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 firstname.lastname@example.org 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. 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By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: email@example.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. 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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. 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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 email@example.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 firstname.lastname@example.org. 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. 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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: email@example.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 firstname.lastname@example.org. THE JOURNAL REPORT For advertising information please contact Katy Lawrence at 212-416-4119 or email@example.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 firstname.lastname@example.org. 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 email@example.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: firstname.lastname@example.org *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 email@example.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 firstname.lastname@example.org. 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 email@example.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 firstname.lastname@example.org. 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 email@example.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: firstname.lastname@example.org. 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 email@example.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 firstname.lastname@example.org. 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 email@example.com. If you have retired abroad and are interested in writing a column about your experience, write to us at firstname.lastname@example.org 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 email@example.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 firstname.lastname@example.org. 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: email@example.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. 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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 firstname.lastname@example.org | 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. 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