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The Wall Street Journal November 15 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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GOLD $1,281.50 À $4.20
Sessions in Hot Seat, Recalls Discussion of Russia Meeting
What’s
News
U
.S. manufacturing has
picked up pace over the
last 12 months, aided by
steady global economic
growth and other factors. A1
Venezuelan bonds fell
after rating firms declared the
nation in default on missed
interest payments. B19, B20
Japan’s GDP grew at an
annualized pace of 1.4% last
quarter, marking its longest
growth streak in 16 years. A7
GE lost its spot as the
top industrial firm by market value after its share price
slid 13% in a two-day fall. B1
Energy shares helped
drag down stocks as crude
prices fell. The Dow shed
30.23 points to 23409.47. B19
Oil futures tumbled as
the IEA cut its demand forecast. U.S. crude fell 1.87%. B19
Nintendo is close to a
deal with animation studio
Illumination to make a
movie based on the “Super
Mario Bros.” videogame. B1
World-Wide
Senate Republicans attached a provision to their tax
overhaul that would repeal the
requirement that all Americans have health insurance. A1
Republicans, fearing a
Democratic victory in Alabama’s U.S. Senate race, are
grasping for ways to derail
GOP nominee Moore. A1
Zimbabwe’s military moved
to subdue what it called the
nation’s “degenerating” political establishment but denied
it was ousting Mugabe. A9
Ross defended the administration’s aggressive Nafta
strategy, suggesting the U.S.
can press Mexico and Canada for big concessions. A6
Trump returned from his
Asia trip with a good deal of
bonhomie with fellow leaders
but few tangible outcomes. A8
The House passed a defense-policy bill that would
boost military spending to
nearly $700 billion. A3
U.S. Catholic bishops
chose a conservative for a
key post, signaling resistance
to the pope’s vision. A3
Australians endorsed
same-sex marriage in a nonbinding national vote. A9
A gunman choosing his
targets at random opened
fire in a Northern California
town, killing at least four. A2
Three UCLA basketball
players returned to the U.S.
after being detained in China
for suspected shoplifting. A8
Property Report..... B8-13
Sports........................ A16
Technology............... B4
The Count.............. A16
U.S. News............. A2-6
Weather................... A16
World News...... A7-11
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
ON THE HILL: In a five-hour appearance Tuesday before a House committee in Washington, Attorney General Jeff Sessions said he remembers
a 2016 meeting with a Trump campaign adviser in which the aide spoke about contacts with Russians, a contrast to earlier statements. A4
Senate GOP Adds Tax Twist
Republicans signal they
will try to repeal key
Obamacare provision
as part of new plan
BY STEPHANIE ARMOUR
AND RICHARD RUBIN
Senate Republicans attached a provision to their tax
overhaul that would repeal the
requirement that all Americans
have health insurance, a new
twist in the GOP lawmakers’
efforts to rewrite much of the
U.S. tax code.
The insurance mandate is a
centerpiece of the 2010 Affordable Care Act, also known as
Obamacare. Repealing it is a
long-sought goal of Republi-
cans, who see it as onerous.
Moreover, eliminating the
mandate could free up federal
tax revenue because it would
mean fewer households buying
insurance and thus fewer applying for federal health-care
subsidies or for Medicaid.
Republicans plan to use the
money freed up by repealing
the mandate to direct tax cuts
to middle-income households.
They want to increase their
proposed $1,650 child tax
credit to $2,000 per child and
lower the tax rates in three
brackets, dropping the proposed 22.5%, 25% and 32.5%
rates to 22%, 24% and 32%, respectively, according to the
proposal, released Tuesday
night by the Senate Finance
Committee.
Those alterations, which the
committee
will
debate
Wednesday, will help Republicans show more tangible benefits to families, and the bigger
child credit was a priority for
some GOP senators.
Under the changes announced late Tuesday, all of
the individual tax cuts and the
tax cuts for pass-through businesses would expire at the end
of 2025.
That would help Republicans follow the fast-track process they are using, which lets
them pass a bill without needing Democratic votes but prevents them from adding to
projected budget deficits after
2027. However it opens them
to Democratic arguments that
they are prioritizing corpora-
tions’ permanent cuts over individuals. And Democrats will
likely be able to point to significant tax increases for individuals in 2027, compared with
what would happen if Congress does nothing now.
The updated version of the
tax bill also would make more
businesses eligible for a new
special deduction, double a deduction for teachers’ out-ofpocket expenses and create a
tax credit for businesses that
offer paid family leave.
Including the health-policy
change adds a new layer of
complexity to an already labyrinthine tax debate. Republicans have been speeding
ahead, powered by a political
imperative to reach a big ecoPlease see REPEAL page A6
Party Pressures Moore on Senate Bid
BY JANET HOOK
AND SIOBHAN HUGHES
Sessions said he now recalls a 2016 meeting with a
Trump campaign adviser at
which the aide spoke about
contacts with Russians. A4
CONTENTS
Business News.. B3,7
Crossword.............. A16
Heard on Street B20
Life & Arts...... A13-15
Markets............ B19-20
Opinion.............. A17-19
ANDREW HARRER/BLOOMBERG NEWS
A junk-bond selloff centered in the telecom sector
is raising concerns that
weakness could spread. B1
Foxconn posted a 39%
drop in net profit amid
production challenges dogging Apple’s iPhone X. B1
YEN 113.46
BY ANDREW TANGEL
AND JOSH ZUMBRUN
Total debt held by U.S.
households rose to a new
high last quarter, the 13th
straight quarterly increase. A2
Central bank leaders
from the U.S., Europe, Japan
and the U.K. defended their
crisis-fighting measures. A7
EURO $1.1799
American
Industry
Picks Up
Steam
Business & Finance
Ex-Pimco CEO El-Erian
is one of several candidates
being considered to serve as
the Fed’s vice chairman. A2
HHHH $4.00
WSJ.com
WEDNESDAY, NOVEMBER 15, 2017 ~ VOL. CCLXX NO. 116
Republicans, seeking to head
off the first Senate Democratic
victory in Alabama in decades,
are grasping for ways to derail
their nominee, Roy Moore,
whose campaign has been engulfed by allegations of sexual
misconduct.
President Donald Trump
spoke on the phone from Vietnam with Senate Majority
Leader Mitch McConnell and
discussed how to manage the
crisis, the senator said. Mr.
McConnell, who has been
spearheading the effort to block
Mr. Moore, said Tuesday he
wants Attorney General Jeff
Sessions to reclaim the seat.
The Republican National
Committee cut financial ties to
Mr. Moore, and the Alabama
GOP is considering an array of
options to dislodge Mr. Moore
and still hold the seat.
Strategists in both parties
are reacting to a prospect that
appeared remote just a couple
of weeks ago: Democratic candidate Doug Jones could win in
the reliably Republican state.
The nonpartisan Cook Political Report, which had rated the
seat solidly in GOP hands, Tuesday declared it a toss-up. Republicans concede that Mr.
Jones, a former U.S. attorney,
could win as Mr. Moore’s campaign is dogged by nearly a halfdozen reports of sexual assault
and misconduct involving teenagers while he was in his 30s.
He has denied the allegations.
Venezuela’s Golden
Generation Is Fleeing
Push and Pull
Business groups press to
protect ‘Dreamers’......... A4
Ross says U.S. has
leverage over Nafta....... A6
Doubts emerge on tax
plan details........................ A6
GOP, bar association
tangle over nominees.... A3
“His campaign is collapsing,”
Mr. McConnell said at The Wall
Street Journal’s CEO Council on
Tuesday. “Obviously, we’re in a
discussion here about how to
salvage this seat, if possible.”
Republicans worry that if
Democrats win in Alabama, it
would put them one seat closer
to winning back the Senate majority, which the now GOP con-
Hey, Amazon:
Our Town Has
Stoplights!
i
Fate of class of 1994 signals a nation’s decline
BY RYAN DUBE
CARACAS, Venezuela—The
class of 1994 had big dreams
upon graduating from the
Ceapucv high school, a twostory building tucked into a
hillside overlooking this city.
Solsire Ortega wanted to run
an architecture firm, while
Juan David Chacón hoped to
become a famous musician.
Most of the close-knit class
of about 50 students intended
to stay in Venezuela, where
growing up meant parties on
Caribbean beaches, hiking the
Ávila mountain range and
cheering for the city’s Lions
baseball club. The oil-rich
country was still a land of opportunity, even though they
were coming of age amid the
rise of Hugo Chávez and his
leftist, antiestablishment
movement.
In the years after graduation, Venezuela went from one
of the region’s oldest democracies to what the U.S. and
others now call a dictatorship,
from one of Latin America’s
richest nations to one of its
poorest, and from a place
where migrants came searching for opportunity to one
many are trying to flee.
School ended more than
two decades ago, and now
about two-thirds of the class
has emigrated, according to
interviews with the students
and former teachers, starting
new lives in places like smalltown Texas, Madrid, and Sydney.
Please see CLASS page A12
Holders face quandary as
default sinks bonds.............. B19
Debt crisis in Venezuela:
What’s next?........................... B20
i
i
Retailer’s hunt for
a new site attracts
implausible bidders
BY LAURA STEVENS
Amazon.com Inc. is shopping
for a second home, and it has
attracted bids from big, urbane
suitors such as Boston and Dallas.
It also has fielded a proposal
from Rockdale, Texas—pop.
5,628.
The town, which enjoys a
few stoplights and hosts an annual rodeo, has joined forces
with the county to tout the
charms of an old manufacturing
area near town surrounded by
livestock ranches.
“It’s wide open spaces,” says
Please see TOWN page A12
A look at cities vying to be
Amazon’s second home....... B4
trols by just 52-48. In the 2018
midterm elections, Democrats
need to flip three GOP seats,
and so far have identified only
two strong prospects, in Arizona and Nevada.
The Dec. 12 special election
is being held to pick a successor
for Mr. Sessions, who held the
seat before he was named attorney general. Republican Sen.
Luther Strange was appointed
to temporarily fill the post, but
lost to Mr. Moore in the specialelection primary in September.
Republicans fear Mr. Moore is
impervious to political pressure,
because defiance is a hallmark
of his political career. As chief
justice of the state Supreme
Court, he lost his post twice for
bucking court orders to allow
Please see MOORE page A4
American manufacturing has
picked up pace over the last 12
months thanks to steady global
economic growth, a rise in energy and other commodity
prices, and increased business
confidence.
Although progress isn’t being felt by all industries, makers
of items ranging from bulldozers to semiconductors to food
products are on the upswing as
various measures of spending,
sentiment and employment
have climbed, while stock markets hit record highs.
The sector “absolutely has
improved relative to where we
were a year ago,” said William
Strauss, a manufacturing economist at the Federal Reserve
Bank of Chicago, who described
the growth as modest.
Employment numbers point
to the overall progress. The U.S.
manufacturers have added
156,000 workers since Donald
Trump was elected president in
November 2016, according to
government data.
That is a clear turnaround
from the loss of 16,000 such
jobs during the final year of Barack Obama’s administration,
although the recent growth
hasn’t surpassed manufacturing
payroll increases in 2011 and
2014, when the sector gained
more than 200,000 jobs.
Also, business investment
Please see SHIFT page A10
Total debt held by U.S.
households hits new high... A2
Ex-Pimco CEO El-Erian is
candidate for Fed post......... A2
Investors Dump
Telecom Bonds
Yields on junk bonds jumped in
November, led by a selloff in
debt of telecom companies. B1
Bloomberg Barclays U.S.
Corporate High Yield Index (n),
telecom component (n)
7.0%
6.5
6.0
5.5
5.0
Aug.
Sept.
Source: Bloomberg Barclays
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Wednesday, November 15, 2017
* ***
THE WALL STREET JOURNAL.
U.S. NEWS
Household Debt Hits a New High
Consumer confidence
The Mountain of Debt
spurs the increase, but Total U.S. household debt hit a new high in the third quarter, the 13th
delinquencies on auto straight quarter of growth...
$14 trillion
loans raise concerns
Recession
BY BEN LEUBSDORF
12
Delinquency rates have
been creeping higher for certain loans in a sign that some
Americans are under growing
financial stress as the total
debt held by U.S. households
continues to hit new highs.
The Federal Reserve Bank of
New York said Tuesday that
household debt totaled $12.955
trillion last quarter, up 0.9%
from the spring for a 13th
straight quarterly increase. That
was the most on record, though
the figure wasn’t adjusted for
inflation or population growth.
As a share of U.S. economic
output, household debt was
about 66% last quarter versus
a high of around 87% in 2009.
“Overall, the picture looks
healthier than it did a decade
ago,” according to Adam
Slater, lead economist at Oxford Economics.
Broad growth in borrowing
over the summer months was
the latest sign of consumer
confidence as the U.S. economy enjoys the lowest unemployment rate in nearly 17
years. After years of deleveraging in the wake of the
2007-09 recession, household
debt has risen more than 16%
since the spring of 2013.
Some 4.9% of debt outstanding was delinquent as of
Sept. 30, ticking up from three
months earlier. Late-payment
rates on the whole remain low,
but flows into delinquency
have risen in recent years for
credit-card and auto debt.
One continued concern: The
sharp rise in delinquency for
auto loans made to subprime
borrowers by auto-finance
firms, usually via auto makers
or dealers. The New York Fed
10
Other
Student loans
Credit cards
Auto loans
Home-equity
revolving
Mortgages
8
6
4
2
0
2003
’05
’10
’15
...and the share of debt considered seriously delinquent, at least 90
days late, is down since the recession—but now rising for auto loans.
14%
Recession
12
Student loans
10
8
Credit cards
Other
6
4
Auto loans
Total
Home-equity
revolving
Mortgages
2
0
2003
’10
Source: Federal Reserve Bank of New York
said the low overall delinquency figure masks significant
deterioration in those loans.
The smaller number of subprime auto loans made by banks
and credit unions have fared
better, “in part reflecting differences in underwriting standards,” said New York Fed economist Wilbert van der Klaauw.
But even with its growth in
recent years, the volume of
auto loans outstanding is
dwarfed by housing-related
debt, the major form of borrowing by U.S. households.
’15
THE WALL STREET JOURNAL.
The size of the subprime
auto segment is “not insignificant, but it’s a great deal lower
than, say, subprime mortgages
were in 2007,” Mr. Slater said,
and so “arguably unlikely to
create the same kind of losses
if it goes very bad.”
New York Fed economists
wrote on the bank’s website
that “although the impact on
the larger financial sector may
be muted, there are over 23
million consumers who hold
subprime auto loans.”
In general, many new loans
Producer Prices
Jump, Signaling
More Inflation
WASHINGTON—The prices
that businesses pay for goods
are picking up, a potential precursor to more consumer-price
inflation.
The producer-price index, a
measure of inflation experienced by businesses, increased
2.8% in October from a year
earlier, the largest year-overyear increase in more than five
years, according to a report released by the Labor Department Tuesday.
“If producers see more inflation, then consumers are
gonna get it sometime, somewhere in the end,” said Chris
Rupkey, chief financial economist at MUFG. “Inflation is
starting to rear its ugly head
at the producer level.”
Increases in the amount
that businesses paid for goods
and services decelerated from
2012 to 2015 and fell in 2015,
as oil prices slumped and the
dollar strengthened, making
imports cheaper.
Now, gas prices are rebounding and the beginning of
2017 saw a weakening dollar,
pushing up what businesses
last quarter went to households with healthy credit. The
median credit score for auto
loans originated in the third
quarter was 705, and the median credit score for new
mortgage borrowers was 760.
Mortgages make up more
than two-thirds of overall
household debt and totaled
$8.743 trillion in the third
quarter, up $52 billion from
the spring. Home-equity lines
of credit, meanwhile, fell by $4
billion to $448 billion.
Auto loans outstanding
pay and potentially decreasing
profit margins. This could
cause business owners to raise
what they charge customers.
Excluding the volatile food,
energy and trade services categories of the producer-price index, prices increased 2.3% from
a year earlier, the fastest yearon-year price increase since the
middle of 2014. Multiple aspects of business spending
have increased at more rapid
rates, including the cost of
transporting and warehousing
goods.
“Costs go up and firms
eventually have to recoup
those costs with pricing,” said
Stephen Stanley, chief economist at Amherst Pierpont Securities. “The fact that the
economy is strong is allowing
firms to get a little more confident with pricing.”
The Federal Reserve is
closely monitoring inflation as
it considers another increase in
short-term interest rates by
the end of the year.
Consumer-price inflation
has continued to undershoot
the Fed’s targets, with other
inflation-related readings coming in weak, despite a tight labor market and strong economic growth, which could
pose an obstacle to the Fed’s
interest-rate plans.
—Sharon Nunn
jumped by $23 billion to $1.213
trillion. Auto makers in September and October reported
strong sales, partly because
Texans, Floridians and others
had to replace vehicles damaged by hurricanes.
Student loans rose by $13
billion to $1.357 trillion as the
fall semester got under way at
colleges and universities.
Credit-card debt was up by
$24 billion to $808 billion.
More Americans feel like a
million dollars.......................... B18
RICH PEDRONCELLI/ASSOCIATED PRESS
U.S. WATCH
Two women embrace outside a Northern California school, where a gunman opened fire Tuesday, wounding several people. Four people were killed at other locations.
CALIFORNIA
PUERTO RICO
CONSUMER SAFETY
WASHINGTON
Gunman Kills Four,
Utility Spurned
Tries to Enter School Advice on Deal
Group Issues List of
Toys It Calls Unsafe
USPS Reports Loss
For 11th Year in Row
A gunman choosing his targets at random opened fire in a
tiny Northern California town
Tuesday, killing four people and
wounding at least 10 others, including a student at an elementary school, before police shot
him dead, authorities said.
The rampage began around 8
a.m. in the community of Rancho Tehama Reserve, about 130
miles north of Sacramento,
when the gunman fatally shot a
neighbor he had been accused of
stabbing in January, Tehama
County Assistant Sheriff Phil
Johnston said.
Shortly afterward, the gunman rammed through the gate
of Rancho Tehama Elementary
School about 2 miles away and
spent about six minutes shooting into the building, striking at
least one student, Mr. Johnston
said.
Surveillance video showed
the gunman trying unsuccessfully to enter the school, authorities said.
—Associated Press
Fidget spinners, a plastic
Wonder Woman battle sword
and a remote-controlled SpiderMan drone are among the toys
topping a consumer safety
group’s annual list of worst toys
for the holidays.
World Against Toys Causing
Harm, or WATCH, unveiled the
top 10 list Tuesday at a Boston
children’s hospital. The nonprofit
organization has been releasing
the lists for more than four decades.
WATCH claims fidget spinners contain small parts that
can be a choking hazard, Mattel’s Wonder Woman sword has
the potential to cause bluntforce injuries, and Marvel’s Spider-Man drone has multiple rotating blades that can lead to
eye and other bodily injuries.
The Toy Association, an industry trade group, dismissed
the list as “needlessly frightening” to parents because all toys
sold in the U.S. meet “rigorous”
safety standards.
—Associated Press
The beleaguered U.S. Postal
Service reported a financial loss
Tuesday for the 11th straight
year, citing declining mail volume
and costs of its pension and
health-care obligations even as it
predicted another strong holiday
season of package deliveries.
It pleaded for more freedom
Puerto Rico’s power company
didn’t follow its lawyers’ advice
when it agreed to a $300 million
grid-construction contract with
Whitefish Energy Holdings LLC,
according to documents released
by a House committee probing
the now-canceled deal.
Email communications show
at least seven types of contractual protections for the public
power monopoly known as
Prepa that were recommended
by its lawyers or included in
draft documents but omitted
from an Oct. 17 agreement with
Whitefish, according to records
from the House Committee on
Natural Resources.
The emails raise new questions about a contract that is
under review by federal criminal
investigators and congressional
panels. Prepa selected Whitefish—a startup with two employees when Hurricane Maria hit—
as the general contractor for
repairing the damage without a
competitive bidding process.
—Andrew Scurria
to raise stamp prices to help
keep pace with consumer demand for ever-quicker deliveries
from online shopping.
The Postal Service reported a
loss of $2.7 billion for the fiscal
year that ended Sept. 30. That
was better than a $5.6 billion
loss in the prior year but was
mainly because of fluctuations in
interest rates that reduced
workers’ compensation expenses.
—Associated Press
CORRECTIONS AMPLIFICATIONS
Cheniere Energy Inc.’s Sabine Pass natural-gas terminal is
on the Louisiana side of Sabine
Pass, which runs between Louisiana and Texas. A photo caption
with an article about naturalgas exports in Tuesday’s Journal
Report on Energy incorrectly
said the facility is in Texas.
The Danish artist Vilhelm
Hammershøi was incorrectly
referred to as Dutch in a Life &
Arts article on Monday about
this week’s sales in New York
at the major auction houses.
A study by the University of
California, Davis, found a 6%
reduction in the use of public
transit by people who use appdriven ride-hailing services.
The Numbers column Saturday
about traffic congestion incorrectly implied the reduction
was for all transit users.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
Ex-Pimco
CEO Is
Candidate
For Fed
Vice Chair
BY NICK TIMIRAOS
AND KATE DAVIDSON
The White House is considering economist Mohamed ElErian as one of several candidates to serve as the Federal
Reserve’s vice chairman, according to a person familiar
with the matter.
The process of selecting the
central bank’s No. 2 official began this month after President
Donald Trump nominated Fed
governor Jerome Powell to succeed Fed Chairwoman Janet
Yellen when her term expires
next February, and the search
was described by people familiar with the process as still in
its early stages.
Mr. El-Erian, the former
chief executive of Pacific Investment Management Co. and a
former deputy director of the
International Monetary Fund, is
one of several candidates under
consideration for the vice chair
position, and no decisions have
been made, according to the
person familiar with the matter.
The White House has placed
a heavy focus on selecting a
vice chair with a strong background in monetary policy, this
person said.
Separately, a Kansas
banking regulator is
being considered for a
seat on the Fed board.
Separately, the White House
is considering the nomination
of a Kansas banking regulator
for a seat on the Fed’s board of
governors, according to people
familiar with the matter.
Michelle Bowman was confirmed as the Kansas bank commissioner in January and could
be nominated to a spot reserved for a community banker
or regulator of community
banks. In 2014, Congress reserved one of seven seats on
the Fed’s board for a community banker and the position
has never been filled.
Mr. Trump has an opportunity to reshape the central
bank’s policy-making team during his first year in office. The
Fed’s powerful seven-member
board of governors has three
vacancies, including the seat for
the vice chairman. He would
have a fourth opening to fill if
Ms. Yellen leaves the Fed after
stepping down as chairwoman.
Mr. Trump’s first pick for the
board, Randal Quarles, took office in October as Fed vice
chairman of supervision.
Investors have been hungry
for clues about how closely Mr.
Trump’s Fed nominees might
hew to Ms. Yellen’s policy of
slowly raising interest rates
from very low levels.
Mr. Trump has said he favors
low interest rates and wants to
see substantial deregulation.
Central-bank chiefs defend
stimulus..........................................A7
THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A3
* * * *
U.S. NEWS
BALTIMORE—The U.S. Conference of Catholic Bishops
chose a conservative archbishop for a key post Tuesday,
signaling resistance to Pope
Francis’ vision for the church
among the U.S. hierarchy.
Archbishop Joseph Naumann, of Kansas City, was
elected chairman of the committee on Pro-Life Activities.
A conservative was
elected chairman of
the committee on
Pro-Life Activities.
In a 96-82 vote, he defeated
Cardinal Blase Cupich, of Chicago, who is seen as a liberal
in the church and a close ally
of the pope.
The vote breaks a longstanding tradition of the position being held by a cardinal—
an unusual lapse of deference
in a highly rank-conscious
body—and suggests that Catholic leaders in the U.S. remain
largely resistant to the changes
Pope Francis is trying to bring.
Like all the bishops, Archbishop Naumann and Cardinal
Cupich are both strong opponents of abortion and euthanasia. Archbishop Naumann said
he would keep the committee
focused on those two issues.
Cardinal Cupich, meanwhile, indicated he would
have broadened the committee’s focus to include other issues, like the death penalty,
health care and poverty—a
list more in line with Pope
Francis’ priorities.
The cardinal is a clear favorite of Pope Francis, who
appointed him archbishop of
Chicago in 2014, then named
him to the Vatican’s Congregation of Bishops, which helps
shape the next generation of
the hierarchy. The pope elevated him to the rank of cardinal last year.
“It is clear since 2013 that a
majority of them [the bishops]
sees the message of Francis’
pontificate, esp. on life and
marriage, as not adequate for
the Catholic Church in the
U.S.A.,” Massimo Faggioli, a
theologian at Villanova University, said on Twitter after
the vote.
But the bishops also made
protection for immigrants and
refugees a theme at their annual meeting here, marking a
point of unity between Pope
Francis and the U.S. hierarchy.
Stephen Schneck, a former
director of the Institute for
Policy Research and Catholic
Studies at the Catholic University of America, said the vote
indicated continued resistance
to Pope Francis among the U.S.
bishops.
“This is obviously a break
with tradition, in that it’s going to someone who’s not a
cardinal,” Mr. Schneck said.
A vote by bishops gathering in Baltimore this week suggests U.S. Catholic leaders remain resistant to Pope Francis’ more liberal agenda.
“But I think it’s a very accurate
picture of where the U.S. episcopacy is in relation to the efforts we see coming from Pope
Francis and Rome.”
After the vote, Archbishop
Naumann acknowledged that it
had been “a long time” since
anyone other than a cardinal
had held the post. “It’s an
honor that the bishops chose
me,” he said.
©T&CO. 2017
BY IAN LOVETT
AND FRANCIS X. ROCCA
PATRICK SEMANSKY/ASSOCIATED PRESS
Papal Agenda Meets Bishops’ Resistance
A TIFFANY HOLIDAY
MATT MCCLAIN/THE WASHINGTON POST/GETTY IMAGES
House
Passes
Defense
Policy Bill
BY BEN KESLING
AND PAUL SONNE
The ABA said judicial candidates Brett Talley, above, and Steve Grasz, below, were unqualified to serve.
GOP, Bar Association Tangle
Over Judicial Nominations
BY JOE PALAZZOLO
The American Bar Association has been a key gatekeeper
for the federal courts since it
began evaluating judicial nominees in the 1940s, but it is losing influence among Republicans in the U.S. Senate who
view it as a liberal group.
Tensions between Senate
Republicans and the association, the largest organization
of lawyers in the nation, have
escalated in recent weeks after
the ABA pronounced a Nebraska lawyer unfit to serve on
the Eighth U.S. Circuit Court of
Appeals in St. Louis, citing his
“deeply-held social agenda.”
“We should completely dispel with the fiction that the
American Bar Association is a
fair and impartial arbiter of
facts,” Sen. Ben Sasse (R.,
Neb.), said on the floor of the
Senate earlier this month.
Pamela Bresnahan, chairwoman of the ABA committee
that examines federal judicial
candidates, is scheduled to testify before the Senate Judiciary
Committee Wednesday. Republican senators are expected to
interrogate her on the association’s treatment of Steve Grasz,
the Eighth Circuit nominee.
In a submission to the Senate panel, Mr. Grasz wrote
that a member of the evaluation committee that interviewed him repeatedly referred to Republicans and
conservatives as “you guys”
and asked for Mr. Grasz’s personal views on abortion, the
death penalty and adoption by
same-sex couples.
Mr. Grasz, senior counsel in
the Omaha office of Husch
Blackwell LLP, wrote that the
interviewer pressed him to admit that his personal views
would infect his judicial work.
The Senate panel could vote on
his nomination as soon as
Wednesday
Ms. Bresnahan declined to
comment before her testimony.
But in an October statement
she said the committee conducted interviews of more than
200 of Mr. Grasz’s peers, many
of whom raised concerns about
his ability to remain impartial
as a judge.
For decades, the ABA’s
Standing Committee on the
Federal Judiciary, the evaluation committee’s formal name,
has evaluated judges for their
competence, integrity and judicial temperament, issuing
Judicial candidate
Steve Grasz describes
unfair treatment by
evaluation committee.
grades that range from “well
qualified” to “not qualified.”
The ratings are meant to help
presidents and senators, who
may not be familiar with individual judicial candidates,
make informed nominations
and votes.
The association prioritizes
legal experience, favoring at
least 12 years, and experience
trying cases, according to former officials who worked on
nominations.
Since the administration of
former President John F. Kennedy, the committee has rated
37 nominees “not qualified,”
including 23 recommended by
Democratic presidents and 14
submitted by Republican presidents, an ABA spokesman said.
The two most recent Republican presidential administrations ended the ABA’s longtime
practice of screening potential
judges before the president
nominates them.
This year, the committee
has deemed four nominees
submitted by President Donald
Trump, a Republican, unqualified to serve, including a 36year-old Justice Department
official, Brett Talley, who failed
to disclose on his Senate questionnaire that his wife is chief
of staff to the top lawyer in the
White House.
Seven nominees of former
President George W. Bush, a
Republican, received unqualified ratings. Former President
Barack Obama, a Democrat
who allowed the organization
to review candidates before he
nominated them, sent only
judges deemed qualified or
better by the group to the Senate, according to a former
White House lawyer.
The Republican-controlled
Senate Judiciary Committee
has held four confirmation
hearings on Mr. Trump’s judicial nominees before the ABA
completed its evaluations,
which association members
have viewed as a snub.
Sen. Chuck Grassley (R.,
Iowa), chairman of the Senate
Judiciary Committee, “does
not believe that outside
groups should influence the
schedule of the Judiciary
Committee’s official business,”
a spokesman said.
Sen. Dianne Feinstein (D.,
Calif.) has criticized the practice, noting that past Republican and Democratic leadership
nearly always waited for the
ABA to complete its review before holding hearings.
WASHINGTON—The House
of Representatives overwhelmingly passed an annual defense
policy bill on Tuesday, sending
a recommendation for a boost
in military funding to the Senate for approval before it
heads to President Donald
Trump for his signature.
The National Defense Authorization Act for 2018 designates nearly $700 billion for
defense programs, surpassing
current budget spending caps
established in 2011 and exceeding by $26 billion the
amount that Mr. Trump originally sought, though he more
recently boosted the number
he said he would support.
The House passed the measure, known commonly as the
NDAA, which had been agreed
upon in a House-Senate conference committee, by a vote
of 356-70.
“Over the last several years,
we have seen an increase in
threats and a decrease in
funding for our military,” said
Rep. Mac Thornberry (R.,
Texas), chairman of the House
Committee on Armed Services,
in a statement. “This year’s
NDAA begins to rebuild our
military and to ensure we can
defend the American people.”
The defense authorization
measure, which increases
spending on readiness, training and equipment, follows a
year of accidents and mishaps,
including those involving Marine Corps aircraft and Navy
ships. A damning report released earlier this year
showed two fatal naval accidents occurred because sailors
were poorly trained and overworked.
Mr. Thornberry added that
Congress needs to ensure the
money to pay for these programs is approved as well. Under longstanding procedures, a
defense-appropriations measure comes after the authorization bill.
“Unless we follow the NDAA
with an appropriations bill at
the same levels, none of this
work can begin,” he said in a
statement. “Securing those appropriations must be Congress’s top priority before the
year ends.”
One of the most-touted policy measures in the bill is a
boost in troop pay, fully funding a 2.4% increase in pay and
preserving
payments
to
spouses of those who have
died on active duty or in retirement. It also boosts funding for missile programs by
$4.4 billion.
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A4 | Wednesday, November 15, 2017
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THE WALL STREET JOURNAL.
******
U.S. NEWS
Flood-Insurance Revamp Advances
BY ANDREW ACKERMAN
WASHINGTON—The House
voted largely along party lines
to revamp the federal flood-insurance program, which expires
in December and has struggled
in recent years to keep pace
with record disaster payouts.
The measure passed Tuesday with a 237-189 vote, largely
with Republicans for it and
Democrats against it. The bill
includes provisions designed to
spur more private-sector participation in the flood-insurance market as well as new
penalties for homeowners who
The heavy debt load
led Congress to cancel
$16 billion of the
flood program’s debt.
repeatedly receive federal insurance payouts for flood damage.
The Senate, which must
now pass its own overhaul of
the program, might not act
until next year, according to
congressional aides.
House Financial Services
Committee Chairman Jeb Hensarling (R., Texas), the measure’s primary author, agreed
to ease aspects of its provisions in a move aimed at securing support from coastal
lawmakers who had balked at
what they viewed as unduly
onerous restrictions.
“It is a bankrupt program
that is being funded, regrettably, by a bankrupt nation,” Mr.
Hensarling said.
At issue is the National
Flood Insurance Program, created more than 50 years ago
because private insurers were
unwilling to risk catastrophic
flood losses. The program’s
heavy debt load led Congress
last month to cancel $16 billion of its debt. It now has
about $6 billion to pay claims
and roughly $10 billion left
that it can borrow from the
Treasury Department, according to the Federal Emergency
Management Agency, which
manages the program.
One provision in Tuesday’s
House bill, aimed at homes
with repeat claims, would bar
the program from offering insurance to properties that accrue future claims—meaning
claims made after the bill becomes law—in excess of three
times the amount of the replacement value of the structure. An earlier version of the
legislation included past
claims in that calculation.
Democrats said the bill
would make the program too
expensive for low-income policyholders.
Robert Moore, a senior policy analyst at the environmental group Natural Resources
Defense Council, which is neutral on the legislation, said
one of its shortcomings is
that it doesn’t do anything to
address the cumbersome system in which the program
buys out homeowners of
properties that repeatedly
flood. “It’s inexcusable that
the only timely assistance
that we offer people is to rebuild, when that’s in nobody’s
interest,” he said.
—Natalie Andrews
contributed to this article.
WASHINGTON
WIRE
CONGRESS
Number of
properties by
ZIP Code
President’s Nuclear
Authority Scrutinized
Northeast states
Account for 31% of
repetitive loss properties
Where repetitive loss
properties are located
400
300
200
100
New
York
1
Virginia
and the
Carolinas
7% of
properties
Houston
New
Orleans
Gulf Coast states
49% of properties
Properties by total payout amount
As a share of total properties and payout
Payouts per property
Among all properties
Properties with a total
payout amount of:
Payouts
Percentage of
all properties
Percentage of
all payouts
$1 million or more 1.7%
$750,000 -$1M 1.0%
$500,000 -$750,000 2.8%
$250,000 -$500,000 16.7%
14.8%
4.2%
8.1%
26.2%
2
811 properties
3
1,045
4
4,058
5
3,304
6
2,109
7
1,344
8
809
9
Less than $250,000 77.8%
46.7%
477
10
332
11
203
12
129
13
90
14 65
15+
Note: Condominiums are counted as a single property.
Source: Data provided by the Natural Resources Defense Council via FEMA
204
THE WALL STREET JOURNAL.
U.S. senators took a rare look
Tuesday at the decades-old presidential authority to launch a nuclear strike, posing questions at a
hearing about the process President Donald Trump would follow
if he were to order such an attack.
Sen. Bob Corker (R., Tenn.), the
Senate Foreign Relations Committee chairman and a critic of Mr.
Trump, didn’t explicitly criticize
the president, a fellow Republican.
But after an hour of testimony
with little overt reference to Mr.
Trump, Sen. Chris Murphy (D.,
Conn.) said Mr. Trump’s presidency is what has prompted a renewed focus on this issue.
“We are concerned that the
president of the United States is
so unstable, is so volatile, has a
decision-making process that is so
quixotic, that he might order a nuclear-weapons strike that is wildly
out of step with U.S. national security interests,” Mr. Murphy said.
The White House didn’t respond to a request to comment.
—Felicia Schwartz
CYBERSECURITY
U.S. Computers Have
Russian Software
About one-sixth of U.S. agencies found a Russian cybersecurity
firm’s software on their computers
after the government ordered
them to look for the company’s
products and remove them. The
government said 15% of the 96
agencies that responded found
the products on their systems.
—Paul Sonne
Business Groups Press Efforts to Protect ‘Dreamers’
WASHINGTON—Large U.S.
businesses and their lobby
groups are redoubling a push
for legislation to protect
young people brought to the
U.S. illegally as children, urging lawmakers to act before
the year is out.
On Wednesday, executives
from about 40 companies
travel to Capitol Hill to lobby
members of Congress, with
some of them bringing along
so-called Dreamers who work
for them. Also this week, the
advocacy group Fwd.us, which
is backed by tech companies,
is releasing a study on the
number of people who would
lose their jobs if Congress
doesn’t act.
Early next month, a group
called New American Economy
is planning a day of proDreamer events across the
country, involving local chambers of commerce and business leaders.
The push comes as key Sen-
MOORE
Continued from Page One
gay marriage and to take down a
Ten Commandments monument
on state property. His Senate
campaign has been built around
his persona as an anti-establishment outsider.
As Mr. McConnell and others
spoke openly of blocking him,
Mr. Moore sent a message on
Twitter: “The good people of
Alabama, not the Washington
elite who wallow in the swamp,
will decide this election!
#DitchMitch.”
Later,
he
tweeted: “Mitch McConnell’s
days as Majority Leader are
coming to an end very soon.
The fight has just begun.”
Speaking to supporters at a
church in Jackson, Ala., on
Tuesday night, Mr. Moore portrayed himself as a victim of attacks by the media and both political parties. “I am the only
one who can unite Democrats
and Republicans,” he joked,
“because I seem to be opposed
by both of them.”
His fate may be shaped by
the Alabama Republican Party,
which could withdraw its support for his campaign but is
powerless to get his name off
the ballot. The party’s steering
committee may meet later this
week to consider the matter,
Republicans familiar with the
situation said.
Among the ideas being discussed: having Mr. Sessions
quit the cabinet and reclaim his
seat, though it is unclear how
exactly that might happen; urging Mr. Strange to quit before
ate Republicans work to find a
package of immigration measures that can win bipartisan
support. A group of GOP senators is close to agreement on a
package that includes border
security measures along with
legalization for a band of
young undocumented immigrants who are now protected
by the Deferred Action for
Childhood Arrivals, or DACA,
program.
Republicans also favor enforcement aimed at people living illegally inside the country,
though they know it will be
harder to win Democratic support for those measures. Another question is how many
people will be covered by the
legislation, with Republicans
favoring a group that is more
limited than versions preferred by Democrats.
In September, President
Donald Trump ended the
DACA program, established by
executive order in the previous administration, which provides work permits along with
protection from deportation.
Absent congressional action,
those benefits will begin to
end in March.
Some Republicans oppose
legislation giving these people
legal status as a form of amnesty that will encourage
more illegal immigration. Others support it but only if coupled with more enforcement.
Democrats are pushing for
legislation addressing the
matter before the year is out,
and hope to force the matter
as part of a year-end spending
bill, when their votes will be
needed.
Neil Bradley, chief policy officer at the U.S. Chamber of
Commerce, which plans a
Wednesday news conference,
said their lobbying will be directed at persuading Republicans to approve the protections but also to Democrats.
Democrats support a legalization program, he noted, but
may need to be pushed to
make compromises needed to
win GOP support.
Protesters this month called on the Senate to pass legislation in support of DACA protections.
the Dec. 12 election to create a
new vacancy; and letting the
election go ahead and risking a
loss to Mr. Jones.
A
Justice
Department
spokesman declined to comment
about the possibility of the attorney general stepping down to
return to the Senate. A person
close to Mr. Sessions, who spent
five hours Tuesday being questioned by the House Judiciary
Committee about his contacts
ties between Russia and Trump
campaign associates during the
2016 presidential election. Mr.
Trump has denied any collusion
with Moscow, which has said it
didn’t meddle in the campaign.
Mr. Sessions has recused
himself from that probe because of his role as a top supporter and adviser to the
Trump campaign. Any successor would likely face calls from
Democrats to pledge not to remove Mr. Mueller or interfere
in the probe.
The GOP’s hands are largely
tied because under Alabama
election law, it is too late for
Mr. Moore’s name to be removed from the ballot. Alabamians have been casting absentee
ballots with his name on them
since Oct. 18.
Terry Lathan, chairman of
the Alabama Republican Party,
hasn’t responded to requests
for comment since the scandal
broke. But in a Sunday interview with the Alabama Political
Reporter, she issued a warning
against GOP officials endorsing
a write-in candidate or backing
Mr. Jones.
“It would be a serious error
for any current elected GOP official or candidate to publicly
endorse another party’s candidate, an independent, a thirdparty or a write-in candidate in
a general election as well,” Ms.
Lathan was quoted as saying. “I
have heard of no GOP elected
official or candidate that is
even considering this option.”
Even if Mr. Moore wins, GOP
leaders worry that having him
in the Senate will be a political
liability for all Republicans up
for re-election in 2018.
Mr. McConnell said Tuesday
that if Mr. Moore is elected, he
would be sworn in but would
immediately be subject to an
ethics investigation, including
testifying under oath, and the
option of expelling him would
be on the table. That would
pave the way for the governor
to appoint a new successor, including putting Mr. Sessions
back in his old seat.
At issue are allegations reported by the Washington Post
last week that Mr. Moore, when
he was in his early 30s, had initiated relationships with four
teenagers—including sexual advances made on one girl who
was 14. A fifth woman Monday
held a press conference and described a 1977 incident when
Mr. Moore allegedly assaulted
her in a car when she was 16.
Mr. Moore has denied the reported incidents occurred.
Democrats had held little
hope for the race when Mr. Sessions left because Alabama
hasn’t had a Democratic senator since the 1997 retirement of
Sen. Howell Heflin. It went for
President Donald J. Trump with
62% of the vote in 2016. When
Mr. Sessions ran for reelection
in 2016, Democrats didn’t field
a candidate.
Mr. Jones is well known in
the civil-rights community for
having prosecuted Ku Klux Klan
members for the 1963 Birmingham church bombing that killed
four girls. He has been endorsed
by civil-rights icon Rep. John
Lewis (D., Ga.), who campaigned
with Mr. Jones last week.
—Kristina Peterson
and Del Quentin Wilber
contributed to this article.
‘His campaign is
collapsing,’ Senate
GOP leader Mitch
McConnell said.
with Russian officials during the
campaign, said he has been telling friends and associates he
isn’t interested in his old job.
If Mr. Sessions were to quit
as attorney general, it would
raise questions about the future
of special counsel Robert Mueller’s investigation of alleged
SHAWN THEW/EPA/SHUTTERSTOCK
BY LAURA MECKLER
Sessions Now Recalls
Discussion of Russia
BY ARUNA VISWANATHA
AND BYRON TAU
Attorney General Jeff Sessions said Tuesday that he
now recalls a 2016 meeting
with a Trump campaign adviser at which the aide spoke
about contacts with Russians,
after earlier saying he knew of
no such contacts.
Mr. Sessions’ comments, in
an appearance before the
House Judiciary Committee,
highlighted the challenges facing investigators, lawmakers
and others in assembling a precise account of the communications between Trump campaign
officials and people connected
to the Russian government.
In a five-hour appearance,
Mr. Sessions blamed a turbulent campaign and faulty memory for his failure to recall
contacts that two former
Trump campaign advisers have
disclosed in recent weeks.
“None of you had a part in
the Trump campaign,” Mr. Sessions told committee members.
“And it was a brilliant campaign, I think, in many ways.
But it was a form of chaos every day from day one.”
Mr. Sessions, a former senator from Alabama, served as a
senior adviser to the Trump
campaign on national-security
issues, and he has been dogged
by the continuing investigations into Russian meddling in
the 2016 campaign. Russia has
denied meddling in the election, and Mr. Trump and his
team have said they didn’t collude with the Kremlin.
The hearing came weeks after Trump campaign foreignpolicy advisers Carter Page and
George Papadopoulos said they
had informed Mr. Sessions
about contacts with Russians
during the campaign. Mr. Sessions has several times testified before the Senate that he
was unaware of any contacts.
Mr. Papadopoulos, a campaign adviser who pleaded
guilty to lying to the Federal
Bureau of Investigation, told
law-enforcement officials that
he was in a March 31, 2016,
meeting with Mr. Sessions
where he suggested setting up
a meeting between Donald
Trump and Russian President
Vladimir Putin.
Separately, Mr. Page testified
this month that he told Mr. Sessions at a dinner in the summer
of 2016 that he was traveling to
Russia, where he gave a speech
at a university in Moscow. During that visit, Mr. Page met
with Russian Deputy Prime
Minister Arkady Dvorkovich.
Mr. Sessions said Tuesday
that he now remembers the
March 2016 meeting. He also
said that while he has no reason to doubt Mr. Page’s testimony, he doesn’t recall his
presence at the separate dinner.
—Del Quentin Wilber
contributed to this article.
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* *****
THE WALL STREET JOURNAL.
U.S. NEWS
U.S. Has Leverage Over Nafta, Ross Says
BY JACOB M. SCHLESINGER
BEN NELMS/REUTERS
WASHINGTON — Commerce Secretary Wilbur Ross
defended the Trump administration’s aggressive strategy
for renegotiating the North
American Free Trade Agreement, suggesting that the U.S.
can press Mexico and Canada
into making big concessions
because they have more to
lose if the pact collapses.
A U.S. withdrawal “would
be devastating to the Mexican
economy,” Mr. Ross told The
Wall Street Journal CEO Council on Tuesday. “It’s also a bigtime problem for Canada,” he
said.
He noted that because
those countries are more dependent on the U.S. than it is
on them, the termination of
the 23-year-old pact “would be
far more damaging to them
than to us.”
Mr. Ross said it was likely
the two countries would
“come to their senses and
make a sensible deal.”
President Donald Trump
has branded Nafta “a disaster,”
and threatened to withdraw
unless the two countries agree
to rewrite the pact. Negotiations on a new Nafta began in
August, and a fifth round of
talks is slated to open in Mexico City this week. The parties
have said they aim to reach a
deal by March.
The talks hit a snag during
the last round, in Washington
in October, after the U.S. put
forth proposals that would
significantly alter the agreement in ways the trading partners have branded unacceptable.
A worker checks a load of logs in British Columbia. Ottawa has escalated its fight against declared U.S. tariffs on Canadian timber.
Canada Steps Up
Lumber Tariff Fight
OTTAWA—Canada said it intends to escalate its legal fight
against the U.S. Commerce Department’s decision to slap tariffs of roughly 20% or more on
Canadian lumber imports.
The Canadian government
filed a notice to set up a dis-
pute-resolution panel under the
terms available through North
American Free-Trade Agreement. These expert panels have
the power to overturn or sustain tariffs imposed by the U.S.,
Canada or Mexico on goods
from one of its Nafta partners.
The Trump administration
wants to largely repeal the dispute-settlement system in talks
to renegotiate Nafta, which restart later this week in Mexico.
Canada has repeatedly said it
won’t budge on its insistence
the panel system remain in
place.
A spokesman for Canadian
Foreign Minister Chrystia Freeland said the U.S. decision to
impose duties against Canadian
lumber imports is “unfair, unwarranted and deeply troubling.”
He added Canada “will forcefully
defend” its lumber industry, including through litigation.
Tuesday’s development “signals the importance to the Canadian government—and its Nafta
negotiators—of keeping the dispute-settlement provisions in the
deal,” said Chad Bown, a senior
fellow at the Peterson Institute
for International Economics in
Washington. How to deal with
the dispute-resolution panels
have emerged as a major flashpoint in Nafta renegotiations.
—Paul Vieira
Among them: a proposal
that would “sunset” the agreement, making it expire after
five years unless the parties
agreed to renew it, and a plan
to increase the requirement
for how many cars would need
to be made in North America
and in the U.S. to qualify for
Nafta tariff breaks.
Many U.S. business leaders
have expressed concern about
the effect on their operations
if Nafta were to collapse and
have disagreed with Mr.
Ross’s assertion that the U.S.
held significant leverage over
Mexico and Canada. They
have said those countries
have begun seeking trade
deals with other countries
that could soften the blow
from diminished access to the
U.S.
Michael Froman, who ran
trade policy for President Barack Obama, also questioned
Mr. Ross’s confidence in U.S.
power. “While it’s true that
Mexico and Canada are more
dependent on us than we are
on them, it turns out they
have trade politics too,” said
Mr. Froman, who was in the
audience for Mr. Ross’s remarks. “And there are limits to
the degree to which you can
push them and still reach an
agreement,” he said.
During his appearance, Mr.
Ross also expressed frustration with the vocal disagreement from American business
and lawmakers with the administration’s Nafta negotiation strategy.
The longtime investor was
asked to compare the process
of negotiating business deals
with trade deals.
“It’s much better to negotiate anything in a conference
room than in an open stadium,” Mr. Ross said. “That’s a
very big complication.”
He explained that “as one
special-interest group—agriculture for example—gets nervous, they start screaming and
yelling publicly.” Then “Congress people, they start
screaming and yelling publicly
and that just complicates the
negotiations,” he said.
“Frankly, it makes the negotiations harder,” he said.
Doubts Emerge on Tax Plan Details Ending Mandate Brings
Risks to Cost, Coverage
BY RICHARD RUBIN
REPEAL
Continued from Page One
nomic-policy goal. So far, in
their effort to overhaul the tax
code, they have made progress
in overcoming internal frictions over deficits, taxes on
the wealthy, state and local deductions, child tax credits and
business taxation. But they haven’t solved all those challenges yet, and Tuesday’s
move adds health care to that
list.
Senate Majority Leader
Mitch McConnell (R., Ky.) said
Tuesday that he was confident
in the tax bill’s chances. He
contrasted it with the effort to
repeal the ACA outright earlier this year. “Every meeting I
had on health care was like a
trip to get a root canal,” he
said at The Wall Street Journal’s CEO Council. “Nobody
wanted to be there.”
BY STEPHANIE ARMOUR
Tax-overhaul proposals divide
landlords..................................... B18
Republican plans to end the
Affordable Care Act’s rule that
most people must have health
insurance would allow consumers who don’t want coverage to shed it, but it could
drive premiums higher for
those who keep it.
Eliminating the individual
mandate would increase the
number of people without insurance by four million, according to the nonpartisan
Congressional Budget Office, a
number that it says would rise
to 13 million by 2027.
But those who buy private
insurance, rather than getting
it at work or through a government program, would see their
premiums rise by about 10% in
most years of the coming decade, the CBO has forecast.
The individual mandate requires most people who can
afford coverage to have it.
Those who decline must pay a
fine of 2.5% of household income or $695 a person, whichever is higher. About seven
million people in 2016 reported paying a penalty for
not having coverage the year
before, according to the Internal Revenue Service.
The mandate’s goal is to ensure that young, healthy people
obtain coverage to help offset
the costs of older and sicker
consumers. Knocking down the
mandate would result in higher
premiums because those
healthier people would be less
likely to purchase insurance if
they don’t face a penalty.
Democrats and industry
groups castigated Senate Republicans for including the re-
peal in their tax package. An
array of industry groups—including the American Medical
Association and America’s
Health Insurance Plans, a major
insurers’ organization—wrote
congressional leaders urging
them to keep the mandate.
But some House Republicans applauded Senate Republicans’ move after House GOP
leaders opted not to include
the repeal in their own tax
overhaul.
“It appears the Senate is
keeping its promises,” said the
House Republican Study Committee, a conservative group
that represents numerous GOP
House members. “The House
should do the same. Let’s repeal the individual mandate
and restart the process of repealing Obamacare.”
The inclusion of the mandate will likely be accompanied by a move to advance bipartisan legislation aimed at
shoring up the ACA’s fragile
individual insurance markets.
That legislation would restore
payments insurers use for subsidies to low-income consumers. President Donald Trump
recently cut off those payments, saying they hadn’t
been properly authorized by
Congress.
Democrats have called for a
vote on the bipartisan bill, but
GOP leaders have been reluctant to bring it to the floor because Mr. Trump has suggested he wouldn’t back it.
Republicans now say they
hope to vote on the legislation
as a way to diminish any disruption in the individual insurance market sparked by repealing the individual mandate.
lose their health insurance or
pay higher premiums.
House Republicans, who aim
to pass their own version of a
tax plan Thursday, began the
day wary of moving too fast on
taxes on their own. Among
their worries was that Mr.
Trump might criticize their effort, as he did during the
health-care fight earlier this
year. They also worried about
whether Senate Republicans
would be able to follow
through and pass tax legislation, avoiding a repeat of the
tensions that doomed their
health-care bill earlier this
year.
“We just want to know if
we’re headed for the same
rocks for being the first kid to
go to the blackboard to try to
spell the word,” said Rep. Mark
Amodei (R., Nev.), who has
told House Republican leaders
that he is still undecided.
Still, House leaders said
they were confident they
would limit defections and
pass their own tax bill, which
doesn’t address the individual
mandate.
House Speaker Paul Ryan
(R., Wis.) indicated Tuesday
evening that the House would
wait to see if the Senate can
pass a tax bill that repeals the
individual mandate.
“We didn’t want to complicate tax reform and make it
harder than it otherwise would
be,” Mr. Ryan said at a Fox
News town-hall meeting on
taxes Tuesday evening.
“I want to support a good
tax reform bill in one form or
the other here. So I think it’s
important we keep the House
bill moving,” said Rep. Doug
LaMalfa (R., Calif.), who said
the tougher vote will be on the
final product of a House-Senate agreement. “That’s where
the rubber meets the road.”
Other differences between
the House and Senate linger.
For example, the House bill
preserves a $10,000 deduction
for property taxes; the Senate
bill would repeal that, along
with deductions for state and
local income and sales taxes.
Focus in the Senate will
now turn to Republicans who
may be hesitant to vote for a
package that raises the number of people without health
coverage.
GOP Sens. Susan Collins of
Maine and John McCain of Arizona haven’t indicated they
would oppose the tax bill over
the individual mandate. Both
voted against the final Senate
effort to dismantle the ACA in
late July, along with Sen. Lisa
Murkowski (R., Alaska). “My
concern is that if we combine
the health-care issues with tax
reform, we make it far more
controversial,” Ms. Collins told
reporters Tuesday.
Mr. McCain said he needed
to evaluate repealing the individual mandate as part of the
broader tax bill.
WIN MCNAMEE/GETTY IMAGES
WASHINGTON—Lawmakers and tax lawyers are raising
doubts about a crucial piece of
the Senate tax plan that would
affect small businesses, partnerships and real-estate developers as the Senate Finance
Committee takes up the overhaul this week.
The Senate’s plan for taxing
so-called pass-through businesses such as partnerships
and S corporations departs
from the House approach. It
features a deduction of 17.4%
of income instead of a special
25% rate that only applies to
some business income, as in
the House bill.
A pass-through provision
that is too generous to businesses risks busting the $1.5
trillion cap on the size of the
tax cut under the GOP tax
plan. But an overly restrictive
rule could turn business
groups against the Republican
tax agenda.
“Nobody has any idea how
this works,” said Victor Fleischer, a tax law professor at
the University of San Diego
who was, until recently, a
Democratic aide to the Senate
finance panel. “Nobody knows
the answers, and that’s what
happens when you try to jam
something through on short
notice.”
Regular corporations pay
the corporate tax of up to 35%,
and their taxable owners pay a
second layer of tax on dividends or capital gains. Passthroughs pay no corporatelevel tax. Instead, profits pass
through to owners’ individual
returns, where they’re taxed at
rates up to 39.6%.
Republicans want to cut the
At the Senate finance panel, doubts surfaced on how tax changes would affect pass-through firms
corporate rate to 20% from
35% and have promised passthroughs rough parity with a
rate cut of their own.
The framework released by
the Trump administration and
congressional Republicans in
September called for a 25%
top rate for pass-through income. Neither the House nor
Senate bills truly provide that
rate for most income.
The House shows a 25%
rate, but requires many business owners to report 70% of
their pass-through profits as
ordinary income, subject to ordinary tax rates as high as
39.6%. That would create a
blended top rate of about 35%.
Professional service businesses, including lawyers and
consultants, wouldn’t get any
of their income taxed at the
lower rate.
The S Corporation Association told its members the Senate bill “falls well short” of
promises lawmakers had
made.
