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 THURSDAY, NOVEMBER 16, 2017 ~ VOL. CCLXX NO. 117 * * * * * * DJIA 23271.28 g 138.19 0.6% NASDAQ 6706.21 g 0.5% STOXX 600 381.96 g 0.5% 10-YR. TREAS. À 13/32 , yield 2.335% OIL $55.33 g $0.37 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 World’s First “Self-Driving” Database Oracle Autonomous Database No Human Labor – Half the Cost No Human Error – 100x More Reliable oracle.com/selfdrivingdb Human labor refers to tuning, patching, updating, and maintenance of database. Copyright © 2017, Oracle and/or its affiliates. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com 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 (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. 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 email@example.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 All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: firstname.lastname@example.org NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: email@example.com By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: firstname.lastname@example.org; By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS 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 SAN FRANCISCO 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. 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 | 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. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Thursday, November 16, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL. U.S. NEWS 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. 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 | A5 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | 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. 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 | 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 The chance to make healthcare work better propels Torsten forward. His deep understanding of the ever-changing technology landscape enables him to provide future-focused solutions. This mindset, and our agile approach, ensure that we’re able to help customers get to better – faster. It’s just one way our people are helping to accelerate the transformation to a value-based healthcare system. Change Healthcare. Inspiring a better healthcare system. changehealthcare.com ©2017 Change Healthcare Operations, LLC. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com 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 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 | 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 THAN YOU EVER THOUGHT POSSIBLE Our members charter to major destinations worldwide and enjoy never-before-seen low pricing, guaranteed availability, zero upfront commitment, and year-round service reliability. 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We are pioneers in blood and marrow stem cell transplantation and lead organizations that are defining the field—not just in the U.S., but also the world. A member of the Memorial Sloan Kettering – Hackensack Meridian Health Partnership Thursday, November 16, 2017 | A9B 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 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 OYSTER PERPETUAL cosmograph daytona rolex oyster perpetual, cosmograph and daytona are ® trademarks. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10B | 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 !" #"$ $ % & $' ( % ' " ) $ * 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. 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 | 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- Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 30s V Vancouver 40s d t Edmonton 10s 0s P d Portland 50s 30s ip Winnipeg l Helena Billings 50s 0s 20s Eugene Boise <0 10s C Calgary Seattle Bismarckk 40s 30s 10s 20s 20s Ottawa 30s T Toronto pls /St / . Pau Paul Mpls./St. Montreal 30s 40s 40s A Augusta Albany bany Boston Albany 50s 60s oux FFalls ll Pierre Sioux k Milwaukee Hartfordd t Detroit Buffalo 70s Cleve d Cleveland Ch g Chic Chicago Reno Salt L k Lake City ew Y New Yorkk 50s es Des Moines 60s y Cheyenne 80s Ph h d lph hi Philadelphia h Omaha Indianapolis Pittsburgh Sacramento p i gfi ld Springfield Denver h on D.C. D.C DC 90s 50s Washington an Francisco San Kansas Topeka 50s City Charles h Charleston 100+ h d Richmond L Las C d 60s Colorado L Lou St.. Louis L Lou Louisville hit Wichita Vegas p g 70s 50s Springs l igh h Raleigh 60s h Nashville Ange l Los A Angeles Ch l tt Charlotte 60s Santaa F Fe phi Memphis C b Columbia Atl t Atlanta Ab q q Albuquerque Ph i Phoenix klahoma City Oklahoma Warm Rain San Diego 80s Little Rock Tuc Tucson Birmingham D Dallas Ft. Worth 70s Cold T-storms El P Paso Jackson k Jacksonville 70s bil Mobile A ti Austin 80s 20s 0s Stationary Snow t Houston d Orlando ew Orleans New 10s Tampa an Antonio A San 80s 30s 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 Anchorage A h g 40s 80s 80s Honolulu l l Miami 70s U.S. Forecasts Ice City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. 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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. 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 | 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 email@example.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 firstname.lastname@example.org. 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 THE WALL STREET JOURNAL “I’m telling you, the experience was life-changing—for a minute.” 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 | 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. PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Executive Chairman, News Corp Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Matthew J. Murray Deputy Editor in Chief DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head 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 Manufacturer Midwest solar panel manufacturer for sale, including automated production line and 5,000 completed panels. Includes access to two state of the art "breakthrough" technologies. Interested parties can email email@example.com, or call 419-297-5972 ! " # $%& ' # ( ) BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITIES Reduce Your Tax Liability CONSERVATION EASEMENTS Eligible Deductions Available Now 256.390.2777 1-855-TAX-CUT-0 Conservation Easement Advisers, LLC conservationeasements.net Protect your CASH & RETIREMENT Accounts before the next market correction. 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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 GROWTH To advertise: 800-366-3975 or WSJ.com/classiﬁeds Solar Panel Paribas Asset Management. 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. ADVERTISEMENT BUSINESS FOR SALE 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 that rapidly makes waves much larger than those in typical water-park wave pools. Save Up To 60% First & Business INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.cooktravel.net (800) 435-8776 Continued from page B1 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. Maximize the Impact of Your Employee Health Program A sterling alligator bangle Add a touch of whimsy to your wrist with our stylish alligator bangle. Made in Italy of fine sterling silver with exceptional attention to detail. Sparkling emerald eyes further enhance its appeal. 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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 p u r c h a s e 10 top sirloin STEAKS FOR $49.99* AND RECEIVE HO 10 free STEAkburgers O DAY FFER LI 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. DOES YOUR READING LAMP LOOK LIKE THIS ? Our patented lighting technology is light years ahead plus a unique ! " # $ " to help you select the lighting # your # ! # - # . # /& $ #" # # 0 Call For FREE Catalog 888.328.8701 10 (5 oz) Top Sirloin Steaks (#V275) Now $49.99* ORD E R BY NOON (ct) DEC 19 th F O R C H R I S T M A S D E L I V E R Y KansasCitySteaks.com ' ( # !# # ) *&& $ + , " # SEARCH PRIORITY CODE: A712WJ OR CALL 8 00 793 9144 Offer expires 12/31/2017. *$9.95 Shipping applies to standard delivery only. Limit of 5 shipments per customer. Steaks and 10 (4 oz) Steakburgers ship in the same cooler to the same address. Additional shipping charges apply for Overnight, Saturday, Alaska and Hawaii. Not valid with other offers. %& # 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 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 - 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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 ... 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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: email@example.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.