short-term debt
markets for the second time in
a week, as a unit offered on
Thursday to pay sharply
higher interest rates to woo
investors, according to people
familiar with the matter.
An HNA subsidiary agreed
to pay 8.875% interest on new
U.S. dollar bonds that mature
in slightly under a year, the
people said. That is nearly 3
percentage points more than
what the same company
agreed to pay on three-year
debt it sold in May, which had
a 6% coupon. Those bonds mature in 2020 and were recently
yielding 6.7%.
The issuer, HNA Group (International) Co. Ltd., a Hong
Kong-based investment and
foreign-capital subsidiary of
the parent company, is issuing
bonds that mature in 363
days, according to an initial
term sheet for the offering.
The bonds are guaranteed
by Hainan-based HNA Group.
The company didn’t disclose
how much it is hoping to
raise.
The high interest rate indicates investors are becoming
more concerned about HNA’s
leverage and liquidity, and see
significant default risk.
The latest deal comes less
than a week after a separate
unit of HNA sold $300 million
in 364-day debt at a 6.35%
coupon, an offering that drew
tepid investor demand.
GOP Measure, Weaker Than Expected, Hurts Yields
BY DANIEL KRUGER
U.S. government bonds
gained Thursday as investors
assessed the impact of a Republican plan to overhaul the
U.S. tax code.
The yield on
CREDIT
the benchmark
MARKETS 10-year
U.S.
Treasury note
fell to 2.347%,
the lowest close in two weeks,
from 2.378% Wednesday. Bond
yields fall as prices rise.
Bond yields had risen last
week as investors speculated
that Republicans would propose measures that were
stimulative to the economy
and which would lead to significantly larger budget deficits. The plan, as detailed
Thursday, would slice the top
corporate-tax rate to 20%
from 35%.
Many investors, however,
were surprised that the plan
Taxed
The yield on the 10-year Treasury note slipped as Republicans detailed
tax-overhaul plans.
2.38%
2.37
2.36
2.35
2.34
2.33
Nov. 2
Source: Thomson Reuters
left the top bracket for individuals at 39.6%, as they had
expected a lower top rate to
provide more economic stimulus. The proposal also included
curbs on some popular individual deductions, including
THE WALL STREET JOURNAL.
on mortgage interest, which
may restrain growth of the
budget deficit.
“The tax package is a lot
weaker than people expected,”
said Andrew Brenner, head of
global fixed income at Na-
tional Alliance Capital Markets. “They’re trying to get the
out-year deficits down, and
the Treasury market is responding positively.”
Yields were also pushed
lower as U.K. government
bonds rallied after the Bank of
England raised interest rates
for the first time since the financial crisis and as investors
assessed the impact of the
nomination of Federal Reserve
Board governor Jerome Powell
to become the central bank’s
next chairman.
Mr. Powell is viewed by investors as representing a continuation of Fed Chairwoman
Janet Yellen’s gradual approach to raising interest rates
and returning monetary policy
to its precrisis norms.
The market is relieved that
“it’s the Powell Fed and not
the somebody-else Fed,” said
Jim Vogel, head of interestrate strategy at FTN Financial.
Treasury Sets Sales of $160 Billion in Debt
The Treasury Department will
auction $160 billion in securities
next week, comprising $118 billion
in new debt and $42 billion in previously sold debt. Details (all with
minimum denominations of $100):
Monday: $42 billion in 13week bills, a reopening of an issue first sold on Aug. 10, 2017,
maturing Feb. 8, 2018. Cusip
number: 912796NR6.
Also, $36 billion in 26-week
bills, dated Nov. 9, 2017, maturing May 10, 2018. Cusip number:
912796PF0.
Noncompetitive tenders for
both issues must be received by
11 a.m. EST Monday and competitive tenders, by 11:30 a.m.
Tuesday: $20 billion in 52week bills, dated Nov. 9, 2017,
maturing Nov. 8, 2018. Cusip
number: 912796PD5.
Also, $24 billion in three-year
notes, dated Nov. 15, 2017, maturing Nov. 15, 2020. Cusip number: 9128283G3.
Noncompetitive tenders for
the bills must be received by 11
a.m. EST Tuesday and competitive tenders, by 11:30 a.m. For the
three-year notes, they are due by
noon and 1 p.m., respectively.
Wednesday: $23 billion in
10-year notes, dated Nov. 15,
2017, maturing Nov. 15, 2027.
Cusip number: 9128283F5.
Noncompetitive tenders must
be received by noon EST
Wednesday; competitive tenders,
by 1 p.m.
Thursday: $15 billion in 30year bonds, dated Nov. 15, 2017,
maturing Nov. 15, 2047. Cusip
number: 912810RZ3.
Noncompetitive tenders must
be received by noon EST Thursday; competitive tenders, by 1 p.m.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
MARKETS
Rate Increase Batters Pound, U.K. Yields
The British pound slid
sharply and bond yields fell
Thursday after the Bank of
England raised interest rates
for the first time in over a decade but signaled that further
increases weren’t imminent.
The BOE’s rate-setting committee voted 7-2 to raise its
main policy rate to 0.5% from
0.25%.
Market Reactions
The British pound depreciated and government-bond yields fell even as the U.K. tightened monetary policy.
While the U.K. stock market rose, some lenders could be hurt by a slower pace of rate increases.
How many dollars one British pound buys
U.K. gilt yields
$1.34
1.4%
1.3
10 year
1.2
By Christopher
Whittall, Mike Bird
and Riva Gold
1.33
Though widely expected,
the move triggered a sharp
market reaction, spurring
sterling’s biggest one-day drop
against the euro in more than
a year and driving bond yields
lower—shifts that are usually
consistent with expectations
that the central bank won’t
rush to raise interest rates
further.
“The market response to
the U.K. rate increase has been
relief that the bank expects a
very gradual hiking cycle,”
Mike Amey, head of sterling
portfolios at Pacific Investment Management Co., said in
a note.
The pound was down by
1.7% against the euro at €1.121
at the end of the European
trading day. It fell 1.4% on the
day against the dollar in both
Europe and New York sessions
and was trading at $1.3058
late Thursday in New York.
The yield on 10-year U.K.
government debt fell around
0.09 percentage point to
1.26%, according to Tradeweb.
Yields fall as prices rise.
Currencies typically decline
when investors expect interest
rates to remain low, as they
shift their investments toward
those that offer higher yields.
Moves in bond yields tend to
be heavily linked to short-term
interest rates.
In its new statement, the
Bank of England didn’t reiterate its guidance from September that interest rates might
need to rise by more than
1.32
1.1
1.0
0.9
0.8
0.7
1.31
0.6
2 year
0.5
1.30
0.4
Monday
Tuesday
Wednesday
FTSE 100 Index
Thursday
Monday
Share-price performance
7560
Wednesday
Thursday
U.K. consumer-price index
1.0%
3.5%
3.0
0
7540
Tuesday
Royal Bank of Scotland
2.5
2.0
–1.0
7520
1.5
–2.0
7500
1.0
0.5
–3.0
Lloyds Banking Group
7480
–4.0
Mon.
Tues.
Wed.
Thurs.
0
–0.5
Mon.
Tues.
Wed.
Thurs.
2015
Note: £1 = $1.3058 All times GMT
Sources: Thomson Reuters (currencies, gilts, FTSE); FactSet (shares); Office for National Statistics (CPI)
market participants expect.
However, it said its outlook for
inflation and economic activity were broadly similar to its
last projections in August.
“The BOE has displayed
quite a conservative outlook
for the U.K. economy,” said Viraj Patel, foreign-exchange
strategist at ING Bank.
He added that the pound
was more likely to appreciate
than fall from here.
“It doesn’t seem like they’re
giving a ‘one and done’ signal
on interest rates,” Mr. Patel
said. “From my point of view,
I’ll be buying this dip, basically.”
Jordan Rochester, foreignexchange strategist at Nomura, also saw Thursday’s decline in sterling as a shortterm reaction. The U.K.’s
negotiations over its exit from
the European Union are seen
as key across British markets.
“I don’t really think this can
be a new trend in sterling. I
don’t see how the Brexit negotiations can actually get worse
than they were at the October
meeting,” he said.
The pound has been under
pressure since the June 2016
Brexit vote, and analysts believe Britain’s negotiations and
the political uncertainty
around them have held sterling back.
’16
’17
THE WALL STREET JOURNAL.
Many investors believe
those negotiations remain the
pivotal factor, rather than BOE
officials, for whom Brexit has
been key when making their
decisions.