Sen. Ron Johnson (R., Wis.)
said Monday he was frustrated
by the process and by a result
that would leave passthroughs paying higher tax
rates than corporations.
“We were supposed to leave
that competitive balance…in
place basically untouched
when we made American businesses overall globally more
competitive,” he said. “I don’t
know what happened along
the way, but we’re talking
A federal analysis showed
repealing the mandate would
increase by 13 million the number of people without health insurance by 2027 and increase
premiums. It also complicates
the economics of health coverage by shrinking the pool of
healthy and younger people
who are insured, making it
harder to pay for those who
end up with big health expenses. All that could spook
moderate Republicans who
balked at earlier attempts to repeal the ACA because it would
raise the number of uninsured.
The repeal, though, would
lower the federal deficit an estimated $318 billion over a decade. Moreover, Republican
lawmakers have been pressed
by President Donald Trump to
knock down the mandate, a requirement that conservatives
see as onerous and which the
president
could
weaken
through executive action even
if GOP lawmakers don’t act.
Republican aides cautioned
Tuesday that they couldn’t
guarantee there were enough
votes to pass a tax bill with
the health-care provision attached. The Finance Committee aims to finish the bill this
week, setting up a vote by the
full Senate after Thanksgiving.
Republicans pitch the
mandate repeal as a
tax cut for middleincome households.
Democrats panned the move
and pointed to Republicans’ insistence on cutting the corporate tax rate to 20%. “The tax
bill is going to hit the American people with a health-care
double whammy,” said Sen.
Ron Wyden (D., Ore.), warning
that millions of people would
somewhere about 33% to 35%
rather than 25%.”
The committee’s Republican
aides said the GOP may suggest changes soon to the plan.
“This will be something
they’ll reconcile” between the
House and Senate, Treasury
Secretary Steven Mnuchin said
Monday at The Wall Street
Journal’s CEO Council. “In
both these cases, what is important is that businesses get
the benefit of this and that’s
what’s about growth and the
economy.”
—Siobhan Hughes
and Nick Timiraos
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A7
* *
WORLD NEWS
Central Bankers Defend Stimulus
BY TOM FAIRLESS
FRANKFURT—The heads of
four of the world’s most important central banks defended
their sweeping crisis-fighting
measures in a rare joint appearance, and discussed how
words themselves have become a vital policy tool.
The leaders of the Federal
Reserve, European Central
Bank, Bank of Japan and Bank
of England—whose terms all
end in the next two years—
have relied heavily on verbal
communication in recent years
as their policy decisions have
grown more complex.
Janet Yellen’s departure as
chair of the Federal Reserve in
February will mark the beginning of a long farewell to the
group of central bankers who
helped steer advanced economies out of the financial-crisis
era. The current crop of officials shared a willingness to
experiment with unorthodox
policies to stimulate their
economies, and worked closely
together at times.
All four have faced political
attacks over their actions.
Ms. Yellen, who faced criticism from Donald Trump during last year’s election campaign, will be the first Fed
chair since the 1970s not to be
reappointed. Mr. Trump accused her shortly before the
election of “doing political
things” by keeping interest
rates low. The Fed raised interest rates once last year, despite initially signaling it expected multiple increases.
Ms. Yellen defended her
track record on Tuesday at the
ECB’s Central Bank Communications Conference in Frankfurt, arguing that Fed officials’
interest-rate expectations didn’t
amount to a policy decision. “I
do think market participants
ARMANDO BABANI/REX/SHUTTERSTOCK/EUROPEAN PRESSPHOTO AGENCY
Chiefs from U.S.,
Europe, Japan and U.K.
say their words have
become a policy tool
BY KOSAKU NARIOKA
From left, Fed Chairwoman Janet Yellen, ECB President Mario Draghi, BOE governor Mark Carney and BOJ governor Haruhiko Kuroda.
are looking for greater certainty about the policy path
than central banks are willing
to provide most of the time.”
ECB President Mario Draghi
has faced criticism that the
ECB’s ultralow interest rates
hurt savers and pensioners. Mr.
Draghi hit back on Tuesday, arguing that parts of the German
media were portraying a “different…reality” to their readers.
In a sign of growing confidence that the ECB’s policies
are working, the European
Union’s executive arm last
week revised up its forecast
for eurozone growth this year,
to 2.2%, which would be the
fastest pace in a decade.
The Japanese economy is
also enjoying its best run of
growth in more than a decade,
while prices are steadily rising—though at a moderate
pace well below the bank’s 2%
inflation goal.
The Bank of Japan has been
at the core of efforts to shake
off a cycle of weak inflation
and growth. BOJ governor
Haruhiko Kuroda defended his
track record on Tuesday, including a controversial decision in 2016 to push interest
Exports
Boost
Japanese
Economy
Bulking Up
Germany, Italy Post
Economic Growth
Central bank balance-sheet assets as percentage of gross
domestic product
100 %
Japan
75
50
Eurozone
25
U.S.
0
2007 ’08
’09
’10
’11
’12
’13
’14
’15
’16
’17
Sources: Federal Reserve Bank of St. Louis (U.S. and Japan);
THE WALL STREET JOURNAL.
European Central Bank (assets); Eurostat (GDP)
rates below zero. The bank’s
“strong commitment did work
to some extent,” he said.
Mr. Kuroda’s term ends in
April 2018. While Prime Minister Shinzo Abe said this month
that the choice of BOJ governor was still a “blank slate,”
he said he had a high regard
for Mr. Kuroda’s abilities and
praised the bank for contribut-
ing to an improved economy.
However, some of Mr. Abe’s
advisers are calling for a
shake-up candidate.
Mr. Kuroda, 73, hasn’t publicly expressed his intentions.
He has said a successor could
easily continue on the same
policy path.
Bank of England governor
Mark Carney, who is due to
FRANKFURT—Germany’s
gross domestic product grew
0.8% in the third quarter from
the second, the Federal Statistical Office said, and Italy’s
economy grew 0.5% in the
period, its national statistics
institute reported.
The eurozone’s biggest
and third-biggest economies
benefited from increased demand for their exports as the
bloc’s $10 trillion economy remained on course for its
strongest year since 2007.
—Nina Adam
step down in June 2019, has
faced criticism for his warnings
over the economic impact of
Britain’s departure from the
EU, seen by some U.K. politicians as an overly political intervention. Mr. Carney repeated
his call on Tuesday for a “reasonable transition period” that
could cushion the impact of
Brexit on the U.K. economy.
TOKYO—Japan’s economy
grew at an annualized pace of
1.4% in the July-September
quarter, marking its longest
growth streak in 16 years with
help from stronger global demand.
The growth for the seventh
straight quarter is welcome
news for Prime Minister
Shinzo Abe, who won a new
mandate from voters in a national election on Oct. 22 to
continue pushing the world’s
third-largest economy out of
years of economic malaise.
Private consumption fell an
annualized 1.8% in the quarter,
showing his economic policies
have yet to rouse consumers.
Gross domestic product
growth for the three-month
period through September was
the same as a 1.4% increase
expected by economists polled
by The Wall Street Journal.
The expansion was largely
driven by exports, which rose
an annualized 6% in the quarter.
Since Mr. Abe took office in
late 2012, he has been trying
to end years of sluggish
growth and deflation through
his Abenomics policy package,
which is aimed at getting the
economy into a cycle of rising
wages, spending and inflation.
Recently, a weaker yen and
a stronger economy in key
markets such as China and the
U.S. have boosted corporate
earnings to a record high.
Earlier in November, stock
prices surged to their highest
level in more than a quartercentury.
Yet the lack of strong wage
growth has been damping consumer spending and preventing the economy from entering
fully into the cycle sought by
Mr. Abe, economists say.
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A8 | Wednesday, November 15, 2017
* ****
THE WALL STREET JOURNAL.
WORLD NEWS
Trump Ends Trip Focused on Personal Ties
With few ‘deliverables,’
White House says
Asia sojourn was about
messaging, groundwork
China to Send Envoy
To North Korea
BY MICHAEL C. BENDER
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
MANILA—At each stop on
his 12-day, five-country Asia
tour, President Donald Trump
emphasized one aspect of his
visit above all else: his personal rapport with the heads
of state who hosted him.
He played golf with Shinzo
Abe, complimenting the Japanese prime minister’s accidental
tumble into a bunker as graceful. He persuaded South Korean
President Moon Jae-in to meet
him at the North Korea border,
a visit that thick fog forced
them to cancel. And he engaged
in a favorite pastime—making
jibes at the expense of the U.S.
press corps—along with Philippine President Rodrigo Duterte.
At the end of his stop in
Beijing, Mr. Trump beamed
while sitting next to Chinese
President Xi Jinping as his
host played a highlight reel of
their time together.
Mr. Trump returns to
Washington from his first Asia
trip with a good deal of bonhomie with his fellow leaders
but few tangible outcomes.
“This trip will be remembered more for the messages
it sent than the policy it pro-
President Donald Trump waved Tuesday before boarding Air Force One in Manila at the conclusion of a 12-day trip through Asia.
duced,” said Mira RappHooper, a senior fellow at
Yale’s Paul Tsai China Center.
Commercial deals announced in China were mostly
signals of intent, rather than
ironclad agreements. New
commitments regarding North
Korea were verbal and voluntary. Instead of focusing on
the trade imbalances that he
“dwells on,” as Chief of Staff
John Kelly said in Vietnam,
Mr. Trump recounted his
flourishing relationships with
Asia leaders during public re-
marks in the trip’s final days.
“It was a red carpet like nobody, I think, has probably
ever seen,” Mr. Trump
said Monday in Manila, summing up his view of the treatment he received in each of
the countries he visited. “That
really is a sense of respect,
perhaps for me a little bit, but
really for our country. And I’m
very proud of that.”
Mr. Kelly said the trip was
mostly about messaging, adding that the intent was to lay
the groundwork for more di-
BEIJING—China will send
a special envoy to North Korea this week, according to
China’s official Xinhua News
Agency.
Song Tao, a special envoy
of President Xi Jinping, will
leave for North Korea on Friday, Xinhua said. It said the
visit would include briefings
on last month’s Communist
Party congress.
The announcement comes
days after a visit to Beijing
by President Donald Trump.
The U.S. has repeatedly
pushed Beijing to do more to
pressure North Korea to slow
its development of nuclear
weapons, and Mr. Trump did
so again during his summit
with Mr. Xi in Beijing.
It wasn’t clear from the
Xinhua report whether
Pyongyang’s nuclear program
would be on the agenda during Mr. Song’s visit.
—Sofia McFarland
rect negotiations on trade that
will come later, and “of course,
North Korea. Looking for allies
to help them come to the right
decision about their weapons.”
One adviser said discussions
were already under way for
another Trump trip to Asia.
Manila Eases the Path for Beijing at Asean Summit
TA I WA N
CH I N A
CHINA’S
‘9-DASH LINE’
MARITIME
CLAIM
Sou th
Chin a
Sea
Reefs China is building
into artificial islands
SPRATLY ISLANDS
China, Taiwan, Malaysia, Brunei,
Philippines and Vietnam claim
sovereignty over all or parts of
these scattered islands and reefs.
PH I L I PPI N E S
V IE T NAM
Subi Reef
Hughes Reef
Gaven Reefs
Mischief Reef
Fiery Cross Reef
Johnson South Reef
Cuarteron Reef
300 miles
BRUNEI
300 km
I N D O N ESI A
M A L AYSI A
THE WALL STREET JOURNAL.
BY BEN OTTO
MANILA—Philippine President Rodrigo Duterte concluded an annual meeting of
Southeast Asian nations with
warm words for China—the
neighboring power whose territorial claims have galvanized
opposition from some of the
region’s smaller nations at
past summits.
Mr. Duterte wrapped up
meetings Tuesday describing
China as gracious for agreeing
to begin talks on a longawaited code of conduct in the
South China Sea.
The Philippine president
had established after taking
office last year that he
wouldn’t challenge Chinese expansion in the disputed waters, eliminating a flashpoint
that had roiled gatherings of
the 10-member Association of
Southeast Asian Nations.
This year’s Asean summit
was the first to be attended by
U.S. President Donald Trump.
China and the U.S. were
among nations that courted
Asean members with promises
of trade and investment at the
two-day summit, which was
also attended by Chinese
Prime Minister Li Keqiang and
leaders from Japan, Canada
and other nations.
Among declarations at the
summit’s conclusion on Tuesday was a commitment to advance negotiations on a freetrade agreement, the Regional
Comprehensive
Economic
Partnership, that includes the
10 Asean nations and six other
states, including China.
The U.S. under Mr. Trump
has continued the Obama administration’s assertion of the
right to freely navigate the
seas and has stepped up patrols by U.S. warships through
the areas China claims. During
his Asia trip, Mr. Trump released joint statements with
Philippine and Vietnamese
leaders opposing militarization in the waters.
The South China Sea disputes pit several Asean members against each other and
against China, which is for
many their chief trading partner. China claims almost 90%
of the waters, overlapping
with claims of the Philippines,
Vietnam, Malaysia, Taiwan
and Brunei.
“The Philippines opted for a
friendlier relationship with
China” and that has benefited
the entire region, Philippine
presidential spokesman Harry
Roque said on Monday.
China has changed the
Philippine president’s
softer take on South
China Sea alters the
balance at gathering.
game in the South China Sea
in recent years by building
and militarizing islands in the
strategic waters.
Mr. Duterte’s predecessor,
Benigno Aquino III, stirred
China’s wrath by taking Manila’s claim in the sea to a
United Nations-linked tribunal,
which concluded just after Mr.
Duterte came to office in
mid-2016 that there was no
basis for China’s sweeping
claims.
Mr. Duterte decided not to
seek enforcement of the tribunal’s finding. In return, he
earned pledges of billions of
dollars in economic and business deals in Beijing.
Mr. Duterte is “doing what
China wants all the claimant
countries to do: sit down and
talk bilaterally,” said Ian Storey of the Singapore-based
ISEAS-Yusof Ishak Institute.
Mr. Keqiang, the Chinese
premier, said on Monday that
Beijing was committed to
peace and stability in the region and to starting consultations on a code of conduct,
something Asean and China
agreed to create more than a
decade ago but has never become reality.
Work between Asean and
China toward a code of conduct in the South China Sea is
expected to begin in earnest
next year, but its utility is in
doubt because countries haven’t agreed to make any of its
provisions binding.
Asian Countries Look Past China, U.S. UCLA Players Arrive
HANOI—It’s a neat narrative: America’s inevitable decline means the inexorable
rise of China.
As Xi Jinping consolidates
his power at home and promotes his $1 trillion-plus
“Belt and Road” infrastructure program abroad, a
“post-American” age dominated by the
Middle Kingdom is indeed
becoming easier to imagine.
But wait.
Asian countries have other ideas. When
Mr. Xi and Donald Trump
joined an annual gathering of
Asia-Pacific leaders in Vietnam
last week, the most significant
drama didn’t star either Chinese or American actors.
G
alvanized by Japan,
the 11 remaining members of the Trans-Pacific Partnership pushed
closer to a trade pact that offers a liberal alternative to
the Chinese economic model
of protected markets and
policies favoring state “champions” while also advancing
the vision of multilateralism
as the Trump administration
pushes for one-on-one deals.
Agreement for Trans-Pacific
Partnership—intend to have
their say in the matter.
The region has alternatives,
even if Mr. Trump’s America
drifts off on its own and Mr.
Xi decides to launch a new
power play. Much of its future
will be shaped by coalitions of
countries with shared values.
T
he other big story in
Asia over the past
week was also substantially written in Shinzo Abe’s
Japan—the revival of a democratic “quad” also including
India, Australia and the U.S.
It conducted its first meeting
on Saturday in Manila.
Although this looked like
a made-in-America initiative—Rex Tillerson, the U.S.
secretary of state, floated
the idea of a “free and open
Indo-Pacific” in a speech last
month—it springs from a regional angst about China’s
growing assertiveness and
the U.S. ability under Mr.
Trump to muster a response.
Mr. Abe proposed a similar concept—he called it a
four-nation “diamond”—just
before he took power in a
landslide in 2012.
Skeptics say of the powershift scenario in which an
exhausted and muddled
America hands over Asian
leadership to a focused and
dynamic China that it is off
by a wide margin.
First of all, the U.S. decline is much exaggerated.
In addition, smaller countries have agency, too, a fact
that China appears to have
belatedly recognized.
The one certainty is that
regional power is shifting. In
relative terms, China is gaining at America’s expense.
Predicting how this will end,
however, is a fool’s errand:
The constellations that will
help determine the future
are only just emerging.
APEC 2017 NATIONAL COMMITTEE/AGENCE FRANCE-PRESSE/GETTY IMAGES
CHINA’S WORLD
By Andrew Browne
Few predicted this outcome. When Mr. Trump pulled
out of the TPP on his third
full day in the Oval Office,
commentators widely declared
the most ambitious trade deal
in history dead. Many predicted that China, excluded
from the laborious, decadelong TPP negotiations, would
step in and fill the void with
its own regional trade pact.
Yet the TPP lives. Last-minute resistance from Canada
upset plans to close the deal
last week, but its proponents
hope for a completion early
next year. Its survival challenges the simplistic notion
that Pax Americana in Asia
will give way to Pax Sinica.
What the past week has
amply demonstrated is that
Japan and other regional
players—Australia and New
Zealand also strongly back
the free-trade arrangement,
now rebranded the Comprehensive and Progressive
Vietnam’s Tran Dai Quang, left, and Japan’s Shinzo Abe at the APEC summit in Vietnam on Nov. 10.
Home From Shanghai
BY JAMES T. AREDDY
SHANGHAI—Three UCLA
basketball players who had
been under police investigation
for a week in China flew home,
hours after President Donald
Trump said he had requested
assistance on their behalf from
his counterpart Xi Jinping.
UCLA freshmen LiAngelo
Ball, Jalen Hill and Cody Riley
departed from Shanghai’s Pudong International Airport late
Tuesday on a Delta flight bound
for Los Angeles. Their exit came
after a week of tension, with the
players detained by police in
the eastern city of Hangzhou as
suspects in an investigation of
suspected shoplifting from a
Louis Vuitton boutique.
In Los Angeles, the players
walked out of the Tom Bradley
International airport terminal
shortly after 6 p.m. local time
escorted by a semicircle of airport police.
Carrying blue UCLA backpacks, the players alternated
hanging their heads and staring
up into flashing camera lights
from a crowd of reporters, as
they struggled past the crowd
to get into a black van. They
didn’t answer questions shouted
out by reporters, including on
the terms of their departure
from China, keeping complete
silence from inside the terminal
all the way into the van.
Anticipating a crowd at their
arrival, airport security rerouted the players from the
usual exits at the arrivals terminal to another one at departures, and stationed two airport
police cars and a police van on
the street for crowd patrol.
Ending his trip to Asia on
Tuesday, Mr. Trump told reporters aboard Air Force One that in
recent days he asked the Chinese president for help. Mr.
Trump called the incident unfortunate but said he had had “a
great conversation” about the
players with China’s leader and
hoped they would be leaving
soon. “President Xi has been
terrific on that subject,” he said.
The shoplifting investigation drew outsize attention because the players are high profile, especially Mr. Ball, who
comes from a prominent sports
family with a brother in the
National Basketball Association
and a media-hungry father, and
news of their troubles broke
hours before Mr. Xi welcomed
Mr. Trump on his first presidential visit to China.
In China, UCLA was the
guest of Alibaba Group Holding Ltd. as part of a massive
marketing campaign, which included a U.S. college-basketball game on Saturday that
was to be the three freshmen’s
debut for UCLA.
After being taken to a police
station last Tuesday after a reported theft of sunglasses at
the Louis Vuitton boutique in
Hangzhou the previous day, the
trio was returned to the team’s
hotel hours later. Along with a
few UCLA staff members, they
spent the rest of the week nestled in a set of corner rooms on
a VIP floor of the Hyatt Regency Hangzhou. They checked
out on Monday, a person with
knowledge of the situation said.
The players will answer
questions on Wednesday at
UCLA, the university said.
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A9
* * * * * *
WORLD NEWS
BY ROB TAYLOR
CANBERRA, Australia—Australians endorsed same-sex
marriage in a nonbinding national vote, delivering a win for
the country’s conservative
leader that may yet come at the
cost of a rebellion by right-wing
lawmakers in his coalition.
After a divisive two-month
campaign that included a
court challenge meant to prevent the ballot, officials on
Wednesday announced a 62%
to 38% result in favor of such
unions, paving the way for a
vote in Parliament within
days. Conducted by mail, the
ballot drew a response rate of
nearly 80%.
For Prime Minister Malcolm
Turnbull, who called for the
vote to test public opinion
ahead of a parliamentary measure on same-sex marriage he
has promised this year, the
outcome provides short-term
relief from a series of political
challenges. He supports changing the marriage laws, but
conservative rebels have
promised to try to amend or
block a bill in Parliament.
Zimbabwe’s Military Moves on the Capital
Zimbabwe’s military seized
control of state television and
launched operations to subdue
what it called the country’s
“degenerating” political estabBy Gabriele
Steinhauser in
Johannesburg and
Bernard Mpofu in
Harare, Zimbabwe
lishment, even as it denied it
was ousting longtime leader
President Robert Mugabe.
Gunshots were heard early
Wednesday near the president’s residence and at least
one explosion sounded in the
capital, Harare.
Armored vehicles drove
into Harare late Tuesday,
hours after the ruling party
accused the head of the military of treason. The moves
came just days after Mr.
Mugabe, the country’s longtime ruler, fired his powerful
vice president.
Before the military’s actions, Mr. Mugabe, who is 93
years old, appeared poised to
install his 52-year-old wife,
Grace, as one of his two deputies and hoist her into a prime
position to succeed him.
In the early hours of
Wednesday, Maj. Gen. Sibusiso
Moyo, one of the highest-ranking officers in Zimbabwe’s mil-
JEKESAI NJIKIZANA/AGENCE FRANCE-PRESSE/GETTY IMAGES
Australians
Endorse
Same-Sex
Marriage
Gen. Constantino Chiwenga, right, said Monday that the military wouldn’t hesitate to step in.
itary, read a statement on
state television denying rumors of a coup.
“We wish to make it abundantly clear that this is not a
military takeover of government,” Maj. Gen. Moyo said.
“What the Zimbabwe Defence
Forces is doing is to pacify a
degenerating political, social
and economic situation in our
country.”
He said Mr. Mugabe and his
family were safe.
“Their security is guaranteed.
We are only targeting criminals
around him who are committing
crimes that are causing social
and economic suffering in the
country in order to bring them
to justice,” he said.
“Any provocation will be met
with an appropriate response,”
Maj. Gen. Moyo warned.
He ordered all military members who are on leave to return
to their barracks. Armored personnel carriers were parked at
strategic intersections in the
business district and opposite
Mr. Mugabe’s offices.
The statement was read not
long after what sounded like
gunshots were heard near Mr.
Mugabe’s residence in Harare,
according to a nearby resident.
The U.S. Embassy in Harare
urged Americans in the country to “shelter in place” and
ordered embassy staff to work
remotely for the day, citing
“ongoing political uncertainty.”
The prospect of a possible
Mugabe dynasty had prompted
a threat from the head of Zimbabwe’s armed forces, Gen.
Constantino Chiwenga, on
Monday that the military
would intervene if the purge
didn’t come to an end.
The ruling ZANU-PF party
in a statement Tuesday evening denounced Gen. Chiwenga’s comments as “treasonable conduct” and said it
was reaffirming “the primacy
of politics over the gun.”
But early Wednesday, the
state radio station started
broadcasting Gen. Chiwenga’s
Monday statement in a loop,
without any commentary,
while the government broadcaster played music videos
throughout the night.
At stake is the long-anticipated presidential succession
in a country once vaunted as
the bread basket of Africa that
in recent decades has been
pounded by a series of economic crises. The standoff
comes as the nation was trying to re-engage with global
financial institutions such as
the World Bank and the International Monetary Fund to
overcome its latest bout of hyperinflation.
Last week’s surprise removal of Vice President Emmerson Mnangagwa, nicknamed the Crocodile, shocked
many Zimbabweans who are
unhappy with what they see as
erratic behavior and a blatant
display of wealth by Mrs.
Mugabe and her children.
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A10 | Wednesday, November 15, 2017
* *
THE WALL STREET JOURNAL.
WORLD NEWS
U.K. Lawmakers Open Brexit Parley
CHRIS J. RATCLIFFE/BLOOMBERG NEWS
BY JENNY GROSS
Prime Minister Theresa May leaving 10 Downing Street on Tuesday.
LONDON—British lawmakers on Tuesday began scrutinizing legislation that would
start the process of splitting
the U.K. from the European
Union, the first of a series of
parliamentary tests that will
measure Prime Minister Theresa May’s authority over her
country’s exit from the bloc.
In a sign of the challenges
Mrs. May faces, lawmakers
were locked in debate over the
relatively minor detail of exactly what date and time the
U.K. should leave.
The hourslong debate was
the first of eight sessions for
lawmakers to examine the EU
Withdrawal Bill, which would
enshrine EU law into the U.K.
statute book to ease the transition out of the EU.
The timing amendment,
which will be voted on at a
later date, is just one of hundreds to be debated over the
coming weeks.
Late Tuesday, lawmakers
voted against attempts by opposition parties to amend several other aspects of the legislation, including a proposal
that would have required the
government to get consent
from the devolved administrations in Northern Ireland,
Scotland and Wales before repealing the legislation that
brought the U.K. into the EU.
How Mrs. May fares
through this process will signal her ability to recover from
a period of political turmoil in
London, after a summer election gamble in which she lost
her parliamentary majority
and after she weathered two
high-profile resignations by
cabinet ministers.
A number of lawmakers said
that setting in law that the
U.K. will leave the EU at 11 p.m.
on March 29, 2019, could tie
the government’s hands if negotiations go down to the wire.
Dominic Grieve, a senior
Conservative
lawmaker,
pledged to vote against the government on the issue, calling
the amendment “mad.” “What
it does is to fetter the government’s own ability to carry out
this negotiation,” he said.
The government said it wants
the exit day enshrined into law
to remove any doubt about
when the U.K. is leaving the EU.
The EU Withdrawal Bill,
which would transpose more
than 10,000 EU laws into U.K.
law once Britain leaves the EU,
has also come under broader
criticism from some lawmakers who say it gives the prime
minister too much power to
alter laws without parliamentary approval.
As part of leaving the EU,
the government will have to
decide whether to keep,
amend or repeal a host of EU
laws that the U.K. will no longer be obligated to apply.
Significant amendments to
come in later debates include attempts to give Parliament
greater say over the final Brexit
deal and to ensure that the European Court of Justice will continue to have jurisdiction during
the two-year transitional period
after the U.K.’s planned exit.
—Jason Douglas
contributed to this article.
tion, observers and business
leaders say.
Early in his term, Mr. Trump
promised to punish American
companies that shift production
abroad, but such penalties haven’t materialized.
A big item, the overhaul of
U.S. taxes, is being debated in
Congress. But a $1 trillion infrastructure plan hasn’t panned
out. Nor has repeal of the
Obama-era health-care law.
“We believe the lack of progress over key elements of federal policies—specifically health
care, tax reform, and infrastructure funding—continues to exert downward pressure on both
public and private construction
activity,” C. Howard Nye, chief
executive of North Carolinabased Martin Marietta Materials Inc. said in an analyst call
on earlier this month.
Gary Cohn, the president’s
top economic adviser, said
Tuesday that a plan to overhaul
the nation’s infrastructure is
“the next thing on our agenda.”
Amid general improvement
for manufacturing, some industries and companies have
posted gains while others have
continued to struggle.
The performance of America’s largest manufacturing
companies also has been mixed.
Of the 10 largest industrial
companies in the S&P 500, only
Caterpillar, Honeywell Inc. and
3M Co. recorded higher thirdquarter profit and earnings per
share compared with a year
earlier, according to data from
Thomson Reuters I/B/E/S.
Profit and earnings per share
declined at General Electric Co.,
Boeing Co., United Technologies
Corp., Lockheed Martin Corp.
and General Dynamics Corp.
Two companies—United Parcel
Service Inc. and Union Pacific
Corp.—posted a rise in pershare earnings while their overall profit slipped.
To be sure, manufacturing
growth could slow if the economy tips into recession or if
there are disruptions in trade
or other geopolitical problems.
Also, a weaker dollar—which
has boosted exports by making
American
goods
cheaper
abroad—could reverse direction.
The prime minister is
presiding over a
Parliament divided on
her vision for Brexit.
FROM PAGE ONE
SHIFT
Continued from Page One
has risen, a sign companies are
spending to increase productivity. In the first quarter, investment in plants climbed a seasonally adjusted annual rate of
14.8%, the highest since early
2014. Investment in equipment
climbed 8.8% in the second
quarter, the highest in almost
two years.
A confluence of factors is
helping manufacturing, according to Stanley Black & Decker
Inc. Chief Executive James
Loree, who cited a shrinking
wage differential between U.S.
and foreign workers and rapid
technological advances. In his
particular business, “end users
love locally made products,” Mr.
Loree added in an interview on
Tuesday.
“Global macroeconomic conditions are solid,” Rockwell Automation Inc. Chief Executive
Blake Moret told analysts, citing “strong orders” and optimistic forecasts for global eco-
nomic growth and industrial
production.
Milwaukee-based Rockwell,
which sells factory hardware
and software to myriad manufacturers around the world, said
last week it expects organic
sales growth as high as 6.5% in
its 2018 fiscal year, with an additional 2.5% boost to its results
coming from a weaker dollar.
Global energy and commodity prices have rebounded amid
growth in many economies
around the world. That has
boosted sales for Illinois-based
manufacturing giant Caterpillar
Inc. and other makers of heavy
machinery used to extract natural resources.
In the process, Caterpillar
has increased its domestic
workforce by 3,200 from the
end of March to 49,700 at the
end of September.
“The overall environment is
more business-friendly and we
think that has created some
business confidence,” Caterpillar finance chief Brad Halverson
said in an interview.
Part of the optimism
stemmed from the election of a
Winners and Losers
Changes in manufacturing jobs from October 2016 to September 2017
Sectors with biggest job gains
Machinery
Fruit/vegetable preservation
Lighting
Hand tools
Fabricated metal
Confectionary
Iron, steel mills
Purchased steel products
Mineral products
Machine shops
8.8%
7.6
7.1
6.7
5.9
5.8
5.6
4.8
4.6
4.0
Sectors with biggest job losses
–9.9%
Cut and sew apparel
Other apparel
Misc. computer, electronic
HVAC, refrigeration
Fabric mills
Motor vehicles
Cleaning compounds
Textile and fabric finishing
Sawmills
Paints, adhesives
–7.2
–5.9
–3.5
–3.4
–2.7
–1.9
–1.6
–1.5
–1.4
THE WALL STREET JOURNAL.
Source: Bureau of Labor Statistics
businessman as president last
November and Mr. Trump’s
promise of reduced taxes and
fewer regulations.
The gains have happened
even though important parts of
Mr. Trump’s manufacturing
agenda haven’t come to frui-
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A11
NY
WORLD NEWS
U.S. Uses Radio to Fight Muslim Militants
Broadcasts set for
Central Asia aim to
curb Islamic State
recruitment in region
Outsourcing Terror
Foreigners who have fought in either Syria or Iraq
for Islamic State, by region
Former Soviet Republics
Middle East
The U.S. government is
testing new strategies to counter Islamic State propaganda
in Central Asia, a fertile re-
cruiting ground for militant
groups and birthplace of the
suspect who attacked New
York last month.
A new campaign by the
U.S.-funded media outlet Radio Free Europe/Radio Liberty
that is intended to dent Islamic State recruitment in
Central Asia is set to kick off
in January. It will include local
language broadcasts featuring
repentant foreign fighters,
widows, and parents who have
lost children in Syria and Iraq.
That joins an expanding
U.S. Agency for International
Development pilot program
that aims to give struggling
migrant workers alternatives
to joining militant groups.
Such efforts have taken on
fresh urgency following the
The Maghreb
South, Southeast Asia
Balkans
North America
0
2,500
*Includes Morocco, Algeria, Tunisia, Libya and Mauritania
Source: Devenir Group LLC
TIMUR KARPOV/ASSOCIATED PRESS
By Jessica Donati in
Washington and
Nathan Hodge in
Tashkent, Uzbekistan
Western Europe
The building in Tashkent, Uzbekistan, where the suspect in last month’s New York terror attack lived.
Oct. 31 attack in New York that
killed eight people. The suspect, Sayfullo Saipov, is an immigrant from Tashkent, Uzbekistan, a country that has
been a major source of Islamic
State recruits.
Far from the center of the
Arab world, former states of
the defunct Soviet Union
didn’t used to be big contributors to jihadist movements in
the Middle East.
But in recent years, migrants from former Soviet republics have been a focal point
of Islamic State recruitment in
Syria and Iraq, with more than
8,700 joining the group, according to an October report
by the Soufan Group, a security-consulting firm headed by
a former Federal Bureau of Investigation official.
New research indicates that
migrant workers from the for-
mer Soviet republics are more
susceptible to extremist propaganda while working in Russia, where they often face discrimination, police harassment
and social isolation while traveling there to search for work.
“It’s not the poorest of the
poor who go, but people who
are often relatively well off
compared to others around
them but from an area or
group that is marginalized,”
5,000
7,500
10,000
THE WALL STREET JOURNAL.
said Noah Tucker, an associate
at George Washington University’s Central Asia Program
and an editor at RFE/RL who
was involved in the research.
To be sure, researchers acknowledge the difficulty in
proving that attacks are prevented by such programs. But
they say it is possible to show
an at-risk individual’s increased
community engagement, a sign
of preventing radicalization.
The RFE/RL campaign aims
to prevent migrant workers
from developing extremist ideas
while abroad. The group’s new
broadcast project, dubbed “Not
in Our Name,” will feature videos of discussion programs
with youths about the consequences of joining Islamic State.
The USAID pilot program
selects migrant workers from
the former Soviet republics
according to “vulnerability
factors” and tries to prevent
them from becoming isolated
or desperate by providing
them with job prospects and
access to loans and education
to help keep them employed.
It is part of the Dignity and
Rights program, run by the International Organization for Migration, which aims to support
the most vulnerable of the millions of Central Asian migrants
who travel to Turkey, Russia
and Kazakhstan to find work.
The original project started
with a focus on about 20 people in 2015 and has expanded
to several hundred this year.
tutions that aren’t regulated by
the federal government, the
chief executive of the country’s
state-owned mortgage insurer
warned in a speech on Tuesday.
Canadian consumers are loading up on mortgage debt relative
to their incomes and borrowing
for longer terms as house prices
surge, said Evan Siddall, chief executive of the Canada Mortgage
and Housing Corp.
Loan-to-income ratios climbed
to 296% in 2016 from 271% in
2014, while the number of mortgages that amortize in more
than 25 years rose to 63% from
52%, according to CMHC data.
That riskier activity is expos-
ing lenders to a housing market
that many say is experiencing
bubble-like conditions, particularly in Vancouver and Toronto.
Mr. Siddall said there were
“growing risks” in Canada’s housing market, and added that federal regulators have tried to curb
risk by demanding that banks
raise their mortgage-lending
standards—but those rules apply
only to federally regulated institutions. Those include Canada’s
six largest banks, while credit
unions, which are regulated by
Canada’s provinces, aren’t subject to the new, tougher standards.
—Vipal Monga
WORLD WATCH
ATTA KENARE/AGENCE FRANCE-PRESSE/GETTY IMAGES
MIDDLE EAST EARTHQUAKE
A girl looks in a mirror salvaged from a building damaged in
Sarpol Zahab, Iran, which was hit hard by Sunday’s earthquake.
In Iran, Death Toll
Rises to at Least 530
Iran’s state-run news agency
said the country’s death toll
from the powerful earthquake
that struck the Iran-Iraq border
has risen to 530.
The news service, IRNA, also
reported Tuesday the number of
injured in the 7.3-magnitude
temblor now stood at 7,460.
The earthquake, which also
caused deaths and damage in
Iraq, struck Sunday night local
time, just as people were going
to bed. The worst damage ap-
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peared to be in the Kurdish
town of Sarpol Zahab in the
western Iranian province of Kermanshah.
Kermanshah, an almost entirely Kurdish province nestled in
the Zagros Mountains that run
along the border with Iraq, suffered all Iran’s fatalities from the
quake.
—Associated Press
CANADA
Lending Risks Rise in
Hot Housing Market
Mortgage risk is increasing
among Canadian financial insti-
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THE WALL STREET JOURNAL.
A12 | Wednesday, November 15, 2017
IN DEPTH
CLASS
Continued from Page One
They are among the two million or more Venezuelans who
have left the country since 1999,
the year Mr. Chávez gained
power, according to Tomás
Páez, a Venezuelan immigration
expert. That exodus is roughly
twice the number who fled
Cuba in the two decades after
the revolution there, and is set
to worsen. President Nicolás
Maduro, Mr. Chávez ’s successor, is stripping away the country’s last vestiges of democracy,
and the economy is in a fullblown collapse that already rivals the U.S. Great Depression.
On Monday, Venezuela was
ruled in default on a missed interest payment by S&P Global
Ratings, pushing the country
closer to a reckoning of its $150
billion debt load.
Trying to Get Out
Cumulative U.S. asylum
applications from the top five
countries for the past year*
30,000 applications
25,000
Venezuela
27,601
20,000
China
17,499
15,000
Guatemala
12,858
10,000
Mexico
12,785
5,000
El Salvador
12,447
0
2016 ’17
*For the 12 months ending Aug. 31, 2017
Source: U.S. Citizenship and Immigration
Services
THE WALL STREET JOURNAL.
Many of those who have left
are people like the Ceapucv
class of 1994—the future bankers, lawyers, economists and
doctors whose absence is likely
to hamper Venezuela’s economic
growth for decades to come.
“It’s a big loss,” said Libia Álvarez, the class’s science
teacher, who has kept in touch
with many of the students. “All
of our great professionals are
leaving, seeking a better quality
of life abroad.”
Vanessa Briceño has made a
life in Philadelphia, and Edgard
Rodriguez in Madrid. Manuela
Silva is an architect in Australia, while Julie Bolivar is a doctor in France. This past June,
Carolina Gómez, also a doctor,
left with her family for McAllen,
Texas, a move they decided to
make after the government violently put down a protest movement in 2014.
“I marched, I cried, I fought.
I did everything for my country
that I could do,” said Dr. Gómez,
who is preparing to practice
medicine in the U.S. “But we’re
very far from defeating this
wickedness.”
Those left behind are increasingly frantic to leave. Ricardo Arzola, a sales manager
at food conglomerate Empresas
Polar SA, has a good job at Venezuela’s most admired company. Salary increases and company perks such as free food
have allowed him to weather
the economic collapse.
But he sees a grim future for
his children, ages 7 and 11. He
worries about their education
after history books were rewritten to champion Mr. Chávez and
his Socialist movement while
comparing the U.S. to the Third
A path near Scarborough, Maine, which submitted a bid to Amazon.
says Meghan Stapleton, one of
two Anchorage small-business
owners who hand-delivered a
proposal to Amazon headquarters the day it was due.
Even Alaska’s entire population of around 740,000 doesn’t
make Amazon’s cut, but the
proposers hope the natural
beauty and lifestyle are selling
points. They say Anchorage has
a business-friendly climate and
boasts flight times of 9.5 hours
or less to 95% of the industrialized world. “We just felt so
strongly that Alaska should
have a seat at the table,” says
Ms. Stapleton. “That table
might not ultimately include
HQ2. But at least people are being reminded that we are here.”
Amazon, which said it wants
HQ2 for more room to grow,
won’t comment on specific proposals. Holly Sullivan, who is
leading its effort, says it appreciates the creativity of many of
the ideas: “Cities across North
America have shown their ability to think big.”
Thinking big for a group of
five towns in Massachusetts’
Lower Merrimack Valley meant
sending Amazon a large fake diamond ring with the invitation:
“let’s get merri’d.”
“We know we’re not Boston,” says Town Manager Andrew Maylor of one of the
towns, North Andover. “We
wanted people to be interested
enough to read the package because we believe that we have
everything.”
Scarborough, Maine, says it
ing on being not that far from
bigger ones. Hickory, in
Catawba County near the foothills of the Appalachian Mountains, has a four-county metro
statistical area population of
about 350,000. So local officials
instead proposed a site closer
to its big-city neighbor, Charlotte, about 30 miles away.
The area, known for furniture and fiber-optic-cable manufacturing, is pitching a blankslate campus complete with a
lake. “If you don’t buy a lottery
ticket,” says Scott Millar, president of the Catawba County
Economic Development Corp.,
“you’re definitely not going to
win.”
Rockdale in Texas composed
a combined proposal with Milam County, noting that the
population within an hour’sdrive radius brings them to
about 2.5 million people. Rockdale hopes to meet the highereducation criterion by dint of
being about an hour’s drive
from universities in Austin and
College Station.
It is playing up the ample extra room, pitching Amazon with
a proposed site of 33,000 acres,
almost two-thirds the size of
Seattle. “This is a rare opportunity, the perfect blend of big
business and the magnificence
of nature,” says the narrator in
a video produced for the site.
“The opportunity to showcase
your global reach among the
lakes and rolling hills of Central
Texas.”
Leaders of Boise, Idaho, say
they know it doesn’t meet all
Amazon’s criteria. Backers sent
two one-page letters, anyway.
One from the governor suggested Amazon “save us in its
cart for later,” says Clark
Krause, executive director of
the Boise Valley Economic Partnership. “We knew their tolerance level for looking through
our stuff would be short.”
The area doesn’t have a million people or an international
airport. So leaders took the opportunity to tout the area’s
strong talent pool and food-industry supply-chain expertise.
“It would be crazy not to take
this opportunity to get Amazon
to look at us,” he says.
Mr. Krause says the leaders
offered to send Boise’s six-ton
Big Idaho Potato—a sculpture
that rides on a semi-truck
trailer—to Seattle if that would
help woo the retailer.
Amazon asked them to resubmit the letters in PDF format. No word on the potato.
Reich.
Mr. Arzola wasn’t ready to
leave until now. He thought
there was a chance to change
his country when he joined antigovernment protests earlier
this year in a failed bid to stop
Mr. Maduro from creating a super-assembly stacked with government supporters—a kind of
tropical Politburo with unchecked power that many here
view as the death of democracy.
Crackdown
A government crackdown
left 120 people dead and the opposition in disarray. For Mr. Arzola, that settled his decision to
move to Argentina, where he
and a few friends started a
small business selling cleaning
supplies.
“Clearly there is no democracy,” he said. “Even though I’m
at a really good company, now I
have to think about the future
of my sons.”
Officially called the UCV Professors Association School, Ceapucv was created for the children of academics from the
Central University of Venezuela.
Here, the sons and daughters of
engineering professors, historians and poets studied from kindergarten through high school
and were guaranteed acceptance into the university.
As middle-class children,
they went camping, played soccer and danced to Michael Jackson’s “Thriller.” As teenagers,
they smoked and drank at raucous parties, created heavy
metal and ska bands, and
walked home at night when it
was still safe to do so. Some
shared a first kiss.
To celebrate their graduation, they took a trip to Margarita Island. Today, they remember those days as some of the
best of their lives.
Born in the late 1970s, they
were children when Venezuela’s
golden age of prosperity started
to unravel. A global oil glut led
to a sharp currency devaluation
in 1983, known as Black Friday.
Six years later, hundreds of people were killed in Caracas when
riots broke out after then-President Carlos Andrés Pérez cut
gasoline subsidies, an uprising
called the “Caracazo” that Mr.
Chávez exploited to stage a
failed coup in 1992, when most
of the classmates were in their
third year of high school.
Many students came from
liberal families concerned with
inequality and disgusted with
the political elite. But like their
parents—some of whom were
former urban guerrillas who
played Cuban folk music at
home—they
differed
on
whether to support Mr. Chávez.
After his release from prison
in 1994, Mr. Chávez presented
himself on television as a charismatic, center-left democrat.
He traded his red beret and fatigues for a suit and tie. He
pledged to respect press freedom and called Cuba a dictatorship. “I’m not the devil,” a smiling Mr. Chávez said.
Solsire Ortega’s family
wasn’t buying it, fearing Mr.
Chávez was another Latin
American strongman. Soon after his election in 1998, Ms. Ortega’s mother sent her younger
brother to Florida and arranged
for her to move to Mexico and
then Spain, ending dreams of
running an architecture firm
here.
Today, Solsire Ortega’s
daughter refuses to recognize
her Venezuelan nationality, preferring to think of herself as
HECTOR NAVARRO (TOP); FABIOLA FERRERO FOR THE WALL STREET JOURNAL (3)
Continued from Page One
Kara Clore, executive director
of the Rockdale Municipal Development District. “They’re
not going to have to cram into
some little downtown area.”
When Seattle-based Amazon
said in September it wanted to
establish a second North America headquarters—dubbed Amazon HQ2—it set forth a list of
preferences: an international
airport within 45 minutes, a
metro area of more than a million, public-transportation options, universities with software-developer graduates, a
strong cultural fit.
The company plans to bestow the winning city with a $5
billion investment that may
create 50,000 jobs. Among 238
cities, territories and regions
that Amazon says applied by
the Oct. 19 deadline are plenty
that appear to fit the bill.
Rockdale is among those
that don’t quite—but are trying
anyway. Anchorage, Alaska,
feels it, too, has something big
to offer. “We’re probably the
largest place that applied if you
look at the footprint of Alaska,”
ALAMY
TOWN
is unclear which of Amazon’s
requests are mandatory and
which are mere preferences.
The coastal resort town of
about 19,000 is proposing a
harness-race track location.
“Yes, there are some huge hurdles, and maybe some of them
are insurmountable,” says Town
Manager Thomas Hall. “Something of this magnitude, you’ll
build it and they’ll come.”
The Tulalip Tribes of Washington state applied, hoping to
play to Amazon’s desire for an
environmentally friendly footprint. Roughly 2,500 members
reside on the 22,000-acre reservation, about a 45-minute drive
north of Amazon’s Seattle
headquarters. The tribes are offering a location in what they
say is the first tribally chartered city in the U.S., something
they say could help prevent
“cubicle fatigue” by locating it
among the pines, arbutus, firs
and cedars—with autonomous
vehicles for transportation.
Also, says Michael Greene, a
spokesman for the tribes, “one
of the big things—the advantage of being a sovereign government—the turnaround for
building is much quicker.”
Some smaller metro areas
such as Hickory, N.C., are bank-
Then and now: members of Ceapucv’s class of 1994 on a graduation trip, above, and below from left to right this year, economist
Norka Ayala; Héctor Navarro, a computer science professor; and Juan David Chacón, a reggae artist targeted by criminals.
Spanish and Mexican. “She’s
heard so many terrible things
about what is happening in
Venezuela,” said Ms. Ortega,
who works in tourism in Seville.
“We never imagined this.”
The chaperone
Héctor Navarro’s family was
committed to the revolution.
His dad, also called Héctor, is
remembered by classmates as
the friendly chaperone who accompanied them to Margarita
Island. Five years later, he left
his job as an engineering professor to become Mr. Chávez’s
first education minister.
The family remained loyal to
Mr. Chávez during his 14-year
rule. Héctor Jr. joined government marches and supported
Mr. Chávez’s social welfare
projects in Caracas’s slums.
When Mr. Chávez died in 2013,
it was like losing a family member, said the younger Mr. Navarro, now a computer science
professor at the UCV.
Both men quickly became
disillusioned with Mr. Maduro,
accusing him of being an autocrat destroying his predecessor’s legacy. The super-assembly Mr. Maduro created this
summer is in the “worst style of
Mussolini and Hitler,” Héctor Sr.
said.
Like his schoolmates, the
younger Mr. Navarro thought
about emigrating. He spends
nights programming to supplement his $30 a month salary as
a professor. On a recent trip to
Peru, he returned with deodorant, shampoo and soap, basics
in short supply. At Ceapucv,
where his son now studies, the
school can’t afford food for the
cafeteria. When his son grows
up, he’d support him if he decided to leave.
The regime’s rise upended
the friendship of Magaly Henríquez and Paula Sarco Lira,
who were close in school and
went on to study chemistry together at the UCV.
“We became two strangers,”
said Ms. Sarco Lira.
Ms. Henríquez followed her
father into public service, believing in Mr. Chávez’s message
to help the poor. She worked at
PdVSA’s technology institute,
which provided her a scholarship to France. She returned
and became the president of the
National Center for Chemical
Technology, overseeing projects
to help Venezuela substitute
imports it can no longer afford,
including shampoo.
These days, Ms. Henríquez
remains committed to the embattled Mr. Maduro, calling him
a well-intentioned leader hamstrung by the crash in oil prices.
“I still believe a lot in what
we are trying to do,” said Ms.
Henríquez. “I think the easiest
solution is to go, to leave your
country and to forget that you
have a responsibility here.”
Ms. Sarco Lira didn’t have
much of a choice. She also
wanted a career in oil, but after
university those plans were
stamped out when Mr. Chávez
fired almost 20,000 striking oil
workers, including her sister,
brother-in-law and future husband. After she failed a security
clearance for a job at the oil giant on account of those family
ties, she found work in the
pharmaceutical industry.
But it became increasingly
difficult to make ends meet. Her
father stopped hosting Sunday
breakfast as food prices skyrocketed. She went a couple
months without being able to
buy rice, and was forced to reduce her young daughter’s fruit
servings. Then she got a job offer in Madrid.
“It was never our plan to
leave Venezuela,” said Ms.
Sarco Lira, who emigrated in
…while inflation has
skyrocketed…
Consumer-price index, change
from a year earlier
…and the currency is worth less
every day.
Unofficial exchange rate
An Economy in Crisis
Venezuela’s GDP has been
shrinking since President Nicolás
Maduro took office…
Change in GDP
6%
2,500%
Est.
0 bolivar per dollar
Est.
10,000
2,000
0
20,000
1,500
–6
30,000
1,000
–12
40,000
500
–18
50,000
0
2011
’13
’15
’17
Scale inverted to
show falling bolivar
60,000
2011
’13
Sources: International Monetary Fund (GDP, inflation); DolarToday (currency)
’15
’17
2011
’13
’15
’17
THE WALL STREET JOURNAL.
March. “But you can’t live with
that level of stress.”
The exodus of the class of
’94 has accelerated under Mr.
Maduro. Álvaro Yáñez, who
worked at a health services
company, found himself waking
up at 4 a.m. to join long lines
for food. He also took to social
media to search for medicine
for his diabetic father, a political-science professor who spent
his career at the UCV. Fed up,
he finally left for Ecuador.
Kidnapped
Others have suffered first
hand from crime so rampant
that only 12% of Venezuelans
told Gallup they feel safe walking alone at night.
Economist Norka Ayala was
home with her baby when her
husband was kidnapped, driven
around Caracas by armed men
as the family frantically gathered ransom. He was released,
but the couple has stopped going out at night and won’t take
their children to public parks.
She plans to move to Peru in
coming months.
Juan David Chacón began
singing about crime. A reggae
artist with long dreadlocks, he
toured Venezuela and abroad.
He had his own chilling experience: Armed men stole his vehicle and forced him to sing Bob
Marley tunes while they used
his dreads to dust their guns. In
2010, he released Rotten Town,
a song that called Caracas the
“embassy of hell, land of murderers.”
Rodrigo Belisario studied
chemistry and worked his way
up to plant manager at global
cement producer Holcim Ltd.’s
Venezuela operation before it
was nationalized by Mr. Chávez
in 2008. Mr. Belisario eventually settled in Virginia, where
he has watched his once beloved country fall apart.
“We’ve been in this mess
such a long time that to get out
of it will take two or three generations,” he said. “By that
time, we will be dead and my
children will have a life here.”
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A12A
NY
* * * *
GREATER NEW YORK
Former N.J. Mayor Sent to Prison
Paterson’s Torres gets
five years behind bars
for using city workers
on a private project
BY KATE KING
BY MARA GAY
TARIQ ZEHAWI/THE RECORD/ASSOCIATED PRESS
The former mayor of Paterson, N.J., was sentenced to
five years in state prison on
Tuesday for second-degree
conspiracy to commit official
misconduct.
Jose “Joey” Torres, 59
years old, agreed to resign as
mayor of New Jersey’s thirdlargest city when he pleaded
guilty in September. Prosecutors say he instructed city employees to perform work at a
property leased by his daughter and nephew.
Mr. Torres, a Democrat,
served as mayor of Paterson
from 2002 to 2010 and was
elected again in 2014. He is
now barred from holding public office or employment in the
future in New Jersey.
“I’m sorry and embarrassed,” Mr. Torres said at his
sentencing before Superior
Court Judge Sheila Venable.
Mr. Torres’s co-defendants,
three former supervisors from
the Paterson Department of
Public Works, pleaded guilty
to third-degree conspiracy
charges and were sentenced
on Tuesday to three years of
probation. They also resigned
and are barred from future
public employment.
Raymond Flood, attorney
for former public works super-
Former Paterson Mayor Jose ‘Joey’ Torres was handcuffed after sentencing on Tuesday. ‘I’m sorry and embarrassed,’ he told the court.
visor Joseph Mania, 51, of
Randolph, N.J., said his client
is relieved the legal proceedings are over.
“It was a sad day for all
four defendants,” said Mr.
Flood. “With respect to the
three workers from the public
works, they lost their jobs,
they’ll never work again for
government agencies in New
Jersey. And all they were do-
ing is what they were instructed to do by the mayor.”
Attorneys for the other defendants, Imad Mowaswes, 53,
of Clifton, N.J., and Timothy
Hanlon, 31, of Woodland Park,
N.J., didn’t immediately return
calls for comment.
According to prosecutors,
Mr. Torres asked city workers
to perform renovations, including painting, carpentry
and electrical work, at a warehouse where his daughter and
nephew were planning to operate a wholesale liquor-distribution business. The workers
were paid overtime by the city
of Paterson while working at
the private facility, prosecutors said. Mr. Torres’s daughter and nephew haven’t been
charged.
“Joey Torres corruptly used
his vast power as mayor of
New Jersey’s third-largest city
to serve his own selfish ends,
when he should have been
serving the residents of Paterson,” Attorney General Christopher Porrino said in a statement.
Mr. Torres and his co-defendants were ordered to pay
$10,000 in restitution, including for the overtime payments.
Jury Deadlocked
On Ex-Union Boss
Jurors in the corruption
trial of former city correctionunion leader Norman Seabrook
told a federal judge in Manhattan on Tuesday that they were
deadlocked.
Judge Andrew Carter instructed the panel, which was
in its fourth day of deliberations, to return to the jury
room and keep trying to reach
a unanimous verdict. Jurors did
so but later went home for the
day without reaching a verdict.
This is the second high-profile federal-corruption case in
two days in which jurors have
said they can’t reach a unanimous verdict. On Monday,
Judge William Walls told the
jury in a corruption case
against U.S. Sen. Bob Menendez
in Newark to continue deliberating Tuesday after it said it
was deadlocked.
Mr. Seabrook is accused of
accepting $60,000 in cash in an
$820 Salvatore Ferragamo bag
in exchange for investing $20
million in union money into a
hedge fund operated by his codefendant, Murray Huberfeld.
Phil Seelig, a lawyer representing members of the Correction Officers’ Benevolent Association who are suing Mr.
Seabrook and union leadership
over the hedge-fund investment, said the union was able
to reclaim only $1 million of
the $20 million put into Platinum Partners. The remaining
$19 million is tied up in the
fund’s bankruptcy proceedings,
Mr. Seelig said.
The two defendants, who
face up to 40 years in prison if
convicted, have pleaded not
guilty. Their lawyers have
sought to discredit the government’s main witness, former
real-estate developer Jona
Norman Seabrook, former correction-union leader, outside Manhattan federal courthouse last week.
Rechnitz.
Mr. Rechnitz testified that
he acted as a matchmaker for
the two defendants and delivered a $60,000 bribe to Mr.
