close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal November 13 2017

код для вставкиСкачать
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
ADVERTISEMENT
RETIREMENT IS YEARS AWAY
BUT YOU CAN FEEL BETTER NOW.
Our Financial Consultants are here to help you plan. Flip to page R12 to learn more.
MONDAY, NOVEMBER 13, 2017 ~ VOL. CCLXX NO. 114
* * * * *
Last week: DJIA 23422.21 g 116.98 0.5%
NASDAQ 6750.94 g 0.2%
STOXX 600 388.69 g 1.9%
10-YR. TREASURY yield 2.397%
HHHH $4.00
WSJ.com
OIL $56.74 À $1.10
EURO $1.1665
GE Sets
Focus on
Three
Key Units
On the Seventh Day, a Small-Town Church Became a Monument
What’s
News
Business & Finance
E’s new CEO plans to
unveil a road map for
the conglomerate that will
focus on three of its biggest business lines, but
stops short of a more radical restructuring. A1
G
Brookfield made a $14.8
billion offer to acquire the
shares of GGP that it
doesn’t already own. B1
Wal-Mart wants to
charge more for some of
its products online than
they cost in stores. B1
General Electric Co.’s new
leader plans to unveil a road
map Monday for the conglomerate that will focus on three
of its biggest business lines,
but stops short of a breakup
or more radical restructuring
of the 125-year-old giant.
Chief Executive John Flannery, who has been conducting
a strategic review since he
took over on Aug. 1, is expected to focus on GE’s aviation, power and health-care divisions, one person familiar
with the matter said. The CEO
will look to exit most of the
rest of its operations.
GE would be pulling back
from its transportation unit,
one of the oldest and biggest
makers of diesel locomotives,
as well as GE Lighting, which
traces its roots to Thomas Edison and makes LED bulbs and
energy management sensors.
While the three divisions
will be the core of GE, Mr. Flannery is expected to stress at a
meeting Monday with investors
and analysts that he will regularly evaluate all of the comPlease see GE page A2
REMEMBRANCE: A week after a gunman slaughtered worshipers at the First Baptist Church in Sutherland Springs, Texas, flowers were
placed in a fence outside the church, which reopened Sunday as a memorial to the 26 victims. A3
BY RICHARD RUBIN
Orbital launched a civilian cargo capsule into
orbit, the second successful flight of the redesigned
Antares rocket. B3
Trump’s financial regulatory team is sounding a
friendlier tone for banks
than its predecessor, which
restricted the industry following the 2008 bailouts. B6
World-Wide
Trump said he had full
confidence in the U.S. intelligence agencies and indicated
he believed their report that
concluded Russia meddled in
the 2016 election. A4
After the Texas church
shooting, some congregations are considering
whether to protect themselves by bringing firearms
into houses of worship. A3
Lebanon’s Hariri said he
will return to Beirut within
days, after his de-facto exile
in Saudi Arabia amid tensions
between Riyadh and Iran. A6
White House officials
said they didn’t have
enough information to
judge whether Moore
should withdraw from the
Senate race over allegations
of sexual misconduct. A4
Iraqi forces wasted no
time erasing the legacy of
three years of Kurdish rule
in Zumar, replacing pictures
and defacing murals. A6
A 7.2 magnitude earthquake jolted the region between Iraq and Iran, killing at least 140. A6
China’s Xi is exhorting
state media to do more to
portray the nation as a
builder of global peace. A8
An election at the U.S.
Catholic bishops conference
is seen as a test of support
for Pope Francis. A3
Markets Digest..... B8
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News............. A2-4
Weather Watch.. A14
World News..... A6,8-9
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
BY THOMAS GRYTA
GOP Bets on a Simpler Tax Code
A rally that has sent
stock indexes around the
world to records showed
signs of stalling, with the
Dow posting its worst
week since September. B1
CONTENTS
Business & Fin... B2-3
Crossword.............. A14
Heard on Street... B11
Journal Report.. R1-12
Life & Arts....... A11-13
Markets............. B10-11
New CEO’s plans
stick to health care,
power and aviation,
stop short of breakup
ERIC GAY/ASSOCIATED PRESS
Uber cleared the way
for a multibillion-dollar investment led by SoftBank,
giving the company a powerful ally in its battle
against global rivals. A1
The ride-hailing company has no way to raise
drivers’ hourly wages, despite fluctuating fare
prices, a study found. B3
YEN 113.54
WASHINGTON—As Republicans move forward on their
tax bills this week, part of
their pitch is that 9 in 10
Americans would ultimately be
able to file returns the size of
postcards. While the plans
don’t make tax filing quite that
easy, they do mark a step toward a simpler system.
The GOP plans would repeal
the alternative minimum tax, a
parallel tax system affecting
more than four million households.
The
House
bill
would consolidate a tangle of
tax breaks for higher education.
Both plans would remove—temporarily—thorny depreciation
rules. Narrow deductions for
tax-preparation fees, teachers’
out-of-pocket expenses and
A Mall Owner Goes Shopping
Brookfield Property has made a $14.8 billion offer to buy the
shares of mall owner GGP, formerly General Growth Properties,
that it doesn’t already own, say people familiar with the matter. B1
52-week share performance
moving costs would vanish under the House plan, removing
lines from tax forms and pages
from Internal Revenue Service
publications.
The full House and a Senate committee are each expected to vote this week on the
competing plans, as Republicans push to have a tax bill
signed into law by year-end.
Simplification is part of the
GOP’s promise to voters, but
for many filers, a simpler tax
code without the breaks they
use the most could leave them
paying more.
Still, “on simplification, it’s
Please see TAXES page A4
White House holds back on
Senate candidate Moore..... A4
The Daily Shot: Tax plans
tweak American dream...... B11
China-Made Security Cameras
Are Hanging All Over the U.S.
Brookfield Property Partners
20%
Company with ties to government sparks cybersecurity concerns
10
The Memphis police use the surveillance
cameras to scan the streets for crime. The
U.S. Army uses them to monitor a base in
Missouri. Consumer models hang in homes
and businesses across the country. At one
0
–10
By Dan Strumpf,
Natasha Khan
and Charles Rollet
–20
GGP
–30
2016
’17
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
Uber Ends Board Spat,
Sets Up Softbank Deal
BY GREG BENSINGER
Uber Technologies Inc.
cleared the way for a multibillion-dollar investment led by
SoftBank Group Corp. that
will transform the corporate
structure of the world’s most
valuable startup and give the
ride-hailing company a powerful ally in its battle against
global rivals.
The deal, confirmed Sunday by Uber, took shape after
former Chief Executive Travis
Kalanick and a major investor,
Benchmark, reached agreement over control of board
seats, including putting on
hold a lawsuit against the former chief, according to people
familiar with the matter. The
two sides appeared to be at
an impasse just days ago.
Once completed, the deal
will add six directors and introduce voting changes that
will effectively limit Mr. Kalanick’s power on the board,
the people said. It also brings
Uber needed stability after a
year of turbulence: The San
Francisco-based company is
still grappling with the fallout
from a former software engineer’s charges of sexual harassment, among other scandals that led a group of
investors to push out Mr. Kalanick in June.
An investment by SoftBank
also represents an early win
for new CEO Dara Khosrowshahi. He is working to overhaul Uber’s workplace culture
while also battling regulators
from Brazil to the United
Kingdom over proposed rules
that would curtail the company’s ability to operate.
“It’s a pretty great reset
for the company,” said Bradley Tusk, a political strategist
and investor in Uber. “EveryPlease see UBER page A9
Uber fare changes found to have
no effect on drivers’ pay............. B3
point, the cameras kept watch on the U.S. embassy in Kabul.
All the devices were manufactured by a single company, Hangzhou Hikvision Digital
Technology. It is 42%-owned by the Chinese
government.
Hikvision (pronounced “hike-vision”) was
INSIDE
nurtured by Beijing to help keep watch on its
1.4 billion citizens, part of a vast expansion of
its domestic-surveillance apparatus. In the
process, the little-known company has become
the world’s largest maker of surveillance cameras. It has sold equipment used to track
French airports, an Irish port and sites in Brazil and Iran.
Hikvision’s rapid rise, its ties to the Chinese
government and a cybersecurity lapse flagged
by the Department of Homeland Security have
fanned concerns among officials in the U.S.
and Italy about the security of Hikvision’s devices.
“The fact that it’s at a U.S. military installation and was in a very sensitive U.S. embassy
Please see CHINA page A10
B’ful Bride Seeks H’som Groom:
Matchmaking in 125 Characters
i
i
i
India’s parents use abbreviation-stuffed
newspaper ads to arrange marriages
MAP OUT
RETIREMENT
LOCATIONS
JOURNAL REPORT, R1
RIYADH IS
DELIVERING
ON VISION 2030
OPINION, A17
BY ERIC BELLMAN
roughly 125-character newspaper ads, which traditionalists
To find marriage partners insist are the best way to meet
for their sons and daughters, serious candidates, as opposed
parents across India are hoping to the ads on countless internet
for an I’less PQ T’tot, preferably marriage sites.
The websites “are all full of
W’stld at a PSU.
mischievous peoThey’re speakple,” said R.K.
ing the language
Agarwal,
who
of
“matrimospent years cirnials,” the abbrecling newspaper
viation-stuffed
ads with a pen
marriage ads that
every Sunday to
are still a Sunday
find matches for
staple in papers
his son and
read by hundreds
daughter. He said
of millions in InMatrimonial ads
website
ads,
dia, where family
elders commonly take the lead which allow for longer descripin the search for suitable tions and include photos, can
easily be faked, and don’t respouses.
The codes are necessary to quire enough effort to weed out
cram as much enticing informa- insincere people. “Newspapers
Please see ADS page A10
tion as possible into the
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 | Monday, November 13, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
THE OUTLOOK | Jon Emont
Global Trade Faces Long-Term Risks
Hong Kong
synchronous upturn
across major economies is reviving hopes
that a multiyear lull in global
trade is finally reversing and
will lift emerging markets
that built their economies
around exports.
In Asia, the world’s factory floor, exports are up
sharply, including gains of
18.5% from a year ago in
South Korea, nearly 11% in
Singapore and 20% in Vietnam. Chinese exports are up
5.5%, a rebound from the
past two years, when exports
contracted.
But it may be too early to
celebrate. Much of the export
growth in Asia comes from
demand for semiconductors,
partly to power smartphone
launches like Apple Inc.’s
iPhone X. That chip demand
is expected to fade next year.
Economists warn that some
of the recent gains look
strong when compared with
2016, a weak year for global
trade, but that year-overyear comparisons will become less favorable in 2018.
Headwinds facing global
trade are still blowing. Washington is pressing ahead with
challenges to its trading
partners, including Korea
and China. Indeed, rising
trade tensions were evident
A
at a Pacific Rim summit Friday, when President Donald
Trump repudiated decades of
U.S. support for multilateral
trade liberalization in the region. Debt levels are growing
across the world, including
in China, which could constrain consumption and investment.
Demographic trends may
also make it harder for goods
trade to accelerate, as aging
populations in the developed
world spend more on services like health care. Some
Asian exporters have demographic challenges of their
own, including shrinking
pools of low-cost labor.
“We think it’s not going to
last,” Trinh Nguyen, senior
economist at Natixis, said of
the recent strong export
numbers for some countries.
“I don’t think trade is going
to contract, but I think the
growth rate is going to slow.”
Of course, any new demand for exports is welcome
in Asian countries that built
their economic models
around selling to the rest of
the world.
Europe, a key trading
partner for Asian economies,
is finally emerging from its
post-financial crisis hangover, fueling demand for everything from sneakers to
electronics. In Japan, long-
Bouncing Back
Change from a year earlier in
exports for 2017*
20.1%
Vietnam
18.5
South Korea
17.5
Indonesia
Malaysia
14.1
Taiwan
13.9
India
13.6
10.7
Singapore
9.3
Thailand
China
5.5
*Through September
Source: CEIC
THE WALL STREET JOURNAL.
depressed consumption has
risen steadily. U.S. growth
has picked up in the nation’s
eighth year of expansion.
Buoyed by global growth,
South Korea’s gross domestic
product expanded at the fastest pace in seven years last
quarter and is expected to
grow 3% this year. Singapore’s economy grew at its
fastest pace in more than
three years last quarter, and
the government expects
growth to approach 3%, too.
Yet while 3% is considered
solid growth for both coun-
tries, it is slow compared
with the 1980s and 1990s,
when South Korea and Singapore regularly grew well
above 10%. Even during the
2000s, both countries consistently notched 5% growth.
And while the World
Trade Organization estimates
global trade will rise 3.6% in
2017, that pales compared
with the two decades leading
up to the financial crisis,
when trade grew on average
at about 6% a year.
“We’re in the sweet spot
of the global economy; this is
the time when trade growth
should be shooting up,” said
Michael O’Sullivan, chief investment officer of the international wealth management
division at Credit Suisse, and
co-author of a report titled
“Getting Over Globalization.”
Because some of the industries driving today’s
growth in Asia are so cyclical, the risk of a sharp swing
looms.
The semiconductor market
grew 17% this year but is expected to expand 4% next
year and even more slowly in
2019, as supply catches up
with demand, according to
the World Semiconductor
Trade Statistics. East Asia
makes roughly 70% of the
world’s semiconductors.
Policy makers across Asia
have been trying to become
less reliant on trade. South
Korean President Moon Jaein announced a 16% hike in
the minimum wage for the
start of 2018, along with big
increases in government
spending, a bid to drive up
wages and consumption.
Many economists support
the push for more spending
in principle but worry about
whether government is a
sustainable answer.
I
n China, despite recovering exports, analysts
worry about risks of a
prolonged economic slowdown, mainly because of
high debt levels, struggles
with industrial overcapacity
and likely unsustainable realestate booms. In Singapore,
the government has stepped
up public spending even as it
continues promoting industries such as financial services and tourism. Those industries have indeed grown,
though not so much that
Singapore can expect to see
much faster overall growth,
economists say.
“Once the cyclical recovery of trade slows down, it’s
going to be very difficult to
grow if [Singapore] doesn’t
have domestic demand to
generate this,” said Ms.
Nguyen of Natixis.
ECONOMIC
CALENDAR
TUESDAY: Germany and Italy release gross domestic
product figures for the third
quarter, rounding out a European
picture that points to a slight
slowdown from a robust first
half of the year. As with the eurozone as a whole, the German
economy is estimated by economists to have decelerated modestly during the period. The Italian economy is estimated to
have sustained its recent pickup
for a fourth straight quarter.
The U.K.’s statistic agency
releases October consumerprice inflation, following the
Bank of England’s decision to
raise interest rates for the first
time in a decade this month. Inflation in the U.K. has accelerated after the Brexit vote last
year, squeezing consumer spending and damping growth in the
largely domestic-driven economy.
WEDNESDAY: Japan releases GDP figures for the JulySeptember period (release time
is Tuesday evening in the U.S.).
The numbers are expected to
show the country’s seventh
straight quarter of growth.
The U.S. Labor Department
releases October U.S. consumerprice index figures, after prices
rose 0.5% in September because
of higher gasoline costs. Underlying inflation appeared tame, potentially raising questions for Federal Reserve policy makers who
have been waiting for signs of rising inflation before lifting interest
rates for a third time this year.
Racketeering Trial
To Air Soccer Deals
VINCENT KESSLER/REUTERS
BY REBECCA DAVIS O’BRIEN
GE Power, which supplies turbines for power plants, will be a major focus at Monday’s meeting with investors and analysts.
GE
Continued from Page One
pany’s portfolio of businesses
as part of how he leads the
conglomerate, the person said.
The Boston-based company
also plans to eventually shed its
majority stake in Baker Hughes,
which became a separate public
company in July after merging
with GE’s oil and gas operations, this person said.
GE owns 63% of Baker
Hughes, which had a market
value of $40 billion based on
Friday’s close. While it intends
to exercise its option to exit
Baker Hughes, the process
hasn’t started and would be
subject to some discussion between the companies’ boards,
the person said. Under the current arrangement, GE is restricted from selling its stake
for several years.
Mr. Flannery is expected to
streamline GE’s corporate
functions, this person said.
The company has about
24,000 people outside of its
major divisions, in research,
digital and headquarters functions. More research work will
be moved into specific business units, and software development will be limited to the
company’s core industries,
people familiar with the matter have said.
It is unclear how many jobs
would be affected by the restructuring moves, and Mr.
Flannery isn’t expected to announce a specific target on
Monday, the person familiar
with the matter said. GE employed about 295,000 people
at the end of 2016.
The meeting will give a
broad road map and outline a
continuing process, but won’t
detail every component of Mr.
Flannery’s pledge to sell more
than $20 billion worth of assets, the person said. People
close to the process say GE
Transportation, which makes
locomotives, is part of that
plan. The exit from Baker
Hughes isn’t considered part of
the $20 billion plan, said the
person familiar with the matter.
Mr. Flannery and the GE
board have been reviewing the
company’s dividend, though it
is unclear what has been decided. GE has struggled to
generate enough cash flow
from its industrial operations
Mr. Flannery is
expected to
streamline GE’s
corporate functions.
to cover the $8 billion payout
in recent years, especially as it
has pared down its GE Capital
unit. It cut the dividend by
half in 2009 during the financial crisis.
GE shares are down 35%
this year, hitting levels not
seen since 2012, compared
with a gain of 15% for the S&P
500. The company has lost
$50 billion in market value
since mid-July, when investors
were told to wait almost four
months for Mr. Flannery to
complete an internal review
and reset long-term financial
projections. The stock closed
Friday at $20.49.
Some investors and analysts have called on GE to reduce the dividend, saying the
company cannot afford to continue the payout. Others are
pushing for more radical
changes to its operations, including breaking up the company or selling off bigger
units, such as GE Healthcare,
which makes MRI machines
and other hospital equipment.
Aviation, power and health
care accounted for about 58%
of the company’s revenue at
the end of 2016 and 156,000
employees. The company has
already made some changes to
the divisions this year, such as
merging the energy connections division into GE Power
for a projected $1 billion in annual cost savings.
GE Aviation is one of the
top manufacturers of jet engines and enjoyed healthy orders in recent years as it
rolled out a new generation of
products. GE Healthcare was
run by Mr. Flannery until the
summer; he led a turnaround
of the unit driven by cost reductions and expanding its
services to drugmakers.
GE Power, however, which
supplies turbines for gas and
coal-fired power plants, has
struggled with its former management misjudging market
demand and carrying excess
inventory, the company has
said. The business will be a
major focus at the Monday
meeting as division head Russell Stokes is one of four presenting executives.
Former CEO Jeff Immelt revamped GE over his 16 years,
getting out of media, plastics,
appliances and most of financial
services, but also made some illtimed deals on the oil patch and
power markets.
Mr. Flannery hasn’t been
waiting for the investor meeting to make high-profile
moves. He has delayed parts
of a new Boston headquarters
project, grounded the corporate jets, moved to shut down
research centers, and started
thousands of layoffs.
After lowering profit targets
in October, the new CEO
pledged to cut an additional $1
billion in annual spending. Under pressure from activist Trian
Fund Management, Mr. Immelt
had planned to cut $2 billion in
costs by the end of 2018.
Mr. Flannery, who has spent
his entire 30-year career at GE,
has made management changes
to many divisions and replaced
chief financial officer Jeff
Bornstein with Jamie Miller,
who will be in the spotlight
Monday. Mr. Flannery is also
looking at the makeup of the
company’s board, suggesting
he will shrink it, and recently
gave Trian a seat.
CORRECTIONS AMPLIFICATIONS
Data from the Peterson
Institute for International
Economics showed that the
dollar was 5% overvalued
through July, based on the
group’s economic calculations. A Markets article on
Friday incorrectly said the
Peterson Institute estimated
the dollar was 5% undervalued and incorrectly gave the
name of the institute as the
Peterson Institute of International Economics. An accompanying chart also incorrectly stated value estimates
from the Peterson Institute
for the dollar and other currencies. The corrected estimates are in an updated online version of the chart at
https://www.wsj.com/articles/
w h a t s - a - d o l l a r worth-1510234254.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
NEW YORK—The wideranging allegations of corruption in soccer’s governing
body are set to arrive in a
Brooklyn courtroom this
week, claims that center on
decades of alleged bribery
and kickbacks involving international soccer tournaments.
The racketeering trial of
three former heads of Latin
American soccer federations,
including a former vice president of FIFA, is scheduled to
begin Monday in federal
court. Jurors will consider
U.S. prosecutors’ argument
that the sport’s governing
body was, in essence, a
sprawling criminal enterprise.
The trial represents a capstone of a yearslong investigation by U.S. law enforcement, which alleged schemes
involving two generations of
soccer officials across the
globe and more than $200
million in bribes in connection with media and marketing rights for soccer tournaments.
Prosecutors are expected
to reveal new details about
the complicated ways the defendants allegedly moved
cash to avoid detection and
information about how the
money was spent, according
to a person familiar with the
matter.
Evidence and witness testimony could also disclose
additional schemes involving
foreign governments and
multinational companies entangled in alleged wrongdoing, the person said.
Since prosecutors first unveiled charges in May 2015,
after the predawn raid on Zurich’s luxury Baur au Lac hotel, the case has ensnared international banks, apparel
businesses and media organizations and led to indictments against more than 40
people and entities, 23 of
whom have pleaded guilty in
the matter.
Among those on trial is
José Maria Marin, who led
Brazil’s soccer federation
from 2012 through early
2015. Mr. Marin—the only defendant remaining of the
seven arrested in Zurich two
years
ago—faces
seven
counts, including moneylaundering and wire-fraud
conspiracy.
Juan Ángel Napout, a former FIFA vice president who
led the Paraguayan soccer
federation and Conmebol, the
South American soccer federation, is charged in five of
the counts. Manuel Burga, the
former president of Peru’s
Allegations of bribery
center on media and
marketing rights for
FIFA tournaments
soccer federation, faces a single count of racketeering conspiracy, in which all three
men were charged.
Lawyers for the men
couldn’t be reached for comment. A spokesman for the
Brooklyn U.S. attorney’s office declined to comment on
the trial.
In June, prosecutors consolidated the charges against
the three men into a single
racketeering case, outlining
alleged schemes to receive
bribes and kickbacks from
sports marketing executives
in connection with marketing
and media rights for regional
soccer tournaments, including the Copa America and
World Cup qualifying games.
In one alleged scheme, Mr.
Marin is accused of accepting
bribes from a sports marketing company seeking commercial rights to the Copa do
Brasil tournaments from 2015
through 2022. Mr. Marin is
also accused of soliciting and
accepting bribes to secure
sponsorship rights to the
Copa Libertadores.
—Nicole Hong
and Sara Germano
contributed to this article.
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays.
Periodicals postage paid at New York, N.Y., and other mailing offices.
Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of
the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.com; By phone: 1-800-843-0008
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
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.
Monday, November 13, 2017 | A3
* * * *
U.S. NEWS
BY TAWNELL D. HOBBS
SUTHERLAND SPRINGS,
Texas—The white chairs are
arranged in odd clusters, each
one with a single red rose: two
together off to the side;
around 10 in the back corner; a
single chair on the altar of this
little church where a gunman
shot much of the congregation
a week ago.
The chairs mark where each
of the 26 victims fell. The unborn child of Crystal Holcombe
is represented by a separate
chair with a pink rose, next to
the mother’s.
One week after the murders,
the First Baptist Church of
Sutherland Springs reopened
its doors. The floors and walls
were painted white. It is reborn as a stark, but powerful
memorial.
The memorial also provides
a horrific map to the killings;
it encompasses the entire
sanctuary. White chairs are
scattered throughout the
room, some in clusters and
some alone.
Most of the congregation
was either killed or wounded,
and there have been few firsthand accounts of the events
inside the church. But survivors said the gunman, identified as a 26-year-old Air Force
veteran, sprayed bullets into
the congregants, shot those
who tried to flee, and paced
the pews, shooting victims at
close range.
Noah Holcombe, 17 months,
died next to her father, Marc
Daniel Holcombe. Megan Hill,
9, died next to her sister Emily,
11, and their mother Crystal,
36, as well their brother, Greg
Hill, 13.
A chair for Karla Holcombe,
the Holcombe grandmother, is
by itself at the front of the
church near the altar.
Church leaders said they
hope that the memorial, which
will be open weekdays from 10
a.m. to 10 p.m., can help the
community recover.
The First Baptist Church on
Sunday held its first service
since the murders. It was in a
tent in a field a few blocks
from the church, and included
remarks from the church’s pastor, Frank Pomeroy.
“We can’t allow the act that
happened last weekend to keep
us from church,” Mr. Pomeroy
said. “God is not dead.”
Chairs and roses show where people were found dead a week ago at the First Baptist Church in Sutherland Springs, Texas.
Faithful Balance Security, Openness
BY IAN LOVETT
AND ERIN AILWORTH
As he does every Sunday,
the Rt. Rev. Council Nedd II, an
Anglican rector, put on his collar and robes to offer Mass at
his
central
Pennsylvania
church. Now, he is considering
wearing something else with
his religious vestments: his
handgun.
As a Pennsylvania state
constable, Dr. Nedd can bring
his gun just about everywhere—to the grocery store, to
the park and to synagogues
and other houses of worship,
where he often acts as security.
His church was the one place
where he went unarmed.
“Weapons do not belong in
church,” he said. But, as a
bishop, he has “a responsibility
to protect the flock,” he added.
Dr. Nedd said he didn’t bring
his weapon to church this Sunday, but plans to in the future.
A week after a shooting at a
Texas church left 26 dead and
20 more wounded, congregations gathering for worship
around the country Sunday
once again faced the question
of security. Long the last frontier where many gun owners
went unarmed, the faithful are
now considering whether they
should bring firearms to their
houses of worship as well.
Sutherland Springs, Texas,
where last week’s shooting
took place, is a town full of gun
owners. One man who lived
near the church engaged in a
firefight with the attacker, 26year-old Devin Patrick Kelley,
after hearing the gunshots and
pursued Kelley as he exited the
church, hitting him twice.
Since 2012, there
have been at least 12
deadly shootings at
houses of worship.
But many locals said they
didn’t bring weapons into their
house of worship.
Tomie Barker, who attends
Christ Lutheran Church of Elm
Creek in Seguin, Texas, about
15 miles north of Sutherland
Springs, said her husband
didn’t have the firearm he is licensed to carry on him when
their church was locked down
following the shooting at the
nearby
First
Baptist
Church. But, she said, he
planned to have it with him on
Sunday.
Ms. Barker, 60, thinks other
worshipers will feel the same,
and said she told her pastor
the church should probably
make note of who is armed in
case another emergency arises.
Houses of worship are
among the softest of soft targets, with missions and traditions emphasizing welcoming.
Since 2012, there have been at
least a dozen deadly shootings
at houses of worship.
After the mass shooting,
Ken Paxton, the Texas attorney
general, said churches needed
armed protection.
Prestonwood
Baptist
Church, a megachurch in Plano,
Texas, announced last week
that it would be holding a free
seminar on church security.
Representatives from more
than 300 churches signed up
within three days.
With roughly 12,000 attendees at its services every Sunday, Prestonwood has armed
security guards. Jack Graham,
the church’s pastor, said the
church had resisted putting in
metal detectors so that the
church would continue to feel
welcoming, and didn’t allow
open carry of firearms for the
same reason. He suspects some
congregants with concealedcarry permits do bring their
firearms.
“Frankly, it brings some
comfort,” Dr. Graham said of
the armed church members. “If
there had been someone with a
weapon in that little church,
maybe that could have been
prevented.”
But not every house of worship can afford private security. Smaller churches are now
considering arming the congregation or clergy.
Tambria Read, a schoolteacher and chairwoman of the
Sutherland Springs Historical
Museum, owns a gun and supports people being able to
carry them, but had always
preferred to keep firearms out
of religious spaces.
“I’m not too crazy about
guns in church—somebody
could take the gun and do
something,” said Ms. Read, 59,
who sometimes worshiped at
the First Baptist Church but
wasn’t there last week. “Maybe
somebody in a church needs a
gun, someone strategic, but
not everybody in a pew.”
—Tawnell D. Hobbs
contributed to this article.
©T&CO. 2017
Chairs at First Baptist
now mark where each
of the 26 victims fell
in the massacre
RICK WILKING/REUTERS
Texas Church Reopens as a Memorial
IT’S TIME TO START THINKING ABOUT
THE PERFECT PRESENT
Vote to Test Pope’s Sway Over Bishops
Nearly five years into Pope
Francis’ reign as leader of the
Catholic Church, theologically
conservative Catholics around
the world are growing more
outspoken in opposition to his
agenda. The U.S. has been a
major hub of resistance.
Now, with the U.S. Conference of Catholic Bishops set to
gather for their annual meeting starting on Monday, an
election for a relatively obscure post—chairman of the
committee on Pro-Life Activities—is emerging as a barometer of support for Pope Francis
among the American hierarchy.
The vote is down to two
candidates—Cardinal Blase
Cupich, of Chicago, and Archbishop Joseph Naumann, of
Kansas City—who represent
the ideological poles of the
U.S. church and have articulated different visions of what
being pro-life should mean.
Archbishop Naumann, a
prominent conservative within
the church, is more ideologically aligned with Popes John
Paul II and Benedict XVI, Pope
Francis’ immediate predecessors, than with the current
pope.
Cardinal Cupich, a prominent liberal who was elevated
to cardinal by Pope Francis
last year, is seen as a close ally
of the pontiff.
The outcome, church officials and observers said, will
be an indication of the pope’s
ability
to
point
the
U.S. church—one of the largest
and wealthiest communities of
Catholics in the world—in the
CHRIS WALKER/CHICAGO TRIBUNE/ASSOCIATED PRESS
BY IAN LOVETT
AND FRANCIS X. ROCCA
Cardinal Blase Cupich, left, is vying to head the committee on ProLife Activities. The liberal is seen as a close ally of Pope Francis.
direction he intends. It will
also suggest what role the
church might play in coming
political battles in the U.S.
The committee has traditionally been led by a cardinal,
an indication of its importance
to the bishops. If Archbishop
Naumann wins, it will be seen
as a rejection of Pope Francis’
agenda—and a sign of continued resistance to him in the
American church.
“The election does kind of
encapsulate a battle going on
in the church,” said Patti
Miller, author of “Good Catholics: The Battle Over Abortion
in the Catholic Church.” “It’s a
perfect read on this current
moment in the church—if people are going to go the John
Paul II way or the Pope Francis way.”
Over the past year, Pope
Francis has faced increasingly
open criticism, both in the U.S.
and elsewhere, from theological conservatives, largely in
response to his teaching that
suggested divorced and remarried Catholics may, in at least
some cases, receive Communion.
One bishop said the conference was roughly split into
thirds: one third who supported Pope Francis, one third
more in line with Pope Benedict, and one third in the middle.
The pro-life committee
election, the bishop said, will
provide a measure of whether
the group in the middle is
moving toward Pope Francis’
approach.
Like all the bishops, both
candidates are clear on their
opposition to abortion, but
they offer different views of
what being pro-life entails—a
question with major implications for the church’s political
alliances.
Archbishop Naumann emphasizes abortion as the paramount issue.
That position has prevailed
among bishops in recent
years, and has frequently put
them at odds with Democratic
politicians.
In an interview, Archbishop
Naumann played down competition with Cardinal Cupich, and said he would keep
the pro-life committee’s focus
on abortion and euthanasia.
“The vast majority of bishops see this as the moral crisis
of our time,” he said, referring
to abortion. “The church’s
leadership in this area is extremely important.”
He said he wanted to “build
upon” the church’s leadership
on abortion, adding, “Absolutely, we have to be out there
advocating for immigrants, for
migrants, for the care of the
poor. But that would be a real
shift to put that all under the
pro-life secretariat.”
That is exactly the shift
Cardinal Cupich has advocated—a move that would put
the bishops more in line with
Pope Francis.
In a 2015 op-ed for the Chicago Tribune, the cardinal
pushed for a “consistent ethic
of life.”
People were right to be appalled by abortion practices,
he wrote, but added, “we
should be no less appalled by
the indifference toward the
thousands of people who die
daily for lack of decent medical care…or who are executed
by the state in the name of
justice.”
A spokeswoman for Cardinal Cupich said he was unavailable to respond to requests for comment at any
time during the two weeks
prior to the annual meeting.
800 843 3269
CLASSIMA
Collection
|
TIFFANY.COM
Starting at
$990
CHONG HING / Rowland Heights, CA / 626.810.8883
GOVBERG / Ardmore, PA / 610.664.1715
TIVOL / Kansas City, MO / 816.531.5800
www.baume-et-mercier.com
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
A4 | Monday, November 13, 2017
P
W
L
C
10
11
12
H
T
G
K
B
F
A
M
1
2
3
4
5
6
7
8
9
O
I
X
X
THE WALL STREET JOURNAL.
****
U.S. NEWS
Trump Tempers Skepticism on Meddling
After calling former
intelligence chiefs
‘hacks,’ president says
he accepted their report
BY MICHAEL C. BENDER
MIKHAIL KLIMENTYEV/AGENCE FRANCE-PRESSE/GETTY IMAGES
HANOI, Vietnam—A day after he called three former heads
of U.S. intelligence agencies
“political hacks,” President
Donald Trump said he had full
confidence in the agencies and
indicated he believed their report that concluded Russia
meddled in the 2016 presidential election.
But the president’s shift in
tone failed to mollify the targets of his remarks, with former Central Intelligence Agency
Director John Brennan saying
he believed Mr. Trump was trying to “delegitimize” the intelligence community’s conclusion
that Russia had interfered.
“Considering the source of
the criticism, I consider that
criticism a badge of honor,” Mr.
Brennan said Sunday on CNN.
James Clapper, former director of national intelligence, appearing on the same program,
said Russia poses a continuing
threat and yet Mr. Trump insisted on “rolling out the red
carpet” for Russian President
Vladimir Putin.
“The Russians do not harbor
good intentions toward the
United States, and there
shouldn’t be any illusions or
any ambiguity about that,” Mr.
Clapper said. “And our president fosters that ambiguity.”
Both Mr. Brennan and Mr.
Clapper served under President
Barack Obama.
Mr. Trump is in the midst of
a 10-day swing through Asia.
President Trump says President Putin is annoyed by repeated questions about Russian meddling in the 2016 U.S. presidential election.
Standing outside the presidential palace in Hanoi on Sunday
with Vietnam President Tran
Đai Quang, Mr. Trump begrudgingly acknowledged his
acceptance of the intelligence
report on the election issued
earlier this year. He declined,
however, when asked to answer
with a yes or no about whether
he believed the report was true.
Instead, he expressed confusion that there was any question about his confidence in the
agencies and cast doubt on the
previous administration, which
initially assembled the report.
“I am with our agencies, especially as currently constituted,” Mr. Trump said. “I believe very much in our
intelligence agencies.”
On Saturday, flying from Da
Nang, Vietnam, Mr. Trump told
reporters that Mr. Putin was irritated by repeated questions
about his country’s involvement
in the election, and he criticized
the former heads of the U.S. intelligence agencies that put together the report.
“I mean, give me a break—
they’re political hacks,” Mr.
Trump said Saturday. “You have
Brennan, you have Clapper, and
you have [former Federal Bureau
of Investigation Director James]
Comey. Comey’s proven now to
be a liar, and he’s proven to be a
leaker, so you look at that. And
you have President Putin very
strongly, vehemently says he
had nothing to do with that.”
Messrs. Brennan, Clapper
and Comey were in charge of
their respective intelligence
agencies when those agencies
released a declassified report in
January that concluded Russia
successfully interfered in the
2016 U.S. presidential election.
Mr. Trump has struggled to
put to rest questions about the
report—and Russian’s role in
the election. “As far as the
hacking, I think it was Russia,”
he said at the time. ”But I think
we also get hacked by other
countries and other people.”
Sunday on CNN, Mr. Brennan
also said Mr. Trump was “naive” to believe that Russia
would be helpful toward U.S. interests. “It’s very clear that the
Russians interfered in the election and it’s still puzzling as to
why Mr. Trump does not acknowledge that, embrace it and
also push back hard against Mr.
Putin,” Mr. Brennan said.
Treasury Secretary Steven
Mnuchin, speaking Sunday on
CNN, responded to the comments by Messrs. Brennan and
Clapper by saying, “President
Trump is not getting played by
anybody.”
The CIA declined to comment.
At the press conference with
Mr. Quang, Mr. Trump hailed
Vietnam’s growing middle class
as “a key market for American
goods and services,” listing U.S.
energy, agriculture, financial
services, aviation, digital commerce and defense products as
industries where Americans “are
able to meet all of your many
commercial needs.” The U.S.
trade deficit with Vietnam has
widened over the past decade,
exceeding $30 billion last year.
Mr. Trump has focused many
of his public comments on urging China to put more pressure
on North Korea to dismantle its
nuclear program, and to point
out the trade imbalances between the U.S. and Asia’s economic powers.
Asked about North Korea on
Sunday, Mr. Trump said it was a
“possibility” that he could have
a friendly relationship with Kim
Jong Un. The two leaders have
engaged in a war of words, with
each disparaging the other’s
looks and mental capacity.
—Natasha Khan
contributed to this article.
Andrew Browne: Smiles mask
trade tensions........................... A8
U.S.-Philippines talks set for
warmer tone.............................. A9
White House Holds Back on Moore Foreign-Student Surge
Starts to Ease Off
BY LOUISE RADNOFSKY
AND NANCY A. YOUSSEF
TAXES
Continued from Page One
actually pretty good,” said
Lawrence Zelenak, a Duke University law professor. “It gets
rid of several things which add
a lot of complexity for a lot of
ordinary taxpayers.”
The National Taxpayer Advocate, an internal IRS watchdog, estimates tax filing costs
about $195 billion a year and
six billion hours in annual compliance costs.
The plans’ biggest simplification affects itemized deductions. Republicans want to repeal the personal exemption,
which would let taxpayers in
2018 subtract $4,150 from taxable income for themselves, their spouses and each
of their dependents.
They would replace it with a
nearly doubled standard de-
BY MELISSA KORN
WES FRAZER/GETTY IMAGES
WASHINGTON—Top White
House officials said Sunday they didn’t have enough information to judge whether Republican Senate candidate Roy
Moore should withdraw from
his race over allegations that he
pursued teenage girls, including
one 14-year-old, while he was in
his 30s.
Mr. Moore, who is running
for a U.S. Senate seat from Alabama, has denied sexual misconduct. The claims against him
have split the GOP and thrown
into question the balance of
power in the Senate, where Republicans hold a narrow majority of 52.
Kellyanne Conway, a senior
White House counselor, and
Steven Mnuchin, the Treasury
secretary seeking a tax overhaul
that could hinge on the size of
Republicans’ Senate majority,
both said Sunday they condemned the actions of which
Mr. Moore was accused but
didn’t know enough to judge
the veracity of the claims.
“I only know what I read,”
Ms. Conway said on ABC. “I
take this seriously…. I also want
to make sure that we as a nation are not always prosecuting
people through the press.”
Sen. Pat Toomey of Pennsylvania on Sunday joined a group
of GOP senators calling on Mr.
Moore to drop out of a special
election next month in what is a
deep-red state. Mr. Moore defeated Sen. Luther Strange, who
had been filling the seat vacated by Attorney General Jeff
Sessions, in a September runoff
to become the GOP candidate.
“I have to say, I think the ac-
GOP Senate hopeful Roy Moore appeared Saturday at a Veterans Day event in Vestavia Hills, Ala.
cusations have more credibility
than the denial. I think it would
be best if Roy would just step
aside,” Mr. Toomey said on
NBC. “I think a write-in is
something we should certainly
explore. I think Luther Strange
would be a strong candidate for
a write-in.”
Prominent GOP senators including Bill Cassidy of Louisiana, Mike Lee of Utah and Steve
Daines of Montana withdrew
their support for Mr. Moore
over the weekend.
On Friday, the National Republican Senatorial Committee
withdrew from a joint fundraising committee with Mr. Moore,
the Republican National Committee and the Alabama Republican Party, according to a Federal Election Commission filing.
The RNC and the state party declined to comment on whether
they would follow the NRSC.
The allegations surfaced in a
report in the Washington Post
just one month before Alabama
voters are set to hold the special Senate election to choose
between Mr. Moore—an evangelical conservative who is a
hero of the religious right—and
Democratic candidate Doug
Jones, a former U.S. attorney.
Democratic Sen. Chris Van
Hollen of Maryland said Sunday
on Fox that the decision on the
accusations would ultimately
fall to Alabama voters, but that
they had “a great alternative”
candidate in Mr. Jones.
A handful of Republicans
have openly spoken in Mr.
Moore’s defense, questioning
the motivation of his accusers,
the accuracy of the Post report
or, in some cases, saying that
the actions of which he is accused don’t disqualify him from
office.
On Sunday, Ms. Conway was
pressed by ABC co-anchor Mar-
tha Raddatz about whether she
believed the allegation first reported in the Washington Post
from Leigh Corfman that Mr.
Moore sexually touched her
when she was 14 years old.
“I don’t know Leigh Corfman,” Ms. Conway said.
A family member of Ms. Corfman’s reached by phone by The
Wall Street Journal after the
Post article was published said,
“The story as we know it is
completely accurate.” He said
he had heard the account from
Ms. Corfman and added “this
happened, this is not fake
news.”
Ms. Conway and Mr.
Mnuchin were echoing the
president, who said through
spokeswoman Sarah Huckabee
Sanders that he believed that
Mr. Moore should step aside if
the allegations were true, but
that he didn’t know whether
that was the case.
duction of at least $24,000
while limiting or repealing deductions. The House and Senate would repeal the deduction
for state and local income and
sales taxes; the House would
retain a partial property-tax
deduction.
Despite the larger standard
deduction, the repeal of the
personal exemptions means the
amount of income that is tax
free wouldn’t be close to doubled. Instead, fewer people
would itemize deductions because fewer would exceed the
standard deduction.
That is a backdoor way of
limiting tax breaks for mortgage interest and charitable
contributions, and it’s why
many home builders, real-estate agents and charities oppose the GOP plans.
“The guy who’s getting a
salary and a W-2, his life’s going to be a whole lot easier
when he goes to fill out his tax
return,” said Rep. Tom Rice (R.,
S.C.), a tax lawyer and member
of the House Ways and Means
Committee.
The House’s combination of
policies means 6% of households would itemize deductions,
down from about 30%. That
means less time tracking charitable contributions and other
ber.
Still, the promise of postcard-style filings was never
wholly realistic, because even
behind simple filings are calculations, work sheets and definitions that add complexity,
time and work.
For many households, simpler isn’t necessarily better.
A married couple with
$30,000 in deductible medical
expenses for nursing-home care
generally fares worse under the
House bill than today. The
House plan would repeal the
medical expense deduction,
pushing that family to the
$24,400 standard deduction
and taxing more of their income.
The same is true for households taking the student loan
interest deduction, now available to households that use the
standard deduction; it would
disappear in the House plan.
“Many of the people that I
The promise of
postcard-style filings
was never wholly
realistic.
expenses and is what’s behind
the postcard vow.
“Ninety four percent of the
people would not itemize based
on this new tax bill,” said Rep.
Jim Renacci (R., Ohio), an accountant and committee mem-
THE WALL STREET JOURNAL.
student enrollments rose by
3.4%, to 1.08 million, a record
high but the smallest year-overyear gain since 2009.
The data, released Monday by the nonprofit Institute of
International Education, portends challenges for U.S.
schools that have benefited
from the influx of international
students.
Many
institutions have grown reliant on a
steady stream of students from
other countries to counter tight
state funding and high tuition
discounts that are now the
norm for local students.
“When you lose 100-some international students and multiply that by tuition, that’s obviously a hit on the budget,” said
Jim Baker, vice president for research and economic development and international programs at Missouri State
University.
That school counted 1,526 international students this fall,
the lowest number in five years.
A survey of some 500 colleges and universities conducted in September and October by IIE and nine other
higher-education organizations
found that international newstudent numbers fell by 7% this
fall, with the largest drops
among less selective colleges
and those in the Midwest.
“This has really served as a
wake-up call” for colleges
to rethink their international
recruiting strategies, said Allan
Goodman, president and CEO of
IIE. For example, he said, some
schools are focusing more on
appealing to international students already in the U.S. for
high school.
represent would rather have
their loan interest deduction, if
they have substantial student
debt, than being able to file on
a postcard,” said Rep. Lloyd
Doggett (D., Texas).
The tax code is complicated
in part because the U.S. delivers social and economic policy
through taxes. Some complexity is designed to stop businesses
and
high-income
households
from
cheating. And interest groups—
from colleges to financial-services firms—get lawmakers to
insert and protect their favorite breaks.
“Until our society gets more
simplified, you’re not really going to have a way you mail in a
10-line tax return,” said Mark
Steber, chief tax officer at Jackson Hewitt Tax Service Inc.
For some people, the status
quo is preferable, even within a
$1.5 trillion tax cut over a decade. About 8% of households
would pay higher taxes in 2019
under the House plan than under current law, according to
the Joint Committee on Taxation. By 2027, that rises
to nearly 20%.
The Senate plan retains the
medical-expense and studentloan interest deductions. In
2019, 9% of households would
pay more, according to JCT. In
2027, 12% would pay more.
In other cases, Republican
plans add new complexity.
They retain today’s tax brackets for capital gains and dividends while changing ordinary
income brackets, so anyone
with investment income has
two different rate structures.
They would add new rules for
pass-through businesses such
as partnerships and S corporations. For top-bracket households, the House creates a
“bubble rate” that claws back
the benefits of the bottom
bracket.
The surge in foreign student
enrollment that has bolstered
diversity and finances at U.S.
colleges for the past decade is
starting to slow—and concern
that the Trump administration
is tightening its borders is only
one factor in the turning tide.
Saudi Arabia and Brazil,
which have been big players in
sending students to the U.S.,
recently pulled back on government scholarships. Meantime,
competition is heating up from
shorter degree programs in Europe and improving options
closer to home.
Nationwide, new-student enrollments by foreign students at
U.S. colleges and universities
fell 3.3% in fall 2016 from the
year before, the first decline in
a decade. Overall international-
Thinning Out
First-time enrollments by
international students at U.S.
colleges fell in the 2016-17 academic
year, the first decline in a decade.
300,000 students
200,000
100,000
0
2005
’10
’15
Note: Dates are for academic years beginning
in the year shown.
Source: Institute of International Education
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.
Monday, November 13, 2017 | A5
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
A6 | Monday, November 13, 2017
* ****
THE WALL STREET JOURNAL.
WORLD NEWS
Hariri Says He Will Return to Lebanon
Prime minister says
he can move freely,
denies Saudi officials
pressed him to resign
Lebanese Prime Minister
Saad Hariri said he would return to Beirut within days
from his de-facto exile in Riyadh, after his sudden resignation more than a week ago
thrust Lebanon back to the
forefront of a regional struggle between Saudi Arabia and
Iran.
Mr. Hariri, who leads Lebanon’s main Sunni Muslim political bloc, has remained outside the country since he quit
his job from the Saudi capital
on Nov. 4, citing what he
called the destructive role of
Iran and its Lebanese proxy
Hezbollah in the Middle East
and saying he feared for his
life.
In an emotional interview
from Riyadh aired live on his
family’s television channel on
Sunday, Future TV, Mr. Hariri
sought to dispel rumors that
the Saudi government—his
chief foreign patron—had
pressured him into resigning
and restricted his movements.
“I wrote the resignation letter because I wanted to create
a positive shock to show the
severity of the situation,” Mr.
Hariri said in his first public
comments since he stepped
down. “I can leave the kingdom at any moment, but I am
reviewing security arrangements to make sure that I can
return safely to a safe Lebanon.”
He said he plans to go back
to Lebanon in “two or three
ANWAR AMRO/AGENCE FRANCE-PRESSE/GETTY IMAGES
By Nazih Osseiran in
Beirut and Margherita
Stancati in Riyadh
Customers at a Beirut coffee shop watched a television interview with Lebanon’s Prime Minister Saad Hariri on Sunday.
days” to formally tender his
resignation.
Mr. Hariri’s departure has
triggered a political crisis in
Lebanon that threatens the
country’s delicate balance
among the predominantly
Christian, Sunni Muslim and
Shiite Muslim populations.
Lebanon’s Christian president, Michel Aoun, an ally of
Shiite Hezbollah, has accused
Saudi Arabia of holding Mr.
Hariri against his will, an allegation he reiterated on Sunday
ahead of the televised interview.
"Hariri’s freedom of movement is being limited and
there are conditions imposed
on his stay [in Saudi] and even
on him contacting his family,”
Mr. Aoun said on Sunday afternoon. As a result, the “positions and statements” of Mr.
Hariri “cannot be relied on or
considered as statements coming willingly from the prime
minister.”
On Friday, Hezbollah Secretary-General Hassan Nasrallah
accused Riyadh of holding Mr.
Hariri under house arrest. "It
is obvious that Saudi Arabia
has declared war on Lebanon
and Hezbollah,” he said during a televised statement on
Friday.
Spokespersons for the
Saudi government didn’t immediately respond to a request for comment. The coun-
try’s acting ambassador to
Lebanon on Saturday said Mr.
Hariri was in Saudi Arabia by
his own will and was free to
move.
Lebanon finds itself at the
heart of a rivalry between
Saudi Arabia and Iran for regional dominance. For years,
wars in Syria and elsewhere,
and the territorial expansion
of Islamic State, meant that
Lebanon was low on their list
of priorities. Now, as those
conflicts are drawing to a
close, the country is gaining
renewed focus from Riyadh
and Tehran.
The troubles between Lebanon and Saudi Arabia also
have aroused the concern of
the U.S., which considers both
to be key partners in the region. “The United States cautions against any party, within
or outside Lebanon, using Lebanon as a venue for proxy conflicts,” Secretary of State Rex
Tillerson said on Friday, a
clear reference to Riyadh and
Tehran, both of which have
seen the country as a battleground for influence.
Mr. Hariri on Sunday ruled
out the possibility of an armed
conflict in Lebanon: “We will
not allow a regional war in
Lebanon for the benefit of regional calculations.”
He said he wants Lebanon
to stay neutral in regional rivalries, and appealed to Hez-
bollah to cease its involvement
in conflicts like the war in
Syria, where it is fighting
along with Iran on behalf of
Syrian President Bashar alAssad. Saudi Arabia is a supporter of the Syrian opposition fighting against him.
Mr. Hariri’s resignation announcement almost immediately sparked rumors that
Saudi Arabia was restricting
his movements, which persisted even as he met foreign
diplomats in Riyadh and traveled to the United Arab Emirates on a day trip.
According to an account described by people familiar
with the matter, Saudi officials, frustrated that Mr. Hariri
had been unable to contain the
influence of Hezbollah, summoned him to Riyadh on Nov.
3.
The Saudis pressured him
into resigning after he declined to embrace a more
hard-line stand against the
militant group, those people
said.
“He was ordered to resign.
He was ordered to stay,” said a
person briefed on the events
by a member of the Hariri
family.
Saudi Arabia is now seeking
to elevate as head of the Sunni
bloc Mr. Hariri’s older brother,
Bahaa Hariri, who they hope
will be more aggressive in
countering Hezbollah and Iran,
the person said.
Saudi officials asked members of the Hariri family to
come to Riyadh in order to
persuade the family members
to pledge allegiance to Bahaa
Hariri, a request they are resisting.
“They are lost. They can’t
say no and they don’t want to
say yes,” the person said. “But
they don’t have a choice.”
—Summer Said in Dubai
contributed to this article.
In Iraq, a New Cycle of Retribution Poland Condemns
Iraqi pro-government forces are shown in Zumar in October.
fighters out a few weeks ago.
The offensive came just as
Iraqi forces, who were allied
with the Kurds in the war
against Islamic State, drove
the militants out of their last
strongholds in the country.
As their common enemy
nears defeat, the factions that
came together against Islamic
State are once again prioritizing their own agendas.
The shift came soon after
the Kurds moved to break
away from the rest of the
country with a Sept. 25 referendum on independence.
In a startling turn, Iraqi
Prime Minister Haider alAbadi mobilized troops against
his former Kurdish allies.
Within days, he reasserted
Baghdad’s authority across
disputed, ethnically mixed ter-
Shaken Region
A powerful earthquake struck along the Iran-Iraq border on Sunday.
Intensity of Sunday’s quake
Light
Moderate
Strong
Very strong
50 miles
50 km
Erbil
Mosul
T ig ris
River
IRAN
Kirkuk
Halabja
IRAQ
Sanandaj
Epicenter
Hamedan
Tikrit
Kermanshah
Baghdad
Euphrates
River
Source: U.S. Geological Survey
THE WALL STREET JOURNAL.
ritories the Kurds had seized
outside their semiautonomous
region in the north.
With that land, stretching
from Iran in the east to Syria
in the west, the Kurds had enlarged the territory under
their control by about 40%.
Baghdad continues to demand the Kurds surrender the
rest of the territory they control outside the formal boundary of their region, as well as
international border crossings
they hold. The central government has massed troops near
Zumar to pressure Kurds.
The Kurds called on Nov. 6
for dialogue to ease tensions
with the central government.
The erasing of symbols reminded Kurds of a dark chapter
in the past, when they were displaced en masse from those
same areas by former dictator
Saddam Hussein as he sought
to consolidate government control over oil resources and arable land in the north through a
campaign of “Arabization.”
After driving Islamic State
out of some of those areas, the
Kurds destroyed Arab homes,
banishing many they accused
of supporting the militants.
Arabs banished from Zumar
under Kurdish rule are now returning to the area, and pitching
tents among the ruins of their
villages. Some human-rights
groups said the villages were at
least partly destroyed by Kurdish forces in an effort to change
demographics in their favor.
Since Iraqi forces moved in
on Oct. 13, more than 180,000
people, mainly Kurds, have
fled the disputed areas, according to the United Nations.
Some Kurds who fled said
they fear retribution by Iraqi
forces and local residents from
other ethnic groups, primarily
Arabs, who resented Kurdish
dominance and have been
newly empowered by the restoration of federal authority.
In some areas, Kurdish property has been ransacked and
torched. In Zumar district, the
chief of police and head of intelligence—both Kurds—have
been replaced with Arabs.
“We have been liberated
from the Peshmerga,” said a
60-year-old resident, who returned to the Zumar area less
than three weeks ago to find
his house in the Arab village
of Barzan destroyed.
Nationalist March
BY DREW HINSHAW
Polish government leaders
condemned two self-described
radical nationalist groups
seeking an ethnically and religiously pure country that organized an Independence Day
event attracting tens of thousands of people.
“We do not approve of support in the public sphere for
an ethnic national community,
we support the idea of a nation rooted in culture,” Piotr
Glinski, the country’s deputy
prime minister said on Sunday, a day after the country’s
largest national independence
celebration attracted far-right
movements from at least six
other European states.
The National Radical Camp
and the All Polish Youth—two
nativist political movements
both named after Polish antiSemitic fascist leagues from
the 1920s and 1930s—organized Saturday’s march to
mark the 99th anniversary of
the country’s independence.
Many of the attendees—estimated at 60,000 by the police—said they were not members of those organizations,
but saw nothing wrong with
celebrating their country’s
1918 statehood marching
alongside them.
The march underscores how
a growing section of Polish
youth are turning rightward.
The National Radical Camp
seeks an ethnically pure Poland, and has focused rhetoric
against Jews and Muslims,
both groups representing less
than 1% of the country’s population.
The National Radical Camp
has said it wants an authoritarian, Catholic Poland, and its
members have burned Jews in
effigy.
The size of the march
raised questions in the Polish
press over the degree to which
the marchers subscribed to
the two groups’ beliefs, or
whether they were simply
willing to overlook them as
they joined the biggest event
in the capita on Saturday.
Although the two groups
organized the march, some
government leaders described
them as a fringe within the
crowd. Interior Minister Mariusz Blaszczak said on Sunday
he didn’t see any racist signs
or symbols at the march.
The largely young crowd on
Saturday shot off Roman candles and many chanted “fatherland,” behind banners
such as “Clean Blood” or “Europe Will Be White or Deserted.” Some marchers said
they had flown in from Hungary, Slovakia and Spain.
“There are, of course, nationalists and fascists at this
march,” said Mateusz, a 27year-old wrapped in a Polish
flag, “I’m fine with it. I’m just
happy to be here.”
Quake Kills Scores
Near Iran-Iraq Border
Associated Press
TEHRAN, Iran—A powerful
earthquake shook the Iran-Iraq
border late Sunday, killing
more than 140 people and injuring 860 in Iran alone, state
media there reported.
The Baghdad government
didn’t immediately disclose
damage or casualties in Iraq.
The magnitude-7.3 quake
was centered 19 miles outside
the eastern Iraqi city of Halabja, according to the most recent measurements from the
U.S. Geological Survey.
Iranian social media and
news agencies showed images
and videos of people fleeing
their homes in the western Ira-
nian province of Kermanshah.
The state-run IRNA news
agency reported the increase
in casualties early Monday and
said rescue work was continuing overnight and would accelerate during the daytime.
The semiofficial ILNA news
agency said at least 14 provinces in Iran had been affected
by the earthquake.
Officials said schools in
Kermanshah and Ilam provinces would be closed on Monday because of the tremor.
Iranian state TV also said
Iraqi officials reported at least
six people dead inside Iraq.
Iran sits on many major
fault lines and is prone to
near-daily quakes.
PAWEL SUPERNAK/EPA/SHUTTERSTOCK
ZUMAR, Iraq—The victors
in the latest reversal of fortunes in this part of northern
Iraq have wasted no time erasing the legacy of three years
of Kurdish rule.
Since routing the Kurds in
October, Iraqi forces have
scrubbed out their sun-emblazoned flag and replaced pictures
commemorating Kurdish Peshmerga fighters killed in the war
against Islamic State with portraits of their own “martyrs.”
A mural depicting the father of the Kurdish nationalist
struggle, Mala Mustafa Barzani, has been defaced.
Scrawled over it are the
words: “Long live Iraq!”
The shift in power has favored local Arabs over Kurds
here, setting off a new round
of score-settling that undermines hopes for stability in
the country just as it triumphs
over Islamic State.
“Arab politicians claim the
Kurds Kurdicized the area
[and] Kurdish politicians claim
the Arabs Arabized the area,”
said the head of Zumar district,
Ahmed Jaafar. “Things are not
stable at all—not only in Zumar
but all over Iraq. We are worried about the coming stage.”
Kurdish fighters routed Islamic State from this oil-rich
district of 90,000 people in
2014. But for much of the
area’s Arab population, the
real liberation came when
Iraqi forces pushed Kurdish
ARI JALAL/REUTERS
BY ISABEL COLES
AND ALI NABHAN
Marchers marked Polish independence in Warsaw on Saturday.
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.
Monday, November 13, 2017 | A7
Export Food,
Not Jobs
Congratulations to the Trump administration and
Agriculture Secretary Sonny Perdue (pictured left,
at last month’s second annual Global Food Forum)
for increasing America’s food exports by 9 percent in
the past 12 months after recent years of decline. This
growth includes beef by 25% and dairy by 16%.
We salute the Trump administration’s constancy of
focus on exports, deregulation and other key drivers of
success for farmers and food processors of America.
Anthony Pratt
Executive Chairman, Pratt Industries
Pratt Industries is one of the largest corrugated box manufacturers in the United States.
Our boxes save money and save the environment.
www.prattindustries.com
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.
A8 | Monday, November 13, 2017
WORLD NEWS
Smiles Mask Trade Tensions
China Massages
Its Global Message
BY TE-PING CHEN
A
s Mr. Trump lavished
praise on the Chinese
president, three U.S.
aircraft-carrier strike groups
prowled the Western Pacific.
They are a reminder of the
military options the Pentagon is weighing against
Pyongyang, knowing that
while China could do more
to pressure Kim Jong Un to
slow his nuclear buildup, Mr.
Xi’s leverage is limited.
