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The Wall Street Journal November 16 2017

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THURSDAY, NOVEMBER 16, 2017 ~ VOL. CCLXX NO. 117
* * * * * *
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Shareholder vote count
would give board seat
to Peltz, but company
may contest result
Business & Finance
P
eltz narrowly won a
seat on P&G’s board, an
official tally showed, weeks
after the company claimed
to have defeated the activist
investor in a proxy fight. A1
CFPB head Cordray plans
to leave before the end of
November, paving the way
for Trump to restructure
the consumer watchdog. B1
BY DAVID BENOIT
AND SHARON TERLEP
Nelson Peltz narrowly won
a seat on the board of Procter
& Gamble Co., an official vote
tally showed, an embarrassing
turn of events for a company
that weeks earlier had
claimed to have defeated the
activist investor.
After the most expensive
proxy fight in history, an independent firm’s count of the
roughly 2 billion votes that
were cast found Mr. Peltz had
42,780 more votes than a P&G
director he ran against, the
company said. That is a margin
of 0.0016% of the shares outstanding.
Mr. Peltz quickly claimed a
victory Wednesday and called
on P&G to concede the contest
and let him into its boardroom.
But the Cincinnati giant didn’t
admit defeat, saying Mr. Peltz
“is leading” but that the tally
was still preliminary and subject to a challenge period. P&G
is still deciding whether to
contest the results, a person
familiar with the matter said.
The two sides have been
battling publicly for months
about the best structure and
strategy for the world’s biggest
consumer-products company.
Mr. Peltz, whose Trian Fund
Management has invested
about $3.5 billion in P&G, says
the company needs to streamline it businesses and bring in
outside talent.
EURO $1.1791
YEN 112.87
Vanguard is on pace to
collect a record $350 billion
in investor cash this year, underscoring the growing preference for passive funds. B1
SoftBank is shooting for
a multibillion-dollar stake in
Uber by paying one price to
the company and a lower
one to its shareholders. B2
BY SIOBHAN HUGHES
WASHINGTON—Sen. Ron
Johnson (R., Wis.) said he opposes the Senate Republican
tax package, becoming a GOP
voice of dissent that, if it gains
momentum, could force significant changes or jeopardize
the party’s goal to pass the bill
before the end of the year.
“If they can pass it without
me, let them,” Mr. Johnson
said in an interview Wednesday, adding that the plan unfairly benefits corporations
more than other types of businesses. “I’m not going to vote
for this tax package.”
Any Republican opposition
is significant because GOP
leaders are counting on near
universal support from within
the party to pass a bill on
Tencent reported another blowout quarter, as
Asian tech firms continue to
beat analysts’ estimates. B1
The S&P 500 fell 0.6%, its
biggest drop since early
September. The Dow shed
138.19 points to 23271.28. B13
Japan’s Mitsubishi UFJ
sidestepped a New York investigation into its compliance with U.S. sanctions. B12
Russia threw a lifeline to
Venezuela, restructuring
the $3.15 billion it is owed by
its South American ally. B13
World-Wide
Wisconsin Sen. Johnson
said he opposes the Republican Senate tax plan, becoming
a GOP voice of dissent that,
if it gains momentum, could
force significant changes. A1
Zimbabwe’s Mugabe,
who has ruled the country
for almost four decades,
was confined to a palace as
the military seized control
of state institutions. A1
GOP lawmakers looking
to repeal the ACA insurance
mandate said they were now
more open to a plan to bolster insurance markets. A3
Moore’s lawyer tried to
discredit one of the women
who has accused the Alabama Senate nominee of
sexual misconduct. A4
Tillerson pressed
Myanmar’s leaders to allow an independent probe
into a crackdown against
Rohingya Muslims. A7
China’s move to dispatch a
special envoy to North Korea offers Beijing a chance
to manage frayed ties with
its troublesome neighbor. A7
ASSOCIATED PRESS
Airbus and Boeing
landed aircraft deals from
discount carriers with a list
value of over $75 billion. B2
Target’s sales rose but
profit fell and the firm gave
a disappointing forecast. B3
Armored vehicles blocked streets in Zimbabwe’s capital Harare on Wednesday as the army confined the
country’s 93-year-old president and his wife to a palace after an overnight operation.
Mugabe’s Iron Rule Comes
To an End in Zimbabwe
BY JOE PARKINSON
AND GABRIELE STEINHAUSER
HARARE, Zimbabwe—President Robert Mugabe, who led
the fight to topple white rule in
his country and then held it under his sway for almost four decades, was confined on Wednesday to an opulent blue-roofed
palace as his former military
backers seized control of Zimbabwe’s state institutions.
The generals said their action wasn’t a coup but a restoration of order. But as night fell
Wednesday on the capital of
this southern African country,
the 93-year-old Mr. Mugabe—
the world’s oldest head of
state—and his 52-year old wife,
Grace, were effectively prisoners after an overnight operation
that experts and western diplomats say could herald the president’s ouster.
Soldiers met little resistance
as they secured the city’s airport, government buildings,
state broadcasters and the
president’s residence. Military
officers detained some of Mr.
Mugabe’s top allies, including
the country’s finance minister
and the head of presidential
security. Armored vehicles
Behind autocrat, a first lady
under fire..................................... A8
BY KELLY CROW
A da Vinci portrait of Jesus Christ sold at auction at
Christie’s for a record-shattering $450.3 million. A1
Lebanon’s Hariri accepted an invitation from
Macron to go to France. A9
CHRISTIE’S IMAGES LTD. 2017
The NFL accused Cowboys
owner Jones of trying to sabotage its contract talks with
Commissioner Goodell. B3
>
blocked strategic intersections
in the central and business districts, while the state broadcaster played a loop of patriotic songs and news bulletins.
This week’s power play
comes after 37 years of Mr.
Mugabe’s rule, during which
his status has deteriorated
from revered freedom fighter
to international pariah. Known
as Comrade Bob, the former
schoolteacher oversaw a series
of catastrophic economic overPlease see MUGABE page A8
Da Vinci Sells for $450.3 Million
The Army acknowledged
it failed to submit military
conviction records to federal databases in as many as
one-fifth of all cases. A2
Markets............. B13-14
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News............. A2-6
Weather................... A14
World News........ A7-9
P&G Chief Executive David
Taylor counters that Mr. Peltz
would disrupt a turnaround
that is underway at the maker
of Tide detergent and Gillette
razors after a decade of market-share losses and stagnating
profits. “It’s not the right time
and he’s not the right person,”
Mr. Taylor said before the
vote.
Shares of P&G rose 2.6% in
after-hours trading following
the news of the vote tally.
“Trian strongly urges P&G
to accept the Inspector’s tabulation and not waste further
time and shareholder money
contesting the outcome,” Trian
said in a news release.
A month ago, P&G announced that its preliminary
vote count showed the company’s 11 board nominees were
elected by a margin of 6.15
million votes. The activist had
claimed the vote was too close
to call.
P&G is the biggest U.S. company by market value to face a
proxy contest. The two sides
spent at least $60 million and
crisscrossed the country for
Please see VOTE page A6
GOP Tax Bill
Faces Dissenter
In the Senate
Meredith has lined up financing commitments from
the billionaire Koch brothers
and several banks in pursuit
of a takeover of Time Inc. B1
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
GOLD $1,276.50 g $5.00
New P&G Tally Gives Activist Win
What’s
News
CONTENTS
Business News.. B3,8
Capital Account.... A2
Crossword.............. A14
Heard on Street. B14
Life & Arts....... A11-13
Management.......... B5
HHHH $4.00
WSJ.com
Leonardo da Vinci’s ‘Salvator Mundi’ was only recently rediscovered.
Leonardo da Vinci’s rediscovered portrait of Jesus Christ
sold at auction for $450.3 million, making it the most expensive work of art ever sold.
Christie’s auction house
didn’t identify the winning
bidder of the 500-year-old
painting, “Salvator Mundi,” or
“Savior of the World.”
The estimate for the work
was around $100 million. But
before Wednesday night’s sale
in New York, dealers had wagered the image of an enigmatic Christ dressed in a blue
robe and holding a crystal orb
could sell for far more—given
that da Vinci is a household
name, fewer than 20 of his
paintings survive and this is
the last one deemed by him in
private hands.
The price more than doubled the $179.4 million spent
two years ago for Pablo Picasso’s 1955 “Women of Algiers (Version O).” In private
sales, paintings by Paul Cézanne and Paul Gauguin have
commanded as much as $250
Please see AUCTION page A4
party line votes. With 52
seats in the Senate, Republicans can lose no more than
two votes unless they can
somehow find a way to win
votes from Democrats.
Other Senate Republicans
have expressed concerns. Jeff
Flake of Arizona, for example,
has worried about deficits and
Susan Collins of Maine has
worried about Republican
plans to repeal the insurance
coverage mandate in the Affordable Care Act as part of a
tax overhaul.
Until now, no Senate Republican has come out definiPlease see TAXES page A4
Greg Ip: Tweak to inflation
index could prove costly..... A2
CFPB chief Cordray is leaving
the agency................................... B1
Zombie Companies
Haunt Europe’s
Economic Recovery
Kept alive by banks, shaky firms undersell
healthy rivals and tie up capital
Italian clothing maker and
retailer Stefanel SpA became
famous for its knitted coats
and cardigans.
Many economists, investors and bankers know Stefanel as something starkly
different: a zombie company.
By Eric Sylvers in Ponte
di Piave, Italy, and Tom
Fairless in Hamburg
It has posted an annual loss
for nine of the last 10 years
and restructured its bank
debt at least six times, including several grace periods
when Stefanel only had to
pay interest on what it owed.
After booming during Italy’s post-World War II ex-
pansion, Stefanel and its lumbering factories were
overwhelmed by Spanish
fast-fashion giant Zara and
then battered by the economic slowdown that hit Italy in 2008.
Stefanel is still alive but
staggering. So are hundreds
of other chronically unprofitable, highly indebted companies being kept afloat with
new infusions from lenders
and shareholders, especially
in Southern Europe.
Economists and central
bankers say zombies undercut prices charged by healthier competitors, create artificial barriers to entry and
prevent the flushing out of
Please see ZOMBIE page A10
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A2 | Thursday, November 16, 2017
THE WALL STREET JOURNAL.
* ****
U.S. NEWS
U.S. WATCH
WASHINGTON
ECONOMY
Army Didn’t Submit Consumer Prices
Records of Convicted Edged Up in October
The U.S. Army has failed to
submit military conviction records to federal databases in as
many as one-fifth of all cases,
the Army’s top officer said
Wednesday, allowing those service members to bypass legal
prohibitions against buying and
possessing weapons.
The acknowledgment by Gen.
Mark Milley, the Army chief of
staff, reflected what officials are
concluding is a widespread problem across the military exposed
by the Nov. 5 church rampage in
Texas by Devin Kelley, a former
Air Force member who killed 26
people and injured 20 others.
The Army, from 1998 to 2016,
logged more than 2,400 dishonorable discharges resulting from
convictions in general court-martial proceedings, according to reports submitted to Congress.
Names of defendants in those
cases should have been submitted
to the FBI for inclusion in its national background check system.
That would mean, at a minimum, nearly 500 individuals have
been overlooked in the system,
based on Gen. Milley’s comments.
—Nancy A. Youssef
The soft trend for inflation
persisted in October, but firmer
underlying numbers put the Federal Reserve in a good position
to lift its benchmark interest
rate next month.
The consumer-price index,
measuring what Americans pay
for everything from cars to
phone service, advanced 0.1% in
October from a month earlier,
the Labor Department said
Wednesday. Excluding volatile
food and energy costs, so-called
core prices increased 0.2%.
From a year earlier, consumer
prices rose 2%, the first easing of
year-over-year gains since June.
When excluding food and energy,
prices rose 1.8% from a year earlier.
That was the strongest annual gain in core prices since
April, and could give confidence
to policy makers considering if
the economy is prepared for third
increase in the central bank’s
benchmark interest rate this year.
Also Wednesday, the Commerce Department reported retail sales increased 4.6% on the
year to October.
—Eric Morath
and Harriet Torry
CAPITAL ACCOUNT | By Greg Ip
CPI Tweak Could Mean Higher Taxes
Tucked into Republicans’
tax overhaul bill is a technical
tweak to how inflation is measured. The change is designed
to hold down the deficit, but
over time it
becomes a significant tax increase that
hits many of
the same middle-class households who start
out as the plan’s beneficiaries.
Both the House and Senate
versions of the tax bill would
adjust the income thresholds
at which tax rates change using a “chained” measure of inflation rather than the betterknown consumer-price index.
T
his makes economic
sense because economists consider the
chained CPI a more accurate
gauge of the cost of living. But
because it also yields a lower
measure of inflation, it pushes
people more rapidly into
higher tax brackets. For some
income groups, this could
eventually wipe out the entire
initial tax cut, setting aside
any boost to economic growth.
This is almost certainly not
the lawmakers’ intent, but it
illustrates the powerful and
little-appreciated effect of
seemingly technical provisions, and raises questions
about whether the plan is as
generous to the middle class
as proponents claim.
When your income rises,
some of that merely protects
Lower Inflation, More Tax
Using the chained CPI to index tax brackets reduces scale of the tax cut over time, especially for lowerand middle-income families.
Average tax cut as a percentage of after-tax income in 2027,
with and without chained CPI*
Annual inflation
4%
Tax cut
CPI
Chained CPI
Less than $10,000
$10,000-$20,000
$20,000-$30,000
$30,000-$40,000
$40,000-$50,000
$50,000-$75,000
$75,000-$100,000
$100,000-$200,000
$200,000-$500,000
$500,000-$1 million
$1 million and above
3
2
1
0
–1
2001
’05
’10
’15
your purchasing power against
inflation. It’s the part above
inflation that represents your
“real” raise. Indexing raises
the income thresholds at
which your tax rate rises.
Without it, many taxpayers
with no real gain in income
would still be pushed into
higher brackets merely because of inflation.
Inflation indexing began in
1985, one of the most beneficial facets of Ronald Reagan’s
original tax cut. Tax brackets
and key provisions such as the
standard deduction and personal exemptions are indexed
to the Labor Department’s CPI.
But economists have long
known the CPI overstates the
Vermont’s Magic Mountain
ski area was founded by Hans
Thorner in 1960. An Off Duty
article on Saturday about
lesser-known ski destinations
in the U.S. incorrectly said
that Geoff Hatheway, the current president of Magic Mountain, founded it.
B
ut the impact is highly
uneven. In last week’s
version of the Senate
bill, households earning more
than $1 million a year are already in the highest bracket,
so their after-tax income
drops by just 0.1% by 2027
due to the new formula, according to Ernie Tedeschi, an
analyst at Evercore ISI, who
used a model developed by
the American Enterprise Institute. He reckons the effect is
similar in the House bill.
After-tax incomes drop by
0.2% to 0.3% for households
earning between $40,000 and
$1 million and 0.4% for those
earning between $20,000 and
$40,000. The impact is largest
for the lowest-income taxpayers because they depend more
on the standard deduction,
child tax credit and a new
family flexibility credit, all of
which will be indexed to the
chained CPI.
The impact also compounds
over time. The Tax Founda-
THE WALL STREET JOURNAL
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(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
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Crafted for New Heights.
0.2
cost of living. When prices
for a particular commodity
rise faster, consumers shift
to cheaper alternatives. The
CPI adjusts for this by updating the weights of various
items every two years. The
chained CPI captures these
changes in behavior sooner,
in effect updating the weight
every month. Since 2001, inflation has averaged a quarter percentage point less under the chained CPI than the
regular CPI.
Taxpayers get a break from
the current system because it
shelters not just the raise that
compensates for inflation, but
some of their real raise, too.
Both the House and Senate
bills would in effect eliminate
that second layer of protection
by switching to the chained
CPI. This raises about $130
billion more revenue over 10
years in the latest versions of
both bills, according to the
nonpartisan Joint Committee
on Taxation.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
Hugh Jackman and
the new TimeWalker
Chronograph
0
0.4
0.4
0.3
0.2
0.2
0.3
0.3
0.2
0.1
*Tax cut projections based on last week's version of Senate bill.
Sources: Bureau of Labor Statistics (CPI); Joint Committee on Taxation, Ernie Tedeschi of Evercore ISI (cuts) THE WALL STREET JOURNAL.
CORRECTIONS AMPLIFICATIONS
A 1963 church bombing in
Birmingham, Ala., killed four
girls. In some editions Wednesday, a Page One article about Alabama’s U.S. Senate race incorrectly said three girls were killed.
The article in some editions also
misidentified Democratic Rep.
John Lewis as a Republican.
0.4%
0.4
0.5
0.5
0.8
1.1
1.0
1.1
1.5
2.5
1.5
Without chained CPI
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tion, a think tank, estimates
the change raises four times
as much in the second decade
as the first. This is also why
some income groups start
with a tax cut and end up with
a tax increase. David Kamin, a
law professor at New York
University, calculates that a
family of four earning $59,000
gets a tax cut of $1,000 in
2018 in the House plan but
that could disappear by 2024
assuming the family flexibility
credit expires as scheduled, or
by 2030 if it’s extended.
Once the new index becomes law, don’t count on it
being reversed, for two reasons: First, because the effect
is so subtle in any single year,
Switching to chained
CPI could push people
more rapidly into
higher tax brackets.
most taxpayers won’t even notice so there is little political
price to keeping it. Second, as
deficits widen, the revenue the
new index raises becomes ever
more irreplaceable.
Tuesday’s amendments to
the Senate bill illustrate this.
Lawmakers decided to let
most of the personal tax cuts
expire in 2025 to keep the total cost within Senate guidelines. But the chained CPI will
stay. So if the old brackets return in 2026, they will be set
at levels that raise more tax
than under the regular CPI.
Of course, if the business
rate cuts boost growth as
much as the administration
promises, that will matter
more for workers than any
specific tax provision. Nonetheless, fairly or not, the use
of the new inflation index
makes it harder for the administration to fight criticism that
this tax reform benefits the
rich much more than the rest.
BARNEYS.COM
NE W YORK
CHICAGO
B E V E R LY H I L L S
BOSTON
LAS VEGAS
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PHILADELPHIA
S E AT T L E
F O R I N S I D E R A C C E S S : T H E W I N D O W. B A R N E Y S . C O M
CONNOR
#HA ASRULES
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A3
* * * * *
U.S. NEWS
RICH PEDRONCELLI/ASSOCIATED PRESS
Diplomat
Dies After
Fall From
Building
BY ZOLAN KANNO-YOUNGS
An Australian diplomat accidentally fell five stories to his
death from a Manhattan building terrace early Wednesday morning playing the “trust
game,” according to a law-enforcement official.
New York City police found
Julian Simpson, the 30-yearold second secretary to the
United Nations for Australia,
dead at 1:15 a.m. on the second-floor terrace of the apartment building on Clinton
Street near East Houston
Street, the official said.
Police interviewed Mr.
Simpson’s wife and friends
about what happened before
the fall, the official said.
After going out for dinner
and drinks, the group returned
to the apartment building terrace for more drinks and to
view the Empire State Building, the official said. The
building was lighted up in
rainbow colors to celebrate
Australia’s nonbinding vote to
legalize same-sex marriage.
‘Let’s play the trust
game,’ Mr. Simpson
told the man before
falling to his death.
Mr. Simpson then went to a
higher roof landing with another woman in the group, the
official said, “and decided to
swing her around.”
When the group went back
inside, the woman’s husband
confronted Mr. Simpson, the official said. “The intentions were
never to scare or hurt your
wife,” Mr. Simpson told the
man, according to the official.
Mr. Simpson then told the
man that he could prove his
trustworthiness, the official
said. “Let’s play the trust
game,” Mr. Simpson told the
man, before they went to the
seventh-floor terrace.
Mr. Simpson said he would
lean near the ledge of the terrace and fall into the arms of
the man, the official said, but
before the man could get prepared, Mr. Simpson slipped on
the edge and fell through the
arms of the man.
The official said police were
treating the incident as an accident.
A spokeswoman for the
Australian Department of Foreign Affairs and Trade said it
was providing assistance to
the family. “The family has requested privacy at this time,”
the spokeswoman said.
Phil Johnston, assistant sheriff in Tehama County, Calif., said the lockdown stopped a ‘bloodbath.’
School Lockdown Saved
Many Lives, Officials Say
BY ZUSHA ELINSON
AND TAWNELL D. HOBBS
The staff's decision at a
northern California elementary school to put the school
in lockdown helped prevent “a
horrific bloodbath,” Tehama
County Assistant Sheriff Phil
Johnston said Wednesday.
One day after 43-year-old
Kevin Neal crashed his truck
through the locked front gate
at Rancho Tehama Elementary
School and sprayed the school
with bullets, law-enforcement
authorities
credited
the
school’s quick-thinking staff
with saving the students’ lives.
During a rampage that lasted
about 30 minutes, Neal shot at
cars, neighbors’ houses and the
elementary school. He killed
five people—but none at the
school. Neal was shot and killed
by law-enforcement officers.
On Wednesday, Assistant
Sheriff Johnston said authorities discovered the body of
Neal’s wife hidden in the floor
of the couple’s home. Investigators believe that he mur-
dered her on Monday, he said.
“We believe that’s what
started this whole event,” Assistant Sheriff Johnston said.
Tuesday’s rampage unfolded as students were arriving at the school’s small beige
and green classroom buildings,
located about 130 miles north
of Sacramento.
First there was a loud bang
close by, then came two more
in close succession, said Richard Fitzpatrick, the superintendent of Corning Union Elementary School District.
The school secretary made
the quick decision to lock down
the school, he said. Teachers
began to usher students into
their classrooms, telling them
to get under their desks.
As the students ran, the gunman crashed through the gate
and opened fire at a janitor,
school officials said. The gun
jammed momentarily, giving
the children a few extra seconds to run to safety, they said.
Teachers locked the classroom doors. The gunman
raged outside, firing through
windows and hitting a little
boy, law-enforcement officials
said. But Neal couldn’t enter
the classrooms—preventing
mass casualties, law-enforcement and school officials said.
Mr. Fitzpatrick credited the
secretary and the staff with
saving the lives of the children.
“This was a situation where
evil was overcome by preparation and unconditional love
and selflessness,” he said.
The secretary couldn’t be
reached for comment.
The school district, like
many others around the country, has drilled for active shooters, Mr. Fitzpatrick said. Typically, when there is a shooting
close by, students and teachers
are immediately notified of a
lockdown and told to seek shelter behind locked doors.
“It is monumental that that
school went on lock down,”
Assistant Sheriff Johnston
said. “I really truly believe we
would’ve had a horrific bloodbath in that school if that
school hadn’t taken the action
when they did.”
GOP More Open to a Health Plan
BY STEPHANIE ARMOUR
AND KRISTINA PETERSON
WASHINGTON—Republican lawmakers looking to repeal a rule requiring most
people to have health insurance said Wednesday they
were now more open to a bipartisan plan to bolster the
insurance markets, since they
would likely face political responsibility for the healthcare system.
The measure, reversing
President Donald Trump’s
halting of payments to health
insurers, is now more likely to
be in a year-end spending
package, Republican aides
said. Repealing the Affordable
Care Act’s individual mandate
is expected to raise insurance
premiums, health experts say,
adding pressure on GOP lawmakers to take offsetting measures.
Sen. Lindsey Graham (R.,
S.C.) said that if Republicans
undo the insurance requirement, they will have to contend with a changed political
dynamic.
“You could make an argument that Obamacare is falling
of its own weight—until we
repeal the individual mandate.
Then there is absolutely no excuse for us not to replace
Obamacare,
because
we
changed the fundamental principle of Obamacare,” Mr. Graham said.
“I hope every Republican
knows that when you pass a
repeal of the individual man-
date, it’s no longer their problem,” he said. “It becomes
your problem.”
Senate Republicans this
week decided to include repeal
of the insurance rule in the
broad tax package they hope
to pass this month. At the
same time, many said they are
committed to advancing a bipartisan bill aimed at restoring the payments to insurers,
an effort to bolster the insurance markets.
Some Democrats say they
felt they had a deal on the bill
by Sen. Lamar Alexander (R.,
Tenn.) and Patty Murray (D.,
Wash.), but that now it is being used to woo centrist Republicans into supporting a repeal
of
the
individual
mandate.
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A4 | Thursday, November 16, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
Making a Mark on the Currency
UCLA Players
Admit to Theft
ANDREW HARRER/BLOOMBERG NEWS
BY NOUR MALAS
ON THE MONEY: Treasury Secretary Steven Mnuchin and his wife, Louise Linton, on Wednesday held a sheet of bills bearing his signature.
Moore Team Faults Accuser
BIRMINGHAM, Ala.—Republican Senate nominee Roy
Moore’s lawyer tried to discredit one of the women who
has accused him of sexual misconduct, and President Donald
Trump chose not to weigh in
on the Alabama race dividing
his party on Wednesday.
Moore lawyer Phillip Jauregui in a press conference
questioned the woman’s veracity and suggested Mr. Moore’s
signature may have been
forged in a yearbook the
woman displayed as evidence
of their 1977 interaction.
As he spoke, news broke of
new accusations. According to
an AL.com report, Tina Johnson, a Gadsden, Ala., resident,
said that in 1991, when she was
28 and Mr. Moore was married, that he grabbed her buttocks after extensive flirting in
his law office.
Other allegations against
Mr. Moore involved teenagers
when he was in his 30s, but he
wasn’t married at the time.
Ms. Johnson couldn’t be
reached to comment. Brett
Doster, a Moore spokesman,
said of the latest allegation,
“This has become a circus. If
you are a liberal and hate
Judge Moore, apparently he
groped you. If you are a conservative and love Judge
Moore, you know these allegations are a political farce.”
Republicans in Washington
are calling on Mr. Moore to
drop out of the race before
the Dec. 12 special election,
but some Alabama Republicans
are rallying behind the former
judge.
“We believe that a person is
innocent until proven guilty,
and Judge Moore has our support,” said Linda Lewis, president of Capital City Republican
Women, who is promoting
a Nov. 17 pro-Moore rally on
the steps of the state capital.
Many Senate Republicans,
who are trying to stave off the
first Democratic Senate victory
in Alabama in decades, were
hoping Mr. Trump would add
his voice to those calling for
Mr. Moore to step aside. But
he said nothing on Wednesday about the matter while delivering a speech summing up
his trip to Asia.
After his address, the president ignored questions from
reporters about the Alabama
matter. Last week, White
House press secretary Sarah
Huckabee Sanders said Mr.
Trump “believes that, if these
allegations are true, Judge
Moore will do the right thing
and step aside.”
The press conference by Mr.
Jauregui in Birmingham represented the first formal effort
by the Moore campaign to dispute the allegations.
The attorney sought to undermine Beverly Young Nelson,
Lawyer suggests
signature was faked;
Trump says nothing
about Alabama race.
a 55-year-old businesswoman,
who said at a press conference Monday that Mr. Moore
groped her and tried to initiate
sex with her in his car when
she was a 16-year-old waitress
at a restaurant in Gadsden.
She displayed a high-school
yearbook with what she said
was a message from Mr.
Moore signed, “Love, Roy
Moore.”
Mr. Jauregui said Mr.
Continued from Page One
tively against the GOP plan.
The risk for GOP leaders is
that other Republicans get behind Mr. Johnson’s opposition,
and either stop the bill or slow
its passage, depriving the party
of the chance to boost after-tax
income household income next
year, during the elections.
Still, in a statement issued in
the late afternoon, Mr. Johnson
said he hoped that Republicans
could address the disparity so
he could support the final version of the tax bill. Such
changes could be expensive and
might force tax writers to make
other changes.
President Donald Trump
called Mr. Johnson on Wednesday night.
Mr. Johnson also complained
about a process that he said has
been closed to his input and
also misleads the public about
the nature of the tax overhaul.
Mr. Johnson said Republican
plans prioritize corporations
over “pass-through” entities—
sole proprietorships, partnerships, limited liability companies and S Corporations—whose
owners pay taxes through individual returns and at individual
income-tax rates, rather than
corporate rates. The Senate
plan, like the House plan, proposes to cut the corporate rate
from 35% to 20%.
Top rates for pass-through
filers would remain over 30% in
the Senate version of the bill
and the House bill substantially
constrains how much passthrough income could be taxed
at a new 25% rate.
The Senate bill would provide $1.3 trillion in gross tax
rate cuts to corporations, according to the Joint Committee
on Taxation. That compares
with $362 billion in gross tax
cuts for pass-through entities.
Both types of businesses also
would lose some tax breaks.
More companies are organized as pass-through busi-
AUCTION
SUSAN WALSH/ASSOCIATED PRESS
TAXES
Moore “flatly denies” he ever
signed the yearbook. The lawyer said his team has lined up
a handwriting expert to examine the signature to test
whether it is legitimate. He demanded Ms. Nelson and her attorney, Gloria Allred, release
the yearbook to an independent third party so experts can
devise whether the “ink on the
page” is old or new and see if
the signature is “genuine.”
Ms. Allred said in a CNN interview that they would allow
the yearbook to be examined
only if Mr. Moore agreed to
testify under oath on the matter before the Senate.
Meanwhile,
Democratic
Senate nominee Doug Jones’s
campaign is now trying to
seize the opportunity to reach
out to Republican voters who
are alienated by Mr. Moore.
If Mr. Jones is going to
score an upset victory in a
state as conservative as Alabama, he will need a sizable
number of Republicans to either stay home on Election
Day or cross party lines.
The Jones campaign on
Tuesday released a new ad and
an online video spotlighting
support from Republicans who
are put off by Mr. Moore.
Sen. Ron Johnson opposes the current GOP tax plan.
nesses than as corporations.
Many pass-through filers are
small businesses. Overall U.S.
business income is split roughly
evenly between the passthrough businesses and corporate income.
Finding the right rate for
pass-through businesses is a
challenge in part because they
file their tax returns as individual filers. Cutting the rates for
the wealthiest pass-through filers could be tagged as a giveaway to the rich. More than half
of pass-through business income goes to the top 1% of
households, according to the
Tax Policy Center.
Mr. Johnson expressed his
frustration at a sensitive time,
when House Republican leaders
are on the verge of passing their
tax bill but need to tamp down
concerns that the Senate will
fail to act and leave House Republicans having cast a difficult
vote. By voicing his concerns
one day before Thursday’s
House vote, Mr. Johnson raises
the profile of his issue but also
feeds into worry among House
Republicans about the reliability
of their Senate partners.
Pass-through profits are
taxed once, at their owner’s personal rate of up to 39.6% under
current law. Corporation profits
are taxed twice—once at the
corporate rate (20% under the
current proposals), and a second time when they pay dividends on which shareholders
then pay taxes. Some corporate
profits aren’t taxed twice if
owned by foreigners or tax-exempt entities.
To eliminate their double
taxation, Mr. Johnson has proposed treating corporations like
pass-through businesses. They
would pay no corporate tax and
their profits would be taxed in
the hands of their shareholders
at individual rates, just as passthrough income is today.
Democrats declined to comment on Mr. Johnson’s remarks.
Mr. Johnson understands
that Republicans could treat
him harshly if he stops their tax
bill from passing in December.
“I realize what’s about to
happen to me, OK?” he said.
“I’m giving them fair warning to
do a good tax bill. I’ve been giving them fair warning for
months.”
—Richard Rubin
contributed to this article.
Continued from Page One
million and $300 million, respectively.
Alex Rotter, chairman of
Christie’s postwar and contemporary art department, fielded
the winning telephone bid after
a 19-minute bidding war with
at least five rivals in which bids
were initially lobbed in $10 million increments. Billionaire collectors in the saleroom watched
with their cellphone cameras
held aloft as though they were
at a rock concert.
“I’ve been going to auctions
for decades, and I’ve never
heard that room let out a collective gasp like they did when
it sold,” said Joanne Heyler,
founding director of the Broad,
a Los Angeles museum.
The da Vinci boosted Christie’s sale total to $786 million,
making it the auction industry’s
second-highest sale total following an $853 million sale of
contemporary art held at the
house three years ago.
The sale also included Andy
Warhol’s $60.9 million “Sixty
Last Suppers,” a homage to another da Vinci masterpiece,
WASHINGTON WIRE
CONGRESS
JUDICIARY
Part of Trump Dossier Bar Group Rejects
Is True, Schiff Says
Claims of Liberal Bias
The top Democrat on the
House Intelligence Committee
rejected GOP efforts to discredit
a raw-intelligence document
compiled on Donald Trump during the 2016 campaign, saying
that its allegations that Russia
sought to help elect Mr. Trump
“turned out to be true.”
Rep. Adam Schiff of California
told The Wall Street Journal that
much of the dossier, compiled by
ex-British intelligence official
Christopher Steele, is about Russian efforts to boost Mr. Trump,
which U.S. intelligence agencies
later affirmed. Russia has denied
meddling in the U.S. election.
“The biggest thing that I
think people need to realize
about the dossier is that Christopher Steele discovered that
the Russians were embarked on
a broad effort to help the Trump
campaign before our own intelligence agencies came to the
same conclusion,” Mr. Schiff said.
—Byron Tau
over the Warhol’s $50 million
estimate. Five other pieces in
the sale sold for over $20 million, including examples by Cy
Twombly, Mark Rothko and
Franz Kline.
Christie’s went to extraordinary lengths to position the da
Vinci auction as a blockbuster
event. It exhibited the painting
around the world, with stops
in Hong Kong, London and San
Francisco. At least 27,000 people world-wide turned up to
get a glimpse, the house said.
Da Vinci painted the portrait around 1500, and it
bounced among European royals for hundreds of years before shoddy cleaning efforts
and overpainting rendered it
almost unrecognizable.
When it surfaced in 1958 at
Sotheby’s, it sold as a “school of
da Vinci” work for £45 (about
$125 at the time). But in 2005 a
group of Old Master dealers
and a conservator took a closer
look and campaigned for its reauthentication. Ultimately, they
won validation from museums
and da Vinci scholars.
“Salvator Mundi” comes
from the collection of Dmitry
Rybolovlev, a Russian fertilizer
billionaire.
The head of an American Bar
Association committee that evaluates federal judicial nominees
defended the group’s work on
Wednesday against Republican
allegations of liberal bias.
In a hearing by the Senate
Judiciary Committee, Republicans attacked the association’s
judicial evaluation committee as
a liberal advocacy group masquerading as a neutral appraiser
of competence, integrity and judicial temperament. Republicans
have complained about the committee’s bias for decades.
“We’re not here to become a
political arm of anybody, but we
do want to have an exhaustive
peer evaluation, and if you
choose to ignore it, you ignore it,
but this is a process that has
gone on for 60 years, and we
think we get it right most of the
time,” Pamela Bresnahan, chairwoman of the evaluation committee, said in her testimony.
—Joe Palazzolo
Art for the Ages:
Biggest Auctions
u Picasso’s 1955 ‘Women
of Algiers (Version O),’
$179.4 million, at Christie’s,
2015
u Modigliani’s 1917-18 ‘Reclining Nude,’ $170.4 million, at
Christie’s, 2015
u Bacon’s 1969 ‘Three
Studies of Lucian Freud,’
$142.4 million, at Christie’s,
2013
u Munch’s 1895 ‘The Scream,’
$119.9 million, at Sotheby’s,
2012
u Basquiat’s untitled 1982
painting, $110.5 million, at Sotheby’s, 2017
u Picasso’s 1932 ‘Nude, Green
Leaves and Bust,’ $106.5 million, at Christie’s, 2010.
u Warhol’s 1963 ‘Silver Car
Crash (Double Disaster),’
$105.4 million, at Sotheby’s,
2013
LEAH LATELLA/THE WALL STREET JOURNAL
BY JANET HOOK
AND JOSHUA JAMERSON
LOS ANGELES—Three UCLA
basketball players admitted to
shoplifting while in China and
have been temporarily suspended from the team by the
university, which on Wednesday thanked U.S. and Chinese
authorities for helping to secure their release.
University of California, Los
Angeles freshmen LiAngelo Ball,
Jalen Hill and Cody Riley each
apologized. Seated beside their
head coach and the university’s
athletic director at a press conference, they spoke publicly for
the first time since becoming
suspects in a shoplifting investigation in China a week ago.
The team’s trip to China,
part of a marketing campaign
led by Alibaba Group Holding
Ltd., for a moment seemed to
push an American college
sports drama to the verge of
an international incident.
The team had traveled to
China for a season-opening
game against Georgia Tech in
Shanghai. The three players
were suspected of shoplifting
at a mall near their luxury hotel in the city of Hangzhou,
where the team had traveled to
visit the Alibaba headquarters.
President Donald Trump intervened in the matter with
Chinese President Xi Jinping
while traveling there last week.
The shoplifting investigation
drew particular attention in the
U.S., in part because Mr. Ball
comes from a high-profile basketball family. The family’s eldest son, Lonzo Ball, played for
UCLA last year and is now with
the Los Angeles Lakers. LiAngelo Ball is a freshman, and another brother, LaMelo, has
committed to play for UCLA.
Addressing the press conference, Mr. Ball apologized and
said: “I didn’t exercise my best
judgment and I was wrong for
that. I also apologize to the
people of China for causing
them so much trouble.”
The players thanked the
Chinese government for treating them well and their own
government for helping to secure their release.
UCLA coach Steve Alford
and Athletic Director Dan Guerrero also thanked the Chinese
government, as well as Mr.
Trump, while apologizing to
the Chinese people and Alibaba.
A crowd lined up Tuesday to view Leonardo da Vinci’s ‘Salvator Mundi’ at Christie’s in Manhattan.
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A5
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A6 | Thursday, November 16, 2017
* *****
THE WALL STREET JOURNAL.
U.S. NEWS
Submarine Maker Scopes
State for Skilled Workers
BY JOSEPH DE AVILA
GRETCHEN ERTL FOR THE WALL STREET JOURNAL (2)
GROTON, Conn.—Submarine maker Electric Boat has
run into a challenge amid its
biggest hiring push since the
Cold War: finding qualified
workers in a small state
crowded with defense contractors.
To locate new employees in
a region where technical
schools that once offered robust
preparatory
trade
courses have shrunk, the Groton-based division of General
Dynamics Corp. collaborates
with local workforce boards. It
also expanded its training
budget and resurrected a dormant apprentice program as it
seeks to fill jobs for welders,
pipe fitters and machinists.
Anne Messerschmidt, who
worked retail jobs for several
years, recently joined the
company’s apprentice program, lured by the prospect of
career advancement and
higher pay. The starting wage
for Electric Boat apprentices
is about $21 an hour, though it
varies by trade. An employee
who finishes the program can
make about $30 an hour, also
depending on trade.
“Working retail, you can’t
really expand. You can’t make
a life from it,” said Ms. Messerschmidt, a 25-year-old from
East Haddam, Conn.
Behind the hiring are expectations
that
military
spending will rise under the
Trump administration. The
Senate and House Armed Services panels announced details
last week of a defense bill that
calls for $700 billion in spending for the current federal fiscal year, up from the $589 billion budget in the fiscal year
that ended Sept. 30.
The bill authorizes purchases of more than four
dozen combat aircraft and repairs to the Navy destroyers
USS Fitzgerald and USS John
S. McCain, as well as funding
Anne Messerschmidt, above,
who previously worked in
retail, now is an apprentice at
Electric Boat in Groton, Conn.
She says, ‘Working retail, you
can’t really expand. You can’t
make a life from it.’ Kurt
Hesch, right, chief operating
officer of the General
Dynamics unit, says, ‘Finding
people that want to do this
work’ has been a challenge in
Connecticut, a small state
crowded with defense
contractors.
Bright Spot in Sluggish Growth
Connecticut’s economy lags
behind the U.S. and neighboring
states since the recession...
...and its population has shrunk in
recent years...
...but the New London metro area,
spurred by the defense industry,
is a bright spot.
GDP, change from earlier year:
Change in Population:
GDP, change from earlier year:
3%
2
United States
1
3%
3%
2
2
1
1
0
0
–1
–1
–2
–2
New London
New Haven
0
New England
–1
–2
Connecticut
–3
–3
–3
2011
’15
Bridgeport
2011 ’12
’13
’14
’15
’16
Source: U.S. Bureau of the Census, Bureau of Economic Analysis
2011
’15
THE WALL STREET JOURNAL.
for subs built by Electric Boat.
A final spending plan will be
included in congressional budget negotiations.
The transportation-equipment manufacturing field,
which includes Pratt & Whitney and Electric Boat, employs 44,200 people in the
state, up 11% since July 2014,
according to the Federal Reserve Bank of St. Louis. Average wages for durable-goods
manufacturing jobs in Connecticut, a category that includes many defense jobs,
jumped to about $25 an hour
in 2017, compared with about
$21 in 2013, according to the
St. Louis Fed.
New London County, where
Electric Boat is based, has
benefited from defense expansion, after being hit hard by
the recession and the waning
fortunes of the area’s casino
industry, said Don KlepperSmith, chief economist for
consulting firm DataCore Partners LLC. After years of decline and paltry growth, the
region added nearly 2,000
manufacturing jobs in the two
Defense Jobs Help
Ailing Connecticut
The defense industry is one
of the few bright spots in Connecticut’s still-sluggish economy,
which hasn’t fully recovered all of
the jobs it lost during the recession. Connecticut’s unemployment
rate is 4.6%, down from a peak of
9.2% in February 2011, though
above the national figure of 4.1%.
With 60,000 aerospace and
defense jobs, according to 2016
data from the Aerospace Industries Association, Connecticut
ranks third after Washington and
Kansas among states with the
highest percentage of such jobs
in its workforce, according to a
Wall Street Journal analysis.
But the state is going
years through March, a 12%
increase, according to an analysis by Mr. Klepper-Smith.
Electric Boat’s hiring was
fueled by winning a $5 billion
contract for design work on
the U.S. Navy’s next generation of ballistic-missile submarines and finishing up older
projects. The company says it
needs to hire 15,000 to 18,000
workers by 2030.
Among hurdles the company faces is a shortage of
residents with the necessary
manufacturing skills. To contend with that, the company
has doubled its annual training budget to $40 million and
is scooping up workers
trained by the Eastern Connecticut Workforce Investment Board, a nonprofit that
coordinates regional training
programs.
Over 4,600 people signed
up for a skills and work-readiness program, said John Beauregard, chief executive of the
nonprofit. About 600 completed the program and have
been hired by employers, including Electric Boat.
through hard times. It lost population three years in a row
through July 2016. Economic
growth has been among the
slowest in the country in the
past five years, ranking 44th,
according to an analysis by
Moody’s Investors Service. And
several major employers, including Aetna Inc. and General
Electric Co., are moving their
headquarters out of the state.
Now, the defense sector
may be coming to the rescue.
Big defense companies in Connecticut—United Technologies
Corp.’s Pratt & Whitney and
Lockheed Martin Corp.’s Sikorsky, in addition to General Dynamics Corp.’s Electric Boat—
are also on hiring sprees, both
seeking to add thousands of
workers in coming years.
—Joseph De Avila
Colleges Get Bulk of $77 Million Charles Koch Largess
A foundation backed by the
libertarian billionaire Charles
Koch gave away $77 million in
2016, primarily to hundreds of
colleges and universities, according to its latest tax filing.
That marks a dollar increase of 75% from the previous year, when it gave away
$44 million. The foundation is
on pace to donate $120 million this year, again mainly to
institutions of higher education, according to its annual
report, released late Wednesday. The 37-year-old foundation said in its 2016 tax filing
that its giving is focused on
“research and education programs that analyze the impact
of free societies.”
John Hardin, director of
university relations, said it is
getting more grant requests,
in part due to its focus on topics of high interest on today’s
college campuses, such as
criminal-justice reform, free
expression and foreign policy.
Those, he said, are “some of
the most significant issues
right now in our society that
are barriers or…that strike at
the ability of people to prosper and pursue their interest.”
The Charles Koch Foundation gifts aren’t the largest in
higher education, individually
or combined. But they are notable because so many schools
receive them. Just this week,
it announced a $3.7 million
grant for Harvard University
and the Massachusetts Institute of Technology to launch
the Project on Grand Strategy,
Security and Statecraft, which
will explore the U.S.’s role on
the global stage and other
foreign-policy concerns. Earlier this month, it announced
a $4.5 million gift to Ohio
State University to create a
center on drug law reform.
And in October, Iowa State
University got $1.69 million to
study economies in the Midwest, including analyzing the
VOTE
Continued from Page One
weeks to win support from
shareholders, from major index
fund managers to thousands of
P&G retirees. At the end of the
campaign, the company’s
shareholders were essentially
evenly split.
Mr. Peltz, a 75-year-old billionaire, usually has sought a
board seat at companies in
which he invests. He personally joined Mondelez International Inc., the maker of Oreos,
and H.J. Heinz Co. While he is
known for breaking up conglomerates, Trian has said that
isn’t part of his P&G thesis and
that it wants a director with
investing experience and consumer expertise to help Mr.
Taylor make decisions.
The win would be a second
major validation in two
months of Trian’s brand of activism by which it seeks to
work with management teams
almost like consultants. Last
month, co-founder Ed Garden
was added to the board of
General Electric Co. as the industrial giant struggles to improve its earnings and stock
price.
P&G had argued Mr. Peltz
would knock the company off
its path, a message similar to
one that DuPont Co. had used
two years ago to defeat him in
a proxy vote.
Yet DuPont soon after
ousted its chief executive and
Trian helped as the company
negotiated its merger with rival Dow Chemical Co.
impact of regulatory policies
on entrepreneurship and economic growth, according to
the school.
In 2016, the foundation
gave money to more than 300
schools, ranging from tiny
John Paul the Great Catholic
University in San Diego to historically black Southern University at New Orleans to New
York University Law School. It
also gave more than $731,000
to Brown University and its
Political Theory Project, and
$63,200 to the University of
California, Berkeley, according
to its latest tax filing.
Charles Koch and his
brother, David Koch, leapt onto
Meredith recruits Kochs in
takeover of Time...................... B1
The two sides now head to
what is known in activist circles as “the snake pit,” in
which P&G and Trian can investigate each contested vote.
It is part of a certification process that checks whether
shareholders had the authority
to vote, signed and marked
ballots correctly and to verify
that no vote was counted more
cally, IVS also has to check paper ballots by hand.
Shareholders can vote many
times, though only the last
vote counts. Typically, shareholders receive dozens of
proxy cards. In this case, P&G
sent out blue voting cards,
while Mr. Peltz has mailed out
white cards. IVS counters must
determine if a ballot is a
the national political stage in
recent years because of their financial support for Republican
candidates and conservative
causes.
Their political support network, which includes Americans for Prosperity and Freedom Partners, poured $250
million into politics and policy
in the 2016 election cycle and
expects to boost that investment to as much as $400 million for 2018.
Mr. Hardin said the foundation’s gifts to colleges aren’t
politically motivated.
NIKKI RITCHER FOR THE WALL STREET JOURNAL
BY MELISSA KORN
Nelson Peltz, shown at a 2016 WSJDLive
conference, called on P&G to concede.
than once.
The tally has been handled
by IVS Associates Inc., an independent proxy counting firm,
whose employees have reviewed ballots collected by
both P&G and Trian. While
many votes are cast electroni-
shareholder’s last or only vote.
The decision can be challenged
by either camp. IVS makes the
final call.
Votes are rarely close
enough that the certification
process even comes into play.
In 2006, Trian won two seats
on the Heinz board, a decision
announced a month after the
actual meeting, where both
sides originally said the vote
was too close. Mr. Peltz didn’t
take his seat until after the
certification.
The uncertainty of the P&G
vote was magnified by the
large portion of shares held by
small investors, leaving both
sides scrambling for support
from some 2.5 million shareholders instead of just a few
dozen who typically control
such votes. About 40% of P&G
stock is owned by retail investors, according to S&P Global
Market Intelligence.
On top of that, a significant
chunk of the shares were also
owned in the name of the investors, instead of just brokerage names, which is far more
typical. The votes from those
shares are only sent to the side
that they are voting for, meaning both P&G and Trian had
blind spots as they tried to determine the outcome.
The new count was lower
than both sides originally
thought they had, evidence
that either investors had voted
multiple times or some ballots
were already deemed invalid.
IVS had delayed the announcement several times in recent
weeks, dragging out the suspense for each side until
Wednesday afternoon.
Mr.
Peltz
received
971,953,651 votes, while the
P&G director with the least
number of votes, Ernesto Zedillo, a former president of
Mexico, received 971,910,871
votes, according to the tally by
IVS.
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A7
WORLD NEWS
Tillerson Urges Myanmar Refugee Probe
BY NIHARIKA MANDHANA
NAYPYITAW, Myanmar—
U.S. Secretary of State Rex
Tillerson pressed Myanmar’s
top civilian and military leaders to allow an independent
investigation into a crackdown
against ethnic Rohingya Muslims that has driven more than
600,000 people into neighboring Bangladesh.
In a press conference on
Wednesday with Aung San Suu
Kyi, who heads the country’s civilian government, Mr. Tillerson said he was “deeply concerned by credible reports of
widespread atrocities committed by security forces and by
vigilantes unrestrained by security forces.” An internal probe
by the military concluded this
week that no violations had occurred, drawing criticism from
human-rights groups.
Refugees living in camps in
Bangladesh have shared horrific accounts of killing, rape
and arson by security forces.
Aid agencies fear hundreds of
Rohingya are dead, but evi-
dence has been difficult to accumulate because Myanmar
has denied international factfinding teams access. Humanitarian and nonprofit groups
have largely been shut out.
Mr. Tillerson said his government was still evaluating
whether the violence in Myanmar’s Rakhine state amounted
to ethnic cleansing, a term the
United Nations and some
Western leaders have used. He
said the actions had “a number of characteristics” of
crimes against humanity.
“Myanmar’s response to this
crisis is critical to determining
the success of its transition to
democracy,” Mr. Tillerson said
during his brief visit to the
Southeast Asian country.
Ms. Suu Kyi’s government,
which took office in 2016 after
decades of rule by the military
and its proxies, doesn’t control
the powerful armed forces. But
Ms. Suu Kyi hasn’t condemned
the violence and has largely
echoed the military line, disappointing many who supported
the Nobel Peace Prize winner
during her decades of opposition to military rule.
Ms. Suu Kyi said on
Wednesday that she has been
careful with her words to
avoid inciting tensions between the Rohingya and the
AUNG SHINE OO/ASSOCIATED PRESS
Secretary calls for
inquiry into crackdown
on Rohingya Muslims
that sparked exodus
Secretary of State Rex Tillerson met with Myanmar leader Aung San Suu Kyi in Naypyitaw Wednesday.
Buddhists who must live together in Rakhine state. Relations have long been tense and
many local Buddhists are opposed to the refugees’ return.
“I haven’t been silent,” Ms.
Suu Kyi said. “But what I say
is not meant to be exciting, it’s
meant to be accurate and
aimed at creating more harmony and a better future for
everybody, not for setting people against each.”
Ms. Suu Kyi’s aides and
party leaders say her response
has also been molded by her
priorities, which lie in changing her country’s constitutional setup to achieve full democracy and for which she
needs the support of the military. The powerful institution
still controls large parts of
Myanmar’s administration.
Mr. Tillerson also met with
Myanmar’s military chief, Senior Gen. Min Aung Hlaing, on
Wednesday. The army says its
operations were aimed at
flushing out militants after a
Rohingya group attacked security outposts in August. The
U.S. has called the military’s
actions disproportionate, and
Mr. Tillerson said the armed
forces had a responsibility to
help refugees return and create
a safe environment for them.
The humanitarian crisis and
details of sexual assault and
murder have led to calls in the
U.S. and Europe for sanctions
on military leaders. Proposed
legislation in the U.S. Congress
seeks to block their assets and
ban travel to America. Mr. Tillerson said such sanctions “may
be appropriate” if the U.S.
found credible information linking individuals to the abuses.
Ms. Suu Kyi has denied access to a U.N.-appointed factfinding mission.
The probe by Myanmar’s
military found that security
forces didn’t use excessive
force or shoot at innocent Rohingya, the army said. The internal investigation didn’t uncover evidence that military
officers had raped women, destroyed homes and mosques,
and driven Rohingya from
their villages. The army said
the military had exposed and
arrested only militants and
their supporters.
Human-rights groups said
these conclusions showed that
Myanmar authorities were incapable of conducting an impartial investigation.
China to Send Envoy to North Korea
A trip to Pyongyang by a
special envoy of Chinese President Xi Jinping offers a
chance for Beijing to manage
relations with its troublesome
XINHUA/ZUMA PRESS
By Te-Ping Chen
in Beijing
and Jonathan Cheng
in Seoul
Song Tao, seen here in May, will travel to Pyongyang this week.
neighbor after months of
frayed ties and stepped-up
U.S. pressure to rein in North
Korea’s nuclear program.
The two sides will “exchange opinions on matters of
The Face
of Change
mutual concern” during the
envoy’s visit this week, a Chinese foreign ministry spokesman said. The trip’s main objective, he said, would be to
brief Pyongyang after the
twice-a-decade party congress
in Beijing last month.
The congress granted Mr. Xi
a second term and elevated
him in the Communist pantheon. North Korean leader
Kim Jong Un congratulated
Mr. Xi on the congress, and
Mr. Xi responded with a call
for both sides to promote better relations, according to
North Korean state media.
Under Mr. Kim, the relationship between the two allies has been one of both dependence and distrust, with
Pyongyang flouting Beijing’s
wishes in its pursuit of nuclear
weapons. Beijing has avoided
strong punitive measures that
could undermine the regime
and spread chaos along its
northeast border.
China said it would send
the envoy, Song Tao, the head
of the international affairs department for the Communist
Party’s Central Committee, to
Pyongyang this week.
The trip follows President
Donald Trump’s visit to Asia,
during which he urged China
to do more to curb Pyongyang’s nuclear ambitions. Mr.
Trump said he thought he had
secured a commitment from
Mr. Xi on the issue.
China’s willingness to take
more measures may hinge on
whether North Korea ups the
ante in its nuclear pursuits,
said James Acton, co-director
of the Carnegie Endowment
for International Peace’s nuclear-policy program.
Torsten Kablitz
Cloud Technology
Seattle, WA
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A8 | Thursday, November 16, 2017
THE WALL STREET JOURNAL.
* ***
WORLD NEWS
MUGABE
ZINYANGE AUNTONY/AGENCE FRANCE-PRESSE/GETTY IMAGES
Continued from Page One
hauls that turned Zimbabwe, a
former British colony, from Africa’s breadbasket into a desperate recipient of food aid and
triggered hyperinflation of historic proportions.
The military action could
have outsize ramifications for
Zimbabwe and Africa at a moment when the contest between
political systems there has become more intense than at any
moment since the Cold War.
Emboldened democrats in some
African nations are jostling with
autocratic regimes—like Mr.
Mugabe’s—that argue that
Western-style democracy hasn’t
served Africa well.
New leadership in Zimbabwe could also have broad implications for a crisis-riven
economy rich in platinum,
nickel and diamonds that had
sought to re-engage with
global financial institutions
such as the World Bank and
the International Monetary
Fund to overcome its latest
bout of hyperinflation.
Investors and analysts say
those institutions have stepped
up engagement in Zimbabwe
partly in hope that a bigger role
for Vice President Emmerson
Mnangagwa would foster a
more market-oriented approach.