“There’s so much uncertainty around where Brexit negotiations are going,” said Andrew Mulliner, a portfolio
manager at Janus Henderson
Investors. “That’s the dominant driver for U.K. risk at the
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Tax Plan’s Happy Surprises for Investors
Buy the rumor, but don’t
sell the “cut, cut, cut.”
The Republican tax plan
had few surprises for the
market, which has been rising in anticipation of a big
reduction in corporate taxes.
The increases that legislators
proposed to fill the revenue
gap were a mixed bag for
companies, but none serious
enough to rattle investors.
The headline figure in the
Tax Cuts and Jobs Act is a
permanent cut in the corporate tax rate to 20%—higher
than the 15% that President
Donald Trump had pined for,
but the number that most
were expecting.
But this bag of goodies for
corporate America has a few
sour bits too. One is the
slightly higher-than-expected
proposed tax rate of 12% for
a one-time repatriation of
cash held by foreign subsidiaries of U.S. companies. This
mostly affects large multinationals such as Apple, Microsoft and Coca-Cola.
Those cash-rich companies
Creditworthy
Ebitda* to net debt of S&P 500 companies
13
12
11
10
9
8
7
2000
’05
’10
’15
*Earnings before interest, taxes, depreciation and amortization
Source: FactSet
THE WALL STREET JOURNAL.
wouldn’t, on the other hand,
be affected by a wrinkle that
would limit the deductibility
of interest to 30% of a modified measure of cash flow
called earnings before interest, taxes, depreciation and
amortization. It is noteworthy that the market prices of
high-yield bonds barely
moved Thursday. That seems
odd since they tend to be is-
sued by companies that
could get pinched, but it actually makes sense since the
future supply of high-yield
bonds would be reduced,
making the existing crop
scarcer. Looking at the S&P
500 as a whole, interest expense was less than onetenth of Ebitda, so the overall impact of limiting the taxdeductibility of interest
Apple Gets Some Help From iPad, Mac
Amid all of the stunning
numbers Apple usually produces on earnings day, the
most important data point—
future iPhone sales—remains
unclear.
Apple’s fiscal fourth-quarter results Thursday confirmed this year’s iPhone cycle is getting stretched. Unit
sales of the iPhone rose only
3% despite the launch of the
8 and 8 Plus models late in
the quarter. Apple also projected that overall revenue
for the December quarter
would rise 7% to 11% year
over year. That was within
the range projected by analysts who expect rather limited supply of the iPhone X
that hits stores Friday.
So investors hoping for
sure signs of an iPhone “supercycle” still have to wait
Booting Up
Stock and index performance
50%
40
Apple
30
20
S&P 500
10
0
2017
Source: WSJ Market Data Group
awhile. Wall Street expects
growth from the iPhone X to
have a bigger impact on Apple’s results next year. In the
meantime, the company’s
supporting cast is taking a
turn in the spotlight. Unit
sales of the iPad and Mac
jumped 11% and 10%, respectively. Services revenue,
which include Apple’s App
Store and content offerings,
jumped 24% to $7.9 billion
excluding the effect of a onetime adjustment.
That should soothe investors who have been solely focused on the iPhone of late.
And financial performance
remains strong. Operations
generated about $63.6 billion
in cash in the quarter, bringing the company’s total cash
balance to nearly $269 billion—nearly all of which
rests offshore.
That could make Apple a
big beneficiary of the tax
package circulating through
Washington. And at the very
least, it will give investors
something new to ponder
while waiting to see if
iPhone X will make a strong
connection. —Dan Gallagher
would be small.
The corporate tax change
that may have the biggest
short-term impact on the
economy is the immediate
deductibility of capital investments such as factories
and machinery. Currently
companies depreciate these
expenses.
While shares of large-capitalization stocks have done
well recently—particularly
technology giants—they
would benefit less from the
overall cut in the tax rate.
Many already are paying effective tax rates not far
above 20%. Smaller, domestically focused companies tend
to have fewer methods to
shield themselves from high
taxes and benefit more. That
likely explains why, despite
the rally in big tech companies, the S&P 500 has lagged
behind the small-capitalization-focused Russell 2000 index by about 4 percentage
points since the election.
Of course, the entire
stock-market rally can’t be
boiled down to a calculation
about lower taxes and the resulting higher net profit. The
whole package—including
the substantial changes to individual taxes and deductions—is meant to unlock
higher economic growth.
On the corporate side of
the ledger that appears to be
the case as net profits would
rise and more of those profits are likely to be invested
domestically. But the milder
measures on individual taxes
appear to be a missed opportunity to remove distortions
that affect how the American
public saves and invests.
Aside from some tweaks
to tax credits for health expenses, education and mortgage interest, the largest impact would be felt by
residents of high-tax coastal
states.
However the wrangling
over legislation plays out,
the gains from tax reform already are priced into the
market.
—Spencer Jakab
and Ken Brown
moment.”
In stock markets, the FTSE
100 index—which generates
roughly 68% of its revenues
outside the U.K., according to
FactSet—rose 0.9% Thursday,
as many other major developed equity markets declined
and the wider Stoxx Europe
600 index fell 0.5%.
A weaker currency tends to
benefit multinational companies as they translate revenue
from overseas.
Some of the FTSE 100 companies that generate the greatest share of foreign revenues
climbed after the BOE announcement as the pound fell,
with shares of British American Tobacco and pharmaceutical company Shire up 1.6%
and 2%, respectively.
Some analysts remain skeptical, however, that a weaker
currency will continue to support the FTSE 100 index for
much longer.
“A recent return of U.K. inflation and, importantly, the
onset of the first hiking cycle
in 10 years, will likely lead to a
dislocation in the negative relationship between sterling
and U.K. equities,” strategists
at UBS wrote, noting currencylinked inflation can add to
costs and hit local demand.
Smaller companies in the
U.K. showed a more muted reaction to the BOE’s announcement, with the FTSE 250 index
adding just 0.3% and the FTSE
SmallCap index up 0.2%.
Shares of U.K.-focused lenders Royal Bank of Scotland
Group and Lloyds Banking
Group lagged behind despite
gains in their more globally
oriented counterparts, both
falling 1% on Thursday. A
slower pace of interest-rate increases could hurt banks’
lending revenues.
U.K. stocks remain unloved
by international investors last
month. The U.K. was the top
underweight position held by
global fund managers surveyed by Bank of America
Merrill Lynch in October.
WSJ.com/Heard
OVERHEARD
Give and you shall receive?
That seems to be the idea at
Inspire Investing, which just
launched its fourth biblically
driven exchange-traded fund
with a reduced expense ratio,
the Inspire 100 ETF.
Inspire’s three existing exchange-traded funds, all
launched this year, have
racked up $107.2 million in
assets between them. It has
pledged to donate half of its
net profits made on management fees to Christian
causes.
The rapid asset growth is
noteworthy, and may owe
something to mainstream
media coverage of the tiny
firm for the wrong reasons—
policies considered by some
to be outright discriminatory.
In the end, what matters
to many prospective clients is
results and costs. With fees
10 times as high as the
cheapest plain vanilla U.S.
stock ETF, divine intervention
may be needed for winning
results.
AIG Needs Refresher in Insurance Basics
Brian Duperreault’s turnaround job at American International Group will be
harder and take longer than
it first seemed.
AIG reported earnings on
Thursday that fell fall short
of analyst estimates due to
yet another charge on its
property-and-casualty book.
The $3 billion of catastrophic hurricane damages
was expected, but a separate
$836 million increase in reserves for commercial insurance lines wasn’t.
This marks the third year
in a row that AIG has taken a
surprise charge on this business, following a $3.6 billion
increase in reserves in the
fourth quarter of 2015 and a
$5.6 billion charge in the
fourth quarter of 2016.
A reinsurance deal struck
with Berkshire Hathaway
earlier this year was meant
to put a cap on losses from
these troubled commercial
lines, but it covered only U.S.
policies written through
2015. AIG’s charge this time
around relates to business
written in 2016, or outside
the U.S.
Clearly, something went
badly wrong with underwriting practices at AIG. Policies
were underpriced and risks
not properly anticipated.
The good news is that Mr.
Duperreault, who joined in
May after his predecessor
was ousted, seems to recognize the cause of the problem. In a recent post on
LinkedIn, he stressed the
limits of technology and the
continued human role in
judging risks, especially for
the very large companies
that AIG specializes in insuring. In a statement, he said
he would hire new staff to
improve its analysis of risks,
and even declared 2018 to be
the “year of the underwriter” at AIG.
Shareholders and analysts
won’t take him at his word
that the situation will be resolved. Hiring underwriters
and reworking the company’s risk analysis are complicated tasks that will take
time to bear fruit. It won’t
be clear if the new policies
being written are more resilient until they have been in
force for some time.