Meanwhile, back in Washington lower-level aides are
dusting off a rarely used
Cold War-era trade weapon
that invokes national-security considerations to push
back against Chinese steel
Presidents Xi Jinping, left, and Donald Trump smiled during a meeting in Beijing on Thursday.
and aluminum dumping. The
action reflects an acknowledgment that Mr. Xi has no
intention of abandoning
predatory industrial policies
to bring China, in his words,
“closer to the center” of the
world, and that conventional
counters to Chinese abuses,
like World Trade Organization complaints, don’t work.
All this suggests that a
largely vacuous meeting in
Beijing may go down in history as the prelude to a faceoff on trade and other contentious issues that Mr. Trump
repeatedly threatened during
his campaign but has conspicuously failed to bring on.
Indeed, empty summitry
may have been part of the
White House game plan.
Both sides normally strain
for agreements to show
progress toward all-around
engagement. This time was
different. Nobody was fooled
by the $250 billion in commercial deals signed.
Focus exclusively on his
gushing personal diplomacy
and the view might be that
Mr. Trump was played like a
fiddle. Dwell on the modest
takeaways and the White
House appears to have used
the summit to signal it is no
longer playing the old game
of pretend. Is this why, after
Mr. Trump had left Beijing,
his hosts offered improved
market access for U.S. securities firms and banks?
White House aides suggest
this concession was granted,
not demanded.
In this more nuanced reading from Washington’s perspective, Mr. Trump’s role
was to enhance a rapport with
Mr. Xi that will help anchor
the relationship in advance of
expected turbulence ahead.
T
here was nothing subtle, though, about Mr.
Trump’s address to
Asian leaders gathered in the
Vietnamese coastal resort of
Da Nang. In front of a group
dedicated to multilateral
trade, he thundered his insistence on one-on-one deals.
Borrowing a line from Dorothy in “The Wizard of Oz,”
Mr. Trump took a dig at the
ethno-nationalism that imbues Mr. Xi’s dream, as well
as his “Belt and Road” initia-
tive: “The world has many
places, many dreams and
many roads,” he said to scattered applause. His America
First stridency, though—“but
in all of the world there’s no
place like home”—was received in silence.
There’s his problem: The
marketing of nationalism—
each country for itself—creates fissures in Asia.
Whether Mr. Trump is confronting North Korea or Chinese territorial assertiveness, he needs an Asian
coalition behind him, which
means promoting common
values in a region of traders.
Mr. Xi understands this, at
least rhetorically.
Mr. Xi’s attempts to pose
as the savior of open markets and globalization draw
as much skepticism today as
when he first pitched himself
in that role at Davos this
year. But what he offers is
inclusion, not retreat.
Having forged the region
in its own image—a freetrading and substantially
democratic dynamo—the U.S.
now risks bequeathing the
fruits to a rising China.
GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES
HANOI—On its face, Donald Trump’s deference to Xi
Jinping at their summit was
a victory for China, although
not nearly the surrendering
of U.S. leadership in Asia to
the Chinese strongman that
some critics allege.
Mr. Xi’s China, Mr. Trump
said, paying fulsome tribute
to the omnipotence of the
newly
crowned supreme leader
standing next
to him, could
fix the North Korean nuclear
crisis “easily and quickly,”
On Chinese trade abuses,
he appeared to absolve Mr.
Xi of all responsibility, provocatively suggesting there
is honor in the way Chinese
leaders game the global
trading system to win advantage for their people. “I give
China great credit,” he said.
Look beyond the flattery,
however, and a harder-edged
strategy comes into focus.
IVANOV ARTYOM/TASS/ZUMA PRESS
CHINA’S WORLD
By Andrew Browne
BEIJING—Xi Jinping wants
the media to tell China’s stories better. These days, he is
increasingly finding willing
partners abroad.
The Chinese leader has exhorted state media to do more
to “enable the world to see a
multidimensional and colorful
China,” present his nation as a
builder of global peace and
help strengthen China’s influence abroad.
China has for years placed
paid English-language statemedia supplements in foreign
newspapers, including The
Wall Street Journal.
Under Mr. Xi, Beijing, which
often calls Western depictions
of its society unfair, has also
stepped up support for co-productions with foreign partners, including documentary
tie-ups spotlighting the country’s culture, technological advancements and infrastructure
projects.
One such feature is “China:
Time of Xi,” a documentary
produced by Discovery Channel’s Asia arm that was first
broadcast in China in October—during a Communist
Party congress that gave the
leader a level of authority
comparable to Chairman Mao.
Interspersed in the production are admiring words for
Mr. Xi and his policies.
The documentary mentions
some of China’s challenges,
such as pollution. But there is
no mention of more controversial aspects of Mr. Xi’s tenure,
such as his crackdowns on
speech and dissidents or his
moves toward one-man rule.
“It’s not our place to sort of
comment on or provide the
good and the bad. We don’t
look at it that way,” Discovery
representative Karun Arya
said. “We’re in the business of
infotainment.”
Many of these projects receive support from state arms
linked to government propaganda departments. Such partnerships give China more say
in how its story is told—with
the imprimatur of a respected
media outlet or producer.
Discovery said the “Time of
Xi” project was conceived by
its team and received help
with research and access from
China Intercontinental Communication Center, a company
belonging to the Communist
Party Propaganda Department,
whose role isn’t listed in the
credits.
CICC, which bought the distribution rights for China and
other Asia-Pacific regions outside Discovery’s footprint,
didn’t respond to a request for
comment on its foreign production partnerships.
A poster of Xi Jinping looks down at Beijing pedestrians.
Maximize the Impact of
Your Employee Health Program
Visit www.heart.org/workplacehealth to learn more and enroll today.
The American Heart Association’s new Workplace Health
Achievement Index is a national continuous quality improvement
program called for by its CEO Roundtable. It assesses and
recognizes the health of the workplace and the workforce.
Because good health is good business.
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.
Monday, November 13, 2017 | A9
* * * *
WORLD NEWS
U.S.-Philippine Talks Set for Warmer Tone
Trump-Duterte
meeting follows
American support for
fight against militants
MANILA, Philippines—President Rodrigo Duterte meets
Monday with President Donald
Trump, with the Philippine
leader’s longstanding animosity toward the U.S. tempered
by Mr. Trump’s implicit support of his war on drugs and
by American help in crushing
Islamic State-backed fighters
who occupied a southern city.
Mr. Duterte lobbed repeated
verbal attacks at the U.S. when
he took office in June 2016,
swiftly clashing with thenPresident Barack Obama on
human-rights issues. Relations
have improved under Mr.
Trump, who will be meeting
Mr. Duterte at a summit of
Asia-Pacific leaders under the
umbrella of the Association of
Southeast Asian Nations.
Mr. Duterte, the summit
host this year, greeted Mr.
ATHIT PERAWONGMETHA/REUTERS
BY JAKE MAXWELL WATTS
Philippine President Rodrigo Duterte spoke at the Asean dinner in Manila on Sunday.
Trump with a handshake at a
gala dinner Sunday for summit
participants in Manila. When
they meet on Monday, “there
will be a lot of discussion
about renewal of the U.S.-Philippines alliance and re-energizing that alliance,” a U.S. ad-
ministration official said in a
briefing.
The relationship was helped
by a state-of-the-art U.S.
drone and other aircraft that
provided surveillance for the
Philippine armed forces as
they battled for five months to
retake the city of Marawi from
hundreds of militants linked to
Islamic State. The Philippine
military called the U.S. support a game-changer.
A spokesman for Mr. Duterte said that he and Mr.
Trump
“were
genuinely
pleased to have finally met”
very briefly at the Asia-Pacific
Economic Cooperation summit
in Vietnam. Mr. Duterte said he
and the American leader
“share so many ideas.”
The U.S. ruled the Philippines between 1898 and 1946
and the country was home to
some of the largest overseas
U.S. military bases before they
were closed amid rising opposition in the early 1990s. Many
Filipino elites are educated in
the U.S., and large numbers
have family in both countries.
The meeting is a chance for
two men viewed at home as
antiestablishment populists to
find common ground, analysts
say. The Philippine leader “is
street smart,” said Clarita Carlos, professor of political science at the University of the
Philippines. “Trump and Duterte are both straight talkers,” she said. “They should
get along well.”
While Mr. Duterte has been
open about his ambivalence
toward the U.S. relationship,
which he says has been unfair
to the Philippines, his declaration that he would establish a
separation from the U.S.—
made during a visit last year
to China, increasingly America’s strategic competitor in
the region—hasn’t panned out
in policy.
Still, Mr. Duterte also has
sought closer ties with China
and Russia in what he calls a
new “independent foreign policy.”
There are still issues on
which the Philippines and the
U.S. don’t agree, such as the
violent crackdown on drug use
by Mr. Duterte that activists
say has led to the deaths of
more than 13,000 people, including many allegedly executed by police. Mr. Duterte
denies that police have been
involved in extrajudicial killings and his government disputes the body count.
U.S. officials say Mr. Trump,
who hasn’t openly criticized
the drug war, intends to bring
it up and discuss “ways in
which that war could be prosecuted that conform with Philippine law and international
norms for human rights.”
Another thorny issue is security in the South China Sea.
BY ALASTAIR GALE
yang, but said the drills would
enable them to prepare fully
for conflict.
“The message is that we are
ready to defend our national
interest and our allies,” said
Rear Adm. Marc Dalton, commander of the combined exercises.
Overwhelming air power
would be central to winning
any conflict with North Korea
quickly, defense analysts say.
Most jet fighters on the three
U.S. carriers are F-18s, which
could be launched and reach
North Korea within minutes of
such a command being given.
In a war with North Korea,
initial strikes would likely be
made to destroy ground-to-air
missile units which could
threaten U.S. bombers, as well
as ballistic-missile launch sites
SIMON DAWSON/REUTERS
ABOARD THE USS RONALD
REAGAN—Three U.S. aircraft
carriers with around 200 jet
fighters in total sailed in close
formation with several other
warships in the Sea of Japan
on Sunday, the largest display
of U.S. naval firepower in the
region for a decade as nearby
North Korea trades war threats
with Washington.
In exercises due to run
through Tuesday, the U.S.
forces, joined by Japanese and
South Korean military vessels,
are training for combined operations that would enable them
to stage indefinite large-scale
round-the-clock offensives, officials on board lead carrier the
USS Ronald Reagan said.
The combined drill, the first
three-carrier operation in the
western Pacific region since
2007, has been highlighted by
President Donald Trump as a
warning to North Korea as that
country continues to ramp up
its nuclear program. In comments last week in Seoul, Mr.
Trump said the carriers were
among major military assets
“we hope to God we never have
to use.”
In the latest exchange,
North Korea’s state media over
the weekend called Mr. Trump
a “warmonger,” while the president on Twitter criticized
Pyongyang’s personal insults
against him.
Officials coordinating the
exercises a few hundred miles
southeast of North Korea’s
coast were careful not to single
out the standoff with Pyong-
Softbank has been trying to gain a 14% stake in Uber, according to people familiar with the matter.
UBER
Continued from Page One
one staying in is focused on
the possibilities of the future
and everyone mired in the
past and present can move
on.”
Directors have used the
proposed SoftBank deal to
push through a sweeping set
of board reforms sought by
investors. The reforms only
kick in if the investment deal
is consummated.
“We believe this agreement
is a strong vote of confidence
in Uber’s long-term potential,” an Uber spokesman said
in an emailed statement.
“Upon closing, it will help fuel
our investments in technology
and our continued expansion
at home and abroad, while
strengthening our corporate
governance.”
SoftBank, leading a consortium of investors, has been
trying gain at least a 14%
stake in Uber, according to
the people familiar. A twopronged investment could total $10 billion, with SoftBank
directly contributing at least
$1 billion, buying shares that
reflect the company’s valuation at $68 billion, and buying
the rest of the stake from investors at a lower price, the
people said.
Details of the tender offer
are still to come—pricing remains an issue—and could fail
to entice enough investors to
sell their stakes. If SoftBank
doesn’t garner at least 14%,
the Japanese investor could
scuttle the deal, people familiar with the matter have said.
Benchmark agreed to put a
hold on its lawsuit against Mr.
Kalanick, while the former
CEO will allow directors to
vote on any future appointees
he makes to the board for the
three seats he oversees, these
people said.
The investor, with a board
seat and a stake valued at
more than $8 billion, had
sued Mr. Kalanick to turn control of his seats back to the
board, a move that divided directors. Mr. Kalanick was
granted control of three board
seats as part of a $3.5 billion
investment from a Saudi
wealth fund in 2016.
Once the deal is complete,
Benchmark will drop its suit,
said the people familiar with
the matter.
For SoftBank, the deal
would give it a stake in all of
the world’s largest ride-hailing firms. It also already has
directors on the boards of ANI
Technologies Pvt.’s Ola and
GrabTaxi Holdings Pte., which
compete with Uber directly in
India, and Singapore and
Southeast Asia, respectively.
SoftBank still faces hurdles
in its goal of taking a commanding stake in Uber. Benchmark, which controls about
13% of Uber, privately has wavered on whether it will sell
based on the valuation of the
tender offer, and Mr. Kalanick
has indicated he plans to retain all of his roughly 10%
stake, according to the people.
Benchmark has said it believes Uber could be valued at
$100 billion, though talks on
the tender offer have centered
on a valuation of around $50
billion, according to the people.
Upon completion of a deal,
a set of governance reforms
would kick in, including eliminating the outsize voting
power of early investors and
adding six seats to Uber’s 11person board, two slated for
SoftBank, the people said.
The voting provision effectively would limit Mr. Kalanick’s power by creating equal
voting power among shareholders. Still, with oversight
of three board seats, he would
remain an influential force at
the company he co-founded
eight years ago, and he remains in close contact with
Mr. Khosrowshahi and other
executives.
Mr. Kalanick in September
unilaterally filled two board
seats, which surprised fellow
directors and the new CEO.
He named two well-known executives in former Xerox
Corp. CEO Ursula Burns and
former CIT Group Inc. CEO
John Thain.
Uber’s board has set a
deadline to hold an initial
public offering sometime in
2019. That gives the company
and its new CEO some time to
repair its damaged reputation,
fill a number of top executive
roles, resolve a series of
prominent lawsuits and improve financial losses that totaled more than $3 billion last
year.
that might target the U.S. and
its allies.
“It is important for the U.S.
to have the ability to conduct
multiple coordinated strikes simultaneously with as many assets it can muster,” said Ridzwan Rahmat, senior defense
and security analyst at Jane’s.
The mood on the ship appeared relaxed on Saturday
evening, pizza-and-chickenwings night for the kitchens,
which produce around 18,000
meals a day for the almost
6,000 crew, pilots and others
on board.
After dinner, some crew
took part in touch rugby training. Others watched screenings
of horror movie “Child’s Play”
or Vietnam War movie “Apocalypse Now”.
Capt. Michael “Buzz” Don-
U.S. NAVY/AGENCE FRANCE-PRESSE/GETTY IMAGES
Allies Drill With American Carriers
The three U.S. aircraft carriers, shown in an image from the Navy.
nelly, who took part in the last
three-carrier exercise in the
western Pacific, near Guam,
said the latest drills were in
the Sea of Japan because of the
importance of the area. While
two carriers and their support
groups could sustain joint op-
erations continuously for about
a month, an additional carrier
removes the limit.
Asked if the latest exercise
sends a message to countries
that challenge the U.S., Capt.
Donnelly said: “I would expect
it certainly has to.”
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.
A10 | Monday, November 13, 2017
IN DEPTH
CHINA
responses a month for the
ads—he filled two diaries keeping notes on the process—but it
still took close to two years to
find the right match.
The biggest barrier was usually astrological incompatibility.
He diligently plugged the birth
dates of all potential mates into
an online calculator that would
score compatibility on a 36point scale. Anyone scoring below 20 would be emailed a
form rejection letter: “Thanks
for the proposal. We discussed
the matter. But the result is not
positive. Sorry.”
He also looked for someone
from his own caste, who was
educated and working, and who
was good looking—and not as
tall as his son.
Only about five proposals
each month were promising
enough to follow up with a
face-to-face meeting. He would
meet with the prospective
bride’s parents at a nearby mall
over tea and watch how they
carried themselves and how
they talked.
He rejected one of the fami-
lies because the father asked
about the size of his home.
“Are you marrying your daughter to the house or to my son?”
he asked him.
He also turned down a
woman because she wanted to
meet his son directly, a normal
demand on marriage websites
but rare with the traditionalists
who use newspapers. “On the
websites, the girls are too advanced,” he said. “They would
try to approach the boys themselves and bypass me, which I
do not like.”
In January, he got a response to his ad that looked
promising. The youngsters’
horoscopes were compatible,
the woman was the right age
and height, and even Mr. Agarwal’s spiritual adviser liked the
match.
Mr. Agarwal met with the
parents, and they felt the
match would work. Then Mohit
met the young woman, and
they closed a deal. Their wedding is scheduled for Dec. 10.
—Vibhuti Agarwal
contributed to this article.
XINHUA/ZUMA PRESS
help found Hikvision in 2001, in
an arrangement that gave the
government-backed lab a 51%
stake. Although the size of that
stake has since declined, the
government only began to more
actively aid the company in the
past few years.
CETC didn’t respond to a request for comment.
Contracts from Chinese government agencies propelled the
company’s rise. It helped with
security at the 2008 Beijing
Olympics. In 2011, the company
said the value of contracts for
its “safe city” camera project in
Chongqing, a large city in
China’s southwest, reached $1.2
billion. Its cameras are now
ubiquitous on the city’s streets.
China’s President Xi Jinping,
who has made high-tech security a priority, visited the firm’s
headquarters in 2015. Since
that year, Hikvision has received major loans from two of
China’s three policy banks,
which finance state development goals.
Zheng Yibo, a Hikvision vice
president, says CETC has no
role in Hikvision’s day-to-day
operations.
Hikvision’s head of research,
Pu Shiliang, holds a leadership
position at a Hangzhou laboratory run by the Ministry of
Public Security, China’s police
force. The lab explores ways authorities can leverage data
gathered by the company’s
cameras and other sources to
improve policing, according to
the lab’s website.
China has been rolling out
new technologies to monitor its
people in ways that would unsettle many in the U.S. and the
West. Unfettered by privacy
concerns or public debate, Beijing’s leaders have introduced
facial-recognition technology
era-equipped drones and cameras programmed to alert
authorities to large gatherings.
The company’s consumer
camera line, called “EZVIZ,” can
sync with a smartphone app.
One softball-sized device can
detect noises—a dog barking
loudly or the sound of a door
opening—and automatically direct its lens at the source of the
disturbance, sending an alert to
the phone.
Global sales of surveillance
equipment has increased 55% in
the five years through 2016, according to consulting firm IHSMarkit. By pricing cameras below those made by Western
competitors, Hikvision has become the top seller of surveillance equipment in Europe and
No. 2 in the U.S., according to
IHS-Markit and other industry
analysts. Its cameras frequently
are sold without the Hikvision
name and are rebranded by U.S.
distributors—a frequent practice in the industry.
This year, Hikvision opened
research-and-development offices in Silicon Valley and Montreal. It plans to employ 350
people in North America by
year’s end and 800 by 2022,
the company says.
Fort Leonard Wood, an Army
base in Missouri’s Ozarks, uses
Hikvision cameras in its security system, according to the
Chinese company and NexGen
Integration, a U.S. company
that handled the installations.
The base offers basic combat
training and includes a school
for chemical, biological and nuclear-defense drills.
Chris Nickelson, NexGen’s
owner, says none of his customers have raised any issues
about Hikvision gear. The army
base referred questions to the
U.S. Army’s installation management command public affairs office, which said it
doesn’t discuss equipment or
capabilities, but added that
“any equipment or software
that goes on a military network
is thoroughly tested for security vulnerabilities.”
At the U.S. Embassy in Kabul, Afghanistan, Hikvision
Contracts from
Chinese government
agencies propelled the
company’s rise.
and other surveillance measures in a vast experiment in
social engineering. Their goal is
to influence behavior and identify lawbreakers.
At Hikvision’s Hangzhou
showroom, walls are lined with
monitors and video cameras
that employ artificial intelligence to recognize objects and
sounds from afar and to produce visible images despite pollution or darkness. Hikvision’s
“Darkfighter” thermal camera
enables it to record under ultralow light conditions, the
company says. Its “Blazer Pro”
server, it says, allows licenseplate recognition. It offers cam-
ERIC BELLMAN/THE WALL STREET JOURNAL
ADS
Continued from Page One
are the best way. There is no
chance of mischief.”
The newspaper ads use no
names or photos and convey
limited personal information.
Once respondents reveal they
are strong candidates, more details are shared. A majority of
marriages in India are still arranged, often with parents
meeting before the potential
bride and groom get a chance
to see each other.
“The newspaper is a more
sincere way of groom hunting
because it’s mostly read by elderly, senior and serious citizens,” said K.P. Chakraborthy, a
retiree who has spent hundreds
of dollars on ads to find a new
match for his daughter, who is
divorced. “Marriage is an alliance between two families, and
it is only through newspapers
that you come across decent
families.”
The short postings list the
THE WALL STREET JOURNAL.
Surveillance gear on display, above, at Hikvision’s Hangzhou office. Heat-mapping technology, below, can be used for crowd counting.
HIKVISION
Continued from Page One
is stunning,” says Carolyn Bartholomew, chairwoman of the
U.S.-China Economic and Security Review Commission, which
was created by Congress to
monitor the national-security
implications of trade with
China. “We shouldn’t presume
that there are benign intentions
in the use of information-gathering technology that is funded
directly or indirectly by the
Chinese government.”
Some security vendors in the
U.S. refuse to carry Hikvision
cameras or place restrictions
on their purchase, concerned
they could be used by Beijing to
spy on Americans. The General
Services Administration, which
oversees $66 billion of procurement for the U.S. government,
has removed Hikvision from a
list of automatically approved
suppliers. In May, the Department of Homeland Security issued a cybersecurity warning
saying some of Hikvision’s cameras contained a loophole making them easily exploitable by
hackers. The department assigned its worst security rating
to that vulnerability.
The concerns about Hikvision are reminiscent of the controversy surrounding Chinese
technology giant Huawei Technologies Corp., whose telecom
gear was effectively banned in
the U.S. after a 2012 congressional report raised fearsits
networking equipment could be
used to spy on Americans. The
company has repeatedly dismissed such concerns.
Hikvision says its equipment
is safe and secure, that it follows the law wherever it does
business and that it worked
with Homeland Security to
patch the flaws the agency
cited. It says it “cannot in any
way access and control the content of the video cameras.” It
says the vast majority of its
products are sold through
third-party vendors, meaning it
often doesn’t even know where
they wind up.
“Hikvision is a business,”
said Chief Executive Officer Hu
Yangzhong. “It would be impossible for us to add a backdoor
to our cameras, as that would
damage our business.”
Vulnerabilities in surveillance cameras have become
more of a concern as internetconnected devices become
more prevalent. Cameras can be
a weak link in an organization’s
information-technology network, potentially opening
“backdoors”—ways to gain access by bypassing security
mechanisms—for hackers, including state-backed ones.
Last year, hackers took control of hundreds of thousands
of cameras, including many
made by a Chinese rival of
Hikvision, to launch a huge “denial of service” attack that security experts said made sites
run by Amazon.com Inc., PayPal
Inc. and Twitter Inc. unavailable for hours.
Hikvision grew out of a government laboratory started a
half-century ago. Its largest
shareholder is China Electronics Technology Group Corp., or
CETC, a state-owned defense
and military electronics manufacturer. Its biggest individual
shareholder is Gong Hongjia, a
Hong Kong billionaire and university classmate of top Hikvision executives. Some executives are Communist Party
members also employed by
subsidiaries of CETC, according
to securities filings in China.
Mr. Gong said in an interview that he provided capital to
public security.”
A spokesman for Italy’s government procurement agency
said the supplier “guaranteed a
level of security appropriate to
the risk,” but that “no one can
be absolutely sure that a participating firm has not surreptitiously inserted backdoor devices
and
security
vulnerabilities for malicious
purposes.”
Hikvision says the Italian
legislator’s concerns about security risk are “totally unfounded and absurd.”
Nathan Brubaker, an analyst
at U.S. cybersecurity firm FireEye Inc., says the software vulnerabilities identified by the
Department of Homeland Security could make those Hikvision
cameras prone to a hacking attack similar to the “Mirai” denial-of-service attack on the internet last year.
Security experts say backdoors that allow outsiders to
bypass security protections are
often difficult to identify. Such
vulnerabilities can be accidental—the result of flaws in the
software’s original design or in
updates.
The Hikvision flaws identified by the Department of
Homeland Security affected
more than 200 camera models
and potentially tens of millions
of shipped devices, estimates
John Honovich, editor of IPVM.
They made it possible for outsiders to hack into internetconnected Hikvision cameras in
just a few steps, according to
Mr. Honovich and FireEye, the
cybersecurity firm. Hikvision
acknowledged the flaws affected some cameras, but dismisses Mr. Honovich’s assertions
as
“unfounded
insinuations and hearsay.”
Hikvision says it cooperated
with the DHS to fix the problem
and directed customers to a
software fix. “This issue did not
cause a noticeable impact on
Hikvision’s overseas business,”
a company spokeswoman says.
Genetec, a Canadian security
company with a U.S. presence,
requires customers who want
to buy Hikvision cameras to
sign a waiver disclaiming
Genetec of liability in the event
of a security breach. Pierre
Racz, the Montreal-based company’s chief executive, says
concern over cameras made by
“companies owned or controlled by the Chinese government” and “Beijing’s reputation
for aggressive cyberespionage”
led him to require the waiver.
Hikvision says “linking
Hikvision with espionage is
simply outrageous and completely unfounded.”
Hikvision has been selling
cameras to the Memphis police
department since 2007. Officers
can observe streets from a central command center. Some devices use advanced lighting
technology to produce clear images even in the middle of the
night.
“We probably make up to
100 arrests every year” because
of the cameras, including for
car theft, robbery and murder,
says Lieutenant Joseph Patty II,
who manages the system.
He says the city started using the cameras long before
concerns about hacking came
into play. The department uses
a decentralized network where
cameras aren’t connected to the
police mainframe computer, he
says.
“At the end of the day, they
are the No. 1 camera manufacturer in the world,” says Lt.
Patty. “They make a lot of cameras and many people use
them, even if they don’t say
Hikvision on the product.”
—Liza Lin and Wenxin Fan
contributed to this article.
R.K. Agarwal, with ads.
important basics for matchmakers: caste, birth date, education level, height, complexion
and salary. Most are an alphabet soup of acronyms and abbreviations.
Potential brides are B’ful and
grooms H’som. SM4 is suitable
match for, and Send BHP means
send biodata (or a résumé),
horoscope and photo. W’stld is
well settled, meaning well paid.
Wkg is working. PQ means professionally qualified, T’tot is a
teetotaler, and a PSU is a public
sector unit—where jobs impress.
The ads also often list the
father’s job—fthr sr bnk offcr,
or father senior bank officer,
for example.
The personals also have
their own unique vocabulary. If
a woman is listed as “homely”
it means she doesn’t work. If a
man is issueless (abbreviated
as i’less) after a divorce, it
means he doesn’t have children.
Potential mates listed as having
a “wheatish” complexion have
light-brown skin.
The space in the ad around
the text—up to a full page—can
imply wealth. Some of India’s
most affluent will spend thousands of dollars for prominent
ads.
The Times of India, an English-language paper read by
those considered upper crust,
is prime hunting ground. A basic ad for one week in its
“Times Soulmate” weekly in-
cameras were installed “to
monitor nonsensitive electrical
closets for theft prevention,”
says a State Department
spokesperson, referring to closets housing electronics equipment.
Last year, the security-industry trade publication IPVM published a procurement order for
several dozen Hikvision cameras, revealing their presence in
the Kabul embassy. The government canceled the order in September 2016 and removed the
Hikvision cameras already in
the embassy.
A State Department official
says that was because security
officials at the department, who
are supposed to be notified of
new security-related installations, weren’t given a heads up
about the purchase.
In a written statement,
Hikvision said it had no knowledge of the Kabul project’s particulars “on the end-user level,”
and that “accepting or removing particular products is always at the discretion of the
end-user.”
Shortly thereafter, the Gen-
Party Ties
Hikvision is
part-owned by the
Chinese government
through a series of
entities that report
up to the body that
regulates
state-owned
enterprises.
Electronics
research
laboratory
eral Services Administration removed Hikvision from a list of
automatically approved suppliers, companies that make their
products in countries that have
certain trade agreements with
the U.S. The agency says it
nixed the firm after it was
alerted the products were manufactured and assembled in
China, which isn’t on the list.
U.S. government agencies that
want to buy Hikvision gear
can’t go through the GSA system, but have to take extra
steps such as showing the
items are fairly priced.
Hikvision says its gear was
listed on the GSA by two resellers, which it says it hadn’t authorized. Hikvision says it
asked the resellers to remove
the products from the GSA list.
In January, Italy’s government awarded a $49 million
contract to a supplier in a deal
that included the installation of
Hikvision cameras at some
state buildings. The deal was
publicly questioned in June by
Italian legislator Arianna Spessotto, who said the cameras
“could pose a risk to national
Stateowned Assets Government body
Supervision and that oversees stateAdministration owned companies
Commission
SASAC owns
100% of CETC
China
State-owned
Electronics manufacturer of military
Technology electronics equipment
Group
100%
100%
52nd
Research
Institute
China
Electronics
Technology
HIK Group
2%
Industrial and
electronics
research and
development
40%
Hangzhou
Hikvision
Digital
Technology
Sources: Hikvision; staff reports
sert in New Delhi costs around
$55.
The number of print ads has
fallen from peaks about 15
years ago. The Times of India
used to have 12 pages of ads in
some of its regional editions.
Today it usually has around
half that, people at the paper
said.
Mr. Agarwal, the matchmaking father, stuck to the basics in
the ad for his son, Mohit: caste,
age, educational degrees and
height. The ad also mentions
Mohit works for an international company for an impressive salary.
Over time, Mr. Agarwal tinkered with the wording. He
switched out his phone number
for his email address because
he was getting too many responses. He added that his son
was handsome. Then the retired state power company
manager tossed in a bit of his
own credentials, mentioning
the potential groom’s father
was a high-ranking government
officer.
He said he got 150 or 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.
Monday, November 13, 2017 | A10A
NY
* *
GREATER NEW YORK
BY PAUL BERGER
Wanted: Chief executive
for one of the nation’s largest infrastructure programs.
Must be willing to work for
two governors and alongside
three public agencies. Just 10%
of $30 billion in necessary funding secured. Pay cut
may be required.
The Gateway Program Development Corp., whose mission is nothing less than to improve
and
expand
transportation for hundreds of
thousands of daily passengers
on Amtrak and NJ Transit between Newark and New York
City, is struggling to find a
leader.
The corporation’s trustees
had hoped to appoint a chief
executive by the end of this
summer. But they are still
searching, and now say they
aim to name a new leader by
the end of the year, according
to those involved in the
search.
If a decision can’t be
reached soon on a permanent
CEO, a person familiar with
the hiring process said an interim leader may be hired to
replace the current interim
chief, who has held the job
since July 2016.
$400K
Approximate minimum salary for
the CEO of the Gateway Program
“The project is not suffering
for this,” said the person familiar with the process, noting
that environmental and financial planning for key stages of
the work continue to advance.
Gateway’s interim executive
director, John Porcari, divides
his time between Gateway and
WSP USA, the engineering and
consulting firm where he is
president of U.S. advisory services. He said he had expected
to step down from Gateway by
now.
“The trustees have interviewed a broad slate of candidates for CEO and we hope to
make an appointment before
the end of the year,” Gateway’s
Chairman, Richard Bagger,
said in a statement.
Gateway encompasses a series of multibillion-dollar projects to upgrade the rail network between Newark and
New York City, while doubling
capacity from two tracks to
four. It includes digging a new
tunnel under the Hudson River
so the current century-old tunnel, which was damaged in
2012 by superstorm Sandy, can
be repaired.
Replacing a temperamental
swing bridge over the Hackensack River that single-handedly stalls train traffic on Amtrak’s
Northeast
Corridor connecting Washington and Boston, also is part of
the program.
Eventually, the Gateway
program will require the expansion of New York Penn Station—plagued by delays, in
part because it has been operating over capacity for years—
to cover an additional block on
Midtown Manhattan’s west
side.
The Gateway project is expected to take more than a decade to complete.
Given the size and scope of
the program, and some of the
unique institutional issues, the
pool of executives capable of
overseeing such an enterprise
is small. The ideal candidate
must have the diplomatic skills
to liaise between state and
federal agencies, and the project-management skills to steer
multibillion-dollar projects.
The salary range, said to be
upward of $400,000 by the
person familiar with hiring, is
high for the public sector, but
low for private-sector management of a program this size.
MIKE GREENLAR/THE SYRACUSE NEWSPAPERS/ASSOCIATED PRESS
Gateway Struggles to Fill CEO Job
Ben Walsh, who isn’t registered with any political party, spoke to
supporters last week after being elected mayor of Syracuse.
Independent’s Win
In Syracuse Spurs
Hopes of Others
STEVE REMICH FOR THE WALL STREET JOURNAL
BY MIKE VILENSKY
Maureen Rover with a group of kindergartners. She founded a literacy program in New York City for poor children at high risk of failure.
Program Gives Children a Leg Up on Literacy
BY LESLIE BRODY
Maureen Rover was having
her usual coffee and muffin
for breakfast one morning in
the late 1990s when a newspaper story about New York City
state test scores caught her
attention. She was dismayed
to see that a third of the city’s
public-school children were far
behind in reading at the crucial gateway of third grade.
Out went her plan to relax
in retirement after a career in
banking and educational publishing. Instead, Ms. Rover,
now 74 years old, founded the
Reading Team, a nonprofit
that brings free literacy lessons and books to poor children at high risk of failure.
Launched in 2001, it has
grown to reach more than 800
children in Harlem, from preschool through eighth grade,
at P.S. 36 and a separate site
nearby. An independent study
in 2009 found the program
Reading Team Gets
Results, Study Finds
Sheldon Shuch, a former
city Department of Education
administrator in charge of literacy in Harlem, found in his
2009 study that the Reading
Team had positive effects, with
students who joined its preschool program going on to
read on grade level in third
grade and outperforming the
city overall on state tests.
He cautioned, however, that
the sample size was small and
many children left the group he
was tracking for a variety of reasons. Of the 302 students assessed in preschool, 79 remained
in the study 4½ years later.
“One could argue the kids
who dropped out were the
worst readers, or the best readers, who knows?” Mr. Shuch
said. “But Maureen [Rover] is
very sincere, she is really doing
important stuff, and she stuck
with the program, which is very
unusual. What she was doing is
very commendable.”
Other nonprofits also are
trying to tackle the literacy crisis in high-poverty neighborhoods. One called Teaching
Matters is helping 31 public elementary schools in the Bronx
develop its staff.
New York City Mayor Bill de
Blasio has dispatched literacy
coaches to high-need districts in
an effort to get all second-graders to read on level by 2026,
but skeptics say students won’t
make real strides until city public-school class sizes are smaller.
—Leslie Brody
had a significant impact.
Ms. Rover, a New Yorker
who volunteers as president of
the nonprofit, recently received an award from World of
Children, a California group
that honors five people around
the globe each year who make
a difference in children’s lives.
The $50,000 prize will go to
support the Reading Team,
whose $1 million annual budget is funded by a range of
foundations and donors.
What is key, Ms. Rover said,
is that the Reading Team
starts working with children
early, through partnerships
with a range of Harlem childcare centers. “When they’re 3
and 4, they still believe they
can do anything,” she said. In
the nonprofit’s after-school
program for later elementary
grades, the work is more difficult: “By the time they’re referred to us, they’re already
feeling they’re not very smart
or they’re not good kids bePlease see TEACH page A10B
The outcome of last week’s
mayoral race in Syracuse is
being hailed by independents
as a possible precursor to
more candidates carving paths
outside of the traditional political parties.
Ben Walsh, a 38-year-old
independent who has never
held public office, handily defeated his Republican and
Democratic rivals, a victory
that has earned comparisons
to figures such as Emmanuel
Macron, a political neophyte
who won the French presidency earlier this year by creating his own party.
“What happened to Macron
in France happened in Syracuse on a local level,” said
Ryan Clancy, an independent
and strategist for No Labels, a
national group that advocates
for political consensus. “We
would like to think this is indicative of a trend and it will
be reinforcing,” he added.
Syracuse’s new mayor-elect
isn’t registered with a party
but appeared on ballots on the
Reform, Independence, and
Upstate Jobs lines. He will become the only mayor of a
large city in New York not
elected as a Democrat or Republican.
Mr. Walsh, who served as
an aide to Democratic Mayor
Stephanie Miner and had
backed Gary Johnson on the
Independence line in the 2016
presidential election, initially
had discussions with both major parties, but wouldn’t agree
to register with either. Ms.
Miner will leave office in January after reaching her term
limit.
During his campaign, Mr.
Walsh vowed to put together a
diverse coalition focused on
improving quality of life as
part of his mayoral platform,
which ranged from weighty issues such as combating opioid
addiction and HIV/AIDS to
quirkier ideas like repealing a
ban against sledding on Syracuse city property.
“I’ve never been affiliated
with a political party, so I
thought to enroll in one for
the sake of running for mayor,
I wouldn’t be staying true to
myself,” he said.
Mr. Walsh appeared to be a
long shot in the seat of Onondaga County—which Hillary
Clinton won by more than 10
points in the 2016 presidential
election—until he won a writein campaign in the Independence Party primary, defeating
the party’s preferred candidate and securing the
party’s line for the general
election.
‘What happened to
Macron in France
happened in Syracuse
on a local level.’
Mr. Walsh then worked to
win endorsements from Democrats and framed himself as a
break from political brawling in a polarized era and city
with the slogan “Rise Above.”
“People here, like a lot of
people around the country, are
a little fed up with constant
fighting,” said Ed Riley, a 62year-old Syracuse developer
and registered Republican who
backed Mr. Walsh.
The city also is grappling
with a poverty crisis, a focus
of Mr. Walsh’s campaign that
helped him win over Democrats.
“I believe wholeheartedly
Ben is committed to the economic growth of the city,” said
Sharon Owens, a Democratic
activist in Syracuse who broke
with her party and endorsed
Mr. Walsh.
It helped that Mr. Walsh
had local name recognition as
the son of James Walsh, who
represented the Syracuse area
as a Republican congressman
for 20 years.
Ben Walsh’s success TuesPlease see RACE page A10B
“First Republic not only cares about their
communities, they care about the future
of the kids in those communities.”
COMMON SENSE MEDIA
James Steyer, Founder and Chief Executive Officer
(855) 886-4824 | firstrepublic.com | New York Stock Exchange symbol: FRC
MEMBER FDIC AND EQUAL HOUSING LENDER
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
A10B | Monday, November 13, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
N.J. Project Scraps Mall in Reboot
Literacy mentor Vanessa Maldonado from the Reading Team
helped student Sindou Diomande with his homework.
TEACH
Continued from page A10A
cause they feel lost or limited
in their abilities.”
By its tally, the Reading
Team said 79% of its students
in grades three through five
passed state tests in English
last spring, almost double the
rate for the city as a whole.
By another measure, the
Test of Early Reading Ability,
its preschoolers jumped from a
mean score in the 22nd percentile nationwide in fall 2016
to the 88th percentile by June.
That test looks at knowledge of
the alphabet and the ability to
construct meaning from print.
The Reading Team uses a
combination of small group
lessons, songs, puppets, storytelling and computer-based
lessons from Waterford Early
Learning, a software program
that adapts to each student’s
skills and pace. Students get
one-on-one help if they need it.
On a recent morning at P.S.
36, 11 prekindergartners sat in
three different circles, determined by their needs. Their
playful exercises were steeped
in the traditional approach of
phonics, or decoding words by
sounding them out. In one cluster, literacy mentor Mary Escalante held up a picture of a yoyo. “Can you make the sound of
a Y for me?” she asked,
prompting a chorus of “ya ya
ya” from her young charges.
Their homeroom teacher,
The new plans and
new partner reflect
the upheaval in the
retail industry.
The new plans and new
partner of this 418-acre project
in central New Jersey, now
called “Riverton,” reflect the
upheaval in the retail industry
across the country, as both
merchants and landlords adjust
to changing shopping habits
and growing e-commerce.
As many large traditional
mall chains cut store locations,
mall owners have been adding
dining and entertainment venues, fitness centers, medical offices and in some cases supermarkets to boost customer
visits. Owners also have incor-
99 *
G . $ 94.
porated apartments and office
space near or on their properties as a way to build in regular
customer traffic.
“The enclosed mall is still
viable, however the United
States has been over-stored
and over-malled for years with
almost four times the [retail]
density of other developed
countries,” said Michael Brown,
a partner in the retail practice
of A.T. Kearney, a strategy and
management-consulting firm.
“We don’t need more of them.”
Nationally, new retail construction has fallen over the
years, dropping to 92 million
square feet of stores and shopping-center construction starts
expected this year from 118
million square feet in 2014, according to Dodge Data & Analytics, a construction industry
research and software firm.
The updated Sayreville project calls for about 1 million
square feet of retail space,
roughly half the amount of retail space anticipated in a prior
version. The development also
will include 1 million square
feet of office space and about
CONNECTICUT
Budget Details Lure
Legislators to Capitol
5
RE
Rendering of a Sayreville, N.J., development that was reworked to create a downtown-like retail village.
GREATER NEW
YORK WATCH
O
DAY FFER
LI
74
HO
$
Betty Kouassi, said the small
group lessons helped build confidence. “They’re not fearful of
using the tools,” she said, “and
have a sense of ‘I can do it.’ ”
At P.S. 36, every K-2 class
comes to the Reading Team’s
room twice a week. Older students are referred by teachers
for after-school enrichment.
The project’s other venue is
located in a former hotel on
Adam Clayton Powell Jr. Boulevard in Harlem. Children from
some nearby child-care centers
go twice a week for 90 minutes. Its after-school program
also attracts students who
need extra help from 18 local
elementary schools for more
than three hours every weekday. Middle schoolers come on
Saturdays.
David McNeal said his son
started attending the Reading
Team daily in kindergarten
when he was behind in skill
level, and now he is on target
in third grade, despite his
challenges with attention deficit hyperactivity disorder.
“Not only are the children relaxed but they’re engaged,”
Mr. McNeal said.
The Reading Team’s literacy
mentors often are graduate students in education. They get 50
hours of training before starting, according to the program.
Ms. Rover didn’t expect to
be working so hard at the nonprofit at this point. “I accepted
it would take a while to raise
money,” she said, “but I’m a little bit surprised that I’m still
doing heavy lifting, 17 years in.”
Plans for one of New Jersey’s largest mixed-use developments once called for a massive “fortress mall,” a 2.2
million-squarePROPERTY foot building
clad with giant
digital screens
rivaling Las Vegas and Times
Square, according to a 2012
marketing video.
Fast-forward five years: The
venture behind the $2.5 billion
Sayreville development has
brought in a new partner,
slashed the amount of retail
space and jettisoned the mall
concept in favor of a downtown-like retail village that
mixes shops, restaurants, offices and apartments.
“Retail used to stand alone,
but now in many cases, it’s not
able to stand alone,” said
Mark Toro, a managing partner at North American Properties, which recently joined the
development venture. “Here
you will have, as on a city
street, storefronts one after
another and a pedestrian experience that has much more
appeal than the sidewalk of a
shopping center or the interior of a mall.”
WAKEFIELD BEASLEY & ASSOCIATES
STEVE REMICH FOR THE WALL STREET JOURNAL
BY KEIKO MORRIS
9
10 (8 oz) Top Sirloin Steaks
(#V277) Now $74.99*
Connecticut lawmakers aren’t
done yet with the state budget.
There are tentative plans for
members of the Senate and
House to return to Hartford, the
state capital, this week—the
Senate on Tuesday and the
House on Wednesday—to make
several changes to the recently
passed, two-year, $41.3 billion bipartisan budget.
Lawmakers are expected to
weigh compromise language being
crafted by Democratic Gov. Dannel
Malloy and the Connecticut Hospital Association that is supposed
to ensure the state receives as
much as $1 billion in federal revenue. The money is tied to a tax
on hospitals as part of a federal
reimbursement formula.
Legislators also are expected
to fix language that held up
$26.4 million in elderly rental assistance, as well as some other
changes described as minor.
—Associated Press
2,000 residential units of both
apartment and single-family
homes—the same amount included in prior plans.
The site, located on the Raritan River and along several
highways, will include a marina
and two hotels.
While apartments, singlefamily housing and office space
have made up a significant portion of the development’s plans
since its early stages, these elements had been separate, surrounding a traditional mall and
big-box stores and accompanied by a sea of parking.
PGIM Real Estate, the realestate business of Prudential
Financial Inc., has been an investor in the site since 2008
and had formed the previous
joint venture with O’Neill Properties Group.
It won support from local
and state officials and invested
millions of dollars to clean up
the site, once owned by a paint
manufacturer.
In March, PGIM reached an
agreement to acquire O’Neill
Properties’ stake in the development for an undisclosed
RACE
Continued from page A10A
day stands in contrast to others independents around New
York.
In the New York City mayoral election, no candidate
outside of the two parties
scored more than 3% of the
vote. Bo Dietl, an independent
who appeared in two televised
debates, scored just 1%.
Former New York City
Mayor Michael Bloomberg ran
his first race as a Republican
and then became unaffiliated,
but he maintained the GOP
ballot line in his elections.
Rachel Honig, who lost a
New York City Council race
while running without a major
party, said Mr. Walsh’s win is
“absolutely hopeful, but…just
the start,” adding that candidates without a party still often lack endorsements and donations.
State University of New
amount. North American Properties was tapped as a new
partner because of its record
developing suburban mixed-use
communities with an urban
vibe and pedestrian-friendly
streetscape, Mr. Toro said.
The Sayreville development’s previous plan received
approvals, as well as a $223
million Environmental Redevelopment & Growth Grant from
the New Jersey Economic Development Authority. The new
venture, due to be completed in
2021, will have to get approvals
from local and state agencies
for the amended plan and, afterward, will begin the process
of securing financing. It already has the support of Sayreville Mayor Kennedy O’Brien.
Mr. O’Brien, now in his fifth
term, began working toward
redeveloping the former industrial property almost two decades ago with county officials.
“All things go in a circle,”
Mr. O’Brien said. “For me, Main
Street is something that is very
comfortable and familiar to me,
but for some of my kids it’s going to be a new experience.”
York political scientist Gerald
Benjamin said New York villages and school boards often
elect nonpartisan leaders, but
there is little precedent for an
unaffiliated mayor in a major
jurisdiction.
Located between Albany
and Rochester, Syracuse is one
of upstate New York’s largest
cities, with some 150,000 people. In the early 1900s, the city
elected a mayor on the Progressive line, which was affiliated with President Theodore
Roosevelt.
Nick Troiano, an independent and director of the Centrist Project, a group that
backs independent candidates,
was in contact with Mr. Walsh
and cheered the outcome. Mr.
Troiano said the environment
is “primed” for independents
to succeed because both parties poll poorly.
“But it takes a credible individual to be competitive because voters want to know
they’re not wasting their
votes,” he said.
Jets Lose in Tampa, Fall to 4-6
NEW YORK
10 top sirloin
STEAKS FOR $74.99* AND RECEIVE
10 free STEAkburgers
ORD E R BY NOON (ct) DEC 19 th
F O R
C H R I S T M A S
D E L I V E R Y
KansasCitySteaks.com
SEARCH PRIORITY CODE: A712W4
OR CALL
8 00 793 9144
Offer expires 12/31/2017. *$12.95 Shipping applies
to standard delivery only. Limit of 5 shipments per
customer. Steaks and 10 (4 oz) Steakburgers ship
in the same cooler to the same address. Additional
shipping charges apply for Alaska and Hawaii.
Not valid with other offers. While supplies last.
Medical Marijuana
Approved for PTSD
New York Gov. Andrew
Cuomo signed legislation Saturday to add post-traumatic stress
disorder to the list of ailments
that legally can be treated with
medical marijuana.
The PTSD bill was part of a
package of legislation Mr. Cuomo
signed to mark Veterans Day.
“Our veterans risked their
lives in order to defend the ideals and principles that this nation
was founded upon and it is our
duty to do everything we can to
support them when they return
home,” Mr. Cuomo said.
The Democratic governor said
19,000 New Yorkers with PTSD
could be helped by medical marijuana. The potential beneficiaries
include veterans, as well as police officers and survivors of domestic violence, crimes and accidents, Mr. Cuomo said.
New York’s medical-marijuana
law allows patients with illnesses
including cancer, AIDS and Parkinson’s disease to use nonsmokable forms of the drug.
—Associated Press
STEVE NESIUS/ASSOCIATED PRESS
p u r c h a s e
TAKEN DOWN: Jets linebacker Demario Davis stopped Buccaneers
running back Doug Martin on a play Sunday, but New York still
lost the away game 15-10. Next week is a bye week for the Jets.
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.
LIFE&ARTS
Monday, November 13, 2017 | A11
On ‘The Good Doctor,’ Freddie Highmore plays a gifted doctor with autism. Antonia Thomas and Nicholas Gonzalez, below center and right, also star in the medical drama.
TELEVISION
A Show Redefines the TV Hero
The recipe for the surprise ABC hit about a doctor with autism that has outperformed ‘This Is Us’ and ‘NCIS’
BY JOHN JURGENSEN
FEW TV LOVERS would associate
broadcast networks with innovation in 2017. But ABC’s “The Good
Doctor” is the latest proof that the
old networks still can conjure a
new drama that resonates with
viewers, just like HBO and Netflix
do, every so often.
“The Good Doctor” is the only
runaway hit among the 13 dramas
the big over-air broadcasters have
unveiled this fall. Now the industry is analyzing what made it click
when so many others have failed
to take off.
The show revolves around a
young physician in San Jose, Calif.,
with autism spectrum disorder. It
made its debut Sept. 25 on ABC and
is averaging 17.5 million total viewers an episode—more than established chart-toppers like NBC’s “This
Is Us,” the breakout hit from last
season, and CBS warhorse “NCIS.”
Since so many other shows
struggle to get noticed, people in
the industry can only speculate why
one turns into an apparent smash.
One take: Like “This Is Us,” a drama
offering a warm weather system of
family emotions, “The Good Doctor”
is an uncynical alternative to the
grim happenings in many other TV
series and on the news.
A more important factor in the
success of “The Good Doctor” may
be the way it switches up the familiar formula of a medical drama,
using a character who doesn’t
speak or act like a hero.
‘The Good Doctor’
ABC, Mondays at 10 p.m. ET
THE PLOT: A surgical resident with
autism balances medical brilliance with
interpersonal challenges.
THE AUDIENCE: 17.5 million total
viewers an episode.
WHY IT’S WORKING: A very different
kind of doctor changes up the familiar
rhythms of a medical drama.
ABC (2)
Surgical resident Dr. Shaun
Murphy, played by Freddie Highmore, has autism and savant syndrome, which allows the character
to zero in on medical details that
aren’t apparent to other people.
He also starts out with zero bedside manner and difficulties in
navigating hospital protocol and
delivering sensitive diagnoses.
Within seconds of meeting one
patient and looking at her scans,
Shaun announces, “She has a sarcoma, a malignant tumor.”
The concept for “The Good Doctor” originated with a hit series of
the same name in South Korea. Executive producer Daniel Dae Kim, a
star of “Lost” and “Hawaii Five-O,”
brought the show to Hollywood,
where it was developed by Sony
Pictures Television and adapted by
showrunner David Shore, the creator of “House.”
That hit series ran for eight sea-
sons on Fox, starring Hugh Laurie
in the title role of a doctor who is
as brilliant as he is bristly. House
uses cutting wit and insults to get
a reaction out of patients and colleagues. In the “The Good Doctor,”
Shaun’s statements are just as
blunt—“You are very arrogant,” he
observes of a lead surgeon—but he
has no ulterior motives.
In character, Mr. Highmore
speaks in a neutral tone with singsong fluctuations. Shaun’s dialogue
is “basic,” Mr. Shore says. “There
are no metaphors or flourishes.
It’s either short sentences or long
run-on ones.”
For the show’s writers, it’s been
challenging to become fluent with
Shaun’s voice. “Typical TV writing
is witty banter. It’s people being
super smart and funny and not
saying what they really believe,
because they’re always hiding
their cards,” says co-executive pro-
ducer David Hoselton, who has
written for three of Mr. Shore’s series, including “House.”
The “Good Doctor” writing staff
routinely consults Melissa Reiner,
a therapist who works with children with autism spectrum disorder, to make sure their story ideas
are relatively realistic to the world
of ASD. Co-executive producer William Rotko recalls asking Ms.
Reiner about how Shaun might interact with people outside the
structured environment of the hospital. In the episode Mr. Rotko
wrote, a fellow doctor, played by
Antonia Thomas, discovers that instead of asking Shaun direct questions, she can better communicate
with him using statements.
Because autism manifests itself
so differently among people on the
spectrum, “that gives us a certain
amount of license” with the character, Mr. Shore says. In early epi-
sodes, Shaun has adapted to understand sarcasm on the job, and a
brief interaction with a female
neighbor suggests the show will
explore his understanding of romantic relationships.
Shaun’s unvarnished manner
disarms or stirs up characters he
encounters, and perhaps gets audiences to pay closer attention to his
silences and body language.
“Scenes with Shaun shouldn’t be
like scenes with any other character on TV. If they are, we’re getting lazy,” Mr. Hoselton says.
“The Good Doctor” borrows a
visual device from the original Korean series: animated anatomical
images that swirl around Shaun’s
head as he analyzes the case before him. “When you’re working
with a character who doesn’t wear
his heart on his sleeve, it’s nice to
be able to see what he’s thinking,”
Mr. Shore says.
Producers say they wanted to
avoid portraying Shaun’s disorder
as a sort of medical superpower.
In the first episode, as hospital
leaders argue about whether a
doctor with autism should be allowed to join the staff, one of
them makes a remark about “Rain
Man.” The Oscar-winning movie,
about a savant and his long-lost
brother, is almost 30 years old, but
remains a defining portrayal of autism in popular culture.
“It’s viewed now as a cliché,”
Mr. Shore says, who scripted the
reference to “Rain Man” as “a conscious desire to separate ourselves
from it.”
ART AND AUCTIONS
BY KELLY CROW
THE WORLD’S MAJOR auction
houses hope the global art market
is ready to hit the gas this week after several seasons of riding the
brakes.
From a red Ferrari racecar at
Sotheby’s to a long-lost Leonardo
da Vinci at Christie’s, the houses
are trying to ride the market runup by packing all sorts of unusual
pieces into their traditional sales
of impressionist, modern and contemporary art in New York. The
resulting mix feels trophy-laden
but also something of a grab bag,
dealers say.
Sotheby’s, Christie’s and Phillips aim to sell at least $1.6 billion
worth of art combined, up from $1
billion last fall but still down from
the last market peak two years ago
when similar fall sales topped $2.3
billion. Christie’s said its $885 million in expected sales for the week
represents a 74% bump over last
fall—a sign that sellers are feeling
confident despite a shaky sale in
London last month where a Francis Bacon portrait estimated at
$80 million didn’t sell.
Christie’s said the Bacon’s stumble didn’t stall the market’s momentum. Simon Shaw, Sotheby’s
co-head of impressionist and modern art world-wide, agreed, saying
other factors matter more. “The
Asians are maturing as collectors
and feeling liquid, and the Americans are all-in,” he said, with new
and seasoned bidders who will
likely spur competition.
That’s why sellers of various
kinds of art—or cars—are shoehorning them into these high-profile sales. Da Vinci’s estimated
$100 million portrait of Jesus
Christ as the world’s savior, or
“Salvator Mundi,” would typically
anchor an old masters sale at
Christie’s. But its owner, Russian
billionaire Dmitry Rybolovlev,
agreed to let the house drop the
painting into its contemporary sale
Wednesday so it could be offered
alongside Andy Warhol’s “Sixty
Last Suppers.” The 1986 wall-size
silkscreen pays homage to another
da Vinci masterpiece; the house
estimates the Warhol will sell for
$50 million.
Christie’s marketed the da Vinci
around the world, from San Francisco to Hong Kong, emphasizing
its rediscovery in 2005. The auction house labeled the work the
last “doubt free” da Vinci in private hands, a nod to the fact that
museums like London’s National
Gallery have vouched for its authenticity.
Old Master dealer Richard Feigen
said he believes the work is genuine
but its canvas has undergone such
extensive restoration that “there’s
only a skeleton of da Vinci left on
the canvas.” Mr. Feigen added,
“There’s not enough of his original
brushstrokes to convince me to ever
recommend anyone buy it.” Christie’s said the painting hasn’t been
Please turn to page A13
Leonardo da Vinci’s ‘Salvator Mundi,’
right, has a $100 million estimate.
CHRISTIE’S IMAGES LTD. 2017
DA VINCI, VAN GOGH, FERRARI?
NEW YORK AUCTIONS REV UP
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.
A12 | Monday, November 13, 2017
LIFE & ARTS
WHAT’S YOUR WORKOUT? | By Jen Murphy
At 61, Skiing to
the South Pole
Robert Swan, the first to walk to both poles, is
training for another journey
Prepare
To Be Cold
Whether you’re traveling to see
the Northern Lights or planning a
backcountry ski adventure, it helps
to know how to prepare for cold
weather. Petter Thorsen, founder of
Arctic Training and Expeditions in
Norway, says people usually make
the mistake of dressing too warm,
especially when skiing.
“You don’t want to be so warm
and knowledge, you’re bloody just
getting warmed up at 61,” Mr.
Swan says.
The Workout
Mr. Swan took up yoga under his
son’s direction. “I have few regrets
in my life, but one is not having
tried yoga sooner,” he says. “I was
an incredibly stiff human being.
I’m more flexible now than I’ve
ever been in my life.” Mr. Swan
needed a hip replacement, but
doctors worried how a prosthetic
would hold up in polar conditions
even as he says they signed off on
the trip. Instead, he’s used a combination of stem-cell therapy and
gentle vinyasa yoga to help negate
his hip pain.
The South Pole is about 9,300
feet above sea level. Mr. Swan has
been training for the altitude with
road cycling. He and his son log
about 200 miles a week, climbing
to elevations between 8,000 and
9,000 feet in the Sierra Mountains.
“I go very, very slow,” he says.
“Barney is miles ahead of me. He
jokes that I’m an old Terminator
just grinding away.” To prepare his
body to pull a 250-pound sled
across the South Pole, he wears a
harness and pulls tires up a trail
near his home. “I’ve frightened
quite a few hikers,” he says.
Mr. Swan says recovery will be
crucial to his success. “Barney can
have a dreadful sleep and at 23,
wake up and be fine,” he says. “At
my age, if I make a mistake with
my recovery, I’m going to get
weak. I need to do whatever it
takes to get eight solid hours of
sleep a night on this journey.”
The Diet
“I’m an Englishman, so I’d be happy
on a diet of salami and biscuits,”
Mr. Swan says. “But my son told me
I had to get with the program, so
for the first time in my life I’ve had
to think about my diet.” Mr. Swan
lost 60 pounds during his first
South Pole expedition and 25
pounds walking to the North Pole.
He’s added 15 pounds to his 195pound frame ahead of his upcoming
you start to sweat as soon as you
get moving,” he says. “If you’re layering correctly, you will be cold the
first 10 minutes, but you’ll be comfortable the rest of the day as long
as you keep moving.”
Mr. Thorsen suggests a base
layer of thin wool or synthetic mesh
to wick away sweat. A 100% windproof shell jacket and pants are
musts, and he suggests packing a
down jacket to keep the body warm
when not in motion.
“Most people get dehydrated in
1 SYSTEM SOLD EVERY 6 SECONDS
Each SimpliSafe system is a complete security
arsenal – featured in the HGTV® Dream Home 2017.