As other African liberation
fighters, from South Africa’s
Nelson Mandela to Ghana’s
Kwame Nkrumah, took and
then eventually relinquished
power, Mr. Mugabe clung on.
Last year, he vowed to run in
2018 presidential elections,
where a victory would have
left him governing just a year
shy of his 100th birthday.
What set up the unprecedented display of military
might was a seething political
battle between two factions vying to succeed the visibly frail
Mr. Mugabe. Last week, the
Grace Mugabe delivered a speech in Bulawayo, Zimbabwe, this month.
Behind Autocrat,
Wife Under Fire
Nicknamed “Gucci Grace”
for her love of flashy, expensive clothes, Robert Mugabe’s
second wife sometimes turns
up at rallies dressed to match
her 93-year-old husband, who
is 41 years her senior.
But her desire to emulate
him extends far beyond the
wardrobe: for the past three
years, Grace Mugabe’s political
ascent put her a breath away
from succeeding him in power.
That calculus was put into
doubt this week after Zimbabwe’s military confined Mr.
Mugabe to his home and took
control of government and
civic institutions. The military’s motives were still unclear on Wednesday.
But its actions came after
Mr. Mugabe’s ouster of Vice
President Emmerson Mnangagwa this month outraged
many Zimbabweans. Many observers saw Grace Mugabe’s
hand behind removing her political rival. She hasn’t publicly
commented on the speculation.
Mrs. Mugabe’s earlier years
didn’t reveal an interest in high
political office. She was married to an air-force pilot and
had one child when she
started, in the 1980s, to work
for Mr. Mugabe as a secretary.
The two began an affair and
had two children while Mr.
Mugabe’s first wife was terminally ill before she died in
1992. Four years later, Mr.
Mugabe wed his new bride in a
grand Catholic ceremony
dubbed in the local press “the
wedding of the century”—they
had a third child together later.
Her rise from First Lady and
mother, to political powerhouse, has been sudden.
“They say I want to be president. Why not?” she said addressing a rally in 2014.
That year, Mrs. Mugabe was
appointed head of the women’s
league of her husband’s ZANUPF party and thus won automatically a seat on the party’s
Politburo. Mr. Mugabe identifies himself as a nationalist
Marxist and ZANU-PF follows,
at least in name, communist
party structures.
She used her new, institutional influence to build around
her a coalition, which came to
be known as G40 in a reference
to its members who were
mostly in their 40s and came
from the ranks of the party’s
youth movement. The informal
group would become her vehicle as she came ever closer to
positioning herself as the natural successor to her husband.
She pitted her allies against
Mr. Mnangagwa’s and, ultimately, Mr. Mugabe fired him
on Nov. 6, making his wife the
heir apparent.
Known for her hot temper,
Mrs. Mugabe allegedly lashed a
20-year-old-model with an extension cord after finding her
partying with two of her sons
in a Johannesburg hotel room
in August. In Hong Kong in
2009 she allegedly punched a
Sunday Times photographer
wearing a diamond-studded
ring, causing him cuts. In both
cases she was protected by
diplomatic immunity and
wasn’t charged.
Ordinary Zimbabweans resent Mrs. Mugabe for her conspicuous consumption of luxury good even as millions live
in poverty. During the 2000s,
as Zimbabwe was suffering a
falling economy with more
than 1,000% inflation, Mrs.
Mugabe famously spent more
than $25 million to build a
palace named
after her,
Graceland. She later sold it to
then Libya leader Moammar
Gadhafi.
By Peter Wonacott in
Abu Dhabi and Betsy
McKay in Atlanta
On Wednesday, the crown
prince of Abu Dhabi, Sheikh
Mohamed bin Zayed Al
Nahyan launched a fund with
the Bill & Melinda Gates Foundation to eliminate two persistent and debilitating neglected
tropical diseases.
The $100 million fund will
seek to eliminate river blindness, or onchocerciasis, and
lymphatic filariasis, which
leads to a condition known as
elephantiasis, from countries
where they circulate in Africa
and the Middle East. The
crown prince will donate $20
million and the Gates Foundation 20% of the total amount
raised to the new “Reaching
the Last Mile Fund,” with a
plan to raise the remaining
$60 million from others in the
region and beyond.
Beyond the capital commitments, GlaxoSmithKline PLC
and Merck & Co. are also supporting the eradication effort.
GSK will supply treatment to
deworm children in target
countries while Merck will donate the medication ivermec-
health causes. “The U.A.E. is
quite a significant giver,” Mr.
Gates said in an interview.
As many as 120 million people in 36 countries are at risk
of river blindness, mostly in Africa but also in Latin America
and in Yemen. The disease is
transmitted by black flies that
deposit larvae on human skin,
which develop into parasitic
worms that cause skin rashes,
depigmentation and eye infections that can lead to blindness.
Lymphatic filariasis is an
infection caused by parasitic
worms that are transmitted by
mosquitoes and settle into the
human lymphatic system. They
Small Country, Big Donor
United Arab Emirates leads other nations in international
donations as a percentage of gross national income.
Amount in billions
Official development assistance by country
1.12%
U.A.E.
Norway
1.11%
Luxembourg
1.00%
Sweden
0.94%
Turkey
0.79%
Denmark
0.75%
Germany
U.K.
U.S.
Source: OECD
0.54%
0.18%
$4.15
4.35
0.38
4.87
6.18
2.37
0.70%
24.67
0.70%
18.01
0.65%
Switzerland
MOZAMB.
Harare
ZIMBABWE
200 miles
200 km
B OTS W.
AFRICA
Detail
Pretoria
Johannesburg
SOUTH AFRICA
THE WALL STREET JOURNAL.
On Wednesday, analysts said
the military’s smooth seizure of
power showed Mr. Mnangagwa’s faction was ascendant.
“This is the old guard reinforcing its authority,” said
Alex Vines, head of the Africa
Progam at the U.K.-based
think tank Chatham House.
Many Zimbabwean analysts
have suggested that the old
guard intends to broker a government of national unity to be
Zimbabwe has experienced wide swings in growth relative to
neighboring countries.
Annual change in GDP* during Robert Mugabe’s tenure
20%
Zimbabwe
Sub-Saharan African average
10
0
–10
–20
1980
’90
*Adjusted for inflation Source: World Bank
2000
’10
THE WALL STREET JOURNAL
Zimbabwe President Robert Mugabe inspecting an honor guard during official Heroes Day commemorations in August.
tin to treat parasites linked to
lymphatic filariasis and river
blindness.
“If we don’t double down
on investments in innovation,
more children will die needlessly and poor health will
continue to hold back millions
of people and limit the economic potential of many developing countries,” Bill Gates,
the billionaire philanthropist
and co-chair of the Gates
Foundation, told a forum in
Abu Dhabi.
The new fund highlights the
crown prince’s and the United
Arab Emirates’ emerging role
in global aid, including global
Netherlands
Lusaka
Volatile Economy
Funds for Disease Fight Flow From Gulf
To tackle dangerous but
curable tropical diseases in
poor countries, the global
health community is following
the money—increasingly to
the Persian Gulf.
MALAWI
ZAMBIA
led by Mr. Mnangagwa alongside the country’s largest opposition parties. The new leadership is likely to seek a soft
landing for Mr. Mugabe rather
than subjecting him to punitive
treatment that could ignite violence, these commentators say.
For many Zimbabweans, the
self-styled grand old man of
African politics elicits contradictory feelings.
In the early years of his
presidency, Mr. Mugabe was
hailed by his supporters as an
inclusive and reform-minded
leader who initially went to
great lengths to cultivate ties
to the West and goodwill with
Zimbabwe’s white population.
But disastrous economic reforms forced millions of Zimbabwe’s best-educated workers to
flee skyrocketing unemployment and hyperinflation. Many
white farmers, whom Mr.
Mugabe had originally courted
after independence, also fled as
the government forcibly requisitioned their land and redistributed it to allies, a chaotic
process that triggered Western
sanctions in 2003.
The later years of his rule
were marred by bizarre and
tawdry spectacles. The aged
leader became prone both to
delivering rambling speeches
and to frequently falling
asleep in public. As Zimbabwe’s economy cratered, his
wife and children more brazenly flaunted their wealth.
Amid a relative calm in Zimbabwe’s capital on Wednesday,
residents were struggling to
make sense of the events.
“Why is this happening
now?” said Theresa, a 25-yearold marketing graduate among
the small number of shoppers
at Harare’s Avondale shopping
center. “I had come here to get
a meal at a local fast food outlet and it’s closed all because
of these issues. For how long
should we hold our breath?”
—Bernard Mpofu
contributed to this article.
JEKESAI NJIKIZANA/AFP/GETTY IMAGES
BY MATINA STEVIS-GRIDNEFF
president purged one faction
leader, Mr. Mnangagwa, whose
deft and sometimes ruthless
political maneuvering had
earned him the nickname Crocodile. Mr. Mnangagwa, 75 years
old, enjoys support among veterans of the war against white
rule over what was then Rhodesia in the 1960s and ’70s.
Mr. Mnangagwa’s dismissal
was seen as clearing the way
for another faction leader,
Mrs. Mugabe, to be elevated to
vice president and take the
pole position to succeed her
husband.
Instead, the military’s takeover of the capital marks a
dramatic shift in fortunes for
the Mugabe family—and for
this resource-rich Southern
African nation as it teeters on
the precipice of another economic emergency. A growing
number of Zimbabweans have
spent nights sleeping in bank
lines in the hope of withdrawing some U.S. dollars, which
have been the country’s dominant currency since the hyperinflation-racked
Zimbabwe
dollar was abandoned in 2009.
4.99
3.56
33.59
THE WALL STREET JOURNAL.
can remain there for years before causing disfiguring, painful swelling of body parts, resulting in severe disability. An
estimated 856 million people
in 52 countries are at risk of
infection.
Both diseases are treatable
with existing drugs that kill
the parasites.
The Gates Foundation, and
Mr. Gates personally, are
working to persuade the
U.A.E., other Middle Eastern
countries and rich individuals
to contribute more funds to
global health as part of its
overall philanthropic endeavors, which include humanitarian relief as a result of the
Syrian war.
“Overall, the amount of philanthropy in this region if you
define it broadly is as high as
anywhere in the world, probably higher,” Mr. Gates said.
For three of the past four
years, from 2013 to 2016, the
U.A.E. has ranked first among
aid donors based on a percentage of gross national income,
according to the Organization
for Economic Cooperation and
Development.
Between 2011 and 2016, the
U.A.E. donated $120 million to
help wipe out polio, a priority
for the Gates Foundation. The
virus continues to circulate in
pockets of Afghanistan, Pakistan and Nigeria. The crown
prince has also donated to malaria-elimination programs.
WORLD WATCH
CANADA
SOUTH KOREA
Materiel Offered for
U.N. Peacekeeping
Border Attempt Gets
U.S. Visitor Expelled
Ottawa said it was prepared
to offer United Nations-led
global peacekeeping forces
transport equipment, helicopters,
and specialized training, arguing
that is the most effective contribution the country can make to
security in global hot spots.
The plan, unveiled Wednesday at a peacekeeping conference in Vancouver, builds upon
Prime Minister Justin Trudeau’s
commitment since taking office
to take a higher-profile role in
U.N. operations.
Absent from the Canadian
announcement were details on
where Canadian forces or equipment would be deployed. Canadian officials said talks with the
U.N. had just started, with an
initial focus on a tactical airlift
to a U.N. center in Uganda.
Wednesday’s announcement
comes nearly 15 months after
the Liberal government pledged
to send as many as 600 members of its military to U.N. missions. Canada is maintaining
that troop commitment, but said
their deployment would depend
on the result of U.N. talks. The
troop pledge was part of Mr.
Trudeau’s effort to make good
on a postelection promise to ensure Canada is “back” with a
front-line role on the global
stage.
—Paul Vieira
The government will deport a
U.S. citizen who allegedly tried
to enter North Korea across the
heavily mined inter-Korean border on Monday, the same day a
North Korean soldier defected to
the South, according to a person
familiar with the matter.
The man, identified as Lawrence Bruce Byron, was arrested
while attempting to cross to the
North from the South Korean
county of Yeoncheon, some 40
miles north of Seoul, the person
said.
Mr. Byron, who is in his 50s
and from Louisiana, was arrested by the South Korean
Army for attempting to enter
the North without authorization
from the Seoul government, the
person said.
Mr. Byron told authorities
that he wanted to create peace
in Korea by facilitating talks between Pyongyang and the U.S.,
the person said, adding that military police and intelligence officials who interrogated him don’t
believe he is psychologically disturbed.
Mr. Byron also told local authorities that he had researched
ways to enter the North on the
internet before coming to South
Korea.
Efforts to reach Mr. Byron
weren’t successful.
—Andrew Jeong
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A9
NY
WORLD NEWS
Lebanon’s Prime Minister
Saad Hariri accepted an invitation from French President
Emmanuel Macron, in a surprise twist to political tensions in the Middle East.
By William Horobin
in Paris
and Margherita
Stancati in Riyadh
Mr. Hariri and his family
will travel to Paris from Saudi
Arabia in the coming days, a
French official said.
“It is a gesture of friendship and the will of France to
contribute to a return to calm
and stability in Lebanon,” Mr.
Macron said on the sidelines
of an international climate
conference in Bonn, Germany.
Mr. Hariri abruptly announced his resignation on
Nov. 4 from Riyadh, and has
been in Saudi Arabia since.
That has aroused suspicions
that Saudi Arabia forced the
Lebanese leader to quit.
The core cause of the current tensions is the rivalry between Saudi Arabia, a longtime patron of the Sunni
political bloc led by Mr. Hariri,
and Iran, of which the Lebanese paramilitary group Hezbollah is a proxy.
Frustrated with Hezbollah’s
dominance of Lebanese politics, Saudi Arabia became impatient with Mr. Hariri. Saudi
officials pressed Mr. Hariri to
resign and have since restricted his movements, according to people familiar
with the matter.
Saudi Arabia said Mr. Hariri
is free to move, and the premier told Lebanese television
on Sunday that he would soon
return to Lebanon. But these
assurances failed to dispel
suspicions that Mr. Hariri is
being held against his will.
—Nazih Osseiran
contributed to this article.
Italy’s Far Right Flexes Its Muscles
BY ERIC SYLVERS
MILAN—Two of Italy’s leading political forces have
shifted to the right ahead of
national elections next year in
which far-right parties are
poised to play a pivotal role,
feeding a debate over the
country’s fascist past.
A conservative coalition led
by former Prime Minister Silvio Berlusconi drew key support from one far-right party
in its victory in regional elections in Sicily on Nov. 5, firming an alliance that is expected
to carry into next year’s vote.
And Mr. Berlusconi’s conservative coalition and the antiestablishment 5 Star Movement,
which took second place in Sicily, both oppose an effort to
tighten a 1950s-era law restricting the use of fascist symbols
and propaganda. A bill passed
Italy’s lower house of Parliament earlier this year, but looks
likely to stall in the Senate.
5 Star and some other parties adopted that stance in a
bid to win over right-leaning
voters ahead of the national
election, said Michele Prospero, a political-science professor at Rome’s La Sapienza
University. The election is expected to take place in March.
“Opposing the bill against
fascist propaganda is part of a
strategy to move towards the
right” by 5 Star, Mr. Prospero
said.
A spokesman for 5 Star
didn’t respond to a request to
comment.
The jockeying comes as
countries throughout Europe
wrestle with a resurgence of
far-right movements. Polish
government leaders condemned
two groups who organized a
march in Warsaw on Saturday,
both of them named after antiSemitic fascist leagues from the
1920s and 1930s.
Italy has differed sharply
from Germany in reckoning
with its wartime past. Nazi
symbols are illegal in Germany
except for teaching purposes,
and the country has worked to
rid itself of monuments tied to
the period.
ANTONIO MASIELLO/GETTY IMAGES
Lebanon
Premier
Will Travel
To France
Members of the Italian neo-fascist Forza Nuova party took part in a nationalist demonstration in Rome earlier this month.
In Italy, dictator Benito Mussolini’s villa and bunker are
tourist attractions, and his
tomb in the town of Predappio
draws thousands of neo-fascists each year. Fascist chants
and banners aren’t uncommon
at Italian soccer stadiums.
“Italians have absolved
themselves of their fascist
past, which has never been
confronted. Is that normal after 70 years?” said Giorgio
Frassineti, the mayor of
Predappio and a member of the
center-left Democratic Party.
Mussolini’s
Fascist
Party was banned after World
War II. Yet far-right and neofascist parties have remained
a small but influential force in
Italian politics.
The far-right Brothers of Italy—which traces its roots to a
postwar party called Italian
Social Movement that included
onetime Fascist officials—has
the support of about 5% of
voters, according to polls.
Brothers of Italy is a junior
partner in Mr. Berlusconi’s coalition and provided the margin of victory in Sicily.
Some parties oppose
an antifascism law
ahead of national
elections next year.
Brothers of Italy didn’t respond to a request to comment.
The weekend of the Sicily
vote, a small neo-fascist party
called Casa Pound won nearly
10% of the vote in elections
in a part of greater Rome.
Current Italian law forbids
using fascist symbols and propaganda if the ultimate goal is
to re-establish the Fascist Party.
In practice, that has proven almost impossible to prosecute.
Yet the law was used to
deny Forza Nuova, a neo-fascist party formed in the late
1990s, a permit to hold a demonstration on Oct. 28 commemorating
Mussolini’s
1922 march on Rome, which
helped usher in his reign.
“Democracy is blocked in
Italy on certain days,” said Roberto Fiore, Forza Nuova’s
leader. The group instead held
a march in early November in
which some participants made
a salute associated with Mussolini’s Fascists.
A new bill would broaden
the existing prohibition by imposing punishment of up to
two years in jail for using
symbols or gestures to promote fascism.
“Proving that somebody doing the Roman salute or selling fascist objects is promoting fascism won’t be easy, but
that doesn’t mean we should
continue to accept everything,” said Emanuele Fiano, a
Democratic Party lawmaker
who promoted the bill.
Members of Mr. Berlusconi’s
Forza Italia party and its main
coalition partner, the anti-immigration Northern League, as
well as the 5 Star Movement,
voted against the bill, claiming
it would squelch freedom of
expression. A spokeswoman for
Northern League didn’t respond
to a request to comment.
The bill passed the lower
house in September, where a
center-left coalition has a majority. But it faces an uncertain
future in the Senate.
BY JENNY GROSS
AND WIKTOR SZARY
LONDON—Russia
has
launched cyberattacks against
the U.K. media, telecommunications and energy sectors, the
British government’s top cybersecurity official said, underscoring the possibility that Russian
attacks on U.K. computer networks are more extensive than
the government previously said.
Ciaran Martin, the head of
the government’s National Cyber Security Center, on Wednesday said the U.K. has responded
to more than 600 significant incidents in his agency’s first year,
including from hostile states.
Although he didn’t say how
many emanated from Russia, he
named the country as a specific
global threat. “Russia is seeking
to undermine the international
system,” Mr. Martin said. “That
much is clear.”
His comments follow remarks by Prime Minister Theresa May this week that Russia, through attacks and
meddling in elections, had attempted to sow discord in the
West and undermine free societies.
While the U.K. government
has said it has found no evidence of successful direct interference in its democratic
processes, lawmakers have
called for the government to
investigate the extent to which
Moscow may have sought to
influence last year’s Brexit referendum.
Following Mrs. May’s com-
Russian Bill Labels
International Media
As ‘Foreign Agents’
MOSCOW—Russian lawmakers advanced a bill
Wednesday that would allow
the government to designate
international media outlets as
“foreign agents,” a retaliatory
move after Kremlin-backed network RT was required to register as a foreign agent in the
U.S. this week.
YEKATERINA SHTUKINA/AGENCE FRANCE-PRESSE/GETTY IMAGES
U.K. Cybersecurity Official
Implicates Moscow in Attacks
Russian President Vladimir Putin, left and Premier Dmitry Medvedev.
ment, the Russian Foreign
Ministry took aim at the country’s sputtering Brexit efforts,
saying “it is understandable
that an external enemy is
direly needed to distract public attention, for which role
Russia has been chosen.”
A January report from the
U.S. intelligence community
said the Russian government
meddled in the U.S. election to
help President Donald Trump
win, an allegation Russia denies. There have been no findings of a link between Russia
and the Brexit vote.
Researchers at the University of Edinburgh said more
than 400 accounts of 2,752
Kremlin-backed accounts suspended by Twitter for attempting to interfere in the
U.S. election had also tweeted
about Brexit. Laura Cram, a
professor of European politics,
said, however, that the research team hadn’t found any
evidence those tweets had influenced the outcome of the
Brexit referendum since the
majority came afterward.
Researchers at Swansea
University said more than
150,000
Russian-language
Twitter accounts were observed for a month before and
after the referendum and became very active in the 48
hours around the vote—tweeting 45,000 times. The researchers said, however, that
39,000 of those tweets came
the day after the referendum.
The researchers looked
more closely at 10 of those accounts and found that nine
had been deleted.
Tho Pham, one of the researchers, said they weren’t
able to determine whether the
accounts were bots or humans.
Legislators in the Duma,
Russia’s lower house of parliament, voted unanimously to
amend existing law to impose
new requirements on foreign
media operating in Russia. The
legislation takes broad aim at
international news organizations, saying a media outlet can
be designated as a “foreign
agent” if it receives funding in
any form from outside Russia.
The measure awaits review
by Russia’s Senate, the Federation Council, and signature by
President Vladimir Putin be-
fore it becomes law. Viktoria
Rozhkova, chief of the Duma
press service, said the measure would be reviewed by the
Federation Council on Nov. 22,
unless approved in an earlier
session.
The new legislation follows
swiftly on promises from the
Russian government to retaliate against a U.S. Department
of Justice request that RT register under the Foreign Agent
Registration Act, or FARA,
passed by Congress in 1938.
—Nathan Hodge
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* *
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
**
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Thursday, November 16, 2017 | A9B
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A10 | Thursday, November 16, 2017
* ****
THE WALL STREET JOURNAL.
IN DEPTH
Reference Librarians Still Field Offbeat Queries
i
i
i
Continued from Page One
weak companies and bad loans
that typically happens after
downturns.
Now that the European
economy is in growth mode,
those zombies and their related debt problems could become a drag on the entire continent.
“The zombification of the
corporate sector and banks [is]
a risk for future living standards,” Klaas Knot, a European
Central Bank governor and the
head of the Dutch central
bank, said in an interview.
The Bank for International
Settlements, the Basel-based
central bank for central banks,
defines a zombie as any firm
which is at least 10 years old,
publicly traded and has interest expenses that exceed the
company’s earnings before interest and taxes. Other organizations use different criteria.
About 10% of the companies
in six eurozone countries, in-
The percentage of
zombie companies in
Italy and Spain has
tripled since 2007.
cluding France, Germany, Italy
and Spain are zombies, according to the central bank’s latest
data. The percentage is up
sharply from 5.5% in 2007.
In Italy and Spain, the percentage of zombie companies
has tripled since 2007, the Organization for Economic Cooperation and Development estimated in January. Italy’s
zombies employed about 10%
of all workers and gobbled up
nearly 20% of all the capital invested in 2013, the latest year
for which figures are available.
In some ways, zombie firms
are an unintended side effect
of years of easy money from
the ECB, which rolled out aggressive stimulus policies, including negative interest rates,
to support lending and growth.
Those policies have been
sharply criticized in some
richer eurozone countries for
making it easier for banks to
keep struggling corporate borrowers alive.
Capital misallocation
It also ties up bank capital
that could have been funneled
elsewhere, including nearly €10
billion ($11.65 billion) in Italy
and Spain from 2008 to 2013,
according to the OECD. The
misallocation of capital in
those two countries “is higher
today than at any point in time
before the crisis,” ECB executive board member Benoît Coeuré said in June.
The ECB said in late October
it would extend its giant bondbuying program through next
September, likely pushing back
the date of any interest-rate increase until at least 2019.
A small group of centralbank officials opposed the decision,
including
Jens
Weidmann, president of Germany’s Bundesbank.
In a speech in September,
Mr. Weidmann cited an academic study that concluded a
bond-buying program by the
Hoping for the best
That means the banks would
be hit with billions of euros in
additional losses if they sell
the loans. Many lenders would
rather hold on to the shaky
loans and hope for the best.
The ECB proposed last
month requiring banks to set
aside more cash to cover newly
classified bad loans. The proposal was criticized by senior
Italian officials, including former Prime Minister Matteo
Renzi.
“If they pass new rules,
credit to small businesses will
be impossible,” he wrote on
Twitter.
Some banks in Italy have begun to tackle the problem, including by announcing plans to
sell billions of dollars of bad
loans within three years. Analysts at Morgan Stanley estimate it will take the country’s
banks 10 years to reach the European average for nonperforming loans.
Banks restructured Stefanel’s debt even when the apparel maker’s financial problems worsened. The banks
continued to collect interest,
and some of the loans were repaid, but their decisions not to
wipe the debt off their balance
sheets meant the banks had
less money for healthy firms.
Stefanel’s lenders included
Banca Monte dei Paschi di Siena, where bad loans peaked at
nearly $58 billion in 2016. The
about vanished businesses and
their owners.
Mr. Wright relishes the variety in his job. A woman from
the Atlanta suburb of Alpharetta recently told him her
teenage son had been seeing
ghosts in their house. “He sees
a man, a woman, a child and,
interestingly, a dog,” Mr.
Wright said. “I’ve never heard
of people seeing dogs before.”
He offered to research her
neighborhood’s history to see
if any past events might shed
light on the apparitions.
Librarians generally are
happy to receive questions,
partly because serving lots of
people helps them justify taxpayer funding. The Hennepin
County public libraries in Minnesota calculate that they answer about 1.3 million questions
whether the hurricanes she had
been hearing about were fake
news. Ms. Bierling informed her
that numerous credible news organizations had reported the
storms.
At the Hennepin County public libraries in Minnesota, Jonathan Copeland specializes in
questions about pop music. He
said one caller wanted to find a
“nasty” song that John Lennon
wrote about Bob Dylan. The librarian identified two printed
sources referring to Mr. Lennon’s “Serve Yourself,” a sendup
of Mr. Dylan’s “Gotta Serve
Somebody.”
James Scott, a Sacramento
librarian, said one woman woke
up with a red blotch on her
skin and wanted to know if it
was in the shape of any meaningful symbol. He offered books
on symbology.
“We’ll get folks that call up
and say I woke up this morning
and I had this trippy dream and
I wonder if you have anything
that can help me,” Mr. Scott
said. He recommends books on
the interpretation of dreams.
M.FLYNN/ALAMY
ZOMBIE
ECB in 2012 had helped stabilize banks in southern Europe
and boost lending but resulted
in more loans to weak companies by the same banks. There
was no positive impact on employment or investment, the
study found.
“Some of these zombie companies are getting financed at
[interest rates of] 2% because
banks are trying to throw good
money after bad,” said Basil
Karatzas, a shipping-industry
consultant in New York. The
shipping industry has been
pummeled by an oversupply of
ships funded with cheap debt.
Economists say zombie
firms are partly to blame for
Europe’s productivity decline
in recent years.
Cement production in Italy
peaked at 47 million tons in
2007 and has since fallen
about 60%. Yet there were 24
cement producers in Italy at
the end of last year, down from
29 in 2007, according to the
Italian Cement Association
trade group.
Many cement companies are
limping along with help from
“financial doping,” said Francesco Caltagirone Jr., chief executive of Cementir Holding
SpA, one of the country’s largest cement makers.
Italy’s economy has been in
and out of recession for a decade. About 15% of loans and
credit advances from large Italian banks are nonperforming,
which means the borrower is
at least 90 days behind on payments. In the eurozone, about
6% of loans are nonperforming,
according to the ECB.
In the U.S., nonperforming
loans peaked at 5% during the
financial crisis and have since
fallen below 2%, according to
the World Bank.
Italian banks have set aside
half of the value of their $407
billion in gross problem loans
at the end of 2016, according
to the country’s central bank.
James Scott of the Sacramento Public Library and Cat Bierling of
the Des Moines Public Library answer all kinds of questions.
a year. The county’s population
is about 1.2 million.
Privacy is respected. When
someone asked the Pittsburgh library how to build a guillotine, a
librarian emailed diagrams from
a German website without asking questions.
Many people need help applying for a job online, setting
up an email account or finding
social services. Some want a
phone number; others seek
medical or legal information. A
few call in to ask for the
weather forecast or help with
household-budget calculations.
Librarians sometimes provide
recipes or instructions for making papier-mâché.
Even in Silicon Valley, where
people might be expected to be
search wizards, libraries get
plenty of questions. One caller
asked the Mountain View, Calif.,
Public Library for the address of
the White House.
“There’s no really stupid
question,” said Cat Bierling of
the Des Moines Public Library,
though some can be frustrating.
A woman recently called to ask
Italian retailer Stefanel, above, restructured its bank debt at least six times while posting losses.
Its lenders included Banca Monte dei Paschi di Siena, which was taken over by Italy’s government.
Living Dead
The number of zombie
companies has risen sharply
since the financial crisis.
Zombies as a percentage of all
companies*
10%
8
6
4
2
0
2006
’10
’15
*Zombie companies are at least 10 years old,
publicly traded and have interest expenses
that exceed the company’s earnings before
interest and taxes. Percentage shown for
each year is the median of 14 countries.
Source: Bank for International Settlements
THE WALL STREET JOURNAL.
Italian government took over
the bank earlier this year. The
bank and Stefanel declined to
comment.
As part of a new restructuring plan, two distressed-debt
funds will get a 71% stake in
Stefanel by year-end for about
$13 million.
Giuseppe Stefanel, the
founder’s son and company’s
largest shareholder, will wind
up with a stake of about 16%,
down from his previous 56%.
Banks owed $125 million by
Stefanel will see that decline to
about $110 million.
Banks demanded that Mr.
Stefanel give up control and
step down as chief executive as
a precondition for approving
the turnaround plan, according
to a person familiar with the
matter. Mr. Stefanel will re-
main non-executive chairman
and “have no control whatsoever,” the person said. Mr. Stefanel declined to comment.
The restructuring plan is a
sliver of hope to residents of
Ponte di Piave, the small town
in northeastern Italy where
Stefanel is based.
“Everybody in Ponte has
suffered, from the gas stations
to mechanics, bars, restaurants
Shipping Firms Get
Second Chances
by the bank.” Norddeutsche Vermoegen and HSH Nordbank declined to comment.
The loss is likely to hit people who live in the German
states of Hamburg and
Schleswig-Holstein, which own
about 90% of the HSH Nordbank.
That would be “bitter for local taxpayers,” said Michael
Kruse, an opposition lawmaker
in Hamburg’s state parliament.
In Germany, the five biggest
ship lenders had about $26 billion of distressed ship-related
loans at the end of 2016, according to Moody’s. The total
was equal to 37% of all shipping
loans by the banks, up from 28%
in 2015. Moody’s said the banks
needed to set aside more for
potential losses. Few banks dis-
puted that finding.
The financial crisis badly hurt
global trade and shipping companies, some of which were unable to repay their loans. Yet
there have been few bankruptcies by German shipping firms,
said Max Johns, managing director of the German Shipowners’
Association. That is another sign
banks are willing to keep weak
companies alive. In addition, an
investment structure known as
Kommanditgesellschaft funds allows ships to go bankrupt without taking down the entire firm.
In May, the ECB said it
would conduct on-site inspections at banks with exposure to
ship-related lending to ensure
that the banks are dealing with
any nonperforming loans in that
sector.
German shipping company
Norddeutsche Vermoegen
Holding GmbH & Co. KG suffered total losses of $1.1 billion
from 2010 to 2015. Its debt quadrupled to more than $2 billion,
or almost nine times revenue,
from 2007 to 2010. The company hasn’t reported annual results for 2016.
In 2016, it got a half-billion
euros in debt relief from HSH
Nordbank, a German bank that
was until recently the world’s
largest lender to the shipping industry. According to the shipping
company’s financial statements,
Norddeutsche Vermoegen made
a profit due to “loan forgiveness
and shops,” said Andrea Malisani, a cafe owner and former
head of personnel for the company in the 1990s. “The backbone of this community’s economic and social life has been
reduced to a tiny shell of itself.”
Efforts to change Europe’s
insolvency laws and bankruptcy courts could eventually
help flush out zombie firms,
speed the resolution of nonperforming loans and put the
money to better use, according
to analysts
Despite attempts to establish chapter 11-style bankruptcy procedures in Europe, it
lags behind the U.S. on efficiency of corporate restructuring and insolvency procedures.
Economists have warned
that some recent efforts to encourage debt restructuring that
would allow troubled European
companies to return to health
are instead contributing to the
problem of too many zombies.
In Portugal, a program set
up in 2012 by the government
as part of the country’s bailout
aimed to help heavily indebted
companies reach agreements
with creditors, avoid insolvency and free up money to invest and grow.
Don’t pull the plug
ROTENBERG/REX SHUTTERSTOCK/ZUMA PRESS
PITTSBURGH—Sherry Yadlosky, a staff member at the Carnegie Library in this city’s Oakland district, answered the
phone in her cubicle late in the
afternoon of Nov. 1. A woman
wanted to know who would be
pitching for the Dodgers that
night in the final game of the
World Series.
Ms. Yadlosky consulted a
sports website. “It looks like
they’re going to be starting Yu
Darvish,” she said. The caller
asked whether Mr. Darvish was
a good pitcher. Ms. Yadlosky
thought about it for a moment,
then said: “It depends on your
definition of good.”
After taking the call, Ms. Yadlosky, 28 years old, recalled a library patron who once asked
her whether bar codes on store
merchandise contained the Mark
of the Beast, a symbol discussed
in the Book of Revelation. “Um,
no,” she said.
Carved in stone over the library’s arched entrance is the
motto “Free to the People.” That
applies not just to books but to
answers for almost any question
posed to librarians.
Even in the internet age, reference librarians still dig up answers that require extra effort,
searching old books, microfilm
and paper files, looking for everything from owners of longdefunct firms to 19th-century
weather reports. Though online
searches are now at the fingertips of most people, many still
prefer to call or visit a library.
Some can’t or don’t use computers; others recognize librarians
have search skills and access to
databases that search engines
can’t match.
“I’m pre-Google,” said Kosmo Vinyl, who lives in New
York and describes himself as
an artist and cultural curator.
“I don’t think you can find everything online, at all.” He is
working on a project involving
sports history in Atlanta. “The
public library guys there have
been fantastic,” he said. After
consulting old city directories,
librarian John Wright recently
supplied Mr. Vinyl with details
PEARL SKELTON
BY JAMES R. HAGERTY
SARAH SCHOLTEN
Even in age of Google and other online searches, many prefer to draw on the skills of professionals
In practice, the revitalization program can discourage
banks from pulling the plug on
battered companies, said Antonio Samagaio, an accounting
professor at ISEG-Lisbon
School of Economics and Management.
The reason: The program allows lenders to take fewer
write-downs because debt that
isn’t forgiven still is considered
performing for accounting purposes.
Lisgráfica Impressão e Artes
Gráficas SA, one of Portugal’s
largest printers, entered the
program in early 2013. Banks
forgave 65% of the company’s
debt and agreed to extend repayments. That helped Lisgráfica keep most of its workers.
Now, though, Lisgráfica is
having trouble making its debt
payments. The company’s revenue has been hurt by the advertising decline at newspaper
and magazine clients. Lisgráfica’s losses are widening, and
it got rid of 9% of its workforce
last year.
Lisgráfica recently filed to
take part in the program for
troubled companies again. The
company declined to comment.
—Patricia Kowsmann
contributed to this article.
Kept Afloat
Norddeutsche Vermoegen's debt
grew even though it reported a
string of losses.
Bank loans
€2.0 billion
1.5
1.0
0.5
0
2006
’10
Note: Company hasn't reported annual
results for 2016.
Source: the company
THE WALL STREET JOURNAL.
’15
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.
Thursday, November 16, 2017 | A10A
NY
* *
GREATER NEW YORK
Home Buyers Fret
Over Deductions,
Rattling Market
A film crew sets up equipment on the Upper West Side. Movie and TV productions that qualify can get a 30% tax credit from the state.
Legislators Pan Tax Break
State tax credit offered
for TV and film shoots
to help spur economy
is facing new criticism
BY MIKE VILENSKY
New York lawmakers are
raising new questions about a
long-running tax program doling out millions to movies and
TV shows filmed in the state.
The 13-year-old program
pays a 30% tax credit to film
and TV productions that qualify,
an effort to encourage studios
to work in New York and spur
the state economy.
Gov. Andrew Cuomo, a Democrat, and legislative leaders
have greenlighted the program
through 2022. Now, the credits
are being scrutinized as politicians grow wary of embracing
Hollywood and are concerned
about a state budget deficit.
“It’s bad optics all across the
board,” said Assembly Minority
Leader Brian Kolb, an upstate
Republican who has called for
an end to the credits.
Criticism flared this week
when Mr. Cuomo attended a
California fundraiser for his
2018 re-election campaign with
some of Hollywood’s top executives. The event was held Tuesday at the home of Universal
Filmed Entertainment Group
executive Jeffrey Shell, according to an invitation. CBS Chief
Executive Leslie Moonves was
listed on the invitation. Tickets
were going for up to $50,000.
Both Universal and CBS have
received the tax credits, state
records show. The companies
declined to comment.
At the fundraiser, Mr.
Cuomo praised the tax credit,
an attendee said Wednesday.
Representatives for Mr. Cuomo
declined to comment on what
he said at the event, and the
campaign didn’t reveal how
much was raised.
Harry Wilson, a New York
businessman considering a GOP
2018 challenge to Mr. Cuomo,
criticized the event, calling the
tax credit “corporate welfare.”
While the governor raises
money from “those same
wealthy Hollywood producers…New Yorkers bear the cost,
and he reaps the benefits.”
Cuomo 2018 campaign chairman Bill Mulrow said: “These
attempts by the New York GOP
to distract from last week’s de-
feats in every corner of the
state are silly and frankly ineffective,” referring to the Nov. 7
election.
New York state’s economicdevelopment agency, Empire
State Development Corp., defended the program, saying that
for every $1 in tax credits
granted, the state has generated
$1.15 in economic activity.
New York having given tax credits to Harvey Weinstein’s company. A film Mr. Weinstein’s studio produced, “St. Vincent,”
received about $4 million in tax
credits, state records show.
Assemblywoman
Linda
Rosenthal, a Manhattan Democrat, said she is drafting legislation that would more stringently vet companies receiving
state tax credits to bar those
with records of sexual misconduct. A Cuomo spokeswoman
said the governor supports the
legislation. Mr. Zemsky said the
agency would “follow those reforms” if enacted.
Other legislators have questioned if the program is a good
use of state money, and if film
studios would work in New
York regardless of the credits.
State officials said they expect
to grapple with a $4 billion
budget deficit when they return
to Albany next year.
In New York City, some companies said the credits have
created jobs. “We wouldn’t be
in business without the film
and TV tax credits,” said Alan
Suna, the chief executive of Silvercup Studios.
—Erica Orden
contributed to this article.
$4B
New York state budget deficit
lawmakers face next year
To qualify, productions must
spend at least 75% of their costs
in the state, and salaries for actors and directors don’t count
toward that sum, according to
the agency.
“It has been an amazing
driver of the economy,” said
Howard Zemsky, Mr. Cuomo’s
economic-development czar.
The tiff on Tuesday is the latest controversy around the program. Earlier this month, legislators raised concerns about
Signs are emerging that
home buyers in metropolitan
New York are hesitating as they
consider the effects of proposed federal tax law changes,
setting the stage for a possible
chill in the marPROPERTY ket, brokers say.
The possible
changes in versions of both the House and the
Senate bills likely would increase the cost of homeownership and reduce after-tax discretionary income for mostly
affluent home buyers in New
York and other states with high
state and local income and
property taxes, brokers and analysts say.
Those taxes now can be deducted from income on federal
tax returns. The proposals
would reduce or eliminate that
benefit, though some of it is already offset by another federal
tax provision known as the alternative minimum tax.
The proposed tax changes
are threatening the already vulnerable high-end housing market in New York City and the
surrounding suburbs, brokers
say, as some prospective buyers put off decisions.
“People are worried,” said
Donna Olshan, president of
Olshan Realty Inc. in New York.
“They want to know how much
less money is going into their
pockets every year.”
Dawn Knief, a broker in the
Scarsdale office of Julia B. Fee
Sotheby’s International Realty,
said buyers aren’t panicking, but
they are closely watching what
is happening in Washington.
Brokers said the tax issue
regularly comes up in conversations with buyers, and some
people have put plans on hold.
In New York City, budget analysts said they might have to
reduce revenue forecasts from
the city’s transfer taxes on residential property sales because
of expectations of fewer transactions and lower prices.
The proposed tax changes
are complex and will affect
home buyers in different ways.
They were designed to reduce
taxes for many middle-income
families by lowering rates and
doubling the standard deduction
that reduces taxable income.
But both the Senate and the
House proposals reduce or eliminate deductions for state and
local taxes that are important
factors in high-tax states. The
House version would preserve a
deduction on up to $10,000 in
property taxes. Deductions of
interest paid on loans totaling
up to $1 million would be preserved in the Senate bill but
would be capped at $500,000 in
the House bill for new buyers.
The alternative minimum
tax would be eliminated, blunting a portion of the impact of
other tax changes.
According to new estimates
from New York City’s Independent Budget Office, deductions
by city residents for state and
local taxes reduced their federal
tax bills by $11.1 billion in 2015,
but 24% of that was offset by
$2.7 billion collected through
the alternative minium tax.
Hall Willkie, president of
brokerage Brown Harris Stevens, said the potential impact
of tax changes is adding to uncertainty that has already led
buyers to delay decisions and
made them price sensitive.
“This is going to create another
little pause until people get
their hands around it,” he said.
ALEXANDER COHN/THE WALL STREET JOURNAL
EDUCATION IMAGES/UIG/GETTY IMAGES
BY JOSH BARBANEL
Ridership Drop, Rising Costs Fuel Deficit
The Metropolitan Transportation Authority faces a deficit
of hundreds of millions of dollars in a few years unless it finds
alternative sources of revenue.
The agency’s chief financial
officer Robert Foran warned
MTA board members Wednesday that declining subway and
bus ridership and falling revenue from real-estate transactions pose a threat as the agency
takes on additional costs to improve subway performance.
Mr. Foran forecast that the
deficit could reach $643 million
by 2021. If the MTA fails to hit
increasingly ambitious costsavings targets and without anticipated biennial fare increases
of 4%, which require board approval, he said the deficit could
hit $1.7 billion by 2021.
Earlier this year, New York
Gov. Andrew Cuomo expressed
interest in a congestion-pricing
plan for vehicles entering Manhattan that could subsidize the
MARK ABRAMSON FOR THE WALL STREET JOURNAL
BY PAUL BERGER
In the 12 months through September, bus ridership dropped by
5.2% compared with the same period the previous year.
MTA. He set up an advisory
panel to report on possible proposals by the end of the year.
Mayor Bill de Blasio, who
believes that congestion pricing won’t pass in the state legislature, has floated an alter-
native “millionaire’s tax” on
the city’s highest earners.
Even if new funding sources
are found, it would take years
before revenue begins flowing
to the MTA. For now, Mr.
Foran told board members to
expect small budget surpluses
through 2019.
When he made a similar presentation in July, Mr. Foran forecast deficits in 2020 and beyond,
but they weren’t as deep as the
ones he outlined Wednesday. He
revised fare and toll revenue estimates down by $281 million
and real-estate transaction revenues down by $147 million.
In the 12 months through
September, subway ridership
fell 1.4% and bus ridership
dropped 5.2% compared with
the same period the previous
year. During that time, New
York City added almost 50,000
private sector jobs, according
to the state’s Bureau of Labor
Statistics.
Nick Sifuentes, executive director of the Tri-State Transportation Campaign, an advocacy
group, blamed the ridership
drop on poor performance. MTA
Chairman Joe Lhota suggested
it could be caused by more people being self-employed or
earning less money.
New York City residents’ deductions for state and local taxes cut
their federal tax bills by an estimated $11.1 billion in 2015.
For Home Buyers,
A Nudge to Florida
In Florida, where there is no
income tax, brokers say they
expect a new wave of buyers
from New York and California
interested in moving there to
reduce their taxes.
“If legislation like this passes,
I think people will be running for
Florida, that is a perfect escape
route,” said Pamela Liebman,
president of New York-based
Corcoran Group, which also operates in South Florida.
Soon after the House tax
plan was announced, Jeff
Miller, a Miami broker, said he
fielded several phone calls from
New Yorkers who had looked
at Miami Beach properties in
the past and were now getting
serious.
One couple who saw homes
in the area last year are coming
down to see a house on an island off Miami Beach listed for
$22.5 million over the summer,
Mr. Miller said.
“People I have been working
with were on the fence,” he
said. “Now they want to move.
The new tax bill was the nudge
they needed to push them over.”
—Josh Barbanel
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A10B | Thursday, November 16, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Library Rewrites Its Renovation Plans
A rendering of the proposed 40th Street entrance at the New York Public Library’s flagship Stephen A. Schwarzman Building.
roughly 20% increase in public
space for study, exhibitions
and educational programs.
They said the building’s exterior won’t change, except for
the transformation of a staff
door on 40th Street into a pub-
lic one with a plaza for school
groups, to ease congestion.
“This is the library putting
a stake in the ground—the
largest stake we’ve ever put in
the ground—to say we are reinvesting in the future of the
research library as a cornerstone to an empathetic and
creative citizenry that is informed by facts,” said New
York Public Library President
Tony Marx.
He said that all but $9 mil-
GREATER NEW YORK WATCH
Zoning Change Won’t
Stop East Side Tower
YONKERS
Empire City Casino
Explores a Sale
BY JOSH BARBANEL
JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGES
Empire City Casino at Yonkers Raceway is exploring strategic alternatives, including a
possible sale or partnership, according to people familiar with
the matter.
The privately held casino
company has retained investment bank J.P. Morgan Chase &
Co. for the review, according to
the people. It is possible the
company will ultimately decide
to remain in its current form,
the people said.
The company is situated on a
100-acre property in Yonkers. It
was founded in 1899 as the Empire City Trotting Club.
In 2001, Empire City expanded beyond horse racing and
today it has more than 5,300
slot machines as well as electronic table games.
Empire City generates more
than $600 million in gaming revenue, according to one of the
people, making it one of the
larger casino operators in the
U.S. It isn’t clear how much the
company may be worth, but
based on the revenue multiples
of other casino operators, it
could fetch more than $1 billion
in a sale.
—Dana Mattioli
lion of the funds needed had
been raised privately so far,
and construction is expected
over the next three or four
years. He said the reconfiguration would allow for quiet
spaces in upper floors, with the
Pedestrians navigated a New York City street and its gaseous peculiarities on Wednesday.
NEW JERSEY
Menendez Jurors
Still Deliberating
Jurors completed a seventh
day of deliberations in the bribery trial of Democratic Sen. Bob
Menendez and a wealthy friend
Wednesday without a verdict.
Deliberations began on Nov. 6,
but the jury restarted Monday
after a juror was excused for a
previously scheduled vacation
and was replaced by an alternate.
The trial is in its 11th week.
Mr. Menendez and Florida eye
doctor Salomon Melgen are
charged with running a bribery
scheme between 2006 and 2013
in which prosecutors say Mr. Menendez lobbied government officials on Mr. Melgen’s behalf in
exchange for luxury vacations
and flights on Mr. Melgen’s private plane.
areas for visitors and events
concentrated on lower floors.
The renovations will include new bathrooms and an
elevator, the transformation of
storage spaces for public use,
and a new Center for Research
and Learning for high school
and university students.
Critics objected to the previous plan because it called for
dismantling seven levels of
historic book stacks that held
the library’s research collection. The library shelved that
idea, and now most of those
materials are stored under
Bryant Park. The stacks now
hold books from the Mid-Manhattan Library, which is undergoing a $200 million makeover across the street.
Questions remain over what
to do long-term with the stacks,
which library officials said lack
proper climate controls for preserving archives. They said they
have commissioned a study examining the options.
A critic of the prior plan,
Stanley Katz, who directs the
Center for Arts and Cultural
Policy Studies at Princeton
University, said the new plan
had some positive features for
the public, but didn’t fix the
top priority for researchers.
“If the stacks aren’t suitable
for long-term storage without
climate controls, that would be
my first priority,” he said. “Even
if that can’t start in 2018 or ’19
it ought to be on the agenda.”
Mr. Menendez also is charged
with making false statements for
failing to report Mr. Melgen’s
gifts on Senate disclosure forms.
Both men deny the allegations.
Defense attorneys sought to
show jurors that the two men
exchanged gifts out of friendship.
They also contended Mr. Menendez’s meetings with government
officials were focused on broad
policy issues.
—Associated Press
Opponents of a planned 800foot-tall tower in Manhattan
notched a win on Wednesday
when the New York City Planning Commission approved a
zoning plan that places height
restrictions on new projects in
the Sutton Place neighborhood.
But it was a hollow victory
because the commission also
granted an exception for the
800-foot tower itself, despite
the efforts of local legislators
and neighborhood groups to
stop it.
Now, the opponents are expected to challenge the project
with the City Council.
Alan Kersh, president of the
East River 50s Alliance, said
the commission’s decision to
exclude the tower, known as
Sutton 58, “was inappropriate.”
“Make no mistake, we are
still in the fight for the future of
East 58th Street,” he said, noting that the zoning change was
about preventing “megatowers”
on “more than one site.”
Meanwhile, the developer,
Jonathan Kalikow, president of
Gamma Real Estate, is rushing
to complete the foundation of
the tower before the City Coun-
cil can act, in hopes that will
protect it from the new rules.
At the Wednesday meeting,
the Commission approved a
new zoning plan for a 13-block
Midtown area east of Third
Avenue that was drafted by
Sutton 58 opponents, led by
residents of a luxury 485-foottall co-op across the street.
The zoning change requires
developers to keep the bulk of
their buildings below 150 feet.
The city planning staff said
the change would affect only
one development site in the
foreseeable future, Sutton 58.
The commission, however, added a provision exempting buildings already under
construction.
“I do not believe that landuse applications should be
wielded to stop individual developments,” said Kenneth J.
Knuckles, vice chairman of the
commission.
The zoning change will go to
the City Council, which has the
power to amend applications.
Mr. Kalikow said the only
goal of the zoning change was to
block his project “in order to
preserve the views of ultrawealthy members living across
from the site.”
©2017 CHANEL®, Inc.
Publisher Doubles
As Event Producer
BY CHARLES PASSY
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
POIS MOI COLLECTION | robertocoin.com
On Thursday night, about
2,000 spirits enthusiasts will
gather at the New York Marriott Marquis for the 20th annual edition of WhiskyFest, a
tasting event with a top ticket
price of $345.
For them, it’s an opportunity to sample a global array
of more than 400 spirits, including pricey and often hardto-find single-malt Scotches,
bourbons and even a select
number of Japanese offerings.
But for Marvin Shanken, it’s
just another day at the office.
Mr. Shanken, publisher of
Wine Spectator, Cigar Aficionado and Whisky Advocate
magazines, is building a second
name for himself as a producer
of such events in the city.
In addition to WhiskyFest,
he hosts the New York Wine
Experience, whose 37th edition took place in October. It is
a larger affair with events that
range from seminars to “grand
tastings” to a concluding banquet. A ticket that covers all
the festivities runs $2,495.
Mr. Shanken says he has little trouble finding customers.
Many of his affairs, which include WhiskyFests in Chicago,
San Francisco and Washington, D.C., and Big Smoke cigar
events in Las Vegas and Miami, sell out.
The events, which are crossmarketed with Mr. Shanken’s
KEVIN HAGEN FOR THE WALL STREET JOURNAL
The New York Public Library approved a new master
plan to renovate its flagship library on Fifth Avenue on
Wednesday, four years after a
group of scholars sued to halt
a previous plan that would
have gutted the library’s century-old stacks.
The new plan reflects a
$317 million investment,
mostly from private donations,
in the iconic library with the
lion statues out front. That total includes $144 million already spent on projects over
the past decade, library officials said. The library will get
new research spaces, an entrance plaza and cafe.
The library’s board of trustees voted unanimously to
forge ahead.
The vote authorizes the
work of designing the changes
and allocating the funds. Officials said the public will be
able to comment on the renovation’s details.
The previous plan was
ditched in 2014 after a public
outcry in which scholars and
community groups argued the
remodel would hurt the library’s
standing among the world’s top
research institutions. Under the
new plan, the stacks stay in
place, though their future use
hasn’t been determined.
Library officials said the
new plan would bring a
MECANOO/BEYER BLINDER BELLE
BY LESLIE BRODY
Marvin Shanken is the host of
WhiskyFest and other events.
publications, generate at least
$15 million in revenue, according to Mr. Shanken, who notes
that ticket income is just one
part of the business. The wine,
spirits and cigar brands also
pay to be there. Booth prices at
WhiskyFest start at $4,200.
Brands say they are willing
to bear the cost, since the exposure to such an interested
and affluent customer base
can be key to building sales.
And the timing of the New
York WhiskyFest, which typically takes place around the
holiday season, doesn’t hurt.
The event “coincides with
one of the most important sales
periods of the year for the
whisky category,” said David
Blackmore, a brand ambassador
for Ardbeg, a single-malt Scotch.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
LIFE&ARTS
Thursday, November 16, 2017 | A11
STREAMING SERVICES
Music’s New Gatekeepers
BY NEIL SHAH
FROM TOP: WSJ PHOTO ILLUSTRATION; PHOTOS FROM LEFT: GETTY IMAGES (2); AP; ILLUSTRATIONS BY ROBERT HUNT
IN THE STREAMING ERA, a new
gatekeeper stands between record
labels and listeners: the playlist
professional.
These music geeks, some of
whom are former journalists and
radio programmers, are employed
by the biggest streaming-music services to decide which pop, hip-hop
and rock songs appear on their
playlists—the digital age’s version
of the mixtape. With streaming
driving more than 60% of U.S. record-industry revenue, they—not
radio DJs—now have the power to
control music’s hit-making machine.
Over the past four decades, music executives have grappled with
one middleman after another—radio broadcasters, MTV, big retailers
like Target and Wal-Mart Stores,
Apple’s iTunes Store. But the clout
wielded by this new group of tastemakers from Spotify and Apple Music, along with Amazon Music,
Google Play Music and Tidal, represents a sea change. After years of
decline, America’s recorded-music
business is rising again, thanks to
streaming’s rapid growth.
Streaming playlists, excluding
fan-created ones, are used by
nearly 60% of U.S. music streamers, according to Nielsen Music.
And Top 40 commercial radio programmers today often play what’s
popping on Spotify and Apple Music, instead of breaking new songs
themselves, experts say.
“It’s a brave new world,” says
David Jacobs, a music-industry
lawyer whose clients include the
rapper Aminé and ColombianAmerican singer Kali Uchis. “We’re
consolidating 60 years of regional
tastemakers, spread around dozens
of markets around the country and
the world, into one system. Basically, three or four people.”
The most influential is Tuma
Basa, according to several musicindustry experts. The global head
of hip-hop at Spotify curates RapCaviar. With around 8.3 million
followers, the playlist sets the
agenda for hip-hop the way New
York radio station HOT 97 once
did, says Larry Miller, who heads
the music-business program at
New York University’s Steinhardt
School. “He’s the most important
gatekeeper in the music business
right now,” says Mr. Miller.