Mr. Duperreault is probably the right man for this
job. That doesn’t mean it
will be easy or quick.
—Aaron Back
MALIKA FAVRE
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HOMES
|
MARKETS
|
PEOPLE
|
UPKEEP
|
VALUES
|
NEIGHBORHOODS
|
REDOS
|
SALES
THE WALL STREET JOURNAL.
FIXTURES
|
BROKERS
Friday, November 3, 2017 | M1
WHITNEY KAMMAN FOR THE WALL STREET JOURNAL (3)
© 2017 Dow Jones & Company. All Rights Reserved.
|
WIDE-OPEN SKY John Thompson and his fiancée, Cody Goettle, below right, at their $3.5 million contemporary home in Big Sky, Mont. Advances in glass technology make it easier to use large sheets of
glass. The living room, above, has full-height sliding doors that completely open up to the outside deck. The home, below left, is located in a ski and golf community called Spanish Peaks.
SKI & MOUNTAIN HOMES
The Quest
For Transparency
Affluent buyers say the best ski
homes offer wide-open views of
the slopes from the cozy indoors.
BY CECILIE ROHWEDDER
THE TEMPERATURE OUTSIDE was 23-degrees
below zero the day Michael and Shelia Alessandro bought their modern mountain home for
$3.4 million in Wyoming’s Jackson Hole.
The frigid weather briefly gave them pause,
since the five-bedroom, 6,800-square-foot home
had walls of glass—a design that can be less en-
ergy-efficient than insulated walls. Still, the Wilson, Wyo., house, designed by Jackson-based
Dynia Architects, offered sweeping views of the
Teton Range. After the sale closed, the Alessandros installed even more glass in the living room
to further enlarge the view.
Mr. Alessandro says the home is still warm
and cozy, with monthly heating bills averaging
$538 in the 12 months through September. “You
couldn’t have done this 100 years ago,” says Mr.
Alessandro, 74, a retired managing director of
Hambrecht & Quist, a San Francisco-based investment bank now part of J.P. Morgan Chase &
Co. “Glass technology has evolved so that people
can have a house like this. It’s amazing that people still want to build those old-style log cabins.”
Many affluent buyers say that the best ski
homes are ones where you can see the snow and
slopes while staying snug inside. Recent advances
Please turn to page M6
SPEND THE SUMMER IN SKI COUNTRY
INSIDE
More second-home buyers are seeking out ski-resort towns for their summer amenities,
from high-altitude golf courses to outdoor pools and food festivals; using the lift for mountain bikes.
BY KATY MCLAUGHLIN
JUMBO JUNGLE
Don’t get burned by a
credit freeze M8
KIM RAFF FOR THE WALL STREET JOURNAL
WHEN MIKE AND PEGGY
Grubbs first visited Victory
Ranch, a new development
about 10 miles from the ski
slopes of Park City and Deer
Valley in Utah, they immediately put a deposit on a lot.
The location was perfect,
they said, for enjoying everything the season has to offer.
The season in question,
for the Grubbses and a growing number of buyers in
mountain communities, is
summer. While the Grubbses
ski and engage in other winter sports, they get the most
use out of their home in the
summer, when Ms. Grubbs
lives there full time and Mr.
Grubbs visits weekly from
their home in Newport
Beach, Calif.
Mountain towns, ski resorts and developers in
these areas are making a big
push to create more reasons
for people to visit in the
summer. It is part of a several-decades effort to diversify the economy in places
traditionally dependent on
ski revenues. For the real-estate industry, a healthy roster of summer activities can
SLOPE-SIDE STYLE
Luxury ski homes
on the market M10
FAIR WEATHER BUYERS Mike and Peggy Grubbs, at Victory Ranch in Utah, get most use out of their home in the summer.
create value for land that
doesn’t lie at the base of the
slopes.
In some locations—partic-
ularly in California and lowaltitude resorts—there is a
concern that climate change
is gradually eroding the
length of the ski season, and
may eliminate it in some areas by the middle of the century, according to Daniel
Scott, research chair in Climate and Society at the University of Waterloo in OnPlease turn to page M4
BODE MILLER
The skier on growing
up in the wild M12
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M2 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
NY
MANSION
BEVERLY HILLS
ESTATE WITH
MINI TRAINS ASKS
$58.88 MILLION
PRIVATE-EQUITY
EXECUTIVE PAYS
$52 MILLION FOR
NEW YORK HOME
A Beverly Hills, Calif., estate with
a mansion, two guesthouses and
miniature trains that can squire riders around the property is seeking
$58.88 million.
The nearly 1¾-acre property has
a 26,800-square-foot house with
eight bedrooms and 15 bathrooms,
according to listing agent Christophe
Choo of Coldwell Banker Global Luxury. The house includes 12 antique
marble fireplaces imported from
France, Italy and England, and a
two-story wood paneled library with
his-and-hers offices. There is also a
5,000-square-foot master wing on
the second floor, Mr. Choo said.
The grounds include a large lawn,
croquet court, tennis court and pool
with a waterslide and waterfalls.
Both guesthouses have their own
two-car garages.
Train tracks meander through the
property and accommodate both
steam and diesel locomotives, both
rideable and both built to 1/8th the
scale of the real thing.
The sellers are retired real-estate
developer Alan Casden and his wife,
Susan. Mr. Casden said the trains
were inspired in part by his visits to
the railroad museum in Griffith Park.
The trains provided entertainment
for his children’s birthday parties,
Mr. Casden said.
The couple is selling because the
house is “just way too big for us
now,” said Mr. Casden, 70, who
added that he retired last year. They
plan to downsize, he said.
—Katy McLaughlin
Joshua Harris, co-founder of private equity firm Apollo Global Management, has purchased a 100year-old mansion on Manhattan’s
Upper East Side for $52 million.
Though the property first listed
for $72 million in 2016, the sale
still represents the second-highest
price ever paid for a New York City
residential townhouse, according to
agent Paula Del Nunzio of Brown
Harris Stevens. Financier J. Christopher Flowers paid $53 million for
the Harkness mansion in 2006,
setting the current record, according to public records. And earlier
this year, art heir David Wildenstein
sold his Upper East Side town-
PRIVATE PROPERTIES
Dell Technologies founder and
CEO Michael Dell is in contract to
buy an under-construction penthouse
at One Dalton, which will be Boston’s
tallest residential tower when completed, according to people with
knowledge of the deal.
The penthouse is in the Four Seasons Private Residences One Dalton
Street, shown in a rendering above. It
is one of three penthouses, all on the
60th and 61st floors of the building.
One penthouse went into contract for
about $40 million last year, developer
Carpenter & Company said at the
time, and another went on the market in August for $40 million. The
price Mr. Dell has agreed to pay for
the third penthouse isn’t known.
Any one of the units could set a
record price for a Boston condominium. The previous record was set last
year by the $35 million sale of a
penthouse at the city’s Millennium
Tower, according to public records.
The exact size of Mr. Dell’s unit
isn’t known; people familiar with the
building said it is very similar to the
other two penthouses. The penthouse that is on the market for $40
million is expected to be roughly
7,300 square feet with a 570-squarefoot terrace. All of the penthouses
include soaring ceilings and doubleheight terraces with outdoor fireplaces, according to the project’s
website. Residents of the building
will have access to a private resi-
dents’ club, restaurant and lap pool.
The building was designed by
Henry N. Cobb of Pei Cobb Freed &
Partners along with Gary Johnson of
Cambridge Seven Associates. Tracy
Campion of Boston brokerage Campion & Co. is leading sales.
The penthouse wouldn’t be Mr.
Dell’s first big purchase in Boston.
A limited-liability company controlled
by MSD Capital, an investment vehicle controlled by Mr. Dell and his
family, bought a $10.9 million condo
at Millennium Tower last year, records show, following a $60 billion
deal by his company to acquire EMC
Corp., based in Hopkinton, Mass. A
spokesperson for Mr. Dell declined to
comment.
—Katherine Clarke
RECORD TERRITORY: PALM BEACH ESTATE ON THE MARKET FOR $105 MILLION
A massive Palm Beach, Fla., estate
is going on the market for $105 million. If it sells for that price, it would
be one of the most expensive homes
ever sold in the area, according to
data from appraiser Jonathan Miller.
The record price paid for a Palm
Beach property was set in 2012 by
hedge-fund manager Ken Griffin’s
purchase of four adjacent lots on
nearby Blossom Way for about $130
million, Mr. Miller said.
According to listing agent John O.
Pickett of Brown Harris Stevens, the
house is owned by Edward G. Watkins
II and his wife, Karen Watkins. Mr.