Seabrook. Mr. Rechnitz’s several days on the stand were
closely watched in the city, as
he testified how he cultivated
influence in the New York Po-
lice Department and Mayor Bill
de Blasio’s office with gifts and
campaign contributions.
The mayor called Mr. Rechnitz a liar and said his testimony was false. The NYPD declined to comment. Two highranking police officers face
federal charges in a case connected to Mr. Rechnitz.
Defense lawyers for Messrs.
Seabrook and Huberfeld sought
to convince jurors that Mr.
Rechnitz, who has himself
pleaded guilty to fraud and
conspiracy, was a manipulative
social climber and not to be believed.
Deliberations will continue
on Wednesday.
Jails Budget Soars, as Inmate Population Drops
BY ZOLAN KANNO-YOUNGS
The New York City Department of Correction’s budget has
increased by 44% in the last decade to $1.36 billion despite the
inmate population declining to
its lowest point in more than
30 years, according to a report
issued Wednesday by city
Comptroller Scott Stringer.
The report showed the department spent $143,130 on
each inmate at the 12 city jail
complexes in fiscal 2017 compared with $67,565 in fiscal
2007. During that time, the average daily inmate population
declined from 13,987 to
9,500—a 34-year-low.
“An extraordinary decline in
inmates should yield cost-savings and better all-around outcomes—not dramatic spending
increases,” Mr. Stringer said.
“We’re putting far more
money into far fewer inmates.”
City officials say that money
is being well spent on skill-development programs for inmates designed to help them
readjust to society after they
are released. A Department of
Correction spokesman noted
$93 million in funding Mayor
Bill de Blasio has invested
since fiscal 2016 for such programs and job training.
The money also is used to
improve safety conditions, the
New York City’s public housing authority submitted documentation showing it was in
compliance with federal inspection requirements for lead paint
even though the agency hadn’t
conducted the required inspections in four years, according to
a report from the city’s Department of Investigation.
The DOI found that the New
York City Housing Authority
“failed to do critical leadsafety inspections and then
falsely certified that they were
meeting these legal requirements,” DOI Commissioner
Mark G. Peters said in a statement.
The DOI recommended that
a monitor be appointed to oversee the housing authority.
The allegations in the DOI
report appear to be based off
a probe by federal investigators
into health conditions in the
city’s public housing and homeless shelters.
Jean Weinberg, a spokeswoman for the housing authority, said the agency began addressing these issues more than
a year ago in connection with
that investigation, which has
been conducted by the U.S. At-
A report found that the
housing agency failed
to conduct required
lead inspections.
STEVE REMICH FOR THE WALL STREET JOURNAL
BY THOMAS MACMILLAN
Lead Paint
Reporting
By Housing
Authority
Is Faulted
spokesman said, including surveillance cameras, safety
equipment and X-ray machines.
But Mr. Stringer’s report
showed the number of assault
infractions per 1,000 inmates
increased from 470 in 2007 to
1,332 in 2017. The number
grew even though there were
more uniformed correction officials in jails than inmates for
a second consecutive year.
Natalie
Grybauskas,
a
spokeswoman for the mayor,
said the rate of violence is a
result of the city’s efforts to
divert low-level offenders out
of jail. “We’re proud of our
success in reducing the jail
population, and we’re proud of
the reforms that have made
Rikers safer for staff and inmates,” she said of the New
York City jail complex.
Richard Aborn, president of
the Citizens Crime Commission,
a public-safety policy organization, lauded the increased funding for skills-development programs, but said it should come
with a decrease in violence. “No
matter what we do or what we
spend, Rikers keeps getting
worse,” he said. “To me there is
one solution, close it fast.”
Mr. de Blasio has said his
administration’s plan is to
close the complex in at least a
decade by building new jails
throughout the city.
torney’s Office for the Southern
District of New York.
“Since the Housing Authority learned it wasn’t in full compliance with lead-based paint
regulations and reporting, it
has taken steps to address the
underlying issues,” Ms. Weinberg said in a statement. “We
owe our residents better, and
we’ll take today’s recommendations into careful consideration.”
The report found that NYCHA Chair Shola Olatoye was
told the housing agency wasn’t
in compliance in September
2016. A spokeswoman for New
York City Mayor Bill de Blasio,
who oversees the housing authority, said “operations executives” were responsible for the
lapses.
“We believe that is where
the responsibility lies, and the
housing agency chair is working
closely with federal officials to
correct this,” said Melissa
Grace, the spokeswoman.
The DOI report found that
the housing agency had failed
to conduct lead inspections required by the U.S. Department
of Housing and Urban Development, the federal agency that
oversees the housing authority,
since 2013.
Housing authority officials
said they informed HUD officials they weren’t in compliance
with federal rules during a routine oversight meeting in September 2016. But according to
the DOI report, Housing Authority officials then continued
to submit paperwork showing
they were in compliance until
July 2017. Ms. Weinberg said
the agency “took immediate
steps to develop a plan to address the issues” after the oversight meeting.
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THE WALL STREET JOURNAL.
GREATER NEW YORK
Enrollment Drops at Many Private New York Colleges
BY LESLIE BRODY
Many New York private colleges and universities that enroll mostly in-state students
saw their numbers of undergraduates drop this fall, in the
wake of Gov. Andrew Cuomo’s
scholarship push at public institutions.
The Commission on Independent Colleges and Universities in
New York found that at 30 of
the 48 private schools that serve
mostly New Yorkers, overall en-
rollment of first-time freshman
from New York dropped 8%
from last year, to 9,935. At these
schools, at least 65% of undergraduates hail from in state.
The commission, which advocates for these private
schools, released the member
survey Tuesday. Spokeswoman
Emily Donohue said it wasn’t
clear how much the enrollment
declines could be attributed to
the state’s new Excelsior Scholarship for public institutions, in
addition to other demographic
trends, but her group worried
the program’s toll on independent schools would grow.
“We don’t want this to be
us versus them,” she said.
“This is about making sure
students can come to college.”
In April, Mr. Cuomo signed a
state budget including the Excelsior Scholarship, which lets
students in families making up
to $100,000 a year enroll in
New York’s public colleges tuition-free, starting this fall.
The program, which costs
taxpayers $87 million this
school year for 23,000 recipients, kicks in after students
have exhausted other sources
of federal and state assistance,
and doesn’t cover fees.
Abbey Fashouer, a spokeswoman for the governor, said
enrollment declines at private
colleges stemmed from rising
tuition and mounting student
debt. “Instead of criticizing
the state’s efforts, we encourage these schools to work in
partnership with us to make
college more affordable for everyone,” she said in an email.
This year the state added
$3,000 tuition grants for students at private colleges that
agree to match these awards,
in addition to $400 million
yearly in tuition aid through
other programs, she said.
The commission’s survey
found that overall freshman
enrollment roughly remained
flat, at 55,113, for 80 member
schools that responded. Its
leaders’ concerns focused on
48 schools that rely mostly on
New York students and, by the
survey’s count, shed 1,535 jobs
during the past year.
The governor’s office says
enrollment at private campuses was shrinking long before the Excelsior program. Its
officials cite state Education
Department data that independent colleges and universities
had full-time undergraduate
head count of about 261,200 in
fall of 2016, down from about
272,700 five years earlier.
METRO MONEY | By Anne Kadet
I wasn’t
sure precisely
what to expect from the
2017 New
York Pest
Expo in Fort Lee, N.J. I just
knew it was going to be a
major, high-energy event, because that’s what Andy Linares, who produces the annual affair, promised when I
called to ask if I could attend.
“It’s the most significant
one-day event in pest management,” said Mr. Linares,
citing the size of the crowd,
array of exhibitors and
lineup of speakers.
Mr. Linares, who is president of Bug Off Pest Control
Center, an Upper Manhattan
training establishment and
supplier of pest-control products, promised to keep things
lively at last week’s event.
“I’ll wake people up if I see
them nodding off,” he said.
“I’ll stick my finger in their
ear. Know what I mean?”
When I arrived at the DoubleTree hotel early Friday
morning, the ballroom already
was packed with the 500
guests who each paid $150 to
$200 to attend. I squeezed into
a table filled with pest-management professionals includ-
ing brothers Frank and Reggie
Davis, who own Experienced
Exterminators in the Bronx.
They said they attend the
expo, which launched in 2003,
every year to get re-energized.
“The industry is underestimated, underrated,” said
Frank Davis. “People don’t realize a rodent can go on an
aircraft and feed off the
wires. People don’t realize
how deadly that is.”
Alas, the morning’s speakers, who lectured on topics
such as “Filth Flies in the Commercial Arena,” and “Ant Management—Choosing the Right
Formulation,” proved too technical for me. I slipped out to
visit the exhibitors. Products
included the latest batterypowered insecticide sprayer, a
bed-bug-slaying steamer and a
wireless bait station that sends
rat alerts to your phone.
Anthony Warn, an account
executive with WorkWave,
based in Holmdel, N.J., was
demonstrating PestPac software. A large screen displayed a dizzying array of fever charts and bar graphs
tracking everything from appointment cancellations and
revenue per customer to callback rate by technician. “It
looks more like something
CAITLIN OCHS FOR THE WALL STREET JOURNAL
Pest Pros Bugged
By Lack of Respect
Tommaso Garavaglia, right, with Polti North America, demonstrated a machine designed to eliminate bed bugs at an expo last week.
you’d see on Wall Street than
the office of a pest-control
company,” he observed.
John Murphy, an industry
veteran and district sales
manager for rodenticide
maker Liphatech, was educating attendees about soft bait.
The options, each with a different flavor and toxin profile, include “FirstStrike,”
“TakeDown,” and “Resolv.”
“I’ve never tasted it,” Mr.
Murphy said. “But rodents
love it. That’s the key. And
my goal is to kill.”
The lunch hour included a
networking session. Regula-
tion was a hot topic. Joel
Nolasco, president of the
New York Pest Management
Association, said the trade
group employs a lobbyist to
counter government efforts
such as a recent attempt to
ban rodenticide.
“Last year we saw a rat
carrying a pizza,” he said,
referring to the New York
City subway rodent who became a YouTube star. “Can
you imagine if you saw five
or six of those?”
Respect was another
theme. The pest-control industry isn’t appreciated, said
Michael Joyce, senior account
manager with Pest Management Professional magazine.
“Without their chemicals and
solutions and all the work
they do, we’d be surrounded
by bugs at all times,” he said.
The afternoon’s highlight
was a slideshow presented
by entomologist Louis Sorkin. He has taken many photos of bed bugs. Bed bugs
embedded in smoke alarms.
Bed bugs living in a slipper.
Bed bugs partying at the
IRS. “And here’s bed bugs
feeding on my skin!”
At day’s end, Mr. Linares
sounded a call to arms. “We
don’t get the respect we deserve,” he said to a burst of
applause. “We don’t get paid
what we deserve.”
At the cocktail reception,
Paul Siegel, who retired from
the New York Police Department and is now president
of Y2K Bug Inc. in Queens
(“From thugs to bugs!”),
echoed these sentiments. No
one haggles with the electrician or the plumber, he said.
But everyone tries to cheap
out on pest control.
anne.kadet@wsj.com
GREATER NEW YORK WATCH
Suit Filed Over Rents
At Kushner Building
Tenants of a second building
owned by the company of Jared
Kushner’s family filed a lawsuit
Tuesday concerning rent that
they say is illegally inflated.
The lawsuit in state Supreme
Court in Brooklyn filed by six residents at 18 Sidney Place in
Brooklyn alleges that Kushner
Cos. is charging much higher freemarket rent, rather than the rentstabilized rate required by law.
The Kushner Cos. said it has
done nothing wrong.
“We’ve reviewed the lawsuit
and believe it is without merit
and that we have complied with
all rent regulations applicable to
the apartments,” spokeswoman
Christine Taylor said.
The case follows a suit filed in
August by nine residents of another Kushner building in Brooklyn.
Jared Kushner stepped down
as CEO of the Kushner Cos. earlier this year before he became a
senior adviser to his father-inlaw, President Donald Trump. He
still owns both the buildings at
the center of the two lawsuits.
—Associated Press
POLICE-INVOLVED SHOOTING
TRAFFIC
$2.2 Million Awarded Hit-and-Run Crash
In Immigrant’s Death Critically Injures Man
A Manhattan federal court
jury on Tuesday awarded $2.2
million to the family of an emotionally disturbed immigrant who
was fatally shot by police officers
when he allegedly lunged at them
with a knife. Mohamed Bah, a
28-year-old Guinean immigrant,
was shot in his home in 2012.
The city strongly disagrees
with the verdict and will appeal,
a spokesman said.
—Associated Press
A man was seriously injured
in a hit-and-run crash near Union
Square in Manhattan, New York
City police say.
The 34-year-old man was in a
crosswalk when he was struck
by an SUV that was turning at
about 1 a.m. on Tuesday, authorities said.
The man was taken to Bellevue Hospital in critical condition,
officials said.
—Associated Press
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PROPERTY
DANGLING: Two window washers were rescued Tuesday after
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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.
MARK MATCHO
LIFE&ARTS
Wednesday, November 15, 2017 | A13
WORK & FAMILY | By Sue Shellenbarger
When Your Job Makes You Queasy
As more companies get embroiled in public scandals, innocent employees search for ways to keep up morale
IT OFTEN STARTS with an awkward question during a family
gathering or cocktail party: How
could you work for that company?
Is your employer making you
queasy?
More than a dozen prominent
employers have come under attack
recently over allegations of sexual
misconduct or harassment, abusive
sales tactics, lax handling of customer data or inquiries into
whether their social-network platforms are used for harm.
Employees often are vulnerable
to anxiety or even guilt when a
shadow is cast on their employer’s
image, says Annie McKee, author
of “How to Be Happy At Work.”
Some wonder, “Why am I here, if
this company is doing this thing
that I believe is wrong?”
There are ways to keep your morale up while working for an employer under fire. It might require
separating your own sense of identity from your employer’s image, or
looking for new ways to find purpose or meaning on the job.
For some, the solution is to
head for the exit. Recruiters often
see “a flurry of activity when a
company’s name hits the headlines,” as employees test their
prospects in the job market, says
John Reed, senior executive director of technology recruiting at the
staffing firm Robert Half in Menlo
Park, Calif.
Paulina Lopez wanted to work
for an employer she could feel
proud of, and thought she’d found
that at Uber Technologies Inc., Ms.
Lopez says. She liked her manager
and colleagues at the ride-hailing
company, and was treated well.
Extended family members
raised questions after seeing reports of alleged sexism and sexual
harassment in Uber’s executive
ranks. “My family was asking,
‘You’re not like that. Why do you
want to stay at a place where
something like that could happen?’ ” Ms. Lopez says.
She considers herself a feminist,
and “staying there would have
meant going against what I believe
in”—not because she’d been treated
badly, but because she believed her
colleagues had been wronged in
ways that might affect her in the
future, she says. She parted on
good terms with colleagues and
moved on to a new job.
An Uber spokeswoman declined
to comment, but referred to steps
the company has taken recently to
prevent misconduct, including two
internal investigations, numerous
changes to improve workplace
culture, expanded manager training and formation of a new employee-relations team to address
complaints.
It’s harder these days for employees to separate their personal
identity from their job. “Nothing is
hidden anymore” because details of
corporate and personal life can be
8 Steps to Take if
You’re Embarrassed
By Your Employer
n Take time to calm feelings of
stress or anxiety.
n Consider other options before
quitting.
n Spend more time on job tasks
that are meaningful to you.
n Find something to love in your
company’s mission.
n Try to fix some part of the
company’s problem that you can
control.
n Strengthen relationships with
people at work you enjoy.
n Mentor and encourage subordinates who show promise.
n Work on building skills that
will help you in the future.
shared widely on social media, says
Mary C. Gentile. She is the author
of “Giving Voice to Values,” a book
on acting on your values, and
founder of a program by the same
name based at the University of
Virginia Darden School of Business.
Attacks on a company’s ethics
cut especially deep for younger
employees, who place a higher
value on finding purpose and
meaning in their work, according
to a 2017 survey of nearly 8,000
millennial workers by Deloitte LLP.
Many employees stay on the job
anyway because they need the
paycheck or don’t see better opportunities elsewhere.
Others find satisfaction in focusing on personal career goals.
Gabby Toro-Rosa took a job at a
unit of Uber last year to gain sales
experience while waiting for an
opening at a public-relations
agency where she wanted to work.
While the negative publicity made
selling Uber’s services a little
harder, “I didn’t get worked up
about it, because I knew I was doing my job,” she says. Her manager treated her well, and she recently moved on to the job she
wanted.
Dr. McKee advises figuring out
what parts of your work you can
control and asking yourself: Is
there a way for me to live my values and have a positive impact at
the company? One manager she
coached was frustrated by his employer’s toxic, disrespectful culture. He resolved to manage his
own team differently, and set up
processes to treat employees well
and reward them for successes,
says Dr. McKee, a senior fellow at
the University of Pennsylvania.
Some employees pitch a new role
that doesn’t yet exist, says Christine
Bader, author of “The Evolution of a
Corporate Idealist,” a book about
how to advocate inside companies
for social or environmental causes.
“If you feel there’s some potential
to do good work, then take some
time to explore whether you can do
that,” says Ms. Bader, a Seattlebased former human-rights policy
manager at BP, the oil company. She
recently finished a two-year stint at
Amazon setting up programs aimed
at ensuring fair working conditions
among its private-label suppliers.
“There’s a shadowy side,” however, Ms. Bader says. “If you take
that thinking too far, to the point
that you’re rationalizing staying at
a place where you truly shouldn’t
be, then that’s no good.”
Nora Hamada hoped to provide
job seekers and employers personalized placement services when
she co-founded a recruiting firm
years ago. She wanted to invest
more time in placing candidates
than other recruiting firms did,
and to pay more attention to individuals’ needs and goals.
She was disappointed when her
partners didn’t appear to share
her values. “I wasn’t proud of the
work we were doing together. The
sense of purpose was no longer
there,” says Ms. Hamada, of New
York.
An employee quit after experiencing what Ms. Hamada considered verbal abuse. “It was a nightmare. I was actually getting sick
from all the stress. I had to leave
the job for my own sanity,” Ms.
Hamada says.
After two years, she quit and
founded her own tech-industry recruiting company, Mirus Search.
MUSEUM REVIEW
LOUVRE ABU DHABI MELDS EAST AND WEST
MOHAMED SOMJI/LOUVRE ABU DHABI
BY A. J. GOLDMANN
The museum, designed by Jean Nouvel, opened to the public on Saturday and is located on Saadiyat Island.
Abu Dhabi
‘SEE HUMANITY in a new light,”
runs the slogan of Louvre Abu
Dhabi, which opened to the public
on Saturday, a full decade after the
project was announced by the governments of France and this oilrich capital of the United Arab
Emirates. Light is the most arresting feature of Jean Nouvel’s breathtaking museum, a consortium of
galleries and administrative buildings laid out like a medina, united
under a steel-and-aluminum double
dome of intricate latticework. The
gentle play of light and shadow inside this great canopy suggests the
shade of a date tree. Viewed from
the outside, the dome glistens in
the noonday sun. At night, it is illuminated from within: a shimmering
new monument visible from downtown skyscrapers. Light also sparkles off the water that reaches the
steps of the museum, on Saadiyat
Island, creating a dazzling Venetian
effect in the Persian Gulf.
This melding of East and West
goes to the heart of Louvre Abu
Dhabi, whose aim is to narrate the
history and accomplishments of all
civilizations, presented as a continuous flow. For this still-young
country, it is a bid for cultural relevance in our globalized world. It is
also a radical rethinking of the institution of the museum and how it
should be organized.
Since the 18th century, the modern museum—and the Louvre in
Paris can be considered the mother
of all museums—has displayed
works by discrete time period, artistic school or geographical region. Louvre Abu Dhabi seeks to
unite everything that traditional
museum practice has cut asunder.
Given these goals, it might seem
remarkable that the Emiratis have
found such willing partners in the
French. Then again, money talks.
Abu Dhabi has leased the “Louvre”
trademark for 30 years and six
months for $525 million. When all
is said and done, that price will
soar to over $1 billion for continuing costs, including expertise and
training from 17 French instituPlease see LOUVRE page A15
THE WALL STREET JOURNAL.
A14 | Wednesday, November 15, 2017
LIFE & ARTS
MY RIDE | By A.J. Baime
A Bold Barracuda That’s All Muscle
expert, to find out more about it. He asked
me to tell him nothing about the car, only
some numbers on an identification plate.
Two weeks later, he called and said, “Are
you sitting down?” I said no. He said, “Maybe
you should.” Using the numbers on the identification plate, he was able to tell me all sorts
of accurate details—the car’s color, the fact
that it was a four-speed and not an automatic,
that it had an eight-track tape deck, etc. He
knew that the speedometer of this car tops
out at 120 mph and that it had no tachometer.
Most importantly, he told me that my ve-
hicle was the first Plymouth Hemi Cuda
street car ever made. The car was only built
in 1970 and 1971. I have a document signed
by Mr. Govier that says, “This is the very
first 1970 Hemi Cuda hardtop built.”
[Mr. Govier confirmed this story. A Chrysler
representative who examined this document
and the car’s title said in an email that “it certainly looks like” Mr. Dodane’s story is true. “I
believe it [but] cannot prove it,” he said.]
The Plymouth Hemi Barracuda has
evolved into an iconic muscle car, highly desired by collectors. The Hemi refers to the
426-cubic inch V-8, a 425-horsepower motor
with hemispherical combustion chambers.
Very few of these vehicles were built, which
means most people have never even seen
one, except in pictures.
Since I found out about this car’s history
over three decades ago, I have driven it
about 30 miles, and I keep it at the National
Auto & Truck Museum in Auburn, Ind.
Someday soon I am going to sell my car, but
until then it’s my prize possession.
Contact A.J. Baime at Facebook.com/ajbaime.
RUTH YAROSLASKI FOR THE WALL STREET JOURNAL
Gary Dodane, 70, owner of Karl’s Barber
Shop in Fort Wayne, Ind., on his 1970 Plymouth Hemi Barracuda, as told to A.J. Baime.
In 1983, I bought a Hemi Cuda for $500.
At the time, I did not know much about
these cars. They had huge “elephant engines,” but they got terrible gas mileage.
Gas prices were surging at the time, so people were dumping these cars. When I bought
mine for $500, I thought I was overpaying.
I noticed the serial number had a lot of zeros in it, so I contacted a man named Galen
Govier of the Chrysler Registry, a well-known
Gary Dodane, top, in Fort Wayne, Ind., with his 1970 Plymouth Hemi Barracuda. The car’s 426-cubic inch V-8 engine, rated at 425 horsepower, above center. Its well-cared-for interior, above right.
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | A15
LIFE & ARTS
HEALTH AND WELLNESS
When the Mirror Doesn’t Reflect Reality
Some patients with body dysmorphic disorder think they are hideous; doctors are trying to ‘retrain’ their brains
UNHAPPY WITH your nose or
chin? Do you think you are fat or
that your hair is thinning?
When such commonplace concerns spiral into obsessions, they
can be a sign of body dysmorphic
disorder, a complex psychiatric
malady in which sufferers focus
on real or misperceived physical
flaws. The illness can lead a person to spend hours before the
mirror agonizing over minor imperfections.
Body dysmorphic disorder affects far more people than anorexia or schizophrenia. Anywhere
from one out of 34 to one out of
60 people have some form of the
malady, which can afflict individuals who are perfectly attractive,
even beautiful. Reality TV star Kim
Kardashian, on an episode of
”Keeping Up With the Kardashians” that aired last month,
expressed concerns that she might
be getting “body dysmorphia.” A
representative for Ms. Kardashian
declined to comment.
Depending on the intensity of
their disease, sufferers can think
of themselves as deeply unattractive, even hideous, according to Jamie Feusner, a professor of psychiatry at UCLA who has conducted
studies on body dysmorphic disorder. While the disorder is serious
enough that it can lead to institutionalization or suicide, he worries
that so little is known about it,
even professional therapists may
fail to diagnose it.
“It can happen to pretty people,
it can happen to people who are
average-looking,” Dr. Feusner says.
His BDD patients can’t see their
own physical beauty, he explains.
Indeed, they struggle to see their
entire face and fixate instead on
their supposed blemishes. Actual
physical appearance “has nothing
to do with it.”
It strikes men and women and
can also affect children as young
as 7 to 10 years of age, says Fugen
Neziroglu, a psychologist who runs
GABY D’ALESSANDRO
BY LUCETTE LAGNADO
the Bio Behavioral Institute, a
treatment center in Great Neck,
N.Y., that specializes in BDD.
Julia, a 21-year-old college student, traveled to New York from
Colorado to be treated by Dr.
Neziroglu last year. Julia, who
asked to be identified by her first
name only, said she was obsessed
with the size of her forehead and
didn’t think there were adequate
treatment options nearby for BDD.
A local therapist didn’t help much.
“I had a lot of shame about my
forehead,” Julia says. The obsession, which began in high school,
led her to get bangs. Generally, she
says, “I felt that I was ugly.”
After a month and a half of
treatment with Dr. Neziroglu and
her team of psychologists, Julia re-
turned to college. These days, she
is studying psychology and hopes
to spread the word about BDD.
Traditionally, psychologists and
psychiatrists have used a combination of behavioral therapy and
medication to treat the disorder.
But Dr. Feusner has been trying
out a brain-centered approach.
While therapy and medication can
help, he says, they don’t work for
everyone and don’t allay all symptoms. A key to addressing BDD, he
says, is understanding why patients struggle to process images
of themselves realistically. Can
their brains be “retrained” to see
themselves without only focusing
on the imperfections?
“We believe that we need to
change the brain for treatment to
be effective,” says Dr. Feusner, director of the UCLA Eating Disorders and Body Dysmorphic Disorder Research Program.
With grants from the National
Institute of Mental Health in Washington, Dr. Feusner has been examining possible malfunctions in the
brain that can shed light on the
malady. An experiment in a study
he is conducting at UCLA involves
having patients with the disorder
lie in an MRI machine, wearing
goggles that display an image of
their face. The patient is told to
stare at a point at the center of
their face rather than focusing on
the part they would typically obsess about. The scanner takes images of areas of their brain to
probe for any abnormalities.
The idea is to have patients look
at their entire face “all at once, as
opposed to looking at a specific
piece of their face,” he says. Because so many BDD patients struggle to do that, “that is the essence
of what we want to achieve.”
BDD was identified as a psychological malady in the late 1800s,
when it was called dysmorphophobia and referred to an obsessive
fear that a person’s body or part
of his body is repulsive. Yet it remained in the shadows of psychiatric research until the 1990s.
Specialists in body dysmorphic
disorder called the UCLA work
“cutting-edge” and very promising. Katharine Phillips, a psychiatrist who has a private practice in
New York and is joining the faculty of Weill Cornell Medicine and
NewYork-Presbyterian in December, says work on BDD has grown
exponentially. As recently as the
1990s, Dr. Phillips recalls, “We
didn’t have any treatments—we
didn’t know what to do.” These
days, the two most common
treatments—cognitive behavioral
therapy and certain antidepressant medications—do work.
“When they are implemented, a
majority of people substantially
improve, and those treatments
are lifesaving,” she says. Still,
“there is room for new treatments,” she says, and Dr. Feusner’s studies on the brain offer
“fantastic” prospects.
Dr. Neziroglu, a professor of
psychiatry at the Zucker School of
Medicine at Hofstra/Northwell,
uses more classical methods of
cognitive behavioral therapy that
build on her therapists’ relationships with patients. The psychologists help patients try to develop
the confidence to venture out in
public by accompanying them to
restaurants, department stores or
Starbucks.
Dr. Neziroglu also uses mirrors
to help patients see themselves
realistically. She calls the technique “mirror retraining—when
you look in the mirror, try to see
the totality of you.”
Continued from page A13
tions, 13 of which will lend
artwork to Abu Dhabi over
the next decade.
The Emiratis have gotten
their money’s worth. No one
ever expected France to part
with the Mona Lisa. But the
Louvre has sent over another first-rate Leonardo,
“La Belle Ferronnière”
(1495-99), a psychologically
piercing portrait on wood
exhibited in a gallery that
juxtaposes Renaissance masterpieces with optical theories devised in the Arab
world. The Leonardo, on
view during the inaugural
year, is only one of many
outstanding works among
the 300 French loans that, at
present, make up roughly
half of the core exhibit.
Among the antiquities,
the diorite statues of “King
Ramses II” (1279-13 B.C.)
found at Tanis and “Gudea,
Prince of Lagash, Praying”
(c. 2120 B.C.) from Iraq are
especially imposing. When it
comes to the paintings, the
loans are incredible.
Jacques-Louis David’s monumental canvas of Napoleon
crossing the Alps (1803),
lent by Versailles, dominates
a gallery that also features
non-Western rulers. In the
19th-century gallery, we find
magnificent loans from the
Musée d’Orsay, including
Whistler’s most famous canvas, “Arrangement in Grey
and Black No. 1” (1871); Manet’s “The Fifer” (1866); and
another familiar face, that of
Van Gogh, in his 1887 selfportrait. Nearby is Gauguin’s
“Children Wrestling” (1888),
one of the hundreds of
works that have entered
Louvre Abu Dhabi’s own diverse collection over the
past decade, in addition to
paintings by Bellini, Mondrian and Cy Twombly.
The French curators create many sophisticated
cross-cultural juxtapositions.
But what does it mean to
represent all of human culture, art and achievement
through 600 works? Wending your way through this
narrative laid out over Mr.
Nouvel’s dozen elegantly
flowing galleries is fre-
FROM TOP: © MUSÉE D’ORSAY, RMN-GRAND PALAIS; MUSÉE DU LOUVRE/HIGH MUSEUM OF ART
LOUVRE
Vincent Van Gogh’s 1887 ‘Self-Portrait,’ above, and ‘Gudea, Prince
of Lagash, Praying’ (c. 2120 B.C.).
quently as vexing as it is enjoyable. Several of the rooms
feel like well-considered
shows in their own right—
the gallery devoted to sacred
texts, for example—or robust
private collections, but the
museum, as a whole, does
not provide a compelling argument for displaying mankind’s arts and objects in a
single continuum. The new
light the museum invites us
to see humanity in could
stand to be more vivid. On
the positive side, there is
blessedly little “we are one”
sermonizing.
In the final gallery, devoted to the art of our young
century, the museum’s insistence on a truly universal
cross-pollination of the arts
makes the most sense, since
our ever-connected reality
puts the world at the fingertips of artists and their public. The final word goes to Ai
Weiwei, with his “Fountain
of Light” (2016) commissioned for the museum. This
dazzling assemblage of 10
crystal chandeliers made in
China nods to Babel and
Vladimir Tatlin’s “Monument
to the Third International”
(1919), one of the most fa-
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mous buildings never built,
as well as to Abu Dhabi’s futuristic skyline. Slanting up
to a Nouvel skylight, it also
seems like a cheeky reflection on the utopian mission
of the museum itself.
Mr. Goldmann writes about
international arts and
culture.
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THE WALL STREET JOURNAL.
A16 | Wednesday, November 15, 2017
KYLE TERADA/REUTERS
SPORTS
Steph Curry heats up in the third quarter.
THE COUNT
SHABAN ATHUMAN/GETTY IMAGES
WHEN WARRIORS
POUR IT ON
The Golden State Warriors begin every
game as a great team with more talent
than anyone else in the league. Only when
they come out after halftime do they
bother transforming into the greatest basketball team the NBA has ever seen.
Their offense is better. Their defense is
better. Their turnover rate is lower and
their effective-field-goal percentage is
higher. In other words: This is when the
Warriors turn into the Warriors.
Golden State is outscoring its opponents
by an outrageous 28.2 points per 100 possessions in the third quarter. That’s right:
28.2 points. There hasn’t been a better single-quarter net rating since at least the
2003 season, according to Stats LLC. The
Warriors have won their last seven third
quarters by an average of 12.6 points.
They’ve won all seven games.
“For whatever reason,” Golden State
coach Steve Kerr said, “the third quarters
have been good to us lately.” And then he
listed some of those reasons. “I think we
get more focused in the third quarters,” he
said. “We’ve been turning it over quite a bit
in the first half. But third quarters, we tend
to tighten it up.”
Their offense in the third quarter scores
124 points per 100 possessions. To put that
in perspective, the Warriors matched the
NBA record for offensive rating last year,
and they only scored 115.6 points per 100
possessions.
The Warriors play the Boston Celtics on
Thursday night in what could be a Finals
preview. And there is epic potential for the
third quarter: Boston’s net rating of 24.6
points in that period would be the NBA record if only the Warriors didn’t exist.
—Ben Cohen
The Tennessee Titans have surrounded quarterback Marcus Mariota with young offensive talent and the strategy is starting to pay off.
NFL
How to Build Around a Quarterback
BY ANDREW BEATON
Nashville
FIVE YEARS AGO, the Indianapolis Colts
appeared to have a stranglehold on the AFC
South for the next decade. They had just
gone 11-5 in their first year with Andrew
Luck, a quarterback prodigy who delivered a
dizzying turnaround from the team’s 2-14
campaign the previous year.
It looked like the model rebuild for the
modern NFL: Spend a year in the cellar, land
a high draft pick and nab the right quarterback. Voila. That’s all that was needed.
Now the team with the brightest future in
the division is the Tennessee Titans. And
here’s what’s most telling: They have gotten
to this point by, in many ways, doing the exact opposite of the Colts.
While Indianapolis enjoyed a meteoric rise,
Tennessee’s growth has been maddeningly
methodical. Some fans grew frustrated, saying
the process was too slow and conservative.
But it has produced a team that looks like
it can sustain its success over the long term
possibly better than any team in the NFL.
These days, few teams look smarter than the
Titans, who are 6-3 entering Thursday
night’s game against the Steelers.
The key difference in philosophies: The
Colts invested little in young talent to surround their star quarterback, who was constantly battered and bruised and now will
miss the entire 2017 season due to a shoulder injury. On the other side, no team in the
last two decades has been as committed to
supporting its prized quarterback as the Titans have with Marcus Mariota.
“Marcus is an integral part of our offense,” said general manager Jon Robinson,
“but protecting him was first and foremost.”
A not-insignificant side benefit is that the
Titans have a host of blue-chip offensive tal-
Rolling Quarters
How this year’s Warriors and Celtics compare
with teams with the best single-quarter point
differentials per 100 possessions, since 2002-03:
TEAM
Warriors Celtics
Warriors Warriors Cavaliers
Warriors
Thunder
Mavericks
Warriors Suns
SEASON
QUARTER
PER 100
2017-18
2017-18
2016-17
2015-16
2008-09
2014-15
2012-13
2002-03
2014-15
2004-05
3Q
3Q
3Q
1Q
1Q
2Q
1Q
3Q
3Q
2Q
28.2
24.4
22.7
20.0
17.6
17.4
15.5
14.9
14.9
14.8
Note: Through Monday
Source: Stats LLC; WSJ
Weather
0s
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U.S. Forecasts
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70s
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St. Louis
Salt Lake City
San Francisco
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Sioux Falls
Wash., D.C.
Hi
55
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53
85
51
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60
60
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66
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Today
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27 s
61 pc
45 pc
60 pc
41 pc
32 pc
43 r
53 r
32 r
48 pc
56 sh
32 s
42 r
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44 pc
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51 42 pc
76 58 pc
58 36 pc
86 61 s
42 27 c
48 28 r
49 40 sh
62 44 sh
48 37 s
59 44 c
64 51 sh
65 42 s
49 40 c
46 38 pc
59 37 pc
International
City
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Berlin
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Lo W
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61 t
55 s
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21 s
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44 c
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70 s
46 c
42 c
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Hi Lo W
54 42 c
67 57 t
80 55 s
89 78 t
46 29 s
47 38 pc
51 44 pc
74 55 s
87 73 s
48 35 sh
48 37 sh
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Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
44
47
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79
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55
60
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the same thing in 2016 with Jack Conklin,
giving their at-times fragile quarterback two
personal bodyguards at the premier positions
on the line.
After that, the Titans accessorized. They
spent a second round pick in 2016, acquired
from the Rams when they traded up for
Jared Goff, on star Alabama running back
Derrick Henry, a Heisman Trophy winner
who along with DeMarco Murray now forms
one of the NFL’s best backfield tandems.
With this year’s No. 5 overall pick—again
part of the Goff trade—Tennessee took wide
receiver Corey Davis. The team then spent
its two third-round picks on another wide
receiver and a tight end.
This may sound completely normal, even
logical, but it’s nothing like how teams typically act after selecting a top quarterback.
According to the draft value chart, developed by former coach Jimmy Johnson and
which awards points to each draft slot based
on its expected value, no team since at least
1998 has supported a top quarterback pros-
Today
Lo W
33 pc
29 pc
68 pc
73 pc
55 s
76 t
51 s
45 t
46 c
35 s
77 pc
63 t
46 pc
33 pc
32 c
72 pc
40 pc
72 s
57 s
46 c
76 sh
27 s
55 pc
76 t
64 pc
71 c
49 pc
38 pc
41 r
36 c
24 pc
Tomorrow
Hi Lo W
44 35 pc
46 33 pc
80 66 sh
80 74 c
63 54 c
88 75 sh
73 50 pc
62 43 pc
55 39 sh
64 38 s
89 78 pc
71 60 sh
73 46 pc
53 35 s
39 30 sn
91 73 pc
51 40 pc
92 75 s
86 55 pc
63 46 s
88 77 sh
43 34 s
63 60 r
86 76 t
76 67 t
85 69 pc
57 45 pc
43 24 c
47 38 sh
45 34 c
39 28 pc
32 Pen
Down
1 Sierra Nevada
33 Song of David
lake
34 Municipal
17
18
19
2 Yoga posture
35 Luncheonette
3 Stadium
lure
20
21
22
surprise
36
Absolut
rival,
23
24
25
26
27 28 29
4 Legal matter
for short
30 31 32
33
5 Joe Bruin’s sch.
37 Island chain?
6
Flight
38 Patisserie
34 35 36
37 38
39
component
treat
40
41
42
43
7 “Happy
42 Lens holder
Birthday” artists, 45 Bond order
44
45
46
47
perhaps
47 Elephant org.
48
49
50
8 “Then again, I
could be wrong” 49 Be a
51
52 53
54 55 56 57
whistleblower
9 Parental threat
58
59
60 61
62
52
Ultrasound
to a misbehaving
targets
child
63 64 65
66
67
53 Pose again
10 Hit the books
68
69
70
11 Post-explanation 55 Where you
might see some
71
72
73
chorus
big bucks
12 Nation south of
56 “Your Movie
the
Strait
of
DRIVE AROUND THE BLOCK | By David Poole
Sucks” author
Hormuz: Abbr.
Across
34 Potluck staples
54 Wash and
57 Mottled mount
13 Inc. relative
chop the veggies,
1 Sign of spring
39 Blood count,
59 Squabble
19 Drill bits?
say
familiarly?
7 Cloud chamber
60 “Zounds!”
22 Storied shrine
58 Walked
bit
40 NYC’s first
61 Loser to Clinton
24 1960s campus
unsteadily
subway line
10 Aretha’s realm
in 1996
org.
62
It’s
a
cinch
in
41 Cognac-and14 Detail
63 City close to
27 Butler to
Sapporo
Cointreau
15 Zagreb’s nation,
the Tropic of
Morticia and
drink, and what
63 Honus Wagner
on Olympic
Capricorn
Gomez
each
of
this
baseball
cards,
scoreboards
64 Slot machine
28 Roll with life’s
puzzle’s border
e.g.
16 Pointing pronoun
lever
punches
answers is
66 Favorable, as an
17 Major headache 43 Apple core,
65 Appeared in the
29 Concentrate
opportunity
paper
18 Gung-ho
31 He lost to DDE
briefly
68 Nation north of
twice
67
Old
platters
20 Four quarters
44 “Va-va-va-___!”
the Strait of
Hormuz
21 Loan application 46 Couple on a bus
Previous Puzzle’s Solution
stamp
69 Sixth col., often
48 White Rabbit’s
L I V E
S T A R
R E A C H
A S I F
N I N E
A R R A Y
23 Bolts down
lament
70 Tijuana Brass
V A N I L L A I C E C R E AM
trumpeter
25 Puerto Rico hrs.
A N G L E
T A X I
A N N
50 Contents of
R E D S N A P P E R
magazines
71 Luxury hotel
26 Seasoned rice
S H R I K E
E R O I C A
B O A
N I C K E L
C MO N
name
dish
51 Heliopolis Palace
A L M S
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setting
30 Homeboy’s
72 Tailor’s concern
A S S A I L
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52 Canton of central 73 Conquistador
R O O F I N G T A R
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L I Q U I D A T I O N S A L E
1
2
14
3
4
5
6
7
15
8
9
10
11
12
13
16
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
23 18 s
25 17 sn
Atlanta
60 45 s
67 42 pc
Austin
77 63 c
80 63 sh
Baltimore
52 42 pc 57 35 pc
Boise
52 43 r
53 34 sh
Boston
45 38 pc 50 36 r
Burlington
45 36 pc 47 28 c
Charlotte
58 38 s
66 36 s
Chicago
51 31 r
40 32 pc
Cleveland
50 38 r
43 29 c
Dallas
73 60 r
75 63 sh
Denver
55 33 pc 70 44 s
Detroit
46 36 r
43 28 c
Honolulu
85 71 pc 85 71 pc
Houston
80 61 s
80 64 pc
Indianapolis
50 32 r
43 30 pc
Kansas City
58 31 pc 53 44 pc
Las Vegas
74 58 s
78 63 pc
Little Rock
64 47 sh 62 51 c
Los Angeles
77 61 pc 73 60 c
Miami
82 72 pc 81 71 sh
Milwaukee
50 31 r
39 33 pc
Minneapolis
37 23 pc 37 34 c
Nashville
61 44 sh 59 36 pc
New Orleans
75 54 pc 75 55 pc
New York City
49 44 pc 55 36 pc
Oklahoma City
62 41 c
61 52 c
90s
100+
Tampa
80s
80s
80s
k
Jacksonville
70s
The Titans said protecting
Mariota was ‘first and foremost.'
pect like the Titans have done with Mariota
through his first three seasons.
The Titans have showered Mariota with
4,640 points of offensive talent, adding up all
the offensive players they’ve drafted in the
first four rounds, after which the expected
value of picks becomes negligible. That’s
about twice the average for quarterbacks selected first or second overall since 1998.
“If you go get that franchise quarterback,
go get him some help,” said offensive coordinator Terry Robiskie. “Some guys turn around
say, ‘I’m going to go the other way. I’ve got
him, and he’s going to win the game.’”
Mariota has been among the best protected and least exposed quarterbacks in the
NFL—27 quarterbacks have been sacked
more than he has this year.
At the same time, investing top draft
picks at some of the positions that draw the
highest salaries, like quarterback and receiver, has given Robinson and coach Mike
Mularkey the flexibility to splurge elsewhere. Last offseason, the Titans spent more
than $80 million on defensive free agents.
All the while, the Tennessee offense, once
mocked for lacking explosiveness, has
steadily improved. From 2015 to 2016, the
Titans jumped from 28th in scoring to 14th.
This year, they’re 13th.
Robiskie, who runs the offense that Mularkey dubbed “exotic smashmouth” for its
run-heavy schemes that take advantage of
Mariota’s versatility, says there are distinct
advantages to having a gaggle of young
players learn together.
Basically, he says, the players have bought
in because they haven’t been previously exposed to other concepts and terminology in
the NFL.
“It’s just that old theory of life,” Robiskie
said. “It’s a new young puppy who learned
those old dog tricks early.”
—Michael Salfino contributed to this article.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
Vancouv
Vancouver
ents that aren’t only good, but they’re cheap.
Tennessee’s rebuild began with an idea
that sounds simple: Drafting a franchise
quarterback isn’t enough to build an offense.
Ever since the Titans drafted Mariota No.
2 overall in the 2015 draft, they haven’t
stopped adding offensive pieces around him.
Robinson compares it to building a house
and the first thing his quarterback needed
was a solid foundation.
Despite spending their top pick in 2014 on
an offensive tackle, Taylor Lewan, they did
U T U R N
S H A L E
MO L D
Y O K E
A D AM
T Y P E
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.
Wednesday, November 15, 2017 | A17
OPINION
Impeach Tom Steyer
It
won’t
strike many
readers as
an improbable development, but it
should: ConBUSINESS
gress is enWORLD
gaged in a
By Holman W.
once-a-genJenkins, Jr.
eration attempt to rewrite the tax code; legislators
are flailing after revenues.
And a carbon tax is not even
part of the discussion.
It’s difficult now to recollect the nonpartisan, nonhysterical
environmental
movement of the 1990s. You
don’t need to believe in climate catastrophe, advocates
said. A tax system has to tax
something. Taxing carbon is
better than taxing work and
investment.
Kevin Hassett, now Donald
Trump’s chief economist, was
a supporter. So was Greg
Mankiw, doing the same job in
the George W. Bush administration. Republican stalwarts
like James A. Baker, Henry
Paulson, George P. Shultz, Martin Feldstein and Mitt Romney
climbed aboard at various
times. Even resident skeptic
Sen. James Inhofe called it the
“honest approach” to dealing
with CO2.
The catechism wasn’t planetary doom but win-win. Understand: Energy taxes are unpopular with voters, thus with
politicians of either party, so
a carbon tax was never likely
to pass on its own. Yet a carbon tax has repeatedly been
on the table to solve revenue
problems connected with, say,
the Obama fiscal cliff debate
or the expiration of the Bush
tax cuts, etc.
What changed? Al Gore,
followed by the subject of this
column, Tom Steyer. Mr. Gore
turned climate politics toward
hysterical exaggeration and
vilification of opponents.
Wedge politics is valuable for
many things, such as generating media heat and helping
Mr. Gore to bask in the panegyrics of a growing legion of
admirers. One thing it isn’t
good for is getting things
done in our political system,
which requires bargaining and
compromise.
Issues like guns and abortion—and
now
climate
change—delight party hacks
because they become bottomless wells to draw upon. They
are meant to be milked, not
resolved.
It took no special cunning
on the part of a restless California hedge fund billionaire,
a k a Mr. Steyer, to notice that
climate change is now a sacred question among progressives, an occasion for us-vs.them tribalism, brooking no
debate.
Anybody, though, might
have noticed that the Gore approach produced no results
and ultimately discredited the
cause. Mr. Gore himself is less
heard these days, having
turned his focus to moneymaking. Mr. Steyer picked up
the cause as his own passport
to celebrity—yet failed to do
the obvious thing and rethink
a strategy that so manifestly
has failed.
Who knows what goes on
in the head of somebody like
Mr. Steyer? He pays Democratic operatives to tell him
what a great guy he is, and
they take his money and
spend it on Democratic politics as usual. Mr. Steyer has
invested at least $200 million
in recent years promoting
Democrats and attacking Republicans, with the result that
Democrats are wiped out in
large parts of the country and
Donald Trump is president.
The ultraliberal
billionaire is the
enemy of every
cause he promotes.
Mr. Steyer is the talking
head in an open-collar shirt
now seen in a $20 million petition campaign calling on
Congress to impeach a cartoon version of Mr. Trump.
The ads are running on the
national news channels—and
on California TV. Mr. Steyer
keeps hinting he’s available to
run for governor or Dianne
Feinstein’s Senate seat. In the
feverish hothouse of California
Democratic
politics,
maybe extreme anti-Trumpism really is his ticket. Or
maybe he’s a Republican mole.
Because if there’s one thing
Democrats can do to assure
Mr. Trump’s re-election, it’s to
follow Mr. Steyer in painting
Mr. Trump and his voters as
crazy, racist and beyond the
pale.
The most interesting moment in a New Yorker profile
several years ago described
Mr. Steyer’s lack of interest in
the details of climate science
or climate policy. His conspicuous failure to spark a groundswell of demand for himself as
a candidate may be one thing.
His and his movement’s astonishing incompetence on behalf
of their ostensible cause is
something else.
The alleged threat of climate change is now part of
the consciousness of every
human being on Earth. The
virtues of a carbon tax are not
in dispute. It’s a way to raise
money that doesn’t weigh on
incentives to work, save and
invest. It obviates many corrupt and inefficient handouts
to “green energy.” It survives
even the recent downward
scientific estimates of “climate sensitivity” and thus the
severity of expected future
climate change. Yet the natural constituents for such a tax
have made themselves so non
grata with their lies and slurs
(equating opponents to Holocaust deniers) that they are
not welcome at the table.
More to the point: Their presence is not required at the table simply as a matter of vote
counting.
Even Barack Obama reportedly was irritated by Mr.
Steyer’s promotion of absurdly dishonest numbers for
the alleged CO2 consequences
of the Keystone pipeline. At a
moment when a carbon tax
might solve the revenue problems of GOP tax reformers
while bringing aboard useful
Democratic votes for tax reform, the carbon tax forces
are nonplayers. Nice job,
Messrs. Gore and Steyer.
A Ford Exec Who Took the Long View
The older I
get, the more
drawn I am to
obituaries, but
not for the obvious reason.
POLITICS They often offer a reminder
& IDEAS
of the United
By William
States as it
A. Galston
used to be,
and they make
me wonder whether we have
lost something precious.
I had one of these moments
this weekend, when I read
about the death of Arjay
Miller, 101, who was president
of Ford Motor Co. and later
dean of Stanford Business
School. Under Miller’s leadership (1963-68), Ford modernized its management, introduced the highly successful
Mustang, and achieved record
earnings.
At the same time, Miller
made Ford take automobile
safety seriously while General
Motors lagged behind. The
choice cost Ford sales because
some customers balked at paying for innovative equipment
such as seat belts. Miller defended his policy as the right
thing to do and said corporate
leaders should always ask
themselves whether they were
willing to have their decisions
publicly reported. Volkswagen
executives have paid dearly for
ignoring this advice, and they
are not alone.
After leaving Ford, Miller
helped move Stanford into the
top rank of business schools
by diversifying the faculty and
student body while expanding
coverage of ethics and public
policy. He founded the Economic Development Corporation of Detroit, supported
black-owned and -operated
business, and backed a negative income tax to reduce poverty. “Making money is the
easy part,” he declared. “Making the world a better place is
the hard part.”
I wonder how many of today’s executives would be prepared to sacrifice sales and
profits to do the right thing.
Most of them have been
taught that maximizing shareholder value is their sole responsibility—and if this means
ignoring the needs of workers
and the well-being of local
communities, so be it.
Miller’s example is especially relevant today, as Republicans in the House and Senate
consider tax legislation that
would allow corporations to
repatriate foreign assets at
concessionary rates. The bills’
drafters are assuming that executives will use these funds to
invest in their businesses.
But that’s not what happened the last time this was
done, in 2004, when corporations were allowed to bring
back overseas assets if they
paid a tax of only 5%. During
the next three years, the 15
companies that repatriated the
most raised salaries for senior
executives, cut more than
20,000 jobs, decreased investment in research, and expanded dividends and stock
buybacks. All this happened
despite the letter of the law,
which specified that the funds
be used for investing in research and the workforce and
prohibited their use for compensating executives and repurchasing stock.
Law is a blunt and often ineffective instrument for inducing corporate leaders to take a
broader view. They have enormous discretionary authority.
Populism could
intensify if corporate
tax cuts don’t yield
benefits for workers.
The question is how they
choose to use it. Legality is
just the beginning. “Moral
judgment transcends legalities,” Miller once said. So does
moral responsibility.
The tax bills now under
consideration in the House
and Senate represent the
largest corporate tax cuts in
many decades. If these bills
pass, average Americans will
expect something in return—
higher wages, better working
conditions, and more opportunities for their children. If
corporations take the money
and run, public retribution
will be severe.
Earlier this week, a group
of 400 rich Americans sent a
letter to Republican members
of Congress. Their message:
don’t cut our taxes. We don’t
need the money; others do.
Besides, it is folly to add $1.5
trillion to already dire forecasts
of the growth of the national
debt over the next decade.
This is a good start. But in
addition to political responsibility, America’s financial elite
ought to exercise business responsibility. America needs a
new era of broad-minded, socially aware corporate leaders
who understand the longterm relationship between the
well-being of their companies
and the well-being of their
country.
An environment in which
profits soar while wages stagnate may make for satisfied
shareholders. But the revolt
against the arrangements that
sustain this imbalance is already under way. Today the
targets are immigration and
trade treaties. Tomorrow the
demands could include restrictions on the ability of corporations to shutter plants and fire
workers at will. The day after
tomorrow, if massive corporate tax cuts yield no benefits
for workers, we could see an
intensified revolt against
elites, not only cultural elites,
but the captains of industry
and finance as well.
Taking the long view is selfinterest rightly understood. It
means refraining from squeezing the last bit of profit out of
your business right now in order to secure a flow of profit
over time. The economy rests
on a set of political arrangements that the people can revise and—if things get bad
enough—upend.
Trump’s de Facto Small-Business Tax
By Violet Tran
T
hank you, Mr. President,
for visiting my country.
I hope you enjoyed your
stay in Vietnam as much as I
am enjoying my time in the
U.S.
I worked hard to obtain my
American education and have
since contributed to the U.S.
economy. Following my studies here, I applied through my
employer for an H-1B work
visa. I was one of the fortunate few who were selected
through the random drawing
conducted each year. I had escaped the unwelcome prospect of being ineligible to continue working when my
temporary work authorization
expires in early January 2018.
Or so I thought.
But winning the lottery is
no longer enough. In late
September, my employer’s attorneys informed us of a new
hurdle we must navigate to
convince the U.S. Department
of Homeland Security further
that my employment is necessary.
According to data from the
U.S. Citizenship and Immigraiton Service, U.S. immigration
authorities issued 85,000
challenges, known as “requests for evidence,” to H-1B
petitioners in the first eight
My H-1B visa is under
challenge, and it’s
costing my employer.
months of 2017. That’s a 45%
increase over the same period
last year, even though the total number of H-1B visa petitions rose less than 3% during
this time.
What exactly is an RFE? A
request from U.S. immigration
authorities for additional evidence that my job represents
a “specialty occupation,” a position requiring at least a
bachelor’s degree or the
equivalent. Though many of
the applicants for H-1B visas
are sponsored by technology giants such as Microsoft, Google
and Apple—which have the financial resources to weather
the risk of a failed H-1B petition—my company, a boutique
digital-media and public-relations consultancy in New York,
is not one of them.
For my employer, the RFE
is the functional equivalent of
a small-business tax—one that
will cost the company thousands of dollars in legal fees
and countless hours to marshal additional “evidence”
about the firm’s business and
my role in it. U.S. immigration
services are asking—among
other things—for copies of my
firm’s office lease agreement,
company brochures, an organizational chart, and plenty of
documents we have already
filed with the Internal Revenue Service.
In a country that prides itself on a heritage of free enterprise and encouraging risktaking small-business owners
to decide how best to run
and grow their commercial
operations, why is the well
documented success of the
H-1B visa program being
thwarted?
This is a program that our
firm’s management believes
has contributed mightily to
the success of the business. I
am only the latest in a series
of H-1B applicants sponsored
successfully by the firm. One
of these prior applicants rose
to become a partner.
One year ago, Mr. Trump,
you were elected president
by campaigning on the idea
that you were going to make
America great again. When I
look back over the history of
the U.S., I see how much immigrants have contributed to
that greatness. I hope your
administration will also allow
me to help you in your goal
of making America great
again.
Ms. Tran is an associate at
RooneyPartners.
BOOKSHELF | By David Shenk
A Twenty-First
Century Scourge
In Pursuit of Memory
By Joseph Jebelli
(Little, Brown, 301 pages, $28)
S
omething odd happened after I began working on a
book about Alzheimer’s disease almost 20 years ago.
Almost universally, as soon as I mentioned the topic
to a friend or colleague, I got the same instant response:
“What was that? I just forgot what you said.”
Probably the dumbest joke ever uttered, and yet I kept
hearing it, from person after person. They all knew it
wasn’t funny; most were embarrassed to have blurted it
out. Why was this happening?