Working for MTV in Atlanta in
the early 2010s, Mr. Basa watched
many of today’s rap stars hit stardom. As hip-hop became the driving force behind global pop culture, his RapCaviar and other
streaming playlists have helped
the genre rule the music charts.
“Kids used to have to go
through [music-industry] filters to
get rap. Now, they’re getting it directly,” says Mr. Basa.
In the streaming era,
playlist editors
can make or break
an artist’s career
Other prominent Spotify playlist
curators include Mike Biggane
(pop) and Allison Hagendorf
(rock), industry watchers say. Spotify, which is by far the most popular streaming service, with
roughly double the number of users as No. 2 Apple Music, employs
150 playlist curators and has 4,500
company-owned playlists.
Apple Music’s biggest influencer, observers say, is Carl Chery,
a former journalist at hip-hop
magazine XXL, who helped Apple
get exclusive rights to the premiere of Chance the Rapper’s recent album, “Coloring Book.”
Among other things, he oversees
The A-List: Hip-Hop, one of Apple
Music’s most prominent playlists.
Playlist editors use a combination of instinct and data to create
their tracklists. They want to highlight new talent and surprise fans,
but also provide a guide to what’s
hot. Curators closely track a playlist’s performance metrics: the
number of times a song is played,
skipped, completed, saved by users.
“If I love it, I want to give it a
shot. But I don’t want to forcefeed the listener,” says Mr. Chery.
“I curate objectively.”
Deciding which music to include
in a playlist, however, is getting
more difficult. Major streaming services receive a deluge of new music
every week and lack official channels for artists’ managers and record labels to lobby, prompting industry insiders—and outsiders—to
find new ways to get their music favorable placement, observers say.
The biggest labels update
streaming services regularly about
upcoming albums by email. The top
three—Universal, Sony and War-
Above, from left, musicians Frank
Ocean, Tash Sultana and Chance
The Rapper.
ner—are investors in Spotify. Superstar artists, meanwhile, often tour
companies’ offices and take one-onone meetings with playlist curators.
“It’s kind of the Wild West,”
says Mr. Jacobs, the music-industry lawyer.
Critics say this has led to playlists being overwhelmed by the
promotional machinery of major
labels. And some fear the system
also creates a way for playlists to
be bought or gamed through complex deals between artists and
streaming services—a new version
of “payola,” the illegal exchange of
payments for airplay.
Under U.S. regulations, radio
broadcasters must disclose payments or valuable quid-pro-quos
for airtime. But those rules don’t
apply to streaming services.
Spotify and Apple Music say
that nothing resembling “payola”
is occurring on their services.
If playlists were industry-dominated, they’d be dull and easy to
duplicate, Spotify’s Mr. Basa says.
Payola is “unethical,” he adds. “Neutrality is in our business interests.”
Tuma Basa, Age 42
Carl Chery, 38
Alex Luke, 49
Title: Global head of hip-hop, Spotify
Influential because: Curates RapCaviar,
considered the most powerful playlist today
As a young boy, Tuma Basa listened to his father’s reggae,
Congolese rumba and R&B records, along with pop-rock radio. (Def Leppard’s “Pour Some Sugar On Me” was a favorite.) When he moved to Zimbabwe at age 13, from Iowa
City, Iowa, his father’s boxes of records came along. “He’s
the reason I’m into music,” says Mr. Basa. In Zimbabwe, Mr.
Basa dived headfirst into hip-hop, a genre that differentiated him from his parents. Soon, he was networking with
record traders and traveling to Swaziland to dub and buy
cassettes. Two and a half years ago, Mr. Basa joined Spotify; his father now makes his own Spotify playlists of the
music Mr. Basa grew up with.
Title: Head of artist curation, Apple Music
Influential because: Works closely with hiphop/R&B artists such as Chance the Rapper
and Bryson Tiller
Asa journalist, Carl Chery conducted one of rap’s most famous
interviews. In 2007, he spoke to the rapper 50 Cent, who told
him that he would stop making solo albums if his new record
didn’t sell more than Kanye West’s album—fueling one of hiphop’s most storied rivalries. Later, Mr. Chery worked on hip-hop
magazine XXL’s annual Freshman Issue, a widely watched guide
to rising talent. Now, as a music curator, Mr. Chery says, he still
feels like a journalist in many ways, unearthing new talent.
While he’s mindful of data, he doesn’t let it determine his playlists. He will support an artist that catches his ear whether
they have “a million followers [on social media] or two.”
Title: Global head of programming and content strategy, Amazon Music
Influential Because: Amazon Music is considered the sleeping giant of streaming services
Amazon’s two streaming-music services don’t get the same media attention as Spotify or Apple Music, but they could bring the
format to a much broader audience, industry watchers say. A
big reason is Amazon’s Alexa-enabled voice-assistance devices,
which let users request, say, ’80s pop tunes from their kitchen
counter. “We’re entering a new era with ‘voice,’ ” says Alex Luke,
who manages content strategy and artist relations, and leads
the programming and playlist teams at Amazon Music. “It
changes the way customers are going to engage with music.”
Mr. Luke previously worked at Napster, Apple and EMI Music.
Please see PLAYLISTS page A12
FILM
MARY J. BLIGE SHIFTS CAREER WITH ’MUDBOUND’
NETFLIX
BY ELLEN GAMERMAN
In ‘Mudbound,’ Mary. J. Blige, in dark glasses, says she drew on pain from a breakup for the role.
JENNIFER HUDSON, Beyoncé, Britney
Spears, Justin Timberlake, LL Cool J, Madonna and other musical artists have attempted to make it as actors, with varying
degrees of success. Now Mary J. Blige is
stepping up her screen ambitions, appearing
in her biggest movie role to date.
She portrays the matriarch of a struggling farm family in “Mudbound,” a film
by director Dee Rees that arrives Friday on
Netflix and in a handful of theaters.
“This is what I want to do,” says Ms.
Blige, a 46-year-old singer-songwriter who
has won nine Grammys and sold more than
50 million records world-wide. “I want to
work very, very hard for everything and I
don’t want anything given to me easily just
because I’m Mary J. Blige.”
In the movie, which is based on the 2008
novel by Hillary Jordan, a white family from
Memphis struggles to work a cotton farm
that a family of black sharecroppers has cultivated for generations. The film is set in
the Mississippi Delta just after World War II
and follows the uneasy friendships between
the two families. Appearing at first behind
dark, rimless glasses, Ms. Blige is momentarily unrecognizable as Florence Jackson,
a mother who sees her worst fears realized
when her son Ronsel returns from the war
and encounters the bigotry and violence of
the South in the Jim Crow era.
“Mudbound,” which also stars Carey Mulligan, has received glowing reviews at film
festivals, with critics praising Ms. Blige’s
nuanced performance. The artist says she
has no plans to stop singing, and her new
song, “Mighty River,” accompanies the film’s
closing credits. This year, the R&B powerhouse, known for songs that mine personal
stories of love, heartbreak and empowerment, released “Strength of a Woman,” an
album chronicling the collapse of her marriage. It made its debut at No. 3 on the Billboard 200 chart.
As she was preparing for the role in
“Mudbound” last year, attempting to tap
into the well of pain beneath Florence’s
still surface, Ms. Blige was splitting with
husband-manager Kendu Isaacs.
Please see BLIGE page A13
A12 | Thursday, November 16, 2017
* ***
THE WALL STREET JOURNAL.
LIFE & ARTS
RJ SANGOSTI/THE DENVER POST/GETTY IMAGES
THE MIDDLE SEAT | By Scott McCartney
Airlines have figured out that if they notify customers of delayed bags through smartphones and set up delivery, they can avoid filing a mishandled baggage report with the Transportation Department.
On Some Airlines, Your Missing Bag
May Not Be Reported as Lost
Due to an accounting quirk, it’s easy for carriers to make their baggage statistics look better than they are
Several airlines have
found a slick way to avoid
counting some of the
checked baggage they lose
or delay, skewing comparisons of airline reliability.
And it may be 2019 at the
earliest before the loophole
airlines are throwing bags
through gets fixed.
Federal regulations since
1987 have required that airlines tally the number of
mishandled bags monthly
and report them to the
Transportation Department.
Specifically, airlines must
disclose the number of mishandled baggage reports
that travelers file at airline
baggage offices—the paperwork where you describe
your suitcase and give the
airline an address for delivery once it turns up.
That turns out to be a
key distinction. American
Airlines rolled out messaging that notifies customers
when a bag didn’t make a
flight and asks for delivery
instructions. United and
Delta say they are about to
do the same. That’s a huge
convenience for inconvenienced passengers: No anxious waiting at the baggage
carousel for a bag that
won’t show. No standing in
line for baggage-office paperwork.
But no paperwork means
no report, airline executives
say, so the lost or delayed
bag never gets counted as
mishandled in DOT statistics. American and United
say they are complying with
the regulation, even though
they won’t be reporting all
their mishandled bags. Delta
says it has decided to set up
its mobile app to generate
the same report as going to
the baggage office, and the
mishandled bags will be reported to DOT.
A DOT spokeswoman says
the agency is aware of what
airlines are doing and looking into whether it “impacts
the way airlines report mishandled baggage data.”
After American began
proactive notification at the
end of July, its rate of mishandled bags plunged 32%
in August to 2.8 reports per
1,000 passengers, from 4.12
in August 2016.
Monthly numbers bounce
around because of weather
problems or airline meltdowns that affect baggage
handling. But these numbers
represented by far the best
August in four years for
American. (August is the
most recent month DOT has
reported.)
American says the improvement resulted from
many initiatives, primarily
more scanning of bag tags,
so the airline can do a better job of monitoring bags’
whereabouts. The customer
notification and reporting
change was just one factor,
a spokesman says, and
“certainly not” the reason
for the statistical improvement.
United was scheduled to
begin proactive notification
last spring but says the baggage alerts have been delayed, with launch now expected for the first quarter
of next year.
Delta says it has been notifying customers of baggage status since 2010 but
still directs customers to a
kiosk or baggage service office to file a report, which
does get reported to DOT.
That will change, Delta says,
JetBlue, for example, says
it doesn’t think airlines
should be singled out for reporting operational statistics while bus and rail lines,
car-rental firms and hotels
don’t have to publicly report
performance.
The DOT calls the current means of
measuring mishandled bags ‘outdated.’
but the reporting to DOT
will remain the same.
The reporting dodge
came to light after the Middle Seat reported it in
March. Some airlines may
follow suit. Others say they
are talking to DOT about a
fix that would level the
playing field on baggagehandling performance.
“However, as long as requirements for airlines remain, they should be applied
equally across all airlines,” a
JetBlue spokesman says.
“We would applaud the DOT
for closing any loopholes
that, left unchecked, would
leave the traveling public
with a less-than-accurate
portrayal of actual perfor-
mance.”
Southwest reports all
mishandled bags to the DOT,
a spokesman says. The airline says it has participated
in discussions with the DOT
and other airlines about
mishandled baggage reporting guidelines and awaits
further direction from the
government.
That may be awhile. The
DOT actually issued several
changes last year to improve
mishandled baggage reporting, including a change to
require reporting the number of mishandled bags instead of the number of mishandled bag reports. It also
requires reporting the number of bags checked instead
of the number of domestic
passengers boarded.
DOT currently compares
the number of domestic
mishandled baggage reports
against the number of domestic passengers. But
checked baggage fees
changed passenger behavior,
DOT said in its final order.
So it wants to calculate mishandled baggage rates by
comparing delayed, lost,
stolen, damaged or pilfered
bags to the total number of
checked bags.
The department calls the
current means of measuring
mishandled bags “outdated.”
The changes were scheduled to begin at the start of
2018. But last January, the
Trump administration issued a temporary freeze on
new regulations. A week after the freeze was issued,
Airlines for America, the industry’s lobbying organization, requested a one-year
delay. The DOT decided to
delay the rules change until
Jan. 1, 2019.
PLAYLISTS
Continued from page A11
ADVERTISEMENT
To advertise: 800-366-3975 or WSJ.com/classifieds
FRANCE
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Mike Biggane, 39
Allison Hagendorf, 37
Title: Global head of rock, Spotify
Influential because: The most important
tastemaker for young rock bands looking to
get traction online
Rock music may not be the driving force on Spotify that hiphop is, but it’s alive and well on the live-music scene, says Allison Hagendorf. “That’s where rock ’n’ roll culture lives,” she
says. A former music executive and television personality, Ms.
Hagendorf previously helped shepherd albums by artists such
as Coheed and Cambria as an A&R executive at Columbia Records. “I’ve always wanted to be the liaison between artists
and their fans,” she says. When it comes to new rock acts, she
recommends Royal Blood, Tash Sultana and Greta Van Fleet.
“It’s refreshing—and almost an anomaly—for young kids to be
playing their own instruments and writing the songs themselves,” she says. Getting rock fans to stream, she says, is “a
work in progress.” “I’m on a mission to help evolve the genre.”
Title: Head of pop, Spotify
Influential because: Oversees “Today’s Top
Hits,” which has 18 million followers, among
other playlists
Like many people in the music business, Mike Biggane got
his start playing in a band and trying to get signed. It didn’t
work out. But his fascination with pop’s hit-making machinery
led him to a job at HitPredictor, a research firm that studies
how songs perform on the radio. In late 2014, Mr. Biggane
joined Spotify. In radio, information about listeners takes
weeks to gather. In streaming, it’s instantaneous, which helps
curators like Mr. Biggane know when tracks are going viral or
burning out. “Hopefully I’m good at listening to the audience,”
he says, “hearing what they like, and guiding them to more.”
Five more playlist professionals to know: Rocío Guerrero
(Latin and global music, Spotify), whose Baila Reggaeton
playlist has over 6 million followers; Elliott Wilson (hip-hop,
Tidal); Arjan Timmermans (pop, Apple Music); Tony Gervino
(Tidal); Jerry Pullés (Latin, Apple Music).
ROBERT HUNT (ILLUSTRATIONS)
Leisure Travel
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A13
MUSEUM OF THE BIBLE (3)
LIFE & ARTS
MUSEUM REVIEW
A Sweeping Portrait of the Bible
The museum, partly clouded by scandal, is a reminder of the unparalleled influence of the Good Book
BY EDWARD ROTHSTEIN
The Museum of the Bible’s main entrance, featuring the Gutenberg Gates, above left, and the immersive ‘World of
Jesus of Nazareth,’ a re-creation of a first-century village, above right; among the museum’s collection are fragments
from the Gutenberg Bible, top.
room, and a rooftop biblical garden. Artifacts range from a papyrus copy of Psalms in Greek to R.
Crumb’s 2009 graphic-comic Genesis; from a first-millennium palimpsest of overwritten texts to a
Dolce & Gabbana T-shirt imprinted
with Raphael’s “The Holy Family.”
The museum incorporates kitsch
and commentary, history and hallelujahs. The astonishing thing is
how far it succeeds—though not
without missteps.
It’s the brainchild of Steve
Green, the president of Hobby
Lobby—a family-owned, Christianity-centered company with $4.4
billion in sales last year. Its religious beliefs led to a lawsuit
Hobby Lobby brought, challenging
Obamacare’s mandated contraception coverage; in 2014, the Supreme Court ruled in the company’s favor. In 2010, the museum’s
stated mission was “to bring to life
the living word of God…and to in-
BLIGE
Continued from page A11
“I was just going through hell in
my own personal life—I didn’t
know exactly what was going on,”
she says.
While working with Los Angeles
actor and acting coach Tasha
Smith, Ms. Blige says she put “all
of the hurt and pain and embarrassment and shame” she was feeling into her performance. “I would
go over to [Ms. Smith’s] house
crying every single day. She would
say, ‘Give it all to Florence.’”
The film world can be fraught
for singers. Some have shined on
screen, with icons such as Frank
Sinatra and Barbra Streisand
building sturdy movie careers. And
in 2007, Ms. Hudson won the bestsupporting actress Oscar for
“Dreamgirls.” But it has been 15
years since Ms. Spears’s “Crossroads” and Madonna’s “Swept
Away,” and audiences still remember those critical flops.
Ms. Rees, who co-wrote the
film, drafted new material for
the character of Florence from the
novel with Ms. Blige in mind. She
had been moved by the singer’s
emotionally raw performances in
concert. “It’s like a therapy session
with 30,000 people—she’s not just
singing lyrics at you, she’s reliving
it,” says Ms. Rees.
The director isn’t new to singers who act, having cast hip-hop’s
Queen Latifah in the title role of
“Bessie,” her 2015 TV movie about
blues singer Bessie Smith. “I cast
by face and emotion,” she says.
Her past films include the 2011
critically lauded “Pariah,” about a
spire confidence in the absolute
authority and reliability of the Bible.” Was this museum, then, going
to be a variant of the Creation Museum in Kentucky, which preaches
the Bible’s literal truth?
The Museum of the Bible’s reputation also suffered in July, when
Hobby Lobby agreed to pay $3
million to settle a government
lawsuit alleging the smuggling of
artifacts into the U.S.; many were
seized by the government; thou-
Mr. Rothstein is the Journal’s
Critic at Large.
The Song-to-Screen
Report Card
JUSTIN TIMBERLAKE Music: By the time he had roles on
the big screen, the singer was a
long way from his boy-band roots.
Big role: He played Napster founder
Sean Parker in the 2010 David
Fincher hit “The Social Network.”
BEYONCÉ
Music: The singer launched her solo
music career shortly after her theatrical film debut.
Big role: She broke into movies as
Foxxy Cleopatra, a parody of a blaxploitation heroine, in the 2002 Mike
Myers movie “Austin Powers in
Goldmember.”
Director Dee Rees, left, with Mary J. Blige on the 'Mudbound' set. Ms. Rees
said she cast Ms. Blige after seeing one of her emotionally charged concerts.
young lesbian’s exploration of her
identity.
Before shooting, Ms. Rees retrieved her grandmother’s journal,
which included descriptions of
her great grandmother picking
cotton in Louisiana before World
War II. She shared entries from
the diary with Ms. Blige.
Ms. Blige also drew on memories of her childhood summers,
when her mother sent her from
Yonkers, N.Y., near New York City,
to her grandparents’ farm in Savannah, Ga. As a girl, she worked
in the vegetable garden and
watched her aunts break turkeys’
necks with a flick of the wrist, a
move she recreates in the film.
Ms. Blige’s screen-acting resume
includes Tyler Perry’s “I Can Do
Bad All by Myself” in 2009, “Rock
of Ages” in 2012 and a starring
role in the TV movie “Betty &
Coretta” in 2013. She has gueststarred on the TV series “Empire”
and “Black-ish” and played the
wicked witch in the 2015 TV musical movie “The Wiz Live!”
She will be an executive producer of “8 Count,” a new, music-driven drama for Fox that follows a young choreographer. A
representative says she will not
appear in the show.
Friend and acting coach Ms.
Smith says Ms. Blige came to their
sessions early, lines memorized,
ready to work. “I feel like people
are going to see a part of Mary
they’ve never seen before,” she
says.
LL COOL J
Music: The rapper was one of the
first hip-hop artists to achieve
mainstream commercial success.
Big role: He is best known as Special Agent Sam Hanna, an ex-Navy
SEAL, in TV’s “NCIS: Los Angeles.”
.
JENNIFER HUDSON Music: Before movies, audiences
knew her for her seventh-place finish on “American Idol” in 2004.
Big role: Her fiery turn as Effie
White in “Dreamgirls” landed her the
2007 best-supporting actress Oscar.
MADONNA
Music: The pop star’s big movie
break came in 1985 with “Desperately Seeking Susan” but was overtaken by her music career, which
was surging after the earlier release
of her album “Like a Virgin.”
Big role: The singer’s acting credits
include high-profile films like “Evita,”
but one of the roles she may best
be known for is a part few people
paid to see—her turn as a spoiled
socialite in “Swept Away,” a flop directed by then-husband Guy Ritchie.
MARK WAHLBERG
Music: As Marky Mark, he was a
rapper known for strutting his rippling bod in performance.
Big role: He went from naive Eddie
Adams to porn star Dirk Diggler in
the 1997 movie “Boogie Nights.”
LADY GAGA
Music: With hits like “Paparazzi”
and “Poker Face,” it’s almost easy
to forget the meat dress.
Big role: Next year, she stars in a
remake of “A Star Is Born” opposite
Bradley Cooper, who also directs.
CLOCKWISE FROM LEFT: NETFLIX; EVERETT COLLECTION (2)
Washington
THE Museum of the Bible, which
opens Friday three blocks from the
U.S. Capitol, is brazenly monumental.
Its 2.5-ton front gates are 38-foot-tall
bronze replicas of the first two press
plates of the 15th-century Gutenberg
Bible. Perhaps the building itself—a
converted 1922 refrigerated warehouse redesigned by the architects
SmithGroupJJR—is a consequence of
that very same printing press.
There are humbling matters to
be addressed—including controversy over the (lowercase) creator’s motivations, as well as scandals over undocumented
provenance—but the museum’s
first impression overshadows
earthly concerns. The lobby once
allowed the unloading of freight
cars that entered through the
same portal as today’s visitors.
The ceiling’s surface—140 by 15
feet—is covered with 555 LED panels showing images, including the
Sistine Chapel ceiling, the night
sky and museum artifacts: cosmic,
human and museological grandeur.
We enter a structure incorporating
eight floors and 430,000 square
feet that cost a half-billion dollars
to build.
It also boasts the latest technologies, theaters with immersive effects, a children’s area (Collapse
the Philistine temple like Samson!
Walk on water like Jesus!), a ball-
sands were ceded by Hobby Lobby;
illegal looting from Iraq was also
asserted. The Wall Street Journal
reported that the museum staff
has vetted the provenance of the
2,840 objects on display. But there
remain over 40,000 other artifacts
in the Green collection.
Perhaps, in time, the museum’s
reputation will be restored, because the museum certainly managed to redefine its mission. During the past three years, staff has
changed. Scholars were consulted.
Perspective has widened. Biblical
truth is no longer an issue. And
ecumenism? One gallery will regularly host loans from the Vatican;
another, loans from the Israel Antiquities Authority.
In the museum’s most extensive
exhibition—a history of the Bible—
redirection is evident. The initial
focus is on similarities between
biblical stories and those of other
cultures. We learn something
about post-Exilic Judaism. And we
see a chronicle of Christianity’s
spread, from early writings to
manifold translations.
Despite the plenty, though, we
learn nothing of biblical authorship and textual analysis; there is
no account of Christianity’s reinterpretation of the Hebrew Bible,
nor are there outlines of the
schisms over interpretation that
divided the Catholic Church; contemporary controversies over homosexuality and abortion are unmentioned; we don’t even learn
much about Jesus. The absence of
Islamic and Mormon examples of
Biblical allusion and revision is
also notable.
But the history is still potent, as
are explorations of the Bible’s impact. European settlers’ views of
an Arcadian America were inspired
by the Hebrew Bible. (Some Puritans advocated making Hebrew the
American language.) The Bible inspired the American academy and
imprinted itself on political life. It
shaped the language of Lincoln and
promised liberation to enslaved African-Americans. One enormous
gallery shows its influence on science, language, names, fashion,
politics, medicine and justice.
Where the museum falls most
short is in its telling of biblical
stories. The section on the Hebrew
Bible was not complete when I visited. But why have an exhibition
about a village from the time of
Jesus—an uninspired walk-through
diorama? The New Testament section is a proselytizing computeranimated film lacking the Gospels’
narrative verve.
But for all the flaws, scandal
and incompleteness, does any
other institution present so sweeping a portrait? There is justifiable
unease over Mr. Green’s recent attempts to create a school curriculum. But under the guise of separation of church and state—and by
treating the Bible as a source of
social evils rather than as a sophisticated, supple and contentious text—the Bible has been
widely removed from the public
sphere and education. The museum is a response. It begins to let
us see how important the Bible
has been to Western culture and
religion, and how great the loss
would be if it did not remain so.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A14 | Thursday, November 16, 2017
SPORTS
MLB
In Search of Kinder, Gentler Managers
Orlando, Fla.
DUSTY BAKER managed the
Washington Nationals to the National League’s second-best record
in 2017. John Farrell guided the
Boston Red Sox to their second
straight title in perhaps baseball’s
most competitive division. Joe Girardi helmed a “rebuilding” New
York Yankees squad that defied
the odds and finished one victory
short of the World Series.
All three men are now out of
work, the first time in history
three managers went from the
playoffs to the unemployment line
in the same winter. The dismissals
have sent shockwaves across an
industry that long viewed a postseason appearance as a safety net.
Executives at the general managers meetings here this week
murmured surprise at the high
turnover among seemingly successful skippers this offseason.
“One manager got fired that won
90-something games, and nobody
expected them to,” one GM said.
“Dusty averaged 96 wins in his
two years there. That’s not good
enough?” said another.
Apparently not, a phenomenon
that represents another enormous
step in the rapidly evolving—and
in some ways diminishing—role of
major-league manager.
Experience means little nowadays. Gruff, surly personalities
need not apply. The modern manager, once the heartbeat of a team
who controlled virtually everything that happened in the dugout,
now exists as a cog in a much
larger machine where the real authority comes from above.
Today’s organizations want
younger, gentler leaders prepared
to collaborate with increasingly
powerful front offices. Managers
must embrace analytics and demonstrate the willingness to rely on
data—typically provided by their
superiors—in their decision-making process.
“There’s no room for gut decisions and hunches,” Yankees GM
Brian Cashman said.
Most important, managers
must connect with their players in
a hands-on, nurturing way, with a
level of personal intimacy that
would make a grizzled baseball
lifer blush.
The Nationals replaced Baker
with Dave Martinez, a first-time
manager who worked as the bench
coach under Joe Maddon, the Chicago Cubs skipper known for his devotion to numbers and zany antics
to create positivity in the clubhouse. The Red Sox tapped 42-yearold Alex Cora, another rookie manager who didn’t stop playing until
2011. The Yankees’ list of candidates
will likely follow that pattern, with
Aaron Boone and Hensley Meulens
likely next in line to interview.
Alex Cora, left, chats with Astros
first baseman Yuli Gurriel.
Jeter: Stanton Trade
Isn’t a Done Deal
All told, four of the five managers already introduced this offseason had never previously managed
in the majors.
“It speaks to the importance of
the personal qualities—communication, collaboration—as opposed
to just what’s going on on the
field,” New York Mets GM Sandy
Alderson said.
Alderson would know. The Mets
parted ways with 68-year-old
Terry Collins last month and filled
his spot with Mickey Callaway, the
42-year-old former Cleveland Indians pitching coach more than a
quarter-century Collins’s junior.
Alderson said Callaway’s commitment to fostering relationships
with his players emerged as “one
of the most important aspects of
the job description.”
Asked to lay out the criteria
that led to Martinez’s hiring, Nationals GM Mike Rizzo immediately jumped to, “Somebody that
can certainly relate to all sorts of
players.” Red Sox president of
baseball operations Dave Dombrowski rattled off an entire list of
characteristics about Cora that
featured “connecting with the
players,” “the ability to motivate”
and “being able to communicate
with the front office, with ownership and with the media.” He also
highlighted Cora’s bilingual background as a crucial factor.
Almost no trait mentioned involved actual baseball strategy or
ideas about things like lineup
construction or bullpen usage. To
the Nationals and Red Sox, what
Martinez and Cora can bring as a
tactician paled in comparison to
what they could offer as a connector of people.
Much of this stems from the
rise of the celebrity general manager. When the Houston Astros
won the World Series, much of the
focus revolved around GM Jeff
Luhnow’s rebuilding plan, with
manager A.J. Hinch receiving
credit for executing the vision.
Seattle Mariners GM Jerry Dipoto said the most important aspect for a manager is “understanding how to take an organizational
philosophy and connect the majorleague club to that philosophy.” Ingame strategy comes from conversations across the organization, not
simply from the manager’s office.
“We’re collaborating on that element,” Dipoto said. “What we
don’t have is the ability to connect
to a human being the way a man-
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conference call with reporters—a
test of sorts to see how would
handle the New York media.
On the call, a writer asked
Thomson how he planned to distinguish himself from Girardi. After couching his response by saying he didn’t “want to compare
myself to Joe,” Thomson said, “My
strengths are my communication
and my trust with the players.”
“I want to know what’s on their
mind and in their heart all the
time,” Thomson said.
To manage in the major leagues
in 2018, that’s a requirement.
The WSJ Daily Crossword | Edited by Mike Shenk
Weather
30s
ager and his staff can connect.”
Mariners manager Scott Servais,
in fact, vows to speak individually
with every player every day, usually
about a topic other than baseball,
like their children or their hobbies.
When asked if managers during his
playing days did that—a group of
skippers that included Dallas Green,
Don Baylor and Jim Leyland—Dipoto burst into laughter.
“Before, you could have a manager who was effective as more of
a commanding, loses-his-temper
individual,” said Dombrowski. “In
today’s game and world, you lose
players if you do that.”
No team embodies that principle better than the Yankees. They
chose to let Girardi’s contract
lapse after 10 seasons that included a 910-710 record, six postseason appearances and a World
Series title in 2009. Nonetheless,
Cashman said he decided to make
a change because of concerns with
Girardi’s “ability to fully engage,
communicate and connect with the
playing personnel.”
Girardi’s potential successors
received the message. Last week,
Cashman interviewed Rob Thomson, Girardi’s bench coach, for the
position and then put him on a
ORLANDO, Fla.—Derek Jeter
has been the Miami Marlins’
CEO for about six weeks. He still
hasn’t spoken to his best player.
This might not ordinarily raise
any eyebrows. But when your
best player’s future is as uncertain as Giancarlo Stanton’s is in
South Florida, the revelation that
Jeter had yet to reach out to
him came as a bit of a surprise.
“If there’s a reason to call, I’ll
call,” Jeter said Wednesday here
at baseball’s general managers
meetings. “But at this point,
there’s no reason to call.”
Stanton, the Marlins’ hulking
outfielder who bashed 59 home
runs last season, has been the
subject of intense trade rumors
from the moment a group led
by Jeter and businessman Bruce
Sherman bought the franchise.
His status was a major topic of
conversation at the general
managers meetings here this
week, with the San Francisco
Giants, St. Louis Cardinals and
Philadelphia Phillies emerging as
potential landing spots.
Jeter, however, refused to
commit to parting with Stanton.
“I understand the assumptions. I
do,” Jeter said. “But we have not
publicly come out and said we
that are trading any particular
player.”
Jeter also called the Marlins’
performance “unacceptable,”
both as a baseball team and as
a business. “There are some financial things we have to get in
order, that’s the bottom line,” he
said.
—Jared Diamond
L-R: BOB LEVEY, CHRISTIAN PETERSEN (GETTY IMAGES)
BY JARED DIAMOND
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Seoul
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Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
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43
48
81
79
63
88
73
66
56
65
89
72
73
54
38
93
50
92
86
62
88
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86
77
85
58
43
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45
39
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Lo W
34 pc
32 pc
68 sh
72 c
54 c
76 sh
51 pc
46 s
35 sh
38 s
78 pc
59 r
46 pc
35 s
29 sn
70 pc
39 pc
76 s
56 pc
45 s
77 sh
32 s
59 r
76 t
67 pc
71 c
45 pc
26 c
36 sh
34 c
25 pc
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45 31 c
48 33 s
80 67 pc
80 73 s
63 54 c
91 76 t
74 51 pc
72 48 s
48 36 pc
66 40 s
88 78 c
76 56 sh
74 47 pc
54 36 s
36 33 c
92 70 pc
51 36 sh
93 75 s
83 55 s
63 45 s
88 76 sh
47 27 r
70 49 r
86 75 t
75 67 t
86 70 pc
57 49 pc
38 32 pc
46 38 pc
43 35 c
42 32 pc
2
3
4
5
6
15
7
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
24 18 sn 25 16 s
Atlanta
66 42 pc 65 46 s
Austin
80 66 sh 83 65 pc
Baltimore
57 35 s
52 36 s
Boise
51 34 sh 46 28 pc
Boston
48 35 r
45 29 s
Burlington
46 29 c
35 23 pc
Charlotte
67 36 s
61 40 s
Chicago
41 32 pc 44 42 r
Cleveland
43 32 r
47 41 pc
Dallas
70 62 sh 81 65 pc
Denver
71 46 s
65 26 pc
Detroit
43 28 c
44 39 c
Honolulu
84 70 pc 83 69 pc
Houston
81 65 pc 83 69 pc
Indianapolis
43 29 pc 49 46 c
Kansas City
52 43 pc 65 42 sh
Las Vegas
78 65 pc 75 48 pc
Little Rock
63 48 c
74 64 c
Los Angeles
76 61 c
71 54 pc
Miami
81 71 c
82 72 pc
Milwaukee
40 33 pc 44 40 r
Minneapolis
38 33 c
44 29 r
Nashville
57 34 s
62 54 pc
New Orleans
76 57 s
78 62 pc
New York City
55 38 r
49 36 s
Oklahoma City
61 53 c
76 50 c
Flurries
Showers
65 “Cryptonomicon” 19 Status follower
author
21 Fragrant tree
Stephenson
24 Met highlight
17
18
19
66 May bloomer
25 Wallop
67 Hefty rival
20
21
22
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68 Reason for an
Voice” org.
23
24
25
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26 27
28
29 30 31 32
69 Gearshift
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33
34
35
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order they’re
30 Had faith in
36
37 38 39
40
41
shifted in the
starred answers 31 Frightful
42
43
44
45 46
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32 Shoots up
47
48
49 50
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38 Color-changing
“Transformers”
accessory
51 52
53
2 Till section
39 Spot
54 55 56
57
58
59 60
3 Masked, say
40 Track star
61
62
63
Devers
4 Put together
64
65
66
43 Hawked Hawks
5 80-year-old
tickets, say
General Mills
67
68
69
cereal
46 Worse off
6 City at the
49 Kill time, in a way
SHIFTING GEARS | By Alice Long
north end of the
50 Black Mission or
Gateway to the
Across
25 Doofus
45 “For two cents
Brown Turkey
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I’
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leave
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26 Withhold his
52 Negating link
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blamed country
control
favorite chew
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54 Berlin product
and never come
toy?
6 Behind
___ it agin”: Huck
7 Soap additive
55 Missing, to MPs
29 Sweepstakes
10 Archaeopteryx
Finn
8 Burmese male
56 Rick’s old flame
fine print listing
descendant
47 “The Black
9 Real rush
57 “Here I disclaim
33 King Salman,
14 Painter
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all my paternal
10 Kentucky
e.g.
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48 •Enthusiasts of
care” speaker
Gentleman,
15 1966 NL batting 34 Crimson booer
newspaper
for one
59 Make like a shark
champ Matty
columns?
35 Galba succeeded
11 Sarcastic reply
60 Peaceful episode
16 Carry out
him
51 Opie’s dad
12
Cassette
part
62 Highest suit?
17 Market
36 Letter
53 Blotto
13 Newton fraction 63 Coding product
measure
resembling a
54 One might be on
trident
18 •Rollicking
top of the deck
Previous Puzzle’s Solution
royal?
37 •Bit of godly
T A U R U S
I O N
S O U L
57 Footing for birling
A
S P E C T
C R O
T H A T
graffiti?
20 About 17 million
H A S S L E
E N T H U S E D
58 Slicer spot
square miles
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A P P R O V E D
41 Potpie spheroid
E A T S
A S T
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61 •Having a
21 It might be fixed 42 Supreme
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fly-by-night
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by a plumber
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I R T
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cost?
architect
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T A I L L I G H T S
22 Go lickety-split
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M
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63 Facilitated
23 Respectably
C A I R O
U R I
P R E P
T O T T E R E D
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64 Trunk, e.g.
unadventurous
44 Buckeyes’ sch.
R A R I T I E S
G O L D E N
1
14
I R A N
OMN I
F R I
F I T
A L P E R T
D E S O T O
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | A15
OPINION
Bonfire of the Prosecutors
American politics has become an endless fox hunt.
The hounds’
heads jerked
up this week
WONDER
on news that
LAND
Attorney GenBy Daniel
eral Jeff SesHenninger
sions,
responding to a
request from House Judiciary
Committee Chairman Bob
Goodlatte, had asked the Justice Department’s career lawyers to look into the possibility
of appointing a second special
prosecutor, to investigate Hillary Clinton.
Set aside for a moment
what the precise meaning of
“investigate” might be. The
day doesn’t pass anymore
without a demand, from the
Oval Office or the ozone, that
someone should “look into”
some political malefaction.
Theoretically, we could have
public officials being led to the
executioner’s block weekly in
Washington.
Indeed, the movement to
name a second special prosecutor flows from the fact that
the Washington press corps in
January decided en masse to
“look into” the notion that the
Trump campaign had colluded
with Russia to defeat Mrs.
Clinton, a thought dropped
into the water by the departing
Obama administration.
What followed was a river of
stories purporting Trump-Russian collusion. Months later, it
remains true that the federal
code recognizes no crime
called “collusion.” Eventually
the river of collusion stories
joined with Oval Office mania
over them to produce special
prosecutor Robert Mueller.
A fiction exists that Mr.
Mueller represents the “rule of
law.” In truth, Mr. Mueller
looks about as relevant as a
lawyer wandering around the
smoking battlefield at Gettysburg. We are in the midst of a
multifront political war—between Republicans and Democrats, and President Trump
and the Beltway media.
The central, contested issue
in this war is the acceptability
of Mr. Trump’s presidency. The
Trump opposition believes
that a Trump presidency remains unthinkable and abhorrent, so opposing it is a moral
imperative. But however intense the imperative, it’s nothing more than that, because
the formal politics are moot.
Mr. Trump received more Electoral College votes than Mrs.
Clinton.
But so deep is the antipathy
to the existence of a Trump
presidency—forget that someone has to deal with North Korea’s nuclear-armed missiles,
the Middle East or the U.S.
economy—that the opposition
has spent nearly a year hoping
just one more Russian collusion
story would . . . do what? Make
Mr. Trump evaporate?
So there is a kind of delicious temptation to embrace
the idea of a second special
prosecutor to “investigate” the
Clintons. Why not? A lot of
people on the right and left
have been spoiling for a street
fight over the 2016 election, so
let’s have it out. Light the
torch and set off a bonfire of
special prosecutors.
The people who brought us
the Trump-Russia collusion
narrative are now weeping
crocodile tears that the appointment of a second prosecutor would mean that President Trump is politicizing
and weaponizing the Justice
Department. Oh my. They
should have thought of that
before they approved how the
nation’s security agencies
weaponized the press last
January.
Partisan animosities
are pushing the U.S.
toward a significant
political crisis.
Time to sober up. A self-indulgent American political
class, reveling in perpetual tumult, is pushing the U.S. toward a significant crisis. The
appointment of a second special prosecutor would bring
that crisis closer.
Primary U.S. institutions are
already on thin ice with the
American people. Start with
the malperformance of institutions once thought trustworthy, whether the unprecedented collusion leaks from the
intelligence agencies or James
Comey’s ham-handed and toopublic tenure at the FBI.
Mr. Mueller’s team of prosecutors represents a rebuke of
the Justice Department’s
credibility and standing. His
first act, the Paul Manafort indictment, was a pre-existing
case that Justice offloaded to
Mr. Mueller. If Mike Flynn or
anyone else has violated the
Foreign Agents Registration
Act, Justice should prosecute,
not the deus ex machina of a
special prosecutor.
Political accountability remains crucial in a system as
open as ours, and historically
the press has provided much of
that oversight. That’s changed.
The media’s referee role has
morphed into relentless political tendentiousness.
The media dresses up its
collusion stories with insinuations that something illegal
has occurred. In fact, the criminal law’s traditionally high
bar of proof is being replaced
by a weaker, more volatile
standard from prehistory. In
short, where’s there’s smoke,
there must be guilt, so erect a
special prosecutor to concoct
indictments. This is a formula
for creating unappeasable political resentments. Pressure
builds; the system blows.
If you want to hate Donald
Trump, feel free. But a sane
world would have dropped the
Russia stuff months ago, just
as a sane world would get over
Hillary’s crimes so that what’s
left of the country’s institutions could get back to normal
governing.
It won’t happen. Politics as a
permanent bonfire has become
both a thrill ride and a business
model. But let me wonder who
benefits from this scenario:
The day that the Trump Justice Department names a Clinton special prosecutor will be
the day Mr. Trump’s impeachment is guaranteed, if the
Democrats take the House in
2018. After that, let ’er rip.
Write henninger@wsj.com.
Two Tax Reforms Can Be Better Than One
By Karl Rove
F
or all the talk of differences between the
drafts of the House and
Senate tax-reform proposals,
there are remarkable similarities in their goals and many
of their big-ticket items. Let’s
run through the list of what
both bills do:
Place the principal emphasis on growth and the secondary emphasis on tax simplification: check and check. Give
middle-class filers a big tax
break by doubling the standard deduction: check. Increase the child tax credit:
check. Cut rates for the middle class: check. Cut the corporate rate to 20%: check. End
double taxation of foreign
profits earned by American
companies by moving to a territorial system: check. Provide
for the repatriation of foreign
profits currently stranded
abroad: check. Lower tax
rates for pass-through small
businesses: check.
Credit for this wide agreement goes to tax reform’s
“Gang of Six,” a group that includes four legislators—
Speaker Paul Ryan and Majority Leader Mitch McConnell,
along with House Ways and
Means Chairman Kevin Brady
and Senate Finance Chairman
Orrin Hatch—and, from the
other end of Pennsylvania Avenue, Treasury Secretary Steven Mnuchin and Gary Cohn,
the director of the White
House National Economic
Council.
This bunch began meeting
this spring in Mr. McConnell’s
Senate office, and they have
been speaking regularly ever
since. It helps that none of
these gentlemen have sharp
edges, especially not Messrs.
Brady and Hatch, the two
charged with drafting the legislation. But the Gang’s closeddoor meetings drew predictable criticism. Lesser lights in
both chambers wanted seats
at the table for their factions,
or for the sake of their egos,
Differences between
the House and Senate
plans could be used to
improve the final bill.
or perhaps so as to leak to reporters. Wisely, the Gang ignored the hubbub.
The work took on new urgency after the Senate failed
in September to repeal and
replace ObamaCare. It became
clear that if Republicans
failed on tax reform, too, 2018
would turn into a GOP rout of
epic proportions.
There are some differences
between the House and Senate versions, but in some
cases this could lead to a better final bill. Take the deduction for state and local taxes.
The House eliminates the deduction for state income
taxes and sales taxes but provides a deduction for up to
$10,000 in property taxes.
Consider the impact in New
Jersey: There, property taxes
are below $10,000 for 90% of
filers. And with the bigger
standard deduction and lower
rates, even many of the 10%
of taxpayers with higher
property taxes would be better off than today.
The Senate kills the state
and local deduction altogether—easy for it to do
since there isn’t a single Republican senator from the big
high-tax states. When the
legislation goes to conference
committee, the Senate’s hard
line will help limit how generous House leaders need to
be in negotiating with GOP
holdouts.
But many Republicans from
tax-heavy states already recognize what Rep. Tom Reed is
saying: The House version of
the deduction would help his
constituents in Western New
York, whereas current law
benefits wealthy Manhattanites and subsidizes Albany’s
mania for high taxes. The
same pattern applies in other
blue states. Ironically, Democrats are staunchly defending
a tax break that mostly benefits the rich.
Other differences between
the two proposals are less significant. The House has just
four tax brackets for individual filers, which is simple. The
Senate keeps seven brackets,
which provides a smoother
transition as incomes rise. Either way, both plans have
enough simplification built in
that 90% or more of Americans could file their returns
on a large postcard.
Then there’s the Senate attempt to repeal ObamaCare’s
individual mandate. House
leaders support this idea but
were wary of putting it in
their bill, having been burned
by the Senate’s earlier ObamaCare failure. Yet the wily Mr.
Hatch seems confident he has
the votes. If he’s correct,
watch the House quickly accept that provision in conference committee.
Still, passing tax reform
will be hard. To fit within the
budget reconciliation framework, the bill cannot add
more than $1.5 trillion to the
deficit over the next decade
(equivalent to 3% of federal
revenue over the period). So
if negotiators change one
provision in a way that reduces revenue, they need to
change another provision to
offset it.
After the measure is signed
into law, Americans will see
early results on Jan. 1, when
their paychecks get bigger as
the lower tax rates take effect. But all Republicans, especially the president, must
work to persuade voters that
the corporate tax reforms are
adding jobs, raising paychecks, helping the economy
grow, and making America
more competitive.
The House will vote Thursday, while the Senate aims to
vote the week after Thanksgiving. The Republican majority depends in good measure
on their success. So does the
country’s prosperity.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
Will Republicans Raise Capital Gains Taxes?
By Mark Bloomfield
And Oscar S. Pollock
W
hat ever happened to
cutting the capital
gains tax? When Barack Obama took office, the
top rate on most capital gains
was 15%. By the time he left,
two tax hikes had raised it to
23.8%. That’s where the congressional Republican tax-reform plans leave it. But under
the Republican plan, many individual investors would end
up paying higher taxes on capital gains.
That’s because the plans
propose abolishing the deduction for state and local taxes,
or SALT. Many states, New
York and California among
them, include capital gains in
taxable income and tax them
at the same rates as wages.
Without the SALT deduction,
a taxpayer’s total bill will be
higher.
New York City residents, for
instance, pay a top income-tax
rate of 12.7%—8.8% to the
state and 3.9% to the city. In
California the top rate is 13.3%.
Absent the deduction, then,
New York City and California
investors in the top bracket
That would be an
effect of abolishing
the SALT deduction.
would pay a total—federal,
state and local taxes—of 36.5%
and 37.1%, respectively, on
their capital gains.
The top federal rate on ordinary income is 39.6%, so deducting state and local taxes
reduces their burden by that
proportion for high earners. In
theory that should lower the
total capital-gains tax to 31.5%
in New York City and 31.8% in
California. In practice the figures are somewhat higher,
since other provisions of the
federal tax code—the alternative minimum tax and the
Pease phase-outs of deductions—reduce the value of the
SALT deduction for high-income taxpayers. But every investor who itemizes and lives
in a state that taxes capital
gains would face some increase
under the GOP plans.
These top combined federal, state and local tax rates
on capital gains are already
higher than in Germany (25%),
the U.K. (28%) and Italy (26%);
and the post-SALT rates in
New York City and California
would exceed even those in
France (34.4%).
High capital gains taxes
have implications beyond individual investors’ tax returns. The Congressional Budget Office has documented
that the Obama-era tax hikes
created a lock-in-effect. Realizations of capital gains are
well below earlier years, even
as stock indexes have reached
new highs. The lock-in of capital gains reduces the mobility
of private capital—and, more
important, its flow to the
new, small and rapidly growing companies that create the
most jobs.
To improve an otherwise
good tax plan and avoid raising
the burden on capital gains,
Congress should reduce the top
federal rate to the pre-Obama
level, 15%. That would be a cut
even in SALT-free New York
and California. We project that
such a step would double the
realization of capital gains,
making it a revenue boon for
both the federal government
and the states that would suffer from the loss of state and
local income tax deductibility.
Mr. Bloomfield is president
of the American Council for
Capital Formation. Mr. Pollock
is a director of Ingalls & Snyder LLC.
BOOKSHELF | By Maxwell Carter
Lost and Found
In the Raj
Empire Made
By Kief Hillsbery
(Houghton Mifflin Harcourt, 259 pages, $25)
I
n February 1788, on the fourth day of what would
become the seven-year corruption trial of India’s first
governor-general, Warren Hastings, Edmund Burke
rued the disconnect between the conduct of Englishmen
at home and abroad: “This geographical morality we do
protest against; Mr. Hastings shall not screen himself
under it. . . . We think it necessary, in justification of ourselves, to declare that the laws of morality are the same
everywhere, and that there is no action which would pass
for an act of extortion, of peculation, of bribery, and
oppression in England, that is not an act of extortion, of
peculation, of bribery, and oppression in Europe, Asia,
Africa, and all the world over.” Burke’s argument is well
and good where domestic mores are just—
but when the home system’s “laws of morality”
are backward and repressive? In “Empire Made,”
Kief Hillsbery unravels an
old family mystery and
puts Burke’s universal
morality to the test.
For generations, rumors
swirled around Mr. Hillsbery’s “mother’s
grandfather’s great-uncle,”
Nigel Halleck—that he left
the East India Co. in the
1850s “under some sort of
cloud”; that he went
“native” in Nepal; that he
was an “opportunistic jewel
thief” who stole the Koh-iNoor diamond, shaved off 83 of its
269 carats and retired on the proceeds; “that
he met his end in the mouth of a man-eating tiger.”
Interweaving Mr. Hillsbery’s own stop-start, decadeslong
attempt to illumine and understand Halleck’s obscure
past, “Empire Made” tells the story of an outsider in India
at the dawn of the Raj.
Halleck was born in Coventry, England, in 1822. Like
many second sons with limited prospects, he enrolled in
Haileybury, the East India Co.’s training college in
Hertfordshire, at age 18. (“Drunkenness, lack of discipline,
and wild local wenching” were, Mr. Hillsbery suggests, the
marks of the Haileybury boy.) On graduating, he was
posted to Calcutta, Dacca (the capital of modern-day
Bangladesh) and Patna and crossed paths with the
company’s brightest lights, John Nicholson and Henry
Lawrence. He quit the service in 1851, settling in Nepal,
where he died in 1878.
This much was known. The movements and motivations
of Halleck’s post-company career were not. (That East
India Co. alumni who chose to remain abroad were
considered eccentric speaks volumes about the quality of
its governance.) Mr. Hillsbery inherited Halleck’s diaries,
which bring his aims and attitudes into focus. Halleck
venerated the accomplishments of British scholar-soldiers,
including translator Henry Rawlinson, botanist Robert
Carey and archaeologist Warwick Ball: “Without war we
should know almost nothing of Afghanistan, or suspect
the existence there of that worth knowing.” He viewed the
The author investigates the disappearance of
a distant relative—who left service in the East
India Co. under mysterious circumstances.
“frantic” proceedings of the “fishing fleet” (single English
women undertaking the six-month journey to India to
capitalize on the colony’s favorable male-to-female ratio)
with amused detachment. Mostly, Mr. Hillsbery contends,
he felt out of step with the company’s prevailing get-inget-out ethos: “The idea that the fate of the empire
depended on paying close attention to the welfare and
wishes of its inhabitants was as out of date as a tricorn
hat. [Halleck] doubted that anyone of importance had
espoused such a policy in India for at least fifty years.”
Mughal rule had been predicated on the cooperation of
the people; the East India Co.’s crown-sanctioned
monopolists were tragically unaccountable to them.
In 1975, Mr. Hillsbery found evidence of Halleck’s later
whereabouts in Kathmandu—an 1850 ledger listed one
“Mr. Hillock” as observing the maneuvers of the Nepalese
army. As he speculates, “The vowels were wrong, but the
timing was right.” (His assumption is perfectly reasonable. While I was living in Mumbai several summers ago,
laundry I sent out came back addressed to “Mr. Mase
Carfa.”) As it transpired, Halleck wasn’t traveling alone.
Mr. Hillsbery’s observations and descriptions are
memorable. He styles his mother “an ardent monarchist . . . of the sort found these days mostly among
expatriates like herself, who revel in the glory without
paying for the privilege.” Of Halleck’s stay in Patna: “Ruin
by flood. Ruin by fire. Ruin by feud. Ruin so complete, Nigel
discovered to his dismay after he arrived, that it left no
ruins.” India’s sixth governor-general, Richard Wellesley,
was “a haughty Old Etonian whose excessive vanity caused
him to wear his medals and decorations even in bed.”
In Mr. Hillsbery’s hands, Halleck’s tale—about one East
India Co. man’s experience rather than company annals—
transcends ancestral curiosity. What was the company man’s
lot? Why stay on India? What of its 19th-century sights and
sounds? Traditional company histories tend to neglect these
questions; Mr. Hillsbery’s personal approach doesn’t.
“Empire Made” isn’t without errors. “History” had not
“proved that unification of India into one state was possible.” Neither the ancient Mauryans nor the Mughals ever
achieved true union. The British did not play “what came
to be known as the Great Game with the reckless abandon
of a compulsive gambler.” If they had, they would have
marched across Central Asia and on to Saint Petersburg
rather than dithering about Russia’s perennially anticipated invasion. And, contrary to Mr. Hillsbery’s aside, the
expression “in the nick of time” predated John Nicholson’s
heroics in the 1857 Sepoy Mutiny by some 300 years.
Mr. Hillsbery concludes that Halleck’s mysterious exile
wasn’t about jewels, tigers or spies, but love. A love not
yet recognized in England. “England was another planet,”
Mr. Hillsbery reflects. The “screen” of geographical
morality had its uses, after all.
Mr. Carter is the head of the Impressionist and modern
art department at Christie’s in New York.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A16 | Thursday, November 16, 2017
OPINION
T
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Appeal of Mandate Repeal
Different Explanations for Republicans’ Rout
he House is poised to pass tax reform on Americans into the exchanges. Yet on all the evThursday, while Senate Republicans idence millions of these people haven’t signed
have fortified their draft to include a re- up even with the mandate, in large part because
peal of ObamaCare’s individual
premiums are rising and docKilling the ObamaCare tor networks are growing
mandate. The latter is being
denounced as an attempt to tax will make it easier to more restrictive due to the
deny Americans health insurfaulty design of the Affordable
ance, but Republicans can re- restore insurer subsidies. Care Act. More than six milbut this falsehood and achieve
lion American households in
two policy goals with one re2015 decided that ObamaCare
form if they don’t flinch from the debate.
products weren’t worth the cost even though
Republicans are right to want to repeal the they had to pay the tax. Nearly eight in 10 of
mandate that fines Americans who don’t buy those people earned less than $50,000.
health insurance. Their dual motive is to repeal
ObamaCare has also pummeled folks above
the most loathed part of the Affordable Care 400% of the poverty line. These individuals—a
Act as well as to make tax reform comply with couple earning about $65,000—are forced to
the Senate Byrd Rule that dictates no deficits buy a product they often cannot afford. They
outside a 10-year budget window.
are not eligible for tax credits or cost-sharing
The individual mandate scores as a savings payments to mitigate the damage, and if they
of $338 billion over 10 years that will be rede- don’t buy insurance their mandate fine can be
ployed mostly for tax relief for individuals. The as large as $1,390.
savings continue in year 11 and beyond, which
All of this is causing even CBO to revisit the
means the 20% corporate rate can be perma- accuracy of its mandate forecasts. CBO says in
nent. This is important for sound tax policy and its most recent estimate that the agency has
business investment.
“undertaken considerable work to revise”
With Trumpian accuracy and restraint, Dem- methods on estimating the mandate repeal, and
ocratic Senate leader Chuck Schumer says this that this new thinking isn’t reflected in its latest
means the GOP “kicks 13 million people off work. In other words, CBO is waking up to the
health care to pay for tax cuts for the wealthy. reality that the mandate is a limp tool for en13 MILLION.” The figure is from a Congressional couraging people to buy health insurance.