Watkins was president and principal
owner of the Simplex Time Recorder
Co. until its $1.15 billion sale to Tyco
International in 2001. Founded in the
late 1800s, Simplex manufactured,
sold and serviced fire-alarm systems,
security systems and time-equipment
products. Mr. Watkins declined to be
interviewed.
The home is located on South
Ocean Boulevard, a street lined with
the vacation houses of business
heavyweights like Blackstone Group
CEO Stephen Schwarzman.
The Watkins bought the more than
2-acre site for just over $21.5 million
in 2001, Mr. Pickett said, and then
tore down the existing house. They
built the 28,399-square-foot home
from scratch, completing it in 2004.
The home was designed by architect
Jeff Smith, with interiors by Bunny
Williams, according to Mr. Pickett.
The interior is configured around a
central courtyard, with two symmetrical wings stretching out from the
main axis. The courtyard has a pool,
landscaped gardens and shaded col-
umned seating areas, according to Mr.
Pickett. Inside, the home features an
imported 18th-century fireplace from
Italy, hand-carved coffered ceilings,
walls clad in carved shell stone and a
two-story winding marble staircase.
There are seven bedrooms, eight full
bathrooms and four half-bathrooms.
The home is in very good condition,
Mr. Pickett said. — Katherine Clarke
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house for $79.5 million to an affiliate of Chinese conglomerate HNA
Holdings Group, records show; that
property is being used for commercial purposes, Ms. Del Nunzio said.
Until recently, the 21,000square-foot Dommerich Mansion
was occupied by the Center for
Specialty Care, an outpatient facility for plastic surgery. The facility
has since closed, and the property
is ready to be returned to its original purpose as a single family
mansion, Ms. Del Nunzio said. The
sellers are the family of James W.
Smith Jr., a plastic surgeon who
bought the property in 1980 and
later converted it to the care facility. They could not be reached for
comment.
Ms. Del Nunzio said Mr. Harris
fell in love with the scale of the
property, which is 44 feet wide and
has seven stories plus a basement
and three elevators. The home was
built in 1917 for Otto Dommerich,
an heir to a cotton empire and one
of Manhattan’s wealthiest men at
the time, according to the listing. It
has 14 marble fireplaces, a staircase
topped with a stained-glass dome
and a rooftop terrace with views
of Park Avenue to the east and
Fifth Avenue and Central Park to
the west. Mr. Harris declined to
comment.
—Katherine Clarke
See more photos of notable
homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com
CLOCKWISE FROM TOP: FOUR SEASONS HOTEL & PRIVATE RESIDENCES (RENDERING); CARY HOROWITZ; GILES BRADFORD; NICK SPRINGETT
Michael Dell Buys
Large Boston Penthouse
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | M3
SKI & MOUNTAIN HOMES
INSIDE STORY
A Home With a Hint of Monastery
A Colorado couple with a passion for Japan and climbing builds a quiet home
BY CANDACE JACKSON
AND
THEN
CARMEL ZUCKER FOR THE WALL STREET JOURNAL (5)
NORIE KIZAKI AND DAVID WOLF
knew just what they wanted for
the house they were building in
Colorado: a home that reflected
Ms. Kizaki’s childhood in a Buddhist monastery in rural Japan,
where her father was a monk.
But they also wanted a light
touch: a relatively modest size and
an exterior that wouldn’t stand out
too much in their Boulder neighborhood, with its mix of 1950s-era
ranch houses and colonial bungalows. “We wanted to incorporate
the stuff we liked about Japanese
houses, but we didn’t want people
to say, ‘turn left at the Japanese
house,’ ” says Mr. Wolf.
The result is a 1,800-squarefoot, two-story, three-bedroom,
2½-bathroom modern minimalist
home. It has a typical gable roof
but with an enameled-steel wrapper that folds onto the flat top
surface. A contemporary porch
swing sits out front. “I think porch
swings feel really neighborly,” says
Mr. Wolf.
The Japanese element is visible,
but subtle. The front door and part
of the facade is shou-sugi-ban cypress, a Japanese charred-wood
technique that preserves the wood.
The home was completed in 2015
at a cost of $750,000 to $800,000.
Ms. Kizaki, a ski and climbing
guide, and Mr. Wolf, an avid
climber who runs a wealth-advisory firm, hired architect E.J.
Meade of Denver- and Boulderbased Arch11 to handle the
design. As it happened,
Mr. Meade was familiar with many of the
principles of Japanese design.
The couple reused the foundation of the original
home they had purchased in 2010 and
torn down. They
bought the 1/3-acre property for about $600,000.
The home’s interior has many
traditional Japanese elements. The
small entry room is inspired by a
traditional genkan, where guests
can slip off their shoes and change
into house slippers.
The main living space is set up
around a tatami room, surrounded
by sliding shoji screen doors. With
no furniture except for the rice
straw mats on the ground, the
couple uses the space for meditation, dining or watching TV on a
set tucked behind a door, along
with silk pillows for sitting. Ms.
Kizaki’s mother sleeps in the tatami room when she visits, using a
trifold Japanese futon.
To fit three bedrooms and two
bathrooms into the 700-squarefoot upper level, Mr. Meade says
they kept hallways and corridors
to a minimum and ceilings high to
create a feeling of space.
Off the master bedroom is a
cantilevered bathroom that holds a
wet room, or Japanese ofuru, with
a shower and a deep Japanese soaking tub. A window placed above the
tub allows a view of
the Flatiron Mountains. “It’s the Japanese sense of a
privileged view of
nature, versus a
wall of windows,”
says Mr. Meade.
The same is true of
a front garden visible
through a pair of low windows in the tatami room.
The home has white oak floors
and white walls throughout. Furniture and decoration are kept to a
minimum, and include a couple of
paintings by friend Craig Muderlak. One, in the kitchen, shows
Mount Yotei, where Ms. Kizaki
spends three months a year as a
backcountry ski guide.
Ms. Kizaki moved to Colorado
about 20 years ago to attend
graduate school at Denver University for international communications. She took up mountain
climbing as a weekend hobby and
soon left a consulting job to pursue guiding full time. Mr. Wolf,
IT
OCCURS
TO
SUBTLE Norie Kizaki and David Wolf,
inset, built a home with subtle Japanese style on the facade, top, and rich
traditions inside, above and below.
WOODWORK The kitchen, left, has a painting of Japan by the couple’s friend
Craig Muderlak. The wood facade and door are made of shou-sugi-ban cypress.
who grew up on the border between Iowa and Illinois, also
moved to Colorado for school,
earning a master’s in business and
a law degree at the University of
Colorado in Boulder.
The two met in 2002 through a
mutual friend with whom they
traveled to Ecuador for a monthlong climbing trip. They married
in 2008 in a ceremony at the monastery where Ms. Kizaki grew up.
They say they were drawn to
the Boulder property by its proximity to the mountains, to Mr.
Wolf’s office downtown, and to a
favorite market. In addition to the
1950s teardown ranch house, the
lot had a 575-square-foot guest
cottage, where they lived during
construction of their home.
Today, they use the second floor
of the cottage as a guest space.
The ground floor also holds their
Volkswagen RV camper, and all
their ski and climbing gear.
A central design element of the
home is the floating staircase of
plate steel and tension wires in the
living room. The room also has big
glass doors that open to a deck
and a large backyard. Outside, is a
lawn, vegetable garden and Concord grape orchard that has been
on the property since the 1950s.
Mr. Wolf also planted Japanese
kabocha squash and, out front,
there is a large rose bush that the
couple liked so much they insisted
Mr. Meade take it into account
when designing the house.
With a baby due early next year,
the two plan to stay put this winter. They have yet to decorate the
nursery, across the hall from a
bedroom used as a home gym.
Mr. Wolf says the Japanese sensibility in their home design is
also related to their passion for
climbing, where “fast and light” is
the name of the game.
“It’s everything you need but
nothing more,” he says.
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THE WALL STREET JOURNAL.
M4 | Friday, November 3, 2017
FROM TOP: KIM RAFF FOR THE WALL STREET JOURNAL (3); REBECCA STUMPF FOR THE WALL STREET JOURNAL (2)
SKI & MOUNTAIN HOMES
NO SNOW HERE Mike and Peggy Grubbs’s cabin, top,
which they plan on selling once their home is completed;
skeet shooting, above; an outdoor area, right.
SPEND SUMMER IN SKI COUNTRY
Continued from page M1
tario, Canada.
By building communities with
facilities such as high-altitude golf
courses, rock-climbing walls, outdoor pools and mountain-biking
paths, and by generating cultural
programming, developers and municipalities are aiming to create
destinations with a raison d’être
beyond snow.