Finally, it hit me. I wasn’t hearing a joke; I was hearing
the sound of panic. Everyone is petrified of Alzheimer’s, to
the point of not wanting to contemplate it. And rightly so.
It is existentially—and uniquely—horrifying. “I have lost
myself,” the first patient, Auguste Deter, told Dr. Alois
Alzheimer in 1901. And that’s exactly what happens. Over
many years, this disease imperceptibly, insidiously attacks
an otherwise healthy human being, eating away at normal
brain function by ripping out neurons and synapses one by
one. It eliminates our understanding of the world around
us, the recognition of the
people we love, and ultimately our basic sense of
who we are. We lose ourselves.
Why would anyone willingly think about this for any
sustained period? Why would
anyone read an entire book
about it? It had better be a
darn good book.
The British neurologist Joseph
Jebelli is up to the challenge.
With “In Pursuit of Memory,” he
has written an elegant, thorough,
compelling and touchingly personal
biography of the disease.
He begins with his family story. When Mr. Jebelli was
12, his grandfather Abbas developed Alzheimer’s. “It
started with inexplicable walks,” Mr. Jebelli recalls. Within
a decade, “like a candle burning itself out, his mind faded
and vanished.” Young Joseph’s tender experiences with his
grandfather’s decay, and his bafflement at the “sheer
indiscriminateness” of the disease, planted a seed of
curiosity that he later pursued as a neuroscientist.
Mr. Jebelli then takes us back a century to Dr.
Alzheimer in Frankfurt. He’s not the first writer to do this,
but he does it well. Through Alois Alzheimer’s experience
with Auguste Deter we are introduced to the disease’s
malicious hallmark—the “host of killer proteins” now
known as plaques and tangles. After Frau Deter died, in
1906, Alzheimer examined her brain with a microscope
and discovered a “perplexing omen.” “Peppered throughout the brain were dark particles of an unknown substance,” Mr. Jebelli writes, as well as “variegated tangles”
of another foreign material. We absorb Dr. Alzheimer’s
confusion and curiosity about the nature of these intruders. And thus we are launched into a 100-year journey of
turbulent research, evolving theories, failed therapy
attempts and occasionally fruitful insights.
Between 2000 and 2012, nearly 100% of
therapies for Alzheimer’s disease ended in
failure. Much work remains to be done.
Mr. Jebelli elegantly surveys past landmarks in our
understanding of the disease, explores its genetic linkages and navigates among the ever-evolving theories of
its cause. Historically, some researchers have emphasized
the beta-amyloid plaques sandwiched between neurons;
others the “tangled” microtubules inside neurons. Still
other researchers see Alzheimer’s as a diabetes-like
deficiency in glucose processing. Recently, inflammation
and interactions with our microbiome—the ecosystem of
microbes living on and in our bodies—have attracted
serious attention.
If this sounds like a lot of science for the lay reader, it
is. But Mr. Jebelli smooths it out into a pleasant journey.
We get to know the human beings (and the motivations)
behind the science as much as we do the biology itself,
and Mr. Jebelli ranges from the U.K. to Colombia, Iceland
and India to profile researchers and their subjects. By the
end of the book, I was wondering if there is any esoteric
sub-sub-detail in neuroscience that Mr. Jebelli couldn’t
compellingly humanize.
At its heart, “In Pursuit of Memory” is about the virtue
of human curiosity. We are awfully good at accumulating
data, shaping it into an edifice of knowledge, and sharing
it in networks with one another. We excel at finding solutions to last year’s problem and then passing the solutions
on to future learners so that they won’t have to start from
scratch. Human knowledge impressively builds on itself, as
if it were a never-ending skyscraper being constructed
into the future. “Every finding has scores of older, closely
related findings trailing behind, each having been disproved, amending the scientific narrative,” Mr. Jebelli
writes. “Science orbits the truth; it doesn’t live there.”
“In Pursuit of Memory” demonstrates how relentless
research and stumbling through flawed theories has led
to a slow but sure buildup of understanding of
Alzheimer’s. Nearly every year since 1901, researchers
have made strides.
It also starkly reminds us that we’re not nearly done
and that, in the meantime, the situation has become dire.
The baby boomers are now drifting into the most riskprone years. Alzheimer’s has become the fourth-largest
killer in the U.S.—and the only one of those four still on
the incline. (As Mr. Jebelli notes, it is No. 1 in the U.K.).
Alzheimer’s care costs more than $200 billion a year in
the U.S. alone. It is a 21st-century scourge. And yet we
have not one single drug that can slow it down by even
one day. Tested Alzheimer’s therapies between 2000 and
2012 had a 99.6% failure rate, while the failure of cancer
drugs in that same period was 81%.
“It’s time to wake up,” writes Mr. Jebelli. Hear, hear.
And that is why you should read this book. People you
love will inevitably succumb to this horrible disease. Each
of us ignores Alzheimer’s at our peril. Only our powerful
collective will can stop Alzheimer’s. No one wants to think
about it. But we must.
Mr. Shenk is the author of “The Forgetting,” a senior
adviser to the Cure Alzheimer’s Fund and the creator of
the Living With Alzheimer’s Film Project.
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.
A18 | Wednesday, November 15, 2017
OPINION
LETTERS TO THE EDITOR
The Roy Moore Mess
Military Service Really Is a Special Sacrifice
famous country song aptly summed up spite the blow to its Senate majority. Democrats
where the Republicans are with Senate and the media will make Mr. Moore the running
candidate Roy Moore in Alabama: mate of every Republican in 2018.
You’ve got to know when to
Alabama’s Republican votfold ’em.
ers are in a tough spot, and
Without a new
There is no doubt a sense in
ideally they’d at least get the
candidate, the GOP
which Mr. Moore deserves the
chance to choose between a
opportunity to challenge accuprominent write-in candidate
would be better off
sations against him for acts altheir party or opt for
losing the Senate seat. from
leged to have happened more
sending a message by voting
than 30 years ago. Though too
for the Democrat. For 25 years
many women were too easily
Democrats and feminists euignored in the past, we do not want to live in phemized and apologized for Bill Clinton, starta country or political culture in which every ac- ing with Gennifer Flowers before he was Presicusation of sexual misconduct is automatically dent. Republicans can show their standards are
accepted as true. Accusers can be liars too.
better.
But Mr. Moore isn’t in a courtroom today.
There is one other obvious loser in this debaHe’s in the political arena in which a candidate cle: Former White House aide Steve Bannon.
has to maintain a minimal level of public credi- Some have argued that the Bannon insurgency
bility to survive. And his political situation has against the Republican “establishment” is in the
moved well beyond a more familiar she said/he mode of earlier party challenges led by Ronald
said predicament.
Reagan or Newt Gingrich. This one isn’t close.
Several women have made detailed accusa- The populism of Reagan and Mr. Gingrich was
tions of sexual misconduct against Mr. Moore, always about building the conservative moveand multiple people now say he was known for ment into a majority that could govern and
trolling shopping malls for young girls while in change the country.
his 30s. Mr. Moore’s public defenses have also
The Bannonites have given no evidence or
been less than convincing, not least that he argument that they are aiming that high. They
doesn’t know his latest accuser, though he want to defeat the existing majority—a consersigned her yearbook.
vative majority by any historical standard—
Mr. Moore’s credibility has fallen below the mainly to show that they can depose Majority
level of survivability. Some of Mr. Moore’s pre- Leader Mitch McConnell.
sumed colleagues in the Senate have said they
They have no discernible governing agenda
believe the women and that the judge should beyond trade protectionism and slashing immiwithdraw. Colorado’s Cory Gardner has sug- gration, and those often appear to be convicgested that even if Mr. Moore wins, the Senate tions of convenience. It is hardly a surprise
should vote to expel him from the body. It’s a therefore that instead of recruiting talented
rare candidate who achieves that degree of po- candidates, Mr. Bannon is collecting cranks and
litical abandonment.
outliers like Roy Moore who, demonstrably, will
The sensible move would be for Mr. Moore take the GOP into the minority.
to step away from the campaign and allow AlaThe lesson Republican voters should draw
bama’s Republicans to put forth a more credible from the Moore mess is that their future lies
candidate to run as a write-in against Democrat with nominating candidates who want to
Doug Jones. Most likely, Mr. Moore won’t do achieve substantive policy goals, such as a serithat. He made his reputation as an Alabama ous reform of the tax code or confirming origistate judge by openly defying valid court or- nalist judges, rather than pouring their emoders, which twice cost him his court seat.
tions into a political fringe that will always find
In the event that Mr. Moore refuses to drop a way to lose.
out in the next day or so, President Trump
Raging against the establishment for the
might have more sway if he suggests that he sake of raging is an agenda for losers, and it will
leave the race. If Mr. Trump won’t do that, then cost conservatives the votes in Congress they
the GOP will be better off if Mr. Moore loses, de- need to achieve conservative goals.
I
Ruling Out the ABA on Judges
f Republicans are serious about getting
President Trump’s judicial nominees confirmed, they will have to rid themselves of
the fiction of a politically neutral American Bar
Association. The outfit’s recent antics provide
ample reason to remove it from Senate vetting.
The ABA’s Standing Committee on the Federal Judiciary last week informed the Judiciary
Committee that Brett Talley is “not qualified”
to serve as a federal judge. This is the fourth
“not qualified” rating the ABA has slapped on
Trump nominees, including Leonard Steven
Grasz for the Eighth Circuit Court of Appeals.
Mr. Grasz’s “not qualified” rating rests on a
misrepresentation of the former Nebraska chief
deputy attorney general’s views on judicial
precedent. Mr. Grasz once argued in a 1999 article that lower courts shouldn’t stretch Supreme
Court rulings into broader rights, but the ABA
contorts this to suggest Mr. Grasz would ignore
Roe v. Wade. Mr. Grasz explicitly wrote in the
same article that “lower federal courts are
obliged to follow clear legal precedent regardless of whether it may seem unwise or even
morally repugnant to do so.”
As for Mr. Talley, nominated for the district
court in Alabama, the ABA says he lacks the
“requisite trial experience,” having never tried
a case. This ignores that the 36-year-old has
clerked for a federal district judge and a federal
appellate judge, has worked at the whiteshoe
Gibson Dunn & Crutcher firm, and served as the
Deputy Solicitor General of Alabama.
M
Many nominees have been younger than Mr.
Talley, and the ABA called Barack Obama nominee Goodwin Liu “well-qualified” despite no experience as a trial judge. The ABA also called
Elena Kagan “well qualified” for the Supreme
Court, as indeed she was, despite her lack of
trial experience. But since the ABA found nothing amiss with Mr. Talley’s “integrity” or “temperament,” it settled on a concern with “requisite” experience.
In an August letter to Judiciary Chairman
Chuck Grassley, Senator Jeff Flake and four colleagues outlined the ABA’s long history of political liberal activism, and noted their concerns
with the Senate outsourcing advice and consent
to “unaccountable outside groups.” They also
pointed out how useless ABA ratings are, given
the number of judges who have been judged
“not qualified” but were confirmed and have
had distinguished bench careers.
ABA Standing Committee Chair Pamela Bresnahan wants Senate Judiciary to invite the ABA
to more hearings. Mr. Grassley should respond
by informing the ABA that hearings on judicial
nominees will no longer have to wait for completed ABA evaluations.
Mr. Trump followed George W. Bush and
scrapped the practice of letting the ABA prescreen nominees for the White House. Yet the
Senate continues to give the lawyers’ guild too
much sway. There are more than enough judicial watchdogs on the left and right to inform
the Senate.
Venezuela Goes Bust
ilton Friedman once joked that if you
As of Tuesday evening, the Investment
put the government in charge of the Swaps and Derivatives Association still had not
Sahara Desert in five years there declared Venezuela in default. That matters bewould be a shortage of sand.
cause this will trigger the inAnother lesson in the surance obligations inherent
He could have been talking
about Venezuela and its oil
in the credit default swaps.
price of lending to a
wealth. But it is no joke.
But S&P Global Ratings desocialist regime.
On Monday Caracas missed
clared the country in default
interest payments due on two
Monday. On Tuesday morning
government bonds and one
the Luxembourg Stock Exbond issued by the state-owned oil monopoly change issued a suspension notice for the bonds
known by its Spanish initials PdVSA. Venezuela with missed payments.
owed creditors $280 million, which it couldn’t
President Nicolás Maduro has formed a commanage even after a 30-day grace period.
mission to restructure up to $150 billion of the
Venezuela is broke, which takes some doing. debt and put Vice President Tareck El Aissami—
For much of the second half of the 20th century, who is under U.S. sanctions for drug trafficka gusher of oil exports made dollars abundant ing—in charge. Mr. El Aissami called a meeting
in Venezuela and the country imported the fin- of creditors on Monday in Caracas, which most
est of everything. There were rough patches in bondholders did not attend. Press reports said
the 1980s and 1990s, but by 2001 Venezuela was Mr. El Aissami delivered a monologue on Venethe richest country in South America.
zuela’s intention to pay and took no questions.
Then in 2005 the socialist Hugo Chávez de- He argued that Trump Administration sancclared that the central bank had “excessive re- tions make it difficult for the dictatorship to arserves.” He mandated that the executive take range refinancing.
the excess from the bank without compensaThe real problem is that restructuring astion. Today the central bank has at best $1 bil- sumes the country can grow again. That’s
lion in reserves.
nearly impossible without a change in policy
Falling oil prices are partly to blame, but the that will free the economy.
main problem is that chavismo has strangled
If Caracas doesn’t find a way to settle with
entrepreneurship. Faced with expropriation, bondholders, they will soon ask authorities to
hyperinflation, price controls and rampant cor- seize Venezuelan assets such as oil shipments
ruption, human and monetary capital has fled at sea and Citgo facilities in the U.S. Such are
Venezuela.
the wages socialism.
Regarding Michael Brough’s
“Thanks For Your Service, Too” (op-ed,
Nov. 10): I was medevaced from Vietnam in 1970, a Ranger-qualified Reconnaissance Marine with 42 long-range
recon patrols, to be greeted by sanctimonious, egoistic protesters and college kids who taunted and spat on us.
I became a teacher and coach
though disabled. As proud as I am to
help my high-school kids, there’s no
comparison with what American military personnel do every day in some of
the armpits of the world. The people
who face 24/365 danger to keep us
safe and free deserve every bit of recognition and thanks we can give them.
My service taught me a special type of
humility and pride. I found out that all
men are equal when being shot at.
It isn’t that other people don’t deserve recognition and praise for their
contributions to our society, but that a
few of us, those in the military, for
whatever reason, lay their lives on the
line with a very high probability of
loss of life and limb, while those who
don’t enlist are safe and sound.
I find Mr. Brough’s remarks demeaning, especially on a day set aside
to honor living veterans. They smack
of the continuing campaign to destroy
the culture, institutions and mores of
the U.S. that has been going full-bore
since 2008. Honor all Americans who
contribute daily to what makes America great, but reserve special thanks
and admiration for the 19- and 20year-olds who face the most evil of
forces in the most God-awful places on
earth and keep us free and safe.
CAPT. J.V. FITZSIMMONS, USMC (RET.)
Hickory, N.C.
I’m a Navy and police veteran. The
armed forces and law enforcement are
armed because they are required to go
in harm’s way, facing bad guys who
want to kill them. Caring for the homeless, while a noble service, isn’t lifethreatening. All service isn’t the same.
JOHN D. COWAN
Columbus, Ohio
I appreciate Mr. Brough’s inclusive
perspective on serving the nation. I
was a poll worker this year in my
township and was touched by the kind
remarks of fellow citizens who thanked
us for our service to democracy.
AAMIR A. REHMAN
Princeton Junction, N.J.
Mr. Brough elides the service military veterans who served during the
draft era (1940-73) experienced. The
draftee, or draft-motivated volunteer,
had to give up a minimum of two years
of his life and conform to a regimented
military lifestyle, in service to the nation, commonly far from home and
family. All this, while their contemporaries, who didn’t serve, pursued and
advanced their lives and careers. I suspect these veterans feel they have
earned the holiday of Veterans Day.
GARY L. SMITH, USN (RET.)
Englewood, Fla.
Wind, Solar Are Shedding Subsidies. Oil?
Regarding your
editorial “Big
Wind and Tax Reform” (Nov. 11):
Wind and solar
power, unlike virtually every other
energy sector,
agreed to a
phase-out schedule for their own
tax incentives in a
bipartisan 2015
compromise.
Rather than reward such fiscal leadership, the House
proposal targets the sector with punitive provisions that retroactively
change the criteria wind and solar
projects must meet to qualify for tax
credits last year. These provisions, the
only retroactive measures in the 429page bill, are so destructive that their
introduction sent an immediate shiver
through the marketplace, placing tens
of billions of dollars in investment and
thousands of wind-energy jobs at risk.
Retroactive changes to rules that investors relied on in financial decisions
are inherently unfair and have no
place in tax reform.
You also ignore the fundamental
hypocrisy of the energy provisions in
the House bill, which target the dwindling temporary incentives for renewable energy instead of re-examining
the array of older, permanent incentives for fossil fuels, some of which
have been on the books for more than
a century. Also spared, and in fact enriched, are incentives for nuclear energy that go back more than 50 years.
With nearly $100 billion in investment over the past two years, and a
strong record of job creation, especially in rural areas where investment
and jobs may otherwise be hard to
come by, renewable energy is one of
the nation’s most important economic
drivers. It deserves a fair shake from
House legislators and editorial writers.
GREGORY WETSTONE
President and CEO
American Council
on Renewable Energy
Washington
GETTY IMAGES/ISTOCKPHOTO
A
REVIEW & OUTLOOK
Iowa Sen. Chuck Grassley and his
Republican colleagues in other wind-
SALT Helps States That
Put In More Than They Get
Regarding “Tax Reform Momentum” (Nov. 10), I can’t help but notice
the umpteenth time the editorial
board has bemoaned the “subsidies”
given to high-tax states via the state
and local tax (SALT) deduction. As a
longtime fiscal conservative, smallgovernment Journal reader living in
New York, I look forward to the future
analysis of state-by-state subsidies
and the tens of billions of dollars
flowing out of high-tax states and subsidizing what often seem like dependent red states. It’s quite the paradox.
The SALT deduction isn’t great as a
matter of policy, but it doesn’t exist in
a void. Keeping tax dollars a little
closer to their constituents actually
sounds conservative to me.
M. FANELLI
Brooklyn, N.Y.
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
energy states are
simply doing what
Republicans have
consistently done
for their oil and
gas states—cave
on free-market
principles to support energy subsidies in their home
states.
The big difference this time is
wind energy’s tax
loophole will be
gone after 40 years since Republicans
reformed its taxes in 2015 with a fiveyear phase-out of the industry’s primary tax preference.
So what’s keeping the party in control now from figuring out how to reform taxes on oil and gas by ending
tax provisions costing more than
wind’s carve-out at $4.2 billion a
year, according to the Congressional
Budget Office?
MARK RICHARDSON
Hutchinson, Kan.
Wind energy comes at the expense
of taxpayers and birds, including protected birds. Audubon groups need to
be more active in countering the wind
lobby. An alliance between environmentalists and free-marketers could
end the subsidized bird holocaust.
IAN MCCLINTIC
Houston
Think of the Harm Taxing
Tuition Wavers Will Do
In arguing to tax tuition waivers,
you claim that they “let colleges employ teaching assistants as indentured
servants” and that colleges should pay
teaching assistants “a better wage”
(“The College Tax-Reform Tantrum,”
Review & Outlook, Nov. 9). The numbers simply don’t support this statement and, indeed, argue for retaining
current tax benefits. At my institution,
like other research-intensive universities, the total compensation for graduate assistants is $71,000, including a
tuition waiver of roughly $40,000 and
a stipend of $31,000. Taxing these tuition waivers will consume a large
fraction of much-needed stipend support. As these fellowships often support students in fields that are engines of economic growth—computer
science, biotechnology, mathematics—
taxing tuition waivers will serve only
to diminish the lives of individuals
and the growth society at large.
PROF. NEIL SHUBIN
The University of Chicago
Chicago
Pepper ...
And Salt
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“But most of all I’d like
to thank the zeitgeist.”
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Wednesday, November 15, 2017 | A19
OPINION
The Democrats’ Kansas Distraction
By Ron Estes
They’re trying to make my
state’s 2012 tax cuts into a
cautionary tale, but there’s
no comparison.
the Legislature to pass a 2011 budget
that included $527.6 million in stimulus funds. Democrats knew this
money was temporary but behaved as
if it were permanent. The effect was
to exaggerate the “lost revenue” from
the tax cut.
Second, the shortfall was made
worse because state lawmakers re-
ALAMY STOCK PHOTO
W
hen House Republicans unveiled their
plan for tax reform
this month, Democrats
offered a curious response. Rather than give their own
proposal, they held a mock hearing—
a show trial, really—on Kansas’ 2012
tax cuts. Democrats see my state as
proof that supply-side economics
doesn’t work and that the GOP’s national tax reform will lead to budget
cuts and enormous deficits.
But the comparison is less a cautionary tale than a tall tale. I was
Kansas’ state treasurer from 2011-17,
and no one watched the dollars flowing in and out more closely than I
did. Consider a few facts:
First, the 2012 tax cuts came during the same year that federal stimulus funds ended. That alone resulted
in a 12.5% drop in revenue. In the
spring of 2010, then-Gov. Mark Parkinson, a Democrat, had worked with
jected the “pay-fors” proposed by Republican Gov. Sam Brownback. The
governor’s original tax plan would
have closed many loopholes. But the
Legislature wanted to keep the tax
credits and deductions and left them
in the final bill. Such carve-outs
should be viewed as spending
through the tax code, as Martin Feldstein, a top adviser to President Reagan, has argued on these pages.
Third, the Legislature then continued to increase spending by 3% a
year. Between the 2010 and 2018
budget years, during this era of supposedly devastating cuts caused by
right-wing tax policy, lawmakers
raised expenditures from $5.3 billion
to $6.6 billion. Democrats who deride
the Kansas “experiment” conveniently ignore how spending contributed to the fiscal problem.
Fourth, after 2012 Kansas faced
economic headwinds that decreased
revenue. As commodity prices sank,
the average net farm income in Kansas collapsed, from $159,352 in 2012
to $4,568 in 2015. Aviation companies—Kansas is home to Spirit AeroSystems, Cessna and Bombardier
Learjet—struggled in the economic
downturn caused by the Great Recession. Meanwhile, plunging oil and gas
prices hurt drillers in central and
western Kansas. For the state treasury, this was a perfect storm.
The truth is that Kansas’ tax cuts
simply aren’t comparable with the
GOP’s pro-growth national plan because they aren’t structured the same
way. The Kansas bill did nothing for
large corporations. Instead it focused
on reducing taxes for small businesses
and LLCs (i.e., pass-throughs). As a result, Kansas created record numbers
of small businesses. But critics say the
lower rate increased tax avoidance by
providing an incentive to push money
into pass-throughs.
The House GOP plan doesn’t have
this problem because it would lower
tax rates proportionally on both small
businesses (to 25%) and corporations
(to 20%). This would also bring America’s corporate tax in line with the
rest of the world. Today’s high corporate rate of 35% is undoubtedly holding back growth. Cutting the rate to
boost the economy is a core feature of
the GOP’s national proposal, but that
wasn’t a part of the Kansas plan.
So why do Democrats keep bringing up Kansas? Because the truth
gets in the way of their efforts to kill
tax reform. The last time Washington
enacted a serious plan like the House
proposal was under President Reagan, and it ushered in one of the largest booms in the nation’s history.
Economic growth averaged 3.5% from
1981-88. Republicans want to replicate that success for all Americans.
The House estimates that under its
plan the typical family of four earning $59,000 would save about $1,182
a year on their tax bill.
In obsessing about Kansas, Democrats ignore the obvious economic
lessons from the other 49 states. Federal data clearly show that Americans
are leaving high-tax states like Connecticut and moving to low-tax ones
like Texas. These are the comparisons
that are truly relevant.
In a September CNN poll, 68% of
Americans said the tax code needs either a “complete overhaul” or “major
changes.” Republicans would be wise
to take heed and press ahead. Democrats, with their Kansas show trial,
have demonstrated that they are
more interested in phony comparisons than in offering real solutions.
Mr. Estes, a Republican, is a U.S.
representative from Kansas.
How Big Pharma Sandbags Generic Competition
By Michael A. Carrier
D
rug companies are always figuring out creative ways to sustain high prices on brandname medications. In the latest twist,
Allergan this fall transferred the patents covering its eyedrop Restasis to
the sovereign St. Regis Mohawk
Tribe, admitting outright that its goal
was to prevent the patents from being overturned.
Whatever the industry’s excuses,
shenanigans like these cannot be justified as aiding innovation. Instead
they are anticompetitive abuses that
lead to higher prices for millions of
patients in need of vital drugs. What
can Congress do? Four things:
• Help generic manufacturers get
the drug samples they need. Before a
generic reaches the market, it must be
shown to be equivalent to the brandname drug. But proving this requires
samples that pharmaceutical companies are often unwilling to provide.
This ruse was employed by the infamous “Pharma Bro,” Martin Shkreli.
His company, Turing Pharmaceuticals,
set up a restricted distribution system
for its drug Daraprim that required
orders to be approved directly by the
company. If someone “calls and asks
for 50 bottles of Daraprim, they would
have to come to me for approval,” a
company official told the blog Pharmalot in 2015. If the request was from
a generic maker, “most likely I would
block that purchase.”
A 2014 report sponsored by the
Generic Pharmaceutical Association
estimated that this kind of gaming
delayed the approval of 40 generics,
at an annual cost to the American
health-care system of $5.4 billion.
Congress can address the problem
by passing the bipartisan Creates
Act. This narrowly targeted bill
would require brand-name drug companies to provide generic manufacturers with enough samples to meet
the testing requirements. If the
brand-name firm refused, the generic
company could sue.
From denying samples to
pushing ‘citizen petitions,’
drug companies are clever.
But Congress can help.
• Make clear that drug-distribution
programs cannot be patented. When
a risky drug needs to be administered
in a closely monitored setting, the
FDA often requires the manufacturer
to create a program called Risk Evaluation and Mitigation Strategies, or
REMS. Some brand-name companies
are patenting their REMS. This puts
generic manufacturers in a tough
spot, since FDA regulations require
the generic label to mirror the brand
label, which includes the REMS.
Case law and the relevant statute
suggest that REMS should not be patentable. But Congress could help generics stuck between a rock (“Don’t
alter the label!”) and a hard place
(“Don’t infringe a patent!”). Simple
statutory adjustments could make
clear that REMS are not patentable.
• Stop brand names from paying
off first-filing generics. As a way of
encouraging generic manufacturers
to challenge invalid brand-name patents, the Hatch-Waxman Act of 1984
gives the first generics to file such a
challenge a valuable 180-day period
of market exclusivity. Other generics
cannot enter the market until the
first-filers do.
Brands have twisted this provision
beyond recognition by paying off the
first-filers. To protect its sleep-disorder drug Provigil, Cephalon paid four
generic manufacturers (all of which
filed on the same day) $300 million
to delay their entry into the market
by six years. A 2010 report by the
Federal Trade Commission estimated
that “pay-for-delay agreements” cost
consumers $3.5 billion a year.
Such arrangements have attracted
serious scrutiny. The company that
later bought Cephalon agreed to pay
a $1.2 billion settlement in 2015 to
resolve a challenge to the deal. The
Supreme Court warned four years
ago that such agreements could violate antitrust law. Yet that hasn’t
stopped them, and drug companies
have only gotten cleverer.
Lawmakers could enact a simple
fix, like the Improving Access to Affordable Prescription Drugs Act. The
bill would open that 180-day period
to parties other than the first-filer,
such as whatever company wins litigation showing the patent invalid.
• Reform the FDA’s “citizen petition” process. Petitions are supposed
to let Americans bring concerns
about drug safety and effectiveness
to regulators’ attention. But the process is being abused.
From 2011-15, the FDA received
roughly 125 “citizen petitions” asking
it to take a specific action regarding
a pending generic application. Almost
all of these were filed by brand-name
drug companies. According to my research, the FDA denied 92% of them,
and 98% of those filed immediately
before the expiration of a patent or
exclusivity period. In a 2015 report,
the FDA’s acting commissioner wrote
that the agency was concerned the
law “is not discouraging the submission of petitions that are intended
primarily to delay the approval of
competing drug products.”
Congress could increase transparency by requiring the FDA to include
more information in its annual report—such as a full list of these petitions and any delay in generic approvals that they caused. Lawmakers
could also loosen requirements so as
to give the FDA broader authority to
dispose of petitions summarily.
High drug prices directly harm
Americans’ health. There is no excuse
when they are the result of blatantly
anticompetitive behavior. With these
four steps, Congress could bring
competition back to the market, with
tangible benefits for millions.
Mr. Carrier is a professor at Rutgers Law School.
If Roy Moore Wins, the Senate Is Stuck With Him
By Brian C. Kalt
R
ep. Morris Udall, on losing the
1976 presidential nomination to
Jimmy Carter, quipped: “The
voters have spoken—the bastards.”
That applies to Alabama’s Dec. 12 U.S.
Senate election. The voters will have
their say, and if they elect Roy Moore
despite his alleged sexual misconduct,
the Constitution requires the Senate
to seat him, and expelling him would
violate congressional precedent.
Senate Republicans have reportedly
discussed refusing to seat Mr. Moore,
but legally they cannot. In 1967 the
House excluded Rep.-elect Adam
Clayton Powell Jr. of New York for
corruption. The U.S. Supreme Court,
though traditionally reluctant to intervene in Congress’s internal housekeeping, declared that the House had
crossed a line. The Constitution
makes the House and Senate the
judges of the elections and qualifications of their members but does not
give them the power to create new
qualifications.
Nobody doubts that Mr. Moore
meets the constitutional qualifications
for the Senate seat: He is at least 30, a
resident of Alabama, and a U.S. citizen
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for at least nine years. The Constitution does not disqualify even convicted
criminals from Congress. Instead, it
leaves it to the voters to weigh candidates’ characters and abilities. If Alabamans conclude that Mr. Moore is a
It would be legally bound
to seat him, and there’s no
precedent for expulsion.
monster unworthy of the office, they
will not elect him. But if they conclude
that he is innocent or if they decide
that, regardless of his prior conduct,
he is better than the alternative, the
Senate must seat him.
While exclusion is not an option,
expulsion is. The Constitution empowers the Senate to throw out any
member it deems sufficiently contemptible, with no limits on the basis
for such an action. But that requires
a two-thirds majority—a high bar.
Presuming Mr. Moore would not vote
in his own case, that means at least
18 of the other 51 Republicans would
need to vote against him.
Colorado Sen. Cory Gardner,
chairman of the National Republican
Senatorial Committee, has already
declared that if Mr. Moore is elected
he should be expelled. Perhaps a
Moore victory would cause a cascade of such sentiment among Republican senators. But that would
overturn firmly established congressional precedent that expulsion is
reserved for misconduct in office,
not for actions the voters knew
about before the election.
The Supreme Court recognized
this limitation in Powell’s case, quoting a House speaker who declared it
“so frequently decided” that it was
“no longer a matter of dispute.” The
Senate debated the issue at length in
1893, when it dropped an expulsion
case on the assumption that it had no
jurisdiction over old misconduct.
The Senate can disregard such precedents when it sees fit, and surely
there is no shortage of senators willing
to speak out against unlawful sexual
conduct with minors. But senators are
surely also aware that many of their
numbers have been accused of all manner of wrongdoing—whether sexual, financial or both. Members from both
parties will be wary of setting a precedent under which their entire pasts are
subject to scrutiny and 66 votes are
enough to end their careers.
Senate Republicans can send a
strong message to Alabama voters
that Mr. Moore is unwelcome in the
Capitol. Perhaps this will lead Alabamans to send his opponent to Washington instead. But flouting the establishment is Roy Moore’s brand, and Mr.
Moore’s base may call the Senate’s
bluff. If they do, the Senate will have
to live with the voters’ choice, or else
open up a can of worms it has seen fit
to keep closed for over 220 years.
Mr. Kalt is a law professor at
Michigan State University and author
of “Constitutional Cliffhangers: A Legal Guide for Presidents and Their
Enemies” (2012).
Yes, Nafta
Is Good for
My Children
By Patrick J. Ottensmeyer
T
his week American, Canadian
and Mexican negotiators will
meet in Mexico City for the
fifth round of talks to modernize
the North American Free Trade
Agreement. During the previous
round of negotiations in Washington, I had the opportunity to meet
with U.S. Trade Representative Robert Lighthizer, who leads the U.S.
delegation. I wanted to explain how
important Nafta is to my company
and the communities we serve.
Near the end of our meeting, Mr.
Lighthizer asked me a more personal question: “How is Nafta good
for your children and grandchildren?” Afterward, I spent a good
deal of time thinking about this. I
also took the time to consider how
this trade deal will affect America’s
place in the world for decades to
come. I think I can now give a definitive answer to Mr. Lighthizer’s
question.
In answer to Robert
Lighthizer’s thoughtprovoking question, it’s
good for the country too.
First, what does Nafta mean to
contemporary society? U.S. exports
to Canada and Mexico support 14
million American jobs, including
tens of thousands in every state, according to the U.S. Chamber of
Commerce. Each day, more than
$3.3 billion is traded among the
U.S., Canada and Mexico. That’s $1.2
trillion a year. In fact, about half of
all Canadian and Mexican imports
are made in the U.S.
Nafta is especially beneficial for
America’s farmers and ranchers.
Agricultural exports to Canada and
Mexico—vital to the health and
strength of rural America’s economy—have quadrupled to $38 billion in 2016 from $8.9 billion in
1993, according to the North American Economic Alliance. Canada and
Mexico are also the top two markets in the world for U.S.-made
manufactured goods, with purchases of nearly $500 billion last
year, a sum that tops the next 10
largest markets combined.
America’s North American neighbors are also booming markets for
U.S. services exports. In 2016 the
U.S. recorded a trade surplus of $11.9
billion with its Nafta partners when
manufactured goods and services are
combined, data from the Chamber of
Commerce show. Among the biggest
beneficiaries of this commerce are
America’s small and medium-size
businesses. Some 125,000 of them
sell their goods and services to Mexico and Canada.
That’s what the world looks like
with Nafta. What if it went away?
Exports to Mexico and Canada
could face tariffs and taxes, meaning that over time American exports would be replaced by products from other markets. Mexican
purchases of corn and other agricultural commodities from the U.S.
would almost certainly shift to
places like Argentina, Brazil and the
European Union. Given its concerns
over Nafta, Mexico is actively pursuing new free-trade agreements to
facilitate this. A recent study by Impact Econ estimates that more than
a million U.S. jobs could be lost if
Nafta ends.
Congress is trying to overhaul
the tax code to boost the economy
and help wages grow. But if the
White House pulls out of Nafta, it
could lead to the reimposition of
higher tariffs on North Americanproduced goods. This would effectively be a big tax increase on all
U.S. production.
I recently attended a business
summit featuring high-profile Mexican business and government leaders, including President Enrique
Peña Nieto. Chinese and Russian
government officials and business
leaders participated too, hoping to
strengthen trade relations with
Mexico—and put at risk the $600
billion of goods that Mexico purchases from the U.S. It was a chilling reminder that Nafta’s collapse
would push Mexico, and perhaps
Canada, to look elsewhere to stabilize their economies.
As for Mr. Lighthizer’s thoughtprovoking question: I’m confident
my three daughters and future
grandchildren are better off because of Nafta. And a modernized
agreement could help more. I believe the ambassador and President
Trump can achieve that objective
for all of us, and I want to help
them do so.
Mr. Ottensmeyer is CEO of Kansas City Southern, a railroad company with operations in the U.S.,
Mexico and Panama.
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TECHNOLOGY: PARIS IS COOL TO AIRBNB’S EMBRACE B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2578.87 g 0.23%
S&P FIN g 0.06%
S&P IT g 0.16%
Wednesday, November 15, 2017 | B1
THE WALL STREET JOURNAL.
* * * *
DJ TRANS g 0.31%
WSJ $ IDX g 0.40%
LIBOR 3M 1.419
NIKKEI (Midday) 22246.07 g 0.60%
Junk-Bond Selloff Hits Telecoms
Rout is confined to
sector for now, but it
could spread if fund
outflows get worse
Bad Connection
Prices of high-yield bonds have softened in recent days, with declines
in the telecommunications sector reflecting a reduced outlook for
some key firms. While selling so far has mostly been contained,
some investors worry that high-yield bonds remain vulnerable
An autumn pullback in the after a sharp rally over the past year.
30%
Performance, total return Global stocks†
20
Global high-yield bonds
junk-bond market is centered
in the telecommunications sector, raising concerns that
weakness in the group could
10
By Jon Sindreu,
Christopher Whittall
and Sam Goldfarb
Nintendo
To Bring
Mario to
Big Screen
BY BEN FRITZ
AND TAKASHI MOCHIZUKI
Mario and Luigi are heading
to the big screen in one of the
highest-profile licensing deals
by a Hollywood studio in years.
Illumination Entertainment,
which makes animated films for
Comcast Corp.’s Universal Pictures, is close to an agreement
with Nintendo Co. to make an
animated “Super Mario Bros.”
movie based on the 32-year-old
videogame series about a pair
of sibling plumbers who fight
evil turtles and mushrooms in a
fantasy kingdom, said people
with knowledge of the discussions.
Nintendo’s marquee characters have long been tempting to
Hollywood, particularly now
that the business is driven by
globally popular franchise films
featuring well known brands
like Marvel superheroes, “Fast
& Furious” and Harry Potter.
The dozens of “Super Mario
Bros.” games and their spin offs
are widely believed to be the
best-selling videogame franchise ever, having sold more
than 330 million units total, according to Nintendo.
Other Hollywood studios
have sought the “Super Mario
Bros.” rights in the past, according to people familiar with
the discussions.
Illumination, which made
“Despicable Me,” “Minions” and
“The Secret Life of Pets,” has
been talking to Nintendo for
more than a year about a
movie, according to the people
who know about the recent
talks.
The potential deal follows an
agreement Universal’s themeparks unit made with Nintendo
two years ago to build attractions based on Mario and other
characters.
A Nintendo spokesman declined to comment, as did an Illumination spokeswoman.
Universal finances and releases films produced by Illumination, which it co-owns with
the animation company’s chief
executive, Chris Meledandri.
Nintendo hasn’t made deals
Please see MARIO page B2
–10
2015
’16
’17
Credit spreads* on high-yield bonds have
risen this month, with increases centered
in lower-rated debt
Frontier Communications’ 11% bonds
due 2025, daily prices, par value $100
Weekly net flows into high-yield funds,
four-week moving average
5 percentage points
$88
$2 billion
4
Dollar
B-rated
3
Euro
B-rated
Dollar
BB-rated
Euro
BB-rated
2
1
86
1
84
82
0
80
78
–1
76
74
0
Aug.
Sept.
Oct.
Nov.
–2
Oct.
Nov.
2017
*Yield premium over Libor, based on asset swap spreads †MSCI AC World Index
Sources: FactSet (stocks); Bank of America Merrill Lynch (credit risk, bonds); MarketAxess (bonds due 2025); Thomson Reuters Lipper (flows)
self-reinforcing,” said Anthony
Robertson, head of Strategic
Value Credit at Cheyne Capital.
“It can spiral out of control
quickly.”
As prices of telecom bonds
fell, their average yield in the
Bloomberg Barclays U.S. highyield index rose to 6.63% Mon-
day from 5.45% a month earlier, according to Bloomberg
Barclays. The average yield of
the entire index climbed to
5.78% from 5.46%.
Telecom companies have
faced escalating challenges for
some time. Growth in the U.S.
wireless market has slowed
THE WALL STREET JOURNAL.
index has gained 15%. That
makes the telecom sector the
worst-performing of the S&P
500’s 11 groups.
Telecom companies with
junk-rated bonds are in an especially tough position. They
include the third- and fourthPlease see YIELD page B2
and pricing pressure has
chipped away at the profits of
even the largest and most successful companies, such as Verizon Communications Inc.
and AT&T Inc.
Shares of telecom companies in the S&P 500 have fallen
20% in 2017, while the broader
GE’s Cap Falls Off in Stock’s Tumble
BY THOMAS GRYTA
A two-day tumble has
erased 13% from General Electric Co.’s share price, causing
the conglomerate to lose its
crown as the biggest U.S. industrial company as Wall
Street digests a turnaround
plan announced Monday.
GE’s new chief executive,
John Flannery, said Monday
the company would cut its dividend in half and shed multiple divisions, and that it may
take years for a recovery. The
lack of a dramatic move, such
as a breakup or dropping a
major division, and the long
timeline aren’t sitting well
with investors who waited
four months for the plan.
“It will take a long time to
work through GE’s operations
toward eventually turning its
fortunes
around,”
said
Deutsche Bank analyst John
Inch. The dividend cut was
steeper than Wall Street expected, he said, which could exacerbate the selloff “as retail investors who previously counted
on the GE dividend look else-
INSIDE
BIG TOY TIE-UP
WOULD BE
GAME-CHANGER
RETAIL, B7
INVESTORS PICK
THROUGH MALL
OPERATORS
PROPERTY REPORT, B8
Market Swap
Boeing and GE market
capitalization
$300 billion
GE
250
$155.2B
200
LUKE SHARRETT/BLOOMBERG NEWS
spread if withdrawals from
mutual and exchange-traded
funds pick up momentum.
The bond selloff has hit
firms ranging from European
giant Altice NV to U.S. operator Frontier Communications
Corp., dragging down broader
indexes of high-yield bonds—
those deemed speculative by
credit-rating firms.
The selling so far has been
largely contained, easing fears
that the junk-bond retreat
could be the first crack in a furious 2017 market rally that
has taken major stock indexes
around the globe to records,
some investors said.
Yet telecom makes up a
meaningful chunk of high-yield
indexes and exchange-traded
funds and some analysts are
concerned that retail investors,
whose exposure to junk bonds
tends to come through passive
funds, may get spooked by the
selloff. In a worst-case scenario, they could then dump
other riskier assets like stocks,
these analysts say.
“This stuff can become very
0
Workers in South Carolina. The conglomerate plans a turnaround.
where.” More than 40% of GE’s
common shares are owned by
retail investors, he said.
GE shares fell 5.9% to $17.90
Tuesday—after falling 7.2%
Monday—and are down 43%
for the year.
The decline has left GE with
a market value of $155.23 billion, while Boeing Co. shares
have enjoyed a 68% gain this
year, leaving GE behind as
Boeing’s market cap reached
$155.9 billion. A year ago, GE
was worth about $270 billion
and Boeing $92.6 billion.
Several investors said short
sellers were active in GE stock,
a strategy that is now cheaper
with the lower dividend.
Short sellers borrow a stock
and then sell it, betting its
150
Boeing
100
$155.9B
50
0
2017
Source: WSJ Market Data Group
THE WALL STREET JOURNAL.
price will drop so it can be repurchased at a lower price and
returned to the lender. If a
stock pays a dividend, the short
seller doesn’t get that dividend
but must compensate the
lender for it. A lower dividend
generally reduces that cost.
One New York hedge-fund
manager said “everyone on
Please see GE page B2
See more at WSJMarkets.com
Apple
Supplier’s
Net Falls
On iPhone
Problems
BY YOKO KUBOTA
BEIJING—Foxconn Technology Group, the world’s largest contract manufacturer of
electronics, posted a 39% drop
in quarterly net profit amid
production challenges dogging
the flagship product of its biggest customer, Apple Inc.
Apple’s iPhone X, which
Foxconn assembles in China,
went on sale Nov. 3, after it
was plagued by a series of production problems among Apple’s suppliers. The troubles
were centered on new technologies packed into the device,
the most expensive iPhone
ever, with a starting price of
$999 and features including an
edge-to-edge display and facial
recognition.
Taiwan-based
Foxconn,
known formally as Hon Hai
Precision Industry Co., posted
21 billion New Taiwan dollars
(about $695.5 million) in net
profit for the three months to
September, its statement
showed Tuesday. That was
lower than the NT$35.6 billion
average estimate of analysts
polled by the S&P Global Market Intelligence. The 39% decline in profit from a year earlier was Foxconn’s largest drop
since 2008, during the global
recession, according to data
from S&P.
Quarterly revenue in the latest period was NT$1.1 trillion,
nearly flat from a year before.
Hon Hai doesn’t give guidance or hold earnings conferences. Its shares closed down
0.9% on Tuesday.
Apple hasn’t disclosed sales
numbers for the iPhone X. The
phone made its debut with
long lines at Apple stores
around the world and shipping
delays of five-to-six weeks,
showing that the company
hadn’t ramped up production
enough to meet demand. The
delay had shrunk to three to
four weeks in the U.S. as of
Tuesday afternoon.
The iPhone X is one of a trio
of new iPhones that Apple released this year. The company
started selling the lower-cost
iPhone 8 and 8 Plus six weeks
earlier.
Chief Executive Tim Cook
said when Apple reported
quarterly results this month,
that production of the iPhone
X is “going well” but declined
to say when supplies would
catch up with demand.
Mr. Cook acknowledged that
forecasting demand for the devices has been challenging. “If
we would have shipped all at
once, that would have been our
preferred scenario, obviously,
Please see RESULTS page B2
HEARD ON THE STREET | By Nathaniel Taplin
China Holds Key to Global Coal Industry
The U.S. is
coal country
again, thanks
to President
Donald
Trump.
But in the real coal country—the one that sucks up
half of global supply every
year—demand for the black
stuff is poised to deteriorate
sharply over the next year.
Investors hoping strong
global growth and favorable
U.S. policies will boost coal
prices and stocks should instead focus on China.
Winter is usually China’s
peak coal season, but this
time around environmental
inspections, rebounding hydropower, and slowing realestate development are together painting a dire
picture for demand.
Figures released Tuesday
showed Chinese power demand in October increased
at the slowest rate since
mid-2016. Production of
nearly every other heavy in-
dustrial product also slowed
as a weaker property market
and pollution crackdowns
start to bite.
Meanwhile, hydropower
output rose 17% as the effects of a nasty drought
faded. Coal power production went negative for the
second month in a row, falling almost 3% on the year.
The medium-term outlook
is even worse. Drives to cut
capacity in electricity intensive industries like aluminum and steel aren’t going
away, meaning another
structural step down in industrial power demand over
coming years is likely. President Xi Jinping’s emphasis
on a “better” life for Chinese
citizens means tougher environmental enforcement is
here to stay.
Finally, a glut of cheap
natural gas in Asia means
that shutting down dirty
coal plants in China is more
affordable than in the past.
The one really bullish fac-
Off the Grid
Chinese power output, change
from a year earlier
40%
Hydro
Overall
Coal
20
0
–20
2014
2015
2016
2017
Source: CEIC
THE WALL STREET JOURNAL.
tor for coal, ironically, is the
huge debt China’s benighted
coal firms are carrying. Chinese regulators have a
strong incentive to keep coal
prices from falling too far—
and have strengthened price
controls over the past year—
to keep coal firms and their
employees afloat. “Supplyside reform” goes only so
far.
Still, investors hoping
coal stocks will catch a tailwind from the bullish sentiment lifting most industrial
commodities are likely to be
disappointed.
Chinese firms like Hong
Kong-listed Yanzhou Coal
Mining and China Coal Energy have already sold off
about 5% to 10% since midSeptember as coal prices
have begun to flag. Share
prices of Western producers
like Glencore have also
come under pressure.
By contrast, rival Rio
Tinto, the current darling of
mining analysts, is rapidly
selling down its own coal
portfolio and recently cut
its coal thermal output forecast for 2017 by about a
quarter.
Coal prices aren’t necessarily set to collapse, but
optimists hoping that U.S.
policies alone can rescue the
global coal industry and
push prices higher are in for
a long, hard dig.
B2 | Wednesday, November 15, 2017
INDEX TO BUSINESSES
B
Bank of America.........B2
Blackstone Group ..... B13
Boeing....................B1,B3
Bonanza Creek Energy
.....................................B7
Broadcom .................. B20
Brookfield Property
Partners....................B8
C
Freeport-McMoRan...B19
Frontier
Communications.......B1
G-H
General Electric...B1,B19
GGP..............................B8
Glencore ...................... B1
Hamilton Beach Brands
Holding....................B20
Hasbro.........................B7
HNA Group................B18
Hon Hai Precision
Industry.....................B1
I-J
Indivior........................B7
Infineon Technologies
...................................B20
Intel...........................B20
J.P. Morgan Chase......B2
Just Play.....................B7
K-M
CBRE Group.................B8
CenturyLink.................B2
China Coal Energy ...... B1
CIT Group..................B20
Citizens Financial ..... B20
Comcast.......................B4
Comerica....................B20
Cree ........................... B20
D
Keurig Green Mountain
...................................B20
Macerich......................B8
Mattel..........................B7
Metro-Goldwyn-Mayer
.....................................B2
MSG Networks ........... B3
N
R-S
Range Resources......B19
Rio Tinto ..................... B1
Sandler O'Neill and
Partners....................B8
SandRidge Energy ...... B7
Siemens.....................B20
Singapore Airlines......B3
SL Green Realty..........B8
Sprint .......................... B2
Starbucks..................B20
STMicroelectronics...B20
T
Taubman Centers........B8
Tesla..........................B20
Thesys Technologies.B18
Time Warner..........B2,B4
TJX...............................B7
T-Mobile USA..............B2
U-V
Umicore.....................B20
Universal Pictures......B1
Vanguard...................B18
Verizon Communications
.....................................B1
Viacom.........................B4
VISA ............................ B2
W
Wal-Mart Stores.........B8
Walt Disney................B4
Warby Parker..............B8
Warner Bros................B2
Westfield.....................B8
William Blair...............B2
E-F
Netflix.........................B4
Newfield ExplorationB19
Nintendo......................B1
NXP Semiconductors
...................................B20
Eaton Vance..............B18
Emirates Airline ......... B3
Foxconn Technology....B1
P-Q
Y-Z
PayPal Holdings..........B2
Qualcomm.................B20
Yanzhou Coal Mining..B1
Zions Bancorp...........B20
Deutsche Bank .... B1,B18
Discovery
Communications.......B4
INDEX TO PEOPLE
A
H
P
Aspbury, Peter............B2
Heymann, Nicholas.....B2
Palfrey, Patrick.........B20
Peruzzi, Larry............B19
B
I
Baele, Mike...............B19
Inch, John....................B1
R
C
K
Chiavarone, Steve.....B20
Clark, Tim....................B3
Cryan, John...............B18
Kimishima, Tatsumi ... B2
Robertson, Anthony...B1
Rosenthal, Steven....B18
Rotrosen, John............B7
D
Dimon, James.............B2
Dray, Deane.................B2
E
Enders, Tom................B3
F-G
Flannery, John.....B1,B19
Fuhrman, Peter...........B3
Guff, Mac .................... B2
L
Lee, Joshua.................B7
Lipow, Andy..............B19
Lott, David..................B7
M-O
Mallinson, Richard....B19
McGregor, Jim.............B3
Miller, Brendan...........B2
Miller, Jamie...............B2
Miyamoto, Shigeru.....B2
Mueller, Jeff ............... B2
O'Sullivan, Michael...B18
RESULTS
Continued from the prior page
but we didn’t have that
choice,” Mr. Cook said in an interview at the time.
Suppliers and contract electronics makers that rely heavily on Apple often are hit when
production bottlenecks emerge
in Apple products.
Pegatron Corp., which assembles the iPhone 8, said last
week that its quarterly net
profit fell 32%, which analysts
attributed to components
shortages and labor issues.
The production problems of
the iPhone X included a short-
YIELD
Continued from the prior page
largest wireless carriers, TMobile US Inc. and Sprint
Corp., along with companies
that still rely heavily on legacy
landline assets such as Frontier and CenturyLink Inc. Representatives for those companies didn’t comment for this
article.
Bonds backed by Frontier
and CenturyLink have dropped
sharply after both companies
reported lackluster third-quarter earnings along with downward revisions to projected
earnings. Frontier’s 11% notes
due 2025 are trading well below par at around 76 cents on
the dollar, down from 85 cents
at the end of last month, according to MarketAxess.
In the case of Sprint, the recent bad news was the breakdown of merger talks with TMobile. Its 6.875% bonds due
2028 traded above 110 cents
on the dollar as recently as
20%
Year-to-date drop in shares of
S&P 500 telecom companies
Oct. 30 but were below par at
99.25 cents on the dollar on
Tuesday.
Challenges exist in Europe
as well: For example, the chief
executive of Altice quit last
week and the Dutch-listed telecom is grappling with disappointing earnings and large
debts. Altice bonds maturing
in 2028 traded at 94 cents of
face value late in the European
afternoon Thursday, according
to Tradeweb. They were trading above par as recently as
early November.
Some investors noted the
selling followed a long rally in
junk bonds that came as ultralow interest rates around
the developed world pushed
S
Schütz, Alexander .... B18
Smith, Gordon.............B2
Stanley, Stephen........A2
T
Tan, Adam.................B18
V
Volkow, Nora...............B7
Z
Zion, Isaac...................B8
age of components used in the
facial-recognition system and
manufacturing difficulties over
the organic light-emitting diode screens, The Wall Street
Journal has reported.
Production of the iPhone X
is likely to rise in coming
months. Apple’s production
volume rose around 3% in the
third quarter to about 44 million iPhones from the previous
quarter, research firm TrendForce said in a note. In the
fourth quarter, that is anticipated to jump to 81 million
phones, with the iPhone X expected to account for a third of
that, TrendForce said.
—Liza Lin in Shanghai
contributed to this article.
investors into high-yielding
debt. In October, the extra
yield to hold junk bonds relative to ultrasafe Treasury
bonds was on the verge of
reaching its lowest level since
before the financial crisis.
Problems largely confined to a
specific set of companies
shouldn’t be seen as a harbinger of a widespread market
downturn, some observers
said.
“This is more about idiosyncratic risk,” said Jeff Mueller,
a high-yield debt portfolio
manager at Eaton Vance.
Bonds issued by communications companies, a grouping
that includes telecom as well
as advertising, internet and
media companies, are widely
held. In the iShares iBoxx $
High Yield Corporate Bond exchange-traded fund, the largest junk-bond ETF, with $18.5
billion in assets, communications-company bonds make up
24% of the portfolio, including
five of the top 10 holdings. The
ETF is down roughly 2% this
month, erasing much of its
2017 gain.
“We’ve had such low volatility for so long now that a
move like the one we saw last
week seems a lot more dramatic,” said Peter Aspbury,
fund manager at J.P. Morgan
Asset Management.
Messrs. Aspbury and Mueller both said that the recent
wobble gave them the opportunity to buy bonds they had
already wanted at a cheaper
price.
Cash calls for high-yield
bond funds haven’t been particularly large so far. The fourweek moving average of net
flows from U.S. loan funds was
$536 million in the week ended
Nov. 8, according to Thomson
Reuters Lipper. That result
isn’t a big outlier when compared with the rest of the year.
For outflows to surge, concerns would have to grow that
a larger share of issuers is in
danger of defaulting, and there
is no sign of that yet, Mr.
Mueller said.
—Nick Kostov
contributed to this article.
Mobile Payments Stymie Chase
BY EMILY GLAZER
Many U.S. companies from
startups to Apple Inc. have
struggled to gain traction in
the fast-growing world of mobile payments.
The country’s largest bank
is no exception.
J.P. Morgan Chase & Co.,
run by chairman and CEO
James Dimon, has made numerous splashes to promote
its mobile offerings, including
a television spot featuring a
Ping-Pong playing Serena Williams. But the payoff has yet
to come.
Banks view mobile commerce as one of their biggest
opportunities, but they still
largely trail technology firms
and nonbanks such as Visa
Inc. and PayPal Holdings Inc.
Still, banks are pushing to expand offerings to have them in
place for the day when the
general U.S. consumer flocks
to paying with their phone as
much as millennial consumers
have begun to do or those in
other countries such as China.