Budget Office estimate that 13 million more
Democrats are also invoking opposition to
would be uninsured by 2027.
mandate repeal from the insurance industry,
This has little relationship to reality, as even which is especially rich. What industry doesn’t
CBO and its scoring allies are starting to admit. want government to force people to buy its
Thomas Barthold of the Joint Committee on products? But tax credits for low-income folks
Taxation testified this week that the bill has “no expand with premium increases, so the poor
provision related to Medicaid.” Yet CBO as- will be made whole even if premiums rise on the
sumes that five million people would drop off exchanges.
Medicaid, which is free. Why would millions
Our bet is that repealing the mandate makes
abandon free health care simply because there’s it easier for Senators Lamar Alexander and
no tax for not buying it?
Patty Murray to pass their bipartisan deal to reEven CBO concedes that its estimates are store insurer subsidies in exchange for conces“inherently imprecise” because it’s “difficult” sions on state flexibility. This could be a worthy
to predict how insurers, individuals and other trade. The GOP’s right flank will have an easier
parties would respond. That’s for sure: time voting for the deal with the policy victory
ObamaCare enrollment is 60% below what CBO of mandate repeal in the bank. Moderate Reestimated.
publicans like Lisa Murkowski (Alaska) and SuSome Americans no doubt would decide not san Collins (Maine) will have assurance that the
to buy insurance if they aren’t hit with a tax, but exchanges will be kept on life support.
that would be their choice. Republicans aren’t deRepublicans needn’t be defensive in this denying them anything. No other ObamaCare rule bate because it is solely about giving Americans
or mandate would be changed, and no benefit the freedom to choose. The question they
formula would be altered. Anyone who still wants should ask Democrats: If ObamaCare’s insuran ObamaCare policy could still buy it.
ance offers such great coverage at affordable
Democrats nonetheless say this tax coercion prices, why does it require political coercion to
is necessary to drive more young and healthy force people to buy it?
Z
Zimbabwe’s Coup by Any Other Name
imbabwe’s generals swear what they President Emmerson Mnangagwa, whom Mr.
started doing in the early hours of Mugabe fired last week for becoming an alterWednesday morning isn’t a coup, but it nate center of power within the party.
sure looks like one. By the end
As gratifying as it is to watch
Mugabe may be out,
of the day, long-time strongthe scorpions fight, the victims
man Robert Mugabe was under but his party will remain as always will be Zimbabwe’s
house arrest, his wife Grace
people. Mr. Mugabe’s misrule
was rumored to have fled the to plunder the economy. has left them lurching from one
country, and state media and
bout of starvation, disease and
the main airport were under
hyperinflation to another, while
military control.
the country’s rulers enrich themselves.
It would be nice to think the military is belatThis coup offers little hope of immediate imedly punishing the Mugabe regime for the eco- provement. After the crisis in Harare dies down,
nomic and political misery it has inflicted on the government still will be focused mainly on
Zimbabwe’s people for the 37 years the Old Man patronage politics coupled with often violent
has been in power. But the coup’s motives are suppression of political dissent. Mr. Mnangagwa
more venal and arise from a power struggle allegedly was responsible for his share of the rewithin the ruling Zanu-PF party.
pression as Mr. Mugabe’s security chief in the
The generals who have long been silent part- 1980s.
ners in the Zanu-PF government worried that
Zimbabwe may escape one trap by avoiding
the 93-year-old Mr. Mugabe’s moves to position a ruling family dynasty, and that’s a precondition
his 52-year-old wife as his successor imperiled for the political and economic reforms Zimbatheir own influence. The main goal of the coup bwe needs to have any shot at prosperity. But the
may be to push Mr. Mugabe out before he could country that once was Africa’s bread basket
realize his dynastic ambitions. To that end, the needs a total overhaul of its governance, not
military might bring back recently deposed Vice merely a coup, and that day is not here.
A
Adios, Richard Cordray
merican business breathed a small sigh
A first priority is to drop the bureau’s appeal
of relief Wednesday after Consumer Fi- in PHH Corp. v. CFPB that the D.C. Circuit Court
nancial Protection Bureau director Rich- of Appeals is reviewing en banc. A three-judge
ard Cordray announced his respanel last year held that the
The next director will agency’s structure is unconstiignation. He may now become
Ohio’s problem, assuming he
because it leaves the
have to rein in a rogue tutional
runs for Governor, but his redirector unaccountable to anyplacement will have his work progressive bureaucracy. one, including the President.
cut out reforming the bureau’s
But the full D.C. Circuit vacated
deep progressive state.
the panel decision, and its libMr. Cordray spent his ignoble five years as di- eral majority could soon set a precedent that uprector targeting politically unpopular industries holds the bureau’s structure.
such as pay-day lenders, for-profit colleges and
In an ideal world, the Senate would take up
student loan servicers. Wherever there was a reforms passed by the House this year that
business loathed by progressives, he was there. would replace the director with a bipartisan
One of his greatest hit-jobs was prosecuting auto five-member commission subject to Congressiodealers—which Dodd-Frank prohibited the bu- nal oversight and appropriations. The bureau is
reau from regulating—for discrimination by ra- currently funded on autopilot by the Federal Recially profiling alleged victims based on their serve. Republicans could potentially fold some
last names. Yet the bureau was sleeping while structural changes to the bureau into next year’s
Wells Fargo opened up some 3.5 million unau- budget reconciliation bill.
thorized accounts. It swept in to impose a $100
Meantime, Mr. Cordray’s replacement could
million penalty after the Los Angeles City Attor- begin to implement procedural reforms recomney discovered the fiasco.
mended by Treasury—such as issuing formal
A couple of Mr. Cordray’s right-hand deputies guidance or rule-makings before taking enforcehave stepped down in recent months, but pro- ment actions that reinterpret the law. The bugressive stalwarts remain in control. The Trump reau should only impose monetary penalties afAdministration can name a temporary place- ter regulated parties are notified that they are
holder at the agency under the Vacancies Act, but breaking the law.
the CFPB may resist White House oversight and
Treasury also suggested that the bureau file
elevate its current deputy director.
complaints in federal court rather than using biThis makes it all the more imperative for the ased in-house administrative law judges and isTrump Administration to name a new director. suing sweeping civil investigative demands that
One good choice would be George Mason Univer- short-circuit legal discovery. But the biggest
sity law professor Todd Zywicki, who knows fi- challenge for the next director will be reining in
nancial markets and consumer regulations.
a bureaucracy built by Elizabeth Warren.
Regarding your editorial “The
Anti-Trump Wave” (Nov. 9): I’m one
of the Virginia state legislators who
was swept out of office by the political undertow on Nov. 7. In addition to
a surge in Democratic turnout, it was
apparent that many previously reliable GOP voters stayed home, effectively voting to abstain. Why? While
they believe in the conservative principles of limited government, free
markets and individual liberty, they
also want to tell their children and
grandchildren (and believe for themselves) that the president is someone
they should be proud respect and
look up to. They can’t do this because
the president doesn’t model good behavior, and the result is Republican
voter fatigue. As one locally elected
Republican in Northern Virginia told
me during my campaign, “When Donald Trump comes on TV, my wife
turns the TV off. He’s not someone
she wants our kids to watch.”
Election losses by GOP candidates
will continue to be the collateral
damage caused by a president whose
behavior prevents too many Americans from looking up to him.
JIM LEMUNYON
Oak Hill, Va.
over the independent voters who had
voted for President Trump last year.
It’s difficult to understand whom he
was targeting in his campaign. Also,
many voters thought Mr. Gillespie
acted as if he was entitled to be governor. The election’s significance isn’t
a rejection of Donald Trump but
rather an affirmation that you either
run with President Trump or run
against him but don’t run sitting on
the fence.
In the New Jersey gubernatorial
election, the voter turnout was the
lowest turnout for a statewide election in ages. This win gives the Democrats four out of the last six gubernatorial elections. To suggest the
Garden State victory was a negative
reaction to Donald Trump is to ignore the outright animosity the current Republican governor has engendered across the board.
BOHDAN SHANDOR
Bonita Springs, Fla.
Your editorial and Karl Rove’s “A
Mass Extinction for Virginia Republicans” (op-ed, Nov. 9) place the blame
for Republican losses squarely on
President Trump’s shoulders. I guess
that’s easier than pointing fingers at
the Republican-controlled Congress
The cause of the Republican loss in that has yet to demonstrate any abilVirginia starts and ends with the GOP ity to govern. I was a Republican
candidate—Ed Gillespie. The fact that since I was old enough to vote, but
he lost says more about President
not any more. The people supported
Trump’s strength and coattails than
and elected Mr. Trump because he
his weakness. Mr. Gillespie, fearing a was the first candidate in many years
backlash in the populous northeastto address problems that concerned
ern part of the commonwealth, not
the average voter. The political elites
only didn’t embrace President Trump, who criticized him now have the conhe purposely ignored him during the
trol to accomplish what the people
campaign (except for taking Hail
want, but lack the moral courage or
Mary robocalls at the end). He failed willingness to act. I and many of my
to rally the Trump base, who saw Mr. Republican friends don’t blame the
Gillespie as a poster boy for the espresident; the blame falls squarely on
tablishment as a candidate and a for- Congress.
mer lobbyist. Mr. Gillespie didn’t
ROGER NORTH
Maryville, Mo.
even attempt to make the case to win
The Good, or Attainable, as Foe of the Perfect
Jason Furman is ignoring history
when it comes to major tax reforms
(“The Middle-Class Tax Cut That’s Really a Hike,” op-ed, Nov. 9). One only
has to look at how the Reagan tax
cuts in the 1980s helped spur GDP
growth to just under 4% during that
decade. Cuts in individual tax rates
inevitably generate significant spending activity, which in turn bolsters
our consumer-driven economy and increases revenue to the Treasury.
On the corporate side, reducing
our uncompetitive U.S. corporate tax
rate by 15 percentage points, combined with the repatriation of trillions of dollars parked offshore, will
spur domestic and foreign investment in the U.S. and will increase
the demand for workers, resulting in
higher wages. This is a far different
outcome than Mr. Furman’s static
analysis and more consistent with
history.
RANDY KELLY, CPA
Cardiff-by-the-Sea, Calif.
Mr. Furman posits that a family
making $59,000 would pay approximately $50 more in 2024 than it
did last year, based on David
Kamin’s work. Mr. Furman surely
must understand that, especially in
the D.C. swamp, “the perfect is the
enemy of the good.” While House
Speaker Paul Ryan’s plan may not
be perfect, it certainly would be labeled as good by that same hypothetical family as they spend or
save the more than $4,700 in tax
The Risks and Incentives
Of Producing Drugs, M.Ds.
Under the heading “Risk, Reward
and the Pricing of New Drugs” (Letters, Nov. 2) Jason Acevedo, M.D.
argues that drug costs can be controlled if we “uncouple pharmaceutical R&D from marketing and distribution.” Patients would pay only the
actual cost of producing the pill
they take, while “investors” would
pay all of the costs of drug discovery and testing. Couldn’t this same
logic be applied to office visits to
doctors?
Couldn’t the cost of training to
become a doctor—the medical
school tuition, the thousands of uncompensated hours, etc.—be “uncoupled” from the cost of seeing a doctor? Patients would merely pay the
median wage for the time they
spend with the doctor, and investors
could pay for all of the other stuff.
It’s true that in this situation very
few people would “invest” in becoming or funding a doctor. How will
the same logic encourage the discovery of new drugs?
LAURA NIELSEN
Hyrum, Utah
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.
cuts (per Mr. Kamin’s chart) accumulated through 2023. Meanwhile,
it buys Congress more than six
years of time to achieve the perfection in the tax code seemingly expected by Mr. Furman (and the rest
of us).
DOUGLAS A. VOLK
Gwynedd Valley, Pa.
I’m a social and fiscally conservative Republican, retired comfortably
in the 25% tax bracket. I just ran
through my tax estimate for 2018
assuming no state and local tax deduction and no personal exemption
per latest “tax cut” proposals. Guess
what, my taxes will increase by 30%.
As an investor, I applaud the corporate tax cut, but this fiddling with
individual taxes is a fraud.
CLARENCE NEWBERRY
Ballwin, Mo.
It is encouraging to see that Prof.
Furman apparently has been born
again on deficits and the national
debt, as he criticizes the additional
debt that would accompany the proposal. I can’t recall his expressing
similar concerns when he was part
of the Obama administration, which
almost doubled the national debt in
eight years.
GENE LABER
Punta Gorda, Fla.
Is It Stockholm Syndrome or
Fear of GOP Constituents?
Regarding the letters of Nov. 9:
Blue-state Republicans apparently
feel betrayed by their party for eliminating state and local tax deductions
and limiting the deduction for mortgage interest. Perhaps this sense of
betrayal explains why the Republican
Party is so weak in these states; party
members have succumbed to the
Stockholm Syndrome. Democrat leaders have enlisted them unwittingly in
the tax-and-spend policies that they
embrace, as long as it is somebody
else’s money they are spending. Some
Republicans!
THOMAS M. MICHAELS JR.
Naples, Fla.
Pepper ...
And Salt
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Thursday, November 16, 2017 | A17
OPINION
By Roger Pielke Jr.
I
’ve worked alongside climate
researchers for decades. Almost all of them are ethical,
dedicated to science and not
particularly political. But
some leading figures and organizations in this community are weakening the norms that make science robust. A lawsuit filed in September
and recently made public is a case
in point.
An energy researcher sues
another over a critical
paper. It’s the wrong way
to resolve such disputes.
Mark Z. Jacobson, a professor of
civil and environmental engineering
at Stanford, is suing fellow renewable-energy researcher Christopher
Clack, CEO of Vibrant Clean Energy
LLC, for critiquing his work. Also
named as a defendant is the National Academy of Sciences, which
published Mr. Clack’s paper in its
flagship journal. Mr. Jacobson alleges that Mr. Clack’s paper contains
reputation-damaging “fabrication
and falsification.”
Mr. Jacobson argues that the
world can obtain all its energy from
100% renewable technologies, a
claim endorsed by celebrities, advocacy groups and politicians. Mr.
Clack’s paper, with 20 accomplished
co-authors, takes issue with Mr. Jacobson’s claims. Based on my experience reading and reviewing thousands of scientific papers over more
than 25 years, Mr. Clack’s critique is
utterly typical scientific discourse,
regardless of whose arguments ultimately prevail. Even if Mr. Jacobson
turns out to be right on the merits,
he is wrong to seek to resolve the
matter in court.
In a 1942 essay, sociologist Robert
K. Merton articulated a set of norms
that underlie modern science.
Among them is “organized skepticism.” Scientific understandings are
built upon an edifice of claims and
counterclaims, evidence and counterevidence. Over time, robust ideas
survive, while weaker ones are left
behind but are nonetheless valued
because they help to make those
that endure even stronger.
Mr. Jacobson’s lawsuit is only the
latest example of deviance from
Mertonian norms in climate and energy research. Consider Michael E.
Mann, director of Penn State’s Earth
System Science Center. In 2012 he
sued a fellow scientist and several
journalists for defamation over their
mean-spirited and crude characterizations of his work.
Another of Merton’s norms is
“universalism”—that the substance
of scientific claims is what matters,
not the characteristics of the people
advancing them. A layman has as
much right to challenge a scientific
claim as a scientist does. But Mr.
Mann’s case illustrates an important
asymmetry: Scientists are bound by
ISTOCK/GETTY IMAGES
A Litigious Climate Threatens Scientific Norms
Mertonian norms, but nonscientists
are not. Mr. Mann’s critics were unfair, obnoxious and wrong, but adherence to Mertonian norms means
that Mr. Mann not respond in kind,
much less go to court. It may seem
unfair, but what makes science different from ordinary political discourse is also essential to making
science strong.
That’s especially important for
situations in which public trust in
science is at stake. The Washington
Post and two dozen other news organizations oppose Mr. Mann’s lawsuit, explaining: “While Mann essentially claims that he can silence
critics because he is ‘right,’ the judicial system should not be the arbiter of either scientific truth or
correct public policy.” The lawsuit,
they argue, will “chill the expression of opinion on a wide range of
important scientific and public policy issues.”
But Mr. Mann’s departure from
scientific norms has met with no
sanctions from his peers. To the contrary, since he filed his lawsuits, he
has earned more than 20 professional “honors and awards.” He is
celebrated as a champion in climate
scientists’ war against “deniers.”
Similarly, in rationalizing his own
lawsuit, Mr. Jacobson has labeled
his critics as industry shills, warning that Mr. Clack’s paper is not
only wrong but “dangerous.” Leading scientific organizations have
been silent. Perhaps they see the
dissonance in supporting Mr. Mann
but criticizing Mr. Jacobson, or perhaps they haven’t had time yet to
give Mr. Jacobson awards.
With long-held norms being
flouted in settings as diverse as the
White House and the National
Football League, perhaps it is naive
to expect more from science. Still,
climate science and policy are too
important to allow the erosion of
norms to continue. The world is
struggling with how to develop climate policies that are politically
palatable and practically achievable. Climate and climate policies
are fundamental not just to the
global economy, but life on earth.
If there ever was a topic that
would benefit from more debate, it
is this one.
As Merton observed, norms are a
reflection of what is “right and
good.” We should expect researchers to uphold behaviors and practices that have made science one of
the most widely trusted institutions
among the public for many decades—even, perhaps especially, if
their opponents do not.
The scientific community should
strongly oppose the use of lawsuits
to settle scientific debates. But this
alone won’t be enough. It is time for
leading voices and institutions to
look beyond the politics of climate
and articulate a full-throated defense of the longstanding professional norms that make science the
single best approach to securing
knowledge useful for navigating an
uncertain future.
Mr. Pielke is a professor of environmental studies at the University
of Colorado, Boulder. He is author of
“The Edge” (Roaring Forties, 2016)
and “The Climate Fix” (Basic, 2011).
My Administration Made New Jersey Better—and It Wasn’t Easy
By Chris Christie
W
hen I became governor of
New Jersey in 2010, I inherited a fiscal mess. Because
the previous administration had balanced the budget with a series of
one-shot revenue gimmicks, my team
faced an 18-month projected deficit
of $13 billion. Property taxes had increased 70% in a decade. The top income tax rate was 10.75%, and a 4%
corporate business tax surcharge sat
atop New Jersey’s already high business tax. We had a 9.8% unemployment rate, and the unemployment insurance trust fund was more than $2
billion in debt.
That wasn’t all. For 14 straight
years, New Jersey’s governors had
starved the state pension system
while granting ever larger pension
benefits to public employees. For
nearly a quarter-century the number
of state employees—and their pay—
had been well above the national average. When I arrived in Trenton,
New Jersey was at a low point for
private-sector employment, having
shed 250,000 private-sector jobs in
2008-09 and netting zero new private-sector jobs from 2001-09.
How do you dig out of that kind of
hole in one of the bluest states in
America?
First, my administration enforced
fiscal responsibility in its annual budgets. We balanced that $13 billion
deficit by cutting spending and eliminating more than 100 programs. We
reduced the use of one-shot revenues
from 13.2% of the budget in 2010 to
1.6% in 2017. We constrained discretionary spending over the last eight
years so that in real dollars, New Jersey state government spends $2 billion less today in discretionary
spending than it did nine years ago.
We reduced the number of state employees through attrition by more
than 10,000 over my two terms.
Second, we introduced conservative tax policies to the highest-taxed
state in America, according to the Tax
Foundation. We passed 2% annual
caps on property taxes (with three
exceptions) and arbitration awards
for police and fire salaries, saving
homeowners $2.9 billion in property
taxes over seven years, cutting
30,000 employees at the local level
and paring back salary increases by
more $500 million. Property taxes
that were rising 7% per year when I
took office, have risen only 2.1% per
year since 2011. We cut business
We cut taxes, held down
spending, reformed
pensions—and vetoed
Democrats’ bad ideas.
taxes by $3 billion. We eliminated that
corporate tax surcharge, cut the top
income tax rate from 10.75% to 8.97%
and paid the debt in the unemployment insurance fund. We cut the sales
tax from 7% to 6.675%, increased the
earned income tax credit from 25% to
35%, gave retirees a $100,000 state tax
exemption on retirement income, and
completely eliminated the worst estate tax in America. We managed to
pass all this with a Democratic legislature, while at the same time vetoing 11
proposed tax increases.
Third, we aggressively reformed
an underfunded pension system. In
2011, we passed pension and benefit
reform that eliminated cost-of-living
adjustments and saved state and local
governments $120 billion over 30
years. We changed an irresponsible
8.25% assumed rate of return for the
pension system to 7.65%. We also increased pension funding, contributing
$8.8 billion over eight years—more
than double the amount contributed
by the last five governors combined.
We irrevocably contributed the state
lottery as an asset to the pension system, reducing the unfunded liability
by $13.5 billion and guaranteeing $37
billion in contributions over 30 years.
We have not fixed the whole pension
problem, but a combination of reforms, increased contributions and
realistic rates of return has stopped
the bleeding.
These steps, taken together, have
produced real economic results.
New Jersey’s unemployment rate is
down by more than half since 2012,
from 9.8% to 4.7%. We restored the
state’s private sector to health, with
318,000 new jobs created since 2010.
More Garden State residents are currently employed than at any other
time in New Jersey’s history.
My administration has made progress in other areas as well. We doubled the number of charter-school
seats and passed tenure reforms allowing principals to fire ineffective
teachers. Our criminal-justice reforms have reduced the prison population in New Jersey and enabled the
closing of two state prisons. Finally,
we stopped all kinds of bad ideas
coming out of the Democratic legislature, vetoing a record 584 bills so far,
without a single override.
Of course my administration
couldn’t fix all the problems we inherited, but there is no question that
New Jersey is a lower-taxed, more
fiscally responsible and more conservative state than it was eight years
ago. Anyone who says otherwise encourages the type of absolutism that
is currently causing the tumult in
Washington and doesn’t know the
facts.
Mr. Christie, a Republican, is governor of New Jersey.
Zimbabwe’s Coup Could Provide an Opening for Democracy
By Ozan Varol
A
military intervention against
President Robert Mugabe is
under way in Zimbabwe. Although the generals have denied
that their actions amount to a coup
d’état, events on the ground suggest
otherwise: The military seized control of the state media, rolled tanks
into the streets, and took the 93year-old Mr. Mugabe into custody.
He is among the world’s longest-ruling dictators, having clung to power
since Zimbabwe gained independence in 1980.
It’s often assumed that a coup
d’état—French for “stroke of the
state”—is inherently bad for democracy. But could the coup in Zimbabwe present a democratic opening?
The answer is a qualified yes.
A military coup itself is an undemocratic event. The military assumes power not through elections
but by force or the threat of force.
But sometimes a military coup can
topple a dictatorship and make possible a transition that ends with the
free and fair election of civilian
leaders.
There are plenty of examples of
democratic coups in various times
and places. It was the military in
ancient Greece that stood up to the
Council of the Four Hundred’s tyrannical coup in 411 B.C., which
threatened to end democratic rule
in the state that invented the term
“democracy.” It was the military in
England, with the help of William of
Orange, that overthrew King James
II in 1688 and transformed Britain
from an absolute monarchy to a
constitutional one. Other countries
as diverse as Portugal, Mali, Colombia, Burkina Faso, Guinea-Bissau,
Guatemala and Peru have all undergone democratization after their
militaries turned their arms against
authoritarian rulers.
Although coups can produce democracies, the agendas of even
democratic coup plotters tend to
be self-serving. Militaries topple
dictatorships when the regime
turns unfavorable to their interests. If the regime doesn’t treat the
military well, soldiers may set
aside their previous loyalty and
identify more with the opposition’s
grievances.
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In Zimbabwe, the military intervention came after Mr. Mugabe dismissed his vice president, Emmerson
Mnangagwa. The dismissal was controversial because Mr. Mnangagwa
was a leading contender to succeed
Mr. Mugabe after he dies. His ouster
paved the way for Mr. Mugabe’s
wife, Grace (known as “Gucci Grace”
for her lavish foreign shopping
sprees), to take power.
Mr. Mnangagwa’s dismissal ruffled the feathers of the military’s top
brass, in large part because he had
fought in Zimbabwe’s 1970s war of
independence. Immediately after Mr.
Mnangagwa was dismissed and
forced into exile, the commander of
the Zimbabwe Defense Forces, Gen.
Constantino Chiwenga, issued a
statement condemning the purge and
reminding “those behind the current
treacherous shenanigans that when
it comes to matters of protecting our
revolution, the military will not hesitate to step in.”
A coup is like chemotherapy.
When properly administered, it may
be highly effective, but it also has
the potential to produce unpleasant
and dangerous side effects. Coups
can generate social and political turmoil, particularly when the deposed
leader enjoys popular support. Zimbabwe is deeply divided over the issue of presidential succession, and
Mrs. Mugabe’s supporters may resist
any attempts to prevent her from
assuming the presidential seat. The
coup may also beget future coups by
shattering the illusion of civilian
control of the military.
Democracy is not the inevitable
outcome of a coup that begins with
the promise of democratic rule. Military leaders who tear down an authoritarian government with the
Militaries in Romania,
Serbia and Tunisia, among
others, helped topple
authoritarian regimes.
promise of democracy may be insincere to begin with, or they may become drunk with power and grow
reluctant to relinquish it. It’s also
possible for the military to install
Mr. Mnangagwa, who returned from
exile after the coup, as the new
president without elections. The
vice president’s democratic credentials are far from stellar. He served
as brutal spymaster during the
country’s postindependence civil
conflict in the 1980s, when thousand of innocent civilians were
slaughtered.
Instead of retaining power for
itself or installing Mr. Mnangagwa
in the presidential seat, the military should turn over power to an
interim civilian government to prepare the country for democratic
elections. That would demonstrate
the military’s goodwill and assuage
concerns that Mr. Mugabe’s dictatorship will be replaced with another one.
In so doing, the military would
follow in the footsteps of armies
that played a pivotal role in democratic revolutions in Romania in
1989, Serbia in 2000, Tunisia in
2011 and elsewhere. These militaries enabled democratic transitions
by withdrawing their support from
the incumbent dictatorships but
declining to assume power for
themselves.
The international community also
has an important role to play. Zimbabwe’s key allies and partners can
announce their support for a democratic transition and place pressure
on the military to follow a democratic trajectory.
Wednesday’s military intervention may have generated the first
democratic opening that Zimbabwe
has experienced since its independence in 1980. The army’s next
move will help determine whether
this opening produces a democracy
or a new dictatorship.
Mr. Varol is a professor at Lewis
& Clark Law School and author of
“The Democratic Coup d’État,” just
out from Oxford University Press.
Notable & Quotable: Clinton and Moore
From “A Senate Seat Is Not
Worth Roy Moore” by Timothy P.
Carney, Washington Examiner,
Nov. 14:
Imagine a well-intentioned honest
liberal Democrat granted the power
of clairvoyance in 1998. If he could
look ahead to 2017, and see the consequences, what do you think he
would tell his party about former
President Bill Clinton? What would
he say as the party leaders lined up
feminist Gloria Steinem to write an
op-ed defending Clinton, despite the
affair with an intern half his age and
the flood of charges of sexual assault or harassment? Maybe he
would say, “Guys, let’s not establish
the principle that character doesn’t
matter in public office. Let’s not
mock those objecting to sexual impropriety as mere prudes. Let’s not
rush to ‘move on’ from President
Clinton’s crimes. If we do, we will
suffer later.”
It’s not a stretch to suggest that
the Left’s fierce, ruthless, and suc-
cessful defense of Bill Clinton—and
the virulent attacks on his critics
and victims—paved the way for
Trump’s presidency.
Just so, there will be long-term
consequences to any conservative
embrace of that same nihilistic
worldview that gripped the 1990s
Democrats. And for conservatives,
the consequences will be even
worse, because conservatism as a
philosophy requires boundaries,
norms, and traditions that such a
worldview cannot sustain.
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 | Thursday, November 16, 2017
Mobile security
made for the way
people really work.
Humans will be humans. Naturally they’ll send last minute
emails from unsecure airport wifi. But don’t worry. We’ve built
mobile security from the chip up, to make things easier for you.
Because why attempt to change your employees’ behavior, when
you can simply change their mobile security?
Defense-grade security for an open world.
VPN configuration required. Samsung Knox solutions utilizing VPN configuration sold separately.
samsung.com/samsungknox
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
TECHNOLOGY: JOANNA STERN ON CHARGING IPHONES FAST OR WIRELESSLY B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2564.62 g 0.55%
S&P FIN À 0.19%
S&P IT g 0.85%
Thursday, November 16, 2017 | B1
THE WALL STREET JOURNAL.
* * * * **
DJ TRANS g 0.51%
WSJ $ IDX g 0.08%
LIBOR 3M 1.422
NIKKEI (Midday) 22210.45 À 0.83%
See more at WSJMarkets.com
Consumer Czar Ends Stormy Term Meredith
Cordray’s exit from
agency after six years
clears the way for
restructuring by Trump
BY YUKA HAYASHI
Richard Cordray, the first
head of a consumer regulator
created after the financial crisis, plans to leave before the
end of November, ending a tumultuous six-year tenure and
paving the way for President
Donald Trump to restructure
the agency.
The Consumer Financial
Protection Bureau has been a
subject of partisan bickering
since it was established in
2011. Unlike many other agen-
HEARD ON
THE STREET
By Richard Barley
Rumbling
Markets
Flash Signs
Of Caution
Has winter
arrived early
this year?
Some markets
certainly feel
chillier in November than in October. Answers are elusive, but markets may have set
themselves up for a fall.
The wobble is notable in a
year that has seen concerns
about market calm and complacency build. In Europe,
the Euro Stoxx index has
fallen more than 4% since
Nov. 1; in Japan, the Nikkei
Stock Average is down that
much in a week. Corporatebond yields have risen, with
the spread for U.S. high-yield
debt over Treasurys widening 0.5 percentage point
from October’s lows. Emerging-market debt and currencies have suffered, too.
Some markets are, as yet,
unruffled. The S&P 500 is
just below its record, even as
concerns about U.S. tax policy have re-emerged. In Europe, the spread between
Italian and German government-bond yields is close to
its tightest point for more
than a year.
The Swiss franc, a classic
haven in times of trouble, is
little changed. Moreover, the
big macroeconomic picture
remains one of relative solidity and broadly synchronized
global growth.
It is worth putting some
of the moves into context.
The backup in U.S. high-yield
debt appears to be driven by
problems particular to the
communications sector.
Local problems account
for some of the moves in
emerging markets, such as
the renewed weakness of the
Turkish lira and South African rand.
Perhaps the problem lies
more with investors than assets. It has been a good year
for many markets, better
than might have been expected at the start of 2017
and thus a reason to cash in.
More broadly, investors may
have placed too much faith
in extremely buoyant conditions.
As investors’ expectations
become more entrenched
and asset prices rise, there is
a risk of disappointment.
The path markets are walking gets narrower, because
everything has to go just
right to support higher valuations and tighter credit
spreads. Small deviations become more important, but
also garner more attention
than they otherwise might
because markets are expensive.
The important question is
whether enough small deviations come together to trigger a more noteworthy disruption.
cies where Trump appointees
have begun rolling back regulations, the CFPB has kept
pursuing its longstanding
agenda under Mr. Cordray, an
Obama appointee.
Mr. Cordray announced his
plan to resign in an email sent
to all CFPB staff Wednesday
morning. He didn’t give a reason
for his departure, which comes
before his term is set to end in
July 2018. A CFPB spokesman
declined to comment.
The announcement came after speculation from political
observers that Mr. Cordray, a
Democrat, would step down to
run for governor of Ohio, his
home state, where he served
as attorney general. He didn’t
mention future plans.
Several Ohio Democrats
said Wednesday they expect
Mr. Cordray to launch a gubernatorial campaign very soon
to replace Republican Gov.
John Kasich, who faces a term
limit.
In the email, Mr. Cordray
said the agency has made “a
real and lasting difference” in
improving people’s lives since
its birth. “And I trust that new
leadership will see that value
also and work to preserve it—
perhaps in different ways than
before, but desiring, as I have
done, to serve in ways that
benefit and strengthen our
economy and our country.”
A White House spokesman
said Wednesday that the
Trump administration would
announce an acting CFPB director and a nominee for a
permanent chief “at the appropriate time.”
The process for appointing
a successor to Mr. Cordray will
likely be contentious, with
Democrats expected to put up
The CFPB has had
bitter disagreements
with financial firms,
Republican lawmakers.
a fight to oppose anyone who
would significantly alter the
agency. “The new director of
the CFPB must be someone
with a track record of protecting consumers and holding fi-
nancial firms responsible
when they cheat people,” said
Sen. Elizabeth Warren (D.,
Mass), who helped to create
the CFPB. “This is no place for
another Trump-appointed industry hack.”
Republican opponents of
the CFPB were happy to see
Mr. Cordray go. “The CFPB has
hurt more consumers than it
has helped,” said Sen. Tom
Cotton (R., Ark.). “Now we
have an opportunity to appoint a CFPB director who will
respect the rule of law and
rein in this rogue agency’s
worst abuses.”
Over the past months, a
number of financial-industry experts and lawmakers have been
mentioned as potential candiPlease see CORDRAY page B2
The Mountain That Indexing Built
$4.8 trillion
Vanguard Group on Wednesday held its first firmwide shareholder
meeting in nearly a decade, a period in which the money-management
firm’s assets have soared thanks to the growing popularity of passive
investing strategies such as index funds, of which Vanguard has
been a pioneer.
$4
3
2
1
Vanguard’s assets under management, in trillions
0
1990
’95
2000
’05
’10
’15
’17
Surging inflows into passive funds reflect in part
the lower fees charged by many index funds.
A major beneficiary of the shift has been exchange-traded funds,
whose growth has vastly outstripped those of traditional mutual
funds lately.
U.S. mutual funds, change in net assets from a year earlier
Actively managed
Index funds
U.S. exchange-traded funds,
net assets, in trillions
40%
Recruits
Kochs in
Takeover
Of Time
BY JEFFREY A. TRACHTENBERG
Meredith Corp. has lined up
financing commitments from
several banks as well as the
billionaire Koch brothers in
pursuit of a takeover of Time
Inc., people familiar with the
situation said, a deal that
would unite two big magazine
publishers trying to find their
way in the digital media era.
Meredith recently approached Time Inc. about a
deal and indicated it had secured financing, including
$600 million from a privateequity subsidiary of Koch Industries Inc., one of the people said.
Two Meredith executives
denied that any negotiations
were under way.
Meredith, publisher of titles such as Better Homes
and Gardens and Family Circle, and Time Inc., owner of
People, Sports Illustrated and
the flagship Time, have had
talks toward a potential
merger on multiple occasions,
but it hasn’t come to fruition
thus far.
$1.26B
$3.1 trillion
The market capitalization
of Time Inc.
$2
20
0
1
–20
–40
0
2001
’05
’10
’15
’17
2000
’05
’10
Sources: the company (Vanguard assets); Investment Company Institute (mutual funds, ETFs)
’15
’17
THE WALL STREET JOURNAL.
No Sleeping Giant, Vanguard Grows
BY SARAH KROUSE
SCOTTSDALE, Ariz.—Vanguard Group quadrupled in
size over the past eight years.
It is about to get even bigger.
The money-management giant is on pace to collect a record one-year total of about
$350 billion in investor cash by
the end of 2017, Chief Executive F. William McNabb III said
in an interview Wednesday following a shareholder meeting
in Scottsdale, Ariz. That estimate hasn’t previously been
disclosed.
“It’s an extraordinary number,” Mr. McNabb said of
INSIDE
money flowing into the firm.
The expected haul, which
would exceed Vanguard’s prior
record by $27 billion, reinforces an industrywide shift
away from money managers
who specialize in handpicking
winners.
Vanguard has become one
of the main beneficiaries
of the growing preference by
investors for lower-cost passive funds, which track the
performance of indexes. It pioneered the index fund for retail investors 40 years ago.
Vanguard’s outsize heft was
a topic of discussion at its
Scottsdale meeting Wednes-
SPORTS, B3
WATER
BALLOON FIGHT
HITS COURT
PATENT LAW, B8
der management were $1.1 trillion, and money going into its
passively managed funds accounted for about 78% of total
net inflows during 2009.
Now its assets are $4.8 trillion and passively managed
funds accounted for 91% of inflows through the first 10
months of this year. Net flows
into Vanguard funds so far this
year accounted for about 51%
of total net flows into all U.S.
mutual funds and exchangetraded funds, according to
Morningstar Inc.
“We’re a very different
company than we were 10
Please see FUNDS page B2
Asia’s Big Tech Firms Confound Analysts
Asia’s biggest technology
companies are growing so
quickly that stock analysts
can’t keep up.
Tencent Holdings Ltd., the
Chinese gaming and social-me-
NFL’S FIGHT
WITH OWNER
GROWS HOTTER
day, the first firmwide gathering for shareholders since
2009. One Vanguard Group
shareholder marveled at the
wave of new investor cash the
money manager has attracted
in recent years and asked executives if they are taking any
precautions to make sure that
success doesn’t go to their
heads.
“It is probably the thing we
worry most about at Vanguard,” Mr. McNabb told the
shareholder. “That success can
breed complacency.”
The last time shareholders
came together for a firmwide
meeting Vanguard’s assets un-
Meredith in 2013 came close
to acquiring most of Time
Inc.’s magazines but the talks
fell apart. Early this year, Meredith was again in the hunt to
purchase Time Inc. until Time
Inc. ended the process.
One issue Meredith has confronted is putting together the
financing necessary to complete a takeover of Time Inc.,
which has a market capitalization of $1.26 billion.
The injection of equity from
the Koch brothers, then, is significant. The conglomerate
Koch Industries is one of the
largest privately owned companies in the U.S. and is controlled by the billionaire industrialist brothers Charles and
David Koch, who are widely
known for supporting a conservative and libertarian political agenda.
The New York Times first
reported Meredith’s pursuit of
Time Inc. and arrangement
with the Koch brothers.
Koch Industries couldn’t immediately be reached for comment.
By Saumya
Vaishampayan,
Steven Russolillo
and Alyssa Abkowitz
dia giant, on Wednesday reported another blowout quarter, highlighted by a 61% surge
in quarterly revenue from a
year ago. It was the company’s
fastest pace of revenue growth
since 2010.
Tencent has now exceeded
analysts’ revenue estimates for
nine straight quarters, according to FactSet, and its profits
also have topped recent forecasts. No matter how optimistic analysts become, the company’s results keep exceeding
their targets. The same goes
for rival tech giant Alibaba
Group Holding Ltd., which has
beat analysts’ revenue expectations for nearly as many quarters.
“My peers and I, we’ve all
been consistently wrong on
forecasting these names,” said
John Choi, head of Hong Kong
and China internet research at
Daiwa Capital Markets. As the
companies keep beating estimates, “we’re all going back
and revising our assumptions,”
he added.
One reason analysts have
been off the mark is that the
companies don’t disclose much
financial guidance. Tencent, for
instance, doesn’t offer earnings
and revenue outlooks. Another
factor that has caught some off
guard is the momentum in
China’s consumer economy,
which is driving the growth.
Tencent’s shares have more
than doubled this year, pushing
the company’s market capitalization to $466 billion, slightly
larger than Warren Buffett’s
Berkshire Hathaway Inc., even
though the latter’s sales are
much higher.
The surge largely reflects
rising growth expectations for
Tencent, which at the end of
September was the No. 1 videostreaming service in paid sub-
Game On
Tencent's quarterly revenue,
change from previous year
70%
60
3Q 2017
s61%
50
40
30
20
10
0
2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17
Source: S&P Global Market Intelligence
THE WALL STREET JOURNAL.
scriptions, according to data
firm App Annie. Tencent has
more than 43 million paying
subscribers, up from 20 million
in November 2016.
Tencent isn’t the only company confounding analysts.
Across Asia, profit expectations for the continent’s larg-
est companies are climbing,
helping to explain why many
Asian stock markets are among
the best performers globally
this year.
Analysts expect 2017 pershare earnings for companies
in a widely followed benchmark called the MSCI AC Asia
ex-Japan Index to rise 22%
from a year ago, the most bullish forecast they have collectively had in seven years, according to Bank of America
Merrill Lynch. At the beginning
of this year, analysts were
forecasting
12.8%
profit
growth.
The index, which many
money managers track, is
made up of 633 of the region’s
large and midcap companies
across nearly a dozen sectors.
Its biggest components include
Tencent and Alibaba, as well as
Samsung Electronics Co. and
insurer AIA Group Ltd. Led by
stocks of those companies, the
index has risen over 30% so far
Please see GROWTH page B4
Heard on the Street: Tencent
hits another high score .... B14
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Thursday, November 16, 2017
THE WALL STREET JOURNAL.
* *****
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
G
General Atlantic..........B2
General Dynamics.......A6
GlaxoSmithKline.........A8
B
Baidu ........................... B4
Beam Suntory.............B6
Benchmark..................B2
Berkshire Hathaway
............................... B1,B2
Black Cube.................B12
BNP Paribas................B4
Boeing ......................... B2
Bonanza Creek Energy
.....................................B3
C
Carlyle Group............B13
Charter Communications
...................................B14
Cognizant Technology
Solutions...................B5
D
Diageo ......................... B6
Dragoneer Investment
Group.........................B2
E
Emirates Airline ......... B2
Evercore.......................B3
F
First Round Capital .... B2
Flydubai.......................B2
Fortress Investment
Group.........................B3
H
Halliburton................B12
HSH Nordbank..........A10
I
Indigo Partners...........B2
IVS Associates ........... A6
K
Kirkland & Ellis...........B3
Koch Industries...........B1
L
Lisgráfica Impressão e
Artes Gráficas........A10
Lockheed Martin.........A6
M
Marathon Oil.............B12
Merck .......................... A8
Meredith......................B1
Mitsubishi UFJ Financial
Group.......................B12
Mondelez International
.....................................A6
Morgan Stanley..........B3
N
Navient........................B2
Norddeutsche
Vermoegen HoldingA10
O
Ocwen Financial..........B2
Orange.......................B14
P-R
Parsley Energy..........B12
PdVSA ....................... B13
Procter & Gamble.......A1
Reggeborgh...............B13
Rosneft Oil................B13
S
Samsung Electronics..B1
SandRidge Energy ...... B3
Schlumberger............B12
SoftBank Group..........B2
Square.......................B12
Stefanel.......................A1
Stitch Fix.....................B8
T
Taiwan Semiconductor
Manufacturing..........B4
Target ........... B3,B13,B14
TCF National Bank......B2
Tencent Holdings.B1,B14
Tesla.......................B4,B5
Time.......................B1,B6
Time Warner...............B3
Trian Fund Management
.....................................A1
21st Century Fox........B6
U
Uber Technologies ...... B2
UnitedMasters............B6
United Technologies...A6
V
Vanguard Group..........B1
Varo Energy .............. B13
Vitol Group................B13
Vivendi ........................ B3
Volaris Aviation Holding
.....................................B2
W
Wal-Mart Stores.........B3
Weinstein....................B3
West Face Capital .... B12
WeWork ...................... B4
Wizz Air Holdings ...... B2
INDEX TO PEOPLE
B
Baker, Akbar Al .......... B2
Baumgartner, Peter....B2
Betts, Karen................B6
Bogle, Jack..................B2
Boodry, Kirk ................B4
Buckley, Jeremiah.......B2
C
Choi, John ................... B1
Clark, Tim....................B2
Cooper, Kyle..............B14
Cordray, Richard..........B1
Cotton, Tom ................ B1
F
Franke, Bill..................B2
G
Garden, Ed .................. A6
Goodell, Roger ............ B3
H
Hatheway, Geoff ........ A2
Hovenkamp, Herbert..B3
Hug, Peter.................B13
J
Jones, Jerry ................ B3
K
Kalanick, Travis...........B2
Kasich, John................B1
Khosrowshahi, Dara ... B2
King, Kelly...................B2
Koch, Charles..............B1
Koch, David.................B1
Kwong, Arthur............B4
L
Loewen, Michael.......B14
M-N
McNabb, F. William III
.....................................B1
Middleman, Stanley ... B2
Musk, Elon..................B4
Neumann, Adam.........B4
CORDRAY
Continued from the prior page
dates to succeed Mr. Cordray.
Among them are Jeb Hensarling
(R., Texas), chairman of the
House Financial Services Committee; Todd Zywicki, a law professor at George Mason University; and Jeremiah Buckley,
founding partner of Buckley
Sandler LLP, a law firm. Financial-industry experts said the
administration might appoint a
senior Treasury Department official as an acting chief. Those
mentioned as possible candidates for that role are Craig
Phillips, a counselor assisting
Treasury Secretary Steven
Mnuchin on overhauling regulations, and Jared Sawyer, a deputy assistant Treasury secretary.
Under Mr. Cordray, the
CFPB brought significant
changes to consumer finance,
a corner of the financial industry that had previously escaped regulatory scrutiny. The
agency tightened underwriting
standards for mortgages, required more disclosure on
credit-card rates and fees, and
introduced federal government
oversight to payday lending.
The CFPB’s aggressive enforcement actions sometimes
went well beyond precedents
set by other agencies in the
past. Those actions have
drawn praise from consumer
advocates and Democrats, but
have put Mr. Cordray and his
agency in bitter disagreements
with financial companies and
Republican lawmakers.
Lenders said they hoped
new CFPB leadership would
regulate by issuing proposed
rules and asking for industry
Noll, Roger..................B3
P
Peltz, Nelson .............. A1
Phillips, Bob..............B13
Potter, Alexander ....... B4
R
Ramsey, Mike ............. B4
Robison, Shona...........B6
S
Shanker, Ravi..............B4
Snyder, Dan.................B3
Stoute, Steve..............B6
T
Taylor, David...............A1
W
Weinstein, Harvey......B3
Z
Zahir, Tariq................B14
Zerpa, Simon.............B13
feedback, as other regulators
tend to do, rather than what
they said was a practice of unexpectedly issuing bulletins or
enforcement actions.
“We’ve been living in an era
of regulation by enforcement,”
said Stanley Middleman, CEO
of nonbank lender Freedom
Mortgage Corp.
Banks also said they hoped
the CFPB would shift its focus
to other areas of the financial
system,
namely
so-called
shadow-banking lenders. “I believe there’s an opportunity
ahead for the new leadership
team to focus on the unregulated areas outside of the financial-services industry that could
be harmful to consumers,”
BB&T Corp. CEO Kelly King said.
Under new leadership, the
CFPB could settle or drop litigation against student-loan
servicer Navient Corp. and
mortgage servicer Ocwen Financial Corp., according to
Compass Point Research &
Trading LLC, or TCF National
Bank, which the regulator
sued early this year over its
overdraft services.
Mr. Trump will now be able
to continue installing new
chiefs at financial regulatory
agencies. The president recently tapped Jerome Powell as
Federal Reserve chairman, taking over from Obama appointee
Janet Yellen. Randal Quarles,
the Fed’s new vice chairman
for supervision, is seen as
much friendlier to the banking
industry than his de facto predecessor in the role, former
Fed governor Daniel Tarullo.
—AnnaMaria Andriotis,
Christina Rexrode
and Eli Stokols
contributed to this article.
SoftBank’s Uber Play Clouds Value
BY GREG BENSINGER
SoftBank Group Corp. is
shooting for a multibillion-dollar stake in Uber Technologies by paying one price to
the company and a lower one
to its shareholders—an unusual approach at such a
grand scale that raises the
question of what the world’s
most valuable startup is actually worth.
On Sunday, Uber agreed to
allow the Japanese investor,
along with partners, to proceed with a complex two-part
transaction in which the investment group will try to
amass between 14% and 20%
of Uber, people familiar with
the matter said. If successful,
SoftBank could become one of
Uber’s largest shareholders—
investing up to $10 billion into
the ride-hailing startup.
In coming weeks, SoftBank,
along with Dragoneer Investment Group and private-equity firm General Atlantic, are
planning to buy at least $1 billion worth of newly issued
shares from Uber based on the
startup’s last valuation of
around $68 billion.
At the same time, the SoftBank-led group expects to buy
the rest of its stake from existing shareholders at a steep
discount, and is haggling with
board members and Uber investors over the price it will
offer, people familiar with the
matter said.
If not enough shareholders
are willing to sell shares at the
tender price for the group to
build a stake of at least 14% in
Uber, the deal could possibly
fall apart, the people said—
which would derail a series of
corporate-governance reforms
that are tied to the tender offer and deal a setback to new
CEO Dara Khosrowshahi.
STEVE HELBER/ASSOCIATED PRESS
Saudi Arabia Public
Investment Fund
Tiger Global
Uber valuation and notable investors
s
$68 billion
Offer directly to Uber
$60 billion
Microsoft
Baidu, Qatar
Investment Authority,
Glade Brook Capital
50
40
Fidelity Investments,
BlackRock,
Kleiner Perkins
30
20
First Round
Capital,
10 Lowercase
Capital
0
2010
Benchmark Capital
Menlo Ventures,
Goldman Sachs
’11
’12
TPG Growth,
GV (formerly Google
Ventures)
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
Sources: Dow Jones VentureSource; staff reports
Talks between the SoftBank
consortium and Uber investors
have centered on a valuation
within range of around $50
billion, roughly 25% lower
than the value set in Uber’s
last funding round in June
2016, these people said.
Typically, startups and their
investors mark the company’s
valuation at the last price paid
in a funding round involving a
direct investment. While Uber
has been embroiled in scandals for much of the year, its
valuation has remained at $68
billion because it hasn’t raised
new capital.
The SoftBank consortium is
preparing to invest between $1
billion and $1.25 billion directly in Uber at the $68 billion price, so in theory the valuation would remain the same.
But with as much as 10
times more shares potentially
being sold at a discount, some
people close to the deal say it
would be fair to value Uber
lower than $68 billion by taking the weighted average of
shares.
Not all agree, noting that
s
About $50 billion
Offer to employees/
investors
private valuations can be subjective and set by the companies in coordination with investors. The valuation, though,
could take on added importance once Uber prices its initial public offering of shares
expected in 2019.
Shareholders, which include
current and former employees
holding stock options issued
before late 2014, will have to
decide whether it is worth
cashing in now or wait for the
IPO when other factors, like
stock-market dynamics and
the broader economy can affect its value. Uber has generally restricted secondary sales,
making this a unique opportunity to profit, though current
employees can only sell as
much as half their stakes.
Uber’s valuation has soared
over the years—the company
was valued at about $5 million in 2010—so the discount
may matter less if the shares
were obtained early. Early investors would hit the jackpot.
First Round Capital, for example, paid about a half-million dollars for more than 50
million shares in Uber’s 2010
first fundraising round, adjusting for stock splits, according to a term sheet reviewed by The Wall Street
Journal. At a $50 billion valuation, those shares would be
worth over $2 billion. A representative for First Round
declined to comment.
In order to reach a target
stake of 14% to 20%, the SoftBank group will likely need the
cooperation of some of Uber’s
biggest shareholders. Benchmark Capital, which owns
about 13% of Uber worth over
$8 billion, has wavered on
whether it will sell. It paid less
than $30 million for its stake.
Benchmark’s Twitter account in August wrote that
Uber could be “comfortably”
worth more than $100 billion
in the next couple of years. A
Benchmark spokeswoman declined to comment.
Uber co-founder and former
CEO Travis Kalanick, with a
10% stake, has indicated he
would retain all of his shares.
A representative for Mr. Kalanick declined to comment.
Budget Carriers Gird for Growth
BY DOUG CAMERON
AND ROBERT WALL
Airbus SE and Boeing Co.
landed aircraft deals with a
headline value of more than
$75 billion, demonstrating unrelenting appetite for their
most popular planes from discount carriers looking to lock
in deals to support growth for
years to come.
Airbus on Wednesday disclosed one of the biggest aircraft commitments on record
with a 430-jet agreement with
airlines linked to Indigo Partners LLC, a U.S. private-equity
group with stakes in some of
the fastest-growing low-cost
carriers on three continents.
The proposed deal announced at the Dubai Airshow
would more than triple the size
of Denver-based Frontier Airlines and fuel the rapid expansion of carriers in Hungary,
Mexico and Chile. It is a rare
example of carriers clubbing
together to secure better
prices.
The jets carry a sticker price
of almost $49.5 billion before
the customary discounts that
can reduce the true value by
50% or more, and helps Airbus
narrow the gap with Boeing in
new orders this year and adds
to backlogs at the European
manufacturer representing five
years or more of production.
Boeing followed shortly after with a deal to sell budget
carrier Flydubai as many as
225 of its 737 Max planes, including the newest and largest
version, the Max 10. The deal
encompasses 175 firm commitments and purchase rights for
more, Boeing said, with a combined list price of $27 billion.
FUNDS
Mr. Cordray helped bring changes to mortgage underwriting
standards, credit-card fee disclosure and payday lending oversight.
Moving Target
A proposed SoftBank offer hinges on investors selling
their shares at a discount from Uber’s last valuation.
Continued from the prior page
years ago,” Mr. McNabb said in
the interview.
Some customers have complained of longer call wait
times while Vanguard’s assets
ballooned. Mr. McNabb said
Wednesday the company has
added 1,200 customer-service
staff members to a 5,000-person team in the past year. The
firm’s processing backlog is
down, and wait times are
shorter, Mr. McNabb said. “We
just didn’t see the continued
cash flow” that Vanguard
eventually received, he said.
Shareholders in most funds
approved six management proposals Wednesday, the company said, including the election
of
trustees
and
KEVIN P. CASEY/BLOOMBERG NEWS
A
AIA Group ................... B1
Airbus..........................B2
Alibaba Group A4,B1,B14
Alphabet......................B6
Altice.........................B14
Altice USA ................ B14
Amazon.com ............... B3
Andreessen Horowitz.B6
AT&T............................B3
Boeing on Wednesday announced a deal with discount airline Flydubai for as many as 225 planes.
Airbus and Boeing are pushing production of single-aisle
planes to satisfy demand. But
even with higher production,
new customers will have to
wait. The four Indigo-linked
carriers’ deliveries stretch
from 2021 to 2026, with Flydubai’s running until 2029.
Phoenix-based Indigo, which
is led by industry veteran Bill
Franke, is best known for helping launch Spirit Airlines before selling out to acquire
Frontier, as well as Hungary’s
Wizz Air Holdings PLC and
Mexico’s Volaris Aviation
Holding Co. It also backed
JetSmart, a Chilean carrier
that launched this year.
The preliminary agreement
with Airbus covers 430
planes—273 A320neos and 157
of the larger A321neo model—
doubling potential orders
placed for the four Indigolinked airlines.
Frontier plans to take 134
jets, with Wizz receiving 146
planes pending shareholder
backing. Volaris would receive
80, with 70 for JetSmart.
It isn’t unprecedented for
airlines to order aircraft
jointly. For example, Emirates
Airline and Qatar Airways cooperated as launch customers
for the Boeing 777X at the
2013 Dubai Airshow.
Budget airlines tend to place
massive plane orders at once
to get bigger discounts from
plane makers. The big commitments allow the manufacturers
to lower costs by building
planes more efficiently and extracting discounts from their
own suppliers.
For Airbus, the deal is a bit
of needed good news. Emirates
Airline, the world’s largest by
international traffic, on Sunday
snubbed the plane maker on a
roughly $15 billion A380 superjumbo order, refusing to finalize the deal unless Airbus
promised to build the plane for
at least another decade.
The European manufacturer
has trailed Boeing in securing
orders this year, garnering more
than 300 before Wednesday’s
announcement, compared with
more than 600 for its U.S. rival.