Summer is contributing more to
mountain town economies. Tax revenue this past summer was over
50% higher than it was four years
ago in Telluride and Mountain Village, Colo., according to data collected by Michael Martelon, president of the Telluride Tourism
Board. In Vail, summer tax revenue
in 2016 was 34% higher compared
with the same period four years
prior, according to data provided
by the town of Vail.
“The typical summer buyer in
Vail is from Texas or Florida. They
come for four weeks over the winter season, and then around June
15th or so and they stay until the
kids go back to school,” said Barbara Scrivens of LIV Sotheby’s International Realty.
In warm months, some resorts
convert ski-equipment shops into
bike shops, and use lifts to transport mountain bikers to maintained trails. Others offer zip lines
and alpine slides—long chutes navigated by carts. Many communities
stage film, food, wine or beer festivals and put on elaborate July 4
parades and fireworks. But for
many buyers, an array of sophisticated cultural offerings in a lowkey environment is the real draw.
After years of renting, Bill and
Sudie Kirkman, who live in Fort
Worth, Texas, bought a nearly
4,600-square-foot house in 2011 in
Snowmass Village, Colo., about 8
miles from Aspen.
“If we were only skiers, we
would not have bought this house,”
which has a backyard, said Mr. Kirkman, a 64-year-old attorney. “This
is a summer house.” The Kirkmans
paid $3.75 million for the home, according to public records. Ms. Kirkman stays from late May to mid-October; Mr. Kirkman travels back and
forth, working from a home office
in Snowmass.
This summer, the Kirkmans
hiked a lot, Mr. Kirkman said, and
shopped for fruits, vegetables,
cheese and bread at Aspen’s farmers market. They took in shows by
Maroon 5, Keith Urban and Hall &
Oates, Mr. Kirkman said.
Aspen also hosts a high-profile
food-and-wine festival in the summer, and 400 classical music
events. The Aspen Institute, a think
tank, began hosting the Aspen
Ideas Festival each June in 2005;
this season included presentations
by former U.S. deputy attorney
general Sally Yates and film producer Brian Grazer, among others.
On their first visit to Victory
Ranch, the Grubbses put in a deposit on a $750,000, 1.2-acre lot.
They are now building a 6,700square-foot house that will cost
roughly around $3 million when it
is finished next summer, said Mr.
Grubbs, co-founder of a home
building company. Less than a year
after deciding to buy the lot, the
couple paid $1.6 million for a cabin
on a different lot, which they plan
on selling once their home is com-
SEASONAL LIVING Bill and Sudie Kirkman, of Ft. Worth, Texas, and their
home in Snowmass Village, Colo.; Ms. Kirkman lives here from May to October.
pleted, Ms. Grubbs said.
This summer, Mr. Grubbs and
some family members competed in
a golfing-shooting-fishing contest,
and Ms. Grubbs attended various
sports clinics. They threw a 59th
birthday party for Mr. Grubbs, Ms.
Grubbs said.
Victory Ranch is a 6,700-acre
community that Chicago-based developer Sterling Bay bought in
2012, said Jim Moran, the community’s director of sales. The development includes an 18-hole golf
course, club houses, a shooting facility, mountain-biking trails and a
restaurant. It also offers a lounge
at the base of the town ski lift in
Park City. While residents have a
drink or rest, a valet readies ski
equipment at the foot of the lift or
returns it to Victory Ranch.
In Stowe, Vt., the popularity of
mountain biking and craft beer is
drawing interest in the summer,
said McKee Macdonald of Coldwell
Banker Carlson Real Estate in
Stowe. Two years ago, he sold a
home in Stowe to Peter Harris, a
51-year-old investor who lives with
his wife and three children in
Brookline, Mass.
Mr. Harris said he was considering buying a beach property on
the island of Nantucket but was
turned off by high prices and concerns that the family wouldn’t be
able to use the house much. In
Stowe, the family paid $1 million
for a house with a view of the
Worcester Range mountains and
spent roughly $500,000 renovating. This summer they spent a
month in the home, plus various
weekends. In the winter, they use
the home on weekends for skiing.
Mr. Harris said they were surprised by how full Stowe is in the
summer. “We were waiting just as
long for tables at our favorite restaurants as we did in the winter,”
he said.
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NY
Friday, November 3, 2017 | M4A
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THE WALL STREET JOURNAL.
Friday, November 3, 2017 | M5
MANSION
SPREAD SHEET | ADAM BONISLAWSKI
LEAVING LAS VEGAS
For highincome renters, the odds
of eviction
are higher in
Las Vegas
than in San
Francisco.
A recent report from
rental-listings site Apartment List found that locales
with higher rents, like New
York, Los Angeles and the
Silicon Valley area, have
among the lowest eviction
rates in the country. Some of
the highest rates were found
in more modestly priced
spots like Memphis and Las
Vegas, according to survey
data the company collected
from 8 million users over the
last three years.
The survey found similar
results for renters across the
annual income spectrum. For
instance, higher-income
renters—defined here as
PING ZHU
Cities with the highest eviction rates for high-earning renters
those with incomes above
$60,000—had eviction rates
of 2.9% in Las Vegas and
2.8% in Memphis, cities
where the overall eviction
rates were 5.5% and 6.1%, respectively. Renters in the
same income bracket had
eviction rates of
0.8% in Boston and
0.9% in San Francisco, areas with
Eviction rates among higher-income
renters in selected top U.S. metro areas.
overall eviction
rates of 2% and
HIGHMETRO AREA
OVERALL INCOME
1.6%, respectively.
Las Vegas
5.5%
2.9%
While the metrolevel data used in
Dallas-Fort Worth
5.6%
2.8%
the company’s analMemphis
6.1%
2.8%
ysis could mask
Atlanta
5.7%
2.7%
higher rates of
Phoenix
5.9%
2.6%
renter displacement
in specific rapidly
Miami
3.5%
1.6%
gentrifying neighWashington, D.C.
2.4%
1.4%
borhoods, in general
Chicago
3.1%
1.3%
the numbers indiMinneapolis
3.1%
1.2%
cate that a strong
Los Angeles
1.9%
1.2%
local economy keeps
eviction rates low
New York
2.2%
1.1%
even in the face of
Seattle
2.3%
1.1%
lofty rents, says
Denver
2.5%
1.1%
Christopher Salviati,
San Francisco
1.6%
0.9%
housing economist
Boston
2.0%
0.8%
at Apartment List.
Also possible, he
Exit Strategy
Source: Apartment List
notes, is that tight rental
markets in these cities make
it difficult for borderline
renters to get a lease in the
first place. In these markets,
“Landlords have more discretion in terms of who they are
renting to,” he says. “So if
you are a renter whose history might suggest you would
have more difficulty paying
rent, you would probably
have a harder time even getting your foot in the door.”
Another factor could be
strong tenant protections in
certain high-rent spots like
New York, Mr. Salviati adds.
Real-estate lawyer Steve
Wagner, partner with Manhattan-based firm Wagner
Berkow, recalls a pair of
cases involving high-income
New York clients: “I was able
to keep two different tenants
in their apartments for over
six years without paying
rent.”
He attributes the feat to
both legal acumen and luck,
adding that recent changes
to the city’s housing laws
make such an outcome less
likely today.
KAYA SURVIVED!
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M6 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
SKI & MOUNTAIN HOMES
Friday, November 3, 2017 | M7
SKI & MOUNTAIN HOMES
WARM AND COZY Michael and Shelia Alessandro, top center, bought their modern mountain home for $3.4 million in Wilson, Wyo. Top left, the open-plan kitchen and dining area; top right, the living
room, where the Alessandros added even more glass after they bought the home. Mr. Alessandro says the home, above, is still cozy despite all the windows. Heating bills average $538 a month.
SEE-THROUGH Steve Brint and
Mark Brown’s $3 million, 4,100square-foot house in Aspen, Colo.
The living room has sliding glass
doors that open onto a deck.
“We have 360-degree views,”
says homeowner Tasha Atchison, a
44-year-old mother of two and retired transportation engineer.
“Why ruin that with walls?”
Ms. Atchison and her husband,
Shane, a 44-year-old chief marketing officer of Utah-based software
firm Domo, completed the house in
2012 and now spend weekends and
vacations there with their children,
Keegan, 13, and Frances, 11.
Sitting on 20 acres, the property
is composed of four separate buildings that are placed to frame views
of the valley, Pearrygin Lake and the
Studhorse Ridge. The separate
structures, built like pioneer wagons
circling a campfire, give those inside
DAVID O. MARLOW (2)
Continued from page M1
in glassmaking and engineering
mean homes can have larger panes
of architectural glass with higher
levels of insulation. Two or three
panes, with sophisticated coatings
and argon gas between layers to
displace cold air, allow homeowners
to manage extreme climates without inflated utility bills. Extra-clear
glass, low in iron, eliminates the
green tint that thick glass had in
the past. For safety, glass is laminated like car windshields. To manage sunlight, it comes in versions
that darken like sunglasses, either
automatically or at the flick of a
switch. In contemporary mountain
homes, windows have narrow steel,
aluminum or fiberglass frames.