J.P. Morgan’s newest focus
is on Chase Pay, which is designed to make it easier for
customers to pay with their
smartphones in stores and online. The bank has spent about
$100 million on it, according
to people familiar with the
matter.
While J.P. Morgan doesn’t
disclose financial details about
Chase Pay, a May survey from
Bernstein Research ranked
it ninth among U.S. mobile
wallets with only 6% of online
shoppers saying they had used
it in the previous year, a fraction of the 61% who said they
used PayPal.
The bank is now reframing
its plans as more of a longterm play. J.P. Morgan executives still project that Chase
Pay could at a minimum enhance its customers’ creditcard, debit-card and merchant
relationships. Still, the app isn’t
Chasing Rivals
Percent of online shoppers using
various mobile wallets over last
12 months
61%
PayPal
20
Visa Checkout
16
Amazon Pay
12
Apple Pay
11
Android Pay
Samsung Pay
8
MasterPass
7
Facebook
6
Chase Pay
6
Square Cash
5
Amex Express
5
James Dimon, the chairman
and CEO of J.P. Morgan Chase.
Source: Bernstein Research May 2017 survey
widely used yet and the rollout
with merchants has fallen behind schedule, according to
people familiar with the matter.
“We’re trying to get Chase
Pay embedded in as many
places as possible,” Mr. Dimon
said at an industry conference
in September. “We’ll see how
it pans out.”
It is a far cry from J.P.
Morgan’s announcement of the
product at a large financialtechnology conference two
years ago in Las Vegas. The
payment app’s struggles also
contrast with the rapid migration the bank’s customers are
making to mobile for variety
of basic banking functions like
watching balances and depositing checks.
With payments, J.P. Morgan
has been challenged by two
factors: competitors have
moved quickly while potential
customers have moved slowly.
Most Americans still prefer
using their cards, along with
cash and checks.
While Chase Pay works
through the bank’s cards too,
there hasn’t yet been enough
of an impetus to switch, analysts say. “Customers aren’t
out there asking for a new way
to pay,” says Brendan Miller, a
principal analyst at Forrester
Research Inc. “Too many of
these players are focused on
the payment, not the things
that are going to drive the
consumer to buy.”
Other countries, notably
China, have taken to mobile
payments more quickly. There,
payments are often integrated
THE WALL STREET JOURNAL.
It has spent $100
million on its latest
bid to capture a
bigger market share.
into text messages, and analysts estimate the size of the
mobile-payments market is 30
times or more the size of the
U.S. business.
In the U.S., rivals to J.P.
Morgan have stressed other
approaches, including Bank of
America Corp., which have
avoided their own branded
mobile wallets.
Meanwhile, J.P. Morgan
joined a group of large banks
in June in connecting their ex-
isting smartphone apps to an
industry consortium that developed a money transfer network known as Zelle to compete with PayPal’s Venmo. That
effort replaced large parts of
J.P. Morgan’s earlier mobile
payment effort, Chase QuickPay, which now works through
Zelle, even though the bank
still uses the QuickPay name.
The bank’s payment business, run by consumer-bank
head Gordon Smith, is also
competing with smartphone
makers such as Apple and
Samsung Electronics Co., and
credit-card networks such as
Visa and Mastercard.
“We said from day one that
changing customer behavior
would be tough,” J.P. Morgan
spokeswoman Trish Wexler
said, in regards to Chase Pay.
“But we’re Chase, and our customers expect us to lean into
the future and learn what we
can now so we’re ready when
they are.”
J.P. Morgan is laying the
groundwork by signing on
large retailers including WalMart Stores Inc., Best Buy Co.
and Starbucks Corp. J.P. Morgan initially announced other
big retailers through an industry consortium, including
Target Corp., but didn’t roll
out Chase Pay with some of
them after the consortium
dissolved.
Chase Pay faces even more
competition than it has seen so
far. Wal-Mart, while still accepting Chase Pay, has been
developing its own parallel
wallet dubbed Wal-Mart Pay. In
early 2018, stores including
West Elm and Pottery Barn will
start accepting both PayPal and
Venmo for the first time.
Meanwhile, a July survey from
Morgan Stanley analysts found
that PayPal was accepted at
377 of nearly 500 top online
merchants while Chase Pay
was accepted at only four.
—Peter Rudegeair
contributed to this article.
GETTY IMAGES
A
BUSINESS & FINANCE
MISHA FRIEDMAN/BLOOMBERG NEWS
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.
Airbnb..........................B4
Airbus..........................B3
Albemarle..................B19
Alkermes.....................B7
Allianz .........................B8
Altice USA.............A2,B1
Amazon.com..........A1,B3
AMC Networks ........... B4
Apple...........................B1
AT&T............................B1
THE WALL STREET JOURNAL.
* ****
The dozens of ‘Super Mario Bros.’ games and their spinoffs are widely believed to be the best-selling videogame franchise ever.
MARIO
Continued from the prior page
for movies or TV shows based
on any of its marquee characters since 1993’s commercially
and critically disastrous “Super
Mario Bros.” starring Bob Hoskins, John Leguizamo and Dennis Hopper. Since then, its only
cinematic efforts have been 20
inexpensive children’s animated
movies based on its “Pokémon”
games that were produced by
an affiliate.
The most complicated issue
in the negotiations between Illumination and Nintendo has
GE
Continued from the prior page
Wall Street” was betting on further GE declines. Now investors
are trying to decide on the appropriate multiple, whether the
outlook is credible and where
GE could end up if the economy
slows down, the person said.
RBC Capital analyst Deane
Dray downgraded GE stock to
sector perform from outperform, citing the unexpected
length of a turnaround.
“While the market was not
expecting any quick fixes, we believe that CEO John Flannery’s
highly anticipated plan fell short
been making the Japanese videogame company feel confident
it will be involved enough in
the creative process, said one
person close to the talks. Nintendo’s creative guru, Shigeru
Miyamoto, who created Mario
Bros., has been part of the talks
and likely will be a producer on
the movie, along with Mr. Meledandri, this person said.
The agreement could allow
Illumination to make multiple
“Super Mario” movies, though
only one is planned, this person
added. It would be animated by
Illumination’s Paris studio Mac
Guff and is in the early stages
of development, meaning it
likely wouldn’t come out for
of expectations regarding the
scope of the business model/
portfolio changes,” Mr. Dray said
in a note to clients.
Nicholas Heymann, an analyst with William Blair & Co.
who still has an outperform
rating on the stock, is less
pessimistic. He sees the shares
under pressure for a few
weeks, but expects them to
settle around $20 to $21.
Both Mr. Flannery and GE
Chief Financial Officer Jamie
Miller on Tuesday defended
the dividend cut as a necessary step so the extra cash can
be allocated in different and
more flexible ways.
—David Benoit and Ben Eisen
contributed to this article.
several years.
Nintendo CEO Tatsumi Kimishima said in an interview
last year with Japanese newspaper Asahi Shimbun that the
company was in talks with several Hollywood studios about
making movies based on its
games.
In an April analyst briefing,
Mr. Kimishima said the company is making theme-park and
movie deals less for the potential profits from licensing than
for the additional sales revenue
that could come from “synergy
with the dedicated videogame
business.”
Videogame movies have had
a relatively poor record at the
box office. Last year’s “Warcraft” was a flop in the U.S.,
though it did well in China, and
other disappointments have included adaptations of “Doom,”
“Need for Speed,” “Prince of
“Persia” and “Assassin’s Creed.”
Still, they remain attractive
to Hollywood. Time Warner
Inc.’s Warner Bros. and MetroGoldwyn-Mayer Inc. in March
will release a reboot of “Tomb
Raider,” after a pair of films in
the early 2000s based on the
games about an explorer and
action hero had mixed results.
An “Angry Birds” animated
movie last year performed decently and a sequel is scheduled for 2019.
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THE WALL STREET JOURNAL.
* *
Wednesday, November 15, 2017 | B3
BUSINESS NEWS
BY ROBERT WALL
DUBAI—After stepping back
from making a big expected order for Airbus SE’s largest jet,
the A380 super jumbo, Emirates Airline on Tuesday ratcheted up the pressure on the
plane maker, demanding it commit to making the unprofitable
plane for at least another decade before it buys any more.
“The undertaking that Airbus will have to make if we go
ahead with a further order is
that the plane will continue in
production for a period of minimum of 10 to 15 years,” Emirates Airline President Tim Clark
said at the Dubai Air Show.
Emirates is the A380’s biggest customer, with 100 of the
jets in service and a further 42
already on order. It had been
expected to order more than
30 more of the planes in a
deal that would have a list
price of around $15 billion.
The Persian Gulf carrier’s
reluctance is the latest headwind for the A380—a program
that Airbus has sunk more
than $20 billion into as it tried
to upstage Boeing Co.’s popular 747 jumbo jet. Emirates’ negotiating ploy also spotlights
the dependence of the A380 on
support from one airline.
Airbus’s effort to develop
the double-decker plane that
can seat more than 500 passengers initially ran behind
NUMBER OF PLANES
AIRLINE
0
25
50
schedule and costs skyrocketed.
The Toulouse, France-based
company has failed to make
money on the program because
of a dearth of orders, and after
more than a decade of production each A380 still costs more
to build than Airbus can
charge. An A380 costs $436.9
million at list price, though airlines typically get discounts.
The bleak outlook for the
A380 was punctuated this
month when the first of the
jets, once operated by Singapore Airlines, was placed in
long-term storage after the
airline opted not to extend an
initial lease period. The carrier
is the second biggest A380
customer, having ordered 24.
Airbus officials have in the
past suggested they are concerned about the financial viability of the program, though
Chief Executive Tom Enders
last month said he expected
the aircraft to remain in production another decade.
Its difficulties come at a
time when big four-engine
planes such as the A380 and
Boeing’s 747 have fallen out of
favor with carriers, forcing the
plane makers to cut production plans.
Emirates underscored the
popularity of smaller longhaul jets with its commitment
this week to take 40 Dreamliners in a deal valued at more
than $15 billion at list price.
75
100
125
150
Emirates Airline
Singapore Airlines
Qantas
Dubai Dependence
Amedeo
Lufthansa
British Airways
Qatar Airways
Airbus A380 orders from
Dubai-based Emirates Airline
dwarf those of the plane's other
top 10 buyers
Korean Air
Etihad Airways
Air France
Source: the company
THE WALL STREET JOURNAL.
Madison Square Garden Seeks Buyer for WNBA’s New York Liberty
NATHANIEL S. BUTLER/NBAE/GETTY IMAGES
Airbus, Emirates
Face Off Over Jet
The Madison Square Garden
Co. is looking to sell its Women’s
National Basketball Association
franchise, the New York Liberty.
The New York Liberty, established in 1996, is one of the original eight teams in the women’s
professional basketball league.
The company said Tuesday it is
actively seeking a buyer to take
over immediate operations of
the franchise.
MSG, which also owns Madison Square Garden—home of
the Liberty—and the National
Basketball Association’s New
York Knicks, was the team’s first
owner. (At left, Sugar Rodgers
of the Liberty, with the ball.)
“This was a difficult decision
for us, which we made after
carefully assessing the needs of
our business,” Chief Executive
James Dolan said.
The announcement about
seeking a buyer of the team
comes one day after the company said David O’Connor would
step down from his roles as
CEO and president. The company named Mr. Dolan as his interim successor.
—Austen Hufford
Amazon Bends to Beijing’s Call
Rule change prompts
sale of company’s
cloud hardware in
China to local partner
Amazon.com Inc. on Tuesday said it has sold computing
equipment used for its cloud
services in China to its local
partner, Beijing Sinnet Technology Co., in a move analysts
said underscores the increasingly chilly atmosphere for foreign companies in the country.
Amazon Web Services said it
took the step to meet new Chinese regulations.
“Chinese law forbids nonChinese companies from owning or operating certain technology for the provision of
cloud services,” AWS said. “As
a result, in order to comply
with Chinese law, AWS sold
certain physical infrastructure
assets to Sinnet, its longtime
Chinese partner.”
The company said it remains
committed to China and that
customers would continue to
receive AWS cloud services. It
also said the deal didn’t involve
any transfer of intellectual
property.
Beijing Sinnet, in a regulatory filing late Monday, said it
was paying up to 2 billion yuan
($300.8 million) for the computing assets.
Peter Fuhrman, chairman of
technology investment bank
China First Capital, said Amazon’s decision illustrates China’s
tightened grip on those companies that provide internet services.
“The key policy brickwork is
now done,” Mr. Fuhrman said.
“The Chinese internet, in its
broad entirety, will become
even more comprehensively
managed by the Chinese state.”
Mr. Fuhrman added that
such protectionist moves will
ultimately limit China’s access
to the latest technology and
could hurt its competitiveness
over the long term.
Jim McGregor, chairman of
the Greater China region for
public-affairs consultancy APCO
Worldwide, said Amazon’s
move should be viewed in light
of China’s Made in China 2025
plan to promote the nation’s
domestic enterprises and technologies. “China has a different
plan and it has the power,” he
said.
U.S. tech companies in China
are dealing with a different
world “and it would be corporate suicide not to acknowledge
it,” he added.
Amazon and other U.S.
companies, including Apple
Inc., have faced increased
pressure in the country in recent months in the face of the
Chinese government’s desire
to control cyberspace.
Early this year, China’s Min-
istry of Industry and Information Technology informed foreign companies with cloud
ventures that new operating licenses would be applied by
year-end.
Amazon’s deal with Sinnet
could clear the final obstacles
for AWS to get such licenses,
analysts from Citic Securities
said in a note Tuesday.
Late last year, China’s MIIT
also issued draft measures calling for tighter technical cooperation between foreign cloud operators and their local partners.
The proposed rule change triggered complaints from more
than 50 U.S. lawmakers, that
the change would force U.S.
companies to essentially transfer ownership and operations
of their cloud systems to Chinese partners.
MIIT officials had no comment.
—Yang Jie in Beijing
and Liza Lin in Shanghai
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THE WALL STREET JOURNAL.
B4 | Wednesday, November 15, 2017
TECHNOLOGY
More than 200 North American cities and regions are lining up to apply for
Amazon's second headquarters, describing their cities in flowery terms.
THE BEST OVERALL
Amazon's preferences include a ready-to-go location by 2019. But it's also looking at cultural
fit, the cost of living and the favorability of the state tax climate for business. Dallas, Boston
and Washington, D.C., rank highest.
Tech labor force
College population*
Fiscal health
Culture fit
Cost of living
State tax rank
DALLAS
Better
HOW THIS WORKS
The Wall Street Journal used
Amazon's criteria, interviews
with site-selection experts
Worse
and people familiar with
Amazon's thinking to come up with a list of
potential locations for a new corporate center.
Cities are ranked based on factors in the
company's request for proposals, using an equally
weighted index to average the cumulative scores.
The more bars there are in each category of the
radar plots, the higher the ranking.
BOSTON
THIBAULT CAMUS/ASSOCIATED PRESS
Amazon’s Second Home
WSJ.com/Tech
D.C.
A cap will limit the days per year that hosts can rent dwellings.
MOST TECH TALENT
NEW YORK
One of the most
important factors in
the search for a new
headquarters is
ensuring enough
tech talent to keep
Amazon growing.
MOST SEATTLE-LIKE
ATLANTA
Amazon has called
the Seattle area
home since the
company was
founded in Chief
Executive Jeff Bezos'
garage in 1994.
The company plans
to add 50,000
employees there
over 10 to 15 years,
including many
software developers,
and that will require
enough trained
people in the area.
The online retail
giant's rapid growth
there has meant
rising property prices
and more traffic, but
has helped transform
the city into a tech
hub.
D.C.
CHICAGO
OTHERS WE LOOKED AT
NASHVILLE
CHICAGO
AUSTIN
DENVER
MINNEAPOLIS
SEATTLE
NEWARK†
Denver has a strong
cultural fit, with the
most craft breweries
per capita among
these cities.
Top universities such as
Northwestern and the
University of Chicago feed
into the Chicago metro area.
Methodology:
COLLEGE POPULATION: Percentage of population that is college educated.
TECH LABOR FORCE: Total labor force in a tech occupation. Includes tech jobs not in the tech industry.
FISCAL HEALTH: Cities are scored on metrics including ratio of general fund balance to expenditures;
ratio of pension contributions to total government-wide revenues; change in unemployment rate in
2015; and change in property values in 2015.
COST OF LIVING: Estimated cost of living for mid-management households by weighting different
consumer expenditure categories.
CULTURAL FIT: Sites that reflect ‘Cultural Community Fit’ and ‘Community/Quality of Life’ as outlined
in the Amazon request-for-proposals, including strong universities, diverse population, recreational
opportunities and an overall high quality of life. Excludes government incentive packages.
STATE TAX RANK: Based on tax rates, including corporate, income and property taxes.
One is lowest tax state, 50 is highest tax state.
*Percentage of population that is college-educated. †Includes all of Northern New Jersey
Sources: Green Street Advisors, Real Estate Analytics
THE WALL STREET JOURNAL.
BY CARA LOMBARDO
There’s now a way to get
about three dozen entertainment-oriented cable channels
for $16 a month, so long as
you can live without access to
the big game.
The online-TV service Philo
launched Tuesday with a bundle
of 37 channels, including Comedy Central, TLC, Food Network,
AMC and A&E. It is the newest
player in a sea of streaming offerings ranging from “skinny
bundles” of channels to access
to individual networks.
The people behind Philo and
the networks supplying its programming say it is a long overdue package aimed at cable TV
“cord-cutters” who don’t watch
sports and cable news channels.
Skeptics see it as a roundup of
less-popular networks with a
limited market on their own.
Philo subscribers will get
access to a slate of channels
owned by Discovery Communications Inc., Viacom Inc.,
Scripps Networks Interactive,
A+E Networks and AMC Networks Inc. Its other channels
include Nickelodeon, Animal
Planet, History and MTV.
The five companies supplying programming are also
Philo’s main financial backers,
together investing $25 million.
Some of their networks
aren’t part of the streaming
TV bundles offered by the likes
of YouTube and Hulu. Offering
their own entertainment-focused bundle is a direct way of
reaching cord-cutters.
COMEDY CENTRAL/EVERETT COLLECTION
Hello, Sports Fans, This Is Not for You
Philo’s bundle includes Comedy
Central, home of ‘South Park.’
For an entertainment-focused package, there are some
holes. Properties from Comcast Corp.’s NBCUniversal such
as Bravo and E! are missing, as
are Time Warner Inc.’s TNT
Paris Authorities
Give Airbnb Plan
Chilly Reception
BY SAM SCHECHNER
PARIS—Airbnb Inc. plans to
curb rentals of some of its most
popular listings in the French
capital, expanding its bid to placate regulators in the U.S. and
Europe—but not enough to satisfy some city officials here.
The home-sharing firm said
Tuesday it would start automatically capping the number
of days a year that hosts can
rent out dwellings in parts of
central Paris—the company’s
largest market by listings, with
65,000. That will effectively
force some hosts to comply
with the city’s legal limit on
short-term rentals of noncommercial homes to 120 days a
year—but without forcing hosts
in other parts of Paris to do so.
Airbnb’s decision to enforce
a cap in parts of Paris is the
first expansion of a measure
the firm rolled out last year in
London and Amsterdam, establishing it as a template in
the company’s efforts to calm
activists and regulators worldwide. Many cities argue that
the firm’s short-term rentals
make it more lucrative for
property owners to cater to
tourists than to rent out
homes to long-term residents,
and have sought to limit them.
“We want to do our bit to
address historic housing concerns in central Paris and help
make this city a better place
for everyone,” said Emmanuel
Marill, Airbnb’s general manager for France.
However, Paris officials dismissed the move as insufficient
because it will block Airbnb
listings only in the city’s first
four arrondissements from be-
and TBS. Philo also doesn’t include broadcast networks.
Philo Chief Executive Andrew
McCollum, who was a founding
member of Facebook, said Netflix Inc. and other established
services are failing to capture
the social aspect of watching
TV. Philo plans to add social
features early next year to let
users see what their friends are
watching and sync viewing so
people can watch shows together from different locations.
Walt Disney Co. chief Bob
Iger dismissed the idea of a
Philo-like product when asked
this year about lower-cost
packages that exclude sports.
“I don’t see how that’s practical in terms of gaining much
penetration,” said Mr. Iger,
whose company owns ESPN.
Other Big Cities
Win Concessions
Airbnb has long denied having a significant impact on
housing, but in recent years it
has started making an effort
to cozy up to local officials and
soothe complaints. In March,
the company settled a lawsuit
it had filed against a tough
San Francisco law by agreeing
to help register hosts on behalf
of the city. In Berlin, the company has lobbied to convince
legislators to revise a law that
makes it difficult for residents
to rent out homes.
One of the firm’s biggest
Micro Trends,
Macro Context.
In Minutes.
THE DAILY SHOT
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Get a complete look at the trends moving global markets
with The Daily Shot. WSJ’s latest member-exclusive
newsletter delivers a sophisticated, impartial view in 30-plus
charts, every morning. Sign up at WSJ.com/dailyshot
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5150
ing rented beyond the 120-day
limit without special authorization. That means it applies to
tourist-filled neighborhoods
like the Marais and the area
around the Louvre Museum, but
doesn’t include other popular
areas like Montmartre or the
Left Bank, even though they are
also subject to the legal limit.
“The law says illegal listings
should be removed in all the
arrondissements,” Ian Brossat,
Paris’s deputy mayor in charge
of housing policy, wrote on social media. “Last I heard, the
law of profit doesn’t trump the
laws of the Republic.”
An Airbnb spokesman said
the company put the cap where
violations appear to be concentrated, in order “to address local
problems where they are.” He
added that “our goal is not to
replace law enforcement.”
Airbnb is implementing the
automatic cap in Paris during a
tense time for the company in
France. Government officials
have said they believe the company should pay more income
tax in the country. And in December a new law—which the
Airbnb lobbied against—will
oblige Parisians renting out
their primary residences on
platforms like Airbnb to register
with the city, and post registration numbers on listings. Owners renting apartments that haven’t been registered or go
beyond the legal limit face fines
of up to €50,000 ($58,600). City
inspectors also mount operations to find and prosecute violators. Mr. Brossat said the city
has issued fines to owners of illegal tourist apartments totaling
€991,000 so far this year, three
times the amount in all of 2016.
concessions so far has been the
voluntary curbing of its most
prolific hosts—which the firm
says represent a small sliver of
its listings, but likely account for
a larger slice of its revenue. So
far in London, where it has applied a citywide cap, the company says the effort successfully
has pared listings. The number
of rentals that go over the city’s
90-day-a-year limit has declined
from 21% of rentals before the
rule to 7% this year, the company said in a September report.
The rentals still over the limit include apartments with special
authorization and those that
went over the limit before the
cap was applied, Airbnb said.
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.
Wednesday, November 15, 2017 | B5
OPEN LETTER
Interactive Brokers Group
777 South Flagler Drive
West Palm Beach, Florida 33401
Thomas Peterffy
Chairman
November 14, 2017
J. Christopher Giancarlo
Chairman, Commodity Futures Trading Commission
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581
Re:
Dangers of Clearing Bitcoin and Cryptocurrency Derivatives in Same Clearing
Organization as Other Products
Dear Chairman Giancarlo:
I am the Chairman and founder of Interactive Brokers LLC, a futures commission merchant and
broker-dealer with over $ 3.8 billion in regulatory net capital and over $1.2 billion in client margin
funds (Interactive Brokers Group is publicly traded on Nasdaq with a market cap of over $22 billion).
As a CME clearing member, we are deeply concerned with proposals that would allow Bitcoin and
other cryptocurrency derivatives to be cleared in the same clearing organization as other products.
This letter is to request that the Commission require that any clearing organization that wishes to clear
any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from
other products.
There is no fundamental basis for valuation of Bitcoin and other cryptocurrencies, and they may
assume any price from one day to the next. This has been illustrated quite clearly in 2017 as the price
of Bitcoin has increased by nearly 1000%.
Cryptocurrencies do not have a mature, regulated and tested underlying market. The products and
their markets have existed for fewer than 10 years and bear little if any relationship to any economic
circumstance or reality in the real world.
Margining such a product in a reasonable manner is impossible. While the buyer (the long side) of a
cryptocurrency futures contract or call option could be required to put up 100% of the value to ensure
safety, determining the margin requirement for the seller (the short side) is impossible.
Instituting daily price move limits on cryptocurrency derivatives does not solve the problem. In a
runaway upward market for example (like the silver market in the 1980’s caused by the Hunt brothers),
the futures price gets locked limit-up day after day with little or no trading and the short sellers are
If the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency
together with other products, then a large cryptocurrency price move that destabilizes members that
clear cryptocurrencies will destabilize the clearing organization itself and its ability to satisfy its
fundamental obligation to pay the winners and collect from the losers on the other products in the
same clearing pool.
Accordingly, even clearing members who do not wish to clear cryptocurrencies because they judge the
risk to be too great cannot isolate themselves and their customers from a potentially catastrophic loss
from cryptocurrency risk at the clearing organization.
Thus, it is no answer for the proponents of clearing these products to suggest that objecting clearing
members can simply charge very large margins or not offer cryptocurrencies at all. In a central
clearing organization, all members are at risk for the activities of any member (and of the clearing
organization itself).
Unless the risk of clearing cryptocurrency is isolated and segregated from other products, a catastrophe
in the cryptocurrency market that destabilizes a clearing organization will destabilize the real economy,
as critical equity index and commodity markets cleared in the same clearing organization become
infected.
whole) from the unique risks inherent in clearing cryptocurrencies is to require that they be cleared in a
separate clearing system, isolated from other products.
We would be happy to discuss this with you or to provide any further information at your convenience.
Sincerely,
Chairman
The Professional’s Gateway to the World’s Markets
www.interactivebrokers.com
AMERICAS
GREENWICH
CHICAGO
WEST PALM BEACH
MONTREAL
EUROPE
ZUG
LONDON
BUDAPEST
ST. PETERSBURG
TALLINN
ASIA
PACIFIC
HONG KONG
MUMBAI
SHANGHAI
SYDNEY
TOKYO
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
B6 | Wednesday, November 15, 2017
THE WALL STREET JOURNAL.
NEAL LIPSCHUTZ EDITOR, ETHICS AND STANDARDS
The Face of Real News
Neal Lipschutz and the standards team hold the WSJ newsroom to the
highest principles of journalism, even in the face of adversity. In 2015, he
helped fight a court order barring the Journal from running a story about
the controversial arrest of a stock analyst in India. Story updates meant
giving the subject another chance to respond—and seek another
injunction. But it was worth the risk to be accurate and fair.
Real journalists and real news from America’s most trusted newspaper.
WATCH HIS STORY AT WSJ.COM/NEAL
#TheFaceOfRealNews
Source: Pew Research Center, Political Polarization & Media Habits, 2014
© 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6163
THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | B7
NY
* * * * *
BUSINESS NEWS
For Toy Makers, a New Game Study Compares
Addiction Drugs
BY PAUL ZIOBRO
BY JEANNE WHALEN
JOHN SCIULLI/GETTY IMAGES
Hasbro Inc. and Mattel Inc.
combined would result in a toy
company with a large but
hardly dominant share in a
highly fragmented industry.
The two companies, which
recently engaged in talks about
a possible tie-up, would control just over one-third of the
U.S. market for traditional toys
and games, according to Euromonitor International Ltd.
On a global scale, they would
control 22% of overall sales.
With a low barrier to entry,
the toy industry is populated
with hundreds of inventors and
small firms seeking to create
the next hit. Nevertheless, Hasbro buying Mattel would have a
big impact on the sector.
According to toy consultant
Richard Gottlieb, inventors
would have one less potential
buyer of their ideas. Entertainment companies like Walt Disney Co. would no longer be able
to play the two biggest companies off each other to extract the
best terms on licensing deals.
Retailers would face a supplier
with much greater sway.
“It’s highly destabilizing to
an industry to have such powerful and prominent players in
the industry having this kind
of disruptive situation,” Mr.
Gottlieb said. “If you’re an inventor, licensor or retailer, this
is a concern.”
In some categories, a united
Hasbro-Mattel would have much
greater heft. For example, in
model vehicles, which includes
Mattel’s Hot Wheels line of toy
cars, the two would control 62%
the U.S. market, according to
Children are seen playing with toys at a kids’ benefit in West Hollywood, Calif., in 2016.
Euromonitor data analyzed by
Wells Fargo. They would control
more than half of the market for
dolls and action figures.
Analysts were split as to
whether the combination would
trigger antitrust objections.
BMO analyst Gerrick Johnson
said the rise of competitors like
Lego A/S, Spin Master Inc. and
Just Play LLC “offer potential
counterbalances to a Mattel/
Hasbro combo.”
An important issue for regulators would be whether the
deal would make it easier for
the companies to raise prices,
“since they wouldn’t discipline
each other,” said Seth Bloom,
an antitrust expert with Bloom
Strategic Counsel PLLC.
Toy Tie-Up
U.S. market share by category
Hasbro
Mattel
Model vehicles
Dolls
Action figures
Baby
Games
Ride-on vehicles
Outdoor & sports
Total
0%
10%
20%
Source: Euromonitor International via
Wells Fargo Securities
30%
40%
50%
60%
THE WALL STREET JOURNAL.
ADVERTISEMENT
Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
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Chief Executive Officer Opportunity
Landmark Services Cooperative, Cottage Grove, Wisconsin, is a
member-owned cooperative business providing agronomy, animal
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over 15,000 members in communities throughout southern Wisconsin
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Potential candidates should have:
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Visit the job link at: https://tinyurl.com/ydf5em3v to learn more about
the position and to apply online, or contact David.Lemmon@chsinc.com.
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General Cardiologist.
Send CV to Beth Hedrick
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Hitachi Vantara, New York, NY:
Senior IT Systems Administrator:
Analyze, test, troubleshoot & evaluate existing network systems. Mail resume: B.
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Pleasanton, CA 94588. Job#864.483
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A closely watched trial
comparing two opioid-addiction treatments found patients
had a harder time beginning
treatment with one of the
medications, leading to more
relapses in that group.
Among patients who were
able to start treatment, the
medications were similarly effective at preventing relapse, a
finding researchers and the
study’s sponsor called particularly important.
The study, sponsored by the
National Institute on Drug
Abuse, was one of the first to
compare the monthly injection
Vivitrol to the daily oral drug
Suboxone.
As opioid addiction has
spread rapidly across the U.S.,
physicians have been awaiting
better evidence about the relative merits of various treatments, making the NIDA-financed trial an important
event.
The 570 opioid-dependent
patients in the trial were randomly assigned to one of two
groups. About 57% of those in
the Suboxone group experienced a relapse during the sixmonth study, according to results published in The Lancet.
A higher proportion—65%—
experienced relapse in the Vivitrol group. Much of the difference came down to the greater
difficulty of starting Vivitrol
treatment in the first place,
the researchers said.
Patients must stop taking
opioids for several days and
be fully detoxified before they
can get their first Vivitrol
shot—a step some addicts find
hard to take because it requires them to experience
some withdrawal symptoms.
Suboxone treatment can begin
immediately, making it an easier option.
Fewer study participants
were able to start treatment
with Vivitrol compared with Suboxone—about 72% versus
94%—and many of those who
failed to begin Vivitrol treatment
relapsed, the researchers said.
The subset of 474 patients
who were able to start treatment with one of the drugs experienced similar efficacy—just
over half of patients in each
group experienced a relapse.
Most physicians already
knew Vivitrol treatment was
harder to start, but there was
little data showing how well it
compared with Suboxone once
a person successfully began
treatment, said Joshua Lee, a
physician and associate professor at New York University
School of Medicine, who
helped lead the study.
“What is new, and what the
study was really about from
our perspective, was: What
happens if you are able to get
people onto one or the other
medication?” said his colleague, John Rotrosen, another leader of the study and
a physician and psychiatry
professor at New York University School of Medicine. “What
we were really hoping, and
what we found was...the two
medications would be sufficiently equal, so providers and
patients and families really
recognized they have a
choice,” he said.
Nora Volkow, director of
NIDA, said it was important to
65%
Portion of Vivitrol group that
relapsed, versus 57% for Suboxone
have different treatment options because some people
don’t respond to certain medications. “It’s the same as with
antidepressants...it’s better to
have a diversity of treatments,” she said.
In an editorial also published in The Lancet, an addiction specialist not involved in
the study said the similar performance of the drugs after
treatment initiation was consistent with the results of a
smaller study conducted recently in Norway.
The physician, David Lott,
an addiction psychiatrist at
University of Illinois College of
Medicine in Chicago, said the
Lancet study adds “to growing
scientific literature supporting
the effectiveness and safety”
of Vivitrol. But he added that
the “substantial induction hurdles for [Vivitrol] continue to
present challenges.”
Vivitrol maker Alkermes
PLC said the study “provides
additional evidence supporting
the use of Vivitrol.” Suboxone
maker Indivior PLC said it
couldn’t immediately comment.
Rates of death, overdose
and other adverse events were
roughly equal in the two study
groups, the researchers said.
There were five fatal overdoses in the study—two in patients in the Vivitrol group and
three in the Suboxone group.
BUSINESS WATCH
BONANZA CREEK ENERGY
TJX
SandRidge Near Pact Same-Store Sales
For Oil-and-Gas Firm Retreat in Rare Miss
SandRidge Energy Inc. is
nearing an agreement to buy
Bonanza Creek Energy Inc. for
about $750 million, according to
people familiar with the matter.
A cash-and-stock deal between the oil and gas producers
could be announced Wednesday,
the people said.
Bonanza Creek and SandRidge were among the largest of
more than 120 North American oil-and-gas producers bankrupted in recent years by plunging oil prices.
Their expected agreement
comes amid a gradual rebound
in oil prices and could be a sign
that more energy companies
with adjacent operations will
seek mergers yielding economies
of scale.
—Dana Mattioli
and Ryan Dezember
TJX Cos., which operates TJ
Maxx, Marshalls and HomeGoods stores, didn’t increase its
same-store sales for the first
time since 2009, a rare miss for
a company that has avoided
many of the problems weighing
down the retail sector.
TJX blamed hurricanes and
warmer-than-expected weather
for the same-store sales decline in
its biggest unit, which includes TJ
Maxx, and flat growth overall. A
year earlier, the metric grew by 5%.
Earnings were in line with analysts’ expectations. For the third
quarter, TJX reported a profit of
$641 million, or $1 a share, up
from $549.8 million, or 83 cents,
a year earlier. Revenue rose 7%
to $8.76 billion. Analysts surveyed by Thomson Reuters had
expected revenue of $8.86 billion.
—Cara Lombardo
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Notice of Redemption of
Banco Central de la República Dominicana
Collateralized Discount Bonds Due 2024
ISIN: XS0052684601
In accordance with the provisions of the Fiscal Agency Agreement dated
August 30, 1994, the Issuer has elected to redeem and pay in full the
remaining outstanding principal in the amount of US$4,461,000.00 together
with all interest due in the amount of US$51,301.50 for a total final amount
of US$4,512,301.50 on November 30, 2017.
Citibank Agency & Trust 15th of November, 2017
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THE WALL STREET JOURNAL.
B8 | Wednesday, November 15, 2017
THE PROPERTY REPORT
Malls Pursue Lesser-Known Stores
Idea is to feature
young retailers that
began online and built
millennial followings
SL GREEN REALTY
Allianz to Buy Stake
In Times Square Site
SL Green Realty Corp. agreed
to sell a 43% stake in a Times
Square office tower to Allianz
Real Estate in a deal that values
the 1.86 million square foot
tower at $1.95 billion, the companies said.
The real-estate investment division of Allianz Group, of Germany, is purchasing the stake in
1515 Broadway, home to the
headquarters of media giant Viacom Inc. as well as the Minskoff
Theater on the ground level.
SL Green will realize cash proceeds of about $416 million,
which it will use “for other investment opportunities going
forward,” according to Isaac Zion,
the real-estate investment
trust’s co-chief investment officer.
—Peter Grant
INDOCHINO
BY ESTHER FUNG
MALL REITS
Indochino’s store at the Tysons Galleria mall in Virginia. Malls are seeking retailers that appeal to web-savvy customers.
how to market in this new
era.”
In the past, a startup without a big portfolio of physical
stores could hardly get space
in class-A malls. Landlords
had doubts about their longevity and their ability to operate
stores successfully.
“They would never put you
in a Century City or Short
Hills mall,” said Corey Bialow,
chief executive at Bialow Real
Estate LLC, a firm that represents retail tenants. “Mall developers are now very aggressive in enticing online
retailers with favorable rent
deals.”
The risk for landlords in
embracing younger retailers is
that their tenants have shorter
track records and might peter
out. Clothing retailers Boston
Proper and Nasty Gal Inc., for
example, opened physical
stores but eventually closed
them after a few years.
But analysts think betting
on upstarts is a risk worth
taking at a time when the retail industry is being reshaped
by online shopping and changing consumer preferences.
“If you don’t do that today,
you’re not innovative and I
think your real estate actually
has intrinsically lost value,”
said Anthony Buono, executive
managing director of retail
services at CBRE Group, a
real-estate consultancy. “A lot
of increase in value in real estate is because of the newest
and most interesting, most
unique brands that have been
formed in food and beverage,
in digital, in women’s ready to
wear, in men’s ready to wear,
in other forms of entertainment uses,” Mr. Buono added.
The volume of physical
stores occupied by retailers
that started online stood at
140,209 square feet this year
through the end of October, up
from 15,435 square feet in
2012, according to real-estate
data company CoStar Group,
which tracked 22 online retailers that have stores in the
country’s top 300 enclosed
malls and lifestyle centers.
While this is a growing fraction of the overall square footage of retail space, it is still
small, representing just 0.05%
of the occupied rentable building area of these malls.
The leases tend to be at
least one year and don’t include occupants of pop-up
stores that are typically dedicated to a regular rotation of
new retailers.
Not all landlords are benefiting equally from online retailers’ expansion from clicks
to bricks. These new tenants
are picky over where to open a
store and prefer to be in markets where they already have
online customers and where
there are potential new customers. They usually stick
with class-A malls in areas
with large populations and
higher incomes.
“We look at each region
and we don’t have a mandate
to be mall-specific,” said Drew
Green, chief executive officer
of Indochino, a Vancouver,
British Columbia-based retailer of custom-made suits.
The company recently opened
its 18th showroom in Seattle
and plans to open 18-20 more
in the U.S. next year. It has
stores in malls such as Tysons
Galleria in McLean, Va., and
King of Prussia Mall in Pennsylvania as well as street-front
locations in New York, San
Francisco and Boston.
“We definitely reject more
[offers of space] than we approve,” said Mr. Green, adding
that Indochino is profitable
and its stores break even in
six to 12 months.
Some emerging retailers
that started online, as well as
older retailers, said that having a physical store minimizes
costs of shipping and returns.
Short Sellers Had
A Very Bad Week
Short sellers of mall operators
have gotten pounded over the
past week or so as expectations
of corporate takeouts and
heightened activist investor interest in landlords of Class A
malls drives up share prices.
Short sellers of six of the
seven U.S. mall REITs suffered
declines in their positions of
$280 million from Nov. 4 to
Monday, according to data from
financial-analytics firm S3 Partners. On Nov. 3, Macerich Co. , a
Santa Monica, Calif.-based mall
REIT, announced changes to
severance pay for senior executives in the event of a change in
control of the company. In the
past week, speculation that
Brookfield Property Partners
could make an offer for Chicagobased mall REIT GGP Inc. and
news that activist investor Daniel Loeb’s hedge fund Third Point
had acquired a 1.2% stake in
Macerich fueled gains in A-mall
REITs.
—Esther Fung
TASOS KATOPODIS/GETTY IMAGES
Landlords of top U.S. malls
used to rent most of their
space to the biggest national
retailers, which boasted the
best credit and the most desirable selection of goods.
Now they are looking beyond big chains and toward
lesser-known retailers and
startups that started online
but have amassed customers
and brand recognition.
The reason: Such retailers
tend to offer novel products
that resonate with web-savvy
customers, particularly millennials, a massive group of potential customers landlords
are eager to cultivate.
Century City, a recently
opened 1.3 million-square-foot
open-air mall in west Los Angeles, has a larger-than-average number of tenants that
started out as e-commerce retailers. Candy boutique Sugarfina, clothing retailers Bonobos—now a unit of Wal-Mart
Stores Inc.—and Untuckit,
eyeglass
retailer
Warby
Parker and Amazon Books all
have opened stores in the center, which had been renovated
by Westfield Corp.
Some of these stores are
showrooms and don’t carry inventory so customers will
have their purchases delivered
to them or they could pick up
their purchases at the store
later. Such stores take up less
square footage.
“The nature of retail is
changing dramatically, but
consumer desire for new and
unique products is still very
strong,” said Peter Huddle, executive vice president of development
at
Westfield.
“Many of these digital brands
are ahead of the curve when it
comes to understanding what
is driving consumer sales and
PLOTS &
PLOYS
Shoppers visit Chicago’s Water Tower Place on Black Friday, typically the year’s busiest day for stores.
Class-A Sites Draw Buyers
BY ESTHER FUNG
“Market knowledge is where it starts.
I’ve come to rely on their insight to make
the best decisions for our company.”
– FR EDER ICK SHINN, R EA L ESTATE M A NAGER
MITSUBISHI INTERNATIONAL CORPORATION
EXPERIENCE EXTRAORDINARY
transwestern.com
Mall operators are in the
bargain bin, and some big-time
investors are picking them over.
Brookfield Property Partners LP’s $14.8 billion proposal to acquire the shares of
Chicago-based GGP Inc. that it
doesn’t already own is fueling
expectations that other operators of so-called Class A malls
are becoming acquisition targets—or will face pressure
from their investors to carve
up their best assets for sale.
Shares of A-mall real-estate
investment trusts Taubman
Centers Inc., Macerich Co. and
GGP all have risen between
14% and 24% since the start of
November after having underperformed the broader REIT
market since August 2016.
“Two weeks ago everyone
hated malls—‘the mall is dead.’
But now the mall is alive,” said
Alexander Goldfarb, managing
director at investment bank
Sandler O’Neill & Partners.
The offer by Brookfield,
which already owns 34.4% of
GGP, has been anticipated
since another Brookfield affiliate acquired mall owner Rouse
Properties in 2016 and took it
private. There also are hopes
that Brookfield will sweeten
its current $23 per share offer
for GGP. Shares of GGP rose to
as much as $23.97 Monday on
news of the unsolicited bid.
“We’re pretty disappointed
in the offer price,” said Matthew Werner, managing director at Chilton Capital Management LLC, whose mutual fund
has invested in shares of GGP
Bargain Bin
Malls and regional shopping centers are lagging behind
the other major commercial property categories.
Total returns
10%
8
6
4
Apartments
2
Industrial
Equity REITs
0
–2
Office
–4
Regional malls
Shopping
centers
–6
–8
–10
J
F
M
A
M
J
J
Source: Green Street Advisors
and had been gradually increasing its holdings of the
mall REIT in the past year.
“Hopefully this is the beginning of the negotiations. If it
is the final offer this would be
a negative for mall REITs.”
As recently as Nov. 2,
Brookfield Chief Financial Officer Bryan Kenneth Davis said
in an earnings call the company valued GGP at about $30
a share, up from about $29 in
the second quarter because of
a pickup in its earnings.
Shares of mall REIT Macerich Co. also have shot up in
the past week, on expectations
of activism or a potential deal
after its board of directors on
Nov. 3 approved an increase in
severance pay for senior executives if there is a change in
control of the company.
A
S
O
THE WALL STREET JOURNAL.
Those expectations were
further fueled after hedge
fund Third Point, run by billionaire Dan Loeb, on Thursday disclosed it had a stake of
1.73 million shares, or 1.2% of
the Santa Monica, Calif.-based
REIT as of Sept. 30. Macerich
didn’t respond to requests to
comment and Third Point declined to comment.
Hedge fund Elliott Management has also acquired a stake
in Bloomfield Hills, Mich.-based
Taubman Centers and has
been in talks with company executives, according to a person
familiar with the matter. Elliott
is known as an activist investment firm that often buys
stakes in companies and agitates for changes, including
possible asset sales. Taubman
Centers declined to comment.
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.
Wednesday, November 15, 2017 | B9
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THE WALL STREET JOURNAL.
B10 | Wednesday, November 15, 2017
ADVERTISEMENT
REITS: Real Estate Investment Trusts
To advertise: 800-366-3975 or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | B11
ADVERTISEMENT
REITS: Real Estate Investment Trusts
To advertise: 800-366-3975 or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
B12 | Wednesday, November 15, 2017
ADVERTISEMENT
REITS: Real Estate Investment Trusts
To advertise: 800-366-3975 or WSJ.com/classifieds
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | B13
NY
THE PROPERTY REPORT
ADVERTISEMENT
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
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Stuyvesant Town-Peter Cooper Village, an 11,200-unit complex in Manhattan, will display Rentlogic’s grade in its leasing office.
Startup Grades Landlords
BY LAURA KUSISTO
For most New York residents, it is easier to find out
whether the local hamburger
joint has a mouse problem
than if an apartment they are
about to rent has no heat in
the winter or a cockroach infestation.
Rentlogic, a New Yorkbased startup, aims to create
more transparency by assigning letter grades to apartment
buildings based on housingcode violations data, which
track issues such as climate
control, mold, bed bugs and
vermin infestations.
In its biggest deal yet,
Rentlogic recently signed an
agreement with Stuyvesant
Town-Peter Cooper Village,
the 11,200-unit complex in
Manhattan that is owned by
Blackstone Group LP, to display the complex’s rating in its
leasing office.
Rentlogic rates all apartment buildings in the city using publicly available data
supplemented by in-person inspections, and assigns them a
grade of A through F.
Renters can download a
browser extension that allows
them to see buildings’ ratings
when they are searching for
apartments online on most
real-estate websites.
Landlords have the option
to purchase a plaque from
Rentlogic to display on their
property or in their leasing office, showing prospective tenants they have received a high
grade. The price of the
plaques ranges from $1,000 to
$10,000 a year.
The model is similar to the
one used in the bond-ratings
industry, in which bond issuers pay one of the ratings
firms to grade their debt.
Because Rentlogic makes
money only off landlords that
receive a high grade, there
could be incentive to produce
more landlord-friendly results.
Yale Fox, Rentlogic’s founder,
said he recently hired a mathematician to audit the com-
pany’s algorithm. He also
plans to install an independent
21-person board made of tenant advocates, real-estate executive and city officials.
Rentlogic operates only in
New York City, but Mr. Fox
said he plans to expand over
the next two years to most
major North American cities.
Mr. Fox said he has received
funding from friends, family
and venture capitalists and is
trying to raise an additional
$3.5 million.
Mr. Fox founded the company in 2013 based on his experience working as a landlord
of a rental property in Toronto
and with a problem landlord
in New York City.
He found traditional forms
of tenant advocacy had limited
persuasive power because they
had minimal effect on landlords’ bottom lines.
“It ends up being a rent
strike or a protest, which
works really well sometimes
and not other times. It’s a lot
of people yelling back and
forth. If you’re a billionaire
landlord or a slumlord, you
don’t really care,” he said.
Landlord groups say they
have concerns about relying
on code violations, which
track not only big problems,
but also minor ones such as a
missing light switch cover or
an absent sign.
Mr. Fox said the results are
weighted based on the severity of the violation.
When Blackstone purchased
Stuyvesant Town two years
ago, the property had recently
improved from a “C” grade to
a “B” grade.
It had 122 violations over a
2½-year period under the previous owner.
Since Blackstone bought the
property, it has accumulated
37 violations and now has an
“A” grade, according to Rentlogic.
Rick Hayduk, chief executive of StuyTown Property
Services, said the rating is an
“independent validation of our
efforts.”
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THE WALL STREET JOURNAL.
B14 | Wednesday, November 15, 2017
NEW HIGHS AND LOWS
WSJ.com/newhighs
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Stock
Tuesday, November 14, 2017
52-Wk %
Sym Hi/Lo Chg Stock
Stock
NYSE highs - 113
AberdeenGrChinaFd GCH
Accenture
ACN
AlliantEnergy LNT
Ameren
AEE
AEP
AEP
AmerWaterWorks AWK
Amphenol
APH
AquaAmerica WTR
AristaNetworks ANET
AtmosEnergy ATO
Avangrid
AGR
BCE
BCE
BeazerHomes BZH
BlkRkMuniIncm BBF
CBRE Group
CBG
CMS Energy
CMS
CantelMedical CMD
CatchMarkTimber CTT
ChinaGreenAg CGA
Coca-Cola
KO
CommunityHlthcr CHCT
ConEd
ED
Cott
COT
DCT Industrial DCT
DTE Energy
DTE
DaqoNewEnergy DQ
12.51 -0.1
145.50 0.7
45.23 2.0
64.70 1.8
77.44 1.7
90.76 1.3
89.16 0.6
37.12 1.8
228.86 0.9
90.78 1.1
52.65 2.6
48.46 0.5
21.71 3.4
15.80 0.4
42.23
...
50.71 1.9
101.48 1.6
13.27 1.2
1.52 8.4
47.48 1.5
29.16 3.7
89.01 1.5
16.53 1.0
60.98
...
115.70 1.2
44.49 6.7
52-Wk %
Sym Hi/Lo Chg Stock
DominionEner D
DriveShackPfdB DSpB
DukeEnergy
DUK
ElPasoElectric EE
EquityLife
ELS
EvercoreA
EVR
EversourceEner ES
Exelon
EXC
FidNatlFin
FNF
FirstIndRlty
FR
FirstEnergy
FE
GTT Comm
GTT
Gallagher
AJG
GlobusMedical GMED
GreatPlainsEner GXP
HanoverIns
THG
HawaiianElec HE
HollyFrontier
HFC
HomeDepot
HD
Honeywell
HON
DR Horton
DHI
IDACORP
IDA
IONGeophysical IO
Insperity
NSP
InterXion
INXN
IronMountain IRM
JanusHenderson JHG
JonesLang
JLL
KB Home
KBH
83.04
26.01
91.14
59.85
90.86
84.65
65.85
42.46
40.12
32.30
35.06
37.60
65.12
38.04
34.03
107.18
37.37
43.27
168.14
147.60
47.91
98.04
15.30
108.45
56.91
41.18
37.39
151.13
28.69
1.2
0.2
1.3
2.8
-0.1
0.7
1.6
1.5
2.9
-0.1
2.5
0.5
1.8
1.3
1.0
0.2
1.4
2.4
1.6
0.4
1.2
2.0
1.7
-0.6
0.2
...
-0.6
1.3
0.7
52-Wk %
Sym Hi/Lo Chg
LambWeston LW
LifeStorage
LSI
LiveNationEnt LYV
MI Homes
MHO
MagnaChipSem MX
ManchesterUnited MANU
Marcus&Millichap MMI
MiXTelematics MIXT
NRG Energy
NRG
NRG Yield C
NYLD
NRG Yield A
NYLD.A
NTTDoCoMo DCM
NamTaiProperty NTP
Navistar pfD NAVpD
NewIrelandFundRt IRLr
NewJerseyRscs NJR
NewRelic
NEWR
NexPointResidentl NXRT
NextEraEnergy NEE
NextEraEnergyUn NEEpQ
NextEraEnergyUn NEEpR
NorthstarRltyEur NRE
OaktreeSpecNts24 OSLE
Oppenheimer A OPY
OwensCorning OC
PBF Energy
PBF
PGT Innovations PGTI
PNM Resources PNM
PhoenixNewMedia FENG
54.01
89.63
46.33
34.42
13.35
19.35
31.37
11.52
29.06
20.15
19.91
25.06
12.73
18.00
0.31
45.08
54.97
29.21
158.55
71.02
57.62
14.40
25.26
24.90
83.44
32.65
15.38
44.90
6.87
Fund
Data provided by
Tuesday, November 14, 2017
Net YTD
A
NAV Chg %Ret Fund
E
American Century Inv
44.90 -0.21
Ultra
American Funds Cl A
31.76 -0.08
AmcpA p
AMutlA p 41.09 -0.08
27.41 -0.03
BalA p
12.91 +0.01
BondA p
62.75 +0.02
CapIBA p
CapWGrA 52.13 -0.09
56.77 -0.06
EupacA p
63.34 -0.16
FdInvA p
51.38 -0.16
GwthA p
10.35 -0.02
HI TrA p
40.98 -0.15
ICAA p
23.32 -0.03
IncoA p
44.85 -0.03
N PerA p
47.62 -0.04
NEcoA p
NwWrldA 66.07 -0.29
55.96 -0.09
SmCpA p
13.02 -0.01
TxExA p
45.22 -0.10
WshA p
B
Baird Funds
AggBdInst 10.88 +0.01
CorBdInst 11.23 +0.01
BlackRock Funds A
GlblAlloc p 20.20 -0.02
BlackRock Funds Inst
22.93 -0.05
EqtyDivd
20.33 -0.02
GlblAlloc
7.76 -0.02
HiYldBd
StratIncOpptyIns 9.91 -0.02
Bridge Builder Trust
NA
...
CoreBond
D
Dimensional Fds
...
5GlbFxdInc 11.01
EmgMktVa 29.83 -0.20
EmMktCorEq 22.23 -0.10
...
IntlCoreEq 14.09
19.81 -0.05
IntlVal
21.21 +0.02
IntSmCo
23.06 -0.02
IntSmVa
US CoreEq1 21.94 -0.04
US CoreEq2 20.78 -0.05
35.65 -0.05
US Small
US SmCpVal 37.85 -0.11
US TgdVal 24.63 -0.11
38.74 -0.14
USLgVa
Dodge & Cox
Balanced 108.14 -0.32
13.70 -0.09
GblStock
13.81 +0.01
Income
45.60 -0.24
Intl Stk
199.24 -0.90
Stock
DoubleLine Funds
NA
...
TotRetBdI
Net YTD
NAV Chg %Ret
Fed TF A p 11.97 -0.01 3.2
NA
... NA
IncomeA p
RisDv A p 60.60 -0.16 16.1
Edgewood Growth Instituti
28.7 EdgewoodGrInst 29.54 +0.01 33.0 FrankTemp/Franklin C
NA
...
Income C t
18.4
FrankTemp/Temp A
13.2
NA
...
GlBond
A
p
Federated Instl
12.2
NA
...
StraValDivIS 6.42 +0.02 11.8 Growth A p
3.1
FrankTemp/Temp Adv
Fidelity
11.6
NA
...
GlBondAdv
p
500IdxInst 90.36 -0.19 17.2
20.8
500IdxInstPrem 90.36 -0.19 17.2
28.5
500IdxPrem 90.35 -0.20 17.2
18.5
ExtMktIdxPrem r 62.02 -0.16 13.0 Harbor Funds
22.2
IntlIdxPrem r 42.91 +0.04 21.6 CapApInst 76.00 -0.21
5.7
69.20 +0.03
SAIUSLgCpIndxFd 13.85 -0.03 17.1 IntlInst r
14.4
Harding Loevner
10.0 TMktIdxF r 74.81 -0.16 16.4
NA
...