The Dubai Airshow can be a
hotbed for plane deals. However, analysts are cautious on
whether some of the big customers will take all of their
planned jets on schedule, particularly if an economic downturn slows traffic growth.
permission to hire or fire internal managers for the majority
of the company’s 195 funds. The
proxy vote was the largest ever
by a mutual-fund firm, Mr. McNabb told shareholders.
Vanguard reserved a large
beige-walled conference room
at a Doubletree Resort
that was divided by a collapsible
wall.
The
first
room had about 300 chairs
and a second had additional
rows of seating, should more
clients than expected attend. It
turned out the extra room
wasn’t needed, as 205 shareholders showed up.
Customers made their way
gradually to seats and filed
one by one to microphones on
either side of the conference
room to ask questions. Executives answered from wooden
chairs on a stage with a curtain behind them lighted with
red light.
Retired insurance-industry
executive Robert Hestekind, 78
years old, arrived from Northeast Mesa, Ariz., to learn more
about the proposals for which
the money manager sought
shareholder approval and get a
glimpse of Vanguard’s founder.
“I was hoping maybe we’d
get to see Jack Bogle,” he said.
“He’s as big as Warren Buffett
in my estimation.”
But Mr. Bogle, 88, who
founded Vanguard in 1975,
didn’t attend Vanguard’s meeting. Mr. Bogle received an ovation at this year’s Berkshire
Hathaway annual meeting,
where Berkshire’s chief, Mr.
Buffett, said the Vanguard
founder “has probably done
more for the American investor
than any man in the country.”
One Vanguard Group shareholder asked executives on
stage at the meeting if the
company’s mutual structure
might change. Mr. McNabb’s reply: “The short answer is no.”
Mortimer J. “Tim” Buckley,
who is set to succeed Mr. McNabb in January, chimed in,
too. “I’ll second that,” Mr.
Buckley said.
Mr. McNabb said the structure, in which the firm is
owned by its fund shareholders, is “the single biggest
source of our distinct advantage.” He credited Mr. Bogle
for setting up the company
that way.
Tom Kenney, a retiree who
lives near Phoenix and used to
work in advertising, came to
the meeting to hear Vanguard’s
view of financial markets. “It’s
been going up and up and up,”
Mr. Kenney said of markets,
wondering when it might start
to go “down, down, down.”
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.
Thursday, November 16, 2017 | B3
* * * *
BUSINESS NEWS
NFL Fight With Owner Heats Up
BY KHADEEJA SAFDAR
BY ANDREW BEATON
Target Corp. posted higher
quarterly sales, but profit fell
and the retailer gave a disappointing earnings outlook for
the holiday period, as the bigbox chain spends heavily to revamp stores, lower prices and
raise wages.
The company said sales at
stores open at least a year increased 0.9% in the quarter
ended Oct. 28, compared with
a 0.2% decline in the same period last year. It forecast earnings for the holiday quarter of
$1.05 to $1.25 a share, lower
than what Wall Street was expecting.
Shares of the retailer fell
10% Wednesday to close at
$54.16. The stock is down 25%
this year as investors worry
about competition from WalMart Stores Inc. and Amazon.com Inc., which are pushing down prices.
“We’ve entered the season
in a very different position
versus last year,” said Chief
Executive Brian Cornell on a
The National Football League
accused Dallas Cowboys owner
Jerry Jones of trying to sabotage its contract negotiations
with commissioner Roger Goodell.
The tension has grown so severe that the topic of removing
Mr. Jones has been discussed by
at least some owners, according
to people familiar with the matter. That type of drastic action
would require the league to
show conduct detrimental to
the NFL—which is exactly the
language the league used in a
letter sent to Mr. Jones’s attorney, David Boies, on Wednesday.
The letter, reviewed by The
Wall Street Journal, says Mr.
Jones’s “antics, whatever their
motivation, are damaging the
League.”
That letter was shared with
all of the league’s 32 owners. It
was in response to a Tuesday
letter from Mr. Boies, who
wrote that “Mr. Jones is in possession of a document that
shows that certain statements
made about those negotiations
are not accurate.”
In a radio interview Tuesday,
Mr. Jones described any chatter
about his ouster “ridiculous.” A
spokesman for the Cowboys
didn’t immediately respond to a
request for comment.
The conflict marks a dramatic reversal for Mr. Jones,
who in a matter of weeks has
gone from being one of football’s most influential figures to
$7B
The cost of Target’s digital and
store revamp
conference call. “That’s reflected in the start that we’ve
seen to the season and the approach we’re taking throughout the fourth quarter.”
After a weak 2016 holiday
performance, Target has been
making headway on its threeyear plan to spend $7 billion
on stores and digital improvements. On Wednesday, Mr.
Cornell highlighted ship-fromstore capabilities, new brands,
store remodels and a revamped promotional strategy.
Despite higher third-quarter sales, both in stores and
online, Target’s profit fell 21%
to $480 million, or 88 cents a
share, in the quarter.
The company’s profit margins declined and expenses
rose as it remodeled stores
and lowered prices.
The company also expects
higher compensation costs
driven by investments in employee hours and wages.
Earlier this year, Target
said it planned to hire 100,000
temporary workers over the
holiday period—a 40% increase from last year—and
was raising its hourly minimum wage to $11 this year.
Target’s progress has been
slow and costly, said Neil
Saunders, managing director
at GlobalData Retail, in a note
following the earnings release.
“The latest results from
Target are undoubtedly another step in the right direction,” Mr. Saunders wrote. “It
has also cost the company a
great deal to travel even this
short distance.”
As part of its investment
plan, Target has lowered
prices on thousands of household items, a move that has
made it more competitive with
Wal-Mart.
MATT DUNHAM/ASSOCIATED PRESS
League accuses
Cowboys’ Jones of
‘detrimental’ actions
on Goodell talks
Cowboys owner Jerry Jones, right, has been sharply critical of Commissioner Roger Goodell’s suspension of running back Ezekiel Elliott.
one who is effectively ostracized from the league. It also
raised the specter of a protracted civil war within the
league, which has been largely
unified since a series of legal
battles with the late Oakland
Raiders owner Al Davis a generation ago..
Throughout the season, Mr.
Jones has sharply criticized Mr.
Goodell’s discipline of Cowboys
star running back Ezekiel Elliott
over violations of the league’s
personal conduct policy related
to alleged domestic violence.
Mr. Jones and the NFL Players
Association have called the suspension unfair and criticized
how the investigation was con-
ducted.
Mr. Elliott has denied the allegations and after a protracted
legal battle that kept him on the
field served the first game of
that six-game suspension last
Sunday.
Mr. Jones pivoted against
Mr. Goodell after Mr. Elliott’s
suspension, according to executives from around the league.
They said as recently as two
days before Mr. Elliott’s suspension was announced in August,
Mr. Jones expressed his continued support for extension of Mr.
Goodell’s contract as commissioner.
Although the league’s owners
voted unanimously in May to
Throughout Mr. Jones’s history as an owner, he has been
successful in not only expanding
the league’s business but getting his way. His decisions have
driven the league’s television
deals to unprecedented heights
and his opinions have typically
carried outsize weight among
the owners.
It is unclear how many other
owners support Jones. Two of
the executives from around the
league said Redskins owner Dan
Snyder may be the only one
who steadfastly supports Mr.
Jones’s efforts, and that if there
are others it is only a handful. A
spokesman for Snyder declined
to comment.
AT&T Proposal Would Test Antitrust Cops
BY BRENT KENDALL
WASHINGTON—If the Justice Department sues to
block AT&T Inc.’s planned
acquisition of Time Warner
Inc., the challenge would
likely raise
ANALYSIS novel legal issues, making
one of the most
ambitious antitrust cases in
decades hard to handicap.
In the typical merger case,
the government challenges a
proposed combination of two
companies that directly compete.
But the proposed AT&TTime Warner deal is a socalled vertical merger of
complementary businesses:
AT&T’s cable, wireless and
satellite distribution with
Time Warner’s popular content, including its offerings
on HBO and Turner networks
like CNN, TBS and TNT.
The government at times
has raised concerns about
vertical deals, but a lawsuit
against AT&T would require
a judge to confront legal issues that courts haven’t
faced in recent memory.
“In terms of importance
to antitrust, there hasn’t
been a vertical merger case
in more than 30 years,” said
Steven Salop, a professor of
economics and law at
Georgetown University.
Justice Department officials have told AT&T they
are concerned the telecom
The proposed AT&T-Time Warner deal is a so-called vertical merger. Above, an AT&T store in Boston.
giant would have anticompetitive leverage if it controls so much popular video
content as well as distribution, including through satellite arm DirecTV. The Justice
Department has been laying
the groundwork for a legal
challenge if no settlement
could be reached.
The department recently
contacted some state attorneys general about joining a
government antitrust case,
the latest sign that a lawsuit
could be close, according to
people familiar with the
matter. The states’ responses
couldn’t be learned.
Legal observers said there
are several arguments the
government could pursue—
and several defenses AT&T
could make. “It’s not crazy
to be against it or in favor of
it,” said Stanford University
economics professor Roger
Noll. “It’s a fairly close call.”
AT&T argues the department’s concerns are misguided, especially in an age
where consumers have a
growing array of programming and are cutting the
cord from pay-TV services.
AT&T says that the deal
would help make film and
TV more affordable for consumers, and that the Justice
Department has no valid ba-
‘Bearish’ Deal Helps Weinstein Co.
©WEINSTEIN COMPANY/EVERETTE COLLECTION
BY BEN FRITZ
Weinstein Co. is getting a
cash infusion from a furry
bear to help it stay afloat
while considering options for
a sale or shutdown.
The beleaguered independent studio and partner Studio
Canal, part of Vivendi SA,
have sold U.S. and Canadian
distribution rights for the animated sequel “Paddington 2”
to Time Warner Inc.’s Warner
Bros., the companies said.
Warner is paying about $32
million for rights to release
the film Jan. 12, said people
with knowledge of the deal.
The proceeds are to be divided
between Weinstein Co. and
Studio Canal, these people
added.
The first “Paddington,” in
2015, was the studio’s biggest
hit of the last two years,
grossing $76.3 million in the
U.S. and Canada. The sequel
appeared to be the most
promising movie on the stu-
proceed with negotiations for a
Goodell contract extension, Mr.
Jones has in recent weeks
stepped up efforts to halt the
process. He hired one of the
country’s most prominent litigators, Mr. Boies, and threatened
to sue the league and its owners
over the issue. That resulted in
his banishment from the compensation committee, where he
served as an ad hoc member.
Mr. Jones has said he isn’t
out for vengeance, but rather
has been concerned about the
structure of the contract and
the rush to get it done when
there is still about a year and a
half left on Mr. Goodell’s current deal.
SEAN PROCTOR FOR THE BOSTON GLOBE/GETTY IMAGES
Spending
For Target
Overhaul
Hits Profit
Warner Bros. is paying $32 million for ‘Paddington 2’ rights.
dio’s release slate for the next
few months.
Studio Canal financed the
follow-up, which has already
grossed $13.2 million overseas
and opened No. 1 at the U.K.
box office. But Weinstein Co.
had bought U.S. and Canadian
distribution rights.
The American indie studio
has been racked with problems since co-Chairman Harvey Weinstein was fired following allegations of sexual
misconduct. It needs cash to
continue operations while considering options for its future,
which could include a sale or a
shutdown in which it sells assets through bankruptcy, said
people close to the company.
Weinstein Co. was previously close to receiving a loan
of between $30 million and $50
million from Fortress Investment Group, but that is now
unlikely to happen, said one of
the people with knowledge of
the “Paddington 2” deal.
This person added that the
studio isn’t now planning to
sell distribution rights to
other movies on its release
slate, including the drama
“The Current War,” the comedy “The War with Grandpa”
and “The Upside,” a remake of
a hit French comedy that will
star Kevin Hart and Bryan
Cranston.
“The Current War,” which
stars Benedict Cumberbatch
and once was considered an
Academy Awards contender,
was originally scheduled to
come out Nov. 24 but has been
delayed indefinitely. “War with
Grandpa” and “The Upside”
are scheduled for release Feb.
23 and March 9, respectively.
sis for challenging this vertical transaction, especially
when it has allowed so many
others, including Comcast
Corp.’s 2011 takeover of
NBCUniversal.
Under one theory, Justice
could argue that a postmerger AT&T would have the
power to push for larger carriage fees for Time Warner
channels, a move that could
hinder rival cable and satellite companies as well as the
development of online payTV distribution.
Mr. Noll said the department’s best argument on
that issue could be related to
sports programming, which
is in high demand even when
fewer channels are considered “must-have” offerings.
Time Warner’s Turner division, for example, holds
rights along with CBS Sports
to broadcast the NCAA men’s
college basketball tournament. TBS televises some
Major League Baseball playoffs, while TNT is a leading
broadcaster of National Basketball Association games.
The department could argue the merger would allow
AT&T to prioritize its content at the expense of rivals
and consumers, perhaps by
putting competing channels
on more expensive tiers of
service.
There are counterarguments, however, that any
such tactics by AT&T would
be self-defeating.
Disfavoring rival channels
on DirecTV could prompt
customers to switch to a different provider.
And if other pay-TV providers dropped Time Warner
channels in the face of
higher fees, fewer people
would be watching, which
could hurt advertising rates
and revenue.
“The substantive arguments are going to be tough
for the government,” said
Herbert Hovenkamp, a leading antitrust expert who
teaches at the University of
Pennsylvania law school.
—Drew FitzGerald
contributed to this article.
SandRidge and Bonanza
Agree to Energy Merger
BY CARA LOMBARDO
SandRidge Energy Inc. said
Wednesday it has reached a
deal to buy Bonanza Creek
Energy Inc. for $746 million in
cash and stock.
Under the agreement, Bonanza Creek shareholders will
receive $36 a share, with $19.20
in cash and $16.80 in SandRidge shares. This represents a
17.4% premium to Bonanza
Creek’s Tuesday closing price.
SandRidge shares fell 13%
to $16 after the agreement’s
announcement Wednesday.
The Wall Street Journal
first reported the deal was in
the works Tuesday evening.
SandRidge CEO James Bennett said in prepared remarks
that the deal would add a
“deep inventory of drill ready
locations” in Colorado’s Denver-Julesburg Basin to SandRidge’s portfolio and give
economies of scale.
The combined SandRidge
and Bonanza Creek operations
would produce about 55,000
barrels of oil equivalent per day.
Bonanza Creek and SandRidge were among the largest
of more than 120 North American oil-and-gas producers bankrupted by plunging oil prices.
Their deal comes as prices have
rebounded and could signal
more energy companies will
merge to increase efficiency.
SandRidge has a market
value of about $690 million,
while Bonanza Creek’s was
about $640 million as of market close Tuesday.
Both companies’ boards
unanimously approved the
deal, which is subject to regulatory and shareholder approval.
Morgan Stanley and Vinson & Elkins LLP advised
SandRidge on the deal. Evercore and Kirkland & Ellis LLP
advised Bonanza Creek.
—Dana Mattioli
and Ryan Dezember
contributed to this article.
THE WALL STREET JOURNAL.
B4 | Thursday, November 16, 2017
TECHNOLOGY
WSJ.com/Tech
Charge an iPhone Fast, or Wirelessly
BY JOANNA STERN
Power Struggle
It makes sense to step up to an
iPad charger, but splurging on the
USB-C brick will only provide a
small additional boost.
iPhone 8
Plus
X
2 hrs. 25 mins.
5W standard
3 hrs. 5 mins.
IVAR DAMERON/THE WALL STREET JOURNAL
A drained
iPhone X is
charging to
100% with its
little white
brick. Meanwhile, a car with four flat
tires is being pushed uphill
by a small child—in sandals—to a gas station 5 miles
away. Which arrives first?
The car, of course.
I pick on Apple’s longserving 5-watt charger for
two reasons: 1) Not even the
owner of a $450 iPhone—let
alone a $1,000 one—deserves
a charger that can be twice
as slow as standard Android
options. 2) It flies in the face
of all the exciting advancements happening in smartphone power technology.
The iPhone 8, 8 Plus and
X are capable of wireless
charging and fast charging—
two things Android phones
have had for years.
Wireless charging means
you can toss your phone on a
pad on your desk and it will
charge throughout the day.
With a fast charger, you plug
your phone in and go from
zero to 50% in 30 minutes.
But figuring out which
gear you need is complicated. I went in search of the
best options for both speed
and wireless convenience,
charging and draining
iPhones nearly 30 times. My
finding: Getting the best
chargers doesn’t mean running up your credit card.
Android users: I also ran
tests on the Samsung Galaxy
S8 and the Google Pixel 2,
but because their in-box
3 hrs. 7 mins.
2 hrs. 5 mins.
12W iPad
2 hrs. 10 mins.
2 hrs. 12 mins.
Wireless chargers, from left: Mophie Wireless Charging Base, Samsung Fast Charge, Belkin BoostUp
chargers are so good, I have
less advice for you.
Best Fast Charger
Apple makes a bold claim
with all the new iPhones:
“Use fast charge to recharge
iPhone up to 50% battery in
30 minutes.”
Sign me up! Well, not so
fast. Here comes the fine
print: That speed comes
from a $50 29-watt USB-C
charger and a $25 USB-C-toLightning cable. Fast charging, or six months of Netflix?
You decide
In my tests, I confirmed
Apple’s 30-minute claim,
then something else. The 12watt charger that comes
with iPads (or costs $20 separately), which takes a regular Lightning cable, can hit
50% in about 40 minutes.
Even when charging up to
100%, the difference between
the 12-watt and 29-watt was
never more than 10 minutes.
While higher-wattage
chargers can go faster, the
speed at which a battery will
charge is governed by phone
software. Google’s Pixel 2
comes with an 18-watt charger but can charge in 1.5
hours. The iPhone 8, with a
24-watt charger, takes 30
minutes more.
Best Wireless Charger
I tested a range of wireless charging pads, and all
the new iPhones consistently
charged slower than they did
with the included 5-watt
brick. All these chargers
worked with basic protective
phone cases, too, though
those did seem to make it
harder to find the pad’s magnetic sweet spot.
For now, iPhone software
only supports 5-watt wireless charging, but the next
iOS version, 11.2, currently in
beta, should allow these
phones to get a bit more
power from the higher-wattage wireless chargers.
Apple expects to launch
its own AirPower wireless
mat, which will charge an
Apple Watch and AirPods at
the same time, in 2018.
For now, it sells the $60
Belkin BoostUp and the $60
Mophie Wireless Charging
Base, both which are optimized for the faster charging. Of the two, I prefer the
Mophie.
But the new iPhones support other chargers that run
on the Qi wireless standard,
so I broadened my search,
and found that Samsung’s
gear was the best. The $43
29W USB-C
2 hrs. 3 mins.
2 hrs. 0 mins.
2 hrs. 2 mins.
Note: To minimize variables, tests were done
with Airplane Mode enabled and screen
turned off.
Sources: Apple (photos); WSJ analysis
of charging times
THE WALL STREET JOURNAL.
Samsung Fast Charge Wireless Pad charged faster than
Apple’s picks (even without
the software update).
If you’re willing to
splurge, the $90 Samsung
Fast Charge Wireless Charging Convertible is the Cadillac of wireless mats. The
roomy pad has a built-in
stand, which is especially
handy if you use FaceID on
the iPhone X.
Surf and Turf? WeWork Invests in Wave Pools
BY ELIOT BROWN
leasing business that makes up
the vast majority of its revenue,
which annualized totals more
than $1 billion.
Within the past month, WeWork launched fitness club Rise
by We; bought a coding academy called the Flatiron School
that offers crash courses in
The Mart
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technology; and announced
plans for an elementary school
called WeGrow. WeWork is also
planning endeavors into numerous other areas, including
retail and music, according to
people who have spoken with
WeWork executives.
A WeWork spokesman said
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The worry for some investors is that this high bar for
Asian companies could set
them up for stock declines if
their results miss analysts’ expectations, even if profit or
revenue is decent overall. The
other concern is that many
stocks could be vulnerable if
the tech engine driving the
gains fades.
In late October, the U.S.listed shares of Baidu Inc.
than 20% this year, driven in
large part by Samsung.
Tencent shares slipped 1.3%
in Hong Kong trading on
Wednesday before the company reported a 69% jump in
third-quarter profit to 18 billion yuan and revenue of 65.2
billion yuan.
Tencent’s performance was
driven by growth in mobile
gaming and advertising sales,
particularly in its videostreaming platform. Revenue
Australian surfer Nikki Van Dyk at a Wavegarden facility in Aizarnazabal, Spain, in 2013.
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in an email that the company
has “made meaningful investments to significantly enhance
our product offering.”
WeWork’s expansion into
disparate services further muddles the blueprint of one of the
most valuable U.S. startups.
WeWork Chief Executive Adam
ANDER GILLENEA/GETTY IMAGES
WeWork Cos. has attained a
$20 billion valuation as an office-leasing company. But its
ambitions are extending well
beyond the workplace—and
into the water.
The seven-year-old New
York company has purchased a
large stake in Wavegarden, a
maker of wave pools, according
to a WeWork spokeswoman
who said the investment occurred in mid-2016. The investment hadn’t been previously
reported.
It isn’t clear how Wavegarden—whose technology creates
artificial waves up to 8 feet
high for surfing at giant water
facilities—would fit with WeWork, which takes on longterm leases for offices and remodels them into common
spaces with a hip, millennialconscious vibe.
The deal is part of a blitz of
acquisitions and new ventures
apparently designed to thrust
WeWork past the office-sub-
Neumann has wavered over defining the company. At various
times, he and other executives
have described it as a community company, a lifestyle company and a platform for entrepreneurs.
WeWork is among a crop of
startups with sky-high valuations that are expanding into
side business and crafting longterm growth stories to move
beyond their central businesses. The chief executive of
Airbnb Inc., valued at $31 billion, has described the homerental site as a “holistic travel”
agency.
WeWork has struggled with
newer business lines. Its residential adult dormlike offering
called WeLive in 2014 was projected to make up nearly 20%
of revenue by now. Today it has
just two locations.
Wavegarden, a Spanish company founded in 2005, makes
water facilities with technology
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this year, more than double the
15% gain in the S&P 500 index
over the same period.
Traditionally, whether in
Asia, Europe or the U.S., stock
analysts’ earnings expectations
tend to start off more optimistic and get cut as the year progresses and companies report
quarterly results.
That has been the case in
the U.S. this year, where analysts are now estimating 2017
earnings per share growth of
9.5% for companies in the S&P
500 index following three
quarters of results. At the
year’s outset, they had predicted 11.2% in profit growth,
according to FactSet.
Strong results so far this
year from Samsung, Alibaba
and semiconductor giant Taiwan Semiconductor Manufacturing Co. have helped drive
the rise in Asian earnings estimates. Booming demand for
smartphones continues to fuel
exports in the region, including
South Korea, where the country’s semiconductor export
growth hit a high recently, according to Goldman Sachs.
Because of rising profits,
many investors believe that
stocks can continue to rally
even after markets have already hit records or multiyear
highs this year.
“There is a lot of belief that
things will continue to be wonderful for a long period of
time,” said Arthur Kwong, head
of Asia-Pacific equities at BNP
‘My peers and I, we’ve all been consistently
wrong on forecasting these names.’ As the
companies keep beating estimates, ‘we’re
all going back and revising
our assumptions.’
John Choi, head of Hong Kong and
China internet research at Daiwa Capital Markets
dropped 9.3% in the two days
after the Chinese search-engine giant reported a surge in
profit but said revenue rose
29% to 23.49 billion yuan
($3.53 billion), slightly missing
analysts’ expectations. Shares
are still up 43% so far this
year.
“When you are going
through high growth periods,
the share price…can be quite
sensitive to a minor adjustment of the forecast or earnings,” said Mr. Kwong.
Tencent’s stock surge alone
has been a key contributor to
the Hong Kong’s Hang Seng
benchmark index, which is
hovering near a 10-year high.
South Korea’s Kospi index,
meanwhile, has gained more
from video advertising grew
70% from the year-earlier period.
Smartphone gaming revenue rose 84% from a year earlier, anchored by smash hit
battle game “Honor of Kings.”
Kirk Boodry, an analyst at
New Street Research in Singapore, said he increased his
2017 profit growth estimate after Tencent reported a similar
surge in its second-quarter
profit in August. He said he
previously underestimated how
much revenue the company
would make.
On Wednesday, Tencent’s
results met Mr. Boodry’s earnings estimate but beat his sales
forecast. “The company is hitting on all cylinders,” he said.
Elon Musk
Promotes
Truck Like
Showman
BY TIM HIGGINS
AND BOB TITA
Billionaire
entrepreneur
Elon Musk will find himself in a
familiar place on Thursday
night, pitching an unconventional idea to capture the imagination of investors—while his
company, Tesla Inc., is grinding through “production hell”
with the Model 3 sedan.
This time, Mr. Musk will be
promoting an electric semitrailer truck, which he has
been trumpeting on Twitter
for months. “This will blow
your mind clear out of your
skull and into an alternate dimension,” Mr. Musk, Tesla’s
chief executive, promised in a
tweet Sunday ahead of this
week’s demo event in Hawthorne, Calif.
Tesla shares the next day
soared 4%—the kind of pop
that continues to fuel Tesla’s
stock run this year as expectations build for Mr. Musk to
fulfill his vision of a world
complete with electric selfdriving vehicles.
Mr. Musk was similarly
touting plans for the Model 3
while Tesla struggled to rampup manufacturing of the
Model X in 2015, and last year
he hosted a flashy event laying
out his vision for making solar-panel roofs sexy.
“It’s exceptionally clear that
over time, product announcements have helped to bolster
the stock and cover up shortfalls in deliveries or manufacturing issues,” said Mike Ramsey, an industry analyst for
Gartner Inc.
The showman’s latest flourish comes as Tesla runs low on
cash and struggles to massproduce the Model 3, a
$35,000 sedan that is the cornerstone of Mr. Musk’s plan to
transform Tesla from being a
niche luxury player to a mainstream auto maker.
Elon Musk:
‘This will blow
your mind clear
out of your
skull and into
an alternate
dimension.’
Tesla has fallen behind its
production goals for the
Model 3 during the early
manufacturing period that
Mr. Musk has termed “production hell.” The company
began production in July
without its assembly system
fully ready in Fremont, Calif.,
The Wall Street Journal has
reported, and has cited issues at its battery factory in
Nevada.
Tesla made just 260 Model
3s during the third quarter and
pushed back its goal of making
5,000 of the vehicles a week
until late into first quarter
from the fourth quarter. The
Model 3 delay raises questions
about Tesla’s ability to reach a
goal of making a half-million
vehicles, including the Model S
and Model X, next year.
An electric truck isn’t a farout idea for Tesla.
As with automobiles, Mr.
Musk believes Tesla can transform the trucking industry by
reducing emissions and improving safety. And at an average price of $120,000 to
$150,000, a heavy-duty, dieselpowered truck costs as much
as high-end versions of Tesla’s
Model S sedan and Model X
sport-utility vehicle.
Tesla’s electric truck, possibly two years away from
entering production, “could
be the biggest catalyst in
trucking in decades,” Morgan
Stanley analyst Ravi Shanker
wrote in a note to investors
in September. Piper Jaffray
analyst Alexander Potter has
said truck makers “would be
wise to stymie their laughter” and take Mr. Musk’s
plans seriously.
But unlike a luxury-car
buyer, who is driven by emotion and desire, commercial
trucks are largely a business
expense for trucking companies. Truckers place a premium on reliability and are
slow to embrace change without a clear cost benefit.
On Wednesday, Mr. Musk
tweeted a silhouette of a truck
and wrote, “It can transform
into a robot, fight aliens and
make one hell of a latte.”
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.
Thursday, November 16, 2017 | B5
MANAGEMENT
BY JOHN SIMONS
One of the first things visitors notice when they enter
the Irvine, Calif., offices of
Bryan Cave LLP is the granite
plaque etched with the law
firm’s 10-point code of civility.
The gray slab, displayed in
the firm’s reception area, proclaims that employees always
say please and thank you, welcome feedback and acknowledge contributions of others.
Such rules may seem more
at home in a kindergarten
than a law firm, but Stuart
Price, a longtime partner, says
they serve as a daily reminder
to keep things civil at work.
Incivility—and its more extreme cousin, bullying—is becoming a bigger problem in
workplaces. Nearly two-thirds
of Americans reported that
they were bullied at work last
year, up from roughly half of
workers in 1998, according to
research conducted by Christine Porath, a management
professor at Georgetown University’s McDonough School of
Business. These people reported they were “treated
rudely at least once a month”
by bosses or co-workers in the
past year—which Prof. Porath
defined as being bullied.
Bullying costs companies in
ways large and small, cutting
into productivity and turning
off customers, management
experts say. Workplace behavior is under the microscope after recent allegations of sexual
harassment in Hollywood,
technology and media. Some
companies have found, as a result of investigations into harassment claims, that bullying
and boorish behavior are more
common than suspected.
Managers know there can
be a fine line between a tough
boss who gets results and a
bully. According to one rule of
thumb that human-resources
consultant Fran Sepler tells
her clients, feedback focused
exclusively on improving an
employee’s conduct or quality
of work will rarely be seen as
bullying. “It’s okay to set high
standards and reinforce those
standards,” Ms. Sepler says.
Prof. Porath’s research indicates the toll bullying can
take. In one study, an experimenter belittled participants,
who then performed 33%
worse on word puzzles and
generated 39% fewer creative
ideas in a brainstorming task.
Work environments with
large numbers of young employees, significant power disparities or where a few stars
bring in a lot of business all
are conditions that can give
rise to bullying, a 2016 Equal
Employment
Opportunity
Commission task force report
on workplace harassment concluded. The task force recommended employers set up systems where employees can
report bad behavior, sometimes via a third party.
Riot Games Inc., maker of
the popular League of Legends
computer game, has taken an
active approach to rooting out
bullies. Worried that incivility
in its games might scare off
players and even tarnish its
workplace, managers analyzed
the chat logs of more than
1,800 employees who played
its most popular game.
The company says it found
a link between employees who
exhibited toxic game play and
those who had been fired in
the previous year. Riot Games
now asks job candidates for
their in-game identities during
recruiting, and considers applicants’ game-playing conduct
when making hiring decisions.
Before Bryan Cave posted its
civility code, “we may have
been doing things that we later
agreed were not civil,” Mr.
Price said. The code has emboldened people to speak up
when rules are broken, he said.
JOHN MINCHILLO/ASSOCIATED PRESS
Companies Wake Up
To the Problem
Of Bullies at Work
Automation is changing some jobs. A worker and a robot collaborate to make chain saws at a Stihl Inc. factory in Virginia Beach, Va
A Future Without Jobs? Think Again
Artificial intelligence and automation will create new roles for humans, studies say
BY VANESSA FUHRMANS
With robots on the march,
many tech visionaries foresee
a world with far fewer jobs.
The advance of artificial intelligence and automation, they
say, will make much of the
work people do obsolete.
Some entrepreneurs such as
Tesla Inc. founder Elon Musk
predict so little human work
will be left that a universal social-safety net will be needed
to maintain economic order.
But a sunnier employment
picture can be painted. At
least 21 new job categories
may soon emerge from technological and other societal
changes, says a new report
from IT-services and consulting firm Cognizant Technology Solutions Corp.
With titles such as “genetic diversity officer,” “virtual store sherpa” and “personal memory curator,” these
roles aren’t science fiction,
the study’s authors argue.
Rather, they are identified as
jobs many employers will
have to fill within the next
decade.
“It’s easier to understand
what types of jobs are going
to go away,” says Ben Pring,
director of Cognizant’s Center for the Future of Work,
who with two other Cognizant executives wrote the
2017 book “What to Do When
Machines Do Everything.”
The idea behind the report,
he says, was “to craft a credible narrative of what we’re
going to gain.”
Other studies have concluded that artificial intelligence and automation can
create jobs. Many companies
building AI systems have
found that humans must play
an active role in both building and running them. In retailing, store jobs lost to ecommerce have been
replaced by jobs in fulfillment centers.
But defining the jobs of
the future can be tricky,
some economists warn. Job
creation depends on how
much businesses invest in
their workforces, the demand
for certain products and services, and decisions made by
workers, says Michael Reich,
economics professor at University of California, Berkeley, and chairman of the Center on Wage and
Employment Dynamics.
Still, he says he disagrees
with the grim no-jobs future
that some envision. “Even if
an employer would love to
replace all of their workers
with robots to make their
cars, someone needs to be
able to buy those cars made
by robots for the business to
function.”
Several of the jobs that
Mr. Pring and his colleagues
envision involve helping
companies manage artificial
intelligence and automation.
There is what the study calls
“data detectives”: workers
who dig into their employer’s
data stockpiles and generate
business recommendations.
“Man-machine teaming managers” will be needed to ensure machines and human
workers collaborate in a way
that maximizes results, the
study says.
On the low-tech end of the
spectrum, the study describes rising demand for
“walker-talkers,” gig workers
who answer calls to assist
and provide companionship
for a growing elderly population as people live longer.
Mr. Pring and his colleagues say the dawning age
of intelligent machines won’t
be without painful upheaval:
They estimate about 19 million positions in the U.S. will
be automated out of existence in the next 15 years,
while employers create some
21 million new roles. At the
same time, the majority of
existing ones will likely be
enhanced. “Work will change,
but it won’t go away,” Mr.
Pring says.
—Kelsey Gee
contributed to this article.
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B6 | Thursday, November 16, 2017
* *
THE WALL STREET JOURNAL.
BUSINESS NEWS
Inc.
U.K. Deals SpiritsSector a Setback Time
Tries TV
Nation’s Supreme
Court rules Scotland
can set a floor on
prices for beverages
BY SAABIRA CHAUDHURI
The U.K.’s Supreme Court
has ruled that Scotland can set
a floor on beverage prices—a
landmark decision that could
set a precedent for other
countries.
With the ruling, Scotland
will become the first country
to implement a per-unit floor
price for alcohol, which is
meant to curb heavy drinking
by boosting the price of the
cheapest alcoholic beverages.
Unlike a tax, a minimum per
unit price can’t be absorbed
by retailers and customers
can’t just trade down to a
cheaper option.
Currently, a three-liter bottle
of white cider can cost as little
as £3.59 ($4.73) and contain
22.5 units of alcohol—almost
nine units more than an adult’s
recommended weekly limit in
the U.K., according to the European Alcohol Policy Alliance.
Minimum unit pricing would
raise the price of a big bottle of
cider to £11.25. A bottle of wine
would sell for a minimum of
£4.32 and whisky for £14.
A handful of countries already implement a floor price
on alcohol, but it isn’t per
unit—equal to 10 milliliters of
pure alcohol—allowing people
to trade down. Parts of Canada
have some form of minimum
unit pricing.
The ruling comes as a setback for some of the world’s
biggest alcohol makers, who
successfully tied up the issue
in court for five years, worried
this could have a ripple effect.
Scottish Health Secretary
Shona Robison hailed the ruling’s “global significance” and
said alcohol-related deaths in
Scotland had increased in the
period the beverage industry
had blocked the move.
She said the government
would implement the ruling as
soon as possible, after consulting on the price floor and updating its assessment of the
business and regulatory impact.
Wales said in October it
would introduce a law to force
a floor price per unit of alcohol, and public health campaigners and politicians called
for the overall U.K. government to do so as well.
In 2012, the semiautonomous Scottish government
passed legislation that set a
minimum price for all alcoholic
beverages of 50 pence a unit.
The Scotch Whisky Association—which counts Johnnie
Walker maker Diageo PLC and
Jim Beam maker Beam Suntory Inc. among its members—
filed a complaint in 2012 with
the European Commission.
After years of the case
bouncing between courts in
Scotland and Europe, it landed
with the U.K.’s Supreme Court,
which Wednesday ruled unanimously in favor of the measure.
Karen Betts, chief executive
of the SWA, said the association accepted the ruling.
Silicon Valley Firms Back Music Venture
When Steve Stoute was
working at Interscope Records
in the late 1990s, he recalls
tossing around an idea with record producer and Interscope
co-founder Jimmy Iovine to
create an advertising business
that would insert brand logos
into CD jewel cases, creating an
“audio experience brought to
you by Apple or Nike.”
“The idea didn’t go anywhere, but I’ve been thinking
about it since then,” said Mr.
Stoute, who left the record label in 2001 and founded the ad
agency Translation in 2004,
where he is chief executive.
Almost two decades later, he
is bringing advertising and music together, but without the
jewel cases. Mr. Stoute has unveiled a music venture called
UnitedMasters with $70 million in funding from investors
including Google parent Alphabet Inc., Andreessen Horowitz
and 21st Century Fox. 21st
Century Fox and Wall Street
Journal parent News Corp
share common ownership.
The San Francisco-based venture, which has been building a
40-person team, will help upand-coming artists get their music on streaming platforms like
Spotify and Pandora and use on-
JERRITT CLARK/GETTY IMAGES
BY ALEXANDRA BRUELL
From left, Steve Stoute, Jake Gyllenhaal and Jay-Z at New York’s Madison Square Garden in 2015.
line tools to market the musicians and help them reach fans.
The group, and the data it
gleans, will also help brands target certain types of music fans.
“We want to build a business that helps musicians,
which is my passion, and also
helps brands find a much more
specific way of investing their
money in the category of music,” Mr. Stoute said.
UnitedMasters and his ad
agency Translation will be part
of a new holding group called
Translation Enterprises.
Musicians will pay UnitedMasters what Mr. Stoute describes as “the lowest price
for distribution” to get their
songs to stream on music
sites, and the company in turn
will pay the streaming companies. UnitedMasters will, in
some cases, get a small percentage of the money the artists make when their songs
are streamed. In other custom
deals with musicians, UnitedMasters may get a percentage
of merchandise or ticket sales.
In return, the artists will be
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able to use UnitedMasters’ system to glean insights into who
their fans are.
For example, individual artists can see who is listening to
their songs, and then use the
company’s tools to automatically
retarget the listeners through
online ads promoting new songs,
merchandise or tour dates.
Ben Horowitz, a co-founder
of Andreessen Horowitz, which
is an investor in UnitedMasters, said the new firm helps
answer the question of “how
do you convert cultural capital
into financial capital.”
“This idea is particularly
relevant in that we’ve gotten
to a time when businesses really know their customer,” Mr.
Horowitz said. “It’s very powerful information that drives a
tremendous amount of revenue, and musical artists have
no idea who their customers
are.”
Artists can create accounts
with UnitedMasters, but the
team and its technology are
working to scour platforms
like music-streaming site
SoundCloud and YouTube to
discover promising new talent. The group is working
with 1,000 musicians, according to Mr. Stoute, who added
that the artists will still own
the rights to their music.
UnitedMasters will also
help brand clients target certain types of music fans, Mr.
Stoute said. For example, an
automotive company may be
trying to get its message in
front of young people who are
in the market for a certain
type of car. UnitedMasters
could then match separate
data sets to see which fans of
a certain musician are in the
market for a car, and then
serve them online ads that
feature a song by that particular artist.
For Sports
Illustrated
BY JEFFREY A. TRACHTENBERG
Time Inc. on Thursday will
launch Sports Illustrated TV, a
subscription streaming service
built around its iconic sports
publication, as the company
tries to counter punishing economics in its legacy business
with bets on digital media and
video.
The service, priced at $4.99
a month, will initially be accessible only on Amazon
Channels, which allows Amazon Prime members to subscribe to more than 130 subscription video channels.
The network is expected to
launch with 130 hours of content, including a mix of original documentary series, studio
shows, programming related
to the Sports Illustrated swimsuit franchise, and a package
of sports movies. It won’t air
any live sporting events.
“It gives us a way to optimize what people most value
about Sports Illustrated: deep
storytelling and journalism
that matters,” said Chris
Stone, editor in chief of the
Sports Illustrated Group, in an
interview. “Our stories will
translate very well to a
streaming platform, and we’re
approaching stories from both
perspectives.”
Sports Illustrated has a print
circulation of 2.8 million, according to the Alliance for Audited Media. Mr. Stone said he
hopes many of the magazine’s
subscribers will sign up for the
subscription video service.
The new service comes at a
crucial juncture for the Sports
Illustrated franchise, long one
of Time Inc.’s most important
properties. Last month, in a
move that reflects the difficult
environment for print magazines, Time Inc. said it would
publish only 27 print issues of
Sports Illustrated in 2018,
down from 38 in 2017.
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Thursday, November 16, 2017
THE WALL STREET JOURNAL.
* *
BUSINESS NEWS
Patent dispute shows
challenge of when a
new product is followed
by similar ones
BY RUTH SIMON
It may go down as the most
expensive water-balloon fight in
history.
On Tuesday, a Texas jury began hearing arguments in a dispute between the inventor of
Bunch O Balloons, a toy used to
fill dozens of water balloons at
once, and TeleBrands Corp., the
company known for the “As
Seen on TV” logo, which makes
a similar product.
Bunch O Balloons now generates about $125 million a year in
sales, according to Zuru Ltd.,
which brought inventor Josh
Malone’s product to market.
Patent-infringement lawsuits
against TeleBrands and sellers
of TeleBrands’ competing balloon toys have cost nearly $10
million, said Zuru’s operating
chief, Anna Mowbray.
“The problem with patent litigation is that it never ends until one of the parties is exhausted financially,” said Mr.
Malone, who is based in Plano,
Texas. He said he came up with
the idea for the toy in 2014. “We
are fortunate that we have sold
enough product to be able to
fund the litigation,” he said.
TeleBrands, a closely held
firm in Fairfield, N.J., that sells
about 50 products and manufactures nearly all of them, introduced quick-filling water-bal-
loon toys in late 2014. Its chief
executive, A.J. Khubani, said the
profits have been eclipsed by
the costs of the dispute over its
balloon toys. Zuru and Mr. Malone have sued TeleBrands several times because it has introduced successive versions of the
toy. Mr. Khubani, who denies infringing on the Bunch O Balloons patents, declined to quantify his firm’s balloon-toy sales
or legal costs.
The dispute highlights how
the launch of a successful new
product is often quickly followed by the arrival of similar
products, which can trigger
costly patent disputes.
“Even if it seems like a slamdunk case, you are looking at
hundreds of thousands of dollars to get into court and many
years of appeals to enforce your
patent,” said Colleen Chien, an
associate professor at Santa
Clara University School of Law
in California.
The median cost of a patentinfringement case, including appeals, is $500,000 for disputes
involving less than $1 million in
potential damages, and $3 million for cases when more than
$25 million is at stake, according to the American Intellectual
Property Law Association.
In addition to suing TeleBrands, Mr. Malone has filed
suit against retailers carrying its
balloon toys, including Bed Bath
& Beyond Inc., Walgreens Boots
Alliance Inc. and Sears Holdings
Corp. Walgreens and Bed Bath &
Beyond representatives declined
to comment, while a Sears
spokesman said: “Our vendor
F. MARTIN RAMIN/THE WALL STREET JOURNAL
Battle Over
Balloon Toys
Pops Open
Bunch O Balloons, invented by Josh Malone, a father of eight children, is a toy used to fill dozens of water balloons at once.
TeleBrands is standing by its indemnification of all retailers.”
Mr. Khubani declined to
comment on the indemnification issue.
The case being heard this
week consolidates a lawsuit
filed by Mr. Malone and Zuru
against TeleBrands with Mr. Malone’s suit against the retailers
alleging patent infringement.
Mr. Malone declined to say how
much he is seeking in damages.
For its part, TeleBrands has
disputed Mr. Malone’s patents.
TeleBrands has filed three separate legal actions against Zuru
in federal court, asserting that it
isn’t infringing on the balloon
patents, according to Lex
Machina, a legal analytics company. Two cases were settled in
2016 with terms undisclosed,
and one case, filed in June, is
currently pending.
Mr. Khubani said there were
no patents or published patent
applications when TeleBrands
introduced its Balloon Bonanza
in December 2014. After a patent was issued to Mr. Malone
for his balloon-filling method in
2015, TeleBrands reviewed the
patent, Mr. Khubani said, and
decided it wasn’t valid because
of “prior art,” documents and
materials on other inventions
that predate the patent.
for filling containers with fluids,” according to patent office
records. Zuru sent a cease-anddesist letter to TeleBrands in
December 2014, after learning
about the rival product.
Early this year, the Patent
Trial and Appeal Board—the
federal panel that hears intellectual-property challenges—declared certain portions of Mr.
Malone’s patent to be “unpatentable,” in response to a
challenge filed by TeleBrands.
Mr. Malone said he is appealing the ruling. The board is expected in December to hold a
hearing on challenges brought
by TeleBrands to two other portions of the water-balloon patents. Mr. Malone has secured
preliminary injunctions in federal district court in Texas
blocking the sale of three TeleBrands balloon products: Battle
Balloons, Balloon Bonanza and
Easy Einstein Balloons.
A mechanical engineer by
training, Mr. Malone said he
thought of Bunch O Balloons after spending hours filling water
$125M
how much Bunch O Balloons
generates in sales a year
Mr. Khubani said TeleBrands
has patents on its balloon toy
and some of the products it
sells.
Mr. Malone filed a patent application based on his Bunch O
Balloons invention in February
2014 and was issued his first
patent in June 2015, according
to a report issued by a U.S. magistrate judge as part of the litigation. Mr. Malone holds patents for “a system and method
balloons for his eight children,
and during the summer of 2014
raised over $900,000 on Kickstarter for the idea, quickly
drawing the attention of national retailers and media.
In December that year, Mr.
Malone said a friend saw his toy
advertised on TV under a different name: Balloon Bonanza.
TeleBrands was aware of
Bunch O Balloons when it
launched its own product, Mr.
Khubani said, but is “very, very
careful” not to infringe on patents. The firm has been a defendant in 28 patent lawsuits since
2000, according to Lex Machina.
Nine are open, 10 have settled
without any determination of
whether the patents were infringed, while the remaining
cases were consolidated, stayed
or transferred to other courts,
according to Lex Machina.
“Many companies use the legal system to try and stop competition. In every case we have
had, we have never been found
guilty of patent infringement,”
Mr. Khubani said.
Retailer Chief to Reap IPO Riches; Ex-Partner’s a Footnote
BY KHADEEJA SAFDAR
JOHN GREEN/ZUMA PRESS
Stitch Fix, a fashion startup
preparing to go public this
week, lists CEO Katrina Lake
as its sole founder on its website and in documents distributed to prospective investors.
But buried in a footnote of a
regulatory filing is a hint of
the type of ownership conflict
that often roils young companies early on. It names a cofounder, Erin Morrison Flynn,
who has been scrubbed from
most company records. Ms.
Flynn, as it turns out, sued Ms.
Lake and eventually settled
with her erstwhile partner.
Stitch Fix, a six-year-old
company that ships outfits to
customers to try on at home,
is seeking a public valuation as
high as $2 billion, according to
a filing with the Securities and
Exchange Commission. The offer is expected to price as soon
as Thursday and start trading
Friday, said people familiar
with the matter.
Ms. Lake, who owns about
15% of the company, plans to
sell one million shares in the
deal, collecting nearly $20
million. At the midpoint of
the proposed IPO price range,
the 34-year-old entrepreneur
would still own a stake worth
more than $250 million on
paper. That would make her
one of the youngest female
founders to take her company
public in recent years.
How much, or little, her former partner stands to make is
less clear. Ms. Flynn, who left
the company in 2012, isn’t
Stitch Fix CEO Katrina Lake, left, was accused by her former partner of trying to push the partner out.
listed as a major shareholder
in the SEC documents. She and
her attorney didn’t respond to
requests to comment. Ms. Lake
declined to comment.
In a “How We Got Here”
section on Stitch Fix’s website,
there is no reference to Ms.
Flynn’s role in its founding.
The website says “founder Katrina Lake created Stitch Fix”
and “shipped the first Stitch
Fix order out of her Cambridge
apartment in 2011 while attending Harvard.”
A lawsuit filed in the Superior Court of California in 2012
by Ms. Flynn against Ms. Lake
and Stitch Fix tells a different
story. The pair started the
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Fund
Data provided by
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. 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.
Fund
Net YTD
Wednesday, November 15, 2017
Net YTD
NAV Chg %Ret Fund
American Century Inv
44.67 -0.23
Ultra
American Funds Cl A
31.61 -0.15
AmcpA p
AMutlA p 40.86 -0.23
BalA p
27.34 -0.07
12.93 +0.02
BondA p
62.58 -0.17
CapIBA p
CapWGrA 51.92 -0.21
EupacA p
56.53 -0.24
63.03 -0.31
FdInvA p
51.10 -0.28
GwthA p
10.32 -0.03
HI TrA p
40.76 -0.22
ICAA p
IncoA p
23.22 -0.10
44.68 -0.17
N PerA p
47.37 -0.25
NEcoA p
NwWrldA
28.1 SmCpA p
TxExA p
17.8 WshA p
the company and his stake was
diminished, though he still became a billionaire.
Stitch Fix’s potential market
“Businesses change pretty
value compared to other
dramatically,” Prof. Mollick
retailers, in millions:
said. “What made two people
Abercrombie
$865
good together in the beginning
often changes when the organJ.C. Penney
$950
ization becomes larger.”
Stitch Fix*
$1,800
Noam Wasserman, a professor of entrepreneurship at the
University of Southern CaliforUrban Outfitters $2,800
nia, said raising a new round
of funding dramatically increases the chances that a
Nordstrom
$6,510
founder will leave. New investors can destabilize the management team by triggering a
realignment of equity ownership or by demoting one of the
Gap
founders, he said.
$12,780
“You would expect founders
*Based on
to stick around now that they
midpoint of
$18–$20 IPO range
can actually draw a salary,”
Sources: the companies
Prof. Wasserman said. “UnforTHE WALL STREET JOURNAL.
tunately, raising a new round
often blows up a founding
stake at Ms. Flynn’s expense team instead.”
Stitch Fix is pitching itself
and then forcing Ms. Flynn out
of the company in retaliation as more than just a traditional
for seeking legal counsel. Ms. clothing retailer. The company
Lake denied the allegations, says its stylists are aided by
and the two parties settled the software that analyzes purlawsuit in 2014, according to chasing behaviors and other
court records. Terms weren’t data to recommend outfits that
disclosed. Ms. Flynn still lists customers are likely to buy.
Since Ms. Flynn’s departure,
herself as “co-founder at Stitch
Ms. Lake has expanded the
Fix” on her LinkedIn page.
Conflict between co-found- business to nearly $1 billion in
ers is common at early-stage annual revenue and more than
companies, said Ethan Mollick, 5,800 employees. Unlike most
a professor of management at venture-backed startups, Stitch
University of Pennsylvania’s Fix has been profitable in sevWharton School. In a high-pro- eral years, according to the
file example, one of Facebook company’s IPO filing.
—Maureen Farrell
Inc.’s co-founders, Eduardo
contributed to this article.
Saverin, was squeezed out of
Stacking Up
NAV Chg %Ret Fund
65.86 -0.21
55.71 -0.25
13.03 +0.01
44.98 -0.24
12.6 Baird Funds
11.9 AggBdInst 10.90 +0.02
11.25 +0.02
3.2 CorBdInst
11.3 BlackRock Funds A
20.3 GlblAlloc p 20.15 -0.05
27.9 BlackRock Funds Inst
22.86 -0.07
18.0 EqtyDivd
20.28 -0.05
21.6 GlblAlloc
7.74 -0.02
5.4 HiYldBd
13.8 StratIncOpptyIns 9.90 -0.01
9.5 Bridge Builder Trust
10.19 +0.02
26.5 CoreBond
31.8 Dimensional Fds
28.0
21.2
5.0
14.0
4.0
4.3
10.8
5GlbFxdInc
EmgMktVa
EmMktCorEq
IntlCoreEq
IntlVal
IntSmCo
IntSmVa
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
12.0
11.1
6.4
3.7 Dodge & Cox
Balanced
3.9 GblStock
Income
Net YTD
NAV Chg %Ret
11.02 +0.01
29.63 -0.20
22.11 -0.12
13.97 -0.12
19.66 -0.15
20.98 -0.23
22.79 -0.27
21.83 -0.11
20.68 -0.10
35.45 -0.20
37.64 -0.21
24.50 -0.13
38.62 -0.12
2.2
25.4
29.2
22.0
20.0
22.6
20.5
14.6
12.4
5.5
1.1
2.9
11.7
107.97 -0.17 7.9
13.67 -0.03 14.8
13.82 +0.01 3.9
company, which they originally
called Rack Habit, in October
2010, it says.
Ms. Flynn, the wife of Ms.
Lake’s college classmate and a
former J. Crew buyer, served as
chief merchandising officer. She
worked on the startup full-time
while Ms. Lake attended Harvard Business School full-time,
according to the complaint.
After raising $750,000 in
seed funding in 2011 from
Baseline Ventures, the cofounders moved the company
to San Francisco and changed
its name. Trouble arose in the
summer of 2012 when Ms.
Lake allegedly asked Ms. Flynn
to give up some of her ownerNet YTD
NAV Chg %Ret Fund
Intl Stk
45.50 -0.10 19.4
198.68 -0.56 10.9
Stock
DoubleLine Funds
NA
... NA
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.38 -0.16 32.3
Federated Instl
StraValDivIS 6.38 -0.04 11.1
Fidelity
500IdxInst 89.88 -0.48 16.5
500IdxInstPrem 89.88 -0.48 16.6
500IdxPrem 89.88 -0.47 16.5
ExtMktIdxPrem r 61.74 -0.28 12.5
IntlIdxPrem r 42.63 -0.28 20.8
SAIUSLgCpIndxFd 13.78 -0.07 16.5
TMktIdxF r 74.42 -0.39 15.8
TMktIdxPrem 74.41 -0.38 15.8
USBdIdxInstPrem 11.60 +0.02 3.2
Fidelity Advisor I
NwInsghtI 33.16 -0.16 24.2
Fidelity Freedom
16.63 -0.03 12.7
FF2020
FF2025
14.38 -0.04 13.6
17.99 -0.06 15.9
FF2030
Freedom2020 K 16.63 -0.04 NS
Freedom2025 K 14.38 -0.04 NS
Freedom2030 K 18.00 -0.05 NS
Freedom2035 K 15.08 -0.06 NS
Freedom2040 K 10.59 -0.05 NS
Fidelity Invest
23.56 -0.05 13.5
Balanc
87.21 -0.50 32.1
BluCh
126.05 -0.62 28.9
Contra
ContraK
126.05 -0.63 29.0
10.17 -0.04 9.4
CpInc r
DivIntl
40.88 -0.22 22.8
181.67 -1.16 32.8
GroCo
Net YTD
NAV Chg %Ret Fund
GrowCoK 181.63 -1.16
7.93 +0.02
InvGB
11.29 +0.02
InvGrBd
52.19 -0.31
LowP r
LowPriStkK r 52.15 -0.31
105.11 -0.57
MagIn
108.21 -0.49
OTC
23.03 -0.08
Puritn
SrsEmrgMkt 21.28 -0.02
SrsGroCoRetail 17.83 -0.12
SrsIntlGrw 16.06 -0.11
10.69 -0.07
SrsIntlVal
TotalBond 10.66 +0.01
Fidelity Selects
211.04 +0.38
First Eagle Funds
60.04 -0.26
GlbA
FPA Funds
FPACres
34.65 -0.07
FrankTemp/Frank Adv
NA
...
IncomeAdv
FrankTemp/Franklin A
7.48
...