From motion and entry sensors to a high-definition
security camera, you’ll have everything you need to
keep your family safe.
trek. His diet is centered around
fish, eggs and vegetables. Thirty
days out, he and his son transitioned to a diet high in healthy fats,
such as avocados and fish rich in
omega-3 fatty acids. “I have a slug
of fish oil and eat a quarter-pound
of butter every day,” he says.
On the expedition, the men will
eat about 8,000 calories a day, fueling constantly on vacuum-sealed
salmon, soups and protein-packed
grains like kamut.
The Gear
Mr. Swan will only use clean-energy
technologies throughout the expedition. He’ll use a NASA-developed
ice-melting system that runs off solar power and biofuels made from
wood chips and algae created by
Shell, one of his sponsors. Portable
solar technology lithium batteries
from sponsor Goal Zero will charge
devices like a virtual reality camera.
Patagonia, another sponsor, has
provided the father and son with
apparel and dehydrated foods.
the cold because they don’t feel
thirsty,” he cautions. “Add extra water
to your morning porridge, and try to
drink warm liquids like soup or hot
chocolate throughout the day.” Physical cold-weather endeavors require
physical and mental preparation.
“Pulling tires will build your stamina,
strengthen specific muscles and ligaments and prepare you mentally for
the monotonous hard work ahead,” he
says. He also says it helps to spend
time training with experts in cold conditions if possible.
FROM TOP: RAMIN RAHIMIAN FOR THE WALL STREET JOURNAL (2); 2041
SIR ROBERT SWAN is the first to
admit that, at 61, he probably
shouldn’t be attempting to walk to
the South Pole.
“I feel like Rocky coming out of
retirement,” says the English-born
polar explorer. In 1986, Mr. Swan,
and his team of two other men,
completed a 70-day, 900-mile journey to the South Pole, the longest
unaided march in history. Three
years later, he walked with a team
of seven people 700 miles to the
North Pole, becoming what he says
is “the first person stupid enough
to walk to both poles.”
He’s returning to Antarctica to
raise awareness around renewable
energy. “Walking to both poles in
many ways was selfish and pointless,” says Mr. Swan, founder of
2041, an organization dedicated to
preserving Antarctica. “But it
opened my eyes to the effects of
climate change, and this time I’m
walking to prove a point.”
Mr. Swan and his 23-year-old
son, Barney Swan, will embark on
Nov. 15 on the South Pole Energy
Challenge. Once on the continent,
the 600-mile, eight-week journey
on skis will be powered only by
clean-energy technologies. “So
much of this undertaking is psychological,” he says. “Being able to
share our experience with others
will motivate me through the
tough times.”
Mr. Swan was in his late 20s and
early 30s when he undertook his
previous expeditions. “I was in
shape, but I didn’t strategically
train,” he says. “I relied on youth.”
His expeditions, however, took a toll
on his body. Pulling a 350-pound
sled nine hours a day for 70 days in
extreme, subzero temperatures
messed up my knees and lower
back and damaged my hip, he says.
Walking to the poles may have
taken a few years off his life, but
he jokes his upcoming expedition
has probably added a few back.
The Swans live in Auburn, Calif.,
known as an endurance hub, and
Barney convinced his father to
train with him this time. “I’m
proof that with today’s technology
From the top, Robert Swan and the tires he uses in his training regime; Mr.
Swan on the trails near his Auburn, Calif., home; Mr. Swan is founder of 2041,
an organization dedicated to preserving Antarctica.
FIRST CLASS
TRAVEL FOR
YOUR FEET
Gift Solutions for Busy Professionals
Save 10% when you order today
PLUS get free shipping and a FREE
keychain remote ($25 value).
Travel tip: comfortable feet make everything
more fun. The Un-Sneaker combines the comfort
of a sneaker with the style of a shoe. Travel well!
This holiday season, give well-made gifts of quality
they’ll use and enjoy all year long, from leather goods
and writing instruments to the latest tech innovations.
Shop Levenger.com for special offers
and sales on our holiday gift collection
Professional Accessories Bags & Totes
Home & Office Furniture & Lighting Travel Essentials
Folios & Notebooks Writing Instruments
SimpliSafe.com/WS
Free shipping and returns. Order online or call 844.482.4800.
Levenger.com
800.544.0880
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.
Monday, November 13, 2017 | A13
LIFE & ARTS
ART REVIEW
Tracing the Education of Michelangelo
The Met’s exhibition shows how the master used drawing to experiment, refine and expand his work—both on and off the page
Michelangelo’s ‘Three Labours of
Hercules’ (1530–33), left, and ‘Young
Archer’ (1490), attributed to him,
below
BY CAMMY BROTHERS
FROM TOP: ROYAL COLLECTION TRUST/© HER MAJESTY QUEEN ELIZABETH II 2017; THE METROPOLITAN MUSEUM OF ART
dented in the history of drawing.
The modeling is so subtle that art
historians initially speculated that
Michelangelo had not used chalk
to shade but to make dots, a technique known as stippling. This
theory has since been discredited,
but that it came up at all is a testament to how unusual Michelangelo’s drawings were. Rather than
doing something differently, he
was doing the same thing as everybody else, only better.
In these drawings, subject matter was almost secondary, just a
pretext for showing what he could
do with the figure. On the reverse
of “Punishment of Tityos,” he rotated the sheet 90 degrees, traced
the outline of Tityos, and arrived
at the figure of “Risen Christ” (not
visible in the exhibition but in the
catalog), which he used in several
more drawings. This illustrates a
paradox of Michelangelo’s work,
one amply on view: His originality
was not built on an infinite capacity to invent new ideas but on a
tremendous efficiency at
recycling them. These
transformations were
not about content; the
only principle was
never let a good
idea go to waste.
The most spectacular revelation
of context comes in
the room devoted to
the Sistine Chapel.
Accompanying each
drawing is a photograph of the relevant portion of the
fresco, and a digital
reproduction of the
entire ceiling has
been installed overhead. Viewers can see
the fragmentary limbs
and torsos Michelangelo drew on
multiple sheets in
precise relation
to where they
ended up.
Art historians still puzzle over
the ceiling’s meaning, but anyone
looking at the drawings will recognize that it is among other
things a celebration of the
beauty of man. As Michelangelo’s contemporaries
noted, he fashioned a new
kind of male body: not the
slender young figures of
the studio apprentices, but
bodies that had known work.
They may make us think of the
gym, but to Renaissance eyes
they evoked labor. His critics
complained that he showed ruffians rather than refined men.
Emotion is one of the elusive elements of Michelangelo’s art, it
comes and goes. Among his most
emotional works were also his
most private, the series of Crucifixion drawings he did toward
the end of his life. The outlines have been traced and retraced with an obsessive
hand, so that the contours
can barely be found. This
is drawing as a form of meditation
and as an act of private devotion.
Ms. Bambach is to be commended for not being stingy with
the architectural drawings—
among the most ravishing ever
made, but sometimes excluded because they are deemed less accessible or appealing. Michelangelo’s
fortification drawings, represented here by one stunning example, read as a cross between a
biomorphic creature, a crustacean, and a terrifying robot. They
take us into a world in which design was considered central to defense—as if the Pentagon kept
Frank Gehry on retainer. Another
exceptional sheet in this room is
the drawing of the monumental
stairs of the Laurentian Library,
combining ink wash with red
chalk, profiles and perspective in
strange juxtaposition.
If there is a missed opportunity
here, it is about attribution. A
sculpture known as “Young Archer” and “The Torment of St. Anthony,” a small painting, are said
to be by Michelangelo but the issue is still far from settled. This
would have been an occasion to invite the public into the discussion,
but the labels fail to address these
matters.
Still, for the Met, these days in
hot pursuit of the new, this exhibition demonstrates how the old can
be new again, and that there may
be few things sexier than the rippled muscles of Michelangelo’s
nudes, ever so supplely rendered
in soft black chalk.
Ms. Brothers is a professor at
Northeastern University and the
author of “Michelangelo, Drawing,
and the Invention of Architecture”
(Yale).
Michelangelo: Divine
Draftsman and Designer
The Met Fifth Avenue,
through Feb. 12, 2018
FROM TOP: SOTHEBY’S; 2017 THE ESTATE OF JEAN-MICHEL BASQUIAT/ADAGP, PARIS/ARS
New York
IT’S RARE THAT a major museum
gives drawings top billing. They are
not seen as alluring enough to engage the public. But one thing they
can do is lift the veil on the artistic
process, even for such a secretive
artist as Michelangelo (1475-1564).
And the Met’s new exhibition does
this beautifully.
“Michelangelo: Divine Draftsman and Designer,” organized by
Carmen Bambach, a drawings curator at the Met, contains 133
drawings by the master as well as
works in other media. She has
transformed an encyclopedic survey into a page turner.
The show is organized chronologically and thematically, with the
objects providing a generous sense
of context. Michelangelo is presented not in the familiar way as a
lone genius, but as an apprentice,
collaborator and teacher, an artist
learning from his elders and working alongside his contemporaries
and students.
Some of the most revealing sections of this exhibition are the
suites of drawings of the same
theme, each showing subtle corrections or modifications. To see drawings side by side that were made at
the same time but have been dispersed geographically for hundreds
of years is to feel like a bystander
in Michelangelo’s workshop.
Among the most stunning examples are the three versions (four
including a copy in rock crystal) of
“Fall of Phaeton,” an exceptional
composition showing, in the center, four horses hurtling toward
earth in various contortions. We
see Michelangelo’s process of revision, as well as his humility—
scrawled on the pages are notes
seeking the approval of his beloved friend, Tommaso dei Cavalieri, a young Roman nobleman.
In their subject matter and execution, “Fall of Phaeton” and several other sheets—including “The
Dream,” “The Archers” and “Punishment of Tityos”—were unprece-
Among the offerings coming up for auction at Sotheby’s in New York are driver Michael
Schumacher’s Ferrari racecar and a Jean-Michel Basquiat painting, below, owned by Yoko Ono.
AUCTIONS
Continued from page A11
altered since it was shown at the National
Gallery a few years ago.
Sotheby’s is displaying Monaco Grand
Prix-winning driver Michael Schumacher’s
race car in the lobby of its Manhattan headquarters. They plan to ask at least $4 million
for the cherry-red Ferrari during Sotheby’s
Thursday sale of contemporary art rather
than have its partner RM Sotheby’s offer it in
a typical luxury-car auction. “Why not?” said
Grégoire Billault, head of contemporary art.
The anything-goes exuberance continues
all week. Microsoft co-founder Paul Allen
has asked Sotheby’s to put his Georgia
O’Keeffe pastel from 1925, “Yellow Sweet
Peas,” in its contemporary sale rather than a
sale of American art where O’Keeffes typically are included. Sotheby’s also has made
room in its impressionist and modern sale
for Dutch artist Vilhelm Hammershøi’s “Interior with Woman at Piano, Strandgade
30,” a 1901 scene of a woman playing music
that in past seasons would have been funneled into the house’s sale of 19th-century
paintings. Even boutique house Phillips,
known for selling edgy, young art, has shuffled its offerings to include mainly blue-chip
mainstays like Peter Doig and Franz Kline.
“That’s part of our strategy now,” said Phillips deputy chairman Jean-Paul Engelen.
A surplus of estates has flushed out material that has been tucked away for decades. That is catnip for bidders seeking
pedigreed art that they haven’t already seen
or sought. Christie’s said 90% of its impressionist and modern art sale on Monday
hasn’t been seen at auction in the past 20
years. At Sotheby’s, only 20 of its 74 contemporary artworks on Thursday have ever
been to auction at all.
Among the estate goods, bidders are
likely to chase after Texas oil heiress Nancy
Lee Bass’s collection, including Vincent van
Gogh’s “Farmer in a Field, Saint Rémy,”
which Christie’s estimates will sell for at
least $50 million. The Bass estate also includes Mark Rothko’s untitled red-and-yellow rectangle abstract work on paper from
1969 for at least $10 million. The estate of
Anna-Maria Kellen will ask at least $65 million for Fernand Léger’s red abstract from
1913, “Contrast of Forms,” also at Christie’s.
Among Sotheby’s high-profile clients is
artist Yoko Ono, who asked the house to sell
a Jean-Michel Basquiat she has owned since
1993, titled “Cabra,” for at least $9 million.
Historic-preservation advocate Barbaralee
Diamonstein-Spielvogel has enlisted the
house to sell a group of 24 works on paper
including seven by Jasper Johns, setting up
a rare test of this area of the artist’s market.
Another artist who may be tested is Mr.
Kline, the abstract painter of black slashes
who has prime examples up for bid at Christie’s and Phillips. Several houses have works
by women artists who have been overlooked
in recent seasons like Suzanne Duchamp,
Lee Krasner and Marlene Dumas. The sales
run through Friday.
Silver Lining
Tahitian Silver Pearls
Exquisite silver hue. Brilliant luster. Incomparable beauty.
Thirty-one captivating silver Tahitian pearls are perfectly
matched in this sumptuous necklace. Rare among Tahitian
pearls for their light, silvery hue, these enchanting gems
range in size from 12mm to a remarkable 14.9mm. Those
that display such beauty, as well as such extraordinary size,
are truly treasures of the sea. 171/2” length. #30-5054
630 Royal Street, New Orleans, Louisiana • 888-867-9583 • ws@rauantiques.com • rauantiques.com
Since 1912, M.S. Rau Antiques has specialized in the world’s finest art, antiques and jewelry.
Backed by our unprecedented 125% Guarantee, we stand behind each and every piece.
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 | Monday, November 13, 2017
SPORTS
COLLEGE FOOTBALL
The Season Just Got Really Weird
Giancarlo
Stanton
Blowout losses by two of the nation’s top three teams expands the list of contenders for the playoff
MLB
STANTON
IS A BIG CATCH
BY JARED DIAMOND
BASEBALL’S ANNUAL general
managers meetings start Monday
with one big prize available to
jumpstart the offseason: Miami
Marlins slugger Giancarlo Stanton.
The meeting at the Waldorf Astoria Orlando brings the top decision-makers from all 30 organizations together. Though the
majority of major transactions
likely won’t be finalized this
week—this gathering will allow
teams to start laying the groundwork for the winter ahead.
No player will receive more attention than Stanton, who blasted
59 home runs in 2017. Following
the recent sale of the Marlins to a
group led by businessman Bruce
Sherman and future Hall-of-Famer
Derek Jeter, the Marlins will likely
look to shed payroll and embark
on a full-blown rebuild.
That doesn’t bode well for Stanton’s future in South Florida, considering his massive contract:
Stanton will earn a guaranteed $77
million over the next three seasons, and if he doesn’t opt out of
the deal at that point, would make
at least another $218 million
through 2027. Jeter, the Marlins’
CEO, has been mostly quiet about
his plans so far, but it is widely
believed in the industry that Stanton will be available.
The St. Louis Cardinals, who
missed the playoffs for the second
straight year in 2017, have
emerged as a top candidate for
Stanton, in large part thanks to
their impressive crop of pitching
prospects. The San Francisco Giants and Philadelphia Phillies also
look like potential landing spots.
Beyond Stanton, there are several notable free agents that are
sure to be the subject of discussion this week. On the pitching
side, Jake Arrieta and Yu Darvish
lead the charge. As for hitters, outfielder J.D. Martinez will be the
most coveted. Martinez, 30, compiled 45 homers and 104 RBIs for
the Detroit Tigers and Arizona Diamondbacks last season. His agent,
Scott Boras, will be seeking a deal
in the range of $200 million.
IT ALMOST WAS the craziest day
in recent college football history.
No. 1 Georgia had already lost
to Auburn and No. 3 Notre Dame
was getting routed in Miami. And
perhaps most shocking of all on
Saturday night, No. 2 Alabama was
trailing in the fourth quarter to a
Mississippi State team that hadn’t
beaten a Nick Saban-led squad
since 2007. The last time the nation’s top three teams all lost on
the same day, Lyndon B. Johnson
was president.
But then Crimson Tide quarterback Jalen Hurts converted a 4thand-4, and with two late touchdowns, Alabama (10-0) emerged
with a 31-24 comeback victory.
Nonetheless, the College Football Playoff picture has been
shaken up, with the chaos at the
top of the standings opening the
door for an unprecedented situation: a two-loss team in the final
four. Since the implementation of
the four-team College Football
Playoff in 2014, a two-loss team
has never been selected.
In most seasons, the debate for
one of the final playoff spots
comes down to a handful of teams,
but with three weeks to go before
the four-team College Football
Playoff bracket is set, almost nothing has been resolved.
No. 10 Auburn (8-2) seemed to
be out of the national title picture
after dropping two games before
Halloween. But Tigers head coach
Gus Malzahn kept reminding anybody who would listen last week
that his team still had a chance.
“We control our own destiny,”
Malzahn said, citing his team’s upcoming matchups against No. 1
Georgia and an Iron Bowl date
with No. 2 Alabama.
After a 40-17 rout of Georgia,
Malzahn’s proclamation is closer
to reality. “Here we are, Nov. 11,
and we’re right in the middle of
it,” Malzahn said after Saturday’s
win. “And all the dreams we have
are still alive.”
Although the Tigers will be underdogs at home against Alabama
on Nov. 25, if they were to upset
the Crimson Tide and then beat
Georgia (9-1) again (in the SEC title game on Dec. 2), it will be hard
for the selection committee to
leave them out of the bracket.
The Big 12 Conference has
missed out on a spot in two of the
first three years of the College
Football Playoff, but added a
championship game this season to
improve its chances. The decision
was made in part, because Ohio
State in 2014 made the playoff
over two 11-1 Big 12 teams, TCU
and Baylor, who didn’t have a title
game. That decision could now potentially backfire.
Auburn’s Jarrett
Stidham celebrates
during a win
against Georgia.
With a 38-20 win over No. 6
TCU (8-2), No. 5 Oklahoma (9-1)
all but assured itself a spot in the
Big 12 title game. The irony is that
the Sooners will have to play the
second-place Big 12 team in Dallas
on Dec. 2—likely either TCU or
Oklahoma State (8-2)—to secure a
playoff spot it probably would’ve
A two-loss team has
never been selected for
the four-team College
Football Playoff.
had without a conference title
game. If Oklahoma stumbles in the
Big 12 title game, after previously
beating both the Horned Frogs and
Cowboys in the regular season, the
Big 12 will be left with a two-loss
conference champion.
No. 8 Wisconsin (10-0) remains
undefeated, and is headed to the
Big Ten title game, where Ohio
State (8-2) likely awaits. The
Buckeyes, who suffered their worst
defeat in the Urban Meyer era, a
55-24 loss to Iowa on Nov. 4, rebounded by pounding Michigan
State 48-3 on Saturday. If they
were to close out the season by
demolishing Illinois, Michigan and
an undefeated Badgers team, Ohio
State will be back in the postseason conversation.
The Pac-12 had been considered
the Power-5 conference most likely
to be left out of the playoff this
season, as every team in the conference has at least two losses. The
conference’s top team, No. 9 Washington (8-2) was an early season
contender before losses to Arizona
State and Stanford. But both the
Huskies and Southern California
(9-2), which clinched a spot in the
Pac-12 conference title game with a
38-24 win over Colorado on Saturday, have an outside chance of
climbing back into the mix.
The only conference where
things appear to be settled is the
ACC, where No. 7 Miami (9-0) effectively knocked out Notre Dame
(8-2) from playoff contention with
a 41-8 win. The Hurricanes cur-
rently hold the nation’s longest
winning streak—14 games—and
get a crack at defending champion
No. 4 Clemson (9-1) in the ACC title game in Charlotte, with a playoff spot on the line.
The Fighting Irish, meanwhile,
close out the season with games
against Navy and at Stanford but
don’t have the advantage of a conference championship game to further boost their résumé.
Of course, if Alabama, Oklahoma, Wisconsin and the winner
of the ACC championship (Miami
or Clemson) all win out, then the
playoff committee will have an
easy time setting the bracket. But
after a crazy weekend in which
four of the top-10 teams in the nation lost, that is a big if.
As Alabama’s struggles against
Mississippi State proved, even the
one team that looked like a sure
thing this season can be beaten.
“Sometimes you need hard,” Alabama coach Nick Saban said on
Saturday. “You learn a lot in
games like this that you don’t
when you win 49-0. There are still
really big games to come.”
The WSJ Daily Crossword | Edited by Mike Shenk
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
10s
d
t
Edmonton
Vancouver
Vancouver
30s
g
Eugene
40s
50s
i
Boise
40s
10s
ip
Winnipeg
Seattle
Helena
0s
20s
Calgary
30s
Portla
d
Portland
<0
20s
Ottawa
Bismarckk
g
Billings
T
t
Toronto
A
b y
bany
Albany
50s
Boston
60s
rtford
Hartford
k
Milwaukee
Detroit
t
l
Buffalo
New
ew York
Y k
Cleve
Cl
l d
Cleveland
Ch
Chic
g
Chicago
Reno
Salt LLake
ake City
40s
es Moines
Des
Cheyenne Omaha
P
hil d lph
h
Philadelphia
h
Sacramento
g
Indianapolis Pittsburgh
p
d
Springfield
Denver
50s
h g on D.C.
DC
Washington
Kansas
50s
San
an Francisco
Ch
Charles
l
t
Charleston
60s
Topeka
C
Colorad
l d
Colorado
City
h
d
Richmond
Las
L
Springs
p g
LLou
St.. Louis
LLouisville
Lou
ill
hit
Wichita
70s
Vegas
Ve
i h
Raleigh
Nashville
h ill
50s
anta Fe
Santa
Los A
Angeles
Angel
Ch
h
Charlotte
60s
Memphis
hi
60s
70s
C
b
Columbia
80s Phoenix
Ph
Oklahoma
homa
ma C
City
A
b q q
Albuquerque
Warm
San Diego
Atlanta
Atl
t
Little Rock
Tuc
Tucson
i
h
Birmingham
El P
Paso
Dallas
D
ll
Jack
Jackson
h
Ft. Worth
Cold
50s
oux FFalls
ll
Pierre Sioux
Mobile
bil
20s
A
ti
Austin
70s
80s
Anchorage
A h g
Honolulu
l l
30s
40s
Houston
t
ew Orleans
New
10s
70s
n Antonio
A t i
San
80s
80s
Miami
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.
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
50
66
79
91
55
45
48
86
89
46
45
Today
Lo W
42 sh
56 t
52 pc
76 sh
28 s
32 pc
37 c
63 s
73 s
44 c
41 pc
Tomorrow
Hi Lo W
51 46 c
69 59 t
81 57 s
90 79 pc
45 22 s
43 42 pc
47 44 c
89 68 s
90 71 s
53 44 sh
51 37 sh
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
26
8
27
10
12
13
16
24
29
22
25
30
31
34
37
32
35
38
42
44
45
47
48
51
46
49
52
56
57
58
30 Fresh
3 City with a
famous bell
tower
31 Board, as an
airplane
53
54
55
59
7 Mal de ___
(passenger’s
queasy feeling)
42 “Be prepared” or
“Live free or die”
8 Misbehaving
44 Landlords’
documents
9 “Just do it” or
“Got milk?”
Showers
Flurries
63
64
65
10 Subway option
PLANE-SPOKEN | By Daniel Hamm
5 “The Lion King”
hero
10 Without delay,
in the hospital
14 Stepped down
15 Do a breadmaking chore
16 Wrong
17 Sentries in
front of the
airplane?
19 Deceptive one
26 Carbonated
quaffs
29 Small dents in
the airplane?
33 Belonging to
thee
34 Pod veggies
35 “Golly!”
36 Go by
37 No longer little
39 Refer to
20 U.S. Navy nuclear 40 Gallery display
sub class
41 Male deliveries
21 Simple adjoining 42 Estate home
shelter
43 Paint jobs at
23 Hand-to-hand
combat?
the back of the
airplane?
46 Sinister signs
47 Canada flag
feature
48 Make ecstatic
50 Frozen treat
52 Facing charges
56 Athena’s warring
brother
57 Rough drawing
on part of an
airplane?
60 One might be
worn in a sting
operation
61 1040 mailer
62 Pioneering
carmaker
Ransom
63 Piano’s 88
64 Digger’s tool
65 Orderly
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
38 Gene messenger
39 Neighbor of
Nigeria
62
25 Words from
someone
picking up the
tab
37 Workers who are
shirkers
6 Shortly,
informally
61
Across
1 Bottle
toppers
32 Visionaries
4 Cassoulet
cookers
60
Tomorrow
Hi Lo W
44 34 pc
42 29 pc
81 68 pc
80 73 s
68 55 s
89 77 t
72 52 pc
82 60 t
52 47 pc
62 34 s
89 78 pc
89 70 s
72 47 pc
52 34 pc
42 30 r
90 76 pc
49 38 pc
81 66 s
86 56 s
61 49 t
87 77 sh
52 32 s
65 52 c
87 76 t
72 59 s
78 70 r
67 55 r
42 31 pc
49 41 r
41 34 pc
41 26 pc
28 Source of spirits
2 Lotion additive
Snow
Today
Hi Lo W
47 30 sh
44 31 c
83 68 pc
79 73 pc
66 56 c
90 76 t
74 53 pc
82 61 pc
46 39 pc
57 33 pc
89 78 pc
88 64 s
71 47 pc
54 36 c
37 32 pc
91 75 pc
49 35 pc
82 64 s
82 54 s
59 42 t
86 77 sh
58 39 c
67 54 c
87 77 pc
71 59 pc
78 72 c
62 57 pc
41 32 c
50 44 r
39 32 sh
42 26 c
27 Maureen of
“The Quiet Man”
Down
1 Beverage cart
containers
5 Lurk in the
shadows
39
41
Rain
11
19
28
43
50
9
21
40
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
26 19 s
27 14 s
Atlanta
66 44 s
63 41 s
Austin
78 58 pc 79 58 pc
Baltimore
50 35 r
53 31 pc
Boise
59 36 r
51 37 pc
Boston
44 36 c
44 35 c
Burlington
40 28 c
42 27 c
Charlotte
63 39 s
59 35 s
Chicago
43 32 s
50 43 pc
Cleveland
45 35 c
47 35 pc
Dallas
70 58 r
78 60 pc
Denver
68 36 s
66 29 pc
Detroit
43 31 pc 45 35 pc
Honolulu
86 73 pc 84 73 sh
Houston
80 58 s
80 58 pc
Indianapolis
45 32 pc 49 35 pc
Kansas City
52 44 pc 56 47 c
Las Vegas
77 55 pc 75 54 pc
Little Rock
61 39 pc 60 47 pc
Los Angeles
75 57 pc 74 57 pc
Miami
84 74 sh 84 70 pc
Milwaukee
43 33 s
46 43 pc
Minneapolis
44 35 pc 47 31 c
Nashville
54 36 pc 58 41 s
New Orleans
74 57 s
71 55 s
New York City
49 36 r
48 37 pc
Oklahoma City
59 52 c
70 54 pc
7
18
23
36
Ice
Tomorrow
Hi Lo W
59 38 c
77 60 pc
52 34 s
87 60 pc
46 29 pc
43 27 c
54 45 r
63 45 pc
59 45 pc
57 36 pc
64 51 pc
67 37 s
51 43 r
55 31 c
54 36 pc
6
20
80s
T-storms
5
15
17
33
100+
4
Stationary
70s
Today
Hi Lo W
52 42 pc
82 65 pc
50 34 r
87 62 pc
45 34 c
41 30 c
53 45 r
63 47 r
50 34 pc
64 41 pc
66 53 sh
64 39 pc
52 45 r
53 37 pc
51 39 r
3
14
70s
90s
Jacksonville
k
d
Orlando
Tampa
2
40s
A g t
Augusta
Mpls./St.
p / . Paul
pls
Pa
30s
30s
Montreal
1
41 “Go away!”
45 Was inclined
49 Tennis great
Agassi
11 Like most
commercial
airplanes
50 Do some
rubbernecking
51 Lake port of
Pennsylvania
12 “I smell ___!”
13 Novice
18 Flyer in a V
formation
22 Terminal parts
53 Not doing
anything
24 Clever comeback
26 March 17
honoree, for
short
54 Star of TV’s
“M*A*S*H”
55 For fear that
58 Gloss target
59 In the style of
Previous Puzzle’s Solution
MA D AM
O P E R A
B R I C K H
E E
MA L A I S
A D U L T S
H OM E S
E B B
O R
R E E L
E
R E E V
S L Y G R I
C O A R S E
R A R E W
A D D S
E
P S S T
R
S
T
O
L
E
S
E
V
E
N
O
L
E
P A T
I D E
U S E
S
N A
B A R
R E G R
A G E
C A R T
E N W
S
P I
MO N
T A N K
O L G L
L E
E
D S
D
H
A
R
D
E
E
S
G
R
A
I
N
W
H
I
I S
C K
E Y
T
I
S
N
T
V
A
P
E
S
A
P
P
L
E
H
O
S
E
D
O V E S
X I L E
O N O T
The contest answer is SETTLERS OF CATAN. The
first words of the five theme answers (BRICK,
ORE, WOOL, GRAIN and LUMBER) are five
resources in the board game.
FROM LEFT: ROB FOLDY/MIAMI MARLINS/GETTY IMAGES; JOHN DAVID MERCER/REUTERS
BY JIM CHAIRUSMI
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.
Monday, November 13, 2017 | A15
OPINION
A Soviet Cleansing in Cuba
Most Americans
have
never heard of
the anti-Castro uprising in
Cuba’s EscamAMERICAS bray Mountains, which
By Mary
began in 1959
Anastasia
and took Fidel
O’Grady
and the Soviet
Union
six
years to put down. At the
100th anniversary of the Bolshevik Revolution, the episode
is worth revisiting. If not for
400 Soviets sent to Cuba under the command of the Red
Army and the KGB in 1961, it is
unlikely that Castro would
have prevailed.
What happened in the Escambray pokes a giant hole in
Castro’s narrative that his revolution was a justified power
grab supported by workingclass and rural Cubans. The
fact is that when Cubans began to understand that Fidel
planned to replace Fulgencio
Batista as the next dictator
and to impose communism,
many rebelled. None fought
harder than central Cuba’s
guajiros—small land owners
and tenant farmers.
Forty years after Castro
took power, a protégé named
Hugo Chávez was elected president of Venezuela and allowed
to consolidate power. Today
that once-rich country is an
authoritarian hellhole where
toilet paper is a luxury and
malnutrition is widespread.
Venezuelans did not see
what was coming in part because of the failure of histori-
ans, journalists, lawyers, academics
and
politicians
throughout the Americas to expose the atrocities committed
in the 1960s against the guajiros and other dissidents.
Castro understood the importance of controlling the
press, foreign as well as domestic. He used that control
to popularize his version of
events. He framed the resistance—those who rejected his
communist takeover—as a
The Russians used
their experience at
home to annihilate
dissident peasants.
white, urban aristocracy unhappy because it was losing
its privilege under his new
justice. Meanwhile, he wiped
out whole farming communities with Stalinesque ruthlessness, and he did it with
guidance from the Kremlin,
which exported its experience
in intelligence gathering and
repression.
Agapito Rivera was born in
1937 in central Cuba, one of
seven children in a poor family
that cut sugar cane on a large
estate. He told me in an interview in Miami earlier this year
that when he first started cutting cane he was so small that
his older brother had to throw
the shoots onto the cart for
him. By the time Castro took
power, Mr. Rivera was 22 and
married. That year a daughter
was born. The young family
lived in a small house Mr. Rivera had built himself.
Many peasants opposed Batista. When he fled, they celebrated. But they quickly recognized Castro’s ambitious plan
to betray the revolution. Ironically it was the takeover of a
large sugar plantation called
Sierrita that confirmed their
worst suspicions. Sierrita had
been an excellent employer.
The owners paid well and
treated workers with dignity.
Yet it was the first property
seized in the area.
I wondered why Mr. Rivera
had objected, since Castro
was promising “social justice”
for the poor. “I looked at
that,” he said, referring to the
confiscation of Sierrita, “and
I said to myself, if he can do
that to them, what future do
I have?”
Mr. Rivera went into combat with other guajiros and
alongside former Castro guerrillas who had fought in the Sierra Maestra to restore the
constitutional democracy.
In his 1989 book, “And the
Russians Stayed: The Sovietization of Cuba,” Cuban-born
Nestor Carbonell uses the testimony of a former Castro intelligence officer to describe
how the Soviets crushed the
Escambray rebellion, which at
one point numbered 8,000 insurgents. Castro had sent
12,000 soldiers and 80,000 militia to the region in late 1960,
but they’d made no headway.
So in January 1961 the Kremlin
stepped in. It sent a contingent
of Soviet coaches to a military
compound near the city of
Trinidad. That compound became a “KGB redoubt,” Mr.
Carbonell explains. “From
there, the Soviets secretly directed a major offensive to
quash the insurgency.”
The operation mobilized
70,000 Cuban soldiers and
110,000 militia. They “uprooted
most of the peasant families living in the area, and dragged
them into concentration camps”
in the far western part of the
country. More than 1,800 prisoners were executed, according
to Mr. Carbonell. “The obsessive
goal was total extermination,”
so the government forces “destroyed crops, burned huts and
contaminated springs as they
systematically combed the region for rebels or suspects.”
The U.S. made secretive attempts to get supplies to the
resistance, but poor coordination hampered operations.
When President John F. Kennedy withdrew support for
the Bay of Pigs Invasion in
April 1961, the U.S. also abandoned the Escambray. The
rebels were outnumbered and
outgunned but they did not
give up easily. It wasn’t until
1965 that they were entirely
defeated.
Mr. Rivera was captured in
1963, spent 25 years in prison,
and was exiled in 1988. And
the story of the Soviet campaign in Cuba to annihilate
farmers and peasants—who
rejected the collectivization of
agriculture just as they had in
Russia—never made it into
popular culture.
Write to O’Grady@wsj.com.
Algorithms With Minds of Their Own
By Curt Levey
And Ryan Hagemann
E
veryone wants to know:
Will artificial intelligence
doom mankind—or save
the world? But this is the
wrong question. In the near future, the biggest challenge to
human control and acceptance
of artificial intelligence is the
technology’s complexity and
opacity, not its potential to
turn against us like HAL in
“2001: A Space Odyssey.” This
“black box” problem arises
from the trait that makes artificial intelligence so powerful:
its ability to learn and improve
from experience without explicit instructions.
Machines learn through artificial neural networks that
work like the human brain. As
these networks are presented
with numerous examples of
their desired behavior, they
learn through the modification
of connection strengths, or
“weights,” between the artificial neurons in the network.
Imagine trying to figure out
why a person made a particular decision by examining the
connections in his brain. Examining the weights of a neural network is only slightly
more illuminating.
Concerns about why a machine-learning system reaches
a particular decision are greatest when the stakes are highest. For example, risk-assessment models relying on
artificial intelligence are being
used in criminal sentencing and
bail determinations in Wisconsin and other states. Former
Attorney General Eric Holder
and others worry that such
models disproportionately hurt
racial minorities. Many of these
critics believe the solution is
mandated transparency, up to
and including public disclosure
of these systems’ weights or
computer code.
But such disclosure will not
tell you much, because the machine’s “thought process” is
not explicitly described in the
weights, computer code or
anywhere else. Instead, it is
subtly encoded in the interplay
between the weights and the
neural network’s architecture.
Transparency sounds nice, but
it’s not necessarily helpful and
may be harmful.
Requiring disclosure of the
inner workings of artificial-intelligence models could allow
people to rig the system. It
could also reveal trade secrets
and otherwise harm the competitive advantage of a system’s developers. The situation
becomes even more complicated when sensitive or confidential data is involved.
A better solution is to make
artificial intelligence accountable. The concepts of accountability and transparency are
sometimes conflated, but the
former does not involve disclosure of a system’s inner
workings. Instead, accountability should include explainability, confidence measures,
procedural regularity, and
responsibility.
Explainability ensures that
nontechnical reasons can be
given for why an artificial-intelligence model reached a
particular decision. Confidence
measures communicate the
certainty that a given decision
is accurate. Procedural regularity means the artificial-intelligence system’s decisionmaking process is applied in
the same manner every time.
And responsibility ensures individuals have easily accessible avenues for disputing decisions that adversely affect
them.
How do we ensure
that artificial
intelligence is
accountable?
Requiring accountability
would reassure those affected
by decisions derived from artificial intelligence while avoiding the potential harms associated with transparency. It also
decreases the need for complicated regulations spelling out
precisely what details need to
be disclosed.
There already are realworld examples of successfully
implemented accountability
measures. One of us, Curt
Levey, had experience with
this two decades ago as a scientist at HNC Software. Recognizing the need for better
means to assess reliability, he
developed a patented technology providing reasons and
confidence measures for the
decisions made by neural networks. The technology was
used to explain decisions made
by the company’s neural network-based product for evaluating credit applications. It
worked so well that FICO
bought the company.
This patented technology
also provides accountability in
FICO’s Falcon Platform, a neural-network system that detects payment-card fraud. Financial institutions and their
customers need to understand
why an incident of fraud is suspected, and the technology met
that challenge, opening the
door for Falcon’s widespread
adoption by the financial industry. FICO estimates that today Falcon protects approximately 65% of all credit card
transactions world-wide.
Falcon’s ability to detect
suspicious patterns of behavior has also found use in counterterrorism efforts. Following
the Sept. 11 attacks, the same
neural network technology was
used by airlines to identify
high-risk passengers. That’s a
far cry from Elon Musk’s assertion that artificial intelligence
will cause World War III.
Until recently the success of
systems like Falcon went
underreported. Artificial-intelligence pioneer John McCarthy
noted decades ago, “As soon as
it works, no one calls it AI anymore.” Further advances in artificial intelligence promise
many more benefits for mankind, but only if society avoids
strangling this burgeoning
technology with burdensome
and unnecessary transparency
regulations.
Mr. Levey is president of the
Committee for Justice. Mr.
Hagemann is director of technology policy at the Niskanen
Center.
My Kingdom for a Renewable Energy Source
By Lee E. Ohanian
And Ted Temzelides
‘I
n 50 years, every street
in London will be buried
under 9 feet of manure.”
With this 1894 prediction, the
London Times warned that the
era’s primary source of transportation energy—the horse—
would soon create an environmental crisis.
In New York City, about
100,000 working horses produced roughly 2.5 million
pounds of manure a day. Residents were exposed not only to
the stench but to biohazards
like anthrax. One commentator
estimated in 1908 that roughly
20,000 New Yorkers died each
year from diseases related to
horse waste.
But the deluge of dung predicted by the Times never arrived. Instead the free market
solved the problem in roughly
25 years, while creating new
goods and industries that
transformed society.
The enormous demand for a
cleaner and more efficient
source of energy led to remarkable innovations in the
internal combustion engine. By
1920 horses in cities had been
almost entirely replaced by affordable autos and trucks.
What 19th-century
British horses teach
us about free markets.
The revolution was not
driven by government. In fact,
the transition away from
horses would have taken longer if states had followed today’s policy of subsidizing specific energy sources.
Since the 1970s, politicians
have artificially pushed resources into renewable energy. Today the solar industry
employs nearly 400,000
workers. That sounds impressive, but it accounts for only
1% of America’s electricity
production.
Suppose governments in the
1890s, desperate to replace the
horse, had jumped on the first
available alternative, the steam
engine. Heavy subsidies would
have produced more steam engines and more research on
steam technology. This would
only have waylaid the development of the far superior internal combustion engine.
The lesson is that governments are in no position to
predict technological breakthroughs, and their attempts
to do so can delay innovations by entrenching inferior
technologies.
Diesel cars are another example. European states have
been subsidizing them for decades, but diesel engines create considerably more noxious
gases and particulates. Now
Britain and Germany are reversing their policies and trying to phase out diesel.
Or take the attempts to push
renewable energy into poor
countries. About 1.3 billion
people, many in sub-Saharan
Africa, lack electricity, making
it incredibly difficult to purify
water or preserve food and
medications. World-wide subsidies for renewables total more
than $100 billion a year, according to the International
Energy Agency. But scientists
still haven’t solved their core
problem: Peak electricity demand comes early in the morning and at night, when the sun
isn’t shining and the wind may
not be blowing.
Nearly a half-century of
subsidies has not delivered the
next energy revolution. The
great manure crisis of 1894
suggests a far better way to
advance clean, affordable and
safe energy: open competition
on a level playing field.
Mr. Ohanian is a senior fellow at Stanford’s Hoover Institution and a professor of
economics at UCLA. Mr. Temzelides is a scholar at the
Baker Institute for Public Policy and a professor of economics at Rice University.
BOOKSHELF | By John Steele Gordon
The Heat
Of the Moment
The Burning Time
By Virginia Rounding
(St. Martin’s, 459 pages, $29.99)
I
n the West today we take it for granted that one is free
to hold whatever religious beliefs one thinks are true
and that it’s no one else’s business, especially not the
state’s. But in the early 16th century, religion was very
much the business of the state, and the punishment for
heresy could be the most agonizing imaginable: being
burned at the stake.
As the Protestant Reformation began in 1517 and as
Henry VIII, about a decade later, sought to shed Catherine
of Aragon in order to marry Anne Boleyn, the definition of
heresy began to shift in often unpredictable ways. What
was heresy one week might be orthodoxy the next and vice
versa. Both ordinary citizens and powerful officials were at
risk. Many trimmed their sails as the religious winds
shifted. Others did not and accepted their fates.
Virginia Rounding, the
author of several books on
European history, takes us
through this treacherous epoch
in “The Burning Time.” Some of
the material she presents may
be familiar in its broad outlines,
not least from historical novels
and plays, famous movies, and
popular television shows. But it
is certainly worth our learning
more about the broader context
and grasping in detail the fraught
conditions under which
individuals were forced to make
horrific moral choices.
Henry VIII, Ms. Rounding reminds us, had
been a thoroughly orthodox Roman Catholic. But Catherine of
Aragon could give him no more children, and only a daughter
survived to adulthood. Henry wanted a son. When the pope,
under pressure from Catherine’s nephew, Charles V, the Holy
Roman Emperor, refused an annulment, Henry declared
himself the sole head of the Church in England.
Henry’s lord chancellor, Thomas More, had once
interrogated and condemned men and women suspected of
defying Roman Catholic doctrine by denying the miracle of
transubstantiation (the belief that the bread and wine at
communion turns into the body and blood of Christ). But
he could not accept the deposition of the pope and the
installation of the king as the head of a breakaway church.
On July 6, 1535, Henry had him beheaded for treason. John
Fisher, the bishop of Rochester and one of the most learned
men in England (and once young Henry’s tutor), had been
beheaded several days earlier for the same reason.
What was heresy one week might be orthodoxy
the next, and vice versa. And the punishment
could be the most agonizing imaginable.
As the “new learning” and Protestantism began to creep
into the English realm in the 1520s, Henry tried hard to
thwart it. The Church of England, under Henry, had
separated from Rome but had not embraced the
Reformation’s principal tenets—it retained a strong
Catholic cast. But books in English advancing the cause of
“reform,” including English translations of the Bible, were
smuggled in anyway. Henry eventually permitted the
distribution of the Bible in English and even ordered a copy
to be made available in each parish church. But otherwise
his opposition remained firm, and a steady stream of
Protestants, judged heretical by ecclesiastical courts, were
marched to Smithfield, London’s notorious execution site
for heretics, where they were burned.
Among them was Anne Askew, who made a point of
reading the new English Bible aloud and holding Protestant
views. She was a clever and agile debater and seemed to
delight in sparring with the bishops who questioned her.
She was even put on the rack to make her abjure her
beliefs. When she wouldn’t, she was carried to Smithfield in
a chair, since she could no longer walk. There she burned
alongside a lawyer, a tailor and a former Franciscan friar.
According to one witness, Anne was “smiling throughout
her torment and looking like an angel.”
With the death of Henry in 1547 and the accession of his
9-year-old son, Edward VI, power passed to the new king’s
uncle, the Duke of Somerset, a Protestant. Anne Askew’s
beliefs suddenly became orthodoxy. Indeed, one woman
condemned for heresy in this period said to those who sent
her to the stake: “It is a goodly matter to consider your
ignorance. It was not long ago since you burned Anne
Askew for a piece of bread, and yet came yourselves soon
after to believe and profess the same things for which you
burned her.”
Catherine of Aragon’s daughter, Mary, an ardent
Catholic, came to the throne in 1553, and once again the
tide turned. The Catholic bishops who had been deprived
of their sees and sent to the Tower of London were
released and reinstated. A Catholic was appointed
archbishop of Canterbury, and Protestants were, once
again, sent to the stake, in larger numbers than before
(almost 300 during Mary’s five-year reign). The slaughter
earned the queen the soubriquet of “Bloody Mary” and all
but guaranteed that England, recoiling from such horror,
would be a Protestant nation once her half-sister,
Elizabeth I, came to the throne.
Running throughout Ms. Rounding’s account is the
fascinating tale of Richard Rich, a now-obscure figure but
in his time a man to be reckoned with. Tudor politics was a
game often played for mortal stakes. Rich was so adept at
it that he rose from a minor merchant family to become
lord chancellor, not to mention an immensely wealthy man.
Unlike many others, he died in bed of old age. To get that
far, he had to betray more than one person who had helped
him up the ladder. His perjury would put the heads of both
Thomas More and Thomas Cromwell, Henry’s chief minister
in the 1530s, on the block.
The contrast between Rich’s self-serving strategies and
the quiet courage of those who died horrible deaths for
their beliefs adds greatly to the power of Ms. Rounding’s
disturbing and often painful story. The sheer number of
victims in “The Burning Time” can make it difficult at
times to follow the broader dramatic arc. Still, Ms.
Rounding vividly conveys how the blood of the martyred
dead became the predicate for the religious liberty we
now enjoy.
Mr. Gordon is the author of “An Empire of Wealth:
The Epic History of American Economic Power.”
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.
A16 | Monday, November 13, 2017
OPINION
R
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
ObamaCare Tax Relief
Small Businesses Deserve Fair Share of Cuts
epublicans in Congress are plowing it, you don’t have to pay a penalty. There
ahead on tax reform, and one obstacle would be no changes to benefits or coverage
is the complexity of Senate budget for pre-existing conditions, and not a dollar
rules that limit how much
taken out of Medicaid, a
taxes can be cut. The good
Killing the individual word that would appear nonews is that for once Washwhere in the bill.
mandate can serve
ington’s fiscal fictions could
Note that the mandate is a
be deployed to improve poltax on the poor. More than
the cause of tax and
icy by repealing ObamaCare’s
one in three households that
health-care reform.
individual mandate as part of
paid the “individual shared
tax reform.
responsibility payment” in
The Senate Finance Com2015 earned less than $25,000
mittee on Thursday released the details of its and more than 90% made less than $75,000, actax proposal, which includes a permanent 20% cording to IRS data. For instance: More than
corporate rate and more. Senators Pat Toomey 34,000 families in Maine paid $15 million to
and Bob Corker cut a budget deal to allow for the government for the high privilege of not
$1.5 trillion in net tax cuts over 10 years with- buying ObamaCare. Repeal would be tax relief
out accounting for faster economic growth (and for low-income families.
more revenues) as a result of reform.
Republicans can use the money or lose it.
The trick is Senate procedure. The GOP is We’re told the Trump Administration has
invoking a budget process that allows the drafted language that would expand the manparty to pass the bill with 51 votes. But Repub- date’s “hardship exemption” that frees more
licans have to comply with the Senate’s Byrd people from the penalty. CBO may also revise
Rule, which says the legislation can’t add to its methods and thus its cost estimate in the
the deficit beyond the 10-year budget window coming months. In other words, why would
starting in 2028. The Senate draft doesn’t Congress pass up this one-time-only offer of
meet this standard, so some parts of the bill free money for tax reform?
may have to expire after a decade unless ReAnother dividend is that health-care reform
publicans can fill the hole. It’s a shame this may be easier in the future when CBO can’t terprocess pummels good policy.
rify the public with fanciful estimates of how
Enter the idea of repealing ObamaCare’s in- many Americans would lose coverage without
dividual mandate. The Congressional Budget the mandate. CBO has a lousy record of predicOffice predicts that dumping the mandate tions—ObamaCare enrollment is 60% below its
would “save” $338 billion over 10 years—and estimate—but the media treat the place as if
the savings continue in the following decades. it were run by oracles.
The budget gnomes assume that if people are
Democrats will call repeal a budget gimmick,
not forced to buy health insurance, fewer peo- and they would know: The Affordable Care Act
ple will sign up for subsidies or Medicaid. The included a long-term care program that was
idea that millions of people will dump free written to collect premiums and then go bankhealth care is one oddity of CBO methods, but rupt to game the 10-year budget window, and
that’s an editorial for another day.
it counted a federal student-loan takeover as
Some Republicans are traumatized from a money-maker for Treasury. All of this was ficthe GOP’s health-care failure and don’t want tion. But repealing the individual mandate is
to complicate tax reform with fights over in- not a ploy; it’s a GOP priority.
surance coverage. But remember that Chief
Senate Finance this week will mark up its
Justice John Roberts called the mandate pen- bill, and the best move for tax and health-care
alty a tax. This is a political fight the GOP can reform is to include the mandate repeal. This
win: If you like your ObamaCare plan, you can is a case where budget scoring can serve the
keep it. If you don’t want it or can’t afford cause of good policy.
P
A Nafta Recession?
resident Trump keeps touting the 3% damage that would ensue to North American
U.S. GDP growth of the last two quarters and even global supply chains.
and “record” stock prices, and the econOnly one in four of the economists anticiomy is his best talking point.
pates a U.S. withdrawal, but
The biggest threat to
But he might want to take a
that also may be optimistic.
look at the latest Journal surMr. Trump almost pulled out
the Trump economy
vey of economists about the
once, and he seems to believe
is his trade agenda.
impact of a U.S. withdrawal
that Mexico and Canada have
from the North American Free
no choice but to bend to U.S.
Trade Agreement.
wishes. But those two counNot a single economist said that the with- tries are already moving to diversify their traddrawal Mr. Trump has threatened would help ing options, and they have their own domestic
the economy. Some 82% said the economy political pressures not to cave to the U.S.
would grow more slowly for the next two years
Mr. Trump is doing well overall on economic
than it would otherwise, and 7% predicted a re- policy, with deregulation and support for tax recession. That underestimates the risks of reces- form. But his Achilles’ heel is his protectionist
sion in our view, given the political shock from trade agenda and his lack of knowledge about
such a reckless act by a U.S. President and the the international economy.
T
Putin’s Syria Play
he press corps spent the weekend ob- area has been significantly reduced, and thousessing about what Donald Trump sands of Syrian families have returned to
thinks about what Vladimir Putin be- their homes.” The U.S., Russia and Jordan
lieves about Russian meddling
have now signed a MemoranTrump and Tillerson
in the U.S. election. #everdum of Principles that calls
greentweets. The real news is are ceding the advantage for the “reduction and ultiMr. Trump’s deal announced
mate elimination of foreign
to Russia and Iran.
in Vietnam with the Russian
forces” in Syria, especially in
strongman for the “deconflicthe south. But there’s no evition” of Syria. This is ceding
dence that Iran or Hezbollah
the regional advantage to Russia and Iran.
are leaving the area.
That’s the take-away of the joint statement
The Trump Administration is also hoping
issued Saturday by the U.S. and Russia that Mr. Putin will help broker a United Nations-su“builds on months of fairly intense discussions” pervised peace process pursuant to U.N. Secuand “behind-the-scenes diplomacy,” according rity Council Resolution 2254 that passed in Deto State Department officials. The three-part cember 2015. The Russians have since
strategy aims to achieve an “enduring defeat” convened separate meetings with the Iranians
of Islamic State, “de-escalate the civil war” and and Turks to carve up the country as they see
hold “U.N.-supervised and organized parlia- fit, which the Trump Administration has legitimentary and presidential elections.”
mized by sending an official observer to witISIS is nearly ousted from its caliphate, not ness the talks.
that the Russians helped much. The dirty work
State officials explained Saturday that they
was done by Arab and Kurdish fighters backed “started to see signs that the Russians and the
by U.S. air power and special forces on the regime wanted to draw the political process
ground. As Secretary of Defense Jim Mattis told away from Geneva,” and so “Secretary Tillerson
NATO in Brussels last week, 95% of the territory felt it was quite important to get President Puthat Islamic State held in Iraq and Syria has tin on the record” to support the U.N.-led pronow been reclaimed.
cess. As if the Russian’s words are his bond. If
The question is what comes next. In July six years of fighting in Syria have taught anyPresident Trump agreed with the Russians to thing, it’s that military facts on the ground will
enforce a deconfliction zone in southwestern determine the parameters of any peace.
Syria near the Israeli and Jordanian borders.
President Trump, meanwhile, tweeted that
The point was to stop the fighting, address the the United States needs “a good relationship
humanitarian crisis, and allow U.S.-backed with Russia” to solve crises like Syria, despite
forces to crush the Islamic State in the north zero evidence Mr. Putin shares America’s straand eastern parts of Syria.
tegic interests. The Russians, like the Iranians,
Instead, the cease-fire solidified the gains want to prop up the Assad regime and establish
that Bashar Assad’s Syrian government forces military bases in Syria to threaten NATO and
had already made in western Syria. And it freed Israel. Their immediate near-term goal is to reup the Russians and Iranian-backed fighters to take the energy-rich eastern regions of Syria
divert resources eastward, where the Syrian from the Syrian Democratic Forces because
Democratic Forces allied with the U.S. had made they realize that “seizing the oil,” to borrow a
progress against Islamic State. The Institute for phrase, is in their interests.
the Study of War’s Christopher Kozak noted SatThe big picture is that Mr. Trump and Secreurday that the compact also “has preserved— tary of State Rex Tillerson seem to be using the
rather than limited—the freedom of movement diplomacy of deconfliction to justify a retreat
of Iran and Hezbollah along the Golan Heights from post-ISIS Syria. Where that leaves Amerand Syrian-Jordanian border.”
ica’s Kurdish and Syrian allies isn’t clear,
Yet the U.S. State Department claims the though perhaps they’re on their own. Mr. Putin
deconfliction experiment, “while not perfect,” is winning in Syria no matter his deceptions
has been a success because “violence in the about election meddling.
“In Tax Bill, How You Get Rich
Matters” (page one, Nov. 4) quotes
Rep. Chris Collins (R., N.Y.) stating
that the tax bill is intended to lower
the rate for companies making widgets and employing other people, not
for doctors, lawyers or architects.
As a retina surgeon, I don’t make
widgets, but I do employ other people—lots of other people. In fact,
most doctors do. Over 60% of doctors
are entrepreneurs in private practice.
The income doctors receive mainly
goes to pay their staff and other expenses. I provide jobs for 10 fulltime-equivalent nurses, technicians,
personal managers, billers, coders, receptionists, bookkeepers, IT specialists, accountants and attorneys. Without this army of trained assistants, it
would be impossible to care for patients or deal with the burgeoning
bureaucracy of insurance and governmental regulations governing the provision of health-care services.
I can’t speak for the attorneys or
architects (who I imagine also gener-
ate a lot of jobs in America beyond
their own paycheck), but I would like
to see our government’s new tax plan
be as generous to small businesses as
they plan to be with large multinational corporations.
MARK W. BALLES, M.D.
Portland, Maine
In “House GOP Readies for Tax
Battle” (page one, Nov. 3), I note with
personal interest that the proposed
plan eliminates the medical deduction. Loss of that deduction will be
more than a political land mine for
the elderly in nursing care; it will be
a financial disaster. I prepare tax returns for some very elderly individuals, many of whom are widows in
full-time nursing care. Their medical
costs are greater than their incomes,
and every year their savings take a
hit to pay for their care. Under the
proposed plan, these people will end
up on Medicaid sooner.
DALE TATUM
Palo Alto, Calif.
The NFL Faces Many Issues, Some Systemic
The answer to Jason Whitlock’s
question, “Is Roger Goodell Deliberately Pushing the NFL Leftward?”
(op-ed, Nov. 6),k is yes. Whether Mr.
Goodell has an overarching liberal
agenda is debatable, but there is no
doubt that many in the media who
suddenly are huge fans of NFL players exercising their free-speech
rights have ideological skin in a
game that they otherwise detest.
The secular trends of cable cordcutting and less television viewing,
combined with NFL overexposure, explain the drop in ratings with any
short-term negative reaction to
player protests being an insignificant
factor.
TOM GARDNER
Richmond, Va.
No doubt I am not alone in wondering why the NFL owners would
want to continue to pay their commissioner, Roger Goodell, in excess
of $30 million a year. Whether it’s
the Ray Rice debacle, deflategate or
now the disrespect players have
shown for our national anthem and
the American flag, Mr. Goodell has
shown exceedingly poor judgment.
The league is suffering at the hands
of 32 owners who keep him in office.
They seem to be unaware that at
least 100 competent CEOs would relish the job at a fraction of the current salary and do it much better.
JAY LEHR
Ostrander, Ohio
I was at the bar at a rural country
club in western Pennsylvania. The attitude there is that if the NFL
doesn’t understand and respect the
founding principles of our country,
then who needs it? The NFL is free
to do and say whatever it wishes.
But don’t expect us to follow or support it.
R.I.P. NFL.
RICHARD J. KRAULAND
Pittsburgh
U.S. Must Be Realistic About Mideast Power
Suzanne Maloney and Michael
O’Hanlon’s “A Strategy for the PostISIS Middle East” (op-ed, Nov. 8)
seems naive. They write as if the U.S.
were still the central strategic player
in the region, which it is not. Their
recommendations assume, wrongly,
that Washington has wide latitude
and independent options. Iran is
mentioned only as a power to be deterred or limited rather than a permanent force to be reckoned with
across the Arab world.
Worst is that Russia isn’t mentioned at all, even with regard to
Syria’s future. Yet it was Russian
military intervention along with
Iran’s that saved the Assad govern-
What Were Their Survival
Odds? I’m Here Anyway
David Stras’s “My Grandparents
Saw Light, Even After the Dark of
Kristallnacht” (op-ed, Nov. 9) seems
very familiar to me as my father was
deported to Auschwitz, too. The
number tattooed on his arm was
115172, only 1,850 prisoners before
Mr. Stras’s number. I figure that puts
Mr. Stras’s grandfather in the fourth
transport that arrived in Auschwitz
after my father’s (on April 13, 1943),
or just before April 22, 1943. The Nazis were selecting only about 250 to
500 men, from each 3,000 person
transport, to work in Auschwitz and
the various satellite camps. My father, an electrician, was sent to Buna
(i.e., IG Farben’s Monowitz BunaWerke factory), where Elie Wiesel
worked. My mother was also deported to Auschwitz (actually Birkenau). Her number was 76864. My
parents never explained their numbers to me, but I noticed that most
of their friends in my Brooklyn
neighborhood also had numbers on
their arms, and that they spoke a variety of languages.
My father was one of 68,000 Sephardic Jews who were deported to
Auschwitz from Thessaloniki, Greece.
Only about 1,500 survived, so his
chance of survival was about 2.2%.
My mother was one of 1,000 deportees from Kastoria, Greece. Only 35
survived. Her chance of survival was
3.5%. The probability that both of
these two people would survive, ultimately to have a child, is 0.08%. This
is equivalent to surviving four rounds
of Russian roulette, each played with
five bullets in the revolver.
SAM MIRANDA
Silver Spring, Md.
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.
ment. The U.S. and its allies, they
say, should now “work around”
Syria’s Assad government on a strategy of “regionalism,” as if Russia and
Iran would cooperate. They suggest
“a new, multilateral Marshall Plan”
for the Middle East (anchored in Jordan), estimating the cost to U.S. taxpayers as “perhaps as much as a few
billion dollars annually.” This underestimate is mind-boggling. Rebuilding Syria, let alone the Middle East,
will cost tens of billions of dollars
over an extended period.
The one saving grace is that Moscow and Tehran will have to pony up
for their military success.