IntlEq
26.9 TMktIdxPrem 74.79 -0.17 16.4
32.5 USBdIdxInstPrem 11.58 +0.01 3.0
28.4 Fidelity Advisor I
Invesco Funds A
21.7 NwInsghtI 33.32 -0.07 24.8
11.20 -0.03
EqIncA
4.9 Fidelity Freedom
16.66 -0.03 12.9
14.7 FF2020
14.42 -0.02 13.9
FF2025
18.05 -0.03 16.2 John Hancock Class 1
FF2030
15.91 -0.01
Freedom2020 K 16.67 -0.02 NS LSBalncd
17.06 -0.03
LSGwth
3.8 Freedom2025 K 14.42 -0.02 NS
John
Hancock
Instl
4.1 Freedom2030 K 18.05 -0.04 NS
Freedom2035 K 15.14 -0.03 NS DispValMCI 23.92 -0.03
JPMorgan Funds
11.1 Freedom2040 K 10.64 -0.02 NS
MdCpVal L 39.73 +0.05
Fidelity Invest
JPMorgan R Class
23.61
-0.06
13.8
Balanc
12.3
11.63 +0.01
CoreBond
87.71
-0.29
32.9
BluCh
11.4
126.67 -0.21 29.5
6.7 Contra
126.68
-0.20
29.6
ContraK
3.8
10.21 -0.03 9.8 Lazard Instl
CpInc r
41.10 +0.02 23.4 EmgMktEq 19.40 -0.10
NA DivIntl
182.83 -0.51 33.7 Loomis Sayles Fds
GroCo
14.12 -0.02
GrowCoK 182.79 -0.51 33.8 LSBondI
7.91
... 3.4 Lord Abbett A
InvGB
11.27 +0.01 3.9 ShtDurIncmA p 4.26 -0.01
2.1 InvGrBd
52.50 -0.06 14.6 Lord Abbett F
26.3 LowP r
...
52.46 -0.06 14.7 ShtDurIncm 4.26
LowPriStkK
r
29.9
105.68 -0.49 22.5
23.0 MagIn
108.70
-0.44
36.4
OTC
20.9
23.11 -0.05 15.8 Metropolitan West
24.0 Puritn
10.65 +0.01
21.9 SrsEmrgMkt 21.30 -0.15 35.7 TotRetBd
10.65 +0.01
15.2 SrsGroCoRetail 17.95 -0.04 34.4 TotRetBdI
10.02 +0.01
TRBdPlan
16.17
...
26.3
SrsIntlGrw
12.9
10.76 +0.02 17.5 MFS Funds Class I
6.1 SrsIntlVal
40.34 +0.01
1.7 TotalBond 10.65 +0.01 3.7 ValueI
MFS Funds Instl
3.4 Fidelity Selects
25.32 +0.08
210.66 -3.66 21.0 IntlEq
12.0 Biotech r
Mutual Series
First Eagle Funds
NA
...
GlbDiscA
60.30
-0.10
11.1
GlbA
8.1
15.0 FPA Funds
34.72
... 7.7
3.9 FPACres
Oakmark Funds Invest
19.7 FrankTemp/Frank Adv
NA
... NA EqtyInc r
33.77 -0.09
11.2 IncomeAdv
FrankTemp/Franklin A
84.27 -0.29
Oakmark
7.48
... 5.6 OakmrkInt
NA
...
NA CA TF A p
F
Net YTD
NAV Chg %Ret Fund
18.73
6.61
9.91
16.84
26.12
16.15
19.62
1.85
16.15
2.17
9.71
3.02
47.53
20.15
22.15
12.56
56.69
9.14
14.31
8.35
7.43
12.54
10.53
9.66
0.41
6.98
9.02
4.09
1.96
6.99
26.15
10.33
16.93
8.83
5.19
NA
NA
NA
NA
H
34.2
18.5
NA
I
7.2
J
12.7
16.1
11.4
9.1
3.5
L
22.2
6.5
2.0
2.3
M
2.7
3.0
3.1
12.6
25.0
NA
O
11.0
16.3
NA
-8.1
-2.9
-5.9
-2.4
-1.9
-0.4
-0.9
-0.5
-0.1
-6.1
-0.7
...
-2.5
-1.0
-0.7
-1.8
-2.2
-1.9
-6.1
-1.2
-2.0
-2.3
-1.2
-6.9
-4.4
-1.3
-2.0
-0.9
-3.9
-2.8
...
-2.1
-5.0
-1.6
-3.3
Net YTD
NAV Chg %Ret
Old Westbury Fds
MuLTAdml 11.68 -0.01
14.84 -0.02 15.7 MuLtdAdml 10.94 -0.01
LrgCpStr
Oppenheimer Y
MuShtAdml 15.76 -0.01
NA
... NA PrmcpAdml r135.35 -0.18
DevMktY
42.80 +0.24 23.4 REITAdml r 120.68 -0.23
IntGrowY
SmCapAdml 68.05 -0.19
...
STBondAdml 10.41
...
STIGradeAdml 10.66
Parnassus Fds
10.75
+0.01
TotBdAdml
44.16 -0.09 13.3
ParnEqFd
TotIntBdIdxAdm 21.92 +0.01
PIMCO Fds Instl
NA
... NA TotIntlAdmIdx r 29.75 -0.04
AllAsset
10.26 +0.01 4.7 TotStAdml 64.42 -0.14
TotRt
14.08 -0.01
TxMIn r
PIMCO Funds A
39.56 -0.09
NA
... NA ValAdml
IncomeFd
WdsrllAdml 68.40 -0.32
PIMCO Funds D
NA
... NA WellsIAdml 65.17 +0.02
IncomeFd
WelltnAdml 73.51 -0.08
PIMCO Funds Instl
NA
... NA WndsrAdml 78.75 -0.19
IncomeFd
VANGUARD FDS
PIMCO Funds P
26.37 -0.04
NA
... NA DivdGro
IncomeP
Price Funds
HlthCare r 208.21 -0.68
97.16 -0.08 33.8 INSTTRF2020 22.47 -0.01
BlChip
29.67 -0.02 13.3 INSTTRF2025 22.73 -0.02
CapApp
34.64 -0.07 11.6 INSTTRF2030 22.91 -0.03
EqInc
69.37 -0.15 16.9 INSTTRF2035 23.10 -0.04
EqIndex
70.13 -0.10 31.7 INSTTRF2040 23.29 -0.04
Growth
73.11 -0.62 23.7 INSTTRF2045 23.43 -0.04
HelSci
39.55 -0.04 35.3 IntlVal
InstlCapG
39.12 -0.04
19.12 -0.01 25.0 LifeGro
IntlStk
33.03 -0.04
15.07 -0.01 17.6 LifeMod
IntlValEq
26.85 -0.02
91.57 +0.03 21.5 PrmcpCor
MCapGro
26.73 -0.05
31.32 -0.07 7.8 SelValu r
MCapVal
32.97 -0.05
54.76 -0.10 26.4 STAR
N Horiz
27.07 -0.03
9.48 +0.01 3.5 STIGrade
N Inc
10.66
...
OverS SF r 11.26 -0.01 24.1 TgtRe2015 15.89
...
23.15 -0.01 13.4 TgtRe2020 31.52 -0.02
R2020
17.85 -0.01 15.2 TgtRe2025 18.47 -0.02
R2025
26.30 -0.02 16.7 TgtRe2030 33.36 -0.04
R2030
19.22 -0.02 18.0 TgtRe2035 20.49 -0.03
R2035
27.62 -0.03 19.0 TgtRe2040 35.27 -0.06
R2040
38.70 -0.05 15.0 TgtRe2045 22.15 -0.04
Value
PRIMECAP Odyssey Fds
TgtRe2050 35.64 -0.06
35.99 -0.02 25.7 TgtRetInc
Growth r
13.55 -0.01
Principal Investors
...
TotIntBdIxInv 10.96
DivIntlInst 13.81 -0.01 25.5 WellsI
26.90 +0.01
Prudential Cl Z & I
42.56 -0.05
Welltn
14.49 +0.01 5.5 WndsrII
TRBdZ
38.54 -0.18
VANGUARD INDEX FDS
238.55 -0.51
500
Schwab Funds
ExtndIstPl 201.04 -0.50
40.33 -0.09 17.2 SmValAdml 54.67 -0.13
S&P Sel
10.71 +0.01
TotBd2
17.78 -0.03
TotIntl
64.39 -0.14
TotSt
TIAA/CREF Funds
19.31 -0.04 16.4 VANGUARD INSTL FDS
EqIdxInst
34.02 -0.03
IntlEqIdxInst 20.13 -0.01 21.6 BalInst
DevMktsIndInst 14.10 -0.01
Tweedy Browne Fds
28.20 -0.07 12.6 DevMktsInxInst 22.04 -0.02
GblValue
81.47 -0.20
ExtndInst
GrwthInst 70.80 -0.15
10.51 +0.01
InPrSeIn
VANGUARD ADMIRAL
235.39 -0.50
500Adml 238.58 -0.52 17.2 InstIdx
235.41 -0.51
34.01 -0.03 11.0 InstPlus
BalAdml
CAITAdml 11.80 -0.01 4.7 InstTStPlus 57.79 -0.12
CapOpAdml r154.03 -0.40 24.0 MidCpInst 40.86 +0.02
36.82 -0.21 26.1 MidCpIstPl 201.51 +0.10
EMAdmr
EqIncAdml 76.16 -0.06 13.6 SmCapInst 68.05 -0.19
...
ExtndAdml 81.47 -0.20 13.0 STIGradeInst 10.66
10.75 +0.01
... 1.9 TotBdInst
GNMAAdml 10.49
GrwthAdml 70.80 -0.14 24.6 TotBdInst2 10.71 +0.01
HlthCareAdml r 87.84 -0.29 15.9 TotBdInstPl 10.75 +0.01
HYCorAdml r 5.89 -0.01 5.9 TotIntBdIdxInst 32.89 +0.01
25.79 +0.03 2.1 TotIntlInstIdx r118.96 -0.18
InfProAd
IntlGrAdml 93.98 -0.17 39.6 TotItlInstPlId r118.98 -0.19
64.43 -0.14
... 3.6 TotStInst
ITBondAdml 11.38
39.56 -0.09
ITIGradeAdml 9.78 +0.01 4.0 ValueInst
LTGradeAdml 10.56 +0.03 8.8
MidCpAdml 184.96 +0.10 14.7
... 7.2 Western Asset
MuHYAdml 11.42
...
MuIntAdml 14.16 -0.01 4.5 CorePlusBdI NA
P
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Net YTD
NAV Chg %Ret Fund
2.1
1.8
1.5
0.4
0.2
2.1
0.6
-0.1
...
0.4
0.2
1.4
-0.6
0.3
0.5
1.3
2.2
0.9
0.9
1.2
0.6
-2.4
4.2
1.0
0.5
3.0
1.7
-0.7
2.0
NYSE lows - 129
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
Fund
91.76
49.81
22.71
51.54
67.25
51.73
31.88
16.90
53.71
106.38
122.62
70.56
40.50
93.85
93.83
17.96
47.10
55.00
25.93
28.17
76.62
903.75
4.88
109.71
122.63
9.08
69.58
27.79
51.85
52-Wk %
Sym Hi/Lo Chg Stock
AlticeUSA
ATUS
AmberRoad
AMBR
AmericanRenal ARA
AnteroMidstream AMGP
AnteroMidstream AM
ApolloSrFRFd AFT
Ardagh
ARD
AvonProducts AVP
BT Group
BT
BellatrixExplor BXE
BlkRk2022GlbIncm BGIO
BlueApron
APRN
BuckeyePtrs
BPL
CBL AssocPfdE CBLpE
CBL AssocPfdD CBLpD
CNX Coal
CNXC
CardinalHealth CAH
CenterCoastMLP CEN
CenturyLink
CTL
ChannelAdvisor ECOM
ClearBridgeAmEn CBA
ClearBridgeEnMLPFd CEM
ClearbridgeEngyMLP EMO
ClipperRealty CLPR
CobaltIntlEner CIE
CoeurMining
CDE
C&SMLPIn&EnerOpp MIE
CommunityHlthSys CYH
EngGr-Cmg
CIG
COPEL
ELP
Culp
CULP
CushingTotRetFd SRV
43.25 -0.2 DieboldNixdorf DBD
AZZ
8.40 -8.4 Duff&PhelpsUtil DUC
AGRO
AGNpA 608.74 -1.3 Duff&PhelpsSelEn DSE
PinnacleWest PNW
PortlandGenElec POR
PrefApartment APTS
Progressive
PGR
Prologis
PLD
PublicServiceEnt PEG
PulteGroup
PHM
PureStorage
PSTG
RobertHalf
RHI
Salesforce.com CRM
SempraEnergy SRE
SiteOneLandscape SITE
Square
SQ
SunComms
SUI
TE Connectivity TEL
TRI Pointe
TPH
Toll Bros
TOL
TransUnion
TRU
TsakosEnergyPfdD TNPpD
TwoHarborsPfdA TWOpA
TysonFoods
TSN
US BancorpPfdA USBpA
Valhi
VHI
VarianMed
VAR
VMware
VMW
Vonage
VG
WEC Energy WEC
WW Ent
WWE
XcelEnergy
XEL
1.2
...
2.7
0.6
-1.2
0.5
2.6
1.9
0.5
1.5
1.0
0.3
3.3
2.9
3.7
1.6
1.1
6.7
1.0
0.9
0.4
0.5
0.3
0.4
0.5
4.1
2.7 AZZ
2.4 Adecoagro
17.1 AllerganPfdA
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
52-Wk %
Sym Hi/Lo Chg Stock
S
T
V
5.9
2.4
1.2
24.4
6.1
11.2
1.2
2.1
3.2
2.0
23.1
16.4
22.3
11.2
10.8
7.9
11.1
14.7
14.3
15.8
11.6
13.0
14.3
15.5
16.8
17.3
23.2
15.6
12.3
20.5
14.6
15.1
2.0
9.5
11.5
13.0
14.2
15.5
16.7
17.3
17.3
7.0
2.0
7.9
11.0
10.7
17.1
13.0
6.5
3.1
23.0
16.3
11.0
22.4
22.4
13.0
24.7
2.2
17.2
17.2
16.4
14.7
14.7
11.2
2.1
3.2
3.1
3.2
2.1
23.2
23.2
16.4
11.2
W
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NA
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
67.95 -1.7
3.25 -6.9
14.04 -0.6
14.01 -0.4
6.33 -0.5
1.15 ...
34.81 -2.2
15.08 -1.0
10.27 3.7
12.95 -2.2
10.30 -8.3
10.86 -1.5
4.48 1.1
13.68 -2.0
11.00 -2.1
12.65 -0.3
9.04 -1.4
0.21 -9.5
15.85 -0.1
17.46 -5.9
21.30 -3.6
28.63 -4.5
34.86 -0.3
5.70 -2.9
8.14 -3.0
19.42 -2.4
8.27 -0.5
3.63 -4.6
11.35 0.1
4.28 -0.5
35.62 -0.3
4.43 -2.8
14.10 -0.1
9.28 -3.3
14.69 -2.3
12.52 -2.2
8.20 -4.8
17.27 -0.2
36.00 0.8
19.85 -5.5
4.14 -1.9
20.80 -1.5
4.78 -0.8
4.12 0.3
14.61 -7.0
16.40 -2.1
64.84 -1.1
0.80 -22.8
10.36 -3.6
58.80 ...
6.86 -27.7
27.90 -1.5
15.75 -3.4
29.55 -4.7
15.16 -5.0
8.05 -1.0
10.10 -2.2
10.77 -3.4
10.57 -1.2
9.86 -0.2
6.41 -0.6
10.92 ...
12.75 -1.1
10.20 -1.0
7.32 -1.7
11.45 -0.2
22.65 -4.8
9.63 -3.5
11.66 -29.9
7.47 -0.5
8.56 -3.3
14.49 -1.1
9.83 -2.1
1.18 -1.7
39.78 0.1
23.70 -0.6
18.65 -2.8
16.31 -0.5
66.44 -4.0
24.51 -0.6
8.01 -2.9
15.98 -2.0
17.03 -2.6
7.25 -3.6
56.60 -1.1
10.41 0.3
35.77 0.3
43.85 -1.2
10.19 -11.6
1.13 -16.8
40.22 -3.8
EQT Midstream EQM
EastmanKodak KODK
EtnVncFR IT
EFT
EtnVncSrFltRte EFR
EtnVncSrIT
EVF
EldoradoGold EGO
Enbridge
ENB
EnLinkMid
ENLC
EntercomCommsWi ETMw
Evertec
EVTC
EvolentHealth EVH
FidcryClymrOppFd FMO
FirstBanCorp FBP
FT MLP&Energy FEI
FT NewOppsMLP FPL
FT SrFR Incm FCT
FT SrFR2022 FIV
GabelliGlbSmRt GGZr
GameStop
GME
GeneralElec
GE
GenesisEnergy GEL
Glaukos
GKOS
GSK
GSK
GS MLPEnergyRen GER
GS MLP IncmOpp GMZ
GrupoTelevisa TV
HancockTxAdvGlb HTY
HeclaMining
HL
InvescoCreditOpps VTA
InvescoSeniorIncm VVR
JohnsonControls JCI
JustEnergy
JE
KayneAnderson KED
KayneAnEnerTRFd KYE
KayneAnMLPInv KYN
KayneAnMidstrEner KMF
KeyEnergySvcs KEG
KinderMorgan KMI
KinderMorganPfdA KMIpA
KnotOffshore KNOP
LendingClub
LC
LomaNegra
LOMA
MFS GvMkTr MGF
MFS Intermd MIN
MRC Global
MRC
MSG Networks MSGN
MacquarieInfr MIC
MechelPfd
MTLp
NOW
DNOW
NationalGrid
NGG
Netshoes
NETS
NewellBrands NWL
NexaResources NEXA
NuSTAREnergy NS
NuSTAR GP
NSH
NuvCreditStrat JQC
NuvEnerMLPTR JMF
NuvFRIncmFd JFR
NuvFR OppFd JRO
NuvHiIncmDec18 JHA
NuvSrIncmFd NSL
PHH
PHH
PPDAI
PPDF
PIMCOCAMuniIII PZC
PIMCO HiIncm PHK
PioneerFR
PHD
PitneyBowesNt43 PBIpB
PitneyBowes PBI
PPlus CZN-1
PIY
RR Donnelley RRD
RangerEnergySvcs RNGR
RedwoodTrust RWT
SalientMidstream SMM
SandRidgeMS SDT
SpectraEnerPtrs SEP
SpiritRealtyPfdA SRCpA
SummitMidstream SMLP
THLCreditSrLoan TSLF
TJX
TJX
TeekayLNG PfdB TGPpB
3D Systems
DDD
TortoiseMLPFund NTG
TortoisePipe&En TTP
TownsquareMedia TSQ
UnitedContinental UAL
WstAstCpLoanFd TLI
WesternGasEquity WGP
WesternGasPtrs WES
WideOpenWest WOW
Willbros
WG
WorthingtonInds WOR
52-Wk %
Sym Hi/Lo Chg Stock
GlbXSuperIncPfd SPFF
GSAccessHYCorpBd GHYB
GuggBS2025HYCpBd BSJP
GuggBS2027CorpBd BSCR
iShiBdsMar18CpxFin IBCC
HancockMultiSC JHSC
JPM US Value JVAL
NuShEnhYd1-5Y NUSA
PwrShSrLoanPtf BKLN
ProShUltTelecom LTL
ProShrUSRlEst SRS
ProShrUSUtil SDP
SchwabSrtTRmUSTrsr SCHO
TeucriumCornFund CORN
VanEckHiIncmInfra YMLI
VangdTelecom VOX
VirtusGlovistaEM EMEM
12.25
49.41
24.58
19.89
24.58
24.87
24.90
24.92
22.99
36.93
28.50
22.35
50.18
16.75
12.74
83.39
24.69
-0.3
-0.3
-0.3
...
-0.1
-0.1
...
-0.1
-0.1
-0.9
0.3
-2.2
...
-1.1
-1.8
-0.7
-0.5
Immucell
ICCC
InfinityPropCas IPCC
Insmed
INSM
Intricon
IIN
Intuit
INTU
iSectorsPostMPT PMPT
JensynAcqn Rt JSYNR
Joint
JYNT
Kingstone
KINS
Kulicke&Soffa KLIC
LimelightNetworks LLNW
LivaNova
LIVN
MicronTech
MU
MonsterBev
MNST
Nathan's
NATH
NatlEnerSvsWt NESRW
OssenInnovation OSN
PinnacleEnt
PNK
PwrShDWA Util PUI
PwrShRuss1000Low USLB
PreformedLine PLPC
Qualys
QLYS
RCI Hospitality RICK
RMR Group
RMR
Radware
RDWR
Remark
MARK
Roku
ROKU
StarBulkNts22 SBLKZ
StarsGroup
TSG
Synopsys
SNPS
TabulaRasaHlth TRHC
TowerSemi
TSEM
USA Tech
USAT
USA Truck
USAK
UTStarcom
UTSI
VascularBiogenics VBLT
VeriSign
VRSN
Vodafone
VOD
Weibo
WB
WestellTech
WSTL
Wingstop
WING
ZAGG
ZAGG
NYSE American highs - 4
83.53 2.1
AINC
NYSE Arca highs - 29 Ashford
2.70 ...
Birks
BGI
CSOPFTSEChinaA50 AFTY
DirexHmbldrBull3 NAIL
DirexUtilBl3X UTSL
FidelityMSCIUtils FUTY
GlbXSciBetaUS SCIU
GuggS&P500EWUtil RYU
GuggInsider
NFO
GuggS&P500EWRlEst EWRE
GuggSolar
TAN
iShU.S.RealEstate IYR
iShU.S.Utilities IDU
iShMSCIHongKong EWH
HancockUtils JHMU
JPM US Dividend JDIV
JPM USQualFactor JQUA
KraneZacksNewChina KFYP
PwrShInvGrdCpBd PFIG
PwrShS&P500HiDiv SPHD
PwrShS&P500LoVol SPLV
PwrShS&P500xRate XRLV
PwrShS&P500Mom SPMO
ProShS&P500xHlth SPXV
ProShrUltraUtil UPW
SPDRS&P1500ValTilt VLU
SPDRS&PHlthCareEqp XHE
SPDR US LC Low Vol LGLV
UtilitiesSelSector XLU
VanEckVietnam VNM
VangdUtilities VPU
18.44
76.50
34.14
36.95
30.27
90.79
61.02
28.67
25.21
83.00
142.28
25.71
29.74
25.11
24.93
44.18
26.70
41.96
47.39
32.82
34.84
53.77
54.08
103.18
64.76
92.26
56.91
16.45
124.94
-0.6
3.0
3.6
1.3
0.2
1.0
0.1
-0.1
1.0
-0.2
1.2
...
1.8
0.4
...
-2.2
...
0.1
0.6
0.1
-0.2
...
2.1
-3.6
-0.1
0.1
1.2
0.1
1.2
NYSE Arca lows - 35
AlerianMLPETF AMLP
ColumbiaDivFixed DIAL
DirexSilverMinBl2 SHNY
ETFMG PrimeJrSilver SILJ
ETRACSMthPay2xLev DVHL
ETRACSMthlyPay2x SMHD
FrankFTSEBrazil FLBR
FrankFTSECanada FLCA
FrankFTSEChina FLCH
FrankFTSEEurHdg FLEH
FrankFTSEFrance FLFR
FrankFTSEJapan FLJP
FrankFTSEJapanHdg FLJH
FrankFTSEMexico FLMX
FrankFTSETaiwan FLTW
GlbX MLP&Energy MLPX
GlbX MLP
MLPA
GlbXSilverMiners SIL
10.15
19.82
8.38
10.30
19.64
16.55
23.37
24.80
25.25
24.46
24.87
25.72
25.67
24.61
25.32
12.59
9.22
30.36
-1.7
-0.2
-1.3
-1.8
-0.4
-1.3
-2.1
-0.6
-1.5
-0.2
-0.2
-0.6
-0.2
-0.5
-0.2
-1.7
-1.8
-0.5
7.42 -2.2
2.25 7.2
TRT
WTT
TrioTech
WirelessTel
NYSE American lows - 15
Amcon
DIT
AsteriasBiotherap AST
BlkRkMD Muni BZM
CRH Medical CRHM
ComstockMining LODE
ContangoO&G MCF
eMagin
EMAN
FT EnerIncome FEN
IMPAC Mortgage IMH
IntlTowerHill
THM
Inuvo
INUV
Network1Techs NTIP
NeubrgBermMLPIncm NML
RegionalHlthProp RHE
UnvlSecInstr
UUU
52-Wk %
Sym Hi/Lo Chg Stock
85.80 -3.2
2.20 -2.1
13.66 -0.5
1.50 -7.6
0.38 -3.2
3.02 -7.2
1.63 3.0
21.54 -2.0
10.67 2.7
0.36 -6.9
0.70 -4.9
2.60 -33.0
8.15 -2.9
0.20 -26.5
1.30 -3.7
Nasdaq highs - 69 Nasdaq lows - 99
AltairEngg
ALTR
AptoseBiosci APTO
AtlanticaYield AY
CMSevenStarAcqnRt CMSSR
CadenceDesign CDNS
CareerEducation CECO
Cavium
CAVM
CboeGlobalMkts CBOE
ChinaCeramics CCCL
ChinaInternet CIFS
ChromaDex
CDXC
Cognex
CGNX
ConcertPharm CNCE
CSX-LinksCrudeOil USOI
EducDev
EDUC
EnphaseEnergy ENPH
Everbridge
EVBG
FirstComSC
FCCO
FiveBelow
FIVE
GRAVITY
GRVY
Garmin
GRMN
GladstoneInvt GAIN
HailiangEduc
HLG
HamiltonLane HLNE
HollysysAuto HOLI
II-VI
IIVI
IPG Photonics IPGP
22.98
2.20
25.99
0.40
44.83
13.22
77.60
116.91
3.60
50.67
5.99
140.94
19.31
27.58
14.10
2.44
29.99
24.50
58.69
80.11
61.28
11.17
40.59
31.72
27.19
47.95
229.65
2.9
-4.4
...
-6.5
0.2
0.5
-0.2
0.7
19.0
2.9
4.8
0.2
0.5
7.3
-1.8
2.2
3.1
0.4
0.6
0.5
0.3
0.9
0.6
1.5
10.6
-0.6
0.7
AMC Networks AMCX
AcadiaHealthcare ACHC
Advaxis
ADXS
AlcentraCapital ABDC
AmCapSeniorFloat ACSF
AmerOutdoor AOBC
AmTrustFinSvcs AFSI
AquaMetals
AQMS
AquinoxPharm AQXP
ArcadiaBiosci RKDA
ArchrockPtrs APLP
Bandwidth
BAND
Biocept
BIOC
BlackRockCapInvt BKCC
BroadwindEnergy BWEN
CHF Solutions CHFS
CM Finance
CMFN
CMSevenStarAcqnRt CMSSR
CTI Ind
CTIB
CapitalaFinNts22 CPTAL
Cenveo
CVO
Chimerix
CMRX
CleanEnerFuels CLNE
CoherusBioSci CHRS
ConsldComm CNSL
Criteo
CRTO
Curis
CRIS
Largest 100 exchange-traded funds, latest session
0.02 -19.4
21.51 3.7
15.23 -4.1
0.82 -1.4
2.32 -2.0
0.53 -6.5
5.32 -34.3
7.13 -5.0
6.26 -7.2
11.88 -3.8
1.74 -7.7
10.66 -2.7
65.28 0.5
18.23 -0.1
8.05 -3.5
34.05 -7.0
5.76 2.9
0.88 -5.0
4.20 -5.3
24.98 -0.1
84.12 ...
10.65 -2.1
43.05 -2.2
13.20 -4.9
56.95 -1.4
4.15 -1.2
107.53 1.4
4.80 4.0
15.01 -22.2
0.35 -8.0
0.90 -3.1
0.91 -8.1
1.58 -1.6
14.26 -3.2
3.40 -2.0
11.80 -0.5
4.55 -12.4
7.72 -1.3
15.01 -9.8
1.20 -6.0
32.17 -0.1
2.90 -13.7
10.21 -4.5
24.66 -4.9
4.82 -3.1
2.88 -8.9
3.74 -1.2
7.22 -14.7
0.28 -41.0
18.48 3.2
4.65 -4.0
35.50 -4.4
0.35 -10.0
3.71 -7.5
6.91 -0.3
0.98 -19.1
2.01 -16.8
84.42 -4.1
4.80 -1.0
4.26 -5.5
8.08 2.4
5.85 -2.5
15.56 -2.0
7.06 -0.4
44.02 -6.4
60.45 ...
15.25 -1.3
0.75 -3.8
0.61 -6.1
83.71 0.2
1.61 -5.7
2.20 -5.4
ETF
Tuesday, November 14, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
10.15
92.76
54.78
68.14
26.11
97.00
80.95
70.63
109.32
104.86
122.81
64.60
55.48
61.63
259.58
182.37
73.46
58.96
109.10
95.55
71.28
51.85
12.31
119.94
86.68
114.49
106.64
70.14
37.74
68.94
62.11
45.88
43.10
58.51
305.05
110.68
130.86
143.43
119.04
178.10
146.21
121.41
152.51
200.91
85.94
208.79
149.23
108.73
38.16
113.84
84.15
105.93
125.20
116.43
101.76
153.31
47.39
23.00
36.50
121.56
33.82
62.22
61.59
234.28
332.41
257.73
92.86
63.35
56.87
22.59
164.48
127.25
155.00
97.47
43.83
44.20
57.57
–1.74 –19.4
0.09 14.0
5.9
0.35
–1.62 –9.5
–0.04 12.3
–0.05 12.0
–0.41 17.4
–0.27 13.5
1.0
0.05
–0.01 –0.1
0.2
0.07
–0.05 20.5
–0.54 30.7
–0.24 22.1
–0.20 15.4
–0.12 10.3
6.8
–0.03
–0.24 15.0
1.0
0.10
7.9
0.35
0.06 16.4
0.19 14.7
0.24 11.1
2.4
0.03
0.2
–0.43
3.9
–0.08
0.3
0.11
–0.20 18.5
–3.11 13.2
–0.07 19.4
0.23 24.6
–0.67 31.0
0.44 24.6
–0.53 19.8
–1.62 14.9
2.3
–0.05
–0.11 24.7
–0.19 15.2
6.3
–0.37
–0.27 15.7
8.4
–0.27
2.1
–0.21
–0.22 14.7
–0.03 12.3
6.9
–0.02
–0.03 14.6
–0.19 22.5
7.2
–0.28
2.6
–0.13
0.6
0.12
0.02 –0.4
1.1
0.14
5.1
0.68
0.09 19.6
0.4
–0.01
–0.36 29.4
0.55 14.0
–0.13 –1.5
0.1
–0.38
0.21 10.9
–0.12 22.2
–0.27 14.8
–0.23 15.6
–0.16 18.6
–0.14 10.2
–0.23 15.3
8.5
0.19
–0.20 31.0
1.25 17.1
8.0
0.13
–0.18 35.4
5.2
–0.23
–0.36 16.4
0.19 14.4
–0.09 20.0
–0.67 23.5
0.35 20.1
ETF
Closing Chg YTD
Symbol Price (%) (%)
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
53.36
137.55
150.45
82.54
84.09
87.23
118.37
149.35
106.53
85.18
–0.15
–0.22
–0.50
–0.10
0.15
0.05
–0.22
0.06
0.04
–0.21
20.8
23.4
18.7
8.9
1.2
1.8
15.6
13.5
9.6
3.2
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©2017 Dow Jones & Co., Inc. All rights reserved. 1DJ2461
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
Average Yields of Major Banks
Type
236.74
79.44
79.59
142.02
81.53
54.89
55.42
132.37
72.03
101.42
64.22
57.64
31.60
–0.24
0.04
–0.05
–0.25
0.12
0.13
–0.11
–0.18
–0.15
–0.24
–0.70
–0.52
–0.60
15.3
–0.0
0.3
10.1
0.9
1.1
20.8
14.8
18.1
9.0
11.9
16.4
12.6
Tuesday, November 14, 2017
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
0.11
0.22
0.07
0.07
0.07
0.08
0.13
0.14
0.19
0.22
0.35
0.38
0.47
0.52
0.45
0.47
0.92
0.97
-0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.01
0.00
-0.01
0.00
0.00
0.01
-0.01
-0.02
-0.02
-0.02
National average
Savings
Jumbos
Weekly change
Savings
Jumbos
Consumer Savings Rates
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2014 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Minimum
Yield
(%)
Money market and savings account
DollarSavingsDirect /4
(866) 395-8693
CIT Bank /4
(855) 462-2652
Barclays /4
(888) 720-8756
$1
1.50
$100
1.35
$0
1.30
$0
0.81
$5,000
0.30
$10,000
0.15
$10,000
0.15
$1,000
0.05
One-month CD
EH National Bank /2
(888) 392-5265
M.Y. Safra Bank, FSB /4
(212) 652-7200
VirtualBank /4
(877) 998-2265
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Bank/rank
Phone number
Minimum
Yield
(%)
Six-month CD
M.Y. Safra Bank, FSB /4
$5,000
(212) 652-7200
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
VirtualBank /4
$10,000
(877) 998-2265
1.42
1.41
1.41
One-year CD
Two-month CD
$10,000
1.76
$1,500
1.75
$10,000
1.75
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
VirtualBank /4
$10,000
(877) 998-2265
Banesco USA /3
$1,500
(786) 552-0524
1.88
VirtualBank /4
(877) 998-2265
Banesco USA /3
(786) 552-0524
CD Bank /4
(888) 201-8185
Two-year CD
Three-month CD
M.Y. Safra Bank, FSB /4
$5,000
(212) 652-7200
CD Bank /4
$10,000
(888) 201-8185
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.86
1.85
Five-year CD
1.16
1.15
1.06
Capital One 360 /5
$0
(800) 289-1992
VirtualBank /4
$10,000
(877) 998-2265
Goldman Sachs Bank USA /5
$500
(855) 730-7283
2.45
2.41
2.40
High yield jumbos - Minimum is $100,000
Money market and savings account
ableBanking,adivisionofNortheastBank/4
(877) 505-1933
M.Y. Safra Bank, FSB /4
(212) 652-7200
BBVA Compass /3
(800) COMPASS
EH National Bank /2
(888) 392-5265
M.Y. Safra Bank, FSB /4
(212) 652-7200
USAA /5
(800) 583-8295
TRUSTED NEWS AND
INSIGHTS
ON THE GO.
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
BANKRATE.COM® MMA, Savings and CDs
1.30
1.26
1.25
One-month CD
CALIFORNIA
Closing Chg YTD
Symbol Price (%) (%)
ETF
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Citizens Trust Bank /4
(404) 659-5959
0.30
0.22
1.45
1.42
1.41
VirtualBank /4
(877) 998-2265
First Internet Bank of Indiana /4
(888) 873-3424
ableBanking,adivisionofNortheastBank/4
(888) 426-2253
1.76
1.71
1.70
Two-year CD
0.15
0.05
0.01
Three-month CD
TriState Capital Bank /4
(866) 680-8722
M.Y. Safra Bank, FSB /4
(212) 652-7200
Luana Savings Bank /4
(800) 666-2012
Six-month CD
TriState Capital Bank /4
(866) 680-8722
M.Y. Safra Bank, FSB /4
(212) 652-7200
VirtualBank /4
(877) 998-2265
One-year CD
0.81
Two-month CD
! "#$%##
46.89 -0.1
27.44 -2.2
2.91 -7.1
7.13 -1.6
10.35 0.5
12.87 -1.7
9.02 -4.6
2.98 -16.2
10.23 -1.0
0.23 -6.3
12.20 -5.0
20.00 -1.0
0.63 -1.1
6.68 -1.5
2.45 -3.1
3.60 -11.9
8.00 -1.8
0.29 -6.5
3.70 -1.3
24.70 0.3
0.85 -9.4
4.17 -0.5
1.96 -2.5
8.40 -0.5
13.11 -3.4
34.60 -1.7
0.89 -6.0
CytoriTherapWt CYTXW
DBVTechnologies DBVT
DiscovComm C DISCK
Egalet
EGLT
ElbitImaging
EMITF
Eltek
ELTK
EnergyXXIGulfCoast EXXI
FTD
FTD
FrontierComm FTR
FrontierCommPfA FTRPR
Geron
GERN
HemisphereMedia HMTV
HenrySchein
HSIC
HighlandSrLoan SNLN
HoughtonMifflin HMHC
INC Research INCR
Immersion
IMMR
Innodata
INOD
InovioPharma INO
iShESG1-5YCpBd SUSB
iSh1-3YTreasuryBd SHY
LaureateEduc LAUR
LifePointHealth LPNT
MartinMidstream MMLP
MatthewsIntl MATW
MediWound
MDWD
Middleby
MIDD
MinervaNeurosci NERV
NCS Multistage NCSM
NII Holdings
NIHD
Neonode
NEON
Neuralstem
CUR
NeuroMetrix
NURO
NuanceComms NUAN
NumereX
NMRX
OFSCapital
OFS
OPKOHealth
OPK
ObalonTherap OBLN
OptiNose
OPTN
ParkerVision
PRKR
Patterson
PDCO
ProQR Therap PRQR
RISE Education REDU
RadiusHealth RDUS
RedHillBio
RDHL
RenminTianli ABAC
RevolutionLight RVLT
RiminiStreet
RMNI
root9B
RTNB
SabraHealthcare SBRA
SalemMedia
SALM
ScanSource
SCSC
SearsHoldingsWt SHLDW
SearsHoldings SHLD
SonusNetworks SONS
Sunworks
SUNW
SynergyPharm SGYP
TESARO
TSRO
TeleNav
TNAV
TherapixBiosci TRPX
TileShop
TTS
Travelzoo
TZOO
TremontMortgage TRMT
trivago
TRVG
UltragenyxPharm RARE
VangdSTGovBd VGSH
VeecoInstr
VECO
VistaGenTherap VTGN
WMIH
WMIH
WPP
WPPGY
WestmorelandCoal WLB
XenonPharms XENE
Exchange-Traded Portfolios | WSJ.com/ETFresearch
' '
!!& &&& "
!" " # $ 9.24 7.0
108.40 1.2
32.94 -5.4
16.95 -1.0
155.78 0.2
27.28 0.2
0.53 ...
6.00 -1.2
17.95 3.5
28.71 20.4
6.05 4.7
82.12 1.2
46.00 0.4
62.80 0.7
97.30 -2.0
0.67 -3.3
3.61 33.5
28.47 2.4
29.71 1.5
30.21 0.6
76.15 2.4
58.40 -0.1
29.49 1.4
56.05 1.1
19.71 0.7
5.10 29.6
48.80 -13.5
24.60 0.2
22.15 0.9
88.08 -0.1
33.25 9.4
34.25 0.1
7.80 3.3
17.62 3.6
3.23 0.6
9.00 10.1
111.71 ...
30.61 5.6
113.63 3.3
3.84 4.2
40.51 1.9
20.95 1.5
52-Wk %
Sym Hi/Lo Chg
First Internet Bank of Indiana /4
(888) 873-3424
VirtualBank /4
(877) 998-2265
EverBank /3
(855) 228-6755
1.88
1.86
1.82
Five-year CD
1.30
1.16
1.10
VirtualBank /4
(877) 998-2265
First Internet Bank of Indiana /4
(888) 873-3424
Synchrony Bank /5
(800) 903-8154
2.41
2.38
2.35
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.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.
Wednesday, November 15, 2017 | B15
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Net
Sym Close Chg
Net Stock
Sym Close Chg s BCE
BCE 48.35 0.25
BHPBilliton BHP 41.69 -1.01
BHPBilliton BBL 36.50 -0.87
BP
BP 39.61 -0.27
ABB
ABB 25.31 -0.17 BRF
BRFS 12.69
...
AECOM
ACM 34.21 -1.42 t BT Group BT 16.22 -0.01
AES
AES 10.84 0.02 BWX Tech BWXT 60.84 0.26
Aflac
AFL 84.27 0.32 BakerHughes BHGE 30.51 -1.37
AT&T
T
33.72 -0.45 Ball
BLL 39.99 -0.32
AbbottLabs ABT 55.01 -0.29 BancoBilbaoViz BBVA 8.35 0.02
AbbVie
ABBV 94.75 -0.37 BancodeChile BCH 87.60 -1.49
s Accenture ACN 144.96 1.04 BancoMacro BMA 97.61-16.36
AcuityBrands AYI 164.31 0.78 BcoSantChile BSAC 29.93 -0.17
Adient
ADNT 75.03 -1.19 BancoSantander SAN 6.39 -0.03
AdvanceAuto AAP 95.72 13.44 BanColombia CIB 37.61 0.27
AdvSemiEngg ASX 6.23 0.08 BankofAmerica BAC 26.24 -0.16
Aegon
AEG 5.97 0.01 BankofMontreal BMO 76.91 -0.16
AerCap
AER 50.15 -0.46 BankNY Mellon BK 51.85 0.83
Aetna
AET 171.83 -1.19 BkNovaScotia BNS 65.29 -0.05
AffiliatedMgrs AMG 183.15 0.29 Barclays
BCS 9.51 0.15
AgilentTechs A
67.46 0.33 Bard CR
BCR 333.34 0.26
AgnicoEagle AEM 45.40 0.33 BarrickGold ABX 14.01 0.06
Agrium
AGU 105.38 -1.25 BaxterIntl BAX 64.46 0.05
AirProducts APD 162.15 -0.61 BectonDicknsn BDX 220.46 0.46
AlaskaAir ALK 61.68 -0.04 Berkley
WRB 67.78 -0.35
Albemarle ALB 137.65 -5.72 BerkHathwy A BRK.A 274810-1537.00
Alcoa
AA 41.87 -1.26 BerkHathwy B BRK.B 183.34 -1.06
AlexandriaRlEst ARE 126.28 -0.33 BerryGlobal BERY 58.55 -0.02
Alibaba
BABA 181.79 -2.75 BestBuy
BBY 57.20 0.23
Alleghany Y
577.03 0.66 Bio-RadLab A BIO 253.22 -1.21
Allegion
ALLE 82.90 -1.04 BlackKnight BKI 46.30 0.15
Allergan
AGN 171.82 -2.59 BlackBerry BB 10.40 -0.29
AllianceData ADS 226.17 1.97 BlackRock BLK 470.45 5.34
s AlliantEnergy LNT 45.18 0.88 Blackstone BX 31.20 -0.56
AllisonTransm ALSN 42.11 -0.16 BoardwalkPipe BWP 14.37 0.07
Allstate
ALL 99.94 0.50 Boeing
BA 261.76 -0.66
AllyFinancial ALLY 25.84 0.19 BorgWarner BWA 52.07 0.04
t AlticeUSA ATUS 19.40 -1.70 BostonProps BXP 124.78 -1.15
Altria
MO 65.73 -0.11 BostonSci BSX 28.32 -0.13
AlumofChina ACH 18.20 0.17 Braskem
BAK 28.27 -1.30
Ambev
ABEV 6.06 -0.06 Bristol-Myers BMY 61.25 0.26
s Ameren
AEE 64.54 1.15 BritishAmTob BTI 64.19 -0.52
AmericaMovil AMX 16.93 -0.27 BroadridgeFinl BR 89.71 2.13
AmericaMovil A AMOV 16.78 -0.35 BrookfieldMgt BAM 41.36 -0.85
AmCampus ACC 42.69 -0.03 BrookfieldInfr BIP 43.78 0.01
s AEP
AEP 77.39 1.26 Brown&Brown BRO 50.00 0.60
AmerExpress AXP 93.76 -0.14 Brown-Forman A BF.A 59.27 0.49
AmericanFin AFG 106.10 0.07 Brown-Forman B BF.B 59.12 0.94
AmerHomes4Rent AMH 21.85 -0.27 t BuckeyePtrs BPL 48.48 -1.26
AIG
AIG 61.46 -0.54 Bunge
BG 66.22 -0.09
AmerTowerREIT AMT 149.49 -0.55 BurlingtonStrs BURL 97.35 -0.90
s AmerWaterWorks AWK 90.71 1.19 CBD Pao
CBD 20.82 -0.47
Ameriprise AMP 157.11 -0.21 s CBRE Group CBG 42.18
...
AmerisourceBrgn ABC 75.40
... CBS A
CBS.A 56.62 0.83
Ametek
AME 69.49 0.60 CBS B
CBS 56.41 0.49
s Amphenol APH 88.98 0.50 CF Industries CF 35.52 -1.55
AnadarkoPetrol APC 48.05 -2.18 CGI Group GIB 53.32 0.35
Andeavor ANDV 105.69 -0.46 CIT Group CIT 47.84 1.93
AndeavorLog ANDX 44.13 -1.01 s CMS Energy CMS 50.55 0.92
AB InBev BUD 114.77 -1.14 CNA Fin
CNA 54.67 0.25
AnnalyCap NLY 11.49 0.11 CNOOC
CEO 137.81 -3.06
AnteroResources AR 18.86 -1.03 CPFLEnergia CPL 16.56 -0.21
Anthem
ANTM 218.45 -0.01 CRH
CRH 34.97 -0.14
Aon
AON 143.54 1.65 CVS Health CVS 70.44 -1.04
Apache
APA 41.88 -1.61 CabotOil
COG 28.46 -0.60
ApartmtInv AIV 45.23 -0.24 CalAtlantic CAA 52.13 0.32
ApolloGlbMgmt APO 29.62 0.43 CamdenProperty CPT 94.92 0.19
s AquaAmerica WTR 37.09 0.65 CampbellSoup CPB 47.81 0.54
Aramark
ARMK 40.02 -2.83 CIBC
CM 88.40 -0.45
ArcelorMittal MT 27.66 -1.36 CanNtlRlwy CNI 80.18 -0.15
ArcherDaniels ADM 39.79 0.05 CanNaturalRes CNQ 34.42 -1.64
Arconic
ARNC 23.20 -0.59 CanPacRlwy CP 171.83 -1.52
s AristaNetworks ANET 227.10 1.95 Canon
CAJ 38.36 -0.02
ArrowElec ARW 77.77 -0.30 CapitalOne COF 86.00 -0.95
AstraZeneca AZN 33.25 0.34 t CardinalHealth CAH 57.07 -1.26
Athene
ATH 48.26 -0.13 Carlisle
CSL 108.32 -0.78
s AtmosEnergy ATO 90.54 1.00 CarMax
KMX 70.94 -1.41
Autohome ATHM 60.02 -1.17 Carnival
CCL 66.02 0.04
Autoliv
ALV 122.93 -0.32 Carnival
CUK 66.27 0.12
AutoZone AZO 607.63 12.37 Caterpillar CAT 137.54 1.01
Avalonbay AVB 187.51 -0.60 Celanese A CE 104.89 -0.91
s Avangrid
AGR 52.56 1.35 Cemex
CX
7.81 -0.10
AveryDennison AVY 108.17 0.23 CenovusEnergy CVE 10.40 -0.54
AxaltaCoating AXTA 31.79 -0.13 Centene
CNC 93.03 -1.33
BB&T
BBT 46.84 0.35 CenterPointEner CNP 29.95 0.32
Tuesday, November 14, 2017
Stock
NYSE
Stock
Net
Sym Close Chg
CentraisElBras EBR 5.85
t CenturyLink CTL 14.40
Chemours CC 50.60
Chevron
CVX 116.92
ChinaEastrnAir CEA 26.11
ChinaLifeIns LFC 17.01
ChinaMobile CHL 50.80
ChinaPetrol SNP 71.68
ChinaSoAirlines ZNH 39.16
ChinaTelecom CHA 48.92
ChinaUnicom CHU 15.10
Chipotle
CMG 280.90
Chubb
CB 150.69
ChunghwaTel CHT 33.86
Church&Dwight CHD 45.74
Cigna
CI 197.14
CimarexEnergy XEC 117.52
Citigroup
C
71.53
CitizensFin CFG 38.07
Clorox
CLX 135.31
s Coca-Cola KO 47.43
Coca-Cola Euro CCE 39.34
Coca-Cola Femsa KOF 67.86
ColgatePalm CL 73.46
ColonyNorthStar CLNS 12.46
Comerica
CMA 78.71
SABESP
SBS 8.94
ConagraBrands CAG 35.87
ConchoRscs CXO 140.46
ConocoPhillips COP 51.23
s ConEd
ED 88.96
ConstBrands A STZ 218.09
ContinentalRscs CLR 44.57
Cooper
COO 236.78
Corning
GLW 31.70
Coty
COTY 16.95
Credicorp
BAP 203.00
CreditSuisse CS 15.92
CrownCastle CCI 113.16
CrownHoldings CCK 58.93
Cullen/Frost CFR 94.96
Cummins
CMI 169.12
s DCT Industrial DCT 60.75
s DTE Energy DTE 115.58
DXC Tech DXC 95.76
Danaher
DHR 93.19
Darden
DRI 82.85
DaVita
DVA 54.66
Deere
DE 132.88
DellTechs DVMT 81.49
DelphiAuto DLPH100.29
DeltaAir
DAL 48.90
DeutscheBank DB 18.19
DevonEnergy DVN 38.23
Diageo
DEO 136.42
DigitalRealty DLR 122.72
DiscoverFinSvcs DFS 64.21
Disney
DIS 103.17
DolbyLab
DLB 61.00
DollarGeneral DG 83.25
s DominionEner D
82.84
Domino's
DPZ 175.66
Donaldson DCI 46.35
DouglasEmmett DEI 40.65
Dover
DOV 93.61
DowDuPont DWDP 68.57
DrPepperSnap DPS 87.82
DrReddy'sLab RDY 35.48
s DukeEnergy DUK 91.09
DukeRealty DRE 29.12
ENI
E
33.25
EOG Rscs EOG 102.47
EQT
EQT 60.60
t EQT Midstream EQM 68.08
EastmanChem EMN 90.24
Eaton
ETN 76.89
EatonVance EV 51.31
Ecolab
ECL 131.40
Ecopetrol
EC 11.70
EdisonInt
EIX 82.64
EdwardsLife EW 105.15
EmersonElec EMR 60.74
EnbridgeEnPtrs EEP 14.12
t Enbridge
ENB 34.97
Encana
ECA 11.89
-0.30
-0.93
-1.31
-0.31
1.38
-0.41
-0.39
-1.84
1.01
-1.08
-0.41
3.40
-0.65
0.17
0.39
-0.47
-4.27
-0.46
0.87
0.23
0.71
-0.08
-0.66
-0.24
-0.14
1.77
-0.15
1.03
-1.95
-1.34
1.34
-2.67
-1.26
-0.29
0.04
0.20
1.91
0.05
0.26
-0.52
-0.24
-0.08
0.03
1.34
-1.04
-0.14
0.01
-0.33
0.97
-0.32
4.72
0.04
0.26
-1.42
0.47
0.02
-0.79
-1.57
0.95
-0.30
0.99
2.63
-0.04
0.14
-0.18
-1.51
0.79
-0.03
1.21
0.01
-0.16
-1.99
-3.98
-1.20
-1.19
-1.05
0.42
-0.24
-0.16
1.54
-0.09
-0.65
0.09
-0.77
-0.37
Stock
Net
Sym Close Chg
EnelAmericas ENIA 9.98
EnelChile
ENIC 5.65
EnelGenChile EOCC 25.82
EnergyTransferEq ETE 16.65
EnergyTransfer ETP 16.42
Entergy
ETR 87.42
EnterpriseProd EPD 24.06
Equifax
EFX 109.31
s EquityLife ELS 90.45
EquityResdntl EQR 69.98
EssexProp ESS 256.82
EsteeLauder EL 126.02
EverestRe RE 226.13
s EversourceEner ES 65.81
s Exelon
EXC 42.39
ExtraSpaceSt EXR 86.34
ExxonMobil XOM 82.24
FMC
FMC 93.01
FactSet
FDS 195.22
FederalRealty FRT 131.81
FedEx
FDX 219.94
Ferrari
RACE 109.91
FiatChrysler FCAU 17.50
FibriaCelulose FBR 15.30
s FidNatlFin FNF 39.87
FNFV Group FNFV 17.50
FidNatlInfo FIS 93.43
58.com
WUBA 72.39
FirstAmerFin FAF 54.68
FirstData
FDC 16.88
FirstRepBank FRC 92.04
s FirstEnergy FE 35.05
FleetCorTech FLT 178.68
Fluor
FLR 45.66
FomentoEconMex FMX 87.80
FordMotor F
12.02
ForestCIty A FCE.A 25.50
Fortis
FTS 37.89
Fortive
FTV 72.67
FortBrandsHome FBHS 64.69
Franco-Nevada FNV 84.64
FranklinRscs BEN 40.83
FreeportMcM FCX 13.80
FreseniusMed FMS 49.17
GGP
GGP 23.95
s Gallagher AJG 65.10
Gap
GPS 26.73
GardnerDenver GDI 28.66
Gartner
IT 117.64
Gazit-Globe GZT 9.65
GeneralDynamics GD 200.22
t GeneralElec GE 17.90
GeneralMills GIS 54.12
GeneralMotors GM 43.00
Genpact
G
31.06
GenuineParts GPC 86.01
Gildan
GIL 30.09
t GSK
GSK 34.98
GlobalPayments GPN 101.34
GoDaddy
GDDY 48.65
Goldcorp
GG 13.24
GoldmanSachs GS 237.24
Graco
GGG 129.35
Grainger
GWW 195.58
s GreatPlainsEner GXP 33.99
GpoAvalAcc AVAL 8.32
GpFinSantMex BSMX 8.13
t GrupoTelevisa TV 19.50
Guidewire GWRE 79.88
HCA Healthcare HCA 76.05
HCP
HCP 27.02
HDFC Bank HDB 92.96
HP
HPQ 21.36
HSBC
HSBC 48.32
Halliburton HAL 42.94
Hanesbrands HBI 19.25
HarleyDavidson HOG 46.93
Harris
HRS 139.34
HartfordFinl HIG 56.22
HealthcareAmer HTA 30.65
Heico
HEI 90.14
Heico A
HEI.A 75.35
Helm&Payne HP 54.38
Herbalife
HLF 65.03
Hershey
HSY 109.86
Hess
HES 44.91
HewlettPackard HPE 13.27
Hilton
HLT 72.91
s HollyFrontier HFC 42.84
s HomeDepot HD 168.06
HondaMotor HMC 32.49
s Honeywell HON 147.32
HormelFoods HRL 32.98
s DR Horton DHI 47.64
HostHotels HST 19.97
HuanengPower HNP 27.71
Hubbell
HUBB 121.43
Humana
HUM 239.56
HuntingIngalls HII 237.53
Huntsman HUN 30.11
HyattHotels H
69.55
ICICI Bank IBN 9.53
ING Groep ING 18.11
Invesco
IVZ 34.47
IDEX
IEX 127.64
IllinoisToolWks ITW 158.54
Infosys
INFY 14.91
Ingersoll-Rand IR
84.70
-0.22
-0.03
-0.08
-0.07
-0.38
0.78
-0.30
0.52
-0.12
-0.17
-1.81
-0.30
-2.42
1.05
0.63
-0.53
-0.65
-1.87
-0.67
0.92
-1.49
-0.53
0.19
-0.11
1.13
...
0.58
-0.61
0.72
-0.25
0.45
0.84
-2.74
-1.02
0.81
-0.14
0.13
0.17
0.07
0.26
1.25
0.02
-0.63
0.54
-0.10
1.16
0.01
-0.75
1.32
0.26
0.09
-1.12
1.15
-0.57
-0.04
0.72
-0.08
-0.11
1.74
0.08
-0.02
-3.03
0.53
-0.21
0.34
0.10
0.01
-0.48
0.06
-1.66
-0.21
-0.65
0.19
0.06
-1.27
0.02
0.05
0.37
0.53
-0.10
-0.02
-0.35
-2.00
0.18
1.68
-1.68
-0.21
0.29
0.99
2.71
-0.32
0.60
0.53
0.55
-0.06
-0.26
-0.33
-1.38
-1.65
-0.58
-0.19
0.07
-0.05
-0.05
-0.32
0.93
0.11
-0.06
Stock
Net
Sym Close Chg
Ingredion
INGR 130.63 1.50
ICE
ICE 67.30 0.22
InterContinentl IHG 56.27 -0.08
IBM
IBM 148.89 0.49
IntlFlavors IFF 150.65 0.93
IntlPaper
IP
54.33 0.41
Interpublic IPG 18.64 -0.03
InvitatHomes INVH 23.50 -0.07
s IronMountain IRM 41.00 0.01
IsraelChemicals ICL 3.94 -0.12
ItauUnibanco ITUB 12.37 -0.32
JPMorganChase JPM 97.27 -0.59
JacobsEngg JEC 57.94 -1.88
JamesHardie JHX 15.81 -0.16
s JanusHenderson JHG 36.82 -0.22
J&J
JNJ 139.49 -0.27
t JohnsonControls JCI 35.89 -0.11
s JonesLang JLL 150.11 1.95
JuniperNetworks JNPR 26.43 1.07
KAR Auction KAR 48.14 -0.11
KB Fin
KB 51.06 0.24
KKR
KKR 19.20 -0.03
KT
KT 14.00 0.09
KSCitySouthern KSU 104.25 -0.87
Kellogg
K
65.18 1.42
KeyCorp
KEY 18.25 0.33
KeysightTechs KEYS 44.00 -0.32
KilroyRealty KRC 73.97 -0.51
KimberlyClark KMB 114.55 -0.86
KimcoRealty KIM 18.92 -0.03
t KinderMorgan KMI 17.43 -0.03
Knight-Swift KNX 38.75 0.71
Kohl's
KSS 42.20 1.02
KoninklijkePhil PHG 39.10 0.31
KoreaElcPwr KEP 17.15 -0.02
Kroger
KR 22.02
...