CA TF A p
Fed TF A p 11.98 +0.01
NA
...
IncomeA p
RisDv A p 60.10 -0.50
FrankTemp/Franklin C
Income C t
NA
...
FrankTemp/Temp A
NA
...
GlBond A p
NA
...
Growth A p
FrankTemp/Temp Adv
GlBondAdv p NA
...
Harbor Funds
CapApInst 75.50 -0.50
68.87 -0.33
IntlInst r
Harding Loevner
Biotech r
ship to distribute the shares to
new hires, according to the
lawsuit.
During the company’s first
year, Ms. Flynn owned a substantial amount of the company. Since 2011, Stitch Fix has
received $42.5 million in venture funding and its shares
have been split to distribute
equity to new investors. After
the IPO, there will be about 96
million shares outstanding, including a special class of
shares with 10 votes apiece
held by current investors and
Ms. Lake.
In the court documents, Ms.
Flynn accused her partner of
seeking to preserve her own
32.9
3.6
4.1
13.9
14.0
21.8
35.8
15.4
35.5
33.5
25.5
16.7
3.8
21.3
10.7
7.5
NA
5.6
3.3
NA
15.1
NA
NA
NA
NA
33.3
17.9
IntlEq
Net YTD
NAV Chg %Ret Fund
NA
...
Invesco Funds A
11.18 -0.02
John Hancock Class 1
15.86 -0.05
LSBalncd
LSGwth
17.00 -0.06
John Hancock Instl
DispValMCI 23.81 -0.11
JPMorgan Funds
MdCpVal L 39.56 -0.17
JPMorgan R Class
11.65 +0.02
CoreBond
Lazard Instl
EmgMktEq 19.27 -0.13
Loomis Sayles Fds
14.10 -0.02
LSBondI
Lord Abbett A
...
ShtDurIncmA p 4.26
Lord Abbett F
ShtDurIncm 4.26
...
Metropolitan West
TotRetBd
10.67 +0.02
TotRetBdI 10.66 +0.01
TRBdPlan 10.04 +0.02
MFS Funds Class I
40.18 -0.16
ValueI
MFS Funds Instl
25.17 -0.15
IntlEq
Mutual Series
NA
...
GlbDiscA
Oakmark Funds Invest
33.72 -0.05
EqtyInc r
83.94 -0.33
Oakmark
OakmrkInt 28.37 -0.20
Old Westbury Fds
LrgCpStr
14.75 -0.09
Oppenheimer Y
EqIncA
NA DevMktY
Net YTD
NAV Chg %Ret Fund
41.66 -0.21
42.55 -0.25
IntGrowY
7.0 Parnassus Fds
43.90 -0.26
ParnEqFd
12.3 PIMCO Fds Instl
15.6 AllAsset
NA
...
10.28 +0.02
TotRt
10.9 PIMCO Funds A
IncomeFd
NA
...
8.7 PIMCO Funds D
NA
...
IncomeFd
3.7 PIMCO Funds Instl
NA
...
IncomeFd
21.3 PIMCO Funds P
IncomeP
NA
...
6.4 Price Funds
96.72 -0.44
BlChip
2.1 CapApp
29.58 -0.09
EqInc
34.52 -0.12
2.4 EqIndex
69.01 -0.36
69.76 -0.37
Growth
2.9 HelSci
72.90 -0.21
3.1 InstlCapG
39.35 -0.20
3.3 IntlStk
19.05 -0.07
14.98 -0.09
IntlValEq
12.1 MCapGro
91.11 -0.46
31.16 -0.16
MCapVal
24.2 N Horiz
54.51 -0.25
N Inc
9.49 +0.01
NA OverS SF r 11.19 -0.07
23.09 -0.06
R2020
10.8 R2025
17.80 -0.05
15.8 R2030
26.21 -0.09
25.0 R2035
19.15 -0.07
27.51 -0.11
R2040
15.0 Value
38.57 -0.13
PRIMECAP Odyssey Fds
Net YTD
NAV Chg %Ret Fund
36.01 +0.02
30.3 Growth r
22.7 Principal Investors
DivIntlInst 13.73 -0.08
12.7 Prudential Cl Z & I
14.52 +0.03
TRBdZ
NA Schwab Funds
40.12 -0.21
4.9 S&P Sel
TIAA/CREF Funds
19.21 -0.10
NA EqIdxInst
IntlEqIdxInst 20.00 -0.13
Tweedy
Browne
Fds
NA
28.08 -0.12
GblValue
NA VANGUARD ADMIRAL
500Adml 237.32 -1.26
33.94 -0.07
NA BalAdml
CAITAdml 11.81 +0.01
33.2 CapOpAdml r153.67 -0.36
36.58 -0.24
12.9 EMAdmr
11.2 EqIncAdml 75.80 -0.36
16.3 ExtndAdml 81.10 -0.37
31.0 GNMAAdml 10.51 +0.02
23.4 GrwthAdml 70.36 -0.44
34.6 HlthCareAdml r 87.68 -0.16
24.6 HYCorAdml r 5.87 -0.02
25.87 +0.08
16.9 InfProAd
20.9 IntlGrAdml 93.63 -0.35
7.2 ITBondAdml 11.41 +0.03
25.9 ITIGradeAdml 9.79 +0.01
3.6 LTGradeAdml 10.63 +0.07
23.4 MidCpAdml 184.04 -0.92
...
13.1 MuHYAdml 11.42
14.8 MuIntAdml 14.17 +0.01
16.3 MuLTAdml 11.69 +0.01
...
17.6 MuLtdAdml 10.94
...
18.5 MuShtAdml 15.76
14.6 PrmcpAdml r134.97 -0.38
REITAdml r 119.50 -1.18
Net YTD
NAV Chg %Ret Fund
25.7 SmCapAdml 67.69 -0.36
STBondAdml 10.42 +0.01
24.8 STIGradeAdml 10.66
...
TotBdAdml 10.77 +0.02
5.8 TotIntBdIdxAdm 21.95 +0.03
TotIntlAdmIdx r 29.55 -0.20
16.6 TotStAdml 64.09 -0.33
13.99 -0.09
TxMIn r
15.8 ValAdml
39.39 -0.17
20.8 WdsrllAdml 68.14 -0.26
WellsIAdml 65.14 -0.03
12.1 WelltnAdml 73.41 -0.10
WndsrAdml 78.48 -0.27
16.5 VANGUARD FDS
10.7
26.24 -0.13
DivdGro
4.8
HlthCare r 207.84 -0.37
23.7
INSTTRF2020 22.41 -0.06
25.3
INSTTRF2025 22.66 -0.07
13.1
INSTTRF2030 22.83 -0.08
12.5
2.1 INSTTRF2035 23.01 -0.09
23.9 INSTTRF2040 23.18 -0.11
15.7 INSTTRF2045 23.31 -0.12
38.91 -0.21
5.5 IntlVal
32.89 -0.14
2.5 LifeGro
26.78 -0.07
39.1 LifeMod
PrmcpCor
26.68 -0.05
3.8
32.90 -0.07
4.1 SelValu r
27.03 -0.04
9.6 STAR
10.66
...
14.1 STIGrade
7.2 TgtRe2015 15.86 -0.03
4.6 TgtRe2020 31.44 -0.08
6.0 TgtRe2025 18.42 -0.05
2.4 TgtRe2030 33.24 -0.12
1.2 TgtRe2035 20.40 -0.09
24.0 TgtRe2040 35.11 -0.16
5.0 TgtRe2045 22.04 -0.11
10.6
1.3
2.1
3.4
2.2
22.3
15.8
21.5
10.7
10.4
7.9
10.9
14.3
13.7
15.6
11.3
12.7
13.9
15.1
16.2
16.7
22.6
15.1
12.0
20.3
14.3
14.9
2.0
9.3
11.3
12.7
13.8
15.0
16.2
16.7
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg %Ret
35.46 -0.18
13.54 -0.01
10.98 +0.02
26.89 -0.01
42.51 -0.05
38.39 -0.15
VANGUARD INDEX FDS
237.28 -1.27
500
ExtndIstPl 200.13 -0.91
SmValAdml 54.41 -0.25
10.73 +0.02
TotBd2
17.66 -0.12
TotIntl
64.06 -0.33
TotSt
VANGUARD INSTL FDS
BalInst
33.94 -0.08
DevMktsIndInst 14.01 -0.09
DevMktsInxInst 21.90 -0.14
81.10 -0.36
ExtndInst
GrwthInst 70.37 -0.43
10.54 +0.03
InPrSeIn
234.14 -1.25
InstIdx
234.16 -1.25
InstPlus
InstTStPlus 57.49 -0.30
MidCpInst 40.66 -0.20
MidCpIstPl 200.51 -1.00
SmCapInst 67.69 -0.36
...
STIGradeInst 10.66
TotBdInst
10.77 +0.02
TotBdInst2 10.73 +0.02
TotBdInstPl 10.77 +0.02
TotIntBdIdxInst 32.93 +0.04
TotIntlInstIdx r118.17 -0.79
TotItlInstPlId r118.19 -0.79
TotStInst
64.10 -0.33
39.39 -0.17
ValueInst
Western Asset
...
CorePlusBdI NA
16.7
6.9
2.2
7.8
10.9
10.3
16.4
12.5
6.0
3.3
22.2
15.7
10.7
21.6
21.6
12.5
23.9
2.5
16.5
16.6
15.8
14.1
14.1
10.6
2.2
3.4
3.3
3.4
2.2
22.3
22.3
15.8
10.8
NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | B9
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23271.28 t 138.19, or 0.59%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 20.43 20.57
P/E estimate *
19.22 17.66
Dividend yield
2.23
2.49
All-time high 23563.36, 11/08/17
Nasdaq Composite Index
Last
2564.62 t 14.25, or 0.55%
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
6706.21 t 31.66, or 0.47%
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
Session high
2580
6750
23000
2550
6650
22500
2520
6550
22000
2490
6450
21500
2460
6350
21000
2430
UP
Close
t
DOWN
Session open
23500
65-day moving average
Open
t
Close
65-day moving average
65-day moving average
Session low
6250
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
Utility Average
Total Stock Market
Barron's 400
-0.59
23563.36 18867.93
23.3
17.8
9.7
-0.51
10038.13
8749.08
7.9
4.4
1.4
Most-active issues in late trading
-7.25
-0.94
774.47
626.66
21.7
16.3
9.4
26604.41 26430.06 26521.20 -142.82
678.71
671.88
676.86 -2.51
-0.54
26830.60 22616.13
691.56
575.45
17.3
17.6
13.9
12.5
7.8
7.8
Net chg
% chg
23344.99 23242.75 23271.28 -138.19
9473.30
9420.16
778.80
766.76
Nasdaq Stock Market
Nasdaq Composite
6725.32
Nasdaq 100
6276.80
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
767.22
6667.31
6227.99
-0.37
6706.21 -31.66
6258.36 -35.28
6789.12
6345.81
-0.47
-0.56
5251.11
4734.10
26.7
30.6
24.6
28.7
12.7
14.0
Standard & Poor's
500 Index
2572.84
2557.45
2564.62 -14.25
-0.55
2594.38
2176.94
17.8
14.6
7.9
MidCap 400
SmallCap 600
1824.16
893.33
1807.15
884.25
1818.05
889.94
-8.75
-4.80
-0.48
-0.54
1843.36
918.72
1595.53
795.68
13.9
11.8
9.5
6.2
8.3
9.4
Other Indexes
Russell 2000
1470.90
1454.17
1464.09
-7.16
-0.49
1512.09
1302.20
12.4
7.9
7.6
NYSE Composite
Company
12250.92 12178.89 12220.34 -59.77
530.33
533.41
-2.49
NYSE Arca Biotech
4092.57
3997.18
4075.22
29.97
SPDR S&P 500
SPY
NYSE Arca Pharma
12430.52 10699.43
-0.49
-0.46
0.74
14.2
10.5
3.9
545.98
492.69
8.3
5.4
2.4
4304.77
3075.02
21.3
32.5
7.8
37.13
…
unch.
37.49
37.10
23.01
…
unch.
23.14
23.00
Cisco Systems
CSCO
3,210.9
35.90
1.79
5.25
36.20
33.67
Groupon
GRPN
2,607.3
5.22
…
unch.
5.33
5.22
Dynegy
DYN
2,514.0
12.39
…
unch.
12.39
12.36
Wells Fargo
WFC
2,513.5
53.75
…
unch.
53.98
53.63
VanEck Vectors Jr Gold GDXJ
2,296.7
31.86
-0.02
-0.06
31.88
31.85
Percentage gainers…
10.5
34.37
5.67
19.76
35.00
28.24
RH
RH
576.9
96.35
13.05
15.67
97.25
82.90
NetApp
NTAP
541.8
49.80
3.98
8.69
50.00
45.78
Cellectis ADR
CLLS
5.9
24.78
1.45
6.22
24.78
23.20
76.9
33.00
1.80
5.77
33.00
31.20
Fidelity Guaranty Life FGL
531.45
-1.07
560.52
463.78
10.1
10.4
-0.2
...And losers
0.38
0.39
102.31
83.90
18.1
8.0
PHLX§ Gold/Silver
99.11
10.9
Bellicum Pharmaceuticals BLCM
80.19
79.58
80.04
0.04
0.05
96.72
73.03
-1.8
1.5
4.2
130.42
-2.40
-1.81
192.66
117.79
-20.4
1293.20 -11.80
1.54
13.13
-0.90
1321.13
16.04
13.29
836.79
9.14
50.8
-4.3
131.18
128.87
1283.71
12.33
Philadelphia Stock Exchange
42.7
-6.5
26.1
-0.5
L Brands
LB
6.9
9.11
-0.39
-4.11
9.50
9.11
852.9
47.31
-1.95
-3.96
50.00
45.62
31.2
8.41
-0.25
-2.89
8.66
8.41
Otonomy
OTIC
7.3
5.05
-0.15
-2.88
5.20
5.05
AK Steel
AKS
77.6
4.26
-0.11
-2.52
4.38
4.26
Banco Sant Brasil ADR BSBR
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Region/Country Index
Close
Percentage Gainers...
Net chg
2929.00
380.93
255.85
–13.56
–2.13
–1.47
DJ Americas
615.69
Sao Paulo Bovespa 70826.59
S&P/TSX Comp
15878.48
S&P/BMV IPC
47690.80
Santiago IPSA
3999.86
–3.22
…
–34.65
–182.85
–26.46
The Global Dow
DJ Global Index
DJ Global ex U.S.
Americas
Brazil
Canada
Mexico
Chile
-29.0 -18.8
381.96
385.53
3963.83
5301.25
12976.37
1400.05
22158.88
538.49
1116.53
10013.90
577.73
9089.55
7372.61
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5934.20
Shanghai Composite 3402.52
Hang Seng
28851.69
S&P BSE Sensex
32760.44
Nikkei Stock Avg
22028.32
Straits Times
3368.70
Kospi
2518.25
Weighted
10630.65
Latest
% chg
YTD
% chg
–0.46
–0.55
–0.57
15.7
16.8
19.6
–0.52
Closed
13.9
17.6
3.9
4.5
24.1
–0.22
–0.38
–0.66
–0.49
–1.90
–0.40
–1.55
–20.80 –0.52
–0.27
–14.33
–0.44
–57.11
–11.77 –0.83
–138.20 –0.62
–3.24 –0.60
–20.33 –1.79
0.24
23.50
–0.24
–1.39
–0.45
–40.93
–41.81 –0.56
5.7
10.1
9.9
9.0
13.0
–4.8
15.2
11.4
–3.1
7.1
8.1
10.6
3.2
–34.50 –0.58
–27.02 –0.79
–300.43 –1.03
–181.43 –0.55
–351.69 –1.57
–30.39 –0.89
–0.33
–8.39
–56.53 –0.53
4.7
9.6
31.1
23.0
15.2
16.9
24.3
14.9
Company
Symbol
CHF Solutions
SemiLEDS
YY ADR
Yield10 Bioscience
SORL Auto Parts
CHFS
OptimumBank Holdings
Yulong Eco-Materials
Alliqua BioMedical
American Renal Associates
Drive Shack
OPHC
Avid Technology
Verso Cl A
Dicerna Pharmaceuticals
KBS Fashion Group
Sangamo Therapeutics
AVID
16.50 12.73 337.67
6.39 3.59 128.54
YY
111.39 22.16 24.83
YTEN
2.80 0.55 24.44
SORL
7.21 1.22 20.37
LEDS
YECO
ALQA
ARA
DS
VRS
DRNA
KBSF
SGMO
High
52-Week
Low
% chg
576.00 3.60
10.49 1.61
111.52 37.81
9.30 2.18
9.74 2.68
Company
Symbol
-84.9
41.1
150.7
...
73.7
Acorda Therapeutics
OncoCyte
Takung Art
Valeritas Holdings
MACOM Tech Solutions
ACOR
Symbol
General Electric
Bank of America
SPDR S&P 500
Finl Select Sector SPDR
iPath S&P 500 VIX ST Fut
GE
iShares MSCI Emg Markets
ProSharesUltVIXST
Teva Pharmaceutical ADR
Target Corp
Advanced Micro Devices
EEM
BAC
SPY
XLF
VXX
UVXY
TEVA
TGT
AMD
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
1.85
0.50
1.99
9.91
2.41
-39.8
-54.4
-65.7
-49.7
3.7
Achillion Pharm
Ossen Innovation ADR
Highpower International
Netshoes (Cayman)
Affimed
ACHN
6.07
8.99
9.40
5.29
14.65
0.78
1.13
1.14
0.64
1.75
14.74
14.38
13.80
13.76
13.57
6.33
9.01
9.69
18.00
17.06
3.99
3.17
2.42
1.41
2.65
26.2
65.0
170.9
-11.8
253.0
JA Solar Holdings ADR
SandRidge Energy
Presidio
Capricor Therapeutics
Pangaea Logistics Solns
JASO
Volume % chg from Latest Session
(000) 65-day avg Close % chg
143,381
97,573
69,314
64,080
53,899
116.7
51.6
9.1
23.5
68.2
18.26 2.01
26.79 2.10
256.44 -0.50
26.18 0.27
36.51 3.84
47,941
47,321
34,764
34,557
33,263
-0.7
70.6
44.0
422.4
-42.3
45.64 -0.52
17.66 7.62
12.60 7.23
54.16 -9.87
11.07 -0.45
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
52-Week
High
Low
4.00%
3.00
2.00
t
1.00
0.00
D J FMAM J J A S ON
2017
2.88%
800-530-2680
Wednesday
Somerset Savings Bank, SLA
2.88%
Bound Brook, NJ
732-560-1700
Oritani Bank
Twp of Washington, NJ
3.00%
888-674-8264
RTN Federal Credit Union
3.00%
Waltham, MA
781-736-9900
t
5-year Treasury
note yield
Epic Funding
Fort Myers, FL
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
1.41
1.42
Money market, annual yield
0.33
0.33
Five-year CD, annual yield
1.48
1.48
30-year mortgage, fixed†
3.86
3.92
15-year mortgage, fixed†
3.22
3.31
Jumbo mortgages, $424,100-plus† 4.28
4.22
Five-year adj mortgage (ARM)† 3.54
3.45
New-car loan, 48-month
3.02
3.01
HELOC, $30,000
5.06
4.41
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.91 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
l
4.41
1.25
4.25
1.42
0.36
1.49
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.19
-0.10
-0.07
-0.14
0.08
-0.02
...
-0.22
0.05
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
0
–5
0.75
–10
0.00
–15
30
WSJ
.COM
3.03
2.34
4.05
6.00
1.75
-0.66
-0.49
-0.78
-0.96
-0.28
-17.89
-17.31
-16.06
-13.79
-13.58
5.66
3.61
6.00
26.96
2.95
2.95
1.50
2.00
5.70
1.65
-33.4
2.2
50.0
...
-23.9
6.96
16.00
14.10
2.35
4.06
-1.07
-2.43
-2.11
-0.35
-0.60
-13.33
-13.19
-13.02
-12.96
-12.88
8.48 4.42
24.95 14.65
16.90 12.75
4.25 0.63
8.40 2.14
24.7
-35.2
...
-20.3
25.3
NESR
SCAC
BCEI
SD
RESN
SORL
DBGR
ACOR
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
606
502
918
3,960
4,376
3750
3187
2614
2435
2343
9.72 0.00
9.90 0.00
9.85 -0.51
32.07 4.60
16.00 -13.19
9.89 9.70
9.97 9.39
14.29 9.82
377.17 23.33
24.95 14.65
410
867
7,069
184
9,796
2141
1520
1488
1296
1169
49.83 0.28
4.98 -1.39
7.21 20.37
28.26 -0.70
17.00 -39.72
50.58 48.29
5.55 3.82
9.74 2.68
29.45 23.06
33.00 13.60
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
s Euro
s Yen
Country/currency
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Europe
Argentina peso
.0571 17.5163 10.4
Brazil real
.3018 3.3133 1.8
Canada dollar
.7834 1.2766 –5.0
Chile peso
.001580 632.80 –5.5
Ecuador US dollar
1
1 unch
Mexico peso
.0519 19.2494 –7.2
Uruguay peso
.03406 29.3600 0.03
Venezuela b. fuerte .098775 10.1241 1.3
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
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.143
2.117
2.237
1.818
1.763 2.032
2.335
3.157
2.650
5.835
2.890
2.024
2.325
3.095
2.600
5.370
2.840
1.926
2.609
3.390
2.790
6.285
3.120
2.516
2.058
2.879
2.380
4.948
2.650
1.736
1.259
4.473
2.891
7.627
1.845
4.227
797.095
5.635
5.632
6.290
5.279
8.932 5.650
1.837
3.827
2.395
3.619
2.076
2.757
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$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Australian dollar
.7588 1.3179
China yuan
.1510 6.6232
Hong Kong dollar
.1281 7.8059
India rupee
.01531 65.309
Indonesia rupiah .0000738 13542
Japan yen
.008860 112.87
Kazakhstan tenge .003004 332.94
Macau pataca
.1252 7.9898
Malaysia ringgit
.2392 4.1802
New Zealand dollar
.6877 1.4541
Pakistan rupee
.00950 105.305
Philippines peso
.0197 50.823
Singapore dollar
.7371 1.3566
South Korea won .0009044 1105.70
Sri Lanka rupee
.0065015 153.81
Taiwan dollar
.03326 30.070
Thailand baht
.03029 33.010
Vietnam dong
.00004403 22711
Commodities
–5.1
–4.6
0.6
–3.9
0.1
–3.5
–0.2
0.9
–6.8
0.7
0.9
2.5
–6.3
–8.5
3.6
–7.3
–7.8
–0.3
.04598 21.749 –15.3
.1584 6.3124 –10.7
1.1791 .8481 –10.8
.003776 264.81 –10.0
.009672 103.39 –8.5
.1213 8.2431 –4.6
.2780 3.5975 –14.1
.01660 60.226 –1.7
.1186 8.4297 –7.4
1.0116 .9885 –3.0
.2577 3.8811 10.1
.0377 26.4955 –2.2
1.3170 .7593 –6.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6473 .3778 0.2
.0566 17.6600 –2.6
.2834 3.5289 –8.3
3.3036 .3027 –1.0
2.5963 .3852 0.1
.2745 3.643 0.1
.2666 3.7504 –0.01
.0695 14.3933 5.1
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.31 –0.07–0.08 –6.06
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Wednesday
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
-16.7
-9.7
-49.4
-92.9
-32.1
* 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
5 WSJ Dollar index
1.50
52-Week
Low
% chg
Ranked by change from 65-day average*
VBND
1463.435
EMBI Global, J.P. Morgan
PANL
Vident Core US Bd Strat
Resonant Inc.
SORL Auto Parts
Xtrackers MSCI Germany
Acorda Therapeutics
10-yr Treasury, Ryan ALM 1735.999
DJ Corporate
377.834
Aggregate, Barclays Capital 1940.720
High Yield 100, Merrill Lynch 2819.411
Fixed-Rate MBS, Barclays 1987.630
Muni Master, Merrill
521.810
Treasury, Ryan ALM
CAPR
46.87
255.00
39.41
79.33
15.65
10%
2.25
Close
PSDO
TPGH
Corporate Borrowing Rates and Yields
Bond total return index
SD
TPG Pace Holdings Cl A
Natl Energy Svcs Reunited
Saban Capital Acquisition
Bonanza Creek Energy
SandRidge Energy
33.94
14.56
10.85
48.56
7.07
33.00 13.60
7.95 3.60
10.50 2.15
48.00 2.00
65.99 29.98
AFMD
32.38 17.46
27.98 19.68
259.35 217.42
26.93 21.80
122.24 33.11
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
* 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.
17.00 -11.20 -39.72
4.65 -1.25 -21.19
3.01 -0.79 -20.73
2.43 -0.57 -18.93
30.02 -6.59 -18.00
NETS
Symbol
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
Third Federal Savings and Loan
2.69%
Cleveland, OH
866-627-1785
NYSE Arca
High
HPJ
Company
Forex Race
3.75%
t
5-year adjustablerate mortgage
t (ARM)
Nasdaq
Total volume*1,878,772,504 245,820,651
Adv. volume* 838,045,227 87,106,955
Decl. volume*1,010,530,038 149,889,837
Issues traded
3,069
1,318
Advances
1,128
344
Declines
1,795
950
Unchanged
146
24
New highs
52
9
New lows
101
51
Closing tick
369
42
Closing Arms†
0.76
0.60
Block trades*
7,085
1,226
Latest Session
Close Net chg % chg
OSN
Volume Movers
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.54%
MTSI
5.94
9.60
8.48
25.42
4.80
notes and bonds
Bankrate.com avg†:
VLRX
19.32
18.65
17.65
15.65
15.33
s
U.S. consumer rates
TKAT
0.40
0.65
0.36
1.56
0.63
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
OCX
2.47
4.11
2.40
11.53
4.74
Most Active Stocks
Company
Total volume* 848,116,064 11,215,970
Adv. volume* 324,521,565 4,807,166
Decl. volume* 508,534,055 6,259,955
Issues traded
3,078
329
Advances
1,046
133
Declines
1,910
183
Unchanged
122
13
New highs
84
2
New lows
150
12
Closing tick
198
8
Closing Arms†
0.81
0.94
Block trades*
6,828
128
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
Interest rate
Low
-0.004 257.82 256.39
4,801.0
97.54
1298.95
14.51
-0.01
5,075.3
529.52
World
11,154.0 256.43
After Hours
% chg
High
INVH
99.49
PHLX§ Semiconductor
CBOE Volatility
Net chg
Invitation Homes
532.88
-0.20
Last
NYSE NYSE Amer.
Starwood Waypoint Homes SFR
KBW Bank
PHLX§ Oil Service
Volume
(000)
Symbol
SMART Global Holdings SGH
535.90
Value Line
Volume, Advancers, Decliners
9440.87 -48.31
Latest
Close
Low
Dow Jones
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.
High
Industrial Average
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
607.45
-0.88
188.64
55.33
3.080
1276.50
-0.42
-0.37
-0.022
-5.00
-0.14
616.58
532.01
-0.22 195.14
57.35
-0.66
3.93
-0.71
-0.39 1346.00
166.50
42.53
2.56
1127.80
% Chg
13.41
YTD
% chg
7.09
3.45 -2.01
3.00
21.42
11.43 -17.29
4.34 11.00
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.
B10 | Thursday, November 16, 2017
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Settle
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.0505
3.0575
3.0325
3.0490 –0.0110
Nov
Dec
3.0525
3.0645
3.0340
3.0545 –0.0105
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
1281.40 1284.70
1275.90 1276.50 –5.00
Dec
1280.70 1290.00
1276.50 1277.70 –5.20
Feb'18
1285.00 1294.30
1281.00 1282.10 –5.20
April
1289.70 1298.50
1285.30 1286.30 –5.30
June
1292.10 1301.90
1289.80 1290.60 –5.30
Dec
1308.50 1315.00
1302.70 1303.40 –5.40
Palladium (NYM) - 50 troy oz.; $ per troy oz.
986.10
989.30
973.55
985.10 –0.45
Dec
March'18 982.95 983.55
968.55
979.75
…
June
970.80
970.80
966.75
973.75
…
Platinum (NYM)-50 troy oz.; $ per troy oz.
928.20
928.20
926.40
929.90
5.80
Nov
Jan'18
927.80
941.50
927.50
933.10
5.80
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.940
16.940
16.940
16.950 –0.102
Nov
Dec
17.025
17.205
16.940
16.971 –0.102
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
55.06
55.56
54.88
55.33 –0.37
Dec
Jan'18
55.25
55.74
55.08
55.52 –0.37
Feb
55.34
55.87
55.24
55.66 –0.37
March
55.51
55.98
55.36
55.79 –0.37
June
55.44
55.90
55.29
55.76 –0.31
Dec
53.97
54.35
53.84
54.25 –0.29
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8888
1.9144
1.8855
1.9087 .0017
Dec
Jan'18
1.8959
1.9178
1.8901
1.9120 .0009
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7348
1.7520
1.7262
1.7388 –.0224
Dec
Jan'18
1.7274
1.7446
1.7209
1.7330 –.0201
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
3.078
3.153
3.052
3.080 –.022
Dec
Jan'18
3.184
3.244
3.151
3.179 –.024
Feb
3.181
3.244
3.154
3.180 –.025
March
3.140
3.200
3.115
3.140 –.025
April
2.931
2.966
2.927
2.940 –.007
May
2.919
2.945
2.909
2.920 –.008
127.15
130.45
128.10
131.45
125.65
128.95
126.75
130.10
–.30 30,587
–.35 115,208
March
May
15.05
15.03
15.12
15.11
14.90
14.92
15.09
15.09
–.01 398,348
–.01 135,387
March
27.29
27.29
27.29
27.29
–.01
Dec
March'18
68.63
68.65
68.91
68.90
68.59
68.62
68.81
68.84
…
160.25
163.00
163.00
Dec
March'18
Open
interest
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
393
103,059
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
71
279,265
179,972
20,508
20,591
11,183
Cotton (ICE-US)-50,000 lbs.; cents per lb.
… s
163.80
…
161.40
2,822
.21 34,846
.19 134,922
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Dec
Jan'18
27,224
8,205
405
Open
interest
Chg
1.60
1.60
6,722
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
153-020 154-100
153-010 154-000 1-04.0 752,627
Dec
March'18 151-310 153-050
151-300 152-280 1-04.0 49,597
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
124-255 125-070
124-245 125-015
10.0 3,227,296
Dec
March'18 124-160 124-295
124-155 124-245
10.5 105,203
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
116-310 117-052
116-305 117-015
3.5 3,125,226
Dec
March'18 116-237 116-305
116-237 116-270
4.0 104,728
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-172 107-190
107-167 107-172
.5 1,755,213
Dec
March'18 107-125 107-140
107-117 107-122
.2 91,640
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.845
98.845
98.843
98.843
… 206,018
Nov
Jan'18
98.615
98.625
t 98.610
98.610 –.005 348,018
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
101.266 101.375
101.000 101.234
.453 28,857
Dec
1 Month Libor (CME)-$3,000,000; pts of 100%
...
...
... 98.5400
…
2,264
Dec
Eurodollar (CME)-$1,000,000; pts of 100%
98.4700 98.4750
98.4650 98.4675
… 1,725,215
Dec
March'18 98.3000 98.3250
98.3000 98.3100 .0100 1,341,577
June
98.1850 98.2050
98.1750 98.1850 .0100 1,275,980
Dec
98.0250 98.0600
98.0200 98.0350 .0200 1,652,722
4
70,595
2
107,243
240,083
542,284
183,814
285,747
233,869
263,911
88,196
113,341
93,425
157,903
116,706
297,668
104,224
180,544
123,566
93,227
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Agriculture Futures
Dec
March'18
.8826
.8875
.8903
.8950
.8823
.8875
.8870
.8918
.0040 276,026
.0040
4,730
Dec
March'18
.7854
.7858
.7869
.7877
.7822
.7831
.7835 –.0024 136,720
.7844 –.0023
3,258
Dec
March'18
1.3172
1.3188
1.3225
1.3261
1.3142
1.3186
1.3176
1.3218
Dec
March'18
1.0127
1.0197
1.0176
1.0248
1.0110
1.0184
1.0134
1.0207
.7627
.7584
.7589
.7597
.7586
.7629
.7614
.7606
.7610
.7610
.7570
.7572
.7570
.7568
.7570
.7581
.7579
.7578
.7577
.7574
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Corn (CBT)-5,000 bu.; cents per bu.
337.25
339.00
t 337.00
338.25
.75 568,664
Dec
March'18 350.25 351.75
t 350.00
351.00
.50 573,029
Oats (CBT)-5,000 bu.; cents per bu.
276.25
277.50
265.25
269.25 –7.00
3,721
Dec
March'18 287.50 288.50
276.25
280.25 –6.00
3,776
Soybeans (CBT)-5,000 bu.; cents per bu.
969.00
978.00
968.00
976.25
8.50 322,009
Jan
March
980.00
988.75
979.00
987.25
8.50 141,771
Soybean Meal (CBT)-100 tons; $ per ton.
310.60
313.30
310.10
311.30
1.00 79,496
Dec
Jan'18
312.80
315.30
312.20
313.40
1.10 113,178
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
34.04
34.77
34.01
34.75
.74 111,875
Dec
Jan'18
34.16
34.91
34.16
34.88
.72 127,799
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1153.00 1209.50
1152.50 1208.50 59.00
9,639
Jan
March
1196.50 1236.00
1196.00 1236.50 58.50
1,144
Wheat (CBT)-5,000 bu.; cents per bu.
427.75
428.25
418.00
420.00 –8.00 158,817
Dec
March'18 444.75 445.25
435.75
437.75 –7.50 221,844
Wheat (KC)-5,000 bu.; cents per bu.
428.00
428.50
416.50
417.75 –10.25 81,871
Dec
March'18 444.75 445.75
433.75
435.25 –10.00 145,040
Wheat (MPLS)-5,000 bu.; cents per bu.
629.00
631.75
623.00
624.75 –4.25 27,465
Dec
March'18 643.25 645.75
637.25
639.25 –3.75 31,830
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
157.250 158.075
157.200 158.000
.375
3,557
Nov
Jan'18
153.575 154.400
152.750 154.250
.350 28,527
Cattle-Live (CME)-40,000 lbs.; cents per lb.
119.500 120.775
119.025 120.200
.700 68,319
Dec
Feb'18
124.925 126.350
124.350 125.750
.600 151,682
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
60.275
61.225
59.250
61.125 1.150 53,878
Dec
Feb'18
67.500
67.825
66.250
67.450 –.050 93,291
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
465.00
500.00 s
465.00
500.00 27.00
13
Nov
Jan'18
450.70
454.00
444.50
449.40 –3.10
5,655
Milk (CME)-200,000 lbs., cents per lb.
16.84
16.85
16.81
16.84
.02
4,325
Nov
Dec
15.77
15.77
15.61
15.73
–.03
4,511
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,143
2,162
2,082
2,133
–16
2,692
Dec
March'18
2,155
2,162
2,110
2,129
–26 139,998
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
… 170,252
…
3,486
Australian Dollar (CME)-AUD 100,000; $ per AUD
Dec
Jan'18
Feb
March
June
t
t
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
.05183
.05204
March'18 .05118 .05125
Euro (CME)-€125,000; $ per €
Dec
1.1817
1.1882
March'18 1.1883 1.1950
.0008
.0009
81,356
265
–.0050 123,607
–.0050
626
–.0050
522
–.0049
1,026
–.0050
247
.05131
.05054
.05150 –.00041 177,093
.05072 –.00041
616
1.1806
1.1875
1.1813 –.0002 452,815
1.1883 –.0002
6,848
Index Futures
Dec
March'18
23366
23348
23366
23348
23205
23201
23262
23254
S&P 500 Index (CME)-$250 x index
Cash Prices
Wednesday, November 15, 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.
Wednesday
–113 156,513
–114
1,762
Dec
2572.00 2572.30
2556.70 2565.10
March'18 2569.50 2569.50
2557.80 2565.60
Mini S&P 500 (CME)-$50 x index
Dec
2576.75 2577.00
2555.50 2565.00
March'18 2576.75 2576.75
2556.25 2565.50
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1824.90 1825.70
1804.80 1817.60
Mini Nasdaq 100 (CME)-$20 x index
Dec
6293.5
6294.8
6230.8
6266.3
March'18 6309.3 6310.0
6247.0
6282.3
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1466.90 1470.70
1453.10 1463.80
March'18 1464.90 1467.00
1455.00 1464.60
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1421.30 1424.60
1416.00 1421.10
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
93.77
93.80
93.31
93.73
March'18
93.45
93.47
93.03
93.42
–12.80
–12.90
62,906
4,933
–13.00 3,176,001
–13.00 83,967
–9.00
93,551
–27.3 283,784
–27.5
2,383
–6.80
–6.80
68,121
82
–6.40
273
…
–.01
42,957
2,706
Source: SIX Financial Information
Expected Previous
Current change
week
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
Natural gas (bcf)
4-week
avg
1,257 1,341
1,264
1,191
1,259,766
...
458,997
210,431
21,143
43
21,100
189,288
-1,400
...
-1,100
...
...
...
457
210
22
0
22
187
490
222
25
0
25
197
457
212
22
0
22
191
3,790
...
4
4
4
5-year
avg
Metals
40,388
124,763
9,831
114,932
34,450
294,560
...
-500
...
...
...
...
Net crude, petroleum
products, incl. SPR
1,928,966
40
126
10
115
33
293
...
43
149
15
134
41
276
1,927 2,036
41
127
11
117
33
295
Year
ago
4-week
avg
5-year
avg
9,981
...
9,550 10,907
9,745
9,488
425
212
35
0
35
178
7,898
349
13
0
13
336
...
...
...
...
...
...
7,377 8,423
405 821
6
36
0
0
6
36
399 784
7,742
382
17
0
17
365
7,644
592
50
0
50
542
4
...
...
...
...
1,934
38
125
19
107
38
250
1,885
...
...
Current
Total petroleum
product
Year
ago
4-week
avg
3,839
...
...
...
...
...
...
213
86
0
86
102
1,196
...
100
169
63
106
290
911
274
129
38
92
146
935
3,696 5,668
2,911
103
148
54
93
174
691
5-year
avg
19,755
...
21,301
19,349
motor gasoline
Kerosene-type
9,172
...
9,496
9,359
9,361
8,907
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,794
4,029
79
1,522
3,160
...
...
...
...
...
1,835
4,486
331
1,322
3,832
1,545
3,944
149
1,140
3,213
1,779
4,038
286
1,200
3,400
1,642
3,960
326
...
...
20,063 19,709
Natural gas,
lower 48 states
Finished
t
4250
3250
t
1250
Five-year average
for each week
250
J F M A M J
2017
J A S O
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCI EAFE SC
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
10.24
92.36
54.20
67.37
26.18
96.47
80.72
70.23
109.43
104.85
122.97
64.25
55.19
61.34
258.18
181.53
73.06
58.63
109.31
94.75
71.02
51.50
12.28
120.45
86.68
114.57
106.81
69.79
38.02
68.61
61.68
0.89 –18.7
–0.43 13.5
4.8
–1.06
–1.13 –10.6
0.27 12.6
–0.55 11.3
–0.28 17.1
–0.57 12.9
1.1
0.10
–0.01 –0.1
0.4
0.13
–0.55 19.8
–0.52 30.0
–0.47 21.5
–0.54 14.8
9.8
–0.46
6.3
–0.54
–0.56 14.3
1.2
0.19
7.0
–0.84
16.0
–0.36
–0.68 13.9
–0.24 10.8
2.8
0.43
0.2
...
3.9
0.07
0.4
0.16
–0.50 17.9
0.74 14.0
–0.48 18.8
–0.69 23.8
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
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
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
45.64
42.90
58.08
306.25
110.83
130.02
142.72
118.60
177.13
145.63
121.05
151.75
199.85
85.51
207.94
148.25
108.39
38.17
114.16
84.12
106.31
126.56
115.73
101.76
152.59
47.05
22.98
36.47
121.41
33.68
61.95
61.28
232.96
–0.52
–0.46
–0.73
0.39
0.14
–0.64
–0.50
–0.37
–0.54
–0.40
–0.30
–0.50
–0.53
–0.50
–0.41
–0.66
–0.31
0.03
0.28
–0.04
0.36
1.09
–0.60
...
–0.47
–0.72
–0.09
–0.08
–0.12
–0.41
–0.43
–0.50
–0.56
30.4
24.0
18.9
15.4
2.4
23.9
14.7
5.9
15.1
8.0
1.8
14.1
11.7
6.3
14.1
21.7
6.9
2.6
0.9
–0.4
1.4
6.2
18.8
0.4
28.8
13.2
–1.6
0.1
10.8
21.7
14.3
15.1
17.9
17.1800
20.6160
17.0150
21.2690
£13.0000
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
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
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
330.87
256.44
92.16
62.88
56.38
22.65
163.23
126.63
154.13
96.79
43.62
43.84
57.27
53.06
136.69
150.07
82.10
84.34
87.40
117.76
148.58
106.00
84.32
235.53
79.47
79.64
141.35
81.72
54.97
55.11
131.69
71.61
101.00
63.97
56.90
31.43
34.8500
0.2500
n.a.
0.3388
0.2650
0.3300
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 11/14
Source: WSJ Market Data Group
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
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.3 U.S. Aggregate
1940.72
Total
return
close
2.650 2.380 2.790
U.S. Corporate Indexes Bloomberg Barclays
1987.63
2.4
Mortgage-Backed
1954.71
1.8
Ginnie Mae (GNMA) 2.850 2.570 3.090
2.890 2.650 3.120
3.250 3.030 3.520
1165.81
2.6
Fannie mae (FNMA) 2.910 2.670 3.120
2614.29
3.6 Intermediate
2.820 2.530 3.010
1794.95
2.6
Freddie Mac (FHLMC) 2.920 2.680 3.130
3836.93
9.2 Long term
4.170 4.100 4.710
521.81
566.08
4.0 Double-A-rated
2.720 2.470 2.870
365.06
3.540 3.340 3.870
410.19
396.77
5.3
U.S. Corporate
5.9
714.91
Triple-B-rated
High Yield Bonds Merrill Lynch
6.0
411.79
7.0
411.54
High Yield Constrained 6.051 5.373 6.705
4.6 Muni Master
2.024 1.736 2.516
7-12 year
2.015 1.744 2.618
6.3
12-22 year
2.432 2.213 3.047
6.9
22-plus year
2.847 2.770 3.622
5.1
Global Government J.P. Morgan†
Triple-C-rated
11.091 9.584 12.994
544.34
1.4
Global Government 1.420 1.300 1.560
High Yield 100
5.835 4.948 6.285
758.07
0.6
Canada
1.990 1.570 2.190
375.00
6.5
Global High Yield Constrained 5.452 4.934 6.334
372.13
0.9
EMU§
1.059 0.933 1.363
305.12
6.3
Europe High Yield Constrained 2.394 1.897 3.814
713.33
1.0
France
0.800 0.710 1.210
Germany
0.450 0.210 0.620
Japan
0.400 0.270 0.460
Netherlands
0.570 0.360 0.760
U.K.
1.610 1.340 1.790
2819.41
5.1
509.35
U.S Agency Bloomberg Barclays
1640.18
2.2
U.S Agency
2.030 1.600 2.050
288.20
1465.51
1.3
10-20 years
1.880 1.400 1.890
562.36
20-plus years
2.910 2.730 3.460
918.71
2.890 2.610 3.090
797.10
8.0
4.6 Yankee
-1.0
0.01
-0.7
0.6
7.9
Emerging Markets ** 5.635 5.279 6.290
† 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
1.500
2.250
Year ago
1.691
2.374
1.501
2.277
1.001
2.221
l
1.842
1.938
1.779
l
2.667
2.803
2.672
France 2 -0.569 s
10 0.738 t
l
-0.577
-0.519
l
0.756
0.668
Germany 2 -0.746 t
10 0.377 t
l
-0.738
-0.724
l
0.399
0.405
Italy 2 -0.229 t
10 1.820 t
l
-0.224
-0.125
0.057
l
1.828
2.065
1.969
Japan 2 -0.186 t
10 0.043 t
l
-0.179
-0.138
-0.188
l
0.052
0.067
Spain 2 -0.341 s
10 1.538 s
l
-0.357
-0.275
-0.130
-202.5
l
1.521
1.580
1.456
-79.7
0.483 t
1.286 t
l
0.489
0.473
0.202
l
1.322
1.373
1.261
l
l
1.793 t
2.601 t
2.750
Australia 2
10
0.750
0.000
0.500
0.050
0.100
0.100
2.750
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
U.S. 2 1.683 t
10 2.335 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
1.750
U.K. 2
4.250
10
15.1
77.8
29.3
45.1
-0.574 -225.3
0.733
-159.7
-226.9
-157.5
-161.7
-148.8
-0.619 -243.0
0.311 -195.8
-242.9
-161.9
-197.5
-191.0
-191.3
-191.5
-94.3
-51.5
-54.6
-25.2
-187.0
-187.1
-118.9
10.9
26.7
0.001 -229.2
-232.2
-222.0
-204.8
-113.1
-85.3
-76.5
-120.0
-120.2
-79.9
-104.9
-105.2
-96.0
Source: Tullett Prebon
in that same company’s share price.
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Wednesday, November 15, 2017
Closing Chg YTD
Symbol Price (%) (%)
n.a.
93
3.1050
93.1
483.9
225
95
213
3.0175
368.00
24.00
7.5138
Investment-grade spreads that tightened the most…
2250
Largest 100 exchange-traded funds, latest session
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
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6150
0.6806
*79.60
62.000
n.a.
191.11
173.42
0.8612
2.2575
170.00
171.50
74.50
2462
1.2479
1.4393
1.2750
15.65
0.77
64.30
n.a.
0.8779
119.00
170.88
Corporate Debt
Billions of cubic feet; weekly totals
N D
1288.84
1385.50
1282.20
1423.24
*1273.70
*1274.60
1328.91
1341.69
1341.69
1548.64
1255.50
1341.69
5,598
Natural gas storage
Weekly Demand, 000s barrels per day
Expected Previous
change
week
309
161
102
59
207
909
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
307.80
9.2750
7.8225
4.3150
3.7525
5.2650
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
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
2.050
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
LBMA Platinum Price PM
*926.0
Platinum,Engelhard industrial
940.0
Platinum,Engelhard fabricated
1040.0
Palladium,Engelhard industrial
986.0
Palladium,Engelhard fabricated
1086.0
Aluminum, LME, $ per metric ton
*2085.0
Copper,Comex spot
3.0490
Iron Ore, 62% Fe CFR China-s
61.2
Shredded Scrap, US Midwest-s,w
276
Steel, HRC USA, FOB Midwest Mill-s
610
** EMBI Global Index
Expected Previous
change
week
Current
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
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Imports, 000s barrels per day
Year
ago
Wednesday
17.1150
12812
Other metals
Gold, per troy oz
2452.81
Inventories, imports and demand for the week ended November 10. Current figures are in thousands of barrels
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
import Natural-gas import and demand data are available monthly only.
Inventories, 000s barrels
0.9854
1.0523
3.110
3.050
3.110
2.700
2.840
2.510
2.960
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
3376.73
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
2771.99
Mini DJ Industrial Average (CBT)-$5 x index
WSJ.com/commodities
–0.46
–0.50
–0.75
–0.74
–0.86
0.27
–0.76
–0.49
–0.56
–0.70
–0.48
–0.81
–0.52
–0.56
–0.63
–0.25
–0.53
0.30
0.19
–0.52
–0.52
–0.50
–1.01
–0.51
0.04
0.06
–0.47
0.23
0.15
–0.56
–0.51
–0.58
–0.41
–0.39
–1.28
–0.54
9.7
14.7
7.7
30.0
16.1
8.3
34.3
4.7
15.8
13.6
19.4
22.5
19.5
20.1
22.6
18.4
8.4
1.5
2.0
15.0
12.9
9.1
2.2
14.7
0.0
0.3
9.6
1.2
1.3
20.1
14.2
17.4
8.6
11.4
14.9
12.0
Issuer
Symbol Coupon (%)
Maturity
Current
Wells Fargo
Xerox
Teva Pharma Finance Netherlands III
Walgreens Boots Alliance
WFC
XRX
TEVA
WBA
2.600
5.625
2.200
2.700
July 22, ’20
Dec. 15, ’19
July 21, ’21
Nov. 18, ’19
25
98
340
54
CBL & Associates
Macy's Retail Holdings
AT&T
American Financial
CBL
M
T
AFG
5.950
6.700
2.450
4.500
Dec. 15, ’26
July 15, ’34
June 30, ’20
June 15, ’47
447
401
58
152
Spread*, in basis points
One-day change
–20
–14
–12
–11
Last week
Stock Performance
Close ($)
% chg
44
n.a.
265
54
53.75
28.17
…
70.20
–0.54
0.32
…
–0.55
460
n.a.
51
n.a.
5.58
…
33.81
106.43
1.27
…
0.27
0.31
33
27
–54
424
n.a.
n.a.
26.79
9.64
51.01
...
2.10
–0.31
–0.87
...
27
26
25
25
n.a.
82
41
288
...
71.73
48.10
…
...
0.28
–0.58
…
–9
–9
–7
–5
…And spreads that widened the most
Bank of America
Pitney Bowes
RPM International
Dell International
BAC
PBI
RPM
DELL
8.000
4.700
2.250
6.020
Jan. 30, ’49
April 1, ’23
Dec. 15, ’20
June 15, ’26
117
578
45
238
MZ Funding
Citigroup
Morgan Stanley
Teva Pharmaceutical Finance IV
MZFUND 14.000
C
2.700
MS
5.450
TEVA
3.650
Jan. 20, ’20
Oct. 27, ’22
July 15, ’49
Nov. 10, ’21
1047
86
110
390
43
42
High-yield issues with the biggest price increases…
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
Seagate HDD Cayman*
Altice Luxembourg S.A.
Envision Healthcare
SFR S.A.
STX
ATCNA
EVHC
SFRFP
4.750
7.625
5.625
7.375
Jan. 1, ’25
Feb. 15, ’25
July 15, ’22
May 1, ’26
100.000
98.750
99.750
104.250
Frontier Communications
Talen Energy Supply
Navios Maritime Holdings
Telecom Italia Capital S.A.
FTR
TLN
NM
TITIM
7.125 March 15, ’19
9.500 July 15, ’22
8.125 Feb. 15, ’19
6.375 Nov. 15, ’33
96.781
102.500
100.275
115.000
1.88
1.75
1.75
1.38
1.28
1.25
1.15
0.90
Last week
Stock Performance
Close ($)
% chg
99.375
107.750
97.750
105.688
…
...
28.43
...
…
...
–0.32
...
98.750
104.000
99.875
116.625
6.66
...
1.26
...
3.10
...
–6.67
...
68.250
82.250
87.750
83.750
...
1.00
4.01
...
...
–1.99
–5.65
...
84.750
n.a.
82.250
78.500
3.48
33.04
10.47
4.10
–4.13
–1.31
–2.24
–3.07
…And with the biggest price decreases
Paperworks Industries
Jones Energy Holdings
Foresight Energy
EP Energy
PAPWRK 9.500
JONE
6.750
FELP
11.500
EPENEG
9.375
Weatherford International
United States Cellular
Transocean
Community Health Systems
WFT
USM
RIG
CYH
Aug. 15, ’19
April 1, ’22
April 1, ’23
May 1, ’20
6.500
Aug. 1, ’36
6.700 Dec. 15, ’33
6.800 March 15, ’38
7.125 July 15, ’20
63.250 –5.00
–4.00
71.000
–3.00
80.000
–2.50
75.000
79.000
103.000
78.031
77.000
–2.44
–2.38
–2.22
–1.75
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Thursday, November 16, 2017 | B11
BIGGEST 1,000 STOCKS
WSJ.com/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.
Wednesday, November 15, 2017
Net
Sym Close Chg
Stock
NYSE
ABB
ABB 25.09
AES
AES 10.87
Aflac
AFL 84.44
AT&T
T
33.81
AbbottLabs ABT 54.83
AbbVie
ABBV 93.76
Accenture ACN 144.26
AcuityBrands AYI 163.34
Adient
ADNT 74.27
AdvanceAuto AAP 91.58
AdvSemiEngg ASX 6.21
Aegon
AEG 6.00
AerCap
AER 49.75
Aetna
AET 171.00
AffiliatedMgrs AMG 184.77
AgilentTechs A
67.31
AgnicoEagle AEM 45.40
Agrium
AGU 105.07
AirProducts APD 160.86
t AlaskaAir ALK 64.44
Albemarle ALB 134.54
Alcoa
AA 42.21
AlexandriaRlEst ARE 123.89
Alibaba
BABA 181.48
Alleghany Y
581.28
Allegion
ALLE 82.03
Allergan
AGN 173.05
AllianceData ADS 224.59
s AlliantEnergy LNT 44.71
AllisonTransm ALSN 41.45
s Allstate
ALL 100.38
AllyFinancial ALLY 26.23
AlticeUSA ATUS 20.26
Altria
MO 65.26
AlumofChina ACH 18.13
Ambev
ABEV 6.05
s Ameren
AEE 64.05
AmericaMovil AMX 16.86
AmericaMovil A AMOV 16.87
AmCampus ACC 41.83
s AEP
AEP 76.59
AmerExpress AXP 93.26
s AmericanFin AFG 106.43
AmerHomes4Rent AMH 21.58
AIG
AIG 61.14
AmerTowerREIT AMT 148.93
s AmerWaterWorks AWK 89.82
Ameriprise AMP 157.39
AmerisourceBrgn ABC 77.53
Ametek
AME 68.82
Amphenol APH 88.41
AnadarkoPetrol APC 47.62
Andeavor ANDV 103.83
AndeavorLog ANDX 44.52
AB InBev BUD 113.50
AnnalyCap NLY 11.38
AnteroResources AR 18.92
Anthem
ANTM 218.20
Aon
AON 142.83
Apache
APA 41.03
ApartmtInv AIV 44.55
ApolloGlbMgmt APO 29.01
s AquaAmerica WTR 36.72
Aramark
ARMK 39.83
ArcelorMittal MT 27.92
t ArcherDaniels ADM 38.96
Arconic
ARNC 23.36
AristaNetworks ANET 224.90
ArrowElec ARW 77.31
AstraZeneca AZN 33.39
Athene
ATH 48.92
s AtmosEnergy ATO 89.57
Autohome ATHM 61.00
Autoliv
ALV 120.00
AutoZone AZO 609.14
Avalonbay AVB 184.69
s Avangrid
AGR 52.13
AveryDennison AVY 107.70
AxaltaCoating AXTA 32.35
BB&T
BBT 46.82
BCE
BCE 48.21
BHPBilliton BHP 41.21
BHPBilliton BBL 35.94
BP
BP 39.09
BRF
BRFS 12.71
BT Group BT 16.45
BWX Tech BWXT 59.88
BakerHughes BHGE 30.60
Ball
BLL 39.38
BancoBilbaoViz BBVA 8.46
BancodeChile BCH 87.93
BancoMacro BMA101.22
BcoSantChile BSAC 29.86
-0.22
0.03
0.17
0.09
-0.18
-0.99
-0.70
-0.97
-0.76
-4.14
-0.02
0.03
-0.40
-0.83
1.62
-0.15
...