“The goal is for the window
frame to go away,” says Alan Pickett, resident architect at Pella
Corp., a window and door manufacturer in Pella, Iowa. “Clients want
more glass, less frame, less wall.”
Such transparency can be costly.
At Agnora, a company in Collingwood, Ontario, that makes large architectural glass, prices rise with
the size of the panel and level of insulation. Double-pane, high-performance glass with low emissivity
and argon gas costs three times as
much as single-pane glass. Triplepane, triple-coated glass with argon
costs more than five times as much.
“In mountain areas, almost all
houses have double-pane glass,
some have triple-pane,” says Richard Wilson, Agnora’s founder and
president. Some homeowners reduce building costs by using premium glass on the main panoramic
windows and less-expensive varieties in less-prominent spaces.
Others opt for smaller, more affordable window panes with a grid
of muntins, even though it interferes with the view.
Architect Tom Kundig designed a
nearly translucent retreat in Washington’s remote Methow Valley. The
communal area of the 3,200square-foot, four-bedroom compound near Winthrop, Wash., has
glass on three sides. Walls open up,
further blurring the boundaries between inside and outside.
DAVID AGNELLO FOR THE WALL STREET JOURNAL (4)
SKI HOMES SEEK FULL TRANSPARENCY
a closer connection to the landscape
than one larger house would, says
Mr. Kundig, owner and design principal at Seattle-based architectural
firm Olson Kundig. Public spaces,
such as the living, dining and
kitchen areas, are in one building;
private spaces, including the master
bedroom, children’s room and den
are a short walk away in another.
One challenge homeowners face
with contemporary mountain
homes: making them look cozy. To
offset the stark look of glass, steel
and straight lines, they ask for
earthy, textured materials for nonglass walls, as well as soft fabrics
and warm colors for furnishings. At
the Atchisons’ house, Olson Kundig
designed a small kitchen area with
a low ceiling made of reclaimed
barnwood. Living-room armchairs
are upholstered in homey tartan.
Red dining chairs provide a pop of
color to the industrial black, brown
and gray. Floors are made of
brushed concrete that “really
grounds you,” says Ms. Atchison.
At John Thompson’s contemporary home in Big Sky, Mont., the
living room walls are full-height
sliding doors that completely open
up to the outside deck. Glass walls
on the sides make the view even
larger. Floor-to-ceiling windows in
the master bedroom create a sense
of immersion in the outdoors.
“When you’re in the house, it
feels like you are in nature,” says
Mr. Thompson, who sells real estate at Big Sky’s Yellowstone Club
and completed his house at Spanish Peaks, a nearby ski and golf
community, in 2015. “You just get
lost in the view.”
The home uses highly insulated,
triple-pane performance glass that
keeps out both cold and heat from
the sun and fends off ultraviolet
rays. And it is clear enough to make
Mr. Thompson and his fiancée, Cody
Goettle, feel one with the landscape.
Ms. Goettle, a kinesiologist and
recent graduate of Montana State
University, and Mr. Thompson, who
has traveled extensively in Australia,
say the house was inspired by that
country’s contemporary coastal architecture, with clean lines, natural
materials and emphasis on views.
“Glass technology is changing
quickly,” says Reid Smith, a Bozeman, Mont., architect who designed the $3.5 million house.
“There is a world of innovation
out there that is making it easier
to use those large sheets of glass.”
At Steve Brint and Mark
Brown’s 4,100-square-foot house
on the Roaring Fork River in Aspen, Colo., visitors are greeted by
a shimmering, two-story glass wall
exposing a floating staircase. Next
to it is a glass front door that
opens a view through a corridor,
to pine trees behind.
The living room has sliding
glass doors that open to a 900square-foot deck with a glass railing. The master suite also has
floor-to-ceiling windows. For Mr.
Brint, 71, the main goal in building
the modern-mountain house was a
seamless transition to the outdoors. At the same time, Mr. Brint
and his husband, 65-year-old Mr.
Brown, wanted the four-bedroom
home to feel warm and welcoming.
To create that sense of sense of
comfort, Aspen-based architect
Charles Cunniffe matched the glass
with textured sandstone walls. The
roof has wide eaves that shade
outdoor living space. And he designed a lighting system that creates a warm atmosphere and prevents the glass panes from
becoming large mirrors at night.
The glass itself is highly insulated,
preserving the heat in Colorado’s
cold winters.
“We can enjoy the view of the
snow without feeling the cold of
the snow,” says Mr. Brint, a retired
ophthalmologist.
With Mr. Brown, a retired accountant, Mr. Brint is in Aspen six
weeks in the winter and four
months in the summer, which the
pair spends hiking, biking and
horseback riding. They spent around
$600 per square foot building the
house—around $3 million, including
outdoor space and garage—and
moved in 2015. Mr. Cunniffe, the architect, says the more glass there is
on a house, the more expensive it
is—and modern mountain architecture needs a lot of it.
“The clients that contact us are
usually looking for a maximum
amount of nature and minimal
separation between them and nature,” he says. “As much glass as
possible—that’s our No. 1 request.”
Our Reality
in Waiting
From defeating superbugs and hurricanes to understanding the
Bitcoin enigma, season 2 of The Future of Everything series explores
the challenges and possibilities of our impending way of life.
ApplePodcasts.com/FOE
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THE WALL STREET JOURNAL.
M8 | Friday, November 3, 2017
MANSION
JUMBO JUNGLE | ROBYN A. FRIEDMAN
DON’T GET BURNED BY A CREDIT FREEZE
CHRIS GASH
If you put a freeze on your credit and then apply for a mortgage, you will need to allow the lender access to your report
Baby, it’s
cold outside.
With
Equifax and
other companies reporting
massive data breaches this
year, more consumers are
putting a freeze on their
credit reports. And while a
credit freeze won’t affect a
borrower’s ability to qualify
for a mortgage, it does require the borrower to take
additional steps during the
application process.
A credit freeze blocks anyone—including lenders and
employers—from accessing
your credit report. Requests
for a credit freeze must be
submitted by mail, online or
over the phone to the three
major credit bureaus individually (Equifax, TransUnion
and Experian). You’ll need to
provide your name, address,
date of birth and Social Security number. The fees vary
by state but run from free to
$10 each time you place or
lift the freeze, and payments
can be made using a personal check, money order or
credit card. (Fees may be
waived for victims of identity theft.)
Once placed, a credit
freeze stays on your credit report until you lift or remove
it. But remember: It can affect your ability to get a new
cellphone, apply for a store
credit card or even get a job.
And existing creditors or debt
collectors acting on their behalf will still have access.
“Freezing your credit can
prevent others from opening
new lines of credit in your
name, but it also prevents
you from opening an account
yourself,” says Sam Mischner, chief sales officer and
head of mortgage at Charlotte, N.C.-based LendingTree. “If you’ve instituted a
freeze on your credit but
now want to apply for a
loan, you will need to take
the extra step of allowing
the lender access to your
credit. You will have to contact each credit bureau to
temporarily lift the freeze.”
For borrowers applying
for a mortgage, that freeze
will probably only have to be
lifted once, because the
credit report would be good
for the typical 30- to 45-day
period from contract to closing, says Josh Moffitt,
founder and president of Silverton Mortgage Specialists,
a direct-mortgage lender in
Atlanta. But there are certain
situations where another report needs to be pulled by
the lender nearer to the closing. In that case, the borrower may have to lift the
freeze—and pay for it—multiple times.
In addition, borrowers
might run into problems in
competitive housing markets
where they need to close
quickly. In those instances, it
might be tricky to unfreeze
the credit in time for the
lender to pull credit reports
and complete the underwriting and pre-closing process.
Here are a few considerations if you’re applying for
a mortgage with frozen
credit.
• Watch yourself. While
freezing your credit protects
you from the time the freeze
becomes effective, it does
nothing to correct existing
credit issues. Get a copy of
your credit report from each
of the three reporting agencies, check them carefully
and correct any errors before
you apply for a mortgage.
• Get alerts. While a
credit freeze “locks down”
your credit, a fraud alert still
allows creditors to pull your
credit report as long as they
verify your identity first, according to the Federal Trade
Commission. For example, a
business may call you to verify that you are the person
requesting new credit. However, while fraud alerts may
make it more difficult for
others to open new credit
accounts in your name, they
may not prevent misuse of
your existing accounts. Placing a fraud alert is easier
than with a freeze. You need
only to contact one of the reporting agencies, which in
turn is required to notify the
others. A fraud alert is free.