Kyocera
KYO 69.92 1.27
LATAMAirlines LTM 12.94 -0.12
L Brands
LB 49.27 0.32
LG Display LPL 13.10 -0.22
LINE
LN 43.36 0.12
L3 Tech
LLL 184.71 -0.41
LabCpAm LH 149.91 0.04
s LambWeston LW 53.39 0.61
LasVegasSands LVS 67.27 0.02
Lazard
LAZ 46.50 -1.19
Lear
LEA 174.93 0.57
Leggett&Platt LEG 45.57 -0.24
Leidos
LDOS 61.38 -0.25
Lennar A
LEN 58.56 0.34
Lennar B
LEN.B 48.85 0.09
LennoxIntl LII 190.34 1.11
LeucadiaNatl LUK 25.32 -0.33
LibertyProperty LPT 44.90 0.03
EliLilly
LLY 82.49 0.15
LincolnNational LNC 73.44 -0.46
LionsGate A LGF.A 30.59 -0.10
LionsGate B LGF.B 29.36 -0.19
s LiveNationEnt LYV 46.16 1.23
LloydsBanking LYG 3.54 0.01
LockheedMartin LMT 313.74 0.79
Loews
L
49.94 0.05
Lowe's
LOW 79.23 1.70
LyondellBasell LYB 103.74 -0.45
M&T Bank MTB 160.71 1.27
MGM Resorts MGM 32.85 -0.21
MPLX
MPLX 33.72 -0.41
MSCI
MSCI 125.12 -0.34
Macerich
MAC 64.76 0.69
Macy's
M
19.70 0.37
MagellanMid MMP 65.30 -0.92
MagnaIntl MGA 52.82 -0.22
Manpower MAN 125.98 -0.02
ManulifeFin MFC 20.95 -0.12
MarathonOil MRO 14.84 -0.66
MarathonPetrol MPC 62.87 0.67
Markel
MKL 1077.82 6.06
Marsh&McLen MMC 83.60 0.60
MartinMarietta MLM 212.16 -0.31
Masco
MAS 39.04 0.15
Mastercard MA 149.95 0.26
McCormick MKC 98.58 1.62
McCormickVtg MKC.V 98.55 1.42
McDonalds MCD 168.11 0.74
McKesson MCK 136.17 -1.88
Medtronic MDT 79.16 -0.04
Merck
MRK 54.99 -0.11
MetLife
MET 52.00 -0.16
MettlerToledo MTD 631.37 0.53
MichaelKors KORS 54.89 0.80
MicroFocus MFGP 34.53 0.26
MidAmApt MAA 103.94 -2.09
MitsubishiUFJ MTU 6.64 0.13
MizuhoFin MFG 3.51 -0.07
MobileTeleSys MBT 11.11 0.18
MohawkInds MHK 267.14 2.12
MolsonCoors B TAP 80.52 -0.32
Monsanto MON 118.05 -0.10
Moody's
MCO 143.14 0.99
MorganStanley MS 48.38 -0.25
Mosaic
MOS 23.00 -0.28
MotorolaSol MSI 91.02 -0.35
s NRG Energy NRG 28.92 0.14
s NTTDoCoMo DCM 25.01 0.08
NVR
NVR 3325.67 25.67
t NationalGrid NGG 59.19 -0.01
NatlOilwell NOV 32.27 -0.79
NatlRetailProp NNN 42.53 -0.02
Stock
Net
Sym Close Chg
NewOrientalEduc EDU 84.10
NY CmntyBcp NYCB 12.97
t NewellBrands NWL 28.04
NewfieldExpln NFX 29.82
NewmontMin NEM 36.28
s NextEraEnergy NEE 158.40
NielsenHoldings NLSN 35.97
Nike
NKE 55.98
NiSource
NI
27.58
NobleEnergy NBL 26.67
Nokia
NOK 4.83
NomuraHoldings NMR 5.71
Nordstrom JWN 39.16
NorfolkSouthern NSC 126.98
NorthropGrum NOC 300.46
Novartis
NVS 83.03
NovoNordisk NVO 49.84
Nucor
NUE 54.86
OGE Energy OGE 35.85
ONEOK
OKE 51.38
OccidentalPetrol OXY 67.32
Olin
OLN 35.60
OmegaHealthcare OHI 28.34
Omnicom OMC 67.66
Oracle
ORCL 49.20
Orange
ORAN 16.44
OrbitalATK OA 132.78
Orix
IX
84.95
Oshkosh
OSK 85.81
s OwensCorning OC 82.64
PG&E
PCG 56.61
PLDT
PHI 31.88
PNC Fin
PNC 132.00
POSCO
PKX 70.50
PPG Ind
PPG 114.35
PPL
PPL 37.07
PVH
PVH 126.83
PackagingCpAm PKG 112.71
PaloAltoNtwks PANW 138.81
ParkHotels PK 28.38
ParkerHannifin PH 179.67
ParsleyEnergy PE 25.96
Pearson
PSO 9.12
PembinaPipeline PBA 35.22
Pentair
PNR 68.02
PepsiCo
PEP 115.76
PerkinElmer PKI 71.61
Perrigo
PRGO 86.00
PetroChina PTR 68.61
PetroleoBrasil PBR 9.68
PetroleoBrasilA PBR.A 9.20
Pfizer
PFE 35.38
PhilipMorris PM 102.72
Phillips66 PSX 92.83
PinnacleFoods PF 55.00
s PinnacleWest PNW 91.71
PioneerNatRscs PXD 152.81
PlainsAllAmPipe PAA 20.01
PlainsGP
PAGP 20.64
PolarisIndustries PII 120.90
Potash
POT 18.90
Praxair
PX 147.63
PrincipalFin PFG 68.33
Procter&Gamble PG 88.87
s Progressive PGR 51.28
s Prologis
PLD 67.19
PrudentialFin PRU 109.56
Prudential PUK 48.67
s PublicServiceEnt PEG 51.72
PublicStorage PSA 212.92
s PulteGroup PHM 31.77
QuantaServices PWR 35.75
QuestDiag DGX 92.42
QuintilesIMS Q
103.48
RELX
RENX 22.46
RELX
RELX 23.19
RPM
RPM 51.46
RSP Permian RSPP 36.07
RalphLauren RL 87.20
RaymondJames RJF 83.03
Raytheon RTN 183.94
RealtyIncome O
56.90
RedHat
RHT 124.49
RegencyCtrs REG 66.91
RegionsFin RF 15.69
ReinsGrp
RGA 149.73
RepublicSvcs RSG 63.92
ResMed
RMD 84.22
RestaurantBrands QSR 64.81
RioTinto
RIO 48.00
s RobertHalf RHI 53.51
Rockwell
ROK 191.58
RockwellCollins COL 132.88
RogersComm B RCI 52.98
Rollins
ROL 45.29
RoperTech ROP 256.60
RoyalBkCanada RY 78.45
RoyalBkScotland RBS 7.31
RoyalCaribbean RCL 123.51
RoyalDutchA RDS.A 63.80
RoyalDutchB RDS.B 65.84
SAP
SAP 113.08
S&P Global SPGI 159.30
SINOPEC
SHI 59.21
SK Telecom SKM 25.11
SLGreenRealty SLG 100.04
s Salesforce.com CRM 106.23
Sanofi
SNY 44.65
-0.48
0.19
-0.43
-2.27
0.57
1.62
-0.20
0.07
0.26
-0.86
-0.03
...
0.44
-0.64
1.98
0.32
0.08
-0.84
0.73
-0.83
-0.61
-0.94
0.17
-0.26
-0.20
-0.02
-0.11
-0.15
0.30
0.44
-0.28
0.30
-0.23
-0.79
-0.20
0.44
-0.64
0.35
0.14
-0.39
-1.63
-0.81
0.01
-0.55
-0.25
1.72
0.34
-0.80
-1.59
-0.94
-0.86
0.08
-0.79
-0.49
0.97
1.92
-4.11
-0.35
-0.24
0.62
-0.21
-0.52
0.30
-0.13
0.18
0.12
-0.88
-0.12
1.06
-0.33
0.20
-0.97
0.42
0.57
0.11
0.10
-0.21
-1.07
0.53
-0.34
-0.52
0.23
0.50
0.23
0.25
-0.52
0.01
0.22
-0.41
-1.20
-0.02
-0.96
-0.49
0.61
-0.05
0.56
-0.12
0.02
-0.97
-0.10
-0.08
0.71
1.27
-0.93
0.05
-0.02
0.45
0.01
Stock
Net
Sym Close Chg
SantanderCons SC 15.78
Sasol
SSL 30.04
Scana
SCG 44.50
Schlumberger SLB 62.78
SchwabC
SCHW 44.59
ScottsMiracleGro SMG 98.15
SealedAir SEE 45.10
SemicondctrMfg SMI 7.90
s SempraEnergy SRE 122.23
SensataTech ST 47.31
ServiceCorp SCI 34.79
ServiceMaster SERV 46.75
ServiceNow NOW 124.48
ShawComm B SJR 22.43
SherwinWilliams SHW 389.13
ShinhanFin SHG 43.44
Shopify
SHOP 98.97
SimonProperty SPG 160.51
SmithAO
AOS 58.82
Smith&Nephew SNN 35.74
Smucker
SJM 108.19
Snap
SNAP 12.57
SnapOn
SNA 156.68
SOQUIMICH SQM 57.93
Sony
SNE 46.05
Southern
SO 52.31
SoCopper SCCO 42.90
SouthwestAir LUV 53.75
t SpectraEnerPtrs SEP 40.10
SpectrumBrands SPB 103.60
SpiritAeroSys SPR 80.85
Sprint
S
5.93
s Square
SQ 39.74
StanleyBlackDck SWK 164.11
StarwoodProp STWD 21.72
StateStreet STT 91.31
Statoil
STO 20.24
Steris
STE 88.26
STMicroelec STM 23.94
Stryker
SYK 155.95
SumitomoMits SMFG 7.79
s SunComms SUI 93.58
SunLifeFinancial SLF 38.90
SuncorEnergy SU 35.77
SunTrustBanks STI 57.64
SynchronyFin SYF 32.56
Syngenta SYT 92.30
Sysco
SYY 54.93
TAL Education TAL 28.76
s TE Connectivity TEL 93.82
Telus
TU 37.96
TIM Part
TSU 17.34
t TJX
TJX 67.94
TableauSftwr DATA 71.18
TaiwanSemi TSM 41.86
Tapestry
TPR 40.20
TargaResources TRGP 41.56
Target
TGT 60.09
TataMotors TTM 31.62
TechnipFMC FTI 27.16
TeckRscsB TECK 21.20
TelecomArgentina TEO 30.86
TelecomItalia TI
7.84
TelecomItalia A TI.A 6.56
TeledyneTech TDY 178.94
Teleflex
TFX 256.55
TelefonicaBras VIV 14.65
Telefonica TEF 9.92
TelekmIndonesia TLK 29.86
Tenaris
TS 28.71
Teradyne
TER 43.35
TevaPharm TEVA 11.75
Textron
TXT 53.57
ThermoFisherSci TMO 189.08
ThomsonReuters TRI 44.37
ThorIndustries THO 131.77
3M
MMM 229.33
Tiffany
TIF 93.55
TimeWarner TWX 87.51
s Toll Bros
TOL 47.05
Torchmark TMK 85.18
Toro
TTC 61.84
TorontoDomBk TD 57.23
Total
TOT 55.21
TotalSystem TSS 73.41
ToyotaMotor TM 124.87
TransCanada TRP 49.58
TransDigm TDG 268.02
s TransUnion TRU 54.47
Travelers
TRV 133.86
TurkcellIletism TKC 9.10
TurquoiseHill TRQ 3.02
Twitter
TWTR 20.05
TylerTech TYL 171.91
s TysonFoods TSN 76.07
UBS Group UBS 17.01
UDR
UDR 39.99
UGI
UGI 48.71
US Foods USFD 26.81
UltraparPart UGP 21.39
Unilever
UN 57.08
Unilever
UL 55.81
UnionPacific UNP 116.23
t UnitedContinental UAL 57.20
UnitedMicro UMC 2.56
UPS B
UPS 114.07
UnitedRentals URI 144.87
-0.15
-0.31
-0.10
-2.26
-0.01
-0.95
0.12
-1.16
0.27
-0.07
-0.01
-0.14
-0.55
-0.15
-0.58
0.23
0.20
0.20
-0.10
0.22
1.70
0.17
0.61
-1.30
-0.03
0.49
-1.03
0.50
0.05
-1.41
0.60
-0.10
-0.24
0.14
0.07
0.52
-0.45
0.73
0.08
0.20
-0.06
0.29
-0.03
-0.53
0.31
-0.03
...
0.91
-0.80
0.46
-0.10
-0.38
-2.82
-0.06
-0.15
-0.24
-0.73
0.31
-0.37
-1.24
-0.64
-1.70
-0.22
-0.01
-0.43
-0.05
-0.21
0.02
-0.15
-0.68
-0.50
0.01
-0.13
0.87
0.09
1.32
1.11
0.47
-0.98
1.00
0.49
-0.08
0.06
-0.34
0.64
-0.80
0.10
6.02
0.46
0.54
0.09
-0.06
-0.12
1.02
0.48
...
0.05
0.40
0.23
-0.44
-0.03
-0.05
-0.25
-0.61
-0.01
-0.74
0.26
Stock
Net
Sym Close Chg
US Bancorp USB 51.83
UnitedTech UTX 118.80
UnitedHealth UNH 211.71
UniversalHealthB UHS 97.00
UnumGroup UNM 52.81
VEREIT
VER 8.13
VF
VFC 69.92
Visa
V
111.98
VailResorts MTN 229.73
Vale
VALE 9.77
ValeroEnergy VLO 81.37
Vantiv
VNTV 69.82
s VarianMed VAR 109.34
Vectren
VVC 68.20
Vedanta
VEDL 18.77
VeevaSystems VEEV 60.79
Ventas
VTR 65.04
Verizon
VZ 44.22
VistraEnergy VST 19.18
s VMware
VMW 122.47
VornadoRealty VNO 76.14
VoyaFinancial VOYA 41.29
VulcanMatls VMC 123.92
WABCO
WBC 143.55
s WEC Energy WEC 69.53
W.P.Carey WPC 71.33
Wabtec
WAB 73.53
Wal-Mart WMT 91.09
WasteConnections WCN 70.69
WasteMgt WM 82.38
Waters
WAT 195.64
Watsco
WSO 164.19
WellCareHealth WCG 200.11
WellsFargo WFC 54.04
Welltower HCN 68.09
WestPharmSvcs WST 100.85
WestarEnergy WR 55.49
WestAllianceBcp WAL 54.05
t WesternGasEquity WGP 36.37
t WesternGasPtrs WES 44.07
WesternUnion WU 19.65
WestlakeChem WLK 92.75
WestpacBanking WBK 24.24
WestRock WRK 58.66
Weyerhaeuser WY 36.20
WheatonPrecMet WPM 20.51
Whirlpool WHR 161.00
Williams
WMB 27.72
WilliamsPartners WPZ 35.18
Wipro
WIT 5.17
WooriBank WF 41.20
Wyndham WYN 107.54
XPO Logistics XPO 73.22
s XcelEnergy XEL 51.80
Xerox
XRX 28.08
Xylem
XYL 66.34
YPF
YPF 22.37
YumBrands YUM 79.43
YumChina YUMC 41.96
ZTO Express ZTO 16.56
ZayoGroup ZAYO 34.37
ZimmerBiomet ZBH 112.21
Zoetis
ZTS 69.90
0.15
1.73
-0.95
-0.76
-0.01
-0.10
0.25
0.58
0.40
-0.33
0.70
0.43
1.10
1.27
-0.53
-0.70
-0.35
-0.53
0.23
0.63
0.17
0.25
-0.07
-1.21
1.18
-0.36
-1.73
0.10
0.54
0.24
1.00
-0.19
-1.54
0.32
-0.23
-0.78
0.77
0.30
0.10
-0.54
0.13
-1.20
-0.35
-0.18
0.24
0.30
-0.67
-0.51
-1.05
0.08
-0.30
1.24
0.74
1.01
-0.09
0.31
-0.79
-0.01
-0.17
-0.36
0.38
1.15
1.02
NASDAQ
AGNC Invt AGNC 19.94
Ansys
ANSS 149.43
ASML
ASML 180.34
Abiomed
ABMD 193.75
ActivisionBliz ATVI 64.03
AdobeSystems ADBE 181.32
AdvMicroDevices AMD 11.12
AkamaiTech AKAM 53.75
AlexionPharm ALXN 109.98
AlignTech ALGN 254.02
Alkermes ALKS 47.69
AlnylamPharm ALNY130.32
Alphabet C GOOG 1026.00
Alphabet A GOOGL 1041.64
Altaba
AABA 69.52
Amazon.com AMZN 1136.84
Amdocs
DOX 63.79
Amerco
UHAL 363.63
AmerAirlines AAL 45.81
Amgen
AMGN 170.13
AnalogDevices ADI 90.44
Apple
AAPL 171.34
ApplMaterials AMAT 56.42
ArchCapital ACGL 95.56
Atlassian
TEAM 52.38
Autodesk ADSK 123.87
ADP
ADP 112.08
Baidu
BIDU 234.92
BankofOzarks OZRK 43.78
Biogen
BIIB 309.69
BioMarinPharm BMRN 81.41
Bioverativ BIVV 54.39
bluebirdbio BLUE 158.35
BrighthouseFin BHF 55.38
Broadcom AVGO 263.26
CA
CA 32.31
CDK Global CDK 62.66
CDW
CDW 67.17
CH Robinson CHRW 80.37
CME Group CME 140.20
CSX
CSX 49.40
s CadenceDesign CDNS 44.77
0.12
-1.44
1.49
-1.38
0.41
-0.53
0.03
0.23
-3.47
0.29
-1.48
1.21
0.25
0.44
-0.75
7.67
1.25
-1.80
0.07
-1.37
0.41
-2.63
-0.61
-0.14
0.11
-0.77
0.55
-2.45
0.22
-6.02
0.35
0.48
3.80
-0.61
-1.75
-0.01
-0.60
-0.57
0.01
0.05
-0.35
0.10
Stock
Net
Sym Close Chg
CaesarsEnt CZR 12.40
Carlyle
CG 20.65
s CboeGlobalMkts CBOE 116.60
Celgene
CELG 98.86
CentennialRsc CDEV 19.78
Cerner
CERN 65.07
CharterComms CHTR 336.81
CheckPoint CHKP102.40
ChinaLodging HTHT 124.66
CincinnatiFin CINF 74.06
Cintas
CTAS 149.20
CiscoSystems CSCO 34.04
CitrixSystems CTXS 85.22
s Cognex
CGNX 137.73
CognizantTech CTSH 74.97
Coherent
COHR 300.07
Comcast A CMCSA 36.86
CommerceBcshrs CBSH 55.66
CommScope COMM 33.84
Copart
CPRT 35.88
CoStar
CSGP 299.05
Costco
COST 171.44
Ctrip.com CTRP 45.30
CypressSemi CY 16.78
CyrusOne CONE 63.70
DISH Network DISH 50.51
DentsplySirona XRAY 65.39
DiamondbkEner FANG 108.27
t DiscovComm C DISCK 15.27
DiscovComm A DISCA 16.28
DollarTree DLTR 93.45
E*TRADE ETFC 43.87
EXACT Sci EXAS 58.33
EastWestBncp EWBC 57.23
eBay
EBAY 35.22
ElbitSystems ESLT 142.52
ElectronicArts EA 112.27
Equinix
EQIX 481.05
Ericsson
ERIC 5.95
ErieIndemnity A ERIE 122.34
Exelixis
EXEL 25.11
Expedia
EXPE 122.09
ExpeditorsIntl EXPD 59.39
ExpressScripts ESRX 60.25
F5Networks FFIV 121.22
Facebook
FB 178.07
Fastenal
FAST 47.47
FifthThirdBncp FITB 28.61
FirstSolar FSLR 61.28
Fiserv
FISV 129.73
Flex
FLEX 18.24
FlirSystems FLIR 47.09
Fortinet
FTNT 40.02
Gaming&Leisure GLPI 36.56
s Garmin
GRMN 60.75
GileadSciences GILD 71.15
Goodyear GT 29.36
Grifols
GRFS 23.18
GpoFinGalicia GGAL 50.27
HD Supply HDS 34.58
Hasbro
HAS 95.98
t HenrySchein HSIC 66.84
Hologic
HOLX 39.62
JBHunt
JBHT 102.47
HuntingtonBcshs HBAN 13.61
IAC/InterActive IAC 126.12
IdexxLab
IDXX 149.54
IHSMarkit INFO 43.89
s IPG Photonics IPGP 226.27
IRSA Prop IRCP 56.46
IcahnEnterprises IEP 52.87
Icon
ICLR 112.35
Illumina
ILMN 206.05
Incyte
INCY 105.12
Intel
INTC 45.86
InteractiveBrkrs IBKR 54.05
s Intuit
INTU 155.21
IntuitiveSurgical ISRG 390.97
IonisPharma IONS 53.53
JD.com
JD 38.90
JackHenry JKHY 113.10
JazzPharma JAZZ 134.24
JetBlue
JBLU 19.63
JunoTherap JUNO 53.86
KLA Tencor KLAC 102.15
KraftHeinz KHC 79.38
LKQ
LKQ 37.46
LamResearch LRCX 208.64
LamarAdv LAMR 76.26
LibertyBroadbandC LBRDK 87.88
LibertyBroadbandA LBRDA 86.85
LibertyGlobal A LBTYA 29.35
LibertyGlobal C LBTYK 28.34
LibertyLiLAC C LILAK 22.06
LibertyLiLAC A LILA 22.04
LibertyQVC A QVCA 23.73
LibertyVenturesA LVNTA 56.13
LibertyFormOne C FWONK 36.12
LibertyFormOne A FWONA 34.42
LibertyBraves A BATRA 21.71
LibertyBraves C BATRK 21.76
LibertySirius A LSXMA 40.48
LibertySirius C LSXMK 40.37
LincolnElectric LECO 86.38
LogitechIntl LOGI 34.68
LogMeIn
LOGM 114.50
lululemon LULU 64.93
MKS Instrum MKSI 103.40
...
-0.53
0.86
-2.30
-0.31
-0.40
-6.91
-0.40
-4.11
0.76
1.85
0.09
0.96
0.23
0.41
-1.25
-0.39
-0.18
-0.10
...
2.62
-0.02
-1.18
-0.14
-0.42
-0.35
-0.41
-2.70
-0.66
-0.71
-0.24
0.27
0.11
0.20
-0.63
-1.72
0.26
-1.07
-0.06
0.64
-0.94
1.81
-0.02
-0.63
0.37
-0.70
0.24
0.42
-0.29
1.57
-0.03
-0.02
-0.33
-0.08
0.17
-1.70
0.13
0.38
-1.33
-0.40
-0.85
0.34
-1.02
-0.11
0.25
2.45
1.75
0.90
1.58
...
-0.86
-0.89
-3.09
-2.09
0.11
0.15
0.32
-1.15
-1.31
-2.44
0.25
-2.23
0.68
-2.19
0.81
-0.47
0.24
-0.59
-0.03
-1.25
-1.86
-0.41
-0.46
0.28
0.08
0.30
-0.58
-0.66
-0.77
-0.51
-0.53
-1.35
-1.47
0.04
-0.42
-1.10
0.33
-0.75
Stock
Net
Sym Close Chg
MarketAxess MKTX 173.94
Marriott
MAR 123.06
MarvellTech MRVL 20.12
MatchGroup MTCH 29.39
Mattel
MAT 18.54
MaximIntProducts MXIM 53.66
MelcoResorts MLCO 24.64
MercadoLibre MELI 262.49
MicrochipTech MCHP 91.01
s MicronTech MU 45.80
Microsemi MSCC 52.91
Microsoft MSFT 84.05
t Middleby
MIDD 110.64
Momo
MOMO 29.19
Mondelez MDLZ 42.53
s MonsterBev MNST 62.63
Mylan
MYL 37.85
NXP Semi NXPI 115.50
Nasdaq
NDAQ 75.97
NatlInstruments NATI 44.38
NektarTherap NKTR 39.56
NetApp
NTAP 45.62
Netease
NTES 298.56
Netflix
NFLX 195.71
Neurocrine NBIX 74.17
NewsCorp B NWS 15.55
NewsCorp A NWSA 15.27
Nordson
NDSN 125.28
NorthernTrust NTRS 92.64
NorwegCruise NCLH 55.10
NVIDIA
NVDA 214.18
OReillyAuto ORLY 215.89
OldDomFreight ODFL 119.03
ON Semi
ON 21.42
OpenText OTEX 33.23
PTC
PTC 64.28
Paccar
PCAR 68.67
PacWestBancorp PACW 44.94
Paychex
PAYX 65.37
PayPal
PYPL 74.49
People'sUtdFin PBCT 18.28
PilgrimPride PPC 34.24
Priceline
PCLN 1719.50
Qiagen
QGEN 30.85
Qorvo
QRVO 78.41
Qualcomm QCOM 66.00
RandgoldRscs GOLD 92.07
RegenPharm REGN 384.80
RossStores ROST 64.47
RoyalGold RGLD 85.96
Ryanair
RYAAY 112.41
SBA Comm SBAC 165.53
SEI Investments SEIC 64.91
Sina
SINA 106.50
SS&C Tech SSNC 39.77
SVB Fin
SIVB 213.28
ScrippsNetworks SNI 78.07
Seagate
STX 37.49
SeattleGenetics SGEN 57.20
Shire
SHPG 139.27
SignatureBank SBNY 131.02
SiriusXM
SIRI 5.35
Skyworks SWKS 111.21
Splunk
SPLK 68.35
Starbucks SBUX 56.93
SteelDynamics STLD 36.55
Symantec SYMC 28.10
s Synopsys SNPS 87.76
TD Ameritrade AMTD 49.64
T-MobileUS TMUS 56.54
TRowePrice TROW 94.48
TakeTwoSoftware TTWO 118.88
Tesla
TSLA 308.70
TexasInstruments TXN 96.96
TractorSupply TSCO 61.65
Trimble
TRMB 41.30
21stCenturyFoxA FOXA 28.03
21stCenturyFoxB FOX 27.31
UltaBeauty ULTA 199.05
UltSoftware ULTI 198.37
UnivDisplay OLED 177.45
VEON
VEON 3.79
s VeriSign
VRSN 111.17
VeriskAnalytics VRSK 91.11
VertxPharm VRTX 147.82
Viacom B VIAB 24.54
Viacom A VIA 29.95
s Vodafone VOD 30.48
t WPP
WPPGY 85.02
WalgreensBoots WBA 70.59
s Weibo
WB 112.21
WesternDigital WDC 91.58
WillisTowers WLTW 162.03
Workday
WDAY 107.47
WynnResorts WYNN 153.60
Xilinx
XLNX 72.05
Yandex
YNDX 31.25
ZebraTech ZBRA 104.99
Zillow C
Z
39.07
Zillow A
ZG 39.28
ZionsBancorp ZION 46.49
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
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-0.58
2.67
-0.01
0.70
0.90
0.20
-0.49
-4.59
-0.01
0.20
0.29
0.12
1.48
-0.69
0.48
0.43
0.28
-0.15
0.56
-0.27
2.46
-0.38
-3.60
0.63
-0.47
-0.05
0.04
1.47
0.18
-0.17
1.55
1.72
0.79
-0.16
-0.18
-0.30
-0.65
-0.26
0.27
0.46
0.07
0.20
-2.65
0.08
-0.67
-0.49
1.50
-8.82
-0.44
-0.43
1.00
0.33
0.24
0.35
-0.04
1.02
-0.81
-0.17
0.08
0.95
3.83
-0.15
0.91
0.61
0.29
-0.80
0.13
-0.06
-0.08
0.10
1.07
0.62
-6.70
-0.07
0.32
0.31
-0.52
-0.51
1.02
0.37
0.40
0.07
-0.01
0.99
-0.21
-0.18
-0.20
1.63
0.20
0.22
3.63
3.14
0.54
1.30
-1.64
0.07
-0.37
0.05
-0.05
0.08
1.22
48.50
27.59
26.13
31.32
-0.78
-0.12
-0.27
-0.30
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.
B16 | Wednesday, November 15, 2017
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23409.47 t 30.23, or 0.13%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.12 20.63
P/E estimate *
19.22 17.66
Dividend yield
2.21
2.47
All-time high 23563.36, 11/08/17
Nasdaq Composite Index
Last
2578.87 t 5.97, or 0.23%
High, low, open and close for each
trading day of the past three months.
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
Last Year ago
6737.87 t 19.72, or 0.29%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.13
23.37
P/E estimate *
21.32
18.87
Dividend yield
1.04
1.24
All-time high: 6789.12, 11/08/17
Current divisor 0.14523396877348
23500
2580
6750
23000
2550
6650
22500
2520
6550
22000
2490
6450
2460
6350
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
21500
65-day moving average
65-day moving average
6250
2430
21000
Bars measure the point change from session's open
Sept.
Oct.
6150
2400
20500
Aug.
Aug.
Nov.
Sept.
Oct.
Aug.
Nov.
Sept.
Oct.
Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
9514.94
9468.55
-0.13
23563.36 18867.93
23.7
18.5
9.9
10038.13
8749.08
7.7
4.9
1.5
Most-active issues in late trading
774.47
626.66
21.9
17.4
9.7
26830.60 22616.13
691.56
575.45
17.7
17.9
14.6
12.9
7.9
7.9
% chg
774.71
761.94
Utility Average
Total Stock Market
Barron's 400
9489.18 -29.66
774.47
High
1.19
9.08
-0.24
26673.25 26553.28 26664.02 -63.71
679.70
676.77
679.37 -0.57
Nasdaq Stock Market
Nasdaq Composite
6743.63
Nasdaq 100
6300.46
Standard & Poor's
500 Index
6709.27
6263.77
2579.66
-0.08
-0.29
6737.87 -19.72
6293.64 -22.54
2566.56
2578.87
-5.97
52-Week
Low
6789.12
6345.81
-0.36
-0.23
2594.38
MidCap 400
SmallCap 600
1828.73
895.48
1822.21
891.24
1826.80
894.74
-2.13
-0.30
-0.12
-0.03
1843.36
918.72
Other Indexes
Russell 2000
1474.27
1465.38
1471.26
-3.81
-0.26
1512.09
NYSE Composite
-0.30
12316.83 12238.08 12280.11 -36.71
537.20
534.52
NYSE Arca Biotech
4076.95
3997.74
NYSE Arca Pharma
Value Line
535.90
% chg
533.64
530.01
532.52
-0.19
KBW Bank
98.75
97.76
0.49
PHLX§ Gold/Silver
98.72
80.46
79.52
-0.41
PHLX§ Oil Service
80.00
137.38
132.69
132.82
1308.54
12.61
1295.41
11.45
1305.00
11.59
PHLX§ Semiconductor
CBOE Volatility
-0.92
-0.04
0.49
-0.51
-5.31 -3.84
-0.12
-1.58
0.09
0.78
Philadelphia Stock Exchange
% chg
3-yr. ann.
YTD
2176.94
25.2
29.4
12.8
14.2
18.3
15.2
1595.53
795.17
14.5
12.5
10.0
6.8
8.5
9.6
1302.14
13.0
8.4
7.8
8.1
Volume
(000)
Symbol
YTD
% chg
–0.28
–0.20
–0.17
16.2
17.5
20.3
DJ Americas
618.91
–0.32
–2.00
Sao Paulo Bovespa 70826.59 –1648.58 –2.27
S&P/TSX Comp
15913.13 –113.13 –0.71
S&P/BMV IPC
–0.27
47873.65 –128.78
Santiago IPSA
–0.53
4026.32
–21.50
14.5
17.6
4.1
4.9
24.9
Close
Net chg
2942.56
383.06
257.33
The Global Dow
DJ Global Index
DJ Global ex U.S.
–8.16
–0.77
–0.43
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
383.86
387.08
3984.63
5315.58
13033.48
1411.82
22297.08
541.73
1136.86
9990.40
579.12
9130.48
7414.42
–2.27
–1.62
–22.94
–26.05
–40.94
–6.66
–140.56
–3.70
–11.93
–59.50
0.18
–32.26
–0.76
–0.59
–0.42
–0.57
–0.49
–0.31
–0.47
–0.63
–0.68
–1.04
–0.59
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5968.70
Shanghai Composite 3429.55
Hang Seng
29152.12
S&P BSE Sensex
32941.87
Nikkei Stock Avg
22380.01
Straits Times
3399.09
Kospi
2526.64
Weighted
10687.18
–53.10
–18.29
–30.06
–91.69
–0.98
–20.04
–3.71
3.26
–0.88
–0.53
–0.10
–0.28
–0.004
–0.59
–0.15
Net chg
After Hours
% chg
High
-0.12
9,248.0 257.61
Bank of America
BAC
5,774.0
26.32
0.08
0.30
26.32
26.17
Pfizer
PFE
2,287.0
35.43
0.05
0.14
35.51
35.28
VanEck Vectors Jr Gold GDXJ
2,223.8
31.67
…
unch.
31.69
31.65
Time Warner
TWX
2,164.3
87.20
-0.31
-0.35
87.80
86.66
Ford Motor
F
2,138.3
12.02
…
unch.
12.04
12.00
Cisco Systems
CSCO
2,022.7
34.09
0.05
0.15
34.10
33.91
Intel
INTC
1,906.1
45.78
-0.08
-0.17
45.90
45.54
-0.05 258.36 257.37
Percentage gainers…
SORL Auto Parts
SORL
849.9
8.15
2.16
36.06
8.88
6.11
Quarterhill
QTRH
12.3
2.00
0.33
19.76
2.00
1.75
Synacor
SYNC
16.2
2.55
0.25
10.87
2.55
2.50
CarGurus Cl A
CARG
96.8
32.95
3.13
10.50
36.00
29.00
Amyris
AMRS
108.7
3.38
0.21
6.62
3.52
3.10
2.75
14.3
11.1
4.1
545.98
492.69
8.7
5.9
2.6
4304.77
3075.02
17.5
31.6
7.5
560.52
463.78
9.4
10.6
-0.1
...And losers
102.31
83.90
15.3
7.6
10.7
TRACON Pharmaceuticals TCON
15.3
2.75
-0.25
-8.33
3.00
96.72
73.03
-2.9
1.4
4.1
Achillion Pharm
ACHN
64.9
3.41
-0.28
-7.59
3.85
3.19
192.66
117.79
-19.7
-27.7 -18.3
MACOM Tech Solutions MTSI
196.5
34.70
-1.91
-5.22
36.61
28.56
44.0
-17.5
Diana Containerships
DCIX
5.4
6.60
-0.34
-4.90
7.00
6.60
Yirendai ADR
YRD
35.7
39.80
-1.95
-4.67
43.75
39.28
1321.13
16.04
836.79 53.9
9.14 -13.3
26.4
-4.5
6.2
10.5
10.5
9.3
13.5
–4.0
15.9
12.1
–1.3
6.8
8.3
11.1
3.8
0.03
–0.35
–0.01
5.3
10.5
32.5
23.7
17.1
18.0
24.7
15.5
0.03
Company
Symbol
Veritone
Ossen Innovation ADR
Remark Holdings
Buffalo Wild Wings
Aviat Networks
VERI
Servotronics
Kulicke Soffa Inds
Image Sensing Systems
Phoenix New Media ADR
Advance Auto Parts
SVT
Intl Game Technology
Ominto
Famous Dave's of America
SemiLEDS
Evolving Systems
IGT
High
52-Week
Low
% chg
74.92 7.76
3.61 1.50
5.10 1.93
175.10 95.00
24.14 9.25
...
23.6
9.1
-11.4
54.1
Energy XXI Gulf Coast
Network-1 Technologies
China Recycling Energy
Netshoes (Cayman)
NCS Multistage
EXXI
10.75 1.91
28.52 4.83
3.35 0.50
6.29 0.92
95.72 13.44
21.55
20.39
17.72
17.13
16.33
12.10 8.50
28.71 14.25
4.10 2.65
6.87 2.43
177.83 78.81
17.9
96.8
-5.6
63.4
-41.8
Calithera Biosciences
China Lending
China Zenix Auto Intl ADR
Qualstar
Synergy Pharmaceuticals
CALA
27.45
3.70
4.45
2.80
4.55
15.09
14.91
14.10
13.20
12.35
32.07 17.25
23.05 2.57
6.60 3.38
5.49 1.61
5.70 3.80
-7.7
17.5
-10.1
-31.3
15.2
Aqua Metals
TransEnterix
Tandem Diabetes Care
ARC Group Worldwide
Cambium Learning Group
AQMS
ISNS
FENG
AAP
OMNT
DAVE
LEDS
EVOL
3.60
0.48
0.55
0.33
0.50
Most Active Stocks
Company
Symbol
General Electric
Roku Cl A
iShares MSCI Emg Markets
Bank of America
Finl Select Sector SPDR
GE
SPDR S&P 500
ProSharesUltVIXST
iPath S&P 500 VIX ST Fut
JD.com ADR
Petroleo Brasileiro ADR
SPY
ROKU
EEM
BAC
XLF
UVXY
VXX
JD
PBR
Selected rates
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
Volume % chg from Latest Session
(000) 65-day avg Close % chg
310,684
56,539
55,908
55,718
53,939
403.3
487.3
16.5
-13.3
4.1
51,897
40,491
39,923
38,058
36,520
-18.6
47.2
25.9
140.1
144.0
17.90
36.95
45.88
26.24
26.11
-5.89
-13.49
-0.67
-0.61
-0.04
t
30-year fixed-rate
mortgage
3.00
2.00
t
1.00
0.00
D J FMAM J J A S O N
2017
3.00
America Mortgage LLC
Monroe, WA
Tuesday
3.88%
425-345-0467
Cache Valley Bank
Logan, UT
3.88%
435-753-3020
Family Federal Savings
Fitchburg, MA
3.88%
978-353-0000
t
10-year Treasury
note yield
Langley Federal Credit Union
3.75%
Newport News, VA
800-826-7490
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.40
1.42
Money market, annual yield
0.33
0.32
Five-year CD, annual yield
1.48
1.49
30-year mortgage, fixed†
3.87
3.92
15-year mortgage, fixed†
3.22
3.30
Jumbo mortgages, $424,100-plus† 4.26
4.26
Five-year adj mortgage (ARM)† 3.52
3.44
New-car loan, 48-month
3.02
3.00
HELOC, $30,000
5.06
4.41
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
4.41
1.25
4.25
1.42
0.36
1.49
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.19
-0.11
-0.05
-0.15
0.06
-0.04
-0.03
-0.24
0.04
257.73 -0.23
16.41 1.17
35.16 0.74
38.90 -5.90
9.68 -8.85
5
0
1.50
–5
0.75
–10
0.00
–15
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
-2.33
-0.70
-0.40
-1.58
-0.41
-19.83
-19.19
-18.87
-17.31
-16.80
20.05
8.30
2.32
13.20
7.15
2.90
2.00
1.02
2.62
2.01
180.6
-60.5
57.8
118.8
-64.5
3.00
2.69
2.51
2.07
5.87
-0.58
-0.50
-0.46
-0.37
-1.03
-16.20
-15.67
-15.49
-15.12
-14.93
22.75
5.00
32.50
5.95
7.30
2.98
0.45
2.15
2.00
4.25
-73.6
62.0
-86.8
-48.4
17.4
ZX
QBAK
SGYP
TRXC
TNDM
ARCW
ABCD
Ranked by change from 65-day average*
Symbol
GOLF
IQDY
EXXI
CNCR
KBWR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
-0.15
-0.50
-0.65
-0.04
0.00
6.56
9.90
30.64
25.90
9.80
17.63 0.92
27.62 -0.28
5.49 -34.25
23.59 -2.15
53.30 0.31
52-Week
High
Low
8.45 5.85
9.97 9.39
31.21 21.26
26.43 24.24
10.43 8.97
22.31
28.22
35.96
28.70
58.72
15.16
22.72
5.32
20.76
47.64
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
s Euro
s Yen
52-Week
High
Low
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Total Return (%)
52-wk
3-yr
2.174
2.103
2.237
1.818
1.626 1.917
2.381
3.169
2.670
n.a.
2.910
n.a.
2.309
3.074
2.580
5.251
2.820
1.935
2.609
3.390
2.790
n.a.
3.120
n.a.
2.058
2.879
2.380
n.a.
2.650
n.a.
1.006
4.507
2.706
n.a.
1.777
n.a.
795.879
5.655
5.618
6.290
5.279
8.893 5.596
1.696
3.768
2.329
n.a.
2.033
n.a.
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0572 17.4822 10.2
Brazil real
.3018 3.3131 1.8
Canada dollar
.7855 1.2731 –5.3
Chile peso
.001583 631.80 –5.7
Ecuador US dollar
1
1 unch
Mexico peso
.0522 19.1685 –7.6
Uruguay peso
.03420 29.2400 –0.4
Venezuela b. fuerte .098262 10.1769 1.8
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
Asia-Pacific
2017
Yield (%)
Last Week ago
Country/currency
Australian dollar
.7632 1.3103
China yuan
.1507 6.6361
Hong Kong dollar
.1282 7.8026
India rupee
.01529 65.421
Indonesia rupiah .0000738 13552
Japan yen
.008814 113.46
Kazakhstan tenge .003009 332.37
Macau pataca
.1247 8.0188
Malaysia ringgit
.2384 4.1940
New Zealand dollar
.6877 1.4541
Pakistan rupee
.00950 105.250
Philippines peso
.0196 51.139
Singapore dollar
.7359 1.3589
South Korea won .0008964 1115.52
Sri Lanka rupee
.0065100 153.61
Taiwan dollar
.03321 30.112
Thailand baht
.03028 33.030
Vietnam dong
.00004403 22713
Commodities
–5.6
–4.4
0.6
–3.7
0.2
–3.0
–0.4
1.3
–6.5
0.7
0.8
3.1
–6.1
–7.7
3.5
–7.2
–7.8
–0.3
.04609 21.698 –15.5
.1586 6.3068 –10.8
1.1799 .8476 –10.8
.003784 264.28 –10.2
.009669 103.42 –8.4
.1222 8.1801 –5.4
.2778 3.5999 –14.0
.01654 60.462 –1.3
.1191 8.3950 –7.8
1.0108 .9893 –2.9
.2573 3.8858 10.3
.0378 26.4530 –2.3
1.3165 .7596 –6.2
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6466 .3778 0.2
.0566 17.6590 –2.6
.2828 3.5359 –8.1
3.3068 .3024 –1.1
2.5968 .3851 0.03
.2640 3.788 4.0
.2666 3.7504 –0.01
.0696 14.3679 4.9
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.38 –0.35–0.40 –5.98
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
9.40
2.94
1.72
7.55
2.03
CLDC
1349
1053
1000
942
918
1458.494
EMBI Global, J.P. Morgan
...
8.3
160.8
...
...
4,816
63
2,569
209
214
10-yr Treasury, Ryan ALM 1728.788
DJ Corporate
377.198
Aggregate, Barclays Capital 1936.770
High Yield 100, Merrill Lynch
n.a.
Fixed-Rate MBS, Barclays 1985.020
Muni Master, Merrill
n.a.
Treasury, Ryan ALM
35.96 5.32
5.05 2.60
9.39 0.95
26.96 6.86
29.07 15.01
Acushnet Holdings
FlexShares Dividend Dyn
Energy XXI Gulf Coast
Loncar Cancer Immun ETF
PS KBW Regional Bk
259.35 216.80
268.80 14.56
125.30 33.11
48.99 25.25
11.71
7.61
WSJ Dollar index
30
-34.25
-32.95
-27.99
-27.65
-22.18
10464
4150
2378
2040
1656
10%
2.25
Close
NCSM
52-Week
Low
% chg
-2.86
-1.45
-1.50
-2.66
-4.60
1,296
411
251
2,911
439
Corporate Borrowing Rates and Yields
Bond total return index
NETS
High
5.49
2.95
3.86
6.96
16.14
TI.A
Telecom Italia ADR
Natl Energy Svcs Reunited NESR
WisdomTree Emg Mkts xSOEXSOE
REET
iShares Global REIT ETF
HCAC
Hennessy Cap III
17.46
15.75
33.94
19.60
21.79
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
CREG
Latest Session
Close Net chg % chg
32.38
48.80
46.87
27.98
26.93
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
Garden State Home Loans
3.75%
Cherry Hill, NJ
609-216-7912
NYSE Arca
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
Company
Forex Race
notes and bonds
t
4.00%
Nasdaq
Total volume*1,952,066,129 220,516,678
Adv. volume* 826,126,249 62,337,167
Decl. volume*1,091,194,355 156,335,996
Issues traded
3,061
1,318
Advances
1,309
423
Declines
1,613
860
Unchanged
139
35
New highs
69
29
New lows
99
35
Closing tick
227
13
Closing Arms†
1.07
1.24
Block trades*
7,375
1,155
52-Week
High
Low
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.92%
Bankrate.com avg†:
NTIP
Volume Movers
s
U.S. consumer rates
Symbol
37.74
33.49
29.62
23.97
23.88
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
28.98 7.94
2.83 0.71
MARK
4.81 1.10
BWLD 145.35 28.10
AVNW 15.98
3.08
OSN
KLIC
Total volume* 840,227,769 12,774,347
Adv. volume* 268,490,083 2,126,300
Decl. volume* 564,265,267 10,520,678
Issues traded
3,078
334
Advances
1,218
103
Declines
1,763
215
Unchanged
97
16
New highs
113
4
New lows
129
15
Closing tick
97
28
Closing Arms†
1.50
2.62
Block trades*
7,335
118
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS & CURRENCIES
WSJ
.COM
Low
SPY
Sources: SIX Financial Information; WSJ Market Data Group
Interest rate
Last
SPDR S&P 500
Percentage Gainers...
Latest
% chg
Region/Country Index
Americas
Brazil
Canada
Mexico
Chile
27.7
32.1
Company
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
5251.11
4734.10
12430.52 10699.43
-0.24
-1.30
4045.25 -37.68
Volume, Advancers, Decliners
-0.31
Net chg
23414.08 23271.57 23409.47 -30.23
Transportation Avg
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Dow Jones
Industrial Average
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
608.33
-8.25
189.06
55.70
3.102
1281.50
-2.39
-1.06
-0.065
4.20
-1.34
616.58
532.01
-1.25 195.14
57.35
-1.87
3.93
-2.05
0.33 1346.00
166.50
42.53
2.56
1127.80
% Chg
12.92
YTD
% chg
7.24
3.27 -1.79
3.69
21.59
14.51 -16.70
4.70 11.43
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.
Wednesday, November 15, 2017 | B17
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1030
3.1030
3.0450
3.0600 –0.0515
Nov
Dec
3.1240
3.1285
3.0485
3.0650 –0.0515
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
1276.90 1279.10
1276.90 1281.50
4.20
Dec
1278.90 1283.80
1269.70 1282.90
4.00
Feb'18
1282.90 1288.10
1274.40 1287.30
4.00
April
1285.10 1292.00
1279.00 1291.60
4.00
June
1289.80 1296.10
1283.00 1295.90
4.00
Dec
1303.80 1308.80
1296.80 1308.80
3.90
Palladium (NYM) - 50 troy oz.; $ per troy oz.
989.75
997.25
973.25
985.55 –4.15
Dec
March'18 982.75 990.65
967.30
979.75 –4.30
June
982.20
982.25
980.60
973.75 –4.15
Platinum (NYM)-50 troy oz.; $ per troy oz.
928.30
928.70
928.30
924.10 –8.30
Nov
Jan'18
934.70
935.70
923.00
927.30 –8.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.905
16.905
16.905
17.052 0.029
Nov
Dec
17.060
17.095
16.860
17.073 0.026
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
56.72
56.77
54.81
55.70 –1.06
Dec
Jan'18
56.96
56.98
55.00
55.89 –1.08
Feb
57.10
57.13
55.15
56.03 –1.10
March
57.26
57.26
55.30
56.16 –1.11
June
57.11
57.15
55.24
56.07 –1.11
Dec
55.60
55.61
53.79
54.54 –1.06
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.9340
1.9346
1.8824
1.9070 –.0251
Dec
Jan'18
1.9367
1.9380
1.8870
1.9111 –.0242
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7881
1.7886
1.7325
1.7612 –.0317
Dec
Jan'18
1.7761
1.7806
1.7251
1.7531 –.0301
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
3.141
3.149
3.064
3.102 –.065
Dec
3.239
3.238
3.197
2.963
2.943
Jan'18
Feb
March
April
May
Open
interest
510
116,969
Contract
High hilo
Low
3.245
3.248
3.206
2.963
2.943
Settle
3.163
3.166
3.130
2.922
2.903
Open
interest
Chg
3.203
3.205
3.165
2.947
2.928
–.059 289,541
–.060 98,763
–.057 183,665
–.027 123,760
–.022 93,023
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
342.00
342.25
t 337.25
337.50 –4.75
Dec
March'18 354.50 354.75
t 350.00
350.50 –4.50
Oats (CBT)-5,000 bu.; cents per bu.
Dec
274.00
276.75
272.75
276.25
2.75
March'18 284.25 286.75
282.50
286.25
3.25
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
966.00
967.25
958.50
959.00 –4.50
Jan'18
974.75
977.50
967.00
967.75 –6.50
Soybean Meal (CBT)-100 tons; $ per ton.
311.60
312.50
309.60
310.30 –1.00
Dec
Jan'18
313.80
314.60
311.60
312.30 –1.10
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
34.33
34.40
34.01
34.01
–.32
Jan'18
34.48
34.55
34.15
34.16
–.32
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1115.50 1126.50
1115.50 1124.00 12.00
Jan'18
1136.50 1153.50
1134.00 1149.50 13.50
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
424.75
429.50
423.25
428.00
3.75
March'18 443.25 446.25
441.00
445.25
2.00
Wheat (KC)-5,000 bu.; cents per bu.
428.25
430.75
425.50
428.00
.50
Dec
March'18 444.75 447.75
442.25
445.25
1.00
Wheat (MPLS)-5,000 bu.; cents per bu.
633.25
635.50
628.25
629.00 –4.25
Dec
March'18 647.00 649.25
642.50
643.00 –4.00
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Nov
158.400 158.475
157.250 157.625 –1.075
Jan'18
156.650 156.875
153.575 153.900 –3.075
71
291,870
167,242
20,384
20,243
11,145
27,869
7,719
408
4
69,890
3
110,412
306,712
529,659
180,506
276,834
230,189
266,100
92,468
112,186
99,664
154,329
128,638
577,104
556,731
3,862
3,614
551
321,484
84,487
110,201
113,691
126,108
12
9,628
173,072
217,437
4,347
29,138
Cash Prices | WSJ.com/commodities
Tuesday, November 14, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Tuesday
Energy
0.9730
1.0496
3.080
3.030
3.150
2.680
2.830
2.360
2.890
59.850
12.100
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Metals
Tuesday
Tuesday
16.9350
12869
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
LBMA Platinum Price PM
*933.0
Platinum,Engelhard industrial
929.0
Platinum,Engelhard fabricated
1029.0
Palladium,Engelhard industrial
993.0
Palladium,Engelhard fabricated
1093.0
Aluminum, LME, $ per metric ton
*2100.0
Copper,Comex spot
3.0600
Iron Ore, 62% Fe CFR China-s
62.8
Shredded Scrap, US Midwest-s,w
276
Steel, HRC USA, FOB Midwest Mill-s
607
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
Fibers and Textiles
Gold, per troy oz
1272.81
1368.27
1274.60
1414.81
*1278.40
*1277.95
1334.22
1347.05
1347.05
1554.79
1260.50
1347.05
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.9900
20.3880
17.0200
21.2750
£12.9200
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
n.a.
0.6785
*79.90
62.000
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
9.1850
7.6650
4.3900
3.8550
5.2950
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Other metals
n.a.
93
3.1000
93.1
483.9
225
88
213
3.0875
368.00
24.00
7.5000
193.09
176.57
0.8612
2.2800
170.00
171.00
74.25
2462
1.2667
1.4528
1.2750
15.55
0.84
66.20
1.3637
0.8983
n.a.
170.88
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
34.8500
0.2500
n.a.
n.a.
0.2700
n.a.
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 11/13
Source: WSJ Market Data Group
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
November 14, 2017
Sept. index
level
U.S. consumer price index
0.53
0.19
246.819
252.941
All items
Core
2.2
1.7
International rates
Week
ago
Latest
52-Week
High
Low
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.18
1.24
U.S.
1.38
0.15
U.S. government rates
1.75
1.75
1.75
1.00
Federal funds
Effective rate
High
Low
Bid
Offer
1.1700
1.3125
1.0500
1.1600
1.1700
1.1700
1.3125
1.0500
1.1600
1.1700
1.2000
1.3125
1.1600
1.1700
1.1900
0.3500
0.5625
0.2500
0.3000
0.3200
3.00
1.32
ENR
.29 /.275 Q
.55911
CLNSpJ
CBA
CEM
EMO
CTR
EGIF
FSIC
BWG
BWG
BWG
SCD
HIPS
SOR
SOR
WBIH
WBII
HYI
HYI
HYI
TLI
TLI
TLI
IGI
IGI
IGI
IGI
DMO
DMO
DMO
MTT
MTT
MTT
SBI
SBI
SBI
10.7
11.2
12.0
10.3
5.5
9.3
7.3
7.3
7.3
9.0
7.5
2.4
2.4
2.6
2.9
7.2
7.2
7.2
6.1
6.1
6.1
4.9
4.9
4.9
4.9
11.0
11.0
11.0
4.6
4.6
4.6
4.3
4.3
4.3
3.00
.20
.355
.32
.29
.073
.19
.0765
.0765
.0765
.31
.1075
.44
.24
.05363
.06088
.09
.09
.09
.053
.053
.053
.02918
.085
.085
.05582
.225
.225
.225
.084
.084
.084
.034
.034
.034
-0.405
-0.381
-0.322
-0.251
-0.372
-0.329
-0.275
-0.190
Value
Traded
-0.366
-0.311
-0.211
-0.071
-0.375
-0.332
-0.276
-0.191
52-Week
High
Low
1.244 42.742 1.366 0.244
1.229 107.850 1.506 0.257
Treasury
MBS
2.25
1.31
1.32
Open Implied
Settle Change Interest Rate
0.67
Company
Payable /
Record
Dec14 /Nov30
Jan16 /Dec29
Funds and investment companies
ClearBridge Amer Engy
ClearBridge Engy MLP Fd
Clearbridge Engy MLP Opp
Clearbridge Engy MLP TR
Eagle Growth & Incm Opps
FS Investment
Legg Mason BW Glbl Incm
Legg Mason BW Glbl Incm
Legg Mason BW Glbl Incm
LMP Cap & Inco Fd
Master Income ETF
Source Capital
Source Capital
WBI Tactical Hi Incm
WBI Tactical Incm Shares
West Asst HY Def Opp Fd
West Asst HY Def Opp Fd
West Asst HY Def Opp Fd
Western Asset Corp Loan
Western Asset Corp Loan
Western Asset Corp Loan
Western Asset Invt
Western Asset Invt
Western Asset Invt
Western Asset Invt
Western Asset Mtg Opp
Western Asset Mtg Opp
Western Asset Mtg Opp
Western Asset Mun Tr Fund
Western Asset Mun Tr Fund
Western Asset Mun Tr Fund
Western Ast Inter Muni Fd
Western Ast Inter Muni Fd
Western Ast Inter Muni Fd
3.00
DTCC GCF Repo Index Futures
Treasury Nov
Treasury Dec
Treasury Jan
1.26350 1.24389 1.26350 0.55011
1.41899 1.40258 1.41899 0.90622
Initial
Colony NorthStar Pfd. J
-0.376
-0.325
-0.214
-0.079
98.815 -0.015 8834 1.185
98.685 -0.005 2043 1.315
98.580 -0.005 450 1.420
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.