EM. PROF. RONALD TIERSKY
Amherst College
Queens, N.Y.
Science Can Raise Moral
Issues but Not Answer Them
While I cannot disagree with the
statement that “good science should
rule U.S. climate policy” (Letters,
Nov. 8), that is not necessarily the issue we need to address. You can accept 100% of the “scientific consensus” on global warming and still
disagree on what actions to take.
Does science require that we subsidize wind and solar power? Does science require that we restrict development in flood-prone coastal areas?
Does science require that we should
pursue carbon sequestration?
We have to recognize that science
is essentially amoral. Science didn’t
determine whether the atomic bomb
was a good or bad idea. Science says
nothing about whether we should
pursue genetic engineering of human
embryos. All of these are political and
moral questions about which people
can honestly disagree.
JAMES B. WADDELL
Columbus, Ohio
Pepper ...
And Salt
THE WALL STREET JOURNAL
“In time you will come to see that
football is ballet with taco chips.”
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.
Monday, November 13, 2017 | A17
OPINION
Hillary Clinton, the DNC and the Law
By Cleta Mitchell
And Hans von Spakovsky
Did their arrangement
violate legal limits on
coordination between
a candidate and a party?
Then, in an August 2015 memorandum of understanding, the DNC
essentially handed over its operations to the Clinton campaign for
the next 15 months.
The purpose of joint fundraising
committees is to allow more than
one entity to collaborate in raising
money and share in the costs. Each
participant is subject to federal contribution limits. When the party itself
is a participant, its committee (in
this case the DNC) normally handles
accounting and financial controls.
Not here. The Hillary Victory Fund
ADAM BETTCHER/GETTY IMAGES
D
onna Brazile has confirmed Bernie Sanders’s
worst suspicions. Ms. Brazile, who served as interim
chairman of the Democratic National Committee during the
fall 2016 campaign, says in a new
book that during the primaries, the
DNC was controlled by Hillary Clinton’s campaign. Ms. Brazile claims
the arrangement was “not illegal,”
but that is far from clear.
Ms. Brazile reports that when she
arrived on the job in July 2016, Gary
Gensler, the campaign’s chief financial officer, told her the DNC was
fully under the control of the campaign. In September 2015, 10 months
before Mrs. Clinton’s nomination,
the party had moved its bank account to the same bank in New York
used by the Clinton campaign and
created a joint fundraising committee, the Hillary Victory Fund, whose
treasurer, bank account, and control
were vested in the campaign.
Hillary Clinton speaks to the DNC summer meeting, Aug. 28, 2015.
was controlled by the Clinton campaign, with a campaign employee as
treasurer and the fund’s bank account established at the Clinton campaign’s bank. According to Federal
Election Commission reports, the Hillary Victory Fund has raised more
than $526 million.
The DNC asserted its “neutrality”
by also entering into a joint fundraising committee with the Sanders
campaign. It raised a total of
$1,000. And the Bernie Victory
Committee treasurer was the DNC’s
designee.
“Money in the battleground
states usually stayed in that state,”
Ms. Brazile writes, “but all the other
states funneled that money directly
to the DNC, which quickly transferred the money to Brooklyn”—i.e.,
Clinton headquarters. She says state
parties raised $82 million, of which
they kept less than 0.5%.
The memorandum of understanding promised the Clinton campaign,
among other things, “complete and
seamless access to all research work
product and tools” paid for by the
DNC, despite Federal Election Commission regulations that prohibit
privately sharing such research with
a candidate without either reporting
the costs as an in-kind contribution
or allocating them against the
party’s coordinated spending limits
for that candidate.
The memo also tied transfers of
funds raised for the DNC by the Hillary Victory Fund to operational
control of the DNC’s expenditures:
“The release of the Base Amounts
each month are conditioned on the
following: . . . hiring of DNC Communications Director . . . DNC senior
staff . . . joint authority over strategic decisions . . . alerting HFA”—Hillary for America, the campaign—“in
advance of . . . any direct mail communications that features a particular Democratic primary candidate or
his or her signature.”
Contributions to the DNC, even
though made through the Hillary
Victory Fund, were required by law
to be transferred to the party and
could not legally be withheld by the
Clinton-designated treasurer. Nor
does the law allow a single candidate to control a political party’s operations and expenditures.
National party committees have
higher contribution limits than candidates do—$334,000 a year vs.
$2,700 for each election. The memorandum raises the possibility that
Clinton campaign took advantage of
the DNC’s higher limits, then availed
itself of all the resources the DNC
could buy—without having any of
the attendant costs or expenditures
assessed against the campaign.
There are strict statutory limits
on what a party committee can contribute to any candidate and what a
party can spend in coordination
with its candidates. We don’t like
limits on the ability of parties to
support their candidates. But campaign-finance zealots, egged on by
media outlets (which are not subject to any limits), made certain
that the McCain-Feingold law of
2002 stringently limited coordination between candidates and political parties. Although the Supreme
Court struck down parts of McCainFeingold in the 2010 Citizens United
case, the coordination limits still
apply. The FEC and the Justice Department should investigate the
Clinton-DNC arrangement.
Candidate Clinton railed against
Citizens United—a case that involved
a documentary film critical of her—
arguing that “big money” and “secret spending” are ruining our politics. Is it too much to ask that those
who loudly demand greater regulation of political speech and spending
themselves abide by the laws already on the books?
I
f you were deliberately trying to
design the most arbitrary, painful and pointless tax possible,
how would you go about it?
First, you would structure it to inflate the cost of an essential product.
Then, you’d create exemptions so
vast that only 5% of taxpayers were
subject to it. You might even ensure
that it hit people only when they
were particularly vulnerable—like
when they’d lost a job. Finally, you
would use it to drive enrollment in
entitlements, so that it increased the
federal deficit by $338 billion.
In short, you would design something that looks very much like the
Affordable Care Act’s individual
mandate.
Sen. Tom Cotton (R., Ark.) has
made headlines by suggesting that
tax reform should include a repeal of
the mandate—an annual tax of between $695 and $13,380 imposed on
6.5 million American households. In
defense of the mandate, ObamaCare’s
defenders have resorted to hyperbole
and scare-mongering, probably because the penalty is so difficult to
justify on the merits.
In most insurance markets, people
seek coverage in proportion to the
risk they expect to face, and insurers
receive payment in proportion to the
cost they expect to cover. This approach prevailed for nongroup
health insurance in most states prior
to ObamaCare. It produced stable
markets with premiums of less than
half what currently prevails on the
exchanges, but often failed to ensure
affordable coverage for individuals
with major chronic conditions.
The ACA has reversed this situation, providing affordable coverage
to individuals with pre-existing conditions, but yielding plans that are
priced well above the needs of most
Americans. The average annual premium was $5,712 in 2016, while median health-care spending was only
$709 in 2014.
The individual mandate was intended to prevent the bulk of individuals from fleeing this unappealing arrangement. Its advocates have
argued that the mandate reduces
premiums on the exchanges, but this
is only true to the extent that it
pushes more cost-effective alternatives out of reach.
It doesn’t even further the
ACA’s core goal of helping
people with pre-existing
conditions get coverage.
As a newly released Manhattan
Institute Issue Brief demonstrates,
the mandate is superfluous to the
ACA’s core guarantee of affordable
coverage for individuals with pre-existing conditions. In fact, it is subject to so many exemptions that recent studies have failed to discern
any impact of the mandate on the
proportion of Americans who are
uninsured.
The ACA’s guarantee of affordable insurance to low-income individuals and those with pre-existing
By Lou Weiss
T
he National Football League
has lately been a cause of
rancor and division. Most
blame the anthem protests and
concussions, but the elaborate choreography, mimes, games and skits
displayed after every touchdown,
sack, interception and fumble may
also have something to do with it.
The NFL apparently feels that this
goofiness makes good television
and has given the players latitude.
Why not go all the way and have
the referees award style points for
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Robert Thomson
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
William Lewis
Chief Executive Officer and Publisher
DEPUTY MANAGING EDITORS:
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett,
Washington; Andrew Dowell, Asia;
Christine Glancey, Operations;
Jennifer J. Hicks, Digital;
Neal Lipschutz, Standards; Alex Martin, News;
Shazna Nessa, Visuals; Ann Podd, Initiatives;
Matthew Rose, Enterprise;
Stephen Wisnefski, Professional News
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Suzi Watford, Marketing and Circulation;
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer & CFO;
Katie Vanneck-Smith, President
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
especially creative displays?
The standard game of dice
might not be worth an extra point,
but a more sophisticated thespian
Antonio Brown posing
with the football like
Hamlet holding Yorick’s
skull? Two points.
adventure could be. Antonio Brown
posing with the football like Hamlet holding Yorick’s skull? Two
points. A trio of offensive linemen
emulating Macbeth’s witches stirring their cauldron ought to be
worth a field goal. Who wouldn’t
buy a ticket to watch dreadlocked
Marshawn Lynch as Lady Macbeth
washing the blood off of her hands
after the killing of Duncan? Out
damn spot!
Dez Bryant, meet Desdemona.
Modern idioms would work just
as well. Imagine T.J. Watt as Stanley Kowalski, dropping to his knees
after a sack and yowling, “Flacco!”
One point. During kickoffs the
Packers could stage “The Icemen
Cometh.” Picture Tom Brady and
Rob Gronkowski in an end-zone interpretation of “Waiting for Goodell.” Four points.
The more points at stake, the
more creative the players would
get. Bible stories offer a rich source
of material: the parting of the Red
Sea, the Plagues of Egypt, or Moses
W
Riyadh, Saudi Arabia
hen Crown Prince Mohammed bin Salman launched
Vision 2030, Saudi Arabia’s
progressive reform program, last
year, the international community
responded with cautious encouragement. Few disputed the necessity
for reform or thought it failed the
test of ambition. But there were
doubts about Saudi Arabia’s ability
to deliver.
Some openly said Saudi Arabia
would not be able to take the painful decisions and implement the difficult trade-offs needed to push
through such dramatic change and
transformation. The implication was
that the old system and traditions
would stymie any attempt to modernize our economy and society to
the level we ourselves set.
The anticorruption
actions will help make
Saudi Arabia a vibrant
21st-century economy.
throwing down the Ten Commandments in the world’s first recorded
spike.
Want to involve the kids? Odell
Beckham Jr.’s fake naps could become an homage to “Goodnight
Moon.” That urinating shtick he
does might reference Clifford the
Big Red Dog. One point each.
Historical events related to the
team’s hometown would work.
Think of the Patriots doing the
Boston Tea Party, the 49ers making
tech elevator pitches, or the
Browns re-enacting the burning of
the Cuyahoga River.
We all know the Statue of Liberty
play. How about Le’Veon Bell posing
as Rodin’s Thinker? Two points.
The
theatrical
celebrations
would attract a whole new breed of
sideline coach. Teams would hire
Frenchmen in whiteface to school
running backs in pantomime. Many
wide receivers are already accomplished actors feigning interference
to draw penalties. Rex Reed would
join Terry Bradshaw and Jimmy
Johnson for postgame recaps.
And imagine the Monday morning
water-cooler conversations. “Hey,
did you see Aaron Rodgers’s interpretation of Ibsen last night?”
“I preferred Dak Prescott’s take
last year.”
These creative displays would be
the perfect melding of sport and
culture. Stanislavsky—isn’t he a
linebacker for the Bears?
Mr. Weiss is a Pittsburgh carpet
salesman.
Mr. Qasabi is the Saudi minister
of commerce and investment.
Ms. Mitchell is a partner at Foley
& Lardner LLP who practices federal
campaign finance law. Mr. von Spakovsky is a senior legal fellow at the
Heritage Foundation and a former
commissioner on the Federal Election Commission.
he said, “we could try that to solve
homelessness by mandating everybody buy a house.”
Without the mandate, the cost of
supporting those with pre-existing
conditions would be spread more
broadly, including the bulk of upperincome individuals who receive employer-sponsored coverage.
Of the 18 million people enrolled
in the individual market, only two
million are estimated to have major
pre-existing conditions. Repeal of
the mandate would allow the bulk of
them to choose soon-to-be deregulated insurance at half the cost of
ACA-compliant plans. As 70% of individual-market enrollees would remain eligible for subsidies, they
would not be adversely affected.
Only a tiny subset of Americans
would be likely to see any increase
in premiums from the repeal of the
individual mandate—and CBO has
estimated this increase would only
amount to 10%.
The individual mandate is not essential to the ACA’s coverage expansions. It serves only to accentuate
the law’s inequities.
Mr. Pope is a senior fellow at the
Manhattan Institute.
Football Needs Some Real Drama
Rupert Murdoch
Executive Chairman, News Corp
Matthew J. Murray
Deputy Editor in Chief
conditions is due entirely to the
law’s subsidy provisions. These expand automatically to whatever
level insurers need in order to
bring a plan to market, which limits
premiums and out-of-pocket costs
as a share of income. This principle
holds regardless of the ratio of
healthy to sick enrollees in the exchange.
For all the rhetoric about “shared
responsibility,” the ACA deliberately
carved the healthiest upper-middleclass individuals out of the exchange
risk pools by giving adults under 26
the right to claim health-care benefits through their parents’ insurance
coverage.
The main effect of the mandate
has been to concentrate the burden
of subsidizing the chronically ill on
those who lack employer-sponsored
health insurance or eligibility for
public entitlements. This is a very
low-income group: 79% of households that had to pay the mandate
tax (which starts at $695 per year
for individuals earning more than
$10,350) had annual incomes of less
than $50,000. It’s no wonder that
Barack Obama opposed this funding
mechanism during the 2008 primaries. “If a mandate was the solution,”
By Majid Al Qasabi
While we knew differently, we
understood the doubters. Saudi Arabia is a rich nation, blessed by the
discovery of oil more than 80 years
ago. Yet our wealth has not transferred into opportunity for all.
Those seeking to do business in our
country have not faced a predictable business environment, a familiar commercial legal framework, or
a dynamic, entrepreneurial culture.
Corrupt practices complicated matters further.
The Supreme Anti-Corruption
Committee’s recent enforcement actions should encourage those who
doubted Saudi Arabia’s commitment
and ability to deliver the goals of
Vision 2030 at the pace our economic and demographic realities
demand. Yet we have also seen
some misguided theories about
what motivated our country to take
these steps, which the overwhelming majority of Saudi citizens have
embraced.
The investigations, which have
been in progress for three years,
have shown that more than $100
billion has been misappropriated
through systematic corruption and
embezzlement over several decades.
That may prove to be a conservative
estimate. Moreover, the decision to
undertake this investigation and to
act on its findings, regardless of
who was found to be corrupt, was
taken at the start of the investigation, not at its conclusion.
As outlined in the statement by
Attorney General Saud Al Mojeb, so
far 208 individuals have been arrested, with seven subsequently released without charge. All those detained have had their rights
respected and will be afforded due
process. They are being handled
sensitively and responsibly.
Given the magnitude of the allegations, we have suspended the personal bank accounts of those
charged. But we have taken steps to
ensure that the companies they own
continue to operate normally, and
investors will remain unaffected by
these actions. Normal commercial
activity continues.
As we diversify our economy beyond oil, we are looking to invest in
our people and invest our assets so
that we can support this process of
change. Opportunity must become
available to all in the kingdom.
Our young people, men and
women, deserve and demand to
live in a nation truly built for the
21st century. This is not about
Saudi Arabia catching up; this is
about Saudi Arabia shifting to the
forefront of development, in partnership and collaboration with the
international community of nations, investors and people. For too
long Saudi Arabia has been behind
the curve. Now we are determined
not just to catch up, but move
ahead of it.
This is a watershed moment. The
old ways have ceased to be sustainable long ago and must be replaced.
The new way will offer a predictable
long-term approach and transparent
business environment for investors,
who will be surprised by the burgeoning talent and potential of our
young people. There is no going
back.
Saudi Arabia is changing. The
message is clear and the goals are
defined. We are serious, and we are
committed to this process, in letter
and spirit. We will not avoid the difficult short-term decisions if they
mean delivering the essential longterm goals of a thriving economy, a
vibrant society and a responsible
nation.
The Individual Mandate Is The Worst Tax Ever
By Chris Pope
Riyadh Is
Delivering on
Vision 2030
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
A18 | Monday, November 13, 2017
THE WALL STREET JOURNAL.
I CAN FIND
A BAD APPLE
AMONG A BILLION
IN JUST
SECONDS.
With IBM Blockchain,
companies like Walmart will
be able to know where their
food was grown and how
and when it was shipped.
Transparent supply chains
help them spot food
issues fasteróso one bad
apple doesnít become one
big headache. Find out more
at ibm.com/you
This is supply chain to the
power of IBM.
IBM and its logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. See current list at ibm.com/trademark. Other product and service names might be trademarks of IBM or other companies. Statements regarding IBM’s future direction and intent are subject to change or withdrawal without notice. ©International Business Machines Corp. 2017.
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
TECHNOLOGY: ACCELERATORS GET STARTUPS UP TO SPEED ON FINANCE B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
Last Week: S&P 2582.30 g 0.21%
S&P FIN g 2.65%
* *
S&P IT À 0.002%
Monday, November 13, 2017 | B1
THE WALL STREET JOURNAL.
DJ TRANS g 2.60%
WSJ $ IDX g 0.43%
LIBOR 3M 1.413 NIKKEI 22681.42 À 0.63%
See more at WSJMarkets.com
Brookfield Bids for Rest of GGP
BY DANA MATTIOLI
Brookfield Property Partners LP has made a $14.8 billion offer to acquire the shares
of mall owner GGP Inc. that it
doesn’t already own, according
to people familiar with the
matter.
Brookfield has offered to
pay $23 a share for the remaining 66% of GGP, half in
cash and half in equity, some of
the people said. GGP investors
could choose either cash or
0.9656 of a limited-partnership
unit of Brookfield Property for
each share, subject to proration that keeps the consideration of cash and units from
Long Rally
Appears
A Bit Worn
each exceeding $7.4 billion.
On Friday, GGP shares
closed at $22.20, having
surged on reports earlier in
the week of a potential deal
between the companies.
Brookfield owns about 34%
of Chicago-based GGP, formerly known as General
Growth Properties, which has
a market value of about $21
billion.
There is no guarantee that
GGP will agree to the offer,
which Brookfield submitted to
the company’s board Saturday,
according to a person familiar
with the matter. Any deal
would also be subject to approval from a majority of non-
Brookfield-affiliated
GGP
shareholders.
GGP owns around 125 highend retail centers around the
U.S., including Tysons Galleria
near Washington, D.C., Glendale Galleria outside Los Angeles and Chicago’s Water Tower
Place. The company emerged
from bankruptcy in 2010 with
backing from Brookfield and
other investors.
Brookfield Property owns or
operates office properties, retail centers, multifamily housing units among about $68 billion in total assets. The firm is
part of Brookfield Asset Management, an alternative-asset
manager with more than $265
billion under management, including about $150 billion in
real estate. Its portfolio includes London’s Canary Wharf
and Brookfield Place in lower
Manhattan.
If a deal is reached, it would
come at a tough time for mall
operators, which are struggling to adapt to the migration
of shoppers to the web. Before
GGP shares rallied earlier in
the week, they were down
about 25% so far this year.
GGP operates “A malls,”
premium properties that house
movie theaters, restaurants,
ice-skating rinks and other entertainment venues alongside
traditional retailers.
Higher Online
While its properties have
held up better than lower-end
malls, it has made some
changes to adapt to shifting
consumer behavior.
Like other mall operators,
GGP has taken back spaces
from dozens of department
stores that no longer draw the
heavy foot traffic they once
did, replacing them with gyms,
high-end grocery stores or
fast-fashion retailers.
Part of the rationale of the
proposed deal would be to
help the mall operator add features to its properties, such as
office space, entertainment
and apartment blocks, one of
the people said.
Knorr Alfredo pasta side dish (4.4 oz)
$1.65
$0.94
Betty Crocker Hamburger Helper
(twin-pack)
$3.30
$2.50
Kraft Thick n’ Creamy
Macaroni & Cheese (1 box)
$1.48
$1.28
Colgate 360 Optic White
toothbrushes (2 count)
$5.39
$4.96
Sources: Walmart.com; WSJ reporting
Amber Waves of Grain? Nyet
THE WALL STREET JOURNAL.
Wal-Mart
Lifts Web
Prices to
Aid Stores
A rally that has sent stock
indexes around the world to
records showed signs of stalling this past week, highlight-
BY SARAH NASSAUER
TIMKIV VITALY/TASS/ZUMA PRESS
By Corrie Driebusch,
Sam Goldfarb
and Ben Eisen
ing fears that buoyant markets
could be poised for a pullback.
The Dow Jones Industrial
Average posted its worst week
since September after investors grew nervous about the
chances for a sweeping U.S.
tax overhaul. Adding to the
concern: A drop in the junkbond market, often viewed as
an early warning sign of
broader market stress, capped
by the cancellation of two separate debt sales.
Many money managers
have been watching for
months for signs of cracks in
the market’s steady gains. Instead, major stock indexes
have embarked on a remarkPlease see MARKETS page B2
A recent sampling of product
pricing at Walmart.com (n)
compared with in-store prices (n)
AGAINST THE GRAIN: Large investments and a weaker ruble helped Russia surpass the U.S. as the world’s top wheat exporter. B10
INSIDE
LET THE SALES BEGIN:
SWIFT’S ALBUM SCORES BIG
MARKETING, B5
KEYWORDS | By Christopher Mims
AI Still Needs a Human Touch
If you want
to understand
the limitations
of the algorithms that
control what
we see and hear—and base
many of our decisions upon—
take a look at Facebook Inc.’s
experimental remedy for revenge porn.
To stop an ex from sharing
nude pictures of you, you
have to share nudes with
Facebook itself. Not uncomfortable enough? Facebook
also says a real live human
will have to check them out.
Without that human re-
view, it would be too easy to
exploit Facebook’s antirevenge-porn service to take
down legitimate images. Artificial intelligence, it turns out,
has a hard time telling the
difference between your naked body and a nude by Titian.
The internet giants that
tout their AI bona fides have
tried to make their algorithms
as human-free as possible,
and that’s been a problem. It
has become increasingly apparent over the past year that
building systems without humans “in the loop”—especially in the case of Facebook
and the ads it linked to 470
“inauthentic” Russian-backed
accounts—can lead to disastrous outcomes, as actual human brains figure out how to
exploit them.
Whether it’s winning at
games like Go or keeping
watch for Russian influence
operations, the best AI-powered systems require humans
to play an active role in their
creation, tending and operation. Far from displacing
workers, this combination is
spawning new nonengineer
jobs every day, and the preponderance of evidence sugPlease see MIMS page B4
Wal-Mart Stores Inc. wants
to charge more to buy some
products online than in stores,
part of the company’s efforts
to boost profits and drive
store traffic as it competes
with Amazon.com Inc.
The world’s biggest retailer
has quietly raised prices for
some food and household
items sold on its U.S. website,
including boxes of Kraft Macaroni & Cheese, Colgate toothbrushes and bags of Purina
dog food, according to people
familiar with the matter and
comparisons between online
and in-store prices.
Some big-box retailers
charge more for online purchases, including Costco Wholesale Corp., but the move is unusual for Wal-Mart, which has
long honed an “everyday low
price” message and has worked
to keep online prices at least as
low as shoppers find in its 4,700
U.S. stores.
Wal-Mart previously aimed
to keep online and in-store
prices equal for many of its
most popular products—unless
competition drove them lower.
But the company is experimenting with a new system, which
has at times resulted in higher
web prices for goods that
would otherwise be unprofitable to ship, the people familiar
with the situation said.
In some cases, product listings on walmart.com show an
“online” and “in the store”
price. Often the online price
matches Amazon.
“We always work to offer
the best price online relative
to other sites,” a Wal-Mart
spokeswoman said. “It simply
costs less to sell some items in
Please see PRICE page B2
SPY
LIQUIDITY
RESILIENCY
PERFORMANCE
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 | Monday, November 13, 2017
NY
* ***
INDEX TO BUSINESSES
THE WALL STREET JOURNAL.
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
Baker Hughes.............A2
Big Machine Records..B5
Blue Bottle Coffee......B2
Boeing ......................... B2
Boomtown Accelerator
.....................................B4
Bowie Resource
Partners....................B2
Brookfield Asset
Management.............B1
Brookfield Property
Partners....................B1
Crown Castle
International...........B10
D-E
Dunkin' Brands Group B2
Electronic Arts..........B11
Emirates Airline ......... B2
F-G
Facebook......................B1
FireEye......................A10
Fitbit..........................R10
Fyzical Therapy &
Balance Center.......R10
GE Capital...................A2
GE Healthcare.............A2
General Electric..........A1
Gentle Transitions......R4
GGP..............................B1
Glu Mobile.................B11
Good Buy Gear............B4
H-J
Hangzhou HIK Vision
Digital Technology....A1
Huawei Tech.............A10
J.C. Penney..................B2
C
L-M
Caring Transitions ...... R4
Charles Schwab .......... R3
China Electronics
Technology Group...A10
Christie's...................A11
Comcast.....................B11
Condé Nast..................B5
Lannett......................B11
Let’s Move .................. R4
Liberty Global ........... B11
Macerich....................B10
McDonald's..................B2
Murray Energy............B2
Mylan.........................B11
N-O
NRG Energy.................B2
Orange.......................B11
Orbital ATK.................B3
R-S
Rusagro Group..........B10
SBA Communications
...................................B10
Solaris Commodities B10
Sotheby's..................A11
Starbucks....................B2
Stryker ........................ R6
Sub Zero Ice Cream..R11
T-U-V
Techstars.....................B4
Telefonica..................B11
Time ............................ B5
Trian Fund Management
.....................................A2
Twitter ........................ B4
21st Century Fox........B5
Uber Technologies ...... B3
United Income.............R3
Vanguard Group..........R3
Viacom.........................B5
W-Y-Z
Wal-Mart Stores.........B1
Walt Disney................B5
Wright Medical...........R6
Y Combinator..............B4
Zimmer Biomet .......... R6
Zynga.........................B11
INDEX TO PEOPLE
A-B
Acheson, Leo...............B6
Austin, Rob.................B6
Bensema, Dave...........R1
Bluck, Susan ............... R5
Bornstein, Jeff ........... A2
Brown, Neil.................R1
C-D
Carter, Graydon...........B5
Coughlin, Joseph.........R2
Deems, Daniel...........R10
Drahi, Patrick............B11
F-G
Flannery, John............A1
Fonarow, Gregg...........B6
Golant, Stephen..........R2
Graziano, Chuck........R11
H-I
L-M
Lefkowitz, David.........B2
Lok, Anna S ................ R6
Loomba, Rohit ............ R6
McAdams, Dan............R5
McMillon, Doug...........B2
Meirowitz, Ben...........R4
Miller, Jamie...............A2
N-O-P
Newes, Mike...............R1
Nickelson, Chris........A10
Oakley, Garret.............R3
O'Brien, Fran...............R4
Pavlos, Carlene.........R10
Pennebaker, James W.
.....................................R5
Phelan, Elizabeth......R10
Porter, Andrew ........... R3
Pu Shiliang................A10
Pynoos, Jon...............R10
R-S-T
Racz, Pierre...............A10
Ramsey, Doug.............B2
Ramthun, Roy.............B6
Searfoss, Jason .......... B4
Simpson, Terry............B2
Smyth, Joshua............R5
Sperling, Bert ............. R1
Stokes, Kathy ............. R4
Stokes, Russell...........A2
Swift, Taylor...............B5
Tapper, Elliot...............R6
U-W-Z
Umar, Tarik ............... B11
West, Rob.................R11
Whitbourne, Susan
Krauss.......................R5
Wortman, Paul............R5
Zheng Yibo................A10
XINHUA/ZUMA PRESS
Hale, Danielle ............. R2
Horwitz, Leora............B6
Hu Yangzhong...........A10
Immelt, Jeff................A2
Irving, Paul..................R1
A Boeing 787-10 Dreamliner on display in mid-June near Paris.
Emirates Air, Boeing
In $15.1 Billion Deal
BY ROBERT WALL
AND NICOLAS PARASIE
DUBAI—Emirates Airline
renewed its aircraft-buying
spree, committing to purchase $15.1 billion worth of
Boeing Co. 787 Dreamliners.
Boeing bested Airbus in
the competition to sell Emirates Airline, the world’s largest carrier by international
traffic, new twin-engine longhaul planes.
Emirates will buy 40 of
Boeing’s new 787-10, the largest model in the family of
Dreamliner composite airliners, with deliveries planned
to start in 2022.
The deal, announced Sunday by Emirates Airline on
home turf at the Dubai Air
Show, is a painful loss for
Airbus, which once had sold
the carrier 70 of its rival
A350 before the carrier canceled the deal three years ago
after the European plane
maker redesigned the plane.
Emirates Airline Chairman
Sheikh Ahmed bin Saeed Al
Maktoum said the 787 was
“the better option” for the
airline.
Sheikh Ahmed earlier this
month signaled he was also in
talks with Airbus about placing another order for A380
superjumbos. Airbus officials
PRICE
Continued from the prior page
stores. Customers can access
those store prices online when
they choose to pick up the
item in store.”
On Friday, a box of Kraft
Thick n’ Creamy Macaroni &
Cheese Dinner was $1.48 on
walmart.com, the same as Amazon’s price but more than WalMart’s $1.28 store price (listed
online). A similar comparison
for a twin-pack of Betty Crocker
Hamburger Helper showed the
price as $3.30 online, but $2.50
if purchased at a Wal-Mart
store in Illinois.
The higher online prices are
part of Wal-Mart’s efforts to
nudge more customers into
were waiting in the hallways
at the air show for their own
deal announcement, only to
be snubbed.
An Airbus spokesman said
the carrier wouldn’t comment
on the status of talks with
customers.
The Boeing deal is a bet by
Emirates Airline that its business model of shuttling passengers between North America and Europe to Asia via
Dubai will persist.
It comes as Emirates is
grappling with changes in its
core market. Three years of
relatively low oil prices have
weighed on business-class demand.
Bookings this year also
were hit by U.S. travel bans
against passengers from some
Middle East countries, which
were set aside by U.S. courts,
and after American authorities temporarily imposed restrictions on the use of laptops and similar electronic
devices on U.S.-bound flights
over terrorism concerns.
The airline last week reported half-year net profit
more than doubled amid
signs travel demand was recovering and was bolstered
by favorable exchange rates.
The carrier warned, though,
that margins remain under
pressure.
stores as well as raise its ecommerce margins by offsetting the cost to ship orders to
homes.
A $1.28 box of Kraft Macaroni & Cheese could cost a big
retailer around $10 to ship
from Chicago to Atlanta, depending on how remote the
buyer’s address is, according to
a cost analysis by consultants
Spend Management Experts. A
smaller retailer would likely
pay about double. A twin pack
of Hamburger Helper could cost
around $10 to ship between
Minneapolis and Atlanta, estimates the firm.
Wal-Mart is investing billions to boost e-commerce
sales, which rose 60% in the
U.S. in the most recent quarter, but some shareholders
worry the effort could drag on
Coffee Makers Go Ready to Drink
Industry rolls out
bottled or canned
frappés, iced mochas
and cold brews
BY JULIE JARGON
The hottest thing in coffee
now is the supermarket cold
case.
Every major coffee maker
from McDonald’s Corp. to
Blue Bottle Coffee Co. is piling onto the refrigerated
shelves of grocery stores with
bottled or canned frappés, iced
mochas and cold brew, a drink
made from steeping coffee
grinds in cool water for several hours.
U.S. retail sales of refrigerated ready-to-drink coffee rose
29% in the 52 weeks ended
Sept. 10 to more than $289
million, according to market
researcher IRI. The broader
category of ready-to-drink coffee, which also includes beverages sold at room temperature
but intended to be chilled after
opening, is valued at nearly
$2.7 billion, according to estimates from Mintel, which predicts sales will reach more
than $4.4 billion in the next
five years.
Ready-to-drink coffee in
both cold and shelf-stable form
is a bright spot in an industry
that is facing slowing growth,
and coffee-company executives
see improving their market
share in supermarkets and
convenience stores as crucial.
Several factors are working
in favor of the cold stuff.
Younger consumers say
they view cold coffee as a
healthier alternative to energy
drinks and soda. It is often
cheaper than a cup of specialty
coffee at a coffee shop. And
people are increasingly consuming on-the-go and have
less patience to wait, as evidenced by the rise of e-commerce and mobile order apps.
Kris Hardaway, a 24-yearold receptionist in Little Rock,
Ark., keeps a 32-ounce bottle
ALLISON SCOTT/THE WALL STREET JOURNAL
A
Activision Blizzard....B11
Advance Publications.B5
Airbus..........................B2
Alibaba Group.............B4
Alphabet......................B4
Altice.........................B11
Amazon.com ............... B1
American Tower REIT
...................................B10
Apple...........................B5
AT&T..........................B11
Younger consumers say they view cold coffee as a healthier alternative to energy drinks and soda.
Cold coffee is the beverage
of choice among 18- to 35year-olds, the demographic
group driving coffee consumption in the U.S., according to
industry analysts. Mintel found
that 53% of millennials surveyed last month said they
drank iced coffee in the last
three months, up from 46% a
year ago.
Nigel Travis, chief executive
of Dunkin Brands Group Inc.,
said he is happy to be making
inroads in a category that he
said Starbucks has long dominated with its bottled Frappuccino drinks. Getting its bottled
coffee in cities where Dunkin
doesn’t yet operate coffee
shops allows it to introduce
new consumers to the brand,
he said, adding that the chain’s
bottled cold coffee has exceeded $100 million in retail
sales since being rolled out in
supermarkets and convenience
stores early this year.
Starbucks said it plans next
year to roll out new bottled
Frappuccinos and coffee-andfruit smoothies made with almond milk and bottled single-
serve cold brew.
Making and distributing
bottled coffee to grocery
stores is a much more costly
proposition than grinding
beans and brewing coffee in a
coffee shop, however.
Dave Burwick, chief executive of Peet’s Coffee, said coldbrewed coffee is particularly
challenging and expensive to
produce because it requires
twice the amount of coffee
than regular iced coffee to extract flavor.
There are also multiple
companies involved in the supply chain, each taking a cut of
the profits, from the co-packers that make the concentrate
to the bottling companies that
package it to the refrigerated
trucks that ship the cans or
bottles to stores. Peet’s, however, operates its own directto-store chilled delivery network. Despite the cost, major
coffee retailers say they need
to capture sales wherever coffee drinkers are and offer
more cold alternatives for
younger consumers who eschew hot coffee.
THE WALL STREET JOURNAL.
fort. NRG offered a 5.75% yield
for new bonds due 2028, but
that was at least a quarterpercentage point too low for
investors, according to people
familiar with the deal.
Spokesmen for Bowie and
NRG didn’t immediately return
requests for comment.
Meanwhile, stocks declined
after the Senate bill contrasted with the House version
in key areas, including in its
plan to delay the corporate
tax-rate cut until 2019.
Smaller companies fell
more than their large-company counterparts, with the
small-cap benchmark Russell
2000 down 1.3% in the past
week compared with the
Dow’s 0.5% weekly decline. Investors view smaller companies as bigger beneficiaries of
a tax overhaul than their
large-company counterparts
because small firms tend to
pay a higher median effective
tax rate.
Other victims of the downturn: Shares of this year’s
best-performing companies, as
some investors took the opportunity to secure profits.
Technology companies in the
S&P 500 fell 0.9% over the last
two days of the week but remain up 37% in 2017.
Still, investors stopped
short of predicting a prolonged selloff.
“We’re looking past this
two-day turmoil in the market,” said Terry Simpson, multiasset investment strategist
for BlackRock’s global investment strategy team, noting
that corporate earnings remain strong and economies
around the world are grow-
ing. “At the end of the day, we
are still in a sustained economic expansion that could
continue into next year.”
The stock market owes its
previous two months of
weekly gains in large part to
strong quarterly results from
companies across all sectors,
according to traders.
Investors haven’t entirely
curtailed their risk taking. In a
sign that it doesn’t take much
to lift stocks, shares of battered retail companies rallied
Friday, even as the broader
market declined. J.C. Penney
Co. gained 15% after betterthan-expected earnings for the
July to September period. The
SPDR S&P Retail exchangetraded fund rose 1.6%
Similarly, despite the pullback in the junk-bond market,
many investors believe it is
still in generally good condition. Recent selling has come
after the extra yield to hold
junk bonds relative to ultrasafe
Treasury bonds was on the
verge of reaching its lowest
level since the financial crisis.
At least five companies with
low credit ratings successfully
sold bonds on Thursday and
Friday, with borrowing totaling around $2 billion, according to LCD, a unit of S&P
Global Market Intelligence.
As of Thursday, the average
junk-bond yield was 5.74%, up
from 5.31% on Oct. 24, according to Bloomberg Barclays data.
Yields rise when prices fall.
“The cracks are still so few
and far between that the bull
deserves the benefit of the
doubt,” said Doug Ramsey,
chief investment officer of
Leuthold Group in Minneapolis.
proving existing stores and investing in e-commerce. In
2015 it closed more than 150
U.S. stores, and it plans to
build just two dozen stores
next fiscal year.
Without new stores, WalMart executives say they will
boost sales by bringing more
shoppers to existing locations
and driving online sales. WalMart has raised starting wages
for store employees, refurbished stores and bought
smaller online retailer startups.
So far, the bet is working.
Wal-Mart has increased sales
in existing stores for 12 consecutive quarters, boosted by
more shoppers coming to
stores at a time when many
traditional retailers face sluggish sales. Its stock closed at a
high Friday at $90.92.
But Amazon continues to
grab market share. Amazon is
expected to earn 43.5% of U.S.
online sales this year, up from
38.1% last year, according to
eMarketer, a research firm. WalMart will grow to 3.6%, from
2.8% last year, said the firm.
Wal-Mart
e-commerce
workers responsible for product sales have been instructed
to boost profits along with
sales, according to the people
familiar with the situation,
and are “no longer obligated
to follow store pricing,” one of
them said.
The company is also asking
suppliers to sell more of their
merchandise in bulk versions—instead
of
single
boxes—to increase order sizes
and make them more profitable, the people said.
of cold brew concentrate that
she buys from Whole Foods for
$10.99 in her refrigerator and
pours herself a cup every
morning to drink during her
drive to work. She said one
bottle lasts her about a week
and a half.
“It’s easier than waiting for
my coffee maker to start,” she
said, and faster than waiting in
line at a coffee shop.
MARKETS
ment. Despite the calm climb
higher, Mr. Lefkowitz said in
recent months he has been
consistently asked about
whether markets are due for a
pullback.
On Friday, coal company
Bowie Resource Partners LLC
pulled a $375 million bond offering that would have helped
fund its takeover by a group of
investors led by Murray Energy Corp. and the formation
of a partnership, leaving financing for the deal uncertain.
A spokesperson for Murray
Energy confirmed the bond
was pulled but didn’t provide
further comment.
Bowie had raised the proposed yield on the notes to
around 11%, but potential buyers were wary about investing
in a debt-laden company in a
challenged sector, investors
said.
On Thursday, merchant
power company NRG Energy
Inc. canceled a refinancing ef-
Continued from the prior page
able rally. The Dow industrials
have climbed 19% in 2017,
notching 59 records in the
process, the most in a calendar year since 1995.
Along the way, investors
overcame rising tensions between the U.S. and North Korea, legislative setbacks in
Washington, D.C., disruptive
hurricanes and the indictment
of a presidential campaign official. Instead, they have focused on higher corporate
earnings, a steadily expanding
U.S. economy and hopes for a
cut in the corporate tax rate.
“The reason volatility has
been so low this year is that
economic data around the
world has been so strong,”
said David Lefkowitz, senior
equity strategist of the Americas at UBS Wealth Manage-
Signs of Jitters
U.S. stocks and junk bonds declined in the past week, reflecting
investors' concern about markets that have been up this year.
20%
Dow Jones Industrial Average
15
iShares iBoxx $ High
Yield Corporate Bond ETF
10
5
0
J
F
M
A
M
Source: FactSet
profits.
Marc Lore, head of WalMart’s U.S. e-commerce unit,
told investors in October that
“this year should be the largest loss in e-commerce, and
we’ll see slight improvement
next year.”
Overall, Wal-Mart expects
profit margins to be slightly
down this year. Wal-Mart’s net
income has declined the past
two fiscal years, down 7.2% to
$13.6 billion in the last fiscal
year ended Jan. 31, 2017. The
company is scheduled to report third-quarter earnings on
Thursday.
Since Wal-Mart’s current
chief executive, Doug McMillon, took the job in 2014, the
retailer shifted its growth
strategy from building more
cavernous supercenters to im-
J
J
A
S
O
N
MILITARY POLICE OF THE STATE
OF SÃO PAULO - BRAZIL
CENTER FOR SUPPLY AND
MAINTENANCE OF ARMAMENT
AND AMMUNITION - (CSM/AM)
THE CSM/AM FROM MILITARY POLICE
OF STATE OF SÃO PAULO, BRAZIL,
ANNOUNCES
AN
INTERNATIONAL
COMPETITIVE BIDDING FOR ACQUISITION
OF FIREARMS, TO BE USED BY
SPECIAL FORCES OF MILITARY POLICE
OF THE STATE, ACCORDING THE
FOLLOWING ORDER: PROCEDURE Nº
CSMAM-2017340003: TENDER OFFER OF:
5.000 (FIVE THOUSAND) SEMI-AUTOMATIC
PISTOLS,
CALIBER
S&W.40,
WITH
ACCESSORIES AND SPARE PARTS KIT.
THE PROCEDURE WILL BE PERFORMED
AT THE HEADQUARTERS OF CSM/AM,
LOCATED AT RUA ALFREDO MAIA, 106
- LUZ - SÃO PAULO CITY - BRAZIL. ZIPE
CODE 01106-010. OPENING: DECEMBER
15TH, 2017. AT 9:30 AM (LOCAL TIME).
THIS PROPOSAL IS FORMALLY KNOWN
AS PRESENTIAL TRADING SESSION IN
INTERNATIONAL SCOPE. THE WINNER
WILL BE CHOSEN BASED ON THE LOWEST
PRICE.THE INTERESTED PROPOSER MAY
TAKE NOTICE AND OBTAIN DOCUMENTS
CONCERNING BY MEANS, UNTIL 48
HOURS BEFORE OPENING OF THE
PROCEDURE THROUGH THE WEBSITE
csmam@policiamilitar.sp.gov.br.
ANY
QUESTIONS OR INQUIRIES SHOULD BE
TAKEN OFF BY E-MAIL OR CALL PHONE
TO +55-11-3228-6055/3228-6449.
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.
Monday, November 13, 2017 | B3
* *
BUSINESS NEWS
BY ANDY PASZTOR
Orbital ATK Inc. launched a
civilian cargo capsule into orbit
Sunday, marking the second successful flight of the redesigned
Antares rocket and raising the
company’s hopes of developing a more powerful booster
for Defense Department missions in the next decade.
During the flawless liftoff
from coastal Virginia at 7:20 a.m.
local time, both rocket stages
functioned as intended, propelling a Cygnus spacecraft into a
planned trajectory to reach the
international space station. The
Cygnus, an automated cargo
spacecraft, was crammed with
nearly four tons of food, experiments and supplies, including
cameras, computer hardware
and more than a dozen small
experimental satellites.
The launch continued the
company’s rebound from a catastrophic 2014 rocket explosion at the start of a mission
for the National Aeronautics
and Space Administration. Investigators said the explosion—which destroyed a cargo
capsule it was carrying and all
its contents—was caused by a
malfunctioning, 1970s-era Russian-built engine.
An Antares rocket with the
same revamped propulsion
system as Sunday’s craft delivered an unmanned capsule to
the orbiting international laboratory last year as part of a
NASA contract.
Sunday morning’s launch
also is likely to increase momentum for Orbital ATK’s efforts to eventually compete
with a trio of other companies
vying for Pentagon approval to
transport future national-security satellites into high-alti-
tude orbits.
Commercial space-transportation companies Space
Exploration
Technologies
Corp., led by billionaire Elon
Musk, and Blue Origin LLC,
founded by Amazon.com Inc.
Chairman Jeff Bezos, also are
looking to snare such future
Pentagon business. So is
United Launch Alliance, a
rocket-making joint venture
between Boeing Co. and Lockheed Martin Corp., which currently is the primary heavylift launch provider for the
U.S. military.
Next year, Air Force procurement officials are expected to pick three contractor
teams
to
provide
prototype rockets intended to
meet military needs through
the next decades.
A well-functioning Antares
could help buttress Virginia-
BILL INGALLS/AGENCE FRANCE-PRESSE/GETTY IMAGES
Successful Launch
For Antares Rocket
Orbital ATK’s redesigned Antares rocket, with a civilian cargo capsule, at Sunday’s liftoff in Virginia.
based Orbital ATK’s argument
for its next-generation launch
system and potentially persuade Pentagon brass on the
company’s resilience and expertise. Just four days before
the latest launch, the company
announced it cleared an important milestone testing the
structural strength of the
composite case for future solid
rocket motors.
Sunday’s mission also
comes as Northrop Grumman
Corp. seeks to complete its
proposed acquisition of Orbital ATK in a transaction valued at more than $9 billion.
Uber Fare Adjustments Found to Have No Effect on Drivers’ Pay
BY GREG BENSINGER
Hours before Uber Technologies Inc.’s chief executive
resigned in June, the ride-hailing company announced a sixmonth goodwill effort to ease
its strained relationship with
drivers, who have long sought
better work conditions and
higher pay.
Since then, Uber has unleashed a host of goodies, including extra payments for
lengthy wait times, routing improvements and in-app tipping.
The incentives are vital to
keeping its contract drivers
happy, especially as executives
have come to an inconvenient
realization: Uber effectively
has no way to raise drivers’
hourly wages.
The dilemma is laid bare in a
recent study by Uber, conducted in cooperation with a
New York University assistant
professor, that found that no
matter which direction fares
go, drivers inevitably take
home about the same earnings
over time. That is because of
how easy it is for drivers and
riders to jump on and off the
The ride-hailing firm
must rely on pricey
incentive payments to
bring earnings up.
system, according to the study.
When there is a fare cut,
drivers’ pay per trip falls but
riders flood the service, offering more business. A price rise
eventually lures more drivers
than Uber needs and scares
away riders. The changes are
short-lived as an equilibrium is
reached after about eight
weeks, and drivers’ average
pay comes out the same.
“The overwhelming story is
that it doesn’t seem to matter
what Uber does with fares”
when it comes to driver earnings, said John Horton, an NYU
assistant professor of information, operations and management sciences, and a co-author
of the study, called “Labor
Market Equilibration: Evidence
from Uber.” His co-authors are
two Uber executives, Jonathan
Hall, the company’s chief economist, and Daniel Knoepfle, a
senior economist.
All of this means Uber, and
other ride-sharing services,
must lean heavily on pricey incentive payments—cash for
completing a certain number
of rides a week, say—to bring
driver earnings above what
typically amounts to around
minimum wage.
Those payments are one of
the chief reasons Uber has
been a money-losing operation—along with expenses like
opening new markets and
building out projects like prepared-food delivery—recording
over $4 billion in losses over
the past six quarters through
the first half of this year. The
predicament may make it difficult for Uber’s new CEO, Dara
Khosrowshahi, to tame those
losses before it goes public as
expected, as soon as 2019.
A pathway for Uber to receive a multibillion-dollar investment led by SoftBank Group
Ltd., and a powerful new ally in
the Japanese investor, was
cleared Sunday after former
CEO Travis Kalanick and a major
investor,
Benchmark,
reached agreement over control
of board seats, according to
people familiar with the matter.
Uber has long had a conten-
tious relationship with drivers,
some of whom have bemoaned
the lack of benefits and contend that they should be
treated as employees. On Friday, a British court ruled San
Francisco-based Uber must
grant its drivers employee
rights that could significantly
boost labor costs there.
As contractors, drivers pay
for expenses like fuel, vehicle
insurance and maintenance, and
some say they feel powerless to
combat sudden fare changes or
Uber’s rules on driving.
Uber does have the power
to lower fixed fees and the
25% commission it charges
most drivers to put more
money in drivers’ pockets, said
Ryan Price, executive director
of the Independent Drivers
Guild, which represents some
drivers in New York.
Using Uber trip data from
43 of the largest U.S. cities
WHEN THE
BELL RINGS,
COME OUT
SWINGING.
E*TRADE was created so you could do just that. We always believed
in the democratization of investing. That’s why we made trading
technology available to everyone. And we haven’t let up—The Original
Place To Invest Online is all about giving you the access, tools, and
support you need to make Wall Street your street. That bell?
That bell is an invitation. Ding. Ding. Ding.
Securities products and services are offered by EÚTRADE Securities LLC, member FINRA/SIPC.
© 2017 EÚTRADE Financial Corporation. All rights reserved.
from June 2014 to January
2017, the researchers analyzed
the base fare, or the rates tied
to distance and time. They assessed the effects of the fare
changes for its main UberX service between cities, and then
within cities compared UberX
with the UberBlack luxury service, for which fares have generally remained steady.
The results of the study
stand in contrast to Uber’s
longstanding argument to drivers that price cuts ultimately
lead to more driver earnings.
Uber’s chief economist, Mr.
Hall, said Uber generally
pushes for lower fares because
it means more riders can use
the service, but he said the
study’s conclusions mean Uber
has freedom to adjust fares in
either direction to achieve certain ridership benchmarks,
without fear of broadly damaging drivers’ earnings.
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
B4 | Monday, November 13, 2017
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Build a Business—and Learn the Finances
Incubators now teach
young entrepreneurs
about the numbers
behind their startups
When Kristen Langenfeld
and her co-founder began a
white glove service for selling
preowned children’s gear, they
used Excel spreadsheets and
QuickBooks to keep track of
sales and expenses.
After a few weeks at the
Boomtown Accelerator program in Boulder,
CFO
Colo., the Good
JOURNAL Buy Gear Inc.
team
realized
they had more
work to do.
“We had to figure out the
drivers of our business,” said
Ms. Langenfeld. The company
wasn’t tying selling, general
and administrative expenses
to revenue-related milestones,
she said.
Incubator programs designed
to help young entrepreneurs get
their products and services off
the ground are popular proving
grounds for startups. Techstars
and Y Combinator have had
thousands of entrepreneurs
flow through their accelerator
and mentoring programs over
the years, with most of the
work focused on the technology
behind the product.
Y Combinator has invested in
more than 1,400 companies
since 2005, including Airbnb
Inc. and Instacart Inc. Techstars
has mentored over 1,000 com-
MATT NAGER FOR THE WALL STREET JOURNAL
BY KIMBERLY S. JOHNSON
Jason Searfoss, second from right, finance chief of Boomtown Accelerator, which offers a program on financial and legal issues.
panies including Contently Inc.,
which connects writers with
paid marketing assignments.
Now, a new generation of
programs is placing more emphasis on the financial aspects
of launching a successful business.
Nearly 80 teams have completed Boomtown’s 12-week
program since it was founded in
2014. In addition to technical
resources, the curriculum provides legal and financial training. By the third week, compa-
nies are developing their
business models, estimating
granular-level expenses and figuring out “the underlying assumptions that drive those expenses,” said Jason Searfoss,
finance chief for Boomtown Accelerator.
“We found that our teams
were starving for this kind of
curriculum, one that’s focused
on finance and legal pitfalls to
avoid,” said Mr. Searfoss, who
also leads the finance and fundraising curricula for startups
that join the program.
The first time Bitsbox cofounder Aidan Chopra had to
create a forward-looking income statement, he “didn’t
know where to get those numbers from.” The company, which
teaches children how to code
apps through colorful printed
kits delivered each month, had
a “crappy, little piece of paper”
describing the business when it
went through the Boomtown
program in 2014.
Techstars, by contrast, pro-
vides no formal finance program, as the incubator works to
bring in mentors of “the highest
quality,” said Nicole Glaros,
chief innovation officer at Techstars. Instead, it touts the
strength of its mentoring program and the one-on-one attention its teams receive.
Y Combinator also expects
founders in its program to have
a “basic understanding of numbers,” said CFO Kirsty Nathoo.
The mentorship is specific to
each group, which receives ad-
vice on a case-by-case basis.
“We make sure that founders
understand that if they raise
money, it’s not their money.
They’re being trusted to create
a business,” Ms. Nathoo said.
After its Boomtown experience earlier this year, Good
Buy Gear wanted to raise about
$300,000 in convertible notes.
It ended up with $325,000
from two angel investors and
Relay Ventures, a Silicon Valley
venture-capital firm.
“We didn’t know any of this
language before starting here,”
Ms. Langenfield said.
Boomtown companies have
raised more than $50 million
but are generating annual revenue in excess of that amount,
said executive director and cofounder Toby Krout. “We work
to focus on the entrepreneur
and the core business and to
raise only the amount of capital
actually needed to support the
business and no more,” he said.
While investors often have
the upper hand on tech-oriented startups when it comes to
finances, most still want to see
that young companies are informed.
“Most entrepreneurs don’t
see finance as a core function,”
said Robert Okabe, a former
CFO and angel investor who is
now leading commercialization
efforts at Polsky Center for Entrepreneurship and Innovation
at the University of Chicago.
“It’s good for me as an investor to have a reasonably informed entrepreneur on the
other end of the table,” he said.
—Rheaa Rao contributed
to this article.
BY LIZA LIN
SHANGHAI—To see China’s
consumer clout in action, look
no further than Alibaba Group
Holding Ltd.’s Singles Day.
The e-commerce giant said
it racked up more than $25.3
billion in sales in the 24 hourperiod that began at 12 a.m.
Saturday—helped along by a
gala TV show, a marketing
campaign that pushed advance
orders, and the usual discounts on everything from
cosmetics to cars. Last year,
the company logged sales of
$17.8 billion. That number was
exceeded by 1 p.m. this year.
Smartphones and appliances were among the topselling items. Among the most
expensive: An Aston Martin
racing yacht purchased for 17
million yuan ($2.56 million).
Zhang Yi Fan, a 21-year-old
college student in Shanghai,
said she stayed up late to snag
deals as soon as the sales began in the wee hours of Saturday morning.
“I refrained from buying
anything over the last month
in anticipation of this,” said
Ms. Zhang, who said she
bought 3,000 yuan ($451)
worth of clothing, snacks and
shampoo online.
This year’s variety telecast
plugging the sales event featured celebrities including Nicole Kidman and Pharrell Williams, and the catchphrase “buybuy-buy.” Two Victoria Secret
models led the gala’s hosts in a
fitness routine to promote the
brand’s latest athletic apparel.
Entertainment is key to
reaching China’s younger consumers, who are passionate
online buyers coveted by retailers for their impulsive
shopping habits and their discretionary spending power,
said Kitty Fok, China’s managing director for research firm
International Data Corp.
“Many of them are from
single-child families, who
don’t have to fight with other
siblings for pocket money,”
Ms. Fok said.
Deals are at the heart of the
holiday. Big-screen Sharp TVs
that list for $1,500 could be had
for about $520. A $1,000 treadmill was offered for $500. For
those with more modest bud-
gets, an $8 jar of pecans came
with a second jar for free.
Alibaba also uses Singles Day
to roll out new ideas. In a mall
near Shanghai’s Bund district,
women could try out lipstick
colors from Japanese cosmetics
brand Shiseido using a virtual
mirror in the store. The mirror
made it appear as though they
were wearing lipsticks in various colors.
Not every innovation is an
instant hit, however. At the
store, there was a long line to
claim a free skin-care sample,
but few takers to try the mirror.
Singles Day—it falls on Nov.
11, or 11/11—was started as a
day to celebrate unattachment. Alibaba turned it into an
online shopping festival in
2009, setting new sales records each year.
Some consumers say they
have gotten weary of the barrage of advertisements and
complicated promotions that
come with the event.
But all the marketing muscle—including a heavy push
for consumers to preorder
items ahead of the sale—did
the trick once again.
Legal Notice
If You Owned a U.S. Dollar LIBOR-Based
Instrument Between August 2007 and May 2010
You May Be Eligible for a Payment from
a $130 Million Settlement
There is a Settlement with Citibank that impacts
individuals and institutions that entered into overthe-counter financial derivative and non-derivative
instruments directly with Citibank, Barclays, or a
Non-Settling Defendant that received payments
tied to U.S. Dollar LIBOR. Citibank, Barclays,
and the Non-Settling Defendants (Credit Suisse,
Bank of America, JPMorgan, HSBC, Lloyds,
WestLB, UBS, RBS, Deutsche Bank, Rabobank,
Norinchukin, Bank of Tokyo-Mitsubishi UFJ,
HBOS, SocGen, and RBC) are U.S. Dollar LIBOR
Panel Banks. The instruments include certain
interest rate swaps, forward rate agreements,
asset swaps, collateralized debt obligations, credit
default swaps, inflation swaps, total return swaps,
options, and floating rate notes.
The litigation claims that the banks manipulated
the U.S. Dollar LIBOR rate during the financial
crisis, artificially lowering the rate for their own
profit, which resulted in purchasers receiving less
interest payments for their U.S. Dollar LIBORbased instruments from the banks as they should
have. Plaintiffs assert antitrust, breach of contract,
and unjust enrichment claims. Citibank denies all
claims of wrongdoing.
Am I included?
You are included in the Settlement if you
(individual or entity): Directly purchased
certain U.S. Dollar LIBOR-based instruments
from Citibank, Barclays, or any Non-Settling
Defendant (or their subsidiaries or affiliates) in
the United States; and owned the instruments at
any time between August 2007 and May 2010.
What does the Settlement provide?
The Settlement will create a $130 million Settlement
Fund that will be used to pay eligible Class Members
who submit valid claims. Additionally, Citibank
will cooperate with the Plaintiffs in their ongoing
litigation against the Non-Settling Defendants.
How can I get a payment?
You must submit a Proof of Claim to get a payment.
You can submit a Proof of Claim online or by mail.
The deadline to submit a Proof of Claim is March
29, 2018. You are entitled to receive a payment if
you have a qualifying transaction with Citibank,
Barclays or a Non-Settling Defendant. At this
time, it is unknown how much each Class Member
who submits a valid claim will receive.
What are my rights?
Even if you do nothing, you will lose your right
to sue Citibank for the alleged conduct and will
be bound by the Court’s decisions concerning the
Settlement. This Settlement will not result in a
release of your claims against any Non-Settling
Defendant, and the litigation against Non-Settling
Defendants is ongoing. If you want to keep your
right to sue Citibank, you must exclude yourself
from the Settlement Class by January 2, 2018. If
you stay in the Settlement Class, you may object to
the Settlement by January 2, 2018.
The Court will hold a hearing on January 23, 2018
to consider whether to approve the Settlement and
approve Class Counsel’s request of attorneys’
fees of up to one-third of the Settlement Fund,
plus reimbursement of costs and expenses. You
or your own lawyer may appear and speak at the
hearing at your own expense.
1-888-568-7640 www.USDollarLiborSettlement.com
DAI SUGANO/SAN JOSE MERCURY NEWS/TNS/ZUMA PRESS
Singles Day Is Hit for Alibaba
Amazon’s Mechanical Turk system outsources individual computer microtasks to a global workforce.
MIMS
Continued from page B1
gests the boom will continue
for the foreseeable future.
Facebook, of course, is now
a prime example of this trend.
The company recently announced it would add 10,000
content moderators to the
10,000 it already employs—a
hiring surge that will affect
its future profitability, said
Chief Executive Mark Zuckerberg.
nd Facebook is hardly
alone. Alphabet Inc.’s
Google has long employed humans alongside AI
to eliminate ads that violate
its terms of service, ferret out
fake news and take down extremist YouTube videos.
Google doesn’t disclose how
many people are looped into
its content moderation,
search optimization and other
algorithms, but a company
spokeswoman says the figure
is in the thousands—and
growing.