-0.31
-1.29
2.76
-3.11
0.34
-2.39
-0.31
4.25
-0.87
1.23
-1.58
-0.47
-0.66
0.44
0.39
0.86
-0.47
-0.07
-0.01
-0.49
-0.07
0.09
-0.86
-0.80
-0.50
0.33
-0.27
-0.32
-0.56
-0.89
0.28
2.13
-0.67
-0.57
-0.43
-1.86
0.39
-1.27
-0.11
0.06
-0.25
-0.71
-0.85
-0.68
-0.61
-0.37
-0.19
0.26
-0.51
0.16
-2.20
-0.46
0.14
0.66
-0.97
0.98
-2.93
1.51
-2.82
-0.43
-0.47
0.56
-0.02
-0.14
-0.48
-0.56
-0.52
0.02
0.23
-0.96
0.09
-0.61
0.11
0.33
3.61
-0.07
Stock
Net
Sym Close Chg
BancoSantander SAN 6.49 0.10
BanColombia CIB 37.78 0.17
BankofAmerica BAC 26.79 0.55
BankofMontreal BMO 76.99 0.08
BankNY Mellon BK 51.94 0.09
BkNovaScotia BNS 65.16 -0.13
Barclays
BCS 9.58 0.07
Bard CR
BCR 332.26 -1.08
BarrickGold ABX 13.95 -0.06
BaxterIntl BAX 64.42 -0.04
BectonDicknsn BDX 219.10 -1.36
Berkley
WRB 68.10 0.32
BerkHathwy A BRK.A 272730-2080.00
BerkHathwy B BRK.B 181.81 -1.53
BerryGlobal BERY 58.25 -0.30
BestBuy
BBY 57.30 0.10
Bio-RadLab A BIO 254.14 0.92
BlackKnight BKI 46.45 0.15
BlackBerry BB 10.33 -0.07
BlackRock BLK 470.50 0.05
Blackstone BX 30.92 -0.28
BoardwalkPipe BWP 14.52 0.15
Boeing
BA 262.86 1.10
BorgWarner BWA 51.68 -0.39
BostonProps BXP 124.15 -0.63
BostonSci BSX 28.01 -0.31
Braskem
BAK 27.95 -0.32
Bristol-Myers BMY 61.07 -0.18
BritishAmTob BTI 64.15 -0.04
BroadridgeFinl BR 88.72 -0.99
BrookfieldMgt BAM 41.10 -0.26
BrookfieldInfr BIP 43.68 -0.10
Brown&Brown BRO 49.95 -0.05
Brown-Forman A BF.A 57.72 -1.55
Brown-Forman B BF.B 57.51 -1.61
t BuckeyePtrs BPL 47.58 -0.90
t Bunge
BG 65.15 -1.07
BurlingtonStrs BURL 98.50 1.15
CBD Pao
CBD 20.81 -0.01
s CBRE Group CBG 42.64 0.46
CBS A
CBS.A 56.11 -0.51
CBS B
CBS 56.04 -0.37
CF Industries CF 35.32 -0.20
CGI Group GIB 53.14 -0.18
CIT Group CIT 47.03 -0.81
s CMS Energy CMS 50.22 -0.33
CNA Fin
CNA 54.56 -0.11
CNOOC
CEO 135.20 -2.61
CPFLEnergia CPL 16.56
...
CRH
CRH 34.63 -0.34
CVS Health CVS 69.80 -0.64
CabotOil
COG 28.45 -0.01
CalAtlantic CAA 51.51 -0.62
CamdenProperty CPT 93.40 -1.52
CampbellSoup CPB 46.42 -1.39
CIBC
CM 88.38 -0.02
CanNtlRlwy CNI 79.83 -0.35
CanNaturalRes CNQ 34.81 0.39
CanPacRlwy CP 168.77 -3.06
Canon
CAJ 37.90 -0.46
CapitalOne COF 87.63 1.63
t CardinalHealth CAH 56.83 -0.24
Carlisle
CSL 107.89 -0.43
CarMax
KMX 70.72 -0.22
Carnival
CCL 65.78 -0.24
Carnival
CUK 66.03 -0.24
Caterpillar CAT 134.10 -3.44
Celanese A CE 103.13 -1.76
Cemex
CX
7.73 -0.08
CenovusEnergy CVE 10.17 -0.23
Centene
CNC 92.15 -0.88
CenterPointEner CNP 29.35 -0.33
CentraisElBras EBR 5.96 0.11
t CenturyLink CTL 14.78 0.38
Chemours CC 49.65 -0.95
Chevron
CVX 116.45 -0.47
ChinaEastrnAir CEA 25.86 -0.25
ChinaLifeIns LFC 16.96 -0.05
ChinaMobile CHL 50.52 -0.28
ChinaPetrol SNP 70.98 -0.70
ChinaSoAirlines ZNH 39.14 -0.02
ChinaTelecom CHA 48.66 -0.26
ChinaUnicom CHU 14.99 -0.11
Chipotle
CMG 285.45 4.55
Chubb
CB 151.16 0.47
ChunghwaTel CHT 33.81 -0.05
Church&Dwight CHD 44.41 -1.33
Cigna
CI 196.50 -0.64
CimarexEnergy XEC 115.53 -1.99
Citigroup
C
71.73 0.20
CitizensFin CFG 38.14 0.07
Clorox
CLX 132.78 -2.53
Coca-Cola KO 46.81 -0.62
Coca-Cola Euro CCE 38.84 -0.50
Coca-Cola Femsa KOF 67.33 -0.53
ColgatePalm CL 72.48 -0.98
ColonyNorthStar CLNS 12.38 -0.08
Stock
Net
Sym Close Chg
Comerica
CMA 78.88
SABESP
SBS 9.41
ConagraBrands CAG 35.18
ConchoRscs CXO 138.16
ConocoPhillips COP 50.49
s ConEd
ED 88.02
s ConstBrands A STZ 217.16
ConstBrands B STZ.B217.18
ContinentalRscs CLR 44.84
Cooper
COO 234.66
Corning
GLW 31.32
Coty
COTY 16.82
Credicorp
BAP 202.97
CreditSuisse CS 15.89
CrownCastle CCI 112.55
CrownHoldings CCK 58.31
Cullen/Frost CFR 94.75
Cummins
CMI 166.84
DCT Industrial DCT 59.60
s DTE Energy DTE 114.47
DXC Tech DXC 95.99
Danaher
DHR 92.42
Darden
DRI 81.95
DaVita
DVA 54.38
Deere
DE 132.27
DellTechs DVMT 80.27
DelphiAuto DLPH 98.16
DeltaAir
DAL 49.33
DeutscheBank DB 18.48
DevonEnergy DVN 37.91
Diageo
DEO 135.09
DigitalRealty DLR 120.15
DiscoverFinSvcs DFS 65.27
Disney
DIS 103.69
DolbyLab
DLB 61.06
DollarGeneral DG 82.30
s DominionEner D
82.23
Domino's
DPZ 175.76
Donaldson DCI 46.36
DouglasEmmett DEI 40.24
Dover
DOV 92.70
DowDuPont DWDP 68.97
DrPepperSnap DPS 87.33
DrReddy'sLab RDY 35.94
s DukeEnergy DUK 90.58
DukeRealty DRE 28.70
ENI
E
32.74
EOG Rscs EOG 101.36
EQT
EQT 59.51
EastmanChem EMN 89.55
Eaton
ETN 75.87
EatonVance EV 51.45
Ecolab
ECL 130.23
Ecopetrol
EC 11.60
s EdisonInt
EIX 81.84
EdwardsLife EW 104.98
EmersonElec EMR 59.59
t EnbridgeEnPtrs EEP 13.68
t Enbridge
ENB 34.52
Encana
ECA 11.74
EnelAmericas ENIA 9.85
EnelChile
ENIC 5.70
EnelGenChile EOCC 25.93
EnergyTransferEq ETE 16.38
t EnergyTransfer ETP 16.76
s Entergy
ETR 86.43
t EnterpriseProd EPD 24.02
Equifax
EFX 110.21
EquityLife ELS 89.07
EquityResdntl EQR 69.03
EssexProp ESS 252.15
EsteeLauder EL 124.61
EverestRe RE 229.27
s EversourceEner ES 65.00
s Exelon
EXC 41.77
ExtraSpaceSt EXR 85.67
ExxonMobil XOM 81.21
FMC
FMC 92.12
FactSet
FDS 195.42
FederalRealty FRT 131.59
FedEx
FDX 214.45
Ferrari
RACE 108.51
FiatChrysler FCAU 17.26
FibriaCelulose FBR 15.47
FidNatlFin FNF 39.60
FNFV Group FNFV 17.35
FidNatlInfo FIS 93.54
58.com
WUBA 71.75
FirstAmerFin FAF 54.33
FirstData
FDC 16.74
FirstRepBank FRC 92.03
s FirstEnergy FE 34.78
FleetCorTech FLT 176.48
Fluor
FLR 45.27
FomentoEconMex FMX 86.91
FordMotor F
12.00
ForestCIty A FCE.A 24.89
0.17
0.47
-0.69
-2.30
-0.74
-0.94
-0.93
-4.10
0.27
-2.12
-0.23
-0.13
-0.03
-0.03
-0.61
-0.62
-0.21
-2.28
-1.15
-1.11
0.23
-0.77
-0.90
-0.28
-0.61
-1.22
-2.13
0.43
0.29
-0.32
-1.33
-2.57
1.06
0.52
0.06
-0.95
-0.61
0.10
0.01
-0.41
-0.91
0.40
-0.49
0.46
-0.51
-0.22
-0.51
-1.11
-1.09
-0.69
-1.02
0.14
-1.17
-0.10
-0.80
-0.17
-1.15
-0.44
-0.45
-0.15
-0.13
0.05
0.11
-0.27
0.34
-0.99
-0.04
0.90
-1.38
-0.95
-4.67
-1.41
3.14
-0.81
-0.62
-0.67
-1.03
-0.89
0.20
-0.22
-5.49
-1.40
-0.24
0.17
-0.27
-0.15
0.11
-0.64
-0.35
-0.14
-0.01
-0.27
-2.20
-0.39
-0.89
-0.02
-0.61
Stock
Net
Sym Close Chg
Fortis
FTS 37.74
Fortive
FTV 71.85
FortBrandsHome FBHS 64.06
s Franco-Nevada FNV 84.78
FranklinRscs BEN 40.45
FreeportMcM FCX 13.63
FreseniusMed FMS 48.48
GGP
GGP 23.85
s Gallagher AJG 65.33
Gap
GPS 26.90
GardnerDenver GDI 27.54
Gartner
IT 117.30
Gazit-Globe GZT 9.55
GeneralDynamics GD 198.99
GeneralElec GE 18.26
GeneralMills GIS 52.53
GeneralMotors GM 42.86
Genpact
G
30.95
GenuineParts GPC 85.00
Gildan
GIL 29.93
t GSK
GSK 34.88
GlobalPayments GPN 99.39
GoDaddy
GDDY 48.91
Goldcorp
GG 13.24
GoldmanSachs GS 237.61
Graco
GGG 128.31
Grainger
GWW 195.73
s GreatPlainsEner GXP 33.70
GpoAvalAcc AVAL 8.40
GpFinSantMex BSMX 8.08
t GrupoTelevisa TV 19.25
Guidewire GWRE 79.30
HCA Healthcare HCA 74.93
HCP
HCP 26.91
HDFC Bank HDB 93.92
HP
HPQ 21.36
HSBC
HSBC 48.43
Halliburton HAL 41.69
t Hanesbrands HBI 19.19
HarleyDavidson HOG 47.47
Harris
HRS 138.97
HartfordFinl HIG 56.67
HealthcareAmer HTA 30.26
Heico
HEI 89.52
Heico A
HEI.A 74.60
Helm&Payne HP 53.73
Herbalife
HLF 65.05
Hershey
HSY 107.42
Hess
HES 43.67
HewlettPackard HPE 13.16
Hilton
HLT 73.38
HollyFrontier HFC 42.89
HomeDepot HD 165.47
HondaMotor HMC 32.16
Honeywell HON 146.37
HormelFoods HRL 33.08
DR Horton DHI 47.53
HostHotels HST 19.76
HuanengPower HNP 27.67
Hubbell
HUBB 119.63
Humana
HUM 233.28
HuntingIngalls HII 235.56
Huntsman HUN 29.41
HyattHotels H
69.96
ICICI Bank IBN 9.57
ING Groep ING 18.11
Invesco
IVZ 34.48
IDEX
IEX 126.45
IllinoisToolWks ITW 155.85
Infosys
INFY 14.84
Ingersoll-Rand IR
83.36
s Ingredion
INGR133.21
ICE
ICE 66.53
InterContinentl IHG 55.73
IBM
IBM 147.10
IntlFlavors IFF 147.95
IntlPaper
IP
53.89
t Interpublic IPG 18.45
InvitatHomes INVH 23.01
IronMountain IRM 40.53
IsraelChemicals ICL
3.90
ItauUnibanco ITUB 12.53
JPMorganChase JPM 98.19
JacobsEngg JEC 57.35
JamesHardie JHX 15.68
JanusHenderson JHG 36.66
J&J
JNJ 139.10
t JohnsonControls JCI 35.73
JonesLang JLL 150.24
JuniperNetworks JNPR 25.95
KAR Auction KAR 47.93
KB Fin
KB 51.85
KKR
KKR 19.22
KT
KT 14.20
KSCitySouthern KSU 102.17
Kellogg
K
63.74
KeyCorp
KEY 18.14
KeysightTechs KEYS 43.58
KilroyRealty KRC 72.75
KimberlyClark KMB 113.43
KimcoRealty KIM 19.10
t KinderMorgan KMI 17.03
Knight-Swift KNX 38.19
Kohl's
KSS 42.27
KoninklijkePhil PHG 38.96
KoreaElcPwr KEP 17.11
Kroger
KR 21.61
Kyocera
KYO 70.17
LATAMAirlines LTM 12.87
L Brands
LB 49.26
LG Display LPL 13.17
LINE
LN 42.57
L3 Tech
LLL 183.09
LabCpAm LH 149.37
LambWeston LW 52.74
LasVegasSands LVS 66.25
Lazard
LAZ 45.92
Lear
LEA 173.13
Leggett&Platt LEG 45.38
-0.15
-0.82
-0.63
0.14
-0.38
-0.17
-0.69
-0.10
0.23
0.17
-1.12
-0.34
-0.10
-1.23
0.36
-1.59
-0.14
-0.11
-1.01
-0.07
-0.10
-1.95
0.26
...
0.37
-1.04
0.15
-0.29
0.08
-0.05
-0.25
-0.58
-1.12
-0.11
0.96
...
0.11
-1.25
-0.06
0.54
-0.37
0.45
-0.39
-0.62
-0.75
-0.65
0.02
-2.44
-1.24
-0.11
0.47
0.05
-2.59
-0.33
-0.95
0.10
-0.11
-0.21
-0.04
-1.80
-6.28
-1.97
-0.70
0.41
0.04
...
0.01
-1.19
-2.69
-0.07
-1.34
2.58
-0.77
-0.54
-1.79
-2.70
-0.44
-0.19
-0.49
-0.47
-0.04
0.16
0.92
-0.59
-0.13
-0.16
-0.39
-0.16
0.50
-0.48
-0.21
0.79
0.02
0.20
-2.08
-1.44
-0.11
-0.42
-1.22
-1.12
0.18
-0.40
-0.56
0.07
-0.14
-0.04
-0.41
0.25
-0.07
-0.01
0.07
-0.79
-1.62
-0.54
-0.65
-1.02
-0.58
-1.80
-0.19
Stock
Net
Sym Close Chg
Leidos
LDOS 61.79 0.41
Lennar A
LEN 58.02 -0.54
Lennar B
LEN.B 48.43 -0.42
LennoxIntl LII 191.32 0.98
LeucadiaNatl LUK 25.27 -0.05
LibertyProperty LPT 44.18 -0.72
EliLilly
LLY 82.19 -0.30
LincolnNational LNC 73.95 0.51
LionsGate A LGF.A 30.56 -0.03
LionsGate B LGF.B 29.34 -0.02
LiveNationEnt LYV 45.32 -0.84
LloydsBanking LYG 3.55 0.01
LockheedMartin LMT 310.64 -3.10
Loews
L
49.69 -0.25
Lowe's
LOW 78.37 -0.86
LyondellBasell LYB 102.50 -1.24
M&T Bank MTB 161.22 0.51
MGM Resorts MGM 32.89 0.04
MPLX
MPLX 34.41 0.69
MSCI
MSCI 124.23 -0.89
Macerich
MAC 64.60 -0.16
Macy's
M
19.98 0.28
MagellanMid MMP 64.97 -0.33
MagnaIntl MGA 52.98 0.16
Manpower MAN 124.62 -1.36
ManulifeFin MFC 21.02 0.07
MarathonOil MRO 14.79 -0.05
MarathonPetrol MPC 61.50 -0.97
Markel
MKL 1088.42 10.60
Marsh&McLen MMC 83.14 -0.46
MartinMarietta MLM 206.18 -5.98
Masco
MAS 38.81 -0.23
Mastercard MA 148.33 -1.62
McCormick MKC 96.49 -2.09
McCormickVtg MKC.V 96.96 -1.59
McDonalds MCD 167.32 -0.79
McKesson MCK 138.86 2.69
Medtronic MDT 78.68 -0.48
t Merck
MRK 54.80 -0.19
MetLife
MET 51.84 -0.16
MettlerToledo MTD 625.19 -6.18
s MichaelKors KORS 55.18 0.29
MicroFocus MFGP 34.63 0.10
MidAmApt MAA 102.20 -1.74
MitsubishiUFJ MTU 6.53 -0.11
MizuhoFin MFG 3.51
...
MobileTeleSys MBT 10.47 -0.64
MohawkInds MHK 267.10 -0.04
MolsonCoors B TAP 78.79 -1.73
Monsanto MON 117.26 -0.79
Moody's
MCO 141.96 -1.18
MorganStanley MS 48.10 -0.28
Mosaic
MOS 22.38 -0.62
MotorolaSol MSI 90.39 -0.63
s NRG Energy NRG 29.37 0.45
NTTDoCoMo DCM 24.83 -0.18
NVR
NVR 3299.80-25.87
NationalGrid NGG 59.35 0.16
NatlOilwell NOV 31.94 -0.33
NatlRetailProp NNN 42.18 -0.35
NewOrientalEduc EDU 84.98 0.88
NY CmntyBcp NYCB 12.74 -0.23
t NewellBrands NWL 28.01 -0.03
NewfieldExpln NFX 29.57 -0.25
NewmontMin NEM 36.08 -0.20
s NextEraEnergy NEE 157.36 -1.04
NielsenHoldings NLSN 36.07 0.10
Nike
NKE 56.63 0.65
s NiSource
NI
27.24 -0.34
NobleEnergy NBL 25.99 -0.68
Nokia
NOK 4.84 0.01
NomuraHoldings NMR 5.64 -0.07
Nordstrom JWN 39.19 0.03
NorfolkSouthern NSC 126.42 -0.56
NorthropGrum NOC 299.94 -0.52
Novartis
NVS 82.60 -0.43
NovoNordisk NVO 49.67 -0.17
Nucor
NUE 54.94 0.08
OGE Energy OGE 35.55 -0.30
ONEOK
OKE 50.83 -0.55
OccidentalPetrol OXY 66.67 -0.65
Olin
OLN 35.36 -0.24
t OmegaHealthcare OHI 27.20 -1.14
Omnicom OMC 67.15 -0.51
Oracle
ORCL 48.82 -0.38
Orange
ORAN 16.47 0.03
OrbitalATK OA 132.39 -0.07
Orix
IX
83.30 -1.65
Oshkosh
OSK 84.06 -1.51
OwensCorning OC 82.19 -0.45
PG&E
PCG 55.63 -0.98
PLDT
PHI 32.43 0.55
PNC Fin
PNC 132.90 0.90
POSCO
PKX 70.14 -0.36
PPG Ind
PPG 113.39 -0.96
PPL
PPL 36.55 -0.52
PVH
PVH 126.88 0.05
PackagingCpAm PKG 111.85 -0.86
PaloAltoNtwks PANW 138.21 -0.60
ParkHotels PK 28.50 0.12
ParkerHannifin PH 179.73 0.06
ParsleyEnergy PE 25.18 -0.78
Pearson
PSO 9.10 -0.02
PembinaPipeline PBA 34.85 -0.37
Pentair
PNR 67.47 -0.55
PepsiCo
PEP 115.10 -0.66
PerkinElmer PKI 71.13 -0.48
Perrigo
PRGO 85.80 -0.20
PetroChina PTR 67.62 -0.99
PetroleoBrasil PBR 9.83 0.15
PetroleoBrasilA PBR.A 9.37 0.17
Pfizer
PFE 35.36 -0.02
PhilipMorris PM 102.05 -0.67
Phillips66 PSX 92.57 -0.26
PinnacleFoods PF 55.03 0.03
s PinnacleWest PNW 90.78 -0.93
PioneerNatRscs PXD 151.51 -1.30
PlainsAllAmPipe PAA 20.36 0.35
PlainsGP
PAGP 20.88 0.24
Net
Sym Close Chg
Stock
PolarisIndustries PII 120.56
Potash
POT 18.75
Praxair
PX 146.17
PrincipalFin PFG 68.57
Procter&Gamble PG 88.23
s Progressive PGR 51.65
Prologis
PLD 65.59
PrudentialFin PRU 110.22
Prudential PUK 48.88
s PublicServiceEnt PEG 51.31
PublicStorage PSA 210.05
PulteGroup PHM 31.73
QuestDiag DGX 91.85
RELX
RENX 22.38
RELX
RELX 23.11
RPM
RPM 51.01
RSP Permian RSPP 35.79
RalphLauren RL 87.13
RaymondJames RJF 82.79
Raytheon RTN 182.85
RealtyIncome O
56.47
RedHat
RHT 123.82
RegencyCtrs REG 66.87
RegionsFin RF 15.80
ReinsGrp
RGA 150.05
RepublicSvcs RSG 63.14
ResMed
RMD 84.25
RestaurantBrands QSR 63.41
RioTinto
RIO 47.56
s RobertHalf RHI 53.43
Rockwell
ROK 188.73
RockwellCollins COL 132.05
RogersComm B RCI 52.92
Rollins
ROL 44.93
RoperTech ROP 255.39
RoyalBkCanada RY 78.30
RoyalBkScotland RBS 7.32
RoyalCaribbean RCL 122.52
RoyalDutchA RDS.A 63.16
RoyalDutchB RDS.B 65.15
SAP
SAP 112.88
S&P Global SPGI 158.82
SINOPEC
SHI 58.90
SK Telecom SKM 25.48
SLGreenRealty SLG 100.16
s Salesforce.com CRM 105.43
Sanofi
SNY 44.66
SantanderCons SC 16.28
Sasol
SSL 29.76
Scana
SCG 44.39
t Schlumberger SLB 61.55
SchwabC
SCHW 44.54
ScottsMiracleGro SMG 96.72
SealedAir SEE 44.95
SemicondctrMfg SMI 7.22
s SempraEnergy SRE 120.41
SensataTech ST 47.68
ServiceCorp SCI 34.81
ServiceMaster SERV 46.31
ServiceNow NOW 123.32
ShawComm B SJR 22.20
SherwinWilliams SHW 385.96
ShinhanFin SHG 44.09
Shopify
SHOP 98.04
SimonProperty SPG 159.38
SmithAO
AOS 58.41
Smith&Nephew SNN 35.50
Smucker
SJM 106.51
Snap
SNAP 12.46
SnapOn
SNA 156.69
SOQUIMICH SQM 56.58
Sony
SNE 45.24
Southern
SO 51.92
SoCopper SCCO 42.39
SouthwestAir LUV 54.63
SpectraEnerPtrs SEP 40.61
SpectrumBrands SPB 99.35
SpiritAeroSys SPR 79.90
Sprint
S
6.16
s Square
SQ 40.66
StanleyBlackDck SWK 163.44
StarwoodProp STWD 21.53
StateStreet STT 91.86
Statoil
STO 19.95
Steris
STE 87.61
STMicroelec STM 23.63
Stryker
SYK 154.80
SumitomoMits SMFG 7.79
SunComms SUI 92.72
SunLifeFinancial SLF 38.86
SuncorEnergy SU 35.57
SunTrustBanks STI 57.78
SynchronyFin SYF 32.53
Syngenta SYT 92.36
Sysco
SYY 54.10
TAL Education TAL 29.12
Company
Symbol
NYSE lows - 150
AK Steel
AXIS Capital
AZZ
AKS
AXS
AZZ
13.72 ...
9.62 -0.3
12.00 -0.4
47.24 -1.9
65.03 -1.6
27.38 -1.7
47.11 0.8
55.69 -0.4
9.04 ...
14.06 2.6
8.30 0.6
12.29 -0.9
19.40 1.0
7.34 -0.5
12.48 1.5
10.42 0.2
11.04 -0.9
9.43 -2.1
0.37 -13.6
8.87 -0.4
3.95 -3.1
1.95 ...
24.40 -0.2
9.40 -1.7
10.00 -0.2
16.00 -4.7
22.46 -0.3
8.78 -0.6
5.09 0.2
66.87 -0.3
14.03 -0.1
6.31 0.3
1.13 -1.7
13.02 -1.4
13.63 -3.1
34.39 -1.3
15.97 2.1
15.00 1.3
23.59 -0.2
12.60 -0.4
10.64 -0.5
26.26 -0.2
13.59 1.6
10.93 0.3
12.62 1.1
9.02 -0.8
0.20 ...
24.46 -0.9
20.59 0.3
26.62 -4.4
34.72 -0.3
5.59 0.5
8.02 1.0
17.97 -0.9
19.22 -1.3
18.90 -0.3
17.10 -0.6
18.30 -1.0
11.33 0.2
4.26 0.7
34.51 -0.4
23.70 -1.0
4.41 1.4
0.20 -30.1
9.01 ...
14.50 1.0
12.36 ...
17.00 -2.3
35.56 -2.5
4.05 -1.2
14.01 -2.2
16.15 0.9
63.08 -0.7
7.40 -0.7
54.40 -0.3
29.20 -2.2
10.14 -1.5
5.70 -13.8
8.07 -0.9
27.46 -0.1
15.27 -1.3
NuvSrIncmFd NSL
OmegaHealthcare OHI
PHH
PHH
PPDAI
PPDF
PIMCO HiIncm PHK
PioneerFR
PHD
PitneyBowesNt43 PBIpB
PitneyBowes PBI
PrudShrtDuration ISD
Quantum
QTM
REV
REVG
RR Donnelley RRD
RangerEnergySvcs RNGR
RedwoodTrust RWT
SalientMidstream SMM
SandRidgeEnergy SD
Schlumberger SLB
ScrippsEW
SSP
Semgroup
SEMG
Sogou
SOGO
StandardMotor SMP
StifelFinNts47 SFB
SummitHotelPfdE INNpE
THLCreditSrLoan TSLF
TeekayLNG PfdB TGPpB
3D Systems
DDD
TimeWarner
TWX
TownsquareMedia TSQ
Transmontaigne TLP
UnitedContinental UAL
UniversalHealthB UHS
VoyaPrimeRate PPR
WstAstCpLoanFd TLI
WstAstHIF II HIX
WesternGasEquity WGP
WesternGasPtrs WES
Whirlpool
WHR
WideOpenWest WOW
Willbros
WG
Williams
WMB
WorldFuelSvcs INT
WorthingtonInds WOR
6.36 -0.8
27.04 -4.0
10.89 0.1
12.70 -2.3
7.19 1.4
11.40 0.3
21.46 -3.3
9.50 -0.3
14.69 -0.2
4.11 8.4
23.38 -1.4
7.15 -3.6
8.48 4.0
14.29 -0.6
9.70 0.4
14.65 -13.2
61.11 -2.0
13.88 -1.3
22.15 -2.0
12.50 -2.4
40.56 -1.9
24.77 -0.1
24.60 -1.0
16.30 0.3
24.36 -0.2
7.92 -0.5
85.88 -0.2
7.04 -3.0
38.97 -0.6
56.51 0.5
95.26 -1.3
4.97 0.8
10.40 0.2
6.50 -0.7
35.56 0.5
43.62 1.1
158.80 0.4
9.68 1.3
1.11 0.9
27.21 -0.8
25.80 -0.5
39.52 -2.1
NYSE Arca highs - 9
DirexUtilBl3X UTSL 34.73 -2.0
ElemntsSpectrmLC EEH
19.71 2.7
FidelityMSCIUtils FUTY 37.00 -0.9
29.64 1.6
FrankUSLowVol FLLV
52.96 0.4
GuggTR Bond GTO
142.50 -0.9
iShU.S.Utilities IDU
ProShrUltraUtil UPW 54.09 -1.6
57.23 -0.9
UtilitiesSelSector XLU
VangdUtilities VPU 125.54 -0.9
NYSE Arca lows - 51
AIPoweredEquity AIEQ
AGFiQ US NeutrVal CHEP
AlerianEnergyInfr ENFR
AlerianMLPETF AMLP
BarclaysETN+Select ATMP
CTrksETNsMillerHwd MLPC
ColumbiaDivFixed DIAL
CSX2xAlerianMLPETN AMJL
DirexMexicoBl3 MEXX
DirexSilverMinBl2 SHNY
DirexZacksMLPHiIn ZMLP
ETFMG PrimeJrSilver SILJ
ETRACSMthPay2xLev DVHL
ETRACSMthlyPay2x SMHD
ETRACS2xMLvAlerian MLPQ
ElemntsGrain GRU
First Tr Instl Pfd FPEI
FrankFTSEAustralia FLAU
FrankFTSEBrazil FLBR
FrankFTSECanada FLCA
FrankFTSEChina FLCH
FrankFTSEEurHdg FLEH
FrankFTSEJapan FLJP
FrankFTSEJapanHdg FLJH
24.03
23.73
21.62
9.99
19.64
14.53
19.78
17.34
20.08
8.36
15.43
10.24
19.51
16.53
32.29
3.35
19.95
24.97
23.32
24.63
25.11
24.37
25.46
25.23
-0.2
-2.7
-0.5
0.9
0.7
0.3
...
-0.7
-2.6
1.0
0.4
-0.3
-0.2
0.4
1.3
-1.3
0.1
-0.9
0.4
-0.4
-0.6
-0.6
-0.7
-1.9
USAA USA SC Val USVM
VanEckHiIncmInfra YMLI
VelocityShLIBOR DLBR
VirtusGlovistaEM EMEM
VirtusWMCGlb VGFO
XtrkrsUSDHYCorpBd HYLB
49.03
12.61
22.89
24.58
25.00
49.88
-0.6
1.0
0.5
-0.5
-0.4
...
NYSE American highs - 2
Birks
WirelessTel
BGI
WTT
2.72 -6.3
2.27 -3.2
NYSE American lows - 12
2.00 4.3
AsteriasBiotherap AST
0.12 -11.4
Banro
BAA
13.51 0.5
BlkRkMD Muni BZM
CRH Medical CRHM 1.46 11.5
2.99 -1.6
ContangoO&G MCF
1.60 -2.9
eMagin
EMAN
21.34 0.7
FT EnerIncome FEN
0.16 -3.5
JRjr33
JRJR
NeubrgBermMLPIncm NML
8.10 0.6
PioneerDiversHiIT HNW 15.22 ...
0.55 -0.9
SolitarioZinc
XPL
1.30 ...
UnvlSecInstr
UUU
Nasdaq highs - 52
AltairEngg
ALTR
AvidTechnology AVID
CME Group
CME
CareerEducation CECO
CarGurus
CARG
ChinaInternet CIFS
ChromaDex
CDXC
ConcertPharm CNCE
Cutera
CUTR
DicernaPharma DRNA
Ebix
EBIX
EnphaseEnergy ENPH
EuroTech
CLWT
FSB Bancorp FSBC
FS Bancorp
FSBW
Fanhua
FANH
FortressBioPfdA FBIOP
HamiltonLane HLNE
HomeTownBkshs HMTA
HutchisonChina HCM
InfinityPropCas IPCC
Intuit
INTU
iPathFlattener FLAT
iSectorsPostMPT PMPT
iShRuss1000PureUS AMCA
JensynAcqn Rt JSYNR
Kingstone
KINS
LivaNova
LIVN
NektarTherap NKTR
OakValleyBncp OVLY
Paychex
PAYX
PinnacleEnt
PNK
PorterBancorp PBIB
PwrShDWA Util PUI
PreformedLine PLPC
Qualys
QLYS
RCI Hospitality RICK
RedRockResorts RRR
Remark
MARK
SMTC
SMTX
SemiLEDS
LEDS
SinovacBiotech SVA
StarsGroup
TSG
TowerSemi
TSEM
USA Tech
USAT
UTStarcom
UTSI
VicShUS500EnhVol CFO
VicShUSLCHiDivVol CDL
Vodafone
VOD
Weibo
WB
YY
YY
ZAGG
ZAGG
23.55 5.1
6.33 14.7
141.44 -0.4
13.23 -2.4
35.42 4.1
55.85 10.9
6.10 0.2
20.25 6.6
46.15 3.7
9.69 13.8
74.85 0.1
2.72 10.1
5.65 -10.5
16.80 2.8
57.40 2.6
18.95 4.8
24.50 0.4
32.25 1.7
11.31 0.1
34.56 9.6
108.65 -0.6
156.46 -0.9
64.82 4.0
27.35 0.3
25.90 0.7
0.55 4.0
18.30 2.2
82.36 0.3
43.15 8.9
17.70 -0.5
65.81 -1.2
28.49 -1.7
14.00 -0.3
29.72 -0.7
76.98 -1.2
58.45 -0.7
30.76 1.6
27.38 0.7
5.20 0.2
1.72 1.0
10.49 128.5
7.47 0.4
22.30 0.9
34.37 0.4
7.85 ...
3.24 0.9
46.97 -0.5
44.50 -0.7
30.78 0.7
113.92 -0.9
111.52 24.8
21.15 3.5
BaringtonHilcoRt BHACR
Biocept
BIOC
BlackRockCapInvt BKCC
BroadwindEnergy BWEN
CMSevenStarAcqnRt CMSSR
CPI Card
PMTS
CapitalaFinNts22 CPTAL
Cardtronics
CATM
CarverBancorp CARV
CECO Env
CECE
Chanticleer
BURG
CheckpointTherap CKPT
ClearSignComb CLIR
ConforMIS
CFMS
ConsldComm CNSL
Criteo
CRTO
DHX Media VV DHXM
DiscovComm C DISCK
DiscovComm A DISCA
DoubleEagleA EAGL
EagleBulkShip EGLE
Egalet
EGLT
EnergyXXIGulfCoast EXXI
FTD
FTD
FibrocellScience FCSC
Finisar
FNSR
FrontierComm FTR
GreenPlains
GPRE
HemisphereMedia HMTV
HighlandSrLoan SNLN
INC Research INCR
InfoSonics
IFON
iShESG1-5YCpBd SUSB
iShMSCIQatarCap QAT
iSh1-3YTreasuryBd SHY
LaureateEduc LAUR
LibertyTripAdvA LTRPA
LifePointHealth LPNT
LiquiditySvcs LQDT
Macom Tech MTSI
MaidenHoldings MHLD
MatthewsIntl MATW
Medovex
MDVX
MidatechPharma MTP
MySize
MYSZ
NII Holdings
NIHD
Neonode
NEON
Netlist
NLST
Neuralstem
CUR
NuanceComms NUAN
NumereX
NMRX
OPKOHealth
OPK
ObalonTherap OBLN
OxbridgeRe
OXBR
PAVmedWt
PAVMW
PowellIndustries POWL
Precipio
PRPO
RISE Education REDU
RamacoRscs
METC
RiminiStreet
RMNI
ScanSource
SCSC
SearsHoldings SHLD
SearsHoldingsWt SHLDW
SecurityNatFin SNFCA
ServiceSource SREV
SonusNetworks SONS
SparkEnergy
SPKE
StarBulkNts22 SBLKZ
StericyclePfdA SRCLP
Sunworks
SUNW
SynergyPharm SGYP
TeleNav
TNAV
TremontMortgage TRMT
TripAdvisor
TRIP
trivago
TRVG
TurtleBeach
HEAR
UniversalForest UFPI
VeecoInstr
VECO
VicShEMHiDivVol CEY
WMIH
WMIH
WPP
WPPGY
WestmorelandCoal WLB
0.14 -13.3
0.60 -2.5
6.60 -0.7
2.40 -1.6
0.27 -4.3
0.78 2.0
24.50 -0.4
15.80 -1.0
2.01 -2.2
5.20 -3.8
1.84 -5.5
4.02 1.9
2.45 -7.0
3.03 -4.0
13.04 4.4
34.13 -1.8
2.95 -2.4
14.99 3.1
15.99 2.7
9.45 -1.5
4.22 1.4
0.80 -2.7
4.77 -8.6
6.93 -2.2
1.54 -10.9
17.80 0.7
6.25 3.1
15.95 -1.2
10.65 0.9
18.14 -0.1
33.60 4.8
1.32 4.2
24.97 -0.1
13.65 -1.2
84.11 ...
10.46 -3.4
7.90 2.4
42.50 0.1
5.20 -1.9
29.98 -18.0
6.00 1.2
56.60 0.4
0.50 -42.6
1.28 -0.6
0.62 -2.0
0.33 5.8
0.79 -9.7
0.28 -52.6
0.88 3.4
14.02 -0.7
3.38 0.4
4.50 2.7
7.70 -1.1
2.30 -9.1
0.82 -2.9
26.75 -2.5
1.18 -8.0
9.60 -5.8
3.81 -2.7
6.58 -8.9
34.45 -2.4
3.62 9.4
0.23 ...
5.05 -3.8
2.64 -4.3
6.89 -0.1
11.35 -5.0
24.21 0.4
50.45 -0.8
0.97 -7.3
1.68 -6.9
4.70 -3.1
15.55 3.0
29.50 1.6
7.05 0.7
0.47 2.0
36.03 0.6
14.75 1.0
24.47 -0.8
0.60 6.4
82.44 -2.8
1.60 1.2
0.11 DISH Network DISH 50.61 0.10
0.17 DentsplySirona XRAY 66.60 1.21
0.47 DiamondbkEner FANG 106.62 -1.65
-0.05 t DiscovComm C DISCK 15.75 0.48
-2.16 t DiscovComm A DISCA 16.72 0.44
-0.13 DollarTree DLTR 93.09 -0.36
ETFC 43.76 -0.11
0.10 E*TRADE
0.35 EXACT Sci EXAS 57.42 -0.91
0.08 EastWestBncp EWBC 57.40 0.17
EBAY 35.30 0.08
0.57 eBay
SATS 57.93 -0.94
-0.22 EchoStar
0.23 ElbitSystems ESLT139.86 -2.66
-0.05 ElectronicArts EA 111.48 -0.79
EQIX 474.42 -6.63
2.45 Equinix
ERIC 5.87 -0.08
-1.06 Ericsson
-1.35 ErieIndemnity A ERIE 122.80 0.46
EXEL 24.75 -0.36
-0.62 Exelixis
EXPE 121.17 -0.62
0.09 Expedia
-0.44 ExpeditorsIntl EXPD 58.98 -0.41
-0.11 ExpressScripts ESRX 60.05 -0.20
-0.63 F5Networks FFIV 119.79 -1.43
FB 177.95 -0.12
-0.51 Facebook
FAST 47.57 0.10
0.17 Fastenal
0.03 FifthThirdBncp FITB 28.46 -0.15
-1.13 FirstSolar FSLR 60.60 -0.68
FISV 128.52 -1.21
-0.28 Fiserv
Flex
FLEX 18.24
...
FlirSystems FLIR 47.20 0.11
Fortinet
FTNT 39.90 -0.12
AGNC Invt AGNC 19.63 -0.31 Gaming&Leisure GLPI 36.11 -0.45
Ansys
ANSS 149.32 -0.11 Garmin
GRMN 60.29 -0.46
ASML
ASML 177.91 -2.43 GileadSciences GILD 71.81 0.66
Abiomed
ABMD 193.11 -0.64 Goodyear GT 29.06 -0.30
ActivisionBliz ATVI 62.89 -1.14 Grifols
GRFS 22.66 -0.52
AdobeSystems ADBE 180.08 -1.24 GpoFinGalicia GGAL 50.85 0.58
AdvMicroDevices AMD 11.07 -0.05 HD Supply HDS 34.44 -0.14
AkamaiTech AKAM 54.01 0.26 Hasbro
HAS 94.75 -1.23
AlexionPharm ALXN 110.34 0.36 HenrySchein HSIC 67.97 1.13
AlignTech ALGN 249.19 -4.83 Hologic
HOLX 39.25 -0.37
t Alkermes ALKS 48.08 0.39 JBHunt
JBHT 101.54 -0.93
AlnylamPharm ALNY 125.95 -4.37 HuntingtonBcshs HBAN 13.51 -0.10
Alphabet C GOOG 1020.91 -5.09 IAC/InterActive IAC 124.78 -1.34
Alphabet A GOOGL 1036.41 -5.23 IdexxLab
IDXX 151.40 1.86
Altaba
AABA 69.43 -0.09 IHSMarkit INFO 43.53 -0.36
Amazon.com AMZN 1126.69-10.15 IPG Photonics IPGP 227.11 0.84
Amdocs
DOX 63.82 0.03 IRSA Prop IRCP 56.00 -0.46
Amerco
UHAL 357.64 -5.99 IcahnEnterprises IEP 53.34 0.47
AmerAirlines AAL 47.19 1.38 Icon
ICLR 113.46 1.11
Amgen
AMGN 169.38 -0.75 Illumina
ILMN 205.42 -0.63
AnalogDevices ADI 89.16 -1.28 Incyte
INCY 105.24 0.12
Apple
AAPL 169.08 -2.26 Intel
INTC 45.46 -0.40
ApplMaterials AMAT 55.77 -0.65 InteractiveBrkrs IBKR 54.08 0.03
ArchCapital ACGL 96.46 0.90 s Intuit
INTU 153.86 -1.35
Atlassian
TEAM 51.90 -0.48 IntuitiveSurgical ISRG 389.69 -1.28
Autodesk ADSK 124.02 0.15 IonisPharma IONS 53.65 0.12
ADP
ADP 110.66 -1.42 JD.com
JD 39.35 0.45
Baidu
BIDU 234.21 -0.71 JackHenry JKHY 112.34 -0.76
BankofOzarks OZRK 44.19 0.41 JazzPharma JAZZ 134.17 -0.07
Biogen
BIIB 310.28 0.59 JetBlue
JBLU 20.15 0.52
BioMarinPharm BMRN 81.81 0.40 JunoTherap JUNO 56.40 2.54
Bioverativ BIVV 55.18 0.79 KLA Tencor KLAC 102.95 0.80
bluebirdbio BLUE 156.90 -1.45 KraftHeinz KHC 78.78 -0.60
BrighthouseFin BHF 54.97 -0.41 LKQ
LKQ 37.15 -0.31
Broadcom AVGO 265.60 2.34 LamResearch LRCX 207.86 -0.78
CA
CA 32.12 -0.19 LamarAdv LAMR 75.68 -0.58
CDK Global CDK 65.85 3.19 LibertyBroadbandC LBRDK 88.93 1.05
CDW
CDW 65.76 -1.41 LibertyBroadbandA LBRDA 87.45 0.60
CH Robinson CHRW 79.95 -0.42 LibertyGlobal A LBTYA 30.07 0.72
s CME Group CME 139.67 -0.53 LibertyGlobal C LBTYK 29.04 0.70
CSX
CSX 48.63 -0.77 LibertyLiLAC C LILAK 22.24 0.18
CadenceDesign CDNS 44.32 -0.45 LibertyLiLAC A LILA 22.17 0.13
CaesarsEnt CZR 12.85 0.45 LibertyQVC B QVCB 23.71 1.46
Carlyle
CG 20.35 -0.30 LibertyQVC A QVCA 23.57 -0.16
CboeGlobalMkts CBOE 115.51 -1.09 LibertyVenturesA LVNTA 55.94 -0.19
Celgene
CELG 100.34 1.48 LibertyFormOne C FWONK 36.16 0.04
CentennialRsc CDEV 19.40 -0.38 LibertyFormOne A FWONA 34.51 0.09
Cerner
CERN 64.78 -0.29 LibertyBraves A BATRA 21.64 -0.07
CharterComms CHTR 334.22 -2.59 LibertyBraves C BATRK 21.69 -0.07
CheckPoint CHKP 103.05 0.65 LibertySirius C LSXMK 40.73 0.36
ChinaLodging HTHT 123.69 -0.97 LibertySirius A LSXMA 40.81 0.33
CincinnatiFin CINF 74.11 0.05 LincolnElectric LECO 85.88 -0.50
Cintas
CTAS 149.50 0.30 LogitechIntl LOGI 34.47 -0.21
CiscoSystems CSCO 34.11 0.07 LogMeIn
LOGM 114.40 -0.10
CitrixSystems CTXS 84.12 -1.10 lululemon LULU 64.91 -0.02
Cognex
CGNX 137.57 -0.16 MKS Instrum MKSI 101.80 -1.60
CognizantTech CTSH 74.09 -0.88 MarketAxess MKTX 177.82 3.88
Coherent
COHR 302.74 2.67 Marriott
MAR 122.26 -0.80
Comcast A CMCSA 37.18 0.32 MarvellTech MRVL 20.07 -0.05
CommerceBcshrs CBSH 55.65 -0.01 MatchGroup MTCH 29.15 -0.24
CommScope COMM 33.57 -0.27 Mattel
MAT 18.32 -0.22
Copart
CPRT 35.95 0.07 MaximIntProducts MXIM 53.22 -0.44
CoStar
CSGP 297.31 -1.74 MelcoResorts MLCO 24.91 0.27
Costco
COST 169.00 -2.44 MercadoLibre MELI 263.54 1.05
Ctrip.com CTRP 45.87 0.57 MicrochipTech MCHP 89.59 -1.42
CypressSemi CY 16.36 -0.42 MicronTech MU 45.36 -0.44
CyrusOne CONE 62.19 -1.51 Microsemi MSCC 52.51 -0.40
WestAllianceBcp WAL 54.16
t WesternGasEquity WGP 36.54
t WesternGasPtrs WES 44.54
WesternUnion WU 19.60
WestlakeChem WLK 90.59
WestpacBanking WBK 24.11
WestRock WRK 58.76
s Weyerhaeuser WY 36.55
WheatonPrecMet WPM 20.59
t Whirlpool WHR 161.57
t Williams
WMB 27.50
WilliamsPartners WPZ 35.41
Wipro
WIT 5.12
WooriBank WF 43.65
Wyndham WYN 106.48
XPO Logistics XPO 71.87
s XcelEnergy XEL 51.18
Xerox
XRX 28.17
Xylem
XYL 65.90
YPF
YPF 22.26
YumBrands YUM 78.80
YumChina YUMC 41.45
ZTO Express ZTO 16.73
ZayoGroup ZAYO 34.40
ZimmerBiomet ZBH 111.08
Zoetis
ZTS 69.62
NASDAQ
Amount
Yld % New/Old Frq
Payable /
Record
Company
Aramark
Everest Re Group
GMAC Capital Tr Ser2
HP
Lam Research
Valvoline
ARMK
RE
ALLYpA
HPQ
LRCX
VVV
1.0
2.3
7.1
2.6
0.9
1.3
.105 /.103
1.30 /1.25
.4601 /.45361
.1393 /.1327
.50 /.45
.0745 /.049
Q
Q
Q
Q
Q
Q
Dec07 /Nov27
Dec13 /Nov29
Feb15 /Feb14
Jan03 /Dec13
Jan10 /Dec06
Dec15 /Dec01
Initial
Boise Cascade
.07
BCC
Dec15 /Nov27
Funds and investment companies
BSL
BSL
BSL
BGX
BGX
BGX
BGB
BGB
BGB
FFHG
FFTI
SNLN
NAZ
NKX
NCB
NCA
NCA
NAC
NJV
NJV
NJV
6.7
6.7
6.7
7.9
7.9
7.9
8.1
8.1
8.1
0.3
2.9
4.6
4.4
4.7
4.1
3.8
3.8
5.1
3.9
3.9
3.9
.097
.097
.097
.103
.103
.103
.105
.105
.105
.0207
.0604
.07767
.0086
.0059
.1116
.007
.132
.009
.0028
.3494
.0073
M
M
M
M
M
M
M
M
M
Q
M
M
Symbol
Nuveen NJ Qual Muni
Nuveen NY Mun Value 2
Nuveen NY Mun Value 2
Nuveen NY Muni Value Fund
Nuveen NY Qual Muni
Nuveen OH Qual Muni
Nuveen PA Mun Value Fund
Nuveen PA Mun Value Fund
Nuveen PA Mun Value Fund
Nuveen PA Qual Muni
Nuveen PA Qual Muni
Nuveen TX Qual Muni
OSh FTSE AsiaPac Qlty Div
O'Shares FTSE Russ Intl
O'Shares FTSE Russ SC Qu
OShs FTSE Eur Quality Div
OShs FTSE US Quality Div
Increased
NYSE highs - 84
BlackRockFRIncm FRA
BlkRk2022GlbIncm BGIO
BlueCapReins BCRH
BuckeyePtrs
BPL
Bunge
BG
CSRA
CSRA
CallonPetrolPfd CPEpA
CardinalHealth CAH
CenterCoastMLP CEN
CenturyLink
CTL
ChannelAdvisor ECOM
ChinaOnlineEduc COE
Ciena
CIEN
ClearBridgeAmEn CBA
ClearBridgeEnMLPFd CEM
ClearbridgeEngyMLP EMO
ClearbridgeEnMLPTR CTR
ClipperRealty CLPR
CobaltIntlEner CIE
C&SMLPIn&EnerOpp MIE
CommunityHlthSys CYH
EngGr-Cmg
CIG
CompassPfdA CODIpA
Volaris
VLRS
CushingTotRetFd SRV
DieboldNixdorf DBD
Doubleline Oppor DBL
Duff&PhelpsUtil DUC
Duff&PhelpsSelEn DSE
EQT Midstream EQM
EtnVncFR IT
EFT
EtnVncSrIT
EVF
EldoradoGold EGO
EnbridgeEnergy EEQ
EnbridgeEnPtrs EEP
Enbridge
ENB
EnergyTransfer ETP
EnLinkMid
ENLC
EnterpriseProd EPD
Evertec
EVTC
FidcryClymrOppFd FMO
FirstRepublicPfE FRCpE
FT MLP&Energy FEI
FT NewOppsMLP FPL
FT SrFR Incm FCT
FT SrFR2022 FIV
GabelliGlbSmRt GGZr
GabelliMultPfdE GGTpE
GenesisEnergy GEL
Glaukos
GKOS
GSK
GSK
GS MLPEnergyRen GER
GS MLP IncmOpp GMZ
Graham
GHM
GrupoTelevisa TV
Hanesbrands HBI
HoeghLNG Ptrs HMLP
Interpublic
IPG
InvescoCreditOpps VTA
InvescoSeniorIncm VVR
JohnsonControls JCI
JustEnergyPfdA JEpA
JustEnergy
JE
KKRIncomeOppsRt KIOr
KayneAnEnerTRFd KYE
KayneAnMLPInv KYN
KayneAnMidstrEner KMF
KinderMorgan KMI
KinderMorganPfdA KMIpA
LendingClub
LC
MRC Global
MRC
MSG Networks MSGN
MacquarieInfr MIC
MadisonCvrdCall MCN
Merck
MRK
NCR
NCR
NOW
DNOW
Netshoes
NETS
4.00 5.6 NewSeniorInvt SNR
51.93 0.1 NewellBrands NWL
43.18 -1.0 NexaResources NEXA
-1.05
-0.34
0.06
1.10
-0.83
-0.32
0.06
0.76
-5.93
-0.21
-0.66
0.01
1.49
0.12
0.03
-0.52
-1.11
0.03
0.08
0.54
-0.33
-0.61
0.85
-1.10
-0.57
-0.06
0.22
-1.93
-1.04
-0.14
-0.11
0.19
-0.21
-0.13
-0.51
-0.37
-1.21
-0.30
-2.87
-0.55
-0.15
0.06
...
-0.14
-1.59
0.14
-0.03
-0.59
-0.82
-0.35
0.36
-0.37
-0.30
-0.53
0.29
-0.01
-1.18
-1.49
0.18
-1.23
-1.85
-1.23
0.08
-0.13
-0.29
-1.73
-2.76
0.09
0.11
-0.85
-1.45
-1.41
-0.66
-0.50
-0.66
-0.11
-0.03
-1.28
0.49
0.13
-2.36
0.04
-0.77
-0.07
-0.64
-1.26
-0.60
-0.65
-0.80
...
-1.45
-1.91
-0.29
-0.35
-2.48
-0.09
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Microsoft MSFT 82.98
Middleby
MIDD 110.15
Momo
MOMO 30.59
Mondelez MDLZ 41.95
MonsterBev MNST 61.60
Mylan
MYL 37.80
NXP Semi NXPI 115.00
Nasdaq
NDAQ 75.93
NatlInstruments NATI 44.34
s NektarTherap NKTR 43.07
NetApp
NTAP 45.82
Netease
NTES 302.47
Netflix
NFLX 192.12
Neurocrine NBIX 72.04
NewsCorp A NWSA 15.19
NewsCorp B NWS 15.55
Nordson
NDSN 123.92
NorthernTrust NTRS 93.28
NorwegCruise NCLH 55.07
NVIDIA
NVDA 209.98
OReillyAuto ORLY 215.77
OldDomFreight ODFL 117.32
ON Semi
ON 21.10
OpenText OTEX 33.18
PTC
PTC 63.92
Paccar
PCAR 68.19
PacWestBancorp PACW 44.59
s Paychex
PAYX 64.58
PayPal
PYPL 73.43
People'sUtdFin PBCT 18.20
PilgrimPride PPC 34.14
Priceline
PCLN 1726.78
Qiagen
QGEN 30.68
Qorvo
QRVO 76.68
Qualcomm QCOM 65.61
RandgoldRscs GOLD 92.70
RegenPharm REGN 386.30
RossStores ROST 64.61
RoyalGold RGLD 85.13
Ryanair
RYAAY 114.84
SBA Comm SBAC 165.30
SEI Investments SEIC 65.59
Sina
SINA 104.25
SS&C Tech SSNC 39.69
SVB Fin
SIVB 213.74
ScrippsNetworks SNI 79.11
Seagate
STX 37.81
SeattleGenetics SGEN 57.60
Shire
SHPG 140.03
SignatureBank SBNY 130.35
SiriusXM
SIRI 5.38
Skyworks SWKS 108.89
Splunk
SPLK 67.73
Starbucks SBUX 56.70
SteelDynamics STLD 37.02
Symantec SYMC 27.71
Synopsys SNPS 87.63
TD Ameritrade AMTD 49.10
T-MobileUS TMUS 56.69
TRowePrice TROW 94.35
TakeTwoSoftware TTWO 117.37
Tesla
TSLA 311.30
TexasInstruments TXN 96.77
TractorSupply TSCO 62.84
Trimble
TRMB 40.94
21stCenturyFoxA FOXA 28.73
21stCenturyFoxB FOX 27.95
UltaBeauty ULTA 199.99
UltSoftware ULTI 194.97
UnivDisplay OLED 172.85
VEON
VEON 3.82
VeriSign
VRSN 110.42
VeriskAnalytics VRSK 90.83
VertxPharm VRTX 148.66
Viacom B VIAB 24.61
Viacom A VIA 30.75
s Vodafone
VOD 30.70
t WPP
WPPGY 82.64
WalgreensBoots WBA 70.20
s Weibo
WB 111.17
WesternDigital WDC 90.36
WillisTowers WLTW 162.65
Workday
WDAY 106.61
WynnResorts WYNN 151.62
Xilinx
XLNX 70.94
Yandex
YNDX 31.24
ZebraTech ZBRA 104.34
Zillow A
ZG 40.02
Zillow C
Z
39.87
ZionsBancorp ZION 46.50
-0.65
-0.49
1.40
-0.58
-1.03
-0.05
-0.50
-0.04
-0.04
3.51
0.20
3.91
-3.59
-2.13
-0.08
...