Amount
Yld % New/Old Frq
2.6
-0.372
-0.329
-0.275
-0.191
Latest
Libor
Increased
Energizer Holdings
52-Week
high
low
Commercial paper (AA financial)
Dividend announcements from November 14.
Symbol
-0.400
-0.378
-0.314
-0.238
DTCC GCF Repo Index
Dividend Changes
Company
Week
ago
Call money
One month
Three month
Discount
One month
Three month
Six month
One year
Other short-term rates
90 days
Overnight repurchase
-0.399
-0.378
-0.317
-0.251
Euro interbank offered rate (Euribor)
3.493 3.429 3.865 3.253
3.519 3.450 3.899 3.281
Latest
0.00
0.50
0.50
1.50
One month
Three month
Six month
One year
30-year mortgage yields
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
Euro Libor
Secondary market
30 days
60 days
—52-WEEK—
High Low
1.62208 1.59809 1.62208 1.27211
1.89261 1.86844 1.89261 1.60456
Six month
One year
1.045 1.035 1.300 0.305
1.240 1.185 1.240 0.480
1.360 1.300 1.360 0.590
Policy Rates
Euro zone
Switzerland
Britain
Australia
Week
Latest ago
Fannie Mae
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
Treasury bill auction
4 weeks
13 weeks
26 weeks
Q
Q
Q
Q
M
Q
M
M
M
Q
M
Q
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Nov30 /Nov24
Nov30 /Nov24
Nov30 /Nov24
Nov30 /Nov24
Nov30 /Nov20
Jan03 /Dec20
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Nov16 /Nov15
Dec15 /Nov24
Dec15 /Nov24
Nov16 /Nov15
Nov16 /Nov15
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec
Feb'18
120.450
126.450
120.925
126.725
118.775
124.450
Dec
Feb'18
62.400
70.275
62.400
70.300
59.900
67.375
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Chg
Open
interest
119.500 –1.075 75,344
125.150 –1.250 146,471
59.975 –2.325
67.500 –2.800
57,651
91,053
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
468.00
477.70 s
464.00
473.00
5.60
123
Nov
Jan'18
453.60
455.70
448.30
452.50 –3.80
5,582
Milk (CME)-200,000 lbs., cents per lb.
16.83
16.84
16.79
16.82
.02
4,304
Nov
Dec
15.65
15.77
15.59
15.76
.07
4,515
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,195
2,201
2,147
2,149
–59
7,660
Dec
March'18
2,196
2,204
2,152
2,155
–46 138,307
Coffee (ICE-US)-37,500 lbs.; cents per lb.
127.55
129.00
124.25
127.05
–.55 42,177
Dec
March'18 130.70 132.30
127.50
130.45
–.30 110,657
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
15.17
15.18
14.95
15.10
–.03 407,282
March
May
15.04
15.12
14.96
15.10
.06 138,133
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
27.33
27.40
27.30
27.30
.05
2,779
March
May
27.25
27.40
27.20
27.26
.11
1,808
Cotton (ICE-US)-50,000 lbs.; cents per lb.
68.90
69.39
68.58
68.60
–.28 43,342
Dec
March'18
68.94
69.36
68.62
68.65
–.28 129,597
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
…
… s
…
161.40
.80
Dec
Jan'18
160.25
162.00
157.70
161.40
.80
6,710
June
Dec
152-110 153-040
152-050 152-280
15.0 762,195
Dec
March'18 151-040 151-310
151-020 151-240
16.0 43,871
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
124-195 124-265
124-160 124-235
3.5 3,222,704
Dec
March'18 124-100 124-160
124-065 124-140
3.5 74,646
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
116-285 116-312
116-255 116-300
1.5 3,124,399
Dec
March'18 116-212 116-245
116-187 116-230
2.0 83,726
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-170 107-175
107-162 107-167
–.5 1,752,754
Dec
March'18 107-120 107-125
107-112 107-120
–.2 86,609
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.845
98.845
98.843
98.843
… 206,030
Nov
Jan'18
98.615
98.620
t 98.610
98.615
… 342,831
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
100.672 100.906
100.578 100.781
.172 29,414
Dec
1 Month Libor (CME)-$3,000,000; pts of 100%
...
...
... 98.5400
…
2,264
Dec
Eurodollar (CME)-$1,000,000; pts of 100%
98.4675 98.4700
98.4650 98.4675
… 1,729,063
Dec
March'18 98.3000 98.3050
98.2850 98.3000
… 1,338,902
98.1750
98.0100
98.1800
98.0200
98.1600
97.9950
Symbol
Wstrn Asset Emerg Mkts
Wstrn Asset Emerg Mkts
Wstrn Asset Emerg Mkts
Wstrn Asset Gl Def Opp Fd
Wstrn Asset Gl Def Opp Fd
Wstrn Asset Gl Def Opp Fd
Wstrn Asset Glbl Hi Inco
Wstrn Asset Glbl Hi Inco
Wstrn Asset Glbl Hi Inco
Wstrn Asset High Inco II
Wstrn Asset High Inco II
Wstrn Asset High Inco II
Wstrn Asset Mngd Muni
Wstrn Asset Mngd Muni
Wstrn Asset Mngd Muni
Wstrn Asset Muni Hi Inco
Wstrn Asset Muni Hi Inco
Wstrn Asset Muni Hi Inco
Wstrn Asset Muni Ptnrs Fd
Wstrn Asset Muni Ptnrs Fd
Wstrn Asset Muni Ptnrs Fd
Wstrn Asset Opp Fd
Wstrn Asset Opp Fd
Wstrn Asset Opp Fd
Wstrn Asset Var Rate Fd
Wstrn Asset Var Rate Fd
Wstrn Asset Var Rate Fd
EMD
EMD
EMD
GDO
GDO
GDO
EHI
EHI
EHI
HIX
HIX
HIX
MMU
MMU
MMU
MHF
MHF
MHF
MNP
MNP
MNP
HIO
HIO
HIO
GFY
GFY
GFY
Amount
Yld % New/Old Frq
7.9
7.9
7.9
7.7
7.7
7.7
7.7
7.7
7.7
8.0
8.0
8.0
5.3
5.3
5.3
4.1
4.1
4.1
5.0
5.0
5.0
6.7
6.7
6.7
5.4
5.4
5.4
.10
.10
.10
.1135
.1135
.1135
.0635
.0635
.0635
.046
.046
.046
.063
.063
.063
.0255
.0255
.0255
.0625
.0625
.0625
.0275
.0275
.0275
.0775
.0775
.0775
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
M
Payable /
Record
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Dec29 /Dec22
Feb01 /Jan19
Mar01 /Feb16
Stocks
GOL Linhas Aereas ADR
Patrick Industries
Universal Forest Products
5:2
3:2
3:1
GOL
PATK
UFPI
Nov21 /Nov22
Dec08 /Dec11
Nov14 /Nov15
Foreign
Deutsche Bk Contng Cap Tr
Deutsche Bk Contng Cap Tr
DHT Holdings
National Grid ADR
RenaissanceRe Hldgs
Xinyuan Real Estate ADR
DXB
DXB
DHT
NGG
RNR
XIN
6.4
6.4
2.1
3.4
0.9
6.9
WRB
0.8
.40938 Q
.40938 Q
Q
.02
1.0169 SA
Q
.32
Q
.10
Nov24 /Nov22
Feb23 /Feb22
Dec06 /Nov28
Jan10 /Nov24
Dec29 /Dec15
Dec15 /Nov30
Special
WR Berkley
.50
Dec14 /Nov30
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Open
interest
Settle
Chg
98.1750
98.0150
… 1,265,766
.0050 1,663,238
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Dec
March'18
.8814
.8865
.8838
.8882
.8791
.8842
.8830
.8879
.0011 275,587
.0011
4,437
Nov
Dec
.7850
.7854
.7850
.7877
.7850
.7832
.7836 –.0020
1,249
.7858 –.0001 141,295
Dec
March'18
1.3124
1.3175
1.3199
1.3235
1.3086
1.3129
1.3176
1.3218
.0049 170,529
.0049
3,431
Dec
March'18
1.0057
1.0131
1.0141
1.0211
1.0050
1.0123
1.0126
1.0198
.0061
.0061
.7612
.7630
.7611
.7610
.7609
.7647
.7644
.7643
.7643
.7627
.7609
.7610
.7609
.7605
.7609
.7631
.7629
.7628
.7626
.7624
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Dec
Jan'18
Feb
March
June
t
t
Mexican Peso (CME)-MXN 500,000; $ per MXN
.05199
.05218
Dec
March'18 .05126 .05140
Euro (CME)-€125,000; $ per €
1.1686
1.1826
Dec
March'18 1.1755 1.1895
81,746
265
.0008 121,680
.0008
621
.0008
527
.0007
820
.0007
245
.05180
.05104
.05191 –.00007 178,493
.05113 –.00008
618
1.1683
1.1755
1.1815
1.1885
.0126 441,826
.0126
6,327
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Contract
High hilo
Low
Open
23398
23387
23424
23410
23231
23225
S&P 500 Index (CME)-$250 x index
23375
23368
2581.30 2581.90
2564.50 2577.90
Dec
March'18 2573.40 2577.40
2566.40 2578.50
Mini S&P 500 (CME)-$50 x index
2580.25 2582.25
2564.25 2578.00
Dec
March'18 2581.00 2582.50
2565.00 2578.50
Mini S&P Midcap 400 (CME)-$100 x index
1826.80 1828.30
1820.80 1826.60
Dec
March'18 1820.70 1820.70 s 1820.70 1824.70
Mini Nasdaq 100 (CME)-$20 x index
6310.8
6318.3
6262.8
6293.5
Dec
March'18 6327.3 6333.5
6280.0
6309.8
Mini Russell 2000 (ICE-US)-$100 x index
1473.20 1474.40
1464.30 1470.60
Dec
March'18 1468.70 1471.60
1468.70 1471.40
Mini Russell 1000 (ICE-US)-$100 x index
1426.40 1428.30
1422.40 1427.50
Dec
March'18
…
…
… 1428.50
U.S. Dollar Index (ICE-US)-$1,000 x index
94.41
94.44
93.64
93.72
Dec
March'18
94.10
94.10
93.35
93.43
–31 156,503
–31
1,766
–4.00
–3.90
62,256
4,953
–4.00 3,175,524
–4.00 79,827
–2.10
–2.10
93,164
9
–18.5 279,403
–18.3
2,336
–3.10
–3.10
68,352
80
–3.20
–3.20
295
1
–.67
–.66
44,923
2,575
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1985.02
2.2
Mortgage-Backed
1952.05
1.7
Ginnie Mae (GNMA) 2.870 2.570 3.090
3.260 3.030 3.520
1164.24
2.4
Fannie mae (FNMA) 2.920 2.670 3.120
3.6 Intermediate
2.830 2.530 3.010
1792.67
2.5
Freddie Mac (FHLMC) 2.940 2.680 3.130
3818.28
8.6 Long term
4.200 4.100 4.710
n.a.
n.a.
Muni Master
n.a. n.a. n.a.
564.82
3.8 Double-A-rated
2.740 2.470 2.870
n.a.
n.a.
7-12 year
n.a. n.a. n.a.
3.550 3.340 3.870
n.a.
n.a.
12-22 year
n.a. n.a. n.a.
n.a.
n.a.
22-plus year
n.a. n.a. n.a.
3.1 U.S. Aggregate
1936.77
2.670 2.380 2.790
U.S. Corporate Indexes Bloomberg Barclays
5.1
2766.37
2612.47
U.S. Corporate
5.7
713.64
Triple-B-rated
High Yield Bonds Merrill Lynch
2.910 2.650 3.120
n.a.
n.a.
High Yield Constrained n.a. n.a. n.a.
n.a.
n.a.
Triple-C-rated
n.a. n.a. n.a.
543.39
1.2
Global Government 1.440 1.300 1.560
n.a.
n.a.
High Yield 100
n.a. n.a. n.a.
756.30
0.4
Canada
2.020 1.570 2.190
n.a.
n.a.
Global High Yield Constrained n.a. n.a. n.a.
371.87
0.8
EMU§
1.069 0.933 1.363
Europe High Yield Constrained n.a. n.a. n.a.
U.S Agency Bloomberg Barclays
712.10
0.8
France
0.820 0.710 1.210
n.a.
n.a.
Global Government J.P. Morgan†
508.73
-1.1
Germany
0.470 0.210 0.620
1637.87
2.0
U.S Agency
2.050 1.600 2.050
287.95
-0.1
Japan
0.410 0.260 0.460
1464.75
1.2
10-20 years
1.890 1.400 1.890
561.57
-0.8
Netherlands
0.580 0.360 0.760
20-plus years
2.960 2.730 3.460
916.84
U.K.
1.620 1.340 1.790
2.900 2.610 3.090
795.88
7.3
4.5 Yankee
2449.82
0.4
7.7 Emerging Markets ** 5.655 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Week
Latest ago
Chg From (%)
Aug. '17 Sept. '16
Settle
Cattle-Live (CME)-40,000 lbs.; cents per lb.
3354.83
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.
Inflation
Contract
High hilo
Low
Open
90,296
138,654
29,259
30,730
WSJ.com/commodities
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
2.750
2.750
U.S. 2 1.691 t
10 2.383 t
Australia 2 1.842 s
10 2.667 s
0.000
0.750
France 2 -0.577 t
10 0.756 t
l
0.000
0.500
Germany 2 -0.738 t
10 0.399 t
l
0.050
2.050
Italy 2 -0.224 t
10 1.828 t
l
0.100
0.100
Japan 2 -0.179 t
10 0.052 s
l
2.750
1.450
Spain 2 -0.357 t
10 1.521 t
l
0.489 t
1.322 t
l
1.500
2.250
1.750
4.250
U.K. 2
10
l
l
l
l
l
l
l
l
l
Month ago
Year ago
1.695
2.406
1.501
2.277
1.013
2.263
1.805
2.633
1.938
2.803
1.764
2.667
-0.574
0.782
-0.519
0.668
-0.731
0.419
-0.724
0.405
-0.219
1.833
-0.125
2.065
-0.169
0.052
-0.138
0.067
-0.351
1.533
-0.275
1.580
0.493
1.330
0.473
1.373
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
11.0
22.8
75.1
40.3
-226.9
-162.4
-160.0
-144.7
-242.7
-198.7
-162.8
-194.5
-191.5
-55.5
-191.4
-57.3
-90.4
-18.1
-0.214
-187.1
-0.014 -233.2
-0.125 -204.8
1.532 -86.2
-186.5
-235.4
-122.6
-227.7
-204.6
-87.3
-113.7
-73.1
-120.2
-107.6
-81.8
-97.0
15.1
28.4
-0.588 -226.9
0.816
-162.7
-0.616 -242.9
0.318 -198.4
0.109
2.082
0.194
1.293
-120.2
-106.1
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Bank of America
Anheuser–Busch Inbev Finance
Microsoft
Precision Castparts
Manulife Financial
Teva Pharmaceutical Finance
Deutsche Telekom Intl Finance
Enterprise Products Operating
BAC
ABIBB
MSFT
PCP
MFCCN
TEVA
DT
EPD
Maturity
8.000 Jan. 30, ’49
3.650
Feb. 1, ’26
2.650
Nov. 3, ’22
2.500 Jan. 15, ’23
4.061 Feb. 24, ’32
6.150
Feb. 1, ’36
2.485 Sept. 19, ’23
7.034 Jan. 15, ’68
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
n.a.
86
25
n.a.
n.a.
381
n.a.
n.a.
26.24
...
84.05
...
...
…
...
…
–0.61
...
0.14
...
...
…
...
…
33
17
17
15
14
13
13
13
408
159
299
n.a.
95
138
n.a.
43
9.67
71.53
…
102.72
17.90
48.05
57.20
…
–3.49
–0.64
…
–0.76
–5.89
–4.34
0.40
…
Bond Price as % of face value
Current
One-day change
Last week
59
78
22
39
149
375
86
–45
–39
–13
–13
–12
–11
–11
–9
–8
…And spreads that widened the most
Pitney Bowes
Citigroup
Teva Pharmaceutical Fin Netherlands III
Philip Morris International
General Electric
Anadarko Petroleum
Best Buy
Huntington National Bank*
PBI
C
TEVA
PM
GE
APC
BBY
HBAN
4.700
April 1, ’23
6.250 Aug. 15, ’49
2.800 July 21, ’23
2.000 Feb. 21, ’20
5.000 Jan. 21, ’49
5.550 March 15, ’26
5.500 March 15, ’21
2.375 March 10, ’20
537
176
370
37
120
158
70
52
High-yield issues with the biggest price increases…
Issuer
Symbol
Coupon (%)
Eldorado
Envision Healthcare
EP Energy
Navios Maritime Holdings
Hexion
Frontier Communications
Tutor Perini
TPC
ERI
EVHC
EPENEG
NM
6.000
6.250
6.375
8.125
9.000
8.125
6.875
8.750
HXN
FTR
TPC
TPCG
Maturity
April 1, ’25
Dec. 1, ’24
June 15, ’23
Feb. 15, ’19
Nov. 15, ’20
Oct. 1, ’18
May 1, ’25
Dec. 15, ’20
105.500
100.520
57.350
99.125
70.625
99.620
106.250
99.000
4.25
2.27
1.35
1.13
0.88
0.62
0.50
0.50
Stock Performance
Close ($)
% chg
106.251
99.500
59.250
99.813
72.500
101.250
n.a.
n.a.
29.05
28.52
...
1.35
...
6.46
23.85
...
0.87
10.29
...
–14.56
...
–7.18
–2.65
...
108.438
n.a.
97.000
73.500
95.875
90.750
93.375
83.031
...
...
5.71
...
6.46
…
14.40
10.71
...
...
–6.70
...
–7.18
…
–6.07
–4.72
…And with the biggest price decreases
Altice Luxembourg
Riverbed Technology
Nabors Industries
EP Energy
Frontier Communications
Noble Holding International
CenturyLink
Transocean
ATCNA
RVBD
NBR
EPENEG
FTR
NE
CTL
RIG
7.625 Feb. 15, ’25
8.875 March 1, ’23
5.500 Jan. 15, ’23
8.000 Feb. 15, ’25
8.500 April 15, ’20
7.750 Jan. 15, ’24
5.625
April 1, ’25
6.800 March 15, ’38
96.500 –5.09
–3.13
92.875
–2.94
96.530
–2.25
67.500
–2.00
89.250
–2.00
86.500
–1.75
87.000
–1.75
80.250
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B18 | Wednesday, November 15, 2017
* ****
THE WALL STREET JOURNAL.
MONEY & INVESTING
BY LAURA SAUNDERS
Some of the largest fund
companies in the country are
pushing back against a littlenoticed provision in the Senate tax bill they argue will cost
investors millions.
The provision would prevent individual investors and
fund managers from minimizing taxes by choosing specific
shares when they sell part of a
position. Instead, investors
would have to sell their oldest
shares first. The provision
doesn’t affect holdings in taxdeferred retirement plans like
401(k) and individual retirement accounts.
If the provision becomes
law, “markets will work less
well. Our fund managers will
have their hands tied, and our
shareholders will owe more in
taxes,” said Thomas Faust,
chief executive of Eaton
Vance Corp., which manages
more than $419 billion.
The provision included in
the Senate bill requires investors who are selling partial
positions to assume that lots
of securities bought at different prices are sold on a “firstin, first-out,” or FIFO, basis.
The provision would affect index funds and exchange-traded
funds, which are passively
managed, as well as actively
managed ones.
“Vanguard is concerned
with language that requires
funds to sell their oldest
shares first, mostly likely increasing significantly the
amount of taxable distributions made to investors every
year,” a Vanguard spokeswoman said.
Here’s how the provision
works: Say an investor owns
two lots of one stock bought
at different prices, and they
are held in a taxable account.
If the stock is trading at $100
now, each share acquired five
years ago for $60 would have
a $40 taxable gain.
But each share bought two
years ago at $110 would have a
$10 loss.
Current law allows investors, including fund managers,
to choose which shares they
part with. So selling shares
bought for $110 would yield a
loss that could offset other
gains, while selling shares
bought for $60 would produce
a taxable gain.
If the provision takes effect,
the first shares sold would be
deemed to have a cost of $60
each, and an investor couldn’t
sell the $110 shares until all
$60 shares were gone. The
change would take effect for
sales in 2018. It is estimated
to raise $2.7 billion over 10
years.
Supporters of the change
say it would simplify a complex record-keeping issue.
“Having all these choices is
harmful to taxpayers and to
the tax system,” says Steven
Rosenthal, a tax attorney with
the Tax Policy Center. The
summary does contain language that seems to allow
fund investors using “average
cost” to continue. The wording
of the proposed statute isn’t
yet available.
The provision would also
affect taxpayers’ ability to
maximize the value of charitable donations of appreciated
securities. Under current law,
taxpayers often don’t owe
long-term capital-gains tax on
shares they donate while getting a deduction for their full
market value. The best shares
to give may not be the oldest
shares they acquired.
“People who want to maximize tax savings by donating
specific lots that aren’t their
oldest ones should do it before
year-end,” says Robert Gordon
of Twenty-First Securities, a
tax strategist in New York.
Tax Bills Divide Landlords
BY PETER GRANT
The residential real-estate
industry might be panicking
about the Republican-backed
tax overhaul making its way
through Congress, but many in
the commercial real-estate industry are delighted with what
they see so far.
Owners of office buildings,
malls, warehouses and other
commercial property would
benefit from lower taxes on
their profits and would be able
to avoid a 30% limit on deductions for interest expense that
would be imposed on other
businesses, based on two separate bills originating in the
House and the Senate.
The Senate bill, unveiled
last week, also would shorten
the depreciation period for
commercial property to 25
years from 39 years.
Just as important, none of
the provisions that commercial real-estate owners feared
most were included in either
proposal. For example, both
the House and Senate bills
would preserve the muchloved “1031 exchange” provision that enables sellers of
real estate to defer capitalgains taxes by reinvesting the
proceeds in some types of
properties.
Industry executives and lobbyists are cheering. “If the bill
comes together as envisioned
it will be a positive for the underlying economy and that’s
what America needs,” said Jeffrey DeBoer, chief executive of
the Real Estate Roundtable, a
trade group. He pointed out a
number of provisions remain
unclear.
Critics of the tax bills are
using other descriptions: “The
House and Senate bills are
both windfalls for commercial
real estate that boggle my
mind,” said Steven Rosenthal,
a senior fellow with the Tax
Policy Center, a joint venture
of the Urban Institute and the
Brookings Institution.
The commercial property
industry’s favorable reaction
contrasts markedly with the
C-SPAN
Big Fund Firms
Criticize Provision
In Senate Proposal
Bills would offer relief from a tax law Donald Trump criticized before a House committee in 1991.
dismayed voices in the residential real-estate world. Realtors, home builders and other
parties are upset by provisions
they say would eliminate the
tax incentives of homeownership, such as the provision in
the House bill that would reduce the cap on the deduction
The proposals are
seen as favoring
commercial property
over residential.
for residential mortgage debt
to $500,000 from $1 million.
“This bill is a serious step in
the wrong direction,” said Elizabeth Mendenhall, the incoming president of the National
Association of Realtors in a
letter last week to House
members.
Much could change in the
weeks between now and the
end of the year, when the GOP
hopes to complete the biggest
overhaul of the tax code since
the Reagan administration.
The House and Senate bills
vary in many respects, including some provisions that
would affect the commercial
real-estate industry.
Property owners in some
states might benefit more than
others if proposed limitations
on deducting state and local
taxes are enacted, according to
a report by Green Street Advisors. Such a change could result in weaker economies in
high-tax states like New York
and California, reducing demand for space.
Still, the comparatively favorable treatment of commercial property over residential
reflects a sea change in the political and economic priorities
of the Republican Party. Proponents of the House and Senate
bills say the priority of tax
overhaul is to stoke job creation by all businesses including commercial real estate,
that any pain homeowners
might suffer would be made up
for by economic growth and
that unfair tax breaks are being removed.
At the same time, the preferential treatment of commercial property helps rectify
More Americans Feel Like a Million Dollars
BY BRIAN BLACKSTONE
Posh Rodeo Drove in Beverly Hills, Calif. There are more than 15 million U.S.-based millionaires, according to a Credit Suisse study.
rica, for example,” the Credit
Suisse report said.
U.S. households benefited in
particular from their greater
exposure to financial assets
like stocks and bonds, meaning their wealth improves
when the prices of these assets rise—more so than households in other countries.
For the purposes of the
study, Credit Suisse included
the value of financial assets
plus housing and other nonfinancial assets, minus debt. It
also included private pension
fund assets but didn’t include
public pensions.
“So far, the Trump presidency has seen businesses
flourish and employment grow,
though the ongoing supportive
role played by the Federal Reserve has undoubtedly played a
part here as well, and wealth
inequality remains a prominent
issue,” said Michael O’Sullivan,
Credit Suisse’s chief investment officer for international
wealth management.
The report on millionaires
came weeks after Credit
Suisse’s rival, UBS Group AG,
offered a more sobering view
on U.S. billionaires. Although
those ranks rose, too, the
number of Asian billionaires
surpassed those in the U.S.
last year for the first time, led
by China.
SEC Rejects Delaying Surveillance Database
BY DAVE MICHAELS
AND ALEXANDER OSIPOVICH
Wall Street’s top overseer
rejected a last-minute request
from securities exchanges to
delay a vast database of trading information billed as the
most advanced defense against
manipulation and bouts of
market mayhem.
The Securities and Exchange
Commission said late Tuesday
that it wouldn’t agree to delay
Wednesday’s launch of the
Consolidated Audit Trail, a
project regulators accelerated
after they didn’t have enough
data to explain a wild trading
session in May 2010 known as
the flash crash. Exchanges recently launched a lobbying
Deutsche
Bank CEO,
Top Investor
Ease Tension
BY JENNY STRASBURG
FG/BAUER-GRIFFIN/GC IMAGES/GETTY IMAGES
ZURICH—The U.S. may have
ceded its leading position in
the billionaires stakes to Asia,
but it remains the undisputed
king of millionaires.
A report Tuesday from Swiss
banking giant Credit Suisse
Group AG showed that the number of dollar-based millionaires
around the world rose in the
year through mid-2017 by 2.3
million, with nearly half of
them residing in the U.S.
But the news wasn’t as
good for the millennial generation that became adults in
the new century, with their
wealth prospects held back by
factors such as high student
debt, youth unemployment
and frothy housing markets,
the report said.
There were more than 15
million U.S.-based millionaires
in 2017, up 1.1 million from a
year earlier. Globally, there
were just over 36 million of
them.
Japan and the U.K. were a
distant second and third, respectively, though their millionaire ranks fell in the past year
due to declining values in their
currencies, a particular issue for
the U.K. in the wake of Brexit.
“In the post-crisis period,
the source of wealth growth
tilted heavily towards the
United States, opening a wide
gap with Japan and all of Af-
what many in the industry
considered a major affront delivered by the Tax Reform Act
of 1986. That law outraged
many in the industry partly by
limiting the use of so-called
passive losses, like those coming from investments in real
estate by doctors and dentists.
Many in the industry
blamed the recession of the
early 1990s partly on those
changes. In 1991, when Donald
Trump was 45 years old, he
testified before the House Budget Committee that the realestate industry was in “an absolute depression” and that
“one of the reasons we’re there
is what happened in 1986.”
That change eliminated important incentives to invest in
real estate, Mr. Trump said.
“If something isn’t done to
put the incentive back we’re
no different from the Soviet
Union,” he said. “They have no
incentive and we have no incentive.”
The full House and a Senate
committee are expected to
vote this week on the different
plans.
—Richard Rubin
contributed to this article.
campaign to convince the SEC
and lawmakers that the repository would include too much
personal information about
American investors and would
become a target for hackers.
All of the exchanges tasked
with helping build the CAT—including the New York Stock Exchange, Nasdaq Inc. and others—had asked for a one-year
delay of the project. Given the
SEC’s rejection of the delay, the
exchanges won’t comply with
their own plan on Wednesday
when they fail to report trading
data to the audit trail.
Stock-exchange executives
approached the SEC last week
to seek the delay, according to
people familiar with the matter, and formally requested the
extension late Monday.
“I am not in a position to
support the issuance of the requested relief on the terms
currently proposed,” SEC
Chairman Jay Clayton said in a
statement. “I urge the [exchanges] to continue their efforts to work cooperatively
with each other and to meet
their
responsibilities
as
promptly as practicable.”
Mr. Clayton’s statement,
which said the SEC’s talks with
exchanges over the project in
recent days have been “constructive,” suggests the agency
probably won’t seek to penalize the exchanges for missing
the deadlines.
The audit trail, which will
ultimately ingest about 58 bil-
lion daily trading records, has
become a source of friction between regulators, exchanges,
brokers and investors. The biggest exchanges are in the odd
position of talking down a major technology project they are
required to build under a commission-approved plan.
Mr. Clayton, a political independent, said Tuesday that the
SEC would consider whether it
needs access to investors’ personal information. Current
plans call for the database to
store data such as Social Security numbers and dates of
birth of people behind trades,
though these elements aren’t
scheduled to be reported until
a second deadline in November
2018.
The SEC chief’s refusal to
budge on a major deadline for
the long-delayed project drew
praise from SEC Commissioner
Kara Stein, a proponent of
tougher regulation who has
called the CAT the “Hubble
telescope” of the markets.
Ms. Stein, a Democrat, questioned whether exchanges,
which are for-profit companies
but still have legal duties to
oversee fair trading, can still
be relied upon to act as regulatory partners for the SEC.
In their request to postpone
the deadline, which was posted
on a public website on Tuesday,
the exchanges said a delay
would help ensure that certain
essential steps can be taken to
secure the data in the audit trail.
FRANKFURT—There has
been a thaw in Germany.
Deutsche Bank AG Chief
Executive John Cryan met here
last week with the CEO of the
bank’s biggest investor, Chinese conglomerate HNA Group
Co., according to people familiar with the matter.
The meeting between Mr.
Cryan and HNA CEO Adam Tan
was their first, the people said.
It happened one month after
The Wall Street Journal reported on Mr. Cryan’s resistance to engage with HNA.
“We are talking with our
shareholders, not about our
shareholders,” a Deutsche
Bank spokeswoman said.
An HNA spokesman declined to comment, as did a
spokesman for Alexander
Schütz, HNA’s representative
on the Deutsche Bank board.
Previously, Mr. Cryan’s criticism of HNA stoked tensions
with Deutsche Bank Chairman
Paul Achleitner, who this year
helped woo HNA during the
lender’s $8.5 billion capital increase, the Journal reported
last month. HNA lifted its
Deutsche holding during the
capital increase, and in May
disclosed a nearly 10% stake.
Deutsche Bank executives
and investors saw the capital
increase as a crucial move following a string of costly legal
bills and client doubts over the
lender’s financial stability.
Behind the scenes, Mr.
Cryan was critical of HNA in
part because the Chinese company had borrowed billions of
dollars to fund its stake and
protect itself against losses using derivatives, people with
knowledge of his comments
said. Mr. Cryan viewed the
structure as speculative, the
Journal reported.
At the meeting, Mr. Tan expressed support for the
Deutsche Bank CEO and the
lender’s general strategy, one
of the people said. Mr. Tan
suggested the Chinese company could be helpful to
Deutsche Bank with contacts
and insights in China.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Wednesday, November 15, 2017 | B19
* * * *
MARKETS
BY ALISON SIDER
AND NEANDA SALVATERRA
Oil futures tumbled as the
International Energy Agency
lowered its forecast for demand, calling into question a
key element of oil’s recent
rally.
U.S. crude futures fell $1.06,
or 1.87%, to $55.70 a barrel on
the
New
COMMODITIES York Mercantile Exchange on
Tuesday, making for their biggest single-day decline since
Oct. 6. Brent, the global benchmark, fell 95 cents, or 1.5%, to
$62.21 a barrel on ICE Futures
Europe.
Stronger-than-anticipated
demand has been one of the
reasons oil prices have gained
about 20% since early September. But in its closely watched
monthly oil report, the IEA cut
its crude demand-growth outlook by 100,000 barrels a day
for 2017 and 2018, citing the
impact of higher prices and a
mild start to winter. The
agency now expects demand to
grow by 1.5 million barrels a
day this year and 1.3 million
barrels a day next year.
That change, while modest,
could be enough to delay the
process of bringing down an
oil glut, and the new forecast
sparked a selloff that deepened throughout the day, analysts said.
“All year long the IEA has
been revising upward its forecast for demand. Now they’re
tempering that enthusiasm,”
said Andy Lipow, president of
Lipow Oil Associates. “As a result the market is under pressure. The feeling is we need
every bit of growth we can
muster to soak up the oversupply situation.”
Oil prices have hovered
around
multiyear
highs,
buoyed by geopolitical turmoil
in the Middle East and support
from the Organization of the
Petroleum Exporting Countries’ ongoing effort to eliminate about 2% of global supply
with the help of external producers.
But the IEA said that if the
supply disruptions and geopolitical tensions that have
helped fuel higher prices prove
to be temporary, “a fresh look
at the fundamentals confirms
the view we expressed last
month that the market balance
in 2018 does not look as tight
as some would like, and there
is not in fact a ‘new normal’ ”
for prices above $60.
At current production levels
global stocks will be unchanged in 2018, the IEA said.
Commercial petroleum stocks
in the Organization for Economic Cooperation and Development—a group of industrialized, oil-consuming nations,
including the U.S.—fell below
three billion barrels in September for the first time in
two years, but the IEA attributed much of that to the impact of Hurricane Harvey.
Some analysts say the IEA
may be too cautious in its projections.
“We are now projecting
small draws [next year] even
before factoring in an extension of the cuts beyond March
2018,” said Richard Mallinson,
an analyst at consultancy Energy Aspects.
On Wednesday morning,
markets will watch for weekly
EIA data on U.S. oil inventories. Analysts surveyed by The
Wall Street Journal are expecting, on average, to see declines
in both crude-oil and fuel
supplies.
Default Call Sinks Venezuela Debt
Holders face quandary:
Wait or push for a
default process likely
to be very complex?
Venezuelan bonds, already
trading at distressed levels,
fell on Tuesday after creditrating firms declared the naBy Julie Wernau,
Anatoly Kurmanaev
and Kejal Vyas
tion in default on missed interest payments.
The development sets up a
conundrum: Bondholders can
now push for a wave of payments, but some
CREDIT
said they would
MARKETS rather get their
money late than
take
their
chances on what could be one
of the biggest, most complicated defaults in history.
Venezuela’s bonds due 2028
dropped to 24.94 cents Tuesday from 27.15 cents Monday,
according to data provider IHS
Markit. Bonds for state oil
firm Petróleos de Venezuela
SA due in 2035 dropped to
26.625 cents from 29.375, according to IHS Markit. Typically as a bond nears maturity,
its price rises toward 100
cents on the dollar if investors
expect to be repaid.
Despite the country’s diminishing dollar reserves,
Venezuelan President Nicolás
Maduro and his aides have
committed to continue making
payments on the nation’s highyielding bonds, even if they
come late. The cash-strapped
South American nation has
provided some of the best returns in emerging markets in
recent years, complicating the
case for investors to turn up
the pressure on Caracas in the
near term.
“It’s hard to envision a scenario where investors are going
to start accelerating payments,”
said Ray Zucaro, chief investment officer at Miami-based
RVX Asset Management. “As a
bondholder you don’t want to
mess up that gravy train.”
However, Venezuela’s payment delays have made Mr. Zucaro nervous. He said his fund
holds bonds of PdVSA that matured two weeks ago and the
money hasn’t yet turned up in
RVX’s accounts. The Venezuelan government has said the
payment was made but has
been delayed due to banktransfer complications generated by U.S. sanctions.
The Venezuelan government is now trying to shore up
Losing Faith
Investors expected a default in
Venezuela even before this
week’s events.
The cost to insure against a default
in the next year as percentage of
notional value
150%
Venezuelan bonds
125
PdVSA bonds
100
75
50
25
0
J F M A M J J A S O N
Source: Bloomberg data via Bulltick
Capital Markets
THE WALL STREET JOURNAL.
scarce funds to make about
$300 million in late interest
payments by Friday, according
to an official in Caracas familiar with bond transactions.
Interest-payment delays
have been caused by liquidity
shortages as well as problems
executing transfers with U.S.
financial sanctions in place,
the official said, adding the
government is trying to meet
its obligations this year and to
restructure the outstanding
debt in 2018.
“The system is pushing us
towards a unilateral restructuring,” he said. “Our wish is
to continue paying but at this
moment we’re reviewing all
options.”
Venezuela was found in default by S&P Global Ratings
late Monday after it missed
about $200 million in interest
payments on its sovereign
debt. The payments were to
have been made within a 30day grace period that ended
Monday to avoid opening the
door for creditors to organize
and litigate for payment.
S&P said it can still reverse
Monday’s downgrade if Venezuela makes the late payments
before creditors organize and
demand repayment.
Fitch Ratings late Tuesday
joined S&P Global Ratings in
declaring two of Venezuela’s
sovereign bonds in default.
Robert Abad, founder of
emerging-markets advisory
firm EM+BRACE, said that
while many large institutional
investors in these bonds have
given way to speculative investors at this point, the bonds
are still widely held.
“The speculators won’t care
less,” he said. “The big investors who were still there are
trapped in the transom now.”
PdVSA and Venezuela’s Information Ministry didn’t re-
spond to requests for comment.
Meanwhile, holders of Venezuelan credit-default swaps—
insurance-like derivatives—
were trying to make a case
that there has been a “failure
to pay credit event,” according
to a Tuesday morning filing to
the International Swaps and
Derivatives Association. So far
ISDA has pushed off a decision
but was scheduled to meet
again this week.
Mr. Maduro and other Venezuelan government officials
have insisted they will pay off
the country’s debts. But Venezuelan officials provided few
details about how they would
move forward with a planned
debt restructuring during a
brief meeting with bondholders at the presidential palace
Monday afternoon, according
to people who said they were
in attendance.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$156,324,268,800
Applications
$50,000,240,800
Accepted bids
$557,581,300
" noncompetitively
$100,000,000
" foreign noncompetitively
99.918722
Auction price (rate)
(1.045%)
1.060%
Coupon equivalent
80.11%
Bids at clearing yield accepted
912796MG1
Cusip number
The bills, dated Nov. 16, 2017, mature on Dec. 14, 2017.
DADANG TRI/BLOOMBERG NEWS
Oil Falls
On Cut to
Demand
Forecast
A Freeport McMoRan mining complex in Indonesia in 2015. Energy and materials sectors were among big decliners on Tuesday, with Freeport-McMoRan down 4.4%.
Stocks Track Declines in Commodity Prices
BY MICHAEL WURSTHORN
Declines in shares of oiland-gas firms, chemical companies and miners pressured
major stock indexes Tuesday.
The losses tracked a slump
in commodities prices, with
U.S. crude oil
TUESDAY’S posting
its
MARKETS
biggest oneday drop in
more than a
month.
The Dow Jones Industrial
Average shed 30.23 points, or
0.1%, to 23409.47 while the
S&P 500 slid 5.97 points, or
0.2%, to 2578.87. The Nasdaq
Composite fell 19.72 points, or
0.3%, to 6737.87.
The energy and materials
sectors were among the biggest decliners in the S&P 500.
Mike Baele, managing director at U.S. Bank Private
Wealth Management, said the
pullback isn’t a major concern
since the two sectors had been
among the best performers in
recent months. “The synchronized global expansion looks
to be intact, so frankly a little
volatility isn’t a bad thing,” he
added.
U.S. crude slid 1.9% to
$55.70 a barrel after the International Energy Agency
said the oil price rally could
be short-lived and global oil
demand would be weaker than
expected this year and next.
The move pressured energy
shares, with Range Resources
falling $1.23, or 6.6%, to $17.35
and Newfield Exploration
shedding 2.27, or 7.1%, to
29.82. Energy companies in
the S&P 500 fell 1.5%.
Meanwhile, metals miner
Freeport-McMoRan, was off
63 cents, or 4.4% to 13.80, and
chemical company Albemarle,
fell 5.72, or 4%, to 137.65, contributing to a broad decline
among material companies.
Shares of General Electric
continued to reel after Chief
Executive John Flannery outlined a plan on Monday to reorganize the business and cut
its dividend in half. Shares fell
1.12, or 5.9%, to 17.90 on Tuesday and are down 13% over the
past two days.
Utilities in the S&P 500
Waning Influence
The company with the smallest weighting in the Dow Jones
Industrial Average, currently General Electric, has fallen to its lowest
point in years.
Smallest weighting
of Dow components
June 2009
General Motors
removed from
the Dow
1.5%
September 2013
Alcoa removed
from the Dow
GE
0.53%
1.0
0.5
0
2000
’05
Source: WSJ Market Data Group
continued to move higher. The
sector, considered by some investors to be a relatively stable income-producing investment, gained 1.2% Tuesday
after rising 1.2% a day earlier.
Despite major indexes
notching slight gains on Monday, the Dow industrials and
’10
’15
’17
THE WALL STREET JOURNAL.
S&P 500 have traded lower in
three out of the past four sessions, in part because of investors’ concerns about how Republicans will proceed with
their tax overhaul. That has
coincided with signs of stress
in high-yield debt and the
winding down of the third-
quarter earnings season.
“Since Friday, the theme
has been deleveraging and taking risk off the table,” said
Larry Peruzzi, managing director of international equity
trading at Mischler Financial.
“Part of it has been profit-taking and part of it has been uncertainty with taxes and Washington.”
The Stoxx Europe 600 reversed early gains to edge
down 0.6% to its lowest close
since September in its sixth
consecutive session of declines.
At the lunch break Wednesday, Japan’s Nikkei Stock Average was down 0.6%. At the
same time, the Shanghai index
was down 0.4% and the Shenzhen index was off 0.3%.
Recent data show that a
broad measure of money supply in China was lower than
expected, while other data
showed slower industrial output and fixed-asset investment
growth in the country last
month.
—Riva Gold
contributed to this article.
China’s Bond Rout Raises Prospect of Higher Borrowing Costs
BY SHEN HONG
SHANGHAI—China’s 10-year
government-bond
yields
touched 4% for the first time
in years as a domestic bondmarket selloff intensified,
threatening to raise borrowing
costs for a swath of Chinese
companies whose debt levels
have been climbing.
Prices of Chinese bonds
have been tumbling for days,
sending their yields higher.
The 10-year yield briefly hit a
three-year high of 4.01% on
Tuesday before ending the day
at 3.97%.
Domestic
yields
have
climbed since the start of this
year. The 10-year Chinese
bond yield was at 3.1% in January and 3.7% a month ago,
according to S&P Global Market Intelligence.
The latest selloff came despite moves by the People’s
Bank of China to pump a large
amount of cash into the financial system for a second day in
a row. After injecting 150 billion yuan ($22.56 billion) into
the money market Monday,
the central bank added another 140 billion yuan Tuesday.
The rising bond yields
could complicate Beijing’s efforts to reduce risk and leverage in China’s financial system
while maintaining economic
stability.
If companies’ borrowing
costs climb as a result, that
could make it harder for firms
to obtain new loans or refinance existing debt, and weigh
on economic growth.
Beijing’s domestic debt-financing costs are the highest
among major economies, with
the yield on its 10-year domestic bond topping rates in the
U.S., the U.K., Australia, South
Korea and much of Europe.
China’s recently issued U.S.dollar sovereign bonds, meanwhile, traded at a narrow
spread of 0.25 percentage
point over 10-year U.S. Treasury notes and were yielding
2.65% on Tuesday.
Some analysts have pointed
to concerns about rising inflation in China, which could be
driving domestic yields higher.
But others say the bond rout
appears irrational because
other economic data indicate
China’s growth remains under
pressure. Investors are more
likely to buy assets perceived
as safer like government
bonds in times of economic
uncertainty.
Data released in the past
few days on China’s money
supply, factory output and retail sales pointed to slowing
momentum for the world’s
second-largest economy. Still,
stronger U.S. and European
economies are expected to
help keep China’s economy
humming.
Meanwhile, as bond yields
climb, many Chinese companies are facing the prospect of
higher borrowing costs, which
could hamper Beijing’s efforts
to engineer a smooth and
gradual process of reducing leverage in the financial system.
Average yields on China’s
five-year, AAA-rated corporate
bonds, a popular measure of
corporate funding costs, have
soared to 5.19%, the highest
level since September 2014.
The effects haven’t been
felt by most companies so far.
Some debt issuers have put off
plans to sell bonds or turned
to other sources of financing
such as loans from government-linked entities or trusts.
—Chao Deng
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B20 | Wednesday, November 15, 2017
MARKETS
Debt Crisis in Venezuela: What’s Next
By Julie Wernau
Venezuela has been falling behind on debt payments in its prolonged economic crisis.
Some payments have come late. Others haven’t arrived at all. The South American country
has said it wants to restructure its remaining debt, which analysts put as high as $150 billion.
But observers say Venezuela’s debt crisis could be one of the most complicated in history.
Two large principal payments on
PdVSA bonds, which had no grace
periods, arrived late in recent
weeks, according to investors
and ratings firms.
Cash-strapped Venezuela and its
state oil company Petróleos de
Venezuela SA have been putting off
making interest payments on their
debt, taking advantage of 30-day
grace periods to save money.
$2.0 billion
Grace periods on missed interest
payments began to expire Monday,
and Venezuela and PdVSA failed to
pay in time. Some ratings firms
found them in default.
Venezuelan bond payments, by month due*
1.5
PdVSA principal
Venezuela principal
PdVSA interest
Venezuela interest
Elecar
1.0
0.5
0
Oct. ’17
Nov.
Dec.
Jan. ’18
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
When a country defaults, investors typically have a few options
Do nothing
Push for full payment
and hope they
get paid
Trigger CDS
payout
Venezuela has said it will continue
to pay, and some funds are being
deposited even if they’re late enough
to constitute a technical default.
If the payments come in before other
bondholders launch legal battles, the
defaults are “cured,” according to bond
indentures and attorneys, and the
country is protected from creditors
that might seek to seize assets.
Accelerate
bond payments
Holders of credit default swaps—
derivatives that pay out in the event of
a default—are already trying to collect
on the late interest and principal
payments. The International Swaps
and Derivatives Association has put
off making a decision so far and is
scheduled to meet again this week.
Bondholders can organize and vote
to accelerate payment schedules for
their debt. With a threshold of 25%,
the bondholders could trigger
cross-default provisions across
Venezuelan and PdVSA bonds that
require full payment, which amounts
to at least $60 billion in bonds.
Negotiate
Owners of Venezuelan bonds that
haven’t been paid can also bring
individual lawsuits, which allow
them to demand payment from
the government via the courts.
Venezuela’s many and varied creditors could battle to seize assets in lieu
of payment, including the country’s lifeblood: oil. Among the most soughtafter assets are state-owned oil refiner Citgo Holdings Inc., shares of
which were pledged to bondholders and Russian oil producer Rosneft in
exchange for loans.
$142 billion
International reserves
$9.68 billion
Venezuela’s government called
bondholders to a meeting Monday
to discuss the issue. But most major
holders didn’t attend because U.S.
sanctions limit dealings with
Venezuelan officials and prohibit
institutions in the U.S. from trading
new bonds with President Nicolás
Maduro’s government.
The U.S. Treasury, which doled out
the sanctions, has indicated it could
alter its policy if a restructuring plan
is approved by the oppositioncontrolled congress, which has
been diminished by Mr. Maduro’s
increasingly authoritarian rule.
Seize assets
Estimated debt outstanding
to restructure the
outstanding debt
Litigate
*Petróleos de Venezuela SA, or PdVSA, is a state-owned oil company and it controls electricity company Electricidad de Caracas, or Elecar.
Sources: Morgan Stanley/Bloomberg (payments); Moody's Investor Servicet (outstanding debt); Banco Central de Venezuela (reserves)
THE WALL STREET JOURNAL.
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Email: heard@wsj.com
Car Chips Are Driving Infineon
How do you justify an investment in an expensivelooking stock? By setting it
against “peers” that look
more expensive, like Tesla.
Such comparisons, together
with takeover rumors, could
keep electric-vehicle supplier
Infineon Technologies’
stock buoyant for some time.
A spinoff of German industrial giant Siemens, Infineon makes microchips for
all manner of industrial applications, but the one that
has caught investors’ imagination is the electric, selfdriving car. Little wonder:
Revenue from these nascent
automotive technologies increased between 60% and
80% during the year through
September, the company reported alongside annual results Tuesday.
The growth will continue,
management said, but this
will weigh on margins in the
broader automotive business. This is a warning: Car
tech’s growth potential requires massive capital in-
Fast Lane
Forward price/earnings ratios
30 times
Umicore
25
Infineon
STMicro
20
15
10
2014 ’15
’16
’17
THE WALL STREET JOURNAL.
Source: FactSet
vestment even as the companies involved sacrifice
profits for a stake in the new
market. Tesla’s investors
don’t seem to mind, though,
and neither do Infineon’s.
The shares rose 2.7% Tuesday even as the company
flagged slower profit growth.
The stock is up 46% in
2017 and trades at 25 times
forward earnings, a premium
to European chip rival STMicroelectronics. Yet Infineon’s stock doesn’t look expensive relative to other
electric-car plays, such as
battery-cathode producer
Umicore, let alone the giddy
valuation Intel paid for Mobileye this year.
That deal underscored another reason Infineon’s
shares have rocketed: the ev-
ergreen question of a takeover. The company has no
blocking shareholder, and
the chip market continues to
consolidate. Infineon’s rival
in car chips is NXP Semiconductors, which Qualcomm is
in the process of buying for
$39 billion. Qualcomm itself
has a suitor, Broadcom,
which has offered $105 billion.
How the puzzle pieces will
eventually fit together is impossible to predict, but Infineon looks digestible even
with a market value approaching $33 billion and no
net debt. Its latest attempt
to pursue its own consolidation—an $850 million deal to
buy Wolfspeed from U.S.
technology company Cree—
was frustrated this year by
the Committee on Foreign
Investment in the U.S.
As long as the market remains focused on growth
and mergers and acquisitions, this vehicle could keep
speeding.
—Stephen Wilmot
Smaller Banks May Now Dream Big
Congress finally looks set
to deliver some regulatory
relief for midsize lenders.
The biggest beneficiaries will
be even smaller banks with
midsize dreams.
A bipartisan group of senators has agreed to an overhaul plan aimed at helping
regional banks rather than
Wall Street giants. Most notably, it would raise the
threshold under which banks
are subject to additional
scrutiny, including annual
stress-testing, from $50 billion to $250 billion of assets.
This is clearly welcome
news for banks in those size
brackets. Most crucially, bypassing annual exams with
the Federal Reserve would
allow banks to return excess
capital to shareholders more
Primed for Payouts
Estimated excess capital as a
percentage of risk-weighted assets
Comerica
Zions Bancorp
Citizens Financial
4.35%
3.09
2.45
M&T Bank
2.15
CIT Group
2.10
Fifth Third Bancorp
KeyCorp
1.92
1.84
Source: Keefe, Bruyette & Woods
quickly and predictably.
The most overcapitalized
of these banks include
Comerica, Citizens Financial Group, Zions Bancorp
and CIT Group. Stepped-up
share buybacks over a few
years’ time could boost these
banks’ earnings per share by
13% to 17%, according to
Keefe, Bruyette & Woods.
On Monday and Tuesday,
shares of these four lenders
rose an average of 5.1% in response to the Senate plan.
Investors shouldn’t expect
much more of a bump beyond that because this move
has long been expected. Analysts began talking about
raising the $50 billion
threshold as soon as Trump
was elected.
Shares of midsize lenders
have outperformed other
banks for over a year. Even
before this week’s rally, the
four big winners identified
by KBW were up an average
35% since the election, compared with a 30% rise for the
KBW Nasdaq Bank Index.
But raising the threshold
will have another, potentially
more transformational impact. Many even smaller
banks have held back their
growth ambitions, or refrained from big mergers, for
fear of crossing the $50 billion mark. If that threshold
is raised, it would unlock
some lending activity by
banks just below it.
There also could be a
boom in mergers between
banks somewhere in the $10
billion to $50 billion range,
which number more than 50.
The most obvious winners
from the Senate plan are today’s midsize lenders targeted for immediate relief,
but investors should be looking out for the midsize lenders of tomorrow.
—Aaron Back
WSJ.com/Heard
With Tweak, Earnings
Look That Much Better
U.S. companies are about
to close the books on another solid earnings season,
helping sustain high stockmarket valuations. In fact,
underlying corporate earnings are even better than the
headline data suggest.
Operating earnings per
share for S&P 500 companies
were up about 9% from a
year earlier in the third
quarter, according to estimates by strategists at
Credit Suisse Group. That respectable figure still represents a slowdown from 11.6%
growth in the second quarter
and 15.8% growth in the
first.
But billions of dollars in
losses booked by insurance
companies due to three hurricanes and two Mexican
earthquakes distort the data,
says Steve Chiavarone, portfolio manager at Federated
Investors. Without these natural disasters, S&P 500 earnings per share would be up
roughly 12%, he notes.
That would make for
three consecutive quarters of
double-digit-percentage
earnings growth, something
that hasn’t happened since
2011, when corporations
were still bouncing back
from a painful recession.
The technology sector is a
standout performer, with operating earnings per share
rising 22.5% from a year earlier. But it isn’t alone. Other
highly cyclical sectors are
also posting strong growth,
including energy, materials
and industrials.
This is aided by strong
growth not just in the U.S.
but also by synchronous
growth around the world.
About one-third of S&P 500
earnings come from overseas, estimates Credit Suisse
equity strategist Patrick Palfrey.
Of course, should the U.S.
economic cycle turn, these
cyclical sectors will become
among the riskiest places to
be. But the earnings data
give little indication such a
turn is imminent. In fact,
companies appear to be allocating more resources to
capital expenditure and research and development, and
less to shareholder payouts.
This could help extend the
cycle.
Growth is the name of the
game on Wall Street today,
and after looking past the effect of hurricanes, there is
plenty of it to keep investors
happy.
—Aaron Back
OVERHEARD
America is addicted to caffeinated beverages, but the
companies getting rich off the
trend have tripped from time
to time due to their perceived
political leanings. Starbucks is
best known for this, drawing
ire for, among other things, insufficiently Christmassy holiday
cups.
The latest casualty, Keurig
Green Mountain, which is as
dominant in home-brewed coffee as Starbucks is outside the
home, is being boycotted for
pulling ads from a show starring a certain controversial
conservative TV host.
A quick online search shows
that perhaps the most popular
alternative to Keurig’s singleserve machines is made by a
company spun off from its
larger parent just weeks ago,
Hamilton Beach Brands Holding. Shares had languished until last week, but rose 5.1% in
the past two sessions.
Wake up and smell the
gains.
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