Twitter has its own teams
to moderate content, though
the company is largely silent
about how it accomplishes
this, other than touting its
system’s ability to automatically delete 95% of terrorists’
accounts.
Almost every big company
using AI to automate processes has a need for humans
as a part of that AI, says Panos Ipeirotis, a professor at
New York University’s Stern
School of Business. America’s
five largest financial institutions employ teams of nonengineers as part of their AI
systems, says Dr. Ipeirotis,
who consults with banks.
AI’s constant hunger for
human brains is based on our
increasing demand for services. The more we ask for,
the less likely a computer algorithm can go it alone—
while the combination can be
more effective and efficient.
For example, bank workers
who previously read every
email in search of fraud now
make better use of their time
investigating emails the AI
flags as suspicious, says Dr.
A
Ipeirotis.
A machine-learning-based
AI system is a piece of software that learns, almost like a
primitive insect. That means
that it can’t be programmed—
it must be taught.
To teach them, humans
feed these systems examples,
and they need truckloads. To
build an AI filter to identify
extremist content on YouTube, humans at Google manually reviewed over a million
videos to flag qualifying examples, says a Google spokeswoman.
An algorithm can only be
as good as “the quantity and
quality of the training data to
get [it] going,” says Robin
Bordoli, CEO of CrowdFlower
Inc., which provides human
labor to companies that need
people to train and maintain
AI algorithms, from auto makers to internet giants to financial institutions.
Even when an AI has been
trained, its judgment is never
perfect. Human oversight is
still needed, especially with
material in which context
matters, such as those extremist YouTube posts. While
AI can take down 83% before
a single human flags them,
says Google, the remaining
17% needs humans. But this
serves as further training:
This data can then be fed
back into the algorithm to improve it.
elying on AI can lead to
false positives, as when
the company pulls
down legitimate content that
its algorithms think might be
offensive.
There are many cases
when AI can barely perform a
task at all, as in the case of
Facebook’s nude pic filter.
Transcribing receipts and
business cards, tagging videos
and moderating adult content
are all tasks that “should be
easy for machine learning,
but in practice are too unstructured,” says Vili Lehdonvirta, a senior research fellow
at the Oxford Internet Institute in the U.K.
Dr. Lehdonvirta maintains
the Online Labor Index, a
real-time estimate of the
number of people employed
R
for these sorts of tasks. By his
calculations, the number of
tasks posted to crowdsourced
online labor platforms, which
includes this kind of work, is
up 40% in the past year alone.
Systems at risk of being
gamed by swindlers also require constant human attention, says Dr. Ipeirotis. AIs,
once trained, are inexhaustible, but this is a curse as
much as a blessing: People
who outsmart the algorithm
can multiply their results a
millionfold.
Humans, on the other
hand, are slower than AI, but
can identify patterns based
on very little information.
Any time a system must deal
with bad actors—like when an
entity posing as an American
on Twitter is actually a Russian agent—there is no replacement for live staffers.
Some of this labor happens
through outsourced systems
like CrowdFlower and Mechanical Turk, Amazon.com
Inc.’s system for outsourcing
individual computer microtasks to a global workforce of
more than 500,000 people.
Across the globe, between
10,000 and 20,000 people a
week pick up online piecework, flagging porn in online
forums, teaching self-driving
systems to identify pedestrians and training facial-recognition algorithms, Dr. Lehdonvirta estimates. When you
include companies’ own internal teams, there are probably
hundreds of thousands of humans, world-wide, whose
work is sold as AI, he says.
r. Lehdonvirta’s estimates don’t include
the world’s biggest human-AI workforce: China’s
censors. Estimates for the
Chinese government’s operation alone range from 100,000
to one million. In addition, every Chinese internet company
that distributes or hosts content must have its own censors, typically one per
100,000 users.
Facebook isn’t in China.
One China internet executive
told The Wall Street Journal
that if it were, it would need
20,000 content moderators—
for video alone.
D
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.
MEDIA
First-Day Sales Hot
For Swift’s Album
BY ANNE STEELE
Taylor Swift’s newest album
sold more than 717,000 copies
in the U.S. in its first day of
release, according to Buzzangle Music, putting the pop star
on pace to potentially beat out
week-one sales for her previous blockbuster.
Ms. Swift on Friday released “Reputation,” her
sixth studio effort, for sale
only; it wasn’t made available on streaming services,
such as Spotify AB or Apple
Inc.’s Apple Music. The album may be held from
streaming for a week or longer, according to people familiar with the matter.
The move appears to have
worked, leading to strong
sales, and setting her up for
what could be her biggest
first-week sales.
Ms. Swift’s day-one log for
“Reputation” is shy of the record—Adele’s “25” made its
debut with 1.5 million copies
sold on its first day in 2015.
But it could nonetheless set
up Ms. Swift to top her previ-
ous album, “1989,” which did
1.29 million in its first week in
2014, according to Nielsen
Music.
“The first-day numbers
have ‘Reputation’ poised for
the highest debut since Adele’s
opening week and should rank
amongst the highest firstweek openings of all time,”
said Nielsen Music analyst David Bakula.
If so, “Reputation” would
be Ms. Swift’s fourth consecutive album to sell more than
one million copies in its first
week. She is already the only
artist to have three albums hit
that mark.
Big Machine Records, her
label, declined to comment.
Ms. Swift waited the better
part of a year before allowing
any streaming services to
carry “1989.”
Three years later, however,
streaming has overtaken
download sales and CDs as the
most popular way to listen to
music, and it is unclear
whether it will be feasible to
keep the new album off
streaming services for as long.
Monday, November 13, 2017 | B5
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely pursuant to the Offer to Purchase, dated November 13,
2017, and the related Letter of Transmittal, and any amendments or supplements to such Offer to Purchase or Letter of Transmittal. Purchaser is not aware of any state where the making of the
Offer is prohibited by any administrative or judicial action pursuant to any valid state statute. If Purchaser becomes aware of any valid state statute prohibiting the making of the Offer or the
acceptance of the Shares pursuant thereto, Purchaser will make a good faith effort to comply with that state statute or seek to have such statute declared inapplicable to the Offer. If, after
a good faith effort, Purchaser cannot do so, Purchaser will not make the Offer to, nor will tenders be accepted from or on behalf of, the holders of Shares in that state. Except as set
forth above, the Offer is being made to all holders of Shares. In any jurisdiction where the securities, “ blue sky” or other laws require the Offer to be made by a licensed broker
or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
Notice of Offer to Purchase
All Outstanding Shares of Common Stock and Series A Preferred Stock
of
Planet Payment, Inc.
at
$4.50 Per Share of Common Stock, Net in Cash,
and $13.725 Per Share of Series A Preferred Stock, Net in Cash,
by
Fintrax US Acquisition Subsidiary, Inc.,
an indirect wholly-owned subsidiary of
Franklin UK Bidco Limited
Fintrax US Acquisition Subsidiary, Inc., a Delaware corporation (“Purchaser”) and an indirect wholly-owned subsidiary of Franklin UK Bidco Limited,
a private limited company incorporated under the laws of England and Wales (“Parent”), is offering to purchase all outstanding shares of (i) common stock,
par value $0.01 per share (“Company Common Stock”), of Planet Payment, Inc., a Delaware corporation (the “Company”), at a price per share of $4.50 (such
price as it may be amended from time to time in accordance with the Merger Agreement, the “Common Stock Offer Price”), net to the seller in cash, without
any interest, but subject to any required withholding of taxes, and (ii) Series A Preferred Stock, par value $0.01 per share (“Company Series A Preferred
Stock” and together with the Company Common Stock, the “Shares”) of the Company, at a price per share of $13.725, equal to the Common Stock Offer
Price multiplied by the conversion ratio set forth in the Company’s Restated Certificate of Incorporation rounded to the nearest one-hundredth, which is
3.05 (such price as it may be amended from time to time in accordance with the Merger Agreement, the “Preferred Stock Offer Price”), net to the seller in
cash, without any interest, but subject to any required withholding of taxes, in each case upon the terms and subject to the conditions set forth in this Offer
to Purchase (together with any amendments or supplements hereto, the “Offer to Purchase”) and in the related Letter of Transmittal (together with any
amendments or supplements thereto, the “Letter of Transmittal ” and, together with the Offer to Purchase, the “Offer”). If your Shares are registered in your
name and you tender directly to Computershare Trust Company, N.A. (the “Depositary”), you will not be obligated to pay brokerage fees or commissions
or, subject to Instruction 6 of the Letter of Transmittal, transfer taxes on the purchase of Shares by Purchaser. If you hold your Shares through a broker,
dealer, commercial bank, trust company or other nominee you should check with such institution as to whether they charge any service fees.
The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of October 26, 2017 (together with any amendments or supplements
thereto, the “Merger Agreement”), among Parent, Purchaser and the Company, pursuant to which, after the completion of the Offer and the satisfaction
or waiver of certain conditions, Purchaser will be merged with and into the Company, with the Company continuing as the surviving corporation (the
“Merger”). The Merger Agreement is more fully described in the Offer to Purchase.
PARAMOUNT PICTURES/EVERETT COLLECTION
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON
MONDAY, DECEMBER 18, 2017, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
From left, Mel Gibson, Mark Wahlberg, Will Ferrell and John
Lithgow star in ‘Daddy’s Home 2,’ from Paramount Pictures.
Estimated Box-Office Figures, Through Sunday
SALES, IN MILLIONS
FILM
1. Thor: Ragnarok
2. Daddy’s Home 2
3. Murder on the
Orient Express
4. A Bad Moms
Christmas
5. Jigsaw
DISTRIBUTOR
WEEKEND* CUMULATIVE % CHANGE
Disney
Paramount
Twentieth
Century Fox
STX
Entertainment
Lionsgate
$56.6
$30
$28.2
$211.6
$30
$28.2
-54
---
$11.5
$39.9
-31
$3.4
$34.4
-48
*Friday, Saturday and Sunday
Source: comScore
Mel Gibson Comedy
Enjoys Solid Opening
BY BEN FRITZ
Americans welcomed Mel
Gibson back to the big screen
as his comedy “Daddy’s Home
2” scored a solid opening at
the box office. Along with a
new version of “Murder on
the Orient Express,” it contributed to a robust weekend
for Hollywood.
“Thor: Ragnarok,” from
Walt Disney Co.’s Marvel Studios, was No. 1 at the box office in the U.S. and Canada,
with an estimated $56.6 million in the U.S. and Canada.
After playing for two weeks
domestically and three overseas, the third film featuring
Chris Hemsworth as the comic
book god of thunder has
grossed $650.1 million worldwide, making it another major
hit for Marvel.
“Daddy’s Home 2,” from Viacom Inc.’s Paramount Pictures,
and “Murder” from 21st Century Fox Inc.’s Twentieth Century Fox, both performed better
than studios had been expecting based on prerelease surveys, debuting to $30 million
and $28.2 million, respectively.
The first “Daddy’s Home”
opened to $38 million in 2015,
but that was over the Christmas holiday weekend. The new
film is well positioned to draw
family audiences through
Thanksgiving weekend.
It is a much-needed hit for
Paramount, which is ranked
last among Hollywood’s major
studios in box office for the
sixth straight year and has
suffered from a series of disappointments including “Suburbicon” and “Transformers:
The Last Knight.”
The healthy start for the
film indicates many Americans
are willing to embrace Mel
Gibson as the star of a family
comedy, albeit playing a cantankerous
grandfather.
“Daddy’s Home 2” marks Mr.
Gibson’s first starring role in a
studio-financed film in 15
years, after he was virtually
exiled for anti-Semitic, racist
and misogynistic remarks.
Mr. Gibson plays Mark
Wahlberg’s father and a comic
foil to John Lithgow as Will
Ferrell’s father.
Radhika Jones to Succeed
Graydon Carter at Vanity Fair
BY JEFFREY A. TRACHTENBERG
Radhika Jones is expected to
be named editor in chief of
Condé Nast’s Vanity Fair magazine this week, succeeding Graydon Carter, according to a person familiar with the matter.
Ms. Jones, currently the editorial director of the books department at the New York Times
and formerly a deputy managing
editor at Time Inc.’s Time magazine, is expected to bring a
strong journalistic and cultural
background to Vanity Fair.
Vanity Fair is one of the
country’s pop-culture taste
makers and has been playing a
role in shaping the national
political conversation.
Mr. Carter, who helped
make Vanity Fair one of Condé
Nast’s top titles, has served as
editor for 25 years.
In an interview in September, when he disclosed his
plans to leave Vanity Fair, Mr.
Carter said, “I’ve been thinking about taking a break over
the last year. I love my job,
this company, and my staff,
but I want to see if there is a
third act in my life.”
News of Ms. Jones’s expected
appointment was first reported
by Recode. Efforts to reach Ms.
Jones were unsuccessful.
Condé Nast, a unit of
closely held Advance Publications Inc., recently laid off an
estimated 80 staffers as part
of a restructuring of the organization.
The Offer is not subject to any financing condition. The Offer is, however, subject to the following conditions, among others:
• there being validly tendered and not validly withdrawn shares of Company Common Stock and Company Series A Preferred Stock that, considered
together with all other shares of Company Common Stock and Company Series A Preferred Stock (if any) beneficially owned by Parent and its
controlled affiliates (excluding any shares of Company Common Stock and Company Series A Preferred Stock tendered pursuant to guaranteed
delivery procedures that have not yet been received), represent one more share than 50% of the sum of (x) the total number of shares of Company
Common Stock outstanding at the time of the expiration of the Offer, plus (y) solely with respect to any shares of Company Series A Preferred
Stock that remain outstanding as of immediately prior to the acceptance for payment by Purchaser of the shares tendered into the Offer (but, for
the avoidance of doubt, without duplication with respect to Company Series A Preferred Stock that have converted into the right to receive shares
of Company Common Stock), the total number of shares of Company Common Stock into which such outstanding shares of Company Series A
Preferred Stock are convertible, plus (z) the total number of shares of Company Common Stock that the Company would be required to issue upon
conversion, settlement, exchange or exercise of all options, warrants, rights or securities outstanding at the time of the expiration of the Offer that are
convertible, exchangeable or exercisable into share of Company Common Stock (whether then outstanding or for which the conversion, settlement,
exchange or exercise date has already occurred, but in any event without duplication) (such condition, the “Common Stock Minimum Condition”);
• there being validly tendered and not validly withdrawn shares of Company Series A Preferred Stock that, considered together with all other shares
of Company Series A Preferred Stock (if any) beneficially owned by Parent and its controlled affiliates (excluding any shares of Company Series A
Preferred Stock tendered pursuant to guaranteed delivery procedures that have not yet been received), represent one more share than 50% of the sum
of the total number of shares of Company Series A Preferred Stock that remain outstanding as of immediately prior to the acceptance for payment
by Purchaser of the shares tendered into the Offer (but, for the avoidance of doubt, without duplication with respect to Company Series A Preferred
Stock that have converted into the right to receive shares of Company Common Stock) (such condition, the “Preferred Stock Minimum Condition,”
and together with the Common Stock Minimum Condition, the “Minimum Tender Condition”);
• the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, including
the rules and regulations promulgated thereunder, having expired or been terminated;
• the Company having performed in all material respects its obligations required to be performed prior to the expiration time of the Offer under the
Merger Agreement, and any failure to perform having been cured prior to the expiration time of the Offer;
• there not being in effect any judgment, order, writ, injunction or decree (whether temporary, preliminary or permanent) by a court of competent
jurisdiction restraining, enjoining or otherwise prohibiting consummation of the Offer; and
• other customary conditions.
A more detailed discussion of the conditions to consummation of the Offer is contained in the Offer to Purchase.
T H E BOA R D OF DIR EC TOR S OF T H E COM PA N Y U N A N I MOUSLY
RECOMMENDS THAT YOU TENDER ALL OF YOUR SHARES INTO THE OFFER.
After careful consideration, the Company’s board of directors (the “Company Board ”) unanimously (a) determined that the Merger Agreement, the
Offer, the Merger and the other transactions contemplated by the Merger Agreement, are advisable and in the best interests of the Company and the
Company’s stockholders; (b) elected that the Merger Agreement and the Merger contemplated thereby be expressly governed by and effected under
Section 251(h) of the Delaware General Corporation Law (the “DGCL”), and that the Merger be consummated as soon as practicable following the
consummation of the Offer; (c) approved and declared advisable the Merger Agreement, the Offer, the Merger and the other transactions contemplated
by the Merger Agreement in accordance with the requirements of the DGCL; and (d) resolved to recommend that the Company’s stockholders accept the
Offer and tender their Shares to Purchaser pursuant to the Offer.
The purpose of the Offer and the Merger is for Parent and its affiliates, through Purchaser, to acquire control of, and the entire equity interest in, the
Company. Following the consummation of the Offer, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Purchaser
intends to effect the Merger.
No appraisal rights are available to holders of Shares in connection with the Offer. However, if the Merger takes place, stockholders who have not
tendered their Shares in the Offer and who comply with applicable legal requirements will have appraisal rights under the DGCL.
Upon the terms and subject to the conditions of the Merger Agreement, in the event that Purchaser acquires more than 50% of the then outstanding
Shares pursuant to the Offer, the parties have agreed to take all necessary and appropriate action to cause the Merger to become effective, in accordance
with Section 251(h) of the DGCL, as promptly as reasonably practicable after such acquisition, without a meeting of the stockholders of the Company.
Subject to the terms of the Merger Agreement and to the extent permitted by applicable law, Purchaser expressly reserves the right to waive any
conditions to the Offer (provided that the Minimum Tender Condition described above may be waived only with the prior written consent of the
Company), or modify the terms of the Offer.
Subject to the provisions of the Merger Agreement and the applicable rules and regulations of the Securities and Exchange Commission, Purchaser
reserves the right, and under certain circumstances Purchaser may be required, to extend the Offer, as described in Section 1 of the Offer to Purchase.
Any extension, waiver or amendment of the Offer, or delay in acceptance for payment or payment, or termination of the Offer will be followed, as
promptly as practicable, by public announcement thereof, such announcement in the case of an extension to be issued not later than 9:00 a.m., New York
City time, on the next business day after the previously scheduled expiration time of the Offer in accordance with the public announcement requirements
of Rules 14d-4(d), 14d-6(c) and l4e-1(d) under the Exchange Act.
For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered, and not properly
withdrawn, prior to the expiration time of the Offer if and when Purchaser gives oral or written notice to the Depositary of Purchaser’s acceptance for
payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment
pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for
the purpose of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest
be paid on the Common Stock Offer Price or the Preferred Stock Offer Price for Shares, regardless of any extension of the Offer or any delay in
making payment for Shares.
In all cases, payment for Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of
(a) certificates for such Shares or timely confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust
Company (“DTC”) pursuant to the procedures set forth in Section 3 of the Offer to Purchase, (b) a Letter of Transmittal (or facsimile thereof), properly
completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in Section 3
of the Offer to Purchase) in lieu of the Letter of Transmittal), and (c) any other documents required by the Letter of Transmittal.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to the expiration time of the Offer. Further, if Purchaser has not accepted
Shares for payment by January 12, 2018, they may be withdrawn at any time prior to Purchaser’s acceptance for payment after that date. For a withdrawal
of Shares to be effective, a written or facsimile transmission notice of withdrawal must be timely received by the Depositary at one of its addresses set forth
on the back cover of the Offer to Purchase. Any notice of withdrawal must specify the name of the person having tendered the Shares to be withdrawn, the
number of Shares to be withdrawn and the name of the registered holder of the Shares to be withdrawn, if different from that of the person who tendered
such Shares. The signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as defined in the Offer to Purchase), unless such
Shares have been tendered for the account of any Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as
set forth in Section 3 of the Offer to Purchase any notice of withdrawal must specify the name and number of the account at DTC to be credited with the
withdrawn Shares. If certificates representing the Shares have been delivered or otherwise identified to the Depositary, the name of the registered owner
and the serial numbers shown on such certificates must also be furnished to the Depositary prior to the physical release of such certificates.
All questions as to the form and validity (including time of receipt) of any notice of withdrawal will be determined by Purchaser or Parent, in its
sole discretion, which determination will be final and binding. No withdrawal of Shares will be deemed to have been properly made until all defects
and irregularities have been cured or waived. None of Purchaser, Parent or any of their respective affiliates or assigns, the Depositary, the Information
Agent (listed below) or any other person will be under any duty to give notification of any defects or irregularities in any notice of withdrawal or incur
any liability for failure to give such notification. Withdrawals of tenders of Shares may not be rescinded, and any Shares properly withdrawn will be
deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be retendered by following one of the procedures
for tendering Shares described in Section 3 of the Offer to Purchase at any time prior to the expiration time of the Offer.
The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 under the Exchange Act is contained in the Offer to Purchase and is
incorporated herein by reference.
The Company has provided Purchaser with the Company’s stockholder list and security position listings for the purpose of disseminating the
Offer to holders of Shares. The Offer to Purchase and related Letter of Transmittal will be mailed to record holders of Shares whose names appear on
the Company’s stockholder list and will be furnished for subsequent transmittal to beneficial owners of Shares, to brokers, dealers, commercial banks,
trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as
participants in a clearing agency’s security position listing.
The receipt of cash for Shares in the Offer or the Merger will be a taxable transaction for United States federal income tax purposes. Stockholders
should consult their own tax advisors as to the particular tax consequences of the Offer and the Merger to them. For a more complete description of
certain material U.S. federal income tax consequences of the Offer and the Merger, see Section 5 of the Offer to Purchase.
The Offer to Purchase, the related Letter of Transmittal and the Company’s Solicitation/Recommendation Statement on Schedule 14D-9
contain important information and should be read carefully and in their entirety before any decision is made with respect to the Offer.
Questions and requests for assistance may be directed to the Information Agent at its address and telephone number set forth below. Requests for
copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agent or to brokers, dealers, commercial banks
or trust companies. Such copies will be furnished promptly at Purchaser’s expense. Purchaser will not pay any fees or commissions to any broker or dealer
or any other person (other than the Information Agent) for soliciting tenders of Shares pursuant to the Offer.
The Information Agent for the Offer is:
1290 Avenue of the Americas, 9th Floor
New York, NY 10104
Shareholders Call Toll-Free: (866) 431-2096
November 13, 2017
B6 | Monday, November 13, 2017
THE WALL STREET JOURNAL.
* ***
BUSINESS & FINANCE
Bankers See Shift in Tone
Trump’s new financial
regulation team takes
friendlier stance
toward the industry
‘Changing the tenor of
supervision will
probably actually be the
biggest part of what it
is that I do’
BY RYAN TRACY
AND CHRISTINA REXRODE
BY MELANIE EVANS
The Affordable Care Act required Medicare to penalize hospitals with high numbers of
heart-failure patients who returned for treatment shortly after discharge. New research
shows that penalty was associated with fewer readmissions,
but also higher rates of death
among that patient group.
The researchers said the
study results, being published in
JAMA Cardiology, can’t show
cause and effect, but “support
the possibility that the [penalty]
has had the unintended consequence of increased mortality in
patients hospitalized with heart
failure.”
Few studies have looked at
the possible unintended consequences under the penalty,
which went into effect in October 2012 under a broad push by
Medicare to pay hospitals based
on how well they care for patients, not strictly on the volume
of care they provide. Lowering
readmission rates was seen as a
worthy goal for improving pa-
Randal Quarles
ANDREW HARRER/BLOOMBERG NEWS
The Trump administration
has a strong message for the
country’s bankers: You are not
the villain anymore.
President Donald Trump’s
newly minted financial regulatory team—growing in size
with recent confirmations—is
sounding a friendlier tone
than its predecessor, which restricted the industry following
the 2008 bank bailouts.
“Changing the tenor of supervision will probably actually be the biggest part of what
it is that I do,” said Randal
Quarles, the Federal Reserve’s
regulatory chief, in maiden
public remarks last week before bankers in New York.
After the financial crisis,
the credibility of financial
firms took a big hit among
regulators and lawmakers of
both parties, leading to
stricter rules for the industry
and less influence over Washington’s decisions about how
the firms ran their businesses.
Mr. Quarles and other new
regulators have begun re-evaluating the resulting Wall
Street rule book, but rewriting
rules takes time. In the near
term, one thing they can do is
change the posture the government takes in day-to-day interactions with financial firms.
One day after Mr. Quarles’s
remark, Keith Noreika, who
since May has served as acting
comptroller of the currency,
criticized Obama-era officials
Study Finds Penalty
Raised Heart Patient
Mortality Rates
for being too quick to impose
harsh sanctions on banks
viewed as not meeting the legal requirements to lend in
poor communities.
“My kid—[if] I told her that
she had to study for her science test, but she always
failed, I don’t think she would
study for her science test,” he
said, explaining his approach.
“The same goes for a bank:
You want to incentivize them.”
Mr. Noreika could be replaced as soon as this week by
Joseph Otting, a former
banker who is Mr. Trump’s
permanent nominee for the
comptroller position. The Senate is expected to hold a final
vote on Mr. Otting’s nomination in the coming days.
Bankers have taken notice
ADVERTISEMENT
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
@1=A- ,A, B1O @C '@ +' 9A DA,A 1 -=, = '+ 1' 9 ':=1 -%
1 = 2
' = =11'D='1, =1 1 1 7()>
1 3 -
: #78(%3 8 (( 5#2 ; "!%2 !8 #4 #& 2"%"#" %&8! '
' ; 657 @ , B/"
" D - 1 8B/"
" 8-" , ' 2
% ! "
#
$ %% &
" $ "
8-" ,(
E" E" " 6 B/"
@, FF 5()6 8B/"
"G %(
% 8- % # "
#
$ %% &
86
6 > "$ % & # D - "
# 9 % % =* =.)+
) > "$ #&2" 4 - D
- # % % % B D
=" " C + " % " " " # % " E" B $" " B " % #
% " B B *.. (4 (,
5#"2"$ #! "4 54 . =.)+ 8D - " # %
" " # B E" " B " % > A%" ! 2# B/"
" 54 . =.)+ # *.. (4
(5#"2"$ #! "4 4 % 4
8 ' - " # B/"
" : " " " = " A # " " 4 #" % " 4 " # % # B/"
" % " % ' -
2 3 ! 3 " B B A ,/ " < -" 667 D
, ," 655 1 6G656 $
"
' - === ! D/ , O<: & :: 6> 1 , 1 6G656 $
(
' '4 @, B/"
>56 D , 655
1 6G656 )*+ !
, ($' % 3 :" ," ! !:" O - < D :: 5 / % 1# C/ 1C
57G $
$
!! B 4 84 9 # (
%4 + =.)+ # C. #4 (5#"2"$ #! "4 @ , B/"
" D - 1 >5 D , " (>
1 6G656
; 2#! D%82(#" #& A8%" #$8#$ " 2# > > @ 0 > : 7 E8""! , / % - 2 /#1 /"1 #%%!!"$ &4""!#"5 $F! 9!" #
999 4"4$% 4? #" 5#" !G /""1 !84""$ # E8! " 9""$ #" 5#" !
% ? 8! 4" *C** 58 8" ).. &2#& "22! C)H+G /"""1 3 %#22"$
I)I,C.H,I.. 9"" ##&# /1 ; # ; 5"# # (!??%;%98!% 8!
$ 5 + 9 = % # # E" " E" % % % % "
- # " % $
4 " # 2 =% = *)*> =% 9 ) - 65; # B"(
% ," 655 1 6G67)
6
G " " # 4 % '#( )*
#! )+,)-)-. /01
! " # "$ %&"$
/0 "23 &4""!&1
"$
(!#"5 ! ""
#
"
$%"
%"
& %
'#( )* #!! "
% # $%"
% %
! ! '(% ) "%
*
" % # +)
" *
, - # *
! . & #6"2"# #78(%3 #9 ""
! / 0
% 0 # 1
# 2
3%
. #6"2"# 8
% "%
"$ %&"$ 4 "%
"" ! %"
& # # 5
1
0
5-1-0- 66 - #78(%3 & % $"" : " 7
+8"%! 0 %
#
9 2
- :! 2- ; # 5
1
+8"%! 0 # 1
<% # , =8 3
+, :
, =8 , =8 / <
%
> -- "
?
%
"" # @
# # A
% % $"" #"$- B % 9
0 ! %
# 4 % 9
, ! ,% ,
! #! ! " 4 # " "C 4 # $
% & ' !()** "C " + , D4 -"
! ? %% 0
# 9 2
- :! 2- 5
1
+8"%! 2
% " < @ 8 E F,
@ /& ' B
, =8
= B> :%) ? 2- .
% # %
"
$ 4 + % / G "
A
%
0"
& 0
" # % %
"
0 ! % % %
! #! #%8#223 %"5& 3 #%' ; '4 2#
'# <.. (4 /(5#"2"$ #! "41 %4 ) =.)+- # "
(
% !
4 % " ! #" " 4 " # %
! %%
+8"%! 00 ? %% 0
* 1!
,% % %%
# +8"%! 00 ,
">HH
%#-!-%- @B0? ", A
%
% ? F -, I" 8-% J /&$/7 %
##
# # %
5
1
- 1
%
! ##
5
1
'
" # 5-1," *)) 1 ' K &L , 4 ! " # ! ##
%% " % ##
# %
5
1
# C $ 4 " 2 ' K &L , 134!+2 5G5*564555(7 8 3
% 3 E
& &9 1 +1))6G 8 4 ' ' ,% : 1 (;G* 8
' ' < & + : 1 !(6GG57* 8 ( ! , 33: 33: :9 331 2&"$ ""! ' - 1 D===4=M : 1 !(6>GGG 8 >?@
3
% < ? :9 - * /; > 3
% < :9 - * // @ ( ! , 3< .H? 3< . =.=) ""!
' ' - + : 1 !(677GG* 8 '-1 = &9 1 +1 )655G$
' - 1 ,$ &9 1 +1)>776G 8 > 3< 7! . :9 * &&.' #3 > ( ! , 33<* 3< 3< . =.== ""!N 9 ?
?
?
( ! #
8( !- 7
# <
0"
& 0
33: @
4 ! % : G; 4 5 56 , 2
2 +) -
of the shift in tone. James Dimon, chief executive of J.P.
Morgan Chase & Co., wrote in
April that “it is an understatement to say improvements
could be made. The regulatory
environment is unnecessarily
complex, costly and sometimes confusing.”
In October, after a Treasury
Department report recommended rethinking rules that
he and other bankers have
criticized, Mr. Dimon said: “I
think the Treasury did an exceptional job.”
“The amount of regulatory
reform has been limited, but
the way that people are thinking about and interpreting it is
better,” Terry Dolan, chief financial officer of U.S. Bancorp,
said in a recent interview.
Mr. Trump set a new tone
from the start. At a White
House event with chief executives days after taking office,
he pointed to Mr. Dimon and
said “there is nobody better”
to give him regulatory advice.
In the early years of the
Obama administration, tensions between banks and the
president were far higher. In a
2009 interview, President Barack Obama rebuked “fat cat
bankers on Wall Street” who
were “drawing down $10, $20
million bonuses after America
went through the worst economic year that it’s gone
through in—in decades.”
The two presidents also assembled different financial
teams. Mr. Trump’s Treasury
Secretary, Steven Mnuchin,
worked on Wall Street and ran
OneWest Bank, now part of
CIT Group Inc.
Among other Trump-appointed regulators, Mr. Quarles gave banks legal advice
and invested in them, Mr. Noreika is a career banking lawyer
and Mr. Otting is a longtime
banker who worked alongside
Mr. Mnuchin at OneWest.
By contrast, Mr. Obama’s
comptroller, Thomas Curry,
was a longtime bank regulator.
His Fed regulatory chief, Daniel Tarullo, was a law professor. Treasury secretaries Timothy Geithner and Jacob Lew
spent much of their prior careers in government.
Mr. Mnuchin’s banking experience helped him realize
early on that a change in regulatory personnel could have an
impact. In March, he promised
a group of community bankers
visiting the White House that
the administration intended to
help them by “changing the
tone,” according to attendees.
Rates are compared
before the ACA
passed and after
penalties took effect.
tient care during initial admissions and during follow-up care.
The new study analyzed data
for 115,245 Medicare patients
hospitalized for heart failure at
416 hospitals between 2006 and
2014. Hospitals chosen for the
study were part of a separate
American Heart Association effort to reduce heart-failure readmission rates.
Researchers compared hospital readmission and mortality
rates before the Affordable Care
Act passed in 2010 and after
penalties took effect in late
2012.
One in five heart failure patients returned to the hospital
within 30 days before the ACA
passed. That dropped to 18.4%
after the penalties. Mortality
rates increased from 7.2% before
the ACA to 8.6% after the penalties, or about 5,400 additional
deaths a year for Medicare beneficiaries not in managed care
plans.
“CMS continuously monitors
the impact of the measures used
in our programs, including input
from peer reviewed research
and other sources,” said a
spokesman for the Centers for
Medicare and Medicaid Services,
or CMS. “Studies like this are
important inputs as we continuously assess our programs.”
One author of the paper, Dr.
Gregg Fonarow, co-chief of the
University of California, Los Angeles cardiology division, said he
would like to see CMS suspend
and review the heart failure
penalty program.
Others disagreed, citing research that has reached less
worrying conclusions about the
penalty. “I am not worried about
it right now,” said Dr. Leora Horwitz, an associate professor of
population health and medicine
at New York University.
She co-wrote a study published in July in JAMA which
she said found “little to no” correlation between changes in how
often heart failure patients were
readmitted and how often they
died. The study used data for 2.9
million Medicare heart failure
patients hospitalized between
2008 and 2014 and analyzed readmission rates for each individual hospital.
Dr. Horwitz said a few things
may explain the difference in results from the latest work.
Her study looked at readmission and mortality rates for each
individual hospital, whereas the
new study pooled patients at all
participating hospitals into one
group and calculated the total
rate changes for the group.
She added that the new study
may reflect a rise in the overall
U.S. death rate for heart failure
in recent years. That may be because hospitals increasingly admit only the sickest patients
who are at a higher risk of dying, she said.
RETIREMENT | By Anne Tergesen
How to Get Tax-Free Retirement Income
When it
comes to saving for retirement, I now
use two accounts: My
401(k) and a health-savings
account.
Many people overlook
HSAs as a retirement-savings
vehicle because they are typically used to pay current
medical bills. But these accounts, which Congress authorized in 2003, come with
more tax advantages than
401(k)s and individual retirement accounts when used to
cover medical costs—
whether now or in retirement. And there are ways to
use them to create tax-free
income in retirement.
Saving for medical costs
makes sense given that they
are a major expense in retirement. A 65-year-old couple who retires today and
has no reason to expect an
early death will need about
$265,000 to have a 90%
chance of having enough for
Medicare premiums and the
38% of medical costs Medicare doesn’t cover, according
to the nonprofit Employee
Benefit Research Institute.
(That amount doesn’t include dental and long-termcare expenses.)
The HSA “is the most taxfavored savings vehicle in
the tax code,” says Leo Acheson, a senior analyst at
Morningstar Inc. who wrote
a recent report about HSAs.
As with a traditional
401(k) or IRA, an HSA allows
you to set aside money without paying federal or state
income taxes on it. Money in
HSAs grows tax-free and, if
used now—or later—for
medical expenses, can be
withdrawn tax-free. In contrast, with a traditional
401(k) or IRA, income tax is
paid on withdrawals.
Because of the HSA’s triple tax advantage, experts
recommend that those who
can afford to contribute to
More workers have been putting
their health-savings account funds
into HSA investments as awareness
grows of the accounts’ potential to
deliver tax-free retirement income.
Investments
every additional dollar I
earn from taxation forever,
assuming I use that for medical bills.
$60 billion
Increasing Interest
D
40
Cash
20
0
2006 ’07 ’08 ’09 ’10
’11
’12
’13
’14
’15
’16 ’17* ’18* ’19*
*Projections
Source: Devenir Group LLC
both an HSA and a 401(k)
kick in the maximum to
both.
F
or a 401(k), the current annual limit is
$18,000 for people under age 50 and $24,000 for
older investors—numbers
that will rise to $18,500 and
$24,500 in 2018. The annual
caps for HSAs are $3,400 for
individuals and $6,750 for
families in 2017 and $3,450
and $6,900 in 2018—plus
those 55 or older can kick-in
an extra $1,000.
Those who can’t afford to
put the maximum in both
should first allocate enough
to their 401(k) to get the
company match and then
switch to the HSA (and later
return to the 401(k) if they
can save more), experts say.
To open an HSA, you
must be covered by an HSAqualified health-insurance
plan. Among other things,
the plan must have a deductible of at least $1,300
for individuals and $2,600
for a family, thresholds that
rise to $1,350 and $2,700 in
2018.
I signed up for such a
plan in 2016. To help build a
buffer against my plan’s
$6,800 out-of-pocket spending cap for in-network services, including a $2,800 de-
THE WALL STREET JOURNAL.
ductible, my company
deposited $500 into my
HSA. I put in the $1,300 I
saved on premiums by using
the high-deductible plan instead of the conventional
plan. Eventually, I added
$2,050 more because I
wanted to make the maximum annual contribution allowed, which, for individuals, was $3,350 in 2016. In
2017, I contributed the
$3,400 individual limit.
The biggest payoff with
an HSA comes when the
money set aside isn’t used
for current medical bills and
instead compounds over
time for use in retirement,
says Rob Austin, director of
research at 401(k) recordkeeper Alight Solutions LLC.
“The longer you let HSA
money grow, the more valuable it becomes.”
To see why, consider my
approach: For the sake of a
simple, round number, let’s
assume I have a $75,000 salary. That means that after
paying federal income tax at
a 25% rate, New York state
income tax at a 6.45% rate
and FICA tax (which finances Social Security and
Medicare) at 7.65%, I get to
keep 61 cents of each additional dollar I earn—not
great. By saving in an HSA,
I can shelter all 100 cents of
ue to the HSA’s extra
tax advantages, each
dollar I put into my
account will turn into $2.19
after 20 years, assuming a
4% annual inflation-adjusted
return, according to Vanguard Group. By contrast, the
same dollar will be worth
just $1.64 after I take it out
of a traditional 401(k) in two
decades and pay income
taxes on the withdrawal.
(The example assumes a 25%
federal income-tax rate and
ignores state tax.)
Even if I decide to tap my
HSA to cover current medical bills, it is still worthwhile
to contribute, said Roy
Ramthun, a consultant who
specializes in high-deductible plans and HSAs. The
reason: The upfront tax deduction allows me to keep
the 39 cents a dollar I would
otherwise have had to pay in
taxes.
To withdraw money taxfree from an HSA, you must
use it for qualified expenses.
Those include not just medical bills but also dental and
vision-care expenses, premiums for all types of Medicare plans except Medigap,
and a portion of long-termcare insurance premiums.
If you use your HSA for
nonmedical expenses, you
will owe income tax on your
distributions—and a 20%
penalty if you are younger
than 65.
If you stockpile receipts
for past medical costs you
paid out of pocket since establishing the HSA, you can
file for reimbursement in retirement. Doing this will allow you to supplement your
retirement income tax-free
in years in which tapping
other accounts would push
you into a higher tax bracket
or expose you to higher
Medicare premiums.
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.
Monday, November 13, 2017 | B7
Time to change where
you buy business travel.
Exclusively for the “do-it-yourself” business traveler.
Great prices. Concierge-level service at no extra charge, 24/7.
You travel on business... to get business done.
But if you have no corporate travel department or support,
you’re on your own. You do it all yourself, every time.
You research lights, hotels and rental cars. Then you
compare prices, book everything. . . and maybe re-book
everything when your plans shift or bad weather hits.
It’s time to change. Our new service does it all for you.
We work directly for the do-it-yourself business traveler.
There are no fees or commitments, just great prices
with 24/7 concierge-level support at no extra charge.
You can save hours shopping for lights and rooms because
we do it for you in seconds. Choose whatever you need
and you’re done. You can pay even less if you buy air and
hotel together with our special package pricing.
Where we really shine is how we take care of you.
Our travel experts are easy to reach every minute of
your trip. Just one touch on our mobile app and you
are connected to real people, right away.
What’s more, we never rush you. You can call, chat or
email and we’ll stay with you until you’re fully satisied.
Canceled light? We ind alternatives. Bad weather?
We can help. Business travel is far less stressful when
someone has your back, day and night.
If you’re a do-it-yourself business
traveler, now you can buy your business
travel from the newspaper that has
been covering business for 128 years.
We’re making business travel better,
so you can get business done.
WSJB U S I N E S S T R AV E L . C O M
POWERED BY
Business Travel Service
The Wall Street Journal Business Travel Service is operated independently of the Journal's news department.
All international and domestic travel must start in the U.S. and all buyers must be U.S.-based.
Live expert customer
service, 24/7, on every
trip at no extra charge.
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 | Monday, November 13, 2017
MARKETS DIGEST
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
2582.30 t 5.54, or 0.21% last week
High, low, open and close for each of
the past 52 weeks
23422.21 t 116.98, or 0.50% last week Trailing P/E ratio 21.17
P/E estimate *
19.22
High, low, open and close for each of
Dividend yield
2.17
the past 52 weeks
20.08
17.66
2.52
All-time high 23563.36, 11/08/17
Current divisor 0.14523396877348
Last
Year ago
Trailing P/E ratio 24.42 23.99
P/E estimate *
19.37 18.05
Dividend yield
1.92
2.17
All-time high: 2594.38, 11/08/17
t
t
Friday's close
IPOs in the U.S. Market
Initial public offerings of stock expected this week; might include some
offerings, U.S. and foreign, open to institutional investors only via the
Rule 144a market; deal amounts are for the U.S. market only
2575
24000
Expected
pricing date Filed
Week's high
DOWN
Monday's open
New to the Market
Public Offerings of Stock
UP
Friday's close
65-day moving average
23000
Monday's open
2500
11/14
10/18 SendGrid
Operator of a cloud based
customer communication
platform.
SEND
N
7.7
13.50/ MS, JPM
15.50
ASNS
Nq
3.1
15.00/ Citi, Cowen & Co,
17.00 Piper Jaffray
21000
2350
20000
2275
11/15
10/20 Arsanis
Provider of healthcare
services.
2200
11/15
10/20 Jianpu Technology
Operator of a website for
discovery &
recommendation of
financial products.
JT
N
9.0
8.50/ GS, MS, JPM
10.50
11/16
10/23 Bluegreen Vacations
Acquires, develops,
markets & sells
recreational land,
residential land & vacation
ownership resorts.
BXG
N
6.5
16.00/ Stifel, Credit Suisse, ,
18.00 BofA ML,
SunTrust
11/16
9/11
MOLC
N
58.5
14.00/ JPM, UBS, HSBC,
17.00 Itau BBA
11/16
10/20 Sailpoint Technologies
Developer of enterprise
software focusing on
identity and access
management.
SAIL
N
20.0
9.00/ MS, Citi, Jefferies,
11.00 RBC Cptl Mkts
11/16
10/23 scPharmaceuticals
Developer of
pharmaceutical products
for subcutaneous delivery.
SCPH
Nq
6.4
14.00/ Jefferies, Leerink Prtnrs,
16.00 BMO Cptl Mkts
11/16
10/19 Stitch Fix
Software-E-Commerce
company operating a
personal shopping
platform.
SFIX
Nq
10.0
18.00/ GS, JPM, Barclays,
20.00 RBC Cptl Mkts,
Piper Jaffray,
Stifel, W. Blair
200-day moving average
200-day moving average
2125
18000
Bars measure the point change from Monday's open
2050
17000
M
A
M
J
J
A
S
O
t
Primary
market
NYSE weekly volume, in billions of shares
N
N
t
F
Composite
D
J
F
M
A
M
J
J
A
S
O
D
J
F
M
A
M
J
J
A
S
O
N
Financial Flashback
The Wall Street Journal, Nov. 13, 2009
30
20
10
0
N
Germany, the biggest economy in Europe, says quarterly
growth was 0.7%, helping to pull the entire eurozone out
of its two-year-old recession.
N
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Nasdaq Composite
Latest Week
Close
Net chg
Low
% chg
52-Week
Close (l)
Low
Dow Jones
-0.50
-2.60
Industrial Average 23602.12 23310.02 23422.21 -116.98
Transportation Avg 9766.80 9484.91 9501.36 -253.64
Utility Average
761.54 747.75
3.52
756.95
Total Stock Market 26882.68 26532.64 26704.08 -84.92
678.94
Barron's 400
687.98 672.91
-7.27
l 23563.36
18847.66
8578.65
625.44
22440.45
566.59
0.47
-0.32
-1.06
l
10038.13
l
759.59
l 26830.6
l
691.56
t 13.50, or -0.20%
% chg
YTD 3-yr. ann.
% chg
High
24.3
10.8
20.6
19.0
19.8
18.5
5.1
14.8
14.7
12.9
10.0
1.6
7.7
8.0
7.9
28.9
32.8
25.4
29.7
13.2
14.7
last week
6780
6740
Nasdaq Stock Market
Nasdaq Composite
Nasdaq 100
6795.52 6687.28
6346.98 6248.29
6750.94
6309.07
-0.20
-13.50
13.48
l
6789.12
l 6345.81
5218.40
4702.04
0.21
6700
Standard & Poor's
2597.02 2566.33
1845.20 1814.98
905.83 886.07
500 Index
MidCap 400
SmallCap 600
2582.30
1825.75
893.77
-0.21
-0.56
-0.79
-5.54
-10.23
-7.11
l
2164.20
1562.99
781.84
l
l
2594.38
1843.36
918.72
15.3
9.9
6.7
19.3
16.8
14.3
3 6 7 8 9 10
November
8.2
8.4
9.5
1463.49 1475.27 -19.64
12268.07 12322.60 -50.46
534.66
-2.14
537.99
4058.16 4088.06 -119.16
529.99
-4.02
533.09
97.05
-4.53
97.59
80.55
-0.12
80.60
135.37
6.09
140.98
1278.69 1303.06
3.09
11.29
9.29
2.15
-1.31
-0.41
-0.40
-2.83
-0.75
-4.44
-0.15
l
1282.39
10652.24
484.80
3075.02
463.78
82.67
73.03
4.52
117.79
0.24
832.08
23.52
9.14
1512.09
l 12430.52
l
545.98
l
l
l
l
l
l
l
4304.77
560.52
102.31
96.72
192.66
1321.13
16.04
Close
DJ Americas
Sao Paulo Bovespa
S&P/TSX Comp
S&P/BMV IPC
Santiago IPSA
EMEA
Stoxx Europe 600
Stoxx Europe 50
Eurozone
Euro Stoxx
Euro Stoxx 50
Austria
ATX
Belgium
Bel-20
France
CAC 40
Germany
DAX
Greece
Athex Composite
Israel
Tel Aviv
Italy
FTSE MIB
Netherlands AEX
Portugal
PSI 20
Russia
RTS Index
South Africa FTSE/JSE All-Share
Spain
IBEX 35
Sweden
SX All Share
Switzerland Swiss Market
U.K.
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Malaysia
Singapore
South Korea
Taiwan
S&P/ASX 200
Shanghai Composite
Hang Seng
S&P BSE Sensex
Nikkei Stock Avg
FTSE Bursa Malaysia KLCI
Straits Times
Kospi
Weighted
Low
2963.38
384.68
259.14
–0.43
–0.30
–0.35
2428.04
315.49
206.73
620.55
72165.64
16039.26
48028.30
4091.58
–0.21
–2.37
520.49
57110.99
14555.41
44364.17
3137.71
388.69
3177.52
390.90
3593.76
3393.23
4026.26
5380.72
13127.47
734.12
1417.35
22560.79
547.32
5301.70
1156.74
59776.12
10092.70
582.08
9134.16
7432.99
–1.86
–1.84
–2.28
–2.61
–0.50
–2.10
–2.49
–2.61
–3.86
–0.72
–1.97
–1.41
–1.25
The Global Dow
DJ Global Index
DJ Global ex U.S.
Americas
Brazil
Canada
Mexico
Chile
52-Week Range
Close
6029.40
3432.67
29120.92
33314.56
22681.42
1742.28
3420.10
2542.95
10732.67
0.12
–1.04
–1.71
4.27
0.23
–2.56
–3.02
–2.02
–1.68
1.17
1.81
1.81
–1.10
0.63
0.08
1.12
–0.59
–0.63
337.50
2810.21
323.64
3015.13
2480.75
3426.21
4489.27
10513.35
578.17
1363.50
16217
445.41
4370.84
960.32
48935.90
8607.1
504.44
7741.82
6730.43
5326.2
3052.79
21574.76
25765.14
17374.79
1616.64
2787.27
1963.36
8931.03
Consumer Rates and Returns to Investor
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
High
2984.71
386.89
260.93
17.1
18.0
21.1
Selected rates
A consumer rate against its
benchmark over the past year
5-year CDs
1.50%
1.00
t
Federal-funds 0.50
target rate
0.00
623.60
76989.79
16131.79
51713.38
4255.93
14.8
19.8
4.9
5.2
26.9
396.77
3276.11
400.44
3697.40
3445.23
4118.51
5517.97
13478.86
858.08
1478.96
23046
555.22
5475.67
1195.61
60182.60
11135.4
600.20
9322.05
7562.28
7.5
5.5
11.6
9.2
29.6
11.6
10.7
14.3
14.1
–3.6
17.3
13.3
13.3
0.4
18.0
7.9
8.9
11.1
4.1
6049.4
3432.67
29136.57
33731.19
22937.60
1792.35
3423.91
2557.97
10840.34
Interest rate
Barclays
Wilmington, DE
2.35%
888-720-8756
EverBank
Jacksonville, FL
2.35%
855-228-6755
Home Savings Bank
Salt Lake City, UT
2.35%
801-487-0811
Synchrony Bank
Morristown, NJ
2.35%
800-903-8154
Goldman Sachs Bank USA
2.40%
New York, NY
855-730-7283
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.39
1.41
Money market, annual yield
0.33
0.32
Five-year CD, annual yield
1.47
1.49
30-year mortgage, fixed†
3.92
3.88
15-year mortgage, fixed†
3.24
3.25
Jumbo mortgages, $424,100-plus† 4.23
4.29
Five-year adj mortgage (ARM)† 3.48
3.46
New-car loan, 48-month
3.01
3.01
HELOC, $30,000
5.19
4.48
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.91 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
l
4.48
1.25
4.25
1.41
0.36
1.49
4.33
3.50
4.88
4.03
3.36
5.30
1.10
1.98
Natural gas, $/MMBtu 3.213
Gold, $ per troy oz.
1272.40
0.23
7.67 -13.72
5.90
0.47 10.64
U.S. Dollar Index
94.39
-0.55 -0.58 -7.65
WSJ Dollar Index
87.58
-0.38 -0.43 -5.77
Euro, per dollar
0.8573 -0.0041 -0.47 -9.82
Yen, per dollar
U.K. pound, in dollars
113.54
-0.53 -0.46 -2.96
1.32 0.0116
0.89
6.85
52-Week
Low Close(l) High
% Chg
DJ Commodity
532.01
TR/CC CRB Index
166.50
l
Crude oil, $ per barrel 42.53
l
Natural gas, $/MMBtu
616.46 15.54
l
2.56
195.14
6.04
57.35 30.71
3.93 22.68
l
l
1127.80
1346.00
4.00
U.S. Dollar Index
91.35
l
103.25 -4.65
WSJ Dollar Index
84.49
l
93.56 -2.31
Euro, per dollar
0.83
Yen, per dollar
0.96 -6.93
l
106.68
U.K. pound, in dollars
l
l
1.20
118.18
6.43
1.36
4.75
Real-time U.S. stock
quotes are available on
WSJ.com. Track mostactive stocks, new
highs/lows, mutual
funds and ETFs.
WSJ
.COM
Plus, get deeper money-flows data and
email delivery of key stock-market
data.
All are available free at
WSJMarkets.com
1.00
1.00
1.18
-0.10
-0.06
-0.14
0.05
-0.07
-0.13
-0.23
0.12
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Yield to maturity of current bills,
notes and bonds
3.75%
Friday
One year ago
2.25
0
1.50
–5
0.75
–10
0.00
–15
1
3 6
month(s)
1 2 3 5 710
years
maturity
30
WSJ Dollar index
s
Euro
s Yen
Sources: Ryan ALM; Tullett Prebon; Thomson Reuters; WSJ Market Data Group
Corporate Borrowing Rates and Yields
Bond total return index
Spread +/- Treasurys,
Yield (%)
in basis pts, 52-wk Range
Last Wk ago
Last
Low High
10-yr Treasury, Ryan ALM
DJ Corporate
Aggregate, Barclays Capital
High Yield 100, Merrill Lynch
Fixed-Rate MBS, Barclays
Muni Master, Merrill
EMBI Global, J.P. Morgan
2.397
3.172
2.670
5.572
2.910
2.000
5.662
38
350
25
10
324
103.7
180 days
67.1
168.6
180 days
% Chg From
Friday3s Offer 1st-day
close ($) price close
Bandwidth
BAND Nov. 10/$20.00
Erytech
ERYP Nov. 10/$23.26
PPDAI Grp
PPDF Nov. 10/$13.00
Apellis Pharmaceuticals
APLS Nov. 9/$14.00
Sogou
SOGO Nov. 9/$13.00
21.19
6.0
...
24.75
6.4
...
13.08
0.6
...
14.00
...
–0.2
13.85
6.5
2.6
% Chg From
Friday3s Offer 1st-day
close ($) price close
Company SYMBOL
IPO date/Offer price
CBTX
CBTX Nov. 8/$26.00
Four Seasons Edu
FEDU Nov. 8/$10.00
InflaRx
IFRX Nov. 8/$15.00
Metropolitan Bank
MCB Nov. 8/$35.00
Meridian Bank
MRBK Nov. 7/$17.00
29.12
12.0
1.4
10.00
...
5.3
15.00
...
0.1
36.99
5.7
–0.6
18.25
7.4
...
Secondaries and follow-ons expected this week in the U.S. market
Symbol/
Primary Amount
exchange ($mil.)
Expected Issuer/Business
Friday’s
price ($) Bookrunner(s)
Nov. 13
Senestech
Chemicals
SENS
Nq
10.8
2.65
Roth Cptl Ptnrs
Nov. 15
MPM Holdings
Chemicals
MPMH
N
350.0
n.a.
JPM, GS
Off the Shelf
“Shelf registrations” allow a company to prepare a stock or bond for
sale, without selling the whole issue at once. Corporations sell as
conditions become favorable. Here are the shelf sales, or takedowns,
over the last week:
Issuer/Industry
Takedown date/ Deal value Registration
Registration date ($ mil.)
(mil.)
Atento
Professional Services
Nov. 9
Aug. 21,317
$110.7
$200.0
SRC Energy
Oil & Gas
Nov. 8
May 11,315
$280.0
...
Credit Suisse, JPM,
SunTrust, Citi
Taylor Morrison Home
Construction/Building
Nov. 8
March 22,317
$231.0
...
Citi, MS
Arbor Realty Trust
Real Estate/Property
Nov. 8
July 15,316
$125.0
$500.0
JPM, JMP Sec,
BofA ML
$117.0
$715.8
MS
James River Group HoldingsNov. 8
Insurance
Jan. 7,316
Bookrunner(s)
MS, Credit Suisse, Itau BBA,
RW Baird & Co,
Barrington Research, GS
Allegheny Technologies
Metal & Steel
Nov. 7
May 15,315
$408.0
...
GS
AAM
Auto/Truck
Nov. 7
March 30,317
$263.3
...
DB
OneMain Holdings
Finance
Nov. 7
Nov. 7,317
$260.0
...
MS
Voyager Therapeutics
Healthcare
Nov. 7
Dec. 1,316
$54.0
$250.0
MS, Cowen & Co
Redhill Biopharma
Healthcare
Nov. 7
Feb. 25,316
$22.5
$120.0
Cantor Fitzgerald & Co,
Nomura
Apollo Commercial Real Estate FinanceNov. 6
Real Estate/Property
May 7,315
$115.6
...
MS, BofA ML,
Citi, JPM
Chatham Lodging Trust
Real Estate/Property
Nov. 6
Jan. 4,317
$109.5
...
Barclays
KNOT Offshore Partners
Transportation
Nov. 6
May 26,317
$65.7
$943.2
BofA ML
Treasurys
Monday, November 13
Tuesday, November 14
Thursday, November 16
Auction of 10 year TIPS;
announced on November 9; settles on November 30
Public and Municipal Finance
Deals of $ 150 million or more expected this week
Sale
2017
2.343
3.059
2.600
5.240
2.840
1.984
5.532
181.1
11.00
SGH
Auction of 13 and 26 week bills;
Auction of 4 week bill;
announced on November 9; settles on November 16announced on November 13; settles on November 16
10%
5
10.50
May 23, ’17 SMART Global Hldgs
Public and Private Borrowing
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
May 17, ’17 Bright Scholar Education Hldgs BEDU
Nov. 19
5.62
Benchmark Yields and Rates
Treasury yield curve Forex Race
1.49%
Bankrate.com avg†:
56.74
Gold, $ per troy oz.
Nov. 13
Other Stock Offerings
YTD
% chg
1.56 8.58
1.20 -0.45
Crude oil, $ per barrel
Offer Offer amt Through Lockup
Symbol price($) ($ mil.) Friday (%) provision
Issuer
Sources: WSJ Market Data Group; FactSet Research Systems
9.43
2.27
TR/CC CRB Index
6.4
10.6
32.4
25.1
18.7
6.1
18.7
25.5
16.0
26500
615.94
191.65
t
–0.50
D J FMAM J J A S O N
2017
3 6 7 8 9 10
November
DJ Commodity
t
U.S. consumer rates
t
26600
Last Week
Close Net chg %Chg
Source: SIX Financial Information;WSJ Market Data Group
Five-year CD yields
26700
Commodities and
Currencies
YTD
% chg
Lockup
expiration Issue date
Performance of IPOs, most-recent listed first
26800
s
Region/Country Index
Latest Week
% chg
Below, companies whose officers and other insiders will become eligible
to sell shares in their newly public companies for the first time. Such
sales can move the stock’s price.
Company SYMBOL
IPO date/Offer price
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Lockup Expirations
IPO Scorecard
t 84.92, or -0.32%
8.7
7.7
11.4
4.2
6.3
2.7
32.9
7.2
10.7 0.03
6.3 10.0
2.2
7.4
-23.3 -16.9
43.8 26.6
-19.6 -3.8
15.0
15.7
11.0
21.0
8.1
18.1
3.3
-10.0
55.6
-20.3
Molino Canuelas SACIFIA
Flour, premixes, oil, pasta,
crackers and biscuits
producer, wholesaler and
exporter.
Sources: Dealogic; WSJ Market Data Group
last week
Philadelphia Stock Exchange
World
6660
DJ US TSM
Other Indexes
Russell 2000
1501.49
NYSE Composite
12415.96
Value Line
542.54
NYSE Arca Biotech 4206.13
NYSE Arca Pharma
539.92
KBW Bank
102.23
PHLX§ Gold/Silver
82.95
PHLX§ Oil Service
142.86
PHLX§ Semiconductor 1321.90
CBOE Volatility
12.19
Bookrunner(s)
12.00/ GS, JPM, BofA ML,
15.00 KeyBanc,
Barclays, Citi,
BMO Cptl Mkts,
Capital One Fincl,
JMP Sec
2425
19000
J
39.0
10/16 Workspace Property Trust WSPT
Real estate investment
N
trust.
65-day moving average
D
Issuer/business
11/13
22000
Week's low
N
Symbol/
Pricing
primary Shares Range($)
exchange (mil.) Low/High
35
307
11
-4
303
47
477
34
18
407
Total Return
52-wk
3-yr
-0.36 1.78
3.49 3.75
2.01 2.36
7.974 3.787
1.13 2.06
2.876 2.768
7.147 5.485
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Final
maturity Issuer
Total
($mil.)
Rating
Bookrunner/
Fitch Moody’s S&P Bond Counsel(s)
Nov. 14 Aug. 1, 2034 Washington
506.4 N.R.
N.R.