• Know how the freeze
works. Understand the logistics of lifting the freeze—and
make sure you allow enough
time for the lender to pull
credit reports. Consumers
who deal directly with the
three credit-reporting agencies are given a personal
identification number to provide, either by phone, online
or mail, every time they
want to lift or remove the
freeze, according to David M.
Blumberg, a spokesman for
TransUnion. Alternatively,
consumers can lock or unlock their credit using a
third-party service like
TransUnion’s TrueIdentity,
which is available online or
in an app.
Here is contact information for fraud and identitytheft issues.
Equifax: 888-349-9960,
www.equifax.com
Experian: 888-397-3742,
www.experian.com
TransUnion: 888-909-8872
www.transunion.com
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HEBER VALLEY, UTAH - PARK CITY
DOWNTOWN ST. PETERSBURG FLORIDA
One Of The Last Buildable Lots In JI, this pristine 2.36± acre homesite
offers 188’ water frontage, unmatched views & deep water river access.
Located in the most renowned club community on the east coast offering
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courts, pickleball, squash & a spectacular oceanfront Beach Club.
Overlooking the Jack Nicklaus Signature course (Golf Magazine’s
“Best New Private” in 2009), 2215 Signal Peak Court is a luxurious 6,333 sf
home with 5 BRs. As the most successful private community in the Park City
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Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3
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From the $800’s to $900’s
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John’s Island Real Estate Company
Red Ledges Realty
Chris Beardsley
phone: 772.231.0900
phone: 877.733.5334
email: wj@johnsislandrealestate.com
www.RegentLane.com
NJR Property Investments LLC
info@RedLedges.com
phone: 727.515.5556 email: natalie@njrdevelopment.com
NEWPORT, RHODE ISLAND - CASA DEL SOLE
KIAWAH ISLAND, SOUTH CAROLINA
GREAT LIFESTYLE IN NAPLES, FLORIDA
Stunning Palladian-style villa, originally built in early 20th century,
completely renovated with state-of-the-art systems. Set on almost two
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with dramatic entry hall and grand staircase balanced by separate formal
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balconies, chef’s kitchen, and neoclassical pool with patio and firepit.
Nestled in a highly walkable, gated community with a dock, kayak
launch, pool, and curving lane of new coastal Lowcountry homes, the newly
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an open floor plan filled with natural light. A Kiawah Island Club Membership
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Live the lifestyle of your dreams in Naples, Florida! Gorgeous singlefamily residences up to 4,879 a/c sq. ft. Amazing six-acre recreation area
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$4,395,000
$1,548,000
From the $400’s to the $700’s
GustaveWhite.com
kiawahisland.com/real-estate
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phone: 401.849.3000
phone: 866.312.1780
info@kiawahisland.com
To Advertise Call: 800-366-3975
GL HOMES
phone: 800.281.9239
www.glhomes.com
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | M9
NY
North Palm Beach, Fl | $11,400,000
North Palm Beach, Fl | $9,975,000
Purchase, NY | $9,950,000
orleaNs, caPe cod, ma | $9,950,000
JohNs IslaNd, sc | $8,875,000
WEB ID: QTTQ4
WEB ID: QVPV4
WEB ID: FEDV4
WEB ID: ALXB4
WEB ID: MEHQ4
Unmatched views, deep water dockage, 120’ Contemporary masterpiece w/ endless water Built-for-entertaining estate on 7.23 acres
frontage. Once in a lifetime opportunity.
views/dock; 11,071 total sf on one+ acres.
with unrivaled sports complex.
Lost Tree Realty
Lost Tree Realty
Houlihan Lawrence
Magnificent 4.4 acre Pleasant Bay waterfront One of the great early Georgian homes –
estate w/private beach, boathouse, pool.
52-acre plantation. 7 miles from Charleston.
Robert Paul Properties
Carriage Properties
Peter Erdmann — 561.329.2383
Denice Sexton — 561.662.8344
Pollena Forsman — 914.420.8665
R. Kinlin / F. Schofield — 508.648.2739
Thomas Bennett — 843.906.0247
Falmouth, caPe cod, ma | $8,400,000
ostervIlle, caPe cod, ma | $6,900,000
ostervIlle, caPe cod, ma | $6,495,000
Palm Beach, Fl | $5,500,000
chIcago, Il | $4,925,000
WEB ID: CPZD4
WEB ID: HCAW4
WEB ID: KNSB4
WEB ID: XFDD4
WEB ID: OKRD4
Quaint waterfront living on Chapoquoit
Exclusive waterfront residence in Oyster
Beachfront on Nantucket Sound with sweepIsland with assoc docks, beaches and tennis. Harbors w/ inground pool & deep water dock. ing views, spacious well-appointed interior.
Robert Paul Properties
Robert Paul Properties
Robert Paul Properties
AD Editor’s Selection – Timeless masterpiece –
Corner top floor – Intracoastal, city views.
Illustrated Properties-Luxury Collection
Iconic Park Tower. 4,200sf. Chef’s kitchen.
Sumptuous master suite overlooking lake.
Baird & Warner
R. Kinlin/B.Hussey — 508.648.2739
Robert Kinlin — 508.648.2739
Paul Grover — 508.364.3500
Shelly Newman — 612.860.4599
Sharon Glickman — 312.758.0718
savaNNah, ga | $4,500,000
North Palm Beach, Fl | $4,299,000
hIltoN head, sc | PrIce uPoN request ostervIlle, caPe cod, ma | $3,999,000
chIcago, Il | $3,995,000
WEB ID: LIBJ4
WEB ID: LUVC4
WEB ID: VEEJ4
WEB ID: RBUB4
WEB ID: AJJD4
C.1847 family compound,dockhouse,porches/ Contemporary 5 BR Smart Home, ocean
historic appointments, stunning & glamorus.
access, 1-acre lot, first class details.
Cora Bett Thomas Realty & Associates
Lost Tree Realty
MidCentury Sea Pines OceanFront, orig
floorplan, excellent condition, lg lot, pool.
Cora Bett Thomas Realty & Associates
Estate style residence with beautiful water
views, in-ground pool and private dock.
Robert Paul Properties
Classic recently renovated Georgian home has
open floor plan & 2-car garage w/deck.
Baird & Warner
Cora Bett Thomas — 912.313.4200
Peter Erdmann — 561.329.2383
Cora Bett Thomas — 912.313.4200
Robert Kinlin — 508.648.2739
Jane Shawkey-Nye — 312.504.5055
sarasota, Fl | $3,600,000
e. Falmouth, caPe cod, ma | $3,195,000 vaNcouver, Wa | $2,888,600
North Palm Beach, Fl | $2,495,000
savaNNah, ga | $2,450,000
WEB ID: LJTD4
WEB ID: ENYQ4
WEB ID: VWVD4
WEB ID: ICJQ4
WEB ID: COHD4
The Ritz-Carlton Residences, Sarasota
offers unrivaled views & services.
Michael Saunders & Company
Waterfront with incredible views and a substantial dock on Green Pond, Assoc beach.
Robert Paul Properties
Stately Georgian home. South facing “Sum Light filled 4BR 4BA garden home with pool 6,000+ sqft. estate/deep water, gated, pool,
of 10” Feng Shui with Columbia River views. in prestigious gated golf community.
guest quarters, private dock, sunsets.
Hasson Company Realtors
Lost Tree Realty
Cora Bett Thomas Realty & Associates
Julia DeCastro — 941.702.2300
R. Kinlin/B. Hussey — 508.648.2739
Steve Studley — 360.606.8816
Peter Erdmann — 561.329.2383
Bradford Moody — 912.844.4663
xypfi.
mequoN, WI | $2,147,000
savaNNah, ga | $1,750,000
hudsoN valleY, NY | $1,395,000
North Palm Beach, Fl | $1,395,000
tequesta, Fl | $1,275,000
WEB ID: BHFD4
WEB ID: RZQD4
WEB ID: GTWJ4
WEB ID: HKYU4
WEB ID: PTTQ4
Classic style, beautiful sunrises and
breathtaking views of Lake Michigan.
Shorewest, REALTORS®
Sophisticated, contemporary design,
marshfront, abundant light, 3 beds/baths.
Cora Bett Thomas Realty & Associates
Stunning legacy compound: 3 dazzling homes 2 BR Water Club Condo 20th fl. South Tower. 4BR 5½BA Villa in prestigious Jupiter Hills
+ pond on 17 private acres near Reservoir.