-1.36
0.64
-0.03
-4.20
-0.12
-1.71
-0.32
-0.05
-0.36
-0.48
-0.35
-0.79
-1.06
-0.08
-0.10
7.28
-0.17
-1.73
-0.39
0.63
1.50
0.14
-0.83
2.43
-0.23
0.68
-2.25
-0.08
0.46
1.04
0.32
0.40
0.76
-0.67
0.03
-2.32
-0.62
0.07
0.47
-0.39
-0.13
-0.54
0.15
-0.13
-1.51
2.60
-0.19
1.19
-0.36
0.70
0.64
0.94
-3.40
-4.60
0.03
-0.75
-0.28
0.84
0.07
0.80
0.22
-2.38
-0.39
-1.04
-1.22
0.62
-0.86
-1.48
-1.11
-0.01
-0.65
0.74
0.80
0.01
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
49.19
27.40
26.10
31.15
0.69
-0.19
-0.03
-0.17
Dividend announcements from November 15.
Nasdaq lows - 101
-1.1
-0.8
-0.1
1.5
1.1
-0.7
12.4
...
0.2
1.8
5.6
-1.1
-0.4
0.4
-1.0
-0.7
0.4
0.8
15.3
-0.6
-1.0
0.4
1.9
-1.1
-1.8
-1.2
-1.5
-0.8
0.2
0.4
0.4
-0.9
-0.1
2.9
0.3
1.3
-0.9
-0.9
2.0
0.8
-1.3
0.4
...
-0.5
4.4
0.5
1.0
1.6
2.4
3.2
-0.1
-0.7
-0.3
-1.2
-0.4
-1.0
-1.2
0.7
-0.8
-0.1
-0.8
-1.5
-0.5
2.3
-0.6
-1.0
-0.2
0.1
0.2
5.7
14.4
0.9
-1.1
1.0
-1.2
Net
Sym Close Chg
Stock
Dividend Changes
New Highs and Lows |
91.00
53.10
23.24
15.35
42.82
50.85
25.00
44.30
102.14
104.85
24.88
89.58
227.20
16.61
116.21
83.64
26.02
25.70
4.80
91.80
83.38
60.20
11.59
87.95
85.00
66.15
42.67
35.22
85.35
38.10
65.44
34.09
8.88
56.84
107.70
51.65
37.74
98.43
134.03
108.80
57.06
25.70
28.93
50.15
39.05
55.39
11.69
29.46
13.05
0.32
45.45
159.28
71.39
27.76
10.89
92.48
50.11
51.89
52.12
53.93
107.00
122.98
79.65
41.80
27.58
24.95
47.13
27.06
76.94
5.15
9.01
9.13
70.09
36.68
52.22
TE Connectivity TEL 92.77
Telus
TU 37.62
TIM Part
TSU 17.40
TJX
TJX 69.04
TableauSftwr DATA 70.35
TaiwanSemi TSM 41.54
Tapestry
TPR 40.26
TargaResources TRGP 42.32
Target
TGT 54.16
TataMotors TTM 31.41
TechnipFMC FTI 26.50
TeckRscsB TECK 21.21
TelecomArgentina TEO 32.35
TelecomItalia TI
7.96
TelecomItalia A TI.A 6.59
TeledyneTech TDY 178.42
Teleflex
TFX 255.44
TelefonicaBras VIV 14.68
Telefonica TEF 10.00
TelekmIndonesia TLK 30.40
Tenaris
TS 28.38
Teradyne
TER 42.74
TevaPharm TEVA 12.60
Textron
TXT 52.47
ThermoFisherSci TMO 188.51
ThomsonReuters TRI 43.96
ThorIndustries THO 131.99
3M
MMM 227.40
Tiffany
TIF 92.51
t TimeWarner TWX 87.37
s Toll Bros
TOL 46.94
Torchmark TMK 85.37
Toro
TTC 61.63
TorontoDomBk TD 57.10
Total
TOT 54.70
TotalSystem TSS 73.04
ToyotaMotor TM 123.66
TransCanada TRP 49.28
TransDigm TDG 265.15
TransUnion TRU 53.92
Travelers
TRV 133.71
TurkcellIletism TKC 9.16
TurquoiseHill TRQ 3.02
Twitter
TWTR 19.91
TylerTech TYL 170.32
s TysonFoods TSN 76.21
UBS Group UBS 16.98
UDR
UDR 39.40
UGI
UGI 47.89
US Foods USFD 26.46
UltraparPart UGP 21.75
Unilever
UN 56.71
Unilever
UL 55.51
UnionPacific UNP 115.70
t UnitedContinental UAL 57.49
UnitedMicro UMC 2.55
UPS B
UPS 112.89
UnitedRentals URI 143.38
US Bancorp USB 52.01
UnitedTech UTX 117.57
UnitedHealth UNH 209.86
t UniversalHealthB UHS 95.77
UnumGroup UNM 52.89
VEREIT
VER 8.00
VF
VFC 69.63
Visa
V
110.25
VailResorts MTN 226.97
Vale
VALE 9.86
ValeroEnergy VLO 81.48
Vantiv
VNTV 68.97
VarianMed VAR 107.89
Vectren
VVC 66.79
Vedanta
VEDL 18.11
VeevaSystems VEEV 60.29
Ventas
VTR 64.38
Verizon
VZ 44.11
VistraEnergy VST 19.15
VMware
VMW 121.19
VornadoRealty VNO 76.63
VoyaFinancial VOYA 41.42
VulcanMatls VMC 121.56
WABCO
WBC 143.59
s WEC Energy WEC 68.76
W.P.Carey WPC 71.26
Wabtec
WAB 72.89
Wal-Mart WMT 89.83
WasteConnections WCN 70.09
WasteMgt WM 81.73
Waters
WAT 194.84
Watsco
WSO 164.19
Wayfair
W 63.45
WellCareHealth WCG 198.20
WellsFargo WFC 53.75
Welltower HCN 67.74
WestPharmSvcs WST 98.37
WestarEnergy WR 55.40
-0.34
-0.15
-1.46
0.24
-0.64
0.37
-1.60
0.66
0.21
-0.41
-2.87
-0.04
-0.57
-0.08
-0.08
-0.45
-0.28
-0.07
-0.24
-1.09
-0.43
-0.67
-0.04
0.11
0.32
-0.78
0.03
-1.40
-0.44
-0.08
-2.85
-0.83
-0.06
-0.36
-1.21
-0.15
0.01
-0.99
-0.64
-0.69
-0.20
-0.48
-0.31
0.37
0.12
-0.80
0.01
0.50
-0.28
-0.11
-1.23
-0.05
-1.43
-0.15
-0.68
-1.82
0.37
0.02
-0.44
-1.16
-0.23
-3.17
0.65
-0.93
0.72
-0.41
-0.24
-1.68
-0.11
0.01
-1.35
-0.81
-0.39
-0.51
0.88
0.51
-4.25
-0.95
0.23
0.92
-0.67
-0.19
0.55
-0.29
-0.65
-0.31
-1.15
...
-0.86
-0.04
-0.20
0.14
-0.03
0.06
-0.83
0.36
Blackstone GSO Sr Float
Blackstone GSO Sr Float
52-Wk
%
52-Wk
%
WSJ.com/newhighs
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Blackstone GSO Sr Float
BlackstoneGSO LS Cr Inco
FrankFTSEMexico FLMX 24.42 -0.7
BlackstoneGSO LS Cr Inco
FrankFTSETaiwan FLTW 25.14 -0.7
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
BlackstoneGSO LS Cr Inco
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in FrankFTSE UK FLGB 24.56 -0.4 ARC Group
1.83 -10.4
ARCW
BlackstoneGSO Strat Cred
GlbX MLP&Energy MLPX 12.40 -0.3
the latest session. % CHG-Daily percentage change from the previous trading session.
0.52 -12.3
Ability
ABIL
9.08 0.5
GlbX MLP
MLPA
AcaciaComms ACIA 35.36 2.2 BlackstoneGSO Strat Cred
30.28 0.3
GlbXSilverMiners SIL
Wednesday, November 15, 2017
AcadiaHealthcare ACHC 26.92 1.3 BlackstoneGSO Strat Cred
GlbXSuperIncPfd SPFF 12.20 -0.2
52-Wk %
52-Wk %
52-Wk % GSAccessHYCorpBd GHYB 49.25 -0.2 AchieveLifeSci ACHV 1.26 -1.8 Formula Folios Hdg Growth
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg GuggBS2025HYCpBd BSJP 24.38 -0.3 AchillionPharm ACHN 2.95 -17.9 FormulaFolios Income ETF
2.83 -0.3
Advaxis
ADXS
7.80 0.1
8.33 0.8 NordicAmerTankers NAT
Adecoagro
4.03 -0.2 InfraCapMLPETF AMZA
AGRO
0.61 -18.4 Highland/iBoxx Sr Loan
AkersBiosciences AKER
25.00 -0.5 AlcentraCapital
3.20 1.5 NuSTAR PfdB NSpB 24.04 -3.1 Inspire100ETF BIBL
AegeanMarine ANW
7.00 -2.2 Nuveen AZ Quality Muni
ABDC
24.73 -0.2 Alkermes
61.10 4.5 NuSTAREnergy NS
AlaskaAir
ALK
27.92 -1.4 iPathBloomGrainsTR JJG
ALKS 46.43 0.8 Nuveen CA AMT-Free Qual
25.47 ... AllerganPfdA AGNpA 606.96 0.5 NuSTAR GP
AT&T Nts 2066 TBB
14.30 2.9 iShCurHdgMSCIMex HEWW 19.95 -2.1 Amedica
NSH
AMDA 2.95 11.3
Nuveen CA Mun Value Fd 2
19.09 5.5 AllianzGIConv24 CBH
AcornIntl
ATV
8.96 -2.0 NuSTARLogNts NSS
24.62 -0.6 HancockMultiSC JHSC 24.84 -0.2 AmTrustFinSvcs AFSI
8.91 3.3
45.55 -1.0 AmberRoad
AlliantEnergy LNT
6.46 -2.1 NuvCreditStrat JQC
AMBR
8.00 0.6 KraneMSCIChinaEnv KGRN 25.12 -1.6 AquaMetals
2.90 -2.7 Nuveen CA Muni Value
AQMS
101.12 0.4 AnteroMidstream AMGP 16.62 2.1 NuvEMDebt2022 JEMD
Allstate
ALL
9.99 -0.1 NuShEnhYd1-5Y NUSA 24.90 -0.1 AquinoxPharm AQXP 10.20 -0.8 Nuveen CA Muni Value
64.89 -0.8 AnteroMidstream AM
Ameren
AEE
25.74 0.7 NuvEnerMLPTR JMF
9.95 1.2 PwrShSrLoanPtf BKLN 22.96 -0.1 ArcadiaBiosci RKDA
0.22 -7.4 Nuveen CA Quality Muni
77.93 -1.0 ApolloSrFRFd AFT
AEP
AEP
22.19 1.4 ArchrockPtrs
16.10 ... NuvFRIncmFd JFR
10.66 -0.5 ProShrUSUtil SDP
APLP 12.01 -1.1
Nuveen NJ Munl Value Fund
AmericanFin
AFG 106.77 0.3 ArcherDaniels ADM
38.59 -1.3 NuvFR OppFd JRO
2.40 -4.0
10.55 0.7 USAACoreST USTB 50.10 ... AzurRxBioPharma AZRX
AmerWaterWorks AWK 91.39 -1.0 Ardagh
19.55 0.1 NuvHiIncm2020 JHY
ARD
1.55 -10.1 Nuveen NJ Munl Value Fund
BKYI
9.94 -0.3 USAA EM ValMom UEVM 49.35 -0.9 BIO-key
AquaAmerica WTR 37.30 -1.0 BellatrixExplor BXE
2.10 -2.3 NuvMuni2021 NHA
9.29 -2.2 USAA IntlVal UIVM 49.30 -0.6 BMOElkhornDWAMLP BMLP 45.30 -3.2 Nuveen NJ Munl Value Fund
AtmosEnergy ATO
Avangrid
AGR
BeazerHomes BZH
BlkRkCA MT Tr BJZ
CBRE Group
CBG
CMS Energy
CMS
CONSOLEnergyWi CEIXw
CalWtrSvc
CWT
CantelMedical CMD
Carters
CRI
ChinaYuchai
CYD
ConEd
ED
ConstBrands A STZ
Cott
COT
DTE Energy
DTE
DominionEner D
DriveShackPfdB DSpB
DriveShackPfdD DSpD
DriveShack
DS
DukeEnergy
DUK
EdisonInt
EIX
ElPasoElectric EE
EntercomCommsWi ETMw
Entergy
ETR
EvercoreA
EVR
EversourceEner ES
Exelon
EXC
FirstEnergy
FE
Franco-Nevada FNV
GTT Comm
GTT
Gallagher
AJG
GreatPlainsEner GXP
GuggEnhEquFd GPM
Haemonetic
HAE
HanoverIns
THG
HartfordFinSvcsWt HIG.WS
HawaiianElec HE
IDACORP
IDA
Ingredion
INGR
Insperity
NSP
InterXion
INXN
InvestorsRE PfdC IRETpC
KB Home
KBH
MeritageHomes MTH
MetropolitanBk MCB
MichaelKors
KORS
MiXTelematics MIXT
NRG Energy
NRG
NamTaiProperty NTP
NewIrelandFundRt IRLr
NewJerseyRscs NJR
NextEraEnergy NEE
NextEraEnergyUn NEEpQ
NiSource
NI
PIMCO IncmStrFdII PFN
PinnacleWest PNW
PortlandGenElec POR
Progressive
PGR
PublicServiceEnt PEG
RobertHalf
RHI
Salesforce.com CRM
SempraEnergy SRE
Spire
SR
Square
SQ
SummitHotelPfdD INNpD
SummitHotelPfdE INNpE
Toll Bros
TOL
TwoHarborsPfdB TWOpB
TysonFoods
TSN
Valhi
VHI
Verso
VRS
Vonage
VG
WEC Energy WEC
Weyerhaeuser WY
XcelEnergy
XEL
Net
Sym Close Chg
Stock
Dec29 /Dec21
Jan31 /Dec29
Feb28 /Feb21
Dec29 /Dec21
Jan31 /Dec29
Feb28 /Feb21
Dec29 /Dec21
Jan31 /Dec29
Feb28 /Feb21
Nov20 /Nov16
Nov20 /Nov16
Nov30 /Nov16
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
NXJ
NYV
NYV
NNY
NAN
NUO
NPN
NPN
NPN
NQP
NQP
NTX
OASI
ONTL
OUSM
OEUR
OUSA
Amount
Yld % New/Old Frq
5.1
3.8
3.8
3.8
5.0
4.5
3.7
3.7
3.7
5.2
5.2
4.3
2.8
2.7
2.7
3.4
2.7
.0028
.0272
.106
.0034
.0055
.0371
.0213
.171
.008
.0038
.0017
.0035
.0684
.05969
.05991
.06876
.06874
Payable /
Record
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Dec01 /Nov24
Nov21 /Nov16
Nov21 /Nov16
Nov21 /Nov16
Nov21 /Nov16
Nov21 /Nov16
M
M
M
M
M
Stocks
Alcobra
1:7
ADHD
/Nov15
Foreign
Algonquin Power
Atlantica Yield
DHX Media Var Voting
Highway Holdings
Itau Unibanco Holding ADR
James Hardie Indus ADR
Orange ADR
Vodafone Group ADR
AQN
AY
DHXM
HIHO
ITUB
JHX
ORAN
VOD
4.3
4.9
2.1
6.7
0.4
1.3
3.6
3.7
.1165
.29
.01577
.06
.00455
.10
.29395
.56416
Q
Q
Q
Q
M
SA
SA
SA
Jan12 /Dec29
Dec15 /Nov30
Dec18 /Nov28
Dec22 /Dec08
Jan12 /Dec04
Feb23 /Dec13
Dec28 /Dec04
Feb02 /Nov24
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
November 15, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Inflation
Oct. index
level
Chg From (%)
Sept. '17 Oct. '16
U.S. consumer price index
246.663
253.638
All items
Core
–0.06
0.28
2.0
1.8
International rates
Latest
Week
ago
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.1700
1.3125
1.0300
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
Treasury bill auction
1.045 1.035 1.300 0.305
1.240 1.185 1.240 0.480
1.360 1.300 1.360 0.590
4 weeks
13 weeks
26 weeks
Secondary market
1.15
1.29
1.38
3.459 3.428 3.865 3.253
3.479 3.448 3.899 3.281
0.15
Latest
U.S. government rates
1.75
1.75
1.75
1.00
1.29
1.32
1.32
0.67
Libor
One month
Three month
Six month
One year
1.26600
1.42190
1.61810
1.88622
1.24606
1.40981
1.60162
1.87317
1.26600
1.42190
1.62208
1.89261
0.55456
0.90872
1.27433
1.60456
-0.399
-0.379
-0.317
-0.251
-0.400
-0.378
-0.314
-0.236
-0.376
-0.325
-0.217
-0.080
-0.405
-0.381
-0.322
-0.251
Euro Libor
One month
Three month
Six month
One year
One month
Three month
Six month
One year
Week
ago
3.00
3.00
52-Week
high
low
3.00
-0.372
-0.329
-0.275
-0.192
Latest
-0.372
-0.329
-0.276
-0.191
Value
Traded
-0.366
-0.311
-0.214
-0.073
-0.375
-0.332
-0.276
-0.192
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
Call money
Discount
—52-WEEK—
High Low
Euro interbank offered rate (Euribor)
30-year mortgage yields
30 days
60 days
90 days
Other short-term rates
Overnight repurchase
U.S.
Effective rate
High
Low
Bid
Offer
Week
Latest ago
Commercial paper (AA financial)
Federal funds
Fannie Mae
Policy Rates
Euro zone
Switzerland
Britain
Australia
—52-WEEK—
High Low
1.288 27.000 1.366 0.244
1.303 108.436 1.506 0.257
Open Implied
Settle Change Interest Rate
2.25
DTCC GCF Repo Index Futures
IPO Scorecard
Performance of IPOs, most-recent listed first
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
SendGrid
SEND Nov. 15/$16.00
Bandwidth
BAND Nov. 10/$20.00
Erytech
ERYP Nov. 10/$23.26
18.00
12.5
...
20.04
0.2
–5.4
25.64
10.2
3.6
PPDAI Grp
PPDF Nov. 10/$13.00
12.70
–2.3
Apellis Pharmaceuticals 13.83
APLS Nov. 9/$14.00
–1.2
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
Sogou
SOGO Nov. 9/$13.00
CBTX
CBTX Nov. 8/$26.00
Four Seasons Edu
FEDU Nov. 8/$10.00
12.69
–2.4
–6.0
28.68
10.3
–0.1
9.82
–1.8
3.4
–2.9
InflaRx
IFRX Nov. 8/$15.00
14.85
–1.0
–0.9
–1.4
Metropolitan Bank
MCB Nov. 8/$35.00
38.74
10.7
4.1
Sources: WSJ Market Data Group; FactSet Research Systems
Treasury Nov
Treasury Dec
Treasury Jan
98.800 -0.015 8937 1.200
98.670 -0.015 2069 1.330
98.565 -0.015 450 1.435
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.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Thursday, November 16, 2017
* *
THE WALL STREET JOURNAL.
BANKING & FINANCE
Bank’s shift to federal
charter amid state
investigation raises
oversight concerns
BY RYAN TRACY
Japan’s biggest bank sidestepped a New York investigation into its compliance with
U.S. sanctions regulations, kicking state bank examiners out of
a Manhattan branch the same
day it switched from a state
charter to a federal one, according to a state regulator’s letter.
The federal Office of the
Comptroller of the Currency
approved the conversion from
a state license for Bank of Tokyo Mitsubishi UFJ, a unit of
Japan-based Mitsubishi UFJ
Financial Group, on Nov. 7,
prompting an angry letter
from New York regulators.
The license conversion was
a “precipitous action,” according to a letter to the OCC from
the New York Department of
Financial Services, taken with
a week’s notice and “without
the full factual record of [the
bank’s] compliance deficiencies.”
The New York regulator
says it still has authority over
the bank, which has challenged that assertion in court.
The OCC move raises concerns about “regulatory arbitrage,” in which banks switch
supervisors to seek easier
oversight, according to the letter from the state agency,
which is led by New York Superintendent of Financial Services Maria Vullo.
An OCC spokesman said “the
decision to operate under a
state or federal charter is a
business decision by the bank”
and MUFG met the standards
for converting its license. OCC
supervisors, who have taken actions against banks for sanctions violations in the past, are
overseeing the branch. The
agency has ordered the firm to
follow requirements that are
“substantively identical” to
those it faced from the state
regulator, he said.
“Consolidating regulatory
oversight under one primary
regulator…is more effective
and is consistent with the regulation of other institutions of
similar scale,” the bank said in
a statement, adding, “we have
been working diligently to
comply” with the state regulator’s orders and “we will complete all of the remaining remediation actions required.”
To be sure, other foreignowned banks have recently
consolidated their U.S. footprints, as U.S. regulators pres-
ANDREW HARRER/BLOOMBERG NEWS
Mitsubishi UFJ Skirts New York Probe
U.S. acting Comptroller of the Currency Keith Noreika has been implementing a deregulatory agenda.
sure them to simplify their legal structures.
When the MUFG New York
branch converted its license,
Ms. Vullo’s department was
preparing to reprimand the
firm over concerns it wasn’t
doing enough to scrutinize
whether clients are evading
U.S. sanctions targeting countries such as Iran and North
Korea, the letter said. The
bank was fined a total of $565
million in 2013 and 2014 for
similar issues.
The bank expelled state supervisors from the branch on
Manhattan’s Avenue of the
Americas on Nov. 7, the day of
the license conversion, according to the letter. The supervisors hadn’t finished an examination
of
the
bank’s
compliance programs, but the
bank was aware they had concerns, according a person familiar with the matter.
MUFG has significant U.S.
operations, including California-based MUFG Union Bank,
which is regulated by the OCC.
Keith Noreika, a former
banking lawyer who has been
implementing a deregulatory
agenda since he became acting
leader of the OCC in May,
counts MUFG as a former client. His status as a temporary
government employee has
raised bipartisan concerns because it allows him to skirt
ethics restrictions that would
normally apply to someone in
his position.
Mr. Noreika wasn’t involved
in the MUFG license decision,
the OCC spokesman said, adding that the comptroller recused himself “out of an abundance of caution because he had
represented MUFG on a similar
matter.” The spokesman didn’t
answer a question about the nature of the “similar matter.”
This week may be Mr. Noreika’s last on the job if the
Senate takes an expected vote
on President Donald Trump’s
permanent nominee for comptroller, former banker Joseph
Otting.
Tensions between federal
and state bank regulators have
a long history in the U.S. The
two groups share oversight authority, and banks can choose
their primary regulator through
a web of licensing rules. Regulatory agencies also may win or
lose funding depending on the
banks they oversee, creating an
incentive for them to expand
and defend turf.
To prevent banks from
gaming the system, regulators
have promised to consult one
another when a bank wants to
switch its supervisor. That
process is supposed to take
into account whether a bank
has outstanding issues with its
current regulator.
West Face Seeks
To Stop Rival
MATTHEW BUSCH/BLOOMBERG NEWS
BY JACQUIE MCNISH
AND ROB COPELAND
A Royal Dutch Shell rig near Mentone, Texas. Guidance from producers in Texas and North Dakota is helping lift oil prices.
Signs of Tightening in Energy Emerge
BY ALISON SIDER
Oil traders and analysts
have traced the market’s recovery to signs of tighter supply and a return of geopolitical tensions.
But many are also pointing
to rising confidence that U.S.
shale producers won’t endlessly ramp up production.
For the past three years,
earnings reports from shale
companies often contributed
to lower oil prices, as investors feared an onslaught of
output from wells would hit an
already bloated market.
Now, guidance from producers in Texas and North Dakota is helping lift oil prices
out of a trading range. Investors hope that companies will
be more disciplined about
pumping for massive volumes
of oil, removing an overhang
that has consistently weighed
on prices in recent years.
From mid-2014 through August, oil has tumbled by an average of 2.2% during earnings
periods when U.S. producers
touted the ability to slash costs
and deploy new technologies
to produce more crude, data
from Barclays PLC and The
Wall Street Journal show. But
in the most recent earnings
season, oil prices rose more
than 4%, data compiled by the
Journal show. This week,
though, oil prices have slipped.
Prices fell 2.5% Tuesday and
Wednesday to $55.33 a barrel—
their largest two-day decline in
two months. The move lower
came as the International Energy Agency revised its demand forecast down and the
U.S. Energy Information Administration reported that
crude inventories unexpectedly
increased by 1.9 million barrels.
Shale Bump
Earnings reports from shale producers have contributed to declines in
oil prices. That changed recently on signs producers will be more
measured about output.
Oil price, change from previous quarter
20%
15
10
5
0
–5
–10
–15
2014
’15
’16
’17
Sources: WSJ Market Data Group (2Q, 3Q 2017); Barclays (historical)
THE WALL STREET JOURNAL.
The EIA also reported that
U.S. oil production rose to a
weekly record of 9.645 million
barrels a day. But the EIA’s final
monthly production data has
frequently turned out to be
lower than these preliminary
weekly figures—one of the reasons that investors have questioned whether shale companies
can continue ramping up output.
Companies are saying, “even
if we get some upside in the
commodity, we’re not going to
plow that into the ground—
we’re going to remain disciplined,” said Gordon Douthat,
an analyst at Wells Fargo.
Oil-market participants like
the sound of that. A growing
chorus of investors are pushing shale companies to rein in
spending, and rising costs
have made it harder for these
companies to ramp up quickly.
Marathon Oil Corp., for example, told investors this
month that it is making plans
for next year based on oil
prices of about $50. Even if
prices rise and the company
finds itself with extra cash,
quick boosts to output won’t
be on the top of the to-do list,
the company said.
“It’s going to come back to
those high-level priorities,
starting with making sure that
we protect and support an investment-grade balance sheet
through continued gross debt
reduction,” Chief Executive
Lee Tillman said on a call with
analysts.
If the producers take a more
disciplined approach, they will
be less likely to react to shortterm price increases, said
Christopher Burton, senior
portfolio manager at Credit
Suisse Asset Management.
There are already indications that shale production
isn’t as buoyant as some had
expected. The number of rigs
drilling for oil has plateaued—
it stood at 738 rigs as of Friday, 30 fewer than in August.
And rising costs could result in a more measured pace
of growth. Services companies
like Halliburton Co. and
Schlumberger Ltd. are raising
prices. Bottlenecks in availability of labor and equipment
are emerging.
Some investors say shale
producers won’t be able to
fully take advantage of oil’s
rise. Producers use longer-term
contracts to lock in prices, and
those prices aren’t rising as
quickly as near-term prices—a
market condition that often
arises when supplies tighten.
To be sure, shale companies
are pumping more oil.
Even those companies that
say they will rein in spending
are still projecting that production levels will rise. Parsley Energy, one of the most
prolific Permian drillers, has
said it plans a “more measured development pace” next
year and isn’t putting more
rigs to work in the next six to
eight months. Still, it anticipates that its output will grow
by as much as 50% in 2018.
Goldman Sachs analysts expect U.S. output will grow by
800,000 to 900,000 barrels a
day if oil prices average $55
next year, noting that companies are becoming more efficient—producing more oil
with less spending—and services costs haven’t gone up
enough to slow down drilling.
Perhaps most important, capital markets are still open to
these companies.
But others say that even if
shale producers keep pumping,
it won’t be enough to knock the
market from its bullish perch.
A group of 18 U.S. exploration and production companies
reported output about 1%
higher than the end of last
year, according to Morgan
Stanley—“hardly the runaway
growth that overwhelms the
oil market,” the analysts noted.
West Face Capital Inc. filed
a motion with an Ontario
court seeking an order to stop
Israeli intelligence firm Black
Cube from continuing alleged
attempts to covertly obtain
confidential information from
the Toronto firm’s former and
current employees.
In a motion filed with the
Ontario Superior Court of Justice, private-equity firm West
Face alleged its rival in a longstanding legal dispute, Catalyst
Capital Group Inc., hired Black
Cube to approach some of its
former and current employees
to obtain company secrets, including information about the
legal battle. Black Cube employees used false names, businesses, websites, LinkedIn profiles and business cards to lure
current and former staff to
meetings, the motion alleged.
West Face asked the court
to order Catalyst, Black Cube
and others to preserve all records relating to the matter.
A person familiar with the
matter said Black Cube was investigating West Face on behalf of another client and that
Catalyst wasn’t a client.
A representative for Catalyst didn’t return requests to
comment. In a statement,
Black Cube said: “It should be
highlighted that Black Cube
applies high moral standards
to its work, and operates in
full compliance with the law of
any jurisdiction in which it operates—strictly following the
guidance and legal opinions
provided by leading law firms
from around the world.”
Last week, The Wall Street
Journal reported that an operative of Black Cube had met
with critics of New York insurance firm AmTrust Financial
Services Inc. The operative
had been granted the meetings
by purporting to be an overseas consultant and dangling
enticing work offers. After-
ward, however, the critics discovered the operative wasn’t
who they said they were.
An AmTrust spokeswoman
didn’t respond to questions to
last week’s Journal article. The
firm said in the past it hired
Black Cube to investigate a former Italian business partner,
but it has denied hiring the
firm or any private investigators to probe its U.S. critics.
The battle between West
Face and Catalyst dates back to
2014 when West Face won a bidding war for Toronto wireless
carrier Wind Mobile Corp. Catalyst, a losing bidder, sued West
Face alleging improper conduct
in the takeover contest. An Ontario Judge dismissed the case
last year, ruling against what
the judge called a “hardball” le-
The battle dates back
to 2014 when West
Face lost in a telecom
bidding war.
gal attack lead by Catalyst Chief
Executive
Newton
Glassman. Catalyst has appealed.
This year, the Journal reported at least four individuals had filed whistleblower
complaints with regulators alleging fraud at Catalyst and its
publicly traded lending arm,
Callidus Capital Corp., according to people familiar with the
matter and documents reviewed by the Journal.
Callidus and Catalyst last
week sued Dow Jones & Co.,
the owner of The Wall Street
Journal, and Journal reporters
Rob Copeland and Jacquie McNish for defamation over the
article, and named Mr. Copeland as one of several co-defendants in the West Face lawsuit. A Journal representative
has said the news organization
is “confident in the fairness
and accuracy” of its reporting.
Square Tries Out Bitcoin
With Some of Its App Users
BY PETER RUDEGEAIR
Square Inc. is the latest firm
to jump on the bitcoin bandwagon.
A spokesman for the San
Francisco-based said Wednesday it is allowing a “small number” of users of Square Cash,
its mobile money-transfer service, to buy bitcoin directly
from its smartphone app.
“We believe cryptocurrency
can greatly impact the ability
of individuals to participate in
the global financial system, and
we’re excited to learn more,”
the spokesman said in a statement. He declined to discuss if
and when the pilot program
would be expanded to all users.
Square will hold the bitcoins
that Square Cash users purchase, similar to the way that it
holds the cash balances in
Square Cash accounts, according to a person familiar with
the matter. Square Cash users
will be able to hold or sell their
bitcoin on the platform, but
won’t be able to send bitcoin to
one another or use it to buy
goods or services at places
where the mobile wallet is accepted, the person added.
Word of the experiment began spreading on social media Tuesday night, and late
Wednesday bitcoin traded up
more than 10% at about $7,293,
according to digital-currencies
news site CoinDesk.
—Paul Vigna
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.
Thursday, November 16, 2017 | B13
* * * *
MARKETS
U.S. government bond
prices climbed Wednesday, as
investors shed stocks from the
U.S. to Europe while scooping
up assets seen as safe.
The yield on the benchmark
10-year U.S. Treasury note settled at 2.335%,
CREDIT
compared with
MARKETS 2.381% Tuesday.
Yields fall as
bond prices rise.
Treasury yields fell overnight, then held on to their declines after Labor Department
data showed that consumer
prices rose only slightly in October. The report was the latest indication that inflation
continues to run at a tepid
pace this year even as other
measures of economic activity
pick up.
Bonds had been treading
water ahead of Wednesday’s
economic report, with many
investors saying a strongerthan-expected inflation reading could push the Federal Reserve to consider raising
interest rates more quickly.
With the consumer-price index rising just 0.1% in October
from a month earlier and real
average hourly earnings declining for a third straight
month, there was little to suggest an acceleration in inflation that might pose a threat
to bonds, analysts said.
Inflation tends to weigh on
government bonds by chipping
away at the purchasing power
of their fixed payments.
“We’ve had a good amount
of positive economic data out
there—GDP, the jobs report,
business investment—but low
inflation has really been holding down the longer end of the
curve,” said Renuka Kumar, director, portfolio management,
at SVB Asset Management.
A broad retreat from stocks
also helped push bonds higher
Wednesday, analysts said.
Major indexes in Asia closed
mostly lower, while stocks in
Europe notched their seventh
consecutive session of declines
and the S&P 500 and Dow
Jones Industrial Average finished lower, too.
In recent days, investors
and analysts have attributed
the pullback from stocks to uncertainty over the prospects of
a U.S. tax overhaul, renewed
weakness in commodity prices,
and a lack of fresh catalysts
for gains following the peak of
the third-quarter earnings reporting season. Treasurys,
which are viewed as safer than
stocks, often strengthen when
investors pull back from riskier assets.
Gold Falls
As Dollar
Rebounds
BY IRA IOSEBASHVILI
Gold prices reversed gains,
following a rebound in the
dollar.
Gold for November delivery
fell 0.4%, to settle at $1,276.50
a troy ounce, on the Comex division of the New York Mercantile Exchange on Wednesday.
The ICE Dollar Index
bounced from three-week lows
and was unchanged for the
day. A rising dollar tends to
weigh on gold, which is denominated in the U.S. currency
and becomes more expensive
to foreign investors when the
dollar appreciates. Stocks initially pared losses, but fell
later in the day, with the S&P
500 finishing down 0.6%.
Peter Hug, global trading
director at Kitco Metals, said
some investors may have sold
gold holdings to raise funds
for buying the dip in U.S.
stocks.
When stocks fall, “traders
often start selling their most
liquid assets to generate
cash…and few assets are more
liquid than gold,” he said.
A more pronounced selloff
could eventually boost gold,
which is a popular destination
for investors during periods of
market turmoil.
In base metals, copper for
November delivery lost 0.4%,
to $3.0490 a pound.
Moscow restructures
over $3 billion it is
owed by its troubled
ally Venezuela
BY JAMES MARSON
AND KEJAL VYAS
MOSCOW—Russia threw a
lifeline to Venezuela on
Wednesday, restructuring the
more than $3 billion it is owed
by its economically and politically troubled South American
ally.
The Russian Finance Ministry said the debt of $3.15 billion would now be repaid over
10 years, with minimal repayments during the first six
years.
“Reducing the debt burden
to the republic from the restructuring of liabilities will
allow the funds that have been
freed up to be allocated to the
country’s economic development, to improve the liquidity
of the debtor, and to increase
the chances of all creditors to
recoup credits provided to
Venezuela,” the Russian Finance Ministry said in a statement.
The agreement comes just
as Venezuela’s cash-strapped
government teeters on the
edge of a default on some $150
billion in outstanding debt.
Struggling with a crumbling
state-led economic model,
President Nicolás Maduro’s administration is seeking to renegotiate payment terms with
its creditors in an effort to
RODRIGO ABD/ASSOCIATED PRESS
BY AKANE OTANI
Russia Offers Caracas Debt Relief
The deal comes as Venezuela’s government is teetering on the edge of a default on some $150 billion in debt. A Caracas market.
free up import dollars needed
to resolve chronic shortages of
food and medicine.
“Venezuela is advancing toward the recomposition of its
external debt, to the benefit of
its people,” Mr. Maduro’s top
economic adviser, Simon
Zerpa, said in a Twitter post,
lauding the deal with Russia.
Venezuelan officials said
the agreement would allow
them to increase imports from
Russia,
including
of
wheat. The restructuring
deal Wednesday doesn’t cover
$6 billion in debt that state
energy giant Petróleos de
Venezuela SA, or PdVSA, still
owes to Russia.
PdVSA, the lifeblood of Venezuela’s oil-dependent economy, on Wednesday said it
made an interest payment on a
bond that matures in 2027.
The $80 million was originally
due on Oct. 12 but had become
one of several bond payments
that the government has fallen
behind on since last month,
raising concerns of an imminent default.
Venezuela over the past decade has turned to allies like
Russia for economic support
as Caracas aimed to distance
itself from its ideological foes
in Washington. Loans and
credits from Russian statecontrolled oil giant PAO Rosneft to PdVSA have been vital
for the South American country, which has seen oil production fall and its economy
shrink by one-third since 2014,
according to the International
Monetary Fund.
Mr. Maduro has blamed his
country’s financial troubles on
a series of sanctions leveled by
the Trump administration earlier this year and has turned to
his allies, especially Russia and
China, for breathing space.
“We believe that the Venezuelan government and people
are capable of properly handling their debt issues,” a
China
Foreign
Ministry
spokesman said Wednesday.
XU CONGJUN/IMAGINECHINA/ASSOCIATED PRESS
Inflation
Data Give
Treasurys
A Boost
A copper plant in China, the world’s largest metals consumer. Prices of copper and other industrial metals are down after that country reported slower industrial output.
S&P 500 Slumps as Investors Reduce Risk
BY AMRITH RAMKUMAR
AND RIVA GOLD
The S&P 500 posted its biggest drop since early September as investors dialed back
on riskier assets.
The index shed 0.6%, a relatively modest decline, but the
S&P had managed to avoid a
loss of 0.5%
WEDNESDAY’S or more for
MARKETS
50 straight
sessions.
The
last
time the index went that long
without a daily fall of that
magnitude was 1965, according to the WSJ Market Data
Group.
Investors have enjoyed a
broad run-up in markets
around the world this year
that has sent major stock indexes to records and prices of
oil and raw materials to multiyear highs. Declines are natural after such a strong rally
and the peak of earnings season, some investors and analysts said.
“We’re just due for some
kind of a slowdown,” said Bob
Phillips, managing principal at
Spectrum Management Group.
“I don’t think there’s anything
in the cards that suggests this
is going to turn into a major
pullback.”
The Dow industrials fell
138.19 points, or 0.6%, to
23271.28 and the S&P 500 declined 14.25 points to 2564.62.
Both indexes have fallen in
four of the past five sessions
and notched their biggest
losses since Sept. 5 on
Wednesday. The Nasdaq Composite shed 31.66 points, or
0.5%, to 6706.21.
Although falling commodity
prices and doubts about a tax
overhaul have weighed on major indexes recently, Steven
Chiavarone, assistant vice
president and portfolio manager at Federated Investors,
said the earnings and economic backdrop for stocks is
still favorable moving forward.
“It’s hard for us not to continue to be in buy-the-dip
mode here,” he said.
Stocks have tended to rebound quickly from declines
this year, with many investors
taking pullbacks as an opportunity to buy into a market
Broad Declines
The Dow industrials, S&P 500 and Nasdaq Composite
extended recent losses Wednesday.
0%
Performance, minute by minute
–0.2
–0.4
Nasdaq
Composite
t0.5%
–0.6
S&P 500
t0.6%
–0.8
Dow Jones
Industrial
Average
t0.6%
–1.0
–1.2
10
11
noon
1
Source: Thomson Reuters
that has risen steadily this
year.
U.S. crude fell 0.7% to
$55.33 a barrel, extending this
week’s losses, after data from
the U.S. Energy Information
Administration showed an unexpected increase in crude-oil
stockpiles.
The S&P 500 energy sector
2
3
4
THE WALL STREET JOURNAL.
declined 1.2%.
Prices of copper and other
industrial metals also continued to fall after data earlier
this week showed Chinese industrial output and fixed-asset
investment growth slowed in
October. China is the world’s
largest metals consumer.
Treasury yields held on to
declines after data showed
U.S. consumer prices rose only
slightly in October, a sign that
stubbornly soft inflation is
persisting.
The yield on the 10-year
U.S. Treasury note fell to
2.335% from 2.381% Tuesday.
Yields fall as bond prices rise.
Shares of Target fell $5.93,
or 9.9%, to $54.16 after the
discount
retailer
posted
higher quarterly sales but said
profit fell and gave a disappointing earnings outlook for
the holiday period. Competitor
Wal-Mart Stores is scheduled
to report before the market
opens Thursday.
Elsewhere, the Stoxx Europe 600 notched a seventh
straight day of losses, dropping 0.5% Wednesday to its
lowest level in almost two
months. European earnings
have lagged behind other regions this quarter, which analysts largely attribute to this
year’s strength in the euro.
Japan’s Nikkei Stock Average shed 1.6% in its biggest
daily fall since March. At the
midday break Thursday, the
Nikkei was up 0.8%.
Carlyle, Vitol Weigh IPO of Europe’s Varo Energy
BY BEN DUMMETT
AND SARAH KENT
Varo Energy BV’s owners,
including U.S. private-equity
giant Carlyle Group and commodities trader Vitol Group,
are considering an initial public offering next year that
could value the European oil
refiner around $2 billion, according to people familiar with
the matter.
The IPO plan comes as Europe’s oil refineries have enjoyed a few bumper years, after a fall in oil prices and
strong demand for refined
products, such as gasoline and
diesel, combined to boost
profits.
By contrast, when Carlyle
acquired half of Varo in 2013,
the sector was struggling. The
company originated in 2012
when Vitol bought a refinery
in Cressier, Switzerland, from
bankrupt refiner Petroplus.
Varo expanded its footprint
through a string of acquisitions, helping it build out a
storage and distribution network in northwest Europe.
Varo, which is working with
a group of global investment
banks on the planned IPO,
owns and operates the Cressier refinery and holds a 45%
stake in the Bayernoil facility
in Germany. Together those
plants have refining capacity
of 160,000 barrels a day and
service markets in Benelux,
France, Germany and Switzerland, according to the company’s website. The operations
produce a range of products
from jet fuel to fuel used to
heat asphalt for road construction.
The Zug, Switzerland-based
company also operates more
than 140 retail service stations
in the Netherlands and has
been expanding its retail activities in Germany.
The IPO, if it proceeds,
would underscore a broader
bet by owners of downstream
and midstream companies that
the operations will appeal to
investors because of the
steadier earnings they typically generate over oil-and-gas
producers.
Service stations also have
the opportunity to boost revenue from sales of the convenience stores they operate on
site. That relative stability and
growing revenue stream allows the companies to pay a
significant dividend.
Carlyle acquired a 50%
stake of Varo in 2013 through
Carlyle International Energy
Partners for an undisclosed
amount, joining forces with Vitol to expand the energy midstream company across northwest Europe. Reggeborgh, a
Dutch private investment
company, joined the ownership
group in 2015 as part of Varo’s
merger with Argos.
Varo is expected to list its
shares on the Amsterdam
stock exchange, according to
the people familiar with the
matter.
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
B14 | Thursday, November 16, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Oil Drops Amid Record U.S. Production
Hopes that OPEC
would extend a deal
curbing production
had supported prices
Investors focused again on bearish risks, like an oversupplied market and a rise in U.S. output,
despite the climb in prices in the last month as tensions escalated in the Middle East.
BY STEPHANIE YANG
Oil prices fell Wednesday,
as increasing crude stockpiles
and record U.S. production reignited worries about an oversupplied market.
Light, sweet crude for December delivery lost 37 cents,
or 0.7%, to $55.33 a barrel on
the New York Mercantile Exchange, closing near a twoweek low. Brent, the global
benchmark, fell 34 cents, or
0.5%, to $61.87 a barrel.
On Wednesday, the U.S. Energy Information Administration reported that crude inventories rose by 1.9 million
barrels in the week ended Nov.
10, a surprise build compared
with analyst forecasts. Traders
and analysts surveyed by The
Wall Street Journal expected
crude stockpiles to decline by
1.4 million barrels on average
last week.
The second consecutive
week of rising stockpiles highlighted concerns that as oil
has rallied, U.S. shale producers have increased output to
take advantage of the higher
prices.
According to the EIA, domestic production rose to a
weekly high last week of 9.645
million barrels.
“The biggest factor is U.S.
oil production hit a new record this week,” said Kyle Cooper, a consultant at ION Energy Group. “It’s not a surprise
to anybody, but it is a reality.”
The threat of higher shale
production kept a lid on oil
prices for much of 2017, but
investors have recently become more optimistic on the
market. Global and U.S. inventory levels have come down,
and geopolitical risks have
added supply uncertainty to a
seemingly tighter market.
Nov. 4
Saudi Arabia crackdown
Oil has retreated from two-year highs...
June 20
Oil enters bear market
Aug. 25
Hurricane Harvey
makes landfall
Sept. 25
Oil enters
bull market
45
A second consecutive
week of rising
stockpiles highlighted
oversupply concerns.
40
June
July
August
September
October
November
...as U.S. shale producers
have increased their output...
...and crude oil in storage has been
higher than expected...
...threatening bullish futures
positions in the market.
10 million barrels a day
600 thousand barrels a day
300 thousand contracts
500
250
400
200
300
150
200
100
100
50
8
6
4
2
0
0
June
July
Aug.
Sept.
Oct.
Nov.
0
June
July
Aug.
Sept.
Oct.
Nov.
June
Sources: WSJ Market Data Group (oil prices); U.S. Energy Information Administration (U.S.
crude production and inventory); Commodity Futures Trading Commission (contracts)
Hedge funds and other
speculative investors are more
bullish than they have been in
more than six months, according to data from the Commodity Futures Trading Commission.
As of Nov. 7, long positions
in crude oil outnumbered
short positions by 317,806 contracts, the highest since April
18.
As prices rise, “that can
only encourage more and more
U.S. production coming on
board,” said Tariq Zahir, man-
July
Aug.
Sept. Oct.
Nov.
THE WALL STREET JOURNAL.
aging member of Tyche Capital Advisors. “As we go into
next year I think that will be
the biggest problem coupled
with the exit strategy from
OPEC.”
The perception that the Organization of the Petroleum
Exporting Countries will extend a deal limiting oil production through March 2018
has helped support oil prices
over the past few months.
OPEC, along with several
other major producers including Russia, first agreed a year
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Tencent Hits Another High Score
Next Level
Tencent ADRs*
$50
45
40
35
30
25
20
2017
*American depositary receipts
THE WALL STREET JOURNAL.
Tencent’s mobile game
‘Honor of Kings’
hit “Honor of Kings,” which
allows teams of players to
battle one another online
with historical Chinese characters, had raked in almost
$1 billion of revenue last
quarter, according to consulting firm Pacific Epoch.
Another hit could be coming.
Tencent is launching a mobile game called “Glorious
Mission,” a “Hunger Games”style survival game that is
cloning “PlayerUnknown’s
Battlegrounds,” the hottest
videogame this year.
Tencent’s other businesses
are doing well, too, though
they got overshadowed by
its core game business,
which earns much higher
margins.
Sources: FactSet; Getty Images (photo)
Advertising revenue rose
48% as it owns WeChat,
China’s most popular social
network with nearly one billion monthly active users.
Revenue from its other segments, which include its mobile-payment and cloud businesses, has more than
doubled. Tencent’s mobilepayment system, Tenpay, has
been winning market share
from market leader Alipay,
owned by Alibaba Group
Holding’s finance affiliate, as
it is more popular to use in
bricks-and-mortar stores.
Tenpay’s offline payment
volume almost quadrupled
last quarter.
Tencent trades at 40
times next year’s expected
earnings, much higher than
the five-year average of 32.
But analysts will likely revise
their estimates up after
Wednesday’s results.
As long as Tencent plays
the game well, investors will
keep going along.
—Jacky Wong
Prices Are Right for Consumers and Fed
Low inflation might be a
worrying puzzle for the Federal Reserve, but it is also
putting more spring in consumer spending. That will
make it easier for the central
bank to raise rates again
when it meets next month.
The Labor Department released its October report on
consumer prices Wednesday,
and, no surprise here, they
showed inflation remained
remarkably cool. Overall,
prices gained just 0.1% from
a month earlier, putting
them up a scant 2% from a
year earlier. The core index,
which excludes food and energy prices, was up just 1.8%
on the year.
Economists at the Fed and
elsewhere think inflation is
going to pick up over the
next year. How could it not,
Oct. 16
Iraqi-Kurdish clash
50
Email: heard@wsj.com
The world’s biggest videogame company knows how
to get players addicted, and
it is paying off for shareholders.
China’s Tencent Holdings
reported Wednesday nearly
70% growth in net profit for
the last quarter, with sales
up 61%. Both sales and profit
handily beat analyst estimates compiled by S&P
Global Market Intelligence.
Tencent’s shares have doubled this year, pushing its
market capitalization close
to the half-trillion-dollar
mark, and there are no signs
the behemoth is slowing
down. In fact, revenue
growth for the last quarter
was the fastest since 2010,
when it was less than onetenth of the current size.
The main driver? Games,
which account for half of
Tencent’s revenue, and mobile games, in particular, in
which revenue nearly doubled from a year ago.
Tencent’s mobile smash
$55
a barrel
ago to reduce production by
1.8 million barrels a day from
peak October 2016 levels, with
the aim of alleviating global
oversupply and boosting
prices.
The deal participants are
set to convene in Vienna on
Nov. 30 to assess the progress
of the deal and debate the
possibility of an extension.
Traders said the rise in oil
prices likely already reflects
the belief that OPEC will take
further action to curb supply
at the meeting.
Demand prospects have
also dimmed this week, further weighing on the market.
Steady Going
Retail sales, excluding gasoline
stations, change from a year earlier
6%
4
2
0
2016
’17
Source: Commerce Department
with the unemployment rate
so low, the dollar weaker
and the global economy
humming? The problem is
that people have been waiting for inflation for a while,
often arguing that temporary
factors are keeping it down.
For some at the Fed that
counts as reason to hold off
on raising rates.
But most Fed policy makers believe the economy is
performing well enough to
handle a continued gradual
drift up in interest rates. October retail sales figures,
also released Wednesday, underscore that view.
The Commerce Department said that retail sales
rose 0.2% in October from a
month earlier, and it revised
September sales higher. The
report showed that, although
the sales data have lately
been whipsawed by the effects of this year’s hurricanes, the underlying tone of
consumer spending as the
fourth quarter got under
way was decent.
There is a healthy link between low inflation and solid
consumer spending. Without
steady price increases, retailers are forced to compete,
lowering costs for consumers and allowing them to buy
more. One reason Target’s
results on Wednesday disappointed investors is that its
low prices are boosting sales
but cutting into profits.
If consumers haven’t been
troubled by the modest rate
increases the Fed has put
through so far, they probably
won’t be troubled by another
one in December. And while
there are questions about
how much staying power
consumer spending will
have—the saving rate is low,
hiring gains have been slowing and banks are tightening
lending standards—those are
questions for next year.
—Justin Lahart
On Tuesday, the International Energy Agency cut its
global oil-demand forecast for
both 2017 and 2018 by 100,000
barrels a day. 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.
Weaker seasonal demand
should take a toll on oil prices,
pushing the U.S. market back
toward $50 a barrel, said Michael Loewen, a strategist at
Scotiabank.
This “is likely to once again
result in builds in broader petroleum inventories,” Mr. Loewen wrote on Tuesday.
The EIA reported that gasoline stockpiles unexpectedly
rose by 900,000 barrels last
week, and distillate inventories fell by 800,000, more than
analysts had predicted.
Gasoline futures fell 1.3% to
$1.7388 a gallon and diesel futures rose 0.1% to $1.9087 a
gallon.
—Christopher Alessi
contributed to this article.
WSJ.com/Heard
Altice Rides the Wave
Of Changing Views
Just three months ago, Altice came with the promise
of a continent-hopping M&A
story. Little has changed at
the cable company, but now
investors see it as a heavily
indebted, growth-challenged
European telecom. If that
judgment proves too harsh,
the shares will rocket.
The Amsterdam-listed
stock is down 41% since Halloween, despite an 8% surge
Wednesday, when the new
management team, trying to
stem the shares’ collapse,
committed to paying down
debt and pressing the pause
button on acquisitions. As
recently as August, the company was making moves to
buy rival Charter Communications through its listed
U.S. subsidiary, Altice USA.
Altice has such extreme
leverage that a slight revaluation of its prospects has a
significant impact on its
share price. Its net debt
alone works out at almost
six times this year’s earnings
before interest, taxes, depreciation and amortization, or
Ebitda, using FactSet consensus data. In August, investors thought the company
was valued at roughly 9
times. Now, they think it is
worth about 7.5 times.
Another downward reassessment and the shares
could fall further. This has
prompted jitters in the bond
markets this week, even
though the company has little debt due before 2022.
As his net worth has
plummeted, Altice founder
Patrick Drahi has returned to
the boardroom. Without
sympathetic debt and equity
investors, he cannot revive
his old model of buying and
cutting costs. Instead, he
needs to show he can generate organic growth, above all
in the fiercely competitive
French market.
This won’t be easy, but it
may not pay to bet against
Mr. Drahi. If the value of Altice USA is subtracted from
its parent’s enterprise value,
together with its profit, Altice outside the U.S. is trading at 6.4 times 2017 Ebitda.
That’s a little higher than
the former French state monopoly, Orange, at 6 times.
A better comparison could
be John Malone’s Liberty
Global, which trades at 10.6
times. Its entrepreneurial
culture and debt-heavy capital structure is close to that
of Altice.
Leverage works both
ways. Investors only need to
embrace a slightly more optimistic story and Altice’s
stock could double.
—Stephen Wilmot
OVERHEARD
We all know someone who
still uses an AOL email address, but if those people qualify as cyber dinosaurs then
there are still a few around
who are single-celled organisms of the internet.
CompuServe, a web pioneer
founded in 1969 and acquired
by then-dominant AOL in 1998,
is still around. A visit to its
website mentions email and a
media player “with CD play-
back.” Before those relatively
advanced offerings, though, the
service operated bulletin
boards. A handful of users still
exist, but PC Magazine reports
that the service finally will be
shut down next month.
“I’m in the stunned-and-disbelieving phase,” says one user
quoted by the magazine.
Count the rest of us as
stunned and disbelieving that
the service still existed.
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