N.R. Preliminary/
K&L Gates LLP
Nov. 14 May 1, 2038 Wisconsin
277.7 N.R.
N.R.
N.R. Preliminary/
Foley & Lardner
Nov. 17 prelim.
NYC Municipal
Water Fin Auth
400.0 N.R.
N.R.
N.R. Barclays/
Orrick H & S
Nov. 17 prelim.
New Jersey
Educational
Facs Au
183.9 N.R.
N.R.
N.R. M. Stanley/—
Nov. 17 prelim.
Ohio Air
Quality Dev
Authority
210.0 N.R.
N.R.
N.R. BoA Merrill/—
Nov. 17 prelim.
South Jersey
Port
255.0 N.R.
N.R.
N.R. Citi/—
Source:Thomson Reuters/Ipreo
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.
Monday, November 13, 2017 | B9
* *
BANKING & FINANCE
SEC Watchdog Faces Complaints
BY JEAN EAGLESHAM
The allegations center on
potential time and attendance fraud by a supervisor
in the inspector general’s office and a junior subordinate.
The complainants said the
two employees regularly disappeared together for several
hours during workdays and
engaged in inappropriate
conduct in the office. Neither
of the two employees responded to requests for comment.
The SEC Office of Inspector
General referred the complaints to a federal prosecutor,
who declined to pursue the
case, according to documents
reviewed by the Journal. The
office’s own civil internal investigation of the complaints
found insufficient evidence to
conclude the two employees
had an inappropriate relationship, but noted that “the supervisor created the appearance” of such a relationship,
according to a public report
earlier this year that didn’t
name the individuals concerned.
The report said the conduct
had been addressed by management with the two individuals through remediation
plans.
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
Calamos Conv Hi Inco Fd CHY 11.78 11.66 -1.0 29.2
Calamos CHI
11.18 11.37 +1.7 33.0
World Equity Funds
Alpine Tot Dyn Div AOD 9.90 9.03 -8.8 35.4
Cdn Genl Inv CGI
32.29 23.14 -28.3 33.9
China Fund CHN
23.79 21.55 -9.4 42.4
Clough Global Opp Fd GLO 12.17 11.65 -4.3 46.4
EtnVncTxAdvGblDiv ETG 18.10 17.26 -4.6 32.7
EatonVance TxAdv Opport ETO 24.45 24.67 +0.9 32.9
First Trust Dynamic Eur FDEU 19.27 18.60 -3.5 33.3
Gabelli Glbl Multimedia GGT 9.16 8.77 -4.3 32.4
GDL Fund GDL
11.54 9.87 -14.5 10.8
India Fund IFN
31.25 27.66 -11.5 31.8
Japan Sml Cap JOF 14.74 13.22 -10.3 38.7
Korea Fund KF
49.20 43.30 -12.0 35.2
Mexico Fund MXF
17.86 15.60 -12.7 11.7
Morgan-Stanley Asia-Pac APF 20.61 17.96 -12.9 29.7
MS China a Shr Fd CAF 28.60 24.26 -15.2 34.9
MS Emerging Fund MSF 19.85 17.45 -12.1 30.4
MS India Invest IIF
39.94 35.43 -11.3 39.6
New Germany Fund GF 20.89 18.70 -10.5 49.4
Swiss Helvetia Fund SWZ 13.62 12.45 -8.6 20.9
Templeton Dragon TDF 24.82 21.91 -11.7 42.9
Templeton Emerging EMF 19.31 17.09 -11.5 48.3
Virtus Total Return Fund ZF 13.38 12.56 -6.1 28.1
Voya Infr Indls & Matls IDE 16.58 16.07 -3.1 29.2
Wells Fargo Gl Div Opp EOD
6.15 NA 30.5
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
U.S. Mortgage Bond Funds
BlackRock Income Trust BKT 6.66 6.22 -6.6 5.1
Nuveen Mtg Opp Term Fd JLS 26.64 25.72 -3.5 5.2
Investment Grade Bond Funds
Blackrock Core Bond Tr BHK 14.89 14.15 -5.0 5.5
BlkRk Credit Alloc Incm BTZ 14.85 13.28 -10.6 6.3
John Hancock Income Secs JHS 15.49 14.73 -4.9 5.4
MFS Inc Tr MIN
4.45 4.17 -6.3 9.2
WstAstClymr InfLnkd Fd WIW NA 11.23 NA 3.6
WstAssetClymr InflLnk Sec WIA NA 11.51 NA 3.3
Loan Participation Funds
Apollo Sr Fltg Rate Fd AFT 18.07 16.27 -10.0 7.4
BlkRk Debt Strat Fd DSU 12.73 11.69 -8.2 6.9
BlackRock FR Incm Strat FRA 14.98 13.99 -6.6 5.6
Blkrk FltRt InTr BGT 14.46 14.07 -2.7 5.3
BlackstoneGSO Strat Cred BGB NA 15.79 NA 8.4
Blackstone GSO Sr Float BSL NA 17.35 NA 6.7
Eagle Point Credit ECC NA 19.21 NA 8.3
Eaton Vance FR Incm Tr EFT 15.54 14.27 -8.2 5.7
EatonVnc SrFltRate EFR 15.20 14.20 -6.6 6.0
Eaton Vance Sr Incm Tr EVF 7.14 6.41 -10.2 5.6
First Trust Sr FR Fd II FCT 14.05 12.86 -8.5 6.1
FT Sr Floating Rate 2022 FIV 9.71 9.28 -4.4 NS
Invesco Credit Opps Fund VTA 13.04 11.45 -12.2 7.1
Invesco Senior Income Tr VVR 4.87 4.36 -10.5 6.0
Nuveen Credit Strt Inc Fd JQC 9.12 8.20 -10.1 7.4
NuvFloatRteInco Fd JFR 11.59 11.18 -3.5 6.9
Nuv Float Rte Opp Fd JRO 11.50 11.00 -4.3 7.3
Nuveen Senior Income Fund NSL 6.87 6.56 -4.5 6.9
Pioneer Floating Rate Tr PHD 12.47 11.61 -6.9 6.0
Voya Prime Rate Trust PPR 5.65 5.01 -11.3 6.0
High Yield Bond Funds
AllianceBernstein Glbl AWF 13.84 12.51 -9.6 6.7
Barings Glbl Short Dur HY BGH 21.08 20.07 -4.8 8.9
BlackRock Corp Hi Yd Fd HYT 12.21 11.01 -9.8 7.9
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
BlackRockDurInco Tr BLW 17.04 15.95 -6.4 7.8
Brookfield Real Assets RA 25.28 23.87 -5.6 NS
Credit Suisse High Yld DHY 2.79 2.82 +1.1 9.4
DoubleLine Incm Solutions DSL NA 20.58 NA 8.6
Dreyfus Hi Yd Strat Fd DHF 3.52 3.38 -4.0 8.8
Fst Tr Hi Inc Lg/Shrt Fd FSD 17.94 16.45 -8.3 8.3
Guggenheim Strat Opps Fd GOF 19.81 21.50 +8.5 10.2
Ivy High Income Opps Fund IVH 15.98 14.94 -6.5 9.4
Neuberger Berman HYS NHS 13.23 11.75 -11.2 7.4
NexPoint Credit Strat Fd NHF 25.20 23.60 -6.3 10.1
Nuveen Credit Opps 2022 JCO 9.93 9.98 +0.6 NS
Nuveen Gl Hi Incm Fd JGH 18.54 16.68 -10.0 8.2
Nuveen High Incm Dec18 JHA 10.08 9.95 -1.3 5.2
Nuveen High Incm Dec19 JHD 10.25 10.08 -1.7 5.8
Nuveen Hi Incm Nov 2021 JHB 10.11 10.02 -0.9 5.9
Pioneer High Income Trust PHT 10.79 9.86 -8.6 8.2
Prud Gl Shrt Dur Hi Yd GHY 16.40 14.59 -11.0 7.8
Prudentl Sh Dur Hi Yd Fd ISD 16.59 14.96 -9.8 7.7
Wells Fargo Incm Opps Fd EAD NA 8.50 NA 8.7
Wstrn Asset Glbl Hi Inco EHI NA 9.99 NA 8.7
Wstrn Asset High Inco II HIX NA 6.97 NA 8.7
Wstrn Asset Opp Fd HIO NA 4.98 NA 7.2
West Asst HY Def Opp Fd HYI NA 15.17 NA 7.8
Other Domestic Taxable Bond Funds
Apollo Tactical Incm Fd AIF 17.51 15.86 -9.4 8.8
Ares Dynamic Credit Alloc ARDC NA 16.29 NA 6.9
Barings Corp Investors MCI NA 15.65 NA 3.7
BlackRock Multi-Sector IT BIT 19.97 18.36 -8.1 9.5
BlackRock Taxable Mun Bd BBN 23.89 23.07 -3.4 6.8
Doubleline Oppor Credit DBL NA 22.56 NA 8.7
Duff & Phelps Utl & Cp Bd DUC 9.72 9.06 -6.8 6.5
EtnVncLtdFd EVV
15.01 13.74 -8.5 7.1
Franklin Ltd Duration IT FTF NA 11.86 NA 11.4
GuggenheimTaxableMuni GBAB 23.34 22.51 -3.6 6.8
Invesco High Incm 2023 IHIT 10.09 10.10 0.0 NS
John Hancock Investors JHI 18.58 17.69 -4.8 7.2
KKR Income Opps Fund KIO NA 16.19 NA 9.4
MFS Charter MCR
9.28 8.53 -8.1 8.7
MFS Multimkt MMT 6.63 6.11 -7.8 8.7
Nuveen Build Am Bd Fd NBB 22.21 21.56 -2.9 5.7
PIMCO Corporate & Incm PTY NA 16.81 NA 10.3
PIMCO Corporate & Incm PCN NA 16.96 NA 10.4
PIMCO HiInco PHK
NA 7.66 NA 13.1
PIMCO Inco Str Fd PFL NA 11.87 NA 8.9
PIMCO Incm Strategy Fd II PFN NA 10.56 NA 8.9
Putnam Mas Inco PIM 5.02 4.69 -6.6 6.5
Putnam Premier Income Tr PPT 5.57 5.24 -5.9 5.8
Wells Fargo Multi-Sector ERC NA 13.05 NA 9.4
World Income Funds
Abeerden Asia-Pacific FAX 5.43 4.98 -8.3 8.3
Etn Vnc Short Dur Fd EVG NA 14.02 NA 6.9
Legg Mason BW Glbl Incm BWG NA 13.00 NA 8.3
MS EmMktDomDebt EDD 8.70 7.66 -12.0 8.4
PIMCO Dynamic Credit PCI NA 22.35 NA 11.4
PIMCODynamicIncomeFund PDI NA 30.27 NA 13.5
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
PIMCO Income Opportunity PKO NA 26.02 NA 9.9
PIMCO Strat Income Fund RCS NA 8.95 NA 9.7
Templeton Emerging TEI 12.94 11.48 -11.3 4.5
Templeton Global GIM 7.42 6.58 -11.3 6.1
Wstrn Asset Emerg Mkts EMD NA 15.36 NA 7.5
Wstrn Asset Gl Def Opp Fd GDO NA 18.04 NA 7.5
National Muni Bond Funds
AllianceBrnstn NtlMun AFB 14.96 13.55 -9.4 4.6
Blackrock Invest BKN 16.08 14.68 -8.7 5.3
BlackRockMun2030Target BTT 24.38 22.49 -7.8 4.1
BlackRock Municipal Trust BFK 14.58 14.17 -2.8 5.7
BlackRockMuni BLE 15.13 14.63 -3.3 6.1
BlackRockMuni Tr BYM 15.33 14.31 -6.7 5.3
BlkRk MuniAssets Fd MUA 14.23 15.02 +5.6 4.6
BlkRk Munienhanced MEN 12.05 11.95 -0.8 5.7
BlkRk MuniHldgs Inv MFL 14.84 15.13 +2.0 5.7
BlkRk MuniHldgs Qlty II MUE 14.16 13.71 -3.2 5.6
BlkRk MuniVest MVF 9.72 9.75 +0.3 5.8
BlkRk MuniVest II MVT 15.37 15.60 +1.5 5.9
BlkRk MuniYield MYD 14.99 14.32 -4.5 6.0
BlkRk MuniYld Quality MQY 15.98 15.51 -2.9 5.6
BlkRk MuniYld Qlty II MQT 14.03 13.02 -7.2 5.6
BlRkMunyldQltyIII MYI 14.60 14.13 -3.2 5.8
Deutsche Mun Income Tr KTF 12.68 11.87 -6.4 6.6
Dreyfus Mun Bd Infr Fd DMB 14.28 12.98 -9.1 4.9
Dreyfus Strat Muni Bond DSM 8.40 8.43 +0.4 5.9
Dreyfus Strategic Munis LEO 8.62 8.78 +1.9 5.9
Eaton Vance Mun Bd Fd EIM 13.74 12.55 -8.7 5.0
Eaton Vance Mun Income EVN 13.40 12.39 -7.5 5.4
EV National Municipal Opp EOT 22.01 22.01 0.0 4.7
Invesco Adv Mun Incm II VKI 12.21 11.37 -6.9 5.8
Invesco Mun Incm Opps Tr OIA 7.62 7.82 +2.6 5.2
Invesco Mun Opportunity VMO 13.58 12.41 -8.6 6.1
Invesco Municipal Trust VKQ 13.57 12.34 -9.1 5.9
Invesco Qlty Mun Inco IQI 13.70 12.41 -9.4 5.5
Invesco Inv Grade Muni VGM 14.07 13.02 -7.5 5.8
Invesco Value Mun Incm Tr IIM 16.35 14.73 -9.9 5.0
MainStay DefinedTerm MMD 20.17 19.21 -4.8 5.6
MFS Munl Inco MFM 7.40 6.87 -7.2 5.5
Nuveen AMT-Free Quality NEA 15.25 13.80 -9.5 5.4
Nuveen AMT-Free Mun NVG 16.62 15.36 -7.6 5.7
Nuveen Mun Credit Incm Fd NZF 16.23 15.14 -6.7 5.9
Nuveen Enhncd Mun Val Fd NEV 15.16 14.38 -5.1 5.7
Nuveen Intermed Dur Mun NID 13.85 12.99 -6.2 4.9
NuveenMuniIncoOpp Fd NMZ 13.66 13.64 -0.1 6.0
Nuveen Muni Value Fund NUV 10.39 10.18 -2.0 3.8
Nuveen Qual Mun Incm Fd NAD 15.60 14.02 -10.1 5.6
Nuveen Sel Tax Free NXP 15.55 14.75 -5.1 3.7
Nuveen Sel TF NXQ 14.94 14.06 -5.9 3.6
PIMCO MuniFd PMF
NA 13.11 NA 5.9
Pimco Muni Inc II PML NA 13.22 NA 5.9
PIMCO Muni Inc III PMX NA 11.76 NA 5.9
Pioneer Mun Hi Inc Adv Tr MAV 11.94 11.40 -4.5 5.3
Pioneer Mun Hi Incm Tr MHI 12.82 11.71 -8.7 5.1
The Office of Special Counsel,
whose mission is to protect
federal whistleblowers, is
investigating the allegations from
at least two employees working
for SEC Inspector General Carl
Hoecker , according to people
familiar with the matter.
The office has the power to
prosecute cases before an
independent board, which can
order agencies to pay
compensation to harmed
employees. A spokeswoman for
SECURITIES AND EXCHANGE COMMISSION
The watchdog for the Securities and Exchange Commission, who encourages
staff at the top securities
regulator to blow the whistle
on misconduct and fraud, is
himself the subject of complaints by several whistleblowers.
Carl Hoecker, the SEC inspector general, is tasked with
rooting out malpractice at the
agency. His team investigates
alleged misconduct by SEC officials, ranging from insider
trading to expenses fraud. The
office’s website highlights protections for SEC employees
who disclose evidence of
waste, fraud or abuse.
At least two employees
working for Mr. Hoecker have
filed complaints to a different
federal whistleblower-protection agency, alleging that he
and his senior staff retaliated
against them for calling out
misconduct within the inspector general’s office, according
to people familiar with the
matter and documents reviewed by The Wall Street
Journal.
Raphael Kozolchyk, a
spokesman for the SEC Office of Inspector General,
said “a number of the claims
contain significant factual inaccuracies, while others are
grossly misleading.” He
added that the office
does “not comment on ongoing personnel matters.” Mr.
Hoecker didn’t respond to a
The whistleblowers’ concerns focus on how Mr. Hoecker handled their complaints.
Inspectors general are meant
to encourage whistleblowing.
The whistleblowers allege they
instead suffered retaliation
and that the internal investigation wasn’t sufficiently independent to be fair.
The SEC Office of Inspector
General internal probe was
initially jointly led by two senior officials in the office, including a senior investigator
who hired and supervised the
two employees at the center of
the complaints, the people familiar with the matter said.
The investigator helped interview the complainants and refer the issue to prosecutors,
according to documents obtained under public-records
requests.
Mr. Hoecker also appointed
one of the two employees under investigation to help coordinate a review of procedures
in the inspector general’s office, according to documents
reviewed by the Journal. The
review, overseen by the inspector general, removed language designed to prevent
conflicts of interest affecting
internal investigations, such as
allegedly happened in this
case, according to the documents.
The complaints additionally
allege that Mr. Hoecker, whose
office is by law independent
from the SEC, regularly refers
to the commissioners who run
the agency as his “bosses.”
Counsel’s Agency
Probes Allegations
the office declined to comment.
Mr. Hoecker, 60 years old,
was appointed as the SEC
watchdog in 2013. He also serves
as chairman of the investigations
committee of the Council of the
Inspectors General on Integrity
and Efficiency, which represents
more than 70 inspectors general
across the federal government.
The council earlier this year
said it had reviewed the
whistleblowers’ allegations of
retaliation by Mr. Hoecker and
decided not to take any action,
according to documents seen by
The Wall Street Journal. A
spokesman for the council
declined to comment.
Inspector General Carl Hoecker
request for comment.
The whistleblowers also reported the allegations to Sen.
Chuck Grassley (R., Iowa),
chairman of the bipartisan
Senate Whistleblower Protection Caucus, which focuses on
laws and other issues affecting
whistleblowers. A spokesman
for Mr. Grassley said he is
“looking into the matter, and
his office intends to reach out
to the whistleblowers in question to see what can and
should be done.”
The whistleblower-retaliation allegations stem from
complaints made to Mr.
Hoecker last year by at least
three officials in his office.
The complaints allege misconduct by two of their fellow
employees, the people familiar
with the matter said.
The allegations
center on potential
time and attendance
fraud.
Bonuses
For Bankers
On Upswing
BY TELIS DEMOS
Banker bonuses may follow stock prices higher this
year.
For the first time in four
years, year-end bonuses for
bankers in 2017 are set to
grow over the prior year, according to consulting firm
Johnson Associates Inc.
Overall, incentive pay is expected to rise 5% to 10%,
Johnson’s survey found.
While bankers still tend to
outearn the average American by many times, their bonuses have been under pressure since the financial
crisis, thanks both to new
compensation guidelines by
regulators
and
banks’
broader drop in profitability.
The jump this year in part
reflects how banks are trying
to evolve. In addition to
slashing costs like pay, they
are also aiming to get bigger
in the steadier, more traditional parts of the business,
like advising on mergers and
arranging loans to people
and businesses. Bankers who
work in those units are expected to see the biggest
jumps in bonuses. Bankers
who work on companies’
debt and stock offerings are
likely to get 15% to 20% more
in incentive pay, Johnson’s
survey found. Commercial
and retail bankers will be up
5% to 10%.
Closed-End Funds | WSJ.com/funds
Listed are the 300 largest closed-end funds as
measured by assets.
Closed-end funds sell a limited number of shares and
invest the proceeds in securities. Unlike open-end
funds, closed-ends generally do not buy their shares
back from investors who wish to cash in their holdings.
Instead, fund shares trade on a stock exchange.
a-The NAV and market price are ex dividend. b-The
NAV is fully diluted. c-NAV is as of Thursday’s close. dNAV is as of Wednesday’s close. e-NAV assumes rights
offering is fully subscribed. f-Rights offering in process.
g-Rights offering announced. h-Lipper data has been
adjusted for rights offering. j-Rights offering has
expired, but Lipper data not yet adjusted. l-NAV as of
previous day. o-Tender offer in process. v-NAV is
converted at the commercial Rand rate. w-Convertible
Note-NAV (not market) conversion value. y-NAV and
market price are in Canadian dollars. NA signifies that
the information is not available or not applicable. NS
signifies fund not in existence of entire period.
12 month yield is computed by dividing income
dividends paid (during the previous twelve months for
periods ending at month-end or during the previous
fifty-two weeks for periods ending at any time other
than month-end) by the latest month-end market price
adjusted for capital gains distributions.
Source: Lipper
Friday, November 10, 2017
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
General Equity Funds
Adams Divers Equity Fd ADX 18.20 15.73 -13.6 30.3
Boulder Growth & Income BIF 12.30 10.52 -14.5 29.2
Central Securities CET 32.07 26.59 -17.1 31.8
CohSteer Opprtnty Fd FOF 13.72 13.13 -4.3 24.3
Cornerstone Strategic CLM 13.54 15.11 +11.6 21.5
EtnVnc TaxAdvDiv EVT 23.03 22.52 -2.2 23.6
Gabelli Dividend & Incm GDV 23.87 22.32 -6.5 23.7
Gabelli Equity Trust GAB 6.38 6.01 -5.8 24.8
Genl American Investors GAM 39.30 NA NA NA
Guggenheim Enh Fd GPM 8.84 8.46 -4.3 25.9
HnckJohn TxAdv HTD 25.93 25.53 -1.5 27.9
Liberty All-Star Equity USA 6.78 6.15 -9.3 33.1
Royce Micro-Cap RMT 10.27 9.09 -11.5 26.3
Royce Value Trust RVT 17.41 15.79 -9.3 34.6
Source Capital SOR 44.94 40.26 -10.4 16.1
Tri-Continental TY
29.16 26.06 -10.6 28.4
Specialized Equity Funds
Adams Natural Rscs Fd PEO 23.23 19.92 -14.3 9.3
AllnzGI NFJ Div Interest NFJ 14.60 13.19 -9.7 15.9
AlpnGlblPrProp AWP 7.23 6.29 -13.0 37.1
ASA Gold & Prec Metals ASA 12.74 11.20 -12.1 -3.2
BlkRk Enh Cap Inco CII 16.69 15.71 -5.9 28.8
BlkRk Engy Res Tr BGR 15.50 14.08 -9.2 10.3
BlackRock Enh Eq Div Tr BDJ 9.75 9.05 -7.2 23.9
BlackRock Enh Gl Div Tr BOE 14.30 13.39 -6.4 24.7
BlkRk Intl Grwth&Inco BGY 6.99 6.57 -6.0 29.1
BlkRk Health Sci BME 35.44 35.83 +1.1 9.1
BlackRck Rscs Comm Str Tr BCX 10.28 8.95 -12.9 21.2
BlackRock Science & Tech BST 28.11 26.26 -6.6 52.9
BlackRock Utility & Infr BUI 21.44 21.03 -1.9 25.6
CBREClarionGlblRlEstIncm IGR 8.94 7.91 -11.5 18.4
Central Fund of Canada CEF 13.59 13.24 -2.6 4.9
ClearBridge Amer Engy CBA
7.85 NA -0.5
ClearBridge Engy MLP Fd CEM
13.26 NA -3.7
Clearbridge Engy MLP Opp EMO
10.93 NA -8.3
Clearbridge Engy MLP TR CTR
11.71 NA 2.5
Cohen & Steers Infr Fd UTF 25.81 23.40 -9.3 30.8
C&S MLP Incm & Engy Opp MIE 10.49 9.70 -7.5 5.7
Cohen & Steers Qual Inc RQI 13.87 12.78 -7.9 18.5
CohnStrsPfdInco RNP 23.14 21.18 -8.5 24.9
Cohen & Steers TR RFI 13.64 12.63 -7.4 15.5
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
CLSeligmn Prem Tech Gr Fd STK 22.46 23.16 +3.1 44.9
Duff & Phelps DNP
9.98 11.34 +13.6 22.7
Duff&PhelpsGblUtilIncFd DPG 17.78 16.05 -9.7 19.1
Eaton Vance Eqty Inco Fd EOI 14.68 14.23 -3.1 28.6
Eaton Vance Eqty Inco II EOS 15.42 14.90 -3.4 22.3
EtnVncRskMngd ETJ 9.99 9.19 -8.0 15.5
Etn Vnc Tax Mgd Buy-Write ETB 16.24 16.59 +2.2 9.97
Eaton Vance BuyWrite Opp ETV 14.90 15.10 +1.3 12.7
Eaton Vance Tax-Mng Div ETY 12.08 11.78 -2.5 26.3
EatonVanceTax-MngdOpp ETW 11.49 11.82 +2.9 24.3
EtnVncTxMngGlDvEqInc EXG 9.35 9.32 -0.3 27.4
Fiduciary/Clymr Opp Fd FMO 12.23 11.97 -2.1 -12.6
FT Energy Inc & Growth Fd FEN 22.91 22.62 -1.3 0.3
FstTrEnhEqtIncFd FFA 16.38 15.41 -5.9 25.8
First Tr Engy Infr Fd FIF 18.78 18.08 -3.7 13.0
First Tr MLP & Engy Incm FEI 14.25 14.28 +0.2 1.5
Gabelli Hlthcr & Well GRX 11.01 9.58 -13.0 6.0
Gabelli Utility Tr GUT 5.49 7.05 +28.4 21.5
GAMCOGlblGoldNatRscs&Inc GGN 5.41 5.45 +0.7 13.9
GoldmanSachsMLPIncOpp GMZ
8.60 NA 2.9
Goldman Sachs MLPEnergy GER
6.10 NA -3.6
John Hancock Finl Opps Fd BTO 34.95 34.70 -0.7 15.1
Macquarie Glbl Infrstrctr MGU 28.29 24.85 -12.2 40.1
NeubergerBermanMLPIncm NML 9.59 8.70 -9.3 5.5
Neubrgr Brm Rl Est Sec Fd NRO 5.87 5.54 -5.6 18.8
Nuveen Dow 30 Dynamic DIAX 18.46 17.59 -4.7 30.9
Nuveen Core Eq Alpha JCE 16.15 15.57 -3.6 27.9
Nuveen Diversified Div JDD 13.02 12.53 -3.8 24.5
Nuveen Engy MLP Fd JMF 11.05 10.73 -2.9 -8.1
NuvNASDAQ100DynOver QQQX 22.96 23.88 +4.0 39.4
Nuveen Real Est Incm Fd JRS 11.57 11.16 -3.5 21.9
NuvS&P500DynOverwrite SPXX
15.93 NA 25.2
NuveenS&P500Buy-Write BXMX 14.33 14.06 -1.9 18.6
Reaves Utility Fund UTG 33.30 31.10 -6.6 17.4
Tekla Hlthcr Investors HQH 24.04 23.08 -4.0 4.1
Tekla Healthcare Opps Fd THQ 18.94 17.41 -8.1 13.8
Tekla Life Sciences HQL 19.96 19.74 -1.1 14.9
Tekla World Hlthcr Fd THW 14.41 13.64 -5.3 6.0
Tortoise Energy TYG
26.62 NA -3.9
Tortoise MLP Fund NTG
16.92 NA -3.8
Voya Gl Equity Div IGD 8.14 7.87 -3.3 26.6
Income Preferred Stock Funds
Calamos Strat Fd CSQ 12.63 12.14 -3.9 33.4
Cohen & Steers Dur Pfd LDP 27.43 26.47 -3.5 22.3
Cohen & Strs Sel Prf Inco PSF 27.99 28.26 +1.0 22.3
FT Interm Duration Pfd FPF 24.99 24.59 -1.6 25.3
Flaherty & Crumrine Dyn DFP 26.33 26.14 -0.7 24.4
Flaherty & Crumrine Pfd FFC 20.35 20.81 +2.3 16.2
John Hancock Pfd Income HPI 21.13 21.53 +1.9 19.2
John Hancock Pfd II HPF 20.88 21.36 +2.3 18.3
John Hancock Pfd Inc III HPS 18.64 18.25 -2.1 18.3
JHancock Pr Div PDT 15.72 16.86 +7.3 37.4
LMP Cap & Inco Fd SCD
13.91 NA 20.9
Nuveen Pfd & Incm Opps Fd JPC 10.77 10.48 -2.7 24.4
Nuveen Pfd & Incm Secs Fd JPS 10.40 10.33 -0.7 27.1
Nuveen Preferred & Incm JPI 25.97 25.25 -2.8 19.1
TCW Strategic Income Fund TSI
5.56 NA 12.3
Virtus Global Dividend ZTR 12.83 13.38 +4.3 38.6
Convertible Sec's. Funds
AdvntClymrFd AVK 17.50 15.83 -9.5 26.0
AllianzGI Conv & Incm NCV 6.56 6.97 +6.3 30.8
AllianzGI Conv & Incm II NCZ 5.89 6.17 +4.8 30.2
AllianzGI Div Incm ACV 22.47 21.97 -2.2 37.8
AllianzGI Equity & Conv NIE 22.95 20.67 -9.9 23.4
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
November 10, 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
U.S. consumer price index
246.819
252.941
All items
Core
0.53
0.19
2.2
1.7
International rates
Latest
Week
ago
Treasury bill auction
1.035 1.020 1.300 0.270
1.185 1.130 1.185 0.420
1.300 1.260 1.300 0.535
4 weeks
13 weeks
26 weeks
Secondary market
Fannie Mae
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
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
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
Other short-term rates
1.15
1.21
1.38
0.15
Discount
1.75
1.75
1.75
1.00
1.1800
1.3125
1.0500
1.1600
1.1800
1.2000
1.3125
1.1600
1.1700
1.1900
0.3500
0.5625
0.2500
0.3000
0.3200
Federal funds
Effective rate
High
Low
Bid
Offer
1.1800
1.3125
1.0000
1.1600
1.1800
Six month
One year
—52-WEEK—
High Low
1.61461 1.59017 1.61461 1.26211
1.88150 1.86289 1.88178 1.58789
Euro Libor
One month
Three month
Six month
One year
-0.399
-0.378
-0.314
-0.247
-0.400
-0.378
-0.316
-0.234
-0.376
-0.325
-0.214
-0.075
-0.405
-0.381
-0.322
-0.247
One month
Three month
Six month
One year
52-Week
high
low
-0.371
-0.329
-0.275
-0.191
Latest
-0.372
-0.329
-0.276
-0.191
Value
Traded
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.276
-0.191
52-Week
High
Low
DTCC GCF Repo Index
3.00
3.00
3.00
2.25
Treasury
MBS
1.32
1.31
1.32
0.62
Libor
1.24606 1.24322 1.24606 0.53817
1.41289 1.39194 1.41289 0.90567
1.200 38.700 1.366 0.244
1.213 103.502 1.506 0.257
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
U.S. government rates
Week
ago
Call money
90 days
Overnight repurchase
U.S.
3.481 3.462 3.865 3.253
3.500 3.483 3.899 3.281
Latest
Week
Latest ago
Euro interbank offered rate (Euribor)
30-year mortgage yields
Policy Rates
Euro zone
Switzerland
Britain
Australia
—52-WEEK—
High Low
DTCC GCF Repo Index Futures
Treasury Nov
Treasury Dec
Treasury Jan
98.830 unch. 8834 1.170
98.690 0.005 2043 1.310
98.585 -0.010 450 1.415
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.
A Week in the Life of the DJIA
A look at how the Dow Jones Industrial Average component stocks
did in the past week and how much each moved the index. The DJIA
lost 116.98 points, or 0.50%, on the week. A $1 change in the price of
any DJIA stock = 6.89-point change in the average. To date, a $1,000
investment on Dec. 31 in each current DJIA stock component would
have returned $35,716, or a gain of 19.05%, on the $30,000
investment, including reinvested dividends.
The Week’s Action
Pct Stock price Point chg
chg (%) change in average* Company
Symbol Close
$1,000 Invested(year-end '16)
$1,000
6.22
1.90
1.82
1.74
1.67
6.14
2.19
1.58
0.35
2.22
42.28
15.08
10.88
2.41
15.29
Walt Disney
Chevron
Procter & Gamble
General Electric
Travelers
DIS $104.78
CVX 117.18
PG
88.16
GE
20.49
TRV 135.54
$1,013
1,026
1,081
666
1,127
1.38
1.26
1.24
0.68
0.47
1.24
2.17
0.57
0.38
0.52
8.54
14.94
3.92
2.62
3.58
Wal-Mart Stores
Apple
Coca-Cola
Nike
Visa
WMT 90.92
AAPL 174.67
KO
46.54
NKE 56.09
V 111.88
1,342
1,532
1,151
1,115
1,442
–0.11
–0.17
–0.29
–0.32
–0.34
–0.15
–0.28
–0.24
–0.27
–0.90
–1.03
–1.93
–1.65
–1.86
–6.20
Caterpillar
Home Depot
Exxon Mobil
Microsoft
Boeing
CAT 136.48
HD 164.11
XOM 82.94
MSFT 83.87
BA 260.85
1,516
1,246
954
1,373
1,723
–0.37
–0.85
–1.03
–1.04
–1.39
–0.52
–1.80
–0.58
–0.37
–0.48
–3.58
–12.39
–3.99
–2.55
–3.31
Johnson & Johnson JNJ 139.56
UnitedHealth Group UNH 211.07
Merck
MRK 55.48
Pfizer
PFE 35.18
Cisco Systems
CSCO 33.99
1,235
1,334
963
1,126
1,165
–1.60
–1.64
–1.67
–1.74
–1.81
–2.42
–0.76
–1.19
–4.25
–3.06
–16.66
–5.23
–8.19
–29.26
–21.07
IBM
Intel
DowDuPont
Goldman Sachs
McDonald’s
IBM 149.16
INTC 45.58
DWDP 69.97
GS 240.15
MCD 165.59
934
1,292
1,249
1,012
1,387
–2.05
–2.44
–3.02
–3.85
–5.36
–4.77
–2.96
–2.91
–3.90
–2.54
–32.84
–20.38
–20.04
–26.85
–17.49
3M
MMM 227.45
United Technologies UTX 118.11
American Express AXP 93.52
J.P. Morgan Chase JPM 97.51
Verizon
VZ
44.88
1,297
1,096
1,283
1,156
882
*Based on Composite price. DJIA is calculated on primary-market price.
Source: WSJ Market Data Group; FactSet.
Fund (SYM)
Prem12 Mo
NAV Close /Disc Yld
Putnam Tr PMM
8.00 7.49
PutnamMuniOpportunities PMO 13.39 12.57
Wstrn Asset Mngd Muni MMU NA 14.02
WesternAssetMunTrFund MTT NA 21.59
Single State Muni Bond
BlackRock CA Municipal Tr BFZ 15.38 14.40
BlkRk MuniHldgs CA Qlty MUC 15.61 14.84
Blkrck MunHl NJ Qlty MUJ 15.78 14.27
BlRk MuHldg NY Qlty MHN 14.96 13.69
BlkRk MuniYld CA Fd MYC 15.70 15.21
BlkRk MuniYld CA Quality MCA 15.84 14.94
BlkRk MuniYld MI Qlty MIY 15.57 13.98
BlRk Muyld NY Qlty MYN 14.33 12.95
Eaton Vance CA Mun Bd EVM 12.40 11.79
Invesco CA Value Mun Incm VCV 13.48 12.88
Invesco PA Value Mun Incm VPV 14.10 12.05
Invesco Inv Grade NY Muni VTN 14.63 13.64
Nuveen CA AMT-Free Qual NKX 15.88 15.60
Nuveen CA Muni Value NCA 10.50 10.53
Nuveen CA Quality Muni NAC 15.76 14.63
Nuveen MD Qual Muni NMY 14.62 12.70
Nuveen MI Qual Muni NUM 15.46 13.41
Nuveen NJ Qual Muni NXJ 15.92 13.71
Nuveen NY AMT-Free NRK 14.51 12.96
Nuveen NY Qual Muni NAN 15.14 13.94
Nuveen OH Qual Muni NUO 16.74 14.95
Nuveen PA Qual Muni NQP 15.30 13.56
Nuveen VA Qual Muni NPV 14.50 13.09
PIMCO California Muni PCQ NA 17.22
PIMCO California Mun II PCK NA 10.04
-6.4
-6.1
NA
NA
5.4
5.2
5.4
4.9
-6.4 5.1
-4.9 5.0
-9.6 5.6
-8.5 5.0
-3.1 5.1
-5.7 5.1
-10.2 5.5
-9.6 5.0
-4.9 4.9
-4.5 5.0
-14.5 5.1
-6.8 5.0
-1.8 5.0
+0.3 3.9
-7.2 5.5
-13.1 5.0
-13.3 4.8
-13.9 5.2
-10.7 4.9
-7.9 5.1
-10.7 4.7
-11.4 5.2
-9.7 4.3
NA 5.3
NA 5.6
52 wk
Prem Ttl
Fund (SYM)
NAV Close /Disc Ret
General Equity Funds
Specialized Equity Funds
Griffin Inst Access RE:A 26.96 NA NA 7.5
Griffin Inst Access RE:C 26.53 NA NA 6.7
Griffin Inst Access RE:I 27.12 NA NA 7.7
Griffin Inst Access RE:L 26.95 NA NA NS
Griffin Inst Access RE:M 26.83 NA NA NS
NexPointRlEstStrat;A 20.46 NA NA 8.3
NexPointRlEstStrat;C 20.41 NA NA 7.5
NexPointRlEstStrat;Z 20.41 NA NA 8.7
Resource RE Div Inc:A 10.05 NA NA 6.7
Resource RE Div Inc:C 10.03 NA NA 5.8
Resource RE Div Inc:D 10.20 NA NA 6.1
Resource RE Div Inc:I 10.47 NA NA 6.6
Resource RE Div Inc:L 10.04 NA NA NS
Resource RE Div Inc:T 10.02 NA NA 5.9
Resource RE Div Inc:U 10.05 NA NA 6.6
Resource RE Div Inc:W 10.20 NA NA 6.5
SharesPost 100
26.32 NA NA -2.5
Tot Inc+ RE:A
29.49 NA NA 6.9
Tot Inc+ RE:C
28.72 NA NA 6.1
Tot Inc+ RE:I
29.82 NA NA 7.2
Tot Inc+ RE:L
29.45 NA NA NS
USQ Core Real Estate:I USQIX 25.21 NA NA NS
USQ Core Real Estate:IS USQSX 25.21 NA NA NS
Versus Cap MMgr RE Inc:F 27.56 NA NA 6.5
Versus Cap MMgr RE Inc:I 27.63 NA NA 6.8
Versus Capital Real Asst VCRRX 25.07 NA NA NS
Wildermuth Endwmnt Str 12.78 NA NA 13.3
Wildermuth Endwmnt S:C 12.61 NA NA 12.4
Wildermuth Endwmnt S:I 12.84 NA NA NS
Income Preferred Stock Funds
MultiStrat Gro & Inc:A 15.30 NA NA 5.3
MultiStrat Gro & Inc:C 14.98 NA NA 4.6
MultiStrat Gro & Inc:I 15.50 NA NA 5.6
MultiStrat Gro & Inc:L 15.09 NA NA 4.9
The Relative Value:CIA VFLEX 25.38 NA NA NS
Convertible Sec's. Funds
Calmos Dyn Conv and Inc CCD 20.75 20.27 -2.3 18.6
World Equity Funds
BMO LGM Front ME 10.26 NA NA 14.2
CalamosGlbTotRet CGO 13.31 14.06 +5.6 24.9
Prem12 Mo
Fund (SYM)
NAV Close /Disc Yld
U.S. Mortgage Bond Funds
Vertical Capital Income 12.61 NA NA 3.2
Loan Participation Funds
504 Fund
9.78 NA NA 3.7
FedProj&TrFinanceTender 10.06 NA NA NS
Highland Flt Rt Opp 14.96 NA NA 4.3
Invesco Sr Loan A
6.65 NA NA 4.2
Invesco Sr Loan B
6.65 NA NA 4.2
Invesco Sr Loan C
6.66 NA NA 3.5
Invesco Sr Loan IB
6.65 NA NA 4.4
Invesco Sr Loan IC
6.65 NA NA 4.3
Invesco Sr Loan Y
6.65 NA NA 4.4
RiverNorth MP Lending RMPLX NA NA NA 6.6
Sierra Total Return:T SRNTX 25.14 NA NA NS
Voya Senior Income:A 12.54 NA NA 5.3
Voya Senior Income:C 12.51 NA NA 4.8
Voya Senior Income:I 12.50 NA NA 5.6
Voya Senior Income:W 12.54 NA NA 5.6
High Yield Bond Funds
Griffin Inst Access Cd:A NA NA NA NS
Griffin Inst Access Cd:C NA NA NA NS
Griffin Inst Access Cd:F NA NA NA NS
Griffin Inst Access Cd:I NA NA NA NS
Griffin Inst Access Cd:L NA NA NA NS
PIMCO Flexible Cr I;Inst NA NA NA NS
PionrILSInterval
9.65 NA NA 10.5
WA Middle Mkt Dbt
NA NA NA 11.2
WA Middle Mkt Inc WMF NA NA NA 11.2
Other Domestic Taxable Bond Funds
Capstone Church Capital 11.43 NA NA 1.5
CION Ares Dvsfd Crdt;A NA NA NA NS
CION Ares Dvsfd Crdt;C NA NA NA NS
CION Ares Dvsfd Crdt;I NA NA NA NS
CNR Select Strategies 7.87 NA NA NS
GL Beyond Income
3.68 NA NA NE
Palmer Square Opp Income NA NA NA 5.0
Resource Credit Inc:A
NA NA NA 6.4
Resource Credit Inc:C
NA NA NA 5.7
Resource Credit Inc:I
NA NA NA 6.7
Resource Credit Inc:L
NA NA NA NS
Resource Credit Inc:W NA NA NA 6.3
B10 | Monday, November 13, 2017
THE WALL STREET JOURNAL.
* *
MARKETS
3.2%
The gain for real-estate stocks in the S&P
500 last week, the biggest advance for the
sector since September.
Real-state stocks had
themselves quite a week.
With a 3.2% gain, they were
the best performers among the
11 sectors in the S&P 500 last
week. It was the biggest weekly
gain for real-estate stocks since
September.
The sector’s recent run is
MONEYBEAT
more impressive considering that
all the gains accrued in the first
three sessions of last week, its
best three-day stretch in nearly
a year.
Of particular note to
investors: Real estate logged
those big gains despite a rise in
Treasury yields. Dividend-paying
real estate investment trusts,
the bulk of the group, tend to be
at odds with interest rates, since
owning them becomes less
attractive when the return on
safer assets increases.
The threat of rising rates has
hindered REITs all year, since
investors expect the Federal
Reserve to boost its key
borrowing rate in December and
at least twice more in 2018. The
S&P 500’s real-estate sector is up
9.6% so far in 2017, excluding
dividends, well behind the 15%
advance for the broader S&P 500.
Last week showed that
fundamental factors are critical,
too. Mall REIT Macerich Co. shot
up 18% on expectations of
activism or a potential deal.
Three cell-tower operators were
winners after Sprint Corp. called
off its pursuit of T-Mobile US
Inc. SBA Communications Corp.,
American Tower Corp. and
Crown Castle International
Corp. jumped between 6% and
9% last week since the deal’s
breakup means greater
competition among wireless
carriers and will likely boost
demand for wireless
infrastructure.
Frank Cappelleri, a technical
analyst at Nomura Instinet, said
higher interest rates are still a
threat to real estate. But after
last week, “the breakout is clear,“
he wrote, ”and we shouldn’t
shrug it off.” —Chris Dieterich
ONLINE
WSJ
.COM
For more
MoneyBeat blog
posts, go to
blogs.wsj.com/
MoneyBeat
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
Country/currency
US$vs,
YTDchg
Fri
in US$ per US$ (%)
Country/currency
Vietnam dong
Americas
Argentina peso
.0571 17.4900
Brazil real
.3075 3.2779
Canada dollar
.7885 1.2682
Chile peso
.001586 631.70
Colombia peso
.0003322 3008.00
Ecuador US dollar
1
1
Mexico peso
.0525 19.1125
Peru new sol
.3086 3.243
Uruguay peso
.03426 29.2150
Venezuela b. fuerte .100125 9.9875
10.2
0.7
–5.7
–5.7
0.2
unch
–7.8
–3.3
–0.5
–0.1
Asia-Pacific
Australian dollar
.7662 1.3051
China yuan
.1506 6.6415
Hong Kong dollar
.1282 7.8011
India rupee
.01539 65.190
Indonesia rupiah .0000740 13533
Japan yen
.008813 113.54
Kazakhstan tenge .003002 332.80
Macau pataca
.1242 8.0465
Malaysia ringgit
.2377 4.1915
New Zealand dollar
.6930 1.4431
Pakistan rupee
.00952 104.950
Philippines peso
.0195 51.238
Singapore dollar
.7358 1.3604
South Korea won .0008942 1120.97
Sri Lanka rupee
.0065104 153.60
Taiwan dollar
.03311 30.170
Thailand baht
.03020 33.125
–6.0
–4.4
0.6
–4.1
0.06
–3.0
–0.3
1.6
–6.6
–0.1
0.6
3.3
–6.0
–7.2
3.5
–7.0
–7.5
US$vs,
YTDchg
Fri
in US$ per US$ (%)
.00004403
22713 –0.3
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
.04565 21.907 –14.7
.1568 6.3795 –9.8
1.1665 .8573 –9.8
.003740 267.40 –9.1
.009657 103.55 –8.3
.1229 8.1345 –5.9
.2759 3.6239 –13.4
.01690 59.187 –3.4
.1197 8.3564 –8.2
1.0042 .9958 –2.3
.2588 3.8636 9.7
.0377 26.5100 –2.1
1.3191 .7581 –6.4
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6522 .3771 –0.03
.0567 17.6500 –2.7
.2818 3.5485 –7.8
3.3055 .3025 –1.0
2.5967 .3851 0.04
.2596 3.853 5.8
.2667 3.7502 –0.01
.0696 14.3704 4.9
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.58 –0.03–0.04 –5.77
ILYA NAYMUSHIN/REUTERS
Sector Makes It for Real
U.S. dominance in wheat is being eroded by farmers in Russia, Europe and India. A tractor piles wheat grain in a village near Siberia.
In Russia, Wheat Abounds
BY JESSE NEWMAN
AND BENJAMIN PARKIN
U.S. wheat farmers are losing out to an old rival: Russia.
The 83 million tons of
wheat Russian farmers are
forecast to have reaped this
season has cemented the country’s resurgence as an
agricultural superpower and ratcheted up the
pressure on U.S. farmers, who
sowed fewer acres of wheat in
2017 than ever before. Wheat
prices at the Chicago Board of
Trade hit $4.19 a bushel this
week, down almost 25% since
Russia began a record wheat
harvest in July.
Large investments and a
weaker ruble have helped Russia surpass the U.S. as the
world’s top wheat exporter. A
decade ago, for instance, U.S.
farmers supplied a large portion of North Africa’s grain.
The U.S. Wheat Associates
trade group said it would close
its office in Egypt, the world’s
largest wheat importer, in December.
“We literally can’t compete
on the price of wheat in those
markets compared to Russia,”
said Steve Mercer, the trade
group’s spokesman.
Poor weather this year
added to the trouble facing
American farmers. Russia enjoyed a cool, wet growing season, while the U.S. Great Plains
were hit by drought and a late-
Sources: Tullett Prebon, WSJ Market Data
Group, Thomson Reuters
season snowstorm. U.S. wheat
output is expected to fall by a
quarter from the previous season.
Other countries are also
chipping away at U.S. dominance in wheat. Farmers are
growing more grain in Europe
and India. The U.S. Department of Agriculture expects
American wheat to make up
15% of global exports this year,
down from half in the
mid-1970s.
A main reason has been
Russia’s resurgence. Russia
was a giant of world grain
markets in the early 19th century, shipping wheat from
vast, fertile fields to mills
across Europe. That dominance slipped as industrial agriculture spread across the
U.S. in the early 20th century.
The Soviet Union’s collectivized farming system broke
down, and Russia in the 1970s
began importing huge quantities of wheat and other foods.
But since the late 1990s,
Russian agriculture has rebounded. Backed by government support and private investors, Russian farmers
bought machinery and invested in supplies and land. A
weaker ruble and bans on imported food have given farmers an added boost.
“The highly inefficient Soviet crop-growing industry has
transformed into a marketdriven one,” said Andrey Sizov
Jr., managing director of agricultural consultancy SovEcon.
Grain Drain
A surge in Russian wheat production is hitting
the market share of U.S. farmers.
Share of global wheat exports
Wheat production
Russia U.S.
Russia U.S.
80 million metric tons
20%
60
15
40
10
20
5
0
0
2012 ’13- ’14- ’15- ’16- ’17-’13 ’14 ’15 ’16 ’17 ’18*
2012
-’13
*Data for 2017-18 are projections.
Source: U.S. Department of Agriculture
Russian wheat yields have
increased 70% in the past five
years. The USDA expects output from Russian farms
stretching outward from the
Black Sea to nearly double that
of American farms this season.
“Yields are growing every
year and Russia still has a lot
to do,” said Maxim Basov,
chief executive of Rusagro
Group LLC. The agricultural
conglomerate, one of the country’s largest, harvested 40%
more winter wheat this season
than a year earlier.
Some analysts warn that
Russia’s bounty could also
backfire for some farmers if a
glut in storage and transporta-
| Market events coming this week
Estimate/Year Ago($)
Record date " , 2017
Last trading day for rights is 1, 2017*
!
Tuesday
=1
,
Call Toll-Free: +1-866--
0.73/0.65
1.35/0.96
Producer price index
All items, Sept. up 0.4%
Oct., expected
up 0.2%
Core, Sept.
up 0.4%
Oct., expected
up 0.2%
Earnings expected*
Estimate/Year Ago($)
, 2017
management investment company, is subject to
investment risk, including the possible loss of the entire principal
amount invested. Investment return and the !
"
#
$ %!
&! '
& (
) including
economic dilution and voting dilution. !
!
&!
& " * !
+ !
!
"!
!
!
* ,
!
&!$ %!
&! !
& !
-./ & !
!
'
0 !"
!
! )
!
&! " $
Investors should carefully consider the Fund’s investment objectives and
policies, risks, and charges and expenses before investing. The Fund’s
which contain this
and other information about the Fund available by calling phone number
listed above. An investor should carefully read the Fund’s prospectus before investing information in this
This communication is
not an 12. .
334 & &
!
&! '
&$ !
1$.$ "& & )
&
56
* * 12. .
334 &
)
7
! "!* "
* 12. 8 !
" -) .)
/,!&
!
,!&
.94$
: 12. ;<$ &! $
Advance Auto Parts
1.22/1.73
Aramark
0.57/0.49
Cheniere Energy
(0.18)/(0.41)
Home Depot 1.82/1.60
TJX Cos.
1.00/0.91
SCOTT OLSON/GETTY IMAGES
Wednesday
Home Depot is scheduled to report quarterly results on Tuesday.
Mort. bankers indexes
Purch., previous
up 1%
Refinan., prev. down 1%
Nov., expected
26.0
Retail sales
Sept., previous
Oct., expected
up 1.6%
up 0.1%
EIA status report
Previous change in stocks in
millions of barrels
Crude oil
Gasoline
Distillates
up 2.2
down 3.3
down 3.4
Business inventories
Aug., previous
up 0.7%
Sept., expected up 0.1%
Consumer price index
All items, Sept. up 0.5%
Oct., expected
up 0.1%
Sept., core
up 0.1%
Oct., expected
up 0.2%
Empire manufacturing
Oct., previous
30.2
’16- ’17’17 ’18*
tion bottlenecks depress prices
domestically. This season has
been less profitable for many
Russian farmers than 2016,
they say.
But for now, many farmers
are reaping the rewards of
their record haul. Analysts report seeing newly purchased
luxury vehicles on the road in
many Russian farming communities.
“Everyone
is
making
money,” said Swithun Still, director at Switzerland-based
Solaris Commodities SA
which trades Russian grain.
“Producers are making money,
traders are making money. It’s
happy days.”
BY STEPHANIE YANG
AND IRA IOSEBASHVILI
Earnings expected*
AECOM
Tyson Foods
’15’16
Gold Drops
On Large
Sell Order
Treasury budget
Oct. 2016, $44.2 bil.
deficit
Oct. 2017, exp. $60 .0 bil.
deficit
%
&! '
& 4 .!
NYSE Symbol “”
NYSE Rights Symbol “ RT”
’14’15
THE WALL STREET JOURNAL.
Monday
’13’14
235,000
EIA report: natural gas
Retail sales (ex autos)
Sept., previous up 1.0%
Oct., expected
up 0.2%
Earnings expected*
Estimate/Year Ago($)
Cisco Systems
L Brands
NetApp
Target
Expected
0.60/0.61
0.30/0.42
0.69/0.60
0.85/1.04
Thursday
Initial jobless claims
Previous
239,000
Previous change in stocks in
billions of cubic feet
up 15
Capacity utilization
Sept., previous
76%
Oct., expected
76.4%
Import price index
Sept., previous up 0.7%
Oct., expected
up 0.4%
Industrial production
Sept., previous up 0.3%
Oct., expected
up 0.5%
Philadelphia Fed survey
Oct., previous
27.9
Nov., expected
25.0
Earnings expected*
Estimate/Year Ago($)
Applied Materials
0.91/0.66
Best Buy
0.78/0.62
Gap
0.54/0.60
J.M. Smucker 1.90/2.05
Ross Stores
0.67/0.62
Wal-Mart
0.97/0.98
Friday
Building permits
Sept., previous 1.215 mil.
Oct., expected 1.25 mil.
Housing starts
Sept., previous 1.13 mil.
Oct., expected 1.18 mil.
* FACTSET ESTIMATES EARNINGS-PER-SHARE ESTIMATES DON’T INCLUDE EXTRAORDINARY ITEMS (LOSSES IN PARENTHESES) ADJUSTED FOR
STOCK SPLIT
NOTE: FORECASTS ARE FROM DOW JONES WEEKLY SURVEY OF ECONOMISTS
Gold prices tumbled to a
one-week low on Friday, after
a large seller shook up quiet
trading ahead of the weekend.
Gold for December delivery
settled down 1% at $1,274.20 a
troy ounce on the Comex division of the New York Mercantile Exchange, the lowest settle value since Nov. 3.
The precious metal edged
lower on Friday morning, but
losses accelerated shortly
after 11 a.m. as volume rose on
a sale of about 40,000 contracts, or four million ounces
of gold, which led prices down
$8 in a span of about 15
minutes.
Traders said the move
looked like the liquidation of
a large position in the gold
market, but with an unclear
catalyst.
Some noted that it coincided with a sharp intraday
move higher in the dollar, with
the ICE Dollar Index jumping
from 94.30 to roughly 94.44.
“The seller probably had a
long position and got nervous
as the dollar rose,” said Peter
Hug, global trading director at
Kitco Metals.
A stronger dollar tends to
weigh on gold, which is priced
in the U.S. currency and becomes less affordable to foreign buyers when the dollar
appreciates. Others pointed to
an uptick in short-term bond
yields.
“There was no real trigger
for it,” said Tai Wong, head of
metals trading at BMO Capital
Markets. “It would usually
move like this on a substantial
piece of data.”
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.
Monday, November 13, 2017 | B11
MARKETS
THE DAILY SHOT By Lev Borodovsky
Tax Plans Tweak the American Dream
U.S. homeownership has been trending upward after years of decline,
but possible changes in tax law could threaten a revival
The Republican tax plans
in Congress add a volatile
new element to the swirling
dynamics in the U.S. housing
markets. The postcrisis
pressure on homeownership
levels and rental vacancies
finally has subsided, a
hopeful sign for the homebuilding and real estate
industries.
But GOP plans threaten
that progress, at least in
some high-income, high-tax
areas, by sharply curtailing
state and local tax deductions that help to keep home
purchases within reach for
many buyers. Those markets
appear vulnerable thanks to
large recent gains. A
national housing downturn
doesn’t seem to be at hand,
given the solid performance
of the economy. But nowadays, it seems, even taxes are
hardly certain.
WSJ
subscribers can get
The Daily Shot—
a chart-by-chart briefing
on markets and economics—
sent to their email
each morning. Subscribe at
wsj.com/newsletters
Homeownership rate, quarterly
Rental-vacancy rate, quarterly
U.S. recessions
75%
70
15%
South
Midwest
Midwest
10
U.S.
South
65
U.S.
Postcrisis
low
Northeast
Postcrisis
low
5
Northeast
60
West
55
West
0
1990
’95
2000
’05
’10
’15
’17
’95
1990
’05
2000
’15
’10
The number of renter-occupied homes in
the U.S. has declined from a recent peak.
Nationally, rent increases are
now outpacing wage growth.
Household formation
remains sluggish.
Renter-occupied housing units
Index of rental costs vs. wages (October 1997=100)
U.S. households, percentage change from a year earlier
45 million
175
40
150
35
125
Rental costs
2%
Wages
2000
’05
’10
’15
’17
1
0
100
30
–1
1997
2000
’05
’10
’15
’17
2006
’10
How Mobile
Games Keep
Aging Well
Nearly anyone can make a
mobile game these days.
Crafting one with staying
power is the real trick.
Recent quarterly results
from companies like Activision Blizzard, Electronic
Arts, Zynga and Glu Mobile
show why. All showed sharp
year-over-year increases in
mobile-game revenue for the
period. All were mostly driven
by games that have been
around for years, which offer
plentiful opportunities for ingame sales as well as large
player audiences for in-game
advertising.
Internet analytics firm
Statista counts nearly 800,000
games in Apple’s App Store
alone, so mobile gamers have
plenty of choices about where
to spend their time. But where
they spend their money
doesn’t shift much.
The growing mobile game
market has been particularly
good for Zynga, which has
spent the past few years recovering from the sharp declines of its once popular social game business. The
company’s mobile revenue
jumped 33% year over year to
$194 million in the third quarter.
Much of that can be credited to Zynga Poker, the mobile version of the game Zynga
launched for social networks a
decade ago. Zynga uses events
like challenges and league play
to drive in-game revenue. As a
result, Zynga Poker’s thirdquarter mobile bookings
surged 81% year over year.
Of course, nothing lasts forever in the videogame business. The quick fade-out of titles like “Super Mario Run”
show that even wildly popular
franchises don’t always stick
in mobile. But when it comes
to where they spend money,
mobile gamers have proved to
like familiar ground.
—Dan Gallagher
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Generics Makers Face Legal Risks
Generic drugmakers and
their investors have so far
shrugged off a state lawsuit
and federal investigation into
possible price collusion. That
may be the right bet, but there
are a few things that investors
should watch closely.
Attorneys general in 45
states are seeking to expand an
existing collusion lawsuit to 18
companies from six and name
high-ranking executives from
target companies as defendants. The expanded complaint
alleges the companies involved
conspired to fix the price of 15
generic drugs over a number of
years.
While share prices have
been weak, the declines have
mostly been due to poor performance and not the legal issues. Companies that have addressed the issue, including
Mylan and Lannett, have said
their own investigations have
found no wrongdoing.
Investors who don’t want to
get sideswiped need to watch
for several possible developments.
Under Pressure
Higher U.S. generic drug approvals have caused prices to fall
800
600
400
200
0
FY2013
’14
’15
’16
’17
Note: Fiscal year ends September 30
THE WALL STREET JOURNAL.
Source: Food and Drug Administration
While it is true that none of
the 15 drugs mentioned in the
expanded complaint is an especially big seller, the government is unlikely to stop at minor products.
Connecticut Attorney General George Jepsen said in an
interview that the publicly
available allegations are the
“tip of the iceberg” and predicted that his investigation
will further expand into new
drugs.