Spectacular water views, dock available.
Village. Large pool, screened lanai.
Westwood Metes & Bounds Realty
Lost Tree Realty
Lost Tree Realty
Bridget Behrens — 414.339.7685
Cora Bett Thomas — 912.313.4200
Hayes Clement — 917.568.5226
Denice Sexton — 561.662.8344
Denice Sexton — 561.662.8344
Follow us on:
sarasota, Fl | $1,229,000
savaNNah, ga | $1,100,000
rIchmoNd, va | $998,000
hudsoN valleY, NY | $829,000
WEB ID: VXOD4
WEB ID: NTHC4
WEB ID: KMYD4
WEB ID: BXGC4
The Mark offers a walkable, luxurious urban
lifestyle in downtown Sarasota.
Michael Saunders & Company
Historic Dist - restored 12’ ceilings, 7 frplcs,
crtyard, side porches, hardwoods.
Cora Bett Thomas Realty & Associates
Reminiscent of the Cotswold in England
and nestled on 7.42 acres of land.
Long & Foster® Real Estate, Inc.
Modern-art masterpiece on 24 acres, host to
B-52s’ “Love Shack.” 90 minutes from UWS.
Westwood Metes & Bounds Realty
Georgia Kopelousos — 941.234.4323
Bradford Moody — 912.844.4663
Sylvia Burch — 804.301.5952
Hayes Clement — 917.568.5226
LUXURY HOMES FROM
© 2017 Luxury Portfolio International.® Offering is subject to errors, omissions, change of price, or withdrawal without notice. All information considered reliable; however, it has been supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
M10 | Friday, November 3, 2017
THE WALL STREET JOURNAL.
* *
SKI & MOUNTAIN HOMES
RELATIVE VALUES
LUXURY HOMES MADE FOR THE SLOPES
GIBEON PHOTOGRAPHY
MICHAEL BRANDS (LEFT); DEER VALLEY REAL ESTATE GUIDE
Properties for sale in Colorado, Utah and Wyoming that were built for skiing enthusiasts
$50 million
$17.9 million
$16.95 million
Aspen, Colo.
Seven bedrooms, seven full bathrooms, three half-baths
Park City, Utah
Nine bedrooms, 15 bathrooms
Jackson Hole, Wyo.
Four bedrooms, six bathrooms
This 15,664-square-foot, ski-in/ski-out home was built in 2006 on
60 acres. The main home has a theater, pub and wine room, and
is on a private ski run. An outdoor area has a heated dining area,
fireplace and sunken hot tub. A caretaker home has another three
bedrooms and three baths. The property also has a 7,500-squarefoot barn with heated vehicle-care center. Agents: Eric Cohen and
Craig Morris, Aspen Snowmass/Sotheby’s International Realty
This Park City ski-in/ski-out contemporary home has views of the
mountains and forest, and sits between Boogeyman and Pipe
Dream ski runs at Park City Resort. The home, built in 2011, has a
heated saltwater pool, fireplace, indoor grill and sliding walls.
There are 14 fireplaces and 272 windows. A three-bedroom, fourbath guesthouse is connected to the main house by a walkway.
Agent: Erik Asarian, KW Park City Keller Williams
This 7,302-square-foot home, built in 2016, is a cross-country ski
property on 35 acres. Floor-to-ceiling sliding glass walls connect
the outside. It has two wings with guest suites. The owner’s level
has an office, library, and master suite with his-and-hers baths.
There are fishing tributaries, and horse and cross-country trails.
Agent: David A. NeVille, Jackson Hole Real Estate Associates
—Stacey Altherr
ADVERTISEMENT
Distinctive Properties & Estates
To advertise: 800-366-3975 or WSJ.com/classifieds
FLORIDA
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MULTI STATE OFFERINGS
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(800) 366-3975
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All Rights Reserved.
THE WALL STREET JOURNAL.
Friday, November 3, 2017 | M11
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THE WALL STREET JOURNAL.
M12 | Friday, November 3, 2017
SKI & MOUNTAIN HOMES
HOUSE CALL | BODE MILLER
The ‘Naked Boy’ From the Woods
The former Olympic skier grew up in a wilderness home; today, golfing in Orange County, Calif.
My parents built our home
themselves, a mile’s hike from the
nearest road. From the start, I had
a lot of freedom and spent much
of my time on my own figuring
how the world around me worked.
I come from a long line of pioneering types. My grandparents
met near Lake Tahoe just after
World War II. My grandmother,
Peg, was a ski bunny there, and
my grandfather, Jack, was on leave
from the Navy.
After they married in the late
1940s, he convinced her to move
to the White Mountains to start a
ski lodge. He didn’t have to ask
twice. My grandmother was brash
and an adventurous, fast-driving,
gambling type. My grandfather
was more introverted, but he had
a dynamic personality.
When they settled in New
Hampshire in the late 1940s, the
White Mountains Region wasn’t
very populated. They bought a
farmhouse on 150 acres in Easton.
By the early ’50s, they started
Tamarack Ski Lodge, and in 1962
they opened a tennis camp.
My love of sports came from my
time spent at that tennis camp in
the 1980s. Every summer, a large
number of kids stayed there. I
didn’t wear much, and everyone
knew me as “the naked boy.”
My mother’s brother Mike also
was a big influence. He had been a
professional skier. He appreciated
EDGE Bode Miller, left, competing in
Switzerland, 2014; below, with media
in Austria in January; bottom, at
about 3 at his New Hampshire home.
FROM TOP: ALEXIS BOICHARD/AGENCE ZOOM/GETTY IMAGES; JURE MAKOVEC/AFP/GETTY IMAGES; BODE MILLER
My childhood was
pretty unorthodox. I
grew up in the woods
of Franconia, N.H.,
next to the White
Mountain National
Forest. The wilderness
was my playground.
that I shared his passion for sports.
My family first took me skiing
when I was 2. From the start, the
sport felt natural. I was middle-ofthe-road, but I tried harder than
everyone else and I took more risks
and managed them differently.
My father’s family was from
Burlington, Vt. His father was a
surgeon, and his two brothers
were doctors. My dad, Woody, was
a gifted athlete and loved to play
tennis. He played in a few tournaments at Tamarack and liked beating my mother’s younger brothers.
At first, my mother, Jo, moved
to Burlington to join him while he
was in med school. But after they
married, he dropped out against
the wishes of his parents, and they
moved to Tamarack.
One day, while picking raspberries on a hike, my parents came to
a clearing on a rugged corner of my
grandparents’ property. With the help of
family and friends,
they built a house using the trees they had
cut down to clear the
site. After I was born
in 1977, they built a
three-story addition.
Our house was too
far off the grid for
electricity and phone
lines. So we had two
wood stoves, and our bathroom
was an outhouse on the other side
of a stream. Crossing that stream
at night and weathering the winters bred self-sufficiency and independence. We had a utilitarian lifestyle, and that’s all I knew.
My father didn’t have a fixed
occupation. He and my mom made
maple syrup and sold it in town.
Over time, all of those struggles—
building a house, trying
to make ends meet—took
a toll on their marriage.
They separated when I
was 6, and I wasn’t
happy when my father
left. The years that followed were tough. My mother
made crafts to sell. Her largest annual income was about $20,000.
When I was 8, she moved me,
my older sister Kyla, my younger
sister Wren and our little brother
Chelone down to my grandmother’s old house. My grandmother had built a smaller house
for herself on the property.
My grandmother was a huge
REMARKABLE. STRIKING. ELEGANT.
AND THAT’S JUST THE BATHROOM.
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part of my life. When we watched
the 1984 Winter Olympics together
on TV, I asked her how the skiers
learned to do what they were doing. She told me they were born
just like me, but they had the
drive and the right opportunity
and stuck with it. She helped me
understand what it took to be
great.
Today, my wife, Morgan, and I
live with our four children in Orange County, Calif., near a national
park and mountains. We recently
had a house on 11 acres
on a hill, but it was too
large for us.
Now we live in a whiteand-redbrick, 5,000square-foot Cape Cod.
The five-bedroom house
is near a golf course. I
love golf—not because I
like hitting the ball. I just
love being outside.
Living in a warm climate isn’t a problem for
me. I had enough of the
snow, and I’m done with
professional skiing.
When I was little, my brother,
Chelone, and I used to hunt in the
wilderness for rock crystals by going through rockslides. I keep a
few of those rocks in my office.
Chelone died in 2013 of a seizure,
and the rocks are important to me.
They remind me of my childhood.
—As told to Marc Myers
Bode Miller, 40, is a former Olympic alpine ski racer and winner of
six Olympic medals, including a
gold. He will be a commentator
for NBC during the Winter Games
in February.
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