If those drugs are big sellers, that would be a risk for investors. The deflationary nature of the industry means that
companies tend to earn a large
share of profits from relatively
small parts of the portfolio.
A 2016 study of Medicare
claims data from the U.S. Government Accountability Office
’15
’17
THE WALL STREET JOURNAL.
Source: U.S. Census Bureau via Federal Reserve Bank of St. Louis (ownership, vacancy, renter-occupied units, formation); Bureau of Labor Statistics via Federal Reserve Bank of St. Louis (rent, wages)
Email: heard@wsj.com
’17
found that a basket of more
than 1,400 established drugs
fell in price by more than 20%
from 2010 through 2015. However, industry profits as a
whole grew rapidly over that
time frame.
That investigation is also a
live issue: ANI Pharmaceuticals, a generics company that
sells about three dozen products, said in a securities filing
this month that the government served the company and
its employees with search warrants, ordered them to produce
documents and possibly testify
back in September.
Then, there is the risk that
any fallout from the regulators
could crimp any future ability
to raise prices. And years of
splashy mergers and acquisitions, often at fancy valuations,
have weakened balance sheets
across the sector. That means
financial settlements could
sting stockholders more than
they otherwise would.
This is a drug pricing drama
that investors shouldn’t ignore.
—Charley Grant
WSJ.com/Heard
OVERHEARD
There are headlines that
work and there are headlines
that don’t work. The ones that
don’t work can work to companies’ advantage.
Reporters know that stories
with short punchy headlines
get read. A randomized analysis
by economist Tarik Umar of
posts on crowdsourced investment research site Seeking Alpha proved that is true: Short
headlines, especially short negative headlines, draw more
readers.
If investors pay less attention to articles with long headlines, then what about corporate earnings releases. The Rice
University economist found
that, on average, the initial response to releases with long
headlines was less trading and
less price movement than for
releases with short headlines.
But over the next month, the
stock prices of the companies
with long headlines adjusted—
up if the release was good,
down if it was bad. Eventually,
the news catches up with you.
Plunging Cable Giant Altice Is Bargain for Brave Investors
Cable group Altice has lost
its Midas touch: That is the
dour message from stock
markets on both sides of the
Atlantic. It might not be a
bad entry point for contrarian investors comfortable
with extreme leverage and a
buccaneering management
style.
Amid sweeping boardroom
changes, billionaire founder
Patrick Drahi took back the
reins Thursday from former
Chief Executive Michel
Combes, who resigned. The
Amsterdam-listed stock of
parent group Altice NV has
fallen 36% in the wake of
weak third-quarter results
and cautious guidance last
week.
The company carries €56.3
billion ($65.67 billion) in
debt—more than three times
Altice Way Down
Enterprise value to Ebitda*
since Altice USA's IPO
Charter
Altice USA
Comcast
12 times
10
8
6
J
A
S
O
*Earnings before interest, taxes,
depreciation and amortization
its equity value—so small
changes in earnings have a
big impact on earnings per
share. Even so, the selloff
looks harsh, taking the stock
back to 2015 lows.
Investors have lost patience with Altice’s core
French operation, which has
failed to transform substan-
N
tial capital investment in fiber broadband and exclusive
media content into revenue
growth. Exclude the market
capitalization of listed U.S.
subsidiary Altice USA, and Altice NV is valued at roughly
six times earnings before interest, taxes, depreciation and
amortization. That is a big
discount to John Malone’s
Liberty Global, the other European cable operator, on 10
times, and in line with
growth-challenged former
telecom monopolies like Orange and Telefónica.
Altice USA, too, has lost its
exceptionalism. Management’s record of boosting
margins following acquisitions allowed bankers to
price its June IPO at a chunky
premium to larger cable companies Comcast and Charter.
The shares have since fallen
by a third, valuing the company at a discount to Charter,
despite fairly solid results.
Investors seem to fear Altice’s problems in France
could spread across the Atlantic. Mr. Drahi has been
quick to ascribe his success to
the “Altice Way,” an approach
to reviving cable companies
based on cutting costs and
plowing cash flows into new
infrastructure. So it is hardly
surprising investors see the
company’s woes in France,
where Mr. Drahi made his
fortune buying up small cable
operators abandoned by Liberty Global and others, as
systemic rather than local.
It won’t be easy for Mr.
Drahi to fix problems that
stymied Mr. Combes. French
competition is intense. Just
like AT&T in the U.S., Orange—formerly France Télécom—is busy rolling out fiber
that competes with Altice’s
cable offer.
However, the low share
price probably gives investors
a buffer against further bad
news in France and the results in the U.S. are still decent.
Investors need a stomach
for volatility and the governance problems associated
with playing second fiddle to
a single controlling shareholder. But the flip side of
those problems is that Mr.
Drahi, with 59% of Altice NV
shares as well as stock options potentially worth more
than €1 billion, has every motivation to mount a turnaround.
—Stephen Wilmot
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 | Monday, November 13, 2017
THE WALL STREET JOURNAL.
REAL-TIME
NETWORK
PERFORMANCE
DATA ACROSS
ALL YOUR
LOCATIONS,
IN THE PALM
OF YOUR HAND.
Introducing the Comcast Business ActiveCore SM mobile
app for SD-WAN management. A game-changing tool
that monitors your network’s health, offers proactive,
actionable insights, and delivers real-time data across all
your locations to a single, intuitive interface.
SD-WAN from Comcast Business offers up-to-the-minute
information on your network’s performance, down to the
site level. So there’s no more calling around to multiple
locations to troubleshoot WAN issues. And now it’s
available in the palm of your hand.
It’s Gig-ready, powered by an advanced IP network,
and only from Comcast Business.
Restrictions apply. May not be available in your area. Actual speeds vary. ©2017 Comcast. All rights reserved.
comcastbusiness.com/sdn
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
JOURNAL REPORT
© 2017 Dow Jones & Company. All Rights Reserved.
THE WALL STREET JOURNAL.
Follo
The E
w
xper
ts
A
Convn Online
e
DETA rsation
I LS
Monday, November 13, 2017 | R1
STEVE SCOTT
, R2
Where Should You
Live in Retirement?
First, Ask Yourself
These Questions
It’s one of the most basic questions people ask themselves when they start planning for retirement: Where am
I going to live?
It’s also one of the most crucial questions, and one
that, surprisingly, many people don’t give a lot of thought
to. Sure, they ask themselves some cursory
BY
questions—especially about the weather and
CHRIS
KORNELIS
affordability. But they rarely delve very
deeply, even though making the right choice
can offer a greater chance of having a more fulfilling life.
“People really need to figure out what they’re looking
for,” says Dorian Mintzer, a Boston psychologist and coauthor of “The Couple’s Retirement Puzzle.” “Often people don’t think about what kind of life they want. Do they
want to do volunteer work? An encore career? Is that a
factor in terms of where they live?”
With that in mind, here are nine questions people
should ask themselves before they answer the big question about where.
1.What do you want to do?
OK, it’s a basic question, but it’s one surprisingly
few people ask themselves. They may have some superficial sense about where they want to live, without
thinking first about what kind of life they want.
“One of the great things about being in older age,”
says Paul Irving, chairman of the Milken Institute Center for the Future of Aging, “is the opportunity to be
truly honest with ourselves about what’s truly important to us. Not what you saw in a television commercial or a newspaper ad, but to think about what really
matters to you and to your family and how you want
to live the rest of your life.”
Yet that honesty isn’t easy, in part because of those
television commercials and in part because what somebody wants in retirement may be totally different from
what they believed they wanted when they were younger.
Mike Newes, a real-estate agent in Fort Myers, Fla.,
says he often sees couples start their retirements buying a home in one location. Then, two or three years
later, they move somewhere else: closer to their children, closer to friends, a smaller house—something
that supports the lifestyle they want in retirement.
They waste a lot of time, and a lot of expense.
People really don’t think about what they want to
do with their retirement, he says. They think: “ ‘I want
to not do this.’ But what do you want to do?”
Skype close enough to your
2.Isgrandchildren?
These days, thanks to technology, people thinking
about retirement dismiss proximity: We can always FaceTime every day, they figure.
But they quickly discover that it doesn’t work out
that way. Family, and especially children, aren’t as eager to tell the grandparents about their day, even if
they can see them on their phones.
As a result, says Neil Brown, a certified financial
planner at Burkett Financial Services in West Columbia, S.C., people often misjudge the distance they’re
putting between themselves and their families. They
think that between Skype, text messaging and “just
jumping on an airplane,” they will remain close, he
says.
Bert Sperling, the founder of BestPlaces.net—a website that studies and provides research on cities and
places—says a real-estate agent recently told him that
he sells the same homes to the same kinds of people
every five or six years: retirees who want to stare at
the ocean and have a place on the beach for family to
visit. But after a few years, they discover that they
don’t need to look at the ocean every day and their
families are busy and don’t visit as often as they
thought they would.
So before deciding on that first move, ask yourself:
How likely is your family to stay put? People change
jobs much more quickly today, and it isn’t uncommon
for people to move to be near their children and
grandchildren—only to have the children pack up their
families shortly afterward. In other words: Are you
willing to be the trailing grandparents?
3.Are you open to renting?
Financial advisers say it can be hard for retirees
who have spent their lives building equity in their
homes—and being taught about the virtues of homeownership—to become renters. It feels like throwing
money away. But renting a home in a city before buying can give retirees a chance to really know if it’s the
place they want to spend retirement.
Dave Bensema, a wealth-planning consultant at
BMO Private Bank in Chicago, says it’s especially common for people to retire somewhere they’ve been
while on vacation. He cautions that the two experiences are completely different. Renting a home for a
year lets you get to know the area in all its seasons—in
terms of weather, culture, politics.
“What you’ll put up with on vacation for a week,”
Mr. Bensema says, “is different than something you’d
put up with every day.”
Renting can also give people a chance to see the
area from the perspective of a residential neighborhood, not a hotel. Even if they don’t want to spend an
entire year as a renter, Mr. Sperling says, people can
stay in an actual neighborhood for a few weeks or
months thanks to Airbnb. They can then get the feeling
of the part of town they’re likely to live in, as opposed
to going to bed at night by the beach or downtown.
4.Will your doctor accept Medicare?
When planning for retirement, health care is often not even on the list of considerations. After all,
people in their 40s, 50s and even 60s find it hard to
anticipate the physical ailments ahead.
Please turn to the next page
INSIDE
The Best Way to Find
Meaningful Volunteer Work
Protecting the Nest Egg
In Case of Disaster
Dementia’s Tragic Toll
On Families
Also: Answering readers’ questions
on 401(k)s and Social Security
R2
Steps to take to safeguard your
home and your savings
R4
It often pits siblings against one
another, but it doesn’t have to
R8
Robo Advisers Turn To Retirees
The Psychological Benefits
Of Writing a Memoir
The Best Books of 2017
On Healthy Aging
We took four services for a test
drive. Here’s how they compared.
R3
Ready to Downsize?
There’s Plenty of Help
There’s good money in helping
boomers and parents relocate
R4
Even if nobody reads the book, it
can help make sense of your life
R5
Great reads for nurturing minds,
bodies and pocketbooks
R9
The Hidden Disease That
Affects the Middle-Aged
The Older I Get,
The Less I Seem to Know
Ailments of the liver are on the
rise, but many aren’t aware
R6
They say wisdom comes with age.
Not the kind I always cared about.
R12
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.
R2 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
ASK ENCORE | GLENN RUFFENACH
The Best Way to Find Meaningful Volunteer Work
Also: Answering readers’ questions on 401(k) accounts and Social Security
i
I would like to spend more
time volunteering when I retire, but I know that finding
meaningful work isn’t always
easy. Any suggestions how to
go about this?
i
JOHN CLARKSON
Sierra Club volunteers have nice work environments; in the Idaho panhandle, for example.
Volunteers: By the Numbers
In 2015, almost 63 million adults in the U.S. volunteered through an organization.
In the 65-plus demographic:
Pct. who volunteered
Adults age 65-plus volunteered most frequently with these groups:
23.5%
11 million
Social/
community
service
Hours of service
18.6%
Number of volunteers
Religious
$45.4 billion
Median hours
9.3% | Other
90
Numbers don’t total 100% due to rounding.
Source: Corporation for National and Community Service, “Volunteering and Civic Life in America”
to a Roth 401(k). However, the company administrator advises me that catch-up contributions can only be directed to a traditional,
pretax account, based on the company’s current plan rules. Is there a reason in the tax
code that catch-up contributions cannot be
directed to a Roth account?
Actually, the tax code allows for catch-up
contributions to be made to a Roth 401(k). I
don’t know why your plan has this limitation.
Most people, in 2017, can contribute a maximum of $18,000 to their 401(k). (That figure
jumps to $18,500 in 2018.) But employees
age 50 and older can contribute an additional
$6,000. This rule is designed to help people
Where Should
You Live in
Retirement? 5.
Continued from the prior page
But Stephen Golant, a gerontologist and geographer at the University of Florida, says
finding a health-care provider in retirement
should be a major point of discussion. It’s difficult, he says, to find a doctor that you’re compatible with when you move to a new city and
have a half-dozen prescriptions.
“It’s very hard to find new, reliable doctors,” he says. “Older people, despite the hype
they hear, have to be prepared for their bodies
to experience some decline that needs to be
responded to and treated.”
How are you going to get an
ice-cream cone?
This is one of three retirement destination
questions that Joseph Coughlin, director of
MIT’s AgeLab, addresses in his new book, “The
Longevity Economy.” He says the question is
about knowing what makes you happy, and
making sure you know you’ll be able to access
it even if you can’t drive, even if you can’t arrange a van to pick you up, and even if you
can’t ask a child or friend to give you a lift.
“Life is made of these little moments—not
punctuation points like Christmas dinner and
a trip to Italy—but the little moments: getting
a newspaper, getting a cup of coffee,” he says.
“You have to understand when you’re doing re-
Decisions, Decisions ...
How people think about relocating in retirement, based on a survey of adults 18 or older, from March 2017
YES
43% 54%
Men
NO
54%
YES
43%
YES
NO
54%
41%
NO
Those who identified the following to be one of the most important
or a very important factor in deciding if a place is good for retirement
Women
Aged 50-64
All respondents
80%
60
40
Women
YES
49% 47%
20
0
Cost of
living
Healthcare
quality
Crime
rate
Culture Weather
and
activities
Taxes
Lots of
other
retirees
Note: Answers based on those who would consider moving
Source: Bankrate Inc.; Princeton Survey Research Associates International
Aged 50-64
4.4% | Sport/hobby/cultural/arts
43.9%
Mr. Brown, the certified financial planner,
says one client just told him that he moved to
a place where he had to go to three different
medical practices to find someone who would
accept new Medicare patients.
NO
7.9% | Hospital/health
7.1% | Civic/political/professional
Service contributed
I am currently maximizing regular and catchup contributions in my company’s 401(k) program. The regular contributions are directed
Men
8.9% | Education/youth service
1.9 billion
i
Would you consider moving
to another city or state when
you retire?
i
I recently turned 62. I am employed but plan
to change jobs. My problem is that I will need
to support myself without a paycheck for at
least six months while I make the transition
to a new field. Can I receive Social Security
for six to eight months, then go back to
work, stop receiving Social Security and have
my earnings from my new job count toward
my earnings record when I eventually retire?
Or is the decision to receive Social Security
benefits irrevocable? Essentially, I am asking
whether I can use Social Security to fund a
sabbatical before I move on to a new career.
To start, and as counterintuitive as this
might sound, put yourself first.
Yes, volunteering invariably begins with the
notion of sacrifice. But a big incentive for
many people—and what keeps them coming
back—is what they get from the work,
whether it’s friendships with fellow volunteers,
or pats on the back.
Put another way, seek out work where you
might benefit.
Volunteers at first “tend to focus very heavily on the idealism of giving back,” says Marc
Freedman, CEO of Encore.org, a nonprofit that
promotes encore careers. But there are also
“more immediate aspects that appeal to them:
being part of a group or a team, giving themselves a reason to get up in the morning, or a
place to go, or a schedule to live by.” He adds:
“The relationships and a sense of purpose are
just as important as some of the more lofty
ideals in getting a satisfying experience.”
Learning opportunities are a good example
of this. Many people donate their time to museums, gardens and the like. The work is frequently its own reward. But these same volunteers, in many cases, also enjoy perks: lectures
by curators, an early look at new exhibits, invitations to functions. Again, when sizing up
nonprofit opportunities, there’s nothing wrong
with considering how you might, well, profit.
Along these same lines, look for a place or
organization that’s “volunteer-centric.”
All nonprofit groups and social-service
agencies are structured differently. A library
may have a small number of volunteers to assist visitors and shelve books. But it isn’t set
up to offer frequent orientation, training, field
trips and seminars solely for its volunteers.
In contrast, groups organized to train and
put volunteers to work tend to offer more—
more educational opportunities, more chances
to mingle with fellow recruits and more recognition—all of which may grow in importance
when volunteer work replaces a career.
One retiree told us about the recognition
she received through the Court Appointed
Special Advocate program, known in some
communities as the guardian ad litem program, in which volunteers speak up for abused
and neglected children in the courts. After 40
hours of training, she and her colleagues were
sworn in by a judge.
“The judge thanks you in court, and you
feel like you’re a professional,” she says.
i
i
All respondents
THE WALL STREET JOURNAL.
Follow The Experts >>
This Journal Report doesn’t stop here. Join us online with The Experts—a group of industry, academic and cultural thinkers who weigh in on
the latest issues raised in this and future reports. Read what they have to
say at WSJ.com/Experts. Posts featured throughout the week include:
“What Online Dating Profiles Say About Our View of Aging,” by Marc
Agronin, a geriatric psychiatrist at Miami Jewish Health in Miami, Fla.
“The Surprising Benefits and Costs of Caregiving,” by Maddy Dychtwald, author and cofounder of Age Wave, a think tank and consultancy.
“Three Costly Estate-Planning Mistakes Investors Make With IRAs and 401(k)s,” by Jonathan Guyton, principal at Cornerstone Wealth Advisors.
And on page R10 of this report, you can read excerpts of some earlier online discussions.
The Experts offer views on how higher interest rates post a threat to the elderly, a more taxefficient way to give to charities and how to get the most out of calling your doctor.
THE WALL STREET JOURNAL.
closing in on retirement beef up their nest
eggs. Note: The limit on catch-up contributions for 2018 remains unchanged at $6,000.
What to do? “I would get [this restriction]
in writing from the plan administrator,” suggests Ed Slott, an expert on retirement-savings accounts in Rockville Centre, N.Y. “That
will at least force someone [at the plan] to
check if this is actually true.”
Another possibility: There could be confusion about catch-up contributions vs. employer
matching contributions, which can’t go to a
Roth 401(k). “Employer matching contributions
can go only to the pretax 401(k) side of the
plan, so maybe that’s where the disconnect
is,” Mr. Slott says. “It’s worth asking about.”
tirement planning, what are those little moments, those little things that only you, not
even your spouse, know that will make you
smile? And from a transportation point of
view: Do you have access to it?”
6.
How are you going to change
your lightbulbs?
Mr. Coughlin says people often make the mistake of planning for themselves today, not the
people they will become later in retirement. At
65, changing a lightbulb, fixing an appliance
and taking out the trash might not be something people struggle with. But they may need
help with those tasks when they’re 85.
“Having money is great,” he says, “but unless you have those additional services to enable you to live well, then that’s not necessarily a good retirement. That’s a subsistence
retirement.”
7.
Who are you going to have
lunch with?
Perhaps one of the most important aspects of
picking the right place to retire is the social
one. Who are you going to see on a daily basis? Who will be in your social circle? Who are
you going to have lunch with?
“Isolation is perhaps the greatest pandemic
facing an aging society,” Mr. Coughlin says.
“Because you’ve spent an entire life, generally
speaking, where things come to you, people
come to you, you’re in the flow that work and
society and volunteering and church and everything gives you. And as you age, you’re
likely to do less, get out less. As a result, fewer
people are coming to you.”
It’s therefore crucial, he says, that part of
preparing for retirement “is to make sure you
put yourself in the flow of constant chance collisions of new friends and relationships.”
Mr. Irving of the Milken Institute echoes
that warning. “We talk a lot about the fact that
sitting may be as bad for you as smoking,” he
The Journal Report welcomes
your comments—by mail, fax or
email. Letters should be addressed to Lawrence Rout, The
Wall Street Journal, 4300 Route 1
North, South Brunswick, N.J.
08852. The fax number is
609-520-7256, and the email
address is reports@wsj.com.
THE JOURNAL REPORT
For advertising information
please contact Katy
Lawrence at 212-416-4119
or katy.lawrence@wsj.com
It’s certainly an interesting thought. And
you are able to stop benefits after you begin
collecting them. But this plan probably won’t
work—at least not in the way you imagine.
Once you begin collecting Social Security,
you have 12 months in which to change your
mind and ask the Social Security Administration to stop payments. This is what’s known
as a “withdrawal of application”; in the eyes of
the agency, you are withdrawing your original
application for benefits.
So, in that sense, Social Security is not an
irrevocable decision. But there are several
catches here.
First, you can take this step of starting and
stopping benefits only once in your lifetime.
Second, if you withdraw your application for
benefits, you must pay back to the Social Security program all of the money you have received to date. What’s more, the mechanics of
doing this (you fill out a one-page request)
aren’t as easy as they appear, says Mike Piper,
author of “Social Security Made Simple.”
“Many Social Security Administration employees aren’t particularly familiar with the
process,” he says. And “there can be tax ramifications resulting from the repayment of benefits that you received in a prior year.”
Finally, let’s say you start Social Security
during your break and simply let benefits continue once you return to work. You might not
be happy with this approach, either. First,
starting payments at age 62 or 63 reduces
your monthly check considerably (and permanently) from what it would be at your “full retirement age,” as defined by Social Security.
Second, the wages from your new job, if they
exceed a certain level, could run up against Social Security’s “earnings test”; that, in turn,
could reduce, or even eliminate, your monthly
check until you reach full retirement age.
All of which argues for considering other
ways to fund your sabbatical, even if it’s a bit
of a temporary stretch.
Mr. Ruffenach is a former reporter and editor
for The Wall Street Journal. His column examines financial issues for those planning and living their retirement. Send questions and comments to askencore@wsj.com.
says. ““But isolation may be as bad or worse
than both of them.”
busy is this place going
8.How
to get?
Another way to think about this question is: If
you are thinking about moving to a place, it’s
likely others are, too. And because people are
living so long, it is worth thinking about what
a community will look like in, say, 20 years.
Mr. Newes, the Florida real-estate agent,
says people consider how much an area will
grow and whether it can support the new development. He obviously knows this too well:
He says that people moved to Florida’s east
coast thinking it would be 30 minutes between
X and Y, and now it takes 60 or 90 minutes.
wrong with where I
9.What’s
live now?
This is perhaps the most important question
people should ask. A lot of people assume that
they will move in retirement. But the fact is
most people don’t. In fact, Danielle Hale, chief
economist for Realtor.com, says that 85% of retirees stay in the area where they raised their
families.
There’s a reason for that. Mr. Irving says
people have often spent their entire lives
building a community in one location. Moving
to, say, a warmer climate, may sound appealing, but he cautions that people should think
about what they’ll be leaving behind, and if
they would trade a lifetime of friends, family,
cultural institutions and familiar roads for
more days of sun a year.
“Aging well is about more than warm
weather,” Mr. Irving says. “It’s about more
than leisure. It’s about ongoing opportunities
for engagement and connection and lifelong
learning.”
Mr. Kornelis is a writer in Seattle.
Email him at reports@wsj.com.
REPRINTS AVAILABLE
FULL PAPER: The entire Wall Street
Journal issue that includes the Encore
report can be obtained for $10 a copy.
Order by:
Phone: 1-800-JOURNAL
Fax: 1-413-598-2259
Mail*: Encore
Dow Jones & Co.
Attn: Back Copy Department
84 Second Ave.
Chicopee, Mass. 01020-4615
JOURNAL REPORT ONLY: Bulk orders of
this Journal Report section only may
take up to six weeks for delivery and
can be obtained for $5 for one copy,
$2 for each additional copy up to 50,
and 25 cents for each copy thereafter.
Order by:
Email: JournalReports@dowjones.com
Mail*: Dow Jones LP
Attn: Mailing Operations Dept.
84 Second Ave.
Chicopee, Mass. 01020-4615
REPRINT OR LICENSE ARTICLES: To
order reprints of individual articles or
for information on licensing articles
from this section:
Online: www.djreprints.com
Phone: 1-800-843-0008
Email: customreprints@dowjones.com
*For mail orders, do not send cash.
Checks or money orders are to be made
payable to Dow Jones & Co.
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.
Monday, November 13, 2017 | R3
JOURNAL REPORT | ENCORE
Robo Advisers Turn Toward Retirees
We took four services for a test drive. Here’s how they compared.
ROBO-ADVISORY SERVICES that
pair algorithms with human help
have long been popular with millennials because of their low fees. But
as baby boomers increasingly embrace the trend, too, many companies are adding features for retirees.
These services used to focus
mainly on helping clients save for financial goals such as retirement.
Now, they also offer tax-efficient
strategies for turning nest eggs into
steady streams of retirement income, as well as recommendations
on Social Security, Medicare and
long-term-care insurance.
Client demographics explain the
shift. Industry leader Vanguard
Group says 85% of those enrolled in
its $93 billion Personal Advisor Services are over age 50. Among participants in Charles Schwab Corp.’s Intelligent Advisory service, 53% are
older than 55.
“Eighty percent of investible assets are held by people 50 and over,”
says Matt Fellowes, chief executive
of United Income Inc., a new service
backed by investors including Morningstar Inc. that focuses on people
ages 50 to 70.
To see what people in or near retirement can get from a robo-type
service, we test drove offerings from
Vanguard, Schwab, United Income
and Betterment LLC—with the firms’
knowledge and support—using data
from “Ellen and Greg,” a hypothetical 65-year-old couple in suburban
New York who are about to retire.
We answered questions about the
couple’s annual income ($300,000),
after-tax spending ($126,000), savings ($2 million), and desire to sell
their $1.5 million home to buy a
$1.75 million Manhattan apartment.
The process took from 10 to 45
minutes, depending on whether we
let the services estimate the couple’s
spending or took the time to manually enter details including their
budget.
Using screen-sharing technology,
we spent about an hour with advisers at each firm. We got answers to
key questions, including whether the
couple can afford to retire, when
they should claim Social Security,
and how they should allocate their
CARL WEINS
BY ANNE TERGESEN
investment portfolio.
While we were impressed with
much of the advice overall, we found
some important differences between
the services.
Here are our reviews:
Our guinea pigs: A
hypothetical suburban
New York couple who
are about to retire.
BETTERMENT PREMIUM
Price: 0.4% (with no fees on bal-
ances above $2 million), plus investment fees of 0.07% to 0.16%.
Minimum investment: $100,000
Review: Our adviser, Garrett Oakley,
said Ellen and Greg have a 97%
chance of being able to maintain
their desired spending until age 90—
Betterment’s default life expectancy—even after using the proceeds
from selling their $1.5 million home,
plus $400,000 in savings, to purchase a $1.75 million apartment.
(The $400,000 would cover the difference in price, plus capital-gains
taxes and transaction fees on the
home sale.)
Still, to minimize the drain on
savings and find a way to pay for
long-term-care insurance, Mr. Oakley
advised Ellen and Greg to purchase a
slightly cheaper apartment.
For new Medicare enrollees, Betterment often recommends traditional Medicare plus a Part D prescription-drug
plan
and
a
supplemental “Medigap” plan. Although the alternative, private Medicare Advantage—which operates like
a health-maintenance or preferredprovider organization—often has
lower premiums, it can expose participants to higher out-of-pocket
costs if they go outside a plan’s network, Mr. Oakley said.
Betterment recommended that Ellen and Greg invest 56% in stocks
and 44% in bonds at the beginning
of retirement and scale back to 30%
in stocks and 70% in bonds over
time.
Pro: The program includes tools
that estimate expenses based on a
client’s ZIP Code and income and can
link to a client’s Social Security benefits statement.
We appreciated the guidance with
Medicare.
Con: Betterment’s default is to assume clients claim Social Security
when they retire rather than recommending claiming dates that are
likely to produce the highest cumulative lifetime benefits.
SCHWAB INTELLIGENT
ADVISORY
Price: 0.28% (with payments capped
at $3,600 a year), plus investment
fees of 0.07% to 0.22%.
Minimum investment: $25,000
Review: Our adviser, Andrew Porter,
ran through a checklist of questions
and told Greg and Ellen to review
their will and monthly budget, ob-
tain quotes for long-term-care insurance, and set up an emergency fund
to cover three to six months of expenses, tasks the other advisers addressed as well. Mr. Porter raised Ellen’s life expectancy to age 96 from
the program’s default age for women
of 93, due to her family’s longevity.
Schwab gave our couple a 45%
chance of having enough to buy the
apartment and maintain their spending in retirement through age 91 for
Greg and age 96 for Ellen. The problem, Mr. Porter said, is that after
selling their $1.5 million home to pay
for a $1.75 million apartment, they
will have to withdraw $600,000 from
their savings to cover the price difference, plus capital-gains taxes and
transaction fees on the home sale.
To boost their odds of success, Ellen and Greg should reduce their
budget by $1,700 a month or buy a
cheaper apartment, Mr. Porter said.
Mr. Porter recommended a portfolio of bonds, dividend-paying
stocks, real-estate investment trusts
and other income-producing investments from firms including Vanguard, Schwab and BlackRock Inc.
Pro: The program is easy to use. It
lets users drag-and-drop pictures of
goals (“new home,” “travel”) into
their financial plan and assess the
impact of reducing spending, working longer or saving more. It also offers a choice between a 10-minute
“express” sign up and a more detailed 45-minute version.
Users don’t have to decide
whether to become a client until the
financial-planning process is complete.
Con: Schwab recommended a 12%
allocation to cash—which was much
higher than what the other services
advised and could be a drag on returns in a rising market. (Its other
recommendations: 54% in stocks,
29% in bonds, 5% in commodities.)
A Schwab spokesman said “cash is
an important asset class in a diversified portfolio” and is something
“most investors care about,” especially when in or near retirement.
Mr. Porter instructed Greg and Ellen to enroll in Medicare as soon as
possible. We were hoping for more
detailed guidance on navigating the
choice between Medicare Advantage
and traditional Medicare—guidance
Please see ROBOT page R4
Eliminate the guesswork.
Get a clear picture of when to claim Social Security.
At Fidelity, we have the tools and expertise to
help you manage Social Security.
• Determine when to claim and how much you may receive
with our Social Security benefits calculator
• See how Social Security fits into your broader retirement
savings goals in the Planning & Guidance Center
It’s your retirement. Know where you stand.
800.FIDELITY | Fidelity.com/SSCalculator
Investing involves risk, including the risk of loss.
This calculator is for illustrative purposes only.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should
not be considered financial, legal, or tax advice. Fidelity cannot guarantee that the information herein is accurate,
complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and
disclaims any liability arising out of your use of, or reliance on, such information. Visit www.ssa.gov when you’re ready
to learn more about filing and about your personalized Social Security statement and estimated benefit.
The trademarks and/or service marks appearing above are the property of FMR LLC and may be registered.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2017 FMR LLC. All rights reserved. 812677.1.0
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.
R4 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
Ready to Downsize? There’s Plenty of Help
BY JULIE HALPERT
DOWNSIZING IS becoming big
business.
It’s all about demographics:
Entrepreneurs have found a
lucrative niche in helping the
growing number of baby
boomers, and their aging parents, downsize and move.
Consider Kimberly McMahon, who in 2006 co-founded
Let’s Move, which helps seniors in Baltimore and Washington, D.C., downsize and relocate, often to residences in
retirement communities. Her
business reduces, packs up
and moves households, and
makes its clients comfortable
in their new homes, hanging
pictures, for example, and
even making beds.
“There is more business
than we can handle,” says Ms.
McMahon, a former sales director at Lucent Technologies.
She says her company has
served 5,500 clients so far and
has grown an average of 50% a
year for the past decade.
“This industry is booming,”
she says.
The National Association of
Senior Move Managers, a
trade group based in Hinsdale,
Ill., has seen membership
grow steadily since its launch
in 2002. Its roughly 950 member companies reported $225
million in total revenue in
2016, the first year the association requested the data. This
year, it says its membership
has grown to nearly 1,000.
Caring Transitions Inc., a
Cincinnati-based franchiser of
senior relocation and transition services, was founded in
2006 and now has 178 franchisees—17 of which opened this
year, according to the company. Its franchises have
served 19,000 clients so far,
says Tiffiny Vanjohnson-Lutz,
the company’s director of marketing, who adds that business
has “rapidly expanded over
the past five years.”
‘It’s draining’
Demographics are the key
driver of growth, says Mary
Kay Buysse, executive director
of the Senior Move Managers
association. Baby boomers
The stress of
downsizing is one
reason people turn
to professionals.
want to help their parents
downsize and relocate, she
says, but are often busy juggling work and family. A thirdparty professional is often the
best option to do this kind of
work, she says, especially
when a relocation becomes
necessary due to a crisis. Even
under the best of circumstances, it’s a difficult task.
“Going through a lifetime of
possessions and taking a
house that’s 2,500 square feet
and moving to a 400-squarefoot assisted-living community, it’s not easy work,” says
Ms. Buysse. “It’s draining for
everybody.”
The stressful emotions can
be another reason why many
people turn to professionals for
help. The pitch by the companies is that they offer a trusted
intermediary that can help
families avoid friction at a sensitive time, says Carol Bradley
Bursack, a consultant on caregiving and aging issues. These
services can provide their customers with “emotional empathy,” Ms. Bursack says.
Some retirement communities help cover downsizing and
relocation services as an enticement to new residents, Ms.
Buysse says. Or they may provide a list of recommended senior moving companies. Potential clients should not blindly
accept such help, or hire a service independently, without
first doing some checking on
the contractor providing that
service.
When dealing with vulnerable seniors and their valuables, it’s essential to hire a
trustworthy company, Ms.
Buysse says. Companies that
belong to her association, for
instance, must undergo a fourcourse training program with
testing, she says. The group
also has a peer-review commission if a customer has a
complaint.
Ms. Bursack, the consultant,
says any company needs to be
bonded and insured. Ask for
references, she says, and check
with the Better Business Bureau to see whether it has
been the subject of a complaint. Reading online reviews
also is helpful.
Interviewing the movers
LET’S MOVE
Entrepreneurs are finding there’s good money in
helping boomers and their parents relocate
Companies that help people downsize and relocate are thriving.
themselves is key, Ms. Bursack
adds. Ask yourself, “Do they
love what they’re doing
enough to do this well, or are
they just in it for the money?”
A good service will stand back
and let the elder reminisce as
objects are packaged, Ms. Bursack says. They’ll sympathize,
but not dissolve into tears, as
family members might.
Demand is expected to
grow even more, Ms. Buysse
says, as boomers themselves
continue to age in the coming
years.
“We’re still five to seven
years away from critical
mass,” she says. Right now,
she says, the oldest of the 79
million boomers are just 71.
The service isn’t cheap.
Some companies will charge a
set fee in advance, others an
hourly rate. Costs tend to range
from $40 to $125 an hour, depending on the region, according to Ms. Buysse. Ms. McMahon says her company typically
charges $65 to $75 an hour for
its services, which include arranging for the sale or removal
of unwanted items. Total costs
for each job typically are
$5,000 to $10,000, she says.
Move-in ready
Many companies in this
business provide a comprehensive service: first deciding
what to throw away, donate or
sell, followed by packing and
moving, holding estate sales
and preparing houses for sale.
Greg
Gunderson,
who
started Gentle Transitions in
Manhattan Beach, Calif., in
1994, says his company has ex-
Robot
Continued from page R3
Schwab says its advisers are
able to provide.
Schwab’s default assumption is that investors will
claim Social Security at full
retirement age. The company, however, says its advisers can identify claiming
dates designed to produce
the highest cumulative lifetime benefits.
JOSH EDELSON/AFP/GETTY IMAGES
UNITED INCOME
Chimneys were all that remained of some of the many homes destroyed by fire in Santa Rosa, Calif., last month.
If Natural Disaster Strikes, Be Ready
Three steps people should take ahead of time, just in case.
BY VERONICA DAGHER
WHEN A NATURAL DISASTER strikes, it
can wreak havoc on victims’ lives in ways
they might not have expected. These
threats are even greater for older people
living on a fixed income who may not
have the resources to recover from such
hardships.
In light of recent natural disasters, seniors may want to act now to protect
themselves against possible future losses.
Here are few simple steps to consider:
1.
Understand Your Insurance
Before a disaster hits, check your
homeowners- or renters-insurance policy
to see if you’re covered for “replacement
cost” or “actual cash value” for your possessions, says Kathy Stokes, senior adviser, financial resilience at AARP.
If you’re covered for replacement cost,
your insurer will pay the full cost of replacing an item with one just like it. If
you’re covered for actual cash value, the
insurer will take into account the loss in
an item’s value over time. That means an
$800 sofa that is four years old may have
no cash value, according to the insurer’s
calculations, she says. Seniors with this
type of coverage may want to set aside
added funds.
Be aware that homeowners and renters policies don’t cover damage from
flood or earthquakes. You may be able to
purchase earthquake coverage as an addon to a standard policy or as a separate
policy. Flood insurance generally is available only through the federal government’s National Flood Insurance Program for those living in certain
communities.
If you live in an earthquake-prone
area, consider having a licensed contractor check your chimneys, roof and foundation for stability, and identify where
your gas, electrical and water main shutoff valves are located. These lines can
separate from their connection points
during an earthquake, raising the risk of
fire, says Fran O’Brien, division president, North America personal-risk services group at Chubb Ltd. Some homeowners may want to consider automatic
seismic gas shut-off valves that can stop
the flow of gas when there is an issue.
Good home maintenance also can help
protect your property in the event of a
disaster, she says. Some 75% of trees that
fall during weather events suffer from
pre-existing and often correctable conditions, she says.
Trimming tree limbs to 15 feet off the
ground or one-third of the total crown
height (whichever is less) can help protect a home in a wildfire, she says.
Protect Paperwork, Valuables
You don’t want to have to scramble
to gather important paperwork after a
disaster hits, AARP’s Ms. Stokes says, so
scan financial, medical and identifying
documents now, so they’re available in
electronic form. Scan bank statements,
insurance policies and cards, your
driver’s license, passport and Social Security card.
Save this information on an external
hard drive or flash drive that you can
keep safe in a disaster-proof box, she
says. Be sure to password-protect the information.
Write a list of your doctors, their contact information and your prescriptions
and keep it in this box, as well.
A spokeswoman for the Federal Emer-
2.
gency Management Agency, or FEMA,
suggests setting aside emergency cash in
small bills to buy food, fuel or water in
case ATMs aren’t available.
If you receive federal benefits by paper check, request direct deposit
(www.godirect.gov) so you can continue
to receive payments if mail service and
banks are shut down, Ms. Stokes says.
Walk around your home and video all
of your items of value. Narrate as you go,
stating the brand, when you bought the
item and how much you paid, she says. If
your phone doesn’t have this capability,
write down this information and keep it
in your disaster-proof box.
3.
Create a Kit, Tell Your Family
A guide created by the American
Institute of Certified Public Accountants, the American Red Cross and the
National Endowment for Financial Education suggests creating an easily portable,
disaster-supplies kit to meet your needs
for at least three days and up to two
weeks. Items in this kit should include
water, nonperishable foods, batteries and
emergency-contact information.
Meet with family and friends to create
a disaster plan that includes if and how
you plan to evacuate. Ask about emergency plans in your community, and if
you receive home care, speak with your
case manager to see how he or she might
be able to help, the Red Cross says.
Finally, make a plan for your pets as
they usually aren’t permitted in emergency shelters.
Ms. Dagher is a Wall Street Journal reporter in New York and host of the Secrets of Wealthy Women podcast.
Email veronica.dagher@wsj.com.
Price: 0.5% to 0.8% (with
discounts for accounts valued at more than $500,000),
plus investment fees of 0.1%
to 0.25%.
Minimum investment: Financial plans and Social Security advice are free;
$10,000 for those services
plus investment management; $300,000 for everything in the lower tiers plus
a dedicated adviser.
Review: Ellen and Greg’s adviser, Ben Meirowitz, gave
them a 99% chance of having
enough to last until Greg is
97 and Ellen is 102, even if
they buy the $1.75 million
apartment. To maximize
their odds, Mr. Meirowitz
told them to delay claiming
Social Security until 70 and
live on IRA withdrawals in
the meantime.
United Income recommended that the couple invest the money they will
need for essentials, such as
food and housing, more conservatively than the money
they will need for luxuries
and health care.
To project the couple’s future spending, the company
used results from a national
study that finds, for example, that higher-income clients face smaller annual increases in health-care costs.
United Income avoids
long-term-care insurance because it believes the market
is unstable. To cover those
costs, Mr. Meirowitz suggested Ellen and Greg invest
money earmarked for health
care more heavily in stocks,
which have higher potential
returns.
When designing portfolios, United Income estimates the lifetime value of
clients’ Social Security benefits and—because those benefits are guaranteed—adds
them to the bond side of the
portfolio. To balance out that
higher bond allocation,
United Income advised the
couple to put 65% of their investment portfolio in stocks.
Pro: For clients who pay
0.8% a year, United Income
perienced 15% growth a year
over the past three years,
serving roughly 1,000 seniors a
year, with the average move
costing $3,000 to $5,000. Employees sort through everything and use a magnetic
floor-planning board to determine what the client’s new
space will be able to accommodate. They contract out for the
physical move, but at the other
end they unpack everything,
and even make the bed and
connect the electronics. Half of
Mr. Gunderson’s business now
comes from retirement communities that pay for part or
all of his company’s services
for new residents, he says.
Rita Coulter, 87, of Altadena, Calif., hired Gentle Transitions to help her move from
her 2,000-square-foot condo
to a 1,275-square-foot home in
a retirement community. Her
daughters had helped her with
an earlier move, she says, and
she didn’t want to burden
them again.
Employees worked with her
to determine what could be
accommodated at her new location—down to the number
of pots and pans—and helped
her donate or dispose of what
she wasn’t taking.
They unpacked everything
in her new home while she left
for a few hours. When she returned, she says, her paintings
were hung and crystal was
displayed as it had been in her
prior condo.
“When I walked in, they
had the lights on softly and
they had music playing,” Ms.
Coulter says. “My daughters
thought it was terrific.”
Ms. Halpert is a writer in
Michigan. She can be reached
at reports@wsj.com.
takes on such tedious tasks
as filing for Social Security
and Medicare, something the
other services don’t offer.
The company assigns clients willing to pay 0.8% a
year to a specific adviser.
You can create and update
a financial plan and talk to
an adviser up to four times
without becoming a client.
Con: Unlike the other services, United Income doesn’t
allow clients to link their
bank and other financial accounts to its software, so either the adviser or the client
must periodically update
those values manually.
VANGUARD PERSONAL
ADVISOR SERVICES
Price: 0.3%, plus investment
fees that range from 0.04%
to 0.12%
Minimum
$50,000
investment:
Review: Our adviser, who
identified himself only as
Bryan, gave Greg and Ellen a
94% chance of success, assuming both live to 100.
That’s premised on the idea
that Ellen and Greg can
spend slightly more than the
annual amount they will
need from their portfolio to
supplement Social Security
when the markets do well,
but will have to cut back a
bit when stocks decline.
Vanguard recommended
60% in stocks and 40% in
bonds. The adviser suggested
replacing non-Vanguard with
Vanguard funds in tax-deferred accounts, but maintaining the status quo in taxable accounts to avoid
triggering capital-gains tax
bills. (Vanguard says clients
who want to retain existing
funds can do so.)
To maximize the couple’s
lifetime Social Security benefits, Bryan advised the lower
earner, Greg, to file at 66, so
Ellen can claim a spousal
benefit while delaying her
own benefit until age 70.
Pro: Users don’t have to decide whether to become a
client until after they review
the financial plan.
Vanguard assigns clients
with $500,000 or more to a
dedicated adviser
Con: None that were immediately apparent.
It’s important to note that
robo-advisory services aren’t
for everyone. People with
complicated needs or who
need or want a lot of handholding may be better off
with independent advisers.
Ms. Tergesen is a reporter
for The Wall Street Journal
in New York. Email her at
anne.tergesen@wsj.com.
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.
Monday, November 13, 2017 | R5
JOURNAL REPORT | ENCORE
The Psychological Benefits of Writing a Memoir
BY LISA WARD
IS IT WORTH writing a memoir if no one will ever read it?
Millions dream about spinning their life story into a
best-seller. Most never get
past the dreaming part, much
less the first chapter.
But there are potential rewards other than riches and
fame for those who try. According to psychologists and
researchers, writing a memoir—even just for personal
consumption—can help the author review and make sense of
his or her life, come to terms
with traumatic events and foster personal growth.
In fact, some of the therapeutic benefits may be lost if
the writer thinks about too
large an audience—or even a
readership greater than one.
The story can become less authentic. And there are other
potential pitfalls to writing
your life story. Writers can be
thrown into despair if they
have trouble reconciling past
failures or placing traumatic
events into a larger context.
“It really depends on the
type of stories people tell to
make sense of their lives,” says
Dan McAdams, a psychology
professor at Northwestern University. People who can construct cohesive life narratives—where
there
are
common threads and one event
leads to the next—are likely to
benefit from writing a memoir,
he says, while those who view
their lives as a series of random, unrelated events are not.
His research has found that life
narratives are especially beneficial if they focus on redemption and overcoming adversity.
Positive light
In a memoir by Pencie
Huneke, two key themes are
resilience and gratitude. Now
84 years old and living on a
barrier island near Venice,
Fla., Ms. Huneke raised her
five daughters alone after her
husband left.
Her memoir describes the
“blur of misery” she felt in the
early days of their rupture. But
her story, Ms. Huneke now
says, ultimately puts the experience in a positive light: She
made close friends, enrolled in
a financial-management course
and met the “love of her life.”
She also forgave her ex.
“He and I have actually become friends. How lucky for all
of us,” she wrote.
The act of writing about
traumatic or difficult events
can reduce stress, lessen depression and improve cognitive functioning, according to
researchers. Several studies
have even shown such writing
to improve the function of the
immune system.
Psychologists believe that
by converting emotions and
images into words, the author
starts to organize and structure memories, particularly
memories that may be difficult
to comprehend and accept.
“You can’t simply dump an
entire experience on a piece of
paper,” says Joshua Smyth,
distinguished professor of
biobehavioral health and medicine at Pennsylvania State
University. Through writing,
he says, the memory of the experience can be broken down
into small parts, allowing the
event to be more easily processed and then laid to rest.
A hidden death
Susan Mayall, now 84 and
living in Livermore, Calif., says
she tried for years to write
about her childhood in Britain
during World War II, years
that included frequent German
bombing raids on her neighborhood. Much of her struggle,
she says, involved coming to
terms with her mother’s behavior. Early in the war, in
ZACK WITTMAN FOR THE WALL STREET JOURNAL
Even if nobody ever reads the
book, it can help people make
sense of their lives
Pencie Huneke refers to her memoir as ‘an exercise of self-affirmation.’
1941, Ms. Mayall’s father, an
interpreter in the Royal Navy,
died at sea, but her mother
never spoke of his death to the
children or otherwise acknowledged it until the war ended.
Ms. Mayall shared early
drafts of her memoir with her
brothers, who objected to her
harsh evaluation of her
mother. “I struggled all my life
to understand my mother’s reactions,” Ms. Mayall says.
What finally put things in
perspective, she says, was
writing about the moment her
mother read the letter from
the Royal Navy about her husband’s death.
Ms. Mayall in her memoir
describes seeing the letter,
without explicitly knowing at
the time what it said, and witnessing her mother’s reaction:
“She tears [the letter] open,
and starts to read. Then she
leans forwards and her hands
go up over her face. She’s
shaking—I can feel her.”
Ms. Mayall says she developed more empathy for her
mother as she continued to
work on the memoir over the
years. In the final version, she
acknowledges her mother’s
bravery and describes in detail
what it was like to raise four
children on a meager income
in wartime conditions.
When writing about past
traumas, the people who gain
the most from the experience
are those who tend to acknowledge their own problems
but can also see other people’s
points of view. Over the course
of writing, their general perspectives evolve, says James
W. Pennebaker, a psychology
professor at the University of
Texas at Austin. Making new
connections between events in
the writer’s life is key, he says.
There are risks. Writing to
uncover a deeper meaning in
one’s life often requires brutal
honesty or authenticity, a sort
of self-disclosure that could either be hurtful to other people
or cast the author in a negative light. If a writer starts repeating the same topic incessantly or becomes increasingly
angry and bitter, it is best to
stop, Dr. Pennebaker says.
Some such feelings can’t be
helped. “Writing about upsetting experiences can provoke
negative emotions,” says Dr.
Pennebaker. “It’s much like going to a sad movie. Most people report getting back to normal in an hour or so. If a
person is living with a nega-
Preparing your family to nurture a legacy
is as important as preparing to pass it on.
We call a realization like this an Unlock.
tive experience, they are probably feeling bad much of the
time. The writing helps to get
them out of that cycle.”
Writing a memoir can also
help authors re-evaluate how
they want to live, says Susan
Krauss Whitbourne, professor
emerita of psychological and
brain sciences at the University of Massachusetts Amherst. The exercise will sometimes reveal to the writer
patterns of behavior that
were—or are—harmful.
Past battles
When Paul Wortman, professor emeritus of psychology
at Stony Brook University in
New York, started analyzing
and writing about his life and
career, he says he discovered
that he had a problem with authority figures. His short temper and past battles with department chairs, he says, were
the product of his relationship
with his father. Dr. Wortman
swore to change his ways.
He ended up revising his
memoir at his wife’s request,
after she read it and became
uncomfortable with his idea of
sharing it with an extended
group of friends. Through
careful editing, Dr. Wortman
says, the message stayed the
same, but some of the details
were left out.
Making changes based on
who will read the finished
product reveals another truth
about memoirs: There is a
huge difference between writing a memoir for yourself and
writing it for an audience. By
writing for others, the author
may be tempted to omit details or even change the story,
compromising the process for
the final product. Also, it may
be disappointing if very few
people take the time to read
the memoir.
Still, sharing a memoir in
limited circles can be therapeutic, especially if there is a
receptive audience. Sharing
can strengthen social ties and
help friends and family members understand who the
writer is and how he or she
came to be that way.
The process can also help
validate the writer’s experiences and even break ageist
stereotypes, says Susan Bluck,
a psychology professor at the
University of Florida. A child
or grandchildren may be surprised to learn their grandparent hitchhiked across the
country, Dr. Bluck says, adding,
“It feels good when someone
is excited about your story.”
Ms. Huneke, in the introduction to her memoir, discusses why she chose to leave
a written legacy for her immediate family. Her memoir, beyond a few excerpts, hasn’t
been shared with anyone else:
“Perhaps this is an exercise
of self-affirmation, that one’s
existence has been worthwhile
and possibly even memorable,”
she wrote. “Or does it have a
higher purpose, to fill in gaps
for future generations who, one
hopes, might care and even enjoy it? Then again, maybe it is
only a desire to explain to one’s
children just why one is the
way one is. It might even be interesting for them to identify
characteristics in themselves
they may have inherited!”
Ms. Ward is a writer in
Mendham, N.J. She can be
reached at reports@wsj.com.
At Wells Fargo Wealth & Investment Management,
our expertise is identifying insights that better
enable our clients to look at their situations
differently, to help preserve and grow their
family’s wealth. It’s led us to become one of the
largest investment and wealth management
providers in the country.
wellsfargo.com/Unlock
Investment and Insurance Products: NOT FDIC Insured ► NO Bank Guarantee ► MAY Lose Value
Wells Fargo Wealth and Investment Management, a division within the Wells Fargo & Company enterprise, provides financial products and services through bank and brokerage affiliates of Wells Fargo & Company. Brokerage products and services offered
through Wells Fargo Clearing Services, LLC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. Bank products are offered through Wells Fargo Bank, N.A. © 2017 Wells Fargo Bank, N.A. All Rights Reserved.
CAR061705329
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.
R6 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
The Hidden Disease That Affects the Middle-Aged
Ailments of the liver are on the rise, but many people aren’t even aware they’re at risk
LIVER DISEASE IS on the rise
among middle-aged Americans, but many don’t know
they have it—or that they
could develop it.
The liver performs critical
jobs, including cleaning toxins
from the blood, storing energy
and nutrients, digesting fats
and processing medications,
alcohol and food. But a host of
ills and abuses can wreak
havoc on the liver, from heavy
drinking and infection with
hepatitis B or C to a scourge
known as fatty-liver disease
linked to diabetes and obesity.
Over time, the liver can become fibrous and scarred,
eventually developing cirrhosis, the replacement of normal
tissue with hard tissue. The
damage that occurs increases
the risk for liver cancer.
A September report by the
Centers for Disease Control
and Prevention found that
death rates for chronic liver
disease and cirrhosis rose 31%
among those age 45 to 64 between 2000 and 2015. And
cases of liver cancer rose more
than 20% in the U.S. between
1990 and 2015.
Yet liver diseases often
have no symptoms until they
are far advanced, making it all
the more important to identify
and test those at risk.
“With baby boomers, we
may focus on heart disease,
dementia and cancer, and
don’t always think about the
liver,” says Anna S. Lok, director of hepatology at the University of Michigan and president
of
the
American
Association for the Study of
Liver Diseases.
There are new drugs that
cure hepatitis C, and a number
of treatments are in development for advanced fatty-liver
disease. Getting and staying
sober can reverse liver damage caused by alcohol, and losing weight can reverse damage
caused by nonalcoholic liver
disease.
“The liver is very forgiving
and can bounce back even in
early stages of cirrhosis,” says
Dr. Lok. Once cirrhosis is advanced, however, the only option is a liver transplant,
which can be hard to come by.
There are new treatments for
liver cancer if diagnosed early,
so screening cirrhosis patients
for liver cancer is important,
she says.
STAURT BRADFORD
BY LAURA LANDRO
Testing barriers
According to a study published last month in JAMA Oncology, the rise in liver cancer
in the U.S. is partially due to
hepatitis C infection in baby
boomers. An estimated 1 in 30
have been infected with the virus, the second-leading cause
of cirrhosis. Hepatitis C was
often transmitted during medical treatment before infection-control procedures were
widely adopted, or from blood
transfusions before 1992,
when screening for the virus
virtually eliminated such risks.
It also is spread among intravenous-drug users, even with
just one use, and from unsterile tools at tattoo parlors.
In 2012, the Centers for
Disease Control and Prevention recommended a one-time
hepatitis C test for all adults
born between 1945 and 1965.
But fewer than 30% have actually been tested, according to
estimates. Doctors may fail to
ask patients about past medical procedures or drug-use
history, and patients may either be unaware of possible
medical exposures or be hesitant to mention risky behavior
such as intravenous-drug use.
To eliminate such barriers,
Dr. Lok and colleagues have
designed an electronic-healthrecord alert that prompts primary-care physicians to perform such screenings if
patients who are baby boomers haven’t yet been diagnosed
or tested. In a study published
in the journal Hepatology in
September, the team said hepatitis C testing rates increased
fivefold, to 72% among those
born between 1945 and 1965,
in the year after the electronic
alerts were launched. Of 53
newly diagnosed patients, 11
had advanced fibrosis or cirrhosis, 20 started treatment
and so far nine have been
cured.
The first sign of liver disease may be elevated liver en-
Liver Check
One in 30
Baby boomers has been
infected with hepatitis C,
and most don’t know it.
20%
of liver cancer in the U.S.
is caused by hepatitis C.
Having hepatitis B
also raises the
risk for liver cancer.
About 100 million
individuals are estimated
to have nonalcoholic
fatty liver disease, which
can lead to inflammation,
scarring and cirrhosis.
Sources: Centers for Disease Control and
Prevention, PLOS One, U.S. National Health
and Nutrition Examination Survey, Robert
Wood Johnson Foundation
THE WALL STREET JOURNAL.
Ankle Replacements Take Off,
As Devices Appear to Be Durable
zymes in a blood test. Elliot
Tapper, an assistant professor
at University of Michigan who
treats patients at its clinics
and at the Ann Arbor VA hospital, says issues related to alcohol, obesity and diabetes are
the most likely cause, followed
by hepatitis B or C. Tests for
such conditions should be
used first, including an ultrasound of the liver to look for
fatty-liver disease. If patients
disclose they drink excessively
or use intravenous drugs, or
are taking a drug or dietary
supplement that can cause
liver damage, the need for
more invasive tests falls
sharply, Dr. Tapper says.
Fatty livers
Fatty-liver
disease,
a
buildup of fat in the liver, affects as many as 100 million
Americans, especially those in
their 40s and 50s, but also
strikes children and young
adults. The disease can lead to
a progressive form known as
nonalcoholic steatohepatitis,
or NASH, which can cause
scarring that leads to cirrhosis
and increases the risk of heart
disease, Dr. Tapper says. Genetic variations may make
some people more vulnerable.
While liver biopsies are still
used to definitively diagnose
liver diseases and determine
their stage, noninvasive tests
using different types of scans
and imaging technology such
as MRI are becoming more
widely used. A 2015 study of
100 patients, using such technology, showed that almost
two-thirds with Type 2 diabetes have evidence of nonalcoholic fatty-liver disease, while
more than 7% have advanced
fibrosis. Study author Rohit
Loomba, director of hepatology and a research center devoted to nonalcoholic fattyliver disease at the University
of California, San Diego, says
follow-up studies aim to determine whether such technology
is cost-effective for wide use.
Until such screening methods are better established, he
says, doctors should assess
their patients with classic risk
factors for fatty-liver disease—those in their 40s and
50s at high risk of heart disease because of obesity and
diabetes.
“If you are overweight or
obese and have Type 2 diabetes and are 50 or older, you
need to ask your primary-care
doctor if you might have fattyliver disease,” Dr. Loomba advises.
Ms. Landro is a former Wall
Street Journal assistant
managing editor. Email her
at reports@wsj.com.
SECOND ACTS
A TIME TO HELP PEOPLE,
NOT ORGANIZATIONS
A new study offers encouragement, but questions remain
Age: 61
Hometown: Montclair, N.J.
Primary career: Executive coach,
organization development expert
Current path: Clinical psychologist
Why this path: “It was hard for
me to make organizational needs
be the primary driver and not
meet the individual’s needs.”
ANKLE REPLACEMENTS, a new kid
on the block compared with knee and
hip replacements, used to be deemed
a risky bet for patients under 65.
But as doctors steadily gain confidence that the replacements will
last, Carrie Kvitko, 60, from Columbus, Ohio, is one of a growing group
of younger patients to sport a new
ankle, made of metal and plastic and
bending nearly as well as the original. In September, a year after her
surgery, Mrs. Kvitko went on vacation to Magic Kingdom Park in Orlando and climbed 116 steps to the
top of the Swiss Family Tree House.
“I’m young,” she says. “I want to
be able to do things. I don’t want to
give that up.”
STAR
BY JULIE HALPERT
Fast Growth
Nearly 10,000 total-ankle-replacements will take place this year in the
U.S., about double the level in 2011,
according to estimates from SmartTRAK, an online market-data system
from BioMedGPS LLC of Irvine, Calif.
That growth is due in part to
mounting evidence over the past
several years that a particular device
is long-lasting. Most recently, at a
scientific meeting in September in
Lisbon, Duke University researcher
James A. Nunley presented data on
Stryker Corp.’s Star ankle. The finding: For a group of patients who
took part in a trial before the device
hit the U.S. market in 2009, 88% of
58 devices were still in place 10 to 19
years after implantation.
There are limits to how much ankle replacements can replicate
healthy ankles. They aren’t meant to
take running or jumping, says Lew
Schon, an associate professor at
Johns Hopkins School of Medicine
and co-designer of a replacement ankle from Zimmer Biomet Inc., in
Warsaw, Ind. You can run and jump,
but the unit will wear out faster. It is
possible to ski, though, Dr. Schon
says, since skiing has less impact on
an ankle than, say, jumping.
Recipients also could need followup surgery. A study presented last
year at the American Orthopedic
Foot & Ankle Society meeting in Toronto found that 25% of 761 patients
needed some type of repeat surgery
during a 15-year period, such as replacing the plastic parts of the device, which tend to wear out faster
than the metal components.
“Getting a total ankle [replacement] is like getting keys to a car,”
says Gregory Lundeen, a Reno, Nev.,
orthopedic surgeon who trains sur-
Data showing the durability of the Star ankle replacement, above, from
Stryker Corp., has helped spur more ankle-replacement surgeries.
geons in implanting the Star. “You
have to have it serviced on a regular
basis.”
While ankle replacements typically occur later in life, the cause
isn’t usually arthritis from simple
wear and tear, as it is for hip and
knee replacement. Ankle arthritis is
usually the result of past trauma,
such as a broken ankle, says Gregory
C. Berlet, a surgeon in Westerville,
Ohio, and design consultant to Dutch
medical-device company Wright
Medical Group NV, which sells three
replacement ankles in the U.S.
Patients often live with ankle pain
for decades, until the cartilage layer
fully wears down, and medication or
rest no longer offer relief. The standard treatment has long been fusion,
or screwing the ankle bones together. That surgery typically lasts a
lifetime, but the loss of motion puts
strain on other joints in the foot—
often making them arthritic, says
Razi Zaidi a researcher at the Institute of Orthopaedics and Musculoskeletal Science at Royal National
Orthopedic Hospital in London.
The cost of total ankle replacements varies widely, from $19,000 to
$30,000 or more. Insurers generally
cover the procedure, minus deductibles, says Thomas Loring, senior director of research and development
at Stryker, in Kalamazoo, Mich.
As more newly minted ankles are
implanted, surgeons caution that
popular new products, such as Zimmer Biomet’s, and Wright’s Infinity,
both of which hit the U.S. market in
2014, don’t yet have long-term data.
“A younger patient, 50, early 60s,
wants to know how long does it last?
You have to look them straight in
the face and say, ‘We have no idea,’ ”
says Christopher E. Gross, assistant
professor of orthopedics at the Medical University of South Carolina in
Charleston and co-author of the paper on repeat surgeries that was
presented in Toronto.
Dr. Gross has no link to any company, but says he uses mostly
Wright’s Infinity, because inserting it
requires less bone removal than the
company’s older model, the Inbone.
As a ballpark estimate, he tells patients that 75% of them will probably
still have their new ankle in 10 years
and be happy with it.
Replacing replacements
When an ankle replacement fails,
it is often because it loosens from
the bone, causing gradually increased pain, surgeons say. The patient is in for a more difficult operation with a longer recovery than the
first go-round because bone was removed during the original surgery
and it is often necessary to graft
new bone to replace it.
Options for patients with failed
implants are growing. In July,
Wright came out with Invision, a device intended for revision surgeries.
Zimmer Biomet offers revision devices custom-made to patient specifications, says Brad Quick, general
manager of the company’s foot-andankle unit. Stryker is working on a
revision product, Mr. Loring says.
Miss Johannes is a writer in
Boston. Email: reports@wsj.com.
Fifteen years ago, Randy Simon had a realization that caused her to
give up one successful career and start another.
Dr. Simon, formerly an executive coach and organization-development
expert, had just helped a nerve-wracked executive overcome some performance issues, and thus keep her job. But afterward, something kept
nagging Dr. Simon, until it finally hit her. As an executive coach, she
says, she was helping the woman stay in a job that made her unhappy.
If, instead, she had been the woman’s therapist, she would have urged
her to find a different job.
That, Dr. Simon says, is what finally caused her to decide, after years
of toying with the idea, to become a clinical psychologist. She realized
that her heart lay in helping individuals, not organizations.
Dr. Simon, 61 years old, now sees patients in Montclair and Summit,
N.J. She doesn’t regret her first career. She was always “fascinated by
figuring out human behavior and how to make changes.”
The problem-solving skills she developed along the way, and her expertise in group dynamics, have proved essential in leading therapy
groups, she says.
She earned her M.B.A. in 1979, a time when few women took such a
path. During the 20-some years that followed, she had several executive
positions in human resources at Fortune 500 companies, including Viacom. She left Viacom after it merged with CBS in 2000. She then
started her own consulting business as an organization development
specialist and executive coach.
It was during this period she had her epiphany about wanting to help
people more than organizations. A career in psychology was something
she had thought about since graduating from college with a double major in psychology and art therapy.
So, flush with savings and master of her own schedule, she first completed a post-master’s certificate program in art therapy. Then, in 2006,
she enrolled in a full-time Ph.D. program, and in 2011 received her doctorate in clinical psychology.
“After years of organizational work, I wanted to find ways to improve
quality of life for individuals,” Dr. Simon says.
Many of her patients now are teens suffering from depression. This
work, she says, is one of the most gratifying parts of her new career.
“The teenage years are tumultuous, but they are also a time of figuring out personal values and what is important,” she says.
“It’s disheartening to see what it’s like for someone in high school today,” Dr. Simon adds. Success for teens is often defined as the caliber of
the college that accepts them, she says, and this has created an epidemic of anxiety and depression among both teens and their parents.
When Dr. Simon started her clinical training, “it was uncomfortable at
times to be in this trainee position,” she says.
But ultimately, she says, her life experience, especially being a parent—her children are now 21 and 24—has made her a better therapist,
while working with adolescents has helped to make her a better parent.
Though she found corporate work rewarding, Dr. Simon says, “I didn’t
love what I do. What I’m doing now, I really love.”
Second Acts looks at the varied paths people are taking in their 50s and
beyond. The profiles are by Julie Halpert, a writer in Michigan. You can
reach her, and let us know how you’re staring over, at reports@wsj.com.
MICHAEL GREENBERGER
Randy Simon
BY LAURA JOHANNES
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.
Monday, November 13, 2017 | R7
The market
for good
advice is
booming.
There’s a difference between having information and knowing what to do with it.
At Merrill Lynch, we can help. Our advisors work with you to create a long-term financial
strategy that’s built around your life and your priorities. That way you’re ready for
whatever comes next.
Learn more or talk to an advisor today.
ML.com I 888.339.9417 I @MerrillLynch
Investing involves risk. Products are offered through Merrill Lynch,Pierce,Fenner & Smith,Incorporated,Member SIPC.
Investment products:
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
© 2017 Bank of America Corporation. All rights reserved. ARKHFLWQ
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.
R8 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
Dementia’s Tragic Toll on Families
The disease often pits siblings against each other. But it doesn’t have to.
WHEN A FAMILY member suffers
from dementia, we tend to view it as
an individual tragedy. But too often
this wrecking ball of a disease takes
a toll on the entire family.
Even under the best circumstances—with state-of-the-art care,
well-intentioned caregivers, and sufficient social and financial resources—the trajectory of most
forms of dementia is difficult to control. It’s often a chronic disease with
symptoms that will only get worse.
Discontinuities in care are common
in a health-care system that is excessively siloed and lacks sufficient geriatric specialists.
In the face of these challenges,
the families of individuals with dementia struggle to maintain emotional equilibrium along the way.
That’s especially true when the
spouse of the afflicted has already
died, leaving decisions about care in
the hands of the children. That’s
when this disease of one damages
the well-being of many, sometimes
turning close and loving siblings into
estranged and shattered combatants.
The tragedy here is that it doesn’t
have to be this way. If families understand the perils, they can navigate them without imploding.
Economic and emotional toll
Those perils, of course, are many.
Families of persons with dementia
spend billions of dollars—thousands
a month per household—on health
care, supplies and paid caregivers.
The average unpaid caregiver, the
Alzheimer’s Association says, works
almost 22 hours a week on the person’s behalf. And, in terms of total
cost, none of this takes into account
lost wages, lessened productivity
and decreased spending on other
household needs and luxuries.
Yet the economic toll often pales
next to the emotional one.
I have seen people, for instance,
who were simply not in a position to
take care of a parent with dementia.
Maybe they had a young family, or
were just starting a career. They
simply lacked the time and emotional energy to care for an aging
parent. So, perhaps after trying for a
while, they send the parent to another sibling. They are relieved of
the burden, but they are racked with
guilt.
Other children often relish the opportunity to organize a parent’s care,
finding meaning in filial duties. But
they can also find themselves increasingly frustrated and resentful
MARGARET RIEGEL
BY MARC AGRONIN
when siblings critique their caregiving approach.
Meanwhile, some children become
enraged and depressed as they
watch their parents go through
changes that they struggle to believe
are true. They might even reject the
dementia diagnosis and medical interventions.
Until a parent’s illness, siblings
with different personalities rarely, if
ever, have to work on a common
project. The family dynamics often
are stabilized by a history of respect
and even admiration for one another—from afar. In addition, each
child has his or her own private connection with a parent.
These dynamics—among siblings
and between siblings and parent—
are at risk of breaking down in the
face of dementia. There is no leadership or intermediary to gratify individual needs or resolve conflicts. It
is each man or woman for himself or
herself.
This emotional quagmire isn’t always helped by the full congress of
specialists, advisers, care managers
and in-the-trench aides needed to
care for an aging person with dementia today. As we live longer and
healthier lives than previous generations, we also accumulate a larger
and more complex array of physical
and mental ailments that need attention. We can preserve the body for
Spillover Effects
The effects that unpaid caregiving can
have on the caregiver's other job* are
greater when the person under care has
Alzheimer's or other dementias,
compared with cases in which the
person under care has other issues
For people with Alzheimer's and
other dementias
For other people
Went in late, left early or took time off
57%
47%
Went from full to part time or
cut back hours
18%
13%
Took a leave of absence
16%
14%
Gave up working entirely
9%
5%
*Changes at their other work at any time since they
began caregiving
Source: Euromonitor
THE WALL STREET JOURNAL.
much longer than we can preserve
the mind.
Gone are the family doctors who
know the whole family across generations and manage all health care.
They’ve been replaced by competing
systems of care with multiple clinicians who each manage their own
piece of the person.
Gone, too, for the most part are
multigenerational households with
strictly defined roles and a surrounding family or community invested in care.
There is simply no way to remedy
these missing pieces for caregiving
families who are, more often than
not, spread across the country.
Navigating the journey
So, all that is the bad news. And
it’s bad, indeed: This is a terrible
disease that can wreak havoc on all
those who must deal with it.
Fortunately, it doesn’t have to be
as bad as it often is. There are several important strategies that, when
implemented early and consistently,
can vastly improve the well-being of
caregivers individually and as a family unit.
First, the most basic need for
families is to know what they are
dealing with in terms of the diagnosis and any associated conditions.
This requires a comprehensive baseline assessment by an expert in de-
mentia, and regular monitoring by
both medical and behavioral specialists. This information enables everyone to have the same understanding
of the big picture. It puts everybody
on the same page as far as knowing
what exactly is going on.
Second, the caregiving family
needs to meet early on and establish
basic goals and ground rules. What
sort of care do they envision over
time, and what can they afford? How
will they divide responsibilities now,
and what are contingency plans if
someone can’t sustain their role?
Too often, families plunge into caregiving with differing perspectives on
their parent’s diagnosis, and they
never coordinate a common plan for
the type of care and the logical roles
that each could play.
A third and crucial step is to assign a point person for coordinating
daily care and decision making.
Sometimes, a third party such as an
aging-life-care professional needs to
be included when family members
do not live near the afflicted person,
or when differing perspectives
would benefit from both an independent guide and a mediator for disputes. In extreme cases, this person
can be court-appointed.
Throughout this entire process,
the children must try their best to
share the burden of care and commit
themselves to subjugating personal
needs and agendas to the overall
care needs of the affected person.
This goal is easier said than done
when there are longstanding ethical,
financial or other disagreements
that become amplified by the loss of
parental authority.
Such strategies are critical, since
caregiving is a long journey—eight
to 10 years on average—and requires
constant learning, renewal and reinvention to survive. Alzheimer’s disease and every other form of dementia bring heartbreaking situations,
but also the opportunity to bring
families together in a common purpose, and to fulfill an endless debt to
a parent that most children want to
accomplish.
The key is for families to understand that core emotional need and
to realize that a win-win approach is
possible, resulting in relationships
that are closer, healthier and more
resilient—not in spite of their parent’s illness, but because of it.
Dr. Agronin is a geriatric psychiatrist at Miami Jewish Health, and
the author of the forthcoming book
“The End of Old Age: Living a Longer, More Purposeful Life.” He can
be reached at reports@wsj.com.
From the Frozen, Costly North to the Warmth of Brazil
The author always wanted to
live in a place that wasn’t cold.
He and his wife have done that.
EVEN AS A teenager in Canada in the 1970s, my objective
was to retire early in a warm
country. Canada is just too
cold and too expensive.
After decades of working
mostly as a merchant ship’s
engineer on the brutally cold
North Atlantic Ocean, I
achieved my goal last year. Retirement in Brazil began for
me at the age of 56.
My initial reaction to life in
Brazil, long before I moved
here for good, was mixed. Although I had a leg up on others, because my wife is a Brazilian national, I experienced
real culture shock. While everything in Canada appears to
be in order, Brazil is very
much the opposite; it’s a little
chaotic at times.
For example, in the small
city where we live, the streets
are crammed with all sorts of
vehicles, everyone making
their own rules regarding navigation and road signals. We’re
in cowboy country, with big
cattle ranches in the area. Lots
of farmers, too. So it’s common to see a few cowboys on
horseback around town, or a
donkey-powered wagon full of
watermelon driven by a few
farm children.
It took a while to assimilate. But soon the good far
outweighed the bad. I became
hooked on Brazil.
We rented an apartment for
a few years, while traveling
back and forth to Canada. But
in 2014, we purchased our
modest home in Nanuque, a
city of some 40,000 people
about 400 miles north of Rio
de Janeiro. Now we are here
permanently.
100 miles
Brasilia
100 km
BRAZIL
NANUQUE
Sao Paulo
Atlantic
Rio de Janeiro Ocean
Affordable homes
Becoming a Brasileiro by
marriage was easy. But there
are other ways to become a
permanent legal resident. Buying a home is just one possibility. Homes in Nanuque are
reasonably priced, very affordable for the average North
American ready to retire.
Our home, near the center
of town in a pleasant, safe
neighborhood, cost about
$100,000. We have three bedrooms and two full bathrooms,
a room to receive guests at the
front door, a living room, dining room and a large kitchen.
Our property is about 50 feet
by 130 feet, a large lot by local
standards. Property taxes also
are a fraction of what we paid
in Canada—about $80 a year
here, compared with 20 times
as much in Canada.
Lots of forms and certified
copies were required for immigration. But with the help of
the Brazilian Embassy in Canada, I got my Registro Nacional de Estrangeiros, or RNE,
the equivalent of a permanent
resident visa. Most of the process was simple. Traveling to
the government offices was
the biggest challenge; driving
is dangerous here.
Where we live, the climate is
exceptionally comfortable, with
KEVIN CORKUM
BY KEVIN CORKUM
Nanuque features a large stone hill that locals refer to as “Pedra do Bueno,” or “Stone of Good.”
temperatures averaging about
86 degrees during the day and
68 degrees at night. Only during the rainy seasons do we
consider wearing jackets and
warmer clothes. For the most
part, it’s shorts and T-shirts.
And if gets too hot, we head to
the beaches of Bahia, less than
two hours away by car.
Cheap eats
Nanuque is in the highlands
of the Brazilian state of Minas
Gerais, divided by a river and
surrounded by a mix of forest,
rolling hills and plains dotted
with sugar-cane farms and
cattle ranches.
The city has the hustle and
bustle of business at its center. Very small shops make up
the bulk of commerce. My
cooking hobby brings me to
the grocery stores daily, my
carpentry hobby to the hardware stores. The variety of everything is limited, by North
American standards, but we
find most everything we need.
(Among the exceptions: the
turnips I always used to in-
clude in my classic Canadian
beef stew and the sour cream
I love on baked potatoes.)
Balancing a budget is much
easier in Brazil than in Canada. We live very well here on
about $1,550 a month. Our
electricity costs average less
than $60 a month. We spend
just over $300 a month on
groceries, less than half of
what we spent in Canada. We
buy eggs from a local delivery
truck, 30 for about $3. Since
this is beef country, we have
access to fresh beef every day.
We tend to buy fillet mignon
cuts, for about a quarter of
what they cost us in Canada.
We often have barbecues with
neighbors on Friday nights.
The local grocery stores are
full of fresh vegetables and
fruits year round. Most homeowners have some sort of fruit
trees and gardens. Plant
growth here is amazing—fast
and consistent. Between August and March, we get a
bucket full of tasty fresh mangoes from our tree in the
backyard every day.
Out and about
The climate offers constant
opportunities for outdoor activity. My morning begins with
yoga on the backyard deck,
under the mango tree. By 7:30
the sunshine reaches the deck,
warming and refreshing. On
days with nothing else to do,
we might go to the local country club, where we use the
sauna and pool; the club costs
about $30 a month. Or we
might pay a visit to the public
exercise track.
We enjoy gardening in our
backyard. I’m expecting a nice
crop of spicy peppers in a few
weeks. We are avid members
of the radio-controlled modelairplane club, and enjoy flying
from a hilltop overlooking the
city where the view is breathtaking. We also enjoy brisk
evening walks through the city.
It has been easy to make
friends. Having a routine for
social activities has helped.
The flying club meets on Sunday. I go to the sauna Friday
night with a regular group,
usually followed by a barbe-
cue. We’ve made many friends
through the local church.
Sometimes I miss my family
in Canada—my father is too
old to travel this far and my
sisters haven’t visited here
yet. But we talk regularly, and
we got used to being separated physically during my 37
years as a sailor. My wife has
family here, so she is more
closely connected, and her
family has embraced me.
Being active, eating well,
living a stress-free life is the
goal. There is a free medical
clinic in town or, for those who
can afford it, cash-pay access
to most medical facilities. The
free service is slow, the cashpay is very fast and reasonably
priced. An annual blood test
costs about $30. Analysis of
the results by a doctor costs
the same amount. Surgery to
remove some moles from my
chest cost about $275. My wife
has a medical plan that covers
the majority of her needs. For
$100 a month she has limitless
access to immediate, good
health care. I haven’t had the
need for a plan.
We get around town by
bus—they are slow but reliable—or in our car. But highway travel by car in Brazil is
very dangerous; the roads are
narrow, with many commercial
trucks. So we tend to avoid
traveling by car for fun, and
just limit our road trips to
what is required.
Every day I wake up here I
feel successful. I made it to
paradise, just like I wanted to
as a teenager. After all those
years of hard work on a freezing cold ocean, I’m happy in
my simple—and warm—life.
Mr. Corkum is a writer in
Nanuque, Brazil. He can be
reached at reports@wsj.com.
If you have retired abroad
and are interested in writing
a column about your
experience, write to us at
reports@wsj.com as well.
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.
Monday, November 13, 2017 | R9
JOURNAL REPORT | ENCORE
The Best Books of 2017 About Healthy Aging
Great reads for keeping the mind, body and spirit engaged.
And maybe making a little money as well.
BY DIANE COLE
go and how to get there. Browse
with Post-it Notes at hand.
THE BEST PRESCRIPTION for
healthy aging: Keep on moving. That
message runs through this year’s
best books for the years ahead, with
recommended pathways that actively engage mind, body, spirit or
any combination thereof.
Ageless Soul: The Lifelong Journey Toward Meaning and Joy
By Thomas Moore; St. Martin’s Press
For psychotherapist and best-selling author Thomas Moore, aging
isn’t just a biological process but a
spiritual passage. To him, aging positively means allowing yourself to be
affected by even the most melancholy losses. “You have to have reflected on life, including its downside, before you can start crafting a
life that is subtle and wise,” he
writes. He includes lessons learned
from his patients over a 40-year career, and cites a wide range of writers and philosophers as he leads
readers through what he sees as five
phases of aging: “feeling immortal;
first taste of aging; settling into maturity; shifting toward old age; and
letting things take their course.”
Though his tone will strike some as
touchy-feely, Mr. Moore’s message is
resonant.
AgeProof: Living Longer Without Running Out of Money or
Breaking a Hip
ing with the infirmities of old age,”
he writes. He urges readers to set realistic goals that focus on functional
fitness: the mobility, strength, balance and flexibility to comfortably
go about your daily life. He provides
tips for starting a fitness routine
that suits your needs and abilities,
checklists for finding personal trainers, and clear instructions and illustrations for exercises that he suggests become core parts of your
fitness program.
Just Move! A New Approach to
Fitness After 50
By James P. Owen; National
Geographic
By the time he turned 70, former
Wall Street executive and admitted
couch potato James P. Owen was suffering from severe lower back pain,
two bum knees, a faulty rotator cuff
and a shuffling walk that made him
look like a “poster child for looming
old age.” Rather than feel defeated,
though, he set about getting fit. In
this direct, practical and inspiring
book, he shares his lessons. “Getting
fit is nowhere near as hard as deal-
Four Seasons in a Day: Travel,
Transitions and Letting Go of
the Place We Call Home
By Deborah L. Jacobs; DJWorking
Unlimited Inc.
Whether enticed by the lure of
adventure, or the possibility and
sometimes the necessity of lowercost living, many couples on the
cusp of retirement dream of living
abroad. All of these motivations led
financial journalist and lawyer Deborah L. Jacobs and her husband to
rent out their Brooklyn townhouse
to strangers for three months while
they decamped to France to live in
SERGE BLOCH
By Jean Chatzky, Michael F. Roizen,
M.D., and Ted Spiker; Grand Central
Publishing
In a style both chatty and accessible, financial journalist Jean
Chatzky, physician-author Michael F.
Roizen and co-author Ted Spiker explore strategies to maintain your
health and boost your wealth. Regardless of your age, the authors
emphasize the importance of regular
medical and financial checkups to
assess where you are and what you
may need to change. They suggest
metrics for your wallet and physical
fitness; and rather than fear those
numbers, the authors say, welcome a
signal that it’s time to switch to a
healthier lifestyle or make financial
course corrections. They advise
building personal and professional
teams to help in good times and bad,
and counsel how to make sure your
home is both a secure investment
and a safe environment. It is never
too late to recover from setbacks,
say the authors, who offer specific
help for troubles ranging from postdivorce finances to addictions.
temporary digs leased from other
strangers. Deftly combining travelogue with how-to practicalities, Ms.
Jacobs chronicles each stage of their
journey, starting with repairing and
decluttering their own home to make
it attractive to tenants. She walks
readers through the nitty-gritty of
websites for short-term stays, tips
on vetting renters of your home, and
how to evaluate advertisements for
places you might wish to rent. She
candidly describes how she learned
the hard way, after booking a rental
that looked ideal in the ad but
turned out to be an alarmingly
musty dud. Ms. Jacobs and her
spouse found a quirky yet pleasing
alternative, also through the internet. For Ms. Jacobs, the pleasures of
food markets, out-of-the-way villages, enduring friendships and absorbing French customs outweighed
all of the frustrations—even discovering the crayoned walls, furniture
tears, and chips and cracks her tenants left behind in Brooklyn. This
book is invaluable preparation for
anyone thinking about long-term
travel options.
National Parks of Europe
Lonely Planet
This sumptuously illustrated volume profiles 60 parks ranging from
the bucolic to the rugged, including
England’s Lake District, coastal Italy’s Cinque Terre, the French Pyrenees, Sicily’s Mount Etna and the
Swiss Alps. Other destinations are
lesser known but no less inviting:
The Italian Dolomites sport monumental peaks, charming lakeside villages, rare flowers and trails that
range from easy strolls to strenuous
climbs. In Brecon Beacons National
Park in Wales, the moors and hills
are dotted with ancient stone circles,
castle ruins and historic forts; there
are caves ready to be explored, and
trails for mountain-biking and hiking. Iceland’s Snaefellsjokull teems
with fiords, sea cliffs, volcanic peaks,
lava fields, glaciers and waterfalls;
outdoor activities from bird- and
seal-watching to horseback riding
and hot-spring bathing are available,
too. Each park profile suggests
where to stay, plots itineraries with
must-do activities and must-see
places, and gives advice on when to
Witness Tree: Seasons of Change
with a Century-Old Oak
By Lynda V. Mapes; Bloomsbury
Forest trees reveal much about the
passage of time, writes Seattle Times
environmental reporter Lynda V.
Mapes. The trick is to decode the stories in their roots, buds, leaves and
ring cores, the tales told by the birds,
bugs, mice and mushrooms who
make their homes in the surrounding
area. The red oak at the center of the
book, part of the Harvard Forest of
Massachusetts, is “a living timeline
of cultural and economic change,”
Ms. Mapes writes. It has survived
storms, fires, birds nipping at its
buds, insects attacking its bark, and
tree-cutting humans in search of
cordwood. The author makes a
strong case for why the future depends on the health of the tree’s intricate ecological system. She incorporates conversations with scientists
and woodland specialists and ably
weaves their research into her larger
chronicle of change and adaptation.
Ms. Cole is a writer in New York
City. She can be reached at
reports@wsj.com.
You were looking to retire by the water.
Better yet, above it.
Captain of your own floating home.
That would be retiring like a boss.
That would also be tough without a plan.
U.S.
BONDS
AGG
WHEN INSPIRATION HITS,
BUILD FOR WHAT’S NEXT.
INT’L
STOCKS
IEFA
U.S.
STOCKS
IVV
Build for your future with iShares Core ETFs.
At 1/10th the cost of typical mutual funds, iShares Core ETFs
can help you keep more of what you earn.1
INSPIRED TO BUILD.
iShares.com/build
1. Source: BlackRock and Morningstar, as of 12/31/16. Comparison is between the average Prospectus Net Expense Ratio for the iShares Core Series ETFs (0.08%) and the
average Prospectus Net Expense Ratio of active open-end mutual funds (1.17%) available in the U.S. on 12/31/16. Visit www.iShares.com or www.BlackRock.com to
view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully
before investing. Investing involves risk, including possible loss of principal. Buying and selling shares of ETFs will result in brokerage commissions. TheiShares funds
are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). © 2017 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks
of BlackRock. All other marks are the property of their respective owners. 285131
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.
R10 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
Falling Is Dangerous—and Often Preventable
BY BARBARA SADICK
ONE OF THE biggest health
threats facing Americans age
65 and older is also one many
of them don’t like to talk
about: falling.
At least half of senior
Americans who fall don’t tell
anyone, according to a report
from the Centers for Disease
Control
and
Prevention.
Whether it’s a spouse declining to tell a partner, or an elderly parent hiding it from the
children, many seniors keep
quiet because they are embarrassed and fear losing their independence.
By remaining silent, however, many of these patients
become more afraid and more
sedentary, medical experts say.
That increases their risk for
additional falls and injuries,
which can lead to fatal complications such as intracranial
bleeding, flail chest and respiratory failure. Indeed, falls are
the leading cause of injuries
and death from injuries in
older Americans, according to
the CDC.
While falls can occur at any
age, the elderly are most at
risk. The CDC says that in
2014, almost one-third of
adults 65 or older reported
falling at least once in the preceding year, representing an
estimated 29 million falls and
seven million injuries. Of those
who fell, 37.5% reported at
least one fall that either restricted their activity or re-
sulted in medical treatment,
costing an estimated $31 billion in annual Medicare costs,
according to the CDC.
With large numbers of baby
boomers turning 65 each year,
falling is likely to become an
even more serious medical issue in years ahead, experts
say.
The good news is that there
are steps the elderly can take
to reduce their risk. Medical
experts increasingly believe
that strength and mobility, not
age, are the biggest factors in
determining whether a person
will fall.
“With balance training and
physical therapy, some muscles and nerves can regenerate
Falling Fast
Statistics on falling for U.S.
adults aged 65 or older, in 2014
29 million
Number of falls
1
Each second, 1 adult fell;
less than half informed their
doctor
1 in 4
Adults reported a fall
7 million +
Falls required medical treatment
or restricted the person’s activity
for at least a day
Centers for Disease Control and Prevention
THE WALL STREET JOURNAL.
TAI JI QUAN: MOVING FOR BETTER BALANCE
Falls can be reduced with
balance training, physical
therapy and safer homes
To help prevent falls, many doctors recommend Tai Chi exercises. A class in Lacey, Wash., above, bases its program on Tai Chi.
at any age and compensate for
the atrophy often seen in aging, thus reducing the risk of
falling,” says Daniel Deems, an
otolaryngologist and chief
medical officer of Fyzical
Therapy & Balance Center, a
physical-therapy franchise in
39 states. Falls can be reduced, he says, by working
with trained physical therapists to increase balance function in the brain and improve
core muscle strength for stability.
Dr. Elizabeth Phelan, a geriatrician and associate professor of medicine at the University of Washington School of
Medicine in Seattle, agrees,
saying, “The single most effective prevention strategy is the
practice of strength-balance
exercises like Tai Chi and the
development
of
muscle
strength.”
Dr. Phelan also recommends
that home environments be
assessed and modified as people age. Good lighting is essential, she says, while handrails along staircases can
enhance balance and steadiness, and stairs with clearly
marked edges can help improve visibility. In the bathroom, grab bars by tubs and
showers and around commodes are useful. Toilet seats
can be raised and tub-transfer
benches added, she says.
Showers that are flush with
the floor help, as well. (The
CDC has a list of health and
home practices to reduce fall
risk and help seniors continue
to live independently.)
Jon Pynoos, co-director of
the Fall Prevention Center of
Excellence and professor of
gerontology at the University
of Southern California’s Leonard Davis School of Gerontology, recommends that older
adults be screened for fall risk
at least once a year, and after
any fall occurs.
Checking a patient’s medications and dosages is a good
idea, he says, since many
drugs can cause dizziness,
confusion, balance problems
and a drop in blood pressure,
all of which contribute to falls.
Eyeglass prescriptions should
be kept up-to-date, and periodic eye exams (every one to
two years) also should be conducted, he says.
Dr. Phelan believes that
communities and state officials could do more to make
public spaces safer for the elderly. She recommends making sidewalks even, adding
lighting, lowering curbs and
adding benches.
In Massachusetts, a commission examines data and
makes recommendations to
the governor and Legislature
on how to reduce falls and the
health-care costs associated
with them. The state’s Department of Public Health, meanwhile, works with community
partnerships to make strength
training and balance programs
available to older adults at
risk of falling. (Seniors should
check to see what resources
their state has to offer.)
“Falling is an expensive
problem with huge ramifications that can affect the quality of life of an entire family,”
says Carlene Pavlos, director
of the Bureau of Community
Health and Prevention in Massachusetts.
“With solid strategies,”
however, “falls don’t have to
be inevitable and can be prevented,” she says.
Ms. Sadick is a writer in
New York. Email her at
reports@wsj.com.
THE EXPERTS
SECOND ACTS
AFTER A CAREER OF
SITTING, A RETIREMENT
THAT’S ALL UPHILL
HANK BOOTZ
Barbara Grutter
Age: 64
Hometown: Dearborn, Mich.
Primary career: Manager and
consultant, health-care information
technology
Current path: Indoor-sport and
rock climbing
Why this path: “I was determined to take steps to get fit and
healthy.”
Until she was 61, Barbara Grutter’s only exercise was an occasional
walk or bike ride.
Now, at age 64, she lifts weights and does floor exercises, puts in 10
laps on four flights of stairs two to three times a week, and she logs at
least 8,000 steps a day on her Fitbit.
It’s all part of the conditioning she endures to pursue her new passion: climbing.
As she tells it, what led her to rock climbing was lethargy. The sitting-in-front-of-a-computer kind. Near the end of her 30 years in healthcare IT, she says, she was working 12 to 14 hours a day nearly every day
of the week as head of her own consulting company.
“It was a lot of sitting for a lot of hours, high stress and not a lot of
sleep,” Ms. Grutter says. A lot unhealthy food, too.
She retired to occasional contract work in 2013, “determined to take
steps to get fit and healthy,” she says. This included eating healthier and
stretching every day. She lost 10 pounds within the first year.
Then, in 2015, some friends introduced her to indoor sport climbing.
She liked it so much, she found a climbing gym close to her home in Dearborn, Mich. On her first visit, Ms. Grutter met Ron Wiggle, an 80-year-old
man with 40 years of climbing experience. He became her mentor.
“He got me hooked,” she says.
Mr. Wiggle quickly persuaded Ms. Grutter to give outdoor climbing a
shot. She joined him in Moab, Utah, the following spring for her first attempt—a beginner’s route of roughly 100 feet up part of a popular formation there known as Wall Street, for its sheer, towering rock faces.
“I’m really pushing my limits,” she says. “I never would have believed I
could have done it.”
Her second outdoor climb, this past May, also in Utah, was a 400foot ascent up the spine of Looking Glass Rock, a rounded ridge with a
steep drop-off on each side. Before starting, she says she took one look
and immediately doubted herself.
“My stomach clenched. My heart dropped. I thought, ‘All of this prep
and I simply can’t do it,’ ” Ms. Grutter says. But her climbing partner—
who she would be attached to, and who would catch her if she fell—told
her, “You can do this. You’ve done it before. I’ve got you!”
She not only completed the climb, but returned to the bottom by
means of a 115-foot free-air rappel and a midair rope swing.
Ms. Grutter has met climbers ranging from their 20s to their 80s, “all
of them cheering each other on and giving each other tips.”
She also sees benefits spilling over to all aspects of her life.
“I think a lot of people look at these years as a time of decline,” she
says. “Having been involved in this now, I see this as a period of real opportunity to accomplish things. I think we can make a difference in what
that experience of aging is by what we engage in.”
Ms. Grutter says that while her husband is proud of her climbing accomplishments and keeps a photo of her climbing as a screen saver on
his computer, her mother is less supportive. She continually asks, “Now
that you’ve done this, can you please quit?”
Ms. Grutter hopes to continue climbing for the next several years. She
recently returned from another trip to Utah which included “six days of
scrambling” and “a couple impromptu short beginner climbs.” She plans
to continue her indoor climbs in the winter and in summer as well.
“I just want to keep challenging myself and progressing,” Ms. Grutter
says. “I will continue to do this until I break or I’m bored.”
—Julie Halpert
Insights on Rates, Charity
The Experts are an online group of industry, academic and cultural thinkers
who blog about topical issues in their fields of expertise. Edited excerpts
follow. For more, go to WSJ.com/Reports.
Higher Rates Pose Threat,
Especially to Elderly
The Federal Reserve’s decade of
“quantitative easing” will soon
end. With this change in policy, we
should expect not one but several
interest-rate increases over the
next few years.
These higher interest rates will
come as an unpleasant shock to
those who hold far more debt than
in the past, especially adjustablerate debt. One group particularly
vulnerable to Fed policy changes:
older Americans.
People ages 50 to 80 saw their
debt rise 60% from 2003 to 2015,
whereas leverage for younger borrowers dropped over the same time
frame, according to the Federal Reserve Bank of New York. Baby
boomers have racked up mountains
of unpaid credit-card bills, student
loans for themselves and their children, and payday loans.
Another reason today’s older
Americans are deeper in debt is
that they bought far more expensive homes, and paid for them
with smaller down payments, compared with the past.
I vividly remember Archie Bunker’s mortgage-burning party on
the television show “All in the
Family,” which conformed to my
parents’ expectation of paying off
the house before retirement. Nowadays, by contrast, few people retire owning their homes free and
clear, meaning they will carry debt
for years, perhaps even for the
rest of their lives.
Our recent study on three generations of older participants in
the Health and Retirement Study
(a longitudinal project sponsored
by the National Institute on Aging
and the Social Security Administration) showed that almost onequarter of those in their mid-50s
hold debt that exceeds half their
assets, compared with fewer than
one-tenth in the early 1990s.
Moreover, almost one-quarter of
that age group has less than
$25,000 in savings vs. 17% in the
previous cohort.
Against this backdrop, what will
rising interest rates mean for
many older Americans?
I would not be surprised to see
them experiencing more financial
stress and potentially more risk of
bankruptcy. In fact, borrowers 65
and older are already defaulting
twice as often as their younger
counterparts, and this rate is likely
to grow as the Fed tightens. Moreover, more than one-quarter of
people ages 56 to 66 are already
financially fragile, defined as saying they cannot (or probably cannot) come up with $2,000 within a
month in the event of an unexpected emergency.
One proactive response would
be for people to tighten their
belts, consume less and pay back
their obligations quickly. While
this may not be easy, it would be
less expensive than the alternative.
Another option would be to work
longer, which would ease the burden of paying back expensive debt.
To some extent this is already happening, as our recent paper
showed that older women already
are seeking and holding on to jobs
longer than ever before, due to
their lack of a financial cushion.
So higher interest rates will be
bad news for many older people.
By contrast, those who have saved
for old age will benefit from the
interest-rate rise via higher returns on their investments.
—Olivia S. Mitchell, professor, the
Wharton School, University of
Pennsylvania
i
i
i
A More Tax-Efficient Way
To Give to Charities
As the end of the year approaches, many investors may still
need to take their required minimum distributions from an IRA for
2017. And these same investors
also may be completing their charitable giving for the year.
What many don’t know is they
can take advantage of a strategy
that allows them to combine those
two needs and reduce their taxes.
For most taxpayers age 70½ and
older, making a qualified charitable distribution from an individual
retirement account is a more taxefficient method of making philanthropic contributions than withdrawing the money from an IRA
and then donating that money.
A qualified charitable distribution of up to $100,000 can be
made annually from a traditional
IRA directly to a qualified charity.
You also can roll funds from a
401(k) to an IRA and then make
the qualified charitable distribution, but you can’t make a distribution directly from a 401(k).
Qualified charitable distributions
also count toward your required
minimum distributions (RMDs) for
the year, but they can’t be claimed
as a charitable deduction on your
tax returns.
—William Reichenstein, professor,
Baylor University; research head,
Socialsecuritysolutions.com
Get the Most Out of
Calling Your Doctor
For most people, it can take
weeks to book an appointment
with a doctor, and hours to get to
and from the doctor’s office.
So getting your doctor on the
phone can be a solution, but it’s
also an undertaking. Your doctor
may not return calls today, and
when they do, it’s easy to bungle
the call and miss the opportunity
to get all your questions answered.
Most doctors can’t (or won’t)
bill for these calls, so it’s basically
free care. But people tend not to
realize that it takes away from the
doctor’s time with other patients,
which in turn reduces income for
the practice, which means even
more patients have to be seen per
hour to cover costs. In the end, it
only bites us back when we are the
patient sitting in the office.
So here are a few suggestions to
help you and your doctor achieve
the same mission of providing
good medical care in the most efficient manner and at minimal cost:
1. Before any phone calls can be
made, you must have an initial
visit to establish a good doctor-patient relationship and enable him
or her to learn about your medical
and psychiatric history and current state of health. It’s also critical to get to know the office staff.
They perform multiple tasks and
are the gatekeepers to the doctor.
2. At the initial visit, ask about
the policy on phone calls, including whom to call, how long to wait
for a callback, and what issues the
doctor will or won’t handle. There
are often physician assistants or
nurse practitioners who can also
step in for many questions.
3. Phone calls aren’t appropriate
for urgent, complex or new issues
that are producing excessive pain,
worry or other symptoms.
4. Phone calls are appropriate
for concerns about medication side
effects and refills, test results, and
recurrent or lingering issues that
were addressed in recent appointments (e.g., the ointment only
worked a little—now what?).
5. Organize your thoughts and
questions ahead of time by writing
them down. If there is a secure
email or electronic portal set up
by the office that conforms to privacy laws about electronic transmission of medical information
(i.e., HIPAA regulations), send information and questions to the
doctor for review before your call.
—Marc Agronin, geriatric
psychiatrist, Miami Jewish Health
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.
Monday, November 13, 2017 | R11
NY
JOURNAL REPORT | ENCORE
Forget Triathlons. It’s Time for Aquabike.
For triathletes who hate the running part,
there’s a new sport that offers a path to glory
WHEN I PROUDLY told friends
that I had qualified for the
world championships in aquabike this past August, at age
60, I faced blank stares and
concerned questions.
“How does the bike move in
the water?”
“Do you practice on a stationary bike in the pool?” my
brother-in-law asked.
The answer is that aquabike
is a relatively new sport in triathlon, a race that normally
includes a swim, bike and run.
In aquabike, you get to skip
the run.
While races vary, the most
common distance is a 1.2-mile
swim and a 56-mile bike ride.
“Swim, bike, done,” enthusiasts say.
While the number of participants in triathlons has declined in the past few years,
aquabike is growing rapidly,
partly by appealing to older
athletes with running injuries.
“It’s growing like a weed,”
says Chuck Graziano, a director of USA Triathlon who has
a titanium knee and competes
in aquabike. “It doesn’t include the pounding of running.
It can be age-related, injuryrelated, or people who just
prefer not to run.”
Indeed, the number of
aquabike races sanctioned by
USA Triathlon, the sport’s governing body, has more than
doubled in five years to 562
races with 5,160 aquabikers
last year.
Other hybrids
Its creation follows other
race variations with equally
weird names: Duathlon is a
run, bike, run competition,
and aquathlon is usually a
swim, run contest. But aquabike, the first hybrid to nix
running, gained status this
past August when it was included in the 2017 Interna-
tional Triathlon Union’s multisport world championships in
Penticton, British Columbia.
That elevation of aquabike
gave me—a distinctly belowaverage triathlete and a slow
runner—a new loophole to
qualify for Team USA and attend the world championship,
a goal that had eluded me despite a great deal of effort.
As I detailed in an earlier
article about taking up triathlons in my late 50s, it seemed
like a quick path to glory. I
could land on the podium in
small, local races—simply because so few women in my age
division showed up.
I quickly became addicted.
But when the smaller races
qualified me for national
championships—where the top
18 qualify for Team USA—I
made an unwelcome discovery: Lots of women in the
60-64 division showed up
from all over the country.
And they’re fast.
Case in point: When I went
to the national championships
in Milwaukee in 2015, I was
59th out of 70 in the Olympic
distance triathlon, with a time
of 3:23:41. Many of my competitors sailed past me in the
run—wearing sleek Team USA
triathlon suits with their
names on their butts.
And when I qualified for the
national championships in
Omaha the next year: same
thing. I moved up just one
notch, to 58th place out of 68
in my division, with an even
slower time of 3:41:15.
Speed hurts
It all seemed hopeless, particularly the run. I have arthritis in my knees, and when I
took up speed intervals, trying
to become faster, I tore my
hamstring, broke my foot and
developed plantar fasciitis, in
that order.
Last year, USA Triathlon
ranked me 300th out of 449 in
my age division, female 60-64.
Race day
Bottom half.
Two things were becoming
clear: I needed a coach to help
me get faster. And I really
wanted the Team USA outfit
with my name on the butt.
Mostly, I wanted the outfit.
I hired a coach and began to
train upwards of 12 hours a
week, made easier by the fact
that I had put aside my freelance writing to focus on this
one goal. I began to get faster,
but my run times were lagging.
Then, in the summer of
2016, my coach emailed, saying aquabike had just been included in the national championships, scheduled for Miami
in November. Here was my
chance to qualify for Team
USA, wear the uniform, and legitimately compete at the
world championships in British Columbia, she wrote.
At first, I was insulted.
Aquabike is a weird name. Triathlon conjures up Ironman
races and the uber-fit. Aquabike
conjures up…a bike underwater.
It also seemed like a triathlon
for people who can’t run.
But as I studied the signups, I realized she was right.
The top 18 in each age group
would qualify for Team USA,
and just a few had signed up so
far. I realized, incredibly, it
might be possible to get the
Team USA outfit and be at a
world championship by default.
I signed up, and after swimming the 1.2 miles in a lake
and biking the 56 flat miles
through farmland, I came in
7th of 12 in my division with a
time of 3:59:55.
I didn’t make the podium,
but no matter: All 12 of us had
qualified for Team USA, and
we shared a collective joy at
our statistical good fortune.
We were in.
I’ll take two
As soon as the team outfits
became available, I ordered
two. They were spectacular in
a sleek blue compressive fab-
SECOND ACTS
KAYLANA BROWN
THIRTY YEARS IN CORPORATE
FINANCE. NOW COMES DESSERT.
Rob West
Age: 61
Hometown: Simi Valley, Calif.
Primary career: Corporate finance
Current path: Ice-cream franchisee
Why this path: Mr. West says of his customers, “They come in happy and leave
happier.”
Ice cream has always held pleasant memories for Rob West. “I can’t remember many
years growing up when my mom didn’t
serve an ice-cream dessert,” he says. “When
ice cream was being passed around, it was
always the happy times.”
Now 61 and living in Simi Valley, Calif.,
Mr. West is having his dessert once again.
After a 30-plus-year career in corporate finance, first with two consulting giants, then
an insurer, Mr. West has found a way to relive the joys of his childhood—as a proprietor of several ice-cream shops.
Mr. West started out as an entrepreneur
at 12, selling lightbulbs door to door. To earn
money for college, he bought 11 used movie
projectors and drove around Salt Lake City
selling them to audio-video dealers.
When it came time for a career, however,
he chose corporate finance. He found it rewarding. But continuously looking for ways
to reduce costs was stressful, he says.
He increasingly longed to do something
on his own terms, to be his own boss as
head of his own company.
Then, on a visit to Boise, Idaho, he
stepped into an ice-cream parlor with a different kind of concept—and something
clicked. Customers chose their own unique
mix of ingredients, the type of cream, the
flavors and add-ins. The order was then
dipped in liquid nitrogen, creating instant ice
cream in a burst of frigid fog.
The shop was part of a franchise called
Sub Zero Ice Cream, and Mr. West immediately wanted one for himself. This was in
2010, and the company wasn’t yet registered
to sell franchises in California. So Mr. West
spent the next two years working with the
company to register the business in California, and negotiating issues with city officials
in Simi Valley, where he wanted to open.
He often works 12-hour days now. Still,
he relishes it. With three stores now, he supervises young employees, keeps the books,
takes inventory and caters. His experience in
marketing, sales, financing and accounting
have helped, and he’s still learning about advertising, inventory and construction.
One of his favorite tasks, he says, is the
science presentations he gives at schools in
which he demonstrates the unique properties
of nitrogen. He’ll dip a rose in liquid nitrogen
for five seconds, then crush it with his hand.
It breaks into “a million pieces,” he says.
For the grand finale, he pours water into
a bucket of nitrogen. “It makes this huge
cloud of fog blow up 20 feet. There are
times when if I do it just right, I’m lost in
this cloud and nobody can see me.”
Mr. West says he’s gained 20 pounds.
Still, he sees his product as a bridge to happiness. His customers are often celebrating
an occasion, whether it’s a sports team or
families commemorating a milestone.
“I just feel I’m lucky to be part of that,”
he says.
—Julie Halpert
FINISHERPIX.COM
BY KATHLEEN A. HUGHES
ing hills, unlike Miami.
The author, at the world championships in British Columbia.
ric with red, white and blue
stripes on the sides and stars
on the legs. Best of all, they
were emblazoned with my
name, right on the butt.
It took me a while to grasp
that the British Columbia
world championships meant
there would be athletes from
38 countries competing over
11 days in a long series of
races. I would be among those
representing the United States
of America in aquabike.
If you’re prone to anxiety, it
can be alarming to realize that
you have qualified for a world
championship—thanks to a
statistical quirk. Also, having
an age-division ranking of 300
out of 449 doesn’t inspire confidence. It’s like landing on the
U.S. Olympics pole-vaulting
team by mistake.
While I sometimes wavered,
I also knew, at age 61, this
would likely be my one shot at
a world championship. Ever.
But the training assignments were now harder. The
course at the world championships was a third-again longer
than the race in Miami, with a
swim of 3 kilometers and a
bike course of 120 kilometers.
My days were now dominated
by four-hour bike rides and
3,000-yard swims.
My coach thought I was
ready.
Arriving in British Columbia,
I soon found a support group
of six women who had mostly
qualified the way I did. “I just
don’t know if I’m going to finish the bike,” was the refrain.
That was a stark contrast to
the international athletes
pouring into the place, including the ultrabuff set from
places like New Zealand. They
looked like a different species.
Our newly formed support
group prepared by driving the
bike course, commenting that
it seemed long, with intimidat-
By race day, I was emotionally done. The alarm went off
at 4 a.m., and I drove my
group of equally wired teammates to the site in the dark.
The starting gun went off at
6:55 a.m., beginning a 3-kilometer swim around Okanagan
Lake. I was eighth coming out
of the water—out of 15 in my
age division.
After being stripped of my
wetsuit by volunteers, I set
out on the bike, and began the
three challenging, if highly
scenic, loops that made up the
120-kilometer bike course.
It was hot. A Japanese athlete was walking her bike up a
steep hill. New Zealand, Canada and South Africa riders all
zoomed past me.
“Go Hughes! Go U.S.A.!” bystanders screamed. (How
could they know my name, I
wondered, momentarily forgetting that outfit I was so
proud of.)
I finished 11th out of 15—
although two in my age division had a dreaded “DNF”—
did not finish.
So it could have been
worse.
After racking my bike, I ran
across the finish line for my
photo, smiling broadly.
But, of course, that wasn’t
the end. I now own a major
collection of Team USA triathlon suits, swimsuits and a parade outfit, inspiring me to
sign up, once again, to compete at the national championships in Miami—which took
place yesterday.
More women signed up in
my age group this year and I
nervously tracked the totals
right up until the night before
the race. Next year’s world
championship is in Denmark.
In the end, I finished 11th of
16, with a time of 4:07:05.
Pending official results, it looks
like I’m going to Denmark. But
either way, I have the outfit.
Ms. Hughes is a writer living
in California and New York.
Email: reports@wsj.com.
THE WALL STREET JOURNAL.
R11A | Monday, November 13, 2017
ADVERTISEMENT
Property Guide
To advertise: 800-366-3975 or WSJ.com/classifieds
! " #$ %$ &$ '
! (
) *
+ , -(.( /00
(1 2 3445 67 8 1 0 9 :
8 ; 1
9 - ! <
=> ? @ =' A * 4 8 @
; , &$ B =
=1 @ =C
D /
* ! @
/ (
; E$$$ ( / F =
@ = @
=4 8 @
=4 8 A %$ ' 8 ! ' @
0G C
1 7 6 9 : =' !
@ =4 B > $$
D %$ 9 ; (@
. . ;
HGG -(.( /00 (1
I"H: 8 ) A
8 =. ) J$ 8!
@ =4 A ' => ?! * (G @
! !"#
$ #
%
&
'
!" #$%$!& '(
)*+,) ,+- ./, 01+ 2&- 2 ))
! " #
$ % & '$ " " &
(#)
*+)() *),-. (),+' ,) - '/01 (*- ) ,*+ (#) *),*, ) -* 02/303 41305 03133/303 00/1/05
THE WALL STREET JOURNAL.
Monday, November 13, 2017 | R11B
ADVERTISEMENT
Property Guide
To advertise: 800-366-3975 or WSJ.com/classifieds
!" # $ % &
& '( )
" * ' + $ )
)
, )
,
-./ , )
*
% 0
)
1 (
" %
'2 &
$ 3 $ * '2 4 *
1 )
56 0 5
)
%
', * '7
3
+ *
The Retail
Real Estate
Showcase
8 8 8
8 9 8
9: 8
(
; 8
8 : 9 8 8 8 (88
!
8
8 ! <
88 = ""# 8
=
:
: 8 8
8 8
98$ 8 88 !8 8 8 9 %! 8
& 9:8 9 =8 '8
= 8
: 9 : ( 8:8
&% 88
: 8 :
8
8 ) =
: ! :' 9
: =
!8 8
! ""# 8
9 %!
9 *8: &+:'8 ""# : :
: 98
8 8
:
8 ,: ' ! 8
: = : 9 88 8
: 8 : ,: 9 -$ 8$
: ! !8 88 9!
.
8 ,:' !
8:(
/
8 8 0 = ""# 8 8 : 9 9! 8: :
,: 9 98
; : 8
8
8
8
& 8 8 9 8 !8
: : 9 8: : !
8( 8 8 &9:8 :'
=
! : = 9: ! 8
+88 8 9 :
= 888 8
( 8 8
= :8
9
8! >1 888 : 23 1
!
83'
& 8 <
9 2 99!
, 4 ! 9 *8: 9
'8 88 :8
8 2
9 88 88(
Advertise in The Wall Street Journal’s upcoming special
advertising feature and reach key commercial real estate decision
makers. Produced in partnership with The International Council
of Shopping Centers, this section will cover top retail trends and
explore the economic value proposition created by shopping
centers and the retail industry.
!
Bonus Distribution:
ICSC: NEW YORK NATIONAL DEAL MAKING
December 6, 2017 | New York, NY
Issue: December 6 | Close: November 29
Section: The Retail Real Estate Showcase
For more information on advertising opportunities, please contact:
Lauren Swan at lauren.swan@wsj.com | 212.597.5989
Source: 2016 Ipsos GBI Study; 2016/17 Purchase Influence
in American Business Study, Erdos & Morgan.
© 2017 Dow Jones & Company, Inc. All Rights Reserved.
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.
R12 | Monday, November 13, 2017
JOURNAL REPORT | ENCORE
The Older I Get, the Less I Seem to Know
They say wisdom comes with age. Maybe, but not the kind of wisdom I always cared about.
I mentioned a few of the notables I
could put her in touch with. She responded to every name I listed with
a blank stare. Well, maybe some of
them had moved on. I dug out my
vaunted Rolodex, and as I went
through it I realized many of the
people in it had worked at jobs that
don’t exist anymore. Many of the
people, in fact, don’t exist anymore.
Technology is yet another realm
where my ignorance shines through.
This was an area I knew. I worked on
websites. I was always in tune with
advances in technology. But just the
other day I had a phone conversation with a tech-support guy. Mostly,
it was incomprehensible. It seems
tech-speak has outgrown me. As I
threw out terms like Unix, baud rate
and Xywrite, I must have sounded
like that friend of the family when I
was a child who would ask, “So you
like that go-man-go rock ’n’ roll,
huh? Hot-cha!”
BY JOHN BUSKIN
OLDER BUT WISER.
How many times a day do we
older people hide behind that chestnut? Or that wisdom comes with
age? Or if only I knew then what I
know now?
Well, I don’t mean to sound too
curmudgeonly, and I’m not really
that old (just having turned 70), but
I want to throw at least some cold
water on the older-but-wiser conceit. In many of the ways I long used
to keep score, I don’t feel nearly as
wise as I used to.
Sure, I can probably tell you
things I’ve seen and done and
learned along the way. I can probably
tell you the mistakes I’ve made and
what you can learn from them (not
that anybody will ask or learn). And
I know plenty of facts: I can quote
Wordsworth and can grasp the difference between hot and cold fusion.
Still, what about the day-to-day
things that I’ve long used to define
my wisdom? Unfortunately, those
are things that I no longer know, or
can no longer do.
Older but wiser? More like older
but dumber.
Not a clue
Let’s start with crossword puzzles. I am not ashamed to say that
my lifelong thirst for knowledge was
in service of a toxic crossword dependence. When my uncle (who
solved crosswords like the wind)
started calling me for answers some
years ago, I took great pride in being
able to tell him.
“Are you sure you want me to tell
you?” I would ask him. He answered
with an unpleasant noise from his
vocabulary of unpleasant noises. I’d
give him the answer and he’d vocalize an even more unpleasant noise.
Finally, he gave up the puzzles,
though he continued growling and
harrumphing until he died.
Poor old guy has lost his crossword-puzzle edge, I thought.
Now who’s the poor old guy?
These days, I find that so much of
the knowledge I acquired in the past
is dated at best, obsolete at worst.
With rap artists increasingly being
the answers to puzzle clues, I find
myself sliding into my uncle’s pre-
GARY HOVLAND
Plenty smart
dicament.
Yes, with my smartphone, I can
google clues. So at least I am spared
the public ridicule my uncle had to
endure. But while googling the answer makes it possible to continue,
getting external help has transformed my crossword habit into a
moral and ethical cesspool—and
made it a lot less fun.
Harrumph.
Who is that?
What’s more, it’s clear that my ignorance—for crossword puzzles and
otherwise—extends well beyond the
music scene. On line in the supermarket not long ago, I picked up a
People magazine and paged through
it. Amazingly, I didn’t recognize even
one of the celebs inside. Not a single
one. As my children grew up, they
kept me somewhat current in terms
of pop culture, videogames and hip
vernacular. But now they’re adults
living in another city. And they don’t
have time for a regular pop-culture
tutorial (no pun intended).
Then there are the humble comic
The most valuable
thing I’ve learned is
that the stress I felt
for way too long sucks.
books, which have morphed into
two-hour-plus movie epics. There
are superheroes as specialized as
dermatologists. And they fight with
each other…on teams! I went to see
“Ant Man” with a friend and her son,
and when other superheroes showed
up on-screen, I whispered a request
to the son to tell me what was going
on. Without taking his eyes off the
screen he said, “It’s too complicated.” Comic books?
I concede that part of the problem is that I never really acquired a
hobby. I can blame that on being too
busy working. But it probably was
more laziness.
I now see what I missed. I once
took a figure-drawing class taught
by an older man who’d been drawing
the human form for more than 60
years. Watching the movement of his
hand with the charcoal across the
big pad, I perceived that, after drawing all this time, his gesture was as
much art as the image itself. He was
poetry in motion. He had achieved
his expertise through long experience. Certainly my skills have taken
a hit, but wasn’t there something I
used to do that I did artfully or at
least well? Something where my experience, my wisdom, could shine
through? Then I remember the
Jazzercise leader who stopped the
class to say to me, “You are very
clumsy, yes?”
People who matter
Like so many people, much of my
wisdom revolved around work, and
especially my list of contacts that I
could pull out at any moment, helping the younger, not-so-wise, youngster starting his or her way up the
career ladder. After all, “it’s who you
know,” and I knew them all.
In that spirit, I recently offered
my daughter-in-law, who is working
in my field, the benefit of my “juice.”
I don’t want to sound like a complete curmudgeon. (Too late, I
know.) As I said, I am plenty smart
about lots of things (see Wordsworth and cold fusion). Not only
that, I am smarter in a few key ways.
The most valuable thing I’ve learned
is that the stress I felt for way too
long really sucks.
Take away stress and you lose
weight and get happy. It feels like
the teams you root for win more often. Or, more important, when they
lose, it simply doesn’t matter as
much.
And maybe, just maybe, I can learn
to be smart enough to know that it
doesn’t really matter that I can’t keep
up with the pace of change. Maybe
the crossword puzzle is just something I used to do more easily. Maybe
I’m not missing anything by not
knowing pop culture or comic-book
movies or the movers and shakers.
Maybe I don’t need to know how the
latest technology works.
In other words, maybe I don’t
have to feel so dumb, if I just change
my definition of wisdom. If I can do
that, I just may be smarter than
ever.
Mr. Buskin is retired and lives in
upstate New York. He can be
reached at reports@wsj.com.
Retirement is years away but you can feel better now.
Knowing you’ve planned for retirement can bring less stress, more sleep, and true focus to what
matters now. TD Ameritrade’s Financial Consultants are here for you, whether it’s getting help with
a plan, rolling over your old 401(k), or opening an IRA. Feeling better about your future starts today.
Get up to $600 when you roll over an old 401(k) today.
Visit tdameritrade.com/planning to learn more.
A rollover is not your only alternative when dealing with old retirement plans. Please visit tdameritrade.com/rollover for more information on rollover alternatives. See tdameritrade.com/600offer
for offer details and restrictions/conditions. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. TD Ameritrade, Inc., member FINRA/SIPC.
© 2017 TD Ameritrade.
Документ
Категория
Журналы и газеты
Просмотров
10
Размер файла
10 709 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа